UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 00560
John Hancock Investment Trust
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service) Registrant's telephone number, including area code: 617-543-9634
Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2023 |
ITEM 1. REPORTS TO STOCKHOLDERS.
The Registrant prepared the following annual reports to shareholders for the period ended October 31, 2023:
John Hancock ESG International Equity Fund
John Hancock ESG Large Cap Core Fund
John Hancock Fundamental Large Cap Core Fund
John Hancock Global Environmental Opportunities Fund
John Hancock Global Thematic Opportunities Fund
John Hancock International Dynamic Growth Fund
John Hancock Small Cap Core Fund
Annual report
John Hancock
ESG International Equity Fund
International equity
October 31, 2023
A message to shareholders
Dear shareholders,
Stocks performed well for most of the 12 months ended October 31, 2023, on hopes that falling inflation would allow world central banks to wrap up their long series of interest-rate increases. Economic growth and corporate earnings came in above expectations. Mega-cap U.S. technology-related stocks were a key driver of returns for the broad global indexes, as were the European markets.
The environment grew less favorable during the last three months of the period, as investors became concerned that inflation was set to reaccelerate and central banks would be compelled to keep interest rates higher for longer. The markets were further pressured by the combination of rising oil prices, signs of slowing global growth, and increasing geopolitical tensions, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
ESG International Equity Fund
| | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The MSCI All Country World (ACWI) ex USA Index tracks the performance of publicly traded large- and mid-cap stocks of companies in both developed markets and emerging markets, excluding the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
International equities produced a strong gain during the period
Investors appeared encouraged by the backdrop of better-than-expected economic growth and signs that central banks could be largely finished raising interest rates.
The fund trailed the MSCI ACWI ex-USA Index
Stock selection in the materials and industrials sectors accounted for the majority of the underperformance.
Picks in information technology outperformed
Stock picks in the information technology sector outpaced the index.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectus. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectus.
| | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 3 |
Management’s discussion of fund performance
How would you describe the investment environment during the 12 months ended October 31, 2023?
International stocks delivered a gain. Although global central banks continued to raise interest rates, the markets appeared to grow increasingly optimistic that the long stretch of monetary tightening was nearing its conclusion. In addition, global economic growth��while slowing—surpassed the depressed expectations that were in place at the start of the period. This was particularly true in Europe, where the conflict in Ukraine and the associated disruptions in energy supplies did not depress growth to the extent that investors were anticipating in late 2022. The backdrop grew less favorable later in the period due to rising geopolitical tensions and an emerging consensus that interest rates would stay higher for longer, fueling a sell-off from the beginning of August onward.
What factors helped and hurt the fund’s results?
Stock selection was the primary reason for the fund’s shortfall. The weakest results occurred in the materials sector, where an out-of-benchmark position in the Chilean lithium producer Sociedad Quimica y Minera de Chile S.A. and the British
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Deutsche Telekom AG | 3.4 |
| Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 3.4 |
| Oversea-Chinese Banking Corp., Ltd. | 3.1 |
| Unilever PLC (Euronext Amsterdam Exchange) | 2.8 |
| Schneider Electric SE | 2.7 |
| SAP SE | 2.5 |
| ING Groep NV | 2.5 |
| AXA SA | 2.4 |
| Novo Nordisk A/S, Class B | 2.4 |
| Bank Rakyat Indonesia Persero Tbk PT | 2.4 |
| TOTAL | 27.6 |
| Cash and cash equivalents are not included. |
TOP 10 COUNTRIES
AS OF 10/31/2023 (% of net assets) |
| United Kingdom | 12.6 |
| Japan | 10.3 |
| Germany | 9.6 |
| France | 8.0 |
| China | 6.3 |
| Taiwan | 5.7 |
| Netherlands | 5.4 |
| South Korea | 4.4 |
| Indonesia | 4.3 |
| Denmark | 4.2 |
| TOTAL | 70.8 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | |
green chemicals company Croda International PLC both posted sizable losses. LG Chem, Ltd., a South Korean producer of batteries for electric vehicles, was another detractor.
Stock picks also fell short in the industrials sector, where Kurita Water Industries, Ltd.—a Japanese company that makes water-treatment chemicals—was the leading detractor. WEG SA, an electrical equipment company based in Brazil, and Spirax-Sarco Engineering PLC, a British producer of steam equipment used in clean energy applications, also detracted from results.
Outside of these sectors, two healthcare stocks, Roche Holding AG (Switzerland) and an out-of-benchmark position in BioNTech SE (Germany), came under pressure from falling revenues for COVID-19 products. However, the fund finished in line with the overall healthcare sector due in part to the strong showings for an out-of-benchmark position in Dechra Pharmaceuticals PLC (United Kingdom) and Novo Nordisk A/S (Denmark). We sold the fund’s holdings in BioNTech and Dechra Pharmaceuticals prior to period end.
On the positive side, holdings in the information technology sector outperformed. Taiwan Semiconductor Manufacturing Company, Ltd. (Taiwan) and SK Hynix, Inc. (South Korea) both performed very well amid the broader strength in the global chip industry. German enterprise software company SAP SE also gained ground thanks to better-than-expected top- and bottom-line results, improved forward guidance, and investor excitement about the company’s ability to benefit from the growth of artificial intelligence.
Praveen S. Abichandani, CFA
The views expressed in this report are exclusively those of the portfolio management team at Boston Common Asset Management, LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | 5-year | Since
inception
(12-14-16) | 5-year | Since
inception
(12-14-16) |
| Class A | 1.40 | 2.01 | 3.82 | 10.45 | 29.41 |
| Class I1 | 6.95 | 3.31 | 4.86 | 17.67 | 38.63 |
| Class R61 | 7.07 | 3.41 | 4.96 | 18.27 | 39.58 |
| Index† | 12.07 | 3.46 | 4.21 | 18.53 | 32.77 |
Performance figures assume all distributions have been reinvested. Figures reflect the maximum sales charge on Class A shares of 5%. Sales charges are not applicable to Class I and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class I | Class R6 |
| Gross (%) | 1.43 | 1.18 | 1.07 |
| Net (%) | 1.22 | 0.97 | 0.86 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the MSCI ACWI ex USA Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock ESG International Equity Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI ACWI ex USA Index.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class I1 | 12-14-16 | 13,863 | 13,863 | 13,277 |
| Class R61 | 12-14-16 | 13,958 | 13,958 | 13,277 |
The MSCI All Country World (ACWI) ex USA Index tracks the performance of publicly traded large- and mid-cap stocks of companies in both developed markets and emerging markets, excluding the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectus. |
| | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $887.60 | $5.80 | 1.22% |
| | Hypothetical example | 1,000.00 | 1,019.10 | 6.21 | 1.22% |
| Class I | Actual expenses/actual returns | 1,000.00 | 888.50 | 4.62 | 0.97% |
| | Hypothetical example | 1,000.00 | 1,020.30 | 4.94 | 0.97% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 888.60 | 4.09 | 0.86% |
| | Hypothetical example | 1,000.00 | 1,020.90 | 4.38 | 0.86% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 97.6% | | | | | $137,919,416 |
| (Cost $144,502,929) | | | | | |
| Australia 2.3% | | | | | 3,246,019 |
| Macquarie Group, Ltd. | | 16,937 | 1,740,950 |
| Mirvac Group | | 1,297,192 | 1,505,069 |
| Brazil 2.4% | | | | | 3,465,384 |
| Itau Unibanco Holding SA, ADR | | 361,505 | 1,919,592 |
| WEG SA | | 236,095 | 1,545,792 |
| Canada 1.8% | | | | | 2,530,506 |
| Canadian Pacific Kansas City, Ltd. | | 35,656 | 2,530,506 |
| Chile 0.7% | | | | | 981,600 |
| Sociedad Quimica y Minera de Chile SA, ADR | | 20,281 | 981,600 |
| China 6.3% | | | | | 8,951,448 |
| Alibaba Group Holding, Ltd., ADR (A) | | 24,264 | 2,002,751 |
| BYD Company, Ltd., H Shares | | 80,894 | 2,459,997 |
| Ping An Insurance Group Company of China, Ltd., H Shares | | 411,927 | 2,089,490 |
| Trip.com Group, Ltd., ADR (A) | | 70,565 | 2,399,210 |
| Denmark 4.2% | | | | | 5,879,161 |
| Novo Nordisk A/S, Class B | | 34,668 | 3,344,638 |
| Orsted A/S (B) | | 27,077 | 1,308,337 |
| Vestas Wind Systems A/S (A) | | 56,572 | 1,226,186 |
| Finland 1.8% | | | | | 2,565,025 |
| Sampo OYJ, A Shares | | 65,220 | 2,565,025 |
| France 8.0% | | | | | 11,294,052 |
| AXA SA | | 115,536 | 3,423,382 |
| L’Oreal SA | | 3,572 | 1,501,422 |
| Rexel SA | | 122,874 | 2,509,430 |
| Schneider Electric SE | | 25,087 | 3,859,818 |
| Germany 9.6% | | | | | 13,542,624 |
| Deutsche Telekom AG | | 220,596 | 4,787,741 |
| Hannover Rueck SE | | 8,325 | 1,838,272 |
| Infineon Technologies AG | | 56,738 | 1,657,330 |
| Mercedes-Benz Group AG | | 27,975 | 1,645,889 |
| SAP SE | | 26,939 | 3,613,392 |
| Hong Kong 0.9% | | | | | 1,216,096 |
| China Traditional Chinese Medicine Holdings Company, Ltd. | | 2,467,996 | 1,216,096 |
| India 1.6% | | | | | 2,314,931 |
| HDFC Bank, Ltd., ADR | | 40,936 | 2,314,931 |
| 10 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Indonesia 4.3% | | | | | $6,065,201 |
| Bank Rakyat Indonesia Persero Tbk PT | | 10,604,963 | 3,316,001 |
| Telkom Indonesia Persero Tbk PT | | 12,541,068 | 2,749,200 |
| Ireland 0.9% | | | | | 1,302,512 |
| Kerry Group PLC, Class A | | 8,012 | 618,878 |
| Kerry Group PLC, Class A (London Stock Exchange) | | 8,685 | 683,634 |
| Italy 1.2% | | | | | 1,699,458 |
| Prysmian SpA | | 45,383 | 1,699,458 |
| Japan 10.3% | | | | | 14,552,441 |
| Daikin Industries, Ltd. | | 11,519 | 1,660,797 |
| Eisai Company, Ltd. | | 32,694 | 1,732,074 |
| Hoya Corp. | | 15,903 | 1,530,960 |
| Kurita Water Industries, Ltd. | | 52,751 | 1,602,756 |
| Mitsubishi UFJ Financial Group, Inc. | | 130,500 | 1,094,784 |
| ORIX Corp. | | 179,004 | 3,255,430 |
| Shiseido Company, Ltd. | | 32,636 | 1,035,066 |
| Sony Group Corp. | | 31,761 | 2,640,574 |
| Netherlands 5.4% | | | | | 7,632,898 |
| ASML Holding NV | | 2,710 | 1,629,037 |
| ING Groep NV | | 278,347 | 3,568,557 |
| Koninklijke Ahold Delhaize NV | | 82,241 | 2,435,304 |
| Philippines 1.3% | | | | | 1,836,889 |
| BDO Unibank, Inc. | | 816,042 | 1,836,889 |
| Singapore 3.1% | | | | | 4,356,692 |
| Oversea-Chinese Banking Corp., Ltd. | | 469,921 | 4,356,692 |
| South Africa 1.5% | | | | | 2,062,424 |
| Naspers, Ltd., N Shares (A) | | 13,192 | 2,062,424 |
| South Korea 4.4% | | | | | 6,182,079 |
| LG Chem, Ltd. | | 4,998 | 1,638,055 |
| SK Hynix, Inc. | | 26,714 | 2,319,901 |
| SK Telecom Company, Ltd., ADR | | 109,779 | 2,224,123 |
| Spain 1.4% | | | | | 1,920,201 |
| Industria de Diseno Textil SA | | 55,629 | 1,920,201 |
| Sweden 2.6% | | | | | 3,753,913 |
| Atlas Copco AB, B Shares | | 162,189 | 1,821,910 |
| Essity AB, B Shares | | 84,730 | 1,932,003 |
| Switzerland 2.3% | | | | | 3,283,736 |
| Roche Holding AG | | 12,742 | 3,283,736 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 11 |
| | | | | Shares | Value |
| Taiwan 5.7% | | | | | $8,031,267 |
| Delta Electronics, Inc. | | 208,706 | 1,880,836 |
| Taiwan Semiconductor Manufacturing Company, Ltd., ADR | | 54,621 | 4,714,339 |
| Unimicron Technology Corp. | | 322,000 | 1,436,092 |
| Thailand 1.0% | | | | | 1,495,998 |
| Kasikornbank PCL | | 409,050 | 1,495,998 |
| United Kingdom 12.6% | | | | | 17,756,861 |
| AstraZeneca PLC | | 26,476 | 3,314,897 |
| Barratt Developments PLC | | 337,076 | 1,699,943 |
| ConvaTec Group PLC (B) | | 1,070,985 | 2,661,383 |
| Croda International PLC | | 16,935 | 902,571 |
| Spirax-Sarco Engineering PLC | | 13,137 | 1,311,253 |
| SSE PLC | | 127,548 | 2,534,836 |
| The Sage Group PLC | | 118,020 | 1,394,269 |
| Unilever PLC (Euronext Amsterdam Exchange) | | 83,242 | 3,937,709 |
|
| Total investments (Cost $144,502,929) 97.6% | | | $137,919,416 |
| Other assets and liabilities, net 2.4% | | | 3,417,870 |
| Total net assets 100.0% | | | | | $141,337,286 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| (B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $147,299,803. Net unrealized depreciation aggregated to $9,380,387, of which $8,309,188 related to gross unrealized appreciation and $17,689,575 related to gross unrealized depreciation.
| 12 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $144,502,929) | $137,919,416 |
| Cash | 3,643,077 |
| Foreign currency, at value (Cost $51,543) | 50,591 |
| Dividends and interest receivable | 411,885 |
| Receivable for fund shares sold | 240,246 |
| Receivable from affiliates | 2,577 |
| Other assets | 23,188 |
| Total assets | 142,290,980 |
| Liabilities | |
| Payable for fund shares repurchased | 836,986 |
| Payable to affiliates | |
| Accounting and legal services fees | 10,241 |
| Transfer agent fees | 10,138 |
| Trustees’ fees | 226 |
| Other liabilities and accrued expenses | 96,103 |
| Total liabilities | 953,694 |
| Net assets | $141,337,286 |
| Net assets consist of | |
| Paid-in capital | $159,684,143 |
| Total distributable earnings (loss) | (18,346,857) |
| Net assets | $141,337,286 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($9,729,910 ÷ 800,469 shares)1 | $12.16 |
| Class I ($84,014,728 ÷ 6,892,761 shares) | $12.19 |
| Class R6 ($47,592,648 ÷ 3,900,486 shares) | $12.20 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $12.80 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 13 |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $4,467,763 |
| Interest | 94,895 |
| Less foreign taxes withheld | (383,798) |
| Total investment income | 4,178,860 |
| Expenses | |
| Investment management fees | 1,334,257 |
| Distribution and service fees | 24,529 |
| Accounting and legal services fees | 32,112 |
| Transfer agent fees | 132,057 |
| Trustees’ fees | 3,936 |
| Custodian fees | 86,999 |
| State registration fees | 60,562 |
| Printing and postage | 21,878 |
| Professional fees | 77,244 |
| Other | 29,381 |
| Total expenses | 1,802,955 |
| Less expense reductions | (310,336) |
| Net expenses | 1,492,619 |
| Net investment income | 2,686,241 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | (12,053,623) |
| | (12,053,623) |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 18,330,379 |
| | 18,330,379 |
| Net realized and unrealized gain | 6,276,756 |
| Increase in net assets from operations | $8,962,997 |
| 14 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $2,686,241 | $3,103,522 |
| Net realized loss | (12,053,623) | (1,651,770) |
| Change in net unrealized appreciation (depreciation) | 18,330,379 | (44,088,304) |
| Increase (decrease) in net assets resulting from operations | 8,962,997 | (42,636,552) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | (69,829) | (429,856) |
| Class I | (1,011,407) | (5,821,981) |
| Class R6 | (489,359) | (139,657) |
| Total distributions | (1,570,595) | (6,391,494) |
| From fund share transactions | 2,991,689 | 55,019,223 |
| Total increase | 10,384,091 | 5,991,177 |
| Net assets | | |
| Beginning of year | 130,953,195 | 124,962,018 |
| End of year | $141,337,286 | $130,953,195 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 15 |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $11.49 | $16.88 | $13.87 | $12.78 | $11.63 |
| Net investment income1 | 0.19 | 0.29 | 0.08 | 0.05 | 0.26 |
| Net realized and unrealized gain (loss) on investments | 0.58 | (4.90) | 3.00 | 1.29 | 1.17 |
| Total from investment operations | 0.77 | (4.61) | 3.08 | 1.34 | 1.43 |
| Less distributions | | | | | |
| From net investment income | (0.10) | (0.29) | (0.07) | (0.25) | (0.11) |
| From net realized gain | — | (0.49) | — | — | (0.17) |
| Total distributions | (0.10) | (0.78) | (0.07) | (0.25) | (0.28) |
| Net asset value, end of period | $12.16 | $11.49 | $16.88 | $13.87 | $12.78 |
| Total return (%)2,3 | 6.70 | (28.43) | 22.22 | 10.59 | 12.62 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $10 | $8 | $9 | $6 | $7 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.42 | 1.43 | 1.48 | 1.59 | 1.62 |
| Expenses including reductions | 1.22 | 1.22 | 1.25 | 1.29 | 1.28 |
| Net investment income | 1.42 | 2.19 | 0.46 | 0.36 | 2.12 |
| Portfolio turnover (%) | 27 | 27 | 28 | 34 | 32 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Does not reflect the effect of sales charges, if any. |
| 16 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $11.52 | $16.93 | $13.90 | $12.80 | $11.66 |
| Net investment income1 | 0.23 | 0.34 | 0.18 | 0.08 | 0.28 |
| Net realized and unrealized gain (loss) on investments | 0.57 | (4.93) | 2.95 | 1.30 | 1.17 |
| Total from investment operations | 0.80 | (4.59) | 3.13 | 1.38 | 1.45 |
| Less distributions | | | | | |
| From net investment income | (0.13) | (0.33) | (0.10) | (0.28) | (0.14) |
| From net realized gain | — | (0.49) | — | — | (0.17) |
| Total distributions | (0.13) | (0.82) | (0.10) | (0.28) | (0.31) |
| Net asset value, end of period | $12.19 | $11.52 | $16.93 | $13.90 | $12.80 |
| Total return (%)2 | 6.95 | (28.27) | 22.57 | 10.90 | 12.84 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $84 | $86 | $114 | $55 | $50 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.17 | 1.18 | 1.23 | 1.34 | 1.38 |
| Expenses including reductions | 0.97 | 0.97 | 1.00 | 1.04 | 1.04 |
| Net investment income | 1.70 | 2.48 | 1.05 | 0.62 | 2.31 |
| Portfolio turnover (%) | 27 | 27 | 28 | 34 | 32 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 17 |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $11.53 | $16.95 | $13.91 | $12.81 | $11.67 |
| Net investment income1 | 0.24 | 0.31 | 0.20 | 0.06 | 0.31 |
| Net realized and unrealized gain (loss) on investments | 0.58 | (4.89) | 2.96 | 1.33 | 1.15 |
| Total from investment operations | 0.82 | (4.58) | 3.16 | 1.39 | 1.46 |
| Less distributions | | | | | |
| From net investment income | (0.15) | (0.35) | (0.12) | (0.29) | (0.15) |
| From net realized gain | — | (0.49) | — | — | (0.17) |
| Total distributions | (0.15) | (0.84) | (0.12) | (0.29) | (0.32) |
| Net asset value, end of period | $12.20 | $11.53 | $16.95 | $13.91 | $12.81 |
| Total return (%)2 | 7.07 | (28.22) | 22.73 | 11.01 | 12.95 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $48 | $37 | $2 | $1 | $2 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.06 | 1.07 | 1.12 | 1.23 | 1.27 |
| Expenses including reductions | 0.86 | 0.86 | 0.90 | 0.92 | 0.92 |
| Net investment income | 1.79 | 2.49 | 1.21 | 0.42 | 2.54 |
| Portfolio turnover (%) | 27 | 27 | 28 | 34 | 32 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 18 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock ESG International Equity Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee, following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
| | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 19 |
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2023, by major security category or type:
| | Total
value at
10-31-23 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Australia | $3,246,019 | — | $3,246,019 | — |
| Brazil | 3,465,384 | $3,465,384 | — | — |
| Canada | 2,530,506 | 2,530,506 | — | — |
| Chile | 981,600 | 981,600 | — | — |
| China | 8,951,448 | 4,401,961 | 4,549,487 | — |
| Denmark | 5,879,161 | — | 5,879,161 | — |
| Finland | 2,565,025 | — | 2,565,025 | — |
| France | 11,294,052 | — | 11,294,052 | — |
| Germany | 13,542,624 | — | 13,542,624 | — |
| Hong Kong | 1,216,096 | — | 1,216,096 | — |
| India | 2,314,931 | 2,314,931 | — | — |
| Indonesia | 6,065,201 | — | 6,065,201 | — |
| Ireland | 1,302,512 | — | 1,302,512 | — |
| Italy | 1,699,458 | — | 1,699,458 | — |
| Japan | 14,552,441 | — | 14,552,441 | — |
| Netherlands | 7,632,898 | — | 7,632,898 | — |
| Philippines | 1,836,889 | — | 1,836,889 | — |
| Singapore | 4,356,692 | — | 4,356,692 | — |
| South Africa | 2,062,424 | — | 2,062,424 | — |
| South Korea | 6,182,079 | 2,224,123 | 3,957,956 | — |
| Spain | 1,920,201 | — | 1,920,201 | — |
| Sweden | 3,753,913 | — | 3,753,913 | — |
| Switzerland | 3,283,736 | — | 3,283,736 | — |
| Taiwan | 8,031,267 | 4,714,339 | 3,316,928 | — |
| Thailand | 1,495,998 | — | 1,495,998 | — |
| 20 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | |
| | Total
value at
10-31-23 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| United Kingdom | $17,756,861 | — | $17,756,861 | — |
| Total investments in securities | $137,919,416 | $20,632,844 | $117,286,572 | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
There may be unexpected restrictions on investments or on exposures to investments in companies located in certain foreign countries, such as China. For example, a government may restrict investment in companies or industries considered important to national interests, or intervene in the financial markets, such as by imposing trading restrictions, or banning or curtailing short selling. As a result of forced sales of a security, or inability to participate in an investment the manager otherwise believes is attractive, a fund may incur losses.
Trading in certain Chinese securities through Hong Kong Stock Connect or Bond Connect, mutual market access programs that enable foreign investment in the People’s Republic of China, is subject to certain restrictions and risks. Securities offered through these programs may lose purchase eligibility and any changes in laws, regulations and policies impacting these programs may affect security prices, which could adversely affect the fund’s performance.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
| | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 21 |
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $4,238.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2023, the fund has a short-term capital loss carryforward of $1,070,644 and a long-term capital loss carryforward of $10,816,948 available to offset future net realized capital gains. These carryforwards do not expire.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $1,570,595 | $3,189,945 |
| Long-term capital gains | — | 3,201,549 |
| Total | $1,570,595 | $6,391,494 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $2,924,392 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
| 22 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | |
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, investments in passive foreign investment companies and wash sale loss deferrals.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.850% of the first $250 million of the fund’s average daily net assets; b) 0.800% of the next $500 million of the fund’s average daily net assets; and c) 0.750% of the fund’s average daily net assets in excess of $750 million. The Advisor has a subadvisory agreement with Boston Common Asset Management, LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.85% of average daily net assets of the fund. For purposes of this agreement, “expenses of the fund” means all fund expenses, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. This agreement expires on February 28, 2024, unless renewed by mutual agreement of the Advisor and the fund based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $19,550 |
| Class I | 196,805 |
| Class | Expense reduction |
| Class R6 | $93,981 |
| Total | $310,336 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
| | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 23 |
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.65% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $18,556 for the year ended October 31, 2023. Of this amount, $3,069 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $15,487 was paid as sales commissions to broker-dealers.
Class A shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, CDSCs received by the Distributor amounted to $32 for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $24,529 | $11,523 |
| Class I | — | 117,324 |
| Class R6 | — | 3,210 |
| Total | $24,529 | $132,057 |
| 24 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. Interest expense is included in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower
or Lender | Weighted Average
Loan Balance | Days
Outstanding | Weighted Average
Interest Rate | Interest Income
(Expense) |
| Borrower | $10,600,000 | 1 | 5.795% | $(1,706) |
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 326,959 | $4,315,022 | 302,219 | $4,034,209 |
| Distributions reinvested | 5,582 | 69,829 | 28,187 | 429,856 |
| Repurchased | (199,258) | (2,632,758) | (208,655) | (2,767,409) |
| Net increase | 133,283 | $1,752,093 | 121,751 | $1,696,656 |
| Class I shares | | | | |
| Sold | 1,983,913 | $25,973,982 | 2,794,047 | $38,308,867 |
| Distributions reinvested | 48,458 | 606,689 | 217,779 | 3,321,135 |
| Repurchased | (2,593,281) | (34,085,715) | (2,284,822) | (31,929,660) |
| Net increase (decrease) | (560,910) | $(7,505,044) | 727,004 | $9,700,342 |
| Class R6 shares | | | | |
| Sold | 856,727 | $11,343,193 | 3,233,408 | $44,865,849 |
| Distributions reinvested | 9,553 | 119,604 | 9,152 | 139,657 |
| Repurchased | (209,069) | (2,718,157) | (109,776) | (1,383,281) |
| Net increase | 657,211 | $8,744,640 | 3,132,784 | $43,622,225 |
| Total net increase | 229,584 | $2,991,689 | 3,981,539 | $55,019,223 |
Affiliates of the fund owned 27% and 64% of shares of Class I and Class R6, respectively, on October 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $47,654,043 and $41,072,782, respectively, for the year ended October 31, 2023.
| | ANNUAL REPORT | JOHN HANCOCK ESG International Equity Fund | 25 |
Note 7—Environmental, social, and governance (ESG) investing risk
Incorporating ESG criteria and investing primarily in instruments that have certain ESG characteristics, as determined by the manager, carries the risk that the fund may perform differently, including underperforming, funds that do not utilize an ESG investment strategy, or funds that utilize different ESG criteria. Although the manager has established its own process for evaluation of ESG factors, successful application of the fund’s sustainable investment strategy will depend on the manager’s skill in researching, identifying and analyzing material ESG issues as well as on the availability of relevant data. ESG factors may be evaluated differently by different managers, and may not carry the same meaning to all investors and managers. The regulatory landscape with respect to ESG investing in the United States is evolving and any future rules or regulations may require the fund to change its investment process with respect to ESG integration.
| 26 | JOHN HANCOCK ESG International Equity Fund | ANNUAL REPORT | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock ESG International Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock ESG International Equity Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the five years in the period ended October 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
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(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
Income derived from foreign sources was $4,470,153. The fund intends to pass through foreign tax credits of $382,276.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
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EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Boston Common Asset Management, LLC (the Subadvisor), for John Hancock ESG International Equity Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent, and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
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Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives; review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications, and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
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| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the three- and five-year periods and underperformed for the one-year period ended December 31, 2022. The Board also noted that the fund outperformed the peer group median for the five-year period and underperformed for the one- and three-year periods ended December 31, 2022. The Board took into account management’s discussion of the fund’s performance, including favorable performance relative to its benchmark index for the three- and five-year periods and the peer group median for the five-year period. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index over the longer term.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in
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its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| (j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or |
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| | otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
| (4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of
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orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index over the longer term; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
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| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
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This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
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| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
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| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| 38 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 39 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Boston Common Asset Management, LLC
Portfolio Managers
Praveen S. Abichandani, CFA
Corné Biemans
Matthew A. Zalosh, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| 40 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Environmental Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock ESG International Equity Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
Annual report
John Hancock
ESG Large Cap Core Fund
U.S. equity
October 31, 2023
A message to shareholders
Dear shareholder,
U.S. stocks posted gains for the 12 months ended October 31, 2023, although losses were experienced during the final three months of the period. Even though the U.S. Federal Reserve continued to raise interest rates, falling inflation gave investors confidence that the tightening cycle would likely recede at some point within the next year. Economic growth, while slowing, remained in positive territory even as interest rates rose. Together, these factors helped stocks overcome potential headwinds such as ongoing geopolitical instability, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
ESG Large Cap Core Fund
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Markets had a volatile period
The ongoing conflict in Ukraine and, late in the period, in the Gaza Strip cast a shadow over global markets.
The fund underperformed its benchmark, the S&P 500 Index
The fund lagged due to weak security selection in the financials and communication services sectors, along with an underweight in the latter category.
Positive performance impacts
Strong security selection in healthcare aided the fund’s performance.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectuses. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectuses.
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 3 |
Management’s discussion of fund performance
How did the stock market perform during the 12 months ended October 31, 2023?
Stock investors experienced a volatile year marked by geopolitical instability. The ongoing conflict in Ukraine and, late in the period, between Israel and Hamas cast a shadow over global markets. Late in the period, the U.S. Federal Reserve paused its program of interest-rate hikes as inflation moderated and as it hoped to achieve a soft economic landing. Against this backdrop, the U.S. large-cap equity market rose this period, mainly on the strength of several growth stocks.
How did the fund perform, and which stocks most influenced its relative performance?
The fund trailed its benchmark, mostly due to weak security selection in the financials and communication services sectors, while an underweight in this latter category also detracted. In contrast, stock picking in healthcare added relative value.
One of the fund’s largest relative detractors was not owning Meta Platforms, Inc., parent of Facebook. Another was an underweight in NVIDIA Corp., a maker of specialized chips for graphics processing, gaming, and artificial intelligence (AI). For much of this period, the fund underweighted NVIDIA, whose stock rose sharply on the strength of the firm’s AI business. Late in the period, we moved the fund to a
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Microsoft Corp. | 7.7 |
| Apple, Inc. | 7.0 |
| Alphabet, Inc., Class A | 4.9 |
| NVIDIA Corp. | 3.3 |
| Merck & Company, Inc. | 2.7 |
| Elevance Health, Inc. | 2.6 |
| Costco Wholesale Corp. | 2.6 |
| The TJX Companies, Inc. | 2.4 |
| Mastercard, Inc., Class A | 2.3 |
| Palo Alto Networks, Inc. | 2.1 |
| TOTAL | 37.6 |
| Cash and cash equivalents are not included. |
COUNTRY COMPOSITION
AS OF 10/31/2023 (% of net assets) |
| United States | 87.9 |
| Ireland | 3.9 |
| United Kingdom | 3.1 |
| Netherlands | 2.3 |
| Canada | 1.4 |
| Denmark | 1.4 |
| TOTAL | 100.0 |
| 4 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
modest overweight in this stock. Other notable detractors were Target Corp., whose shares fell as the retailer encountered business challenges, and Elevance Health, Inc., a managed healthcare firm that struggled on investors’ concern about changes to Medicare payment rules.
In contrast, the fund’s largest contributor was an out-of-benchmark position in Novo Nordisk A/S, a Danish drugmaker whose shares rose on excitement about the financial prospects for Ozempic, the firm’s diabetes drug that showed further promise as a treatment for obesity. Also adding value was Palo Alto Networks, Inc., a network-security company that has benefited from increased demand for cybersecurity products, and Adobe, Inc., an electronic publishing company that benefited from its perceived business opportunities related to AI.
Can you tell us about an addition to the portfolio management team?
Effective September 14, 2023, Samantha D’Amore joined the management team.
Cheryl I. Smith, Ph.D., CFA
The views expressed in this report are exclusively those of the portfolio management team at Trillium Asset Management, LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | 5-year | Since
inception
(6-6-16) | 5-year | Since
inception
(6-6-16) |
| Class A | 1.75 | 8.93 | 9.77 | 53.34 | 99.48 |
| Class C | 5.30 | 9.24 | 9.72 | 55.54 | 98.80 |
| Class I1 | 7.35 | 10.33 | 10.82 | 63.46 | 114.04 |
| Class R61 | 7.47 | 10.44 | 10.94 | 64.31 | 115.73 |
| Index† | 10.14 | 11.01 | 11.80 | 68.59 | 128.41 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class C | Class I | Class R6 |
| Gross (%) | 1.26 | 2.01 | 1.01 | 0.91 |
| Net (%) | 1.12 | 1.87 | 0.87 | 0.76 |
Please refer to the most recent prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the S&P 500 Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock ESG Large Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the S&P 500 Index.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class C2 | 6-6-16 | 19,880 | 19,880 | 22,841 |
| Class I1 | 6-6-16 | 21,404 | 21,404 | 22,841 |
| Class R61 | 6-6-16 | 21,573 | 21,573 | 22,841 |
The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectus. |
| 2 | The contingent deferred sales charge is not applicable. |
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $989.00 | $5.61 | 1.12% |
| | Hypothetical example | 1,000.00 | 1,019.60 | 5.70 | 1.12% |
| Class C | Actual expenses/actual returns | 1,000.00 | 985.40 | 9.36 | 1.87% |
| | Hypothetical example | 1,000.00 | 1,015.80 | 9.50 | 1.87% |
| Class I | Actual expenses/actual returns | 1,000.00 | 990.60 | 4.37 | 0.87% |
| | Hypothetical example | 1,000.00 | 1,020.80 | 4.43 | 0.87% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 991.10 | 3.81 | 0.76% |
| | Hypothetical example | 1,000.00 | 1,021.40 | 3.87 | 0.76% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 98.9% | | | | | $112,779,270 |
| (Cost $74,882,184) | | | | | |
| Communication services 5.9% | | | 6,771,543 |
| Diversified telecommunication services 1.0% | | | |
| Verizon Communications, Inc. | | | 33,579 | 1,179,630 |
| Interactive media and services 4.9% | | | |
| Alphabet, Inc., Class A (A) | | | 45,067 | 5,591,913 |
| Consumer discretionary 8.8% | | | 10,035,631 |
| Automobile components 0.6% | | | |
| Aptiv PLC (A) | | | 7,900 | 688,880 |
| Hotels, restaurants and leisure 1.4% | | | |
| Chipotle Mexican Grill, Inc. (A) | | | 536 | 1,041,019 |
| Starbucks Corp. | | | 6,338 | 584,617 |
| Specialty retail 4.4% | | | |
| The Home Depot, Inc. | | | 4,591 | 1,307,012 |
| The TJX Companies, Inc. | | | 30,526 | 2,688,425 |
| Tractor Supply Company | | | 5,266 | 1,014,021 |
| Textiles, apparel and luxury goods 2.4% | | | |
| Lululemon Athletica, Inc. (A) | | | 4,171 | 1,641,205 |
| NIKE, Inc., Class B | | | 10,416 | 1,070,452 |
| Consumer staples 8.7% | | | 9,976,400 |
| Consumer staples distribution and retail 5.3% | | | |
| Costco Wholesale Corp. | | | 5,289 | 2,921,855 |
| Sysco Corp. | | | 19,341 | 1,285,983 |
| Target Corp. | | | 16,475 | 1,825,265 |
| Food products 0.8% | | | |
| McCormick & Company, Inc. | | | 14,564 | 930,640 |
| Household products 1.2% | | | |
| The Procter & Gamble Company | | | 8,902 | 1,335,567 |
| Personal care products 1.4% | | | |
| Unilever PLC, ADR | | | 35,419 | 1,677,090 |
| Financials 11.4% | | | 12,951,163 |
| Banks 1.7% | | | |
| Bank of America Corp. | | | 45,043 | 1,186,433 |
| The PNC Financial Services Group, Inc. | | | 6,199 | 709,600 |
| Capital markets 1.2% | | | |
| LPL Financial Holdings, Inc. | | | 6,058 | 1,360,142 |
| Financial services 3.8% | | | |
| Mastercard, Inc., Class A | | | 7,061 | 2,657,407 |
| 10 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Financials (continued) | | | |
| Financial services (continued) | | | |
| Visa, Inc., Class A | | | 7,247 | $1,703,770 |
| Insurance 4.7% | | | |
| Aflac, Inc. | | | 20,786 | 1,623,594 |
| The Progressive Corp. | | | 11,721 | 1,852,973 |
| The Travelers Companies, Inc. | | | 11,092 | 1,857,244 |
| Health care 15.7% | | | 17,908,724 |
| Health care equipment and supplies 1.7% | | | |
| Becton, Dickinson and Company | | | 3,122 | 789,179 |
| Stryker Corp. | | | 4,054 | 1,095,472 |
| Health care providers and services 5.4% | | | |
| CVS Health Corp. | | | 17,640 | 1,217,336 |
| Elevance Health, Inc. | | | 6,525 | 2,936,837 |
| UnitedHealth Group, Inc. | | | 3,844 | 2,058,693 |
| Life sciences tools and services 2.9% | | | |
| IQVIA Holdings, Inc. (A) | | | 4,916 | 888,960 |
| Thermo Fisher Scientific, Inc. | | | 2,074 | 922,453 |
| West Pharmaceutical Services, Inc. | | | 4,870 | 1,550,072 |
| Pharmaceuticals 5.7% | | | |
| AstraZeneca PLC, ADR | | | 28,569 | 1,806,418 |
| Merck & Company, Inc. | | | 29,432 | 3,022,666 |
| Novo Nordisk A/S, ADR | | | 16,782 | 1,620,638 |
| Industrials 10.6% | | | 12,093,068 |
| Air freight and logistics 1.1% | | | |
| United Parcel Service, Inc., Class B | | | 9,018 | 1,273,793 |
| Building products 1.3% | | | |
| Trane Technologies PLC | | | 8,016 | 1,525,525 |
| Commercial services and supplies 1.5% | | | |
| Waste Management, Inc. | | | 10,510 | 1,727,108 |
| Construction and engineering 0.8% | | | |
| Quanta Services, Inc. | | | 5,453 | 911,305 |
| Electrical equipment 2.5% | | | |
| Eaton Corp. PLC | | | 9,996 | 2,078,268 |
| Rockwell Automation, Inc. | | | 2,982 | 783,699 |
| Ground transportation 1.1% | | | |
| JB Hunt Transport Services, Inc. | | | 7,340 | 1,261,526 |
| Machinery 1.2% | | | |
| Deere & Company | | | 3,565 | 1,302,508 |
| Professional services 1.1% | | | |
| Verisk Analytics, Inc. | | | 5,407 | 1,229,336 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 11 |
| | | | | Shares | Value |
| Information technology 29.4% | | | $33,498,527 |
| IT services 2.0% | | | |
| Accenture PLC, Class A | | | 7,457 | 2,215,400 |
| Semiconductors and semiconductor equipment 7.1% | | | |
| ASML Holding NV, NYRS | | | 2,703 | 1,618,583 |
| First Solar, Inc. (A) | | | 6,105 | 869,657 |
| NVIDIA Corp. | | | 9,137 | 3,726,069 |
| NXP Semiconductors NV | | | 5,593 | 964,401 |
| Texas Instruments, Inc. | | | 6,385 | 906,734 |
| Software 13.3% | | | |
| Adobe, Inc. (A) | | | 4,101 | 2,181,978 |
| Microsoft Corp. | | | 25,866 | 8,745,556 |
| Palo Alto Networks, Inc. (A) | | | 9,786 | 2,378,194 |
| ServiceNow, Inc. (A) | | | 3,216 | 1,871,230 |
| Technology hardware, storage and peripherals 7.0% | | | |
| Apple, Inc. | | | 46,968 | 8,020,725 |
| Materials 2.6% | | | 2,925,130 |
| Chemicals 2.6% | | | |
| Ecolab, Inc. | | | 5,429 | 910,660 |
| International Flavors & Fragrances, Inc. | | | 8,366 | 571,816 |
| Linde PLC | | | 3,775 | 1,442,654 |
| Real estate 4.3% | | | 4,896,588 |
| Industrial REITs 0.8% | | | |
| Prologis, Inc. | | | 9,065 | 913,299 |
| Residential REITs 0.8% | | | |
| AvalonBay Communities, Inc. | | | 5,242 | 868,809 |
| Specialized REITs 2.7% | | | |
| American Tower Corp. | | | 11,279 | 2,009,805 |
| Equinix, Inc. | | | 1,514 | 1,104,675 |
| Utilities 1.5% | | | 1,722,496 |
| Electric utilities 0.8% | | | |
| Avangrid, Inc. | | | 31,785 | 949,418 |
| Water utilities 0.7% | | | |
| American Water Works Company, Inc. | | | 6,571 | 773,078 |
|
| | | Yield (%) | | Shares | Value |
| Short-term investments 1.3% | | | | | $1,497,518 |
| (Cost $1,497,518) | | | | | |
| Short-term funds 1.3% | | | | | 1,497,518 |
| Federated Government Obligations Fund, Institutional Class | 5.2186(B) | | 1,497,518 | 1,497,518 |
| 12 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
|
| Total investments (Cost $76,379,702) 100.2% | | | $114,276,788 |
| Other assets and liabilities, net (0.2%) | | | | (247,031) |
| Total net assets 100.0% | | | | | $114,029,757 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| NYRS | New York Registry Shares |
| (A) | Non-income producing security. |
| (B) | The rate shown is the annualized seven-day yield as of 10-31-23. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $76,630,970. Net unrealized appreciation aggregated to $37,645,818, of which $40,439,077 related to gross unrealized appreciation and $2,793,259 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 13 |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $76,379,702) | $114,276,788 |
| Dividends and interest receivable | 88,100 |
| Receivable for fund shares sold | 308,713 |
| Other assets | 43,313 |
| Total assets | 114,716,914 |
| Liabilities | |
| Payable for fund shares repurchased | 600,047 |
| Payable to affiliates | |
| Investment management fees | 753 |
| Accounting and legal services fees | 8,383 |
| Transfer agent fees | 11,078 |
| Trustees’ fees | 214 |
| Other liabilities and accrued expenses | 66,682 |
| Total liabilities | 687,157 |
| Net assets | $114,029,757 |
| Net assets consist of | |
| Paid-in capital | $76,057,305 |
| Total distributable earnings (loss) | 37,972,452 |
| Net assets | $114,029,757 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($25,438,406 ÷ 1,347,808 shares)1 | $18.87 |
| Class C ($3,883,866 ÷ 213,051 shares)1 | $18.23 |
| Class I ($75,384,311 ÷ 3,979,893 shares) | $18.94 |
| Class R6 ($9,323,174 ÷ 491,618 shares) | $18.96 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $19.86 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 14 | JOHN HANCOCK ESG Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $2,030,608 |
| Less foreign taxes withheld | (4,045) |
| Total investment income | 2,026,563 |
| Expenses | |
| Investment management fees | 961,512 |
| Distribution and service fees | 102,736 |
| Accounting and legal services fees | 26,976 |
| Transfer agent fees | 141,417 |
| Trustees’ fees | 3,445 |
| Custodian fees | 43,505 |
| State registration fees | 72,942 |
| Printing and postage | 19,288 |
| Professional fees | 57,177 |
| Other | 21,175 |
| Total expenses | 1,450,173 |
| Less expense reductions | (243,713) |
| Net expenses | 1,206,460 |
| Net investment income | 820,103 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments | 887,849 |
| | 887,849 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments | 8,100,988 |
| | 8,100,988 |
| Net realized and unrealized gain | 8,988,837 |
| Increase in net assets from operations | $9,808,940 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 15 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $820,103 | $766,899 |
| Net realized gain (loss) | 887,849 | (1,243,080) |
| Change in net unrealized appreciation (depreciation) | 8,100,988 | (36,468,276) |
| Increase (decrease) in net assets resulting from operations | 9,808,940 | (36,944,457) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | (104,707) | (611,278) |
| Class C | — | (161,131) |
| Class I | (688,616) | (5,092,980) |
| Class R6 | (53,213) | (141,671) |
| Total distributions | (846,536) | (6,007,060) |
| From fund share transactions | (35,220,861) | (9,279,540) |
| Total decrease | (26,258,457) | (52,231,057) |
| Net assets | | |
| Beginning of year | 140,288,214 | 192,519,271 |
| End of year | $114,029,757 | $140,288,214 |
| 16 | JOHN HANCOCK ESG Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $17.70 | $22.34 | $15.63 | $14.48 | $12.79 |
| Net investment income1 | 0.09 | 0.05 | —2 | 0.06 | 0.07 |
| Net realized and unrealized gain (loss) on investments | 1.16 | (4.04) | 7.09 | 1.28 | 1.88 |
| Total from investment operations | 1.25 | (3.99) | 7.09 | 1.34 | 1.95 |
| Less distributions | | | | | |
| From net investment income | (0.08) | —2 | (0.05) | (0.07) | (0.05) |
| From net realized gain | — | (0.65) | (0.33) | (0.12) | (0.21) |
| Total distributions | (0.08) | (0.65) | (0.38) | (0.19) | (0.26) |
| Net asset value, end of period | $18.87 | $17.70 | $22.34 | $15.63 | $14.48 |
| Total return (%)3,4 | 7.10 | (18.36) | 46.10 | 9.29 | 15.59 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $25 | $22 | $20 | $5 | $9 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.31 | 1.26 | 1.30 | 1.46 | 1.47 |
| Expenses including reductions | 1.12 | 1.12 | 1.15 | 1.18 | 1.18 |
| Net investment income | 0.46 | 0.25 | 0.01 | 0.43 | 0.54 |
| Portfolio turnover (%) | 12 | 16 | 145 | 30 | 21 |
| 1 | Based on average daily shares outstanding. |
| 2 | Less than $0.005 per share. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Does not reflect the effect of sales charges, if any. |
| 5 | Excludes merger activity. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 17 |
| CLASS C SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $17.15 | $21.82 | $15.34 | $14.26 | $12.64 |
| Net investment loss1 | (0.05) | (0.09) | (0.14) | (0.05) | (0.03) |
| Net realized and unrealized gain (loss) on investments | 1.13 | (3.93) | 6.95 | 1.25 | 1.86 |
| Total from investment operations | 1.08 | (4.02) | 6.81 | 1.20 | 1.83 |
| Less distributions | | | | | |
| From net realized gain | — | (0.65) | (0.33) | (0.12) | (0.21) |
| Net asset value, end of period | $18.23 | $17.15 | $21.82 | $15.34 | $14.26 |
| Total return (%)2,3 | 6.30 | (18.96) | 45.03 | 8.47 | 14.78 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $4 | $4 | $5 | $2 | $2 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 2.06 | 2.01 | 2.05 | 2.21 | 2.22 |
| Expenses including reductions | 1.87 | 1.87 | 1.90 | 1.93 | 1.93 |
| Net investment loss | (0.29) | (0.50) | (0.73) | (0.34) | (0.21) |
| Portfolio turnover (%) | 12 | 16 | 144 | 30 | 21 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Does not reflect the effect of sales charges, if any. |
| 4 | Excludes merger activity. |
| 18 | JOHN HANCOCK ESG Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $17.77 | $22.41 | $15.67 | $14.51 | $12.82 |
| Net investment income1 | 0.14 | 0.10 | 0.06 | 0.10 | 0.11 |
| Net realized and unrealized gain (loss) on investments | 1.16 | (4.04) | 7.10 | 1.28 | 1.87 |
| Total from investment operations | 1.30 | (3.94) | 7.16 | 1.38 | 1.98 |
| Less distributions | | | | | |
| From net investment income | (0.13) | (0.05) | (0.09) | (0.10) | (0.08) |
| From net realized gain | — | (0.65) | (0.33) | (0.12) | (0.21) |
| Total distributions | (0.13) | (0.70) | (0.42) | (0.22) | (0.29) |
| Net asset value, end of period | $18.94 | $17.77 | $22.41 | $15.67 | $14.51 |
| Total return (%)2 | 7.35 | (18.13) | 46.49 | 9.58 | 15.86 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $75 | $108 | $164 | $58 | $51 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.06 | 1.01 | 1.05 | 1.21 | 1.23 |
| Expenses including reductions | 0.87 | 0.87 | 0.90 | 0.93 | 0.93 |
| Net investment income | 0.73 | 0.49 | 0.28 | 0.64 | 0.79 |
| Portfolio turnover (%) | 12 | 16 | 143 | 30 | 21 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes merger activity. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 19 |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $17.79 | $22.44 | $15.69 | $14.52 | $12.83 |
| Net investment income1 | 0.15 | 0.12 | 0.07 | 0.12 | 0.12 |
| Net realized and unrealized gain (loss) on investments | 1.17 | (4.05) | 7.11 | 1.28 | 1.87 |
| Total from investment operations | 1.32 | (3.93) | 7.18 | 1.40 | 1.99 |
| Less distributions | | | | | |
| From net investment income | (0.15) | (0.07) | (0.10) | (0.11) | (0.09) |
| From net realized gain | — | (0.65) | (0.33) | (0.12) | (0.21) |
| Total distributions | (0.15) | (0.72) | (0.43) | (0.23) | (0.30) |
| Net asset value, end of period | $18.96 | $17.79 | $22.44 | $15.69 | $14.52 |
| Total return (%)2 | 7.47 | (18.07) | 46.63 | 9.75 | 15.97 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $9 | $6 | $4 | $1 | $2 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.95 | 0.91 | 0.94 | 1.10 | 1.12 |
| Expenses including reductions | 0.76 | 0.76 | 0.79 | 0.82 | 0.82 |
| Net investment income | 0.80 | 0.61 | 0.37 | 0.77 | 0.90 |
| Portfolio turnover (%) | 12 | 16 | 143 | 30 | 21 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes merger activity. |
| 20 | JOHN HANCOCK ESG Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock ESG Large Cap Core Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities
| | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 21 |
valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of October 31, 2023, all investments are categorized as Level 1 under the hierarchy described above.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $4,112.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
| 22 | JOHN HANCOCK ESG Large Cap Core Fund | ANNUAL REPORT | |
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2023, the fund has a short-term capital loss carryforward of $252,207 available to offset future net realized capital gains. This carryforward does not expire.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $846,536 | $370,164 |
| Long-term capital gains | — | 5,636,896 |
| Total | $846,536 | $6,007,060 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $578,841 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
| | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 23 |
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.750% of the first $250 million of the fund’s average daily net assets; b) 0.725% of the next $250 million of the fund’s average daily net assets; c) 0.700% of the next $500 million of the fund’s average daily net assets; and d) 0.700% of the fund’s average daily net assets in excess of $1 billion. If net assets exceed $1 billion, then the advisory fee to be paid is 0.700% on all asset levels of average daily net assets. The Advisor has a subadvisory agreement with Trillium Asset Management, LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.75% of average daily net assets of the fund. Expenses of the fund means all expenses of the fund, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. This agreement expires on February 28, 2024, unless renewed by mutual agreement of the Advisor and the fund based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $47,320 |
| Class C | 7,729 |
| Class I | 173,230 |
| Class | Expense reduction |
| Class R6 | $15,434 |
| Total | $243,713 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.56% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
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| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
| Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $30,868 for the year ended October 31, 2023. Of this amount, $4,886 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $25,982 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, CDSCs received by the Distributor amounted to $179 and $682 for Class A and Class C shares, respectively.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $62,125 | $29,177 |
| Class C | 40,611 | 4,767 |
| Class I | — | 106,942 |
| Class R6 | — | 531 |
| Total | $102,736 | $141,417 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating
| | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 25 |
affiliated funds. At period end, no interfund loans were outstanding. Interest expense is included in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower
or Lender | Weighted Average
Loan Balance | Days
Outstanding | Weighted Average
Interest Rate | Interest Income
(Expense) |
| Borrower | $2,700,000 | 2 | 5.307% | $(796) |
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 371,548 | $6,977,369 | 616,558 | $12,215,419 |
| Distributions reinvested | 5,980 | 104,707 | 28,551 | 611,278 |
| Repurchased | (284,560) | (5,381,805) | (273,794) | (5,380,178) |
| Net increase | 92,968 | $1,700,271 | 371,315 | $7,446,519 |
| Class C shares | | | | |
| Sold | 40,684 | $731,077 | 50,640 | $999,693 |
| Distributions reinvested | — | — | 7,721 | 161,131 |
| Repurchased | (64,918) | (1,171,709) | (63,506) | (1,118,281) |
| Net increase (decrease) | (24,234) | $(440,632) | (5,145) | $42,543 |
| Class I shares | | | | |
| Sold | 843,531 | $16,047,988 | 1,895,239 | $37,480,638 |
| Distributions reinvested | 29,468 | 516,869 | 150,612 | 3,229,126 |
| Repurchased | (2,999,022) | (56,433,761) | (3,239,685) | (60,235,411) |
| Net decrease | (2,126,023) | $(39,868,904) | (1,193,834) | $(19,525,647) |
| Class R6 shares | | | | |
| Sold | 289,624 | $5,467,986 | 188,231 | $3,728,843 |
| Distributions reinvested | 3,034 | 53,213 | 6,605 | 141,671 |
| Repurchased | (111,730) | (2,132,795) | (58,082) | (1,113,469) |
| Net increase | 180,928 | $3,388,404 | 136,754 | $2,757,045 |
| Total net decrease | (1,876,361) | $(35,220,861) | (690,910) | $(9,279,540) |
Affiliates of the fund owned 7% of shares of Class I on October 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $15,607,368 and $50,001,843, respectively, for the year ended October 31, 2023.
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Note 7—Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
Note 8—Environmental, social, and governance (ESG) investing risk
Incorporating ESG criteria and investing primarily in instruments that have certain ESG characteristics, as determined by the manager, carries the risk that the fund may perform differently, including underperforming, funds that do not utilize an ESG investment strategy, or funds that utilize different ESG criteria. Although the manager has established its own process for evaluation of ESG factors, successful application of the fund’s sustainable investment strategy will depend on the manager’s skill in researching, identifying and analyzing material ESG issues as well as on the availability of relevant data. ESG factors may be evaluated differently by different managers, and may not carry the same meaning to all investors and managers. The regulatory landscape with respect to ESG investing in the United States is evolving and any future rules or regulations may require the fund to change its investment process with respect to ESG integration.
| | ANNUAL REPORT | JOHN HANCOCK ESG Large Cap Core Fund | 27 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock ESG Large Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock ESG Large Cap Core Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the five years in the period ended October 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
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(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
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EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Trillium Asset Management, LLC (the Subadvisor), for John Hancock ESG Large Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
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Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
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| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the five-year period ended December 31, 2022 and underperformed for the one- and three-year periods. The Board also noted that the fund outperformed the peer group median for the three- and five-year periods ended December 31, 2022 and underperformed for the one-year period. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to its benchmark index for the five-year period and the peer group median for the three- and five-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds over the longer term.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed
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information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| (j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is |
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| | based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
| (4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
| 34 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds over the longer term; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 35 |
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| 36 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 37 |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| 38 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 39 |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| 40 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Trillium Asset Management, LLC
Portfolio Managers
Samantha D’Amore1
Elizabeth R. Levy, CFA
Mitali Prasad, CFA
Cheryl I. Smith, Ph.D., CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
1 Effective September 14, 2023, Samantha D’Amore was added as a portfolio manager of the fund.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 41 |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Environmental Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock ESG Large Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
Annual report
John Hancock
Fundamental Large Cap Core Fund
U.S. equity
October 31, 2023
A message to shareholders
Dear shareholder,
U.S. stocks posted gains for the 12 months ended October 31, 2023, although losses were experienced during the final three months of the period. Even though the U.S. Federal Reserve continued to raise interest rates, falling inflation gave investors confidence that the tightening cycle would likely recede at some point within the next year. Economic growth, while slowing, remained in positive territory even as interest rates rose. Together, these factors helped stocks overcome potential headwinds such as ongoing geopolitical instability, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Fundamental Large Cap Core Fund
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
U.S. stocks rallied amid a resilient economic backdrop
The fund’s benchmark, the S&P 500 Index, rose as inflation eased, the U.S. Federal Reserve slowed its interest-rate increases, and the U.S. economy remained resilient.
The fund outperformed its benchmark
Security selection in the consumer discretionary sector and stock picks in the underweighted consumer staples sector helped the fund outpace the index.
Security selection in communication services notably detracted
Investment choices in the communication services, as well as the healthcare and information technology sectors, detracted.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectuses. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectuses.
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 3 |
Management’s discussion of fund performance
How did the U.S. stock market perform during the 12 months ended October 31, 2023?
After bottoming in October 2022, the stock market rose as the economy remained resilient and inflation cooled. Better-than-expected corporate earnings and a slowdown in the U.S. Federal Reserve’s interest-rate increases also encouraged investors. These tailwinds outweighed the impact of high interest rates and a regional banking crisis last spring. Geopolitical uncertainty, highlighted by the conflicts in Ukraine and the Middle East, did little to stall the market’s rebound. Growth-oriented investments led the way, with the communication services and information technology sectors posting especially sizable gains. Conversely, the interest-rate sensitive real estate and utilities sectors declined.
Which sectors and stocks helped the fund outperform the benchmark?
Stock picks in the consumer discretionary and consumer staples sectors notably aided the fund’s relative performance. The biggest individual contributor was a non-index stake in Workday, Inc. The stock rallied sharply, as growing demand for the company’s cloud-based financial and human capital software drove better-than-expected quarterly earnings and led management to raise its outlook for 2024.
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Amazon.com, Inc. | 8.4 |
| Apple, Inc. | 7.5 |
| Alphabet, Inc., Class A | 5.8 |
| Microsoft Corp. | 4.4 |
| Salesforce, Inc. | 4.3 |
| KKR & Company, Inc. | 3.9 |
| Lennar Corp., A Shares | 3.7 |
| Cheniere Energy, Inc. | 3.7 |
| Anheuser-Busch InBev SA/NV, ADR | 3.6 |
| Workday, Inc., Class A | 3.3 |
| TOTAL | 48.6 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
In the consumer discretionary sector, sizable overweights in homebuilder Lennar Corp. and e-commerce giant Amazon.com, Inc. performed well. Lennar’s shares benefited as the U.S. housing shortage drove strong demand, despite higher interest rates. Amazon’s stock gained from profit margin growth and cash flow acceleration as the company grew into its expanded infrastructure.
Which sectors and stocks detracted from relative performance?
Security selection in the communication services sector notably hindered the fund’s relative result this period. Stock picks in healthcare and information technology also hampered performance.
Not owning stakes in AI hardware and software provider NVIDIA Corp. and Facebook parent Meta Platforms, Inc. were the fund’s biggest detractors. Other detractors included biopharmaceuticals company Moderna, Inc. Its stock sank as investors worried about waning demand for COVID-19 vaccines and overlooked the potential from new products in development. Another disappointment was wireless tower company Crown Castle, Inc. Its stock was pressured by high interest rates and concern that wireless providers would slow their spending on new capacity. Each of these positions was an overweight. Elsewhere, a non-index stake in liquefied natural gas company Chenière Energy, Inc. pulled back, as investors locked in gains fueled by elevated gas prices and the company’s long-term contracts.
Emory W. Sanders, Jr., CFA
The views expressed in this report are exclusively those of Emory W. Sanders, Jr., CFA, and Jonathan T. White, CFA, Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | 5-year | 10-year | 5-year | 10-year |
| Class A | 5.22 | 8.70 | 8.84 | 51.73 | 133.31 |
| Class C | 8.93 | 9.00 | 8.59 | 53.86 | 127.88 |
| Class I1 | 11.03 | 10.10 | 9.68 | 61.76 | 151.98 |
| Class R21 | 10.64 | 9.69 | 9.26 | 58.78 | 142.43 |
| Class R41 | 10.88 | 9.94 | 9.52 | 60.61 | 148.32 |
| Class R51 | 11.09 | 10.16 | 9.74 | 62.24 | 153.30 |
| Class R61 | 11.15 | 10.22 | 9.80 | 62.63 | 154.70 |
| Class NAV1,2 | 11.18 | 10.23 | 9.67 | 62.74 | 151.73 |
| Index † | 10.14 | 11.01 | 11.18 | 68.59 | 188.47 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R5, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class C | Class I | Class R2 | Class R4 | Class R5 | Class R6 | Class NAV |
| Gross (%) | 1.02 | 1.77 | 0.77 | 1.16 | 1.01 | 0.71 | 0.66 | 0.65 |
| Net (%) | 1.01 | 1.76 | 0.76 | 1.15 | 0.90 | 0.70 | 0.65 | 0.64 |
Please refer to the most recent prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the S&P 500 Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Fundamental Large Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the S&P 500 Index.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class C3 | 10-31-13 | 22,788 | 22,788 | 28,847 |
| Class I1 | 10-31-13 | 25,198 | 25,198 | 28,847 |
| Class R21 | 10-31-13 | 24,243 | 24,243 | 28,847 |
| Class R41 | 10-31-13 | 24,832 | 24,832 | 28,847 |
| Class R51 | 10-31-13 | 25,330 | 25,330 | 28,847 |
| Class R61 | 10-31-13 | 25,470 | 25,470 | 28,847 |
| Class NAV1,2 | 10-31-13 | 25,173 | 25,173 | 28,847 |
The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectuses. |
| 2 | Class NAV shares were first offered on 2-8-17. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
| 3 | The contingent deferred sales charge is not applicable. |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $ 995.60 | $5.18 | 1.03% |
| | Hypothetical example | 1,000.00 | 1,020.00 | 5.24 | 1.03% |
| Class C | Actual expenses/actual returns | 1,000.00 | 992.00 | 8.94 | 1.78% |
| | Hypothetical example | 1,000.00 | 1,016.20 | 9.05 | 1.78% |
| Class I | Actual expenses/actual returns | 1,000.00 | 997.00 | 3.93 | 0.78% |
| | Hypothetical example | 1,000.00 | 1,021.30 | 3.97 | 0.78% |
| Class R2 | Actual expenses/actual returns | 1,000.00 | 995.10 | 5.68 | 1.13% |
| | Hypothetical example | 1,000.00 | 1,019.50 | 5.75 | 1.13% |
| Class R4 | Actual expenses/actual returns | 1,000.00 | 996.30 | 4.58 | 0.91% |
| | Hypothetical example | 1,000.00 | 1,020.60 | 4.63 | 0.91% |
| Class R5 | Actual expenses/actual returns | 1,000.00 | 997.30 | 3.57 | 0.71% |
| | Hypothetical example | 1,000.00 | 1,021.60 | 3.62 | 0.71% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 997.50 | 3.32 | 0.66% |
| | Hypothetical example | 1,000.00 | 1,021.90 | 3.36 | 0.66% |
| Class NAV | Actual expenses/actual returns | 1,000.00 | 997.70 | 3.32 | 0.66% |
| | Hypothetical example | 1,000.00 | 1,021.90 | 3.36 | 0.66% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 98.5% | | | | | $4,571,926,686 |
| (Cost $2,788,421,377) | | | | | |
| Communication services 11.0% | | | 510,765,454 |
| Entertainment 5.2% | | | |
| Atlanta Braves Holdings, Inc., Series C (A) | | | 57,217 | 1,990,007 |
| Liberty Media Corp.-Liberty Formula One, Series C (A) | | | 1,939,495 | 125,465,932 |
| Liberty Media Corp.-Liberty Live, Series C (A) | | | 83,707 | 2,667,742 |
| The Walt Disney Company (A) | | | 728,338 | 59,425,097 |
| Warner Brothers Discovery, Inc. (A) | | | 5,305,130 | 52,732,992 |
| Interactive media and services 5.8% | | | |
| Alphabet, Inc., Class A (A) | | | 2,163,795 | 268,483,684 |
| Consumer discretionary 16.0% | | | 744,674,659 |
| Broadline retail 9.7% | | | |
| Amazon.com, Inc. (A) | | | 2,921,182 | 388,780,113 |
| eBay, Inc. | | | 1,512,935 | 59,352,440 |
| Hotels, restaurants and leisure 1.6% | | | |
| Airbnb, Inc., Class A (A) | | | 646,861 | 76,517,188 |
| Household durables 3.7% | | | |
| Lennar Corp., A Shares | | | 1,633,075 | 174,216,441 |
| Leisure products 1.0% | | | |
| Polaris, Inc. | | | 530,068 | 45,808,477 |
| Consumer staples 5.8% | | | 269,490,805 |
| Beverages 3.6% | | | |
| Anheuser-Busch InBev SA/NV, ADR | | | 2,908,467 | 165,404,518 |
| Consumer staples distribution and retail 2.2% | | | |
| Walmart, Inc. | | | 636,964 | 104,086,287 |
| Energy 3.7% | | | 173,616,500 |
| Oil, gas and consumable fuels 3.7% | | | |
| Cheniere Energy, Inc. | | | 1,043,243 | 173,616,500 |
| Financials 13.1% | | | 607,281,132 |
| Banks 0.6% | | | |
| Wells Fargo & Company | | | 685,690 | 27,269,891 |
| Capital markets 11.3% | | | |
| KKR & Company, Inc. | | | 3,268,975 | 181,101,215 |
| Morgan Stanley | | | 1,756,756 | 124,413,460 |
| Nasdaq, Inc. | | | 1,968,080 | 97,616,768 |
| State Street Corp. | | | 368,274 | 23,801,549 |
| The Goldman Sachs Group, Inc. | | | 325,982 | 98,971,395 |
| 10 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Financials (continued) | | | |
| Financial services 1.2% | | | |
| Visa, Inc., Class A | | | 230,144 | $54,106,854 |
| Health care 6.8% | | | 314,208,840 |
| Biotechnology 1.4% | | | |
| Moderna, Inc. (A) | | | 872,309 | 66,260,592 |
| Health care providers and services 2.7% | | | |
| Elevance Health, Inc. | | | 216,991 | 97,665,479 |
| UnitedHealth Group, Inc. | | | 46,144 | 24,712,881 |
| Life sciences tools and services 2.7% | | | |
| Danaher Corp. | | | 368,897 | 70,835,602 |
| Thermo Fisher Scientific, Inc. | | | 123,062 | 54,734,286 |
| Industrials 7.8% | | | 361,287,744 |
| Aerospace and defense 4.9% | | | |
| Airbus SE | | | 481,237 | 64,522,453 |
| General Dynamics Corp. | | | 238,091 | 57,453,739 |
| Lockheed Martin Corp. | | | 190,609 | 86,658,476 |
| RTX Corp. | | | 223,549 | 18,194,653 |
| Building products 0.2% | | | |
| Carrier Global Corp. | | | 220,640 | 10,515,702 |
| Commercial services and supplies 0.2% | | | |
| Veralto Corp. (A) | | | 122,965 | 8,484,585 |
| Ground transportation 1.7% | | | |
| Union Pacific Corp. | | | 383,391 | 79,595,806 |
| Machinery 0.2% | | | |
| Otis Worldwide Corp. | | | 110,332 | 8,518,734 |
| Trading companies and distributors 0.6% | | | |
| United Rentals, Inc. | | | 67,304 | 27,343,596 |
| Information technology 29.6% | | | 1,374,892,484 |
| Semiconductors and semiconductor equipment 7.0% | | | |
| Analog Devices, Inc. | | | 577,461 | 90,851,939 |
| Broadcom, Inc. | | | 63,577 | 53,491,780 |
| KLA Corp. | | | 217,556 | 102,186,053 |
| Taiwan Semiconductor Manufacturing Company, Ltd., ADR | | | 601,572 | 51,921,679 |
| Texas Instruments, Inc. | | | 182,832 | 25,963,972 |
| Software 15.1% | | | |
| Intuit, Inc. | | | 182,511 | 90,333,819 |
| Microsoft Corp. | | | 604,245 | 204,301,277 |
| Oracle Corp. | | | 548,861 | 56,752,227 |
| Salesforce, Inc. (A) | | | 1,001,447 | 201,120,601 |
| Workday, Inc., Class A (A) | | | 712,693 | 150,884,235 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 11 |
| | | | | Shares | Value |
| Information technology (continued) | | | |
| Technology hardware, storage and peripherals 7.5% | | | |
| Apple, Inc. | | | 2,032,470 | $347,084,902 |
| Materials 0.8% | | | 36,172,975 |
| Chemicals 0.8% | | | |
| LyondellBasell Industries NV, Class A | | | 400,853 | 36,172,975 |
| Real estate 3.9% | | | 179,536,093 |
| Specialized REITs 3.9% | | | |
| American Tower Corp. | | | 194,398 | 34,639,780 |
| Crown Castle, Inc. | | | 1,558,360 | 144,896,313 |
|
| | Yield* (%) | Maturity date | | Par value^ | Value |
| Short-term investments 1.5% | | | | | $67,000,000 |
| (Cost $67,000,000) | | | | | |
| U.S. Government Agency 0.5% | | | | | 21,000,000 |
| Federal Agricultural Mortgage Corp. Discount Note | 5.200 | 11-01-23 | | 21,000,000 | 21,000,000 |
| | | | | Par value^ | Value |
| Repurchase agreement 1.0% | | | | | 46,000,000 |
|
| Barclays Tri-Party Repurchase Agreement dated 10-31-23 at 5.290% to be repurchased at $46,006,759 on 11-1-23, collateralized by $47,603,500 U.S. Treasury Notes, 3.625% due 5-15-26 (valued at $46,926,931) | | | | 46,000,000 | 46,000,000 |
|
| Total investments (Cost $2,855,421,377) 100.0% | | | $4,638,926,686 |
| Other assets and liabilities, net 0.0% | | | | 1,031,792 |
| Total net assets 100.0% | | | | | $4,639,958,478 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| ^All par values are denominated in U.S. dollars unless otherwise indicated. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| * | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $2,867,647,901. Net unrealized appreciation aggregated to $1,771,278,785, of which $1,904,859,021 related to gross unrealized appreciation and $133,580,236 related to gross unrealized depreciation.
| 12 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $2,855,421,377) | $4,638,926,686 |
| Cash | 1,962,892 |
| Dividends and interest receivable | 2,096,044 |
| Receivable for fund shares sold | 3,001,736 |
| Other assets | 530,462 |
| Total assets | 4,646,517,820 |
| Liabilities | |
| Payable for fund shares repurchased | 2,767,311 |
| Payable to affiliates | |
| Investment management fees | 2,471,436 |
| Accounting and legal services fees | 345,897 |
| Transfer agent fees | 259,854 |
| Distribution and service fees | 416,878 |
| Trustees’ fees | 7,498 |
| Other liabilities and accrued expenses | 290,468 |
| Total liabilities | 6,559,342 |
| Net assets | $4,639,958,478 |
| Net assets consist of | |
| Paid-in capital | $2,544,072,363 |
| Total distributable earnings (loss) | 2,095,886,115 |
| Net assets | $4,639,958,478 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($1,745,537,164 ÷ 30,914,714 shares)1 | $56.46 |
| Class C ($43,885,300 ÷ 934,758 shares)1 | $46.95 |
| Class I ($665,667,135 ÷ 11,111,705 shares) | $59.91 |
| Class R2 ($5,011,517 ÷ 84,363 shares) | $59.40 |
| Class R4 ($1,187,080 ÷ 19,961 shares) | $59.47 |
| Class R5 ($477,997 ÷ 7,953 shares) | $60.10 |
| Class R6 ($494,598,843 ÷ 8,222,624 shares) | $60.15 |
| Class NAV ($1,683,593,442 ÷ 28,001,270 shares) | $60.13 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%) | $59.43 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 13 |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $58,285,207 |
| Interest | 1,910,633 |
| Less foreign taxes withheld | (152,311) |
| Total investment income | 60,043,529 |
| Expenses | |
| Investment management fees | 29,997,842 |
| Distribution and service fees | 4,974,067 |
| Accounting and legal services fees | 1,028,854 |
| Transfer agent fees | 3,004,739 |
| Trustees’ fees | 122,919 |
| Custodian fees | 566,755 |
| State registration fees | 155,640 |
| Printing and postage | 191,192 |
| Professional fees | 230,865 |
| Other | 158,821 |
| Total expenses | 40,431,694 |
| Less expense reductions | (353,382) |
| Net expenses | 40,078,312 |
| Net investment income | 19,965,217 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 332,029,451 |
| | 332,029,451 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 159,858,857 |
| | 159,858,857 |
| Net realized and unrealized gain | 491,888,308 |
| Increase in net assets from operations | $511,853,525 |
| 14 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $19,965,217 | $17,697,134 |
| Net realized gain | 332,029,451 | 292,129,689 |
| Change in net unrealized appreciation (depreciation) | 159,858,857 | (1,687,135,261) |
| Increase (decrease) in net assets resulting from operations | 511,853,525 | (1,377,308,438) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | (103,662,388) | (164,879,085) |
| Class C | (3,629,035) | (7,277,662) |
| Class I | (40,016,149) | (67,395,930) |
| Class R2 | (356,639) | (630,655) |
| Class R4 | (67,684) | (148,532) |
| Class R5 | (34,129) | (58,656) |
| Class R6 | (29,701,365) | (43,425,188) |
| Class NAV | (110,641,840) | (170,798,823) |
| Total distributions | (288,109,229) | (454,614,531) |
| From fund share transactions | (224,256,035) | 170,535,939 |
| Total decrease | (511,739) | (1,661,387,030) |
| Net assets | | |
| Beginning of year | 4,640,470,217 | 6,301,857,247 |
| End of year | $4,639,958,478 | $4,640,470,217 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 15 |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $54.43 | $76.05 | $50.84 | $46.52 | $46.66 |
| Net investment income (loss)1 | 0.14 | 0.08 | (0.03) | 0.20 | 0.24 |
| Net realized and unrealized gain (loss) on investments | 5.30 | (16.10) | 25.42 | 4.38 | 4.82 |
| Total from investment operations | 5.44 | (16.02) | 25.39 | 4.58 | 5.06 |
| Less distributions | | | | | |
| From net investment income | (0.12) | — | (0.18) | (0.26) | (0.13) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.41) | (5.60) | (0.18) | (0.26) | (5.20) |
| Net asset value, end of period | $56.46 | $54.43 | $76.05 | $50.84 | $46.52 |
| Total return (%)2,3 | 10.75 | (22.73) | 50.04 | 9.88 | 13.23 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $1,746 | $1,670 | $2,242 | $1,550 | $1,550 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.03 | 1.02 | 1.02 | 1.04 | 1.03 |
| Expenses including reductions | 1.02 | 1.01 | 1.01 | 1.03 | 1.02 |
| Net investment income (loss) | 0.24 | 0.12 | (0.04) | 0.40 | 0.56 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 4 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Does not reflect the effect of sales charges, if any. |
| 4 | Excludes in-kind transactions. |
| 16 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS C SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $46.04 | $65.65 | $44.08 | $40.42 | $41.41 |
| Net investment loss1 | (0.24) | (0.34) | (0.46) | (0.14) | (0.07) |
| Net realized and unrealized gain (loss) on investments | 4.44 | (13.67) | 22.03 | 3.80 | 4.15 |
| Total from investment operations | 4.20 | (14.01) | 21.57 | 3.66 | 4.08 |
| Less distributions | | | | | |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Net asset value, end of period | $46.95 | $46.04 | $65.65 | $44.08 | $40.42 |
| Total return (%)2,3 | 9.93 | (23.32) | 48.93 | 9.05 | 12.38 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $44 | $53 | $89 | $84 | $127 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.78 | 1.77 | 1.77 | 1.79 | 1.78 |
| Expenses including reductions | 1.78 | 1.76 | 1.76 | 1.78 | 1.77 |
| Net investment loss | (0.51) | (0.64) | (0.79) | (0.33) | (0.17) |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 4 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Does not reflect the effect of sales charges, if any. |
| 4 | Excludes in-kind transactions. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 17 |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $57.56 | $80.04 | $53.47 | $48.89 | $48.78 |
| Net investment income1 | 0.30 | 0.25 | 0.14 | 0.34 | 0.37 |
| Net realized and unrealized gain (loss) on investments | 5.61 | (17.01) | 26.73 | 4.61 | 5.07 |
| Total from investment operations | 5.91 | (16.76) | 26.87 | 4.95 | 5.44 |
| Less distributions | | | | | |
| From net investment income | (0.27) | (0.12) | (0.30) | (0.37) | (0.26) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.56) | (5.72) | (0.30) | (0.37) | (5.33) |
| Net asset value, end of period | $59.91 | $57.56 | $80.04 | $53.47 | $48.89 |
| Total return (%)2 | 11.03 | (22.55) | 50.42 | 10.16 | 13.51 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $666 | $672 | $941 | $625 | $819 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.78 | 0.77 | 0.77 | 0.79 | 0.79 |
| Expenses including reductions | 0.78 | 0.76 | 0.76 | 0.78 | 0.78 |
| Net investment income | 0.49 | 0.37 | 0.20 | 0.66 | 0.81 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 3 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes in-kind transactions. |
| 18 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R2 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $57.06 | $79.54 | $53.16 | $48.63 | $48.51 |
| Net investment income (loss)1 | 0.08 | — 2 | (0.12) | 0.13 | 0.19 |
| Net realized and unrealized gain (loss) on investments | 5.58 | (16.88) | 26.60 | 4.59 | 5.06 |
| Total from investment operations | 5.66 | (16.88) | 26.48 | 4.72 | 5.25 |
| Less distributions | | | | | |
| From net investment income | (0.03) | — | (0.10) | (0.19) | (0.06) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.32) | (5.60) | (0.10) | (0.19) | (5.13) |
| Net asset value, end of period | $59.40 | $57.06 | $79.54 | $53.16 | $48.63 |
| Total return (%)3 | 10.64 | (22.84) | 49.87 | 9.73 | 13.09 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $5 | $6 | $9 | $7 | $2 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.14 | 1.14 | 1.14 | 1.17 | 1.18 |
| Expenses including reductions | 1.13 | 1.13 | 1.13 | 1.17 | 1.17 |
| Net investment income (loss) | 0.14 | — 4 | (0.17) | 0.28 | 0.41 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 5 |
| 1 | Based on average daily shares outstanding. |
| 2 | Less than $0.005 per share. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Less than 0.005%. |
| 5 | Excludes in-kind transactions. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 19 |
| CLASS R4 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $57.16 | $79.54 | $53.15 | $48.61 | $48.51 |
| Net investment income1 | 0.21 | 0.15 | 0.04 | 0.26 | 0.36 |
| Net realized and unrealized gain (loss) on investments | 5.58 | (16.90) | 26.58 | 4.59 | 4.99 |
| Total from investment operations | 5.79 | (16.75) | 26.62 | 4.85 | 5.35 |
| Less distributions | | | | | |
| From net investment income | (0.19) | (0.03) | (0.23) | (0.31) | (0.18) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.48) | (5.63) | (0.23) | (0.31) | (5.25) |
| Net asset value, end of period | $59.47 | $57.16 | $79.54 | $53.15 | $48.61 |
| Total return (%)2 | 10.88 | (22.67) | 50.20 | 10.00 | 13.35 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $1 | $2 | $2 | $2 | $1 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.02 | 1.01 | 1.01 | 1.02 | 1.03 |
| Expenses including reductions | 0.91 | 0.90 | 0.90 | 0.92 | 0.92 |
| Net investment income | 0.35 | 0.23 | 0.06 | 0.51 | 0.77 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 3 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes in-kind transactions. |
| 20 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R5 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $57.74 | $80.26 | $53.61 | $49.02 | $48.89 |
| Net investment income1 | 0.33 | 0.29 | 0.19 | 0.36 | 0.40 |
| Net realized and unrealized gain (loss) on investments | 5.63 | (17.06) | 26.79 | 4.63 | 5.08 |
| Total from investment operations | 5.96 | (16.77) | 26.98 | 4.99 | 5.48 |
| Less distributions | | | | | |
| From net investment income | (0.31) | (0.15) | (0.33) | (0.40) | (0.28) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.60) | (5.75) | (0.33) | (0.40) | (5.35) |
| Net asset value, end of period | $60.10 | $57.74 | $80.26 | $53.61 | $49.02 |
| Total return (%)2 | 11.09 | (22.50) | 50.50 | 10.22 | 13.60 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $— 3 | $1 | $1 | $1 | $— 3 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.72 | 0.71 | 0.71 | 0.73 | 0.73 |
| Expenses including reductions | 0.71 | 0.70 | 0.70 | 0.72 | 0.72 |
| Net investment income | 0.54 | 0.43 | 0.26 | 0.71 | 0.86 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 4 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Less than $500,000. |
| 4 | Excludes in-kind transactions. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 21 |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $57.79 | $80.32 | $53.64 | $49.04 | $48.91 |
| Net investment income1 | 0.36 | 0.32 | 0.22 | 0.39 | 0.45 |
| Net realized and unrealized gain (loss) on investments | 5.63 | (17.07) | 26.81 | 4.63 | 5.05 |
| Total from investment operations | 5.99 | (16.75) | 27.03 | 5.02 | 5.50 |
| Less distributions | | | | | |
| From net investment income | (0.34) | (0.18) | (0.35) | (0.42) | (0.30) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.63) | (5.78) | (0.35) | (0.42) | (5.37) |
| Net asset value, end of period | $60.15 | $57.79 | $80.32 | $53.64 | $49.04 |
| Total return (%)2 | 11.15 | (22.46) | 50.59 | 10.28 | 13.63 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $495 | $478 | $593 | $386 | $397 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.67 | 0.66 | 0.66 | 0.68 | 0.68 |
| Expenses including reductions | 0.67 | 0.65 | 0.65 | 0.67 | 0.67 |
| Net investment income | 0.60 | 0.48 | 0.31 | 0.76 | 0.96 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 3 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes in-kind transactions. |
| 22 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS NAV SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $57.77 | $80.29 | $53.62 | $49.02 | $48.90 |
| Net investment income1 | 0.37 | 0.33 | 0.23 | 0.40 | 0.42 |
| Net realized and unrealized gain (loss) on investments | 5.63 | (17.06) | 26.80 | 4.63 | 5.07 |
| Total from investment operations | 6.00 | (16.73) | 27.03 | 5.03 | 5.49 |
| Less distributions | | | | | |
| From net investment income | (0.35) | (0.19) | (0.36) | (0.43) | (0.30) |
| From net realized gain | (3.29) | (5.60) | — | — | (5.07) |
| Total distributions | (3.64) | (5.79) | (0.36) | (0.43) | (5.37) |
| Net asset value, end of period | $60.13 | $57.77 | $80.29 | $53.62 | $49.02 |
| Total return (%)2 | 11.18 | (22.47) | 50.60 | 10.30 | 13.65 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $1,684 | $1,759 | $2,425 | $2,063 | $2,218 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.67 | 0.65 | 0.65 | 0.67 | 0.67 |
| Expenses including reductions | 0.66 | 0.65 | 0.64 | 0.66 | 0.66 |
| Net investment income | 0.61 | 0.49 | 0.33 | 0.78 | 0.91 |
| Portfolio turnover (%) | 19 | 26 | 16 | 19 | 29 3 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes in-kind transactions. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 23 |
Notes to financial statements
Note 1—Organization
John Hancock Fundamental Large Cap Core Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2, Class R4 and Class R5 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily
| 24 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | |
close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee, following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2023, by major security category or type:
| | Total
value at
10-31-23 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Communication services | $510,765,454 | $510,765,454 | — | — |
| Consumer discretionary | 744,674,659 | 744,674,659 | — | — |
| Consumer staples | 269,490,805 | 269,490,805 | — | — |
| Energy | 173,616,500 | 173,616,500 | — | — |
| Financials | 607,281,132 | 607,281,132 | — | — |
| Health care | 314,208,840 | 314,208,840 | — | — |
| Industrials | 361,287,744 | 296,765,291 | $64,522,453 | — |
| Information technology | 1,374,892,484 | 1,374,892,484 | — | — |
| Materials | 36,172,975 | 36,172,975 | — | — |
| Real estate | 179,536,093 | 179,536,093 | — | — |
| Short-term investments | 67,000,000 | — | 67,000,000 | — |
| Total investments in securities | $4,638,926,686 | $4,507,404,233 | $131,522,453 | — |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund’s custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund’s investments as part of the caption related to the repurchase agreement.
| | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 25 |
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay claims resulting from close-out of the transactions.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
| 26 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | |
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $21,092.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $20,091,146 | $8,455,480 |
| Long-term capital gains | 268,018,083 | 446,159,051 |
| Total | $288,109,229 | $454,614,531 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $27,170,447 of undistributed ordinary income and $297,436,883 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to treating a portion of the proceeds from redemptions as distributions for tax purposes and wash sale loss deferrals.
| | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 27 |
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a monthly management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.625% of the first $3 billion of the fund’s average daily net assets and (b) 0.600% of the fund’s average daily net assets in excess of $3 billion. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to waive and/or reimburse a portion of the operating expenses for Class C and Class I shares of the fund to the extent they exceed 1.82% and 0.78%, respectively, of the average daily net assets attributable to each class. These waivers and/or reimbursements exclude taxes, brokerage commissions, interest expense, acquired fund fees and expenses paid indirectly, short dividend expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, borrowing costs, and prime brokerage fees. The waivers and/or reimbursements will expire on February 28, 2024, unless renewed by mutual agreement of the fund and Advisor based upon determination that this is appropriate under the circumstances at the time.
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $129,136 |
| Class C | 3,647 |
| Class I | 49,842 |
| Class R2 | 424 |
| Class R4 | 89 |
| Class | Expense reduction |
| Class R5 | $37 |
| Class R6 | 36,743 |
| Class NAV | 132,232 |
| Total | $352,150 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.61% of the fund’s average daily net assets.
| 28 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | |
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
| Class | Rule 12b-1 Fee | Service fee |
| Class A | 0.25% | — |
| Class C | 1.00% | — |
| Class R2 | 0.25% | 0.25% |
| Class R4 | 0.25% | 0.10% |
| Class R5 | — | 0.05% |
The fund’s Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on February 28, 2024, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $1,232 for Class R4 shares for the year ended October 31, 2023.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $447,996 for the year ended October 31, 2023. Of this amount, $75,333 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $372,663 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, CDSCs received by the Distributor amounted to $3,652 and $3,947 for Class A and Class C shares, respectively.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
| | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 29 |
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $4,436,940 | $2,099,498 |
| Class C | 505,331 | 59,290 |
| Class I | — | 810,397 |
| Class R2 | 27,259 | 418 |
| Class R4 | 4,297 | 85 |
| Class R5 | 240 | 37 |
| Class R6 | — | 35,014 |
| Total | $4,974,067 | $3,004,739 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 2,589,942 | $146,564,449 | 2,664,726 | $170,231,936 |
| Distributions reinvested | 1,957,808 | 98,555,960 | 2,223,295 | 156,385,999 |
| Repurchased | (4,314,437) | (243,675,962) | (3,685,597) | (233,884,630) |
| Net increase | 233,313 | $1,444,447 | 1,202,424 | $92,733,305 |
| Class C shares | | | | |
| Sold | 105,588 | $4,979,273 | 119,754 | $6,625,848 |
| Distributions reinvested | 79,101 | 3,332,533 | 112,988 | 6,766,844 |
| Repurchased | (401,226) | (19,045,958) | (433,361) | (23,749,308) |
| Net decrease | (216,537) | $(10,734,152) | (200,619) | $(10,356,616) |
| Class I shares | | | | |
| Sold | 1,523,163 | $91,200,796 | 2,002,208 | $137,223,888 |
| Distributions reinvested | 628,519 | 33,500,087 | 759,500 | 56,377,658 |
| Repurchased | (2,715,072) | (161,586,984) | (2,848,077) | (189,978,865) |
| Net increase (decrease) | (563,390) | $(36,886,101) | (86,369) | $3,622,681 |
| Class R2 shares | | | | |
| Sold | 5,512 | $328,210 | 10,702 | $735,510 |
| Distributions reinvested | 6,485 | 343,793 | 8,043 | 593,632 |
| Repurchased | (36,875) | (2,207,563) | (24,999) | (1,646,110) |
| Net decrease | (24,878) | $(1,535,560) | (6,254) | $(316,968) |
| 30 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | |
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class R4 shares | | | | |
| Sold | 910 | $53,875 | 1,885 | $125,743 |
| Distributions reinvested | 1,278 | 67,684 | 2,013 | 148,532 |
| Repurchased | (9,837) | (586,275) | (2,596) | (174,129) |
| Net increase (decrease) | (7,649) | $(464,716) | 1,302 | $100,146 |
| Class R5 shares | | | | |
| Sold | 1,808 | $109,087 | 2,246 | $148,113 |
| Distributions reinvested | 639 | 34,129 | 788 | 58,656 |
| Repurchased | (4,183) | (247,595) | (3,445) | (212,152) |
| Net decrease | (1,736) | $(104,379) | (411) | $(5,383) |
| Class R6 shares | | | | |
| Sold | 1,564,684 | $94,621,365 | 2,156,329 | $148,755,312 |
| Distributions reinvested | 553,406 | 29,585,062 | 581,114 | 43,263,963 |
| Repurchased | (2,167,469) | (130,547,838) | (1,842,794) | (122,684,013) |
| Net increase (decrease) | (49,379) | $(6,341,411) | 894,649 | $69,335,262 |
| Class NAV shares | | | | |
| Sold | 417,282 | $24,819,116 | 1,160,598 | $70,535,654 |
| Distributions reinvested | 2,070,394 | 110,641,840 | 2,295,066 | 170,798,823 |
| Repurchased | (4,932,048) | (305,095,119) | (3,216,126) | (225,910,965) |
| Net increase (decrease) | (2,444,372) | $(169,634,163) | 239,538 | $15,423,512 |
| Total net increase (decrease) | (3,074,628) | $(224,256,035) | 2,044,260 | $170,535,939 |
Affiliates of the fund owned 2% and 100% of shares of Class R6 and Class NAV, respectively, on October 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $925,099,896 and $1,409,944,960, respectively, for the year ended October 31, 2023.
Note 7—Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
| | ANNUAL REPORT | JOHN HANCOCK Fundamental Large Cap Core Fund | 31 |
Note 8—Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2023, funds within the John Hancock group of funds complex held 34.1% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
| Fund | Affiliated Concentration |
| John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 8.2% |
| John Hancock Variable Insurance Trust Managed Volatility Growth Portfolio | 7.3% |
| 32 | JOHN HANCOCK Fundamental Large Cap Core Fund | ANNUAL REPORT | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Fundamental Large Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Fundamental Large Cap Core Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the five years in the period ended October 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 33 |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund paid $289,773,553 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| 34 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Manulife Investment Management (US) LLC (the Subadvisor) for John Hancock Fundamental Large Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
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Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
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| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index and peer group median for the one-, three-, five- and ten-year periods ended December 31, 2022. The Board took into account management’s discussion of the factors that contributed to the fund’s underperformance relative to the benchmark index and peer group median for the one-, three-, five- and ten-year periods including the impact of past and current market conditions on the fund’s strategy and management’s plans for the fund. The Board concluded that the fund’s performance is being monitored and reasonably addressed, where appropriate.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board also noted that the fund’s distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for a share class of the fund. The Board noted that the fund has a voluntary fee
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 37 |
waiver and/or expense reimbursement, which reduces certain expenses of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
| (i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
| (k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| 38 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
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Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| 40 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 41 |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| 42 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 43 |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| 44 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Manulife Investment Management (US) LLC
Portfolio Managers
Emory W. (Sandy) Sanders, Jr., CFA
Jonathan T. White, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 45 |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Environmental Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Fundamental Large Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
Annual report
John Hancock
Global Environmental Opportunities Fund
International equity
October 31, 2023
A message to shareholders
Dear shareholders,
Stocks performed well for most of the 12 months ended October 31, 2023, on hopes that falling inflation would allow world central banks to wrap up their long series of interest-rate increases. Economic growth and corporate earnings came in above expectations. Mega-cap U.S. technology-related stocks were a key driver of returns for the broad global indexes, as were the European markets.
The environment grew less favorable during the last three months of the period, as investors became concerned that inflation was set to reaccelerate and central banks would be compelled to keep interest rates higher for longer. The markets were further pressured by the combination of rising oil prices, signs of slowing global growth, and increasing geopolitical tensions, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Global Environmental Opportunities Fund
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks growth through capital appreciation by investing primarily in Environmental Companies.1
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The MSCI All Country World Index (ACWI) tracks the performance of publicly traded large- and mid-cap stocks of companies in both developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
1The manager defines Environmental Companies as: (1) Companies that operate within the Safe Operating Space of the Planetary Boundaries, and (2) Companies, all or a portion of whose business activities reduce stress in at least one of the boundaries in the PB framework. For further information on the fund’s investment objective and strategy, see the fund’s prospectus. Unless otherwise indicated, defined terms have the same meaning as set forth in the fund’s prospectus.
| 2 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Restrictive economic conditions slowed global equity rally
Stocks enjoyed strong gains in the first half before slowing economic growth and a higher for longer interest rate regime led to selling pressure in the last three months of the period.
The fund’s stock selection weighed on relative outperformance
The fund had a positive absolute return but underperformed the MSCI All Country World Index due primarily to stock selection in the information technology and healthcare sectors.
Strength in energy efficiency was offset by weakness in pollution control, renewables
Across environmental themes, relative detractors in pollution control and renewables were offset by positive allocation to stocks supporting the energy efficiency and dematerialized economy themes.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectus. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectus.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 3 |
Management’s discussion of fund performance
How did the global equity markets perform during the 12 months ended October 31, 2023?
Global stocks delivered mixed performance during the period. In the first quarter of 2023, markets remained turbulent with the collapse of Silicon Valley Bank and instability at Credit Suisse. Emergency measures were taken, allowing equities to end the quarter positively, with financials and real estate underperforming. The second quarter saw strong gains in equities, with the fund’s benchmark, the MSCI ACWI, reaching a 14-month high. Investors grew confident in central banks’ efforts to control inflation with industrials and information technology companies being the biggest gainers, led by U.S. mega cap stocks. In the third quarter, however, equities declined due to lackluster economic data and persistent inflationary pressures. Bond yields rose, especially in the United States, causing concerns about budget deficits. Lackluster economic data raised concerns about the global economic recovery, and inflationary pressures persisted. Selling pressure continued through the end of the period due to rising geopolitical tensions, higher volatility, and mixed earnings news that weighed on investor confidence.
How did the fund respond to these market conditions?
The fund posted a positive absolute return but underperformed its benchmark. Underperformance was the result of stock selection while sector allocation proved beneficial. Stock selection in the information technology, healthcare, utilities and
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Republic Services, Inc. | 4.7 |
| Synopsys, Inc. | 4.2 |
| Cadence Design Systems, Inc. | 3.8 |
| Waste Management, Inc. | 3.7 |
| Eaton Corp. PLC | 3.7 |
| Waste Connections, Inc. | 3.6 |
| American Water Works Company, Inc. | 3.4 |
| Tetra Tech, Inc. | 3.4 |
| ANSYS, Inc. | 3.3 |
| WSP Global, Inc. | 3.1 |
| TOTAL | 36.9 |
| Cash and cash equivalents are not included. |
TOP 10 COUNTRIES
AS OF 10/31/2023 (% of net assets) |
| United States | 59.2 |
| Canada | 8.2 |
| France | 7.0 |
| Ireland | 4.9 |
| Germany | 4.1 |
| Japan | 3.6 |
| Switzerland | 3.6 |
| Finland | 1.7 |
| Netherlands | 1.5 |
| Sweden | 1.2 |
| TOTAL | 95.0 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
consumer discretionary sectors, and a lack of exposure to the communication services sector, detracted the most from results. On the positive side, an overweight to information technology and stock selection in the real estate sector were the primary contributors to results.
When looking at individual names and environmental themes, energy efficiency performed relatively well with contributions from semiconductor equipment names Applied Materials, Inc. and Tokyo Electron, Ltd. as well as electrical products manufacturer Eaton Corp. PLC. In dematerialized economy, electronic design automation software makers Synopsys, Inc. and Cadence Design Systems, Inc. were leading contributors to performance.
On the negative side, pollution control detracted as a continued subdued investment backdrop in pharma and biotech reduced earnings expectations for tools and diagnostics providers Agilent Technologies, Inc. and Thermo Fisher Scientific, Inc. In renewables, concerns over an incrementally negative market outlook for the residential solar industry due to higher financing costs weighed on SolarEdge Technologies, Inc. while utility Orsted was hurt by disappointing developments in its U.S. offshore wind business.
Can you tell us about an addition to the portfolio management team?
Effective March 1, 2023, Katie Self, Ph.D., was added to the management team.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | Since
inception
(7-21-21) | Since
inception
(7-21-21) |
| Class A | 1.92 | -8.91 | -19.18 |
| Class C | 5.49 | -7.50 | -16.30 |
| Class I1 | 7.55 | -6.63 | -14.50 |
| Class R61 | 7.64 | -6.55 | -14.32 |
| Index† | 10.50 | -3.23 | -7.22 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class C | Class I | Class R6 |
| Gross (%) | 4.08 | 4.83 | 3.83 | 3.72 |
| Net (%) | 1.21 | 1.96 | 0.96 | 0.85 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the MSCI ACWI.
See the following page for footnotes.
| 6 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Global Environmental Opportunities Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI ACWI.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class C2 | 7-21-21 | 8,370 | 8,370 | 9,278 |
| Class I1 | 7-21-21 | 8,550 | 8,550 | 9,278 |
| Class R61 | 7-21-21 | 8,568 | 8,568 | 9,278 |
The MSCI All Country World Index (ACWI) tracks the performance of publicly traded large- and mid-cap stocks of companies in both developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectus. |
| 2 | The contingent deferred sales charge is not applicable. |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $947.70 | $5.94 | 1.21% |
| | Hypothetical example | 1,000.00 | 1,019.10 | 6.16 | 1.21% |
| Class C | Actual expenses/actual returns | 1,000.00 | 944.70 | 9.61 | 1.96% |
| | Hypothetical example | 1,000.00 | 1,015.30 | 9.96 | 1.96% |
| Class I | Actual expenses/actual returns | 1,000.00 | 948.90 | 4.72 | 0.96% |
| | Hypothetical example | 1,000.00 | 1,020.40 | 4.89 | 0.96% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 949.00 | 4.13 | 0.84% |
| | Hypothetical example | 1,000.00 | 1,021.00 | 4.28 | 0.84% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 96.0% | | | | | $54,336,652 |
| (Cost $56,613,763) | | | | | |
| Canada 8.2% | | | | | 4,619,970 |
| Waste Connections, Inc. | | 15,779 | 2,043,381 |
| West Fraser Timber Company, Ltd. | | 12,344 | 833,081 |
| WSP Global, Inc. | | 13,322 | 1,743,508 |
| Finland 1.7% | | | | | 969,236 |
| Stora Enso OYJ, R Shares | | 80,646 | 969,236 |
| France 7.0% | | | | | 3,955,584 |
| Dassault Systemes SE | | 25,979 | 1,070,163 |
| Legrand SA | | 14,552 | 1,258,841 |
| Schneider Electric SE | | 10,572 | 1,626,580 |
| Germany 4.1% | | | | | 2,322,383 |
| Infineon Technologies AG | | 36,241 | 1,058,608 |
| Symrise AG | | 12,367 | 1,263,775 |
| Ireland 4.9% | | | | | 2,768,296 |
| Aptiv PLC (A) | | 6,252 | 545,174 |
| Smurfit Kappa Group PLC | | 24,811 | 808,738 |
| Trane Technologies PLC | | 7,432 | 1,414,384 |
| Italy 1.0% | | | | | 563,941 |
| Terna - Rete Elettrica Nazionale | | 73,650 | 563,941 |
| Japan 3.6% | | | | | 2,069,866 |
| Keyence Corp. | | 2,600 | 1,006,509 |
| Shimano, Inc. | | 3,900 | 561,234 |
| Tokyo Electron, Ltd. | | 3,800 | 502,123 |
| Netherlands 1.5% | | | | | 851,187 |
| ASML Holding NV | | 1,416 | 851,187 |
| Sweden 1.2% | | | | | 668,156 |
| Hexagon AB, B Shares | | 81,986 | 668,156 |
| Switzerland 3.6% | | | | | 2,031,605 |
| Givaudan SA | | 374 | 1,244,868 |
| SIG Group AG (A) | | 35,685 | 786,737 |
| United States 59.2% | | | | | 33,516,428 |
| AECOM | | 21,914 | 1,677,517 |
| Agilent Technologies, Inc. | | 16,395 | 1,694,751 |
| American Water Works Company, Inc. | | 16,386 | 1,927,813 |
| ANSYS, Inc. (A) | | 6,670 | 1,855,994 |
| Applied Materials, Inc. | | 7,511 | 994,081 |
| 10 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| United States (continued) | | | | | |
| Autodesk, Inc. (A) | | 5,251 | $1,037,755 |
| Cadence Design Systems, Inc. (A) | | 9,037 | 2,167,524 |
| Carrier Global Corp. | | 22,812 | 1,087,220 |
| Eaton Corp. PLC | | 9,966 | 2,072,031 |
| Equinix, Inc. | | 1,393 | 1,016,389 |
| Johnson Controls International PLC | | 12,812 | 628,044 |
| ON Semiconductor Corp. (A) | | 13,231 | 828,790 |
| PTC, Inc. (A) | | 12,330 | 1,731,379 |
| Republic Services, Inc. | | 18,013 | 2,674,748 |
| Synopsys, Inc. (A) | | 5,131 | 2,408,697 |
| Tetra Tech, Inc. | | 12,717 | 1,919,122 |
| Thermo Fisher Scientific, Inc. | | 3,387 | 1,506,436 |
| Veralto Corp. (A) | | 9,592 | 661,848 |
| Waste Management, Inc. | | 12,923 | 2,123,637 |
| Westrock Company | | 23,095 | 829,803 |
| Weyerhaeuser Company | | 33,945 | 973,882 |
| Xylem, Inc. | | 18,163 | 1,698,967 |
|
| Total investments (Cost $56,613,763) 96.0% | | | $54,336,652 |
| Other assets and liabilities, net 4.0% | | | 2,268,809 |
| Total net assets 100.0% | | | | | $56,605,461 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| (A) | Non-income producing security. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $56,969,833. Net unrealized depreciation aggregated to $2,633,181, of which $1,297,333 related to gross unrealized appreciation and $3,930,514 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 11 |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $56,613,763) | $54,336,652 |
| Cash | 2,299,774 |
| Dividends and interest receivable | 24,281 |
| Receivable for fund shares sold | 52 |
| Receivable for investments sold | 145,374 |
| Other assets | 36,767 |
| Total assets | 56,842,900 |
| Liabilities | |
| Payable for investments purchased | 168,212 |
| Payable to affiliates | |
| Investment management fees | 1,953 |
| Accounting and legal services fees | 4,734 |
| Transfer agent fees | 312 |
| Trustees’ fees | 40 |
| Other liabilities and accrued expenses | 62,188 |
| Total liabilities | 237,439 |
| Net assets | $56,605,461 |
| Net assets consist of | |
| Paid-in capital | $60,660,487 |
| Total distributable earnings (loss) | (4,055,026) |
| Net assets | $56,605,461 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($381,732 ÷ 44,851 shares) | $8.51 |
| Class C ($41,926 ÷ 5,010 shares) | $8.37 |
| Class I ($269,207 ÷ 31,483 shares) | $8.55 |
| Class R6 ($55,912,596 ÷ 6,529,141 shares) | $8.56 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%) | $8.96 |
| 12 | JOHN HANCOCK Global Environmental Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $356,987 |
| Interest | 33,504 |
| Less foreign taxes withheld | (20,516) |
| Total investment income | 369,975 |
| Expenses | |
| Investment management fees | 276,913 |
| Distribution and service fees | 1,097 |
| Accounting and legal services fees | 8,471 |
| Transfer agent fees | 2,690 |
| Trustees’ fees | 660 |
| Custodian fees | 29,293 |
| State registration fees | 72,642 |
| Printing and postage | 16,270 |
| Professional fees | 54,319 |
| Other | 18,351 |
| Total expenses | 480,706 |
| Less expense reductions | (192,765) |
| Net expenses | 287,941 |
| Net investment income | 82,034 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | (783,959) |
| | (783,959) |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 63,686 |
| | 63,686 |
| Net realized and unrealized loss | (720,273) |
| Decrease in net assets from operations | $(638,239) |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Environmental Opportunities Fund | 13 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $82,034 | $10,893 |
| Net realized loss | (783,959) | (1,019,269) |
| Change in net unrealized appreciation (depreciation) | 63,686 | (3,070,243) |
| Decrease in net assets resulting from operations | (638,239) | (4,078,619) |
| Distributions to shareholders | | |
| From earnings | | |
| Class I | (1) | — |
| Class R6 | (25,725) | — |
| Total distributions | (25,726) | — |
| From fund share transactions | 32,382,139 | 18,203,453 |
| Total increase | 31,718,174 | 14,124,834 |
| Net assets | | |
| Beginning of year | 24,887,287 | 10,762,453 |
| End of year | $56,605,461 | $24,887,287 |
| 14 | JOHN HANCOCK Global Environmental Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-211 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $7.94 | $10.67 | $10.00 |
| Net investment loss2 | (0.01) | (0.04) | (0.02) |
| Net realized and unrealized gain (loss) on investments | 0.583 | (2.69) | 0.69 |
| Total from investment operations | 0.57 | (2.73) | 0.67 |
| Net asset value, end of period | $8.51 | $7.94 | $10.67 |
| Total return (%)4,5 | 7.31 | (25.68) | 6.706 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $—7 | $—7 | $—7 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 1.78 | 4.08 | 3.998 |
| Expenses including reductions | 1.21 | 1.21 | 1.228 |
| Net investment loss | (0.08) | (0.43) | (0.73)9 |
| Portfolio turnover (%) | 40 | 38 | 7 |
| 1 | Period from 7-21-21 (commencement of operations) to 10-31-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Does not reflect the effect of sales charges, if any. |
| 6 | Not annualized. |
| 7 | Less than $500,000. |
| 8 | Annualized. Certain expenses are presented unannualized. |
| 9 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Environmental Opportunities Fund | 15 |
| CLASS C SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-211 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $7.86 | $10.65 | $10.00 |
| Net investment loss2 | (0.07) | (0.08) | (0.04) |
| Net realized and unrealized gain (loss) on investments | 0.583 | (2.71) | 0.69 |
| Total from investment operations | 0.51 | (2.79) | 0.65 |
| Net asset value, end of period | $8.37 | $7.86 | $10.65 |
| Total return (%)4,5 | 6.49 | (26.20) | 6.506 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $—7 | $—7 | $—7 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 2.53 | 4.83 | 4.748 |
| Expenses including reductions | 1.96 | 1.96 | 1.978 |
| Net investment loss | (0.81) | (0.90) | (1.52)9 |
| Portfolio turnover (%) | 40 | 38 | 7 |
| 1 | Period from 7-21-21 (commencement of operations) to 10-31-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Does not reflect the effect of sales charges, if any. |
| 6 | Not annualized. |
| 7 | Less than $500,000. |
| 8 | Annualized. Certain expenses are presented unannualized. |
| 9 | Annualized. |
| 16 | JOHN HANCOCK Global Environmental Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-211 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $7.95 | $10.68 | $10.00 |
| Net investment loss2 | —3 | —3 | (0.01) |
| Net realized and unrealized gain (loss) on investments | 0.604 | (2.73) | 0.69 |
| Total from investment operations | 0.60 | (2.73) | 0.68 |
| Less distributions | | | |
| From net investment income | —3 | — | — |
| Net asset value, end of period | $8.55 | $7.95 | $10.68 |
| Total return (%)5 | 7.55 | (25.56) | 6.806 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $—7 | $—7 | $—7 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 1.53 | 3.83 | 3.748 |
| Expenses including reductions | 0.96 | 0.96 | 0.978 |
| Net investment income (loss) | 0.04 | 0.04 | (0.48)9 |
| Portfolio turnover (%) | 40 | 38 | 7 |
| 1 | Period from 7-21-21 (commencement of operations) to 10-31-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | Less than $0.005 per share. |
| 4 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
| 5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 6 | Not annualized. |
| 7 | Less than $500,000. |
| 8 | Annualized. Certain expenses are presented unannualized. |
| 9 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Environmental Opportunities Fund | 17 |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-211 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $7.96 | $10.68 | $10.00 |
| Net investment income (loss)2 | 0.02 | 0.01 | (0.01) |
| Net realized and unrealized gain (loss) on investments | 0.593 | (2.73) | 0.69 |
| Total from investment operations | 0.61 | (2.72) | 0.68 |
| Less distributions | | | |
| From net investment income | (0.01) | — | — |
| Net asset value, end of period | $8.56 | $7.96 | $10.68 |
| Total return (%)4 | 7.64 | (25.47) | 6.805 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $56 | $25 | $11 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 1.42 | 3.72 | 3.646 |
| Expenses including reductions | 0.85 | 0.85 | 0.866 |
| Net investment income (loss) | 0.25 | 0.09 | (0.37)7 |
| Portfolio turnover (%) | 40 | 38 | 7 |
| 1 | Period from 7-21-21 (commencement of operations) to 10-31-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Not annualized. |
| 6 | Annualized. Certain expenses are presented unannualized. |
| 7 | Annualized. |
| 18 | JOHN HANCOCK Global Environmental Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock Global Environmental Opportunities Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek growth through capital appreciation by investing primarily in Environmental Companies.The manager defines Environmental Companies as: (1) Companies that operate within the Safe Operating Space of the Planetary Boundaries (PB), and (2) Companies, all or a portion of whose business activities reduce stress in at least one of the boundaries in the PB framework. For further information on the fund’s investment objective and strategy, see the fund’s prospectus. Unless otherwise indicated, defined terms have the same meaning as set forth in the fund’s prospectus.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities
| | ANNUAL REPORT | JOHN HANCOCK Global Environmental Opportunities Fund | 19 |
between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee, following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2023, by major security category or type:
| | Total
value at
10-31-23 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Canada | $4,619,970 | $4,619,970 | — | — |
| Finland | 969,236 | — | $969,236 | — |
| France | 3,955,584 | — | 3,955,584 | — |
| Germany | 2,322,383 | — | 2,322,383 | — |
| Ireland | 2,768,296 | 1,959,558 | 808,738 | — |
| Italy | 563,941 | — | 563,941 | — |
| Japan | 2,069,866 | — | 2,069,866 | — |
| Netherlands | 851,187 | — | 851,187 | — |
| Sweden | 668,156 | — | 668,156 | — |
| Switzerland | 2,031,605 | — | 2,031,605 | — |
| United States | 33,516,428 | 33,516,428 | — | — |
| Total investments in securities | $54,336,652 | $40,095,956 | $14,240,696 | — |
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on
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ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $3,766.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
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Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2023, the fund has a short-term capital loss carryforward of $843,091 and a long-term capital loss carryforward of $657,057 available to offset future net realized capital gains. These carryforwards do not expire.
Due to certain Internal Revenue Code rules, utilization of capital loss carryforwards may be limited in future years.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $25,726 | — |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $78,407 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.840% of the first $250 million of the fund’s aggregate net assets; (b) 0.815% of the next $250 million of the fund’s aggregate net assets; (c) 0.790% of the next $500 million of the fund’s aggregate net assets; (d) 0.750% of the next $1 billion
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of the fund’s aggregate net assets; and (e) 0.730% of the fund’s aggregate net assets in excess of $2 billion. When aggregate net assets exceed $1 billion, but are less than or equal to $2 billion, the advisory fee rate is 0.750% on all net assets of the fund. When aggregate net assets exceed $2 billion, the advisory fee rate is 0.730% on all net assets of the fund. Aggregate net assets include the net assets of the fund, John Hancock Global Thematic Opportunities Fund (a series of John Hancock Investment Trust), Manulife Global Thematic Opportunities Fund (a Canadian mutual fund trust), and Manulife Global Thematic Opportunities Class (a class of mutual fund shares of Manulife Investment Exchange Funds Corp.)(Canadian Class), excluding the Canadian Class invested in the Manulife Global Thematic Opportunities Fund. The Advisor has a subadvisory agreement with Pictet Asset Management SA. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.84% of average daily net assets of the fund. For purposes of this agreement, “expenses of the fund” means all fund expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short dividend expense. This agreement expires on February 28, 2024, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $1,568 |
| Class C | 286 |
| Class I | 678 |
| Class | Expense reduction |
| Class R6 | $190,233 |
| Total | $192,765 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.25% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
| | ANNUAL REPORT | JOHN HANCOCK Global Environmental Opportunities Fund | 23 |
| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
| Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $3,804 for the year ended October 31, 2023. Of this amount, $608 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $3,196 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, there were no CDSCs received by the Distributor for Class A or Class C shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $651 | $306 |
| Class C | 446 | 52 |
| Class I | — | 149 |
| Class R6 | — | 2,183 |
| Total | $1,097 | $2,690 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
| 24 | JOHN HANCOCK Global Environmental Opportunities Fund | ANNUAL REPORT | |
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 31,239 | $281,218 | 57,826 | $590,298 |
| Repurchased | (9,867) | (86,772) | (39,834) | (387,381) |
| Net increase | 21,372 | $194,446 | 17,992 | $202,917 |
| Class C shares | | | | |
| Sold | — | — | 184 | $2,001 |
| Repurchased | — | — | (7,216) | (59,558) |
| Net decrease | — | — | (7,032) | $(57,557) |
| Class I shares | | | | |
| Sold | 26,479 | $249,970 | 6,970 | $57,989 |
| Distributions reinvested | — | 1 | — | — |
| Repurchased | (6,966) | (62,277) | — | — |
| Net increase | 19,513 | $187,694 | 6,970 | $57,989 |
| Class R6 shares | | | | |
| Sold | 3,444,564 | $31,999,999 | 2,099,578 | $18,000,104 |
| Net increase | 3,444,564 | $31,999,999 | 2,099,578 | $18,000,104 |
| Total net increase | 3,485,449 | $32,382,139 | 2,117,508 | $18,203,453 |
Affiliates of the fund owned 11%, 100%, 16% and 81% of shares of Class A, Class C, Class I and Class R6, respectively, on October 31, 2023. As of October 31, 2023, one shareholder held approximately 19% of the fund. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $44,892,621 and $13,535,701, respectively, for the year ended October 31, 2023.
Note 7—Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
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Note 8—Environmentally focused and environmental, social, and governance (ESG) investing risks
The fund’s environmental criteria limit the available investments compared to funds with no such criteria. The fund’s incorporation of environmental criteria may affect the fund’s exposure to certain sectors and/or types of investments, and under certain economic conditions, this could cause the fund to underperform funds that invest in a broader array of investments depending on whether such sectors or investments are in or out of favor in the market. The data provided by third parties may be incomplete, inaccurate or unavailable, which could cause the manager to incorrectly assess environmental data related to a particular company.
Incorporating ESG criteria and investing primarily in instruments that have certain ESG characteristics, as determined by the manager, carries the risk that the fund may perform differently, including underperforming, funds that do not utilize an ESG investment strategy, or funds that utilize different ESG criteria. Although the manager has established its own process for evaluation of ESG factors, successful application of the fund’s sustainable investment strategy will depend on the manager’s skill in researching, identifying and analyzing material ESG issues, as well as on the availability of relevant data. ESG factors may be evaluated differently by different managers, and may not carry the same meaning to all investors and managers. The regulatory landscape with respect to ESG investing in the United States is evolving and any future rules or regulations may require the fund to change its investment process with respect to ESG integration.
| 26 | JOHN HANCOCK Global Environmental Opportunities Fund | ANNUAL REPORT | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Global Environmental Opportunities Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Global Environmental Opportunities Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the two years in the period ended October 31, 2023 and for the period July 21, 2021 (commencement of operations) through October 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the two years in the period ended October 31, 2023 and for the period July 21, 2021 (commencement of operations) through October 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
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(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| 28 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Pictet Asset Management SA (the Subadvisor), for John Hancock Global Environmental Opportunities Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
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Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
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| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index for the one-year period ended December 31, 2022 and for the period from July 21, 2021 through December 31, 2022. The Board also noted that the fund outperformed the peer group median for the one-year period ended December 31, 2022 and for the period from July 21, 2021 through December 31, 2022.The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the peer group median for the one-year period and the period from July 21, 2021 through December 31, 2022. The Board also noted the fund’s relatively limited performance history. The Board concluded that the fund’s performance has outperformed the historical performance of comparable funds.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are equal to the peer group median and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 31 |
fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| (j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or |
| 32 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
| | otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
| (4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 33 |
orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund has generally outperformed the historical performance of comparable funds; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| 34 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 35 |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| 36 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 37 |
| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| 38 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | 39 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Pictet Asset Management SA
Portfolio Managers
Luciano Diana
Yi Du
Gabriel Micheli, CFA
Katie Self
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| 40 | JOHN HANCOCK GLOBAL ENVIRONMENTAL OPPORTUNITIES FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
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Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
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New Opportunities
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INTERNATIONAL EQUITY FUNDS
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Emerging Markets
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Emerging Markets Debt
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Income
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Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
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John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
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We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Global Environmental Opportunities Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
Annual report
John Hancock
Global Thematic Opportunities Fund
International equity
October 31, 2023
A message to shareholders
Dear shareholders,
Stocks performed well for most of the 12 months ended October 31, 2023, on hopes that falling inflation would allow world central banks to wrap up their long series of interest-rate increases. Economic growth and corporate earnings came in above expectations. Mega-cap U.S. technology-related stocks were a key driver of returns for the broad global indexes, as were the European markets.
The environment grew less favorable during the last three months of the period, as investors became concerned that inflation was set to reaccelerate and central banks would be compelled to keep interest rates higher for longer. The markets were further pressured by the combination of rising oil prices, signs of slowing global growth, and increasing geopolitical tensions, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Global Thematic Opportunities Fund
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks growth through capital appreciation by investing mainly in equities of companies that may benefit from global long-term market themes.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The MSCI All Country World Index (ACWI) tracks the performance of publicly traded large- and mid-cap stocks of companies in both developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Global equities delivered mixed performance
Growth stocks were the strongest performers in a volatile period where lackluster economic data raised concerns about the global economic recovery and inflationary pressures persisted.
The fund’s stock selection detracted from relative performance
The fund had a positive absolute return but underperformed the MSCI ACWI, driven by stock selection in the industrials and financials sectors.
Allocations to certain sectors helped performance
An overweight allocation to information technology, an underweight to consumer staples, and stock selection in healthcare aided performance.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectuses. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectuses.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 3 |
Management’s discussion of fund performance
What factors affected global equity markets during the 12 months ended October 31, 2023?
Global stocks delivered mixed performance. In the first quarter of 2023, markets remained turbulent with the collapse of Silicon Valley Bank and instability at Credit Suisse. Emergency measures were taken, allowing equities to end the quarter positively, with financials and real estate underperforming. The second quarter saw strong gains in equities, with the fund’s benchmark, the MSCI ACWI, reaching a 14-month high. Investors grew confident in central banks’ efforts to control inflation with industrials and information technology companies being the biggest gainers, led by U.S. mega cap stocks. In the third quarter, however, equities declined due to lackluster economic data and persistent inflationary pressures. Bond yields rose, especially in the United States, causing concerns about budget deficits. Lackluster economic data raised concerns about the global economic recovery, and inflationary pressures persisted. Selling pressure continued through the end of the period due to rising geopolitical tensions, higher volatility, and mixed earnings news that weighed on investor confidence.
How did the fund respond to these market conditions?
The fund posted a positive absolute return but underperformed its benchmark. Stock selection had a negative impact, while sector allocation aided performance. Stock selection in the industrials, financials, and utilities sectors and an overweight
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Visa, Inc., Class A | 4.7 |
| UnitedHealth Group, Inc. | 4.6 |
| Microsoft Corp. | 3.6 |
| Thermo Fisher Scientific, Inc. | 3.3 |
| Novo Nordisk A/S, Class B | 3.2 |
| Republic Services, Inc. | 3.1 |
| Roper Technologies, Inc. | 3.1 |
| Alphabet, Inc., Class A | 3.1 |
| NextEra Energy, Inc. | 3.0 |
| KLA Corp. | 3.0 |
| TOTAL | 34.7 |
| Cash and cash equivalents are not included. |
TOP 10 COUNTRIES
AS OF 10/31/2023 (% of net assets) |
| United States | 61.8 |
| France | 8.6 |
| Netherlands | 5.0 |
| Switzerland | 4.8 |
| Denmark | 3.2 |
| Ireland | 2.5 |
| Germany | 2.2 |
| United Kingdom | 2.1 |
| Taiwan | 2.0 |
| Canada | 1.6 |
| TOTAL | 93.8 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
to the healthcare sector detracted from relative returns. An overweight to the information technology sector, underweights to the consumer staples and financials sectors, a lack of exposure to the energy sector, and stock selection in the healthcare and consumer discretionary sectors contributed to results.
On the negative side, some of the largest detractors included lawn and landscape equipment provider The Toro Company, life science tools provider Thermo Fisher Scientific, Inc., and lab testing firm Quest Diagnostics, Inc., which lagged due to of general destocking in bioprocessing equipment following two years of unprecedented pandemic-related growth. Utility NextEra Energy, Inc. and electronic payments provider Fidelity National Information Services, Inc. also detracted as did an underweight to strong performing graphics chipmaker NVIDIA Corp., a position we added in the third quarter of 2023. We sold the fund’s holdings in Fidelity National Information Services, Inc. prior to period end.
Some of the largest contributors were design automation software firm Synopsys, Inc., pharmaceutical maker Novo Nordisk A/S, luxury fashion and accessories designer Hermes International SCA, and insulation and an out-of-benchmark position in building materials supplier TopBuild Corp. Synopsys, Inc. was among several leading contributors from the semiconductor industry involved in resource efficiency, a group that also included KLA Corp., a maker of process control semiconductors, and semiconductor equipment maker Applied Materials, Inc. Novo Nordisk, in the health innovators segment, is the leading developer of GLP-1 treatments for diabetes and obesity, markets that are growing rapidly. TopBuild is involved in the housing and smart buildings theme along with fellow contributor and HVAC supplier Ferguson PLC.
The views expressed in this report are exclusively those of Hans Peter Portner, CFA, and Gertjan van der Geer, Pictet Asset Management SA, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | Since
inception
(12-14-18) | Since
inception
(12-14-18) |
| Class A | 3.73 | 4.68 | 25.01 |
| Class C | 7.23 | 4.99 | 26.81 |
| Class I1 | 9.40 | 6.04 | 33.18 |
| Class R61 | 9.50 | 6.14 | 33.75 |
| Class NAV1 | 9.50 | 6.16 | 33.91 |
| Index† | 10.50 | 8.01 | 45.65 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class C | Class I | Class R6 | Class NAV |
| Gross (%) | 1.26 | 2.01 | 1.01 | 0.90 | 0.89 |
| Net (%) | 1.19 | 1.94 | 0.94 | 0.85 | 0.84 |
Please refer to the most recent prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the MSCI ACWI.
See the following page for footnotes.
| 6 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Global Thematic Opportunities Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI ACWI.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class C2 | 12-14-18 | 12,681 | 12,681 | 14,565 |
| Class I1 | 12-14-18 | 13,318 | 13,318 | 14,565 |
| Class R61 | 12-14-18 | 13,375 | 13,375 | 14,565 |
| Class NAV1 | 12-14-18 | 13,391 | 13,391 | 14,565 |
The MSCI All Country World Index (ACWI) tracks the performance of publicly traded large- and mid-cap stocks of companies in both developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectuses. |
| 2 | The contingent deferred sales charge is not applicable. |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $967.00 | $5.90 | 1.19% |
| | Hypothetical example | 1,000.00 | 1,019.20 | 6.06 | 1.19% |
| Class C | Actual expenses/actual returns | 1,000.00 | 963.40 | 9.60 | 1.94% |
| | Hypothetical example | 1,000.00 | 1,015.40 | 9.86 | 1.94% |
| Class I | Actual expenses/actual returns | 1,000.00 | 968.00 | 4.66 | 0.94% |
| | Hypothetical example | 1,000.00 | 1,020.50 | 4.79 | 0.94% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 968.90 | 4.17 | 0.84% |
| | Hypothetical example | 1,000.00 | 1,021.00 | 4.28 | 0.84% |
| Class NAV | Actual expenses/actual returns | 1,000.00 | 968.90 | 4.17 | 0.84% |
| | Hypothetical example | 1,000.00 | 1,021.00 | 4.28 | 0.84% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 97.9% | | | | | $229,376,928 |
| (Cost $201,127,392) | | | | | |
| Canada 1.6% | | | | | 3,664,024 |
| Lululemon Athletica, Inc. (A) | | 6,606 | 2,599,329 |
| Xenon Pharmaceuticals, Inc. (A) | | 34,345 | 1,064,695 |
| Denmark 3.2% | | | | | 7,463,498 |
| Novo Nordisk A/S, Class B | | 77,361 | 7,463,498 |
| France 8.6% | | | | | 20,055,579 |
| EssilorLuxottica SA | | 15,629 | 2,830,155 |
| Hermes International SCA | | 2,795 | 5,214,985 |
| L’Oreal SA | | 13,329 | 5,602,590 |
| Schneider Electric SE | | 41,648 | 6,407,849 |
| Germany 2.2% | | | | | 5,216,659 |
| Siemens AG | | 39,312 | 5,216,659 |
| Indonesia 0.9% | | | | | 2,146,888 |
| Bank Rakyat Indonesia Persero Tbk PT | | 6,866,000 | 2,146,888 |
| Ireland 2.5% | | | | | 5,850,354 |
| Allegion PLC | | 59,479 | 5,850,354 |
| Netherlands 5.0% | | | | | 11,727,896 |
| ASML Holding NV | | 11,686 | 7,024,695 |
| NXP Semiconductors NV | | 27,276 | 4,703,201 |
| Singapore 0.9% | | | | | 2,017,960 |
| DBS Group Holdings, Ltd. | | 84,000 | 2,017,960 |
| Sweden 1.1% | | | | | 2,643,881 |
| Hexagon AB, B Shares | | 324,417 | 2,643,881 |
| Switzerland 4.8% | | | | | 11,167,152 |
| Cie Financiere Richemont SA, A Shares | | 23,260 | 2,744,111 |
| Givaudan SA | | 1,237 | 4,117,383 |
| Sika AG | | 17,992 | 4,305,658 |
| Taiwan 2.0% | | | | | 4,801,253 |
| Taiwan Semiconductor Manufacturing Company, Ltd., ADR | | 55,628 | 4,801,253 |
| United Kingdom 2.1% | | | | | 5,020,585 |
| Ferguson PLC | | 33,426 | 5,020,585 |
| United States 61.8% | | | | | 144,784,719 |
| 89bio, Inc. (A) | | 154,695 | 1,144,743 |
| Adobe, Inc. (A) | | 10,316 | 5,488,731 |
| 10 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| United States (continued) | | | | | |
| Alphabet, Inc., Class A (A) | | 57,483 | $7,132,491 |
| Applied Materials, Inc. | | 21,383 | 2,830,040 |
| Boston Scientific Corp. (A) | | 130,019 | 6,655,673 |
| Cytokinetics, Inc. (A) | | 37,279 | 1,299,546 |
| Fidelity National Financial, Inc. | | 84,764 | 3,313,425 |
| Fortinet, Inc. (A) | | 41,210 | 2,355,976 |
| IDEX Corp. | | 23,425 | 4,483,779 |
| IDEXX Laboratories, Inc. (A) | | 12,579 | 5,024,933 |
| Intuit, Inc. | | 12,229 | 6,052,744 |
| KLA Corp. | | 14,993 | 7,042,212 |
| Marriott International, Inc., Class A | | 25,275 | 4,765,854 |
| Microsoft Corp. | | 25,067 | 8,475,403 |
| NextEra Energy, Inc. | | 122,152 | 7,121,462 |
| NVIDIA Corp. | | 12,932 | 5,273,670 |
| ON Semiconductor Corp. (A) | | 35,284 | 2,210,190 |
| Pool Corp. | | 9,379 | 2,961,607 |
| Quest Diagnostics, Inc. | | 9,540 | 1,241,154 |
| Republic Services, Inc. | | 49,241 | 7,311,796 |
| Roper Technologies, Inc. | | 14,740 | 7,201,522 |
| Synopsys, Inc. (A) | | 13,884 | 6,517,705 |
| The Toro Company | | 58,349 | 4,716,933 |
| Thermo Fisher Scientific, Inc. | | 17,607 | 7,831,065 |
| TopBuild Corp. (A) | | 20,353 | 4,655,952 |
| UnitedHealth Group, Inc. | | 19,915 | 10,665,677 |
| Visa, Inc., Class A | | 46,833 | 11,010,436 |
| Uruguay 1.2% | | | | | 2,816,480 |
| MercadoLibre, Inc. (A) | | 2,270 | 2,816,480 |
|
| Total investments (Cost $201,127,392) 97.9% | | | $229,376,928 |
| Other assets and liabilities, net 2.1% | | | 4,881,134 |
| Total net assets 100.0% | | | | | $234,258,062 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $202,167,621. Net unrealized appreciation aggregated to $27,209,307, of which $36,769,680 related to gross unrealized appreciation and $9,560,373 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 11 |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $201,127,392) | $229,376,928 |
| Cash | 8,827,946 |
| Dividends and interest receivable | 329,074 |
| Receivable for investments sold | 2,963,021 |
| Receivable from affiliates | 9,132 |
| Other assets | 41,012 |
| Total assets | 241,547,113 |
| Liabilities | |
| Payable for investments purchased | 7,094,061 |
| Payable for fund shares repurchased | 32,312 |
| Payable to affiliates | |
| Accounting and legal services fees | 17,188 |
| Transfer agent fees | 265 |
| Trustees’ fees | 420 |
| Other liabilities and accrued expenses | 144,805 |
| Total liabilities | 7,289,051 |
| Net assets | $234,258,062 |
| Net assets consist of | |
| Paid-in capital | $206,770,678 |
| Total distributable earnings (loss) | 27,487,384 |
| Net assets | $234,258,062 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($1,504,129 ÷ 138,808 shares)1 | $10.84 |
| Class C ($116,963 ÷ 11,119 shares)1 | $10.52 |
| Class I ($831,538 ÷ 76,373 shares) | $10.89 |
| Class R6 ($113,850 ÷ 10,445 shares) | $10.90 |
| Class NAV ($231,691,582 ÷ 21,246,306 shares) | $10.91 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $11.41 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 12 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $3,260,648 |
| Interest | 122,378 |
| Non-cash dividends | 271,134 |
| Securities lending | 625 |
| Less foreign taxes withheld | (153,997) |
| Total investment income | 3,500,788 |
| Expenses | |
| Investment management fees | 2,174,851 |
| Distribution and service fees | 5,347 |
| Accounting and legal services fees | 55,613 |
| Transfer agent fees | 3,075 |
| Trustees’ fees | 6,908 |
| Custodian fees | 204,688 |
| State registration fees | 69,783 |
| Printing and postage | 17,632 |
| Professional fees | 69,841 |
| Other | 32,247 |
| Total expenses | 2,639,985 |
| Less expense reductions | (400,598) |
| Net expenses | 2,239,387 |
| Net investment income | 1,261,401 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 6,692,551 |
| Affiliated investments | (1,241) |
| | 6,691,310 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 19,074,125 |
| | 19,074,125 |
| Net realized and unrealized gain | 25,765,435 |
| Increase in net assets from operations | $27,026,836 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 13 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $1,261,401 | $925,777 |
| Net realized gain (loss) | 6,691,310 | (7,552,078) |
| Change in net unrealized appreciation (depreciation) | 19,074,125 | (99,477,606) |
| Increase (decrease) in net assets resulting from operations | 27,026,836 | (106,103,907) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | (1,327) | (131,664) |
| Class C | — | (103,698) |
| Class I | (2,650) | (43,187) |
| Class R6 | (455) | (11,783) |
| Class NAV | (1,352,326) | (36,666,879) |
| Total distributions | (1,356,758) | (36,957,211) |
| From fund share transactions | (75,365,908) | 26,177,739 |
| Total decrease | (49,695,830) | (116,883,379) |
| Net assets | | |
| Beginning of year | 283,953,892 | 400,837,271 |
| End of year | $234,258,062 | $283,953,892 |
| 14 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $9.94 | $15.23 | $12.56 | $12.04 | $10.00 |
| Net investment income (loss)2 | 0.01 | (0.01) | (0.03) | 0.06 | 0.04 |
| Net realized and unrealized gain (loss) on investments | 0.90 | (3.85) | 3.49 | 0.92 | 2.00 |
| Total from investment operations | 0.91 | (3.86) | 3.46 | 0.98 | 2.04 |
| Less distributions | | | | | |
| From net investment income | (0.01) | — | (0.05) | (0.06) | — |
| From net realized gain | — | (1.43) | (0.74) | (0.40) | — |
| Total distributions | (0.01) | (1.43) | (0.79) | (0.46) | — |
| Net asset value, end of period | $10.84 | $9.94 | $15.23 | $12.56 | $12.04 |
| Total return (%)3,4 | 9.15 | (27.96) | 28.39 | 8.30 | 20.405 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $2 | $1 | $1 | $1 | $1 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.36 | 1.26 | 1.28 | 1.33 | 1.376 |
| Expenses including reductions | 1.19 | 1.19 | 1.19 | 1.19 | 1.196 |
| Net investment income (loss) | 0.11 | (0.05) | (0.20) | 0.48 | 0.396 |
| Portfolio turnover (%) | 71 | 48 | 43 | 58 | 59 |
| 1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Does not reflect the effect of sales charges, if any. |
| 5 | Not annualized. |
| 6 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 15 |
| CLASS C SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $9.72 | $15.03 | $12.44 | $11.96 | $10.00 |
| Net investment loss2 | (0.07) | (0.10) | (0.15) | (0.03) | (0.03) |
| Net realized and unrealized gain (loss) on investments | 0.87 | (3.78) | 3.48 | 0.91 | 1.99 |
| Total from investment operations | 0.80 | (3.88) | 3.33 | 0.88 | 1.96 |
| Less distributions | | | | | |
| From net realized gain | — | (1.43) | (0.74) | (0.40) | — |
| Net asset value, end of period | $10.52 | $9.72 | $15.03 | $12.44 | $11.96 |
| Total return (%)3,4 | 8.23 | (28.51) | 27.48 | 7.50 | 19.605 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $—6 | $—6 | $1 | $—6 | $—6 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 2.11 | 2.01 | 2.03 | 2.08 | 2.127 |
| Expenses including reductions | 1.94 | 1.94 | 1.94 | 1.94 | 1.947 |
| Net investment loss | (0.68) | (0.77) | (1.01) | (0.22) | (0.30)7 |
| Portfolio turnover (%) | 71 | 48 | 43 | 58 | 59 |
| 1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Does not reflect the effect of sales charges, if any. |
| 5 | Not annualized. |
| 6 | Less than $500,000. |
| 7 | Annualized. |
| 16 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $9.99 | $15.27 | $12.59 | $12.07 | $10.00 |
| Net investment income (loss)2 | 0.04 | 0.03 | (0.01) | 0.08 | 0.07 |
| Net realized and unrealized gain (loss) on investments | 0.90 | (3.88) | 3.51 | 0.93 | 2.00 |
| Total from investment operations | 0.94 | (3.85) | 3.50 | 1.01 | 2.07 |
| Less distributions | | | | | |
| From net investment income | (0.04) | —3 | (0.08) | (0.09) | — |
| From net realized gain | — | (1.43) | (0.74) | (0.40) | — |
| Total distributions | (0.04) | (1.43) | (0.82) | (0.49) | — |
| Net asset value, end of period | $10.89 | $9.99 | $15.27 | $12.59 | $12.07 |
| Total return (%)4 | 9.40 | (27.83) | 28.77 | 8.53 | 20.705 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $1 | $1 | $—6 | $—6 | $—6 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.11 | 1.01 | 1.03 | 1.08 | 1.127 |
| Expenses including reductions | 0.94 | 0.94 | 0.93 | 0.94 | 0.947 |
| Net investment income (loss) | 0.33 | 0.28 | (0.07) | 0.69 | 0.737 |
| Portfolio turnover (%) | 71 | 48 | 43 | 58 | 59 |
| 1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Less than $0.005 per share. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 5 | Not annualized. |
| 6 | Less than $500,000. |
| 7 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 17 |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $10.00 | $15.29 | $12.60 | $12.07 | $10.00 |
| Net investment income2 | 0.05 | 0.03 | 0.02 | 0.09 | 0.08 |
| Net realized and unrealized gain (loss) on investments | 0.90 | (3.87) | 3.51 | 0.94 | 1.99 |
| Total from investment operations | 0.95 | (3.84) | 3.53 | 1.03 | 2.07 |
| Less distributions | | | | | |
| From net investment income | (0.05) | (0.02) | (0.10) | (0.10) | — |
| From net realized gain | — | (1.43) | (0.74) | (0.40) | — |
| Total distributions | (0.05) | (1.45) | (0.84) | (0.50) | — |
| Net asset value, end of period | $10.90 | $10.00 | $15.29 | $12.60 | $12.07 |
| Total return (%)3 | 9.50 | (27.75) | 28.85 | 8.70 | 20.704 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $—5 | $—5 | $—5 | $—5 | $—5 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.00 | 0.90 | 0.93 | 0.97 | 1.016 |
| Expenses including reductions | 0.85 | 0.85 | 0.85 | 0.85 | 0.856 |
| Net investment income | 0.44 | 0.28 | 0.16 | 0.79 | 0.826 |
| Portfolio turnover (%) | 71 | 48 | 43 | 58 | 59 |
| 1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Not annualized. |
| 5 | Less than $500,000. |
| 6 | Annualized. |
| 18 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS NAV SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $10.01 | $15.29 | $12.60 | $12.08 | $10.00 |
| Net investment income2 | 0.05 | 0.03 | 0.03 | 0.09 | 0.09 |
| Net realized and unrealized gain (loss) on investments | 0.90 | (3.86) | 3.49 | 0.93 | 1.99 |
| Total from investment operations | 0.95 | (3.83) | 3.52 | 1.02 | 2.08 |
| Less distributions | | | | | |
| From net investment income | (0.05) | (0.02) | (0.09) | (0.10) | — |
| From net realized gain | — | (1.43) | (0.74) | (0.40) | — |
| Total distributions | (0.05) | (1.45) | (0.83) | (0.50) | — |
| Net asset value, end of period | $10.91 | $10.01 | $15.29 | $12.60 | $12.08 |
| Total return (%)3 | 9.50 | (27.67) | 28.86 | 8.62 | 20.804 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $232 | $282 | $398 | $332 | $362 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.99 | 0.89 | 0.92 | 0.96 | 1.005 |
| Expenses including reductions | 0.84 | 0.84 | 0.84 | 0.84 | 0.845 |
| Net investment income | 0.48 | 0.28 | 0.18 | 0.78 | 0.885 |
| Portfolio turnover (%) | 71 | 48 | 43 | 58 | 59 |
| 1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Not annualized. |
| 5 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 19 |
Notes to financial statements
Note 1—Organization
John Hancock Global Thematic Opportunities Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek growth through capital appreciation by investing mainly in equities of companies that may benefit from global long-term market themes.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee,
| 20 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | |
following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2023, by major security category or type:
| | Total
value at
10-31-23 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Canada | $3,664,024 | $3,664,024 | — | — |
| Denmark | 7,463,498 | — | $7,463,498 | — |
| France | 20,055,579 | — | 20,055,579 | — |
| Germany | 5,216,659 | — | 5,216,659 | — |
| Indonesia | 2,146,888 | — | 2,146,888 | — |
| Ireland | 5,850,354 | 5,850,354 | — | — |
| Netherlands | 11,727,896 | 4,703,201 | 7,024,695 | — |
| Singapore | 2,017,960 | — | 2,017,960 | — |
| Sweden | 2,643,881 | — | 2,643,881 | — |
| Switzerland | 11,167,152 | — | 11,167,152 | — |
| Taiwan | 4,801,253 | 4,801,253 | — | — |
| United Kingdom | 5,020,585 | 5,020,585 | — | — |
| United States | 144,784,719 | 144,784,719 | — | — |
| Uruguay | 2,816,480 | 2,816,480 | — | — |
| Total investments in securities | $229,376,928 | $171,640,616 | $57,736,312 | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
| | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 21 |
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund may invest its cash collateral in John Hancock Collateral Trust (JHCT), an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT is a prime money market fund and invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions on the loaned securities, as well as interest on such amounts. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations. As of October 31, 2023, there were no securities on loan.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated
| 22 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | |
funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $4,607.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2023, the fund has a short-term capital loss carryforward of $1,241,995 available to offset future net realized capital gains. This carryforward does not expire.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $1,356,758 | $7,660,978 |
| Long-term capital gains | — | 29,296,233 |
| Total | $1,356,758 | $36,957,211 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $1,514,770 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to investments in passive foreign investment companies, wash sale loss deferrals, and corporate actions.
| | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 23 |
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.840% of the first $250 million of the fund’s aggregate average net assets; (b) 0.815% of the next $250 million of the fund’s aggregate average net assets and (c) 0.790% of the next $500 million of the fund’s aggregate average net assets. When aggregate net assets exceed $1 billion, but are less than or equal to $2 billion, the advisory fee rate is 0.750% on all net assets of the fund. When aggregate net assets exceed $2 billion, the advisory fee rate is 0.730% on all net assets of the fund. Aggregate net assets include the net assets of the fund, Manulife Global Thematic Opportunities Fund (a Canadian mutual fund trust), Manulife Global Thematic Opportunities Class (a class of mutual fund shares of Manulife Investment Exchange Funds Corp.) (Canadian Class), excluding the Canadian Class invested in the Manulife Global Thematic Opportunities Fund, and effective September 1, 2023, John Hancock Global Environmental Opportunities Fund (a series of John Hancock Investment Trust). The Advisor has a subadvisory agreement with Pictet Asset Management SA. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.84% of average daily net assets, and expenses of Class A, Class C, and Class I shares exceed 1.19%, 1.94%, and 0.94%, respectively, of average daily net assets attributable to the class. Expenses of the fund means all expenses of the fund excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. Expenses of Class A, Class C, and Class I shares means all expenses of the fund attributable to the applicable class plus class-specific expenses. Each agreement expires on February 28, 2024, unless renewed by mutual agreement of the fund and Advisor based upon a determination that this is appropriate under the circumstances at that time.
| 24 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | |
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $2,846 |
| Class C | 201 |
| Class I | 1,448 |
| Class | Expense reduction |
| Class R6 | $173 |
| Class NAV | 395,930 |
| Total | $400,598 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.67% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
| Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $783 for the year ended October 31, 2023. Of this amount, $122 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $661 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, CDSCs received by the Distributor amounted to $72 for Class C shares. There were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6
| | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 25 |
Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $4,189 | $1,968 |
| Class C | 1,158 | 135 |
| Class I | — | 964 |
| Class R6 | — | 8 |
| Total | $5,347 | $3,075 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. Interest expense is included in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower
or Lender | Weighted Average
Loan Balance | Days
Outstanding | Weighted Average
Interest Rate | Interest Income
(Expense) | |
| Borrower | $7,625,000 | 8 | 3.305% | $(5,600) | |
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 34,923 | $390,166 | 75,058 | $938,289 |
| Distributions reinvested | 127 | 1,327 | 9,555 | 131,664 |
| Repurchased | (42,333) | (474,154) | (28,381) | (321,370) |
| Net increase (decrease) | (7,283) | $(82,661) | 56,232 | $748,583 |
| Class C shares | | | | |
| Sold | 6,890 | $70,521 | 756 | $9,000 |
| Distributions reinvested | — | — | 7,647 | 103,698 |
| Repurchased | (7,085) | (76,262) | (69,896) | (730,451) |
| Net decrease | (195) | $(5,741) | (61,493) | $(617,753) |
| 26 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | |
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class I shares | | | | |
| Sold | 33,833 | $379,954 | 94,883 | $1,241,022 |
| Distributions reinvested | 254 | 2,650 | 2,606 | 36,015 |
| Repurchased | (25,867) | (290,340) | (58,803) | (694,777) |
| Net increase | 8,220 | $92,264 | 38,686 | $582,260 |
| Class R6 shares | | | | |
| Sold | 1,064 | $12,000 | 1,018 | $12,000 |
| Distributions reinvested | 21 | 217 | 329 | 4,546 |
| Net increase | 1,085 | $12,217 | 1,347 | $16,546 |
| Class NAV shares | | | | |
| Sold | 13,462 | $151,582 | 787,385 | $8,271,517 |
| Distributions reinvested | 129,285 | 1,352,326 | 2,651,257 | 36,666,879 |
| Repurchased | (7,041,902) | (76,885,895) | (1,302,750) | (19,490,293) |
| Net increase (decrease) | (6,899,155) | $(75,381,987) | 2,135,892 | $25,448,103 |
| Total net increase (decrease) | (6,897,328) | $(75,365,908) | 2,170,664 | $26,177,739 |
Affiliates of the fund owned 48% and 100% of shares of Class R6 and Class NAV, respectively, on October 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $182,741,482 and $251,190,991, respectively, for the year ended October 31, 2023.
Note 7—Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
Note 8—Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2023, funds within the John Hancock group of funds complex held 98.9% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
| Fund | Affiliated Concentration |
| John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 51.9% |
| John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 24.2% |
| | ANNUAL REPORT | JOHN HANCOCK Global Thematic Opportunities Fund | 27 |
| Fund | Affiliated Concentration |
| John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 22.9% |
Note 9—Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| | | | | | | | Dividends and distributions |
| Affiliate | Ending
share
amount | Beginning
value | Cost of
purchases | Proceeds
from shares
sold | Realized
gain
(loss) | Change in
unrealized
appreciation
(depreciation) | Income
distributions
received | Capital gain
distributions
received | Ending
value |
| John Hancock Collateral Trust* | — | — | $5,947,700 | $(5,946,459) | $(1,241) | — | $625 | — | — |
| * | Refer to the Securities lending note within Note 2 for details regarding this investment. |
| 28 | JOHN HANCOCK Global Thematic Opportunities Fund | ANNUAL REPORT | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Global Thematic Opportunities Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Global Thematic Opportunities Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the four years in the period ended October 31, 2023 and for the period December 14, 2018 (commencement of operations) through October 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the four years in the period ended October 31, 2023 and for the period December 14, 2018 (commencement of operations) through October 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 29 |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| 30 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Pictet Asset Management SA (the Subadvisor), for John Hancock Global Thematic Opportunities Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 31 |
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
| 32 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index and peer group median for the one- and three-year periods ended December 31, 2022. The Board took into account management’s discussion of the factors that contributed to the fund’s performancerelative to the benchmark and peer group median for the one- and three-year periods including the impact of past and current market conditions on the fund’s strategy and management’s outlook for the fund. The Board concluded that the fund’s performance is being monitored and reasonably addressed, where appropriate.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are higher than the peer group median and net total expenses for the fund are lower than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 33 |
information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| (j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is |
| 34 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
| | based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
| (4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 35 |
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
***
| 36 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 37 |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| 38 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 39 |
| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| 40 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 41 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Pictet Asset Management SA
Portfolio Managers
Hans Peter Portner, CFA
Gertjan van der Geer
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| 42 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Environmental Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Global Thematic Opportunities Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
Annual report
John Hancock
International Dynamic Growth Fund
International equity
October 31, 2023
A message to shareholders
Dear shareholders,
Stocks performed well for most of the 12 months ended October 31, 2023, on hopes that falling inflation would allow world central banks to wrap up their long series of interest-rate increases. Economic growth and corporate earnings came in above expectations. Mega-cap U.S. technology-related stocks were a key driver of returns for the broad global indexes, as were the European markets.
The environment grew less favorable during the last three months of the period, as investors became concerned that inflation was set to reaccelerate and central banks would be compelled to keep interest rates higher for longer. The markets were further pressured by the combination of rising oil prices, signs of slowing global growth, and increasing geopolitical tensions, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
International Dynamic Growth Fund
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The MSCI All Country World (ACWI) ex USA Growth Index tracks the performance of growth stocks in the developed and emerging markets, excluding the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
1Class A shares were first offered on 5-3-19. Returns prior to this date are those of Class NAV shares that have not been adjusted for class-specific expenses; otherwise, returns would vary.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Moderating inflation and expectations of monetary policy easing helped to lift stocks
Most global stocks generated positive returns as inflationary pressures eased, fueling expectations that aggressive interest-rate hikes by many of the world’s central banks could be nearing an end.
The fund slightly outpaced its benchmark, the MSCI AC World (ACWI) ex USA Growth Index
The fund’s outperformance was due in part to stock selection in the information technology and healthcare sectors.
The fund’s positioning in the financials sector weighed on relative performance
In financials, the fund’s overweight had a negative relative impact, as the sector underperformed.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectuses. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectuses.
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 3 |
Management’s discussion of fund performance
What were the main drivers of global equity market performance during the 12 months ended October 31, 2023?
Global equities rose as inflationary pressures moderated throughout most of the period covered by this report. Economic growth showed consistent evidence of deceleration, supporting disinflationary trends. Many of the world’s major central banks responded by signaling that they were inclined to pause or end the course of aggressive interest-rate hikes begun in early 2022 in the wake of spiking consumer prices. In China, equities rallied early in the period amid expectations for a rebound in the nation’s economic growth following the removal of strict COVID-19 rules. However, many of the subsequent benefits of this policy change failed to live up to expectations, and concerns about China’s property sector and the strength of manufacturing pressured Chinese equities. In most of the world’s major developed markets, economic resilience and easing inflationary pressures provided a positive catalyst for stocks.
How did the fund perform?
The fund slightly outperformed the benchmark, owing in part to the positive impact of stock selection in the information technology and healthcare sectors. On the negative side, the fund’s overweight in financials had a negative relative impact, as the sector underperformed; security selection in financials also was a detractor, as was stock selection in industrials. At the geographic level, holdings in the U.S.
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Novo Nordisk A/S, Class B | 5.9 |
| NVIDIA Corp. | 5.4 |
| Microsoft Corp. | 4.6 |
| BAE Systems PLC | 4.1 |
| L’Oreal SA | 3.2 |
| RELX PLC | 3.2 |
| Shell PLC | 2.9 |
| Novartis AG | 2.8 |
| Linde PLC | 2.8 |
| London Stock Exchange Group PLC | 2.7 |
| TOTAL | 37.6 |
| Cash and cash equivalents are not included. |
TOP 10 COUNTRIES
AS OF 10/31/2023 (% of net assets) |
| United Kingdom | 18.3 |
| United States | 18.2 |
| Japan | 7.3 |
| Switzerland | 7.2 |
| France | 7.1 |
| Germany | 5.9 |
| Denmark | 5.9 |
| Netherlands | 5.1 |
| Taiwan | 4.3 |
| Canada | 2.7 |
| TOTAL | 82.0 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
aided relative performance the most. In contrast, the fund’s underweight in Asia ex-Japan was a significant detractor, as the region outperformed.
What were the key drivers of relative performance?
The fund’s top contributor relative to the benchmark was a position in NVIDIA Corp. Shares of the U.S.-based multinational technology company rose sharply amid surging growth of its data center business and expectations for rapid adoption of artificial intelligence applications. Other holdings that notably contributed to relative performance were Novo Nordisk A/S, a pharmaceutical developer based in Denmark; Microsoft Corp., a U.S.-based multinational technology company; and BAE Systems PLC, a U.K.-based defense contractor.
On the negative side, the fund’s underweight in Tencent Holdings, Ltd., was the most significant detractor. The Chinese multinational technology and entertainment conglomerate is a large component of the fund’s benchmark, and its shares outperformed. Other positions that notably detracted from relative performance were Teleperformance, a global digital business service company based in France; Alibaba Group Holding, Ltd., a Chinese multinational ecommerce company; and Rentokil Initial PLC, a U.K.-based provider of pest control and hygiene services. We sold the fund’s holdings in Teleperformance and Alibaba prior to period end.
The views expressed in this report are exclusively those of the portfolio management team at Axiom Investors LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | Since
inception
(4-17-19) | Since
inception
(4-17-19) |
| Class A1 | 3.81 | 4.42 | 21.73 |
| Class C1 | 7.47 | 4.85 | 23.98 |
| Class I1,2 | 9.57 | 5.90 | 29.73 |
| Class R61,2 | 9.79 | 6.00 | 30.31 |
| Class NAV2 | 9.79 | 6.03 | 30.47 |
| Index† | 9.19 | 1.60 | 7.48 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class C | Class I | Class R6 | Class NAV |
| Gross (%) | 1.29 | 2.04 | 1.04 | 0.93 | 0.92 |
| Net (%) | 1.19 | 1.95 | 0.95 | 0.84 | 0.83 |
Please refer to the most recent prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the MSCI ACWI ex USA Growth Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock International Dynamic Growth Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI ACWI ex USA Growth Index.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class C1,3 | 4-17-19 | 12,398 | 12,398 | 10,748 |
| Class I1,2 | 4-17-19 | 12,973 | 12,973 | 10,748 |
| Class R61,2 | 4-17-19 | 13,031 | 13,031 | 10,748 |
| Class NAV2 | 4-17-19 | 13,047 | 13,047 | 10,748 |
The MSCI All Country World (ACWI) ex USA Growth Index tracks the performance of growth stocks in the developed and emerging markets, excluding the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | Class A, Class C, Class I, and Class R6 shares were first offered on 5-3-19. Returns prior to this date are those of Class NAV shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
| 2 | For certain types of investors, as described in the fund’s prospectuses. |
| 3 | The contingent deferred sales charge is not applicable. |
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $930.80 | $5.84 | 1.20% |
| | Hypothetical example | 1,000.00 | 1,019.20 | 6.11 | 1.20% |
| Class C | Actual expenses/actual returns | 1,000.00 | 927.60 | 9.47 | 1.95% |
| | Hypothetical example | 1,000.00 | 1,015.40 | 9.91 | 1.95% |
| Class I | Actual expenses/actual returns | 1,000.00 | 932.40 | 4.63 | 0.95% |
| | Hypothetical example | 1,000.00 | 1,020.40 | 4.84 | 0.95% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 933.50 | 4.09 | 0.84% |
| | Hypothetical example | 1,000.00 | 1,021.00 | 4.28 | 0.84% |
| Class NAV | Actual expenses/actual returns | 1,000.00 | 933.60 | 4.05 | 0.83% |
| | Hypothetical example | 1,000.00 | 1,021.00 | 4.23 | 0.83% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 92.7% | | | | | $448,317,188 |
| (Cost $426,576,918) | | | | | |
| Australia 0.5% | | | | | 2,362,314 |
| Macquarie Group, Ltd. | | 22,982 | 2,362,314 |
| Brazil 1.0% | | | | | 4,963,104 |
| B3 SA - Brasil Bolsa Balcao | | 2,254,300 | 4,963,104 |
| Canada 2.7% | | | | | 13,149,021 |
| Canadian National Railway Company | | 44,500 | 4,708,480 |
| Dollarama, Inc. | | 123,600 | 8,440,541 |
| China 1.4% | | | | | 6,537,333 |
| Tencent Holdings, Ltd. | | 31,600 | 1,169,477 |
| Trip.com Group, Ltd. (A) | | 157,500 | 5,367,856 |
| Denmark 5.9% | | | | | 28,563,142 |
| Novo Nordisk A/S, Class B | | 296,064 | 28,563,142 |
| France 7.1% | | | | | 34,514,760 |
| Hermes International SCA | | 5,571 | 10,394,519 |
| L’Oreal SA | | 37,150 | 15,615,290 |
| LVMH Moet Hennessy Louis Vuitton SE | | 9,922 | 7,103,465 |
| STMicroelectronics NV | | 36,765 | 1,401,486 |
| Germany 5.9% | | | | | 28,769,176 |
| Deutsche Boerse AG | | 46,584 | 7,667,564 |
| Hensoldt AG | | 163,737 | 4,851,888 |
| MTU Aero Engines AG | | 29,670 | 5,576,677 |
| SAP SE | | 79,571 | 10,673,047 |
| Ireland 2.0% | | | | | 9,465,648 |
| ICON PLC (A) | | 38,800 | 9,465,648 |
| Italy 2.5% | | | | | 12,223,438 |
| Amplifon SpA | | 62,802 | 1,775,002 |
| Ferrari NV | | 34,517 | 10,448,436 |
| Japan 7.3% | | | | | 35,249,622 |
| BayCurrent Consulting, Inc. | | 180,100 | 4,521,727 |
| Japan Exchange Group, Inc. | | 308,700 | 6,104,480 |
| Kuraray Company, Ltd. | | 408,800 | 4,677,151 |
| Mitsubishi Heavy Industries, Ltd. | | 92,100 | 4,743,581 |
| Nippon Sanso Holdings Corp. | | 198,800 | 5,013,440 |
| Sony Group Corp. | | 60,100 | 4,996,647 |
| Tokio Marine Holdings, Inc. | | 232,100 | 5,192,596 |
| 10 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Mexico 0.2% | | | | | $965,914 |
| Grupo Aeroportuario del Centro Norte SAB de CV | | 126,000 | 965,914 |
| Netherlands 5.1% | | | | | 24,780,932 |
| ASM International NV | | 16,146 | 6,663,132 |
| ASML Holding NV | | 13,654 | 8,207,700 |
| Wolters Kluwer NV | | 77,238 | 9,910,100 |
| South Korea 2.0% | | | | | 9,632,876 |
| SK Hynix, Inc. | | 110,924 | 9,632,876 |
| Sweden 1.4% | | | | | 6,778,223 |
| Atlas Copco AB, A Shares | | 454,213 | 5,881,614 |
| EQT AB | | 49,076 | 896,609 |
| Switzerland 7.2% | | | | | 34,786,842 |
| Alcon, Inc. | | 143,800 | 10,255,816 |
| Novartis AG | | 144,863 | 13,562,011 |
| Straumann Holding AG | | 10,489 | 1,239,634 |
| UBS Group AG | | 195,994 | 4,605,162 |
| Zurich Insurance Group AG | | 10,788 | 5,124,219 |
| Taiwan 4.3% | | | | | 20,553,870 |
| Taiwan Semiconductor Manufacturing Company, Ltd. | | 572,000 | 9,342,201 |
| Taiwan Semiconductor Manufacturing Company, Ltd., ADR | | 129,900 | 11,211,669 |
| United Kingdom 18.3% | | | | | 88,654,874 |
| Ashtead Group PLC | | 77,452 | 4,442,069 |
| BAE Systems PLC | | 1,462,683 | 19,667,807 |
| Compass Group PLC | | 440,882 | 11,115,254 |
| London Stock Exchange Group PLC | | 131,688 | 13,286,682 |
| RELX PLC | | 445,825 | 15,554,936 |
| Rentokil Initial PLC | | 2,063,235 | 10,507,012 |
| Shell PLC | | 436,937 | 14,081,114 |
| United States 15.3% | | | | | 73,878,051 |
| Eli Lilly & Company | | 3,400 | 1,883,362 |
| Linde PLC | | 35,100 | 13,413,816 |
| Microsoft Corp. | | 66,338 | 22,429,541 |
| NVIDIA Corp. | | 64,180 | 26,172,604 |
| ServiceNow, Inc. (A) | | 17,150 | 9,978,728 |
| Uruguay 2.6% | | | | | 12,488,048 |
|
| MercadoLibre, Inc. (A) | | 10,065 | 12,488,048 |
| Exchange-traded funds 2.9% | | | | | $14,024,602 |
| (Cost $15,734,857) | | | | | |
| iShares Core MSCI EAFE ETF (B) | | 162,700 | 10,145,972 |
| iShares Core MSCI Total International Stock ETF (B) | | 67,000 | 3,878,630 |
|
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 11 |
| | | Yield (%) | | Shares | Value |
| Short-term investments 1.6% | | | | $7,652,989 |
| (Cost $7,651,627) | | | | | |
| Short-term funds 1.6% | | | | | 7,652,989 |
| John Hancock Collateral Trust (C) | 5.5153(D) | | 765,559 | 7,652,989 |
|
| Total investments (Cost $449,963,402) 97.2% | | | $469,994,779 |
| Other assets and liabilities, net 2.8% | | | 13,499,261 |
| Total net assets 100.0% | | | | | $483,494,040 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| (B) | All or a portion of this security is on loan as of 10-31-23. |
| (C) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
| (D) | The rate shown is the annualized seven-day yield as of 10-31-23. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $453,346,836. Net unrealized appreciation aggregated to $16,647,943, of which $37,020,839 related to gross unrealized appreciation and $20,372,896 related to gross unrealized depreciation.
| 12 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $442,311,775) including $7,483,829 of securities loaned | $462,341,790 |
| Affiliated investments, at value (Cost $7,651,627) | 7,652,989 |
| Total investments, at value (Cost $449,963,402) | 469,994,779 |
| Cash | 17,599,925 |
| Foreign currency, at value (Cost $98,614) | 98,613 |
| Dividends and interest receivable | 654,302 |
| Receivable for fund shares sold | 65,757 |
| Receivable for investments sold | 4,683,687 |
| Receivable for securities lending income | 1,640 |
| Receivable from affiliates | 6,696 |
| Other assets | 59,957 |
| Total assets | 493,165,356 |
| Liabilities | |
| Payable for investments purchased | 1,820,879 |
| Payable for fund shares repurchased | 30,541 |
| Payable upon return of securities loaned | 7,651,325 |
| Payable to affiliates | |
| Accounting and legal services fees | 35,622 |
| Transfer agent fees | 11,838 |
| Trustees’ fees | 594 |
| Other liabilities and accrued expenses | 120,517 |
| Total liabilities | 9,671,316 |
| Net assets | $483,494,040 |
| Net assets consist of | |
| Paid-in capital | $530,229,527 |
| Total distributable earnings (loss) | (46,735,487) |
| Net assets | $483,494,040 |
| |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 13 |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23 (continued)
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($12,296,917 ÷ 1,343,222 shares)1 | $9.15 |
| Class C ($142,750 ÷ 16,143 shares)1 | $8.84 |
| Class I ($98,022,011 ÷ 10,603,963 shares) | $9.24 |
| Class R6 ($31,927,473 ÷ 3,444,047 shares) | $9.27 |
| Class NAV ($341,104,889 ÷ 36,769,426 shares) | $9.28 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $9.63 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 14 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $6,408,051 |
| Interest | 142,322 |
| Securities lending | 14,820 |
| Less foreign taxes withheld | (483,641) |
| Total investment income | 6,081,552 |
| Expenses | |
| Investment management fees | 3,456,623 |
| Distribution and service fees | 35,576 |
| Accounting and legal services fees | 90,014 |
| Transfer agent fees | 111,751 |
| Trustees’ fees | 10,043 |
| Custodian fees | 159,291 |
| State registration fees | 76,564 |
| Printing and postage | 19,381 |
| Professional fees | 71,434 |
| Other | 54,483 |
| Total expenses | 4,085,160 |
| Less expense reductions | (391,360) |
| Net expenses | 3,693,800 |
| Net investment income | 2,387,752 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | (37,663,188) |
| Affiliated investments | 5,829 |
| | (37,657,359) |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 57,606,172 |
| Affiliated investments | 1,362 |
| | 57,607,534 |
| Net realized and unrealized gain | 19,950,175 |
| Increase in net assets from operations | $22,337,927 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 15 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $2,387,752 | $2,184,836 |
| Net realized loss | (37,657,359) | (29,920,486) |
| Change in net unrealized appreciation (depreciation) | 57,607,534 | (116,933,842) |
| Increase (decrease) in net assets resulting from operations | 22,337,927 | (144,669,492) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | (65,806) | (3,661,761) |
| Class C | — | (87,201) |
| Class I | (458,802) | (4,601,374) |
| Class R6 | (150,535) | (22,841) |
| Class NAV | (2,223,274) | (64,585,936) |
| Total distributions | (2,898,417) | (72,959,113) |
| From fund share transactions | 144,610,380 | 216,428,934 |
| Total increase (decrease) | 164,049,890 | (1,199,671) |
| Net assets | | |
| Beginning of year | 319,444,150 | 320,643,821 |
| End of year | $483,494,040 | $319,444,150 |
| 16 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $8.42 | $17.37 | $13.24 | $10.48 | $10.09 |
| Net investment income (loss)2 | 0.03 | 0.03 | (0.06) | (0.06) | (0.02) |
| Net realized and unrealized gain (loss) on investments | 0.75 | (5.03) | 5.01 | 2.82 | 0.41 |
| Total from investment operations | 0.78 | (5.00) | 4.95 | 2.76 | 0.39 |
| Less distributions | | | | | |
| From net investment income | (0.05) | — | — | —3 | — |
| From net realized gain | — | (3.95) | (0.82) | — | — |
| Total distributions | (0.05) | (3.95) | (0.82) | — | — |
| Net asset value, end of period | $9.15 | $8.42 | $17.37 | $13.24 | $10.48 |
| Total return (%)4,5 | 9.24 | (36.14) | 38.72 | 26.39 | 3.876 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $12 | $12 | $15 | $6 | $1 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.29 | 1.29 | 1.29 | 1.32 | 1.337 |
| Expenses including reductions | 1.20 | 1.20 | 1.20 | 1.20 | 1.207 |
| Net investment income (loss) | 0.28 | 0.31 | (0.35) | (0.50) | (0.31)7 |
| Portfolio turnover (%) | 85 | 94 | 133 | 135 | 48 |
| 1 | The inception date for Class A shares is 5-3-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Less than $0.005 per share. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Does not reflect the effect of sales charges, if any. |
| 6 | Not annualized. |
| 7 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 17 |
| CLASS C SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $8.15 | $17.05 | $13.10 | $10.44 | $10.09 |
| Net investment loss2 | (0.04) | (0.06) | (0.19) | (0.14) | (0.04) |
| Net realized and unrealized gain (loss) on investments | 0.73 | (4.89) | 4.96 | 2.80 | 0.39 |
| Total from investment operations | 0.69 | (4.95) | 4.77 | 2.66 | 0.35 |
| Less distributions | | | | | |
| From net realized gain | — | (3.95) | (0.82) | — | — |
| Net asset value, end of period | $8.84 | $8.15 | $17.05 | $13.10 | $10.44 |
| Total return (%)3,4 | 8.47 | (36.64) | 37.71 | 25.48 | 3.475 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $—6 | $—6 | $1 | $—6 | $—6 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 2.04 | 2.03 | 2.04 | 2.07 | 2.087 |
| Expenses including reductions | 1.95 | 1.94 | 1.95 | 1.95 | 1.957 |
| Net investment loss | (0.46) | (0.52) | (1.18) | (1.21) | (0.75)7 |
| Portfolio turnover (%) | 85 | 94 | 133 | 135 | 48 |
| 1 | The inception date for Class C shares is 5-3-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Does not reflect the effect of sales charges, if any. |
| 5 | Not annualized. |
| 6 | Less than $500,000. |
| 7 | Annualized. |
| 18 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $8.50 | $17.46 | $13.27 | $10.49 | $10.09 |
| Net investment income (loss)2 | 0.05 | 0.07 | (0.02) | —3 | 0.02 |
| Net realized and unrealized gain (loss) on investments | 0.76 | (5.08) | 5.03 | 2.80 | 0.38 |
| Total from investment operations | 0.81 | (5.01) | 5.01 | 2.80 | 0.40 |
| Less distributions | | | | | |
| From net investment income | (0.07) | — | — | (0.02) | — |
| From net realized gain | — | (3.95) | (0.82) | — | — |
| Total distributions | (0.07) | (3.95) | (0.82) | (0.02) | — |
| Net asset value, end of period | $9.24 | $8.50 | $17.46 | $13.27 | $10.49 |
| Total return (%)4 | 9.57 | (35.99) | 39.11 | 26.64 | 4.065 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $98 | $54 | $17 | $9 | $—6 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.04 | 1.04 | 1.04 | 1.08 | 1.087 |
| Expenses including reductions | 0.95 | 0.95 | 0.95 | 0.95 | 0.957 |
| Net investment income (loss) | 0.48 | 0.74 | (0.12) | 0.01 | 0.317 |
| Portfolio turnover (%) | 85 | 94 | 133 | 135 | 48 |
| 1 | The inception date for Class I shares is 5-3-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Less than $0.005 per share. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Not annualized. |
| 6 | Less than $500,000. |
| 7 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 19 |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $8.52 | $17.49 | $13.28 | $10.50 | $10.09 |
| Net investment income (loss)2 | 0.05 | 0.10 | —3 | (0.01) | 0.02 |
| Net realized and unrealized gain (loss) on investments | 0.78 | (5.12) | 5.03 | 2.82 | 0.39 |
| Total from investment operations | 0.83 | (5.02) | 5.03 | 2.81 | 0.41 |
| Less distributions | | | | | |
| From net investment income | (0.08) | — | — | (0.03) | — |
| From net realized gain | — | (3.95) | (0.82) | — | — |
| Total distributions | (0.08) | (3.95) | (0.82) | (0.03) | — |
| Net asset value, end of period | $9.27 | $8.52 | $17.49 | $13.28 | $10.50 |
| Total return (%)4 | 9.79 | (35.98) | 39.23 | 26.82 | 4.065 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $32 | $16 | $—6 | $—6 | $—6 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.93 | 0.93 | 0.93 | 0.96 | 0.987 |
| Expenses including reductions | 0.84 | 0.84 | 0.84 | 0.84 | 0.847 |
| Net investment income (loss) | 0.56 | 1.11 | —8 | (0.07) | 0.457 |
| Portfolio turnover (%) | 85 | 94 | 133 | 135 | 48 |
| 1 | The inception date for Class R6 shares is 5-3-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Less than $0.005 per share. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Not annualized. |
| 6 | Less than $500,000. |
| 7 | Annualized. |
| 8 | Less than 0.005%. |
| 20 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS NAV SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-191 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $8.53 | $17.50 | $13.28 | $10.50 | $10.00 |
| Net investment income2 | 0.06 | 0.07 | —3 | —3 | 0.03 |
| Net realized and unrealized gain (loss) on investments | 0.77 | (5.09) | 5.04 | 2.81 | 0.47 |
| Total from investment operations | 0.83 | (5.02) | 5.04 | 2.81 | 0.50 |
| Less distributions | | | | | |
| From net investment income | (0.08) | — | — | (0.03) | — |
| From net realized gain | — | (3.95) | (0.82) | — | — |
| Total distributions | (0.08) | (3.95) | (0.82) | (0.03) | — |
| Net asset value, end of period | $9.28 | $8.53 | $17.50 | $13.28 | $10.50 |
| Total return (%)4 | 9.79 | (35.91) | 39.13 | 26.92 | 5.005 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $341 | $237 | $288 | $232 | $337 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.92 | 0.92 | 0.92 | 0.95 | 0.966 |
| Expenses including reductions | 0.83 | 0.83 | 0.83 | 0.83 | 0.836 |
| Net investment income (loss) | 0.59 | 0.67 | 0.01 | (0.03) | 0.626 |
| Portfolio turnover (%) | 85 | 94 | 133 | 135 | 48 |
| 1 | Period from 4-17-19 (commencement of operations) to 10-31-19. |
| 2 | Based on average daily shares outstanding. |
| 3 | Less than $0.005 per share. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Not annualized. |
| 6 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 21 |
Notes to financial statements
Note 1—Organization
John Hancock International Dynamic Growth Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee,
| 22 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | |
following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2023, by major security category or type:
| | Total
value at
10-31-23 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Australia | $2,362,314 | — | $2,362,314 | — |
| Brazil | 4,963,104 | $4,963,104 | — | — |
| Canada | 13,149,021 | 13,149,021 | — | — |
| China | 6,537,333 | — | 6,537,333 | — |
| Denmark | 28,563,142 | — | 28,563,142 | — |
| France | 34,514,760 | — | 34,514,760 | — |
| Germany | 28,769,176 | — | 28,769,176 | — |
| Ireland | 9,465,648 | 9,465,648 | — | — |
| Italy | 12,223,438 | — | 12,223,438 | — |
| Japan | 35,249,622 | — | 35,249,622 | — |
| Mexico | 965,914 | 965,914 | — | — |
| Netherlands | 24,780,932 | — | 24,780,932 | — |
| South Korea | 9,632,876 | — | 9,632,876 | — |
| Sweden | 6,778,223 | — | 6,778,223 | — |
| Switzerland | 34,786,842 | 10,255,816 | 24,531,026 | — |
| Taiwan | 20,553,870 | 11,211,669 | 9,342,201 | — |
| United Kingdom | 88,654,874 | — | 88,654,874 | — |
| United States | 73,878,051 | 73,878,051 | — | — |
| Uruguay | 12,488,048 | 12,488,048 | — | — |
| Exchange-traded funds | 14,024,602 | 14,024,602 | — | — |
| Short-term investments | 7,652,989 | 7,652,989 | — | — |
| Total investments in securities | $469,994,779 | $158,054,862 | $311,939,917 | — |
| | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 23 |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund may invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT is a prime money market fund and invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions on the loaned securities, as well as interest on such amounts. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of October 31, 2023, the fund loaned securities valued at $7,483,829 and received $7,651,325 of cash collateral.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued
| 24 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | |
based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $5,265.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2023, the fund has a short-term capital loss carryforward of $52,639,096 and a long-term capital loss carryforward of $12,179,495 available to offset future net realized capital gains. These carryforwards do not expire.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $2,898,417 | $18,342,139 |
| Long-term capital gains | — | 54,616,974 |
| | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 25 |
| | October 31, 2023 | October 31, 2022 |
| Total | $2,898,417 | $72,959,113 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $1,443,192 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.800% of the first $500 million of the fund’s average daily net assets; (b) 0.790% of the next $500 million of the fund’s average daily net assets; (c) 0.750% of the next $1 billion of the fund’s average daily net assets; (d) 0.730% of the next $1 billion of the fund’s average daily net assets; and (e) 0.710% of the fund’s average daily net assets in excess of $3 billion. When aggregate net assets exceed $1 billion on any day, the annual rate of advisory fee is 0.750% on the first $1 billion of net assets. Prior to October 1, 2023, the annual rates were (a) 0.810% of the first $1 billion of the fund’s average daily net assets; and (b) 0.750% of the fund’s average daily net assets in excess of $1 billion. When aggregate net assets exceeded $1 billion on any day, the annual rate of advisory fee for that day was 0.750% on all assets. The Advisor has a subadvisory agreement with Axiom Investors LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
| 26 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | |
The Advisor has contractually agreed to reduce its management fee for the fund, or if necessary, make payment to the fund, in an amount equal to the amount by which the fund’s expenses exceed 0.83% of average daily net assets. Expenses means all the expenses of the fund, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, acquired fund fees and expenses paid indirectly, borrowing costs, prime brokerage fees, and short dividend expense. This agreement expires on February 28, 2024, unless renewed by mutual agreement of the fund and Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $12,191 |
| Class C | 175 |
| Class I | 73,765 |
| Class | Expense reduction |
| Class R6 | $23,038 |
| Class NAV | 282,191 |
| Total | $391,360 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.72% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
| Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $8,968 for the year ended October 31, 2023. Of this amount, $1,581 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $7,387 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, CDSCs received by the Distributor amounted to $59 for Class C shares. There were no CDSCs received by the Distributor for Class A shares.
| | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 27 |
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $33,609 | $15,780 |
| Class C | 1,967 | 231 |
| Class I | — | 94,166 |
| Class R6 | — | 1,574 |
| Total | $35,576 | $111,751 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower
or Lender | Weighted Average
Loan Balance | Days
Outstanding | Weighted Average
Interest Rate | Interest Income
(Expense) | |
| Lender | $5,050,000 | 2 | 5.678% | $1,593 | |
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 277,765 | $2,644,072 | 707,453 | $7,772,438 |
| Distributions reinvested | 7,459 | 65,792 | 294,255 | 3,660,538 |
| Repurchased | (341,311) | (3,268,471) | (460,367) | (4,729,116) |
| Net increase (decrease) | (56,087) | $(558,607) | 541,341 | $6,703,860 |
| 28 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | |
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class C shares | | | | |
| Sold | 9,362 | $85,395 | 18,040 | $166,364 |
| Distributions reinvested | — | — | 7,189 | 87,201 |
| Repurchased | (25,225) | (225,644) | (28,715) | (397,260) |
| Net decrease | (15,863) | $(140,249) | (3,486) | $(143,695) |
| Class I shares | | | | |
| Sold | 5,606,333 | $54,497,716 | 7,110,912 | $73,349,889 |
| Distributions reinvested | 51,480 | 457,654 | 366,936 | 4,601,374 |
| Repurchased | (1,454,330) | (13,842,144) | (2,026,817) | (19,459,149) |
| Net increase | 4,203,483 | $41,113,226 | 5,451,031 | $58,492,114 |
| Class R6 shares | | | | |
| Sold | 1,740,631 | $17,244,792 | 1,859,832 | $20,532,448 |
| Distributions reinvested | 16,895 | 150,535 | 260 | 3,273 |
| Repurchased | (174,092) | (1,648,389) | (5,165) | (50,019) |
| Net increase | 1,583,434 | $15,746,938 | 1,854,927 | $20,485,702 |
| Class NAV shares | | | | |
| Sold | 12,234,645 | $120,286,459 | 6,458,117 | $70,669,833 |
| Distributions reinvested | 249,526 | 2,223,274 | 5,138,102 | 64,585,936 |
| Repurchased | (3,509,325) | (34,060,661) | (290,004) | (4,364,816) |
| Net increase | 8,974,846 | $88,449,072 | 11,306,215 | $130,890,953 |
| Total net increase | 14,689,813 | $144,610,380 | 19,150,028 | $216,428,934 |
Affiliates of the fund owned 100% of shares of Class NAV on October 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $481,774,808 and $355,969,889, respectively, for the year ended October 31, 2023.
Note 7—Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2023, funds within the John Hancock group of funds complex held 70.6% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
| Fund | Affiliated Concentration |
| John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 21.8% |
| John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 16.3% |
| John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 12.2% |
| | ANNUAL REPORT | JOHN HANCOCK International Dynamic Growth Fund | 29 |
Note 8—Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| | | | | | | | Dividends and distributions |
| Affiliate | Ending
share
amount | Beginning
value | Cost of
purchases | Proceeds
from shares
sold | Realized
gain
(loss) | Change in
unrealized
appreciation
(depreciation) | Income
distributions
received | Capital gain
distributions
received | Ending
value |
| John Hancock Collateral Trust* | 765,559 | — | $79,228,971 | $(71,583,173) | $5,829 | $1,362 | $14,820 | — | $7,652,989 |
| * | Refer to the Securities lending note within Note 2 for details regarding this investment. |
| 30 | JOHN HANCOCK International Dynamic Growth Fund | ANNUAL REPORT | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock International Dynamic Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock International Dynamic Growth Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 31 |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
Income derived from foreign sources was $5,408,261. The fund intends to pass through foreign tax credits of $404,951.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| 32 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Axiom Investors LLC (the Subadvisor), for John Hancock International Dynamic Growth Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 33 |
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
| 34 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index and the peer group median for the three-year period ended December 31, 2022 and underperformed for the one-year period. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to its benchmark index and the peer group for the three-year period ended December 31, 2022. The Board also noted that the fund outperformed its benchmark index and the peer group median since the fund’s inception on April 30, 2019, through December 31, 2022. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 35 |
information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| (j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is |
| 36 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
| | based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
| (4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 37 |
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
| 38 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 39 |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| 40 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 41 |
| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| 42 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 43 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Axiom Investors LLC
Portfolio Managers
Bradley Amoils
Dean Bumbaca, CFA
Andrew Jacobson, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| 44 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Environmental Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock International Dynamic Growth Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
Annual report
John Hancock
Small Cap Core Fund
U.S. equity
October 31, 2023
A message to shareholders
Dear shareholder,
U.S. stocks posted gains for the 12 months ended October 31, 2023, although losses were experienced during the final three months of the period. Even though the U.S. Federal Reserve continued to raise interest rates, falling inflation gave investors confidence that the tightening cycle would likely recede at some point within the next year. Economic growth, while slowing, remained in positive territory even as interest rates rose. Together, these factors helped stocks overcome potential headwinds such as ongoing geopolitical instability, including the conflict in the Gaza Strip.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Kristie M. Feinberg
Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management
President and CEO,
John Hancock Investment Management
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Small Cap Core Fund
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)
The Russell 2000 Index tracks the performance of approximately 2,000 publicly traded small-cap companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
1Class A shares were first offered on 12-20-13 and ceased operations between 3-10-16 and 8-30-17. Returns while Class A shares were not offered are those of Class I shares that have not been adjusted for class-specific expenses; otherwise, returns would vary.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Divergent performance in the equity market
While large-cap U.S. stocks rallied thanks to the outperformance of a small group of large technology companies, small-cap stocks declined amid rising interest rates and economic uncertainty.
The fund posted a loss but outperformed its benchmark
Reflecting the broad weakness in small-cap stocks, the fund posted a loss but held up better than its benchmark, the Russell 2000 Index.
Individual stock selection added value
Stock selection in the healthcare and information technology sectors contributed the most to the fund’s outperformance of the benchmark.
SECTOR COMPOSITION AS OF 10/31/2023 (% of net assets)
Notes about risk
The fund is subject to various risks as described in the fund’s prospectuses. Political tensions, armed conflicts, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectuses.
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 3 |
Management’s discussion of fund performance
How did U.S. small-cap stocks perform during the 12 months ended October 31, 2023?
U.S. stocks produced mixed results for the period. After a downward start to the period, U.S. equities rallied in early 2023 amid rising expectations that a declining inflation rate would bring an end to an extended series of short-term interest rate increases by the U.S. Federal Reserve (Fed). In March, however, the collapse of two regional banks, Signature Bank (New York) and Silicon Valley Bank (California), weighed on investor sentiment, and the subsequent uncertainty about economic growth and Fed interest rate policy put downward pressure on most of the U.S. stock market. The exception was a small group of very large technology companies, particularly those that are poised to benefit from burgeoning developments in artificial intelligence. As a result, large-cap stocks posted solid gains for the period, led by that handful of mega-cap tech stocks, while small-cap stocks declined overall.
How did the fund perform?
The fund declined but outpaced the benchmark. Asset allocation was the most important factor behind the outperformance, most notably in the healthcare and information technology sectors. The top performance contributors in the portfolio included engineering and construction services company EMCOR Group, Inc. and western wear retailer Boot Barn Holdings, Inc. EMCOR benefited from better profit
TOP 10 HOLDINGS
AS OF 10/31/2023 (% of net assets) |
| Madison Square Garden Sports Corp. | 2.3 |
| Magnolia Oil & Gas Corp., Class A | 2.2 |
| Arcosa, Inc. | 2.2 |
| EMCOR Group, Inc. | 2.2 |
| EastGroup Properties, Inc. | 2.1 |
| Summit Materials, Inc., Class A | 1.9 |
| First Industrial Realty Trust, Inc. | 1.9 |
| The Timken Company | 1.8 |
| Chord Energy Corp. | 1.8 |
| Avient Corp. | 1.7 |
| TOTAL | 20.1 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
margins and increased demand for commercial building improvements, while Boot Barn continued to expand eastward from its west coast base, funding its growth through internal cash generation.
On the downside, entertainment systems company VIZIO Holding Corp. and regional bank Banner Corp. detracted the most from performance versus the benchmark. VIZIO reported disappointing advertising revenue from its streaming service, while Banner fell along with other regional banks following the March liquidity crises in the banking sector.
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | 5-year | Since
inception
(12-20-13) | 5-year | Since
inception
(12-20-13) |
| Class A1 | -9.90 | 5.79 | 5.85 | 32.49 | 75.29 |
| Class I2 | -4.88 | 7.15 | 6.63 | 41.23 | 88.36 |
| Class R61,2 | -4.79 | 7.27 | 6.64 | 42.02 | 88.59 |
| Class NAV2 | -4.79 | 7.27 | 6.75 | 42.05 | 90.47 |
| Index† | -8.56 | 3.31 | 5.45 | 17.67 | 68.74 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5%. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 2025 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class A | Class I | Class R6 | Class NAV |
| Gross (%) | 1.24 | 0.99 | 0.89 | 0.88 |
| Net (%) | 1.23 | 0.98 | 0.88 | 0.87 |
Please refer to the most recent prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the Russell 2000 Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Small Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the Russell 2000 Index.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class I2 | 12-20-13 | 18,836 | 18,836 | 16,874 |
| Class R61,2 | 12-20-13 | 18,859 | 18,859 | 16,874 |
| Class NAV2 | 12-20-13 | 19,047 | 19,047 | 16,874 |
The Russell 2000 Index tracks the performance of approximately 2,000 publicly traded small-cap companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | Class A and Class I shares were first offered on 12-20-13. Class A shares ceased operations between 3-10-16 and 8-30-17. Returns while Class A shares were not offered are those of Class I shares. Class R6 shares were first offered on 8-30-17. Returns shown prior to this date are those of Class A shares (or Class I shares for the period between 3-10-16 and 8-30-17), that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
| 2 | For certain types of investors, as described in the fund’s prospectuses. |
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2023, with the same investment held until October 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
5-1-2023 | Ending
value on
10-31-2023 | Expenses
paid during
period ended
10-31-20231 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $954.90 | $6.16 | 1.25% |
| | Hypothetical example | 1,000.00 | 1,018.90 | 6.36 | 1.25% |
| Class I | Actual expenses/actual returns | 1,000.00 | 956.00 | 4.93 | 1.00% |
| | Hypothetical example | 1,000.00 | 1,020.20 | 5.09 | 1.00% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 956.90 | 4.39 | 0.89% |
| | Hypothetical example | 1,000.00 | 1,020.70 | 4.53 | 0.89% |
| Class NAV | Actual expenses/actual returns | 1,000.00 | 956.10 | 4.34 | 0.88% |
| | Hypothetical example | 1,000.00 | 1,020.80 | 4.48 | 0.88% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 9 |
AS OF 10-31-23
| | | | | Shares | Value |
| Common stocks 95.8% | | | | | $1,597,406,827 |
| (Cost $1,721,978,030) | | | | | |
| Communication services 7.1% | | | 118,165,005 |
| Entertainment 3.5% | | | |
| Madison Square Garden Sports Corp. (A) | | | 230,525 | 38,760,470 |
| Playtika Holding Corp. (A) | | | 2,380,287 | 19,994,411 |
| Interactive media and services 2.8% | | | |
| Bumble, Inc., Class A (A) | | | 1,830,033 | 24,595,644 |
| Yelp, Inc. (A) | | | 533,409 | 22,504,526 |
| Media 0.8% | | | |
| WideOpenWest, Inc. (A) | | | 1,748,573 | 12,309,954 |
| Consumer discretionary 8.4% | | | 141,032,576 |
| Automobile components 0.7% | | | |
| Atmus Filtration Technologies, Inc. (A) | | | 593,345 | 11,131,152 |
| Hotels, restaurants and leisure 1.2% | | | |
| First Watch Restaurant Group, Inc. (A) | | | 1,223,787 | 20,449,481 |
| Household durables 1.0% | | | |
| Universal Electronics, Inc. (A)(B) | | | 682,976 | 5,361,362 |
| VIZIO Holding Corp., Class A (A) | | | 2,245,767 | 11,430,954 |
| Leisure products 1.0% | | | |
| Malibu Boats, Inc., Class A (A) | | | 404,765 | 17,655,849 |
| Specialty retail 3.3% | | | |
| Abercrombie & Fitch Company, Class A (A) | | | 145,532 | 8,851,256 |
| Boot Barn Holdings, Inc. (A) | | | 275,665 | 19,158,718 |
| Lithia Motors, Inc. | | | 108,868 | 26,368,918 |
| Textiles, apparel and luxury goods 1.2% | | | |
| Columbia Sportswear Company | | | 279,470 | 20,624,886 |
| Consumer staples 1.9% | | | 32,071,558 |
| Consumer staples distribution and retail 0.7% | | | |
| Performance Food Group Company (A) | | | 207,621 | 11,992,189 |
| Household products 1.2% | | | |
| Central Garden & Pet Company, Class A (A) | | | 505,905 | 20,079,369 |
| Energy 5.0% | | | 83,221,448 |
| Energy equipment and services 1.0% | | | |
| Helmerich & Payne, Inc. | | | 408,777 | 16,175,306 |
| Oil, gas and consumable fuels 4.0% | | | |
| Chord Energy Corp. | | | 178,611 | 29,527,971 |
| Magnolia Oil & Gas Corp., Class A | | | 1,671,188 | 37,518,171 |
| 10 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Financials 9.8% | | | $162,910,832 |
| Banks 8.3% | | | |
| Atlantic Union Bankshares Corp. | | | 922,994 | 26,591,457 |
| Banner Corp. | | | 516,040 | 21,782,048 |
| Independent Bank Group, Inc. | | | 713,525 | 25,223,109 |
| Pinnacle Financial Partners, Inc. | | | 361,325 | 22,532,227 |
| SouthState Corp. | | | 361,947 | 23,924,697 |
| Univest Financial Corp. | | | 1,063,315 | 17,714,828 |
| Financial services 1.5% | | | |
| Compass Diversified Holdings | | | 1,463,473 | 25,142,466 |
| Health care 13.7% | | | 227,845,103 |
| Biotechnology 1.0% | | | |
| ACADIA Pharmaceuticals, Inc. (A) | | | 209,948 | 4,738,526 |
| Ionis Pharmaceuticals, Inc. (A) | | | 138,589 | 6,135,335 |
| Ultragenyx Pharmaceutical, Inc. (A) | | | 157,777 | 5,585,306 |
| Health care equipment and supplies 5.9% | | | |
| Envista Holdings Corp. (A) | | | 643,095 | 14,964,821 |
| Globus Medical, Inc., Class A (A) | | | 456,864 | 20,883,253 |
| ICU Medical, Inc. (A) | | | 110,307 | 10,816,704 |
| Integer Holdings Corp. (A) | | | 36,925 | 2,997,202 |
| Integra LifeSciences Holdings Corp. (A) | | | 511,380 | 18,389,225 |
| Lantheus Holdings, Inc. (A) | | | 126,278 | 8,157,559 |
| Teleflex, Inc. | | | 119,237 | 22,029,036 |
| Health care providers and services 4.5% | | | |
| Acadia Healthcare Company, Inc. (A) | | | 266,928 | 19,621,877 |
| Henry Schein, Inc. (A) | | | 336,103 | 21,839,973 |
| Option Care Health, Inc. (A) | | | 607,545 | 16,847,223 |
| Patterson Companies, Inc. | | | 541,183 | 16,484,434 |
| Life sciences tools and services 1.5% | | | |
| Bio-Rad Laboratories, Inc., Class A (A) | | | 25,328 | 6,972,292 |
| Charles River Laboratories International, Inc. (A) | | | 103,201 | 17,374,920 |
| Pharmaceuticals 0.8% | | | |
| Prestige Consumer Healthcare, Inc. (A) | | | 235,974 | 14,007,417 |
| Industrials 17.6% | | | 293,843,594 |
| Aerospace and defense 2.4% | | | |
| Hexcel Corp. | | | 341,323 | 21,134,720 |
| Mercury Systems, Inc. (A) | | | 542,534 | 19,520,373 |
| Building products 4.5% | | | |
| Gibraltar Industries, Inc. (A) | | | 277,845 | 16,909,647 |
| Hayward Holdings, Inc. (A) | | | 1,841,725 | 19,338,113 |
| PGT Innovations, Inc. (A) | | | 708,987 | 21,227,071 |
| The AZEK Company, Inc. (A) | | | 657,870 | 17,236,194 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 11 |
| | | | | Shares | Value |
| Industrials (continued) | | | |
| Construction and engineering 5.3% | | | |
| Arcosa, Inc. | | | 523,671 | $36,169,956 |
| EMCOR Group, Inc. | | | 174,309 | 36,020,955 |
| MasTec, Inc. (A) | | | 268,164 | 15,939,668 |
| Machinery 4.4% | | | |
| Crane Company | | | 258,015 | 25,112,600 |
| The Middleby Corp. (A) | | | 172,550 | 19,475,719 |
| The Timken Company | | | 428,912 | 29,646,397 |
| Professional services 1.0% | | | |
| WNS Holdings, Ltd., ADR (A) | | | 296,616 | 16,112,181 |
| Information technology 22.0% | | | 366,891,878 |
| Electronic equipment, instruments and components 2.6% | | | |
| Advanced Energy Industries, Inc. | | | 191,431 | 16,704,269 |
| Crane NXT Company | | | 497,163 | 25,852,476 |
| Semiconductors and semiconductor equipment 6.9% | | | |
| Allegro MicroSystems, Inc. (A) | | | 596,938 | 15,496,510 |
| Alpha & Omega Semiconductor, Ltd. (A) | | | 737,118 | 17,484,439 |
| Ambarella, Inc. (A) | | | 295,745 | 13,305,568 |
| MACOM Technology Solutions Holdings, Inc. (A) | | | 307,695 | 21,704,805 |
| Synaptics, Inc. (A) | | | 256,971 | 21,498,194 |
| Veeco Instruments, Inc. (A) | | | 1,085,611 | 25,989,527 |
| Software 12.5% | | | |
| Adeia, Inc. | | | 2,301,878 | 19,404,832 |
| Alkami Technology, Inc. (A) | | | 375,306 | 6,736,743 |
| CommVault Systems, Inc. (A) | | | 383,992 | 25,093,877 |
| CyberArk Software, Ltd. (A) | | | 161,534 | 26,433,424 |
| Progress Software Corp. | | | 456,176 | 23,438,323 |
| Tenable Holdings, Inc. (A) | | | 569,075 | 23,963,748 |
| Varonis Systems, Inc. (A) | | | 833,657 | 28,044,221 |
| Xperi, Inc. (A) | | | 1,707,343 | 14,495,342 |
| Yext, Inc. (A) | | | 3,038,250 | 18,320,648 |
| Zuora, Inc., Class A (A) | | | 3,093,783 | 22,924,932 |
| Materials 3.6% | | | 60,337,954 |
| Chemicals 1.7% | | | |
| Avient Corp. | | | 889,036 | 28,111,318 |
| Construction materials 1.9% | | | |
| Summit Materials, Inc., Class A (A) | | | 979,533 | 32,226,636 |
| Real estate 5.6% | | | 92,857,059 |
| Hotel and resort REITs 1.6% | | | |
| Sunstone Hotel Investors, Inc. | | | 2,839,826 | 26,410,382 |
| 12 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Real estate (continued) | | | |
| Industrial REITs 4.0% | | | |
| EastGroup Properties, Inc. | | | 217,739 | $35,545,892 |
| First Industrial Realty Trust, Inc. | | | 730,515 | 30,900,785 |
| Utilities 1.1% | | | 18,229,820 |
| Multi-utilities 1.1% | | | |
| Unitil Corp. | | | 399,164 | 18,229,820 |
|
| | | Yield (%) | | Shares | Value |
| Short-term investments 3.9% | | | | | $65,305,603 |
| (Cost $65,293,134) | | | | | |
| Short-term funds 3.9% | | | | | 65,305,603 |
| John Hancock Collateral Trust (C) | 5.5153(D) | | 6,532,781 | 65,305,603 |
|
| Total investments (Cost $1,787,271,164) 99.7% | | | $1,662,712,430 |
| Other assets and liabilities, net 0.3% | | | | 4,781,887 |
| Total net assets 100.0% | | | | | $1,667,494,317 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| (B) | The fund owns 5% or more of the outstanding voting shares of the issuer and the security is considered an affiliate of the fund. For more information on this security refer to the Notes to financial statements. |
| (C) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
| (D) | The rate shown is the annualized seven-day yield as of 10-31-23. |
At 10-31-23, the aggregate cost of investments for federal income tax purposes was $1,801,742,085. Net unrealized depreciation aggregated to $139,029,655, of which $132,172,654 related to gross unrealized appreciation and $271,202,309 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 13 |
STATEMENT OF ASSETS AND LIABILITIES 10-31-23
| Assets | |
| Unaffiliated investments, at value (Cost $1,695,643,087) | $1,592,045,465 |
| Affiliated investments, at value (Cost $91,628,077) | 70,666,965 |
| Total investments, at value (Cost $1,787,271,164) | 1,662,712,430 |
| Dividends and interest receivable | 610,141 |
| Receivable for fund shares sold | 2,666,008 |
| Receivable for investments sold | 7,776,932 |
| Other assets | 202,281 |
| Total assets | 1,673,967,792 |
| Liabilities | |
| Payable for investments purchased | 4,465,369 |
| Payable for fund shares repurchased | 1,590,579 |
| Payable to affiliates | |
| Accounting and legal services fees | 125,863 |
| Transfer agent fees | 91,499 |
| Trustees’ fees | 2,109 |
| Other liabilities and accrued expenses | 198,056 |
| Total liabilities | 6,473,475 |
| Net assets | $1,667,494,317 |
| Net assets consist of | |
| Paid-in capital | $1,792,319,904 |
| Total distributable earnings (loss) | (124,825,587) |
| Net assets | $1,667,494,317 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($301,269,773 ÷ 22,968,222 shares)1 | $13.12 |
| Class I ($536,649,403 ÷ 40,526,076 shares) | $13.24 |
| Class R6 ($328,387,370 ÷ 24,677,981 shares) | $13.31 |
| Class NAV ($501,187,771 ÷ 37,674,522 shares) | $13.30 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $13.81 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 14 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 10-31-23
| Investment income | |
| Dividends | $17,232,594 |
| Dividends from affiliated investments | 3,565,559 |
| Total investment income | 20,798,153 |
| Expenses | |
| Investment management fees | 14,649,746 |
| Distribution and service fees | 837,458 |
| Accounting and legal services fees | 373,444 |
| Transfer agent fees | 1,079,469 |
| Trustees’ fees | 44,111 |
| Custodian fees | 209,017 |
| State registration fees | 122,611 |
| Printing and postage | 160,479 |
| Professional fees | 140,596 |
| Other | 111,632 |
| Total expenses | 17,728,563 |
| Less expense reductions | (158,715) |
| Net expenses | 17,569,848 |
| Net investment income | 3,228,305 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments | 5,873,269 |
| Affiliated investments | (45,536) |
| Redemptions in kind | 3,223,937 |
| | 9,051,670 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments | (90,969,042) |
| Affiliated investments | (8,583,459) |
| | (99,552,501) |
| Net realized and unrealized loss | (90,500,831) |
| Decrease in net assets from operations | $(87,272,526) |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 15 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
10-31-23 | Year ended
10-31-22 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income (loss) | $3,228,305 | $(3,168,154) |
| Net realized gain | 9,051,670 | 24,992,324 |
| Change in net unrealized appreciation (depreciation) | (99,552,501) | (286,060,408) |
| Decrease in net assets resulting from operations | (87,272,526) | (264,236,238) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | (3,167,148) | (42,498,021) |
| Class I | (5,170,175) | (38,685,082) |
| Class R6 | (2,991,328) | (28,511,043) |
| Class NAV | (4,861,848) | (73,151,385) |
| Total distributions | (16,190,499) | (182,845,531) |
| From fund share transactions | 88,461,649 | 512,958,764 |
| Total increase (decrease) | (15,001,376) | 65,876,995 |
| Net assets | | |
| Beginning of year | 1,682,495,693 | 1,616,618,698 |
| End of year | $1,667,494,317 | $1,682,495,693 |
| 16 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS A SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $13.97 | $18.52 | $12.22 | $11.78 | $11.42 |
| Net investment loss1 | (0.01) | (0.07) | (0.07) | (0.02) | (0.01) |
| Net realized and unrealized gain (loss) on investments | (0.71) | (2.42) | 6.57 | 0.46 | 0.89 |
| Total from investment operations | (0.72) | (2.49) | 6.50 | 0.44 | 0.88 |
| Less distributions | | | | | |
| From net realized gain | (0.13) | (2.06) | (0.20) | — | (0.52) |
| Net asset value, end of period | $13.12 | $13.97 | $18.52 | $12.22 | $11.78 |
| Total return (%)2,3 | (5.13) | (14.93) | 53.59 | 3.74 | 8.45 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $301 | $329 | $377 | $229 | $235 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.25 | 1.24 | 1.24 | 1.30 | 1.29 |
| Expenses including reductions | 1.24 | 1.23 | 1.23 | 1.29 | 1.29 |
| Net investment loss | (0.08) | (0.45) | (0.41) | (0.19) | (0.10) |
| Portfolio turnover (%) | 564 | 64 | 64 | 82 | 72 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Does not reflect the effect of sales charges, if any. |
| 4 | Excludes in-kind transactions. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 17 |
| CLASS I SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $14.06 | $18.59 | $12.25 | $11.78 | $11.41 |
| Net investment income (loss)1 | 0.02 | (0.03) | (0.03) | —2 | 0.02 |
| Net realized and unrealized gain (loss) on investments | (0.71) | (2.44) | 6.59 | 0.47 | 0.89 |
| Total from investment operations | (0.69) | (2.47) | 6.56 | 0.47 | 0.91 |
| Less distributions | | | | | |
| From net investment income | — | — | (0.02) | — | (0.02) |
| From net realized gain | (0.13) | (2.06) | (0.20) | — | (0.52) |
| Total distributions | (0.13) | (2.06) | (0.22) | — | (0.54) |
| Net asset value, end of period | $13.24 | $14.06 | $18.59 | $12.25 | $11.78 |
| Total return (%)3 | (4.88) | (14.74) | 53.94 | 3.99 | 8.79 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $537 | $540 | $308 | $47 | $25 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 1.00 | 0.99 | 0.99 | 1.04 | 1.05 |
| Expenses including reductions | 0.99 | 0.98 | 0.98 | 1.04 | 1.04 |
| Net investment income (loss) | 0.17 | (0.18) | (0.19) | (0.01) | 0.14 |
| Portfolio turnover (%) | 564 | 64 | 64 | 82 | 72 |
| 1 | Based on average daily shares outstanding. |
| 2 | Less than $0.005 per share. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Excludes in-kind transactions. |
| 18 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R6 SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $14.12 | $18.65 | $12.28 | $11.79 | $11.43 |
| Net investment income (loss)1 | 0.04 | (0.01) | (0.01) | 0.02 | 0.03 |
| Net realized and unrealized gain (loss) on investments | (0.72) | (2.45) | 6.61 | 0.47 | 0.89 |
| Total from investment operations | (0.68) | (2.46) | 6.60 | 0.49 | 0.92 |
| Less distributions | | | | | |
| From net investment income | — | (0.01) | (0.03) | — | (0.04) |
| From net realized gain | (0.13) | (2.06) | (0.20) | — | (0.52) |
| Total distributions | (0.13) | (2.07) | (0.23) | — | (0.56) |
| Net asset value, end of period | $13.31 | $14.12 | $18.65 | $12.28 | $11.79 |
| Total return (%)2 | (4.79) | (14.64) | 54.16 | 4.16 | 8.83 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $328 | $307 | $242 | $95 | $86 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.89 | 0.89 | 0.89 | 0.93 | 0.94 |
| Expenses including reductions | 0.88 | 0.88 | 0.88 | 0.93 | 0.93 |
| Net investment income (loss) | 0.28 | (0.09) | (0.07) | 0.16 | 0.25 |
| Portfolio turnover (%) | 563 | 64 | 64 | 82 | 72 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes in-kind transactions. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 19 |
| CLASS NAV SHARES Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $14.11 | $18.64 | $12.27 | $11.79 | $11.42 |
| Net investment income (loss)1 | 0.04 | (0.01) | (0.01) | 0.02 | 0.03 |
| Net realized and unrealized gain (loss) on investments | (0.72) | (2.45) | 6.61 | 0.46 | 0.90 |
| Total from investment operations | (0.68) | (2.46) | 6.60 | 0.48 | 0.93 |
| Less distributions | | | | | |
| From net investment income | — | (0.01) | (0.03) | — | (0.04) |
| From net realized gain | (0.13) | (2.06) | (0.20) | — | (0.52) |
| Total distributions | (0.13) | (2.07) | (0.23) | — | (0.56) |
| Net asset value, end of period | $13.30 | $14.11 | $18.64 | $12.27 | $11.79 |
| Total return (%)2 | (4.79) | (14.65) | 54.07 | 4.16 | 8.94 |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $501 | $507 | $690 | $342 | $298 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.88 | 0.88 | 0.88 | 0.92 | 0.93 |
| Expenses including reductions | 0.88 | 0.87 | 0.87 | 0.91 | 0.92 |
| Net investment income (loss) | 0.29 | (0.09) | (0.05) | 0.15 | 0.26 |
| Portfolio turnover (%) | 563 | 64 | 64 | 82 | 72 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 3 | Excludes in-kind transactions. |
| 20 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock Small Cap Core Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates,
| | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 21 |
prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of October 31, 2023, all investments are categorized as Level 1 under the hierarchy described above.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended October 31, 2023 were $10,104.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
| 22 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | |
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:
| | October 31, 2023 | October 31, 2022 |
| Ordinary income | $508 | $54,185,083 |
| Long-term capital gains | 16,189,991 | 128,660,448 |
| Total | $16,190,499 | $182,845,531 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $14,204,068 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals and in-kind transactions.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.870% of the first $300 million of the fund’s average daily net assets, (b) 0.830% of the next $300 million of the fund’s average daily net assets, (c) 0.815% of the next $300 million of the fund’s average daily net assets, and (d) 0.800% of the
| | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 23 |
fund’s average daily net assets in excess of $900 million. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2023, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $29,721 |
| Class I | 50,145 |
| Class R6 | 29,903 |
| Class | Expense reduction |
| Class NAV | $48,946 |
| Total | $158,715 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2023, were equivalent to a net annual effective rate of 0.81% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $203,523 for the year ended October 31, 2023. Of this amount, $34,255 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $169,268 was paid as sales commissions to broker-dealers.
Class A shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2023, CDSCs received by the Distributor amounted to $2,012 for Class A shares.
| 24 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | |
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2023 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $837,458 | $393,153 |
| Class I | — | 663,086 |
| Class R6 | — | 23,230 |
| Total | $837,458 | $1,079,469 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2023 and 2022 were as follows:
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 3,165,462 | $44,932,627 | 3,795,369 | $59,336,425 |
| Distributions reinvested | 237,850 | 3,146,755 | 2,610,958 | 42,193,082 |
| Repurchased | (3,980,424) | (56,279,654) | (3,234,225) | (49,523,351) |
| Net increase (decrease) | (577,112) | $(8,200,272) | 3,172,102 | $52,006,156 |
| Class I shares | | | | |
| Sold | 20,224,335 | $293,809,759 | 30,743,713 | $477,048,932 |
| Distributions reinvested | 375,567 | 5,002,557 | 2,376,848 | 38,600,010 |
| Repurchased | (18,455,277) | (264,888,886) | (11,287,727) | (171,426,486) |
| Net increase | 2,144,625 | $33,923,430 | 21,832,834 | $344,222,456 |
| Class R6 shares | | | | |
| Sold | 9,568,676 | $137,903,477 | 11,261,927 | $174,589,333 |
| Distributions reinvested | 223,403 | 2,989,129 | 1,750,742 | 28,502,075 |
| Repurchased | (6,871,884) | (99,388,809) | (4,239,751) | (64,810,266) |
| Net increase | 2,920,195 | $41,503,797 | 8,772,918 | $138,281,142 |
| | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 25 |
| | Year Ended 10-31-23 | Year Ended 10-31-22 |
| | Shares | Amount | Shares | Amount |
| Class NAV shares | | | | |
| Sold | 4,308,440 | $60,866,306 | 172,164 | $2,838,008 |
| Distributions reinvested | 363,639 | 4,861,848 | 4,493,328 | 73,151,385 |
| Repurchased | (2,898,159) | (44,493,460) | (5,761,832) | (97,540,383) |
| Net increase (decrease) | 1,773,920 | $21,234,694 | (1,096,340) | $(21,550,990) |
| Total net increase | 6,261,628 | $88,461,649 | 32,681,514 | $512,958,764 |
Affiliates of the fund owned 1% and 100% of shares of Class R6 and Class NAV, respectively, on October 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
On January 20, 2023 and June 28, 2023, there were redemptions in kind from Class R6 shares of $4,853,799 and $10,264,726, respectively, which represented approximately 0.3% and 0.6%, of the fund on the respective dates. For purposes of US GAAP, this transaction was treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the transfer. For tax purposes, no gains or losses were recognized. Net realized gain resulting from such redemption in kind is shown on the Statement of operations.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments and in kind transactions, amounted to $1,096,641,746 and $963,212,670, respectively, for the year ended October 31, 2023.
Note 7—Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2023, funds within the John Hancock group of funds complex held 30.0% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
| Fund | Affiliated Concentration |
| John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 14.1% |
| John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 9.1% |
| John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 6.2% |
Note 8—Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| 26 | JOHN HANCOCK Small Cap Core Fund | ANNUAL REPORT | |
| | | | | | | | Dividends and distributions |
| Affiliate | Ending
share
amount | Beginning
value | Cost of
purchases | Proceeds
from shares
sold | Realized
gain
(loss) | Change in
unrealized
appreciation
(depreciation) | Income
distributions
received | Capital gain
distributions
received | Ending
value |
| John Hancock Collateral Trust | 6,532,781 | $105,143,815 | $623,798,986 | $(663,666,116) | $15,443 | $13,475 | $3,565,559 | — | $65,305,603 |
Note 9—Transactions in securities of affiliated issuers
Affiliated issuers, as defined by the 1940 Act, are those in which the fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of the fund’s transactions in the securities of these issuers during the year ended October 31, 2023, is set forth below:
| | | | | | | | Dividends and distributions |
| Affiliate | Ending
share
amount | Beginning
value | Cost of
purchases | Proceeds
from shares
sold | Realized
gain
(loss) | Change in
unrealized
appreciation
(depreciation) | Income
distributions
received | Capital gain
distributions
received | Ending
value |
| Sciplay Corp., Class A* | — | $9,930,829 | $6,911,049 | $(22,921,446) | $6,835,215 | $(755,647) | — | — | — |
| Universal Electronics, Inc. | 682,976 | 13,390,552 | 709,685 | (80,962) | (60,979) | (8,596,934) | — | — | $5,361,362 |
| | | | | | $6,774,236 | $(9,352,581) | — | — | $5,361,362 |
| * | The security was an affiliate during the period but not an affiliate at the beginning or end of the year. |
| | ANNUAL REPORT | JOHN HANCOCK Small Cap Core Fund | 27 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Small Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Small Cap Core Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the five years in the period ended October 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 7, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| 28 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund paid $16,189,991 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 29 |
EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Manulife Investment Management (US) LLC (the Subadvisor) for John Hancock Small Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 26-29, 2023 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a meeting held on May 30-June 1, 2023. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory Agreements
At a meeting held on June 26-29, 2023, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
| 30 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 31 |
| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the one-, three- and five-year periods ended December 31, 2022. The Board also noted that the fund outperformed the peer group median for the three- and five-year periods ended December 31, 2022 and underperformed for the one-year period. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to its benchmark index for the one-, three- and five-year periods and peer group median for the three- and five-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduces management fees as assets increase. The Board noted that the fund has a voluntary fee waiver and/or expense reimbursement, which
| 32 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
reduce certain expenses of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor’s relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
| (i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
| (k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 33 |
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
| 34 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
***
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 35 |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 179 |
| Trustee and Chairperson of the Board | | |
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
| James R. Boyle, Born: 1959 | 2015 | 175 |
| Trustee | | |
| Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). |
| William H. Cunningham,3 Born: 1944 | 1986 | 177 |
| Trustee | | |
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
| Noni L. Ellison, Born: 1971 | 2022 | 175 |
| Trustee | | |
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 179 |
| Trustee | | |
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Dean C. Garfield, Born: 1968 | 2022 | 175 |
| Trustee | | |
| Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| 36 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Deborah C. Jackson, Born: 1952 | 2008 | 177 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| Steven R. Pruchansky, Born: 1944 | 1994 | 175 |
| Trustee and Vice Chairperson of the Board | | |
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
| Frances G. Rathke,3 Born: 1960 | 2020 | 175 |
| Trustee | | |
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| Gregory A. Russo, Born: 1949 | 2009 | 175 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 37 |
| Non-Independent Trustees4 | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 177 |
| Non-Independent Trustee | | |
| Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
| Paul Lorentz, Born: 1968 | 2022 | 175 |
| Non-Independent Trustee | | |
| Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Principal officers who are not Trustees | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Kristie M. Feinberg, Born: 1975 | 2023 |
| President | |
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
| 38 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee as of September 26, 2023. |
| 3 | Member of the Audit Committee. |
| 4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| | |
| | |
| | ANNUAL REPORT | JOHN HANCOCK SMALL CAP CORE FUND | 39 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz†
Frances G. Rathke*
Gregory A. Russo
Officers
Kristie M. Feinberg#
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Manulife Investment Management (US) LLC
Portfolio Managers
Ryan Davies, CFA
Joseph Nowinski
Bill Talbot, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
State Street Bank and Trust Company
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
π Member of the Audit Committee as of September 26, 2023.
† Non-Independent Trustee
* Member of the Audit Committee
# Effective June 29, 2023.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| 40 | JOHN HANCOCK SMALL CAP CORE FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Environmental Opportunities
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
FIXED-INCOME FUNDS
Bond
California Municipal Bond
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Municipal Opportunities
Opportunistic Fixed Income
Short Duration Bond
Short Duration Municipal Opportunities
Strategic Income Opportunities
ALTERNATIVE FUNDS
Alternative Asset Allocation
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
EXCHANGE-TRADED FUNDS
John Hancock Corporate Bond ETF
John Hancock Dynamic Municipal Bond ETF
John Hancock Fundamental All Cap Core ETF
John Hancock International High Dividend ETF
John Hancock Mortgage-Backed Securities ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Preferred Income ETF
John Hancock U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
Lifestyle Blend Portfolios
Lifetime Blend Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Small Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
12/2023
ITEM 2. CODE OF ETHICS.
As of the end of the period, October 31, 2023, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended October 31, 2023 and 2022. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | October 31, 2023 | October 31, 2022 |
John Hancock ESG International Equity Fund | $57,838 | $57,118 |
John Hancock ESG Large Cap Core Fund | $46,490 | $45,527 |
John Hancock Fundamental Large Cap Core | $44,224 | $43,359 |
John Hancock Global Environmental Opportunities Fund | $43,264 | $43,175 |
John Hancock Global Thematic Opportunities Fund | $48,432 | $48,120 |
John Hancock International Dynamic Growth Fund | $48,432 | $48,210 |
John Hancock Small Cap Core Fund | $44,224 | $43,359 |
(b) Audit-Related Services
Audit-related service fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided related to regulatory filings and affiliated service provider internal controls reviews.
Fund | October 31, 2023 | October 31, 2022 |
John Hancock ESG International Equity Fund | $628 | $585 |
John Hancock ESG Large Cap Core Fund | $628 | $585 |
John Hancock Fundamental Large Cap Core | $628 | $585 |
John Hancock Global Environmental Opportunities Fund | $628 | $585 |
John Hancock Global Thematic Opportunities Fund | $628 | $585 |
John Hancock International Dynamic Growth Fund | $628 | $585 |
John Hancock Small Cap Core Fund | $628 | $585 |
In addition, amounts billed to control affiliates for service provider internal controls reviews were $127,986 and $121,890 for the fiscal years ended October 31, 2023 and 2022, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years ended October 31, 2023 and 2022. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | October 31, 2023 | October 31, 2022 |
John Hancock ESG International Equity Fund | $6,662 | $4,716 |
John Hancock ESG Large Cap Core Fund | $5,253 | $10,310 |
John Hancock Fundamental Large Cap Core | $6,566 | $5,360 |
John Hancock Global Environmental Opportunities Fund | $7,935 | $4,716 |
John Hancock Global Thematic Opportunities Fund | $6,662 | $4,716 |
John Hancock International Dynamic Growth Fund | $6,662 | $5,966 |
John Hancock Small Cap Core Fund | $6,566 | $5,360 |
(d) All Other Fees
Other fees billed for professional services rendered by the principal accountant to the registrant or to the control affiliates for the fiscal years ended October 31, 2023 and 2022 amounted to the following:
Fund | October 31, 2023 | October 31, 2022 |
John Hancock ESG International Equity Fund | $0 | $163 |
John Hancock ESG Large Cap Core Fund | $0 | $163 |
John Hancock Fundamental Large Cap Core | $0 | $163 |
John Hancock Global Environmental Opportunities Fund | $0 | $163 |
John Hancock Global Thematic Opportunities Fund | $0 | $163 |
John Hancock International Dynamic Growth Fund | $0 | $163 |
John Hancock Small Cap Core Fund | $0 | $163 |
The nature of the services comprising all other fees is advisory services provided to the investment manager.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to
exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) According to the registrant's principal accountant, for the fiscal period ended October 31, 2023, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g) The aggregate non-audit fees billed by the registrant's accountant for non- audit services rendered to the registrant and rendered to the registrant's control affiliates for the fiscal years ended October 31, 2023 and 2023 amounted to the following:
Trust | October 31, 2023 | October 31, 2022 |
John Hancock Investment Trust | $1,244,869 | $1,085,917 |
(h) The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.
(i) Not applicable
(j) Not applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Frances G. Rathke – Chairperson William H. Cunningham
Hassell H. McClellan - Member of the Audit Committee as of September 26, 2023
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not applicable.
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED- END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating and Governance Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as
conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Code of Ethics for Covered Officers is attached.
(a)(2) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b)Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached "John Hancock Funds – Nominating and Governance Committee Charter".
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Investment Trust
By: | /s/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | December 7, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kristie M. Feinberg |
| ------------------------------- |
| Kristie M. Feinberg |
| President |
Date: | December 7, 2023 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | December 7, 2023 |
