-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FOHEXmkilHLdHfE+y8uBtblm7S8qIn5mSv1Hs5ewPNe8WlyxnmqxWzrSZMN1NW5a XxPRmwRrdPDFnJBNlMIrfg== 0000928816-04-000529.txt : 20040630 0000928816-04-000529.hdr.sgml : 20040630 20040630125222 ACCESSION NUMBER: 0000928816-04-000529 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040430 FILED AS OF DATE: 20040630 EFFECTIVENESS DATE: 20040630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANCOCK JOHN EQUITY TRUST CENTRAL INDEX KEY: 0000750741 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04079 FILM NUMBER: 04890720 BUSINESS ADDRESS: STREET 1: 101 HUNTINGTON AVE STREET 2: 10TH FLOOR CITY: BOSTON STATE: MA ZIP: 02199 BUSINESS PHONE: 6173751700 MAIL ADDRESS: STREET 1: 101 HUNTINGTON AVENUE STREET 2: 10TH FLOOR CITY: BOSTON STATE: MA ZIP: 02199 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN SPECIAL EQUITIES FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN SPECIAL EQUITIES TRUST DATE OF NAME CHANGE: 19901218 N-CSR 1 jheshr1.txt JOHN HANCOCK EQUITY TRUST June 24, 2004 EDGAR United States Securities and Exchange Commission Judiciary Plaza 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Form N-CSR John Hancock Equity Trust (the "Registrant") on behalf of: John Hancock Growth Trends Fund File Nos. 2-92548; 811-4079 Ladies and Gentlemen: Enclosed herewith for filing pursuant to the Investment Company Act of 1940 and the Securities Exchange Act of 1934 is the Registrants Form N-CSR filing for the period ending April 30, 2004. If you have any questions or comments regarding this filing, please contact the undersigned at (617) 375-1722. Sincerely, /s/Brian E. Langenfeld Brian E. Langenfeld Attorney and Assistant Secretary ITEM 1. REPORT TO SHAREHOLDERS. JOHN HANCOCK Growth Trends Fund 4.30.2004 Semiannual Report [A 2" x 1" John Hancock (Signature)/John Hancock Funds logo in lower, center middle of page. A tag line below reads "JOHN HANCOCK FUNDS."] [A photo of James A. Shepherdson, Chairman President and Chief Executive Officer, flush left next to first paragraph.] WELCOME Table of contents Your fund at a glance page 1 Managers' report page 2 A look at performance page 6 Growth of $10,000 page 7 Fund's investments page 8 Financial statements page 12 For your information page 25 To Our Shareholders, I am pleased to be writing to you as Chairman, President and Chief Executive Officer of John Hancock Funds, LLC. As you may know, John Hancock Financial Services, Inc. -- the parent company of John Hancock Funds -- was acquired by Manulife Financial Corporation on April 28, 2004. The merger combines two exceptionally strong companies into a single, integrated, global market leader whose scale and capital will create an industry pacesetter strengthening our company's leadership in markets around the world. Although this change has no impact on the mutual funds you have invested in, it did bring with it some changes in the executive-level management of John Hancock Funds. Specifically, Maureen Ford Goldfarb has decided to step down as chairman, president and chief executive officer in order to pursue personal interests. Since her appointment in January 2000, Maureen has provided John Hancock Funds with strong leadership and steady guidance through several years of extremely turbulent market and industry conditions. Effective May 12, 2004, I have also been appointed by your Board of Trustees to the roles of Trustee, President and Chief Executive Officer of your fund. I have been in the investment business for over 25 years, most recently as President of Retirement Services at John Hancock Financial Services. In that role, my responsibilities included developing and directing the sale of John Hancock's variable and fixed annuity businesses through a diverse distribution network of banks and broker-dealers -- including wirehouses, regional brokerage houses and financial planners. Prior to joining John Hancock, I served as Co-Chief Executive Officer of MetLife Investors Group, a subsidiary of MetLife, Inc. In that capacity my responsibilities included the design, manufacture and distribution of MetLife's annuity and life insurance products sold through third-party channels. Although there has been a change in executive-level management, the one thing that never wavers is John Hancock Funds' commitment to placing the needs of our shareholders above all else. We are all dedicated to the task of working with you and your financial advisors to help you reach your long-term financial goals. Sincerely, /S/ JAMES A. SHEPHERDSON James A. Shepherdson, Chief Executive Officer This commentary reflects the CEO's views as of April 30, 2004. They are subject to change at any time. YOUR FUND AT A GLANCE The Fund seeks long-term growth of capital by investing approxi- mately one-third of its assets in equity securities of U.S. and foreign companies in each of the following sectors: financial services, health care and technology. Over the last six months * The stock market advanced on strong economic and corporate earnings news. * Technology was the worst-performing sector, retreating after strong 2003 advances, and financials underperformed on interest-rate hike fears. * Health-care stocks produced strong results and were the Fund's best-performing sector, in part due to the Fund's large stake in biotech stocks. [Bar chart with heading "John Hancock Growth Trends Fund." Under the heading is a note that reads "Fund performance for the six months ended April 30, 2004." The chart is scaled in increments of 2% with 0% at the bottom and 4% at the top. The first bar represents the 3.09% total return for Class A. The second bar represents the 2.59% total return for Class B. The third bar represents the 2.59% total return for Class C. A note below the chart reads "Total returns for the Fund are at net asset value with all distributions reinvested."] Top holdings Financial Services 8.2% Bank of America 8.0% Citigroup 7.8% Wells Fargo 7.7% State Street 7.1% American International Group Health Care 6.2% Neurocrine Biosciences 6.0% WebMD 4.9% Gilead Sciences 4.2% Abbott Laboratories 4.0% Pfizer Technology 12.5% Microsoft 10.4% IBM 7.3% QUALCOMM 7.0% Cisco Systems 4.7% Intel As a percentage of Financial Services, Health Care and Technology net assets, respectively, on 4-30-04. 1 MANAGERS' REPORT JOHN HANCOCK Growth Trends Fund After a strong run in 2003, the stock market turned choppy during the first few months of 2004, as a dynamic tension emerged between investors focused on positive earnings growth and those concerned about the prospect of rising interest rates. Nonetheless, the market posted a solid return in the six-month period ending April 30, 2004, with the Standard & Poor's 500 Index advancing 6.27%. In this period, the Fund's Class A, Class B and Class C shares posted total returns of 3.09%, 2.59% and 2.59%, respectively, at net asset value. That compared with the 5.73% return of the average multi-cap core fund, according to Lipper, Inc.1 Keep in mind that your net asset value return will differ from the Fund's performance if you were not invested in the Fund for the entire period and did not reinvest all distributions. For historical performance information, please see pages six and seven. "Health-care stocks were standouts among the Fund's three sectors." Health-care stocks were standouts among the Fund's three sectors, while technology stocks retreated in this period after strong gains in 2003, and financials underperformed the broad market on fears that rising interest rates would stunt earnings growth. FINANCIALS By James K. Schmidt, CFA, John Hancock Advisers, LLC Financial stocks produced positive results over the last six months, but growing fears that an interest-rate hike was increasingly certain and increasingly near caused financial companies to falter. Rising rate fears hit banks the hardest, and they lagged behind the sector. But banks that were involved in mergers stood out, and they were among the portfolio's top performers. Both FleetBoston and Bank of America served us well when their stocks rose after an initial shakeout period following the merger announcement in late October 2003. J.P. Morgan Chase's stock rose with the announcement that it was buying Bank One Corp. Some of our biggest disappointments also came from the bank group, however. Earnings disappointments hurt the stocks of 2 State Street and Fifth Third Bancorp., while M&T Bank Corp. fell on reduced mortgage-related activity and the challenging mortgage environment. After several tough years, many insurance companies rebounded in the period. Reinsurers RenaissanceRe and Transatlantic Holdings served us well, as did our stock selection among life insurers such as Prudential Financial and Hartford Financial. They benefited from the market's rebound, which boosted sales of their variable annuity products. Property and casualty giant American International Group also rebounded from previous troubles. Asset managers that avoided the mutual fund scandals also did well, such as Legg Mason. Investment bankers had solid earnings growth, but the group's results were mixed, as the market remained wary about interest rates and volatile earnings. Our large position in Goldman Sachs helped performance. "...financials underper- formed the broad market on fears that rising interest rates would stunt earnings growth." We remain optimistic about the prospects for financial stocks and will continue to favor those companies with leverage to an economic and market recovery, including brokers, asset managers, financial processors and banks with capital markets exposure. HEALTH CARE By Jordan Schreiber, CFA, Mercury Advisors The health-care sector posted a solid gain during the period, outperforming the broader market. Several health-care subsectors did surprisingly well over the past six months, notably managed care and biotechnology. Even pharmaceuticals, viewed as the most defensive health-care subsector, outperformed the broader market, as investor concerns about potentially onerous health-care legislation diminished and valuations reached historically attractive levels. Fund performance was helped by having a large presence in the biotechnology subsector. Standouts in this area included Neurocrine Biosciences, Inc., which is developing a new drug for treating insomnia, a large unsatisfied market, and Charles River Laboratories, a leader in providing animal models for drug development. We were also helped by our holdings in Celgene Corp., 3 whose drug Thalomid is a leading treatment for multiple myeloma, and Abgenix Inc., which is a technology leader in developing fully human antibodies against numerous diseases. The Fund also benefited from its holdings in medical device and orthopedics companies such as Guidant Corp. and Smith & Nephew PLC. [Table at top left-hand side of page entitled "Top five industry groups." The first listing is Medical 24%, the second is Computers 20%, the third Medical -- drugs 13%, the fourth Banks -- United States 13% and the fifth Insurance 8%.] Disappointments during the period include generic drug maker Taro Pharmaceuticals Inc., which had a surprise earnings shortfall, and Cubist Pharmaceuticals, whose new highly-effective antibiotic is experiencing a slower than expected sales ramp. Looking ahead, valuations in the large-cap pharmaceutical sector have become more attractive. Hospital admission trends appear to be improving and bad debt concerns sparked by a slow economy are moderating, which could offer opportunity for that subsector. We also believe biotechnology remains a dynamic long-term growth area; however, we plan to remain diversified within the health-care sector so as to minimize risk. [Pie chart at middle of page with heading "Portfolio diversification As a percentage of net assets on 4-30-04." The chart is divided into four sections (from top to left): Medical 37%, Technology 32%, Financial 30% and Short-term investments & other 1%.] TECHNOLOGY By Anurag Pandit, CFA, John Hancock Advisers, LLC Technology was the only sector of the S&P 500 to decline during the past six months. Concerns about relatively high valuations weighed on technology stocks, and threats of terrorism and rising interest rates led many investors to reduce the risk profile of their portfolios. We focused on companies that would benefit the most from an increase in technology spending. In particular, we emphasized software, storage and communications equipment stocks over hardware and semiconductor names. 4 [Table at top of page entitled "SCORECARD." The header for the left column is "INVESTMENT" and the header for the right column is "PERIOD'S PERFORMANCE...AND WHAT'S BEHIND THE NUMBERS." The first listing is Neurocrine Bioscience followed by an up arrow with the phrase "Developing new insomnia drug." The second listing is Bank of America followed by an up arrow with the phrase "Boosted by announced acquisition of FleetBoston." The third listing is Intel followed by a down arrow with the phrase "Lackluster 2004 outlook hurts stock."] Our stock selection was most successful in the software and communications equipment segments. The best performance contributor was Autodesk, which makes the leading software for drafting and building design. Symantec, a maker of computer security software, and Websense, which makes Internet monitoring software, also posted strong results. Among communications equipment stocks, wireless chipmaker QUALCOMM was the top performance contributor. The company raised its dividend and earnings forecasts based on higher-than-expected revenues. Cell phone manufacturer Motorola also performed well, benefiting from the successful introduction of new products. "Technology was the only sector of the S&P 500 to decline during the past six months." Our stock selection fared less well in semiconductor stocks, which detracted the most from performance. Intel posted negative results after providing a lackluster 2004 outlook. The portfolio's semiconductor equipment holdings Applied Materials and KLA-Tencor also suffered losses during the period. Despite the recent decline in technology stocks, we believe the outlook for the sector is still positive. Further economic improvement, as evidenced by the recent rebound in job growth, should convince corporations to loosen their purse strings after several years of depressed technology spending. This commentary reflects the views of the portfolio managers through the end of the Fund's period discussed in this report. The managers' statements reflect their own opinions. As such, they are in no way guarantees of future events, and are not intended to be used as investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant. Sector investing is subject to greater risks than the market as a whole. 1 Figures from Lipper, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower. 5 A LOOK AT PERFORMANCE For the period ended April 30, 2004 Class A Class B Class C Inception date 9-22-00 9-22-00 9-22-00 Average annual returns with maximum sales charge (POP) One year 16.63% 16.76% 19.45% Since inception -15.71% -15.83% -15.35% Cumulative total returns with maximum sales charge (POP) Six months -2.07% -2.41% 0.66% One year 16.63% 16.76% 19.45% Since inception -45.97% -46.26% -45.15% Performance figures assume all distributions are reinvested. Returns with maximum sales charge reflect a sales charge on Class A shares of 5% and Class C shares of 1%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares' CDSC declines annually between years 1-6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. The return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The returns reflect past results and should not be considered indicative of future performance. The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Fund's performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable. These reductions can be terminated in the future. See the prospectus for details. 6 GROWTH OF $10,000 This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we've shown the same investment in the Standard & Poor's 500 Index. Line chart with the heading "GROWTH OF $10,000." Within the chart are three lines. The first line represents the Index and is equal to $8,083 as of April 30, 2004. The second line represents the value of the hypothetical $10,000 investment made in the John Hancock Growth Trends Fund, before sales charge, and is equal to $5,690 as of April 30, 2004. The third line represents the value of the same hypothetical investment made in the John Hancock Growth Trends Fund, after sales charge, and is equal to $5,403 as of April 30, 2004. Cum Value Cum Value of $10K of $10K S&P 500 Plot Date (No Load) (w/Load) Index 9-22-00 $10,000 $9,500 $10,000 9-30-00 10,000 9,497 9,472 10-31-00 9,540 9,060 9,432 1-31-01 8,670 8,234 9,041 4-30-01 7,390 7,018 8,294 5-31-01 7,310 6,942 8,349 7-31-01 6,842 6,497 8,066 10-31-01 5,880 5,584 7,083 1-31-02 6,261 5,945 7,581 4-30-02 5,810 5,517 7,247 5-31-02 5,519 5,242 7,193 7-31-02 4,598 4,366 6,160 10-31-02 4,498 4,271 6,013 1-31-03 4,367 4,148 5,836 4-30-03 4,638 4,404 6,282 5-31-03 5,008 4,756 6,613 7-31-03 5,269 5,004 6,816 10-31-03 5,519 5,242 7,264 1-31-04 5,940 5,641 7,854 4-30-04 5,690 5,403 8,083 Class B Class C 1 Period beginning 9-22-00 9-22-00 Without sales charge $5,540 $5,540 With maximum sales charge $5,374 $5,485 Index $8,083 $8,083 Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Fund's Class B and Class C shares, respectively, as of April 30, 2004. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes. Standard & Poor's 500 Index is an unmanaged index that includes 500 widely traded common stocks. It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did. 1 No contingent deferred sales charge applicable. 7 FINANCIAL STATEMENTS FUND'S INVESTMENTS Securities owned by the Fund on April 30, 2004 (unaudited) This schedule is divided into two main categories: common stocks and short-term investments. Common stocks are further broken down by industry group. Short-term investments, which represent the Fund's cash position, are listed last.
ISSUER SHARES VALUE COMMON STOCKS 99.10% $196,864,224 (Cost $174,517,136) Advertising 0.14% 278,012 DoubleClick, Inc.* 34,450 278,012 Banks -- United States 13.16% 26,134,345 Bank of America Corp. 61,606 4,958,667 Charter One Financial, Inc. 42,000 1,401,540 Fifth Third Bancorp 78,000 4,185,480 M&T Bank Corp. 10,000 850,000 SouthTrust Corp. 128,000 3,978,240 State Street Corp. 96,000 4,684,800 Wachovia Corp. 30,000 1,372,500 Wells Fargo & Co. 83,300 4,703,118 Broker Services 2.41% 4,794,350 Goldman Sachs Group, Inc. (The) 34,000 3,289,500 Lehman Brothers Holdings, Inc. 10,000 734,000 Morgan Stanley 15,000 770,850 Computers 20.36% 40,432,787 Autodesk, Inc. 82,650 2,768,775 BARRA, Inc. 35,750 1,460,387 Cisco Systems, Inc.* 215,450 4,496,441 Citrix Systems, Inc.* + 93,050 1,772,602 Dell, Inc.* 44,700 1,551,537 Digital Insight Corp.* + 89,050 1,718,665 eBay, Inc.* + 21,600 1,724,112 EMC Corp.* 182,986 2,042,124 Hewlett-Packard Co. 52,715 1,038,485 International Business Machines Corp. 75,995 6,700,479 Lexmark International, Inc.* 21,958 1,986,321 Macromedia, Inc.* 43,700 900,220 McDATA Corp. (Class A) * 59,600 317,668 Microsoft Corp. 311,650 8,093,551 Symantec Corp.* + 34,000 1,531,700 See notes to financial statements. 8 ISSUER SHARES VALUE Computers (continued) VeriSign, Inc.* 72,650 $1,171,845 Websense, Inc.* + 39,250 1,157,875 Electronics 5.58% 11,083,736 Applied Materials, Inc.* 105,950 1,931,468 Intel Corp. 117,800 3,030,994 KLA-Tencor Corp.* + 26,550 1,106,339 RF Micro Devices, Inc.* + 59,200 435,712 Taiwan Semiconductor Manufacturing Co. Ltd. American Depositary Receipts (ADR) (Taiwan) *+ 243,610 2,321,603 Texas Instruments, Inc. 89,945 2,257,620 Finance 6.61% 13,137,861 American Express Co. 84,000 4,111,800 Citigroup, Inc. 101,000 4,857,090 First Data Corp. 32,850 1,491,061 J.P. Morgan Chase & Co. 40,000 1,504,000 Legg Mason, Inc. 11,000 1,012,660 National Financial Partners Corp.* 5,160 161,250 Insurance 7.53% 14,959,037 American International Group, Inc. 60,000 4,299,000 Benfield Group Plc (United Kingdom) 16,035 74,786 Hartford Financial Services Group, Inc. (The) 7,200 439,776 Marsh & McLennan Cos., Inc. 93,250 4,205,575 PartnerRe Ltd. (Bermuda) 50,000 2,865,000 RenaissanceRe Holdings Ltd. (Bermuda) 16,000 843,040 Scottish Re Group Ltd. (Cayman Islands) 32,000 700,160 Transatlantic Holdings, Inc. 9,000 805,500 Willis Group Holdings Ltd. (Bermuda) 20,000 726,200 Leisure 0.18% 364,228 Imax Corp. (Canada) *+ 73,300 364,228 Media 0.66% 1,310,994 Macrovision Corp.* 77,850 1,310,994 Medical 23.75% 47,181,280 Abgenix, Inc.* 150,000 2,440,500 Aetna, Inc. 30,000 2,482,500 AmerisourceBergen Corp. 45,000 2,605,050 Amgen, Inc.* 30,000 1,688,100 Anthem, Inc.* 15,000 1,328,700 Baxter International, Inc. 75,000 2,373,750 Boston Scientific Corp.* 45,000 1,853,550 Cell Genesys, Inc.* 110,000 1,215,500 Cerner Corp.* 40,000 1,712,800 Charles River Laboratories International, Inc.* 60,000 2,760,000 Gilead Sciences, Inc.* 60,000 3,649,800 See notes to financial statements. 9 ISSUER SHARES VALUE Medical (continued) Guidant Corp. 45,000 $2,835,450 HCA, Inc. 55,000 2,234,650 Integra LifeSciences Holdings* 55,000 1,760,000 Lexicon Genetics, Inc.* 296,200 2,091,172 Manor Care, Inc.* 75,000 2,433,000 Medarex, Inc.* 101,900 971,107 Medtronic, Inc. 45,000 2,270,700 Millennium Pharmaceuticals, Inc.* 90,000 1,349,100 Smith & Nephew Plc (United Kingdom) 151,736 1,540,501 Triad Hospitals, Inc.* 35,000 1,190,350 WebMD Corp.* 500,000 4,395,000 Medical -- Drugs 13.32% 26,464,029 Abbott Laboratories 70,000 3,081,400 Celgene Corp.* 55,000 2,842,950 Cubist Pharmaceuticals, Inc.* 170,000 1,689,800 Cypress Bioscience Inc.* 35,600 517,268 Impax Laboratories, Inc.* 70,000 1,456,700 Neurocrine Biosciences, Inc.* 70,000 4,594,100 NPS Pharmaceuticals, Inc.* 80,000 2,004,000 Pfizer, Inc. 83,400 2,982,384 Rigel Pharmaceuticals, Inc.* 100,000 2,121,000 Roche Holding AG (Switzerland) 12,000 1,258,677 Shire Pharmaceuticals Group Plc (ADR) (United Kingdom)* 85,000 2,358,750 Taro Pharmaceutical Industries Ltd. (Israel)* 36,000 1,557,000 Mortgage Banking 0.69% 1,374,400 Fannie Mae 20,000 1,374,400 Telecommunications 4.71% 9,349,165 American Tower Corp. (Class A)* + 102,400 1,274,880 Andrew Corp.* 38,850 658,508 Motorola, Inc. 149,659 2,731,277 QUALCOMM, Inc.* + 75,000 4,684,500 See notes to financial statements. 10 INTEREST PAR VALUE ISSUER, DESCRIPTION, MATURITY DATE RATE (000s OMITTED) VALUE SHORT-TERM INVESTMENTS 9.20% $18,285,211 (Cost $18,285,211) Joint Repurchase Agreement 1.25% Investment in a joint repurchase agreement transaction with Barclays Capital, Inc. -- Dated 04-30-04, due 05-03-04 (Secured by U.S. Treasury Inflation Indexed Bond, 3.875% due 04-15-29, and U.S. Treasury Inflation Indexed Note, 3.000% due 07-15-12) 0.93% $2,484 2,484,000 SHARES Cash Equivalents 7.95% AIM Cash Investment Trust ** 15,801,211 15,801,211 TOTAL INVESTMENTS 108.30% $215,149,435 OTHER ASSETS AND LIABILITIES, NET (8.30%) ($16,488,426) TOTAL NET ASSETS 100.00% $198,661,009 * Non-income-producing security. + All or a portion of this security is on loan as of April 30, 2004 ** Represents investment of securities lending collateral. Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer. The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.
See notes to financial statements. 11 FINANCIAL STATEMENTS ASSETS AND LIABILITIES April 30, 2004 (unaudited) This Statement of Assets and Liabilities is the Fund's balance sheet. It shows the value of what the Fund owns, is due and owes. You'll also find the net asset value and the maximum offering price per share. ASSETS Investments at value (cost $192,802,347) including $15,002,168 of securities loaned $215,149,435 Receivable for investments sold 1,164,481 Receivable for shares sold 44,545 Dividends and interest receivable 159,824 Other assets 8,611 Total assets 216,526,896 LIABILITIES Due to custodian 427,790 Payable for investments purchased 1,069,587 Payable for shares repurchased 217,463 Payable for securities on loan 15,801,211 Payable to affiliates Management fees 170,458 Distribution and service fees 12,825 Other 107,432 Other payables and accrued expenses 59,121 Total liabilities 17,865,887 NET ASSETS Capital paid-in 401,902,521 Accumulated net realized loss on investments and foreign currency transactions (224,398,403) Net unrealized appreciation of investments and translation of assets and liabilities in foreign currencies 22,348,108 Accumulated net investment loss (1,191,217) Net assets $198,661,009 NET ASSET VALUE PER SHARE Based on net asset values and shares outstanding Class A ($64,533,190 [DIV] 11,355,901 shares) $5.68 Class B ($97,809,538 [DIV] 17,643,750 shares) $5.54 Class C ($36,318,281 [DIV] 6,551,457 shares) $5.54 MAXIMUM OFFERING PRICE PER SHARE Class A 1 ($5.68 [DIV] 95%) $5.98 Class C ($5.54 [DIV] 99%) $5.60 1 On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. See notes to financial statements. 12 FINANCIAL STATEMENTS OPERATIONS For the period ended April 30, 2004 (unaudited) 1 This Statement of Operations summarizes the Fund's investment income earned and expenses incurred in oper- ating the Fund. It also shows net gains (losses) for the period stated. INVESTMENT INCOME Dividends (net of foreign withholding taxes of $3,399) $1,001,766 Securities lending 45,841 Interest 21,288 Total investment income 1,068,895 EXPENSES Investment management fees 1,063,249 Class A distribution and service fees 103,107 Class B distribution and service fees 521,319 Class C distribution and service fees 198,240 Transfer agent fees 561,488 Custodian fees 47,702 Accounting and legal services fees 31,897 Registration and filing fees 16,588 Printing 15,681 Professional fees 12,253 Miscellaneous 8,363 Trustees' fees 5,627 Interest 4,876 Securities lending fees 1,124 Total expenses 2,591,514 Less expense reductions (333,463) Net expenses 2,258,051 Net investment loss (1,189,156) REALIZED AND UNREALIZED GAIN (LOSS) Net realized loss on Investments (96,652) Foreign currency transactions (2,407) Change in net unrealized appreciation (depreciation) of Investments 7,783,701 Translation of assets and liabilities in foreign currencies 420 Net realized and unrealized gain 7,685,062 Increase in net assets from operations $6,495,906 1 Semiannual period from 11-1-03 through 4-30-04. See notes to financial statements. 13 FINANCIAL STATEMENTS CHANGES IN NET ASSETS These Statements of Changes in Net Assets show how the value of the Fund's net assets has changed during the last two periods. The dif- ference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and any increase or decrease in money share- holders invested in the Fund. YEAR PERIOD ENDED ENDED 10-31-03 4-30-04 1 INCREASE (DECREASE) IN NET ASSETS From operations Net investment loss ($2,264,556) ($1,189,156) Net realized loss (51,590,047) (99,059) Change in net unrealized appreciation (depreciation) 94,112,450 7,784,121 Increase in net assets resulting from operations 40,257,847 6,495,906 From Fund share transactions (35,411,929) (21,099,446) NET ASSETS Beginning of period 208,418,631 213,264,549 End of period 2 $213,264,549 $198,661,009 1 Semiannual period from 11-1-03 through 4-30-04. Unaudited. 2 Accumulated net investment loss of $2,061 and $1,191,217, respectively. See notes to financial statements. 14 FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS CLASS A SHARES The Financial Highlights show how the Fund's net asset value for a share has changed since the end of the previous period.
PERIOD ENDED 10-31-00 1 10-31-01 10-31-02 10-31-03 4-30-04 2 PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $10.00 $9.54 $5.87 $4.49 $5.51 Net investment income (loss) 3 0.01 (0.05) (0.05) (0.03) (0.02) Net realized and unrealized gain (loss) on investments (0.47) (3.61) (1.33) 1.05 0.19 Total from investment operations (0.46) (3.66) (1.38) 1.02 0.17 Less distributions From net investment income -- (0.01) -- -- -- Net asset value, end of period $9.54 $5.87 $4.49 $5.51 $5.68 Total return 4,5 (%) (4.60) 6 (38.37) (23.51) 22.72 3.09 6 RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (in millions) $86 $99 $65 $69 $65 Ratio of expenses to average net assets (%) 1.65 7 1.65 1.65 1.65 1.65 7 Ratio of adjusted expenses to average net assets 8 (%) 1.75 7 1.85 1.88 2.02 1.96 7 Ratio of net investment income (loss) to average net assets (%) 0.57 7 (0.70) (0.91) (0.64) (0.64)7 Portfolio turnover (%) 11 116 68 76 31
See notes to financial statements. 15 FINANCIAL HIGHLIGHTS CLASS B SHARES
PERIOD ENDED 10-31-00 1 10-31-01 10-31-02 10-31-03 4-30-04 2 PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $10.00 $9.54 $5.83 $4.42 $5.40 Net investment loss 3 -- 9 (0.10) (0.09) (0.06) (0.04) Net realized and unrealized gain (loss) on investments (0.46) (3.61) (1.32) 1.04 0.18 Total from investment operations (0.46) (3.71) (1.41) 0.98 0.14 Net asset value, end of period $9.54 $5.83 $4.42 $5.40 $5.54 Total return 4,5 (%) (4.60) 6 (38.89) (24.19) 22.17 2.59 6 RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (in millions) $125 $161 $102 $104 $98 Ratio of expenses to average net assets (%) 2.34 7 2.35 2.35 2.35 2.35 7 Ratio of adjusted expenses to average net assets 8 (%) 2.44 7 2.55 2.58 2.72 2.66 7 Ratio of net investment loss to average net assets (%) (0.13) 7 (1.40) (1.61) (1.34) (1.35) 7 Portfolio turnover (%) 11 116 68 76 31
See notes to financial statements. 16 FINANCIAL HIGHLIGHTS CLASS C SHARES
PERIOD ENDED 10-31-00 1 10-31-01 10-31-02 10-31-03 4-30-04 2 PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $10.00 $9.54 $5.83 $4.42 $5.40 Net investment loss 3 -- 9 (0.10) (0.09) (0.06) (0.04) Net realized and unrealized gain (loss) on investments (0.46) (3.61) (1.32) 1.04 0.18 Total from investment operations (0.46) (3.71) (1.41) 0.98 0.14 Net asset value, end of period $9.54 $5.83 $4.42 $5.40 $5.54 Total return 4,5 (%) (4.60) 6 (38.89) (24.19) 22.17 2.59 6 RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (in millions) $53 $69 $42 $41 $36 Ratio of expenses to average net assets (%) 2.34 7 2.35 2.35 2.35 2.35 7 Ratio of adjusted expenses to average net assets 8 (%) 2.44 7 2.55 2.58 2.72 2.66 7 Ratio of net investment loss to average net assets (%) (0.13) 7 (1.40) (1.61) (1.34) (1.34) 7 Portfolio turnover (%) 11 116 68 76 31
1 Class A, Class B and Class C shares began operations on 9-22-00. 2 Semiannual period from 11-01-03 through 4-30-04. Unaudited. 3 Based on average of the shares outstanding. 4 Assumes dividend reinvestment and does not reflect the effect of sales charges. 5 Total returns would have been lower had certain expenses not been reduced during the periods shown. 6 Not annualized. 7 Annualized. 8 Does not take into consideration expense reductions during the periods shown. 9 Less than $0.01 per share. See notes to financial statements. 17 NOTES TO STATEMENTS Unaudited NOTE A Accounting policies John Hancock Growth Trends Fund (the "Fund") is a diversified series of John Hancock Equity Trust, an open-end management investment company registered under the Investment Company Act of 1940. The investment objective of the Fund is to achieve long-term growth of capital. The Fund will invest in a number of industry groups without concentration in any particular industry. The Trustees have authorized the issuance of multiple classes of shares of the Fund, designated as Class A, Class B and Class C shares. The shares of each class represent an interest in the same portfolio of investments of the Fund and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Significant accounting policies of the Fund are as follows: Valuation of investments Securities in the Fund's portfolio are valued on the basis of market quotations, valuations provided by independent pricing services or if quotations are not readily available, or the value has been materially affected by events occurring after the closing of a foreign market, at fair value as determined in good faith in accordance with procedures approved by the Trustees. Short-term debt investments maturing within 60 days are valued at amortized cost, which approximates market value. Investments in AIM Cash Investment Trust are valued at their net asset value each business day. All portfolio transactions initially expressed in terms of foreign currencies have been translated into U.S. dollars as described in "Foreign currency translation" below. Joint repurchase agreement Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Fund, along with other registered investment companies having a management contract with John Hancock Advisers, LLC (the "Adviser"), a wholly owned subsidiary of John Hancock Financial Services, Inc., may participate in a joint repurchase agreement transaction. Aggregate cash balances are invested in one or more large repurchase agreements, whose underlying securities are obligations of the U.S. government and/or its agencies. The Fund's custodian bank receives delivery of the underlying securities for the joint account on the Fund's behalf. The Adviser is responsible for ensuring that the agreement is fully collateralized at all times. 18 Foreign currency translation All assets or liabilities initially expressed in terms of foreign currencies are translated into U.S. dollars based on London currency exchange quotations as of 4:00 P.M., London time, on the date of any determination of the net asset value of the Fund. Transactions affecting statement of operations accounts and net realized gain (loss) on investments are translated at the rates prevailing at the dates of the transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency exchange gains or losses arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates. Investment transactions Investment transactions are recorded as of the date of purchase, sale or maturity. Net realized gains and losses on sales of investments are determined on the identified cost basis. Capital gains realized on some foreign securities are subject to foreign taxes, which are accrued as applicable. Class allocations Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the appropriate net asset value of the respective classes. Distribution and service fees, if any, are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rate(s) applicable to each class. Expenses The majority of expenses are directly identifiable to an individual fund. Expenses that are not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of expense and the relative sizes of the funds. Bank borrowings The Fund is permitted to have bank borrowings for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Fund has entered into a syndicated line of credit agreement with various banks. This agreement enables the Fund to participate, with other funds managed by the Adviser, in an unsecured line of credit with banks, which permits borrowings of up to $250 million, collectively. Interest is charged to each fund based on its borrowing. In addition, a commitment fee is charged to each fund based on the average daily unused portion of the line of credit, and is allocated among the participating funds. The Fund had no borrowing activity under the line of credit during the period ended April 30, 2004. Securities lending The Fund may lend securities to certain qualified brokers who pay the Fund negotiated lender fees. The loans are collateralized at all times with cash or securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of delay of the loaned securities in recovery or even loss of rights in the collateral, should the borrower of the securities fail financially. At April 30, 2004, the Fund loaned securities having a market value of $15,002,168 19 collateralized by cash in the amount of $15,801,211. The cash collateral was invested in a short-term instrument. Securities lending expenses are paid by the Fund to the Adviser. Forward foreign currency exchange contracts The Fund may enter into forward foreign currency exchange contracts as a hedge against the effect of fluctuations in currency exchange rates. A forward foreign currency exchange contract involves an obligation to purchase or sell a specific currency at a future date at a set price. The aggregate principal amounts of the contracts are marked to market daily at the applicable foreign currency exchange rates. Any resulting unrealized gains and losses are included in the determination of the Fund's daily net asset value. The Fund records realized gains and losses at the time the forward foreign currency exchange contracts are closed out. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of the contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. These contracts involve market or credit risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. The Fund may also purchase and sell forward contracts to facilitate the settlement of foreign currency denominated portfolio transactions, under which it intends to take delivery of the foreign currency. Such contracts normally involve no market risk if they are offset by the currency amount of the underlying transactions. The Fund had no open forward foreign currency exchange contracts on April 30, 2004. Federal income taxes The Fund qualifies as a "regulated investment company" by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required. For federal income tax purposes, the Fund has $223,630,898 of a capital loss carryforward available, to the extent provided by regulations, to offset future net realized capital gains. To the extent that such carryforward is used by the Fund, no capital gain distributions will be made. The loss carryforward expires as follows: October 31, 2008 -- $307,599, October 31, 2009 -- $84,312,445, October 31, 2010 -- $87,616,374 and October 31, 2011 - -- $51,394,480. Dividends, interest and distributions Dividend income on investment securities is recorded on the ex-dividend date or, in the case of some foreign securities, on the date thereafter when the Fund identifies the dividend. Interest income on investment securities is recorded on the accrual basis. Foreign income may be subject to foreign withholding taxes, which are accrued as applicable. The Fund records distributions to shareholders from net investment income and net realized gains on the ex-dividend date. Distributions paid by the Fund with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital. Use of estimates The preparation of these financial statements, in accordance with accounting principles generally accepted 20 in the United States of America, incorporates estimates made by management in determining the reported amount of assets, liabilities, revenues and expenses of the Fund. Actual results could differ from these estimates. NOTE B Management fee and transactions with affiliates and others The Fund has an investment management contract with the Adviser. Under the investment management contract, the Fund pays a monthly management fee to the Adviser at an annual rate of 1.00% of the Fund's average daily net asset value. The Adviser has a subadvisory agreement with Mercury Advisors. The Fund is not responsible for payment of the subadvisory fees. The Adviser has agreed to limit the Fund's total expenses, excluding distribution and service fees, to 1.35% of the Fund's average daily net asset value, at least until February 28, 2005. Accordingly, the expense reductions related to total expense limitation amounted to $306,267 for the period ended April 30, 2004. The Adviser reserves the right to terminate this limitation in the future. The Fund has Distribution Plans with John Hancock Funds, LLC ("JH Funds"), a wholly owned subsidiary of the Adviser. The Fund has adopted Distribution Plans with respect to Class A, Class B and Class C, pursuant to Rule 12b-1 under the Investment Company Act of 1940, to reimburse JH Funds for the services it provides as distributor of shares of the Fund. Accordingly, the Fund makes monthly payments to JH Funds at an annual rate not to exceed 0.30% of Class A average daily net asset value and 1.00% of Class B and Class C average daily net asset value. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Fund's 12b-1 payments could occur under certain circumstances. Class A and Class C shares are assessed up-front sales charges. During the period ended April 30, 2004, JH Funds received net up-front sales charges of $87,378 with regard to sales of Class A shares. Of this amount, $13,385 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $48,032 was paid as sales commissions to unrelated broker-dealers and $25,961 was paid as sales commissions to sales personnel of Signator Investors, Inc. ("Signator Investors"), a related broker-dealer. The Adviser's indirect parent, John Hancock Life Insurance Company ("JHLICo"), is the indirect sole shareholder of Signator Investors. During the period ended April 30, 2004, JH Funds received net up-front sales charges of $6,557 with regard to sales of Class C shares. Of this amount, $6,439 was paid as sales commissions to unrelated broker-dealers and $118 was paid as sales commissions to sales personnel of Signator Investors. Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge ("CDSC") at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to JH Funds and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Fund in connection with the sale of Class B and Class C shares. During the period ended April 30, 2004, CDSCs received by JH Funds amounted to $227,782 for Class B shares and $5,714 for Class C shares. 21 The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. ("Signature Services"), an indirect subsidiary of JHLICo. The Fund pays a monthly transfer agent fee at an annual rate of 0.05% of the Fund's average daily net asset value, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses, aggregated and allocated to each class on the basis of its relative net asset value. Signature Services reduced the transfer agent fee for Class A, Class B and Class C shares by $27,196, during the period ended April 30, 2004. Signature Services reserves the right to terminate this limitation in the future. The Fund has an agreement with the Adviser to perform necessary tax, accounting and legal services for the Fund. The compensation for the period was at an annual rate of approximately 0.03% of the average daily net asset value of the Fund. The Fund also paid the Adviser the amount of $138 for certain publishing services, included in the printing fees. Mr. James A. Shepherdson is a director and/or officer of the Adviser and/or its affiliates, as well as Trustee of the Fund. The compensation of unaffiliated Trustees is borne by the Fund. The unaffiliated Trustees may elect to defer, for tax purposes, their receipt of this compensation under the John Hancock Group of Funds Deferred Compen sation Plan. The Fund makes investments into other John Hancock funds, as applicable, to cover its liability for the deferred compensation. Investments to cover the Fund's deferred compensation liability are recorded on the Fund's books as an other asset. The deferred compensation liability and the related other asset are always equal and are marked to market on a periodic basis to reflect any income earned by the investments, as well as any unrealized gains or losses. The Deferred Compensation Plan investments had no impact on the operations of the Fund. NOTE C Fund share transactions This listing illustrates the number of Fund shares sold and repurchased during the last two periods, along with the corresponding dollar value. The Fund has an unlimited number of shares authorized with no par value.
YEAR ENDED 10-31-03 PERIOD ENDED 4-30-041 SHARES AMOUNT SHARES AMOUNT CLASS A SHARES Sold 1,904,610 $9,337,076 780,734 $4,501,395 Repurchased (3,866,431) (18,250,013) (1,893,267) (10,958,613) Net decrease (1,961,821) ($8,912,937) (1,112,533) ($6,457,218) CLASS B SHARES Sold 1,542,219 $7,313,411 610,100 $3,438,418 Repurchased (5,376,766) (25,094,848) (2,239,986) (12,649,025) Net decrease (3,834,547) ($17,781,437) (1,629,886) ($9,210,607) CLASS C SHARES Sold 518,564 $2,468,614 237,744 $1,346,625 Repurchased (2,399,620) (11,186,169) (1,196,116) (6,778,246) Net decrease (1,881,056) ($8,717,555) (958,372) ($5,431,621) NET DECREASE (7,677,424) ($35,411,929) (3,700,791) ($21,099,446) 1 Semiannual period from 11-1-03 through 4-30-04. Unaudited.
22 NOTE D Investment transactions Purchases and proceeds from sales or maturities of securities, other than short-term securities and obligations of the U.S. government, during the period ended April 30, 2004, aggregated $63,766,435 and $83,552,546, respectively. The cost of investments owned on April 30, 2004, including short-term investments, for federal income tax purposes, was $193,283,608. Gross unrealized appreciation and depreciation of investments aggregated $28,925,796 and $7,059,969, respectively, resulting in net unrealized appreciation of $21,865,827. The difference between book basis and tax basis net unrealized appreciation of investments is attributable primarily to the tax deferral of losses on certain sales of securities. 23 OUR FAMILY OF FUNDS - ---------------------------------------------------------- Equity Balanced Fund Classic Value Fund Core Equity Fund Focused Equity Fund Growth Trends Fund International Fund Large Cap Equity Fund Large Cap Growth Fund Large Cap Select Fund Mid Cap Growth Fund Multi Cap Growth Fund Small Cap Equity Fund Small Cap Growth Fund Sovereign Investors Fund U.S. Global Leaders Growth Fund - ---------------------------------------------------------- Sector Biotechnology Fund Financial Industries Fund Health Sciences Fund Real Estate Fund Regional Bank Fund Technology Fund - ---------------------------------------------------------- Income Bond Fund Government Income Fund High Income Fund High Yield Fund Investment Grade Bond Fund Strategic Income Fund - ---------------------------------------------------------- Tax-Free Income California Tax-Free Income Fund High Yield Municipal Bond Fund Massachusetts Tax-Free Income Fund New York Tax-Free Income Fund Tax-Free Bond Fund - ---------------------------------------------------------- Money Market Money Market Fund U.S. Government Cash Reserve For more complete information on any John Hancock fund and a prospectus, which includes charges and expenses, call your financial professional, or John Hancock Funds at 1-800-225-5291. Please read the prospectus carefully before investing or sending money. 24 FOR YOUR INFORMATION TRUSTEES Dennis S. Aronowitz Richard P. Chapman, Jr. William J. Cosgrove Richard A. Farrell William F. Glavin* Dr. John A. Moore* Patti McGill Peterson* John W. Pratt James A. Shepherdson *Members of the Audit Committee OFFICERS James A. Shepherdson President and Chief Executive Officer Richard A. Brown Senior Vice President and Chief Financial Officer Susan S. Newton Senior Vice President and Secretary William H. King Vice President and Treasurer INVESTMENT ADVISER John Hancock Advisers, LLC 101 Huntington Avenue Boston, Massachusetts 02199-7603 SUB-INVESTMENT ADVISER Mercury Advisors 800 Scudders Mill Road Plainsboro, New Jersey 08536 PRINCIPAL DISTRIBUTOR John Hancock Funds, LLC 101 Huntington Avenue Boston, Massachusetts 02199-7603 CUSTODIAN The Bank of New York One Wall Street New York, New York 10286 TRANSFER AGENT John Hancock Signature Services, Inc. 1 John Hancock Way, Suite 1000 Boston, Massachusetts 02217-1000 LEGAL COUNSEL Hale and Dorr LLP 60 State Street Boston, Massachusetts 02109-1803 HOW TO CONTACT US On the Internet www.jhfunds.com By regular mail John Hancock Signature Services, Inc. 1 John Hancock Way, Suite 1000 Boston, MA 02217-1000 By express mail John Hancock Signature Services, Inc. Attn: Mutual Fund Image Operations 529 Main Street Charlestown, MA 02129 Customer service representatives 1-800-225-5291 24-hour automated information 1-800-338-8080 TDD line 1-800-554-6713 The Fund's voting policies and procedures are available without charge, upon request: By phone 1-800-225-5291 On the Fund's Web site www.jhfunds.com/proxy On the SEC's Web site www.sec.gov 25 [A 1 1/2" x 1/2" John Hancock (Signature) logo in upper left hand corner. A tag line below reads "JOHN HANCOCK FUNDS."] 1-800-225-5291 1-800-554-6713 (TDD) 1-800-338-8080 EASI-Line www.jhfunds.com Now available: electronic delivery www.jhancock.com/funds/edelivery This report is for the information of the shareholders of the John Hancock Growth Trends Fund. 460SA 4/04 6/04 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. (a) The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds - Administration Committee Charter". ITEM 10. CONTROLS AND PROCEDURES. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached. (b)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference. (c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached "John Hancock Funds - Administration Committee Charter". (c)(2) Contact person at the registrant. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. John Hancock Equity Trust By: - --------------------------------- James A. Shepherdson President and Chief Executive Officer Date: June 24, 2004 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: - --------------------------------- James A. Shepherdson President and Chief Executive Officer Date: June 24, 2004 By: - --------------------------------- Richard A. Brown Senior Vice President and Chief Financial Officer Date: June 24, 2004 EX-99.CERT 2 jheexnn2.txt CERTIFICATION CERTIFICATION I, James A. Shepherdson, certify that: 1. I have reviewed this report on Form N-CSR of the John Hancock Equity Trust (the registrant); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) 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) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 24, 2004 - --------------------------------- James A. Shepherdson President and Chief Executive Officer CERTIFICATION I, Richard A. Brown, certify that: 1. I have reviewed this report on Form N-CSR of the John Hancock Equity Trust (the registrant); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) 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) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: June 24, 2004 - --------------------------------- Richard A. Brown Senior Vice President and Chief Financial Officer EX-99.906 CERT 3 jheexnos3.txt CERTIFICATION 906 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 In connection with the attached Report of John Hancock Equity Trust (the registrant) on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the registrant does hereby certify that, to the best of such officer's knowledge: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report. - --------------------------- James A. Shepherdson President and Chief Executive Officer Dated: June 24, 2004 - --------------------------- Richard A. Brown Senior Vice President and Chief Financial Officer Dated: June 24, 2004 A signed original of this written statement, required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request. EX-99 4 jheexacc4.txt ADMINISTRATION COMMITTEE CHARTER JOHN HANCOCK FUNDS ADMINISTRATION COMMITTEE CHARTER A. Composition. The Administration Committee shall be composed of all Trustees who are both "independent" as defined in the rules of the New York Stock Exchange and are not "interested persons" as defined in the Investment Company Act of 1940 of John Hancock Adviser LLC or of the Trust (the "Independent Trustees"). B. Overview. The overall charter of the Administration Committee is: (i) to review and comment on complex-wide matters to facilitate uniformity among the funds; (ii) to select and nominate Independent Trustees to be added to the Board; (iii) to oversee liaison between management and the Independent Trustees; (iv) to review the performance of the Independent Trustees as appropriate; (v) to review matters relating to the Independent Trustees, such as compensation, retirement arrangements, Committee assignments and the like; (vi) to consider matters of general corporate governance applicable to the Independent Trustees, and (vii) when appropriate, to oversee the assignment of tasks to other Committees. C. Nomination of Independent Trustees 1. Selection of Trustee Nominees. Except where the funds are legally required to provide third parties with the ability to nominate trustees, the Administration Committee shall be responsible for (i) identifying individuals qualified to become Independent Trustees and (ii) recommending to the Board of Trustees the persons to be nominated for election as Independent Trustees at any meeting of stockholders and the persons to be elected by the Board to fill any vacancies on the Board by the death, resignation or removal of an Independent Trustee. Persons to serve as Trustees who are not Independent Trustees shall be nominated by the Board. 2. Criteria for Selecting Trustees. The Administration Committee shall use the criteria and the principles set forth on Annex A, as revised from time to time, to guide its trustee selection process. The Administration Committee shall periodically review the requisite skills and criteria for Independent Trustees as well as the composition of the Board as a whole. The Committee shall adopt, and periodically review and revise as it deems appropriate, procedures regarding trustee candidates recommended by shareholders. The current policy is attached as Annex A. D. Other Specific Responsibilities. The Administration Committee shall have the following duties and powers, to be exercised at such times and in such manner as the Committee shall deem necessary or appropriate: 1. To consider the allocation of activities among the various Committees and the full Board, to suggest to the Committees the degree of detail in their reports to the full Board, and to establish membership and rotation policies for Committees. 2. To consider the number of funds under supervision by the Independent Trustees and the ability of the Independent Trustees to discharge successfully their fiduciary duties and to pursue self-education in mutual fund matters. 3. To propose the amount of compensation to be paid by the funds to the Independent Trustees and to address compensation-related matters, such as expense reimbursement policies. 4. To evaluate, from time to time, the time, energy, expertise, knowledge, judgment and personal skills which Independent Trustees brings to the Board and to consider retirement policies for the Independent Trustees. 5. To participate in the development of agendas for Board and Committee meetings. 6. To consider, evaluate and make recommendations regarding the type and amount of fidelity bond, and director and officer and/or errors and omission insurance coverage, for the funds, the Board and the Independent Trustees, as applicable. 7. To consider, evaluate and make recommendations and necessary findings regarding independent legal counsel and any other advisers, experts or consultants, that may be engaged from time to time, other than as may be engaged directly by another Committee. 8. To evaluate feedback from shareholders as appropriate. Annex A includes procedures for shareholders to communicate with the members of the Administration Committee. E. Additional Responsibilities. The Committee will also perform other tasks assigned to it from time to time by full Board, and will report findings and recommendations to the full Board, as appropriate. F. Governance. One member of the Committee shall be appointed as chair. The chair shall be responsible for leadership of the Committee, including scheduling meetings or reviewing and approving the schedule for them, preparing agendas or reviewing and approving them before meetings, presiding over meetings, and making reports to the full Board, as appropriate. G. Miscellaneous. The Committee shall meet as often as it deems appropriate, with or without management, as circumstances require. The Committee shall have the resources and authority appropriate to discharge its responsibilities, including the authority to retain special counsel and other advisers, experts or consultants, at the funds' expense, as it determines necessary to carry out its duties. The Committee shall have direct access to such officers of and service providers to the funds as it deems desirable. H. Review. The Committee shall review this Charter periodically and recommend such changes to the full Board as it deems desirable. ANNEX A General Criteria 1. Nominees should have a reputation for integrity, honesty and adherence to high ethical standards. 2. Nominees should have demonstrated business acumen, experience and ability to exercise sound judgments in matters that relate to the current and long-term objectives of the Fund(s) and should be willing and able to contribute positively to the decision-making process of the Fund(s). 3. Nominees should have a commitment to understand the Fund(s), and the responsibilities of a Trustee/Director of an investment company and to regularly attend and participate in meetings of the Board and its committees. 4. Nominees should have the ability to understand the sometimes conflicting interests of the various constituencies of the Fund, including shareholders and the management company, and to act in the interests of all shareholders. 5. Nominees should not have, nor appear to have, a conflict of interest that would impair the nominee's ability to represent the interests of all the shareholders and to fulfill the responsibilities of a director /trustee. 6. Nominees shall not be discriminated against on the basis of race, religion, national origin, sex, sexual orientation, disability or any other basis proscribed by law. The value of diversity on the Board should be considered. Application of Criteria to Existing The renomination of existing Trustees should not be viewed as automatic, but should be based on continuing qualification under the criteria set forth above. In addition, the Administrative Committee shall consider the existing trustees' performance on the Board and any committee. Review of Shareholder Nominations Any shareholder recommendation must be submitted in compliance with all of the pertinent provisions of Rule 14a-8 under the Securities Exchange Act of 1934 to be considered by the Administration Committee. In evaluating a nominee recommended by a shareholder, the Administration Committee, in addition to the criteria discussed above, may consider the objectives of the shareholder in submitting that nomination and whether such objectives are consistent with the interests of all shareholders. If the Board determines to include a shareholder's candidate among the slate of nominees, the candidate's name will be placed on the Fund's proxy card. If the Administration Committee or the Board determines not to include such candidate among the Board's designated nominees and the shareholder has satisfied the requirements of Rule 14a-8, the shareholder's candidate will be treated as a nominee of the shareholder who originally nominated the candidate. In that case, the candidate will not be named on the proxy card dis tributed with the Fund's proxy statement. As long as an existing Independent Trustee continues, in the opinion of the Administration Committee, to satisfy the criteria listed above, the Committee generally would favor the re-nomination of an existing Trustee rather than a new candidate. Consequently, while the Administration Committee will consider nominees recommended by shareholders to serve as trustees, the Administration Committee may only act upon such recommendations if there is a vacancy on the Board or the Administration Committee determines that the selection of a new or additional Independent Trustee is in the best interests of the Fund. In the event that a vacancy arises or a change in Board membership is determined to be advisable, the Administration Committee will, in addition to any shareholder recommendations, consider candidates identified by other means, including candidates proposed by members of the Administration Committee. While it has not done so in the past, the Administration Committee may retain a consultant to assist the Committee in a search for a qualified candidate Communications from shareholders Shareholders may communicate with the members of the Board as a group or individually. Any such communication should be sent to the Board or an individual Trustee c/o the secretary of the Fund at the address on the notice of this meeting. The Secretary may determine not to forward any letter to the members of the Board that does not relate to the business of the Fund. -----END PRIVACY-ENHANCED MESSAGE-----