UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
FORM N-Q | |
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED | |
MANAGEMENT INVESTMENT COMPANIES | |
Investment Company Act file number 811-2402 | |
John Hancock Sovereign Bond Fund | |
(Exact name of registrant as specified in charter) | |
601 Congress Street, Boston, Massachusetts 02210 | |
(Address of principal executive offices) (Zip code) | |
Salvatore Schiavone, Treasurer | |
601 Congress Street | |
Boston, Massachusetts 02210 | |
(Name and address of agent for service) | |
Registrant's telephone number, including area code: 617-663-4497 | |
Date of fiscal year end: | May 31 |
Date of reporting period: | February 28, 2011 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
| ||||
Corporate Bonds 51.90% | $533,437,235 | |||
(Cost $502,656,757) | ||||
Consumer Discretionary 6.33% | 65,017,920 | |||
| ||||
Auto Components 0.49% | ||||
Allison Transmission, Inc.(S) | 11.000 | 11/01/15 | $2,375,000 | 2,582,796 |
Exide Technologies(S) | 8.625 | 02/01/18 | 1,115,000 | 1,188,869 |
Tenneco, Inc.(S) | 6.875 | 12/15/20 | 1,170,000 | 1,213,875 |
Auto Manufacturers 0.22% | ||||
Volvo Treasury AB(S) | 5.950 | 04/01/15 | 2,080,000 | 2,272,604 |
Automobiles 0.29% | ||||
Hyundai Capital Services, Inc.(S) | 6.000 | 05/05/15 | 1,615,000 | 1,735,122 |
Hyundai Capital Services, Inc.(S) | 4.375 | 07/27/16 | 1,235,000 | 1,240,381 |
Food Products 0.10% | ||||
Simmons Foods, Inc.(S) | 10.500 | 11/01/17 | 990,000 | 1,066,725 |
Hotels, Restaurants & Leisure 1.67% | ||||
Greektown Superholdings, Inc. | 13.000 | 07/01/15 | 1,965,000 | 2,230,275 |
HRP Myrtle Beach Operations LLC(H)(S) | - | 04/01/12 | 1,075,000 | 0 |
Jacobs Entertainment, Inc. | 9.750 | 06/15/14 | 2,435,000 | 2,471,525 |
Little Traverse Bay Bands of Odawa Indians(S) | 9.000 | 08/31/20 | 725,000 | 652,500 |
MGM Resorts International | 9.000 | 03/15/20 | 490,000 | 535,325 |
Mohegan Tribal Gaming Authority | 7.125 | 08/15/14 | 1,425,000 | 1,043,813 |
MTR Gaming Group, Inc. | 12.625 | 07/15/14 | 750,000 | 798,750 |
MTR Gaming Group, Inc., Series B | 9.000 | 06/01/12 | 1,495,000 | 1,386,613 |
Palace Entertainment Holdings LLC/Palace Entertainment | ||||
Holdings Corp.(S) | 8.875 | 04/15/17 | 950,000 | 969,000 |
Pokagon Gaming Authority(S) | 10.375 | 06/15/14 | 1,815,000 | 1,892,138 |
Seminole Indian Tribe of Florida(S) | 7.750 | 10/01/17 | 500,000 | 530,625 |
Seminole Indian Tribe of Florida(S) | 6.535 | 10/01/20 | 2,260,000 | 2,226,145 |
Turning Stone Resort Casino Enterprises(S) | 9.125 | 09/15/14 | 1,930,000 | 1,983,075 |
Waterford Gaming LLC(S) | 8.625 | 09/15/14 | 953,000 | 445,528 |
Household Durables 0.04% | ||||
American Standard Americas(S) | 10.750 | 01/15/16 | 335,000 | 355,938 |
Household Products 0.05% | ||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC(S) | 6.875 | 02/15/21 | 515,000 | 516,288 |
Internet & Catalog Retail 0.21% | ||||
Expedia, Inc. | 5.950 | 08/15/20 | 2,125,000 | 2,148,906 |
Media 2.40% | ||||
AMC Entertainment, Inc. | 8.750 | 06/01/19 | 525,000 | 563,719 |
AMC Entertainment, Inc. | 8.000 | 03/01/14 | 2,205,000 | 2,238,075 |
Cablevision Systems Corp. | 8.625 | 09/15/17 | 610,000 | 683,200 |
CBS Corp. | 7.875 | 07/30/30 | 1,485,000 | 1,731,825 |
CBS Corp. | 5.900 | 10/15/40 | 945,000 | 895,681 |
CCH II LLC/CCH II Capital Corp. | 13.500 | 11/30/16 | 1,150,089 | 1,393,045 |
CCO Holdings LLC/CCO Holdings Capital Corp. | 8.125 | 04/30/20 | 590,000 | 636,463 |
Cinemark USA, Inc. | 8.625 | 06/15/19 | 725,000 | 790,250 |
Clear Channel Worldwide Holdings, Inc. | 9.250 | 12/15/17 | 1,675,000 | 1,859,250 |
CSC Holdings, Inc. | 7.875 | 02/15/18 | 1,675,000 | 1,867,625 |
DIRECTV Holdings LLC | 6.350 | 03/15/40 | 980,000 | 999,520 |
Grupo Televisa SA | 6.625 | 01/15/40 | 1,295,000 | 1,377,488 |
News America, Inc.(S) | 6.150 | 02/15/41 | 1,100,000 | 1,118,104 |
1 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Consumer Discretionary (continued) | ||||
| ||||
Regal Cinemas Corp. | 8.625 | 07/15/19 | $465,000 | $498,713 |
Regal Entertainment Group | 9.125 | 08/15/18 | 455,000 | 486,850 |
Time Warner Cable, Inc. | 6.750 | 07/01/18 | 1,925,000 | 2,209,748 |
United Business Media, Ltd.(S) | 5.750 | 11/03/20 | 1,145,000 | 1,090,262 |
Videotron Ltee(CAD)(D)(S) | 7.125 | 01/15/20 | 1,720,000 | 1,868,286 |
XM Satellite Radio, Inc.(S) | 13.000 | 08/01/13 | 2,000,000 | 2,385,000 |
Multiline Retail 0.07% | ||||
Sears Holdings Corp.(S) | 6.625 | 10/15/18 | 785,000 | 765,375 |
Personal Products 0.14% | ||||
Revlon Consumer Products Corp. | 9.750 | 11/15/15 | 1,335,000 | 1,448,475 |
Specialty Retail 0.22% | ||||
Empire Today LLC/Empire Today Finance Corp.(S) | 11.375 | 02/01/17 | 660,000 | 689,700 |
Hillman Group, Inc. | 10.875 | 06/01/18 | 820,000 | 902,000 |
Toys R Us Property Company LLC | 8.500 | 12/01/17 | 570,000 | 619,875 |
Textiles, Apparel & Luxury Goods 0.43% | ||||
Burlington Coat Factory Warehouse Corp.(S) | 10.000 | 02/15/19 | 2,345,000 | 2,368,450 |
Levi Strauss & Company | 7.625 | 05/15/20 | 1,975,000 | 2,044,125 |
Consumer Staples 2.36% | 24,313,892 | |||
| ||||
Beverages 0.12% | ||||
Anheuser-Busch InBev Worldwide, Inc.(BRL)(D) | 9.750 | 11/17/15 | 2,000,000 | 1,229,114 |
Commercial Services & Supplies 0.23% | ||||
ARAMARK Corp. | 8.500 | 02/01/15 | 2,305,000 | 2,408,725 |
Food & Staples Retailing 0.35% | ||||
CVS Caremark Corp. (6.302% to 06/01/2012, then 3 month | ||||
LIBOR + 2.065%) | 6.302 | 06/01/37 | 3,635,000 | 3,580,475 |
Food Products 0.83% | ||||
B&G Foods, Inc. | 7.625 | 01/15/18 | 950,000 | 1,014,125 |
Blue Merger Sub, Inc.(S) | 7.625 | 02/15/19 | 945,000 | 954,450 |
Bunge Ltd. Finance Corp. | 8.500 | 06/15/19 | 1,405,000 | 1,668,062 |
Bunge Ltd. Finance Corp. | 5.350 | 04/15/14 | 1,900,000 | 1,990,068 |
Corp. Pesquera Inca SAC(S) | 9.000 | 02/10/17 | 1,355,000 | 1,432,913 |
JBS Finance II, Ltd.(S) | 8.250 | 01/29/18 | 1,450,000 | 1,464,500 |
Household Products 0.19% | ||||
Yankee Candle Company, Inc. | 8.500 | 02/15/15 | 1,875,000 | 1,961,719 |
Tobacco 0.64% | ||||
Alliance One International, Inc. | 10.000 | 07/15/16 | 2,335,000 | 2,410,888 |
Lorillard Tobacco Company | 6.875 | 05/01/20 | 2,225,000 | 2,304,942 |
Philip Morris International, Inc. | 5.650 | 05/16/18 | 1,685,000 | 1,893,911 |
Energy 4.10% | 42,114,895 | |||
| ||||
Energy Equipment & Services 0.23% | ||||
Precision Drilling Corp.(S) | 6.625 | 11/15/20 | 1,205,000 | 1,244,163 |
Trinidad Drilling, Ltd.(S) | 7.875 | 01/15/19 | 1,045,000 | 1,093,331 |
Gas Utilities 0.21% | ||||
DCP Midstream LLC(S) | 9.750 | 03/15/19 | 1,705,000 | 2,206,747 |
Oil, Gas & Consumable Fuels 3.66% | ||||
Anadarko Petroleum Corp. | 6.375 | 09/15/17 | 1,855,000 | 2,067,572 |
Arch Coal, Inc. | 8.750 | 08/01/16 | 510,000 | 569,288 |
2 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Energy (continued) | ||||
| ||||
Bumi Investment Pte, Ltd.(S) | 10.750 | 10/06/17 | $780,000 | $858,975 |
Chesapeake Energy Corp. | 6.125 | 02/15/21 | 975,000 | 994,500 |
Drummond Company, Inc. | 7.375 | 02/15/16 | 1,805,000 | 1,868,175 |
El Paso Pipeline Partners Operating Company LLC | 6.500 | 04/01/20 | 1,045,000 | 1,152,756 |
Energy Transfer Partners LP | 9.700 | 03/15/19 | 1,380,000 | 1,811,541 |
Enterprise Products Operating LLC (7.034% to 01/15/2018, | ||||
then higher of 7.034% or 3 month LIBOR + 2.680%) | 7.034 | 01/15/68 | 1,860,000 | 1,939,050 |
Enterprise Products Operating LLC (7.000% to 06/01/2017, | ||||
then 3 month LIBOR + 2.778%) | 7.000 | 06/01/67 | 2,585,000 | 2,575,306 |
Gibson Energy ULC/GEP Midstream Finance Corp. | 10.000 | 01/15/18 | 1,040,000 | 1,086,800 |
Kerr-McGee Corp. | 6.950 | 07/01/24 | 1,345,000 | 1,507,051 |
Kinder Morgan Energy Partners LP | 7.750 | 03/15/32 | 840,000 | 977,600 |
Linn Energy LLC/Linn Energy Finance Corp.(S) | 8.625 | 04/15/20 | 790,000 | 880,850 |
Marathon Petroleum Corp.(S) | 6.500 | 03/01/41 | 1,115,000 | 1,129,598 |
MarkWest Energy Partners LP/MarkWest Energy Finance | ||||
Corp. | 6.500 | 08/15/21 | 1,405,000 | 1,403,244 |
McMoRan Exploration Company | 11.875 | 11/15/14 | 1,230,000 | 1,349,925 |
Motiva Enterprises LLC(S) | 6.850 | 01/15/40 | 1,060,000 | 1,228,194 |
Niska Gas Storage US LLC/Niska Gas Storage Canada | ||||
ULC(S) | 8.875 | 03/15/18 | 1,600,000 | 1,744,000 |
NuStar Logistics LP | 7.650 | 04/15/18 | 2,025,000 | 2,361,549 |
NuStar Logistics LP | 4.800 | 09/01/20 | 865,000 | 844,388 |
Regency Energy Partners LP/Regency Energy Finance Corp. | 9.375 | 06/01/16 | 1,225,000 | 1,370,469 |
Spectra Energy Capital LLC | 6.200 | 04/15/18 | 1,440,000 | 1,603,367 |
Thermon Industries, Inc. | 9.500 | 05/01/17 | 390,000 | 422,175 |
TransCanada Pipelines, Ltd. (6.350% to 05/15/2017, then 3 | ||||
month LIBOR + 2.210%) | 6.350 | 05/15/67 | 1,945,000 | 1,976,884 |
Williams Partners LP | 7.250 | 02/01/17 | 3,295,000 | 3,847,397 |
Financials 21.24% | 218,306,551 | |||
| ||||
Capital Markets 2.39% | ||||
Credit Suisse AG/Guernsey (3 month LIBOR + 0.690% to | ||||
05/29/17, then 3 month LIBOR + 1.690%) | 1.003 | - (Q) | 2,290,000 | 1,742,530 |
Credit Suisse New York | 5.300 | 08/13/19 | 1,680,000 | 1,769,670 |
Credit Suisse New York | 4.375 | 08/05/20 | 2,265,000 | 2,205,967 |
Jefferies Group, Inc. | 8.500 | 07/15/19 | 665,000 | 786,496 |
Jefferies Group, Inc. | 6.875 | 04/15/21 | 1,240,000 | 1,329,186 |
Macquarie Group, Ltd.(S) | 7.300 | 08/01/14 | 1,085,000 | 1,210,373 |
Macquarie Group, Ltd.(S) | 6.000 | 01/14/20 | 1,345,000 | 1,357,946 |
Morgan Stanley(BRL)(D)(S) | 10.090 | 05/03/17 | 8,215,000 | 4,715,305 |
Morgan Stanley | 7.300 | 05/13/19 | 2,070,000 | 2,357,393 |
The Goldman Sachs Group, Inc. | 6.750 | 10/01/37 | 3,915,000 | 4,012,703 |
The Goldman Sachs Group, Inc. | 6.150 | 04/01/18 | 2,845,000 | 3,116,635 |
Commercial Banks 3.60% | ||||
Australia & New Zealand Banking Group, Ltd.(S) | 4.875 | 01/12/21 | 2,065,000 | 2,099,983 |
Barclays Bank PLC | 5.140 | 10/14/20 | 1,160,000 | 1,100,993 |
BNP Paribas | 5.000 | 01/15/21 | 1,680,000 | 1,693,868 |
BPCE SA (12.500% to 09/30/2019, then 3 month LIBOR + | ||||
12.980%)(S) | 12.500 | - (Q) | 1,239,000 | 1,394,556 |
Chuo Mitsui Trust & Banking Company, Ltd. (5.506% to | ||||
04/15/2015, then 3 month LIBOR + 2.490%)(S) | 5.506 | - (Q) | 2,530,000 | 2,580,600 |
Commonwealth Bank of Australia(S) | 5.000 | 03/19/20 | 2,065,000 | 2,147,517 |
First Tennessee Bank NA | 5.050 | 01/15/15 | 1,620,000 | 1,657,279 |
Huntington Bancshares, Inc. | 7.000 | 12/15/20 | 360,000 | 394,074 |
3 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Financials (continued) | ||||
| ||||
ICICI Bank, Ltd.(S) | 5.750 | 11/16/20 | $1,910,000 | $1,840,020 |
Lloyds TSB Bank PLC | 6.375 | 01/21/21 | 1,765,000 | 1,825,898 |
Lloyds TSB Group PLC (6.413% to 10/01/2035, then 3 month | ||||
LIBOR + 1.496%)(I)(S) | 6.413 | - (Q) | 2,410,000 | 1,837,625 |
National City Bank(P) | 0.673 | 06/07/17 | 2,300,000 | 2,078,236 |
Regions Financial Corp. | 7.750 | 11/10/14 | 1,825,000 | 1,948,188 |
Regions Financial Corp.(P) | 0.472 | 06/26/12 | 1,060,000 | 1,009,045 |
Santander Issuances SA (6.500% to 11/15/2014, then 3 | ||||
month LIBOR + 3.920%)(S) | 6.500 | 08/11/19 | 1,400,000 | 1,427,300 |
Silicon Valley Bank | 6.050 | 06/01/17 | 2,335,000 | 2,456,011 |
State Bank of India/London(S) | 4.500 | 07/27/15 | 1,335,000 | 1,353,406 |
The Royal Bank of Scotland Group PLC | 4.875 | 03/16/15 | 1,275,000 | 1,321,810 |
Wachovia Bank NA | 6.600 | 01/15/38 | 1,415,000 | 1,597,923 |
Wachovia Bank NA | 5.850 | 02/01/37 | 1,665,000 | 1,712,559 |
Wells Fargo & Company | 3.676 | 06/15/16 | 1,505,000 | 1,537,701 |
Wells Fargo Bank NA | 5.750 | 05/16/16 | 1,805,000 | 1,995,270 |
Consumer Finance 1.19% | ||||
American Express Company | 7.000 | 03/19/18 | 2,355,000 | 2,765,323 |
Capital One Financial Corp. | 6.150 | 09/01/16 | 2,655,000 | 2,866,444 |
Discover Bank | 7.000 | 04/15/20 | 1,090,000 | 1,202,093 |
Discover Financial Services | 10.250 | 07/15/19 | 2,400,000 | 3,107,410 |
Nelnet, Inc. (7.400% to 09/29/2011, then 3 month LIBOR + | ||||
3.375%) | 7.400 | 09/29/36 | 2,595,000 | 2,299,302 |
Diversified Financial Services 6.62% | ||||
Astoria Depositor Corp., Series B(S) | 8.144 | 05/01/21 | 3,590,000 | 3,518,200 |
Bank of America Corp. | 6.500 | 08/01/16 | 1,245,000 | 1,397,301 |
Bank of America NA | 6.000 | 10/15/36 | 1,555,000 | 1,517,156 |
Bank of America NA | 5.300 | 03/15/17 | 595,000 | 620,074 |
Beaver Valley Funding | 9.000 | 06/01/17 | 2,737,000 | 3,060,185 |
Bosphorus Financial Services, Ltd.(P)(S) | 2.113 | 02/15/12 | 665,000 | 656,762 |
Citigroup, Inc. | 6.375 | 08/12/14 | 3,120,000 | 3,481,199 |
Citigroup, Inc. | 6.125 | 11/21/17 | 2,925,000 | 3,226,790 |
Citigroup, Inc. | 5.850 | 12/11/34 | 1,590,000 | 1,560,684 |
Crown Castle Towers LLC(S) | 6.113 | 01/15/20 | 1,615,000 | 1,753,460 |
Crown Castle Towers LLC(S) | 4.883 | 08/15/20 | 3,075,000 | 3,083,140 |
ERAC USA Finance LLC(S) | 6.375 | 10/15/17 | 1,665,000 | 1,869,813 |
General Electric Capital Corp. | 6.000 | 08/07/19 | 1,440,000 | 1,591,171 |
General Electric Capital Corp. | 5.625 | 05/01/18 | 2,190,000 | 2,381,581 |
General Electric Capital Corp. | 5.300 | 02/11/21 | 880,000 | 903,350 |
General Electric Capital Corp.(P) | 0.793 | 08/15/36 | 2,245,000 | 1,731,878 |
GTP Towers Issuer LLC(S) | 8.112 | 02/15/15 | 1,820,000 | 1,888,962 |
GTP Towers Issuer LLC(S) | 4.436 | 02/15/15 | 1,955,000 | 2,008,339 |
Harley-Davidson Funding Corp.(S) | 6.800 | 06/15/18 | 1,110,000 | 1,210,947 |
Harley-Davidson Funding Corp.(S) | 5.750 | 12/15/14 | 1,085,000 | 1,154,349 |
International Lease Finance Corp.(S) | 7.125 | 09/01/18 | 1,260,000 | 1,374,975 |
JPMorgan Chase & Company | 6.000 | 01/15/18 | 3,260,000 | 3,625,994 |
JPMorgan Chase & Company | 3.700 | 01/20/15 | 1,170,000 | 1,210,907 |
JPMorgan Chase & Company, Series 1 (7.900% to | ||||
04/30/2018, then 3 month LIBOR + 3.470%) | 7.900 | - (Q) | 2,240,000 | 2,438,262 |
Merrill Lynch & Company, Inc. | 7.750 | 05/14/38 | 1,795,000 | 2,033,597 |
Merrill Lynch & Company, Inc. | 6.875 | 04/25/18 | 2,825,000 | 3,177,862 |
Nationstar Mortgage/Nationstar Capital Corp.(S) | 10.875 | 04/01/15 | 1,805,000 | 1,859,150 |
Pinafore LLC/Pinafore, Inc.(S) | 9.000 | 10/01/18 | 565,000 | 628,563 |
4 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Financials (continued) | ||||
| ||||
Rabobank Nederland NV (11.000% to 06/30/2019, then 3 | ||||
month LIBOR + 10.868%)(S) | 11.000 | - (Q) | $3,204,000 | $4,165,200 |
Textron Financial Corp. (6.000% to 02/15/2017, then 3 month | ||||
LIBOR + 1.735%)(S) | 6.000 | 02/15/67 | 2,115,000 | 1,781,888 |
The Bear Stearns Companies LLC | 7.250 | 02/01/18 | 1,950,000 | 2,297,441 |
USB Realty Corp. (6.091% to 01/15/2012, then 3 month | ||||
LIBOR + 1.147%)(S) | 6.091 | - (Q) | 2,900,000 | 2,330,875 |
Woodside Finance, Ltd.(S) | 4.500 | 11/10/14 | 2,330,000 | 2,462,363 |
Insurance 3.90% | ||||
Aflac, Inc. | 8.500 | 05/15/19 | 1,560,000 | 1,929,469 |
Aflac, Inc. | 6.900 | 12/17/39 | 930,000 | 1,024,546 |
AON Corp. | 8.205 | 01/01/27 | 575,000 | 642,936 |
AXA SA (6.379% to 12/13/2036, then 3 month LIBOR + | ||||
2.256%)(S) | 6.379 | - (Q) | 1,170,000 | 1,060,313 |
Chubb Corp. (6.375% until 04/15/2017, then 3 month LIBOR | ||||
+ 2.250%) | 6.375 | 03/29/67 | 1,270,000 | 1,343,025 |
CNA Financial Corp. | 7.250 | 11/15/23 | 2,140,000 | 2,376,324 |
CNA Financial Corp. | 6.500 | 08/15/16 | 1,085,000 | 1,195,112 |
CNO Financial Group, Inc.(S) | 9.000 | 01/15/18 | 1,500,000 | 1,597,500 |
Hartford Financial Services Group, Inc. | 6.625 | 03/30/40 | 770,000 | 798,925 |
Hartford Financial Services Group, Inc. | 6.300 | 03/15/18 | 1,730,000 | 1,865,308 |
Liberty Mutual Group, Inc.(S) | 7.800 | 03/15/37 | 2,635,000 | 2,635,000 |
Liberty Mutual Group, Inc.(S) | 7.500 | 08/15/36 | 3,070,000 | 3,154,778 |
Lincoln National Corp. | 8.750 | 07/01/19 | 1,295,000 | 1,630,399 |
Lincoln National Corp. | 7.000 | 06/15/40 | 635,000 | 726,851 |
Lincoln National Corp. (6.050% to 04/20/17, then 3 month | ||||
LIBOR + 2.040%) | 6.050 | 04/20/67 | 1,955,000 | 1,869,567 |
Massachusetts Mutual Life Insurance Company(S) | 8.875 | 06/01/39 | 895,000 | 1,204,654 |
MetLife, Inc. | 10.750 | 08/01/39 | 610,000 | 843,325 |
New York Life Insurance Company(S) | 6.750 | 11/15/39 | 1,410,000 | 1,641,050 |
Prudential Financial, Inc. | 6.200 | 11/15/40 | 1,445,000 | 1,528,395 |
Teachers Insurance & Annuity Association of America(S) | 6.850 | 12/16/39 | 2,445,000 | 2,813,351 |
Unum Group | 7.125 | 09/30/16 | 1,585,000 | 1,796,157 |
UnumProvident Finance Company PLC(S) | 6.850 | 11/15/15 | 2,435,000 | 2,720,302 |
W.R. Berkley Corp. | 5.600 | 05/15/15 | 1,460,000 | 1,543,062 |
Willis North America, Inc. | 7.000 | 09/29/19 | 1,915,000 | 2,099,639 |
Real Estate Investment Trusts 3.36% | ||||
BioMed Realty LP | 6.125 | 04/15/20 | 520,000 | 552,010 |
Brandywine Operating Partnership LP | 7.500 | 05/15/15 | 1,505,000 | 1,703,768 |
CommonWealth REIT | 6.650 | 01/15/18 | 1,800,000 | 1,919,225 |
Developers Diversified Realty Corp. | 7.500 | 04/01/17 | 1,840,000 | 2,104,130 |
Dexus Property Group(S) | 7.125 | 10/15/14 | 1,945,000 | 2,187,112 |
Duke Realty LP | 8.250 | 08/15/19 | 1,120,000 | 1,349,464 |
Duke Realty LP | 6.750 | 03/15/20 | 2,095,000 | 2,340,172 |
HCP, Inc. | 5.375 | 02/01/21 | 2,800,000 | 2,859,763 |
Health Care REIT, Inc. | 6.200 | 06/01/16 | 1,835,000 | 2,026,411 |
Health Care REIT, Inc. | 4.950 | 01/15/21 | 1,610,000 | 1,572,336 |
Healthcare Realty Trust, Inc. | 6.500 | 01/17/17 | 2,170,000 | 2,415,292 |
Host Hotels & Resorts, Inc. | 6.000 | 11/01/20 | 1,100,000 | 1,101,375 |
Mack-Cali Realty LP | 7.750 | 08/15/19 | 1,410,000 | 1,693,927 |
Post Apartment Homes LP | 4.750 | 10/15/17 | 735,000 | 704,700 |
ProLogis | 6.625 | 05/15/18 | 2,635,000 | 2,914,062 |
Reckson Operating Partnership LP | 7.750 | 03/15/20 | 735,000 | 828,154 |
Simon Property Group LP | 10.350 | 04/01/19 | 1,495,000 | 2,052,342 |
5 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Financials (continued) | ||||
| ||||
Vornado Realty LP | 4.250 | 04/01/15 | $2,815,000 | $2,890,110 |
WEA Finance LLC/WT Finance Australia Pty, Ltd.(S) | 6.750 | 09/02/19 | 1,180,000 | 1,348,928 |
Real Estate Management & Development 0.18% | ||||
Country Garden Holdings Company(S) | 11.125 | 02/23/18 | 990,000 | 988,020 |
Realogy Corp.(S) | 7.875 | 02/15/19 | 855,000 | 858,206 |
Health Care 1.03% | 10,641,873 | |||
| ||||
Health Care Equipment & Supplies 0.21% | ||||
Alere, Inc. | 8.625 | 10/01/18 | 750,000 | 795,000 |
Alere, Inc. | 7.875 | 02/01/16 | 1,350,000 | 1,402,313 |
Health Care Providers & Services 0.40% | ||||
BioScrip, Inc. | 10.250 | 10/01/15 | 1,160,000 | 1,223,800 |
Gentiva Health Services, Inc. | 11.500 | 09/01/18 | 280,000 | 315,350 |
Medco Health Solutions, Inc. | 7.125 | 03/15/18 | 2,225,000 | 2,611,445 |
Life Sciences Tools & Services 0.09% | ||||
Bio-Rad Laboratories, Inc. | 4.875 | 12/15/20 | 885,000 | 871,725 |
Pharmaceuticals 0.33% | ||||
Catalent Pharma Solutions, Inc., PIK | 9.500 | 04/15/15 | 1,657,387 | 1,702,965 |
Valeant Pharmaceuticals International, Inc.(S) | 6.875 | 12/01/18 | 1,270,000 | 1,320,800 |
Valeant Pharmaceuticals International, Inc.(S) | 6.750 | 10/01/17 | 385,000 | 398,475 |
Industrials 5.97% | 61,362,740 | |||
| ||||
Aerospace & Defense 0.80% | ||||
BE Aerospace, Inc. | 8.500 | 07/01/18 | 1,200,000 | 1,326,000 |
Bombardier, Inc.(S) | 7.750 | 03/15/20 | 1,015,000 | 1,101,275 |
Colt Defense LLC/Colt Finance Corp.(S) | 8.750 | 11/15/17 | 950,000 | 755,250 |
Embraer Overseas, Ltd. | 6.375 | 01/15/20 | 1,485,000 | 1,566,675 |
Kratos Defense & Security Solutions, Inc. | 10.000 | 06/01/17 | 940,000 | 1,059,850 |
TransDigm, Inc.(S) | 7.750 | 12/15/18 | 2,220,000 | 2,392,050 |
Airlines 2.09% | ||||
America West Airlines | 8.057 | 07/02/20 | 827,278 | 872,779 |
Continental Airlines, Inc. | 8.307 | 04/02/18 | 512,107 | 527,470 |
Continental Airlines, Inc. | 6.648 | 09/15/17 | 668,989 | 709,128 |
Continental Airlines, Inc. | 6.545 | 02/02/19 | 554,311 | 584,798 |
Continental Airlines, Inc. | 5.983 | 04/19/22 | 2,064,290 | 2,152,022 |
Delta Air Lines, Inc.(S) | 9.500 | 09/15/14 | 1,289,000 | 1,405,010 |
Delta Air Lines, Inc. | 6.821 | 08/10/22 | 2,550,916 | 2,691,216 |
Delta Air Lines, Inc. | 6.718 | 01/02/23 | 2,594,961 | 2,659,835 |
Delta Air Lines, Inc. | 6.200 | 07/02/18 | 899,346 | 951,058 |
Northwest Airlines, Inc. | 7.027 | 11/01/19 | 1,579,357 | 1,642,532 |
Northwest Airlines, Inc. | 6.264 | 11/20/21 | 2,231,159 | 2,314,827 |
United Air Lines, Inc. | 10.400 | 11/01/16 | 750,724 | 870,840 |
United Air Lines, Inc.(S) | 9.875 | 08/01/13 | 360,000 | 391,500 |
United Air Lines, Inc. | 9.750 | 01/15/17 | 1,771,875 | 2,042,086 |
US Airways Group, Inc. | 6.250 | 04/22/23 | 1,645,000 | 1,649,113 |
Building Materials 0.37% | ||||
Voto-Votorantim Overseas Trading Operations NV(S) | 6.625 | 09/25/19 | 1,800,000 | 1,876,500 |
Voto-Votorantim, Ltd.(S) | 6.750 | 04/05/21 | 1,840,000 | 1,932,000 |
Building Products 0.13% | ||||
Masco Corp. | 7.125 | 03/15/20 | 1,255,000 | 1,306,179 |
6 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Industrials (continued) | ||||
| ||||
Commercial Services & Supplies 0.51% | ||||
ACCO Brands Corp. | 10.625 | 03/15/15 | $385,000 | $435,050 |
Covanta Holding Corp. | 7.250 | 12/01/20 | 1,815,000 | 1,905,774 |
Garda World Security Corp.(S) | 9.750 | 03/15/17 | 410,000 | 440,750 |
Interactive Data Corp.(S) | 10.250 | 08/01/18 | 485,000 | 543,200 |
Steelcase, Inc. | 6.375 | 02/15/21 | 1,905,000 | 1,944,228 |
Construction & Engineering 0.13% | ||||
Tutor Perini Corp.(S) | 7.625 | 11/01/18 | 1,345,000 | 1,393,756 |
Electrical Equipment 0.08% | ||||
Coleman Cable, Inc. | 9.000 | 02/15/18 | 810,000 | 844,425 |
Industrial Conglomerates 0.50% | ||||
General Electric Company | 5.250 | 12/06/17 | 1,415,000 | 1,550,067 |
Odebrecht Finance, Ltd.(S) | 7.500 | - (Q) | 355,000 | 359,438 |
Odebrecht Finance, Ltd.(S) | 7.000 | 04/21/20 | 1,120,000 | 1,209,600 |
Textron, Inc. | 5.600 | 12/01/17 | 1,945,000 | 2,034,869 |
Machinery 0.26% | ||||
Altra Holdings, Inc. | 8.125 | 12/01/16 | 830,000 | 886,025 |
Terex Corp. | 10.875 | 06/01/16 | 1,050,000 | 1,228,500 |
Trimas Corp. | 9.750 | 12/15/17 | 465,000 | 516,150 |
Marine 0.09% | ||||
Navios Maritime Holdings, Inc./Navios Maritime Finance II | ||||
U.S., Inc.(S) | 8.125 | 02/15/19 | 910,000 | 910,000 |
Road & Rail 0.41% | ||||
Kansas City Southern de Mexico SA de CV | 8.000 | 02/01/18 | 1,315,000 | 1,436,638 |
RailAmerica, Inc. | 9.250 | 07/01/17 | 865,000 | 957,988 |
Western Express, Inc.(S) | 12.500 | 04/15/15 | 1,930,000 | 1,872,100 |
Trading Companies & Distributors 0.41% | ||||
Aircastle, Ltd. | 9.750 | 08/01/18 | 815,000 | 908,725 |
GATX Corp. | 8.750 | 05/15/14 | 2,220,000 | 2,553,195 |
United Rentals North America, Inc. | 10.875 | 06/15/16 | 610,000 | 709,125 |
Transportation Infrastructure 0.19% | ||||
Asciano Finance, Ltd.(S) | 4.625 | 09/23/20 | 2,075,000 | 1,943,144 |
Information Technology 0.65% | 6,689,765 | |||
| ||||
IT Services 0.44% | ||||
Brightstar Corp.(S) | 9.500 | 12/01/16 | 1,890,000 | 2,022,300 |
Equinix, Inc. | 8.125 | 03/01/18 | 765,000 | 830,025 |
Fiserv, Inc. | 6.800 | 11/20/17 | 1,505,000 | 1,681,877 |
Software 0.21% | ||||
Vangent, Inc. | 9.625 | 02/15/15 | 2,275,000 | 2,155,563 |
Materials 4.49% | 46,117,970 | |||
| ||||
Chemicals 0.75% | ||||
American Pacific Corp. | 9.000 | 02/01/15 | 1,000,000 | 982,500 |
Braskem Finance, Ltd.(S) | 7.000 | 05/07/20 | 1,655,000 | 1,708,788 |
Incitec Pivot Finance LLC(S) | 6.000 | 12/10/19 | 1,370,000 | 1,429,799 |
Nalco Company(S) | 6.625 | 01/15/19 | 735,000 | 759,806 |
Solutia, Inc. | 7.875 | 03/15/20 | 1,135,000 | 1,248,500 |
Sterling Chemicals, Inc. | 10.250 | 04/01/15 | 1,490,000 | 1,542,150 |
7 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Materials (continued) | ||||
| ||||
Construction Materials 0.04% | ||||
Severstal Columbus LLC(S) | 10.250 | 02/15/18 | $370,000 | $403,300 |
Containers & Packaging 0.66% | ||||
Ball Corp. | 6.750 | 09/15/20 | 1,380,000 | 1,445,550 |
Graphic Packaging International, Inc. | 9.500 | 06/15/17 | 835,000 | 926,850 |
Graphic Packaging International, Inc. | 7.875 | 10/01/18 | 410,000 | 440,750 |
Polymer Group, Inc.(S) | 7.750 | 02/01/19 | 380,000 | 395,675 |
Solo Cup Company | 10.500 | 11/01/13 | 570,000 | 581,400 |
Temple-Inland, Inc. | 6.875 | 01/15/18 | 2,195,000 | 2,379,288 |
U.S. Corrugated, Inc. | 10.000 | 06/12/13 | 605,000 | 592,900 |
Metals & Mining 2.05% | ||||
Allegheny Technologies, Inc. | 9.375 | 06/01/19 | 1,205,000 | 1,503,730 |
Allegheny Technologies, Inc. | 5.950 | 01/15/21 | 570,000 | 602,615 |
ArcelorMittal | 9.850 | 06/01/19 | 1,470,000 | 1,889,298 |
ArcelorMittal | 6.750 | 03/01/41 | 1,110,000 | 1,100,854 |
Commercial Metals Company | 7.350 | 08/15/18 | 1,395,000 | 1,442,585 |
FMG Resources August 2006 Pty, Ltd.(S) | 7.000 | 11/01/15 | 250,000 | 259,375 |
Gerdau Trade, Inc.(S) | 5.750 | 01/30/21 | 1,345,000 | 1,345,000 |
Metinvest BV(S) | 8.750 | 02/14/18 | 1,755,000 | 1,790,100 |
Rain CII Carbon LLC(S) | 8.000 | 12/01/18 | 2,225,000 | 2,375,188 |
Rio Tinto Alcan, Inc. | 6.125 | 12/15/33 | 1,725,000 | 1,813,163 |
Teck Resources, Ltd. | 10.750 | 05/15/19 | 4,315,000 | 5,559,015 |
Vale Overseas, Ltd. | 6.875 | 11/10/39 | 1,325,000 | 1,429,071 |
Paper & Forest Products 0.99% | ||||
Boise Paper Holdings LLC/Boise Co-Issuer Company | 8.000 | 04/01/20 | 435,000 | 479,588 |
Georgia-Pacific LLC(S) | 7.125 | 01/15/17 | 1,900,000 | 2,018,750 |
Georgia-Pacific LLC(S) | 5.400 | 11/01/20 | 2,395,000 | 2,380,587 |
International Paper Company | 9.375 | 05/15/19 | 1,650,000 | 2,151,308 |
Mercer International, Inc.(S) | 9.500 | 12/01/17 | 425,000 | 459,000 |
PE Paper Escrow GmbH(S) | 12.000 | 08/01/14 | 385,000 | 444,675 |
Verso Paper Holdings LLC/Verso Paper, Inc.(S) | 8.750 | 02/01/19 | 410,000 | 428,450 |
Westvaco Corp. | 7.950 | 02/15/31 | 1,725,000 | 1,808,362 |
Telecommunication Services 2.16% | 22,209,107 | |||
| ||||
Communications Equipment 0.05% | ||||
Telcordia Technologies, Inc.(S) | 11.000 | 05/01/18 | 490,000 | 548,800 |
Diversified Telecommunication Services 1.02% | ||||
Affinion Group Holdings, Inc.(S) | 11.625 | 11/15/15 | 1,005,000 | 1,042,688 |
Axtel SAB de CV(S) | 9.000 | 09/22/19 | 705,000 | 678,563 |
Frontier Communications Corp. | 8.500 | 04/15/20 | 2,390,000 | 2,652,900 |
Intelsat Jackson Holdings SA | 11.500 | 06/15/16 | 1,585,000 | 1,691,988 |
Telecom Italia Capital SA | 6.175 | 06/18/14 | 1,530,000 | 1,628,463 |
West Corp. | 11.000 | 10/15/16 | 2,515,000 | 2,738,206 |
Wireless Telecommunication Services 1.09% | ||||
America Movil SAB de CV | 5.000 | 03/30/20 | 1,780,000 | 1,835,208 |
Bakrie Telecom Pte, Ltd.(S) | 11.500 | 05/07/15 | 1,620,000 | 1,757,700 |
Digicel Group, Ltd.(S) | 8.875 | 01/15/15 | 2,115,000 | 2,199,600 |
NII Capital Corp. | 10.000 | 08/15/16 | 940,000 | 1,064,550 |
NII Capital Corp. | 8.875 | 12/15/19 | 1,655,000 | 1,828,775 |
SBA Telecommunications, Inc. | 8.000 | 08/15/16 | 595,000 | 648,550 |
SBA Tower Trust(S) | 5.101 | 04/15/17 | 1,790,000 | 1,893,116 |
8 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Utilities 3.57% | $36,662,522 | |||
| ||||
Electric Utilities 1.96% | ||||
BVPS II Funding Corp. | 8.890 | 06/01/17 | $1,806,000 | 2,016,704 |
Commonwealth Edison Company | 5.800 | 03/15/18 | 1,955,000 | 2,179,248 |
FirstEnergy Solutions Corp. | 4.800 | 02/15/15 | 1,495,000 | 1,572,688 |
Israel Electric Corp., Ltd.(S) | 7.250 | 01/15/19 | 2,395,000 | 2,543,634 |
ITC Holdings Corp.(S) | 5.500 | 01/15/20 | 1,670,000 | 1,751,296 |
KCP&L Greater Missouri Operations Company | 11.875 | 07/01/12 | 1,865,000 | 2,090,796 |
NV Energy, Inc. | 6.250 | 11/15/20 | 955,000 | 974,935 |
PNPP II Funding Corp. | 9.120 | 05/30/16 | 815,000 | 871,308 |
PPL Capital Funding, Inc. (6.700% to 03/30/2017, then 3 | ||||
month LIBOR + 2.665%) | 6.700 | 03/30/67 | 1,785,000 | 1,753,763 |
Teco Finance, Inc. | 6.572 | 11/01/17 | 1,304,000 | 1,479,337 |
Texas Competitive Electric Holdings Company LLC, Series A | 10.250 | 11/01/15 | 2,335,000 | 1,313,438 |
Waterford 3 Funding Corp. | 8.090 | 01/02/17 | 1,548,591 | 1,560,948 |
Independent Power Producers & Energy Traders 0.58% | ||||
Allegheny Energy Supply Company LLC(S) | 5.750 | 10/15/19 | 1,826,000 | 1,879,840 |
Exelon Generation Company LLC | 6.250 | 10/01/39 | 1,055,000 | 1,054,793 |
NRG Energy, Inc.(S) | 8.250 | 09/01/20 | 1,450,000 | 1,526,125 |
NRG Energy, Inc.(S) | 7.625 | 01/15/18 | 1,490,000 | 1,551,463 |
Multi-Utilities 0.64% | ||||
CMS Energy Corp. | 6.250 | 02/01/20 | 2,700,000 | 2,837,492 |
Integrys Energy Group, Inc. (6.110% to 12/01/2016, then 3 | ||||
month LIBOR + 2.120%) | 6.110 | 12/01/66 | 2,605,000 | 2,533,363 |
Wisconsin Energy Corp. (6.250% to 05/15/2017, then 3 | ||||
month LIBOR + 2.113%) | 6.250 | 05/15/67 | 1,210,000 | 1,208,488 |
Water Utilities 0.39% | ||||
Cia de Saneamento Basico do Estado de Sao Paulo(S) | 6.250 | 12/16/20 | 1,215,000 | 1,218,038 |
Midwest Generation LLC, Series B | 8.560 | 01/02/16 | 1,876,901 | 1,942,593 |
Salton Sea Funding Corp., Series F | 7.475 | 11/30/18 | 756,252 | 802,232 |
U.S. Government & Agency Obligations 23.98% | $246,438,004 | |||
| ||||
(Cost $246,078,266) | ||||
U.S. Government 3.33% | 34,169,884 | |||
| ||||
U.S. Treasury Bonds | 4.250 | 11/15/40 | 25,210,000 | 24,177,953 |
U.S. Treasury Notes | ||||
3.625 | 02/15/21 | 6,505,000 | 6,617,823 | |
2.000 | 01/31/16 | 3,390,000 | 3,374,108 | |
U.S. Government Agency 20.65% | 212,268,120 | |||
| ||||
Federal Home Loan Mortgage Corp. | ||||
30 Yr Pass Thru Ctf | 6.500 | 06/01/37 | 257,657 | 287,110 |
30 Yr Pass Thru Ctf | 6.500 | 10/01/37 | 485,766 | 541,293 |
30 Yr Pass Thru Ctf | 6.500 | 11/01/37 | 923,161 | 1,030,706 |
30 Yr Pass Thru Ctf | 6.500 | 12/01/37 | 445,111 | 495,991 |
30 Yr Pass Thru Ctf | 6.500 | 12/01/37 | 300,373 | 334,708 |
30 Yr Pass Thru Ctf | 6.500 | 02/01/38 | 225,983 | 252,309 |
30 Yr Pass Thru Ctf | 6.500 | 03/01/38 | 907,558 | 1,011,299 |
30 Yr Pass Thru Ctf | 6.500 | 04/01/38 | 650,222 | 724,547 |
30 Yr Pass Thru Ctf | 6.500 | 04/01/39 | 5,697,920 | 6,349,240 |
30 Yr Pass Thru Ctf | 6.500 | 04/01/39 | 6,061,803 | 6,754,718 |
30 Yr Pass Thru Ctf | 6.500 | 09/01/39 | 785,089 | 874,832 |
9 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
U.S. Government Agency (continued) | ||||
| ||||
30 Yr Pass Thru Ctf | 5.000 | 07/01/35 | $1,791,642 | $1,884,993 |
30 Yr Pass Thru Ctf | 4.000 | 09/01/40 | 12,812,930 | 12,630,913 |
Federal National Mortgage Association | ||||
15 Yr Pass Thru Ctf | 4.500 | 07/01/25 | 5,050,000 | 5,293,865 |
15 Yr Pass Thru Ctf | 4.000 | 06/01/24 | 24,230,843 | 24,931,745 |
15 Yr Pass Thru Ctf | 4.000 | 07/01/24 | 12,488,850 | 12,850,102 |
30 Yr Pass Thru Ctf | 6.500 | 09/01/37 | 1,018,605 | 1,135,518 |
30 Yr Pass Thru Ctf | 6.500 | 01/01/39 | 17,588,066 | 19,606,772 |
30 Yr Pass Thru Ctf | 6.500 | 03/01/39 | 813,431 | 910,734 |
30 Yr Pass Thru Ctf | 6.500 | 06/01/39 | 6,094,587 | 6,820,769 |
30 Yr Pass Thru Ctf | 5.500 | 09/01/34 | 8,896,946 | 9,567,772 |
30 Yr Pass Thru Ctf | 5.500 | 05/01/35 | 13,123,977 | 14,113,520 |
30 Yr Pass Thru Ctf | 5.500 | 12/01/36 | 5,701,959 | 6,114,065 |
30 Yr Pass Thru Ctf | 5.000 | 11/01/33 | 2,663,099 | 2,806,849 |
30 Yr Pass Thru Ctf | 5.000 | 09/01/40 | 15,130,159 | 15,852,299 |
30 Yr Pass Thru Ctf | 5.000 | 09/01/40 | 15,501,583 | 16,241,450 |
30 Yr Pass Thru Ctf | 4.000 | 03/01/39 | 18,346,791 | 18,114,829 |
30 Yr Pass Thru Ctf | 4.000 | 09/01/40 | 1,427,661 | 1,409,610 |
30 Yr Pass Thru Ctf | 4.000 | 10/01/40 | 4,496,920 | 4,447,793 |
30 Yr Pass Thru Ctf | 4.000 | 10/01/40 | 6,580,141 | 6,496,947 |
30 Yr Pass Thru Ctf | 4.000 | 10/01/40 | 8,557,929 | 8,457,753 |
30 Yr Pass Thru Ctf | 4.000 | 11/01/40 | 3,970,791 | 3,923,069 |
Foreign Government Obligations 0.55% | $5,683,411 | |||
| ||||
(Cost $5,793,012) | ||||
United Kingdom 0.55% | 5,683,411 | |||
| ||||
Government of United Kingdom(GBP)(D) | 4.750 | 03/07/20 | 3,215,000 | 5,683,411 |
Convertible Bonds 0.33% | $3,402,075 | |||
| ||||
(Cost $2,253,625) | ||||
Consumer Discretionary 0.19% | 1,971,525 | |||
| ||||
Media 0.19% | ||||
XM Satellite Radio, Inc.(S) | 7.000 | 12/01/14 | 1,455,000 | 1,971,525 |
Industrials 0.14% | 1,430,550 | |||
| ||||
Airlines 0.14% | ||||
US Airways Group, Inc. | 7.250 | 05/15/14 | 680,000 | 1,430,550 |
Municipal Bonds 0.10% | $983,201 | |||
| ||||
(Cost $913,588) | ||||
California 0.10% | 983,201 | |||
| ||||
State of California | 7.600 | 11/01/40 | 905,000 | 983,201 |
Term Loans (M) 0.76% | $7,779,231 | |||
| ||||
(Cost $7,779,437) | ||||
Consumer Discretionary 0.67% | 6,897,731 | |||
| ||||
Hotels, Restaurants & Leisure 0.53% | ||||
CCM Merger, Inc. | 7.000 | 02/01/17 | 800,000 | 809,750 |
Dunkin Brands, Inc. | 5.250 | 10/25/17 | 700,000 | 704,808 |
10 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Consumer Discretionary (continued) | ||||
| ||||
East Valley Tourist Development Authority | 12.000 | 08/06/12 | $822,663 | $686,923 |
Kalispel Tribal Economic Authority | 7.500 | 02/22/17 | 2,400,000 | 2,352,000 |
Sugerhouse HSP Gaming | 11.250 | 09/23/14 | 900,000 | 914,250 |
Media 0.14% | ||||
Vertis, Inc. | 11.750 | 12/31/15 | 1,430,000 | 1,430,000 |
Financials 0.09% | 881,500 | |||
| ||||
Real Estate Management & Development 0.09% | ||||
Realogy Corp. | 13.500 | 10/16/17 | 800,000 | 881,500 |
Capital Preferred Securities 1.52% | $15,617,504 | |||
| ||||
(Cost $15,234,290) | ||||
Financials 1.52% | 15,617,504 | |||
| ||||
Capital Markets 0.49% | ||||
State Street Capital Trust III (8.250% to 03/15/2011, then 3 | ||||
month LIBOR + 4.990%) | 8.250 | - (Q) | 2,075,000 | 2,079,420 |
State Street Capital Trust IV(P) | 1.302 | 06/15/37 | 3,680,000 | 2,985,164 |
Commercial Banks 0.94% | ||||
Allfirst Preferred Capital Trust(P) | 1.803 | 07/15/29 | 1,305,000 | 1,005,906 |
Fifth Third Capital Trust IV (6.500% to 04/15/2017 then 3 | ||||
month LIBOR + 1.368%) | 6.500 | 04/15/37 | 3,285,000 | 3,202,875 |
PNC Preferred Funding Trust III (8.700% to 03/15/2013 then | ||||
3 month LIBOR + 5.226%)(S) | 8.700 | - (Q) | 3,330,000 | 3,575,987 |
Sovereign Capital Trust VI | 7.908 | 06/13/36 | 1,840,000 | 1,909,052 |
Insurance 0.09% | ||||
Metlife Capital Trust X (9.250% to 04/08/2038 then 3 month | ||||
LIBOR + 5.540%)(S) | 9.250 | 04/08/38 | 710,000 | 859,100 |
Collateralized Mortgage Obligations 14.14% | $145,389,129 | |||
| ||||
(Cost $142,985,982) | ||||
Commercial & Residential 12.73% | 130,870,481 | |||
| ||||
American Home Mortgage Assets | ||||
Series 2006-6, Class A1A (P) | 0.451 | 12/25/46 | 2,303,105 | 1,291,782 |
Series 2006-6, Class XP IO | 2.372 | 12/25/46 | 26,945,505 | 1,754,724 |
American Tower Trust | ||||
Series 2007-1A, Class C (S) | 5.615 | 04/15/37 | 2,875,000 | 3,050,299 |
Series 2007-1A, Class D (S) | 5.957 | 04/15/37 | 3,175,000 | 3,362,610 |
Banc of America Commercial Mortgage, Inc. | ||||
Series 2006-2, Class AM (P) | 5.776 | 05/10/45 | 2,380,000 | 2,551,925 |
Series 2006-4, Class AM | 5.675 | 07/10/46 | 2,375,000 | 2,493,932 |
Series 2006-3, Class A4 (P) | 5.889 | 07/10/44 | 5,260,000 | 5,748,877 |
Bear Stearns Alt-A Trust | ||||
Series 2005-3, Class B2 (P) | 2.712 | 04/25/35 | 1,141,460 | 66,899 |
Bear Stearns Commercial Mortgage Securities, Inc. | ||||
Series 2006-PW14, Class D (S) | 5.412 | 12/11/38 | 2,480,000 | 919,053 |
Citigroup Commercial Mortgage Trust | ||||
Series 2006-C4, Class A3 (P) | 5.727 | 03/15/49 | 3,350,000 | 3,681,133 |
Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||
Series 2005-CD1, Class C (P) | 5.221 | 07/15/44 | 1,030,000 | 931,469 |
11 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Commercial & Residential (continued) | ||||
| ||||
Commercial Mortgage Pass Through Certificates | ||||
Series 2007-C9, Class A4 (P) | 5.814 | 12/10/49 | $5,295,000 | $5,784,731 |
First Horizon Alternative Mortgage Securities | ||||
Series 2004-AA5, Class B1 (P) | 2.382 | 12/25/34 | 1,168,400 | 111,978 |
Global Tower Partners Acquisition Partners LLC | ||||
Series 2007-1A, Class F (S) | 7.050 | 05/15/37 | 780,000 | 804,089 |
GMAC Mortgage Corp Loan Trust | ||||
Series 2004-AR2, Class 3A (P) | 3.410 | 08/19/34 | 3,770,478 | 3,579,775 |
Greenwich Capital Commercial Funding Corp. | ||||
Series 2006-GG7, Class AM (P) | 5.882 | 07/10/38 | 2,375,000 | 2,505,814 |
Series 2007-GG9, Class C (P) | 5.554 | 03/10/39 | 1,810,000 | 1,333,299 |
Series 2007-GG9, Class A4 | 5.444 | 03/10/39 | 4,670,000 | 4,989,001 |
GSR Mortgage Loan Trust | ||||
Series 2005-AR6, Class 3A1 (P) | 2.762 | 09/25/35 | 3,212,199 | 2,941,417 |
Series 2004-9, Class B1 (P) | 3.571 | 08/25/34 | 1,643,374 | 717,975 |
Series 2006-AR1, Class 3A1 (P) | 5.137 | 01/25/36 | 3,875,878 | 3,482,131 |
Harborview Mortgage Loan Trust | ||||
Series 2005-11, Class X IO | 2.124 | 08/19/45 | 13,123,583 | 602,606 |
Series 2005-8, Class 1X IO | 2.345 | 09/19/35 | 20,788,591 | 1,103,662 |
Series 2007-3, Class ES IO | 0.349 | 05/19/47 | 89,447,931 | 585,884 |
Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 107,225,410 | 580,089 |
Series 2007-6, Class ES IO | 0.342 | 08/19/37 | 74,266,208 | 467,877 |
IndyMac Index Mortgage Loan Trust | ||||
Series 2004-AR13, Class B1 | 5.296 | 01/25/35 | 1,120,391 | 134,590 |
Series 2005-AR18, Class 1X IO | 2.217 | 10/25/36 | 34,114,867 | 1,535,169 |
Series 2005-AR18, Class 2X IO | 1.917 | 10/25/36 | 56,083,275 | 2,523,747 |
Series 2005-AR5, Class B1 (P) | 2.773 | 05/25/35 | 1,580,020 | 33,416 |
JPMorgan Chase Commercial Mortgage Securities Corp. | ||||
Series 2006-LDP7, Class AM (P) | 5.875 | 04/15/45 | 3,345,000 | 3,561,111 |
Series 2007-CB18, Class A4 | 5.440 | 06/12/47 | 4,610,000 | 4,898,960 |
Series 2005-LDP3, Class A4B (P) | 4.996 | 08/15/42 | 3,635,000 | 3,799,846 |
Series 2005-LDP4, Class B (P) | 5.129 | 10/15/42 | 1,646,000 | 1,515,541 |
JPMorgan Mortgage Trust | ||||
Series 2006-A7, Class 2A5 (P) | 5.738 | 01/25/37 | 2,303,910 | 201,053 |
LB-UBS Commercial Mortgage Trust | ||||
Series 2006-C6, Class AM | 5.413 | 09/15/39 | 4,300,000 | 4,501,687 |
Series 2006-C4, Class A4 (P) | 5.883 | 06/15/38 | 3,950,000 | 4,351,595 |
Series 2007-C2, Class A3 | 5.430 | 02/15/40 | 4,910,000 | 5,239,948 |
Merrill Lynch/Countrywide Commercial Mortgage Trust | ||||
Series 2006-2, Class A4 (P) | 5.904 | 06/12/46 | 4,535,000 | 5,005,834 |
MLCC Mortgage Investors, Inc. | ||||
Series 2006-3, Class 2A1 (P) | 6.000 | 10/25/36 | 3,518,151 | 3,289,028 |
Series 2007-3, Class M1 (P) | 5.511 | 09/25/37 | 1,231,227 | 705,866 |
Series 2007-3, Class M2 (P) | 5.511 | 09/25/37 | 460,238 | 228,991 |
Series 2007-3, Class M3 (P) | 5.511 | 09/25/37 | 326,496 | 146,046 |
Morgan Stanley Capital I | ||||
Series 2007-IQ13, Class A4 | 5.364 | 03/15/44 | 4,605,000 | 4,806,777 |
Series 2008-HQ8, Class AM (P) | 5.436 | 03/12/44 | 4,130,000 | 4,397,463 |
Provident Funding Mortgage Loan Trust | ||||
Series 2005-1, Class B1 (P) | 2.850 | 05/25/35 | 1,517,709 | 352,137 |
Residential Accredit Loans, Inc. | ||||
Series 2005-QO4, Class X IO | 2.394 | 12/25/45 | 34,961,352 | 1,785,892 |
Structured Asset Securities Corp. | ||||
Series 2003-6A, Class B1 (P) | 2.927 | 03/25/33 | 1,968,813 | 1,396,095 |
12 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Commercial & Residential (continued) | ||||
| ||||
Thornburg Mortgage Securities Trust | ||||
Series 2004-1, Class II2A (P) | 1.946 | 03/25/44 | $3,578,182 | $3,352,166 |
WaMu Mortgage Pass Through Certificates | ||||
Series 2005-AR1, Class X IO | 1.582 | 01/25/45 | 45,945,853 | 2,058,471 |
Series 2005-AR12, Class 1A2 (P) | 2.722 | 10/25/35 | 1,260,960 | 1,234,312 |
Series 2005-AR13, Class X IO | 1.561 | 10/25/45 | 123,078,432 | 6,124,383 |
Series 2005-AR19, Class B1 (P) | 0.961 | 12/25/45 | 2,275,743 | 295,355 |
Series 2005-AR8, Class X IO | 1.710 | 07/25/45 | 32,735,622 | 1,678,768 |
Series 2006-AR4, Class 1A1B (P) | 1.263 | 05/25/46 | 2,253,078 | 1,382,730 |
Series 2005-AR13, Class B1 (P) | 0.861 | 10/25/45 | 3,900,617 | 686,431 |
Series 2005-AR6, Class B1 (P) | 0.861 | 04/25/45 | 4,361,765 | 729,453 |
Wells Fargo Mortgage Backed Securities Trust | ||||
Series 2005-AR5, Class 1A1 (P) | 5.089 | 04/25/35 | 2,697,745 | 2,588,761 |
Series 2006-AR15, Class A3 (P) | 5.426 | 10/25/36 | 2,829,109 | 885,828 |
U.S. Government Agency 1.41% | 14,518,648 | |||
| ||||
Federal Home Loan Mortgage Corp. | ||||
Series 3581, Class IO | 6.000 | 10/15/39 | 3,002,458 | 571,346 |
Series 3623, Class LI IO | 4.500 | 01/15/25 | 2,949,270 | 327,570 |
Series 3630, Class BI IO | 4.000 | 05/15/27 | 1,898,693 | 212,572 |
Series 3794, Class PI IO | 4.500 | 02/15/38 | 4,027,140 | 732,596 |
Federal National Mortgage Association | ||||
Series 2009-109, Class IW IO | 4.500 | 04/25/38 | 4,442,519 | 756,642 |
Series 2009-47, Class EI IO | 5.000 | 08/25/19 | 4,078,992 | 437,222 |
Series 2009-50, Class GI IO | 5.000 | 05/25/39 | 7,445,148 | 1,185,141 |
Series 2009-78, Class IB IO | 5.000 | 06/25/39 | 10,601,934 | 1,571,982 |
Series 2010-14, Class AI IO | 4.000 | 08/25/27 | 5,627,939 | 625,311 |
Series 2010-36, Class BI IO | 4.000 | 03/25/28 | 5,729,273 | 665,064 |
Series 398, Class C3 IO | 4.500 | 05/25/39 | 5,992,771 | 1,366,257 |
Series 401, Class C2 IO | 4.500 | 06/25/39 | 3,969,354 | 810,890 |
Series 402, Class 3 IO | 4.000 | 11/25/39 | 4,494,196 | 1,000,205 |
Series 402, Class 4 IO | 4.000 | 10/25/39 | 7,916,325 | 1,684,081 |
Series 402, Class 7 IO | 4.500 | 11/25/39 | 7,261,785 | 1,625,457 |
Government National Mortgage Association | ||||
Series 2010-78, Class AI IO | 4.500 | 04/20/39 | 7,046,079 | 946,312 |
Asset Backed Securities 4.05% | $41,595,389 | |||
| ||||
(Cost $40,233,752) | ||||
Aegis Asset Backed Securities Trust | ||||
Series 2004-3, Class A1 (P) | 0.621 | 09/25/34 | 1,597,882 | 1,424,338 |
Asset Backed Funding Certificates | ||||
Series 2005-HE1, Class M1 (P) | 0.681 | 03/25/35 | 1,652,918 | 1,452,958 |
Bayview Financial Acquisition Trust | ||||
Series 2006-A, Class 2A3 (P) | 0.611 | 02/28/41 | 1,871,905 | 1,611,409 |
Bravo Mortgage Asset Trust | ||||
Series 2006-1A, Class A2 (P) (S) | 0.501 | 07/25/36 | 2,632,435 | 2,280,656 |
Carrington Mortgage Loan Trust | ||||
Series 2006-NC4, Class A5 (P) | 0.321 | 10/25/36 | 723,819 | 589,631 |
ContiMortgage Home Equity Loan Trust | ||||
Series 1995-2, Class A-5 | 8.100 | 08/15/25 | 175,193 | 173,556 |
Countrywide Asset-Backed Certificates | ||||
Series 2006-3, Class 2A2 (P) | 0.441 | 06/25/36 | 3,054,803 | 2,676,924 |
13 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Maturity | Par value | |||
Rate (%) | date | Value | ||
Asset Backed Securities (continued) | ||||
| ||||
Credit-Based Asset Servicing and Securitization LLC | ||||
Series 2005-CB2, Class M1 (P) | 0.701 | 04/25/36 | $3,073,905 | $2,851,726 |
Dominos Pizza Master Issuer LLC | ||||
Series 2007-1, Class M1 (S) | 7.629 | 04/25/37 | 3,715,000 | 3,831,094 |
Series 2007-1, Class A2 (S) | 5.261 | 04/25/37 | 3,180,000 | 3,275,400 |
Hertz Vehicle Financing LLC | ||||
Series 2009-2A, Class A2 (S) | 5.290 | 03/25/16 | 3,090,000 | 3,391,399 |
Leaf II Receivables Funding LLC | ||||
Series 2011-1, Class A (S) | 1.700 | 12/20/18 | 2,314,472 | 2,253,100 |
Merrill Lynch Mortgage Investors, Inc. | ||||
Series 2005-HE2, Class A2C (P) | 0.631 | 09/25/36 | 2,615,000 | 2,374,449 |
New Century Home Equity Loan Trust | ||||
Series 2005-1, Class M1 (P) | 0.711 | 03/25/35 | 1,495,000 | 1,174,521 |
Novastar Home Equity Loan | ||||
Series 2004-4, Class M3 (P) | 1.341 | 03/25/35 | 2,720,000 | 2,514,888 |
Park Place Securities, Inc. | ||||
Series 2004-WHQ2, Class M2 (P) | 0.891 | 02/25/35 | 2,430,000 | 2,219,919 |
Series 2005-WCH1, Class M2 (P) | 0.781 | 01/25/36 | 3,450,000 | 3,198,747 |
Renaissance Home Equity Loan Trust | ||||
Series 2005-2, Class AF3 | 4.499 | 08/25/35 | 399,873 | 398,871 |
Series 2005-2, Class AF4 | 4.934 | 08/25/35 | 2,365,000 | 2,017,603 |
Residential Asset Securities Corp. | ||||
Series 2005-KS4, Class M1 (P) | 0.671 | 05/25/35 | 2,010,000 | 1,884,200 |
Shares | Value | |||
Preferred Securities 0.84% | $8,679,399 | |||
| ||||
(Cost $8,299,870) | ||||
Consumer Discretionary 0.16% | 1,707,610 | |||
| ||||
Hotels, Restaurants & Leisure 0.18% | ||||
Greektown Superholdings, Inc., Series A (I) | 17,280 | 1,707,610 | ||
Consumer Staples 0.18% | 1,870,172 | |||
| ||||
Food & Staples Retailing 0.18% | ||||
Ocean Spray Cranberries, Inc., Series A, 6.250% (S) | 23,250 | 1,870,172 | ||
Energy 0.13% | 1,295,711 | |||
| ||||
Oil, Gas & Consumable Fuels 0.13% | ||||
Apache Corp., Series D, 6.000% (L) | 19,021 | 1,295,711 | ||
Financials 0.27% | 2,761,442 | |||
| ||||
Diversified Financial Services 0.27% | ||||
Bank of America Corp., Series MER, 8.625% | 89,220 | 2,328,642 | ||
Citigroup Capital XIII (7.875% to 10/30/2015, then 3 month LIBOR + | ||||
6.370%) | 16,000 | 432,800 | ||
Telecommunication Services 0.10% | 1,044,464 | |||
| ||||
Wireless Telecommunication Services 0.10% | ||||
Telephone & Data Systems, Inc., Series A, 7.600% | 41,218 | 1,044,464 |
14 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
Shares | Value | |||
Common Stocks 0.01% | $87,456 | |||
| ||||
(Cost $97,862) | ||||
Consumer Discretionary 0.01% | 87,456 | |||
| ||||
Greektown Superholdings, Inc. (I) | 885 | 87,456 | ||
Yield | Shares | Value | ||
Securities Lending Collateral 0.12% | $1,241,649 | |||
| ||||
(Cost $1,241,828) | ||||
John Hancock Collateral Investment Trust (W) | 0.2855% (Y) | 124,073 | 1,241,649 | |
Maturity | Par value | |||
Yield* | date | Value | ||
Short-Term Investments 0.94% | $9,700,000 | |||
| ||||
(Cost $9,700,000) | ||||
Short-Term Securities 0.94% | 9,700,000 | |||
| ||||
Federal Home Loan Bank Discount Notes | 0.070% | 03/01/11 | $9,700,000 | 9,700,000 |
Total investments (Cost $983,268,269) 99.24% | $1,020,033,683 | |||
| ||||
Other assets and liabilities, net 0.76% | $7,789,491 | |||
| ||||
Total net assets 100.00% | $1,027,823,174 | |||
|
The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable of the Fund. All par values are denominated in U.S. Dollars unless otherwise indicated.
ADR American Depositary Receipts
BRL Brazilian Real
CAD Canadian Dollar
IO Interest Only Security - Interest Tranche of Stripped Mortgage Pool
LIBOR London Interbank Offered Rate
PIK Payment-in-kind
(D) Par value of foreign bonds is expressed in local currency as shown parenthetically in security description.
(H) Non-income producing - Issuer is in default.
(I) Non-income producing security.
(L) All or a portion of this security is on loan as of February 28, 2011.
(P) Variable rate obligation. The coupon rate shown represents the rate at period end.
(Q) Perpetual bonds have no stated maturity date.
(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 $209,816,326 or 20.41% of the Fund's net assets as of February 28, 2011.
(W) Investment is an affiliate of the Fund, the adviser and/or subadviser. Also, it represents the investment of securities lending collateral received.
(Y) The rate shown is the annualized seven-day yield as of February 28, 2011.
* Yield represents the annualized yeild at the date of purchase.
15 |
John Hancock Bond Fund
As of February 28, 2011 (Unaudited)
At February 28, 2011, the aggregate cost of investment securities for federal income tax purposes was $984,455,534. Net unrealized appreciation aggregated $35,578,149, of which $66,782,337 related to appreciated investment securities and $31,204,188 related to depreciated investment securities.
16 |
Note to the Schedule of Investments (Unaudited)
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 securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Funds own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the values by input classification of the Funds investments as of February 28, 2011, by major security category or type:
Level 2 | Level 3 | |||
Significant | Significant | |||
Total Market | Level 1 Quoted | Observable | Unobservable | |
Value at 2-28-11 | Price | Inputs | Inputs | |
| ||||
Corporate Bonds | $533,437,235 | - | $531,746,307 | $1,690,928 |
U.S. Government & Agency | ||||
Obligations | 246,438,004 | - | 246,438,004 | - |
Foreign Government Obligations | 5,683,411 | - | 5,683,411 | - |
Convertible Bonds | 3,402,075 | - | 3,402,075 | - |
Municipal Bonds | 983,201 | - | 983,201 | - |
Term Loans | 7,779,231 | - | 7,779,231 | - |
Capital Preferred Securities | 15,617,504 | - | 15,617,504 | - |
Collateralized Mortgage Obligations | 145,389,129 | - | 140,744,329 | 4,644,800 |
Asset Backed Securities | 41,595,389 | - | 41,595,389 | - |
Preferred Securities | 8,679,399 | $5,101,617 | 1,870,172 | 1,707,610 |
Common Stocks | 87,456 | - | - | 87,456 |
Securities Lending Collateral | 1,241,649 | 1,241,649 | - | - |
Short-Term Investments | 9,700,000 | - | 9,700,000 | - |
| ||||
Total investments in Securities | $1,020,033,683 | $6,343,266 | $1,005,559,623 | $8,130,794 |
Futures | $4,224 | $4,224 | - | - |
Forwards | ($137,081) | - | ($137,081) | - |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the nine months ended February 28, 2011, there were no significant transfers in or out of Level 1 or Level 2 assets.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. Transfers in or out of Level 3 represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.
17 |
Collateral | |||||
Corporate | Mortgage | Preferred | Common | ||
Bonds | Obligations | Securities | Stocks | Total | |
| |||||
Balance as of 5-31-10 | $514,250 | $6,213,054 | - | - | $6,727,304 |
Accrued discounts/premiums | 1,107 | - | - | - | 1,107 |
Realized gain (loss) | 1,573 | - | - | - | 1,573 |
Change in unrealized appreciation (depreciation) | (64,529) | 714,953 | ($46,509) | ($10,406) | 593,509 |
Net purchases (sales) | 588,927 | (1,386,584) | 1,754,119 | 97,862 | 1,054,324 |
Net transfers in and/or out of Level 3 | 649,600 | (896,623) | - | - | (247,023) |
| |||||
Balance as of 2-28-11 | $1,690,928 | $4,644,800 | $1,707,610 | $87,456 | $8,130,794 |
Change in unrealized at period end* | ($64,529) | $714,953 | ($46,509) | ($10,406) | $593,509 |
*Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end.
In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, taking 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. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain securities and forward foreign currency contracts 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. Certain short-term securities are valued at amortized cost. Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Funds Pricing Committee, following procedures established by the Board of Trustees.
Term loans (Floating rate loans). The Fund may invest in term loans, which often include debt securities that are rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual restrictions on resale. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During periods of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.
A Funds ability to receive payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. A Funds failure to receive scheduled payments on a term loan due to a default, bankruptcy or other reason, would adversely affect the Funds income and would likely reduce the value of its assets. Because many term loans are not rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively on the subadvisers credit analysis of the borrower and/or term loan agents. A Fund may have limited rights to enforce the terms of an underlying loan.
Stripped securities. Stripped mortgage backed securities are financial instruments structured to separate principal and interest cash flows so that one class receives the entire principal from the underlying mortgage assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped mortgage backed security. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully receive its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates. In addition, these securities present additional credit risk
18 |
such that the Fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.
Futures. A futures contract is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets, contract prices that can be highly volatile and imperfectly correlated to movements in hedged security values and/or interest rates and potential losses in excess of the Funds initial investment. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.
During the nine months ended February 28, 2011, the Fund used futures contracts to manage the duration of the portfolio. The following table summarizes the contracts held at February 28, 2011. During the nine months ended February 28, 2011, the Fund held futures contracts with notional absolute values ranging from $21.9 million to $23.1 million, as measured at each quarter end.
UNREALIZED | |||||
NUMBER OF | EXPIRATION | NOTIONAL | APPRECIATION | ||
OPEN CONTRACTS | CONTRACTS | POSITION | DATE | VALUE | (DEPRECIATION) |
| |||||
U.S. Treasury 30-Year Bond | |||||
Futures | 50 | Long | Jun 2011 | $6,017,188 | $54,546 |
U.S. Treasury 5-Year Note | |||||
Futures | 136 | Short | Jun 2011 | (15,903,500) | (50,322) |
| |||||
Total | $4,224 |
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement the risk that currency movements will not occur thereby reducing the Funds total return, and the potential for losses in excess of the funds unrealized appreciation (depreciation) at February 28, 2011.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.
During the nine months ended February 28, 2011, the Fund used forward foreign currency contracts to manage against anticipated currency exchange rates. The following table summarizes the contracts held at February 28, 2011. During the nine months ended February 28, 2011, the Fund held forward foreign currency contracts with USD notional absolute values ranging from $0 to $5.8 million, as measured at each quarter end.
PRINCIPAL | |||||
PRINCIPAL | AMOUNT | ||||
AMOUNT | COVERED | ||||
COVERED | BY | ||||
BY | CONTRACT | SETTLEMENT | UNREALIZED | ||
CURRENCY | CONTRACT | (USD) | COUNTERPARTY | DATE | DEPRECATION |
| |||||
SELLS | |||||
| |||||
GBP | 3,678,834 | $5,841,989 | Royal Bank of Scotland PLC | 3-31-11 | ($137,081) |
Currency abbreviation
GBP Pound Sterling
19 |
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the Fund at February 28, 2011 by risk category:
ASSET | LIABILITY | ||
FINANCIAL INSTRUMENTS | DERIVATIVES | DERIVATIVES | |
RISK | LOCATION | FAIR VALUE | FAIR VALUE |
| |||
Interest rate contracts | Futures | $54,546 | ($50,322) |
Foreign exchange contracts | Forward foreign currency contracts | - | (137,081) |
| |||
Total | $54,546 | ($187,403) |
For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.
20 |
ITEM 2. 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-Q, the registrant's principal executive officer and principal accounting 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 last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
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 Sovereign Bond Fund
By: /s/ Keith F. Hartstein
Keith F. Hartstein
President and Chief Executive Officer
Date: April 19, 2011
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/ Keith F. Hartstein
Keith F. Hartstein
President and Chief Executive Officer
Date: April 19, 2011
By: /s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
Date: April 19, 2011
CERTIFICATION
I, Keith F. Hartstein, certify that:
1. I have reviewed this report on Form N-Q of John Hancock Sovereign Bond Fund (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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: April 19, 2011 | /s/ Keith F. Hartstein |
Keith F. Hartstein | |
President and Chief Executive Officer |
CERTIFICATION
I, Charles A. Rizzo, certify that:
1. I have reviewed this report on Form N-Q of John Hancock Sovereign Bond Fund (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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: April 19, 2011 | /s/ Charles A. Rizzo |
Charles A. Rizzo | |
Chief Financial Officer |
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