N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 4630

John Hancock Investment Trust III
(Exact name of registrant as specified in charter)

601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)

Alfred P. Ouellette
Senior Counsel and Assistant Secretary

601 Congress Street

Boston, Massachusetts 02210
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-663-4324

Date of fiscal year end:	October  31
Date of reporting period:	October  31, 2007

ITEM 1. REPORT TO SHAREHOLDERS.

TABLE OF CONTENTS 

Your fund at a glance 

page 1 

Manager’s report 

page 2 

A look at performance 

page 6 

Your expenses 

page 8 

Fund’s investments 

page 10 

Financial statements 

page 14 

Notes to financial 

statements 

page 22 

Trustees and officers 

page 34 

For more information 

page 40 

CEO corner

To Our Shareholders,

The performance of Greater China financial markets for the year ended October 31, 2007 was nothing short of spectacular. Even with a sharp drop in February 2007, which briefly spread to other markets worldwide, Greater China markets treated investors to returns in excess of 100% during the period. The results were primarily driven by the continued dynamic growth of the Chinese economy and a speculative surge in demand for stocks by retail investors.

In the midst of this euphoria, however, talk of a bubble on the verge of bursting has grown stronger. This same fear caused the sell-off earlier this year, and analysts and pundits are still waiting for the other shoe to drop, believing that this level of return is unsustainable. Indeed, investors who survived the three-year U.S. bear market from 2000 through 2002 that followed the Internet bubble burst can be forgiven, if not applauded, for feeling apprehensive about the Greater China financial markets at this juncture. John Hancock Greater China Opportunities Fund also performed exceedingly well in this period, providing shareholders with more than a 110% return. On the following pages, our fund manager explains performance, but also interjects a strong note of caution. We couldn’t agree more and encourage our shareholders to scale back their expectations. In 2006, this fund rose by 70%, and already this year, the Fund has returned 7 7% year-to-date through October 2007.

We remain bullish on the long-term outlook for this region and believe there is a place in almost any diversified portfolio for exposure to this dynamic part of the world. But given the Fund’s higher volatility and its explosive returns since inception in 2005, it may be time to consult with your investment professional about locking in some profits and ensuring that Greater China has not grown to be too large a piece of your portfolio. Although larger and more established than many emerging markets, the Greater China region functions in many ways as an emerging market and carries with it high levels of risk and volatility. While we are extremely pleased with the Fund’s performance, we would like to take this opportunity to remind you that the Greater China Opportunities Fund is not for the faint of heart and should play a supporting role in a well-diversified portfolio. Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of October 31, 2007. They are subject to change at any time.

Your fund at a glance

The Fund seeks long-term capital appreciation by normally investing at least 80% of its assets in equity securities of companies located in China, Hong Kong or Taiwan.

Over the last twelve months

► The activity in Greater China stocks reached speculative bubble proportions, as the Fund's benchmark rose by more than 150% in a one-year period.

► While the Fund participated in this raging bull market and more than doubled shareholders' money, our emphasis on quality, rotation to less-volatile names and an influx of cash caused the Fund to trail the benchmark.

► The 17th Chinese Communist Party Congress convened in October and emerged with a firm consensus that more effective steps must be taken to slow the nation's overheating economy and achieve balanced growth.

Top 10 issuers
China Mobile (Hong Kong) Ltd.	11.9%	CNOOC Ltd.	3.1%
PetroChina Co., Ltd.	6.2%	China Shenhua Energy Co., Ltd.	1.9%
China Life Insurance Co., Ltd.	5.8%	China Telecom Corp. Ltd.	1.8%
China Construction Bank	4.8%	China Communications
		Constructions Ltd.	1.8%
Industrial & Commercial Bank of China	4.2%
China Petroleum and Chemical Corp.
(Sinopec)	3.5%

As a percentage of net assets on October 31, 2007.

1

Manager’s report

John Hancock
Greater China Opportunities Fund

Stocks in Greater China markets delivered extraordinarily strong gains during the 12-month review period, as speculation was rampant and many stocks rose for reasons having little to do with the fundamental attractiveness of their underlying businesses. The Chinese economy continued to expand at a brisk pace, with gross domestic product (GDP) rising 11.5% through the first three quarters of 2007, well above the government’s recent target of 8% to 9%. GDP growth remained exceptionally robust despite the government’s attempts to cool it with repeated increases in both interest rates and the banking reserve requirement, the latter of which was hiked by eight increments of 0.50% to end the period at 13%.

As was the case in previous periods, speculation was most evident in the Shanghai Stock Exchange Composite Index A-shares, which include many lower-quality issues with less transparency in their corporate governance. The Fund continued to concentrate its buying in H-shares, which are listed in Hong Kong and tend to be stocks of companies that are financially stronger, more established in their respective markets and more shareholder-friendly. To help offset money pouring into China through corporate investments and the country’s soaring trade surplus, the government announced in August that it planned to allow mainland

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE AND WHAT’S BEHIND THE NUMBERS
China Power	▲	Injection of assets by the government
New Energy
China Everbright	▲	Turnaround story
Century Sunshine	▼	Rising costs
Ecological
Technology
Holdings

2

Portfolio Manager, MFC Global Investment Management (U.S.A.) Limited
Pauline Dan, CFA

Chinese citizens to invest in the Hong Kong stock market, which would
constitute the most significant easing to date of the barriers that prevent
most Chinese from investing internationally. Although the plan had yet
to be implemented at period end, this announcement sparked a fresh wave
of buying in Hong Kong stocks.

“Stocks in Greater China markets
delivered extraordinarily strong
gains during the 12-month review
period…”

Looking at performance

For the 12 months ended October 31, 2007, John Hancock Greater China Opportunities Fund’s Class A, Class B, Class C and Class I shares returned 111.87%, 110.50%, 110.51% and 112.93%, respectively, at net asset value. Class NAV shares, which were launched December 28, 2006, returned 80.28% from inception through October 31, 2007. By comparison, the average Pacific/Asia ex-Japan fund monitored by Morningstar, Inc. returned 95.69%, ¹ while the Morgan Stanley Capital International (MSCI) China Index finished with a 155.68% return. Keep in mind that your returns will differ from those listed above if you were not invested in the Fund for the entire period or did not reinvest all distributions. Historical performance information can be found on pages six and seven.

As the period progressed and valuations became increasingly stretched, we positioned the Fund more defensively, rotating money out of higher-volatility names and into more stable stocks, largely the shares of companies based in Hong Kong and Taiwan. That decision, together with the Fund’s emphasis on quality, put us in the peculiar position of more than doubling our shareholders’ money yet trailing our benchmark by a substantial margin. However, although our cautious stance hurt performance in the short term, we believe it will help the Fund’s results over the longer term. History

Greater China Opportunities Fund

3

has repeatedly shown that those who throw caution to the wind during speculative manias live to regret it. Additionally, our performance lagged to some extent because of the surplus of cash we carried, a result of how rapidly the Fund’s assets grew in a period of soaring share prices.

Contributors and detractors

The Fund benefited from its positions in a number of stocks. For example, in the technology sector, we received a boost from China Power New Energy Development Ltd. This company, which is involved in alternative energy generation, was helped by an injection of assets by the Chinese government. In the financial sector, an underweighting in China CITIC Bank H was helpful, as was our overweighting in China Everbright Ltd. The latter was a turnaround story, with businesses in securities and banking, and the company’s banking unit was expected to gain its own exchange listing. Another financials holding that contributed to performance was China Insurance International H. A small property and casualty insurance company, China Insurance entered the life insurance business with good results. In the materials sector, Sino-Forest Corp. was a standout, returning over 400%. The largest forest management company in China, Sino-Forest was aided by rising demand for wood pulp. We sold our stakes in China Power, China CITIC Bank and China Insurance International during the period.

On the negative side, the sectors that detracted most from performance versus the benchmark were industrials, financials and materials. In industrials, not having a position in China COSCO Holdings Co. Ltd., an H-share stock, was costly, as the share price rocketed to a gain of almost 1,000% following an injection of assets by the government. In materials, organic fertilizer maker Century Sunshine Ecological Technology Holdings Ltd. suffered from rising costs and delays in the start-up of a manufacturing facility, and we sold our position. Another detractor from the materials sector, Aluminum Corp. of China Ltd., hurt us because of the Fund’s underweighting.

SECTOR DISTRIBUTION2
Financials	31%
Industrials	19%
Energy	15%
Telecommunication
services	15%
Materials	5%
Consumer discretionary	4%
Information technology	2%
Consumer staples	2%
Utilities	2%

As happened with many stocks during the period, the mere announcement of the company’s intention to obtain an A-share listing was enough to trigger an outsized gain. In financials, a negligible exposure to Ping An Insurance (Group) Co. of

Greater China Opportunities Fund

4

China was counterproductive. Despite having what we considered an excessively rich valuation, the stock gained more than 300% on the strength of the company’s progress in transforming itself into a financial supermarket and solid returns on its investment portfolio.

“As the period progressed and
valuations became increasingly
stretched, we positioned the
Fund more defensively…”

Outlook

In October, the Chinese Communist Party convened in Beijing for a Party Congress, an event that is held only once every five years. Much attention was focused on this gathering because it came at such a critical time in China’s development. One significant development was that a new generation of politicians began to gain influence in the party. Further, there was a consensus that monetary policy to date has been ineffective in producing balanced growth and preventing the economy from overheating. Given these developments, we think it likely that more stringent measures will be adopted at some point soon to cool economic growth in China. We cannot forecast exactly when this will occur, but it will likely coincide with a return to less-speculative stock market conditions and a renewed investor focus on fundamentals. We therefore caution our shareholders to moderate their expe ctations about future returns for the Fund. For our part, we will continue to invest in companies with sound fundamentals, knowing that such a policy best serves our shareholders’ long-term interests.

This commentary reflects the views of the portfolio manager through the end of the Fund’s period discussed in this report. The manager’s statements reflect her own opinions. As such, they are in no way guarantees of future events, and are not intended to be used as investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant.

International investing involves special risks such as political, economic and currency risks and differences in accounting standards and financial reporting. Although they are larger and/or more established than many emerging markets, the markets of Greater China function in many ways as emerging markets, and carry the high levels of risk associated with emerging markets. Non-diversified funds tend to be more volatile than diversified funds and the market as a whole.

¹ Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

² As a percentage of net assets on October 31, 2007.

Greater China Opportunities Fund

5

A look at performance

For the periods ended October 31, 2007

		Average annual returns				Cumulative total returns
		with maximum sales charge (POP)				with maximum sales charge (POP)
	Inception				Since				Since
Class	date	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception
A	6-9-05	101.28%	—	—	62.22%	101.28%	—	—	218.93%
B	6-9-05	105.50	—	—	63.94	105.50	—	—	227.10
C	6-9-05	109.51	—	—	64.57	109.51	—	—	230.10
I1	6-9-05	112.93	—	—	66.52	112.93	—	—	239.55
NAV1	12-28-06	—	—	—	—	—	—	—	80.28

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1 to 6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class I and Class NAV shares.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available Prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The gross expenses are as follows: Class A — 1.92%, Class B — 2.62%, Class C — 2.62%, Class I — 1.49%, Class NAV — 1.25% .

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

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Fund’s performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable.

¹ For certain types of investors as described in the Fund’s Class I and NAV share prospectuses.

Greater China Opportunities Fund

6

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Greater China
Opportunities Fund Class A shares for the period indicated. For comparison, we’ve shown
the same investment in the MSCI China Index.

			With maximum
Class	Period beginning	Without sales charge	sales charge	Index
B	6-9-05	$33,010	$32,710	$42,820
C2	6-9-05	33,010	33,010	42,820
I3	6-9-05	33,955	33,955	42,820
NAV3	12-28-06	18,028	18,028	20,381

Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Fund’s Class B, Class C and Class I shares, respectively, as of October 31, 2007. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

MSCI China Index is an unmanaged market capitalization-weighted index of Chinese companies available to non-domestic investors.

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

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

² No contingent deferred sales charge applicable.

³ For certain types of investors as described in the Fund’s Class I and NAV share prospectuses.

Greater China Opportunities Fund

7

Your expenses

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

Understanding fund expenses

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

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

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

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

Actual expenses/actual returns

This example is intended to provide information about your fund’s actual ongoing operating expenses, and is based on your fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2007, with the same investment held until October 31, 2007.

	Account value	Ending value	Expenses paid during
	on 5-1-07	on 10-31-07	period ended 10-31-071
Class A	$1,000.00	$1,752.30	$11.83
Class B	1,000.00	1,745.90	16.61
Class C	1,000.00	1,745.90	16.61
Class I	1,000.00	1,756.60	8.83
Class NAV	1,000.00	1,757.30	6.59

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2007, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Greater China Opportunities Fund

8

Hypothetical example for comparison purposes

This table allows you to compare your fund’s ongoing operating expenses with those of any other fund. It provides an example of the Fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not your fund’s actual return). It assumes an account value of $1,000.00 on May 1, 2007, with the same investment held until October 31, 2007. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

	Account value	Ending value	Expenses paid during
	on 5-1-07	on 10-31-07	period ended 10-31-071
Class A	$1,000.00	$1,016.60	$8.67
Class B	1,000.00	1,013.10	12.18
Class C	1,000.00	1,013.10	12.18
Class I	1,000.00	1,018.80	6.47
Class NAV	1,000.00	1,020.42	4.83

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

¹ Expenses are equal to the Fund’s annualized expense ratio of 1.70%, 2.40%, 2.40%, 1.27% and 0.95% for Class A, Class B, Class C, Class I and Class NAV, respectively, multiplied by the average account value over the period, multiplied by number of days in most recent fiscal half-year/365 or 366 (to reflect the one-half year period).

Greater China Opportunities Fund

9

Fund’s investments

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

Securities owned by the Fund on 10-31-07

This schedule consists of one main category: common stocks. Common stocks are further
broken down by industry group.

Issuer	Shares	Value
Common stocks 95.98%		$388,445,498
(Cost $213,345,972)
Airlines 0.99%		4,023,146
China Eastern Airlines Corp. Ltd. (China) (F)(I)	2,710,000	2,949,423
China Southern Airlines Co. Ltd. (China) (F)(I)	770,000	1,073,723
Aluminum 1.37%		5,555,177
Aluminum Corp. of China Ltd. (China) (F)	1,948,000	5,555,177
Automobile Manufacturers 1.12%		4,551,248
Denway Motors Ltd. (Hong Kong) (F)	6,450,000	4,551,248
Broadcasting & Cable TV 0.27%		1,076,194
Phoenix Satellite Television Holdings Ltd. (Hong Kong) (F)	4,466,000	1,076,194
Coal & Consumable Fuels 2.90%		11,740,904
China Shenhua Energy Co. Ltd. (China) (F)	1,182,500	7,619,921
Yanzhou Coal Mining Co. Ltd. (China) (F)	1,912,000	4,120,983
Commodity Chemicals 0.51%		2,067,948
Sinopec Shanghai Petrochemical Co. Ltd. (China) (F)(W)	2,530,000	2,067,948
Computer Storage & Peripherals 0.22%		879,400
TPV Technology Ltd. (Hong Kong) (F)	1,306,000	879,400
Construction & Engineering 4.44%		17,975,733
China Communications Constructions Ltd. (China) (F)	2,239,000	7,103,866
COSCO International Holdings Ltd. (Hong Kong) (F)	4,422,000	6,812,030
Shui On Construction and Material Ltd. (Hong Kong) (F)	1,040,000	4,059,837
Construction & Farm Machinery & Heavy Trucks 0.92%		3,706,754
China Infrastructure Machinery Holdings, Ltd. (China) (F)	950,000	2,110,485
Weichai Power Co. Ltd. (China) (F)(I)	155,000	1,596,269
Distributors 1.38%		5,579,092
China Resources Enterprise Ltd. (Hong Kong) (F)	1,272,000	5,579,092
Diversified Banks 13.67%		55,329,444
Bank of China Ltd. (China) (F)	9,333,000	6,152,994
Bank of East Asia Ltd. (Hong Kong) (F)	811,017	5,517,777
China Construction Bank (China) (F)	17,205,000	19,558,372
China Merchants Bank Co. Ltd. (China) (F)	386,000	1,990,183
CITIC International Financial Holdings Ltd. (Hong Kong) (F)	775,000	666,788

See notes to financial statements

Greater China Opportunities Fund

10

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

Issuer	Shares	Value
Diversified Banks (continued)
HSBC Holdings Plc (United Kingdom) (F)	233,200	$4,596,331
Industrial & Commercial Bank of China (China) (F)	17,640,000	16,846,999
Diversified Metals & Mining 0.67%		2,726,811
Jiangxi Copper Co. Ltd. (China) (F)	771,000	2,726,811
Diversified REITs 0.76%		3,061,678
GZI Real Estate Investment Trust (Hong Kong) (F)	7,561,000	3,061,678
Electronic Equipment Manufacturers 1.52%		6,174,619
Au Optronics Corp. ADR (Taiwan) (F)	52,525	1,141,368
Chi Mei Optoelectronice Corp. (Taiwan) (F)	2,366,400	3,427,417
Kingboard Chemical Holdings Ltd. (Hong Kong) (F)	244,500	1,605,834
Forest Products 0.59%		2,404,094
Sino-Forest Corp. (Canada) (F)(I)	90,900	2,404,094
Gas Utilities 0.86%		3,477,937
Xinao Gas Holdings Ltd. (China) (F)	1,626,000	3,094,631
Zhengzhou Gas Co. Ltd. (China) (F)	1,900,000	383,306
Gold 0.68%		2,751,488
Zijin Mining Group Co. Ltd. (China) (F)	1,576,000	2,751,488
Heavy Electrical Equipment 1.78%		7,193,565
Harbin Power Equipment Co. Ltd. (China) (F)	1,636,000	5,354,599
Shanghai Electric Group Co. Ltd. (China) (F)	1,852,000	1,838,966
Highways & Railtracks 1.66%		6,707,256
Road King Infrastructure Ltd. (Hong Kong) (F)	2,675,000	5,410,508
Zhejiang Expressway Co. Ltd. (China) (F)	898,000	1,296,748
Hotels, Resorts & Cruise Lines 0.31%		1,238,801
China Travel International Investment Hong Kong Ltd. (Hong Kong) (F)	1,542,000	1,238,801
Hypermarkets & Super Centers 0.66%		2,654,990
Lianhua Supermarket Holdings Ltd. (China) (F)	1,693,000	2,654,990
Independent Power Producers & Energy Traders 2.11%		8,537,882
China Power International Development Ltd. (Hong Kong) (F)	5,339,000	2,859,581
China Resources Power Holdings Co. Ltd. (Hong Kong) (F)	1,518,000	5,678,301
Industrial Conglomerates 3.15%		12,766,926
Beijing Enterprises Holdings Ltd. (Hong Kong) (F)	424,000	2,637,189
Citic Pacific Ltd. (Hong Kong) (F)	812,000	5,120,008
Hutchison Whampoa Ltd. (Hong Kong) (F)	256,000	3,217,346
Shanghai Industrial Holdings Ltd. (Hong Kong) (F)	306,000	1,792,383
Industrial Machinery 1.74%		7,038,995
Enric Energy Equipment Holdings, Ltd. (Hong Kong) (F)(I)	2,244,000	3,149,818
EVA Precision Industrial Holdings, Ltd. (Hong Kong) (F)	3,294,000	1,243,718
Shanghai Prime Machinery Co. (China) (F)	5,620,000	2,645,459
Integrated Oil & Gas 9.70%		39,258,980
China Petroleum and Chemical Corp. (Sinopec) (China) (F)(W)	8,968,000	14,278,158
PetroChina Co. Ltd. (China) (F)	9,676,000	24,980,822

See notes to financial statements

Greater China Opportunities Fund

11

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

Issuer	Shares	Value
Integrated Telecommunication Services 2.57%		$10,385,048
China Netcom Group Corp. (Hong Kong) Ltd. (Hong Kong) (F)	1,020,000	3,134,616
China Telecom Corp. Ltd. (China) (F)	8,386,000	7,250,432
Investment Banking & Brokerage 1.12%		4,535,888
Goldbond Group Holdings Ltd. (Hong Kong) (F)(I)	17,610,000	1,599,691
Meadville Holdings Ltd. (Hong Kong) (F)	11,888,000	2,936,197
Leisure Products 0.56%		2,277,276
Li Ning Co. Ltd. (Hong Kong) (F)	606,000	2,277,276
Life & Health Insurance 6.95%		28,110,082
China Life Insurance Co. Ltd. (China) (F)	3,530,000	23,561,080
Ping An Insurance (Group) Co. of China Ltd. (China) (F)	325,000	4,549,002
Marine 1.50%		6,089,260
China Shipping Container Lines Co. Ltd. (China) (F)	619,000	821,000
Cosco Corp. (Singapore) Ltd. (Singapore) (F)	460,000	2,494,803
Pacific Basin Shipping Ltd. (Hong Kong) (F)	1,238,000	2,773,457
Marine Ports & Services 1.62%		6,536,861
China Merchants Holdings International Co. Ltd. (Hong Kong) (F)	654,670	4,617,384
Cosco Pacific Ltd. (Hong Kong) (F)	616,000	1,919,477
Oil & Gas Exploration & Production 3.05%		12,347,719
CNOOC Ltd. (Hong Kong) (F)	5,714,000	12,347,719
Other Diversified Financial Services 0.90%		3,638,320
China Everbright Ltd. (Hong Kong) (F)(I)	809,000	3,638,320
Packaged Foods & Meats 1.65%		6,694,195
China Mengniu Dairy Co. Ltd. (Hong Kong) (F)	620,000	2,633,656
China Yurun Food Group Ltd. (Hong Kong) (F)	2,312,000	4,060,539
Personal Products 0.33%		1,353,228
Hengan International Group Co. Ltd. (Hong Kong) (F)	347,000	1,353,228
Property & Casualty Insurance 0.79%		3,189,503
PICC Property and Casualty Co. Ltd. (China) (F)	1,526,000	3,189,503
Railroads 0.40%		1,620,132
Guangshen Railway Co. Ltd. (China) (F)(W)	1,898,000	1,620,132
Real Estate Management & Development 6.56%		26,529,211
Cheung Kong Holdings Ltd. (Hong Kong) (F)	178,000	3,491,298
China Overseas Land & Investment Ltd. (Hong Kong) (F)	2,696,000	6,452,696
China Resources Land Ltd. (Hong Kong) (F)	1,934,000	4,892,723
Guangzhou Investment Co. Ltd. (Hong Kong) (F)	6,616,000	2,818,403
Shenzhen Investment Ltd. (Hong Kong) (F)	1,832,000	1,770,950
Shimao Property Holdings Ltd. (China) (F)	775,000	2,774,384
Shui On Land Ltd. (China) (F)	3,110,000	4,328,757
Semiconductors 0.20%		805,477
Advanced Semiconductor Manufacturing Corp. (China) (F)(I)	13,160,000	805,477
Steel 0.73%		2,958,609
Maanshan Iron & Steel Co. Ltd. (China) (F)	3,320,000	2,958,609

See notes to financial statements

Greater China Opportunities Fund

12

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

Issuer	Shares	Value
Technology Distributors 1.13%		$4,585,161
Digital China Holdings Ltd. (Hong Kong) (F)	6,995,800	4,585,161
Wireless Telecommunication Services 11.94%		48,310,466
China Mobile (Hong Kong) Ltd. (Hong Kong) (F)	2,337,000	48,310,466
Total investments (Cost $213,345,972) 95.98%		$388,445,498
Other assets and liabilities, net 4.02%		16,262,888
Total net assets 100.00%		$404,708,386

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

ADR American Depositary Receipt

(F) Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer.

 (I) Non-income-producing security.

(W) Fund owns 5% or more of the outstanding voting securities of the issuer.

See notes to financial statements

Greater China Opportunities Fund

13

Financial statements

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

Statement of assets and liabilities 10-31-07

This Statement of Assets and Liabilities is the Fund’s balance sheet. It shows the value
of what the Fund owns, is due and owes. You’ll also find the net asset value and the
maximum offering price per share.

Assets
Investments in unaffiliated issuers, at value (cost $203,451,272)	$370,479,260
Investments in affiliated issuers, at value (cost $9,894,700)	17,966,238
Total investments, at value (cost $213,345,972)	388,445,498
Cash	8,780,957
Foreign currency at value (cost $2,473,285)	2,487,269
Receivable for investments sold	3,095,016
Receivable for shares sold	3,714,514
Dividends receivable	62,937
Other assets	2,200
Total assets	406,588,391
Liabilities
Payable for investments purchased	307,527
Payable for shares repurchased	1,044,895
Payable to affiliates
Management fees	329,465
Distribution and service fees	26,418
Other	44,869
Other payables and accrued expenses	126,831
Total liabilities	1,880,005
Net assets
Capital paid-in	206,864,377
Accumulated net realized gain on investments and foreign currency transactions	22,261,019
Net unrealized appreciation of investments and translation of assets and
liabilities in foreign currencies	175,113,610
Undistributed net investment income	469,380
Net assets	$404,708,386
Net asset value per share
Based on net asset values and shares outstanding — the Fund has an
unlimited number of shares authorized with no par value
Class A ($283,307,581 ÷ 8,705,850 shares)	$32.54
Class B ($55,326,795 ÷ 1,720,100 shares)1	$32.16
Class C ($58,919,566 ÷ 1,832,007 shares)1	$32.16
Class I ($6,140,538 ÷ 187,852 shares)	$32.69
Class NAV ($1,013,906 ÷ 30,990 shares)	$32.72
Maximum offering price per share
Class A2 ($32.54 ÷ 95%)	$34.25

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

² On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

See notes to financial statements

Greater China Opportunities Fund

14

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

Statement of operations For the year ended 10-31-07

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

Investment income
Dividends from unaffiliated issuers (net of foreign withholding taxes of $2,070)	$4,352,765
Dividends from affiliated issuers	214,142
Interest	32,241
Total investment income	4,599,148
Expenses
Investment management fees (Note 2)	2,261,370
Distribution and service fees (Note 2)	1,096,978
Class A, B and C transfer agent fees (Note 2)	446,045
Class I transfer agent fees (Note 2)	2,427
Accounting and legal services fees (Note 2)	25,503
Custodian fees	156,734
Blue sky fees	95,645
Printing fees	54,580
Professional fees	28,212
Trustees’ fees	8,156
Miscellaneous	25,336
Total expenses	4,200,986
Net investment income	398,162
Realized and unrealized gain
Net realized gain on
Investments in unaffiliated issuers	26,401,084
Investments in affiliated issuers	569,375
Foreign currency transactions	71,218
	27,041,677
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers	152,610,262
Investments in affiliated issuers	8,071,538
Translation of assets and liabilities in foreign currencies	15,790
	160,697,590
Net realized and unrealized gain	187,739,267
Increase in net assets from operations	$188,137,429

See notes to financial statements

Greater China Opportunities Fund

15

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

Statement of changes in net assets

These Statements of Changes in Net Assets show how the value of the Fund’s net assets
has changed during the last two periods. The difference reflects earnings less expenses,
any investment gains and losses, distributions, if any, paid to shareholders and the net of
Fund share transactions.

	Year	Year
	ended	ended
	10-31-06	10-31-07
Increase in net assets
From operations
Net investment income	$521,107	$398,162
Net realized gain	2,822,442	27,041,677
Change in net unrealized appreciation (depreciation)	14,784,854	160,697,590
Increase in net assets resulting from operations	18,128,403	188,137,429
Distributions to shareholders
From net investment income
Class A	(34,481)	(446,999)
Class B	—	(7,633)
Class C	—	(6,002)
Class I	(4,277)	(38,951)
From net realized gain
Class A	(44,190)	(2,043,716)
Class B	(5,067)	(419,850)
Class C	(4,308)	(330,123)
Class I	(351)	(111,132)
	(92,674)	(3,404,406)
From Fund share transactions (Note 4)	78,905,420	107,935,620
Total increase	96,941,149	292,668,643
Net assets
Beginning of year	15,098,594	112,039,743
End of year1	$112,039,743	$404,708,386

¹ Includes undistributed net investment income of $499,607 and $469,380, respectively.

See notes to financial statements

Greater China Opportunities Fund

16

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

Financial highlights

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

CLASS A SHARES
Period ended	10-31-051	10-31-06	10-31-07
Per share operating performance
Net asset value, beginning of period	$10.00	$10.24	$15.78
Net investment income2	0.03	0.16	0.07
Net realized and unrealized
gain on investments	0.21	5.43	17.14
Total from investment operations	0.24	5.59	17.21
Less distributions
From net investment income	—	(0.01)	(0.08)
From net realized gain	—	(0.04)	(0.37)
	—	(0.05)	(0.45)
Net asset value, end of period	$10.24	$15.78	$32.54
Total return3 (%)	2.404,5	54.744	111.87
Ratios and supplemental data
Net assets, end of period
(in millions)	$12	$79	$283
Ratio of net expenses to average
net assets (%)	1.936	1.89	1.68
Ratio of gross expenses to average
net assets (%)	4.446,7	1.927	1.68
Ratio of net investment income
to average net assets	0.686	1.14	0.34
Portfolio turnover (%)	285	57	85

¹ Beginning of operations on 6-9-05 to 10-31-05.

² Based on the average of the shares outstanding.

³ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁴ Total return would have been lower had certain expenses not been reduced during the periods shown.

⁵ Not annualized.

⁶ Annualized.

⁷ Does not take into consideration expense reductions during the periods shown.

See notes to financial statements

Greater China Opportunities Fund

17

Financial highlights

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

CLASS B SHARES
Period ended	10-31-051	10-31-06	10-31-07
Per share operating performance
Net asset value, beginning of period	$10.00	$10.21	$15.63
Net investment income (loss)2	0.02	0.09	(0.07)
Net realized and unrealized
gain on investments	0.19	5.37	16.98
Total from investment operations	0.21	5.46	16.91
Less distributions
From net investment income	—	—	(0.01)
From net realized gain	—	(0.04)	(0.37)
	—	(0.04)	(0.38)
Net asset value, end of period	$10.21	$15.63	$32.16
Total return3 (%)	2.104,5	53.594	110.50
Ratios and supplemental data
Net assets, end of period
(in millions)	$1	$16	$55
Ratio of net expenses to average
net assets (%)	2.636	2.59	2.38
Ratio of gross expenses to average
net assets (%)	5.146,7	2.627	2.38
Ratio of net investment income
(loss) to average net assets	0.436	0.63	(0.32)
Portfolio turnover (%)	285	57	85

¹ Beginning of operations on 6-9-05 to 10-31-05.

² Based on the average of the shares outstanding.

³ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁴ Total return would have been lower had certain expenses not been reduced during the periods shown.

⁵ Not annualized.

⁶ Annualized.

⁷ Does not take into consideration expense reductions during the periods shown.

See notes to financial statements

Greater China Opportunities Fund

18

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

Financial highlights

CLASS C SHARES
Period ended	10-31-051	10-31-06	10-31-07
Per share operating performance
Net asset value, beginning of period	$10.00	$10.21	$15.63
Net investment income (loss)2	0.03	0.08	(0.05)
Net realized and unrealized
gain on investments	0.18	5.38	16.96
Total from investment operations	0.21	5.46	16.91
Less distributions
From net investment income	—	—	(0.01)
From net realized gain	—	(0.04)	(0.37)
	—	(0.04)	(0.38)
Net asset value, end of period	$10.21	$15.63	$32.16
Total return3 (%)	2.104,5	53.594	110.51
Ratios and supplemental data
Net assets, end of period
(in millions)	$1	$13	$59
Ratio of net expenses to average
net assets (%)	2.626	2.59	2.38
Ratio of gross expenses to average
net assets (%)	5.136,7	2.627	2.38
Ratio of net investment income
(loss) to average net assets	0.616	0.55	(0.25)
Portfolio turnover (%)	285	57	85

¹ Beginning of operations on 6-9-05 to 10-31-05.

² Based on the average of the shares outstanding.

³ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁴ Total return would have been lower had certain expenses not been reduced during the periods shown.

⁵ Not annualized.

⁶ Annualized.

⁷ Does not take into consideration expense reductions during the periods shown.

See notes to financial statements

Greater China Opportunities Fund

19

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

Financial highlights

CLASS I SHARES
Period ended	10-31-051	10-31-06	10-31-07
Per share operating performance
Net asset value, beginning of period	$10.00	$10.26	$15.82
Net investment income2	0.03	0.24	0.09
Net realized and unrealized
gain on investments	0.23	5.42	17.28
Total from investment operations	0.26	5.66	17.37
Less distributions
From net investment income	—	(0.06)	(0.13)
From net realized gain	—	(0.04)	(0.37)
	—	(0.10)	(0.50)
Net asset value, end of period	$10.26	$15.82	$32.69
Total return3 (%)	2.604,5	55.434	112.93
Ratios and supplemental data
Net assets, end of period
(in millions)	—8	$4	$6
Ratio of net expenses to average
net assets (%)	1.456	1.46	1.22
Ratio of gross expenses to average
net assets (%)	3.966,7	1.497	1.22
Ratio of net investment income
to average net assets	0.766	1.70	0.44
Portfolio turnover (%)	285	57	85

¹ Beginning of operations on 6-9-05 to 10-31-05.

² Based on the average of the shares outstanding.

³ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁴ Total return would have been lower had certain expenses not been reduced during the periods shown.

⁵ Not annualized.

⁶ Annualized.

⁷ Does not take into consideration expense reductions during the periods shown.

⁸ Less than $500,000.

See notes to financial statements

Greater China Opportunities Fund

20

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

Financial highlights

CLASS NAV SHARES
Period ended	10-31-071
Per share operating performance
Net asset value, beginning of period	$18.15
Net investment income2	0.35
Net realized and unrealized
gain on investments	14.22
Total from investment operations	14.57
Net asset value, end of period	$32.72
Total return3 (%)	80.284
Ratios and supplemental data
Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets (%)	1.125
Ratio of net investment income
to average net assets	1.565
Portfolio turnover (%)	85

¹ Beginning of operations from 12-28-06 to 10-31-07.

² Based on the average of the shares outstanding.

³ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁴ Not annualized.

⁵ Annualized.

See notes to financial statements

Greater China Opportunities Fund

21

Notes to financial statements

Note 1
Accounting policies

JohnHancockGreaterChinaOpportunitiesFund (theFund)is anon-diversifiedseriesofJohnHancockInvestmentTrustIII(theTrust),an open-endmanagementinvestmentcompanyregisteredundertheInvestmentCompa nyActof1940,as amended(the 1940Act).Theinvestmentobjectiveof theFundis toachievelong-termcapitalappreciation.

TheTrusteeshaveauthorizedthe issuanceof multipleclassesof sharesof theFund,designatedasClass A,Class B,Class C,Class IandClass NAVshares.Thesharesof eachclassrepresentan interestin thesame portfolioof investmentsof theFundand haveequalrightsas tovoting,redemptions,dividendsand liquidation,exceptthatcertainexpenses,subjectto theapprovalof theTrustees,may beapplieddifferentlyto eachclassof sharesin accordancewithcurrentregulationsof theSecuritiesandExchangeCommission(SEC)and theInternal RevenueService.Shareholdersof aclassthatbearsdistributionand serviceexpensesunderthe termsof adistributionplanhaveexclusivevotingrightsto thatdistributionplan.Class BshareswillconverttoClass Ashareseightyearsafterpurchase.

Significant accounting policies

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

Security valuation

Thenet assetvalueofClass A,Class B, Class C,Class IandClass NAV sharesof theFundis determineddailyas ofthe closeof theNewYorkStockExchange(NYSE),normallyat 4:00p.m.,EasternTime.Short-termdebtinvestmentsthathavea remainingmaturityof60daysor lessare valuedat amortizedcost,and thereafterassumea constantamortizationto maturityof anydiscountor premium,whichapproximatesmarketvalue.Investments in John Hancock Cash Investment Trust (JHCIT), an affiliate of John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (MFC), are valued at their net asset value each business day.Allothersecuritiesheldby theFundare valuedat thelastsalepriceor officialclosingprice(closingbid priceor lastevaluatedquoteif nosalehas occurred)as ofthe closeof businesson theprincipalsecuritiesexchange(domesticor foreign)on whichtheytrade or,lackingany sales,at theclosingbid price.Securitiestradedonlyin theover-the-countermarketare valued at thelastbid pricequotedby brokersmakingmarketsin thesecuritiesat thecloseof trading.Securitiesfor whichthereare nosuchquotations,principallydebtsecurities,are valuedbasedon thevaluationprovided< /I>by anindependentpricingservice,whichutilizesbothdealer-suppliedand electronicdataprocessingtechniques,whichtakeintoaccountfactorssuchas institutional-sizetradingin similargroupsof securities,yield,quality,couponrate,maturity,typeof issue,tradingcharacteristicsand othermarketdata.

Otherassetsand securitiesfor whichno suchquotationsare readilyavailableare valuedat fairvalueas determinedin goodfaithunderconsistentlyappliedproceduresestablishedby andunderthe generalsupervisionof theBoardofTrustees.Generally,tradingin non-U.S.securitiesis substantiallycompletedeachday atvarioustimespriorto thecloseof tradingon theNYSE.Thevaluesof suchsecuritiesusedin computingthe netassetvalueof theFund’ssharesare generallydeterminedas ofsuchtimes.Occasionally,significanteventsthataffectthe valuesof suchsecuritiesmay occurbetweenthe timesat whichsuchvaluesare generallydeterminedand thecloseof the

Greater China Opportunities Fund

22

NYSE.Uponsuchan occurrence,thesesecuritieswillbe valuedat fairvalueas determinedin goodfaithunderconsistentlyappliedproceduresestablishedby andunderthe generalsupervisionof theBoardofTrustees.

Joint repurchase agreement

Pursuantto anexemptiveorderissuedby theSEC,theFund,alongwithotherregistered investmentcompanieshavinga managementcontractwiththe Adviser may participatein ajointrepurchaseagreementtransaction.Aggregatecashbalancesare investedin oneor morelargerepurchaseagreements,whoseunderlyingsecuritiesare obligationsof theU.S.governmentand/or itsagencies.TheFund’scustodianbankreceivesdeliveryof theunderlyingsecuritiesfor thejointaccounton theFund’sbehalf.TheAdviseris responsiblefor ensuringthatthe agreementis fullycollatera lizedat alltimes.

Foreign currency translations

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

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

Investment transactions

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

Class allocations

Income,commonexpensesand realizedand unrealizedgains(losses)are determinedat thefundleveland allocateddailyto eachclassof sharesbasedon theappropriatenet assetvalueof therespectiveclasses.Distributionand service< FONT face=serif size=2>fees,if any,and transferagentfeesfor Class A, Class B, Class C and Class Isharesare calculateddailyat theclasslevelbasedon theappropriatenet assetvalueof eachclassand thespecificexpenserate(s)applicableto eachclass.

Expenses

Themajorityof expensesare directlyidentifiableto anindividualfund.Expensesthatare notreadilyidentifiableto aspecificfundare allocatedin sucha manneras deemedequitable,takingintoconsideration,amongotherthings,the natureand typeof expenseand therelativesizeof thefunds.

Bank borrowings

TheFundis permittedto havebankborrowingsfor temporaryor emergencypurposes,includingthe meetingof redemptionrequeststhatotherwisemightrequirethe untimelydispositionof securities.TheFundhas enteredintoa lineof creditagreementwithTheBankofNewYorkMellon(BNYM),theSwingLineLenderandAdministrativeAgent.ThisagreementenablestheFundto participate,withotherfundsmanagedby theAdviser,in anunsecuredlineof creditwithBNYM,whichpermitsborrowingsof upto$100million,collectively.Interestis chargedto eachfundbasedon itsborrowing.Inaddition,a commitmentfee ischargedto eachfundbasedon theaveragedailyunusedportionof thelineof credit,and isallocatedamongthe participatingfunds.TheFundhad noborrowingactivityunderthe lineof creditduringthe year endedOctober 31,2007.

Greater China Opportunities Fund

23

Securities lending

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

The Fund may lend portfolio securities from time to time in order to earn additional income. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the issuer of securities and to participate in any changes in their value. On the settlement date of the loan, the Fund receives collateral against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. Any cash collateral received is invested in the JHCIT. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the colla teral. The Fund receives compensation for lending their securities either in the form of fees, guarantees, and/or by retaining a portion of interest on the investment of any cash received as collateral.

Federal income taxes

TheFundqualifiesas a“regulatedinvestmentcompany”by complyingwiththe applicableprovisionsof theInternalRevenueCodeand willnot besubjectto federalincometax ontaxableincomethatis distributedto shareholders.Therefore,no federalincometax provisionis required.

New accounting pronouncements

InJune 2006,Financial Accounting Standards Board (FASB)InterpretationNo.48, Accounting for Uncertainty in Income Taxes,an interpretationofFASBStatement 109(FIN48),was issuedand iseffectivefor fiscalyearsbeginningafterDecember 15,2006,and isto beapplied< I>to allopentax yearsas ofthe effectivedate.OnDecember 22,2006,theSECdelayedthe implementationofFIN48for regulatedinvestmentcompaniesfor anadditionalsix months.FIN48prescribesa minimumthresholdfor financialstatementrecognitionof thebenefitof atax positiontakenor expectedto betakenin atax return,and requirescertainexpandeddisclosures.Managementhas concludedthatthe adoptionofFIN48willnot resultin amaterialimpacton theFund’snet assets,resultsof operationsand financialstatementdisclosures.

In September 2006, FASB Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishing a framework for measuring fair value and expands disclosure about fair value measurements. Management is currently evaluating the application of FAS 157 to the Fund and its impact, if any, resulting from the adoption of FAS 157 on the Fund’s financial statements.

Dividends, interest and distributions

Dividendincomeon investmentsecuritiesis recordedon theex-dividenddateor,in thecaseof someforeigndividends,whentheFundbecomesawareof thedividendsfromcashcollections.Interestincomeon investm entsecuritiesis recordedon theaccrualbasis.Discounts/premiumsareaccreted/amortizedfor financialreportingpurposes.Foreignincomemay besubjectto foreignwithholdingtaxes,whichare accruedas applicable.

TheFundrecordsdistributionsto shareholdersfromnet investmentincomeand netrealizedgains,if any,on theex-dividenddate.Duringthe yearendedOctober 31,2006,the taxcharacterof distributionspaidwas asfollows:ordinaryincome$92,674.Duringthe yearendedOctober 31,2007,the taxcharacterof distributionspaidwas asf ollows:ordinaryincome$3,404,406.Distributionspaidby the

Greater China Opportunities Fund

24

Fundwithrespectto eachclassof sharesare calculatedin thesamemanner,at thesametimeand arein thesameamount,exceptfor theeffectof expensesthatmay beapplieddifferentlyto each class.

AsofOctober 31,2007,the componentsof distributableearningson atax basisincluded$23,088,186of undistributedordinaryincome and $86,034 of undistributed long-term gain.

Suchdistributionsand distributableearnings,on atax basis,are determinedin conformitywithincometax regulations,whichmay differfromaccountingprinciplesgenerallyacceptedin theUnitedStatesofAmerica.Distributionsin excessof tax < /FONT>basisearningsand profits,if any,are reportedin theFund’sfinancialstatementsas areturnof capital.

Note 2
Management fee and transactions with
affiliates and others

The Fund has an investment management contract with the Adviser. Under the investment management contract, the Fund pays a daily management fee to the Adviser equivalent, at an annual rate of 1.00% of the Fund’s average daily net asset value. The Fund has a subadvisory agreement with MFC Global Investment Management (U.S.A.), LLC, an affiliate of John Hancock Financial Services, Inc. The Fund is not responsible for payment of the subadvisory fees.

The Adviser has agreed to limit the Fund’s total expenses, excluding distribution and service fees and transfer agent fees to 1.40% on an annual basis of the Fund’s average daily net asset value until February 29, 2008. There were no management fee reductions related to this limitation for the year ended October 31, 2007.

TheFundhas aDistributionAgreementwithJohnHancockFunds,LLC(JHFunds),a wholly ownedsubsidiaryof theAdviser.TheFundhas adoptedDistributionPlanswithrespecttoClass A,Class BandClass C,pursuanttoRule 12b-1underthe 1940Act,to reimburseJHFundsfor theservicesit providesas distributorof sharesof theFund.Accordingly,theFundmakesmonthlypaymentstoJHFundsat anannualratenot toexceed0.30%,1.00%and1.00%averagedailynet assetvalue< /I>ofClass A,Class BandClass C,respectively.Amaximumof0.25%of suchpaymentsmay beservicefees,as definedby theConductRulesof theFinancial Industry Regulatory Authority (formerly the NationalAssociationofSecuritiesDealers.)Under< FONT face=serif size=2>theConductRules,curtailmentof aportionof theFund’s12b-1paymentscouldoccurundercertain circumstances.

Expenses under the agreements described above for the year ended October 31, 2007 were as follows:

	Transfer agent	Distribution and
Share class	fees	service fees
Class A	$79,209	$475,252
Class B	15,644	312,886
Class C	15,442	308,840
Class I	295	—
Total	$110,590	$1,096,978

Additionally, there are out-of-pocket expenses included in transfer agent fees.

Class Asharesare assessedup-frontsalescharges.Duringthe yearendedOctober 31,2007,JHFundsreceivednet up-frontsaleschargesof$2,484,773withregardto salesofClass Ashares.Ofthisamount,$395,821was retainedand usedfor printingprospectuses,advertising,salesliteratureand otherpurposes,$2,067,978was paidas salescommissionsto unrelatedbroker-dealersand$20,974was paidas salescommissionsto salespersonnelofSignator Investors,Inc.(SignatorInvestors),a relatedbroker-dealer.TheAdviser’sindirectparent,JohnHancockLifeInsuranceCompany(JHLICO),is theindirectsoleshareholderofSignatorInvestors.

Class Bsharesthatare redeemedwithinsix yearsof purchaseare subjectto acontingentdeferredsalescharge (CDSC)at decliningrates,beginningat 5.00%of thelesserof thecurrentmarketvalueat thetimeof redemptionor theoriginalpurchasecostof thesharesbeingredeemed.Class Csharesthatare redeemedwithinone yearof purchaseare subjectto aCDSCat arateof1.00%of thelesserof thecurrentmarketvalueat thetimeof redemptionor theoriginalpurchasecostof thesharesbeingredeemed.Proceed sfromtheCDSCsare paidtoJHFundsand areusedin wholeor inpartto defray

Greater China Opportunities Fund

25

its expensesfor providingdistribution-relatedservicesto theFundin connectionwiththe saleofClass BandClass Cshares.Duringthe yearendedOctober 31,2007,CDSCsreceivedbyJHFundsamountedto$87,005 forClass Bsharesand$37,019forClass Cshares.

TheFundhas atransferagentagreementwithJohnHancockSignatureServices,Inc.(SignatureServices),an indirectsubsidiaryofJHLICO.The Fund pays a monthly fee which is based on an annual rate of $15.00 for each Class A shareholder account, $17.50 for each Class B shareholder account, $16.50 for each Class C shareholder account and $15.00 for each Class I shareholder account.For Class A, Class B and Class C shares, the Fundpaysa monthlytransferagentfee atan annualrateof0.05%of eachclass’saveragedailynet assetvalue,plusa feebasedon thenumberof shareholderaccountsand reimbursementfor certainout-of-pocketexpenses,aggregatedand allocatedto eachclasson thebasisof itsrelativenet assetvalue.ForClass Ishares,theFundpaysa monthly transferagentfee ata totalannualrateof0.05%ofClass Iaveragedailynet assetvalue.EffectiveJune 1,2007,forClass Ishares,theFundpaysa monthlytransferagentfee at a totalannualrateof0.04%of theClass Iaveragedailynet assetvalue.SignatureServiceshad agreedto limitClass A,Class B andClass Ctransferagentfee to0.40%of eachrespectiveclass’saveragedailynet assetvalueuntilFebruary 29,2008.Therewereno transferagentfee reductionsduringthe yearend edOctober 31,2007.SignatureServicesreservesthe rightto terminatethis limitationin thefuture.

The Fund has an agreement with the Adviser and affiliates to perform necessary tax, accounting, compliance and legal services for the Fund. The compensation for the year amounted to $25,503 with an effective rate of 0.01% of the Fund’s average daily net asset value.

TheAdviserand othersubsidiariesofJHLICOowned5,510Class NAVsharesof beneficialinterest of theFundonOctober 31,2007.

Mr.JamesR.BoyleisChairmanof theAdviser,as wellas affiliatedTrusteeof theFund,and iscompensatedby theAdviserand/orits affiliates.Thecompensationof unaffiliatedTrusteesis borneby theFund.The unaffiliatedTrusteesmay electto defer,for taxpurposes,theirreceiptof thiscompensationundertheJohnHancockGroupofFundsDeferredCompensationPlan.TheFundmakesinvestmentsintootherJohnHancockfunds,as applicable,to coverits liabilityfor thedeferredcompensation.Investmentsto covertheFund’sdeferredcompensationliabilityare recordedon theFund’sbooksas anotherasset.Thedeferredcompensationliabilityand therelatedotherasset are alwaysequaland aremarkedto marketon aperiodicbasisto reflectany incomeearnedby theinvestments,as wellas anyunrealizedgainsor losses.TheDeferredCompensationPlaninvestmentshad noimpacton theoperationsof theFund.

Note 3
Guarantees and indemnifications

UndertheFund’sorganizationaldocuments,itsOfficersandTrusteesare indemnifiedagainstcertainliability arisingout ofthe performanceof theirdutiesto theFund.Additionally,in thenormalcourseof business,theFundentersintocontractswithserviceprovidersthatcontaingeneralindemnificationclauses.TheFund’s< /FONT>maximumexposureunderthesearrangementsis unknown,as thiswouldinvolvefutureclaimsthatmay bemadeagainsttheFundthathavenot yetoccurred.However,basedon experience,theFundbelievesthe riskof lossto beremote.

Greater China Opportunities Fund

26

Note 4
Fund share transactions

Thislistingillustratesthe numberofFundsharessold,reinvestedand repurchasedduringthe yearsendedOctober 31,2006and October 31,2007,alongwiththe correspondingdollarvalue.

	Year ended 10-31-06		Year ended 10-31-07
	Shares	Amount	Shares	Amount
Class A shares
Sold	4,403,727	$61,366,745	8,447,940	$169,306,235
Distributions reinvested	4,465	52,705	126,904	2,074,872
Repurchased	(612,866)	(8,460,937)	(4,879,757)	(96,220,516)
Net increase	3,795,326	$52,958,513	3,695,087	$75,160,591
Class B shares
Sold	1,005,055	$13,949,422	1,301,863	$26,168,795
Distributions reinvested	424	4,524	23,890	388,693
Repurchased	(84,729)	(1,165,271)	(659,664)	(13,439,521)
Net increase	920,750	$12,788,675	666,089	$13,117,967
Class C shares
Sold	752,789	$10,545,210	1,673,930	$34,330,490
Distributions reinvested	284	3,039	18,411	299,354
Repurchased	(53,331)	(722,035)	(676,559)	(14,357,628)
Net increase	699,742	$9,826,214	1,015,782	$20,272,216
Class I shares
Sold	233,955	$3,432,104	476,048	$8,842,958
Distributions reinvested	274	3,562	8,254	134,958
Repurchased	(7,363)	(103,648)	(533,316)	(9,915,657)
Net increase (decrease)	226,866	$3,332,018	(49,014)	($937,741)
Class NAV shares1
Sold	—	—	52,804	$985,385
Repurchased	—	—	(21,814)	(662,798)
Net increase	—	—	30,990	$322,587
Net increase	5,642,684	$78,905,420	5,358,934	$107,935,620

¹Beginning of operations from 12-28-06 to 10-31-07.

Note 5
Investment transactions

Purchasesand proceedsfromsalesor maturitiesof securities,otherthanshort-termsecuritiesand obligationsof theU.S. government,duringthe yearendedOctober 31,2007,aggregated$286,239,193and$186,711,239,respectively.

Thecostof investmentsownedonOctober 31,2007,includingshort-terminvestments,for federalincometax purposeswas$213,789,793.Grossunrealizedappreciationand depreciationof investmentsaggregated$177,350,246and$2,694,541,respectively,resultingin netunrealizedappreciationof$174,655,705.Thedifferencebetweenbookbasisand taxbasisnet unrealizedappreciationof investmentsis attributableprimarilyto thetax deferralof losseson certainsalesof securities.

Note 6
Reclassification of accounts

Capital accounts within 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 will reverse in a subsequent period. During the year ended October 31, 2007, the

Greater China Opportunities Fund

27

Fund reclassified amounts to reflect a decrease in accumulated net realized gain on investments of $4,694,252, an increase in accumulated net investment income of $71,196 and an increase in capital paid-in of $4,623,056. These reclassifications are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America for foreign currency transactions, and treating a portion of the proceeds from redemptions as distribution for tax purposes. The calculation of net investment income (loss) per share in the Fund’s Financial Highlights excludes these adjustments.

Note 7
Transactions in securities of affiliated issuers

Affiliated issuers, as defined by the Investment Company Act of 1040, are those in which the Fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of the Fund’s transactions in the securities of these issuers during the year ended October 31, 2007, is set forth below.

	Beginning	Ending
	share	share	Realized	Dividend	Ending
Affiliate	amount	amount	gain (loss)	income	value
Sinopec Shanghai
Petrochemical Co. Ltd.
bought: 3,280,000
sold: 750,000	—	2,530,000	$138,887	$17,153	$2,067,948
China Petroleum and
Chemical Corp.
bought: 8,428,000
sold: 2,250,000	2,790,000	8,968,000	430,488	177,086	14,278,158
Guangshen Railway
Co., Ltd.
bought: none
sold: none	1,898,000	1,898,000	—	19,903	1,620,132
Total			$569,375	$214,142	$17,966,238

Greater China Opportunities Fund

28

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of the John Hancock Investment Trust III and Shareholders of
John Hancock Greater China Opportunities Fund,

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of John Hancock Greater China Opportunities Fund (the Fund) at October 31, 2007, and the results of its operations, the changes in its net assets, and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Th ose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
December 21, 2007

29

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Fund, if any, paid during its taxable year ended October 31, 2007.

The Fund has designated distributions to shareholders of $4,623,056 as a long-term capital gain dividend.

The Fund hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2007.

Shareholders will be mailed a 2007 U.S. Treasury Department Form 1099-DIV in January 2008. This will reflect the total of all distributions that are taxable for calendar year 2007.

30

Board Consideration of and
Continuation of Investment Advisory
Agreement and Subadvisory
Agreement: John Hancock Greater
China Opportunities Fund

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

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

In evaluating the Advisory Agreements, the Board, including the Contracts/Operations Committee and the Independent Trustees, reviewed a broad range of information requested for this purpose by the Independent Trustees, including: (i) the investment performance of the Fund relative to a category of relevant funds (the Category) and a peer group of comparable funds (the Peer Group) each selected by Morningstar, Inc. (Morningstar), an independent provider of investment company data, for a range of periods ended December 31, 2006, (ii) advisory and other fees incurred by, and the expense ratios of, the Fund relative to a Category and a Peer Group,

(iii) the advisory fees of comparable portfolios of other clients of the Adviser and the Subadviser, (iv) the Adviser’s financial results and condition, including its and certain of its affiliates’ profitability from services performed for the Fund, (v) breakpoints in the Fund’s and the Peer Group’s fees, and information about economies of scale, (vi) the Adviser’s and Subadviser’s record of compliance with applicable laws and regulations, with the Fund’s investment policies and restrictions, and with the applicable Code of Ethics, and the structure and responsibilities of the Adviser’s and Subadviser’s compliance department, (vii) the background and experience of senior management and investment professionals, and (viii) the nature, cost and character of advisory and non-investment management services provided by the Adviser and its affiliates and by the Subadviser.

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

Nature, extent and quality of services

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

31

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

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

Fund performance

The Board noted that the Fund had less than three full years of operational history, and considered the performance results for the Fund since its inception through December 31, 2006. The Board also considered these results in comparison to the performance of the Category, as well as the Fund’s Peer Group and benchmark index. Morningstar determined the Category and Peer Group for the Fund. The Board reviewed with a representative of Morningstar the methodology used by Morningstar to select the funds in the Category and the Peer Group.

The Board recognized the relatively short operational history of the Fund and viewed favorably that the Fund’s performance during the 1-year period under review was higher than the performance of the Peer Group median and appreciably higher than the performance of the Category median. The Board noted that the Fund’s performance was below the performance of its benchmark index, the MSCI China ID Index, as was the performance of the Peer Group and Category medians.

Investment advisory fee and subadvisory fee rates and expenses

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

The Board received and considered expense information regarding the Fund’s various components, including advisory fees, distribution and fees other than advisory and distribution fees, including transfer agent fees, custodian fees, and other miscellaneous fees (e.g., fees for accounting and legal services). The Board considered comparisons of these expenses to the Peer Group median. The Board also received and considered expense information regarding the Fund’s total operating expense ratio (Gross Expense Ratio) and total operating expense ratio after taking the fee waiver arrangement applicable to the Advisory Agreement Rate into account (Net Expense Ratio). The Board received and considered information comparing the Gross Expense Ratio and Net Expense Ratio of the Fund to that of the Peer Group and Category medians. The Board noted that the Fund’s Gross and Net Expense Ratios were lower than the median of its Category and Peer Group.

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

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

Profitability

The Board received and considered a detailed profitability analysis of the Adviser based on the Advisory Agreements, as well as on other relationships between the Fund and the Adviser and its affiliates, including the Subadviser. The Board also considered a comparison of the Adviser’s profitability to that of other similar investment advisers whose profitability information is publicly available. The Board concluded that, in light of the costs of

32

providing investment management and other services to the Fund, the profits and other ancillary benefits reported by the Adviser were not unreasonable.

Economies of scale

The Board received and considered general information regarding economies of scale with respect to the management of the Fund, including the Fund’s ability to appropriately benefit from economies of scale under the Fund’s fee structure. The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of the Adviser’s costs are not specific to individual Funds, but rather are incurred across a variety of products and services. The Board observed that the Advisory Agreement did not offer breakpoints and considered the Fund’s current asset level. The Board concluded that the fee structure was acceptable at this time and determined that it would continue to assess the reasonableness of the Fund’s fee structure as the Fund’s assets increase over time.

Information about services to other clients

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

Other benefits to the Adviser

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

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

Other factors and broader review

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

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

33

Trustees and Officers

This chart provides information about the Trustees and Officers who oversee your John
Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the
Fund and execute policies formulated by the Trustees.

Independent Trustees
Name, year of birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
James F. Carlin, Born: 1940	2005	57
Interim Chairman (since December 2007); Director and Treasurer, Alpha Analytical Laboratories, Inc.
(chemical analysis) (since 1985); Part Owner and Treasurer, Lawrence Carlin Insurance Agency, Inc.
(since 1995); Part Owner and Vice President, Mone Lawrence Carlin Insurance Agency, Inc. (until 2005);
Chairman and Chief Executive Officer, Carlin Consolidated, Inc. (management/investments) (since 1987);
Trustee, Massachusetts Health and Education Tax Exempt Trust (1993–2003).
William H. Cunningham, Born: 1944	2005	57
Former Chancellor, University of Texas System, and former President, University of Texas at Austin;
Chairman and Chief Executive Officer, IBT Technologies (until 2001); Director of the following:
Hire.com (until 2004), STC Broadcasting, Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc.
(electronic manufacturing) (since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods
Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation (insurance) (since 2006),
Jefferson-Pilot Corporation (diversified life insurance company) (until 2006), New Century Equity
Holdings (formerly Billing Concepts) (until 2001), eCertain (until 2001), ClassMap.com (until 2001),
Agile Ventures (until 2001), AskRed.com (until 2001), Southwest Airlines (since 2000), Introgen (man-
ufacturer of biopharmaceuticals) (since 2000) and Viasystems Group, Inc. (electronic manufacturer)
(until 2003); Advisory Director, Interactive Bridge, Inc. (college fundraising) (until 2001); Advisory
Director, Q Investments (until 2003); Advisory Director, JPMorgan Chase Bank (formerly Texas Commerce
Bank–Austin), LIN Television (since 2002), WilTel Communications (until 2003) and Hayes Lemmerz
International, Inc. (diversified automotive parts supply company) (since 2003).
Charles L. Ladner, 2 Born: 1938	2005	57
Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003); Senior Vice President
and Chief Financial Officer, UGI Corporation (public utility holding company) (retired 1998); Vice
President and Director, AmeriGas, Inc. (retired 1998); Director, AmeriGas Partners, L.P. (gas distribution)
(until 1997); Director, EnergyNorth, Inc. (until 1997); Director, Parks and History Association (until 2007).
John A. Moore,2 Born: 1939	2005	57
President and Chief Executive Officer, Institute for Evaluating Health Risks (nonprofit institution)
(until 2001); Senior Scientist, Sciences International (health research) (until 2003); Former Assistant
Administrator and Deputy Administrator, Environmental Protection Agency; Principal, Hollyhouse (con-
sulting) (since 2000); Director, CIIT Center for Health Science Research (nonprofit research) (since 2002).

34

Independent Trustees (continued)
Name, year of birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
Patti McGill Peterson,2 Born: 1943	2005	57
Executive Director, Council for International Exchange of Scholars and Vice President, Institute of In-
ternational Education (since 1998); Senior Fellow, Cornell Institute of Public Affairs, Cornell University
(until 1998); Former President, Wells College, Aurora, NY, and St. Lawrence University, Canton, NY;
Director, Niagara Mohawk Power Corporation (until 2003); Director, Ford Foundation, International
Fellowships Program (since 2002); Director, Lois Roth Endowment (since 2002); Director, Council for
International Educational Exchange (since 2003).
Steven R. Pruchansky, Born: 1944	2005	57
Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2000); Director and
President, Greenscapes of Southwest Florida, Inc. (until 2000); Managing Director, JonJames, LLC (real
estate) (since 2001); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty
Trust (until 1994); President, Maxwell Building Corp. (until 1991).
Non-Independent Trustees3
Name, year of birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
James R. Boyle, Born: 1959	2005	250
President, John Hancock Variable Life Insurance Company (since March 2007); Executive Vice President,
John Hancock Life Insurance Company (since June 2004); Chairman and Director, John Hancock
Advisers, LLC (the Adviser), John Hancock Funds, LLC and The Berkeley Financial Group, LLC (The
Berkeley Group) (holding company) (since 2005); Senior Vice President, The Manufacturers Life Insurance
Company (U.S.A.) (until 2004).

35

Principal officers who are not Trustees
Name, year of birth
Position(s) held with Fund	Officer
Principal occupation(s) and other	of Fund
directorships during past 5 years	since
Keith F. Hartstein, Born: 1956	2005
President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief
Executive Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since 2005); Director,
MFC Global Investment Management (U.S.), LLC (MFC Global (U.S.)) (since 2005); Director, John
Hancock Signature Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock
Investment Management Services, LLC (since 2006); President and Chief Executive Officer, John Hancock
Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Director,
Chairman and President, NM Capital Management, Inc. (since 2005); Chairman, Investment Company
Institute Sales Force Marketing Committee (since 2003); Director, President and Chief Executive Officer,
MFC Global (U.S.) (2005–2006); Executive Vice President, John Hancock Funds, LLC (until 2005).
Thomas M. Kinzler, Born: 1955	2006
Secretary and Chief Legal Officer
Vice President and Counsel, John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary
and Chief Legal Officer, John Hancock Funds and John Hancock Funds III (since 2006); Secretary, John
Hancock Funds II and Assistant Secretary, John Hancock Trust (since June 2007); Vice President and
Associate General Counsel, Massachusetts Mutual Life Insurance Company (1999–2006); Secretary and
Chief Legal Counsel, MML Series Investment Fund (2000–2006); Secretary and Chief Legal Counsel,
MassMutual Institutional Funds (2000–2004); Secretary and Chief Legal Counsel, MassMutual Select
Funds and MassMutual Premier Funds (2004–2006).
Francis V. Knox, Jr., Born: 1947	2005
Chief Compliance Officer
Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC,
the Adviser and MFC Global (U.S.) (since 2005); Vice President and Chief Compliance Officer, John
Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005);
Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics &
Compliance Officer, Fidelity Investments (until 2001).
Charles A. Rizzo, Born: 1957	2007
Chief Financial Officer
Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John
Hancock Trust (since June 2007); Assistant Treasurer, Goldman Sachs Mutual Fund Complex (regis-
tered investment companies) (2005–June 2007); Vice President, Goldman Sachs (2005–June 2007);
Managing Director and Treasurer of Scudder Funds, Deutsche Asset Management (2003–2005);
Director, Tax and Financial Reporting, Deutsche Asset Management (2002–2003); Vice President and
Treasurer, Deutsche Global Fund Services (1999–2002).
Gordon M. Shone, Born: 1956	2006
Treasurer
Treasurer, John Hancock Funds (since 2006), John Hancock Funds II, John Hancock Funds III and John
Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003–2005);
Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President, John
Hancock Investment Management Services, Inc., John Hancock Advisers, LLC (since 2006) and The
Manufacturers Life Insurance Company (U.S.A.) (1998–2000).

36

Principal officers who are not Trustees (continued)
Name, year of birth
Position(s) held with Fund	Officer
Principal occupation(s) and other	of Fund
directorships during past 5 years	since
John G. Vrysen, Born: 1955	2005
Chief Operating Officer
Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President
and Chief Operating Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since
June 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III
and John Hancock Trust (since June 2007); Director, Executive Vice President and Chief Financial Officer,
the Adviser, The Berkeley Group and John Hancock Funds, LLC (until June 2007); Executive Vice President
and Chief Financial Officer, John Hancock Investment Management Services, LLC (since 2005); Vice
President and Chief Financial Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature
Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John
Hancock Funds III and John Hancock Trust (2005–June 2007); Vice President and General Manager, Fixed
Annuities, U.S. Wealth Management (until 2005); Vice President, Operations, Manulife Wood Logan
(2000–2004).

The business address for all Trustees and Officers is 601 Congress Street, Boston, Massachusetts 02210-2805.

The Statement of Additional Information of the Fund includes additional information about members of the Board of Trustees of the Fund and is available without charge, upon request, by calling 1-800-225-5291.

¹ Each Trustee serves until resignation, retirement age or until his or her successor is elected.

² Member of Audit and Compliance Committee.

³ Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.

37

Why John Hancock Funds?

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 “Outstanding Web Site” by the Web Marketing Association.

  “Creative excellence on the Web, Silver Award winner” by W³.

Discover convenience and comprehensive resources at one easy-to-access location. Your financial professional can steer you to the tools that will help you the most and enable you to transform your knowledge into action.

See how far www.jhfunds.com can take you!

For more information

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

By phone	On the Fund’s Web site	On the SEC’s Web site
1-800-225-5291	www.jhfunds.com/proxy	www.sec.gov
Investment adviser	Custodian	Legal counsel
John Hancock Advisers, LLC	The Bank of New York	Kirkpatrick & Lockhart
601 Congress Street	One Wall Street	Preston Gates Ellis LLP
Boston, MA 02210-2805	New York, NY 10286	One Lincoln Street
		Boston, MA 02111-2950
Subadviser	Transfer agent
MFC Global (U.S.A.) Limited	John Hancock Signature	Independent registered public
200 Bloor Street East	Services, Inc.	accounting firm
Toronto, Ontario, Canada	P.O. Box 9510	PricewaterhouseCoopers LLP
M4W IE5	Portsmouth, NH 03802-9510	125 High Street
		Boston, MA 02110
Principal distributor
John Hancock Funds, LLC
601 Congress Street
Boston, MA 02210-2805

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

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

40

J O H N   H A N C O C K   F A M I L Y   O F  F U N D S

EQUITY	SECTOR
Balanced Fund	Financial Industries Fund
Classic Value Fund	Health Sciences Fund
Classic Value Fund II	Real Estate Fund
Classic Value Mega Cap Fund	Regional Bank Fund
Core Equity Fund	Technology Fund
Growth Fund	Technology Leaders Fund
Growth Opportunities Fund
Growth Trends Fund	INTERNATIONAL/GLOBAL
Intrinsic Value Fund	Global Opportunities Fund
Large Cap Equity Fund	Global Shareholder Yield Fund
Large Cap Select Fund	Greater China Opportunities Fund
Mid Cap Equity Fund	International Allocation Portfolio
Small Cap Equity Fund	International Classic Value Fund
Small Cap Fund	International Core Fund
Small Cap Intrinsic Value Fund	International Growth Fund
Sovereign Investors Fund
U.S. Core Fund	INCOME
U.S. Global Leaders Growth Fund	Bond Fund
Value Opportunities Fund	Government Income Fund
	High Yield Fund
ASSET ALLOCATION	Investment Grade Bond Fund
Lifecycle 2010 Portfolio	Strategic Income Fund
Lifecycle 2015 Portfolio
Lifecycle 2020 Portfolio	TAX - FREE INCOME
Lifecycle 2025 Portfolio	California Tax-Free Income Fund
Lifecycle 2030 Portfolio	High Yield Municipal Bond Fund
Lifecycle 2035 Portfolio	Massachusetts Tax-Free Income Fund
Lifecycle 2040 Portfolio	New York Tax-Free Income Fund
Lifecycle 2045 Portfolio	Tax-Free Bond Fund
Lifecycle Retirement Portfolio
Lifestyle Aggressive Portfolio	MONEY MARKET
Lifestyle Balanced Portfolio	Money Market Fund
Lifestyle Conservative Portfolio
Lifestyle Growth Portfolio	CLOSED - END
Lifestyle Moderate Portfolio	Bank and Thrift Opportunity Fund
	Income Securities Trust
	Investors Trust
	Patriot Premium Dividend Fund II
	Preferred Income Fund
	Preferred Income II Fund
	Preferred Income III Fund
	Tax-Advantaged Dividend Income Fund
	Tax-Advantaged Global Shareholder Yield Fund

A Fund’s investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus includes this and other important information about the Fund. To obtain a prospectus, contact your financial professional, call John Hancock Funds at 1-800-225-5291 or visit the Fund’s Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.

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

Now available:electronicdelivery
www.jhfunds. com/edelivery

This report is for the information of the shareholders of John HancockGreater China Opportunities Fund.
It is not authorized for distribution to prospectiveinvestors unless preceded or accompanied by a prospectus.

0800A 10/07
12/07

ITEM 2. CODE OF ETHICS.

As of the end of the period, October 31, 2007, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Senior Financial Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Charles L. Ladner is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees

The aggregate fees billed for professional services rendered by the principal accountant(s) for the audit of the registrant's annual financial statements or services that are normally provided by the accountant(s) in connection with statutory and regulatory filings or engagements amounted to $19,000 for the fiscal year ended October 31, 2007 (broken out as follows: John Hancock Greater China Opportunities Fund - $19,000; John Hancock International Fund and John Hancock Mid Cap Growth Fund merged into other funds on May 25, 2007 ) and $74,650 for the fiscal year ended October 31, 2006 (broken out as follows: John Hancock International Fund - $32,000, John Hancock Mid Cap Growth Fund - $23,650 and John Hancock Greater China Opportunities Fund - $19,000 ). John Hancock Greater China Opportunities Fund commenced operations on June 8, 2005. These fees were billed to the registrant and were approved by the registrant's audit committee.

(b) Audit-Related Services

There were no audit-related fees during the fiscal year ended October 31, 2007 and fiscal year ended October 31, 2006 billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant ("control affiliates").

(c) Tax Fees

The aggregate fees billed for professional services rendered by the principal accountant(s) for the tax compliance, tax advice and tax planning ("tax fees") amounted to $9,400 for the fiscal year ended October 31, 2007 (broken out as follows: $3,500 and John Hancock Greater China Opportunities Fund - $3,500) and $9,750 for the fiscal year ended October 31, 2006 (broken out as follows: John Hancock International Fund - $3,500, John Hancock Mid Cap Growth Fund - $2,750 and John Hancock Greater China Opportunities Fund - $3,500). The nature of the services comprising the tax fees was the review of the registrant's income tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee. There were no tax fees billed to the control affiliates.

(d) All Other Fees

There were no other fees during the fiscal year ended October 31, 2007 and fiscal year ended October 31, 2006 billed to the registrant or to the control affiliates.

(e)(1) See attachment "Approval of Audit, Audit-related, Tax and Other Services", with the audit committee pre-approval policies and procedures.

(e)(2) There were no fees that were approved by the audit committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the

registrant or on behalf of the control affiliates that relate directly to the operations and financial reporting of the registrant.

(f) According to the registrant's principal accountant, for the fiscal year ended October 31, 2007, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.

(g) The aggregate non-audit fees billed by the registrant's accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates for each of the last two fiscal years of the registrant were $1,412,569 for the fiscal year ended October 31, 2007 and $520,432 for the fiscal year ended October 31, 2006.

(h) The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:

Dr. John A. Moore - Chairman
Richard P. Chapman, Jr.
Charles L. Ladner
Patti McGill Peterson

ITEM 6. SCHEDULE OF INVESTMENTS.

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

The registrant has adopted procedures by which shareholders August 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 - Governance Committee Charter".

ITEM 11. CONTROLS AND PROCEDURES.

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

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

ITEM 12. EXHIBITS.

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

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

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

(c)(1) Approval of Audit, Audit-related, Tax and Other Services is attached.

(c)(2) Submission of Matters to a Vote of Security Holders is attached. See attached "John Hancock Funds - Governance Committee Charter".

(c)(3) 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 Investment Trust III

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

Date: December 19, 2007

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

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

Date: December 19, 2007

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

Date: December 19, 2007

EX-99.CERT

CERTIFICATION

I, Keith F. Hartstein, certify that:

1. I have reviewed this report on Form N-CSR of the John Hancock Investment Trust III (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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

Date: December 19, 2007

CERTIFICATION

I, Charles A. Rizzo, certify that:

1. I have reviewed this report on Form N-CSR of the John Hancock Investment Trust III (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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

Date: December 19, 2007

EX-99.906 CERT

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the attached Report of John Hancock Investment Trust III (the "registrant") on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the registrant does hereby certify that, to the best of such officer's knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report.

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

Dated: December 19, 2007

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

Dated: December 19, 2007

A signed original of this written statement, required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.CODE ETH

JOHN HANCOCK TRUST
JOHN HANCOCK FUNDS
JOHN HANCOCK FUNDS II
JOHN HANCOCK FUNDS III
JOHN HANCOCK FINANCIAL TRENDS FUND, INC.

SARBANES-OXLEY CODE OF ETHICS
FOR
PRINCIPAL EXECUTIVE &PRINCIPAL FINANCIAL OFFICERS

I.Covered Officers/Purpose of the Code

This code of ethics (this “Code”) for John Hancock Trust, John Hancock Funds¹, John Hancock Funds II, John Hancock Funds III, and John Hancock Financial Trends Fund, Inc., each a registered management investment company under the Investment Company Act of 1940, as amended (“1940 Act”), which may issue shares in separate and distinct series (each investment company and series thereunder to be hereinafter referred to as a “Fund”), applies to each Fund’s Principal Executive Officer (“President”) and Principal Financial Officer (“Chief Financial Officer”) (the “Registrant’s Executive Officers” or “Executive Officers” as set forth in Exhibit A) for the purpose of promoting:

►honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

►full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Fund;

►compliance with applicable laws and governmental rules and regulations;

►the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

►accountability for adherence to the Code.

^{______________________________________
1} John Hancock Funds includes the following trusts: John Hancock Bank and Thrift Opportunity Fund; John Hancock Bond Trust; John Hancock California Tax-Free Income Fund; John Hancock Capital Series; John Hancock Current Interest; John Hancock Equity Trust; John Hancock Income Securities Trust; John Hancock Institutional Series Trust; John Hancock Investment Trust; John Hancock Investment Trust II; John Hancock Investment Trust III; John Hancock Investors Trust; John Hancock Municipal Securities Trust; John Hancock Patriot Global Dividend Fund; John Hancock Patriot Preferred Dividend Fund; John Hancock Patriot Premium Dividend Fund I; John Hancock Patriot Premium Dividend Fund II; John Hancock Patriot Select Dividend Trust; John Hancock Preferred Income Fund; John Hancock Preferred Income Fund II; John Hancock Preferred Income Fund III; John Hancock Series Trust; John Hancock Sovereign Bond Fund; John Hancock Strategic Series; John Hancock Tax-Exempt Series Fund; and John Hancock World Fund

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Each of the Registrant’s Executive Officers should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II.Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest Overview

A “conflict of interest” occurs when an Executive Officer’s private interest interferes with the interests of, or his service to, the Fund. For example, a conflict of interest would arise if a Registrant’s Executive Officers, or a member of his family, receives improper personal benefits as a result of his position with the Fund. Certain conflicts of interest arise out of the relationships between the Executive Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the “Investment Company Act”) and the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”). For example, Executive Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as “affiliated persons” of the Fund. Each of the Registrant’s Executive Officers is a n officer or employee of the investment adviser or a service provider (“Service Provider”) to the Fund. The Fund’s, the investment adviser’s and the Service Provider’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the investment adviser and the Service Provider of which the Executive Officers are also officers or employees. As a result, this Code recognizes that the Registrant’s Executive Officers will, in the normal course of their duties (whether formally for the Fund, for the investment adviser or for the Service Provider), be involved in establishing policies and implementing decisions which will have different effects on the investment adviser, the Service Provider and the Fund. The participation of the Executive Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser and the Service Provider and is consistent with the performance by the Executive Officers of their duties as officers of the Fund. Thus, if such participation is performed in confor mity with the provisions of the Investment Company Act and the Investment Advisers Act, it will be deemed to have been handled ethically. In addition, it is recognized by the Fund’s Board of Trustees/Directors (the “Board”) that the Executive Officers may also be officers or employees of one or more other investment companies covered by other Codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but the Registrant’s Executive Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of an Executive Officer should not be placed improperly before the interest of the Fund.

*           *           *

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Each Covered Officer must:

►not use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Executive Officer would benefit personally to the detriment of the Fund;

►not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Executive Officer rather than for the benefit of the Fund; and

►not use material non-public knowledge of portfolio transactions made or contemplated for the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

Additionally, conflicts of interest may arise in other situations, the propriety of which may be discussed, if material, with the Fund’s Chief Compliance Officer (“CCO”). Examples of these include:

►service as a director/trustee on the board of any public or private company;

►the receipt of any non-nominal gifts;

►the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety (or other formulation as the Fund already uses in another code of conduct);

►any ownership interest in, or any consulting or employment relationship with, any of the Fund’s service providers, other than its investment adviser, any sub-adviser, principal underwriter, administrator or any affiliated person thereof; and

►a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Executive Officer’s employment, such as compensation or equity ownership.

III.Disclosure & Compliance

►Each Executive Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Fund;

►Each Executive Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund’s directors and auditors, and to governmental regulators and self-regulatory organizations;

►Each Executive Officer should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Fund and the Fund’s adviser or any sub-adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and

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►It is the responsibility of each Executive Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV.Reporting & Accountability

Each Executive Officer must:

► upon adoption of the Code (or thereafter as applicable, upon becoming an Executive Officer), affirm in writing to the Fund’s CCO that he/she has received, read, and understands the Code;

►annually thereafter affirm to the Fund’s CCO that he/she has complied with the requirements of the Code;

►not retaliate against any employee or Executive Officer or their affiliated persons for reports of potential violations that are made in good faith;

►notify the Fund’s CCO promptly if he/she knows of any violation of this Code (Note: failure to do so is itself a violation of this Code); and

►report at least annually any change in his/her affiliations from the prior year.

The Fund’s CCO is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers sought by the Principal Executive Officer will be considered by the Fund’s Board or the Compliance Committee thereof (the “Committee”).

The Fund will follow these procedures in investigating and enforcing this Code:

►the Fund’s CCO will take all appropriate action to investigate any potential violations reported to him/her;

►if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take any further action;

►any matter that the CCO believes is a violation will be reported to the Board or, if applicable, Compliance Committee;

►if the Board or, if applicable, Compliance Committee concurs that a violation has occurred, the Board, either upon its determination of a violation or upon recommendation of the Compliance Committee, if applicable, will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Service Provider or the investment adviser or its board; or a recommendation to dismiss the Registrant’s Executive Officer;

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►the Board, or if applicable the Compliance Committee, will be responsible for granting waivers, as appropriate; and

►any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V.Other Policies & Procedures

This Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Fund, the Fund’s adviser, any sub-adviser, principal underwriter or other service providers govern or purport to govern the behavior or activities of the Registrant’s Executive Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Fund’s and its investment adviser’s codes of ethics under Rule 204A-1 under the Investment Advisers Act and Rule 17j-1 under the Investment Company Act, respectively, are separate requirements applying to the Registrant’s Executive Officers and others, and are not part of this Code.

VI.Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Fund’s Board, including a majority of independent directors.

VII.Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fund’s Board and its counsel, the investment adviser and the relevant Service Providers.

VIII.Internal Use

The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of the Fund, as to any fact, circumstance, or legal conclusion.

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Exhibit A
Persons Covered by this Code of Ethics
(As of June 2007)

John Hancock Trust
►Principal Executive Officer and President – Keith Hartstein
►Principal Financial Officer and Chief Financial Officer – Lynne Patterson

John Hancock Funds
►Principal Executive Officer and President – Keith Hartstein
►Principal Financial Officer and Chief Financial Officer – Charles Rizzo

John Hancock Funds II
►Principal Executive Officer and President – Keith Hartstein
►Principal Financial Officer and Chief Financial Officer – Charles Rizzo

John Hancock Funds III
►Principal Executive Officer and President – Keith Hartstein
►Principal Financial Officer and Chief Financial Officer – Charles Rizzo

John Hancock Financial Trends Fund, Inc.
►Principal Executive Officer and President – Keith Hartstein
►Principal Financial Officer and Chief Financial Officer – Charles Rizzo

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EX-99

JOHN HANCOCK FUNDS

AUDIT COMMITTEE CHARTER

A. Membership. The Audit Committee shall be composed exclusively of Trustees who are not "interested persons" as defined in the Investment Company Act of 1940 of any of the funds, or of any fund's investment adviser or principal underwriter (the "Independent Trustees") and who satisfy the independence and financial literacy requirements in this charter. The Audit Committee shall be composed of at least three Independent Trustees who are designated for membership from time to time by the Board of Trustees of Trustees. In selecting Independent Trustees to serve on the Audit Committee, the Board should select members who are free of any relationship that, in the opinion of the Board, may interfere or give the appearance of interfering with such member's individual exercise of independent judgment. Unless otherwise determined by the Board, no member of the Audit Committee may serve on the audit committee of more than two other public companies (other than another John Hancock Fund). Except as otherwise permitted by the applicable rules of the New York Stock Exchange, each member of the Audit Committee shall be independent as defined by such rules and Rule 10A-3(b)(1) of the Exchange Act. Each member of the Audit Committee must be financially literate, as such qualification is interpreted by the Board of Trustees in its business judgment, or must become financially literate within a reasonable period of time after his or her appointment to the Audit Committee. At least one member of the Audit Committee must have accounting or related financial management expertise, as the Board of Trustees interprets such qualification in its business judgment.

B. Overview. The Audit Committee's purpose is to:

1. assist the Board of Trustee's oversight of (1) the integrity of the funds' financial statements, (2) the funds' compliance with legal and regulatory requirements (except to the extent such responsibility is delegated to another committee), (3) the independent auditor's qualifications and independence, and (4) the performance of the funds' internal audit function and independent auditors;

2. act as a liaison between the funds' independent accountants and the Board of Trustees;

3. prepare an Audit Committee Report as required by the Securities and Exchange Commission (the "SEC") to the extent required to be included in the funds' annual proxy statement or other filings;

The Audit Committee shall discharge its responsibilities, and shall access

the information provided by the funds' management and independent auditors, in accordance with its business judgment. Management is responsible for the preparation of the fund's financial statements and the independent auditors are responsible for auditing those financial statements. The Audit Committee and the Board of Trustees recognize that management (including the internal audit staff) and the independent auditors have more experience, expertise, resources and time, and more detailed knowledge and information regarding a fund's accounting, auditing, internal control and financial reporting practices than the Audit Committee does. Accordingly, the Audit Committee's oversight role does not provide any expert or special assurance as to the financial statements and other financial information provided by a fund to its shareholders and others. The independent auditors are responsible for auditing the funds' annual financial statements. The authority and responsibilities set forth in this charter do not reflect or create any duty or obligation of the Audit Committee to plan or conduct any audit, to determine or certify that any fund's financial statements are complete, accurate, fairly presented, or in accordance with generally accepted accounting principles or applicable law, or to guarantee any independent auditor's report.

C. Oversight. The independent auditors shall report directly to the Audit Committee, and the Audit Committee shall be responsible for oversight of the work of the independent auditors, including resolution of any disagreements between any fund's management and the independent auditors regarding financial reporting. In connection with its oversight role, the Audit Committee should also review with the independent auditors, from time to time as appropriate: significant risks and uncertainties with respect to the quality, accuracy or fairness of presentation of a fund's financial statements; recently disclosed problems with respect to the quality, accuracy or fairness of presentation of the financial statements of companies similarly situated to the funds and recommended actions which might be taken to prevent or mitigate the risk of problems at the funds arising from such matters; accounting for unusual transactions; adjustments arising from audits that could have a significant impact on the funds' financial reporting process; and any recent SEC comments on the funds' SEC reports, including, in particular, any compliance comments. The Audit Committee should inquire of the independent auditor concerning the quality, not just the acceptability, of the funds' accounting determinations and other judgmental areas and question whether management's choices of accounting principles are, as a whole, conservative, moderate or aggressive.

D. Specific Responsibilities. The Audit Committee shall have the following duties and powers, to be exercised at such times and in such manner as the Committee shall deem necessary or appropriate:

1. To oversee the funds' auditing and accounting process.

2. To approve, and recommend to the Board of Trustees of Trustees for its ratification and approval in accord with applicable law, the selection, appointment and retention of an independent auditor for each fund prior to the engagement of such independent auditor and, at an appropriate time, its compensation. The Committee should meet with the independent auditor prior to the audit to discuss the planning and staffing of the audit. The Committee should periodically consider whether, in order to assure continuing auditor independence, there should be regular rotation of the independent audit firm and obtain and review a copy of the most recent report on the independent auditor issued by the Public Company Accounting Oversight Board pursuant to Section 104 of the Sarbanes-Oxley Act.

3. To periodically review and evaluate the lead partner and other senior members of the independent auditor's team and confirm the regular rotation of the lead audit partner and reviewing partner as required by Section 203 of the Sarbanes-Oxley Act.

4. To confirm that the officers of the funds were not employed by the independent auditor, or if employed, did not participate in any capacity in the audit of the funds, in each case, during the one-audit-year period preceding the date of initiation of the audit, as required by Section 206 of the Sarbanes-Oxley Act.

5. To pre-approve all non-audit services provided by the independent auditor to the fund or to the fund's investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the fund, if the engagement relates directly to the operations and financial reporting of the fund.

6. The Committee is authorized to delegate, to the extent permitted by law, pre-approval responsibilities to one or more members of the Committee who shall report to the Committee regarding approved services at the Committee's next regularly scheduled meeting. The Committee is also authorized to adopt policies and procedures which govern the pre-approval of audit, audit-related, tax and other services provided by the independent accountants to the funds or to a service provider as referenced in Paragraph 5, provided however, that any such policies and procedures are detailed as to particular services, the Audit Committee is informed of each service, and any such policies and procedures do not include the delegation of the Audit Committee's responsibilities under the Securities Exchange Act of 1934 or applicable rules or listing requirements.

7. To monitor the independent auditor of each fund throughout the engagement to attempt to identify: conflicts of interest between management and the independent auditor as a result of employment relationships; the provision of prohibited non-audit services to a fund by its independent

auditor; violations of audit partner rotation requirements; and prohibited independent auditor compensation arrangements whereby individuals employed by the auditor are compensated based on selling non-audit services to the fund. The independent auditors should promptly contact the Audit Committee or its Chair about any significant issue or disagreement concerning a fund's accounting practices or financial statements that is not resolved to their satisfaction or if Section 10A(b) of the Exchange Act has been implicated.

8. To meet with independent auditors, including private meetings, as necessary, management's internal auditors, and the funds' senior management (i) to review the arrangements for and scope of the annual audit and any special audits; (ii) to review the form and substance of the funds' financial statements and reports, including each fund's disclosures under "Management's Discussion of Fund Performance" and to discuss any matters of concern relating to the funds' financial statements, including any adjustments to such statements recommended by the independent accountants, or other results of an audit; (iii) to consider the independent accountants' comments with respect to the funds' financial policies, procedures and internal accounting controls and management's responses thereto; (iv) to review the resolution of any disagreements between the independent accountants and management regarding the funds' financial reporting; and (v) to review the form of opinion the independent accountants propose to render to the Board and shareholders. The Audit Committee should request from the independent auditors a frank assessment of management.

9. With respect to any listed fund, to consider whether it will recommend to the Board of Trustees that the audited financial statements be included in a fund's annual report. The Board delegates to the Audit Committee the authority to release the funds' financial statements for publication in the annual and semi-annual report, subject to the Board's right to review and ratify such financial statements following publication. With respect to each fund, to review and discuss with each fund's management and independent auditor the funds' audited financial statements and the matters about which Statement on Auditing Standards No. 61 (Codification of Statements on Auditing Standards, AU 380) requires discussion. The Audit Committee shall prepare an annual committee report for inclusion where necessary in the proxy statement of a fund relating to its annual meeting of security holders or in any other filing required by the SEC's rules.

10. To receive and consider reports on the audit functions of the independent auditors and the extent and quality of their auditing programs.

11. To assist the Board of Trustees in monitoring the Office of the Chief Compliance Officer (the "CCO") by:

• Reviewing, no less frequently than annually, the CCO's report on the operation of the compliance programs of the funds and compliance programs of the funds' adviser, sub-advisers, principal underwriter, administrator, and transfer agent (collectively, "service providers").

• Reviewing matters relating to the compliance programs of the funds and the compliance programs of their service providers and compliance matters relating to the funds and their service providers as may be presented to the Committee by the CCO.

• Making recommendations to the Board of Trustees regarding changes to the funds' compliance program, as may be necessary or appropriate from time to time.

• Reviewing the compliance programs for proposed service providers to the funds, including subadvisers, and making recommendations regarding approval of such compliance programs to the Board of Trustees.

• Reviewing regulatory inquiries relating to the funds and their service providers as may be presented to the Committee by the CCO.

• Reviewing the CCO's goals and objectives and making recommendations to the Board of Trustees regarding the CCO's compensation, including bonus and merit components.

• Reviewing the CCO's annual budget and making recommendations to the Board of Trustees regarding its approval and the amount of such budget that should be an expense of the funds.

12. To obtain and review, at least annually, a report by the independent auditor describing: the firm's internal quality-control procedures; any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues; and all relationships between the independent auditor and each fund, including the disclosures required by any applicable Independence Standards Board Standard. The Audit Committee shall engage in an active dialogue with each independent auditor concerning any disclosed relationships or services that might impact the objectivity and independence of the auditor.

13. To review with the independent auditor any problems that may be reported to it arising out of a fund's accounting, auditing or financial reporting functions and management's response, and to receive and consider reports on critical accounting policies and practices and alternative

treatments discussed with management.

14. To review the procedures for allocating fund brokerage, the allocation of trades among various accounts under management and the fees and other charges for fund brokerage.

15. To receive and consider reports from the independent auditors regarding reviews of the operating and internal control structure of custodian banks and transfer agents, including procedures to safeguard fund assets.

16. To monitor securities pricing procedures and review their implementation with management, management's internal auditors, independent auditors and others as may be required.

17. To establish and monitor, or cause to be established and monitored, procedures for the receipt, retention, and treatment of complaints received by a fund regarding accounting, internal accounting controls, or auditing matters, and the confidential, anonymous submission by employees of the investment adviser, administrator, principal underwriter or any other provider of accounting-related services for a listed fund, as well as employees of the fund, if any, regarding questionable accounting or auditing matters, as and when required by applicable rules or listing requirements. The procedures currently in effect are attached as Exhibit A.

18. To report regularly to the Board of Trustees, including providing the Audit Committee's conclusions with respect to the independent auditor and the funds' financial statements and accounting controls.

E. Subcommittees. The Audit Committee may, to the extent permitted by applicable law, form and delegate authority to one or more subcommittees (including a subcommittee consisting of a single member), as it deems appropriate from time to time under the circumstances. Any decision of a subcommittee to preapprove audit or non-audit services shall be presented to the full Audit Committee at its next meeting.

F. Additional Responsibilities. The Committee shall serve as the "qualified legal compliance committee" (as such term is defined in 17 CFR Part 205)("QLCC"), the duties of which are listed on Exhibit B to this charter; and shall also perform other tasks assigned to it from time to time by the Board of Trustees, and will report findings and recommendations to the Board of Trustees, as appropriate.

G. Funding. Each fund shall provide for appropriate funding, as determined by the Audit Committee, in its capacity as a committee of the Board of Trustees, for payment of:

1. Compensation to any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the fund.

2. Compensation to any counsel, advisers, experts or consultants engaged by the Audit Committee under Paragraph J of this charter.

3. Ordinary administrative expenses of the Audit Committee that are necessary or appropriate in carrying out its duties.

H. Governance. One member of the Committee shall be appointed as chair. The chair shall be responsible for leadership of the Committee, including scheduling meetings or reviewing and approving the schedule for them, preparing agendas or reviewing and approving them before meetings, presiding over meetings, and making reports to the Board of Trustees, as appropriate. The designation of a person as an "audit committee financial expert", within the meaning of the rules under Section 407 of the Sarbanes-Oxley Act of 2002, shall not impose any greater responsibility or liability on that person than the responsibility and liability imposed on such person as a member of the Committee, nor shall it decrease the duties and obligations of other Committee members or the Board of Trustees. Any additional compensation of Audit Committee members shall be as determined by the Board of Trustees. No member of the Audit Committee may receive, directly or indirectly, any consulting, advisory or other compensatory fee from a fund, other than fees paid in his or her capacity as a member of the Board of Trustees or a committee of the Board of Trustees. The members of the Audit Committee should confirm that the minutes of the Audit Committee's meetings accurately describe the issues considered by the Committee, the process the Committee used to discuss and evaluate such issues and the Committee's final determination of how to proceed. The minutes should document the Committee's consideration of issues in a manner that demonstrates that the Committee acted with due care.

I. Evaluation. At least annually, the Audit Committee shall evaluate its own performance, including whether the Audit Committee is meeting frequently enough to discharge its responsibilities appropriately.

J. Miscellaneous. The Committee shall meet as often as it deems appropriate, with or without management, as circumstances require. The Committee shall have the resources and authority appropriate to discharge its responsibilities, including the authority to retain special counsel and other advisers, experts or consultants, at the funds' expense, as it determines necessary to carry out its duties. The Committee shall have direct access to such officers of and service providers to the funds as it deems desirable.

K. Review. The Committee shall review this charter at least annually

and shall recommend such changes to the Board of Trustees as it deems desirable.

EXHIBIT A

Policy for Raising and Investigating Complaints or Concerns About Accounting or Auditing Matters

As contemplated by the Audit Committee Charter, the Committee has established the following procedures for:

• the receipt, retention and treatment of complaints received by a fund regarding accounting, internal accounting controls or auditing matters; and

• the confidential, anonymous submission by employees of the investment adviser, administrator, principal underwriter or any other provider of accounting-related services for a listed fund, as well as employees of the fund ("covered persons") of concerns regarding questionable accounting or auditing matters.

A. Policy Objectives

The objective of this policy is to provide a mechanism by which complaints and concerns regarding accounting, internal accounting controls or auditing matters may be raised and addressed without the fear or threat of retaliation. The funds desire and expect that covered persons will report any complaints or concerns they may have regarding accounting, internal accounting controls or auditing matters.

B. Procedures for Raising Complaints and Concerns

The funds' Secretary shall be responsible for communicating these procedures to covered persons. Covered persons with complaints regarding accounting, internal accounting controls or auditing matters or concerns regarding questionable accounting or auditing matters may submit such complaints or concerns to the attention of the funds' Secretary by sending a letter or other writing to the funds' principal executive offices. Complaints and concerns may be made anonymously. Alternatively, any complaints or concerns may also be communicated anonymously directly to any member of the Audit Committee.

C. Procedures for Investigating and Resolving Complaints and Concerns

If any complaints or concerns regarding internal accounting controls or auditing matters that could affect the funds are received through the

Ethics Line or any other similar facility maintained by John Hancock Financial Services, they shall be communicated promptly to the funds' Secretary and shall be reported by the funds' Secretary to the Audit Committee, promptly or quarterly according to the guidelines set forth below.

The funds' Secretary shall report to the Audit Committee as to whether those responsible for the Ethics Line or similar facility have a procedure in place to communicate promptly any such complaints or concerns to the funds' Secretary, and whether any such communication would violate the terms thereof.

All complaints and concerns received will be promptly forwarded to the Audit Committee or the chair of the Audit Committee, unless they are determined to be without merit by Secretary of the funds. If sent only to the chair, the chair may determine the appropriate response or may refer the issues to the entire Audit Committee. In any event, the funds' Secretary will provide a record of all complaints and concerns received (whether or not determined to have merit) to the Audit Committee quarterly.

The Audit Committee will evaluate any complaints or concerns received (including those reported to the committee on a quarterly basis and which the funds' Secretary has previously determined to be without merit). If the Audit Committee requires additional information to evaluate any complaint or concern, it may conduct an investigation, including interviews of persons believed to have relevant information. The Audit Committee may, in its discretion, assume responsibility for directing or conducting any investigation or may delegate such responsibility to another person or entity.

After its evaluation of the complaint or concern, the Audit Committee will authorize such follow-up actions, if any, as deemed necessary and appropriate to address the substance of the complaint or concern. The funds reserve the right to take whatever action the Audit Committee believes appropriate, up to and including discharge of any employee deemed to have engaged in improper conduct.

Regardless of whether a complaint or concern is submitted anonymously, the Audit Committee will strive to keep all complaints and concerns and the identity of those who submit them and participate in any investigation as confidential as possible, limiting disclosure to those with a business need to know or as required by law or recommended by legal counsel.

No covered person shall penalize or retaliate against any other covered person for reporting a complaint or concern, unless it is determined that the complaint or concern was made with knowledge that it was false. The funds will not tolerate retaliation against any covered person for

submitting, or for cooperating in the investigation of, a complaint or concern. Moreover, any such retaliation is unlawful and may result in criminal action. Any retaliation will warrant disciplinary action against the offending party, up to and including termination of employment.

John Hancock Advisers, LLC shall include this policy in its employee manual and shall distribute, at least annually, the policy to all of its employees.

The funds' Secretary shall retain records of all complaints and concerns received, and the disposition thereof, for five years.

D. Notification of Others

At any time during an evaluation or investigation of a complaint or concern, the chair of the Audit Committee may notify the funds' CCO, the QLCC, or any other party with a need to know of the receipt of a complaint or concern and/or the progress or results of any review and/or investigation of a complaint or concern. The chair of the Audit Committee may provide such level of detail as may be necessary to allow the appropriate consideration by such parties in light of the funds' ongoing obligations, including, but not limited to, disclosure obligations or any required officer certifications.

EXHIBIT B

QLCC DUTIES AND RESPONSIBILITIES

The QLCC shall adopt written procedures for the confidential receipt, retention, and consideration of any report of evidence of a material violation.

The QLCC has the authority and responsibility, once a report of evidence of a material violation by a fund, its officers, directors, employees or agents has been received by the QLCC:

1. to inform the CLO and CEO of such report (except in the case where the reporting attorney reasonably believes that it would be futile to report evidence of a material violation to the CLO and CEO, and has informed the QLCC of such belief); and

2. to determine whether an investigation is necessary or appropriate, and, if it determines an investigation is necessary or appropriate, to:

(A) notify the Board of Trustees;

(B) notify the funds' CCO;

(C) initiate an investigation, which may be conducted either by the CLO or by outside attorneys; and

(D) retain such additional expert personnel as the QLCC deems necessary;

and, at the conclusion of such investigation, to:

(A) recommend, by majority vote, that the fund implement an appropriate response to evidence of a material violation; and

(B) inform the CLO, CEO the funds' CCO and the Board of Trustees of the results of any such investigation and the appropriate remedial measures.

3. by majority vote, to take all other appropriate action, including notifying the U.S. Securities and Exchange Commission in the event that the fund fails in any material respect to implement an appropriate response that the QLCC has recommended.

EX-99

JOHN HANCOCK FUNDS

GOVERNANCE COMMITTEE CHARTER

A. Composition. The Governance Committee shall be composed entirely of Trustees who are "independent" as defined in the rules of the New York Stock Exchange ("NYSE") and the NASDAQ Stock Market, Inc. ("NASDAQ") or any other exchange, as applicable, and are not "interested persons" as defined in the Investment Company Act of 1940 of any of the funds, or of any fund's investment adviser or principal underwriter (the "Independent Trustees") who are designated for membership from time to time by the Board of Trustees. The Chairman of the Board shall be a member of the Governance Committee.

B. Overview. The overall charter of the Governance Committee is to make recommendations to the Board on issues related to corporate governance applicable to the Independent Trustees and to the composition and operation of the Board, and to assume duties, responsibilities and functions to recommend nominees to the Board, together with such additional duties, responsibilities and functions as are delegated to it from time to time.

C. Specific Responsibilities. The Governance Committee shall have the following duties and powers, to be exercised at such times and in such manner as the Committee shall deem necessary or appropriate:

1. Except where the funds are legally required to nominate individuals recommended by others, to recommend to the Board of Trustees individuals for nomination to serve as Trustees.

2. To consider, as it deems necessary or appropriate, the criteria for persons to fill existing or newly created Trustee vacancies. The Governance Committee shall use the criteria and principles set forth in Annex A to guide its Trustee selection process.

3. To consider and recommend the amount of compensation to be paid by the funds to the Independent Trustees, including incremental amounts, if any, payable to Committee Chairmen, and to address compensation-related matters.

4. To consider and recommend the duties and compensation of the Chairman of the Board.

5. To consider and recommend changes to the Board regarding the size, structure, and composition of the Board.

6. To evaluate, from time to time, the retirement policies for the Independent Trustees.

7. To develop and recommend to the Board guidelines for corporate governance ("Corporate Governance Guidelines") for the funds that take into account the rules of the NYSE and any applicable law or regulation, and to periodically review and assess the Corporate Governance Guidelines and recommend any proposed changes to the Board for approval.

8. To monitor all expenditures of the Board or the Committees or the Independent Trustees not otherwise incurred and/or monitored by a particular Committee, including, but not limited to: legal, consulting, and D&O insurance costs; association dues, including Investment Company Institute membership dues; meeting expenditures and policies relating to

reimbursement of travel expenses and expenses associated with offsite meetings; expenses associated with Trustee attendance at educational or informational conferences; and publication expenses.

9. To consider, evaluate and make recommendations and necessary findings regarding independent legal counsel and any other advisers, experts or consultants, that may be engaged by the Board of Trustees, by the Trustees who are not "interested persons" as defined in the Investment Company Act of 1940 of any of the funds or any fund's investment adviser or principal underwriter, or by the Governance Committee, from time to time, other than as may be engaged directly by another Committee.

10. To periodically review the Board's committee structure and the charters of the Board's committees, and recommend to the Board of Trustees changes to the committee structure and charters as it deems appropriate.

11. To coordinate and administer an annual self-evaluation of the Board, which will include, at a minimum, a review of its effectiveness in overseeing the number of funds in the fund complex and the effectiveness of its committee structure.

12. To report its activities to Board of Trustees and to make such recommendations with respect to the matters described above and other matters as the Governance Committee may deem necessary or appropriate.

D. Additional Responsibilities. The Committee will also perform other tasks assigned to it from time to time by the Chairman of the Board or by the Board of Trustees, and will report findings and recommendations to the Board of Trustees, as appropriate.

E. Governance. One member of the Committee shall be appointed as chair. The chair shall be responsible for leadership of the Committee, including scheduling meetings or reviewing and approving the schedule for them, preparing agendas or reviewing and approving them before meetings, and making reports to the Board of Trustees, as appropriate.

F. Miscellaneous. The Committee shall meet as often as it deems appropriate, with or without management, as circumstances require. The Committee shall have the resources and authority appropriate to discharge its responsibilities, including the authority to retain special counsel and other advisers, experts or consultants, at the funds' expense, as it determines necessary to carry out its duties. The Committee shall have direct access to such officers of and service providers to the funds as it deems desirable.

G. Review. The Committee shall review this Charter periodically and recommend such changes to the Board of Trustees as it deems desirable.

ANNEX A

General Criteria

1. Nominees should have a reputation for integrity, honesty and adherence to high ethical standards.

2. Nominees should have demonstrated business acumen, experience and ability to exercise sound judgments in matters that relate to the current and long-term objectives of the funds and should be willing and able to contribute positively to the decision-making process of the funds.

3. Nominees should have a commitment to understand the funds, and the responsibilities of a trustee/director of an investment company and to regularly attend and participate in meetings of the Board and its committees.

4. Nominees should have the ability to understand the sometimes conflicting interests of the various constituencies of the funds, including shareholders and the management company, and to act in the interests of all shareholders.

5. Nominees should not have, nor appear to have, a conflict of interest that would impair their ability to represent the interests of all the shareholders and to fulfill the responsibilities of a director/trustee.

Application of Criteria to Existing Trustees

The renomination of existing Trustees should not be viewed as automatic, but should be based on continuing qualification under the criteria set forth above. In addition, the Governance Committee shall consider the existing Trustee's performance on the Board and any committee.

Review of Shareholder Nominations

Any shareholder nomination must be submitted in compliance with all of the pertinent provisions of Rule 14a-8 under the Securities Exchange Act of 1934 in order to be considered by the Governance Committee. In evaluating a nominee recommended by a shareholder, the Governance Committee, in addition to the criteria discussed above, may consider the objectives of the shareholder in submitting that nomination and whether such objectives are consistent with the interests of all shareholders. If the Board determines to include a shareholder's candidate among the slate of its designated nominees, the candidate's name will be placed on the funds' proxy card. If the Board determines not to include such candidate among its designated nominees, and the shareholder has satisfied the requirements of Rule 14a-8, the shareholder's candidate will be treated as a nominee of the shareholder who originally nominated the candidate. In that case, the candidate will not be named on the proxy card distributed with the funds' proxy statement.

As long as an existing Independent Trustee continues, in the opinion of the Governance Committee, to satisfy the criteria listed above, the Committee generally would favor the re-nomination of an existing Trustee rather than a new candidate. Consequently, while the Governance Committee will consider nominees recommended by shareholders to serve as trustees, the Governance Committee may only act upon such recommendations if there is a vacancy on the Board, or the Governance Committee determines that the selection of a new or additional Trustee is in the best interests of the fund. In the event that a vacancy arises or a change in Board membership is determined to be advisable, the Governance Committee will, in addition to any shareholder recommendations, consider candidates identified by other means, including candidates proposed by members of the Governance Committee. The Governance Committee may retain a consultant to assist the Committee in a search for a qualified candidate.