<PAGE> 1
John Hancock Funds
CASH MANAGEMENT
FUND
FINAL REPORT
November 17, 1995
<PAGE> 2
John Hancock Funds - Cash Management Fund
TRUSTEES
Edward J. Boudreau, Jr.
Chairman
Dennis S. Aronowitz*
Richard P. Chapman, Jr.*
William J. Cosgrove*
Gail D. Fosler*
Bayard Henry *
Richard S. Scipione
Edward J. Spellman*
* 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
Thomas H. Drohan
Senior Vice President and
Secretary
James B. Little
Senior Vice President and
Chief Financial Officer
Susan S. Newton
Vice President, Assistant Secretary and
Compliance Officer
James J. Stokowski
Vice President and Treasurer
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
TRANSFER AGENT
John Hancock Investor Services Corporation
P.O. Box 9277
Boston, Massachusetts 02205-9277
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
<PAGE> 3
John Hancock Funds - Cash Management Fund
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
Final Report November 17, 1995 (Unaudited) *
- ----------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments, in money market instruments, at value - Note C:
Commercial paper (cost - $126,594,324) $ 126,594,324
Negotiable bank certificates of deposit (cost - $8,003,922) 8,003,922
Corporate interest-bearing obligations (cost - $67,537,202) 67,537,202
U.S. government obligations (cost - $2,000,152) 2,000,152
Joint repurchase agreement (cost - $36,371,000) 36,371,000
-------------
240,506,600
Cash 27,870
Interest receivable 1,716,811
-------------
Total Assets 242,251,281
------------------------------------------------------------------------------------
LIABILITIES:
Payable for shares repurchased 347,644
Payable to John Hancock Advisers, Inc. and affiliates -
Note B 130,091
Accounts payable and accrued expenses 122,378
-------------
Total Liabilities 600,113
------------------------------------------------------------------------------------
NET ASSETS:
Capital paid-in 241,651,168
-------------
Net Assets $ 241,651,168
====================================================================================
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE:
(based on 241,738,168 shares of beneficial interest
outstanding - unlimited number of shares authorized
with no par value) $1.00
==============================================================================================
<FN>
* The net assets of John Hancock Cash Management Fund, (the "Fund"), were merged into the John
Hancock Money Market Fund as of the close of business on November 17, 1995 and the Fund was
subsequently terminated. The Statement of Assets and Liabilities reflects the Fund's
position prior to the transfer of the net assets and the termination of the Fund. (See
Note A to the Notes to Financial Statements).
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 4
John Hancock Funds - Cash Management Fund
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the period October 1, 1995 to
November 17, 1995 (Unaudited) *
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest $1,945,531
----------
Expenses:
Transfer agent fee - Note B 156,640
Investment management fee - Note B 130,091
Merger expenses - Note D 87,000
Custodian fee 10,603
Legal fees 625
----------
Total Expenses 384,959
---------------------------------------------------------------------
Net Investment Income 1,560,572
---------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations $1,560,572
=====================================================================
<FN>
* The net assets of the Fund were merged into the John Hancock Money Market
Fund as of the close of business on November 17, 1995 and the Fund was
subsequently terminated. The Statement of Operations reflects the Fund's
position prior to the transfer of the net assets and the termination of the
Fund. (See Note A to the Notes to Financial Statements).
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 5
John Hancock Funds - Cash Management Fund
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
FOR THE PERIOD
OCTOBER 1, 1995 TO YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS: NOVEMBER 17, 1995 SEPTEMBER 30,
FROM OPERATIONS: (UNAUDITED) ** 1995
------------------------------------
<S> <C> <C>
Net investment Income $ 1,560,572 $ 12,380,461
------------------------------------
Net Increase in Net Assets
Resulting from Operations 1,560,572 12,380,461
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income
($0.0064 and $0.0501 per share,
respectively) (1,560,572) (12,380,461)
Distributions in excess of net
investment income ($0.0004 and none per
share, respectively) (87,000) -----
------------------------------------
Total Distributions to Shareholders (1,647,572) (12,380,461)
------------------------------------
FROM FUND SHARE TRANSACTIONS - NET* 3,607,282 14,231,512
------------------------------------
NET ASSETS:
Beginning of period 238,130,886 223,899,374
------------------------------------
End of period $ 241,651,168 $ 238,130,886
====================================
* ANALYSIS OF FUND SHARE TRANSACTIONS
AT $1 PER SHARE:
Shares sold $ 163,526,835 $ 859,281,131
Shares issued to shareholders in
reinvestment of distributions 1,530,165 11,155,429
------------------------------------
165,057,000 870,436,560
Less shares repurchased (161,449,718) (856,205,048)
------------------------------------
Net share increase $ 3,607,282 $ 14,231,512
====================================
<FN>
** The net assets of the Fund were merged into the John Hancock Money
Market Fund as of the close of business on November 17, 1995 and the Fund
was subsequently terminated. The Statement of Changes in Net Assets does not
reflect the merger of the net assets or termination of the Fund. (See Note A
to the Notes to Financial Statements).
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 6
John Hancock Funds - Cash Management Fund
<TABLE>
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding
throughout the period indicated, investment returns, key
ratios and supplemental data are listed as follows:
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE PERIOD
OCTOBER 1, 1995 TO
NOVEMBER 17, 1995 YEAR ENDED SEPTEMBER 30,
------------------ --------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
----------- ---- ---- ---- ---- ----
<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 0.01 0.05 0.03 0.02 0.04 0.06
Less Distributions:
Dividends from Net Investment Income (0.01) (0.05) (0.03) (0.02) (0.04) (0.06)
------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 (a) $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==============================================================================
Total Investment Return at Net Asset Value (c) 0.68% (b) 5.33% 2.95% 2.47% 3.77% 6.23%
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) $241,651 $238,131 $223,899 $183,709 $201,900 $250,847
Ratio of Expenses to Average Net Assets 0.91% * 0.89% 0.95% 0.98% 0.95% 0.90%
Ratio of Net Investment Income to Average Net Assets 5.05% * 5.03% 2.94% 2.45% 3.75% 6.08%
<FN>
* On an annualized basis.
(a) Net asset value per share, before the merger of assets to the John Hancock Money Market Fund, and
the termination of the Fund. (See Note A to the Notes to Financial Statements).
(b) Not annualized.
(c) Total investment return assumes dividend reinvestment.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 7
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
<TABLE>
SCHEDULE OF INVESTMENTS
NOVEMBER 17, 1995 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Par Value
Interest Quality (000's
Issuer - Description Rate Ratings* Omitted) Value
- -------------------- -------- ------- --------- -----
<S> <C> <C> <C> <C>
COMMERCIAL PAPER
BANKING (2.86%)
PNC Bank Corp.,
2/5/1996 5.770 Tier 1 $7,000 $6,911,366
----------
BANKING - FOREIGN (0.83%)
Swedish Export Credit Corp.,
12/5/1995 5.750 Tier 1 2,000 1,994,569
----------
BROKER SERVICES (11.82%)
Bear Stearns Cos., Inc.,
11/22/1995 5.750 Tier 1 4,400 4,397,189
Bear Stearns Cos., Inc.,
1/2/1996 5.750 Tier 1 7,600 7,545,375
Goldman Sachs Group., L.P.
11/20/1995 5.730 Tier 1 3,300 3,298,949
Goldman Sachs Group., L.P.
11/24/1995 5.770 Tier 1 8,000 7,992,307
Merrill Lynch & Co., Inc.,
1/31/1996 5.760 Tier 1 5,400 5,336,064
----------
28,569,884
----------
FINANCE (7.20%)
American Honda Finance Corp.,
12/6/1995 5.770 Tier 1 2,000 1,994,230
American Honda Finance Corp.,
12/8/1995 5.780 Tier 1 1,800 1,794,220
American Honda Finance Corp.,
1/26/1996 5.780 Tier 1 2,900 2,867,873
American Honda Finance Corp.,
1/30/1996 5.770 Tier 1 5,300 5,237,989
Associates Corporation of North America.
11/27/1995 5.800 Tier 1 5,500 5,492,025
----------
17,386,337
----------
MORTGAGE BANKING (5.33%)
Countrywide Funding Corp.,
11/20/1995 5.770 Tier 1 900 899,712
Countrywide Funding Corp.,
11/20/1995 5.810 Tier 1 6,000 5,998,063
Countrywide Funding Corp.,
12/6/1995 5.770 Tier 1 1,500 1,495,673
Countrywide Funding Corp.,
12/13/1995 5.770 Tier 1 4,200 4,183,171
Countrywide Funding Corp.,
12/14/1995 5.780 Tier 1 300 298,748
----------
12,875,367
----------
RETAIL STORES (8.21%)
Dayton Hudson Corp.,
12/12/1995 5.800 Tier 1 8,000 7,969,067
Sears Roebuck Acceptance Corp.,
11/29/1995 5.740 Tier 1 8,100 8,085,794
Sears Roebuck Acceptance Corp.,
11/30/1995 5.740 Tier 1 3,800 3,792,729
----------
19,847,590
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 8
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
<TABLE>
<CAPTION>
Par Value
Interest Quality (000's
Issuer - Description Rate Ratings* Omitted) Value
- -------------------- -------- ------- --------- -----
<S> <C> <C> <C> <C>
UTILITIES - ELECTRIC (8.14%)
Pacific Gas and Electric Co.,
11/28/1995 5.750 Tier 1 $7,800 $7,787,542
Public Service Electric and Gas Co.,
11/27/1995 5.760 Tier 1 8,000 7,988,480
Public Service Electric and Gas Co.,
11/28/1995 5.760 Tier 1 1,400 1,397,760
Public Service Electric and Gas Co.,
12/8/1995 5.770 Tier 1 2,500 2,491,986
-----------
19,665,768
-----------
UTILITIES - TELEPHONE (8.00%)
Bell Atlantic Financial Services.,
12/12/1995 5.750 Tier 1 4,000 3,984,667
GTE Corp.,
11/27/1995 5.830 Tier 1 3,800 3,794,462
GTE Corp.,
11/28/1995 5.800 Tier 1 1,100 1,098,228
GTE Corp.,
12/7/1995 5.780 Tier 1 1,500 1,495,424
GTE Corp.,
12/11/1995 5.790 Tier 1 5,000 4,981,504
GTE Northwest Inc.,
12/5/1995 5.740 Tier 1 4,000 3,989,158
-----------
19,343,443
-----------
TOTAL COMMERCIAL PAPER
(COST $126,594,324) (52.39%) 126,594,324
-------- -----------
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
U.S. BRANCHES OF FOREIGN BANKS (2.48%)
Deutsche Bank., AG
7/25/1996 6.050 Tier 1 3,000 3,000,000
Societe Generale N.A., Inc.,
1/8/1996 7.650 Tier 1 3,000 3,002,417
-----------
6,002,417
-----------
U.S. DOLLAR EURO CERTIFICATES (0.83%)
Union Bank of Switzerland.,
12/29/1995 7.510 Tier 1 2,000 2,001,505
-----------
TOTAL NEGOTIABLE BANK
CERTIFICATES OF DEPOSIT
(COST $8,003,922) (3.31%) 8,003,922
------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 9
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
<TABLE>
<CAPTION>
Par Value
Interest Quality (000's
Issuer - Description Rate Ratings* Omitted) Value
- -------------------- -------- ------- --------- -----
<S> <C> <C> <C> <C>
CORPORATE INTEREST BEARING OBLIGATIONS
AEROSPACE (0.83%)
Martin Marietta Corp.,
3/1/1996 8.500 Tier 1 $2,000 $2,013,516
----------
AUTOMOTIVE (7.88%)
Ford Motor Credit Co.,
12/1/1995 6.125 Tier 1 3,000 2,999,366
Ford Motor Credit Co.,
12/15/1995 9.125 Tier 1 1,850 1,852,999
Ford Motor Credit Co.,
5/15/1996 8.250 Tier 1 1,000 1,009,905
General Motors Acceptance Corp.,
2/1/1996 8.750 Tier 1 4,600 4,616,520
General Motors Acceptance Corp.,
3/13/1996 8.900 Tier 1 1,000 1,008,276
General Motors Acceptance Corp.,
3/13/1996 9.125 Tier 1 5,000 5,035,531
General Motors Acceptance Corp.,
3/20/1996 8.800 Tier 1 1,500 1,507,610
General Motors Acceptance Corp.,
7/17/1996 9.000 Tier 1 1,000 1,017,847
----------
19,048,054
----------
BANKING (8.28%)
Key Corp,
12/4/1995 5.400 Tier 1 3,000 2,999,135
Morgan Guaranty Trust Co., NY
10/3/1996 6.070 Tier 1 5,000 5,000,000
Morgan Guaranty Trust Co., NY
10/30/1996 6.000 Tier 1 4,000 4,000,000
NationsBank Corp.,
12/1/1995 5.375 Tier 1 1,000 999,722
NationsBank of Texas,
8/28/1996 6.150 Tier 1 7,000 7,000,000
----------
19,998,857
----------
CHEMICAL (1.24%)
Monsanto Corp.,
12/21/1995 8.750 Tier 1 3,000 3,005,026
----------
FINANCE (4.14%)
Household Finance Corp.,
12/1/1995 5.900 Tier 1 10,000 9,999,708
----------
INSURANCE (0.83%)
American General Finance Corp.,
1/31/1996 9.230 Tier 1 2,000 2,012,511
----------
RETAIL STORES (0.42%)
Sears Roebuck Acceptance Corp.,
12/15/1995 6.590 Tier 1 1,000 999,745
----------
TOBACCO (4.33%)
Philip Morris Cos., Inc.,
3/7/1996 8.450 Tier 1 3,950 3,977,798
Philip Morris Cos., Inc.,
7/1/1996 8.875 Tier 1 6,380 6,481,987
----------
10,459,785
----------
TOTAL CORPORATE INTEREST
BEARING OBLIGATIONS
(COST $67,537,202) (27.95%) 67,537,202
-------- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 10
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
<TABLE>
<CAPTION>
Par Value
Interest Quality (000's
Issuer - Description Rate Ratings* Omitted) Value
- -------------------- -------- ------- --------- -----
<S> <C> <C> <C> <C>
U.S.GOVERNMENT OBLIGATIONS
Governmental - U.S.Agencies (0.83%)
Federal Home Loan Bank,
9/26/1996 5.925 Tier 1 $2,000 $2,000,152
----------
TOTAL U.S.GOVERNMENT OBLIGATIONS
(COST $2,000,152) (0.83%) 2,000,152
---- ----------
</TABLE>
<TABLE>
<CAPTION>
INTEREST PAR VALUE
RATE (000's OMITED) MARKET VALUE
-------- -------------- ------------
<S> <C> <C> <C>
JOINT REPURCHASE AGREEMENT
Investment in a joint repurchase agreement
transaction with Lehman Bros., Inc.,
Dated 11-17-95, due 11-20-95
(Secured by U.S.Treasury Bonds 13.25%
due 5-15-14,and 9.25% due 2-15-16, and 5.77% $36,371 36,371,000
U.S.Treasury Notes, 7.125% due 9-30-99, ------------
7.875% due 11-15-99 and 6.25% due 2-15-03) - Note A
TOTAL JOINT REPURCHASE AGREEMENT
(COST $36,371,000) (15.05%) $ 36,371,000
-------- ------------
TOTAL INVESTMENTS (99.53%) $240,506,600
======== ============
<FN>
* Quality ratings indicate the categories of eligible securities, as defined by Rule 2a - 7 of the U.S.
Securities and Exchange Commission, owned by the Fund. Tier 1 securities are those that have
received the highest rating from at least two rating organizations, or one if only one has rated the security.
The percentage shown for each investment category is the total value of
that category expressed as a percentage of total net assets of the Fund.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
(UNAUDITED)
NOTE A -
ACCOUNTING POLICIES
John Hancock Cash Management Fund (the "Fund") is an open-end investment
management company, registered under the Investment Company Act of 1940.
On November 15, 1995, the shareholders approved a plan of reorganization
between the Fund and John Hancock Money Market Fund providing for the transfer
of all of the assets and liabilities of the Fund to Money Market Fund in
exchange solely for shares of beneficial interest of Money Market Fund. After
this transaction and as of the close of business on November 17, 1995, the Fund
was terminated. The financial statements presented herein reflect the position
of the Fund prior to the exchange of net assets and termination of the Fund.
Significant policies of the Fund were as follows:
VALUATION OF INVESTMENTS The Trustees had determined appropriate methods for
valuing portfolio securities. Accordingly, portfolio securities were 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 was 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 transaction. Aggregate
cash balances were invested in one or more repurchase agreements, whose
underlying securities were obligations of the U.S. government and/or its
agencies. The Fund's custodian bank received delivery of the underlying
securities for the joint account on the Fund's behalf. The Adviser was
responsible for ensuring that the agreement was fully collateralized at all
times.
INVESTMENT TRANSACTIONS Investment transactions were recorded as of the date of
purchase, sale or maturity. Net realized gains and losses on sales of
investments were determined on the identified cost basis.
FEDERAL INCOME TAX The Fund's policy was to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment companies. It
was not subject to federal income tax on taxable earnings which were
distributed to shareholders.
DIVIDENDS The Fund's net investment income was declared daily as dividends to
shareholders of record as of the close of business on the preceding day and
distributed monthly.
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
NOTE B -
MANAGEMENT FEE, ADMINISTRATIVE
SERVICES AND TRANSACTIONS WITH AFFILIATES
AND OTHERS
Under the investment management contract, the Fund paid a monthly management
fee to the Adviser for a continuous investment program equivalent, on an annual
basis, to the sum of (a) 0.40% of the first $250,000,000 of the Fund's average
daily net asset value, (b) 0.35% of the next $250,000,000, (c) 0.30% of the
next $250,000,000 and (d) 0.25% of the Fund's average daily net asset value in
excess of $750,000,000.
In the event normal operating expenses of the Fund, exclusive of certain
expenses prescribed by state law, were in excess of the most restrictive state
limit where the Fund was registered to sell shares of beneficial interest, the
fee payable to the Adviser was reduced to the extent of such excess and the
Adviser made additional arrangements necessary to eliminate any remaining
excess expenses. The limits were 2.5% of the first $30,000,000 of the Fund's
average daily net asset value, 2.0% of the next $70,000,000 and 1.5% of the
remaining average daily net asset value.
The Fund had a distribution agreement with John Hancock Funds, Inc. ("JH
Funds"), a wholly-owned subsidiary of the Adviser. Prior to January 1, 1995, JH
Funds was known as John Hancock Broker Distribution Services, Inc. In
addition, to compensate JH Funds for the services it provides as distributor of
the Fund, the Fund had adopted a Distribution Plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940. Accordingly, the Fund made payments to JH
Funds for distribution and service expenses,at an annual rate not to exceed
0.10% of the Fund's daily net assets to reimburse JH Funds for its
distribution/service costs. Up to a maximum of 0.05% may be service fees as
defined by the amended Rules of Fair Practice of the National Association of
Securities Dealers. Under the amended Rules of Fair Practice, curtailment of a
portion of the Fund's 12b-1 payments could occur under certain circumstances.
The Trustees had voted to suspend both the service fee and the sales fee of the
Plan indefinitely.
The Fund had a transfer agent agreement with John Hancock Investor
Services Corporation ("Investor Services"), a wholly-owned subsidiary of The
Berkeley Financial Group. Prior to January 1, 1995, Investor Services was known
as John Hancock Fund Services, Inc. Effective January 1, 1995, the Fund paid
transfer agent fees based on transaction volume and the number of shareholder
accounts. Prior to January 1, 1995, the Fund paid Investor Services a monthly
transfer agent fee equivalent, on an annual basis, to 0.45% of the Fund's
average daily net asset value, plus out of pocket expenses incurred by Investor
Services on behalf of the Fund for proxy mailings.
Messrs. Edward J. Boudreau, Jr. and Richard S. Scipione are directors
and/or officers of the Adviser, and/or its affiliates, as well as Trustees of
the Fund. The compensation of unaffiliated Trustees was borne by the Fund.
Effective with the fees paid for 1995, the unaffiliated Trustees could elect to
defer for tax purposes their receipt of this compensation under the John
Hancock Group of Funds Deferred Compensation Plan. The Fund made 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 were recorded on the Fund's books as an other asset. The deferred
compensation liability was marked to market on a periodic basis and income
earned by the investment was recorded on the Fund's books.
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK FUNDS - CASH MANAGEMENT FUND
NOTE C -
INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities, including discount earned on
investment securities, other than obligations of the U.S. government and its
agencies, for the period ended November 17, 1995, aggregated $946,173,925 and
$948,137,000, respectively. Purchases and proceeds from maturities of
obligations of the U.S. government and its agencies for the period ended
November 17, 1995, aggregated $2,000,156 and $2,000,000, respectively.
The cost of investments owned at November 17, 1995, for Federal income tax
purposes was $240,506,600.
NOTE D -
RECLASSIFICATION OF ACCOUNTS
During the period ended November 17, 1995, the Fund has reclassified capital
paid-in of $87,000 to distributions in excess of net investment income. This
represents the cumulative amount necessary to report these balances on a tax
basis as of November 17, 1995. These reclassifications, which have no impact on
the net asset value of the Fund, are primarily attributable to the treatment of
merger expenses in the computation of distributable income and capital gains
under federal tax rules versus generally accepted accounting principles.
