Form N-CSR JOHN HANCOCK CURRENT For: Mar 31
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A message to shareholders
John Hancock
Money Market Fund
Table of contents
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 1 |
Your fund at a glance
INVESTMENT OBJECTIVE
The fund seeks the maximum current
income that is consistent with maintaining liquidity and preserving capital.
MATURITY COMPOSITION AS OF
3/31/2022 (% of total investments)
| 2 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
PERFORMANCE HIGHLIGHTS OVER THE
LAST TWELVE MONTHS
Inflation rose
considerably during the period
Inflation surged
to levels not seen in more than 40 years as the combination of fiscal spending and monetary stimulus fueled increased consumer and business demand, while supplies remained restricted due to the after-effects of
COVID-19 lockdowns.
The fund
maintained a steady approach
The fund’s
interest-rate sensitivity was reduced as the period progressed, particularly as the Fed signaled a shift to tighter monetary policy.
PORTFOLIO COMPOSITION AS OF
3/31/2022 (% of total investments)
Notes about risk
The fund is subject to various risks
as described in the fund’s prospectus. Political tensions and armed conflicts, including the Russian invasion of Ukraine, and any resulting economic sanctions on entities and/or individuals of a particular
country could lead such a country into an economic recession. The COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause
substantial market volatility, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. The fund may experience periods of
heavy redemptions that could cause it to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets, and that could affect the fund’s
ability to maintain a $1.00 share price.For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 3 |
Management’s discussion of fund
performance
Can you describe some of the key
events during the 12 months ended on March 31, 2022, as well as your portfolio strategy in this time?
Money markets continued to offer
investors very low yields, but the investment backdrop evolved considerably as the period progressed. For most of 2021, the U.S. Federal Reserve (Fed) kept short-term interest rates near zero and maintained the
bond-buying program known as quantitative easing (QE). Although inflation began to accelerate in the first half of the year, the Fed held fast with its stimulative policy on the belief that the price pressures were
transitory and largely caused by short-term bottlenecks in the supply chain, largely due to COVID-19 lockdowns.
The Fed changed its tone in late
2021 given that inflation, rather than waning, in fact continued to rise. In November 2021, the central bank announced that it planned to taper its QE program at a pace of $15 billion per month and was likely to begin
raising interest rates in the coming year. The Fed then increased the pace of tapering to $30 billion per month after its December meeting as inflation reached its highest level in nearly four decades, with consumer
price inflation increasing to 6.8% on a year-over-year basis in November. The Fed ended the QE program in early March 2022, and it followed up this move by enacting a quarter-point interest-rate increase later in the
month. This marked the first time the fed funds rate had been above the 0.00% to 0.25% range in approximately two years, as well as the first rate hike since December 2018.
Inflation continued to rise in
early 2022, with the Consumer Price Index climbing 7.5% in January and 7.9% in February. The outlook for inflation grew even more challenging following the conflict between Russia and Ukraine. The resulting sanctions
restricted Russia’s global trade activity, which reduced the supply of oil and key basic materials while further complicating the issues with world supply chains. Inflation expectations rose even further in
response, causing the market to begin factoring in as many as seven to nine more quarter-point increases before the end of 2022. Hawkish commentary from Fed officials underscored the central bank’s shift to a
policy focused more on fighting inflation than promoting economic growth and full employment. As part of this process, the Fed indicated that it may begin to enact quantitative tightening (the active reduction of its
balance sheet).
These developments, while a
headwind to most segments of the financial markets, represented positive news for money market investors given that rates appear set
| 4 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
to move off of near-zero levels for the first time
in several years. For our part, we actively shifted the portfolio’s weighted average maturity and duration (a measure of interest-rate sensitivity) to capture opportunities that presented themselves in this
rapidly changing environment. The fund was positioned for a backdrop of rising short-term interest rates at the close of the period. As always, we continued to emphasize liquidity and diversification.
MANAGED BY
The views expressed in
this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings
discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current
and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 5 |
Your expenses
These examples are intended to help
you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund,
you incur two types of costs:
■Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
■Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing
operating expenses here.
Actual expenses/actual returns
The first line of each share
class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of
$1,000.00 on October 1, 2021, with the same investment held until March 31, 2022.
Together with the value of your
account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at March 31, 2022, by $1,000.00, then multiply it by the “expenses
paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison
purposes
The second line of each share
class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and
hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on
October 1, 2021, with the same investment held until March 31, 2022. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that
these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| 6 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
Remember, these examples do not
include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See
the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE
CHART
| Account value on 10-1-2021 | Ending value on 3-31-2022 | Expenses paid during period ended 3-31-20221 | Annualized expense ratio | ||
| Class A | Actual expenses/actual returns | $1,000.00 | $1,000.20 | $0.45 | 0.09% |
| Hypothetical example | 1,000.00 | 1,024.50 | 0.45 | 0.09% | |
| Class C | Actual expenses/actual returns | 1,000.00 | 1,000.20 | 0.50 | 0.10% |
| Hypothetical example | 1,000.00 | 1,024.40 | 0.50 | 0.10% |
| 1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 7 |
Fund’s investments
AS OF
3-31-22
| Maturity date | Yield (%) | Par value^ | Value | ||
| U.S. Government Agency 85.3% | $925,096,605 | ||||
| (Cost $925,096,605) | |||||
| Federal Agricultural Mortgage Corp. (SOFR + 0.010%) (A) | 08-18-22 | 0.284 | 8,472,000 | 8,472,000 | |
| Federal Agricultural Mortgage Corp. (SOFR + 0.030%) (A) | 04-04-23 | 0.310 | 4,933,000 | 4,933,000 | |
| Federal Agricultural Mortgage Corp. (SOFR + 0.050%) (A) | 03-03-23 | 0.324 | 3,000,000 | 3,000,000 | |
| Federal Agricultural Mortgage Corp. (SOFR + 0.040%) (A) | 03-17-23 to 03-29-23 | 0.314 | 19,585,000 | 19,585,000 | |
| Federal Agricultural Mortgage Corp. (SOFR + 0.015%) (A) | 09-30-22 to 11-04-22 | 0.289 | 14,497,000 | 14,497,000 | |
| Federal Agricultural Mortgage Corp. (SOFR + 0.020%) (A) | 12-02-22 to 03-01-23 | 0.294 | 36,780,000 | 36,780,000 | |
| Federal Agricultural Mortgage Corp. | 04-29-22 to 12-15-22 | 0.075 to 1.059 | 42,512,000 | 42,446,487 | |
| Federal Farm Credit Bank (SOFR + 0.035%) (A) | 04-21-23 | 0.304 | 1,000,000 | 1,000,053 | |
| Federal Farm Credit Bank (SOFR + 0.060%) (A) | 10-21-22 | 0.310 | 10,909,000 | 10,910,498 | |
| Federal Farm Credit Bank (U.S. Federal Funds Effective Rate + 0.360%) (A) | 12-12-22 | 0.325 | 9,802,000 | 9,827,612 | |
| Federal Farm Credit Bank (U.S. Federal Funds Effective Rate - 0.015%) (A) | 05-15-23 | 0.330 | 4,000,000 | 3,999,544 | |
| Federal Farm Credit Bank (U.S. Federal Funds Effective Rate - 0.005%) (A) | 06-22-23 | 0.330 | 3,077,000 | 3,077,000 | |
| Federal Farm Credit Bank (SOFR + 0.135%) (A) | 11-06-23 | 0.334 | 700,000 | 700,852 | |
| Federal Farm Credit Bank (Prime rate - 3.170%) (A) | 01-26-23 | 0.342 | 8,692,000 | 8,691,459 | |
| Federal Farm Credit Bank (SOFR + 0.075%) (A) | 11-03-22 | 0.350 | 2,638,000 | 2,638,000 | |
| Federal Farm Credit Bank (Prime rate - 3.155%) (A) | 09-08-23 | 0.350 | 4,500,000 | 4,500,000 | |
| Federal Farm Credit Bank (SOFR + 0.080%) (A) | 10-14-22 | 0.355 | 2,138,000 | 2,138,000 | |
| Federal Farm Credit Bank (Prime rate - 3.145%) (A) | 03-15-23 | 0.360 | 2,989,000 | 2,989,000 | |
| Federal Farm Credit Bank (SOFR + 0.090%) (A) | 09-23-22 | 0.365 | 2,685,000 | 2,685,000 | |
| Federal Farm Credit Bank (SOFR + 0.320%) (A) | 06-09-23 | 0.375 | 81,000 | 81,214 | |
| Federal Farm Credit Bank (Prime rate - 3.095%) (A) | 04-20-22 | 0.411 | 6,681,000 | 6,681,000 | |
| Federal Farm Credit Bank (SOFR + 0.145%) (A) | 07-28-22 | 0.421 | 1,330,000 | 1,330,000 | |
| 8 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| Maturity date | Yield (%) | Par value^ | Value | ||
| Federal Farm Credit Bank (3 month USBMMY + 0.025%) (A) | 06-15-23 | 0.518 | 4,723,000 | $4,722,711 | |
| Federal Farm Credit Bank (3 month USBMMY + 0.270%) (A) | 05-16-22 | 0.541 | 4,509,000 | 4,510,220 | |
| Federal Farm Credit Bank (SOFR + 0.015%) (A) | 11-28-22 to 01-09-23 | 0.289 to 0.299 | 10,785,000 | 10,784,922 | |
| Federal Farm Credit Bank (SOFR + 0.030%) (A) | 04-06-23 to 06-14-23 | 0.304 | 9,697,000 | 9,697,000 | |
| Federal Farm Credit Bank (3 month USBMMY + 0.290%) (A) | 04-11-22 | 0.628 | 8,558,000 | 8,558,359 | |
| Federal Farm Credit Bank (3 month USBMMY + 0.023%) (A) | 07-17-23 | 0.637 | 5,000,000 | 5,000,000 | |
| Federal Farm Credit Bank (SOFR + 0.040%) (A) | 08-22-22 to 02-09-24 | 0.314 to 0.325 | 6,738,000 | 6,737,798 | |
| Federal Farm Credit Bank (SOFR + 0.380%) (A) | 04-22-22 | 0.659 | 2,624,000 | 2,624,000 | |
| Federal Farm Credit Bank (Prime rate - 3.180%) (A) | 07-27-22 to 10-19-22 | 0.330 | 10,401,000 | 10,400,779 | |
| Federal Farm Credit Bank (3 month USBMMY + 0.055%) (A) | 01-31-23 | 0.670 | 5,738,000 | 5,738,000 | |
| Federal Farm Credit Bank (Prime rate - 3.160%) (A) | 05-18-23 to 07-26-23 | 0.345 to 0.375 | 5,031,000 | 5,030,197 | |
| Federal Farm Credit Bank | 04-06-22 to 01-25-23 | 0.041 to 1.126 | 171,271,000 | 171,253,069 | |
| Federal Home Loan Bank (SOFR + 0.090%) (A) | 08-12-22 | 0.365 | 5,360,000 | 5,360,000 | |
| Federal Home Loan Bank (SOFR) (A) | 05-23-22 to 06-01-22 | 0.274 | 20,840,000 | 20,840,000 | |
| Federal Home Loan Bank (SOFR + 0.060%) (A) | 11-23-22 to 12-16-22 | 0.335 | 16,630,000 | 16,630,000 | |
| Federal Home Loan Bank (SOFR + 0.010%) (A) | 07-26-22 to 10-17-22 | 0.279 to 0.284 | 26,335,000 | 26,335,212 | |
| Federal Home Loan Bank (SOFR + 0.005%) (A) | 06-03-22 to 09-16-22 | 0.276 to 0.279 | 42,850,000 | 42,850,073 | |
| Federal Home Loan Bank | 04-01-22 to 12-02-22 | 0.051 to 0.791 | 321,487,000 | 321,505,476 | |
| Federal Home Loan Mortgage Corp. | 04-21-22 to 07-25-22 | 0.061 to 0.254 | 17,353,000 | 17,352,954 | |
| Federal National Mortgage Association (SOFR + 0.270%) (A) | 05-04-22 | 0.274 | 1,043,000 | 1,043,258 | |
| Federal National Mortgage Association (SOFR + 0.180%) (A) | 07-08-22 | 0.284 | 2,150,000 | 2,150,995 | |
| Federal National Mortgage Association (SOFR + 0.350%) (A) | 04-07-22 | 0.457 | 1,589,000 | 1,589,045 | |
| Federal National Mortgage Association (SOFR + 0.190%) (A) | 05-19-22 | 0.466 | 5,254,000 | 5,254,000 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 9 |
| Maturity date | Yield (%) | Par value^ | Value | ||
| Federal National Mortgage Association (SOFR + 0.200%) (A) | 06-15-22 | 0.477 | 4,000,000 | $4,000,000 | |
| Federal National Mortgage Association | 04-05-22 to 09-29-22 | 0.049 to 0.254 | 9,615,000 | 9,629,850 | |
| Tennessee Valley Authority | 04-13-22 | 0.216 | 14,537,000 | 14,535,968 | |
| U.S. Government 13.7% | $148,214,249 | ||||
| (Cost $148,214,249) | |||||
| U.S. Cash Management Bill | 05-31-22 | 0.280 | 6,999,600 | 6,996,380 | |
| U.S. Treasury Bill | 04-07-22 to 07-28-22 | 0.088 to 0.598 | 81,509,500 | 81,453,697 | |
| U.S. Treasury Note (3 month USBMMY + 0.055%) (A) | 07-31-22 | 0.645 | 7,236,700 | 7,237,308 | |
| U.S. Treasury Note | 04-30-22 to 11-30-22 | 0.086 to 0.333 | 52,461,000 | 52,526,864 | |
| Par value^ | Value | ||||
| Repurchase agreement 3.0% | $33,000,000 | ||||
| (Cost $33,000,000) | |||||
| Barclays Tri-Party Repurchase Agreement dated 3-31-22 at 0.300% to be repurchased at $33,000,275 on 4-1-22, collateralized by $26,173,721 U.S. Treasury Inflation Indexed Bonds, 1.375% due 2-15-44 (valued at $33,660,434) | 33,000,000 | 33,000,000 | |||
| Total investments (Cost $1,106,310,854) 102.0% | $1,106,310,854 | ||||
| Other assets and liabilities, net (2.0)% | (21,693,049) | ||||
| Total net assets 100.0% | $1,084,617,805 | ||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. Maturity date represents the final legal maturity date on the security. | |
| ^All par values are denominated in U.S. dollars unless otherwise indicated. | |
| Security Abbreviations and Legend | |
| SOFR | Secured Overnight Financing Rate |
| USBMMY | U.S. Treasury Bill Money Market Yield |
| (A) | Variable rate obligation. |
At 3-31-22, the aggregate cost of
investments for federal income tax purposes was $1,106,310,854.
| 10 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND
LIABILITIES 3-31-22
| Assets | |
| Unaffiliated investments, at value (Cost $1,106,310,854) | $1,106,310,854 |
| Cash | 24,173 |
| Interest receivable | 547,841 |
| Receivable for fund shares sold | 3,438,561 |
| Receivable from affiliates | 16,757 |
| Other assets | 91,520 |
| Total assets | 1,110,429,706 |
| Liabilities | |
| Payable for investments purchased | 22,992,999 |
| Payable for fund shares repurchased | 2,463,670 |
| Payable to affiliates | |
| Accounting and legal services fees | 49,536 |
| Transfer agent fees | 101,405 |
| Distribution and service fees | 11,821 |
| Trustees’ fees | 2,085 |
| Other liabilities and accrued expenses | 190,385 |
| Total liabilities | 25,811,901 |
| Net assets | $1,084,617,805 |
| Net assets consist of | |
| Paid-in capital | $1,084,617,805 |
| Net assets | $1,084,617,805 |
| Net asset value per share | |
| Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
| Class A ($1,072,041,653 ÷ 1,072,043,875 shares) | $1.00 |
| Class C ($12,576,152 ÷ 12,575,958 shares)1 | $1.00 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Money Market Fund | 11 |
STATEMENT OF OPERATIONS For the year ended 3-31-22
| Investment income | |
| Interest | $742,643 |
| Expenses | |
| Investment management fees | 3,523,703 |
| Distribution and service fees | 2,555,958 |
| Accounting and legal services fees | 137,868 |
| Transfer agent fees | 1,129,150 |
| Trustees’ fees | 15,459 |
| Custodian fees | 126,786 |
| State registration fees | 116,993 |
| Printing and postage | 123,666 |
| Professional fees | 55,593 |
| Other | 52,638 |
| Total expenses | 7,837,814 |
| Less expense reductions | (7,127,249) |
| Net expenses | 710,565 |
| Net investment income | 32,078 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments | 139,451 |
| 139,451 | |
| Increase in net assets from operations | $171,529 |
| 12 | JOHN HANCOCK Money Market Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENTS OF CHANGES IN NET
ASSETS
| Year ended 3-31-22 | Year ended 3-31-21 | |
| Increase (decrease) in net assets | ||
| From operations | ||
| Net investment income | $32,078 | $101,166 |
| Net realized gain | 139,451 | 2,319 |
| Increase in net assets resulting from operations | 171,529 | 103,485 |
| Distributions to shareholders | ||
| From earnings | ||
| Class A | (180,605) | (93,963) |
| Class B | — | (38) |
| Class C | (1,784) | (1,423) |
| Total distributions | (182,389) | (95,424) |
| From fund share transactions | 116,177,037 | 118,121,205 |
| Total increase | 116,166,177 | 118,129,266 |
| Net assets | ||
| Beginning of year | 968,451,628 | 850,322,362 |
| End of year | $1,084,617,805 | $968,451,628 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Money Market Fund | 13 |
Financial highlights
| CLASS A SHARES Period ended | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Net investment income1 | —2 | —2 | 0.014 | 0.016 | 0.006 |
| Net realized and unrealized gain (loss) on investments | —2 | —2 | —2 | —2 | —2 |
| Total from investment operations | —2 | —2 | 0.014 | 0.016 | 0.006 |
| Less distributions | |||||
| From net investment income | —2 | —2 | (0.014) | (0.016) | (0.006) |
| Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total return (%)3,4 | 0.025 | 0.015 | 1.45 | 1.56 | 0.595 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $1,072 | $956 | $835 | $613 | $500 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.78 | 0.80 | 0.82 | 0.83 | 0.81 |
| Expenses including reductions | 0.075 | 0.205 | 0.56 | 0.57 | 0.555 |
| Net investment income | —5,6 | 0.015 | 1.42 | 1.57 | 0.575 |
| 1 | Based on average daily shares outstanding. |
| 2 | Less than $0.0005 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 | Includes the impact of waivers and/or reimbursements in order to avoid a negative yield. See Note 4. |
| 6 | Less than 0.005%. |
| 14 | JOHN HANCOCK Money Market Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS C SHARES Period ended | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Net investment income1 | —2 | —2 | 0.014 | 0.016 | 0.006 |
| Net realized and unrealized gain (loss) on investments | —2 | —2 | —2 | —2 | —2 |
| Total from investment operations | —2 | —2 | 0.014 | 0.016 | 0.006 |
| Less distributions | |||||
| From net investment income | —2 | —2 | (0.014) | (0.016) | (0.006) |
| Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total return (%)3,4 | 0.025 | 0.015 | 1.45 | 1.56 | 0.605 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $13 | $12 | $15 | $12 | $15 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.53 | 1.55 | 1.57 | 1.58 | 1.56 |
| Expenses including reductions | 0.075 | 0.205 | 0.56 | 0.57 | 0.555 |
| Net investment income | —5,6 | 0.015 | 1.45 | 1.55 | 0.555 |
| 1 | Based on average daily shares outstanding. |
| 2 | Less than $0.0005 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 | Includes the impact of waivers and/or reimbursements in order to avoid a negative yield. See Note 4. |
| 6 | Less than 0.005%. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Money Market Fund | 15 |
Notes to financial statements
Note 1—Organization
John Hancock Money Market Fund (the
fund) is a series of John Hancock Current Interest (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended
(the 1940 Act). The investment objective of the fund is to seek the maximum current income that is consistent with maintaining liquidity and preserving capital. The fund intends to maintain a stable $1.00 share price.
Although the fund seeks to maintain a stable $1.00 share price, the value of the fund’s shares could go down in price, meaning that you can lose money by investing in the fund.
The fund may offer multiple classes
of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A shares are offered to all investors. Class C shares are closed to new investors. Class C shares convert to
Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and
transfer agent fees for each class may differ.
Note 2—Significant accounting policies
The financial statements have been
prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial
statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring
after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting
policies of the fund:
Security valuation. Securities in the fund’s portfolio are valued at amortized cost, in accordance with Rule 2a-7 under the 1940 Act, which approximates market value. The amortized cost method involves
valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the security to the
fund. The fund seeks to maintain a constant per share of $1.00, but there can be no assurance that it will be able to do so.
The fund uses a three-tier hierarchy
to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities,
including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment
speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities
valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in
determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the
risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of March 31, 2022, all
investments are categorized as Level 2 under the hierarchy described above.
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund’s custodian,
or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis
to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in
the Fund’s investments as part of the caption related to the repurchase agreement.
| 16 | JOHN HANCOCK Money Market Fund | ANNUAL REPORT |
Repurchase agreements are typically
governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions
traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default
by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay claims resulting from close-out
of the transactions.
Security transactions and related
investment income. Investment security transactions are recorded as of the date of purchase, sale or maturity. Interest income is accrued as earned. Interest income includes coupon interest and
amortization/accretion of premiums/discounts on debt securities. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities.
Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related
costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent
permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion
unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million,
subject to asset coverage and other limitations as specified in the agreement. Prior to June 24, 2021, the fund could borrow up to an aggregate commitment amount of $850 million. A commitment fee payable at the end of
each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other
expenses on the Statement of operations. For the year ended March 31, 2022, the fund had no borrowings under the line of credit. Commitment fees for the year ended March 31, 2022 were $7,935.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a
specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued
in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class.
Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense
rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income
tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of March 31, 2022, the fund had
no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period
of three years.
Distribution of income and
gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares dividends from net investment income daily
and pays monthly, as long as class income exceeds class expense on each day. Capital gain distributions, if any, are typically distributed annually.
| ANNUAL REPORT | JOHN HANCOCK Money Market Fund | 17 |
The tax character of distributions
for the years ended March 31, 2022 and 2021 was as follows:
| March 31, 2022 | March 31, 2021 | |
| Ordinary income | $182,389 | $95,424 |
Distributions paid by the fund with
respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of March 31,
2022, there were no distributable earnings on a tax basis.
Such distributions and distributable
earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s
financial statements as a return of capital.
Capital accounts within the
financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent
period. The fund had no material book-tax differences at March 31, 2022.
Note 3—Guarantees and indemnifications
Under the Trust’s
organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of
business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims
that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4—Fees and transactions with affiliates
John Hancock Investment Management
LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor
and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a)
0.500% of the first $500 million of the fund’s aggregate net assets; (b) 0.425% of the next $250 million of the fund’s aggregate net assets; (c) 0.375% of the next $250 million of the fund’s
aggregate net assets; (d) 0.350% of the next $500 million of the fund’s aggregate net assets; (e) 0.325% of the next $500 million of the fund’s aggregate net assets; (f) 0.300% of the next $500 million of
the fund’s aggregate net assets; and (g) 0.275% of the fund’s aggregate net assets in excess of $2.5 billion. Aggregate net assets include the net assets of the fund and Money Market Trust, a series of
John Hancock Variable Insurance Trust. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the
Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed
to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate
net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the
year ended March 31, 2022, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2023, 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.
| 18 | JOHN HANCOCK Money Market Fund | ANNUAL REPORT |
The Advisor and its affiliates have
voluntarily agreed to waive a portion of their fees (including, but not limited to, Rule 12b-1 fees) and/or reimburse certain expenses to the extent necessary to assist the fund in attempting to avoid a negative
yield. There is no guarantee that the fund will achieve a positive yield or avoid a negative yield. These expense waivers and/or reimbursements may be amended or terminated at any time by the Advisor. These voluntary
waivers are in addition to existing contractual expense limitations.
For the year ended March 31, 2022,
the expense reductions described above amounted to the following:
| Class | Advisor expense reduction |
| Class A | $4,521,115 |
| Class C | 50,176 |
| Total | $4,571,291 |
Expenses waived or reimbursed in the
current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees,
including the impact of the waivers and reimbursements as described above, incurred for the year ended March 31, 2022, were equivalent to a net annual effective rate of 0.00% of the fund’s average daily net
assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping
services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative
net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended March 31, 2022, amounted to an annual rate of 0.01% of the fund’s average daily net
assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940
Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed
as an annual percentage of average daily net assets for each class of the fund’s shares:
| Class | Rule 12b-1 Fee |
| Class A | 0.25% |
| Class C | 1.00% |
The Distributor has contractually
agreed to waive Rule 12b-1 fees on Class A and Class C shares to the extent necessary to achieve aggregate fees paid to the Distributor of 0.00%. This agreement expires on July 31, 2022, 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.
The total amounts waived by the
Distributor were $2,447,037 and $108,921, for Class A and Class C shares, respectively, for the year ended March 31, 2022.
Sales charges. Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are
applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. 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. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in
connection with the sale of these shares. During the year ended March 31, 2022, CDSCs received by the Distributor amounted to $2,327 and $467 for Class A and Class C shares, respectively.
| ANNUAL REPORT | JOHN HANCOCK Money Market Fund | 19 |
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent
fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to
third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in
connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of
Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds
and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended March 31, 2022 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $2,447,037 | $1,116,707 |
| Class C | 108,921 | 12,443 |
| Total | $2,555,958 | $1,129,150 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net
assets relative to other funds within the John Hancock group of funds complex.
Note 5—Fund share transactions
Transactions in fund shares for the
years ended March 31, 2022 and 2021 were as follows:
| Year Ended 3-31-22 | Year Ended 3-31-21 | |||
| Shares | Amount | Shares | Amount | |
| Class A shares | ||||
| Sold | 621,498,083 | $621,498,085 | 625,804,105 | $625,804,107 |
| Distributions reinvested | 176,026 | 176,026 | 90,548 | 90,548 |
| Repurchased | (505,989,908) | (505,989,909) | (504,488,091) | (504,488,092) |
| Net increase | 115,684,201 | $115,684,202 | 121,406,562 | $121,406,563 |
| Class B shares | ||||
| Sold | — | — | 73,199 | $73,199 |
| Distributions reinvested | — | — | 26 | 26 |
| Repurchased | — | — | (938,489) | (938,440) |
| Net decrease | — | — | (865,264) | $(865,215) |
| Class C shares | ||||
| Sold | 10,089,245 | $10,089,244 | 10,939,836 | $10,939,836 |
| Distributions reinvested | 1,754 | 1,754 | 1,363 | 1,363 |
| Repurchased | (9,598,163) | (9,598,163) | (13,361,342) | (13,361,342) |
| Net increase (decrease) | 492,836 | $492,835 | (2,420,143) | $(2,420,143) |
| Total net increase | 116,177,037 | $116,177,037 | 118,121,155 | $118,121,205 |
| 20 | JOHN HANCOCK Money Market Fund | ANNUAL REPORT |
On June 25, 2020, the Board of
Trustees approved redesignations of certain share classes. As a result of the redesignations, Class B was terminated, and shareholders in this class became shareholders of Class A, with the same or lower total net
expenses. The following amount is included in the amount repurchased of the terminated class and the amount sold of the redesignated class.
| Redesignation | Effective date | Amount | |||||
| Class B shares as Class A shares | October 14, 2020 | $500,581 |
Note 6—LIBOR discontinuation risk
LIBOR (London Interbank Offered
Rate) is a measure of the average interest rate at which major global banks can borrow from one another. Following allegations of rate manipulation and concerns regarding its thin liquidity, in July 2017, the U.K.
Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR. As market participants transition away from LIBOR, LIBOR’s
usefulness may deteriorate. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR’s deterioration may adversely affect
the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate.
The ICE Benchmark Administration
Limited, the administrator of LIBOR, ceased publishing most LIBOR maturities, including some US LIBOR maturities, on December 31, 2021, and is expected to cease publishing the remaining and most liquid US LIBOR
maturities on June 30, 2023. It is expected that market participants will transition to the use of alternative reference or benchmark rates prior to the applicable LIBOR publication cessation date. However, although
regulators have encouraged the development and adoption of alternative rates such as the Secured Overnight Financing Rate ("SOFR"), the future utilization of LIBOR or of any particular replacement rate remains
uncertain.
The impact on the transition away
from LIBOR referenced financial instruments remains uncertain. It is expected that market participants will amend such financial instruments to include fallback provisions and other measures that contemplate the
discontinuation of LIBOR. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback
provisions. There are obstacles to converting certain longer term securities to a new benchmark or benchmarks and the effectiveness of one versus multiple alternative reference rates has not been determined. Certain
proposed replacement rates, such as SOFR, are materially different from LIBOR, and will require changes to the applicable spreads. Furthermore, the risks associated with the conversion from LIBOR may be exacerbated if
an orderly transition is not completed in a timely manner.
Note 7—Coronavirus (COVID-19) pandemic
The COVID-19 disease has resulted in
significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, which may lead to less liquidity in certain instruments, industries,
sectors or the markets generally, and may ultimately affect fund performance.
Note 8—New accounting pronouncement
In March 2020, the Financial
Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of
modifications due to the planned discontinuation of the LIBOR and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related
contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management expects that the adoption of the guidance will not have a material impact to the financial statements.
| ANNUAL REPORT | JOHN HANCOCK Money Market Fund | 21 |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Current Interest and Shareholders of John Hancock Money Market Fund
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities, including the fund’s investments, of John Hancock Money Market Fund (one of the funds constituting John Hancock Current Interest, referred to hereafter as the "Fund") as of
March 31, 2022, the related statement of operations for the year ended March 31, 2022, the statements of changes in net assets for each of the two years in the period ended March 31, 2022, including the related notes,
and the financial highlights for each of the five years in the period ended March 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly,
in all material respects, the financial position of the Fund as of March 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended
March 31, 2022 and the financial highlights for each of the five years in the period ended March 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2022 by correspondence with the custodian and brokers; when replies were not received from
brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 9, 2022
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| 22 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
Tax information
(Unaudited)
For federal income tax purposes, the
following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended March 31, 2022.
The fund reports the maximum amount
allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount
allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount
allowable as Section 163(j) Interest Dividends.
The fund reports the maximum amount
allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed
a 2022 Form 1099-DIV in early 2023. This will reflect the tax character of all distributions paid in calendar year 2022.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 23 |
STATEMENT REGARDING LIQUIDITY
RISK MANAGEMENT
Operation of the Liquidity Risk
Management Program
This section describes operation and
effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of
each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock
Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Money Market Fund, subject to the oversight of the Board. In order to
provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund’s subadvisor, Manulife
Investment Management (US) LLC (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of
the Advisor and the Board.
The Committee receives monthly
reports and holds quarterly meetings to: (1) review the day-to-day operations of the LRMP; (2) monitor current market and liquidity conditions; (3) review and approve month-end liquidity classifications; (4) monitor
illiquid investment levels against the 15% limit on illiquid investments and established Highly Liquid Investment Minimums (HLIMs), if any; (5) review quarterly testing and determinations, as applicable; (6) review
redemption-in-kind activities; and (7) review other LRMP related material. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is
subject to the requirements of the Liquidity Rule and is a part of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors
as issues and trends are identified, including potential liquidity issues. The Committee also monitors global events, such as the ongoing COVID-19 Coronavirus pandemic and amendments to the Office of Foreign Assets
Control sanctioned company lists, that could impact the markets and liquidity of portfolio investments and their classifications.
The Committee provided the Board at
a meeting held by videoconference on March 22-24, 2022 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any
material changes to the LRMP. The report, which covered the period January 1, 2021 through December 31, 2021, included an assessment of important aspects of the LRMP including, but not limited to: (1) Security-level
liquidity classifications; (2) Fund-level liquidity risk assessment; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) HLIM determination; (5) Compliance with the 15% limit on illiquid investments; (6)
Operation of the Fund’s Redemption-In-Kind Procedures; and (7) Review of liquidity management facilities.
Additionally, the report included a
discussion of notable changes and enhancements to the LRMP implemented during 2021 and key initiatives for 2022.
The report also covered material
liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part,
that during the period covered by the report:
| • | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
| • | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
| • | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
| 24 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
| • | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
| • | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
Adequacy and Effectiveness
Based on the review and assessment
conducted by the Committee, the Committee has determined that the LRMP has been implemented, and is operating in a manner that is adequate and effective at assessing and managing the liquidity risk of the Fund.
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 25 |
Trustees and Officers
This chart
provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the
Trustees.
| Independent Trustees | ||
| Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
| Hassell H. McClellan, Born: 1945 | 2012 | 191 |
| Trustee and Chairperson of the Board | ||
| Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
| James R. Boyle, Born: 1959 | 2015 | 191 |
| Trustee | ||
| Foresters Financial, Chief Executive Officer (since 2018) and board member (since 2017). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
| Peter S. Burgess,2 Born: 1942 | 2012 | 191 |
| Trustee | ||
| Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
| William H. Cunningham,2 Born: 1944 | 1986 | 191 |
| Trustee | ||
| Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
| Grace K. Fey, Born: 1946 | 2012 | 191 |
| Trustee | ||
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
| Deborah C. Jackson, Born: 1952 | 2008 | 191 |
| Trustee | ||
| President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996–2009); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
| 26 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
| Independent Trustees (continued) | ||
| Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
| Steven R. Pruchansky, Born: 1944 | 1994 | 191 |
| Trustee and Vice Chairperson of the Board | ||
| Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
| Frances G. Rathke,2 Born: 1960 | 2020 | 191 |
| Trustee | ||
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
| Gregory A. Russo, Born: 1949 | 2009 | 191 |
| Trustee | ||
| Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986–1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989–1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990–1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
| Non-Independent Trustees3 | ||
| Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
| Andrew G. Arnott, Born: 1971 | 2017 | 191 |
| President and Non-Independent Trustee | ||
| Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 27 |
| Non-Independent Trustees3 (continued) | ||
| Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
| Marianne Harrison, Born: 1963 | 2018 | 191 |
| Non-Independent Trustee | ||
| President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). | ||
| Principal officers who are not Trustees | |
| Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
| Charles A. Rizzo, Born: 1957 | 2007 |
| Chief Financial Officer | |
| Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
| Salvatore Schiavone, Born: 1965 | 2010 |
| Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
| Christopher (Kit) Sechler, Born: 1973 | 2018 |
| Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). | |
| Trevor Swanberg, Born: 1979 | 2020 |
| Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). | |
The business
address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
| 28 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
The Statement
of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
| 1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
| 2 | Member of the Audit Committee. |
| 3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
| ANNUAL REPORT | JOHN HANCOCK MONEY MARKET FUND | 29 |
More information
The fund’s proxy
voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at
sec.gov or on our website.
All of the fund’s
holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our
website and the SEC’s website, sec.gov.
We make this information
on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
| You can also contact us: | ||
| 800-225-5291 | Regular mail: | Express mail: |
| jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
| 30 | JOHN HANCOCK MONEY MARKET FUND | ANNUAL REPORT |
John Hancock family of funds
A fund’s investment
objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial
professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
John Hancock ETF shares are bought
and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by
Foreside Fund Services, LLC, and are subadvised by Manulife Investment Management (US) LLC or Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife
Investment Management (US) LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP
receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to
the advisability of investing in, John Hancock Multifactor ETFs.
A trusted brand
John Hancock Investment Management
is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through
a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset
management enables us to provide
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
“A trusted brand” is
based on a survey of 6,651 respondents conducted by Medallia between 3/18/20 and 5/13/20.
John Hancock Investment Management
Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife Investment Management, the
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.
NOT FDIC INSURED. MAY LOSE VALUE. NO
BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
This report is for the information
of the shareholders of John Hancock Money Market Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
| MF2123391 | 44A 3/22 |
5/2022
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