N-CSRS 1 a_equitytrust.htm JOHN HANCOCK EQUITY TRUST b_equitytrustcvr1.htm
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
  
FORM N-CSR 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED 
MANAGEMENT INVESTMENT COMPANIES 
 
Investment Company Act file number 811- 4079 
  
John Hancock Equity Trust 
(Exact name of registrant as specified in charter) 
 
601 Congress Street, Boston, Massachusetts 02210 
(Address of principal executive offices) (Zip code) 
 
Alfred P. Ouellette
Senior Counsel and Assistant Secretary
 
601 Congress Street 
 
Boston, Massachusetts 02210 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: 617-663-4324 
 
Date of fiscal year end: October 31 
 
Date of reporting period: April 30, 2008 

ITEM 1. REPORT TO SHAREHOLDERS.


A look at performance

For the periods ended April 30, 2008

    Average annual returns      Cumulative total returns     
    with maximum sales charge (POP)    with maximum sales charge (POP)     
  Inception        Since          Since 
Class  date  1-year  5-year  10-year  inception  6 months  1-year  5-year  10-year  inception 
A  9-22-00  –16.06%  5.71%  —  –6.26%  –20.52%  –16.06%  32.03%  —  –38.83% 
B  9-22-00  –16.74  5.72  —  –6.29  –20.83  –16.74  32.07  —  –39.00 
C  9-22-00  –13.23  6.04  —  –6.29  –17.50  –13.23  34.07  —  –39.00 

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective July 15, 2004. The Class B shares’ CDSC declines annually between years 1 to 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 expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until February 28, 2009. The net expenses are as follows Class A — 1.52%, Class B — 2.22%, Class C — 2.22% . Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.93%, Class B — 2.63%, Class C — 2.63% .

The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, the Fund’s current performance may be higher or lower than the performance shown. For performance data current to the most recent month end, please call 1-800-225-5291 or visit the Fund’s Web site at www.jhfunds.com.

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.

6  Growth Trends Fund | Semiannual report 

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Growth Trends Fund Class A shares for the period indicated. For comparison, we’ve shown the same investment in the Standard & Poor’s 500 Index.


      With maximum   
Class  Period beginning  Without sales charge  sales charge  Index 
B2  9-22-00  $6,100  $6,100  $10,897 
C2  9-22-00  6,100  6,100  10,897 

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, 2008. The Class C shares investment with maximum sales charge has been adjusted to reflect the elimination of the front-end sales charge effective July 15, 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, which would have resulted in lower values if they did.

1 NAV represents net asset value and POP represents public offering price.

2 No contingent deferred sales charge applicable.

Semiannual report | Growth Trends Fund  7 

Your expenses

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

Understanding fund expenses

As a shareholder of the Fund, you incur two types of costs:

■ Transaction costs which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.

■ Ongoing operating expenses including management fees, distribution and service fees (if applicable), and other fund expenses.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

This example is intended to provide information about your fund’s actual ongoing operating expenses, and is based on your fund’s actual return. It assumes an account value of $1,000.00 on November 1, 2007, with the same investment held until April 30, 2008.

  Account value  Ending value  Expenses paid during 
  on 11-1-07  on 4-30-08  period ended 4-30-081 
Class A  $1,000.00  $836.20  $7.08 
Class B  1,000.00  833.30  10.26 
Class C  1,000.00  833.30  10.26 

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at April 30, 2008, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:


 

8  Growth Trends Fund | Semiannual report 

Hypothetical example for comparison purposes

This table allows you to compare your fund’s ongoing operating expenses with those of any other fund. It provides an example of the Fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not your fund’s actual return). It assumes an account value of $1,000.00 on November 1, 2007, with the same investment held until April 30, 2008. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

  Account value  Ending value  Expenses paid during 
  on 11-1-07  on 4-30-08  period ended 4-30-081 
Class A  $1,000.00  $1,017.16  $7.77 
Class B  1,000.00  1,013.67  11.26 
Class C  1,000.00  1,013.67  11.26 

Remember, these examples do not include any transaction costs, such as sales charges; therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.

1 Expenses are equal to the Fund’s annualized expense ratio of 1.55%, 2.25% and 2.25% for Class A, Class B and Class C, respectively, multiplied by the average account value over the period, multiplied by number of days in most recent fiscal half-year/366 (to reflect the one-half year period).

Semiannual report | Growth Trends Fund  9 

Portfolio summary

Top 10 holdings1       
Microsoft Corp.  5.2%  Apple, Inc.  2.6% 
 
American Oriental Bioengineering, Inc.  4.0%  Bank of America Corp.  2.5% 
 
International Business Machines Corp.  2.8%  Intel Corp.  2.4% 
 
American International Group, Inc.  2.6%  Johnson & Johnson  2.0% 
 
State Street Corp.  2.6%  Bayer AG  2.0% 
 

Sector distribution1       
Information technology  34%  Energy  1% 
 
Financials  30%  Telecommunication services  1% 
 
Health care  27%  Other  7% 

 


 


 

1 As a percentage of net assets on April 30, 2008.

10  Growth Trends Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Fund’s investments

Securities owned by the Fund on 4-30-08 (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 93.29%    $62,880,096 
(Cost $60,277,880)     
 
Application Software 2.92%    1,971,094 
Amdocs Ltd. (I)  13,300  417,354 
Intuit, Inc. (I)  10,000  269,700 
NetScout Systems, Inc. (I)  51,000  510,000 
Salesforce.com, Inc. (I)  4,500  300,285 
Synopsys, Inc. (I)  20,500  473,755 
  
Asset Management & Custody Banks 5.51%    3,717,274 
Bank of New York Mellon Corp.  23,840  1,037,755 
BlackRock, Inc. (Class A)  1,742  351,518 
State Street Corp.  24,550  1,771,037 
T. Rowe Price Group, Inc.  9,511  556,964 
 
Biotechnology 9.94%    6,699,632 
American Oriental Bioengineering, Inc. (I)  277,305  2,667,674 
Amgen, Inc. (I)  10,789  451,735 
Biogen Idec, Inc. (I)  7,312  443,765 
Genentech, Inc. (I)  12,417  846,839 
Genzyme Corp. (I)  6,346  446,441 
Gilead Sciences, Inc. (I)  17,785  920,552 
QIAGEN N.V. (I)  21,650  480,846 
Thermo Fisher Scientific, Inc. (I)  7,634  441,780 
 
Communications Equipment 3.33%    2,244,287 
Cisco Systems, Inc. (I)  48,102  1,233,335 
Harris Corp.  7,200  389,016 
QUALCOMM, Inc.  14,400  621,936 
 
Computer Hardware 7.71%    5,194,935 
Apple, Inc. (I)  10,100  1,756,895 
Dell, Inc. (I)  23,400  435,942 
Hewlett-Packard Co.  23,365  1,082,968 
International Business Machines Corp.  15,900  1,919,130 
 
Computer Storage & Peripherals 1.11%    747,986 
EMC Corp.  29,752  458,181 
Seagate Technology  15,358  289,805 

See notes to financial statements

Semiannual report | Growth Trends Fund  11 

F I N A N C I A L   S T A T E M E N T S

Issuer  Shares  Value 
 
Consumer Finance 2.48%    $1,671,588 
American Express Co.  19,612  941,768 
Discover Financial Services (I)  40,078  729,820 
 
Data Processing & Outsourced Services 0.67%    454,245 
Wright Express Corp. (I)  13,765  454,245 
 
Diversified Banks 5.03%    3,387,419 
Bank of America Corp.  45,685  1,715,015 
Kookmin Bank ADR  6,587  459,443 
Wachovia Corp.  41,611  1,212,961 
 
Diversified Chemicals 1.98%    1,334,024 
Bayer AG  15,795  1,334,024 
 
Diversified Financial Services 1.88%    1,265,289 
Citigroup, Inc.  33,183  838,534 
JPMorgan Chase & Co.  3,900  185,835 
Visa, Inc. (Class A) (I)  2,887  240,920 
 
Drug Retail 0.35%    236,165 
CVS Caremark Corp.  5,850  236,165 
 
Health Care Distributors 1.21%    813,291 
AmerisourceBergen Corp.  11,281  457,445 
Cardinal Health, Inc.  6,834  355,846 
 
Health Care Equipment 2.44%    1,645,416 
Covidien Ltd.  5,188  242,228 
Hologic, Inc. (I)  17,892  522,267 
Medtronic, Inc.  8,673  422,202 
Stryker Corp.  3,668  237,796 
Zimmer Holdings, Inc. (I)  2,979  220,923 
 
Insurance Brokers 0.88%    593,832 
Aon Corp.  6,250  283,688 
Willis Group Holdings Ltd.  8,925  310,144 
 
Integrated Oil & Gas 1.56%    1,052,875 
Sasol Ltd. ADR  9,382  531,490 
Suncor Energy, Inc.  4,627  521,385 
 
Integrated Telecommunication Services 0.37%    248,696 
Verizon Communications, Inc.  6,463  248,696 
 
Internet Software & Services 3.15%    2,126,109 
eBay, Inc. (I)  24,500  766,605 
Google, Inc. (Class A) (I)  1,400  804,006 
Shanda Interactive Entertainment Ltd. ADR (I)  16,200  555,498 
 
Investment Banking & Brokerage 1.71%    1,150,682 
Charles Schwab Corp.  21,402  462,283 
Goldman Sachs Group, Inc.  599  114,631 
Lazard Ltd. (Class A)  9,600  375,744 
MF Global Ltd. (I)  15,036  198,024 

See notes to financial statements

12  Growth Trends Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Issuer  Shares  Value 
 
IT Consulting & Other Services 0.59%    $397,413 
CA, Inc.  17,950  397,413 
 
Life & Health Insurance 3.13%    2,110,609 
Aflac, Inc.  17,650  1,176,726 
Principal Financial Group, Inc.  7,880  422,841 
Prudential Financial, Inc.  6,750  511,042 
 
Managed Health Care 3.64%    2,452,486 
Aetna, Inc.  18,769  818,328 
Aveta, Inc. (B)(I)(S)  97,210  534,655 
UnitedHealth Group, Inc.  14,409  470,166 
WellPoint, Inc. (I)  12,650  629,337 
 
Multi-Line Insurance 3.90%    2,626,962 
American International Group, Inc.  38,650  1,785,630 
Hartford Financial Services Group, Inc.  5,900  420,493 
MetLife, Inc.  6,916  420,839 
 
Pharmaceuticals 7.68%    5,180,021 
Abbott Laboratories  12,906  680,792 
Cephalon, Inc. (I)  7,386  460,960 
Dr. Reddy’s Laboratories Ltd. ADR  23,834  363,945 
Johnson & Johnson  19,901  1,335,158 
Merck & Co., Inc.  5,362  203,970 
OSI Pharmaceuticals, Inc. (I)  13,967  483,957 
Pfizer, Inc.  14,129  284,134 
Roche Holding AG  2,260  373,976 
Stada Arzneimittel AG  7,166  483,212 
Tongjitang Chinese Medicines Co. ADR (I)  62,185  509,917 
 
Property & Casualty Insurance 1.24%    832,519 
ACE Ltd.  10,882  656,076 
Progressive Corp.  9,700  176,443 
 
Reinsurance 2.65%    1,787,099 
Berkshire Hathaway, Inc. (Class B) (I)  100  445,700 
PartnerRe Ltd.  14,350  1,061,613 
Platinum Underwriters Holdings Ltd.  7,800  279,786 
 
Semiconductor Equipment 0.24%    160,050 
Mattson Technology, Inc. (I)  33,000  160,050 
 
Semiconductors 2.72%    1,836,390 
Fairchild Semiconductor International, Inc. (I)  18,773  244,800 
Intel Corp. (I)  71,500  1,591,590 
 
Specialized Finance 1.30%    876,914 
Interactive Brokers Group, Inc. (Class A) (I)  3,366  106,265 
Nasdaq Stock Market, Inc. (I)  13,412  488,867 
Nymex Holdings, Inc. (I)  3,043  281,782 

See notes to financial statements

Semiannual report | Growth Trends Fund  13 

F I N A N C I A L   S T A T E M E N T S

Issuer  Shares  Value 
 
Systems Software 9.39%    $6,328,060 
Adobe Systems, Inc. (I)  14,350  535,112 
BMC Software, Inc. (I)  $8,438  293,305 
McAfee, Inc. (I)  7,000  232,750 
Microsoft Corp.  122,050  3,480,866 
Oracle Corp. (I)  62,600  1,305,210 
Symantec Corp. (I)  27,922  480,817 
 
Technology Distributors 1.84%    1,238,168 
Arrow Electronics, Inc. (I)  11,450  311,555 
Ingram Micro, Inc. (Class A) (I)  23,453  398,936 
Tech Data Corp. (I)  15,700  527,677 
 
Wireless Telecommunication Services 0.74%    498,566 
NII Holdings, Inc. (I)  10,900  498,566 

  Interest  Par value   
Issuer, description, maturity date  rate  (000)  Value 
Short-term investments 7.97%      $5,373,000 
(Cost $5,373,000)       

Joint Repurchase Agreement 7.97%      5,373,000 
Joint Repurchase Agreement transaction with Bank of America Corp.       
  dated 4-30-08 at 1.910% to be repurchased at $5,373,285       
  on 5-1-08, collateralized by $4,219,810 U.S. Treasury       
  Inflation Indexed Bond, 3.000%, due 7-15-12       
  (valued at $5,480,268, including interest)  1.910%  $5,373  5,373,000 
 
Total investments (Cost $65,650,880)† 101.26%      $68,253,096 
 
Other assets and liabilities, net (1.26%)      ($846,517) 
 
Total net assets 100.00%      $67,406,579 

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

ADR American Depositary Receipt

(B) This security is fair valued in good faith under procedures established by the Board of Trustees. This security amounted to $534,655 or 0.79% of the Fund’s net assets as of April 30, 2008.

(I) Non-income-producing security.

(S) This security is exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers. In transactions exempt from registration, Rule 144A securities amounted to $534,655 or 0.79% of the Fund’s net assets as of April 30, 2008.

† The cost of investments owned on April 30, 2008, including short-term investments, for Federal income tax purposes was $65,864,167. Gross unrealized appreciation and depreciation of investments aggregated $8,485,961 and $6,097,032, respectively, resulting in net unrealized appreciation of $2,388,929.

See notes to financial statements

14  Growth Trends Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Financial statements

Statement of assets and liabilities 4-30-08 (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 $65,650,880)  $68,253,096 
Cash  1,726 
Receivable for investments sold  105,511 
Receivable for shares sold  2,876 
Dividends and interest receivable  34,323 
Receivable from affiliates  11,125 
Total assets  68,408,657 
 
Liabilities   
Payable for investments purchased  573,323 
Payable for shares repurchased  171,992 
Payable to affiliates   
Management fees  38,545 
Distribution and service fees  39,302 
Other  104,014 
Other payables and accrued expenses  74,902 
 
Total liabilities  1,002,078 
 
Net assets   
Capital paid-in  245,452,180 
Accumulated net realized loss on investments and foreign currency transactions  (180,475,892) 
Net unrealized appreciation of investments and translation of assets   
and liabilities in foreign currencies  2,602,912 
Accumulated net investment loss  (172,621) 
 
Net assets  $67,406,579 
 
Net asset value per share   
Based on net asset values and shares outstanding — the Fund has an   
unlimited number of shares authorized with no par value   
Class A ($25,691,462 ÷ 3,993,763 shares)  $6.43 
Class B ($30,332,196 ÷ 4,970,563 shares)1  $6.10 
Class C ($11,382,921 ÷ 1,865,370 shares)1  $6.10 
 
Maximum offering price per share   
Class A ($6.43 ÷ 95%)2  $6.77 

1 Redemption price is equal to net asset value less any applicable contingent deferred sales charge.

2 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

Semiannual report | Growth Trends Fund  15 

F I N A N C I A L   S T A T E M E N T S

Statement of operations For the period ended 4-30-08 (unaudited)1

This Statement of Operations summarizes the Fund’s investment income earned and expenses incurred in operating the Fund. It also shows net gains (losses) for the period stated.

Investment income   
Dividends (net of foreign withholding taxes of $9,194)  $464,896 
Interest  77,581 
Securities lending  18,374 
Income from affiliated issuers  8,051 
 
Total investment income  568,902 
 
Expenses   
Investment management fees (Note 3)  372,706 
Distribution and service fees (Note 3)  274,759 
Transfer agent fees (Note 3)  173,042 
Accounting and legal services fees (Note 3)  3,727 
Printing fees  24,310 
Custodian fees  23,600 
Blue sky fees  17,658 
Professional fees  11,020 
Trustees’ fees  2,339 
Miscellaneous  8,077 
 
Total expenses  911,238 
Less expense reductions (Note 3)  (173,041) 
 
Net expenses  738,197 
 
Net investment loss  (169,295) 
 
Realized and unrealized gain (loss)   
 
Net realized gain on   
Investments  1,618,485 
Foreign currency transactions  569 
   1,619,054 
Change in net unrealized appreciation (depreciation) of   
Investments  (16,008,503) 
Translation of assets and liabilities in foreign currencies  (53) 
   (16,008,556) 
Net realized and unrealized loss  (14,389,502) 
 
Decrease in net assets from operations  ($14,558,797) 

1 Semiannual period from 11-01-07 to 4-30-08.

See notes to financial statements

16  Growth Trends Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Statement of 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 difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Fund share transactions.

  Year  Period 
  ended  ended 
  10-31-07  4-30-081 
 
Increase (decrease) in net assets     
From operations     
Net investment loss  ($760,504)  ($169,295) 
Net realized gain  14,115,578  1,619,054 
Change in net unrealized depreciation  (3,305,325)  (16,008,556) 
 
Increase (decrease) in net assets resulting from operations  10,049,749  (14,558,797) 
 
From Fund share transactions (Note 4)  (30,715,940)  (8,704,016) 
 
Total decrease  (20,666,191)  (23,262,813) 
 
Net assets     
Beginning of period  111,335,583  90,669,392 
 
End of period2  $90,669,392  $67,406,579 

1 Semiannual period from 11-01-07 to 4-30-08. Unaudited.

2 Includes accumulated net investment loss of $3,326 and $172,621, respectively.

See notes to financial statements

Semiannual report | Growth Trends Fund  17 

F I N A N C I A L   S T A T E M E N T S

Financial highlights

The Financial Highlights show how the Fund’s net asset value for a share has changed since the end of the previous period.

CLASS A SHARES

Period ended  10-31-03  10-31-04  10-31-05  10-31-06  10-31-07  4-30-081 
 
Per share operating performance             
Net asset value, beginning of period  $4.49  $5.51  $5.67  $6.27  $6.91  $7.69 
Net investment income (loss)2  (0.03)  (0.04)  —3,4  (0.03)  (0.02)  —3 
Net realized and unrealized gain             
  (loss) on investments  1.05  0.20  0.60  0.67  0.80  (1.26) 
Total from investment operations  1.02  0.16  0.60  0.64  0.78  (1.26) 
Net asset value, end of period  $5.51  $5.67  $6.27  $6.91  $7.69  $6.43 
Total return (%)5,6  22.72  2.90  10.58  10.21  11.29  (16.38)7 
 
Ratios and supplemental data             
Net assets, end of period             
  (in millions)  $69  $58  $46  $40  $34  $26 
  Expenses before reductions  2.02  1.86  1.95  2.00  1.93  2.008 
  Expenses net of fee waivers, if any  1.65  1.65  1.65  1.65  1.52  1.558 
  Expenses net of all fee waivers             
    and credits  1.65  1.65  1.65  1.65  1.52  1.548 
Net investment income (loss)  (0.64)  (0.62)  0.014  (0.48)  (0.32)  (0.02)8 
Portfolio turnover (%)  76  40  27  70  70  42 

1 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

2 Based on the average of the shares outstanding.

3 Less than $0.01 per share.

4 Net investment income per share and ratio of net investment income to average net assets reflects a special dividend received by the Fund which amounted to $0.04 per share and 0.61% of average net assets.

5 Assumes dividend reinvestment and does not reflect the effect of sales charge.

6 Total returns would have been lower had certain expenses not been reduced during the periods shown.

7 Not annualized.

8 Annualized.

See notes to financial statements

18  Growth Trends Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended  10-31-03  10-31-04  10-31-05  10-31-06  10-31-07  4-30-081 
 
Per share operating performance             
Net asset value, beginning of period  $4.42  $5.40  $5.51  $6.06  $6.62  $7.32 
Net investment loss2  (0.06)  (0.07)  (0.04)3  (0.07)  (0.07)  (0.02) 
Net realized and unrealized gain             
  (loss) on investments  1.04  0.18  0.59  0.63  0.77  (1.20) 
Total from investment operations  0.98  0.11  0.55  0.56  0.70  (1.22) 
Net asset value, end of period  $5.40  $5.51  $6.06  $6.62  $7.32  $6.10 
Total return (%)4,5  22.17  2.04  9.98  9.24  10.57  (16.67)6 
 
Ratios and supplemental data             
Net assets, end of period             
  (in millions)  $104  $85  $66  $53  $41  $30 
  Expenses before reductions  2.72  2.56  2.65  2.70  2.63  2.707 
  Expenses net of fee waivers, if any  2.35  2.35  2.35  2.35  2.22  2.257 
  Expenses net of all fee waivers             
    and credits  2.35  2.35  2.35  2.35  2.22  2.247 
Net investment loss  (1.34)  (1.32)  (0.67)3  (1.18)  (1.02)  (0.72)7 
Portfolio turnover (%)  76  40  27  70  70  42 

1 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

2 Based on the average of the shares outstanding.

3 Net investment loss per share and ratio of net investment loss to average net assets reflects a special dividend received by the Fund which amounted to $0.04 per share and 0.62% of average net assets.

4 Assumes dividend reinvestment and does not reflect the effect of sales charge.

5 Total returns would have been lower had certain expenses not been reduced during the periods shown.

6 Not annualized.

7 Annualized.

See notes to financial statements

Semiannual report | Growth Trends Fund  19 

F I N A N C I A L   S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended  10-31-03  10-31-04  10-31-05  10-31-06  10-31-07  4-30-081 
 
Per share operating performance             
Net asset value, beginning of period  $4.42  $5.40  $5.51  $6.06  $6.62  $7.32 
Net investment loss2  (0.06)  (0.07)  (0.04)3  (0.07)  (0.07)  (0.02) 
Net realized and unrealized gain             
  (loss) on investments  1.04  0.18  0.59  0.63  0.77  (1.20) 
Total from investment operations  0.98  0.11  0.55  0.56  0.70  (1.22) 
Net asset value, end of period  $5.40  $5.51  $6.06  $6.62  $7.32  $6.10 
Total return (%)4,5  22.17  2.04  9.98  9.24  10.57  (16.67)6 
 
Ratios and supplemental data             
Net assets, end of period             
  (in millions)  $41  $31  $23  $19  $15  $11 
  Expenses before reductions  2.72  2.56  2.65  2.70  2.63  2.707 
  Expenses net of fee waivers, if any  2.35  2.35  2.35  2.35  2.22  2.257 
  Expenses net of all fee waivers             
    and credits  2.35  2.35  2.35  2.35  2.22  2.247 
  Net investment loss  (1.34)  (1.32)  (0.66)3  (1.17)  (1.02)  (0.72)7 
Portfolio turnover (%)  76  40  27  70  70  42 

1 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

2 Based on the average of the shares outstanding.

3 Net investment loss per share and ratio of net investment loss to average net assets reflects a special dividend received by the Fund which amounted to $0.04 per share and 0.62% of average net assets.

4 Assumes dividend reinvestment and does not reflect the effect of sales charge.

5 Total returns would have been lower had certain expenses not been reduced during the periods shown.

6 Not annualized.

7 Annualized.

See notes to financial statements

20  Growth Trends Fund | Semiannual report 

Notes to financial statements (unaudited)

Note 1
Organization

John Hancock Growth Trends Fund (the Fund) is a diversified series of John Hancock Equity Trust (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). 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 (SEC) 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. Class B shares will convert to Class A shares eight years after purchase.

Note 2
Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Security valuation

The net asset value of Class A, Class B and Class C shares of the Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading.

Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

Joint repurchase agreement

Pursuant to an exemptive order issued by the SEC, 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., a subsidiary

Semiannual report | Growth Trends Fund  21 

of Manulife Financial Corporation (MFC), 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.

Foreign currency translation

The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.

Investment transactions

Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment security transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis.

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, and transfer agent fees for Class A, Class B and Class C shares 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.

Guarantees and indemnifications

Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

Expenses

The majority of expenses are directly identifiable to an individual fund. Trust 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 size 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 line of credit agreement with The Bank of New York Mellon (BNYM), the Swing Line Lender and Administrative Agent. This agreement enables the Fund to participate, with other funds managed by the Adviser, in an unsecured line of credit with BNYM, which permits borrowings of up to $150 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, 2008.

22  Growth Trends Fund | Semiannual report 

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 $181,884,356 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 carryforwards expire as follows: October 31, 2009 — $42,873,502, October 31, 2010 — $87,616,374 and October 31, 2011 — $51,394,480.

The Fund has adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109 (FIN 48), at the beginning of the Fund’s fiscal year. FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not have a material impact on the Fund’s financial statements. Each of the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

New accounting pronouncements

In September 2006, FASB Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. As of April 30, 2008, management does not believe the adoption of FAS 157 will have a material impact on the amount reported in the financial statements.

In March 2008, FASB No. 161 (FAS 161), Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (FAS 133), was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 amends and expands the disclosure requirements of FAS 133 in order to provide financial statement users an understanding of a company’s use of derivative instruments, how derivative instruments are accounted for under FAS 133 and related interpretations, and how these instruments affect a company’s financial position, performance and cash flows. FAS 161 requires companies to disclose information detailing the objectives and strategies for using derivative instruments, the level of derivative activity entered into by the company, and any credit risk-related contingent features of the agreements. Management is currently evaluating the adoption of FAS 161 on the Fund’s financial statement disclosures.

Distribution of income and gains

The Fund records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. There were no distributions during the year ended October 31, 2007. 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.

Note 3
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 equivalent, on an annual basis, to the sum of: (a) 1.00% of the first $2,400,000,000 of the Fund’s average daily net asset value and (b) 0.95% of the Fund’s daily average net asset value in excess of $2,400,000,000. The effective rate for the period ended April 30, 2008 is 0.75% of the Fund’s average daily net asset value. The Fund has a subadvisory agreement with MFC Global Investment Management

Semiannual report | Growth Trends Fund  23 

(U.S.), LLC, a subsidiary of John Hancock Financial Services, Inc. The Fund is not responsible for payment of subadvisory fees.

The Adviser contractually limited the Fund’s management fee to 0.75% of the Fund’s average daily net assets, at least until February 28, 2009. Accordingly, the expense reductions related to management fee limitation amounted to $93,176 for the period ended April 30, 2008. The Adviser reserves the right to terminate this limitation in the future.

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, on an annual basis, at least until February 28, 2009. Pursuant to this agreement, there was no reimbursement for the period ended April 30, 2008. The Adviser reserves the right to terminate this limitation in the future.

The Fund has a Distribution Agreement 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 1940 Act, to pay 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%, 1.00% and 1.00% of average daily net asset value of Class A, Class B and Class C, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority (formerly 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 shares are assessed up-front sales charges. During the period ended April 30, 2008, JH Funds received net up-front sales charges of $9,134 with regard to sales of Class A shares. Of this amount, $1,392 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $6,047 was paid as sales commissions to unrelated broker-dealers and $1,695 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.

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, 2008, CDSCs received by JH Funds amounted to $15,946 for Class B shares and $358 for Class C shares.

The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of JHLICO. For Class A, Class B and Class C shares, the Fund pays a monthly transfer agent fee at an annual rate of 0.05% of each class’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. The Fund pays a monthly fee which is based on an annual rate of $15.00 for each Class A shareholder account, $17.50 for each Class B shareholder account and $16.50 for each Class C shareholder account. Effective July 1, 2006, the transfer agent has contractually limited transfer agent fees by implementing a transfer agent fee cap of 0.25% until at least February 28, 2009. Accordingly, the expense reductions related to transfer agent fee limitations amounted to $74,912 for the period ended April 30, 2008. Signature Services reserves the right to terminate this reimbursement limitation at any time.

24  Growth Trends Fund | Semiannual report 

In June 2007, the Fund began receiving earnings credits from its transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Fund’s transfer agent fees and out-of-pocket expenses. During the period ended April 30, 2008, the Fund’s transfer agent fees and out-of-pocket expenses were reduced by $4,953 for transfer agent credits earned.

Class level expenses for the period ended April 30, 2008 were as follows:

  Transfer agent  Distribution and 
Share class  fees  service fees 
Class A  $65,141  $41,977 
Class B  78,519  169,119 
Class C  29,382  63,663 
Total  $173,042  $274,759 

The Fund has an agreement with the Adviser and affiliates to perform necessary tax, accounting, compliance, legal and other administrative services for the Fund. The compensation for the period amounted to $3,727 with an effective rate of 0.01% of the Fund’s average daily net asset value.

Mr. James R. Boyle is Chairman of the Adviser, as well as affiliated Trustee of the Fund, and is compensated by the Adviser and/ or its affiliates. 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 Compensation 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 4
Fund share transactions

This listing illustrates the number of Fund shares sold and repurchased during the year ended October 31, 2007, and the period ended April 30, 2008, along with the corresponding dollar value.

  Year ended 10-31-07  Period ended 4-30-081 
  Shares  Amount  Shares  Amount 
Class A shares         
Sold  332,094  $2,386,622  133,510  $874,438 
Repurchased  (1,725,648)  (12,437,003)  (539,368)  (3,631,331) 
Net decrease  (1,393,554)  ($10,050,381)  (405,858)  ($2,756,893) 
 
Class B shares         
Sold  164,363  $1,127,286  60,343  $379,979 
Repurchased  (2,460,829)  (16,930,012)  (743,886)  (4,743,220) 
Net decrease  (2,296,466)  ($15,802,726)  (683,543)  ($4,363,241) 
 
Class C shares         
Sold  94,760  $653,398  47,104  $293,210 
Repurchased  (801,218)  (5,516,231)  (297,701)  (1,877,092) 
Net decrease  (706,458)  ($4,862,833)  (250,597)  ($1,583,882) 
 
Net decrease  (4,396,478)  ($30,715,940)  (1,339,998)  ($8,704,016) 

1Semiannual period from 11-1-07 to 4-30-08. Unaudited.

Semiannual report | Growth Trends Fund  25 

Note 5
Purchase and sale of securities

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, 2008, aggregated $29,549,365 and $40,490,783, respectively.

Note 6
Subsequent event

On June 10, 2008, the Trustees of the Fund voted to recommend that the shareholders of the Fund approve a tax-free reorganization of the Fund into John Hancock Rainier Growth Fund (Rainier Growth Fund), another fund within the John Hancock Funds Complex, as described below.

Under the terms of the reorganization, subject to shareholders’ approval at a shareholder meeting scheduled to be held on September 24, 2008, the Fund would transfer all of its assets and liabilities to the Rainier Growth Fund in a tax-free exchange for shares of equal value of the Rainier Growth Fund. Further information regarding the proposed reorganization will be contained in a proxy statement and prospectus which is scheduled to be mailed to the Fund’s shareholders on or about July 31, 2008.

26  Growth Trends Fund | Semiannual report 

Board Consideration of and
Continuation of Investment Advisory
Agreement and Subadvisory
Agreement: John Hancock Growth
Trends Fund

The Investment Company Act of 1940 (the 1940 Act) requires the Board of Trustees (the Board) of John Hancock Equity Trust (the Trust), including a majority of the Trustees who have no direct or indirect interest in the investment advisory agreement and are not “interested persons” of the Trust, as defined in the 1940 Act (the Independent Trustees), annually to meet in person to review and consider the continuation of: (i) the investment advisory agreement (the Advisory Agreement) with John Hancock Advisers, LLC (the Adviser) and (ii) the investment Subadvisory agreement (the Subadvisory Agreement) with MFC Global Investment Management (U.S.), LLC (the Subadviser) for the John Hancock Growth Trends Fund (the Fund). The Advisory Agreement with the Adviser and the Subadvisory Agreement with the Subadviser are collectively referred to as the Advisory Agreements.

At meetings held on May 7 and June 4–5, 2007, the Board considered the factors and reached the conclusions described below relating to the selection of the Adviser and Subadviser and the continuation of the Advisory Agreements. During such meetings, the Board’s Contracts/ Operations Committee and the Independent Trustees also met in executive sessions with their independent legal counsel.

In evaluating the Advisory Agreements, the Board, including the Contracts/Operations Committee and the Independent Trustees, reviewed a broad range of information requested for this purpose by the Independent Trustees, including: (i) the investment performance of the Fund relative to a category of relevant funds (the Category) and a peer group of comparable funds (the Peer Group) each selected by Morningstar Inc. (Morningstar), an independent provider of investment company data, for a range of periods ended December 31, 2006, (ii) advisory and other fees incurred by, and the expense ratios of, the Fund relative to a Category and a Peer Group, (iii) the advisory fees of comparable portfolios of other clients of the Adviser and the Subadviser, (iv) the Adviser’s financial results and condition, including its and certain of its affiliates’ profitability from services performed for the Fund, (v) breakpoints in the Fund’s and the Peer Group’s fees, and information about economies of scale, (vi) the Adviser’s and Subadviser’s record of compliance with applicable laws and regulations, with the Fund’s investment policies and restrictions, and with the applicable Code of Ethics, and the structure and responsibilities of the Adviser’s and Subadviser’s compliance department, (vii) the background and experience of senior management and investment professionals, and (viii) the nature, cost and character of advisory and non-investment management services provided by the Adviser and its affiliates and by the Subadviser.

The Independent Trustees considered the legal advice of independent legal counsel and relied on their own business judgment in determining the factors to be considered in evaluating the materials that were presented to them and the weight to be given to each such factor. The Board’s review and conclusions were based on a comprehensive consideration of all information presented to the Board and not the result of any single controlling factor. They principally considered performance and other information from Morningstar as of December 31, 2006. The Board also considered updated performance information provided to it by the Adviser or Subadviser at the May and June 2007 meetings. Performance and other information may be quite different as of the date of this shareholders report. The key factors considered by the Board and the conclusions reached are described below.

Nature, extent and quality of services

The Board considered the ability of the Adviser and the Subadviser, based on their resources, reputation and other attributes, to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel. The Board considered the investment philosophy, research and investment decision-making processes of the Adviser and Subadviser. The Board further considered the culture of compliance, resources dedicated to compliance, compliance programs and compliance records of the Adviser and Subadviser. In addition, the

Semiannual report | Growth Trends Fund  27 

Board took into account the administrative and other non-advisory services provided to the Fund by the Adviser and its affiliates.

Based on the above factors, together with those referenced below, the Board concluded that, within the context of its full deliberations, the nature, extent and quality of the investment advisory services provided to the Fund by the Adviser and Subadviser supported renewal of the Advisory Agreements.

Fund performance

The Board considered the performance results for the Fund over various time periods ended December 31, 2006. The Board also considered these results in comparison to the performance of the Category, as well as the Fund’s benchmark index. Morningstar determined the Category and Peer Group for the Fund. The Board reviewed with a representative of Morningstar the methodology used by Morningstar to select the funds in the Category and the Peer Group.

The Board noted that the Fund’s performance during the 5-year period was lower than the performance of the Peer Group and Category medians. The Board noted that during the 3-year period the Fund’s performance was lower than the performance of the Category median, but higher than the performance of the Peer Group median. The Board viewed favorably that the Fund’s performance was higher than the performance of both the Peer Group and Category medians during the 1-year period under review. The Board further noted that the Fund’s performance was lower than the performance of its benchmark index, the Standard & Poor’s 500 Index, for all of the time periods under review, as was the performance of the Peer Group and Category medians.

Investment advisory fee and subadvisory fee rates and expenses

The Board reviewed and considered the contractual investment advisory fee rate payable by the Fund to the Adviser for investment advisory services (the Advisory Agreement Rate). The Board received and considered information comparing the Advisory Agreement Rate with the advisory fees for the Peer Group and Category. The Board noted that the Advisory Agreement Rate was equal to the median rate of the Category, and lower than the median rate of the Peer Group.

The Board received and considered expense information regarding the Fund’s various components, including advisory fees, distribution and fees other than advisory and distribution fees, including transfer agent fees, custodian fees, and other miscellaneous fees (e.g., fees for accounting and legal services). The Board considered comparisons of these expenses to the Peer Group median. The Board also received and considered expense information regarding the Fund’s total operating expense ratio (Gross Expense Ratio) and total operating expense ratio after taking the fee waiver arrangement applicable to the Advisory Agreement Rate into account (Net Expense Ratio). The Board received and considered information comparing the Gross Expense Ratio and Net Expense Ratio of the Fund to that of the Peer Group and Category medians. The Board noted that the Fund’s Gross and Net Expense Ratios were higher than the median of its Peer Group and Category. The Adviser explained that fee caps were not fully reflected in the Morningstar analysis, which would have lowered the overall total operating expense ratio. The Board favorably considered the impact of fee caps towards ultimately lowering the Fund’s total operating expense ratio.

The Adviser also discussed the Morningstar data and rankings, and other relevant information, for the Fund. Based on the above-referenced considerations and other factors, the Board concluded that the Fund’s overall performance and expenses supported the re-approval of the Advisory Agreements.

The Board also received information about the investment Subadvisory fee rate (the Subadvisory Agreement Rate) payable by the Adviser to the Subadviser for investment Subadvisory services. The Board concluded that the Subadvisory Agreement Rate was fair and equitable, based on its consideration of the factors described here.

Profitability

The Board received and considered a detailed profitability analysis of the Adviser based

28  Growth Trends Fund | Semiannual report 

on the Advisory Agreements, as well as on other relationships between the Fund and the Adviser and its affiliates, including the Subadviser. The Board also considered a comparison of the Adviser’s profitability to that of other similar investment advisers whose profitability information is publicly available. The Board concluded that, in light of the costs of providing investment management and other services to the Fund, the profits and other ancillary benefits reported by the Adviser were not unreasonable.

Economies of scale

The Board received and considered general information regarding economies of scale with respect to the management of the Fund, including the Fund’s ability to appropriately benefit from economies of scale under the Fund’s fee structure. The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of the Adviser’s costs are not specific to individual Funds, but rather are incurred across a variety of products and services.

To the extent the Board and the Adviser were able to identify actual or potential economies of scale from Fund-specific or allocated expenses, in order to ensure that any such economies continue to be reasonably shared with the Fund as its assets increase, the Adviser and the Board agreed to continue the existing breakpoints to the Advisory Agreement Rate.

Information about services to other clients

The Board also received information about the nature, extent and quality of services and fee rates offered by the Adviser and Subadviser to their other clients, including other registered investment companies, institutional investors and separate accounts. The Board concluded that the Advisory Agreement Rate and the Subadvisory Agreement Rate were not unreasonable, taking into account fee rates offered to others by the Adviser and Subadviser, respectively, after giving effect to differences in services.

Other benefits to the Adviser

The Board received information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. Such benefits could include, among others, benefits directly attributable to the relationship of the Adviser with the Fund and benefits potentially derived from an increase in the business of the Adviser as a result of its relationship with the Fund (such as the ability to market to shareholders other financial products offered by the Adviser and its affiliates).

The Board also considered the effectiveness of the Adviser’s, Subadviser’s and Fund’s policies and procedures for complying with the requirements of the federal securities laws, including those relating to best execution of portfolio transactions and brokerage allocation.

Other factors and broader review

As discussed above, the Board reviewed detailed materials received from the Adviser and Subadviser as part of the annual re-approval process. The Board also regularly reviews and assesses the quality of the services that the Fund receives throughout the year. In this regard, the Board reviews reports of the Adviser at least quarterly, which include, among other things, a detailed portfolio review, detailed fund performance reports and compliance reports. In addition, the Board meets with portfolio managers and senior investment officers at various times throughout the year.

After considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board concluded that approval of the continuation of the Advisory Agreements for the Fund was in the best interest of the Fund and its shareholders. Accordingly, the Board unanimously approved the continuation of the Advisory Agreements.

Semiannual report | Growth Trends Fund  29 

For more information

The Fund’s proxy voting policies, procedures and records are available without charge, upon request:

By phone  On the Fund’s Web site  On the SEC’s Web site 
1-800-225-5291  www.jhfunds.com/proxy  www.sec.gov 
 
Trustees Charles A. Rizzo Custodian 
James F. Carlin, Chairman    Chief Financial Officer  Bank of New York Mellon 
James R. Boyle†    One Wall Street 
William H. Cunningham  Gordon M. Shone  New York, NY 10286 
Charles L. Ladner*   Treasurer    
Dr. John A. Moore*     Transfer agent 
Patti McGill Peterson*  John G. Vrysen  John Hancock Signature 
Steven R. Pruchansky   Chief Operating Officer    Services, Inc. 
*Members of the Audit Committee      P.O. Box 9510 
†Non-Independent Trustee   Investment adviser  Portsmouth, NH 03802-9510 
  John Hancock Advisers, LLC    
Officers  601 Congress Street Legal counsel
Keith F. Hartstein  Boston, MA 02210-2805  Kirkpatrick & Lockhart 
President and      Preston Gates Ellis LLP 
Chief Executive Officer  Subadviser  One Lincoln Street 
  MFC Global Investment  Boston, MA 02111-2950 
Thomas M. Kinzler    Management (U.S.), LLC 
Secretary and Chief Legal Officer   101 Huntington Avenue   
  Boston, MA 02199   
Francis V. Knox, Jr. 
Chief Compliance Officer   Principal distributor   
  John Hancock Funds, LLC   
  601 Congress Street   
  Boston, MA 02210-2805   

How to contact us   
 
Internet  www.jhfunds.com   
 
Mail  Regular mail:  Express mail: 
  John Hancock Signature  John Hancock Signature 
    Services, Inc.    Services, Inc. 
  P.O. Box 9510  Mutual Fund Image Operations 
  Portsmouth, NH 03802-9510  164 Corporate Drive 
    Portsmouth, NH 03801 
 
Phone  Customer service representatives  1-800-225-5291 
  EASI-Line  1-800-338-8080 
  TDD line  1-800-554-6713 

A listing of month-end portfolio holdings is available on our Web site, www.jhfunds.com. A more detailed portfolio holdings summary is available on a quarterly basis 60 days after the fiscal quarter on our Web site or upon request by calling 1-800-225-5291, or on the SEC’s Web site, www.sec.gov.

30  Growth Trends Fund | Semiannual report 


1-800-225-5291
1-800-554-6713 TDD
1-800-338-8080 EASI-Line
www.jhfunds.com

Now available: electronic delivery
www.jhfunds.com/edelivery

This report is for the information of the shareholders of John Hancock Growth Trends Fund.  460SA  4/08 
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.    6/08 


A look at performance

For the periods ended April 30, 2008

    Average annual returns      Cumulative total returns       
    with maximum sales charge (POP)    with maximum sales charge (POP)     
  Inception        Since          Since 
Class  date  1-year  5-year  10-year  inception  6 months  1-year  5-year  10-year  inception 
A1  12-16-98  –16.40%  8.81%  —  7.73%  –23.75%  –16.40%  52.51%  —  100.87% 
B  12-6-04  –16.39  —  —  –0.61  –23.53  –16.39  —  —  –2.04 
C  12-6-04  –13.31  —  —  0.18  –20.72  –13.31  —  —  0.60 
I2  12-6-04  –11.45  —  —  1.36  –19.45  –11.45  —  —  4.70 

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charge on Class A shares of 5% and the applicable contingent deferred sales charges (CDSC) on Class B and Class C shares. The return for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective July 15,2004. The Class B shares CDSC declines annually between years 1 to 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. Sales charge is not applicable for Class I shares.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The net expenses equal the gross expenses and are as follows: Class A — 1.60%, Class B — 2.30%, Class C — 2.30%, Class I — 1.08% .

The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, the Fund’s current performance may be higher or lower than the performance shown. For performance data current to the most recent month end, please call 1-800-225-5291 or visit the Fund’s Web site at www.jhfunds.com.

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.

1 Effective December 3, 2004, shareholders of the former Independence Small Cap Portfolio became owners of that number of full and fractional shares of Class A shares of the John Hancock Small Cap Fund. Additionally, the accounting and performance history of the former Independence Small Cap Portfolio was redesignated as that of Class A of John Hancock Small Cap Fund.

2 For certain types of investors as described in the Fund’s Class I share prospectus.

6  Small Cap Fund | Semiannual report 

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Small Cap Fund Class A shares for the period indicated. For comparison, we’ve shown the same investment in two separate indexes.


 

    Without sales  With maximum     
Class  Period beginning  charge  sales charge  Index 1  Index 2 
B2  12-6-04  $10,060  $9,796  $11,676  $12,159 
C2,3  12-6-04  10,060  10,060  11,676  12,159 
I2,4  12-6-04  10,470  10,470  11,676  12,159 

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, Class C and Class I shares, respectively, as of April 30, 2008. 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.

Russell 2000 Index — Index 1 — is an unmanaged index composed of 2,000 U.S. small-capitalization stocks.

Standard & Poor’s SmallCap 600 Index — Index 2 — is an unmanaged index of 600 domestic stocks of small-size companies.

It is not possible to invest directly in an index. Index figures do not reflect sales charges, which would have resulted in lower values if they did.

1 NAV represents net asset value and POP represents public offering price.

2 Index 2 figure as of closest month end to inception date.

3 No contingent deferred sales charge applicable.

4 For certain types of investors as described in the Fund’s Class I share prospectus.

Semiannual report | Small Cap Fund  7 

Your expenses

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

Understanding fund expenses

As a shareholder of the Fund, you incur two types of costs:

■ Transaction costs which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.

■ Ongoing operating expenses including management fees, distribution and service fees (if applicable), and other fund expenses.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

This example is intended to provide information about your fund’s actual ongoing operating expenses, and is based on your fund’s actual return. It assumes an account value of $1,000.00 on November 1, 2007, with the same investment held until April 30, 2008.

  Account value  Ending value  Expenses paid during period 
  on 11-1-07  on 4-30-08  ended 4-30-081 
Class A  $1,000.00  $802.60  $7.44 
Class B  1,000.00  799.90  10.56 
Class C  1,000.00  799.90  10.56 
Class I  1,000.00  805.50  4.94 

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at April 30, 2008, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:


8  Small Cap Fund | Semiannual report 

Hypothetical example for comparison purposes

This table allows you to compare your fund’s ongoing operating expenses with those of any other fund. It provides an example of the Fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not your fund’s actual return). It assumes an account value of $1,000.00 on November 1, 2007, with the same investment held until April 30, 2008. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

  Account value  Ending value  Expenses paid during period 
  on 11-1-07  on 4-30-08  ended 4-30-081 
Class A  $1,000.00  $1,016.61  $8.32 
Class B  1,000.00  1,013.28  11.81 
Class C  1,000.00  1,013.28  11.81 
Class I  1,000.00  1,019.39  5.52 

Remember, these examples do not include any transaction costs, such as sales charges; therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.

1 Expenses are equal to the Fund’s annualized expense ratio of 1.66%, 2.36%, 2.36% and 1.10% for Class A, Class B, Class C and Class I, respectively, multiplied by the average account value over the period, multiplied by [number of days in most recent fiscal half-year/366] (to reflect the one-half year period).

Semiannual report | Small Cap Fund  9 

Portfolio summary

Top 10 holdings1       
iShares Russell 2000 Index Fund  4.5%  SVB Financial Group  3.5% 
 
Chart Industries, Inc.  4.1%  Symmetry Medical, Inc.  3.5% 
 
inVentiv Health, Inc.  4.0%  Kendle International, Inc.  3.3% 
 
Inter Parfums, Inc.  3.9%  Flow International Corp.  3.1% 
 
Goodrich Petroleum Corp.  3.6%  Air Methods Corp.  3.0% 
 

Sector distribution1       
Health care  22%  Materials  6% 
 
Financials  18%  Consumer staples  4% 
 
Industrials  16%  Energy  3% 
 
Information technology  15%  Other  1% 
 
Consumer discretionary  15%     
 

 



1 As a percentage of net assets on April 30, 2008.

10  Small Cap Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Fund’s investments

Securities owned by the Fund on 4-30-08 (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 98.95%    $126,666,462 
(Cost $122,213,269)     
 
Air Freight & Logistics 0.53%    677,440 
Pacer International, Inc.  36,500  677,440 
 
Airlines 2.26%    2,891,225 
Allegiant Travel Co. (I)  106,100  2,891,225 
 
Apparel Retail 2.36%    3,025,853 
Citi Trends Inc. (I)(L)  143,134  3,025,853 
 
Apparel, Accessories & Luxury Goods 4.11%    5,255,811 
G-III Apparel Group, Ltd. (I)  250,800  3,699,300 
Under Armour, Inc. (Class A) (I)(L)  46,700  1,556,511 
 
Application Software 3.21%    4,107,826 
ACI Worldwide, Inc. (I)(L)  84,300  1,863,030 
Deltek, Inc. (I)  182,801  2,244,796 
 
Auto Parts & Equipment 1.47%    1,885,670 
Fuel Systems Solutions, Inc. (I)  101,000  1,885,670 
 
Catalog Retail 1.76%    2,248,295 
Gaiam, Inc. (Class A) (I)(L)  127,744  2,248,295 
 
Computer Storage & Peripherals 0.23%    291,884 
Synaptics, Inc. (I)(L)  8,600  291,884 
 
Diversified Chemicals 1.40%    1,789,740 
Penford Corp.  81,500  1,789,740 
 
Electronic Equipment Manufacturers 0.90%    1,154,300 
Daktronics, Inc. (L)  78,046  1,154,300 
 
Electronic Manufacturing Services 2.53%    3,233,909 
IPG Photonics Corp. (I)  193,300  3,233,909 
 
Environmental & Facilities Service 2.25%    2,874,242 
CECO Environment Corp. (I)  197,524  1,637,474 
Team, Inc.  41,600  1,236,768 
 
Health Care Equipment 7.58%    9,700,244 
Abaxis, Inc. (I)  45,000  1,146,600 
Cantel Medical Corp. (I)  198,900  1,899,495 
SurModics, Inc. (I)(L)  49,400  2,196,818 
Symmetry Medical, Inc. (I)  317,700  4,457,331 

See notes to financial statements

Semiannual report | Small Cap Fund  11 

F I N A N C I A L   S T A T E M E N T S

Issuer  Shares  Value 
 
Health Care Services 7.71%    $9,875,844 
Air Methods Corp. (I)  96,300  3,861,630 
inVentiv Health, Inc. (I)  170,800  5,077,884 
Nighthawk Radiology Holdings, Inc. (I)  124,844  936,330 
 
Health Care Supplies 2.99%    3,833,200 
Inverness Medical Innovations, Inc. (I)(L)  103,600  3,833,200 
 
Heavy Electrical Equipment 1.60%    2,051,392 
PowerSecure International, Inc. (I)(L)  168,700  2,051,392 
 
Hotels, Resorts & Cruise Lines 2.47%    3,166,378 
Gaylord Entertainment Co. (I)  106,900  3,166,378 
 
Housewares & Specialties 0.56%    713,618 
Russ Berrie & Company, Inc. (I)  50,900  713,618 
 
Human Resource & Employment Services 1.52%    1,950,135 
Kenexa Corp. (I)  111,500  1,950,135 
 
Industrial Machinery 8.56%    10,958,206 
Chart Industries, Inc. (I)  129,000  5,242,560 
Dynamic Materials Corp.  38,400  1,805,952 
Flow International Corp. (I)  389,800  3,909,694 
 
Internet Software & Services 2.85%    3,644,003 
DivX, Inc. (I)(L)  173,200  1,295,536 
TheStreet.com, Inc.  300,700  2,348,467 
 
Investment Banking & Brokerage 2.46%    3,155,184 
FBR Capital Markets Corp. (I)  156,000  1,014,000 
SWS Group, Inc.  163,200  2,141,184 
 
IT Consulting & Other Services 0.30%    383,022 
Lionbridge Technologies, Inc. (I)  129,838  383,022 
 
Life Sciences Tools & Services 3.30%    4,217,772 
Kendle International, Inc. (I)(L)  98,800  4,217,772 
 
Oil & Gas Exploration & Production 3.65%    4,668,396 
Goodrich Petroleum Corp. (I)(L)  138,200  4,668,396 
 
Personal Products 3.93%    5,033,248 
Inter Parfums, Inc.  173,800  5,033,248 
 
Property & Casualty Insurance 5.88%    7,530,045 
First Mercury Financial Corp. (I)  176,844  2,794,135 
National Interstate Corp.  87,400  1,988,350 
Philadelphia Consolidated Holding Corp. (I)  74,500  2,747,560 
 
Railroads 0.51%    652,944 
Genesee & Wyoming, Inc. (Class A) (I)  18,300  652,944 
 
Regional Banks 3.49%    4,462,122 
SVB Financial Group (I)  91,700  4,462,122 
 
Specialized Finance 5.83%    7,465,709 
iShares Russell 2000 Index Fund  81,300  5,804,007 
iShares S&P SmallCap 600 Index  26,600  1,661,702 

See notes to financial statements

12  Small Cap Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Issuer  Shares  Value 
 
Specialty Chemicals 3.49%    $4,465,782 
Arch Chemicals, Inc.  84,800  2,889,136 
ICO, Inc. (I)  212,200  1,576,646 
 
Specialty Stores 1.90%    2,435,860 
Tractor Supply Co. (I)(L)  68,500  2,435,860 
 
Systems Software 5.36%    6,867,163 
Radiant Systems, Inc. (I)  263,100  3,549,219 
Secure Computing Corp. (I)  501,200  3,317,944 

  Interest  Par value   
Issuer, description, maturity date  rate  (000)  Value 
 
Short-term investments 23.47%      $30,047,013 
(Cost $30,047,013)       
 
Joint Repurchase Agreement 1.85%      2,365,000 
Joint Repurchase Agreement with Bank of America       
  Corp. dated 4-30-08 at 1.91% to be repurchased       
  at $2,365,125 on 5-1-08, collateralized by       
  $1,857,408 U.S. Treasury Inflation Indexed Bond,       
  3.00% due, 7-15-12 (valued at $2,412,300,       
  including interest)  1.910%  $2,365  2,365,000 
 
    Shares   
Cash Equivalents 21.62%      27,682,013 
John Hancock Cash Investment Trust (T)(W)  2.726% (Y)  27,682,013  27,682,013 
 
Total investments (Cost $152,260,282)† 122.42%    $156,713,475 
 
Other assets and liabilities, net (22.42%)      ($28,698,042) 
 
Total net assets 100.00%      $128,015,433 

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

(I) Non-income-producing security.

(L) All or a portion of this security is on loan as of April 30, 2008.

(T) Represents investment of securities lending collateral.

(W) Issuer is an affiliate of John Hancock Advisers, LLC.

(Y) Represents current yield as of April 30, 2008.

† The cost of investments owned on April 30, 2008, including short-term investments, for Federal income tax purposes, was $154,904,404. Gross unrealized appreciation and depreciation of investments aggregated $16,789,587 and $14,980,516, respectively, resulting in net unrealized appreciation of $1,809,071.

See notes to financial statements

Semiannual report | Small Cap Fund  13 

F I N A N C I A L   S T A T E M E N T S

Financial statements

Statement of assets and liabilities 4-30-08 (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 in unaffiliated issuers, at value (Cost $124,578,269) including   
  $27,139,229 of securities loaned (Note 2)  $129,031,462 
Investments in affiliated issuers, at value (Cost $27,682,013)  27,682,013 
 
Total investments, at value (Cost $152,260,282)  156,713,475 
Cash  304 
Receivable for investments sold  5,043,452 
Receivable for shares sold  269,151 
Dividends and interest receivable  61,865 
Receivable from affiliates  4,424 
Other assets  12,013 
 
Total assets  162,104,684 
 
 
Liabilities   
Payable for investments purchased  5,400,397 
Payable for shares repurchased  685,973 
Payable upon return of securities loaned (Note 2)  27,682,013 
Payable to affiliates   
  Management fees  93,628 

   Distribution and service fees 

42,659 
  Other  82,691 
Other payables and accrued expenses  101,890 
 
Total liabilities  34,089,251 
 
Net assets   
Capital paid-in  132,893,079 
Accumulated net realized loss on investments  (8,831,608) 
Net unrealized appreciation of investments  4,453,193 
Accumulated net investment loss  (499,231) 
 
Net assets  $128,015,433 
 
Net asset value per share   
Based on net asset values and shares outstanding — the Fund has an   

  unlimited number of shares authorized with no par value 

 
Class A ($85,522,074 ÷ 8,423,914 shares)  $10.15 
Class B ($5,704,324 ÷ 576,960 shares)1  $9.89 
Class C ($20,959,696 ÷ 2,119,571 shares)1  $9.89 
Class I ($15,829,339 ÷ 1,531,400 shares)  $10.34 
 
Maximum offering price per share   
Class A ($10.15 ÷ 95%)2  $10.68 

1 Redemption price is equal to net asset value less any applicable contingent deferred sales charge.

2 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

14  Small Cap Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Statement of operations For the period ended 4-30-08 (unaudited)1

This Statement of Operations summarizes the Fund’s investment income earned and expenses incurred in operating the Fund. It also shows net gains (losses) for the period stated.

Investment income   
Securities lending  $348,087 
Dividends  299,075 
Income from affiliated issuers  155,640 
Interest  44,115 
 
Total investment income  846,917 
 
Expenses   
Investment management fees (Note 3)  692,646 
Distribution and service fees (Note 3)  326,987 
Transfer agent fees (Note 3)  225,336 
Accounting and legal services fees (Note 3)  7,697 
Blue sky fees  41,681 
Printing fees  37,707 
Custodian fees  29,460 
Professional fees  11,512 
Trustees’ fees  5,927 
Miscellaneous  8,679 
 
Total expenses  1,387,632 
Less expense reductions (Note 3)  (41,490) 
 
Net expenses  1,346,142 
 
Net investment loss  (499,225) 
Realized and unrealized loss   
Net realized loss on investments  (6,667,519) 
  (6,667,519) 
Change in net unrealized appreciation (depreciation) of investments  (31,647,556) 
  (31,647,556) 
Net realized and unrealized loss  (38,315,075) 
Decrease in net assets from operations  ($38,814,300) 

1 Semiannual period from 11-1-07 to 4-30-08.

See notes to financial statements

Semiannual report | Small Cap Fund  15 

F I N A N C I A L   S T A T E M E N T S

Statement of 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 difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Fund share transactions.

  Year  Period 
  ended  ended 
  10-31-07  4-30-081 
 
Increase (decrease) in net assets     
From operations     
Net investment loss  ($1,959,802)  ($499,225) 
Net realized gain (loss)  25,237,119  (6,667,519) 
Change in net unrealized appreciation (depreciation)  5,603,599  (31,647,556) 
 
Increase (decrease) in net assets resulting from operations  28,880,916  (38,814,300) 
Distributions to shareholders     
From net realized gain     
Class A  —  (14,316,661) 
Class B  —  (994,058) 
Class C  —  (3,980,157) 
Class I  —  (2,019,611) 
  —  (21,310,487) 
From Fund share transactions (Note 4)  (81,438,338)  (15,490,948) 
Total decrease  (52,557,422)  (75,615,735) 
 
Net assets     
Beginning of period  256,188,590  203,631,168 
End of period2  $203,631,168  $128,015,433 

1 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

2 Includes accumulated net investment loss of $6 and $499,231, respectively.

See notes to financial statements

16  Small Cap Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Financial highlights

The Financial Highlights show how the Fund’s net asset value for a share has changed since the end of the previous period.

CLASS A SHARES

Period ended  10-31-03  10-31-04  10-31-051  10-31-06  10-31-07  4-30-082 
Per share operating performance             
Net asset value, beginning of period  $8.22  $10.06  $11.44  $11.56  $12.63  $14.32 
Net investment loss3  (0.05)  (0.09)  (0.11)  (0.12)  (0.10)4  (0.03) 
Net realized and unrealized gain (loss)             
  on investments  2.22  1.61  1.61  1.24  1.79  (2.62) 
Total from investment operations  2.17  1.52  1.50  1.12  1.69  (2.65) 
Less distributions             
From net realized gain  (0.33)  (0.14)  (1.38)  (0.05)  —  (1.52) 
Net asset value, end of period  $10.06  $11.44  $11.56  $12.63  $14.32  $10.15 
Total return (%)5  27.416  15.256  13.446  9.716  13.38  (19.74)6,7 
 
Ratios and supplemental data             
Net assets, end of period             
  (in millions)  $16  $28  $105  $162  $137  $86 
Ratios (as a percentage of average             
  net assets):             
  Expenses before reductions  2.60  2.23  1.65  1.60  1.60  1.718 
  Expenses net of fee waivers, if any  1.18  1.23  1.57  1.59  1.60  1.668 
  Expenses net of all fee waivers             
    and credits  1.18  1.23  1.57  1.59  1.60  1.658 
  Net investment loss  (0.57)  (0.80)  (0.99)  (0.98)  (0.72)4  (0.55)8 
Portfolio turnover (%)  79  129  145  74  96  40 

1 Effective 12-3-04, shareholders of the former Independence Small Cap Portfolio became owners of an equal number of full and fractional Class A shares of the John Hancock Small Cap Fund. Additionally, the accounting and performance history of the Independence Small Cap Portfolio was redesignated as that of Class A of John Hancock Small Cap Fund.

2 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

3 Based on the average of the shares outstanding.

4 Net investment loss per share and ratio of net investment loss to average net assets reflects a special dividend received by the Fund which amounted to $0.01 per share and 0.06% of average net assets.

5 Assumes dividend reinvestment and does not reflect the effect of sales charges.

6 Total returns would have been lower had certain expenses not been reduced during the periods shown.

7 Not annualized.

8 Annualized.

See notes to financial statements

Semiannual report | Small Cap Fund  17 

F I N A N C I A L   S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended  10-31-051  10-31-06  10-31-07  4-30-082 
 
Per share operating performance         
Net asset value, beginning of period  $11.21  $11.49  $12.47  $14.04 
Net investment loss3  (0.17)  (0.20)  (0.19)4  (0.07) 
Net realized and unrealized gain (loss)         
  on investments  0.45  1.23  1.76  (2.56) 
Total from investment operations  0.28  1.03  1.57  (2.63) 
Less distributions         
From net realized gain  —  (0.05)  —  (1.52) 
Net asset value, end of period  $11.49  $12.47  $14.04  $9.89 
Total return (%)5  2.506,7  8.996  12.59  (20.01)6,7 
 
Ratios and supplemental data         
Net assets, end of period         
  (in millions)  $9  $11  $9  $6 
Ratios (as a percentage of average net assets):         
  Expenses before reductions  2.358  2.30  2.30  2.418 
  Expenses net of fee waivers, if any  2.278  2.29  2.30  2.368 
  Expenses net of all fee waivers         
    and credits  2.278  2.29  2.30  2.358 
  Net investment loss  (1.67)8  (1.67)  (1.42)4  (1.25)8 
Portfolio turnover (%)  145  74  96  40 

1 Class B began operations on 12-6-04.

2 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

3 Based on the average of the shares outstanding.

4 Net investment loss per share and ratio of net investment loss to average net assets reflects a special dividend received by the Fund which amounted to $0.01 per share and 0.06% of average net assets.

5 Assumes dividend reinvestment and does not reflect the effect of sales charges.

6 Total returns would have been lower had certain expenses not been reduced during the periods shown.

7 Not annualized.

8 Annualized.

See notes to financial statements

18  Small Cap Fund | Semiannual report 

F I N A N C I A L  S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended  10-31-051  10-31-06  10-31-07  4-30-082 
 
Per share operating performance         
Net asset value, beginning of period  $11.21  $11.49  $12.47  $14.04 
Net investment loss3  (0.17)  (0.20)  (0.19)4  (0.07) 
Net realized and unrealized gain (loss)         
  on investments  0.45  1.23  1.76  (2.56) 
Total from investment operations  0.28  1.03  1.57  (2.63) 
Less distributions         
From net realized gain  —  (0.05)  —  (1.52) 
Net asset value, end of period  $11.49  $12.47  $14.04  $9.89 
Total return (%)5  2.506,7  8.996  12.59  (20.01)6,7 
 
Ratios and supplemental data         
Net assets, end of period         
  (in millions)  $31  $44  $38  $21 
Ratios (as a percentage of average net assets):         
  Expenses before reductions  2.358  2.30  2.30  2.418 
  Expenses net of fee waivers, if any  2.278  2.29  2.30  2.368 
  Expenses net of all fee waivers         
    and credits  2.278  2.29  2.30  2.358 
  Net investment loss  (1.67)8  (1.68)  (1.42)4  (1.25)8 
Portfolio turnover (%)  145  74  96  40 

1 Class C shares began operations on 12-6-04.

2 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

3 Based on the average of the shares outstanding.

4 Net investment loss per share and ratio of net investment loss to average net assets reflects a special dividend received by the Fund which amounted to $0.01 per share and 0.06% of average net assets.

5 Assumes dividend reinvestment and does not reflect the effect of sales charges.

6 Total returns would have been lower had certain expenses not been reduced during the periods shown.

7 Not annualized.

8 Annualized.

See notes to financial statements

Semiannual report | Small Cap Fund  19 

F I N A N C I A L   S T A T E M E N T S

Financial highlights

CLASS I SHARES

Period ended  10-31-051  10-31-06  10-31-07  4-30-082 
 
Per share operating performance         
Net asset value, beginning of period  $11.21  $11.60  $12.73  $14.51 
Net investment loss3  (0.05)  (0.06)  (0.03)4  0.009 
Net realized and unrealized gain (loss)         
  on investments  0.44  1.24  1.81  (2.65) 
Total from investment operations  0.39  1.18  1.78  (2.65) 
Less distributions         
From net realized gain  —  (0.05)  —  (1.52) 
Net asset value, end of period  $11.60  $12.73  $14.51  $10.34 
Total return (%)5  3.486,7  10.20  13.98  (19.45)6,7 
 
Ratios and supplemental data         
Net assets, end of period         
  (in millions)  $34  $40  $19  $16 
Ratios (as a percentage of average net assets):         
  Expenses before reductions  1.188  1.08  1.08  1.148 
  Expenses net of fee waivers, if any  1.108  1.08  1.08  1.108 
  Expenses net of all fee waivers         
    and credits  1.108  1.08  1.08  1.108 
  Net investment income (loss)  (0.53)8  (0.47)  (0.24)4  0.008,9 
Portfolio turnover (%)  145  74  96  40 

1 Class I shares began operations on 12-6-04.

2 Semiannual period from 11-1-07 to 4-30-08. Unaudited.

3 Based on the average of the shares outstanding.

4 Net investment loss per share and ratio of net investment loss to average net assets reflects a special dividend received by the Fund which amounted to $0.01 per share and 0.06% of average net assets.

5 Assumes dividend reinvestment and does not reflect the effect of sales charges.

6 Total returns would have been lower had certain expenses not been reduced during the periods shown.

7 Not annualized.

8 Annualized.

9 Less than $0.01 per share and 0.005% of average net assets.

See notes to financial statements

20  Small Cap Fund | Semiannual report 

Notes to financial statements (unaudited)

Note 1
Organization

John Hancock Small Cap Fund (the Fund) is a diversified series of John Hancock Equity Trust (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the Fund is to seek capital appreciation.

The Trustees have authorized the issuance of multiple classes of shares of the Fund, designated as Class A, Class B, Class C and Class I 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 (SEC) 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. Class B shares will convert to Class A shares eight years after purchase.

The Fund is the accounting and performance successor to Independence Small Cap Portfolio, a diversified open-end management investment company organized as a Massachusetts business trust. On December 3, 2004, the Fund acquired substantially all the assets and assumed the liabilities of the former Independence Small Cap Portfolio pursuant to an agreement and plan of reorganization, in exchange for Class A shares of the Fund.

Note 2
Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Security valuation

The net asset value of Class A, Class B, Class C and Class I shares of the Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. Investments in John Hancock Cash Investment Trust (JHCIT), an affiliate of John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (MFC), are valued at their net asset value each business day. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading.

Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are generally determined as of such times. Occasionally, significant events

Semiannual report | Small Cap Fund  21 

that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

Joint repurchase agreement

Pursuant to an exemptive order issued by the SEC, the Fund, along with other registered investment companies having a management contract with the Adviser, 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.

Investment transactions

Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment security transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis.

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, and transfer agent fees for Class A, Class B, Class C and Class I shares 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.

Guarantees and indemnifications

Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

Expenses

The majority of expenses are directly identifiable to an individual fund. Trust 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 size 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 line of credit agreement with The Bank of New York Mellon (BNYM), the Swing Line Lender and Administrative Agent. This agreement enables the Fund to participate, with other funds managed by the Adviser, in an unsecured line of credit with BNYM, which permits borrowings of up to $150 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, 2008.

Securities lending

The Fund may lend portfolio securities from time to time in order to earn additional income. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the issuer of securities and to participate in any changes in their value. On the settlement date of the loan, the Fund receives cash collateral against the loaned securities and maintains the cash collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is deter-

22  Small Cap Fund | Semiannual report 

mined at the close of business of the Fund and any additional required cash collateral is delivered to the Fund on the next business day. Collateral received is invested in the JHCIT. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. The Fund may receive compensation for lending their securities either in the form of fees, guarantees, and/or by retaining a portion of interest on the investment of any cash received as collateral.

The Fund has entered into an agreement with Morgan Stanley & Co. Incorporated and MS Securities Services Inc. (collectively, Morgan Stanley) which permits the Fund to lend securities to Morgan Stanley on a principal basis. Morgan Stanley is the primary borrower of securities of the Fund. The risk of having one primary borrower of Fund securities (as opposed to several borrowers) is that should Morgan Stanley fail financially, all securities lent will be affected by the failure and by any delays in recovery of the securities (or in the rare event, loss of rights in the collateral).

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.

The Fund has adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109 (FIN 48), at the beginning of the Fund’s fiscal year. FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not have a material impact on the Fund’s financial statements. Each of the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

New accounting pronouncements

In September 2006, FASB Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. As of April 30, 2008, management does not believe the adoption of FAS 157 will have a material impact on the amounts reported in the financial statements.

In March 2008, FASB No. 161 (FAS 161), Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (FAS 133), was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 amends and expands the disclosure requirements of FAS 133 in order to provide financial statement users an understanding of a company’s use of derivative instruments, how derivative instruments are accounted for under FAS 133 and related interpretations and how these instruments affect a company’s financial position, performance, and cash flows. FAS 161 requires companies to disclose information detailing the objectives and strategies for using derivative instruments, the level of derivative activity entered into by the company, and any credit risk-related contingent features of the agreements. Management is currently evaluating the adoption of FAS 161 on the Fund’s financial statement disclosures.

Distribution of income and gains

The Fund records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. There were no distributions during the year ended October 31, 2007. 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,

Semiannual report | Small Cap Fund  23 

if any, are reported in the Fund’s financial statements as a return of capital.

Note 3
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 equivalent, on an annual basis, to the sum of: (a) 0.90% of the first $1,000,000,000 of the Fund’s average daily net asset value and (b) 0.85% of the Fund’s average daily net asset value in excess of $1,000,000,000. The effective rate for the period ended April 30, 2008 is 0.90% of the Fund’s average daily net asset value. The Adviser has a subadvisory agreement with Independence Investments LLC, a subsidiary of John Hancock Financial Services, Inc. The Fund is not responsible for payment of the subadvisory fees.

The Adviser has agreed to limit the Fund’s expenses, excluding distribution, and service fees and transfer agent fees, to not exceed 1.05% of the Fund’s average daily net assets with respect to Class A, Class B and Class C shares and net operating expenses to 1.65%, 2.35%, 2.35% and 1.10% of the average daily net asset value of Class A, Class B, Class C and Class I shares, respectively, until February 28, 2009. Accordingly, the net operating expenses were reduced $27,222 for the period ended April 30, 2008. The Adviser reserves the right to terminate this limitation in the future.

The Fund has a Distribution Agreement 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 1940 Act, to pay 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%, 1.00% and 1.00% of average daily net asset value of Class A, Class B and Class C, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority (formerly 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 shares are assessed up-front sales charges. During the period ended April 30, 2008, JH Funds received net up-front sales charges of $20,241with regard to sales of Class A shares. Of this amount, $2,568 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $16,171 was paid as sales commissions to unrelated broker-dealers and $1,502 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.

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, 2008, CDSCs received by JH Funds amounted to $13,787 for Class B shares and $2,257 for Class C shares.

The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of JHLICO. For Class A, Class B, Class C and Class I shares, the Fund pays a monthly transfer agent fee at an annual rate of 0.05%, 0.05%, 0.05% and 0.04%, respectively, of each class’s average daily net asset value, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket

24  Small Cap Fund | Semiannual report 

expenses, aggregated and allocated to each class on the basis of its relative net asset value. The Fund pays a monthly fee which is based on an annual rate of $15.00 for each Class A shareholder account, $17.50 for each Class B shareholder account, $16.50 for each Class C shareholder account and $15.00 for each Class I shareholder account. Signature Services had agreed to limit Class A, Class B and Class C transfer agent fee to 0.30% of each respective class’s average daily net asset value until February 28, 2009. Accordingly, the transfer agent expense for Class A, Class B and Class C shares was reduced by $8,760 for the period ended April 30, 2008. Signature Services reserves the right to terminate this limitation in the future.

In June 2007, the Fund began receiving earnings credits from its transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Fund’s transfer agent fees and out-of-pocket expenses. During the period ended April 30, 2008, the Fund’s transfer agent fees and out-of-pocket expenses were reduced by $5,508 for transfer agent credits earned.

Class level expenses for the period ended April 30, 2008 were as follows:

  Transfer  Distribution and 
Share class  agent fees  service fees 
 
Class A  $166,190  $155,212 
Class B  11,258  34,546 
Class C  43,857  137,229 
Class I  4,031  — 
Total  $225,336  $326,987 

The Fund has an agreement with the Adviser and affiliates to perform necessary tax, accounting, compliance, legal and other administrative services for the Fund. The compensation for the period amounted to $7,697 with an effective rate of 0.01% of the Fund’s average daily net asset value.

Mr. James R. Boyle is Chairman of the Adviser, as well as affiliated Trustee of the Fund, and is compensated by the Adviser and/or its affiliates. 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 Compensation 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.

Semiannual report | Small Cap Fund  25 

Note 4
Fund share transactions

This listing illustrates the number of Fund shares sold, reinvested and repurchased during the year ended October 31, 2007 and the period ended April 30, 2008, along with the corresponding dollar value.

  Year ended 10-31-07  Period ended 4-30-081 
  Shares  Amount  Shares  Amount 
Class A shares         
Sold  3,075,482  $40,976,492  718,792  $7,738,475 
Distributions reinvested  —  —  1,170,998  13,478,190 
Repurchased  (6,327,443)  (85,235,632)  (3,048,658)  (32,579,334) 
Net decrease  (3,251,961)  ($44,259,140)  (1,158,868)  ($11,362,669) 
 
Class B shares         
Sold  116,069  $1,512,755  14,496  $156,480 
Distributions reinvested  —  —  80,010  899,310 
Repurchased  (292,457)  (3,867,000)  (185,333)  (1,933,916) 
Net decrease  (176,388)  ($2,354,245)  (90,827)  ($878,126) 
 
Class C shares         
Sold  486,750  $6,336,575  82,182  $912,853 
Distributions reinvested  —  —  303,555  3,411,960 
Repurchased  (1,307,727)  (17,281,644)  (947,595)  (9,771,356) 
Net decrease  (820,977)  ($10,945,069)  (561,858)  ($5,446,543) 
 
Class I shares         
Sold  456,818  $6,020,492  134,966  $1,440,988 
Distributions reinvested  —  —  152,452  1,780,637 
Repurchased  (2,255,129)  (29,900,376)  (91,760)  (1,025,235) 
Net increase (decrease)  (1,798,311)  ($23,879,884)  195,658  $2,196,390 
 
Net decrease  (6,047,637)  ($81,438,338)  (1,615,895)  ($15,490,948) 

Note 5
Purchase and sale of securities

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, 2008, aggregated $60,964,270 and $95,337,470, respectively.

26  Small Cap Fund | Semiannual report 

Board Consideration of and
Continuation of Investment Advisory
Agreement and Subadvisory
Agreement: John Hancock
Small Cap Fund

The Investment Company Act of 1940 (the 1940 Act) requires the Board of Trustees (the Board) of John Hancock Equity Trust (the Trust), including a majority of the Trustees who have no direct or indirect interest in the investment advisory agreement and are not “interested persons” of the Trust, as defined in the 1940 Act (the Independent Trustees), annually to meet in person to review and consider the continuation of: (i) the investment advisory agreement (the Advisory Agreement) with John Hancock Advisers, LLC (the Adviser) and (ii) the investment subadvisory agreement (the Subadvisory Agreement) with Independence Investments LLC (the Subadviser) for the John Hancock Small Cap Fund (the Fund). The Advisory Agreement with the Adviser and the Subadvisory Agreement with the Subadviser are collectively referred to as the Advisory Agreements.

At meetings held on May 7 and June 4–5, 2007, the Board considered the factors and reached the conclusions described below relating to the selection of the Adviser and Subadviser and the continuation of the Advisory Agreements. During such meetings, the Board’s Contracts/ Operations Committee and the Independent Trustees also met in executive sessions with their independent legal counsel.

In evaluating the Advisory Agreements, the Board, including the Contracts/Operations Committee and the Independent Trustees, reviewed a broad range of information requested for this purpose by the Independent Trustees, including: (i) the investment performance of the Fund relative to a category of relevant funds (the Category) and a peer group of comparable funds (the Peer Group) each selected by Morningstar, Inc. (Morningstar), an independent provider of investment company data, for a range of periods ended December 31, 2006; (ii) advisory and other fees incurred by, and the expense ratios of, the Fund relative to a Category and a Peer Group; (iii) the advisory fees of comparable portfolios of other clients of the Adviser and the Subadviser; (iv) the Adviser’s financial results and condition, including its and certain of its affiliates’ profitability from services performed for the Fund; (v) breakpoints in the Fund’s and the Peer Group’s fees, and information about economies of scale; (vi) the Adviser’s and Subadviser’s record of compliance with applicable laws and regulations, with the Fund’s investment policies and restrictions, and with the applicable Code of Ethics, and the structure and responsibilities of the Adviser’s and Subadviser’s compliance department; (vii) the background and experience of senior management and investment professionals; and (viii) the nature, cost and character of advisory and non-investment management services provided by the Adviser and its affiliates and by the Subadviser.

The Independent Trustees considered the legal advice of independent legal counsel and relied on their own business judgment in determining the factors to be considered in evaluating the materials that were presented to them and the weight to be given to each such factor. The Board’s review and conclusions were based on a comprehensive consideration of all information presented to the Board and not the result of any single controlling factor. They principally considered performance and other information from Morningstar as of December 31, 2006. The Board also considered updated performance information provided to it by the Adviser or Subadviser at the May and June 2007 meetings. Performance and other information may be quite different as of the date of this shareholders report. The key factors considered by the Board and the conclusions reached are described below.

Nature, extent and quality of services

The Board considered the ability of the Adviser and the Subadviser, based on their resources, reputation and other attributes, to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board considered the investment philosophy, research and investment decision-making processes of the Adviser and Subadviser. The Board further considered the culture of compliance, resources dedicated to compliance,

Semiannual report | Small Cap Fund  27 

compliance programs and compliance records of the Adviser and Subadviser. In addition, the Board took into account the administrative and other non-advisory services provided to the Fund by the Adviser and its affiliates.

Based on the above factors, together with those referenced below, the Board concluded that, within the context of its full deliberations, the nature, extent and quality of the investment advisory services provided to the Fund by the Adviser and Subadviser supported renewal of the Advisory Agreements.

Fund performance

The Board considered the performance results for the Fund over various time periods ended December 31, 2006. The Board also considered these results in comparison to the performance of the Category, as well as the Fund’s Peer Group and benchmark index. Morningstar determined the Category and Peer Group for the Fund. The Board reviewed with a representative of Morningstar the methodology used by Morningstar to select the funds in the Category and the Peer Group.

The Board noted that the Fund’s performance during the 3- and 5-year periods under review was higher than the performance of the Peer Group and Category medians. The Board noted that the Fund’s performance during those periods was lower than its benchmark index, the Russell 2000 Index, as was the performance of the Peer Group and Category medians. The Board noted that the Fund’s performance during the 1-year period was lower than the performance of the Peer Group and Category medians, and its benchmark index. The Adviser discussed with the Board factors that contributed to the Fund’s underperformance. The Board indicated its intent to continue to monitor the Fund’s performance trends.

Investment advisory fee and subadvisory fee rates and expenses

The Board reviewed and considered the contractual investment advisory fee rate payable by the Fund to the Adviser for investment advisory services (the Advisory Agreement Rate). The Board received and considered information comparing the Advisory Agreement Rate with the advisory fees for the Category and Peer Group. The Board noted that the Advisory Agreement Rate was lower than the median rate of the Category and not appreciably higher than the median rate of the Peer Group.

The Board received and considered expense information regarding the Fund’s various components, including advisory fees, distribution and fees other than advisory and distribution fees, including transfer agent fees, custodian fees and other miscellaneous fees (e.g., fees for accounting and legal services). The Board considered comparisons of these expenses to the Peer Group median. The Board also received and considered expense information regarding the Fund’s total operating expense ratio (Gross Expense Ratio) and total operating expense ratio after taking the fee waiver arrangement applicable to the Advisory Agreement Rate into account (Net Expense Ratio). The Board received and considered information comparing the Gross Expense Ratio and Net Expense Ratio of the Fund to that of the Peer Group and Category medians. The Board noted that the Fund’s Gross and Net Expense Ratio was higher than the median of its Category, but lower than the Peer Group median. The Board also noted that the Fund’s Net Expense Ratio was higher than the Category median, but not appreciably higher than the Peer Group median.

The Adviser also discussed the Morningstar data and rankings, and other relevant information, for the Fund. Based on the above-referenced considerations and other factors, the Board concluded that the Fund’s overall performance and expenses supported the re-approval of the Advisory Agreements.

The Board also received information about the investment subadvisory fee rate (the Subadvisory Agreement Rate) payable by the Adviser to the Subadviser for investment sub-advisory services. The Board concluded that the Subadvisory Agreement Rate was fair and equitable, based on its consideration of the factors described here.

Profitability

The Board received and considered a detailed profitability analysis of the Adviser based on the Advisory Agreements, as well as on

28  Small Cap Fund | Semiannual report 

other relationships between the Fund and the Adviser and its affiliates. The Board also considered a comparison of the Adviser’s profitability to that of other similar investment advisers whose profitability information is publicly available. The Board concluded that, in light of the costs of providing investment management and other services to the Fund, the profits and other ancillary benefits reported by the Adviser were not unreasonable.

The Board did not consider profitability information with respect to the Subadviser, which is not affiliated with the Adviser. The Board considered that the Subadvisory Rate paid to the Subadviser had been negotiated by the Adviser on an arm’s length basis and that the Subadviser’s separate profitability from its relationship with the Fund was not a material factor in determining whether to renew the agreement.

Economies of scale

The Board received and considered general information regarding economies of scale with respect to the management of the Fund, including the Fund’s ability to appropriately benefit from economies of scale under the Fund’s fee structure. The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of the Adviser’s costs are not specific to individual Funds, but rather are incurred across a variety of products and services.

To the extent the Board and the Adviser were able to identify actual or potential economies of scale from Fund-specific or allocated expenses, in order to ensure that any such economies continue to be reasonably shared with the Fund as its assets increase, the Adviser and the Board agreed to continue the existing breakpoints to the Advisory Agreement Rate.

Information about services to other clients

The Board also received information about the nature, extent and quality of services and fee rates offered by the Adviser and Subadviser to their other clients, including other registered investment companies, institutional investors and separate accounts. The Board concluded that the Advisory Agreement Rate and the Subadvisory Agreement Rate were not unreasonable, taking into account fee rates offered to others by the Adviser and Subadviser, respectively, after giving effect to differences in services.

Other benefits to the Adviser

The Board received information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund. Such benefits could include, among others, benefits directly attributable to the relationship of the Adviser with the Fund and benefits potentially derived from an increase in the business of the Adviser as a result of its relationship with the Fund (such as the ability to market to shareholders other financial products offered by the Adviser and its affiliates).

The Board also considered the effectiveness of the Adviser’s, Subadviser’s and Fund’s policies and procedures for complying with the requirements of the federal securities laws, including those relating to best execution of portfolio transactions and brokerage allocation.

Other factors and broader review

As discussed above, the Board reviewed detailed materials received from the Adviser and Subadviser as part of the annual re-approval process. The Board also regularly reviews and assesses the quality of the services that the Fund receives throughout the year. In this regard, the Board reviews reports of the Adviser at least quarterly, which include, among other things, a detailed portfolio review, detailed fund performance reports and compliance reports. In addition, the Board meets with portfolio managers and senior investment officers at various times throughout the year.

After considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board concluded that approval of the continuation of the Advisory Agreements for the Fund was in the best interest of the Fund and its shareholders. Accordingly, the Board unanimously approved the continuation of the Advisory Agreements.

Semiannual report | Small Cap Fund  29 

For more information

The Fund’s proxy voting policies, procedures and records are available without charge, upon request:

By phone  On the Fund’s Web site  On the SEC’s Web site 
1-800-225-5291  www.jhfunds.com/proxy  www.sec.gov 
 
Trustees  Charles A. Rizzo  Custodian 
James F. Carlin, Chairman  Chief Financial Officer  Bank of New York Mellon 
James R. Boyle†   One Wall Street
William H. Cunningham  Gordon M. Shone  New York, NY 10286 
Charles L. Ladner*   Treasurer    
Dr. John A. Moore*   Transfer agent 
Patti McGill Peterson*  John G. Vrysen  John Hancock Signature 
Steven R. Pruchansky   Chief Operating Officer   Services, Inc.
*Members of the Audit Committee      P.O. Box 9510    
†Non-Independent Trustee  Investment adviser  Portsmouth, NH 03802-9510  
   John Hancock Advisers, LLC   
Officers  601 Congress Street  Legal counsel 
Keith F. Hartstein   Boston, MA 02210-2805  Kirkpatrick & Lockhart  
President and     Preston Gates Ellis LLP
Chief Executive Officer  Subadviser  One Lincoln Street   
   Independence Investments LLC  Boston, MA 02111-2950   
Thomas M. Kinzler  160 Federal Street   
Secretary and Chief Legal Officer   Boston, MA 02110   
   
Francis V. Knox, Jr.   Principal distributor   
Chief Compliance Officer  John Hancock Funds, LLC   
  601 Congress Street   
  Boston, MA 02210-2805   

How to contact us   
 
Internet  www.jhfunds.com   
 
Mail  Regular mail:  Express mail: 
  John Hancock Signature  John Hancock Signature 
    Services, Inc.    Services, Inc. 
  P.O. Box 9510  Mutual Fund Image Operations 
  Portsmouth, NH 03802-9510  164 Corporate Drive 
    Portsmouth, NH 03801 
 
Phone  Customer service representatives  1-800-225-5291 
  EASI-Line  1-800-338-8080 
  TDD line  1-800-554-6713 

A listing of month-end portfolio holdings is available on our Web site, www.jhfunds.com. A more detailed portfolio holdings summary is available on a quarterly basis 60 days after the fiscal quarter on our Web site or upon request by calling 1-800-225-5291, or on the SEC’s Web site, www.sec.gov.

30  Small Cap Fund | Semiannual report 


1-800-225-5291
1-800-554-6713 TDD
1-800-338-8080 EASI-Line
www.jhfunds.com

Now available: electronic delivery
www.jhfunds.com/edelivery

This report is for the information of the shareholders of John Hancock Small Cap Fund.  820SA  4/08 
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.    6/08 

ITEM 2. CODE OF ETHICS.

As of the end of the period, April 30, 2008, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the “Senior Financial Officers”). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

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 at this time.

ITEM 6. SCHEDULE OF INVESTMENTS.

     (a) Not applicable.

     (b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There were no material changes to previously disclosed John Hancock Funds – Governance Committee Charter.

ITEM 11. CONTROLS AND PROCEDURES.

(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Code of Ethics for Senior Financial Officers is attached.

(a)(2) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.

(b) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.

(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached “John Hancock Funds – Governance 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: /s/ Keith F. Hartstein
-------------------------------------
Keith F. Hartstein
President and Chief Executive Officer

Date: June 19, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Keith F. Hartstein
-------------------------------------
Keith F. Hartstein
President and Chief Executive Officer

Date: June 19, 2008

By: /s/ Charles A. Rizzo
-------------------------------------
Charles A. Rizzo
Chief Financial Officer

Date: June 19, 2008