EX-99.77Q1 OTHR EXHB 4 d_exhibita77q1.htm EXPENSE LIMITATION LETTER AGREEMENT AND VOLUNTARY EXPENSE LIMITATION NOTICE

 

 

John Hancock Advisers, LLC
601 Congress Street

Boston, MA 02210

June 5, 2012

To the Trustees of

John Hancock Funds

601 Congress Street

Boston, MA 02210

Re: Expense Limitation Letter Agreement and Voluntary Expense Limitation Notice

 

With reference to each of the Advisory Agreements entered into by and between John Hancock Advisers, LLC (the “Adviser”) and each of the trusts listed in Appendix A to this letter (each, a “Trust” and collectively, the “Trusts”), on behalf of each of their respective series listed in Appendix A (each, a “Fund” and collectively, the “Funds”), we hereby notify you as follows:

 

1. The Adviser agrees to contractually waive its advisory fees and, to the extent necessary, reimburse other expenses of each Fund as set forth in Appendix B, Appendix C and Appendix D hereto.

 

2. The Adviser agrees to voluntarily waive its advisory fees and, to the extent necessary, reimburse other expenses of each Fund as set forth in Appendix E and Appendix F hereto.

 

3. We understand and intend that the Trusts will rely on this undertaking in overseeing the preparation and filing of Post-effective Amendments to the Registration Statement on Form N-1A for the Trusts and the Funds with the Securities and Exchange Commission, in accruing each Fund’s expenses for purposes of calculating its net and gross asset value per share, and for other purposes permitted under Form N-1A and/or the Investment Company Act of 1940, as amended, and we expressly permit the Trusts so to rely.

 

Very truly yours,

 

 

JOHN HANCOCK ADVISERS, LLC

 

 

By: /s/Jeffrey H. Long

Jeffrey H. Long

Chief Financial Officer

 

Agreed and Accepted
on behalf of each applicable Trust listed in Appendix A

 

 

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

  

A copy of the document establishing each Trust is filed with the Secretary of The Commonwealth of Massachusetts. This Agreement is executed by the officer in his capacity as such and not as an individual and is not binding upon any of the Trustees, officers or shareholders of the Trusts individually but only upon the assets of the Funds.

 
 

APPENDIX A

TRUSTS and Funds

JOHN HANCOCK BOND TRUST

Government Income Fund

High Yield Fund

Investment Grade Bond Fund

JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND

California Tax-Free Income Fund

JOHN HANCOCK CAPITAL SERIES

Classic Value Fund

U.S. Global Leaders Growth Fund

JOHN HANCOCK CURRENT INTEREST

Money Market Fund

JOHN HANCOCK INVESTMENT TRUST

Balanced Fund

Global Opportunities Fund

Large Cap Equity Fund

Small Cap Intrinsic Value Fund

Sovereign Investors Fund

JOHN HANCOCK INVESTMENT TRUST II

Financial Industries Fund

Regional Bank Fund

Small Cap Equity Fund

JOHN HANCOCK INVESTMENT TRUST III

Greater China Opportunities Fund

JOHN HANCOCK MUNICIPAL SECURITIES TRUST

High Yield Municipal Bond Fund

Tax-Free Bond Fund

JOHN HANCOCK SERIES TRUST

Mid Cap Equity Fund

JOHN HANCOCK SOVEREIGN BOND FUND

Bond Fund

JOHN HANCOCK STRATEGIC SERIES

Strategic Income Fund

JOHN HANCOCK TAX-EXEMPT SERIES FUND

Massachusetts Tax-Free Income Fund

New York Tax-Free Income Fund

 
 

APPENDIX B

Fund Level Contractual Expense Limitations

For purposes of the first part of this Appendix:

 

“Expenses” means all the expenses of a Fund excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest expense; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fees and expenses paid indirectly; (vi) short dividend expense; (vii) Rule 12b-1 fees; (viii) transfer agency fees; and (ix) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Trust.

 

“Expense Limit” means the percentage of a Fund’s average annual net assets (on an annualized basis) set forth below.

The Adviser agrees to waive advisory fees and, to the extent necessary, reimburse other expenses of the Fund, in an amount equal to the amount by which the Expenses of such Fund exceed the Expense Limit for such Fund set forth in the table below.

The Expense Limit for each of the Funds indicated below for the purposes of this Appendix shall be as follows:

 

Fund


Annual Expense Limit
Expiration Date of Expense Limit
None    

 

 

 

 
 

APPENDIX C

Class Level Contractual Expense Limitations

For purposes of this Appendix:

 

“Expenses” means all the expenses of a class of shares of the Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest expense; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fees and expenses paid indirectly; (vi) short dividend expense; and (vii) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund.

 

“Expense Limit” means the percentage of average annual net assets (on an annualized basis) attributable to a class of shares of the Fund set forth below.

The Adviser agrees to waive advisory fees and, to the extent necessary, reimburse expenses or make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below.

The Expense Limit for the classes of shares of the Fund indicated below for the purposes of this Appendix shall be as follows:

 

  Classes                   Expiration Date of Expense Limit
Fund A B C I R1 R2 R3 R4 R5 R6  
Balanced Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.74% 2/28/2013
Classic Value Fund 1.33% 2.08% 2.08% 1.02% 1.68% 1.43% 1.58% 1.28% 0.98% 0.92% 2/28/2013
Global Opportunities Fund N/A N/A N/A N/A N/A 1.61% N/A N/A N/A 1.10% 2/28/2013
Greater China Opportunities Fund N/A N/A N/A 1.31% N/A N/A N/A N/A N/A N/A 2/28/2013
Large Cap Equity Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.75% 2/28/2013
Mid Cap Equity Fund 1.45% 2.15% 2.15% 1.09% N/A N/A N/A N/A N/A N/A 2/28/2013
Small Cap Equity Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.89% 2/28/2013
Small Cap Intrinsic Value Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.10% 2/28/2013
Sovereign Investors Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.75% 2/28/2013
U.S. Global Leaders Growth Fund 1.30% 2.05% 2.05% 0.99% N/A 1.40% N/A N/A N/A 0.85% 2/28/2013
Bond Fund See below See below See below See below N/A See below N/A N/A N/A 0.57%1 and see below 9/30/20131
Government Income Fund 0.98% 1.84% 1.84% N/A N/A N/A N/A N/A N/A N/A

9/30/2013 for Class A

9/30/2012 for Class B and Class C

High Yield Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.65% 9/30/20132
Investment Grade Bond Fund 0.98% 1.73% 1.73% 0.67% N/A N/A N/A N/A N/A N/A 9/30/20133
Strategic Income Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.48% 9/30/2012

 

For John Hancock Bond Fund, the Adviser and its affiliates agree to waive a portion of their fees and/or reimburse certain Expenses in order to reduce the total annual fund operating expenses for Class A, Class B, Class C, Class I, Class R2 and Class R6 shares by 0.05% of the Fund’s average daily net assets. These fee waivers and/or expense reimbursements expire on September 30, 2013, unless renewed by mutual agreement of the Fund and the Adviser based upon a determination that this is appropriate under the circumstances at the time.*

* At the March 4-7, 2012 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to September 30, 2013) of the fee waiver and/or expense reimbursement arrangement for Class A, Class B, Class C, Class I and Class R6 shares of Bond Fund, effective upon the current expiration date of September 30, 2012. With respect to Class R2 shares, the Adviser notified the Board of, and the Board ratified, the fee waiver and/or expense reimbursement arrangement for Class R2 shares of Bond Fund with an expiration date of September 30, 2013, effective as of March 1, 2012.

 
 

APPENDIX D

Fund Level Contractual Investment Management Fee Waivers

The Adviser agrees to limit John Hancock Money Market Fund’s management fee to a maximum annual rate of 0.40% of the Fund’s average daily net assets. The limitation will continue until at least July 31, 2013.*

* At the March 4-7, 2012 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to July 31, 2013) of the management fee limitation, effective upon the current expiration date of July 31, 2012.

 

The Adviser agrees to limit John Hancock Government Income Fund’s management fee to a maximum annual rate of 0.53% of the Fund’s average daily net assets. The limitation will continue until at least September 30, 2013.**

** At the March 4-7, 2012 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board ratified, the extension of the expiration date (to September 30, 2013) and the decrease of the management fee limitation (from 0.55% to 0.53%), effective as of February 13, 2012.

 

 

 

 

 
 

APPENDIX E

 

Fund Level Voluntary Limit on Total Operating Expenses

For purposes of this Appendix:

 

“Expenses” means all the expenses of a Fund excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fee expenses paid indirectly; (vi) short dividend expense; (vii) Rule 12b-1 fees; (viii) transfer agency fees; and (ix) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Trust.

 

“Expense Limit” means the percentage of a Fund’s average annual net assets (on an annualized basis) set forth below.

The Adviser agrees to waive advisory fees and, to the extent necessary, reimburse other expenses of the Fund, in an amount equal to the amount by which the Expenses of such Fund exceed the Expense Limit for such Fund set forth in the table below.

The Expense Limit for each of the Funds indicated below for the purposes of this Appendix shall be as follows:

 

Fund


Annual Expense Limit
Expiration Date of Expense Limit*
None    

* These fee waivers and/or expense reimbursements are voluntary and may be amended or terminated at any time by the Adviser on notice to the Trust.

 

 

 

 

 

 
 

APPENDIX F

 

Class Level Voluntary Limit on Total Operating Expenses

For John Hancock Money Market Fund, the Adviser and its affiliates may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (Rule 12b-1) fees) and/or reimburse certain expenses to the extent necessary to assist the Fund in attempting to avoid a negative yield. These fee waivers and/or expense reimbursements are voluntary and may be amended or terminated at any time by the Adviser on notice to the Trust.

 


1At the June 3-5, 2012 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to September 30, 2013) of the fee waiver and/or expense reimbursement arrangement of Class R6 shares of Bond Fund, effective upon the current expiration date of September 30, 2012.

2 At the June 3-5, 2012 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to September 30, 2013) of the fee waiver and/or expense reimbursement arrangement of Class R6 shares of High Yield Fund, effective upon the current expiration date of September 30, 2012.

3 At the June 3-5, 2012 meeting of the Board of Trustees of the Trusts, the Adviser notified the Board of, and the Board approved, the extension of the expiration date (to September 30, 2013) of the fee waiver and/or expense reimbursement arrangements of Investment Grade Bond Fund, effective upon the current expiration date of September 30, 2012.