John Hancock Funds
Investors
Trust
SEMI-ANNUAL REPORT
June 30, 1996
CHAIRMAN'S MESSAGE
TRUSTEES
Edward J. Boudreau, Jr.
Chairman
Dennis S. Aronowitz*
Richard P. Chapman, Jr.*
William J. Cosgrove*
Gail D. Fosler*
Anne C. Hodsdon
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
Anne C. Hodsdon
President
James B. Little
Senior Vice President and
Chief Financial Officer
Susan S. Newton
Vice President and Secretary
James J. Stokowski
Vice President and Treasurer
Thomas H. Connors,
Second Vice President and
Compliance Officer
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02110
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, Massachusetts 02109
Listed New York Stock Exchange Symbol: JHI
John Hancock Closed-End Funds: 1-800-843-0090
A 1 1/4" x 1" photo of Edward J. Boudreau Jr., Chairman and Chief
Executive Officer, flush right, next to second paragraph.
CHAIRMAN'S MESSAGE
DEAR SHAREHOLDERS:
Since February, much of the economic news has been good. Employment
levels are at their highest in years. Real wages may have started
growing again after a long stagnant stretch. And a fair share of
Corporate America logged second-quarter earnings that have exceeded
expectations, despite some glaring, headline-making exceptions in the
technology world. So why has the bond market soured this year and the
stock market been on a roller coaster? Isn't good economic news good?
What keeps the market interesting is that the answer is not
straightforward. While a healthy economy helps corporate profits grow,
an economy growing too fast, or the fear that it's heating up, sends
interest rates up out of concern that rising wages and higher prices
could spark inflation. That could prompt the Federal Reserve, which
views inflation as public enemy number one, to slow the economy down.
And the typical way to do that is to raise interest rates. For bonds,
higher interest rates mean lower bond prices, since the two move in
opposite directions. What's more, inflation erodes the value of a
bondholder's fixed income-stream. For stocks, higher interest rates
mean higher borrowing costs, which cut into profits.
Those are just a couple of the more textbook explanations. But there's
another element driving the market and it's far less tangible or
objective. It has to do with perception rather than reality. By taking
the market on a series of dizzying ups and downs lately, investors are
signaling uncertainties and fears, more than anything else. Since the
financial markets look forward, investors seem to be saying that they
are concerned about a number of things -- the specter of inflation,
the direction of interest rates, the upcoming election, the
possibility that markets may have advanced too far without a pullback.
So what should investors take away from it all? Probably the same
thing you've heard before -- that although the markets don't move up
in a straight line, they have historically rewarded patient, long-term
investors. Short-term turmoil is better as a topic of dinner party
conversation, rather than a call to action.
Sincerely,
/S/ Edward J. Boudreau Jr.
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CEO
By James K. Ho, Portfolio Manager
John Hancock
Investors Trust
Bond market declines as economy improves and
Federal Reserve stops cutting interest rates
After a year of record gains, the bond market took a breather during
the first half of 1996. When the period began, market participants
were hopeful that the same forces that drove the bond market to new
heights in 1995 -- moderate growth, low inflation and declining
interest rates -- would carry over into the new year. Early
developments were encouraging. On January 31, 1996, the Federal
Reserve lowered the rate banks charge each other for overnight loans -
- - known as the federal funds rate -- one-quarter percentage point, to
5.25%. It was the third Fed rate cut since July 1995. At the time,
further rate cuts seemed likely.
However, that optimism proved short-lived. In the weeks that followed,
a new pattern emerged from the stream of economic indicators
suggesting that the economy was doing better than expected. Many drew
the same conclusion from Fed Chairman Alan Greenspan's testimony
before Congress in February. Any lingering hopes of further rate cuts
to come were dashed conclusively in early March with the release of
the February employment report, which came in several times stronger
than anticipated, prompting a sharp sell-off in the bond market. The
March employment report was more of the same, leading many market
participants to conclude that the next Fed move would be a rate
increase, possibly before the end of the summer. Rates rose
accordingly, and bond prices fell. John Hancock Investors Trust made
it through the difficult period in better shape than most of its
competitors. The Fund's total return for the six months that ended
June 30, 1996 was -1.10%, at net asset value. Meanwhile, the average
open-end corporate debt A-rated fund had a total return of -2.32%,
according to Lipper Analytical Services.
Strong
employment
figures dashed
hopes of
further interest
rate cuts.
A 2 1/4" x 3 3/4" photo of the Fund management team at bottom right.
Caption reads: "James K. Ho (seated) and members of the Fund
management team."
Chart with the heading "Top Five Bond Sectors" at top left hand column.
Chart lists five holdings: 1) Banks & Financials 27%; 2) U.S. Government
Agencies 26%; 3) Utilities 14%; 4) Broadcasting/Communications 9%; 5)
Transportation 6%. A footnote below states "As a percentage of net
assets on June 30, 1996."
"...we de-
emphasized
Treasury
securities..."
Strategy review
During the past six months, the Fund gradually became more defensive.
One measure of that was the Fund's average duration, which fell during
the period. Duration measures how much a bond's price will rise or
fall with changes in interest rates. The longer the bond's duration,
the more its price will fluctuate with changes in interest rates. When
interest rates are falling and bond prices are rising, it pays to
lengthen the Fund's average duration; when interest rates are rising,
it pays to shorten up. The Fund's average duration was a little over
five years at the beginning of the period. As the economy grew
stronger and rates began to rise, we shortened the Fund's average
duration, ending the period at around 4.7 years. That was shorter than
some of our peers, helping us to outperform them. Other factors in the
Fund's favor were an overweighting compared to the group average in
corporate bonds, which totaled about two-thirds of the Fund's assets.
Advantageous sector and security selection helped too.
Table entitled "Scorecard" at bottom of left hand column. The header
for the left hand column is "Investment"; the header for the right
column is "Recent performance .. and what's behind the numbers." The
first listing is "Long Island Lighting Company" followed by a down
arrow and the phrase "Credit downgrade." The second listing is "U.S.
Treasury Securities" followed by a down arrow and the phrase "Economic
growth puts pressure on interest rates." The third listing is "Northwest
Airlines" followed by an up arrow and the phrase "Secured bonds attract
investors." Footnote below reads: "See "Schedule of Investments".
Investment holdings are subject to change."
Shift to cyclicals as economy improves
Throughout the spring, as the labor market improved and economic
output increased, we de-emphasized Treasury securities in favor of
high-quality corporate bonds and high-yield bonds. High-yield bonds --
also called junk bonds -- totaled about 18% of the Fund's assets at
the end of June. Our focus was on industries whose fortunes are
closely tied to the overall health of the economy, including paper,
steel and air transportation. In the airline sector, we got especially
good performance from a class of securities known as equipment trust
lease certificates -- secured loans backed by airplane leases. As a
rule, equipment trust lease certificates carry less credit risk than
ordinary unsecured bonds and therefore have higher credit ratings. At
the same time, they're cheaper because they don't trade as actively.
Top performers in that category included USAir and Northwest Airlines.
We pursued a similar strategy with the Fund's approximately 14% stake
in utility bonds. Among our favorite utilities was an Ohio Edison
secured bond, backed by a power plant. Disappointments included Long
Island Lighting Company, which received an unexpected credit
downgrade.
Bar chart with heading "Fund Performance" at top of the left hand
column. Under the heading is the footnote "For the six months ended
June 30, 1996." The chart is scaled in increments of 1% from top to
bottom, with 0% at the top and -3% at the bottom. Within the chart
there are two solid bars. The first represents the -1.10% total return
for John Hancock Investors Trust. The second represents the -2.32%
total return for the average open-end corporate debt A-rated debt fund.
A footnote below reads: "The total return for John Hancock Investors
Trust is at net asset value with all distributions reinvested. The
average open-end corporate debt A-rated fund is tracked by Lipper
Analytical Services."
The Fund maintained a significant investment in bonds issued by cable-
television providers and they totaled about 6% of net assets at the
end of the period. As part of our larger effort to make the Fund more
defensive, we exchanged long-term cable securities for medium-term
securities. Among the top performers in the sector was Continental
Cablevision, which received a credit upgrade following the
announcement of plans to merge with US West. Nearly 15% of the Fund's
net assets were invested in foreign bonds, mainly banks. European
banks outperformed their U.S. counterparts as the global economic
recovery spread to Europe.
Outlook
Toward the end of the period, most market analysts stopped wondering
if the Fed would raise interest rates; they assumed it would. Instead
the questions became when and by how much. The key variable is the
timing of the rate increase. The sooner the Fed acts, the greater the
chances of bringing inflationary pressures under control, and the
lesser the likelihood of having to keep raising rates indefinitely.
Indeed, if the Fed acts soon enough, we'd view that as an opportunity
to buy longer-term securities and lengthen the Fund's duration. That
would follow from our belief that a rate hike would calm the bond
market's inflation fears and set the stage for bond prices to improve.
If, on the other hand, the Fed delays taking action and lets
inflationary pressures build, the first rate increase may not be the
last. In that case, we'd be wary of extending the Fund prematurely,
and would prefer instead to preserve some flexibility. In any case,
shareholders seeking an idea of what to expect in the coming months
would do better to base their expectations on the modest results of
the past six months, rather than on the spectacular results of 1995.
"...a rate hike
would calm
the bond
market's
inflation
fears..."
- -------------------------------------------------------------------
This commentary reflects the views of the portfolio manager through
the end of the Fund's period discussed in this report. Of course, the
manager's views are subject to change as market and other conditions
warrant.
FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments at value -- Note C:
Publicly traded bonds (cost -- $149,553,012) $151,253,454
Joint repurchase agreement (cost -- $5,261,000) 5,261,000
Corporate savings account 127
------------
156,514,581
Receivable for investments sold 2,803,188
Interest receivable 2,701,515
Other assets 5,784
------------
Total Assets 162,025,068
- ------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for variation margin 67,219
Payable for investments purchased 3,022,611
Payable to John Hancock Advisers, Inc. and affiliates -- Note B 252,540
Accounts payable and accrued expenses 40,279
------------
Total Liabilities 3,382,649
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Capital paid-in 158,815,584
Accumulated net realized loss on investments and financial futures contracts (1,719,958)
Net unrealized appreciation of investments and financial futures contracts 1,581,858
Distributions in excess of net investment income (35,065)
------------
Net Assets $158,642,419
==============================================================================================================================
Net Asset Value Per Share:
(based on 7,600,771 shares of beneficial interest outstanding -
20 million shares authorized with no par value) $20.87
==============================================================================================================================
The Statement of Assets and Liabilities is the Fund's balance sheet and shows the value of what the Fund owns, is due and owes
on June 30, 1996. You'll also find the net asset value per share as of that date.
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Six months ended June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income:
Interest $ 6,808,840
-----------
Expenses:
Investment management fee -- Note B 501,809
Transfer agent fee 51,806
Printing 34,215
Custodian fee 25,260
Auditing fee 20,054
Financial services fee -- Note B 14,868
New York Stock Exchange fee 7,684
Trustees' fees 7,497
Legal fees 1,549
-----------
Total Expenses 664,742
- ------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 6,144,098
- ------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments and Financial Futures Contracts
Net realized loss on investments sold (304,440)
Net realized gain on financial futures contracts 3,422
Change in net unrealized appreciation/depreciation of investments (7,671,871)
Change in net unrealized appreciation/depreciation of financial futures contracts (119,156)
-----------
Net Realized and Unrealized Loss on Investments and Financial Futures Contracts (8,092,045)
- ------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations ($ 1,947,947)
==============================================================================================================================
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.
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
---------- ----------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From Operations:
Net investment income $ 6,144,098 $ 12,624,305
Net realized gain (loss) on investments sold and financial futures contracts (301,018) 525,924
Change in net unrealized appreciation/depreciation of investments
and financial futures contracts (7,791,027) 15,825,348
------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations (1,947,947) 28,975,577
------------- --------------
Distributions to Shareholders:
Dividends from net investment income ($0.8200 and $1.6800 per share,
respectively) (6,207,355) (12,614,831)
------------- --------------
From Fund Share Transactions
(Market value of shares issued to shareholders in reinvestment of
distributions) 823,490 1,697,329
------------- --------------
Net Assets:
Beginning of period 165,974,231 147,916,156
------------- --------------
End of period (including distributions in excess of net investment
income and undistributed net investment income of ($35,065) and $28,192,
respectively) $ 158,642,419 $ 165,974,231
============= =============
* Analysis of Fund Share Transactions:
Shares outstanding, beginning of period 7,560,164 7,477,780
Shares issued to shareholders in reinvestment of distributions 40,607 82,384
------------- -------------
Shares outstanding, end of period 7,600,771 7,560,164
============= =============
The Statement of Changes in Net Assets shows how th value of the Fund's net assets has changed since the end of the previous
fiscal period. The difference reflects earnings less expenses, any investment gains and losses, distributions paid to sharholders,
and any increase or decrease in money shareholders invested in the Fund. The footnote illustrates the number of Fund shares sold,
reinvested and redeemed during the last two periods, along with the corresponding dollar values.
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the period indicated, investment returns, key ratios and
supplemental data are listed as follows:
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30,
(UNAUDITED) YEAR ENDED DECEMBER 31
--------------------- ----------------------------------------------------------
1996 1995 1995 1994 1993 1992 1991
--------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period $ 21.95 $ 19.78 $ 19.78 $ 22.15 $ 21.62 $ 21.61 $ 20.08
-------- -------- -------- -------- -------- -------- --------
Net Investment Income 0.81 0.84 1.68 1.68 1.76 1.85 1.92
Net Realized and Unrealized Gain (Loss)
on Investments and Financial Futures
Contracts (1.07) 1.61 2.17 (2.34) 1.07 0.03 1.54
-------- -------- -------- -------- ------- -------- --------
Total from Investment Operations (0.26) 2.45 3.85 (0.66) 2.83 1.88 3.46
-------- -------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income (0.82) (0.84) (1.68) (1.68) (1.76) (1.87) (1.93)
Distributions in Net Realized Gain on
Investments
Sold and Financial Futures Contracts -- -- -- (0.03) (0.49) -- --
Temporary Overdistributions -- -- -- -- (0.05) -- --
-------- -------- -------- -------- -------- -------- --------
Total Distributions (0.82) (0.84) (1.68) (1.71) (2.30) (1.87) (1.93)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 20.87 $ 21.39 $ 21.95 $ 19.78 $ 22.15 $ 21.62 $ 21.61
======== ======== ======== ======== ======== ======== ========
Per Share Market Value, End of Period $ 19.63 $ 21.00 $ 20.50 $ 17.88 $ 22.375 $ 23.500 $ 24.000
Total Investment Return at Market Value (0.37%)(a) 22.38% (a) 24.33% ( 12.92%) 5.35% 6.54% 33.06%
Ratios and Supplemental Data
Net Assets, End of Period (000's omitted) $158,642 $160,858 $165,974 $147,916 $163,709 $157,757 $156,026
Ratio of Expenses to Average Net Assets 0.83%* 0.86%* 0.85% 0.88% 0.85% 0.82% 0.74%
Ratio of Net Investment Income to Average
Net Assets 7.64%* 8.17%* 7.93% 8.11% 7.78% 8.58% 9.33%
Portfolio Turnover Rate 59% 42% 102% 82% 99% 104% 81%
* On an annualized basis.
(a) Not annualized.
The Financial Highlights summarizes the impact of the following factors on a single share for the period indicated: net investment
income, gains (losses), dividends and total investment return of the Fund. It shows how the Fund's net asset value for a share has
changed since the end of the previous period. 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
</TABLE>
<TABLE>
<CAPTION>
Schedule of Investments
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
The Schedule of Investments is a complete list of all securities owned by Investors Trust on June 30, 1996. It's divided into two
main categories: publicly traded bonds and short-term investments. The publicly traded bonds are further broken down by industry
groups. Short-term investments, which represent the Fund's "cash" position, are listed last.
PAR VALUE
INTEREST S&P (000'S MARKET
ISSUER, DESCRIPTION RATE RATING* OMITTED) VALUE
- ------------------- ------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
PUBLICLY TRADED BONDS
Aerospace (0.37%)
Jet Equipment Trust Ser 1995-B
Cert 08-15-14, (R) 10.910% BB+ $ 550 $ 579,535
-------------
Banks (13.21%)
Abbey National First Capital B.V.,
Sub Note 10-15-04 8.200 AA- 1,000 1,056,430
ABN Amro Bank N.V. - Chicago Branch,
Global Bond 05-31-05 7.250 AA- 500 498,470
African Development Bank,
Sub Note 12-15-03 9.750 AA 1,000 1,152,380
Barclays North American Capital Corp.,
Gtd Cap Note 05-15-21 9.750 AA- 900 1,023,750
Den Danske Bank Aktieselskab,
Sub Note 06-15-05, (R) 7.250 BBB+ 1,000 988,960
First Nationwide Bank,
Sr Note 04-15-03 12.500 B 750 781,875
International Bank For Reconstruction and Development,
30 Yr Bond 10-15-16 8.625 AAA 3,800 4,319,232
Landeskreditbank Baden - Wurttemberg,
Sub Note 02-01-23 7.625 AAA 1,300 1,319,097
Midland American Capital Corp.,
Gtd Note 11-15-03 12.750 A 1,650 1,863,972
National Westminster Bank PLC - New York Branch,
Sub Note 05-01-01 9.450 AA- 1,200 1,324,032
Scotland International Finance No. 2 B.V.
Sub Gtd Note 01-27-04, (R) 8.800 A+ 2,000 2,161,560
Sub Gtd Note 11-01-06, (R) 8.850 A+ 750 826,466
Security Pacific Corp.,
Medium Term Sub Note 04-26-01 10.360 A- 1,750 1,993,845
Sub Note 11-15-00 11.500 A- 1,000 1,165,050
Westdeutsche Landesbank Girozentrale - New York Branch,
Sub Note 06-15-05 6.750 AA+ 500 483,785
-------------
20,958,904
-------------
Broadcasting (6.20%)
Cablevision Systems Corp.,
Sr Sub Deb 05-15-06 9.875 B 650 627,250
Century Communications Corp.,
Sr Sub Deb 10-15-03 11.875 B+ 850 903,125
Continental Cablevision, Inc.,
Sr Note 05-15-06, (R) 8.300% BB+ 625 646,225
Sr Sub Deb 06-01-07 11.000 BB- 1,210 1,358,225
Jones Intercable, Inc.,
Sr Sub Deb 07-15-04 11.500 B+ 1,000 1,087,500
Le Groupe Videotron Ltee,
Sr Note 02-15-05 10.625 BB+ 250 261,250
Rogers Cablesystems Ltd.,
Sr Second Second Priority Note 03-15-05 10.000 BB+ 900 886,500
SFX Broadcasting, Inc.,
Sr Sub Note 05-15-06, (R) 10.750 B- 400 396,500
TeleWest PLC,
Sr Deb 10-01-06 9.625 BB 350 342,125
TKR Cable I, Inc.,
Sr Deb 10-30-07 10.500 BBB- 2,000 2,192,500
Viacom Inc.,
Sr Note 06-01-05 7.750 BB+ 575 560,637
Sub Deb 07-07-06 8.000 BB- 625 571,875
-------------
9,833,712
-------------
Commercial Real Estate (0.31%)
TriNet Corporate Realty Trust, Inc.,
Note 05-15-01 7.300 BBB- 500 498,300
-------------
Containers (0.39%)
Riverwood International Corp.,
Sr Sub Note 04-01-08 10.875 B 625 615,625
-------------
Cosmetics & Toiletries (0.44%)
Johnson & Johnson,
Deb 11-15-23 6.730 AAA 750 690,713
-------------
Finance (10.67%)
AAMES Mortgage Trust,
Pass thru Ctf Ser 1996-B 06-27-24 7.625 AAA 625 630,859
Banc One Credit Card Master Trust,
Class A Asset Backed Ctf Ser 1994-B 12-15-99 7.550 AAA 1,000 1,017,500
CIT Group Holdings, Inc. (The),
Medium Term Sr Sub Cap Note 03-15-01 9.250 A 1,000 1,091,000
Conseco, Inc.,
Sr Note 12-15-04 10.500 BBB- 600 686,130
CS First Boston,
Sub Note 05-15-06, (R) 7.750 A3 1,000 1,006,700
Fairfax Financial Holdings, Ltd.,
Note 04-15-26 8.300 BBB+ 470 463,777
Greentree Financial Corp.,
Ctf Home Improv Ln Ser 1995-D CI M-2 09-15-25 6.950 AAA 650 634,560
Ctf Home Improv Ln Ser 1996-C CI A-4 06-15-26 7.800 AAA 750 759,140
IMC Home Equity Loan Trust,
Pass thru Ctf Ser 1996-A5 12-25-03 6.290 AAA 720 688,950
Imexsa Export Trust No. 96-1,
Sr Export Ctf 05-31-03, (R) 10.125% BB+ 312 313,170
MBNA Master Credit Card Trust,
Asset Backed Ctf, Ser 1995-D 06-15-00 6.050 AAA 1,585 1,548,830
Merrill Lynch Mortgage Investors, Inc.,
Sr/Sub Pass thru Ctf Ser 1992, Class B (Sub) 04-15-12 8.500 AA 424 433,023
Money Store Trust, (The),
Asset Backed Ctf, Ser 1996-B 05-15-02 7.350 AAA 500 505,000
Polysindo International Finance Co., B.V.,
Gtd Second Note 06-15-06 11.375 BB- 450 459,000
Santander Financial Issuances Ltd.,
Sub Gtd Note 04-15-05 7.875 A+ 1,000 1,028,940
Showboat Marina Finance Corp.,
1st Mtg Note 03-15-03, (R) 13.500 B 500 542,500
Standard Credit Card Master Trust I,
Class A Credit Card Part Ctf Ser 1993-2 10-07-04 5.950 AAA 1,335 1,253,231
Class A Credit Card Part Ctf Ser 1994-2 04-07-08 7.250 AAA 1,000 999,680
Class A Credit Card Part Ctf Ser 1995-2 01-07-00 8.625 AAA 1,250 1,265,225
Class A Credit Card Part Ctf Ser 1995-9 10-07-07 6.550 AAA 500 476,560
UCFC Home Equity Loan,
Pass thru Ctf Ser 1996-B1 11-15-27 8.200 AAA 600 611,715
URC Holdings Corp.,
Sr Note 06-30-06, (R) 7.875 A- 500 507,110
------------
16,922,600
------------
Glass Products (0.51%)
Owens-Illinois, Inc.,
Sr Deb 12-01-03 11.000 BB 750 806,250
------------
Gold Mining & Processing (1.19%)
Magma Copper Co.,
Sr Sub Note 12-15-01 12.000 BB+ 1,755 1,893,329
------------
Governmental - Foreign (1.84%)
Nova Scotia, Province of,
Deb 04-01-22 8.750 A- 750 834,788
Ontario, Province of,
Bond 06-04-02 7.750 AA- 500 521,770
Deb 08-31-12 15.250 AA- 350 402,791
Quebec, Province of,
Deb 10-01-13 13.000 A+ 500 582,430
Saskatchewan, Province of,
Deb 12-15-20 9.375 BBB+ 480 571,709
------------
2,913,488
------------
Governmental - U.S. ( 15.98%)
United States Treasury,
Bond 08-15-17 8.875% AAA 6,005 7,209,723
Bond 05-15-18 9.125 AAA 3,250 4,000,035
Bond 02-15-23 7.125 AAA 3,285 3,320,412
Note 04-15-98 7.875 AAA 1,000 1,029,530
Note 05-15-98 9.000 AAA 3,785 3,976,029
Note 11-30-99 7.750 AAA 3,025 3,149,781
Note 05-15-01 8.000 AAA 1,028 1,092,887
Note 02-15-05 7.500 AAA 1,500 1,578,045
------------
25,356,442
------------
Governmental - U.S. Agencies (10.20%)
Federal Home Loan Mortgage Corp.,
30 Yr SF Pass thru Ctf 01-01-16 11.250 AAA 677 754,318
Federal National Mortgage Association,
15 Yr SF Pass thru Ctf 02-01-08 7.500 AAA 626 630,107
15 Yr SF Pass thru Ctf 01-25-05 8.000 AAA 1,000 1,040,000
30 Yr SF Pass thru Ctf 10-01-23 7.000 AAA 853 823,959
Government National Mortgage Association,
30 Yr SF Pass thru Ctf 11-15-23 7.000 AAA 687 661,770
30 Yr SF Pass thru Ctf 02-15-24 to 02-15-26 7.500 AAA 3,248 3,204,665
30 Yr SF Pass thru Ctf 11-15-22 to 05-15-23 8.000 AAA 1,266 1,281,873
30 Yr SF Pass thru Ctf 01-15-23 to 04-15-23 8.500 AAA 2,215 2,279,388
30 Yr SF Pass thru Ctf 04-15-21 9.000 AAA 694 730,402
30 Yr SF Pass thru Ctf 11-15-19 to 02-15-25 9.500 AAA 1,575 1,684,481
30 Yr SF Pass thru Ctf 11-15-20 10.000 AAA 405 440,920
Tennessee Valley Authority,
Power Bonds 1989 Ser G 11-15-29 8.625 AAA 2,500 2,657,050
------------
16,188,933
------------
Healthcare (0.51%)
Dynacare Inc.,
Sr Note 01-15-06 10.750 B+ 450 451,125
Smith Food & Drug Centers, Inc.,
Sr Sub Note 05-15-07 11.250 B- 350 351,750
------------
802,875
------------
Insurance (3.11%)
Equitable Life Assurance Society of The United States
(The), Surplus Note 12-01-05, (R) 6.950 A 550 526,625
Liberty Mutual Insurance Co.,
Surplus Note 05-04-07, (R) 8.200 A2 1,000 1,045,840
Massachusetts Mutual Life Insurance Co.,
Surplus Note 11-15-23, (R) 7.625 AA- 1,050 1,014,594
New York Life Insurance Co.,
Surplus Note 12-15-23, (R) 7.500 AA 1,780 1,661,203
Sun Canada Financial Co.,
Sub Note 12-15-07, (R) 6.625 AA 725 678,470
------------
4,926,732
------------
Leisure & Recreation (0.12%)
Mohegan Tribal Gaming Authority,
Sr Second Note 11-15-02, (R) 13.500% NR 150 188,250
------------
Medical/Dental (0.54%)
Fisher Scientific International Inc.,
Note 12-15-05 7.125 BBB 900 855,945
------------
Oil & Gas (2.08%)
Ashland Oil, Inc.,
SF Deb 10-15-17 11.125 BBB 1,000 1,101,400
Maxus Energy Corp.,
Deb 05-01-13 11.250 BB- 125 127,813
Norsk Hydro, A.S.,
Deb 06-15-23 7.750 A- 1,000 1,001,520
TransTexas Gas Corp.,
Sr Second Note 06-15-02 11.500 BB- 1,075 1,069,625
------------
3,300,358
------------
Paper (1.59%)
APP International Finance Co. B.V.,
Gtd Second Note 10-01-05 11.750 BB 445 456,125
Georgia-Pacific Corp.,
Deb 02-15-18 9.500 BBB- 450 470,682
Repap New Brunswick,
Sr Note 04-15-05 10.625 B+ 425 399,500
S.D. Warren Co.,
Sr Sub Note 12-15-04 12.000 B+ 650 685,750
Stone Consolidated Corp.,
Sr Note 12-15-00 10.250 B+ 500 515,625
------------
2,527,682
------------
Publishing (2.33%)
News America Holdings Inc.,
Deb 08-10-18 8.250 BBB 500 492,465
Sr Note 10-15-99 9.125 BBB 1,000 1,064,310
Sr Note 12-15-01 12.000 BBB 750 813,555
Time Warner Inc.,
Deb 01-15-13 9.125 BBB- 1,275 1,331,585
------------
3,701,915
------------
Retail (1.74%)
Kroger Co. (The),
Lease Ctf 02-01-09 12.950 BB 1,910 2,110,550
May Department Stores Co., (The),
Deb 06-15-18 10.750 A 126 132,077
Safeway Stores, Inc.,
Lease Ctf 01-15-09 13.500 BBB- 474 524,138
------------
2,766,765
------------
Steel (1.34%)
NS Group, Inc.,
Sr Second Note 07-15-03 13.500% B- 315 305,550
Republic Engineered Steel Corp.,
1st Mtg Note 12-15-01 9.875 B 475 441,750
UCAR Global Enterprises Inc.,
Sr Sub Note 01-15-05 12.000 B+ 405 459,675
Weirton Steel Corp.,
Sr Note 03-01-98 11.500 B 385 404,250
Sr Note 10-15-99 10.875 B 265 276,925
Sr Note 07-01-04 11.375 B 250 245,220
------------
2,133,370
------------
Telecommunications (0.67%)
Lenfest Communications, Inc.,
Sr Sub Note 06-15-06, (R) 10.500 BB- 475 479,750
TCI Communications, Inc.,
Deb 08-01-15 8.750 BBB- 600 589,728
------------
1,069,478
------------
Tobacco (0.67%)
RJR Nabisco, Inc.,
Note 12-01-02 8.625 BBB- 900 912,591
Note 09-15-03 7.625 BBB- 150 142,917
------------
1,055,508
------------
Transportation (5.54%)
Delta Air Lines, Inc.,
Trust Note Ser 89-A 06-01-08 10.000 BBB- 2,000 2,334,080
Northwest Airlines Corp.,
Pass thru Ctf Ser 1996-1 01-02-05 10.150 BB+ 400 414,000
Pass thru Ctf Ser 1996-1 01-02-15 8.970 BB+ 400 417,600
NWA Inc.,
Note 08-01-96 8.625 B 2,285 2,285,000
Rail Car Trust No. 1992-1,
Trust Note Ser 92-1 06-01-04 7.750 AAA 1,640 1,691,491
Scandinavian Airlines System,
Bond 07-20-99 9.125 A3 700 742,875
USAir 1990-A Pass Through Trusts,
Pass thru Ctf Ser 1990-A1 03-19-05 11.200 B+ 903 900,338
------------
8,785,384
------------
Utilities (13.79%)
AES Corp.,
Sr Sub Note 07-15-06 10.250 B+ 450 451,688
Calpine Corp.,
Sr Note 05-15-06, (R) 10.500 B 765 766,913
CE Casecnan Water & Energy Co., Inc.,
Sr Second Note Ser A 11-15-05, (R) 11.450% BB 500 507,500
Cleveland Electric Illuminating Co.,
1st Mtg Ser 2005-B 05-15-05 9.500 BB 900 887,274
CTC Mansfield Funding Corp.,
Second Lease Oblig 09-30-16 11.125 B+ 1,900 1,947,728
E.I.P. Refunding Corp.,
Second Fac Bond 10-01-12 10.250 B+ 738 769,963
Empresa Electrica,
Yankee Dollar Note 05-01-03 7.300 BBB+ 525 522,690
First PV Funding Corp.,
Lease Oblig Ser 1986 A 01-15-14 10.300 B+ 300 318,000
Lease Oblig Ser 1986 B 01-15-16 10.150 B+ 1,500 1,578,750
Fitchburg Holding Corp.,
Second Note 01-31-03, (r) 15.750 BBB 2,179 2,359,137
GG1B Funding Corp.,
Second Lease Oblig 01-15-11 7.430 BBB- 887 844,200
GTE Corp.,
Deb 11-15-17 10.300 BBB+ 500 547,750
Deb 11-01-20 10.250 BBB+ 1,500 1,703,820
Hydro-Quebec (Gtd By Province of Quebec),
Deb 02-01-03 7.375 A+ 750 759,518
Deb Ser HS 02-01-21 9.400 A+ 850 985,218
Iberdrola International B.V.,
Gtd Note 10-01-02 7.500 AA- 1,000 1,012,500
Long Island Lighting Co.,
Deb 03-15-03 7.050 BB+ 750 678,210
Gen Ref Mtg 05-01-21 9.750 BBB- 450 462,303
Gen Ref Mtg 07-01-24 9.625 BBB- 750 768,848
Louisiana Power & Light Co.,
Second Lease Oblig Bond Ser B 01-02-17 10.670 BBB- 1,350 1,444,850
Midland Funding Corp. I,
Sr Second Lease Oblig Ser C 07-23-02 10.330 BB- 1,281 1,349,543
Midland Funding Corp. II,
Deb 07-23-05 11.750 B- 175 182,805
System Energy Resources, Inc.,
Second Lease Oblig 01-15-14 8.200 BBB- 500 463,370
Tenaga Nasional Berhad,
Note 06-15-04, (R) 7.875 A+ 550 568,783
------------
21,881,361
------------
TOTAL PUBLICLY TRADED BONDS
(Cost $149,553,012) (95.34%) 151,253,454
===== ============
<CAPTION>
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
Joint Repurchase Agreement (3.32%)
Investment in a joint repurchase agreement transaction with
Toronto Dominion Bank, Ltd., Dated 06-28-96, due 07-01-96
(secured by U.S. Treasury Bills, 5.38% through 5.69%,
due 12-12-96 through 06-26-97 and U.S. Treasury Bonds,
7.250% through 7.500%, due 05-15-16 through 11-15-16,
and U.S. Treasury Notes, 4.375% through 7.750%, due
08-15-96 through 01-31-00) - Note A 5.500% $5,261 $ 5,261,000
------------
Corporate Savings Account (0.00%)
Investors Bank & Trust Company
Daily Interest Savings Account
Current Rate 4.75% 4.75 127
============
TOTAL SHORT-TERM INVESTMENTS (3.32%) 5,261,127
------ ------------
TOTAL INVESTMENTS ( 98.66%) $156,514,581
====== ============
<CAPTION>
NOTES TO 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:
MARKET MARKET
VALUE AS A VALUE
PERCENTAGE AS OF
ACQUISITION ACQUISITION OF FUNDS JUNE 30,
DATE COST NET ASSETS 1996
---------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Fitchburg Holdings Corp., Second. Note, 15.75%, 01-31-03 02-10-81 $2,293,925 1.49% $2,359,137
(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. Rule144A securities amounted to
$15,406,654 as of June 30, 1996. See Note A of the Notes to Financial Statements for valuation policy.
* Credit ratings are rated by Moody's Investor Services or John Hancock Advisers, Inc. where Standard and Poor's 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
</TABLE>
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Investors Trust
(Unaudited)
NOTE A --
ACCOUNTING POLICIES
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 $744,673 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 $158,569 attributable to security transactions occurring
after October 31, 1995 are treated as arising on the first day
(January 1, 1996) of the Fund's next taxable year.
DIVIDENDS, INTEREST AND DISTRIBUTIONS Dividend income on investment
securities is recorded on the ex-dividend date. Interest income on
investment securities is recorded on the accrual basis.
The Fund records all 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.
USE OF ESTIMATES The preparation of these financial statements in
accordance with generally accepted accounting principles incorporates
estimates made by management in determining the reported amounts of
assets, liabilities, revenues, and expenses of the Fund.
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.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 June 30, 1996, open positions in financial futures contracts were
as follows:
UNREALIZED
EXPIRATION OPEN CONTRACTS POSITION DEPRECIATION
- --------- --------------- -------- ------------
SEPT 1996 76 U.S. Treasury Note SHORT ($119,156)
At June 30, 1996, the Fund has deposited in a segregated account
$30,000 par value of U.S. Treasury Bond, 9.125%, 05-15-18 and $25,000
par value of U.S. Treasury Bond, 10.75%, 08-15-05, to cover margin
requirements on open financial futures contracts.
NOTE B --
MANAGEMENT FEE and
ADMINISTRATIVE 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.
Mr. Edward J. Boudreau, Jr., Mr. Richard S. Scipione and Ms. Anne C.
Hodsdon 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 makes investments
into other John Hancock funds, as applicable, to cover its liability
for the deferred compensation. Investments to cover the Fund's
deferred compensation liability are recorded on the Fund's books as an
other asset. The deferred compensation liability and the related other
asset are always equal and are marked to market on a periodic basis to
reflect any income earned by the investment as well as any unrealized
gains or losses. At June 30, 1996, the Fund's investment to cover the
deferred compensation had unrealized appreciation of $572.
NOTE C --
INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of securities, other than obligation
of the U.S. government and its agencies and short-term securities,
during the period ended June 30, 1996 aggregated $43,948,204 and
$47,714,382, respectively. Purchases and proceeds from sales of
obligations of the U.S. government and its agencies aggregated
$45,248,965 and $42,350,779, respectively.
The cost of investments owned at June 30, 1996 (excluding the
corporate savings account) for Federal income tax purposes was
$154,814,012. Gross unrealized appreciation and depreciation of
investments at June 30, 1996 aggregated $4,094,063 and $2,393,621,
respectively, resulting in net unrealized appreciation of $1,700,442.
SUPPLEMENTAL INFORMATION
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 1/3% 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. 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.
NOTES
John Hancock Funds - Investors Trust
[THIS PAGE INTENTIONALLY LEFT BLANK]
NOTES
John Hancock Funds - Investors Trust
[THIS PAGE INTENTIONALLY LEFT BLANK]
A 1/2" x 1/2" John Hancock Funds logo in upper left hand
corner of the page. A box sectioned in quadrants with a
triangle in upper left, a circle in upper right, a cube in
lower left and a diamond in lower right. A tag line below
reads "A Global Investment Management Firm."
101 Huntington Avenue, Boston, MA 02199-7603
Bulk Rate
U.S. Postage
PAID
S. Hackensack, NJ
Permit No. 750
A recycled logo in lower left hand corner with caption
"Printed on Recycled Paper."
P50SA 6/96
8/96
