John Hancock
Sector Funds
Prospectus
December 11, 2000
--------------------------------------------------------------------------------
Financial Industries Fund
Health Sciences Fund
Real Estate Fund
Regional Bank Fund
Technology Fund
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(R)
--------------------------
JOHN HANCOCK FUNDS
<PAGE>
Contents
--------------------------------------------------------------------------------
A fund-by-fund summary Financial Industries Fund 4
of goals, strategies, risks,
performance and expenses. Health Sciences Fund 6
Real Estate Fund 8
Regional Bank Fund 10
Technology Fund 12
Policies and instructions for Your account
opening, maintaining and
closing an account in any Choosing a share class 14
sector fund. How sales charges are calculated 14
Sales charge reductions and waivers 15
Opening an account 16
Buying shares 17
Selling shares 18
Transaction policies 20
Dividends and account policies 20
Additional investor services 21
Further information on the Fund details
sector funds.
Business structure 22
Financial highlights 23
For more information back cover
<PAGE>
Overview
--------------------------------------------------------------------------------
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 SECTOR FUNDS
These funds seek long-term growth by investing primarily in stocks of a single
sector or group of industries. Each fund has its own strategy and its own risk
profile.
WHO MAY WANT TO INVEST
These funds may be appropriate for investors who:
o want to target a particular sector or group of industries
o have longer time horizons
o want to further diversify their portfolios
o are seeking funds for the aggressive growth portion of an asset allocation
portfolio
o are investing for retirement or other goals that are many years in the
future
Sector funds may NOT be appropriate if you:
o are investing with a shorter time horizon in mind
o are uncomfortable with an investment whose value may vary substantially
RISKS OF MUTUAL FUNDS
Mutual funds are not bank deposits and are not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. 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 sector 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>
Financial Industries Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks capital appreciation. To pursue this goal, the fund
normally invests at least 65% of assets in stocks of U.S. and foreign financial
services companies of any size. These companies include banks, thrifts, finance
companies, brokerage and advisory firms, real estate-related firms, insurance
companies and financial holding companies.
In managing the portfolio, the managers focus primarily on stock selection
rather than industry allocation.
In choosing individual stocks, the managers use fundamental financial analysis
to identify securities that appear comparatively undervalued. Given the
industry-wide trend toward consolidation, the managers also invest in companies
that appear to be positioned for a merger. The managers generally gather
firsthand information about companies from interviews and company visits.
The fund may invest in U.S. and foreign bonds, including up to 5% of net assets
in junk bonds (those rated below BBB/Baa and their unrated equivalents). It may
also invest up to 15% of assets in investment-grade short-term securities.
The fund may make limited use of certain derivatives (investments whose value is
based on indices, securities or currencies).
In abnormal market conditions, the fund may temporarily invest up to 80% of
assets in investment-grade short-term securities. In these and other cases, the
fund might not achieve its goal.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
================================================================================
PORTFOLIO MANAGERS
James K. Schmidt, CFA
---------------------------------------
Executive vice president of adviser
Joined fund team in 1996
Joined adviser in 1985
Began business career in 1979
Thomas M. Finucane
---------------------------------------
Vice president of adviser
Joined fund team in 1996
Joined adviser in 1990
Began business career in 1990
Thomas C. Goggins
---------------------------------------
Senior vice president of adviser
Joined fund team in 1998
Joined adviser in 1995
Began business career in 1981
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 (along with a broad-based
market index for reference). This information may help provide an indication of
the fund's risks. The average annual figures reflect sales charges; the
year-by-year and index figures do not, and would be lower if they did. All
figures assume dividend reinvestment. Past performance does not indicate future
results.
--------------------------------------------------------------------------------
Class A year-by-year total returns -- calendar years
--------------------------------------------------------------------------------
1997 1998 1999
37.76% 4.86% -1.07%
Best quarter: Q4 '98, 17.07%
Worst quarter: Q3 '98, -20.12%
--------------------------------------------------------------------------------
Average annual total returns -- for periods ending 12/31/99
--------------------------------------------------------------------------------
Life of Life of
1 year Class A Class B
Class A - began 3/14/96 -6.02% 18.47% --
Class B - began 1/14/97 -6.55% -- 10.58%
Class C - began 3/1/99 -- -- --
Index 21.03% 26.33% 26.47%
Index: Standard & Poor's 500 Stock Index, an unmanaged index of 500 stocks.
4
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will go up and down in response to stock
market movements. The fund's management strategy has a significant influence on
fund performance. Because the fund focuses on a single sector of the economy,
its performance depends in large part on the performance of that sector. As a
result, the value of your investment may fluctuate more widely than it would in
a fund that is diversified across sectors.
For instance, when interest rates fall or economic conditions deteriorate, the
stocks of banks and financial services companies could suffer losses. Also,
rising interest rates can reduce profits by narrowing the difference between
these companies' borrowing and lending rates.
Stocks of financial services companies as a group could fall out of favor with
the market, causing the fund to underperform funds that focus on other types of
stocks. In addition, if the managers' stock selection strategy does not perform
as expected, the fund could underperform its peers or lose money.
To the extent that the fund makes investments with additional risks, these risks
could increase volatility or reduce performance:
o Certain derivatives could produce disproportionate losses.
o In a down market, higher-risk securities and derivatives could become
harder to value or to sell at a fair price.
o Foreign investments carry additional risks, including potentially
unfavorable currency exchange rates, inadequate or inaccurate financial
information and social or political instability.
o Any bonds held by the fund could be downgraded in credit rating or go into
default. Bond prices generally fall when interest rates rise. This risk is
greater for longer maturity bonds. Junk bond prices can fall on bad news
about the economy, an industry or a company.
================================================================================
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.
--------------------------------------------------------------------------------
Shareholder transaction expenses(1) Class A Class B Class C
--------------------------------------------------------------------------------
Maximum sales charge (load) 5.00% 5.00% 2.00%
Maximum front-end sales charge (load)
on purchases as a % of purchase price 5.00% none 1.00%
Maximum deferred sales charge (load)
as a % of purchase or sale price,
whichever is less none(2) 5.00% 1.00%
--------------------------------------------------------------------------------
Annual operating expenses Class A Class B Class C
--------------------------------------------------------------------------------
Management fee 0.76% 0.76% 0.76%
Distribution and service (12b-1) fees 0.30% 1.00% 1.00%
Other expenses 0.33% 0.33% 0.33%
Total fund operating expenses 1.39% 2.09% 2.09%
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.
--------------------------------------------------------------------------------
Expenses Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------
Class A $634 $918 $1,222 $2,085
Class B - with redemption $712 $955 $1,324 $2,242
- without redemption $212 $655 $1,124 $2,242
Class C - with redemption $409 $748 $1,212 $2,497
- without redemption $310 $748 $1,212 $2,497
(1) A $4.00 fee will be charged for wire redemptions.
(2) Except for investments of $1 million or more; see "How sales charges are
calculated."
FUND CODES
Class A
---------------------------------------
Ticker FIDAX
CUSIP 409905502
Newspaper FinIndA
SEC number 811-3999
JH fund number 70
Class B
---------------------------------------
Ticker FIDBX
CUSIP 409905601
Newspaper FinIndB
SEC number 811-3999
JH fund number 170
Class C
---------------------------------------
Ticker FIDCX
CUSIP 409905874
Newspaper FinIndC
SEC number 811-3999
JH fund number 570
5
<PAGE>
Health Sciences Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks long-term growth of capital. To pursue this goal, the
fund normally invests at least 65% of assets in stocks of U.S. and foreign
health-care companies. These companies derive more than half of their revenues
from health-care related activities or commit more than half of their assets to
these activities. Because the fund is non-diversified, it may invest more than
5% of assets in securities of individual companies.
In managing the portfolio, the manager studies economic trends to allocate
assets among the following major categories:
o pharmaceuticals and biotechnology
o medical devices and analytical equipment
o health-care services
The manager also uses broad economic analysis to identify promising industries
within these categories.
The management team then uses fundamental financial analysis to identify
individual companies of any size that appear most attractive in terms of
earnings stability, growth potential and valuation. The team generally assesses
the senior management of companies through interviews and company visits. An
independent advisory board composed of scientific and medical experts provides
advice and consultation on health-care developments.
The fund may use certain derivatives (investments whose value is based on
indices, securities or currencies).
In abnormal market conditions, the fund may temporarily invest more than 35% of
assets in investment-grade short-term securities. In these and other cases, the
fund might not achieve its goal.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
================================================================================
PORTFOLIO MANAGER
Linda I. Miller, CFA
---------------------------------------
Vice president of adviser
Joined fund team in 1995
Joined adviser in 1995
Began business career in 1980
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 (along with a broad-based
market index for reference). This information may help provide an indication of
the fund's risks. The average annual figures reflect sales charges; the
year-by-year and index figures do not, and would be lower if they did. All
figures assume dividend reinvestment. Past performance does not indicate future
results.
--------------------------------------------------------------------------------
Class A year-by-year total returns -- calendar years
--------------------------------------------------------------------------------
1992 1993 1994 1995 1996 1997 1998 1999
18.36% 1.20% 8.85% 39.88% 6.50% 29.73% 19.49% -0.64%
Best quarter: Q2 '97, 23.14%
Worst quarter: Q1 '93, -18.85%
--------------------------------------------------------------------------------
Average annual total returns -- for periods ending 12/31/99
--------------------------------------------------------------------------------
Life of Life of
1 year 5 year Class A Class B
Class A - began 10/1/91 -5.60% 16.86% 17.59% --
Class B - began 3/7/94 -6.26% 16.99% -- 14.62%
Class C - began 3/1/99 -- -- -- --
Index 21.03% 28.54% 20.21% 24.27%
Index: Standard & Poor's 500 Stock Index, an unmanaged index of 500 stocks.
6
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will go up and down in response to stock
market movements.
The fund's management strategy has a significant influence on fund performance.
Because the fund focuses on a single sector of the economy, its performance
depends in large part on the performance of that sector. As a result, the value
of your investment may fluctuate more widely than it would in a fund that is
diversified across sectors.
Stocks of health-care companies as a group could fall out of favor with the
market, causing the fund to underperform funds that focus on other types of
stocks. In addition, if the managers' industry allocation or security selection
strategies do not perform as expected, the fund could underperform its peers or
lose money.
To the extent that the fund makes investments with additional risks, these risks
could increase volatility or reduce performance:
o If the fund invests heavily in a single issuer, its performance could
suffer significantly from adverse events affecting that issuer.
o Certain derivatives could produce disproportionate losses.
o Foreign investments carry additional risks, including potentially
unfavorable currency exchange rates, inadequate or inaccurate financial
information and social or political instability.
================================================================================
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.
--------------------------------------------------------------------------------
Shareholder transaction expenses(1) Class A Class B Class C
--------------------------------------------------------------------------------
Maximum sales charge (load) 5.00% 5.00% 2.00%
Maximum front-end sales charge (load)
on purchases as a % of purchase price 5.00% none 1.00%
Maximum deferred sales charge (load)
as a % of purchase or sale price,
whichever is less none(2) 5.00% 1.00%
--------------------------------------------------------------------------------
Annual operating expenses Class A Class B Class C
--------------------------------------------------------------------------------
Management fee 0.78% 0.78% 0.78%
Distribution and service (12b-1) fees 0.30% 1.00% 1.00%
Other expenses 0.52% 0.52% 0.52%
Total fund operating expenses 1.60% 2.30% 2.30%
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.
--------------------------------------------------------------------------------
Expenses Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------
Class A $655 $ 980 $1,327 $2,305
Class B - with redemption $733 $1,018 $1,430 $2,461
- without redemption $233 $ 718 $1,230 $2,461
Class C - with redemption $430 $ 811 $1,318 $2,709
- without redemption $331 $ 811 $1,318 $2,709
(1) A $4.00 fee will be charged for wire redemptions.
(2) Except for investments of $1 million or more; see "How sales charges are
calculated."
FUND CODES
Class A
---------------------------------------
Ticker JHGRX
CUSIP 410233308
Newspaper HthSciA
SEC number 811-4932
JH fund number 28
Class B
---------------------------------------
Ticker JHRBX
CUSIP 410233704
Newspaper HthSciB
SEC number 811-4932
JH fund number 128
Class C
---------------------------------------
Ticker JHRCX
CUSIP 410233852
Newspaper --
SEC number 811-4932
JH fund number 528
7
<PAGE>
Real Estate Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks long-term growth of capital. Income is a secondary
goal. To pursue these goals, the fund invests at least 65% of assets in
securities of real estate companies of any size. These include U.S. and foreign
companies in the businesses of owning, managing or marketing real estate;
companies in related industries, such as financing or construction; and
companies in other businesses that have at least half their assets in real
estate holdings.
The fund generally focuses on real estate investment trusts (REITs), which hold
real estate and mortgages. The fund invests in companies that are considered
fundamentally undervalued due to changing economic conditions, regional economic
factors or industry consolidation.
The fund may invest up to 20% of assets in junk bonds rated as low as BB and
their unrated equivalents, and up to 15% of assets in foreign securities. The
fund may invest up to 35% of assets in securities of issuers that are not
considered real estate companies.
At different times, the fund may emphasize different types of securities or
issuers, depending on its outlook for interest rates, real estate prices and
other factors.
The fund may use certain derivatives (investments whose value is based on
indices, securities or currencies), especially in managing its exposure to
interest rate risk. However, it does not intend to use them extensively.
In abnormal market conditions, the fund may temporarily invest more than 35% of
assets in investment-grade short-term securities. In these and other cases, the
fund might not achieve its goal.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
================================================================================
PORTFOLIO MANAGERS
James K. Schmidt, CFA
---------------------------------------
Executive vice president of adviser
Joined fund team in 1998
Joined adviser in 1985
Began business career in 1979
James J. McKelvey
---------------------------------------
Second vice president
Joined fund team in 1998
Joined adviser in 1997
Began business career in 1986
Thomas M. Finucane
---------------------------------------
Vice president of adviser
Joined fund team in 1998
Joined adviser in 1990
Began business career in 1990
Thomas C. Goggins
---------------------------------------
Senior vice president of adviser
Joined fund team in 1998
Joined adviser in 1995
Began business career in 1981
PAST PERFORMANCE
[Clip Art] The graph shows the fund's total return, while the table shows
performance over time along with a broad-based market index for reference. This
information may help provide an indication of the fund's risks. The average
annual figures reflect sales charges; the year-by-year and index figures do not,
and would be lower if they did. All figures assume dividend reinvestment. Past
performance does not indicate future results.
--------------------------------------------------------------------------------
Class A year-by-year total returns -- calendar year
--------------------------------------------------------------------------------
1999
2.38%
Best quarter: Q2 '99, 11.57%
Worst quarter: Q3 '99, -8.57%
--------------------------------------------------------------------------------
Average annual total returns -- for periods ending 12/31/99
--------------------------------------------------------------------------------
Life of
1 year Class A
Class A - began 9/30/98 -2.71% -1.84%
Class B - began 3/1/00 -- --
Class C - began 3/1/00 -- --
Index 1 21.03% 30.31%
Index 2 -4.55% -5.74%
Index 1: Standard & Poor's 500 Stock Index, an unmanaged index of 500 stocks.
Index 2: Morgan Stanley REIT Index, an unmanaged index consisting of the most
actively traded real estate investment trusts.
8
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will go up and down in response to
movements in real estate markets. Because the fund focuses on a single sector of
the economy, its performance depends in large part on the performance of that
sector.
The value of your investment may fluctuate more widely than it would in a fund
that is diversified across sectors. Securities of smaller companies are more
volatile than those of larger companies.
Because they are securities, REIT shares can fall in value when securities
markets fall or when there is an economic downturn. There is also the risk that
a REIT's value could fall if it is mismanaged, faces high tenant default risk or
is in danger of failing to meet certain IRS standards.
If the managers' securities selection strategies do not perform as expected, the
fund could underperform its peers or lose money.
To the extent that the fund makes investments with additional risks, these risks
could increase volatility or reduce performance:
o Certain derivatives could produce disproportionate losses.
o In a down market, higher-risk securities and derivatives could become
harder to value or to sell at a fair price.
o Foreign investments carry additional risks, including potentially
unfavorable currency exchange rates, inadequate or inaccurate financial
information and social or political instability.
o Any bonds held by the fund could be downgraded in credit quality or go
into default. In addition, bond prices generally fall when interest rates
rise; this risk is greater for longer maturity bonds.
o If interest rate movements cause the fund's mortgage-backed and callable
securities to be paid off substantially earlier or later than expected,
the fund's share price or yield could fall.
================================================================================
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.
--------------------------------------------------------------------------------
Shareholder transaction expenses(1) Class A Class B Class C
--------------------------------------------------------------------------------
Maximum sales charge (load) 5.00% 5.00% 2.00%
Maximum front-end sales charge (load)
on purchases as a % of purchase price 5.00% none 1.00%
Maximum deferred sales charge (load)
as a % of purchase or sale price,
whichever is less none(2) 5.00% 1.00%
--------------------------------------------------------------------------------
Annual operating expenses Class A Class B Class C
--------------------------------------------------------------------------------
Management fee 0.80% 0.80% 0.80%
Distribution and service (12b-1) fees 0.30% 1.00% 1.00%
Other expenses 10.61% 10.61% 10.61%
Total fund operating expenses 11.71% 12.41% 12.41%
Expense reimbursement (at least
until 2/28/01) 10.06% 10.06% 10.06%
Net annual operating expenses 1.65% 2.35% 2.35%
The hypothetical example below shows what your expenses would be after the
expense reimbursement (first year only) 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.
--------------------------------------------------------------------------------
Expenses Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------
Class A $659 $2,807 $4,676 $8,356
Class B - with redemption $738 $2,901 $4,826 $8,445
- without redemption $238 $2,601 $4,626 $8,445
Class C - with redemption S435 $2,675 $4,680 $8,528
- without redemption $336 $2,675 $4,680 $8,528
(1) A $4.00 fee will be charged for wire redemptions.
(2) Except for investments of $1 million or more; see "How sales charges are
calculated."
FUND CODES
Class A
---------------------------------------
Ticker --
CUSIP 478032832
Newspaper --
SEC number 811-3392
JH fund number 05
Class B
---------------------------------------
Ticker --
CUSIP 478032824
Newspaper --
SEC number 811-3392
JH fund number 105
Class C
---------------------------------------
Ticker --
CUSIP 478032816
Newspaper --
SEC number 811-3392
JH fund number 505
9
<PAGE>
Regional Bank Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks long-term capital appreciation with moderate income as
a secondary objective. To pursue this goal, the fund normally invests at least
65% of assets in stocks of regional banks and lending companies, including
commercial and industrial banks, savings and loan associations and bank holding
companies. Typically, these companies provide full-service banking, have
primarily domestic assets and are based outside of money centers such as New
York City and Chicago.
In managing the portfolio, the managers focus primarily on stock selection.
In choosing individual stocks, the managers use fundamental financial analysis
to identify securities that appear comparatively undervalued. The managers look
for low price/earnings (P/E) ratios, high-quality assets and sound loan review
processes. Given the industry-wide trend toward consolidation, the managers also
invest in companies that appear to be positioned for a merger. The fund's
portfolio may be concentrated in geographic regions where consolidation activity
is high. The managers generally gather firsthand information about companies
from interviews and company visits.
The fund may also invest in other U.S. and foreign financial services companies,
such as lending companies and money center banks. The fund may invest up to 5%
of net assets in stocks of companies outside the financial services sector and
up to 5% of net assets in junk bonds (those rated below BBB/Baa and their
unrated equivalents).
The fund may make limited use of certain derivatives (investments whose value is
based on indices, securities or currencies).
In abnormal market conditions, the fund may temporarily invest up to 80% of
assets in investment-grade short-term securities. In these and other cases, the
fund might not achieve its goal.
================================================================================
PORTFOLIO MANAGERS
James K. Schmidt, CFA
---------------------------------------
Executive vice president of adviser
Joined fund team in 1985
Joined adviser in 1985
Began business career in 1979
Thomas M. Finucane
---------------------------------------
Vice president of adviser
Joined fund team in 1990
Joined adviser in 1990
Began business career in 1990
Thomas C. Goggins
---------------------------------------
Senior vice president of adviser
Joined fund team in 1998
Joined adviser in 1995
Began business career in 1981
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 (along with a broad-based
market index for reference). This information may help provide an indication of
the fund's risks. The average annual figures reflect sales charges; the
year-by-year and index figures do not, and would be lower if they did. All
figures assume dividend reinvestment. Past performance does not indicate future
results.
--------------------------------------------------------------------------------
Class B year-by-year total returns -- calendar years
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-20.57% 63.78% 47.37% 20.51% -0.20% 47.56% 28.43% 52.83% 0.73% -16.37%
Best quarter: Q1 '91, 19.45%
Worst quarter: Q3 '90, -20.91%
--------------------------------------------------------------------------------
Average annual total returns -- for periods ending 12/31/99
--------------------------------------------------------------------------------
Life of
1 year 5 year 10 year Class A
Class A - began 1/3/92 -20.06% 19.10% -- 20.05%
Class B -20.12% 19.33% 18.85% --
Class C - began 3/1/99 -- -- -- --
Index 21.03% 28.54% 18.19% 19.69%
Index: Standard & Poor's 500 Stock Index, an unmanaged index of 500 stocks.
10
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will go up and down in response to stock
market movements. The fund's management strategy has a significant influence on
fund performance. Because the fund focuses on a single sector of the economy,
its performance depends in large part on the performance of that sector.
For instance, when interest rates fall or economic conditions deteriorate,
regional bank stocks could suffer losses. Also, rising interest rates can reduce
profits by narrowing the difference between these companies' borrowing and
lending rates.
A decline in a region's economy could hurt the banks in that region. Regional
bank stocks as a group could fall out of favor with the market, causing the fund
to underperform funds that focus on other types of stocks. In addition, if the
managers' security selection strategies do not perform as expected, the fund
could underperform its peers or lose money.
To the extent that the fund makes investments with additional risks, these risks
could increase volatility or reduce performance:
o Certain derivatives could produce disproportionate losses.
o In a down market, higher-risk securities and derivatives could become
harder to value or to sell at a fair price.
o Foreign investments carry additional risks, including potentially
unfavorable currency exchange rates, inadequate or inaccurate financial
information and social or political instability.
o Any bonds held by the fund could be downgraded in credit rating or go into
default. Bond prices generally fall when interest rates rise. This risk is
greater for longer maturity bonds. Junk bond prices can fall on bad news
about the economy, an industry or a company.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
================================================================================
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.
--------------------------------------------------------------------------------
Shareholder transaction expenses(1) Class A Class B Class C
--------------------------------------------------------------------------------
Maximum sales charge (load) 5.00% 5.00% 2.00%
Maximum front-end sales charge (load)
on purchases as a % of purchase price 5.00% none 1.00%
Maximum deferred sales charge (load)
as a % of purchase or sale price,
whichever is less none(2) 5.00% 1.00%
--------------------------------------------------------------------------------
Annual operating expenses Class A Class B Class C
--------------------------------------------------------------------------------
Management fee 0.75% 0.75% 0.75%
Distribution and service (12b-1) fees 0.30% 1.00% 1.00%
Other expenses 0.22% 0.22% 0.22%
Total fund operating expenses 1.27% 1.97% 1.97%
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.
--------------------------------------------------------------------------------
Expenses Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------
Class A $623 $883 $1,162 $1,957
Class B - with redemption $700 $918 $1,262 $2,115
- without redemption $200 $618 $1,062 $2,115
Class C - with redemption $397 $712 $1,152 $2,373
- without redemption $298 $712 $1,152 $2,373
(1) A $4.00 fee will be charged for wire redemptions.
(2) Except for investments of $1 million or more; see "How sales charges are
calculated."
FUND CODES
Class A
---------------------------------------
Ticker FRBAX
CUSIP 409905106
Newspaper RgBkA
SEC number 811-3999
JH fund number 01
Class B
---------------------------------------
Ticker FRBFX
CUSIP 409905205
Newspaper RgBkB
SEC number 811-3999
JH fund number 101
Class C
---------------------------------------
Ticker FRBCX
CUSIP 409905866
Newspaper RgBkC
SEC number 811-3999
JH fund number 501
11
<PAGE>
Technology Fund
GOAL AND STRATEGY
[Clip Art] The fund seeks long-term growth of capital. To pursue this goal, the
fund normally invests at least 65% of assets in U.S. and foreign companies that
rely extensively on technology in their product development or operations. These
companies are in fields such as: computer software, hardware and Internet
services; telecommunications; electronics; and data management and storage.
In managing the portfolio, the managers focus primarily on stock selection
rather than industry allocation. The managers invest in companies of any size
whose stocks appear to be trading below their true value, as determined by
fundamental financial analysis of their business models and balance sheets as
well as interviews with senior management. The fund focuses on companies that
are undergoing a business change that appears to signal accelerated growth or
higher earnings.
The fund may invest up to 10% of net assets in debt securities of any maturity,
including bonds rated as low as CC/Ca and their unrated equivalents. (Bonds
rated below BBB/Baa are considered junk bonds.)
It may also invest in certain higher-risk securities, including securities that
are not publicly offered or traded, called restricted securities.
The fund may use certain derivatives (investments whose value is based on
indices, securities or currencies).
In abnormal market conditions, the fund may temporarily invest more than 35% of
assets in investment-grade short-term securities. In these and other cases, the
fund might not achieve its goal.
The fund may trade securities actively, which could increase its transaction
costs (thus lowering performance) and increase your taxable distributions.
================================================================================
SUBADVISER
American Fund Advisors, Inc.
---------------------------------------
Responsible for day-to-day
investment management
Founded in 1978
Supervised by the adviser
PORTFOLIO MANAGERS
Barry J. Gordon
---------------------------------------
President of subadviser
Joined fund team in 1983
Began business career in 1971
Marc H. Klee, CFA
---------------------------------------
Executive vice president of subadviser
Joined fund team in 1983
Began business career in 1977
Alan J. Loewenstein, CFA
---------------------------------------
Senior vice president of subadviser
Joined fund team in 1983
Began business career in 1979
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 (along with a broad-based
market index for reference). This information may help provide an indication of
the fund's risks. The average annual figures reflect sales charges; the
year-by-year and index figures do not, and would be lower if they did. All
figures assume dividend reinvestment. Past performance does not indicate future
results.
--------------------------------------------------------------------------------
Class A year-by-year total returns -- calendar years
--------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-18.46% 33.05% 5.70% 32.06% 9.62% 46.53% 12.52% 6.68% 49.15% 132.39%
Best quarter: Q4 '99, 60.48%
Worst quarter: Q3 '90, -27.13%
--------------------------------------------------------------------------------
Average annual total returns -- for periods ending 12/31/99
--------------------------------------------------------------------------------
Life of
1 year 5 year 10 year Class B
Class A 120.79% 42.09% 25.44% --
Class B - began 1/3/94 125.77% 42.45% -- 36.54%
Class C - began 3/1/99 -- -- -- --
Index 21.03% 28.54% 18.19% 23.55%
Index: Standard & Poor's 500 Stock Index, an unmanaged index of 500 U.S. common
stocks.
12
<PAGE>
MAIN RISKS
[Clip Art] The value of your investment will go up and down in response to stock
market movements.
The fund's management strategy has a significant influence on fund performance.
Because the fund focuses on a single sector of the economy, its performance
depends in large part on the performance of that sector. As a result, the value
of your investment may fluctuate more widely than it would in a fund that is
diversified across sectors.
Technology companies may face special risks, such as short product cycles that
are difficult to predict. Some technology companies are smaller companies that
may have limited product lines and financial and managerial resources, making
them vulnerable to isolated business setbacks.
Stocks of technology companies as a group could fall out of favor with the
market, causing the fund to underperform funds that focus on other types of
stocks. In addition, if the managers' security selection strategies do not
perform as expected, the fund could underperform its peers or lose money.
To the extent that the fund makes investments with additional risks, these risks
could increase volatility or reduce performance:
o Certain derivatives could produce disproportionate losses.
o Foreign investments carry additional risks, including potentially
unfavorable currency exchange rates, inadequate or inaccurate financial
information and social or political instability.
o Any bonds held by the fund could be downgraded in credit rating or go into
default. Bond prices generally fall when interest rates rise. This risk is
greater for longer maturity bonds. Junk bond prices can fall on bad news
about the economy, an industry or a company.
o In a down market, higher-risk securities and derivatives could become
harder to value or to sell at a fair price.
================================================================================
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.
--------------------------------------------------------------------------------
Shareholder transaction expenses(1) Class A Class B Class C
--------------------------------------------------------------------------------
Maximum sales charge (load) 5.00% 5.00% 2.00%
Maximum front-end sales charge (load)
on purchases as a % of purchase price 5.00% none 1.00%
Maximum deferred sales charge (load)
as a % of purchase or sale price,
whichever is less none(2) 5.00% 1.00%
--------------------------------------------------------------------------------
Annual operating expenses Class A Class B Class C
--------------------------------------------------------------------------------
Management fee 0.76% 0.76% 0.76%
Distribution and service (12b-1) fees 0.30% 1.00% 1.00%
Other expenses 0.29% 0.29% 0.29%
Total fund operating expenses 1.35% 2.05% 2.05%
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.
--------------------------------------------------------------------------------
Expenses Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------
Class A $631 $906 $1,202 $2,043
Class B - with redemption $708 $943 $1,303 $2,200
- without redemption $208 $643 $1,103 $2,200
Class C - with redemption $405 $736 $1,192 $2,455
- without redemption $306 $736 $1,192 $2,455
(1) A $4.00 fee will be charged for wire redemptions.
(2) Except for investments of $1 million or more; see "How sales charges are
calculated."
FUND CODES
Class A
---------------------------------------
Ticker NTTFX
CUSIP 478032303
Newspaper TechA
SEC number 811-3392
JH fund number 83
Class B
---------------------------------------
Ticker FGTBX
CUSIP 478032402
Newspaper TechB
SEC number 811-3392
JH fund number 183
Class C
---------------------------------------
Ticker JHTCX
CUSIP 478032600
Newspaper TechC
SEC number 811-3392
JH fund number 583
13
<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 representative can help you decide which share class is best for you.
--------------------------------------------------------------------------------
Class A
--------------------------------------------------------------------------------
o A front-end sales charge, as described at right.
o Distribution and service (12b-1) fees of 0.30%.
--------------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------------
o No front-end sales charge; all your money goes to work for you right away.
o Distribution and service (12b-1) fees of 1.00%.
o A deferred sales charge, as described on following page.
o Automatic conversion to Class A shares after eight years, thus reducing
future annual expenses.
--------------------------------------------------------------------------------
Class C
--------------------------------------------------------------------------------
o A front-end sales charge, as described at right.
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, they may cost shareholders more
than other types of sales charges.
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.
Your broker receives a percentage of these sales charges and fees. In addition,
John Hancock Funds may pay significant compensation out of its own resources to
your broker.
Your broker or agent may charge you a fee to effect transactions in fund shares.
--------------------------------------------------------------------------------
HOW SALES CHARGES ARE CALCULATED
Class A and Class C Sales charges are as follows:
--------------------------------------------------------------------------------
Class A sales charges
--------------------------------------------------------------------------------
As a % of As a % of your
Your investment offering price investment
Up to $49,999 5.00% 5.26%
$50,000 - $99,999 4.50% 4.71%
$100,000 - $249,999 3.50% 3.63%
$250,000 - $499,999 2.50% 2.56%
$500,000 - $999,999 2.00% 2.04%
$1,000,000 and over See below
--------------------------------------------------------------------------------
Class C sales charges
--------------------------------------------------------------------------------
As a % of As a % of your
Your investment offering price investment
Up to $1,000,000 1.00% 1.01%
$1,000,000 and over none
Investments of $1 million or more Class A and Class C shares are available with
no front-end sales charge. However, there is a contingent deferred sales charge
(CDSC) on any Class A shares sold within one year of purchase, as follows:
--------------------------------------------------------------------------------
CDSC on $1 million+ investments
--------------------------------------------------------------------------------
CDSC on shares
Your investment being sold
First $1M - $4,999,999 1.00%
Next $1 - $5M above that 0.50%
Next $1 or more above that 0.25%
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.
The CDSC is based on the lesser of the original purchase cost or the current
market value of the shares being sold, and is not charged on shares you acquired
by reinvesting your dividends. 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 are not subject to a CDSC.
14 YOUR ACCOUNT
<PAGE>
Class B Shares are offered at their net asset value per share, without any
initial sales charge.
Class B and Class C A CDSC may be charged if you sell Class B or Class C shares
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, whichever is less. The CDSCs are as follows:
--------------------------------------------------------------------------------
Class B deferred charges
--------------------------------------------------------------------------------
CDSC on shares
Years after purchase being sold
1st year 5.00%
2nd year 4.00%
3rd year or 4th year 3.00%
5th year 2.00%
6th year 1.00%
After 6th year none
--------------------------------------------------------------------------------
Class C deferred charges
--------------------------------------------------------------------------------
Years after purchase CDSC
1st year 1.00%
After 1st year none
For purposes of these CDSCs, 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.
--------------------------------------------------------------------------------
SALES CHARGE REDUCTIONS AND WAIVERS
Reducing your Class A sales charges There are several ways you can combine
multiple purchases of Class A shares of John Hancock funds to take advantage of
the breakpoints in the sales charge schedule. The first three ways can be
combined in any manner.
o Accumulation Privilege -- lets you add the value of any Class A shares you
already own to the amount of your next Class A investment for purposes of
calculating the sales charge. Retirement plans investing $1 million in
Class B shares may add that value to Class A purchases to calculate
charges.
o Letter of Intention -- lets you purchase Class A shares of a fund over a
13-month period and receive the same sales charge as if all shares had
been purchased at once.
o Combination Privilege -- lets you combine Class A shares of multiple funds
for purposes of calculating the sales charge.
To utilize: complete the appropriate section of your application, or contact
your financial representative or Signature Services, or consult the SAI (see the
back cover of this prospectus).
Group Investment Program A group may be treated as a single purchaser under the
accumulation and combination privileges. Each investor has an individual
account, but the group's investments are lumped together for sales charge
purposes, making the investors potentially eligible for reduced sales charges.
There is no charge or obligation to invest (although initial investments must
total at least $250), and individual investors may close their accounts at any
time.
To utilize: contact your financial representative or Signature Services to find
out how to qualify, or consult the SAI (see the back cover of this prospectus).
CDSC waivers As long as Signature Services is notified at the time you sell, the
CDSC for each share class will generally be waived in the following cases:
o to make payments through certain systematic withdrawal plans
o to make certain 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).
YOUR ACCOUNT 15
<PAGE>
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.
Waivers for certain investors Class A shares may be offered without front-end
sales charges or CDSCs to various individuals and institutions, including:
o selling brokers and their employees and sales representatives
o financial representatives utilizing fund shares in fee-based investment
products under signed agreement with John Hancock Funds
o fund trustees and other individuals who are affiliated with these or other
John Hancock funds
o individuals transferring assets from an employee benefit plan into a John
Hancock fund
o participants in certain retirement plans with at least 100 eligible
employees (one-year CDSC applies)
Class C shares may be offered without front-end sales charges to various
individuals and institutions, including certain retirement plans.
To utilize: if you think you may be eligible for a sales charge waiver, contact
Signature Services or consult the SAI (see the back cover of this prospectus).
--------------------------------------------------------------------------------
OPENING AN ACCOUNT
1 Read this prospectus carefully.
2 Determine how much you want to invest. The minimum initial investments for
the John Hancock funds are as follows:
o non-retirement account: $1,000
o retirement account: $250
o group investments: $250
o Monthly Automatic Accumulation Plan (MAAP): $25 to open; you must
invest at least $25 a month
o fee-based clients of selling brokers who have placed at least $2
billion in John Hancock funds: $250
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.
16 YOUR ACCOUNT
<PAGE>
--------------------------------------------------------------------------------
Buying shares
--------------------------------------------------------------------------------
Opening an account Adding to an account
By check
[Clip Art] o Make out a check for the o Make out a check for the
investment amount, payable to investment amount payable to
"John Hancock Signature "John Hancock Signature
Services, Inc." Services, Inc."
o Deliver the check and your o Fill out the detachable
completed application to your investment slip from an account
financial representative, or statement. If no slip is
mail them to Signature available, include a note
Services (address below). specifying the fund name, your
share 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 www.jhfunds.com to
representative or Signature process exchanges between funds.
Services to request an
exchange. 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 wire the
application to your financial amount of your investment to:
representative, or mail it to First Signature Bank & Trust
Signature Services. Account # 900000260
Routing # 211475000
o Obtain your account number by
calling your financial Specify the fund name, your share
representative or Signature class, your account number and the
Services. name(s) in which the account is
registered. Your bank may charge a
o Instruct your bank to wire the fee to wire funds.
amount of your investment to:
First Signature Bank & Trust
Account # 900000260
Routing # 211475000
Specify the fund name, 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 wire." o Verify that your bank 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 wire." o Verify that your bank 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.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
To open or add to an account using the Monthly Automatic Accumulation Program,
see "Additional investor services."
YOUR ACCOUNT 17
<PAGE>
--------------------------------------------------------------------------------
Selling shares
--------------------------------------------------------------------------------
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
complete a stock power
o Sales of any amount. 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
initiate redemptions from your
o Sales of up to $100,000. funds.
By phone
[Clip Art] o Most accounts. o Call EASI-Line for automated
service 24 hours a day using
o Sales of up to $100,000. 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.
By wire or electronic funds transfer (EFT)
[Clip Art] o Requests by letter to sell any o To verify that the Internet or
amount. telephone redemption privilege
is in place on an account, or to
o Requests by Internet or phone request the form to add it to an
to sell up to $100,000. 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 Amounts of less than $1,000 may
be sent by EFT or by check.
Funds from EFT transactions are
generally 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 fund into which you are
o Sales of any amount. 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.
To sell shares through a systematic withdrawal plan, see "Additional investor
services."
18 YOUR ACCOUNT
<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.
--------------------------------------------------------------------------------
Seller Requirements for written requests
--------------------------------------------------------------------------------
[Clip Art]
Owners of individual, joint or UGMA/UTMA o Letter of instruction.
accounts (custodial accounts for minors).
o On the letter, the signatures 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, sole proprietorship, o Letter of instruction.
general partner or association accounts.
o Corporate business/organization
resolution, certified within the
past 12 months, or a John
Hancock Funds 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 accounts. o Letter of instruction.
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 John Hancock Funds
trust certification form.
o Signature guarantee if
applicable (see above).
Joint tenancy shareholders with rights of o Letter of instruction signed by
survivorship whose co-tenants are deceased. surviving tenant.
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, guardians and o Call 1-800-225-5291 for
other sellers or account types not listed instructions.
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.
--------------------------------------------------------------------------------
YOUR ACCOUNT 19
<PAGE>
--------------------------------------------------------------------------------
TRANSACTION POLICIES
Valuation of shares The net asset value (NAV) per share for each fund and class
is determined each business day at the close of regular trading on the New York
Stock Exchange (typically 4 P.M. Eastern Time). The funds use market prices in
valuing portfolio securities, but may use fair-value estimates if reliable
market prices are unavailable. The funds may also value securities at fair value
if the value of these securities has been materially affected by events
occurring after the close of a foreign market. Foreign stock or other portfolio
securities held by the funds may trade on U.S. holidays and weekends, even
though the funds' shares will not be priced on those days. This may change a
fund's NAV on days when you cannot buy or sell shares.
Buy and sell prices When you buy shares, you pay the NAV plus any applicable
sales charges, as described earlier. When you sell shares, you receive the NAV
minus any applicable deferred sales charges.
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 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
redemption 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, generally without paying any additional sales charges.
The registration for both accounts involved must be identical. Class B and Class
C shares will continue to age from the original date and will retain the same
CDSC rate. However, if the new fund's CDSC rate is higher, then the rate will
increase. 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 who, 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 The funds no longer issue share certificates. Shares are
electronically recorded. Any existing certificated shares can only be sold by
returning the certificated shares to Signature Services, along with a letter of
instruction or a stock power and a signature guarantee.
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.
--------------------------------------------------------------------------------
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 distribute most or all of their net earnings
annually in the form of dividends. Regional Bank Fund and Real Estate Fund
typically pay income dividends quarterly. Any capital gains are distributed
annually.
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.
20 YOUR ACCOUNT
<PAGE>
Taxability of dividends Dividends you receive from a fund, whether reinvested or
taken as cash, are generally considered taxable. Dividends from a fund's income
and short-term capital gains are taxable as ordinary income. Dividends from a
fund's long-term capital gains are taxable at a lower rate. Whether gains are
short-term or long-term depends on the fund's holding period. 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. Depending on the purchase price and the sale
price of the shares you sell or exchange, you may have a gain or a loss on the
transaction. You are responsible for any tax liabilities generated by your
transactions.
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.
--------------------------------------------------------------------------------
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 account application.
o If you are using MAAP to open an account, make out a check ($25 minimum)
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, because of sales charges).
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.
YOUR ACCOUNT 21
<PAGE>
Fund details
--------------------------------------------------------------------------------
BUSINESS STRUCTURE
The diagram below shows the basic business structure used by the John Hancock
sector funds. Each fund's board of trustees oversees the fund's business
activities and retains the services of the various firms that carry out the
fund's operations.
The trustees of the Financial Industries, Health Sciences and Real Estate funds
have the power to change these funds' respective investment goals without
shareholder approval.
Management fees The management fees paid to the investment adviser by the John
Hancock sector funds last fiscal year are as follows:
--------------------------------------------------------------------------------
Fund % of net assets
--------------------------------------------------------------------------------
Financial Industries 0.76%
Health Sciences 0.78%
Real Estate 0.00%
Regional Bank 0.75%
Technology 0.76%
[The following information was represented as a flow chart in the printed
material.]
-----------------
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.
------------------------------------------------------
Asset
management
------------------------------------
Subadviser
American Fund Advisors, Inc.
1415 Kellum Place
Garden City, NY 11530
Provides portfolio management
to Technology Fund.
------------------------------------
------------------------------------
Investment adviser
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, MA 02199-7603
Manages the funds' business and
investment activities.
------------------------------------
------------------------------------
Custodians
Brown Brothers Harriman & Co.
Investors Bank & Trust Co.
State Street Bank & Trust Co.
Hold the funds' assets, settle all
portfolio trades and collect most of
the valuation data required for
calculating each fund's NAV.
------------------------------------
------------------------------------
Trustees
Oversee the funds' activities.
------------------------------------
22 FUND DETAILS
<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.
Financial Industries Fund
Figures audited by PricewaterhouseCoopers LLP.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Class A - period ended: 10/96(1) 10/97 10/98 10/99
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $8.50 $11.03 $14.26 $14.80
Net investment income (loss)(2) 0.02 0.14 0.15 0.10
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.51 3.77 0.52(3) 1.18
Total from investment operations 2.53 3.91 0.67 1.28
Less distributions:
Dividends from net investment income -- (0.03) (0.11) (0.14)
Distributions in excess of net investment income -- -- -- (0.02)
Distributions from net realized gain on investments sold -- (0.65) (0.02) --
Total distributions -- (0.68) (0.13) (0.16)
Net asset value, end of period $11.03 $14.26 $14.80 $15.92
Total investment return at net asset value(4) (%) 29.76(5) 37.19 4.66 8.69
Total adjusted investment return at net asset value(4, 6) (%) 26.04(5) 36.92 -- --
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 895 416,698 861,582 659,031
Ratio of expenses to average net assets (%) 1.20(7) 1.20 1.37 1.39
Ratio of adjusted expenses to average net assets(8) (%) 7.07(7) 1.47 -- --
Ratio of net investment income (loss) to average net assets (%) 0.37(7) 1.10 0.92 0.62
Ratio of adjusted net investment income (loss) to average net assets(8) (%) (5.50)(7) 0.83 -- --
Portfolio turnover rate (%) 31 6 30 40
Fee reduction per share(2) ($) 0.38 0.03 -- --
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Class B - period ended: 10/97(1) 10/98 10/99
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $11.43 $14.18 $14.70
Net investment income (loss)(2) 0.04 0.03 (0.01)
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.71 0.54(3) 1.17
Total from investment operations 2.75 0.57 1.16
Less distributions:
Dividends from net investment income -- (0.03) (0.04)
Distributions in excess of net investment income -- -- (0.01)
Distributions from net realized gain on investments sold -- (0.02) --
Total distributions -- (0.05) (0.05)
Net asset value, end of period $14.18 $14.70 $15.81
Total investment return at net asset value(4) (%) 24.06(5) 3.95 7.93
Total adjusted investment return at net asset value(4, 6) (%) 23.85(5) -- --
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 1,308,946 2,603,021 2,163,265
Ratio of expenses to average net assets (%) 1.90(7) 2.07 2.07
Ratio of adjusted expenses to average net assets(8) (%) 2.17(7) -- --
Ratio of net investment income (loss) to average net assets (%) 0.40(7) 0.22 (0.07)
Ratio of adjusted net investment income (loss) to average net assets(8) (%) 0.13(7) -- --
Portfolio turnover rate (%) 6 30 40
Fee reduction per share(2) ($) 0.03 -- --
</TABLE>
FUND DETAILS 23
<PAGE>
Financial Industries Fund continued
--------------------------------------------------------------------------------
Class C - period ended: 10/99(1)
--------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of period $15.60
Net investment income (loss)(2) 0.00(9)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.21
Total from investment operations 0.21
Net asset value, end of period $15.81
Total investment return at net asset value(4) (%) 1.35(5)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 5,401
Ratio of expenses to average net assets (%) 2.06(7)
Ratio of net investment income (loss) to average net assets (%) (0.14)(7)
Portfolio turnover rate (%) 40
(1) Class A, Class B and Class C shares began operations on March 14, 1996,
January 14, 1997 and March 1, 1999, respectively.
(2) Based on the average of the shares outstanding at the end of each month.
(3) Amount shown for a share outstanding does not correspond with aggregate
net gain (loss) on investments for the period ended October 31, 1998, due
to the timing of sales and repurchases of fund shares in relation to
fluctuating market values of the investments of the fund.
(4) Assumes dividend reinvestment and does not reflect the effect of sales
charges.
(5) Not annualized.
(6) An estimated total return calculation that does not take into
consideration fee reductions by the adviser during the periods shown.
(7) Annualized.
(8) Unreimbursed, without fee reduction.
(9) Less than $0.01 per share.
24 FUND DETAILS
<PAGE>
Health Sciences Fund
Figures audited by PricewaterhouseCoopers LLP.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class A - period ended: 8/95 8/96 10/96(1) 10/97 10/98 10/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $16.51 $21.61 $25.43 $25.11 $30.25 $33.89
Net investment income (loss)(2) (0.36) (0.19) (0.05) (0.19) (0.23) (0.18)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 5.46 4.15 (0.27) 6.56 4.38 0.57
Total from investment operations 5.10 3.96 (0.32) 6.37 4.15 0.39
Less distributions:
Distributions from net realized gain on investments sold
and foreign currency transactions -- (0.14) -- (1.23) (0.51) --
Net asset value, end of period $21.61 $25.43 $25.11 $30.25 $33.89 $34.28
Total investment return at net asset value(3) (%) 30.89 18.39 (1.26)(4) 26.63 13.91 1.15
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 24,394 42,405 42,618 53,122 83,928 92,766
Ratio of expenses to average net assets (%) 2.56 1.80 1.92(5) 1.68 1.61 1.60
Ratio of net investment income (loss) to average net assets (%) (1.99) (0.75) (1.04)(5) (0.71) (0.71) (0.52)
Portfolio turnover rate (%) 38 68 24 57 39 61
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class B - period ended: 8/95 8/96 10/96(1) 10/97 10/98 10/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $16.46 $21.35 $24.94 $24.60 $29.40 $32.69
Net investment income (loss)(2) (0.55) (0.34) (0.08) (0.37) (0.45) (0.41)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 5.44 4.07 (0.26) 6.40 4.25 0.55
Total from investment operations 4.89 3.73 (0.34) 6.03 3.80 0.14
Less distributions:
Distributions from net realized gain on investments sold
and foreign currency transactions -- (0.14) -- (1.23) (0.51) --
Net asset value, end of period $21.35 $24.94 $24.60 $29.40 $32.69 $32.83
Total investment return at net asset value(3) (%) 29.71 17.53 (1.36)(4) 25.76 13.11 0.43
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 6,333 36,591 37,521 53,436 123,880 152,323
Ratio of expenses to average net assets (%) 3.45 2.42 2.62(5) 2.38 2.31 2.30
Ratio of net investment income (loss) to average net assets (%) (2.91) (1.33) (1.74)(5) (1.41) (1.41) (1.22)
Portfolio turnover rate (%) 38 68 24 57 39 61
</TABLE>
--------------------------------------------------------------------------------
Class C - period ended: 10/99(6)
--------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of period $33.94
Net investment income (loss)(2) (0.28)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.83)
Total from investment operations (1.11)
Net asset value, end of period $32.83
Total investment return at net asset value(3) (%) (3.27)(4)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 1,877
Ratio of expenses to average net assets (%) 2.40(5)
Ratio of net investment income (loss) to average net assets (%) (1.30)(5)
Portfolio turnover rate (%) 61
(1) Effective October 31, 1996, the fiscal year end changed from August 31 to
October 31.
(2) Based on the average of the shares outstanding at the end of each month.
(3) Assumes dividend reinvestment and does not reflect the effect of sales
charges.
(4) Not annualized.
(5) Annualized.
(6) Class C shares began operations on March 1, 1999.
FUND DETAILS 25
<PAGE>
Real Estate Fund
Figures audited by Deloitte & Touche LLP.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Class A - period ended: 12/98(1) 10/99(2,3)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Per share operating performance
Net asset value, beginning of period $10.00 $9.93
Net investment income (loss)(4) 0.14 0.37
Net realized and unrealized gain (loss) on investments (0.09) (0.48)
Total from investment operations 0.05 (0.11)
Less distributions:
Dividends from net investment income (0.12) (0.34)
Net asset value, end of period $9.93 $9.48
Total investment return at net asset value(5) (%) 0.47(6) (1.11)(6)
Total adjusted investment return at net asset value(5,7) (%) (1.60)(6) (9.49)(6)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 1,006 960
Ratio of expenses to average net assets (%) 1.65(8) 1.65(8)
Ratio of adjusted expenses to average net assets(9) (%) 9.85(8) 11.71(8)
Ratio of net investment income (loss) to average net assets (%) 5.72(8) 4.49(8)
Ratio of adjusted net investment income (loss) to average net assets(9) (%) (2.48)(8) (5.57)(8)
Portfolio turnover rate (%) 109 345
Fee reduction per share(4) ($) 0.20 0.83
</TABLE>
(1) Began operations on September 30, 1998.
(2) Effective October 31, 1999, the fiscal year end changed from December 31
to October 31.
(3) For the period from January 1, 1999 to October 31, 1999.
(4) Based on the average of the shares outstanding at the end of each month.
(5) Assumes dividend reinvestment and does not reflect the effect of sales
charges.
(6) Not annualized.
(7) An estimated total return calculation that does not take into
consideration fee reductions by the adviser during the periods shown.
(8) Annualized.
(9) Unreimbursed, without fee reduction.
26 FUND DETAILS
<PAGE>
Regional Bank Fund
Figures audited by PricewaterhouseCoopers LLP.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class A - period ended: 10/95 10/96 10/97 10/98 10/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $21.52 $27.14 $33.99 $48.73 $50.34
Net investment income (loss)(1) 0.52 0.63 0.64 0.66 0.68
Net realized and unrealized gain (loss) on investments 5.92 7.04 15.02 1.99 2.36
Total from investment operations 6.44 7.67 15.66 2.65 3.04
Less distributions:
Dividends from net investment income (0.48) (0.60) (0.61) (0.65) (0.70)
Distributions from net realized gain on investments sold (0.34) (0.22) (0.31) (0.39) (1.47)
Total distributions (0.82) (0.82) (0.92) (1.04) (2.17)
Net asset value, end of period $27.14 $33.99 $48.73 $50.34 $51.21
Total investment return at net asset value(2) (%) 31.00 28.78 46.79 5.33 6.24
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 486,631 860,843 1,596,836 1,500,200 1,205,712
Ratio of expenses to average net assets (%) 1.39 1.36 1.30 1.24 1.27
Ratio of net investment income to average net assets (%) 2.23 2.13 1.55 1.23 1.33
Portfolio turnover rate (%) 14 8 5 5 4
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class B - period ended: 10/95 10/96 10/97 10/98 10/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $21.43 $27.02 $33.83 $48.48 $50.08
Net investment income (loss)(1) 0.36 0.42 0.35 0.30 0.35
Net realized and unrealized gain (loss) on investments 5.89 7.01 14.95 1.97 2.36
Total from investment operations 6.25 7.43 15.30 2.27 2.71
Less distributions:
Dividends from net investment income (0.32) (0.40) (0.34) (0.28) (0.38)
Distributions from net realized gain on investments sold (0.34) (0.22) (0.31) (0.39) (1.47)
Total distributions (0.66) (0.62) (0.65) (0.67) (1.85)
Net asset value, end of period $27.02 $33.83 $48.48 $50.08 $50.94
Total investment return at net asset value(2) (%) 30.11 27.89 45.78 4.62 5.55
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 1,236,447 2,408,514 4,847,755 4,506,983 3,639,380
Ratio of expenses to average net assets (%) 2.09 2.07 2.00 1.92 1.92
Ratio of net investment income (loss) to average net assets (%) 1.53 1.42 0.84 0.56 0.68
Portfolio turnover rate (%) 14 8 5 5 4
</TABLE>
--------------------------------------------------------------------------------
Class C - period ended: 10/99(3)
--------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of period $50.77
Net investment income (loss)(1) 0.22
Net realized and unrealized gain (loss) on investments 0.21
Total from investment operations 0.43
Less distributions:
Dividends from net investment income (0.26)
Net asset value, end of period $50.94
Total investment return at net asset value(2) (%) 0.87(4)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 6,841
Ratio of expenses to average net assets (%) 1.97(5)
Ratio of net investment income (loss) to average net assets (%) 0.65(5)
Portfolio turnover rate (%) 4
(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) Class C shares began operations on March 1, 1999.
(4) Not annualized.
(5) Annualized.
FUND DETAILS 27
<PAGE>
Technology Fund
Figures audited by Ernst & Young LLP.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class A - period ended: 12/94(1) 12/95(1) 10/96(1,2)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $2.91 $2.97 $4.09
Net investment income (loss)(3) (0.04) (0.04)(4) (0.02)
Net realized and unrealized gain (loss) on investments and written options 0.31 1.43 0.23
Total from investment operations 0.27 1.39 0.21
Less distributions:
Distributions from net realized gain on investments sold and written options (0.21) (0.27) --
Net asset value, end of period $2.97 $4.09 $4.30
Total investment return at net asset value(5) (%) 9.62 46.53 5.22(6)
Total adjusted investment return at net asset value(5) (%) -- 46.41(7) --
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 52,193 155,001 166,010
Ratio of expenses to average net assets (%) 2.16 1.67(4) 1.57(8)
Ratio of net investment income (loss) to average net assets (%) (1.25) (0.89)(4) (0.68)(8)
Portfolio turnover rate (%) 67 70 64
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class A - period ended: 10/97(1) 10/98(1) 10/99(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $4.30 $5.01 $4.74
Net investment income (loss)(3) (0.05) (0.05) (0.06)
Net realized and unrealized gain (loss) on investments and written options 0.97 0.18 5.39
Total from investment operations 0.92 0.13 5.33
Less distributions:
Distributions from net realized gain on investments sold and written options (0.21) (0.40) (0.04)
Net asset value, end of period $5.01 $4.74 $10.03
Total investment return at net asset value(5) (%) 21.90 3.95 113.09
Total adjusted investment return at net asset value(5) (%) -- -- --
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 184,048 186,259 523,013
Ratio of expenses to average net assets (%) 1.51 1.50 1.35
Ratio of net investment income (loss) to average net assets (%) (0.95) (0.97) (0.78)
Portfolio turnover rate (%) 104 86 61
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class B - period ended: 12/94(1,9) 12/95(1) 10/96(1,2)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $2.87 $2.95 $4.01
Net investment income (loss)(3) (0.06) (0.07)(4) (0.05)
Net realized and unrealized gain (loss) on investments and written options 0.35 1.40 0.24
Total from investment operations 0.29 1.33 0.19
Less distributions:
Distributions from net realized gain on investments sold and written options (0.21) (0.27) --
Net asset value, end of period $2.95 $4.01 $4.20
Total investment return at net asset value(5) (%) 10.02(6) 45.42 4.65(6)
Total adjusted investment return at net asset value(5) (%) -- 45.30(7) --
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 9,324 35,754 50,949
Ratio of expenses to average net assets (%) 2.90(8) 2.41(4) 2.27(8)
Ratio of net investment income (loss) to average net assets (%) (1.98)(8) (1.62)(4) (1.38)(8)
Portfolio turnover rate (%) 67 70 64
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Class B - period ended: 10/97(1) 10/98(1) 10/99(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $4.20 $4.85 $4.55
Net investment income (loss)(3) (0.08) (0.08) (0.11)
Net realized and unrealized gain (loss) on investments and written options 0.94 0.18 5.15
Total from investment operations 0.86 0.10 5.04
Less distributions:
Distributions from net realized gain on investments sold and written options (0.21) (0.40) (0.04)
Net asset value, end of period $4.85 $4.55 $9.55
Total investment return at net asset value(5) (%) 21.04 3.20 111.70
Total adjusted investment return at net asset value(5) (%) -- -- --
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 65,851 77,999 553,359
Ratio of expenses to average net assets (%) 2.21 2.20 2.05
Ratio of net investment income (loss) to average net assets (%) (1.65) (1.67) (1.47)
Portfolio turnover rate (%) 104 86 61
</TABLE>
--------------------------------------------------------------------------------
Class C - period ended: 10/99(1,9)
--------------------------------------------------------------------------------
Per share operating performance
Net asset value, beginning of period $7.71
Net investment income (loss)(3) (0.09)
Net realized and unrealized gain (loss) on investments and
written options 1.93
Total from investment operations 1.84
Net asset value, end of period $9.55
Total investment return at net asset value(5) (%) 48.62(6)
Ratios and supplemental data
Net assets, end of period (000s omitted) ($) 14,215
Ratio of expenses to average net assets (%) 2.16(8)
Ratio of net investment income (loss) to average net assets (%) (1.57)(8)
Portfolio turnover rate (%) 61
(1) Per share amounts have been restated to reflect a 6-for-1 stock split
effective August 11, 2000.
(2) Effective October 31, 1996, the fiscal year end changed from December 31
to October 31.
(3) Based on the average of the shares outstanding at the end of each month.
(4) Reflects voluntary fee reductions and expense limitations in effect during
the year ended December 31, 1995, which amounted to $0.003 and $0.005 per
share for Class A and Class B shares, respectively. Absent such reductions
the ratio of expenses to average net assets would have been 1.79% and
2.53% for Class A and Class B shares, respectively, and the ratio of net
investment loss to average net assets would have been (1.01%) and (1.74%)
for Class A and Class B shares, respectively.
(5) Assumes dividend reinvestment and does not reflect the effect of sales
charges.
(6) Not annualized.
(7) An estimated total return calculation which takes into consideration fees
and expenses waived or borne by the adviser during the periods shown.
(8) Annualized.
(9) Class B and Class C shares began operations on January 3, 1994 and March
1, 1999, respectively.
28 FUND DETAILS
<PAGE>
For more information
--------------------------------------------------------------------------------
Two documents are available that offer further information on John Hancock
sector 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
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