-----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, S3s1hmLVSurvhtaVjYCbq5Npu1hre+GxPk0O2g3ZOMyWi9PEAbRXAvqVTDaBAJYj VAmQ18zGuNLHbBcAOxGw/w== 0000868549-03-000003.txt : 20031120 0000868549-03-000003.hdr.sgml : 20031120 20031120113434 ACCESSION NUMBER: 0000868549-03-000003 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031120 EFFECTIVENESS DATE: 20031120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANCOCK JOHN PATRIOT PREMIUM DIVIDEND FUND I CENTRAL INDEX KEY: 0000868549 IRS NUMBER: 043044078 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06182 FILM NUMBER: 031014699 BUSINESS ADDRESS: STREET 1: 101 HUNTINGTON AVENUE CITY: BOSTON STATE: MA ZIP: 02199-7603 BUSINESS PHONE: 6173751702 MAIL ADDRESS: STREET 1: 101 HUNTINGTON AVE CITY: BOSTON STATE: MA ZIP: 02199-7603 FORMER COMPANY: FORMER CONFORMED NAME: PATRIOT PREMIUM DIVIDEND FUND I DATE OF NAME CHANGE: 19920703 N-CSR 1 patprem1.txt JOHN HANCOCK PATRIOT PREMIUM DIV. FUND I ITEM 1. REPORT TO STOCKHOLDERS. - -------------------------------------------------------------------------------- John Hancock Patriot Premium DIVIDEND FUND I - ------ Annual Report - ------ 9.30.03 [LOGO] John Hancock - -------------------------------------------------------------------------------- Table of contents - -------------------------- Your fund at a glance page 1 - -------------------------- Managers' report page 2 - -------------------------- Fund's investments page 6 - -------------------------- Financial statements page 9 - -------------------------- Trustees & officers page 22 - -------------------------- For your information page 29 - -------------------------- - -------------------------------------------------------------------------------- [A photo of Maureen Ford Goldfarb, Chairman and Chief Executive Officer, flush left next to first paragraph.] - -------------------------------------------------------------------------------- Dear Fellow Shareholders, The stock market has made a strong recovery in 2003. Historically low interest rates, improving corporate earnings and government stimulus in the form of tax cuts gave investors hope that the economy would soon begin to strengthen. The markets move up began in April and the breadth of the rally was enormous. As a result, the major indexes were able to wipe out their first-quarter losses and post solid gains for the first nine months of the year. With technology leading the way, the tech-heavy Nasdaq Composite Index rose 33.80% through September, while the Dow Jones Industrial Average was up 13.18% and the Standard & Poors 500 Index returned 14.71%. With falling interest rates, bonds also did well, although they reversed course in July and August. High yield bonds led the pack, returning 21.77% through September, as measured by the Lehman Brothers High Yield Index. In other news, we are pleased to inform you that on September 28, 2003, the Boards of Directors of Canada-based Manulife Financial Corporation and Boston-based John Hancock Financial Services, Inc., the parent company of John Hancock Funds, unanimously voted to merge the two companies. Please be assured that the completion of the merger - anticipated to occur in the first half of 2004 - will have no effect on your investment in our John Hancock mutual funds. Your funds adviser and board of trustees will remain the same, as will your relationship with your financial adviser. The merger is subject to customary closing conditions, including receipt of required regulatory approvals and approval by John Hancock stockholders. If you only own shares in a John Hancock mutual fund, you are not affected and will not receive a proxy. Additional information on this transaction is available on our Web site: www.jhfunds.com. If you have questions about the merger, you may also call 1-800-732-5543. Separately, for information about your investments in John Hancock mutual funds, please contact your financial adviser or our Customer Service representatives at 1-800-225-5291. Sincerely, /s/Maureen Ford Goldfarb - ------------------------ Maureen Ford Goldfarb, Chairman and Chief Executive Officer This commentary reflects the chairmans views as of September 30, 2003. They are subject to change at any time. - ----------- YOUR FUND AT A GLANCE - ----------- The Fund seeks to provide high current income, consistent with modest growth of capital, for holders of its common shares by investing in a diversified portfolio of dividend-paying preferred and common equity securities. Over the last twelve months [] Preferred stocks performed well as interest rates fell and Congress enacted a dividend tax cut. [] Utility common stocks rallied strongly. [] The Fund benefited from tax-advantaged dividend-paying preferred and common stocks. - -------------------------------------------------------------------------------- [Bar chart with heading "John Hancock Patriot Premium Dividend Fund I". Under the heading is a note that reads "Fund performance for the year ended September 30, 2003." The chart is scaled in increments of 5% with 0% at the bottom and 20% at the top. The first bar represents the 14.60% total return for John Hancock Patriot Premium Dividend Fund I. A note below the chart reads "The total return for the Fund is at net asset value with all distributions reinvested."] - -------------------------------------------------------------------------------- Top 10 issuers 7.3% NSTAR 5.4% Energy East Corp. 5.0% Puget Energy, Inc. 4.9% Shaw Communications, Inc. 4.7% Lehman Brothers Holdings, Inc. 3.1% CH Energy Group, Inc. 3.0% El Paso Tennessee Pipeline Co. 2.8% South Carolina Electric & Gas Co. 2.7% Alabama Power Co. 2.7% Sierra Pacific Power Co. As a percentage of net assets plus value of preferred shares on September 30, 2003. 1 BY GREGORY K. PHELPS AND MARK T. MALONEY FOR THE PORTFOLIO MANAGEMENT TEAM - --------- MANAGERS' REPORT - --------- John Hancock Patriot Premium Dividend Fund I Preferred stocks performed well amid mostly favorable conditions during the 12-month period ended September 30, 2003. Much of what was behind the preferred stock rally was action by the Federal Reserve Board, which lowered interest rates on two separate occasions during the year. Also boosting preferred stocks was demand from income-seeking individual investors and income-oriented mutual funds looking for significantly higher yields than what companies paid on their bonds and common stocks. The yields on many preferred stocks - which generally ranged from 6% to 7% - continued to outstrip by a fairly wide margin the yields available on Treasury and corporate bonds, as well as the dividends paid on common stocks. Demand also strengthened in advance of, and in response to, President Bushs dividend tax-cut package, which greatly reduced the taxes that individuals pay on many stock dividends. A dramatic rise in interest rates and bond yields in the summer briefly tempered an otherwise favorable backdrop for fixed-income-oriented investments, including preferreds. But they regained some of their footing by the final month of the period when weaker-than-expected economic reports helped to cool inflation concerns. "Preferred stocks performed well amid mostly favorable conditions during the 12-month period ended September 30, 2003." Utility common stocks - the Funds other area of emphasis - performed even better than preferreds, buoyed by a combination of utility companies ability to clean up their balance sheets and improve corporate earnings, and strong demand from investors seeking tax-advantaged dividend-paying stocks. Even the August electricity blackout that plagued cities from New York to Cleveland did not dim investors enthusiasm for the group. In fact, the blackout helped underscore the need for better, 2 - -------------------------------------------------------------------------------- [Photos of Greg Phelps and Mark Maloney] - -------------------------------------------------------------------------------- expensive high-voltage transmission and distribution systems, which would be fostered by state regulatory bodies granting the utilities higher allowable rates of return. FUND PERFORMANCE For the 12 months ended September 30, 2003, John Hancock Patriot Premium Dividend Fund I returned 14.60% at net asset value. Over the same period, the average income and preferred stock closed-end fund returned 21.10%, according to Lipper, Inc. The Funds lag stemmed primarily from our focus on high-quality investments; lower-quality junk names soared during the year in response to better-than-expected corporate earnings, fewer corporate defaults and a reduction in the rate of corporate credit downgrades. Meanwhile, the Standard & Poors 500 Index, a broad measure of the overall stock market, returned 24.37% and the Dow Jones Utility Average, which tracks the performance of 15 electric and natural gas utilities, returned 21.95%. OIL AND GAS SHINES Preferred stocks paying tax-advantaged dividends were some of the Funds best performers during the period. In particular, some of our best-performing and largest holdings in the category were oil and natural gas companies such as Anadarko Petroleum and Devon Energy which, along with strong investor demand, were helped by relatively high energy prices and favorable energy supply/demand conditions. In the electric utility segment of the tax-advantaged preferred group, our winners included holdings such as Boston Edison and Great Plains Energy. They got an added boost from their call protection, meaning they had some measure of protection against being redeemed by their issuers before maturity. In the financial segment, our winners included J.P. Morgan Chase, which also benefited from an increase in the growth of its private banking business, as well as an increased market share in stock and bond underwriting. Our holdings in Bear Stearns also posted good gains, primarily due to its ability to avoid scandals and produce financial results that met or exceeded expectations. "Preferred stocks paying tax-advantaged dividends were some of the Funds best performers during the period." 3 - -------------------------------------------------------------------------------- [Table at top left-hand side of page entitled "Top five industry groups1." The first listing is Utilities 68%, the second is Broker services 8%, the third Banks-United States 5%, the fourth Media 5%, and the fifth Oil & gas 5%.] - -------------------------------------------------------------------------------- In the utility common stock portion of the Fund, our best performers included Alliant Energy, Northeast Utilities and Dominion Resources. Alliant benefited from its back-to-basics approach and improved balance sheet. Dominion was helped by its increasingly valued oil and gas reserves and natural gas pipeline and storage assets. Investors rewarded Northeast in large measure because of its above-average dividend growth and its attractive service area, which boasts higher-than-average growth in electricity usage. In contrast, our common stock holdings in Aquila Inc. proved disappointing. Investors punished the stock because the company made an ill-timed foray into energy/merchant trading, which forced it to take write-downs and reduce dividends. That said, we believe that the companys efforts to return to its regulated electric and gas roots and reduce debt will help to restore its financial health over time. - -------------------------------------------------------------------------------- [Pie chart in middle of page with heading "Portfolio diversification1" The chart is divided into three sections (from top to left): Preferred stocks 64%, Common stocks 29% and Short-term investments 7%.] - -------------------------------------------------------------------------------- OUTLOOK For the balance of 2003, we remain optimistic about the outlook for preferred and utility common stocks. Much of our optimism stems from our macroeconomic outlook, which calls for a continually sluggish economy coupled with sustained low interest rates. This could continue to prompt strong demand for relatively high-yielding preferred and utility common stocks. Were also heartened by the fact that dividend tax relief could help boost demand for many stocks that pay high dividends, not only in the short-term but also over the next decade or so, as more aging Americans increasingly seek out income-oriented investment options. Utility common stocks have other 4 - -------------------------------------------------------------------------------- [Table at top of page entitled "SCORECARD". The header for the left column is "INVESTMENT" and the header for the right column is "PERIOD'S PERFORMANCE...AND WHAT'S BEHIND THE NUMBERS." The first listing is Northeast Utilities followed by an up arrow with the phrase "Strong demand for tax-advantage stocks." The second listing is J.P. Morgan Chase followed by an up arrow with the phrase "Uptick in high-net-worth clients/security underwriting." The third listing is Aquila, Inc. followed by a down arrow with the phrase "Reduction in dividend/credit ratings."] - -------------------------------------------------------------------------------- factors going for them as well, including the potential for more stable credit ratings, attractive valuations and the possible elimination of an anachronistic law limiting utility mergers. This commentary reflects the views of the portfolio management team through the end of the Funds period discussed in this report. The managers statements reflect their own opinions. As such, they are in no way guarantees of future events, and are not intended to be used as investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant. The Fund normally will invest more than 65% of its managed assets in securities of companies in the utilities industry. Such an investment concentration makes the Fund more susceptible than a broader diversified fund to factors adversely affecting the utilities industry. Sector investing is subject to greater risks than the market as a whole. 1 As a percentage of the Funds portfolio on September 30, 2003. 5 FINANCIAL STATEMENTS - ----------- FUND'S INVESTMENTS - ----------- Securities owned by the Fund on September 30, 2003 This schedule is divided into three main categories: preferred stocks, common stocks and short-term investments. The stocks are further broken down by industry group. Short-term investments, which represent the Funds cash position, are listed last.
SHARES ISSUER, DESCRIPTION VALUE - --------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS 97.51% $130,298,630 - --------------------------------------------------------------------------------------------------------------- (Cost $134,394,430) Agricultural Operations 1.96% 2,625,000 35,000 Ocean Spray Cranberries, Inc., 6.25%, Ser A (R) 2,625,000 Banks - United States 7.53% 10,058,252 45,000 HSBC USA, Inc., $2.8575 2,333,250 72,000 J.P. Morgan Chase & Co., 6.625%, Ser H 3,924,000 50,000 J.P. Morgan Chase Capital XI, 5.875% 1,186,000 111,800 Royal Bank of Scotland Group Plc, 5.75%, Ser B (United Kingdom) 2,615,002 Broker Services 11.39% 15,223,922 62,460 Bear Stearns Cos., Inc. (The), 5.72%, Ser F 3,229,182 102,700 Lehman Brothers Holdings, Inc., 5.67%, Depositary Shares, Ser D 5,032,300 90,400 Lehman Brothers Holdings, Inc., 5.94%, Depositary Shares, Ser C 4,483,840 90,000 Merrill Lynch & Co., Inc., 9.00%, Depositary Shares, Ser A 2,478,600 Diversified Operations 0.98% 1,309,761 48,420 Grand Metropolitan Delaware, L.P., 9.42%, Gtd Ser A 1,309,761 Finance 0.52% 693,000 12,000 SLM Corp., 6.97%, Ser A 693,000 Leasing Companies 1.40% 1,872,000 96,000 AMERCO, 8.50%, Ser A 1,872,000 Media 7.47% 9,981,351 200,453 Shaw Communications, Inc., 8.45%, Ser A (Canada) 5,003,307 199,361 Shaw Communications, Inc., 8.50% (Canada) 4,978,044 Oil & Gas 7.14% 9,537,244 45,278 Anadarko Petroleum Corp., 5.46%, Depositary Shares, Ser B 4,437,244 50,000 Devon Energy Corp., 6.49%, Ser A 5,100,000 Telecommunications 1.10% 1,474,650 50,850 Touch America Holdings, Inc., $6.875 1,474,650 See notes to financial statements. 6 FINANCIAL STATEMENTS SHARES ISSUER, DESCRIPTION VALUE Utilities 58.02% $77,523,450 225,000 Alabama Power Co., 5.20% 5,523,750 34,000 Baltimore Gas & Electric Co., 6.99%, Ser 1995 3,553,000 57,879 Boston Edison Co., 4.25% 4,420,509 23,161 Boston Edison Co., 4.78% 1,986,056 215,000 Coastal Finance I, 8.375% 4,259,150 156,400 El Paso Tennessee Pipeline Co., 8.25%, Ser A 6,099,600 200,000 Energy East Capital Trust I, 8.25% 5,394,000 42,000 Florida Power & Light Co., 6.75%, Ser U 4,386,375 23,638 Great Plains Energy, Inc., 4.35% 1,680,662 12,510 Great Plains Energy, Inc., 4.50% 949,509 100,000 Hawaiian Electric Industries Capital Trust I, 8.36% 2,637,000 13,000 Idaho Power Co., 7.07% 1,366,219 64,200 MCN Financing II, 8.625% 1,640,310 34,500 Monongahela Power Co., $7.73, Ser L 2,863,500 60,000 PSEG Funding Trust II, 8.75% 1,632,000 37,000 PSI Energy, Inc., 6.875% 3,718,500 26,800 Public Service Electric & Gas Co., 6.92% 2,749,680 204,000 Puget Energy, Inc., 7.45%, Ser II 5,144,880 210,000 Sierra Pacific Power Co., 7.80%, Ser 1 (Class A) 4,200,000 55,000 South Carolina Electric & Gas Co., 6.52% 5,665,000 185,000 Southern Union Financing I, 9.48% 4,680,500 39,800 TECO Capital Trust I, 8.50% 1,044,750 10,000 Virginia Electric & Power Co., $7.05 1,037,500 13,500 Xcel Energy, Inc., $4.11, Ser D 891,000 - --------------------------------------------------------------------------------------------------------------- COMMON STOCKS 44.02% $58,821,097 - --------------------------------------------------------------------------------------------------------------- (Cost $66,199,755) Telecommunications 0.00% 1,420 200,000 Touch America Holdings, Inc.* 1,420 Utilities 44.02% 58,819,677 150,380 Alliant Energy Corp. 3,308,360 180,000 Aquila, Inc. 608,400 140,300 CH Energy Group, Inc. 6,173,200 64,300 Dominion Resources, Inc. 3,980,170 116,000 DTE Energy Co. 4,279,240 40,000 Duke Energy Corp. 712,400 247,000 Energy East Corp. 5,540,210 126,000 KeySpan Corp. 4,420,080 44,000 NiSource, Inc. 879,120 215,000 Northeast Utilities 3,852,800 175,000 NSTAR 8,312,500 See notes to financial statements. 7 FINANCIAL STATEMENTS SHARES ISSUER, DESCRIPTION VALUE Utilities (continued) 42,500 Peoples Energy Corp. $1,758,650 52,500 Progress Energy, Inc. 2,334,150 69,000 Progress Energy, Inc.* (Contingent Value Obligation) (A) 6,900 216,900 Puget Energy, Inc. 4,865,067 246,600 Sierra Pacific Resources* 1,196,010 173,000 TECO Energy, Inc. 2,390,860 40,400 WPS Resources Corp. 1,664,480 164,000 Xcel Energy, Inc. 2,537,080 INTEREST PAR VALUE ISSUER, DESCRIPTION, MATURITY DATE RATE (000s OMITTED) VALUE - --------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS 9.56% $12,778,000 - --------------------------------------------------------------------------------------------------------------- (Cost $12,778,000) Oil & Gas 9.56% Chevron USA, Inc., Discount Commercial Paper, 10-01-03 0.82% $12,778 12,778,000 - --------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS 151.09% $201,897,727 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES, NET (51.09%) ($68,272,605) - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS 100.00% $133,625,122 - --------------------------------------------------------------------------------------------------------------- * Non-income producing security. (A) This security is valued in good faith under procedures established by the Board of Trustees. (R) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $2,625,000 or 1.96% of the Funds net assets as of September 30, 2003. Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer. The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund. See notes to financial statements. 8 FINANCIAL STATEMENTS - ----------- ASSETS AND LIABILITIES - ----------- September 30, 2003 This Statement of Assets and Liabilities is the Funds balance sheet. It shows the value of what the Fund owns, is due and owes. Youll also find the net asset value for each common share. - -------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------- Investments at value (cost $213,372,185) $201,897,727 Cash 4,701 Dividends receivable 476,248 Other assets 40,882 Total assets 202,419,558 - -------------------------------------------------------------------------------- LIABILITIES - -------------------------------------------------------------------------------- Payable to affiliates Management fee 166,363 Other 16,555 Other payables and accrued expenses 89,643 Total liabilities 272,561 Dutch Auction Rate Transferable Securities preferred shares Series A (DARTS), at value, unlimited number of shares of beneficial interest authorized with no par value, 685 shares issued, liquidation preference of $100,000 per share 68,521,875 - -------------------------------------------------------------------------------- NET ASSETS - -------------------------------------------------------------------------------- Common shares capital paid-in 141,943,091 Accumulated net realized loss on investments (79,377) Net unrealized depreciation of investments (11,474,458) Accumulated net investment income 3,235,866 Net assets applicable to common shares $133,625,122 - -------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE - -------------------------------------------------------------------------------- Based on 15,142,247 shares of beneficial interest outstanding - unlimited number of shares authorized with no par value $8.82 See notes to financial statements. 9 FINANCIAL STATEMENTS - ---------- OPERATIONS - ---------- For the year ended September 30, 2003 This Statement of Operations summarizes the Funds investment income earned and expenses incurred in operating the Fund. It also shows net gains (losses) for the period stated. - -------------------------------------------------------------------------------- INVESTMENT INCOME - -------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $4,330) $12,801,439 Interest 73,688 Total investment income 12,875,127 - -------------------------------------------------------------------------------- EXPENSES - -------------------------------------------------------------------------------- Investment management fee 1,615,720 Administration fee 194,349 DARTS auction fee 178,750 Federal excise tax 135,621 Auditing fee 53,800 Printing 48,805 Transfer agent fee 48,282 Custodian fee 41,103 Registration and filing fee 33,497 Miscellaneous 24,840 Trustees fee 13,307 Legal fee 2,991 Total expenses 2,391,065 Net investment income 10,484,062 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN - -------------------------------------------------------------------------------- Net realized gain on investments 510,730 Change in net unrealized appreciation (depreciation) of investments 7,579,644 Net realized and unrealized gain 8,090,374 Distributions to DARTS (906,591) Increase in net assets from operations $17,667,845 See notes to financial statements. 10 FINANCIAL STATEMENTS - ---------- CHANGES IN NET ASSETS - ---------- These Statements of Changes in Net Assets show how the value of the Funds net assets has changed during the last two periods. The difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and any increase due to the sales of common shares. YEAR YEAR ENDED ENDED 9-30-02 9-30-03 - -------------------------------------------------------------------------------- INCREASE IN NET ASSETS - -------------------------------------------------------------------------------- From operations Net investment income $11,737,244 $10,484,062 Net realized gain (loss) (331,608) 510,730 Change in net unrealized appreciation (depreciation) (22,050,939) 7,579,644 Distributions to DARTS (1,262,310) (906,591) Increase (decrease) in net assets resulting from operations (11,907,613) 17,667,845 Distributions to common shareholders From net investment income (9,713,863) (9,775,707) From Fund share transactions 350,897 1,062,637 - -------------------------------------------------------------------------------- NET ASSETS - -------------------------------------------------------------------------------- Beginning of period 145,940,926 124,670,347 End of period1 $124,670,347 $133,625,122 1 Includes accumulated net investment income of $3,297,911 and $3,235,866, respectively. See notes to financial statements. 11 FINANCIAL HIGHLIGHTS - ---------- FINANCIAL HIGHLIGHTS - ---------- COMMON SHARES The Financial Highlights show how the Funds net asset value for a share has changed since the end of the previous period. PERIOD ENDED 9-30-99 9-30-00 9-30-01 9-30-02 9-30-03 - ------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE - ------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $10.85 $9.91 $10.13 $9.74 $8.30 Net investment income1 0.83 0.85 0.83 0.78 0.69 Net realized and unrealized gain (loss) on investments (0.90) 0.23 (0.39) (1.49) 0.54 Distribution to DARTS (0.18) (0.21) (0.18) (0.08) (0.06) Total from investment operations (0.25) 0.87 0.26 (0.79) 1.17 Less distributions to common shareholders From net investment income (0.69) (0.65) (0.65) (0.65) (0.65) Net asset value, end of period $9.91 $10.13 $9.74 $8.30 $8.82 Per share market value, end of period $8.81 $8.25 $8.75 $9.15 $9.24 Total return at market value2 (%) (7.01) 1.19 13.79 12.03 8.91 - ------------------------------------------------------------------------------------------------------------- RATIOS AND SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (in millions) $148 $152 $146 $125 $134 Ratio of expenses to average net assets3 (%) 1.66 1.75 1.72 1.79 1.90 Ratio of net investment income to average net assets4 (%) 7.92 8.94 8.35 8.42 8.33 Portfolio turnover (%) 18 19 23 11 10 - ------------------------------------------------------------------------------------------------------------- SENIOR SECURITIES - ------------------------------------------------------------------------------------------------------------- Total value of DARTS outstanding (in millions) $68 $68 $68 $68 $69 Involuntary liquidation preference per unit (in thousands) $100 $100 $100 $100 $100 Approximate market value per unit (in thousands) $100 $100 $100 $100 $100 Asset coverage per unit5 $323,124 $315,176 $318,208 $280,462 $287,811 1 Based on the average of the common shares outstanding. 2 Assumes dividend reinvestment. 3 Ratios calculated on the basis of expenses applicable to the common shares relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of expenses would have been 1.15%, 1.18%, 1.18%, 1.20% and 1.23%, respectively. 4 Ratios calculated on the basis of net investment income applicable to common shares relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of net investment income would have been 5.52%, 6.03%, 5.72%, 5.65% and 5.39%, respectively. 5 Calculated by subtracting the Funds total liabilities from the Funds total assets and dividing such amount by the number of DARTS outstanding as of the applicable 1940 Act Evaluation Date, which may differ from the financial reporting date. See notes to financial statements. 12 - ---------- NOTES TO STATEMENTS - ---------- NOTE A Accounting policies John Hancock Patriot Premium Dividend Fund I (the Fund) is a diversified closed-end management investment company registered under the Investment Company Act of 1940. Significant accounting policies of the Fund are as follows: Valuation of investments Securities in the Funds portfolio are valued on the basis of market quotations, valuations provided by independent pricing services or at fair value as determined in good faith in accordance with procedures approved by the Trustees. Short-term debt investments maturing within 60 days are valued at amortized cost, which approximates market value. The Fund determines the net asset value of the common shares each business day. Investment transactions Investment transactions are recorded as of the date of purchase, sale or maturity. Net realized gains and losses on sales of investments are determined on the identified cost basis. Expenses The majority of expenses are directly identifiable to an individual fund. Expenses that are not readily identifiable to a specific fund will be allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of expense and the relative sizes of the funds. Federal income taxes The Fund qualifies as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required. For federal income tax purposes, the Fund has $55,954 of a capital loss carryforward available, to the extent provided by regulations, to offset future net realized capital gains. To the extent that such carryforward is used by the Fund, no capital gain distributions will be made. The entire amount of the loss carryforward expires September 30, 2010. Dividends, interest and distributions Dividend income on investment securities is recorded on the ex-dividend date or, in the case of some foreign securities, on the date thereafter when the Fund identifies the dividend. Interest income on investment securities is recorded on the accrual basis. Foreign income may be subject to foreign withholding taxes, which are accrued as applicable. The Fund records distributions to common and preferred shareholders from net investment income and net realized gains on the ex-dividend date. During the year ended September 30, 2003, the tax character of distributions paid was as follows: ordinary income $10,682,298. As of 13 September 30, 2003, the components of distributable earnings on a tax basis included $3,201,220 of undistributed ordinary income. Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Funds financial statements as a return of capital. Use of estimates The preparation of these financial statements, in accordance with accounting principles generally accepted in the United States of America, incorporates estimates made by management in determining the reported amount of assets, liabilities, revenues and expenses of the Fund. Actual results could differ from these estimates. NOTE B Management fee and transactions with affiliates and others The Fund has an investment management contract with John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of The Berkeley Financial Group, LLC. Under the investment management contract, the Fund pays a monthly management fee to the Adviser at an annual rate of 0.50% of the Funds average weekly net assets and the value attributable to the DARTS, plus 5.00% of the Funds weekly gross income. The Advisers total fee is limited to a maximum amount equal to 1.00% annually of the Funds average weekly net assets and the value attributable to the DARTS. For the year ended September 30, 2003, the advisory fee incurred did not exceed the maximum advisory fee allowed. The Fund has an administrative agreement with the Adviser under which the Adviser oversees the custodial, auditing, valuation, accounting, legal, stock transfer and dividend disbursing services and maintains Fund communications with the shareholders. The Fund pays the Adviser a monthly administration fee at an annual rate of approximately 0.10% of the Funds average weekly net assets plus the value attributable to the DARTS. Ms. Maureen Ford Goldfarb and Mr. John M. DeCiccio are directors and/or officers of the Adviser and/or its affiliates, as well as Trustees of the Fund. The compensation of unaffiliated Trustees is borne by the Fund. The unaffiliated Trustees may elect to defer for tax purposes their receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan. The Fund makes investments into other John Hancock funds, as applicable, to cover its liability for the deferred compensation. Investments to cover the Funds deferred compensation liability are recorded on the Funds 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. 14 NOTE C Fund share transactions Common shares This listing illustrates the Funds common shares, dividend reinvestments, reclassification of the Funds capital accounts and the number of common shares outstanding at the beginning and end of the last two periods, along with the corresponding dollar value. YEAR ENDED 9-30-02 YEAR ENDED 9-30-03 SHARES AMOUNT SHARES AMOUNT Beginning of period 14,979,601 $140,765,350 15,017,782 $141,016,976 Dividends reinvested 38,181 350,897 124,465 1,062,637 Reclassification of capital accounts - (99,271) - (136,522) End of period 15,017,782 $141,016,976 15,142,247 $141,943,091 Dutch Auction Rate Transferable Securities preferred shares Series A The Fund issued 685 shares of Dutch Auction Rate Transferable Securities preferred shares Series A (DARTS) in a public offering. The underwriting discount was recorded as a reduction of the capital of common shares. Dividends on the DARTS, which accrue daily, are cumulative at a rate that was established at the offering of the DARTS and has been reset every 49 days thereafter by an auction. Dividend rates on DARTS ranged from 1.00% to 1.86% during the year ended September 30, 2003. Accrued dividends on DARTS are included in the value of DARTS on the Funds Statement of Assets and Liabilities. The DARTS are redeemable at the option of the Fund, at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends on any dividend payment date. The DARTS are also subject to mandatory redemption at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends, if the Fund is in default on its asset coverage requirements with respect to the DARTS as defined in the Funds by-laws. If the dividends on the DARTS shall remain unpaid in an amount equal to two full years dividends, the holders of the DARTS, as a class, have the right to elect a majority of the Board of Trustees. In general, the holders of the DARTS and the common shareholders have equal voting rights of one vote per share, except that the holders of the DARTS, as a class, vote to elect two members of the Board of Trustees, and separate class votes are required on certain matters that affect the respective interests of the DARTS and common shareholders. NOTE D Investment transactions Purchases and proceeds from sales or maturities of securities, other than short-term securities and obligations of the U.S. government, during the year ended September 30, 2003, aggregated $18,791,613 and $24,409,059, respectively. The cost of investments owned on September 30, 2003, including short-term investments, for federal income tax purposes was $213,395,570. Gross unrealized appreciation and depreciation of investments aggregated $13,481,979 and $24,979,822, respectively, resulting in net unrealized depreciation of $11,497,843. The difference between book basis and tax basis net unrealized depreciation of investments is attributable primarily to the tax deferral of losses on wash sales. 15 NOTE E Reclassification of accounts During the year ended September 30, 2003, the Fund reclassified amounts to reflect a decrease in accumulated net realized loss on investments of $331, an increase in accumulated net investment income of $136,191 and a decrease in capital paid-in of $136,522. This represents the amount necessary to report these balances on a tax basis, excluding certain temporary differences, as of September 30, 2003. Additional adjustments may be needed in subsequent reporting periods. These reclassifications, which have no impact on the net asset value of the Fund, are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America, book and tax differences in accounting for deferred compensation and federal excise tax. The calculation of net investment income per share in the Funds Financial Highlights excludes these adjustments. 16 - --------- AUDITORS' REPORT - --------- Report of Deloitte & Touche LLP, Independent Auditors To The Board of Trustees and Shareholders of John Hancock Patriot Premium Dividend Fund I, We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of John Hancock Patriot Premium Dividend Fund I (the Fund) as of September 30, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years ended September 30, 2002 and 2003, and the financial highlights for each of the years in the five-year period ended September 30, 2003. These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at September 30, 2003, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of September 30, 2003, the results of its operations, the changes in its net assets and its financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts November 3, 2003 17 - ----------- TAX INFORMATION - ----------- Unaudited For federal income tax purposes, the following information is furnished with respect to the distributions of the Fund, if any, paid during its taxable year ended September 30, 2003. With respect to the ordinary dividends paid by the Fund for the fiscal year ended September 30, 2003, 85.93% of the dividends qualify for the corporate dividends-received deduction. The Fund hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for calendar year 2003. Shareholders will be mailed a 2003 U.S. Treasury Department Form 1099-DIV in January 2004. This will reflect the total of all distributions that are taxable for calendar year 2003. 18 INVESTMENT OBJECTIVE AND POLICY The Funds investment objective is to provide a high current income consistent with modest growth of capital for holders of its common shares of beneficial interest. The Fund will pursue its objective by investing in a diversified portfolio of dividend-paying preferred and common stocks. The Funds non-fundamental investment policy, with respect to the quality of ratings of its portfolio investments, was changed by a vote of the Funds Trustees on September 13, 1994. The new policy, which became effective October 15, 1994, stipulates that preferred stocks and debt obligations in which the Fund will invest will be rated investment-grade (at least BBB by S&P or Baa by Moodys) at the time of investment or will be preferred stocks of issuers of investment-grade senior debt, some of which may have speculative characteristics, or, if not rated, will be of comparable quality as determined by the Adviser. The Fund will invest in common stocks of issuers whose senior debt is rated investment grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the Adviser to be of comparable quality. The new policy supersedes the requirement that at least 80% of the Funds total assets consist of preferred stocks and debt obligations rated A or higher and dividend-paying common stocks whose issuers have senior debt rated A or higher. On November 20, 2001, the Funds Trustees approved the following investment policy investment restriction change, which became effective December 15, 2001. Under normal circumstances the Fund will invest at least 80% of its assets in dividend- paying securities. The Assets are defined as net assets including the liquidation preference amount of the DARTS plus borrowings for investment purposes. The Fund will notify shareholders at least 60 days prior to any change in this 80% investment policy. DIVIDEND REINVESTMENT PLAN The Fund offers its shareholders a Dividend Reinvestment Plan (the Plan), which offers the opportunity to earn compounded yields. Each holder of common shares will automatically have all distributions of dividends and capital gains reinvested by Mellon Investor Services, as Plan agent for the common shareholders (the Plan Agent), unless an election is made to receive cash. Holders of common shares who elect not to participate in the Plan will receive all distributions in cash, paid by check mailed directly to the shareholder of record (or if the common shares are held in street or other nominee name, then to the nominee) by the Plan Agent, as dividend disbursing agent. Shareholders whose shares are held in the name of a broker or a nominee should contact the broker or nominee to determine whether and how they may participate in the Plan. If the Fund declares a dividend payable either in common shares or in cash, non-participants will receive cash and participants in the Plan will receive the equivalent in common shares. If the market price of the common shares on the payment date of the dividend is equal to or exceeds their net asset value as determined on the payment date, participants will be issued common shares (out of authorized but unissued shares) at a value equal to the higher of net asset value or 95% of the market price. If the net asset value exceeds the market price of the common shares at such time, or if the Board of Trustees declares a dividend payable only in cash, the Plan Agent will, as agent for Plan participants, buy shares in the open market, on the New York Stock Exchange or elsewhere, for the participants accounts. Such purchases will be made promptly after the payable date for such dividend and, in any event, prior to the next ex-dividend date after 19 such date, except where necessary to comply with federal securities laws. If, before the Plan Agent has completed its purchases, the market price exceeds the net asset value of the common shares, the average per share purchase price paid by the Plan Agent may exceed the net asset value of the common shares, resulting in the acquisition of fewer shares than if the dividend had been paid in shares issued by the Fund. Each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of dividends and distributions. The cost per share of the shares purchased for each participants account will be the average cost, including brokerage commissions, of any shares purchased on the open market plus the cost of any shares issued by the Fund. There will be no brokerage charges with respect to common shares issued directly by the Fund. There are no other charges to participants for reinvesting dividends or capital gain distributions. Participants in the Plan may withdraw from the Plan at any time by contacting the Plan Agent by telephone, in writing or by visiting the Plan Agents Web site at www.melloninvestor.com. Such withdrawal will be effective immediately if received prior to a dividend record date; otherwise, it will be effective for all subsequent dividend record dates. When a participant withdraws from the Plan or upon termination of the Plan, as provided below, certificates for whole common shares credited to his or her account under the Plan will be issued and a cash payment will be made for any fraction of a share credited to such account. The Plan Agent maintains each shareholders account in the Plan and furnishes monthly written confirmations of all transactions in the accounts, including information needed by the shareholders for personal and tax records. The Plan Agent will hold common shares in the account of each Plan participant in non-certificated form in the name of the participant. Proxy material relating to the shareholders meetings of the Fund will include those shares purchased as well as shares held pursuant to the Plan. The reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable or required to be withheld on such dividends or distributions. Participants under the Plan will receive tax information annually. The amount of dividend to be reported on 1099-DIV should be (1) in the case of shares issued by the Fund, the fair market value of such shares on the dividend payment date and (2) in the case of shares purchased by the Plan Agent in the open market, the amount of cash used by the Plan Agent to purchase shares in the open market, including the amount of cash allocated to brokerage commissions paid on such purchases. Experience under the Plan may indicate that changes are desirable. Accordingly, the Fund reserves the right to amend or terminate the Plan as applied to any dividend or distribution paid subsequent to written notice of the change sent to all shareholders of the Fund at least 90 days before the record date for the dividend or distribution. The Plan may be amended or terminated by the Plan Agent after at least 90 days written notice to all shareholders of the Fund. All correspondence or additional information concerning the Plan should be directed to the Plan Agent, Mellon Bank, N.A., c/o Mellon Investor Services, P.O. Box 3338, South Hackensack, NJ 07606-1938 (telephone 1-800-852-0218). SHAREHOLDER COMMUNICATION AND ASSISTANCE If you have any questions concerning the Fund, we will be pleased to assist you. If you hold shares in your 20 own name and not with a brokerage firm, please address all notices, correspondence, questions or other communications regarding the Fund to the transfer agent at: Mellon Investor Services 85 Challenger Road Overpeck Centre Ridgefield Park, NJ 07660 Telephone 1-800-852-0218 If your shares are help with a brokerage firm, you should contact that firm, bank or other nominee for assistance. SHAREHOLDER MEETINGS In November 2002, the Board of Trustees adopted several amendments to the Funds by-laws, including provisions relating to the calling of a special meeting and requiring advance notice of shareholder proposals or nominees for Trustee. The advance notice provisions in the by-laws require shareholders to notify the Fund in writing of any proposal that they intend to present at an annual meeting of shareholders, including any nominations for Trustee, between 90 and 120 days prior to the first anniversary of the mailing date of the notice from the prior years annual meeting of shareholders. The notification must be in the form prescribed by the by-laws. The advance notice provisions provide the Fund and its Trustees with the opportunity to thoughtfully consider and address the matters proposed before the Fund prepares and mails its proxy statement to shareholders. Other amendments set forth the procedures that must be followed in order for a shareholder to call a special meeting of shareholders. Please contact the Secretary of the Fund for additional information about the advance notice requirements or the other amendments to the by-laws. On March 20, 2003, the Annual Meeting of the Fund was held to elect four Trustees and to ratify the actions of the Trustees in selecting independent auditors for the Fund. Proxies covering 13,794,599 common shares of beneficial interest were voted at the meeting. The common shareholders elected the following Trustees to serve until their respective successors are duly elected and qualified, with the votes tabulated as follows: WITHHELD FOR AUTHORITY - -------------------------------------------------------------------------------- Maureen Ford Goldfarb 13,569,200 225,399 Charles L. Ladner 13,481,391 313,208 John A. Moore 13,482,516 312,083 Proxies covering 685 DARTS were voted at the meeting. The preferred shareholders elected Ronald Dion to serve until his successor is duly elected and qualified, with the votes tabulated as follows: 495 FOR and 0 WITHHELD AUTHORITY. The common shareholders also ratified the Trustees selection of Deloitte & Touche LLP as the Funds independent auditor for the fiscal year ending September 30, 2003, with votes tabulated as follows: 13,545,840 FOR, 152,157 AGAINST and 97,097 ABSTAINING. 21 - ---------- TRUSTEES & OFFICERS - ---------- This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the Fund and execute policies formulated by the Trustees. independent Trustees NUMBER OF NAME, AGE TRUSTEE JOHN HANCOCK PRINCIPAL OCCUPATION(S) AND OTHER OF FUND FUNDS OVERSEEN DIRECTORSHIPS DURING PAST 5 YEARS SINCE1 BY TRUSTEE - --------------------------------------------------------------------------------------------------- James F. Carlin, Born: 1940 1988 31 - --------------------------------------------------------------------------------------------------- Director and Treasurer, Alpha Analytical Inc. (analytical laboratory) (since 1985); Part Owner and Treasurer, Lawrence Carlin Insurance Agency, Inc. (since 1995); Part Owner and Vice President, Mone Lawrence Carlin Insurance Agency, Inc. (since 1996); Director and Treasurer, Rizzo Associates (until 2000); Chairman and CEO, Carlin Consolidated, Inc. (management/investments) (since 1987); Director and Partner, Proctor Carlin & Co., Inc. (until 1999); Trustee, Massachusetts Health and Education Tax Exempt Trust (since 1993); Director of the following: Uno Restaurant Corp. (until 2001), Arbella Mutual (insurance) (until 2000), HealthPlan Services, Inc. (until 1999), Flagship Healthcare, Inc. (until 1999), Carlin Insurance Agency, Inc. (until 1999); Chairman, Massachusetts Board of Higher Education (until 1999). - --------------------------------------------------------------------------------------------------- William H. Cunningham, Born: 1944 1995 31 - --------------------------------------------------------------------------------------------------- Former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies (until 2001); Director of the following: The University of Texas Investment Management Company (until 2000), Hire.com (since 2000), STC Broadcasting, Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (since 2001), Adorno/ Rogers Technology, Inc. (since 2001), Pinnacle Foods Corporation (since 2001), rateGenius (since 2001), LaQuinta Motor Inns, Inc. (hotel management company) (until 1998), Jefferson-Pilot Corporation (diversified life insurance company) (since 1985), New Century Equity Holdings (formerly Billing Concepts) (until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures (until 2001), LBJ Foundation (until 2000), Golfsmith International, Inc. (until 2000), Metamor Worldwide (until 2000), AskRed.com (until 2001), Southwest Airlines (since 2000) and Introgen (since 2000); Advisory Director, Q Investments (since 2000); Advisory Director, Chase Bank (formerly Texas Commerce Bank Austin) (since 1988), LIN Television (since 2002) and WilTel Communications (since 2002). - --------------------------------------------------------------------------------------------------- Ronald R. Dion, Born: 1946 1998 31 - --------------------------------------------------------------------------------------------------- Chairman and Chief Executive Officer, R.M. Bradley & Co., Inc.; Director, The New England Council and Massachusetts Roundtable; Trustee, North Shore Medical Center; Director, BJs Wholesale Club, Inc. and a corporator of the Eastern Bank; Trustee, Emmanuel College. 22 NUMBER OF NAME, AGE TRUSTEE JOHN HANCOCK PRINCIPAL OCCUPATION(S) AND OTHER OF FUND FUNDS OVERSEEN DIRECTORSHIPS DURING PAST 5 YEARS SINCE1 BY TRUSTEE - --------------------------------------------------------------------------------------------------- Charles L. Ladner,2 Born: 1938 1992 31 - --------------------------------------------------------------------------------------------------- Chairman and Trustee, Dunwoody Village, Inc. (retirement services); Senior Vice President and Chief Financial Officer, UGI Corporation (Public Utility Holding Company) (retired 1998); Vice President and Director for AmeriGas, Inc. (retired 1998); Director of AmeriGas Partners, L.P. (until 1997) (gas distribution); Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association (since 2001). - --------------------------------------------------------------------------------------------------- John A. Moore,2 Born: 1939 2002 29 - --------------------------------------------------------------------------------------------------- President and Chief Executive Officer, Institute for Evaluating Health Risks (nonprofit institution) (until 2001); Senior Scientist, Sciences International (health research) (since 1998); Principal, Hollyhouse (consulting) (since 2000); Director, CIIT (nonprofit research) (since 2002). - --------------------------------------------------------------------------------------------------- Patti McGill Peterson,2 Born: 1943 2002 29 - --------------------------------------------------------------------------------------------------- Executive Director, Council for International Exchange of Scholars (since 1998); Vice President, Institute of International Education (since 1998); Senior Fellow, Cornell Institute of Public Affairs, Cornell University (until 1997); President Emerita of Wells College and St. Lawrence University; Director, Niagara Mohawk Power Corporation (electric utility). - --------------------------------------------------------------------------------------------------- Steven Pruchansky, Born: 1944 1992 31 - --------------------------------------------------------------------------------------------------- Chairman and Chief Executive Officer, Mast Holdings, Inc. (since 2000); Director and President, Mast Holdings, Inc. (until 2000); Managing Director, JonJames, LLC (real estate) (since 2001); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). - --------------------------------------------------------------------------------------------------- Norman H. Smith, Born: 1933 1992 31 - --------------------------------------------------------------------------------------------------- Lieutenant General, United States Marine Corps; Deputy Chief of Staff for Manpower and Reserve Affairs, Headquarters Marine Corps; Commanding General III Marine Expeditionary Force/3rd Marine Division (retired 1991). - --------------------------------------------------------------------------------------------------- John P. Toolan,2 Born: 1930 1993 31 - --------------------------------------------------------------------------------------------------- Director, The Smith Barney Muni Bond Funds, The Smith Barney Tax-Free Money Funds, Inc., Vantage Money Market Funds (mutual funds), The Inefficient-Market Fund, Inc. (closed-end investment company); Chairman, Smith Barney Trust Company of Florida (retired 1991); Director, Smith Barney, Inc., Mutual Management Company and Smith Barney Advisers, Inc. (investment advisers) (retired 1991); Senior Executive Vice President, Director and member of the Executive Committee, Smith Barney, Harris Upham & Co., Incorporated (investment bankers) (until 1991). 23 INTERESTED TRUSTEES3 NUMBER OF NAME, AGE TRUSTEE JOHN HANCOCK PRINCIPAL OCCUPATION(S) AND OTHER OF FUND FUNDS OVERSEEN DIRECTORSHIPS DURING PAST 5 YEARS SINCE1 BY TRUSTEE - --------------------------------------------------------------------------------------------------- John M. DeCiccio, Born: 1948 2001 52 - --------------------------------------------------------------------------------------------------- Trustee Executive Vice President and Chief Investment Officer, John Hancock Financial Services, Inc.; Director, Executive Vice President and Chief Investment Officer, John Hancock Life Insurance Company; Chairman of the Committee of Finance of John Hancock Life Insurance Company; Director, John Hancock Subsidiaries, LLC (Subsidiaries, LLC), Hancock Natural Resource Group, Independence Investment LLC, Declaration Management Research LLC, John Hancock Advisers, LLC (the Adviser), The Berkeley Financial Group, LLC (The Berkeley Group), John Hancock Funds, LLC (John Hancock Funds) and Massachusetts Business Development Corporation; Director, John Hancock Insurance Agency, Inc. (Insurance Agency, Inc.) (until 1999). - --------------------------------------------------------------------------------------------------- Maureen Ford Goldfarb, Born: 1955 2000 52 - --------------------------------------------------------------------------------------------------- Trustee, Chairman, President and Chief Executive Officer Executive Vice President, John Hancock Financial Services, Inc., John Hancock Life Insurance Company; Chairman, Director, President and Chief Executive Officer, the Adviser and The Berkeley Group; Chairman, Director, President and Chief Executive Officer, John Hancock Funds; Chairman, Director, President and Chief Executive Officer, Sovereign Asset Management Corporation (SAMCorp.); Director, Independence Investment LLC, Subsidiaries, LLC and Signature Services; Investment Company Institute Board of Governors (since 2002); Senior Vice President, MassMutual Insurance Co. (until 1999). PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES NAME, AGE POSITION(S) HELD WITH FUND OFFICER PRINCIPAL OCCUPATION(S) AND OF FUND DIRECTORSHIPS DURING PAST 5 YEARS SINCE - --------------------------------------------------------------------------------------------------- Richard A. Brown, Born: 1949 2000 - --------------------------------------------------------------------------------------------------- Senior Vice President and Chief Financial Officer Senior Vice President, Chief Financial Officer and Treasurer, the Adviser, John Hancock Funds and The Berkeley Group; Second Vice President and Senior Associate Controller, Corporate Tax Department, John Hancock Financial Services, Inc. (until 2001). - --------------------------------------------------------------------------------------------------- Thomas H. Connors, Born: 1959 1992 - --------------------------------------------------------------------------------------------------- Vice President and Compliance Officer Vice President and Compliance Officer, the Adviser and each of the John Hancock funds; Vice President, John Hancock Funds. - --------------------------------------------------------------------------------------------------- William H. King, Born: 1952 1992 - --------------------------------------------------------------------------------------------------- Vice President and Treasurer Vice President and Assistant Treasurer, the Adviser; Vice President and Treasurer of each of the John Hancock funds; Assistant Treasurer of each of the John Hancock funds (until 2001). 24 NAME, AGE POSITION(S) HELD WITH FUND OFFICER PRINCIPAL OCCUPATION(S) AND OF FUND DIRECTORSHIPS DURING PAST 5 YEARS SINCE - --------------------------------------------------------------------------------------------------- Susan S. Newton, Born: 1950 1992 - --------------------------------------------------------------------------------------------------- Senior Vice President, Secretary and Chief Legal Officer Senior Vice President, Secretary and Chief Legal Officer, SAMCorp., the Adviser and each of the John Hancock funds, John Hancock Funds and The Berkeley Group; Vice President, Signature Services (until 2000); Director, Senior Vice President and Secretary, NM Capital. The business address for all Trustees and Officers is 101 Huntington Avenue, Boston, Massachusetts 02199. The Statement of Additional Information of the Fund includes additional information about members of the Board of Trustees of the Fund and is available, without charge, upon request, by calling 1-800-225-5291. 1 Each Trustee serves until resignation, retirement age or until his or her successor is elected. 2 Member of Audit Committee. 3 Interested Trustees hold positions with the Funds investment adviser, underwriter and certain other affiliates. 25 26 27 28 - ----------- FOR YOUR INFORMATION - ----------- INVESTMENT ADVISER John Hancock Advisers, LLC 101 Huntington Avenue Boston, Massachusetts 02199-7603 CUSTODIAN The Bank of New York One Wall Street New York, New York 10286 TRANSFER AGENT FOR COMMON SHAREHOLDERS Mellon Investor Services 85 Challenger Road Overpeck Centre Ridgefield Park, New Jersey 07660 TRANSFER AGENT FOR DARTS Deutsche Bank Trust Company Americas 280 Park Avenue New York, New York 10017 LEGAL COUNSEL Hale and Dorr LLP 60 State Street Boston, Massachusetts 02109-1803 INDEPENDENT AUDITORS Deloitte & Touche LLP 200 Berkeley Street Boston, Massachusetts 02116-5022 STOCK SYMBOL Listed New York Stock Exchange: PDF For shareholder assistance refer to page 21 - -------------------------------------------------------------------------------- HOW TO CONTACT US - ---------- On the Internet www.jhfunds.com By regular mail Mellon Investor Services 85 Challenger Road Overpeck Centre Ridgefield Park, NJ 07660 Customer service representatives 1-800-852-0218 Portfolio commentary 1-800-344-7054 24-hour automated information 1-800-843-0090 TDD Line 1-800-231-5469 The Funds voting policies and procedures are available without charge, upon request: By phone 1-800-225-5291 On the Funds Web site www.jhfunds.com/proxy On the SECs Web site www.sec.gov - -------------------------------------------------------------------------------- 29 [LOGO] John Hancock - -------------- PRESORTED STANDARD U. S. Postage PAID MIS - -------------- 1-800-852-0218 1-800-843-0090 EASI-Line 1-800-231-5469 (TDD) www.jhfunds.com P100A 9/03 11/03
ITEM 2. CODE OF ETHICS. As of the end of the period, September 30, 2003, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Senior Financial Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Charles L. Ladner is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable at this time. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. See attached Exhibit "Proxy Voting Policies and Procedures". ITEM 8. [RESERVED] ITEM 9. 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 10. EXHIBITS. (a)(1) Code of Ethics for Senior Financial Officers is attached. (a)(2) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached. (b)(1) 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) Proxy Voting Policies and Procedures are attached. (d)(1) Contact person at the registrant November 20, 2003 EDGAR United States Securities and Exchange Commission Judiciary Plaza 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Form N-CSR John Hancock Patriot Premium Dividend Fund I File No. 811-5615 Gentlemen: Enclosed herewith for filing pursuant to the Investment Company Act of 1940 is Form N-CSR ("certified shareholder report"). If you have any questions or comments regarding this filing, please contact the undersigned at (617) 375-1513. Sincerely, /s/Alfred Ouellette Alfred Ouellette Senior Attorney and Assistant Secretary 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. By: - ------------------------------ Maureen Ford Goldfarb Chairman, President and Chief Executive Officer Date: November 19, 2003 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: - ------------------------------- Maureen Ford Goldfarb Chairman, President and Chief Executive Officer Date: November 19, 2003 By: - ----------------------- Richard A. Brown Senior Vice President and Chief Financial Officer Date: November 19, 2003 EX-99.CERT 3 certification.txt CERTIFICATION CERTIFICATION I, Maureen Ford Goldfarb, certify that 1. I have reviewed this report on Form N-CSR of the John Hancock Patriot Premium Dividend Fund I (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) 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) 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 (c) 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: _____________ _________________________ Maureen Ford Goldfarb Chairman, President and Chief Executive Officer CERTIFICATION I, Richard A. Brown, certify that 1. I have reviewed this report on Form N-CSR of the John Hancock Patriot Premium Dividend Fund I (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) 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) 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 (c) 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: _____________ _________________________ Richard A. Brown Senior Vice President and Chief Financial Officer EX-99.906 CERT 4 certification906.txt CERTIFICATION 906 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 Patriot Premium Dividend Fund I (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. - -------------------------------- Maureen Ford Goldfarb Chairman, President and Chief Executive Officer Dated: November 19, 2003 - ----------------------- Richard A. Brown Senior Vice President and Chief Financial Officer Dated: November 19, 2003 A signed original of this written statement, required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request. EX-99.CODE ETH 5 codeofethics.txt CODE OF ETHICS [J1]JOHN HANCOCK FUNDS CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS General Principles The Trustees of the registered investment companies (the "Funds" or each a "Fund") managed by John Hancock Advisers, LLC (the "Adviser") have adopted this code of ethics (this "Code") setting forth standards of ethics for the Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Senior Financial Officers") of each Fund. All Senior Financial Officers are charged with the duty to maintain the standards set forth below. No Code can address every situation that a Senior Financial Officer might face. As a guiding principle, Senior Financial Officers should strive to implement the spirit as well as the letter of applicable laws, rules and regulations, and to provide the type of clear and complete disclosure and information that Fund shareholders have a right to expect. Honest and Ethical Conduct Each Senior Financial Officer owes a duty to each Fund to act with integrity and honesty in the conduct of his or her duties and responsibilities. Each Senior Financial Officer shall comply with all applicable laws and accounting standards, while adhering to a high standard of business ethics. Avoidance of Conflicts of Interest Senior Financial Officers shall avoid any actual or apparent conflict of interest, direct or indirect, between personal and professional relationships. A Senior Financial Officer should not engage in personal, business or professional relationships or dealings which would impair his or her independence of judgment or adversely affect the performance of his or her duties in the best interests of each Fund and its shareholders. Any relationship or dealing that would present a conflict for a Senior Financial Officer could also present a conflict if it is related to a member of his or her immediate family. Disclosure Senior Financial Officers have a supervisory role with respect to the financial information included in reports filed with regulatory agencies and public disclosures by each Fund, and therefore have particular responsibilities in connection with those communications. * Each Senior Financial Officer shall familiarize himself or herself with the disclosure requirements applicable to each Fund, as well as the business and financial operations of each Fund. * Each Senior Financial Officer shall ensure that reasonable steps are taken within his or her areas of responsibility to promote full, fair, accurate, timely and understandable disclosure in all regulatory filings, as well as when communicating with each Fund's shareholders or the general public, in accordance with applicable law. * No Senior Financial Officer shall violate his or her responsibility to a Fund by knowingly and willfully misrepresenting, or causing others to misrepresent, facts about a Fund to others, including a Fund's independent auditors, governmental regulators or self-regulatory organizations. Compliance with Applicable Law It is each Fund's policy to comply with all applicable laws and governmental rules and regulations. It is the personal responsibility of each Senior Financial Officer to take reasonable steps to adhere to the standards and restrictions imposed by those laws, rules and regulations, including those relating to accounting and auditing matters. Compliance Procedures All Senior Financial Officers are responsible for ensuring that their own conduct complies with this Code. If a Senior Financial Officer is aware of any material transaction or relationship that could reasonably be expected to give rise to a conflict of interest or which might be viewed as potentially affecting his or her performance of Fund responsibilities, the Senior Financial Officer shall notify the Fund's Chief Legal Officer of this transaction or relationship. In addition, any Senior Financial Officer who becomes aware of any existing or potential violation of this Code shall notify the Chief Legal Officer promptly, who shall conduct an appropriate investigation. The Chief Legal Officer shall report any violation of this Code to the Audit Committee of the Fund. If a Senior Financial Officer believes that his or her responsibilities as an officer or employee of the Adviser are likely to materially compromise his or her objectivity or ability to perform the duties of his or her role as an officer of the Funds, he or she should consult with the Adviser's Chief Legal Officer, the Fund's Chief Legal Officer or outside counsel, or counsel to the independent Trustees of the Funds. Under appropriate circumstances, a Senior Financial Officer should also consider whether to present the matter to the Trustees of the Funds or a committee thereof. Anyone who violates the provisions of this Code, fails to report a known violation or refuses to cooperate in the investigation of any potential violation will be subject to disciplinary action, up to and including dismissal. Subject to applicable law, the Audit Committee may waive provisions of this Code. Other Policies and Procedures This Code does not supplant or supercede any other Fund, John Hancock Advisers, LLC or John Hancock Funds, LLC policy or procedure currently in effect or adopted in the future relating to conflicts of interest or business practices. Those policies and procedures are separate requirements applying to the Funds, John Hancock Advisers, LLC or John Hancock Funds, LLC associates generally, including Senior Financial Officers among others, and are not part of this Code. The Trustees of the Funds recognize that the Senior Financial Officers are also officers or employees of the Adviser. Furthermore, the Trustees of the Funds recognize that, subject to the Adviser's fiduciary duties to the Funds, the Senior Financial Officers will in the normal course of their duties (whether formally for the Funds or for the adviser, or for both) be involved in establishing policies and implementing decisions that will have different effects on the Adviser and the Funds. The Trustees of the Funds recognize that the participation of the Senior Financial Officers in such activities is inherent in the contract relationship between the Funds and the Adviser, and is consistent with the expectation of the Trustees of the performance by the Senior Financial Officers of their duties as officers of the Funds. Each Senior Financial Officer recognizes that, as an officer of a Fund, he or she has a duty to act in the best interests of the Fund and its shareholders. Date: May 20, 2003 Compliance 2003/compliance procedures/code of ethics for financial officer 4-03 [J1] 3 1 -----END PRIVACY-ENHANCED MESSAGE-----