Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Sovereign Bond Fund and Shareholders of John Hancock Bond Fund
In planning and performing our audit of the financial statements of John Hancock Bond Fund (the “Fund”) as of and for the year ended May 31, 2018, in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered the Fund’s internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Fund’s internal control over financial reporting.
The management of the Fund is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A fund’s internal control over financial reporting is a process designed 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. A fund's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the fund are being made only in accordance with authorizations of management and trustees of the fund; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a fund’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Fund’s annual or interim financial statements will not be prevented or detected on a timely basis.
Our consideration of the Fund’s internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control over financial reporting that might be material weaknesses under standards established by the Public Company Accounting Oversight Board (United States). However, we noted no deficiencies in the Fund’s internal control over financial reporting and their operation, including controls over safeguarding securities that we consider to be material weaknesses as defined above as of May 31, 2018.
PricewaterhouseCoopers LLP, 101 Seaport Boulevard, Suite 500, Boston, MA 02210 |
T: (617) 530 5000, F:(617) 530 5001, www.pwc.com/us |
This report is intended solely for the information and use of management and the Board of Trustees of John Hancock Sovereign Bond Fund and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.
Boston, Massachusetts
July 16, 2018
2
John Hancock Advisers, LLC 601 Congress Street Boston, MA 02210 |
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March 22, 2018
To the Trustees of
John Hancock Funds
601 Congress Street
Boston, MA 02210
Re: |
Expense Limitation Letter Agreement and Voluntary Expense Limitation Notice |
With reference to each of the Advisory Agreements approved by the Board or entered into by and between John Hancock Advisers, LLC (the “Adviser”) and each of the trusts listed in Appendix A to this letter (each, a “Trust” and collectively, the “Trusts”), on behalf of each of their respective series listed in Appendix A (each, a “Fund” and collectively, the “Funds”), we hereby notify you as follows:
1. The Adviser agrees to contractually waive its advisory fees or, to the extent necessary, reimburse other expenses of each Fund as set forth in Appendix B, Appendix C, Appendix D, Appendix E, and Appendix F hereto.
2. The Adviser agrees to voluntarily waive its advisory fees or, to the extent necessary, reimburse other expenses of each Fund as set forth in Appendix G, Appendix H and Appendix I hereto.
3. We understand and intend that the Trusts will rely on this undertaking in overseeing the preparation and filing of Post-effective Amendments to the Registration Statement on Form N-1A for the Trusts and the Funds with the Securities and Exchange Commission, in accruing each Fund’s expenses for purposes of calculating its net and gross asset value per share, and for other purposes permitted under Form N-1A and/or the Investment Company Act of 1940, as amended, and we expressly permit the Trusts so to rely.
Very truly yours, | |
JOHN HANCOCK ADVISERS, LLC | |
By: | /s/ Jeffrey H. Long |
Jeffrey H. Long | |
Chief Financial Officer |
Agreed and Accepted
on behalf of each applicable Trust listed in Appendix A
By: | /s/ Charles A. Rizzo |
Charles A. Rizzo | |
Chief Financial Officer |
A copy of the document establishing each Trust is filed with the Secretary of The Commonwealth of Massachusetts. This Agreement is executed by the officer in his capacity as such and not as an individual and is not binding upon any of the Trustees, officers or shareholders of the Trusts individually but only upon the assets of the Funds.
APPENDIX A
TRUSTS and Funds
JOHN HANCOCK BOND TRUST
John Hancock ESG Core Bond Fund
John Hancock Global Conservative Absolute Return Fund
John Hancock Global Short Duration Credit Fund
John Hancock Government Income Fund
John Hancock High Yield Fund
John Hancock Investment Grade Bond Fund
JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND
John Hancock California Tax-Free Income Fund
JOHN HANCOCK CAPITAL SERIES
John Hancock Classic Value Fund
John Hancock U.S. Global Leaders Growth Fund
JOHN HANCOCK CURRENT INTEREST
John Hancock Money Market Fund
JOHN HANCOCK EXCHANGE-TRADED FUND TRUST
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
JOHN HANCOCK INVESTMENT TRUST
John Hancock Balanced Fund
John Hancock Disciplined Value International Fund
John Hancock Diversified Real Assets Fund
John Hancock Emerging Markets Equity Fund
John Hancock Enduring Assets Fund
John Hancock ESG All Cap Core Fund
John Hancock ESG International Equity Fund
John Hancock ESG Large Cap Core Fund
John Hancock Fundamental Large Cap Core Fund
John Hancock Global Focused Strategies Fund
John Hancock Seaport Fund
John Hancock Small Cap Core Fund
John Hancock Value Equity Fund
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JOHN HANCOCK INVESTMENT TRUST II
John Hancock Financial Industries Fund
John Hancock Regional Bank Fund
JOHN HANCOCK INVESTMENT TRUST III
John Hancock Greater China Opportunities Fund
JOHN HANCOCK MUNICIPAL SECURITIES TRUST
John Hancock High Yield Municipal Bond Fund
John Hancock Tax-Free Bond Fund
JOHN HANCOCK SOVEREIGN BOND FUND
John Hancock Bond Fund
JOHN HANCOCK STRATEGIC SERIES
John Hancock Income Fund
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APPENDIX B
Fund Level Contractual Limitation on Fund Level Expenses
For purposes of this Appendix:
The Adviser contractually agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) Rule 12b-1 fees, (f) transfer agent fees and service fees, (g) shareholder servicing fees, (h) borrowing costs, (i) prime brokerage fees, (j) acquired fund fees and expenses paid indirectly, and (k) short dividend expense.
“Expense Limit” means the percentage of a Fund’s average daily net assets (on an annualized basis) set forth below.
The current expense limitation agreement expires on the date specified, 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.
Limit on Fund Level | Expiration Date of | |
Fund | Expenses | Expense Limit |
Disciplined Value International Fund | 0.88% | 2/28/2019 |
ESG All Cap Core Fund | 0.81% | 2/28/2019 |
ESG International Equity Fund | 0.91% | 2/28/2019 |
ESG Large Cap Core Fund | 0.81% | 2/28/2019 |
Global Focused Strategies Fund | 1.62% | 2/28/2019 |
ESG Core Bond Fund | 0.50% | 9/30/2018 |
Global Conservative Absolute Return Fund | 0.78% | 9/30/2018 |
Investment Grade Bond Fund | 0.42% | 9/30/2018 |
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APPENDIX C
Fund Level Contractual Limitation on Total Operating Expenses
For purposes of this Appendix:
The Adviser contractually agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) borrowing costs, (f) prime brokerage fees, (g) acquired fund fees and expenses paid indirectly, and (h) short dividend expense.
“Expense Limit” means the percentage of a Fund’s average daily net assets (on an annualized basis) set forth below.
The current expense limitation agreement expires on the date specified, 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.
Limit on Fund Level | Expiration Date of | |
Fund | Expenses | Expense Limit |
John Hancock Multifactor Large Cap ETF | 0.35% | 8/31/2018 |
John Hancock Multifactor Mid Cap ETF | 0.45% | 8/31/2018 |
John Hancock Multifactor Consumer Discretionary ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Consumer Staples ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Developed International ETF | 0.45% | 8/31/2018 |
John Hancock Multifactor Energy ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Financials ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Healthcare ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Industrials ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Materials ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Small Cap ETF | 0.50% | 8/31/2019 |
John Hancock Multifactor Technology ETF | 0.50% | 8/31/2018 |
John Hancock Multifactor Utilities ETF | 0.50% | 8/31/2018 |
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APPENDIX D
Class Level Contractual Total Operating Expense Limitations
For purposes of this Appendix:
“Expenses” means all the expenses of a class of shares of a Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest expense; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fees and expenses paid indirectly; (vi) borrowing costs; (vii) prime brokerage fees; (viii) short dividend expense; and (ix) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund.
“Expense Limit” means the percentage of average daily net assets (on an annualized basis) attributable to a class of shares of the Funds set forth below.
The Adviser contractually agrees to waive advisory fees or, if necessary, reimburse expenses or make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below. The current expense limitation agreements expire on the dates specified, 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.
D-1
The Expense Limit for the classes of shares of the Funds indicated below for the purposes of this Appendix shall be as follows:
Class | Class | Class | Class | Class | Class | Class | Class | Class | Expiration Date of | |
Fund | A | B | C | I | R2 | R4 | R6 | T | NAV | Expense Limit |
Disciplined | N/A | N/A | N/A | 0.98% | N/A | N/A | 0.88% | N/A | N/A | 2/28/2019 |
Value | ||||||||||
International | ||||||||||
Fund | ||||||||||
Emerging | 1.50% | N/A | 2.20% | N/A | 1.60% | 1.35% | N/A | N/A | N/A | 2/28/2019 |
Markets Equity | ||||||||||
Fund | ||||||||||
Enduring Assets | 1.31% | N/A | 2.01% | 1.00% | N/A | N/A | 0.92% | N/A | 0.92% | 2/28/20191 |
Fund | ||||||||||
Fundamental | N/A | 1.82% | 1.82% | 0.78% | N/A | N/A | N/A | N/A | N/A | 2/28/2019 |
Large Cap Core | ||||||||||
Fund | ||||||||||
Greater China | N/A | N/A | N/A | 1.34% | N/A | N/A | N/A | N/A | N/A | 2/28/2019 |
Opportunities | ||||||||||
Fund | ||||||||||
Global | 1.14% | N/A | 1.89% | 0.89% | N/A | N/A | N/A | 1.09% | N/A | 9/30/2018 |
Conservative | ||||||||||
Absolute Return | ||||||||||
Fund | ||||||||||
Government | 0.98% | N/A | N/A | N/A | N/A | N/A | N/A | 0.98% | N/A | 9/30/2018 |
Income Fund | ||||||||||
High Yield Fund | N/A | N/A | N/A | 0.72% | N/A | N/A | N/A | N/A | N/A | 9/30/2018 |
1 At the March 20-22, 2018 meeting of the Board of Trustees of the Trusts, the Board ratified the class level contractual total operating expense limitation for Class A (1.31%), Class C (2.01%), Class I (1.00%), Class R6 (0.92%) and Class NAV (0.92%) shares of Enduring Assets Fund, with an expiration date of February 28, 2019, each effective on March 1, 2018, pursuant to notice previously provided by the Adviser.
D-2
APPENDIX E
Fund Level Contractual Limit on Other Expenses
For purposes of this Appendix:
The Adviser contractually agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) advisory fees, (f) Rule 12b-1 fees, (g) transfer agent fees and service fees, (h) shareholder servicing fees, (i) borrowing costs, (j) prime brokerage fees, (k) acquired fund fees and expenses paid indirectly, and (l) short dividend expense.
“Expense Limit” means the percentage of a Fund’s average daily net assets (on an annualized basis) set forth below.
The current expense limitation agreement expires on the date specified, 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.
Limit on Other | Expiration Date of | |
Fund | Expenses | Expense Limit |
Greater China Opportunities Fund | 0.30% | February 28, 2019 |
Value Equity Fund | 0.04% | February 28, 2019 |
E-1
APPENDIX F
Fund Level Contractual Investment Management Fee Waivers
The Adviser agrees to limit John Hancock Value Equity Fund’s management fee to a maximum annual rate of 0.66% of the Fund’s average daily net assets. The limitation will continue until at least February 28, 2019.*
* At the December 12-14, 2017 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to February 28, 2019) of the management fee limitation, effective upon the current expiration date of February 28, 2019.
The Adviser agrees to limit John Hancock Government Income Fund’s management fee to a maximum annual rate of 0.53% of the Fund’s average daily net assets. The limitation will continue until at least September 30, 2018.*
* At the December 6-8, 2016 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to September 30, 2018) of the management fee limitation, effective upon the current expiration date of September 30, 2017.
The Adviser agrees to reduce John Hancock Diversified Real Assets Fund’s management fee by an annual rate of 0.05% of the Fund’s average daily net assets. The reduction will continue until at least July 31, 2019.*
* At the December 12-14, 2017 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the advisory fee waiver (0.05%) for John Hancock Diversified Real Assets Fund with an expiration date of July 31, 2019, effective as of the commencement of operations of John Hancock Diversified Real Assets Fund.
F-1
APPENDIX G
Class Level Voluntary Total Operating Expense Limitations*
For purposes of this Appendix:
“Expenses” means all the expenses of a class of shares of the Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest expense; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fees and expenses paid indirectly; (vi) short dividend expense; and (vii) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund.
“Expense Limit” means the percentage of average daily net assets (on an annualized basis) attributable to a class of shares of the Fund set forth below.
The Adviser voluntarily agrees to waive advisory fees or, if necessary, reimburse expenses or make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below.
The Expense Limit for the classes of shares of the Fund indicated below for the purposes of this Appendix shall be as follows:
Classes | ||||||||||
Fund | A | B | C | I | R1 | R2 | R3 | R4 | R5 | R6 |
N/A |
G-1
APPENDIX H
Fund Level Voluntary Limit on Other Expenses*
For purposes of this Appendix:
The Adviser voluntarily agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Other Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Other Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) investment management fees, (f) Rule 12b-1 fees, (g) transfer agent fees and service fees, (h) shareholder servicing fees, (i) borrowing costs, (j) prime brokerage fees, (k) acquired fund fees and expenses paid indirectly, and (l) short dividend expense.
Limit on Other | |
Fund | Expenses |
Balanced Fund | 0.20% |
Classic Value Fund | 0.20% |
Emerging Markets Equity Fund | 0.25% |
Enduring Assets Fund | 0.25% |
Financial Industries Fund | 0.20% |
Fundamental Large Cap Core Fund | 0.20% |
Regional Bank Fund | 0.20% |
Seaport Fund | 0.20% |
Small Cap Core Fund | 0.20% |
U.S. Global Leaders Growth Fund | 0.20% |
Bond Fund | 0.15% |
California Tax-Free Income Fund | 0.15% |
Global Short Duration Credit Fund | 0.15% |
Government Income Fund | 0.15% |
High Yield Fund | 0.15% |
High Yield Municipal Bond Fund | 0.15% |
Income Fund | 0.15% |
Tax-Free Bond Fund | 0.15% |
Money Market Fund | 0.15% |
H-1
APPENDIX I
Voluntary Money Market Fund Expense Limitation Agreement
For John Hancock Money Market Fund, the Adviser and its affiliates may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (Rule 12b-1) fees) and/or reimburse certain expenses to the extent necessary to assist the Fund in attempting to avoid a negative yield. In addition, the Adviser and its affiliates have voluntarily agreed to waive a portion of their fees (including, but not limited to, Rule 12b-1 fees) and/or reimburse certain expenses to the extent necessary to assist the fund in attempting to achieve a positive yield. These fee waivers and/or expense reimbursements are voluntary and may be amended or terminated at any time by the Adviser on notice to the Trust
I-1
John Hancock Funds, LLC |
March 22, 2018
To the Trustees of
John Hancock Funds
601 Congress Street
Boston, MA 02210
Re: |
Rule 12b-1 Fee Waiver Letter Agreement |
With reference to each of the Distribution Plans entered into by and between John Hancock Funds, LLC (the “Distributor”) and each of the trusts listed in Appendix A to this letter (each, a “Trust” and collectively, the “Trusts”), on behalf of each of their respective series listed in Appendix A (each, a “Fund” and collectively, the “Funds”), we hereby notify you as follows:
1. The Distributor agrees to contractually waive and limit its Rule 12b-1 distribution fees and/or service fees to the extent necessary to achieve the aggregate Rule 12b-1 distribution and service fees of each Fund as set forth in Appendix B hereto. The expense waiver agreements expire on the dates specified, unless renewed by mutual agreement of the Fund and the Distributor based upon a determination that this is appropriate under the circumstances at that time.
2. We understand and intend that the Trusts will rely on this undertaking in overseeing the preparation and filing of Post-effective Amendments to the Registration Statements on Form N-1A for the Trusts and the Funds with the Securities and Exchange Commission, in accruing each Fund’s expenses for purposes of calculating its net and gross asset value per share, and for other purposes permitted under Form N-1A and/or the Investment Company Act of 1940, as amended, and we expressly permit the Trusts so to rely.
Sincerely, | |
JOHN HANCOCK FUNDS, LLC | |
By: | /s/ Jeffrey H. Long |
Jeffrey H. Long | |
Chief Financial Officer |
Agreed and Accepted
on behalf of each applicable Trust listed in Appendix A
By: | /s/ Charles A. Rizzo |
Charles A. Rizzo | |
Chief Financial Officer |
A copy of the document establishing each Trust is filed with the Secretary of The Commonwealth of Massachusetts. This Agreement is executed by the officer in his capacity as such and not as an individual and is not binding upon any of the Trustees, officers or shareholders of the Trusts individually but only upon the assets of the Funds.
APPENDIX A
TRUSTS and Funds
JOHN HANCOCK BOND TRUST
John Hancock ESG Core Bond Fund
John Hancock Global Conservative Absolute Return Fund
John Hancock Global Short Duration Credit Fund
John Hancock Government Income Fund
John Hancock High Yield Fund
John Hancock Investment Grade Bond Fund
JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND
John Hancock California Tax-Free Income Fund
JOHN HANCOCK CAPITAL SERIES
John Hancock Classic Value Fund
John Hancock U.S. Global Leaders Growth Fund
JOHN HANCOCK CURRENT INTEREST
John Hancock Money Market Fund
JOHN HANCOCK INVESTMENT TRUST
John Hancock Balanced Fund
John Hancock Disciplined Value International Fund
John Hancock Diversified Real Assets Fund
John Hancock Emerging Markets Equity Fund
John Hancock Enduring Assets Fund
John Hancock ESG All Cap Core Fund
John Hancock ESG International Equity Fund
John Hancock ESG Large Cap Core Fund
John Hancock Fundamental Large Cap Core Fund
John Hancock Global Focused Strategies Fund
John Hancock Seaport Fund
John Hancock Small Cap Core Fund
John Hancock Value Equity Fund
JOHN HANCOCK INVESTMENT TRUST II
John Hancock Financial Industries Fund
John Hancock Regional Bank Fund
JOHN HANCOCK INVESTMENT TRUST III
John Hancock Greater China Opportunities Fund
JOHN HANCOCK MUNICIPAL SECURITIES TRUST
John Hancock High Yield Municipal Bond Fund
John Hancock Tax-Free Bond Fund
JOHN HANCOCK SOVEREIGN BOND FUND
John Hancock Bond Fund
JOHN HANCOCK STRATEGIC SERIES
John Hancock Income Fund
A-1
APPENDIX B
Class | Class | Class | Class | Expiration Date of | |
Fund | A | B | C | R4 | Waiver/Limit |
Balanced Fund | N/A | N/A | N/A | 0.15% | 2/28/2019 |
Classic Value Fund | N/A | N/A | N/A | 0.15% | 2/28/2019 |
Disciplined Value International Fund | N/A | N/A | N/A | 0.15% | 2/28/2019 |
Emerging Markets Equity Fund | N/A | N/A | N/A | 0.15% | 2/28/2019 |
Fundamental Large Cap Core Fund | N/A | N/A | N/A | 0.15% | 2/28/2019 |
Bond Fund | N/A | N/A | N/A | 0.15% | 9/30/2018 |
California Tax-Free Income Fund | N/A | 0.90% | 0.90% | N/A | 9/30/2018 |
High Yield Municipal Bond Fund | 0.15% | 0.90% | 0.90% | N/A | 9/30/2018 |
Income Fund | N/A | N/A | N/A | 0.15% | 9/30/2018 |
Investment Grade Bond Fund | N/A | N/A | N/A | 0.15% | 9/30/2018 |
Tax-Free Bond Fund | 0.15% | 0.90% | 0.90% | N/A | 9/30/2018 |
Money Market Fund | 0.00% | 0.00% | 0.00% | N/A | 7/31/20191 |
1 At the March 20-22, 2018 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the waiver of all 12b-1 fees for Class A, Class B, and Class C shares for the Money Market Fund through July 31,2019, each effective upon the current expiration date of July 31, 2018.
B-1
In regard to the Interfund Lending program, I certify that the Advisers on behalf of the Funds have implemented procedures reasonably designed to achieve compliance with the SEC Exemptive Order and Board approved procedures which includes the following objectives: (a) that the Interfund Loan Rate will be higher than the Repo Rate, but lower than the Bank Loan Rate; (b) compliance with the collateral requirements as set forth in the Application; (c) compliance with the percentage limitations on interfund borrowing and lending; (d) allocation of interfund borrowing and lending demand in an equitable manner and in accordance with procedures established by the Board; and (e) that the Interfund Loan Rate does not exceed the interest rate on any third-party borrowings of a borrowing John Hancock Fund at the time of the Interfund Loan.
/s/ Frank Knox | |||
Frank Knox | Date: July 13, 2018 | ||
Chief Compliance Officer | |||
John Hancock Group of Funds |