John Hancock

Income Securities Trust

Ticker: JHS Semiannual report 4/30/15

A message to shareholders

Dear fellow shareholder,

U.S. economic growth continued, despite recent weakness caused largely by the harsh winter weather. The market expansion that began in 2009 so far remains intact. Positive economic and business news has translated into good news for U.S. investors, with continued solid results for a range of U.S. equity indexes in recent months. Many fixed-income indexes have also seen positive returns in this environment.

Outside of the United States, economies are struggling to replicate the kind of success we have enjoyed at home. Central banks across Europe and Asia have announced dramatic monetary policy measures to promote economic activity—similar to the monetary policy activity of the U.S. Federal Reserve in recent years. As was the case in the United States beginning in 2009, many international markets have rallied in advance of sustained economic progress. China's stock market in particular has delivered extraordinary gains. In fact, our network of asset managers and research firms believes that government and central bank stimulus may prove to be the biggest driver of international market returns in 2015.

While maintaining adequate portfolio diversification is vital in any market environment, we believe it is especially important today given the unprecedented central bank interventions of the past few years and the very real geopolitical risk around the world. The uncertainty of today's global financial markets is one of the reasons we at John Hancock Investments believe it is important for long-term portfolios to have exposure to a diverse range of investments. Now may be a good time to discuss the resilience of your portfolio with your financial advisor.

On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.

Sincerely,

Andrew G. Arnott
President and Chief Executive Officer
John Hancock Investments

This commentary reflects the CEO's views as of April 30, 2015. They are subject to change at any time. For more up-to-date information, you can visit our website at jhinvestments.com.

John Hancock
Income Securities Trust

Table of contents

2 Your fund at a glance

4 Discussion of fund performance

8 Fund's investments

28 Financial statements

32 Financial highlights

33 Notes to financial statements

40 Additional information

41 Shareholder meeting

42 More information

Your fund at a glance

INVESTMENT OBJECTIVE

The fund seeks to generate a high level of current income consistent with prudent investment risk.

AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/15(%)

The Barclays U.S. Government/Credit Bond Index is an unmanaged index of U.S. government bonds, U.S. corporate bonds, and Yankee bonds.

It is not possible to invest directly in an index.

The fund's most recent performance and annualized distribution rate can be found at www.jhinvestments.com.

The performance data contained within this material represents past performance, which does not guarantee future results.

PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS

Modest gains for the bond market

An environment of modest growth and low inflation helped offset concerns about the potential timing of the U.S. Federal Reserve's first interest-rate increase.

Positions in higher-yielding investment-grade bonds helped

Our decision to favor corporate bonds over U.S. Treasuries and agency mortgage-backed securities was a positive for performance.

Allocation to high-yield bonds detracted

While high-yield bonds finished the period with a gain, they lagged investment-grade bonds.

PORTFOLIO COMPOSITION AS OF 4/30/15 (%)

A note about risks

As is the case with all closed-end funds, shares of this fund may trade at a discount or a premium to the fund's net asset value (NAV). An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested. There is no guarantee prior distribution levels will be maintained, and distributions may include a substantial return of capital, which may increase the potential tax gain or reduce the potential tax loss of a subsequent sale of shares of the fund. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Investments in higher-yielding, lower-rated securities include a higher risk of default. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly, which may affect fund performance. Certain market conditions, including reduced trading volume, heightened volatility, and rising interest rates, may impair liquidity, the ability of the fund to sell securities or close derivative positions at advantageous prices. The fund's use of leverage creates additional risks, including greater volatility of the fund's NAV, market price, and returns. There is no assurance that the fund's leverage strategy will be successful.

Discussion of fund performance

An interview with Portfolio Manager Jeffrey N. Given, CFA, John Hancock Asset Management a division of Manulife Asset Management (US) LLC

Jeffrey N. Given, CFA
Portfolio Manager
John Hancock Asset Management

Can you describe the market environment of the past six months?

The U.S. bond market experienced a modest gain during the six-month reporting period, as gauged by the 2.12% return of the fund's benchmark, the Barclays U.S. Government/Credit Bond Index. On balance, the investment backdrop proved favorable for the bond market. Sluggish growth in the European economy, together with the European Central Bank's announcement of an expanded quantitative easing policy, caused yields to fall significantly across the region (as prices rose). The strength in the European debt markets fed through to the United States, where the relatively high yields on U.S. Treasuries attracted buying interest from global investors. The U.S. market was also helped by the backdrop of modest economic growth and low inflation, which gradually boosted investor confidence that the U.S. Federal Reserve (Fed) could avoid raising interest rates until late in 2015. In this environment, the yield on the 10-year U.S. Treasury note declined from 2.35% on October 31, 2014, to 2.05% on April 30, 2015.

Falling government bond yields, in conjunction with the continued strength in corporate balance sheets, fueled positive performance for investment-grade corporate bonds during the six-month period. High-yield bonds (those rated below investment grade) also finished with a gain, but they lagged their higher-rated counterparts due to the impact of falling oil prices on many energy issuers in the asset class during late 2014. While energy prices subsequently recovered—fueling a concurrent improvement in the high-yield market—the rebound was not enough to make up for the downturn of November and December.

What factors aided the fund's performance results?

The fund finished the semiannual period with a positive total return and outperformed its benchmark.

The fund's performance was helped by its substantial overweight position in investment-grade corporate bonds. We favored this sector on the belief that it offered a solid yield advantage and was positioned to benefit from the favorable credit backdrop. Within the corporate space, the fund was overweight in the financials sector. Unlike companies in the industrials and utilities sectors, regulations prevent financial companies from taking on excessive debt. In many cases, financial firms can't even raise the dividends on their stocks without permission from the Fed. In our view,

"The fund's performance was helped by its substantial overweight position in investment-grade corporate bonds."

these factors mean that there is little risk that companies in the financials sector will take actions that are unfavorable for debt investors.

The investment-grade portion of the fund also holds an allocation to securitized debt, a category that includes mortgage-backed securities, asset-backed securities, and collateralized mortgage obligations. In general, we believed these investments offered a better risk/return profile than either U.S. Treasuries or agency mortgage-backed securities. This aspect of the fund's positioning made a positive contribution to the fund's six-month results.

The fund's modest allocation to common stocks also contributed to performance, as U.S. large-cap stocks experienced positive returns during the period. The fund's equity portfolio was aided by its position in Kraft Foods Group, Inc., which gained nearly 50% on news that the company was

QUALITY COMPOSITION AS OF 4/30/15 (%)

"The fund's allocation to high-yield bonds, while a positive for absolute returns, detracted from relative performance..."

merging with H.J. Heinz Company. Positions in Stanley Black & Decker, Inc. and the French pharmaceutical giant Sanofi SA further helped performance within the fund's equity allocation.

The fund's yield curve positioning was an additional positive. We added value by tilting toward longer-term bonds over intermediate-term debt, which enabled the fund to capitalize on the flattening of the yield curve.

What factors detracted from performance?

The fund's allocation to high-yield bonds, while a positive for absolute returns, detracted from relative performance at a time in which the asset class lagged investment-grade debt. We continue to see opportunities in high yield, however, as we believe its yield advantage provides a foundation for above-average total returns in a low-yield environment.

In terms of positioning within high yield, the largest change was our decision to reduce the fund's exposure to the energy sector in order to reduce the potential impact of volatility in oil prices. We continued to hold a positive view on the specific securities held in the fund, however, since the portfolio's energy exposure is tilted toward companies that aren't dependent on prices, such as pipeline operators. Revenues for these companies are determined not by the price of oil, but the overall volume of oil and natural gas being moved around the country. Given that production is remaining stable, we believe pipelines can maintain steady earnings despite the volatility in energy prices.

COUNTRY COMPOSITION AS OF 4/30/15 (%)

United States 88.6

France 1.8

United Kingdom 1.4

Luxembourg 1.2

Netherlands 1.1

Canada 0.9

Cayman Islands 0.7

Mexico 0.7

Japan 0.4

Ireland 0.3

Other countries 2.9

Total 100.0

As a percentage of total investments.

How would you characterize your portfolio activity during the past six months?

We continued to manage fund turnover, as we have in recent years. While lower portfolio activity is partially the result of our comfort with the fund's current positioning, it also reflects the generally declining volatility in the credit markets. Our search for opportunities created by short-term market disruptions is a key aspect of our approach, but there is less latitude to put this strategy to work when volatility is low. As a result, we did not make major shifts among asset classes. However, we did continue to employ our opportunistic approach at the individual security level.

In the fund's investment-grade segment, we continued to favor assets such as nonagency mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities, all of which offer a yield advantage relative to U.S. Treasuries and agency mortgages. We also retained a significant weighting in investment-grade corporate bonds, with an emphasis on bonds that offer attractive yields for the associated risks. We believe both aspects of our approach will help augment the fund's income over time, a potentially important consideration at a time of low prevailing yields.

What are some of the reasons behind the fund's current positioning?

While investors have been focusing a great deal of attention on the timing of the Fed's first interest-rate increase, we don't expect that Fed policy will be a significant issue for the market aside from its potential impact on short-term volatility. The backdrop of low inflation and measured growth should enable the Fed to employ a gradual, well-telegraphed approach, similar to its cycle of rate increases in 2004-2006. We expect that this will contribute to a continuation of the current low-return environment and we continue to seek the most compelling total return opportunities in the higher-yielding segments of the market.

MANAGED BY

Jeffrey N. Given, CFA
On the fund since 2002
Investing since 1993

Howard C. Greene, CFA
On the fund since 2002
Investing since 1979

The views expressed in this report are exclusively those of Jeffrey N. Given, CFA, John Hancock Asset Management, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund's investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

Fund's investments

As of 4-30-15 (unaudited)

Rate (%) Maturity date Par value^ Value

Corporate bonds 71.5% (48.3% of Total investments) $133,174,878

(Cost $127,630,868)

Consumer discretionary 8.9% 16,525,540

Auto components 1.1%

Dana Holding Corp. (Z) 6.000 09-15-23 395,000 419,688

Delphi Corp. (Z) 5.000 02-15-23 1,005,000 1,082,860

Stackpole International Intermediate Company SA (S)(Z) 7.750 10-15-21 245,000 243,775

ZF North America Capital, Inc. (S) 4.750 04-29-25 280,000 280,700

Automobiles 2.9%

Ford Motor Company (Z) 4.750 01-15-43 145,000 151,452

Ford Motor Credit Company LLC (Z) 5.875 08-02-21 1,803,000 2,107,586

Ford Motor Credit Company LLC (Z) 8.000 12-15-16 330,000 364,225

General Motors Company (Z) 4.875 10-02-23 445,000 480,120

General Motors Company (Z) 6.250 10-02-43 380,000 453,389

General Motors Financial Company, Inc. 3.450 04-10-22 430,000 427,185

General Motors Financial Company, Inc. (Z) 4.000 01-15-25 550,000 553,630

General Motors Financial Company, Inc. (Z) 4.375 09-25-21 315,000 334,650

Nissan Motor Acceptance Corp. (S)(Z) 1.950 09-12-17 490,000 497,850

Hotels, restaurants and leisure 0.9%

CCM Merger, Inc. (S)(Z) 9.125 05-01-19 380,000 412,775

International Game Technology PLC (S) 6.500 02-15-25 225,000 218,250

MGM Resorts International (Z) 6.000 03-15-23 455,000 470,925

Seminole Tribe of Florida, Inc. (S)(Z) 6.535 10-01-20 575,000 623,875

Waterford Gaming LLC (H)(S) 8.625 09-15-49 99,739 0

Household durables 0.2%

Argos Merger Sub, Inc. (S)(Z) 7.125 03-15-23 120,000 126,000

DR Horton, Inc. (Z) 4.000 02-15-20 165,000 167,475

Internet and catalog retail 0.8%

Amazon.com, Inc. (Z) 4.950 12-05-44 515,000 546,473

QVC, Inc. (Z) 4.375 03-15-23 325,000 328,748

QVC, Inc. (Z) 5.125 07-02-22 255,000 268,303

QVC, Inc. (Z) 5.450 08-15-34 315,000 303,940

Media 1.9%

21st Century Fox America, Inc. 6.150 03-01-37 165,000 202,239

21st Century Fox America, Inc. 6.400 12-15-35 150,000 192,213

21st Century Fox America, Inc. 7.750 01-20-24 1,020,000 1,312,704

Altice Financing SA (S)(Z) 6.625 02-15-23 200,000 206,000

AMC Entertainment, Inc. (Z) 5.875 02-15-22 390,000 404,625

Sirius XM Radio, Inc. (S)(Z) 5.250 08-15-22 845,000 893,588

Time Warner Cable, Inc. (Z) 8.250 04-01-19 350,000 411,072

8SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Consumer discretionary (continued)

Multiline retail 0.5%

Family Tree Escrow LLC (S)(Z) 5.750 03-01-23 225,000 $236,250

Macy's Retail Holdings, Inc. (Z) 7.875 08-15-36 444,000 479,025

Tops Holding II Corp. (Z) 8.750 06-15-18 235,000 229,125

Specialty retail 0.4%

AutoNation, Inc. (Z) 5.500 02-01-20 655,000 720,500

Textiles, apparel and luxury goods 0.2%

Hot Topic, Inc. (S)(Z) 9.250 06-15-21 345,000 374,325

Consumer staples 1.7% 3,199,683

Beverages 0.5%

Constellation Brands, Inc. (Z) 4.250 05-01-23 355,000 365,206

Constellation Brands, Inc. (Z) 4.750 11-15-24 180,000 190,800

Pernod-Ricard SA (S)(Z) 5.750 04-07-21 325,000 374,946

Food and staples retailing 0.0%

Rite Aid Corp. (S) 6.125 04-01-23 65,000 67,356

Food products 0.5%

Bunge, Ltd. Finance Corp. (Z) 8.500 06-15-19 389,000 476,965

HJ Heinz Company (S) 4.875 02-15-25 430,000 469,560

Personal products 0.2%

Prestige Brands, Inc. (S)(Z) 5.375 12-15-21 260,000 263,250

Tobacco 0.5%

Alliance One International, Inc. (Z) 9.875 07-15-21 820,000 713,400

Vector Group, Ltd. (Z) 7.750 02-15-21 260,000 278,200

Energy 9.1% 16,994,659

Energy equipment and services 1.0%

Nostrum Oil & Gas Finance BV (S)(Z) 6.375 02-14-19 345,000 328,613

RKI Exploration & Production LLC (S)(Z) 8.500 08-01-21 220,000 217,800

Rowan Companies, Inc. (Z) 4.875 06-01-22 330,000 320,752

SESI LLC (Z) 7.125 12-15-21 576,000 599,040

Teine Energy, Ltd. (S)(Z) 6.875 09-30-22 245,000 243,163

TerraForm Power Operating LLC (S)(Z) 5.875 02-01-23 110,000 114,675

Oil, gas and consumable fuels 8.1%

California Resources Corp. 5.500 09-15-21 250,000 236,875

California Resources Corp. 6.000 11-15-24 540,000 508,275

Chesapeake Energy Corp. (Z) 5.750 03-15-23 485,000 465,600

Cimarex Energy Company (Z) 4.375 06-01-24 515,000 521,438

CNOOC Finance 2013, Ltd. (Z) 3.000 05-09-23 420,000 406,853

Continental Resources, Inc. (Z) 5.000 09-15-22 795,000 806,925

CSI Compressco LP (S)(Z) 7.250 08-15-22 235,000 213,850

DCP Midstream LLC (S) 9.750 03-15-19 405,000 462,563

SEE NOTES TO FINANCIAL STATEMENTS9

Rate (%) Maturity date Par value^ Value

Energy (continued)

Oil, gas and consumable fuels (continued)

DCP Midstream LLC (5.850% to 5-21-23, then 3 month LIBOR + 3.850%) (S)(Z) 5.850 05-21-43 370,000 $279,350

DCP Midstream Operating LP (Z) 3.875 03-15-23 225,000 207,012

Denbury Resources, Inc. (Z) 5.500 05-01-22 255,000 241,613

Ecopetrol SA (Z) 5.875 09-18-23 190,000 206,388

Energy Transfer Partners LP 5.150 03-15-45 345,000 336,100

Energy Transfer Partners LP (Z) 9.700 03-15-19 425,000 532,278

Enterprise Products Operating LLC (7.000% to 6-1-17, then 3 month LIBOR + 2.777%) (Z) 7.000 06-01-67 695,000 705,425

Enterprise Products Operating LLC (8.375% to 8-1-16, then 3 month LIBOR + 3.708%) (Z) 8.375 08-01-66 440,000 467,588

EP Energy LLC (Z) 7.750 09-01-22 195,000 204,750

EV Energy Partners LP (Z) 8.000 04-15-19 400,000 388,000

Freeport-McMoran Oil & Gas LLC (Z) 6.750 02-01-22 458,000 489,602

Freeport-McMoran Oil & Gas LLC (Z) 6.875 02-15-23 156,000 167,700

FTS International, Inc. (S)(Z) 6.250 05-01-22 175,000 139,125

Halcon Resources Corp. (Z) 8.875 05-15-21 295,000 230,395

Jones Energy Holdings LLC (Z) 6.750 04-01-22 150,000 148,500

Kerr-McGee Corp. (Z) 6.950 07-01-24 335,000 420,049

Kinder Morgan Energy Partners LP (Z) 7.750 03-15-32 195,000 234,522

Kinder Morgan, Inc. 5.550 06-01-45 355,000 354,315

Kosmos Energy, Ltd. (S)(Z) 7.875 08-01-21 220,000 213,400

Lukoil International Finance BV (S)(Z) 3.416 04-24-18 675,000 635,513

MarkWest Energy Partners LP (Z) 4.875 12-01-24 160,000 165,504

MPLX LP (Z) 4.000 02-15-25 150,000 150,938

Newfield Exploration Company (Z) 5.750 01-30-22 260,000 275,600

Pacific Rubiales Energy Corp. (S)(Z) 5.375 01-26-19 335,000 262,205

Petro-Canada (Z) 9.250 10-15-21 1,000,000 1,354,212

Petroleos Mexicanos (S)(Z) 4.250 01-15-25 125,000 125,750

Petroleos Mexicanos (Z) 4.875 01-24-22 275,000 290,813

Regency Energy Partners LP (Z) 5.000 10-01-22 95,000 101,413

Regency Energy Partners LP (Z) 5.500 04-15-23 480,000 508,800

Regency Energy Partners LP (Z) 5.875 03-01-22 90,000 100,125

Summit Midstream Holdings LLC (Z) 7.500 07-01-21 150,000 156,000

Tullow Oil PLC (S)(Z) 6.000 11-01-20 230,000 211,600

Tullow Oil PLC (S)(Z) 6.250 04-15-22 255,000 233,325

Williams Partners LP (Z) 4.875 05-15-23 185,000 187,695

Williams Partners LP (Z) 4.875 03-15-24 690,000 707,319

WPX Energy, Inc. (Z) 5.250 09-15-24 125,000 115,313

Financials 28.0% 52,119,257

Banks 10.9%

Banco do Brasil SA (6.250% to 4-15-24, then 10 Year U.S. Treasury + 4.398%) (Q)(S)(Z) 6.250 04-15-24 470,000 347,894

10SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Financials (continued)

Banks (continued)

Bank of America Corp. (Z) 3.300 01-11-23 260,000 $260,509

Bank of America Corp. 3.950 04-21-25 135,000 133,133

Bank of America Corp. (Z) 4.200 08-26-24 280,000 282,988

Bank of America Corp. (Z) 4.250 10-22-26 265,000 265,700

Bank of America Corp. (Z) 5.000 05-13-21 670,000 750,923

Bank of America Corp. (Z) 6.875 04-25-18 1,000,000 1,142,697

Bank of America Corp. (6.250% to 9-5-24, then 3 month LIBOR + 3.705%) (Q)(Z) 6.250 09-05-24 470,000 481,456

Bank of America Corp. (8.000% to 1-30-18, then 3 month LIBOR + 3.630%) (Q)(Z) 8.000 01-30-18 435,000 464,906

Barclays Bank PLC (S)(Z) 10.179 06-12-21 575,000 776,133

BPCE SA (S)(Z) 4.500 03-15-25 475,000 479,103

BPCE SA (S)(Z) 5.700 10-22-23 645,000 704,074

Commerzbank AG (S)(Z) 8.125 09-19-23 350,000 422,625

Credit Agricole SA (6.625% to 9-23-19, then 5 Year U.S. Swap Rate + 4.697%) (Q)(S)(Z) 6.625 09-23-19 450,000 454,708

Credit Agricole SA (7.875% to 1-23-24, then 5 year U.S. Swap Rate + 4.898%) (Q)(S)(Z) 7.875 01-23-24 600,000 641,597

Credit Agricole SA (8.125% to 9-19-18, then 5 Year U.S. Swap Rate + 6.283%) (S)(Z) 8.125 09-19-33 250,000 282,188

Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR + 3.033%) (Q)(Z) 5.100 06-30-23 420,000 399,840

HBOS PLC (S)(Z) 6.750 05-21-18 825,000 922,449

HSBC Holdings PLC (6.375% to 9-17-24, then 5 Year U.S. ISDAFIX + 3.705%) (Q)(Z) 6.375 09-17-24 200,000 206,800

ING Bank NV (S)(Z) 5.800 09-25-23 500,000 562,801

JPMorgan Chase & Co. (Z) 4.625 05-10-21 895,000 992,137

JPMorgan Chase & Co. (5.000% to 7-1-19, then 3 month LIBOR + 3.320%) (Q)(Z) 5.000 07-01-19 520,000 510,900

JPMorgan Chase & Co. (5.150% to 5-1-23, then 3 month LIBOR + 3.250%) (Q) 5.150 05-01-23 375,000 363,516

JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (Q)(Z) 6.750 02-01-24 805,000 879,302

JPMorgan Chase & Co. (7.900% to 4-30-18, then 3 month LIBOR + 3.470%) (Q)(Z) 7.900 04-30-18 655,000 697,575

Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (Q)(Z) 7.500 06-27-24 385,000 410,988

Manufacturers & Traders Trust Company (5.629% to 12-1-16, then 3 month LIBOR + 6.400%) (Z) 5.629 12-01-21 485,000 501,733

Mizuho Financial Group Cayman 3, Ltd. (S)(Z) 4.600 03-27-24 435,000 463,560

Rabobank Nederland NV (Z) 3.875 02-08-22 905,000 968,496

Societe Generale SA (8.250% to 11-29-18, then 5 Year U.S. Swap Rate + 6.394%) (Q) 8.250 11-29-18 385,000 409,063

Swedbank AB (S)(Z) 2.125 09-29-17 460,000 466,733

Synovus Financial Corp. (Z) 7.875 02-15-19 200,000 226,000

SEE NOTES TO FINANCIAL STATEMENTS11

Rate (%) Maturity date Par value^ Value

Financials (continued)

Banks (continued)

The PNC Financial Services Group, Inc. (P)(Q)(Z) 4.482 05-04-15 250,000 $250,395

The PNC Financial Services Group, Inc. (4.850% to 6-1-23, then 3 month LIBOR + 3.040%) (Q)(Z) 4.850 06-01-23 310,000 301,863

The PNC Financial Services Group, Inc. (6.750% to 8-1-21, then 3 month LIBOR + 3.678%) (Q)(Z) 6.750 08-01-21 520,000 584,480

Wells Fargo & Company (5.875% to 6-15-25, then 3 month LIBOR + 3.990%) (Q)(Z) 5.875 06-15-25 315,000 334,294

Wells Fargo & Company (5.900% to 6-15-24, then 3 month LIBOR + 3.110%) (Q)(Z) 5.900 06-15-24 655,000 686,113

Wells Fargo & Company, Series K (7.980% to 3-15-18, then 3 month LIBOR + 3.770%) (Q)(Z) 7.980 03-15-18 750,000 827,813

Wells Fargo Bank NA (Z) 5.850 02-01-37 390,000 487,355

Capital markets 4.8%

Ares Capital Corp. (Z) 3.875 01-15-20 430,000 437,226

Credit Suisse Group AG (7.500% to 12-11-23, then 5 year U.S. Swap Rate + 4.598%) (Q)(S)(Z) 7.500 12-11-23 295,000 315,650

FS Investment Corp. (Z) 4.000 07-15-19 435,000 440,768

Jefferies Group LLC (Z) 6.875 04-15-21 1,005,000 1,143,055

Jefferies Group LLC (Z) 8.500 07-15-19 235,000 280,894

Morgan Stanley (Z) 4.100 05-22-23 660,000 677,269

Morgan Stanley (Z) 4.300 01-27-45 235,000 230,997

Morgan Stanley (Z) 5.500 01-26-20 450,000 509,878

Morgan Stanley (Z) 5.550 04-27-17 565,000 609,465

Morgan Stanley (Z) 7.300 05-13-19 895,000 1,063,093

Morgan Stanley (5.550% to 7-15-20, then 3 month LIBOR + 3.810%) (Q) 5.550 07-15-20 325,000 326,625

Stifel Financial Corp. (Z) 4.250 07-18-24 315,000 317,840

The Bear Stearns Companies LLC (Z) 7.250 02-01-18 1,000,000 1,146,336

The Goldman Sachs Group, Inc. (Z) 5.250 07-27-21 1,195,000 1,352,735

The Goldman Sachs Group, Inc. (Z) 5.750 01-24-22 105,000 121,683

Consumer finance 1.8%

Capital One Financial Corp. (Z) 2.450 04-24-19 470,000 474,600

Capital One Financial Corp. (Z) 3.500 06-15-23 1,100,000 1,120,188

Credito Real SAB de CV (S)(Z) 7.500 03-13-19 325,000 341,250

Discover Financial Services (Z) 3.950 11-06-24 370,000 374,581

Discover Financial Services (Z) 5.200 04-27-22 585,000 647,646

Enova International, Inc. 9.750 06-01-21 390,000 382,200

Diversified financial services 2.7%

Doric Nimrod Air Alpha 2013-1 Class A Pass Through Trust (S)(Z) 5.250 05-30-25 383,472 407,439

Doric Nimrod Air Alpha 2013-1 Class B Pass Through Trust (S)(Z) 6.125 11-30-21 256,388 273,695

Doric Nimrod Air Finance Alpha, Ltd. 2012-1 Class A Pass Through Trust (S)(Z) 5.125 11-30-24 227,262 240,912

12SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Financials (continued)

Diversified financial services (continued)

General Electric Capital Corp. (Z) 4.375 09-16-20 365,000 $406,495

General Electric Capital Corp. (Z) 5.550 05-04-20 430,000 500,116

General Electric Capital Corp. (7.125% until 6-15-22, then 3 month LIBOR + 5.296%) (Q)(Z) 7.125 06-15-22 600,000 697,500

Leucadia National Corp. (Z) 5.500 10-18-23 655,000 671,934

Nationstar Mortgage LLC (Z) 7.875 10-01-20 340,000 350,200

Nationstar Mortgage LLC (Z) 9.625 05-01-19 295,000 315,650

NewStar Financial, Inc. (S) 7.250 05-01-20 360,000 364,500

Voya Financial, Inc. (5.650% to 5-15-23, then 3 month LIBOR + 3.580%) (Z) 5.650 05-15-53 674,000 706,015

Insurance 3.1%

American International Group, Inc. (Z) 4.125 02-15-24 295,000 317,353

Aquarius + Investments PLC (6.375% to 9-1-19, then 5 Year U.S. Swap Rate + 5.210%) 6.375 09-01-24 235,000 251,029

Assured Guaranty US Holdings, Inc. (Z) 5.000 07-01-24 465,000 491,178

AXA SA (Z) 8.600 12-15-30 175,000 244,909

AXA SA (6.379% to 12-14-36, then 3 month LIBOR + 2.256%) (Q)(S)(Z) 6.379 12-14-36 240,000 269,100

CNA Financial Corp. (Z) 7.250 11-15-23 320,000 393,981

Liberty Mutual Group, Inc. (7.800% to 3-15-37, then 3 month LIBOR +3.576%) (S)(Z) 7.800 03-07-87 705,000 867,221

MetLife, Inc. (Z) 6.400 12-15-66 305,000 359,138

Nippon Life Insurance Company (5.000% to 10-18-22, then 3 month LIBOR + 4.240%) (S)(Z) 5.000 10-18-42 310,000 334,456

Nippon Life Insurance Company (5.100% to 10-16-24, then 5 Year U.S. ISDAFIX + 3.650%) (S)(Z) 5.100 10-16-44 365,000 398,763

Pacific LifeCorp. (S)(Z) 6.000 02-10-20 245,000 278,920

Prudential Financial, Inc. (5.200% to 3-15-24, then 3 month LIBOR + 3.040%) (Z) 5.200 03-15-44 110,000 113,025

Prudential Financial, Inc. (5.875% to 9-15-22, then 3 month LIBOR + 4.175%) (Z) 5.875 09-15-42 142,000 154,070

Sirius International Group, Ltd. (7.506% to 6-30-17, then 3 month LIBOR + 3.200%) (Q)(S)(Z) 7.506 06-30-17 485,000 508,038

Teachers Insurance & Annuity Association of America (S)(Z) 6.850 12-16-39 555,000 748,586

XLIT, Ltd. (Z) 4.450 03-31-25 120,000 120,851

Real estate investment trusts 4.6%

American Tower Corp. (Z) 3.400 02-15-19 225,000 233,189

American Tower Corp. (Z) 4.700 03-15-22 400,000 426,259

ARC Properties Operating Partnership LP 4.600 02-06-24 523,000 513,194

Crown Castle Towers LLC (S)(Z) 4.883 08-15-40 710,000 777,414

Crown Castle Towers LLC (S)(Z) 6.113 01-15-40 451,000 513,872

DDR Corp. (Z) 7.500 04-01-17 880,000 974,340

Education Realty Operating Partnership LP 4.600 12-01-24 270,000 280,363

Goodman Funding Pty, Ltd. (S)(Z) 6.375 04-15-21 645,000 753,673

SEE NOTES TO FINANCIAL STATEMENTS13

Rate (%) Maturity date Par value^ Value

Financials (continued)

Real estate investment trusts (continued)

Health Care REIT, Inc. (Z) 4.950 01-15-21 190,000 $211,081

Highwoods Realty LP (Z) 5.850 03-15-17 310,000 334,107

Host Hotels & Resorts LP (Z) 5.875 06-15-19 439,000 453,955

Iron Mountain, Inc. (Z) 6.000 08-15-23 440,000 468,600

iStar Financial, Inc. 5.000 07-01-19 135,000 134,494

MPT Operating Partnership LP (Z) 6.375 02-15-22 320,000 345,600

Omega Healthcare Investors, Inc. (S) 4.500 01-15-25 280,000 284,161

Omega Healthcare Investors, Inc. 4.950 04-01-24 350,000 367,371

USB Realty Corp. (P)(Q)(S)(Z) 1.422 01-15-17 800,000 728,000

Ventas Realty LP (Z) 3.750 05-01-24 215,000 220,154

Ventas Realty LP (Z) 4.750 06-01-21 455,000 501,699

Thrifts and mortgage finance 0.1%

Stearns Holdings, Inc. (S) 9.375 08-15-20 155,000 153,838

Health care 2.7% 5,004,959

Health care equipment and supplies 0.6%

Crimson Merger Sub, Inc. (S)(Z) 6.625 05-15-22 310,000 275,513

Medtronic, Inc. (S)(Z) 4.625 03-15-45 405,000 436,072

Zimmer Holdings, Inc. (Z) 3.550 04-01-25 435,000 435,324

Health care providers and services 0.5%

HCA, Inc. (Z) 5.250 04-15-25 375,000 406,406

Medco Health Solutions, Inc. (Z) 7.125 03-15-18 275,000 315,459

WellCare Health Plans, Inc. (Z) 5.750 11-15-20 200,000 212,100

Pharmaceuticals 1.6%

Actavis Funding SCS (Z) 3.800 03-15-25 300,000 303,362

Grifols Worldwide Operations, Ltd. (S)(Z) 5.250 04-01-22 350,000 357,875

Hospira, Inc. (Z) 6.050 03-30-17 485,000 526,268

Mallinckrodt International Finance SA (S)(Z) 5.750 08-01-22 310,000 320,850

Mylan, Inc. (S) 7.875 07-15-20 545,000 570,680

Valeant Pharmaceuticals International, Inc. (S)(Z) 5.500 03-01-23 110,000 111,100

Valeant Pharmaceuticals International, Inc. (S)(Z) 5.625 12-01-21 200,000 204,750

Valeant Pharmaceuticals International, Inc. (S)(Z) 6.125 04-15-25 260,000 269,100

Valeant Pharmaceuticals International, Inc. (S)(Z) 7.500 07-15-21 240,000 260,100

Industrials 9.7% 18,132,508

Aerospace and defense 1.7%

Embraer Overseas, Ltd. (S)(Z) 5.696 09-16-23 296,000 317,460

Huntington Ingalls Industries, Inc. (S)(Z) 5.000 12-15-21 350,000 361,813

Lockheed Martin Corp. (Z) 2.900 03-01-25 576,000 575,956

Textron Financial Corp. (6.000% to 2-15-17, then 3 month LIBOR + 1.735%) (S)(Z) 6.000 02-15-67 925,000 827,875

Textron, Inc. (Z) 3.875 03-01-25 180,000 184,409

Textron, Inc. (Z) 5.600 12-01-17 505,000 549,626

14SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Industrials (continued)

Aerospace and defense (continued)

Textron, Inc. (Z) 7.250 10-01-19 270,000 $320,621

Airlines 4.1%

America West Airlines 2000-1 Pass Through Trust (Z) 8.057 01-02-22 120,189 138,818

American Airlines 2011-1 Class B Pass Through Trust (S)(Z) 7.000 07-31-19 628,799 683,819

American Airlines 2013-2 Class A Pass Through Trust (Z) 4.950 07-15-24 325,123 354,774

American Airlines 2015-1 Class B Pass Through Trust 3.700 11-01-24 630,000 632,363

British Airways PLC 2013-1 Class A Pass Through Trust (S)(Z) 4.625 06-20-24 599,950 647,945

British Airways PLC 2013-1 Class B Pass Through Trust (S)(Z) 5.625 12-20-21 239,170 254,716

Continental Airlines 1997-4 Class A Pass Through Trust (Z) 6.900 07-02-19 202,990 211,110

Continental Airlines 1998-1 Class A Pass Through Trust (Z) 6.648 03-15-19 57,208 59,456

Continental Airlines 1999-1 Class A Pass Through Trust (Z) 6.545 08-02-20 148,193 161,900

Continental Airlines 2000-2 Class B Pass Through Trust (Z) 8.307 10-02-19 53,536 58,755

Continental Airlines 2007-1 Class A Pass Through Trust (Z) 5.983 10-19-23 456,808 513,909

Continental Airlines 2012-1 Class B Pass Through Trust (Z) 6.250 10-11-21 191,351 204,267

Delta Air Lines 2002-1 Class G-1 Pass Through Trust (Z) 6.718 07-02-24 574,101 665,957

Delta Air Lines 2007-1 Class A Pass Through Trust (Z) 6.821 02-10-24 565,791 666,898

Delta Air Lines 2010-1 Class A Pass Through Trust (Z) 6.200 01-02-20 139,162 152,730

Delta Air Lines 2011-1 Class A Pass Through Trust (Z) 5.300 10-15-20 239,923 261,516

Northwest Airlines 2007-1 Class A Pass Through Trust (Z) 7.027 05-01-21 347,337 399,438

UAL 2009-1 Pass Through Trust (Z) 10.400 05-01-18 62,211 67,810

UAL 2009-2A Pass Through Trust (Z) 9.750 07-15-18 216,069 237,136

United Airlines 2014-2 Class A Pass Through Trust (Z) 3.750 03-03-28 435,000 454,575

United Airlines 2014-2 Class B Pass Through Trust (Z) 4.625 03-03-22 250,000 257,500

US Airways 2010-1 Class A Pass Through Trust (Z) 6.250 10-22-24 393,135 447,191

US Airways 2012-1 Class A Pass Through Trust (Z) 5.900 04-01-26 150,869 172,368

Building products 0.5%

Masco Corp. (Z) 4.450 04-01-25 135,000 139,050

Masco Corp. (Z) 7.125 03-15-20 285,000 332,738

Owens Corning (Z) 4.200 12-15-22 395,000 409,676

Commercial services and supplies 0.4%

Ahern Rentals, Inc. (S)(Z) 9.500 06-15-18 195,000 210,405

Casella Waste Systems, Inc. (Z) 7.750 02-15-19 365,000 372,300

Safway Group Holding LLC (S)(Z) 7.000 05-15-18 180,000 182,250

Construction and engineering 0.2%

Tutor Perini Corp. (Z) 7.625 11-01-18 335,000 347,563

Electrical equipment 0.1%

EnerSys (S) 5.000 04-30-23 95,000 96,188

Industrial conglomerates 0.3%

Odebrecht Finance, Ltd. (S)(Z) 7.125 06-26-42 225,000 200,531

Odebrecht Finance, Ltd. (Q)(S)(Z) 7.500 09-14-15 200,000 181,000

SEE NOTES TO FINANCIAL STATEMENTS15

Rate (%) Maturity date Par value^ Value

Industrials (continued)

Industrial conglomerates (continued)

Tenedora Nemak SA de CV (S)(Z) 5.500 02-28-23 210,000 $220,521

Machinery 0.4%

Optimas OE Solutions Holding LLC (S) 8.625 06-01-21 135,000 137,700

SPL Logistics Escrow LLC (S)(Z) 8.875 08-01-20 215,000 226,288

Trinity Industries, Inc. (Z) 4.550 10-01-24 355,000 350,430

Marine 0.2%

Navios South American Logistics, Inc. (S)(Z) 7.250 05-01-22 375,000 363,750

Road and rail 0.3%

Penske Truck Leasing Company LP (S)(Z) 3.375 02-01-22 620,000 616,576

Trading companies and distributors 1.4%

Air Lease Corp. (Z) 3.375 01-15-19 440,000 452,100

Air Lease Corp. (Z) 3.875 04-01-21 215,000 221,988

Air Lease Corp. (Z) 4.750 03-01-20 220,000 235,950

Air Lease Corp. (Z) 5.625 04-01-17 175,000 187,031

Aircastle, Ltd. (Z) 5.500 02-15-22 215,000 229,513

Aircastle, Ltd. (Z) 7.625 04-15-20 160,000 186,400

Ashtead Capital, Inc. (S)(Z) 5.625 10-01-24 205,000 215,506

International Lease Finance Corp. (S)(Z) 7.125 09-01-18 290,000 328,425

United Rentals North America, Inc. (Z) 5.500 07-15-25 260,000 263,393

United Rentals North America, Inc. (Z) 5.750 11-15-24 320,000 328,800

Transportation infrastructure 0.1%

Florida East Coast Holdings Corp. (S)(Z) 6.750 05-01-19 255,000 253,725

Information technology 0.9% 1,696,636

Communications equipment 0.1%

Harris Corp. 3.832 04-28-25 170,000 170,848

Internet software and services 0.4%

Ancestry.com Holdings LLC, PIK (S)(Z) 9.625 10-15-18 135,000 138,375

Ancestry.com, Inc. (Z) 11.000 12-15-20 305,000 346,938

VeriSign, Inc. (S)(Z) 5.250 04-01-25 265,000 273,931

IT services 0.2%

Sixsigma Networks Mexico SA de CV (S)(Z) 8.250 11-07-21 275,000 290,125

Semiconductors and semiconductor equipment 0.2%

Micron Technology, Inc. (Z) 5.875 02-15-22 375,000 394,219

Software 0.0%

Infor US, Inc. (S) 6.500 05-15-22 80,000 82,200

Materials 4.3% 7,934,809

Chemicals 1.4%

Braskem Finance, Ltd. (S)(Z) 7.000 05-07-20 515,000 534,313

Incitec Pivot Finance LLC (S)(Z) 6.000 12-10-19 345,000 388,241

NOVA Chemicals Corp. (S)(Z) 5.000 05-01-25 535,000 563,756

16SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Materials (continued)

Chemicals (continued)

Platform Specialty Products Corp. (S)(Z) 6.500 02-01-22 535,000 $559,075

Rockwood Specialties Group, Inc. (Z) 4.625 10-15-20 555,000 577,894

Construction materials 0.9%

American Gilsonite Company (S)(Z) 11.500 09-01-17 310,000 269,700

Cemex SAB de CV (S)(Z) 6.125 05-05-25 360,000 369,432

Cemex SAB de CV (S)(Z) 6.500 12-10-19 340,000 364,650

Magnesita Finance, Ltd. (Q)(S)(Z) 8.625 04-15-17 200,000 162,000

Norbord, Inc. (S) 6.250 04-15-23 215,000 215,808

Vulcan Materials Company (Z) 4.500 04-01-25 260,000 263,900

Containers and packaging 0.2%

Ardagh Finance Holdings SA, PIK (S)(Z) 8.625 06-15-19 260,960 278,575

Metals and mining 1.8%

Alcoa, Inc. (Z) 5.125 10-01-24 520,000 560,739

Allegheny Technologies, Inc. (Z) 9.375 06-01-19 715,000 850,850

ArcelorMittal (Z) 10.600 06-01-19 370,000 445,388

FMG Resources August 2006 Pty, Ltd. (S) 9.750 03-01-22 105,000 108,413

Glencore Finance Canada, Ltd. (S)(Z) 4.250 10-25-22 220,000 225,083

Glencore Funding LLC (S)(Z) 4.125 05-30-23 370,000 373,140

MMC Norilsk Nickel OJSC (S)(Z) 5.550 10-28-20 235,000 230,902

Rain CLL Carbon LLC (S)(Z) 8.000 12-01-18 340,000 316,200

Vedanta Resources PLC (S)(Z) 7.125 05-31-23 300,000 276,750

Telecommunication services 3.1% 5,696,679

Diversified telecommunication services 1.5%

AT&T, Inc. 4.750 05-15-46 320,000 312,731

BellSouth Telecommunications, Inc. (Z) 6.300 12-15-15 140,469 142,782

GCI, Inc. (S) 6.875 04-15-25 230,000 235,750

GTP Acquisition Partners I LLC (S)(Z) 4.704 05-15-18 485,000 493,474

Telecom Italia Capital SA (Z) 7.200 07-18-36 365,000 417,925

Verizon Communications, Inc. (Z) 4.400 11-01-34 260,000 255,226

Verizon Communications, Inc. 5.012 08-21-54 262,000 259,272

Verizon Communications, Inc. (Z) 6.550 09-15-43 263,000 328,963

Wind Acquisition Finance SA (S)(Z) 7.375 04-23-21 355,000 363,431

Wireless telecommunication services 1.6%

Comcel Trust (S)(Z) 6.875 02-06-24 330,000 353,925

Digicel Group, Ltd. (S)(Z) 8.250 09-30-20 385,000 397,089

Digicel, Ltd. (S) 6.750 03-01-23 200,000 197,100

Millicom International Cellular SA (S)(Z) 4.750 05-22-20 210,000 206,850

Millicom International Cellular SA (S)(Z) 6.625 10-15-21 300,000 319,125

MTN Mauritius Investments, Ltd. (S)(Z) 4.755 11-11-24 225,000 231,224

SBA Tower Trust (S)(Z) 2.933 12-15-17 395,000 401,689

SBA Tower Trust (S)(Z) 3.598 04-15-43 370,000 369,623

SEE NOTES TO FINANCIAL STATEMENTS17

Rate (%) Maturity date Par value^ Value

Telecommunication services (continued)

Wireless telecommunication services (continued)

SoftBank Corp. (S)(Z) 4.500 04-15-20 400,000 $410,500

Utilities 3.1% 5,870,148

Electric utilities 2.1%

Beaver Valley II Funding Corp. (Z) 9.000 06-01-17 49,000 52,920

BVPS II Funding Corp. (Z) 8.890 06-01-17 195,000 205,468

Electricite de France SA (5.250% to 1-29-23, then 10 Year U.S. Swap Rate + 3.709%) (Q)(S)(Z) 5.250 01-29-23 485,000 508,038

Empresa Electrica Angamos SA (S)(Z) 4.875 05-25-29 360,000 364,050

FPL Energy National Wind LLC (S)(Z) 5.608 03-10-24 69,163 69,163

Israel Electric Corp., Ltd. (S)(Z) 5.625 06-21-18 420,000 454,125

NextEra Energy Capital Holdings, Inc. (6.650% to 6-15-17, then 3 month LIBOR + 2.125%) (Z) 6.650 06-15-67 100,000 100,250

NRG Yield Operating LLC (S)(Z) 5.375 08-15-24 260,000 269,750

Oncor Electric Delivery Company LLC (Z) 5.000 09-30-17 820,000 893,543

PNPP II Funding Corp. (Z) 9.120 05-30-16 57,000 58,174

PPL Capital Funding, Inc. (6.700% to 3-30-17, then 3 month LIBOR + 2.665%) (Z) 6.700 03-30-67 340,000 314,619

Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (Q)(Z) 6.250 02-01-22 320,000 360,342

W3A Funding Corp. (Z) 8.090 01-02-17 207,820 207,897

Independent power and renewable electricity producers 0.1%

Dynegy, Inc. (S) 6.750 11-01-19 120,000 125,400

Dynegy, Inc. (S) 7.625 11-01-24 165,000 177,375

Multi-utilities 0.9%

Berkshire Hathaway Energy Company (Z) 8.480 09-15-28 550,000 831,109

Integrys Energy Group, Inc. (6.110% to 12-1-16, then 3 month LIBOR + 2.120%) 6.110 12-01-66 480,000 471,000

Wisconsin Energy Corp. (6.250% to 5-15-17, then 3 month LIBOR + 2.113%) (Z) 6.250 05-15-67 410,000 406,925

Term loans (M) 0.5% (0.3% of Total investments) $923,951

(Cost $923,590)

Consumer staples 0.2% 355,448

Household products 0.2%

The Sun Products Corp. 5.500 03-23-20 369,777 355,448

Industrials 0.1% 147,212

Aerospace and defense 0.1%

WP CPP Holdings LLC 4.750 12-28-19 146,625 147,212

Utilities 0.2% 421,291

Electric utilities 0.2%

ExGen Texas Power LLC 5.750 09-16-21 278,522 280,437

La Frontera Generation LLC 4.500 09-30-20 140,591 140,854

18SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Capital preferred securities (a) 1.9% (1.3% of Total investments) $3,596,526

(Cost $3,426,132)

Financials 1.9% 3,596,526

Banks 0.3%

Sovereign Capital Trust VI (Z) 7.908 06-13-36 489,000 511,443

Capital markets 0.7%

Goldman Sachs Capital II (P)(Q)(Z) 4.000 06-01-15 670,000 520,925

State Street Capital Trust IV (P)(Z) 1.271 06-01-67 935,000 804,100

Insurance 0.9%

MetLife Capital Trust IV (7.875% to 12-15-32 then 3 month LIBOR + 3.960%) (S)(Z) 7.875 12-15-67 110,000 145,750

MetLife Capital Trust X (9.250% to 4-8-33 then 3 month LIBOR + 5.540%) (S)(Z) 9.250 04-08-68 315,000 470,138

ZFS Finance USA Trust II (6.450% to 6-15-16 then 3 month LIBOR + 2.000%) (S)(Z) 6.450 12-15-65 870,000 905,670

ZFS Finance USA Trust V (6.500% to 5-9-17, then 3 month LIBOR + 2.285%) (S)(Z) 6.500 05-09-67 225,000 238,500

U.S. Government and Agency obligations 32.9% (22.3% of Total investments) $61,398,024

(Cost $60,840,043)

U.S. Government 7.2% 13,405,025

U.S. Treasury

Bond (Z) 3.000 11-15-44 3,240,000 3,407,822

Bond (Z) 3.125 02-15-42 1,405,000 1,510,813

Note (Z) 2.000 02-15-25 8,517,000 8,486,390

U.S. Government Agency 25.7% 47,992,999

Federal Home Loan Banks

Bond (Z) 2.900 09-05-25 200,000 197,591

Bond (Z) 3.170 10-04-27 200,000 198,310

Bond (Z) 3.250 06-21-27 269,697 269,783

Federal Home Loan Mortgage Corp.

30 Yr Pass Thru (P) 2.555 06-01-44 483,952 500,816

30 Yr Pass Thru (P) 2.682 05-01-44 457,557 474,595

30 Yr Pass Thru (Z) 3.000 03-01-43 943,412 965,155

30 Yr Pass Thru (Z) 4.500 09-01-41 2,475,032 2,708,777

30 Yr Pass Thru (Z) 5.000 03-01-41 3,997,221 4,471,480

Federal National Mortgage Association

15 Yr Pass Thru (Z) 3.000 10-29-27 705,000 691,543

15 Yr Pass Thru (Z) 3.400 09-27-32 745,000 738,039

30 Year Pass Thru 3.500 04-01-45 1,862,691 1,958,009

30 Yr Pass Thru (P) (Z) 2.519 06-01-44 847,996 877,139

30 Yr Pass Thru (P) (Z) 2.547 04-01-44 787,961 815,802

30 Yr Pass Thru (Z) 3.000 12-01-42 4,054,017 4,147,295

30 Yr Pass Thru 3.000 03-01-43 266,129 272,501

30 Yr Pass Thru (Z) 3.000 07-01-43 1,005,514 1,026,293

SEE NOTES TO FINANCIAL STATEMENTS19

Rate (%) Maturity date Par value^ Value

U.S. Government Agency (continued)

30 Yr Pass Thru (Z) 3.500 12-01-42 5,420,403 $5,692,694

30 Yr Pass Thru (Z) 3.500 01-01-43 4,100,091 4,327,839

30 Yr Pass Thru (Z) 4.000 10-01-40 480,382 519,751

30 Yr Pass Thru (Z) 4.000 09-01-41 2,937,847 3,162,087

30 Yr Pass Thru (Z) 4.000 09-01-41 1,474,700 1,580,348

30 Yr Pass Thru (Z) 4.000 09-01-41 701,607 763,710

30 Yr Pass Thru (Z) 4.000 10-01-41 2,157,387 2,328,124

30 Yr Pass Thru (Z) 4.500 10-01-40 1,977,540 2,168,782

30 Yr Pass Thru (Z) 4.500 07-01-41 4,890,416 5,353,419

30 Yr Pass Thru (Z) 5.000 04-01-41 539,403 613,550

30 Yr Pass Thru (Z) 5.500 08-01-40 185,158 210,220

30 Yr Pass Thru (Z) 6.500 01-01-39 830,425 959,347

Foreign government obligations 0.2% (0.1% of Total investments) $329,724

(Cost $277,285)

Argentina 0.2% 329,724

Republic of Argentina (H) 8.280 12-31-33 322,469 329,724

Collateralized mortgage obligations 18.8% (12.7% of Total investments) $35,083,830

(Cost $33,127,337)

Commercial and residential 15.8% 29,537,429

American Home Mortgage Assets Trust
Series 2006-6, Class XP IO 2.047 12-25-46 4,635,788 432,459

American Home Mortgage Investment Trust
Series 2005-1, Class 1A1 (P) 0.394 06-25-45 555,636 516,302

Americold 2010 LLC Trust
Series 2010-ARTA, Class D (S) 7.443 01-14-29 605,000 686,239

BAMLL Commercial Mortgage Securities Trust

Series 2014-ICTS, Class D (P) (S) 2.082 06-15-28 100,000 99,620

Series 2015-200P, Class F (P) (S) 3.595 04-14-33 415,000 382,232

BBCMS Trust
Series 2015, Class C (P) (S) 2.182 02-15-28 215,000 215,072

Bear Stearns Adjustable Rate Mortgage Trust

Series 2005-1, Class B2 (P) 2.723 03-25-35 489,045 35,939

Series 2005-2, Class A1 (P) 2.680 03-25-35 354,715 358,243

Bear Stearns ALT-A Trust

Series 2005-5, Class 1A4 (P) 0.741 07-25-35 393,156 354,053

Series 2005-7, Class 11A1 (P) 0.714 08-25-35 631,741 588,401

BHMS Mortgage Trust
Series 2014-ATLS, Class DFL (P) (S) 3.172 07-05-33 620,000 607,508

BLCP Hotel Trust
Series 2014-CLRN, Class D (P) (S) 2.682 08-15-29 530,000 531,202

BWAY Mortgage Trust

Series 2013-1515, Class F (P) (S) 4.058 03-10-33 595,000 556,991

Series 2015-1740, Class D (P) (S) 3.787 01-13-35 370,000 365,499

20SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Commercial and residential (continued)

CDGJ Commercial Mortgage Trust
Series 2014-BXCH, Class D (P) (S) 3.174 12-15-27 595,000 $596,044

CGBAM Commercial Mortgage
Series 2015-SMRT, Class F 3.912 04-10-28 325,000 316,455

Commercial Mortgage Trust
Series 2014-PAT, Class D (P) (S) 2.330 08-13-27 775,000 781,784

Commercial Mortgage Trust (Deutsche Bank)

Series 2012-LC4, Class B (P) 4.934 12-10-44 360,000 402,782

Series 2013-300P, Class D (P) (S) 4.540 08-10-30 620,000 654,124

Series 2013-CR11, Class B (P) 5.331 10-10-46 895,000 1,016,441

Series 2013-CR13, Class C (P) 4.913 12-10-23 435,000 470,349

Series 2013-CR6, Class XA IO (P) 1.660 03-10-46 4,190,828 259,718

Series 2014-FL4, Class D (P) (S) 2.630 07-13-31 600,000 596,775

Series 2014-TWC, Class D (P) (S) 2.426 02-13-32 445,000 444,696

Commercial Mortgage Trust (Wells Fargo)
Series 2014-CR16, Class C (P) 5.069 04-10-47 552,000 597,790

Credit Suisse Mortgage Trust
Series 2014-ICE, Class D (P) (S) 2.332 04-15-27 550,000 546,636

Deutsche Mortgage Securities, Inc. Mortgage Loan Trust
Series 2004-4, Class 2AR1 (P) 0.451 06-25-34 446,535 422,415

Extended Stay America Trust
Series 2013-ESFL, Class DFL (P) (S) 3.318 12-05-31 505,000 504,486

GAHR Commericial Mortgage Trust

Series 2015-NRF, Class DFX (P) (S) 3.495 12-15-19 220,000 216,300

Series 2015-NRF, Class EFX (P) (S) 3.495 12-15-19 495,000 468,011

HarborView Mortgage Loan Trust

Series 2005-11, Class X IO 2.410 08-19-45 2,009,905 116,685

Series 2005-2, Class IX IO 2.182 05-19-35 6,996,417 471,760

Series 2005-9, Class 2A1C (P) 0.626 06-20-35 630,290 577,672

Series 2005-8, Class 1X IO 2.092 09-19-35 2,648,425 137,681

Series 2007-3, Class ES IO (S) 0.350 05-19-47 8,505,650 90,373

Series 2007-4, Class ES IO 0.350 07-19-47 8,891,507 88,915

Series 2007-6, Class ES IO (S) 0.340 08-19-37 6,967,886 74,034

Hilton USA Trust
Series 2013-HLT, Class DFX (S) 4.407 11-05-30 431,000 438,611

IndyMac Index Mortgage Loan Trust

Series 2005-AR12, Class AX2 IO 2.274 07-25-35 6,605,783 481,093

Series 2005-AR8, Class AX2 IO 2.296 04-25-35 6,456,709 511,636

Series 2005-AR18, Class 1X IO 2.126 10-25-36 7,877,195 698,579

Series 2005-AR18, Class 2X IO 1.798 10-25-36 6,900,556 273,676

JPMBB Commercial Mortgage Securities Trust
Series 2014-C19, Class C (P) 4.833 04-15-47 725,000 769,684

JPMorgan Chase Commercial Mortgage Securities Trust

Series 2013-JWRZ, Class D (P) (S) 3.172 04-15-30 440,000 440,019

Series 2014-FL5, Class C (P) (S) 2.282 07-15-31 1,030,000 1,025,483

Series 2014-INN, Class F (P) (S) 4.182 06-15-29 490,000 485,041

SEE NOTES TO FINANCIAL STATEMENTS21

Rate (%) Maturity date Par value^ Value

Commercial and residential (continued)

Series 2014-PHH, Class C (P) (S) 2.282 08-15-27 760,000 $765,144

Merrill Lynch Mortgage Investors Trust
Series 2005-2, Class 1A (P) 1.582 10-25-35 505,412 489,723

Morgan Stanley Bank of America Merrill Lynch Trust

Series 2013-C7, Class C (P) 4.325 02-15-46 293,000 306,506

Series 2014-C18, Class 300D 5.279 08-15-31 380,000 399,546

Morgan Stanley Capital I Trust
Series 2014-150E, Class D (P) (S) 4.438 09-09-32 1,050,000 1,103,209

MortgageIT Trust
Series 2005-2, Class 1A2 (P) 0.504 05-25-35 401,413 373,777

Springleaf Mortgage Loan Trust
Series 2012-3A, Class M1 (P) (S) 2.660 12-25-59 265,000 264,926

TMSQ Mortgage Trust
Series 2014-1500, Class D (P) (S) 3.835 10-10-36 340,000 339,755

UBS Commercial Mortgage Trust
Series 2012-C1, Class B 4.822 05-10-45 405,000 444,212

UBS-Barclays Commercial Mortgage Trust
Series 2012-C2, Class XA IO (S) 1.900 05-10-63 4,798,135 355,009

VNDO Mortgage Trust
Series 2013-PENN, Class D (P) (S) 4.079 12-13-29 612,000 636,521

Wachovia Bank Commercial Mortgage Trust
Series 2007-C31, Class AM (P) 5.591 04-15-47 285,000 304,460

WaMu Mortgage Pass Through Certificates
Series 2005-AR8, Class 2AB2 (P) 0.594 07-25-45 589,965 544,905

Wells Fargo Commercial Mortgage Trust

Series 2013-120B, Class C (P) (S) 2.800 03-18-28 935,000 925,466

Series 2013-BTC, Class E (P) (S) 3.668 04-16-35 620,000 580,580

WF-RBS Commercial Mortgage Trust

Series 2012-C9, Class XA IO (S) 2.359 11-15-45 4,974,464 529,785

Series 2013-C15, Class B (P) 4.631 08-15-46 155,000 168,934

Series 2013-C16, Class B (P) 5.149 09-15-46 265,000 299,463

U.S. Government Agency 3.0% 5,546,401

Federal Home Loan Mortgage Corp.

Series 2015, Class DNA1 M2 (P) 2.030 10-25-27 380,000 380,158

Series 290, Class IO 3.500 11-15-32 3,077,806 570,250

Series 3747, Class HI IO 4.500 07-15-37 2,638,011 201,397

Series 3830, Class NI IO 4.500 01-15-36 2,303,165 189,141

Series 4077, Class IK IO 5.000 07-15-42 732,175 162,043

Series 4136, Class IH IO 3.500 09-15-27 2,097,278 243,821

Series K017, Class X1 IO 1.576 12-25-21 2,924,514 221,620

Series K018, Class X1 IO 1.583 01-25-22 3,644,079 278,091

Series K021, Class X1 IO 1.633 06-25-22 798,252 68,531

Series K022, Class X1 IO 1.421 07-25-22 9,264,923 697,890

Series K707, Class X1 IO 1.682 12-25-18 2,401,465 117,112

Series K709, Class X1 IO 1.665 03-25-19 3,301,422 170,185

22SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

U.S. Government Agency (continued)

Series K710, Class X1 IO 1.907 05-25-19 3,595,361 $219,943

Federal National Mortgage Association

Series 2010-68, Class CI IO 5.000 11-25-38 611,104 71,641

Series 2012-118, Class IB IO 3.500 11-25-42 1,288,395 278,767

Series 2012-137, Class QI IO 3.000 12-25-27 2,432,644 314,190

Series 2012-137, Class WI IO 3.500 12-25-32 1,831,691 317,143

Series 402, Class 3 IO 4.000 11-25-39 376,533 61,730

Series 402, Class 4 IO 4.000 10-25-39 583,569 96,132

Series 402, Class 7 IO 4.500 11-25-39 519,509 95,752

Series 402, Class 8 IO 4.500 11-25-39 466,315 91,701

Series 407, Class 15 IO 5.000 01-25-40 570,880 111,411

Series 407, Class 21 IO 5.000 01-25-39 262,381 50,952

Series 407, Class 7 IO 5.000 03-25-41 235,690 47,610

Series 407, Class 8 IO 5.000 03-25-41 243,688 48,002

Series 407, Class C6 IO 5.500 01-25-40 892,024 182,097

Government National Mortgage Association

Series 2012-114, Class IO 0.974 01-16-53 1,874,240 148,417

Series 2013-42, Class IO 3.500 03-20-43 868,460 110,674

Asset backed securities 12.1% (8.2% of Total investments) $22,504,454

(Cost $21,990,208)

Asset Backed Securities 12.1% 22,504,454

ACE Securities Corp.
Series 2005-HE3, Class M2 (P) 0.856 05-25-35 315,000 301,802

Aegis Asset Backed Securities Trust
Series 2005-4, Class M1 (P) 0.631 10-25-35 825,000 744,560

Ally Auto Receivables Trust
Series 2014-2, Class A4 1.840 01-15-20 735,000 742,366

Ally Master Owner Trust
Series 2012-4, Class A 1.720 07-15-19 275,000 277,331

American Express Credit Account Master Trust
Series 2014-1, Class A4 1.490 04-15-20 760,000 765,642

Ameriquest Mortgage Securities, Inc.
Series 2005-R3, Class M2 (P) 0.644 05-25-35 480,000 453,843

Applebee's/IHOP Funding LLC
Series 2014-1, Class A2 (S) 4.277 09-05-44 1,005,000 1,036,355

Argent Securities, Inc.

Series 2003-W10, Class M1 (P) 1.254 01-25-34 257,870 248,690

Series 2004-W6, Class M1 (P) 0.999 05-25-34 210,860 201,042

Bravo Mortgage Asset Trust
Series 2006-1A, Class A2 (P) (S) 0.421 07-25-36 800,368 751,451

CarMax Auto Owner Trust
Series 2014-3, Class A3 1.160 06-17-19 660,000 660,606

Chase Issuance Trust
Series 2014-A6, Class A 1.260 07-15-19 541,000 542,025

SEE NOTES TO FINANCIAL STATEMENTS23

Rate (%) Maturity date Par value^ Value

Asset Backed Securities (continued)

Chrysler Capital Auto Receivables Trust
Series 2014-BA, Class A4 (S) 1.760 12-16-19 275,000 $276,799

Citibank Credit Card Issuance Trust

Series 2007-A8, Class A8 5.650 09-20-19 450,000 496,868

Series 2014-A8, Class A8 1.730 04-09-20 955,000 965,013

CKE Restaurant Holdings, Inc.
Series 2013-1A, Class A2 (S) 4.474 03-20-43 1,081,550 1,112,105

ContiMortgage Home Equity Loan Trust
Series 1995-2, Class A5 8.100 08-15-25 26,030 24,891

Countrywide Asset-Backed Certificates
Series 2004-10, Class AF5B (P) 5.613 02-25-35 462,450 470,366

Credit Suisse Mortgage Trust
Series 2006-CF2, Class M1 (P) (S) 0.651 05-25-36 735,000 712,290

DB Master Finance LLC
Series 2015-1A, Class A2II (S) 3.980 02-20-45 870,000 891,448

Encore Credit Receivables Trust
Series 2005-2, Class M2 (P) 0.871 11-25-35 600,000 585,310

Ford Credit Auto Owner Trust
Series 2015, Class AA4 1.640 06-15-20 360,000 361,935

Ford Credit Floorplan Master Owner Trust

Series 2012-5, Class A 1.490 09-15-19 690,000 692,685

Series 2014-4, Class A1 1.400 08-15-19 950,000 952,393

GM Financial Automobile Leasing Trust
Series 2015-1, Class A4 1.730 06-20-19 205,000 205,942

GSAA Home Equity Trust
Series 2005-11, Class 3A1 (P) 0.444 10-25-35 562,126 528,659

GSAA Trust
Series 2005-10, Class M3 (P) 0.724 06-25-35 675,000 647,235

Home Equity Mortgage Loan Asset-Backed Trust
Series 2005-C, Class AII3 (P) 0.551 10-25-25 400,403 385,845

Honda Auto Receivables Owner Trust
Series 2014-3, Class A4 1.310 10-15-20 525,000 526,061

John Deere Owner Trust
Series 2014-B, Class A4 1.500 06-15-21 555,000 558,620

Merrill Lynch Mortgage Investors, Inc.
Series 2005-WMC1, Class M1 (P) 0.931 09-25-35 256,559 232,505

MVW Owner Trust
Series 2014-1A, Class A (S) 2.250 09-20-31 176,876 177,059

Porsche Innovative Lease Owner Trust
Series 2014-1, Class A4 (S) 1.260 09-21-20 445,000 446,131

Sonic Capital LLC
Series 2011-1A, Class A2 (S) 5.438 05-20-41 358,459 380,496

Specialty Underwriting & Residential Finance Trust
Series 2006-BC1, Class A2D (P) 0.481 12-25-36 1,090,000 1,055,819

Volkswagen Credit Auto Master Trust
Series 2014-1A, Class A2 (S) 1.400 07-22-19 445,000 446,864

Westgate Resorts LLC

24SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Asset Backed Securities (continued)

Series 2012-2A, Class B (S) 4.500 01-20-25 488,678 $491,887

Series 2012-3A, Class B (S) 4.500 03-20-25 304,531 307,230

Series 2013-1A, Class B (S) 3.750 08-20-25 114,383 115,071

Series 2014-1A, Class A (S) 2.150 12-20-26 784,699 780,594

Series 2014-1A, Class B (S) 3.250 12-20-26 524,488 526,039

Series 2015-1A, Class A (S) 2.750 05-20-27 424,022 424,581

Shares Value

Common stocks 6.6% (4.5% of Total investments) $12,225,419

(Cost $10,079,345)

Consumer discretionary 0.4% 675,851

Hotels, restaurants and leisure 0.4%

McDonald's Corp. (Z) 7,000 675,851

Consumer staples 1.1% 2,105,950

Food products 0.7%

Kraft Foods Group, Inc. (Z) 15,000 1,271,250

Tobacco 0.4%

Philip Morris International, Inc. (Z) 10,000 834,700

Energy 0.3% 507,440

Oil, gas and consumable fuels 0.3%

Royal Dutch Shell PLC, ADR, Class A (Z) 8,000 507,440

Financials 1.4% 2,586,354

Banks 0.4%

U.S. Bancorp (Z) 14,500 621,615

Capital markets 0.6%

Ares Capital Corp. (Z) 33,500 570,170

The Carlyle Group LP (Z) 20,100 606,819

Real estate investment trusts 0.4%

Weyerhaeuser Company (Z) 25,000 787,750

Health care 1.2% 2,341,214

Pharmaceuticals 1.2%

Johnson & Johnson (Z) 8,258 819,194

Pfizer, Inc. (Z) 24,000 814,320

Sanofi, ADR (Z) 14,000 707,700

Industrials 0.6% 1,118,570

Commercial services and supplies 0.4%

Republic Services, Inc. (Z) 20,000 812,600

Machinery 0.2%

Stanley Black & Decker, Inc. (Z) 3,100 305,970

SEE NOTES TO FINANCIAL STATEMENTS25

Shares Value

Information technology 0.9% $1,609,660

Semiconductors and semiconductor equipment 0.5%

Intel Corp. (Z) 26,000 846,300

Technology hardware, storage and peripherals 0.4%

Seagate Technology PLC (Z) 13,000 763,360

Materials 0.3% 549,000

Chemicals 0.3%

E.I. du Pont de Nemours & Company (Z) 7,500 549,000

Telecommunication services 0.4% 731,380

Diversified telecommunication services 0.4%

Verizon Communications, Inc. (Z) 14,500 731,380

Preferred securities (b) 1.7% (1.2% of Total investments) $3,170,289

(Cost $3,176,147)

Consumer staples 0.3% 585,156

Food and staples retailing 0.3%

Ocean Spray Cranberries, Inc., Series A, 6.250% (S) 6,250 585,156

Financials 0.7% 1,333,900

Banks 0.1%

Wells Fargo & Company, Series L, 7.500% 192 234,000

Consumer finance 0.5%

Ally Financial, Inc., 7.000% (S) 346 352,531

GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + 5.785%) (Z) 24,985 656,606

Real estate investment trusts 0.1%

Weyerhaeuser Company, 6.375% (I) 1,700 90,763

Industrials 0.2% 359,155

Aerospace and defense 0.2%

United Technologies Corp., 7.500% (Z) 6,106 359,155

Telecommunication services 0.1% 207,267

Diversified telecommunication services 0.1%

Intelsat SA, 5.750% (Z) 5,900 207,267

Utilities 0.4% 684,811

Electric utilities 0.1%

Exelon Corp., 6.500% (Z) 4,341 213,881

Multi-utilities 0.3%

Dominion Resources, Inc., 6.375% (I)(Z) 9,485 470,930

26SEE NOTES TO FINANCIAL STATEMENTS

Rate (%) Maturity date Par value^ Value

Escrow certificates 0.0% (0.0% of Total investments) $123

(Cost $0)

Materials 0.0% 123

Smurfit-Stone Container Corp. (I) 8.000 03-15-17 245,000 123

Par value Value

Short-term investments 1.7% (1.1% of Total investments) $3,119,000

(Cost $3,119,000)

Repurchase agreement 1.7% 3,119,000

Repurchase Agreement with State Street Corp., dated 4-30-15 at 0.000% to be repurchased at $3,119,000 on 5-1-15, collateralized by $3,175,000 Federal National Mortage Association, 1.670% due 2-10-20 (valued at $3,182,931, including interest) 3,119,000 3,119,000

Total investments (Cost $264,589,955)† 147.9% $275,526,218

Other assets and liabilities, net (47.9%) ($89,253,882 )

Total net assets 100.0% $186,272,336

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

^ All par values are denominated in U.S. dollars unless otherwise indicated.

Key to Security Abbreviations and Legend

ADR American Depositary Receipts

IO Interest Only Security — (Interest Tranche of Stripped Mortgage Pool). Rate shown is the effective yield at period end.

ISDAFIX International Swaps and Derivatives Association Fixed Interest Rate Swap Rate

LIBOR London Interbank Offered Rate

PIK Payment-in-kind

REIT Real Estate Investment Trust

(a) Includes hybrid securities with characteristics of both equity and debt that trade with and pay, interest income.

(b) Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.

(H) Non-income producing - Issuer is in default.

(I) Non-income producing security.

(M) Term loans are variable rate obligations. The coupon rate shown represents the rate at period end.

(P) Variable rate obligation. The coupon rate shown represents the rate at period end.

(Q) Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.

(S) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $73,034,988 or 39.2% of the fund's net assets as of 4-30-15.

(Z) All or a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 4-30-15 was $181,750,733.

† At 4-30-15, the aggregate cost of investment securities for federal income tax purposes was $266,014,333. Net unrealized appreciation aggregated $9,511,885, of which $13,814,806 related to appreciated investment securities and $4,302,921 related to depreciated investment securities.

SEE NOTES TO FINANCIAL STATEMENTS27

Financial statements

STATEMENT OF ASSETS AND LIABILITIES 4-30-15 (unaudited)

Assets

Investments, at value (Cost $264,589,955) $275,526,218

Cash 53,841

Cash segregated at custodian for swap contracts 280,000

Receivable for investments sold 1,083,113

Dividends and interest receivable 2,484,744

Other receivables and prepaid expenses 32,501

Total assets 279,460,417

Liabilities

Credit facility agreement payable 91,300,000

Payable for investments purchased 1,225,142

Swap contracts, at value 515,143

Interest payable 67,026

Payable to affiliates

Trustees' fees 371

Other liabilities and accrued expenses 80,399

Total liabilities 93,188,081

Net assets $186,272,336

Net assets consist of

Paid-in capital $185,634,025

Undistributed net investment income 465,311

Accumulated net realized gain (loss) on investments and swap agreements (10,248,120 )

Net unrealized appreciation (depreciation) on investments and swap agreements 10,421,120

Net assets $186,272,336

Net asset value per share

Based on 11,743,104 shares of beneficial interest outstanding — unlimited number of shares authorized with no par value $15.86

28SEE NOTES TO FINANCIAL STATEMENTS

STATEMENT OF OPERATIONS For the six months ended 4-30-15 (unaudited)

Investment income

Interest $5,697,353

Dividends 344,697

Less foreign taxes withheld (1,999 )

Total investment income 6,040,051

Expenses

Investment management fees 709,355

Accounting and legal services fees 13,889

Transfer agent fees 45,538

Trustees' fees 14,883

Printing and postage 29,387

Professional fees 30,241

Custodian fees 13,018

Stock exchange listing fees 11,709

Interest expense 366,489

Other 14,597

Total expenses 1,249,106

Less expense reductions (10,418 )

Net expenses 1,238,688

Net investment income 4,801,363

Realized and unrealized gain (loss)

Net realized gain (loss) on

Investments 933,502

Swap contracts (226,273 )

707,229

Change in net unrealized appreciation (depreciation) of

Investments 166,252

Swap contracts 50,020

216,272

Net realized and unrealized gain 923,501

Increase in net assets from operations $5,724,864

SEE NOTES TO FINANCIAL STATEMENTS29

STATEMENTS OF CHANGES IN NET ASSETS

Six months ended 4-30-15 Year ended 10-31-14

(unaudited)

Increase (decrease) in net assets

From operations

Net investment income $4,801,363 $10,077,544

Net realized gain 707,229 2,902,375

Change in net unrealized appreciation (depreciation) 216,272 3,628,250

Increase in net assets resulting from operations 5,724,864 16,608,169

Distributions to shareholders

From net investment income (5,414,747 ) (11,186,482 )

Total increase 310,117 5,421,687

Net assets

Beginning of period 185,962,219 180,540,532

End of period $186,272,336 $185,962,219

Undistributed net investment income $465,311 $1,078,695

Shares outstanding

At beginning and end of period 11,743,104 11,743,104

30SEE NOTES TO FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS For the six months ended 4-30-15 (unaudited)

Cash flows from operating activities

Net increase in net assets from operations $5,724,864

Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:

Long-term investments purchased (67,401,864)

Long-term investments sold 69,857,106

Increase in short-term investments (2,556,000)

Net amortization of premium (discount) 1,752,302

Decrease in dividends and interest receivable 49,469

Increase in receivable for investments sold (1,083,113)

Increase in other receivables and prepaid assets (22,077)

Increase in payable for investments purchased 309,265

Decrease in unrealized depreciation of swap contracts (50,020)

Decrease in payable to affiliates (2,550)

Increase in interest payable 16,571

Decrease in other liabilities and accrued expenses (26,205)

Net change in unrealized (appreciation) depreciation on investments (166,252)

Net realized gain on investments (933,502)

Net cash provided by operating activities $5,467,994

Cash flows from financing activities

Distributions to common shareholders (5,414,747)

Net cash used in financing activities ($5,414,747 )

Net increase in cash $53,247

Cash at beginning of period $594

Cash at end of period $53,841

Supplemental disclosure of cash flow information

Cash paid for interest $349,918

SEE NOTES TO FINANCIAL STATEMENTS31

Financial highlights

COMMON SHARES Period Ended 4-30-15¹ 10-31-14 10-31-13 10-31-12 10-31-11 10-31-10

Per share operating performance

Net asset value, beginning of period $15.84 $15.37 $15.88 $14.64 $14.82 $13.42

Net investment income² 0.41 0.86 0.91 1.03 1.08 1.19

Net realized and unrealized gain (loss) on investments 0.07 0.56 (0.39 ) 1.31 (0.13 ) 1.37

Total from investment operations 0.48 1.42 0.52 2.34 0.95 2.56

Less distributions to common shareholders

From net investment income (0.46 ) (0.95 ) (1.03 ) (1.10 ) (1.13 ) (1.16 )

Net asset value, end of period $15.86 $15.84 $15.37 $15.88 $14.64 $14.82

Per share market value, end of period $14.34 $14.29 $14.28 $16.53 $14.81 $14.76

Total return at net asset value (%)^3,4 3.37 ⁵ 10.02 3.51 16.57 6.78 19.90

Total return at market value (%)⁴ 3.60 ⁵ 6.83 (7.61 ) 19.95 8.46 23.85

Ratios and supplemental data

Net assets applicable to common shares, end of period (in millions) $186 $186 $181 $186 $170 $171

Ratios (as a percentage of average net assets):

Expenses before reductions 1.36 ⁶ 1.33 1.35 1.53 1.56 1.78

Expenses including reductions⁷ 1.35 ⁶ 1.32 1.35 1.53 1.56 1.78

Net investment income 5.23 ⁶ 5.50 5.81 6.88 7.34 8.44

Portfolio turnover (%) 25 52 60 50 71 79

Senior securities

Total debt outstanding end of period (in millions) $91 $91 $90 $90 $87 $84

Asset coverage per $1,000 of debt⁸ $3,040 $3,037 $2,999 $3,057 $2,957 $3,051

1 Six months ended 4-30-15. Unaudited.

2 Based on average daily shares outstanding.

3 Total returns would have been lower had certain expenses not been reduced during the applicable periods.

4 Total return based on net asset value reflects changes in the fund's net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that dividend and capital gain distributions, if any, were reinvested. These figures will differ depending upon the level of any discount from or premium to net asset value at which the fund's shares traded during the period.

5 Not annualized.

6 Annualized.

7 Expenses including reductions excluding interest expense were 0.95%, 1.00%, 1.01%, 1.06%,1.04% and 1.12% for the periods ended 4-30-15, 10-31-14, 10-31-13, 10-31-12, 10-31-11 and 10-31-10, respectively.

8 Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 8). As debt outstanding amount changes, level of invested assets may change accordingly. Asset coverage ratio provides a measure of leverage.

32SEE NOTES TO FINANCIAL STATEMENTS

Notes to financial statements (unaudited)

Note 1 — Organization

John Hancock Income Securities Trust (the fund) is a closed-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act).

Note 2 — Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.

Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are valued at the last sale price or official closing price on the exchange where the security was acquired or most likely will be sold. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Swaps are valued using evaluated prices obtained from an independent pricing vendor. Foreign securities are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing vendor. Securities that trade only in the over-the-counter (OTC) market are valued using bid prices. Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.

The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.

The following is a summary of the values by input classification of the fund's investments as of April 30, 2015, by major security category or type:

Total market
value at
4-30-15 Level 1
quoted price Level 2
significant
observable
inputs Level 3
significant
unobservable
inputs

Corporate bonds $133,174,878 — $133,174,878 —

Term loans 923,951 — 923,951 —

Capital preferred securities 3,596,526 — 3,596,526 —

U.S. Government and Agency obligations 61,398,024 — 61,398,024 —

Total market
value at
4-30-15 Level 1
quoted price Level 2
significant
observable
inputs Level 3
significant
unobservable
inputs

Foreign government obligations 329,724 — 329,724 —

Collateralized mortgage obligations 35,083,830 — 34,830,508 $253,322

Asset backed securities 22,504,454 — 22,504,454 —

Common stocks 12,225,419 $12,225,419 — —

Preferred securities 3,170,289 2,232,602 937,687 —

Escrow certificates 123 — — 123

Short-term investments 3,119,000 — 3,119,000 —

Total investments in securities $275,526,218 $14,458,021 $260,814,752 $253,445

Other financial instruments

Interest rate swaps ($515,143 ) — ($515,143 ) —

Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.

Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain if amounts are estimable. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.

Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.

Stripped securities. Stripped securities are financial instruments structured to separate principal and interest cash flows so that one class receives principal payments from the underlying assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped security. If the underlying assets experience greater than anticipated prepayments of principal, the fund may fail to fully recover its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates or prepayments on the underlying securities. In addition, these securities present

additional credit risk such that the fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.

Overdrafts. Pursuant to the custodian agreement, the fund's custodian may, in its discretion, advance funds to the fund to make properly authorized payments. When such payments result in an overdraft, the fund is obligated to repay the custodian for any overdraft, including any costs or expenses associated with the overdraft. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the maximum extent permitted by law, to the extent of any overdraft.

Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Federal income taxes. The fund intends to continue to qualify 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.

Under the Regulated Investment Company Modernization Act of 2010, the fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

For federal income tax purposes, as of October 31, 2014, the fund had a capital loss carryforward of $9,792,647 available to offset future net realized capital gains. The following table details the capital loss carryforward available:

Capital loss carryforward expiring at October 31

2015 2016 2017 2018

$1,203,825 $1,367,076 $6,785,450 $436,296

As of October 31, 2014, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends quarterly and capital gain distributions, if any, annually.

Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. The final determination of tax characteristics of the fund's distribution will occur at the end of the fiscal year and will subsequently be reported to shareholders.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to derivative transactions and amortization and accretion on debt securities.

Statement of cash flows. Information on financial transactions that have been settled through the receipt and disbursement of cash is presented in the Statement of cash flows. The cash amount shown in the Statement of cash flows is the amount included in the fund's Statement of assets and liabilities and represents the cash on hand at the fund's custodian and does not include any short-term investments or cash segregated at the custodian for swap contracts.

Note 3 — Derivative instruments

The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the OTC market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.

Certain swaps are traded through the OTC market and may be regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.

As defined by the ISDA, the fund may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund for OTC transactions is held in a segregated account at the fund's custodian and is noted in the accompanying Fund's investments, or if cash is posted, on the Statement of assets and liabilities. The fund's maximum risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.

Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The fund settles accrued net interest receivable or payable under the swap contracts at specified, future intervals. Swap agreements are privately negotiated in the OTC market or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.

Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may amount to values that are in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. Market risks may also accompany the swap, including interest rate risk. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.

During the six months ended April 30, 2015, the fund used interest rate swaps in anticipation of rising interest rates. The following table summarizes the interest rate swap contracts held as of April 30, 2015.

Counterparty USD notional
amount Payments made
by fund Payments received
by fund Maturity
date Market value

Morgan Stanley
Capital Services $22,000,000 Fixed 1.442500% 3 Month LIBOR ^(a) Aug 2016 ($305,505 )

Counterparty USD notional
amount Payments made
by fund Payments received
by fund Maturity
date Market value

Morgan Stanley
Capital Services 22,000,000 Fixed 1.093750% 3 Month LIBOR ^(a) May 2017 (209,638 )

Total $44,000,000 ($515,143 )

(a) At 4-30-15, the 3-month LIBOR rate was 0.27875%

No interest rate swap positions were entered into or closed during the six months ended April 30, 2015.

Fair value of derivative instruments by risk category

The table below summarizes the fair value of derivatives held by the fund at April 30, 2015 by risk category:

Risk Statement of assets and
liabilities location Financial
instruments location Asset
derivatives
fair value Liabilities
derivative
fair value

Interest rate contracts Swap contracts, at value Interest rate swaps — ($515,143 )

Effect of derivative instruments on the Statement of operations

The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended April 30, 2015:

Risk Statement of operations location Swap contracts

Interest rate contracts Net realized gain (loss) ($226,273 )

The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended April 30, 2015:

Risk Statement of operations location Swap contracts

Interest rate contracts Change in unrealized appreciation (depreciation) $50,020

Note 4 — Guarantees and indemnifications

Under the fund's organizational documents, its Officers and Trustees are indemnified against certain liabilities 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. The risk of material loss from such claims is considered remote.

Note 5 — Fees and transactions with affiliates

John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. The Advisor is an indirect, wholly owned subsidiary of Manulife Financial Corporation (MFC).

Management fee. The fund has an investment advisory agreement with the Advisor under which the fund pays a daily management fee to the Advisor, on an annual basis, equal to the sum of (a) 0.650% of the first $150 million of the fund's average daily managed assets (net assets plus borrowings under the Credit Facility Agreement) (see Note 7), (b) 0.375% of the next $50 million of the fund's average daily managed assets, (c) 0.350% of the next $100 million of the fund's average daily managed assets and (d) 0.300% of the fund's average daily managed assets in excess of $300 million. The Advisor has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.

The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the

participating portfolios in proportion to the daily net assets of each fund. During the six months ended April 30, 2015, this waiver amounted to 0.01% of the fund's average net assets on an annualized basis. This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.

The expense reductions described above amounted to $10,418 for the six months ended April 30, 2015.

The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended April 30, 2015 were equivalent to a net annual effective rate of 0.51% of the fund's average daily managed assets.

Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These accounting and legal services fees incurred for the six months ended April 30, 2015 amounted to an annual rate of 0.01% of the fund's average daily managed assets.

Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. Each independent Trustee receives from the fund and the other John Hancock closed-end funds an annual retainer. In addition, Trustee out-of-pocket expenses are allocated to each fund based on its net assets relative to other funds within the John Hancock group of funds complex.

Note 6 — Fund share transactions

On March 12, 2015, the Board of Trustees approved a share repurchase plan. Under the share repurchase plan, the fund may purchase in the open market up to 10% of its outstanding common shares as of February 28, 2015. The current share repurchase plan will remain in effect between March 13, 2015 and December 31, 2015. During the six months ended April 30, 2015, there was no activity under the share repurchase plan.

Note 7 — Leverage risk

The fund utilizes a Credit Facility Agreement (CFA) to increase its assets available for investment. When the fund leverages its assets, common shareholders bear the fees associated with the CFA and have potential to benefit or be disadvantaged from the use of leverage. The Advisor's fee is also increased in dollar terms from the use of leverage. Consequently, the fund and the Advisor may have differing interests in determining whether to leverage the fund's assets. Leverage creates risks that may adversely affect the return for the holders of common shares, including:

•	the likelihood of greater volatility of net asset value and market price of common shares;
•	fluctuations in the interest rate paid for the use of the credit facility;
•	increased operating costs, which may reduce the fund's total return;
•	the potential for a decline in the value of an investment acquired through leverage, while the fund's obligations under such leverage remains fixed; and
•	the fund is more likely to have to sell securities in a volatile market in order to meet asset coverage or other debt compliance requirements.

To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the fund's return will be greater than if leverage had not been used, conversely, returns would be lower if the cost of the leverage exceeds the income or capital appreciation derived. In addition to the risks created by the fund's use of leverage, the fund is subject to the risk that it would be unable to timely, or at all, obtain replacement financing if the CFA is terminated. Were this to happen, the fund would be required to de-leverage, selling securities at a potentially inopportune time and incurring tax consequences. Further, the fund's ability to generate income from the use of leverage would be adversely affected.

Note 8 — Credit facility agreement

The fund has entered into a CFA with Credit Suisse Securities (USA) LLC (CSSU), pursuant to which the fund borrows money to increase its assets available for investment. In accordance with the 1940 Act, the fund's borrowings under the CFA will not exceed 33 1/3% of the fund's managed assets (net assets plus borrowings) at the time of any borrowing.

The fund pledges a portion of its assets as collateral to secure borrowings under the CFA. Such pledged assets are held in a special custody account with the fund's custodian. The amount of assets required to be pledged by the fund is determined in accordance with the CFA. The fund retains the benefits of ownership of assets pledged to secure borrowings under the CFA. Interest charged is at the rate of one month LIBOR (London Interbank Offered Rate) plus 0.70% and is payable monthly. Prior to January 1, 2015, the interest rate charged under CFA was a rate of three month LIBOR plus 0.41% (paid monthly). As of April 30, 2015, the fund had borrowings of $91,300,000, at an interest rate of 0.88%, which is reflected in the Credit facility agreement payable on the Statement of assets and liabilities. During the six months ended April 30, 2015, the average borrowings under the CFA and the effective average interest rate were $91,300,000 and 0.81%, respectively.

The fund may terminate the CFA with CSSU at any time. If certain asset coverage and collateral requirements or other covenants are not met, the CFA could be deemed in default and result in termination. Absent a default or facility termination event, CSSU generally is required to provide the fund with 270 calendar days' notice prior to terminating or amending the CFA.

Note 9 — Purchase and sale of securities

Purchases and sales of securities, other than short-term investments and U.S. Treasury obligations, amounted to $41,036,382 and $51,477,292, respectively, for the six months ended April 30, 2015. Purchases and sales of U.S. Treasury obligations aggregated $26,365,482 and $18,379,814, respectively, for the six months ended April 30, 2015.

ADDITIONAL INFORMATION

Unaudited

Investment objective and policy

The fund is a closed-end, diversified management investment company, common shares of which were initially offered to the public on February 14, 1973 and are publicly traded on the New York Stock Exchange (the NYSE). The fund's investment objective is to generate a high level of current income consistent with prudent investment risk. There can be no assurance that the fund will achieve its investment objective. The fund utilizes a credit facility agreement to increase its assets available for investments.

Under normal circumstances, the fund invests at least 80% of its net assets (plus borrowings for investment purposes) in income securities, consisting of the following: (i) marketable corporate debt securities, (ii) governmental obligations and (iii) cash and commercial paper. The fund will notify shareholders at least 60 days prior to any change in this 80% investment policy. The fund may invest up to 20% of its total assets in income-producing preferred securities and common stocks.

Effective March 20, 2013, the Board of Trustees approved a revision to the fund's investment policy regarding the amount of the fund's securities that is rated investment grade. The new investment policy provides that the fund will invest at least 75% of its net assets (plus borrowings for investment purposes) in debt securities that are rated, at the time of acquisition, investment grade (i.e., at least "Baa" by Moody's Investors Service, Inc. (Moody's) or "BBB" by Standard & Poor's Ratings Services (S&P)), or in unrated securities determined by the fund's investment advisor or subadvisor to be of comparable credit quality. Under the new investment policy, the fund can invest up to 25% of its net assets (plus borrowings for investment purposes) in debt securities that are rated, at the time of acquisition, below investment grade (junk bonds) (i.e., rated "Ba" or lower by Moody's or "BB" or lower by S&P), or in unrated securities determined by the fund's advisor or subadvisor to be of comparable quality.

Dividends and distributions

During the six months ended April 30, 2015, dividends from net investment income totaling $0.4611 per share were paid to shareholders. The dates of payments and the amounts per share were as follows:

Payment date Income distributions

December 31, 2014 $0.2411

March 31, 2015 0.2200

Total $0.4611

Shareholder meeting

The fund held its Annual Meeting of Shareholders on January 26, 2015. The following proposal was considered by the shareholders:

Proposal: Election of twelve (12) Trustees to serve for a three-year term ending at the 2018 Annual Meeting of Shareholders. Each Trustee was re-elected by the fund's shareholders and the votes cast with respect to each Trustee are set forth below.

Total votes
for the nominee Total votes withheld
from the nominee

Independent Trustees

Charles L. Bardelis 7,582,881.113 291,838.637

Peter S. Burgess 7,580,257.113 294,462.637

William H. Cunningham 7,576,492.113 298,227.637

Grace K. Fey 7,594,233.465 280,486.285

Theron S. Hoffman 7,580,580.465 294,139.285

Deborah C. Jackson 7,586,725.465 287,994.285

Hassell H. McClennan 7,583,635.465 291,084.285

James M. Oates 7,577,232.113 297,487.637

Steven R. Pruchansky 7,578,379.465 296,340.285

Gregory A. Russo 7,584,279.465 290,440.285

Non-Independent Trustee

Craig Bromley 7,571,029.465 303,690.265

Warren A. Thomson 7,531,815.465 342,904.285

Mr. James R. Boyle was not up for election; the Board appointed Mr. Boyle to serve as a Non-Independent Trustee on March 10, 2015.

More information

Trustees

James M. Oates, Chairperson
Steven R. Pruchansky, Vice Chairperson
Charles L. Bardelis*
James R. Boyle†#
Craig Bromley†
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Theron S. Hoffman*
Deborah C. Jackson
Hassell H. McClellan
Gregory A. Russo
Warren A. Thomson†

Officers

Andrew G. Arnott
President

John J. Danello
Senior Vice President, Secretary,
and Chief Legal Officer

Francis V. Knox, Jr.
Chief Compliance Officer

Charles A. Rizzo
Chief Financial Officer

Salvatore Schiavone
Treasurer

Investment advisor

John Hancock Advisers, LLC

Subadvisor

John Hancock Asset Management a division of Manulife Asset Management (US) LLC

Custodian

State Street Bank and Trust Company

Transfer agent

Computershare Shareowner Services, LLC

Legal counsel

K&L Gates LLP

Stock symbol

Listed New York Stock Exchange: JHS

*Member of the Audit Committee
†Non-Independent Trustee
#Effective 3-10-15

You can also contact us:

800-852-0218
jhinvestments.com
Regular mail:

Computershare
P.O. Box 30170
College Station, TX 77842-3170

The fund's proxy voting policies and procedures, as well as the fund's proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.

The fund's complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 800-SEC-0330 to receive information on the operation of the SEC's Public Reference Room.

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-852-0218.

The report is certified under the Sarbanes-Oxley Act, which requires closed-end funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects.

Family of funds

DOMESTIC EQUITY FUNDS

Balanced

Blue Chip Growth

Classic Value

Disciplined Value

Disciplined Value Mid Cap

Equity-Income

Fundamental All Cap Core

Fundamental Large Cap Core

Fundamental Large Cap Value

Large Cap Equity

New Opportunities

Select Growth

Small Cap Equity

Small Cap Value

Small Company

Strategic Growth

U.S. Equity

U.S. Global Leaders Growth

Value Equity

GLOBAL AND INTERNATIONAL EQUITY FUNDS

Disciplined Value International

Emerging Markets

Emerging Markets Equity

Global Equity

Global Opportunities

Global Shareholder Yield

Greater China Opportunities

International Core

International Growth

International Small Company

International Value Equity

INCOME FUNDS

Bond

California Tax-Free Income

Core High Yield

Emerging Markets Debt

Floating Rate Income

Focused High Yield

Global Income

Government Income

High Yield Municipal Bond

INCOME FUNDS (continued)

Income

Investment Grade Bond

Money Market

Short Duration Credit Opportunities

Spectrum Income

Strategic Income Opportunities

Tax-Free Bond

ALTERNATIVE AND SPECIALTY FUNDS

Absolute Return Currency

Alternative Asset Allocation

Enduring Equity

Financial Industries

Global Absolute Return Strategies

Global Conservative Absolute Return

Natural Resources

Redwood

Regional Bank

Seaport

Technical Opportunities

ASSET ALLOCATION

Income Allocation Fund

Lifestyle Aggressive Portfolio

Lifestyle Balanced Portfolio

Lifestyle Conservative Portfolio

Lifestyle Growth Portfolio

Lifestyle Moderate Portfolio

Retirement Choices Portfolios (2010-2055)

Retirement Living Portfolios (2010-2055)

Retirement Living II Portfolios (2010-2055)

CLOSED-END FUNDS

Financial Opportunities

Hedged Equity & Income

Income Securities Trust

Investors Trust

Preferred Income

Preferred Income II

Preferred Income III

Premium Dividend

Tax-Advantaged Dividend Income

Tax-Advantaged Global Shareholder Yield

The fund's investment objectives, risks, charges, and expenses are included in the prospectus and should be considered carefully before investing. For a prospectus, contact your financial professional, call John Hancock Investments at 800-852-0218, or visit the fund's website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.

John Hancock Investments

A trusted brand

John Hancock has helped individuals and institutions build and
protect wealth since 1862. Today, we are one of America's strongest
and most-recognized brands.

A better way to invest

As a manager of managers, we search the world to find proven
portfolio teams with specialized expertise for every fund we offer,
then apply vigorous investment oversight to ensure they continue
to meet our uncompromising standards.

Results for investors

Our unique approach to asset management has led to a diverse set
of investments deeply rooted in investor needs, along with strong
risk-adjusted returns across asset classes.

John Hancock Advisers, LLC
601 Congress Street n Boston, MA 02210-2805
800-843-0090 n jhinvestments.com

MF230736 P6SA 4/15
6/15

ITEM 2. CODE OF ETHICS.

Not applicable.

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.

(a) Not applicable.
(b)

			Total number of	Maximum number of
			shares purchased	shares that may yet
	Total number of	Average price per	as part of publicly	be purchased under
Period	shares purchased	share	announced plans*	the plans
Mar-15	-	-	-	1,174,310*
Apr-15	-	-	-	1,174,310
Total	-	-

*In March 2015, the Board of Trustees approved a share repurchase plan, which has been subsequently reviewed and approved by the Board of Trustees. Under the current share repurchase plan, the Fund may purchase in the open market up to 10% of its outstanding common shares as of February 28, 2015. The current share plan will remain in effect between March 13, 2015 and December 31, 2015.

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

The registrant has adopted procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR.

See attached “John Hancock Funds – Nominating, Governance and Administration 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) 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 – Nominating, Governance and Administration Committee Charter.”

(c)(2) Contact person at the registrant.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

John Hancock Income Securities Trust

By:	/s/ Andrew Arnott
	Andrew Arnott
	President

Date:	June 23, 2015

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/ Andrew Arnott
	Andrew Arnott
	President

Date:	June 23, 2015



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

Date:	June 23, 2015

Date of fiscal year end:	October 31

Date of reporting period:	April 30, 2015


United States	88.6
France	1.8
United Kingdom	1.4
Luxembourg	1.2
Netherlands	1.1
Canada	0.9
Cayman Islands	0.7
Mexico	0.7
Japan	0.4
Ireland	0.3
Other countries	2.9
Total	100.0
As a percentage of total investments.


	Jeffrey N. Given, CFA On the fund since 2002 Investing since 1993
	Howard C. Greene, CFA On the fund since 2002 Investing since 1979


As of 4-30-15 (unaudited)
	Rate (%)	Maturity date	Par value^		Value
Corporate bonds 71.5% (48.3% of Total investments)					$133,174,878
(Cost $127,630,868)
Consumer discretionary 8.9%					16,525,540
Auto components 1.1%
Dana Holding Corp. (Z)	6.000	09-15-23		395,000	419,688
Delphi Corp. (Z)	5.000	02-15-23		1,005,000	1,082,860
Stackpole International Intermediate Company SA (S)(Z)	7.750	10-15-21		245,000	243,775
ZF North America Capital, Inc. (S)	4.750	04-29-25		280,000	280,700
Automobiles 2.9%
Ford Motor Company (Z)	4.750	01-15-43		145,000	151,452
Ford Motor Credit Company LLC (Z)	5.875	08-02-21		1,803,000	2,107,586
Ford Motor Credit Company LLC (Z)	8.000	12-15-16		330,000	364,225
General Motors Company (Z)	4.875	10-02-23		445,000	480,120
General Motors Company (Z)	6.250	10-02-43		380,000	453,389
General Motors Financial Company, Inc.	3.450	04-10-22		430,000	427,185
General Motors Financial Company, Inc. (Z)	4.000	01-15-25		550,000	553,630
General Motors Financial Company, Inc. (Z)	4.375	09-25-21		315,000	334,650
Nissan Motor Acceptance Corp. (S)(Z)	1.950	09-12-17		490,000	497,850
Hotels, restaurants and leisure 0.9%
CCM Merger, Inc. (S)(Z)	9.125	05-01-19		380,000	412,775
International Game Technology PLC (S)	6.500	02-15-25		225,000	218,250
MGM Resorts International (Z)	6.000	03-15-23		455,000	470,925
Seminole Tribe of Florida, Inc. (S)(Z)	6.535	10-01-20		575,000	623,875
Waterford Gaming LLC (H)(S)	8.625	09-15-49		99,739	0
Household durables 0.2%
Argos Merger Sub, Inc. (S)(Z)	7.125	03-15-23		120,000	126,000
DR Horton, Inc. (Z)	4.000	02-15-20		165,000	167,475
Internet and catalog retail 0.8%
Amazon.com, Inc. (Z)	4.950	12-05-44		515,000	546,473
QVC, Inc. (Z)	4.375	03-15-23		325,000	328,748
QVC, Inc. (Z)	5.125	07-02-22		255,000	268,303
QVC, Inc. (Z)	5.450	08-15-34		315,000	303,940
Media 1.9%
21st Century Fox America, Inc.	6.150	03-01-37		165,000	202,239
21st Century Fox America, Inc.	6.400	12-15-35		150,000	192,213
21st Century Fox America, Inc.	7.750	01-20-24		1,020,000	1,312,704
Altice Financing SA (S)(Z)	6.625	02-15-23		200,000	206,000
AMC Entertainment, Inc. (Z)	5.875	02-15-22		390,000	404,625
Sirius XM Radio, Inc. (S)(Z)	5.250	08-15-22		845,000	893,588
Time Warner Cable, Inc. (Z)	8.250	04-01-19		350,000	411,072


	Shares	Value
Information technology 0.9%		$1,609,660
Semiconductors and semiconductor equipment 0.5%
Intel Corp. (Z)	26,000	846,300
Technology hardware, storage and peripherals 0.4%
Seagate Technology PLC (Z)	13,000	763,360
Materials 0.3%		549,000
Chemicals 0.3%
E.I. du Pont de Nemours & Company (Z)	7,500	549,000
Telecommunication services 0.4%		731,380
Diversified telecommunication services 0.4%
Verizon Communications, Inc. (Z)	14,500	731,380
Preferred securities (b) 1.7% (1.2% of Total investments)		$3,170,289
(Cost $3,176,147)
Consumer staples 0.3%		585,156
Food and staples retailing 0.3%
Ocean Spray Cranberries, Inc., Series A, 6.250% (S)	6,250	585,156
Financials 0.7%		1,333,900
Banks 0.1%
Wells Fargo & Company, Series L, 7.500%	192	234,000
Consumer finance 0.5%
Ally Financial, Inc., 7.000% (S)	346	352,531
GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + 5.785%) (Z)	24,985	656,606
Real estate investment trusts 0.1%
Weyerhaeuser Company, 6.375% (I)	1,700	90,763
Industrials 0.2%		359,155
Aerospace and defense 0.2%
United Technologies Corp., 7.500% (Z)	6,106	359,155
Telecommunication services 0.1%		207,267
Diversified telecommunication services 0.1%
Intelsat SA, 5.750% (Z)	5,900	207,267
Utilities 0.4%		684,811
Electric utilities 0.1%
Exelon Corp., 6.500% (Z)	4,341	213,881
Multi-utilities 0.3%
Dominion Resources, Inc., 6.375% (I)(Z)	9,485	470,930


The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
^ All par values are denominated in U.S. dollars unless otherwise indicated.
Key to Security Abbreviations and Legend
ADR		American Depositary Receipts
IO		Interest Only Security — (Interest Tranche of Stripped Mortgage Pool). Rate shown is the effective yield at period end.
ISDAFIX		International Swaps and Derivatives Association Fixed Interest Rate Swap Rate
LIBOR		London Interbank Offered Rate
PIK		Payment-in-kind
REIT		Real Estate Investment Trust
(a)		Includes hybrid securities with characteristics of both equity and debt that trade with and pay, interest income.
(b)		Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.
(H)		Non-income producing - Issuer is in default.
(I)		Non-income producing security.
(M)		Term loans are variable rate obligations. The coupon rate shown represents the rate at period end.
(P)		Variable rate obligation. The coupon rate shown represents the rate at period end.
(Q)		Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.
(S)		These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $73,034,988 or 39.2% of the fund's net assets as of 4-30-15.
(Z)		All or a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 4-30-15 was $181,750,733.
†		At 4-30-15, the aggregate cost of investment securities for federal income tax purposes was $266,014,333. Net unrealized appreciation aggregated $9,511,885, of which $13,814,806 related to appreciated investment securities and $4,302,921 related to depreciated investment securities.



Cash flows from operating activities
Net increase in net assets from operations	$5,724,864
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Long-term investments purchased	(67,401,864)
Long-term investments sold	69,857,106
Increase in short-term investments	(2,556,000)
Net amortization of premium (discount)	1,752,302
Decrease in dividends and interest receivable	49,469
Increase in receivable for investments sold	(1,083,113)
Increase in other receivables and prepaid assets	(22,077)
Increase in payable for investments purchased	309,265
Decrease in unrealized depreciation of swap contracts	(50,020)
Decrease in payable to affiliates	(2,550)
Increase in interest payable	16,571
Decrease in other liabilities and accrued expenses	(26,205)
Net change in unrealized (appreciation) depreciation on investments	(166,252)
Net realized gain on investments	(933,502)
Net cash provided by operating activities	$5,467,994
Cash flows from financing activities
Distributions to common shareholders	(5,414,747)
Net cash used in financing activities	($5,414,747	)
Net increase in cash	$53,247
Cash at beginning of period	$594
Cash at end of period	$53,841
Supplemental disclosure of cash flow information
Cash paid for interest	$349,918





COMMON SHARES Period Ended		4-30-15¹		10-31-14		10-31-13		10-31-12		10-31-11		10-31-10
Per share operating performance
Net asset value, beginning of period		$15.84		$15.37		$15.88		$14.64		$14.82		$13.42
Net investment income²		0.41		0.86		0.91		1.03		1.08		1.19
Net realized and unrealized gain (loss) on investments		0.07		0.56		(0.39	)	1.31		(0.13	)	1.37
Total from investment operations		0.48		1.42		0.52		2.34		0.95		2.56
Less distributions to common shareholders
From net investment income		(0.46	)	(0.95	)	(1.03	)	(1.10	)	(1.13	)	(1.16	)
Net asset value, end of period		$15.86		$15.84		$15.37		$15.88		$14.64		$14.82
Per share market value, end of period		$14.34		$14.29		$14.28		$16.53		$14.81		$14.76
Total return at net asset value (%)^3,4		3.37	⁵	10.02		3.51		16.57		6.78		19.90
Total return at market value (%)⁴		3.60	⁵	6.83		(7.61	)	19.95		8.46		23.85
Ratios and supplemental data
Net assets applicable to common shares, end of period (in millions)		$186		$186		$181		$186		$170		$171
Ratios (as a percentage of average net assets):
	Expenses before reductions	1.36	⁶	1.33		1.35		1.53		1.56		1.78
	Expenses including reductions⁷	1.35	⁶	1.32		1.35		1.53		1.56		1.78
	Net investment income	5.23	⁶	5.50		5.81		6.88		7.34		8.44
Portfolio turnover (%)		25		52		60		50		71		79
Senior securities
Total debt outstanding end of period (in millions)		$91		$91		$90		$90		$87		$84
Asset coverage per $1,000 of debt⁸		$3,040		$3,037		$2,999		$3,057		$2,957		$3,051


1	Six months ended 4-30-15. Unaudited.
2	Based on average daily shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
4	Total return based on net asset value reflects changes in the fund's net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that dividend and capital gain distributions, if any, were reinvested. These figures will differ depending upon the level of any discount from or premium to net asset value at which the fund's shares traded during the period.
5	Not annualized.
6	Annualized.
7	Expenses including reductions excluding interest expense were 0.95%, 1.00%, 1.01%, 1.06%,1.04% and 1.12% for the periods ended 4-30-15, 10-31-14, 10-31-13, 10-31-12, 10-31-11 and 10-31-10, respectively.
8	Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 8). As debt outstanding amount changes, level of invested assets may change accordingly. Asset coverage ratio provides a measure of leverage.


	Total market value at 4-30-15	Level 1 quoted price	Level 2 significant observable inputs	Level 3 significant unobservable inputs
Corporate bonds	$133,174,878	—	$133,174,878	—
Term loans	923,951	—	923,951	—
Capital preferred securities	3,596,526	—	3,596,526	—
U.S. Government and Agency obligations	61,398,024	—	61,398,024	—


Capital loss carryforward expiring at October 31
2015	2016	2017	2018
$1,203,825	$1,367,076	$6,785,450	$436,296


Risk	Statement of operations location	Swap contracts
Interest rate contracts	Net realized gain (loss)	($226,273	)


Payment date	Income distributions
December 31, 2014	$0.2411
March 31, 2015	0.2200
Total	$0.4611


	Total votes for the nominee	Total votes withheld from the nominee
Independent Trustees
Charles L. Bardelis	7,582,881.113	291,838.637
Peter S. Burgess	7,580,257.113	294,462.637
William H. Cunningham	7,576,492.113	298,227.637
Grace K. Fey	7,594,233.465	280,486.285
Theron S. Hoffman	7,580,580.465	294,139.285
Deborah C. Jackson	7,586,725.465	287,994.285
Hassell H. McClennan	7,583,635.465	291,084.285
James M. Oates	7,577,232.113	297,487.637
Steven R. Pruchansky	7,578,379.465	296,340.285
Gregory A. Russo	7,584,279.465	290,440.285
Non-Independent Trustee
Craig Bromley	7,571,029.465	303,690.265
Warren A. Thomson	7,531,815.465	342,904.285


	John Hancock Advisers, LLC 601 Congress Street n Boston, MA 02210-2805 800-843-0090 n jhinvestments.com
	MF230736	P6SA 4/15 6/15