Form N-CSR John Hancock Funds II For: Jul 31
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21779
(Exact name of registrant as specified in charter)
200 BERKELEY STREET, BOSTON, MA 02116
(Address of principal executive offices) (Zip code)
SALVATORE SCHIAVONE
TREASURER
200 BERKELEY STREET
BOSTON, MA 02116
(Name and address of agent for service)
Registrant's telephone number, including area code:
(617) 543-9634
Date of fiscal year end:
July 31
Date of reporting period:
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared the following annual reports to shareholders for the period ended July 31, 2024:
John Hancock Funds II
-
John Hancock Fundamental All Cap Core Fund
-
John Hancock Multi-Asset Absolute Return Fund
John Hancock Multi-Asset Absolute Return Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Multi-Asset Absolute Return Fund (Class A/JHAAX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Multi-Asset Absolute Return Fund (Class A/JHAAX) returned 3.18% (excluding sales charges) for the year ended July 31, 2024. The most significant factors affecting fund performance during the period included a meaningful rally in global equity markets, led primarily by growth-oriented stocks in developed markets, and a shift from interest-rate increases to easier monetary policy by many of the world’s central banks—with notable exceptions in the U.S. and Japan.
TOP PERFORMANCE CONTRIBUTORS
Developed market stocks | Equities in developed countries were among the best performers, adding to the fund's performance.
Cash | A small cash and cash-equivalents position provided a noteworthy level of interest income.
Credit-related bonds | Selected, tactical positions in credit contributed modestly to performance.
TOP PERFORMANCE DETRACTORS
Defensive equity strategy | This strategy, which includes long positions in lower-risk stocks and short positions in broad equity indexes, detracted from performance as lower-risk stocks underperformed the broader market.
Foreign currency exposure | The fund’s defensive long/short positions in high-quality foreign currencies were a drag on performance, due in large part to the Japanese yen’s depreciation against most major currencies.
The views expressed in this report are exclusively those of the portfolio management team at Nordea Investment Management North America, Inc., and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| ( |
|||
| |
The Fund has designated Bloomberg U.S. Aggregate Bond Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Figures reflect maximum sales charge on Class A shares of 5.00%. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Portfolio Composition
| Common stocks | |
| Information technology | |
| Consumer staples | |
| Health care | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Industrials | |
| Utilities | |
| Materials | |
| Real estate | |
| Corporate bonds | |
| U.S. Government | |
| Other assets and liabilities, net | |
Country Composition
| United States | |
| Denmark | |
| United Kingdom | |
| France | |
| Ireland | |
| Taiwan | |
| China | |
| Germany | |
| South Korea | |
| Japan | |
| Other countries | |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectuses. For more information, please refer to the "Principal risks" section of the prospectuses.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743813
395A-A
7/24
9/24
John Hancock Multi-Asset Absolute Return Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Multi-Asset Absolute Return Fund (Class C/JHACX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Multi-Asset Absolute Return Fund (Class C/JHACX) returned 2.45% (excluding sales charges) for the year ended July 31, 2024. The most significant factors affecting fund performance during the period included a meaningful rally in global equity markets, led primarily by growth-oriented stocks in developed markets, and a shift from interest-rate increases to easier monetary policy by many of the world’s central banks—with notable exceptions in the U.S. and Japan.
TOP PERFORMANCE CONTRIBUTORS
Developed market stocks | Equities in developed countries were among the best performers, adding to the fund's performance.
Cash | A small cash and cash-equivalents position provided a noteworthy level of interest income.
Credit-related bonds | Selected, tactical positions in credit contributed modestly to performance.
TOP PERFORMANCE DETRACTORS
Defensive equity strategy | This strategy, which includes long positions in lower-risk stocks and short positions in broad equity indexes, detracted from performance as lower-risk stocks underperformed the broader market.
Foreign currency exposure | The fund’s defensive long/short positions in high-quality foreign currencies were a drag on performance, due in large part to the Japanese yen’s depreciation against most major currencies.
The views expressed in this report are exclusively those of the portfolio management team at Nordea Investment Management North America, Inc., and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Bloomberg U.S. Aggregate Bond Index | 5.10% | 0.19% | 1.61% |
| ICE BofA 0-3 Month U.S. Treasury Bill Index | 5.50% | 2.22% | 1.54% |
| 70% Bloomberg Global Aggregate Bond USD Hedged Index / 30% MSCI All Country World Index | 9.43% | 3.79% | 4.32% |
| |
The Fund has designated Bloomberg U.S. Aggregate Bond Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Class C shares sold within one year of purchase are subject to a 1.00% contingent deferred sales charge. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Portfolio Composition
| Common stocks | |
| Information technology | |
| Consumer staples | |
| Health care | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Industrials | |
| Utilities | |
| Materials | |
| Real estate | |
| Corporate bonds | |
| U.S. Government | |
| Other assets and liabilities, net | |
Country Composition
| United States | |
| Denmark | |
| United Kingdom | |
| France | |
| Ireland | |
| Taiwan | |
| China | |
| Germany | |
| South Korea | |
| Japan | |
| Other countries | |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectuses. For more information, please refer to the "Principal risks" section of the prospectuses.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743813
395A-C
7/24
9/24
John Hancock Multi-Asset Absolute Return Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Multi-Asset Absolute Return Fund (Class I/JHAIX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Multi-Asset Absolute Return Fund (Class I/JHAIX) returned 3.42% for the year ended July 31, 2024. The most significant factors affecting fund performance during the period included a meaningful rally in global equity markets, led primarily by growth-oriented stocks in developed markets, and a shift from interest-rate increases to easier monetary policy by many of the world’s central banks—with notable exceptions in the U.S. and Japan.
TOP PERFORMANCE CONTRIBUTORS
Developed market stocks | Equities in developed countries were among the best performers, adding to the fund's performance.
Cash | A small cash and cash-equivalents position provided a noteworthy level of interest income.
Credit-related bonds | Selected, tactical positions in credit contributed modestly to performance.
TOP PERFORMANCE DETRACTORS
Defensive equity strategy | This strategy, which includes long positions in lower-risk stocks and short positions in broad equity indexes, detracted from performance as lower-risk stocks underperformed the broader market.
Foreign currency exposure | The fund’s defensive long/short positions in high-quality foreign currencies were a drag on performance, due in large part to the Japanese yen’s depreciation against most major currencies.
The views expressed in this report are exclusively those of the portfolio management team at Nordea Investment Management North America, Inc., and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $250,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $250,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Bloomberg U.S. Aggregate Bond Index | 5.10% | 0.19% | 1.61% |
| ICE BofA 0-3 Month U.S. Treasury Bill Index | 5.50% | 2.22% | 1.54% |
| 70% Bloomberg Global Aggregate Bond USD Hedged Index / 30% MSCI All Country World Index | 9.43% | 3.79% | 4.32% |
| |
The Fund has designated Bloomberg U.S. Aggregate Bond Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Portfolio Composition
| Common stocks | |
| Information technology | |
| Consumer staples | |
| Health care | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Industrials | |
| Utilities | |
| Materials | |
| Real estate | |
| Corporate bonds | |
| U.S. Government | |
| Other assets and liabilities, net | |
Country Composition
| United States | |
| Denmark | |
| United Kingdom | |
| France | |
| Ireland | |
| Taiwan | |
| China | |
| Germany | |
| South Korea | |
| Japan | |
| Other countries | |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectuses. For more information, please refer to the "Principal risks" section of the prospectuses.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743813
395A-I
7/24
9/24
John Hancock Multi-Asset Absolute Return Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Multi-Asset Absolute Return Fund (Class NAV) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Multi-Asset Absolute Return Fund (Class NAV) returned 3.61% for the year ended July 31, 2024. The most significant factors affecting fund performance during the period included a meaningful rally in global equity markets, led primarily by growth-oriented stocks in developed markets, and a shift from interest-rate increases to easier monetary policy by many of the world’s central banks—with notable exceptions in the U.S. and Japan.
TOP PERFORMANCE CONTRIBUTORS
Developed market stocks | Equities in developed countries were among the best performers, adding to the fund's performance.
Cash | A small cash and cash-equivalents position provided a noteworthy level of interest income.
Credit-related bonds | Selected, tactical positions in credit contributed modestly to performance.
TOP PERFORMANCE DETRACTORS
Defensive equity strategy | This strategy, which includes long positions in lower-risk stocks and short positions in broad equity indexes, detracted from performance as lower-risk stocks underperformed the broader market.
Foreign currency exposure | The fund’s defensive long/short positions in high-quality foreign currencies were a drag on performance, due in large part to the Japanese yen’s depreciation against most major currencies.
The views expressed in this report are exclusively those of the portfolio management team at Nordea Investment Management North America, Inc., and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Bloomberg U.S. Aggregate Bond Index | 5.10% | 0.19% | 1.61% |
| ICE BofA 0-3 Month U.S. Treasury Bill Index | 5.50% | 2.22% | 1.54% |
| 70% Bloomberg Global Aggregate Bond USD Hedged Index / 30% MSCI All Country World Index | 9.43% | 3.79% | 4.32% |
| |
The Fund has designated Bloomberg U.S. Aggregate Bond Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Portfolio Composition
| Common stocks | |
| Information technology | |
| Consumer staples | |
| Health care | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Industrials | |
| Utilities | |
| Materials | |
| Real estate | |
| Corporate bonds | |
| U.S. Government | |
| Other assets and liabilities, net | |
Country Composition
| United States | |
| Denmark | |
| United Kingdom | |
| France | |
| Ireland | |
| Taiwan | |
| China | |
| Germany | |
| South Korea | |
| Japan | |
| Other countries | |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectuses. For more information, please refer to the "Principal risks" section of the prospectuses.
Availability of Additional Information
At jhinvestments.com/underlying-funds, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743813
395A-A
7/24
9/24
John Hancock Multi-Asset Absolute Return Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Multi-Asset Absolute Return Fund (Class R2/JHARX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Multi-Asset Absolute Return Fund (Class R2/JHARX) returned 3.20% for the year ended July 31, 2024. The most significant factors affecting fund performance during the period included a meaningful rally in global equity markets, led primarily by growth-oriented stocks in developed markets, and a shift from interest-rate increases to easier monetary policy by many of the world’s central banks—with notable exceptions in the U.S. and Japan.
TOP PERFORMANCE CONTRIBUTORS
Developed market stocks | Equities in developed countries were among the best performers, adding to the fund's performance.
Cash | A small cash and cash-equivalents position provided a noteworthy level of interest income.
Credit-related bonds | Selected, tactical positions in credit contributed modestly to performance.
TOP PERFORMANCE DETRACTORS
Defensive equity strategy | This strategy, which includes long positions in lower-risk stocks and short positions in broad equity indexes, detracted from performance as lower-risk stocks underperformed the broader market.
Foreign currency exposure | The fund’s defensive long/short positions in high-quality foreign currencies were a drag on performance, due in large part to the Japanese yen’s depreciation against most major currencies.
The views expressed in this report are exclusively those of the portfolio management team at Nordea Investment Management North America, Inc., and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Bloomberg U.S. Aggregate Bond Index | 5.10% | 0.19% | 1.61% |
| ICE BofA 0-3 Month U.S. Treasury Bill Index | 5.50% | 2.22% | 1.54% |
| 70% Bloomberg Global Aggregate Bond USD Hedged Index / 30% MSCI All Country World Index | 9.43% | 3.79% | 4.32% |
| |
The Fund has designated Bloomberg U.S. Aggregate Bond Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Portfolio Composition
| Common stocks | |
| Information technology | |
| Consumer staples | |
| Health care | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Industrials | |
| Utilities | |
| Materials | |
| Real estate | |
| Corporate bonds | |
| U.S. Government | |
| Other assets and liabilities, net | |
Country Composition
| United States | |
| Denmark | |
| United Kingdom | |
| France | |
| Ireland | |
| Taiwan | |
| China | |
| Germany | |
| South Korea | |
| Japan | |
| Other countries | |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectuses. For more information, please refer to the "Principal risks" section of the prospectuses.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743813
395A-R2
7/24
9/24
John Hancock Multi-Asset Absolute Return Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Multi-Asset Absolute Return Fund (Class R6/JHASX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Multi-Asset Absolute Return Fund (Class R6/JHASX) returned 3.51% for the year ended July 31, 2024. The most significant factors affecting fund performance during the period included a meaningful rally in global equity markets, led primarily by growth-oriented stocks in developed markets, and a shift from interest-rate increases to easier monetary policy by many of the world’s central banks—with notable exceptions in the U.S. and Japan.
TOP PERFORMANCE CONTRIBUTORS
Developed market stocks | Equities in developed countries were among the best performers, adding to the fund's performance.
Cash | A small cash and cash-equivalents position provided a noteworthy level of interest income.
Credit-related bonds | Selected, tactical positions in credit contributed modestly to performance.
TOP PERFORMANCE DETRACTORS
Defensive equity strategy | This strategy, which includes long positions in lower-risk stocks and short positions in broad equity indexes, detracted from performance as lower-risk stocks underperformed the broader market.
Foreign currency exposure | The fund’s defensive long/short positions in high-quality foreign currencies were a drag on performance, due in large part to the Japanese yen’s depreciation against most major currencies.
The views expressed in this report are exclusively those of the portfolio management team at Nordea Investment Management North America, Inc., and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $1,000,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $1,000,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Bloomberg U.S. Aggregate Bond Index | 5.10% | 0.19% | 1.61% |
| ICE BofA 0-3 Month U.S. Treasury Bill Index | 5.50% | 2.22% | 1.54% |
| 70% Bloomberg Global Aggregate Bond USD Hedged Index / 30% MSCI All Country World Index | 9.43% | 3.79% | 4.32% |
| |
The Fund has designated Bloomberg U.S. Aggregate Bond Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Portfolio Composition
| Common stocks | |
| Information technology | |
| Consumer staples | |
| Health care | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Industrials | |
| Utilities | |
| Materials | |
| Real estate | |
| Corporate bonds | |
| U.S. Government | |
| Other assets and liabilities, net | |
Country Composition
| United States | |
| Denmark | |
| United Kingdom | |
| France | |
| Ireland | |
| Taiwan | |
| China | |
| Germany | |
| South Korea | |
| Japan | |
| Other countries | |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectuses. For more information, please refer to the "Principal risks" section of the prospectuses.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743813
395A-R6
7/24
9/24
John Hancock Fundamental All Cap Core Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Fundamental All Cap Core Fund (Class A/JFCAX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Fundamental All Cap Core Fund (Class A/JFCAX) returned 24.58% (excluding sales charges) for the year ended July 31, 2024. The U.S. economy’s resilience, stabilized and potentially lower interest rates, plus investor enthusiasm for artificial intelligence (AI) helped fuel the market and fund’s gain.
TOP PERFORMANCE CONTRIBUTORS
The information technology sector was among the strongest performers in the portfolio in the annual period | A sizable stake in semiconductor company NVIDIA Corp., a leader in AI, surged, boosting the fund’s result.
The financials sector also stood out to the upside | An allocation to private equity company KKR & Co., Inc., which rallied sharply, notably aided fund performance.
The consumer discretionary sector further boosted the fund’s result | A sizable position in e-commerce leader Amazon.com, Inc. posted a steep gain.
TOP PERFORMANCE DETRACTORS
Consumer staples stocks generated a weak return in the fund | Of note was a position in natural foods and organic personal products company Hain Celestial Group, Inc., which plunged during the period.
Certain consumer discretionary stocks notably detracted from performance | They included recreational vehicle company Polaris, Inc. and luxury winter clothing company Canada Goose Holdings, Inc., each of which fell sharply.
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.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| |
The Fund has designated Russell 3000 Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Figures reflect maximum sales charge on Class A shares of 5.00%. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Top Ten Holdings
| Amazon.com, Inc. | |
| NVIDIA Corp. | |
| Alphabet, Inc., Class A | |
| Lennar Corp., Class A | |
| KKR & Company, Inc. | |
| Apple, Inc. | |
| Morgan Stanley | |
| Cheniere Energy, Inc. | |
| First Hawaiian, Inc. | |
| Analog Devices, Inc. | |
Sector Composition
| Information technology | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Health care | |
| Industrials | |
| Energy | |
| Real estate | |
| Consumer staples | |
| Materials | |
| Short-term investments and other |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743804
376A-A
7/24
9/24
John Hancock Fundamental All Cap Core Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Fundamental All Cap Core Fund (Class C/JFCCX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Fundamental All Cap Core Fund (Class C/JFCCX) returned 23.70% (excluding sales charges) for the year ended July 31, 2024. The U.S. economy’s resilience, stabilized and potentially lower interest rates, plus investor enthusiasm for artificial intelligence (AI) helped fuel the market and fund’s gain.
TOP PERFORMANCE CONTRIBUTORS
The information technology sector was among the strongest performers in the portfolio in the annual period | A sizable stake in semiconductor company NVIDIA Corp., a leader in AI, surged, boosting the fund’s result.
The financials sector also stood out to the upside | An allocation to private equity company KKR & Co., Inc., which rallied sharply, notably aided fund performance.
The consumer discretionary sector further boosted the fund’s result | A sizable position in e-commerce leader Amazon.com, Inc. posted a steep gain.
TOP PERFORMANCE DETRACTORS
Consumer staples stocks generated a weak return in the fund | Of note was a position in natural foods and organic personal products company Hain Celestial Group, Inc., which plunged during the period.
Certain consumer discretionary stocks notably detracted from performance | They included recreational vehicle company Polaris, Inc. and luxury winter clothing company Canada Goose Holdings, Inc., each of which fell sharply.
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.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Russell 3000 Index | 21.07% | 14.23% | 12.58% |
| |
The Fund has designated Russell 3000 Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Class C shares sold within one year of purchase are subject to a 1.00% contingent deferred sales charge. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Top Ten Holdings
| Amazon.com, Inc. | |
| NVIDIA Corp. | |
| Alphabet, Inc., Class A | |
| Lennar Corp., Class A | |
| KKR & Company, Inc. | |
| Apple, Inc. | |
| Morgan Stanley | |
| Cheniere Energy, Inc. | |
| First Hawaiian, Inc. | |
| Analog Devices, Inc. | |
Sector Composition
| Information technology | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Health care | |
| Industrials | |
| Energy | |
| Real estate | |
| Consumer staples | |
| Materials | |
| Short-term investments and other |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743804
376A-C
7/24
9/24
John Hancock Fundamental All Cap Core Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Fundamental All Cap Core Fund (Class I/JFCIX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Fundamental All Cap Core Fund (Class I/JFCIX) returned 24.95% for the year ended July 31, 2024. The U.S. economy’s resilience, stabilized and potentially lower interest rates, plus investor enthusiasm for artificial intelligence (AI) helped fuel the market and fund’s gain.
TOP PERFORMANCE CONTRIBUTORS
The information technology sector was among the strongest performers in the portfolio in the annual period | A sizable stake in semiconductor company NVIDIA Corp., a leader in AI, surged, boosting the fund’s result.
The financials sector also stood out to the upside | An allocation to private equity company KKR & Co., Inc., which rallied sharply, notably aided fund performance.
The consumer discretionary sector further boosted the fund’s result | A sizable position in e-commerce leader Amazon.com, Inc. posted a steep gain.
TOP PERFORMANCE DETRACTORS
Consumer staples stocks generated a weak return in the fund | Of note was a position in natural foods and organic personal products company Hain Celestial Group, Inc., which plunged during the period.
Certain consumer discretionary stocks notably detracted from performance | They included recreational vehicle company Polaris, Inc. and luxury winter clothing company Canada Goose Holdings, Inc., each of which fell sharply.
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.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $250,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $250,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Russell 3000 Index | 21.07% | 14.23% | 12.58% |
| |
The Fund has designated Russell 3000 Index as its broad-based securities market index in accordance with the revised definition for such an index. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Top Ten Holdings
| Amazon.com, Inc. | |
| NVIDIA Corp. | |
| Alphabet, Inc., Class A | |
| Lennar Corp., Class A | |
| KKR & Company, Inc. | |
| Apple, Inc. | |
| Morgan Stanley | |
| Cheniere Energy, Inc. | |
| First Hawaiian, Inc. | |
| Analog Devices, Inc. | |
Sector Composition
| Information technology | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Health care | |
| Industrials | |
| Energy | |
| Real estate | |
| Consumer staples | |
| Materials | |
| Short-term investments and other |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743804
376A-I
7/24
9/24
John Hancock Fundamental All Cap Core Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Fundamental All Cap Core Fund (Class R2/JFACX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Fundamental All Cap Core Fund (Class R2/JFACX) returned 24.49% for the year ended July 31, 2024. The U.S. economy’s resilience, stabilized and potentially lower interest rates, plus investor enthusiasm for artificial intelligence (AI) helped fuel the market and fund’s gain.
TOP PERFORMANCE CONTRIBUTORS
The information technology sector was among the strongest performers in the portfolio in the annual period | A sizable stake in semiconductor company NVIDIA Corp., a leader in AI, surged, boosting the fund’s result.
The financials sector also stood out to the upside | An allocation to private equity company KKR & Co., Inc., which rallied sharply, notably aided fund performance.
The consumer discretionary sector further boosted the fund’s result | A sizable position in e-commerce leader Amazon.com, Inc. posted a steep gain.
TOP PERFORMANCE DETRACTORS
Consumer staples stocks generated a weak return in the fund | Of note was a position in natural foods and organic personal products company Hain Celestial Group, Inc., which plunged during the period.
Certain consumer discretionary stocks notably detracted from performance | They included recreational vehicle company Polaris, Inc. and luxury winter clothing company Canada Goose Holdings, Inc., each of which fell sharply.
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.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Russell 3000 Index | 21.07% | 14.23% | 12.58% |
| |
The Fund has designated Russell 3000 Index as its broad-based securities market index in accordance with the revised definition for such an index. |
| |
Class R2 shares were first offered on 3-27-15. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Top Ten Holdings
| Amazon.com, Inc. | |
| NVIDIA Corp. | |
| Alphabet, Inc., Class A | |
| Lennar Corp., Class A | |
| KKR & Company, Inc. | |
| Apple, Inc. | |
| Morgan Stanley | |
| Cheniere Energy, Inc. | |
| First Hawaiian, Inc. | |
| Analog Devices, Inc. | |
Sector Composition
| Information technology | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Health care | |
| Industrials | |
| Energy | |
| Real estate | |
| Consumer staples | |
| Materials | |
| Short-term investments and other |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743804
376A-R2
7/24
9/24
John Hancock Fundamental All Cap Core Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Fundamental All Cap Core Fund (Class R4/JFARX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Fundamental All Cap Core Fund (Class R4/JFARX) returned 24.85% for the year ended July 31, 2024. The U.S. economy’s resilience, stabilized and potentially lower interest rates, plus investor enthusiasm for artificial intelligence (AI) helped fuel the market and fund’s gain.
TOP PERFORMANCE CONTRIBUTORS
The information technology sector was among the strongest performers in the portfolio in the annual period | A sizable stake in semiconductor company NVIDIA Corp., a leader in AI, surged, boosting the fund’s result.
The financials sector also stood out to the upside | An allocation to private equity company KKR & Co., Inc., which rallied sharply, notably aided fund performance.
The consumer discretionary sector further boosted the fund’s result | A sizable position in e-commerce leader Amazon.com, Inc. posted a steep gain.
TOP PERFORMANCE DETRACTORS
Consumer staples stocks generated a weak return in the fund | Of note was a position in natural foods and organic personal products company Hain Celestial Group, Inc., which plunged during the period.
Certain consumer discretionary stocks notably detracted from performance | They included recreational vehicle company Polaris, Inc. and luxury winter clothing company Canada Goose Holdings, Inc., each of which fell sharply.
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.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Russell 3000 Index | 21.07% | 14.23% | 12.58% |
| |
The Fund has designated Russell 3000 Index as its broad-based securities market index in accordance with the revised definition for such an index. |
| |
Class R4 shares were first offered on 3-27-15. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Top Ten Holdings
| Amazon.com, Inc. | |
| NVIDIA Corp. | |
| Alphabet, Inc., Class A | |
| Lennar Corp., Class A | |
| KKR & Company, Inc. | |
| Apple, Inc. | |
| Morgan Stanley | |
| Cheniere Energy, Inc. | |
| First Hawaiian, Inc. | |
| Analog Devices, Inc. | |
Sector Composition
| Information technology | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Health care | |
| Industrials | |
| Energy | |
| Real estate | |
| Consumer staples | |
| Materials | |
| Short-term investments and other |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743804
376A-R4
7/24
9/24
John Hancock Fundamental All Cap Core Fund
Annual SHAREHOLDER REPORT | July 31, 2024
What were the fund costs during the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Fundamental All Cap Core Fund (Class R6/JFAIX) |
$ |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
Fundamental All Cap Core Fund (Class R6/JFAIX) returned 25.10% for the year ended July 31, 2024. The U.S. economy’s resilience, stabilized and potentially lower interest rates, plus investor enthusiasm for artificial intelligence (AI) helped fuel the market and fund’s gain.
TOP PERFORMANCE CONTRIBUTORS
The information technology sector was among the strongest performers in the portfolio in the annual period | A sizable stake in semiconductor company NVIDIA Corp., a leader in AI, surged, boosting the fund’s result.
The financials sector also stood out to the upside | An allocation to private equity company KKR & Co., Inc., which rallied sharply, notably aided fund performance.
The consumer discretionary sector further boosted the fund’s result | A sizable position in e-commerce leader Amazon.com, Inc. posted a steep gain.
TOP PERFORMANCE DETRACTORS
Consumer staples stocks generated a weak return in the fund | Of note was a position in natural foods and organic personal products company Hain Celestial Group, Inc., which plunged during the period.
Certain consumer discretionary stocks notably detracted from performance | They included recreational vehicle company Polaris, Inc. and luxury winter clothing company Canada Goose Holdings, Inc., each of which fell sharply.
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.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $1,000,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $1,000,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| Russell 3000 Index | 21.07% | 14.23% | 12.58% |
| |
The Fund has designated Russell 3000 Index as its broad-based securities market index in accordance with the revised definition for such an index. |
| |
Class R6 shares were first offered on 3-27-15. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
Performance figures assume all distributions have been reinvested and reflect the beneficial effect of any expense reductions. Past performance does not guarantee future results. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown and can be found at jhinvestments.com/investments or by calling 800-225-5291. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. It is not possible to invest directly in an index.
Fund Statistics
| Fund net assets | $ |
| Total number of portfolio holdings | |
| Total advisory fees paid (net) | $ |
| Portfolio turnover rate | |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing percentage of the total net assets of the fund.
Top Ten Holdings
| Amazon.com, Inc. | |
| NVIDIA Corp. | |
| Alphabet, Inc., Class A | |
| Lennar Corp., Class A | |
| KKR & Company, Inc. | |
| Apple, Inc. | |
| Morgan Stanley | |
| Cheniere Energy, Inc. | |
| First Hawaiian, Inc. | |
| Analog Devices, Inc. | |
Sector Composition
| Information technology | |
| Consumer discretionary | |
| Financials | |
| Communication services | |
| Health care | |
| Industrials | |
| Energy | |
| Real estate | |
| Consumer staples | |
| Materials | |
| Short-term investments and other |
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
The fund is subject to various risks as described in the fund's prospectus. For more information, please refer to the "Principal risks" section of the prospectus.
Availability of Additional Information
At jhinvestments.com/documents, you can find additional information about the fund, including the fund’s:
-
Prospectus
-
Financial information
-
Fund holdings
-
Proxy voting information
You can also request this information by contacting us at 800-225-5291.
This report is for the information of the shareholders in this fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by the fund's prospectus.
John Hancock Investment Management Distributors LLC, Member FINRA, SIPC 200 Berkeley Street, Boston, MA 02116-5010, 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 it, and by its affiliates under license.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF3743804
376A-R6
7/24
9/24
ITEM 2. CODE OF ETHICS.
As of the end of the year, July 31, 2024, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to $153,409 and $156,293 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively. These fees were billed to the registrant and were approved by the registrant's audit committee.
(b) Audit-Related Services
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews and a software licensing fee. Amounts billed to the registrant were $1,526 and $1,224 for fiscal years ended July 31, 2024 and July 31, 2023, respectively.
Amounts billed to control affiliates were $145,263 and $127,376 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to $8,881 and $16,613 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
(d) All Other Fees
Other fees amounted to $739 and $0 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively. The nature of the services comprising all other fees is advisory services provided to the investment manager. These fees were approved by the registrant's audit committee.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The registrant's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per year/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per year/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
Audit-Related Fees, Tax Fees and All Other Fees
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) According to the registrant's principal accountant for the fiscal year ended July 31, 2024, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g) The aggregate non-audit fees billed by the registrant's principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $1,091,664 for the fiscal year ended July 31, 2024 and $1,272,994 for the fiscal year ended July 31, 2023.
(h) The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Frances G. Rathke – Chairperson
William H. Cunningham
Hassell H. McClellan
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Refer to information included in Item 7.
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
The Registrant prepared financial statements and financial highlights for the year ended July 31, 2024 for the following funds:
John Hancock Funds II
-
John Hancock Fundamental All Cap Core Fund
-
John Hancock Multi-Asset Absolute Return Fund
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PROXY DISCLOSURE FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Information included in Item 7, if applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Refer to information included in Item 7.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Information included in Item 7, if applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATE PURCHASERS.
Not applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter".
ITEM 16. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
(a)(1) Code of Ethics for Covered Officers is attached.
(a)(2) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter”.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Funds II
| By: | /s/ Kristie M. Feinberg |
| ------------------------------ | |
| Kristie M. Feinberg | |
| President | |
| Date: | September 12, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Kristie M. Feinberg |
| ------------------------------ | |
| Kristie M. Feinberg | |
| President | |
| Date: | September 12, 2024 |
| By: | /s/ Fernando A. Silva |
| --------------------------- | |
| Fernando A. Silva | |
| Chief Financial Officer | |
| Date: | September 12, 2024 |
ITEM 2. CODE OF ETHICS.
As of the end of the year, July 31, 2024, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to $153,409 and $156,293 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively. These fees were billed to the registrant and were approved by the registrant's audit committee.
(b) Audit-Related Services
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews and a software licensing fee. Amounts billed to the registrant were $1,526 and $1,224 for fiscal years ended July 31, 2024 and July 31, 2023, respectively.
Amounts billed to control affiliates were $145,263 and $127,376 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to $8,881 and $16,613 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
(d) All Other Fees
Other fees amounted to $739 and $0 for the fiscal years ended July 31, 2024 and July 31, 2023, respectively. The nature of the services comprising all other fees is advisory services provided to the investment manager. These fees were approved by the registrant's audit committee.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The registrant's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per year/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per year/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
Audit-Related Fees, Tax Fees and All Other Fees
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) According to the registrant's principal accountant for the fiscal year ended July 31, 2024, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g) The aggregate non-audit fees billed by the registrant's principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $1,091,664 for the fiscal year ended July 31, 2024 and $1,272,994 for the fiscal year ended July 31, 2023.
(h) The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Frances G. Rathke – Chairperson
William H. Cunningham
Hassell H. McClellan
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Refer to information included in Item 7.
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
The Registrant prepared financial statements and financial highlights for the year ended July 31, 2024 for the following funds:
John Hancock Funds II
-
John Hancock Fundamental All Cap Core Fund
-
John Hancock Multi-Asset Absolute Return Fund
John Hancock
Fundamental All Cap Core Fund
Table of contents
| 1 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | |
Fund’s investments
AS OF
7-31-24
| Shares | Value | ||||
| Common stocks 98.1% | $530,371,669 | ||||
| (Cost $378,282,972) | |||||
| Communication services 9.7% | 52,471,777 | ||||
| Entertainment 3.3% | |||||
| Liberty Media Corp.-Liberty Formula One, Series C (A) | 159,600 | 12,906,852 | |||
| Warner Brothers Discovery, Inc. (A) | 543,252 | 4,699,130 | |||
| Interactive media and services 6.4% | |||||
| Alphabet, Inc., Class A | 179,731 | 30,831,056 | |||
| CarGurus, Inc. (A) | 162,560 | 4,034,739 | |||
| Consumer discretionary 22.3% | 120,600,521 | ||||
| Automobile components 1.2% | |||||
| Mobileye Global, Inc., Class A (A) | 307,879 | 6,465,459 | |||
| Broadline retail 7.3% | |||||
| Amazon.com, Inc. (A) | 212,585 | 39,749,140 | |||
| Hotels, restaurants and leisure 2.1% | |||||
| Las Vegas Sands Corp. | 144,013 | 5,712,996 | |||
| Vail Resorts, Inc. | 30,091 | 5,476,863 | |||
| Household durables 5.9% | |||||
| Lennar Corp., Class A | 137,645 | 24,353,530 | |||
| NVR, Inc. (A) | 890 | 7,660,657 | |||
| Leisure products 1.2% | |||||
| Polaris, Inc. | 80,831 | 6,731,606 | |||
| Specialty retail 3.6% | |||||
| Avolta AG (A) | 131,472 | 4,960,626 | |||
| Group 1 Automotive, Inc. | 39,066 | 14,287,218 | |||
| Textiles, apparel and luxury goods 1.0% | |||||
| Canada Goose Holdings, Inc. (A) | 315,279 | 3,641,472 | |||
| Salvatore Ferragamo SpA | 179,012 | 1,560,954 | |||
| Consumer staples 1.4% | 7,621,117 | ||||
| Beverages 1.4% | |||||
| Anheuser-Busch InBev SA/NV, ADR | 128,086 | 7,621,117 | |||
| Energy 4.9% | 26,303,589 | ||||
| Oil, gas and consumable fuels 4.9% | |||||
| Cheniere Energy, Inc. | 101,098 | 18,464,539 | |||
| Suncor Energy, Inc. | 196,369 | 7,839,050 | |||
| Financials 15.9% | 85,948,274 | ||||
| Banks 3.4% | |||||
| First Hawaiian, Inc. | 734,913 | 18,402,222 | |||
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 2 |
| Shares | Value | ||||
| Financials (continued) | |||||
| Capital markets 12.5% | |||||
| KKR & Company, Inc. | 188,157 | $23,227,982 | |||
| Morgan Stanley | 201,260 | 20,772,045 | |||
| S&P Global, Inc. | 21,332 | 10,340,260 | |||
| The Goldman Sachs Group, Inc. | 25,943 | 13,205,765 | |||
| Health care 7.1% | 38,127,879 | ||||
| Biotechnology 1.3% | |||||
| Alnylam Pharmaceuticals, Inc. (A) | 11,254 | 2,672,375 | |||
| Moderna, Inc. (A) | 34,759 | 4,143,968 | |||
| Health care equipment and supplies 1.9% | |||||
| Hologic, Inc. (A) | 127,301 | 10,389,035 | |||
| Health care providers and services 1.6% | |||||
| Elevance Health, Inc. | 15,771 | 8,390,645 | |||
| Life sciences tools and services 1.9% | |||||
| Avantor, Inc. (A) | 250,634 | 6,704,460 | |||
| Thermo Fisher Scientific, Inc. | 5,733 | 3,516,278 | |||
| Pharmaceuticals 0.4% | |||||
| Elanco Animal Health, Inc. (A) | 177,233 | 2,311,118 | |||
| Industrials 6.1% | 33,054,151 | ||||
| Electrical equipment 2.0% | |||||
| Regal Rexnord Corp. | 56,001 | 8,998,241 | |||
| Sensata Technologies Holding PLC | 44,310 | 1,727,647 | |||
| Machinery 1.6% | |||||
| Parker-Hannifin Corp. | 15,951 | 8,951,063 | |||
| Trading companies and distributors 2.5% | |||||
| United Rentals, Inc. | 17,669 | 13,377,200 | |||
| Information technology 26.2% | 141,913,227 | ||||
| Semiconductors and semiconductor equipment 11.6% | |||||
| Analog Devices, Inc. | 72,997 | 16,890,046 | |||
| NVIDIA Corp. | 314,860 | 36,844,917 | |||
| Texas Instruments, Inc. | 44,235 | 9,015,535 | |||
| Software 10.5% | |||||
| Autodesk, Inc. (A) | 25,661 | 6,351,611 | |||
| Microsoft Corp. | 14,997 | 6,273,995 | |||
| Oracle Corp. | 64,621 | 9,011,398 | |||
| Roper Technologies, Inc. | 13,420 | 7,310,545 | |||
| Salesforce, Inc. | 55,677 | 14,409,208 | |||
| Workday, Inc., Class A (A) | 60,634 | 13,771,194 | |||
| Technology hardware, storage and peripherals 4.1% | |||||
| Apple, Inc. | 99,220 | 22,034,778 | |||
| 3 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
| Shares | Value | ||||
| Materials 1.0% | $5,555,874 | ||||
| Chemicals 1.0% | |||||
| Axalta Coating Systems, Ltd. (A) | 155,845 | 5,555,874 | |||
| Real estate 3.5% | 18,775,260 | ||||
| Real estate management and development 0.2% | |||||
| Five Point Holdings LLC, Class A (A) | 275,797 | 923,920 | |||
| Specialized REITs 3.3% | |||||
| American Tower Corp. | 5,948 | 1,310,939 | |||
| Crown Castle, Inc. | 150,258 | 16,540,401 | |||
| Yield (%) | Shares | Value | |||
| Short-term investments 1.8% | $9,662,611 | ||||
| (Cost $9,659,634) | |||||
| Short-term funds 1.8% | 9,662,611 | ||||
| John Hancock Collateral Trust (B) | 5.4652(C) | 966,271 | 9,662,611 | ||
| Total investments (Cost $387,942,606) 99.9% | $540,034,280 | ||||
| Other assets and liabilities, net 0.1% | 735,842 | ||||
| Total net assets 100.0% | $540,770,122 | ||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
| Security Abbreviations and Legend | |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| (B) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
| (C) | The rate shown is the annualized seven-day yield as of 7-31-24. |
At 7-31-24, the aggregate cost of
investments for federal income tax purposes was $390,331,570. Net unrealized appreciation aggregated to $149,702,710, of which $163,910,701 related to gross unrealized appreciation and $14,207,991 related to gross
unrealized depreciation.
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 4 |
Financial statements
STATEMENT OF ASSETS AND
LIABILITIES 7-31-24
| Assets | |
| Unaffiliated investments, at value (Cost $378,282,972) | $530,371,669 |
| Affiliated investments, at value (Cost $9,659,634) | 9,662,611 |
| Total investments, at value (Cost $387,942,606) | 540,034,280 |
| Foreign currency, at value (Cost $52) | 52 |
| Dividends and interest receivable | 294,745 |
| Receivable for fund shares sold | 1,183,607 |
| Receivable from affiliates | 10,579 |
| Other assets | 77,079 |
| Total assets | 541,600,342 |
| Liabilities | |
| Payable for fund shares repurchased | 659,880 |
| Payable to affiliates | |
| Accounting and legal services fees | 15,204 |
| Transfer agent fees | 39,812 |
| Distribution and service fees | 40 |
| Trustees’ fees | 650 |
| Other liabilities and accrued expenses | 114,634 |
| Total liabilities | 830,220 |
| Net assets | $540,770,122 |
| Net assets consist of | |
| Paid-in capital | $393,740,258 |
| Total distributable earnings (loss) | 147,029,864 |
| Net assets | $540,770,122 |
| 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 ($164,887,076 ÷ 4,663,340 shares)1 | $35.36 |
| Class C ($20,636,935 ÷ 628,634 shares)1 | $32.83 |
| Class I ($252,146,007 ÷ 6,921,224 shares) | $36.43 |
| Class R2 ($191,909 ÷ 5,408 shares) | $35.49 |
| Class R4 ($118,080 ÷ 3,259 shares) | $36.23 |
| Class R6 ($102,790,115 ÷ 2,802,563 shares) | $36.68 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $37.22 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 5 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 7-31-24
| Investment income | |
| Dividends | $4,722,515 |
| Dividends from affiliated investments | 571,607 |
| Less foreign taxes withheld | (59,999) |
| Total investment income | 5,234,123 |
| Expenses | |
| Investment management fees | 2,742,531 |
| Distribution and service fees | 543,429 |
| Accounting and legal services fees | 78,356 |
| Transfer agent fees | 381,740 |
| Trustees’ fees | 9,309 |
| Custodian fees | 59,057 |
| State registration fees | 141,196 |
| Printing and postage | 44,526 |
| Professional fees | 110,169 |
| Other | 26,464 |
| Total expenses | 4,136,777 |
| Less expense reductions | (316,943) |
| Net expenses | 3,819,834 |
| Net investment income | 1,414,289 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 10,922,770 |
| Affiliated investments | 1,571 |
| 10,924,341 | |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments | 88,225,697 |
| Affiliated investments | 2,834 |
| 88,228,531 | |
| Net realized and unrealized gain | 99,152,872 |
| Increase in net assets from operations | $100,567,161 |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 6 |
STATEMENTS OF CHANGES IN NET
ASSETS
| Year ended 7-31-24 | Year ended 7-31-23 | |
| Increase (decrease) in net assets | ||
| From operations | ||
| Net investment income | $1,414,289 | $480,486 |
| Net realized gain (loss) | 10,924,341 | (16,022,090) |
| Change in net unrealized appreciation (depreciation) | 88,228,531 | 49,847,498 |
| Increase in net assets resulting from operations | 100,567,161 | 34,305,894 |
| Distributions to shareholders | ||
| From earnings | ||
| Class A | (156,556) | (4,240,407) |
| Class C | — | (479,220) |
| Class I | (599,500) | (3,616,165) |
| Class R2 | (68) | (5,547) |
| Class R4 | (314) | (3,639) |
| Class R6 | (345,150) | (2,682,185) |
| Total distributions | (1,101,588) | (11,027,163) |
| From fund share transactions | 122,430,237 | 14,058,030 |
| Total increase | 221,895,810 | 37,336,761 |
| Net assets | ||
| Beginning of year | 318,874,312 | 281,537,551 |
| End of year | $540,770,122 | $318,874,312 |
| 7 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
Financial highlights
| CLASS A SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $28.42 | $26.23 | $29.93 | $21.48 | $18.51 |
| Net investment income (loss)1 | 0.05 | —2 | (0.06) | (0.10) | (0.02) |
| Net realized and unrealized gain (loss) on investments | 6.93 | 3.36 | (2.58) | 9.29 | 2.99 |
| Total from investment operations | 6.98 | 3.36 | (2.64) | 9.19 | 2.97 |
| Less distributions | |||||
| From net investment income | (0.04) | — | — | — | —2 |
| From net realized gain | — | (1.17) | (1.06) | (0.74) | — |
| Total distributions | (0.04) | (1.17) | (1.06) | (0.74) | —2 |
| Net asset value, end of period | $35.36 | $28.42 | $26.23 | $29.93 | $21.48 |
| Total return (%)3,4 | 24.58 | 14.00 | (9.29) | 43.58 | 16.05 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $165 | $112 | $91 | $74 | $53 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.20 | 1.24 | 1.23 | 1.31 | 1.40 |
| Expenses including reductions | 1.13 | 1.13 | 1.12 | 1.24 | 1.27 |
| Net investment income (loss) | 0.16 | —5 | (0.21) | (0.39) | (0.11) |
| Portfolio turnover (%) | 12 | 36 | 25 | 18 | 22 |
| 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 | Less than 0.005%. |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 8 |
| CLASS C SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $26.54 | $24.75 | $28.48 | $20.62 | $17.89 |
| Net investment loss1 | (0.14) | (0.17) | (0.24) | (0.27) | (0.15) |
| Net realized and unrealized gain (loss) on investments | 6.43 | 3.13 | (2.43) | 8.87 | 2.88 |
| Total from investment operations | 6.29 | 2.96 | (2.67) | 8.60 | 2.73 |
| Less distributions | |||||
| From net realized gain | — | (1.17) | (1.06) | (0.74) | — |
| Net asset value, end of period | $32.83 | $26.54 | $24.75 | $28.48 | $20.62 |
| Total return (%)2,3 | 23.70 | 13.19 | (9.88) | 42.51 | 15.26 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $21 | $12 | $10 | $8 | $6 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.90 | 1.94 | 1.93 | 2.01 | 2.10 |
| Expenses including reductions | 1.83 | 1.83 | 1.82 | 1.94 | 1.97 |
| Net investment loss | (0.54) | (0.71) | (0.91) | (1.09) | (0.81) |
| Portfolio turnover (%) | 12 | 36 | 25 | 18 | 22 |
| 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. |
| 9 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $29.26 | $26.89 | $30.56 | $21.86 | $18.82 |
| Net investment income (loss)1 | 0.13 | 0.08 | 0.03 | (0.03) | 0.04 |
| Net realized and unrealized gain (loss) on investments | 7.15 | 3.46 | (2.64) | 9.47 | 3.03 |
| Total from investment operations | 7.28 | 3.54 | (2.61) | 9.44 | 3.07 |
| Less distributions | |||||
| From net investment income | (0.11) | — | — | — | (0.03) |
| From net realized gain | — | (1.17) | (1.06) | (0.74) | — |
| Total distributions | (0.11) | (1.17) | (1.06) | (0.74) | (0.03) |
| Net asset value, end of period | $36.43 | $29.26 | $26.89 | $30.56 | $21.86 |
| Total return (%)2 | 24.95 | 14.33 | (9.00) | 43.97 | 16.34 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $252 | $123 | $120 | $38 | $18 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.90 | 0.94 | 0.93 | 1.01 | 1.10 |
| Expenses including reductions | 0.83 | 0.83 | 0.83 | 0.94 | 0.97 |
| Net investment income (loss) | 0.45 | 0.31 | 0.10 | (0.10) | 0.19 |
| Portfolio turnover (%) | 12 | 36 | 25 | 18 | 22 |
| 1 | Based on average daily shares outstanding. |
| 2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 10 |
| CLASS R2 SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $28.52 | $26.34 | $30.07 | $21.61 | $18.64 |
| Net investment income (loss)1 | 0.02 | (0.02) | (0.09) | (0.13) | (0.04) |
| Net realized and unrealized gain (loss) on investments | 6.96 | 3.37 | (2.58) | 9.33 | 3.01 |
| Total from investment operations | 6.98 | 3.35 | (2.67) | 9.20 | 2.97 |
| Less distributions | |||||
| From net investment income | (0.01) | — | — | — | — |
| From net realized gain | — | (1.17) | (1.06) | (0.74) | — |
| Total distributions | (0.01) | (1.17) | (1.06) | (0.74) | — |
| Net asset value, end of period | $35.49 | $28.52 | $26.34 | $30.07 | $21.61 |
| Total return (%)2 | 24.49 | 13.89 | (9.35) | 43.35 | 15.93 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $—3 | $—3 | $—3 | $—3 | $—3 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.29 | 1.33 | 1.32 | 1.40 | 1.49 |
| Expenses including reductions | 1.21 | 1.21 | 1.21 | 1.34 | 1.36 |
| Net investment income (loss) | 0.07 | (0.09) | (0.30) | (0.49) | (0.21) |
| Portfolio turnover (%) | 12 | 36 | 25 | 18 | 22 |
| 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 | Less than $500,000. |
| 11 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R4 SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $29.11 | $26.77 | $30.45 | $21.79 | $18.75 |
| Net investment income (loss)1 | 0.13 | 0.06 | 0.01 | (0.03) | 0.01 |
| Net realized and unrealized gain (loss) on investments | 7.09 | 3.45 | (2.63) | 9.43 | 3.05 |
| Total from investment operations | 7.22 | 3.51 | (2.62) | 9.40 | 3.06 |
| Less distributions | |||||
| From net investment income | (0.10) | — | — | — | (0.02) |
| From net realized gain | — | (1.17) | (1.06) | (0.74) | — |
| Total distributions | (0.10) | (1.17) | (1.06) | (0.74) | (0.02) |
| Net asset value, end of period | $36.23 | $29.11 | $26.77 | $30.45 | $21.79 |
| Total return (%)2 | 24.85 | 14.28 | (9.06) | 43.92 | 16.32 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $—3 | $—3 | $—3 | $—3 | $—3 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.06 | 1.11 | 1.08 | 1.15 | 1.24 |
| Expenses including reductions | 0.89 | 0.89 | 0.87 | 0.99 | 1.00 |
| Net investment income (loss) | 0.40 | 0.23 | 0.04 | (0.13) | 0.06 |
| Portfolio turnover (%) | 12 | 36 | 25 | 18 | 22 |
| 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 | Less than $500,000. |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 12 |
| CLASS R6 SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $29.45 | $27.03 | $30.68 | $21.92 | $18.86 |
| Net investment income1 | 0.17 | 0.10 | 0.06 | —2 | 0.06 |
| Net realized and unrealized gain (loss) on investments | 7.20 | 3.49 | (2.65) | 9.50 | 3.05 |
| Total from investment operations | 7.37 | 3.59 | (2.59) | 9.50 | 3.11 |
| Less distributions | |||||
| From net investment income | (0.14) | — | — | — | (0.05) |
| From net realized gain | — | (1.17) | (1.06) | (0.74) | — |
| Total distributions | (0.14) | (1.17) | (1.06) | (0.74) | (0.05) |
| Net asset value, end of period | $36.68 | $29.45 | $27.03 | $30.68 | $21.92 |
| Total return (%)3 | 25.10 | 14.44 | (8.90) | 44.12 | 16.49 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $103 | $72 | $61 | $24 | $16 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 0.79 | 0.83 | 0.82 | 0.90 | 0.99 |
| Expenses including reductions | 0.72 | 0.72 | 0.72 | 0.84 | 0.85 |
| Net investment income | 0.57 | 0.40 | 0.20 | 0.01 | 0.30 |
| Portfolio turnover (%) | 12 | 36 | 25 | 18 | 22 |
| 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. |
| 13 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock Fundamental All Cap
Core Fund (the fund) is a series of John Hancock Funds II (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 long-term capital appreciation.
The fund may offer multiple classes
of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain
investors. Class R2 and Class R4 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other 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. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. 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 net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities,
the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal
market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end
mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange
rates supplied by an independent pricing vendor.
In certain instances, the Pricing
Committee of the Advisor 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.
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the
Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready
market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of
securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by
the Pricing Committee,
| | JOHN HANCOCK Fundamental All Cap Core Fund | 14 |
following procedures established by the Advisor and
adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the
close of foreign exchanges or markets and the close of the NYSE.
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 Advisor’s 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.
The following is a summary of the
values by input classification of the fund’s investments as of July 31, 2024, by major security category or type:
| Total value at 7-31-24 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
| Investments in securities: | ||||
| Assets | ||||
| Common stocks | ||||
| Communication services | $52,471,777 | $52,471,777 | — | — |
| Consumer discretionary | 120,600,521 | 114,078,941 | $6,521,580 | — |
| Consumer staples | 7,621,117 | 7,621,117 | — | — |
| Energy | 26,303,589 | 26,303,589 | — | — |
| Financials | 85,948,274 | 85,948,274 | — | — |
| Health care | 38,127,879 | 38,127,879 | — | — |
| Industrials | 33,054,151 | 33,054,151 | — | — |
| Information technology | 141,913,227 | 141,913,227 | — | — |
| Materials | 5,555,874 | 5,555,874 | — | — |
| Real estate | 18,775,260 | 18,775,260 | — | — |
| Short-term investments | 9,662,611 | 9,662,611 | — | — |
| Total investments in securities | $540,034,280 | $533,512,700 | $6,521,580 | — |
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year
as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the
distributions are known.
Security transactions and related
investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are
reported on trade date. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend
income,
| 15 | JOHN HANCOCK Fundamental All Cap Core Fund | |
net of withholding taxes, is recorded when the fund
becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may
include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of
securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is
reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar
value of securities denominated in that currency.
Funds that invest internationally
generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs),
accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based
upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security
sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
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. 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 July 31, 2024, the fund had no borrowings
under the line of credit. Commitment fees for the year ended July 31, 2024 were $4,797.
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.
| | JOHN HANCOCK Fundamental All Cap Core Fund | 16 |
For federal income tax purposes, as
of July 31, 2024, the fund has a short-term capital loss carryforward of $3,471,104 available to offset future net realized capital gains. This carryforward does not expire.
As of July 31, 2024, 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 and pays dividends annually. Capital gain
distributions, if any, are typically distributed annually.
The tax character of distributions
for the years ended July 31, 2024 and 2023 was as follows:
| July 31, 2024 | July 31, 2023 | |
| Ordinary income | $1,101,588 | — |
| Long-term capital gains | — | $11,027,163 |
| Total | $1,101,588 | $11,027,163 |
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 July 31,
2024, the components of distributable earnings on a tax basis consisted of $798,258 of undistributed ordinary income.
Such distributions and distributable
earnings, on a tax basis, if any, 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 at fiscal year end. 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. Book-tax differences are primarily attributable to wash sale loss deferrals.
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)
0.675% of the first $2.5 billion of the fund’s aggregate net assets; and b) 0.650% of the aggregate net assets in excess of $2.5 billion. Aggregate net assets are the net assets of the fund, Fundamental All Cap
Core Trust, a series of John Hancock Variable Insurance Trust; and, effective November 2, 2023, the net assets of Fundamental All Cap Core
| 17 | JOHN HANCOCK Fundamental All Cap Core Fund | |
ETF, a series of John Hancock Exchange-Traded Fund
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 July 31, 2024, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement expires on July 31, 2026, 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 has contractually agreed
to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.71% of average daily net assets of the fund. For purposes of this
agreement, “expenses of the fund” means all fund expenses, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in
the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. This agreement expires on
December 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.
For the year ended July 31, 2024,
the expense reductions described above amounted to the following:
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 July 31, 2024, were equivalent to a net annual effective rate of 0.60% 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 July 31, 2024, amounted to an annual rate of 0.02% 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. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. 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:
| | JOHN HANCOCK Fundamental All Cap Core Fund | 18 |
| Class | Rule 12b-1 Fee | Service fee |
| Class A | 0.30% | — |
| Class C | 1.00% | — |
| Class R2 | 0.25% | 0.25% |
| Class R4 | 0.25% | 0.10% |
The fund’s Distributor has
contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on December 31, 2024, unless renewed by mutual agreement of the fund and the Distributor based upon a
determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $100 for Class R4 shares for the year ended July 31, 2024.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $359,590 for the year ended July 31, 2024. Of this amount, $60,365 was
retained and used for printing prospectuses, advertising, sales literature and other purposes and $299,225 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be
subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject
to a 1.00% sales charge. 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. 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
July 31, 2024, CDSCs received by the Distributor amounted to $1,889 and $3,126 for Class A and Class C shares, respectively.
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 July 31, 2024 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $389,058 | $150,290 |
| Class C | 153,321 | 17,762 |
| Class I | — | 209,481 |
| Class R2 | 779 | 8 |
| Class R4 | 271 | 5 |
| Class R6 | — | 4,194 |
| Total | $543,429 | $381,740 |
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.
| 19 | JOHN HANCOCK Fundamental All Cap Core Fund | |
Note 5—Fund share transactions
Transactions in fund shares for the
years ended July 31, 2024 and 2023 were as follows:
| Year Ended 7-31-24 | Year Ended 7-31-23 | |||
| Shares | Amount | Shares | Amount | |
| Class A shares | ||||
| Sold | 1,691,821 | $51,770,724 | 1,315,971 | $33,452,680 |
| Distributions reinvested | 5,175 | 156,037 | 189,351 | 4,239,568 |
| Repurchased | (958,971) | (29,335,635) | (1,056,848) | (26,356,825) |
| Net increase | 738,025 | $22,591,126 | 448,474 | $11,335,423 |
| Class C shares | ||||
| Sold | 297,908 | $8,409,014 | 153,627 | $3,617,670 |
| Distributions reinvested | — | — | 22,820 | 479,220 |
| Repurchased | (114,548) | (3,316,464) | (124,677) | (2,922,791) |
| Net increase | 183,360 | $5,092,550 | 51,770 | $1,174,099 |
| Class I shares | ||||
| Sold | 5,206,102 | $160,417,166 | 3,396,943 | $87,900,603 |
| Distributions reinvested | 19,328 | 599,346 | 157,054 | 3,615,390 |
| Repurchased | (2,517,835) | (77,793,656) | (3,788,873) | (94,974,774) |
| Net increase (decrease) | 2,707,595 | $83,222,856 | (234,876) | $(3,458,781) |
| Class R2 shares | ||||
| Sold | 645 | $20,898 | 231 | $5,604 |
| Distributions reinvested | 2 | 53 | 191 | 4,303 |
| Repurchased | (319) | (10,136) | (48) | (1,200) |
| Net increase | 328 | $10,815 | 374 | $8,707 |
| Class R4 shares | ||||
| Sold | 108 | $3,305 | 114 | $2,910 |
| Distributions reinvested | 2 | 64 | 29 | 659 |
| Repurchased | (55) | (1,739) | (21) | (572) |
| Net increase | 55 | $1,630 | 122 | $2,997 |
| Class R6 shares | ||||
| Sold | 1,073,114 | $33,951,792 | 894,840 | $23,215,674 |
| Distributions reinvested | 11,062 | 345,123 | 115,861 | 2,682,185 |
| Repurchased | (725,757) | (22,785,655) | (814,879) | (20,902,274) |
| Net increase | 358,419 | $11,511,260 | 195,822 | $4,995,585 |
| Total net increase | 3,987,782 | $122,430,237 | 461,686 | $14,058,030 |
Affiliates of the fund owned 78% and
15% of shares of Class R4 and Class R6, respectively, on July 31, 2024. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
| | JOHN HANCOCK Fundamental All Cap Core Fund | 20 |
Note 6—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments, amounted to $165,637,275 and $48,261,350, respectively, for the year ended July 31, 2024.
Note 7—Industry or sector risk
The fund may invest a large
percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of
the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry
or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors
affecting those industries or sectors.
Note 8—Investment in affiliated underlying funds
The fund may invest in affiliated
underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital
gains earned by the fund, if any, is as follows:
| Dividends and distributions | |||||||||
| Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
| John Hancock Collateral Trust | 966,271 | $4,811,553 | $168,355,446 | $(163,508,793) | $1,571 | $2,834 | $571,607 | — | $9,662,611 |
| 21 | JOHN HANCOCK Fundamental All Cap Core Fund | |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Funds II and Shareholders of John Hancock Fundamental All Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities, including the fund’s investments, of John Hancock Fundamental All Cap Core Fund (the "Fund") as of July 31, 2024, the related statement of operations for the year ended July
31, 2024, the statements of changes in net assets for each of the two years in the period ended July 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended
July 31, 2024 (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 July 31,
2024, 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 July 31, 2024 and the financial highlights for each of the five years in the
period ended July 31, 2024 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 July 31, 2024 by correspondence with the custodian and transfer agent. We believe that our audits
provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 12, 2024
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 22 |
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 July 31, 2024.
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 2024 Form 1099-DIV in early 2025. This will reflect the tax character of all distributions paid in calendar year 2024.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
| 23 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | |
EVALUATION OF ADVISORY AND
SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the
evaluation by the Board of Trustees (the Board) of John Hancock Funds II (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory
Agreement (the Subadvisory Agreement) with Manulife Investment Management (US) LLC (the Subadvisor) for John Hancock Fundamental All Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are
collectively referred to as the Agreements. Prior to the June 24-27, 2024 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the
Agreements at the meeting held on May 28 – May 30, 2024. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the 1940 Act)
(the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory
Agreements
At meetings held on June 24-27,
2024, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the 1940 Act, reapproved for an annual period the continuation of the Advisory
Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory
Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense
information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative
performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and
the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor.
At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses,
and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with
management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly
performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in
connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest.
The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the
Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board
asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout
the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed
the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
| | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 24 |
Approval of Advisory Agreement
In approving the Advisory Agreement
with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends
prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The
Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations
throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the
Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV.
The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established
pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including
maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity risk management programs, derivatives risk management programs, and cybersecurity programs, had expanded
over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to,
general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board
also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment,
operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent,
and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through
Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John
Hancock Fund Complex).
In the course of their deliberations
regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
| 25 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | |
| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor
may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with
the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found
the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance
comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the one-, three-, five-and ten-year periods ended December 31, 2023. The Board also
noted that the fund outperformed its peer group median for the one-, three-, five- and ten-year periods ended December 31, 2023. The Board took into account management’s discussion of the fund’s
performance, including the favorable performance relative to the benchmark index and peer group median for the one-,three-, five- and ten-year periods. The Board concluded that the fund’s performance has
generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net
management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality
of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent
third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees
include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are lower than the peer group median.
The Board also took into account
management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each
case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that
management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the
fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual
management fee schedule that reduces management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory
affiliates to other
| | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 26 |
clients (including other funds in the John Hancock
Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable
clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor’s
relationship with the Trust, the Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
| (i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
| (k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board
concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the
Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or |
| 27 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | |
| otherwise reimburse the expenses of the participating portfolios (the reimbursement). 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; | |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with
respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
Nature, extent, and quality of services.
With respect to the services
provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past
year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the
Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide
services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and
monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and
amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational
and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same,
which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial
condition of the Subadvisor.
The Board considered the
Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is
consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance
controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft
dollars.
| | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 28 |
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the
Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the
Subadvisory Agreement.
In addition, the Board considered
other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to
additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the
fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the
extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor
with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance.
As noted above, the Board considered
the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled
meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus
on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to
approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory agreement; and |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
***
Based on the Board’s
evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the
Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement
for an additional one-year period.
| 29 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | |
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.
John Hancock Investment Management
Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116, 800-225-5291, jhinvestments.com
200 Berkeley Street, Boston, MA 02116, 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 Fundamental All Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
| MF3743804 | 376A 7/24 |
9/24
John Hancock
Multi-Asset Absolute Return Fund
Table of contents
| 1 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | |
Fund’s investments
AS OF
7-31-24
| Shares | Value | ||||
| Common stocks 88.5% | $294,609,949 | ||||
| (Cost $217,438,748) | |||||
| Brazil 0.4% | 1,405,615 | ||||
| Ambev SA | 250,100 | 512,037 | |||
| Cia de Saneamento Basico do Estado de Sao Paulo | 6,200 | 96,724 | |||
| Cia de Saneamento Basico do Estado de Sao Paulo, ADR | 4,480 | 70,022 | |||
| CPFL Energia SA | 24,800 | 142,412 | |||
| Hypera SA | 59,400 | 302,453 | |||
| M Dias Branco SA | 59,200 | 281,967 | |||
| Canada 0.2% | 702,718 | ||||
| The Toronto-Dominion Bank | 11,900 | 702,718 | |||
| China 1.7% | 5,535,406 | ||||
| Alibaba Group Holding, Ltd., ADR | 8,111 | 639,552 | |||
| Baidu, Inc., ADR (A) | 2,603 | 230,548 | |||
| China Construction Bank Corp., H Shares | 759,000 | 529,999 | |||
| China Longyuan Power Group Corp., Ltd., H Shares | 459,000 | 411,566 | |||
| China Railway Group, Ltd., H Shares | 64,000 | 31,210 | |||
| China Resources Sanjiu Medical & Pharmaceutical Company, Ltd., Class A | 13,362 | 76,335 | |||
| Chinasoft International, Ltd. (A) | 190,000 | 92,588 | |||
| Hengan International Group Company, Ltd. | 13,500 | 42,172 | |||
| Industrial & Commercial Bank of China, Ltd., H Shares | 602,000 | 333,497 | |||
| Inner Mongolia Yili Industrial Group Company, Ltd., Class A | 131,900 | 458,199 | |||
| Meituan, Class B (A)(B) | 550 | 7,616 | |||
| Midea Group Company, Ltd., Class A | 26,900 | 237,244 | |||
| Ming Yang Smart Energy Group, Ltd., Class A | 195,725 | 269,870 | |||
| NetEase, Inc., ADR | 3,387 | 311,977 | |||
| PICC Property & Casualty Company, Ltd., H Shares | 84,000 | 110,151 | |||
| Ping An Insurance Group Company of China, Ltd., H Shares | 108,000 | 469,003 | |||
| Shandong Weigao Group Medical Polymer Company, Ltd., H Shares | 81,600 | 41,406 | |||
| Sinopharm Group Company, Ltd., H Shares | 206,400 | 484,120 | |||
| Tencent Holdings, Ltd. | 8,300 | 383,016 | |||
| Tianhe Chemicals Group, Ltd. (A)(B)(C) | 4,848,409 | 0 | |||
| Titan Wind Energy Suzhou Company, Ltd., Class A | 41,697 | 49,210 | |||
| Vipshop Holdings, Ltd., ADR | 7,524 | 102,627 | |||
| Wuliangye Yibin Company, Ltd., Class A | 6,900 | 121,228 | |||
| Yum China Holdings, Inc. | 3,382 | 102,272 | |||
| Denmark 2.0% | 6,846,438 | ||||
| Novo Nordisk A/S, Class B | 51,674 | 6,846,438 | |||
| France 1.9% | 6,487,443 | ||||
| LVMH Moet Hennessy Louis Vuitton SE | 1,567 | 1,105,304 | |||
| Sanofi | 21,499 | 2,216,389 | |||
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 2 |
| Shares | Value | ||||
| France (continued) | |||||
| Vinci SA | 27,741 | $3,165,750 | |||
| Germany 1.5% | 4,950,409 | ||||
| Allianz SE | 8,085 | 2,277,267 | |||
| Deutsche Telekom AG | 102,194 | 2,673,142 | |||
| Hong Kong 0.1% | 203,258 | ||||
| China Metal Recycling Holdings, Ltd. (A)(C) | 1,799,400 | 0 | |||
| China Resources Land, Ltd. | 68,000 | 203,258 | |||
| Hungary 0.0% | 5,788 | ||||
| Richter Gedeon NYRT | 203 | 5,788 | |||
| Indonesia 0.2% | 551,071 | ||||
| Telkom Indonesia Persero Tbk PT | 3,102,800 | 551,071 | |||
| Ireland 1.9% | 6,421,472 | ||||
| Accenture PLC, Class A | 16,482 | 5,449,279 | |||
| Medtronic PLC | 12,104 | 972,193 | |||
| Israel 0.6% | 1,980,526 | ||||
| Check Point Software Technologies, Ltd. (A) | 10,796 | 1,980,526 | |||
| Japan 1.3% | 4,502,518 | ||||
| Hoya Corp. | 12,100 | 1,516,140 | |||
| KDDI Corp. | 46,600 | 1,402,195 | |||
| Nippon Telegraph & Telephone Corp. | 1,486,500 | 1,584,183 | |||
| Mexico 0.4% | 1,190,312 | ||||
| Arca Continental SAB de CV | 23,200 | 228,588 | |||
| Coca-Cola Femsa SAB de CV | 14,345 | 129,614 | |||
| Fomento Economico Mexicano SAB de CV | 10,300 | 113,626 | |||
| Grupo Financiero Banorte SAB de CV, Series O | 40,600 | 304,887 | |||
| Kimberly-Clark de Mexico SAB de CV, Class A | 232,100 | 413,597 | |||
| Netherlands 0.2% | 604,354 | ||||
| Prosus NV (A) | 17,325 | 604,354 | |||
| Philippines 0.0% | 35,703 | ||||
| PLDT, Inc. | 1,375 | 35,703 | |||
| South Africa 0.2% | 752,064 | ||||
| Naspers, Ltd., N Shares | 2,267 | 438,656 | |||
| Nedbank Group, Ltd. | 6,055 | 92,730 | |||
| Standard Bank Group, Ltd. | 18,106 | 220,678 | |||
| South Korea 1.4% | 4,536,675 | ||||
| Cheil Worldwide, Inc. | 8,375 | 108,440 | |||
| DB Insurance Company, Ltd. | 516 | 41,691 | |||
| Hyundai Glovis Company, Ltd. | 3,988 | 354,963 | |||
| 3 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
| Shares | Value | ||||
| South Korea (continued) | |||||
| Hyundai Mobis Company, Ltd. | 1,314 | $212,592 | |||
| LG Corp. | 786 | 50,125 | |||
| NongShim Company, Ltd. | 615 | 216,387 | |||
| Samsung Electronics Company, Ltd. | 19,711 | 1,215,425 | |||
| Samsung Fire & Marine Insurance Company, Ltd. | 2,954 | 803,279 | |||
| Samsung SDS Company, Ltd. | 4,070 | 440,419 | |||
| SK Square Company, Ltd. (A) | 2,378 | 150,835 | |||
| SK Telecom Company, Ltd. | 21,877 | 865,651 | |||
| SK Telecom Company, Ltd., ADR | 3,427 | 76,868 | |||
| Spain 1.1% | 3,577,815 | ||||
| Iberdrola SA | 270,878 | 3,577,815 | |||
| Switzerland 0.9% | 2,937,440 | ||||
| Chubb, Ltd. | 3,559 | 981,074 | |||
| Nestle SA | 19,314 | 1,956,366 | |||
| Taiwan 1.7% | 5,549,869 | ||||
| Hon Hai Precision Industry Company, Ltd. | 39,000 | 239,262 | |||
| Sinbon Electronics Company, Ltd. | 12,000 | 120,609 | |||
| Taiwan Semiconductor Manufacturing Company, Ltd. | 74,000 | 2,158,677 | |||
| Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 18,283 | 3,031,321 | |||
| Thailand 0.1% | 454,430 | ||||
| Advanced Info Service PCL | 8,700 | 57,180 | |||
| Bangkok Bank PCL | 12,300 | 47,290 | |||
| Thai Beverage PCL | 248,900 | 93,992 | |||
| Thai Union Group PCL | 628,400 | 255,968 | |||
| United Kingdom 2.8% | 9,375,316 | ||||
| Diageo PLC | 108,032 | 3,361,402 | |||
| Reckitt Benckiser Group PLC | 42,429 | 2,282,402 | |||
| Rightmove PLC | 67,441 | 501,075 | |||
| St. James’s Place PLC | 198,218 | 1,746,050 | |||
| Unilever PLC | 24,229 | 1,484,387 | |||
| United States 67.9% | 226,003,309 | ||||
| Adobe, Inc. (A) | 9,013 | 4,972,021 | |||
| Advanced Micro Devices, Inc. (A) | 10,440 | 1,508,371 | |||
| Air Products & Chemicals, Inc. | 7,299 | 1,925,841 | |||
| Akamai Technologies, Inc. (A) | 22,451 | 2,206,484 | |||
| Alphabet, Inc., Class A | 82,841 | 14,210,542 | |||
| American Electric Power Company, Inc. | 15,426 | 1,513,599 | |||
| Automatic Data Processing, Inc. | 33,180 | 8,713,732 | |||
| AutoZone, Inc. (A) | 1,823 | 5,712,717 | |||
| Baxter International, Inc. | 18,876 | 676,138 | |||
| Becton, Dickinson and Company | 17,333 | 4,178,293 | |||
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 4 |
| Shares | Value | ||||
| United States (continued) | |||||
| Booking Holdings, Inc. | 698 | $2,593,077 | |||
| Bristol-Myers Squibb Company | 20,491 | 974,552 | |||
| Cadence Design Systems, Inc. (A) | 12,822 | 3,431,937 | |||
| Centene Corp. (A) | 19,858 | 1,527,477 | |||
| Cisco Systems, Inc. | 96,321 | 4,666,752 | |||
| Colgate-Palmolive Company | 37,777 | 3,747,101 | |||
| Comcast Corp., Class A | 86,089 | 3,552,893 | |||
| Conagra Brands, Inc. | 50,487 | 1,530,766 | |||
| CVS Health Corp. | 46,968 | 2,833,579 | |||
| Duke Energy Corp. | 4,399 | 480,679 | |||
| eBay, Inc. | 80,311 | 4,466,095 | |||
| Elevance Health, Inc. | 9,700 | 5,160,691 | |||
| Emerson Electric Company | 9,928 | 1,162,668 | |||
| Eversource Energy | 14,097 | 915,036 | |||
| Fiserv, Inc. (A) | 12,697 | 2,076,848 | |||
| Fortinet, Inc. (A) | 94,866 | 5,506,023 | |||
| General Mills, Inc. | 8,734 | 586,401 | |||
| Global Payments, Inc. | 25,068 | 2,547,912 | |||
| Globe Life, Inc. | 5,568 | 516,376 | |||
| Intuit, Inc. | 708 | 458,324 | |||
| Johnson & Johnson | 39,671 | 6,262,067 | |||
| Kenvue, Inc. | 65,132 | 1,204,291 | |||
| Labcorp Holdings, Inc. | 11,991 | 2,583,341 | |||
| Marsh & McLennan Companies, Inc. | 17,839 | 3,970,426 | |||
| Mastercard, Inc., Class A | 11,436 | 5,302,988 | |||
| McDonald’s Corp. | 13,910 | 3,691,714 | |||
| Merck & Company, Inc. | 9,636 | 1,090,121 | |||
| Meta Platforms, Inc., Class A | 5,507 | 2,614,889 | |||
| Microsoft Corp. | 29,883 | 12,501,553 | |||
| Mondelez International, Inc., Class A | 48,617 | 3,322,972 | |||
| Monster Beverage Corp. (A) | 96,505 | 4,965,182 | |||
| MSCI, Inc. | 11,059 | 5,980,265 | |||
| NextEra Energy, Inc. | 22,109 | 1,688,907 | |||
| NIKE, Inc., Class B | 60,450 | 4,525,287 | |||
| NVIDIA Corp. | 7,848 | 918,373 | |||
| Oracle Corp. | 18,464 | 2,574,805 | |||
| O’Reilly Automotive, Inc. (A) | 929 | 1,046,370 | |||
| Paychex, Inc. | 17,547 | 2,246,367 | |||
| PayPal Holdings, Inc. (A) | 17,369 | 1,142,533 | |||
| PepsiCo, Inc. | 36,508 | 6,303,836 | |||
| Pfizer, Inc. | 23,386 | 714,208 | |||
| Ross Stores, Inc. | 17,974 | 2,574,416 | |||
| Sempra | 10,271 | 822,296 | |||
| Starbucks Corp. | 69,579 | 5,423,683 | |||
| 5 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
| Shares | Value | ||||
| United States (continued) | |||||
| Stryker Corp. | 6,632 | $2,171,648 | |||
| Synopsys, Inc. (A) | 3,360 | 1,875,955 | |||
| Sysco Corp. | 16,078 | 1,232,379 | |||
| Texas Roadhouse, Inc. | 26,720 | 4,665,579 | |||
| The Cigna Group | 13,341 | 4,651,606 | |||
| The Coca-Cola Company | 105,348 | 7,030,926 | |||
| The Hershey Company | 8,416 | 1,661,992 | |||
| The J.M. Smucker Company | 2,828 | 333,563 | |||
| The Procter & Gamble Company | 22,136 | 3,558,583 | |||
| The TJX Companies, Inc. | 30,090 | 3,400,772 | |||
| The Toro Company | 22,375 | 2,141,959 | |||
| UnitedHealth Group, Inc. | 4,013 | 2,312,130 | |||
| Verizon Communications, Inc. | 38,407 | 1,556,252 | |||
| Visa, Inc., Class A | 26,634 | 7,075,855 | |||
| W.W. Grainger, Inc. | 2,280 | 2,227,127 | |||
| Waste Management, Inc. | 11,266 | 2,283,168 | |||
| Rate (%) | Maturity date | Par value^ | Value | ||
| U.S. Government and Agency obligations 2.9% | $9,508,787 | ||||
| (Cost $9,196,880) | |||||
| U.S. Government 2.9% | 9,508,787 | ||||
| U.S. Treasury | |||||
| Note | 0.625 | 05-15-30 | 359,200 | 297,799 | |
| Note | 0.625 | 08-15-30 | 681,400 | 560,478 | |
| Note (D) | 0.875 | 11-15-30 | 716,100 | 594,671 | |
| Note | 1.250 | 08-15-31 | 650,800 | 542,681 | |
| Note | 1.625 | 05-15-31 | 780,800 | 672,861 | |
| Note | 1.750 | 11-15-29 | 336,700 | 302,215 | |
| Note (D) | 1.875 | 02-15-32 | 1,272,600 | 1,097,816 | |
| Note | 2.875 | 05-15-32 | 903,900 | 835,966 | |
| Note | 3.375 | 05-15-33 | 633,200 | 602,282 | |
| Note | 3.500 | 02-15-33 | 285,600 | 274,600 | |
| Note | 4.000 | 02-15-34 | 1,527,000 | 1,520,558 | |
| Note (D) | 4.125 | 11-15-32 | 970,900 | 978,333 | |
| Note | 4.500 | 11-15-33 | 1,187,700 | 1,228,527 | |
| Foreign government obligations 0.0% | $154,562 | ||||
| (Cost $149,629) | |||||
| France 0.0% | 154,562 | ||||
| Caisse Francaise de Financement Local | |||||
| Bond | 0.010 | 10-19-35 | EUR | 200,000 | 154,562 |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 6 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Corporate bonds 3.4% | $11,169,689 | ||||
| (Cost $11,364,786) | |||||
| Australia 0.0% | 110,202 | ||||
| Bendigo & Adelaide Bank, Ltd. | 4.020 | 10-04-26 | EUR | 100,000 | 110,202 |
| Austria 0.1% | 186,528 | ||||
| Erste Group Bank AG | 0.010 | 09-11-29 | EUR | 200,000 | 186,528 |
| Canada 0.0% | 98,398 | ||||
| Federation des Caisses Desjardins du Quebec | 0.050 | 11-26-27 | EUR | 100,000 | 98,398 |
| Denmark 2.5% | 8,244,150 | ||||
| Nykredit Realkredit A/S | 1.000 | 07-01-25 | DKK | 3,900,000 | 555,261 |
| Nykredit Realkredit A/S | 2.500 | 10-01-53 | DKK | 1,509,453 | 196,664 |
| Nykredit Realkredit A/S | 4.000 | 10-01-53 | DKK | 15,492,334 | 2,233,368 |
| Nykredit Realkredit A/S | 5.000 | 10-01-53 | DKK | 2,362,351 | 347,235 |
| Nykredit Realkredit A/S | 5.000 | 10-01-53 | DKK | 12,310,421 | 1,813,219 |
| Realkredit Danmark A/S | 1.000 | 04-01-26 | DKK | 7,300,000 | 1,027,930 |
| Realkredit Danmark A/S | 1.500 | 10-01-53 | DKK | 17,605,826 | 2,070,473 |
| France 0.6% | 1,830,639 | ||||
| AXA Home Loan SFH SA | 0.010 | 10-16-29 | EUR | 900,000 | 839,043 |
| BPCE SFH SA | 0.010 | 01-21-27 | EUR | 800,000 | 806,049 |
| BPCE SFH SA | 0.625 | 05-29-31 | EUR | 200,000 | 185,547 |
| Japan 0.0% | 93,683 | ||||
| Sumitomo Mitsui Banking Corp. | 0.409 | 11-07-29 | EUR | 100,000 | 93,683 |
| New Zealand 0.1% | 178,855 | ||||
| ASB Bank, Ltd. | 0.250 | 05-21-31 | EUR | 200,000 | 178,855 |
| United Kingdom 0.1% | 427,234 | ||||
| Santander UK PLC | 0.500 | 01-10-25 | EUR | 400,000 | 427,234 |
| Total investments (Cost $238,150,043) 94.8% | $315,442,987 | ||||
| Other assets and liabilities, net 5.2% | 17,411,422 | ||||
| Total net assets 100.0% | $332,854,409 | ||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
| ^All par values are denominated in U.S. dollars unless otherwise indicated. | |
| Currency Abbreviations | |
| DKK | Danish Krone |
| EUR | Euro |
| Security Abbreviations and Legend | |
| ADR | American Depositary Receipt |
| (A) | Non-income producing security. |
| 7 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
| (B) | This security is exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
| (C) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
| (D) | All or a portion of this security is segregated at the custodian as collateral for certain derivatives. |
The fund had the following portfolio
composition as a percentage of net assets on 7-31-24:
| Common stocks | 88.5% |
| Information technology | 16.6% |
| Consumer staples | 14.5% |
| Health care | 14.2% |
| Consumer discretionary | 12.4% |
| Financials | 11.2% |
| Communication services | 9.4% |
| Industrials | 6.8% |
| Utilities | 2.7% |
| Materials | 0.6% |
| Real estate | 0.1% |
| Corporate bonds | 3.4% |
| U.S. Government and Agency obligations | 2.9% |
| Other assets and liabilities, net | 5.2% |
| TOTAL | 100.0% |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 8 |
DERIVATIVES
FUTURES
| Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
| 10-Year U.S. Treasury Note Futures | 352 | Long | Sep 2024 | $38,536,167 | $39,501,000 | $964,833 |
| 2-Year U.S. Treasury Note Futures | 151 | Long | Oct 2024 | 30,788,293 | 31,054,094 | 265,801 |
| 5-Year U.S. Treasury Note Futures | 820 | Long | Oct 2024 | 87,023,537 | 88,739,375 | 1,715,838 |
| ASX SPI 200 Index Futures | 34 | Short | Sep 2024 | (4,288,706) | (4,486,323) | (197,617) |
| Euro STOXX 50 Index Futures | 201 | Short | Sep 2024 | (10,746,553) | (10,663,442) | 83,111 |
| Euro-Bund Futures | 92 | Short | Sep 2024 | (12,929,685) | (13,344,978) | (415,293) |
| FTSE 100 Index Futures | 66 | Short | Sep 2024 | (6,979,690) | (7,103,306) | (123,616) |
| Mini MSCI Emerging Markets Index Futures | 184 | Short | Sep 2024 | (10,011,247) | (10,084,120) | (72,873) |
| Nikkei 225 Mini Index Futures | 494 | Short | Sep 2024 | (12,845,579) | (12,748,600) | 96,979 |
| S&P 500 E-Mini Index Futures | 169 | Short | Sep 2024 | (46,502,092) | (46,965,100) | (463,008) |
| S&P Mid 400 E-Mini Index Futures | 46 | Short | Sep 2024 | (13,644,858) | (14,352,460) | (707,602) |
| $1,146,553 |
^ Notional basis refers to the
contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
FORWARD FOREIGN CURRENCY CONTRACTS
| Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
| AUD | 644,000 | CAD | 585,390 | BARC | 8/15/2024 | — | $(2,868) |
| AUD | 507,000 | JPY | 53,423,741 | BARC | 8/15/2024 | — | (25,683) |
| AUD | 2,566,000 | JPY | 276,329,346 | GSI | 8/15/2024 | — | (169,748) |
| AUD | 88,000 | JPY | 9,556,442 | JPM | 8/15/2024 | — | (6,355) |
| AUD | 270,000 | NOK | 1,895,183 | GSI | 8/15/2024 | $2,870 | — |
| AUD | 1,869,000 | SEK | 13,291,928 | BOA | 8/15/2024 | — | (19,365) |
| AUD | 322,849 | USD | 213,121 | BARC | 8/15/2024 | — | (1,917) |
| AUD | 1,667,238 | USD | 1,101,491 | BNP | 8/15/2024 | — | (10,802) |
| AUD | 605,935 | USD | 404,894 | BOA | 8/15/2024 | — | (8,498) |
| AUD | 697,991 | USD | 466,971 | GSI | 8/15/2024 | — | (10,353) |
| AUD | 246,746 | USD | 165,113 | JPM | 8/15/2024 | — | (3,694) |
| CAD | 2,075,000 | CHF | 1,365,831 | BOA | 8/15/2024 | — | (55,044) |
| CAD | 2,438,313 | EUR | 1,655,000 | GSI | 8/15/2024 | — | (25,510) |
| CAD | 561,000 | GBP | 321,000 | BARC | 8/15/2024 | — | (6,225) |
| CAD | 1,125,929 | GBP | 650,000 | GSI | 8/15/2024 | — | (19,888) |
| CAD | 38,000 | JPY | 4,330,026 | GSI | 8/14/2024 | — | (1,426) |
| CAD | 741,789 | NZD | 893,000 | BNP | 8/15/2024 | 6,006 | — |
| CAD | 3,887,161 | USD | 2,833,500 | BARC | 8/14/2024 | — | (17,003) |
| CAD | 3,013,341 | USD | 2,205,000 | BNP | 8/14/2024 | — | (21,642) |
| CAD | 2,289,221 | USD | 1,680,000 | BOA | 8/14/2024 | — | (21,313) |
| CAD | 3,319,346 | USD | 2,428,500 | GSI | 8/14/2024 | — | (23,421) |
| CAD | 174,912 | USD | 127,825 | BARC | 8/15/2024 | — | (1,087) |
| 9 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
FORWARD
FOREIGN CURRENCY CONTRACTS (continued)
| Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
| CAD | 1,320 | USD | 968 | BNP | 8/15/2024 | — | $(11) |
| CAD | 9,920 | USD | 7,289 | BOA | 8/15/2024 | — | (101) |
| CAD | 136,792 | USD | 99,810 | GSI | 8/15/2024 | — | (692) |
| CHF | 664,037 | EUR | 688,500 | BARC | 8/15/2024 | $12,128 | — |
| CHF | 660,863 | EUR | 688,500 | BNP | 8/15/2024 | 8,506 | — |
| CHF | 587,438 | USD | 658,766 | BARC | 8/15/2024 | 11,564 | — |
| CHF | 4,673,678 | USD | 5,209,472 | BNP | 8/15/2024 | 123,696 | — |
| CHF | 506,907 | USD | 572,794 | BOA | 8/15/2024 | 5,641 | — |
| CHF | 292,081 | USD | 329,983 | GSI | 8/15/2024 | 3,313 | — |
| CHF | 86,402 | USD | 98,493 | JPM | 8/15/2024 | 101 | — |
| DKK | 3,091,921 | USD | 447,464 | BARC | 8/15/2024 | 1,292 | — |
| DKK | 2,436,582 | USD | 352,433 | BNP | 8/15/2024 | 1,208 | — |
| DKK | 14,704,983 | USD | 2,142,834 | BOA | 8/15/2024 | — | (8,580) |
| DKK | 6,578,370 | USD | 946,277 | GSI | 8/15/2024 | 8,496 | — |
| DKK | 1,097,960 | USD | 158,095 | JPM | 8/15/2024 | 1,261 | — |
| EUR | 61,000 | CHF | 59,460 | BARC | 8/15/2024 | — | (1,790) |
| EUR | 42,000 | CHF | 41,247 | BOA | 8/15/2024 | — | (1,584) |
| EUR | 66,000 | CHF | 64,082 | JPM | 8/15/2024 | — | (1,650) |
| EUR | 216,000 | GBP | 182,985 | GSI | 8/15/2024 | — | (1,352) |
| EUR | 80,000 | JPY | 13,368,591 | BARC | 8/15/2024 | — | (2,788) |
| EUR | 194,000 | JPY | 33,294,536 | BOA | 8/15/2024 | — | (12,619) |
| EUR | 419,000 | JPY | 70,362,469 | GSI | 8/15/2024 | — | (16,907) |
| EUR | 89,000 | NZD | 160,235 | BARC | 8/15/2024 | 1,016 | — |
| EUR | 1,415,274 | USD | 1,520,161 | BARC | 8/15/2024 | 12,507 | — |
| EUR | 11,237,265 | USD | 12,166,252 | BNP | 8/15/2024 | 3,116 | — |
| EUR | 4,458,752 | USD | 4,836,222 | BOA | 8/15/2024 | — | (7,627) |
| EUR | 642,000 | USD | 698,527 | GSI | 8/15/2024 | — | (3,275) |
| EUR | 1,550,000 | USD | 1,667,890 | JPM | 8/15/2024 | 10,679 | — |
| GBP | 301,000 | CAD | 521,722 | JPM | 8/15/2024 | 8,970 | — |
| GBP | 728,243 | EUR | 862,500 | BARC | 8/15/2024 | 2,278 | — |
| GBP | 188,407 | EUR | 223,000 | BOA | 8/15/2024 | 742 | — |
| GBP | 731,142 | EUR | 862,500 | GSI | 8/15/2024 | 6,006 | — |
| GBP | 305,226 | EUR | 360,000 | JPM | 8/15/2024 | 2,575 | — |
| GBP | 42,000 | JPY | 8,099,172 | BARC | 8/15/2024 | — | (176) |
| GBP | 109,000 | JPY | 21,312,703 | GSI | 8/15/2024 | — | (2,419) |
| GBP | 775,000 | SEK | 10,368,689 | GSI | 8/15/2024 | 27,550 | — |
| GBP | 706,175 | USD | 901,064 | BARC | 8/15/2024 | 6,882 | — |
| GBP | 342,964 | USD | 435,206 | BNP | 8/15/2024 | 5,751 | — |
| GBP | 690,252 | USD | 878,371 | BOA | 8/15/2024 | 9,103 | — |
| GBP | 120,694 | USD | 153,342 | GSI | 8/15/2024 | 1,838 | — |
| GBP | 359,356 | USD | 456,765 | JPM | 8/15/2024 | 5,268 | — |
| JPY | 49,112,783 | AUD | 489,000 | BARC | 8/15/2024 | 8,622 | — |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 10 |
FORWARD
FOREIGN CURRENCY CONTRACTS (continued)
| Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
| JPY | 18,002,283 | AUD | 176,000 | BOA | 8/15/2024 | $5,282 | — |
| JPY | 16,516,488 | EUR | 97,000 | BARC | 8/15/2024 | 5,435 | — |
| JPY | 26,321,136 | EUR | 157,000 | BNP | 8/15/2024 | 6,042 | — |
| JPY | 31,879,273 | EUR | 191,000 | GSI | 8/15/2024 | 6,401 | — |
| JPY | 35,428,672 | EUR | 209,000 | JPM | 8/15/2024 | 10,650 | — |
| JPY | 4,256,859 | GBP | 22,000 | BARC | 8/15/2024 | 189 | — |
| JPY | 31,887,358 | NOK | 2,228,000 | BOA | 8/15/2024 | 9,022 | — |
| JPY | 17,070,247 | NOK | 1,222,000 | GSI | 8/15/2024 | 2,145 | — |
| JPY | 16,923,989 | NZD | 175,000 | JPM | 8/15/2024 | 9,052 | — |
| JPY | 278,415,617 | USD | 1,793,591 | BARC | 8/15/2024 | 68,762 | — |
| JPY | 8,840,277,679 | USD | 57,496,570 | BNP | 8/15/2024 | 1,636,984 | — |
| JPY | 334,489,459 | USD | 2,167,101 | BOA | 8/15/2024 | 70,335 | — |
| JPY | 212,767,136 | USD | 1,363,778 | GSI | 8/15/2024 | 59,444 | — |
| JPY | 214,741,945 | USD | 1,345,320 | JPM | 8/15/2024 | 91,112 | — |
| NOK | 675,008 | EUR | 59,000 | BOA | 8/15/2024 | — | $(2,005) |
| NOK | 11,009,068 | NZD | 1,682,000 | BARC | 8/15/2024 | 8,303 | — |
| NOK | 2,890,000 | SEK | 2,836,570 | BARC | 8/15/2024 | — | (88) |
| NOK | 9,124,212 | USD | 861,500 | BARC | 8/15/2024 | — | (24,941) |
| NOK | 9,047,015 | USD | 861,500 | BOA | 8/15/2024 | — | (32,019) |
| NOK | 18,640,260 | USD | 1,726,000 | GSI | 8/15/2024 | — | (16,957) |
| NZD | 787,000 | CAD | 639,994 | BARC | 8/15/2024 | 4,665 | — |
| NZD | 3,542 | EUR | 2,000 | BARC | 8/15/2024 | — | (58) |
| NZD | 1,478,000 | JPY | 144,657,934 | BARC | 8/15/2024 | — | (87,976) |
| NZD | 42,000 | NOK | 273,158 | BARC | 8/15/2024 | — | (48) |
| NZD | 216,000 | NOK | 1,394,985 | BOA | 8/15/2024 | 656 | — |
| NZD | 131,000 | NOK | 846,997 | GSI | 8/15/2024 | 309 | — |
| NZD | 494,000 | SEK | 3,174,174 | BOA | 8/15/2024 | — | (2,594) |
| NZD | 2,086,000 | SEK | 13,419,632 | JPM | 8/15/2024 | — | (12,460) |
| NZD | 559,000 | USD | 342,294 | BARC | 8/15/2024 | — | (9,596) |
| NZD | 290,000 | USD | 177,476 | GSI | 8/15/2024 | — | (4,878) |
| SEK | 11,838,943 | AUD | 1,707,000 | BARC | 8/15/2024 | — | (10,428) |
| SEK | 6,819,663 | AUD | 952,000 | BNP | 8/15/2024 | 14,465 | — |
| SEK | 5,588,053 | AUD | 787,000 | GSI | 8/15/2024 | 7,321 | — |
| SEK | 731,888 | EUR | 65,000 | BARC | 8/15/2024 | — | (2,001) |
| SEK | 959,171 | GBP | 72,000 | BARC | 8/15/2024 | — | (2,944) |
| SEK | 459,000 | JPY | 6,707,683 | BARC | 8/14/2024 | — | (1,973) |
| SEK | 716,000 | JPY | 10,386,523 | BNP | 8/14/2024 | — | (2,564) |
| SEK | 2,673,944 | NOK | 2,686,000 | BNP | 8/15/2024 | 3,595 | — |
| SEK | 8,361,773 | NZD | 1,305,000 | GSI | 8/15/2024 | 4,661 | — |
| SEK | 3,980,731 | USD | 379,000 | BOA | 8/15/2024 | — | (7,027) |
| SEK | 4,731,412 | USD | 438,000 | GSI | 8/15/2024 | 4,120 | — |
| USD | 336,606 | AUD | 508,693 | BARC | 8/15/2024 | 3,824 | — |
| 11 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
FORWARD
FOREIGN CURRENCY CONTRACTS (continued)
| Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
| USD | 21,419,348 | AUD | 32,350,669 | BNP | 8/15/2024 | $255,904 | — |
| USD | 86,794 | AUD | 129,100 | BOA | 8/15/2024 | 2,338 | — |
| USD | 753,343 | AUD | 1,133,384 | GSI | 8/15/2024 | 11,895 | — |
| USD | 52,257 | AUD | 77,350 | JPM | 8/15/2024 | 1,655 | — |
| USD | 17,727,417 | CAD | 24,196,489 | BOA | 8/14/2024 | 195,515 | — |
| USD | 4,278,311 | CAD | 5,842,545 | GSI | 8/14/2024 | 45,014 | — |
| USD | 61,243 | CAD | 83,860 | BARC | 8/15/2024 | 479 | — |
| USD | 889 | CAD | 1,215 | BNP | 8/15/2024 | 9 | — |
| USD | 879,868 | CAD | 1,201,496 | GSI | 8/15/2024 | 9,281 | — |
| USD | 14,373 | CAD | 19,635 | JPM | 8/15/2024 | 146 | — |
| USD | 104,215 | CHF | 92,638 | BARC | 8/15/2024 | — | $(1,495) |
| USD | 2,836,400 | CHF | 2,544,447 | BNP | 8/15/2024 | — | (67,087) |
| USD | 213,810 | CHF | 191,432 | BOA | 8/15/2024 | — | (4,635) |
| USD | 403,372 | CHF | 359,215 | GSI | 8/15/2024 | — | (6,531) |
| USD | 405,349 | DKK | 2,767,352 | BNP | 8/15/2024 | 3,700 | — |
| USD | 17,543,560 | DKK | 120,825,678 | BOA | 8/15/2024 | 7,147 | — |
| USD | 597,541 | DKK | 4,095,665 | GSI | 8/15/2024 | 3,104 | — |
| USD | 496,495 | DKK | 3,450,392 | JPM | 8/15/2024 | — | (4,288) |
| USD | 1,828,013 | EUR | 1,700,086 | BARC | 8/15/2024 | — | (13,091) |
| USD | 130,204,206 | EUR | 120,289,451 | BNP | 8/15/2024 | — | (62,949) |
| USD | 1,028,058 | EUR | 945,040 | BOA | 8/15/2024 | 4,629 | — |
| USD | 1,180,054 | EUR | 1,087,420 | JPM | 8/15/2024 | 2,435 | — |
| USD | 1,311,326 | GBP | 1,028,354 | BARC | 8/15/2024 | — | (10,854) |
| USD | 16,066,362 | GBP | 12,820,053 | BNP | 8/15/2024 | — | (416,694) |
| USD | 125,642 | GBP | 98,624 | BOA | 8/15/2024 | — | (1,162) |
| USD | 431,512 | GBP | 336,759 | GSI | 8/15/2024 | — | (1,467) |
| USD | 386,544 | GBP | 301,285 | JPM | 8/15/2024 | — | (826) |
| USD | 291,787 | JPY | 44,808,265 | BNP | 8/14/2024 | — | (7,893) |
| USD | 2,192,182 | JPY | 337,790,160 | BARC | 8/15/2024 | — | (67,333) |
| USD | 6,222,658 | JPY | 958,274,099 | BNP | 8/15/2024 | — | (187,339) |
| USD | 858,122 | JPY | 135,277,052 | BOA | 8/15/2024 | — | (46,761) |
| USD | 858,401 | JPY | 133,856,563 | GSI | 8/15/2024 | — | (36,980) |
| USD | 2,162,293 | JPY | 333,874,746 | JPM | 8/15/2024 | — | (71,031) |
| USD | 3,554,449 | NOK | 38,795,641 | BARC | 8/15/2024 | — | (2,553) |
| USD | 280,000 | NOK | 2,974,289 | BNP | 8/15/2024 | 7,301 | — |
| USD | 1,663,000 | NOK | 17,780,069 | BOA | 8/15/2024 | 32,824 | — |
| USD | 9,998,716 | NZD | 16,639,492 | GSI | 8/15/2024 | 95,449 | — |
| USD | 267,955 | SEK | 2,894,531 | GSI | 8/14/2024 | — | (2,506) |
| USD | 7,239,161 | SEK | 78,282,632 | BOA | 8/15/2024 | — | (75,841) |
| $3,010,584 | $(1,823,286) | ||||||
| Derivatives Currency Abbreviations | |
| AUD | Australian Dollar |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 12 |
| CAD | Canadian Dollar |
| CHF | Swiss Franc |
| DKK | Danish Krone |
| EUR | Euro |
| GBP | Pound Sterling |
| JPY | Japanese Yen |
| NOK | Norwegian Krone |
| NZD | New Zealand Dollar |
| SEK | Swedish Krona |
| USD | U.S. Dollar |
| Derivatives Abbreviations | |
| BARC | Barclays Bank PLC |
| BNP | BNP Paribas |
| BOA | Bank of America, N.A. |
| GSI | Goldman Sachs International |
| JPM | JPMorgan Chase Bank, N.A. |
| OTC | Over-the-counter |
At 7-31-24, the aggregate cost of
investments for federal income tax purposes was $248,615,431. Net unrealized appreciation aggregated to $69,161,407, of which $78,780,406 related to gross unrealized appreciation and $9,618,999 related to gross
unrealized depreciation.
See Notes to financial statements
regarding investment transactions and other derivatives information.
| 13 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND
LIABILITIES 7-31-24
| Assets | |
| Unaffiliated investments, at value (Cost $238,150,043) | $315,442,987 |
| Unrealized appreciation on forward foreign currency contracts | 3,010,584 |
| Cash | 5,173,769 |
| Foreign currency, at value (Cost $256,474) | 254,515 |
| Collateral held at broker for futures contracts | 7,666,763 |
| Dividends and interest receivable | 1,071,030 |
| Receivable for fund shares sold | 49,719 |
| Receivable for investments sold | 3,176,562 |
| Other assets | 44,019 |
| Total assets | 335,889,948 |
| Liabilities | |
| Unrealized depreciation on forward foreign currency contracts | 1,823,286 |
| Payable for futures variation margin | 799,164 |
| Payable for investments purchased | 40,829 |
| Payable for fund shares repurchased | 165,884 |
| Payable to affiliates | |
| Accounting and legal services fees | 9,818 |
| Transfer agent fees | 18,365 |
| Distribution and service fees | 138 |
| Trustees’ fees | 666 |
| Other liabilities and accrued expenses | 177,389 |
| Total liabilities | 3,035,539 |
| Net assets | $332,854,409 |
| Net assets consist of | |
| Paid-in capital | $830,278,722 |
| Total distributable earnings (loss) | (497,424,313) |
| Net assets | $332,854,409 |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK Multi-Asset Absolute Return Fund | 14 |
STATEMENT OF ASSETS AND LIABILITIES (continued)
| 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 ($36,650,254 ÷ 3,645,177 shares)1 | $10.05 |
| Class C ($1,871,591 ÷ 195,636 shares)1 | $9.57 |
| Class I ($158,905,787 ÷ 15,478,018 shares) | $10.27 |
| Class R2 ($842,807 ÷ 84,301 shares) | $10.00 |
| Class R6 ($31,361,407 ÷ 3,032,411 shares) | $10.34 |
| Class NAV ($103,222,563 ÷ 9,989,577 shares) | $10.33 |
| Maximum offering price per share | |
| Class A (net asset value per share ÷ 95%)2 | $10.58 |
| 1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| 2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
| 15 | JOHN HANCOCK Multi-Asset Absolute Return Fund | | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENT OF OPERATIONS For the year ended 7-31-24
| Investment income | |
| Dividends | $6,467,412 |
| Interest | 1,591,028 |
| Less foreign taxes withheld | (254,179) |
| Total investment income | 7,804,261 |
| Expenses | |
| Investment management fees | 3,865,200 |
| Distribution and service fees | 157,569 |
| Accounting and legal services fees | 74,339 |
| Transfer agent fees | 267,861 |
| Trustees’ fees | 9,739 |
| Custodian fees | 126,809 |
| State registration fees | 90,979 |
| Printing and postage | 24,970 |
| Professional fees | 202,809 |
| Other | 138,132 |
| Total expenses | 4,958,407 |
| Less expense reductions | (28,867) |
| Net expenses | 4,929,540 |
| Net investment income | 2,874,721 |
| Realized and unrealized gain (loss) | |
| Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 45,112,583 |
| Futures contracts | (28,925,952) |
| Forward foreign currency contracts | (8,719,692) |
| Swap contracts | (33,486) |
| 7,433,453 | |
| Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | (19,706,489) |
| Futures contracts | 13,418,440 |
| Forward foreign currency contracts | 7,473,318 |
| 1,185,269 | |
| Net realized and unrealized gain | 8,618,722 |
| Increase in net assets from operations | $11,493,443 |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK Multi-Asset Absolute Return Fund | 16 |
STATEMENTS OF CHANGES IN NET
ASSETS
| Year ended 7-31-24 | Year ended 7-31-23 | |
| Increase (decrease) in net assets | ||
| From operations | ||
| Net investment income | $2,874,721 | $4,063,284 |
| Net realized gain (loss) | 7,433,453 | (32,340,674) |
| Change in net unrealized appreciation (depreciation) | 1,185,269 | 35,833,618 |
| Increase in net assets resulting from operations | 11,493,443 | 7,556,228 |
| Distributions to shareholders | ||
| From earnings | ||
| Class A | — | (1,282,614) |
| Class C | — | (237,194) |
| Class I | — | (6,362,692) |
| Class R2 | — | (30,090) |
| Class R6 | — | (7,576,544) |
| Class NAV | — | (3,272,596) |
| Total distributions | — | (18,761,730) |
| From fund share transactions | (160,914,483) | (87,852,566) |
| Total decrease | (149,421,040) | (99,058,068) |
| Net assets | ||
| Beginning of year | 482,275,449 | 581,333,517 |
| End of year | $332,854,409 | $482,275,449 |
| 17 | JOHN HANCOCK Multi-Asset Absolute Return Fund | | SEE NOTES TO FINANCIAL STATEMENTS |
Financial highlights
| CLASS A SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $9.75 | $9.93 | $10.12 | $9.06 | $10.54 |
| Net investment income1 | 0.05 | 0.05 | 0.06 | 0.02 | 0.06 |
| Net realized and unrealized gain (loss) on investments | 0.25 | 0.07 | (0.25) | 1.09 | 0.02 |
| Total from investment operations | 0.30 | 0.12 | (0.19) | 1.11 | 0.08 |
| Less distributions | |||||
| From net investment income | — | (0.30) | — | (0.05) | (1.56) |
| Net asset value, end of period | $10.05 | $9.75 | $9.93 | $10.12 | $9.06 |
| Total return (%)2,3 | 3.18 | 1.34 | (1.88) | 12.27 | 0.89 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $37 | $41 | $44 | $45 | $41 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.62 | 1.55 | 1.57 | 1.59 | 1.53 |
| Expenses including reductions | 1.61 | 1.54 | 1.56 | 1.58 | 1.52 |
| Net investment income | 0.47 | 0.49 | 0.65 | 0.24 | 0.65 |
| Portfolio turnover (%) | 47 | 59 | 59 | 57 | 2174 |
| 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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK Multi-Asset Absolute Return Fund | 18 |
| CLASS C SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $9.38 | $9.57 | $9.82 | $8.81 | $10.29 |
| Net investment loss1 | (0.03) | (0.03) | (0.01) | (0.05) | (0.01) |
| Net realized and unrealized gain (loss) on investments | 0.22 | 0.07 | (0.24) | 1.06 | 0.01 |
| Total from investment operations | 0.19 | 0.04 | (0.25) | 1.01 | — |
| Less distributions | |||||
| From net investment income | — | (0.23) | — | — | (1.48) |
| Net asset value, end of period | $9.57 | $9.38 | $9.57 | $9.82 | $8.81 |
| Total return (%)2,3 | 2.45 | 0.63 | (2.54) | 11.45 | 0.23 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $2 | $6 | $12 | $20 | $34 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 2.32 | 2.25 | 2.27 | 2.29 | 2.23 |
| Expenses including reductions | 2.31 | 2.24 | 2.26 | 2.28 | 2.22 |
| Net investment loss | (0.29) | (0.29) | (0.12) | (0.52) | (0.07) |
| Portfolio turnover (%) | 47 | 59 | 59 | 57 | 2174 |
| 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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
| 19 | JOHN HANCOCK Multi-Asset Absolute Return Fund | | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS I SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $9.92 | $10.10 | $10.27 | $9.19 | $10.67 |
| Net investment income1 | 0.08 | 0.08 | 0.10 | 0.05 | 0.09 |
| Net realized and unrealized gain (loss) on investments | 0.27 | 0.07 | (0.27) | 1.10 | 0.02 |
| Total from investment operations | 0.35 | 0.15 | (0.17) | 1.15 | 0.11 |
| Less distributions | |||||
| From net investment income | — | (0.33) | — | (0.07) | (1.59) |
| Net asset value, end of period | $10.27 | $9.92 | $10.10 | $10.27 | $9.19 |
| Total return (%)2 | 3.42 | 1.73 | (1.66) | 12.64 | 1.22 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $159 | $201 | $215 | $215 | $274 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.32 | 1.25 | 1.27 | 1.29 | 1.23 |
| Expenses including reductions | 1.31 | 1.24 | 1.26 | 1.28 | 1.22 |
| Net investment income | 0.76 | 0.79 | 0.94 | 0.52 | 0.95 |
| Portfolio turnover (%) | 47 | 59 | 59 | 57 | 2173 |
| 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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK Multi-Asset Absolute Return Fund | 20 |
| CLASS R2 SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $9.69 | $9.87 | $10.07 | $9.01 | $10.49 |
| Net investment income1 | 0.04 | 0.05 | 0.06 | 0.02 | 0.06 |
| Net realized and unrealized gain (loss) on investments | 0.27 | 0.07 | (0.26) | 1.08 | 0.01 |
| Total from investment operations | 0.31 | 0.12 | (0.20) | 1.10 | 0.07 |
| Less distributions | |||||
| From net investment income | — | (0.30) | — | (0.04) | (1.55) |
| Net asset value, end of period | $10.00 | $9.69 | $9.87 | $10.07 | $9.01 |
| Total return (%)2 | 3.20 | 1.34 | (1.99) | 12.31 | 0.82 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $1 | $1 | $1 | $1 | $1 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.63 | 1.55 | 1.60 | 1.62 | 1.58 |
| Expenses including reductions | 1.63 | 1.54 | 1.59 | 1.62 | 1.57 |
| Net investment income | 0.45 | 0.47 | 0.58 | 0.21 | 0.62 |
| Portfolio turnover (%) | 47 | 59 | 59 | 57 | 2173 |
| 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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
| 21 | JOHN HANCOCK Multi-Asset Absolute Return Fund | | SEE NOTES TO FINANCIAL STATEMENTS |
| CLASS R6 SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $9.98 | $10.15 | $10.31 | $9.23 | $10.71 |
| Net investment income1 | 0.09 | 0.08 | 0.12 | 0.06 | 0.10 |
| Net realized and unrealized gain (loss) on investments | 0.27 | 0.09 | (0.28) | 1.10 | 0.02 |
| Total from investment operations | 0.36 | 0.17 | (0.16) | 1.16 | 0.12 |
| Less distributions | |||||
| From net investment income | — | (0.34) | — | (0.08) | (1.60) |
| Net asset value, end of period | $10.34 | $9.98 | $10.15 | $10.31 | $9.23 |
| Total return (%)2 | 3.51 | 1.74 | (1.55) | 12.70 | 1.34 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $31 | $134 | $227 | $130 | $106 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.21 | 1.14 | 1.16 | 1.19 | 1.12 |
| Expenses including reductions | 1.20 | 1.13 | 1.15 | 1.18 | 1.11 |
| Net investment income | 0.85 | 0.81 | 1.15 | 0.64 | 1.05 |
| Portfolio turnover (%) | 47 | 59 | 59 | 57 | 2173 |
| 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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
| SEE NOTES TO FINANCIAL STATEMENTS | | JOHN HANCOCK Multi-Asset Absolute Return Fund | 22 |
| CLASS NAV SHARES Period ended | 7-31-24 | 7-31-23 | 7-31-22 | 7-31-21 | 7-31-20 |
| Per share operating performance | |||||
| Net asset value, beginning of period | $9.97 | $10.15 | $10.31 | $9.23 | $10.71 |
| Net investment income1 | 0.09 | 0.09 | 0.11 | 0.06 | 0.10 |
| Net realized and unrealized gain (loss) on investments | 0.27 | 0.07 | (0.27) | 1.11 | 0.02 |
| Total from investment operations | 0.36 | 0.16 | (0.16) | 1.17 | 0.12 |
| Less distributions | |||||
| From net investment income | — | (0.34) | — | (0.09) | (1.60) |
| Net asset value, end of period | $10.33 | $9.97 | $10.15 | $10.31 | $9.23 |
| Total return (%)2 | 3.61 | 1.74 | (1.46) | 12.73 | 1.34 |
| Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $103 | $100 | $82 | $59 | $53 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 1.20 | 1.13 | 1.15 | 1.17 | 1.11 |
| Expenses including reductions | 1.20 | 1.12 | 1.14 | 1.17 | 1.10 |
| Net investment income | 0.89 | 0.93 | 1.13 | 0.65 | 1.10 |
| Portfolio turnover (%) | 47 | 59 | 59 | 57 | 2173 |
| 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 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
| 23 | JOHN HANCOCK Multi-Asset Absolute Return Fund | | SEE NOTES TO FINANCIAL STATEMENTS |
Notes to financial statements
Note 1—Organization
John Hancock Multi-Asset Absolute
Return Fund (the fund) is a series of John Hancock Funds II (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 long-term total return.
The fund may offer multiple classes
of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain
investors. Class R2 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to
John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. 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. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. 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 net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.
In order to value the securities,
the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal
market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are typically
valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied 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 4:00 P.M. ET, 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 are generally valued using
evaluated prices obtained from 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. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
| | JOHN HANCOCK Multi-Asset Absolute Return Fund | 24 |
In certain instances, the Pricing
Committee of the Advisor 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.
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the
Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready
market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of
securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by
the Pricing Committee, following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain
foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
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 Advisor’s 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.
The following is a summary of the
values by input classification of the fund’s investments as of July 31, 2024, by major security category or type:
| Total value at 7-31-24 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
| Investments in securities: | ||||
| Assets | ||||
| Common stocks | ||||
| Brazil | $1,405,615 | $1,405,615 | — | — |
| Canada | 702,718 | 702,718 | — | — |
| China | 5,535,406 | 1,386,976 | $4,148,430 | — |
| Denmark | 6,846,438 | — | 6,846,438 | — |
| France | 6,487,443 | — | 6,487,443 | — |
| Germany | 4,950,409 | — | 4,950,409 | — |
| Hong Kong | 203,258 | — | 203,258 | — |
| Hungary | 5,788 | — | 5,788 | — |
| Indonesia | 551,071 | — | 551,071 | — |
| Ireland | 6,421,472 | 6,421,472 | — | — |
| Israel | 1,980,526 | 1,980,526 | — | — |
| 25 | JOHN HANCOCK Multi-Asset Absolute Return Fund | |
| Total value at 7-31-24 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
| Japan | $4,502,518 | — | $4,502,518 | — |
| Mexico | 1,190,312 | $1,190,312 | — | — |
| Netherlands | 604,354 | — | 604,354 | — |
| Philippines | 35,703 | — | 35,703 | — |
| South Africa | 752,064 | — | 752,064 | — |
| South Korea | 4,536,675 | 76,868 | 4,459,807 | — |
| Spain | 3,577,815 | — | 3,577,815 | — |
| Switzerland | 2,937,440 | 981,074 | 1,956,366 | — |
| Taiwan | 5,549,869 | 3,031,321 | 2,518,548 | — |
| Thailand | 454,430 | — | 454,430 | — |
| United Kingdom | 9,375,316 | — | 9,375,316 | — |
| United States | 226,003,309 | 226,003,309 | — | — |
| U.S. Government and Agency obligations | 9,508,787 | — | 9,508,787 | — |
| Foreign government obligations | 154,562 | — | 154,562 | — |
| Corporate bonds | 11,169,689 | — | 11,169,689 | — |
| Total investments in securities | $315,442,987 | $243,180,191 | $72,262,796 | — |
| Derivatives: | ||||
| Assets | ||||
| Futures | $3,126,562 | $3,126,562 | — | — |
| Forward foreign currency contracts | 3,010,584 | — | $3,010,584 | — |
| Liabilities | ||||
| Futures | (1,980,009) | (1,980,009) | — | — |
| Forward foreign currency contracts | (1,823,286) | — | (1,823,286) | — |
| Level 3 includes securities valued at $0. Refer to Fund’s investments. | ||||
Security transactions and related
investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are
reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a
non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income
is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the
fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and
may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of
securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is
reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar
value of securities denominated in that currency.
| | JOHN HANCOCK Multi-Asset Absolute Return Fund | 26 |
Funds that invest internationally
generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions,
regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based
upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security
sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
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. 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. During the year ended July 31, 2024, the average daily loan
balance for which loans were outstanding amounted to $81,500,000 and the weighted average interest rate was 6.33%. Interest expense, paid under the line of credit, amounted to approximately $56,500 and is included in
Other expenses on the Statement of operations. Commitment fees for the year ended July 31, 2024 were $4,715.
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.
For federal income tax purposes, as
of July 31, 2024, the fund has a short-term capital loss carryforward of $572,113,987 available to offset future net realized capital gains. This carryforward does not expire.
As of July 31, 2024, 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.
| 27 | JOHN HANCOCK Multi-Asset Absolute Return Fund | |
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 and pays dividends annually. Capital gain
distributions, if any, are typically distributed annually.
The tax character of distributions
for the years ended July 31, 2024 and 2023 was as follows:
| July 31, 2024 | July 31, 2023 | |
| Ordinary income | — | $18,761,730 |
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 July 31,
2024, the components of distributable earnings on a tax basis consisted of $5,542,321 of undistributed ordinary income.
Such distributions and distributable
earnings, on a tax basis, if any, 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 at fiscal year end. 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. Book-tax differences are primarily attributable to foreign currency transactions, wash sale loss deferrals, derivative transactions and investments in passive foreign investment
companies.
Note 3—Derivative instruments
The fund may invest in derivatives
in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The
risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty
or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other
referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor
its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Derivatives which are typically
traded through the OTC market are regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential
counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an
International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the
agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has
the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may
have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net
aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund, if any, is held in a segregated account by a third-party agent or held by the custodian bank for the
benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund, if any, for OTC transactions is held in a
| | JOHN HANCOCK Multi-Asset Absolute Return Fund | 28 |
segregated account at the fund’s custodian
and is noted in the accompanying Fund’s investments, or if cash is posted, on the Statement of assets and liabilities. The fund’s risk of loss due to counterparty risk is equal to the asset value of
outstanding contracts offset by collateral received.
Certain derivatives are traded or
cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between
the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Futures are traded on an exchange and
cleared through a central clearinghouse. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to
movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss
up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures
contract, the fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is set by the broker and is generally based on a percentage of the contract
value. The margin deposit must then be maintained at the established level over the life of the contract. Cash that has been pledged by the fund, if any, is detailed in the Statement of assets and liabilities as
Collateral held at broker for futures contracts. Securities pledged by the fund, if any, are identified in the Fund’s investments. Subsequent payments, referred to as variation margin, are made or received by
the fund periodically and are based on changes in the market value of open futures contracts. Futures contracts are marked-to-market daily and unrealized gain or loss is recorded by the fund. Payable for futures
variation margin is included on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
During the year ended July 31, 2024,
the fund used futures contracts to manage against changes in certain securities markets and interest rates, gain exposure to certain securities markets and manage duration of the fund. The fund held futures
contracts with USD notional values ranging from $279.0 million to $445.3 million, as measured at each quarter end.
Forward foreign currency
contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls
for delivery of the currencies on a future date that is specified in the contract. Forwards are typically traded OTC. Risks related to the use of forwards include the possible failure of counterparties to meet the
terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, and the risk that currency movements will not favor the fund thereby reducing the fund’s total return,
and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward
foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain
or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or
settlement with the counterparty.
During the year ended July 31, 2024,
the fund used forward foreign currency contracts to manage against changes in foreign currency exchange rates and gain exposure to foreign currencies. The fund held forward foreign currency contracts with USD notional
values ranging from $388.8 million to $564.6 million, as measured at each quarter end.
| 29 | JOHN HANCOCK Multi-Asset Absolute Return Fund | |
Swaps. Swap agreements are agreements between the fund and a counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are
privately negotiated in the OTC market (OTC swaps) or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as a component
of unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Upfront payments made/received by
the fund, if any, are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. A termination payment by the counterparty or the
fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund.
Entering into swap agreements
involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that produce losses in excess of the amounts recognized on the Statement of assets and liabilities. Such risks
involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms
of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting
transactions.
Credit default swaps. Credit default swaps (CDS) involve the exchange of a fixed rate premium (paid by the Buyer), for protection against the loss in value of an underlying debt instrument, referenced entity or
index, in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor” (the Seller), receiving the premium and agreeing to
contingent payments that are specified within the credit default agreement. The fund may enter into CDS in which it may act as either Buyer or Seller. By acting as the Seller, the fund may incur economic leverage
since it would be obligated to pay the Buyer the notional amount of the contract in the event of a default. The amount of loss in such case could be significant, but would typically be reduced by any recovery value on
the underlying credit.
Credit default swaps — Buyer
During the year ended July 31, 2024,
the fund used credit default swap contracts as the buyer to manage against potential credit events. The fund held credit default swaps with total USD notional amounts ranging up to $2.0 million,as measured at each
quarter end. There were no open CDS contracts where the fund acted as buyer as of July 31, 2024.
Fair value of derivative instruments
by risk category
The table below summarizes the fair
value of derivatives held by the fund at July 31, 2024 by risk category:
| Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
| Interest rate | Receivable/payable for futures variation margin1 | Futures | $2,946,472 | $(415,293) |
| Equity | Receivable/payable for futures variation margin1 | Futures | 180,090 | (1,564,716) |
| Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | 3,010,584 | (1,823,286) |
| $6,137,146 | $(3,803,295) |
| 1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund’s investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
| | JOHN HANCOCK Multi-Asset Absolute Return Fund | 30 |
For financial reporting purposes,
the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Statement of assets and liabilities. In the event of default by the
counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty.
Effect of derivative instruments on
the Statement of operations
The table below summarizes the net
realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended July 31, 2024:
| Statement of operations location - Net realized gain (loss) on: | ||||
| Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
| Interest rate | $(9,562,633) | — | — | $(9,562,633) |
| Currency | — | $(8,719,692) | — | (8,719,692) |
| Credit | — | — | $(33,486) | (33,486) |
| Equity | (19,363,319) | — | — | (19,363,319) |
| Total | $(28,925,952) | $(8,719,692) | $(33,486) | $(37,679,130) |
The table below summarizes the net
change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended July 31, 2024:
| Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |||
| Risk | Futures contracts | Forward foreign currency contracts | Total |
| Interest rate | $7,290,133 | — | $7,290,133 |
| Currency | — | $7,473,318 | 7,473,318 |
| Equity | 6,128,307 | — | 6,128,307 |
| Total | $13,418,440 | $7,473,318 | $20,891,758 |
Note 4—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 5—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)
1.050% of the first $200 million of the fund’s average daily net assets; and (b) 1.000% of the next $300 million of the fund’s average daily net assets provided that net assets are less than or equal to
$500 million. If net assets exceed $500 million, the following rates apply: (a) 0.950% of the first $2.0 billion of the fund’s average daily net assets; (b) 0.920% of
| 31 | JOHN HANCOCK Multi-Asset Absolute Return Fund | |
the next $2.0 billion of the fund’s average
daily net assets; and (c) 0.900% of the fund’s average daily net assets in excess of $4.0 billion. The Advisor has a subadvisory agreement with Nordea Investment Management North America, Inc. 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 July 31, 2024, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement expires on July 31, 2026, 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.
For the year ended July 31, 2024,
the expense reductions described above amounted to the following:
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 July 31, 2024, were equivalent to a net annual effective rate of 1.02% 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 July 31, 2024, amounted to an annual rate of 0.02% 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. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. 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 | Service fee |
| Class A | 0.30% | — |
| Class C | 1.00% | — |
| Class R2 | 0.25% | 0.25% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $8,154 for the year ended July 31, 2024. Of this amount, $1,489 was retained
and used for printing prospectuses, advertising, sales literature and other purposes and $6,665 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be
subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject
to a 1.00% sales charge. Class C shares that are redeemed within one year of
| | JOHN HANCOCK Multi-Asset Absolute Return Fund | 32 |
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. 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 July 31, 2024, CDSCs received by the Distributor amounted to $1,294 for Class C shares. There were no CDSCs received by
the Distributor for Class A shares.
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 July 31, 2024 were as follows:
| Class | Distribution and service fees | Transfer agent fees |
| Class A | $118,841 | $46,013 |
| Class C | 34,977 | 4,070 |
| Class I | — | 215,479 |
| Class R2 | 3,751 | 45 |
| Class R6 | — | 2,254 |
| Total | $157,569 | $267,861 |
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 6—Fund share transactions
Transactions in fund shares for the
years ended July 31, 2024 and 2023 were as follows:
| Year Ended 7-31-24 | Year Ended 7-31-23 | |||
| Shares | Amount | Shares | Amount | |
| Class A shares | ||||
| Sold | 575,752 | $5,672,468 | 772,654 | $7,493,368 |
| Distributions reinvested | — | — | 132,149 | 1,243,521 |
| Repurchased | (1,150,402) | (11,313,455) | (1,119,204) | (10,780,843) |
| Net decrease | (574,650) | $(5,640,987) | (214,401) | $(2,043,954) |
| 33 | JOHN HANCOCK Multi-Asset Absolute Return Fund | |
| Year Ended 7-31-24 | Year Ended 7-31-23 | |||
| Shares | Amount | Shares | Amount | |
| Class C shares | ||||
| Sold | 28,793 | $269,556 | 70,374 | $650,520 |
| Distributions reinvested | — | — | 25,990 | 236,767 |
| Repurchased | (471,019) | (4,452,273) | (759,644) | (7,093,782) |
| Net decrease | (442,226) | $(4,182,717) | (663,280) | $(6,206,495) |
| Class I shares | ||||
| Sold | 2,474,519 | $24,723,505 | 5,829,430 | $57,021,651 |
| Distributions reinvested | — | — | 646,711 | 6,182,558 |
| Repurchased | (7,235,560) | (72,686,629) | (7,551,040) | (74,086,872) |
| Net decrease | (4,761,041) | $(47,963,124) | (1,074,899) | $(10,882,663) |
| Class R2 shares | ||||
| Sold | 8,743 | $85,105 | 3,188 | $30,589 |
| Distributions reinvested | — | — | 2,861 | 26,780 |
| Repurchased | (18,946) | (186,909) | (23,249) | (220,992) |
| Net decrease | (10,203) | $(101,804) | (17,200) | $(163,623) |
| Class R6 shares | ||||
| Sold | 535,692 | $5,375,960 | 3,160,079 | $31,166,141 |
| Distributions reinvested | — | — | 718,413 | 6,896,761 |
| Repurchased | (10,885,555) | (108,242,867) | (12,828,830) | (125,956,351) |
| Net decrease | (10,349,863) | $(102,866,907) | (8,950,338) | $(87,893,449) |
| Class NAV shares | ||||
| Sold | 994,438 | $10,147,360 | 2,881,850 | $28,434,493 |
| Distributions reinvested | — | — | 340,895 | 3,272,596 |
| Repurchased | (1,020,001) | (10,306,304) | (1,254,349) | (12,369,471) |
| Net increase (decrease) | (25,563) | $(158,944) | 1,968,396 | $19,337,618 |
| Total net decrease | (16,163,546) | $(160,914,483) | (8,951,722) | $(87,852,566) |
Affiliates of the fund owned 100% of
shares of Class NAV on July 31, 2024. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7—Purchase and sale of securities
Purchases and sales of securities,
other than short-term investments and U.S. Treasury obligations, amounted to $123,488,431 and $277,839,382, respectively, for the year ended July 31, 2024. Purchases and sales of U.S. Treasury obligations aggregated
$44,262,016 and $54,083,672, respectively, for the year ended July 31, 2024.
| | JOHN HANCOCK Multi-Asset Absolute Return Fund | 34 |
Note 8—Investment by affiliated funds
Certain investors in the fund are
affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a
significant portion of the fund’s net assets. At July 31, 2024, funds within the John Hancock group of funds complex held 31.0% of the fund’s net assets. The following fund(s) had an affiliate ownership of
5% or more of the fund’s net assets:
| Fund | Affiliated Concentration |
| John Hancock Funds II Alternative Asset Allocation Fund | 31.0% |
| 35 | JOHN HANCOCK Multi-Asset Absolute Return Fund | |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of John
Hancock Funds II and Shareholders of John Hancock Multi-Asset Absolute Return Fund
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities, including the fund’s investments, of John Hancock Multi-Asset Absolute Return Fund (the "Fund") as of July 31, 2024, the related statement of operations for the year ended
July 31, 2024, the statements of changes in net assets for each of the two years in the period ended July 31, 2024, including the related notes, and the financial highlights for each of the five years in the period
ended July 31, 2024 (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
July 31, 2024, 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 July 31, 2024 and the financial highlights for each of the five years
in the period ended July 31, 2024 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 July 31, 2024 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.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 12, 2024
We have served as the auditor of one
or more investment companies in the John Hancock group of funds since 1988.
| | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 36 |
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 July 31, 2024.
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 2024 Form 1099-DIV in early 2025. This will reflect the tax character of all distributions paid in calendar year 2024.
Please consult a tax advisor regarding
the tax consequences of your investment in the fund.
| 37 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | |
EVALUATION OF ADVISORY AND
SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
This section describes the
evaluation by the Board of Trustees (the Board) of John Hancock Funds II (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory
Agreement (the Subadvisory Agreement) with Nordea Investment Management North America, Inc. (the Subadvisor) for John Hancock Multi-Asset Absolute Return Fund (the fund). The Advisory Agreement and Subadvisory
Agreement are collectively referred to as the Agreements. Prior to the June 24-27, 2024 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed
continuation of the Agreements at the meeting held on May 28 – May 30, 2024. The Trustees who are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as
amended (the 1940 Act) (the Independent Trustees) also met separately to evaluate and discuss the information presented, including with counsel to the Independent Trustees and a third-party consulting firm.
Approval of Advisory and Subadvisory
Agreements
At meetings held on June 24-27,
2024, the Board, including the Independent Trustees, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and
the Subadvisor with respect to the fund.
In considering the Advisory
Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense
information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative
performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and
the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor.
At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses,
and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with
management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly
performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in
connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by
the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the
respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board
asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout
the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed
the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
| | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 38 |
Approval of Advisory Agreement
In approving the Advisory Agreement
with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends
prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The
Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations
throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the
Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV.
The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant
to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and
monitoring its own and the fund’s compliance programs, risk management programs, liquidity risk management programs, derivatives risk management programs, and cybersecurity programs, had expanded over time as a
result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision
of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered
the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise,
litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent,
and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through
Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John
Hancock Fund Complex).
In the course of their deliberations
regarding the Advisory Agreement, the Board considered, among other things:
| (a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
| (b) | the background, qualifications and skills of the Advisor’s personnel; |
| (c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| (d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
| (e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
| 39 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | |
| (f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
| (g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor
may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with
the consideration of the Advisory Agreement, the Board:
| (a) | reviewed information prepared by management regarding the fund’s performance; |
| (b) | considered the comparative performance of an applicable benchmark index; |
| (c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
| (d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found
the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance
comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the three-, five- and ten-year periods and underperformed for the one-year period
ended December 31, 2023. The Board also noted that the fund outperformed its peer group median for the three-year period and underperformed for the one-, five- and ten-year periods ended December 31, 2023. The Board
took into account management’s discussion of the fund’s performance, including the favorable performance relative to the benchmark index for the three-, five- and ten-year periods and relative to its peer
group median for the three-year period. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s
benchmark index. The Board noted that the fund’s previous subadvisor was replaced in August 2019 and, as a result, the fund’s longer term performance in part reflects that of the previous subadvisor.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees
(and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the
management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party
provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include
both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are lower than the peer group median.
The Board took into account
management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each
case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length
with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The
Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with
respect to the fund and that the
| | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 40 |
fund has breakpoints in its contractual management
fee schedule that reduces management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory
affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and
Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature,
extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the
Board:
| (a) | reviewed financial information of the Advisor; |
| (b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
| (c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
| (d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
| (e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
| (f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
| (g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
| (h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
| (i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| (j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| (k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board
concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the
Board:
| (a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or |
| 41 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | |
| otherwise reimburse the expenses of the participating portfolios (the reimbursement). 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; | |
| (b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
| (c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale |
Approval of Subadvisory Agreement
In making its determination with
respect to approval of the Subadvisory Agreement, the Board reviewed:
| (1) | information relating to the Subadvisor’s business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
| (2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
| (3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
| (4) | information relating to the nature and scope of any material relationships and their significance to the fund’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took
into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the
Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the
Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board
also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or
investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its
operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the
Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with
the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the
Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is
consistent with the fund’s investment objective, the selection of investment securities and the placement of
| | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 42 |
orders for the purchase and sale of such
securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices,
including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the
Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability
of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided
and the profits to be realized by the Subadvisor from its relationship with the fund were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information
regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which
the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment
companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of
interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered
other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in
the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered
the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to
the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the
Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the
fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the
Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as
applicable.
The Board’s decision to
approve the Subadvisory Agreement was based on a number of determinations, including the following:
| (1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| (2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
| (3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
| 43 | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | |
| (4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
***
Based on the Board’s
evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the
Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement
for an additional one-year period.
| | JOHN HANCOCK MULTI-ASSET ABSOLUTE RETURN FUND | 44 |
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.
John Hancock Investment Management
Distributors LLC, Member FINRA, SIPC
200 Berkeley Street, Boston, MA 02116, 800-225-5291, jhinvestments.com
200 Berkeley Street, Boston, MA 02116, 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 Multi-Asset Absolute Return Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
| MF3743813 | 395A 7/24 |
9/24
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PROXY DISCLOSURE FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Information included in Item 7, if applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Refer to information included in Item 7.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Information included in Item 7, if applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATE PURCHASERS.
Not applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter".
ITEM 16. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Funds II
| By: | /s/ Kristie M. Feinberg |
| ------------------------------ | |
| Kristie M. Feinberg | |
| President | |
| Date: | September 12, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Kristie M. Feinberg |
| ------------------------------ | |
| Kristie M. Feinberg | |
| President | |
| Date: | September 12, 2024 |
| By: | /s/ Fernando A. Silva |
| --------------------------- | |
| Fernando A. Silva | |
| Chief Financial Officer | |
| Date: | September 12, 2024 |
ATTACHMENTS / EXHIBITS
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