JOHN HANCOCK
Money Market
Funds
Prospectus
March 1, 2000
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Money Market Fund
U.S. Government Cash Reserve
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these funds or determined whether the information in
this prospectus is adequate and accurate. Anyone who indicates otherwise is
committing a federal crime.
[LOGO] JOHN HANCOCK FUNDS
A Global Investment Management Firm
<PAGE>
Contents
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A fund-by-fund summary of Money Market Fund 4
goals, strategies, risks,
performance and expenses. U.S. Government Cash Reserve 6
Policies and instructions for Your account
opening, maintaining and
closing an account in either Choosing a share class 8
money market fund. How sales charges are calculated 8
Opening an account 9
Buying shares 10
Selling shares 11
Transaction policies 13
Dividends and account policies 13
Additional investor services 14
Further information on both Fund details
money market funds.
Business structure 15
Financial highlights 16
For more information back cover
<PAGE>
Overview
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FUND INFORMATION KEY
Concise fund-by-fund descriptions begin on the next page. Each description
provides the following information:
[Clip Art] Goal and strategy The fund's particular investment goals and the
strategies it intends to use in pursuing those goals.
[Clip Art] Main risks The major risk factors associated with the fund.
[Clip Art] Past performance The fund's total return, measured year-by-year and
over time.
[Clip Art] Your expenses The overall costs borne by an investor in the fund,
including sales charges and annual expenses.
JOHN HANCOCK MONEY MARKET FUNDS
These funds seek current income and preservation of capital. Each fund invests
primarily in money market instruments, strives to maintain a stable $1 share
price and offers checkwriting for easy liquidity.
WHO MAY WANT TO INVEST
These funds may be appropriate for people who:
o require stability of principal
o are seeking a mutual fund for the money market portion of an asset
allocation portfolio
o need to "park" their money temporarily
o are investing emergency reserves
Money market funds may NOT be appropriate if you:
o want federal deposit insurance
o are seeking an investment that is likely to outpace inflation
o are investing for growth or maximum current income
RISKS OF MUTUAL FUNDS
Mutual funds are not bank deposits and are not insured or guaranteed by any
bank, government agency or the Federal Deposit Insurance Corporation. Because
you could lose money by investing in these funds, be sure to read all risk
disclosure carefully before investing.
THE MANAGEMENT FIRM
All John Hancock money market funds are managed by John Hancock Advisers, Inc.
Founded in 1968, John Hancock Advisers is a wholly owned subsidiary of John
Hancock Financial Services, Inc., and manages more than $30 billion in assets.
3
<PAGE>
Money Market Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks the maximum current income that is consistent with
maintaining liquidity and preserving capital. The fund intends to maintain a
stable $1 share price.
The fund invests only in dollar-denominated securities rated within the two
highest short-term credit categories and their unrated equivalents. These
securities may be issued by:
o U.S. and foreign companies
o U.S. and foreign banks
o U.S. and foreign governments
o U.S. agencies, states and municipalities
o International organizations such as the World Bank and the International
Monetary Fund
The fund may also invest in repurchase agreements based on these securities.
The fund maintains an average dollar-weighted maturity of 90 days or less, and
does not invest in securities with remaining maturities of more than 13 months.
In managing the portfolio, the management team searches aggressively for the
best values on securities that meet the fund's credit and maturity requirements.
The team tends to favor corporate securities and looks for relative yield
advantages between, for example, a company's secured and unsecured short-term
debt obligations.
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PORTFOLIO MANAGERS
Team of money market research analysts and portfolio managers
YIELD INFORMATION
For the fund's 7-day effective yield, call 1-800-225-5291
PAST PERFORMANCE
[Clip Art] The graph shows how the fund's total return has varied from year to
year, while the table shows performance over time This information may help
provide an indication of the fund's risks. On December 22, 1994, John Hancock
Advisers, Inc. became the investment adviser of the fund. The fund's total
returns for the previous periods during which the fund was advised by another
adviser are not shown. The average annual figures reflect sales charges; the
year-by-year figures do not, and would be lower if they did. All figures assume
dividend reinvestment. Past performance does not indicate future results.
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Class B year-by-year total returns -- calendar years
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1995 1996 1997 1998
3.77% 3.27% 3.97% 3.83%
1999 total return as of June 30: 1.61%
Best quarter: Q4, '97, 1.02%
Worst quarter: Q3, '96, 0.78%
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Average annual total returns-- for periods ending 12/31/98
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Life of Life of
1 year Class A Class B
Class A - began 9/12/95 4.71% 4.54% --
Class B - since 12/22/94 -1.17% -- 3.49%
Class C - began 5/1/98 -- -- --
4
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MAIN RISKS
[Clip Art] The value of your investment will be most affected by short-term
interest rates. If interest rates rise sharply, the fund could underperform its
peers or lose money.
An issuer of securities held by the fund could default or have its credit rating
downgraded.
Foreign investments carry additional risks, including inadequate or inaccurate
financial information and social or political upheavals.
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose
money by investing in the fund.
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YOUR EXPENSES
[Clip Art] Transaction expenses are charged directly to your account. Operating
expenses are paid from the fund's assets, and therefore are paid by shareholders
indirectly.
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Shareholder transaction expenses(+) Class A Class B Class C
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Maximum sales charge (load) on purchases
as a % of purchase price none none none
Maximum deferred sales charge (load)
as a % of purchase or sale price,
whichever is less none 5.00% 1.00%
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Annual operating expenses Class A Class B Class C
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Management fee 0.50% 0.50% 0.50%
Distribution and service (12b-1) fees 0.25% 1.00% 1.00%
Other expenses 0.36% 0.36% 0.36%
Total fund operating expenses 1.11% 1.86% 1.86%
Expense reduction (at least until 8/1/00)* 0.20% 0.10% 0.10%
Annual operating expenses 0.91% 1.76% 1.76%
The hypothetical example below shows what your expenses would be if you invested
$10,000 over the time frames indicated, assuming you reinvested all
distributions and that the average annual return was 5%. The example is for
comparison only, and does not represent the fund's actual expenses and returns,
either past or future.
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Expenses Year 1 Year 3 Year 5 Year 10
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Class A $ 93 $333 $ 592 $1,334
Class B - with redemption $679 $875 $1,197 $1,975
- without redemption $179 $575 $ 997 $1,975
Class C - with redemption $279 $575 $ 997 $2,172
- without redemption $179 $575 $ 997 $2,172
+ A $4.00 fee may be charged for wire redemptions.
* Reflects advisers agreement to limit maximum rate of management fee to 0.40%
and distributors agreement to limit 12b-1 fee on Class A shares to 0.15%
until at least 8/1/00.
FUND CODES
Class A
- ---------------------------------------
Ticker JHMXX
CUSIP 478031107
Newspaper --
SEC number 811-2485
JH fund number 44
Class B
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Ticker TSMXX
CUSIP 478031206
Newspaper --
SEC number 811-2485
JH fund number 144
Class C
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Ticker --
CUSIP 478031305
Newspaper --
SEC number 811-2485
JH fund number 544
5
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U.S. Government Cash Reserve
GOAL AND STRATEGY
[Clip Art] The fund seeks the maximum current income that is consistent with
maintaining liquidity and preserving capital. It invests substantially in
short-term U.S. government securities and seeks to maintain a stable $1 share
price.
The fund invests in securities that are issued or guaranteed as to principal and
interest by the U.S. government, its agencies or instrumentalities.
The fund may also invest in repurchase agreements based on these securities.
The fund maintains an average dollar-weighted maturity of 90 days or less, and
does not invest in securities with remaining maturity of more than 13 months.
In managing the portfolio, the management team searches aggressively for the
best values on securities that meet the fund's credit and maturity requirements.
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PORTFOLIO MANAGERS
Team of U.S. government securities research analysts and portfolio managers
YIELD INFORMATION
For the fund's 7-day effective yield, call 1-800-225-5291
MINIMUM INITIAL INVESTMENT: $20,000
PAST PERFORMANCE
[Clip Art] The graph shows how the fund's total return has varied from year to
year, while the table shows performance over time. This information may help
provide an indication of the fund's risks. On December 22, 1994, John Hancock
Advisers, Inc. became the investment adviser of the fund. The fund's total
returns for the previous periods during which the fund was advised by another
adviser are not shown. All figures assume dividend reinvestment. Past
performance does not indicate future results.
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Year-by-year total returns -- calendar years
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1995 1996 1997 1998
5.23% 4.82% 5.42% 5.20%
1999 total return as of June 30: 2.32%
Best quarter: Q4, '97, 1.35%
Worst quarter: Q2, '96, 1.13%
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Average annual total returns -- for periods ending 12/31/98
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Life of
1 year Class A
Class A - since 12/24/94 5.20% 5.18%
6
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will be most affected by short-term
interest rates. If interest rates rise sharply, the fund could underperform its
peers or lose money.
The U.S. government does not guarantee the market value or the current yield of
government securities.
Not all of the U.S. government securities are backed by the full faith and
credit of the U.S. government.
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose
money by investing in the fund.
================================================================================
YOUR EXPENSES
[Clip Art] Transaction expenses are charged directly to your account. Operating
expenses are paid from the fund's assets, and therefore are paid by shareholders
indirectly.
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Shareholder transaction expenses(+) Class A
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Maximum sales charge (load) on purchases
as a % of purchase price none
Maximum deferred sales charge (load)
as a % of purchase or sale price, whichever is less none
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Annual operating expenses Class A
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Management fee 0.50%
Distribution and service (12b-1) fees 0.15%
Other expenses 0.23%
Total fund operating expenses 0.88%
Expense reimbursement (at least until 8/1/00)* 0.53%
Net annual operating expenses 0.35%
The hypothetical example below shows what your expenses would be if you invested
$10,000 over the time frames indicated, assuming you reinvested all
distributions and that the average annual return was 5%. The example is for
comparison only, and does not represent the fund's actual expenses and returns,
either past or future.
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Expenses Year 1 Year 3 Year 5 Year 10
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Class A $36 $228 $436 $1,035
+ A $4.00 fee may be charged for wire redemptions.
* Reflects distributors agreement to suspend 12b-1 fee and advisers agreement
to limit expenses to 0.35% until at least 8/1/00.
FUND CODES
Class A
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Ticker TGVXX
CUSIP 41014N107
Newspaper --
SEC number 811-2485
JH fund number 43
7
<PAGE>
Your account
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CHOOSING A SHARE CLASS
Each share class has its own cost structure including a Rule 12b-1 plan that
allows it to pay fees for the sale, distribution and service of its shares. Your
financial represenative can help you decide which share class is best for you.
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Class A
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o No sales charges.
o Distribution and service (12b-1) fees of 0.15% for Money Market Fund and
0.00% for U.S. Government Cash Reserve (fees are net of reductions by the
distributor).
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Class B - for Money Market Fund only
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o No front-end sales charge.
o Distribution and service (12b-1) fees of 1.00%.
o A deferred sales charge, as described at right.
o Automatic conversion to Class A shares after eight years thus reducing
future annual expenses.
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Class C - for Money Market Fund only
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o No front-end sales charge.
o Distribution and service (12b-1) fees of 1.00%.
o A 1.00% contingent deferred sales charge on shares sold within one year of
purchase.
o No automatic conversion to Class A shares, so annual expenses continue at
the Class C level throughout the life of your investment.
For actual past expenses of each share class, see the fund-by-fund information
earlier in this prospectus.
Because 12b-1 fees are paid on an ongoing basis, Class B and Class C
shareholders will end up paying more expenses over the long term than Class A
shareholders.
Investors purchasing $1 million or more of Class B or Class C shares may want to
consider the lower operating expenses of Class A shares.
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HOW SALES CHARGES ARE CALCULATED
Class B and Class C Money Market Fund shares are offered at their net asset
value per share, without any initial sales charge. However, you may be charged a
contingent deferred sales charge (CDSC) on shares you sell within a certain time
after you bought them, as described in the tables below. There is no CDSC on
shares acquired through reinvestment of dividends. The CDSC is based on the
original purchase cost or the current market value of the shares being sold,
which-ever is less. The CDSCs are as follows:
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Money Market Fund Class B deferred charges
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Years after purchase CDSC on shares being sold
1st year 5.00%
2nd year 4.00%
3rd or 4th year 3.00%
5th year 2.00%
6th year 1.00%
After 6th year None
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Money Market Fund Class C deferred charges
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Years after purchase CDSC on shares being sold
1st year 1.00%
After 1st year none
All purchases made during a calendar month are counted as having been made on
the first day of that month.
CDSC calculations are based on the number of shares involved, not on the value
of your account. To keep your CDSC as low as possible, each time you place a
request to sell shares we will first sell any shares in your account that carry
no CDSC. If there are not enough of these to meet your request, we will sell
those shares that have the lowest CDSC.
For purposes of this CDSC, all purchases made during a calendar month are
counted as having been made on the first day of that month.
8 YOUR ACCOUNT
<PAGE>
CDSC waivers As long as Signature Services is notified at the time you sell, the
CDSC for Money Market Fund Class B and Class C shares will generally be waived
in the following cases:
o to make payments through certain systematic withdrawal plans
o to make distributions from a retirement plan
o because of shareholder death or disability
To utilize: if you think you may be eligible for a CDSC waiver, contact your
financial representative or Signature Services, or consult the SAI (see the back
cover of this prospectus).
Reinstatement privilege If you sell shares of a John Hancock fund, you may
reinvest some or all of the proceeds in the same share class of any John Hancock
fund within 120 days without a sales charge as long as Signature Services is
notified before you reinvest. If you paid a CDSC when you sold your shares, you
will be credited with the amount of the CDSC. All accounts involved must have
the same registration.
To utilize: contact your financial representative or Signature Services.
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OPENING AN ACCOUNT
1 Read this prospectus carefully.
2 Determine how much you want to invest. The minimum initial investments are
as follows:
o Money Market Fund: $1,000
o non-retirement account: $1,000
o retirement account: $250
o Monthly Automatic Accumulation Plan (MAAP): $25 to open; you must
invest at least $25 a month
o U.S. Government Cash Reserve: $20,000
3 Complete the appropriate parts of the account application, carefully
following the instructions. You must submit additional documentation when
opening trust, corporate or power of attorney accounts. You must notify your
financial representative or Signature Services if this information changes.
For more details, please contact your financial representative or call
Signature Services at 1-800-225-5291.
4 Complete the appropriate parts of the account privileges application. By
applying for privileges now, you can avoid the delay and inconvenience of
having to file an additional application if you want to add privileges
later.
5 Make your initial investment using the table on the next page. You and your
financial representative can initiate any purchase, exchange or sale of
shares.
YOUR ACCOUNT 9
<PAGE>
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Buying shares
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Opening an account Adding to an account
By check
[Clip Art] o Make out a check for o Make out a check for
the investment amount, the investment amount
payable to "John payable to "John
Hancock Signature Hancock Signature
Services, Inc." Services, Inc."
o Deliver the check and o Fill out the
your completed detachable investment
application to your slip from an account
financial statement. If no slip
representative, or is available, include
mail them to Signature a note specifying the
Services (address fund name, your share
below). class, your account
number and the name(s)
in which the account
is registered.
o Deliver the check and
your investment slip
or note to your
financial
representative, or
mail them to Signature
Services (address
below).
By exchange
[Clip Art] o Call your financial o Log on to
representative or www.jhfunds.com to
Signature Services to process exchanges
request an exchange. between funds.
o Call EASI-Line for
automated service 24
hours a day using your
touch tone phone at
1-800-338-8080.
o Call your financial
representative or
Signature Services to
request an exchange.
By wire
[Clip Art] o Deliver your completed o Instruct your bank to
application to your wire the amount of
financial your investment to:
representative, or First Signature Bank
mail it to Signature & Trust
Services. Account # 900000260
Routing # 211475000
o Obtain your account
number by calling your Specify the fund name,
financial your share class, your
representative or account number and the
Signature Services. name(s) in which the
account is registered.
o Instruct your bank to Your bank may charge a
wire the amount of fee to wire funds.
your investment to:
First Signature Bank o To receive the
& Trust dividend for the same
Account # 900000260 day you sell, your
Routing # 211475000 order must be accepted
after 12 noon Eastern
Specify the fund name, Time that day.
your choice of share
class, the new account
number and the name(s) in
which the account is
registered. Your bank may
charge a fee to wire funds.
By Internet
[Clip Art] See "By exchange" and "By o Verify that your bank
wire." or credit union is a
member of the
Automated Clearing
House (ACH) system.
o Complete the "Bank
Information" section
on your account
application.
o Log on to
www.jhfunds.com to
initiate purchases
using your authorized
bank account.
By phone
[Clip Art] See "By exchange" and "By o Verify that your bank
wire." or credit union is a
member of the
Automated Clearing
House (ACH) system.
o Complete the "Bank
Information" section
on your account
application.
o Call EASI-Line for
automated service 24
hours a day using your
touch tone phone at
1-800-338-8080.
o Call your financial
representative or
Signature Services
between 8 A.M. and 4
P.M. Eastern Time on
most business days.
To open or add to an account using the Monthly Automatic
Accumulation Program, see "Additional investor services."
10 YOUR ACCOUNT
<PAGE>
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Selling shares
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Designed for To sell some or all of your shares
By letter
[Clip Art] o Accounts of any type. o Write a letter of
instruction or
o Sales of any amount. complete a stock power
indicating the fund
name, your share
class, your account
number, the name(s) in
which the account is
registered and the
dollar value or number
of shares you wish to
sell.
o Include all signatures
and any additional
documents that may be
required (see next
page).
o Mail the materials to
Signature Services.
o A check will be mailed
to the name(s) and
address in which the
account is registered,
or otherwise according
to your letter of
instruction.
By Internet
[Clip Art] o Most accounts. o Log on to
www.jhfunds.com to
o Sales of up to initiate redemptions
$100,000. from your funds.
By phone
[Clip Art] o Most accounts. o Call EASI-Line for
automated service 24
o Sales of up to hours a day using your
$100,000. touch tone phone at
1-800-338-8080.
o Call your financial
representative or
Signature Services
between 8 A.M. and 4
P.M. Eastern Time on
most business days.
By wire or electronic funds transfer (EFT)
[Clip Art] o Requests by letter to o To verify that the
sell any amount. Internet or telephone
redemption privilege
o Requests by internet is in place on an
or phone to sell up to account, or to request
$100,000. the form to add it to
an existing account,
call Signature
Services.
o Amounts of $1,000 or
more will be wired on
the next business day.
A $4 fee will be
deducted from your
account.
o To receive the o Amounts of less than
dividend for the same $1,000 may be sent by
day you sell, your EFT or by check. Funds
order must be accepted from EFT transactions
after 12 noon Eastern are generally
Time that day. available by the
second business day.
Your bank may charge a
fee for this service.
By exchange
[Clip Art] o Accounts of any type. o Obtain a current
prospectus for the
o Sales of any amount. fund into which you
are exchanging by
Internet or by calling
your financial
representative or
Signature Services.
o Log on to
www.jhfunds.com to
process exchanges
between your funds.
o Call EASI-Line for
automated service 24
hours a day using your
touch tone phone at
1-800-338-8080.
o Call your financial
representative or
Signature Services to
request an exchange.
By check
[Clip Art] o Any account with o Request checkwriting
checkwriting on your account
privileges. application.
o Sales of over $100. o Verify that the shares
to be sold were
purchased more than 10
days earlier or were
purchased by wire.
o Write a check for any
amount over $100.
To sell shares through a systematic withdrawal plan,
see "Additional investor services."
YOUR ACCOUNT 11
<PAGE>
Selling shares in writing In certain circumstances, you will need to make your
request to sell shares in writing. You may need to include additional items with
your request, unless they were previously provided to Signature Services and are
still accurate. These items are shown in the table below. You may also need to
include a signature guarantee, which protects you against fraudulent orders. You
will need a signature guarantee if:
o your address of record has changed within the past 30 days
o you are selling more than $100,000 worth of shares
o you are requesting payment other than by a check mailed to the address of
record and payable to the registered owner(s)
You will need to obtain your signature guarantee from a member of the Signature
Guarantee Medallion Program. Most brokers and securities dealers are members of
this program. A notary public CANNOT provide a signature guarantee.
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Seller Requirements for written requests
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[Clip Art]
Owners of individual, joint, sole o Letter of instruction.
proprietorship, UGMA/UTMA
(custodial accounts for minors) or o On the letter, the signatures
general partner accounts. and titles of all persons
authorized to sign for the
account, exactly as the account
is registered.
o Signature guarantee if
applicable (see above).
Owners of corporate or association o Letter of instruction.
accounts.
o Corporate resolution, certified
within the past 12 months, or a
business/organization
certification form.
o On the letter and the
resolution, the signature of the
person(s) authorized to sign for
the account.
o Signature guarantee if
applicable (see above).
Owners or trustees of trust o Letter of instruction.
accounts.
o On the letter, the signature(s)
of the trustee(s).
o Copy of the trust document
certified within the past 12
months or a trust certification
form.
o Signature guarantee if
applicable (see above).
Joint tenancy shareholders with o Letter of instruction signed by
rights of survivorship whose surviving tenant.
co-tenants are deceased.
o Copy of death certificate.
o Signature guarantee if
applicable (see above).
Executors of shareholder estates. o Letter of instruction signed by
executor.
o Copy of order appointing
executor, certified within the
past 12 months.
o Signature guarantee if
applicable (see above).
Administrators, conservators, o Call 1-800-225-5291 for
guardians and other sellers or instructions.
account types not listed above.
----------------------------------------
Address:
John Hancock Signature Services, Inc.
1 John Hancock Way, Suite 1000
Boston, MA 02217-1000
Phone Number: 1-800-225-5291
Or contact your financial representative
for instructions and assistance.
----------------------------------------
12 YOUR ACCOUNT
<PAGE>
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TRANSACTION POLICIES
Valuation of shares The net asset value per share (NAV) for each fund and class
is determined twice each business day at 12 noon and at the close of regular
trading on the New York Stock Exchange (typically 4 P.M. Eastern Time), by
dividing a class's net assets by the number of its shares outstanding. To help
the fund maintain its $1 constant share price, portfolio investments are valued
at cost, and any discount or premium created by market movements is amortized to
maturity.
Buy and sell prices Investors buy and sell all shares at NAV. When you sell
Class B or Class C shares, the deferred sales charge may be subtracted, as
described earlier.
Execution of requests Each fund is open on those days when the New York Stock
Exchange is open, typically Monday through Friday. Buy and sell requests are
executed at the next NAV to be calculated (normally $1) after Signature Services
receives your request in good order.
At times of peak activity, it may be difficult to place requests by phone.
During these times, consider using EASI-Line, accessing www.jhfunds.com, or
sending your request in writing.
In unusual circumstances, any fund may temporarily suspend the processing of
sell requests, or may postpone payment of proceeds for up to three business days
or longer, as allowed by federal securities laws.
Telephone transactions For your protection, telephone requests may be recorded
in order to verify their accuracy. Also for your protection, telephone
transactions are not permitted on accounts whose names or addresses have changed
within the past 30 days. Proceeds from telephone transactions can only be mailed
to the address of record.
Exchanges You may exchange shares of one John Hancock fund for shares of the
same class of any other. The registration for both accounts involved must be
identical. If no sales charge was paid on Class A shares, you will pay the sales
charge imposed by the new fund. Otherwise, your Class A shares will be exchanged
without a sales charge. Class B and Class C shares will continue to age from the
original date and will retain the same CDSC rate as they had before the
exchange, except that the rate will change to the new fund's rate if that rate
is higher. A CDSC rate that has increased will drop again with a future exchange
into a fund with a lower rate.
To protect the interests of other investors in the fund, a fund may cancel the
exchange privileges of any parties that, in the opinion of the fund, are using
market timing strategies or making more than seven exchanges per owner or
controlling party per calendar year. A fund may also refuse any exchange order.
A fund may change or cancel its exchange policies at any time, upon 60 days'
notice to its shareholders.
Certificated shares All money market funds shares are electronically recorded.
Certificated shares are not available.
Sales in advance of purchase payments When you place a request to sell shares
for which the purchase money has not yet been collected, the request will be
executed in a timely fashion, but the fund will not release the proceeds to you
until your purchase payment clears. This may take up to ten business days after
the purchase.
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DIVIDENDS AND ACCOUNT POLICIES
Account statements In general, you will receive account statements as follows:
o after every transaction (except a dividend reinvestment) that affects your
account balance
o after any changes of name or address of the registered owner(s)
o in all other circumstances, every quarter
Every year you should also receive, if applicable, a Form 1099 tax information
statement, mailed by January 31.
Dividends The funds generally declare dividends daily and pay them monthly. Most
of these funds' dividends are income dividends. Purchases by wire or other
federal funds that are accepted before 12 noon Eastern Time will receive the
dividend declared that day. Other orders, including those that are not
accompanied by federal funds, will begin receiving dividends the following day.
Redemption orders accepted before 12 noon Eastern Time will not receive that
day's dividends.
Dividend reinvestments Most investors have their dividends reinvested in
additional shares of the same fund and class. If you choose this option, or if
you do not indicate any choice, your dividends will be reinvested on the
dividend record date. Alternatively, you can choose to have a check for your
dividends mailed to you. However, if the check is not deliverable, your
dividends will be reinvested.
YOUR ACCOUNT 13
<PAGE>
Taxability of dividends As long as a fund meets the requirements for being a
tax-qualified regulated investment company, which each fund has in the past and
intends to in the future, it pays no federal income tax on the earnings it
distributes to shareholders.
Consequently, dividends you receive from a money market fund, whether reinvested
or taken as cash, are generally considered taxable as ordinary income. Some
dividends paid in January may be taxable as if they had been paid the previous
December.
The Form 1099 that is mailed to you every January details your dividends and
their federal tax category, although you should verify your tax liability with
your tax professional.
Taxability of transactions Any time you sell or exchange shares, it is
considered a taxable event for you. However, as long as a fund maintains a
stable share price, you will not have a gain or loss on shares you sell or
exchange.
Small accounts (non-retirement only) If you draw down a non-retirement account
so that its total value is less than $1,000, you may be asked to purchase more
shares within 30 days. If you do not take action, your fund may close out your
account and mail you the proceeds. Alternatively, Signature Services may charge
you $10 a year to maintain your account. You will not be charged a CDSC if your
account is closed for this reason, and your account will not be closed if its
drop in value is due to fund performance or the effects of sales charges.
Year 2000 compliance The adviser and the funds' service providers are taking
steps to address any year 2000-related computer problems. However, there is some
risk that these problems could disrupt the issuers in which the funds invest,
the funds' operations or financial markets generally.
- --------------------------------------------------------------------------------
ADDITIONAL INVESTOR SERVICES
Monthly Automatic Accumulation Program (MAAP) MAAP lets you set up regular
investments from your paycheck or bank account to the John Hancock fund(s) of
your choice. You determine the frequency and amount of your investments, and you
can terminate your program at any time. To establish:
o Complete the appropriate parts of your accou nt application.
o If you are using MAAP to open an account, make out a check ($25 minimum
except U.S. Government Cash Reserve) for your first investment amount payable
to "John Hancock Signature Services, Inc." Deliver your check and application
to your financial representative or Signature Services.
Systematic withdrawal plan This plan may be used for routine bill payments or
periodic withdrawals from your account. To establish:
o Make sure you have at least $5,000 worth of shares in your account.
o Make sure you are not planning to invest more money in this account (buying
shares during a period when you are also selling shares of the same fund is
not advantageous to you).
o Specify the payee(s). The payee may be yourself or any other party, and there
is no limit to the number of payees you may have, as long as they are all on
the same payment schedule.
o Determine the schedule: monthly, quarterly, semi-annually, annually or in
certain selected months.
o Fill out the relevant part of the account application. To add a systematic
withdrawal plan to an existing account, contact your financial representative
or Signature Services.
Retirement plans John Hancock Funds offers a range of retirement plans,
including traditional, Roth and Education IRAs, SIMPLE plans, SEPs, 401(k) plans
and other pension and profit-sharing plans. Using these plans, you can invest in
any John Hancock fund (except tax-free income funds) with a low minimum
investment of $250 or, for some group plans, no minimum investment at all. To
find out more, call Signature Services at 1-800-225-5291.
14 YOUR ACCOUNT
<PAGE>
Fund details
- --------------------------------------------------------------------------------
BUSINESS STRUCTURE
The diagram below shows the basic business structure used by the John Hancock
money market funds. The funds' board of trustees oversees the funds' business
activities and retains the services of the various firms that carry out the
funds' operations.
The trustees of the Money Market Fund have the power to change this fund's
investment goal without shareholder approval.
Management fees The management fees paid to the investment adviser by the John
Hancock money market funds last year are as follows:
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Fund % of net assets
- --------------------------------------------------------------------------------
Money Market 0.40%
U.S. Government Cash Reserve 0.12%
---------------------------------------------------
Shareholders
---------------------------------------------------
Distribution and
shareholder services
---------------------------------------------------
Financial services firms and
their representatives
Advise current and prospective share-
holders on their fund investments, often
in the context of an overall financial plan.
---------------------------------------------------
---------------------------------------------------
Principal distributor
John Hancock Funds, Inc.
Markets the funds and distributes shares
through selling brokers, financial planners
and other financial representatives
---------------------------------------------------
---------------------------------------------------
Transfer agent
John Hancock Signature Services, Inc.
Handles shareholder services, including record-
keeping and statements, distribution of dividends
and processing of buy and sell requests.
---------------------------------------------------
---------------------------------------------------
Investment adviser
John Hancock Advisers, Inc.
Manages the funds' business and
investment activities.
---------------------------------------------------
---------------------------------------------------
Custodian
State Street Bank and Trust Co.
Hold the funds' assets, settles all
portfolio trades and collects most of
the valuation data required for
calculating each fund's NAV.
---------------------------------------------------
Asset
management
---------------------------------------------------
Trustees
Oversee the funds' activities.
---------------------------------------------------
FUND DETAILS 15
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
These tables detail the performance of each fund's share classes, including
total return information showing how much an investment in the fund has
increased or decreased each year.
Money Market Fund
Figures audited by Ernst & Young LLP.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Class A - year ended: 10/95(1) 10/96 3/97(2) 3/98 3/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <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
Net investment income (loss) 0.01 0.05 0.02 0.05 0.04
Less distributions:
Dividends from net investment income (0.01) (0.05) (0.02) (0.05) (0.04)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Total investment return at net asset value(3) (%) 0.64(4) 4.56 1.80(4) 4.92 4.54
Total adjusted investment return at net asset value(3,7) (%) 0.54(4) 4.36 1.60(4) 4.72 4.34
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 20,942 262,475 359,453 312,762 373,634
Ratio of expenses to average net assets (%) 1.07(5) 1.17 1.10(5) 0.89 0.91
Ratio of adjusted expenses to average net assets (8) (%) 1.17(5) 1.37 1.30(5) 1.09 1.11
Ratio of net investment income (loss) to average net assets (%) 4.94(5) 4.41 4.44(5) 4.82 4.44
Ratio of adjusted net investment income to average net assets (8) (%) 4.84(5) 4.21 4.24(5) 4.62 4.24
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Class B - year ended: 10/94 10/95(6) 10/96 3/97(2) 3/98 3/99
- -----------------------------------------------------------------------------------------------------------------------------------
<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 (loss) 0.02 0.04 0.04 0.01 0.04 0.04
Less distributions:
Dividends from net investment income (0.02) (0.04) (0.04) (0.01) (0.04) (0.04)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total investment return at net asset value(3) (%) 1.87 4.07 3.71 1.45(4) 4.04 3.66
Total adjusted investment return at net asset value(3,7) (%) -- -- 3.61 1.35(4) 3.94 3.56
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 58,366 54,313 108,162 130,056 81,027 182,062
Ratio of expenses to average net assets (%) 2.06 1.92 2.00 1.96(5) 1.74 1.76
Ratio of adjusted expenses to average net assets(8) (%) -- -- 2.10 2.06(5) 1.84 1.86
Ratio of net investment income (loss) to average net assets (%) 1.97 3.96 3.58 3.60(5) 3.97 3.54
Ratio of adjusted net investment income (loss) to average net assets(8) (%) -- -- 3.48 3.50(5) 3.87 3.44
</TABLE>
16 FUND DETAILS
<PAGE>
- --------------------------------------------------------------------------------
Class C - year ended: 3/99(1)
- --------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of period $1.00
Net investment income (loss) 0.03
Less distributions:
Dividends from net investment income (0.03)
Net asset value, end of period $1.00
Total investment return at net asset value(3) (%) 3.29(4)
Total adjusted investment return at net asset value (3,7)(%) 3.19(4)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 1,347
Ratio of expenses to average net assets (%) 1.75(5)
Ratio of adjusted expenses to average net assets (8) (%) 1.85(5)
Ratio of net investment income (loss) to average net assets (%) 3.46(5)
Ratio of adjusted net investment income to average net assets (8) (%) 3.36(5)
(1) Class A shares began operations on September 12, 1995. Class C shares began
operations on May 1, 1998.
(2) Effective March 31, 1997, the fiscal year end changed from October 31 to
March 31.
(3) Total investment return assumes dividend reinvestment and does not reflect
the effect of sales charges.
(4) Not annualized.
(5) Annualized.
(6) On December 22, 1994, John Hancock Advisers, Inc. became the investment
adviser of the fund.
(7) An estimated total return calculation that does not take into consideration
fee reductions by the adviser during the periods shown.
(8) Unreimbursed, without fee reductions.
FUND DETAILS 17
<PAGE>
U.S. Government Cash Reserve
Figures audited by Ernst & Young LLP.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended: 5/94 5/95(1) 5/96 3/97(2) 3/98 3/99
- ------------------------------------------------------------------------------------------------------------------------------------
<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 (loss) 0.03 0.05 0.05 0.04 0.05 0.05
Less distributions:
Dividends from net investment income (0.03) (0.05) (0.05) (0.04) (0.05) (0.05)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total investment return at net asset value(3) (%) 3.04 5.07 5.59 4.37(4) 5.43 5.08
Total adjusted investment return at net asset value(3,5) (%) 2.59 4.54 4.69 3.78(4) 4.87 4.55
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 94,408 29,131 28,907 55,321 74,447 108,216
Ratio of expenses to average net assets (%) 0.35 0.35 0.35 0.35(7) 0.35 0.35
Ratio of adjusted expenses to average net assets(6) (%) 0.80 0.88 1.25 1.03(7) 0.91 0.88
Ratio of net investment income (loss) to average net assets (%) 2.96 4.79 5.41 5.15(7) 5.30 4.94
Ratio of adjusted net investment income (loss) to average net assets(6) (%) 2.51 4.26 4.51 4.47(7) 4.74 4.41
</TABLE>
(1) On December 22, 1994, John Hancock Advisers, Inc. became the investment
adviser of the fund.
(2) Effective March 31, 1997, the fiscal year end changed from May 31 to
March 31.
(3) Total investment return assumes dividend reinvestment.
(4) Not annualized.
(5) An estimated total return calculation that does not take into consideration
fee reductions by the adviser during the period shown.
(6) Unreimbursed, without fee reduction.
(7) Annualized.
18 FUND DETAILS
<PAGE>
<PAGE>
For more information
- --------------------------------------------------------------------------------
Two documents are available that offer further information on John Hancock money
market funds:
Annual/Semiannual Report to Shareholders
Includes financial statements, a discussion of the market conditions and
investment strategies that significantly affected performance, as well as the
auditors' report (in annual report only).
Statement of Additional Information (SAI)
The SAI contains more detailed information on all aspects of the funds. The
current annual report is included in the SAI.
A current SAI has been filed with the Securities and Exchange Commission and is
incorporated by reference into (is legally a part of) this prospectus.
To request a free copy of the current annual/semiannual report or the SAI,
please contact John Hancock:
By mail:
John Hancock Signature Services, Inc.
1 John Hancock Way, Suite 1000
Boston, MA 02217-1000
By phone: 1-800-225-5291
By EASI-Line: 1-800-338-8080
By TDD: 1-800-544-6713
On the Internet: www.jhfunds.com
Or you may view or obtain these documents from the SEC:
In person: at the SEC's Public Reference Room in Washington, DC. For access to
the Reference Room call 1-202-942-8090
By mail: Public Reference Section
Securities and Exchange Commission
Washington, DC 20549-0102
(duplicating fee required)
By electronic request:
[email protected]
(duplicating fee required)
On the Internet: www.sec.gov
[LOGO] John Hancock Funds John Hancock Funds, Inc.
A Global Investment Management Firm 101 Huntington Avenue
Boston MA 02199-7603
(C)2000 John Hancock Funds, Inc.
MNYPN 3/00
