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John Hancock Funds
- --------------------------------------------------------------------------------
Global
Technology
Fund
SEMI-ANNUAL REPORT
June 30, 1996
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DIRECTORS
EDWARD J. BOUDREAU, JR.
THOMAS W. L. CAMERON
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
BARRY J. GORDON
President
ANNE C. HODSDON
Executive Vice 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
INVESTORS BANK & TRUST COMPANY
89 SOUTH STREET
BOSTON, MASSACHUSETTS 02111
TRANSFER AGENT
JOHN HANCOCK INVESTORS SERVICES CORPORATION
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
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 John Hancock Funds has introduced
the first in a series of new prospectuses. Covering the John Hancock growth
funds, the new prospectus made its debut on July 1 after being under development
for a year. It is simplified, using shorter, clearer language with a streamlined
design, and consoli dated, incorporating several funds with similar investment
objectives into one document. We are excited about our new prospectus because we
believe it is a bold but sensible step forward. And while it is easier to read,
it still complies with all federal and state guidelines.
[A 1 1/4" x 1" photo of Edward J. Boudreau Jr., Chairman and Chief Executive
Officer, flush right, next to second paragraph.]
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).
In the coming months, we will introduce similar prospectuses for our growth
and income, income, tax-free income, international/global and money market
funds. 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
2
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BY BARRY GORDON AND MARC KLEE, CO-PORTFOLIO MANAGERS
John Hancock Global
Technology Fund
Tech stocks came back to earth during period
but positive longer-term picture intact
After leading the stock market's bull run for the better part of 1995,
technology stocks displayed more of their characteristic volatility in the first
six months of 1996. They also produced tamer results. There were several factors
that made stock gains harder to come by this year. The semiconductor pullback,
which began in the fourth quarter of 1995 carried over into the first half of
1996, affected stock prices across many sectors in the technology group. But
first quarter earnings reports and good second quarter expectations caused fears
to abate, which led to a nice six-week rally beginning in April. More
nervousness emerged in late May and June, however, with expectations of weaker
third quarter earnings growth and the market's re-evaluation of the recent crop
of initial public offerings which brought some IPOs' high-flying stock prices
back down to more justifiable levels. A stronger dollar in the first half of the
year didn't help tech stocks, as many technology companies derive more than half
of their sales from overseas markets. A stronger dollar not only makes U.S
products more expensive to buy overseas, but also causes a decline in U.S.
company profits when foreign currency purchases are converted back into dollars.
Semiconductor exposure impacts performance
John Hancock Global Technology Fund felt the effects of the downturn in
semiconductor stocks, which occurred as supply began to catch up to demand. For
the six months ended June 30, 1996, the Fund's Class A and Class B shares posted
total returns of 2.78% and 2.45%, respectively, at net asset value. That
compared to the 7.89% return for the average science and technology fund,
according to Lipper Analytical
"... technology stocks displayed more of their characteristic volatility..."
[A 2 1/4"a x 3" photo of Barry Gordon and Mark Klee at bottom right. Photo
caption reads: "Barry Gordon (left) and Mark Klee (right), Co-Portfolio
Managers."]
3
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John Hancock Funds - Global Technology Fund
[Chart with heading "Top Five Common Stock Holdings" at top left hand column.
The chart lists five holdings: 1) Computer Associates International 5.1%; 2) UAL
Corp. 4.1%; 3) cisco Systems 4.1%; 4) Parametric Technology Corp. 3.1%; 5)
Thermo Electron Corp. 3%.]
As a percentage of net assets on June 30, 1996
- --------------------------------------------------------------------------------
"One area of emphasis is computer software..."
Services(1). See pages six and seven for longer-term performance information.
Even though we reduced the Fund's semiconductor holdings to 12% of net
assets by June 30, down from 30% a year ago, our exposure to the group still
caused the Fund's perfor mance to lag its peers. Indeed, semiconductors as a
group lost 15.29% in the last six months, as measured by the Philadelphia
Semiconductor Index. Even though it cost us some performance this period, we
held onto some semiconductor stocks and even added a few positions because we
believe there are parts of the subsector that will continue to do well. Spe
cifically we added to our position in Intel, the industry leader which is
increasing its distance from the competition. Some of the semiconductor stock
prices have also fallen to levels that make them very attractive based on
expectations for the second half of the year.
[Table entitled "Scorecard" at bottom of left hand column. The header for the
left column is "Investment"; the header for the right hand column is "Recent
performance...and what's behind the numbers." The first listing is "Parametric
Technology" followed by an up arrow and the phrase "Continued strong, consistent
earnings." The second listing is "Seagate Technology" followed by a flat arrow
and the phrase "Pricing pressures, recent acquisition impact stock." The third
listing is "Informix" followed by a down arrow and the phrase "Revamping sales
force hurts performance." Footnote below reads: `See "Schedule of Investments."
Investment holdings are subject to change."]
Software and networking companies dominate
The Fund's two main areas of focus continue to be software companies and
networking and communications companies. These two areas each accounted for
about one quarter of the Fund's net assets at the end of June.
One area of emphasis is computer software, led by client/server companies,
those that help companies convert their computer hardware into data depositories
that "serve" the desktop personal computer "client." Our largest holding
continues to be Computer Associates, whose stock price rose by 20% during the
period. We've also put increasing emphasis on the electronic design automation
industry, which is a play on the ever-increasing need for electronics
manufacturing companies to produce more products faster. One of our
long-standing favorites and a top holding is Parametric Technology, which makes
a host of software products to help engineers design products. It has displayed
consistent growth since going public in the early 1980s. Not only is the
company's market underpenetrated, but Parametric has also successfully broadened
its customer base by adding lower-priced, lesser functioning products to its
software line, such as their popular Pro Engineering, Jr. The Fund also holds
such other productivity-enhancing software companies as Synopsys and Integrated
Measurement Systems. Another growing software area we favor is relational
databases and data warehousing. Companies such as Informix, Oracle and Business
Objects provide software that not only sorts and stores data, but also allows
users to manipulate the data for use in telemarketing and sales, among other
things.
4
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John Hancock Funds - Global Technology Fund
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[Bar chart with heading "Fund Performance" at top of left hand column. Under the
heading is the footnote "For the six months ended June 30, 1996." The chart is
scaled in increments of 2% from top to bottom, with 8% at the top and 0% at the
bottom. Within the chart, there are three solid bars. The first represents the
2.78% total return for John Hancock Global Technology Fund: Class A. The second
represents the 2.45% total return for the John Hancock Global Technology Fund:
Class B. The third represents the 7.89% total return for the average science and
technology fund. A footnote below reads: "Total returns for John Hancock Global
Technology Fund are at net asset value all distributions reinvested. The average
science and technology fund is tracked by Lipper Analytical Services. See
following page for historical performance information."]
- --------------------------------------------------------------------------------
While Informix's earnings were disappointing during the period due to a
revamping of their sales force, we still believe in the company and added to our
position during the period. Oracle remains a top holding.
In the networking area, cisco Systems con ti nues to be our biggest holding
and a solid performer, as earnings momentum kept growing. The burgeoning use of
the Internet, world wide e-mail and the "intranet" -- communicating within
companies -- continues to fuel our interest in the networking and communications
areas. We sold one networking stock, Bay Networks, as it was going through some
growing pains and bought it back later at a lower price. Another networking
stock, Penril Datacom Networks, was a strong performer during the period when
the company sold most of its divisions to Bay Networks at a good profit for
shareholders. Another favorite and our largest foreign holding, Canadian-based
Newbridge Networks, rose by more than 50% during the period on the strength of
its new products for faster transmittal of electronic data.
Short-term caution, long-term optimism
Over the next several months, we expect to see continued volatility among
technology stocks and a return to the seasonal nature of tech nology companies,
something which has been largely absent for the last several years.
Traditionally, the third quarter marks a low point in revenues and earnings for
many tech companies because much of Europe shuts down in August. But our view
turns more optimistic when looking at the end of this year and early next year.
That's when we believe technology company earnings have the potential to
outperform the broader market as many new products by major companies such as
Microsoft, Intel and Informix are introduced. At this time, we haven't changed
our longer-term opinion that the technology industry is in the middle of a broad
secular advance that will continue through the decade, marked, as always, by
periodic swings in and out of investor favor. As long as investors realize the
inherent volatility of the sector and keep a long-term investment perspective,
we believe technology remains one of the strongest growth areas in the world.
"...we expect to see... a return to the seasonal nature of technology
companies..."
- ----------
1 Figures from Lipper Analytical Services include reinvested dividends and do
not take into account sales charges. Actual load-adjusted performance is
lower.
This commentary reflects the views of the portfolio managers through
the end of the Fund's period discussed in this report. Of course, the
managers' views are subject to change as market and other conditions
warrant.
International and sector investing involve special risks as
detailed in the prospectus.
5
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A LOOK AT PERFORMANCE
- --------------------------------------------------------------------------------
The tables on the right show the cumulative total returns and the average annual
total returns for the John Hancock Global Technology Fund. Total return is a
performance measure that equals the sum of all income and capital gains
distributions, assuming reinvestment of these distributions and the change in
the price of the Fund's net asset value per share. Performance figures include
the maximum applicable sales charge of 5% for Class A shares. The effect of the
maximum contingent deferred sales charge for Class B shares (maximum 5% and
declining to 0% over six years) is included in Class B performance. Performance
is affected by a 12b-1 plan, which commenced on January 1, 1994 for both Class A
and Class B shares. Different sales charge schedules for Class A shares were in
effect prior to March 1987 and are not reflected in the performance information.
Remember that all figures represent past performance and are no guarantee of how
the Fund will perform in the future. Also, keep in mind that the total return
and share price of the Fund's investments will fluctuate. As a result, your
Fund's shares may be worth more or less than their original cost, depending on
when you sell them.
- --------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURNS
- --------------------------------------------------------------------------------
For the period ended June 30, 1996
ONE FIVE MOST RECENT
YEAR YEARS TEN YEARS
---- ----- ---------
John Hancock
Global Technology Fund: Class A 3.25% 161.34% 224.72%
John Hancock
Global Technology Fund: Class B(1) 2.95% 60.91% N/A
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
For the period ended June 30, 1996
ONE FIVE MOST RECENT
YEAR YEARS TEN YEARS
---- ----- ---------
John Hancock
Global Technology Fund: Class A 3.25% 21.18% 11.40%
John Hancock
Global Technology Fund: Class B(1) 2.95% 21.05% N/A
Notes to Performance
(1) Class B shares started on January 3, 1994.
6
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WHAT HAPPENED TO A $10,000 INVESTMENT...
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The charts on the right show how much a $10,000 investment in the John Hancock
Global Technology Fund would be worth on June 30, 1996, assuming you had been
invested and have reinvested all distributions for the entire time periods
presented. For comparison, we've shown the same $10,000 investment in the
Standard & Poor's 500-Stock Index -- an unmanaged index that includes 500 widely
traded common stocks and is used often as a measure of stock market performance.
[Line chart with the heading Global Technology Fund: Class A, representing the
growth of a hypothetical $10,000 investment over the most recent ten years.
Within the chart are three lines.
The first line represents the value of the Standard & Poor's 500 Stock Index
and is equal to $43,986 as of June 30, 1996. The second line represents the
value of the hypothetical $10,000 investment made in the Global Technology Fund
on December 31, 1985, before sales charge, and is equal to $34,185 as of June
30, 1996. The third line represents the Global Technology Fund after sales
charge and is equal to $32,472 as of June 30, 1996.]
[Line chart with the heading Global Technology Fund: Class B, representing the
growth of a hypothetical $10,000 investment over the life of the fund. Within
the chart are three lines.
The first line represents the value of the hypothetical $10,000 investment made
in the Global Technology Fund on January 3, 1994, before contingent deferred
sales charge, and is equal to $16,391 as of June 30, 1996. The second line
represents the Global Technology Fund after contingent deferred sales charge and
is equal to $16,091 as of June 30, 1996. The third line represents the value of
the Standard & Poor's 500 Stock Index and is equal to $15,340 as of June 30,
1996.]
7
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FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
Statement of Assets and Liabilities
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Assets:
Investments at value - Note C:
Common stocks (cost - $121,699,613) ............... $184,674,284
Warrants (cost - $49,000 ) ........................ 253,750
Bonds (cost - $1,983,664) ......................... 1,999,249
Short-term notes (cost - $1,998,217) .............. 1,998,217
Joint repurchase agreement (cost - $20,154,000) ... 20,154,000
Corporate savings account ......................... 5,265
------------
209,084,765
Receivable for shares sold ......................... 409,359
Dividends receivable ............................... 18,900
Interest receivable ................................ 47,789
Other assets ....................................... 11,785
------------
Total Assets ..................... 209,572,598
------------------------------------------------------------
Liabilities:
Payable for shares repurchased ..................... 77,580
Payable to John Hancock Advisers, Inc. .............
and affiliates - Note B ........................... 200,734
Accounts payable and accrued expenses .............. 49,500
------------
Total Liabilities ................ 327,814
------------------------------------------------------------
Net Assets:
Capital paid-in .................................... 137,731,702
Accumulated net realized gain on investments ....... 9,211,162
Net unrealized appreciation of investments ......... 63,195,766
Net investment loss ................................ (893,846)
------------
Net Assets ....................... $209,244,784
============================================================
Net Asset Value Per Share:
(Based on net asset values and shares of beneficial
interest outstanding - 200 million shares authorized
with $0.20 per share par value, respectively)
Class A - $161,681,072/6,418,214 ................... $ 25.19
================================================================================
Class B - $47,563,712/1,928,055 .................... $ 24.67
================================================================================
Maximum Offering Price Per Share*
Class A - ($25.19 x 105.26%) ....................... $ 26.52
================================================================================
* On single retail sales of less than $50,000. On sales of $50,000 or more and
on group sales the offering price is reduced.
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 June 30, 1996. You'll also
find the net asset value and the maximum offering price per share as of that
date.
The Statement of Operations summarizes the Fund's investment income earned and
expenses incurred in operating the Fund. It also shows net gains for the period
stated.
Statement of Operations
Six months ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income:
Interest ......................................... $ 652,555
Dividends ........................................ 170,487
-----------
823,042
-----------
Expenses:
Investment management fee - Note B .............. 874,552
Distribution/service fee - Note B
Class A ....................................... 237,678
Class B ....................................... 208,233
Transfer agent fee - Note B ..................... 300,385
Administration fee - Note B ..................... 48,623
Registration and filing fees .................... 43,455
Custodian fee ................................... 21,198
Printing ........................................ 19,079
Trustees' fees .................................. 15,762
Auditing fee .................................... 15,204
Miscellaneous ................................... 4,484
Legal fees ...................................... 3,235
Less Management Fee Reduction - Note B .......... (75,000)
-----------
Total Expenses ................. 1,716,888
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Net Investment Loss ............ (893,846)
------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain on investments sold ............ 9,211,162
Change in net unrealized appreciation/depreciation
of investments .................................. (3,288,538)
-----------
Net Realized and Unrealized
Gain on Investments ............ 5,922,624
------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations ...... $ 5,028,778
============================================================
SEE NOTES TO FINANCIAL STATEMENTS.
8
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FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
Statement of Changes in Net Assets
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<TABLE>
<CAPTION>
SIXMONTHS ENDED
YEAR ENDED JUNE 30, 1996
DECEMBER 31, 1995 (UNAUDITED)
----------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From Operations:
Net investment loss ............................................................. $ (1,309,629) $ (893,846)
Net realized gain on investments sold ........................................... 13,461,306 9,211,162
Change in net unrealized appreciation/depreciation of investments ............... 13,067,131 (3,288,538)
------------- ------------
Net Increase in Net Assets Resulting from Operations ........................... 25,218,808 5,028,778
------------- ------------
Distributions to Shareholders:
Distributions from net realized gain on investments sold
Class A - ($1.6414 and none per share, respectively) ........................... (9,890,377) --
Class B - ($1.6414 and none per share, respectively) ........................... (2,261,154) --
------------- ------------
Total Distributions to Shareholders .......................................... (12,151,531) --
------------- ------------
From Fund Share Transactions-- Net* ............................................... 116,170,259 13,461,168
------------- ------------
Net Assets:
Beginning of period ............................................................. 61,517,302 190,754,838
------------- ------------
End of period (including net investment loss of none and $893,846 , respectively) $ 190,754,838 $209,244,784
============= ============
* Analysis of Fund Share Transactions:
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED JUNE 30, 1996
DECEMBER 31, 1995 (UNAUDITED)
------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
CLASS A
Shares sold .................................................. 3,475,266 $ 84,847,624 2,153,217 $ 53,667,632
Shares issued in reorganization - Note D ..................... 2,736,868 75,930,600 -- --
Shares issued to shareholders in reinvestment of distributions 326,658 8,057,488 -- --
--------- ------------ ------------ ------------
6,538,792 168,835,712 2,153,217 53,667,632
Less shares repurchased ...................................... (3,139,612) (76,326,307) (2,059,667) (51,291,789)
--------- ------------ ------------ ------------
Net increase ................................................ 3,399,180 $ 92,509,405 93,550 $ 2,375,843
========= ============ ============ ============
CLASS B
Shares sold .................................................. 2,136,672 $ 52,751,817 943,489 $ 23,439,837
Shares issued in reorganization - Note D ..................... 21,055 576,404 -- --
Shares issued to shareholders in reinvestment of distributions 83,607 2,026,634 -- --
--------- ------------ ------------ ------------
2,241,334 55,354,855 943,489 23,439,837
Less shares repurchased ...................................... (1,283,970) (31,694,001) (500,061) (12,354,512)
--------- ------------ ------------ ------------
Net increase ................................................ 957,364 $ 23,660,854 443,428 $ 11,085,325
========= ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
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FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
Financial Highlights
Selected data for each share of beneficial interest outstanding throughout the
period indicated, investment returns, key ratios, and supplemental data are as
follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
--------------------------------------------------- JUNE 30, 1996
1991 1992 1993 1994 1995 (UNAUDITED)
---- ---- ---- ---- ---- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Per Share Operating Performance
Net Asset Value, Beginning of Period ................ $ 12.44 $ 15.60 $ 14.94 $ 17.45 $ 17.84 $ 24.51
--------- -------- -------- -------- -------- --------
Net Investment Income (Loss) ........................ 0.05 (0.15) (0.21) (0.22)(1) (0.22)(1) (0.09)
Net Realized and Unrealized Gain on Investments,
Options and Foreign Currency Transactions ......... 4.11 1.00 4.92 1.87 8.53 0.77
--------- -------- -------- -------- -------- --------
Total from Investment Operations ................. 4.16 0.85 4.71 1.65 8.31 0.68
--------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income ................ (0.04) -- -- -- -- --
Distributions from Net Realized Gain on Investments
Sold, Options and Foreign Currency Transactions ... (0.96) (1.51) (2.20) (1.26) (1.64) --
--------- -------- -------- -------- -------- --------
Total Distributions .............................. (1.00) (1.51) (2.20) (1.26) (1.64) --
--------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ...................... $ 15.60 $ 14.94 $ 17.45 $ 17.84 $ 24.51 $ 25.19
========= ======== ======== ======== ======== ========
Total Investment Return at Net Asset Value (2) ...... 33.05% 5.70% 32.06% 9.62% 46.53% 2.78%(8)
Total Adjusted Investment Return at Net Asset
Value (2,3) ....................................... -- 5.53% -- -- 46.41% 2.74%(8)
Ratios and Supplemental Data
Net Assets, End of Period (000's omitted) ........... $ 31,580 $ 32,094 $41,749 $ 52,193 $155,001 161,681
Ratio of Expenses to Average Net Assets ............. 2.32% 2.05% 2.10% 2.16% 1.67% 1.55%(7)
Ratio of Adjusted Expenses to Average Net Assets (4) -- 2.22% -- -- 1.79% 1.62%(7)
Ratio of Net Investment Income (Loss) to Average
Net Assets ........................................ 0.34% (0.88%) (1.49%) (1.25%) (0.89%) (0.74%)(7)
Ratio of Adjusted Net Investment Loss to Average
Net Assets (4) .................................... -- (1.05%) -- -- (1.01%) (0.81%)(7)
Portfolio Turnover Rate ............................. 67% 76% 86% 67% 70% 34%
Fee Reduction Per Share ............................. -- $ 0.03 -- -- $ 0.02(1) $ 0.01
Average Broker Commission Rate (5) .................. N/A N/A N/A N/A N/A $ 0.07
</TABLE>
The Financial Highlights summarizes the impact of the following factors on a
single share for the period indi cated: net investment income, gains (losses),
dividends and total investment return of the Fund. It shows how the Fund's net
asset value for a share has changed since the end of the previous period.
Additionally, important rela tionships between some items presented in the
financial statements are expressed in ratio form.
SEE NOTES TO FINANCIAL STATEMENTS.
10
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FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
----------------------- JUNE 30, 1996
1994(6) 1995 (UNAUDITED)
------- ----- -------------
<S> <C> <C> <C>
CLASS B
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................... $ 17.24 $ 17.68 $ 24.08
---------- -------- ---------
Net Investment Loss ................................................ (0.35)(1) (0.39)(1) (0.16)
Net Realized and Unrealized Gain on Investments and Options ........ 2.05 8.43 0.75
---------- -------- ---------
Total from Investment Operations ................................. 1.70 8.04 0.59
---------- -------- ---------
Less Distributions:
Distributions from Net Realized Gain on Investments Sold and Options (1.26) (1.64) --
---------- -------- ---------
Net Asset Value, End of Period ..................................... $ 17.68 $ 24.08 $ 24.67
========== ======== =========
Total Investment Return at Net Asset Value (2) ..................... 10.02% 45.42% 2.45%(8)
Total Adjusted Investment Return at Net Asset Value (2,3) .......... -- 45.30% 2.41%(8)
Ratios and Supplemental Data
Net Assets, End of Period (000's omitted) .......................... $ 9,324 $ 35,754 $ 47,564
Ratio of Expenses to Average Net Assets ............................ 2.90%(7) 2.41% 2.25%(7)
Ratio of Adjusted Expenses to Average Net Assets (4) ............... -- 2.53% 2.32%(7)
Ratio of Net Investment Loss to Average Net Assets ................. (1.98%)(7) (1.62%) (1.43%)(7)
Ratio of Adjusted Net Investment Loss to Average Net Assets (4) .... -- (1.74%) (1.50%)(7)
Portfolio Turnover Rate ............................................ 67% 70% 34%
Fee Reduction Per Share ............................................ -- $ 0.03(1) $ 0.01
Average Broker Commission Rate (5) ................................. N/A N/A $ 0.07
</TABLE>
(1) Based on the average of the shares outstanding at the end of each
month.
(2) Assumes dividend reinvestment and does not reflect the effect of sales
charges.
(3) An estimated total return calculation that does not take into
consideration fee reductions by the adviser during the periods shown.
(4) Unreimbursed, without fee reduction.
(5) Per portfolio share traded. Required for fiscal years that began
September 1, 1995 or later.
(6) Class B shares commenced operations on January 3, 1994.
(7) Annualized.
(8) Not Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
11
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================================================================================
FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
Schedule of Investments
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
NUMBER
ISSUER, DESCRIPTION OF SHARES MARKET VALUE
- ------------------- --------- ------------
COMMON STOCKS
Aerospace/Aircraft (5.73%)
Boeing Co. ................................... 30,000 $ 2,613,750
Raytheon Co. ................................. 70,000 3,613,750
United Technologies Corp. .................... 50,000 5,750,000
-----------
11,977,500
-----------
Computer - Graphics (0.96%)
Diamond Multimedia Systems, Inc.* ............ 50,000 475,000
S3, Inc.* .................................... 125,000 1,539,062
-----------
2,014,062
-----------
Computer - Integrated Systems (7.61%)
Integrated Measurement Systems, Inc.* ........ 75,000 1,931,250
Oracle Corp.* ................................ 150,000 5,915,625
Parametric Technology Corp.* ................. 150,000 6,506,250
Symantec Corp.* .............................. 125,000 1,562,500
-----------
15,915,625
-----------
Computer - Local Networks (10.40%)
3Com Corp.* .................................. 80,000 3,660,000
Bay Networks, Inc.* .......................... 75,000 1,931,250
Cheyenne Software, Inc.* ..................... 200,000 3,850,000
cisco Systems, Inc.* ......................... 150,000 8,493,750
Madge Networks N.V. (Netherlands)* ........... 100,000 1,450,000
Xylan Corp.* ................................. 51,000 2,371,500
-----------
21,756,500
-----------
Computer - Memory Devices (2.74%)
Network Appliance, Inc.* ..................... 49,200 1,463,700
Seagate Technology, Inc.* .................... 95,000 4,275,000
-----------
5,738,700
-----------
Computer - Mini/Macro (2.61%)
Compaq Computer Corp.* ....................... 40,000 1,970,000
Hewlett-Packard Co. .......................... 35,000 3,486,875
-----------
5,456,875
-----------
Computer - Peripheral Equipment (2.91%)
Adaptec, Inc.* ............................... 100,000 4,737,500
Encad, Inc.* ................................. 80,000 1,360,000
-----------
6,097,500
-----------
Computer - Services (1.40%)
America Online, Inc.* ........................ 60,000 2,625,000
NOVA Corp.* .................................. 3,000 101,250
USCS International, Inc.* .................... 10,000 192,500
-----------
2,918,750
-----------
The Schedule of Investments is a complete list of all securities owned by Global
Technology Fund on June 30, 1996. It's divided into four main categories: common
stocks, warrants, bonds and short-term investments. The stocks, warrants and
bonds are further broken down by industry groups. Short-term investments, which
represent the Fund's "cash" position, are listed last.
NUMBER
ISSUER, DESCRIPTION OF SHARES MARKET VALUE
- ------------------- --------- ------------
Computer - Software (22.98%)
ANSYS, Inc.* ................................. 50,000 $ 656,250
Aspect Development, Inc.* .................... 2,900 73,950
Business Objects S.A. American
Depositary Receipts (France)* .............. 50,000 2,012,500
Computer Associates International, Inc. ...... 150,000 10,687,500
Electronic Arts, Inc.* ....................... 10,000 267,500
Electronics for Imaging, Inc.* .............. 30,000 2,081,250
HNC Software, Inc.* .......................... 50,000 2,312,500
Hummingbird Communications Ltd. ..............
(Canada)* ................................... 85,000 2,592,500
Informix Corp.* .............................. 200,000 4,500,000
MetaTools, Inc.* ............................. 60,000 1,410,000
Microsoft Corp.* ............................. 50,000 6,006,250
Novadigm, Inc.* .............................. 135,000 2,025,000
Open Market, Inc.* ........................... 25,000 609,375
Platinum Technology, Inc.* ................... 125,000 1,890,625
Prism Solutions, Inc.* ....................... 5,000 117,500
Raptor Systems, Inc.* ........................ 25,000 662,500
Sapient Corp.* ............................... 7,000 295,750
Segue Software, Inc.* ........................ 7,000 208,250
Software 2000 Inc.* .......................... 53,000 854,625
Spyglass, Inc.* .............................. 50,000 1,071,875
SS&C Technologies, Inc.* ..................... 4,500 68,625
Synopsys, Inc.* .............................. 100,000 3,975,000
Verity, Inc.* ................................ 50,000 1,437,500
VocalTec, Ltd. (Israel)* ..................... 2,500 21,875
Wang Laboratories, Inc.* ..................... 100,000 1,887,500
Worldtalk Communications Corp.* .............. 30,000 367,500
-----------
48,093,700
-----------
SEE NOTES TO FINANCIAL STATEMENTS.
12
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FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
NUMBER
ISSUER, DESCRIPTION OF SHARES MARKET VALUE
- ------------------- --------- ------------
Electronics (9.74%)
Applied Materials, Inc.* ................... 75,000 $ 2,287,500
Atmel Corp.* ............................... 75,000 2,259,375
General Motors Corp. (Class H) ............ 50,000 3,006,250
Intel Corp. ................................ 60,000 4,406,250
Lam Research Corp.* ........................ 30,000 780,000
LSI Logic Corp.* ........................... 125,000 3,250,000
Micron Technology, Inc. .................... 75,000 1,940,625
Ramtron International Corp.* ............... 214,007 1,498,049
Sawtek, Inc.* .............................. 27,500 948,750
------------
20,376,799
------------
Instruments - Scientific (2.98%)
Thermo Electron Corp.* ..................... 150,000 6,243,750
------------
Medical - Supplies (0.09%)
CompuMed, Inc.* ............................ 75,000 192,188
------------
Printing - Commercial (0.76%)
Applied Graphics Technologies, Inc.* ....... 100,000 1,587,500
------------
Telecommunications (10.63%)
American Mobile Satellite Corp., Inc.* ..... 75,000 1,162,500
Boston Communications Group, Inc.* ......... 10,000 165,000
Brooks Fiber Properties, Inc.* ............ 5,000 165,000
Cascade Communications Corp.* .............. 20,000 1,360,000
Intelect Communications System
(Bermuda)* ................................ 150,000 1,743,750
Loral Space & Communications System* ....... 60,000 817,500
MCI Communications Corp. ................... 75,000 1,921,875
Newbridge Networks Corp. (Canada)* ......... 80,000 5,240,000
Penril Datacom Networks, Inc.* ............ 150,000 2,025,000
Penril Datacom Networks, Inc.* (r) ......... 150,000 1,537,500
Premiere Technologies, Inc.* ............... 70,000 2,205,000
Primus Telecommunications
Group, Inc.* (r) .......................... 70,000 840,000
QUALCOMM, Inc.* ............................ 40,000 2,125,000
Telebase Systems, Inc.* (r) ................ 671,860 436,709
Worldcomm Systems, Inc.* (r) ............... 37,510 500,001
------------
22,244,835
------------
Transport - Airline (6.72%)
AMR Corp.* ................................. 60,000 5,460,000
UAL Corp.* ................................. 160,000 8,600,000
------------
14,060,000
------------
TOTAL COMMON STOCKS
(Cost $121,699,613) (88.26%) 184,674,284
------------ ------------
WARRANTS
Electronics (0.12%)
Ibis Technology Corp.*...................... 70,000 253,750
-----------
Medical (0.00%)
Scios Inc.* (r)............................. 36,346 0
-----------
TOTAL WARRANTS
(Cost $49,000) (0.12%) 253,750
------------ ------------
PAR VALUE
INTEREST S&P (000'S
RATE RATING OMITTED)
---- ------ --------
BONDS
Aerospace/Aircraft (0.09%) Aeronca, Inc.
Conv Sub Deb 01-31-00. .............. 12.50% NR $252 189,000
-----------
Pollution Control (0.28%)
Sanifill Inc.
Conv Sub Deb 03-01-06................ 5.00 BB- 500 585,000
-----------
Telecommunications (0.20%)
Tele 2000
Conv Note 04-14-97
(Peru) (R)........................... 9.75 NR 500 425,000
-----------
Transportation (0.38%)
Northwest Airlines
Sr Note 12-31-00......,.............. 12.09 BB- 297 306,009
Piedmont Aviation Inc.
Equip Tr Cert 1988
Ser F 03-28-09........,.............. 10.35 B+ 500 494,240
-----------
800,249
-----------
TOTAL BONDS
(Cost $1,983,664) (0.95%) 1,999,249
------- -----------
SEE NOTES TO FINANCIAL STATEMENTS.
13
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================================================================================
FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
PAR VALUE
INTEREST (000'S MARKET
ISSUER, DESCRIPTION RATE OMITTED) VALUE
- ------------------- ---- -------- -----
SHORT-TERM INVESTMENTS
Joint Repurchase Agreement (9.63%)
Investment in a joint repurchase
agreement transaction with
Toronto-Dominion Bank Ltd. Dated
06-28-96, Due 07-01-96 (secured
by U.S. Treasury Bills, 5.38%
Due 12-12-96 and 5.69% Due
06-26-97, by U.S Treasury Bonds,
7.25% Due 05-15-16 and 7.50% Due
11-15-16, and by U.S. Treasury
Notes, 4.375% - 7.75% Due
08-15-96 thru 11-15-01) Note A........ 5.50% $20,154 $ 20,154,000
-----------
Short-Term Notes (0.96%)
Merrill Lynch & Co., Inc.,
Due 07-01-96.......... 5.35 1,998 1,998,217
-----------
Corporate Savings Account (0.00%)
Investors Bank & Trust Company
Daily Interest Savings Account
Current Rate 4.75%.... 5,265
-----------
TOTAL SHORT-TERM INVESTMENTS (10.59%) 22,157,482
------ -----------
TOTAL INVESTMENTS (99.92%) $209,084,765
====== ===========
NOTES TO SCHEDULE OF INVESTMENTS
(R) This security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold, normally to qualified
institutional buyers, in transactions exempt from registration. See Note A of
the Notes to Financial Statements for valuation policy. Rule 144A securities
amounted to $425,000, as of June 30, 1996.
(r) Direct placement securities are restricted to resale. They have been valued
at fair value by the Trustees after considerations of restrictions as to
resale, financial condition and prospects of the issuer, general market
conditions and pertinent information in accordance with the Fund's By-Laws
and the Investment Company Act of 1940, as amended. The Fund has limited
rights to registration under the Securities Act of 1933 with respect to these
restricted securities. Additional information on each restricted security is
as follows:
MARKET
VALUE AS A
PERCENTAGE MARKET
ACQUISITION ACQUISITION OF FUND'S VALUE AT
SECURITY DATE COST NET ASSETS JUNE 30, 1996
- -------- ----------- ----------- ---------- ------------
Penril Datacom Networks,
Inc. Common Stock....... 02-09-96 $1,042,500 0.74% $1,537,500
Primus Telecommunications
Group, Inc. -
Common Stock............ 10-30-95 500,000
01-23-96 240,000 0.40 840,000
Scios Inc. - Warrants 06-28-91 35,000 0.00 0
Telebase Systems, Inc. -
Common Stock............ 11-14-91 940,604 0.21 436,709
Worldcomm Systems, Inc. -
Common Stock............ 03-30-95 500,000 0.24 500,001
* Non-income producing security
NR Not Rated by either Standard & Poor's or Moody's Investors Services.
Parenthetical disclosure of a foreign country in the security description
represents country of foreign issuer.
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
(UNAUDITED)
NOTE A --
ACCOUNTING POLICIES
John Hancock Technology Series, Inc. (the "Company") is a diversified open-end
management investment company, registered under the Investment Company Act of
1940. The Company consists of one series portfolio: John Hancock Global
Technology Fund (the "Fund"). The investment objective of the Fund is to achieve
long-term growth by investing principally in equity securities of companies that
rely extensively on technology in their product development or operations.
The Directors have authorized the issuance of multiple classes of shares of
the Fund, designated as Class A and Class B shares. The shares of each class
represent an interest in the same portfolio of investments of the Fund and have
equal rights to voting, redemptions, dividends, and liquidation, except that
certain expenses subject to the approval of the Directors, may be applied
differently to each class of shares in accordance with current regulations of
the Securities and Exchange Commission and the Internal Revenue Service.
Shareholders of a class which bears distribution/service expenses under terms of
a distribution plan, have exclusive voting rights regarding such distribution
plan.
Significant accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Securities in the Fund's portfolio are valued on the
basis of market quotations, valuations provided by independent pricing services
or, at fair value as determined in good faith in accordance with procedures
approved by the Trustees. Short-term debt investments maturing within 60 days
are valued at amortized cost which approximates market value.
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 and
to distribute all of its taxable income, including any net realized gain on
investment, to its shareholders. Therefore, no federal income tax provision is
required.
DIVIDENDS, INTEREST AND DISTRIBUTIONS Dividend income on investment securities
is recorded on the ex-dividend date. Interest income on investment securities is
recorded on the accrual basis.
The Fund records all distributions to shareholders from net investment
income and realized gains on the ex-dividend date. Such distributions are
determined in conformity with income tax regulations, which may differ from
generally accepted accounting principals. Dividends paid by the Fund with
respect to each class of shares will be calculated in the same manner, at the
same time and will be in the same amount, except for the effect of expenses that
may be applied differently to each class as explained previously.
CLASS ALLOCATIONS Income, common expenses and realized and unrealized gains
(losses) are calculated at the Fund level and allocated daily to each class of
shares based on the appropriate net assets of the respective classes.
Distribution/service fees if any, are calculated daily at the class level based
on the appropriate net assets of each class and the specific expense rate(s)
applicable to each class.
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.
DISCOUNT ON SECURITIES The Fund accretes discount from par value on investment
securities from either the date of issue or date of purchase over the life of
the security, as required by the Internal Revenue Code.
15
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
NOTE B --
MANAGEMENT FEE AND TRANSACTIONS WITH
AFFILIATES AND OTHERS
The Adviser is responsible for managing the Fund's investment business affairs
and overseeing the investment activities of the sub-adviser. The Adviser has a
sub-investment management contract with American Fund Advisors, Inc. (the
"Sub-Adviser"), under which the Sub-Adviser, subject to the review of the
Directors and the overall supervision of the Adviser, provides the Fund with
investment services and advice with respect to investment transactions. Under
the present investment management contract, the Fund pays a monthly management
fee to the Adviser, equivalent on an annual basis, to the sum of (a) 1.00% of
the first $100,000,000 of the Fund's average daily net asset value and (b) 0.75%
of the Fund's average daily net asset value in excess of $100,000,000. The
Adviser has reduced a portion of the management fee amounting to 0.15% of the
average daily net asset value of the first $100,000,000 of each series of the
Fund. Therefore, the Fund paid a monthly management fee to the Adviser,
equivalent on an annual basis, to the sum of 0.85% of the first $100,000,000 of
the Fund's average daily net asset value. The Adviser pays the Sub-Adviser a
monthly management fee, equivalent on an annual basis, to the sum of (a) 0.40%
of the first $100,000,000 of the Fund's average daily net asset value and (b)
40% of the investment advisory fee received by the Adviser on amounts over
$100,000,000. The Sub-Adviser has waived a portion of the management fee to
0.35% on the first $100,000,000 of average daily net assets. The Fund pays a
monthly administrative fee at the rate of $100,000 per annum to the Adviser for
performance of administrative services to the Fund.
In the event normal operating expenses of the Fund, exclusive of certain
expenses prescribed by state law, are in excess of the most restrictive state
limit where the Fund is registered to sell shares, the fee payable to the
Adviser will be reduced to the extent of such excess, and the Adviser will make
additional arrangements necessary to eliminate any remaining excess expenses.
The current limits are 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 has a distribution agreement with John Hancock Funds, Inc. ("JH
Funds"), a wholly owned subsidiary of the Adviser. For the period ended June 30,
1996, net sales charges received with regard to sales of Class A shares amounted
to $288,797. Out of this amount, $42,982 was retained and used for printing
prospectuses, advertising, sales literature and other purposes, $178,937 was
paid as sales commissions to unrelated broker-dealers and $66,878 was paid as
sales commissions to sales personnel of John Hancock Distributors, Inc.
("Distributors"), Tucker Anthony, Incorporated ("Tucker Anthony") and Sutro &
Co., Inc. ("Sutro"), all of which are broker dealers. The Adviser's indirect
parent, John Hancock Mutual Life Insurance Company, is the indirect sole
shareholder of Distributors and John Hancock Freedom Securities Corporation and
its subsidiaries, which include Tucker Anthony and Sutro. Class B shares which
are redeemed within six years of purchase will be subject to a contingent
deferred sales charge ("CDSC") at declining rates beginning at 5.0% of the
lesser of the current market value at the time of redemption or the original
purchase cost of the shares being redeemed. Proceeds from the CDSC are paid to
JH Funds and are used in whole or in part to defray its expenses related to
providing distribution related services to the Fund in connection with the sale
of Class B shares. For the period ended June 30, 1996, contingent deferred sales
charges paid to JH Funds amounted to $76,552.
In addition, to reimburse JH Funds for the services it provides as
distributor of shares of the Fund, the Fund has adopted a Distribution Plan with
respect to Class A and Class B 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 to exceed 0.30% of
Class A average daily net assets and 1.00% of Class B average daily net assets
to reimburse JH Funds for its distribution/service costs. Up to a maximum of
0.25% of such payments 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.
16
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Technology Fund
The Fund has a transfer agent agreement with John Hancock Investor Services
Corporation ("Investor Services"), a wholly-owned subsidiary of The Berkeley
Financial Group. The Fund pays Investor Services a fee based on the number of
shareholder accounts and certain out-of-pocket expenses.
Mr. Edward J. Boudreau, Jr., Mr. Richard S. Scipione and Ms. Anne C. Hodson
are directors and officers of the Adviser, and Mr. Barry J. Gordon is a director
and officer of the Sub-Adviser. Mr. Thomas W.L. Cameron is an affiliated
director of the Fund. The compensation of unaffiliated Directors 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. At June 30, 1996, the
Fund's investments to cover the deferred compensation liability had unrealized
appreciation of $760.
NOTE C --
INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of securities, other than obligations of the
U.S. government and its agencies and short-term securities, during the period
ended June 30, 1996, aggregated $67,890,581 and $62,366,059, respectively. There
were no purchases or sales of obligations of the U.S. government and its
agencies during the period ended June 30, 1996.
The cost of investments owned at June 30, 1996 (excluding the corporate
savings account), for federal income tax purposes was $145,884,494. Gross
unrealized appreciation and depreciation of investments aggregated $70,578,953
and $7,383,947, respectively, resulting in net unrealized appreciation of
$63,195,006.
NOTE D --
REORGANIZATION
On July 19, 1995, the shareholders of John Hancock National Aviation &Technology
Fund (JHNA&T) approved a plan of reorganization between JHNA&T and the Fund
providing for the transfer of substantially all of the assets and liabilities of
JHNA&T to the Fund in exchange solely for Class A and ClassB shares of the Fund.
The acquisition was accounted for as a tax free exchange of 2,736,868 Class
Ashares, and 21,055 Class B shares of John Hancock Global Technology Fund for
the net assets of JHNA&T, which amounted to $75,930,600 and $576,404 for Class A
and Class B shares, respectively, including $41,806,567 of unrealized
appreciation, after the close of business at July 28, 1995. The aggregate net
assets of the Fund and JHNA&T immediately before the acquisition were
$117,123,530 and $76,507,004, respectively. The aggregate net assets of the Fund
and JHNA&T immediately after the merger were $193,630,533.
17
<PAGE>
================================================================================
Additional Information
John Hancock Funds - Global Technology Fund
SHAREHOLDER MEETING
On June 26, 1996, a special meeting of John Hancock Global Technology Fund (the
"Fund") was held involving the election of trustees and certain other matters
concerning the Fund.
Specifically, shareholders first approved an Agreement and Plan of
Reorganization whereby the Fund will become a series fund of John Hancock Series
Trust, to take effect on December 2, 1996. The shareholder votes tallied were
4,199,121 FOR, 149,727 AGAINST and 339,984 ABSTAINING.
The shareholders next approved an amendment to the Fund's fundamental
investment restriction on the making of loans which increases the maximum amount
of portfolio securities lending permitted from 25% to 33 1/3% of total assets.
The shareholder votes tallied were 3,977,231 FOR, 373,776 AGAINST and 337,826
ABSTAINING.
Lastly, the following trustees were elected to serve until their respective
successors shall become duly elected and qualified, with the votes tabulated as
indicated:
WITHHELD
NAME OF TRUSTEE FOR AUTHORITY
- ------------- --- ---------
Edward J. Boudreau, Jr........... 5,247,235 149,481
Thomas W.L. Cameron.............. 5,244,608 152,107
James F. Carlin.................. 5,247,679 149,036
William H. Cunningham............ 5,246,871 149,845
Charles F. Fretz................. 5,246,748 149,968
Harold R. Hiser, Jr.............. 5,246,786 149,929
Anne C. Hodsdon.................. 5,247,750 148,965
Charles L. Ladner................ 5,247,355 149,361
Leo E. Linbeck, Jr............... 5,247,304 149,411
Patricia P. McCarter............. 5,246,722 149,994
Steven R. Pruchansky............. 5,247,927 148,788
Richard S. Scipione.............. 5,244,841 151,875
Norman H. Smith.................. 5,247,198 149,518
John P. Toolan................... 5,246,913 149,802
18
<PAGE>
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NOTES
John Hancock Funds - Global Technology Fund
19
<PAGE>
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[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."]
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Permit No. 75
This report is for the information of shareholders of the John Hancock Global
Technology Fund. It may be used as sales literature when pre ceded 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."]
830SA 6/96
8/96
