John
Hancock
Bond
Fund
| SUMMARY PROSPECTUS 10–1–12 |
|
|
| Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund, including the statement of additional information and most recent reports, online at www.jhfunds.com/Forms/Prospectuses.aspx. You can also get this information at no cost by calling 1-888-972-8696 or by sending an e-mail request to info@jhfunds.com. The fund’s prospectus and statement of additional information, both dated 10-1-12, and most recent financial highlights information included in the shareholder report, dated 5-31-12, are incorporated by reference into this Summary Prospectus. |
Class
R2: JHRBX
Investment
objective
To seek a high level of current income consistent with prudent
investment risk.
Fees
and expenses
This table describes the fees and expenses you may pay if you
buy and hold shares of the fund.
| Shareholder fees (%) (fees paid directly from your investment) | Class R2 | |||||
| Maximum front-end sales charge (load) on purchases as a % of purchase price | None | |||||
| Maximum deferred sales charge (load) as a % of purchase or sale price, whichever is less | None | |||||
|
Annual fund operating
expenses (%) |
||||||||||
| (expenses that you pay each year as a percentage of the value of your investment) | Class R2 | |||||||||
| Management fee | 0.48 | |||||||||
| Distribution and service (12b-1) fees | 0.25 | |||||||||
| Other expenses1 | 0.36 | |||||||||
|
Service plan fee
|
0.25 | |||||||||
|
Additional expenses
|
0.11 | |||||||||
| Total annual fund operating expenses | 1.09 | |||||||||
| Contractual expense reimbursement2 | −0.05 | |||||||||
| Total annual fund operating expenses after expense reimbursements | 1.04 | |||||||||
|
1
|
“Other expenses” have been estimated for the first year of operations of the fund’s Class R2 shares. | |
|
2
|
The adviser has contractually agreed to waive a portion of its management fee and/or reimburse or pay operating expenses of the fund in order to reduce the total annual fund operating expenses for Class R2 shares by 0.05% of the fund’s average daily net assets. These fee waivers and/or reimbursements expire on September 30, 2013, unless renewed by mutual agreement of the fund and the adviser based upon a determination that this is appropriate under the circumstances at that time. |
Expense
example
This example is intended to help you compare the cost of
investing in the fund with the cost of investing in other mutual
funds. Please see below a hypothetical example showing the
expenses of a $10,000 investment at the end of the various time
frames indicated. The example assumes a 5% average annual
return. The example assumes fund expenses will not change over
the periods. Although your actual costs may be higher or lower,
based on these assumptions, your costs would be:
| Expenses ($) | Class R2 | |||||
| 1 Year | 106 | |||||
| 3 Years | 342 | |||||
Portfolio
turnover
The fund pays transaction costs, such as commissions, when it
buys and sells securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not
An
Income Fund
John
Hancock
Bond Fund
reflected in annual fund operating expenses or in the example,
affect the fund’s performance. During its most recent
fiscal year, the fund’s portfolio turnover rate was 76% of
the average value of its portfolio.
Principal
investment strategies
Under normal market conditions, the fund invests at least 80% of
its net assets (plus any borrowings for investment purposes) in
a diversified portfolio of bonds. These may include, but are not
limited to, corporate bonds and debentures, as well as
U.S. government and agency securities. Most of these
securities are investment grade, although the fund may invest up
to 25% of assets in high-yield bonds rated as low as CC by
Standard & Poor’s Corporation (S&P) and Ca
by Moody’s Investors Service, Inc. (Moody’s) and their
unrated equivalents. There is no limit on the fund’s
average maturity.
In managing the fund’s portfolio, the subadviser
concentrates on sector allocation, industry allocation and
security selection: deciding which types of bonds and industries
to emphasize at a given time, and then which individual bonds to
buy. When making sector and industry allocations, the subadviser
tries to anticipate shifts in the business cycle, using top-down
analysis to determine which sectors and industries may benefit
over the next 12 months.
In choosing individual securities, the subadviser uses
bottom-up
research to find securities that appear comparatively
undervalued. The subadviser looks at bonds of all quality levels
and maturities from many different issuers, potentially
including foreign governments and corporations denominated in
U.S. dollars or foreign currencies. The fund will not
invest more than 10% of its total assets in securities
denominated in foreign currencies.
The fund intends to keep its exposure to interest-rate movements
generally in line with those of its peers. The fund may invest
in mortgage-related securities and derivatives, which include
futures contracts on securities and indexes; options on futures
contracts, securities and indexes; interest rate, foreign
currency and credit default swaps; and foreign currency forward
contracts, in each case, for the purposes of reducing risk,
obtaining efficient market exposure
and/or
enhancing investment returns. The fund’s investments in
U.S. government and agency securities may or may not be
supported by the full faith and credit of the United States.
Under normal circumstances, the fund may not invest more than
10% of its assets in cash or cash equivalents.
Principal
risks
An investment in the fund is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The fund’s
shares will go up and down in price, meaning that you could lose
money by investing in the fund. Many factors influence a mutual
fund’s performance.
Instability in the financial markets has led many governments,
including the United States government, to take a number of
unprecedented actions designed to support certain financial
institutions and segments of the financial markets that have
experienced extreme volatility and, in some cases, a lack of
liquidity. Federal, state and other governments, and their
regulatory agencies or self-regulatory organizations, may take
actions that affect the regulation of the instruments in which
the fund invests, or the issuers of such instruments, in ways
that are unforeseeable. Legislation or regulation may also
change the way in which the fund itself is regulated. Such
legislation or regulation could limit or preclude the
fund’s ability to achieve its investment objective.
Governments or their agencies may also acquire distressed assets
from financial institutions and acquire ownership interests in
those institutions. The implications of government ownership and
disposition of these assets are unclear, and such a program may
have positive or negative effects on the liquidity, valuation
and performance of the fund’s portfolio holdings.
Furthermore, volatile financial markets can expose the fund to
greater market and liquidity risk and potential difficulty in
valuing portfolio instruments held by the fund.
The fund’s main risk factors are listed below in
alphabetical order. Before investing, be sure to read the
additional descriptions of these risks beginning on page 6
of the prospectus.
Active management risk The subadviser’s investment
strategy may fail to produce the intended result.
Changing distribution levels risk The distribution
amounts paid by the fund generally depend on the amount of
income
and/or
dividends paid by the fund’s investments.
Credit and counterparty risk The issuer or guarantor of a
fixed-income security, the counterparty to an over-the-counter
derivatives contract or a borrower of a fund’s securities
may be unable or unwilling to make timely principal, interest or
settlement payments, or otherwise honor its obligations.
U.S. government securities are subject to varying degrees
of credit risk depending upon the nature of their support. Funds
that invest in fixed-income securities are subject to varying
degrees of risk that the issuers of the securities will have
their credit rating downgraded or will default, potentially
reducing a fund’s share price and income level.
Fixed-income securities risk Fixed-income securities are
affected by changes in interest rates and credit quality. A rise
in interest rates typically causes bond prices to fall. The
longer the average maturity of the bonds held by the fund, the
more sensitive the fund is likely to be to interest-rate
changes. There is the possibility that the issuer of the
security will not repay all or a portion of the principal
borrowed and will not make all interest payments.
Foreign securities risk As compared to
U.S. companies, there may be less publicly available
information relating to foreign companies. Foreign securities
may be subject to foreign taxes. The value of foreign securities
is subject to currency fluctuations and adverse political and
economic developments.
Hedging, derivatives and other strategic transactions risk
Hedging and other strategic transactions may increase the
volatility of a fund and, if the transaction is not successful,
could result in a significant loss to a fund. The use of
derivative instruments could produce disproportionate gains or
losses, more than the principal amount invested. Investing in
derivative instruments involves risks different from, or
possibly greater than, the risks associated with investing
directly in securities and other traditional investments and, in
a down market, could become harder to value or sell at a fair
price. The following is a list of certain derivatives and other
strategic transactions in which the fund intends to invest and
the main risks associated with each of them:
Credit default swaps Counterparty risk, liquidity risk
(i.e., the inability to enter into closing transactions),
interest-rate risk, risk of default of the underlying reference
obligation and risk of disproportionate loss are the principal
risks of engaging in transactions involving credit default swaps.
Foreign currency forward contracts Counterparty risk,
liquidity risk (i.e., the inability to enter into closing
transactions), foreign currency risk and risk of
disproportionate loss are the principal risks of engaging in
transactions involving foreign currency forward contracts.
Foreign currency swaps Counterparty risk, liquidity risk
(i.e., the inability to enter into closing transactions),
foreign currency risk and risk of disproportionate loss are the
principal risks of engaging in transactions involving foreign
currency swaps.
Futures contracts Counterparty risk, liquidity risk
(i.e., the inability to enter into closing transactions) and
risk of disproportionate loss are the principal risks of
engaging in transactions involving futures contracts.
Interest-rate swaps Counterparty risk, liquidity risk
(i.e., the inability to enter into closing transactions),
interest-rate risk and risk of disproportionate loss are the
principal risks of engaging in transactions involving
interest-rate swaps.
Options Counterparty risk, liquidity risk (i.e., the
inability to enter into closing transactions) and risk of
disproportionate loss are the principal risks of engaging in
transactions involving options. Counterparty risk does not apply
to exchange-traded options.
Lower-rated fixed-income securities risk and high-yield
securities risk Lower-rated fixed-income securities and
high-yield fixed-income securities (commonly known as “junk
bonds”) are subject to greater credit quality risk and risk
of default than higher-rated fixed-income securities. These
securities may be considered speculative and the value of these
securities can be more volatile due to increased sensitivity to
adverse issuer, political, regulatory, market or economic
developments and can be difficult to resell.
Mortgage-backed and asset-backed securities risk
Different types of mortgage-backed securities and
asset-backed securities are subject to different combinations of
prepayment, extension, interest-rate
and/or other
market risks.
Sector investing risk Because the fund may focus on a
single sector of the economy, its performance depends in large
part on the performance of that sector. As a result, the value
of your investment may fluctuate more widely than it would in a
fund that is diversified across sectors.
Past
performance
The following performance information in the bar chart and table
below illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund
by showing changes in the fund’s performance from year to
year. However, past performance (before and after taxes) does
not indicate future results. All figures assume dividend
reinvestment. Performance for the fund is updated daily, monthly
and quarterly and may be obtained at our Web site:
www.jhfunds.com/RetirementPerformance, or by calling
1-888-972-8696 between 8:30
a.m. and 5:00
p.m., Eastern
Time, on most business days.
Average annual total returns Performance of a broad-based
market index is included for comparison.
After-tax returns They reflect the highest individual
federal marginal income tax rates in effect as of the date
provided and do not reflect any state or local taxes. Your
actual after-tax returns may be different. After-tax
returns are not relevant to shares held in an IRA, 401(k) or
other tax-advantaged investment plan.
Class R2 shares of the fund commenced operations on
March 1, 2012. Because Class R2 shares of the fund do
not have a full calendar year of performance, the returns are
those of Class A shares that have been recalculated to
apply the estimated gross fees and expenses of Class R2
shares.
| Calendar year total returns — Class R2 (%) |
Year-to-date total return The fund’s total return
for the six months ended June 30, 2012 was 5.62%.
Best quarter: Q3 ’09, 11.00%
Worst quarter: Q4 ’08, -7.30%
John
Hancock
Bond Fund
| Average annual total returns (%) | 1 Year | 5 Year | 10 Year | |||||||||||
| as of 12-31-11 | ||||||||||||||
| Class R2 before tax | 4.81 | 6.99 | 6.11 | |||||||||||
|
After tax on distributions
|
2.90 | 4.78 | 4.07 | |||||||||||
|
After tax on distributions, with sale
|
3.13 | 4.65 | 4.01 | |||||||||||
| Barclays Capital Government/Credit Bond Index | 8.74 | 6.55 | 5.85 | |||||||||||
Investment
management
Investment adviser John Hancock Advisers, LLC
Subadviser John Hancock Asset Management a division of
Manulife Asset Management (US) LLC
Portfolio
management
|
Barry H. Evans, CFA
President and chief fixed-income officer Joined fund team in 2002 |
Jeffrey N. Given, CFA
Vice president and portfolio manager Joined fund team in 2006 |
Howard C. Greene, CFA
Senior vice president and senior portfolio manager Joined fund team in 2002 |
Purchase
and sale of fund shares
There are no minimum initial or subsequent investment
requirements for Class R2 shares of the fund. You may
redeem shares of the fund on any business day by contacting your
retirement plan administrator or recordkeeper.
Taxes
The fund’s distributions are taxable, and will be taxed as
ordinary income
and/or
capital gains, unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or individual retirement
account. Withdrawals from such tax-deferred arrangements may be
subject to tax at a later date.
Payments
to broker-dealers and other financial intermediaries
If you purchase the fund through a broker-dealer or other
financial intermediary (such as a bank, registered investment
adviser, financial planner or retirement plan administrator),
the fund and its related companies may pay the intermediary for
the sale of fund shares and related services. These payments may
create a conflict of interest by influencing the broker-dealer
or other intermediary and your salesperson to recommend the fund
over another investment. Ask your salesperson or visit your
financial intermediary’s Web site for more information.
©
2012 John Hancock Funds, LLC 21R2SP
10-1-12 SEC
file number:
811-00560