2022-04-19DisciplinedValueFund_ClassACIR2R4R5R6_StatPro_8122
Prospectus
John
Hancock
U.S.
Growth Fund
U.S.
equity
August 1,
2022
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A |
C |
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R2 |
R4 |
R6 |
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JSGAX |
JSGCX |
JSGIX |
JSGRX |
JHSGX |
JSGTX |
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As with all
mutual funds, the Securities and Exchange Commission has not approved or
disapproved
these securities or passed upon the adequacy of this prospectus. Any
representation to the
contrary is a criminal offense.
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Fund
summary |
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The
summary section is a concise look at the investment objective,
fees and expenses, principal investment strategies,
principal risks, past performance, and investment
management. |
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Fund
details |
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More
about topics covered in the summary section, including
descriptions of the investment strategies and various
risk factors that investors should understand before
investing. |
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Your
account |
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How
to place an order to buy, sell, or exchange shares, as
well as information about the business policies and any
distributions that may be paid.For
more information See
back cover |
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John
Hancock U.S. Growth Fund
Investment
objective
To seek
long-term capital appreciation.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may
pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may
qualify for sales
charge discounts on Class A shares if you and your family invest, or agree to
invest in the future, at least $50,000 in the
John Hancock family of funds.
Intermediaries may have different policies and procedures regarding the
availability of front-end sales charge waivers or contingent deferred
sales
charge (CDSC) waivers (See Appendix 1 - Intermediary sales charge waivers, which
includes information about specific sales charge waivers applicable
to the intermediaries identified therein). More information about these and
other discounts is available from your financial professional and on pages
22 to
24 of the
prospectus under “Sales charge reductions and waivers” or pages 102 to
107 of the
fund’s Statement of Additional Information
under “Sales Charges on Class A and Class C
Shares.”
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Shareholder
fees (%)
(fees paid directly from your investment) |
A |
C |
I |
R2 |
R4 |
R6 |
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Maximum
front-end sales charge (load) on purchases, as a % of purchase
price |
5.00 |
None |
None |
None |
None |
None |
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Maximum
deferred sales charge (load) as a % of purchase or sale price,
whichever
is less |
1.00
(on
certain purchases,
including
those of $1
million or more) |
1.00 |
None |
None |
None |
None |
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Small
account fee (for fund account balances under $1,000) ($) |
20 |
20 |
None |
None |
None |
None |
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Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of
the value of your investment) |
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Management
fee |
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Distribution
and service (Rule 12b-1) fees |
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Other
expenses |
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Service
plan fee |
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Additional
other expenses |
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Total
other expenses |
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Total
annual fund operating expenses |
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Contractual
expense reimbursement |
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Total
annual fund operating expenses after expense
reimbursements |
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| 1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
| 2 |
The
advisor contractually agrees to waive a portion of its management fee
and/or reimburse expenses for the fund and certain other John Hancock
funds according to an
asset level breakpoint schedule that is based on the aggregate net assets
of all the funds participating in the waiver or reimbursement. This waiver
is allocated proportionally
among the participating funds. During its most recent fiscal year, the
fund’s reimbursement amounted to 0.01% of the fund’s average daily net
assets. This
agreement expires on July
31, 2024,
unless renewed by mutual agreement of the fund and the advisor based upon
a determination that this is appropriate under the
circumstances at that
time. |
| 3 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on July 31, 2023
unless renewed by mutual agreement
of the fund and the distributor based upon a determination that this is
appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then, except as shown below, assuming you sell all of
your shares at the end of those periods. The example assumes a 5% average annual
return and that fund expenses will not change over the periods.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
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Expenses
($) |
A |
C |
I |
R2 |
R4 |
R6 |
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Sold
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Not
Sold
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1
year |
593 |
274 |
174 |
73 |
112 |
87 |
61 |
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Expenses
($) |
A |
C |
I |
R2 |
R4 |
R6 |
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Sold |
Not
Sold |
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3
years |
791 |
539 |
539 |
227 |
352 |
295 |
194 |
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5
years |
1,004 |
928 |
928 |
395 |
611 |
520 |
339 |
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10
years |
1,619 |
1,821 |
1,821 |
883 |
1,351 |
1,168 |
761 |
Portfolio
turnover
The fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected
in annual fund operating expenses or in the example, affect the fund’s
performance. During its most recent fiscal year, the fund’s portfolio
turnover
rate was 91% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund invests at least 80% of its net assets (plus
any borrowings for investment purposes) in equity investments that are
tied economically to the United States. The fund considers an equity investment
to be “tied economically” to the United States if, at the time of purchase:
(i) its issuer is organized under the laws of the United States or under the
laws of a state within the United States or in an issuer that maintains
its principal place of business in the United States; (ii) it is traded
principally in the United States; or (iii) its issuer derived at least 50% of
its revenues or
profits from goods produced or sold, investments made, or services performed in
the United States, or has at least 50% of its assets in the United
States. The manager seeks to achieve the fund’s investment objective by
investing in equity investments that the manager believes, as a portfolio,
will provide higher returns than the Russell 1000 Growth
Index.
The
manager’s investment process begins with the broad universe of equity securities
included in US equity indices, along with other ideas that come from a
combination of company meetings, investment conferences, field trips and
industry analysis. Investments in equity securities include common stocks and
other stock-related securities such as preferred stocks, convertible securities,
depositary receipts, exchange-traded funds, and exchange-traded
equity real estate investment trusts (REITs). The fund may invest significantly
in securities of companies in certain sectors, and may therefore
experience greater volatility than funds investing in a broader range of sectors
and may be more susceptible to the impact of market, economic,
regulatory, and other factors affecting that
sector.
The manager
focuses on members of the investable universe that exhibit high quality free
cash flow margins (i.e., cash generated after expenses to support
operations and maintain capital assets), capital return (i.e., dividends and
share buybacks), and revenue growth higher than a certain minimum
threshold. The manager then monitors and ranks securities based on their
relative attractiveness across this universe, based on quality, growth,
valuation, capital returns, and earnings revisions. For stocks
that compare well in this screening process, further detailed analysis is
conducted.
Regular meetings and discussions with company management are another input into
the portfolio decision making process.
Securities
considered for purchase are attractive on a majority of the metrics (quality,
growth, valuation, capital returns, and earnings revisions), and
have a
positive catalyst such as accelerating earnings or revenue growth. Due to its
active investment strategy, the fund may buy and sell securities frequently.
This may result in higher transaction costs and more capital gains tax
liabilities than a fund with a buy and hold
strategy.
The fund is
a non-diversified fund, which means that it may invest in a smaller number of
issuers than a diversified fund and may invest more of its assets in
the securities of a single issuer.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
The fund’s
main risks are listed below in alphabetical order, not in order of importance.
Before
investing, be sure to read the additional descriptions of these
risks beginning on page 7
of the prospectus.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Exchange-traded
funds (ETFs) risk. The risks
of owning shares of an ETF include the risks of owning the underlying securities
the ETF holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its net asset
value (NAV). A fund
bears ETF fees and expenses indirectly.
High
portfolio turnover risk. Trading
securities actively and frequently can increase transaction costs (thus lowering
performance) and taxable distributions.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Real
estate investment trust (REIT)
risk. REITs,
pooled investment vehicles that typically invest in real estate directly or in
loans collateralized by real
estate, carry risks associated with owning real estate, including the potential
for a decline in value due to economic or market
conditions.
Real
estate securities risk. Securities
of companies in the real estate industry carry risks associated with owning real
estate, including the potential for a
decline in value due to economic or market
conditions.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors. To the
extent that a fund invests in securities of companies in the
information technology sector, the fund may be significantly affected by rapid
obsolescence, short product cycles, competition from new market entrants,
and heightened cybersecurity risk, among other factors, impacting that
sector.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
Past
performance (before and after taxes) does not indicate future
results. All
figures assume dividend reinvestment. Performance information is updated
daily, monthly, and quarterly and may be obtained at our website,
jhinvestments.com, or by
calling
800-225-5291 (Class A and Class C), Monday to
Thursday, 8:00 A.M.—7:00
P.M., and
Friday, 8:00 A.M.—6:00
P.M., Eastern
time, or 888-972-8696 (Class I, Class R2, Class R4, and Class R6) between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business days.
A note
on performance
Class A
shares commenced operations on December 20, 2011. Class R2, Class R4, and Class
R6 shares commenced operations on March 27, 2015. Returns
shown prior to a class’s commencement date are those of Class A shares, except
that they do not include sales charges and would be lower if they did.
Returns for Class R2, Class R4, and Class R6 shares would have been
substantially similar to returns of Class A shares because each share
class is
invested in the same portfolio of securities and returns would differ only to
the extent that expenses of the classes are different. To the extent
expenses of
a class would have been higher than expenses of Class A shares for the periods
shown, performance would have been lower.
Prior to
close of business on September 28, 2018, the fund was managed by a different
subadvisor pursuant to different strategies, and thus, the performance
presented prior to such date should not be attributed to the current subadvisor,
Wellington Management Company LLP (“Wellington Management”).
The fund’s performance shown below might have differed materially if Wellington
Management had managed the fund prior to close of business on
September 28, 2018.
Please note
that after-tax returns (shown for Class A shares only)
reflect the
highest individual federal marginal income-tax rate in effect as of the date
provided
and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class A
(sales
charges are not reflected in the bar chart and returns would have been lower if
they were)
Year-to-date
total return. The fund’s
total return for the six months ended June 30,
2022, was
-25.86%.
Best
quarter:
Q2
2020,
26.11%
Worst
quarter:
Q4
2018,
-14.50%
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Average
annual total returns (%)—as of 12/31/21
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Class
A (before
tax) |
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after
tax on distributions |
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after
tax on distributions, with sale |
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Class
C |
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Class
I |
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Class
R2 |
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Class
R4 |
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Class
R6 |
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Russell
1000 Growth Index (reflects no deduction for fees, expenses, or
taxes) |
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Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Wellington
Management Company LLP
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
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John
A. Boselli, CFA
Senior
Managing Director and Equity Portfolio Manager
Managed
the fund since 2018 |
Timothy
N. Manning
Senior
Managing Director and Equity Portfolio Manager
Managed
the fund since 2022 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class A and Class C shares is $1,000 ($250
for group investments), except that there is no minimum for certain
group retirement plans, certain fee-based or wrap accounts, or certain other
eligible investment product platforms. The minimum initial investment
requirement for Class I shares is $250,000, except that the fund may waive the
minimum for any category of investors at the fund’s sole discretion.
There are no minimum initial investment requirements for Class R2 or Class R4
shares. The minimum initial investment requirement for Class R6
shares is $1 million, except that there is no minimum for: qualified and
nonqualified plan investors; certain eligible qualifying investment product
platforms; Trustees, employees of the advisor or its affiliates, employees of
the subadvisor, members of the fund’s portfolio management team and the
spouses and children (under age 21) of the aforementioned. There are no
subsequent minimum investment requirements for any of these share
classes.
Class A,
Class C, Class I and Class R6 shares may be redeemed on any business day by
mail: John Hancock Signature Services, Inc., P.O. Box 219909,
Kansas City, MO 64121-9909; or for most account types through our website:
jhinvestments.com; or by telephone: 800-225-5291 (Class A and Class
C); 888-972-8696 (Class I and Class R6). Class R2
and Class R4 shares may be redeemed on any business day by contacting your
retirement
plan administrator or recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
Principal
investment strategies
The fund’s
investment objective is to seek long-term capital appreciation. The Board
of Trustees can change the fund’s investment objective and strategy
without shareholder approval. The fund will provide written notice to
shareholders at least 60 days prior to a change in its 80% investment
policy.
Under
normal market conditions, the fund invests at least 80% of its net assets
(plus any borrowings for investment purposes) in equity investments
that are tied economically to the United States. The fund considers
an equity investment to be “tied economically” to the United States if,
at the time of purchase: (i) its issuer is organized under the laws of the
United States or under the laws of a state within the United States or
in an issuer that maintains its principal place of business in the United
States; (ii) it is traded principally in the United States; or (iii) its
issuer
derived at least 50% of its revenues or profits from goods produced or
sold, investments made, or services performed in the United
States, or has at least 50% of its assets in the United States. The manager
seeks to achieve the fund’s investment objective by investing in equity
investments that the manager believes, as a portfolio, will provide higher
returns than the Russell 1000 Growth Index.
The
manager’s investment process begins with the broad universe of securities
included in US equity indices, along with other ideas that come from a
combination of company meetings, investment conferences,
field trips and
industry analysis. Investments
in equity securities
include common stocks and other stock-related securities such as
preferred stocks, convertible securities, depositary receipts, exchange-traded
funds, and exchange-traded equity real estate investment
trusts (REITs). The fund
may invest significantly in securities of
companies in certain sectors, and may therefore experience greater volatility
than funds investing in a broader range of sectors and may be more
susceptible to the impact of market, economic, regulatory, and other
factors affecting that sector. The manager focuses on members of the
investable universe that exhibit high quality free cash flow margins
(i.e., cash
generated after expenses to support operations and maintain capital
assets), capital return (i.e., dividends and share buybacks), and revenue
growth higher than a certain minimum threshold. Free cash flow is defined
as the cash that is available to a company after paying out the money
needed to maintain or expand its operations. For all companies remaining
in the subuniverse, the manager ranks securities on a relative basis
across the following metrics:
(a)
Quality: Companies with high and improving free-cash-flow margins and the
ability to generate attractive returns on capital employed;
(b) Growth:
Companies that generate high organic revenue growth (revenue
growth not obtained through acquisitions) above global GDP growth;
(c)
Valuation: Companies trading below fair value, based on a discounted
free cash
flow model utilizing proprietary research and analysis;
(d) Capital
Returns: Companies with high dividend payouts and share repurchase
programs, based on deployment of free cash flow; and (e) Earnings
Revisions: Companies
with improving earnings expectations over the
next 12-18 months that are not yet fully acknowledged and reflected
in broker estimates.
The manager
monitors and ranks securities based on their relative attractiveness
across this universe. For stocks that compare well in this screening
process, further detailed analysis is conducted. Regular meetings
and discussions with company management are another input into the
portfolio decision making process. Securities considered for purchase
are attractive on a majority of the metrics (Quality, Growth, Valuation,
Capital Returns, and Earnings Revisions), and have a
positive catalyst
such as accelerating earnings or revenue growth.
The manager
sells securities when growth or quality metrics deteriorate, valuation
upside declines, allocation to dividends or share repurchases changes, or
earnings revisions worsen.
Securities may also be sold if overall
attractiveness relative to other stocks in the universe deteriorates.
Due to its active investment strategy, the fund may buy and sell
securities frequently. This may result in higher transaction costs and
more
capital gains tax liabilities than a fund with a buy and hold
strategy.
The fund is
a non-diversified fund, which means that it may invest in a smaller
number of issuers than a diversified fund and may invest more of its assets
in the securities of a single issuer.
The manager
considers
environmental,
social, and/or governance (ESG) factors,
alongside other relevant factors, as part of its investment process.
ESG factors may include, but are not limited to, matters regarding
board diversity, climate change policies, and supply chain and human
rights policies. The ESG
characteristics utilized in the fund’s investment
process may change over time and one or more characteristics
may not be relevant with respect to all issuers that are eligible
fund investments.
The fund
may invest in cash or money market instruments for the purpose of
meeting redemption requests or making other anticipated cash
payments.
The fund
may deviate from its principal investment strategies during transition
periods, which may include the reassignment of portfolio management,
a change in investment objective or strategy, a reorganization
or liquidation, or the occurrence of large inflows or outflows.
Temporary
defensive investing
The fund
may invest up to 100% of its assets in cash, money market instruments,
or other investment-grade short-term securities for the purpose of
protecting the fund in the event the manager determines that market,
economic, political, or other conditions warrant a defensive posture.
To the
extent that the fund is in a defensive position, its ability to achieve
its
investment objective will be limited.
Securities
lending
The fund
may lend its securities so long as such loans do not represent more than
33⅓% of the fund’s total assets. The borrower will provide collateral
to the lending portfolio so that the value of the loaned security will be
fully collateralized. The collateral may consist of cash, cash equivalents,
or securities issued or guaranteed by the U.S. government or its
agencies or instrumentalities. The borrower must also agree to increase
the collateral if the value of the loaned securities increases. As with other
extensions of credit, there are risks of delay in recovery or
even loss
of rights in the collateral should the borrower of the securities fail
financially.
Principal
risks of investing
An
investment in the fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government
agency. The fund’s shares will go up and down in price, meaning
that you could lose money by investing in the fund. Many factors
influence a fund’s performance. The fund’s
investment strategy may not
produce the intended results.
Instability
in the financial markets has led many governments, including the U.S.
government, to take a number of unprecedented actions designed to
support certain financial institutions and segments of the financial
markets that have experienced extreme volatility and, in some cases, a
lack of liquidity. Federal, state, and other governments, and their
regulatory agencies or self-regulatory organizations, may take actions
that affect the regulation of the instruments in which the fund invests, or
the issuers of such instruments, in ways that are unforeseeable.
Legislation or regulation may also change the way in which the
fund itself is regulated. Such legislation or regulation could limit or
preclude the fund’s ability to achieve its investment objective. In addition,
political events within the United States and abroad could negatively
impact financial markets and the fund’s performance.
Governments
or their agencies may also acquire distressed assets from financial
institutions and acquire ownership interests in those institutions.
The implications of government ownership and disposition of these
assets are unclear, and such a program may have positive or negative
effects on the liquidity, valuation, and performance of the fund’s portfolio
holdings. Furthermore, volatile financial markets can expose the fund to
greater market and liquidity risk, increased transaction costs, and
potential difficulty in valuing portfolio instruments held by the fund.
The
principal risks of investing in the fund are summarized in its fund summary
above. Below are descriptions of the main factors that may play a role
in shaping the fund’s overall risk profile. The descriptions appear in
alphabetical order, not in order of importance. For further details
about fund risks, including additional risk factors that are not discussed
in this prospectus because they are not considered primary factors,
see the fund’s Statement of Additional Information (SAI).
Economic
and market events risk
Events in
certain sectors historically have resulted, and may in the future result, in
an unusually high degree of volatility in the financial markets, both
domestic and foreign. These events have included, but are not limited to:
bankruptcies, corporate restructurings, and other similar events;
governmental efforts to limit short selling and high frequency trading;
measures to address U.S. federal and state budget deficits; social,
political, and economic instability in Europe; economic stimulus by the
Japanese central bank; dramatic changes in energy prices and currency
exchange rates; and China’s economic slowdown. Interconnected
global economies and financial markets increase the possibility
that conditions in one country or region might adversely impact
issuers in a different country or region. Both domestic and foreign
equity markets have experienced increased volatility and turmoil, with
issuers that have exposure to the real estate, mortgage, and credit
markets
particularly affected. Financial
institutions could
suffer losses as interest
rates rise or economic conditions deteriorate.
In
addition, relatively high market volatility and reduced liquidity in credit
and
fixed-income markets may adversely affect many issuers worldwide. Actions
taken by the U.S. Federal Reserve (Fed) or foreign central banks to
stimulate or stabilize economic growth, such as interventions in currency
markets, could cause high volatility in the equity and fixed-income
markets. Reduced liquidity may result in less money being available
to purchase raw materials, goods, and services from emerging markets,
which may, in turn, bring down the prices of these economic staples. It
may also result in emerging-market issuers having more difficulty
obtaining financing, which may, in turn, cause a decline in their securities
prices.
In
addition, while interest rates have been historically low in
recent years in the
United States and abroad, any decision by the Fed to adjust the target
Fed funds
rate, among other factors, could cause markets to experience
continuing high volatility. A significant increase in interest rates may
cause a decline in the market for equity securities. Also, regulators
have expressed concern that rate increases may contribute to price
volatility. These events and the possible resulting market volatility
may have an
adverse effect on the fund.
Political
turmoil within the United States and abroad may also impact the fund.
Although the U.S. government has honored its credit obligations,
it remains possible that the United States could default on its
obligations. While it is impossible to predict the consequences of such an
unprecedented event, it is likely that a default by the United States
would be highly disruptive to the U.S. and global securities markets and
could significantly impair the value of the fund’s investments.
Similarly, political events within the United States at times have
resulted, and may in the future result, in a shutdown of government services,
which could negatively affect the U.S. economy, decrease the value of
many fund investments, and increase uncertainty in or impair the
operation of the U.S. or other securities markets. In recent
years, the U.S.
renegotiated many of its
global trade relationships and imposed or
threatened
to impose significant import tariffs. These actions could lead to price
volatility and overall declines in U.S. and global investment markets.
Uncertainties
surrounding the sovereign debt of a number of European Union (EU)
countries and the viability of the EU have disrupted and may in the
future disrupt markets in the United States and around the world. If one or
more countries leave the EU or the EU dissolves, the world’s securities
markets likely will be significantly disrupted. On January 31, 2020, the
United Kingdom (UK) left the EU, commonly referred to as “Brexit,”
and the UK ceased to be a member of the EU. Following a transition
period during which the EU and the UK Government engaged in a series
of negotiations regarding the terms of the UK’s future relationship
with the EU, the EU and the
UK
Government signed an agreement
on December 30, 2020 regarding the economic relationship between the
UK and the EU. This agreement became effective on a provisional
basis on January 1, 2021 and
formally entered into force on May 1,
2021. While the full impact of Brexit is unknown, Brexit has already
resulted in volatility in European and global markets. There
remains
significant market uncertainty regarding Brexit’s ramifications, and the
range and potential implications of possible political, regulatory, economic,
and market outcomes are difficult to predict. This uncertainty
may affect
other countries in the EU and elsewhere, and may cause volatility
within the EU, triggering prolonged economic downturns in certain
countries within the EU. Despite the
influence of the lockdowns, and the
economic bounce back, Brexit has had a material impact on the UK’s
economy. Additionally, trade between the UK and the EU did not benefit
from the global rebound in trade in 2021, and remained at the very low
levels experienced at the start of the coronavirus
(COVID-19) pandemic
in 2020,
highlighting Brexit’s potential long-term effects on the UK
economy.
In
addition, Brexit may create additional and substantial economic stresses
for the UK, including a contraction of the UK economy and price volatility
in UK stocks, decreased trade, capital outflows, devaluation of the British
pound, wider corporate bond spreads due to uncertainty and declines in
business and consumer spending as well as foreign direct investment.
Brexit may also adversely affect UK-based financial firms that have
counterparties in the EU or participate in market infrastructure (trading
venues, clearing houses, settlement facilities) based in the EU. Additionally,
the spread of the coronavirus (COVID-19) pandemic is likely to continue
to stretch the resources and deficits of many countries in the EU and
throughout the world, increasing the possibility that countries may be
unable to make timely payments on their sovereign debt. These events and
the resulting market volatility may have an adverse effect on the
performance of the fund.
A
widespread health crisis such as a global pandemic could cause substantial
market volatility, exchange trading suspensions and closures,
which may lead to less liquidity in certain instruments, industries,
sectors or the markets generally, and may ultimately affect fund
performance. For example, the coronavirus
(COVID-19) pandemic has
resulted and may
continue to result in
significant disruptions to global
business activity
and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs,
export
controls and supply chain disruption, among others. The impact
of a health
crisis and other epidemics and pandemics that may arise in the future,
could affect the global economy in ways that cannot necessarily
be foreseen at the present time. A health crisis may exacerbate
other pre-existing political, social and economic risks. Any such impact
could adversely affect the fund’s performance, resulting in losses to
your investment.
The United
States responded
to the coronavirus
(COVID-19) pandemic and
resulting economic distress with fiscal and monetary stimulus packages.
In late March 2020, the government passed the Coronavirus Aid,
Relief, and Economic Security Act, a stimulus package providing for over $2.2
trillion in resources to small businesses, state and local governments,
and individuals adversely
impacted by the coronavirus
(COVID-19)
pandemic. In late December 2020, the government also passed a
spending bill that included $900 billion in stimulus relief for the
coronavirus
(COVID-19) pandemic.
Further, in March 2021, the government
passed the American Rescue Plan Act of 2021, a $1.9 trillion
stimulus bill to accelerate the United States’ recovery from the economic
and health effects of the coronavirus
(COVID-19) pandemic.
In addition,
in mid-March 2020 the Fed cut interest rates to historically low levels and
promised unlimited and open-ended quantitative easing, including
purchases of corporate and municipal government bonds. The Fed also
enacted various programs to support liquidity operations and funding in
the financial markets, including expanding its reverse
repurchase
agreement operations, adding $1.5 trillion of liquidity to the banking
system, establishing swap lines with other major central banks to provide
dollar funding, establishing a program to support money market
funds, easing various bank capital buffers, providing funding backstops
for businesses to provide bridging loans for up to four years, and
providing funding to help credit flow in asset-backed securities markets.
The Fed also extended
credit to
small- and medium-sized businesses.
When the
Fed “tapers” or reduces the amount of securities it purchases pursuant to
quantitative easing, and/or raises the federal funds rate, there is a
risk that interest rates will rise, which could expose fixed-income
and related markets to heightened volatility and could cause the
value of a fund’s investments, and the fund’s net asset value (NAV), to
decline, potentially suddenly and significantly. As a result, the fund may
experience high redemptions and, as a result, increased portfolio
turnover, which could increase the costs that the fund incurs and may
negatively impact the fund’s performance.
Political
and military events, including in Ukraine,
North
Korea, Russia,
Venezuela,
Iran, Syria, and other areas of the Middle East, and nationalist
unrest in Europe and South America, also may cause market disruptions.
As a result
of continued political tensions and armed conflicts, including the Russian
invasion of Ukraine commencing in February of 2022, the extent and
ultimate result of which are unknown at this time, the United States and
the EU, along with the regulatory bodies of a number of countries,
have imposed economic sanctions on certain Russian corporate
entities and individuals, and certain sectors of Russia’s economy,
which may result in, among other things, the continued devaluation
of Russian currency, a downgrade in the country’s credit rating,
and/or a decline in the value and liquidity of Russian securities, property or
interests. These sanctions could also result in the immediate freeze of
Russian securities and/or funds invested in prohibited assets, impairing
the ability of a fund to buy, sell, receive or deliver those securities
and/or assets. These sanctions or the threat of additional sanctions
could also result in Russia taking counter measures or retaliatory
actions, which may further impair the value and liquidity of Russian
securities. The United States and other nations or international organizations
may also impose additional economic sanctions or take other
actions that may adversely affect Russia-exposed issuers and companies
in various sectors of the Russian economy. Any or all of these potential
results could lead Russia’s economy into a recession. Economic
sanctions and other actions against Russian institutions, companies,
and individuals resulting from the ongoing conflict may also have a
substantial negative impact on other economies and securities markets
both regionally and globally, as well as on companies with operations
in the conflict region, the extent to which is unknown at this time. The
United States and the EU have also imposed similar sanctions on Belarus
for its support of Russia’s invasion of Ukraine. Additional sanctions
may be imposed on Belarus and other countries that support Russia. Any
such sanctions could present substantially similar risks as those
resulting from the sanctions imposed on Russia, including substantial
negative impacts on the regional and global economies and securities
markets.
In
addition, there is a risk that the prices of goods and services in the
United
States and many foreign economies may decline over time,
known as
deflation. Deflation may have an adverse effect on stock prices and
creditworthiness and may make defaults on debt more likely. If a country’s
economy slips into a deflationary pattern, it could last for a prolonged
period and may be difficult to reverse. Further,
there is a risk that the
present value of assets or income from investments will be less in the
future, known as inflation. Inflation rates may change frequently and
drastically as a result of various factors, including unexpected shifts
in the
domestic or global economy, and a fund’s investments may be affected,
which may reduce a fund’s performance. Further, inflation may lead to the
rise in interest rates, which may negatively affect the value of debt
instruments held by the fund, resulting in a negative impact on a fund’s
performance. Generally, securities issued in emerging markets are subject
to a greater risk of inflationary or deflationary forces, and more
developed markets are better able to use monetary policy to normalize
markets.
Equity
securities risk
Common and
preferred stocks represent equity ownership in a company. Stock
markets are volatile. The price of equity securities will fluctuate,
and can
decline and reduce the value of a fund investing in equities. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic conditions. The value of
equity securities purchased by a fund could decline if the financial
condition of the companies in which the fund is invested declines,
or if overall market and economic conditions deteriorate. An issuer’s
financial condition could decline as a result of poor management decisions,
competitive pressures, technological obsolescence, undue reliance on
suppliers, labor issues, shortages, corporate restructurings, fraudulent
disclosures, irregular and/or unexpected trading activity among
retail investors, or other factors. Changes in the financial condition
of a single issuer can impact the market as a whole.
Even a fund
that invests in high-quality, or blue chip, equity securities, or securities
of established companies with large market capitalizations (which
generally have strong financial characteristics), can be negatively impacted by
poor overall market and economic conditions. Companies with large
market capitalizations may also have less growth potential than
smaller companies and may be less able to react quickly to changes in
the marketplace.
The fund
generally does not attempt to time the market. Because of its exposure to
equities, the possibility that stock market prices in general will
decline over short or extended periods subjects the fund to unpredictable
declines in the value of its investments, as well as periods of poor
performance.
| |
Growth
investment style risk.
Certain equity securities (generally referred
to as growth securities) are purchased primarily because a manager
believes that these securities will experience relatively rapid
earnings growth. Growth securities typically trade at higher multiples
of current earnings than other securities. Growth securities are
often more sensitive to market fluctuations than other securities
because
their market prices are highly sensitive to future earnings expectations.
At times when it appears that these expectations may not
be met, growth stock prices typically
fall. |
| |
Value
investment style risk.
Certain equity securities (generally referred
to as value securities) are purchased primarily because they are
selling at prices below what the manager believes to be their fundamental
value and not necessarily because the issuing
|
| |
companies
are expected to experience significant earnings growth. The
fund bears the risk that the companies that issued these securities
may not overcome the adverse business developments or other
factors causing their securities to be perceived by the manager
to be
underpriced or that the market may never come to recognize their
fundamental value. A value security may not increase in price,
as
anticipated by
the manager investing in such securities, if other investors
fail to recognize the company’s value and bid up the price or
invest in markets favoring faster growing companies. The fund’s
strategy
of investing in value securities also carries the risk that in
certain
markets, value securities will underperform growth securities.
In addition, securities issued by U.S. entities with substantial
foreign operations may involve risks relating to economic,
political or regulatory conditions in foreign
countries. |
ESG
integration risk
The manager
considers
ESG factors
that it deems relevant or additive, along with
other material factors and analysis, when managing
the fund.
The portion
of the fund’s investments for which the manager considers these ESG
factors may vary, and could increase or decrease over time. In
certain
situations, the extent to which these ESG factors
may be applied
according
to the manager’s integrated investment process may not include
U.S. Treasuries, government securities, or other asset classes. ESG factors
may include,
but are not limited to, matters regarding board diversity,
climate change policies, and supply chain and human rights policies.
Incorporating
ESG criteria and making
investment decisions based
on certain
ESG characteristics, as determined by the manager, carries the
risk that the fund may perform differently, including underperforming,
funds that do not utilize ESG criteria,
or funds that utilize
different ESG criteria. Integration of ESG factors into the fund’s investment
process may result in a manager making different investments
for the fund than for a fund with a similar investment universe
and/or investment style that does not incorporate such considerations
in its investment strategy or processes, and the fund’s investment
performance may be affected. Because ESG factors are one of many
considerations for the fund, the manager may nonetheless include
companies with low ESG scores or exclude companies with high ESG scores
in the fund’s investments.
The ESG
characteristics utilized in the fund’s investment process may change over
time, and different ESG characteristics may be relevant to different
investments. Although the manager has established its own structure
to oversee ESG integration in accordance with the fund’s investment
objective and strategies, successful integration of ESG factors
will depend on the manager’s skill in researching, identifying, and applying
these factors, as well as on the availability of relevant data. The method of
evaluating ESG factors and subsequent impact on portfolio composition,
performance, proxy voting decisions and other factors, is subject to
the interpretation of the manager in accordance with the fund’s
investment objective and strategies. ESG factors may be evaluated
differently by different managers, and may not carry the same meaning to
all investors and managers. The manager may employ active shareowner
engagement to raise ESG issues with the management of select
portfolio companies. The regulatory landscape with respect to ESG
investing in the United States is evolving and any future rules or regulations
may require the fund to change its investment process with respect to
ESG integration.
Exchange-traded
funds (ETFs)
risk
ETFs are a
type of investment company bought and sold on a securities exchange. A
fund could purchase shares of an ETF to gain exposure to a portion of
the U.S. or a foreign market. The risks of owning shares of an ETF include
the risks of directly owning the underlying securities and other
instruments the ETF holds. A lack of liquidity in an ETF (e.g., absence of
an active trading market) could result in the ETF being more volatile
than its underlying securities. The existence of extreme market volatility
or potential lack of an active trading market for an ETF’s shares could
result in the ETF’s shares trading at a significant premium or discount to
its net asset
value (NAV). An ETF has
its own fees and expenses,
which are indirectly borne by the fund. A fund may also incur brokerage
and other related costs when it purchases and sells ETFs. Also, in
the case of passively-managed ETFs, there is a risk that an ETF may fail to
closely track the index or market segment that it is designed to track
due to delays in the ETF’s implementation of changes to the composition
of the index or other factors.
High
portfolio turnover risk
A high fund
portfolio turnover rate (over 100%) generally involves correspondingly
greater brokerage commission and tax expenses, which must be
borne directly by a fund and its shareholders, respectively. The portfolio
turnover rate of a fund may vary from year to year, as well as within a
year.
Large
company risk
Larger,
more established companies may be unable to respond quickly to new
competitive challenges such as changes in technology and consumer
tastes. Many larger companies also may not be able to attain the high
growth rate of successful smaller companies, especially during extended
periods of economic expansion. For purposes of the fund’s investment
policies, the market capitalization of a company is based on its
capitalization at the time the fund purchases the company’s securities.
Market capitalizations of companies change over time. The fund is not
obligated to sell a company’s security simply because, subsequent
to its purchase, the company’s market capitalization has changed to
be outside the capitalization range, if any, in effect for the fund.
Liquidity
risk
The extent
(if at all) to which a security may be sold without
negatively impacting
its market value may be impaired by reduced market activity or
participation, legal restrictions, or other economic and market impediments.
Funds with principal investment strategies that involve investments
in securities of companies with smaller market capitalizations,
foreign securities, or
securities with substantial market and/or
credit risk tend to have the greatest exposure to liquidity risk. Exposure to
liquidity risk may be heightened for funds that invest in securities
of emerging markets that are
not widely traded, and that may be subject
to purchase and sale restrictions.
Non-diversified
risk
Overall
risk can be reduced by investing in securities from a diversified pool of
issuers, while overall risk is increased by investing in securities of
a small
number of issuers. If a fund is not diversified within the meaning of the
Investment Company Act of 1940, as amended, that means it is allowed to
invest a large portion of assets in any one issuer or a small number of
issuers, which may result in greater susceptibility to
associated
risks. As a result, credit, market, and other risks associated with a
non-diversified fund’s investment strategies or techniques may be more
pronounced than for funds that are diversified.
Operational
and cybersecurity risk
With the
increased use of technologies, such as mobile devices and “cloud”-based
service offerings and the dependence on the internet and computer
systems to perform necessary business functions, the fund’s service
providers are susceptible to operational and information or cybersecurity
risks that could result in losses to the fund and its shareholders.
Intentional cybersecurity breaches include unauthorized access to
systems, networks, or devices (such as through “hacking” activity or
“phishing”); infection from computer viruses or other malicious
software code; and attacks that shut down, disable, slow, or otherwise
disrupt operations, business processes, or website access or functionality.
Cyber-attacks can also be carried out in a manner that does not
require gaining unauthorized access, such as causing denial-of-service
attacks on the service providers’ systems or websites rendering
them unavailable to intended users or via “ransomware” that renders the
systems inoperable until appropriate actions are taken. In addition,
unintentional incidents can occur, such as the inadvertent release of
confidential information (possibly resulting in the violation of applicable
privacy laws).
A
cybersecurity breach could result in the loss or theft of customer data
or funds,
loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system
repairs. Such incidents could cause a fund, the advisor, a manager, or
other service providers to incur regulatory penalties, reputational
damage, additional compliance costs, litigation costs or financial
loss. In addition, such incidents could affect issuers in which a fund
invests, and thereby cause the fund’s investments to lose value.
Cyber-events
have the potential to materially affect the fund and the advisor’s
relationships with accounts, shareholders, clients, customers, employees,
products, and service providers. The fund has established risk
management systems reasonably designed to seek to reduce the risks
associated with cyber-events. There is no guarantee that the fund will be
able to prevent or mitigate the impact of any or all cyber-events.
The fund is
exposed to operational risk arising from a number of factors, including,
but not limited to, human error, processing and communication
errors, errors of the fund’s service providers, counterparties,
or other third parties, failed or inadequate processes and
technology or system failures.
In
addition, other disruptive events, including (but not limited to) natural
disasters
and public health crises (such as the coronavirus
(COVID-19) pandemic),
may adversely affect the fund’s ability to conduct business, in
particular if the fund’s employees or the employees of its service providers
are unable or unwilling to perform their responsibilities as a result of
any such event. Even if the fund’s employees and the employees of its
service providers are able to work remotely, those remote work arrangements
could result in the fund’s business operations being less efficient
than under normal circumstances, could lead to delays in its processing
of transactions, and could increase the risk of cyber-events.
Preferred
and convertible securities risk
Unlike
interest on debt securities, preferred stock dividends are payable only if
declared by the issuer’s board. Also, preferred stock may be subject to
optional or mandatory redemption provisions. The market values of
convertible securities tend to fall as interest rates rise and rise as interest
rates fall. The value of convertible preferred stock can depend
heavily upon the value of the security into which such convertible preferred
stock is converted, depending on whether the market price of the
underlying security exceeds the conversion price.
Real
estate investment trust (REIT) risk
REITs are
subject to risks associated with the ownership of real estate. Some REITs
experience market risk and liquidity risk due to investment in a
limited number of properties, in a narrow geographic area, or in a single
property type, which increases the risk that such REIT could be unfavorably
affected by the poor performance of a single investment or investment
type. These companies are also sensitive to factors such as changes in
real estate values and property taxes, interest rates, cash flow of
underlying real estate assets, supply and demand, and the management
skill and creditworthiness of the issuer. Borrowers could default on
or sell investments that a REIT holds, which could reduce the cash flow
needed to make distributions to investors. In addition, REITs may also be
affected by tax and regulatory requirements impacting the REITs’
ability to qualify for preferential tax treatments or exemptions. REITs
require specialized management and pay management expenses. REITs also
are subject to physical risks to real property, including weather,
natural disasters, terrorist attacks, war, or other events that destroy
real property.
REITs
include equity REITs and mortgage REITs. Equity REITs may be affected by
changes in the value of the underlying property owned by the trusts,
while mortgage REITs may be affected by the quality of any credit extended.
Further, equity and mortgage REITs are dependent upon management
skills and generally may not be diversified. Equity and mortgage
REITs are also subject to heavy cash flow dependency, defaults by
borrowers or lessees, and self-liquidations. In addition, equity and
mortgage REITs could possibly fail to qualify for tax-free pass-through
of income under the Internal Revenue Code of 1986, as amended
(the Code), or to maintain their exemptions from registration under the
Investment Company Act of 1940, as amended. The above factors may
also adversely affect a borrower’s or a lessee’s ability to meet its
obligations to the REIT. In the event of a default by a borrower or lessee, the
REIT may experience delays in enforcing its rights as a mortgagee
or lessor and may incur substantial costs associated with protecting
its investments. In addition, even many of the larger REITs in the
industry tend to be small to medium-sized companies in relation to the equity
markets as a whole. Moreover, shares of REITs may trade less frequently
and, therefore, are subject to more erratic price movements than
securities of larger issuers.
Real
estate securities risk
Investing
in securities of companies in the real estate industry subjects a fund to the
risks associated with the direct ownership of real estate.
These risks
include:
|
• |
Declines
in the value of real estate |
|
• |
Risks
related to general and local economic
conditions |
|
• |
Possible
lack of availability of mortgage funds |
|
• |
Extended
vacancies of properties |
|
• |
Increases
in property taxes and operating expenses |
|
• |
Losses
due to costs resulting from the cleanup of environmental problems |
|
• |
Liability
to third parties for damages resulting from environmental problems |
|
• |
Casualty
or condemnation losses |
|
• |
Changes
in neighborhood values and the appeal of properties to tenants |
|
• |
Changes
in interest rates and |
Therefore,
for a fund investing a substantial amount of its assets in securities
of companies in the real estate industry, the value of the fund’s shares may
change at different rates compared with the value of shares of a fund
with investments in a mix of different industries.
Securities
of companies in the real estate industry have been and may continue to
be negatively affected by the coronavirus
(COVID-19) pandemic.
Potential impacts on the real estate market may include lower
occupancy rates, decreased lease payments, defaults and foreclosures,
among other consequences. These impacts could adversely
affect corporate borrowers and mortgage lenders, the value of mortgage-backed
securities, the bonds of municipalities that depend on tax
revenues and tourist dollars generated by such properties, and insurers of
the property and/or of corporate, municipal or mortgage-backed
securities. It is not known how long such impacts, or any future
impacts of other significant events, will last.
Securities
of companies in the real estate industry include equity REITs and
mortgage REITs. Equity REITs may be affected by changes in the value of
the underlying property owned by the REIT, while mortgage REITs may
be affected by the quality of any credit extended. Further, equity and
mortgage REITs are dependent upon management skills and generally
may not be diversified. Equity and mortgage REITs are also subject to
heavy cash flow dependency, defaults by borrowers or lessees,
and self-liquidations. In addition, equity and mortgage REITs could
possibly fail to qualify for tax-free pass through of income under the
Internal Revenue Code of 1986 (the Code) or to maintain their exemptions
from registration under the Investment Company Act of 1940, as
amended. The above factors may also adversely affect a borrower’s
or a lessee’s ability to meet its obligations to a REIT. In the event of a
default by a borrower or lessee, a REIT may experience delays in
enforcing its rights as a mortgagee or lessor and may incur substantial
costs associated with protecting its investments.
In
addition, even the larger REITs in the industry tend to be small to medium-sized
companies in relation to the equity markets as a whole. Moreover,
shares of REITs may trade less frequently and, therefore, are subject to
more erratic price movements than securities of larger issuers.
Sector
risk
When a
fund’s investments are focused in one or more sectors of the economy,
they are less broadly invested across industries or sectors than other
funds. This means that focused funds tend to be more volatile than other
funds, and the values of their investments tend to go up and down more
rapidly. In addition, a fund that invests in particular sectors is particularly
susceptible to the impact of market, economic, political, regulatory,
and other conditions and risks affecting those sectors. From time to
time, a small number of companies may represent a large portion of
a single sector or a group of related sectors as a whole. To the
extent that
a fund invests in securities of companies in the information technology
sector, the fund may be significantly affected by rapid obsolescence,
short product cycles, competition from new market entrants,
and heightened cybersecurity risk, among other factors, impacting
that sector.
Small
and mid-sized company risk
Market risk
and liquidity risk may be pronounced for securities of companies
with medium-sized market capitalizations and are particularly
pronounced for securities of companies with smaller market capitalizations.
These companies may have limited product lines, markets, or
financial resources, or they may depend on a few key employees.
The securities of companies with medium and smaller market
capitalizations may trade less frequently and in lesser volume than more
widely held securities, and their value may fluctuate more sharply
than those securities. They may also trade in the OTC market or on a
regional exchange, or may otherwise have limited liquidity. Investments
in less-seasoned companies with medium and smaller market
capitalizations may present
greater opportunities for growth and capital
appreciation, but also involve greater risks than are customarily associated
with more established companies with larger market capitalizations.
These risks apply to all funds that invest in the securities of
companies with smaller- or medium-sized market capitalizations. For purposes of
the fund’s investment policies, the market capitalization of a company is
based on its capitalization at the time the fund purchases the
company’s securities. Market capitalizations of companies change over time.
The fund is not obligated to sell a company’s security simply because,
subsequent to its purchase, the company’s market capitalization
has changed to be outside the capitalization range, if any, in effect
for the fund.
Who’s
who
The
following are the names of the various entities involved with the fund’s
investment and business operations, along with brief descriptions of the role
each entity performs.
Board
of Trustees
The
Trustees oversee the fund’s business activities and retain the services of
the various firms that carry out the fund’s operations.
Investment
advisor
The
investment advisor manages the fund’s business and investment activities.
John
Hancock Investment Management LLC
200
Berkeley Street
Boston,
MA 02116
Founded in
1968, the advisor is an indirect principally owned subsidiary of John
Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary
of Manulife Financial Corporation.
The
advisor’s parent company has been helping individuals and institutions
work toward their financial goals since 1862. The advisor offers
investment solutions managed by leading institutional money managers,
taking a disciplined team approach to portfolio management and
research, leveraging the expertise of seasoned investment professionals.
As of March 31, 2022, the
advisor had total assets under management
of approximately $168.8
billion.
Subject to
general oversight by the Board of Trustees, the advisor manages and
supervises the investment operations and business affairs of the
fund. The advisor selects, contracts with and compensates one or more
subadvisors to manage all or a portion of the fund’s portfolio assets,
subject to oversight by the advisor. In this role, the advisor has supervisory
responsibility for managing the investment and reinvestment of the
fund’s portfolio assets through proactive oversight and monitoring of the
subadvisor and the fund, as described in further detail below. The advisor is
responsible for developing overall investment strategies for the fund
and overseeing and implementing the fund’s continuous investment
programs and provides a variety of advisory oversight and investment
research services. The advisor also provides management and
transition services associated with certain fund events (e.g., strategy,
portfolio manager, or subadvisor changes) and coordinates and
oversees services provided under other agreements.
The advisor
has ultimate responsibility to oversee a subadvisor and recommend
to the Board of Trustees its hiring, termination, and replacement.
In this capacity, the advisor, among other things: (i) monitors on
a daily basis the compliance of the subadvisor with the investment
objectives and related policies of the fund; (ii) monitors significant
changes that may impact the subadvisor’s overall business and
regularly performs due diligence reviews of the subadvisor; (iii) reviews the
performance of the subadvisor; and (iv) reports periodically on such
performance to the Board of Trustees. The advisor employs a team of
investment professionals who provide these ongoing research and
monitoring services.
The fund
relies on an order from the Securities and Exchange Commission
(SEC) permitting the advisor, subject to approval by the Board of
Trustees, to appoint a subadvisor or change the terms of a subadvisory
agreement without obtaining shareholder approval. The fund,
therefore, is able to change subadvisors or the fees paid to a subadvisor,
from time to time, without the expense and delays associated
with obtaining shareholder approval of the change. This order does not,
however, permit the advisor to appoint a subadvisor that is an affiliate
of the advisor or the fund (other than by reason of serving as a subadvisor
to the fund), or to increase the subadvisory fee of an affiliated subadvisor,
without the approval of the shareholders.
Management
fee
The fund
pays the advisor a management fee for its services to the fund. The advisor
in turn pays the fees of the subadvisor. The management fee is stated
as an annual percentage of the aggregate net assets of the fund
(together with the assets of any other applicable fund identified in
the
advisory agreement converted into U.S. dollars using currency exchange
rates as determined by the fund, if applicable) determined in
accordance
with the following schedule, and that rate is applied to the average
daily net assets of the fund.
|
|
|
Average
daily net assets ($) |
Annual
rate
(%) |
|
First
500 million |
0.600 |
|
Next
1 billion |
0.550 |
|
Excess
over 1.5 billion |
0.530 |
During its
most recent fiscal year, the fund paid the advisor a management
fee equal to 0.54% of average
daily net assets (including any waivers
and/or reimbursements).
The basis
for the Board of Trustees’ approval of the advisory fees, and of the
investment advisory agreement overall, including the subadvisory agreement,
is discussed in the fund’s most recent semiannual shareholder
report for the period ended September 30.
Additional
information about fund expenses
The fund’s
annual operating expenses will likely vary throughout the period and
from year to year. The fund’s expenses for the current fiscal year may be
higher than the expenses listed in the fund’s Annual fund operating
expenses table, for some of the following reasons: (i) a significant
decrease in average net assets may result in a higher advisory
fee rate if any advisory fee breakpoints are not achieved; (ii) a significant
decrease in average net assets may result in an increase in the expense
ratio because certain fund expenses do not decrease as asset
levels decrease; or (iii) fees may be incurred for extraordinary events such
as fund tax expenses.
As
may be
described
in “Fund summary - Fees and expenses” on page 1 of this
prospectus, the advisor has contractually agreed to waive a portion of
its management fee and/or reimburse expenses for certain funds of
the John Hancock funds complex, including the fund (the participating
portfolios). The waiver equals, on an annualized basis, 0.0100% of
that portion of the aggregate net assets of all the participating
portfolios that exceeds $75 billion but is less than or equal to $125
billion; 0.0125% of that portion of the aggregate net assets of all the
participating portfolios that exceeds $125 billion but is less than or equal to
$150 billion; 0.0150% of that portion of the aggregate net assets of
all the participating portfolios that exceeds $150 billion but is less than
or equal to $175 billion; 0.0175% of that portion of the aggregate
net assets of all the participating portfolios that exceeds $175
billion but is less than or equal to $200 billion; 0.0200% of that portion of
the aggregate net assets of all the participating portfolios that exceeds
$200 billion but is less than or equal to $225 billion; and 0.0225% of
that portion of the aggregate net assets of all the participating
portfolios that exceeds $225 billion. The amount of the reimbursement
is calculated daily and allocated among all the participating
portfolios in proportion to the daily net assets of each participating
portfolio. This
agreement expires on July 31, 2024, unless
renewed by
mutual agreement of the fund and the advisor based upon a determination
that this is appropriate under the circumstances at that time.
The advisor
voluntarily agrees to reduce its management fee for the fund, or if
necessary make payment to the fund, in an amount equal to the amount
by which the expenses of the fund exceed 0.20% of the average net
assets of the fund. For purposes of this agreement, “expenses
of the fund” means all the expenses of the fund, excluding (a)
taxes, (b)
brokerage commissions, (c) interest expense, (d) litigation and indemnification
expenses and other extraordinary expenses not incurred in the
ordinary course of the fund’s business, (e) advisory fees, (f) class-specific
expenses, (g) borrowing costs, (h) prime brokerage fees, (i)
acquired fund fees and expenses paid indirectly, and (j) short dividend
expense.
This agreement will continue in effect until terminated at any time by the
advisor on notice to the fund.
Subadvisor
The
subadvisor handles the fund’s portfolio management activities, subject to
oversight by the advisor.
Wellington
Management Company LLP
280
Congress Street
Boston,
MA 02210
Wellington
Management Company LLP (Wellington Management) is a professional
investment counseling firm which provides investment services to
investment companies, employee benefit plans, endowments,
foundations, and other institutions. Wellington Management
and its predecessor organizations have provided investment
advisory services for over 90 years.
Wellington Management is owned by
the partners of Wellington Management Group LLP, a Massachusetts
limited liability partnership. As of March 31, 2022,
Wellington
Management and its investment advisory affiliates had investment
management authority with respect to more than $1.3 trillion in
assets.
The
following is a brief biographical profile of the fund’s portfolio manager who
is primarily responsible for the day-to-day management of the fund’s
portfolio. This manager is employed by Wellington Management.
For more information about this individual, including information
about his compensation, other accounts he manages, and any
investments he may have in the fund, see the SAI.
John
A. Boselli, CFA
|
• |
Senior
Managing Director and Equity Portfolio
Manager |
|
• |
Managed
the fund since 2018 |
|
• |
Joined
Wellington Management in 2002 |
Timothy
N. Manning
|
• |
Senior
Managing Director and Equity Portfolio
Manager |
|
• |
Managed
the fund since 2022 |
|
• |
Joined
Wellington Management in 2007 |
Custodian
The
custodian holds the fund’s assets, settles all portfolio trades, and
collects
most of the valuation data required for calculating the fund’s net asset
value.
State
Street Bank and Trust Company
State
Street Financial Center
One
Lincoln Street
Boston,
MA 02111
Principal
distributor
The
principal distributor markets the fund and distributes shares through
selling brokers, financial planners, and other financial professionals.
John
Hancock Investment Management Distributors LLC
200
Berkeley Street
Boston,
MA 02116
Transfer
agent
The
transfer agent handles shareholder services, including recordkeeping
and statements, distribution of dividends, and processing of
buy-and-sell requests.
John
Hancock Signature Services, Inc.
P.O. Box
219909
Kansas
City, MO 64121-9909
Additional
information
The fund
has entered into contractual arrangements with various parties that
provide services to the fund, which may include, among others, the advisor,
subadvisor, custodian, principal distributor, and transfer agent, as
described above and in the SAI. Fund shareholders are not parties to,
or intended
or “third-party” beneficiaries of, any of these contractual arrangements.
These contractual arrangements are not intended to, nor do they,
create in any individual shareholder or group of shareholders any right,
either directly or on behalf of the fund, to either: (a) enforce such
contracts against the service providers; or (b) seek any remedy under such
contracts against the service providers.
The advisor
internally credits a portion of its profits to an affiliated business,
John Hancock Retirement (JHR), which is the record keeper for certain
401(k) plans that invest in Class R6 shares. JHR may reduce the record
keeping fees paid to it by such 401(k) plans by a commensurate
amount. JHR may discontinue this practice with adequate
notice to plan sponsors.
This
prospectus provides information concerning the fund that you should
consider in determining whether to purchase shares of the fund. Each of
this prospectus, the SAI, or any contract that is an exhibit to the fund’s
registration statement, is not intended to, nor does it, give rise to
an
agreement or contract between the fund and any investor. Each such document
also does not give rise to any contract or create rights in any individual
shareholder, group of shareholders, or other person. The foregoing
disclosure should not be read to suggest any waiver of any rights
conferred by federal or state securities laws.
Financial
highlights
These
tables detail the financial performance of each share class described in this
prospectus, including total return information showing how much an
investment in the fund has increased or decreased each period (assuming
reinvestment of all dividends and distributions). Certain information
reflects
financial results for a single fund share.
The
financial statements of the fund as of March 31, 2022, have been
audited by PricewaterhouseCoopers LLP (PwC), the fund’s independent registered
public accounting firm. The report of PwC, along with the fund’s financial
statements in the fund’s annual report for the fiscal period ended
March 31,
2022, has been
incorporated by reference into the SAI. Copies of the fund’s most recent annual
report are available upon request.
|
|
|
|
|
|
|
|
U.S.
Growth Fund Class A Shares |
|
Per
share operating performance |
Period
ended |
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
|
|
|
|
|
Net
investment income (loss)1
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
Less
distributions |
|
|
|
|
|
|
|
From
net investment income |
|
|
|
|
|
|
|
From
net realized gain |
|
|
|
|
|
|
|
Total
distributions |
|
|
|
|
|
|
|
Net
asset value, end of period |
|
|
|
|
|
|
|
Total
return (%)3,4
|
|
|
|
|
|
|
|
Ratios
and supplemental data |
|
|
|
|
|
|
|
Net
assets, end of period (in millions) |
|
|
|
|
|
|
|
Ratios
(as a percentage of average net assets): |
|
|
|
|
|
|
|
Expenses
before reductions |
|
|
|
|
|
|
|
Expenses
including reductions |
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
|
|
|
|
|
Portfolio
turnover (%) |
|
|
|
|
|
|
| 1 |
Based
on average daily shares outstanding. |
| 2 |
Less
than $0.005 per share. |
| 3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
| 4 |
Does
not reflect the effect of sales charges, if
any. |
| 5 |
Excludes
in-kind transactions and merger activity. |
| 6 |
Excludes
in-kind transactions. |
|
|
|
|
|
|
|
|
U.S.
Growth Fund Class C Shares |
|
Per
share operating performance |
Period
ended |
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
|
|
|
|
|
Net
investment loss1
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
Less
distributions |
|
|
|
|
|
|
|
From
net realized gain |
|
|
|
|
|
|
|
Total
distributions |
|
|
|
|
|
|
|
Net
asset value, end of period |
|
|
|
|
|
|
|
Total
return (%)2,3
|
|
|
|
|
|
|
|
Ratios
and supplemental data |
|
|
|
|
|
|
|
Net
assets, end of period (in millions) |
|
|
|
|
|
|
|
Ratios
(as a percentage of average net assets): |
|
|
|
|
|
|
|
Expenses
before reductions |
|
|
|
|
|
|
|
Expenses
including reductions |
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
Portfolio
turnover (%) |
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
|
2 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
|
3 |
Does
not reflect the effect of sales charges, if any. |
|
4 |
Excludes
in-kind transactions and merger activity. |
|
5 |
Excludes
in-kind transactions. |
|
|
|
|
|
|
|
|
U.S.
Growth Fund Class I Shares |
|
Per
share operating performance |
Period
ended |
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
|
|
|
|
|
Net
investment income (loss)1
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
Less
distributions |
|
|
|
|
|
|
|
From
net investment income |
|
|
|
|
|
|
|
From
net realized gain |
|
|
|
|
|
|
|
Total
distributions |
|
|
|
|
|
|
|
Net
asset value, end of period |
|
|
|
|
|
|
|
Total
return (%)2
|
|
|
|
|
|
|
|
Ratios
and supplemental data |
|
|
|
|
|
|
|
Net
assets, end of period (in millions) |
|
|
|
|
|
|
|
Ratios
(as a percentage of average net assets): |
|
|
|
|
|
|
|
Expenses
before reductions |
|
|
|
|
|
|
|
Expenses
including reductions |
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
|
|
|
|
|
Portfolio
turnover (%) |
|
|
|
|
|
|
| 1 |
Based
on average daily shares outstanding. |
| 2 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
| 3 |
Excludes
in-kind transactions and merger activity. |
| 4 |
Excludes
in-kind transactions. |
|
|
|
|
|
|
|
|
U.S.
Growth Fund Class R2 Shares |
|
Per
share operating performance |
Period
ended |
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
|
|
|
|
|
Net
investment loss1
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
Less
distributions |
|
|
|
|
|
|
|
From
net investment income |
|
|
|
|
|
|
|
From
net realized gain |
|
|
|
|
|
|
|
Total
distributions |
|
|
|
|
|
|
|
Net
asset value, end of period |
|
|
|
|
|
|
|
Total
return (%)3
|
|
|
|
|
|
|
|
Ratios
and supplemental data |
|
|
|
|
|
|
|
Net
assets, end of period (in millions) |
|
|
|
|
|
|
|
Ratios
(as a percentage of average net assets): |
|
|
|
|
|
|
|
Expenses
before reductions |
|
|
|
|
|
|
|
Expenses
including reductions |
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
Portfolio
turnover (%) |
|
|
|
|
|
|
| 1 |
Based
on average daily shares outstanding. |
| 2 |
Less
than $0.005 per share. |
| 3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
| 4 |
Excludes
in-kind transactions and merger activity. |
| 5 |
Excludes
in-kind transactions. |
|
|
|
|
|
|
|
|
U.S.
Growth Fund Class R4 Shares |
|
Per
share operating performance |
Period
ended |
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
|
|
|
|
|
Net
investment income (loss)1
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
Less
distributions |
|
|
|
|
|
|
|
From
net investment income |
|
|
|
|
|
|
|
From
net realized gain |
|
|
|
|
|
|
|
Total
distributions |
|
|
|
|
|
|
|
Net
asset value, end of period |
|
|
|
|
|
|
|
Total
return (%)3
|
|
|
|
|
|
|
|
Ratios
and supplemental data |
|
|
|
|
|
|
|
Net
assets, end of period (in millions) |
|
|
|
|
|
|
|
Ratios
(as a percentage of average net assets): |
|
|
|
|
|
|
|
Expenses
before reductions |
|
|
|
|
|
|
|
Expenses
including reductions |
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
|
|
|
|
|
Portfolio
turnover (%) |
|
|
|
|
|
|
| 1 |
Based
on average daily shares outstanding. |
| 2 |
Less
than $0.005 per share. |
| 3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
| 5 |
Excludes
in-kind transactions and merger activity. |
| 6 |
Excludes
in-kind transactions. |
|
|
|
|
|
|
|
|
U.S.
Growth Fund Class R6 Shares |
|
Per
share operating performance |
Period
ended |
|
|
|
|
|
|
Net
asset value, beginning of period |
|
|
|
|
|
|
|
Net
investment income (loss)1
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
Less
distributions |
|
|
|
|
|
|
|
From
net investment income |
|
|
|
|
|
|
|
From
net realized gain |
|
|
|
|
|
|
|
Total
distributions |
|
|
|
|
|
|
|
Net
asset value, end of period |
|
|
|
|
|
|
|
Total
return (%)3
|
|
|
|
|
|
|
|
Ratios
and supplemental data |
|
|
|
|
|
|
|
Net
assets, end of period (in millions) |
|
|
|
|
|
|
|
Ratios
(as a percentage of average net assets): |
|
|
|
|
|
|
|
Expenses
before reductions |
|
|
|
|
|
|
|
Expenses
including reductions |
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
|
|
|
|
|
Portfolio
turnover (%) |
|
|
|
|
|
|
| 1 |
Based
on average daily shares outstanding. |
| 2 |
Less
than $0.005 per share. |
| 3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
| 4 |
Excludes
in-kind transactions and merger activity. |
| 5 |
Excludes
in-kind transactions. |
Choosing
an eligible share class
Class A,
Class C, Class R2, and Class R4 shares have a Rule 12b-1 plan that allows
the class to pay fees for the sale, distribution, and service of its shares.
Class I and
Class R6 shares do not have a Rule 12b-1 plan. Your
financial professional can help you decide which share class you are
eligible to buy and is best for you. Each class’s eligibility guidelines
are
described below.
Class
A shares
Class A
shares are not available to group retirement plans that do not currently
hold Class A shares of the fund and that are eligible to invest in Class I
shares or any of the R share classes, except as provided below. Such group
retirement plans include defined benefit plans, 401(k) plans, 457 plans,
403(b)(7) plans, pension and profit-sharing plans, and nonqualified
deferred compensation plans. Individual retirement accounts
(IRAs), Roth IRAs, SIMPLE IRAs, individual (“solo” or “single”) 401(k)
plans, individual profit sharing plans, individual 403(b) plans, individual
defined benefit plans, simplified employee pensions (SEPs), SAR-SEPs,
529 tuition programs and Coverdell Educational Savings Accounts
are not considered group retirement plans and are not subject to this
restriction on the purchase of Class A shares.
Investment
in Class A shares by such group retirement plans will be permitted
in the following circumstances:
|
• |
The
plan currently holds assets in Class A shares of the fund or any
John
Hancock fund; |
|
• |
Class
A shares of the fund or any other John Hancock fund were established
as an investment option under the plan prior to January 1, 2013,
and the fund’s representatives have agreed that the plan may invest
in Class A shares after that date; |
|
• |
Class
A shares of the fund or any other John Hancock fund were established
as a part of an investment model prior to January 1, 2013,
and the fund’s representatives have agreed that plans utilizing
such
model may invest in Class A shares after that date;
and |
|
• |
Such
group retirement plans offered through an intermediary brokerage
platform that does not require payments relating to the provisions
of services to the fund, such as providing omnibus account services,
transaction-processing services, or effecting portfolio transactions
for the fund, that are specific to assets held in such group retirement
plans and vary from such payments otherwise made for such
services with respect to assets held in non-group retirement plan
accounts. |
Class
C shares
The maximum
amount you may invest in Class C shares with any single purchase is
$999,999.99. John Hancock Signature Services, Inc. (Signature
Services), the transfer agent for the fund, may accept a purchase
request for Class C shares for $1,000,000 or more when the purchase is
pursuant to the reinstatement privilege (see “Sales charge reductions
and waivers”). Class C shares automatically convert to Class A shares
after eight years, provided that the fund or the financial intermediary
through which a shareholder purchased or holds Class C shares has
records verifying that the Class C shares have been held for at least
eight years. Group retirement plan recordkeeping platforms of certain
intermediaries that hold Class C shares with the fund in an
omnibus
account do not track participant level share lot aging and, as such, these
Class C shares would not satisfy the conditions for the automatic
Class C to Class A conversion.
Class
I shares
Class I
shares are offered without any sales charge to the following types of
investors if they also meet the minimum initial investment requirement
for purchases of Class I shares (see “Opening an account”):
|
• |
Clients
of financial intermediaries who: (i) charge such clients a fee for
advisory,
investment, consulting, or similar services; (ii) have entered
into
an agreement with the distributor to offer Class I shares through a
no-load
program or investment platform; or (iii) have entered into an agreement
with the distributor to offer Class I shares to clients on certain
brokerage platforms where the intermediary is acting solely as
an
agent for the investor who may be required to pay a commission
and/or
other forms of compensation to the intermediary. Other share classes
of the fund have different fees and
expenses. |
|
• |
Retirement
and other benefit plans |
|
• |
Endowment
funds,
foundations, donor advised funds, and other charitable
entities |
|
• |
Any
state, county, or city, or its instrumentality, department, authority,
or
agency |
|
• |
Accounts
registered to insurance companies, trust companies, and bank
trust departments |
|
• |
Any
entity that is considered a corporation for tax
purposes |
|
• |
Investment
companies, both affiliated and not affiliated with the advisor |
|
• |
Trustees,
employees of the advisor or its affiliates, employees of the subadvisor,
members of the fund’s portfolio management team and the
spouses and children (under age 21) of the
aforementioned |
Class
R2 and Class R4 shares
Class R2
and Class R4 shares are available to certain types of investors, as noted
below:
|
• |
Qualified
tuition programs under Section 529 (529 plans) of the Internal
Revenue Code of 1986, as amended (the Code), distributed by
John Hancock or one of its affiliates |
|
• |
Retirement
plans, including pension, profit-sharing, and other plans qualified
under Section 401(a) or described in Section 403(b) or 457 of
the Code, and nonqualified deferred compensation
plans |
|
• |
Retirement
plans, Traditional and Roth IRAs, Coverdell Education Savings
Accounts, SEPs, SARSEPs, and SIMPLE IRAs where the shares are
held on the books of the fund through investment-only omnibus accounts
(either at the plan level or at the level of the financial service
firm)
that trade through the National Securities Clearing Corporation
(NSCC) |
Except
as noted above, Class R2 and Class R4 shares are not available to
retail or institutional non-retirement accounts, Traditional and Roth
IRAs,
Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs,
individual 403(b) plans, or other individual retirement
accounts.
Class
R6 shares
Class R6
shares are offered without any sales charge and are generally made
available to the following types of investors if they also meet the minimum
initial investment requirement for purchases of Class R6 shares.
(See “Opening an account.”)
|
• |
Qualified
401(a) plans (including 401(k) plans, Keogh plans, profit-sharing
pension plans, money purchase pension plans, target benefit
plans, defined benefit pension plans, and Taft-Hartley multi-employer
pension plans) (collectively, qualified
plans) |
|
• |
Endowment
funds and foundations |
|
• |
Any
state, county, or city, or its instrumentality, department, authority,
or
agency |
|
• |
403(b)
plans and 457 plans, including 457(a) governmental entity plans
and tax-exempt plans |
|
• |
Accounts
registered to insurance companies, trust companies, and bank
trust departments |
|
• |
Investment
companies, both affiliated and not affiliated with the advisor |
|
• |
Any
entity that is considered a corporation for tax purposes, including
corporate
nonqualified deferred compensation plans of such corporations |
|
• |
Trustees,
employees of the advisor or its affiliates, employees of the subadvisor,
members of the fund’s portfolio management team and the
spouses and children (under age 21) of the
aforementioned |
|
• |
Financial
intermediaries utilizing fund shares in certain eligible qualifying
investment product platforms under a signed agreement with
the distributor |
Class R6
shares may not be available through certain investment dealers.
The
availability of Class R6 shares for qualified plan investors will depend upon
the policies of your financial intermediary and/or the recordkeeper
for your qualified plan.
Class R6
shares also are generally available only to qualified plan investors
where plan level or omnibus accounts are held on the books of the
fund.
Class R6
shares are not available to retail non-retirement accounts, Traditional
and Roth individual retirement accounts (IRAs), Coverdell Education
Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs, and 529 college
savings plans.
Class
cost structure
Class
A shares
|
• |
A
front-end sales charge, as described in the section “How sales
charges
for Class A and Class C shares are
calculated” |
|
• |
Distribution
and service (Rule 12b-1) fees of 0.25% |
|
• |
A
1.00% CDSC on certain shares sold within one year of
purchase |
Class
C shares
|
• |
No
front-end sales charge; all your money goes to work for you right
away |
|
• |
Rule
12b-1 fees of 1.00% |
|
• |
A
1.00% CDSC on shares sold within one year of
purchase |
|
• |
Automatic
conversion to Class A shares after eight years, thus reducing
future annual expenses (certain exclusions may
apply) |
Class
I shares
|
• |
No
front-end or deferred sales charges; however, if you purchase Class
I shares through a broker acting solely as an agent on behalf of
its
customers, you may be required to pay a commission to the
broker |
Class
R2 shares
|
• |
No
front-end or deferred sales charges; all your money goes to work
for
you right away |
|
• |
Rule
12b-1 fees of 0.25% |
Class
R4 shares
|
• |
No
front-end or deferred sales charges; all your money goes to work
for
you right away |
|
• |
Rule
12b-1 fees of 0.15% (under the Rule 12b-1 plan, the distributor
has
the ability to collect 0.25%; however, the distributor has contractually
agreed to waive 0.10% of these fees through July 31, 2023) |
Class
R6 shares
|
• |
No
front-end or deferred sales charges; all your money goes to work
for
you right away |
Rule
12b-1 fees
Rule 12b-1
fees will be paid to the fund’s distributor, John Hancock Investment
Management Distributors LLC, and may be used by the distributor
for expenses relating to the sale, distribution of, and shareholder
or administrative services for holders of the shares of the class, and
for the payment of service fees that come within Rule 2341 of the Conduct
Rules of the Financial Industry Regulatory Authority (FINRA).
Because
Rule 12b-1 fees are paid out of the fund’s assets on an ongoing basis,
over time they will increase the cost of your investment and may
cost
shareholders more than other types of sales charges.
Your
broker-dealer or agent may charge you a fee to effect transactions
in
fund shares. Other share classes of the fund, which have their own
expense
structure, may be offered in separate prospectuses.
Class
R service plan
In addition
to the Rule 12b-1 plans, the fund has adopted plans for Class R2 and
Class R4 shares that authorize the fund to pay affiliated and unaffiliated
entities a service fee for providing certain recordkeeping and other
administrative services in connection with investments in the fund by
retirement plans. The service fee is a specified percentage of the average
daily net assets of the fund’s share class held by plan participants
and is up to 0.25% for Class R2 shares and 0.10% for Class R4
shares.
The
performance and expense information included in this prospectus does not
reflect fees and expenses of any plan that may use a fund as its underlying
investment option. If such fees and expenses had been reflected,
performance would be lower.
Additional
payments to financial intermediaries
Class A,
Class C, Class R2, and Class R4 shares of the fund are primarily sold
through financial intermediaries, such as brokers, banks, registered
investment
advisors, financial planners, and retirement plan administrators.
These firms may be compensated for selling shares of the fund in
two principal ways:
|
• |
directly,
by the payment of sales commissions, if any;
and |
|
• |
indirectly,
as a result of the fund paying Rule 12b-1
fees. |
Class I
shares do not carry sales commissions or pay Rule 12b-1 fees. However, if
you purchase Class I shares through a broker acting solely as an agent on
behalf of its customers, you may be required to pay a commission
to the broker.
No dealer
compensation is paid from fund assets on sales of Class R6 shares.
Class R6 shares do not carry sales commissions, pay Rule 12b-1 fees, or
make payments to financial intermediaries to assist in the distributor’s
efforts to promote the sale of the fund’s shares. Neither the fund nor
its affiliates make any type of administrative or service payments in
connection with investments in Class R6 shares.
Except with
respect to Class R6 shares, certain firms may request, and the
distributor may agree to make, payments in addition to sales commissions
and Rule 12b-1 fees, if applicable, out of the distributor’s own
resources.
These
additional payments are sometimes referred to as revenue sharing.
These payments assist in the distributor’s efforts to promote the sale of the
fund’s shares. The distributor agrees with the firm on the methods for
calculating any additional compensation, which may include the level
of sales or assets attributable to the firm. Not all firms receive additional
compensation, and the amount of compensation varies. These payments
could be significant to a firm. The distributor determines which firms
to support and the extent of the payments it is willing to make. The
distributor generally chooses to compensate firms that have a strong
capability to distribute shares of the fund and that are willing to cooperate
with the distributor’s promotional efforts.
The
distributor hopes to benefit from revenue sharing by increasing the fund’s net
assets, which, as well as benefiting the fund, would result in additional
management and other fees for the advisor and its affiliates. In
consideration for revenue sharing, a firm may feature the fund in its
sales
system or give preferential access to members of its sales force or management.
In addition, the firm may agree to participate in the distributor’s
marketing efforts by allowing the distributor or its affiliates to
participate in conferences, seminars, or other programs attended by the
intermediary’s sales force. Although an intermediary may seek revenue-sharing
payments to offset costs incurred by the firm in servicing
its clients who have invested in the fund, the intermediary may earn a
profit on these payments. Revenue-sharing payments may provide your firm
with an incentive to favor the fund.
The SAI
discusses the distributor’s revenue-sharing arrangements in more
detail. Your intermediary may charge you additional fees other than those
disclosed in this prospectus. You can ask your firm about any payments it
receives from the distributor or the fund, as well as about fees and/or
commissions it charges.
The
distributor, advisor, and their affiliates may have other relationships
with your
firm relating to the provisions of services to the fund, such as
providing
omnibus account services, transaction-processing services, or effecting
portfolio transactions for the fund. If your intermediary provides
these services, the advisor or the fund may compensate the intermediary
for these services. In addition, your intermediary may have other
compensated relationships with the advisor or its affiliates that are
not related
to the fund.
How
sales charges for Class A and Class C shares are calculated
Class
A sales charges are as follows:
|
|
|
|
Your
investment ($) |
As
a % of
offering
price* |
As
a % of your investment |
|
Up to
49,999 |
5.00 |
5.26 |
|
50,000–99,999 |
4.50 |
4.71 |
|
100,000–249,999 |
3.50 |
3.63 |
|
250,000–499,999 |
2.50 |
2.56 |
|
500,000–999,999 |
2.00 |
2.04 |
|
1,000,000
and over |
See
below |
|
| * |
Offering
price is the net asset value per share plus any initial sales
charge. |
You may
qualify for a reduced Class A sales charge if you own or are purchasing
Class A, Class C, Class I, Class R2, Class R4, Class R5, or Class R6
shares of a John Hancock open-end mutual fund. To
receive the
reduced sales charge, you must tell your broker or financial professional
at the time you purchase the fund’s Class A shares about
any other John Hancock mutual funds held by you, your spouse,
or your children under the age of 21. This
includes investments
held in an individual retirement account, in an employee benefit
plan, or with a broker or financial professional other than the one handling
your current purchase. John Hancock will credit the combined value, at
the current offering price, of all eligible accounts to determine whether you
qualify for a reduced sales charge on your current purchase.
You may need to provide documentation for these accounts, such as an
account statement. For more information about sales charges,
reductions, and waivers, you may visit the fund’s website at jhinvestments.com,
which includes hyperlinks to facilitate access to this information.
You may also consult your broker or financial professional, or refer to
the section entitled “Sales Charges on Class A and Class C Shares” in
the fund’s SAI. You may request an SAI from your broker or financial
professional by accessing the fund’s website at jhinvestments.com
or by calling Signature Services at 800-225-5291.
Investments
of $1 million or more
Class A
shares are available with no front-end sales charge on investments
of $1 million or more. There is a CDSC on any Class A shares upon
which a commission or finder’s fee was paid that are sold within one
year of purchase, as follows:
Class
A deferred charges on investments of $1 million or more
|
|
|
Years
after purchase |
CDSC
(%) |
|
1st
year |
1.00 |
|
After
1st
year |
None |
For
purposes of this CDSC, all purchases made during a calendar month
are
counted as having been made on the first day of that
month.
The CDSC is
based on the lesser of the original purchase cost or the current
market value of the shares being sold, and is not charged on shares you
acquired by reinvesting your dividends. To keep your CDSC as low as
possible, each time you place a request to sell shares, we will first sell
any shares in your account that are not subject to a CDSC.
Class
C shares
Shares are
offered at their net asset value per share, without any initial sales
charge.
A CDSC may
be charged if a commission has been paid and you sell Class C
shares within a certain time after you bought them, as described in the
table below. There is no CDSC on shares acquired through reinvestment
of dividends. The CDSC is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. The
CDSC is as follows:
Class
C deferred charges
|
|
|
Years
after purchase |
CDSC
(%) |
|
1st
year |
1.00 |
|
After
1st
year |
None |
For
purposes of this CDSC, all purchases made during a calendar month
are
counted as having been made on the first day of that month.
To keep
your CDSC as low as possible, each time you place a request to sell
shares, we will first sell any shares in your account that carry no CDSC.
Sales
charge reductions and waivers
The
availability of certain sales charge waivers and discounts will depend
on whether
you purchase your shares directly from the fund or through a financial
intermediary. Intermediaries may have different policies and procedures
regarding the availability of front-end sales charge waivers or CDSC
waivers (See Appendix 1 - Intermediary sales charge waivers, which
includes information about specific sales charge waivers applicable
to the intermediaries identified therein).
Reducing
your Class A sales charges
There are
several ways you can combine multiple purchases of shares of John
Hancock funds to take advantage of the breakpoints in the sales charge
schedule. The first three ways can be combined in any manner.
|
• |
Accumulation
privilege—lets you add the value of any class of shares of
any John Hancock open-end fund you already own to the amount of
your
next Class A investment for purposes of calculating the sales charge.
However, Class A shares of money market funds will not qualify
unless you have already paid a sales charge on those
shares. |
|
• |
Letter
of intention—lets you purchase Class A shares of a fund over a
13-month
period and receive the same sales charge as if all shares had
been purchased at once. You can use a letter of intention to qualify
for reduced sales charges if you plan to invest at least to the
first
breakpoint level (generally $50,000 or $100,000 depending on the
specific fund) in a John Hancock fund’s Class A shares during the
next
13 months. Completing a letter of intention does not obligate you
to
purchase additional shares. However, if you do not buy enough shares
to qualify for the lower sales charges by the earlier of the end of
the
13-month period or when you sell your shares, your sales charges
will
be recalculated to reflect your actual amount purchased. It is your
|
|
|
responsibility
to tell John Hancock Signature Services Inc. or your financial
professional when you believe you have purchased shares totaling
an amount eligible for reduced sales charges, as stated in your
letter of intention. Further information is provided in the
SAI. |
|
• |
Combination
privilege—lets you combine shares of all funds for purposes
of calculating the Class A sales charge. |
To
utilize any reduction, you must complete the appropriate section
of your application, or contact your financial professional or
Signature Services. Consult the SAI for additional details (see the back
cover of this prospectus).
Group
investment program
A group may
be treated as a single purchaser under the accumulation and
combination privileges. Each investor has an individual account, but
the group’s
investments are lumped together for sales charge purposes, making the
investors potentially eligible for reduced sales charges. There is no
charge or obligation to invest (although initial investments per account
opened must satisfy minimum initial investment requirements
specified in the section entitled “Opening an account”), and
individual investors may close their accounts at any time.
To
utilize this program, you must contact your financial professional
or Signature Services to find out how to qualify. Consult
the SAI for additional details (see the back cover of this prospectus).
CDSC
waivers
As long as
Signature Services is notified at the time you sell, any CDSC for Class A
or Class C shares will be waived in the following cases, as applicable:
|
• |
to
make payments through certain systematic withdrawal
plans |
|
• |
certain
retirement plans participating in PruSolutionsSM
programs |
|
• |
redemptions
pursuant to the fund’s right to liquidate an account that is below
the minimum account value stated below in “Dividends and account
policies,” under the subsection “Small
accounts” |
|
• |
redemptions
of Class A shares made after one year from the inception of a
retirement plan at John Hancock |
|
• |
redemptions
made under certain liquidation, merger or acquisition transactions
involving other investment companies or personal holding
companies |
|
• |
to
make certain distributions from a retirement
plan |
|
• |
because
of shareholder death or disability |
|
• |
rollovers,
contract exchanges, or transfers of John Hancock custodial 403(b)(7)
account assets required by John Hancock as a result of its decision
to discontinue maintaining and administering 403(b)(7) accounts |
To
utilize a waiver, you must contact your financial professional or
Signature Services. Consult the SAI for additional details (see the back
cover of this prospectus). Please note, these waivers are distinct
from those described in Appendix 1, “Intermediary sales charge
waivers.”
Reinstatement
privilege
If you sell
shares of a John Hancock fund, you may reinvest some or all of the
proceeds back into the same share class of the same fund and account
from which it was removed, within 120 days without a sales
charge,
subject to fund minimums, as long as Signature Services or your financial
professional is notified before you reinvest. If you paid a CDSC when you
sold your shares, you will be credited with the amount of the CDSC.
Consult the SAI for additional details.
To
utilize this privilege, you must contact your financial professional
or Signature Services. Consult the SAI for additional details
(see the back cover of this prospectus).
Waivers
for certain investors
Class A
shares may be offered without front-end sales charges or CDSCs to the
following individuals and institutions:
|
• |
Selling
brokers and their employees and sales representatives (and their
Immediate Family, as defined in the SAI) |
|
• |
Financial
intermediaries utilizing fund shares in eligible retirement platforms,
fee-based, or wrap investment products |
|
• |
Financial
intermediaries who offer shares to self-directed investment brokerage
accounts that may or may not charge a transaction fee to their
customers |
|
• |
Fund
Trustees and other individuals who are affiliated with these or
other
John Hancock funds, including employees of John Hancock companies
or Manulife Financial Corporation (and their Immediate Family,
as defined in the SAI) |
|
• |
Individuals
exchanging shares held in an eligible fee-based program for
Class A shares, provided however, subsequent purchases in Class
A
shares will be subject to applicable sales
charges |
|
• |
Individuals
transferring assets held in a SIMPLE IRA, SEP, or SARSEP invested
in John Hancock funds directly to an IRA |
|
• |
Individuals
converting assets held in an IRA, SIMPLE IRA, SEP, or SARSEP
invested in John Hancock funds directly to a Roth
IRA |
|
• |
Individuals
recharacterizing assets from an IRA, Roth IRA, SEP, SARSEP,
or SIMPLE IRA invested in John Hancock funds back to the original
account type from which they were
converted |
|
• |
Participants
in group retirement plans that are eligible and permitted to
purchase Class A shares as described in the “Choosing an eligible
share
class” section above. This waiver is contingent upon the group
retirement
plan being in a recordkeeping arrangement and does not apply
to group retirement plans transacting business with the fund through
a brokerage relationship in which sales charges are customarily
imposed, unless such brokerage relationship qualifies for a
sales charge waiver as described. In addition, this waiver does not
apply
to a group retirement plan that leaves its current recordkeeping
arrangement
and subsequently transacts business with the fund through
a brokerage relationship in which sales charges are customarily
imposed. Whether a sales charge waiver is available to your
group retirement plan through its record keeper depends upon the
policies and procedures of your intermediary. Please consult your
financial
professional for further information |
|
• |
Retirement
plans participating in PruSolutionsSM
programs |
|
• |
Terminating
participants in a pension, profit-sharing, or other plan qualified
under Section 401(a) of the Code, or described in Section 457(b)
of the Code, (i) that is funded by certain John Hancock group annuity
contracts, (ii) for which John Hancock Trust Company serves as
trustee or custodian, or (iii) the trustee or custodian of which has
retained
John Hancock Retirement Plan Services (“RPS”) as a service provider,
rolling over assets (directly or within 60 days after
|
|
|
distribution)
from such a plan (or from a John Hancock Managed IRA or
John Hancock Annuities IRA into which such assets have already
been
rolled over) to a John Hancock custodial IRA or John Hancock custodial
Roth IRA that invests in John Hancock funds, or the subsequent
establishment of or any rollover into a new John Hancock fund
account by such terminating participants and/or their Immediate
Family
(as defined in the SAI), including subsequent investments into
such
accounts, and that are held directly at John Hancock funds or at
the
John Hancock Personal Financial Services (“PFS”) Financial
Center |
|
• |
Participants
in a terminating pension, profit-sharing, or other plan qualified
under Section 401(a) of the Code, or described in Section 457(b)
of the Code (the assets of which, immediately prior to such plan’s
termination, were (a) held in certain John Hancock group annuity
contracts, (b) in trust or custody by John Hancock Trust Company,
or (c) by a trustee or custodian which has retained John Hancock
RPS as a service provider, but have been transferred from such
contracts or trust funds and are held either: (i) in trust by a
distribution
processing organization; or (ii) in a custodial IRA or custodial
Roth IRA sponsored by an authorized third-party trust company
and made available through John Hancock), rolling over assets
(directly or within 60 days after distribution) from such a plan
to a
John Hancock custodial IRA or John Hancock custodial Roth IRA that
invests in John Hancock funds, or the subsequent establishment
of or
any rollover into a new John Hancock fund account by such participants
and/or their Immediate Family (as defined in the SAI), including
subsequent investments into such accounts, and that are held
directly at John Hancock funds or at the PFS Financial
Center |
|
• |
Participants
actively enrolled in a John Hancock RPS plan account (or an
account the trustee of which has retained John Hancock RPS as a
service
provider) rolling over or transferring assets into a new John Hancock
custodial IRA or John Hancock custodial Roth IRA that invests
in John Hancock funds through John Hancock PFS (to the extent
such assets are otherwise prohibited from rolling over or transferring
into such participant’s John Hancock RPS plan account), including
subsequent investments into such accounts, and that are held
directly at John Hancock funds or at the John Hancock PFS Financial
Center |
|
• |
Individuals
rolling over assets held in a John Hancock custodial 403(b)(7)
account into a John Hancock custodial IRA
account |
|
• |
Former
employees/associates of John Hancock, its affiliates, or agencies
rolling over (directly or indirectly within 60 days after distribution)
to a new John Hancock custodial IRA or John Hancock custodial
Roth IRA from the John Hancock Employee Investment-Incentive
Plan (TIP), John Hancock Savings Investment Plan
(SIP), or the John Hancock Pension Plan, and such participants
and
their Immediate Family (as defined in the SAI) subsequently establishing
or rolling over assets into a new John Hancock account through
the John Hancock PFS Group, including subsequent investments
into such accounts, and that are held directly at John Hancock
funds or at the John Hancock PFS Financial
Center |
|
• |
A
member of a class action lawsuit against insurance companies who
is
investing settlement proceeds |
To
utilize a waiver, you must contact your financial professional or
Signature Services. Consult the SAI for additional details (see the back
cover of this prospectus). Please note, these waivers are
distinct
from those described in Appendix 1, “Intermediary sales charge
waivers.”
Other
waivers
Front-end
sales charges and CDSCs are not imposed in connection with the
following transactions:
|
• |
Exchanges
from one John Hancock fund to the same class of any other John
Hancock fund (see “Transaction policies” in this prospectus for
additional
details) |
|
• |
Dividend
reinvestments (see “Dividends and account policies” in this prospectus
for additional details) |
|
• |
In
addition, the availability of certain sales charge waivers and
discounts
will depend on whether you purchase your shares directly from
the fund or through a financial intermediary. Intermediaries may
have
different policies and procedures regarding the availability of
front-end
sales charge waivers or CDSC waivers (See Appendix 1 - Intermediary
sales charge waivers, which includes information about specific
sales charge waivers applicable to the intermediaries identified
therein). In all instances, it is the purchaser’s responsibility
to
notify the fund or the purchaser’s financial intermediary at the time
of
purchase of any relationship or other facts qualifying the purchaser
for
sales charge waivers or discounts. For
waivers and discounts not
available through a particular intermediary, shareholders will
have to purchase fund shares directly from the fund or through
another intermediary to receive these waivers or discounts. |
Opening
an account
| 1 |
Read
this prospectus carefully. |
| 2 |
Determine
if you are eligible by referring to “Choosing an eligible share
class.” |
| 3 |
Determine
how much you want to invest. There is no minimum initial investment
to purchase Class R2 or Class R4 shares. The minimum initial
investments for Class A, Class C, Class I and
Class R6 shares are described
below. There are no subsequent minimum
investment
requirements
for these share classes. |
|
|
|
Share
Class |
Minimum
initial investment |
|
Class
A and Class C |
$1,000
($250 for group investments). However, there is no
minimum initial investment for certain group retirement
plans using salary deduction or similar group methods
of payment, for fee-based or wrap accounts of selling
firms that have executed a fee-based or wrap agreement
with the distributor, or for certain other eligible
investment product platforms. |
|
Class
I |
$250,000.
However, the minimum initial investment requirement
may be waived, at the fund’s sole discretion, for
investors in certain fee-based, wrap, or other investment
platform programs, or in certain brokerage platforms
where the intermediary is acting solely as an agent
for the investor. The fund also may waive the minimum
initial investment for other categories of investors
at its discretion, including for Trustees, employees
of the advisor or its affiliates, employees of the
subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age
21) of the aforementioned. |
|
|
|
Share
Class |
Minimum
initial investment |
|
Class
R6 |
$1
million. However, there is no minimum initial investment
requirement for: (i) qualified and nonqualified plan
investors; (ii) certain eligible qualifying investment product
platforms; or (iii) Trustees, employees of the advisor
or its affiliates, employees of the subadvisor, members
of the fund’s portfolio management team and the
spouses and children (under age 21) of the aforementioned. |
| 4 |
All
Class A, Class C, Class I and
Class R6 shareholders must complete the
account application, carefully following the instructions. If you
have
any questions, please contact your financial professional or call
Signature
Services at 800-225-5291 for Class A and Class C shares or
888-972-8696 for Class I and Class R6 shares. |
| 5 |
Eligible
retirement plans generally may open an account and purchase Class
R2 or Class R4 shares by contacting any broker-dealer or other
financial
service firm authorized to sell Class R2 or Class R4 shares of
the
fund. Additional shares may be purchased through a retirement plan’s
administrator or recordkeeper. |
| 6 |
For
Class A and Class C shares, complete the appropriate parts of the
account
privileges application. By applying for privileges now, you can
avoid
the delay and inconvenience of having to file an additional application
if you want to add privileges later. |
| 7 |
For
Class A, Class C, Class I and
Class R6 shares, make your initial investment
using the instructions under “Buying shares.” You and your financial
professional can initiate any purchase, exchange, or sale of shares. |
Important
information about opening a new account
To help the
government fight the funding of terrorism and money laundering
activities, the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001 (USA PATRIOT Act) requires all financial institutions
to obtain, verify, and record information that identifies each person or
entity that opens an account.
For
individual investors opening an account. When you
open an account,
you will be asked for your name, residential address, date of birth, and
Social Security number.
For
investors other than individuals. When you
open an account, you will be
asked for the name of the entity, its principal place of business, and
taxpayer identification number (TIN), and you may be requested to provide
information on persons with authority or control over the account,
including, but not limited to, name, residential address, date of birth, and
Social Security number. You may also be asked to provide documents,
such as articles of incorporation, trust instruments, or partnership
agreements, and other information that will help Signature Services
identify the entity. Please see the mutual fund account application
for more details.
Information
for plan participants
Plan
participants generally must contact their plan service provider to purchase,
redeem, or exchange shares. The administrator of a retirement
plan or employee benefits office can provide participants with detailed
information on how to participate in the plan, elect a fund as an investment
option, elect different investment options, alter the amounts
contributed
to the plan, or change allocations among investment options.
For questions about participant accounts, participants should contact
their employee benefits office, the plan administrator, or the organization
that provides recordkeeping services for the plan.
Financial
service firms may provide some of the shareholder servicing and account
maintenance services required by retirement plan accounts and their
plan participants, including transfers of registration, dividend payee
changes, and generation of confirmation statements, and may arrange for
plan administrators to provide other investment or administrative
services. Financial service firms may charge retirement plans and
plan participants transaction fees and/or other additional amounts for
such services. Similarly, retirement plans may charge plan participants
for certain expenses. These fees and additional amounts could
reduce an investment return in the fund.
Buying
shares
Class
A and Class C shares
|
|
|
Opening
an account |
Adding
to an account |
|
By
check |
|
|
|
-
Fill
out the detachable investment slip from an account statement. If no
slip
is available, include a note specifying the fund name, the share class,
your
account number, and the name(s) in which the account is
registered.
|
|
By
exchange |
|
|
|
|
|
By
wire |
|
-
Instruct
your bank to wire the amount of your investment. Specify the
fund
name, the share class, your account number, and the name(s) in
which
the account is registered. Your bank may charge a fee to wire
funds. |
-
Instruct
your bank to wire the amount of your investment. Specify the fund
name,
the share class, your account number, and the name(s) in which the
account
is registered. Your bank may charge a fee to wire
funds. |
|
By
internet |
|
|
|
|
|
By
phone |
|
|
|
-
Call
your financial professional or call Signature Services between 8:00
A.M.
and 7:00 P.M.,
Monday–Thursday, and on Friday, between 8:00 A.M.
and 6:00
P.M.,
Eastern time.
To
add to an account using the Monthly Automatic Accumulation Program,
see
“Additional investor services.” |
|
|
|
|
|
|
Regular
mail
John
Hancock Signature
Services,
Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature
Services,
Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
EASI-Line
(24/7
automated service)
800-338-8080 |
Signature
Services, Inc.
800-225-5291 |
Buying
shares
Class
I shares
|
|
|
Opening
an account |
Adding
to an account |
|
By
check |
|
|
|
-
If
your account statement has a detachable investment slip, please
complete
it in its entirety. If no slip is available, include a note specifying
the
fund name, your share class, your account number, and the name(s) in
which
the account is registered.
|
|
By
exchange |
|
|
|
|
|
By
wire |
|
-
Instruct
your bank to wire the amount of your investment. Specify the
fund
name, the share class, your account number, and the name(s) in
which
the account is registered. Your bank may charge a fee to wire
funds. |
-
Instruct
your bank to wire the amount of your investment. Specify the fund
name,
the share class, your account number, and the name(s) in which the
account
is registered. Your bank may charge a fee to wire
funds. |
|
By
internet |
|
|
|
|
|
By
phone |
|
|
|
|
|
|
|
|
|
Regular
mail
John
Hancock Signature Services, Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature Services, Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
Signature
Services, Inc.
888-972-8696 |
Buying
shares
Class
R6 shares
|
|
|
Opening
an account |
Adding
to an account |
|
By
check |
|
|
|
-
If
your account statement has a detachable investment slip, please
complete
it in its entirety. If no slip is available, include a note specifying
the
fund name, the share class, your account number, and the name(s) in
which
the account is registered.
|
|
By
exchange |
|
|
|
|
|
By
wire |
|
-
Instruct
your bank to wire the amount of your investment. Specify the
fund
name, the share class, your account number, and the name(s) in
which
the account is registered. Your bank may charge a fee to wire
funds. |
-
Instruct
your bank to wire the amount of your investment. Specify the fund
name,
the share class, your account number, and the name(s) in which the
account
is registered. Your bank may charge a fee to wire
funds. |
|
By
internet |
|
|
|
|
|
By
phone |
|
|
|
|
|
|
|
|
|
Regular
mail
John
Hancock Signature Services, Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature Services, Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
Signature
Services, Inc.
888-972-8696 |
Selling
shares
Class
A and Class C shares
|
|
|
|
To
sell some or all of your shares |
|
By
letter |
|
|
|
-
Write
a letter of instruction or complete a stock power indicating the fund
name,
the share class, your account number, the name(s) in which the
account
is registered, and the dollar value or number of shares you wish to
sell.
|
|
By
internet |
|
|
|
|
|
By
phone |
|
|
|
-
Call
your financial professional or call Signature Services between 8:00
A.M.
and
7:00 P.M.,
Monday–Thursday, and on Friday, between 8:00 A.M.
and
6:00
P.M.,
Eastern time. |
|
By
wire or electronic funds transfer (EFT) |
|
|
|
|
|
By
exchange |
|
|
|
To
sell shares through a systematic withdrawal plan, see “Additional investor
services.” |
|
|
|
|
|
|
Regular
mail
John
Hancock Signature
Services,
Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature
Services,
Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
EASI-Line
(24/7
automated service)
800-338-8080 |
Signature
Services, Inc.
800-225-5291 |
Selling
shares in writing
Class
A and Class C shares
In certain
circumstances, you will need to make your request to sell shares in writing. You
may need to include additional items with your request, unless they
were previously provided to Signature Services and are still accurate. These
items are shown in the table below. You may also need to include a
signature guarantee, which protects you against fraudulent orders. You will need
a signature guarantee if:
|
• |
your
address or bank of record has changed within the past 30 days, and you
would like the payment to be sent to your new address or
bank, |
|
• |
you
are selling more than $100,000 worth of shares (this requirement is waived
for certain entities operating under a signed fax trading agreement
with
John Hancock), or |
|
• |
you
are requesting payment other than by a check mailed to the address/bank of
record and payable to the registered
owner(s). |
You will
need to obtain your signature guarantee from a member of the Medallion Signature
Guarantee Program. Most broker-dealers, banks, credit unions, and
securities exchanges are members of this program. A notary public CANNOT provide
a signature guarantee.
|
|
|
Seller |
Requirements
for written requests |
|
Owners
of individual, joint, or UGMA/UTMA accounts (custodial accounts
for minors) |
|
|
Owners
of corporate, sole proprietorship, general partner, or association
accounts |
|
|
Owners
or trustees of trust accounts |
|
|
Joint
tenancy shareholders with rights of survivorship with deceased
co-tenant(s) |
|
|
Executors
of shareholder estates |
|
|
Administrators,
conservators, guardians, and other sellers, or account types
not listed above |
|
|
|
|
|
|
|
Regular
mail
John
Hancock Signature
Services,
Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature
Services,
Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
EASI-Line
(24/7
automated service)
800-338-8080 |
Signature
Services, Inc.
800-225-5291 |
Selling
shares
Class
I shares
|
|
|
|
To
sell some or all of your shares |
|
By
letter |
|
|
|
-
Write
a letter of instruction or complete a stock power indicating the fund
name,
the share class, your account number, the name(s) in which the
account
is registered, and the dollar value or number of shares you wish to
sell.
|
|
By
internet |
|
|
|
|
|
By
phone |
|
|
Amounts
up to $100,000:
Amounts
up to $5 million:
-
Available
to the following types of accounts: custodial accounts held by
banks, trust companies, or broker-dealers; endowments and foundations;
corporate accounts; group retirement plans; and pension
accounts (excluding IRAs, 403(b) plans, and all John Hancock
custodial retirement accounts) |
-
To
place your request with a representative at John Hancock, call
Signature
Services between 8:30 A.M.
and 5:00 P.M.,
Eastern time, on most business
days, or contact your financial professional.
-
Redemption
proceeds exceeding $100,000 will be wired to your designated
bank account, unless a Medallion signature guaranteed letter
is
provided requesting payment by check. Please refer to “Selling shares in
writing.” |
|
By
wire or electronic funds transfer (EFT) |
|
|
|
|
|
By
exchange |
|
|
|
|
|
|
|
|
|
Regular
mail
John
Hancock Signature Services, Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature Services, Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
Signature
Services, Inc.
888-972-8696 |
Selling
shares in writing
Class
I shares
In certain
circumstances, you will need to make your request to sell shares in writing. You
may need to include additional items with your request, unless they
were previously provided to Signature Services and are still accurate. These
items are shown in the table below. You may also need to include a
signature guarantee, which protects you against fraudulent orders. You will need
a signature guarantee if:
|
• |
your
address or bank of record has changed within the past 30 days, and you
would like the payment to be sent to your new address or
bank; |
|
• |
you
are selling more than $100,000 worth of shares and are requesting payment
by check (this requirement is waived for certain entities operating
under
a signed fax trading agreement with John
Hancock); |
|
• |
you
are selling more than $5 million worth of shares from the following types
of accounts: custodial accounts held by banks, trust companies, or
broker-dealers;
endowments and foundations; corporate accounts; group retirement plans;
and pension accounts (excluding IRAs, 403(b) plans, and
all John Hancock custodial retirement accounts);
or |
|
• |
you
are requesting payment other than by a check mailed to the address/bank of
record and payable to the registered
owner(s). |
You will
need to obtain your signature guarantee from a member of the Medallion Signature
Guarantee Program. Most broker-dealers, banks, credit unions, and
securities exchanges are members of this program. A notary public CANNOT provide
a signature guarantee.
|
|
|
Seller |
Requirements
for written requests |
|
Owners
of individual, joint, or UGMA/UTMA accounts (custodial accounts
for minors) |
|
|
Owners
of corporate, sole proprietorship, general partner, or association
accounts |
|
|
Owners
or trustees of trust accounts |
|
|
Joint
tenancy shareholders with rights of survivorship with deceased
co-tenant(s) |
|
|
Executors
of shareholder estates |
|
|
Administrators,
conservators, guardians, and other sellers, or account types
not listed above |
|
|
|
|
|
|
Regular
mail
John
Hancock Signature Services, Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature Services, Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
Signature
Services, Inc.
888-972-8696 |
Selling
shares
Class
R6 shares
|
|
|
|
To
sell some or all of your shares |
|
By
letter |
|
|
|
-
Write
a letter of instruction or complete a stock power indicating the fund
name,
the share class, your account number, the name(s) in which the
account
is registered, and the dollar value or number of shares you wish to
sell.
|
|
By
internet |
|
|
|
|
|
By
phone |
|
|
Amounts
up to $5 million:
|
-
To
place your request with a representative at John Hancock, call
Signature
Services between 8:30 A.M.
and 5:00 P.M.,
Eastern time, on most business
days, or your financial professional.
-
Redemption
proceeds exceeding $100,000 will be wired to your designated
bank account, unless a Medallion signature guaranteed letter
is
provided requesting payment by check. Please refer to “Selling shares in
writing.” |
|
By
wire or electronic funds transfer (EFT) |
|
|
|
|
|
By
exchange |
|
|
|
|
|
|
|
|
|
Regular
mail
John
Hancock Signature Services, Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature Services, Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
Signature
Services, Inc.
888-972-8696 |
Selling
shares in writing
Class
R6 shares
In certain
circumstances, you will need to make your request to sell shares in writing. You
may need to include additional items with your request, unless they
were previously provided to Signature Services and are still accurate. These
items are shown in the table below. You may also need to include a
signature guarantee, which protects you against fraudulent orders. You will need
a signature guarantee if:
|
• |
your
address or bank of record has changed within the past 30 days, and you
would like the payment to be sent to your new address or
bank; |
|
• |
you
are selling more than $100,000 worth of shares and are requesting payment
by check (this requirement is waived for certain entities operating
under
a signed fax trading agreement with John
Hancock); |
|
• |
you
are selling more than $5 million worth of shares from the following types
of accounts: custodial accounts held by banks, trust companies, or
broker-dealers;
endowments and foundations; corporate accounts; and group retirement
plans; or |
|
• |
you
are requesting payment other than by a check mailed to the address/bank of
record and payable to the registered
owner(s). |
You will
need to obtain your signature guarantee from a member of the Medallion Signature
Guarantee Program. Most broker-dealers, banks, credit unions, and
securities exchanges are members of this program. A notary public CANNOT provide
a signature guarantee.
|
|
|
Seller |
Requirements
for written requests |
|
Owners
of individual, joint, or UGMA/UTMA accounts (custodial accounts
for minors) |
|
|
Owners
of corporate, sole proprietorship, general partner, or association
accounts |
|
|
Owners
or trustees of trust accounts |
|
|
Joint
tenancy shareholders with rights of survivorship with deceased
co-tenant(s) |
|
|
Executors
of shareholder estates |
|
|
Administrators,
conservators, guardians, and other sellers, or account types
not listed above |
|
|
|
|
|
|
Regular
mail
John
Hancock Signature Services, Inc.
P.O.
Box 219909
Kansas
City, MO 64121-9909 |
Express
delivery
John
Hancock Signature Services, Inc.
430 W
7th Street
Suite
219909
Kansas
City, MO 64105-1407 |
Website
jhinvestments.com |
Signature
Services, Inc.
888-972-8696 |
Transaction
policies
Valuation
of shares
The net
asset value (NAV) for each class of shares of the fund is normally determined
once daily as of the close of regular trading on the New York Stock
Exchange (NYSE) (typically 4:00 P.M., Eastern
time, on each business
day that the NYSE is open). In case of emergency or other disruption
resulting in the NYSE not opening for trading or the NYSE closing at
a time other than the regularly scheduled close, the NAV may be
determined as of the regularly scheduled close of the NYSE pursuant to the
fund’s Valuation Policies and Procedures. The time at which shares and
transactions are priced and until which orders are accepted may vary to
the extent permitted by the Securities and Exchange Commission
and applicable regulations. On holidays or other days when the NYSE is
closed, the NAV is not calculated and the fund does not transact
purchase or redemption requests. Trading of securities that are primarily
listed on foreign exchanges may take place on weekends and U.S.
business holidays on which the fund’s NAV is not calculated. Consequently,
the fund’s portfolio securities may trade and the NAV of the fund’s
shares may be significantly affected on days when a shareholder
will not be able to purchase or redeem shares of the fund.
Each class
of shares of the fund has its own NAV, which is computed by dividing
the total assets, minus liabilities, allocated to each share class by the
number of fund shares outstanding for that class. The current NAV of the
fund is available on our website at jhinvestments.com.
Valuation
of securities
Portfolio
securities are valued by various methods that are generally described
below. Portfolio securities also may be fair valued by the fund’s
Pricing Committee in certain instances pursuant to procedures established
by the Trustees. Equity securities are generally valued at the last sale
price or, for certain markets, the official closing price as of the close of
the relevant exchange. Securities not traded on a particular day are valued
using last available bid prices. A security that is listed or traded on
more than one exchange is typically valued at the price on the exchange
where the security was acquired or most likely will be sold. In certain
instances, the Pricing Committee may determine to value equity securities
using prices obtained from another exchange or market if trading on
the exchange or market on which prices are typically obtained did not
open for trading as scheduled, or if trading closed earlier than scheduled,
and trading occurred as normal on another exchange or market.
Equity securities traded principally in foreign markets are typically
valued using the last sale price or official closing price in the relevant
exchange or market, as adjusted by an independent pricing vendor to
reflect fair value. On any day a foreign market is closed and the NYSE is
open, any foreign securities will typically be valued using the last
price or
official closing price obtained from the relevant exchange on the prior
business day adjusted based on information provided by an independent
pricing vendor to reflect fair value. Debt obligations are typically
valued based on evaluated prices provided by an independent pricing
vendor. The value of securities denominated in foreign currencies is
converted into U.S. dollars at the exchange rate supplied by an independent
pricing vendor. Forward foreign currency contracts are valued at
the prevailing forward rates which are based on foreign currency
exchange spot rates and forward points supplied by an independent
pricing vendor. Exchange-traded options are valued at the mid-price
of the last quoted bid and ask prices. Futures contracts whose
settlement
prices are determined as of the close of the NYSE are typically
valued based on the settlement price while other futures contracts
are typically valued at the last traded price on the exchange on which they
trade. Foreign equity index futures that trade in the electronic trading
market subsequent to the close of regular trading may be valued at the last
traded price in the electronic trading market as of the close of the NYSE,
or may be fair valued based on fair value adjustment factors provided by
an independent pricing vendor in order to adjust for events that may
occur between the close of foreign exchanges or markets and the close
of the NYSE. Swaps and unlisted options are generally valued using
evaluated prices obtained from an independent pricing vendor. Shares of
other open-end investment companies that are not exchange-traded
funds (underlying funds) are valued based on the NAVs of such
underlying funds.
Pricing
vendors may use matrix pricing or valuation models that utilize certain
inputs and assumptions to derive values, including transaction data,
broker-dealer quotations, credit quality information, general market
conditions, news, and other factors and assumptions. The fund may receive
different prices when it sells odd-lot positions than it would receive for
sales of institutional round lot positions. Pricing vendors generally
value securities assuming orderly transactions of institutional round lot
sizes, but a fund may hold or transact in such securities in smaller,
odd lot sizes.
The Pricing
Committee engages in oversight activities with respect to pricing
vendors, which includes, among other things, monitoring significant
or unusual price fluctuations above predetermined tolerance levels from
the prior day, back-testing of pricing vendor prices against actual
trades, conducting periodic due diligence meetings and reviews, and
periodically reviewing the inputs, assumptions and methodologies used by
these vendors. Nevertheless, market quotations, official closing prices, or
information furnished by a pricing vendor could be inaccurate, which could
lead to a security being valued incorrectly.
If market
quotations, official closing prices, or information furnished by a pricing
vendor are not readily available or are otherwise deemed unreliable
or not representative of the fair value of such security because of market-
or issuer-specific events, a security will be valued at its fair value as
determined in good faith by the Trustees. The Trustees are assisted in
their responsibility to fair value securities by the fund’s Pricing
Committee, and the actual calculation of a security’s fair value may be made
by the Pricing Committee acting pursuant to the procedures
established by the Trustees. In certain instances, therefore, the Pricing
Committee may determine that a reported valuation does not reflect
fair value, based on additional information available or other factors,
and may accordingly determine in good faith the fair value of the assets,
which may differ from the reported valuation.
Fair value
pricing of securities is intended to help ensure that a fund’s NAV
reflects the fair market value of the fund’s portfolio securities as of
the close
of regular trading on the NYSE (as opposed to a value that no longer
reflects market value as of such close), thus limiting the opportunity
for aggressive traders or market timers to purchase shares of the fund
at deflated prices reflecting stale security valuations and promptly
sell such shares at a gain, thereby diluting the interests of long-term
shareholders. However, a security’s valuation may differ depending
on the method used for determining value, and no assurance
can be
given that fair value pricing of securities will successfully eliminate
all potential opportunities for such trading gains.
The use of
fair value pricing has the effect of valuing a security based upon the
price the fund might reasonably expect to receive if it sold that security in
an orderly transaction between market participants, but does not
guarantee that the security can be sold at the fair value price. Further,
because of the inherent uncertainty and subjective nature of fair valuation,
a fair valuation price may differ significantly from the value that would
have been used had a readily available market price for the investment
existed and these differences could be material.
Regarding
the fund’s investment in an underlying fund that is not an ETF, which (as
noted above) is valued at such underlying fund’s NAV, the prospectus
for such underlying fund explains the circumstances and effects of
fair value pricing for that underlying fund.
Buy
and sell prices
When you
buy shares, you pay the NAV, plus any applicable sales charges, as
described earlier. When you sell shares, you receive the NAV, minus
any applicable deferred sales charges.
Execution
of requests
The fund is
open for business when the NYSE is open, typically 9:30 A.M.
to 4:00
P.M. Eastern
time, Monday through Friday. A purchase or redemption
order received in good order by the fund prior to the close of regular
trading on the NYSE, on a day the fund is open for business, will be effected
at that day’s NAV. An order received in good order after the fund close
will generally be effected at the NAV determined on the next business
day. In case of emergency or other disruption resulting in the NYSE not
opening for trading or the NYSE closing at a time other than the
regularly scheduled close, the time until which orders are accepted may vary to
the extent permitted by the Securities and Exchange Commission
and applicable regulations. This may result in the fund closing for
business prior to the time at which the fund’s NAV is determined.
In this case, orders submitted after the fund closing may receive the
NAV determined on the next business day.
At times of
peak activity, it may be difficult to place requests by telephone,
if available for your share class. During these times, consider using
EASI-Line (if available for your share class), accessing jhinvestments.com,
or sending your request in writing.
The fund
typically expects to mail or wire redemption proceeds between 1 and 3
business days following the receipt of the shareholder’s redemption
request. Processing time is not dependent on the chosen delivery
method. In unusual circumstances, the fund may temporarily suspend the
processing of sell requests or may postpone payment of proceeds
for up to three business days or longer, as allowed by federal securities
laws.
Under
normal market conditions, the fund typically expects to meet redemption
requests through holdings of cash or cash equivalents or through
sales of portfolio securities, and may access other available liquidity
facilities. In unusual or stressed market conditions, such as, for example,
during a period of time in which a foreign securities exchange is closed,
in addition to the methods used in normal market conditions, the fund
may meet redemption requests through the use of its line of credit,
interfund lending facility, redemptions in kind, or such other
liquidity
means or facilities as the fund may have in place from time to time.
Telephone
transactions
For your
protection, telephone requests may be recorded in order to verify
their accuracy. Also for your protection, telephone redemption transactions
are not permitted on accounts in which a name, mailing address, or
recorded bank has changed within the past 30 days. Proceeds
from telephone transactions can only be sent to the address or bank on
record.
Exchanges
and conversions
You may
exchange Class A or Class C shares of one John Hancock fund for shares
of the same class of any other John Hancock fund that is then offering
that class, generally without paying any sales charges, if applicable.
You may
exchange Class I or Class R6 shares of one John Hancock fund for shares
of the same class of any other John Hancock fund or for John Hancock
Money Market Fund Class A shares.
You may
exchange your Class R2 or Class R4 shares for shares of the same class
of other John Hancock funds that are available through your plan, or
John Hancock Money Market Fund Class A shares.
The
registration for both accounts involved in an exchange must be identical.
Note: Once
exchanged into John Hancock Money Market Fund Class A shares,
shares may only be exchanged back into the original class from which the
shares were exchanged. As
applicable, shares acquired in an exchange
will be subject to the CDSC rate and holding schedule of the fund in
which such shares were originally purchased if and when such shares are
redeemed. For purposes of determining the holding period for calculating
the CDSC, shares will continue to age from their original purchase
date.
Provided
the fund’s eligibility requirements are met, and to the extent the
referenced share class is offered by the fund, an investor in the fund
pursuant to
a fee-based, wrap, or other investment platform program of certain
firms, as determined by the fund, may be afforded an opportunity to make a
conversion of (i) Class A shares and/or Class C shares (not subject to
a CDSC) also owned by the investor in the same fund to Class I shares or
Class R6 shares of that fund; or (ii) Class I shares also owned by the
investor to Class R6 shares of the same fund. Investors that no longer
participate in a fee-based, wrap, or other investment platform program of
certain firms may be afforded an opportunity to make a conversion
to Class A shares of the same fund. Class C shares may be converted
to Class A at the request of the applicable financial intermediary
after the expiration of the CDSC period, provided that the financial
intermediary through which a shareholder purchased or holds Class C
shares has records verifying that the Class C share CDSC period has expired
and the position is held in an omnibus or dealer-controlled account.
The fund may in its sole discretion permit a conversion of one share class
to another share class of the same fund in certain circumstances
other than those described above.
In
addition, Trustees, employees of the advisor or its affiliates, employees
of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned,
may make a conversion of Class A or Class I shares also
owned by
the investor in the same fund to Class R6 shares. If Class R6 shares are
unavailable, such investors may make a conversion of Class A shares in
the same fund to Class I shares.
The
conversion of one share class to another share class of the same fund in
these particular circumstances should not cause the investor to realize
taxable gain or loss. For further details, see “Additional information
concerning taxes” in the SAI for information regarding taxation
upon the redemption or exchange of shares of the fund (see the back cover
of this prospectus).
The fund
may change or cancel its exchange policies at any time, upon 60 days’
written notice to its shareholders. For further details, see “Additional
services and programs” in the SAI (see the back cover of this prospectus).
Excessive
trading
The fund is
intended for long-term investment purposes only and does not
knowingly accept shareholders who engage in market timing or other types of
excessive short-term trading. Short-term trading into and out of the fund
can disrupt portfolio investment strategies and may increase fund
expenses for all shareholders, including long-term shareholders who do not
generate these costs.
Right
to reject or restrict purchase and exchange orders
Purchases
and exchanges should be made primarily for investment purposes.
The fund reserves the right to restrict, reject, or cancel (with respect to
cancellations within one day of the order), for any reason and without any
prior notice, any purchase or exchange order, including transactions
representing excessive trading and transactions accepted by any
shareholder’s financial intermediary. For example, the fund may, in its
discretion, restrict, reject, or cancel a purchase or exchange order
even if the
transaction is not subject to a specific limitation on exchange activity,
as described below, if the fund or its agent determines that accepting
the order could interfere with the efficient management of the fund’s
portfolio, or otherwise not be in the fund’s best interest in light of
unusual
trading activity related to your account. In the event that the fund
rejects or cancels an exchange request, neither the redemption nor the
purchase side of the exchange will be processed. If you would like the
redemption request to be processed even if the purchase order is rejected,
you should submit separate redemption and purchase orders rather than
placing an exchange order. The fund reserves the right to delay for
up to one business day, consistent with applicable law, the processing
of exchange requests in the event that, in the fund’s judgment,
such delay would be in the fund’s best interest, in which case both the
redemption and purchase side of the exchange will receive the fund’s NAV
at the conclusion of the delay period. The fund, through its agents in
their sole discretion, may impose these remedial actions at the account
holder level or the underlying shareholder level.
Exchange
limitation policies
The Board
of Trustees has adopted the following policies and procedures by which
the fund, subject to the limitations described below, takes steps
reasonably designed to curtail excessive trading practices.
Limitation
on exchange activity
The fund or
its agent may reject or cancel a purchase order, suspend or terminate
the exchange privilege, or terminate the ability of an investor to invest
in John Hancock funds if the fund or its agent determines that a
proposed
transaction involves market timing or disruptive trading that it believes is
likely to be detrimental to the fund. The fund or its agent cannot
ensure that it will be able to identify all cases of market timing or
disruptive
trading, although it attempts to have adequate procedures in place to do
so. The fund or its agent may also reject or cancel any purchase
order (including an exchange) from an investor or group of investors
for any other reason. Decisions to reject or cancel purchase orders
(including exchanges) in the fund are inherently subjective and will be
made in a manner believed to be in the best interest of the fund’s shareholders.
The fund does not have any arrangement to permit market timing or
disruptive trading.
Exchanges
made on the same day in the same account are aggregated for
purposes of counting the number and dollar amount of exchanges made by the
account holder. The exchange limits referenced above will not be
imposed or may be modified under certain circumstances. For example,
these exchange limits may be modified for accounts held by certain
retirement plans to conform to plan exchange limits, ERISA considerations,
or U.S. Department of Labor regulations. Certain automated
or preestablished exchange, asset allocation, and dollar-cost-averaging
programs are not subject to these exchange limits. These
programs are excluded from the exchange limitation since the fund
believes that they are advantageous to shareholders and do not offer an
effective means for market timing or excessive trading strategies.
These investment tools involve regular and predetermined purchase or
redemption requests made well in advance of any knowledge
of events affecting the market on the date of the purchase or redemption.
These
exchange limits are subject to the fund’s ability to monitor exchange
activity, as discussed under “Limitation on the ability to detect and curtail
excessive trading practices” below. Depending upon the composition
of the fund’s shareholder accounts, and in light of the limitations
on the ability of the fund to detect and curtail excessive trading
practices, a significant percentage of the fund’s shareholders may not be
subject to the exchange limitation policy described above. In applying
the exchange limitation policy, the fund considers information available
to it at the time and reserves the right to consider trading activity in
a single account or multiple accounts under common ownership,
control, or influence.
Limitation
on the ability to detect and curtail excessive trading practices
Shareholders
seeking to engage in excessive trading practices sometimes
deploy a variety of strategies to avoid detection and, despite the efforts
of the fund to prevent excessive trading, there is no guarantee that the
fund or its agent will be able to identify such shareholders or curtail
their trading practices. The ability of the fund and its agent to detect and
curtail excessive trading practices may also be limited by operational
systems and technological limitations. Because the fund will not always
be able to detect frequent trading activity, investors should not assume
that the fund will be able to detect or prevent all frequent trading or
other practices that disadvantage the fund. For example, the ability of
the fund to monitor trades that are placed by omnibus or other nominee
accounts is severely limited in those instances in which the financial
intermediary, including a financial advisor, broker, retirement plan
administrator, or fee-based program sponsor, maintains the records of
the fund’s underlying beneficial owners. Omnibus or other
nominee
account arrangements are common forms of holding shares of the fund,
particularly among certain financial intermediaries, such as financial
advisors, brokers, retirement plan administrators, or fee-based program
sponsors. These arrangements often permit the financial intermediary
to aggregate its clients’ transactions and ownership positions
and do not identify the particular underlying shareholder(s) to the fund.
However, the fund will work with financial intermediaries as necessary
to discourage shareholders from engaging in abusive trading practices
and to impose restrictions on excessive trades. In this regard, the fund
has entered into information-sharing agreements with financial intermediaries
pursuant to which these intermediaries are required to provide to
the fund, at the fund’s request, certain information relating to their
customers investing in the fund through omnibus or other nominee accounts.
The fund will use this information to attempt to identify excessive
trading practices. Financial intermediaries are contractually required to
follow any instructions from the fund to restrict or prohibit future
purchases from shareholders that are found to have engaged in excessive
trading in violation of the fund’s policies. The fund cannot guarantee
the accuracy of the information provided to it from financial intermediaries
and so cannot ensure that it will be able to detect abusive trading
practices that occur through omnibus or other nominee accounts.
As a consequence, the fund’s ability to monitor and discourage
excessive trading practices in these types of accounts may be
limited.
Excessive
trading risk
To the
extent that the fund or its agent is unable to curtail excessive trading
practices in the fund, these practices may interfere with the efficient
management of the fund’s portfolio and may result in the fund engaging in
certain activities to a greater extent than it otherwise would, such as
maintaining higher cash balances, using its line of credit, and engaging in
increased portfolio transactions. Increased portfolio transactions
and use of the line of credit would correspondingly increase the fund’s
operating costs and decrease the fund’s investment performance.
Maintenance of higher levels of cash balances would likewise
result in lower fund investment performance during periods of rising
markets.
While
excessive trading can potentially occur in the fund, certain types of funds
are more likely than others to be targets of excessive trading. For
example:
|
• |
A
fund that invests a significant portion of its assets in small- or
mid-capitalization
stocks or securities in particular industries that may trade
infrequently or are fair valued as discussed under “Valuation of
securities”
entails a greater risk of excessive trading, as investors may seek
to trade fund shares in an effort to benefit from their understanding
of the value of those types of securities (referred to as price
arbitrage). |
|
• |
A
fund that invests a material portion of its assets in securities of
foreign
issuers may be a potential target for excessive trading if investors
seek to engage in price arbitrage based upon general trends in
the securities markets that occur subsequent to the close of the
primary
market for such securities. |
|
• |
A
fund that invests a significant portion of its assets in below-investment-grade
(junk) bonds that may trade infrequently or are
fair valued as discussed under “Valuation of securities” incurs a
greater
risk of excessive trading, as investors may seek to trade fund
|
|
|
shares
in an effort to benefit from their understanding of the value of
those
types of securities (referred to as price
arbitrage). |
Any
frequent trading strategies may interfere with efficient management of a fund’s
portfolio and raise costs. A fund that invests in the types of securities
discussed above may be exposed to this risk to a greater degree than
a fund that invests in highly liquid securities. These risks would be
less significant, for example, in a fund that primarily invests in U.S.
government securities, money market instruments, investment-grade
corporate issuers, or large-capitalization U.S. equity securities.
Any successful price arbitrage may cause dilution in the value of the fund
shares held by other shareholders.
Account
information
The fund is
required by law to obtain information for verifying an account holder’s
identity. For example, an individual will be required to supply his or her
name, residential address, date of birth, and Social Security number. If
you do not provide the required information, we may not be able to
open your account. If verification is unsuccessful, the fund may close your
account, redeem your shares at the next NAV, minus any applicable
sales charges, and take any other steps that it deems reasonable.
Certificated
shares
The fund
does not issue share certificates. Shares are electronically recorded.
Sales
in advance of purchase payments
When you
place a request to sell shares for which the purchase money has not yet
been collected, the request will be executed in a timely fashion,
but the fund will not release the proceeds to you until your purchase
payment clears. This may take up to 10 business days after the
purchase.
Dividends
and account policies
Account
statements
For Class A
and Class C shares, in general, you will receive account statements
as follows:
|
• |
after
every transaction (except a dividend reinvestment, automatic investment,
or systematic withdrawal) that affects your account balance |
|
• |
after
any changes of name or address of the registered
owner(s) |
|
• |
in
all other circumstances, every quarter |
For Class I
and Class R6 shares, in general, you will receive account statements
as follows:
|
• |
after
every transaction (except a dividend reinvestment) that affects
your
account balance |
|
• |
after
any changes of name or address of the registered
owner(s) |
|
• |
in
all other circumstances, every quarter |
For Class
R2 and Class R4 shares, you will receive account statements from your
plan’s recordkeeper.
Every year
you should also receive, if applicable, a Form 1099 tax information
statement, mailed by February 15. For Class
R2 and Class R4 shares,
this information statement will be mailed by your plan’s recordkeeper.
Dividends
The fund
typically declares and pays income dividends and capital gains, if any, at
least annually.
Dividend
reinvestments
Most
investors have their dividends reinvested in additional shares of the
same class
of the same fund. If you choose this option, or if you do not indicate
any choice, your dividends will be reinvested. Alternatively, you may choose
to have your dividends and capital gains sent directly to your bank
account or a check may be mailed if your combined dividend and capital
gains amount is $10 or more. However, if the check is not deliverable
or the combined dividend and capital gains amount is less than $10,
your proceeds will be reinvested. If five or more of your dividend or
capital gains checks remain uncashed after 180 days, all subsequent
dividends and capital gains will be reinvested. No front-end sales
charge or CDSC will be imposed on shares derived from reinvestment
of dividends or capital gains distributions.
Taxability
of dividends
For
investors who are not exempt from federal income taxes, dividends you receive
from the fund, whether reinvested or taken as cash, are generally
considered taxable. Dividends from the fund’s short-term capital
gains are taxable as ordinary income. Dividends from the fund’s long-term
capital gains are taxable at a lower rate. Whether gains are short term
or long term depends on the fund’s holding period. Some dividends
paid in January may be taxable as if they had been paid the previous
December.
The Form
1099 that is mailed to you every February, if applicable, details
your dividends and their federal tax category, although you should
verify your tax liability with your tax professional.
Returns
of capital
If the
fund’s distributions exceed its taxable income and capital gains realized
during a taxable year, all or a portion of the distributions made in the same
taxable year may be recharacterized as a return of capital to shareholders.
A return of capital distribution will generally not be taxable,
but will reduce each shareholder’s cost basis in the fund and result in a
higher reported capital gain or lower reported capital loss when those
shares on which the distribution was received are sold.
Taxability
of transactions
Any time
you sell or exchange shares, it is considered a taxable event for you if you
are not exempt from federal income taxes. Depending on the purchase
price and the sale price of the shares you sell or exchange, you may have a
gain or a loss on the transaction. You are responsible for any tax
liabilities generated by your transactions.
Small
accounts
If the
value of your account of Class A or Class C shares is less than $1,000, you
may be asked to purchase more shares within 30 days. If you do not
take action, the fund may close out your account and mail you the
proceeds. Alternatively, the fund may charge you $20 a year to maintain
your account. You will not be charged a CDSC if your account is closed for
this reason.
Additional
investor services
Monthly
Automatic Accumulation Program (MAAP)
MAAP lets
you set up regular investments from paychecks or bank accounts to
the John Hancock fund(s) to purchase Class A and Class C shares.
Investors determine the frequency and amount of investments ($25
minimum per month), and they can terminate the program at any time. To
establish, you must satisfy the minimum initial investment requirements
specified in the section “Opening an account” and complete
the appropriate parts of the account application.
Systematic
withdrawal plan
This plan
may be used for routine bill payments or periodic withdrawals from your
account of Class A and Class C shares. To
establish:
|
• |
Make
sure you have at least $5,000 worth of shares in your
account. |
|
• |
Make
sure you are not planning to invest more money in this account
(buying
shares during a period when you are also selling shares of the
same
fund is not advantageous to you because of sales
charges). |
|
• |
Specify
the payee(s). The payee may be yourself or any other party, and
there is no limit to the number of payees you may have, as long as
they
are all on the same payment schedule. |
|
• |
Determine
the schedule: monthly, quarterly, semiannually, annually, or in
certain selected months. |
|
• |
Fill
out the relevant part of the account application. To add a systematic
withdrawal plan to an existing account, contact your financial
professional or Signature Services. |
Retirement
plans
John
Hancock funds offer a range of retirement plans, including Traditional
and Roth IRAs, Coverdell ESAs, SIMPLE plans, and SEPs. Using these
plans, you can invest in any John Hancock fund.
To find out
more, call
Signature Services at 800-225-5291.
John
Hancock does not accept requests to establish new John Hancock custodial
403(b)(7) accounts, does not accept requests for exchanges or
transfers into your existing John Hancock custodial 403(b)(7) accounts,
and requires additional disclosure documentation if you direct John
Hancock to exchange or transfer some or all of your John Hancock custodial
403(b)(7) account assets to another 403(b)(7) contract or account. In
addition, the fund no longer accepts salary deferrals into 403(b)(7)
accounts. Please refer to the SAI for more information regarding
these restrictions.
Disclosure
of fund holdings
The
following information for the fund is posted on the website, jhinvestments.com,
generally on the fifth business day after month end: top 10
holdings; top 10 sector analysis; total return/yield; top 10 countries;
average quality/maturity; beta/alpha; and top 10 portfolio composition.
All of the holdings of the fund will be posted to the website no earlier
than 15 days after each calendar month end, and will remain posted on
the website for six months. All of the fund’s holdings as of the end of the
third month of every fiscal quarter will be disclosed on Form N-PORT
within 60 days of the end of the fiscal quarter. All of the fund’s holdings as
of the end of the second and fourth fiscal quarters will be disclosed
on Form N-CSR within 70 days of the end of such fiscal quarters. A
description of the fund’s policies and procedures with respect to
the disclosure of its portfolio securities is available in the
SAI.
Appendix
1 - Intermediary sales charge waivers
Intermediary
sales charge waivers
Merrill Lynch, Pierce, Fenner & Smith
Incorporated (Merrill Lynch)
Effective
June
30, 2020,
shareholders purchasing fund shares through a Merrill
Lynch platform or account are eligible only for the following load
waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those
disclosed elsewhere in this fund’s prospectus or SAI:
Front-end
Sales Load Waivers on Class A shares available at Merrill
Lynch
|
• |
Employer-sponsored
retirement, deferred compensation and employee
benefit plans (including health savings accounts) and trusts used
to fund those plans, provided that the shares are not held in a
commission-based
brokerage account and shares are held for the benefit
of the plan |
|
• |
Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific
share classes or equivalents) |
|
• |
Shares
purchased through a Merrill Lynch affiliated investment advisory
program |
|
• |
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated
investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales
load discounts and waivers |
|
• |
Shares
purchased by third party investment advisors on behalf of their
advisory
clients through Merrill Lynch’s platform |
|
• |
Shares
of funds purchased through the Merrill Edge Self-Directed platform
(if applicable) |
|
• |
Shares
purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but
not any other fund within the fund
family) |
|
• |
Shares
exchanged from Class C (i.e. level-load) shares of the same fund
pursuant to Merrill Lynch’s policies relating to sales load discounts
and waivers |
|
• |
Employees
and registered representatives of Merrill Lynch or its affiliates
and their family members |
|
• |
Directors
or Trustees of the fund, and employees of the fund’s investment
adviser or any of its affiliates, as described in the prospectus |
|
• |
Eligible
shares purchased from the proceeds of redemptions within the
same fund family, provided (1) the repurchase occurs within 90
days
following the redemption, (2) the redemption and purchase occur
in
the same account, and (3) redeemed shares were subject to a front-end
or deferred sales load (known as Rights of Reinstatement). Automated
transactions (i.e. systematic purchases and withdrawals) and
purchases made after shares are automatically sold to pay Merrill
Lynch’s
account maintenance fees are not eligible for
reinstatement |
CDSC
Waivers on Class A and Class C shares available at Merrill Lynch
|
• |
Death
or disability of the shareholder |
|
• |
Shares
sold as part of a systematic withdrawal plan as described in the
fund’s prospectus |
|
• |
Return
of excess contributions from an IRA
Account |
|
• |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts pursuant to the Internal Revenue
Code |
|
• |
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated
by Merrill Lynch |
|
• |
Shares
acquired through a Right of Reinstatement |
|
• |
Shares
held in retirement brokerage accounts, that are exchanged for a
lower cost share class due to transfer to certain fee based accounts
or
platforms (applicable to Class A and Class C shares
only) |
|
• |
Shares
received through an exchange due to the holdings moving from a
Merrill Lynch affiliated investment advisory program to a Merrill
Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies
relating to sales load discounts and
waivers |
Front-end
Load Discounts Available at Merrill Lynch; Breakpoints,
Rights of Accumulation & Letters of Intent
|
• |
Breakpoints
as described in the fund’s prospectus |
|
• |
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint
discounts
as described in the fund’s prospectus will be automatically calculated
based on the aggregated holding of fund family assets held by
accounts (including 529 program holdings where applicable) within
the
purchaser’s household at Merrill Lynch. Eligible fund family assets
not
held at Merrill Lynch may be included in the ROA calculation only if
the
shareholder notifies his or her financial professional about such
assets |
|
• |
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through Merrill Lynch, over a
13-month period of time (if applicable) |
Ameriprise Financial Services, Inc.
(Ameriprise Financial)
The
following information applies to Class A shares purchases if you
have
an account with or otherwise purchase fund shares through Ameriprise
Financial:
Effective
January 15, 2021, shareholders purchasing fund shares through an
Ameriprise Financial retail brokerage account are eligible for the
following front-end sales charge waivers, which may differ from those
disclosed
elsewhere in this fund’s prospectus or SAI:
Class A
Shares Front-End Sales Charge Waivers Available at Ameriprise
Financial
|
• |
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension
plans and defined benefit plans). For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs |
|
• |
Shares
purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but
not any other fund within the same fund
family) |
|
• |
Shares
exchanged from Class C shares of the same fund in the month of or
following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect
to exchanges of Class C shares or conversion of Class C shares
following a shorter holding period, that waiver will
apply |
|
• |
Employees
and registered representatives of Ameriprise Financial or its
affiliates and their immediate family
members |
|
• |
Shares
purchased by or through qualified accounts (including IRAs, Coverdell
Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to
ERISA and defined benefit plans) that are held by a covered family
member,
defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother,
grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson,
granddaughter, great grandson, great granddaughter) or any
spouse of a covered family member who is a lineal
descendant |
|
• |
Shares
purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within 90 days following
the redemption, (2) the redemption and purchase occur in the
same account, and (3) redeemed shares were subject to a front-end
or deferred sales load (i.e. Rights of
Reinstatement) |
In
addition, shareholders purchasing fund shares that are available through an
Ameriprise Financial Advisory account are eligible for front-end
sales charge waivers, which may differ from those disclosed elsewhere
in this fund’s prospectus or SAI.
Morgan Stanley Smith Barney (Morgan
Stanley)
Effective
July 1, 2018, shareholders purchasing fund shares through a Morgan
Stanley Wealth Management transactional brokerage account which is
not held directly at the fund are eligible only for the following front-end
sales charge waivers with respect to Class A shares, which may differ from
and may be more limited than those disclosed elsewhere in this fund’s
Prospectus or SAI:
Front-end
Sales Charge Waivers on Class A Shares available at Morgan
Stanley Wealth Management
|
• |
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension
plans and defined benefit plans). For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs, SAR-SEPs or Keogh plans |
|
• |
Morgan
Stanley employee and employee-related accounts according to
Morgan Stanley’s account linking rules |
|
• |
Shares
purchased through reinvestment of dividends and capital gains distributions
when purchasing shares of the same fund |
|
• |
Shares
purchased through a Morgan Stanley self-directed brokerage account |
|
• |
Class
C (i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of
the same fund by Morgan Stanley Wealth Management pursuant to its
share class conversion program |
|
• |
Shares
purchased from the proceeds of redemptions within the same fund
family, provided (i) the repurchase occurs within 90 days following
the redemption, (ii) the redemption and purchase occur in the
same account, and (iii) redeemed shares were subject to a front-end
or deferred sales charge |
Raymond James & Associates, Inc., Raymond
James Financial Services, Inc. and each entity’s affiliates
(Raymond James)
Effective
March 1, 2019, shareholders purchasing fund shares through a Raymond
James platform or account, or through an introducing broker-dealer
or independent registered investment adviser for which Raymond
James provides trade execution, clearance, and/or custody
services,
are eligible only for the following load waivers (front-end sales charge
waivers and contingent deferred, or back-end, sales charge waivers)
and discounts, which may differ from those disclosed elsewhere in this
fund’s prospectus or SAI.
Front-end
sales load waivers on Class A shares available at Raymond
James
|
• |
Shares
purchased in an investment advisory
program |
|
• |
Shares
purchased within the same fund family through a systematic reinvestment
of capital gains distributions and dividend reinvestment when
purchasing shares of the same fund |
|
• |
Employees
and registered representatives of Raymond James or its affiliates
and their family members as designated by Raymond
James |
|
• |
Shares
purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within 90 days following
the redemption, (2) the redemption and purchase occur in the
same account, and (3) redeemed shares were subject to a front-end
or deferred sales load (known as Rights of
Reinstatement) |
|
• |
A
shareholder in the fund’s Class C shares will have their shares
converted
at net asset value to Class A shares (or the appropriate share
class) of the fund if the shares are no longer subject to a CDSC
and
the conversion is in line with the policies and procedures of Raymond
James |
CDSC
Waivers on Class A and Class C shares available at Raymond
James
|
• |
Death
or disability of the shareholder |
|
• |
Shares
sold as part of a systematic withdrawal plan as described in the
fund’s prospectus |
|
• |
Return
of excess contributions from an IRA
Account |
|
• |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus |
|
• |
Shares
sold to pay Raymond James fees but only if the transaction is initiated
by Raymond James |
|
• |
Shares
acquired through a right of reinstatement |
Front-end
load discounts available at Raymond James: breakpoints,
and/or rights of accumulation, and/or letters of intent
|
• |
Breakpoints
as described in the fund’s prospectus |
|
• |
Rights
of accumulation which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser’s household
at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation
only if the shareholder notifies his or her financial professional
about such assets |
|
• |
Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13-month time period.
Eligible fund family assets not held at Raymond James may be included
in the calculation of letters of intent only if the shareholder
notifies
his or her financial professional about such
assets |
Edward D. Jones & Co., L.P. (Edward
Jones)
Effective
on or after January 15, 2021, the following information supersedes
prior information with respect to transactions and positions held in
fund shares through an Edward Jones system. Shareholders purchasing
fund shares through an Edward Jones platform or account are
eligible only for the following load waivers (front-end sales charge
waivers and
contingent deferred, or back-end sales charge waivers) and discounts,
which may differ from those disclosed elsewhere in this fund’s prospectus
or Statement of Additional Information (SAI). In all instances, it is the
shareholder’s responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of fund family or other facts qualifying
the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward
Jones if they have questions regarding their eligibility for these discounts
and waivers.
Front-end
Sales Charge Waivers on Class A shares available at Edward
Jones
Sales
charges are waived for the following shareholders and in the following
situations:
|
• |
Associates
of Edward Jones and its affiliates and their family members who
are in the same pricing group (as determined by Edward Jones under
its policies and procedures) as the associate. This waiver will
continue
for the remainder of the associate’s life if the associate retires
from Edward Jones in good-standing and remains in good standing
pursuant to Edward Jones’ policies and
procedures |
|
• |
Shares
purchased in an Edward Jones fee-based
program |
|
• |
Shares
purchased through reinvestment of capital gains distributions and
dividend reinvestment |
|
• |
Shares
purchased from the proceeds of redeemed shares of the same fund
family so long as the following conditions are met: 1) the proceeds
are from the sale of shares within 60 days of the purchase, and
2) the sale and purchase are made in the same share class and the
same account or the purchase is made in an individual retirement
account
with proceeds from liquidations in a non-retirement
account |
|
• |
Shares
exchanged into Class A shares from another share class so long
as the exchange is into the same fund and was initiated at the
discretion
of Edward Jones. Edward Jones is responsible for any remaining
CDSC due to the fund company, if applicable. Any future purchases
are subject to the applicable sales charge as disclosed in the
prospectus |
|
• |
Exchanges
from Class C shares to Class A shares of the same fund, generally,
in the 84th month following the anniversary of the purchase date
or earlier at the discretion of Edward
Jones |
CDSC
Waivers on Class A and Class C shares available at Edward Jones
If the
shareholder purchases shares that are subject to a CDSC and those
shares are redeemed before the CDSC is expired, the shareholder is
responsible to pay the CDSC except in the following conditions:
|
• |
Shares
sold upon the death or disability of the
shareholder |
|
• |
Shares
sold as part of a systematic withdrawal plan (limited to up to
10%
per year of the account value) |
|
• |
Return
of excess contributions from an Individual Retirement Account (IRA) |
|
• |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder
reaches qualified age based on applicable IRS
regulations |
|
• |
Shares
sold to pay Edward Jones fees or costs in such cases where the
transaction
is initiated by Edward Jones |
|
• |
Shares
exchanged at Edward Jones’ discretion in an Edward Jones fee-based
program. In such circumstances, Edward Jones is responsible
for any remaining CDSC due to the fund company, if applicable |
|
• |
Shares
acquired through a right of reinstatement |
|
• |
Shares
redeemed at the discretion of Edward Jones for Minimum Balances,
as described below |
Front-end
Load Discounts Available at Edward Jones; Breakpoints,
Rights of Accumulation & Letter of Intent
|
• |
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds,
as described in this prospectus |
|
• |
Rights
of Accumulation (ROA). The applicable sales charge on a purchase
of Class A shares is determined by taking into account all share
classes (except certain money market funds and any assets held
in
group retirement plans) of the fund family held by the shareholder
or in
an account grouped by Edward Jones with other accounts for the
purpose
of providing certain pricing considerations (pricing groups). If
grouping
assets as a shareholder, this includes all share classes held on
the Edward Jones platform and/or held on another platform. The
inclusion
of eligible fund family assets in the ROA calculation is dependent
on the shareholder notifying Edward Jones of such assets at
the time of calculation. The employer maintaining a SEP IRA plan
and/or
SIMPLE IRA plan may elect to establish or change ROA for the IRA
accounts associated with the plan to a plan-level grouping as opposed
to including all share classes at a shareholder or pricing group
level. ROA is determined by calculating the higher of cost minus
redemptions
or market value (current shares x NAV). Money market funds
are included only if such shares were sold with a sales charge at
the
time of purchase or acquired in exchange for shares purchased with
a sales charge |
|
• |
Letter
of Intent (LOI). Through a LOI, shareholders can receive the sales
charge and breakpoint discounts for purchases shareholders intend
to make over a 13-month period from the date Edward Jones receives
the LOI. The LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month
period to calculate the front-end sales charge and any breakpoint
discounts. Each purchase the shareholder makes during that
13-month period will receive the sales charge and breakpoint discount
that applies to the total amount. The inclusion of eligible fund
family
assets in the LOI calculation is dependent on the shareholder notifying
Edward Jones of such assets at the time of calculation. Purchases
made before the LOI is received by Edward Jones are not adjusted
under the LOI and will not reduce the sales charge previously paid.
Sales charges will be adjusted if LOI is not met. If the employer
maintaining
a SEP IRA plan and/or SIMPLE IRA plan has elected to establish
or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only
be
established by the employer |
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
|
• |
Initial
purchase minimum: $250 |
|
• |
Subsequent
purchase minimum: none |
Minimum
Balances
|
• |
Edward
Jones has the right to redeem at its discretion fund holdings with
a balance of $250 or less. The following are examples of accounts
that are not included in this policy: |
|
• |
A
fee-based account held on an Edward Jones
platform |
|
• |
A 529
account held on an Edward Jones platform |
|
• |
An
account with an active systematic investment plan or
LOI |
Exchanging
Share Classes
|
• |
At
any time it deems necessary, Edward Jones has the authority to
exchange
at NAV a shareholder’s holdings in a fund to Class A shares of
the same fund |
Janney Montgomery Scott LLC
(Janney)
Effective
May 1, 2020, if you purchase fund shares through a Janney brokerage
account, you will be eligible for the following load waivers (front-end
sales charge waivers and contingent deferred sales charge (CDSC), or
back-end sales charge, waivers) and discounts, which may differ from
those disclosed elsewhere in this fund’s prospectus or SAI.
Front-end
sales charge* waivers on Class A shares available at Janney
|
• |
Shares
purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but
not any other fund within the fund
family) |
|
• |
Shares
purchased by employees and registered representatives of Janney
or its affiliates and their family members as designated by Janney |
|
• |
Shares
purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within ninety (90) days
following the redemption, (2) the redemption and purchase occur
in
the same account, and (3) redeemed shares were subject to a front-end
or deferred sales load (i.e., right of
reinstatement) |
|
• |
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension
plans and defined benefit plans). For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs, SAR-SEPs or Keogh plans |
|
• |
Shares
acquired through a right of reinstatement |
|
• |
Class
C shares that are no longer subject to a contingent deferred sales
charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures |
CDSC
waivers on Class A and Class C shares available at Janney
|
• |
Shares
sold upon the death or disability of the
shareholder |
|
• |
Shares
sold as part of a systematic withdrawal plan as described in the
fund’s prospectus |
|
• |
Shares
purchased in connection with a return of excess contributions from
an IRA account |
|
• |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder
reaches qualified age based on applicable IRS
regulations |
|
• |
Shares
sold to pay Janney fees but only if the transaction is initiated
by
Janney |
|
• |
Shares
acquired through a right of reinstatement |
|
• |
Shares
exchanged into the same share class of a different
fund |
Front-end
sales charge* discounts available at Janney: breakpoints,
rights of accumulation, and/or letters of intent
|
• |
Breakpoints
as described in the fund’s prospectus |
|
• |
Rights
of accumulation (ROA), which entitle shareholders to breakpoint
discounts, will be automatically calculated based on the aggregated
holding of fund family assets held by accounts within the purchaser’s
household at Janney. Eligible fund family assets not held at
Janney may be included in the ROA calculation only if the shareholder
notifies his or her financial professional about such
assets |
|
• |
Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13-month time period.
Eligible fund family assets not held at Janney may be included
in
the calculation of letters of intent only if the shareholder notifies his
or
her financial professional about such
assets |
*Also
referred to as an “initial sales charge.”
Robert W. Baird & Co.
(Baird)
Effective
June 15, 2020, shareholders purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge
waivers (front-end sales charge waivers and contingent deferred sales
charge (CDSC) waivers) and discounts, which may differ from those
disclosed elsewhere in this prospectus or the SAI.
Front-End
Sales Charge Waivers on Class A shares Available at Baird
|
• |
Shares
purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same
fund |
|
• |
Shares
purchased by employees and registered representatives of Baird
or its affiliates and their family members as designated by
Baird |
|
• |
Shares
purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within 90 days following
the redemption, (2) the redemption and purchase occur in the
same account, and (3) redeemed shares were subject to a front-end
or deferred sales charge (known as rights of
reinstatement) |
|
• |
Class
C shares will be converted at net asset value to Class A shares of
the
same fund if the shares are no longer subject to CDSC and the conversion
is in line with the policies and procedures of
Baird |
|
• |
Employer-sponsored
retirement plans or charitable accounts in a transactional
brokerage account at Baird, including 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, profit sharing and money purchase
pension plans and defined benefit plans. For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs |
CDSC
Waivers on Class A and Class C shares Available at Baird
|
• |
Shares
sold due to death or disability of the
shareholder |
|
• |
Shares
sold as part of a systematic withdrawal plan as described in the
fund’s prospectus |
|
• |
Shares
bought due to returns of excess contributions from an IRA Account |
|
• |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus |
|
• |
Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird |
|
• |
Shares
acquired through a right of reinstatement |
Front-End
Sales Charge Discounts Available at Baird: Breakpoints
and/or Rights of Accumulations
|
• |
Breakpoints
as described in this prospectus |
|
• |
Rights
of accumulations which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holdings
of fund family assets held by accounts within the purchaser’s household
at Baird. Eligible fund family assets not held at Baird may be
included in the rights of accumulations calculation only if the
shareholder
notifies his or her financial advisor about such
assets |
|
• |
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated
purchases within the fund family through Baird, over a 13-month
period of time |
Stifel, Nicolaus & Company, Incorporated
(Stifel)
Effective
July 1, 2020, shareholders purchasing fund shares through a Stifel
platform or account or who own shares for which Stifel or an affiliate
is the broker-dealer of record are eligible for the following additional
sales charge waiver.
Front-end
Sales Load Waiver on Class A Shares
|
• |
Class
C shares that have been held for more than seven (7) years converted
to Class A shares of the same fund pursuant to Stifel’s policies
and procedures. |
All other
sales charge waivers and reductions described elsewhere in the fund’s
prospectus or SAI still apply.
For more
information
The
following documents
are available that offer further information on the fund:
Annual/semiannual
reports to shareholders
Additional
information about the fund’s investments is available in the fund’s annual and
semiannual reports to shareholders. In the fund’s annual report, you
will find a
discussion of the market conditions and investment strategies that significantly
affected the fund’s performance during its last fiscal year.
As of
January 1, 2021, paper copies of the fund’s shareholder reports are no longer
sent by mail. Instead, the reports are made available on jhinvestments.com,
and you will be notified and provided with a link each time a report is posted
to the website. You may request to receive paper reports from the fund or
from your financial intermediary, free of charge, at any time. You may also
request to receive documents through eDelivery.
Statement
of Additional Information (SAI)
The SAI
contains more detailed information on all aspects of the fund and includes a
summary of the fund’s policy regarding disclosure of its portfolio holdings,
as well as legal and regulatory matters. A current SAI has been filed with the SEC
and is incorporated by reference into (and is legally a part of) this
prospectus.
To
obtain a free copy of these documents or request other
information
There are
several ways you can get a current annual/semiannual report, prospectus, or SAI
from John Hancock, request other information, or make inquiries:
Online:
jhinvestments.com
By
mail:
John
Hancock Signature Services, Inc.
P.O. Box
219909
Kansas
City, MO 64121-9909
By
EASI-Line:
800-338-8080 for Class A and Class C shares
By
phone:
800-225-5291 for Class A and Class C shares; 888-972-8696 for Class I, Class R2,
Class R4, and Class R6 shares
By
TTY:
888-999-4721 for Class
A, Class C, Class I, and Class R6 shares
You can
also view or obtain copies of these documents through the SEC:
Online:
sec.gov
|
|
|
|
©
2022 John Hancock Investment Management Distributors LLC, Member FINRA,
SIPC
200
Berkeley Street Boston, MA 02116
800-225-5291,
jhinvestments.com
Manulife,
Manulife Investment Management, Stylized M Design, and Manulife Investment
Management & Stylized M Design are trademarks of The Manufacturers
Life Insurance
Company and are used by its affiliates under license. |
|
|
|
SEC
file number: 811-21777
3930PN
8/1/22 |
