<PAGE> 1
JOHN HANCOCK FUNDS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
INVESTORS
TRUST
FIRST QUARTER REPORT
March 31, 1995
<PAGE> 2
TRUSTEES
Edward J. Boudreau, Jr.
Chairman
Dennis S. Aronowitz*
Richard P. Chapman, Jr.*
William J. Cosgrove*
Gail D. Fosler*
Bayard Henry*
Richard S. Scipione
Edward J. Spellman*
*Members of the Audit Committee
OFFICERS
Edward J. Boudreau, Jr.
Chairman and Chief Executive Officer
Robert G. Freedman
Vice Chairman and
Chief Investment Officer
Andrew F. St. Pierre
President
Anne C. Hodsdon
Executive Vice President
Thomas H. Drohan
Senior Vice President and Secretary
Michael P. DiCarlo
Senior Vice President
James K. Ho
Senior Vice President
James B. Little
Senior Vice President and
Chief Financial Officer
John A. Morin
Vice President
Susan S. Newton
Vice President, Assistant Secretary and
Compliance Officer
James J. Stokowski
Vice President and Treasurer
INVESTMENT ADVISER
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, Massachusetts 02109
CHAIRMAN'S MESSAGE
DEAR FELLOW SHAREHOLDERS:
[A 1 1/4" x 1" photo of Edward J. Boudreau Jr., Chairman and Chief Executive
Officer, flush right, next to second paragraph.]
Now that we are into 1995, returns on New Year's resolutions are coming in.
Dieting and saving money -- Americans' long-time favorites -- are often the most
difficult resolutions to keep. This year, however, Congress may give savers an
additional incentive to stick to their guns.
Both the Republicans and Democrats want to revive Individual Retirement
Accounts (IRAs). In an effort to encourage savings, IRAs were made available to
all working Americans in 1981. Anyone with earned income could contribute up to
$2,000 annually. The contributions were fully tax-deductible, and the earnings
weren't taxed until withdrawal. IRAs became the most successful savings program
in the U.S., drawing in more than $250 billion and 13 million new participants
by 1985.
Sweeping tax reforms in 1986, however, changed all that. As it stands
now, the full deduction only applies to individuals who earn less than $25,000,
married couples who earn less than $40,000 and people without employer-sponsored
retirement plans. The result of this congressional tinkering: the number of IRA
contributors declined dramatically, from 16.2 million in 1985 to 4.2 million in
1992.
Legislators are now taking a closer look at expanding the accessibility
of IRAs once again. Several proposals are on the table: (1) the Republicans'
"Contract with America" includes the American Dream Savings Account, a type of
IRA; (2) President Clinton has proposed expanding eligibility by raising income
limits; and (3) several congressional representatives have introduced
legislation to restore the universal availability of a fully tax-deductible IRA.
We enthusiastically support restoring IRAs to their original luster. Not
only will it provide a tax break to middle-income Americans, but it will go a
long way toward raising the nation's dangerously low personal savings rate,
which is the lowest of any major industrialized country. There's an increasing
awareness that Social Security and pension plans will no longer provide for the
retirement needs of middle-income Americans. Increasing IRA accessibility for
more working individuals and families is one of the most sensible ways to help
Americans take responsibility for their future financial needs. We urge you to
support the expanded IRA by contacting your congressional representative or
senator.
Sincerely,
/s/ Edward J. Boudreau, Jr.
- ----------------------------
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER
2
<PAGE> 3
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
THE STATEMENT OF ASSETS AND LIABILITIES IS THE FUND'S BALANCE SHEET AND SHOWS
THE VALUE OF WHAT THE FUND OWNS, IS DUE AND OWES ON MARCH 31, 1995. YOU'LL ALSO
FIND THE NET ASSET VALUE PER SHARE AS OF THAT DATE.
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments at value - Note C:
Publicly traded bonds and direct placement security
(cost - $149,050,564)................................. $148,481,726
Joint repurchase agreement (cost - $2,917,000).......... 2,917,000
Corporate savings account............................... 525
------------
151,399,251
Receivable for investments sold........................... 525,181
Interest receivable....................................... 3,384,787
Receivable for variation margin - Note A.................. 2,500
------------
Total Assets............................ 155,311,719
-------------------------------------------------------
LIABILITIES:
Payable for investments purchased......................... 1,782,443
Payable to John Hancock Advisers, Inc. and
affiliates - Note B.................................... 107,541
Accounts payable and accrued expenses..................... 71,722
------------
Total Liabilities....................... 1,961,706
-------------------------------------------------------
NET ASSETS:
Capital paid-in........................................... 156,715,251
Accumulated net realized loss on investments and
financial futures contracts............................. (2,798,159)
Net unrealized depreciation of investments and
financial futures contracts............................. (584,776)
Undistributed net investment income....................... 17,697
------------
Net Assets.............................. $153,350,013
=======================================================
NET ASSET VALUE PER SHARE:
(based on 7,499,171 shares of beneficial interest
outstanding - 20 million shares authorized with
no par value)............................................. $ 20.45
=========================================================================
</TABLE>
THE STATEMENT OF OPERATIONS SUMMARIZES THE FUND'S INVESTMENT INCOME EARNED AND
EXPENSES INCURRED IN OPERATING THE FUND. IT ALSO SHOWS NET GAINS (LOSSES) FOR
THE PERIOD STATED.
<TABLE>
STATEMENT OF OPERATIONS
Three months ended March 31, 1995 (Unaudited)
- ---------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest.................................................. $3,471,642
----------
Expenses:
Investment management fee - Note B........................ 238,119
Transfer agent fee........................................ 34,479
Printing.................................................. 20,774
Custodian fee............................................. 13,251
Auditing fee.............................................. 11,269
New York Stock Exchange fee............................... 4,851
Trustees' fees............................................ 3,998
Miscellaneous............................................. 2,940
Legal fees................................................ 908
----------
Total Expenses.......................... 330,589
-----------------------------------------------------
Net Investment Income................... 3,141,053
-----------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FINANCIAL FUTURES CONTRACTS
Net realized loss on investments sold..................... (623,690)
Net realized loss on financial futures contracts.......... (231,174)
Change in net unrealized appreciation/depreciation
of investments.......................................... 5,785,812
Change in net unrealized appreciation/depreciation of
financial futures contracts............................. 81,875
----------
Net Realized and Unrealized
Gain on Investments and
Financial Futures Contracts 5,012,823
-----------------------------------------------------
Net Increase in Net Assets
Resulting from Operations $8,153,876
=====================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 4
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
MARCH 31, 1995 DECEMBER 31,
(UNAUDITED) 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income..................................................................... $ 3,141,053 $ 12,529,603
Net realized loss on investments sold and financial futures contracts..................... (854,864) (1,552,506)
Change in net unrealized appreciation/depreciation of investments and financial
futures contracts....................................................................... 5,867,687 (15,741,319)
------------ -------------
Net Increase (Decrease) in Net Assets Resulting from Operations......................... 8,153,876 (4,764,222)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income ($0.4200 and $1.6825 per share, respectively)........ (3,140,505) (12,512,454)
Distributions from net realized gain on investments sold and financial futures contracts
(none and $0.0326 per share, respectively).............................................. -- (239,420)
------------ ------------
Total Distributions to Shareholders..................................................... (3,140,505) (12,751,874)
------------ ------------
FROM FUND SHARE TRANSACTIONS
(Market value of shares issued to shareholders in reinvestment of distributions).......... 420,486 1,723,660
------------ ------------
NET ASSETS:
Beginning of period....................................................................... 147,916,156 163,708,592
------------ ------------
End of period (including undistributed net investment income of $17,697
and $17,149, respectively).............................................................. $153,350,013 $147,916,156
============ ============
* ANALYSIS OF FUND SHARE TRANSACTIONS:
Shares outstanding beginning of period.................................................... 7,477,780 7,391,349
Shares issued to shareholders in reinvestment of distributions............................ 21,391 86,431
------------ ------------
Shares outstanding end of period.......................................................... 7,499,171 7,477,780
============ ============
</TABLE>
THE STATEMENT OF CHANGES IN NET ASSETS SHOWS HOW THE VALUE OF THE FUND'S NET
ASSETS HAS CHANGED SINCE THE END OF THE PREVIOUS PERIOD. THE DIFFERENCE REFLECTS
EARNINGS LESS EXPENSES, ANY INVESTMENT GAINS AND LOSSES, DISTRIBUTIONS PAID TO
SHAREHOLDERS, AND ANY INCREASE DUE TO REINVESTMENT OF DISTRIBUTIONS IN THE FUND.
THE FOOTNOTE ILLUSTRATES THE NUMBER OF FUND SHARES OUTSTANDING AT THE BEGINNING
OF THE PERIOD, REINVESTED AND OUTSTANDING AT THE END OF THE PERIOD, FOR THE LAST
TWO PERIODS.
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 5
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
FINANCIAL HIGHLIGHTS
Selected data for each share of beneficial interest outstanding throughout the
period indicated, investment returns, key ratios and supplemental data are
listed as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31,
(UNAUDITED)
----------------------
1995 1994
---- ----
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period.......................... $ 19.78 $ 22.15
-------- --------
Net Investment Income......................................... 0.42 0.42
Net Realized and Unrealized Gain (Loss)
on Investments and Financial Futures Contracts.............. 0.67 (1.06)
-------- -------
Total from Investment Operations.......................... 1.09 (0.64)
-------- --------
Less Distributions:
Dividends from Net Investment Income.......................... (0.42) (0.42)
Distributions from Net Realized Gain on Investments Sold
and Financial Futures Contracts............................. -- (0.03)
Temporary Overdistribution.................................... -- --
-------- --------
Total Distributions....................................... (0.42) (0.45)
-------- --------
Net Asset Value, End of Period................................ $ 20.45 $ 21.06
======== ========
Per Share Market Value, End of Period......................... $ 19.75 $ 22.25
Total Investment Return at Market Value....................... 14.42%(a) 1.40(a)
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)..................... $153,350 $156,067
Ratio of Expenses to Average Net Assets....................... 0.88%* 0.84%*
Ratio of Net Investment Income to Average Net Assets.......... 8.38%* 7.71%*
Portfolio Turnover Rate....................................... 20% 28%
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period.......................... $ 22.15 $ 21.62 $ 21.61 $ 20.08 $ 20.87
-------- -------- -------- -------- --------
Net Investment Income......................................... 1.68 1.76 1.85 1.92 1.96
Net Realized and Unrealized Gain (Loss)
on Investments and Financial Futures Contracts.............. (2.34) 1.07 0.03 1.54 (0.77)
-------- -------- -------- -------- --------
Total from Investment Operations.......................... (0.66) 2.83 1.88 3.46 1.19
-------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income.......................... (1.68) (1.76) (1.87) (1.93) (1.98)
Distributions from Net Realized Gain on Investments Sold
and Financial Futures Contracts............................. (0.03) (0.49) -- -- --
Temporary Overdistribution.................................... -- (0.05) -- -- --
-------- -------- -------- -------- --------
Total Distributions....................................... (1.71) (2.30) (1.87) (1.93) (1.98)
-------- -------- -------- -------- --------
Net Asset Value, End of Period................................ $ 19.78 $ 22.15 $ 21.62 $ 21.61 $ 20.08
======== ======== ======== ======== ========
Per Share Market Value, End of Period......................... $ 17.63 $ 22.375 $ 23.50 $ 24.00 $ 19.50
Total Investment Return at Market Value....................... (14.14)% 5.35% 6.54% 33.06% 0.43%
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)..................... $147,916 $163,709 $157,757 $156,026 $143,334
Ratio of Expenses to Average Net Assets....................... 0.88% 0.85% 0.82% 0.74% 0.71%
Ratio of Net Investment Income to Average Net Assets.......... 8.11% 7.78% 8.58% 9.33% 9.70%
Portfolio Turnover Rate....................................... 82% 99% 104% 81% 95%
</TABLE>
* On an annualized basis.
(a) Not annualized.
THE FINANCIAL HIGHLIGHTS SUMMARIZE THE IMPACT OF THE FOLLOWING FACTORS ON A
SINGLE SHARE FOR THE PERIOD INDICATED: THE NET INVESTMENT INCOME, GAINS (LOSSES)
AND DISTRIBUTIONS OF THE FUND. IT SHOWS HOW THE FUND'S NET ASSET VALUE FOR A
SHARE HAS CHANGED SINCE THE END OF THE PREVIOUS PERIOD. IT ALSO SHOWS THE TOTAL
INVESTMENT RETURN FOR EACH PERIOD BASED ON THE MARKET VALUE OF FUND SHARES.
ADDITIONALLY, IMPORTANT RELATIONSHIPS BETWEEN SOME ITEMS PRESENTED IN THE
FINANCIAL STATEMENTS ARE EXPRESSED IN RATIO FORM.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 6
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
SCHEDULE OF INVESTMENTS
March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------
THE SCHEDULE OF INVESTMENTS IS A COMPLETE LIST OF ALL SECURITIES OWNED BY
INVESTORS TRUST ON MARCH 31, 1995. IT'S DIVIDED INTO TWO MAIN CATEGORIES:
PUBLICLY TRADED BONDS AND DIRECT PLACEMENT SECURITY, AND SHORT-TERM INVESTMENTS.
THE SECURITIES ARE FURTHER BROKEN DOWN BY INDUSTRY GROUPS. SHORT-TERM
INVESTMENTS, WHICH REPRESENT THE FUND'S "CASH" POSITION, ARE LISTED LAST.
<TABLE>
<CAPTION>
INTEREST S+P PAR VALUE MARKET
ISSUER, DESCRIPTION RATE RATING** (000'S OMITTED) VALUE
- ------------------- -------- -------- --------------- ------
<S> <C> <C> <C> <C>
PUBLICLY TRADED BONDS AND DIRECT PLACEMENT SECURITY
BANKS (14.38%)
Abbey National First Capital B.V.,
Sub Note 10-15-04................................................. 8.200% AA- $ 750 $ 766,320
African Development Bank,
Sub Note 12-15-03................................................. 9.750 AA 1,000 1,124,230
Bank of Montreal - Chicago Branch,
Sub Note 11-01-00................................................. 9.800 A+ 1,000 1,013,810
Banque Paribas - New York Branch,
Sub Note 03-01-09................................................. 6.875 A- 1,000 869,200
Barclays North American Capital Corp.,
Gtd Cap Note 05-15-21............................................. 9.750 AA- 750 831,270
International Bank for Reconstruction and Development,
30 Yr Bond 10-15-16............................................... 8.625 AAA 3,800 4,049,622
30 Yr Bond 07-15-17............................................... 9.250 AAA 1,000 1,132,100
Landeskreditbank Baden - Wurttemberg,
Sub Note 02-01-23................................................. 7.625 AAA 1,300 1,246,205
Midland American Capital Corp.,
Gtd Note 11-15-03................................................. 12.750 A- 1,650 1,909,792
National Westminster Bank PLC - New York Branch,
Sub Note 05-01-01................................................. 9.450 AA- 1,200 1,294,332
Scotland International Finance No. 2 B.V.,
Sub Gtd Note 01-27-04 (R)......................................... 8.800 A+ 2,000 2,092,880
Sub Gtd Note 11-01-06 (R)......................................... 8.850 A+ 750 783,623
Security Pacific Corp.,
Medium Term Sub Note 05-09-01..................................... 10.360 A- 1,750 1,981,403
Sub Note 11-15-00................................................. 11.500 A- 1,000 1,159,670
Toronto Dominion Bank - New York Branch,
Sub Note 01-15-09................................................. 6.450 AA- 1,000 867,170
Westdeutsche Landesbank Girozentrale - New York Branch,
Sub Note 06-15-05................................................. 6.750 AA+ 1,000 931,430
-----------
22,053,057
-----------
BROADCASTING (4.85%)
Cablevision Systems Corp.,
Sr Sub Deb 04-01-04............................................... 10.750 B 1,000 1,030,000
Century Communications Corp.,
Sr Sub Deb 10-15-03............................................... 11.875 B+ 1,000 1,047,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 7
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
<CAPTION>
INTEREST S+P PAR VALUE MARKET
ISSUER, DESCRIPTION RATE RATING** (000'S OMITTED) VALUE
- ------------------- -------- -------- --------------- ------
<S> <C> <C> <C> <C>
BROADCASTING (CONTINUED)
Continental Cablevision, Inc.,
Sr Sub Deb 06-01-07.............................................. 11.000% BB- $1,000 $ 1,060,000
Jones Intercable, Inc.,
*Sr Note 03-15-02................................................ 9.625 BB 500 495,000
Le Groupe Videotron Ltee,
*Sr Note 02-15-05................................................ 10.625 BB+ 250 253,750
Rogers Cablesystems Ltd.,
*Sr Sec Second Priority Note 03-15-05 (R)........................ 10.000 BB+ 500 501,250
TKR Cable I, Inc.,
Sr Deb 10-30-07.................................................. 10.500 BBB- 2,000 2,140,600
Viacom International,
Sub Deb 07-07-06................................................. 8.000 B+ 1,000 905,000
------------
7,433,100
------------
COMPUTERS (1.43%)
Unisys Corp.,
Credit Sensitive Note 07-01-97................................... 13.500 BB- 2,000 2,185,000
------------
CONTAINERS (0.49%)
Stone Container Corp.,
Sr Note 02-01-01................................................. 9.875 B 775 751,750
------------
COSMETICS & TOILETRIES (0.43%)
Johnson & Johnson,
Deb 11-15-23..................................................... 6.730 AAA 750 653,438
------------
ELECTRONICS (0.17%)
Alliant Techsystems, Inc.,
*Sr Sub Note 03-01-03 (R)........................................ 11.750 B2 250 255,000
------------
FINANCE (4.51%)
Banc One Credit Card Master Trust,
Class A Asset Backed Ctf, Ser 1994-B 12-15-99.................... 7.550 AAA 1,000 1,008,437
CIT Group Holdings, Inc. (The),
Medium Term Sr Sub Cap Note 03-15-01............................. 9.250 A 1,000 1,072,730
DR Structured Finance Corp.,
Sec Pass thru Ctf Ser 1993K-1 08-15-18........................... 7.430 A 1,000 817,050
Great Western Financial Corp.,
Note 02-01-02.................................................... 8.600 BBB+ 1,250 1,279,013
Merrill Lynch Mortgage Investors, Inc.,
Sr/Sub Pass thru Ctf Ser 1992B, Class B (Sub) 04-15-12........... 8.500 AA 527 523,925
Standard Credit Card Master Trust I,
*Class A Credit Card Part Ctf Ser 1995-2 01-07-00................. 8.625 AAA 1,250 1,260,156
Class A Credit Card Part Ctf Ser 1994-2 04-07-08................. 7.250 AAA 1,000 959,060
------------
6,920,371
------------
FOODS (0.43%)
Beatrice Foods, Inc.,
Sr Sub Note Ser B 12-01-01....................................... 12.000 B 250 240,000
Flagstar Corp.,
Sr Sub Deb 11-01-04............................................... 11.250 CCC+ 500 420,000
------------
660,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 8
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
<CAPTION>
INTEREST S+P PAR VALUE MARKET
ISSUER, DESCRIPTION RATE RATING** (000'S OMITTED) VALUE
- ------------------- -------- -------- --------------- ------
<S> <C> <C> <C> <C>
GLASS PRODUCTS (0.52%)
Owens-Illinois, Inc.,
Sr Deb 12-01-03.................................................. 11.000% BB $ 750 $ 800,625
------------
GOLD MINING & PROCESSING (1.24%)
Magma Copper Co.,
Sr Sub Note 12-15-01............................................. 12.000 BB+ 1,755 1,895,400
------------
GOVERNMENTAL - FOREIGN (1.90%)
Nova Scotia, Province of,
Deb 04-01-22..................................................... 8.750 A- 1,000 1,019,100
Ontario, Province of,
Bond 06-04-02.................................................... 7.750 AA- 500 500,180
Deb 05-01-11..................................................... 15.125 AA- 325 368,761
Deb 08-31-12..................................................... 15.250 AA- 350 426,066
Quebec, Province of,
Deb 10-01-13..................................................... 13.000 A+ 500 599,035
------------
2,913,142
------------
GOVERNMENTAL - U.S. (18.54%)
United States Treasury,
Bond 08-15-03.................................................... 11.125 AAA 2,185 2,710,077
Bond 08-15-05.................................................... 10.750 AAA 4,560 5,679,344
Bond 08-15-17.................................................... 8.875 AAA 2,310 2,625,823
Bond 05-15-18.................................................... 9.125 AAA 3,250 3,788,265
Bond 02-15-23.................................................... 7.125 AAA 1,700 1,620,049
*Note 08-15-95.................................................... 8.500 AAA 2,000 2,017,180
Note 11-15-96.................................................... 7.250 AAA 2,750 2,771,917
Note 04-15-98.................................................... 7.875 AAA 1,000 1,025,160
Note 05-15-98.................................................... 9.000 AAA 1,250 1,320,900
Note 11-30-99.................................................... 7.750 AAA 2,900 2,974,298
Note 05-15-01.................................................... 8.000 AAA 1,815 1,891,847
------------
28,424,860
------------
GOVERNMENTAL - U.S. AGENCIES (15.87%)
Federal National Mortgage Association,
15 Yr SF Pass thru Ctf 01-25-05.................................. 8.000 AAA 1,000 998,125
15 Yr SF Pass thru Ctf 02-01-08.................................. 7.500 AAA 793 785,189
Financing Corp.,
Bond Ser B 04-06-18.............................................. 9.800 AAA 1,900 2,279,696
Government National Mortgage Association,
*30 Yr SF Pass thru Ctf 10-15-23 to 05-15-24...................... 7.000 AAA 2,856 2,671,391
30 Yr SF Pass thru Ctf 02-15-24.................................. 7.500 AAA 1,764 1,702,214
*30 Yr SF Pass thru Ctf 12-15-22 to 11-15-24...................... 8.000 AAA 2,936 2,908,276
30 Yr SF Pass thru Ctf 01-15-23 to 10-15-24...................... 8.500 AAA 6,433 6,521,443
30 Yr SF Pass thru Ctf 04-15-21.................................. 9.000 AAA 916 945,327
*30 Yr SF Pass thru Ctf 11-15-19 to 02-28-25...................... 9.500 AAA 2,171 2,277,297
30 Yr SF Pass thru Ctf 11-15-20.................................. 10.000 AAA 639 684,749
Tennessee Valley Authority,
Power Bonds 1989 Ser G 11-15-29.................................. 8.625 AAA 2,500 2,565,500
------------
24,339,207
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 9
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
<CAPTION>
INTEREST S+P PAR VALUE MARKET
ISSUER, DESCRIPTION RATE RATING** (000'S OMITTED) VALUE
- ------------------- -------- -------- --------------- ------
<S> <C> <C> <C> <C>
INSURANCE (1.89%)
Massachusetts Mutual Life Insurance Co.,
Surplus Note 11-15-23 (R).................................... 7.625% AA- $1,250 $ 1,104,512
Metropolitan Life Insurance Co.,
Surplus Note 11-01-03 (R).................................... 6.300 AA 1,000 872,570
New York Life Insurance Co.,
Surplus Note 12-15-23 (R).................................... 7.500 AA 1,050 922,793
------------
2,899,875
------------
OIL & GAS (3.55%)
Ashland Oil, Inc.,
SF Deb 10-15-17.............................................. 11.125 BBB 1,000 1,117,560
Coastal Corp. (The),
Sr Deb 06-15-06.............................................. 11.750 BB+ 1,000 1,075,000
Maxus Energy Corp.,
Deb 05-01-13................................................. 11.250 BB- 125 106,250
Norsk Hydro, a.s.,
Deb 06-15-23................................................. 7.750 A- 1,000 935,690
Oryx Energy Co.,
Note 09-15-98................................................ 9.750 BB 1,000 1,005,000
TransTexas Gas Corp.,
Sr Sec Note 09-01-00......................................... 10.500 BB- 1,200 1,207,500
------------
5,447,000
------------
PAPER (0.30%)
Georgia-Pacific Corp.,
Deb 02-15-18................................................. 9.500 BBB- 450 464,337
------------
PUBLISHING (2.62%)
News America Holdings Inc.,
Sr Note 10-15-99............................................. 9.125 BBB- 1,000 1,042,770
Sr Note 12-15-01............................................. 12.000 BBB- 750 842,340
Sr Note 02-15-05............................................. 8.500 BBB- 700 706,503
Time Warner Inc.,
Deb 01-15-13................................................. 9.125 BBB- 1,500 1,425,450
------------
4,017,063
------------
RETAIL (3.01%)
Kroger Co. (The),
Lease Ctf 02-01-09........................................... 12.950 BB 1,910 2,148,750
May Department Stores Co. (The),
Deb 06-15-18................................................. 10.750 A 126 134,072
Pathmark Stores, Inc.,
Sub Note 06-15-02............................................ 11.625 B 1,000 1,010,000
Safeway Stores, Inc.,
Lease Ctf 01-15-09........................................... 13.500 BB+ 500 545,000
S.D. Warren Co.,
Sr Sub Note 12-15-04 (R)..................................... 12.000 B+ 250 263,750
Thrifty Payless Inc.,
*Sr Note 04-15-03............................................. 11.750 B 500 520,000
------------
4,621,572
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 10
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
<CAPTION>
INTEREST S+P PAR VALUE MARKET
ISSUER, DESCRIPTION RATE RATING** (000'S OMITTED) VALUE
- ------------------- -------- -------- -------------- ------
<S> <C> <C> <C> <C>
STEEL (1.14%)
Ucar Global Enterprises Inc.
*Sr Sub Note 01-15-05 (R).................................... 12.000% B $ 500 $ 525,000
Weirton Steel Corp.,
*Sr Note 03-01-98............................................ 11.500 B 250 250,625
Sr Note 10-15-99............................................ 10.875 B 1,000 975,000
------------
1,750,625
------------
TOBACCO (0.64%)
RJR Nabisco Capital Corp.,
Note 04-15-04................................................ 8.750 BBB- 1,000 988,810
------------
TRANSPORTATION (7.07%)
American Airlines, Inc.,
1991-A Pass thru Trust 01-02-07.............................. 9.710 BBB- 793 822,103
Delta Air Lines, Inc.,
Equip Tr Ctf Ser A 06-01-08.................................. 10.000 BB+ 2,000 2,114,060
NWA Inc.,
Note 08-01-96................................................ 8.625 B- 2,285 2,262,150
Rail Car Trust No. 1992-1
Trust Note 06-01-04.......................................... 7.750 AAA 1,785 1,800,699
Scandinavian Airlines System,
Bond 07-20-99................................................ 9.125 A3 1,000 1,037,520
United Air Lines, Inc.,
Deb Ser B 05-01-14........................................... 11.210 BB 1,000 1,094,230
USAir 1990-A Pass Through Trusts,
Pass thru Ctf Ser 1990-A1 03-19-05........................... 11.200 B+ 1,851 1,707,564
------------
10,838,326
------------
UTILITIES (11.85%)
ALLTEL Corp.,
Deb 04-01-09................................................. 10.375 A+ 500 530,105
BVPS II Funding Corp.,
*Collateralized Lease Bond 06-01-17.......................... 8.890 BB+ 1,000 869,980
CTC Mansfield Funding Corp.,
Sec Lease Oblig 09-30-16..................................... 11.125 B+ 2,575 2,549,224
E.I.P. Refunding Corp.,
Sec Fac Bond 10-01-12........................................ 10.250 B+ 750 762,240
First PV Funding Corp.,
Lease Oblig Ser 1986 A 01-15-14.............................. 10.300 B 750 735,000
Fitchburg Holding Corp.,
Sec Note 01-31-03 (r)........................................ 15.750 BBB 2,390 2,614,144
GTE Corp.,
Deb 11-15-17................................................. 10.300 BBB+ 500 563,535
Deb 11-01-20................................................. 10.250 BBB+ 1,500 1,676,850
Hydro-Quebec (Gtd by Province of Quebec),
Deb Ser HS 02-01-21.......................................... 9.400 A+ 2,000 2,165,640
Iberdrola International B.V.,
Gtd Note 10-01-02 (R)........................................ 7.500 AA- 1,000 974,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 11
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
<CAPTION>
INTEREST S+P PAR VALUE MARKET
ISSUER, DESCRIPTION RATE** RATING** (000'S OMITTED) VALUE
- ------------------- -------- -------- -------------- ------
<S> <C> <C> <C> <C>
UTILITIES (CONTINUED)
Long Island Lighting Co.,
*Deb 07-15-19....................................... 8.900 BB+ $ 500 $ 420,605
*Deb 03-15-03....................................... 7.050 BB+ 500 425,285
Louisiana Power & Light, Co.
*Sec Lease Oblig Ser B 01-02-17..................... 10.670 BBB- 1,350 1,410,750
Midland Funding Corp. I,
Sr Sec Lease Oblig Ser C 07-23-02................... 10.330 BB- 1,285 1,278,412
System Energy Resources, Inc.,
Sec Lease Oblig 01-15-14............................ 8.200 BBB- 500 449,275
Tenaga Nasional Berhad,
Note 06-15-04 (R)................................... 7.875 A+ 750 743,723
------------
18,169,168
------------
TOTAL PUBLICLY TRADED BONDS AND DIRECT PLACEMENT SECURITY
(Cost $149,050,564) (96.83)% 148,481,726
------- ------------
SHORT-TERM INVESTMENTS
JOINT REPURCHASE AGREEMENT (1.90)%
Investment in a joint repurchase agreement
transaction with U.B.S. Securities Inc.,
Dated 03-31-95, due 04-03-95 (secured by
U.S. Treasury Bond, 6.250%, due 08-15-23
and U.S. Treasury Notes, 5.250% thru 9.125%,
due 07-31-98 thru 05-15-01) - Note A................ 6.125 2,917 2,917,000
------------
CORPORATE SAVINGS ACCOUNT (0.00)%
Investors Bank & Trust Company
Daily interest savings account
Current rate 3.00%.................................. 525
------------
SHORT-TERM INVESTMENTS (1.90)% 2,917,525
------------
TOTAL INVESTMENTS (98.73)% $151,399,251
======= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 12
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
NOTES TO THE SCHEDULE OF INVESTMENTS
(r) The security listed below is a direct placement security and is
restricted as to resale. The Fund has limited rights to registration under
the Securities Act of 1933 with respect to restricted securities (not
including Rule 144A securities). In certain circumstances the Fund may bear
a portion of the cost of such registrations; otherwise, such costs would be
borne by the issuer. See Note A of the Notes To Financial Statements for
valuation policy. Additional information on this restricted security is as
follows:
<TABLE>
<CAPTION>
MARKET
VALUE AS A
PERCENTAGE MARKET VALUE
ACQUISITION ACQUISITION OF FUND'S AS OF
DATE COST NET ASSETS MARCH 31, 1995
---- ---- ---------- --------------
<S> <C> <C> <C> <C>
Fitchburg Holdings Corp.,
Sec. Note, 15.75%, 01-31-03.......... 02-10-81 $2,416,685 1.70% $2,614,144
</TABLE>
(R) These securities are exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold, normally to qualified
institutional buyers, in transactions exempt from registration. Rule 144A
securities amounted to $9,039,501 as of March 31, 1995. See Note A of the
Notes To Financial Statements for valuation policy.
** Securities, other than short term investments, newly added to the
portfolio during the three months ended March 31, 1995.
** Credit ratings are rated by Moody's Investor Services or John Hancock
Advisers, Inc. where Standard and Poors ratings are not available.
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
NOTE A -- ACCOUNTING POLICIES (UNAUDITED)
John Hancock Investors Trust (the "Fund") is a closed-end investment management
company registered under the Investment Company Act of 1940. Significant
accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Securities in the Fund's portfolio are valued on the
basis of market quotations, valuations provided by independent pricing
services or, at fair value as determined in good faith in accordance with
procedures approved by the Trustees. Short-term debt investments maturing
within 60 days are valued at amortized cost which approximates market value.
JOINT REPURCHASE AGREEMENT Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Fund, along with other registered
investment companies having a management contract with John Hancock Advisers,
Inc. (the "Adviser"), a wholly-owned subsidiary of The Berkeley Financial Group,
may participate in a joint repurchase agreement transaction. Aggregate cash
balances are invested in one or more repurchase agreements, whose underlying
securities are obligations of the U.S. government and/or its agencies. The
Fund's custodian bank receives delivery of the underlying securities for the
joint account on the Fund's behalf. The Adviser is responsible for ensuring that
the agreement is fully collateralized at all times.
INVESTMENT TRANSACTIONS Investment transactions are recorded as of the date of
purchase, sale or maturity. Net realized gains and losses on sales of
investments are determined on the identified cost basis.
FEDERAL INCOME TAXES The Fund's policy is to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment companies and
to distribute all of its taxable income, including any net realized gain on
investment, to its shareholders. Therefore, no federal income tax provision is
required. For federal income tax purposes, the Fund has $1,050,989 of capital
loss carryforward available, to the extent provided by regulations, to offset
future net realized capital gains. If such carryforward is used by the Fund, no
capital gain distributions will be made. The carryforward expires December 31,
2002. Additionally, net capital losses of $233,511 attributable to security
transactions occurring after October 31, 1994 are treated as arising on the
first day (January 1, 1995) of the Fund's next taxable year.
DIVIDENDS, DISTRIBUTIONS AND INTEREST Dividend income on investment securities
is recorded on the ex-dividend date. Interest income on investment securities is
recorded on the accrual basis.
The Fund records all dividends and distributions to shareholders from
net investment income and realized gains on the ex-dividend date. Such
distributions are determined in conformity with federal income tax regulations,
which may differ from generally accepted accounting principles.
DISCOUNT ON SECURITIES The Fund accretes original issue discount from par value
on securities purchased from either the date of issue or the date of purchase
over the life of the security, as required by the Internal Revenue Code.
FINANCIAL FUTURES CONTRACTS At the time the Fund enters into a financial futures
contract, it is required to deposit with its custodian a specified amount of
cash or U.S. government securities, known as "initial margin", equal to a
certain percentage of the value of the financial futures contract being traded.
Each day, the futures contract is valued at the official settlement price of the
board of trade or U.S. commodities exchange. Subsequent payments, known as
"variation margin", to and from the broker are made on a daily basis as the
market price of the financial futures contract fluctuates. Daily variation
margin adjustments, arising from this "mark to market", are recorded by the Fund
as unrealized gains or losses.
When the contracts are closed, the Fund recognizes a gain or loss. Risks
of entering into futures contracts include the possibility that there may be an
illiquid market and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities.
13
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust - (Continued)
NOTE A -- ACCOUNTING POLICIES (UNAUDITED) - (CONTINUED)
For Federal income tax purposes, the amount, character and timing of the
Fund's gains and/or losses can be affected as a result of futures transactions.
At March 31, 1995, open positions in financial futures contracts were as
follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION OPEN CONTRACTS POSITION DEPRECIATION
- ---------- -------------- -------- ------------
<S> <C> <C> <C>
JUNE, 1995 10 U.S. TREASURY NOTE SHORT ($15,938)
</TABLE>
At March 31, 1995, the Fund has deposited in a segregated account
$26,250 par value of U.S. Treasury Bond, 10.75%, 08-15-05 and $64,500 par value
of U.S. Treasury Bond, 8.875%, 08-15-17, to cover margin requirements on open
financial futures contracts.
NOTE B -- MANAGEMENT FEE AND AFFILIATED SERVICES
Under the present investment management contract, the Fund pays a quarterly
management fee to the Adviser, for a continuous investment program, equivalent
on an annual basis, to the sum of (a) 0.650% of the first $150,000,000 of the
Fund's average weekly net asset value, (b) 0.375% of the next $50,000,000, (c)
0.350% of the next $100,000,000 and (d) 0.300% of the Fund's average weekly net
asset value in excess of $300,000,000.
In the event normal operating expenses of the Fund, exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, exceeds 1.5% of the
first $30,000,000 of the Fund's average weekly net asset value and 1.0% of the
Fund's average weekly net asset value in excess of $30,000,000, the fee payable
to the Adviser will be reduced to the extent of such excess and the Adviser will
make additional arrangements necessary to eliminate any remaining excess
expenses.
Messrs. Edward J. Boudreau, Jr. and Richard S. Scipione are directors
and/or officers of the Adviser and/or its affiliates, as well as Trustees of the
Fund. The compensation of unaffiliated Trustees is borne by the Fund. Effective
with the fees paid for 1995, the unaffiliated Trustees may elect to defer for
tax purposes their receipt of this compensation under the John Hancock Group of
Funds Deferred Compensation Plan. The Fund will make investments in other
John Hancock Funds, as applicable, to cover its liability with regard to the
deferred compensation. Investments to cover the Fund's deferred compensation
liability will be recorded on the Fund's books as an other asset. The deferred
compensation liability will be marked to market on a periodic basis and income
earned by the investment will be recorded on the Fund's books.
NOTE C -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of securities, other than short-term
securities, during the three months ended March 31, 1995, aggregated $30,163,882
and $29,397,762, respectively.
The cost of investments owned at March 31, 1995 (excluding the corporate
savings account) for Federal income tax purposes was $152,572,213. Gross
unrealized appreciation and depreciation of investment aggregated $3,141,012 and
$4,314,499, respectively, resulting in net unrealized depreciation of
$1,173,487.
14
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
INVESTMENT OBJECTIVE AND POLICY
John Hancock Investors Trust is a closed-end diversified management investment
company, shares of which were initially offered to the public on January 29,
1971 and are publicly traded on the New York Stock Exchange. Its primary
investment objective is to generate income for distribution to its shareholders,
with capital appreciation as a secondary objective. The preponderance of the
Fund's assets are invested in a diversified portfolio of debt securities, some
of which may carry equity features. Up to 50% of the value of the Fund's assets
may be invested in restricted securities acquired through direct placement. The
Fund may issue a single class of senior securities not to exceed 33 1/2% of the
market or fair value of its net assets and may borrow from banks as a temporary
measure for emergency purposes in amounts not to exceed 5% of its total assets
taken at cost. Substantially all of the Fund's net investment income per year
will be distributed to shareholders in quarterly payments. Net realized
short-term capital gains, if any, will be distributed annually; however, net
realized long-term capital gains may be retained and reinvested. All
distributions are paid in cash unless the shareholder elects to participate in
the Automatic Dividend Reinvestment Plan.
FINANCIAL FUTURES CONTRACTS
The Fund may buy and sell financial futures contracts and options on futures
contracts to hedge against the effects of fluctuations in interest rates and
other market conditions. The Fund's ability to hedge successfully will depend on
the Adviser's ability to predict accurately the future direction of interest
rate changes and other market factors. There is no assurance that a liquid
market for futures and options will always exist. 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.
The Fund will not engage in transactions in futures contracts and
options on futures for speculation, but only for hedging or other permissible
risk management purposes. All of the Fund's futures contracts and options on
futures will be traded on a U.S. commodity exchange or board of trade. The Fund
will not engage in a transaction in futures or options on futures if,
immediately thereafter, the sum of initial margin deposits on existing positions
and premiums paid for options on futures would exceed 5% of the Fund's total
assets.
DIVIDEND REINVESTMENT PLAN
John Hancock Investors Trust offers shareholders the opportunity to elect to
receive shares of the Fund's Common Shares in lieu of cash dividends. The Plan
is available to all shareholders without charge.
Any shareholder of record of John Hancock Investors Trust ("Investors")
may elect to participate in the Automatic Dividend Reinvestment Plan (the
"Plan") and receive shares of Investors' Common Shares in lieu of all or a
portion of the cash dividends.
Shareholders may join the Plan by filling out and mailing an
authorization card showing an election to reinvest all or a portion of dividend
payments. If received in proper form by State Street Bank and Trust Company,
P.O. Box 8209, Boston, Massachusetts 02266-8209 (the "Agent Bank") not later
than seven business days before the record date for a dividend, the election
will be effective with respect to all dividends paid after such record date.
Shareholders whose shares are held in the name of a broker or nominee should
contact the broker, bank, or nominee to participate in the Plan.
Participation in the Plan may be terminated at any time by written
notice to the Agent Bank and such termination will be effective immediately.
However, notice of termination must be received seven days prior to the record
date of any distribution to be effective for that distribution. Upon
termination, certificates will be issued representing the number of full shares
of Common Shares held by the Agent Bank. A shareholder will receive a cash
payment for any fractional share held.
The Agent Bank will act as agent for participating shareholders. The
Board of Trustees of Investors will declare dividends from net investment income
payable in cash or, in the case of shareholders participating in the Plan,
partially or entirely in Investors' Common Shares.
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust - (Continued)
DIVIDEND REINVESTMENT PLAN - (Continued)
The number of shares to be issued for the benefit of each shareholder will
be determined by dividing the amount of the cash dividend otherwise payable
to such shareholder on shares included under the Plan by the per share net
asset value of the Common Shares on the date for payment of the dividend,
unless the net asset value per share on the payment date is less than 95% of
the market price per share on that date, in which event the number of shares to
be issued to a shareholder will be determined by dividing the amount of the
cash dividend payable to such shareholder by 95% of the market price per share
of the Common Shares on the payment date. The market price of the Common Shares
on a particular date shall be the mean between the highest and lowest sales
price on the New York Stock Exchange on that date. Net asset value will be
determined in accordance with the established procedures of Investors. However,
if as of such payment date the market price of the Common Shares is lower than
such net asset value per share, the number of shares to be issued will be
determined on the basis of such market price. Fractional shares, carried out to
three decimal places, will be credited to your account. Such fractional shares
will be entitled to future dividends.
The shares issued to participating shareholders, including fractional
shares, will be held by the Agent Bank in the name of the participant. A
confirmation will be sent to each shareholder promptly, normally within seven
days, after the payment date of the dividend. The confirmation will show the
total number of shares held by such shareholder before and after the dividend,
the amount of the most recent cash dividend which the shareholder has elected to
reinvest and the number of shares acquired with such dividend.
The reinvestment of dividends does not in any way relieve participating
shareholders of any Federal, state or local income tax which may be due with
respect to such dividend. Dividends reinvested in shares will be treated on your
Federal income tax return as though you had received a dividend in cash in an
amount equal to the fair market value of the shares received, as determined by
the prices for shares of the Fund on the New York Stock Exchange as of the
dividend payment date. Distributions from the Fund's long-term capital gains
will be processed as noted above for those electing to reinvest in shares and
will be taxable to you as long-term capital gains. The confirmation referred to
above will contain all the information you will require for determining the cost
basis of shares acquired and should be retained for that purpose. At year end,
each account will be supplied with detailed information necessary to determine
total tax liability for the calendar year.
Additional information may be obtained from the Customer Service
Department, John Hancock Investors Trust, 101 Huntington Avenue, Boston,
Massachusetts 02199-7603, 1 (800) 843-0090.
16
<PAGE> 17
NOTES
John Hancock Funds - Investors Trust
17
<PAGE> 18
NOTES
John Hancock Funds - Investors Trust
18
<PAGE> 19
NOTES
John Hancock Funds - Investors Trust
19
<PAGE> 20
[LOGO] JOHN HANCOCK FUNDS Bulk Rate
A GLOBAL INVESTMENT MANAGEMENT FIRM U.S. Postage
101 HUNTINGTON AVENUE BOSTON, MA 02199-7603 PAID
So. Hackensack
Permit No. 750
[A 1/2" by 1/2" John Hancock Funds logo in upper left hand corner of the page.
A box sectioned in quadrants with a triangle in upper left, a circle in upper
right, a cube in lower left and a diamond in lower right. A tag line below
reads: "A Global Investment Management Firm."]
[A recycled logo in lower left hand corner with the caption "Printed on
Recycled Paper."]
JHF P50Q1 03/95
