Supplement to the John Hancock Growth and Income Funds Prospectus
dated May 1, 1997, as revised December 8, 1997
John Hancock Special Value Fund
On page 12, the prospectus has been changed for John Hancock Special Value Fund
(the "fund") as follows:
Replace the third, fourth and fifth sentences of the "Goal and Strategy" section
with the following:
The fund looks for small-sized companies with total market capitalizations of $1
billion or less, whose earnings power or asset value does not appear to be
reflected in the current stock price, and whose stocks thus have potential for
appreciation. The fund may not invest more than 25% of assets in any one
industry.
Replace the third sentence of the "Risk Factors" section with the following:
Small and medium-sized company stocks, which may comprise a significant portion
of the fund's portfolio, tend to be more volatile than the market as a whole.
March 10, 1998
GINPS 3/98
<PAGE>
Supplement to the John Hancock Special Value Fund
Statement of Additional Information
dated May 1, 1997, as revised December 8, 1997
On page 2, of the Statement of Additional Information for John Hancock Special
Value Fund (the "Fund"), the "Investment Objective and Policies" section has
been changed as follows:
Replace the third paragraph with the following:
Under normal circumstances, the Fund will invest in common stocks and other
equity securities, preferred stocks and warrants, of domestic and foreign
issuers of small-size companies with total market capitalizations of $1 billion
or less. In selecting equity securities for the Fund, the Adviser emphasizes
issuers whose equity securities trade at valuation ratios lower than comparable
issuers or the Standard and Poor's Composite Index. Some of the valuation tools
used include price to earnings, price to cash flow and price to sales ratios and
earnings discount models. The Fund's portfolio will also include securities that
the Adviser considers to have the potential for capital appreciation, due to
potential recognition of earnings power or asset value which is not fully
reflected in the securities' current market value. The Adviser also considers 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.
Replace the first sentence in the fifth paragraph with the following:
The Fund's investments may include a significant portion of smaller, less well
known issuers.
March 10, 1998
