John Hancock Sovereign Bond Fund, May 1, 1994
John Hancock Growth Fund, May 1, 1994
John Hancock Special Value Fund, April 1, 1994
John Hancock Sovereign Investors Fund, May 1, 1994
John Hancock Sovereign Balanced Fund, May 1, 1994
John Hancock Limited Term Government Fund, May 1, 1994
John Hancock Global Technology Fund, May 1, 1994
John Hancock National Aviation & Technology Fund, May 1, 1994
John Hancock Tax-Exempt Income Fund, May 1, 1994
Supplement to Class A and Class B Prospectus
The "Qualifying for a Reduced Sales Charge" section under SHARE PRICE is
supplemented as follows:
Effective March 15, 1995, participant directed defined contribution plans
with at least 100 eligible employees at the inception of the Fund account
may purchase Class A shares of the Fund without an initial sales charge but
if the shares are redeemed within 12 months after the end of the calendar
year in which the purchase was made, a contingent deferred sales charge
will be imposed at the rate for Class A shares described in the prospectus.
March 15, 1995
<PAGE>
John Hancock
Special Value Fund
Class A and Class B Shares
Prospectus
April 1, 1994 as Revised November 7, 1994
TABLE OF CONTENTS
Page
Expense Information 2
The Fund's Financial Highlights 3
Investment Objective and Policies 4
Organization and Management of the Fund 8
Alternative Purchase Arrangements 9
The Fund's Expenses 10
Dividends and Taxes 11
Performance 12
How to Buy Shares 12
Share Price 14
How to Redeem Shares 20
Additional Services and Programs 21
Institutional Investors 25
This Prospectus sets forth information about John Hancock Special Value Fund
(the "Fund"), a series of John Hancock Capital Series (the "Trust") that you
should know before investing. Please read and retain it for future reference.
Additional information about the Fund has been filed with the Securities and
Exchange Commission (the "SEC"). You can obtain a copy of the Fund's
Statement of Additional Information, dated April 1, 1994, and incorporated by
reference in this Prospectus, free of charge by writing to or by telephoning:
John Hancock Investor Services Corporation, Post Office Box 9116, Boston,
Massachusetts 02205-9116, 1-800-225-5291 (1-800-554-6713 TDD).
Shares of the Fund are not deposits or obligations of, or guaranteed or
endorsed by, any bank, and the shares are not federally insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
<PAGE>
EXPENSE INFORMATION
The purpose of the following information is to help you to understand the
various fees and expenses you will bear, directly or indirectly. Since the
Fund does not yet have an operating history, the costs and expenses included
in the table and hypothetical example below are based on estimated fees and
expenses for a full fiscal year and should not be considered as
representative of future expenses. Actual fees and expenses may be greater or
less than those indicated. Moreover, while the example assumes a 5% annual
return, the Fund's actual performance will vary and may result in an actual
return greater or less than 5%.
Class A Class B
Shares** Shares**
Shareholder Transaction Expenses
(As a percentage of offering
price)
Maximum sales charge imposed on purchases 5.00% None
Maximum sales charge imposed on reinvested
dividends None None
Maximum deferred sales charge None* 5.00%
Redemption fee+ None None
Exchange fee None None
Annual Fund Operating Expenses (As a percentage
of average net assets)
Management fee 0.70% 0.70%
12b-1 fee*** 0.30% 1.00%
Transfer Agent fee 0.30% 0.32%
Other expenses 0.75% 0.75%
Less reimbursement of expenses by Adviser (a) (1.05)% (1.05)%
Total Fund operating expenses 1.00% 1.72%
*No sales charge is payable at the time of purchase on investments of $1
million or more, but for such investments a contingent deferred sales charge
of up to 1.00% may be imposed, as described under the caption "Share Price,"
in the event of certain redemption transactions within one year of purchase.
**The information set forth in the foregoing table relates only to the Class
A shares and Class B shares. The Board of Trustees has authorized the
issuance of three classes of the Fund, designated Class A, Class B and Class
C. See "Organization and Management of the Fund." Class C shares are only
offered to certain institutional investors and are described in a separate
prospectus. Some individual investors who are currently eligible to purchase
Class A and Class B shares may also be participants in plans that are
eligible to purchase Class C shares. See "How to Buy Shares--Institutional
Investors." Class C shares are not subject to a sales charge on purchases,
redemptions, or reinvested dividends, nor are they subject to deferred sales
charges or an exchange fee. Class C expenses are identical to those of Class
A shares except that the transfer agent fee may differ and there is no 12b-1
Fee on Class C shares.
***The amount of the 12b-1 fee used to cover service expenses will be up to
0.25% of the Fund's average net assets, and the remaining portion will be
used to cover distribution expenses. Distribution expenses under the Class A
Plan are not carried beyond one year from the date these expenses were
incurred. Unreimbursed expenses under the Class B Plan will be carried
forward with interest. See "The Fund's Expenses."
+Redemption by wire fee (currently $4.00) not included.
(a)Annual Fund operating expenses reflect the expenses net of the Adviser's
reimbursement or waiver of common expenses in excess of 0.40% of the Fund's
average net assets amounting to 1.05% of the Fund's average net assets of
Class A and Class B shares, respectively. In the absence of reimbursement or
waiver by the Adviser, the total expenses would have been 2.05% and 2.77%,
respectively.
<TABLE>
<CAPTION>
Example 1 Year 3 Years
<S> <C> <C>
You would pay the following
expenses for the indicated period
of years on a hypothetical $1,000
investment, assuming a 5% annual
return:
Class A Shares $60 $80
Class B Shares
--Assuming complete redemption at
end of period $67 $84
--Assuming no redemption $17 $54
</TABLE>
You would pay the following expenses for the indicated period of years on a
hypothetical $1,000 investment in Class C shares, assuming a 5% annual
return; 1 year, $5; and 3 years $16.
(This example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown.)
The Fund's payment of a distribution fee may result in a long-term
shareholder indirectly paying more than the economic equivalent of the
maximum front-end sales charge permitted under the National Association of
Securities Dealers Rules of Fair Practice.
The management and 12b-1 fees referenced above are more fully explained in
this Prospectus under the caption "The Fund's Expenses" and in the Statement
of Additional Information under the captions "Investment Advisory and Other
Services" and "Distribution Contract."
<PAGE>
THE FUND'S FINANCIAL HIGHLIGHTS (Unaudited)
The following unaudited table of Financial Highlights is for the period
January 3, 1994 (commencement of operations) to January 31, 1994 and is
included in the Statement of Additional Information.
For the Period from
January 3, 1994 to
January 31, 1994
CLASS A
Per Share Operating Performance
Net Asset Value, Beginning of Period $8.50
Net Investment Income 0.01
Net Realized and Unrealized Gain on Investments
Sold 0.20
Total from Investment Operations 0.21
Net Asset Value, End of Period $8.71
Total Investment Return at Net Asset Value 2.47%(b)
Ratios and Supplemental Data
Net Assets, End of Period (000's omitted) $ 881
Ratio of Expenses to Average Net Assets 1.00%*+
Ratio of Net Investment Income to Average Net
Assets 2.11%*+
Portfolio Turnover Rate 0.00%
Ratio of Expenses to Average Net Assets (Prior
to Reimbursement) 2.05%*(a)
Ratio of Net Investment Income to Average Net
Assets (Prior to Reimbursement) 1.06%*(a)
CLASS B
Per Share Operating Performance
Net Asset Value, Beginning of Period $8.50
Net Investment Income 0.00
Net Realized and Unrealized Gain on Investments
Sold 0.21
Total from Investment Operations 0.21
Net Asset Value, End of Period $8.71
Total Investment Return at Net Asset Value 2.47%(b)
Ratios and Supplemental Data
Net Assets, End of Period (000's omitted) $ 21
Ratio of Expenses to Average Net Assets 1.72%*+
Ratio of Net Investment Income to Average Net
Assets 1.39%*+
Portfolio Turnover Rate 0.00%
Ratio of Expenses to Average Net Assets (Prior
to Reimbursement) 2.77%*(a)
Ratio of Net Investment Income to Average Net
Assets (Prior to Reimbursement) 0.34%*(a)
* On an annualized basis
+ Reflects expense limitations in effect during the period indicated. As a
result of such limitations, expenses of the Fund for the period ended January
31, 1994 reflect reductions for Class A and Class B of $.01 and $.01 per
share, respectively.
(a) Percentages on an unreimbursed basis reflect the actual ratio of expenses
to average net assets and the ratio of net investment income to average net
assets prior to reimbursement.
(b) Not annualized.
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
The investment objective of the Fund is to seek capital appreciation with
income as a secondary objective.
The investment objective of the Fund is to seek capital appreciation with
income as a secondary consideration. The Fund will seek to achieve its
objective by investing primarily in equity securities that are undervalued
compared to alternative equity investments, and there can be no assurance
that the Fund will realize its objective.
The Fund will emphasize equity securities that are undervalued compared
to alternative equity investments.
The equity securities in which the Fund will invest consist of common stocks,
preferred stocks, convertible debt securities and warrants of U.S. and
foreign issuers. In selecting equity securities for the Fund, John Hancock
Advisers, Inc. (the "Adviser") and NM Capital Management Inc. (the
"Sub-Adviser" and together with the Adviser, the "Advisers") emphasize
issuers whose equity securities trade at market to book value ratios lower
than comparable issuers or the Standard & Poor's Composite Index. The Fund's
portfolio securities will also include those considered by the Advisers to
have the potential for capital appreciation due to potential recognition of
earnings power or asset value which is not fully reflected in such
securities' current market value. The Advisers attempt to identify
investments which possess characteristics, such as high relative value,
intrinsic value, going concern value, net asset value and replacement book
value, which are believed to limit sustained downside price risk, generally
referred to as the "margin of safety" concept. The Advisers also consider an
issuer's financial strength, competitive position, projected future earnings
and dividends and other investment criteria. These securities are
collectively referred to as "Special Value" securities.
The Fund's investment policy reflects the Advisers' belief that while the
securities markets tend to be efficient, sufficiently persistent price
anomalies exist which the strategically disciplined active equity manager can
exploit in seeking to achieve an above average rate of return. Based on this
premise, the Advisers have adopted a strategy of investing in low market to
book value, out of favor, stocks.
The Fund may invest in the securities of smaller, less well-known issuers,
which may involve certain risks.
The Fund's investments may include securities of both large, widely traded
companies and smaller, less well known issuers. Higher risks are often
associated with investments in companies with smaller market capitalizations.
These companies may have limited product lines, markets and financial
resources, or they may be dependent upon smaller or inexperienced management
groups. In addition, trading volume of such securities may be limited, and
historically the market price for such securities has been more volatile than
securities of companies with greater capitalization. However, securities of
companies with smaller capitalization may offer greater potential for capital
appreciation since they may be overlooked and thus undervalued by investors.
The Fund may also invest in fixed income securities in pursuing its
investment objective or for temporary defensive purposes.
The Fund may also invest in fixed income securities, consisting of U.S.
Government securities and convertible and non-convertible corporate preferred
stocks and debt securities. The market value of fixed income securities
varies inversely with changes in the prevailing levels of interest rates. The
market value of convertible securities, while influenced by the prevailing
level of interest rates, is also affected by the changing value of the equity
securities into which they are convertible. The Fund may purchase fixed
income debt securities with stated maturities of up to thirty years. The
corporate fixed income securities in which the Fund may invest, including
convertible
<PAGE>
debt securities and preferred stock, will be rated at least BBB by Standard &
Poors' Ratings Group ("S&P") or Moody's Investors Service, Inc. ("Moody's")
or, if unrated, determined to be of comparable quality by the Advisers. Under
normal market conditions, the Fund's investments in fixed income securities
are not expected to exceed 10% of the Fund's net assets. Debt securities
rated Baa or BBB are considered medium grade obligations with speculative
characteristics, and adverse economic conditions or changing circumstances
may weaken capacity to pay interest and repay principal. If the rating of a
debt security is reduced below Baa or BBB, the Advisers will sell it when it
is appropriate consistent with the Fund's investment objective and policies.
When the Advisers believe unfavorable investment conditions exist requiring
the Fund to assume a temporary defensive investment posture, the Fund may
hold cash or invest all or a portion of its assets in short-term instruments
which are rated A-1 by S&P or P-1 by Moody's.
The Fund may employ certain investment strategies to help achieve its
investment objective.
Foreign Securities. The Fund may invest up to 50% of its assets in securities
of foreign issuers, including American Depositary Receipts ("ADRs"). ADRs
(sponsored and unsponsored) are receipts typically issued by an American bank
or trust company which evidence ownership of underlying securities issued by
a foreign corporation, and are designed for trading in United States
securities markets. Issuers of the shares underlying unsponsored ADRs are not
contractually obligated to disclose material information in the United States
and, therefore, there may not be a correlation between that information and
the market value of the unsponsored ADR. Investments in foreign securities
may involve risks not present in domestic investments. An investment in
foreign securities or the holding of foreign currency may be affected
favorably or unfavorably by changes in currency rates and in exchange control
regulations. There may be a transaction charge or restrictions on the
exchange of currency. Foreign companies may not be subject to accounting
standards or government supervision comparable to those imposed on domestic
companies and there is often less publicly available information about their
operations. Foreign markets generally provide less liquidity than U.S.
markets (and thus potentially greater price volatility), and typically
provide fewer regulatory protections for investors. Foreign securities can
also be affected by political or financial instability abroad.
There may also be additional costs in connection with the Fund's
international investment activities. Foreign brokerage commissions are
generally higher than those of the U.S. Expenses may also be incurred on
currency exchanges when the Fund changes investments from one country to
another. Increased custodian costs as well as administrative difficulties
(such as the need to use foreign custodians) may be associated with
maintaining assets in foreign jurisdictions.
Foreign Currencies. Due to its investments in foreign securities, the Fund
may hold a portion of its assets in foreign currencies. As a result, the Fund
may enter into forward foreign currency exchange contracts to protect against
changes in foreign currency exchange rates. A forward foreign currency
exchange contract involves an obligation to purchase or sell a specific
currency at a future date at a price set at the time of the contract.
Although hedging strategies could reduce the risk of loss due to a decline in
the value of the hedged foreign currency, they could also limit any potential
<PAGE>
gain which might result from an increase in the value of the currency in
which the hedged security is quoted or denominated.
Financial Futures Contracts. The Fund may buy and sell stock index and other
financial futures contracts and options on futures contract to hedge against
changes in securities prices, interest rates and currency exchange rates or
for speculative purposes. The futures contracts may be based upon various
securities, securities indices, foreign currencies and other financial
instruments and indices. The Fund will engage in futures transactions and
related options only to the extent permitted by the Commodity Futures Trading
Commission. Consequently, the Fund may not purchase or sell futures contracts
or related options for speculative purposes, except for closing purchase and
sale transactions, if immediately thereafter the sum of the amount of initial
margin deposits on the Fund's outstanding speculative positions in futures
and related options and the amount of premiums paid for outstanding options
on futures exceeds 5% of the market value of the Fund's net assets.
Options Transactions Within Prescribed Limitations. The Fund may write listed
and over-the-counter covered call and put options on securities in which it
may invest and on indices composed of securities in which it may invest on up
to 100% of its net assets. The Fund may also purchase put and call options on
such securities and indices. All call options written by the Fund are
covered, which means that the Fund will own the securities subject to the
option so long as the option is outstanding. All put options written by the
Fund are also covered, which means that the Fund would have deposited with
its custodian cash, U.S. Government securities or other liquid high grade
debt securities with a value at least equal to the exercise price of the put
option. Call and put options written by the Fund will also be considered to
be covered to the extent that the Fund's liabilities under such options are
wholly or partially offset by its rights under call and put options purchased
by the Fund. The Fund will treat purchased over-the-counter options and
assets used to cover written over-the-counter options as illiquid securities.
However, with respect to options written with primary dealers in U.S.
Government securities pursuant to an agreement requiring a closing purchase
transaction at a formula price, the amount of illiquid securities may be
calculated with reference to the formula price.
While transactions in options and futures contracts may reduce certain risks,
such transactions entail other risks. Certain risks arise due to the
imperfect correlations between movements in the price of options and futures
contracts and the movements in the prices of the securities or currency that
are the subject of such option or futures contract. In addition, the Fund
could be prevented from opening, or realizing the benefits of closing out, a
futures or options position because of position limits or limits on daily
price fluctuations imposed by an exchange. There can be no assurance that a
liquid secondary market will exist for any option or futures contract. The
Fund's ability to hedge successfully will depend on the Advisers' ability to
predict accurately the future direction of securities and currency markets
and interest rates. Transactions in futures contracts involve brokerage
costs, require margin deposits and require the Fund to segregate liquid high
grade debt securities in an amount equal to the value of such contracts. The
risk of loss from writing options on futures transactions is potentially
unlimited and may exceed the amount of the premium received.
<PAGE>
Lending of Securities. The Fund may lend portfolio securities to brokers,
dealers and financial institutions if the loan is collateralized according to
applicable regulatory requirements. When the Fund lends portfolio securities,
there is a risk that the borrower may fail to return the securities involved
in the transactions. As a result, the Fund may incur a loss or, in the event
of the borrower's bankruptcy, the Fund may be delayed or prevented from
liquidating the collateral. It is a fundamental policy of the Fund not to
lend portfolio securities having a total value in excess of 33-1/3% of its
total assets.
Restricted Securities. The Fund may purchase restricted securities, including
those eligible for resale to "qualified institutional buyers" pursuant to
Rule 144A under the Securities Act of 1933 (the "Securities Act"), subject to
an investment restriction limiting all illiquid securities held by the Fund
to not more than 15% of the Fund's net assets. The Trustees will monitor the
Fund's investments in these securities, focusing on certain factors,
including valuation, liquidity and availability of information. This
investment practice could have the effect of increasing the level of
illiquidity in the Fund to the extent that qualified institutional buyers
became for a time uninterested in purchasing these restricted securities.
Repurchase Agreements, Forward Commitments and When-Issued Securities. The
Fund may enter into repurchase agreements and may purchase securities on a
forward commitment or when-issued basis. In a repurchase agreement, the Fund
buys a security subject to the right and obligation to sell it back at a
higher price. These transactions must be fully collateralized at all times,
but involve some credit risk to the Fund if the other party defaults on its
obligation and the Fund is delayed or prevented from liquidating the
collateral. The Fund will segregate in a separate account cash or liquid,
high grade debt securities equal in value to its forward commitments and
when-issued securities. When the Fund engages in forward commitment and
when-issued transactions, it relies on the seller or the buyer, as the case
may be, to consummate the transaction. Failure to consummate the transaction
may result in the Fund's losing the opportunity to obtain an advantageous
price and yield. These transactions involve a risk of loss if the value of
the underlying security changes before the settlement date.
The Fund does not intend to invest for short-term profits.
Although the Fund does not intend to invest for the purpose of seeking
short-term profits, the Fund's particular portfolio securities may be changed
without regard to their holding period (subject to certain tax restrictions)
when the Advisers deem that this action is appropriate in view of a change in
the issuer's financial or business operations or changes in general market
conditions. It is anticipated that under normal market conditions, the Fund's
annual portfolio turnover rate will be less than 100%.
The Fund follows certain policies which may help reduce investment risk.
The Fund has adopted certain investment restrictions which are detailed in
the Statement of Additional Information, where they are classified as
fundamental or non-fundamental. The Fund's fundamental investment
restrictions may not be changed without shareholder approval. All other
restrictions, investment objective, and investment policies, however, are
non-fundamental and can be changed by a vote of the Trustees without
shareholder approval. If there is a change in the investment objec-
<PAGE>
tive, shareholders should consider whether the Fund remains an appropriate
investment in light of their current financial position and needs.
Brokers are chosen based on best price and execution.
When choosing brokerage firms to carry out the Fund's transactions, the
primary consideration is execution at the most favorable prices, taking into
account the broker's professional ability and quality of service.
Consideration may also be given to the broker's sale of Fund shares. Pursuant
to procedures determined by the Trustees, the Advisers may place securities
transactions with brokers affiliated with the Advisers. These brokers include
Tucker, Anthony Incorporated, and Sutro & Company, Inc. They are indirectly
owned by John Hancock Mutual Life Insurance Company, which in turn indirectly
owns the Advisers.
ORGANIZATION AND MANAGEMENT OF THE FUND
The Trustees elect officers and retain the investment adviser who is
responsible for the day-to-day operations of the Fund, subject to the
Trustees' policies and supervision.
The Fund is a separate diversified portfolio of the Trust, an open-end
management investment company organized as a Delaware corporation, then
reorganized as a Massachusetts business trust in 1984. The Trust has an
unlimited number of authorized shares of beneficial interest. The Trust's
Declaration of Trust permits the Trustees, without shareholder approval, to
create and classify shares of beneficial interest into separate series of the
Trust. As of the date of this Prospectus, the Trustees have authorized the
Fund and one other series. Additional series may be added in the future. The
Trust's Declaration of Trust also permits the Trustees to classify and
reclassify any series or portfolio of shares into one or more classes.
Accordingly, the Trustees have authorized the issuance of three classes of
the Fund, designated as Class A shares, Class B shares and Class C shares.
The shares of each class represent an interest in the same portfolio of
investments of the Fund and have equal rights as to voting, redemption,
dividends and liquidation. However, each class bears different distribution
and transfer agent fees, and Class A and Class B shareholders have exclusive
voting rights with respect to their distribution plans.
Shareholders have certain voting rights to remove Trustees. The Fund is not
required and does not intend to hold annual meetings of shareholders,
although special meetings may be held for such purposes as electing or
removing Trustees, changing fundamental investment restrictions and policies
or approving a management contract. The Fund, under certain circumstances,
will assist in shareholder communications with other shareholders.
John Hancock Advisers, Inc. advises investment companies having a total value
of approximately $10 billion.
The Adviser was organized in 1968 and is a wholly-owned indirect subsidiary
of the John Hancock Mutual Life Insurance Company, a financial services
company. The Adviser manages the investment operations of the Fund and
provides the Fund, and other investment companies in the John Hancock group
of funds, with investment research and portfolio management services.
Pursuant to a Subadvisory Agreement between the Adviser and NM Capital
Management, Inc. (the "Sub-Adviser") the Sub-Adviser, subject to the overall
responsibility of the Adviser, manages the composition of the Fund's
portfolio.
Organized in 1977, the Sub-Adviser is also an indirect subsidiary of John
Hancock Mutual Life Insurance Company and provides investment advice and
advisory services to private accounts totalling approximately $750 million.
<PAGE>
The organization of the Sub-Adviser is such that all investment decisions are
made by a portfolio management team consisting of three people. Thomas S.
Christopher has over twenty-five years of experience in investment
management, including trust and investment counseling and has been with the
Sub-Adviser since 1985. Charles H. Womack also has over twenty years of
investment management experience and a background in investment counselling,
portfolio analysis and institutional sales and has been with the Sub-Adviser
since 1986. Angela J. Bristow serves as Senior Equity Analyst and Equity
Strategist. She has been with the Sub-Adviser since 1991 and has over
thirteen years of investment experience.
John Hancock Funds, Inc. ("John Hancock Funds") distributes shares for all of
the John Hancock mutual funds through selected broker-dealers ("Selling
Brokers"). Certain Fund officers are also officers of the Adviser and John
Hancock Funds.
ALTERNATIVE PURCHASE ARRANGEMENTS
You can purchase shares of the Fund at a price equal to their net asset value
per share, plus a sales charge. At your election, this charge may be imposed
either at the time of the purchase (See "Initial Sales Charge
Alternative--Class A Shares") or on a contingent deferred basis (See
"Deferred Sales Charge Alternative--Class B Shares"). If you do not specify
on your account application which class of shares you are purchasing, it will
be assumed that you are investing in Class A shares.
Investments in Class A shares of the Fund are subject to an initial sales
charge.
Class A Shares. If you elect to purchase Class A shares, you will incur an
initial sales charge unless the amount you purchase is $1 million or more. If
you purchase $1 million or more of Class A shares, you will not be subject to
an initial sales charge, but you will incur a sales charge if you redeem your
shares within one year of purchase. Class A shares are subject to ongoing
distribution and service fees at a combined annual rate of up to 0.30% of the
Fund's average daily net assets attributable to the Class A shares. Certain
purchases of Class A shares qualify for reduced initial sales charges. See
"Share Price--Qualifying for a Reduced Sales Charge."
Investments in Class B shares are subject to a contingent deferred sales
charge.
Class B Shares. You will not incur a sales charge when you purchase Class B
shares, but the shares are subject to a sales charge if you redeem them
within six years of purchase (the "contingent deferred sales charge" or the
"CDSC"). Class B shares are subject to ongoing distribution and service fees
at a combined annual rate of up to 1.00% of the Fund's average daily net
assets attributable to the Class B shares. Investing in Class B shares
permits all of your dollars to work from the time you make your investment,
but the higher ongoing distribution fee will cause these shares to have a
higher expense ratio than that of Class A shares. To the extent that any
dividends are paid by the Fund, these higher expenses will also result in
lower dividends than those paid on Class A shares.
Class B shares are not available to full service defined contribution plans
administered by John Hancock Investor Services Corporation or John Hancock
Mutual Life Insurance Company with more than 100 eligible employees at the
inception of the Fund account.
Factors to Consider in Choosing an Alternative
You should consider which class of shares will be more beneficial for you.
The alternative purchase arrangement allows you to choose the most beneficial
way to buy shares given the amount of your purchase, the length of time you
expect to hold the shares and other circumstances. You should consider
whether, during the
<PAGE>
anticipated life of your Fund investment, the CDSC and accumulated fees on
Class B shares would be less than the initial sales charge and accumulated
fees on Class A shares purchased at the same time, and to what extent this
differential would be offset by the Class A shares' lower expenses. To help
you make this determination, the table under the caption "Expense
Information" on page 2 of this Prospectus shows examples of the charges
applicable to each class of shares. Class A shares will normally be more
beneficial if you qualify for a reduced sales charge. See "Share Price--
Qualifying for a Reduced Sales Charge."
Class A shares are subject to lower distribution and service fees and,
accordingly, pay correspondingly higher dividends per share, to the extent
that any dividends are paid. However, because initial sales charges are
deducted at the time of purchase, you would not have all of your funds
invested initially and, therefore, would initially own fewer shares. If you
do not qualify for reduced initial sales charges and expect to maintain your
investment for an extended period of time, you might consider purchasing
Class A shares because the accumulated distribution and service charges on
Class B shares may exceed the initial sales charge and accumulated
distribution and service charges on Class A shares during the life of your
investment.
Alternatively, you might determine that it would be more advantageous to
purchase Class B shares in order to have all of your funds invested
initially. However, you would be subject to higher distribution charges and,
for a six-year period, a CDSC.
In the case of Class A shares, distribution expenses incurred by John Hancock
Funds in connection with the sale of the shares will be paid from the
proceeds of the initial sales charge and the ongoing distribution and service
fees. In the case of Class B shares, expenses will be paid from the proceeds
of the ongoing distribution and service fees, as well as the CDSC incurred
upon redemption within six years of purchase. The purpose and function of the
CDSC and ongoing distribution and service fees with respect to the Class B
shares are the same as those of the initial sales charge and ongoing
distribution and service fees with respect to the Class A shares. Sales
personnel distributing the Fund's shares may receive different compensation
for selling each class of shares.
Dividends if any, on Class A and Class B shares will be calculated in the
same manner, at the same time and on the same day and will be in the same
amount, except for differences resulting from the fact that each class will
bear only its own distribution and service fees, shareholder meeting expenses
and any incremental transfer agency costs relating to a class of shares will
be borne exclusively by such class. See "Dividends and Taxes."
THE FUND'S EXPENSES
For managing its investment and business affairs, the Fund pays a fee equal
to 0.70% of its average daily net asset value. The Adviser pays the
Subadviser 40% of the fee received by the Adviser for managing the Fund. The
Fund is not responsible for payment of the Sub-Adviser's fee.
The Adviser has voluntarily agreed to limit Fund expenses, including the
management fee (but not including the transfer agent fee and the 12b-1 fee),
to 0.40% of the Fund's average daily net assets. The Adviser reserves the
right to terminate this voluntary limitation in the future.
<PAGE>
The Fund pays distribution and service fees for marketing and sales-related
shareholder servicing.
The Class A and Class B shareholders have adopted distribution plans (each a
"Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the
"1940 Act"). Under the Plans the Fund will pay distribution and service fees
at an aggregate annual rate of 0.30% of the average daily net assets
attributable to the Class A shares and an aggregate annual rate of 1.00% of
the average daily net assets attributable to the Class B shares. In each
case, up to 0.25% is for service expenses and the remaining amount is for
distribution expenses. The distribution fees will be used to reimburse John
Hancock Funds for its distribution expenses, including but not limited to:
(i) initial and ongoing sales compensation to Selling Brokers and others
(including affiliates of John Hancock Funds) engaged in the sale of Fund
shares, (ii) marketing, promotional and overhead expenses incurred in
connection with the distribution of Fund shares and (iii) with respect to
Class B shares only, interest expenses on unreimbursed distribution expenses.
The service fees will be used to compensate Selling Brokers for providing
personal and account maintenance services to shareholders. In the event John
Hancock Funds is not fully reimbursed for payments made or expenses incurred
by it under the Class A Plan, these expenses will not be carried beyond one
year from the date these expenses were incurred. However, unreimbursed
expenses under the Class B Plan will be carried forward together with
interest at a discount from the market interest rates on the balance of these
unreimbursed expenses.
DIVIDENDS AND TAXES
Dividends from the Fund's net investment income are generally declared
quarterly. Capital gains, if any, are generally declared annually. Dividends
are reinvested in additional shares of your class unless you elect the option
to receive them in cash. If you elect the cash option and the U.S. Postal
Service cannot deliver your checks, your election will be converted to the
reinvestment option. Because of the higher expenses associated with Class B
shares, any dividend on these shares will be lower than on the Class A
shares. See "Share Price."
Taxation. Dividends from the Fund's net investment income and net short-term
capital gains are taxable to you as ordinary income. Dividends from the
Fund's net long-term capital gains are taxable as long-term capital gains.
These dividends are taxable whether you take them in cash or reinvest in
additional shares. Certain dividends may be paid in January of a given year,
but they may be taxable to you as if you received them the previous December.
Corporate shareholders may be entitled to take the corporate dividends
received deduction for dividends received from the Fund that are attributable
to dividends received by the Fund from U.S. domestic corporations, subject to
certain restrictions under the Internal Revenue Code of 1986, as amended (the
"Code"). The Fund will send you a statement by January 31 showing the tax
status of the dividends you received for the prior year.
The Fund intends to qualify as a regulated investment company under
Subchapter M of the Code. As a regulated investment company, the Fund will
not be subject to Federal income taxes on any net investment income and net
realized capital gains that are distributed to its shareholders at least
annually. When you redeem (sell) or exchange shares, you may realize a
capital gain or loss.
On the account application, you must certify that the social security or
other taxpayer identification number you provide is correct and that you are
not subject to backup
<PAGE>
withholding of Federal income tax. If you do not provide this information or
are otherwise subject to back-up withholding, the Fund may be required to
withhold 31% of your dividends, redemptions and exchanges.
The Fund may be subject to foreign withholding taxes on certain of its
foreign investments, if any, which will reduce the yield on those
investments.
In addition to Federal taxes, you may be subject to state, local or foreign
taxes, with respect to your investment in and distributions from the Fund. In
many states, any portion of the Fund's dividends which represents interest
received by the Fund on direct U.S. Government obligations may be exempt from
tax. You should consult your tax adviser for specific advice.
PERFORMANCE
The Fund may advertise its total return.
Total return is based on the overall change in value of a hypothetical
investment in the Fund. The Fund's total return shows the overall dollar or
percentage change in value, assuming the reinvestment of all dividends.
Cumulative total return shows the Fund's performance over a period of time.
Average annual total return shows the cumulative return divided over the
number of years included in the period. Because average annual total return
tends to smooth out variations in performance, you should recognize that it
is not the same as actual year-to-year results.
Total return calculations for Class A shares generally include the effect of
paying the maximum sales charge (except as shown in "The Fund's Financial
Highlights"). Investments at lower sales charges would result in higher
performance figures. Total return for the Class B shares reflect deduction of
the applicable CDSC imposed on a redemption of shares held for the applicable
period. All calculations assume that all dividends are reinvested at net
asset value on the reinvestment dates during the periods. The total return of
Class A, Class B and Class C shares will be calculated separately and,
because each class is subject to different expenses, the total return with
respect to that class for the same period may differ. The relative
performance of the Class A and Class B shares will be affected by a variety
of factors, including the higher operating expenses attributable to the Class
B shares, whether the Fund's investment performance is better in the earlier
or later portions of the period measured and the level of net assets of the
Classes during the period. The Fund will include the total return of Class A,
Class B and Class C shares in any advertisement or promotional materials
including Fund performance data. The value of Fund shares, when redeemed, may
be more or less than their original cost. Total return is a historical
calculation and is not an indication of future performance. See "Factors to
Consider in Choosing an Alternative."
HOW TO BUY SHARES
Opening an account.
The minimum initial investment is $1,000. Complete the Account Application
attached to this Prospectus. Indicate whether you are purchasing Class A or
Class B shares. If you do not specify which class of shares you are purchasing,
it will be assumed that you are investing in Class A shares.
By Check 1. Make your check payable to John Hancock Investor Services
Corporation ("Investor Services").
2. Deliver the completed application and check to your
registered representative, Selling Broker or mail it directly
to Investor Services.
<PAGE>
By Wire 1. Obtain an account number by contacting your registered
representative, Selling Broker or by calling 1-800-225-5291.
2. Instruct your bank to wire funds to:
First Signature Bank & Trust
John Hancock Deposit Account No. 900000260
ABA Routing No. 211475000
For credit to: John Hancock Special Value Fund
(Class A or Class B shares)
Your Account Number
Name(s) under which account is registered.
3. Deliver the completed application to your registered
representative, Selling Broker or mail it directly to Investor
Services.
Monthly
Automatic
Accumulation 1. Complete the "Automatic Investing" and "Bank Information"
Program sections on the Account Privileges Application designating a
(MAAP) bank account from which funds may be drawn.
2. The amount you elect to invest will be automatically
withdrawn from your bank or credit union account.
By Telephone 1. Complete the "Invest-By-Phone" and "Bank Information"
sections on the Account Privileges Application
designating a bank account from which funds may be drawn. Note
that in order to invest by phone, your account must be in a
bank or credit union that is a member of the Automated Clearing
House system (ACH).
2. After your authorization form has been processed, you may
purchase additional Class A or Class B shares by calling
Investor Services toll-free at 1-800-225-5291.
3. Give the Investor Services representative the name(s) in
which your account is registered, the Fund name, the class of
shares you own, your account number, and the amount you wish
to invest.
4. Your investment normally will be credited to your account
the business day following your phone request.
By Check 1.Either complete the detachable stub included on your account
statement or include a note with your investment listing the
name of the Fund, the class of shares you own, your account
number and the name(s) in which the account is registered.
2. Make your check payable to John Hancock Investor Services
Corporation.
3. Mail the account information and check to:
John Hancock Investor Services Corporation
P.O. Box 9115
Boston, MA 02205-9115
or deliver it to your registered representative or Selling
Broker.
By Wire Instruct your bank to wire funds to:
First Signature Bank & Trust
John Hancock Deposit Account No. 900000260
ABA Routing No. 211475000
For credit to: John Hancock Special Value Fund
(Class A or Class B shares)
Your Account Number
Name(s) under which account is registered.
<PAGE>
Other
Requirements. All purchases must be made in U.S. dollars.
Checks written on foreign banks will delay purchases until U.S.
funds are received and a collection charge may be imposed.
Shares of the Fund are priced at the offering price based on
the net asset value computed after John Hancock Funds receives
notification of the dollar equivalent from the Fund's custodian
bank. Wire purchases normally take two or more hours to
complete and, to be accepted the same day, must be received by
4:00 P.M., New York time. Your bank may charge a fee to wire
funds. Telephone transactions are recorded to verify
information. Certificates are not issued unless a request is
made in writing to Investor Services.
Institutional Investors. Certain institutional investors may
purchase Class C shares of the Fund, which have no sales charge
or 12b-1 fee. See "Institutional Investors" for further
information.
You will receive statements regarding your account which you should keep to
help with your personal recordkeeping.
You will receive a statement of your account after any transaction that
affects your share balance or registration (statements related to
reinvestment of dividends and automatic investment/withdrawal plans will be
sent to you quarterly). A tax information statement will be mailed to you by
January 31 of each year.
SHARE PRICE
The offering price of shares is their net asset value plus a sales charge, if
applicable, which will vary with the purchase alternative you choose.
The net asset value ("NAV") is the value of one share. The NAV per share is
calculated by dividing the net assets of each class by the number of
outstanding shares of that class. The NAV will be different for each class to
the extent that different amounts of undistributed income are accrued on
shares of each class between dividend declarations.
Equity securities in the Fund's portfolio are generally valued at their last
exchange sale price as furnished by a pricing service which utilizes
electronic pricing techniques. If no sale has occurred on the date assets are
valued, or if the security is traded only in the over-the-counter market, it
will normally be valued at its last available bid price. Fixed income
securities are generally valued by a pricing service which uses electronic
pricing techniques based upon general institutional trading. Some securities
are valued at fair value based on procedures approved by the Trustees, and
for certain other securities, the amortized cost method is used if the
Trustees determine in good faith that this cost approximates fair value as
described more fully in the Statement of Additional Information. Any assets
or liabilities expressed in terms of foreign currencies are translated into
United States dollars by Investors Bank & Trust Company based on London
currency exchange quotations as of 5:00 p.m. London time (12:00 noon, New
York time) on the date of any determination of the Fund's NAV. The NAV is
calculated once daily as of the close of regular trading on the New York
Stock Exchange (generally at 4:00 P.M., New York time) on each day that the
Exchange is open.
Shares of the Fund are sold at the offering price based on the NAV computed
after your investment request is received in good order by John Hancock
Funds. If you buy shares of the Fund through a Selling Broker, the Selling
Broker must receive your investment before the close of regular trading on
the New York Stock Exchange and transmit it to John Hancock Funds before its
close of business to receive that day's offering price.
The Fund offers two classes of shares in this Prospectus: Class A shares,
which are subject to an initial sales charge and Class B shares which are
subject to a contingent deferred sales charge. If you do not specify a
particular class of shares, it will be assumed that you are purchasing Class
A shares and an initial sales charge will be assessed.
<PAGE>
Initial Sales Charge Alternative--Class A Shares. The offering price you pay
for Class A shares of the Fund equals the NAV plus a sales charge as follows:
<TABLE>
<CAPTION>
Sales Sales Combined Reallowance
Charge Charge Reallowance to Selling
as a as a and Service Broker as a
Percentage Percentage Fee as a Percentage
of of the Percentage of
Amount Invested Offering Amount of Offering Offering
(Including Sales Charge) Price Invested Price(+) Price(*)
<S> <C> <C> <C> <C>
Less than $50,000 5.00% 5.26% 4.25% 4.01%
$50,000 to $99,999 4.50% 4.71% 3.75% 3.51%
$100,000 to $249,999 3.50% 3.63% 2.85% 2.61%
$250,000 to $499,999 2.50% 2.56% 2.10% 1.86%
$500,000 to $999,999 2.00% 2.04% 1.60% 1.36%
$1,000,000 and over 0.00%(**) 0.00%(**) (***) 0.00%(***)
<FN>
(*) Upon notice to Selling Brokers with whom it has sales agreements, John
Hancock Funds may reallow an amount up to the full applicable sales charge. A
Selling Broker to whom substantially the entire sales charge is reallowed may
be deemed to be an underwriter under the Securities Act of 1933.
(**) No sales charge is payable at the time of purchase of Class A shares of
$1 million or more, but a contingent deferred sales charge may be imposed in
the event of certain redemption transactions made within one year of
purchase.
(***) John Hancock Funds may pay a commission and the first year's service
fee (as described in (+) below) to Selling Brokers who initiate and are
responsible for purchases of $1 million or more in the aggregate as follows:
1% on sales to $4,999,999, 0.50% on the next $5 million and 0.25% on $10
million and over.
(+) At the time of sale, John Hancock Funds pays to Selling Brokers the first
year's service fee in advance, in an amount equal to 0.25% of the net assets
invested in the Fund. Thereafter, it pays the service fee periodically in
arrears in an amount up to 0.25% of the Fund's average annual net assets.
Selling Brokers receive the fee as compensation for providing personal and
account maintenance services to shareholders.
</FN>
</TABLE>
Sales charges ARE NOT APPLIED to any dividends which are reinvested in
additional Class A shares of the Fund.
John Hancock Funds will pay certain affiliated Selling Brokers at an annual
rate of up to 0.05% of the daily net assets of accounts attributable to these
brokers.
In addition to the reallowance allowed to all Selling Brokers, John Hancock
Funds will pay the following: round trip airfare to a resort will be offered
to each registered representative of a Selling Broker (if the Selling Broker
has agreed to participate) who sells certain amounts of shares of John
Hancock funds. John Hancock Funds will make these incentive payments out of
its own resources. Other than distribution fees, the Fund does not bear
distribution expenses.
Under certain circumstances described below, investors in Class A shares may
be entitled to pay reduced sales charges. See "Qualifying For a Reduced Sales
Charge".
Contingent Deferred Sales Charge--Investments of $1 million or more in Class
A Shares. Purchases of $1 million or more of Class A shares will be made at
net asset value with no initial sales charge, but if the shares are redeemed
within 12 months
<PAGE>
after the end of the calendar month in which the purchase was made (the
contingent deferred sales charge period), a contingent deferred sales charge
will be imposed. The rate of the CDSC will depend on the amount invested as
follows:
Amount Invested CDSC Rate
$1 million to $4,999,999 1.00%
Next $5 million to $9,999,999 0.50%
Amounts of $10 million and over 0.25%
The charge will be assessed on an amount equal to the lesser of the current
market value or the original purchase cost of the Class A shares redeemed.
Accordingly, no CDSC will be imposed on increases in account value above the
initial purchase price, including any dividends which have been reinvested in
additional Class A shares.
In determining whether a CDSC applies to a redemption, the calculation will
be determined in a manner that results in the lowest possible rate being
charged. Therefore, it will be assumed that the redemption is first made from
any shares in your account that are not subject to the CDSC. The CDSC is
waived on redemption in certain circumstances. See "Waiver of Contingent
Deferred Sales Charges."
You may qualify for a reduced sales charge on your investment in Class A
shares.
Qualifying For a Reduced Sales Charge. If you invest more than $50,000 in
Class A shares of the Fund or a combination of funds in the John Hancock
family of funds (except money market funds), you may qualify for a reduced
sales charge on your investments through a LETTER OF INTENTION. You may also
be able to use the ACCUMULATION PRIVILEGE and COMBINATION PRIVILEGE to take
advantage of the value of your previous investments in Class A shares of the
John Hancock funds when meeting the breakpoints for a reduced sales charge.
For the COMBINATION PRIVILEGE and ACCUMULATION PRIVILEGE the applicable sales
charge will be based on the total of:
1. Your current purchase of Class A shares of the Fund,
2. The net asset value (at the close of business on the previous day) of (a)
all Class A shares of the Fund you hold, and (b) all Class A shares of any
other John Hancock mutual fund you hold; and
3. The net asset value of all shares held by another shareholder eligible to
combine his or her holdings with you into a single "purchase."
Example:
If you hold Class A shares of a John Hancock mutual fund with a net asset
value of $20,000 and, subsequently, invested $30,000 in Class A shares of the
Fund, the sales charge on this subsequent investment would be 4.50% and not
5.00% (the rate that would otherwise be applicable to investments of less
than $50,000. See "Initial Sales Charge Alternative--Class A Shares.")
Class A shares may be available without a sales charge to certain individuals
and organizations.
If you fall under one of the following categories, you may purchase Class A
shares of the Fund without paying a sales charge:
<PAGE>
+A Trustee or officer of the Trust; a Director or officer of the Adviser and
its affiliates or Selling Brokers; employees or sales representatives of any
of the foregoing; retired officers, employees or Directors of any of the
foregoing; a member of the immediate family of any of the foregoing; or any
Fund, pension, profit sharing or other benefit plan for the individuals
described above.
+Any state, county, city or any instrumentality, department, authority, or
agency of these entities which is prohibited by applicable investment laws
from paying a sales charge or commission when it purchases shares of any
registered investment management company.*
+A bank, trust company, credit union, savings institution or other type of
depository institution, its trust departments or common trust funds if it is
purchasing $1 million or more for non-discretionary customers or accounts.*
+A broker, dealer or registered investment adviser that has entered into an
agreement with John Hancock Funds providing specifically for the use of Fund
shares in fee-based investment products made available to their clients.
+A former participant in an employee benefit plan with John Hancock Mutual
Funds, when he or she withdraws from his or her plan and transfers any or all
of his or her plan distributions to the Fund.
*For investments made under these provisions, John Hancock Funds may make a
payment out of its own resources to the Selling Broker in an amount not to
exceed 0.25% of the amount invested.
Class A shares may be purchased without a sales charge by former participants
in an employee benefit plan with John Hancock mutual funds if they withdraw
from their respective plans and transfer any or all of their plan
distributions directly to the Fund. Class A shares may also be purchased
without a sales charge by clients of the Sub-Adviser if funds are
transferred directly to the Fund from accounts managed by the Sub-Adviser.
Class A shares of the Fund may also be purchased without an initial sales
charge in connection with certain liquidation, merger or acquisition
transactions involving other investment companies or personal holding
companies.
Contingent Deferred Sales Charge Alternative--Class B Shares. Class B shares
are offered at net asset value per share without of a sales charge, so that
your entire initial investment will go to work at the time of purchase.
However, Class B shares redeemed within six years of purchase will be subject
to a CDSC at the rates set forth below. This charge will be assessed on an
amount equal to the lesser of the current market value or the original
purchase cost of the shares being redeemed. Accordingly, you will not be
assessed a CDSC on increases in account value above the initial purchase
price, including shares derived from dividend reinvestments. In determining
whether a CDSC applies to a redemption, the calculation will be determined in
a manner that results in the lowest possible rate being charged. It will be
assumed that your redemption comes first from shares you have held beyond the
six-year CDSC redemption period or those you acquired through dividend
reinvestment, and next from the shares you have held the longest during the
six-year period.
<PAGE>
Example:
You have purchased 100 shares at $10 per share. The second year after your
purchase, your investment's net asset value per share has increased by $2 to
$12, and you have gained 10 additional shares through dividend reinvestment.
If you redeem 50 shares at this time, our CDSC will be calculated as follows:
* Proceeds of 50 shares redeemed at $12 per
share $ 600
* Minus proceeds of 10 shares not subject to
CDSC because they were acquired through
dividend reinvestment (10 x $12) -120
* Minus appreciation on remaining shares,
also not subject to CDSC (40 x $2) -80
* Amount subject to CDSC $ 400
Proceeds from the CDSC are paid to John Hancock Funds. John Hancock Funds
uses all or part of them to defray its expenses related to providing the Fund
with distribution services in connection with the sale of the Class B shares,
such as compensating Selling Brokers for selling these shares. The
combination of the CDSC and the distribution and service fees makes it
possible for the Fund to sell Class B shares without an initial sales charge.
The amount of the CDSC, if any, will vary depending on the number of years
from the time you purchase your Class B shares until the time you redeem
them. Solely for purposes of determining this holding period, any payments
you make during the month will be aggregated and deemed to have been made on
the last day of the month.
Year In Which Contingent Deferred Sales
Class B Shares Redeemed Charge As a Percentage of
Following Purchase Dollar Amount Subject to CDSC
First 5.0%
Second 4.0%
Third 3.0%
Fourth 3.0%
Fifth 2.0%
Sixth 1.0%
Seventh and thereafter None
A commission equal to 3.75% of the amount invested and a first year's service
fee equal to 0.25% of the amount invested are paid to Selling Brokers. The
initial service fee is paid in advance at the time of sale for the provision
of personal and account maintenance services to shareholders during the
twelve months following the sale, and thereafter the service fee is paid in
arrears.
Under certain circumstances, the CDSC on Class B share redemptions will be
waived.
Waiver of Contingent Deferred Sales Charge. The CDSC will be waived on
redemptions of Class B shares and of Class A shares that are subject to CDSC,
unless indicated otherwise, in the circumstances defined below:
Redemptions of Class B shares made under a Systematic Withdrawal Plan (see
"How To Redeem Shares"), as long as your annual redemptions do not exceed 10%
of your account value at the time you established your Systematic Withdrawal
Plan and 10% of the value of subsequent investments (less redemptions) in
that account at the time you notify Investor Services. This waiver does not
apply to Systematic Withdrawal Plan redemptions of Class A shares that are
subject to a CDSC.
<PAGE>
+Redemptions made to effect distributions from an Individual Retirement
Account either before or after age 59-1/2, as long as the distributions are
based on your life expectancy or the joint-and-last survivor life expectancy
of you and your beneficiary. These distributions must be free from penalty
under the Code.
+Redemptions made to effect mandatory distributions under the Code after age
70-1/2 from a tax-deferred retirement plan.
+Redemptions made to effect distributions to participants or beneficiaries
from certain employer-sponsored retirement plans, including those qualified
under Section 401(a) of the Code, custodial accounts under Section 403(b)(7)
of the Code and deferred compensation plans under Section 457 of the Code.
The waiver also applies to certain returns of excess contributions made to
these plans. In all cases, the distributions must be free from penalty under
the Code.
+Redemptions due to death or disability.
+Redemptions made under the Reinvestment Privilege, as described in
"Additional Services and Programs" of this Prospectus.
+Redemptions made pursuant to the Fund's right to liquidate your account if
you own fewer than 50 shares.
+Redemptions made under certain liquidation, merger or acquisition
transactions involving other investment companies or personal holding
companies.
+Redemptions from certain IRA and retirement plans that purchased shares
prior to October 1, 1992.
+If you qualify for a CDSC waiver under one of these situations, you must
notify Fund Services either directly or through your Selling Broker at the
time you make your redemption. The waiver will be granted once Investor
Services has confirmed that you are entitled to the waiver.
Conversion of Class B Shares. Your Class B shares and an appropriate portion
of reinvested dividends on those shares will be converted into Class A shares
automatically no later than the month following eight years after the shares
were purchased, resulting in lower annual distribution fees. If you exchanged
Class B shares into this Fund from another John Hancock fund, the calculation
will be based on the time the shares in the original fund were purchased.
<PAGE>
HOW TO REDEEM SHARES
To assure acceptance of your redemption request, please follow these
procedures.
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next NAV calculated after your redemption
request is received in good order by Investor Services less any applicable
CDSC. The Fund may hold payment until reasonably satisfied that investments
which were recently made by check or Invest-by-Phone have been collected
(which may take up to 10 calendar days).
Once your shares are redeemed, the Fund generally sends you payment on the
next business day. When you redeem your shares, you will generally realize a
gain or loss depending generally on the difference between what you paid for
your shares and what you receive for them, subject to certain tax rules.
Under unusual circumstances, the Fund may suspend redemptions or postpone
payment for up to seven days or longer, as permitted by Federal securities
laws.
By Telephone All Fund shareholders are automatically eligible for
the telephone redemption privilege. Call 1-800-225-5291, from
8:00 A.M. to 4:00 P.M. (New York time), Monday through Friday,
excluding days on which the New York Stock Exchange is closed.
Investor Services employs the following procedures to confirm
that instructions received by telephone are genuine. Your name,
the account number, taxpayer identification number applicable
to the account and other relevant information may be requested.
In addition, telephone instructions are recorded.
You may redeem up to $100,000 by telephone, but the address on
the account must not have changed for the last 30 days. A check
will be mailed to the exact name(s) and address shown on the
account. If reasonable procedures, such as those described
above, are not followed, the Fund may be liable for any loss
due to unauthorized or fraudulent telephone instructions. In
all other cases, neither the Fund nor Investor Services will be
liable for any loss or expense for acting upon telephone
instructions made in accordance with the telephone transaction
procedures mentioned above.
Telephone redemption is not available for IRAs or other
tax-qualified retirement plans or shares of the Fund that are
in certificate form. During periods of extreme economic
conditions or market changes, telephone requests may be
difficult to implement due to a large volume of calls.
During these times, you should consider placing redemption
requests in writing or using EASI-Line. EASI-Line is a
telephone number which is 1-800-338-8080.
By Wire If you have a telephone redemption form on file with the Fund,
redemption proceeds of $1,000 or more can be wired on the next
business day to your designated bank account and a fee
(currently $4.00) will be deducted. You may also use electronic
funds transfer to your assigned bank account and the funds are
usually collectible after two business days. Your bank may or
may not charge for this service. Redemptions of less than
$1,000 will be sent by check or electronic funds transfer.
This feature may be elected by completing the "Telephone
Redemption" section on the Account Privileges Application
attached to this Prospectus.
In Writing Send a stock power or "letter of instruction" specifying the
name of the Fund, the dollar amount or the number of shares to
be redeemed, your name, class of shares, your account number
and the additional requirements listed below that apply to
your particular account.
<PAGE>
Type of Registration Requirements
Individual, Joint Tenants,
Sole Proprietorship,
Custodial (Uniform A letter of instruction signed (with
Gifts or Transfer to titles where applicable) by all persons
Minors Act), General authorized to sign for the account, exactly as
Partners. it is registered with the signature(s)
guaranteed.
Corporation, Association A letter of instruction and a corporate
resolution, signed by person(s) authorized
to act on the account with the
signature(s) guaranteed.
Trusts A letter of instruction signed by the
Trustee(s) with a signature guarantee. (If
the Trustee's name is not registered on
your account, also provide a copy of the
trust document, certified within the last
60 days.)
If you do not fall into any of these registration categories, please call
1-800-225-5291 for further instructions.
Who may guarantee your signature
Additional information about redemptions.
A signature guarantee is a widely accepted way to protect you and the Fund by
verifying the signature on your request. It may not be provided by a notary
public. If the net asset value of the shares redeemed is $100,000 or less, John
Hancock Funds may guarantee the signature. The following institutions may
provide you with a signature guarantee, provided that the institution meets
credit standards established by Investor Services: (i) a bank; (ii) a securities
broker or dealer, including a government or municipal securities broker or
dealer, that is a member of a clearing corporation or meets certain net capital
requirements; (iii) a credit union having authority to issue signature
guarantees; (iv) a savings and loan association, a building and loan
association, a cooperative bank, a federal savings bank or association; or (v) a
national securities exchange, a registered securities exchange or a clearing
agency.
Through Your Broker Your broker may be able to initiate the
redemption. Contact your broker for
instructions.
If you have certificates for your shares, you must submit them with your stock
power or a letter of instruction. Unless you specify to the contrary, any
outstanding Class A shares will be redeemed before Class B shares. You may not
redeem certificated shares by telephone.
Due to the proportionately high cost of maintaining smaller accounts, the Fund
reserves the right to redeem at net asset value all shares in an account which
holds fewer than 50 shares (except accounts under retirement plans) and to mail
the proceeds to the shareholder, or the transfer agent may impose an annual fee
of $10.00. No account will be involuntarily redeemed or any additional fee
imposed, if the value of the account is in excess of the Fund's minimum initial
investment. No CDSC will be imposed on involuntary redemptions of shares.
Shareholders will be notified before these redemptions are to be made or this
fee is imposed, and will have 30 days to purchase additional shares to bring
their account up to the required minimum. Unless the number of shares acquired
by additional purchase and any dividend reinvestments, if any, exceeds the
number of shares redeemed, repeated redemptions from a smaller account may
eventually trigger this policy.
ADDITIONAL SERVICES AND PROGRAMS
Exchange Privilege
You may exchange shares of the Fund for shares of the same class in another
John Hancock mutual fund.
If your investment objective changes, or if you wish to achieve further
diversification, John Hancock offers other funds with a wide range of
investment goals. Contact your registered representative or Selling Broker
and request a prospectus for the John Hancock mutual funds that interest you.
Read the prospectus carefully before exchanging your shares. You can exchange
shares of each class of the Fund only for shares of the same class of another
John Hancock mutual fund. For this purpose, John Hancock mutual funds with
only one class of shares will be treated as Class A whether or not they have
been so designated.
<PAGE>
Exchanges between funds which are not subject to a CDSC are based on their
respective net asset values. No sales charge or transaction charge is
imposed. Class B shares of the Fund which are subject to a CDSC may be
exchanged into Class B shares of another John Hancock fund without incurring
the CDSC; however, these shares will be subject to the CDSC schedule of the
shares acquired (except that exchanges into John Hancock Short-Term Strategic
Income Fund and John Hancock Limited Term Government Fund which will be
subject to the initial Fund's CDSC). For purposes of computing the CDSC
payable upon redemption of shares acquired in an exchange, the holding period
of the original shares is added to the holding period of the shares acquired
in an exchange. However, if you exchange Class B shares purchased prior to
January 1, 1994 for Class B shares of any other John Hancock fund, you will
be subject to the CDSC schedule that was in effect at your initial purchase
date. The foregoing does not apply to exchanges into John Hancock Short-Term
Strategic Income Fund and John Hancock Limited Term Government Fund, which
will be subject to the initial fund's CDSC schedule.
You may exchange Class B shares of the Fund into shares of John Hancock Cash
Management Fund at net asset value. Shares so acquired will continue to be
subject to a CDSC upon redemption. The rate of the CDSC will be the rate in
effect on the original fund at the time of the exchange.
The Fund reserves the right to require you to keep previously exchanged
shares (and reinvested dividends) in the Fund for 90 days before you are
permitted to execute a new exchange. The Fund may also terminate or alter the
terms of the exchange privilege upon 60 days' notice to shareholders.
An exchange of shares is treated as a redemption of shares of one fund and
the purchase of shares in another for Federal income tax purposes. An
exchange may result in a gain or loss.
When you make an exchange, your account registration must be identical in
both the existing and new account. The exchange privilege is available only
in states where the exchange can be made legally.
Under exchange agreements with John Hancock Funds, certain dealers, brokers
and investment advisers may exchange their clients' Fund shares, subject to
the terms of those agreements and John Hancock Funds' right to reject or
suspend those exchanges at any time. Because of the restrictions and
procedures under those agreements, the exchanges may be subject to timing
limitations and other restrictions that do not apply to exchanges requested
by shareholders directly, as described above.
Because Fund performance and shareholders can be hurt by excessive trading,
the Fund reserves the right to terminate the exchange privilege for any
person or group that, in John Hancock Funds' judgment, is involved in a
pattern of exchanges that coincide with a "market timing" strategy that may
disrupt the Fund's ability to invest effectively according to its investment
objective and policies, or might otherwise affect the Fund and its
shareholders adversely. The Fund may also temporarily or permanently
terminate the exchange privilege for any person who makes seven or more
exchanges out of the Fund per calendar year. Accounts under common control or
<PAGE>
ownership will be aggregated for this purpose. Although the Fund will attempt
to give prior notice whenever it is reasonably able to do so, it may impose
these restrictions at any time.
By Telephone
1. When you fill out the application for your initial purchase of Fund
shares, you automatically authorize exchanges by telephone unless you check
the box indicating that you do not wish to authorize telephone exchanges.
2. Call 1-800-225-5291. Have the account number of your current fund and the
exact name in which it is registered available to give to the telephone
representative.
In Writing
1. In a letter request an exchange and list the following:
- --the name and class of the fund whose shares you currently own
- --your account number
- --the name(s) in which the account is registered
- --the name of the fund in which you wish your exchange to be invested
- --the number of shares, all shares or the dollar amount you wish to exchange
Sign your request exactly as the account is registered.
2. Mail the request and information to:
John Hancock Investor Services Corporation
P.O. Box 9116
Boston, Massachusetts 02205-9116
Reinvestment Privilege
If you redeem shares of the Fund, you may be able to reinvest the proceeds in
shares of this Fund or another John Hancock fund without paying an additional
sales charge.
1. If you redeem Class A shares of the Fund and then reinvest them into any
of the other John Hancock funds that are normally subject to a sales charge
you will not pay a sales charge on your investment as long as you reinvest
within 120 days of the redemption date. If you paid a CDSC upon a redemption,
you may reinvest at net asset value in the same class of shares from which
you redeemed within 120 days. Your account will be credited with the amount
of the CDSC that was charged previously, and the reinvested shares will
continue to be subject to a CDSC. For purposes of computing the CDSC payable
upon a subsequent redemption, the holding period of the shares you acquired
through reinvestment will include the holding period of the redeemed shares.
2. Any portion of your redemption may be reinvested in Fund shares or in
shares of any of the other John Hancock funds, subject to the minimum
investment limit of that fund.
3. To reinvest, you must notify Investor Services in writing. Include the
account number and class from which your shares were originally redeemed.
<PAGE>
Systematic Withdrawal Plan
You can pay routine bills from your account or make periodic disbursements
from your retirement account to comply with IRS regulations.
1. You may elect the Systematic Withdrawal Plan at any time by completing the
Account Privileges Application which is attached to this Prospectus. You can
also obtain the application from your registered representative or by calling
1-800-225-5291.
2. To be eligible, you must have at least $5,000 in your account.
3. Payments from your account can be made monthly, quarterly, semi-annually
or annually or on a selected monthly and they can be sent to you or any other
designated payee.
4. There is no limit on the number of payees you may authorize, but all
payments must be made at the same time or intervals.
5. It is not advantageous to maintain a Systematic Withdrawal Plan
concurrently with purchases of additional Class A or Class B shares because
you may be subject to an initial sales charge on your purchases of Class A
shares or to a CDSC on your redemptions of Class B shares. In addition, your
redemptions are taxable events.
6. Redemptions will be discontinued if the U.S. Postal service cannot deliver
your checks, or if deposits to a bank account are returned for any reason.
Monthly Automatic Accumulation Program (MAAP)
You can make automatic investments and simplify your investing.
1. You may authorize an investment to be automatically drawn each month from
your bank for investment in Fund shares under the "Automatic Investing" and
"Bank Information" sections of the Account Privileges Application.
2. You may also authorize automatic investing through payroll deduction by
completing the "Direct Deposit Investing" section of the Account Privileges
Application.
3. You may terminate your Monthly Automatic Accumulation Program at any time.
4. There is no charge to you for this program, and there is no cost to the
Fund.
5. If you have payments withdrawn from a bank account and we are notified
that the account has been closed, your withdrawals will be discontinued.
Group Investment Program
Organized groups of at least four persons may establish accounts.
1. An individual account will be established for each participant, but the
initial sales charge for Class A shares will be based on the aggregate dollar
amount of all participants' investments. To determine how to qualify for this
program, contact your registered representative or call 1-800-225-5291.
2. The initial aggregate investment of all participants in the group must be
at least $250.
3. There is no additional charge for this program. There is no obligation to
make investments beyond the minimum, and you may terminate the program at any
time.
Retirement Plans
1. You may use the Fund as a funding medium for various types of qualified
retirement plans, including Individual Retirement Accounts, Keogh Plans (H.R.
10), Pension and Profit-Sharing Plans (including 401(k) plans), Tax Sheltered
Annuity Retirement Plans (403(b) or TSA plans) and 457 Plans.
<PAGE>
2. The initial investment minimum or aggregate minimum for any of these plans
is $500. However, accounts being established as group IRA, SEP, SARSEP, TSA,
401(k) and 457 Plans will be accepted without an initial minimum investment.
INSTITUTIONAL INVESTORS
Class C shares of the Fund are available only to the following types of
institutional investors: (i) Benefits plans not affiliated with the Adviser
which have at least $25,000,000 in plan assets, and either have a separate
trustee vested with investment discretion and certain limitations on the
ability of the plan beneficiaries to access their plan investments without
incurring adverse tax consequences or allow their participants to select
among one or more investment options, including the Fund
("participant-directed plans"); (ii) Banks and insurance companies which are
not affiliated with the Adviser purchasing shares for their own account;
(iii) Investment companies not affiliated with the Adviser; (iv) Tax-exempt
retirement plans of the Adviser and its affiliates, including affiliated
brokers; (v) Unit investment trusts sponsored by John Hancock Funds and
certain other sponsors. Participant-directed plans include, but are not
limited to, 401(k), TSA and 457 plans; and (vi) existing full-service clients
of the John Hancock Mutual Life Insurance Company who were group annuity
contract holders as of September 1, 1994 are not limited to 401(k), TSA and
457 plans.
Class C shares are available to eligible institutional investors at net asset
value without the imposition of a sales charge and are not subject to ongoing
distribution fees imposed under a plan adopted pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The minimum initial investment in Class C
shares is $1,000,000, but this requirement may be waived at the discretion of
the Fund's officers. Some individuals who are currently eligible to purchase
Class A or Class B shares may also be participants in plans that are eligible
to purchase Class C shares of the Fund.
John Hancock Funds may pay a one-time payment of up to 0.15% of the amount
invested in Class C shares to a selling broker for its sales of Class C
shares. A person entitled to receive compensation for selling shares of the
Fund may receive different compensation with respect to sales of Class A,
Class B and Class C shares or any additional future class of shares of the
Fund.
Class C shares are also available to existing full-service clients of John
Hancock Mutual Life Insurance Company group annuity contract holders as of
September 1, 1994. John Hancock Funds, out of its own resources, may pay to a
Selling Broker an annual service fee of up to 0.20% of the amount invested in
Class C shares by these clients.
The Reinvestment Privilege, Systematic Withdrawal Plan, Monthly Automatic
Accumulation Program, Group Investment Program and Retirement Plans are not
available for Class C shares.
If you are considering a purchase of Class C shares of the Fund, please call
John Hancock Investor Services Corporation at 1-800-437-9312 to obtain
information about eligibility, instructions for purchase by check or wire and
an Institutional Account Application.
<PAGE>
JOHN HANCOCK SPECIAL VALUE FUND
Investment Adviser
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Sub-Adviser
NM Capital Management Inc.
6501 Americas Parkway, Suite 950
Albuquerque, N.M. 87110-5372
Principal Distributor
John Hancock Funds, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, Massachusetts 02110
Transfer Agent
John Hancock Investor Services Corporation
P.O. Box 9116
Boston, Massachusetts 02205-9116
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116
HOW TO OBTAIN INFORMATION
ABOUT THE FUND
For: Service Information
Telephone Exchange call 1-800-225-5291
Telephone Redemption
Investment-by-Phone
TDD call 1-800-554-6713
JHD-3700P 11/94
JOHN HANCOCK
SPECIAL VALUE
FUND
Class A and Class B Shares
Prospectus
April 1, 1994 as Revised November 7, 1994
A mutual fund seeking capital appreciation with income as a secondary
consideration.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Telephone 1-800-225-5291
["recycled" logo] Printed on recycled paper using soybean ink
<PAGE>
(Notes)
<PAGE>
(Notes)
<PAGE>
(Notes)
<PAGE>
JOHN HANCOCK
GROWTH FUND
CLASS A AND CLASS B SHARES
PROSPECTUS
MAY 1, 1994
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Expense Information 2
The Fund's Financial Highlights 3
Investment Objective and Policies 4
Organization and Management of the Fund 5
Alternative Purchase Arrangements 6
The Fund's Expenses 7
Dividends and Taxes 8
Performance 9
How to Buy Shares 10
Share Price 11
How to Redeem Shares 16
Additional Services and Programs 17
Institutional Investors 20
</TABLE>
This Prospectus sets forth information about John Hancock Growth Fund (the
"Fund"), a series of John Hancock Capital Series (the "Trust"), that you
should know before investing. Please read and retain it for future reference.
Additional information about the Fund has been filed with the Securities and
Exchange Commission (the "SEC"). You can obtain a copy of the Fund's
Statement of Additional Information, dated May 1, 1994, and incorporated by
reference in this Prospectus, free of charge by writing or telephoning: John
Hancock Fund Services, Inc., P.O. Box 9116, Boston, Massachusetts 02205-9116,
1-800-225-5291, (1-800-554-6713 TDD).
Shares of the Fund are not deposits or obligations of, or guaranteed or
endorsed by, any bank, and the shares are not federally insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
<PAGE>
EXPENSE INFORMATION
The purpose of the following information is to help you to understand the
various fees and expenses that you will bear, directly or indirectly, when
you purchase shares of the Fund. The operating expenses included in the table
and hypothetical example below are based on fees and expenses for the Class A
shares of the Fund for the fiscal year ended December 31, 1993, adjusted to
reflect current fees and expenses. No Class B shares were actually
outstanding during that period, since Class B commenced operations on January
3, 1994. Actual fees and expenses of Class A shares and Class B shares may be
greater or less than those indicated.
Class A Class B
Shares** Shares**
Shareholder Transaction Expenses
Maximum sales charge imposed on purchases (as a
percentage of offering price) 5.00% None
Maximum sales charge imposed on reinvested dividends None None
Maximum deferred sales charge None* 5.00%
Redemption fee+ None None
Exchange fee None None
Annual Fund Operating Expenses
(as a percentage of average net assets)
Management fee 0.80% 0.80%
12b-1 fee*** 0.30% 1.00%
Other expenses 0.54% 0.56%
Total Fund operating expenses 1.64% 2.36%
*No sales charge is payable at the time of purchase on investments in Class
A shares of $1 million or more, but for these investments a contingent
deferred sales charge may be imposed, as described below under the caption
"Share Price," in the event of certain redemption transactions within one
year of purchase.
**The information set forth in the foregoing table relates only to the Class
A shares and Class B shares. The Fund has been operating since its
organization primarily with only one class of shares (now designated as Class
A shares). As of the date of this Prospectus, the Board of Trustees has
authorized the issuance of three classes of shares of the Fund, designated
Class A, Class B and Class C. See "Organization and Management of the Fund."
Class C shares are only offered to certain institutional investors and are
described in a separate prospectus. Some individual investors who are
currently eligible to purchase Class A and Class B shares may also be
participants in plans that are eligible to purchase Class C shares. See
"Institutional Investors." Class C shares are not subject to a sales charge
on purchases, redemptions, or reinvested dividends, nor are they subject to
deferred sales charges or an exchange fee. Class C expenses are identical to
those of Class A shares except that the transfer agent fee may differ and
there is no 12b-1 Fee on Class C shares.
***The amount of the 12b-1 fee used to cover service expenses will be up to
0.25% of the Fund's average net assets, and the remaining portion will be
used to cover distribution expenses. See "The Fund's Expenses."
+Redemption by wire fee (currently $4.00) not included.
<TABLE>
<CAPTION>
Example: 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
You would pay the following expenses for the
indicated period of years on a hypothetical $1,000
investment, assuming a 5% annual return:
Class A shares $66 $ 99 $135 $235
Class B shares
--Assuming complete redemption at end of period $74 $104 $146 $252
--Assuming no redemption $24 $ 74 $126 $252
</TABLE>
(This example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown.)
You would pay the following expenses for the indicated period of years on a
hypothetical $1,000 investment in Class C shares, assuming a 5% annual
return: 1 year, $11; 3 years, $33; 5 years, $57; and 10 years, $127.
The Fund's payment of a distribution fee may result in a long-term
shareholder indirectly paying more than the economic equivalent of the
maximum front-end sales charge permitted under the National Association of
Securities Dealers Rules of Fair Practice.
The management and 12b-1 fees referred to above are more fully explained in
this Prospectus under the caption "The Fund's Expenses" and in the Statement
of Additional Information under the captions "Investment Advisory and Other
Services" and "Distribution Contract."
<PAGE>
THE FUND'S FINANCIAL HIGHLIGHTS
The following table of Financial Highlights has been audited by Ernst &
Young, the Fund's independent auditors, whose unqualified report is included
in the Fund's 1993 Annual Report and is included in the Statement of
Additional Information.
Selected data for each class of shares outstanding throughout each period
indicated are as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
1993 1992 1991 1990 1989 1988 1987 1986 1985 1984
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance
Net Asset Value,
Beginning of Period $17.32 $17.48 $12.93 $15.18 $13.33 $12.34 $14.03 $14.50 $12.13 $13.49
Net Investment Income (0.11) (0.06) 0.04 0.16 0.28 0.23 0.22 0.11 0.18 0.25
Net Realized and
Unrealized Gain
(Loss) on
Investments 2.33 1.10 5.36 (1.47) 3.81 1.16 0.64 1.79 3.11 (0.55)
Total from
Investment
Operations 2.22 1.04 5.40 (1.31) 4.09 1.39 0.86 1.90 3.29 (0.30)
Less Distributions:
Dividends from Net
Investment Income -- -- (0.04) (0.16) (0.29) (0.23) (0.28) (0.17) (0.21) (0.23)
Distributions from
Net Realized Gain
on
Investments Sold (2.14) (1.20) (0.81) (0.78) (1.95) (0.17) (2.27) (2.20) (0.71) (0.83)
Total Distributions (2.14) (1.20) (0.85) (0.94) (2.24) (0.40) (2.55) (2.37) (0.92) (1.06)
Net Asset Value, End
of Period $17.40 $17.32 $17.48 $12.93 $15.18 $13.33 $12.34 $14.03 $14.50 $12.13
Total Investment
Return at Net Asset
Value 13.03% 6.06% 41.68% (8.34)% 30.96% 11.23% 6.03% 13.83% 28.04% (1.95)%
Ratios and
Supplemental Data
Net Assets, End of
Period (000's
omitted) $162,937 $153,057 $145.287 $102.416 $105,014 $101,497 $86,426 $87,468 $72,049 $55,337
Ratio of Expenses to
Average Net Assets 1.56% 1.60% 1.44% 1.46% 0.96% 1.06% 1.00% 1.03% 1.09% 1.13%
Ratio of Net
Investment Income
to Average Net
Assets (0.67%) (0.36%) 0.27% 1.12% 1.73% 1.76% 1.41% 0.77% 1.40% 2.16%
Portfolio Turnover
Rate 68% 71% 82% 102% 61% 47% 68% 62% 67% 61%
CLASS C 1993
Per Share Operating
Performance
Net Asset Value,
Beginning of Period $17.05
Net Investment Income (0.02)
Net Realized and
Unrealized Gain on
Investments 2.57
Total from
Investment
Operations 2.55
Less Distributions:
Dividends from Net
Investment Income --
Distributions from
Net Realized Gain
on
Investments Sold (2.14)
Total Distributions (2.14)
Net Asset Value, End
of Period $17.46
Total Investment
Return at Net Asset
Value 15.18%(a)
Ratios and
Supplemental Data
Net Assets, End of
Period (000's
omitted) $1,285
Ratio of Expenses to
Average Net Assets 1.05%*
Ratio of Net
Investment Income
to Average Net
Assets 0.17%*
Portfolio Turnover
Rate 68%
<FN>
* On an annualized basis.
** Initial price to commence operations.
(a) Not annualized
(b) For the Period May 7, 1993 (Commencement of Operations) to December 31,
1993
</FN>
</TABLE>
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
The Fund's seeks long-term capital appreciation.
The investment objective of the Fund is to achieve long-term appreciation of
capital. The Fund will diversify its investments among a number of industry
groups without concentration in any particular industry. There can be no
assurance that the Fund will realize its objective. The Fund believes its
shares are suitable for investment by persons who are in search of
above-average long-term reward and can invest without concern for current
income.
The Fund invests principally in common stocks (and in securities convertible
into or with rights to purchase common stocks) of companies which the Fund's
management believes offer outstanding growth potential over both the
intermediate and long term. John Hancock Advisers, Inc. (the "Adviser") will
pursue a strategy of investing in common stocks of those companies whose five
year average operating earnings and revenue growth are at least two times
that of the economy, as measured by the Gross Domestic Product. Companies
selected will generally have positive operating earnings growth for five
consecutive years, although companies without a five-year record of positive
earnings growth may also be selected if, in the opinion of the Adviser, they
have significant growth potential. The Fund may invest up to 15% of its net
assets in securities having a limited or restricted market. The Adviser
expects that the average market capitalization of the portfolio will be over
three billion dollars.
The Fund may employ certain investment strategies to
help achieve its investment objective.
Illiquid Securities. The Fund may purchase restricted securities including
those eligible for resale to "qualified institutional buyers" pursuant to
Rule 144A under the Securities Act of 1933 (the "Securities Act"), subject to
a nonfundamental restriction limiting all the Fund's illiquid securities to
not more than 15% of its net assets. The Trustees will monitor the Fund's
investments in these securities, focusing on certain factors, including
valuation, liquidity and availability of information. This investment
practice could have the effect of reducing the level of liquidity in the
Fund, to the extent that qualified institutional buyers may lose interest in
purchasing these restricted securities for a time.
Repurchase Agreements. The Fund may enter into repurchase agreements. In a
repurchase agreement, the Fund buys a security subject to the right and
obligation to sell it back at a higher price. These transactions must be
fully collateralized at all times, but involve some credit risk to the Fund
if the other party defaults on its obligation and the Fund is delayed or
prevented from liquidating the collateral.
Foreign Issuers. The Fund may invest in the securities of foreign issuers in
the form of American Depositary Receipts (ADRs). ADRs (sponsored or
unsponsored) are receipts typically issued by an American bank or trust
company which evidence ownership of underlying securities issued by a foreign
corporation. Most ADRs are publicly traded on a U.S. stock exchange. The Fund
currently does not intend to invest more than 15% of its total assets in
ADRs. Issuers of the shares underlying unsponsored ADRs are not contractually
obligated to disclose material information in the United States and,
therefore, there may not be a correlation between this information and the
market value of an unsponsored ADR. Investments in foreign securities may
involve risks not present in domestic investments. Foreign companies may not
be subject to accounting standards or government supervision comparable to
U.S. com
<PAGE>
panies, and there is often less publicly available information about their
operations. They can also be affected by political or financial instability
abroad.
When management believes that current market or economic conditions warrant,
the Fund temporarily may retain cash or invest in preferred stock,
nonconvertible bonds or other fixed-income securities. Fixed income
securities in the Fund's portfolio will generally be rated at least BBB by
Standard & Poor's Corporation ("S&P") or Baa by Moody's Investor's Service,
Inc. ("Moody's"), or if unrated, determined by the Adviser to be of
comparable quality. The Fund may, however, invest up to 5% of its net assets
in lower rated securities, commonly known as "junk bonds."
The Fund follows certain policies, which may help reduce investment risk.
The Fund has adopted certain investment restrictions which are detailed in
the Statement of Additional Information, where they are classified as
fundamental or nonfundamental. The Fund's investment objective and those
investment restrictions designated as fundamental may not be changed without
shareholder approval. All other investment policies and restrictions,
however, are nonfundamental and can be changed by a vote of the Trustees
without shareholder approval. Portfolio turnover rates of the Fund for recent
years are shown in the section "The Fund's Financial Highlights."
Brokers are chosen based on best price and execution.
When choosing brokerage firms to carry out the Fund's transactions, the
primary consideration is execution at the most favorable prices, taking into
account the broker's professional ability and quality of service.
Consideration may also be given to the broker's sales of Fund shares.
Pursuant to procedures determined by the Trustees the Adviser may place
securities transactions with brokers affiliated with the Adviser. These
brokers include Tucker Anthony Incorporated and Sutro & Company, Inc. They
are indirectly owned by John Hancock Mutual Life Insurance Company, which in
turn indirectly owns the Adviser.
ORGANIZATION AND MANAGEMENT OF THE FUND
The Trustees elect officers and retain the investment adviser who is
responsible for the day-to-day operations of the Fund, subject to the
Trustees' policies and supervision.
The Fund is a separate diversified portfolio of the Trust, an open-end
management investment company organized as a Delaware corporation in 1968 and
reorganized as a Massachusetts business trust in 1984. The Fund has an
unlimited number of authorized shares of beneficial interest. The Trust's
Declaration of Trust permits the Trustees to create and classify shares of
beneficial interest into separate series of the Trust without shareholder
approval. As of the date of this Prospectus, the Trustees have authorized the
Fund and one other series. Although additional series may be added in the
future, the Trustees have no current intention of creating additional series
of the Trust. The Trust's Declaration of Trust also permits the Trustees to
classify and reclassify any series or portfolio of shares of the Fund into
one or more classes. Accordingly, the Trustees have authorized the issuance
of three classes of the Fund, designated Class A, Class B and Class C. The
shares of each class represent an interest in the same portfolio of
investments of the Fund. Each class has equal rights as to voting,
redemption, dividends and liquidation. However, each class bears different
distribution and transfer agent fees and other expenses. Also, Class A and
Class B shareholders have exclusive voting rights with respect to their
distribution plans.
Shareholders have certain rights to remove Trustees. The Fund is not required
and does not intend to hold annual shareholder meetings, although special
meetings may be held for such purposes as electing or removing Trustees,
changing fundamental
<PAGE>
investment restrictions and policies or approving a management contract. The
Fund, under certain circumstances, will assist in shareholder communications
with other shareholders.
John Hancock Advisers, Inc. advises investment companies having total assets
of approximately $10 billion.
The Adviser was organized in 1968 and is a wholly-owned indirect subsidiary
of the John Hancock Mutual Life Insurance Company, a financial services
company. The Adviser provides the Fund, and other investment companies in the
John Hancock group of funds, with investment research and portfolio
management services. John Hancock Broker Distribution Services, Inc. ("Broker
Services") distributes shares for all of the John Hancock mutual funds
directly and through selected broker-dealers ("Selling Brokers"). Certain
Fund officers are also officers of the Adviser and Broker Services.
Day to day management of the Fund is carried out by Robert G. Freedman,
President and Chief Investment Officer of the Adviser and portfolio manager
of the Fund. He is responsible for the development of the Adviser's
investment policy and directs all of the Adviser's domestic and international
investment activities, including management of the Adviser's staff of
portfolio managers. Mr. Freedman joined the Adviser in 1984 as vice president
and portfolio manager after spending fourteen years with the Bank of Boston
as an institutional portfolio manager.
ALTERNATIVE PURCHASE ARRANGEMENTS
You can purchase shares of the Fund at a price equal to their net asset value
per share, plus a sales charge. At your election, this charge may be imposed
either at the time of the purchase (See "Initial Sales Charge
Alternative--Class A Shares") or on a contingent deferred basis (See
"Contingent Deferred Sales Charge Alternative--Class B Shares"). If you do
not specify on your account application which class of shares you are
purchasing, it will be assumed that you are investing in Class A. shares.
Investments in Class A shares are subject to an
initial sales charge.
Class A Shares. If you elect to purchase Class A shares, you will incur an
initial sales charge unless your purchase is $1 million or more. If you
purchase $1 million or more of Class A shares, you will not be subject to an
initial sales charge, but you will incur a sales charge if you redeem your
shares within one year of purchase. Class A shares are subject to ongoing
distribution and service fees at a combined annual rate of up to 0.30% of the
Fund's average daily net assets attributable to the Class A shares. Certain
purchases of Class A shares qualify for reduced initial sales charges. See
"Share Price--Qualifying for a Reduced Sales Charge."
Investments in Class B shares are subject to a contingent deferred sales
charge.
Class B Shares. You will not incur a sales charge when you purchase Class B
shares, but the shares are subject to a sales charge if you redeem them
within six years of purchase (the "contingent deferred sales charge" or the
"CDSC"). Class B shares are subject to ongoing distribution and service fees
at a combined annual rate of up to 1.00% of the Fund's average daily net
assets attributable to the Class B shares. Investing in Class B shares
permits all of your dollars to work from the time your investment is made,
but the higher ongoing distribution fee will cause these shares to have a
higher expense ratio than that of Class A shares. To the extent that any
dividends are paid by the Fund, these higher expenses will result in lower
dividends than those paid on Class A shares.
<PAGE>
FACTORS TO CONSIDER IN CHOOSING AN ALTERNATIVE
You should consider which class of shares will be a more beneficial
investment for you.
The alternative purchase arrangement allows you to choose the most beneficial
way to buy shares, given the amount of purchase, the length of time that you
expect to hold the shares and other circumstances. You should consider
whether, during the anticipated life of your Fund investment the accumulated
CDSC and fees on Class B shares would be less than the initial sales charge
and accumulated fees on Class A shares purchased at the same time, and to
what extent this differential would be offset by the Class A shares' lower
expenses. To help you make this determination, the table under the caption
"Expense Information" on page 2 of this Prospectus shows examples of the
charges applicable to each class of shares. Class A shares will normally be
more beneficial if you qualify for a reduced sales charge. See "Share Price--
Qualifying for a Reduced Sales Charge".
Class A shares are subject to lower distribution and service fees and,
accordingly, pay correspondingly higher dividends per share, to the extent
that any dividends are paid. However, because initial sales charges are
deducted at the time of purchase, you would not have all of your funds
invested initially and, therefore, would initially own fewer shares. If you
do not qualify for reduced initial sales charges and expect to maintain your
investment for an extended period of time you might consider purchasing Class
A shares because the accumulated distribution and service charges on Class B
shares may exceed the initial sales charge and accumulated distribution and
service charges on Class A shares during the life of your investment.
Alternatively, you might determine that it would be more advantageous to
purchase Class B shares in order to have all of your funds invested
initially, although remaining subject to higher distribution fees and, for a
six-year period, a CDSC.
In the case of Class A shares, the distribution expenses that Broker Services
incurs in connection with the sale of shares will be paid from the proceeds
of the initial sales charge and the ongoing distribution and service fees. In
the case of Class B shares, the expenses will be paid from the proceeds of
the ongoing distribution and service fees, as well as the CDSC incurred upon
redemption within six years of purchase. The purpose and function of the
Class B shares' CDSC and ongoing distribution and service fees are the same
as those of the Class A shares' initial sales charge and ongoing distribution
and service fees. Sales personnel distributing the Fund's shares may receive
different compensation for selling each class of shares.
Dividends, if any, on Class A, Class B and Class C shares will be calculated
in the same manner, at the same time, and on the same day and will be in the
same amount. However, each class will bear only its own distribution and
service fees, shareholder meeting expenses and any incremental transfer
agency costs. See "Dividends and Taxes."
THE FUND'S EXPENSES
For managing its investment and business affairs, the Fund pays a fee,
effective January 1, 1994, to the Adviser which is based on a stated
percentage of the Fund's average daily net asset value, as follows:
<PAGE>
Net Asset Value Annual Rate
First $250,000 0.85%
Next $250,000,000 0.75%
Amount over $500,000,000 0.70%
The investment management fee is higher than the fees paid to most mutual
funds but comparable to fees paid by those funds with investment objectives
similar to that of the Fund.
From time to time, the Adviser may reduce its fee or make other arrangements
to limit the Fund's expenses to not more than a specified percentage of
average daily net assets. The Adviser retains the right to re-impose a fee
and recover any other payments to the extent that, at the end of any fiscal
year, the Fund's annual expenses fall below the limit.
The Fund pays distribution and service fees for marketing and sales-related
shareholder servicing.
The Class A and Class B shareholders have adopted distribution plans (each a
"Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940.
Under these Plans, the Fund will pay distribution and service fees at an
aggregate annual rate of 0.30% of the Class A shares' average daily net
assets and an aggregate annual rate of 1.00% of the Class B shares' average
daily net assets. In each case, up to 0.25% is for service expenses and the
remaining amount is for distribution expenses. The distribution fees will be
used to reimburse Broker Services for its distribution expenses including but
not limited to: (i) initial and ongoing sales compensation to Selling Brokers
and others (including affiliates of Broker Services) engaged in the sale of
Fund shares; (ii) marketing, promotional and overhead expenses incurred in
connection with the distribution of Fund shares; and (iii) with respect to
Class B shares only, interest expenses on unreimbursed distribution expenses.
The service fees will be used to compensate Selling Brokers for providing
personal and account maintenance services to shareholders. In the event
Broker Services is not fully reimbursed for payments made or expenses
incurred by it under the Class A Plan, these expenses will not be carried
beyond twelve months from the date they were incurred. These unreimbursed
expenses under the Class B Plan will be carried forward together with
interest on the balance of these unreimbursed expenses.
The Fund's total expenses for Class A shares for the year ended December 31,
1993 were 1.56% of average daily net asset value.
DIVIDENDS AND TAXES
Dividends. Dividends from the Fund's net investment income and capital gains
are generally declared and paid annually. Dividends are reinvested in
additional shares of your class unless you elect the option to receive them
in cash. If you elect the cash option and the U.S. Postal Service cannot
deliver your checks, your election will be converted to the reinvestment
option. Because of the higher expenses associated with Class B shares, any
dividend on Class B shares will be lower than that on Class A shares. See
"Share Price."
<PAGE>
Taxation. Dividends from the Fund's net investment income and net short-term
capital gains are taxable to you as ordinary income. Dividends from the
Fund's net long-term capital gains are taxable as long-term capital gains.
These dividends are taxable whether you take them in cash or reinvest in
additional shares. Certain dividends may be paid in January of a given year
but they may be taxable as if you received them the previous December. The
Fund will send you a statement by January 31 showing the tax status of the
dividends you received for the prior year.
The Fund has qualified and intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1984,
as amended (the "Code"). As a regulated investment company, the Fund will not
be subject to Federal income taxes on any net investment income and net
realized capital gains that are distributed to its shareholders at least
annually. When you redeem (sell) or exchange shares, you may realize a gain
or loss.
On the account application, you must certify that your social security or
other taxpayer identification number is correct and that you are not subject
to backup Federal tax withholding. If you do not provide this information or
are otherwise subject to withholding, the Fund may be required to withhold
31% of your dividends, redemptions and exchanges.
In addition to Federal taxes, you may be subject to state, local or foreign
taxes, depending on your residence. You should consult your tax adviser for
specific advice.
PERFORMANCE
The Fund may advertise its total return.
The Fund's total return shows its overall dollar or percentage change in
value, assuming the reinvestment of all dividends. Cumulative total return
shows the Fund's performance over a period of time. Average annual total
return shows the cumulative return divided over the number of years included
in the period. Because average annual total return tends to smooth out
variations in performance, you should recognize that it is not the same as
actual year-to-year results.
Total return is based on the overall change in value of a hypothetical
investment in the Fund.
Total return calculations for Class A shares generally include the effect of
paying the maximum sales charge (except as shown in "The Funds' Financial
Highlights"). Investments at a lower sales charge would result in higher
performance figures. Total return for the Class B shares reflects the
deduction of the applicable CDSC imposed on a redemption of shares held for
the applicable period. All calculations assume that all dividends are
reinvested at net asset value on the reinvestment dates during the periods.
Total return of Class A, Class B and Class C shares will be calculated
separately, and, because each class is subject to different expenses, the
total return with respect to that class for the same period may differ. The
relative performance of the Class A and Class B shares will be affected by a
variety of factors, including the higher operating expenses attributable to
the Class B shares, whether the Fund's investment performance is better in
the earlier or later portions of the period measured and the level of net
assets of the Classes during the period. The Fund will include the total
return of Class A, Class B and Class C shares in any advertisement or
promotional materials including the Fund's performance data. The value of
Fund shares, when redeemed, may be more or less than their original cost.
<PAGE>
Total return is a historical calculation and is not an indication of future
performance. See "Factors to Consider in Choosing an Alternative." Further
information about the performance of the Fund is contained in the Fund's
Annual Report to Shareholders which may be obtained free of charge by writing
or telephoning John Hancock Fund Services, Inc. at the address or telephone
number listed on the front page of this Prospectus.
HOW TO BUY SHARES
Opening an account
The minimum initial investment in Class A and Class B shares is $1,000 ($250
for group investments and $500 for retirement plans).
Complete the Account Application attached to this Prospectus. Indicate
whether you are purchasing Class A or Class B shares. If you do not specify
which class of shares you are purchasing, Fund Services will assume you are
investing in Class A shares.
By Check
1. Make your check payable to John Hancock Fund Services, Inc. ("Fund
Services").
2. Deliver the completed application and check to your registered
representative or Selling Broker, or mail it directly to Fund Services.
By Wire
1. Obtain an account number by contacting your registered representative or
Selling Broker, or by calling 1-800-225-5291.
2. Instruct your bank to wire funds to:
First Signature Bank & Trust
John Hancock Deposit Account No. 900000260
ABA Routing No. 211475000
For credit to: John Hancock Growth Fund
(Class A or Class B shares)
Your Account Number
Name(s) under which account is registered
3. Deliver the completed application to your registered representative or
Selling Broker, or mail it directly to Fund Services.
Buying additional Class A and Class B shares
Monthly Automatic
Accumulation
Program (MAAP)
1. Complete the "Automatic Investing" and "Bank Information" sections on the
Account Privileges Application, designating a bank account from which funds
may be drawn.
2. The amount you elect to invest will be automatically withdrawn from your
bank or credit union account.
By Telephone
1. Complete the "Invest-By-Phone" and "Bank Information" sections on the
Account Privileges Application, designating a bank account from which funds
may be drawn. Note that in order to invest by phone, your account must be in
a bank or credit union that is a member of the Automated Clearing House
system (ACH).
2. After your authorization form has been processed, you may purchase
additional Class A or Class B shares by calling Fund Services toll-free at
1-800-225-5291.
3. Give the Fund Services representative the name(s) in which your account is
registered, the Fund name, the class of shares you own, your account number
and the amount you wish to invest.
4. Your investment normally will be credited to your account the business day
following your phone request.
<PAGE>
By Check
1. Either complete the detachable stub included on your account statement or
include a note with your investment listing the name of the Fund, the class
of shares you own, your account number and the name(s) in which the account
is registered.
2. Make your check payable to John Hancock Fund Services, Inc.
3. Mail the account information and check to:
John Hancock Fund Services, Inc.
P.O. Box 9115
Boston, MA 02205-9115
or deliver it to your registered representative or Selling Broker.
By Wire
Instruct your bank to wire funds to:
First Signature Bank & Trust
John Hancock Deposit Account No. 900000260
ABA Routing No. 211475000
For credit to: John Hancock Growth Fund
(Class A or Class B shares)
Your Account Number
Name(s) under which account is registered
Other Requirements: All purchases must be made in U.S. dollars. Checks
written on foreign banks will delay purchases until U.S. funds are received,
and a collection charge may be imposed. Shares of the Fund are priced at the
offering price based on the net asset value computed after Broker Services
receives notification of the dollar equivalent from the Fund's custodian
bank. Wire purchases normally take two or more hours to complete and, to be
accepted the same day, must be received by 4:00 p.m., New York time. Your
bank may charge a fee to wire funds. Telephone transactions are recorded to
verify information. Share certificates are not issued unless a request is
made to Fund Services.
Institutional Investors: Certain institutional investors may purchase Class C
shares of the Fund, which have no sales charge or 12b-1 fee. See
"Institutional Investors" for further information.
You will receive statements regarding your account which you should keep to
help with your personal recordkeeping.
You will receive a statement of your account after any transaction that
affects your share balance or registration (statements related to
reinvestment of dividends and automatic investment/withdrawal plans will be
sent to you quarterly). A tax information statement will be mailed to you by
January 31 of each year.
SHARE PRICE
The offering price of shares is their net asset value plus a sales charge, if
applicable, which will vary with the purchase alternative you choose.
The net asset value ("NAV") is the value of one share. The NAV per share is
calculated by dividing the net asset value of each Class by the number of
outstanding shares of that class. The NAV will be different for each class to
the extent that different amounts of undistributed income are accrued on
shares of each class between dividend declarations.
Securities in the Fund's portfolio are generally valued at their last
exchange sale price as provided by a pricing service which utilizes
electronic pricing techniques. If no sale has occurred on the date assets are
valued, or if the security is traded only in the over-the-counter market, it
normally will be valued at its last available bid price. Fixed-income
securities are generally valued by a pricing service which uses electronic
pricing techniques based on general institutional trading. Some securities
are valued at fair value based on procedures approved by the Trustees, and
for certain other securities, the amortized cost method is used if the
Trustees determine in good faith that this approximates fair value, as
described more fully in the Statement of Additional
<PAGE>
Information. The NAV is calculated once daily as of the close of regular
trading on the New York Stock Exchange (generally at 4:00 p.m., New York
time) on each day that the Exchange is open.
Shares of the Fund are sold at the offering price based on the NAV computed
after your investment request is received in good order by Broker Services.
If you buy shares of the Fund through a Selling Broker, the Selling Broker
must receive your investment before the close of regular trading on the New
York Stock Exchange and transmit it to Broker Services before its close of
business to receive that day's offering price.
The Fund offers two classes of shares in this Prospectus: Class A shares,
which are subject to an initial sales charge and Class B shares, which are
subject to a contingent deferred sales charge. If you do not specify a
particular class of shares, it will be assumed that you are purchasing Class
A shares and an initial sales charge will be assessed.
Initial Sales Charge Alternative--Class A Shares. The offering price you pay
for Class A shares of the Fund equals the NAV plus a sales charge as follows:
<TABLE>
<CAPTION>
Sales Sales Combined Reallowance
Charge Charge Reallowance to Selling
as a as a and Service Brokers as a
Percentage Percentage Fee as a Percentage
of the of the Percentage of the
Amount Invested Offering Amount of Offering Offering
(Including Sales Charge) Price Invested Price(+) Price(*)
<S> <C> <C> <C> <C>
Less than $50,000 5.00% 5.26% 4.25% 4.01%
$50,000 to $99,999 4.50% 4.71% 3.75% 3.51%
$100,000 to $249,999 3.50% 3.63% 2.85% 2.61%
$250,000 to $499,999 2.50% 2.56% 2.10% 1.86%
$500,000 to $999,999 2.00% 2.04% 1.60% 1.36%
$1,000,000 and over 0.00%((**)) 0.00%((**)) ((***)) 0.00%((***))
<FN>
(*)Upon notice to Selling Brokers with whom it has sales agreements, Broker
Services may reallow an amount up to the full applicable sales charge. A
Selling Broker to whom substantially the entire sales charge is reallowed or
who receives these incentives may be deemed to be an underwriter under the
Securities Act of 1933.
(**)No sales charge is payable at the time of purchase of Class A shares of
$1 million or more, but a contingent deferred sales charge may be imposed in
the event of certain redemption transactions within one year of purchase.
(***)Broker Services may pay a commission and first year's service fee (as
described in (+) below) to Selling Brokers who initiate and are responsible
for purchases of $1 million or more in aggregate as follows: 1% on sales to
$4,999,999, 0.50% on the next $5 million and 0.25% on $10 million and over.
(+) At the time of sale, Broker Services pays to Selling Brokers the first
year's service fee in advance, in an amount equal to 0.25% of the net assets
invested in the Fund. Thereafter it pays the service fee periodically in
arrears in an amount up to 0.25% of the Fund's average annual net assets.
Selling Brokers receive the fee as compensation for providing personal and
account maintenance services to shareholders.
</FN>
</TABLE>
Sales charges ARE NOT APPLIED to any dividends which are reinvested in
additional shares of the Fund.
In addition to the reallowance allowed to all Selling Brokers, Brokers
Services will pay the following: Round trip airfare to a luxury resort will
be given to each registered
<PAGE>
representative of a Selling Broker who sells certain amount of shares of John
Hancock funds. Broker Services will make these incentive payments out of its
own resources. Other than distribution fees, the Fund does not bear
distribution expenses.
Broker Services will pay certain affiliated Selling Brokers at an annual rate
of up to 0.05% of the daily net assets of the accounts attributable to these
brokers.
Under certain circumstances described below, investors in Class A shares may
be entitled to pay reduced sales charges. See "Qualifying For a Reduced Sales
Charge" below.
Contingent Deferred Sales Charge--Investments of $1 Million or More in Class
A Shares. Purchases of $1 million or more in Class A shares will be made at
net asset value with no initial sales charge, but if the shares are redeemed
within 12 months after the end of the calendar month in which the purchase
was made (the contingent deferred sales charge period), a contingent deferred
sales charge ("CDSC") will be imposed. The rate of the CDSC will depend on
the amount invested as follows:
Amount Invested CDSC Rate
$1 million to $4,999,999 1.00%
Next $5 million to $9,999,999 0.50%
Amounts of $10 million and over 0.25%
The charge will be assessed on an amount equal to the lesser of the current
market value or the original purchase cost of the Class A shares redeemed.
Accordingly, no CDSC will be imposed on increases in account value above the
initial purchase price, including any dividends which have been reinvested in
additional Class A shares.
In determining whether a CDSC applies to a redemption, the calculation will
be determined in a manner that results in the lowest possible rate being
charged. Therefore, it will be assumed that redemption is first made from any
shares in the shareholder's account not subject to the CDSC. The CDSC is
waived on redemption in certain circumstances. See the discussion below under
the caption "Waiver of Contingent Deferred Sales Charges."
You may qualify for a reduced sales charge on your investments in Class A
shares.
Qualifying for a Reduced Sales Charge. If you invest more than $50,000 in
Class A shares of the Fund or a combination of funds in the John Hancock
family of funds (except money market funds), you may qualify for a reduced
sales charge on your investments through a LETTER OF INTENTION or through the
COMBINATION PRIVILEGE. You may also be able to use the ACCUMULATION PRIVILEGE
to take advantage of the value of your previous investments in Class A shares
of John Hancock funds when meeting the breakpoints for a reduced sales
charge.
Class A shares of the Fund may be purchased without paying an initial sales
charge by the following:
* A Trustee/Director or officer of the Trust/Company; a Director or officer
of the Adviser and its affiliates or Selling Brokers; employees or sales
representatives of any of the foregoing; retired officers employees and
Directors of any of the foregoing; a member of the immediate family of any of
the foregoing; or any Fund, pension, profit sharing or other benefit plan for
the individuals described above.
* Any state, county, city or any instrumentality, department, authority or
agency of these entities (an "eligible governmental authority") which is
prohibited by applicable
<PAGE>
investment laws from paying a sales charge or commission when it purchases
shares of any registered investment management company.
* A bank, trust company, credit union, savings institution or other type of
depository institution, its trust departments or common trust funds (an
"eligible depository institution") if it is purchasing $1 million or more for
non-discretionary customers or accounts.
* A broker, dealer or registered investment adviser that has entered into an
agreement with Broker Services providing specifically for the use of Fund
shares in fee-based investment products make available to their clients.
* A former participant in an employee benefit plan with John Hancock Mutual
Funds, when s/he withdraws from his/her plan and transfers any or all of
his/her plan distributions directly to the Fund.
* Class A shares of the Fund may also be purchased without an initial sales
charge in connection with certain liquidation, merger or acquisition
transactions involving other investment companies or personal holding
companies.
Contingent Deferred Sales Charge Alternative--Class B Shares. Class B shares
are offered at net asset value per share without a sales charge, so that your
entire investment will go to work at the time of purchase. However, Class B
shares redeemed within six years of purchase will be subject to a CDSC at the
rates set forth below. This charge will be assessed on an amount equal to the
lesser of the current market value or the original purchase cost of the
shares being redeemed. Accordingly, you will not be assessed a CDSC on
increases in account value above the initial purchase price, including shares
derived from dividend reinvestment or capital gains distributions.
In determining whether a CDSC applies to a redemption, the calculation will
be determined in a manner that results in the lowest possible rate being
charged. It will be assumed that your redemption comes first from shares you
have held beyond the six-year CDSC redemption period or those you acquired
through reinvestment of dividends or distributions, and next from the shares
you have held the longest during the six-year period.
EXAMPLE:
You have purchased 100 shares at $10 per share. The second year after your
purchase, your investment's net asset value per share has increased by $2 to
$12, and you have gained 10 additional shares through dividend reinvestment.
If you redeem 50 shares at this time, your CDSC will be calculated as
follows:
* Proceeds of 50 shares redeemed
at $12 per share $600
* Minus proceeds of 10 shares not subject to
CDSC because they were acquired
through dividend reinvestment (10 X $12) -120
* Minus appreciation on remaining shares,
also not subject to CDSC (40 X $2) - 80
* Amount subject to CDSC $400
Proceeds from the CDSC are paid to Broker Services. Broker Services uses them
in whole or in part to defray its expenses related to providing the Fund with
distribution services in connection with the sale of Class B shares, such as
compensating Selling Brokers for selling these shares. The combination of the
CDSC and the distribution
<PAGE>
and service fees makes it possible for the Fund to sell Class B shares
without deducting a sales charge at the time of the purchase.
The amount of the CDSC, if any, will vary depending on the number of years
from the time you purchase your Class B shares until the time you redeem
them. Solely for purposes of determining the holding period, any payments you
make during the month will be aggregated and deemed to have been made on the
last day of the month.
Contingent Deferred Sales
Year in Which Class B Shares Charge As a Percentage of
Redeemed Following Purchase Dollar Amount Subject to CDSC
First 5.0%
Second 4.0%
Third 3.0%
Fourth 3.0%
Fifth 2.0%
Sixth 1.0%
Seventh and thereafter None
A commission equal to 3.75% of the amount invested and a first year's service
fee equal to 0.25% of the amount invested are paid to Selling Brokers. The
initial service fee is paid in advance at the time of sale for personal and
account maintenance services provided to shareholders during the twelve
months following the sale. Thereafter the service fee is paid in arrears.
Conversion of Class B Shares. Your Class B shares and an appropriate portion
of reinvested dividends on those shares will be converted into Class A shares
automatically no later than the month following eight years after the shares
were purchased, resulting in lower annual distribution fees. If you exchanged
Class B shares into the Fund from another John Hancock fund, the calculation
will be based on the time the shares in the original fund were purchased.
Waiver of Contingent Deferred Sales Charge. The CDSC is waived on redemptions
of Class B shares (and Class A shares subject to the CDSC) in the following
circumstances: (1) redemptions in connection with a tax-exempt retirement
plan distribution which is mandatory under the Code (ie., after age 70-1/2);
(2) redemptions involving certain liquidation, merger or acquisition
transactions involving other investment companies or personal holding
companies; (3) redemptions that are due to death or disability; or (4)
redemptions made pursuant to the Reinvestment Privilege, as described below.
The CDSC is waived on redemptions of shares following distributions to
participants or beneficiaries of plans qualified under Section 401(a) of the
Code or from custodial accounts under Code Section 403(b)(7), deferred
compensation plans under Code Section 457 and other employee benefit plans,
and certain returns of excess contributions made to these plans. In addition,
all of these distributions must be permitted to be made without penalty under
the Code. In addition, certain IRA and retirement plans purchasing shares
before October 1, 1992 will not be subject to a CDSC.
If you are entitled to a waiver of the CDSC, you must notify Fund Services
either directly or through your Selling Broker at the time you make your
redemption. The waiver will be granted subject to confirmation of your
entitlement to the waiver.
<PAGE>
HOW TO REDEEM SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next NAV calculated after your redemption
request is received in good order by Fund Services, less any applicable CDSC.
The Fund may hold payment until reasonably satisfied that investments which
were recently made by check or Invest-by-Phone have been collected (which may
take up to 10 calendar days).
Once your shares are redeemed, the Fund generally sends you payment on the
next business day. When you redeem your shares, you will generally realize a
gain or loss depending on the difference between what you paid for them and
what you receive for them, subject to certain tax rules. Under unusual
circumstances, the Fund may suspend redemptions or postpone payment for up to
seven days or longer, as permitted by Federal securities laws.
To assure acceptance of your redemption request, please follow these
procedures.
By Telephone
All Fund shareholders are automatically eligible for the telephone redemption
privilege. Call 1-800-225-5291, from 8:00 A.M. to 4:00 P.M. (New York time),
Monday through Friday, excluding days on which the New York Stock Exchange is
closed. Fund Services employs the following procedures to confirm that
instructions received by telephone are genuine. Your name, the account
number, taxpayer identification number applicable to the account and other
relevant information may be requested. In addition, telephone instructions
are recorded.
You may redeem up to $100,000 by telephone, but the address on the account
must not have changed for the last 30 days. A check will be mailed to the
exact name(s) and address shown on the account.
If reasonable procedures, such as those described above, are not followed,
the Fund may be liable for any loss due to unauthorized or fraudulent
telephone instructions. In all other cases, neither the Fund nor Fund
Services will be liable for any loss or expense for acting upon telephone
instructions made in accordance with the telephone transactions procedures
mentioned above.
Telephone redemption is not available for IRAs or other tax-qualified
retirement plans or shares of the Fund that are in certificate form.
During periods of extreme economic conditions or market changes, telephone
requests may be difficult to implement due to a large volume of calls. During
these times you should consider placing redemption requests in writing or
using EASI-Line. EASI-Line is a telephone number which is listed on account
statements.
By Wire
If you have a telephone redemption form on file with the Fund, redemption
proceeds of $1,000 or more can be wired on the next business day to your
designated bank account, and a fee (currently $4.00) will be deducted. You
may also use electronic funds transfer to your assigned bank account, and the
funds are usually collectable after two business days. Your bank may or may
not charge for this service. Redemptions of less than $1,000 will be sent by
check or electronic funds transfer.
This feature may be elected by completing the "Telephone Redemption" section
on the Account Privileges Application attached to this Prospectus.
In Writing
Send a stock power or letter of instruction specifying the name of the Fund,
the dollar amount or the number of shares to be redeemed, your name, class of
shares, your account number and the additional requirements listed below that
apply to your particular account.
<PAGE>
Who may guarantee your signature
Additional information about redemptions
Type of Registration Requirements
Individual, Joint Tenants, A letter of instruction signed (with
Sole Proprietorship, titles where applicable) by all persons
Custodial (Uniform Gifts or authorized to sign for the account,
Transfer to Minors Act), exactly as it is registered with the
General Partners. signature(s) guaranteed.
Corporation, Association A letter of instruction and a corporate
resolution, signed by person(s)
authorized to act on the account, with
the signature(s) guaranteed.
Trusts A letter of instruction signed by the
Trustee(s) with the signature(s)
guaranteed. (If the Trustee's name is not
registered on your account, also provide
a copy of the trust document, certified
within the last 60 days.)
If you do not fall into any of these registration categories, please call
1-800-225-5291 for further instructions.
A signature guarantee is a widely accepted way to protect you and the Fund by
verifying the signature on your request. It may not be provided by a notary
public. If the net asset value of the shares redeemed is $100,000 or less,
Broker Services may guarantee the signature. The following institutions may
provide you with a signature guarantee, provided that the institution meets
credit standards established by Fund Services: (i) a bank; (ii) a securities
broker or dealer, including a government or municipal securities broker or
dealer, that is a member of a clearing corporation or meets certain net
capital requirements; (iii) a credit union having authority to issue
signature guarantees; (iv) a savings and loan association, a building and
loan association, a cooperative bank, a federal savings bank or association;
or (v) a national securities exchange, a registered securities exchange or a
clearing agency.
Through Your Broker
Your broker may be able to initiate the redemption. Contact him or her for
instructions.
If you have certificates for your shares, you must submit them with your
stock power or a letter of instruction. Unless you specify to the contrary,
any outstanding Class A shares will be redeemed before Class B shares. You
may not redeem certificated shares by telephone.
Due to the proportionately high cost of maintaining smaller accounts, the
Fund reserves the right to redeem at net asset value all shares in an account
which holds fewer than 50 shares (except accounts under retirement plans) and
to mail the proceeds to the shareholder, or the transfer agent may impose an
annual fee of $10. No account will be involuntarily redeemed or additional
fee imposed, if the value of the account is in excess of the Fund's minimum
initial investment. No CDSC will be imposed on involuntary redemptions of
shares.
Shareholders will be notified before these redemptions are to be made or this
fee is imposed and will have 30 days to purchase additional shares to bring
their account up to the required minimum. Unless the number of shares
acquired by further purchases and dividend reinvestments, if any, exceeds the
number of shares redeemed, repeated redemptions from a smaller account may
eventually trigger this policy.
ADDITIONAL SERVICES AND PROGRAMS
Exchange Privilege
You may exchange shares of the Fund only for shares of the same class in
another John Hancock mutual fund.
If your investment objective changes, or if you wish to achieve further
diversification, John Hancock offers other funds with a wide range of
investment goals. Contact your registered representative or Selling Broker
and request a prospectus for the John Hancock funds that interest you. Read
the prospectus carefully before exchanging your shares. You can exchange
shares of each class of the Fund only for shares of the same class of another
John Hancock mutual fund. For this purpose, John Hancock funds with only one
class of shares will be treated as Class A whether or not they have been so
designated.
Exchanges between funds which are not subject to a CDSC are based on their
respective net asset values. No sales charge or transaction charge is
imposed. Class B shares of
<PAGE>
the Fund which are subject to a CDSC may be exchanged for Class B shares of
another John Hancock fund without incurring the CDSC; however these shares
will be subject to the CDSC schedule of the shares acquired (except that
exchanges into John Hancock Short-Term Strategic Income Fund and John Hancock
Limited Term Government Fund will be subject to the initial fund's CDSC). For
purposes of computing the CDSC payable upon redemption of shares acquired in
an exchange, the holding period of the original shares is added to the
holding period of the shares acquired in an exchange.
You may exchange Class B shares of the Fund into John Hancock Cash Management
Fund at net asset value. Shares so acquired will continue to be subject to a
CDSC upon redemption. The rate of the CDSC will be the rate in effect for the
original fund at the time of the exchange.
If you exchange Class B shares purchased prior to January 1, 1994 (except
John Hancock Short-Term Strategic Income Fund) for Class B shares of any
other John Hancock fund, you will continue to be subject to the CDSC schedule
that was in effect when they were purchased. See "Contingent Deferred Sales
Charge Alternative--Class B shares."
The Fund reserves the right to require you to keep previously exchanged
shares (and reinvested dividends) in the Fund for 90 days before you are
permitted a new exchange. Under exchange agreements with Broker Services,
certain dealers, brokers and investment advisers may exchange their clients'
Fund shares, subject to the terms of those agreements and Broker Services'
right to reject or suspend those exchanges at any time. Because of the
restrictions and procedures under those agreements, the exchanges may be
subject to timing limitations and other restrictions that do not apply to
exchanges requested by shareholders directly, as described above.
Because Fund performance and shareholders can be hurt by excessive trading,
the Fund reserves the right to terminate the exchange privilege for any
person or group that, in Broker Services' judgment, is involved in a pattern
of exchanges that coincide with a "market timing" strategy that may disrupt
the Fund's ability to invest effectively according to its investment
objective and policies, or might otherwise affect the Fund and its
shareholders adversely. The Fund may also temporarily or permanently
terminate the exchange privilege for any person who makes seven or more
exchanges out of the Fund per calendar year. Accounts under common control or
ownership will be aggregated for this purpose.
Although the Fund will attempt to give you prior notice whenever it is
reasonably able to do so, it may impose these restrictions at any time. The
Fund may also terminate or alter the terms of the exchange privilege upon 60
days' notice to shareholders.
An exchange of shares is treated as a redemption of shares of one fund and
the purchase of shares in another fund for Federal income tax purposes. An
exchange may result in a gain or loss.
When you make an exchange, your account registration must be identical in
both the existing and new account. The exchange privilege is available only
in states where the exchange can be made legally.
<PAGE>
By Telephone
1. When you fill out the application for your purchase of Fund shares, you
automatically authorize exchanges by telephone unless you check the box
indicating that you do not wish to have the telephone exchange privilege.
2. Call 1-800-225-5291. Have the account number of your current fund and the
exact name in which it is registered available to give to the telephone
service representative.
In Writing
1. In a letter request an exchange and list the following:
- -- the name and class of the fund whose shares you currently own
- -- your account number
- -- the name(s) in which the account is registered
- -- the name of the fund in which you wish your exchange to be invested
- -- the number of shares, all shares or the dollar amount you wish to exchange
Sign your request exactly as the account is registered.
2. Mail the request and information to:
John Hancock Fund Services, Inc.
P.O. Box 9116
Boston, Massachusetts 02205-9116
Reinvestment Privilege
If you redeem shares of the Fund, you may be able to reinvest the proceeds in
shares of this Fund or another John Hancock fund without paying an addi-
tional sales charge.
1. No sales charge will apply to Class A shares that are reinvested in any of
the other John Hancock funds which are otherwise subject to a sales charge as
long as you reinvest within 120 days of the redemption date. If you paid a
CDSC upon a redemption, you may reinvest at net asset value in the same class
of shares from which you redeemed within 120 days. Your account will be
credited with the amount of the CDSC previously charged, and the reinvested
shares will continue to be subject to a CDSC. The holding period of the
shares acquired through reinvestment, for purposes of computing the CDSC
payable upon a subsequent redemption, will include the holding period of the
redeemed shares.
2. Any portion of your redemption may be reinvested in Fund shares or in
shares of any of the other John Hancock funds, subject to the minimum
investment limit of that fund.
3. To reinvest, you must notify Fund Services in writing. Include the account
number and class from which your shares were originally redeemed.
Systematic Withdrawal Plan
You can pay routine bills from your account or make periodic disbursements
from your retirement account to comply with IRS regulations.
1. You may elect the Systematic Withdrawal Plan at any time by completing the
Account Privileges Application which is attached to this Prospectus. You can
also obtain this application from your registered representative or by
calling 1-800-225-5291.
2. To be eligible, you must have at least $5,000 in your account.
3. Payments from your account can be made monthly, quarterly, semi-annually
or annually or on a selected monthly basis to yourself or any other
designated payee.
4. There is no limit on the number of payees you may authorize, but all
payments must be made at the same time or intervals.
<PAGE>
5. It is not advantageous to maintain a Systematic Withdrawal Plan
concurrently with purchases of additional Class A or Class B shares because
you may be subject to an initial sales charge on your purchases of Class A
shares or a CDSC on your redemptions of Class B shares. In addition, your
redemptions are taxable events.
6. If the U.S. Postal Service cannot deliver your checks, or if deposits to a
bank account are returned for any reason, your redemptions will be
discontinued.
Monthly Automatic Accumulation Program (MAAP)
You can make automatic investments and simplify your investing.
1. You may authorize an investment to be drawn automatically each month from
your bank for investment in Fund shares, under the "Automatic Investing" and
"Bank Information" sections of the Account Privileges Application.
2. You may also authorize automatic investing through payroll deduction by
completing the "Direct Deposit Investing" section of the Account Privileges
Application.
3. You may terminate your Monthly Automatic Accumulation Program at any time.
4. There is no charge to you for this program, and there is no cost to the
Fund.
5. If you have payments being withdrawn from a bank account and we are
notified that the account has been closed, your withdrawals will be
discontinued.
Group Investment Program
Organized groups of at least four persons may establish accounts.
1. An individual account will be established for each participant, but the
initial sales charge for Class A shares will be based on the aggregate dollar
amount of all participants' investments. To determine how to qualify for this
program, contact your registered representative or call 1-800-225-5291.
2. The initial aggregate investment of all participants in the group must be
at least $250.
3. No additional charge is made in connection with this program. There is no
obligation to make investments beyond the minimum, and you may terminate the
program at any time.
Retirement Plans
1. You may use the Fund as a funding medium for various types of qualified
retirement plans, including Individual Retirement Accounts, Keogh Plans (H.R.
10), Pension and Profit Sharing Plans (including 401(k) plans), Tax-Sheltered
Annuity Retirement Plans (403(b) or TSA Plans) and 457 Plans.
2. The initial investment minimum or aggregate minimum for any of the above
plans is $500. However, accounts being established as group IRA, SEP, SARSEP,
TSA, 401(k) and 457 Plans will be accepted without an initial minimum
investment.
INSTITUTIONAL INVESTORS
Class C shares of the Fund are available only to the following types of
institutional investors: (i) Benefits plans not affiliated with the Adviser
which have at least $25,000,000 in plan assets, and either have a separate
trustee vested with investment discretion and certain limitations on the
ability of the plan beneficiaries to access their
<PAGE>
plan investments without incurring adverse tax consequences or allow their
participants to select among one or more investment options, including the
Fund ("participant-directed plans"); (ii) Banks and insurance companies which
are not affiliated with the Adviser purchasing shares for their own account;
(iii) Investment companies not affiliated with the Adviser; (iv) Tax-exempt
retirement plans of the Adviser and its affiliates, including affiliated
brokers; and (v) Unit investment trusts sponsored by Broker Services and
certain other sponsors. Participant-directed plans include, but are not
limited to, 401(k), TSA and 457 plans.
Class C shares are available to eligible institutional investors at net asset
value without the imposition of a sales charge and are not subject to ongoing
distribution fees imposed under a plan adopted pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The minimum initial investment in Class C
shares is $1,000,000, but this requirement may be waived at the discretion of
the Fund's officers. Some individuals who are currently eligible to purchase
Class A or Class B shares may also be participants in plans that are eligible
to purchase Class C shares of the Fund. Plans that qualify to purchase Class
C shares will not be permitted to purchase shares of any other class of the
Fund.
Broker Services may pay a one-time payment of up to 0.15% of the amount
invested in Class C shares to a selling broker for its sales of Class C
shares. A person entitled to receive compensation for selling shares of the
Fund may receive different compensation with respect to sales of Class A,
Class B or Class C shares and any additional future class of shares.
The Reinvestment Privilege, Systematic Withdrawal Plan, Monthly Automatic
Accumulation Program, Group Investment Program and Retirement Plans are not
available for Class C shares.
If you are considering a purchase of Class C shares of the Fund, please call
John Hancock Fund Services, Inc. at 1-800-437-9312 to obtain information
about eligibility, instructions for purchase by check or wire and an
Institutional Account Application.
<PAGE>
(Notes)
<PAGE>
(Notes)
<PAGE>
(Notes)
<PAGE>
John Hancock Growth Fund
Investment Adviser
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Principal Distributor
John Hancock Broker Distribution Services, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, Massachusetts 02110
Transfer Agent
John Hancock Fund Services, Inc.
P.O. Box 9116
Boston, Massachusetts 02205-9116
Independent Auditors
Ernst & Young
200 Clarendon Street
Boston, Massachusetts 02116
HOW TO OBTAIN INFORMATION
ABOUT THE FUND
For: Service Information
Telephone Exchange call 1-800-225-5291
Investment-by-Phone
Telephone Redemption
For: TDD call 1-800-554-6713
JHD-2000P 5-94
JOHN HANCOCK
GROWTH FUND
Class A and Class B Shares
Prospectus
May 1, 1994
A mutual fund seeking to achieve
long-term capital appreciation.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Telephone 1-800-225-5291
[Recycle Symbol] Printed on recycled paper using soybean ink
