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<SEC-DOCUMENT>0001010521-01-500296.txt : 20020413
<SEC-HEADER>0001010521-01-500296.hdr.sgml : 20020413
ACCESSION NUMBER: 0001010521-01-500296
CONFORMED SUBMISSION TYPE: 497
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20011217
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: HANCOCK JOHN DECLARATION TRUST
CENTRAL INDEX KEY: 0001003457
STANDARD INDUSTRIAL CLASSIFICATION: []
STATE OF INCORPORATION: MA
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 497
SEC ACT: 1933 Act
SEC FILE NUMBER: 033-64465
FILM NUMBER: 1814885
BUSINESS ADDRESS:
STREET 1: 101 HUNTINGTON AVE
CITY: BOSTON
STATE: MA
ZIP: 02199-7603
BUSINESS PHONE: 6173751702
MAIL ADDRESS:
STREET 1: 101 HUNTINGTON AVE
CITY: BOSTON
STATE: MA
ZIP: 02199-7603
</SEC-HEADER>
<DOCUMENT>
<TYPE>497
<SEQUENCE>1
<FILENAME>dec.txt
<DESCRIPTION>JOHN HANCOCK DECLARATION TRUST
<TEXT>
John Hancock
Declaration Funds
Prospectus
December 14, 2001
- --------------------------------------------------------------------------------
V.A. Sovereign Investors Fund
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved this fund or determined whether the information in this
prospectus is adequate and accurate. Anyone who indicates otherwise is
committing a federal crime.
[LOGO](R)
------------------
JOHN HANCOCK FUNDS
<PAGE>
Contents
- --------------------------------------------------------------------------------
A summary of the fund's V.A. Sovereign Investors Fund 4
goals, strategies, risks,
performance and financial
highlights.
Transaction policies and Account information
other information affecting Buying and selling fund shares 6
your fund investment. Valuing fund shares 6
Fund expenses 6
Dividends and taxes 6
Further information on the Fund details
fund. Business structure 7
For more information back cover
<PAGE>
V.A. Sovereign Investors Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks long-term growth of capital and income without
assuming undue market risks. To pursue these goals, the fund normally invests at
least 80% of its stock investments in a diversified portfolio of companies with
market capitalizations within the range of the Standard & Poor's 500 Index. On
November 30, 2001, that range was $503 million to $382 billion.
At least 65% of the fund's stock in-vestments are "dividend performers" --
companies whose dividend payments have increased steadily for ten years. The
managers use fundamental financial analysis to identify individual companies
with high-quality income statements, substantial cash reserves and identifiable
catalysts for growth, which may be new products or benefits from industry-wide
growth. The managers generally visit companies to evaluate the strength and
consistency of their management strategy. Finally, the managers look for stocks
that are reasonably priced relative to their earnings and industry.
Historically, companies that meet these criteria have tended to have large or
medium market capitalizations.
The fund may not invest more than 5% of assets in any one security. The fund may
invest in bonds of any maturity, with up to 5% of assets in junk bonds rated as
low as C and their unrated equivalents.
The fund typically invests in U.S. companies but may invest in
dollar-denominated foreign securities. It may also make limited use of certain
derivatives (investments whose value is based on indexes).
Under normal conditions, the fund may not invest more than 10% of assets in cash
or cash equivalents.
In abnormal market conditions, the fund may temporarily invest extensively in
investment-grade short-term securities. In these and other cases, the fund might
not achieve its goal.
================================================================================
PORTFOLIO MANAGERS
John F. Snyder III
- -----------------------------------
Executive vice president of adviser
Joined fund team in 1996
Joined adviser in 1991
Began business career in 1971
Barry H. Evans, CFA
- -----------------------------------
Senior vice president of adviser
Joined fund team in 1996
Joined adviser in 1986
Began business career in 1986
Peter M. Schofield, CFA
- -----------------------------------
Vice president of adviser
Joined fund team in 1996
Joined adviser in 1996
Portfolio manager at Geewax,
Terker & Co. (1984-1996)
Began business career in 1984
PAST PERFORMANCE
[Clip Art] The graph shows how the fund's total return has varied from year to
year, while the table shows performance over time (along with a broad-based
market index for reference). This information may help provide an indication of
the fund's risks. All figures assume dividend reinvestment but do not include
variable contract charges (see attached variable product prospectus). Past
performance does not indicate future results.
- --------------------------------------------------------------------------------
Year-by-year total returns -- calendar years
- --------------------------------------------------------------------------------
1997 1998 1999 2000
28.43% 16.87% 3.84% -0.33%
2001 total return as of September 30: -6.22%
Best quarter: Q4 '98, 15.75%
Worst quarter: Q3 '99, -7.43%
- --------------------------------------------------------------------------------
Average annual total returns -- for periods ending 12/31/00
- --------------------------------------------------------------------------------
Fund Index
1 year -0.33% -9.10%
Life of fund - began 8/29/96 12.73% 19.18%
Index: Standard & Poor's 500 Index, an unmanaged index of 500 stocks.
4
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will fluctuate in response to stock and
bond market movements.
The fund's management strategy will influence performance significantly. Large-
or medium-capitalization stocks as a group could fall out of favor with the
market, causing the fund to underperform funds that focus on
small-capitalization stocks. Medium-capitalization stocks tend to be more
volatile than stocks of larger companies. In addition, if the managers'
securities selection strategies do not perform as expected, the fund could
underperform its peers or lose money.
To the extent that the fund makes investments with additional risks, those risks
could increase volatility or reduce performance:
o Any bonds held by the fund could be downgraded in credit rating or go into
default. Bond prices generally fall when interest rates rise and longer
maturity will increase volatility. Junk bond prices can fall on bad news
about the economy, an industry or a company.
o Certain derivatives could produce disproportionate losses and are
generally considered more risky than direct investments.
o In a down market, higher-risk securities and derivatives could become
harder to value or to sell at a fair price.
o Foreign investments carry additional risks, including inadequate or
inaccurate financial information and social or political instability.
The fund may trade securities actively, which could increase its transaction
costs, thus lowering performance.
Investments in the fund are not bank deposits and are not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency. You
could lose money by investing in this fund.
================================================================================
FINANCIAL HIGHLIGHTS
[Clip Art] This table details the performance of the fund's shares, including
total return information showing how much an investment in the fund has
increased or decreased each year.
Figures audited by Ernst & Young LLP.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Period ended: 12/96(1) 12/97 12/98 12/99 12/00
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $10.00 $10.74 $13.59 $15.61 $15.96
Net investment income (loss)(2) 0.07 0.22 0.27 0.24 0.21
Net realized and unrealized gain (loss) on investments 0.76 2.82 2.00 0.35 (0.27)
Total from investment operations 0.83 3.04 2.27 0.59 (0.06)
Less distributions:
Dividends from net investment income (0.07) (0.18) (0.25) (0.24) (0.21)
Distributions in excess of net investment income -- -- -- --(3) --
Distributions from net realized gain on investments sold (0.02) (0.01) -- -- --
Tax return of capital -- -- -- --(3) --
Total distributions (0.09) (0.19) (0.25) (0.24) (0.21)
Net asset value, end of period $10.74 $13.59 $15.61 $15.96 $15.69
Total investment return(4) (%) 8.30(5,6) 28.43(6) 16.88 3.84 (0.33)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 1,111 12,187 34,170 50,254 55,328
Ratio of expenses to average net assets (%) 0.85(7) 0.85 0.74 0.70 0.72
Ratio of adjusted expenses to average net assets(8) (%) 3.78(7) 1.16 -- -- --
Ratio of net investment income (loss) to average net assets (%) 1.90(7) 1.81 1.88 1.57 1.37
Portfolio turnover rate (%) 17 11 19 26 46
</TABLE>
(1) Began operations on August 29, 1996.
(2) Based on the average of the shares outstanding at the end of each month.
(3) Less than $0.01 per share.
(4) Assumes dividend reinvestment.
(5) Not annualized.
(6) The total returns would have been lower had certain expenses not been
reduced during the periods shown.
(7) Annualized.
(8) Does not take into consideration expense reductions during the periods
shown.
5
<PAGE>
Account Information
- --------------------------------------------------------------------------------
BUYING AND SELLING FUND SHARES
When you invest in the fund through a variable contract, your premium payments
are used to buy units of an insurance company separate account that then buys
shares of the fund. The shares are purchased at net asset value (NAV) and are
generally credited to the separate account immediately after the fund accepts
payment from the insurance company. In unusual circumstances or to protect
shareholders, the fund may refuse a purchase order, especially when the adviser
believes the order might be large enough to disrupt the fund's management. The
fund may also temporarily suspend the offering of its shares.
Shares are sold at the next NAV to be determined after the fund accepts the sell
request. The sales proceeds are normally forwarded by bank wire to the insurance
company on the next business day. In unusual circumstances, the fund may
temporarily suspend the processing of sell requests. It may also postpone the
payment of sales proceeds for up to seven days or longer, as allowed by federal
securities laws.
- --------------------------------------------------------------------------------
VALUING FUND SHARES
The NAV for the fund is determined each business day at the close of business on
the New York Stock Exchange (typically 4:00 P.M. Eastern Time). The Exchange is
typically open Monday through Friday.
Securities in the fund's portfolio are generally valued on the basis of market
quotations and valuations provided by independent pricing services. The fund may
also value securities at fair value, especially if market quotations are not
readily available or if the securities' value has been materially affected by
events following the close of a foreign market. Fair value is determined
according to procedures approved by the fund's board of trustees. If the fund
uses this method, the securities' prices may be higher or lower than the same
securities held by another fund using market quotations.
- --------------------------------------------------------------------------------
FUND EXPENSES
Management fees For the period ended December 31, 2000, the fund paid the
investment adviser management fees at an annual rate of 0.60% of average net
assets.
Expense limitation The adviser may reduce its fee or make other arrangements to
limit the fund's expenses to a specified percentage of average daily net assets.
The adviser has agreed to limit temporarily the fund's expenses to 0.25% of
average net assets, excluding management fees, at least until April 30, 2002. If
annual expenses fall below this limitation at the end of the fund's fiscal year,
the adviser can impose the full fee and recover any other payments up to the
amount of the limitation.
- --------------------------------------------------------------------------------
DIVIDENDS AND TAXES
All income and capital gain distributions are automatically reinvested in
additional shares of the fund at net asset value and are includable in the
separate accounts holding these shares. For a discussion of the tax status of
your variable contract, including the tax consequences of withdrawals or other
payments, refer to the prospectus of your insurance company's separate account.
6 ACCOUNT INFORMATION
<PAGE>
Fund Details
- --------------------------------------------------------------------------------
BUSINESS STRUCTURE
The diagram below shows the basic business structure used by the fund. The
fund's board of trustees oversees the fund's business activities and retains the
services of the various firms that carry out the fund's operations.
The trustees of the fund have the power to change the fund's investment goals
without shareholderor contract holder approval.
The management firm The fund is managed by John Hancock Advisers, Inc. Founded
in 1968, John Hancock Advisers is a wholly owned subsidiary of John Hancock
Financial Services, Inc. and manages approximately $30 billion in assets.
------------------------
Variable
contract holders
------------------------
------------------------
Insurance company
separate accounts
------------------------
------------------------
Declaration
funds
------------------------
---------------------------------------------------
Investment adviser
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, MA 02199-7603
Manages the fund's business and
investment activities.
---------------------------------------------------
---------------------------------------------------
Custodian
The Bank of New York
One Wall Street
New York, New York 10286
Holds the fund's assets, settles all
portfolio trades and collects most of
the valuation data required for
calculating the fund's NAV.
---------------------------------------------------
---------------------------------------------------
Trustees
Oversee the fund's activities.
---------------------------------------------------
FUND DETAILS 7
<PAGE>
For more information
- --------------------------------------------------------------------------------
This prospectus should be used with the variable contract/product prospectus.
Two documents are available that offer further information on the John Hancock
V.A. Sovereign Investors Fund:
Annual/Semiannual Report to Shareholders
Includes financial statements, a discussion of the market conditions and
investment strategies that significantly affected performance, as well as the
auditors' report (in annual report only).
Statement of Additional Information (SAI)
The SAI contains more detailed information on all aspects of the fund. The
current annual report is included in the SAI.
A current SAI has been filed with the Securities and Exchange Commission and is
incorporated by reference into (is legally a part of) this prospectus.
To request a free copy of the current annual/semiannual report or the SAI,
please contact John Hancock:
By mail:
John Hancock Annuity Servicing Office
529 Main St. (X-4)
Charlestown, MA 02129
By phone: 1-800-824-0335
On the Internet: www.jhfunds.com
Or you may view or obtain these documents from the SEC:
In person: at the SEC's Public
Reference Room in Washington, DC.
For access to the Reference Room call
1-202-942-8090
By mail: Public Reference Section
Securities and Exchange Commission
Washington, DC 20549-0102
(duplicating fee required)
By electronic request:
publicinfo@sec.gov
(duplicating fee required)
On the Internet: www.sec.gov
SEC file number: 811-07437
[LOGO](R)
[OLYMPIC LOGO]
WORLDWIDE SPONSOR
John Hancock Funds, Inc.
MEMBER NASD
101 Huntington Avenue
Boston, MA 02199-7603
www.jhfunds.com
Mutual Funds
Institutional Services
Private Managed Accounts
Retirement Plans
Insurance Services
(C)2001 JOHN HANCOCK FUNDS, INC. VA29PN 12/01
<PAGE>
SUPPLEMENT DATED DECEMBER 14, 2001
TO
DECLARATION VARIABLE ANNUITY AND
JOHN HANCOCK DECLARATION FUNDS
PROSPECTUSES
This Supplement is intended to be distributed with the following prospectuses:
. Declaration Variable Annuity prospectuses dated May 1, 2001, as
supplemented, for Declaration variable annuity contracts issued by
John Hancock Life Insurance Company or John Hancock Variable Life
Insurance Company ("Product Prospectuses"), and
. John Hancock Declaration Funds prospectus dated May 1, 2001 for the
V.A. Core Equity, V.A. Bond, V.A. 500 Index, V.A. International,
V.A. Money Market, V.A. Small Cap Growth, V.A. Mid Cap Growth, V.A.
Large Cap Growth, V.A. Regional Bank and V.A. High Yield Bond Funds
("Declaration Prospectus").
SUPPLEMENT TO THE PRODUCT PROSPECTUSES:
Ten of the variable investment options shown on page 1 of the Product
Prospectuses are discontinued and not available as a result of a merger of the
underlying Fund. The discontinued variable investment options are:
. V.A. Core Equity
. V.A. Bond
. V.A. 500 Index
. V.A. International
. V.A. Money Market
. V.A. Small Cap Growth
. V.A. Mid Cap Growth
. V.A. Large Cap Growth
. V.A. Regional Bank
. V.A. High Yield
Any of your contract value in a discontinued variable investment option has
been transferred on the applicable "Merger Date" to the variable investment
option corresponding to an "Acquiring Fund" of John Hancock Declaration Funds.
We describe the "Merger Date" and the "Acquiring Fund" for each of the
discontinued variable investment options in the next section of this supplement.
References in the Product Prospectuses to the discontinued variable investment
options should be disregarded.
DEC SUPP (12/01)
<PAGE>
SUPPLEMENT TO THE DECLARATION PROSPECTUS:
Shareholders of each "Acquired Fund" shown below have approved a specific
plan of reorganization and merger ("Plan") to merge their Fund with the
"Acquiring Fund" shown. Under each Plan, the assets and liabilities of the
Acquired Fund were transferred to and assumed by the applicable Acquiring Fund
on the Merger Date shown.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund Merger Date
- ---------------------------------------------------------------------------------
<S> <C> <C>
V.A. Core Equity VST Growth & Income 12/7/01
- ---------------------------------------------------------------------------------
V.A. Bond VST Active Bond 12/7/01
- ---------------------------------------------------------------------------------
V.A. 500 Index VST Equity Index 12/14/01
- ---------------------------------------------------------------------------------
V.A. International VST International Equity 12/14/01
- ---------------------------------------------------------------------------------
V.A. Money Market VST Money Market 12/14/01
- ---------------------------------------------------------------------------------
V.A. Small Cap Growth VST Small Cap Growth 12/7/01
- ---------------------------------------------------------------------------------
V.A. Mid Cap Growth VST Fundamental Growth 12/7/01
- ---------------------------------------------------------------------------------
V.A. Large Cap Growth VST Growth & Income 12/7/01
- ---------------------------------------------------------------------------------
V.A. Regional Bank V.A. Financial Industries 12/14/01
- ---------------------------------------------------------------------------------
V.A. High Yield Bond V.A. Strategic Income 12/14/01
- ---------------------------------------------------------------------------------
</TABLE>
Each Acquired Fund ceased operations after its Merger Date. References in
the Declaration Prospectus to each Acquired Fund should therefore be
disregarded.
<PAGE>
SUPPLEMENT DATED DECEMBER 14, 2001
TO
PATRIOT VARIABLE ANNUITY,
JOHN HANCOCK DECLARATION FUNDS
AND
JOHN HANCOCK VARIABLE SERIES TRUST I
PROSPECTUSES
This Supplement is intended to be distributed with the following prospectuses:
. Patriot Variable Annuity prospectuses dated May 1, 2001, as
supplemented, ("Product Prospectuses") for Patriot variable annuity
contracts issued by John Hancock Life Insurance Company or John
Hancock Variable Life Insurance Company,
. John Hancock Declaration Funds prospectus dated May 1, 2001 for the
V.A. Core Equity, V.A. Bond, V.A. Money Market, V.A. Small Cap
Growth, V.A. Mid Cap Growth, V.A. Large Cap Growth and V.A. High
Yield Bond Funds ("Declaration Prospectus"), and
. John Hancock Variable Series Trust I prospectus dated May 1, 2001 for
the Large/Mid Cap Value II Fund ("VST Prospectus").
SUPPLEMENT TO PRODUCT PROSPECTUSES:
Eight of the variable investment options shown on page 1 of the Product
Prospectuses are discontinued and not available as a result of a merger of the
underlying Fund. The discontinued variable investment options are:
. V.A. Core Equity
. V.A. Bond
. V.A. Money Market
. V.A. Small Cap Growth
. V.A. Mid Cap Growth
. V.A. Large Cap Growth
. V.A. High Yield
. Large/Mid Cap Value II
Any of your contract value that was in a discontinued variable investment
option has been, or will be, transferred on the applicable "Merger Date" to the
variable investment option corresponding to an "Acquiring Fund" of John Hancock
Variable Series Trust I ("VST") or John Hancock Declaration Funds. We describe
the "Merger Date" and the "Acquiring Fund" for each of the discontinued variable
investment options on the following page.
References in the Product Prospectuses to the discontinued variable
investment options should be disregarded.
PAT SUPP (12/01)
<PAGE>
SUPPLEMENT TO THE DECLARATION PROSPECTUS:
Shareholders of each of the following "Acquired Funds" have approved a
specific plan of reorganization and merger ("Declaration Plan") to merge their
Fund with the "Acquiring Fund" shown. Under each Declaration Plan, the assets
and liabilities of the Acquired Fund were transferred to and assumed by the
applicable Acquiring Fund on the Merger Date shown.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund Merger Date
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
V.A. Core Equity VST Growth & Income 12/7/01
- ---------------------------------------------------------------------------------------------------------
V.A. Bond VST Active Bond 12/7/01
- ---------------------------------------------------------------------------------------------------------
V.A. Money Market VST Money Market 12/14/01
- ---------------------------------------------------------------------------------------------------------
V.A. Small Cap Growth VST Small Cap Growth 12/7/01
- ---------------------------------------------------------------------------------------------------------
V.A. Mid Cap Growth VST Fundamental Growth 12/7/01
- ---------------------------------------------------------------------------------------------------------
V.A. Large Cap Growth VST Growth & Income 12/7/01
- ---------------------------------------------------------------------------------------------------------
V.A. High Yield Bond V.A. Strategic Income 12/14/01
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Each Declaration Acquired Fund ceased operations after its Merger Date.
References in the Declaration Prospectus to each Acquired Fund should be
disregarded.
SUPPLEMENT TO THE VST PROSPECTUS:
On December 13, 2001, shareholders of the Large/Mid Cap Value II Fund approved
a plan of reorganization and merger ("VST Plan") to merge this Fund into the VST
Large/Mid Cap Value Fund ("VST Acquiring Fund"). Under the VST Plan, the assets
and liabilities of the Large/Mid Cap Value II Fund will be transferred to and
assumed by the VST Acquiring Fund on December 19, 2001 ("VST Merger Date").
The VST Large/Mid Cap Value II Fund will cease operations after this date.
References in the VST Prospectus to the VST Large/Mid Cap Value II Fund should
be disregarded after the VST Merger Date.
PAT SUPP (12/01)
<PAGE>
SUPPLEMENT DATED DECEMBER 14, 2001
TO
PROSPECTUSES DATED MAY 1, 2001
This Supplement is intended to be distributed with the following prospectuses:
. Prospectuses dated May 1, 2001, as supplemented, for certain variable
annuity contracts entitled "REVOLUTION VARIABLE ANNUITY" issued by John
Hancock Life Insurance Company ("John Hancock") or John Hancock Variable
Life Insurance Company ("JHVLICO") on or before May 1, 2001 ("Product
Prospectuses"). This supplement replaces the supplement dated May 1, 2001
to the Product Prospectuses,
. John Hancock Declaration Funds prospectus dated May 1, 2001 for the V.A.
Core Equity, V.A. Bond and V.A. Money Market Funds ("Declaration
Prospectus"), and
. John Hancock Variable Series Trust I ("VST") prospectus dated May 1, 2001
for the Large Cap Value CORE/SM/ II, Mid Cap Blend, Aggressive Balanced
and Active Bond II Funds ("VST Prospectus").
SUPPLEMENT TO THE PRODUCT PROSPECTUSES:
Discontinued Variable Investment Options
Seven of the variable investment options under your variable annuity contract
are discontinued and not available as a result of a merger of the underlying
fund. The discontinued variable investment options are:
. V.A. Core Equity
. V.A. Bond
. V.A. Money Market
. Large Cap Value CORE/SM/ II (formerly, "American Leaders Large Cap
Value")
. Mid Cap Blend
. Aggressive Balanced
. Active Bond II (formerly, "Core Bond")
Any of your contract value in a discontinued variable investment option on
the applicable Merger Date has been, or will be, transferred to the variable
investment option corresponding to an "Acquiring Fund." We describe the "Merger
Date" and the "Acquiring Fund" on the following pages of this supplement.
References in the Product Prospectuses to any of the discontinued variable
investment options should be disregarded.
Additional Variable Investment Options
If your contract was issued before May 1, 2001, your contract currently
enables you to invest in three additional variable investment options:
<TABLE>
<CAPTION>
VARIABLE INVESTMENT OPTION MANAGED BY
- -------------------------- ----------
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
John Hancock Advisers, Inc.
V.A. Sovereign Investors. . . . . . . . . . . . . . . . . . . . . . .
Templeton International Securities . . . . . . . . . . . . . . . . . Templeton Investment Counsel, Inc.
Templeton Developing Markets Securities . . . . . . . . . . . . . . . Templeton Asset Management, Ltd.
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
PROD SUP-2 (12/01)
<PAGE>
SUPPLEMENT TO THE PRODUCT PROSPECTUSES - CONTINUED:
Additional Variable Investment Options - continued
If you select any of these additional variable investment options, we will
invest your money in the corresponding fund of the John Hancock Declaration
Trust or the Franklin Templeton Variable Insurance Products Trust (Class 2
Shares). In the Product Prospectuses, the term Series Funds includes Franklin
Templeton Variable Insurance Products Trust, and the term funds includes the
investment options of a Series Fund corresponding to the additional variable
investment options.
The additional variable investment options are each subject to all the terms
and conditions of the contracts and the procedures described in the Product
Prospectuses (including "How can I change my contract's investment allocations?"
beginning on page 18 of the prospectus.)
We may modify or delete any of these additional variable investment options in
the future.
Annual Fund Expenses and Notes to Annual Fund Expenses
The Annual Fund Expenses table beginning on page 5 of the prospectus, and the
accompanying notes to the Annual Fund Expenses Table, are supplemented with the
following information:
<TABLE>
<CAPTION>
Total Fund Total Fund
Investment Distribution and Other Operating Operating Operating
Management Service Expenses With Expenses With Expenses Absent
Fund Name Fee (12b-1) Fees Reimbursement Reimbursement Reimbursement
- --------- ---------- ---------------- --------------- -------------- ------------------
----------------
<S> <C> <C> <C> <C> <C>
JOHN HANCOCK DECLARATION TRUST
(NOTE 1):
V.A. Sovereign Investors . . . . . 0.60% N/A 0.12% 0.72% 0.72%
FRANKLIN TEMPLETON VARIABLE
INSURANCE PRODUCTS TRUST - CLASS 2
SHARES (NOTE 2):
Templeton International Securities 0.67% 0.25% 0.20% 1.12% 1.12%
Templeton Developing Markets 1.25% 0.25% 0.31% 1.81% 1.81%
Securities . . . . . . . . . . .
----------------
</TABLE>
(1) Percentages shown for the above John Hancock Declaration Trust fund
reflects the investment management fees currently payable and other fund
expenses allocated in 2000. John Hancock Advisers, Inc. has agreed to
limit temporarily other expenses of eachsuch fund to 0.25% of the fund's
average daily assets, at least until April 30, 2002.
(2) The Franklin Templeton Variable Insurance Products Trust funds' class 2
distribution plan or "rule 12b-1 plan" is described in the funds'
prospectus.
Supplemental Examples
The following tables supplement the examples contained in the prospectuses
that show the current expenses you would pay, directly or indirectly, on a
$1,000 investment allocated to a variable investment option, assuming a 5%
annual return on assets (but not including any applicable premium taxes or any
fees for optional riders). Actual expense may be greater or less than those
shown.
<PAGE>
SUPPLEMENT TO THE PRODUCT PROSPECTUSES - CONTINUED:
If you "surrender" (turn in) a REVOLUTION Variable Annuity contract at the end
of the applicable time period, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $83 $107 $132 $229
- ---------------------------------------------------------------------------------------
Templeton International Securities $87 $119 $153 $270
- ---------------------------------------------------------------------------------------
Templeton Developing Markets Securities $94 $139 $187 $336
- ---------------------------------------------------------------------------------------
</TABLE>
If you begin receiving payments under one of our REVOLUTION Variable Anuity
payment options at the end of the applicable time period, or if you do not
surrender your contact, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $20 $62 $106 $229
- -------------------------------------------------------------------------------
Templeton International Securities $24 $74 $126 $270
- -------------------------------------------------------------------------------
Templeton Developing Markets $31 $94 $160 $336
Securities. . . . . . .
- -------------------------------------------------------------------------------
</TABLE>
THIS SUPPLEMENT IS ACCOMPANIED WITH PROSPECTUSES DATED MAY 1, 2001 FOR THE JOHN
HANCOCK DECLARATION FUNDS - V.A. SOVEREIGN INVESTORS FUND, THE FRANKLIN
TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST - TEMPLETON INTERNATIONAL SECURITIES
FUND (CLASS 2 SHARES), AND THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS
TRUST - TEMPLETON DEVELOPING MARKETS SECURITIES FUND (CLASS 2 SHARES). THESE
PROSPECTUSES CONTAIN DETAILED INFORMATION ABOUT THE UNDERLYING FUND FOR THE
ADDITIONAL VARIABLE INVESTMENT OPTIONS LISTED IN THIS SUPPLEMENT. BE SURE TO
READ THE PROSPECTUS BEFORE SELECTING THE CORRESPONDING VARIABLE INVESTMENT
OPTION.
SUPPLEMENT TO THE DECLARATION PROSPECTUS:
Shareholders of each of the following "Acquired Funds" have approved a
specific plan of reorganization and merger ("Declaration Plan") to merge their
Fund with the "Acquiring Fund" shown. Under each Declaration Plan, the assets
and liabilities of the Acquired Fund were transferred to and assumed by the
applicable Acquiring Fund on the Merger Date shown.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund Merger Date
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
V.A. Core Equity VST Growth & Income 12/7/01
- ------------------------------------------------------------------------------------------------------
V.A. Bond VST Active Bond 12/7/01
- ------------------------------------------------------------------------------------------------------
V.A. Money Market VST Money Market 12/14/01
- ------------------------------------------------------------------------------------------------------
</TABLE>
Each Declaration Acquired Fund ceased operations after its Merger Date.
References in the Declaration Prospectus to each Acquired Fund should be
disregarded.
<PAGE>
SUPPLEMENT TO THE VST PROSPECTUS:
On December 13, 2001, shareholders of each "Acquired Fund" shown below
approved a specific plan of reorganization and merger ("VST Plan") to merge
their Fund with the VST "Acquiring Fund" shown. Under each Plan, the assets
and liabilities of the Acquired Fund were transferred to and assumed by the
applicable Acquiring Fund on the Merger Date shown.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund
- ----------------------------------------------------------------------------------
<S> <C>
Large Cap Value CORE/SM/ II Large Cap Value CORE/SM/
- ----------------------------------------------------------------------------------
Mid Cap Blend Growth & Income
- ----------------------------------------------------------------------------------
Aggressive Balanced Managed
- ----------------------------------------------------------------------------------
Active Bond II Active Bond
- ----------------------------------------------------------------------------------
</TABLE>
Each Acquired Fund will cease operations after its Merger Date.
Thereafter, references in the VST Prospectus to each Acquired Fund should be
disregarded.
<PAGE>
SUPPLEMENT DATED DECEMBER 14, 2001
TO
PROSPECTUSES DATED MAY 1, 2001
This Supplement is intended to be distributed with the following prospectuses:
. Prospectuses dated May 1, 2001, as supplemented, for certain variable
annuity contracts entitled "REVOLUTION ACCESS," "REVOLUTION EXTRA," or
"REVOLUTION VALUE" issued by John Hancock Life Insurance Company ("John
Hancock") or John Hancock Variable Life Insurance Company ("JHVLICO") on
or before May 1, 2001 ("Product Prospectuses"). This supplement replaces
the supplement dated May 1, 2001 to the Product Prospectuses,
. John Hancock Declaration Funds prospectus dated May 1, 2001 for the V.A.
Core Equity, V.A. Bond and V.A. Money Market Funds ("Declaration
Prospectus"), and
. John Hancock Variable Series Trust I ("VST") prospectus dated May 1, 2001
for the Large Cap Value CORE/SM/ II, Mid Cap Blend, Aggressive Balanced
and Active Bond II Funds ("VST Prospectus").
SUPPLEMENT TO THE PRODUCT PROSPECTUSES:
Discontinued Variable Investment Options
Seven of the variable investment options under your variable annuity contract
are discontinued and not available as a result of a merger of the underlying
fund. The discontinued variable investment options are:
. V.A. Core Equity
. V.A. Bond
. V.A. Money Market
. Large Cap Value CORE/SM/ II (formerly, "American Leaders Large Cap
Value")
. Mid Cap Blend
. Aggressive Balanced
. Active Bond II (formerly, "Core Bond")
Any of your contract value in a discontinued variable investment option on
the applicable Merger Date has been, or will be, transferred to the variable
investment option corresponding to an "Acquiring Fund." We describe the "Merger
Date" and the "Acquiring Fund" on the following pages of this supplement.
References in the Product Prospectuses to any of the discontinued variable
investment options should be disregarded.
Additional Variable Investment Options
If your contract was issued before May 1, 2001, your contract currently
enables you to invest in three additional variable investment options:
<TABLE>
<CAPTION>
VARIABLE INVESTMENT OPTION MANAGED BY
- -------------------------- ----------
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
John Hancock Advisers, Inc.
V.A. Sovereign Investors. . . . . . . . . . . . . . . . . . . . . . .
Templeton International Securities . . . . . . . . . . . . . . . . . Templeton Investment Counsel, Inc.
Templeton Developing Markets Securities . . . . . . . . . . . . . . . Templeton Asset Management, Ltd.
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
PROD SUP-2A (12/01)
<PAGE>
SUPPLEMENT TO THE PRODUCT PROSPECTUSES - CONTINUED:
Additional Variable Investment Options - continued
If you select any of these additional variable investment options, we will
invest your money in the corresponding fund of the John Hancock Declaration
Trust or the Franklin Templeton Variable Insurance Products Trust (Class 2
Shares). In the Product Prospectuses, the term Series Funds includes Franklin
Templeton Variable Insurance Products Trust, and the term funds includes the
investment options of a Series Fund corresponding to the additional variable
investment options.
The additional variable investment options are each subject to all the terms
and conditions of the contracts and the procedures described in the Product
Prospectuses (including "How can I change my contract's investment allocations?"
beginning on page 18 of the prospectus.)
We may modify or delete any of these additional variable investment options in
the future.
Annual Fund Expenses and Notes to Annual Fund Expenses
The Annual Fund Expenses table beginning on page 5 of the prospectus, and the
accompanying notes to the Annual Fund Expenses Table, are supplemented with the
following information:
<TABLE>
<CAPTION>
Total Fund Total Fund
Investment Distribution and Other Operating Operating Operating
Management Service Expenses With Expenses With Expenses Absent
Fund Name Fee (12b-1) Fees Reimbursement Reimbursement Reimbursement
- --------- ---------- ---------------- --------------- -------------- ------------------
----------------
<S> <C> <C> <C> <C> <C>
JOHN HANCOCK DECLARATION TRUST
(NOTE 1):
V.A. Sovereign Investors . . . . . 0.60% N/A 0.12% 0.72% 0.72%
FRANKLIN TEMPLETON VARIABLE
INSURANCE PRODUCTS TRUST - CLASS 2
SHARES (NOTE 2):
Templeton International Securities 0.67% 0.25% 0.20% 1.12% 1.12%
Templeton Developing Markets 1.25% 0.25% 0.31% 1.81% 1.81%
Securities . . . . . . . . . . .
----------------
</TABLE>
(1) Percentages shown for the above John Hancock Declaration Trust fund
reflects the investment management fees currently payable and other fund
expenses allocated in 2000. John Hancock Advisers, Inc. has agreed to
limit temporarily other expenses of each such fund to 0.25% of the fund's
average daily assets, at least until April 30, 2002.
(2) The Franklin Templeton Variable Insurance Products Trust funds' class 2
distribution plan or "rule 12b-1 plan" is described in the funds'
prospectus.
Supplemental Examples
The following tables supplement the examples contained in the prospectuses
that show the current expenses you would pay, directly or indirectly, on a
$1,000 investment allocated to a variable investment option, assuming a 5%
annual return on assets (but not including any applicable premium taxes or any
fees for optional riders). Actual expense may be greater or less than those
shown.
<PAGE>
SUPPLEMENT TO THE PRODUCT PROSPECTUSES - CONTINUED:
Supplemental Examples - REVOLUTION ACCESS
If you "surrender" (turn in) a REVOLUTION ACCESS variable annuity contract at
the end of the applicable time period, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $21 $65 $111 $239
- ------------------------------------------------------------------------------------------------
Templeton International Securities $25 $77 $131 $280
- ------------------------------------------------------------------------------------------------
Templeton Developing Markets Securities $32 $97 $165 $346
- ------------------------------------------------------------------------------------------------
</TABLE>
If you begin receiving payments under one of our REVOLUTION ACCESS annuity
payment options at the end of the applicable time period, or if you do not
surrender your contact, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $21 $65 $111 $239
- -------------------------------------------------------------------------------
Templeton International Securities $25 $77 $131 $280
- -------------------------------------------------------------------------------
Templeton Developing Markets $32 $97 $165 $346
Securities. . . . . . .
- -------------------------------------------------------------------------------
</TABLE>
Supplemental Examples - REVOLUTION EXTRA
If you "surrender" (turn in) a REVOLUTION EXTRA variable annuity contract at
the end of the applicable time period, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $85 $130 $165 $247
- -------------------------------------------------------------------------------------------------
Templeton International Securities $89 $142 $187 $289
- -------------------------------------------------------------------------------------------------
Templeton Developing Markets Securities $96 $164 $224 $358
- -------------------------------------------------------------------------------------------------
</TABLE>
If you begin receiving payments under one of our REVOLUTION EXTRA annuity
payment options at the end of the applicable time period, or if you do not
surrender your contact, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $22 $ 67 $115 $247
- -----------------------------------------------------------------------------------
Templeton International Securities $26 $ 79 $136 $289
- -----------------------------------------------------------------------------------
Templeton Developing Markets Securities $33 $101 $171 $358
- -----------------------------------------------------------------------------------
</TABLE>
Supplemental Examples - REVOLUTION VALUE
If you "surrender" (turn in) a REVOLUTION VALUE variable annuity contract at
the end of the applicable time period, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $84 $110 $137 $239
- ---------------------------------------------------------------------------------------------------
Templeton International Securities $88 $122 $158 $280
- ---------------------------------------------------------------------------------------------------
Templeton Developing Markets Securities $95 $142 $192 $346
- ---------------------------------------------------------------------------------------------------
</TABLE>
If you begin receiving payments under one of our REVOLUTION VALUE annuity
payment options at the end of the applicable time period, or if you do not
surrender your contact, you would pay:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
V.A. Sovereign Investors. $21 $65 $111 $239
- -------------------------------------------------------------------------------
Templeton International Securities $25 $77 $131 $280
- -------------------------------------------------------------------------------
Templeton Developing Markets $32 $97 $165 $346
Securities. . . . . . .
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUPPLEMENT TO THE PRODUCT PROSPECTUSES - CONTINUED:
Condensed Financial Information
The following tables contain selected data to supplement the Condensed
Financial Information table in the applicable prospectus for REVOLUTION ACCESS,
REVOLUTION EXTRA or REVOLUTION VALUE variable annuity contracts.
Revolution Access, Revolution Extra and Revolution Value variable annuity
contracts issued by John Hancock
The following selected data pertains to accumulation shares for the variable
investment options held in John Hancock Variable Annuity Account H.
<TABLE>
<CAPTION>
Period from
Year Ended August 10, 1999
December 31, to December 31,
2000 1999
------------ ----------------
<S> <C> <C>
V.A. SOVEREIGN INVESTORS
Accumulation share value:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . $16.19 $15.78
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $15.94 $16.19
Number of Accumulation Shares outstanding at end of period . . . 1,008,781 146,207
TEMPLETON INTERNATIONAL SECURITIES
Accumulation share value (1):
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . $11.02 $10.00
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $10.63 $11.02
Number of Accumulation Shares outstanding at end of period . . . 502,345 33,891
TEMPLETON DEVELOPING MARKETS
Accumulation share value:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . $11.86 $10.00
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $7.96 $11.86
Number of Accumulation Shares outstanding at end of period . . . 397,174 33,609
</TABLE>
(1) Values shown for 2000 begin on November 1, 2000.
Revolution Access, Revolution Extra and Revolution Value variable annuity
contracts issued by JHVLICO
The following selected data pertains to accumulation shares for the variable
investment options held in John Hancock Variable Annuity Account JF:
<TABLE>
<CAPTION>
Period from
Year Ended August 10, 1999
December 31, to December 31,
2000 1999
------------ ----------------
<S> <C> <C>
V.A. SOVEREIGN INVESTORS
Accumulation share value:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . $16.19 $15.78
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.94 $16.19
Number of Accumulation Shares outstanding at end of period . . . . . . . 507,785 130,910
TEMPLETON INTERNATIONAL SECURITIES
Accumulation share value:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . $11.02 $10.00
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.63 $11.02
Number of Accumulation Shares outstanding at end of period . . . . . . . 304,284 30,062
TEMPLETON DEVELOPING MARKETS
Accumulation share value:
Beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . . $11.86 $10.00
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7.96 $11.86
Number of Accumulation Shares outstanding at end of period . . . . . . . 149,334 13,735
</TABLE>
(1) Values shown for 2000 begin on November 1, 2000.
<PAGE>
SUPPLEMENT TO THE DECLARATION PROSPECTUS:
Shareholders of each of the following "Acquired Funds" have approved a
specific plan of reorganization and merger ("Declaration Plan") to merge their
Fund with the "Acquiring Fund" shown. Under each Declaration Plan, the assets
and liabilities of the Acquired Fund were transferred to and assumed by the
applicable Acquiring Fund on the Merger Date shown.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund Merger Date
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
V.A. Core Equity VST Growth & Income 12/7/01
- ------------------------------------------------------------------------------------------------------
V.A. Bond VST Active Bond 12/7/01
- ------------------------------------------------------------------------------------------------------
V.A. Money Market VST Money Market 12/14/01
- ------------------------------------------------------------------------------------------------------
</TABLE>
Each Declaration Acquired Fund ceased operations after its Merger Date.
References in the Declaration Prospectus to each Acquired Fund should be
disregarded.
SUPPLEMENT TO THE VST PROSPECTUS:
On December 13, 2001, shareholders of each "Acquired Fund" shown below
approved a specific plan of reorganization and merger ("VST Plan") to merge
their Fund with the VST "Acquiring Fund" shown. Under each Plan, the assets
and liabilities of the Acquired Fund were transferred to and assumed by the
applicable Acquiring Fund on the Merger Date shown.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund
- ----------------------------------------------------------------------------------
<S> <C>
Large Cap Value CORE/SM/ II Large Cap Value CORE/SM/
- ----------------------------------------------------------------------------------
Mid Cap Blend Growth & Income
- ----------------------------------------------------------------------------------
Aggressive Balanced Managed
- ----------------------------------------------------------------------------------
Active Bond II Active Bond
- ----------------------------------------------------------------------------------
</TABLE>
Each Acquired Fund will cease operations after its Merger Date.
Thereafter, references in the VST Prospectus to each Acquired Fund should be
disregarded.
THIS SUPPLEMENT IS ACCOMPANIED WITH PROSPECTUSES DATED MAY 1, 2001 FOR THE JOHN
HANCOCK DECLARATION FUNDS - V.A. SOVEREIGN INVESTORS FUND, THE FRANKLIN
TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST - TEMPLETON INTERNATIONAL SECURITIES
FUND (CLASS 2 SHARES), AND THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS
TRUST - TEMPLETON DEVELOPING MARKETS SECURITIES FUND (CLASS 2 SHARES). THESE
PROSPECTUSES CONTAIN DETAILED INFORMATION ABOUT THE UNDERLYING FUND FOR THE
ADDITIONAL VARIABLE INVESTMENT OPTIONS LISTED IN THIS SUPPLEMENT. BE SURE TO
READ THE PROSPECTUS BEFORE SELECTING THE CORRESPONDING VARIABLE INVESTMENT
OPTION.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----