-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CexA5O5UvZe/vCHTyh7XuF/ggqLDCQAtHJLvrzvv4M/Cw6QYBJb9eOC8cRbTgEM8 clsnQoaa4596HYeokTU/Zw== 0000928816-10-000147.txt : 20100203 0000928816-10-000147.hdr.sgml : 20100203 20100203114122 ACCESSION NUMBER: 0000928816-10-000147 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 20091130 FILED AS OF DATE: 20100203 DATE AS OF CHANGE: 20100203 EFFECTIVENESS DATE: 20100203 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANCOCK JOHN TAX EXEMPT SERIES FUND CENTRAL INDEX KEY: 0000811921 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05079 FILM NUMBER: 10569370 BUSINESS ADDRESS: STREET 1: 601 CONGRESS STREET CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 617-663-3000 MAIL ADDRESS: STREET 1: C/O JOHN HANCOCK FUNDS STREET 2: 601 CONGRESS STREET CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN TAX EXEMPT SERIES TRUST DATE OF NAME CHANGE: 19901023 0000811921 S000000649 Massachusetts Tax-Free Income Fund C000001868 Class A JHMAX C000001869 Class B JHMBX C000001870 Class C JMACX 0000811921 S000000650 New York Tax-Free Income Fund C000001871 Class A JHNYX C000001872 Class B JNTRX C000001873 Class C JNYCX N-CSRS 1 a_taxexemptseries.htm JOHN HANCOCK TAX-EXEMPT SERIES a_taxexemptseries.htm
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
FORM N-CSR 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED 
 
MANAGEMENT INVESTMENT COMPANIES 
 
Investment Company Act file number 811- 5079 
 
John Hancock Tax-Exempt Series Fund 
(Exact name of registrant as specified in charter) 
 
601 Congress Street, Boston, Massachusetts 02210 
(Address of principal executive offices) (Zip code) 
 
Michael J. Leary 
Treasurer 
 
601 Congress Street 
 
Boston, Massachusetts 02210 
 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: 617-663-4490 
 
Date of fiscal year end:  May 31 
 
 
Date of reporting period:  November 30, 2009 

ITEM 1. REPORT TO SHAREHOLDERS.






A look at performance

For the period ended November 30, 2009         
 
  Average annual returns (%)    Cumulative total returns (%)     

  SEC 30-

  day yield


  (%) as of


  11-30-09
 

  with maximum sales charge (POP)  with maximum sales charge (POP)     


        Six       
Class  1-year  5-year  10-year  months  1-year  5-year  10-year 

A  6.89  2.72  4.52  0.78  6.89  14.37  55.53  3.71 

B  6.18  2.60  4.41  0.19  6.18  13.68  53.99  3.17 

C  10.18  2.94  4.27  4.19  10.18  15.61  51.85  3.18 


Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charges on Class A shares of 4.5% and the applicable contingent deferred sales charge (CDSC) on Class B shares and Class C shares. The returns for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective July 15, 2004. The Class B shares’ CDSC declines annually between years 1 to 6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The net expenses equal the gross expenses and are as follows: Class A — 1.13%, Class B — 1.83% and Class C — 1.83%.

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 current to the most recent month end performance data, 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 may pay on fund distributions or on the redemption of fund shares. Please note that a portion of the Fund’s income may be subject to taxes, and on some investors may be subject to the Alternative Minimum Tax (AMT). Also note that capital gains are taxable.

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

6  New York Tax-Free Income Fund | Semiannual report 



Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in John Hancock New York Tax-Free Income Fund Class A shares for the period indicated. For comparison, we’ve shown the same investment in the Barclays Capital Municipal Bond Index.



      With maximum   
Class  Period beginning  Without sales charge  sales charge  Index 

B2  11-30-99  $15,399  $15,399  $17,273 

C2  11-30-99  15,185  15,185  17,273 


Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Fund’s Class B and Class C shares, respectively, as of November 30, 2009. The Class C shares investment with maximum sales charge has been adjusted to reflect the elimination of the front-end sales charge effective July 15, 2004. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

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

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

2 No contingent deferred sales charge applicable.

Semiannual report | New York Tax-Free Income 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 June 1, 2009 with the same investment held until November 30, 2009.

  Account value  Ending value  Expenses paid during 
  on 6-1-09  on 11-30-09  period ended 11-30-091 

Class A  $1,000.00  $1,055.60  $5.82 

Class B  1,000.00  1,051.90  9.46 

Class C  1,000.00  1,051.90  9.41 


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 November 30, 2009, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:



8  New York Tax-Free Income Fund | Semiannual report 



Hypothetical example for comparison purposes

This table allows you to compare your fund’s ongoing operating expenses with those of any other fund. It provides an example of the Fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not your fund’s actual return). It assumes an account value of $1,000.00 on June 1, 2009, with the same investment held until November 30, 2009. 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 6-1-09  on 11-30-09  period ended 11-30-091 

Class A  $1,000.00  $1,019.40  $5.72 

Class B  1,000.00  1,015.80  9.30 

Class C  1,000.00  1,015.90  9.25 


Remember, these examples do not include any transaction costs, 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 1.13%, 1.84% and 1.83% for Class A, Class B and Class C shares, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

Semiannual report | New York Tax-Free Income Fund  9 



Portfolio summary

Top 10 Holdings1       

Metropolitan Transportation Authority, 11-15-34, 5.000%  4.5% 

Puerto Rico Aqueduct & Sewer Authority, 07-01-11, 10.021%  3.8% 

New York State Dormitory Authority, 05-15-19, 5.500%  3.7% 

New York City Industrial Development Agency 03-01-15, 6.250%  3.2% 

Oneida County Industrial Development Agency, 07-01-29, Zero  3.1% 

Triborough Bridge & Tunnel Authority, 01-01-21, 6.125%  3.1% 

Long Island Power Authority, 04-01-39, 5.750%    2.6% 

City of New York, 12-01-17, 5.250%      2.5% 

Puerto Rico Sales Tax Financing Authority, 08-01-32, Zero  2.4% 

New York Local Assistance Corp., 05-01-23, 5.375%  2.3% 

 
Sector Composition2,3       

General Obligation Bonds  3%  Development  4% 


Revenue Bonds    Power  4% 


Education  20%  Facilities  4% 


Other Revenue  18%  Tobacco  3% 


Water & Sewer  11%  Health Care Services  2% 


Health Care  9%  Industrial Development  2% 


Utilities  7%  Pollution  1% 


Transportation  5%  Short-Term Investments & Other  2% 


Airport  5%     

 
Quality Composition2       

AAA  31%  BB  2% 


AA  25%  B  1% 


A  19%  Other  2% 


BBB  20%     

 


1 As a percentage of net assets on November 30, 2009. Excludes cash and cash equivalents.

2 As a percentage of net assets on November 30, 2009.

3 Investments focused in one sector may fluctuate more widely than investments across multiple sectors. Because the Fund may focus on particular sectors, its performance may depend on the performance of those sectors.

10  New York Tax-Free Income Fund | Semiannual report 



Fund’s investments

As of 11-30-09 (unaudited)

    Maturity     
  Rate  date  Par value  Value 
Municipal Bonds 97.38%        $61,125,654 

(Cost $58,613,384)         
 
Guam 0.81%        508,750 

Guam Government,         
 Section 30, Series A  5.750%  12-01-34  $500,000  508,750 
 
New York 83.47%        52,395,251 

Albany Parking Authority,         
 Prerefunded, Series A  5.625  07-15-25  385,000  420,782 
 Unrefunded, Series A  5.625  07-15-25  365,000  370,522 

Chautauqua Asset Securitization Corp.  6.750  07-01-40  1,000,000  1,000,390 

City of New York,         
 General Obligation, Series B  5.250  12-01-17  1,500,000  1,597,680 
 General Obligation, Series E-1  6.250  10-15-28  500,000  581,295 

Herkimer County Industrial         
 Development Agency,         
 Folts Adult Home Inc., Series A  5.500  03-20-40  985,000  1,048,316 

Long Island Power Authority,         
 Series A  6.000  05-01-33  1,000,000  1,118,980 
 Series A  5.750  04-01-39  1,500,000  1,601,220 

Metropolitan Transportation Authority,         
 Series A  5.250  11-15-28  1,000,000  1,083,140 
 Series B  5.000  11-15-34  2,750,000  2,823,755 

Monroe Newpower Corp.  5.100  01-01-16  1,000,000  991,400 

Nassau County Industrial Development Agency,         
 North Shore Health Systems, Series A  6.250  11-01-21  275,000  282,827 

New York City Industrial         
 Development Agency,         
 Airis JFK I LLC. Project, Series A, AMT  5.500  07-01-28  1,000,000  710,500 
 Brooklyn Navy Yard Cogeneration Partners, AMT  5.650  10-01-28  1,000,000  762,820 
 Lycee Francais De NY Project, Series A (D)  5.375  06-01-23  1,000,000  1,027,430 
 Polytechnic Projects University  6.125  11-01-30  1,000,000  1,063,610 
 Polytechnic Projects University (D)  5.250  11-01-27  1,000,000  906,050 
 Terminal One Group Association Project (P), AMT  5.500  01-01-21  1,000,000  1,014,910 
 World Trade Center Project, Series A  6.250  03-01-15  2,000,000  1,977,620 

New York City Municipal Water         
 Finance Authority,         
 Fiscal 2009, Series A (V)  5.750  06-15-40  1,000,000  1,096,800 
 Second Gen. Resolution, Series GG-1  5.000  06-15-39  1,000,000  1,019,750 
 Series C  Zero  06-15-33  300,000  300,000 
 Series D  Zero  06-15-20  2,000,000  1,346,860 
 Series FF-2  5.000  06-15-40  1,000,000  1,015,220 
 Unrefunded, Series B  6.000  06-15-33  460,000  477,061 

See notes to financial statements

Semiannual report | New York Tax-Free Income Fund  11 



    Maturity     
  Rate  date  Par value  Value 
New York (continued)         

New York City Transitional         
 Finance Authority,         
 Series A (Zero step up to 7-1-10 then 6.05%)  Zero  11-01-29  $1,000,000  $969,190 
 Series B   6.000%  11-15-29  1,000,000  1,036,210 
 Series S-4  5.500  01-15-39  1,000,000  1,060,280 

New York Local Assistance Corp.,         
 Series C  5.500  04-01-17  1,225,000  1,436,374 

New York State Dormitory Authority,         
 City University 4th, Series A  5.250  07-01-31  130,000  139,786 
 Long Island Jewish Medical Center  5.375  05-01-23  1,000,000  1,147,320 
 Miriam Osborn Memorial Home Association,         
 Series B (D)  6.875  07-01-25  750,000  763,478 
 Mount Sinai School of Medicine  5.125  07-01-39  1,000,000  982,760 
 Orange Regional Medical Center  6.125  12-01-29  750,000  685,935 
 St. Luke Roosevelt Hospital, Series B  Zero  08-15-40  3,000,000  438,270 
 State University (D)  5.250  05-15-15  1,000,000  1,095,790 
 State University Dormitory, Series A  6.000  07-01-30  1,000,000  1,043,820 
 State University Facilities, Series A  5.500  05-15-19  2,000,000  2,289,520 
 University of Rochester, Series A         
 (Zero step up to 11-1-11 then 14.00%) (D)  Zero  07-01-25  1,000,000  1,005,870 

New York State Environmental         
 Facilities Corp.,         
 Series A  5.000  06-15-34  1,000,000  1,029,030 
 Unrefunded, Series E  6.875  06-15-10  10,000  10,054 

Oneida County Industrial Development Agency,         
 Hamilton College, Series A (D)  Zero  07-01-29  5,330,000  1,969,595 

Onondaga County Industrial         
 Development Agency,         
 Aero Syracuse LLC., AMT  6.125  01-01-32  1,000,000  800,110 

Orange County Industrial Development Agency,         
 Arden Hill Care Center, Series C  7.000  08-01-31  500,000  440,490 

Port Authority of New York & New Jersey,         
 KICA Partners, AMT  6.750  10-01-19  1,500,000  1,253,265 

Suffolk County Industrial Development Agency,         
 Huntington Hospital Project, Series B  6.000  11-01-22  1,000,000  1,023,260 

Triborough Bridge & Tunnel Authority,         
 Series Y (D)  6.125  01-01-21  1,500,000  1,909,950 

Tsasc, Inc., Tobacco Settlement,         
 Series 1  5.500  07-15-24  700,000  770,028 

Upper Mohawk Valley Regional Water Finance         
 Authority, (D)  Zero  04-01-22  2,230,000  1,277,099 

Westchester County Healthcare Corp.,         
 Series A  6.000  11-01-30  1,150,000  1,110,129 

Yonkers Industrial Development Agency,         
 Yonkers, Inc., Series A  6.625  02-01-26  1,000,000  1,068,700 
 
Puerto Rico 9.76%        6,126,973 

Puerto Rico Aqueduct & Sewer Authority,         
 (D) (P)  10.021  07-01-11  2,000,000  2,347,760 

Puerto Rico Public Building Authority,         
 Series A (D)  6.250  07-01-12  1,110,000  1,188,355 

Puerto Rico Public Finance Corp.,         
 Prerefunded, Series E  5.500  08-01-29  1,005,000  1,103,078 

Puerto Rico Sales Tax Financing Authority,         
 Capital Appreciation, Series A  Zero  08-01-32  2,000,000  1,487,780 

See notes to financial statements

12  New York Tax-Free Income Fund | Semiannual report 



    Maturity     
  Rate  date  Par value  Value 
Virgin Islands 3.34%        $2,094,680 

Virgin Islands Public Finance Authority,         
 Series A  6.750%  10-01-37  $1,000,000  1,046,760 
 Series A  6.500  10-01-24  535,000  568,010 
 Sr Lien/Cap Projs, Series A–1  5.000  10-01-29  500,000  479,910 
 
      Par value  Value 
Short-Term Investments 1.38%        $864,000 

(Cost $864,000)         
 
Repurchase Agreement 1.38%        864,000 

Repurchase Agreement with State Street Corp. dated 11-30-09       
 at 0.05% to be repurchased at $864,001 on 12-01-09,       
 collateralized by $885,000 U.S. Treasury Bills, zero coupon       
 due 05-13-10 (valued at $884,558)      $864,000  864,000 
 
Total investments (Cost $59,477,384)98.76%      $61,989,654 

Other assets and liabilities, net 1.24%        $781,140 

Total net assets 100.00%        $62,770,794 


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

AMT Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

(D) Bond is insured by one of these companies:

Insurance coverage  As a % of total investments 

Ambac Financial Group, Inc.    4.35% 
Assured Guarantee Corp.    3.98% 
National Public Finance Guarantee Insurance Corp.  10.35% 

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

(V) Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rates as of November 30, 2009.

† At November 30, 2009, the aggregate cost of investment securities for federal income tax purposes was $59,385,257. Net unrealized appreciation aggregated $2,604,397, of which $3,902,117 related to appreciated investment securities and $1,297,720 related to depreciated investment securities.

See notes to financial statements

Semiannual report | New York Tax-Free Income Fund  13 



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

Financial statements

Statement of assets and liabilities 11-30-09 (unaudited)

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

Assets   

Investments, at value (Cost $59,477,384)  $61,989,654 
Cash  732 
Receivable for fund shares sold  66,105 
Interest receivable  816,767 
Other receivables and prepaid assets  4,334 
 
Total assets  62,877,592 
 
Liabilities   

Distributions payable  57,733 
Payable to affiliates   
 Accounting and legal services fees  689 
 Transfer agent fees  3,436 
 Distribution and service fees  5,543 
 Trustees’ fees  765 
Other liabilities and accrued expenses  38,632 
 
Total liabilities  106,798 
 
Net assets   
Capital paid-in  $60,609,366 
Undistributed net investment income  25,786 
Accumulated net realized loss on investments  (376,628) 
Net unrealized appreciation on investments  2,512,270 
 
Net assets  $62,770,794 
 
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 ($52,454,042 ÷ 4,375,371 shares)  $11.99 
Class B ($3,807,656 ÷ 317,583 shares)1  $11.99 
Class C ($6,509,096 ÷ 542,879 shares)1  $11.99 
 
Maximum offering price per share   

Class A (net asset value per share ÷ 95.5%)2  $12.55 

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

2 On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced.

See notes to financial statements

14  New York Tax-Free Income Fund | Semiannual report 



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

Statement of operations For the period ended 11-30-09 (unaudited)

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   

 
Interest  $1,631,049 
 
Total investment income  1,631,049 
 
Expenses   

Investment management fees (Note 4)  152,049 
Distribution and service fees (Note 4)  128,418 
Accounting and legal services fees (Note 4)  7,080 
Transfer agent fees (Note 4)  25,071 
Trustees’ fees (Note 5)  1,725 
State registration fees  2,576 
Printing and postage fees  6,131 
Professional fees  38,659 
Custodian fees  9,381 
Registration and filing fees  7,885 
Other  2,064 
 
Total expenses  381,039 
Less expense reductions (Note 4)  (1,185) 
 
Net expenses  379,854 
 
Net investment income  1,251,195 
 
Realized and unrealized gain   

Net realized gain on investments  57,515 
Change in net unrealized appreciation (depreciation) of investments  1,925,193 
 
Net realized and unrealized gain  1,982,708 
 
Increase in net assets from operations  $3,233,903 

1 Semiannual period from 6-1-09 to 11-30-09.

See notes to financial statements

Semiannual report | New York Tax-Free Income Fund  15 



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

Statements 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 three 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.

  Period  Period  Year 
  ended  ended  ended 
  11-30-091  5-31-092  8-31-08 
Increase (decrease) in net assets       

From operations       
Net investment income  $1,251,195  $1,745,859  $2,224,738 
Net realized gain (loss)  57,515  148,292  (43,829) 
Change in net unrealized appreciation (depreciation)  1,925,193  (1,746,498)  (277,248) 
 
Increase in net assets resulting from operations  3,233,903  147,653  1,903,661 
 
Distributions to shareholders       
From net investment income       
Class A  (1,050,310)  (1,423,219)  (1,769,992) 
Class B  (78,572)  (182,377)  (324,308) 
Class C  (110,341)  (121,788)  (110,644) 
From net realized gain       
 
Total distributions  (1,239,223)  (1,727,384)  (2,204,944) 
 
From Fund share transactions (Note 6)  3,265,990  4,184,575  725,279 
 
Total increase  5,260,670  2,604,844  423,996 
Net assets       

Beginning of period  57,510,124  54,905,280  54,481,284 
 
End of period  $62,770,794  $57,510,124  $54,905,280 
 
Undistributed net investment income  $25,786  $13,814  $19,069 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

See notes to financial statements

16  New York Tax-Free Income Fund | Semiannual report 



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  11-30-091 5-31-092  8-31-08  8-31-07  8-31-06  8-31-05  8-31-04 
    
Per share operating performance               

Net asset value, beginning of period  $11.60  $11.96  $12.03  $12.40  $12.61  $12.46  $12.10 
Net investment income3  0.25     0.38  0.51  0.52  0.52  0.52  0.54 
Net realized and unrealized gain (loss)               
 on investments  0.39   (0.36)  (0.07)  (0.37)  (0.21)  0.15  0.36 
Total from investment operations  0.64     0.02  0.44  0.15  0.31  0.67  0.90 
Less distributions               
From net investment income  (0.25)   (0.38)  (0.51)  (0.52)  (0.52)  (0.52)  (0.54) 
Net asset value, end of period  $11.99  $11.60  $11.96  $12.03  $12.40  $12.61  $12.46 
Total return (%)4  5.565     0.285  3.73  1.18  2.54  5.50  7.546 
   
Ratios and supplemental data               

Net assets, end of period (in millions)  $52     $46  $44  $40  $43  $44  $44 
Ratios (as a percentage of average net               
 assets):               
 Expenses before reductions  1.137     1.197,8  1.04  1.03  1.03  1.06  1.02 
 Expenses net of fee waivers  1.137     1.197,8  1.04  1.03  1.03  1.06  1.01 
 Expenses net of fee waivers               
    and credits  1.137     1.197,8  1.04  1.03  1.03  1.06  1.01 
 Net investment income  4.267     4.507  4.28  4.22  4.20  4.18  4.35 
Portfolio turnover (%)  6  22  25  17  32  25  43 
 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

3 Based on the average daily shares outstanding.

4 Assumes dividend reinvestment (if applicable).

5 Not annualized.

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

7 Annualized.

8 Includes the impact of proxy expenses, which amounted to 0.04% of average net assets.

See notes to financial statements

Semiannual report | New York Tax-Free Income Fund  17 



CLASS B SHARES Period ended  11-30-091  5-31-092  8-31-08  8-31-07  8-31-06  8-31-05  8-31-04 
   
Per share operating performance               

Net asset value, beginning               
 of period  $11.60  $11.96  $12.03  $12.40  $12.61  $12.46  $12.10 
Net investment income3  0.21  0.32  0.43  0.43  0.43  0.43  0.45 
Net realized and unrealized gain               
 (loss) on investments  0.39  (0.36)  (0.07)  (0.37)  (0.21)  0.15  0.36 
Total from investment operations  0.60  (0.04)  0.36  0.06  0.22  0.58  0.81 
Less distributions               
From net investment income  (0.21)  (0.32)  (0.43)  (0.43)  (0.43)  (0.43)  (0.45) 
Net asset value, end of period  $11.99  $11.60  $11.96  $12.03  $12.40  $12.61  $12.46 
Total return (%)4  5.195  (0.24)5  3.01  0.48  1.83  4.77  6.806 
   
Ratios and supplemental data               

Net assets, end of period (in millions)  $4  $6  $8  $11  $14  $17  $20 
Ratios (as a percentage of average               
 net assets):               
 Expenses before reductions  1.847  1.897,8  1.74  1.73  1.73  1.76  1.72 
 Expenses net of fee waivers  1.847  1.897,8  1.74  1.73  1.73  1.76  1.71 
 Expenses net of fee waivers               
    and credits  1.847  1.897,8  1.74  1.73  1.73  1.76  1.71 
 Net investment income  3.577  3.807  3.57  3.52  3.50  3.48  3.65 
Portfolio turnover (%)  6  22  25  17  32  25  43 
   

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

3 Based on the average daily shares outstanding.

4 Assumes dividend reinvestment (if applicable).

5 Not annualized.

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

7 Annualized.

8 Includes the impact of proxy expenses, which amounted to 0.04% of average net assets.

 

CLASS C SHARES Period ended  11-30-091  5-31-092  8-31-08  8-31-07  8-31-06  8-31-05  8-31-04 
   
Per share operating performance               

Net asset value, beginning               
 of period  $11.60  $11.96  $12.03  $12.40  $12.61  $12.46  $12.10 
Net investment income3  0.21  0.32  0.43  0.43  0.43  0.43  0.45 
Net realized and unrealized gain               
 (loss) on investments  0.39  (0.36)  (0.07)  (0.37)  (0.21)  0.15  0.36 
Total from investment operations  0.60  (0.04)  0.36  0.06  0.22  0.58  0.81 
Less distributions               
From net investment income  (0.21)  (0.32)  (0.43)  (0.43)  (0.43)  (0.43)  (0.45) 
Net asset value, end of period  $11.99  $11.60  $11.96  $12.03  $12.40  $12.61  $12.46 
Total return (%)4  5.195  (0.24)5  3.01  0.48  1.83  4.77  6.806 
   
Ratios and supplemental data               

Net assets, end of period               
 (in millions)  $7  $6  $3  $4  $3  $5  $5 
Ratios (as a percentage of average               
 net assets):               
 Expenses before reductions  1.837  1.897,8  1.74  1.73  1.73  1.76  1.72 
 Expenses net of fee waivers  1.837  1.897,8  1.74  1.73  1.73  1.76  1.71 
 Expenses net of fee waivers               
    and credits  1.837  1.897,8  1.74  1.73  1.73  1.76  1.71 
 Net investment income  3.547  3.797  3.57  3.51  3.50  3.48  3.65 
Portfolio turnover (%)  6  22  25  17  32  25  43 
 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

3 Based on the average daily shares outstanding.

4 Assumes dividend reinvestment (if applicable).

5 Not annualized.

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

7 Annualized.

8 Includes the impact of proxy expenses, which amounted to 0.04% of average net assets.

See notes to financial statements

18  New York Tax-Free Income Fund | Semiannual report 



Notes to financial statements
(unaudited)

Note 1
Organization

John Hancock New York Tax-Free Income Fund (the Fund) is a non-diversified series of John Hancock Tax-Exempt Series Fund (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the Fund is to seek a high level of current income, consistent with preservation of capital, that is exempt from federal, New York State and New York City personal income taxes.

John Hancock Advisers, LLC (the Adviser) serves as investment adviser for the Fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Fund. The Adviser and the Distributor are indirect wholly owned subsidiaries of Manulife Financial Corporation (MFC).

The Trustees have authorized the issuance of multiple classes of shares of the Fund, designated as Class A, Class B and Class C shares. The shares of each class represent an interest in the same portfolio of investments of the Fund and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Class B shares will convert to Class A shares eight years after purchase.

Note 2
Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, January 25, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security valuation

Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied quotes and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Debt obligations, where there are no prices available from an independent pricing service, are valued based on bid qu otations or evaluated prices, as applicable, obtained from broker-dealers or fair valued as described below. Certain short-term debt investments are valued at amortized cost.

Other assets and securities where market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s Pricing Committee in accordance with procedures adopted by the Board of Trustees.

Fair value measurements

The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

Semiannual report | New York Tax-Free Income Fund  19 



Level 1 – Exchange-traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants and rights.

Level 2 – Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities.

Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Fund’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At November 30, 2009, total investments for the Fund are Level 2 under the hierarchy discussed above.

Security transactions and related
investment income

Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. Discounts/premiums are accreted/amortized for financial reporting purposes. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful. The Fund uses the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.

Repurchase agreements

The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is generally at least 102% of the repurchase amount. The Fund will take receipt of all securities underlying the repurchase agreements it has entered into until such agreements expire. If the seller defaults, the Fund would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. The Fund may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser.

Line of credit

The Fund and other affiliated funds have entered into an agreement which enables them to participate in a $150 million unsecured committed line of credit with the Fund’s custodian. The Fund is permitted to have bank borrowings for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.08% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit, is charged to each participating fund on a prorated basis based on average net assets. For the six-months ended November 30, 2009, there were no borrowings under the line of credit by the Fund.

20  New York Tax-Free Income Fund | Semiannual report 



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

Expenses

The majority of expenses are directly identifiable to an individual fund. Fund expenses that are not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations

Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the appropriate net asset value of the respective classes. Distribution and service fees, if any, and transfer agent fees, for all classes are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rate(s) applicable to each class.

Federal income taxes

The Fund intends to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

For federal income tax purposes, the Fund has a $520,527 capital loss carryforward available, to the extent provided by regulations, to offset future net realized capital gains. To the extent that such carryforward is used by the Fund, it will reduce the amount of capital gain distribution to be paid. The loss carryforward expires as follows: May 31, 2010 — $104,542, May 31, 2011 — $414,533 and May 31, 2012 — $1,452.

As of May 31, 2009, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund’s federal tax return is subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains

The Fund records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are paid annually. During the nine-month period ended May 31, 2009, the tax character of distributions paid was as follows: ordinary income $283 and tax exempt income of $1,727,101. During the year ended August 31, 2008, the tax character of distributions paid was as follows: ordinary income $3,533 and tax exempt income of $2,201,411. Distributions paid by the Fund with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class.

Such distributions on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Material distributions in excess of tax basis earnings and profits, if any, are reported in the Fund’s financial statements as a return of capital.

Note 3
Guarantees and indemnifications

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

Semiannual report | New York Tax-Free Income Fund  21 



Note 4
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, on an annual basis, to the sum of: (a) 0.50% of the first $250,000,000 of the Fund’s average daily net asset value, (b) 0.45% of the next $250,000,000, (c) 0.425% of the next $500,000,000, (d) 0.40% of the next $250,000,000 and (e) 0.30% of the Fund’s average daily net asset value in excess of $1,250,000,000. The Fund has a subadvisory agreement with MFC Global Investment Management (U.S.), LLC, an indirectly owned subsidiary of MFC and an affiliate of the Adviser. The Fund is not responsible for payment of subadvisory fees. The investment management fees incurred for the six-month period ended November 30, 2009, were equivalent to an annual effective rate of 0.50% of the Fund’s average daily net assets.

Pursuant to the Advisory Agreement, the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Fund, including the preparation of all tax returns, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each class at the time the expense was incurred. The accounting and legal services fees incurred for the six-month period ended November 30, 2009, were equivalent to an annual effective rate of 0.02% of the Fund’s average daily net assets.

The Fund has a Distribution Agreement with the Distributor. The Fund has adopted Distribution Plans with respect to Class A, Class B and Class C shares, pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for the services it provides as distributor of shares of the Fund. Accordingly, Classes A and B shares make daily payments and Class C shares make monthly payments to the Distributor at an annual rate not to exceed 0.30%, 1.00% and 1.00% of average daily net asset value of Class A, Class B and Class C shares, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority. Under the Conduct Rules, curtailment of a portion of the Fund’s Rule 12b-1 payments could occur under certain circumstances.

Class A shares are assessed up-front sales charges. During the six-month period ended November 30, 2009, the Distributor received net up-front sales charges of $99,751 with regard to sales of Class A shares. Of this amount, $12,796 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $86,213 was paid as sales commissions to unrelated broker-dealers and $742 was paid as sales commissions to sales personnel of Signator Investors, Inc. (Signator Investors), a related broker-dealer. Signator Investors is an affiliate of the Adviser.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (CDSC) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used in whole or in part to defray its expenses for providing distribution-related services to the Fund in connection with the sale of Class B and Class C shares. During the six-month period ended November 30, 2009, CDSCs received by the Distributor amounted to $4,490 and $580 for Class B and Class C shares, respectively.

The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. The transfer agent fees are made up of three components:

• The Fund pays a monthly transfer agent fee at an annual rate of 0.01% for all Classes based on each class’s average daily net assets.

22  New York Tax-Free Income Fund | Semiannual report 



• All classes of the Fund pay a monthly fee based on an annual rate of $17.50 per shareholder account.

• In addition, Signature Services is reimbursed for certain out-of-pocket expenses.

Signature Services has voluntarily agreed to waive certain transfer agent expenses. The amount of this waiver for the six-month period ended November 30, 2009 was $163.

Certain investor accounts that maintain small balances are charged an annual small accounts fee by Signature Services. Amounts related to these fees are credited by Signature Services to the Fund and netted against transfer agent expenses. For the year ended November 30, 2009, these fees totaled $1,022.

Class level expenses for the six-month period ended November 30, 2009 were as follows:

  Distribution  Transfer 
Share class  and service fee  agent fees 

Class A  $74,646  $20,566 
Class B  22,284  1,937 
Class C  31,488  2,568 
Total  $128,418  $25,071 

Note 5
Trustees’ fees

The compensation of independent Trustees is borne by the Fund. The independent Trustees may elect to defer, for tax purposes, their receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan. The Fund makes investments into other John Hancock funds, as applicable, to cover its liability for the deferred compensation. Investments to cover the Fund’s deferred compensation liability are recorded on the Fund’s books as an other asset. The deferred compensation liability and the related other asset are always equal and are marked to market on a periodic basis to reflect any income earned by the investments, as well as any unrealized gains or losses. The Deferred Compensation Plan investments had no impact on the operations of the Fund.

Semiannual report | New York Tax-Free Income Fund  23 



Note 6
Fund share transactions

This listing illustrates the number of Fund shares sold, reinvested and repurchased during the six-month period ended November 30, 2009, the nine-month period ended May 31, 2009 and the year ended August 31, 2008, along with the corresponding dollar value.

  Period ended 11-30-091  Period ended 5-31-092  Year ended 8-31-08 
  Shares  Amount  Shares  Amount  Shares  Amount 
Class A shares             

Sold  528,570  $6,203,925  715,444  $8,108,374  725,645  $8,752,039 
Distributions reinvested  61,849  732,212  90,159  1,023,152  108,990  1,307,779 
Repurchased  (198,371)  (2,342,873)  (507,223) (5,717,393)  (504,091) (6,058,408) 
 
Net increase  392,048  $4,593,264  298,380  $3,414,133  330,544  $4,001,410 
 
Class B shares             

Sold  10,588  $125,680  73,092  $828,902  15,748  $188,942 
Distributions reinvested  4,471  52,821  10,581  120,015  19,419  233,281 
Repurchased  (192,944)  (2,256,784)   (242,417) (2,734,169) (257,670)  (3,113,523) 
 
Net decrease 
  (177,885) ($2,078,283) (158,744) ($1,785,252) (222,503)   ($2,691,300) 
Class C shares             

Sold  123,132  $1,448,485  272,750  $3,067,557  110,434  $1,329,149 
Distributions reinvested  4,280  50,734  4,523  50,869  3,752  45,036 
Repurchased  (63,058)  (748,210)  (49,379)  (562,732)  (162,304) (1,959,016) 
 
Net increase (decrease)  64,354  $751,009  227,894  $2,555,694  (48,118)  ($584,831) 
 
Net increase  278,517  $3,265,990  367,530  $4,184,575  59,923  $725,279 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

Note 7
Purchase and sale of securities

Purchases and proceeds from sales or maturities of securities during the six-month period ended November 30, 2009, aggregated $8,201,930 and $5,083,550, respectively. These amounts include purchases and sales of variable rate demand notes, which amounted to $1,900,000 and $1,550,000, respectively. Other short-term securities are excluded from these amounts.

24  New York Tax-Free Income Fund | Semiannual report 



Board Consideration of and
Continuation of Investment
Advisory Agreement and
Subadvisory Agreement

The Investment Company Act of 1940 (the 1940 Act) requires the Board of Trustees (the Board) of John Hancock Tax-Exempt Series Fund (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 existing advisory and subadvisory agreements. At meetings held on May 6–7 and June 8–9, 2009, the Board considered the renewal of:

(i) the investment advisory agreement (the Advisory Agreement) with John Hancock Advisers, LLC (the Adviser) and

(ii) the investment subadvisory agreement (the Subadvisory Agreement) with MFC Global Investment Management (U.S.), LLC (the Subadviser) for the John Hancock New York Tax-Free Income Fund (the Fund).

The Advisory Agreement and the Subadvisory Agreement are collectively referred to as the Advisory Agreements. 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 its Independent Trustees, reviewed a broad range of information requested for this purpose. 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. 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. It considered the background and experience of senior management and investment professionals responsible for managing the Fund. The Board considered the investment philosophy, research and investment decision-making processes of the Adviser and the Subadviser responsible for the daily investment activities of the Fund. The Board considered the Subadviser’s history and experience with the Fund. The Board considered the Adviser’s execution of its oversight responsibilities. The Board further considered the culture of compliance, resources dedicated to compliance, compliance programs, record of compliance with applicable laws and regulation, with the Fund’s investment policies and restrictions and with the applicable Code of Ethics, and the responsibilities of the Adviser’s and Subadviser’s compliance department. In addition, the Board took into account the administrative and other non-advisory services provided to the Fund by the Adviser and its affiliates.

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

Fund performance

The Board considered the performance results for the Fund over various time periods ended December 31, 2008. The Board also considered these results in comparison to the performance of a category of relevant funds (the Category), a peer group of comparable funds (the Peer Group) and a benchmark

Semiannual report | New York Tax-Free Income Fund  25 



index. The funds within each Category and Peer Group were selected by Morningstar Inc. (Morningstar), an independent provider of investment company data. The Board reviewed the methodology used by Morningstar to select the funds in the Category and the Peer Group. The Board also considered updated performance information at its May and June 2009 meetings. Performance and other information may be quite different as of the date of this shareholders report.

The Board noted that the Fund’s performance was higher than the performance of the Category and Peer Group medians for the 1-, 3- and 5-year periods under review. The Board also noted that the Fund’s performance for the 10-year time period was inline with the performance of the Category and Peer Group medians. The Board noted that the Fund’s performance for all periods under review was lower than the performance of its benchmark index, the Barclays Capital Municipal Bond Index, as was the performance of the Category and Peer Group 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 Category and Peer Group. The Board noted that the Fund’s Advisory Agreement Rate was equal to the Category median and inline with the Peer Group median.

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 (Expense Ratio). The Board received and considered information comparing the Expense

Ratio of the Fund to that of the Peer Group and Category medians before the application of fee waivers and reimbursements (Gross Expense Ratio) and after the application of such waivers and reimbursement (Net Expense Ratio). The Board noted that the Fund’s Net Expense Ratio was higher than the Peer Group and Category medians. The Board also noted that the Fund’s Gross Expense Ratio was inline with the Peer Group median and equal to the Category median. The Board noted that, unlike the Fund, several funds in the Peer Group employed fee waivers or reimbursements.

The Adviser also discussed the Morningstar data and rankings, and other relevant information, for the Fund. Based on the above-referenced considerations and other factors, the Board concluded that the Fund’s overall performance and expense results 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 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

26  New York Tax-Free Income Fund | Semiannual report 



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 and Subadviser’s costs are not specific to individual Funds, but rather are incurred across a variety of products and services. To ensure that any economies are reasonably shared with the Fund as its assets increase, the Adviser and the Board agreed to continue the existing breakpoints to the Advisory Agreement Rate.

Information about services to other clients

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

Other benefits to the Adviser

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

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 and Subadviser at least quarterly, which include, among other things, fund performance reports and compliance reports. In addition, the Board meets with senior investment officers at various times throughout the year.

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

Semiannual report | New York Tax-Free Income Fund  27 



More information

Trustees
Patti McGill Peterson, Chairperson
James R. Boyle
James F. Carlin
William H. Cunningham
Deborah C. Jackson*
Charles L. Ladner
Stanley Martin*
Dr. John A. Moore
Steven R. Pruchansky††
Gregory A. Russo
John G. Vrysen

Officers
Keith F. Hartstein
President and Chief Executive Officer

Andrew G. Arnott

Chief Operating Officer

Thomas M. Kinzler

Secretary and Chief Legal Officer

Francis V. Knox, Jr.

Chief Compliance Officer

Charles A. Rizzo

Chief Financial Officer

Michael J. Leary

Treasurer

Investment adviser
John Hancock Advisers, LLC

Subadviser
MFC Global Investment Management (U.S.), LLC

Principal distributor
John Hancock Funds, LLC

Custodian
State Street Bank and Trust Company

Transfer agent
John Hancock Signature Services, Inc.

Legal counsel
K&L Gates LLP

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

* Member of the Audit Committee
†† Member of the Audit Committee effective 9-1-09
† Non-Independent Trustee
‡ Effective 9-1-09

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

The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The Fund’s Form N-Q is available on our Web site and the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-800-SEC-0330 to receive information on the operation of the SEC’s Public Reference Room.

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site www.jhfunds.com or by calling 1-800-225-5291.

You can also contact us:     
1-800-225-5291  Regular mail:  Express mail: 
jhfunds.com  John Hancock Signature Services, Inc.  John Hancock Signature Services, Inc. 
  P.O. Box 55913  Mutual Fund Image Operations 
  Boston, MA 02205-5913  30 Dan Road 
    Canton, MA 02021 

28  New York Tax-Free Income Fund | Semiannual report 




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

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

This report is for the information of the shareholders of John Hancock New York Tax-Free Income Fund.  760SA 11/09 
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.  1/10 






A look at performance

For the period ended November 30, 2009           
 
  Average annual returns (%)  Cumulative total returns (%)    SEC 30-

day yield


(%) as of


11-30-09
 
  with maximum sales charge (POP)  with maximum sales charge (POP)   


        Six       
Class  1-year  5-year  10-year  months  1-year  5-year  10-year 

A  8.16  2.86  4.77  –0.20  8.16  15.15  59.42  3.54 

B  7.50  2.75  4.68  –0.78  7.50  14.50  57.92  3.00 

C  11.50  3.09  4.53  3.13  11.50  16.46  55.72  3.01 


Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charges on Class A shares of 4.5% and the applicable contingent deferred sales charge (CDSC) on Class B shares and Class C shares. The returns for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective July 15, 2004. The Class B shares’ CDSC declines annually between years 1 to 6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The net expenses equal the gross expenses and are as follows: Class A — 1.04%, Class B — 1.74% and, Class C — 1.74%.

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 current to the most recent month end performance data, 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 may pay on fund distributions or on the redemption of fund shares. Please note that a portion of the Fund’s income may be subject to taxes, and some investors may be subject to the Alternative Minimum Tax (AMT). Also note that capital gains are taxable.

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

6  Massachusetts Tax-Free Income Fund | Semiannual report 



Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in the John Hancock Massachusetts Tax-Free Income Fund Class A shares for the period indicated. For comparison, we’ve shown the same investment in the Barclays Capital Municipal Bond Index.



      With maximum   
Class  Period beginning  Without sales charge  sales charge  Index 

B2  11-30-99  $15,792  $15,792  $17,273 

C2  11-30-99  15,572  15,572  17,273 


Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Fund’s Class B and Class C shares, respectively, as of November 30, 2009. The Class C shares investment with maximum sales charge has been adjusted to reflect the elimination of the front-end sales charge effective July 15, 2004. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

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

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

2 No contingent deferred sales charge applicable.

Semiannual report | Massachusetts Tax-Free Income 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 June 1, 2009 with the same investment held until November 30, 2009.

  Account value  Ending value  Expenses paid during 
  on 6-1-09  on 11-30-09  period ended 11-30-091 

Class A  $1,000.00  $1,045.00  $5.23 

Class B  1,000.00  1,042.20  8.75 

Class C  1,000.00  1,041.30  8.75 


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 November 30, 2009, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:


8  Massachusetts Tax-Free Income Fund | Semiannual report 



Hypothetical example for comparison purposes

This table allows you to compare your fund’s ongoing operating expenses with those of any other fund. It provides an example of the Fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not your fund’s actual return). It assumes an account value of $1,000.00 on June 1, 2009, with the same investment held until November 30, 2009. 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 6-1-09  on 11-30-09  period ended 11-30-091 

Class A  $1,000.00  $1,020.00  $5.17 

Class B  1,000.00  1,016.50  8.64 

Class C  1,000.00  1,016.50  8.64 


Remember, these examples do not include any transaction costs, 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 1.02%, 1.71% and 1.71% for Class A, Class B and Class C shares, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

Semiannual report | Massachusetts Tax-Free Income Fund  9 



Portfolio summary

Top 10 Holdings1       

Massachusetts State Turnpike Authority, 01-01-23, 5.125%  4.0% 

Boston Housing Authority, 04-01-27, 5.000%    2.8% 

Holyoke Gas & Electric Department, 12-01-31, 5.000%  2.6% 

Route 3 North Transit Improvement Associates, 06-15-29, 5.375%  2.6% 

Massachusetts Water Resources Authority, 08-01-29, 5.250%  2.3% 

Massachusetts Bay Transportation Authority, 07-01-33, 5.250%  2.2% 

Massachusetts Industrial Finance Agency, 12-01-20, 6.750%  2.2% 

Massachusetts Health & Educational Facilities Authority, 12-15-31, 9.200%  2.0% 

Commonwealth of Massachusetts, 12-01-24, 5.500%  1.9% 

Puerto Rico Aqueduct & Sewer Authority, 07-01-11, 10.021%  1.9% 

 
Sector Composition2,3       

General Obligation Bonds  10%  Housing  10% 


Revenue Bonds    Utilities  6% 


Education  15%  Pollution  3% 


Transportation  14%  Industrial Development  1% 


Water & Sewer  11%  Other Revenue  16% 


Health Care  11%  Short-Term Investments & Other  3% 

 

Quality Composition2       

AAA  32%  BBB  16% 


AA  33%  Short-Term Investments & Other  3% 


A  16%     

 

 

1 As a percentage of net assets on November 30, 2009. Excludes cash and cash equivalents.

2 As a percentage of net assets on November 30, 2009.

3 Investments focused in one sector may fluctuate more widely than investments across multiple sectors. Because the Fund may focus on particular industries, its performance may depend on the performance of those sectors.

10  Massachusetts Tax-Free Income Fund | Semiannual report 



Fund’s investments


As of 11-30-09 (unaudited) 

    Maturity     
  Rate  date  Par value  Value 
Municipal Bonds 96.89%        $120,793,741 

(Cost $117,152,360)         
 
Guam 0.41%        508,750 

Guam Government,         
 Section 30, Series A  5.750%  12-01-34  $500,000  508,750 
 
Massachusetts 85.37%        106,435,373 

Boston Housing Authority,         
 Capital Program Revenue (D)  5.000  04-01-27  3,255,000  3,429,338 
 Capital Program Revenue (D)  5.000  04-01-28  2,000,000  2,095,660 
 Capital Program Revenue (D)  4.500  04-01-26  1,000,000  1,006,860 

Boston Industrial Development         
 Financing Authority,         
 Harbor Electric Energy Co. AMT  7.375  05-15-15  150,000  150,546 

Boston Water & Sewer Commission, Series A  5.750  11-01-13  355,000  389,091 

Commonwealth of Massachusetts,         
 General Obligation (D)  5.500  11-01-17  1,000,000  1,203,240 
 General Obligation, Series C  5.500  11-01-15  1,000,000  1,188,490 
 General Obligation, Series C (D)  5.500  12-01-24  2,000,000  2,419,360 
 General Obligation, Series C  5.375  12-01-19  1,000,000  1,090,720 
 General Obligation, Series E (D)  5.000  11-01-25  1,000,000  1,150,090 

Freetown Lakeville Regional School District,         
 General Obligation (D)  5.000  07-01-23  1,000,000  1,037,700 

Holyoke Gas & Electric Department,         
 Series A (D)  5.000  12-01-31  3,410,000  3,206,355 

Massachusetts Bay Transportation Authority,         
 Prerefunded, Series A  5.250  07-01-30  930,000  957,100 
 Series A  7.000  03-01-14  1,000,000  1,150,530 
 Series A  5.250  07-01-31  1,000,000  1,128,150 
 Series A  5.250  07-01-35  1,310,000  1,458,357 
 Series A  5.000  07-01-31  2,000,000  2,180,740 
 Series A  5.000  07-01-34  1,000,000  1,163,710 
 Series A–2  Zero  07-01-26  2,500,000  1,136,475 
 Series B  5.250  07-01-33  2,500,000  2,782,350 
 Unrefunded, Series A  5.250  07-01-30  70,000  70,902 

Massachusetts Development Finance Agency,         
 Belmont Hill School  5.000  09-01-31  1,000,000  1,085,380 
 Curry College, Series A (D)  5.250  03-01-26  1,000,000  938,520 
 Curry College, Series A (D)  4.500  03-01-25  1,000,000  872,250 
 Dominion Energy Brayton Point AMT  5.000  02-01-36  2,000,000  1,742,200 
 Plantation Apartments, Series A AMT  5.000  12-15-24  2,320,000  2,327,122 

See notes to financial statements

Semiannual report | Massachusetts Tax-Free Income Fund  11 



    Maturity     
  Rate  date  Par value  Value 
Massachusetts (continued)         

Massachusetts Development Finance Agency,         
 Draper Laboratory  5.875%  09-01-30  $2,000,000  $2,140,220 
 Groves Lincoln, Series A  7.750  06-01-39  700,000  679,896 
 Jewish Philanthropies, Series A  5.250  02-01-22  1,875,000  2,001,825 
 Linden Ponds, Inc., Series A  5.750  11-15-35  1,500,000  1,071,750 
 Massachusetts College of Pharmacy,         
 Series E (D)  5.000  07-01-37  1,000,000  998,470 
 New England Conservatory of Music  5.250  07-01-38  2,000,000  1,811,160 
 Ogden Haverhill Project, Series B AMT  5.500  12-01-19  1,500,000  1,376,550 
 Orchard Cove, Inc.  5.250  10-01-26  1,000,000  787,550 
 Semass Partnership, Series A (D)  5.625  01-01-16  500,000  515,715 
 VOA Concord Assistant Living, Series A  6.900  10-20-41  1,000,000  1,164,650 

Massachusetts Health & Educational         
 Facilities Authority,         
 Boston College, Series L  4.750  06-01-31  1,000,000  1,000,020 
 Caregroup, Series E-1  5.125  07-01-33  250,000  227,550 
 Civic Investments, Series B  9.200  12-15-31  2,000,000  2,498,260 
 Emerson Hospital, Series E (D)  5.000  08-15-35  1,000,000  731,960 
 Harvard Pilgrim Healthcare, Series A (D)  5.000  07-01-18  1,000,000  1,004,260 
 Harvard University, Series W  6.000  07-01-35  1,000,000  1,043,520 
 Lahey Clinic, Inc., Series C (D)  5.000  08-15-23  1,000,000  989,180 
 Partners Healtcare  5.000  07-01-22  1,000,000  1,066,630 
 Prerefunded, Partners Healtcare, Series C  5.750  07-01-32  970,000  1,058,998 
 Simmons College, Series D (D)  6.150  10-01-29  1,000,000  1,056,680 
 Sterling & Francine Clark, Series A  5.000  07-01-36  1,000,000  1,014,520 
 Suffolk University, Series A  6.250  07-01-30  1,000,000  1,047,650 
 Tufts University  5.375  08-15-38  350,000  372,617 
 UMass Worcester Campus, Series B (D)  5.250  10-01-31  1,500,000  1,626,585 
 Unrefunded, Partners Healthcare, Series C  5.750  07-01-32  30,000  30,809 
 Unrefunded, South Shore Hospital  5.750  07-01-29  365,000  365,252 
 Wheelock College, Series B (D)  5.625  10-01-30  1,000,000  1,084,690 
 Williams College, Series H  5.000  07-01-33  1,500,000  1,542,525 
 Woods Hole Oceanographic, Series B  5.375  06-01-30  1,000,000  1,061,250 

Massachusetts Housing Finance Agency,         
 Series A AMT (D)  5.800  07-01-30  910,000  907,780 
 Series B  4.700  12-01-16  1,265,000  1,297,599 

Massachusetts Industrial Finance Agency,         
 Mass American Water Co. AMT  6.900  12-01-29  1,210,000  1,162,931 
 Mass American Water Co. AMT  6.750  12-01-20  2,780,000  2,780,334 
 Ogden Haverhill Project, Series A AMT  5.600  12-01-19  500,000  465,885 

Massachusetts Port Authority,         
 Bosfuel Corp. AMT (D)  5.000  07-01-32  1,770,000  1,658,419 
 Series C (D)  5.750  07-01-29  1,250,000  1,268,412 
 US Airways, Inc., Series A AMT (D)  5.750  09-01-16  1,000,000  945,220 

Massachusetts Special Obligation,         
 Dedicated Tax (D)  5.250  01-01-26  1,000,000  1,144,230 

Massachusetts State College Building Authority,         
 Series A  5.500  05-01-49  1,000,000  1,034,490 
 Series B (D)  Zero  05-01-19  1,000,000  681,040 

Massachusetts State Turnpike Authority,         
 Series A (D)  5.125  01-01-23  4,895,000  4,966,627 
 Series A (D)  5.000  01-01-37  300,000  279,783 
 Series C (D)  Zero  01-01-20  1,000,000  588,860 

See notes to financial statements

12  Massachusetts Tax-Free Income Fund | Semiannual report 



    Maturity     
  Rate  date  Par value  Value 
Massachusetts (continued)         

Massachusetts Water Pollution         
 Abatement Trust,         
 Prerefunded, Series 7   5.125%  02-01-31  $645,000  $692,059 
 Refunded  5.000  08-01-28  1,000,000  1,093,750 
 Series 13  5.000  08-01-28  1,000,000  1,077,070 
 Series 14  5.000  08-01-32  1,000,000  1,060,530 
 Unrefunded, Series 7  5.125  02-01-31  1,775,000  1,808,015 
 Unrefunded, Series 9  5.250  08-01-18  60,000  69,625 

Massachusetts Water Resources Authority,         
 Series B (D)  5.250  08-01-29  2,500,000  2,852,525 
 Series B  5.000  08-01-39  1,000,000  1,034,030 

Narragansett Regional School District,         
 General Obligation (D)  5.375  06-01-18  1,000,000  1,031,410 

Pittsfield, City of,         
 General Obligation (D)  5.000  04-15-19  1,000,000  1,050,070 

Plymouth County,         
 Correctional Facility Project (D)  5.000  04-01-22  1,000,000  1,021,670 

Route 3 North Transit Improvement Associates,         
 Rev Lease (D)  5.375  06-15-29  3,100,000  3,185,591 

University of Massachusetts Building Authority,         
 Series 1  5.000  05-01-39  1,500,000  1,501,050 
 Series A (D)  5.125  11-01-25  1,000,000  1,044,390 
 
Puerto Rico 9.91%        12,355,443 

Commonwealth of Puerto Rico         
 General Obligation (D)(P)  9.532  07-01-11  700,000  779,310 

Commonwealth of Puerto Rico,         
 General Obligation, Series B  5.750  07-01-38  1,000,000  975,300 

Puerto Rico Aqueduct & Sewer Authority (D)(P)  10.021  07-01-11  2,000,000  2,347,760 

Puerto Rico Aqueduct & Sewer Authority,         
 Series A  Zero  07-01-24  1,750,000  1,698,340 

Puerto Rico Highway & Transportation Authority,         
 Prerefunded, Series Y  6.250  07-01-14  955,000  1,159,083 
 Series AA (D)  5.500  07-01-19  2,000,000  2,101,760 
 Unrefunded, Series Y  6.250  07-01-14  45,000  49,630 

Puerto Rico Housing Finance Authority,         
 Single Family Revenue  5.125  12-01-27  1,000,000  1,012,590 

Puerto Rico Sales Tax Financing Authority,         
 Capital Appreciation, Series A  Zero  08-01-32  3,000,000  2,231,670 
 
Virgin Islands 1.20%        1,494,175 

Virgin Islands Public Finance Authority,         
 Series A  6.750  10-01-37  1,000,000  1,046,760 
 Series A–1  5.000  10-01-39  500,000  447,415 

See notes to financial statements

Semiannual report | Massachusetts Tax-Free Income Fund  13 



  Par value  Value 
Short-Term Investments 1.38%    $1,718,000 

(Cost $1,718,000)     
 
Repurchase Agreement 1.38%    1,718,000 
Repurchase Agreement with State Street Corp. dated 11-30-09     
 at 0.05% to be repurchased at $1,718,002 on 12-1-09,     
 collateralized by $1,755,000 U.S. Treasury Bills, 0.00%     
 due 5-13-10 (valued at $1,754,123 including interest)  1,718,000  1,718,000 
 
Total investments (Cost $118,870,360)98.27%    $122,511,741 

Other assets and liabilities, net 1.73%    $2,159,215 

Total net assets 100.00%    $124,670,956 


The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common shareholders.

AMT Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax.

(D) Bond is insured by one of these companies:

Insurance coverage  As a % of total investments 

ACA Financial Guaranty Corp.    1.48% 
Ambac Financial Group, Inc.    6.19% 
Assured Guaranty Ltd.    0.81% 
Financial Guaranty Insurance Company    6.32% 
Financial Security Assurance, Inc.    10.50% 
National Public Finance Guarantee Insurance Company  16.99% 
Radian Asset Assurance, Inc.    0.60% 
XL Capital Assurance, Inc.    0.56% 

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

† At November 30, 2009, the aggregate cost of investment securities for federal income tax purposes was $118,602,402. Net unrealized appreciation aggregated $3,909,339, of which $6,001,135 related to appreciated investment securities and $2,091,796 related to depreciated investment securities.

See notes to financial statements

14  Massachusetts Tax-Free Income Fund | Semiannual report 



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

Financial statements

Statement of assets and liabilities 11-30-09 (unaudited)

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

Assets   

Investments, at value (Cost $118,870,360)  $122,511,741 
Cash  106 
Receivable for fund shares sold  254,341 
Interest receivable  2,088,979 
Other receivables and prepaid assets  14,406 
 
Total assets  124,869,573 
 
Liabilities   

Payable for fund shares repurchased  23,728 
Distributions payable  119,279 
Payable to affiliates   
 Accounting and legal services fees  831 
 Transfer agent fees  6,635 
 Distribution and service fees  13,834 
 Trustees’ fees  2,574 
Other liabilities and accrued expenses  31,736 
 
Total liabilities  198,617 
 
Net assets   

Capital paid-in  $120,722,715 
Undistributed net investment income  30,012 
Accumulated net realized gain on investments  276,848 
Net unrealized appreciation on investments  3,641,381 
 
Net assets  $124,670,956 
 
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 ($101,316,674 ÷ 8,171,892 shares)  $12.40 
Class B ($6,063,808 ÷ 489,165  shares)1  $12.40 
Class C ($17,290,474 ÷ 1,394,664 shares)1  $12.40 
 
Maximum offering price per share   

Class A (net asset value per share ÷ 95.5%)2  $12.98 

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

2 On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced.

See notes to financial statements

Semiannual report | Massachusetts Tax-Free Income Fund  15 



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

Statement of operations For the period ended 11-30-09 (unaudited)

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   

 
Interest  $3,017,781 
 
Expenses   

Investment management fees (Note 4)  306,081 
Distribution and service fees (Note 4)  261,884 
Accounting and legal services fees (Note 4)  11,241 
Transfer agent fees (Note 4)  37,113 
Trustees’ fees (Note 5)  7,166 
State registration fees  4,069 
Printing and postage fees  10,729 
Professional fees  33,420 
Custodian fees  17,222 
Registration and filing fees  9,012 
Other  1,155 
 
Total expenses  699,092 
Less expense reductions (Note 4)  (1,906) 
 
Net expenses  697,186 
 
Net investment income  2,320,595 
 
Realized and unrealized gain (loss)   

Net realized loss on investments  (327,758) 
Change in net unrealized appreciation (depreciation) of investments  3,334,568 
 
Net realized and unrealized gain  3,006,810 
 
Increase in net assets from operations  $5,327,405 

See notes to financial statements

16  Massachusetts Tax-Free Income Fund | Semiannual report 



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

Statements 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 three 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.

  Period  Period  Year 
  ended  ended  ended 
  11-30-091  5-31-092  8-31-08 
Increase (decrease) in net assets       

From operations       
Net investment income  $2,320,595  $3,560,177  $4,319,087 
Net realized gain (loss)  (327,758)  271,658  54,090 
Change in net unrealized       
 appreciation (depreciation)  3,334,568  (2,550,725)  (761,375) 
Increase in net assets resulting       
    from operations  5,327,405  1,281,110  3,611,802 
Distributions to shareholders       
From net investment income       
Class A  (1,934,852)  (2,966,287)  (3,530,398) 
Class B  (108,019)  (220,290)  (365,306) 
Class C  (253,902)  (337,360)  (365,433) 
From net realized gain       
Class A    (39,269)  (145,816) 
Class B    (3,504)  (20,811) 
Class C    (5,057)  (18,468) 
 
Total distributions  (2,296,773)  (3,571,767)  (4,446,232) 
 
From Fund share transactions (Note 6)  5,154,034  (547,233)  17,294,873 
 
Total increase (decrease)  8,184,666  (2,837,890)  16,460,443 
 
Net assets       

Beginning of period  116,486,290  119,324,180  102,863,737 
 
End of period  $124,670,956  $116,486,290  $119,324,180 
 
Undistributed net investment income  $30,012  $6,190  $7,533 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

See notes to financial statements

Semiannual report | Massachusetts Tax-Free Income Fund  17 



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  11-30-091  5-31-092  8-31-08  8-31-07  8-31-06  8-31-05  8-31-04 
 
Per share operating performance               

Net asset value, beginning               
 of period  $12.10  $12.28  $12.37  $12.64  $12.87  $12.75  $12.38 
Net investment income3  0.24  0.38  0.51  0.53  0.53  0.54  0.56 
Net realized and unrealized gain               
 (loss) on investments  0.30  (0.17)  (0.08)  (0.27)  (0.24)  0.11  0.36 
Total from investment operations  0.54  0.21  0.43  0.26  0.29  0.65  0.92 
Less distributions               
From net investment income  (0.24)  (0.39)  (0.50)  (0.52)  (0.52)  (0.53)  (0.55) 
From net realized gain    4  (0.02)  (0.01)  4     
Total distributions  (0.24)  (0.39)  (0.52)  (0.53)  (0.52)  (0.53)  (0.55) 
Net asset value, end of period  $12.40  $12.10  $12.28  $12.37  $12.64  $12.87  $12.75 
Total return (%)5  4.506  1.846  3.557  2.027  2.387  5.21  7.55 
 
Ratios and supplemental data               

Net assets, end of period               
 (in millions)  $101  $95  $97  $80  $78  $76  $71 
Ratios (as a percentage of average               
 net assets):               
 Expenses before reductions  1.028     1.098,9  0.98  0.98  0.99  1.04  1.01 
 Expenses net of fee waivers  1.028     1.098,9  0.98  0.98  0.99  1.04  1.01 
 Expenses net of fee waivers               
    and credits  1.028     1.098,9  0.97  0.98  0.99  1.04  1.01 
 Net investment income  3.958  4.398  4.08  4.16  4.19  4.20  4.40 
Portfolio turnover (%)  8  17  22  25  15  26  44 
 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

3 Based on the average daily shares outstanding.

4 Capital gain distribution less than $0.01.

5 Assumes dividend reinvestment (if applicable).

6 Not annualized.

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

8 Annualized.

9 Includes the impact of proxy expenses, which amounted to 0.04% of average net assets.

See notes to financial statements

18  Massachusetts Tax-Free Income Fund | Semiannual report 



CLASS B SHARES Period ended  11-30-091  5-31-092  8-31-08  8-31-07  8-31-06  8-31-05  8-31-04 
 
Per share operating performance               

Net asset value, beginning               
 of period  $12.09  $12.28  $12.37  $12.64  $12.87  $12.75  $12.38 
Net investment income3  0.20  0.32  0.42  0.44  0.44  0.45  0.47 
Net realized and unrealized gain               
 (loss) on investments  0.31  (0.19)  (0.08)  (0.27)  (0.24)  0.11  0.36 
Total from investment operations  0.51  0.13  0.34  0.17  0.20  0.56  0.83 
Less distributions               
From net investment income  (0.20)  (0.32)  (0.41)  (0.43)  (0.43)  (0.44)  (0.46) 
From net realized gain    4  (0.02)  (0.01)  4     
Total distributions  (0.20)  (0.32)  (0.43)  (0.44)  (0.43)  (0.44)  (0.46) 
Net asset value, end of period  $12.40  $12.09  $12.28  $12.37  $12.64  $12.87  $12.75 
Total return (%)5  4.226  1.226  2.837  1.317  1.677  4.48  6.80 
 
Ratios and supplemental data               

Net assets, end of period               
 (in millions)  $6  $7  $10  $12  $17  $20  $23 
Ratios (as a percentage of average               
 net assets):               
 Expenses before reductions  1.728     1.798,9  1.68  1.68  1.69  1.74  1.71 
 Expenses net of fee waivers  1.718     1.798,9  1.68  1.68  1.69  1.74  1.71 
 Expenses net of fee waivers               
    and credits  1.718     1.798,9  1.67  1.68  1.69  1.74  1.71 
 Net investment income  3.258  3.698  3.39  3.46  3.49  3.50  3.70 
Portfolio turnover (%)  8  17  22  25  15  26  44 
   

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

3 Based on the average daily shares outstanding.

4 Capital gain distribution less than $0.01.

5 Assumes dividend reinvestment (if applicable).

6 Not annualized.

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

8 Annualized.

9 Includes the impact of proxy expenses, which amounted to 0.04% of average net assets.

See notes to financial statements

Semiannual report | Massachusetts Tax-Free Income Fund  19 



CLASS C SHARES Period ended  11-30-091  5-31-092  8-31-08  8-31-07  8-31-06  8-31-05  8-31-04 
 
Per share operating performance               

Net asset value, beginning               
 of period  $12.10  $12.28  $12.37  $12.64  $12.87  $12.75  $12.38 
Net investment income3  0.20  0.32  0.42  0.44  0.44  0.45  0.47 
Net realized and unrealized gain               
 (loss) on investments  0.30  (0.18)  (0.08)  (0.27)  (0.24)  0.11  0.36 
Total from investment operations  0.50  0.14  0.34  0.17  0.20  0.56  0.83 
Less distributions               
From net investment income  (0.20)  (0.32)  (0.41)  (0.43)  (0.43)  (0.44)  (0.46) 
From net realized gain    4  (0.02)  (0.01)  4     
Total distributions  (0.20)  (0.32)  (0.43)  (0.44)  (0.43)  (0.44)  (0.46) 
Net asset value, end of period  $12.40  $12.10  $12.28  $12.37  $12.64  $12.87  $12.75 
Total return (%)5  4.136  1.316  2.837  1.317  1.677  4.48  6.80 
 
Ratios and supplemental data               

Net assets, end of period               
 (in millions)  $17  $14  $12  $10  $11  $8  $8 
Ratios (as a percentage of average               
 net assets):               
 Expenses before reductions  1.728     1.798,9  1.68  1.68  1.69  1.74  1.71 
 Expenses net of fee waivers  1.718     1.798,9  1.68  1.68  1.69  1.74  1.71 
 Expenses net of fee waivers               
    and credits  1.718     1.798,9  1.67  1.68  1.69  1.74  1.71 
 Net investment income  3.248  3.678  3.38  3.46  3.48  3.49  3.69 
Portfolio turnover (%)  8  17  22  25  15  26  44 
 

1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

3 Based on the average daily shares outstanding.

4 Capital gain distribution less than $0.01.

5 Assumes dividend reinvestment (if applicable).

6 Not annualized.

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

8 Annualized.

9 Includes the impact of proxy expenses, which amounted to 0.04% of average net assets.

See notes to financial statements

20  Massachusetts Tax-Free Income Fund | Semiannual report 



Notes to financial statements
(unaudited)

Note 1
Organization

John Hancock Massachusetts Tax-Free Income Fund (the Fund) is a non-diversified series of John Hancock Tax-Exempt Series Fund (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Fund seeks a high level of current income, consistent with preservation of capital, that is exempt from federal and Massachusetts personal income taxes.

John Hancock Advisers, LLC (the Adviser) serves as investment adviser for the Fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Fund. The Adviser and the Distributor are indirect wholly owned subsidiaries of Manulife Financial Corporation (MFC).

The Trustees have authorized the issuance of multiple classes of shares of the Fund, designated as Class A, Class B and Class C shares. The shares of each class represent an interest in the same portfolio of investments of the Fund and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Class B shares will convert to Class A shares eight years after purchase.

Note 2
Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, January 25, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security valuation

Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied quotes and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of tradin g. Debt obligations, where there are no prices available from an independent pricing service, are valued based on bid quotations or evaluated prices, as applicable, obtained from broker-dealers or fair valued as described below. Certain short-term debt investments are valued at amortized cost.

Other assets and securities where market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s Pricing Committee in accordance with procedures adopted by the Board of Trustees.

Fair value measurements

The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

Semiannual report | Massachusetts Tax-Free Income Fund  21 



Level 1 – Exchange-traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants and rights.

Level 2 – Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities.

Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Fund’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At November 30, 2009, total investments for the Fund are Level 2 under the hierarchy discussed above.

Security transactions and related
investment income

Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Discounts/premiums are accreted/amortized for financial reporting purposes. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful. The Fund uses the identified cost method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.

Repurchase agreements

The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is generally at least 102% of the repurchase amount. The Fund will take receipt of all securities underlying the repurchase agreements it has entered into until such agreements expire. If the seller defaults, the Fund would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. The Fund may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser.

Line of credit

The Fund and other affiliated funds have entered into an agreement which enables them to participate in a $150 million unsecured committed line of credit with the Fund’s custodian. The Fund is permitted to have bank borrowings for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.08% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit, is charged to each participating fund on a prorated basis based on average net assets. For

22  Massachusetts Tax-Free Income Fund | Semiannual report 



the six-months ended November 30, 2009, there were no borrowings under the line of credit by the Fund.

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

Expenses

The majority of expenses are directly identifiable to an individual fund. Trust expenses that are not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations

Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the appropriate net asset value of the respective classes. Distribution and service fees, if any, and transfer agent fees, for all classes are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rate(s) applicable to each class.

Federal income taxes

The Fund intends to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

As of May 31, 2009, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund’s federal tax return is subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains

The Fund records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are paid annually. During the nine-month period ended May 31, 2009, the tax character of distributions paid was as follows: ordinary income $36,988, tax exempt income $3,486,949 and long-term capital gain $47,830. During the year ended August 31, 2008, the tax character of distributions paid was as follows: ordinary income $27,894, tax exempt income $4,233,243 and  long-term capital gain $185,095. Distributions paid by the Fund with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class.

Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Material distributions in excess of tax basis earnings and profits, if any, are reported in the Fund’s financial statements as a return of capital.

Note 3
Guarantees and indemnifications

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

Semiannual report | Massachusetts Tax-Free Income Fund  23 



Note 4
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, on an annual basis, to the sum of: (a) 0.50% of the first $250,000,000 of the Fund’s average daily net asset value, (b) 0.45% of the next $250,000,000, (c) 0.425% of the next $500,000,000, (d) 0.40% of the next $250,000,000 and (e) 0.30% of the Fund’s average daily net asset value in excess of $1,250,000,000. The Fund has a subadvisory agreement with MFC Global Investment Management (U.S.), LLC, a subsidiary of MFC and an affiliate of the Adviser. The Fund is not responsible for payment of subadvisory fees. The investment management fees incurred for the six-month period ended November 30, 2009, were equivalent to an annual effective rate of 0.50% of the Fund’s average dai ly net assets.

Pursuant to the Advisory Agreement, the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Fund, including the preparation of all tax returns, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each class at the time the expense was incurred. The accounting and legal services fees incurred for the six-month period ended November 30, 2009, were equivalent to an annual effective rate of 0.02% of the Fund’s average daily net assets.

The Fund has a Distribution Agreement with the Distributor. The Fund has adopted Distribution Plans with respect to Class A, Class B and Class C shares, pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for the services it provides as distributor of shares of the Fund. Accordingly, Class A shares and Class B shares make daily payments and Class C shares make monthly payments to the Distributor at an annual rate not to exceed 0.30%, 1.00% and 1.00% of average daily net asset value of Class A, Class B and Class C shares, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority. Under the Conduct Rules, curtailment of a portion of the Fund’s Rule 12b-1 payments could occur under certain circumstances.

Class A shares are assessed up-front sales charges. During the six-month period ended November 30, 2009, the Distributor received net up-front sales charges of $98,460 with regard to sales of Class A shares. Of this amount, $12,320 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $84,250 was paid as sales commissions to unrelated broker-dealers and $1,890 was paid as sales commissions to sales personnel of Signator Investors, Inc. (Signator Investors), a related broker-dealer. Signator Investors is an affiliate of the Adviser.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (CDSC) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used in whole or in part to defray its expenses for providing distribution-related services to the Fund in connection with the sale of Class B and Class C shares. During the six-month period ended November 30, 2009, CDSCs received by the Distributor amounted to $1,390 and $39 for Class B and Class C shares, respectively.

The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. The transfer agent fees are made up of three components:

24  Massachusetts Tax-Free Income Fund | Semiannual report 



• The Fund pays a monthly transfer agent fee at an annual rate of 0.01% for all Classes based on each class’s average daily net assets.

• All classes of the Fund pay a monthly fee based on an annual rate of $17.50 per shareholder account.

• In addition, Signature Services is reimbursed for certain out-of-pocket expenses.

Signature Services has voluntarily agreed to waive certain transfer agent expenses. The amount of this waiver for the six-month period ended November 30, 2009 was $744.

Certain investor accounts that maintain small balances are charged an annual small accounts fee. Amounts related to these fees are credited to the Fund and netted against transfer agent expenses. For the six-month period ended November 30, 2009, these fees totaled $1,162.

Class level expenses for the six-month period ended November 30, 2009 were as follows:

  Distribution and  Transfer 
Share class  service fees  agent fees 

Class A  $148,717  $30,282 
Class B  33,688  2,138 
Class C  79,479  4,693 
Total  $261,884  $37,113 

Note 5
Trustees’ fees

The compensation of independent Trustees is borne by the Fund. The independent Trustees may elect to defer, for tax purposes, their receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan. The Fund makes investments into other John Hancock funds, as applicable, to cover its liability for the deferred compensation. Investments to cover the Fund’s deferred compensation liability are recorded on the Fund’s books as an other asset. The deferred compensation liability and the related other asset are always equal and are marked to market on a periodic basis to reflect any income earned by the investments, as well as any unrealized gains or losses. The Deferred Compensation Plan investments had no impact on the operations of the Fund.

Semiannual report | Massachusetts Tax-Free Income Fund  25 



Note 6
Fund share transactions

This listing illustrates the number of Fund shares sold, reinvested and repurchased during the six-month period ended November 30, 2009, the nine-month period ended May 31, 2009 and the year ended August 31, 2008, along with the corresponding dollar value.

  Period ended 11-30-091  Period ended 5-31-092  Year ended 8-31-08 
  Shares  Amount  Shares  Amount  Shares  Amount 
Class A shares             

Sold  917,354  $11,229,366  1,165,885  $13,673,023  2,219,649  $27,487,293 
Distributions             
reinvested  101,853  1,252,066  164,304  1,918,925  196,397  2,425,793 
Repurchased  (726,069)  (8,939,909)  (1,376,183)    (15,740,982)  (955,292)  (11,857,448) 
 
Net increase             
(decrease)  293,138  $3,541,523  (45,994)  ($149,034)  1,460,754  $18,055,638 
Class B shares             

Sold  22,241  $272,999  30,356  $359,222  46,318  $571,989 
Distributions             
reinvested  4,524  55,498  11,140  129,746  18,462  228,233 
Repurchased  (136,325)  (1,674,441)  (244,117)  (2,835,812)  (271,739)  (3,381,097) 
 
Net decrease  (109,560)  ($1,345,944)  (202,621)  ($2,346,844)  (206,959)  ($2,580,875) 
Class C shares             

Sold  339,737  $4,159,553  271,489  $3,213,587  272,222  $3,366,433 
Distributions             
reinvested  12,043  148,195  18,700  218,103  20,820  257,178 
Repurchased  (109,628)  (1,349,293)  (129,730)  (1,483,045)  (145,385)  (1,803,501) 
 
Net increase  242,152  $2,958,455  160,459  $1,948,645  147,657  $1,820,110 
 
Net increase             
(decrease)  425,730  $5,154,034  (88,156)  ($547,233)  1,401,452  $17,294,873 


1 Semiannual period from 6-1-09 to 11-30-09. Unaudited.

2 For the nine month period ended May 31, 2009. The Fund changed its fiscal year end from August 31 to May 31.

Note 7
Purchase and sale of securities

Purchases and proceeds from sales or maturities of securities during the six-month period ended November 30, 2009, aggregated $18,768,184 and $15,267,119, respectively. These amounts include purchases and sales of variable rate demand notes, which amounted to $4,500,000 and $5,285,000, respectively. Other short-term securities are excluded from these amounts.

26  Massachusetts Tax-Free Income Fund | Semiannual report 



Board Consideration of and
Continuation of Investment Advisory
Agreement and Subadvisory Agreement

The Investment Company Act of 1940 (the 1940 Act) requires the Board of Trustees (the Board) of John Hancock Tax-Exempt Series Fund (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 existing advisory and subadvisory agreements. At meetings held on May 6–7 and June 8–9, 2009, the Board considered the renewal of:

(i) the investment advisory agreement (the Advisory Agreement) with John Hancock Advisers, LLC (the Adviser) and

(ii) the investment subadvisory agreement (the Subadvisory Agreement) with MFC Global Investment Management (U.S.), LLC (the Subadviser) for the John Hancock Massachusetts Tax-Free Income Fund (the Fund).

The Advisory Agreement and the Subadvisory Agreement are collectively referred to as the Advisory Agreements. 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 its Independent Trustees, reviewed a broad range of information requested for this purpose. 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. 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. It considered the background and experience of senior management and investment professionals responsible for managing the Fund. The Board considered the investment philosophy, research and investment decision-making processes of the Adviser and the Subadviser responsible for the daily investment activities of the Fund. The Board considered the Subadviser’s history and experience with the Fund. The Board considered the Adviser’s execution of its oversight responsibilities. The Board further considered the culture of compliance, resources dedicated to compliance, compliance programs, record of compliance with applicable laws and regulation, with the Fund’s investment policies and restrictions and with the applicable Code of Ethics, and the responsibilities of the Adviser’s and Subadviser’s compliance department. In addition, the Board took into account the administrative and other non-advisory services provided to the Fund by the Adviser and its affiliates.

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

Fund performance

The Board considered the performance results for the Fund over various time periods ended December 31, 2008. The Board also considered these results in comparison to the performance of a category of relevant funds (the Category), a peer group of comparable funds (the Peer Group) and a benchmark index. The funds within each Category and Peer Group were selected by Morningstar Inc. (Morningstar), an independent provider of

Semiannual report | Massachusetts Tax-Free Income Fund  27 



investment company data. The Board reviewed the methodology used by Morningstar to select the funds in the Category and the Peer Group. The Board also considered updated performance information at its May and June 2009 meetings. Performance and other information may be quite different as of the date of this shareholders report.

The Board noted that the Fund’s performance was equal to or inline with the performance of the Category median for the 1-, 5- and 10-year periods. The Board also noted that the Fund’s performance for the 3-year time period was lower than, but generally competitive with, the performance of the Category median. The Board viewed favorably that the Fund’s performance for all periods under review was higher than the performance of the Peer Group median. The Board noted that the Fund’s performance for all periods under review was lower than the performance of its benchmark index, the Barclays Capital Municipal Bond Index, as was the performance of the Category and Peer Group 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 Category and Peer Group. The Board noted that the Fund’s Advisory Agreement Rate was inline with the Category median and equal to the Peer Group median.

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 (Expense Ratio). The Board received and considered information comparing the Expense Ratio of the Fund to that of the Peer Group and Category medians before the application of fee waivers and reimbursements (Gross Expense Ratio) and after the application of such waivers and reimbursement (Net Expense Ratio). The Board noted that the Fund’s Net Expense Ratio was higher than the Peer Group and Category medians. The Board also noted that the Fund’s Gross Expense Ratio was inline with the Category and Peer Group medians. The Board noted that the Fund’s distribution expense contributed to the Fund’s net expense results, and noted that, unlike the Fund, several funds in the Peer Group employed fee waivers or reimbursements.

The Adviser also discussed the Morningstar data and rankings, and other relevant information, for the Fund. Based on the above-referenced considerations and other factors, the Board concluded that the Fund’s overall performance and expense results 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 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,

28  Massachusetts Tax-Free Income Fund | Semiannual report 



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 and Subadviser’s costs are not specific to individual Funds, but rather are incurred across a variety of products and services. To ensure that any economies are reasonably shared with the Fund as its assets increase, the Adviser and the Board agreed to continue the existing breakpoints to the Advisory Agreement Rate.

Information about services to other clients

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

Other benefits to the Adviser

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

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 and Subadviser at least quarterly, which include, among other things, fund performance reports and compliance reports. In addition, the Board meets with senior investment officers at various times throughout the year.

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

Semiannual report | Massachusetts Tax-Free Income Fund  29 



More information

Trustees
Patti McGill Peterson, Chairperson
James R. Boyle
James F. Carlin
William H. Cunningham
Deborah C. Jackson*
Charles L. Ladner
Stanley Martin*
Dr. John A. Moore
Steven R. Pruchansky
Gregory A. Russo
John G. Vrysen

Officers
Keith F. Hartstein
President and Chief Executive Officer

Andrew G. Arnott

Chief Operating Officer

Thomas M. Kinzler

Secretary and Chief Legal Officer

Francis V. Knox, Jr.

Chief Compliance Officer

Charles A. Rizzo

Chief Financial Officer

Michael J. Leary

Treasurer

Investment adviser
John Hancock Advisers, LLC

Subadviser
MFC Global Investment
Management (U.S.), LLC

Principal distributor
John Hancock Funds, LLC

Custodian
State Street Bank and Trust Company

Transfer agent
John Hancock Signature Services, Inc.

Legal counsel
K&L Gates LLP

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

* Member of the Audit Committee
Member of the Audit Committee effective 9-1-09
† Non-Independent Trustee
‡ Effective 9-1-09

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

The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The Fund’s Form N-Q is available on our Web site and the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-800-SEC-0330 to receive information on the operation of the SEC’s Public Reference Room.

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site www.jhfunds.com or by calling 1-800-225-5291.

You can also contact us:     
1-800-225-5291  Regular mail:  Express mail: 
jhfunds.com  John Hancock Signature Services, Inc.  John Hancock Signature Services, Inc. 
  P.O. Box 55913  Mutual Fund Image Operations 
  Boston, MA 02205-5913  30 Dan Road 
    Canton, MA 02021 

30  Massachusetts Tax-Free Income Fund | Semiannual report 




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

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

This report is for the information of the shareholders of John Hancock Massachusetts Tax-Free Income Fund.  770SA 11/09 
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.  1/10 



ITEM 2. CODE OF ETHICS.

Not applicable at this time.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable at this time.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable at this time.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable at this time.

ITEM 6. SCHEDULE OF INVESTMENTS.

(a) Not applicable.
(b) Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

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

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

ITEM 12. EXHIBITS.



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

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

(c)(1) 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 Tax-Exempt Series Fund

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

Date: January 25, 2010

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: January 25, 2010

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

Date: January 25, 2010


EX-99.CERT 2 b_taxexemptseriescert.htm CERTIFICATION b_taxexemptseriescert.htm

CERTIFICATION

I, Keith F. Hartstein, certify that:

1. I have reviewed this report on Form N-CSR of the John Hancock Tax-Exempt Series Fund (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.

Date: January 25, 2010  By: /s/ Keith F. Hartstein 
__________________________________
  Keith F. Hartstein 
  President and Chief Executive Officer 



CERTIFICATION

I, Charles A. Rizzo, certify that:

1. I have reviewed this report on Form N-CSR of the John Hancock Tax-Exempt Series Fund (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.

Date: January 25 2010  By: /s/ Charles A. Rizzo 
__________________________________
  Charles A. Rizzo 
  Chief Financial Officer 


EX-99.906 CERT 3 c_taxexemptseriescertnos.htm CERTIFICATION 906 c_taxexemptseriescertnos.htm
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 Tax-Exempt Series Fund (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: January 25, 2010 
 
 
 
                   /s/ Charles A. Rizzo 
                   -------------------------------- 
                   Charles A. Rizzo 
                   Chief Financial Officer 
 
 
 
Dated: January 25, 2010 

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.


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