John Hancock Funds
U.S.
Government
Cash
Reserve
SEMI-ANNUAL REPORT
November 30, 1996
TRUSTEES
Edward J. Boudreau, Jr.
James F. Carlin*
William H. Cunningham*
Charles F. Fretz*
Harold R. Hiser, Jr.*
Anne C. Hodsdon
Charles L. Ladner*
Leo E. Linbeck, Jr.*
Patricia P. McCarter*
Steven R. Pruchansky*
Richard S. Scipione
Lt. Gen. Norman H. Smith, USMC (Ret.)*
John P. Toolan*
*Members of the Audit Committee
OFFICERS
Edward J. Boudreau, Jr.
Chairman and Chief Executive Officer
Robert G. Freedman
Vice Chairman and
Chief Investment Officer
Anne C. Hodsdon
President
James B. Little
Senior Vice President and
Chief Financial Officer
Susan S. Newton
Vice President and Secretary
James J. Stokowski
Vice President and Treasurer
Thomas H. Connors
Second Vice President and Compliance Officer
CUSTODIAN
State Street Bank & Trust Company
225 Franklin Street
Boston, Massachusetts 02111
TRANSFER AGENT
John Hancock Signature Services, Inc.
P.O. Box 9116
Boston, Massachusetts 02205-9116
INVESTMENT ADVISER
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
PRINCIPAL DISTRIBUTOR
John Hancock Funds, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, Massachusetts 02109
A 1 1/4" x 1" photo of Edward J. Boudreau, Jr., Chairman and Chief
Executive Officer, flush right, next to second paragraph.
CHAIRMAN'S MESSAGE
DEAR FELLOW SHAREHOLDERS:
Since late 1994, prospectus simplification has been a major topic
in the mutual fund industry. At that time, Securities and Exchange
Commission Chairman Arthur Levitt called on fund companies to make
their prospectuses more user-friendly. He noted that prospectuses
are often overloaded with technical detail and are hard for most
investors to understand. Many industry observers agreed, and rightly so.
So it is my pleasure to let you know that after being under development
for a year, John Hancock Funds has introduced new simplified and
consolidated prospectuses. The prospectuses feature shorter, clearer
language with a streamlined design, and they incorporate several funds
with similar investment objectives into one document. They cover our
income, growth, growth and income, tax-free income, international/global
and money market funds. We are gratified at the favorable reviews that
our new prospectuses have received from shareholders, financial
advisers, industry analysts and the press. We believe they are a bold
but sensible step forward. And while they are easier to read, they
still comply with all federal and state guidelines.
We have taken the initiative to create a prospectus that dramatically
departs from the norm. Among its most innovative features is a two-page
spread highlighting each fund's goals and investment strategy, the
types of securities it buys, its portfolio management and risk factors,
all in plainer language. Fund expenses and financial highlights are now
found here, too, as is a new bar chart that shows year-to-year
volatility for each fund. Other features include a better presentation
of fund services, a new glossary of investment risks and a discussion
about how funds are organized, including a diagram showing the
connection of the various players that provide services to your Hancock
fund(s).
We believe we have made a significant advancement in the drive toward
better mutual fund prospectuses. We hope you will agree because in the
end, we did it for you, our shareholders.
Sincerely,
/S/ EDWARD J. BOUDREAU, JR.
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER
BY DAWN BAILLIE FOR THE PORTFOLIO MANAGEMENT TEAM
John Hancock
U.S. Government
Cash Reserve
Short-term interest rates unchanged in the last
six months, despite mixed economic signals
Money market yields remained fairly steady during the last six months,
even though there were some changes in the financial environment and
market sentiment during the period. At the beginning of the period in
June, the economy was sending off mixed economic signals. Strong
employment figures each month were sparking inflation fears and
sending interest rates up, only to be followed by monthly inflation
figures that confirmed there was no cause for alarm. As this seesaw
environment progressed, the bond market remained volatile until
September, when it rallied after softer economic numbers appeared and
inflation fears subsided.
During the period, investors also began to wonder if the Federal
Reserve would reverse its course and push up short-term interest rates
to cool down the economy and prevent an inflation outbreak. But the Fed
left short-term rates alone, believing that the economy's growth rate
was under control. Even though unemployment is at its lowest level in
years, that has not translated into wage inflation, one key factor that
the Fed watches in determining when to tweak the federal funds rate.
This important short-term interest rate is the rate that banks charge
each other for overnight loans and is also a benchmark for pricing
money market securities. During the Fund's semi-annual period, the rate
remained unchanged at 5.25%.
A 2 1/4" x 3 1/2" photo of the Fund's portfolio management team at
bottom right. Caption reads: U.S. Government Cash Reserve management
team members: (l-r) Barry Evans, Jamie Kellogg, Bruce Pickett, Dawn
Baillie.
"Money
market yields
remained
fairly
steady..."
Bar chart with heading "7-Day Yield" at top of left hand column. Under
the heading is the footnote "As of November 30, 1996." The chart is
scaled in increments of 1% from top to bottom with 6% at the top and 0%
at the bottom. Within the chart, there are two solid bars. The first
represents the 5.34% 7-day yield for John Hancock U.S. Government Cash
Reserve Fund. The second represents the 4.67% 7-day yield for the
average U.S. government/agency money market fund. Footnote below reads:
"The average U.S. government/agency money market fund is tracked by
IBC/Donoghue's Money Fund Report."
"...our view is
that money
market fund
investors are
in for more
of the
same."
On November 30, 1996, John Hancock U.S. Government Cash Reserve had a 7-
day average yield of 5.34%. By comparison, the average U.S. government/
agency money market fund had a 7-day average yield of 4.67%, according
to IBC/Donoghue's Money Fund Report.
Long maturity boosts yield
Throughout the last six months, we kept the Fund's maturity
longer than the average money fund (measured by IBC/Donoghue) by
anywhere from 10 to 20 days. This helped us lock in higher yields in an
environment where rates moved rapidly, but stayed within a tight range.
At the beginning of the period, the Fund's average maturity was 61 days
and we gradually began lengthening our maturity to an average 78 days by
the end of November, compared to a 47-day maturity for the average
taxable money fund. We took this more aggressive stance because we
believed the economy was continuing to grow at a moderate pace and that
there was not enough evidence of the kind of pricing pressures that
would prompt the Fed to raise short-term rates.
Going forward
We continue to hold the view that the economy will maintain
its moderate growth path with no signs of inflation as we enter 1997. As
long as that's the case, we do not expect the Fed to change short-term
interest rates. But that's not to say that the Fed has changed its
inclinations; it remains extremely cautious about inflation and
sensitive to each new piece of economic data for any signs of an
inflation upsurge. Based on our status quo expectation for the federal
funds rate, we intend to keep the Fund's maturity longer than average
until the economic data tells us we should change course. If we begin to
see signs of inflation on the horizon, we'll shorten our maturity so
that we'll be able to take advantage of any changes in the economic
environment. But for now, our view is that money market fund investors
are in for more of the same. We'll try to capture as much yield as we
can, while maintaining stability of principal.
This commentary reflects the views of the portfolio management team
through the end of the Fund's period discussed in this report. Of
course, the team's views are subject to change as market and other
conditions warrant.
The Fund is neither insured nor guaranteed by the U.S. government.
There can be no assurances that the Fund will be able to maintain a
net asset value of $1.00 per share.
FINANCIAL STATEMENTS
John Hancock Funds - U.S. Government Cash Reserve
The Statement of Assets and Liabilities is the Fund's balance sheet
and shows the value of what the Fund owns, is due and owes on
November 30, 1996. You'll also find the net asset value per share as
of that date.
Statement of Assets and Liabilities
November 30, 1996 (Unaudited)
- -------------------------------------------------------------
Assets:
Investments, in money market instruments,
at value - Note C:
U.S. government obligations
(cost - $42,094,692) $ 42,094,692
Joint repurchase agreement
(cost - $215,000) 215,000
-------------
42,309,692
Cash 293,356
Interest receivable 908,453
Receivable from John Hancock Advisers, Inc.
and affiliates - Note B 2,614
Other assets 13,965
-------------
Total Assets 43,528,080
- -------------------------------------------------------------
Liabilities:
Dividend payable 12,765
Accounts payable and accrued expenses 50,116
-------------
Total Liabilities 62,881
- -------------------------------------------------------------
Net Assets:
Capital paid-in 43,465,199
-------------
Net Assets $ 43,465,199
=============================================================
Net Asset Value, Offering Price and Redemption
Price Per Share: (based on 43,465,199 shares of
beneficial interest outstanding - unlimited
number of shares authorized with no par value) $ 1.00
============
See notes to financial statements.
The Statement of Operations summarizes the Fund's investment
income earned and expenses incurred in operating the Fund
for the period stated.
Statement of Operations
Six months ended November 30, 1996 (Unaudited)
- -------------------------------------------------------------
Investment Income:
Interest $ 1,192,545
-----------
Expenses:
Investment management fee - Note B 109,291
Registration and filing fees 31,601
Custodian fee 22,304
Auditing fee 12,039
Transfer agent fee - Note B 10,058
Printing 9,118
Financial services fee - Note B 3,462
Trustees' fees 1,481
Legal fees 1,261
Miscellaneous 410
-----------
Total Expenses 201,025
- -------------------------------------------------------------
Less expense reductions -
Note B ( 124,176)
- -------------------------------------------------------------
Net Expenses 76,849
- -------------------------------------------------------------
Net Investment Income 1,115,696
- -------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations $ 1,115,696
=============================================================
See notes to financial statements.
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- ---------------------------------------------------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED NOVEMBER 30, 1996
MAY 31, 1996 (UNAUDITED)
------------ ------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From Operations:
Net Investment Income $ 1,550,405 $ 1,115,696
------------ ------------
Distributions to Shareholders:
Dividends from net investment income ($0.0548
and $0.0255 per share, respectively) ( 1,550,405) ( 1,115,696)
------------ ------------
From Fund Share Transactions - Net* ( 223,951) 14,558,435
------------ ------------
Net Assets:
Beginning of period 29,130,715 28,906,764
------------ ------------
End of period $ 28,906,764 $ 43,465,199
============ ============
* Analysis of Fund Share Transactions at $1 Per Share:
Shares sold $368,510,358 $388,092,866
Shares issued to shareholders in reinvestment
of distributions 1,191,507 896,092
------------ ------------
369,701,865 388,988,958
Less shares repurchased ( 369,925,816) ( 374,430,523)
------------ ------------
Net increase (decrease) ($ 223,951) $ 14,558,435
============ ============
The Statement of Changes in Net Assets shows how the value of the Fund's net assets has
changed since the end of the previous period. The difference reflects earnings less expenses,
distributions paid to shareholders, and any increase or decrease in money shareholders
invested in the Fund. The footnote illustrates the number of Fund shares sold, reinvested
and redeemed during the last two periods, along with the corresponding dollar value.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
John Hancock Funds - U.S. Government Cash Reserve
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period
indicated, investment returns, key ratios and supplemental data are listed as follows:
- ------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
NOVEMBER 30, 1996
YEAR ENDED MAY 31, (UNAUDITED)
-------------------------------------------------------- ------------
1992 1993 1994 1995(3) 1996
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------- ------- -------
Net Investment Income 0.05 0.03 0.03 0.05 0.05 0.03
-------- -------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income ( 0.05) ( 0.03) ( 0.03) ( 0.05) ( 0.05) ( 0.03)
-------- -------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======= ======= =======
Total Investment Return
at Net Asset Value (2) 4.95% 3.25% 3.04% 5.07% 5.59% 1.27%(5)
Total Adjusted Investment Return
at Net Asset Value (1)(2) 4.62% 2.93% 2.74% 4.69% 4.84% 0.99%(5)
Ratios and Supplemental Data
Net Assets, End of Period (000's omitted) $109,358 $123,106 $94,408 $29,131 $28,907 $43,465
Ratio of Expenses to Average Net Assets 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%(4)
Ratio of Adjusted Expenses
to Average Net Assets (1) 0.68% 0.67% 0.65% 0.73% 1.10% 0.92%(4)
Ratio of Net Investment Income
to Average Net Assets 4.86% 3.19% 2.96% 4.79% 5.41% 5.13%(4)
Ratio of Adjusted Net Investment Income
to Average Net Assets (1) 4.53% 2.87% 2.66% 4.41% 4.66% 4.56%(4)
(1) Unreimbursed, without fee reduction.
(2) Assumes dividend reinvestment.
(3) On December 22, 1994, John Hancock Advisers, Inc. became the investment adviser of the Fund.
(4) Annualized.
(5) Not annualized.
The Financial Highlights summarize the impact of net investment income and dividends on a single share for the period
indicated. Additionally, important relationships between some items presented in the financial statements are expressed
in ratio form.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Schedule of Investments
November 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------------------------------------
The Schedule of Investments is a complete list of all securities owned by the U.S. Government Cash Reserve on
November 30, 1996. It's divided into two types of short-term investments.
PAR VALUE
INTEREST (000'S MARKET
ISSUER, DESCRIPTION RATE OMITTED) VALUE
- ------------------- -------- ---------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS
Governmental - U.S. Agencies (96.85%)
Federal Farm Credit Bank
12-02-96 5.400% $ 500 $ 499,999
Federal Farm Credit Bank
05-01-97 5.340 235 234,896
Federal Farm Credit Bank
05-01-97 5.500 500 500,044
Federal Home Loan Bank
12-03-96 # 5.910 350 350,007
Federal Home Loan Bank
12-04-96 # 6.100 1,500 1,500,072
Federal Home Loan Bank
12-09-96 4.640 300 299,947
Federal Home Loan Bank
12-17-96 # 6.570 1,500 1,500,563
Federal Home Loan Bank
12-30-96 4.570 500 499,649
Federal Home Loan Bank
01-09-97 # 5.965 2,000 2,000,889
Federal Home Loan Bank
01-10-97 5.430 600 599,828
Federal Home Loan Bank
01-31-97 4.505 2,090 2,085,649
Federal Home Loan Bank
02-07-97 5.250 500 500,000
Federal Home Loan Bank
03-05-97 5.290 500 499,987
Federal Home Loan Bank
03-06-97 5.035 800 799,108
Federal Home Loan Bank
03-13-97 5.265 2,000 2,000,000
Federal Home Loan Bank
03-18-97 5.392 500 500,000
Federal Home Loan Bank
03-28-97 5.560 500 500,000
Federal Home Loan Bank
05-09-97 5.680 545 545,275
Federal Home Loan Bank
09-22-97 5.370 250 248,903
Federal Home Loan Bank
09-26-97 6.200 2,000 2,001,684
Federal Home Loan Bank
09-30-97 5.925 1,495 1,498,165
Federal Home Loan Bank
11-04-97 5.810 100 100,000
Federal Home Loan Bank
11-06-97 5.820 1,500 1,500,000
Federal Home Loan Bank
12-15-97 7.870 1,000 1,022,188
Federal Home Loan Mortgage Corp.
12-09-96 4.640 935 934,834
Federal Home Loan Mortgage Corp.
01-27-97 4.525 1,000 998,455
Federal Home Loan Mortgage Corp.
10-20-97 6.033 1,000 1,000,000
Federal National Mortgage Association
12-04-96 5.390 1,000 999,996
Federal National Mortgage Association
12-12-96 # 8.600 1,000 1,000,945
Federal National Mortgage Association
12-16-96 7.720 385 385,338
Federal National Mortgage Association
12-23-96 8.200 3,000 3,004,522
Federal National Mortgage Association
12-26-96 5.350 150 149,966
Federal National Mortgage Association
01-10-97 7.600 575 576,215
Federal National Mortgage Association
01-17-97 7.860 600 601,711
Federal National Mortgage Association
01-21-97 4.380 500 499,242
Federal National Mortgage Association
08-22-97 5.360* 1,000 999,562
Federal National Mortgage Association
11-10-97 9.550 500 517,711
Student Loan Marketing Association
12-12-96 # 6.000 500 499,896
Student Loan Marketing Association
11-10-97 5.340* 1,500 1,499,324
Tennessee Valley Authority
12-15-96 4.600 5,150 5,147,746
Tennessee Valley Authority
01-15-97 6.000 500 500,277
Twelve Federal Land Banks
01-20-97 7.350 990 992,101
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $42,094,692) ( 96.85%) 42,094,692
----- -----------
Joint Repurchase Agreement (0.49%)
Investment in a joint repurchase
agreement transaction with SBC
Capital Markets, Inc. dated 11-29-96,
due 12-02-96 (secured by US Treasury
Bonds, 5.75% due 10-31-00 and 7.375%
due 11-15-97) Note A 5.680 215 215,000
------ -----------
TOTAL JOINT REPURCHASE AGREEMENT
(Cost $215,000) ( 0.49%) 215,000
----- -----------
TOTAL INVESTMENTS ( 97.34%) $42,309,692
===== ===========
* Floating rate note, interest rate effective November 30, 1996.
# Call Date.
The percentage shown for each investment category is the total value of that category
expressed as a percentage of the net assets of the Fund.
See notes to financial statements.
</TABLE>
NOTES TO
FINANCIAL STATEMENTS
John Hancock Funds - U.S. Government Cash Reserve
(UNAUDITED)
NOTE A --
ACCOUNTING POLICIES
John Hancock Current Interest Trust (the "Trust") is a diversified
open-end management investment company, registered under the Investment
Company Act of 1940. John Hancock U.S. Government Cash Reserve
(the "Fund") is the only series in the Trust presently issuing shares.
The Trustees may authorize the creation of additional Funds from time
to time to satisfy various investment objectives. The investment
objective of the Fund is to obtain maximum current income to the extent
consistent with maintaining liquidity and preserving capital.
Significant accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS The Board of Trustees have determined
appropriate methods for valuing portfolio securities. Accordingly,
portfolio securities are valued at amortized cost, in accordance with
Rule 2a-7 of the Investment Company Act of 1940, which approximates
market value. The amortized cost method involves valuing a security
at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of the difference between the principal amount
due at maturity and the cost of the security to the Fund. Interest
income on certain portfolio securities such as negotiable bank
certificates of deposit and interest bearing notes is accrued daily
and included in interest receivable.
JOINT REPURCHASE AGREEMENT Pursuant to an exemptive order issued by
the Securities and Exchange Commission, the Fund, along with other
registered investment companies having a management contract with John
Hancock Advisers, Inc. (the "Adviser"), a wholly-owned subsidiary of
The Berkeley Financial Group, may participate in a joint repurchase
agreement. Aggregate cash balances are invested in one or more
repurchase agreements, whose underlying securities are obligations of
the U.S. government and/or its agencies. The Fund's custodian bank
receives delivery of the underlying securities for the joint account on
the Fund's behalf. The Adviser is responsible for ensuring that the
agreement is fully collateralized at all times.
INVESTMENT TRANSACTIONS Investment transactions are recorded as of the
date of purchase, sale or maturity. Net realized gains and losses on
sales of investments are determined on the identified cost basis.
FEDERAL INCOME TAXES The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to
regulated investment companies. Accordingly, the Fund will not be
subject to federal income tax on taxable earnings which are distributed
to shareholders. Therefore, no federal income tax provision is
required.
DIVIDENDS The Fund's net investment income is declared daily as
dividends to shareholders of record as of the close of business on
the preceding day and distributed monthly.
EXPENSES The majority of the expenses of the Trust are directly
identifiable to an individual fund. Expenses which are not readily
identifiable to a specific fund are allocated in such a manner as
deemed equitable, taking into consideration, among other things, the
nature and type of expense and the relative sizes of the funds.
USE OF ESTIMATES The preparation of these financial statements in
accordance with generally accepted accounting principles incorporates
estimates made by management in determining the reported amounts of
assets, liabilities, revenues, and expenses of the Fund. Actual results
could differ from these estimates.
NOTE B --
MANAGEMENT FEE AND TRANSACTIONS WITH AFFILIATES AND OTHERS
Under the present investment management contract, the Fund pays a
monthly management fee to the Adviser for a continuous investment
program equivalent, on an annual basis, to the sum of (a) 0.500% of
the first $500,000,000 of the Fund's average daily net asset value,
(b) 0.425% of the next $250,000,000, (c) 0.375% of the next
$250,000,000, (d) 0.350% of the next $500,000,000, (e) 0.325% of the
next $500,000,000, (f) 0.300% of the next $500,000,000 and (g) 0.275%
in excess of $2,500,000,000.
The Adviser has agreed to limit Fund expenses further to the extent
required to prevent expenses from exceeding 0.35% of the Fund's average
daily net asset value, exclusive of certain expenses prescribed by
state law. Accordingly, for the period ended November 30, 1996, the
reduction in the Fund's expenses collectively with any additional
amounts not borne by the Fund by virtue of the expense limit amounted
to $124,176. The Adviser reserves the right to terminate this limitation
in the future.
The Fund has a distribution agreement with John Hancock Funds, Inc.
("JH Funds"), a wholly owned subsidiary of the Adviser. To reimburse JH
Funds for the services it provides as distributor of shares of the Fund,
the Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940. Accordingly, the Fund will make
payments to JH Funds for distribution and service expenses, at an annual
rate not exceed 0.15% of the Fund's average daily net assets. Under the
amended Rules of Fair Practice, curtailment of a portion of the Fund's
12b-1 payments could occur under certain circumstances. Payments of
fees under the Distribution Plan has been suspended until further notice
is given to the shareholders.
The Fund has a transfer agent agreement with John Hancock Signature
Services, Inc. ("Signature Services"), a wholly-owned subsidiary of The
Berkeley Financial Group. The Fund pays transfer agent fees based on
the number of shareholder accounts and certain out-of-pocket expenses.
On August 27, 1996, the Board of Trustees approved retroactively on
July 1, 1996, an agreement with the Adviser to perform necessary tax
and financial management services for the Fund. The compensation for
1996 is estimated to be at an annual rate of 0.01875% of the average
net assets of the Fund.
Mr. Edward J. Boudreau, Jr., Mr. Richard S. Scipione, and Ms. Anne C.
Hodsdon are directors and/or officers of the Adviser and/or its
affiliates, as well as a Trustees of the Fund. The compensation of
unaffiliated Trustees is borne by the Fund. Effective with the fees
paid for 1995, the unaffiliated Trustees may elect to defer for tax
purposes their receipt of this compensation under the John Hancock
Group of Funds Deferred Compensation Plan. The Fund makes investments
into other John Hancock funds, as applicable, to cover its liability
for the deferred compensation. Investments to cover the Fund's deferred
compensation liability are recorded on the Fund's books as an other
asset. The deferred compensation liability and the related other asset
are always equal and are marked to market on a periodic basis to
reflect any income earned by the investment as well as any unrealized
gains or losses.
NOTE C --
INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities, including discount
earned on investment securities, during the period ended November 30,
1996 aggregated $1,807,213,669 and $1,794,793,000, respectively.
The cost of investments owned at November 30, 1996 (including the
joint repurchase agreement) for Federal income tax purposes was
$42,309,692.
John Hancock Funds - U.S. Government Cash Reserve
SHAREHOLDER MEETING
On June 26, 1996, a special meeting of John Hancock U.S. Government
Cash Reserve Fund was held.
The shareholders approved an Amended and Restated Declaration of Trust
for the Fund.
The shareholder votes were 16,924,251 FOR, 5,646,552 AGAINST and
684,664 ABSTAINING.
The shareholders redesignated as nonfundamental the Fund's fundamental
investment restriction on investing in other investment companies.
The shareholder votes were 17,027,723 FOR, 5,562,752 AGAINST and
664,992 ABSTAINING.
The shareholders elected the following Trustees with the votes as
indicated:
NAME OF TRUSTEE FOR WITHHELD
- ---------------- -------------------------- -------------------
Edward J. Boudreau, Jr. 22,982,414 321,157
James F. Carlin 23,024,472 279,100
William H. Cunningham 23,024,472 279,100
Charles F. Fretz 22,987,795 315,777
Harold R. Hiser, Jr. 23,024,472 279,100
Anne C. Hodsdon 23,024,472 279,100
Charles L. Ladner 23,024,472 279,100
Leo E. Linbeck, Jr. 23,024,472 279,100
Patricia P. McCarter 23,024,472 279,100
Steven R. Pruchansky 23,024,472 279,100
Richard S. Scipione 22,987,795 315,777
Norman H. Smith 23,024,472 279,100
John P. Toolan 23,024,472 279,100
NOTES
John Hancock Funds - U.S. Government Cash Reserve
[THIS PAGE INTENTIONALLY LEFT BLANK]
NOTES
John Hancock Funds - U.S. Government Cash Reserve
[THIS PAGE INTENTIONALLY LEFT BLANK]
A 1/2" x 1/2" John Hancock Funds logo in upper left hand corner of the
page. A box sectioned in quadrants with a triangle in upper left, a
circle in upper right, a cube in lower left and a diamond in lower
right. A tag line below reads "A Global Investment Management Firm."
101 Huntington Avenue, Boston, MA 02199-7603
Bulk Rate
U.S. Postage
PAID
Randolph, MA
Permit No. 75
This report is for the information of shareholders of the John Hancock
U.S. Government Cash Reserve. It may be used as sales literature when
preceded or accompanied by the current prospectus, which details
charges, investment objectives and operating policies.
A recycled logo in lower left hand corner with caption "Printed on
Recycled Paper." 430SA 11/96
1/97
