-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VgvSPtwCG6VD21K+AFqDGkrrZfbumLAVx62HnTazfyEdHye8w2/oTjcfm1Apnl0T cxuId651BfdbQVE0FJBnMQ== 0000928816-10-001087.txt : 20100831 0000928816-10-001087.hdr.sgml : 20100831 20100831130002 ACCESSION NUMBER: 0000928816-10-001087 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100831 DATE AS OF CHANGE: 20100831 EFFECTIVENESS DATE: 20100831 FILER: COMPANY DATA: COMPANY CONFORMED NAME: John Hancock Collateral Investment Trust CENTRAL INDEX KEY: 0001465214 IRS NUMBER: 421585103 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-22303 FILM NUMBER: 101049292 BUSINESS ADDRESS: STREET 1: 101 HUNTINGTON AVENUE CITY: BOSTON STATE: MA ZIP: 02199-7603 BUSINESS PHONE: 617-375-1500 MAIL ADDRESS: STREET 1: 101 HUNTINGTON AVENUE CITY: BOSTON STATE: MA ZIP: 02199-7603 0001465214 S000026304 John Hancock Collateral Investment Trust C000079059 John Hancock Collateral Investment Trust N-CSRS 1 a_collatinvest.htm JOHN HANCOCK COLLATERAL INVESTMENT TRUST
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- 22303
 
John Hancock Collateral Investment Trust
(Exact name of registrant as specified in charter) 
 
601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code) 
 
Michael J. Leary
Treasurer
 
601 Congress Street 
 
Boston, Massachusetts 02210
 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: 617-663-4490
 
Date of fiscal year end:  December 31 
 
 
Date of reporting period:  June 30, 2010 

ITEM 1. SCHEDULE OF INVESTMENTS


  John Hancock 
  Collateral Investment Trust 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Semiannual Report   
6.30.10   

 


John Hancock Collateral Investment Trust   
 
Table of Contents   
 
Your expenses  Page 2 
Portfolio summary  Page 3 
Portfolio of investments  Page 4 
Financial statements  Page 9 
Financial highlights  Page 12 
Notes to financial statements  Page 13 
More information  Page 16 

 

1 

 


Your expenses

These examples are intended to help you understand your ongoing operating expenses.

Understanding your 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 going to present only your ongoing operating expenses here.

Actual expenses/actual returns

This example is intended to provide information about your fund’s actual ongoing operating expenses, and is based on your fund’s actual return. It assumes an account value of $1,000.00 on January 1, 2010 with with the same investment held until June 30, 2010.

  Account value  Ending value  Expenses paid during 
  on 1-1-10  on 6-30-10  period ended 6-30-101 
Common       
Shares  $1,000.00  $1,001.10  $0.30 

 

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 June 30, 2010, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Example

[ My account value $8,600.00 / $1,000.00 = 8.6 ] x $[ “expenses paid” from table ] = My actual expenses

Hypothetical example for comparison purposes

This table allows you to compare your 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 your fund’s actual return). It assumes an account value of $1,000.00 on January 1, 2010, with the same investment held until June 30, 2010. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

  Account value  Ending value  Expenses paid during 
  on 1-1-10  on 6-30-10  period ended 6-30-101 
Common       
Shares  $1,000.00  $1,024.50  $0.30 

 

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.

1 Expenses are equal to the Fund's annualized expense ratio of 0.06%, for the Fund's shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

2 

 


Portfolio Summary     
 
    Percentage of Net 
Top 10 Issuers 1  Yield*  Assets 
 
Govco LLC     
07/07/2010 to 09/22/10    0.280 to 0.540%  5.2% 
Bank of Nova Scotia     
07/01/2010 to 08/20/10    0.060 to 0.270%  4.8% 
Societe Generale North America, Inc.     
07/06/10 to 08/27/10   0.240 to 0.420%  4.8% 
UBS Finance (Delaware) LLC     
07/01/10 to 08/13/10    0.140 to 0.295%  4.8% 
Wells Fargo & Company     
08/20/10 to 01/24/11    0.628 to 3.980%  4.7% 
Nestle Capital Corp.     
07/01/10 to 09/24/10    0.010 to 0.300%  4.5% 
General Electric Capital Corp.     
08/20/10 to 02/01/11    0.366 to 4.875%  4.4% 
Jupiter Securitization Company LLC     
07/12/10 to 09/16/10    0.320 to 0.430%  4.0% 
Falcon Asset Securitization Company LLC     
07/08/10 to 09/17/10    0.300 to 0.430%  3.9% 
Bank of America Corp.     
08/01/10 to 08/13/10    0.444 to 0.593%  3.8% 

 

Sector Composition 1,2   
Financials  75% 
Temporary Liquidity Guarantee Program  7% 
Information Technology  6% 
Consumer Staples  5% 
U.S. Government & Agency Obligations  4% 
Consumer Discretionary  1% 
Health Care  1% 
Industrials  1% 
 
Portfolio Composition 1,2   
Commercial Paper  61% 
Corporate Interest-Bearing Obligations  24% 
Temporary Liquidity Guarantee Program  7% 
Asset Backed Securities  4% 
U.S. Government & Agency Obligations  4% 

 

1 As a percentage of net assets on June 30, 2010.

2 Sector investing is subject to greater risks than the market as a whole. Because the Fund may focus on particular sectors of the economy, its performance may depend on the performance of those sectors.

* 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.

3 

 


John Hancock Collateral Investment Trust

As of June 30, 2010 (Unaudited)

Maturity Date  Yield*  Par value  Value 
Asset Backed Securities 3.77%      $244,619,729 
(Cost $244,666,646)       
Bank of America Auto Trust (S)       
02/15/11 0.262%  $15,806,260  15,801,048 
Bank of America Auto Trust, Series 2010-2, Class A1     
07/15/11 0.619  22,000,000  22,001,188 
CNH Equipment Trust       
12/03/10 to 04/15/11 0.354 to 0.421  39,294,188  39,287,945 
Ford Credit Auto Lease Trust (S)       
02/15/11 0.283  18,108,586  18,104,984 
Ford Credit Auto Owner Trust (S)       
12/15/10 0.295  4,476,315  4,475,947 
Hyundai Auto Receivables Trust, Series 2010-A, Class A1     
05/16/11 0.398  21,393,786  21,387,584 
John Deere Owner Trust, Series 2010-A, Class A1     
05/16/11 0.344  74,408,830  74,397,416 
Mercedes-Benz Auto Receivables Trust, Series 2010-1,     
Class A1       
05/13/11 0.309  36,499,040  36,484,663 
Nissan Auto Lease Trust, Series 2010-A, Class A1     
06/15/11 0.561  12,679,641  12,678,954 
Commercial Paper 61.18%      $3,968,882,653 
(Cost $3,968,821,168)       
American Honda Finance Corp.       
07/07/10 to 09/21/10  0.270 to 0.390%  $184,500,000  184,446,725 
AT&T, Inc.       
07/01/10  0.060  28,000,000  28,000,000 
Bank of Nova Scotia       
07/01/10 to 08/20/10  0.060 to 0.270  314,600,000  314,584,388 
Barclays US Funding Corp.       
07/01/10  0.150  50,000,000  50,000,000 
Barclays US Funding LLC       
07/12/10 to 08/25/10  0.350 to 0.400  215,000,000  214,925,300 
BNP Paribas Finance, Inc.       
07/06/10  0.240  30,000,000  29,999,100 
CAFCO LLC (S)       
07/01/10 to 09/15/10  0.230 to 0.520  130,000,000  129,959,950 
CAFCO LLC       
07/14/10  0.290  50,000,000  49,995,000 
Deutsche Bank Financial LLC       
07/01/10  0.010  178,000,000  178,000,000 
Falcon Asset Securitization Company LLC (S)     
07/08/10 to 09/17/10  0.300 to 0.430  218,830,000  218,781,437 
Falcon Asset Securitization Company LLC       
07/14/10 to 07/15/10  0.320 to 0.380  35,000,000  34,998,250 
General Electric Capital Corp.       
07/12/10  0.270  45,000,000  44,998,650 

 

4 

 


John Hancock Collateral Investment Trust

As of June 30, 2010 (Unaudited)

Maturity Date  Yield*  Par value  Value 
Commercial Paper (continued)       
Govco LLC (S)       
07/07/10 to 09/22/10  0.280 to 0.540%  $340,534,000  $340,276,673 
International Business Machines Corp.       
07/08/10  0.110  11,900,000  11,899,286 
John Deere Bank S.A. (S)       
07/21/10  0.170  36,000,000  35,996,600 
John Deere Credit Ltd. (S)       
07/23/10  0.160  17,000,000  16,998,338 
JPMorgan Chase & Company       
07/01/10 to 07/06/10  0.000 to 0.150  25,700,000  25,699,829 
Jupiter Securitization Company LLC (S)       
07/19/10 to 09/16/10  0.320 to 0.430  101,000,000  100,956,360 
Jupiter Securitization Company LLC       
07/12/10 to 07/15/10  0.320 to 0.320  157,684,000  157,664,424 
Nestle Capital Corp. (S)       
08/02/10 to 09/24/10  0.240 to 0.300  290,000,000  289,858,600 
Nestle Capital Corp.       
07/01/10  0.010  3,000,000  3,000,000 
Old Line Funding LLC       
07/07/10 to 07/14/10  0.320 to 0.320  127,118,000  127,114,477 
Old Line Funding LLC (S)       
07/08/10 to 07/08/10  0.270 to 0.280  60,000,000  59,998,800 
Pfizer, Inc. (S)       
07/14/10  0.800  65,000,000  64,994,800 
Rabobank Capital Funding Trust       
07/06/10 to 09/14/10  0.210 to 0.460  186,490,000  186,464,160 
Ranger Funding Company LLC (S)       
07/19/10 to 07/26/10  0.320 to 0.330  26,837,000  26,832,493 
Ranger Funding Company LLC       
07/07/10 to 07/13/10  0.300 to 0.310  125,000,000  124,991,250 
Societe Generale North America, Inc.       
07/06/10 to 08/27/10  0.240 to 0.420  312,100,000  312,041,801 
State Street Corp.       
08/10/10 to 09/09/10  0.380 to 0.480  85,000,000  84,947,100 
UBS Finance (Delaware) LLC       
07/01/10 to 08/13/10  0.140 to 0.295  309,005,000  308,963,750 
United Technologies       
07/01/10  0.050 to 0.070  118,000,000  118,000,000 
Westpac Banking Corp.       
09/28/10  0.380  45,000,000  44,950,500 
Westpac Securities NZ, Ltd.       
01/21/11  0.428  46,000,000  45,989,880 
Yorktown Capital LLC       
07/15/10  0.270  2,555,000  2,554,732 

 

5 

 


John Hancock Collateral Investment Trust

As of June 30, 2010 (Unaudited)

Maturity Date  Yield*  Par value  Value 
Corporate Interest-Bearing Obligations 24.48%    $1,588,000,754 
(Cost $1,588,698,352)       
Abbey National Treasury Services PLC (P)       
12/10/10  0.390%  $23,000,000  22,994,710 
American Honda Finance Corp. (S)       
12/15/10  5.125  16,500,000  16,794,872 
Bank of America Corp.       
08/01/10  4.500  60,611,000  60,735,675 
Bank of America Corp.(P)       
08/02/10 to 08/13/10  0.444 to 0.593  188,105,000  188,118,570 
Bank of America NA (P)       
01/27/11  0.447  70,000,000  70,014,770 
Bank of Nova Scotia (P)       
07/15/10  0.303  15,000,000  15,000,300 
BNP Paribas Finance, Inc.       
07/01/10  0.030  129,300,000  129,300,000 
Credit Suisse USA, Inc. (P)       
08/16/10  0.636  39,100,000  39,104,809 
General Electric Capital Corp.       
10/21/10  4.875  10,000,000  10,116,940 
General Electric Capital Corp. (P)       
08/20/10 to 02/01/11  0.366 to 0.794  276,704,000  276,894,007 
JPMorgan Chase & Company (P)       
01/17/11  0.474  132,828,000  132,911,814 
The Bank of New York Mellon Corp.       
01/14/11  4.950  7,385,000  7,537,308 
Toronto-Dominion Bank (P)       
07/13/10  0.298  50,000,000  49,998,000 
US Bancorp       
07/29/10  4.500  45,740,000  45,838,341 
US Central Federal Credit Union (P)       
10/19/11  0.304  23,000,000  22,984,601 
Wachovia Corp. (P)       
07/26/10  0.386  25,000,000  25,003,475 
Wal-Mart Stores, Inc.       
07/01/10 to 08/15/10  4.125 to 4.750  27,851,000  27,878,217 
Wells Fargo & Company       
10/29/10  3.980  51,282,000  51,702,256 
Wells Fargo & Company (P)       
08/20/10 to 01/24/11  0.628 to 0.766  252,900,000  253,089,715 
Westpac Banking Corp. (P)(S)       
08/13/10 to 12/11/10  0.387 to 0.423  142,000,000  141,982,374 
 
Temporary Liquidity Guarantee Program (X) 6.90%    $447,671,298 
(Cost $446,032,807)       
Bank of America Corp. (P)       
06/22/12  0.738%  $41,000,000  41,283,392 
Bank of America NA (P)       
09/13/10  0.566  19,000,000  19,012,692 

 

6 

 


John Hancock Collateral Investment Trust

As of June 30, 2010 (Unaudited)

Maturity Date  Yield*  Par value  Value 
Temporary Liquidity Guarantee Program (X) (continued)     
Citibank NA(P)       
07/12/11 to 11/15/12  0.391 to 0.528%  $86,000,000  $86,216,403 
Citigroup Funding, Inc. (P)       
07/30/10 to 03/30/12  0.438 to 0.833  29,000,000  28,996,461 
Citigroup, Inc. (P)       
12/09/11  1.150  22,340,000  22,591,057 
General Electric Capital Corp. (P)       
03/11/11 to 03/12/12  0.617 to 0.736  18,000,000  18,079,844 
JPMorgan Chase & Company       
12/01/10  2.625  25,000,000  25,230,225 
JPMorgan Chase & Company (P)       
02/23/11 to 12/26/12  0.564 to 0.787  60,000,000  60,339,529 
Morgan Stanley (P)       
02/10/12 to 06/20/12  0.654 to 0.889  55,000,000  55,396,613 
PNC Funding Corp. (P)       
04/01/12  0.733  10,000,000  10,058,890 
State Street Bank & Trust Company (P)       
09/15/11  0.737  10,000,000  10,039,690 
The Goldman Sachs Group, Inc. (P)       
11/09/11 to 03/15/12  0.624 to 0.737  36,000,000  36,149,052 
The Huntington National Bank (P)       
06/01/12  0.938  18,000,000  18,182,664 
Union Bank NA (P)       
03/16/12  0.737  6,000,000  6,031,656 
Wells Fargo & Company (P)       
06/15/12  0.757  10,000,000  10,063,130 
 
U.S. Government & Agency Obligations 3.62%    $235,094,160 
(Cost $235,000,000)       
Federal Home Loan Bank       
04/13/11 to 06/24/11  0.570 to 0.750%  $235,000,000  235,094,160 
Total investments (Cost $6,483,218,973)† 99.95%    $6,484,268,594 
Other assets and liabilities, net 0.05%      $2,985,547 
Total net assets 100.00%      $6,487,254,141 

 

The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.

(P) Variable rate obligation. The coupon rate shown represents the rate at period end.

(S) 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. Rule 144A securities amounted to $1,481,813,276 or 22.85% of the Fund's net assets as of June 30, 2010.

(X) These securities are issued under the Temporary Liquidity Guarantee and are insured by the Federal Deposit Insurance Corporation.

* 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.

7 

 


John Hancock Collateral Investment Trust

As of June 30, 2010 (Unaudited)

† At June 30, 2010, the aggregate cost of investment securities for federal income tax purposes was $6,483,218,973. Net unrealized appreciation aggregated $1,049,621, of which $1,893,421 related to appreciated investment securities and $843,800 related to depreciated investment securities.

8 

 


John Hancock Collateral Investment Trust

Statement of Assets and Liabilities — June 30, 2010 (Unaudited)

Assets   
Investments, at value (Cost $6,483,218,973)  $6,484,268,594 
Cash  3,707 
Interest receivable  4,746,484 
Total assets  6,489,018,785 
 
 
Liabilities   
Distributions payable  1,579,102 
Payable to affiliates   
Chief compliance officer fees  2,877 
Transfer agent fees  8,217 
Trustees' fees  14,259 
Other liabilities and accrued expenses  160,189 
Total liabilities  1,764,644 
 
 
Net assets   
Capital paid-in  $6,486,210,547 
Accumulated net realized loss on investments  (6,027) 
Net unrealized appreciation on investments  1,049,621 
Net assets  $6,487,254,141 
 
 
Net asset value per share   
 
Based on 648,140,506 shares of beneficial   
interest outstanding — unlimited number of   
shares authorized with no par value  $10.01 

 

The accompanying notes are an integral part of the financial statements.

9 

 


John Hancock Collateral Investment Trust

Statement of Operations — June 30, 2010 (Unaudited)

Investment income   
Interest  $8,733,409 
 
Expenses   
Investment management fees (Note 4)  1,048,772 
Accounting and legal services fees (Note 4)  198,557 
Transfer agent fees (Note 4)  49,589 
Trustees' fees (Note 4)  25,790 
Professional fees  75,231 
Custodian fees  208,331 
Registration and filing fees  8,719 
Chief compliance officer fees (Note 4)  17,356 
Other  63,741 
Total expenses  1,696,086 
 
Net investment income  7,037,323 
 
Realized and unrealized gain (loss)   
 
Net realized loss on investments  (6,027) 
Change in net unrealized appreciation   
(depreciation) on investments  (515,241) 
 
 
Net realized and unrealized loss  (521,268) 
 
Increase in net assets from operations  $6,516,055 

 

The accompanying notes are an integral part of the financial statements.

10 

 


John Hancock Collateral Investment Trust

Statements of Changes in Net Assets

  For the six-   
   month period  
  ended  Period ended 
   6/30/10 12/31/091 
  (Unaudited)   
Increase (decrease) in net assets     
From operations     
Net investment income  $7,037,323  $6,319,754 
Net realized loss  (6,027)  — 
Change in net unrealized appreciation     
(depreciation)  (515,241)  1,564,862 
Increase in net assets resulting from     
operations  6,516,055  7,884,616 
 
Distributions to shareholders     
From net investment income  (6,892,502)  (6,464,575) 
From Fund share transactions (Note 5)  1,586,716,675  4,899,493,872 
 
Total increase  1,586,340,228  4,900,913,913 
Net assets     
Beginning of period  4,900,913,913  — 
End of period  $6,487,254,141  $4,900,913,913 
Accumulated distributions in excess of net     
investment income  —  ($144,821) 


1 Period from 6-1-09 (inception date) to 12-31-09.

The accompanying notes are an integral part of the financial statements.

11 

 


John Hancock Collateral Investment Trust

Financial Highlights (For a share outstanding throughout the period)

Period ended  6/30/101  12/31/092 
Per share operating performance     
Net asset value, beginning of period  $10.01  $10.00 
Net investment income3  0.01  0.02 
Net realized and unrealized gain on investments  —  0.01 
Total from investment operations  0.01  0.03 
 
Less distributions     
Net investment income  (0.01)  (0.02) 
Net asset value, end of period  $10.01  $10.01 
Total Return (%)4,5  0.11  0.29 
 
Ratios and supplemental data     
Net Assets, end of period (in millions)  $6,487  $4,901 
Ratios (as a percentage of average net assets)     
Expenses  0.066  0.097 
Net investment income  0.236  0.297 
Portfolio Turnover Rate (%)  57  9 

 

1 Semiannual period from 1-1-10 to 6-30-10. Unaudited.

2 Period from 6-1-09 (inception date) to 12-31-09.

3 Based on the average daily shares outstanding.

4 Assumes dividend reinvestment (if applicable).

5 Not annualized.

6 Annualized.

7 All expenses have been annualized except organizational fees, which were 0.01% of average net assets and are non-recurring. This expense decreased the net investment income by less than $0.005 and the net investment income ratio by 0.01%.

The accompanying notes are an integral part of the financial statements.

12 

 


John Hancock Collateral Investment Trust (unaudited)

Notes to financial statements

Note 1 - Organization

John Hancock Collateral Investment Trust (the Fund) is a Massachusetts business trust organized on May 19, 2009. The Fund is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Fund is the successor to John Hancock Cash Investment Trust (CIT). The Fund acquired all the assets and liabilities of CIT in a non-taxable exchange for shares of the Fund. The Fund commenced operations on June 1, 2009 upon the completion of this transaction. The current investors in the Fund are affiliated funds of Jo hn Hancock Mutual Funds family of funds. The Fund serves as an investment vehicle for cash collateral received by the affiliated funds for securities lending.

The investment objective of the Fund is to maximize income, while maintaining adequate liquidity, safeguarding the return of principal and minimizing risk of default. The Fund invests only in U.S. dollar denominated securities rated within the two highest short-term credit categories and their unrated equivalents. The Fund is a floating net asset value (NAV) fund and its NAV may fluctuate.

Note 2 - Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. 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 close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. 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 quoted prices in active markets for identical securities. Level 2 includes 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 techniques are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes significant unobservable inputs when mar ket prices are not readily available or reliable, including the Fund’s own assumptions in determining the fair value of investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. All investments as listed in the Portfolio of Investments at June 30, 2010, are Level 2 under the hierarchy discussed above. Debt obligations, including short term debt investments, are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied quotes and electronic data processing techniques, which take 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 quotes. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Debt obligations, for which there are no prices available from an independent pricing service, are valued based on broker quotes or fair valued as determined in good faith by the Fund’s pricing committee in accordance with procedures adopted by the Board of Trustees.

Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be

13 

 


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.

Expenses. 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 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 December 31, 2009, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund’s federal tax return is subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains. The Fund records distributions to affiliated fund shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Fund generally declares dividends daily and pays them monthly. Capital gain distributions net of fee paid to the affiliated fund security lending agent, if any, are distributed annually.

Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Material 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 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.

Note 3 - Guarantees and indemnifications

Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to 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

MFC Global Investment Management (U.S.), LLC (the Adviser) serves as investment adviser for the Fund. John Hancock Funds, LLC (the Placement Agent) performs services related to the offering and sale of shares of the Fund. The Adviser, and affiliate of the Fund, and the Placement Agent are indirect wholly owned subsidiary of Manulife Financial Corporation.

Management fee. The Fund has an investment management contract with the Adviser. Under the investment management contract, the Fund pays a daily management fee to the Adviser equivalent, on an annual basis, to the sum of: (a) 0.05% of the first $1,500,000,000 of the Fund’s average daily net assets and (b) 0.03% of the Fund’s average daily net assets in excess of $1,500,000,000.

The investment management fees incurred for the six months ended June 30, 2010, were equivalent to an annual effective rate of 0.035% of the Fund’s average daily net assets.

Placement Agent fee. The Fund has an agreement with the Placement Agent. Under the agreement the Fund pays a fee of $100 per year as compensation for the services to be rendered by the Placement Agent, plus any expenses.

14 

 


Accounting and legal services. The Fund has an agreement with the affiliates of the Adviser to perform necessary tax, accounting, compliance, legal and other administrative services of the Fund. The Fund pays the affiliates, monthly in arrears for these services at a rate of 0.02% of the Fund’s average daily net assets, up to a maximum of $400,000 annually. The accounting and legal service fees incurred for the six month period ended June 30, 2010, were equivalent to an annual effective rate of 0.01% of the Fund’s average daily net assets.

Chief Compliance Officer services. The Fund has contracted with the Adviser’s Chief Compliance Office (CCO) to provide certain services, including on-going evaluation of the Fund’s Federal Security Law policies and procedures. In addition, the CCO will provide annual reporting to the Board of Trustees detailing the results of this review. The Fund pays an annual flat rate of $35,000 to the Adviser, paid monthly in arrears, for these services.

Trustee expenses. The Fund compensates each Trustee who is not an employee of the Adviser or its affiliates.

Transfer agent fees. The Fund has a transfer agent agreement with the Adviser and John Hancock Signature Services, Inc. (Transfer Agent), an affiliate of the Adviser. The Fund pays the Transfer Agent monthly a fee which is based on an annual rate of $100,000. The Fund also pays certain out-of-pocket expenses.

Note 5 - Fund share transactions

Transactions in Fund shares for the periods ended June 30, 2010 and December 31, 2009, along with the corresponding dollar value:

  For the six-month period ended  Period ended 
  6/30/10  12/31/091 
 
 
  Shares  Amount  Shares  Amount 
 
 
Common shares         
Sold  1,723,322,284  $17,248,173,912  1,617,448,284  $16,190,461,263 
Issued in acquisition of CIT  —  —  175,181,953  1,751,819,527 
Repurchased  (1,564,808,666)  (15,661,457,237)  (1,303,003,349)  (13,042,786,918) 
 
 
Net increase  158,513,618  $1,586,716,675  489,626,888  $4,899,493,872 
 
 

 

1 Period from 6-1-09 (inception date) to 12-31-09.

Note 6 - Purchase and sale of securities

Purchases and proceeds from sales or maturities of securities, other than short-term securities, during the six month period ended June 30, 2010, aggregated $784,350,000 and $641,667,020, respectively.

15 

 


More information   
 
 
Trustees  Investment adviser 
Harlan D. Platt*  MFC Global Investment Management (U.S.), LLC 
John A. Frabotta*   
Frank Saeli†  Placement agent 
*Member of the Audit Committee  John Hancock Funds, LLC 
†Non-Independent Trustee   
  Custodian 
Officers  State Street Bank and Trust Company 
Barry H. Evans   
President and Chief Executive Officer  Transfer agent 
Carolyn M. Flanagan  John Hancock Signature Services, Inc. 
Secretary and Chief Legal Officer   
Thomas M. Kinzler  Legal counsel 
Assistant Secretary  K&L Gates LLP 
William E. Corson   
Chief Compliance Officer        
Francis V. Knox, Jr.  The report is certified under the Sarbanes-Oxley Act, which 
Assistant Chief Compliance Officer  requires mutual funds and other public companies to affirm 
Charles A. Rizzo  that, to the best of their knowledge, the information in their 
Chief Financial Officer  financial reports is fairly and accurately stated in all material 
Diane Landers  respects.       
Chief Administrative Officer   
Michael J. Leary   
Treasurer   
Ismail Gunes   
Assistant Treasurer   

 

The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q.
The Fund’s Form N-Q is available on the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee)
at the SEC’s Public Reference Room in Washington, DC. Call 1-800-SEC-0330 to receive information on the operation of
the SEC's Public Reference Room.

16 

 


ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

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.

Not applicable.

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 registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.


(a) 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) Contact person at the registrant.


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 Collateral Investment Trust 
 
By: /s/ Barry H. Evans
------------------------------ 
Barry H. Evans 
President and Chief Executive Officer 
 
 
Date: August 23, 2010 

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/ Barry H. Evans 
  ------------------------------- 
  Barry H. Evans 
  President and Chief Executive Officer 
 
 
Date:  August 23, 2010 
 
 
By:  /s/ Charles A. Rizzo
  ------------------------------- 
  Charles A. Rizzo 
  Chief Financial Officer 
 
 
Date:  August 23, 2010 

 

 EX-99.CERT 2 b_collatinvcerts.htm CERTIFICATION e_collatinvcerts.htm

CERTIFICATION

I, Barry H. Evans, certify that:

1. I have reviewed this report on Form N-CSR of the John Hancock Collateral Investment Trust (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 23, 2010  /s/ Barry H. Evans
  Barry H. Evans 
  President and 
  Chief Executive Officer 

 


CERTIFICATION

I, Charles A. Rizzo, certify that:

1. I have reviewed this report on Form N-CSR of the John Hancock Collateral Investment Trust (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 23, 2010  /s/ Charles A. Rizzo
  Charles A. Rizzo 
  Chief Financial Officer 

 

 EX-99.906 CERT 3 c_jhcitcertnos.htm CERTIFICATION 906 f_jhcitcertnos.htm
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to 
Section 906 of the Sarbanes-Oxley Act of 2002

 

In connection with the attached Report of John Hancock Collateral Investment Trust (the “registrant”) on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the registrant does hereby certify that, to the best of such officer's knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report.

/s/ Barry H. Evans
-------------------------------- 
Barry H. Evans 
President and Chief Executive Officer 
 
 
Dated: August 23, 2010 
 
 
/s/ Charles A. Rizzo
-------------------------------- 
Charles A. Rizzo 
Chief Financial Officer 
 
 
Dated: August 23, 2010 

 

A signed original of this written statement, required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

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