UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-00560
John Hancock Investment Trust
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service) Registrant's telephone number, including area code: 617-543-9634
Date of fiscal year end: | March 31 |
Date of reporting period: | March 31, 2024 |
ITEM 1. REPORTS TO STOCKHOLDERS.
The Registrant prepared the following annual reports to shareholders for the period ended March 31, 2024:
•John Hancock Diversified Real Assets Fund
•John Hancock Fundamental Equity Income Fund
•John Hancock Global Climate Action Fund
•John Hancock Mid Cap Growth Fund
Annual report
John Hancock
Diversified Real Assets Fund
Alternative
March 31, 2024
Beginning on July 24, 2024, as required by regulations adopted by the U.S. Securities and Exchange Commission, open-end mutual funds and ETFs will transmit tailored annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in shareholder reports transmitted to shareholders, but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR.
A message to shareholders
Dear shareholder,
Global equities posted gains during the 12 months ended March 31, 2024. Economic growth remained in positive territory despite an extended series of interest-rate hikes by the world’s major central banks, raising hopes for a soft landing for the world economy. Investors were further encouraged by indications from the U.S. Federal Reserve that it may cut interest rates later in 2024. While expectations regarding the number and timing of potential cuts fluctuated considerably, the markets remained well supported by the broader trend in favor of looser monetary policy.
The United States was the top performer among major developed markets, reflecting the outperformance of several mega-cap technology stocks. Japan was another notable standout thanks to the combination of improving growth, falling inflation, and its central bank’s shift away from its longstanding zero interest-rate policy. Europe’s smaller markets also performed well, augmenting gains for the region’s core nations. The emerging markets, while positive in absolute terms, lagged due to persistent concerns about China’s economic growth.
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
Diversified Real Assets Fund
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks a long-term total return in excess of inflation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/2024 (%)
The MSCI World Index tracks the performance of publicly traded large- and mid-cap stocks of developed-market companies.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Most segments of the financial markets posted gains during the period
The combination of better-than-expected economic growth and the prospect of more accommodative central bank policy helped fuel investors’ appetite for risk.
The fund underperformed its benchmark, the MSCI World Index
The five underlying portfolios in which the fund invests lagged the broader global equity markets.
Each of the fund’s five underlying portfolios registered positive returns
Energy and U.S. REIT holdings produced the largest absolute gains, while metals and mining stocks lagged.
SECTOR COMPOSITION AS OF 3/31/2024 (% 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 DIVERSIFIED REAL ASSETS FUND | 3 |
Management’s discussion of fund performance
How would you describe the market environment during the 12 months ended March 31, 2024?
The equity markets produced gains for the period. Global economic growth remained in positive territory despite the extended series of interest-rate hikes by the world’s central banks, raising hopes for a soft landing in the world economy. Investors were further encouraged by the U.S. Federal Reserve’s (Fed’s) indications that it may being cutting interest rates in 2024. While expectations regarding the number and timing of potential cuts fluctuated, the markets remained well supported by the broader trends in favor of looser monetary policy.
The fund invests in five areas: energy stocks, U.S. real estate investment trusts (REITs), non-U.S. REITs, global infrastructure stocks, and metal and mining equities. The energy sector, which benefited from an uptrend in oil prices during the final three months of the reporting period, was the top-performing area. U.S. and global REITs both delivered gains, but global REITs lagged their U.S. counterparts. Infrastructure stocks and metals & mining stocks also finished with positive returns. Metals & mining was the worst performer among the five segments industry, due largely to the adverse impact China’s slowing economic growth had on demand.
What factors affected the fund’s performance?
All five underlying fund categories lagged the fund’s reference benchmark, the MSCI World Index, which invests across the global equity markets and includes U.S. mega-cap technology stocks. The following discussion refers to absolute performance.
TOP 10 HOLDINGS
AS OF 3/31/2024 (% of net assets) |
| Prologis, Inc. | 3.3 |
| Exxon Mobil Corp. | 2.7 |
| Shell PLC | 2.5 |
| Equinix, Inc. | 2.4 |
| Chevron Corp. | 2.1 |
| Canadian Natural Resources, Ltd. | 2.0 |
| Freeport-McMoRan, Inc. | 2.0 |
| ConocoPhillips | 1.6 |
| Welltower, Inc. | 1.6 |
| TotalEnergies SE | 1.6 |
| TOTAL | 21.8 |
| Cash and cash equivalents are not included. |
COUNTRY COMPOSITION
AS OF 3/31/2024 (% of net assets) |
| United States | 54.9 |
| Canada | 19.8 |
| United Kingdom | 6.9 |
| Japan | 3.3 |
| Australia | 3.3 |
| France | 3.1 |
| Norway | 1.0 |
| Other countries | 7.7 |
| TOTAL | 100.0 |
| 4 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
The fund’s energy sector portfolio produced the largest gains. Robust security selection in the integrated oil & gas and oil & gas exploration and production industries contributed to performance, as did an overweight allocation to oil & gas exploration and production. At the individual security level, the fund’s underweight allocation to Exxon Mobil Corp. and Chevron Corp., as well as overweights in Canadian National Resources, Ltd., and TechnipFMC PLC, were beneficial. On the negative side, positions in renewable energy companies, including SolarEdge Technologies, Inc. and Enphase Energy, Inc., detracted.
The infrastructure portfolio generated a positive return, thanks to holdings in the water utilities, oil, gas, and consumable fuels, and diversified financial services industries. In the U.S. REIT portfolio, sector allocations and individual security selection aided results. Security selection in specialized REITs detracted, as did an underweight in office REITs. On the non-U.S. side, favorable stock selection in industrial and residential REITs contributed to performance, while overweights in hotels/restaurants and telecommunication service industries detracted.
Security selection in the gold mining and precious metals & minerals subindustries were the main contributors to returns in the metals & mining portfolio. The leading contributors included overweights in Hudbay Minerals, Inc., Capstone Copper Corp., and the uranium producer Cameco Corp. Overweights in First Quantum Minerals, Ltd., Piedmont Lithium, Inc., and Sigma Lithium Corp. were among the largest detractors.
Diversified Real Assets Fund is
managed by a team of portfolio
managers across two different
asset managers.
The views expressed in this report are exclusively those of the portfolio management teams at Manulife Investment Management (North America) Limited and Wellington Management Company LLP, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2024
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | 5-year | Since
inception
(2-26-18) | 5-year | Since
inception
(2-26-18) |
| Class NAV1 | 10.30 | 7.58 | 6.70 | 44.07 | 48.49 |
| Index† | 25.11 | 12.07 | 9.92 | 76.81 | 78.02 |
Performance figures assume all distributions have been reinvested. Sales charges are not applicable to Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 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 NAV |
| Gross (%) | 0.92 |
| Net (%) | 0.87 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Index is the MSCI World Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
This chart shows what happened to a hypothetical $10,000 investment in John Hancock Diversified Real Assets Fund for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI World Index.
The MSCI World Index tracks the performance of publicly traded large- and mid-cap stocks of developed-market companies.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectus. |
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at March 31, 2024, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
10-1-2023 | Ending
value on
3-31-2024 | Expenses
paid during
period ended
3-31-20241 | Annualized
expense
ratio |
| Class NAV | Actual expenses/actual returns | $1,000.00 | $1,110.90 | $4.64 | 0.88% |
| | Hypothetical example | 1,000.00 | 1,020.60 | 4.45 | 0.88% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 9 |
AS OF 3-31-24
| | | | | Shares | Value |
| Common stocks 99.4% | | | | | $1,083,969,738 |
| (Cost $819,236,868) | | | | | |
| Communication services 0.9% | | | 9,929,065 |
| Diversified telecommunication services 0.4% | | | |
| KT Corp. | | | 39,106 | 1,102,991 |
| Nippon Telegraph & Telephone Corp. | | | 2,611,825 | 3,110,953 |
| Wireless telecommunication services 0.5% | | | |
| KDDI Corp. | | | 93,000 | 2,749,705 |
| SK Telecom Company, Ltd. | | | 74,893 | 2,965,416 |
| Consumer discretionary 1.8% | | | 19,467,854 |
| Hotels, restaurants and leisure 1.0% | | | |
| Accor SA | | | 32,416 | 1,513,393 |
| Hyatt Hotels Corp., Class A | | | 22,906 | 3,656,256 |
| Marriott International, Inc., Class A | | | 17,036 | 4,298,353 |
| Oriental Land Company, Ltd. | | | 37,628 | 1,205,440 |
| Household durables 0.8% | | | |
| Bellway PLC | | | 26,858 | 900,971 |
| D.R. Horton, Inc. | | | 15,043 | 2,475,326 |
| Kaufman & Broad SA | | | 28,932 | 843,514 |
| Sekisui House, Ltd. | | | 118,900 | 2,708,265 |
| The Berkeley Group Holdings PLC | | | 31,064 | 1,866,336 |
| Consumer staples 0.1% | | | 887,677 |
| Consumer staples distribution and retail 0.1% | | | |
| Alimentation Couche-Tard, Inc. | | | 15,553 | 887,677 |
| Energy 34.8% | | | 379,928,901 |
| Energy equipment and services 2.8% | | | |
| Aker Solutions ASA | | | 189,283 | 678,917 |
| Baker Hughes Company | | | 73,694 | 2,468,749 |
| ChampionX Corp. | | | 40,852 | 1,466,178 |
| Enerflex, Ltd. (A) | | | 171,288 | 996,456 |
| Halliburton Company | | | 185,687 | 7,319,782 |
| Helmerich & Payne, Inc. | | | 36,549 | 1,537,251 |
| Noble Corp. PLC | | | 36,755 | 1,782,250 |
| Patterson-UTI Energy, Inc. | | | 156,972 | 1,874,246 |
| Schlumberger, Ltd. | | | 201,488 | 11,043,557 |
| TechnipFMC PLC | | | 79,741 | 2,002,297 |
| Oil, gas and consumable fuels 32.0% | | | |
| Advantage Energy, Ltd. (B) | | | 203,083 | 1,481,274 |
| Aker BP ASA | | | 81,200 | 2,036,618 |
| Antero Resources Corp. (B) | | | 54,018 | 1,566,522 |
| 10 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Energy (continued) | | | |
| Oil, gas and consumable fuels (continued) | | | |
| ARC Resources, Ltd. | | | 141,221 | $2,517,801 |
| BP PLC | | | 2,451,660 | 15,380,294 |
| Cameco Corp. | | | 204,710 | 8,862,127 |
| Canadian Natural Resources, Ltd. | | | 287,038 | 21,896,302 |
| Cenovus Energy, Inc. | | | 719,914 | 14,392,434 |
| Cheniere Energy, Inc. | | | 10,109 | 1,630,380 |
| Chevron Corp. | | | 147,381 | 23,247,879 |
| ConocoPhillips | | | 140,915 | 17,935,661 |
| Coterra Energy, Inc. | | | 172,373 | 4,805,759 |
| Devon Energy Corp. | | | 100,575 | 5,046,854 |
| Diamondback Energy, Inc. | | | 30,639 | 6,071,731 |
| Enbridge, Inc. (A) | | | 47,269 | 1,710,192 |
| Encore Energy Corp. (B) | | | 75,000 | 328,500 |
| Energy Fuels, Inc. (A)(B) | | | 79,455 | 496,832 |
| Enerplus Corp. | | | 120,793 | 2,372,966 |
| EOG Resources, Inc. | | | 74,478 | 9,521,268 |
| EQT Corp. | | | 195,645 | 7,252,560 |
| Equinor ASA | | | 211,595 | 5,673,794 |
| Exxon Mobil Corp. | | | 251,592 | 29,245,054 |
| Galp Energia SGPS SA | | | 264,130 | 4,366,710 |
| Hess Corp. | | | 26,371 | 4,025,269 |
| Imperial Oil, Ltd. | | | 67,678 | 4,668,086 |
| Kelt Exploration, Ltd. (B) | | | 324,558 | 1,449,615 |
| Keyera Corp. | | | 111,368 | 2,868,576 |
| Marathon Petroleum Corp. | | | 62,779 | 12,649,969 |
| MEG Energy Corp. (B) | | | 172,495 | 3,960,426 |
| Neste OYJ | | | 27,144 | 736,018 |
| NexGen Energy, Ltd. (B) | | | 482,039 | 3,747,275 |
| NuVista Energy, Ltd. (B) | | | 160,391 | 1,406,700 |
| Occidental Petroleum Corp. | | | 114,247 | 7,424,913 |
| ONEOK, Inc. | | | 17,022 | 1,364,654 |
| Pembina Pipeline Corp. (A) | | | 137,434 | 4,850,851 |
| Phillips 66 | | | 56,297 | 9,195,552 |
| Pioneer Natural Resources Company | | | 35,765 | 9,388,313 |
| Shell PLC | | | 808,012 | 26,809,396 |
| Suncor Energy, Inc. | | | 422,361 | 15,587,336 |
| Targa Resources Corp. | | | 40,411 | 4,525,628 |
| TC Energy Corp. | | | 56,444 | 2,268,511 |
| The Williams Companies, Inc. | | | 223,599 | 8,713,653 |
| Topaz Energy Corp. | | | 46,194 | 760,493 |
| TotalEnergies SE | | | 249,444 | 17,159,156 |
| Tourmaline Oil Corp. | | | 77,487 | 3,622,791 |
| Uranium Royalty Corp. (A)(B) | | | 125,000 | 298,750 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 11 |
| | | | | Shares | Value |
| Energy (continued) | | | |
| Oil, gas and consumable fuels (continued) | | | |
| Valero Energy Corp. | | | 64,043 | $10,931,500 |
| Var Energi ASA | | | 299,204 | 991,351 |
| Woodside Energy Group, Ltd., ADR (A) | | | 75,860 | 1,514,924 |
| Financials 0.3% | | | 3,083,253 |
| Financial services 0.3% | | | |
| Berkshire Hathaway, Inc., Class B (B) | | | 7,332 | 3,083,253 |
| Health care 0.3% | | | 3,511,206 |
| Health care providers and services 0.3% | | | |
| Brookdale Senior Living, Inc. (B) | | | 531,196 | 3,511,206 |
| Industrials 2.9% | | | 31,267,362 |
| Construction and engineering 1.0% | | | |
| SHO-BOND Holdings Company, Ltd. | | | 49,500 | 2,080,941 |
| Vinci SA | | | 35,495 | 4,555,040 |
| WillScot Mobile Mini Holdings Corp. (B) | | | 83,006 | 3,859,779 |
| Electrical equipment 0.5% | | | |
| Array Technologies, Inc. (B) | | | 72,589 | 1,082,302 |
| Plug Power, Inc. (A)(B) | | | 27,777 | 95,553 |
| Sunrun, Inc. (A)(B) | | | 85,080 | 1,121,354 |
| Vestas Wind Systems A/S (B) | | | 113,853 | 3,175,771 |
| Ground transportation 0.3% | | | |
| Canadian National Railway Company | | | 26,877 | 3,539,220 |
| Industrial conglomerates 0.4% | | | |
| CK Hutchison Holdings, Ltd. | | | 383,932 | 1,847,730 |
| Keppel, Ltd. | | | 537,215 | 2,919,252 |
| Machinery 0.1% | | | |
| Chart Industries, Inc. (A)(B) | | | 6,917 | 1,139,368 |
| Trading companies and distributors 0.1% | | | |
| Yellow Cake PLC (B)(C) | | | 65,000 | 493,716 |
| Transportation infrastructure 0.5% | | | |
| Aena SME SA (C) | | | 20,377 | 4,013,335 |
| Shanghai International Airport Company, Ltd., Class A (B) | | | 272,300 | 1,344,001 |
| Information technology 1.2% | | | 12,961,789 |
| Electronic equipment, instruments and components 0.1% | | | |
| Advanced Energy Industries, Inc. | | | 6,766 | 689,997 |
| IT services 0.0% | | | |
| NEXTDC, Ltd. (B) | | | 52,698 | 610,442 |
| Semiconductors and semiconductor equipment 1.1% | | | |
| AIXTRON SE | | | 14,872 | 392,668 |
| 12 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Information technology (continued) | | | |
| Semiconductors and semiconductor equipment (continued) | | | |
| Analog Devices, Inc. | | | 9,798 | $1,937,946 |
| Enphase Energy, Inc. (B) | | | 15,978 | 1,933,018 |
| First Solar, Inc. (B) | | | 12,256 | 2,068,813 |
| ON Semiconductor Corp. (B) | | | 23,535 | 1,730,999 |
| Power Integrations, Inc. | | | 23,557 | 1,685,503 |
| SolarEdge Technologies, Inc. (B) | | | 14,950 | 1,061,151 |
| Wolfspeed, Inc. (A)(B) | | | 28,856 | 851,252 |
| Materials 17.7% | | | 192,477,644 |
| Chemicals 0.5% | | | |
| Air Liquide SA | | | 3,294 | 685,315 |
| Albemarle Corp. | | | 7,551 | 994,769 |
| Arcadium Lithium PLC (B) | | | 30,000 | 129,300 |
| Dow, Inc. | | | 11,859 | 686,992 |
| DuPont de Nemours, Inc. | | | 11,416 | 875,265 |
| LyondellBasell Industries NV, Class A | | | 6,063 | 620,124 |
| NanoXplore, Inc. (A)(B) | | | 174,300 | 328,127 |
| Nutrien, Ltd. | | | 19,185 | 1,042,283 |
| Nutrien, Ltd. (New York Stock Exchange) | | | 7,975 | 433,122 |
| Containers and packaging 0.2% | | | |
| Smurfit Kappa Group PLC | | | 36,000 | 1,645,351 |
| Metals and mining 16.6% | | | |
| Agnico Eagle Mines, Ltd. | | | 198,113 | 11,813,213 |
| Agnico Eagle Mines, Ltd. (New York Stock Exchange) (A) | | | 13,028 | 777,120 |
| Alamos Gold, Inc., Class A | | | 238,000 | 3,508,811 |
| Alcoa Corp. | | | 107,091 | 3,618,605 |
| Altius Minerals Corp. | | | 41,376 | 627,719 |
| Anglo American PLC | | | 45,622 | 1,124,253 |
| AngloGold Ashanti PLC (A) | | | 31,064 | 689,621 |
| Antofagasta PLC | | | 3,457 | 88,796 |
| Arch Resources, Inc. | | | 5,815 | 934,994 |
| Artemis Gold, Inc. (B) | | | 238,421 | 1,429,241 |
| Aya Gold & Silver, Inc. (A)(B) | | | 99,658 | 857,859 |
| B2Gold Corp. | | | 389,459 | 1,020,693 |
| Barrick Gold Corp. | | | 473,033 | 7,867,878 |
| BHP Group, Ltd., ADR (A) | | | 244,025 | 14,077,802 |
| Boliden AB | | | 30,598 | 849,634 |
| Bravo Mining Corp. (B) | | | 72,000 | 83,452 |
| Calibre Mining Corp. (A)(B) | | | 643,931 | 793,891 |
| Canada Nickel Company, Inc. (A)(B) | | | 825,000 | 852,682 |
| Capstone Copper Corp. (B) | | | 970,167 | 6,173,888 |
| Champion Iron, Ltd. (A) | | | 739,891 | 3,506,774 |
| Constellium SE (B) | | | 118,300 | 2,615,613 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 13 |
| | | | | Shares | Value |
| Materials (continued) | | | |
| Metals and mining (continued) | | | |
| Endeavour Mining PLC | | | 121,578 | $2,470,065 |
| ERO Copper Corp. (B) | | | 206,182 | 3,975,840 |
| Filo Corp. (B) | | | 90,500 | 1,580,100 |
| First Quantum Minerals, Ltd. | | | 322,345 | 3,464,873 |
| Foran Mining Corp. (B) | | | 235,000 | 721,716 |
| Franco-Nevada Corp. | | | 22,180 | 2,642,835 |
| Freeport-McMoRan, Inc. | | | 463,539 | 21,795,604 |
| Glencore PLC | | | 160,299 | 879,649 |
| Gold Fields, Ltd., ADR | | | 87,794 | 1,395,047 |
| Hudbay Minerals, Inc. | | | 639,609 | 4,476,389 |
| IGO, Ltd. | | | 170,000 | 783,266 |
| Iluka Resources, Ltd. | | | 90,600 | 425,831 |
| Ivanhoe Electric, Inc. (A)(B) | | | 106,050 | 1,039,290 |
| Ivanhoe Mines, Ltd., Class A (A)(B) | | | 503,735 | 6,009,640 |
| K92 Mining, Inc. (A)(B) | | | 205,720 | 956,802 |
| Karora Resources, Inc. (B) | | | 530,345 | 1,988,965 |
| Kinross Gold Corp. | | | 837,844 | 5,140,071 |
| Latin Resources, Ltd. (B) | | | 1,750,000 | 210,732 |
| Lithium Americas Argentina Corp. (B) | | | 44,400 | 238,955 |
| Lithium Americas Corp. (A)(B) | | | 44,400 | 298,284 |
| Lucara Diamond Corp. (B) | | | 420,070 | 97,687 |
| Lundin Gold, Inc. | | | 73,797 | 1,037,315 |
| Lundin Mining Corp. (A) | | | 321,069 | 3,285,236 |
| MAG Silver Corp. (B) | | | 51,275 | 540,932 |
| Nevada Copper Corp. (A)(B) | | | 265,550 | 19,604 |
| Newmont Corp. | | | 136,754 | 4,901,263 |
| Newmont Corp. (Toronto Stock Exchange) | | | 2,206 | 79,084 |
| Nickel 28 Capital Corp. (B) | | | 356,691 | 173,797 |
| Norsk Hydro ASA | | | 339,564 | 1,866,035 |
| Nouveau Monde Graphite, Inc. (A)(B) | | | 87,617 | 200,643 |
| Nucor Corp. | | | 4,956 | 980,792 |
| OceanaGold Corp. | | | 597,106 | 1,348,894 |
| Osisko Mining, Inc. (B) | | | 353,234 | 724,957 |
| Pan American Silver Corp. (A) | | | 166,066 | 2,503,464 |
| Pan American Silver Corp., CVR (B) | | | 83,300 | 37,318 |
| Piedmont Lithium, Inc. (A)(B) | | | 37,100 | 494,172 |
| Rio Tinto PLC, ADR (A) | | | 138,102 | 8,802,621 |
| Sandstorm Gold, Ltd. (A) | | | 27,979 | 146,655 |
| Seabridge Gold, Inc. (B) | | | 40,338 | 609,911 |
| Sierra Rutile Holdings, Ltd. (B) | | | 98,000 | 7,682 |
| Sigma Lithium Corp. (A)(B) | | | 37,900 | 491,325 |
| SilverCrest Metals, Inc. (A)(B) | | | 138,340 | 922,233 |
| Skeena Resources, Ltd. (A)(B) | | | 291,000 | 1,338,400 |
| 14 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Materials (continued) | | | |
| Metals and mining (continued) | | | |
| SolGold PLC (A)(B) | | | 2,609,000 | $356,329 |
| South32, Ltd. | | | 446,666 | 871,592 |
| Southern Copper Corp. (A) | | | 4,836 | 515,131 |
| Steel Dynamics, Inc. | | | 4,664 | 691,345 |
| Stornoway Diamond Corp. (B)(D) | | | 3,062,000 | 0 |
| Talon Metals Corp. (B) | | | 5,192,000 | 517,456 |
| Teck Resources, Ltd., Class B | | | 228,565 | 10,461,799 |
| Torex Gold Resources, Inc. (B) | | | 20,837 | 306,736 |
| Trilogy Metals, Inc. (B) | | | 696,952 | 344,733 |
| Triple Flag Precious Metals Corp. (A)(B) | | | 121,906 | 1,761,542 |
| U.S. Steel Corp. | | | 6,606 | 269,393 |
| Vale SA, ADR | | | 78,952 | 962,425 |
| Warrior Met Coal, Inc. | | | 22,324 | 1,355,067 |
| Wesdome Gold Mines, Ltd. (A)(B) | | | 123,889 | 922,845 |
| Wheaton Precious Metals Corp. (A) | | | 143,801 | 6,773,101 |
| Paper and forest products 0.4% | | | |
| Canfor Corp. (B) | | | 32,125 | 405,787 |
| Interfor Corp. (B) | | | 97,319 | 1,520,261 |
| West Fraser Timber Company, Ltd. | | | 29,937 | 2,584,941 |
| Real estate 34.0% | | | 371,169,250 |
| Diversified REITs 2.2% | | | |
| Charter Hall Group | | | 144,400 | 1,293,177 |
| Empire State Realty Trust, Inc., Class A | | | 817,598 | 8,282,268 |
| Essential Properties Realty Trust, Inc. | | | 284,604 | 7,587,543 |
| Land Securities Group PLC | | | 327,340 | 2,718,865 |
| Merlin Properties Socimi SA | | | 86,362 | 929,160 |
| Stockland | | | 1,155,026 | 3,649,729 |
| Health care REITs 2.8% | | | |
| American Healthcare REIT, Inc. | | | 369,539 | 5,450,700 |
| CareTrust REIT, Inc. | | | 305,284 | 7,439,771 |
| Welltower, Inc. | | | 185,437 | 17,327,233 |
| Hotel and resort REITs 0.9% | | | |
| Invincible Investment Corp. | | | 5,691 | 2,556,249 |
| Ryman Hospitality Properties, Inc. | | | 60,755 | 7,023,886 |
| Industrial REITs 4.8% | | | |
| CapitaLand Ascendas REIT | | | 975,906 | 2,001,854 |
| EastGroup Properties, Inc. | | | 23,259 | 4,181,270 |
| Goodman Group | | | 225,124 | 4,958,862 |
| Plymouth Industrial REIT, Inc. | | | 254,271 | 5,721,098 |
| Prologis, Inc. | | | 272,853 | 35,530,904 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 15 |
| | | | | Shares | Value |
| Real estate (continued) | | | |
| Office REITs 1.1% | | | |
| Kilroy Realty Corp. | | | 123,805 | $4,510,216 |
| SL Green Realty Corp. | | | 142,614 | 7,862,310 |
| Real estate management and development 4.8% | | | |
| Ayala Land, Inc. | | | 1,455,900 | 836,789 |
| CBRE Group, Inc., Class A (B) | | | 50,820 | 4,941,737 |
| Colliers International Group, Inc. | | | 11,902 | 1,454,811 |
| Corp. Inmobiliaria Vesta SAB de CV | | | 408,100 | 1,595,235 |
| Corp. Inmobiliaria Vesta SAB de CV, ADR (A) | | | 143,570 | 5,633,687 |
| CTP NV (C) | | | 139,946 | 2,496,482 |
| Daito Trust Construction Company, Ltd. | | | 23,250 | 2,652,423 |
| Emaar Properties PJSC | | | 968,206 | 2,148,719 |
| Kojamo OYJ (B) | | | 124,916 | 1,480,374 |
| Mitsubishi Estate Company, Ltd. | | | 82,400 | 1,503,469 |
| Mitsui Fudosan Company, Ltd. | | | 778,119 | 8,389,270 |
| Nomura Real Estate Holdings, Inc. | | | 54,800 | 1,548,172 |
| Pandox AB | | | 158,758 | 2,664,232 |
| PSP Swiss Property AG | | | 16,620 | 2,178,693 |
| Sagax AB, B Shares | | | 75,337 | 1,987,412 |
| Savills PLC | | | 81,386 | 1,096,565 |
| Swire Pacific, Ltd., Class A | | | 184,000 | 1,514,757 |
| TAG Immobilien AG (B) | | | 292,472 | 3,997,260 |
| The Wharf Holdings, Ltd. | | | 562,000 | 1,847,517 |
| Tokyu Fudosan Holdings Corp. | | | 311,836 | 2,519,466 |
| Residential REITs 4.8% | | | |
| American Homes 4 Rent, Class A | | | 249,688 | 9,183,525 |
| AvalonBay Communities, Inc. | | | 78,992 | 14,657,756 |
| Boardwalk Real Estate Investment Trust | | | 19,198 | 1,106,626 |
| Comforia Residential REIT, Inc. | | | 811 | 1,753,063 |
| Essex Property Trust, Inc. | | | 59,251 | 14,505,237 |
| Sun Communities, Inc. | | | 58,364 | 7,504,443 |
| The UNITE Group PLC | | | 74,308 | 919,209 |
| Veris Residential, Inc. | | | 201,289 | 3,061,606 |
| Retail REITs 5.7% | | | |
| Acadia Realty Trust | | | 250,170 | 4,255,392 |
| Brixmor Property Group, Inc. | | | 202,864 | 4,757,161 |
| Frasers Centrepoint Trust | | | 928,100 | 1,505,332 |
| Fukuoka REIT Corp. | | | 1,460 | 1,667,011 |
| Hammerson PLC | | | 5,073,789 | 1,912,117 |
| Klepierre SA | | | 107,386 | 2,779,756 |
| Lar Espana Real Estate Socimi SA | | | 203,280 | 1,585,782 |
| Link REIT | | | 665,891 | 2,867,601 |
| NETSTREIT Corp. | | | 191,200 | 3,512,344 |
| 16 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Real estate (continued) | | | |
| Retail REITs (continued) | | | |
| NewRiver REIT PLC | | | 1,157,186 | $1,183,031 |
| Phillips Edison & Company, Inc. | | | 127,488 | 4,572,995 |
| Shaftesbury Capital PLC | | | 1,667,644 | 3,027,005 |
| Simon Property Group, Inc. | | | 108,869 | 17,036,910 |
| Tanger, Inc. | | | 209,667 | 6,191,467 |
| The Macerich Company | | | 133,229 | 2,295,536 |
| Vicinity, Ltd. | | | 1,835,793 | 2,548,137 |
| Specialized REITs 6.9% | | | |
| American Tower Corp. | | | 29,751 | 5,878,500 |
| Big Yellow Group PLC | | | 12,001 | 161,016 |
| CubeSmart | | | 179,847 | 8,132,681 |
| Digital Core REIT Management Pte, Ltd. | | | 2,963,500 | 1,777,984 |
| Digital Realty Trust, Inc. | | | 74,869 | 10,784,131 |
| Equinix, Inc. | | | 31,539 | 26,030,083 |
| Extra Space Storage, Inc. | | | 56,886 | 8,362,242 |
| Iron Mountain, Inc. | | | 84,733 | 6,796,434 |
| Lamar Advertising Company, Class A | | | 35,667 | 4,258,996 |
| VICI Properties, Inc. | | | 103,591 | 3,085,976 |
| Utilities 5.4% | | | 59,285,737 |
| Electric utilities 2.6% | | | |
| American Electric Power Company, Inc. | | | 36,267 | 3,122,589 |
| Constellation Energy Corp. | | | 13,408 | 2,478,469 |
| Duke Energy Corp. | | | 28,610 | 2,766,873 |
| Edison International | | | 45,035 | 3,185,326 |
| EDP - Energias de Portugal SA | | | 229,955 | 897,203 |
| Enel SpA | | | 439,521 | 2,901,506 |
| Exelon Corp. | | | 75,725 | 2,844,988 |
| FirstEnergy Corp. | | | 55,176 | 2,130,897 |
| Iberdrola SA | | | 238,748 | 2,965,345 |
| NextEra Energy, Inc. | | | 43,139 | 2,757,013 |
| The Kansai Electric Power Company, Inc. | | | 141,000 | 2,011,903 |
| Gas utilities 0.3% | | | |
| Atmos Energy Corp. | | | 26,829 | 3,189,163 |
| Independent power and renewable electricity producers 0.8% | | | |
| Brookfield Renewable Corp., Class A | | | 23,486 | 577,051 |
| Brookfield Renewable Partners LP | | | 89,574 | 2,080,804 |
| RWE AG | | | 102,634 | 3,488,254 |
| Vistra Corp. | | | 44,131 | 3,073,724 |
| Multi-utilities 1.4% | | | |
| Dominion Energy, Inc. | | | 55,914 | 2,750,410 |
| Engie SA | | | 236,375 | 3,961,032 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 17 |
| | | | | Shares | Value |
| Utilities (continued) | | | |
| Multi-utilities (continued) | | | |
| National Grid PLC | | | 247,305 | $3,332,185 |
| Public Service Enterprise Group, Inc. | | | 38,582 | 2,576,506 |
| Sempra | | | 44,130 | 3,169,858 |
| Water utilities 0.3% | | | |
| Cia de Saneamento Basico do Estado de Sao Paulo | | | 179,100 | 3,024,638 |
|
| | Yield* (%) | Maturity date | | Par value^ | Value |
| Short-term investments 3.7% | | | | | $40,429,823 |
| (Cost $40,431,318) | | | | | |
| U.S. Government Agency 0.2% | | | | | 1,898,906 |
| Federal Home Loan Bank Discount Note | 5.150 | 04-01-24 | | 1,900,000 | 1,898,906 |
| | | Yield (%) | | Shares | Value |
| Short-term funds 3.0% | | | | | 33,430,917 |
| John Hancock Collateral Trust (E) | 5.2975(F) | | 3,343,961 | 33,430,917 |
| | | | | Par value^ | Value |
| Repurchase agreement 0.5% | | | | | 5,100,000 |
| Bank of America Corp. Tri-Party Repurchase Agreement dated 3-28-24 at 5.330% to be repurchased at $2,601,540 on 4-1-24, collateralized by $69,916 Federal Home Loan Mortgage Corp., 1.500% due 6-1-36 (valued at $61,065), $4,019 Federal National Mortgage Association, 4.000% - 5.500% due 8-1-26 to 12-1-34 (valued at $4,077) and $2,478,347 Government National Mortgage Association, 5.873% - 7.000% due 7-20-53 to 4-20-73 (valued at $2,586,859) | | | | 2,600,000 | 2,600,000 |
| Goldman Sachs Tri-Party Repurchase Agreement dated 3-28-24 at 5.320% to be repurchased at $2,501,478 on 4-1-24, collateralized by $2,514,346 Federal National Mortgage Association, 2.500% - 5.000% due 8-1-31 to 7-25-45 (valued at $2,244,000) and $365,772 Government National Mortgage Association, 2.720% due 3-15-64 (valued at $306,000) | | | | 2,500,000 | 2,500,000 |
|
| Total investments (Cost $859,668,186) 103.1% | | | $1,124,399,561 |
| Other assets and liabilities, net (3.1%) | | | | (33,573,904) |
| Total net assets 100.0% | | | | | $1,090,825,657 |
| 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. |
| 18 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| CVR | Contingent Value Right |
| (A) | All or a portion of this security is on loan as of 3-31-24. |
| (B) | Non-income producing security. |
| (C) | 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. |
| (D) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
| (E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
| (F) | The rate shown is the annualized seven-day yield as of 3-31-24. |
| * | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
At 3-31-24, the aggregate cost of investments for federal income tax purposes was $891,516,495. Net unrealized appreciation aggregated to $232,883,066, of which $256,643,741 related to gross unrealized appreciation and $23,760,675 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 19 |
STATEMENT OF ASSETS AND LIABILITIES 3-31-24
| Assets | |
| Unaffiliated investments, at value (Cost $826,236,868) including $40,082,808 of securities loaned | $1,090,968,644 |
| Affiliated investments, at value (Cost $33,431,318) | 33,430,917 |
| Total investments, at value (Cost $859,668,186) | 1,124,399,561 |
| Cash | 1,006,894 |
| Foreign currency, at value (Cost $601,403) | 601,560 |
| Dividends and interest receivable | 2,916,187 |
| Receivable for fund shares sold | 10,364 |
| Receivable for investments sold | 247,085 |
| Receivable for securities lending income | 31,433 |
| Other assets | 75,208 |
| Total assets | 1,129,288,292 |
| Liabilities | |
| Payable for investments purchased | 168,626 |
| Payable for fund shares repurchased | 4,652,086 |
| Payable upon return of securities loaned | 33,416,528 |
| Payable to affiliates | |
| Accounting and legal services fees | 46,259 |
| Trustees’ fees | 2,727 |
| Other liabilities and accrued expenses | 176,409 |
| Total liabilities | 38,462,635 |
| Net assets | $1,090,825,657 |
| Net assets consist of | |
| Paid-in capital | $871,773,910 |
| Total distributable earnings (loss) | 219,051,747 |
| Net assets | $1,090,825,657 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class NAV ($1,090,825,657 ÷ 90,557,756 shares) | $12.05 |
| 20 | JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 3-31-24
| Investment income | |
| Dividends | $32,590,378 |
| Interest | 478,039 |
| Securities lending | 509,196 |
| Less foreign taxes withheld | (1,654,721) |
| Total investment income | 31,922,892 |
| Expenses | |
| Investment management fees | 8,756,916 |
| Accounting and legal services fees | 214,873 |
| Trustees’ fees | 26,762 |
| Custodian fees | 390,499 |
| Printing and postage | 20,909 |
| Professional fees | 135,912 |
| Other | 66,987 |
| Total expenses | 9,612,858 |
| Less expense reductions | (591,572) |
| Net expenses | 9,021,286 |
| Net investment income | 22,901,606 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | (11,734,031) |
| Affiliated investments | 20,570 |
| | (11,713,461) |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 93,622,407 |
| Affiliated investments | (19,942) |
| | 93,602,465 |
| Net realized and unrealized gain | 81,889,004 |
| Increase in net assets from operations | $104,790,610 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 21 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
3-31-24 | Year ended
3-31-23 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $22,901,606 | $27,583,015 |
| Net realized loss | (11,713,461) | (1,138,431) |
| Change in net unrealized appreciation (depreciation) | 93,602,465 | (134,018,236) |
| Increase (decrease) in net assets resulting from operations | 104,790,610 | (107,573,652) |
| Distributions to shareholders | | |
| From earnings | | |
| Class NAV | (24,863,170) | (58,975,191) |
| Total distributions | (24,863,170) | (58,975,191) |
| From fund share transactions | (51,592,152) | 78,262,845 |
| Total increase (decrease) | 28,335,288 | (88,285,998) |
| Net assets | | |
| Beginning of year | 1,062,490,369 | 1,150,776,367 |
| End of year | $1,090,825,657 | $1,062,490,369 |
| 22 | JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS NAV SHARES Period ended | 3-31-24 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 |
| Per share operating performance | | | | | |
| Net asset value, beginning of period | $11.19 | $13.28 | $10.10 | $6.61 | $10.01 |
| Net investment income1 | 0.25 | 0.31 | 0.25 | 0.18 | 0.20 |
| Net realized and unrealized gain (loss) on investments | 0.89 | (1.73) | 3.23 | 3.54 | (3.16) |
| Total from investment operations | 1.14 | (1.42) | 3.48 | 3.72 | (2.96) |
| Less distributions | | | | | |
| From net investment income | (0.28) | (0.28) | (0.30) | (0.23) | (0.28) |
| From net realized gain | — | (0.39) | — | — | (0.16) |
| Total distributions | (0.28) | (0.67) | (0.30) | (0.23) | (0.44) |
| Net asset value, end of period | $12.05 | $11.19 | $13.28 | $10.10 | $6.61 |
| Total return (%)2 | 10.30 | (10.55) | 34.95 | 56.64 | (30.92) |
| Ratios and supplemental data | | | | | |
| Net assets, end of period (in millions) | $1,091 | $1,062 | $1,151 | $963 | $684 |
| Ratios (as a percentage of average net assets): | | | | | |
| Expenses before reductions | 0.93 | 0.92 | 0.91 | 0.93 | 0.93 |
| Expenses including reductions | 0.88 | 0.87 | 0.85 | 0.87 | 0.87 |
| Net investment income | 2.22 | 2.65 | 2.20 | 2.07 | 2.05 |
| Portfolio turnover (%) | 51 | 60 | 49 | 82 | 61 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 23 |
Notes to financial statements
Note 1—Organization
John Hancock Diversified Real Assets Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek a long-term total return in excess of inflation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the 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. Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee,
| 24 | JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT | |
following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of March 31, 2024, by major security category or type:
| | Total
value at
3-31-24 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Communication services | $9,929,065 | — | $9,929,065 | — |
| Consumer discretionary | 19,467,854 | $10,429,935 | 9,037,919 | — |
| Consumer staples | 887,677 | 887,677 | — | — |
| Energy | 379,928,901 | 306,096,647 | 73,832,254 | — |
| Financials | 3,083,253 | 3,083,253 | — | — |
| Health care | 3,511,206 | 3,511,206 | — | — |
| Industrials | 31,267,362 | 10,837,576 | 20,429,786 | — |
| Information technology | 12,961,789 | 11,958,679 | 1,003,110 | — |
| Materials | 192,477,644 | 183,039,508 | 9,438,136 | — |
| Real estate | 371,169,250 | 288,917,475 | 82,251,775 | — |
| Utilities | 59,285,737 | 39,728,309 | 19,557,428 | — |
| Short-term investments | 40,429,823 | 33,430,917 | 6,998,906 | — |
| Total investments in securities | $1,124,399,561 | $891,921,182 | $232,478,379 | — |
| Level 3 includes securities valued at $0. Refer to Fund’s investments. |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund’s custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund’s investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement
| | ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 25 |
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.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund may invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT is a prime money market fund and invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions on the loaned securities, as well as interest on such amounts. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of March 31, 2024, the fund loaned securities valued at $40,082,808 and received $33,416,528 of cash collateral.
| 26 | JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT | |
In addition, non-cash collateral of approximately $8,423,028 in the form of U.S. Treasuries was pledged to the fund. This non-cash collateral is not reflected in the fund’s net assets, however could be sold by the securities lending agent in the event of default by the borrower.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. Commitment fees for the year ended March 31, 2024 were $6,917.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of March 31, 2024, the fund has a short-term capital loss carryforward of $21,985,044 available to offset future net realized capital gains. This carryforward does not expire.
As of March 31, 2024, 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.
| | ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 27 |
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended March 31, 2024 and 2023 was as follows:
| | March 31, 2024 | March 31, 2023 |
| Ordinary income | $24,863,170 | $24,583,516 |
| Long-term capital gains | — | 34,391,675 |
| Total | $24,863,170 | $58,975,191 |
As of March 31, 2024, the components of distributable earnings on a tax basis consisted of $8,163,330 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals and investments in passive foreign investment companies.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.850% of the first $2 billion of the fund’s average daily net assets and (b) 0.800% of the fund’s average daily net assets in excess of $2 billion. The Advisor has subadvisory agreements with Manulife Investment Management (North America) Limited and Wellington Management Company LLP. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended March 31, 2024, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement 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.
| 28 | JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT | |
The Advisor contractually agrees to reduce its management fee by an annual rate of 0.05% of the fund’s average daily net assets. This agreement expires on July 31, 2024, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The expense reductions described above amounted to $591,572 for the year ended March 31, 2024.
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended March 31, 2024, were equivalent to a net annual effective rate of 0.79% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These accounting and legal services fees incurred, for the year ended March 31, 2024, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. Interest expense is 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 | $2,233,333 | 3 | 5.812% | $(1,082) |
| Lender | $2,150,000 | 2 | 5.671% | $677 |
Note 5—Fund share transactions
Transactions in fund shares for the years ended March 31, 2024 and 2023 were as follows:
| | Year Ended 3-31-24 | Year Ended 3-31-23 |
| | Shares | Amount | Shares | Amount |
| Class NAV shares | | | | |
| Sold | 3,424,907 | $38,227,153 | 11,853,285 | $132,278,372 |
| Distributions reinvested | 2,156,389 | 24,863,170 | 5,435,501 | 58,975,191 |
| Repurchased | (10,003,027) | (114,682,475) | (8,994,273) | (112,990,718) |
| Net increase (decrease) | (4,421,731) | $(51,592,152) | 8,294,513 | $78,262,845 |
| Total net increase (decrease) | (4,421,731) | $(51,592,152) | 8,294,513 | $78,262,845 |
Affiliates of the fund owned 100% of shares of Class NAV on March 31, 2024. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
| | ANNUAL REPORT | JOHN HANCOCK Diversified Real Assets Fund | 29 |
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $522,723,456 and $569,105,260, respectively, for the year ended March 31, 2024.
Note 7—Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
REITs, pooled investment vehicles that typically invest in real estate directly or in loans collateralized by real estate, carry risks associated with owning real estate, including the potential for a decline in value due to economic or market conditions. Securities of companies in the real estate industry carry risks associated with owning real estate, including the potential for a decline in value due to economic or market conditions.
Note 8—Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At March 31, 2024, funds within the John Hancock group of funds complex held 100.0% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
| Fund | Affiliated Concentration |
| John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 33.1% |
| John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 22.2% |
| John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 15.1% |
| John Hancock Funds II Multimanager 2030 Lifetime Portfolio | 6.4% |
| John Hancock Funds II Multimanager 2025 Lifetime Portfolio | 6.0% |
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* | 3,343,961 | $49,272,079 | $289,925,380 | $(305,767,170) | $20,570 | $(19,942) | $509,196 | — | $33,430,917 |
| * | Refer to the Securities lending note within Note 2 for details regarding this investment. |
| 30 | JOHN HANCOCK Diversified Real Assets Fund | ANNUAL REPORT | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Diversified Real Assets Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Diversified Real Assets Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the "Fund") as of March 31, 2024, the related statement of operations for the year ended March 31, 2024, the statements of changes in net assets for each of the two years in the period ended March 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2024 and the financial highlights for each of the five years in the period ended March 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2024 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 8, 2024
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 31 |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended March 31, 2024.
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 2024 Form 1099-DIV in early 2025. This will reflect the tax character of all distributions paid in calendar year 2024.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| 32 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT
Operation of the Liquidity Risk Management Program
This section describes the operation and effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Diversified Real Assets Fund, subject to the oversight of the Board. In order to provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund’s subadvisors, Manulife Investment Management (North America) Limited (Manulife IM (NA)) and Wellington Management Company LLP (Wellington) (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor and the Board.
The Committee receives monthly reports and holds quarterly in person meetings to review: (1) the current market liquidity environment; (2) new Funds, redemption-in-kind activity reports, liquidity facility usage and other Fund events; (3) monthly liquidity risk assessments of all Funds in the LRMP (which includes illiquid investment monitoring); (4) monthly Fund-level liquidity classifications; (5) quarterly review of Primarily Highly Liquid Fund testing, Highly Liquid Investment Minimum (HLIM) determinations and Reasonably Anticipated Trade Size (RATS) recalibration reports; and (6) other LRMP related material. The Advisor utilizes a third-party vendor on behalf of the Funds, as the liquidity analytics provider. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential liquidity issues. The Committee also monitors and receives regular updates on U.S. and global events, such as the U.S. regional bank crisis, the U.S. government debt ceiling showdown, commercial real estate loans and the Israel/Hamas war that could impact financial markets and overall market liquidity. The Committee also participates in industry group discussions on current market events, operational challenges resulting from regulatory changes and proposals.
The Committee provided the Board at a meeting held on March 25-28, 2024 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any material changes to the LRMP. The report, which covered the period January 1, 2023 through December 31, 2023, included an assessment of important aspects of the LRMP including, but not limited to: (1) key governance functions and personnel; (2) the Funds’ Rule 22e-4 Policy and written LRMP; (3) the design and implementation of required LRMP elements; (4) subadvisor integration; (5) the appropriateness of each Fund’s investment strategy for an open-end fund structure; and (6) other pertinent information used to evaluate the adequacy and effectiveness of the LRMP.
The report provided an update on Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2023 and key initiatives for 2024.
The report also covered material liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part, that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 33 |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
| • | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
Adequacy and Effectiveness
Based on the annual review and assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of the Fund.
| 34 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 183 |
| 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 | 178 |
| 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 | 180 |
| 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 | 178 |
| 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), Board Member, Congressional Black Caucus Foundation (since 2024). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 183 |
| 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). |
| | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | 35 |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Dean C. Garfield, Born: 1968 | 2022 | 178 |
| 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). |
| Deborah C. Jackson, Born: 1952 | 2008 | 181 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (2011-2023); 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 | 178 |
| 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 | 178 |
| 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 | 178 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| 36 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
| Non-Independent 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 | 180 |
| 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 (2005-2023, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (2006-2023, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (2004-2023, 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 | 178 |
| 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); Director and Chairman, John Hancock Investment Management LLC (since 2023); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2023); Director and Chairman, John Hancock Investment Management Distributors LLC (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 DIVERSIFIED REAL ASSETS FUND | 37 |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee 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. |
| | |
| | |
| 38 | JOHN HANCOCK DIVERSIFIED REAL ASSETS FUND | ANNUAL REPORT | |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Noni L. Ellison
Grace K. Fey
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 (North America) Limited (Manulife IM (NA))
Wellington Management Company LLP (Wellington)
Portfolio Managers
The Investment Management Teams at
Manulife IM (NA) and Wellington
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
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 DIVERSIFIED REAL ASSETS FUND | 39 |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
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Small Cap Core
Small Cap Dynamic 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
Corporate Bond ETF
Disciplined Value International Select ETF
Dynamic Municipal Bond ETF
Fundamental All Cap Core ETF
International High Dividend ETF
Mortgage-Backed Securities ETF
Multifactor Developed International ETF
Multifactor Emerging Markets ETF
Multifactor Large Cap ETF
Multifactor Mid Cap ETF
Multifactor Small Cap ETF
Preferred Income ETF
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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We search the world to find proven portfolio teams with specialized
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Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Diversified Real Assets Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2024
Annual report
John Hancock
Fundamental Equity Income Fund
U.S. equity
March 31, 2024
Beginning on July 24, 2024, as required by regulations adopted by the U.S. Securities and Exchange Commission, open-end mutual funds and ETFs will transmit tailored annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in shareholder reports transmitted to shareholders, but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR.
A message to shareholders
Dear shareholder,
U.S. stocks posted gains during the 12 months ended March 31, 2024. The beginning of the period brought weak returns, as concerns that interest rates would need to stay higher for longer led to an increase in bond yields and weighed heavily on investor sentiment through late October 2023. Encouraging inflation and consumer spending data, however, fueled optimism. Growing investor enthusiasm for artificial intelligence also bolstered the market, with notable outperformance from several large technology-related stocks. The U.S. Federal Reserve hinted at the end of the calendar year that it may begin to cut interest rates in 2024, but cooled somewhat toward the end of the reporting period as inflation remained elevated.
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 Equity Income Fund
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation and current income.
TOTAL RETURNS AS OF 3/31/2024 (%)
The Russell 1000 Value Index tracks the performance of publicly traded large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The 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. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
U.S. stocks surged
Investor enthusiasm around generative artificial intelligence, signs the U.S. Federal Reserve was done raising interest rates and economic resilience drove U.S. stocks sharply higher.
The fund outpaced the Russell 1000 Value Index
Security selection drove the fund’s relative performance, notably in the consumer discretionary, information technology, and communication services sectors.
Stock picks in real estate detracted
Investment choices in the real estate sector, positioning in industrials, and a cash position hindered performance.
SECTOR COMPOSITION AS OF 3/31/2024 (% 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 FUNDAMENTAL EQUITY INCOME FUND | 3 |
Management’s discussion of fund performance
What drove the U.S. stock market’s return for the 12 months ended March 31, 2024?
U.S. stocks rallied sharply, helped by a resilient economy, easing inflation, and better-than-expected corporate earnings. Investor enthusiasm around generative artificial intelligence plus signs that the U.S. Federal Reserve (Fed) was done raising interest rates and might cut them in 2024 further encouraged investors. These tailwinds outweighed the negative impact of inflation that stayed above the Fed’s target, still relatively high interest rates, and conflicts in the Middle East and Ukraine.
How did the fund perform?
The fund outpaced its benchmark, helped most by stock picks particularly in the consumer discretionary, information technology, and communication services sectors. Additional contributors were an overweight in the financials sector and a lack of exposure to the utilities sector. Top individual contributors included private equity firm KKR & Company, Inc., which benefited from expectations of lower interest rates, stock market appreciation, and better-than-expected earnings. Within consumer discretionary, shares of U.S. homebuilder Lennar Corp. rose sharply, buoyed by the prospect of lower interest rates and a favorable supply/demand outlook for the housing market. Lastly, the stock of Oracle Corp. gained from
TOP 10 HOLDINGS
AS OF 3/31/2024 (% of net assets) |
| Crown Castle, Inc. | 4.9 |
| Elevance Health, Inc. | 4.1 |
| Nasdaq, Inc. | 3.4 |
| GSK PLC, ADR | 3.4 |
| Oracle Corp. | 3.2 |
| Citigroup, Inc. | 3.1 |
| Bristol-Myers Squibb Company | 2.9 |
| Kinder Morgan, Inc. | 2.8 |
| Walmart, Inc. | 2.7 |
| Suncor Energy, Inc. | 2.7 |
| TOTAL | 33.2 |
| Cash and cash equivalents are not included. |
COUNTRY COMPOSITION
AS OF 3/31/2024 (% of net assets) |
| United States | 88.6 |
| United Kingdom | 4.8 |
| Canada | 2.7 |
| France | 2.2 |
| Other countries | 1.7 |
| TOTAL | 100.0 |
| 4 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
growth of the software giant’s new cloud solutions business. Each of these stocks was an overweight.
Which investment choices hindered relative performance?
Security selection and an overweight in the real estate sector, stock picks and an underweight in industrials and a cash position hampered performance versus the Russell 1000 Value index. Among individual detractors was an overweight in shipping giant United Parcel Service, Inc., which fell sharply due to decreased volumes, revenue, and operating profits in 2023, which management attributed to large customers scaling back on inventory amid economic uncertainty. Concern about possible disruptions reaching a labor union agreement also pressured the stock. Within real estate, overweights in cell tower companies Crown Castle, Inc. and American Tower Corp. detracted as high interest rates impeded their ability to finance future acquisitions. In addition, Crown Castle was pressured by uncertainty due to activist involvement, the search for a new CEO and questions about how it might unlock value from its fiber business. American Tower faced challenges in some international markets.
Emory W. Sanders, Jr., CFA
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2024
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | Since
inception
(6-28-22) | Since
inception
(6-28-22) |
| Class I1 | 22.42 | 17.95 | 33.71 |
| Index† | 20.27 | 13.93 | 25.79 |
Performance figures assume all distributions have been reinvested. Sales charges are not applicable to Class I shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 2024 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
| | Class I |
| Gross (%) | 4.33 |
| Net (%) | 0.82 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for the class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. 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 1000 Value Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
This chart shows what happened to a hypothetical $10,000 investment in John Hancock Fundamental Equity Income Fund for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the Russell 1000 Value Index.
The Russell 1000 Value Index tracks the performance of publicly traded large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | For certain types of investors, as described in the fund’s prospectus. |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at March 31, 2024, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
10-1-2023 | Ending
value on
3-31-2024 | Expenses
paid during
period ended
3-31-20241 | Annualized
expense
ratio |
| Class I | Actual expenses/actual returns | $1,000.00 | $1,216.10 | $4.60 | 0.83% |
| | Hypothetical example | 1,000.00 | 1,020.90 | 4.19 | 0.83% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 9 |
AS OF 3-31-24
| | | | | Shares | Value |
| Common stocks 93.9% | | | | | $9,062,178 |
| (Cost $7,801,723) | | | | | |
| Communication services 4.2% | | | 407,476 |
| Entertainment 0.3% | | | |
| Warner Brothers Discovery, Inc. (A) | | | 3,412 | 29,787 |
| Interactive media and services 2.2% | | | |
| Alphabet, Inc., Class A (A) | | | 1,058 | 159,684 |
| Meta Platforms, Inc., Class A | | | 114 | 55,356 |
| Media 1.7% | | | |
| Comcast Corp., Class A | | | 3,752 | 162,649 |
| Consumer discretionary 7.2% | | | 693,018 |
| Automobile components 0.9% | | | |
| Mobileye Global, Inc., Class A (A) | | | 2,748 | 88,348 |
| Broadline retail 1.2% | | | |
| Amazon.com, Inc. (A) | | | 159 | 28,680 |
| eBay, Inc. | | | 1,572 | 82,970 |
| Hotels, restaurants and leisure 2.1% | | | |
| Vail Resorts, Inc. | | | 918 | 204,558 |
| Household durables 2.1% | | | |
| Lennar Corp., Class A | | | 1,190 | 204,656 |
| Specialty retail 0.9% | | | |
| Lowe’s Companies, Inc. | | | 329 | 83,806 |
| Consumer staples 8.4% | | | 806,425 |
| Beverages 0.9% | | | |
| Anheuser-Busch InBev SA/NV, ADR | | | 1,327 | 80,655 |
| Consumer staples distribution and retail 2.7% | | | |
| Walmart, Inc. | | | 4,346 | 261,499 |
| Food products 2.2% | | | |
| Danone SA, ADR | | | 16,470 | 213,287 |
| Household products 1.2% | | | |
| Reynolds Consumer Products, Inc. | | | 4,037 | 115,297 |
| Personal care products 1.4% | | | |
| Haleon PLC, ADR | | | 15,982 | 135,687 |
| Energy 8.1% | | | 784,533 |
| Oil, gas and consumable fuels 8.1% | | | |
| Cheniere Energy, Inc. | | | 1,254 | 202,245 |
| Kinder Morgan, Inc. | | | 14,870 | 272,716 |
| Suncor Energy, Inc. | | | 6,986 | 257,853 |
| Valero Energy Corp. | | | 303 | 51,719 |
| 10 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Financials 22.3% | | | $2,150,196 |
| Banks 7.3% | | | |
| Bank of America Corp. | | | 5,147 | 195,174 |
| Citigroup, Inc. | | | 4,642 | 293,560 |
| First Hawaiian, Inc. | | | 4,122 | 90,519 |
| Wells Fargo & Company | | | 2,190 | 126,932 |
| Capital markets 13.8% | | | |
| KKR & Company, Inc. | | | 2,358 | 237,168 |
| Morgan Stanley | | | 2,707 | 254,891 |
| Nasdaq, Inc. | | | 5,250 | 331,275 |
| S&P Global, Inc. | | | 287 | 122,104 |
| State Street Corp. | | | 2,482 | 191,908 |
| The Goldman Sachs Group, Inc. | | | 460 | 192,137 |
| Consumer finance 1.2% | | | |
| American Express Company | | | 503 | 114,528 |
| Health care 16.8% | | | 1,619,389 |
| Biotechnology 3.8% | | | |
| Gilead Sciences, Inc. | | | 3,438 | 251,834 |
| Moderna, Inc. (A) | | | 1,073 | 114,339 |
| Health care equipment and supplies 1.1% | | | |
| Becton, Dickinson and Company | | | 449 | 111,105 |
| Health care providers and services 4.1% | | | |
| Elevance Health, Inc. | | | 757 | 392,537 |
| Life sciences tools and services 1.0% | | | |
| Thermo Fisher Scientific, Inc. | | | 163 | 94,737 |
| Pharmaceuticals 6.8% | | | |
| Bristol-Myers Squibb Company | | | 5,094 | 276,248 |
| GSK PLC, ADR | | | 7,603 | 325,941 |
| Merck & Company, Inc. | | | 399 | 52,648 |
| Industrials 6.9% | | | 671,012 |
| Aerospace and defense 1.6% | | | |
| RTX Corp. | | | 1,581 | 154,195 |
| Air freight and logistics 1.7% | | | |
| United Parcel Service, Inc., Class B | | | 1,138 | 169,141 |
| Electrical equipment 1.1% | | | |
| Regal Rexnord Corp. | | | 589 | 106,079 |
| Ground transportation 1.1% | | | |
| Union Pacific Corp. | | | 437 | 107,471 |
| Trading companies and distributors 1.4% | | | |
| United Rentals, Inc. | | | 186 | 134,126 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 11 |
| | | | | Shares | Value |
| Information technology 8.9% | | | $857,950 |
| Semiconductors and semiconductor equipment 3.7% | | | |
| Analog Devices, Inc. | | | 999 | 197,592 |
| Texas Instruments, Inc. | | | 907 | 158,008 |
| Software 5.2% | | | |
| Microsoft Corp. | | | 453 | 190,586 |
| Oracle Corp. | | | 2,482 | 311,764 |
| Materials 2.5% | | | 241,585 |
| Chemicals 2.5% | | | |
| LyondellBasell Industries NV, Class A | | | 2,362 | 241,585 |
| Real estate 8.6% | | | 830,594 |
| Specialized REITs 8.6% | | | |
| American Tower Corp. | | | 1,225 | 242,048 |
| Crown Castle, Inc. | | | 4,460 | 472,002 |
| Lamar Advertising Company, Class A | | | 976 | 116,544 |
|
| | | Yield (%) | | Shares | Value |
| Short-term investments 6.3% | | | | | $609,614 |
| (Cost $609,588) | | | | | |
| Short-term funds 6.3% | | | | | 609,614 |
| John Hancock Collateral Trust (B) | 5.2975(C) | | 60,977 | 609,614 |
|
| Total investments (Cost $8,411,311) 100.2% | | | $9,671,792 |
| Other assets and liabilities, net (0.2%) | | | | (21,768) |
| Total net assets 100.0% | | | | | $9,650,024 |
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
| Security Abbreviations and Legend |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| (B) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
| (C) | The rate shown is the annualized seven-day yield as of 3-31-24. |
At 3-31-24, the aggregate cost of investments for federal income tax purposes was $8,418,431. Net unrealized appreciation aggregated to $1,253,361, of which $1,418,602 related to gross unrealized appreciation and $165,241 related to gross unrealized depreciation.
| 12 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF ASSETS AND LIABILITIES 3-31-24
| Assets | |
| Unaffiliated investments, at value (Cost $7,801,723) | $9,062,178 |
| Affiliated investments, at value (Cost $609,588) | 609,614 |
| Total investments, at value (Cost $8,411,311) | 9,671,792 |
| Dividends and interest receivable | 14,390 |
| Receivable from affiliates | 158 |
| Other assets | 323 |
| Total assets | 9,686,663 |
| Liabilities | |
| Payable to affiliates | |
| Accounting and legal services fees | 269 |
| Transfer agent fees | 930 |
| Trustees’ fees | 13 |
| Other liabilities and accrued expenses | 35,427 |
| Total liabilities | 36,639 |
| Net assets | $9,650,024 |
| Net assets consist of | |
| Paid-in capital | $8,148,095 |
| Total distributable earnings (loss) | 1,501,929 |
| Net assets | $9,650,024 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class I ($9,650,024 ÷ 778,359 shares) | $12.40 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 13 |
STATEMENT OF OPERATIONS For the year ended 3-31-24
| Investment income | |
| Dividends | $177,960 |
| Dividends from affiliated investments | 21,323 |
| Less foreign taxes withheld | (2,248) |
| Total investment income | 197,035 |
| Expenses | |
| Investment management fees | 43,157 |
| Accounting and legal services fees | 1,542 |
| Transfer agent fees | 8,741 |
| Trustees’ fees | 633 |
| Custodian fees | 14,047 |
| Printing and postage | 14,791 |
| Professional fees | 36,153 |
| Other | 11,881 |
| Total expenses | 130,945 |
| Less expense reductions | (71,131) |
| Net expenses | 59,814 |
| Net investment income | 137,221 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 501,834 |
| Affiliated investments | 102 |
| | 501,936 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments | 906,116 |
| Affiliated investments | (18) |
| | 906,098 |
| Net realized and unrealized gain | 1,408,034 |
| Increase in net assets from operations | $1,545,255 |
| 14 | JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
3-31-24 | Period ended
3-31-231 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment income | $137,221 | $68,462 |
| Net realized gain | 501,936 | 48,996 |
| Change in net unrealized appreciation (depreciation) | 906,098 | 354,383 |
| Increase in net assets resulting from operations | 1,545,255 | 471,841 |
| Distributions to shareholders | | |
| From earnings | | |
| Class I | (446,978) | (73,690) |
| Total distributions | (446,978) | (73,690) |
| From fund share transactions | 1,901,943 | 6,251,653 |
| Total increase | 3,000,220 | 6,649,804 |
| Net assets | | |
| Beginning of year | 6,649,804 | — |
| End of year | $9,650,024 | $6,649,804 |
| 1 | Period from 6-28-22 (commencement of operations) to 3-31-23. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 15 |
| CLASS I SHARES Period ended | 3-31-24 | 3-31-231 |
| Per share operating performance | | |
| Net asset value, beginning of period | $10.77 | $10.00 |
| Net investment income2 | 0.21 | 0.13 |
| Net realized and unrealized gain (loss) on investments | 2.14 | 0.78 |
| Total from investment operations | 2.35 | 0.91 |
| Less distributions | | |
| From net investment income | (0.20) | (0.14) |
| From net realized gain | (0.52) | — |
| Total distributions | (0.72) | (0.14) |
| Net asset value, end of period | $12.40 | $10.77 |
| Total return (%)3 | 22.42 | 9.224 |
| Ratios and supplemental data | | |
| Net assets, end of period (in millions) | $10 | $7 |
| Ratios (as a percentage of average net assets): | | |
| Expenses before reductions | 1.82 | 4.255 |
| Expenses including reductions | 0.83 | 0.825 |
| Net investment income | 1.91 | 1.726 |
| Portfolio turnover (%) | 34 | 26 |
| 1 | Period from 6-28-22 (commencement of operations) to 3-31-23. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Not annualized. |
| 5 | Annualized. Certain expenses are presented unannualized. |
| 6 | Annualized. |
| 16 | JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock Fundamental Equity Income Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation and current income.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class I shares are offered to institutions and certain investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
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.
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 Fundamental Equity Income Fund | 17 |
valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of March 31, 2024, 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 investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
| 18 | JOHN HANCOCK Fundamental Equity Income 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 March 31, 2024, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends quarterly. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the year ended March 31, 2024 and for the period ended 2023 was as follows:
| | March 31, 2024 | March 31, 2023 |
| Ordinary income | $321,103 | $73,690 |
| Long-term capital gains | 125,875 | — |
| Total | $446,978 | $73,690 |
As of March 31, 2024, the components of distributable earnings on a tax basis consisted of $61,308 of undistributed ordinary income and $187,260 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.600% of the first $1 billion of the fund’s average daily net assets; (b) 0.585% of the next $1 billion of the fund’s average daily net assets; and (c) 0.550% of the fund’s average daily net assets in excess of $2 billion. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
| | ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 19 |
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended March 31, 2024, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement 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 0.71% 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 July 31, 2024, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time. Prior to August 1, 2023, this agreement was voluntary.
The expense reductions described above amounted to $71,131 for the year ended March 31, 2024.
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended March 31, 2024, were equivalent to a net annual effective rate of 0.00% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These accounting and legal services fees incurred, for the year ended March 31, 2024, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5—Fund share transactions
Transactions in fund shares for the year ended March 31, 2024 and period ended March 31, 2023 were as follows:
| 20 | JOHN HANCOCK Fundamental Equity Income Fund | ANNUAL REPORT | |
| | Year Ended 3-31-24 | Period ended 3-31-231 |
| | Shares | Amount | Shares | Amount |
| Class I shares | | | | |
| Sold | 122,061 | $1,454,965 | 615,061 | $6,230,003 |
| Distributions reinvested | 39,145 | 446,978 | 2,092 | 21,650 |
| Net increase | 161,206 | $1,901,943 | 617,153 | $6,251,653 |
| Total net increase | 161,206 | $1,901,943 | 617,153 | $6,251,653 |
| 1 | Period from 6-28-22 (commencement of operations) to 3-31-23. |
Affiliates of the fund owned 100% of shares of Class I on March 31, 2024. 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 $3,577,743 and $2,312,874, respectively, for the year ended March 31, 2024.
Note 7—Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| | | | | | | | Dividends and distributions |
| Affiliate | Ending
share
amount | Beginning
value | Cost of
purchases | Proceeds
from shares
sold | Realized
gain
(loss) | Change in
unrealized
appreciation
(depreciation) | Income
distributions
received | Capital gain
distributions
received | Ending
value |
| John Hancock Collateral Trust | 60,977 | $270,001 | $2,043,453 | $(1,703,924) | $102 | $(18) | $21,323 | — | $609,614 |
| | ANNUAL REPORT | JOHN HANCOCK Fundamental Equity Income Fund | 21 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and of John Hancock Fundamental Equity Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Fundamental Equity Income Fund (one of the funds constituting John Hancock Investment Trust referred to hereafter as the "Fund") as of March 31, 2024, the related statement of operations for the year ended March 31, 2024 and the statement of changes in net assets and the financial highlights for the year ended March 31, 2024 and for the period June 28, 2022 (commencement of operations) through March 31, 2023, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2024, the results of its operations for the year ended March 31, 2024, and the changes in its net assets and the financial highlights for the year ended March 31, 2024 and for the period June 28, 2022 (commencement of operations) through March 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2024 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 8, 2024
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| 22 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended March 31, 2024.
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 $125,875 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 2024 Form 1099-DIV in early 2025. This will reflect the tax character of all distributions paid in calendar year 2024.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 23 |
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT
Operation of the Liquidity Risk Management Program
This section describes the operation and effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Fundamental Equity Income Fund, subject to the oversight of the Board. In order to provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund’s subadvisor, Manulife Investment Management (US) LLC (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor and the Board.
The Committee receives monthly reports and holds quarterly in person meetings to review: (1) the current market liquidity environment; (2) new Funds, redemption-in-kind activity reports, liquidity facility usage and other Fund events; (3) monthly liquidity risk assessments of all Funds in the LRMP (which includes illiquid investment monitoring); (4) monthly Fund-level liquidity classifications; (5) quarterly review of Primarily Highly Liquid Fund testing, Highly Liquid Investment Minimum (HLIM) determinations and Reasonably Anticipated Trade Size (RATS) recalibration reports; and (6) other LRMP related material. The Advisor utilizes a third-party vendor on behalf of the Funds, as the liquidity analytics provider. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential liquidity issues. The Committee also monitors and receives regular updates on U.S. and global events, such as the U.S. regional bank crisis, the U.S. government debt ceiling showdown, commercial real estate loans and the Israel/Hamas war that could impact financial markets and overall market liquidity. The Committee also participates in industry group discussions on current market events, operational challenges resulting from regulatory changes and proposals.
The Committee provided the Board at a meeting held on March 25-28, 2024 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any material changes to the LRMP. The report, which covered the period January 1, 2023 through December 31, 2023, included an assessment of important aspects of the LRMP including, but not limited to: (1) key governance functions and personnel; (2) the Funds’ Rule 22e-4 Policy and written LRMP; (3) the design and implementation of required LRMP elements; (4) subadvisor integration; (5) the appropriateness of each Fund’s investment strategy for an open-end fund structure; and (6) other pertinent information used to evaluate the adequacy and effectiveness of the LRMP.
The report provided an update on Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2023 and key initiatives for 2024.
The report also covered material liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part, that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
| 24 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
| • | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
Adequacy and Effectiveness
Based on the annual review and assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of the Fund.
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 25 |
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
| Independent Trustees | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Hassell H. McClellan,2 Born: 1945 | 2012 | 183 |
| 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 | 178 |
| 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 | 180 |
| 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 | 178 |
| 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), Board Member, Congressional Black Caucus Foundation (since 2024). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 183 |
| 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). |
| 26 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
| Independent Trustees (continued) | | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s) and other
directorships during past 5 years | Trustee
of the
Trust
since1 | Number of John
Hancock funds
overseen by
Trustee |
| Dean C. Garfield, Born: 1968 | 2022 | 178 |
| 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). |
| Deborah C. Jackson, Born: 1952 | 2008 | 181 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (2011-2023); 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 | 178 |
| 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 | 178 |
| 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 | 178 |
| Trustee | | |
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
| | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | 27 |
| Non-Independent 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 | 180 |
| 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 (2005-2023, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (2006-2023, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (2004-2023, 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 | 178 |
| 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); Director and Chairman, John Hancock Investment Management LLC (since 2023); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2023); Director and Chairman, John Hancock Investment Management Distributors LLC (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). |
| 28 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
| Principal officers who are not Trustees (continued) | |
Name, year of birth
Position(s) held with Trust
Principal occupation(s)
during past 5 years | Current
Position(s)
with the
Trust
since |
| Christopher (Kit) Sechler, Born: 1973 | 2020 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is duly elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee 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 FUNDAMENTAL EQUITY INCOME FUND | 29 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Noni L. Ellison
Grace K. Fey
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
Michael J. Mattioli, CFA
Nicholas P. Renart
Emory W. Sanders, Jr., CFA
Jonathan T. White, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
State Street Bank and Trust Company
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
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 by calling 800-225-5291.
| You can also contact us: | | |
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc.
P.O. Box 219909
Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc.
430 W 7th Street
Suite 219909
Kansas City, MO 64105-1407 |
| 30 | JOHN HANCOCK FUNDAMENTAL EQUITY INCOME FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Dynamic 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
Corporate Bond ETF
Disciplined Value International Select ETF
Dynamic Municipal Bond ETF
Fundamental All Cap Core ETF
International High Dividend ETF
Mortgage-Backed Securities ETF
Multifactor Developed International ETF
Multifactor Emerging Markets ETF
Multifactor Large Cap ETF
Multifactor Mid Cap ETF
Multifactor Small Cap ETF
Preferred Income ETF
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 better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Fundamental Equity Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2024
Annual report
John Hancock
Global Climate Action Fund
International equity
March 31, 2024
Beginning on July 24, 2024, as required by regulations adopted by the U.S. Securities and Exchange Commission, open-end mutual funds and ETFs will transmit tailored annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in shareholder reports transmitted to shareholders, but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR.
A message to shareholders
Dear shareholder,
U.S. stocks posted gains during the 12 months ended March 31, 2024. The beginning of the period brought weak returns, as concerns that interest rates would need to stay higher for longer led to an increase in bond yields and weighed heavily on investor sentiment through late October 2023. Encouraging inflation and consumer spending data, however, fueled optimism. Growing investor enthusiasm for artificial intelligence also bolstered the market, with notable outperformance from several large technology-related stocks. The U.S. Federal Reserve hinted at the end of the calendar year that it may begin to cut interest rates in 2024, but cooled somewhat toward the end of the reporting period as inflation remained elevated.
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 Climate Action Fund
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | 1 |
SECTOR COMPOSITION AS OF 3/31/2024 (% of total investments)
| TOP 10 HOLDINGS AS OF 3/31/2024 (% of total investments) |
| Microsoft Corp. | 7.3 |
| McKesson Corp. | 4.1 |
| Schneider Electric SE | 4.0 |
| Oracle Corp. | 3.9 |
| Visa, Inc., Class A | 3.8 |
| Lowe’s Companies, Inc. | 3.7 |
| Intertek Group PLC | 3.6 |
| Elevance Health, Inc. | 3.6 |
| Koninklijke Ahold Delhaize NV | 3.4 |
| Publicis Groupe SA | 3.3 |
| TOTAL | 40.7 |
| Cash and cash equivalents are not included. |
| COUNTRY COMPOSITION AS OF 3/31/2024 (% of total investments) |
| United States | 55.4 |
| United Kingdom | 11.0 |
| France | 10.1 |
| Ireland | 9.9 |
| Germany | 4.8 |
| Netherlands | 4.6 |
| Canada | 4.2 |
| TOTAL | 100.0 |
| 2 | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | ANNUAL REPORT | |
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 CLIMATE ACTION FUND | 3 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on December 20, 2023, with the same investment held until March 31, 2024.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at March 31, 2024, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024. Look in any other fund shareholder report
| 4 | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | ANNUAL 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.
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.
| | | Account
value on
10-1-2023 | Ending
value on
3-31-2024 | Expenses
paid during
period ended
3-31-20241 | Annualized
expense
ratio |
| Class I | Actual expenses/actual returns2 | $1,000.00 | $1,113.00 | $2.89 | 0.98% |
| | Hypothetical example | 1,000.00 | 1,020.10 | 4.95 | 0.98% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
| 2 | The inception date for the fund is 12-19-23. Actual Expenses are equal to the fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 103/366 (to reflect the period). |
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | 5 |
AS OF 3-31-24
| | | | | Shares | Value |
| Common stocks 100.2% | | | | | $5,575,718 |
| (Cost $5,048,975) | | | | | |
| Canada 4.3% | | | | | 238,310 |
| Canadian Pacific Kansas City, Ltd. | | 1,856 | 163,643 |
| WSP Global, Inc. | | 448 | 74,667 |
| France 10.2% | | | | | 565,210 |
| EssilorLuxottica SA | | 677 | 153,145 |
| Publicis Groupe SA | | 1,706 | 185,989 |
| Schneider Electric SE | | 1,000 | 226,076 |
| Germany 4.8% | | | | | 268,799 |
| Deutsche Boerse AG | | 529 | 108,334 |
| Merck KGaA | | 910 | 160,465 |
| Ireland 9.9% | | | | | 553,962 |
| Accenture PLC, Class A | | 451 | 156,321 |
| Aptiv PLC (A) | | 2,312 | 184,151 |
| Johnson Controls International PLC | | 2,579 | 168,460 |
| Trane Technologies PLC | | 150 | 45,030 |
| Netherlands 4.7% | | | | | 260,057 |
| Koninklijke Ahold Delhaize NV | | 6,331 | 189,435 |
| Wolters Kluwer NV | | 451 | 70,622 |
| United Kingdom 11.1% | | | | | 618,122 |
| Intertek Group PLC | | 3,239 | 203,888 |
| London Stock Exchange Group PLC | | 1,490 | 178,285 |
| RELX PLC | | 3,536 | 152,492 |
| Rentokil Initial PLC | | 14,037 | 83,457 |
| United States 55.2% | | | | | 3,071,258 |
| Abbott Laboratories | | 1,285 | 146,053 |
| Advanced Drainage Systems, Inc. | | 79 | 13,607 |
| Alphabet, Inc., Class A (A) | | 916 | 138,252 |
| Apple, Inc. | | 315 | 54,016 |
| Applied Materials, Inc. | | 457 | 94,247 |
| Broadcom, Inc. | | 86 | 113,985 |
| Brown & Brown, Inc. | | 1,852 | 162,124 |
| Elevance Health, Inc. | | 387 | 200,675 |
| Lowe’s Companies, Inc. | | 810 | 206,331 |
| Marsh & McLennan Companies, Inc. | | 434 | 89,395 |
| McDonald’s Corp. | | 434 | 122,366 |
| McKesson Corp. | | 428 | 229,772 |
| Microsoft Corp. | | 973 | 409,361 |
| NIKE, Inc., Class B | | 556 | 52,253 |
| 6 | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| United States (continued) | | | | | |
| NVIDIA Corp. | | 95 | $85,838 |
| Oracle Corp. | | 1,753 | 220,194 |
| Salesforce, Inc. | | 474 | 142,759 |
| Sysco Corp. | | 2,124 | 172,426 |
| UnitedHealth Group, Inc. | | 174 | 86,078 |
| Veralto Corp. | | 1,347 | 119,425 |
| Visa, Inc., Class A | | 760 | 212,101 |
|
| | | Yield (%) | | Shares | Value |
| Short-term investments 0.6% | | | | $33,071 |
| (Cost $33,080) | | | | | |
| Short-term funds 0.6% | | | | | 33,071 |
| John Hancock Collateral Trust (B) | 5.2975(C) | | 3,308 | 33,071 |
|
| Total investments (Cost $5,082,055) 100.8% | | | $5,608,789 |
| Other assets and liabilities, net (0.8%) | | | (45,033) |
| Total net assets 100.0% | | | | | $5,563,756 |
| 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. |
| (B) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
| (C) | The rate shown is the annualized seven-day yield as of 3-31-24. |
At 3-31-24, the aggregate cost of investments for federal income tax purposes was $5,082,059. Net unrealized appreciation aggregated to $526,730, of which $562,204 related to gross unrealized appreciation and $35,474 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | 7 |
STATEMENT OF ASSETS AND LIABILITIES 3-31-24
| Assets | |
| Unaffiliated investments, at value (Cost $5,048,975) | $5,575,718 |
| Affiliated investments, at value (Cost $33,080) | 33,071 |
| Total investments, at value (Cost $5,082,055) | 5,608,789 |
| Cash | 126 |
| Dividends and interest receivable | 2,633 |
| Receivable from affiliates | 3,249 |
| Other assets | 86,469 |
| Total assets | 5,701,266 |
| Liabilities | |
| Payable to affiliates | |
| Accounting and legal services fees | 218 |
| Transfer agent fees | 556 |
| Trustees’ fees | 10 |
| Other liabilities and accrued expenses | 136,726 |
| Total liabilities | 137,510 |
| Net assets | $5,563,756 |
| Net assets consist of | |
| Paid-in capital | $5,000,000 |
| Total distributable earnings (loss) | 563,756 |
| Net assets | $5,563,756 |
| |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class I ($5,563,756 ÷ 500,000 shares) | $11.13 |
| 8 | JOHN HANCOCK Global Climate Action Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the period ended 3-31-241
| Investment income | |
| Dividends | $11,044 |
| Dividends from affiliated investments | 533 |
| Less foreign taxes withheld | (111) |
| Total investment income | 11,466 |
| Expenses | |
| Investment management fees | 12,483 |
| Accounting and legal services fees | 246 |
| Transfer agent fees | 1,788 |
| Trustees’ fees | 223 |
| Custodian fees | 3,682 |
| Printing and postage | 6,593 |
| Professional fees | 62,614 |
| Other | 2,220 |
| Total expenses | 89,849 |
| Less expense reductions | (75,463) |
| Net expenses | 14,386 |
| Net investment loss | (2,920) |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 39,947 |
| Affiliated investments | (6) |
| | 39,941 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 526,744 |
| Affiliated investments | (9) |
| | 526,735 |
| Net realized and unrealized gain | 566,676 |
| Increase in net assets from operations | $563,756 |
| 1 Period from 12-19-23 (commencement of operations) to 3-31-24. | |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Climate Action Fund | 9 |
STATEMENT OF CHANGES IN NET ASSETS
| | Period ended
3-31-241 |
| Increase (decrease) in net assets | |
| From operations | |
| Net investment loss | $(2,920) |
| Net realized gain | 39,941 |
| Change in net unrealized appreciation (depreciation) | 526,735 |
| Increase in net assets resulting from operations | 563,756 |
| From fund share transactions | 5,000,000 |
| Total increase | 5,563,756 |
| Net assets | |
| Beginning of period | — |
| End of period | $5,563,756 |
| 1 | Period from 12-19-23 (commencement of operations) to 3-31-24. |
| 10 | JOHN HANCOCK Global Climate Action Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 3-31-241 |
| Per share operating performance | |
| Net asset value, beginning of period | $10.00 |
| Net investment loss2 | (0.01) |
| Net realized and unrealized gain (loss) on investments | 1.14 |
| Total from investment operations | 1.13 |
| Net asset value, end of period | $11.13 |
| Total return (%)3 | 11.304 |
| Ratios and supplemental data | |
| Net assets, end of period (in millions) | $6 |
| Ratios (as a percentage of average net assets): | |
| Expenses before reductions | 4.665 |
| Expenses including reductions | 0.985 |
| Net investment loss | (0.20)6 |
| Portfolio turnover (%) | 16 |
| 1 | Period from 12-19-23 (commencement of operations) to 3-31-24. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the period. |
| 4 | Not annualized. |
| 5 | Annualized. Certain expenses are presented unannualized. |
| 6 | Annualized. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Global Climate Action Fund | 11 |
Notes to financial statements
Note 1—Organization
John Hancock Global Climate Action 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 to provide long-term capital growth by investing in a diversified portfolio of Climate Leaders. Climate Leaders are issuers that the manager determines are aligned with the principles of the Paris Agreement, an international treaty that aims to strengthen the global response to the threat of climate change. 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 I shares are offered to institutions and certain investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
The fund commenced operations on December 19, 2023.
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
| 12 | JOHN HANCOCK Global Climate Action Fund | ANNUAL REPORT | |
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 March 31, 2024, by major security category or type:
| | Total
value at
3-31-24 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | | | | |
| Canada | $238,310 | $238,310 | — | — |
| France | 565,210 | — | $565,210 | — |
| Germany | 268,799 | — | 268,799 | — |
| Ireland | 553,962 | 553,962 | — | — |
| Netherlands | 260,057 | — | 260,057 | — |
| United Kingdom | 618,122 | — | 618,122 | — |
| United States | 3,071,258 | 3,071,258 | — | — |
| Short-term investments | 33,071 | 33,071 | — | — |
| Total investments in securities | $5,608,789 | $3,896,601 | $1,712,188 | — |
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 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
| | ANNUAL REPORT | JOHN HANCOCK Global Climate Action Fund | 13 |
currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. The fund incurred offering costs of $120,000 which are amortized over the fund’s first year of operations. $33,535 of offering costs were expensed during the period ended March 31, 2024 and $86,465 of unamortized offering cost are included in Other assets within the Statement of assets and liabilities.
Federal income taxes. The fund intends to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of March 31, 2024, 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.
As of March 31, 2024, the components of distributable earnings on a tax basis consisted of $41,712 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 foreign currency transactions.
| 14 | JOHN HANCOCK Global Climate Action Fund | ANNUAL REPORT | |
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 $500 million of the fund’s average daily net assets; and (b) 0.830% of the fund’s average daily net assets in excess of $500 million. The Advisor has a subadvisory agreement with Manulife Investment Management (North America) Limited, 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 period ended March 31, 2024, this waiver amounted to 0.01% of the fund’s average daily net assets, on an annualized basis. This agreement 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 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 expense reductions described above amounted to $75,463 for the period ended March 31, 2024.
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the period ended March 31, 2024, were equivalent to a net annual effective rate of 0.00% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These accounting and legal services fees incurred, for the period ended March 31, 2024, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
| | ANNUAL REPORT | JOHN HANCOCK Global Climate Action Fund | 15 |
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5—Fund share transactions
Transactions in fund shares for the period ended March 31, 2024 were as follows:
| | Period ended 3-31-241 |
| | Shares | Amount |
| Class I shares | | |
| Sold | 500,000 | $5,000,000 |
| Net increase | 500,000 | $5,000,000 |
| Total net increase | 500,000 | $5,000,000 |
| 1 | Period from 12-19-23 (commencement of operations) to 3-31-24. |
Affiliates of the fund owned 100% of shares of Class I on March 31, 2024. 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 $5,836,722 and $839,295, respectively, for the period ended March 31, 2024.
Note 7—Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| | | | | | | | Dividends and distributions |
| Affiliate | Ending
share
amount | Beginning
value | Cost of
purchases | Proceeds
from shares
sold | Realized
gain
(loss) | Change in
unrealized
appreciation
(depreciation) | Income
distributions
received | Capital gain
distributions
received | Ending
value |
| John Hancock Collateral Trust | 3,308 | — | $401,889 | $(368,803) | $(6) | $(9) | $533 | — | $33,071 |
| 16 | JOHN HANCOCK Global Climate Action Fund | ANNUAL REPORT | |
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.
| | ANNUAL REPORT | JOHN HANCOCK Global Climate Action Fund | 17 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Global Climate Action 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 Climate Action Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the "Fund") as of March 31, 2024, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period December 19, 2023 (commencement of operations) through March 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2024, and the results of its operations, changes in its net assets, and the financial highlights for the period December 19, 2023 (commencement of operations) through March 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2o24 by correspondence with the custodian. We believe that our audit provides a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 8, 2024
We have served as the auditor of one or more investment companies in John Hancock group of funds since 1988.
| 18 | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | ANNUAL REPORT | |
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable period ended March 31, 2024.
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 2024 Form 1099-DIV in early 2025. This will reflect the tax character of all distributions paid in calendar year 2024.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| | ANNUAL REPORT | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | 19 |
EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
Approval of Advisory and Subadvisory Agreements
At meetings held on December 12-14, 2023, the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust), including all of the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reviewed and approved the establishment of John Hancock Global Climate Action Fund (the New Fund). The Independent Trustees also met separately to evaluate and discuss the information presented, including with independent legal counsel to the Independent Trustees.
At the December 12-14, 2023 meeting, the Board considered and approved with respect to the New Fund:
| (a) | an amendment to the advisory agreement between the Trust and John Hancock Investment Management LLC (the Advisor) (the Advisory Agreement); and |
| (b) | an amendment to the subadvisory agreement between the Advisor and Manulife Investment Management (North America) Limited (the Subadvisor) (the Subadvisory Agreement). |
In considering the amendments to the Advisory Agreement and the Subadvisory Agreement with respect to the New Fund, the Board received in advance of the meetings a variety of materials relating to the New Fund, the Advisor and the Subadvisor, including comparative fee and expense information for a group of comparable funds, and other information regarding the nature, extent, and quality of services to be provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s anticipated revenues and costs of providing services in connection with its proposed relationship to the New Fund and any compensation paid to affiliates of the Advisor. 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 other John Hancock Funds, including other funds (the Funds), including quarterly performance reports prepared by management containing reviews of investment results and periodic presentations from the Subadvisor with respect to the other Funds that it manages. The information received and considered by the Board in connection with the December meetings and throughout the year (with respect to other Funds) 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 the non-advisory services, if any, to be provided to the New Fund by the Advisor and or its affiliates, including administrative services. The Board also took into account information with respect to the New Fund presented at its September 26-28, 2023 meeting. 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 New Fund.
Throughout the process, the Board asked questions of and were afforded the opportunity to request 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 Advisory Agreement and Subadvisory Agreement and discussed the proposed Advisory Agreement and Subadvisory Agreement 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 New 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 have been based in part on relevant background information obtained in connection with its consideration of the advisory and subadvisory arrangements for other Funds in prior years.
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 to be provided to the New 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 Funds’ compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board considered the investment strategy proposed for the New Fund. 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 New Fund’s compliance programs, risk management programs, liquidity 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 would be responsible for the management of the day-to-day operations of the New Fund, including, but not limited to, general supervision and coordination of the services to be provided by the Subadvisor, and also would be responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers, including the New Fund’s distributor. The Board also considered the significant risks assumed by the Advisor in connection with the services to be provided to the New 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 to be provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management of other Funds and the quality of the performance of the Advisor’s duties with respect to other Funds, 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 relationships, including with the Subadvisor, 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 New 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 New Fund, and bringing loss recovery actions on behalf of the New Fund; |
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| (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 New Fund; |
| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the New 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 provide a high quality of services under the Advisory Agreement with respect to the New Fund.
Investment performance. In connection with its consideration of the Advisory Agreement, the Board considered the New Fund’s proposed investment strategy and processes, as well as the experience of the portfolio management team at the Subadvisor in managing other funds. The Board also reviewed the performance history of the strategy to be used by the New Fund. The Board also noted that it reviews at its regularly scheduled meetings information about the performance of other John Hancock Funds managed by the Advisor and the Subadvisor.
Fees and expenses. The Board reviewed comparative information including, among other data, the New Fund’s anticipated management fees and net total expenses as compared to similarly situated funds deemed to be comparable to the New Fund in light of the nature, extent, and quality of the investment management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board took into account management’s discussion of the New Fund’s anticipated expenses. The Board reviewed information provided by the Advisor concerning investment advisory fees charged to other clients (including other funds in the complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the New Fund and the services they provide to other such comparable clients or funds.
The Board also took into account management’s discussion with respect to the proposed management fee and the fees of the Subadvisor, including the amount of the advisory fee to be 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, and not the New Fund, would be responsible for paying the subadvisory fees. The Board also noted that the New Fund has breakpoints in its contractual management fee schedule that will reduce the New Fund’s management fees as the New Fund’s assets increase. The Board also took into account that management has agreed to implement an overall fee waiver across a number of funds in the complex, including the New Fund, which is discussed further below.
The Board concluded that the advisory fees to be paid by the New Fund are reasonable in light of the nature, extent and quality of the services expected to be provided to the New 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 New Fund, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | noted that because the New Fund had not yet commenced operations, no actual revenue, cost or profitability data was available, although the Board received information from the Adviser on its projected profitability with respect to the New Fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data; |
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| (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 the New Fund’s Subadvisor is an affiliate of the Advisor; |
| (h) | noted that the Advisor will derive reputational and other indirect benefits from providing advisory services to the New Fund; |
| (i) | noted that the subadvisory fee for the New Fund will be paid by Advisor; and |
| (j) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it will provide to the New 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 anticipated level of profitability, if any, of the Advisor and its affiliates from their relationship with the New Fund is reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized if the New 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 New 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 New Fund’s advisory fee structure and concluded that: (i) the New 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 New Fund; and (ii) although economies of scale cannot be measured with precision, these arrangements will permit shareholders of the New Fund to benefit from economies of scale if the New Fund grows. The Board also took into account management’s discussion of the New Fund’s advisory fee structure; |
| (c) | the Board also considered the potential effect of the New Fund’s future growth in size on its performance and fees; and |
| (d) | the Board also noted that if the New Fund’s assets increase over time, the New 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:
| (a) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); and |
| (b) | the proposed subadvisory fee for the New Fund, including any breakpoints. |
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Nature, extent, and quality of services. With respect to the services to be provided by the Subadvisor, the Board received and reviewed information provided to the Board by the Subadvisor with respect to the New Fund and took into account information presented throughout the past year with respect to Funds in the complex managed by the Advisor and subadvised by the Subadvisor. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as considered 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 will provide services to the New Fund. The Board 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 in regard to the Funds, 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 also considered the experience of the portfolio management team that would be responsible for managing the New Fund’s assets.
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 New Fund, the Board noted that the fees under the Subadvisory Agreement will be paid by the Advisor and not the New Fund. The Board also considered 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 New 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 New Fund will pay an advisory fee to the Advisor and that, in turn, the Advisor will pay a subadvisory fee to the Subadvisor.
Subadvisor performance. As noted above, the Board considered the New Fund’s investment strategies and processes. The Board also noted that it reviews at its regularly scheduled meetings information about the performance of other John Hancock Funds, including other funds, managed by the Subadvisor. The Board also reviewed the performance of the strategy to be used by the Subadvisor for the New Fund. 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, and currently subadvises other Funds, including other funds, in the complex and the Board is generally satisfied with the Subadvisor’s management of these Funds, and may reasonably be expected to provide a high quality of investment management services to the New Fund; |
| (2) | the Subadvisor provided performance information for a composite of comparable accounts over various time periods; |
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| (3) | the proposed subadvisory fees are reasonable in relation to the level and quality of services to be provided under the Subadvisory Agreement; and |
| (4) | that the subadvisory fees will be paid by the Advisor not the New Fund and that the subadvisory fee breakpoints are reflected in the advisory fee for the New Fund in order to permit shareholders to benefit from economies of scale if the New Fund grows. |
***
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, concluded that approval of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the New Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the amendments to the Advisory Agreement and the Subadvisory Agreement.
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT
Operation of the Liquidity Risk Management Program
This section describes the operation and effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Global Climate Action Fund, subject to the oversight of the Board. In order to provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund’s subadvisor, Manulife Investment Management (North America) Limited (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor and the Board.
The Committee receives monthly reports and holds quarterly in person meetings to review: (1) the current market liquidity environment; (2) new Funds, redemption-in-kind activity reports, liquidity facility usage and other Fund events; (3) monthly liquidity risk assessments of all Funds in the LRMP (which includes illiquid investment monitoring); (4) monthly Fund-level liquidity classifications; (5) quarterly review of Primarily Highly Liquid Fund testing, Highly Liquid Investment Minimum (HLIM) determinations and Reasonably Anticipated Trade Size (RATS) recalibration reports; and (6) other LRMP related material. The Advisor utilizes a third-party vendor on behalf of the Funds, as the liquidity analytics provider. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential liquidity issues. The Committee also monitors and receives regular updates on U.S. and global events, such as the U.S. regional bank crisis, the U.S. government debt ceiling showdown, commercial real estate loans and the Israel/Hamas war that could impact financial markets and overall market liquidity. The Committee also participates in industry group discussions on current market events, operational challenges resulting from regulatory changes and proposals.
The Committee provided the Board at a meeting held on March 25-28, 2024 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any material changes to the LRMP. The report, which covered the period January 1, 2023 through December 31, 2023, included an assessment of important aspects of the LRMP including, but not limited to: (1) key governance functions and personnel; (2) the Funds’ Rule 22e-4 Policy and written LRMP; (3) the design and implementation of required LRMP elements; (4) subadvisor integration; (5) the appropriateness of each Fund’s investment strategy for an open-end fund structure; and (6) other pertinent information used to evaluate the adequacy and effectiveness of the LRMP.
The report provided an update on Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2023 and key initiatives for 2024.
The report also covered material liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part, that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
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| • | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
Adequacy and Effectiveness
Based on the annual review and assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of the Fund.
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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 | 183 |
| 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 | 178 |
| 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 | 180 |
| 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 | 178 |
| 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), Board Member, Congressional Black Caucus Foundation (since 2024). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 183 |
| 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). |
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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 |
| Dean C. Garfield, Born: 1968 | 2022 | 178 |
| 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). |
| Deborah C. Jackson, Born: 1952 | 2008 | 181 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (2011-2023); 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 | 178 |
| 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 | 178 |
| 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 | 178 |
| 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 | 180 |
| 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 (2005-2023, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (2006-2023, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (2004-2023, 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 | 178 |
| 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); Director and Chairman, John Hancock Investment Management LLC (since 2023); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2023); Director and Chairman, John Hancock Investment Management Distributors LLC (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). |
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| 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 CLIMATE ACTION FUND | 31 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Noni L. Ellison
Grace K. Fey
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 (North America) Limited
Portfolio Managers
Steve Bélisle, BBA,M.Sc., CFA
Patrick Blais, FSA, CFA
Brian Chan, CFA
Derek Chan, MBA, CPA, CGA, CFA
Cavan Yie, MBA, 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 |
| 32 | JOHN HANCOCK GLOBAL CLIMATE ACTION FUND | ANNUAL REPORT | |
John Hancock family of funds
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ALTERNATIVE FUNDS
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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
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Multifactor Mid Cap ETF
Multifactor Small Cap ETF
Preferred Income ETF
U.S. High Dividend ETF
ASSET ALLOCATION/TARGET DATE FUNDS
Balanced
Multi-Asset High Income
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Lifetime Blend Portfolios
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Multimanager Lifetime Portfolios
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG Core Bond
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CLOSED-END FUNDS
Asset-Based Lending
Financial Opportunities
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Investors Trust
Preferred Income
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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 Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
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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 Climate Action Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2024
Annual report
John Hancock
Mid Cap Growth Fund
U.S. equity
March 31, 2024
Beginning on July 24, 2024, as required by regulations adopted by the U.S. Securities and Exchange Commission, open-end mutual funds and ETFs will transmit tailored annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in shareholder reports transmitted to shareholders, but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR.
A message to shareholders
Dear shareholder,
U.S. stocks posted gains during the 12 months ended March 31, 2024. The beginning of the period brought weak returns, as concerns that interest rates would need to stay higher for longer led to an increase in bond yields and weighed heavily on investor sentiment through late October 2023. Encouraging inflation and consumer spending data, however, fueled optimism. Growing investor enthusiasm for artificial intelligence also bolstered the market, with notable outperformance from several large technology-related stocks. The U.S. Federal Reserve hinted at the end of the calendar year that it may begin to cut interest rates in 2024, but cooled somewhat toward the end of the reporting period as inflation remained elevated.
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
Mid Cap Growth Fund
| | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 1 |
INVESTMENT OBJECTIVE
The fund seeks long-term growth and capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/2024 (%)
The Russell Midcap Growth Index tracks the performance of publicly traded mid-cap companies with higher price-to-book ratios and higher forecasted growth values.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.
1Effective 10-15-21, John Hancock Funds II Mid Cap Stock Fund (the Accounting Survivor) merged into the newly created John Hancock Mid Cap Growth Fund. The Mid Cap Growth Fund adopted the performance and accounting history of the Accounting Survivor. Class 1 of the Accounting Survivor commenced operations on 10-17-05. Class R6 shares of the fund were first offered on 10-18-21. Class A shares of the fund were first offered on 11-5-21. Class A returns prior to 10-18-21 are those of Class 1 shares of the Accounting Survivor and returns from 10-18-21 to Class A launch are those of Class R6 shares of the fund that have not been adjusted for class-specific expenses; otherwise, returns would vary.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| 2 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Stock market generated positive performance
The U.S. stock market posted gains, driven by enthusiasm over artificial intelligence, positive inflation data, and a more accommodative stance from the U.S. Federal Reserve (Fed).
The fund underperformed its benchmark, the Russell Midcap Growth Index
The fund fell short of its benchmark due primarily to an underweight in the information technology sector and an overweight to the healthcare sector.
Security selection also was a detractor
Stock selection in the information technology and healthcare sectors detracted, while stock selection in the consumer staples and communication services sectors contributed to relative performance.
SECTOR COMPOSITION AS OF 3/31/2024 (% 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 MID CAP GROWTH FUND | 3 |
Management’s discussion of fund performance
How did the markets perform during the 12 months ended March 31, 2024?
The U.S. stock market generated positive returns, driven by enthusiasm for generative artificial intelligence, positive inflation data, and the Fed’s more dovish sentiment. Growth stocks continued to lead value stocks.
How did the fund perform?
In a favorable environment for investors in U.S. equities, the fund produced a gain but lagged its benchmark. Sector allocation was the main detractor from the fund’s relative performance, especially an underweight in the information technology sector and an overweight in the healthcare sector. In contrast, an overweight in consumer discretionary added value. Security selection in the information technology and healthcare sectors also hampered relative performance. Selection in the consumer staples and communication services sectors were partly offsetting positive contributions.
Which individual holdings had the largest affect on fund performance?
The largest individual detractor was Agilon Health, Inc., a healthcare services company whose shares fell as it negatively revised several years’ worth of financial guidance and saw its chief financial officer announce his pending retirement. Other notable detractors for the period were energy technology company SolarEdge
TOP 10 HOLDINGS
AS OF 3/31/2024 (% of net assets) |
| DexCom, Inc. | 3.7 |
| Spotify Technology SA | 3.2 |
| Pinterest, Inc., Class A | 3.1 |
| Axon Enterprise, Inc. | 3.0 |
| Block, Inc. | 3.0 |
| e.l.f. Beauty, Inc. | 2.8 |
| Shockwave Medical, Inc. | 2.7 |
| Tradeweb Markets, Inc., Class A | 2.7 |
| DraftKings, Inc., Class A | 2.6 |
| Flex, Ltd. | 2.6 |
| TOTAL | 29.4 |
| Cash and cash equivalents are not included. |
| 4 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | |
Technologies, Inc. and medical device firm Insulet Corp. We sold the fund’s holdings in all three companies prior to period end.
ARM Holdings, an out-of-benchmark position and a semiconductor company, was one of the largest contributors for the period. The firm’s shares rose as it reported strong third-quarter financial results and beat analysts’ expectations. We sold the fund’s holdings in the company prior to period end. Other notable contributors were Celsius Holdings, Inc., a maker of energy drinks, and digital music services company Spotify Technology SA.
Mario E. Abularach, CFA, CMT
The views expressed in this report are exclusively those of the portfolio management team at Wellington Management Company LLP and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 5 |
TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2024
Average annual total returns (%)
with maximum sales charge | Cumulative total returns (%)
with maximum sales charge |
| | 1-year | 5-year | 10-year | 5-year | 10-year |
| Class A1 | 15.35 | 8.40 | 9.99 | 49.67 | 159.03 |
| Class C1 | 19.52 | 9.12 | 10.35 | 54.74 | 167.74 |
| Class I1,2 | 21.80 | 9.65 | 10.62 | 58.51 | 174.26 |
| Class R61,2 | 21.90 | 9.72 | 10.65 | 58.98 | 175.08 |
| Class NAV1,2 | 21.90 | 9.72 | 10.65 | 58.98 | 175.08 |
| Index† | 26.28 | 11.82 | 11.35 | 74.81 | 193.08 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 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 (%) | 1.27 | 2.02 | 1.02 | 0.91 | 0.90 |
| Net (%) | 1.19 | 1.94 | 0.94 | 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 Russell Midcap Growth Index.
See the following page for footnotes.
| 6 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | |
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Mid Cap Growth Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the Russell Midcap Growth Index.
| | Start date | With maximum
sales charge ($) | Without
sales charge ($) | Index ($) |
| Class C1,3 | 3-31-14 | 26,774 | 26,774 | 29,308 |
| Class I1,2 | 3-31-14 | 27,426 | 27,426 | 29,308 |
| Class R61,2 | 3-31-14 | 27,508 | 27,508 | 29,308 |
| Class NAV1,2 | 3-31-14 | 27,508 | 27,508 | 29,308 |
The Russell Midcap Growth Index tracks the performance of publicly traded mid-cap companies with higher price-to-book ratios and higher forecasted growth values.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
| 1 | Effective 10-15-21, John Hancock Funds II Mid Cap Stock Fund (the Accounting Survivor) merged into the newly created John Hancock Mid Cap Growth Fund. The Mid Cap Growth Fund adopted the performance and accounting history of the Accounting Survivor. Class 1 of the Accounting Survivor commenced operations on 10-17-05. Class NAV and Class R6 shares of the fund were first offered on 10-18-21. Class A, Class C, and Class I shares of the fund were first offered on 11-5-21. Class A, Class C, and Class I returns prior to 10-18-21 are those of Class 1 shares of the Accounting Survivor and returns from 10-18-21 to launch are those of Class R6 shares of the fund that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
| 2 | For certain types of investors, as described in the fund’s prospectuses. |
| 3 | The contingent deferred sales charge is not applicable. |
| | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 7 |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at March 31, 2024, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on October 1, 2023, with the same investment held until March 31, 2024. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 8 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | |
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
| | | Account
value on
10-1-2023 | Ending
value on
3-31-2024 | Expenses
paid during
period ended
3-31-20241 | Annualized
expense
ratio |
| Class A | Actual expenses/actual returns | $1,000.00 | $1,250.80 | $6.70 | 1.19% |
| | Hypothetical example | 1,000.00 | 1,019.10 | 6.01 | 1.19% |
| Class C | Actual expenses/actual returns | 1,000.00 | 1,245.90 | 10.84 | 1.93% |
| | Hypothetical example | 1,000.00 | 1,015.40 | 9.72 | 1.93% |
| Class I | Actual expenses/actual returns | 1,000.00 | 1,252.70 | 5.29 | 0.94% |
| | Hypothetical example | 1,000.00 | 1,020.30 | 4.75 | 0.94% |
| Class R6 | Actual expenses/actual returns | 1,000.00 | 1,252.70 | 4.62 | 0.82% |
| | Hypothetical example | 1,000.00 | 1,020.90 | 4.14 | 0.82% |
| Class NAV | Actual expenses/actual returns | 1,000.00 | 1,252.70 | 4.56 | 0.81% |
| | Hypothetical example | 1,000.00 | 1,021.00 | 4.09 | 0.81% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
| | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 9 |
AS OF 3-31-24
| | | | | Shares | Value |
| Common stocks 98.3% | | | | | $1,422,414,318 |
| (Cost $1,094,520,675) | | | | | |
| Communication services 10.2% | | | 146,900,420 |
| Entertainment 7.1% | | | |
| Liberty Media Corp.-Liberty Formula One, Series C (A) | | | 410,658 | 26,939,165 |
| Live Nation Entertainment, Inc. (A) | | | 277,077 | 29,306,434 |
| Spotify Technology SA (A) | | | 172,983 | 45,650,214 |
| Interactive media and services 3.1% | | | |
| Pinterest, Inc., Class A (A) | | | 1,298,085 | 45,004,607 |
| Consumer discretionary 15.2% | | | 220,063,218 |
| Automobile components 1.0% | | | |
| Mobileye Global, Inc., Class A (A)(B) | | | 454,127 | 14,600,183 |
| Hotels, restaurants and leisure 4.6% | | | |
| DoorDash, Inc., Class A (A) | | | 104,734 | 14,423,966 |
| DraftKings, Inc., Class A (A) | | | 838,629 | 38,082,143 |
| Las Vegas Sands Corp. | | | 268,259 | 13,868,990 |
| Household durables 1.0% | | | |
| Lennar Corp., Class A | | | 87,569 | 15,060,117 |
| Specialty retail 4.6% | | | |
| Abercrombie & Fitch Company, Class A (A) | | | 121,471 | 15,223,960 |
| Burlington Stores, Inc. (A) | | | 94,758 | 22,001,860 |
| Five Below, Inc. (A) | | | 68,735 | 12,467,154 |
| O’Reilly Automotive, Inc. (A) | | | 14,491 | 16,358,600 |
| Textiles, apparel and luxury goods 4.0% | | | |
| Deckers Outdoor Corp. (A) | | | 23,122 | 21,763,814 |
| Lululemon Athletica, Inc. (A) | | | 30,501 | 11,915,216 |
| On Holding AG, Class A (A) | | | 686,750 | 24,297,215 |
| Consumer staples 5.3% | | | 77,368,059 |
| Beverages 1.8% | | | |
| Celsius Holdings, Inc. (A) | | | 311,665 | 25,843,262 |
| Personal care products 3.5% | | | |
| BellRing Brands, Inc. (A) | | | 176,415 | 10,413,777 |
| e.l.f. Beauty, Inc. (A) | | | 209,718 | 41,111,020 |
| Energy 3.5% | | | 50,875,109 |
| Oil, gas and consumable fuels 3.5% | | | |
| Cheniere Energy, Inc. | | | 101,640 | 16,392,499 |
| Diamondback Energy, Inc. | | | 60,113 | 11,912,593 |
| Targa Resources Corp. | | | 201,536 | 22,570,017 |
| 10 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| | | | | Shares | Value |
| Financials 8.7% | | | $125,168,939 |
| Capital markets 5.7% | | | |
| Ares Management Corp., Class A | | | 247,270 | 32,881,965 |
| Evercore, Inc., Class A | | | 56,879 | 10,954,327 |
| Tradeweb Markets, Inc., Class A | | | 370,758 | 38,621,861 |
| Financial services 3.0% | | | |
| Block, Inc. (A) | | | 504,975 | 42,710,786 |
| Health care 17.6% | | | 254,998,215 |
| Biotechnology 4.0% | | | |
| Exact Sciences Corp. (A) | | | 499,066 | 34,465,498 |
| Neurocrine Biosciences, Inc. (A) | | | 91,411 | 12,607,405 |
| United Therapeutics Corp. (A) | | | 45,828 | 10,527,608 |
| Health care equipment and supplies 8.9% | | | |
| Align Technology, Inc. (A) | | | 32,334 | 10,602,965 |
| DexCom, Inc. (A) | | | 381,016 | 52,846,918 |
| Inspire Medical Systems, Inc. (A) | | | 118,370 | 25,424,692 |
| Shockwave Medical, Inc. (A) | | | 122,034 | 39,737,931 |
| Life sciences tools and services 4.7% | | | |
| Agilent Technologies, Inc. | | | 200,113 | 29,118,443 |
| Avantor, Inc. (A) | | | 556,336 | 14,225,512 |
| Medpace Holdings, Inc. (A) | | | 62,950 | 25,441,243 |
| Industrials 11.5% | | | 166,615,972 |
| Aerospace and defense 3.0% | | | |
| Axon Enterprise, Inc. (A) | | | 139,725 | 43,717,158 |
| Building products 1.5% | | | |
| Builders FirstSource, Inc. (A) | | | 104,910 | 21,878,981 |
| Commercial services and supplies 2.5% | | | |
| Copart, Inc. (A) | | | 615,465 | 35,647,733 |
| Construction and engineering 1.9% | | | |
| Fluor Corp. (A) | | | 663,246 | 28,042,041 |
| Machinery 1.2% | | | |
| The Toro Company | | | 187,576 | 17,187,589 |
| Professional services 1.4% | | | |
| EXL Service Holdings, Inc. (A) | | | 633,411 | 20,142,470 |
| Information technology 22.1% | | | 319,993,406 |
| Electronic equipment, instruments and components 3.2% | | | |
| Fabrinet (A) | | | 48,145 | 9,100,368 |
| Flex, Ltd. (A) | | | 1,319,653 | 37,755,272 |
| IT services 7.1% | | | |
| Cloudflare, Inc., Class A (A) | | | 116,255 | 11,256,972 |
| Gartner, Inc. (A) | | | 77,552 | 36,966,712 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 11 |
| | | | | Shares | Value |
| Information technology (continued) | | | |
| IT services (continued) | | | |
| Globant SA (A) | | | 58,917 | $11,895,342 |
| MongoDB, Inc. (A) | | | 76,991 | 27,612,052 |
| Snowflake, Inc., Class A (A) | | | 89,341 | 14,437,506 |
| Semiconductors and semiconductor equipment 2.2% | | | |
| MKS Instruments, Inc. | | | 134,045 | 17,827,985 |
| Universal Display Corp. | | | 84,501 | 14,234,193 |
| Software 9.6% | | | |
| Crowdstrike Holdings, Inc., Class A (A) | | | 113,384 | 36,349,777 |
| Datadog, Inc., Class A (A) | | | 219,505 | 27,130,818 |
| Gitlab, Inc., Class A (A) | | | 216,447 | 12,623,189 |
| HubSpot, Inc. (A) | | | 40,308 | 25,255,380 |
| Informatica, Inc., Class A (A) | | | 467,532 | 16,363,620 |
| Workday, Inc., Class A (A) | | | 77,669 | 21,184,220 |
| Materials 1.4% | | | 19,909,514 |
| Construction materials 1.4% | | | |
| Vulcan Materials Company | | | 72,950 | 19,909,514 |
| Real estate 1.9% | | | 27,535,830 |
| Real estate management and development 1.9% | | | |
| CoStar Group, Inc. (A) | | | 285,050 | 27,535,830 |
| Utilities 0.9% | | | 12,985,636 |
| Gas utilities 0.5% | | | |
| Atmos Energy Corp. | | | 55,415 | 6,587,181 |
| Multi-utilities 0.4% | | | |
|
| CenterPoint Energy, Inc. | | | 224,586 | 6,398,455 |
|
| Preferred securities 0.5% | | | | | $7,367,404 |
| (Cost $9,360,258) | | | | | |
| Information technology 0.5% | | | 7,367,404 |
| Software 0.5% | | | |
| Essence Group Holdings Corp. (A)(C)(D) | | 2,958,957 | 3,757,875 |
| Lookout, Inc., Series F (A)(C)(D) | | 392,767 | 3,609,529 |
|
| | | Yield (%) | | Shares | Value |
| Short-term investments 1.8% | | | | | $26,841,981 |
| (Cost $26,846,423) | | | | | |
| Short-term funds 1.8% | | | | | 26,841,981 |
| John Hancock Collateral Trust (E) | 5.2975(F) | | 1,600,367 | 15,999,507 |
| State Street Institutional U.S. Government Money Market Fund, Premier Class | 5.2417(F) | | 10,842,474 | 10,842,474 |
| 12 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
|
| Total investments (Cost $1,130,727,356) 100.6% | | | $1,456,623,703 |
| Other assets and liabilities, net (0.6%) | | | | (8,930,126) |
| Total net assets 100.0% | | | | | $1,447,693,577 |
| 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. |
| (B) | All or a portion of this security is on loan as of 3-31-24. |
| (C) | Restricted security as to resale. For more information on this security refer to the Notes to financial statements. |
| (D) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
| (E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
| (F) | The rate shown is the annualized seven-day yield as of 3-31-24. |
At 3-31-24, the aggregate cost of investments for federal income tax purposes was $1,135,694,983. Net unrealized appreciation aggregated to $320,928,720, of which $352,403,526 related to gross unrealized appreciation and $31,474,806 related to gross unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 13 |
STATEMENT OF ASSETS AND LIABILITIES 3-31-24
| Assets | |
| Unaffiliated investments, at value (Cost $1,114,723,407) including $14,806,560 of securities loaned | $1,440,624,196 |
| Affiliated investments, at value (Cost $16,003,949) | 15,999,507 |
| Total investments, at value (Cost $1,130,727,356) | 1,456,623,703 |
| Cash | 608 |
| Dividends receivable | 447,033 |
| Receivable for fund shares sold | 122,461 |
| Receivable for investments sold | 7,169,646 |
| Receivable for securities lending income | 3,628 |
| Other assets | 148,245 |
| Total assets | 1,464,515,324 |
| Liabilities | |
| Payable for investments purchased | 43,461 |
| Payable for fund shares repurchased | 563,522 |
| Payable upon return of securities loaned | 16,016,620 |
| Payable to affiliates | |
| Accounting and legal services fees | 67,469 |
| Transfer agent fees | 4,555 |
| Trustees’ fees | 2,457 |
| Other liabilities and accrued expenses | 123,663 |
| Total liabilities | 16,821,747 |
| Net assets | $1,447,693,577 |
| Net assets consist of | |
| Paid-in capital | $1,388,388,426 |
| Total distributable earnings (loss) | 59,305,151 |
| Net assets | $1,447,693,577 |
| |
| 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 ($31,545,758 ÷ 1,951,867 shares)1 | $16.16 |
| Class C ($171,880 ÷ 10,834 shares)1 | $15.86 |
| Class I ($3,097,017 ÷ 190,493 shares) | $16.26 |
| Class R6 ($300,590,956 ÷ 18,430,237 shares) | $16.31 |
| Class NAV ($1,112,287,966 ÷ 68,192,695 shares) | $16.31 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $17.01 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 14 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 3-31-24
| Investment income | |
| Dividends | $5,704,638 |
| Securities lending | 339,132 |
| Total investment income | 6,043,770 |
| Expenses | |
| Investment management fees | 11,372,947 |
| Distribution and service fees | 62,498 |
| Accounting and legal services fees | 292,918 |
| Transfer agent fees | 49,171 |
| Trustees’ fees | 33,831 |
| Custodian fees | 162,916 |
| State registration fees | 99,439 |
| Printing and postage | 28,994 |
| Professional fees | 101,829 |
| Other | 56,608 |
| Total expenses | 12,261,151 |
| Less expense reductions | (1,055,885) |
| Net expenses | 11,205,266 |
| Net investment loss | (5,161,496) |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments | 49,258,493 |
| Affiliated investments | 6,180 |
| | 49,264,673 |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 237,293,118 |
| Affiliated investments | (5,788) |
| | 237,287,330 |
| Net realized and unrealized gain | 286,552,003 |
| Increase in net assets from operations | $281,390,507 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 15 |
STATEMENTS OF CHANGES IN NET ASSETS
| | Year ended
3-31-24 | Year ended
3-31-23 |
| Increase (decrease) in net assets | | |
| From operations | | |
| Net investment loss | $(5,161,496) | $(3,416,409) |
| Net realized gain (loss) | 49,264,673 | (303,317,295) |
| Change in net unrealized appreciation (depreciation) | 237,287,330 | 29,546,047 |
| Increase (decrease) in net assets resulting from operations | 281,390,507 | (277,187,657) |
| Distributions to shareholders | | |
| From earnings | | |
| Class A | — | (838,676) |
| Class C | — | (7,763) |
| Class I | — | (240,504) |
| Class R6 | — | (20,042,927) |
| Class NAV | — | (71,562,747) |
| Total distributions | — | (92,692,617) |
| From fund share transactions | (224,303,452) | 63,893,824 |
| Total increase (decrease) | 57,087,055 | (305,986,450) |
| Net assets | | |
| Beginning of year | 1,390,606,522 | 1,696,592,972 |
| End of year | $1,447,693,577 | $1,390,606,522 |
| 16 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS A SHARES Period ended | 3-31-24 | 3-31-23 | 3-31-221 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $13.31 | $17.26 | $22.29 |
| Net investment loss2 | (0.10) | (0.07) | (0.07) |
| Net realized and unrealized gain (loss) on investments | 2.95 | (2.96) | (4.96) |
| Total from investment operations | 2.85 | (3.03) | (5.03) |
| Less distributions | | | |
| From net realized gain | — | (0.92) | — |
| Total distributions | — | (0.92) | — |
| Net asset value, end of period | $16.16 | $13.31 | $17.26 |
| Total return (%)3,4 | 21.41 | (17.12) | (22.57)5 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $32 | $19 | $5 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 1.26 | 1.26 | 1.246 |
| Expenses including reductions | 1.18 | 1.18 | 1.176 |
| Net investment loss | (0.74) | (0.53) | (0.98)6 |
| Portfolio turnover (%) | 114 | 102 | 697 |
| 1 | The inception date for Class A shares is 11-5-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Does not reflect the effect of sales charges, if any. |
| 5 | Not annualized. |
| 6 | Annualized. Certain expenses are presented unannualized. |
| 7 | Portfolio turnover is shown for the period from 9-1-21 to 3-31-22. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 17 |
| CLASS C SHARES Period ended | 3-31-24 | 3-31-23 | 3-31-221 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $13.16 | $17.21 | $22.29 |
| Net investment loss2 | (0.21) | (0.17) | (0.13) |
| Net realized and unrealized gain (loss) on investments | 2.91 | (2.96) | (4.95) |
| Total from investment operations | 2.70 | (3.13) | (5.08) |
| Less distributions | | | |
| From net realized gain | — | (0.92) | — |
| Total distributions | — | (0.92) | — |
| Net asset value, end of period | $15.86 | $13.16 | $17.21 |
| Total return (%)3,4 | 20.52 | (17.76) | (22.79)5 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $—6 | $—6 | $—6 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 2.01 | 2.01 | 1.987 |
| Expenses including reductions | 1.94 | 1.93 | 1.927 |
| Net investment loss | (1.50) | (1.28) | (1.77)7 |
| Portfolio turnover (%) | 114 | 102 | 698 |
| 1 | The inception date for Class C shares is 11-5-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Does not reflect the effect of sales charges, if any. |
| 5 | Not annualized. |
| 6 | Less than $500,000. |
| 7 | Annualized. Certain expenses are presented unannualized. |
| 8 | Portfolio turnover is shown for the period from 9-1-21 to 3-31-22. |
| 18 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 3-31-24 | 3-31-23 | 3-31-221 |
| Per share operating performance | | | |
| Net asset value, beginning of period | $13.36 | $17.28 | $22.29 |
| Net investment loss2 | (0.07) | (0.05) | (0.05) |
| Net realized and unrealized gain (loss) on investments | 2.97 | (2.95) | (4.96) |
| Total from investment operations | 2.90 | (3.00) | (5.01) |
| Less distributions | | | |
| From net realized gain | — | (0.92) | — |
| Total distributions | — | (0.92) | — |
| Net asset value, end of period | $16.26 | $13.36 | $17.28 |
| Total return (%)3 | 21.80 | (16.98) | (22.48)4 |
| Ratios and supplemental data | | | |
| Net assets, end of period (in millions) | $3 | $4 | $4 |
| Ratios (as a percentage of average net assets): | | | |
| Expenses before reductions | 1.01 | 1.01 | 0.995 |
| Expenses including reductions | 0.94 | 0.93 | 0.925 |
| Net investment loss | (0.49) | (0.35) | (0.80)5 |
| Portfolio turnover (%) | 114 | 102 | 696 |
| 1 | The inception date for Class I shares is 11-5-21. |
| 2 | Based on average daily shares outstanding. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Not annualized. |
| 5 | Annualized. Certain expenses are presented unannualized. |
| 6 | Portfolio turnover is shown for the period from 9-1-21 to 3-31-22. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 19 |
| CLASS R6 SHARES Period ended | 3-31-24 | 3-31-23 | 3-31-221,2 | 8-31-212 | 8-31-202 | 8-31-192 |
| Per share operating performance | | | | | | |
| Net asset value, beginning of period | $13.38 | $17.29 | $28.81 | $27.74 | $22.24 | $25.90 |
| Net investment loss3 | (0.05) | (0.03) | (0.08) | (0.20) | (0.11) | (0.12) |
| Net realized and unrealized gain (loss) on investments | 2.98 | (2.96) | (4.17) | 8.88 | 8.38 | 0.28 |
| Total from investment operations | 2.93 | (2.99) | (4.25) | 8.68 | 8.27 | 0.16 |
| Less distributions | | | | | | |
| From net realized gain | — | (0.92) | (7.27) | (7.61) | (2.77) | (3.82) |
| Total distributions | — | (0.92) | (7.27) | (7.61) | (2.77) | (3.82) |
| Net asset value, end of period | $16.31 | $13.38 | $17.29 | $28.81 | $27.74 | $22.24 |
| Total return (%)4 | 21.90 | (16.81) | (20.41)5 | 33.87 | 41.40 | 5.71 |
| Ratios and supplemental data | | | | | | |
| Net assets, end of period (in millions) | $301 | $299 | $399 | $631 | $547 | $438 |
| Ratios (as a percentage of average net assets): | | | | | | |
| Expenses before reductions | 0.90 | 0.90 | 0.886 | 0.92 | 0.92 | 0.92 |
| Expenses including reductions | 0.82 | 0.83 | 0.826 | 0.91 | 0.92 | 0.92 |
| Net investment loss | (0.38) | (0.26) | (0.65)6 | (0.72) | (0.51) | (0.54) |
| Portfolio turnover (%) | 114 | 102 | 69 | 91 | 86 | 617 |
| 1 | For the seven-month period ended 3-31-22. The inception date for Class R6 shares is 10-18-21. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31. |
| 2 | Financial highlights presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15, 2021, the Accounting Survivor was reorganized into the fund. On the date of reorganization, the accounting and performance history of the Accounting Survivor was retained as that of the fund. |
| 3 | Based on average daily shares outstanding. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Not annualized. |
| 6 | Annualized. Certain expenses are presented unannualized. |
| 7 | Excludes merger activity. |
| 20 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS NAV SHARES Period ended | 3-31-24 | 3-31-23 | 3-31-221,2 | 8-31-212 | 8-31-202 | 8-31-192 |
| Per share operating performance | | | | | | |
| Net asset value, beginning of period | $13.38 | $17.29 | $28.81 | $27.61 | $22.09 | $25.66 |
| Net investment loss3 | (0.05) | (0.03) | (0.08) | (0.19) | (0.10) | (0.11) |
| Net realized and unrealized gain (loss) on investments | 2.98 | (2.96) | (4.17) | 8.86 | 8.34 | 0.29 |
| Total from investment operations | 2.93 | (2.99) | (4.25) | 8.67 | 8.24 | 0.18 |
| Less distributions | | | | | | |
| From net realized gain | — | (0.92) | (7.27) | (7.47) | (2.72) | (3.75) |
| Total distributions | — | (0.92) | (7.27) | (7.47) | (2.72) | (3.75) |
| Net asset value, end of period | $16.31 | $13.38 | $17.29 | $28.81 | $27.61 | $22.09 |
| Total return (%)4 | 21.90 | (16.86) | (20.37)5 | 33.91 | 41.47 | 5.74 |
| Ratios and supplemental data | | | | | | |
| Net assets, end of period (in millions) | $1,112 | $1,069 | $1,289 | $1,515 | $1,294 | $1,153 |
| Ratios (as a percentage of average net assets): | | | | | | |
| Expenses before reductions | 0.89 | 0.89 | 0.876 | 0.87 | 0.87 | 0.87 |
| Expenses including reductions | 0.81 | 0.82 | 0.816 | 0.86 | 0.87 | 0.87 |
| Net investment loss | (0.37) | (0.24) | (0.65)6 | (0.67) | (0.46) | (0.49) |
| Portfolio turnover (%) | 114 | 102 | 69 | 91 | 86 | 617 |
| 1 | For the seven-month period ended 3-31-22. The Accounting Survivor’s fiscal year end was August 31 and the fund’s fiscal year end is March 31. |
| 2 | Financial highlights presented prior to close of business on October 15, 2021 represents the historical operating results of the Accounting Survivor. At the close of business on October 15, 2021, the Accounting Survivor was reorganized into the fund. On the date of reorganization, the accounting and performance history of the Accounting Survivor was retained as that of the fund. As a result, the per share operating performance has been adjusted for the prior periods presented to reflect the transaction. The conversion ratio used was 0.98073, as the Accounting Survivor’s net asset value was $28.7711 while the fund’s net asset value was $28.2165 on the date of reorganization. |
| 3 | Based on average daily shares outstanding. |
| 4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 5 | Not annualized. |
| 6 | Annualized. Certain expenses are presented unannualized. |
| 7 | Excludes merger activity. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 21 |
Notes to financial statements
Note 1—Organization
John Hancock Mid Cap Growth Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term growth and capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the 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
| 22 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | |
significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of March 31, 2024, by major security category or type:
| | Total
value at
3-31-24 | Level 1
quoted
price | Level 2
significant
observable
inputs | Level 3
significant
unobservable
inputs |
| Investments in securities: | | | | |
| Assets | | | | |
| Common stocks | $1,422,414,318 | $1,422,414,318 | — | — |
| Preferred securities | 7,367,404 | — | — | $7,367,404 |
| Short-term investments | 26,841,981 | 26,841,981 | — | — |
| Total investments in securities | $1,456,623,703 | $1,449,256,299 | — | $7,367,404 |
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.
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
| | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 23 |
lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions on the loaned securities, as well as interest on such amounts. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of March 31, 2024, the fund loaned securities valued at $14,806,560 and received $16,016,620 of cash collateral.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended March 31, 2024, the fund had no borrowings under the line of credit. Commitment fees for the year ended March 31, 2024 were $8,094.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of March 31, 2024, the fund has a short-term capital loss carryforward of $156,591,378 and a long-term capital loss carryforward of $105,032,179 available to offset future net realized capital gains. These carryforwards do not expire.
As of March 31, 2024, 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.
| 24 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | |
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended March 31, 2024 and 2023 was as follows:
| | March 31, 2024 | March 31, 2023 |
| Long-term capital gains | — | $92,692,617 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of March 31, 2024, there were no distributable earnings on a tax basis.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to net operating losses and wash sale loss deferrals.
Note 3—Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.875% of the first $200 million of the fund’s aggregate net assets; (b) 0.850% of the next $300 million of the fund’s aggregate net assets; (c) 0.825% of the next $2.7 billion of the fund’s aggregate net assets; (d) 0.800% of the next $500 million of the fund’s aggregate net assets; (e) 0.775% of the next $500 million of the fund’s aggregate net assets and (f) 0.755% of the fund’s aggregate net assets in excess of $4.2 billion. Aggregate net assets include net assets of the fund and Mid Cap Growth Trust, a series of John Hancock Variable Insurance Trust. The Advisor has a subadvisory agreement with Wellington Management Company LLP. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to reduce its management fee by an annual rate of 0.07% of the fund’s average daily net assets. This agreement expires on July 31, 2024, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor 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
| | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 25 |
fund. During the year ended March 31, 2024, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement 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 March 31, 2024, the expense reductions described above amounted to the following:
| Class | Expense reduction |
| Class A | $19,030 |
| Class C | 94 |
| Class I | 2,767 |
| Class | Expense reduction |
| Class R6 | $222,940 |
| Class NAV | 811,054 |
| Total | $1,055,885 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended March 31, 2024, were equivalent to a net annual effective rate of 0.76% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended March 31, 2024, 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 $14,008 for the year ended March 31, 2024. Of this amount, $2,387 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $11,621 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended March 31, 2024, 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
| 26 | JOHN HANCOCK Mid Cap Growth Fund | ANNUAL REPORT | |
retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended March 31, 2024 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $61,294 | $29,767 |
| Class C | 1,204 | 146 |
| Class I | — | 4,356 |
| Class R6 | — | 14,902 |
| Total | $62,498 | $49,171 |
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 March 31, 2024 and 2023 were as follows:
| | Year Ended 3-31-24 | Year Ended 3-31-23 |
| | Shares | Amount | Shares | Amount |
| Class A shares | | | | |
| Sold | 1,028,875 | $14,326,236 | 1,290,175 | $17,142,322 |
| Distributions reinvested | — | — | 68,019 | 838,676 |
| Repurchased | (478,742) | (6,741,548) | (222,809) | (2,940,226) |
| Net increase | 550,133 | $7,584,688 | 1,135,385 | $15,040,772 |
| Class C shares | | | | |
| Sold | 4,547 | $66,048 | 6,534 | $86,368 |
| Distributions reinvested | — | — | 466 | 5,695 |
| Repurchased | (2,554) | (35,570) | (986) | (13,785) |
| Net increase | 1,993 | $30,478 | 6,014 | $78,278 |
| Class I shares | | | | |
| Sold | 84,857 | $1,214,146 | 104,458 | $1,354,698 |
| Distributions reinvested | — | — | 19,443 | 240,504 |
| Repurchased | (209,108) | (2,913,133) | (56,692) | (741,105) |
| Net increase (decrease) | (124,251) | $(1,698,987) | 67,209 | $854,097 |
| | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 27 |
| | Year Ended 3-31-24 | Year Ended 3-31-23 |
| | Shares | Amount | Shares | Amount |
| Class R6 shares | | | | |
| Sold | 765,947 | $10,878,839 | 1,089,384 | $14,697,891 |
| Distributions reinvested | — | — | 1,617,670 | 20,042,927 |
| Repurchased | (4,648,805) | (65,920,269) | (3,472,179) | (46,671,150) |
| Net decrease | (3,882,858) | $(55,041,430) | (765,125) | $(11,930,332) |
| Class NAV shares | | | | |
| Sold | 4,055,049 | $55,532,598 | 9,998,344 | $133,937,239 |
| Distributions reinvested | — | — | 5,775,847 | 71,562,747 |
| Repurchased | (15,776,404) | (230,710,799) | (10,398,844) | (145,648,977) |
| Net increase (decrease) | (11,721,355) | $(175,178,201) | 5,375,347 | $59,851,009 |
| Total net increase (decrease) | (15,176,338) | $(224,303,452) | 5,818,830 | $63,893,824 |
Affiliates of the fund owned 21% and 100% of shares of Class C and Class NAV, respectively, on March 31, 2024. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $1,530,373,938 and $1,757,100,322, respectively, for the year ended March 31, 2024.
Note 7—Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At March 31, 2024, funds within the John Hancock group of funds complex held 74.5% 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 | 25.9% |
| John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 16.0% |
| John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 12.0% |
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:
| 28 | JOHN HANCOCK Mid Cap Growth 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* | 1,600,367 | $44,683,221 | $539,003,390 | $(567,687,496) | $6,180 | $(5,788) | $339,132 | — | $15,999,507 |
| * | Refer to the Securities lending note within Note 2 for details regarding this investment. |
Note 9—Restricted securities
The fund may hold restricted securities which are restricted as to resale and the fund has limited rights to registration under the Securities Act of 1933. Disposal may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. The following table summarizes the restricted securities held at March 31, 2024:
Issuer,
Description | Original
acquisition date | Acquisition
cost | Beginning
share
amount | Shares
purchased | Shares
sold | Ending
share
amount | Value as a
percentage of
net assets | Ending
value |
| Essence Group Holdings Corp. | 5-1-141 | $5,083,384 | 2,958,957 | — | — | 2,958,957 | 0.3% | $3,757,875 |
| Lookout, Inc., Series F | 7-31-141 | 4,276,874 | 392,767 | — | — | 392,767 | 0.2% | 3,609,529 |
| | | | | | | | | $7,367,404 |
| 1 | Reflects original acquisition date of security transferred in a merger with John Hancock Funds II Mid Cap Growth Fund which took place after market close on 10-15-21. |
| | ANNUAL REPORT | JOHN HANCOCK Mid Cap Growth Fund | 29 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Mid Cap Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Mid Cap Growth Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the "Fund") as of March 31, 2024, the related statement of operations for the year ended March 31, 2024, the statements of changes in net assets for each of the two years in the period ended March 31, 2024, including the related notes, and the financial highlights for the years ended March 31, 2024 and 2023, and the period from November 5, 2021 (commencement of operations) through March 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2024 and the financial highlights for the years ended March 31, 2024 and 2023, and the period from November 5, 2021 (commencement of operations) through March 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2024 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
May 8, 2024
We have served as the auditor of one or more investment companies in John Hancock group of funds since 1988.
| 30 | JOHN HANCOCK MID CAP GROWTH 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 March 31, 2024.
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 2024 Form 1099-DIV in early 2025. This will reflect the tax character of all distributions paid in calendar year 2024.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 31 |
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT
Operation of the Liquidity Risk Management Program
This section describes the operation and effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Mid Cap Growth Fund, subject to the oversight of the Board. In order to provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund’s subadvisor, Wellington Management Company LLP (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor and the Board.
The Committee receives monthly reports and holds quarterly in person meetings to review: (1) the current market liquidity environment; (2) new Funds, redemption-in-kind activity reports, liquidity facility usage and other Fund events; (3) monthly liquidity risk assessments of all Funds in the LRMP (which includes illiquid investment monitoring); (4) monthly Fund-level liquidity classifications; (5) quarterly review of Primarily Highly Liquid Fund testing, Highly Liquid Investment Minimum (HLIM) determinations and Reasonably Anticipated Trade Size (RATS) recalibration reports; and (6) other LRMP related material. The Advisor utilizes a third-party vendor on behalf of the Funds, as the liquidity analytics provider. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential liquidity issues. The Committee also monitors and receives regular updates on U.S. and global events, such as the U.S. regional bank crisis, the U.S. government debt ceiling showdown, commercial real estate loans and the Israel/Hamas war that could impact financial markets and overall market liquidity. The Committee also participates in industry group discussions on current market events, operational challenges resulting from regulatory changes and proposals.
The Committee provided the Board at a meeting held on March 25-28, 2024 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any material changes to the LRMP. The report, which covered the period January 1, 2023 through December 31, 2023, included an assessment of important aspects of the LRMP including, but not limited to: (1) key governance functions and personnel; (2) the Funds’ Rule 22e-4 Policy and written LRMP; (3) the design and implementation of required LRMP elements; (4) subadvisor integration; (5) the appropriateness of each Fund’s investment strategy for an open-end fund structure; and (6) other pertinent information used to evaluate the adequacy and effectiveness of the LRMP.
The report provided an update on Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2023 and key initiatives for 2024.
The report also covered material liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part, that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
| 32 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | |
| • | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
Adequacy and Effectiveness
Based on the annual review and assessment conducted by the Committee, the Committee has determined that the LRMP and its controls have been implemented and are operating in a manner that is adequately and effectively managing the liquidity risk of the Fund.
| | ANNUAL REPORT | JOHN HANCOCK MID CAP GROWTH FUND | 33 |
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 | 183 |
| 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 | 178 |
| 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 | 180 |
| 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 | 178 |
| 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), Board Member, Congressional Black Caucus Foundation (since 2024). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| Grace K. Fey, Born: 1946 | 2012 | 183 |
| 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). |
| 34 | JOHN HANCOCK MID CAP 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 |
| Dean C. Garfield, Born: 1968 | 2022 | 178 |
| 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). |
| Deborah C. Jackson, Born: 1952 | 2008 | 181 |
| Trustee | | |
| President, Cambridge College, Cambridge, Massachusetts (2011-2023); 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 | 178 |
| 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 | 178 |
| 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 | 178 |
| 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 MID CAP GROWTH FUND | 35 |
| 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 | 180 |
| 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 (2005-2023, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (2006-2023, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (2004-2023, 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 | 178 |
| 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); Director and Chairman, John Hancock Investment Management LLC (since 2023); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2023); Director and Chairman, John Hancock Investment Management Distributors LLC (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). |
| 36 | JOHN HANCOCK MID CAP 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 MID CAP GROWTH FUND | 37 |
Trustees
Hassell H. McClellan, Chairpersonπ
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Noni L. Ellison
Grace K. Fey
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
Wellington Management Company LLP
Portfolio Managers
Mario E. Abularach, CFA, CMT
Stephen Mortimer
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
State Street Bank and Trust Company
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
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 |
| 38 | JOHN HANCOCK MID CAP GROWTH FUND | ANNUAL REPORT | |
John Hancock family of funds
U.S. EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
Mid Cap Growth
New Opportunities
Regional Bank
Small Cap Core
Small Cap Dynamic 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
Corporate Bond ETF
Disciplined Value International Select ETF
Dynamic Municipal Bond ETF
Fundamental All Cap Core ETF
International High Dividend ETF
Mortgage-Backed Securities ETF
Multifactor Developed International ETF
Multifactor Emerging Markets ETF
Multifactor Large Cap ETF
Multifactor Mid Cap ETF
Multifactor Small Cap ETF
Preferred Income ETF
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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We search the world to find proven portfolio teams with specialized
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Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information of the shareholders of John Hancock Mid Cap Growth Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
5/2024
ITEM 2. CODE OF ETHICS.
As of the end of the year, March 31, 2024, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended March 31, 2024 and 2023. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | March 31, 2024 | March 31, 2023 |
John Hancock Diversified Real Assets Fund | $56,718 | $54,428 |
John Hancock Fundamental Equity Income | | |
Fund1 | 30,289 | 23,252 |
John Hancock Global Climate Action Fund 2 | 25,410 | - |
John Hancock Mid Cap Growth Fund | 55,219 | 52,988 |
Total | $167,636 | $130,668 |
1John Hancock Fundamental Equity Income Fund commenced operations on 6-28-2022.
2John Hancock Global Climate Action Fund commenced operations on 12-19-2023.
(b) Audit-Related Services
Audit-related service fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant The nature of the services provided was affiliated service provider internal controls reviews, reviews related to supplemental regulatory filings, and software licensing fees. Amounts billed to the registrant were as follows:
Fund | March 31, 2024 | March 31, 2023 |
John Hancock Diversified Real Assets Fund | $629 | $586 |
John Hancock Fundamental Equity Income | | |
Fund1 | 629 | 586 |
John Hancock Global Climate Action Fund 2 | - | - |
John Hancock Mid Cap Growth Fund | 629 | 2,386 |
Total | $1,887 | $3,558 |
1John Hancock Fundamental Equity Income Fund commenced operations on 6-28-2022.
2John Hancock Global Climate Action Fund commenced operations on 12-19-2023.
In addition, amounts billed to control affiliates for service provider internal controls reviews were $127,986 and $121,890 for the fiscal years ended March 31, 2024 and 2023, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years ended March 31, 2024 and 2023. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund | March 31, 2024 | March 31, 2023 |
John Hancock Diversified Real Assets Fund | $4,254 | $4,110 |
John Hancock Fundamental Equity Income | | |
Fund1 | 4,254 | 4,110 |
John Hancock Global Climate Action Fund 2 | 4,254 | - |
John Hancock Mid Cap Growth Fund | 4,254 | 4,110 |
Total | $17,016 | $12,330 |
1John Hancock Fundamental Equity Income Fund commenced operations on 6-28-2022.
2John Hancock Global Climate Action Fund commenced operations on 12-19-2023.
(d) All Other Fees
The nature of the services comprising all other fees is advisory services provided to the investment manager. These fees were approved by the registrant's audit committee.
Fund | March 31, 2024 | March 31, 2023 |
John Hancock Diversified Real Assets Fund | $369 | $163 |
John Hancock Fundamental Equity Income | | |
Fund1 | 369 | - |
John Hancock Global Climate Action Fund 2 | - | - |
John Hancock Mid Cap Growth Fund | 369 | 106 |
Total | $1,107 | $269 |
1John Hancock Fundamental Equity Income Fund commenced operations on 6-28-2022.
2John Hancock Global Climate Action Fund commenced operations on 12-19-2023.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service
provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant, for the fiscal year ended March 31, 2024, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates of the registrant was $1,020,785 for the fiscal year ended March 31, 2024 and $1,211,521 for the fiscal year ended March 31, 2023.
(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
Hassel 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 – 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: | May 8, 2024 |
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: | May 8, 2024 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | May 8, 2024 |
