<PAGE>
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June 30, 1997
Changing Needs. Personal Choices.
S E M I - A N N U A L R E P O R T
[ARTWORK APPEARS HERE]
[LOGO OF JOHN HANCOCK APPEARS HERE]
[LOGO OF JOHN HANCOCK FUNDS
APPEARS HERE]
[LOGO OF INDEPENDENCE INVESTMENT
ASSOCIATES, INC. APPEARS HERE]
[LOGO OF BRINSON PARTNERS, INC.
APPEARS HERE]
[LOGO OF INVESCO(R) APPEARS HERE]
[LOGO OF JP MORGAN APPEARS HERE]
[LOGO OF JANUS APPEARS HERE]
[LOGO OF NEUBERGER & BERMAN,
L.L.C. APPEARS HERE]
[LOGO OF STATE STREET GLOBAL
ADVISORS APPEARS HERE]
[LOGO OF T. ROWE PRICE APPEARS
HERE]
VARIABLE SERIES TRUST
INSURANCE FOR THE UNEXPECTED.
INVESTMENTS FOR THE OPPORTUNITIES./SM/
[LOGO OF JOHN HANCOCK APPEARS HERE]
- --------------------------------------------------------------------------------
<PAGE>
Dear Variable Contract Owner:
Over the course of the past year, both the
domestic economy and equity markets have been [PICTURE OF THOMAS J. LEE,
moving in a generally positive direction as PRESIDENT AND VICE
measured by key economic indicators and broad- CHAIRMAN APPEARS HERE]
based market indices. International markets have
also been generally positive, though emerging
markets have shown a more robust rate of growth.
However, these positive returns have not come
without volatility.
To quote an old English proverb, "A man who cannot abide a bad market deserves
not a good one." For most people, enduring the ebbs and flows of the market
requires a sound investment strategy that involves asset allocation linked to
time horizon and risk tolerance.
At John Hancock, we employ sound strategies of our own. In recent years, we have
been pursuing several innovative business initiatives. These initiatives involve
expanding John Hancock's retail marketing efforts through traditional and
alternative distribution channels while building on two of the company's core
competencies -- insurance and investments.
Established 135 years ago, John Hancock is widely recognized as one of the
nation's leading providers of variable life insurance and annuity products. More
recently, the company has established a solid infrastructure and growing
reputation in the investment industry. John Hancock and its subsidiaries offer a
wide variety of fixed-income, equity, and international investments, with more
than $100 billion in assets under management.
As the primary investment advisor for the Variable Series Trust, John Hancock
has created an investment structure featuring 18 unique fund choices managed by
leading retail and institutional money managers. Before selecting managers for
each portfolio, John Hancock engaged in a careful screening process, identifying
managers with demonstrated skill in delivering superior investment returns
(relative to appropriate benchmarks), exercising investment discipline (sticking
to the objective), and employing effective risk control. On behalf of our
customers, John Hancock monitors the performance and compliance of each
portfolio to ensure that these investments live up to expectations.
In the years to come, we hope to expand our
relationship with you when it comes to insurance
[PICTURE OF HENRY D. SHAW, for the unexpected and investments for the
CHAIRMAN APPEARS HERE] opportunities. And so, while the investment
climate is ever-changing, one thing remains
constant: John Hancock's commitment to
delivering value through quality products and
responsive service. As always, your John Hancock
registered representative is available to
personally assist you in these important
matters.
Sincerely,
/s/ Henry D. Shaw /s/ Thomas J. Lee
Henry D. Shaw Thomas J. Lee
Chairman President and Vice Chairman
<PAGE>
ECONOMIC OVERVIEW: MID-YEAR REVIEW 1997
JOHN HANCOCK ECONOMIC RESEARCH
After picking up speed to over 3% during 1996, the US economy was expected to
slow in early 1997. Instead, the pace of growth accelerated to 6% in the first
quarter before dropping back in the second. Even with a slower second half,
consistent with consensus forecasts, growth for the year as a whole is likely
to exceed 3% once again.
The long-run capacity of the economy is generally estimated to be increasing at
2-2.5% per year, and continued above-trend growth in 1997 has therefore reduced
unused capacity--both capital and labor. In particular, the unemployment rate
has declined from the already low 5.4% rate of 1996 to 5% by mid-1997. This was
expected to raise inflationary pressures, which have historically followed
whenever the unemployment rate fell below 5.5-6%. Instead, inflation actually
declined in the first half of 1997.
With little inflation and job growth at a rate of 2-3 million net new jobs per
year, it is not surprising that consumer confidence measures rose to new
records during 1997. Despite high levels of consumer debt (and high rates of
personal bankruptcy and defaults), the momentum of job growth, income growth
and consumer spending has continued to sustain the expansion. This is already
the third longest economic upswing in US history, and there are no obvious
imbalances that would derail it before it sets the all-time record in the year
2000.
The Federal Reserve raised short-term rates in March, 1997, responding to
excessive growth which it feared might spark inflation. Signs of moderation in
the second quarter made additional increases unnecessary, spurring further
advances in financial markets. The Fed, and most analysts, expect an economic
slowdown, but are concerned that this may puncture the mood of optimism that
supports current asset prices.
The combination of above-trend real growth, low unemployment and minimal
inflation has seemed the best of all possible worlds for financial markets.
Concern about the response of the Federal Reserve to falling unemployment
caused some volatility early in 1997, but both long and short-term interest
rates had reversed earlier increases by mid-year. Optimistic valuations in
equity markets were thus supported by low interest rates and by rising
corporate earnings, which were fuelled by declining interest costs, higher
overseas earnings, and a drive for greater efficiency.
Among major US trading partners, Japan's growth was disappointing in early
1997, while Canada and western Europe started to recover from their weak
performance in 1996. Mexico, rebounding from its recent crisis, grew faster
than expected in 1996, and this trend is continuing so far in 1997.
Overall, growth in most of the developed world will continue to be slower than
in the emerging markets of Asia and Latin America. These countries are growing
two to three times faster than the US, and are now major players in the world
economy. Despite recent currency volatility, more than twice as much of the
world's economic growth is expected to take place in Asia as in all of North
America during the next 5-10 years. A significant component of earnings at
major US corporations is now coming from Asian operations, and this trend will
undoubtedly continue.
<PAGE>
INCEPTION: MARCH 29, 1986
MONEY MARKET PORTFOLIO
JOHN HANCOCK PETER MITSOPOULOS
After more than a year of holding the Fed Funds target rate steady, the
Federal Reserve increased the rate 25 basis points to 5.50%. The initial
reaction to this move was muted as money fund managers felt they could finally
see a direction in Fed policy. Except for brief periods prior to the move, the
short end of the yield curve (30 days to 90 days) remained relatively flat.
With no evidence of a possible decrease in the Fed Funds rate and only
speculation of when an increase would next occur, it clearly made no sense to
extend maturities without a corresponding pickup in yield. The Portfolio's
average maturity was virtually unchanged at 37 days at the end of March versus
36 days at the end of December.
As the second quarter began (and the Fed's next meeting scheduled for May),
bearish sentiment surfaced almost immediately and the money market curve
steepened. The interest rate spread between 30 day and 90 day investments
widened and reached a high of around 13 basis points by the end of April. We
began extending maturities in April, picking up yield as the curve steepened.
By the end of the quarter the Portfolio had reached an average maturity of 46
days.
Except for the persistently low unemployment rate and tight labor markets,
economic indicators were not exhibiting the signs of inflation critical for
what was a widely expected further tightening at the May meeting. The May
meeting passed with no action. And, with no meeting scheduled in June,
investor sentiment reversed direction and the yield curve flattened to a near
zero spread by the end of the quarter.
[GRAPH APPEARS HERE]
Historical Portifolio Return
<TABLE>
<CAPTION>
Money Market
Value Portfolio
----- ---------
<S> <C>
6/30/87 10,058.2
6/30/89 11,715.17
6/30/91 13,658.25
6/30/93 14,759.84
6/30/95 16,034.56
6/30/97 17,825.38
</TABLE>
Top Ten Holdings (June 30,1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
Investments % of Investments
<S> <C> <C>
MBNA America Bank N.A. 5.0% 2.8%
Sanwa Business Credit Corp. 4.9% 2.3%
Goldman Sachs Group LP 4.9% 1.1%
Coca-Cola Co. 4.7% 3.3%
Falcon Asset Securitization 4.7% 4.4%
Lehman Brothers Holders, Inc. 4.7% 4.2%
National Bank of Canada 4.5% 4.2%
BT Bank of Canada 4.5% N/A
B.A.T. Capital Corp. 4.5% N/A
PHH Group, Inc. 4.5% 5.1%
</TABLE>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market MorningStar
Portfolio Peer Group+
------------ -----------
<S> <C> <C>
Year to Date** 2.62% 1.98%
1 Year 5.40% 5.20%
5 Years 4.50% 4.16%
10 Years 5.89% 4.67%
</TABLE>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
Investments % of Investments
<S> <C> <C>
Financial Services 45.2% 63.4%
Foreign 18.1% 9.9%
Food, Beverage and Tobacco 11.9% 6.3%
Banks and Finance 7.8% 6.2%
Automotive and Rubber 7.8% 3.2%
</TABLE>
The Money Portfolio is neither insured nor guaranteed by the U.S. Government
there in no guarentee the fund will be able to maintain a stable net asset
value of $10.00/share.
* Total returns are for the period ending June 30, 1997. Returns represent past
past performance, assume reinvestment of all distributions, and are not
indicative of future performance.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable seperate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: Morningstar, Inc. Data as of 6/30/97. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
2
<PAGE>
INCEPTION: MAY 1, 1994
SHORT-TERM U.S. GOVERNMENT PORTFOLIO INDEPENDENCE INVESTMENT ASSOCIATES,
INC. TOM SPICER
During the second quarter, interest rates fell moderately, allowing the
Portfolio to show a positive absolute performance. Year-to-date, the Short Term
Government Portfolio has mirrored it's benchmark (the Merrill Lynch 1-5 Yr
Government Index) with a net return of 2.62% versus 2.64%.
Many investors grew increasingly weary of the rising equity markets and
decided a correction was not far away, transferring assets into funds not
unlike this one. The Portfolio was kept fully invested and inflows were used to
rebalance the Portfolio as needed, minimizing transaction fees. The Portfolio's
strategic over-exposure in the Agency sector has been a major contributor to
performance. At quarter-end the fund had 65% in Agencies versus 18% for the
benchmark. These securities are an excellent source of additional yield and
also provide exposure to a sector which has historically outperformed the
Treasury market on a total return basis. This over-weighting decision relates
directly to our philosophy of seeking cheap, predictable cashflows. That is, we
believe Agency paper offers incremental yield without much additional risk as
to the certainty of payment and therefore an attractive risk/return
relationship.
Looking forward, we expect the interest rate environment to be more subdued
and somewhat range-bound. The Fed will most likely be on hold for the coming
months, closely watching the economic indicators as they are released. As far
as portfolio strategy is concerned, we expect to maintain a relatively over-
weighted position in the Agency sector and, given the conservative nature of
the fund, overall interest rate risk will be kept to minimum.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Short-Term U.S. Merrill Lynch 1-5 U.S.
Govt. Portfolio Govt. Bond Index
<S> <C> <C>
6/30/94 10,010.06 10,033
6/30/95 10,768.78 10.908
6/30/96 11,211.29 11,474
6/30/97 11,894.39 12,245
</TABLE>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Treasury 34.7% 37.9%
Federal National mortgage Assoc. 16.8% 17.8%
Federal Home Loan Banks 12.2% 12.8%
Federal Farm Credit Banks 11.1% 10.7%
Private Export Funding Co. 9.5% 8.9%
Tennessee Valley Authority 6.5% N/A
State of Israel Agency for
International Development 6.0% 6.1%
Federal Home Loan Mortgage Corp. 3.2% 3.3%
</TABLE>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-Term U.S. Merrill Lynch 1-5 MorningStar
Gov't. Portfolio U.S. Govt. Bond Index Peer Group+
---------------- --------------------- -----------
<S> <C> <C> <C>
Year to Date** 1.62% 2.64% 3.37%
1 year 6.09% 6.73% 8.25%
3 Years 5.91% 6.87% 8.11%
Since Inception 5.63% 6.61% N/A
</TABLE>
Top Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Government Agencies 65.4% 59.8%
U.S. Governmental 34.7% 37.9%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
3
<PAGE>
INCEPTION: MARCH 29, 1986
SOVEREIGN BOND PORTFOLIO JOHN HANCOCK ADVISERS, INC. JIM HO
For the six months ended June 30, 1997, Sovereign Bond Portfolio returned
3.62% versus 2.74% for the Lehman Brothers Government/Corporate Bond Index.
During this period, interest rates vacillated within a modest trading range,
while corporate bond spreads narrowed and widened several times relative to
Treasuries.
No major changes were made to affect duration, though the Portfolio took
advantage of the spread widening to add to positions in Yankee and emerging
market credits. As investor confidence returned, rates declined and spreads
compressed again, improving Portfolio results via price appreciation.
Investment in Project Finance Notes also contributed to the Portfolio's
performance, as these issues were purchased at extremely attractive yields, due
in part to their newness and perceived credit complexity. Spreads tightened
promptly as market participants later identified their inherent value,
particularly as good quality, higher yielding paper remained in demand. Also,
the Portfolio's holdings of Owens Illinois 11s and Stone Consolidated 10 1/4s,
purchased at spreads of 250 basis points over Treasuries, were tendered during
the second quarter at 50 basis points over Treasuries, resulting in handsome
gains.
Looking ahead, we remain optimistic regarding on the bond market over the long
term. Though our strategy is not top down driven, we believe a short run risk
to the bond market entails additional proactive tightening by the Fed before
year-end to slow continued strong demand growth in the economy to a non-
inflationary pace. Therefore, we are likely to maintain a slightly shorter
duration versus the Index, and be inclined to sell Treasuries to selectively
add to late cyclical corporate credits (paper, media, cable) which have
performed well during the latter stages of an economic cycle.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Sovereign Bond Lehman Brothers Govt./Corp.
Portfolio Bond Index
<S> <C> <C>
6/30/87 10,079.32 10,000
6/30/88 10,872.32 10,748
6/30/89 12,136.74 12,076
6/30/90 12,884.50 12,935
6/30/91 14,287.32 14,257
6/30/92 16,243.05 16,278
6/30/93 18,264.21 18,419
6/30/94 18,178.88 18,150
6/30/95 20,629.37 20,467
6/30/96 21,651.41 21,420
6/30/97 23,705.56 23,080
</TABLE>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
Investments % of investments
<S> <C> <C>
U.S. Treasury 19.8% 17.4%
Government National 2.5% 2.8%
Mortgage Assoc.
UCFC Home Equity Loan 2.2% 1.6%
Federal Home Loan 2.2% 2.1%
Mortgage Corp.
Hydro-Quebec 1.9% 1.8%
American Express Credit Corp. 1.9% 1.8%
Commercial Credit Group, Inc. 1.8% 1.7%
Texaco Capital, Inc. 1.7% 1.6%
Michigan Consolidated Gas Co. 1.5% 1.4%
Texas New Mexico Power co. 1.2% 1.5%
</TABLE>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Sovereign Bond Lehman Brothers Govt./ MorningStar
Portfolio Corp. Bond Index Peer Group+
-------------- ---------------------- -----------
<S> <C> <C> <C>
Year to Date** 3.62% 2.74% 2.54%
1 Year 9.49% 7.75% 8.59%
5 Years 7.85% 7.23% 6.61%
10 Years 8.93% 8.72% 6.50%
</TABLE>
Portfolio Composition (as of June 30, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Quality Duration
- -------------- --------
<S> <C> <C> <C>
Treasury/Agency 24.0% (Less than) 1 Year 12.0%
AAA 18.2% 1-4 Years 32.5%
AA 10.0% 4-8 Years 33.3%
A 18.0% (Greater than) 8 Years 22.2%
Baa 12.4%
Other 17.4%
</TABLE>
* Total returns are for the period ending June 30, 1997, returns represent past
performance, assume reinvestment of all distributions, and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
4
<PAGE>
INCEPTION: MAY 1, 1996
STRATEGIC BOND PORTFOLIO J.P. MORGAN INVESTMENT MANAGEMENT, INC. CHRIS
DURBIN & LILI DUNG
During the first half of 1997, the Portfolio was slightly underweight U.S.
relative to the foreign markets due mainly to the outlook for U.S. interest
rates. Although inflation in the U.S. remains well contained, we believe
underlying economic strength may start upward inflationary pressure.
Year-to-date, the Portfolio slightly lagged the index net of fees. Within the
domestic portion, our investment philosophy of underweighting Treasuries to
invest in the yield-advantaged corporates and mortgages as well as high yield
and emerging markets securities contributed positively to performance. The
Portfolio maintained a weighting close to the maximum exposure (10%) to high
yield and emerging markets.
Within the North American bloc, the short position in the U.S. was mostly
offset by long positions in Canada and Australia. This positively impacted the
Portfolio as these markets outperformed the U.S. during the first half of the
year. Within Europe, the Portfolio favored the higher yielding markets of
Sweden and the U.K. Within Japan, the Portfolio maintained an underweight
position--which detracted from the Portfolio in the first quarter as Japan was
the best performing major bond market and contributed in the second quarter as
Japan shifted to be the worst performer.
Looking forward, we expect to maintain a short position in the U.S., given the
current level of interest rates and expectations for stronger growth. We
continue to favor Canada but will watch this position carefully as the Bank of
Canada has moved to a tightening stance. Within Europe, we continue to favor
the higher-yielding markets and the U.K., as this country is more likely to
meet all of the Maastricht economic criteria than Germany. Within Japan, we
will continue to remain close to neutral as we do not anticipate a rise in
official rates until we see stronger monetary conditions.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
Strategic Bond Strategic Bond
Composite Index (A) Portfolio
<S> <C> <C>
May 1996 10,002 9,983.20
Jun 1996 10,123 10,068.31
Jul 1996 10,162 10,102.86
Aug 1996 10,183 10,111.98
Sep 1996 10,370 10,297.03
Oct 1996 10,586 10,489.94
Nov 1996 10,775 10,674.48
Dec 1996 10,703 10,671.49
Jan 1997 10,762 10,722.54
Feb 1997 10,799 10,754.51
Mar 1997 10,695 10,634.45
Apr 1997 10,844 10,760.52
May 1997 10,936 10,870.77
Jun 1997 11,080 11,020.78
</TABLE>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
$10,000
Investment made 5/1/96 % of six months ago
(Portfolio Inception Date) investments % of investments
<S> <C> <C>
Government National
Mortgage Assoc. 11.1% 15.1%
Federal National Mortgage
Assoc. 10.8% 7.6%
U.K. Treasury 8.6% 2.7%
Cs First Boston Mortgage
Security Corp. 4.2% N/A
Countrywide Home Loans 3.7% N/A
Government of Japan 3.7% 2.0%
Republic of Italy 3.4% 6.1%
Midland Bank plc 3.1% 4.1%
National Rural Utilities 3.1% 4.1%
Nationwide Financial Services, Inc. 3.0% N/A
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Strategic Bond Strategic Bond MorningStar
Portfolio Composite Index (A) Peer Group+
-------------- ------------------- -----------
<S> <C> <C> <C>
Year to Date** 3.27% 3.52% 1.81%
1 Year 9.46% 9.45% 8.27%
Since Inception 8.68% 9.19% N/A
</TABLE>
<TABLE>
<CAPTION>
Portfolio Composition (as of June 30, 1997)
- --------------------------------------------------------------------------------
Credit Quality Duration
- -------------- --------
<S> <C> <C> <C>
Treasury/Agency 23.3% Less than 1 Year 12.9%
AAA 33.0% 1-3 Years 14.6%
AA 12.6% 3-5 Years 33.3%
A 10.2% 5-10 Years 35.7%
BBB 4.3% Greater than 10 Years 3.5%
Other 16.6%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. There are special risks associated with
international investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus.
The performance of the portfolio on this page is reported net of Trust level
changes (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
(A) Strategic Bond Composite Index: 75% Lehman Brothers Aggregate Bond and 25%
J.P. Morgan Non-US Government Bond Index, Hedged.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
5
<PAGE>
INCEPTION: MARCH 29, 1986
MANAGED PORTFOLIO INDEPENDENCE INVESTMENT ASSOCIATES, INC. JOHN FORCELLI &
TOM SPENCER
Overall, the equity portion of the Portfolio generated about an 18.2% (gross
return) for the first half of 1997. The fixed income portion increased about
2.6% (gross return) for the first half of 1997 which was in line with the
benchmark fixed income portfolio. Net performance on the overall Managed
Portfolio year-to-date is 8.90%, underperforming the benchmark.
In 1997, the market rallied as investors realized that the economy was not
overheating and the Federal Reserve was not likely to raise short term rates
any time soon. Within the equity portfolio, healthcare stocks were among the
best performing sectors in the portfolio with stocks such as Warner Lambert,
HealthSouth and Johnson & Johnson performing particularly well. Financial
stocks such as March & McLennan, Bank America and Cigna also did well. Selected
technology stocks such as Computer Associates and Compaq Computer were also
strong performers. The fixed income market appears ready to continue to rally
over the coming months based on the benign inflation outlook. The bond portion
of the Portfolio has an overweighting in corporates and mortgages. The quality
of the fixed income securities is high with an overweighting in three to ten
year maturities.
We continue to believe that the economy in the U.S. will grow moderately for
the balance of 1997 and into 1998. However, we continue to believe that the
financial markets will remain volatile during the next six to twelve months and
we believe that portfolio risk control in a slowing economy is of the utmost
importance.
Historical Portfolio Return
<TABLE>
<CAPTION>
[GRAPH APPEARS HERE]
$10,000
Investment made 6/30/87 Managed Composite Managed
(10-Year Period) Index . Portfolio
<S> <C> <C>
6/30/87 10,000 10,038.45
6/30/88 10,125 10,285.67
6/30/89 11,794 12,029.45
6/30/90 13,198 13,128.69
6/30/91 14,396 14,539.31
6/30/92 16,411 16,577.64
6/30/93 18,617 18,657.33
6/30/94 18,611 18,867.01
6/30/95 22,201 21,939.74
6/30/96 25,520 25,241.59
</TABLE>
Value on 6/30/97:
- -----------------
$29,368 Managed Portfolio
$30,798 Managed Composite Index .
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Treasury 17.7% 20.8%
Federal National
Mortgage Assoc. 3.2% 4.4%
Government National
Mortgage Assoc. 2.8% 3.0%
Philip Morris Cos. Inc. 2.1% 1.5%
General Electric Co. 1.8% 1.4%
Bankamerica Corp. 1.5% 1.6%
IBM Corp. 1.3% 1.6%
Wells Fargo Capital I 1.3% N/A
Merck & Co., Inc. 1.2% 0.8%
Hilton Hotels Corp. 1.1% 0.1%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Managed Managed Composite MorningStar
Portfolio Index . Peer Group+
--------- ----------------- -----------
<S> <C> <C> <C>
Year to Date** 8.90% 11.40% 11.47%
1 Year 16.35% 20.68% 21.78%
5 Years 12.12% 13.42% 11.41%
10 Years 11.33% 11.91% 8.32%
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Governmental 17.7% 20.8%
Financial Services 10.7% 7.8%
Banks and Finance 10.1% 8.8%
Health Products and Services 7.4% 5.6%
Government Agencies 5.9% 7.9%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
** Total Returns for a period less than a year are not annualized.
. Managed Composite Index: 50% S&P 500 and 50% Lehman Brothers Govt./Corp. Bond
Index.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
6
<PAGE>
INCEPTION: MARCH 29, 1986
GROWTH & INCOME PORTFOLIOINDEPENDENCE INVESTMENT ASSOCIATES, INC. PAUL F.
MCMANUS
The stock market resumed its powerful advance on the second quarter with a
total return of 17.4%, delivering a first half gain of 20.5%. We have been in
an ideal environment for stocks as the economy is growing steadily, inflation
and interest rates are stable and companies are increasingly focused on
shareholder value. The stock market returns over the past three years have been
extraordinary, as the annualized return has been close to 30%. Given the
narrow, concentrated advance by large capitalization stocks, the average
manager is well behind the market.
During the last three months, the "mega-cap" stocks continued to outperform so
that for the first half of 1997 these 50 largest stocks within the S&P 500
returned 23.7% while the remaining 450 returned only 17.0%. Because these
issues are trading at such relatively high P/E multiples, our valuation model,
which focuses on owning stocks which are undervalued, has not found them
attractive. This phenomenon, although cyclical, could persist. But, ultimately,
we know that proper valuation forces will come back into play.
At the end of June, the Portfolio owned 116 stocks and was fully invested with
a cash position of 2.0%. The Portfolio maintains market-like risk
characteristics and conforms to the benchmark guidelines specific to your
Portfolio. The best performers in the Portfolio were Warner Lambert, Home
Depot, and Marsh McLennan. Laggards included GTE as the telecommunications
industry is going through deregulation and Electronic Data Systems, which had
some disappointing earnings results. The Portfolio's P/E is well below the S&P
500's 20.6x multiple, another indicator that there are many attractively-valued
stocks outside of the current market favorites. We would, as a matter of
course, expect a 5-10% correction anytime, but if the current environment
persists, financial market returns still look attractive.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 6/30/87
(10-Year Period) S&P 500 Index Growth & Income Portfolio
<S> <C> <C>
6/30/1987 10,000 10,027.45
6/30/1988 9,310 9,552.40
6/30/1989 11,221 11,598.02
6/30/1990 13,061 13,545.27
6/30/1991 14,026 15,090.02
6/30/1992 15,915 17,053.75
6/30/1993 18,077 19,567.77
6/30/1994 18,319 20,064.59
6/30/1995 23,087 24,419.73
6/30/1996 29,101 30,448.30
6/30/1997 39,164 38,960.46
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of investments
<S> <C> <C>
General Electric Co. 3.8% 3.3%
Bankamerica Corp. 3.1% 1.0%
Microsoft Corp. 2.8% 0.8%
Merck & Co., Inc. 2.6% 1.9%
E.I. Du Pont De Nemours & Co. 2.3% 1.8%
Hewlett-Packard Co. 2.2% 1.1%
Johnson & Johnson 2.2% 2.0%
Home Depot, Inc. 2.2% 1.4%
Intel Corp. 2.0% 2.1%
United Technologies Corp. 2.0% 1.8%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Growth & Income S&P 500 MorningStar
Portfolio Index Peer Group+
--------------- ------- -----------
<S> <C> <C> <C>
Year to Date** 16.74% 20.50% 16.61%
1 Year 27.96% 34.58% 29.62%
5 Years 17.97% 19.73% 14.38%
10 Years 14.54% 14.63% 9.32%
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 13.1% 11.0%
Banks and Finance 9.7% 4.8%
Oils & Natural Gas Exploration
& Production 8.1% 10.5%
Diversified Operations 7.1% 3.0%
Insurance 6.8% 6.0%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
7
<PAGE>
INCEPTION: MAY 1, 1996
LARGE CAP VALUE PORTFOLIO T. ROWE PRICE ASSOCIATES, INC. BRIAN ROGERS
What's a conservative value oriented fund to do in a market environment like
the first half of 1997? Our strategy has been to focus on risk more than usual.
We reduced our investments in a number of companies which have performed well
and which, consequently, no longer appear as undervalued as they once did.
Several of our larger sales represent investments in some of the world's great
companies (Warner Lambert, Honeywell, General Electric). When the market fully
values a company's equity, however, our valuation discipline prompts us to
recycle these holdings into more reasonably valued companies with attractive
upside potential and relative low downside risk.
In looking at large purchases, these companies share the characteristics of
attractive relative valuations, high relative dividend yields, and in our
opinion good upside potential and moderate downside risk. We added to positions
in fine companies such as Dow Chemical, Knight-Ridder, GM and Duke Energy.
Coming into 1997 we began to see a delinkage occurring, as stock prices have
surged at a much faster rate than have corporate earnings and dividends. This
delinkage is even more true today after the market's strong advance. We will
continue to follow our conservative investment approach because there are
always interesting investment opportunities in any market environment. From an
expectations standpoint, however, we believe that the going is likely to get
tougher sometime between now and the end of the year.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96
(Portfolio Inception Date) Russell 1000 Value Index Large Cap Value Portfolio
<S> <C> <C>
May 1996 10,000 10,000
May 1996 10,125 10,190.10
Jun 1996 10,133 10,255.44
Jul 1996 9,750 9,976.73
Aug 1996 10,029 10,186.40
Sep 1996 10,428 10,618.31
Oct 1996 10,831 10,859.97
Nov 1996 11,616 11,451.49
Dec 1996 11,468 11,390.49
Jan 1997 12,024 11,698.63
Feb 1997 12,201 11,978.55
Mar 1997 11,762 11,723.70
Apr 1997 12,256 12,015.78
May 1997 12,941 12,581.98
Jun 1997 13,496 13,059.33
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Mellon Bank Corp. 1.8% 1.7%
U.S. Treasury 1.8% 2.8%
Dow Chemical Co. 1.8% 1.1%
Atlantic Richfield Co. 1.7% 1.6%
Exxon Corp. 1.5% 1.6%
General Electric Co. 1.5% 1.8%
Chase Manhattan Corp. 1.3% 1.5%
International Flavors &
Fragrances, Inc. 1.3% 1.5%
E.I. Du Pont De Nemours & Co. 1.3% 1.1%
Texaco, Inc. 1.3% 1.3%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Large Cap Russell 1000 MorningStar
Value Portfolio Value Index Peer Group+
--------------- ------------ -----------
<S> <C> <C> <C>
Year to Date** 14.65% 17.68% 14.27%
1 Year 27.34% 33.18% 27.88%
Since Inception 25.70% 29.30% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Banks and Finance 10.7% 9.7%
Oils and Natural Gas Exploration
and Production 9.1% 10.0%
Utilities - Electric 7.7% 6.9%
Utilities - Telecommunications 7.6% 6.7%
Chemicals 7.5% 5.9%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
8
<PAGE>
INCEPTION: MARCH 29, 1986
LARGE CAP GROWTH PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. MICHAEL G. TROTSKY
The Large Cap Growth Portfolio closely resembles the Frank Russell 1000 Growth
Index benchmark in terms of expected returns, risk, and volatility of returns.
The Large Cap Growth Portfolio slightly underperformed its benchmark for the
second quarter. For the year, the Large Cap Growth Portfolio has returned
17.99% versus the FR 1000 Growth Index return of 19.55%.
The best performing stocks for the quarter included technology issues such as
Microsoft, Computer Associates, Compaq, and Dell Computer; healthcare stocks
like Warner-Lambert, Merck, and Schering Plough; and classic large cap growth
stocks like General Electric and Home Depot. Major holdings going forward
include Microsoft, Intel, Johnson & Johnson, Merck, and General Electric. All
of these companies are currently exhibiting "cheapness and improving
fundamentals".
Simply put, the United States is in a state of economic nirvana. Consumer
confidence is at a 28-year high, unemployment is at a 23-year low, and
inflation is at a 32-year low with no cost pressures on the horizon. Despite
the first quarter's scorching 5.9% GDP growth, the Federal Reserve Board
declined to raise interest rates at both its May 20th and July 2nd policy
meetings. Recent economic data (particularly weak retail sales and a buildup in
inventories) indicate that second quarter economic growth slowed to
approximately 2%. We believe that the economy will reaccelerate moderately
during the remainder of 1997 as many of the driving forces behind its advance
remain in place: an optimistic consumer, strong industrial output and capacity
growth, increases in productivity, dormant inflation, and consistent economic
and monetary policy. Financial markets should remain volatile during the next
six to twelve months making portfolio risk control of the utmost importance.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 6/30/87 Large Cap Growth Large Cap Growth
(10-Year Period) Benchmark (1) Portfolio
<S> <C> <C>
6/30/87 10,000 10,023.70
6/30/88 9,310 9,367.99
6/30/89 11,223 11,446.73
6/30/90 13,074 13,551.59
6/30/91 14,041 15,797.94
6/30/92 15,924 17,477.85
6/30/93 18,094 20,246.63
6/30/94 18,349 20,892.78
6/30/95 23,132 24,915.55
6/30/96 29,335 30,650.01
6/30/97 38,525 29,122.45
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
General Electric Co. 5.3% 2.5%
Merck & Co., Inc. 4.7% 2.7%
Microsoft Corp. 3.7% 2.6%
Intel Corp. 3.4% 4.3%
Johnson & Johnson 3.4% 3.3%
Home Depot, Inc. 2.6% 2.3%
Abbott Laboratories 2.3% 2.2%
General Mills, Inc. 2.3% N/A
United Technologies Corp. 2.2% 2.6%
Compaq Computer Corp. 1.7% 3.0%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Large Cap Large Cap Growth MorningStar
Growth Portfolio Benchmark (1) Peer Group+
---------------- --------------- -----------
<S> <C> <C> <C>
Year to Date** 17.49% 19.55% 12.16%
1 Year 27.64% 31.33% 19.24%
5 Years 17.49% 19.33% 15.21%
10 Years 14.59% 14.44% 9.64%
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 22.3% 19.8%
Computer Software and Services 9.1% 6.5%
Diversified Operations 7.9% 2.3%
Retail 7.3% 10.9%
Computers & Office Equipment 7.1% 2.5%
</TABLE>
(1) The index is represented by the S&P 500 for the period April 1986 to
April 1996 and the Russell Large Cap Growth Index for the period May 1996
to June 30, 1997.
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It
does not reflect expense and charges of the applicable separate accounts
and variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
9
<PAGE>
Mid Cap Value INCEPTION: MAY 1, 1996
NEUBERGER & BERMAN, LLC M. Kassen & R. Gendelman
On May 1, 1997 State Street Global Advisors began managing the Equity Index
Portfolio. The performance for the period May 1, 1997 through June 30, 1997 was
10.61% vs. the S&P 500 Index return of 10.84%. The variance can primarily be
attributed to the initial transition period where the Portfolio's composition
changed to a fully replicated portfolio that includes all 500 stocks in the S&P
500 Index.
The S&P 500 continued to provide exceptional returns in the first half of
1997. The index provided a total return of 20.50% for the six month period
ending June 30--outperforming all of the other major market indices in the
first half of 1997. The first half S&P 500 return follows the 1996 return of
22.96% and 1995's incredible 37.58%. Investors tracking the S&P 500 have more
than doubled their money in the last 30 months.
There have been tremendous net inflows to stock funds this year. Index funds
have been a big recipient of those inflows because of their current popularity
with investors. The phenomenal returns of the S&P 500 have made it difficult
for active managers to outperform the index over the last 30 months.
The mega-capitalization stocks, such as General Electric, Coca Cola, Exxon and
Microsoft are dominating the S&P 500. The ten largest companies in the S&P now
compose nearly 20% on the index. The twenty largest names compose almost 30% of
the index.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96
(Portfolio Inception Date) S&P 500 Index Equity Index Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C>
MAY 1996 10,000 10,000.00
May 1996 10,258 10,210.21
Jun 1996 10,300 10,231.27
Jul 1996 9,842 9,825.37
Aug 1996 10,050 9,970.93
Sep 1996 10,615 10,509.35
Oct 1996 10,906 10,787.24
Nov 1996 11,734 11,561.33
Dec 1996 11,504 11,423.37
Jan 1997 12,218 12,132.53
Feb 12,317 12,220.87
Mar 11,805 11,735.83
Apr 12,510 12,408.96
May 13,278 13,119.43
Jun 13,862 13,727.15
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
General Electric Co. 3.2% 2.7%
Coca-Cola Co. 2.5% 2.3%
Exxon Corp. 2.3% 2.1%
Microsoft Corp. 2.2% 1.7%
Merck & Co., Inc. 1.8% 1.6%
Intel Corp. 1.7% 1.8%
Royal Dutch Petroleum Co. 1.7% 1.5%
Philip Morris Cos., Inc. 1.6% 1.4%
Procter & Gamble Co. 1.4% 1.2%
IBM Corp. 1.3% 1.3%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Equity Index S&P 500 MorningStar
Portfolio Index Peer Group+
------------ ------- -----------
<S> <C> <C> <C>
Year to Date(1) 20.17% 20.50% 16.61%
1 Year 34.17% 34.58% 29.62%
Since Inception 31.18% 33.20% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 11.6% 9.8%
Food, Beverage and Tobacco 8.0% 7.5%
Banks and Finance 7.6% 7.0%
Oils and Natural Gas Exploration
and Production 6.8% 8.6%
Diversified Operations 6.4% 2.9%
</TABLE>
(1) The net return without the capital contribution would have been 19.95%.
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
. "Standard & Poor's 500" is a trademark of The McGraw-Hill Companies, Inc.
and has been licensed for use by John Hancock Mutual Life Insurance Company.
The product is not sponsored, endorsed, sold or promoted by Standard &
Poor's and Standard & Poor's makes no representation regarding the
advisability of investing in the product.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
10
<PAGE>
INCEPTION: MAY 16, 1988
REAL ESTATE EQUITY PORTFOLIO INDEPENDENCE INVESTMENT ASSOCIATES, INC. DALTON
AVERY
The strong performance that REITs showed in 1996 had two negative effects on
their performance in the first half of '97. First, valuations of REITs were
high relative to their historical averages which caused some correction in the
stocks. Second, higher prices for REIT stocks encouraged heavy new equity
issuance. In the first half REITs raised $12 billion in new equity or more than
20% of all equity capital raised by U.S. stocks in the period. This more than
offset the flow of new money into REIT funds in the same period and further
reduced demand for other REIT stocks.
Some improvement occurred in June as REITs outperformed the broader stock
averages for the first time in '97. The performance of REITs in the first half
is not unlike their performance in first half '96. Valuation levels are again
attractive as average REIT earnings have increased 9-10%. The positive total
return for REITs in the first half was entirely supported by the 6% average
yield.
In the first half the best performing REIT property sectors were manufactured
home communities, community shopping centers and hotels. The weakest sectors
were office property REITs and industrial properties (warehouse and
distribution). The office and industrial sectors were the strongest performers
at the end of 1996 so a correction was not unexpected. This sector also saw a
disproportionate amount of new equity issuance. These sectors also showed the
strongest earnings gains in the period so valuations are again reasonable.
The Real Estate Equity Portfolio outperformed its benchmark in the second
quarter although the Portfolio did slightly trail the benchmark for the full
first half by 100 basis points. The trend against the benchmark has been
favorable for three months and we believe that the Portfolio is well structured
to take advantage of an improved second half performance for the REIT group.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/16/88 Wilshire Real Real Estate
(Portfolio Inception Date) Estate Index Equity Portfolio
<S> <C> <C>
6/30/1988 10,452 10,063.70
6/30/1989 11,770 11,253.57
6/30/1990 10,423 10,577.41
6/30/1991 9,041 11,078.89
6/30/1992 8,763 11,994.20
6/30/1993 10,962 15,654.23
6/30/1994 11,465 16,626.05
6/30/1995 11,797 17,093.61
6/30/1996 13,974 19,857.33
6/30/1997 18,662 26,108.97
</TABLE>
<TABLE>
<CAPTION>
Top ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Patriot American Hospitality, Inc. 3.8% 3.2%
Equity Residential
Properties Trust 3.6% 1.4%
Host Marriott Corp. 3.3% 3.6%
United Dominion Realty
Trust, Inc. 3.4% 2.2%
BRE Properties, Inc. 3.1% 2.5%
Liberty Property Trust 2.9% 3.1%
Simon Debartolo Group, Inc. 2.9% 3.2%
Storage USA, Inc. 2.8% 2.6%
Security Capital Pacific Trust 2.7% 2.1%
Chateau Communities, Inc. 2.6% N/A
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Real Estate Wilshire Real
Equity Portfolio Estate Index
---------------- -------------
<S> <C> <C>
Year to Date** 5.62% 6.52%
1 Year 31.48% 33.55%
5 Years 16.83% 16.32%
Since Inception 11.09% 7.20%
</TABLE>
<TABLE>
<CAPTION>
Top Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Real Estate Investment Trust 91.9% 87.4%
Real Estate Development 4.8% 5.5%
Lodging and Restaurants 3.3% 3.8%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original costs. Sector investing entails special risks
as discussed in the prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
11
<PAGE>
MID CAP VALUE INCEPTION: MAY 1, 1996
NEUBERGER & BERMAN, LLC M. KASSEN & R. GENDELMAN
The second quarter displayed the strongest performance by the broad market
averages in over a decade, paced by large-capitalization stocks. Strong
corporate earnings reports and a benign inflation outlook captivated investors,
who generally ignored valuation levels that we believe are stretched. In this
environment, the Mid Cap Value Portfolio continued to outperform its benchmark
(net of fees) with a return of 13.05% vs. the Russell Mid Cap value index
12.60% return.
Since the beginning of the year, the Portfolio has added over 145 basis points
net of fees and expenses versus the Russell Mid Cap Value Index. Year-to-date
the Mid Cap Portfolio's rate of return, net of fees, and expenses is 15.54%
which outpaced the Russell Mid Cap Value Index return of 14.51%.
Although it is harder to find values in 1997's heady environment, we believe
that the amazing strength of large-cap stocks relative to the rest of the
market has made the mid-cap world a relatively attractive sector to prospect
for new ideas. We hope to take advantage of market turbulence to enhance the
quality and potential of our Portfolio.
It is our belief that, over time, other investors will come to acknowledge the
worth of the undervalued securities we purchased, causing these securities to
appreciate. But even if this does not occur, we feel that the Portfolio's
downside risk will be reduced because the underlying companies were carefully
selected and the securities were bought at discounted price levels.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96 Russell Mid Cap Mid Cap Value
(Portfolio Inception Date) Value Index Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C>
May 1996 10,000 10,000.00
May 1996 10,096 10,248.80
Jun 1996 10,106 10,094.61
Jul 1996 9,625 9,571.52
Aug 1996 10,029 10,034.57
Sep 1996 10,397 10,516.00
Oct 1996 10,671 10,707.74
Nov 1996 11,341 11,615.98
Dec 1996 11,294 11,617.97
Jan 1997 11,648 12,270.48
Feb 11,846 12,226.93
Mar 11,486 11,872.06
April 11,775 12,210.52
May 12,470 13,280.97
Jun 12,933 13,422.96
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Host Marriott Corp. 3.0% 1.1%
Exel, Ltd. 2.9% 1.8%
Mirage Resorts, Inc. 2.8% 1.7%
Comcast Corp. 2.7% 1.9%
Union Pacific Resources
Group, Inc. 2.7% 1.4%
Harcourt General, Inc. 2.5% 1.5%
Analog Devices, Inc. 2.4% N/A
Continental Airlines, Inc. 2.2% 1.0%
Knight-Ridder, Inc. 2.1% 1.9%
Raychem Corp. 2.0% N/A
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Mid Cap Russell Mid Cap MorningStar
Value Portfolio Value Index Peer Group+
--------------- --------------- -----------
<S> <C> <C> <C>
Year to Date** 15.54% 14.51% 13.85%
1 Year 32.97% 27.97% 28.56%
Since Inception 28.69% 24.65% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Electronic Products 9.5% 7.8%
Media 9.0% 7.9%
Oils and Natural Gas Exploration
and Production 7.4% 5.9%
Chemicals 6.8% 4.2%
Lodging and Restaurants 6.6% 4.3%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
12
<PAGE>
INCEPTION: MAY 1, 1996
MID CAP GROWTHJANUS CAPITAL CORPORATION JIM GOFF
After a solid performance in 1996, equities built on their previous gains and
quickly climbed to new records. However, fear of an overheated economy along
with a Federal Reserve rate increase combined to stir up stocks late in the
first quarter, and volatility reemerged. Following the market's rebound late
in April, large stocks proceeded quickly to new records, while the small- and
mid-sized indices struggled to regain records set in January. The month of May
saw a reversal in investor focus, and small- and mid-sized stocks outperformed
their larger counterparts by a wide margin. In June, however, large caps once
again reasserted themselves.
During the period, I remained true to my investment discipline, and my
patience began to pay off. We had a number of stocks that gained over 35%,
including Fastenal, Papa John's, Premier Parks, Omnicare, and the Apollo
Group. The fundamentals of these companies did not change during the period.
Rather, the turnaround in market psychology once again rewarded companies with
solid fundamentals and rapid earnings growth.
Our research efforts continued to generate new investment ideas, and we added
positions in the media industry during the quarter, including: Clear Channel
Communication, Evergreen Media, Outdoor Systems, Heftel Advertising, and
Univision. All five companies operate in highly defined market segments,
ranging from television and radio broadcasting to outdoor advertising. Each
has a strong management team that is growing their respective businesses both
internally and through acquisition. Additionally, all five are generating
strong cash flows while operating in areas that have low capital needs.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96 Russell Mid Mid Cap
(Portfolio Inception Date) Cap Growth Index Growth Portfolio
<S> <C> <C>
May 1996 10,000 10,000
May 1996 10,204 10,251.79
Jun 1996 9,896 10,020.18
Jul 1996 9,128 9,186.41
Aug 1996 9,621 9,881.14
Sep 1996 10,232 10,473.40
Oct 1996 10,112 10,325.04
Nov 1996 10,708 10,408.08
Dec 1996 10,528 10,268.97
Jan 1997 10,993 9,993.70
Feb 10,751 9,826.76
Mar 10,144 9,079.40
April 10,392 9,186.08
May 11,323 10,176.45
Jun 11,637 10,693.34
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Fastenal Co. 8.3% 6.5%
J.D. Wetherspoon plc 5.3% 4.5%
Petco Animal Supplies, Inc. 5.1% 3.0%
Pizzaexpress plc 5.1% 5.1%
Papa John's International, Inc. 4.4% 3.0%
Sofamor Danek Group, Inc. 4.2% N/A
HFS, Inc. 4.0% 4.4%
Omnicare, Inc. 3.5% 1.3%
Clear Channel
Communications, Inc. 3.1% N/A
Wisconsin Central
Transportation Corp. 2.7% 3.2%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Mid Cap Russell Mid Cap MorningStar
Growth Portfolio Growth Index Peer Group+
---------------- --------------- -----------
<S> <C> <C> <C>
Year to Date** 4.13% 10.54% 7.45%
1 Year 6.72% 17.59% 11.29%
Since Inception 5.91% 13.67% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Retail 19.2% 21.5%
Foreign 12.9% 11.7%
Health Products and Services 9.2% 3.9%
Lodging and Restaurants 8.7% 10.9%
Media 6.8% 3.1%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
13
<PAGE>
INCEPTION: MAY 1, 1994
SPECIAL OPPORTUNITIES PORTFOLIO
JOHN HANCOCK ADVISERS, INC. MANAGEMENT TEAM
For the six months ended June 30, 1997, Special Opportunities returned (6.21)%
versus a 10.54% return for the Russell Mid Cap Growth Index.
During the second quarter we made significant progress towards positioning the
Portfolio to benefit from our top-down analysis. The underpinning driving our
long-term macroeconomic views is strong economic growth continuing to fuel
corporate profits, within a low inflation, low interest rate environment. We
have overweighted sectors which will benefit most from these trends.
We took advantage of the April sell off in Financial stocks to build a
position in several quality insurance and banking companies which will benefit
from the low interest rate environment, the strong economy, and the industry-
wide consolidation trend. Capital goods companies will also benefit from the
strong economy. By focusing their capital resources on profitable segments,
they have transformed themselves into secular growth companies.
Our economic outlook has moved us away from those sectors which will
underperform under these conditions. Since precious metals commodity prices
perform poorly in low inflation environments, prospects for these companies
turned bleak. Even with heavy investments in new mining technologies, our
holdings would not be able to withstand low commodity prices without a negative
effect on their bottom lines.
A similar scenario exists for energy companies. Weaker oil prices led to poor
prospects for exploration and production companies. Therefore, we moved from
these companies to the oil service providers, which are less susceptible to
lower commodity prices.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/94 Russell Mid Cap Special Opportunities
(Portfolio Inception Date) Growth Index Portfolio
<S> <C> <C>
5/1/94 10,015 10,019.50
6/30/95 12,116 11,652.14
6/30/96 14,975 16,237.46
6/30/97 17,609 16,713.17
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Charter One Financial, Inc. 2.8% N/A
Allied Signal, Inc. 2.7% N/A
Honeywell, Inc. 2.7% N/A
Conagra, Inc. 2.6% N/A
EVI, Inc. 2.6% N/A
Smithfield Foods, Inc. 2.4% 0.3%
CVS Corp. 2.4% N/A
Banc One Corp. 2.3% N/A
Travelers Property
Casualty Corp. 2.3% N/A
Elan Corp. plc 2.3% N/A
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Special Opportunities Russell Mid Cap MorningStar
Portfolio Growth Index Peer Group+
--------------------- --------------- -----------
<S> <C> <C> <C>
Year to Date** -6.21% 10.54% 7.45%
1 Year 2.93% 17.59% 11.29%
3 Years 18.48% 22.48% 19.30%
Since Inception 17.69% 18.93% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 12.6% 0.4%
Banks and Finance 12.4% N/A
Insurance 10.8% 2.8%
Food, Beverage and Tobacco 8.8% 2.7%
Oils and Natural Gas Equipment
and Services 7.8% 24.5%
</TABLE>
* Total returns are for the period ending June 30, 1997, returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate that shares, when redeemed, may be worth more
or less than their original cost. Sector investing entail special risks as
discussed in the prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
The Special Opportunities Portfolio may not be available with all products.
There are special risks associated with sector investing and investing in
small cap stocks. Please refer to the prospectus for additional information.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
14
<PAGE>
INCEPTION: MAY 1, 1996
SMALL CAP VALUE PORTFOLIO INVESCO MANAGEMENT & RESEARCH STEVE KASZYNSKI &
BOB SLOTPOLE
The John Hancock Small Cap Value Portfolio advanced 18.3% for the second
quarter. This compares favorably to the 16.2% rise of the Russell 2000 Small
Cap Index. The results were particularly impressive considering our 15%
underweight in technology which was the best performing sector for the
quarter. The good relative return for the quarter was largely attributable to
our stock selection criteria, which favors higher quality companies with
reasonable valuations versus their peers. The portfolio is extremely well
diversified and its sector weights are controlled to prevent overweights in
sectors where valuations are getting ahead of themselves. The spectacular rise
of technology stocks in recent years is a good example of this. Over time,
small stock investors have been drawn to technology as a moth to a flame,
irrespective of the extreme valuations in this market sector.
Our search for value takes place in all corners of the small company universe
and includes holdings like Lands' End, Inc., Dexter Corporation and Zeigler
Coal Holding Company. These are solid companies with good franchises, but are
rarely targeted by investors chasing high growth.
We are content to own companies in which management owns a significant stake,
the use of debt reflects the riskiness of the business, and where management
has a clearly articulated business strategy. In this way, we hope to deliver
consistency as well as the above average returns that smaller companies have
historically generated.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96
(Portfolio Inception Date) Russell 2000 Index Small Cap Value Portfolio
<S> <C> <C>
May 1996 10,000 10,000.00
May 1996 10,394 10,231.73
Jun 1996 9,967 10,126.04
Jul 1996 9,097 9,630.09
Aug 1996 9,625 10,161.38
Sep 1996 10,001 10,449.97
Oct 1996 9,847 10,340.15
Nov 1996 10,253 10,678.01
Dec 1996 10,521 11,033.49
Jan 1997 10,732 11,114.52
Feb 10,471 10,927.45
Mar 9,977 10,594.17
Apr 10,005 10,831.29
May 11,118 11,818.21
Jun 11,595 12,512.51
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Cablevision Systems Corp. 1.5% N/A
NAC Re Corp. 1.4% 0.5%
Adolph Coors Co. 1.4% 1.1%
Technitrol, Inc. 1.3% N/A
Imperial Bancorp 1.3% N/A
Centex Corp. 1.3% 1.1%
Integrated Health Services, Inc. 1.3% 0.7%
Land's End, Inc. 1.2% N/A
Perrigo Co. 1.2% N/A
Cullen/Frost Bankers, Inc. 1.2% 0.8%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Small Cap Russell 2000 MorningStar
Value Portfolio Index Peer Group+
--------------- ------------ -----------
<S> <C> <C> <C>
Year to Date** 13.40% 10.20% 13.40%
1 Year 23.57% 16.33% 24.03%
Since Inception 21.17% 13.52% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 10.9% 8.2%
Banks and Finance 8.6% 6.9%
Insurance 8.6% 4.7%
Retail 5.4% 4.2%
Electronic Products 5.4% 4.4%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
15
<PAGE>
SMALL CAP GROWTH PORTFOLIO INCEPTION: MAY 1, 1996
JOHN HANCOCK ADVISERS, INC. BERNICE BEHAR
For the six months ended June 30, 1997, Small Cap Growth Portfolio returned
5.66% versus a 5.23% return for the Russell 2000 Growth Index.
We continue to favor the Capital Goods and Basic Materials arena, as the
companies within these sectors are leveraged to the economy and should continue
to benefit from the latter stages of an economic expansion. Lone Star
Technologies and Maverick Tube are two examples who have experienced strong
earnings growth and correspondingly strong share prices.
The Consumer Cyclicals sector we continue to overweight for similar reasons,
and we favor the stocks of Central Newspapers and Universal Outdoor. Central
Newspapers publishes newspapers in the Indianapolis and Phoenix markets, and
has been experiencing strong revenue growth from its classified and help wanted
businesses. Universal Outdoor is a midwest operator of billboards and has
witnessed similarly strong demand.
Technology is another area we favor and we put a lot of cash to work in this
sector during the second quarter. Although this sector can be extremely
volatile, we continue to find names with excellent growth prospects, and we
like the small semiconductor equipment makers in particular. Semtech Corp. is
an example, and should benefit from Intel's conversion to the Pentium II chip.
Another name with exciting prospects is Information Management Resources which
has developed a cost effective way of handling the Year 2000 problem by e-
mailing code to engineers in India at a fraction of the cost of hiring U.S.
based engineers.
Although small cap stocks continue to underperform their large cap brethren,
we remain optimistic. Small cap growth stocks reported their best performance
this past quarter since 1991. And with small cap valuations at seven year lows
relative to the S&P 500, we foresee significant upside potential in small caps
going forward.
[GRAPH APPEARS HERE]
Historical Portfolio Return
<TABLE>
<CAPTION>
$10,000
Investment made 5/1/96 Russell 2,000 Small Cap
(Portfolio Inception Date) Growth Index Growth Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C>
May 1996 10,000 10,000
May 1996 10,513 10,599.17
Jun 1996 9,830 10,294.35
Jul 1996 8,630 9,480.13
Aug 1996 9,269 10,298.31
Sep 1996 9,746 11,150.77
Oct 1996 9,325 10,169.74
Nov 1996 9,585 9,976.02
Dec 1996 9,772 9,950.35
Jan 1997 10,016 10,302.13
Feb 9,411 9,637.66
Mar 8,747 8,962.47
Apr 8,646 8,762.88
May 9,945 9,780.55
Jun 10,282 10,513.55
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Quality Food Centers, Inc. 1.4% 1.0%
99 Cents Only Stores 1.3% N/A
Philip Services Corp. 1.3% N/A
National-Oilwell, Inc. 1.2% N/A
Newpark Resources, Inc. 1.2% 0.8%
Computer Learning Centers, Inc. 1.2% N/A
Maverick Tube Corp. 1.2% N/A
Lone Star Technologies,Inc. 1.2% N/A
Stage Stores, Inc. 1.1% 0.9%
Samsonite Corp. 1.1% N/A
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Small Cap Russell 2,000 MorningStar
Growth Portfolio Growth Index Peer Group+
---------------- ------------- -----------
<S> <C> <C> <C>
Year to Date** 5.66% 5.23% 3.92%
1 Year 2.13% 4.60% 4.76%
Since Inception 4.38% 2.41% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Computer Software
and Services 13.5% 12.9%
Retail 9.8% 8.0%
Health Products and Services 8.4% 11.4%
Electronic Products 6.9% 4.5%
Media 6.1% 6.3%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. There are special risks associated with
international investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
16
<PAGE>
INCEPTION: MAY 1, 1996
INTERNATIONAL BALANCED PORTFOLIO BRINSON PARTNERS, INC. MANAGEMENT TEAM
Within the equity portion of the Portfolio year-to-date, security selection
contributed to Portfolio returns, while market allocation detracted slightly
from performance. Within international bonds, market allocation made a
meaningful contribution to Portfolio performance. Currency allocation added
value over this time frame as well. The most significant contribution came from
our overweight in the U.S. dollar and underweight in the Continental European
currencies in the first half of 1997.
Year-to-date, international equity markets returned 17.76% on a dollar hedged
basis. European markets gained 25.49%, while the Pacific region rose a more
modest 8.41%. Over this same time frame, international bonds rose 4.65% in
dollar-hedged terms. Returns during this period were fairly tightly clustered
across the 16 international bond markets, reflecting a macroeconomic
environment with few large surprises and converging expectations on inflation
and interest rates. The majority of non-U.S. economies have been categorized by
subdued economic growth and price inflation, and by efforts to cut government
budget deficits. Currencies declined an average of 5.37% relative to the U.S.
dollar, with most of the depreciation occurring in the European currencies.
Our view remains that, with few exceptions, international equity markets are
overpriced. Given our valuation and fundamental analysis, international bonds
remain attractive on both an absolute and relative basis. Recent events in
Europe have magnified the tensions within the European Union, leading us to
reduce our broad overweight in continental European equity markets in favor of
southeast Asia. The Portfolio continues to have no exposure to the Japanese
bond market, where yields remain substantially below our estimates of fair
value. We continue to find attractive valuations within Germany, Canada,
Denmark, Australia and the U.K. We recently lowered our duration strategy to
neutral in Australia, Canada, and Sweden.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96 International Balanced International
(Portfolio Inception Date) Composite Index (A) Balanced Portfolio
<S> <C> <C>
May 1996 10,000 10,000.00
May 1996 9,890 9,992.36
Jun 1996 9,940 10,054.88
Jul 1996 9,847 9,955.81
Aug 1996 9,898 10,007.29
Sep 1996 10,066 10,256.56
Oct 1996 10,082 10,314.89
Nov 1996 10,396 10,677.97
Dec 1996 10,278 10,672.71
Jan 1997 9,927 10,508.77
Feb 9,983 10,623.91
Mar 9,964 10,567.65
Apr 9,934 10,507.44
May 10,489 11,089.20
Jun 10,896 11,433.44
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Federal Republic of Germany 10.2% 9.6%
Government of Canada 6.7% 6.3%
Kingdom of Denmark 5.0% 4.4%
Republic of Italy 4.3% 4.8%
Conversion 3.7% 3.2%
Australian Government 3.3% N/A
Government of Netherlands 2.7% 6.1%
Belgium Kingdom 1.9% 1.7%
French Government 1.8% 5.4%
U.K. Treasury 1.5% 1.0%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
International Balanced International Balanced MorningStar
Portfolio Composite Index (A) Peer Group+
---------------------- ---------------------- -----------
<S> <C> <C> <C>
Year to Date** 7.13% 6.02% 8.00%
1 Year 13.71% 9.61% 14.50%
Since Inception 12.16% 7.63% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Governmental 43.4% 42.7%
Banks and Finance 7.3% 6.3%
Diversified Operations 3.9% 3.5%
Oils and Natural Gas Exploration
and Production 3.7% 3.7%
Electronic Products 3.5% 3.5%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. There are special risks associated with
international investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus.
** Total Returns for a period less than a year are not annualized.
(A) International Balanced Composite Index: 65% Morgan Stanley Capital
International World Index Excluding US, and 35% Salomon Brothers Non-US
Govt. Bond Index excluding US Taxes.
There are special risks associated with international investing, including
currency fluctuations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
17
<PAGE>
INTERNATIONAL EQUITIES PORTFOLIO INCEPTION: MAY 2, 1988
JOHN HANCOCK ADVISERS, INC. MIREN ETCHEVERRY
For the six months ending June 30, 1997, International Equities returned
11.18% (net) versus a return of 11.36% for the MSCI EAFE Index. Many overseas
markets in both the developed world and emerging world, with the exception of
emerging Asia, produced solid results over the last six months.
Since year end, we have reduced our positions in Japan and Hong Kong, however
they remain our two largest country holdings. Both markets lagged in the first
quarter, Japan due to continued economic woes, banking problems and government
tax increases, and Hong Kong in response to rising U.S. interest rates and
fears about the imminent transition to Chinese rule. Confidence, however,
returned to these markets in the second quarter. The easing of Japan's monetary
policy and the yen's weakness provided encouragement for resumption of growth
to 2--2.5%. In Hong Kong, transition concerns dissipated and investors became
encouraged about the longer-term for both Hong Kong and its impact on China.
The Portfolio benefited from our establishing a significant position in the
emerging markets of Latin America. Many of these countries have embraced
economic reform and, unleashing significant investment opportunities. Brazil,
our largest country holding in Latin America, has seen its stock market soar
this year as the positive combination of political stability, privatization and
economic reform plays out.
Our strategy in Europe is focused on corporate restructuring stories. The
increased private and public sector discipline associated with the process of
monetary union is presenting some very attractive investment opportunities. The
U.K. remains our largest position in Europe.
[GRAPH APPEARS HERE}
Historical Portfolio Return
<TABLE>
<CAPTION>
$10,000
Investment made 5/2/88 MSCI EAFE International
(Portfolio Inception Date) Index Equities Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C>
6/30/88 9,428 9,889.20
6/30/89 10,351 10,364.42
6/30/90 10,717 12,369.79
6/30/91 9,514 11,745.04
6/30/92 9,484 13,063.11
6/30/93 11,447 14,569.48
6/30/94 13,428 16,844.97
6/30/95 13,690 17,271.00
6/30/96 15,555 19,212.79
6/30/97 17,602 21,860.19
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Telecomunicacoes Brasileiras
S/A - Telebras 6.1% 1.4%
Panamerican Beverages, Inc. 4.0% N/A
Centrais Electricas Brasileiras
Sa - Eletrobras 3.6% N/A
Fujitsu, Ltd. 3.2% N/A
China Resources Enterprise, Ltd. 3.1% 2.4%
Sony Corp. 2.9% 2.4%
Matsushita-Kotobuki Electronics 2.7% 2.3%
Hutchison Whampoa, Ltd. 2.7% 2.5%
Pearson plc 2.6% 2.5%
Moet Hennessy-Louis Vuitton 2.6% 2.9%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
International MSCI EAFE MorningStar
Equities Portfolio Index Peer Group+
------------------ --------- -----------
<S> <C> <C> <C>
Year to Date** 11.18% 11.36% 12.52%
1 Year 13.78% 13.16% 18.37%
5 Years 10.85% 13.17% 10.50%
Since Inception 8.91% 6.47% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Diversified Operations 13.9% 14.6%
Telecommunications 10.5% 3.1%
Food, Beverage and Tobacco 7.0% N/A
Miscellaneous 6.6% 6.9%
Utilities - Electric 6.2% N/A
</TABLE>
* Total returns are for the period ending June 30, 1997, returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
There are special risks associated with international investing, including
currency fluctuations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
18
<PAGE>
INCEPTION: MAY 1, 1996
INTERNATIONAL OPPORTUNITIES PORTFOLIO ROWE PRICE-FLEMING INTERNATIONAL,
INC. MARTIN WADE
The total return performance for the first six months of 1997 for The
International Opportunities Portfolio was roughly in line with the 11.36%
return of the MSCI EAFE Index.
Country allocation relative to the EAFE Index provided value-added over the
first six months of 1997, with overweightings in the Netherlands and Latin
America as well as the underweighting of Japan the most notable contributors.
Stock selection relative to the index was a small positive factor, with the
most significant contributions coming from portfolio holdings in Brazil and
Japan.
We continue to have no currency hedges in place in your Portfolio. That said,
our underweight yen position relative to the benchmark subtracted value as that
currency moved higher versus the U.S. dollar during the second quarter.
Looking forward, we continue to find the general economic outlook healthy--
with growth now accelerating in Continental Europe and better than we had
expected in Japan. Importantly, this improved level of economic activity has
not led to higher rates of inflation--a backdrop which has helped to underpin
bond markets worldwide. The current environment should continue to provide
reasonable support to global equities.
Recent market strength has taken stock market valuations in a number of
regions to relatively expensive levels, but unless bond markets weaken or
corporate earnings disappoint, we believe that these valuations can be
sustained given the low inflation environment worldwide. Corporate earnings
look most vulnerable in the U.K. and, to a lesser extent, Japan, which helps to
explain our continued underweighting of these markets. Generally, though,
corporate earnings look set to come through strongly in 1997, and this should
help to underpin a reasonable outlook for international equities through the
balance of the calendar year.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Historical Portfolio Return
$10,000
Investment made 5/1/96 MSCI EAFE International
(Portfolio Inception Date) Index Opportunities Portfolio
<S> <C> <C>
May 1996 10,000 10,000.00
May 1996 9,818 10,024.34
Jun 1996 9,876 10,129.22
Jul 1996 9,590 9,819.73
Aug 1996 9,613 9,971.07
Sep 1996 9,871 10,190.88
Oct 1996 9,773 10,150.25
Nov 1996 10,164 10,608.68
Dec 1996 10,036 10,672.04
Jan 1997 9,687 10,544.32
Feb 9,847 10,671.97
Mar 9,886 10,659.18
Apr 9,940 10,701.19
May 10,590 11,332.27
Jun 1997 11,176 11,796.26
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Telecoomunicacoes Brasileiras
S/A - Telebras 2.5% 1.4%
Royal Dutch Petroleum Co. 2.5% 2.0%
Smithkline Beecham plc 2.1% 1.5%
Novartis AG 1.9% 1.0%
National Westminster Bank plc 1.8% 1.3%
Wolters Kluwer NV 1.7% 2.1%
Roche Holdings AG 1.5% 0.8%
Reed International plc 1.3% 1.2%
Compagnie Generale des Eaux 1.3% 1.2%
Elsevier NV 1.2% 1.9%
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return*
- --------------------------------------------------------------------------------
Intl. Opportunities MSCI EAFE MorningStar
Portfolio Index Peer Group+
------------------- --------- -----------
<S> <C> <C> <C>
Year to Date** 10.53% 11.36% 12.52%
1 Year 16.46% 13.16% 18.37%
Since Inception 15.20% 10.00% N/A
</TABLE>
<TABLE>
<CAPTION>
Top Five Industries (as of June 30, 1997)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 10.6% 7.8%
Banks and Finance 9.7% 8.5%
Diversified Operations 8.0% 7.2%
Retail 7.3% 7.2%
Electronic Products 6.7% 6.8%
</TABLE>
* Total returns are for the period ending June 30, 1997. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. There are special risks associated with
international investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus.
There are special risks associated with international investing, including
currency fluctuations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
** Total Returns for a period less than a year are not annualized.
+ Source: MorningStar, Inc. Data as of 6/30/97. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
19
<PAGE>
FINANCIAL MARKETS SUMMARY--MID-YEAR REVIEW 1997
Equity Markets (Average Annual Total Return)
[BAR GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
5 Years 1 Year Year-to-Date**
<S> <C> <C> <C>
Emerging Markets* 14.75 12.82 17.75
MSCI EAFE 13.17 13.16 11.36
Russell 2000 Value 20.17 28.24 14.81
Russell 2000 Growth 15.13 4.60 5.23
Russell MidCap Value 18.91 27.97 14.51
Russell MidCap Growth 17.35 17.59 10.54
Russell 1000 Value 19.89 33.18 17.68
Russell 1000 Growth 18.96 31.34 19.55
S&P 500 19.73 34.58 20.50
Largest 50 Stocks 21.14 40.33 23.69
</TABLE>
During the first half of 1997 investors in large cap stocks continued to be
handsomely rewarded as the S&P 500 continued to set new record highs. Small Cap
stocks finally made a recovery in the 2nd Quarter after a long period of
relatively weak performance. Bond investors fared well due to expectations of
low inflation, the pace of the economy, and the Federal Reserve's view that
inflation is under control in the short-term. International stocks performed
well, turning in their best quarterly performance, during the 2nd quarter,
since the 4th quarter of 1988. Emerging markets in Latin America performed very
well compared to the Far East Asian markets. The largest 50 stocks in the
market returned 23.69%, outpacing the S&P 500 by over 300 basis points thus
providing a good measure of the narrow breadth of the market. The international
markets performed very well during the first-half of the year, almost all of
this performance occurring during the 2nd quarter due to strong performance in
European markets, Japan, and Hong Kong. Emerging markets returned 17.75% as
measured by the MSCI Emerging Markets Free index. Latin American markets
returned 40.79% outperforming the smaller Far East Asian markets which returned
- -1.64%.
Fixed Income Markets (Average Annual Total Return)
[BAR GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
5 Years 1 Year Year-to-Date**
<S> <C> <C> <C>
JPM Non-US Govt Bond 9.36 13.40 4.75
SB High Yield Bond 11.55 14.58 5.96
LB Mortgage 6.87 9.09 3.91
LB Govt Bond 6.97 7.40 2.62
LB Corp Bond 8.03 8.79 3.08
LB Govt/Corp Bond 7.23 7.75 2.74
LB Aggregate Bond 7.12 8.16 3.11
</TABLE>
During the 2nd quarter, fixed income markets benefited by moderating economic
growth and indications of low inflation. Given this environment, interest rates
declined providing bond investors with solid returns.
* MSCI Emerging Markets Free Index
** The Year to Date Amount is Not Annualized
20
<PAGE>
PORTFOLIO BENCHMARKS
STANDARD & POOR'S 500 INDEX: Covers 500 industrial, utility, transportation and
financial companies of the U.S. markets (mostly NYSE issues). The index
represents about 75% of NYSE market capitalization and 30% of NYSE issues.
RUSSELL 1000 GROWTH INDEX: Contains those Russell 1000 securities with a
greater-than-average growth orientation. Securities in this index tend to
exhibit higher price-to-book and price-earnings ratios, lower dividend yields
and higher forecasted growth values than the Russell 1000 Value Index.
RUSSELL 1000 VALUE INDEX: Contains those Russell 1000 securities with a less-
than-average growth orientation. Securities in this index tend to exhibit low
price-to-book and price-earnings ratios, higher dividend yields and lower
forecasted growth values than the Russell 1000 Growth Index.
RUSSELL MIDCAP GROWTH INDEX: Consists of the smallest 800 securities in the
Russell 1000 Growth Index, as ranked by total market capitalization. This index
captures the medium-sized universe of securities and represents approximately
34% of the Russell 1000 total market capitalization. The Russell Midcap Growth
Index contains securities with a greater-than-average growth orientation.
RUSSELL MIDCAP VALUE INDEX: Consists of the smallest 800 securities in the
Russell Value 1000 Index, as ranked by total market capitalization. This index
captures the medium-sized universe of securities and represents approximately
34% of the Russell 1000 total market capitalization. The Russell Midcap Value
Index contains securities with a less-than-average growth orientation.
RUSSELL 2000 GROWTH INDEX: Contains those Russell 2000 securities with a
greater-than-average growth orientation. Securities in this index tend to
exhibit higher price-to-book and price-earnings ratios, lower dividend yields
and higher forecasted growth values than the Russell 2000 Value Index.
RUSSELL 2000 INDEX: Consists of the smallest 2,000 in the Russell 3000 Index,
representing approximately 11% of the Russell 3000 total market capitalization
WILSHIRE REAL ESTATE SECURITIES INDEX: A market-capitalization weighted index
which measures the performance of more than 85 real estate securities. The
index contains performance data on five major categories of property: office,
retail, industrial, apartment and miscellaneous.
LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX: Composed of all bonds that are
investment grade (rated Baa or higher by Moody's or BBB or higher by S&P, if
unrated by Moody's.) Issues must have at least one year to maturity.
LEHMAN BROTHERS AGGREGATE BOND INDEX: Composed of securities from the Lehman
Brothers Government/Corporate Bond Index, the Mortgage-Backed Securities Index
and the Asset-Backed Securities Index.
MERRILL LYNCH 1-5 YEAR U.S. GOVERNMENT BOND INDEX: A capitalization-weighted
index calculated on a total return basis with dividends reinvested.
MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALIA, FAR EAST INDEX: An
arithmetic, market value-weighted average of the performance of over 900
securities listed on the stock exchanges of the following countries in Europe,
Australia, and the Far East: Australia, Austria, Belgium, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Italy, Japan, Malaysia, Netherlands, New
Zealand, Norway, Singapore, Spain, Sweden, Switzerland and United Kingdom.
JP MORGAN NON-US GOVERNMENT BOND INDEX: A total return, market capitalization
weighted index, consisting of the following countries: Australia, Belgium,
Canada, Denmark, France, Germany, Italy, Japan, Netherlands, Spain, Sweden and
United Kingdom.
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD EXCLUDING THE UNITED: An arithmetic,
market value-weighted average of the performance of more than 1000 securities
listed on the stock exchanges of the following: Australia, Austria, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan,
Malaysia, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden,
Switzerland and United Kingdom.
SALOMON BROTHERS NON-US GOVERNMENT BOND INDEX: A market capitalization weighted
index consisting of the government bond markets of the following countries:
Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan,
Netherlands, Spain, Sweden, United Kingdom. Country eligibility is determined
based on market capitalization and investability criteria. All issues have a
remaining maturity of at least one year.
21
<PAGE>
MORNINGSTAR UNIVERSE -- PEER GROUPS (AS OF 6/30/97)
MONEY MARKET PORTFOLIO: Consistent with the Portfolio's objective, this peer
group represents an average annual total return for all variable annuity and
life products within the Morningstar variable universe that have a Money
Market objective.
SHORT TERM U.S. GOVERNMENT BOND PORTFOLIO: Consistent with the Portfolio's
investment style, this peer group represents an average annual total return
for all variable annuity and life products within the Morningstar variable
universe that have a Government Bond investment objective, combined with a
High Quality / Short maturity fixed income investment style.
SOVEREIGN BOND PORTFOLIO: Consistent with the Portfolio's investment style,
this peer group represents an average annual total return for all variable
annuity and life products with the Morningstar variable universe that have a
Corporate Bond investment objective.
STRATEGIC BOND PORTFOLIO: Consistent with the Portfolio's investment style,
this peer group represents an average annual total return for all variable
annuity and life products within the Morningstar variable universe that a
Corporate Bond investment objective and an average total return universe that
has an International Bond investment objective. The peer group average annual
total return is constructed using a 75% weighting of the average annual return
of the Corporate Bond universe and a 25% weighting of the average annual
return of the International Bond universe.
MANAGED PORTFOLIO: Consistent with the Portfolio's investment style, this peer
group represents an average annual total return for all variable annuity and
life products within the Morningstar variable universe that have a Balanced
investment objective, combined with a Large Blend equity investment style and
a High Quality / Intermediate maturity fixed income investment style.
GROWTH & INCOME PORTFOLIO AND EQUITY INDEX PORTFOLIO: Consistent with the
Portfolios' equity investment style, this peer group represents an average
annual total return for all variable annuity and life products within the
Morningstar variable universe that have a Large Blend equity investment style.
LARGE CAP VALUE PORTFOLIO: Consistent with the Portfolio's equity investment
style, this peer group represents an average annual total return for all
variable annuity and life products within the Morningstar variable universe
that have a Large Value equity investment style.
LARGE CAP GROWTH PORTFOLIO: Consistent with the Large Cap Growth Portfolio's
equity investment style, this peer group represents an average annual total
return for all variable annuity and life products within the Morningstar
variable universe that have a Large Growth equity investment style as of
6/30/97. This Large Growth peer group annual average is used for the period
May, 1996 to June, 1997 and is linked to a Large Blend peer group annual
average for longer periods to reflect a change in strategy/style from Large
Cap Blend to a Large Cap Growth in May, 1996.
MID CAP VALUE PORTFOLIO: Consistent with the Mid Cap Value Portfolio's equity
investment style, this peer group represents an average annual total return
for all variable annuity and life products within the Morningstar variable
universe that have a Mid Value equity investment style.
MID CAP GROWTH PORTFOLIO AND SPECIAL OPPORTUNITIES PORTFOLIO: Consistent with
the Mid Cap Growth Portfolios' equity investment style, this peer group
represents an average annual total return for all variable annuity and life
products within the Morningstar variable universe that have a Mid Growth
equity investment style.
SMALL CAP VALUE PORTFOLIO: Consistent with the Portfolio's investment style,
this peer group represents an average annual total return for all variable
annuity and life products within the Morningstar variable universe that have a
Small Value equity investment style.
SMALL CAP GROWTH PORTFOLIO: Consistent with the Small Cap Growth Portfolio's
investment style, this peer group represents an average annual total return
for all variable annuity and life products within the Morningstar variable
universe that have a Small Growth equity investment style.
INTERNATIONAL BALANCED PORTFOLIO: Consistent with the International Balanced
Portfolio's investment style, this peer group represents an average annual
total return for all variable annuity and life products within the Morningstar
variable universe that have a Foreign Stock investment objective and an
average total return universe that has an International Bond investment
objective as of 6/30/97. The peer group average annual total return is
constructed using a 65% weighting of the average annual return of the Foreign
Stock universe and a 35% weighting of the average annual return of the
International Bond universe.
INTERNATIONAL EQUITIES PORTFOLIO AND INTERNATIONAL OPPORTUNITIES
PORTFOLIO: Consistent with the International Equities Portfolio's investment
style, this peer group represents an average annual total return for all
variable annuity and life products within the Morningstar variable universe
that have a Foreign Stock investment objective, combined with a Large Blend
equity investment style.
22
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Sovereign International Small Cap International Mid Cap Large Cap Money Mid Cap
Growth Bond Equities Growth Balanced Growth Value Market Value
--------- --------- ------------- --------- ------------- ------- --------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost..................... $520,257 $655,861 $135,654 $27,177 $22,771 $21,804 $33,832 $20,022
Net unrealized
appreciation of
investments.............. 120,866 9,637 36,601 4,939 1,481 3,110 4,359 2,150
Short-Term Investments at
market................... 14,757 74,707 1,937 638 514 2,399 5,016 $222,831 2,892
-------- -------- -------- ------- ------- ------- ------- -------- -------
Total Investments........ 655,880 740,205 174,192 32,754 24,766 27,313 43,207 222,831 25,064
Cash...................... 207 54 98 655 328 109 1
Receivable for:
Investments sold......... 9,860 220 86
Interest................. 12,148 7 265 11
Dividends................ 548 560 6 66 2 78 15
Futures contracts daily
variation............... 15
Foreign currency Sold.... 52 13,161 1,401 13
Other Assets............. 128 451
-------- -------- -------- ------- ------- ------- ------- -------- -------
TOTAL ASSETS............. $656,635 $762,228 $174,993 $33,078 $39,364 $29,130 $43,418 $222,832 $25,079
LIABILITIES
Payables for:
Investments purchased.... 8,510 15,511 233 343 530 119 119
Foreign currency
purchased............... 52 13,161 1,401 13
Future contracts daily
variation...............
Other liabilities........ 16 660 98 2 22 30 8 42 3
-------- -------- -------- ------- ------- ------- ------- -------- -------
TOTAL LIABILITIES........ 8,526 16,171 150 235 13,526 1,961 140 42 122
-------- -------- -------- ------- ------- ------- ------- -------- -------
NET ASSETS................ 648,109 746,057 174,843 32,843 25,838 27,169 43,278 222,790 24,957
======== ======== ======== ======= ======= ======= ======= ======== =======
Shares of beneficial
interest outstanding..... 31,672 76,387 9,416 3,131 2,360 2,552 3,446 22,279 1,906
-------- -------- -------- ------- ------- ------- ------- -------- -------
Net asset value per share. $ 20.46 $ 9.77 $ 18.57 $ 10.49 $ 10.95 $ 10.64 $ 12.56 $ 10.00 $ 13.09
======== ======== ======== ======= ======= ======= ======= ======== =======
Composition of net assets:
Capital Paid in.......... 505,647 735,778 139,525 29,850 23,547 25,024 38,131 222,790 21,589
Accumulated net realized
gain/(loss) on
investments............. 21,596 664 (1,236) (1,930) 415 (934) 788 1,218
Undistributed net
investment income....... (50) (16) (11) (7)
Net unrealized
appreciation/(depreciation)
of:
Investments.............. 120,866 9,637 36,601 4,939 1,481 3,110 4,359 2,150
Foreign currency
translation............. 3 406 (24)
Futures contracts........ (22)
-------- -------- -------- ------- ------- ------- ------- -------- -------
Net Assets................ $648,109 $746,057 $174,843 $32,843 $25,838 $27,169 $43,278 $222,790 $24,957
======== ======== ======== ======= ======= ======= ======= ======== =======
</TABLE>
See notes to financial statements.
23
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term
Special Real Estate Growth & U.S. Small Cap International Equity Strategic
Opportunities Equity Income Managed Government Value Opportunities Index Bond
------------- ----------- ---------- ---------- ---------- --------- ------------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term
Investments at
cost............. $186,351 $137,837 $1,788,348 $2,268,171 $60,923 $16,626 $22,379 $43,241 $16,533
Net unrealized
appreciation
(depreciation) of
investments...... 13,747 34,105 588,579 279,915 (376) 2,425 2,813 6,394 147
Short-Term
Investments at
market........... 5,824 2,742 77,820 62,941 1,927 2,076 1,921 3,406 1,196
-------- -------- ---------- ---------- ------- ------- ------- ------- -------
Total
Investments..... 205,922 174,684 2,454,747 2,611,027 62,474 21,127 27,113 53,041 17,876
Cash.............. 61 2 13,557 179 36 1,514
Receivable for:
Investments sold. 2,192 1,962 28
Interest......... 18,329 641 219
Dividends........ 80 937 3,961 1,913 14 56 69
Futures contracts
daily variation.
Foreign currency
sold............ 78 10 5,840
Other Assets..... 4 26 4
-------- -------- ---------- ---------- ------- ------- ------- ------- -------
TOTAL ASSETS..... $208,337 $175,621 $2,458,710 $2,644,826 $63,115 $23,103 $27,412 $53,146 $25,453
LIABILITIES
Payables for:
Investments
purchased....... 114 62,547 2,764 935 791 1,327
Foreign currency
purchased....... 78 10 5,840
Future contracts
daily variation.
Other
liabilities..... 41 28 143 120 35 1 13 20 7
-------- -------- ---------- ---------- ------- ------- ------- ------- -------
TOTAL
LIABILITIES..... 119 28 257 62,667 35 2,765 958 811 7,174
-------- -------- ---------- ---------- ------- ------- ------- ------- -------
NET ASSETS........ 208,218 175,593 2,458,453 2,582,159 63,080 20,338 26,454 52,335 18,279
======== ======== ========== ========== ======= ======= ======= ======= =======
Shares of
beneficial
interest
outstanding...... 13,447 11,654 144,992 181,479 6,287 1,678 2,274 3,962 1,795
-------- -------- ---------- ---------- ------- ------- ------- ------- -------
Net asset value
per share........ $ 15.48 $ 15.07 $ 16.96 $ 14.23 $ 10.03 $ 12.12 $ 11.63 $ 13.21 $ 10.18
======== ======== ========== ========== ======= ======= ======= ======= =======
Composition of net
assets:
Capital Paid in.. 192,425 139,170 1,768,965 2,258,014 63,511 17,481 23,504 45,323 17,930
Accumulated net
realized gain
(loss) on
investments..... 2,065 2,318 99,392 44,230 (55) 432 180 618 205
Undistributed net
investment
income.......... (19) 1,517 (43)
Net unrealized
appreciation/(depreciation)
of:
Investments...... 13,747 34,105 588,579 279,915 (376) 2,425 2,813 6,394 147
Foreign currency
translation..... (3)
Futures
contracts.......
-------- -------- ---------- ---------- ------- ------- ------- ------- -------
Net Assets........ $208,218 $175,593 $2,458,453 $2,582,159 $63,080 $20,338 $26,454 $52,335 $18,279
======== ======== ========== ========== ======= ======= ======= ======= =======
</TABLE>
See notes to financial statements.
24
<PAGE>
STATEMENT OF OPERATIONS
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
Period Ended June 30, 1997
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Sovereign International Small Cap International Mid Cap Large Cap Money Mid Cap
Growth Bond Equities Growth Balanced Growth Value Market Value
--------- --------- ------------- --------- ------------- ------- --------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest.................... $ 283 $27,408 $ 160 $ 90 $ 363 $ 18 $ 118 $6,100 $ 55
Dividends (Note B).......... 3,450 1,694 39 184 85 419 -- 68
------- ------- ------- ------- ------ ------ ------ ------ ------
3,733 27,408 1,854 129 547 103 537 6,100 123
Expenses
Investment advisory fee
(Note C)................... 1,127 905 468 89 103 85 111 273 70
Auditors fees............... 12 15 7 5 5 5 5 8 5
Trustees fees............... 3 2 3 3 3 2 3 3 3
Custodian fees.............. 19 152 83 16 30 32 11 22 12
Fidelity bond............... 1
Printing & mailing fees..... 97 121 42 24 24 24 24 50 23
------- ------- ------- ------- ------ ------ ------ ------ ------
1,258 1,195 603 137 165 148 155 356 113
Less expenses reimbursed
(Note C)................... 18 32 38 6 21
------- ------- ------- ------- ------ ------ ------ ------ ------
1,258 1,195 603 119 133 110 149 356 92
------- ------- ------- ------- ------ ------ ------ ------ ------
Net Investment Income........ 2,475 26,213 1,251 10 414 (7) 388 5,744 31
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain (loss) on
sales of investments....... 21,596 664 (1,236) (1,930) 415 (934) 788 1,218
Increase in unrealized
appreciation/(depreciation)
of:
Investments................. 69,992 (784) 17,631 4,127 570 2,491 3,148 1,119
Foreign currency
translation................ 342 (22)
------- ------- ------- ------- ------ ------ ------ ------ ------
Net realized and unrealized
Gain/(Loss) on investments. 91,588 (120) 16,395 2,197 1,327 1,535 3,936 2,337
------- ------- ------- ------- ------ ------ ------ ------ ------
Net increase in net assets
resulting from operations.. $94,063 $26,093 $17,646 $ 2,207 $1,741 $1,528 $4,324 $5,744 $2,368
======= ======= ======= ======= ====== ====== ====== ====== ======
</TABLE>
See notes to financial statements.
25
<PAGE>
STATEMENT OF OPERATIONS--Continued
(Unaudited)
JOHN HANCOCK VARIABLE SERIES TRUST I
Period Ended June 30, 1997
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term
Special Real Estate Growth & U.S. Small Cap International Equity Strategic
Opportunities Equity Income Managed Government Value Opportunities Index Bond
------------- ----------- -------- -------- ---------- --------- ------------- ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest............... $ 458 $ 190 $ 1,711 $ 47,433 $1,836 $ 86 $ 38 $ 26 $ 526
Dividends (Note B)..... 498 4,577 21,400 10,687 -- 45 213 294
-------- ------ -------- -------- ------ ------ ------ ------ -----
956 4,767 23,111 58,120 1,836 131 251 320 526
Expenses
Investment advisory
fee (Note C).......... 739 477 2,761 4,030 129 57 92 36 56
Auditors fees.......... 7 7 33 37 6 5 5 5 5
Trustees fees.......... 2 3 2 3 3 2 3 2 2
Custodian fees......... 43 18 55 139 15 12 11 27 6
Fidelity bond.......... 1 1 1 0 1 1 1
Printing & mailing
fees.................. 47 42 316 353 29 23 24 24 23
-------- ------ -------- -------- ------ ------ ------ ------ -----
839 548 3,168 4,562 182 100 135 95 93
Less expenses
reimbursed (Note C)... 25 19 95 19
-------- ------ -------- -------- ------ ------ ------ ------ -----
839 548 3,168 4,562 182 75 116 74
-------- ------ -------- -------- ------ ------ ------ ------ -----
Net Investment Income... 117 4,219 19,943 53,558 1,654 56 135 320 452
REALIZED AND UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized gain
(loss) on sales of
investments........... 2,065 2,318 99,392 44,230 (55) 432 180 618 205
Increase in unrealized
appreciation/(depreciation)
of:
Investments............ (14,976) 2,661 228,651 113,715 (19) 1,725 1,778 5,171 (119)
Foreign currency
translation........... (1)
-------- ------ -------- -------- ------ ------ ------ ------ -----
Net realized and
unrealized Gain/(Loss)
on investments........ (12,911) 4,979 328,043 157,945 (74) 2,157 1,958 5,789 85
-------- ------ -------- -------- ------ ------ ------ ------ -----
Net increase/(decrease)
in net assets
resulting from
operations............ $(12,794) $9,198 $347,986 $211,503 $1,580 $2,213 $2,093 $6,109 $ 537
======== ====== ======== ======== ====== ====== ====== ====== =====
</TABLE>
See notes to financial statements.
26
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Growth Sovereign Bond International Equities
------------------------- ------------------------- -------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
From Operations
Net investment
income......... $ 2,475 $ 6,033 $ 26,213 $ 49,304 $ 1,251 $ 1,854
Net realized
gain/(loss) on
sales of
investments.... 21,596 70,842 664 3,975 (1,236) 1,098
Change in net
unrealized
appreciation/(depreciation)
of investments. 69,992 (979) (784) (24,593) 17,631 9,402
Foreign
Currency
Translation.... 70
-------- -------- -------- -------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations..... 94,063 75,896 26,093 28,686 17,646 12,424
Distributions to
Shareholders
From:
Net investment
income......... (2,475) (6,033) (26,213) (49,304) (1,251) (1,831)
Realized gain on
investments.... (71,587) (3,975)
Capital Paid in.
-------- -------- -------- -------- -------- --------
Decrease in net
assets
resulting from
distributions.. (2,475) (77,620) (26,213) (53,279) (1,251) (1,831)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 59,332 104,231 33,563 64,307 20,020 37,327
Distributions
reinvested..... 2,475 77,620 26,213 53,279 1,251 1,831
Payment for
shares
redeemed....... (29,431) (36,258) (39,710) (67,191) (18,576) (20,801)
-------- -------- -------- -------- -------- --------
Increase from
trust share
transactions... 32,376 145,593 20,066 50,395 2,695 18,357
-------- -------- -------- -------- -------- --------
NET INCREASE IN
NET ASSETS...... 123,964 143,869 19,946 25,802 19,090 28,950
NET ASSETS
Beginning of
Year........... 524,145 380,276 726,111 700,309 155,753 126,803
-------- -------- -------- -------- -------- --------
End of Year..... $648,109 $524,145 $746,057 $726,111 $174,843 $155,753
======== ======== ======== ======== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 3,153 5,608 3,449 6,571 1,184 2,305
Reinvested...... 131 4,422 2,704 5,466 73 112
Redeemed........ (1,577) (1,960) (4,081) (6,870) (1,095) (1,286)
-------- -------- -------- -------- -------- --------
Net increase in
shares
outstanding..... 1,707 8,070 2,072 5,167 162 1,131
======== ======== ======== ======== ======== ========
<CAPTION>
Small Cap International
Growth Balanced
---------------------------- ----------------------------
Unaudited Unaudited
Six-Month Period from Six-Month Period from
Period Ended May 1, 1996 (*) Period Ended May 1, 1996 (*)
June 30, to December 31, June 30, to December 31,
1997 1996 1997 1996
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
From Operations
Net investment
income......... $ 10 $ 11 $ 414 $ 527
Net realized
gain/(loss) on
sales of
investments.... (1,930) (1,491) 415 2
Change in net
unrealized
appreciation/(depreciation)
of investments. 4,127 811 570 911
Foreign
Currency
Translation.... 342 64
------------ --------------- ------------ ---------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 2,207 (669) 1,741 1,504
Distributions to
Shareholders
From:
Net investment
income......... (18) (18) (414) (537)
Realized gain on
investments.... (55)
Capital Paid in.
------------ --------------- ------------ ---------------
Decrease in net
assets
resulting from
distributions.. (18) (18) (414) (592)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 14,641 27,331 4,199 25,192
Distributions
reinvested..... 18 18 414 592
Payment for
shares
redeemed....... (4,638) (6,029) (4,200) (2,598)
------------ --------------- ------------ ---------------
Increase from
trust share
transactions... 10,021 21,320 413 23,186
------------ --------------- ------------ ---------------
NET INCREASE IN
NET ASSETS...... 12,210 20,633 1,740 24,098
NET ASSETS
Beginning of
Year........... 20,633 24,098
------------ --------------- ------------ ---------------
End of Year..... $32,843 $20,633 $25,838 $24,098
============ =============== ============ ===============
Analysis of Trust
Share
Transactions:
Sold............ 1,526 2,681 404 2,515
Reinvested...... 2 2 39 59
Redeemed........ (474) (606) (402) (255)
------------ --------------- ------------ ---------------
Net increase in
shares
outstanding..... 1,054 2,077 41 2,319
============ =============== ============ ===============
</TABLE>
(*) Commencement of Investment Operations.
See notes to financial statements.
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Mid Cap Large Cap Mid Cap
Growth Value Money Market Value
------------------------- ------------------------- ------------------------- -------------------------
Unaudited Period from Unaudited Period from Unaudited Unaudited Period from
Six-Month May 1, Six-Month May 1, Six-Month Six-Month May 1,
Period Ended 1996 (*) to Period Ended 1996 (*) to Period Ended Year Ended Period Ended 1996 (*) to
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
1997 1996 1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
From Operations
Net investment
income......... $ (7) $ 47 $ 388 $ 199 $ 5,744 $ 10,365 $ 31 $ 34
Net realized
gain/(loss) on
sales of
investments.... (934) (338) 788 209 1,218 197
Change in net
unrealized
appreciation/
(depreciation)
of investments. 2,491 619 3,148 1,211 1,119 1,031
Foreign Currency
Translation.... (22) (2)
------- ------- ------- ------- -------- --------- ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations..... 1,528 326 4,324 1,619 5,744 10,365 2,368 1,262
Distributions to
Shareholders
From:
Net investment
income......... (47) (388) (199) (5,744) (10,365) (31) (34)
Realized gain on
investments.... (225) (205)
Capital Paid in.
------- ------- ------- ------- -------- --------- ------- -------
Decrease in net
assets
resulting from
distributions.. (47) (388) (424) (5,744) (10,365) (31) (239)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 11,701 17,779 21,316 22,296 79,952 166,173 16,151 12,553
Distributions
reinvested..... 47 388 424 5,744 10,365 31 239
Payment for
shares
redeemed....... (2,552) (1,613) (2,143) (4,134) (76,141) (149,212) (4,488) (2,889)
------- ------- ------- ------- -------- --------- ------- -------
Increase from
trust share
transactions... 9,149 16,213 19,561 18,586 9,555 27,326 11,694 9,903
------- ------- ------- ------- -------- --------- ------- -------
NET INCREASE IN
NET ASSETS...... 10,677 16,492 23,497 19,781 9,555 27,326 14,031 10,926
NET ASSETS
Beginning of
Year........... 16,492 19,781 213,235 185,909 10,926
------- ------- ------- ------- -------- --------- ------- -------
End of Year..... $27,169 $16,492 $43,278 $19,781 $222,790 $ 213,235 $24,957 $10,926
======= ======= ======= ======= ======== ========= ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 1,201 1,763 1,810 2,130 16,617 16,617 1,315 1,215
Reinvested...... 5 33 39 1,037 1,037 2 21
Redeemed........ (262) (155) (181) (385) (14,921) (14,921) (374) (273)
------- ------- ------- ------- -------- --------- ------- -------
Net increase in
shares
outstanding..... 939 1,613 1,662 1,784 2,733 2,733 943 963
======= ======= ======= ======= ======== ========= ======= =======
<CAPTION>
Special
Opportunities
-------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
From Operations
Net investment
income......... $ 117 $ 212
Net realized
gain/(loss) on
sales of
investments.... 2,065 6,812
Change in net
unrealized
appreciation/
(depreciation)
of investments. (14,976) 22,836
Foreign Currency
Translation....
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... (12,794) 29,860
Distributions to
Shareholders
From:
Net investment
income......... (136) (177)
Realized gain on
investments.... (7,290)
Capital Paid in.
------------ ------------
Decrease in net
assets
resulting from
distributions.. (136) (7,467)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 43,841 121,171
Distributions
reinvested..... 136 7,467
Payment for
shares
redeemed....... (16,937) (11,409)
------------ ------------
Increase from
trust share
transactions... 27,040 117,229
------------ ------------
NET INCREASE IN
NET ASSETS...... 14,110 139,622
NET ASSETS
Beginning of
Year........... 194,108 54,486
------------ ------------
End of Year..... $208,218 $194,108
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 2,798 7,921
Reinvested...... 9 452
Redeemed........ (1,109) (757)
------------ ------------
Net increase in
shares
outstanding..... 1,698 7,616
============ ============
</TABLE>
(*) Commencement of Investment Operations
See notes to financial statements.
28
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Real Estate Equity Growth & Income Managed
------------------------- ------------------------- -------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE
(DECREASE) IN
NET ASSETS
From Operations
Net investment
income......... $ 4,219 $ 7,277 $ 19,943 $ 40,433 $ 53,558 $ 97,874
Net realized
gain/(loss) on
sales of
investments.... 2,318 663 99,392 214,384 44,230 190,969
Change in net
unrealized
appreciation/(depreciation)
of investments. 2,661 28,588 228,651 79,058 113,715 (58,766)
Foreign
Currency
Translation....
-------- -------- ---------- ---------- ---------- ----------
Net increase in
net assets
resulting from
operations..... 9,198 36,528 347,986 333,875 211,503 230,077
Distributions to
Shareholders
From:
Net investment
income......... (4,219) (7,277) (19,943) (40,433) (53,558) (97,874)
Realized gain on
investments.... (274) (214,837) (195,066)
Capital Paid in.
-------- -------- ---------- ---------- ---------- ----------
Decrease in net
assets
resulting from
distributions.. (4,219) (7,551) (19,943) (255,270) (53,558) (292,940)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 25,982 21,037 131,752 221,113 91,966 211,434
Distributions
reinvested..... 4,219 7,551 19,943 255,270 53,558 292,940
Payment for
shares
redeemed....... (10,692) (15,242) (69,212) (105,646) (107,970) (148,815)
-------- -------- ---------- ---------- ---------- ----------
Increase from
trust share
transactions... 19,509 13,346 82,483 370,737 37,554 355,559
-------- -------- ---------- ---------- ---------- ----------
NET INCREASE IN
NET ASSETS...... 24,488 42,323 410,526 449,342 195,499 292,696
NET ASSETS
Beginning of
Year........... 151,105 108,782 2,047,927 1,598,585 2,386,660 2,093,964
-------- -------- ---------- ---------- ---------- ----------
End of Year..... $175,593 $151,105 $2,458,453 $2,047,927 $2,582,159 $2,386,660
======== ======== ========== ========== ========== ==========
Analysis of Trust
Share
Transactions:
Sold............ 1,777 1,675 8,411 14,713 6,717 15,162
Reinvested...... 287 594 1,269 17,357 3,911 21,665
Redeemed........ (735) (1,245) (4,436) (6,988) (7,894) (10,626)
-------- -------- ---------- ---------- ---------- ----------
Net increase in
shares
outstanding..... 1,329 1,024 5,244 25,082 2,734 26,201
======== ======== ========== ========== ========== ==========
<CAPTION>
Short-Term
U.S.
Government
-------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
INCREASE
(DECREASE) IN
NET ASSETS
From Operations
Net investment
income......... $ 1,654 $ 1,653
Net realized
gain/(loss) on
sales of
investments.... (55) 6
Change in net
unrealized
appreciation/(depreciation)
of investments. (19) (606)
Foreign
Currency
Translation....
------------ ------------
Net increase in
net assets
resulting from
operations..... 1,580 1,053
Distributions to
Shareholders
From:
Net investment
income......... (1,654) (1,653)
Realized gain on
investments.... (11)
Capital Paid in.
------------ ------------
Decrease in net
assets
resulting from
distributions.. (1,654) (1,664)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 7,649 50,935
Distributions
reinvested..... 1,654 1,664
Payment for
shares
redeemed....... (4,825) (11,223)
------------ ------------
Increase from
trust share
transactions... 4,478 41,376
------------ ------------
NET INCREASE IN
NET ASSETS...... 4,404 40,765
NET ASSETS
Beginning of
Year........... 58,676 17,911
------------ ------------
End of Year..... $63,080 $ 58,676
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 763 5,041
Reinvested...... 165 166
Redeemed........ (481) (1,117)
------------ ------------
Net increase in
shares
outstanding..... 447 4,090
============ ============
</TABLE>
See notes to financial statements.
29
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small Cap International Equity
Value Opportunities Index
---------------------------- ---------------------------- ----------------------------
Unaudited Unaudited Unaudited
Six-Month Period from Six-Month Period from Six-Month Period from
Period Ended May 1, 1996 (*) Period Ended May 1, 1996 (*) Period Ended May 1, 1996 (*)
June 30, to December 31, June 30, to December 31, June 30, to December 31,
1997 1996 1997 1996 1997 1996
------------ --------------- ------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
From Operations
Net investment
income......... $ 56 $ 63 $ 135 $ 84 $ 320 $ 159
Net realized
gain/(loss) on
sales of
investments.... 432 217 180 (40) 618 89
Change in net
unrealized
appreciation/(depreciation)
of investments. 1,725 700 1,778 1,035 5,171 1,223
Foreign
Currency
Translation....
------- ------- ------- ------- ------- -------
Net increase in
net assets
resulting from
operations..... 2,213 980 2,093 1,079 6,109 1,471
Distributions to
Shareholders
From:
Net investment
income......... (56) (63) (135) (103) (320) (159)
Realized gain on
investments.... (217) (127)
Capital Paid in. (84)
------- ------- ------- ------- ------- -------
Decrease in net
assets
resulting from
distributions.. (56) (280) (135) (103) (320) (370)
Capital
Contribution... 94 84
Trust Share
Transactions
Proceeds from
shares sold.... 10,422 13,755 14,752 22,695 35,018 17,391
Distributions
reinvested..... 56 280 135 103 320 370
Payment for
shares
redeemed....... (2,838) (4,194) (8,289) (5,876) (3,536) (4,296)
------- ------- ------- ------- ------- -------
Increase from
trust share
transactions... 7,640 9,841 6,598 16,922 31,896 13,549
------- ------- ------- ------- ------- -------
NET INCREASE IN
NET ASSETS...... 9,797 10,541 8,556 17,898 37,685 14,650
NET ASSETS
Beginning of
Year........... 10,541 17,898 14,650
------- ------- ------- ------- ------- -------
End of Year..... $20,338 $10,541 $26,454 $17,898 $52,335 $14,650
======= ======= ======= ======= ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 950 1,357 1,356 2,253 2,915 1,681
Reinvested...... 5 26 12 10 26 34
Redeemed........ (260) (401) (783) (574) (299) (395)
------- ------- ------- ------- ------- -------
Net increase in
shares
outstanding..... 695 982 585 1,689 2,642 1,320
======= ======= ======= ======= ======= =======
<CAPTION>
Strategic
Bond
----------------------------
Unaudited
Six-Month Period from
Period Ended May 1, 1996 (*)
June 30, to December 31,
1997 1996
------------ ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
From Operations
Net investment
income......... $ 452 $ 529
Net realized
gain/(loss) on
sales of
investments.... 205 148
Change in net
unrealized
appreciation/(depreciation)
of investments. (119) 266
Foreign
Currency
Translation.... (1) (2)
------------ ---------------
Net increase in
net assets
resulting from
operations..... 537 941
Distributions to
Shareholders
From:
Net investment
income......... (452) (529)
Realized gain on
investments.... (150)
Capital Paid in.
------------ ---------------
Decrease in net
assets
resulting from
distributions.. (452) (679)
Capital
Contribution...
Trust Share
Transactions
Proceeds from
shares sold.... 10,166 19,757
Distributions
reinvested..... 452 679
Payment for
shares
redeemed....... (5,331) (7,791)
------------ ---------------
Increase from
trust share
transactions... 5,287 12,645
------------ ---------------
NET INCREASE IN
NET ASSETS...... 5,372 12,907
NET ASSETS
Beginning of
Year........... 12,907
------------ ---------------
End of Year..... $18,279 $12,907
============ ===============
Analysis of Trust
Share
Transactions:
Sold............ 1,003 1,963
Reinvested...... 45 67
Redeemed........ (524) (759)
------------ ---------------
Net increase in
shares
outstanding..... 524 1,271
============ ===============
</TABLE>
(*) Commencement of Investment Operations
See notes to financial statements.
30
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain (Loss) Investment Investment Gains on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Unaudited Period Ended
June 30, 1997... $17.49 $0.03 $2.97 $3.00 $(0.03) $ -- $ -- $(0.03)
Year Ended December 31,
1996............ 17.37 0.25 2.89 3.14 (0.25) (2.77) -- (3.02)
1995............ 14.41 0.44 4.06 4.50 (0.44) (0.84) (0.26) (1.54)
1994............ 15.38 0.39 (0.54) (0.15) (0.39) (0.43) -- (0.82)
1993............ 14.43 0.33 1.64 1.97 (0.33) (0.69) -- (1.02)
- --------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Unaudited Period Ended
June 30, 1997... 9.77 0.11 -- 0.11 (0.11) -- -- (0.11)
Year Ended December 31,
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- (0.74)
1995............ 9.19 0.71 1.03 1.74 (0.71) (0.09) -- (0.80)
1994............ 10.14 0.70 (0.95) (0.25) (0.70) -- -- (0.70)
1993............ 9.84 0.73 0.30 1.03 (0.73) -- -- (0.73)
- --------------------------------------------------------------------------------------------------------------------------
International Equities
Unaudited Period Ended
June 30, 1997... 16.83 0.07 1.74 1.81 (0.07) -- -- (0.07)
Year Ended December 31,
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- (0.21)
1995............ 14.62 0.17 0.99 1.16 (0.16) -- (0.01) (0.17)
1994............ 15.85 0.12 (1.10) (0.98) (0.12) (0.13) -- (0.25)
1993............ 12.25 0.03 3.91 3.94 (0.03) (0.31) -- (0.34)
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Unaudited Period Ended
June 30, 1997... 9.93 0.01 0.56 0.57 (0.01) -- -- (0.01)
Period from May 1, to
December 31,
1996 (c)....... 10.00 0.01 (0.06) (0.05) (0.02) -- -- (0.02)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio Average
End (000's Investment (000's Average Average Turnover Commission
of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate Rate(t)
--------- ----------- ------------ ------------- -------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Unaudited Period Ended
June 30, 1997... $20.46 31,672 17.49%(e) $648,109 0.44%(d) 0.86%(d) 52.26%(e) $0.04
Year Ended December 31,
1996............ 17.49 29,965 18.27% 524,145 0.44% 1.35% 135.98% 0.04
1995............ 17.37 21,895 31.64% 380,276 0.47% 2.70% 90.18%
1994............ 14.41 15,546 (0.98%) 223,957 0.47% 2.69% 80.51%
1993............ 15.38 9,833 13.80% 151,207 0.50% 2.21% 61.53%
- --------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Unaudited Period Ended
June 30, 1997... 9.77 76,387 3.62%(e) 746,057 0.33%(d) 7.18%(d) 67.36%(e) --
Year Ended December 31,
1996............ 9.77 74,315 4.10% 726,111 0.29% 7.07% 119.12% --
1995............ 10.13 69,148 19.55% 700,309 0.30% 7.20% 63.31% --
1994............ 9.19 63,907 (2.57%) 587,077 0.29% 7.27% 21.80% --
1993............ 10.14 61,046 10.77% 619,200 0.28% 7.22% 21.05% --
- --------------------------------------------------------------------------------------------------------------------------
International Equities
Unaudited Period Ended
June 30, 1997... 18.57 9,416 11.18%(e) 174,843 0.77%(d) 1.59%(d) 33.71%(e) 0.02
Year Ended December 31,
1996............ 16.83 9,254 9.19% 155,753 0.76% 1.30% 92.03% 0.02
1995............ 15.61 8,123 8.01% 126,803 0.84%(g) 1.34% 65.82% --
1994............ 14.62 8,162 (6.26%) 119,331 0.85%(g) 0.85% 78.21% --
1993............ 15.85 3,574 32.08% 56,652 0.85%(g) 0.26% 65.57% --
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Unaudited Period Ended
June 30, 1997... 10.49 3,131 5.66%(e) 32,843 1.00%(d)(k) 0.08%(d) 51.22%(e) 0.07
Period from May 1, to
December 31,
1996 (c)....... 9.93 2,077 (0.50%)(e) 20,633 1.00%(d)(k) 0.12%(d) 50.93%(e) 0.07
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain (Loss) Investment Investment Gains on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International Balanced
Unaudited Period Ended
June 30, 1997... $10.39 $0.08 $0.56 $0.64 $(0.08) $ -- $ -- $(0.08)
Period from May 1, to
December 31,
1996 (c)....... 10.00 0.24 0.41 0.65 (0.24) (0.02) -- (0.26)
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period Ended
June 30, 1997... 10.22 -- 0.42 0.42 -- -- -- --
Period from May 1, to
December 31,
1996 (c)....... 10.00 0.05 0.22 0.27 (0.05) -- -- (0.05)
- --------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Unaudited Period Ended
June 30, 1997... 11.09 0.06 1.47 1.53 (0.06) -- -- (0.06)
Period from May 1, to
December 31,
1996 (c)....... 10.00 0.16 1.22 1.38 (0.16) (0.13) -- (0.29)
- --------------------------------------------------------------------------------------------------------------------------
Money Market
Unaudited Period Ended
June 30, 1997... 10.00 0.09 -- 0.09 (0.09) -- -- (0.09)
Year Ended December 31,
1996............ 10.00 0.52 -- 0.52 (0.52) -- -- (0.52)
1995............ 10.00 0.57 -- 0.57 (0.57) -- -- (0.57)
1994............ 10.00 0.40 -- 0.40 (0.40) -- -- (0.40)
1993............ 10.00 0.30 -- 0.30 (0.30) -- -- (0.30)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio Average
End (000's Investment (000's Average Average Turnover Commission
of Period Omitted) Return (b) Omitted) Net Assets Net Assets Rate Rate(t)
--------- ----------- ----------- ------------- -------------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International Balanced
Unaudited Period Ended
June 30, 1997... $10.95 2,360 7.13%(e) $25,838 1.10%(d)(l) 3.40%(d) 40.94%(e) $0.03
Period from May 1, to
December 31,
1996 (c)....... 10.39 2,319 6.73%(e) 24,098 1.10%(d)(l) 3.59%(d) 22.21%(e) 0.02
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period Ended
June 30, 1997... 10.64 2,552 4.13%(e) 27,169 1.10%(d)(m) (0.07%)(d) 51.79%(e) 0.04
Period from May 1, to
December 31,
1996 (c)....... 10.22 1,613 2.69%(e) 16,492 1.10%(d)(m) 0.92%(d) 71.25%(e) 0.03
- --------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Unaudited Period Ended
June 30, 1997... 12.56 3,446 14.65%(e) 43,278 1.00%(d)(n) 1.93%(d) 11.31%(e) 0.03
Period from May 1, to
December 31,
1996 (c)....... 11.09 1,784 13.90%(e) 19,781 1.00%(d)(n) 2.74%(d) 19.95%(e) 0.03
- --------------------------------------------------------------------------------------------------------------------------
Money Market
Unaudited Period Ended
June 30, 1997... 10.00 22,279 2.62%(e) 222,790 0.32%(d) 5.21%(d) -- --
Year Ended December 31,
1996............ 10.00 21,324 5.32% 213,235 0.30% 5.20% -- --
1995............ 10.00 18,591 5.78% 185,909 0.35% 5.62% -- --
1994............ 10.00 14,867 4.03% 148,668 0.32% 4.05% -- --
1993............ 10.00 11,618 3.06% 116,190 0.35% 3.01% -- --
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain/(Loss) Investment Investment Gains on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Value
Unaudited Period Ended
June 30, 1997... $11.35 $0.01 $1.74 $1.75 $(0.01) $ -- $ -- $(0.01)
Period from May 1, to
December 31,
1996 (c)........ 10.00 0.04 1.57 1.61 (0.04) (0.22) -- (0.26)
- --------------------------------------------------------------------------------------------------------------------------
Special Opportunities
Unaudited Period Ended
June 30, 1997... 16.52 -- (1.04) (1.04) -- -- -- --
Year Ended December 31,
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- (0.67)
1995............ 9.94 (0.01) 3.58 3.57 -- (0.32) (0.01) (0.33)
Period from May 1, to
December 31,
1994 (c)........ 10.00 0.11 (0.06) 0.05 -- (0.11) -- (0.11)
- --------------------------------------------------------------------------------------------------------------------------
Real Estate Equity
Unaudited Period Ended
June 30, 1997... $14.64 0.17 0.43 0.60 (0.17) -- -- (0.17)
Year Ended December 31,
1996............ 11.70 0.76 2.97 3.73 (0.76) (0.03) -- (0.79)
1995............ 11.16 0.77 0.54 1.31 (0.77) -- -- (0.77)
1994............ 11.52 0.66 (0.34) 0.32 (0.66) (0.02) -- (0.68)
1993............ 10.27 0.52 1.26 1.78 (0.52) (0.01) -- (0.53)
- --------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period Ended
June 30, 1997... 14.65 0.05 2.31 2.36 (0.05) -- -- (0.05)
Year Ended December 31,
1996............ 13.94 0.34 2.43 2.77 (0.34) (1.72) -- (2.06)
1995............ 11.50 0.36 3.53 3.89 (0.36) (1.09) -- (1.45)
1994............ 12.39 0.34 (0.41) (0.07) (0.34) (0.48) -- (0.82)
1993............ 11.99 0.32 1.27 1.59 (0.32) (0.87) -- (1.19)
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio Average
End (000's Investment (000's Average Average Turnover Commission
of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate Rate(t)
--------- ----------- ------------ ------------- -------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Value
Unaudited Period Ended
June 30, 1997... $13.09 1,906 15.54%(e) 24,957 1.05%(d)(o) 0.36%(d) 36.30%(e) $0.06
Period from May 1, to
December 31,
1996 (c)........ 11.35 963 16.16%(e) 10,926 1.05%(d)(o) 0.69%(d) 62.99%(e) 0.06
- --------------------------------------------------------------------------------------------------------------------------
Special Opportunities
Unaudited Period Ended
June 30, 1997... 15.48 13,447 (6.21%)(e) 208,218 0.65%(d) 0.12%(d) 192.12%(e) 0.06
Year Ended December 31,
1996............ 16.52 11,749 30.33% 194,108 0.84% 0.18% 217.84% 0.06
1995............ 13.18 4,133 35.96% 54,486 1.00%(h) (0.11%) 139.31% --
Period from May 1, to
December 31,
1994 (c)........ 9.94 722 0.56%(e) 7,181 1.00%(d)(h) 1.51%(d) 26.54%(e) --
- --------------------------------------------------------------------------------------------------------------------------
Real Estate Equity
Unaudited Period Ended
June 30, 1997... 15.07 11,654 5.62%(e) 175,593 0.68%(d) 2.62%(d) 8.71%(e) 0.05
Year Ended December 31,
1996............ 14.64 10,325 33.07% 151,105 0.69% 6.14% 18.37% 0.04
1995............ 11.70 9,301 12.31% 108,782 0.73% 6.85% 19.81%
1994............ 11.16 10,178 2.86% 113,545 0.71% 5.94% 22.36%
1993............ 11.52 7,061 17.29% 81,306 0.83% 4.80% 9.79%
- --------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period Ended
June 30, 1997... 16.96 144,992 16.74%(e) 2,458,453 0.28%(d) 1.79%(d) $36.47%(e) 0.05
Year Ended December 31,
1996............ 14.65 139,748 20.10% 2,047,927 0.27% 2.24% 81.02% 0.04
1995............ 13.94 114,666 34.21% 1,598,585 0.28% 2.70% 73.54%
1994............ 11.50 97,361 (0.56%) 1,119,864 0.27% 2.80% 64.12%
1993............ 12.39 84,788 13.33% 1,050,349 0.28% 2.56% 70.27%
</TABLE>
33
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain (Loss) Investment Investment Gains on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed
Unaudited Period Ended
June 30, 1997... $13.35 $0.10 $0.88 $0.98 $(0.10) $-- $-- $(0.10)
Year Ended December 31,
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- (1.80)
1995............ 11.96 0.62 2.56 3.18 (0.62) (0.79) -- (1.41)
1994............ 12.81 0.55 (0.83) (0.28) (0.55) (0.02) -- (0.57)
1993............ 12.41 0.52 0.90 1.42 (0.52) (0.50) -- (1.02)
- --------------------------------------------------------------------------------------------------------------------------
Short-Term U.S. Government
Unaudited Period Ended
June 30, 1997... 10.05 0.10 (0.02) 0.08 (0.10) -- -- (0.10)
Year Ended December 31,
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- (0.54)
1995............ 9.66 0.50 0.59 1.09 (0.50) (0.02) -- (f) (0.52)
Period from May 1,
to December 31,
1994 (c)....... 10.00 0.37 (0.34) 0.03 (0.37) -- -- (0.37)
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period Ended
June 30, 1997... 10.73 0.02 1.39 1.41 (0.02) -- -- (0.02)
Period from May 1,
to December 31,
1996 (c)....... 10.00 0.07 0.96 1.03 (0.07) (0.23) -- (0.30)
- --------------------------------------------------------------------------------------------------------------------------
International Opportunities
Unaudited Period Ended
June 30, 1997... 10.60 0.03 1.04 1.07 (0.04) -- -- (0.04)
Period from May 1,
to December 31,
1996 (c)....... 10.00 0.07 0.60 0.67 (0.07) -- -- (0.07)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio Average
End (000's Investment (000's Average Average Turnover Commission
of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate Rate(t)
--------- ----------- ----------- ------------- -------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed
Unaudited Period Ended
June 30, 1997... $14.23 181,479 8.90%(e) $2,582,159 0.37%(d) 4.36%(d) 112.69%(e) $0.05
Year Ended December 31,
1996............ 13.35 178,745 10.72% 2,386,660 0.36% 4.41% 113.61% 0.06
1995............ 13.73 152,544 27.09% 2,093,964 0.38% 4.66% 187.67%
1994............ 11.96 134,588 (2.23%) 1,609,939 0.37% 4.50% 90.41%
1993............ 12.81 116,985 11.60% 1,498,876 0.38% 4.07% 63.74%
- --------------------------------------------------------------------------------------------------------------------------
Short-Term U.S. Government
Unaudited Period Ended
June 30, 1997... 10.03 6,287 2.62%(e) 63,080 0.55%(d)(j) 5.47%(d) 12.96%(e) --
Year Ended December 31,
1996............ 10.05 5,840 3.61% 58,676 0.75%(d)(j) 5.66%(d) 20.29% --
1995............ 10.23 1,750 11.49% 17,911 0.75%(j) 5.52% 109.77%
Period from May 1,
to December 31,
1994 (c)....... 9.66 178 0.33%(e) 1,718 0.75%(d)(j) 5.82%(d) 11.22%(e)
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period Ended
June 30, 1997... 12.12 1,678 13.40%(e) 20,338 1.05%(d)(p) 0.77%(d) 58.02%(e) 0.06
Period from May 1,
to December 31,
1996 (c)....... 10.73 982 10.33%(e) 10,541 1.05%(d)(p) 1.15%(d) 66.31%(e) 0.06
- --------------------------------------------------------------------------------------------------------------------------
International Opportunities
Unaudited Period Ended
June 30, 1997... 11.63 2,274 10.53%(e) 26,454 1.25%(d)(q) 1.45%(d) 8.11%(e) 0.03
Period from May 1,
to December 31,
1996 (c)....... 10.60 1,689 6.72%(e) 17,898 1.25%(d)(q) 0.87%(d) 5.46%(e) 0.03
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- -------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain (Loss) Investment Investment Gains on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Index
Unaudited Period
Ended June 30,
1997............ $11.10 $0.05 $2.11 $2.16 $(0.05) $ -- $ -- $(0.05)
Period from May 1,
to December 31,
1996 (c)........ 10.00 0.15 1.26 1.41 (0.15) (0.10) (0.06) (0.31)
- --------------------------------------------------------------------------------------------------------------------------
Strategic Bond
Unaudited Period
Ended June 30,
1997............ 10.16 0.10 0.02 0.12 (0.10) -- -- (0.10)
Period from May 1,
to December 31,
1996 (c)........ 10.00 0.38 0.28 0.66 (0.38) (0.12) -- (0.50)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio Average
End (000's Investment (000's Average Average Turnover Commission
of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate Rate(t)
--------- ----------- -------------- ------------- -------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Index
Unaudited Period
Ended June 30,
1997............ $13.21 3,962 20.17%(e)(v) $52,335 0.00%(d)(r) 2.09%(d) 33.55%(e) $0.02
Period from May 1,
to December 31,
1996 (c)........ 11.10 1,320 14.23%(e)(u) 14,650 0.00%(d)(r) 2.47%(d) 15.72%(e) 0.02
- --------------------------------------------------------------------------------------------------------------------------
Strategic Bond
Unaudited Period
Ended June 30,
1997............ 10.18 1,795 3.27%(e) 18,279 1.00%(d)(s) 6.02%(d) 55.74%(e) --
Period from May 1,
to December 31,
1996 (c)........ 10.16 1,271 3.71%(e) 12,907 1.00%(d)(s) 6.05%(d) 171.39%(e) --
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) The amount shown at this caption for each share outstanding throughout the
year may not accord with the change in the aggregate gains and losses in
the portfolio securities for the year because of the timing of the
purchases and withdrawals of the shares in relation to the fluctuation
market values of the portfolio.
(b) The performance of the portfolios shown on this page does not reflect
expenses and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product's prospectus.
(c) Commencement of investment operations.
(d) Annualized.
(e) Not annualized.
(f) Amount is less than a penny per share.
(g) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .87%, .87%, and 1.13% for the
years ended December 31, 1995, 1994, 1993, respectively.
(h) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.91%, and 6.05% for the years
ended December 31, 1995, and 1994, respectively.
(j) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .60% for the period ended June
30, 1997, and .79%, 1.83%, and 13.60%, for the years ended December 31,
1996, 1995, and 1994, respectively.
(k) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.15% for the period ended
June 30, 1997, and 1.55%, for the year ended December 31, 1996.
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.36% for the period ended
June 30, 1997, and 1.44% for the year ended December 31, 1996.
35
<PAGE>
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.47% for the period ended
June 30, 1997, and 2.34%, for year ended December 31, 1996.
(n) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.04% for the period ended
June 30, 1997, and 2.74%, for the year ended December 31, 1996.
(o) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.29% for the period ended
June 30, 1997, and 2.15%, for the year ended December 31, 1996.
(p) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.39% for the period ended
June 30, 1997, and 2.06%, for the year ended December 31, 1996.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.44% for the period ended
June 30, 1997, and 2.76%, for the year ended December 31, 1996.
(r) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .62% for the period ended June
30, 1997, and 1.85%, for the year ended December 31, 1996.
(s) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.24% for the period ended
June 30, 1997, and 1.57%, for the year ended December 31, 1996.
(t) Average Commission rate is calculated for equity funds with a fiscal year
beginning on or after September 1, 1995.
(u) The Total Return includes the effect of the capital contribution of $.06
per share. The total Investment Return without the capital contribution
would have been 13.59%.
(v) The Total Return includes the effect of the capital contribution of $.02
per share. The total Investment Return without the capital contribution
would have been 19.95%.
36
<PAGE>
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace-3.0%
Northrop Grumman Corp. .......................... 58,200 $ 5,111
United Technologies Corp. ....................... 169,600 14,077
-------
19,188
Automotive and Rubber-0.6%
Ford Motor Co. .................................. 99,300 3,749
General Motors Corp. ............................ 2,600 145
-------
3,894
Banks and Finance-2.0%
BankAmerica Corp. ............................... 133,600 8,626
Chase Manhattan Corp. ........................... 21,100 2,048
MBNA Corp. ...................................... 64,300 2,355
-------
13,029
Chemicals-2.8%
Air Products & Chemicals, Inc. .................. 93,400 7,589
E.I. du Pont de Nemours & Co. ................... 32,800 2,062
Monsanto Co. .................................... 105,100 4,526
Praxair, Inc. ................................... 69,600 3,898
-------
18,075
Computer Software and Services-9.0%
Adobe Systems, Inc. ............................. 78,400 2,749
Cadence Design Systems, Inc. * .................. 172,000 5,762
Computer Associates International, Inc. ......... 124,200 6,916
Electronic Data Systems Corp. ................... 124,000 5,084
Microsoft Corp. ................................. 186,600 23,581
Oracle Corp. * .................................. 115,000 5,793
Parametric Technology Co. * ..................... 140,900 5,997
Peoplesoft, Inc. ................................ 28,900 1,524
Policy Management Systems Corp. * ............... 24,400 1,147
-------
58,553
Computers & Office Equipment-7.0%
Cisco Systems, Inc. * ........................... 83,000 5,571
Compaq Computer Corp. * ......................... 112,200 11,136
Dell Computer Corp. * ........................... 14,900 1,750
Hewlett-Packard Co. ............................. 198,800 11,133
Komag, Inc. * ................................... 44,600 730
Pitney Bowes, Inc. .............................. 23,700 1,647
Sun Microsystems, Inc. * ........................ 85,400 3,178
Xerox Corp. ..................................... 128,400 10,128
-------
45,273
Diversified Operations-7.8%
Corning, Inc. ................................... 59,500 3,310
General Electric Co. ............................ 519,000 33,929
Raychem Corp. ................................... 102,400 7,616
Textron, Inc. ................................... 82,300 5,463
Trinity Industries, Inc. ........................ 400 13
-------
50,331
Electronic Products-5.5%
Analog Devices, Inc. * .......................... 53,800 1,429
Applied Materials, Inc. * ....................... 60,000 4,249
Honeywell, Inc. ................................. 85,300 6,472
Intel Corp. ..................................... 154,600 21,924
Mentor Graphics Corp. * ......................... 142,300 1,316
-------
35,390
</TABLE>
37
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Financial Services-1.3%
American Express Co. .............................. 14,100 $ 1,050
Morgan Stanley, Dean Witter, Discover & Co. ....... 176,500 7,601
--------
8,651
Food, Beverage and Tobacco-5.2%
ConAgra, Inc. ..................................... 61,100 3,918
General Mills, Inc. ............................... 225,400 14,679
Philip Morris Cos., Inc. .......................... 227,400 10,091
UST, Inc. ......................................... 169,600 4,706
--------
33,394
Foreign-1.2%
Glaxo Wellcome plc - ADR .......................... 186,600 7,802
Health Products and Services-22.1%
Abbott Laboratories ............................... 220,900 14,745
Allegiance Corp. .................................. 125,400 3,417
Alza Corp. * ...................................... 131,700 3,819
Amgen, Inc. * ..................................... 61,100 3,551
Becton, Dickinson & Co. ........................... 41,400 2,096
Biogen, Inc. * .................................... 25,800 874
Bristol-Myers Squibb Co. .......................... 112,800 9,137
Cardinal Health, Inc. ............................. 68,700 3,933
Chiron Corp. * .................................... 71,100 1,484
Columbia/HCA Healthcare Corp. ..................... 86,600 3,404
Guidant Corp. ..................................... 97,900 8,322
Health Management Associates, Inc. - Cl. A* ....... 106,200 3,027
HEALTHSOUTH Corp. * ............................... 293,200 7,312
Johnson & Johnson ................................. 336,200 21,643
Medtronic, Inc. ................................... 50,300 4,074
Merck & Co., Inc. ................................. 289,700 29,983
Schering-Plough Corp. ............................. 182,200 8,723
United Healthcare Corp. ........................... 45,000 2,340
Warner-Lambert Co. ................................ 88,500 10,996
--------
142,880
Insurance-4.9%
Cigna Corp. ....................................... 41,700 7,402
Equitable Cos., Inc. .............................. 57,400 1,909
General Re Corp. .................................. 57,700 10,501
Hartford Financial Services Group, Inc. ........... 72,300 5,983
Marsh & McLennan Cos., Inc. ....................... 86,400 6,167
--------
31,962
Lodging and Restaurants-2.8%
HFS, Inc. * ....................................... 157,400 9,129
Hilton Hotels Corp. ............................... 167,700 4,455
Promus Hotel Corp. * .............................. 119,900 4,646
--------
18,230
Machinery and Equipment-2.0%
Allied Signal, Inc. ............................... 47,000 3,948
Cooper Industries, Inc. ........................... 45,400 2,259
Durco International, Inc. ......................... 24,300 711
Perkin-Elmer Corp. ................................ 72,600 5,776
--------
12,694
</TABLE>
38
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Media-0.8%
CUC International, Inc. * ............................. 89,700 $ 2,315
Time Warner, Inc. ..................................... 63,100 3,045
-------
5,360
Metals and Mining-0.4%
Precision Castparts Corp. ............................. 38,600 2,302
Miscellaneous-1.4%
Avery Dennison Corp. .................................. 126,200 5,064
Ikon Office Solutions, Inc. ........................... 152,700 3,808
-------
8,872
Oils and Natural Gas Equipment and Services-1.7%
Baker Hughes, Inc. .................................... 65,700 2,542
Cooper Cameron Corp. * ................................ 41,400 1,935
Dresser Industries, Inc. .............................. 108,800 4,053
Halliburton Co. ....................................... 18,300 1,450
Rowan Cos., Inc. * .................................... 45,100 1,271
-------
11,251
Oils and Natural Gas Exploration and Production-3.5%
Anadarko Petroleum Corp. .............................. 80,900 4,854
Consolidated Natural Gas Co. .......................... 26,000 1,399
El Paso Natural Gas Co. ............................... 44,500 2,448
Kerr-McGee Corp. ...................................... 47,200 2,991
Phillips Petroleum Co. ................................ 180,600 7,901
Unocal Corp. .......................................... 59,900 2,325
USX-Marathon Group .................................... 29,900 863
-------
22,781
Paper and Forest Products-0.5%
James River Corp. of Virginia ......................... 86,000 3,182
Photography and Related Services-0.8%
Eastman Kodak Co. ..................................... 69,300 5,319
Pollution Control Equipment and Services-0.4%
USA Waste Services, Inc. * ............................ 73,200 2,827
Real Estate Development-0.3%
Clayton Homes, Inc. ................................... 99,500 1,418
Del E. Webb Corp. ..................................... 35,600 579
-------
1,997
Retail-7.2%
Costco Cos., Inc. * ................................... 171,100 5,625
Home Depot, Inc. ...................................... 242,000 16,683
Liz Claiborne, Inc. ................................... 38,600 1,800
Lowe's Cos., Inc. ..................................... 164,600 6,111
Nike, Inc. - Cl. B .................................... 46,700 2,726
Nine West Group, Inc. * ............................... 71,800 2,742
Safeway, Inc. * ....................................... 19,200 886
Staples, Inc. * ....................................... 123,700 2,876
TJX Cos., Inc. ........................................ 160,200 4,225
Wal-Mart Stores, Inc. ................................. 33,800 1,143
Warnaco Group, Inc. - Cl. A ........................... 64,700 2,062
-------
46,879
Soap, Cosmetics and Personal Care-0.2%
Revlon, Inc. * ........................................ 30,300 1,570
Telecommunications-0.7%
Lucent Technologies, Inc. ............................. 66,801 4,814
</TABLE>
39
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Textiles-1.7%
Fruit of the Loom, Inc. - Cl. A* .............. 131,800 $ 4,086
Tommy Hilfiger Corp.* ......................... 35,900 1,443
WestPoint Stevens, Inc.* ...................... 142,800 5,587
-------
11,116
Transportation-0.4%
Southwest Airlines Co. ........................ 101,700 2,631
Utilities - Electric-1.0%
CINergy Corp. ................................. 100,200 3,488
Dominion Resources, Inc. ...................... 76,100 2,787
-------
6,275
Utilities - Telecommunications-0.7%
AT & T Corp. .................................. 62,900 2,205
GTE Corp. ..................................... 54,600 2,396
-------
4,601
-------
TOTAL COMMON STOCK- 98.9% 641,123
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-2.3%
Investment in joint trading account (Note B)
5.81% due 7/01/97............................ $ 14,751 14,757
---------- ----------
TOTAL INVESTMENTS- 101.2% 655,880
Payables, less cash and receivables - (1.2)% (7,771)
---------- ----------
NET ASSETS- 100.0% $ 648,109
========== ==========
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
40
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Aerospace-0.3%
Jet Equipment Trust - Cert. 1995-B 144A (a)
10.91% due 8/15/14 .................................. $ 2,100 $ 2,446
Automotive and Rubber-0.9%
Ford Motor Co. - Notes
9.00% due 9/15/01 ................................... 2,000 2,166
General Motors Corp. - Notes
9.625% due 12/01/00 ................................. 4,000 4,360
-------
6,526
Banks and Finance-2.7%
ABN Amro Bank NV (Chicago) - Global Bond
7.25% due 5/31/05 ................................... 2,400 2,422
Bank of New York - Bonds 144A (a)
7.78% due 12/01/26 .................................. 2,515 2,424
Banque National de Paris - NY - Sub. Notes
7.20% due 1/15/07 ................................... 2,315 2,301
Greenpoint Capital Trust I - Bonds 144A (a)
9.10% due 6/01/27 ................................... 1,575 1,581
National Westminister Bank, NY - Sub. Notes
9.45% due 5/01/01 ................................... 5,000 5,453
RBSG Capital Corp. - Gtd. Cap. Notes
10.125% due 3/01/04 ................................. 5,000 5,751
-------
19,932
Diversified Operations-0.3%
Tenneco, Inc. - Debs
10.075% due 2/01/01 ................................. 2,000 2,206
Financial Services-18.1%
American Express Credit Corp. - Debs.
8.625% due 5/15/22 .................................. 6,000 6,217
American Express Credit Corp. - Sr. Notes
8.50% due 6/15/99 ................................... 6,000 6,223
Banc One Credit Card Master Trust - Ser. 1994-B Cl. A
7.55% due 12/15/99 .................................. 2,200 2,218
Barclays North America Capital Corp. - Gtd. Bonds
9.75% due 5/15/21 ................................... 4,650 5,256
Beneficial Corp. - Med. Term Notes
9.60% due 7/19/00 ................................... 4,000 4,324
Commercial Credit Group, Inc. - Notes
6.00% due 4/15/00 ................................... 7,000 6,898
10.00% due 5/01/99 .................................. 5,000 5,306
Conseco, Inc. - Sr. Notes
10.50% due 12/15/04 ................................. 3,140 3,668
Constitution Capital Trust I - Cap. Secs. 144A (a)
9.15% due 4/15/27 ................................... 1,815 1,820
Contifinancial Corp. - Sr. Notes
8.375% due 8/15/03 .................................. 1,755 1,792
CS First Boston - Sub. Notes 144A (a)
7.75% due 5/15/06 ................................... 2,125 2,156
EQCC Home Equity Loan Trust - Ser. 1997-1 Cl. A7
7.12% due 1/15/27 ................................... 8,000 8,088
Fairfax Financial Holdings - Bonds
8.30% due 4/15/26 ................................... 2,960 3,056
First Plus Home Loan Trust - Ser. 1997-1 Cl. A6
6.95% due 12/10/15 .................................. 2,925 2,915
Fletcher Challenge Finance USA, Inc. - Gtd. Notes
9.80% due 6/15/98 ................................... 5,000 5,166
Green Tree Home Improvement Loan Trust - 1995-D
6.95% due 9/15/25 ................................... 2,570 2,560
</TABLE>
41
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Financial Services-Continued
Green Tree Home Improvement Loan Trust - Ser. 1996-F Cl. HIA3
6.75% due 11/15/27 ....................................... $ 1,355 $ 1,333
Green Tree Home Improvement Loan Trust - Ser. 1997-A Cl. HIA3
7.05% due 8/15/23 ........................................ 2,520 2,530
Harvard University - Gen'l Oblig
8.125% due 4/15/07 ....................................... 5,000 5,428
MBNA Master Credit Card Trust - Asset Bkd. Ser. 1995-D
6.05% due 11/15/02 ....................................... 7,000 6,933
Merrill Lynch & Co., Inc. - Med. Term Notes
7.75% due 3/01/99 ........................................ 3,000 3,066
Morgan Stanley Group, Inc. - Notes
8.875% due 10/15/01 ...................................... 3,000 3,228
Residential Accredit Loans, Inc. - Ser. 1997-QS2 Cl. A4
7.25% due 3/28/27 ........................................ 3,160 3,157
State Street Institutional Capital - Bonds Ser. B 144A (a)
8.035% due 3/15/27 ....................................... 2,490 2,496
Structured Assets Securities Corp. - Ser. 1993-C
6.60% due 12/25/24 ....................................... 6,000 5,983
Structured Assets Securities Corp. - Ser. 1993-C1
6.60% due 10/25/24 ....................................... 589 587
Termoemcali Funding Corp. - Sec. Bonds 144A (a)
10.125% due 12/15/14 ..................................... 1,610 1,747
Texaco Capital, Inc. - Debs.
8.625% due 6/30/10 ....................................... 10,000 11,292
UCFC Home Equity Loan - Ser. 1996-A1
6.50% due 4/15/16 ........................................ 7,652 7,513
UCFC Home Equity Loan - Ser. 1997-A1 Cl. A8
7.22% due 6/15/28 ........................................ 6,910 6,975
United Companies Financial Corp. - Notes
7.70% due 1/15/04 ........................................ 2,535 2,523
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 6/30/06 ....................................... 2,780 2,870
-------
135,324
Food, Beverage and Tobacco-0.5%
RJR Nabisco, Inc. - Notes
7.625% due 9/15/03 ..................................... 2,120 2,052
8.625% due 12/01/02 .................................... 1,535 1,571
-------
3,623
Foreign-11.0%
Abbey National First Capital BV - Gtd. Sub. Notes
8.20% due 10/15/04 ..................................... 4,000 4,264
Camuzzi Gas - Bonds 144A (a)
9.25% due 12/15/01 ..................................... 1,386 1,455
Comicion Federal De Electricity - Notes 144A (a)
10.16% due 12/23/09 .................................... 2,020 2,093
Comp Paranaense de Energ - Unsub. Bonds 144A (a)
9.75% due 5/02/05 ...................................... 1,140 1,180
CSN Iron SA - Bonds 144A (a)
9.125% due 6/01/07 ..................................... 2,175 2,114
CSW Investments - Sr. Notes 144A (a)
7.45% due 8/01/06 ...................................... 1,800 1,811
Dao Heng Bank, Ltd. - Sub. Notes 144A (a)
7.75% due 1/24/07 ...................................... 3,820 3,820
Enersis SA - Notes
7.40% due 12/01/16 ..................................... 3,490 3,351
Hydro-Quebec - Debs.
7.375% due 2/01/03 ..................................... 1,000 1,020
</TABLE>
42
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Foreign-Continued
Hydro-Quebec - Debs. Ser. FV
11.75% due 2/01/12 ..................................... $ 5,000 $ 6,911
Hydro-Quebec - Debs. Ser. HS
9.40% due 2/01/21 ...................................... 3,950 4,689
Indah Kiat Finance Mautitius - Bonds 144A (a)
10.00% due 7/01/07 ..................................... 3,700 3,705
Indah Kiat International Finance - Bonds
12.50% due 6/15/06 ..................................... 1,422 1,612
Interamerican Development Bank - Debs
8.50% due 3/15/11 ...................................... 6,000 6,784
International Bank of Reconstruction & Development - Debs
8.25% due 9/01/16 ...................................... 2,150 2,424
Jasmine Submarine Telecom - Sr. Notes 144A (a)
8.483% due 5/30/11 ..................................... 2,305 2,311
Landeskreditbank Baden Wuerttemberg - Sub. Notes
7.625% due 2/01/23 ..................................... 3,150 3,279
Norsk Hydro A/S - Debs
7.50% due 10/01/16 ..................................... 2,375 2,393
Opp Petroquimica SA - Unsec. Sr. Notes 144A (a)
11.00% due 10/29/04 .................................... 2,795 2,910
Petroleos Mexicanos - Bonds 144A (a)
9.00% due 6/01/07 ...................................... 2,720 2,764
Petroliam Nasional Berhad - Unsub. Bonds 144A (a)
7.625% due 10/15/26 .................................... 2,550 2,551
Puget Sound Energy Capital Trust I - Bonds 144A (a)
8.231% due 6/01/27 ..................................... 1,440 1,462
Rogers Cablesystems - Sr. Notes
10.00% due 3/15/05...................................... 3,030 3,265
Santander Finance Issuances, Ltd. - Sub. Notes
7.875% due 4/15/05 ..................................... 2,510 2,611
Sun Canada Financial Co. - Bonds 144A (a)
6.625% due 12/15/07 .................................... 3,345 3,182
Telewest plc - Sr. Notes
9.625% due 10/01/06 .................................... 1,603 1,675
Tenaga Nasional Berhad - Notes 144A (a)
7.875% due 6/15/04 ..................................... 2,425 2,535
Vicap SA - Bonds 144A (a)
11.375% due 5/15/07 .................................... 2,035 2,126
Yanacocha - Pass thru Certs. 144A (a)
8.40% due 6/15/05 ...................................... 1,880 1,922
-------
82,219
Foreign Governmental-3.1%
City of Moscow - Debs. 144A (a)
9.50% due 5/31/00 ...................................... 2,580 2,609
Croatia - Bonds 144A (a)
7.00% due 2/27/02 ...................................... 2,245 2,186
Manitoba Province of Canada - Debs. Ser. CD
9.25% due 4/01/20 ...................................... 2,000 2,418
Manitoba Province of Canada - US Debs. Ser. CK
9.00% due 12/15/00 ..................................... 3,000 3,227
Province of Nova Scotia - Debs
8.75% due 4/01/22 ...................................... 3,000 3,432
Province of Ontario, Canada - Bonds
5.70% due 10/01/97 ..................................... 5,000 4,996
Province of Saskatchewan - Govt. Gtd. Bonds
9.375% due 12/15/20 .................................... 1,500 1,818
Republic of Panama - Notes 144A (a)
7.875% due 2/13/02 ..................................... 2,132 2,121
-------
22,807
</TABLE>
43
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Government Agencies-5.3%
Federal Home Loan Mortgage Corp.
6.00% due 10/15/08 - 6/15/11 ......................... $12,515 $11,711
Federal Home Loan Mortgage Corp.
6.50% due 12/15/23 ................................... 2,725 2,549
Federal Home Loan Mortgage Corp.
8.00% due 4/15/19 .................................... 190 190
Federal National Mortgage Assoc
7.00% due 3/01/12 .................................... 7,820 7,803
Government National Mortgage Assoc
8.00% due 2/15/25 - 1/15/26 .......................... 10,205 10,424
Government National Mortgage Assoc
8.50% due 9/15/21 .................................... 1,847 1,918
Government National Mortgage Assoc
9.00% due 5/15/21 - 8/15/21 .......................... 2,852 3,012
Government National Mortgage Assoc
9.50% due 6/15/16 .................................... 1,123 1,210
Resolution Trust Corp. - Ser. 1993-3
7.25% due 10/25/23 ................................... 958 955
Resolution Trust Corp. - Ser. 92-C4
8.15% due 6/25/24 .................................... 102 102
-------
39,874
Health Products and Services-0.4%
Quest Diagnostic, Inc. - Bonds
10.75% due 12/15/06 .................................. 1,537 1,648
Tenet Healthcare Corp. - Sr. Sub. Notes
8.625% due 1/15/07 ................................... 1,526 1,557
-------
3,205
Insurance-2.8%
Equitable Life Assurance Society USA - Surplus
Notes 144A (a)
6.95% due 12/01/05 ................................... 2,750 2,724
Liberty Mutual Insurance Co. - Notes 144A (a)
7.875% due 10/15/26 .................................. 1,835 1,827
Liberty Mutual Insurance Co. - Surplus Notes 144A (a)
8.20% due 5/04/07 .................................... 4,630 4,878
Massachusetts Mutual Life Insurance Co. - Surplus
Notes 144A (a)
7.625% due 11/15/23 .................................. 4,090 4,069
NAC Re Corp. - Notes
8.00% due 6/15/99 .................................... 1,560 1,602
New York Life Insurance Co. - Surplus Notes 144A (a)
7.50% due 12/15/23 ................................... 5,970 5,626
-------
20,726
Leisure and Recreation Products and Services-0.4%
Trump Holdings & Funding - Sr. Notes
15.50% due 6/15/05 ................................... 2,325 2,697
Lodging and Restaurants-0.6%
McDonald's Corp. - Debs
7.375% due 7/15/33 ................................... 5,000 4,864
Media-3.3%
Comcast Corp. - Sr. Sub. Debs
10.625% due 7/15/12 .................................. 2,625 3,111
Jones Intercable, Inc. - Sr. Sub. Debs
11.50% due 7/15/04 ................................... 2,000 2,135
</TABLE>
44
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Media-Continued
News America Holdings, Inc. - Notes
8.25% due 8/10/18 .................................... $ 3,316 $ 3,338
SFX Broadcasting, Inc. - Sr. Sub. Notes
10.75% due 5/15/06 ................................... 2,080 2,236
TCI Communications, Inc. - Debs.
8.75% due 8/01/15 .................................... 3,061 3,211
Time Warner, Inc. - Debs.
9.125% due 1/15/13 ................................... 2,505 2,778
TKR Cable, Inc. - Debs.
10.50% due 10/30/07 .................................. 4,132 4,546
Viacom, Inc. - Sr. Notes
7.75% due 6/01/05 .................................... 1,680 1,686
Viasystems, Inc. - Sr. Sub. Notes 144A (a)
9.75% due 6/01/07 .................................... 1,288 1,302
-------
24,343
Metals and Mining-0.2%
NS Group, Inc. - Units
13.50% due 7/15/03 ................................... 1,330 1,583
Miscellaneous-0.4%
Loewen Group International, Inc. - Bonds 144A (a)
8.25% due 10/15/03 ................................... 3,135 3,241
Municipals-0.4%
New Hampshire State - Taxable Pease Dev. Auth.
7.70% due 7/01/12 .................................... 3,000 3,127
Oils and Natural Gas Equipment and Services-0.8%
Humpuss Funding Corp. - Bonds 144A (a)
7.72% due 12/15/09 ................................... 2,306 2,286
Oils and Natural Gas Equipment and Services
Transgas de Occidente SA - Sr. Notes 144A (a)
9.79% due 11/01/10 ................................... 3,206 3,391
-------
5,617
Oils and Natural Gas Exploration and Production-2.2%
Coastal Corp. - Notes
8.75% due 5/15/99 .................................... 7,250 7,544
Enserch Exploration, Inc. - Pass thru Certs. 144A (a)
7.54% due 1/02/09 .................................... 2,230 2,208
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 9/15/09 .................................. 3,000 3,684
Williams Cos., Inc. - Notes
7.50% due 9/15/99 .................................... 3,000 3,064
-------
16,500
Paper and Forest Products-0.7%
Georgia-Pacific Corp. - Debs.
9.75% due 1/15/18 .................................... 2,895 3,022
S.D. Warren Co. - Sr. Sub. Notes
12.00% due 12/15/04 .................................. 1,825 2,030
-------
5,052
Real Estate Investment Trust-0.3%
Trinet Corp. Realty Trust, Inc. - Notes
7.30% due 5/15/01 .................................... 2,070 2,084
Real Estate Operations-0.3%
Wharf International Finance, Ltd. - Bonds 144A (a)
7.625% due 3/13/07 ................................... 2,175 2,165
</TABLE>
45
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Telecommunications-1.0%
Impsat Corp. - Bonds 144A (a)
12.125% due 7/15/03 .................................. $ 1,999 $ 2,144
Ivaco, Inc. - Sr. Notes
11.50% due 9/15/05 ................................... 1,392 1,493
Paging Network, Inc. - Sr. Sub. Notes
10.00% due 10/15/08 .................................. 1,925 1,848
Qwest Communications International, Inc. - Sr.
Notes 144A (a)
10.875% due 4/01/07 .................................. 1,560 1,693
--------
7,178
Transportation-2.6%
America West Airlines, Inc. - Pass thru Certs
6.93% due 1/02/08 .................................... 2,274 2,246
Continental Airlines, Inc. - Pass thru Certs. 144A (a)
7.206% due 6/30/04 ................................... 3,495 3,513
Northwest Airlines Corp. - Notes
8.375% due 3/15/04 ................................... 3,463 3,520
Northwest Airlines Corp. - Sec. Pass thru Certs
8.97% due 1/02/15 .................................... 227 247
NWA Trust - Sr. Notes
9.25% due 6/21/14 .................................... 2,511 2,836
U.S. Air, Inc. - Pass thru Certs. Ser. 1990-A1
11.20% due 3/19/05 ................................... 1,426 1,385
Union Pacific Corp. - Med. Term Notes
9.65% due 6/01/00 .................................... 5,000 5,374
-------
19,121
U.S. Governmental-17.7%
U.S. Treasury - Bonds
7.125% due 2/15/23 ................................... 42,697 43,950
8.875% due 8/15/17 ................................... 6,120 7,451
9.25% due 2/15/16 .................................... 2,305 2,884
U.S. Treasury - Notes
4.75% due 8/31/98 .................................... 15,500 15,301
7.50% due 5/15/02 .................................... 20,414 21,361
7.50% due 2/15/05 .................................... 8,696 9,201
7.75% due 11/30/99 ................................... 12,157 12,579
8.00% due 5/15/01 .................................... 3,514 3,713
8.875% due 2/15/99 ................................... 11,000 11,478
9.25% due 8/15/98 .................................... 4,000 4,143
-------
132,061
Utilities - Electric-8.5%
AES Corp. - Sr. Sub. Notes
10.25% due 7/15/06 .................................. 1,600 1,740
BVPS II Funding Corp. - Coll. Lease Bonds
8.89% due 6/01/17 ................................... 2,464 2,476
Calpine Corp. - Sr. Notes
10.50% due 5/15/06 .................................. 1,920 2,074
Centerior Energy Corp. - Notes 144A (a)
7.67% due 7/01/04 ................................... 2,880 2,909
Chugach Electric Assoc., Inc. - 1st Mtge Bonds 1991
Ser. A 8.08% due 3/15/02 ............................ 2,772 2,867
Cleveland Electric Illuminating Co. - 1st Mtge. Bonds
9.50% due 5/15/05 ................................... 4,725 5,032
CMS Energy Corp. - Senior Notes 144A (a)
8.125% due 5/15/02 .................................. 2,650 2,677
Entergy Louisiana, Inc. - Bonds
8.09% due 1/02/17 ................................... 2,253 2,259
First PV Funding Corp. - Lease Oblig. Bonds
10.15% due 1/15/16 .................................. 2,992 3,183
</TABLE>
46
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Utilities - Electric-Continued
First PV Funding Corp. - Ser. 1986A
10.30% due 1/15/14 .................................. $ 657 $ 699
Long Island Lighting Co. - Debs
8.90% due 7/15/19 ................................... 830 884
Long Island Lighting Co. - Gen. Ref. Mtge. Bonds
9.625% due 7/01/24 .................................. 2,415 2,482
9.75% due 5/01/21 ................................... 3,300 3,398
Midland Cogeneration Venture - Debs
10.33% due 7/23/02 .................................. 892 976
10.33% due 7/23/02 .................................. 3,680 4,026
Midland Funding Corp. II - Debs
11.75% due 7/23/05 .................................. 1,150 1,337
Utilities - Electric-Continued
Public Service Co. of Colorado - 1st Mtge. Bonds
9.875% due 7/01/20 .................................. 4,500 4,942
Southwestern Public Service Co. - 1st Mtge. Bonds
6.875% due 12/01/99 ................................. 3,500 3,526
System Energy Resources, Inc. - 1st Mtge. Bonds
7.71% due 8/01/01 ................................... 2,590 2,648
Texas New Mexico Power Co. - 1st Mtge. Bonds Ser. U
9.25% due 9/15/00 ................................... 8,000 8,296
Utilicorp United, Inc. - Sr. Notes
8.20% due 1/15/07 ................................... 5,000 5,273
--------
63,704
Utilities - Gas-1.3%
Michigan Consolidated Gas Co. - 1st Mtge. Bonds
5.75% due 5/01/01 ................................... 10,000 9,687
Utilities - Telecommunications-3.1%
Chesapeake & Potomac Telephone Co. - Notes
6.05% due 5/15/03 ................................... 6,460 6,216
GTE California, Inc. - 1st Mtge. Bonds Ser. TT
6.25% due 1/15/98 ................................... 3,200 3,206
GTE Corp. - Debs
8.75% due 11/01/21 .................................. 3,000 3,431
Michigan Bell Telephone Co. - Debs
7.85% due 1/15/22 ................................... 5,000 5,316
New Jersey Bell Telephone Co. - Debs
8.00% due 6/01/22 ................................... 4,000 4,304
Sprint Corp. - Notes
8.125% due 7/15/02 .................................. 1,000 1,053
--------
23,526
--------
TOTAL PUBLICLY-TRADED BONDS- 89.2% 665,498
SHORT-TERM INVESTMENTS- 10.0%
Investment in joint trading account (Note B)
5.81% due 7/01/97 ................................... 74,337 74,707
------- --------
TOTAL INVESTMENTS- 99.2% 740,205
Cash and receivables, less payables- 0.8% 5,852
------- --------
NET ASSETS- 100.0% $746,057
======= ========
</TABLE>
(a) Pursuant to Rule 144A under the Securities Act of 1933, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At June 30, 1997, these securities aggregated $109,050
or 14.6% of the net assets of the Portfolio.
See notes to financial statements.
47
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Argentina-2.6%
Perez Companc SA - ADR (DIVO) ........................... 281,040 $ 4,486
Australia-4.2%
Newcrest Mining, Ltd. (META) ........................... 545,000 1,507
RGC, Ltd. (META) ....................................... 544,300 1,995
Westpac Banking Corp., Ltd. (BANK) ..................... 150,000 903
WMC, Ltd. (META) ....................................... 470,000 2,966
-------
7,371
Brazil-9.6%
Centrais Electricas Brasileiras SA - Eletrobras - ADR
(UTIE) ................................................ 214,500 6,167
Cia Riograndrandese Telecom - Pro Rata Receipts* (TELE) . 90,113 116
Telecomunicacoes Brasileiras S/A-Telebras - ADR (TELE) .. 68,900 10,457
-------
16,740
Chile-2.1%
Chilgener SA - ADR (UTIE) ............................... 72,250 2,023
Maderas y Sinteticos SA - ADR (CONS) .................... 99,400 1,653
-------
3,676
France-4.3%
Lyonnaise des Eaux SA (DIVO) ........................... 30,100 3,032
Moet Hennessy-Louis Vuitton (MISC) ..................... 16,770 4,509
-------
7,541
Germany-4.9%
Schering AG (HEAL) ..................................... 33,000 3,526
VEBA AG (UTIE) ......................................... 43,000 2,416
Volkswagen AG (AUTO) ................................... 3,400 2,606
-------
8,548
Hong Kong-11.9%
Cheung Kong (Holdings), Ltd. (REAL) .................... 380,000 3,752
China Resources Enterprise, Ltd. (REAL) ................ 1,100,000 5,395
Citic Pacific, Ltd. (DIVO) ............................. 630,000 3,936
Hong Kong & Shanghai Hotels, Ltd. (LODG) ............... 1,079,500 1,721
Hutchison Whampoa, Ltd. (DIVO) ......................... 530,000 4,584
Wharf (Holdings), Ltd. (REAL) .......................... 350,000 1,518
-------
20,906
India-1.9%
State Bank of India - GDR* (BANK) ....................... 126,800 3,360
Japan-18.9%
Fujitsu, Ltd. (EDPE) ................................... 403,000 5,590
Ito-Yokado Co., Ltd. (RETL) ............................ 45,000 2,611
Matsushita Communication Industries (TELE) ............. 107,000 3,613
Matsushita-Kotobuki Electronics (AUDI) ................. 139,000 4,608
Shin-Etsu Chemical Co. (CHEM) .......................... 150,000 3,978
Sony Corp. (AUDI) ...................................... 57,000 4,968
Sumitomo Sitix Corp. (MISC) ............................ 150,000 3,206
TDK Corp. (ETRN) ....................................... 61,000 4,476
-------
33,050
Luxembourg-0.4%
Scandinavian Broadcasting Systems SA * (MEDI) ........... 30,000 668
Malaysia-2.0%
Sime Darby Berhad (DIVO) ............................... 665,000 2,213
United Engineers (Malaysia), Ltd. (DIVO) ............... 178,000 1,284
-------
3,497
</TABLE>
48
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Mexico-2.9%
Empresas La Moderna SA de CV - ADR* (FOOD) .............. 81,700 $ 1,746
Grupo Industrial Maseca SA de CV - ADR (FOOD) ........... 205,600 3,392
--------
5,138
Netherlands-2.2%
ING Groep NV (BANK) .................................... 30,100 1,396
PolyGram NV (LEIS) ..................................... 29,000 1,522
PolyGram NV - NY Shares (LEIS) .......................... 16,800 904
--------
3,822
Norway-1.8%
Den Norske Amerikaline AS - ADR* (TRAN) ................. 13,500 527
Saga Petroleum ASA (OILS) .............................. 137,800 2,613
--------
3,140
Panama-4.0%
Panamerican Beverages, Inc. - Cl. A (FOOD) .............. 212,200 6,976
Portugal-0.1%
Electricidade de Portugal SA - ADR* (UTIE) .............. 3,700 133
Singapore-3.2%
DBS Land, Ltd. (READ) .................................. 450,000 1,423
Keppel Corp., Ltd. (DIVO) .............................. 45,000 195
Oversea-Chinese Bank Corp., Ltd. (BANK) ................ 216,000 2,236
Wing Tai Holdings, Ltd. (DIVO) ......................... 600,000 1,729
--------
5,583
South Korea-0.6%
L.G. Construction Co. (ENGI) ........................... 62,600 1,050
Sweden-2.5%
Investor AB (FUND) ..................................... 84,000 4,425
Switzerland-4.1%
Novartis AG* (HEAL) .................................... 2,240 3,581
SMH AG (MISC) .......................................... 26,800 3,630
--------
7,211
Thailand-0.0%
Datamat Public Co., Ltd.* (EDPE) ....................... 6 0
United Kingdom-11.1%
Baltic Republic Fund, Ltd.* (FUND) ..................... 5,800 1,322
Baltic Republic Fund, Ltd. (FUND) ...................... 11,000 1,111
DCC plc (DIVO) ......................................... 400,000 2,431
EMAP plc (MEDI) ........................................ 250,000 3,097
Marks & Spencer plc (RETL) ............................. 510,000 4,230
Pearson plc (MEDI) ..................................... 390,000 4,520
PizzaExpress plc (LODG) ................................ 100,000 1,049
Regal Hotel Group plc (LODG) ........................... 850,000 736
Societe Generale Romania Fund* (FUND) .................. 8,000 900
--------
19,396
United States-0.9%
Societe Generale Central and Eastern-European
Opportunities Fund* (FUND) ........................... 12,860 1,505
--------
TOTAL COMMON STOCK- 96.2% 168,222
PREFERRED STOCK-2.2%
Brazil-2.2%
Cia Riograndrandese Telecom* (TELE) .................... 2,530 3,831
</TABLE>
49
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- ------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-0.1%
U.S. Treasury - Notes (GOVE)
7.875% due 1/15/98................................ $ 200 $ 202
JOINT REPURCHASE AGREEMENT-1.1%
Investment in joint repurchase agreement with
Toronto Dominion Securities (USA), Inc.
dated 6/30/97 5.97% due 7/01/97(a) ................. 1,937 1,937
------- --------
TOTAL INVESTMENTS- 99.6% 174,192
Cash and receivables, less payables- 0.4% 651
------- --------
NET ASSETS- 100.0% $174,843
======= ========
</TABLE>
(a) The repurchase agreement, dated 6/30/97, is fully collateralized by U.S.
government obligations based on market prices at the date of the purchase.
The investment in repurchase agreement is through participation in a joint
account with other portfolios advised by John Hancock.
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Industry Value Long-Term
Abbreviation (000's) Investments
<S> <C> <C> <C>
Diversified Operations....................... DIVO $ 23,890 13.9%
Telecommunications........................... TELE 18,017 10.5%
Food, Beverage and Tobacco................... FOOD 12,114 7.0%
Miscellaneous................................ MISC 11,345 6.6%
Utilities - Electric......................... UTIE 10,739 6.2%
Real Estate Operations....................... REAL 10,665 6.2%
Audio/Video Home Products.................... AUDI 9,576 5.6%
Investment Companies......................... FUND 9,263 5.4%
Media........................................ MEDI 8,285 4.8%
Banks and Finance............................ BANK 7,895 4.6%
Health Products and Services................. HEAL 7,107 4.1%
Retail....................................... RETL 6,841 4.0%
Metals and Mining............................ META 6,468 3.7%
Computers & Office Equipment................. EDPE 5,590 3.3%
Electronic Products.......................... ETRN 4,476 2.6%
Chemicals.................................... CHEM 3,978 2.3%
Oils and Natural Gas Exploration and
Production................................... OILS 2,613 1.5%
Automotive and Rubber........................ AUTO 2,606 1.5%
Lodging and Restaurants...................... LODG 2,457 1.4%
Leisure and Recreation Products and Services. LEIS 2,426 1.4%
Construction................................. CONS 1,653 1.0%
Real Estate Development...................... READ 1,423 0.8%
Engineering.................................. ENGI 1,050 0.6%
Foreign...................................... LODG 1,049 0.6%
Transportation............................... TRAN 527 0.3%
U.S. Governmental............................ GOVE 202 0.1%
-------- -------
$172,255 100.0%
======== =======
</TABLE>
50
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace-1.8%
AAR Corp. .......................................... 9,000 $ 291
Remec, Inc. * ....................................... 13,500 317
--------
608
Automotive and Rubber-0.0%
Keystone Automotive Industries, Inc. * .............. 900 15
Building Products-1.4%
Royal Group Technologies, Ltd. * .................... 9,000 239
Watsco, Inc. ....................................... 8,600 215
--------
454
Business Services-3.8%
COREStaff, Inc. * ................................... 6,200 167
On Assignment, Inc. * ............................... 6,900 269
Outdoor Systems, Inc. * ............................. 4,425 169
PMT Services, Inc. ................................. 15,000 229
Sitel Corp. * ....................................... 6,000 124
StarTek, Inc. * ..................................... 9,400 142
Universal Outdoor Holdings, Inc. * .................. 4,400 153
--------
1,253
Computer Software and Services-13.2%
Advent Software, Inc. * ............................. 9,000 240
Aris Corp. * ........................................ 500 11
Aspect Development, Inc. ........................... 8,800 229
Baan Co., NV * ...................................... 3,000 207
BISYS Group, Inc. * ................................. 6,800 284
Computer Learning Centers, Inc. * ................... 9,000 378
Computer Management Sciences, Inc. * ................ 6,000 123
Discreet Logic, Inc. * .............................. 11,000 182
DST Systems, Inc. * ................................. 3,900 130
E*TRADE Group, Inc. * ............................... 15,000 294
Fair Issac & Co., Inc. ............................. 4,300 192
Information Management Resources, Inc. * ............ 5,300 241
IONA Technologies plc * ............................. 300 6
JDA Software Group, Inc. * .......................... 4,200 143
Learning Tree International, Inc. * ................. 5,600 249
National Instruments Corp. * ........................ 5,600 197
National TechTeam, Inc. * ........................... 10,000 214
Remedy Corp. * ...................................... 7,000 280
RWD Technologies, Inc. * ............................ 100 2
Sterling Commerce, Inc. * ........................... 1,900 62
Transaction Systems Architects, Inc. - Cl. A* ....... 6,000 207
Visio Corp. * ....................................... 4,500 317
Xionics Document Technologies, Inc. * ............... 9,500 140
--------
4,328
Computers & Office Equipment-1.8%
Comverse Technology, Inc. * ......................... 6,000 312
Network Appliance, Inc. * ........................... 7,000 266
--------
578
Diversified Operations-0.4%
Ballantyne of Omaha, Inc. * ......................... 6,900 124
Electronic Products-6.8%
Advanced Technology Materials, Inc. * ............... 11,000 323
Electroglas, Inc. * ................................. 8,500 214
Integrated Circuit Systems, Inc. * .................. 13,000 295
Level One Communications, Inc. * .................... 7,000 269
Novellus Systems, Inc. * ............................ 2,000 173
RF Micro Devices, Inc. * ............................ 1,200 23
Sawtek, Inc. * ...................................... 9,200 311
Semtech Corp. * ..................................... 7,800 285
</TABLE>
51
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Electronic Products-Continued
Special Devices, Inc. * ............................. 5,000 $ 79
Unitrode Corp. * .................................... 5,000 252
--------
2,224
Financial Services-3.6%
Alex. Brown, Inc. .................................. 3,000 212
Capital One Financial Corp. ........................ 4,000 151
FIRSTPLUS Financial Group, Inc. * ................... 7,000 238
IMC Mortgage Co. * .................................. 2,000 33
Interra Financial, Inc. ............................ 2,800 117
Medallion Financial Corp. .......................... 13,600 260
Pre-Paid Legal Services, Inc. * ..................... 8,000 169
--------
1,180
Food, Beverage and Tobacco-3.0%
Fine Host Corp. * ................................... 7,000 221
General Cigar Holdings, Inc. * ...................... 7,000 206
Morningstar Group, Inc. * ........................... 9,000 264
Robert Mondavi Corp. - Cl. A* ....................... 6,000 284
--------
975
Foreign-0.1%
Ryanair Holdings plc - ADR* ......................... 1,100 30
Health Products and Services-8.2%
Affymetrix, Inc. * .................................. 7,800 271
Andrx Corp. * ....................................... 3,700 142
ESC Medical Systems, Ltd. .......................... 8,000 204
Health Care & Retirement Corp. * .................... 5,200 174
Healthcare Recoveries, Inc. * ....................... 7,200 140
Incyte Pharmacuticals, Inc. * ....................... 4,000 268
Kos Pharmaceuticals, Inc. * ......................... 8,300 230
Myriad Genetics, Inc. * ............................. 4,900 132
National Surgery Centers, Inc. ..................... 7,800 276
Perclose, Inc. * .................................... 5,000 125
Protein Design Labs, Inc. * ......................... 6,400 182
Rotech Medical Corp. * .............................. 1,400 28
SeaMed Corp. * ...................................... 1,600 32
Sonus Pharmaceuticals, Inc. * ....................... 9,000 253
Universal Health Services, Inc. * ................... 6,000 231
--------
2,688
Household and Personal-1.8%
Furniture Brands International, Inc. * .............. 15,000 291
Wolverine World Wide, Inc. ......................... 9,900 301
--------
592
Insurance-5.0%
Ace, Ltd. * ......................................... 3,500 259
Capital Re Corp. ................................... 3,300 177
CMAC Investment Corp. .............................. 5,000 239
HCC Insurance Holdings, Inc. ....................... 8,950 239
Life Re Corp. ...................................... 5,000 233
Philadelphia Consolidated Holding Corp. * ........... 8,000 272
Western National Corp. ............................. 9,000 241
--------
1,660
Leisure and Recreation Products and Services-2.8%
Cinar Films, Inc. * ................................. 9,000 293
Premier Parks, Inc. ................................ 7,000 258
Silicon Gaming, Inc. * .............................. 16,000 208
Silverleaf Resorts, Inc. * .......................... 9,500 146
--------
905
</TABLE>
52
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Lodging and Restaurants-1.0%
Logans Roadhouse, Inc. * ............................ 7,000 $ 166
Rainforest Cafe, Inc. * ............................. 6,700 170
--------
336
Machinery and Equipment-1.8%
Gardner Denver Machinery, Inc. * .................... 9,500 283
ITEQ, Inc. * ........................................ 31,000 295
--------
578
Media-6.0%
American Radio Systems Corp. * ...................... 6,600 263
Clear Channel Communications, Inc. * ................ 4,500 277
Cox Radio, Inc. - Cl. A* ............................ 9,400 241
Gray Communications System, Inc. - Cl. B ............ 5,500 115
Heftel Broadcasting Corp. * ......................... 5,500 304
Jacor Communications, Inc. * ........................ 7,000 268
Mecklermedia Corp. * ................................ 9,000 171
Network Event Theater, Inc. * ....................... 16,400 75
Univision Communications, Inc. * .................... 6,400 250
--------
1,964
Metals and Mining-2.3%
Lone Star Technologies, Inc. * ...................... 13,000 372
Maverick Tube Corp. * ............................... 10,000 375
--------
747
Miscellaneous-4.7%
Crescent Operating, Inc. * .......................... 600 7
MAXIMUS, Inc. * ..................................... 2,600 46
Peapod, Inc. * ...................................... 5,100 57
Philip Services Corp. * ............................. 25,800 409
Samsonite Corp. * ................................... 8,200 362
Service Corp. International ........................ 3,000 99
Shelby Williams Industries, Inc. ................... 12,600 172
Strayer Education, Inc. ............................ 4,500 171
Superior Services, Inc. * ........................... 9,000 214
--------
1,537
Oils and Natural Gas Equipment and Services-4.4%
EVI, Inc. * ......................................... 3,200 134
National-Oilwell, Inc. * ............................ 6,800 390
Newpark Resources, Inc. * ........................... 11,400 384
Precision Drilling Corp. - Cl. A* ................... 6,000 290
Pride Petroleum Services, Inc. * .................... 10,400 250
--------
1,448
Oils and Natural Gas Exploration and Production-2.8%
Forcenergy Gas Exploration, Inc. * .................. 6,200 189
Key Energy Group, Inc. * ............................ 11,000 196
Ocean Energy, Inc. ................................. 4,000 185
Stone Energy Corp. * ................................ 7,600 208
Vintage Petroleum, Inc. ............................ 5,200 160
--------
938
Printing-0.9%
Mail-Well Holdings, Inc. * .......................... 10,500 299
Publications-0.5%
Central Newspapers, Inc. ........................... 2,400 172
Real Estate Investment Trust-4.0%
Arden Realty Group, Inc. ........................... 6,300 164
Beacon Properties Corp. ............................ 6,000 200
Cali Realty Corp. .................................. 4,300 146
Crescent Real Estate Equities, Inc. ................ 6,000 191
Glenborough Realty Trust, Inc. ..................... 10,700 270
Redwood Trust, Inc. ................................ 4,400 206
Starwood Lodging Trust ............................. 3,000 128
--------
1,305
</TABLE>
53
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Retail-9.6%
99 Cents Only Stores * .............................. 13,600 $ 409
Arbor Drugs, Inc. .................................. 11,000 221
Cost Plus, Inc. * ................................... 8,000 210
Dominick's Supermarkets, Inc. * ..................... 9,500 253
Hibbett Sporting Goods, Inc. * ...................... 11,400 205
Hot Topic, Inc. * ................................... 8,500 191
Linens 'N Things, Inc. * ............................ 10,000 296
Proffitt's, Inc. * .................................. 6,000 263
Quality Food Centers, Inc. * ........................ 11,800 447
Stage Stores, Inc. * ................................ 14,000 364
Starbucks Corp. * ................................... 4,000 156
Tiffany & Co. ...................................... 3,000 139
--------
3,154
Telecommunications-1.4%
MRV Communications, Inc. * .......................... 9,000 266
Tel-Save Holdings, Inc. * ........................... 13,000 198
--------
464
Textiles-1.3%
Culp, Inc. ......................................... 12,000 218
Cutter & Buck, Inc. * ............................... 7,700 125
Nautica Enterprises, Inc. .......................... 3,400 90
--------
433
Transportation-3.0%
Budget Group, Inc. - Cl. A* ......................... 7,900 273
Carey International, Inc. * ......................... 3,600 55
Eagle USA Airfreight, Inc. * ........................ 9,000 244
Offshore Logistics, Inc. * .......................... 10,000 189
Rollins Truck Leasing Corp. ........................ 16,000 238
--------
999
Utilities - Telecommunications-0.4%
Worldcom, Inc. ..................................... 4,000 128
--------
TOTAL COMMON STOCK- 97.8% 32,116
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
JOINT REPURCHASE AGREEMENT-1.9%
Investment in joint repurchase agreement with Toronto
Dominion Securities (USA), Inc. dated 6/30/97
5.97% due 7/01/97(a)................................ $ 638 638
--------- --------
TOTAL INVESTMENTS- 99.7% 32,754
Cash and receivables, less payables- 0.3% 89
--------- --------
NET ASSETS- 100.0% $ 32,843
========= ========
</TABLE>
(a) The repurchase agreement, dated 6/30/97, is fully collateralized by U.S.
government obligations based on market prices at the date of the
purchase. The investment in repurchase agreement is through participation
in a joint account with other portfolios advised by John Hancock.
* Non-income producing security.
ADR-American Depositary Receipt
See notes to financial statements.
54
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
<S> <C> <C>
Australia-2.6%
Amcor, Ltd. (PAPR) .......................... 4,000 $ 27
Boral, Ltd. (BUIL) .......................... 5,000 16
Brambles Industries, Ltd. (DIVO) ............ 1,000 20
Broken Hill Proprietary Co., Ltd. (DIVO) .... 11,500 169
Coca-Cola Amatil, Ltd. (FOOD) ............... 2,000 26
CRA, Ltd. (META) ............................ 3,000 51
CSR, Ltd. (BUIL) ............................ 4,000 16
David Jones, Ltd. (RETL) .................... 13,500 19
Lend Lease Corp. (FINL) ..................... 1,400 30
M.I.M. Holdings, Ltd. (META) ................ 11,585 17
National Australia Bank, Ltd. (BANK) ........ 5,000 72
News Corp., Ltd. (MEDI) ..................... 11,900 57
Pacific Dunlop, Ltd. (DIVO) ................. 6,700 20
Qantas Airways, Ltd. (TRAN) ................. 9,336 22
Santos, Ltd. (OILS) ......................... 2,000 8
Westpac Banking Corp., Ltd. (BANK) .......... 12,000 72
WMC, Ltd. (META) ............................ 2,800 18
Woolworth's, Ltd. (RETL) .................... 4,000 13
---------
673
Belgium-1.8%
Delhaize-Le Lion SA (RETL) .................. 650 34
Electrabel SA (UTIE) ........................ 280 60
Fortis AG (INSU) ............................ 332 69
Fortis AG * (INSU) ........................... 32 0
Generale de Banque SA (BANK) ................ 100 38
Groupe Bruxelles Lambert SA (FUND) .......... 160 27
Kredietbank NV (BANK) ....................... 3 1
Kredietbank NV (BANK) ....................... 160 64
N.V. Union Miniere SA * (META) ............... 382 36
Petrofina SA (OILS) ......................... 150 57
Societe Generale de Belgique (DIVO) ......... 200 19
Solvay SA (CHEM) ............................ 60 35
Tractebel (UTIE) ............................ 70 29
---------
469
Canada-1.8%
Alcan Aluminum, Ltd. (META) ................. 900 31
Bank of Montreal (BANK) ..................... 700 27
Barrick Gold Corp. (META) ................... 600 13
BCE, Inc. (TELE) ............................ 800 22
Canadian National Railway Co. (TRAN) ........ 900 39
Canadian Pacific, Ltd. (TRAN) ............... 2,400 68
Hudson's Bay Co. (RETL) ..................... 500 11
Imperial Oil, Ltd. (OILS) ................... 800 41
MacMillan Bloedel, Ltd. (PAPR) .............. 1,300 18
Moore Corp., Ltd. (EDPE) .................... 400 8
Noranda, Inc. (META) ........................ 900 19
Northern Telecom, Ltd. (TELE) ............... 200 18
NOVA Corp. (CHEM) ........................... 1,500 13
Royal Bank of Canada (BANK) ................. 1,100 50
Seagram Co., Ltd. (DIVO) .................... 700 28
Thomson Corp. (PUBL) ........................ 1,200 28
Transcanada Pipelines, Ltd. (OILS) .......... 1,300 26
---------
460
Finland-0.5%
Merita, Ltd. * (BANK) ........................ 3,500 12
Outokumpu OY (META) ......................... 600 12
</TABLE>
55
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Finland-Continued
Oy Nokia AB (TELE) ................................ 800 $ 60
Pohjola Insurance Group (INSU) .................... 200 6
Rauma Oy (MACH) ................................... 27 1
Sampo Insurance Co., Ltd. (INSU) .................. 100 10
UPM-Kymmene Corp. * (PAPR) ......................... 1,000 23
---------
124
France-4.0%
Accor SA (LODG) ................................... 255 38
Alcatel Alsthom (TELE) ............................ 400 50
AXA SA (INSU) ..................................... 680 42
Banque Nationale de Paris (BANK) .................. 1,500 62
Colas (CONS) ...................................... 100 13
Compagnie Bancaire SA (FINL) ...................... 253 32
Compagnie de St. Gobain (BUIL) .................... 350 51
Compagnie de Suez SA (FINL) ....................... 6,741 17
Compagnie Generale des Eaux (DIVO) ................ 312 40
Credit Local de France (FINL) ..................... 500 49
Elf Aquitaine (OILS) .............................. 700 76
Group Danone * (FOOD) .............................. 300 50
Lafarge SA (BUIL) ................................. 400 25
Lagardere S.C.A. (DIVO) ........................... 800 23
Lyonnaise des Eaux SA (DIVO) ...................... 400 40
Michelin (AUTO) ................................... 850 51
Moet Hennessy-Louis Vuitton (MISC) ................ 120 32
Pechiney SA (DIVO) ................................ 750 30
PSA Peugeot (AUTO) ................................ 520 50
Rhone-Poulenc (CHEM) .............................. 1,500 61
SEITA (FOOD) ...................................... 800 25
Societe Generale de Paris (BANK) .................. 470 52
Thomson CFS (ETRN) ................................ 900 23
Total SA - Cl. B (OILS) ........................... 521 53
Usinor Sacilor (META) ............................. 3,400 61
---------
1,046
Germany-5.1%
Allianz AG (INSU) ................................. 600 126
BASF AG (CHEM) .................................... 1,600 59
Bayer AG (CHEM) ................................... 2,000 77
Bayerische Motoren Werke AG (AUTO) ................ 50 41
Commerzbank AG (BANK) ............................. 1,450 41
Daimler-Benz AG (AUTO) ............................ 800 65
Deutsche Bank AG (BANK) ........................... 1,470 86
Deutsche Telekom * (UTIT) .......................... 4,200 101
Henkel KGaA (CHEM) ................................ 600 34
Hochtief AG (CONS) ................................ 500 22
Hoechst AG (CHEM) ................................. 700 30
M.A.N. AG (AUTO) .................................. 80 25
Mannesmann AG (DIVO) .............................. 150 67
Metro AG * (RETL) .................................. 400 44
Muenchener Rueckversicherungs-Gesellschaft (INSU) . 30 84
Preussag AG (META) ................................ 170 50
RWE AG (UTIE) ..................................... 1,040 45
Schering AG (HEAL) ................................ 640 68
Siemens AG (DIVO) ................................. 750 45
Thyssen AG (META) ................................. 250 59
VEBA AG (UTIE) .................................... 1,420 80
Volkswagen AG (AUTO) .............................. 100 77
---------
1,326
</TABLE>
56
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Hong Kong-0.7%
Cheung Kong (Holdings), Ltd. (REAL) ............... 2,000 $ 20
China Light & Power Co., Ltd. (UTIE) .............. 3,000 17
Guoco Group, Ltd. (FINL) .......................... 2,000 11
Hang Seng Bank, Ltd. (BANK) ....................... 1,500 21
Hong Kong Telecommunications, Ltd. (TELE) ......... 6,000 14
Hutchison Whampoa, Ltd. (DIVO) .................... 4,000 35
New World Development Co., Ltd. (REAL) ............ 2,000 12
Sun Hung Kai Properties, Ltd. (REAL) .............. 1,000 12
Swire Pacific, Ltd. - Cl. A (DIVO) ................. 2,000 18
Wharf (Holdings), Ltd. (REAL) ..................... 3,000 13
---------
173
Italy-1.7%
Assicurazioni Generali (INSU) ..................... 3,300 60
Banca Commerciale Italiana (BANK) ................. 7,000 14
Credito Italiano SpA (BANK) ....................... 17,000 31
Edison SpA (UTIE) ................................. 2,400 12
Ente Nazionale Idrocarburi SpA (OILS) ............. 18,000 102
Fiat SpA * (AUTO) .................................. 10,000 18
Istituto Mobiliare Italiano SpA (FINL) ............ 3,000 27
Istituto Nazionale delle Assicurazioni (INSU) ..... 5,000 8
Italgas SpA (UTIG) ................................ 2,000 6
La Rinascente SpA (RETL) .......................... 2,300 13
Mediobanca SpA (FINL) ............................. 1,000 6
Montedison SpA * (DIVO) ............................ 47,620 31
Societa Assicuratrice Industriale (INSU) .......... 2,300 7
Telecom Italia Mobile SpA (UTIT) .................. 22,000 39
Telecom Italia Mobile SpA (UTIT) .................. 8,000 26
Telecom Italia SpA (UTIT) ......................... 20,000 40
---------
440
Japan-13.4%
Amada Co., Ltd (MACH) ............................. 5,000 44
Asahi Glass Co., Ltd. (BUIL) ...................... 7,000 70
Bank of Tokyo-Mitsubishi (BANK) ................... 6,000 120
Canon Sales Co., Inc. (EDPE) ...................... 1,100 26
Canon, Inc. (EDPE) ................................ 3,000 82
Citizen Watch Co., Ltd. (HOUS) .................... 5,000 39
Dai Nippon Printng Co., Ltd. (PRIN) ............... 3,000 68
Daiichi Pharm Co., Ltd. (HEAL) .................... 3,000 53
Daikin Industries, Ltd. (MACH) .................... 5,000 45
Daiwa House Industry Co., Ltd. (CONS) ............. 3,000 37
Fanuc (MACH) ...................................... 2,200 84
Fujitsu, Ltd. (EDPE) .............................. 3,000 42
Hitachi, Ltd. (ETRN) .............................. 11,000 123
Honda Motor Co. (AUTO) ............................ 1,000 30
Inax Corp. (BUIL) ................................. 5,000 37
Isetan Co. (RETL) ................................. 2,000 25
Ito-Yokado Co., Ltd. (RETL) ....................... 2,000 116
Kanegafuchi Chemical Industry (CHEM) .............. 6,000 38
Keio Teito Electric Railway (TRAN) ................ 6,000 29
Kinki Nippon Railway (TRAN) ....................... 6,000 37
Kirin Brewery Co. (FOOD) .......................... 6,000 62
Kokuyo Co. (EDPE) ................................. 2,000 54
Kuraray Co., Ltd. (TEXT) .......................... 7,000 70
Kyocera Corp. (ETRN) .............................. 1,000 79
Maeda Road Construction (CONS) .................... 1,000 9
Marui Co., Ltd. (RETL) ............................ 3,000 56
Matsushita Electric Industrial Co. * (AUDI) ........ 9,000 181
Mitsubishi Paper Mills (PAPR) ..................... 7,000 27
NGK Insulators (AUTO) ............................. 9,000 99
</TABLE>
57
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Japan-Continued
Nintendo Corp., Ltd. (LEIS) ....................... 500 $ 42
Nippon Meat Packers, Inc. (FOOD) .................. 3,000 39
Nippon Steel Co. (META) ........................... 4,000 13
Nippondenso Co., Ltd. (ETRN) ...................... 2,000 48
Okumura Corp. (CONS) .............................. 6,000 32
Osaka Gas Co. (UTIG) .............................. 11,000 32
Sankyo Co., Ltd. (HEAL) ........................... 4,000 134
Sanwa Bank (BANK) ................................. 3,000 44
Secom Co. (ETRN) .................................. 1,000 73
Seino Transportion (TRAN) ......................... 4,000 43
Sekisui House, Ltd. (READ) ........................ 9,000 91
Shinmaywa Industries, Ltd. (AUTO) ................. 3,000 21
Sony Corp. (AUDI) ................................. 1,800 157
Sumitomo Bank (BANK) .............................. 6,000 98
Sumitomo Electric Industries (ETRN) ............... 5,000 84
Sumitomo Trust & Banking (BANK) ................... 3,000 32
Takeda Chemical Industries (HEAL) ................. 4,000 112
TDK Corp. (ETRN) .................................. 1,000 73
Tokio Marine & Fire Insurance Co. (INSU) .......... 5,000 65
Tokyo Electric Power (UTIE) ....................... 1,500 32
Tokyo Steel Manufacturing (META) .................. 4,000 45
Tonen Corp. (OILS) ................................ 3,000 36
Toray Industries, Inc. (CHEM) ..................... 22,000 157
Toshiba Corp. (ETRN) .............................. 13,000 84
Toyo Suisan Kaisha (FOOD) ......................... 3,000 31
Toyota Motor Corp. (AUTO) ......................... 1,000 29
Yamazaki Baking Co., Ltd. (FOOD) .................. 2,000 35
---------
3,464
Malaysia-0.9%
Hume Industries (Malaysia) Berhad (BUIL) .......... 3,000 14
Kuala Lumpur Kepong Berhad (DIVO) ................. 7,000 17
Land & General Berhad (DIVO) ...................... 6,000 7
Malayan Banking Berhad (BANK) ..................... 3,400 36
Malaysia International Shipping Berhad (TRAN) ..... 4,000 10
Nestle (Malaysia) Berhad (FOOD) ................... 1,000 7
Public Bank Berhad (BANK) ......................... 8,000 12
Resorts World Berhad (LEIS) ....................... 2,000 6
Rothmans of Pall Mall (Malaysia) Berhad (FOOD) .... 1,000 10
Sime Darby Berhad (DIVO) .......................... 7,000 23
Telekom Malaysia Berhad (TELE) .................... 4,500 21
Tenaga Nasional Berhad (UTIE) ..................... 8,000 39
UMW Holdings Berhad (DIVO) ........................ 3,000 14
United Engineers (Malaysia), Ltd. (DIVO) .......... 2,000 14
YTL Corp. Berhad (DIVO) ........................... 2,000 6
YTL Power International Berhad * (MISC) ............ 200 0
---------
236
Netherlands-3.5%
ABN Amro Holding NV (BANK) ........................ 3,312 62
Akzo Nobel NV (CHEM) .............................. 130 18
DSM NV (CHEM) ..................................... 200 20
Elsevier NV (PUBL) ................................ 3,400 57
Heineken NV (FOOD) ................................ 100 17
ING Groep NV (BANK) ............................... 2,596 120
KLM Royal Dutch Air Lines NV (TRAN) ............... 1,200 37
Koninklijke Nederlandsche Hoogovens NV (META) ..... 413 23
Koninklijke PTT Nederland NV (TELE) ............... 2,181 86
Philips Electronics NV (ETRN) ..................... 1,200 86
</TABLE>
58
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Netherlands-Continued
Royal Dutch Petroleum Co. - NY Shares (OILS) ....... 5,200 $ 283
Unilever NV (DIVO) ................................ 400 84
---------
893
New Zealand-1.8%
Brierley Investments, Ltd. (FUND) ................. 71,400 70
Carter Holt Harvey, Ltd. (PAPR) ................... 26,000 67
Fletcher Challenge Building (BUIL) ................ 6,000 18
Fletcher Challenge Energy (OILS) .................. 6,000 18
Fletcher Challenge Forests (PAPR) ................. 18,500 27
Fletcher Challenge Paper (PAPR) ................... 13,500 33
Telecom Corp. of New Zealand (UTIT) ............... 43,000 219
---------
452
Singapore-0.8%
City Developments, Ltd. (READ) .................... 2,000 20
DBS Land, Ltd. (READ) ............................. 3,000 9
Development Bank of Singapore, Ltd. (BANK) ........ 2,000 25
Hotel Properties, Ltd. (LODG) ..................... 6,000 10
Jardine Matheson Holdings, Ltd. * (DIVO) ........... 1,200 9
Keppel Corp., Ltd. - Cl. A* (DIVO) ................. 1,000 4
Keppel Corp., Ltd. (DIVO) ......................... 250 1
Oversea-Chinese Bank Corp., Ltd. (BANK) ........... 3,600 37
Singapore Airlines, Ltd. (TRAN) ................... 3,000 27
Singapore Press Holdings, Ltd. (PUBL) ............. 1,000 20
Singapore Telecommunications, Ltd. (UTIT) ......... 9,000 17
United Overseas Bank, Ltd. (BANK) ................. 2,000 21
Wing Tai Holdings, Ltd. (DIVO) .................... 3,000 9
---------
209
Spain-1.5%
Acerinox SA (META) ................................ 100 19
Banco Bilbao Vizcaya SA (BANK) .................... 500 41
Banco Central Hispanoamericano (BANK) ............. 600 22
Banco Popular Espanol SA (BANK) ................... 130 32
Banco Santander SA (BANK) ......................... 1,050 32
Corporacion Mapfre (INSU) ......................... 200 11
Empresa Nacional de Electricidad SA * (UTIE) ....... 700 59
Fomento de Construcciones y Contratas SA (CONS) ... 200 26
Gas Natural SDG (UTIG) ............................ 100 22
Iberdrola SA (UTIE) ............................... 2,400 30
Repsol SA (OILS) .................................. 700 30
Telefonica de Espana (UTIT) ....................... 1,700 49
Vallehermoso SA (READ) ............................ 400 11
Viscofan Industria Navarra de Envolturas
Celulosicas SA (FOOD) ............................ 500 12
---------
396
Switzerland-1.2%
ABB AG (MACH) ..................................... 13 20
Alusuisse-Lonza Holdings AG (DIVO) ................ 10 10
Ciba Specialty Chemicals AG * (CHEM) ............... 56 5
CS Holding AG (BANK) .............................. 140 18
Nestle SA (FOOD) .................................. 42 55
Novartis AG * (HEAL) ............................... 56 90
Roche Holdings AG (HEAL) .......................... 6 54
Schweizerische Bankgesellschaft (BANK) ............ 10 11
Schweizerische Rueckversicherungs-Gesellschaft
(INSU) ......................................... 10 14
Zurich Versicherungsgesellschaft (INSU) ........... 90 36
---------
313
</TABLE>
59
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
United Kingdom-11.8%
Abbey National First Capital BV (BANK) ............ 3,000 $ 41
B.A.T. Industries plc (FOOD) ...................... 15,400 138
Bass plc - ADR (LODG) .............................. 2,300 28
BG plc (UTIG) ..................................... 28,500 104
Booker plc (FOOD) ................................. 2,300 11
British Energy plc (UTIE) ......................... 21,000 51
British Petroleum Co. plc - ADR* (OILS) ............ 12,744 159
British Steel plc (META) .......................... 27,800 69
British Telecommunications plc (TELE) ............. 21,000 156
BTR plc (DIVO) .................................... 7,000 24
Centrica plc * (UTIG) .............................. 28,500 35
Charter plc (DIVO) ................................ 4,372 58
Coats Viyella plc (TEXT) .......................... 11,500 24
FKI plc (MACH) .................................... 17,500 50
General Electric Co. plc (ETRN) ................... 28,400 170
Glaxo Wellcome plc - ADR (HEAL) .................... 9,300 192
Grand Metropolitan plc (FOOD) ..................... 7,800 75
Guinness plc (FOOD) ............................... 10,000 98
Hanson plc (BUIL) ................................. 6,875 34
Hillsdown Holdings plc (FOOD) ..................... 17,000 48
House of Fraser plc (RETL) ........................ 18,000 48
HSBC Holdings plc (BANK) .......................... 4,000 123
Imperial Chemical Industries plc (CHEM) ........... 1,000 14
Inchcape plc (DIVO) ............................... 6,000 28
J. Sainsbury plc (FOOD) ........................... 7,000 42
Jefferson Smurfit Group plc (MISC) ................ 15,000 43
Legal & General Group plc (INSU) .................. 10,500 71
Lloyds TSB Group plc (BANK) ....................... 14,000 144
Marks & Spencer plc (RETL) ........................ 10,000 83
Mirror Group plc (PUBL) ........................... 8,000 25
National Westminster Bank plc (BANK) .............. 3,500 47
Northern Foods plc (FOOD) ......................... 10,000 33
Peninsular & Oriental Steam Navigation Co. (TRAN) . 5,500 55
Reckitt & Colman plc (HOUS) ....................... 2,425 36
Redland plc (BUIL) ................................ 3,000 17
Reuters Holdings plc (MEDI) ....................... 4,000 42
RJB Mining plc (META) ............................. 7,500 45
Royal & Sun Alliance Insurance Group plc (INSU) ... 10,801 80
RTZ Corp. plc (META) .............................. 4,900 85
Scottish Hydro-Electric plc (UTIE) ................ 4,900 34
Sears plc (RETL) .................................. 21,000 24
Sedgwick Group plc (INSU) ......................... 13,500 28
Smithkline Beecham plc (HEAL) ..................... 6,000 110
Tesco plc (RETL) .................................. 6,000 37
Thames Water plc (WATR) ........................... 5,000 57
Unilever plc (FOOD) ............................... 1,000 29
Vodafone Group plc (TELE) ......................... 5,500 27
Williams plc (DIVO) ............................... 9,000 49
Yorkshire Water plc (WATR) ........................ 3,600 24
---------
3,045
---------
TOTAL COMMON STOCK- 53.1% 13,719
PREFERRED STOCK-0.0%
Australia-0.0%
News Corp., Ltd. - Pref. (MEDI) .................... 3 12
</TABLE>
60
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Australia-3.1%
Australian Government - Bonds (GOVA)
9.00% due 9/15/04................................. $ 950 $ 805
Belgium-1.8%
Belgium Kingdom - Bonds (GOVA)
5.00% due 3/28/01................................. 8,000 227
6.50% due 3/31/05................................. 8,000 237
---------
464
Canada-6.3%
Government of Canada - Debs. (GOVA)
6.50% due 6/01/04................................. 1,548 1,146
4.25% due 12/01/21................................ 635 483
---------
1,629
Denmark-4.7%
Kingdom of Denmark - Bonds (GOVA)
8.00% due 5/15/03................................. 5,400 919
7.00% due 11/10/24................................ 1,900 283
---------
1,202
France-1.7%
Government of France - Bonds (GOVA)
8.25% due 2/27/04................................. 2,200 441
Germany-9.6%
Federal Republic of Germany - Bonds (GOVA)
8.25% due 9/20/01................................. 2,500 1,640
6.50% due 10/14/05................................ 1,380 843
---------
2,483
Italy-4.0%
Republic of Italy - Bonds (GOVA)
6.25% due 3/01/02................................. 1,760,000 1,038
Netherlands-2.5%
Government of Netherlands - Bonds (GOVA)
7.00% due 2/15/03................................. 1,150 647
Spain-1.0%
Government of Spain - Bonds (GOVA)
7.90% due 2/28/02................................. 35,000 260
Sweden-1.2%
Swedish Government - Debs. (GOVA)
6.00% due 2/09/05................................. 2,400 304
United Kingdom-4.8%
Conversion - Bonds (GOVA)
9.50% due 10/25/04................................ 470 888
U.K. Treasury - Bonds (GOVA)
9.00% due 10/13/08................................ 188 357
---------
1,245
---------
TOTAL PUBLICLY-TRADED BONDS- 40.7% 10,518
WARRANTS
AXA-UAP
expires 7/01/99 (Cost $2) ........................ 0 2
Compagnie General de Eaux
expires 5/02/01................................... 1 0
La Rinascente SpA
expires 11/30/99.................................. 0 0
Societe Generale de Belgique
expires 11/30/99.................................. 0 1
---------
TOTAL WARRANTS- 0.0% 3
</TABLE>
61
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
RIGHTS
La Rinascente SpA
expires 7/23/97................................... $ 2 $ 0
expires 7/23/97................................... 2 0
---------
TOTAL RIGHTS- 0.0% 0
COMMERCIAL PAPER-1.9%
Avery Dennison Corp.
6.25% due 7/01/97................................. 514 514
----------- ---------
TOTAL INVESTMENTS- 95.8% 24,766
Cash and receivables, less payables- 4.2% 1,072
----------- ---------
NET ASSETS- 100.0% $ 25,838
=========== =========
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Governmental................................... GOVA $ 10,518 43.4%
Banks and Finance.............................. BANK 1,761 7.3%
Diversified Operations......................... DIVO 942 3.9%
Oils and Natural Gas Exploration and Production OILS 889 3.7%
Electronic Products............................ ETRN 843 3.5%
Food, Beverage and Tobacco..................... FOOD 843 3.5%
Health Products and Services................... HEAL 813 3.4%
Insurance...................................... INSU 717 2.9%
Metals and Mining.............................. META 666 2.7%
Chemicals...................................... CHEM 561 2.3%
Retail......................................... RETL 523 2.2%
Automotive and Rubber.......................... AUTO 506 2.1%
Utilities - Telecommunications................. UTIT 491 2.0%
Utilities - Electric........................... UTIE 488 2.0%
Telecommunications............................. TELE 454 1.9%
Transportation................................. TRAN 367 1.5%
Audio/Video Home Products...................... AUDI 338 1.4%
Building Products.............................. BUIL 298 1.2%
Machinery and Equipment........................ MACH 244 1.0%
Paper and Forest Products...................... PAPR 222 0.9%
Computers & Office Equipment................... EDPE 212 0.9%
Utilities - Gas................................ UTIG 199 0.8%
Financial Services............................. FINL 172 0.7%
Construction................................... CONS 139 0.6%
Real Estate Development........................ READ 131 0.5%
Publications................................... PUBL 130 0.5%
Media.......................................... MEDI 111 0.5%
Investment Companies........................... FUND 97 0.4%
Textiles....................................... TEXT 94 0.4%
Water and Water Treatment Services............. WATR 81 0.3%
Lodging and Restaurants........................ LODG 76 0.3%
Household and Personal......................... HOUS 75 0.3%
Miscellaneous.................................. MISC 75 0.3%
Printing....................................... PRIN 68 0.3%
Real Estate Operations......................... REAL 57 0.2%
Leisure and Recreation Products and Services... LEIS 48 0.2%
========= =========
$ 24,249 100.0%
========= =========
</TABLE>
62
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
<TABLE>
<CAPTION>
June 30, 1997
- -------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Banks and Finance-0.9%
First Empire State Corp. ............................ 450 $ 152
Northern Trust Corp. ................................ 150 7
Regions Financial Corp. ............................. 1,550 49
TCF Financial Corp. ................................. 550 27
------
235
Building Products-0.0%
Johns Manville Corp. ................................ 400 5
Business Services-5.1%
Coinmach Laundry Corp. * ............................ 9,075 216
Outdoor Systems, Inc. * ............................. 15,200 581
Paychex, Inc. ....................................... 13,925 529
Profit Recovery Group International, Inc. * ......... 3,325 46
Robert Half International, Inc. * ................... 300 14
------
1,386
Chemicals-0.1%
Betzdearborn, Inc. .................................. 325 21
Computers & Office Equipment-0.1%
Amdahl Corp. * ...................................... 3,000 26
Electronic Products-2.3%
Littelfuse, Inc. * .................................. 16,950 479
Methode Electronics, Inc. - Cl. A ................... 7,275 145
------
Finacial Services-Continued 624
Associates First Capital Corp. ...................... 1,675 93
Charles Schwab Corp. ................................ 6,125 249
Credit Acceptance Corp. * ........................... 7,125 92
Finova Group, Inc. .................................. 375 29
HealthCare Financial Partners, Inc. * ............... 15,450 315
Household International, Inc. ....................... 475 56
Medallion Financial Corp. ........................... 19,500 373
------
1,207
Food, Beverage and Tobacco-0.6%
JP Foodservice, Inc. * .............................. 6,050 174
Foreign-11.8%
Capita Group plc .................................... 28,011 110
J.D. Wetherspoon plc - ADR .......................... 59,020 1,331
PizzaExpress plc .................................... 120,450 1,264
Rentokil Initial plc ................................ 55,365 194
Royal Caribbean Cruises, Ltd. ....................... 6,450 225
Ryanair Holdings plc - ADR* ......................... 3,300 90
------
3,214
Government Agencies-0.2%
Federal Agricultural Mortgage Corp. * ............... 1,675 61
Health Products and Services-8.5%
DENTSPLY International, Inc. ........................ 1,525 75
Depotech Corp. * .................................... 8,600 117
Omnicare, Inc. ...................................... 27,900 875
Sofamor Danek Group, Inc. * ......................... 22,750 1,041
Sunrise Assisted Living, Inc. * ..................... 3,725 130
Sybron International Corp. * ........................ 150 6
Weider Nutrition International, Inc. ................ 3,450 55
------
2,299
</TABLE>
63
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
<TABLE>
<CAPTION>
June 30, 1997
- --------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Insurance-5.2%
AFLAC, Inc. ............................................ 975 $ 46
Hartford Life, Inc. * .................................. 7,275 273
Nationwide Financial Services, Inc. - Cl. A ............ 1,075 29
Progressive Corp. ...................................... 2,550 222
Protective Life Corp. .................................. 10,225 514
Travelers Group, Inc. .................................. 1,250 79
UICI * ................................................. 6,300 186
Western National Corp. ................................. 2,700 72
------
1,421
Leisure and Recreation Products and Services-4.7%
Family Golf Centers, Inc. * ............................ 17,575 404
Premier Parks, Inc. .................................... 12,225 451
Regal Cinemas, Inc. * .................................. 12,750 421
------
1,276
Lodging and Restaurants-8.0%
Choice Hotels International, Inc. ...................... 3,825 65
Extended Stay America, Inc. * .......................... 225 3
HFS, Inc. * ............................................ 17,250 1,001
Papa John's International, Inc. * ...................... 29,837 1,097
------
2,166
Machinery and Equipment-0.4%
JLK Direct Distribution, Inc. - Cl. A* ................. 2,125 54
Rental Service Corp. * ................................. 2,225 58
------
112
Media-6.3%
Clear Channel Communications, Inc. * ................... 12,475 767
Evergreen Media Corp. .................................. 12,825 572
Heftel Broadcasting Corp. * ............................ 4,350 240
Univision Communications, Inc. * ....................... 3,225 126
------
1,705
Metals and Mining-0.4%
Minerals Technologies, Inc. ............................ 3,325 125
Miscellaneous-5.1%
Apollo Group, Inc. - Cl. A* ............................ 17,275 609
Catalina Marketing Corp. * ............................. 1,175 57
Sealed Air Corp. * ..................................... 10,400 494
Trigen Energy Corp. .................................... 8,925 223
------
1,383
Pollution Control Equipment and Services-2.3%
Culligan Water Technologies, Inc. * .................... 14,075 630
Publications-0.7%
Central Newspapers, Inc. ............................... 2,525 181
Real Estate Operations-2.4%
Insignia Financial Group, Inc. - Cl. A ................. 36,300 658
Retail-17.6%
Barnett, Inc. * ........................................ 21,375 524
Costco Cos., Inc. * .................................... 1,800 59
Fastenal Co. ........................................... 42,400 2,077
Fred Meyer, Inc. * ..................................... 5,375 278
MSC Industrial Direct Co., Inc. * ...................... 3,650 146
O'Reilly Automotive, Inc. * ............................ 5,875 226
Petco Animal Supplies, Inc. ............................ 42,184 1,266
Quality Food Centers, Inc. * ........................... 3,925 149
Safeway, Inc. * ........................................ 1,050 48
------
4,773
</TABLE>
64
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Telecommunications-1.9%
Cincinnati Bell, Inc. ................................. 3,600 $ 113
CommNet Cellular, Inc. * .............................. 1,375 48
PriCellular Corp. - Cl. A ............................. 38,762 349
--------
510
Textiles-0.1%
G & K Services, Inc. - Cl. A .......................... 875 33
Transportation-2.5%
Wisconsin Central Transportation Corp. * .............. 18,075 673
--------
TOTAL COMMON STOCK- .. 91.6% 24,898
WARRANTS-0.1%
Littelfuse, Inc. ......................................
expires 12/27/01 (Cost $11) ......................... 1 16
<CAPTION>
Par
Value
(000's)
GOVERNMENT AGENCY SHORT-TERM NOTES
Federal Home Loan Mortgage Corp.
5.75% due 7/01/97 ................................... $ 1,400 1,400
5.40% due 7/10/97 ................................... 1,000 999
--------
TOTAL GOVERNMENT AGENCY SHORT-TERM NOTES- 8.8% 2,399
-------- --------
TOTAL INVESTMENTS- 100.5% 27,313
Payables, less cash and receivables- (0.5)% (144)
-------- --------
NET ASSETS- 100.0% $ 27,169
======== ========
* Non-income producing security
ADR-American Depository Receipt.
See notes to financial statements.
</TABLE>
65
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Automotive and Rubber-1.8%
Eaton Corp. ........................................ 2,000 $ 175
Ford Motor Co. ..................................... 3,000 113
General Motors Corp. ............................... 5,300 295
Genuine Parts Co. .................................. 6,400 217
------
800
Banks and Finance-9.4%
Banc One Corp. ..................................... 7,700 373
BankBoston Corp. ................................... 3,700 267
Bankers Trust New York Corp. ....................... 3,700 322
Chase Manhattan Corp. .............................. 5,300 514
Fleet Financial Group, Inc. ........................ 4,900 310
Great Western Financial Corp. ...................... 1,300 70
J.P. Morgan & Co., Inc. ............................ 3,900 407
Mellon Bank Corp. .................................. 15,500 698
Mercantile Bankshares Corp. ........................ 3,800 152
National City Corp. ................................ 4,700 247
PNC Bank Corp. ..................................... 4,000 167
Signet Banking Corp. ............................... 6,900 248
Wells Fargo & Co. .................................. 1,100 296
------
4,071
Building Products-0.4%
Armstrong World Industries, Inc. ................... 2,500 183
Business Services-0.6%
ACNielson Corp. * .................................. 1 0
Dun & Bradstreet Corp. * ........................... 9,100 239
------
239
Chemicals-6.6%
Betzdearborn, Inc. ................................. 3,600 238
Dow Chemical Co. ................................... 7,900 688
E.I. du Pont de Nemours & Co. ...................... 7,800 490
Eastman Chemical Co. ............................... 2,900 184
FMC Corp. * ........................................ 1,100 87
Great Lakes Chemical Corp. ......................... 6,700 351
Lubrizol Corp. ..................................... 5,000 210
Nalco Chemical Co. ................................. 4,900 189
Witco Corp. ........................................ 10,800 410
------
2,847
Diversified Operations-4.6%
Fortune Brands, Inc. ............................... 6,100 228
Frontier Corp. ..................................... 8,100 161
General Electric Co. ............................... 8,600 562
Minnesota Mining & Manufacturing Co. ............... 3,000 306
Sara Lee Corp. ..................................... 3,800 158
Unilever NV ........................................ 1,600 349
Western Resources, Inc. ............................ 6,600 214
------
1,978
Electronic Products-1.2%
AMP, Inc. .......................................... 7,300 305
Hubbell, Inc. - Cl. B .............................. 5,100 224
------
529
Financial Services-1.2%
American Express Co. ............................... 3,700 276
H & R Block, Inc. .................................. 8,100 261
------
537
Food, Beverage and Tobacco-6.1%
Anheuser-Busch Cos., Inc. .......................... 8,200 344
Gallaher Group plc - ADR* .......................... 5,000 92
General Mills, Inc. ................................ 6,500 423
H.J. Heinz Co. ..................................... 6,600 304
Kellogg Co. ........................................ 2,900 248
</TABLE>
66
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Food, Beverage and Tobacco-Continued
McCormick & Co., Inc. .............................. 9,400 $ 237
Philip Morris Cos., Inc. ........................... 6,200 275
Quaker Oats Co. .................................... 8,400 377
UST, Inc. .......................................... 13,000 361
------
2,661
Foreign-5.3%
British Petroleum Co. plc - ADR .................... 4,200 314
Cadbury Schweppes plc .............................. 5,600 50
Exel, Ltd. ......................................... 5,600 295
Grand Metropolitan plc - ADR ....................... 2,100 82
Imperial Chemical Industries plc - ADR ............. 4,300 245
Lonrho plc ......................................... 47,200 100
Novartis AG * ...................................... 202 323
Repsol SA - ADR .................................... 4,100 174
Royal Dutch Petroleum Co. - NY Shares .............. 7,200 392
Smith & Nephew plc ................................. 2,000 6
Tomkins plc ........................................ 45,500 197
Willis Corroon Group plc ........................... 9,900 111
------
2,289
Government Agencies-0.8%
Federal National Mortgage Assoc .................... 7,600 332
Health Products and Services-4.2%
Abbott Laboratories ................................ 5,300 354
American Home Products Corp. * ..................... 5,000 383
Bausch & Lomb, Inc. ................................ 6,500 306
Baxter International, Inc. ......................... 4,300 225
C.R. Bard, Inc. .................................... 5,000 182
Pharmacia & Upjohn, Inc. ........................... 10,300 358
------
1,808
Household and Personal-0.6%
Whirlpool Corp. .................................... 5,100 278
Insurance-3.9%
American General Corp. ............................. 7,600 363
Hilb, Rogal & Hamilton Co. ......................... 2,000 34
Lincoln National Corp. ............................. 2,600 167
Safeco Corp. ....................................... 5,700 266
St. Paul Cos., Inc. ................................ 5,500 419
Travelers Group, Inc. .............................. 4,700 296
USF & G Corp. ...................................... 5,400 130
------
1,675
Lodging and Restaurants-0.7%
ITT Corp. * ........................................ 5,000 305
Machinery and Equipment-0.6%
Cooper Industries, Inc. ............................ 5,100 254
Media-2.5%
Dow Jones & Co., Inc. .............................. 7,100 285
Gannett Co., Inc. .................................. 1,500 148
Knight-Ridder, Inc. ................................ 8,300 407
McGraw-Hill Cos., Inc. ............................. 3,800 223
------
1,063
Metals and Mining-1.5%
Newmont Mining Corp. ............................... 8,400 328
Reynolds Metals Co. ................................ 4,600 328
------
656
Miscellaneous-1.0%
Brown-Forman Corp. - Cl. B ......................... 4,400 215
Pall Corp. ......................................... 9,200 214
------
429
Oils and Natural Gas Exploration and Production-8.0%
Amerada Hess Corp. ................................. 3,600 200
Amoco Corp. ........................................ 4,000 348
</TABLE>
67
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Oils and Natural Gas Exploration and
Production-Continued
Atlantic Richfield Co. ............................. 9,300 $ 656
Chevron Corp. ...................................... 5,100 377
Exxon Corp. ........................................ 9,600 590
Mobil Corp. ........................................ 5,200 363
Phillips Petroleum Co. ............................. 5,200 228
Texaco, Inc. ....................................... 4,400 479
USX-Marathon Group ................................. 8,100 234
------
3,475
Paper and Forest Products-3.2%
Consolidated Papers, Inc. .......................... 5,500 297
Georgia Pacific Corp. .............................. 4,900 418
International Paper Co. ............................ 5,800 282
Union Camp Corp. ................................... 8,100 405
------
1,402
Printing-0.9%
Deluxe Corp. ....................................... 2,900 99
R.R. Donnelley & Sons Co. .......................... 8,000 293
------
392
Publications-0.5%
Readers Digest Association, Inc. - Cl. A ........... 7,000 201
Readers Digest Association, Inc. - Cl. B ........... 1,100 30
------
231
Real Estate Development-0.2%
Rouse Co. .......................................... 2,900 86
Real Estate Investment Trust-1.4%
Security Capital Pacific Trust ..................... 3,100 71
Simon DeBartolo Group, Inc. ........................ 13,096 419
Weingarten Realty Investors ........................ 2,300 97
------
587
Retail-1.8%
J.C. Penney, Inc. .................................. 8,700 454
Limited, Inc. ...................................... 5,100 103
May Department Stores Co. .......................... 4,500 213
------
770
Soap, Cosmetics and Personal Care-2.1%
International Flavors & Fragrances, Inc. ........... 10,000 505
Tambrands, Inc. .................................... 8,500 424
------
929
Transportation-2.0%
Alexander & Baldwin, Inc. .......................... 2,600 68
Burlington Northern Santa Fe ....................... 3,700 333
GATX Corp. ......................................... 1,600 92
Union Pacific Corp. ................................ 5,400 381
------
874
Utilities - Electric-6.8%
Baltimore Gas & Electric Co. ....................... 5,500 147
Centerior Energy Corp. ............................. 9,600 107
Central & South West Corp. ......................... 5,900 125
Dominion Resources, Inc. ........................... 6,800 249
DQE, Inc. .......................................... 5,900 167
Duke Energy Co. .................................... 8,400 403
Edison International ............................... 4,600 114
Entergy Corp. ...................................... 5,700 156
Florida Progress Corp. ............................. 2,200 69
GPU, Inc. .......................................... 2,400 86
Ohio Edison Co. .................................... 8,000 175
PacifiCorp ......................................... 8,300 183
Peco Energy Co. .................................... 8,400 176
PG & E Corp. ....................................... 5,600 136
Public Services Enterprise Group, Inc. ............. 5,600 140
</TABLE>
68
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Utilities - Electric-Continued
Southern Co. ....................................... 11,000 $ 241
Unicom Corp. ....................................... 11,100 247
-------
2,921
Utilities - Telecommunications-6.7%
Alltel Corp. ....................................... 12,700 425
AT & T Corp. ....................................... 11,100 389
BCE, Inc. .......................................... 8,000 224
Bell Atlantic Corp. ................................ 5,100 387
BellSouth Corp. .................................... 6,700 311
GTE Corp. .......................................... 6,300 276
SBC Communications, Inc. ........................... 5,433 336
Southern New England Telecommunications Corp. ...... 4,700 183
Sprint Corp. ....................................... 3,400 179
U.S. West Communications Group ..................... 4,800 181
-------
2,891
-------
TOTAL COMMON STOCK- 86.6% 37,492
<CAPTION>
Par
Value
(000's)
PUBLICLY-TRADED BONDS
U.S. Governmental-1.6%
U.S. Treasury - Notes
5.875% due 11/15/99 .............................. $ 200 199
6.50% due 5/31/01 ................................ 200 201
5.75% due 8/15/03 ................................ 150 145
7.00% due 7/15/06 ................................ 150 154
-------
TOTAL PUBLICLY-TRADED BONDS- 1.6% 699
COMMERCIAL PAPER
General Electric Capital Corp.
5.52% due 7/21/97 ................................ $ 592 $ 590
5.53% due 7/21/97 ................................ 100 100
Motorola, Inc.
5.50% due 8/05/97 ................................ 1,008 1,003
Progress Capital Holdings, Inc.
5.52% due 7/02/97 ................................ 350 350
RTZ America, Inc.
5.56% due 7/07/97 ................................ 500 500
Siemens Capital Corp.
5.50% due 8/20/97 ................................ 1,406 1,395
Western Australian Treasury
5.50% due 7/11/97 ................................ 1,080 1,078
-------
TOTAL COMMERCIAL PAPER- 11.6% 5,016
------- -------
TOTAL INVESTMENTS- 99.8% 43,207
Cash and receivables, less payables- 0.2% 71
------- -------
NET ASSETS- 100.0% $43,278
======= =======
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
69
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
MEDIUM TERM NOTES-2.0%
Banks and Finance-2.0%
BankBoston Corp.
5.72% due 7/07/97 .................................. $ 4,500 $ 4,561
CERTIFICATES OF DEPOSIT-2.3%
Foreign-2.3%
Westpac Banking Corp.
5.97% due 3/24/98 .................................. 5,000 5,079
COMMERCIAL PAPER-95.7%
Automotive and Rubber-7.8%
American Honda Finance Corp.
5.62% due 7/09/97 .................................. 2,899 2,895
BMW U.S. Capital Corp.
5.57% due 7/07/97 .................................. 4,533 4,529
General Motors Acceptance Corp.
5.58% due 7/21/97 .................................. 3,200 3,190
5.59% due 7/29/97 .................................. 4,418 4,399
5.65% due 7/30/97 .................................. 2,300 2,290
-------
17,303
Banks and Finance-5.8%
Fleet Funding Corp.
5.58% due 7/09/97 .................................. 1,840 1,838
MBNA America Bank N.A
5.75% due 7/21/97 .................................. 11,000 11,123
-------
12,961
Diversified Operations-3.4%
Mitsui & Co., Inc. USA
5.65% due 7/07/97 .................................. 1,500 1,499
5.69% due 7/18/97 .................................. 6,000 5,984
-------
7,483
Financial Services-45.2%
Alpine Securitization Corp.
5.56% due 7/07/97 .................................. 5,461 5,456
Clipper Receivables Corp.
5.60% due 8/04/97 .................................. 10,000 9,947
Enterprise Funding Corp.
5.60% due 8/11/97 .................................. 6,000 5,962
Falcon Asset Securitization
5.57% due 7/21/97 .................................. 3,000 2,991
5.58% due 7/22/97 .................................. 3,000 2,990
5.60% due 8/04/97 .................................. 4,590 4,566
Goldman Sachs Group LP
5.62% due 9/02/97 .................................. 4,000 3,961
5.55% due 9/03/97 .................................. 7,038 6,969
Greenwich Funding Corp.
5.57% due 7/08/97 .................................. 874 873
5.57% due 8/12/97 .................................. 2,492 2,476
Lehman Brothers Holdings, Inc.
5.68% due 8/12/97 .................................. 4,681 4,650
5.80% due 3/05/98 .................................. 6,000 5,761
Merrill Lynch & Co., Inc.
5.61% due 8/26/97 .................................. 1,000 991
5.65% due 9/30/97 .................................. 2,000 1,971
Merrill Lynch International Australia, Ltd.
5.57% due 7/24/97 .................................. 4,000 3,986
PHH Group, Inc.
5.57% due 7/25/97 .................................. 10,000 9,963
Preferred Receivables Funding Corp.
5.55% due 7/09/97 .................................. 2,420 2,417
5.62% due 8/14/97 .................................. 1,528 1,518
</TABLE>
70
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
COMMERCIAL PAPER-CONTINUED
Financial Services-Continued
Rank Xerox Capital Europe plc
6.30% due 7/01/97 ................................... $ 2,290 $ 2,290
Sheffield Receivables Corp.
5.57% due 7/07/97 ................................... 2,957 2,954
Sigma Finance Corp.
5.66% due 7/28/97 ................................... 2,000 1,992
5.65% due 8/04/97 ................................... 5,000 4,973
Sigma Finance, Inc.
5.64% due 9/10/97 ................................... 1,400 1,384
Twin Towers, Inc.
5.59% due 7/15/97 ................................... 2,000 1,996
5.64% due 7/18/97 ................................... 2,000 1,995
5.66% due 7/21/97 ................................... 3,186 3,176
5.64% due 7/21/97 ................................... 2,500 2,492
--------
100,700
Food, Beverage and Tobacco-11.9%
B.A.T. Capital Corp.
5.56% due 7/22/97 ................................... 6,000 5,981
5.58% due 7/25/97 ................................... 4,025 4,010
Coca Cola Co.
5.63% due 8/20/97 ................................... 8,000 7,937
5.65% due 8/27/97 ................................... 3,000 2,973
Philip Morris Cos., Inc.
5.68% due 7/14/97 ................................... 5,562 5,551
--------
26,452
Foreign-15.8%
BT Bank of Canada
5.64% due 7/23/97 ................................... 10,000 10,061
Commonwealth Bank of Australia
5.57% due 9/04/97 ................................... 2,000 1,980
National Bank of Canada
5.75% due 7/14/97 ................................... 10,000 10,121
Sanwa Business Credit Corp.
6.00% due 7/08/97 ................................... 6,000 5,993
5.75% due 7/11/97 ................................... 5,000 4,992
Westpac Capital Corp. .................................
5.60% due 9/05/97 ................................... 2,000 1,979
--------
35,126
Foreign Governmental-2.6%
Kingdom of Sweden
5.60% due 12/05/97 .................................. 6,000 5,853
Health Products and Services-0.9%
AC Acquisition Holding Co.
5.60% due 8/11/97 ................................... 2,000 1,987
Utilities - Electric-1.9%
Oyster Creek Fuel Corp.
5.60% due 7/11/97 ................................... 4,349 4,342
Utilities - Telecommunications-0.4%
MCI Communications Corp.
5.64% due 10/14/97 .................................. 1,000 984
--------
TOTAL COMMERCIAL PAPER- 95.7% 213,191
-------- --------
TOTAL INVESTMENTS- 100.0% 222,831
Payables, less cash and receivables- (0.0)% (41)
-------- --------
NET ASSETS- 100.0% $222,790
======== ========
</TABLE>
See notes to financial statements
71
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
<TABLE>
<CAPTION>
June 30, 1997
- -----------------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
<S> <C> <C>
Automotive and Rubber-4.0%
Chrysler Corp. ....................................... 11,800 $ 387
Goodyear Tire & Rubber Co. ........................... 3,700 234
Lear Corp. * ......................................... 8,700 386
------
1,007
Banks and Finance-1.0%
Wells Fargo & Co. .................................... 900 243
Building Products-0.8%
USG Corp. * .......................................... 5,800 212
Business Services-1.4%
ACNielson Corp. * .................................... 17,800 349
Chemicals-6.1%
Cabot Corp. .......................................... 11,000 312
E.I. du Pont de Nemours & Co. ........................ 3,600 226
IMC Global, Inc. ..................................... 6,900 242
Morton International, Inc. ........................... 11,300 341
W.R. Grace & Co. ..................................... 7,200 397
------
1,518
Computer Software and Services-2.5%
Autodesk, Inc. ....................................... 8,900 341
Cabletron Systems, Inc. * ............................ 10,000 283
------
624
Computers & Office Equipment-4.8%
3Com Corp. * ......................................... 2,500 113
Compaq Computer Corp. * .............................. 1,900 189
Komag, Inc. * ........................................ 16,300 267
Seagate Technology, Inc. * ........................... 9,000 317
Western Digital Corp. * .............................. 9,600 304
------
1,190
Diversified Operations-4.7%
Kansas City Southern Industries, Inc. ................ 5,100 329
Raychem Corp. ........................................ 6,000 446
Tele-Communications International, Inc. * ............ 3,100 48
Varian Associates, Inc. .............................. 6,300 342
------
1,165
Electronic Products-8.4%
Analog Devices, Inc. * ............................... 20,200 537
Arrow Electronics, Inc. * ............................ 2,300 122
Etec Systems, Inc. * ................................. 8,000 343
KLA Instruments Corp. * .............................. 8,000 390
Micron Technology, Inc. .............................. 9,400 375
Texas Instruments, Inc. .............................. 4,000 336
------
2,103
Financial Services-1.4%
Capital One Financial Corp. .......................... 9,200 347
Food, Beverage and Tobacco-2.3%
IBP, Inc. ............................................ 10,600 246
UST, Inc. ............................................ 12,000 333
------
579
Foreign-3.4%
Exel, Ltd. ........................................... 12,300 649
Gulf Canada Resources, Ltd. * ........................ 25,100 209
------
858
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Health Products and Services-3.8%
Allegiance Corp......................................... 10,900 $ 297
Biogen, Inc. * ......................................... 7,300 247
Columbia/HCA Healthcare Corp............................ 10,500 413
Fresenius Medical Care AG - Pref.* ..................... 2,500 0
------
957
Household and Personal-1.4%
Tupperware Corp......................................... 9,700 354
Insurance-3.2%
Allstate Corp........................................... 2,700 197
Equitable Cos., Inc..................................... 6,600 219
Progressive Corp........................................ 4,300 374
------
790
Leisure and Recreation Products and Services-1.4%
Circus Circus Enterprises * ............................ 14,100 347
Lodging and Restaurants-5.8%
Host Marriott Corp. * .................................. 37,800 673
La Quinta Inns, Inc..................................... 7,900 173
Mirage Resorts, Inc..................................... 24,200 611
------
1,457
Machinery and Equipment-0.4%
Mark IV Industries, Inc................................. 4,200 101
Media-8.0%
Comcast Corp. - Cl. A .................................. 27,927 597
E.W. Scripps Co. - Cl. A ............................... 3,200 133
Evergreen Media Corp.................................... 6,900 308
Knight-Ridder, Inc...................................... 9,400 461
Time Warner, Inc........................................ 4,000 193
Young Broadcasting Corp. * ............................. 9,200 299
------
1,991
Metals and Mining-1.6%
AK Steel Holding Corp................................... 9,200 406
Miscellaneous-2.3%
Millipore Corp. ........................................ 7,600 334
Owens-Illinois, Inc. * ................................. 8,000 248
------
582
Oils and Natural Gas Equipment and Services-1.9%
Tidewater, Inc. ........................................ 10,500 462
Oils and Natural Gas Exploration and Production-6.6%
Tejas Gas Corp. * ...................................... 9,300 365
Triton Energy, Ltd. - Cl. A* ........................... 9,000 412
Union Pacific Resources Group, Inc. .................... 23,993 597
United Meridian Corp. * ................................ 8,800 264
------
1,638
Paper and Forest Products-3.0%
Mead Corp. ............................................. 5,700 355
Temple-Inland, Inc. .................................... 7,500 405
------
760
Retail-3.9%
Costco Cos., Inc. * .................................... 12,400 408
Footstar, Inc. * ....................................... 1 0
Harcourt General, Inc. ................................. 11,700 557
------
965
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Telecommunications-1.8%
Airtouch Communications, Inc. * .................... 10,700 $ 293
Loral Space & Communications * ..................... 10,700 161
-------
454
Transportation-2.9%
Continental Airlines, Inc. * ....................... 14,200 496
Southwest Airlines Co. ............................ 8,400 217
-------
713
-------
TOTAL COMMON STOCK- 88.8% 22,172
Par
Value
(000's)
SHORT-TERM INVESTMENTS-11.6%
Investment in joint trading account (Note B)
5.81% due 7/01/97.................................. $2,891 2,892
------- -------
TOTAL INVESTMENTS- 100.4% 25,064
Payables, less cash and receivables- (0.4)% (107)
------- -------
NET ASSETS- 100.0% $24,957
======= =======
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statement.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Basic Material-0.1%
Metals and Mining-0.1%
Stillwater Mining Co. * ............................... 8,700 $ 187
Capital Equipment-10.6%
Aerospace-3.6%
Northrop Grumman Corp. ................................ 44,000 3,864
Tracor, Inc. * ........................................ 146,000 3,668
-------
7,532
Building Products-1.4%
Masco Corp. ........................................... 71,000 2,964
Machinery and Equipment-5.6%
Allied Signal, Inc. ................................... 65,000 5,459
Crane Co. ............................................. 72,000 3,011
PACCAR, Inc. .......................................... 68,000 3,145
-------
11,615
Consumer Cyclical-3.2%
Household and Personal-2.1%
Newell Co. ............................................ 110,000 4,359
Textiles-1.1%
Jones Apparel Group, Inc. * ........................... 46,500 2,220
Consumer Staple-10.2%
Food, Beverage and Tobacco-8.5%
ConAgra, Inc. ......................................... 82,500 5,290
Morningstar Group, Inc. * ............................. 116,000 3,408
Pioneer Hi-Bred International, Inc. ................... 28,500 2,280
Quaker Oats Co. ....................................... 40,000 1,795
Smithfield Foods, Inc. * .............................. 79,500 4,889
-------
17,662
Soap, Cosmetics and Personal Care-1.7%
Alberto-Culver Co. .................................... 127,000 3,556
Diversified and Miscellaneous-3.9%
Miscellaneous-3.9%
Dekalb Genetics Corp. ................................. 32,000 2,552
Jostens, Inc. ......................................... 40,000 1,070
Philip Services Corp. * ............................... 175,800 2,791
Samsonite Corp. * ..................................... 40,500 1,787
-------
8,200
Energy-8.6%
Oils and Natural Gas Equipment and Services-7.5%
BJ Services Co. * ..................................... 47,000 2,520
EVI, Inc. * ........................................... 125,600 5,275
Falcon Drilling Co., Inc. * ........................... 41,500 2,391
Halliburton Co. ....................................... 33,000 2,615
National-Oilwell, Inc. * .............................. 51,000 2,933
-------
15,734
Oils and Natural Gas Exploration and Production-1.1%
Ocean Energy, Inc. .................................... 48,000 2,220
Financial-23.2%
Banks and Finance-11.9%
Banc One Corp. ........................................ 95,000 4,602
</TABLE>
75
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Banks and Finance-Continued
Charter One Financial, Inc. ....................... 105,300 $ 5,672
Comerica, Inc. .................................... 46,000 3,128
Compass Bancshares, Inc. .......................... 92,000 3,094
Crestar Financial Corp. ........................... 108,000 4,199
Firstar Corp. ..................................... 134,000 4,087
-------
24,782
Financial Services-0.9%
Raymond James Financial, Inc. ..................... 64,000 1,752
Insurance-10.4%
Allmerica Financial Corp. ......................... 105,000 4,187
American General Corp. ............................ 92,000 4,393
General Re Corp. .................................. 24,000 4,368
St. Paul Cos., Inc. ............................... 54,500 4,156
Travelers Property Casualty Corp. - Cl. A ......... 115,000 4,586
-------
21,690
Foreign-7.2%
Foreign-7.2%
Canadian Natural Resources, Ltd. * ................ 79,000 2,051
Compania de Minas Buenaventura SA - ADR* .......... 23,000 453
Elan Corp. plc - ADR* ............................. 100,000 4,525
Gulf Canada Resources, Ltd. * ..................... 347,000 2,884
Next plc .......................................... 110,000 1,242
Oy Nokia AB - ADR ................................. 41,000 3,024
PizzaExpress plc .................................. 73,300 769
-------
14,948
Health Care-12.1%
Health Products and Services-12.1%
AmeriSource Health Corp. - Cl. A* ................. 86,000 4,289
Amgen, Inc. * ..................................... 57,000 3,313
CVS Corp. ......................................... 95,000 4,869
DePuy, Inc. * ..................................... 85,000 1,955
NovaCare, Inc. * .................................. 176,000 2,442
Oxford Health Plans, Inc. * ....................... 43,000 3,085
Sofamor Danek Group, Inc. * ....................... 38,000 1,739
Tenet Healthcare Corp. ............................ 74,000 2,188
Universal Health Services, Inc. * ................. 36,000 1,386
-------
25,266
Retail-7.3%
Retail-7.3%
Dollar General Corp. .............................. 59,000 2,213
Gap, Inc. ......................................... 85,000 3,304
Payless Shoesource, Inc. * ........................ 39,000 2,133
Ross Stores, Inc. ................................. 138,000 4,511
Stage Stores, Inc. * .............................. 115,000 2,990
-------
15,151
Technology-8.8%
Computer Software and Services-3.0%
Compuware Corp. * ................................. 51,000 2,435
McAfee Associates, Inc. ........................... 61,000 3,851
-------
6,286
Electronic Products-4.6%
Applied Materials, Inc. * ......................... 18,500 1,310
Honeywell, Inc. ................................... 70,500 5,348
</TABLE>
76
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Electronic Products-Continued
Sunstrand Corp. ............................ 10,000 $ 558
Texas Instruments, Inc. .................... 27,000 2,270
--------
9,486
Telecommunications-1.2%
DSC Communications Corp. * ................. 112,000 2,492
Transportation-0.9%
Transportation-0.9%
CNF Transportation, Inc. ................... 61,900 1,996
--------
TOTAL COMMON STOCK- 96.1% 200,098
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
JOINT REPURCHASE AGREEMENT-2.8%
Investment in joint repurchase agreement
with Toronto Dominion Securities (USA), Inc.
dated 6/30/97 5.97% due 7/01/97(a)............ $ 5,823 5,824
-------- --------
TOTAL INVESTMENTS- 98.9% 205,922
Cash, less payables and receivables- 1.1% 2,296
-------- --------
NET ASSETS- 100.0% $208,218
======== ========
(a) The repurchase agreement, dated 6/30/97, is fully collateralized by U.S.
government obligations based on market prices at the date of the purchase.
The investment in repurchase agreement is through participation in a joint
account with other portfolios advised by John Hancock.
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
</TABLE>
77
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
<TABLE>
<CAPTION>
June 30, 1997
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Lodging and Restaurants-3.2%
Host Marriott Corp. * .................................. 320,000 $ 5,700
Real Estate Development-4.7%
Catellus Development Corp. * ........................... 230,000 4,169
Highwoods Properties, Inc. ............................. 125,000 4,000
--------
8,169
Real Estate Investment Trust-90.0%
AMLI Residential Properties Trust ...................... 155,000 3,643
Avalon Properties, Inc. ................................ 150,000 4,294
Bay Apartment Communities, Inc. ........................ 74,000 2,738
Beacon Properties Corp. ................................ 110,000 3,671
Bradley Real Estate, Inc. .............................. 150,000 2,888
BRE Properties, Inc. ................................... 209,000 5,251
Burnham Pacific Properties, Inc. ....................... 185,000 2,544
Cali Realty Corp. ...................................... 105,000 3,570
Camden Property Trust .................................. 100,000 3,163
CarrAmerica Realty Corp. ............................... 150,000 4,313
Centerpoint Properties Corp. ........................... 86,000 2,731
Chateau Communities, Inc. .............................. 158,180 4,528
Developers Diversified Realty Corp. .................... 110,000 4,400
Duke Realty Investments, Inc. .......................... 100,000 4,050
Equity Residential Properties Trust .................... 130,000 6,174
Evans Withycombe Residential, Inc. ..................... 130,000 2,698
Federal Realty Investment Trust ........................ 125,000 3,375
Glimcher Realty Trust .................................. 185,100 3,818
JDN Realty Corp. ....................................... 130,000 4,063
JP Realty, Inc. ........................................ 152,000 4,123
Kilroy Realty Corp. .................................... 113,100 2,856
Kimco Realty Corp. ..................................... 100,000 3,175
Liberty Property Trust ................................. 200,000 4,975
MGI Properties, Inc. ................................... 165,000 3,640
Oasis Residential, Inc. ................................ 135,800 3,191
Pacific Gulf Properties, Inc. .......................... 171,000 3,762
Patriot American Hospitality, Inc. ..................... 258,000 6,578
Post Properties, Inc. .................................. 103,700 4,206
Prentiss Properties Trust .............................. 130,900 3,354
Regency Realty Corp. ................................... 105,000 2,861
RFS Hotel Investors, Inc. .............................. 140,000 2,520
Security Capital Industrial Trust ...................... 158,638 3,411
Security Capital Pacific Trust ......................... 200,428 4,585
Simon DeBartolo Group, Inc. ............................ 155,000 4,960
Sovran Self Storage, Inc. .............................. 100,000 2,925
Starwood Lodging Trust ................................. 95,000 4,055
Storage USA, Inc. ...................................... 125,000 4,781
Sun Communities, Inc. .................................. 100,000 3,356
United Dominion Realty Trust, Inc. ..................... 408,326 5,792
Weeks Corp. ............................................ 90,000 2,813
Western Investment Real Estate Trust ................... 170,000 2,359
Winston Hotels, Inc. ................................... 125,000 1,883
--------
158,073
--------
TOTAL COMMON STOCK- 97.9% 171,942
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-1.6%
Investment in joint trading account (Note B)
5.81% due 7/01/97..................................... $ 2,741 2,742
-------- --------
TOTAL INVESTMENTS- 99.5% 174,684
Cash and receivables, less payables- 0.5% 909
-------- --------
NET ASSETS- 100.0% $175,593
======== ========
</TABLE>
* Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace-2.7%
Northrop Grumman Corp. ............................ 214,700 $ 18,853
United Technologies Corp. ......................... 565,400 46,928
--------
65,781
Automotive and Rubber-3.5%
Borg-Warner Automotive, Inc. ...................... 71,900 3,887
Chrysler Corp. .................................... 291,800 9,575
Dana Corp. ........................................ 440,800 16,750
Ford Motor Co. .................................... 453,700 17,127
General Motors Corp. .............................. 659,600 36,731
Goodyear Tire & Rubber Co. ........................ 39,600 2,507
--------
86,577
Banks and Finance-9.4%
Bank of New York Co., Inc. ........................ 339,200 14,755
BankAmerica Corp. ................................. 1,144,600 73,899
BankBoston Corp. .................................. 130,800 9,426
Bankers Trust New York Corp. ...................... 101,000 8,787
Chase Manhattan Corp. ............................. 328,600 31,895
Citicorp .......................................... 92,500 11,152
Comerica, Inc. .................................... 176,200 11,982
First Bank System, Inc. ........................... 152,400 13,011
First Union Corp. ................................. 132,100 12,219
J.P. Morgan & Co., Inc. ........................... 51,400 5,365
MBNA Corp. ........................................ 321,600 11,779
Norwest Corp. ..................................... 485,000 27,281
--------
231,551
Building Products-0.3%
Masco Corp. ....................................... 181,800 7,590
Chemicals-4.5%
Air Products & Chemicals, Inc. .................... 386,000 31,363
E.I. du Pont de Nemours & Co. ..................... 868,600 54,613
Ethyl Corp. ....................................... 478,900 4,430
Hercules, Inc. .................................... 90,300 4,323
Monsanto Co. ...................................... 135,200 5,822
Praxair, Inc. ..................................... 127,700 7,151
Rohm & Haas Co. ................................... 21,500 1,936
--------
109,638
Computer Software and Services-5.2%
Adobe Systems, Inc. ............................... 89,500 3,138
Cadence Design Systems, Inc. * .................... 235,900 7,903
Computer Associates International, Inc. ........... 501,200 27,911
Electronic Data Systems Corp. ..................... 175,300 7,187
Microsoft Corp. ................................... 523,400 66,146
Oracle Corp. * .................................... 290,000 14,609
Policy Management Systems Corp. * ................. 30,000 1,410
--------
128,304
Computers & Office Equipment-6.1%
Compaq Computer Corp. * ........................... 332,300 32,981
Hewlett-Packard Co. ............................... 952,200 53,323
IBM Corp. ......................................... 306,800 27,670
Komag, Inc. * ..................................... 135,100 2,212
Pitney Bowes, Inc. ................................ 244,300 16,979
Sun Microsystems, Inc. * .......................... 125,000 4,652
Xerox Corp. ....................................... 151,500 11,950
--------
149,767
Diversified Operations-6.9%
B.F. Goodrich Co. ................................. 105,200 4,556
Canadian Pacific, Ltd. ............................ 480,700 13,670
General Electric Co. .............................. 1,364,400 89,199
</TABLE>
79
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
Diversified Operations-Continued
<S> <C> <C>
Ogden Corp. ....................................... 122,568 $ 2,666
Raychem Corp. ..................................... 71,100 5,288
Textron, Inc. ..................................... 589,600 39,135
Trinity Industries, Inc. .......................... 115,300 3,661
Whitman Corp. ..................................... 458,000 10,992
--------
169,167
Electronic Products-2.7%
Analog Devices, Inc. * ............................ 66 2
Honeywell, Inc. ................................... 149,400 11,336
Intel Corp. ....................................... 336,200 47,677
Rockwell International Corp. * .................... 89,400 5,275
Tektronix, Inc. ................................... 51,500 3,090
--------
67,380
Financial Services-1.7%
American Express Co. .............................. 222,000 16,539
Morgan Stanley, Dean Witter, Discover and Co. ..... 590,000 25,407
--------
41,946
Food, Beverage and Tobacco-3.4%
ConAgra, Inc. ......................................... 265,400 17,019
Flowers Industries, Inc. .............................. 387,450 6,514
PepsiCo, Inc. ......................................... 226,100 8,493
Philip Morris Cos., Inc. .............................. 957,300 42,480
Universal Foods Corp. ................................. 233,900 8,917
--------
83,423
Foreign-1.9%
British Petroleum Co. plc - ADR ....................... 185,400 13,882
British Steel plc - ADR ............................... 257,400 6,499
Glaxo Wellcome plc - ADR .............................. 278,500 11,645
Imperial Oil, Ltd. .................................... 271,500 13,948
--------
45,974
Health Products and Services-12.7%
Abbott Laboratories ................................... 529,000 35,311
Allegiance Corp. ...................................... 232,000 6,322
Alza Corp. * .......................................... 168,500 4,887
Amgen, Inc. * ......................................... 141,200 8,207
Becton, Dickinson & Co. ............................... 169,900 8,601
Bristol-Myers Squibb Co. .............................. 245,800 19,910
Cardinal Health, Inc. ................................. 539,200 30,869
Columbia/HCA Healthcare Corp. ......................... 193,250 7,597
Guidant Corp. ......................................... 55,200 4,692
Health Management Assoc., Inc. - Cl. A* ............... 36,843 1,050
HEALTHSOUTH Corp. * ................................... 198,000 4,938
Hillenbrand Industries, Inc. .......................... 134,900 6,408
Johnson & Johnson ..................................... 802,600 51,667
Medtronic, Inc. ....................................... 123,000 9,963
Merck & Co., Inc. ..................................... 588,400 60,899
Schering-Plough Corp. ................................. 319,000 15,272
Vencor, Inc. * ........................................ 43,200 1,825
Warner-Lambert Co. .................................... 265,900 33,038
--------
311,456
Insurance-6.6%
American International Group, Inc. .................... 144,500 21,585
Cigna Corp. ........................................... 224,400 39,831
Equitable Cos., Inc. .................................. 45,000 1,496
General Re Corp. ...................................... 242,800 44,190
Hartford Financial Services Group, Inc. ............... 308,400 25,520
</TABLE>
80
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Insurance-Continued
Marsh & McLennan Cos., Inc. ........................... 433,800 $ 30,962
--------
163,584
Leisure and Recreation Products and Services-0.4%
The Walt Disney Co. ................................... 126,200 10,128
Lodging and Restaurants-1.1%
HFS, Inc. * ........................................... 332,700 19,297
Hilton Hotels Corp. ................................... 284,400 7,554
--------
26,851
Machinery and Equipment-2.7%
Allied Signal, Inc. ................................... 132,500 11,130
Caterpillar, Inc. ..................................... 29,700 3,189
Cooper Industries, Inc. ............................... 348,700 17,348
Dover Corp. ........................................... 151,300 9,305
Ingersoll-Rand Co. .................................... 171,100 10,565
Perkin-Elmer Corp. .................................... 175,000 13,923
--------
65,460
Media-0.5%
Time Warner, Inc. ..................................... 240,600 11,609
Metals and Mining-0.2%
Precision Castparts Corp. ............................. 88,100 5,253
Miscellaneous-0.8%
American Greetings Corp. - Cl. A ...................... 191,300 7,102
Avery Dennison Corp. .................................. 336,200 13,490
--------
20,592
Oils and Natural Gas Equipment and Services-0.6%
Baker Hughes, Inc. .................................... 192,900 7,463
Halliburton Co. ....................................... 30,000 2,378
Rowan Cos., Inc. * .................................... 182,400 5,141
--------
14,982
Oils and Natural Gas Exploration and Production-7.9%
Amoco Corp. .......................................... 66,100 5,747
Anadarko Petroleum Corp. ............................. 151,000 9,060
Atlantic Richfield Co. ............................... 566,400 39,931
Chevron Corp. ........................................ 151,700 11,216
Consolidated Natural Gas Co. ......................... 159,600 8,588
El Paso Natural Gas Co. .............................. 85,000 4,675
Exxon Corp. .......................................... 281,600 17,318
Kerr-McGee Corp. ..................................... 166,600 10,558
Phillips Petroleum Co. ............................... 489,300 21,407
Texaco, Inc. ......................................... 268,600 29,210
Unocal Corp. ......................................... 684,300 26,559
USX-Marathon Group ................................... 311,500 8,995
----------
193,264
Paper and Forest Products-0.1%
Westvaco Corp. ....................................... 100,500 3,159
Photography and Related Services-0.6%
Eastman Kodak Co. .................................... 205,800 15,795
Pollution Control Equipment and Services-0.2%
Wheelabrator Technologies, Inc. ...................... 305,000 4,708
Retail-6.2%
Costco Cos., Inc. * .................................. 361,800 11,894
Dayton-Hudson Corp. .................................. 147,800 7,861
Federated Department Stores, Inc. * .................. 257,100 8,934
Home Depot, Inc. ..................................... 747,500 51,531
Liz Claiborne, Inc. .................................. 101,200 4,718
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Retail-Continued
Lowe's Cos., Inc. .................................... 431,200 $ 16,008
Nike, Inc. - Cl. B ................................... 352,500 20,577
Nine West Group, Inc. * .............................. 194,100 7,412
Staples, Inc. * ...................................... 524,300 12,190
Wal-Mart Stores, Inc. ................................ 99,500 3,364
Warnaco Group, Inc. - Cl. A .......................... 271,600 8,657
----------
153,146
Soap, Cosmetics and Personal Care-0.2%
Revlon, Inc. - Cl. A* ................................ 96,400 4,995
Telecommunications-0.6%
Lucent Technologies, Inc. ............................ 200,784 14,469
Textiles-0.1%
Fruit of the Loom, Inc. - Cl. A* ..................... 103,800 3,218
Transportation-1.1%
Delta Air Lines, Inc. ................................ 119,700 9,815
Norfolk Southern Corp. ............................... 162,700 16,392
----------
26,207
Utilities - Electric-3.6%
Dominion Resources, Inc. ............................. 472,700 17,313
DQE, Inc. ............................................ 165,200 4,667
Duke Energy Co. ...................................... 397,080 19,035
Entergy Corp. ........................................ 441,400 12,083
Hawaiian Electric Industries, Inc. ................... 140,300 5,419
Houston Industries, Inc. ............................. 489,500 10,494
Southern Co. ......................................... 94,000 2,056
Texas Utilities Co. .................................. 367,300 12,649
Unicom Corp. ......................................... 172,500 3,838
----------
87,554
Utilities - Telecommunications-2.2%
AT&T Corp. ........................................... 300,800 10,547
BellSouth Corp. ...................................... 382,100 17,720
GTE Corp. ............................................ 572,800 25,132
----------
53,399
----------
TOTAL COMMON STOCK- 96.7% 2,376,927
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-3.1% Investment in joint
trading account (Note B)
5.81% due 7/01/97................................... $ 77,783 77,820
--------- ----------
TOTAL INVESTMENTS- 99.8% 2,454,747
Cash and receivables, less payables- 0.2% 3,706
--------- ----------
NET ASSETS- 100.0% $2,458,453
========= ==========
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
82
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace-1.6%
Lockheed Martin Corp. ............................ 14,764 $ 1,529
Northrop Grumman Corp. ........................... 121,600 10,679
United Technologies Corp. ........................ 345,700 28,694
----------
40,902
Automotive and Rubber-1.8%
Borg-Warner Automotive, Inc. ..................... 17,400 941
Chrysler Corp. ................................... 250,800 8,229
Dana Corp. ....................................... 180,600 6,863
Ford Motor Co. ................................... 373,500 14,101
General Motors Corp. ............................. 254,500 14,173
Goodyear Tire & Rubber Co. ....................... 14,100 893
----------
45,200
Banks and Finance-3.7%
Bank of New York Co., Inc. ....................... 152,500 6,634
BankAmerica Corp. ................................ 321,200 20,738
BankBoston Corp. ................................. 51,300 3,697
Bankers Trust New York Corp. ..................... 44,900 3,906
Barnett Banks, Inc. .............................. 74,600 3,917
Chase Manhattan Corp. ............................ 144,600 14,036
Citicorp. ........................................ 88,000 10,611
Comerica, Inc. ................................... 80,100 5,447
First Bank System, Inc. .......................... 75,000 6,403
First Union Corp. ................................ 63,900 5,911
J.P. Morgan & Co., Inc. .......................... 38,300 3,998
MBNA Corp. ....................................... 91,800 3,362
Norwest Corp. .................................... 101,000 5,681
----------
94,341
Building Products-0.1%
Masco Corp. ...................................... 84,500 3,528
Chemicals-1.7%
Air Products & Chemicals, Inc. ................... 117,900 9,580
E.I. du Pont de Nemours & Co. .................... 363,200 22,837
Ethyl Corp. ...................................... 266,000 2,461
Monsanto Co. ..................................... 67,300 2,898
Morton International, Inc. ....................... 65,200 1,968
Praxair, Inc. .................................... 85,000 4,760
----------
44,504
Computer Software and Services-2.0%
Adobe Systems, Inc. .............................. 44,300 1,553
Cadence Design Systems, Inc. * ................... 31,500 1,055
Computer Associates International, Inc. .......... 192,700 10,732
Electronic Data Systems Corp. .................... 109,300 4,481
Microsoft Corp. .................................. 189,200 23,911
Oracle Corp. *.................................... 85,100 4,287
Parametric Technology Co. * ...................... 25,000 1,064
Policy Management Systems Corp. *................. 71,200 3,346
----------
50,429
Computers & Office Equipment-2.9%
Cisco Systems, Inc. *............................. 55,900 3,752
Compaq Computer Corp. *........................... 132,500 13,152
Dell Computer Corp. *............................. 19,200 2,255
Hewlett-Packard Co. .............................. 364,100 20,391
IBM Corp. ........................................ 178,800 16,127
Komag, Inc. * .................................... 67,200 1,100
Pitney Bowes, Inc. ............................... 78,400 5,449
</TABLE>
83
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Computers & Office Equipment-Continued
Stratus Computer, Inc. * ......................... 49,100 $ 2,455
Sun Microsystems, Inc. * ......................... 73,900 2,750
Xerox Corp. ...................................... 85,700 6,760
----------
74,191
Diversified Operations-2.8%
B.F. Goodrich Co. ................................ 55,100 2,387
Canadian Pacific, Ltd. ........................... 177,900 5,059
General Electric Co. ............................. 693,000 45,306
Illinois Tool Works, Inc. ........................ 34,000 1,698
Raychem Corp. .................................... 76,500 5,690
Textron, Inc. .................................... 117,000 7,766
Trinity Industries, Inc. ......................... 45,700 1,451
Tyco International, Ltd. ......................... 38,700 2,692
----------
72,049
Electronic Products-1.2%
Analog Devices, Inc. * ........................... 1 0
Honeywell, Inc. .................................. 74,100 5,622
Intel Corp. ...................................... 178,300 25,286
Mentor Graphics Corp. * .......................... 113,400 1,049
----------
31,957
Financial Services-0.6%
American Express Co. ............................. 67,600 5,036
Morgan Stanley, Dean Witter, Discover & Co. ...... 264,600 11,395
----------
16,431
Food, Beverage and Tobacco-2.3%
ConAgra, Inc. .................................... 130,100 8,343
Flowers Industries, Inc. ......................... 110,550 1,859
General Mills, Inc. .............................. 50,600 3,295
PepsiCo, Inc. .................................... 332,500 12,491
Philip Morris Cos., Inc. ......................... 554,100 24,589
Universal Foods Corp. ............................ 221,200 8,433
----------
59,010
Foreign-0.7%
British Petroleum Co. plc - ADR .................. 138,200 10,349
British Steel plc - ADR .......................... 99,400 2,510
Glaxo Wellcome plc - ADR ......................... 137,600 5,753
----------
18,612
Health Products and Services-6.0%
Abbott Laboratories .............................. 261,900 17,483
Allegiance Corp. ................................. 50,000 1,363
Alza Corp. * ..................................... 79,800 2,314
Amgen, Inc. * .................................... 66,300 3,854
Becton, Dickinson & Co. .......................... 85,800 4,344
Bristol-Myers Squibb Co. ......................... 156,300 12,661
Cardinal Health, Inc. ............................ 88,200 5,049
Columbia/HCA Healthcare Corp. .................... 113,400 4,458
Guidant Corp. .................................... 2,500 213
HEALTHSOUTH Corp. * .............................. 273,600 6,823
Hillenbrand Industries, Inc. ..................... 70,900 3,368
</TABLE>
84
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Health Products and Services-Continued
Johnson & Johnson .............................. 384,900 $ 24,779
Medtronic, Inc. ................................ 75,400 6,107
Merck & Co., Inc. .............................. 293,800 30,409
Schering-Plough Corp. .......................... 165,000 7,899
United Healthcare Corp. ........................ 17,900 931
Vencor, Inc. * .................................. 89,900 3,798
Warner-Lambert Co. ............................. 160,600 19,956
----------
155,809
Insurance-3.7%
American International Group, Inc. ............. 112,100 16,746
Cigna Corp. .................................... 111,800 19,846
General Re Corp. ............................... 120,600 21,950
Hartford Financial Services Group, Inc. ........ 145,400 12,033
Marsh & McLennan Cos., Inc. .................... 343,800 24,540
----------
95,115
Lodging and Restaurants-0.4%
HFS, Inc. * ..................................... 142,900 8,288
Hilton Hotels Corp. ............................ 117,000 3,108
----------
11,396
Machinery and Equipment-1.0%
Allied Signal, Inc. ............................ 71,200 5,981
Cooper Industries, Inc. ........................ 71,500 3,557
Dover Corp. .................................... 58,400 3,592
Durco International, Inc. ...................... 58,400 1,708
Ingersoll-Rand Co. ............................. 62,800 3,878
Perkin-Elmer Corp. ............................. 75,800 6,031
----------
24,747
Media-0.2%
Time Warner, Inc. .............................. 121,900 5,882
Metals and Mining-0.1%
Precision Castparts Corp. ...................... 35,300 2,105
Miscellaneous-0.5%
American Greetings Corp. - Cl. A ................ 108,900 4,043
Avery Dennison Corp. ........................... 237,200 9,519
Unisource Worldwide, Inc. ...................... 36,100 578
----------
14,140
Oils and Natural Gas Equipment and Services-0.4%
Baker Hughes, Inc. ............................. 93,000 3,598
Halliburton Co. ................................ 30,300 2,401
Schlumberger, Ltd. ............................. 37,600 4,700
----------
10,699
Oils and Natural Gas Exploration and Production-3.8%
Amoco Corp. .................................... 44,300 3,851
Anadarko Petroleum Corp. ....................... 72,900 4,374
Atlantic Richfield Co. ......................... 182,000 12,832
Chevron Corp. .................................. 148,500 10,981
Consolidated Natural Gas Co. ................... 130,100 7,001
El Paso Natural Gas Co. ........................ 30,700 1,689
Imperial Oil, Ltd. ............................. 117,500 6,037
Kerr-McGee Corp. ............................... 100,300 6,357
Phillips Petroleum Co. ......................... 362,000 15,839
Texaco, Inc. ................................... 156,600 17,031
Unocal Corp. ................................... 222,100 8,620
USX-Marathon Group ............................. 128,200 3,702
----------
98,314
</TABLE>
85
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Paper and Forest Products-0.1%
James River Corp. of Virginia .................... 66,900 $ 2,475
Photography and Related Services-0.5%
Eastman Kodak Co. ................................ 165,000 12,665
Pollution Control Equipment and Services-0.2%
Safety Kleen Corp. ............................... 91,800 1,549
Wheelabrator Technologies, Inc. .................. 152,616 2,356
---------
3,905
Real Estate Development-0.0%
Clayton Homes, Inc. .............................. 63,000 898
Retail-2.9%
Costco Cos., Inc. * .............................. 217,100 7,137
Dayton-Hudson Corp. .............................. 30,100 1,601
Federated Department Stores, Inc. * .............. 19,800 688
Home Depot, Inc. ................................. 385,400 26,570
Liz Claiborne, Inc. .............................. 89,400 4,168
Lowe's Cos., Inc. ................................ 190,800 7,083
Nike, Inc. - Cl. B ............................... 136,000 7,939
Nine West Group, Inc. * .......................... 96,700 3,693
Safeway, Inc. * .................................. 25,000 1,153
Staples, Inc. * .................................. 32,525 756
TJX Cos., Inc. .................................. 66,000 1,741
Wal-Mart Stores, Inc. ............................ 313,800 10,611
Warnaco Group, Inc. - Cl. A ...................... 18,700 596
---------
73,736
Soap, Cosmetics and Personal Care-0.1%
Revlon, Inc. * ................................... 40,000 2,073
Telecommunications-0.3%
Lucent Technologies, Inc. ........................ 125,937 9,076
Textiles-0.2%
Fruit of the Loom, Inc. - Cl. A* ................. 112,200 3,478
Tommy Hilfiger Corp. * ........................... 30,000 1,206
---------
4,684
Transportation-0.4%
Delta Air Lines, Inc. ............................ 53,200 4,362
Norfolk Southern Corp. ........................... 68,800 6,932
---------
11,294
Utilities - Electric-1.9%
Baltimore Gas & Electric Co. ..................... 30,900 825
CINergy Corp. .................................... 193,400 6,733
Dominion Resources, Inc. ......................... 208,000 7,618
DQE, Inc. ........................................ 113,300 3,201
Duke Energy Co. .................................. 99,949 4,791
Entergy Corp. .................................... 217,900 5,965
Florida Progress Corp. ........................... 139,200 4,359
Hawaiian Electric Industries, Inc. ............... 31,100 1,201
Houston Industries, Inc. ......................... 109,300 2,343
Texas Utilities Co. .............................. 187,400 6,454
Unicom Corp. ..................................... 246,000 5,474
---------
48,964
</TABLE>
86
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Utilities - Telecommunications-1.4%
AT & T Corp. ..................................... 124,200 $ 4,355
BellSouth Corp. .................................. 342,300 15,875
GTE Corp. ........................................ 359,300 15,765
---------
35,995
---------
TOTAL COMMON STOCK- 45.5% 1,175,126
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Banks and Finance-6.3%
BankAmerica Corp. - Sub. Notes
7.20% due 4/15/06............................... $ 17,060 17,121
Bankers Trust NY - Sub. Notes
8.25% due 5/01/05............................... 12,759 13,549
Capital One Bank - Sr. Notes
7.35% due 6/20/00............................... 4,530 4,594
First Union Corp. - Sub. Notes
7.05% due 8/01/05............................... 9,090 9,026
Midland Bank plc - Sub. Notes
7.625% due 6/15/06.............................. 12,890 13,306
NationsBank Corp. - Sub. Notes
6.50% due 3/15/06............................... 2,530 2,425
7.50% due 9/15/06............................... 4,500 4,605
NB Capital Trust II - Cap. Secs.
7.83% due 12/15/26.............................. 20,020 19,793
NBD Bancorp - Sub. Notes
7.125% due 5/15/07.............................. 9,520 9,449
Santander Finance Issuances, Ltd. - Bonds
7.75% due 5/15/05............................... 5,370 5,546
Societe Generale NY - Sub. Notes
7.40% due 6/01/06............................... 11,610 11,698
Society National Bank - Sub. Notes
7.25% due 6/01/05............................... 10,380 10,448
Wells Fargo & Co. - Sub. Notes
6.875% due 4/01/06.............................. 5,480 5,371
7.125% due 8/15/06.............................. 650 648
Wells Fargo Capital I - Bonds
7.96% due 12/15/26.............................. 34,580 34,115
---------
161,694
Computers & Office Equipment-0.7%
IBM Corp. - Debs.
7.125% due 12/01/96............................. 18,920 18,000
Financial Services-9.9%
American Express Co. - Debs.
8.50% due 8/15/01............................... 175 186
American General Finance Corp. - Sr. Notes
7.25% due 5/15/05............................... 4,620 4,656
Associates Corp. of N.A. - Sr. Notes
7.50% due 5/15/99............................... 1,120 1,142
Banponce Trust I - Cap. Secs.
8.327% due 2/01/27.............................. 13,015 13,096
Camden Property Trust - Med. Term Notes
7.142% due 6/21/04.............................. 6,330 6,281
</TABLE>
87
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Financial Services-Continued
Capital One Financial Corp. - Sr. Notes
7.25% due 12/01/03.............................. $ 19,000 $ 18,583
Chase Commercial Mortgage Securities Corp. -
Ser. 1997-1 Cl. A2 7.37% due 2/19/07............ 13,300 13,480
CS First Boston Mortgage Securities Corp. -
Ser. 1997-C1 Cl. A1C 7.24% due 6/20/29.......... 26,710 26,911
ERP Operating LP - Notes
7.95% due 4/15/02............................... 5,450 5,606
Fleet Capital Trust II - Unsec. Cap. Secs.
7.92% due 12/11/26.............................. 22,700 22,293
Fletcher Challenge Industries, Ltd. - Notes
9.00% due 9/15/99............................... 1,270 1,335
General Motors Acceptance Corp. - Med. Term Notes
6.80% due 5/22/01............................... 480 480
Lehman Brothers, Inc. - Sr. Sub. Notes
7.25% due 4/15/03............................... 26,770 26,900
Mellon Capital II - Unsec. Cap. Secs.
7.995% due 1/15/27.............................. 27,850 27,740
Merrill Lynch Mortgage Investors, Inc. - Ser.
1997-C1 Cl. A3 7.12% due 6/18/29................ 7,970 7,990
Mortgage Capital Funding, Inc. - Ser. 1996-MC2
Cl. A1 6.758% due 2/20/04....................... 8,900 8,876
Phillips 66 Capital Trust II - Cap. Secs.
8.00% due 1/15/37............................... 19,730 19,660
Salomon, Inc. - Sr. Notes
7.30% due 5/15/02............................... 10,090 10,162
7.20% due 2/01/04............................... 14,920 14,855
Santander Finance Issuances, Ltd. - Unsec. Sub.
Notes 7.00% due 4/01/06......................... 6,470 6,385
Sears Credit Account Master Trust
6.45% due 10/15/06.............................. 5,660 5,641
Susa Partnership LP - Notes
8.20% due 6/01/17............................... 3,480 3,493
United Dominion Realty Trust, Inc. - Notes
7.25% due 1/15/07............................... 10,010 9,963
---------
255,714
Food, Beverage and Tobacco-1.7%
Coca Cola Enterprises, Inc. - Bonds
6.70% due 10/15/36.............................. 14,250 14,285
H.J. Heinz Co. - Notes
5.50% due 9/15/97............................... 560 560
Philip Morris Cos., Inc. - Notes
8.25% due 10/15/03.............................. 26,890 28,485
---------
43,330
Foreign-3.4%
BCH Cayman Islands, Ltd. - Unsec. Sub. Notes
7.70% due 7/15/06............................... 27,144 27,745
Enersis SA
6.90% due 12/01/06.............................. 12,670 12,254
Hydro-Quebec - Debs. Ser. HS
9.40% due 2/01/21............................... 19,870 23,590
Korea Development Bank - Notes
5.875% due 12/01/98............................. 1,375 1,370
6.25% due 5/01/00............................... 10,100 9,974
</TABLE>
88
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Foreign-Continued
Petroleum Geo-Services ASA - Notes
7.50% due 3/31/07............................... $ 12,690 $ 12,837
---------
87,770
Foreign Governmental-0.5%
Province of Ontario, Canada - Sr. Unsub. Notes
7.375% due 1/27/03.............................. 750 770
Province of Quebec - Notes
5.735% due 3/02/26.............................. 12,970 12,626
---------
13,396
Government Agencies-5.9%
Federal National Mortgage Assoc.
6.36% due 8/16/00............................... 8,460 8,456
6.50% due 4/01/08 - 5/01/11..................... 45,715 44,891
7.00% due 3/01/26 - 5/01/26..................... 9,074 8,901
7.50% due 12/01/99.............................. 20,440 20,486
Government National Mortgage Assoc.
7.00% due 1/15/23 - 12/15/23.................... 10,420 10,283
7.50% due 2/15/22 - 12/15/99.................... 26,217 26,373
8.00% due 1/15/23 - 12/15/99.................... 33,541 34,386
---------
153,776
Health Products and Services-1.3%
Columbia/HCA Healthcare Corp. - Notes
7.50% due 11/15/95.............................. 11,870 11,479
Tenet Healthcare Corp. - Sr. Notes
8.00% due 1/15/05............................... 20,970 21,023
---------
32,502
Lodging and Restaurants-1.0%
Hilton Hotels Corp. - Notes
7.375% due 6/01/02.............................. 6,450 6,486
Hilton Hotels Corp.- Sr. Notes
7.95% due 4/15/07............................... 18,680 19,113
---------
25,599
Media-1.2%
News America Holdings, Inc. - Notes
8.00% due 10/17/16.............................. 13,610 13,388
Viacom, Inc. - Sr. Notes
7.75% due 6/01/05............................... 17,500 17,565
---------
30,953
Metals and Mining-0.5%
Pohang Iron & Steel Co. - Notes
7.375% due 5/15/05.............................. 13,390 13,322
Miscellaneous-1.1%
Millipore Corp. - Notes
7.50% due 4/01/07............................... 9,380 9,547
Service Corp. International - Notes
7.70% due 4/15/09............................... 18,780 19,380
---------
28,927
Real Estate Investment Trust-0.3%
Spieker Properties, Inc. - Med. Term Notes
8.00% due 7/19/05............................... 3,740 3,869
Spieker Properties, L.P. - Notes
7.125% due 12/01/06............................. 3,370 3,319
---------
7,188
</TABLE>
89
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Retail-0.8%
May Dept Stores Co. - Debs.
9.50% due 4/15/21............................... $ 4,900 $ 5,811
Sears Roebuck Acceptance Corp. - Notes
6.72% due 11/05/03.............................. 15,325 15,126
----------
20,937
Transportation-0.0%
Southwest Airlines Co. - Debs.
8.75% due 10/15/03.............................. 1,245 1,360
U.S. Governmental-17.5%
U.S. Treasury - Bonds
6.75% due 8/15/26............................... 19,000 18,805
U.S. Treasury - Notes
4.75% due 9/30/98............................... 165,820 163,568
5.125% due 11/30/98............................. 142,100 140,502
5.875% due 2/28/99.............................. 100,000 99,767
6.25% due 4/30/01............................... 28,500 28,421
----------
451,063
Utilities - Telecommunications-1.1%
GTE Southwest, Inc. - 1st Mtge. Bonds
8.50% due 11/15/31.............................. 1,950 2,185
Northwestern Bell Telephone Co. - Debs.
9.50% due 5/01/00............................... 250 268
WorldCom, Inc. - Notes
7.75% due 4/01/07............................... 24,560 24,976
----------
27,429
----------
TOTAL PUBLICLY-TRADED BONDS- 53.2% 1,372,960
SHORT-TERM INVESTMENTS- 2.4%
Investment in joint trading account (Note B)
5.81% due 7/01/97............................... 62,911 62,941
--------- ----------
TOTAL INVESTMENTS- 101.1% 2,611,027
Payables, less cash and receivables- (1.1)% (28,868)
--------- ----------
NET ASSETS- 100.0% $2,582,159
========= ==========
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statments.
90
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
SHORT-TERM U. S. GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Government Agencies-62.7%
Federal Farm Credit Banks - Bonds
8.65% due 10/01/99 ....................................... $1,020 $1,069
Federal Farm Credit Banks - Med. Term Notes
5.31% due 5/26/98 ........................................ 100 99
7.55% due 10/30/98 ....................................... 100 102
5.70% due 11/16/98 ....................................... 400 398
6.57% due 4/13/99 ........................................ 1,500 1,509
6.30% due 1/24/01 ........................................ 200 199
6.375% due 11/01/01 ...................................... 3,000 2,982
6.80% due 4/04/02 ........................................ 350 353
Federal Home Loan Banks - Bonds
5.82% due 12/02/99 ....................................... 6,000 5,943
Federal Home Loan Banks - Debs .............................
5.94% due 6/13/00 ........................................ 550 544
Federal Home Loan Banks - Notes
5.90% due 9/21/98 ........................................ 880 879
Federal Home Loan Mortgage Corp. - Debs ....................
5.02% due 2/15/99 ........................................ 420 413
6.515% due 8/25/00 ....................................... 500 502
Federal Home Loan Mortgage Corp. - Notes
6.24% due 9/07/00 ........................................ 1,000 995
Federal National Mortgage Assoc ............................
6.36% due 8/16/00 ........................................ 2,110 2,109
Federal National Mortgage Assoc. - Euro. Med. Term Notes
6.40% due 5/02/01 ........................................ 4,000 3,996
Federal National Mortgage Assoc. - Med. Term Notes
5.72% due 3/13/01 ........................................ 1,000 975
Federal National Mortgage Assoc. - Notes
9.55% due 9/10/97-12/10/97 ............................... 1,130 1,146
8.45% due 7/12/99 ........................................ 1,220 1,271
6.35% due 8/10/99 ........................................ 50 50
8.25% due 12/18/00 ....................................... 615 648
Private Export Funding Co. - Debs.
9.10% due 10/30/98 ..................................... 1,025 1,064
9.50% due 3/31/99 ...................................... 750 791
9.45% due 12/31/99 ..................................... 500 536
7.90% due 3/31/00 ...................................... 1,000 1,039
Private Export Funding Co. - Notes
5.75% due 4/30/98 ...................................... 1,650 1,648
5.50% due 3/15/01 ...................................... 700 678
State of Israel Agency for International
Development - Bonds
6.00% due 2/15/99 ...................................... 750 748
6.05% due 8/15/00 ...................................... 1,200 1,188
State of Israel Agency for International
Development - Global Notes
5.875% due 7/16/97 ..................................... 105 105
5.75% due 3/15/00 ...................................... 1,600 1,577
Tennessee Valley Authority - Global Bonds
6.00% due 11/01/00 ..................................... 4,015 3,960
-------
39,516
U.S. Governmental-33.3%
U.S. Treasury - Notes
5.125% due 4/30/98-12/31/98 ............................ 15,800 15,642
7.125% due 9/30/99 ..................................... 290 296
6.25% due 4/30/01 ...................................... 4,200 4,188
6.50% due 5/31/01 ...................................... 900 905
-------
21,031
-------
TOTAL PUBLICLY-TRADED BONDS- 96.0% 60,547
SHORT-TERM INVESTMENTS-3.1%
Investment in joint trading account (Note B)
5.81% due 7/01/97....................................... 1,926 1,927
------- -------
TOTAL INVESTMENTS- 99.0% 62,474
Cash and receivables, less payables- 1.0% 606
------- -------
NET ASSETS- 100.0% $63,080
======= =======
</TABLE>
See notes to financial statements.
91
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace-1.1%
Thiokol Corp. ....................................... 2,300 $ 161
UNC, Inc. ........................................... 4,400 64
-------
225
Automotive and Rubber-1.5%
Arvin Industries, Inc. .............................. 5,700 155
Detroit Diesel Corp. * .............................. 6,700 160
-------
315
Banks and Finance-8.1%
ALBANK Financial Corp. .............................. 2,600 103
Astoria Financial Corp. ............................. 1,100 52
CCB Financial Corp. ................................. 900 66
Cullen/Frost Bankers, Inc. .......................... 5,200 220
Deposit Guaranty Corp. .............................. 4,900 154
Glendale Federal Bank FSB * ......................... 3,300 86
Imperial Bancorp * .................................. 8,400 242
Magna Group, Inc. ................................... 6,000 209
ONBANCorp, Inc. ..................................... 1,600 82
One Valley Bancorp, Inc. ............................ 325 14
Peoples Heritage Financial Group, Inc. .............. 3,200 121
Sovereign Bancorp, Inc. ............................. 11,100 169
St. Paul Bancorp, Inc. .............................. 3,700 123
-------
1,641
Building Products-1.5%
Medusa Corp. ........................................ 4,700 180
Universal Forest Products, Inc. ..................... 4,500 66
Watsco, Inc. ........................................ 2,300 58
-------
304
-------
Business Services-1.7%
ABM Industries, Inc. ................................ 8,700 168
Norrell Corp. ....................................... 5,100 168
-------
336
Chemicals-2.2%
Dexter Corp. ........................................ 5,800 186
Ferro Corp. ......................................... 3,600 133
H.B. Fuller Co. ..................................... 2,400 132
-------
451
Computer Software and Services-3.6%
Aspen Technologies, Inc. * .......................... 700 26
BancTec, Inc. * ..................................... 4,200 109
Boole & Babbage, Inc. * ............................. 1,400 30
Computer Management Sciences, Inc. * ................ 4,000 82
Computer Task Group, Inc. ........................... 4,400 164
Harbinger Corp. * ................................... 1,350 38
Keane, Inc. * ....................................... 1,600 83
National Data Corp. ................................. 1,900 82
Remedy Corp. * ...................................... 900 36
Structural Dynamics Research Corp. * ................ 700 18
Symantec Corp. * .................................... 1,700 33
Transaction Systems Architects, Inc. - Cl. A* ....... 600 21
-------
722
Computers & Office Equipment-2.1%
Comverse Technology, Inc. * ......................... 600 31
Data General Corp. * ................................ 2,300 60
Herman Miller, Inc. ................................. 2,900 104
Network Appliance, Inc. * ........................... 1,400 53
Stratus Computer, Inc. * ............................ 1,800 90
Wang Laboratories, Inc. * ........................... 4,400 94
-------
432
Construction-0.3%
Nortek, Inc. * ...................................... 2,900 70
</TABLE>
92
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Diversified Operations-1.3%
Aeroquip-Vickers, Inc. .............................. 1,700 $ 80
Standard Commercial Corp. * ......................... 10,629 185
-------
265
Electronic Products-5.0%
Berg Electronics Corp. * ............................ 1,100 40
BMC Industries, Inc. ................................ 2,100 72
Burr-Brown Corp. * .................................. 2,500 86
Dallas Semiconductor Corp. .......................... 3,200 126
Jabil Circuit, Inc. * ............................... 900 75
Kent Electronics Corp. * ............................ 900 33
Methode Electronics, Inc. - Cl. A. .................. 3,400 68
Rexel, Inc. * ....................................... 7,100 131
Technitrol, Inc. .................................... 9,400 256
Unitrode Corp. * .................................... 2,700 136
-------
1,023
Engineering-0.5%
Stone & Webster, Inc. ............................... 2,300 98
Financial Services-1.9%
Alex. Brown, Inc. ................................... 1,150 81
Imperial Credit Industries, Inc. * .................. 7,100 146
Interra Financial, Inc. ............................. 2,400 101
Quick & Reilly Group, Inc. .......................... 2,600 60
Raymond James Financial, Inc. ....................... 100 3
-------
391
-------
Food, Beverage and Tobacco-3.5%
Adolph Coors Co. - Cl. B. ........................... 9,900 263
Dean Foods Co. ...................................... 3,700 149
DIMON, Inc. ......................................... 1,100 29
Earthgrains Co. ..................................... 600 39
Richfood Holdings, Inc. ............................. 3,100 81
Universal Corp. ..................................... 4,600 146
-------
707
Foreign-0.0%
Mutual Risk Management, Ltd. ........................ 1 0
Health Products and Services-10.2%
Acuson Corp. * ...................................... 3,400 78
Advanced Technology Laboratories, Inc. * ............ 1,400 60
AmeriSource Health Corp. - Cl. A* ................... 2,400 120
Amylin Pharmaceuticals, Inc. * ...................... 1,400 19
Ballard Medical Products ........................... 1,800 36
Bindley Western Industries, Inc. .................... 4,100 94
Datascope Corp. * ................................... 3,200 63
Faulding, Inc. * .................................... 4,700 58
ICN Pharmaceuticals, Inc. ........................... 1,100 32
Immunex Corp. ....................................... 4,400 160
Integrated Health Services, Inc. .................... 6,200 239
Jones Medical Industries, Inc. ...................... 1,100 52
Kinetic Concepts, Inc. .............................. 6,600 119
Marquette Medical Systems - Cl. A* .................. 9,200 202
Multicare Cos., Inc. * .............................. 2,200 60
NovaCare, Inc. * .................................... 2,500 35
Perrigo Co. * ....................................... 17,800 223
Safeskin Corp. * .................................... 3,300 97
Sierra Health Services, Inc. * ...................... 2,200 69
Sofamor Danek Group, Inc. * ......................... 1,000 46
TECNOL Medical Products, Inc. * ..................... 6,900 154
Trigon Healthcare, Inc. * ........................... 2,200 53
-------
2,069
</TABLE>
93
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Household and Personal-2.0%
Furniture Brands International, Inc. * ............. 6,000 $ 116
Interface, Inc. ................................... 3,300 73
Kellwood Co. ...................................... 2,800 78
O'Sullivan Industries Holdings, Inc. * ............. 8,500 141
-------
408
Insurance-8.0%
CMAC Investment Corp. ............................. 3,100 148
Delphi Financial Group, Inc. - Cl. A* .............. 5,130 198
Executive Risk, Inc. .............................. 400 21
Frontier Insurance Group, Inc. .................... 2,600 168
Guarantee Life Cos., Inc. ......................... 2,600 65
Horace Mann Educators Corp. ....................... 2,800 137
Life Re Corp. ..................................... 1,100 51
NAC Re Corp. ...................................... 5,500 265
Orion Capital Corp. ............................... 2,200 162
Presidential Life Corp. ........................... 7,000 136
Reliance Group Holdings, Inc. ..................... 8,700 103
Vesta Insurance Group, Inc. ....................... 1,100 48
W.R. Berkley Corp. ................................ 2,200 130
-------
1,632
Leisure and Recreation Products and Services-0.9%
Carmike Cinemas, Inc. - Cl. A* ..................... 5,400 177
Lodging and Restaurants-2.3%
Applebee's International, Inc. .................... 2,700 72
Brinker International, Inc. * ...................... 2,600 37
Bristol Hotel Co. * ................................ 2,500 96
CKE Restaurants, Inc. ............................. 2,350 74
Luby's Cafeterias, Inc. ........................... 3,800 76
Prime Hospitality Corp. * .......................... 2,700 53
Showbiz Pizza Time, Inc. * ......................... 2,100 55
-------
463
Machinery and Equipment-3.9%
A.O. Smith Corp. .................................. 1,000 36
Baldor Electric Co. ............................... 2,000 59
Chart Industries, Inc. ............................ 2,400 66
Coltec Industries, Inc. * .......................... 4,100 80
Fluke Corp. ....................................... 1,100 65
Manitowoc Co., Inc. ............................... 2,000 94
Mascotech, Inc. ................................... 11,200 234
Robbins & Myers, Inc. ............................. 2,300 75
Teleflex, Inc. .................................... 2,600 81
-------
790
-------
Media-2.2%
Cablevision Systems Corp. - Cl. A* ................. 5,300 285
International Family Entertainment, Inc. - Cl. B ... 3,100 107
McClatchy Newspapers, Inc. - Cl. A ................. 1,500 44
Metromedia International Group, Inc. * ............. 1,200 15
-------
451
Metals and Mining-1.3%
National Steel Corp. - Cl. B* ...................... 4,400 74
Precision Castparts Corp. ......................... 1,500 89
Zeigler Coal Holding Co. .......................... 4,200 98
-------
261
</TABLE>
94
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Miscellaneous-3.1%
ACX Technologies, Inc. * ........................... 5,100 $ 115
AptarGroup, Inc. .................................. 1,100 50
Catalina Marketing Corp. * ......................... 1,500 72
DeVry, Inc. * ...................................... 2,900 78
Foamex International, Inc. * ....................... 6,200 81
Paxar Corp. * ...................................... 6,100 115
Sotheby's Holdings, Inc. .......................... 7,500 127
------
638
Oils and Natural Gas Equipment and Services-1.7%
EVI, Inc. * ........................................ 2,200 92
Newpark Resources, Inc. * .......................... 2,300 78
ONEOK, Inc. ....................................... 1,900 61
Varco International, Inc. * ........................ 3,400 110
------
341
------
Oils and Natural Gas Exploration and Production-3.4%
Berry Petroleum Co. - Cl. A ........................ 2,900 55
Cabot Oil & Gas Corp. - Cl. A ...................... 4,800 85
Helmerich & Payne, Inc. ........................... 2,400 138
HS Resources, Inc. * ............................... 4,500 64
KN Energy, Inc. ................................... 1,400 59
Newfield Exploration Co. .......................... 2,900 58
Parker & Parsley Petroleum Co. .................... 2,900 103
Snyder Oil Corp. .................................. 4,100 75
Tesoro Petroleum Corp. * ........................... 500 7
Vintage Petroleum, Inc. ........................... 1,800 55
------
699
Pollution Control Equipment and Services-1.1%
Culligan Water Technologies, Inc. * ................ 2,000 $ 90
Ionics, Inc. * ..................................... 1,600 73
U.S. Filter Corp. * ................................ 1,900 52
------
215
Publications-0.1%
Pulitzer Publishing Co. ........................... 200 11
Real Estate Development-1.6%
Centex Corp. ...................................... 5,900 240
Highwoods Properties, Inc. ........................ 800 26
U.S. Home Corp. * .................................. 2,300 61
------
327
Real Estate Investment Trust-3.5%
CBL & Associates Properties, Inc. ................. 4,800 115
Equity Residential Properties Trust ............... 2,762 131
JP Realty, Inc. ................................... 3,200 87
Koger Equity, Inc. * ............................... 3,100 57
Merry Land & Investment Co., Inc. ................. 2,800 61
MGI Properties, Inc. .............................. 1,700 38
OMEGA Healthcare Investors, Inc. .................. 900 29
Public Storage, Inc. .............................. 3,500 102
RFS Hotel Investors, Inc. ......................... 4,700 85
------
705
Real Estate Operations-0.9%
Pulte Corp. ....................................... 5,400 187
</TABLE>
95
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- -------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Retail-5.1%
Ethan Allen Interiors, Inc. ....................... 1,800 $ 103
Fred Meyer, Inc. * ................................. 3,100 160
Lands' End, Inc. * ................................. 8,000 237
Pier 1 Imports, Inc. .............................. 6,500 172
Ross Stores, Inc. ................................. 3,800 124
Shopko Stores, Inc. ............................... 4,100 105
Tech Data Corp. * .................................. 2,100 66
U.S. Office Products Co. * ......................... 1,600 49
United Stationers, Inc. * .......................... 500 13
-------
1,029
Soap, Cosmetics and Personal Care-0.4%
Carter Wallace, Inc. .............................. 4,500 80
Telecommunications-1.8%
C-TEC Corp. * ...................................... 1,800 63
Centennial Cellular Corp. - Cl. A* ................. 5,100 81
CommNet Cellular, Inc. * ........................... 2,300 80
Davox Corp. * ...................................... 2,500 89
Dynatech Corp. * ................................... 1,200 43
Octel Communications Corp. * ....................... 600 14
-------
370
Textiles-1.9%
Burlington Industries, Inc. * ...................... 7,300 88
Quaker Fabric Corp. * .............................. 700 12
Springs Industries, Inc. .......................... 1,700 90
St. John Knits, Inc. .............................. 1,900 103
WestPoint Stevens, Inc. * .......................... 2,500 98
-------
391
Transportation-2.4%
Airbourne Freight Corp. ........................... 3,300 138
America West Holdings Corp. - Cl. B* ............... 3,800 55
Expeditors International of Washington, Inc. ...... 3,900 111
Heartland Express, Inc. * .......................... 4,350 102
Yellow Corp. * ..................................... 3,800 85
-------
491
Utilities - Electric-1.1%
Central Louisiana Electric ........................ 1,400 39
Central Maine Power Co. ........................... 3,800 47
Cilcorp, Inc. ..................................... 1,200 49
Commonwealth Energy System Cos. ................... 2,200 53
IES Industries, Inc. .............................. 1,500 44
-------
232
Utilities - Gas-0.3%
NUI Corp. ......................................... 2,700 61
Water and Water Treatment Services-0.2%
E'Town Corp. ...................................... 1,400 43
-------
TOTAL COMMON STOCK- 93.7% 19,051
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-10.2%
Investment in joint trading account (Note B)
5.81% due 7/01/97.................................. $2,075 2,076
------- -------
TOTAL INVESTMENTS- 103.9% 21,127
Payables, less cash and receivables- (3.9)% (789)
------- -------
NET ASSETS- 100.0% $20,338
======= =======
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
96
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Argentina-0.8%
Banco de Galicia y Buenos Aires SA de CV (BANK) ......... 511 $ 13
Banco Frances del Rio de la Plata SA (BANK) ............. 737 24
Perez Companc SA (OILS) ................................. 5,364 43
Sociedad Comercial del Plata - ADR* (CHEM) .............. 100 4
Telecom Argentina Stet-France Telecom SA - Cl. B (UTIT) . 610 3
Telecom Argentina Stet-France Telecom SA - ADR (UTIT) ... 70 4
Telefonica de Argentina SA - ADR (UTIT) ................. 1,610 56
Transportadora de Gas del Sur SA (OILS) ................. 240 3
YPF Sociedad Anonima - ADR - ADR (OILS) ................. 1,910 59
------
209
Australia-1.7%
Australia & New Zealand Banking Group, Ltd. (BANK) ...... 2,000 15
Australian Gas Light Co., Ltd. (OILS) ................... 5,000 29
Boral, Ltd. (BUIL) ...................................... 3,000 9
Broken Hill Proprietary Co., Ltd. (DIVO) ................ 7,500 110
Commonwealth Instalment Receipt Trustee, Ltd. (BANK) .... 2,700 24
Foster's Brewing Group, Ltd. (FOOD) ..................... 10,000 19
John Fairfax Holdings Ltd. (PUBL) ....................... 3,000 7
Lend Lease Corp. (FINL) ................................. 1,000 21
National Australia Bank, Ltd. (BANK) .................... 2,037 29
National Mutual Holdings, Ltd. * (INSU) ................. 6,000 10
News Corp., Ltd. (MEDI) ................................. 6,007 29
Publishing & Broadcasting, Ltd. (MEDI) .................. 4,000 23
St. George Bank, Ltd. (BANK) ............................ 3,000 20
Sydney Harbour Casino Holdings, Ltd. * (LEIS) ........... 9,000 14
TABCORP Holdings, Ltd. (LEIS) ........................... 4,000 22
Westpac Banking Corp., Ltd. (BANK) ...................... 3,000 18
WMC, Ltd. (META) ........................................ 3,000 19
Woodside Petroleum, Ltd. (OILS) ......................... 3,000 26
------
444
Austria-0.0%
EVN Energie-Versorgung Niederoesterreich AG (UTIE) ...... 20 3
Flughafen Wien AG (TRAN) ................................ 70 3
------
6
Belgium-1.2%
Credit Communal Holding/Dexia (BANK) .................... 189 20
Generale de Banque SA (BANK) ............................ 170 65
Generale de Banque SA (BANK) ............................ 10 0
Kredietbank NV (BANK) ................................... 460 185
UCB SA (HEAL) ........................................... 19 60
------
330
Brazil-3.7%
Centrais Electricas Brasileiras SA - Eletrobras - ADR
(UTIE) ................................................ 3,252 93
Companhia Siderurgica National - ADR (META) ............. 1,000 33
Compania Brasileira de Distribuicao Grupo Pao de Acucar
(RETL) ................................................ 1,057 24
Compania Energetica de Minas (UTIE) ..................... 2,551 135
Telecomunicacoes Brasileiras S/A-Telebras - ADR (TELE) .. 4,144 630
Usinas Siderurgicas de Minas Gerais S/A - ADR* (META) ... 5,449 61
------
976
Canada-0.2%
Alcan Aluminum, Ltd. (META) ............................. 1,540 53
Royal Bank of Canada (BANK) ............................. 290 13
------
66
------
</TABLE>
97
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Chile-0.4%
Chilectra SA - ADR (UTIE) ........................... 645 $ 19
Chilgener SA - ADR (UTIE) ........................... 240 7
Compania Cervecerias Unidas SA (FOOD) ............... 200 4
Compania de Telecomunicaciones de Chile SA (UTIT) ... 586 19
Empresa Nacional de Electricidad SA - ADR (UTIE) .... 878 20
Enersis SA - ADR (UTIE) ............................. 503 18
Santa Isabel SA - ADR (RETL) ........................ 333 11
-------
98
China-0.2%
Huaneng Power International, Inc. - ADR* (UTIE) ..... 2,000 51
Denmark-0.2%
Den Danske Bank (BANK) .............................. 230 22
Tele Danmark A/S (TELE) ............................. 80 4
Unidanmark A/S - Cl. A (FINL) ....................... 260 15
-------
41
Finland-0.3%
Oy Nokia AB (TELE) .................................. 920 69
France-8.2%
Accor SA (LODG) ..................................... 120 18
Adecco SA * (BUSI) .................................. 205 79
Alcatel Alsthom (TELE) .............................. 944 118
Assurances Generales de France (INSU) ............... 430 14
AXA SA (INSU) ....................................... 834 52
Canal Plus (MEDI) ................................... 140 27
Carrefour (RETL) .................................... 283 206
Chargeurs International SA (DIVO) ................... 90 5
Compagnie de St. Gobain (BUIL) ...................... 460 67
Compagnie Generale des Eaux (DIVO) .................. 2,460 315
Credit Local de France (FINL) ....................... 506 49
Elf Aquitaine (OILS) ................................ 940 101
GTM Entrepose SA (ENGI) ............................. 200 10
Guilbert SA (EDPE) .................................. 160 23
Havas SA (MEDI) ..................................... 160 12
L 'Oreal (SOAP) ..................................... 65 27
Lapeyre SA (BUIL) ................................... 380 25
Legrand SA (ETRN) ................................... 144 25
Moet Hennessy-Louis Vuitton (MISC) .................. 640 172
Pathe SA * (MEDI) ................................... 110 22
Pinault-Printemps-Redoute SA (RETL) ................. 374 180
Primagaz Cie (OILE) ................................. 240 21
Rexel SA (ETRN) ..................................... 52 16
Sanofi SA (HEAL) .................................... 812 80
Schneider SA (ETRN) ................................. 2,111 112
Societe Generale de Paris (BANK) .................... 298 33
Societe Television Francaise 1 (MEDI) ............... 690 62
Sodexho SA (MISC) ................................... 188 96
Total SA - Cl. B (OILS) ............................. 2,101 212
-------
2,179
Germany-4.3%
Allianz AG (INSU) ................................... 500 105
Bayer AG (CHEM) ..................................... 3,006 116
Bayerische Hypotheken-und Wechsel-Bank AG (BANK) .... 1,753 52
Bilfinger & Berger Bau AG (CONS) .................... 500 20
Buderus AG (MACH) ................................... 30 17
</TABLE>
98
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Germany-Continued
Commerzbank AG (BANK) ............................... 630 $ 18
Deutsche Bank AG (BANK) ............................. 1,518 89
Deutsche Telekom * (UTIT) ........................... 2,616 63
Fielmann AG - Pref. (RETL) .......................... 130 4
Gehe AG (HEAL) ...................................... 2,518 172
Hoechst AG (CHEM) ................................... 490 21
Hornbach Holding AG - Pref. (RETL) .................. 200 17
Hornback Baumarkt Aktiengesellschaft (RETL) ......... 80 3
Krones AG (MACH) .................................... 40 16
Mannesmann AG (DIVO) ................................ 70 31
Praktiker Bau-und Heimwerkemaerkte AG * (RETL) ...... 180 3
Rhoen-Klinikum AG (HEAL) ............................ 480 63
SAP AG (SOFT) ....................................... 300 60
SAP AG (SOFT) ....................................... 120 25
Schering AG (HEAL) .................................. 300 32
Siemens AG (DIVO) ................................... 426 25
VEBA AG (UTIE) ...................................... 2,825 159
Volkswagen AG (AUTO) ................................ 40 31
-------
1,142
Hong Kong-3.4%
Cathay Pacific Airways (TRAN) ....................... 19,000 39
China Light & Power Co., Ltd. (UTIE) ................ 4,000 23
Dao Heng Bank Group, Ltd. (BANK) .................... 9,000 49
First Pacific Co., Ltd. (DIVO) ...................... 55,000 70
Guoco Group, Ltd. (FINL) ............................ 11,000 58
Hutchison Whampoa, Ltd. (DIVO) ...................... 22,000 190
New World Development Co., Ltd. (REAL) .............. 30,297 181
Shanghai Petrochemical Co., Ltd. (CHEM) ............. 78,000 19
Swire Pacific, Ltd. - Cl. A (DIVO) .................. 13,000 117
Wharf (Holdings), Ltd. (REAL) ....................... 32,000 139
Yizheng Chemical Fibre Co., Ltd. - Cl. A (TEXT) ..... 56,000 10
-------
895
Italy-2.3%
Banca Commerciale Italiana (BANK) ................... 4,000 8
Banca Fideuram (BANK) ............................... 7,770 25
Credito Italiano SpA (BANK) ......................... 31,393 57
Ente Nazionale Idrocarburi SpA (OILS) ............... 18,095 102
Industrie Natuzzi SpA - ADR (RETL) .................. 1,000 26
Istituto Mobiliare Italiano SpA (FINL) .............. 2,960 27
Italgas SpA (UTIG) .................................. 4,000 13
La Rinascente SpA (RETL) ............................ 1,000 6
Mediolanum SpA * (INSU) ............................. 2,331 26
Seat SpA * (DIVO) ................................... 5,000 1
Seat SpA * (DIVO) ................................... 12,000 4
Stet-Societa Finanziaria Telefonica SpA (TELE) ...... 19,000 111
Telecom Italia Mobile SpA (UTIT) .................... 5,000 9
Telecom Italia Mobile SpA (UTIT) .................... 44,000 142
Telecom Italia SpA (UTIT) ........................... 17,000 51
-------
608
Japan-22.6%
Advantest (ETRN) .................................... 400 31
Alps Electric Co. (ETRN) ............................ 2,000 28
Amada Co., Ltd (MACH) ............................... 5,000 44
Canon, Inc. (EDPE) .................................. 11,000 299
Citizen Watch Co., Ltd. (HOUS) ...................... 3,000 23
</TABLE>
99
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Japan-Continued
Daifuku Co., Ltd. (MACH) ............................ 1,000 $ 13
Daiichi Pharm Co., Ltd. (HEAL) ...................... 7,000 123
Dainippon Screen Manufacturing Co., Ltd. (ETRN) ..... 4,000 38
Daiwa House Industry Co., Ltd. (CONS) ............... 9,000 110
DDI Corp. (UTIT) .................................... 13 96
East Japan Railway Co. (TRAN) ....................... 21 108
Fanuc (MACH) ........................................ 1,700 65
Hitachi Zosen Corp. (META) .......................... 7,000 28
Hitachi, Ltd. (ETRN) ................................ 11,000 123
Honda Motor Co. (AUTO) .............................. 1,000 30
Inax Corp. (BUIL) ................................... 2,000 15
Ishihara Sangyo Kaisha * (CHEM) ..................... 2,000 6
Ito-Yokado Co., Ltd. (RETL) ......................... 3,000 174
KAO Corp. (SOAP) .................................... 5,000 69
Kokuyo Co. (EDPE) ................................... 3,000 81
Komatsu, Ltd. (MACH) ................................ 6,000 49
Komori Corp. (MACH) ................................. 2,000 47
Kumagai Gumi Co., Ltd. (CONS) ....................... 4,000 7
Kuraray Co., Ltd. (TEXT) ............................ 5,000 50
Kyocera Corp. (ETRN) ................................ 3,000 238
Makita Corp. (MACH) ................................. 4,000 59
Marui Co., Ltd. (RETL) .............................. 7,000 130
Matsushita Electric Industrial Co. * (AUDI) ......... 11,000 222
Mitsubishi Corp. (DIVO) ............................. 6,000 75
Mitsubishi Heavy Industries, Ltd. (AERO) ............ 31,000 238
Mitsubishi Paper Mills (PAPR) ....................... 3,000 12
Mitsui Fudosan (REAL) ............................... 16,000 221
Mitsui Petrochemical Co. (CHEM) ..................... 2,000 10
Murata Manufacturing Co., Ltd. (ETRN) ............... 3,000 119
National House Industrial (BUIL) .................... 1,000 13
NEC Corp. (SOFT) .................................... 20,000 279
Nippon Hodo (CONS) .................................. 1,000 9
Nippon Steel Co. (META) ............................. 42,000 134
Nippon Telegraph & Telephone Corp. (UTIT) ........... 9 86
Nippondenso Co., Ltd. (ETRN) ........................ 10,000 239
Nomura Securities Co., Ltd. (FINL) .................. 10,000 138
Pioneer Electronic Corp. (AUDI) ..................... 4,000 97
Sangetsu Co., Ltd. (HOUS) ........................... 1,000 21
Sankyo Co., Ltd. (HEAL) ............................. 7,000 235
Sega Enterprises (LEIS) ............................. 500 17
Sekisui Chemical Co. (CHEM) ......................... 10,000 101
Sekisui House, Ltd. (READ) .......................... 4,000 40
Seven-Eleven Japan (RETL) ........................... 1,000 76
Sharp Corp. (ETRN) .................................. 10,000 138
Shin-Etsu Chemical Co. (CHEM) ....................... 6,000 159
Shiseido Co., Ltd. (SOAP) ........................... 2,000 33
Sony Corp. (AUDI) ................................... 2,600 227
Sumitomo Corp. (DIVO) ............................... 13,000 124
Sumitomo Electric Industries (ETRN) ................. 15,000 251
Sumitomo Forestry Co. (PAPR) ........................ 3,000 33
TDK Corp. (ETRN) .................................... 3,000 220
Teijin, Ltd. (TEXT) ................................. 13,000 61
Tokio Marine & Fire Insurance Co. (INSU) ............ 3,000 39
Tokyo Electron, Ltd. (ETRN) ......................... 1,100 53
Tokyo Steel Manufacturing (META) .................... 2,500 28
Toppan Printing Co. (PUBL) .......................... 6,000 94
</TABLE>
100
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Japan-Continued
UNY Co., Ltd. (RETL) ................................ 2,000 $ 39
Yurtec Corp. (ENGI) ................................. 1,050 12
-------
5,977
Malaysia-1.7%
Affin Holdings Berhad (FINL) ........................ 11,000 26
Berjaya Sports Toto Berhad (DIVO) ................... 14,000 66
Commerce Asset Holding Bhd (BANK) ................... 10,000 26
Multi-Purpose Holdings Berhad * (DIVO) .............. 15,000 21
Renong Berhad (DIVO) ................................ 48,000 63
Resorts World Berhad (LEIS) ......................... 6,000 18
Tanjong plc (LEIS) .................................. 13,000 45
Technology Resources Industries Berhad * (TELE) ..... 7,000 12
Time Engineering Berhad (DIVO) ...................... 9,000 14
United Engineers (Malaysia), Ltd. (DIVO) ............ 21,000 151
-------
442
Mexico-1.4%
Cemex SA de CV - ADR* (BUIL) ........................ 6,030 52
Cemex SA de CV (BUIL) ............................... 2,000 10
Cifra SA de CV - ADR* (RETL) ........................ 21,176 38
Fomento Economico Mexicano SA de CV (FOOD) .......... 3,000 18
Gruma SA * (FOOD) ................................... 4,965 23
Gruma SA - ADR* (FOOD) .............................. 973 19
Grupo Financiero Banamex Accival SA de CV * (BANK) .. 6,300 16
Grupo Industrial Maseca SA de CV (FOOD) ............. 12,630 14
Grupo Modelo SA de CV (FOOD) ........................ 2,000 14
Grupo Televisa SA - GDR* (MEDI) ..................... 207 6
Kimberly-Clark de Mexico SA de CV (PAPR) ............ 7,170 29
Telefonos de Mexico SA - ADR (UTIT) ................. 2,560 122
-------
361
Netherlands-10.3%
ABN Amro Holding NV (BANK) .......................... 7,356 137
Akzo Nobel NV (CHEM) ................................ 130 18
Baan Co., NV * (SOFT) ............................... 415 28
Baan Co., NV * (SOFT) ............................... 360 25
CSM NV (FOOD) ....................................... 2,088 105
Elsevier NV (PUBL) .................................. 18,750 313
Fortis Amev NV (FINL) ............................... 2,550 114
Gucci Group NV (TEXT) ............................... 537 35
Hagemeyer NV (DIVO) ................................. 368 19
ING Groep NV (BANK) ................................. 6,580 303
Koninklijke Ahold NV (RETL) ......................... 1,690 143
Koninklijke PTT Nederland NV (TELE) ................. 550 22
Nutricia Vereenigde Bedrijven NV (FOOD) ............. 241 38
Otra NV (DIVO) ...................................... 240 4
PolyGram NV (LEIS) .................................. 3,270 172
Royal Dutch Petroleum Co. (OILS) .................... 11,920 621
Unilever NV (DIVO) .................................. 950 200
Wolters Kluwer NV (PUBL) ............................ 3,583 436
-------
2,733
New Zealand-0.3%
Air New Zealand, Ltd. - Cl. B (TRAN) ................ 6,000 18
Carter Holt Harvey, Ltd. (PAPR) ..................... 3,500 9
Fletcher Challenge Building (BUIL) .................. 5,600 17
Fletcher Challenge Energy (OILS) .................... 1,000 3
</TABLE>
101
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
New Zealand-Continued
Fletcher Challenge Forests (PAPR) ................... 7,000 $ 10
Fletcher Challenge Forests (PAPR) ................... 160 0
Fletcher Challenge Paper (PAPR) ..................... 4,000 10
Telecom Corp. of New Zealand (UTIT) ................. 4,000 20
Tranz Rail Holdings Ltd. (TRAN) ..................... 1,000 6
-------
93
Norway-1.7%
Bergesen dy AS (TRAN) ............................... 250 6
Norsk Hydro AS (CHEM) ............................... 4,260 232
Orkla AS (DIVO) ..................................... 2,610 193
Saga Petroleum AS - Cl. B (OILS) .................... 400 7
-------
438
Panama-0.3%
Banco Latinoamericano de Exportaciones SA - Cl. E
(BANK) ............................................ 176 8
Panamerican Beverages, Inc. - Cl. A (FOOD) .......... 2,160 71
-------
79
Peru-0.0%
Telefonica del Peru SA - ADR (TELE) ................. 535 14
Philippines-0.2%
Philippine Long Distance Telephone Co. (UTIT) ....... 800 26
Philippine National Bank * (BANK) ................... 4,125 28
-------
54
Portugal-0.4%
Estabelecimentos Jeronimo Martins & Filho, Sociedade
Gestora de Participacoes Sociais SA (RETL) ........ 1,680 117
Singapore-1.9%
City Developments, Ltd. (READ) ...................... 3,000 29
DBS Land, Ltd. (READ) ............................... 7,000 22
Development Bank of Singapore, Ltd. (BANK) .......... 2,000 25
Fraser & Neave, Ltd. (FOOD) ......................... 3,000 21
Hong Kong Land Holdings, Ltd. (READ) ................ 36,000 96
Keppel Corp., Ltd. - Cl. A* (DIVO) .................. 2,000 9
Keppel Corp., Ltd. (DIVO) ........................... 500 2
Oversea-Chinese Bank Corp., Ltd. (BANK) ............. 1,200 12
Overseas Union Bank, Ltd. (BANK) .................... 8,400 52
Singapore Land, Ltd. (REAL) ......................... 4,000 18
Singapore Press Holdings, Ltd. (PUBL) ............... 5,000 101
United Industrial Corp. (DIVO) ...................... 9,000 7
United Overseas Bank, Ltd. (BANK) ................... 10,000 103
Wing Tai Holdings, Ltd. (DIVO) ...................... 6,000 17
-------
514
Spain-2.2%
Banco Bilbao Vizcaya, SA (BANK) ..................... 280 23
Banco Popular Espanol SA (BANK) ..................... 280 69
Banco Santander SA (BANK) ........................... 3,570 110
Centros Comerciales Pryca SA (RETL) ................. 610 13
Corporacion Bancaria de Espana SA (BANK) ............ 480 27
Empresa Nacional de Electricidad SA * (UTIE) ........ 792 66
Gas Natural SDG (UTIG) .............................. 220 48
Iberdrola SA (UTIE) ................................. 5,060 64
Repsol SA (OILS) .................................... 1,297 55
Sociedade General de Aguas de Barcelona SA * (WATR) . 3 0
Telefonica de Espana (UTIT) ......................... 3,473 100
-------
575
</TABLE>
102
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Sweden-2.4%
ABB AB - Cl. A (MACH) ............................... 4,130 $ 58
Astra AB - Cl. B (HEAL) ............................. 12,826 226
Atlas Corp. (META) .................................. 2,240 58
Electrolux AB - Ser. B (HOUS) ....................... 1,460 105
Esselte AB - Cl. B (EDPE) ........................... 220 5
Granges AB * (MISC) ................................. 495 7
Hennes & Mauritz AB (RETL) .......................... 1,900 67
Nordbanken AB (BANK) ............................... 850 29
Sandvik AB - Cl. A (MACH) ........................... 1,410 40
Sandvik AB - Cl. B (MACH) ........................... 1,410 40
Scribona AB (EDPE) .................................. 290 3
-------
638
Switzerland-6.0%
ABB AG (MACH) ....................................... 160 242
Adecco SA (BUSI) .................................... 170 65
Ciba Specialty Chemicals AG * (CHEM) ................ 186 17
CS Holding AG (BANK) ................................ 250 32
Nestle SA (FOOD) .................................... 200 264
Novartis AG * (HEAL) ................................ 306 490
Roche Holdings AG (HEAL) ............................ 41 371
Schweizerischer Bankverein (BANK) ................... 370 99
-------
1,580
Thailand-0.1%
Advanced Info Service plc (TELE) .................... 1,300 9
Bangkok Bank Co., Ltd. (BANK) ....................... 1,400 10
Siam Cement Public Co., Ltd. (BUIL) ................. 600 10
-------
29
United Kingdom-15.9%
Abbey National First Capital BV (BANK) .............. 8,000 109
Argos plc (RETL) .................................... 10,733 97
Asda Group plc (RETL) ............................... 23,000 47
BG plc (UTIG) ....................................... 7,000 26
British Petroleum Co. plc - ADR* (OILS) ............. 8,000 100
Cable & Wireless plc (TELE) ......................... 19,000 174
Cadbury Schweppes plc (FOOD) ........................ 13,000 116
Caradon plc (BUIL) .................................. 13,500 45
Centrica plc * (UTIG) ............................... 7,000 9
Coats Viyella plc (TEXT) ............................ 4,000 8
Compass Group plc (LODG) ............................ 7,000 78
David S. Smith Holdings plc (PAPR) .................. 8,000 25
Electrocomponents plc (ETRN) ........................ 7,000 52
GKN plc (AUTO) ...................................... 1,000 17
Glaxo Wellcome plc - ADR (HEAL) ..................... 13,000 269
Grand Metropolitan plc (FOOD) ....................... 22,000 212
Guinness plc (FOOD) ................................. 19,000 186
Heywood Williams Group plc (BUIL) ................... 2,000 7
Hillsdown Holdings plc (FOOD) ....................... 4,000 11
John Laing plc (CONS) ............................... 3,000 19
Kingfisher plc (RETL) ............................... 19,000 216
Ladbroke Group plc (LEIS) ........................... 8,000 31
National Westminster Bank plc (BANK) ................ 33,000 444
Rank Group plc (LEIS) ............................... 9,000 57
Reed International plc (PUBL) ....................... 33,000 319
Rolls-Royce plc (AERO) .............................. 4,000 15
RTZ Corp. plc (META) ................................ 8,000 139
Safeway plc (RETL) .................................. 16,000 93
</TABLE>
103
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
United Kingdom-Continued
Shell Transport & Trading Co. plc (OILS) ........... 45,000 $ 307
Smithkline Beecham plc (HEAL) ...................... 29,400 542
T & N plc (AUTO) ................................... 10,000 24
Tesco plc (RETL) ................................... 14,000 86
Tomkins plc (DIVO) ................................. 38,000 165
United News & Media plc (PUBL) ..................... 14,000 162
-------
4,207
United States-0.7%
Brazil Fund, Inc. (FUND) ........................... 860 26
Chile Fund, Inc. (FUND) ............................ 358 9
Credicorp, Ltd. (FINL) ............................. 360 8
Korea Electric Power Corp. (UTIE) .................. 2,800 52
Korea Fund, Inc. (FUND) ............................ 5,213 77
Lojas Americanas SA - ADR (RETL) .................... 925 13
-------
185
Venezuela-0.1%
Compania Anonima Nacional Telefonos de Venezuela *
(UTIT) ............................................ 340 15
-------
TOTAL COMMON STOCK- 95.1% 25,165
PUBLICLY-TRADED BONDS-0.0%
Multi-Purpose Holdings Berhad (DIVO)
3.00% due 1/13/02.................................. $ 17 6
WARRANTS - 0.1%
ING Groep NV
expires 3/15/01 (Cost $10) ........................ 2 21
RIGHTS
Commerce Asset Holdings
expires 7/07/97.................................... $ 2 $ 0
expires 7/07/97.................................... 1 0
-------
TOTAL RIGHTS- 0.0% 0
SHORT-TERM INVESTMENTS-7.3%
Investment in joint trading account (Note B)
5.81% due 7/01/97.................................. 1,921 1,921
------- -------
TOTAL INVESTMENTS- 102.5% 27,113
Payable, less cash and receivables- (2.5)% (659)
------- -------
NET ASSETS- 100.0% $26,454
======= =======
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt.
See notes to financial statements.
104
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Health Products and Services....... HEAL $ 2,663 10.6%
Banks and Finance.................. BANK 2,441 9.7%
Diversified Operations............. DIVO 2,004 8.0%
Retail............................. RETL 1,829 7.3%
Electronic Products................ ETRN 1,683 6.7%
Oils and Natural Gas Exploration
and Production..................... OILS 1,668 6.6%
Publications....................... PUBL 1,432 5.7%
Telecommunications................. TELE 1,163 4.6%
Food, Beverage and Tobacco......... FOOD 1,135 4.5%
Utilities - Telecommunications..... UTIT 812 3.2%
Utilities - Electric............... UTIE 710 2.8%
Chemicals.......................... CHEM 703 2.8%
Machinery and Equipment............ MACH 690 2.7%
Real Estate Operations............. REAL 559 2.2%
Metals and Mining.................. META 553 2.2%
Audio/Video Home Products.......... AUDI 546 2.2%
Financial Services................. FINL 456 1.8%
Computer Software and Services..... SOFT 417 1.7%
Computers & Office Equipment....... EDPE 411 1.6%
Leisure and Recreation Products
and Services....................... LEIS 376 1.5%
Miscellaneous...................... MISC 275 1.1%
Building Products.................. BUIL 270 1.1%
Aerospace.......................... AERO 253 1.0%
Insurance.......................... INSU 246 1.0%
Real Estate Development............ READ 187 0.8%
Media.............................. MEDI 181 0.7%
Transportation..................... TRAN 180 0.7%
Construction....................... CONS 165 0.7%
Textiles........................... TEXT 164 0.7%
Household and Personal............. HOUS 149 0.6%
Business Services.................. BUSI 144 0.6%
Soap, Cosmetics and Personal Care.. SOAP 129 0.5%
Paper and Forest Products.......... PAPR 128 0.5%
Investment Companies............... FUND 112 0.5%
Automotive and Rubber.............. AUTO 102 0.4%
Lodging and Restaurants............ LODG 96 0.4%
Utilities - Gas.................... UTIG 96 0.4%
Engineering........................ ENGI 22 0.1%
Oils and Natural Gas Equipment and
Services........................... OILE 21 0.1%
Water and Water Treatment Services. WATR 0 0.0%
======== ========
$25,171 100.0%
======== ========
</TABLE>
105
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace-1.6%
Boeing Co. .......................................... 5,258 $ 279
General Dynamics Corp. .............................. 500 38
Lockheed Martin Corp. ............................... 1,400 145
McDonnell Douglas Corp. ............................. 1,600 110
Northrop Grumman Corp. .............................. 400 35
Raytheon Co. ........................................ 1,700 87
United Technologies Corp. ........................... 1,700 141
-------
835
Automotive and Rubber-2.0%
Chrysler Corp. ...................................... 5,000 164
Cooper Tire & Rubber Co. ............................ 800 18
Dana Corp. .......................................... 700 27
Eaton Corp. ......................................... 600 52
Echlin, Inc. ........................................ 400 14
Ford Motor Co. ...................................... 8,700 328
General Motors Corp. ................................ 5,300 295
Genuine Parts Co. ................................... 1,250 42
Goodyear Tire & Rubber Co. .......................... 1,100 70
Navistar International Corp. - Cl. B* ............... 400 7
TRW, Inc. ........................................... 900 51
-------
1,068
Banks and Finance-7.2%
Banc One Corp. ...................................... 3,100 150
Bank of New York Co., Inc. .......................... 2,800 122
BankAmerica Corp. ................................... 5,200 336
BankBoston Corp. .................................... 1,100 79
Bankers Trust New York Corp. ........................ 600 52
Barnett Banks, Inc. ................................. 1,500 79
Chase Manhattan Corp. ............................... 3,200 311
Citicorp ............................................ 3,400 410
Comerica, Inc. ...................................... 800 54
Corestates Financial Corp. .......................... 1,600 86
Fifth Third Bancorp ................................. 800 66
First Bank System, Inc. ............................. 1,000 85
First Union Corp. ................................... 2,100 194
Fleet Financial Group, Inc. ......................... 1,900 120
Great Western Financial Corp. ....................... 1,000 54
J.P. Morgan & Co., Inc. ............................. 1,400 146
KeyCorp ............................................. 1,600 89
MBNA Corp. .......................................... 2,400 88
Mellon Bank Corp. ................................... 1,900 86
National City Corp. ................................. 1,600 84
NationsBank Corp. ................................... 5,300 342
Norwest Corp. ....................................... 2,700 152
PNC Bank Corp. ...................................... 2,300 96
Republic New York Corp. ............................. 400 43
State Street Corp. .................................. 1,000 46
Suntrust Banks, Inc. ................................ 1,600 88
U.S. Bancorp ........................................ 1,100 71
Wachovia Corp. ...................................... 1,200 70
Wells Fargo & Co. ................................... 700 189
-------
3,788
Building Products-0.3%
Armstrong World Industries, Inc. .................... 300 22
Fleetwood Enterprises, Inc. ......................... 200 6
</TABLE>
106
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Building Products-Continued
Louisiana-Pacific Corp. ........................... 1,000 $ 21
Masco Corp. ....................................... 1,200 50
Owens Corning Fiberglas Corp. ..................... 400 17
Sherwin-Williams Co. .............................. 1,200 37
-------
153
Business Services-0.1%
Ceridian Corp. * ................................... 600 25
Dun & Bradstreet Corp. * ........................... 1,200 32
Moore Corp., Ltd. ................................. 600 12
-------
69
Chemicals-2.7%
Air Products & Chemicals, Inc. .................... 800 65
Dow Chemical Co. .................................. 1,700 148
E.I. du Pont de Nemours & Co. ..................... 8,300 522
Eastman Chemical Co. .............................. 600 38
Engelhard Corp. ................................... 1,100 23
FMC Corp. * ........................................ 300 24
Great Lakes Chemical Corp. ........................ 400 21
Hercules, Inc. .................................... 700 34
Monsanto Co. ...................................... 4,300 185
Morton International, Inc. ........................ 1,000 30
Nalco Chemical Co. ................................ 500 19
PPG Industries, Inc. .............................. 1,400 81
Praxair, Inc. ..................................... 1,100 62
Rohm & Haas Co. ................................... 500 45
Sigma-Aldrich Corp. ............................... 700 25
Union Carbide Corp. ............................... 1,000 47
W.R. Grace & Co. .................................. 500 28
-------
1,397
Computer Software and Services-3.7%
Adobe Systems, Inc. ............................... 500 18
Autodesk, Inc. .................................... 300 11
Automatic Data Processing, Inc. ................... 2,100 99
Cabletron Systems, Inc. * .......................... 1,100 31
Computer Associates International, Inc. ........... 2,650 148
Computer Sciences Corp. * .......................... 600 43
First Data Corp. .................................. 3,300 145
Microsoft Corp. ................................... 8,800 1,113
Novell, Inc. * ..................................... 2,500 17
Oracle Corp. * ..................................... 4,800 242
Parametric Technology Co. * ........................ 1,000 43
-------
1,910
Computers & Office Equipment-4.8%
3Com Corp. * ....................................... 2,500 113
Amdahl Corp. * ..................................... 700 6
Apple Computer, Inc. * ............................. 1,000 14
Bay Networks, Inc. * ............................... 1,400 37
Cisco Systems, Inc. * .............................. 4,900 329
Compaq Computer Corp. * ............................ 2,000 199
Data General Corp. * ............................... 200 5
Dell Computer Corp. * .............................. 1,200 141
Digital Equipment Corp. * .......................... 1,100 39
EMC Corp. * ........................................ 1,800 70
Harris Corp. ...................................... 300 25
</TABLE>
107
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Computers & Office Equipment-Continued
Hewlett-Packard Co. ............................... 7,400 $ 414
IBM Corp. ......................................... 7,300 658
John H. Harland Co. ............................... 200 5
Pitney Bowes, Inc. ................................ 1,100 76
Seagate Technology, Inc. * ......................... 1,800 63
Silicon Graphics, Inc. * ........................... 1,200 18
Sun Microsystems, Inc. * ........................... 2,700 100
Tandem Computers, Inc. * ........................... 700 14
Unisys Corp. * ..................................... 1,000 8
Xerox Corp. ....................................... 2,400 189
-------
2,523
Construction-0.0%
Foster Wheeler Corp. .............................. 400 16
Kaufman & Broad Home Corp. ........................ 300 5
-------
21
Diversified Operations-6.1%
Aeroquip-Vickers, Inc. ............................ 200 9
B.F. Goodrich Co. ................................. 500 22
Ball Corp. ........................................ 200 6
Cognizant Corp. ................................... 1,200 49
Corning, Inc. ..................................... 1,700 95
Eastern Enterprises ............................... 100 3
Fortune Brands, Inc. .............................. 1,200 45
Frontier Corp. .................................... 1,200 24
General Electric Co. .............................. 24,000 1,570
Illinois Tool Works, Inc. ......................... 1,800 90
ITT Industries, Inc. .............................. 800 21
Jefferson-Pilot Corp. ............................. 500 35
Loews Corp. ....................................... 900 90
Minnesota Mining & Manufacturing Co. .............. 3,100 316
NACCO Industries, Inc. - Cl. A ..................... 100 6
National Service Industries, Inc. ................. 300 15
Raychem Corp. ..................................... 300 22
Sara Lee Corp. .................................... 3,500 146
Tenneco, Inc. ..................................... 1,300 59
Textron, Inc. ..................................... 1,200 80
Tyco International, Ltd. .......................... 1,200 83
Unilever NV ....................................... 1,200 262
Westinghouse Electric Corp. ....................... 4,700 109
Whitman Corp. * .................................... 700 18
-------
3,175
Electronic Products-3.8%
Advanced Micro Devices, Inc. * ..................... 1,000 36
AMP, Inc. ......................................... 1,600 67
Applied Materials, Inc. * .......................... 1,300 92
Emerson Electric Co. .............................. 3,300 182
General Signal Corp. .............................. 300 13
Honeywell, Inc. ................................... 900 68
Intel Corp. ....................................... 6,000 852
LSI Logic Corp. * .................................. 1,000 32
Micron Technology, Inc. ........................... 1,500 60
Motorola, Inc. .................................... 4,400 334
National Semiconductor Corp. * ..................... 1,000 31
Rockwell International Corp. * ..................... 1,600 94
Tektronix, Inc. ................................... 200 12
</TABLE>
108
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Electronic Products-Continued
Texas Instruments, Inc. ........................... 1,400 $ 118
Thomas & Betts Corp. .............................. 400 21
-------
2,012
Engineering-0.1%
Cummins Engine Company, Inc. ...................... 300 21
Fluor Corp. ....................................... 600 33
-------
54
Financial Services-2.3%
American Express Co. .............................. 3,500 261
Beneficial Corp. .................................. 400 28
Charles Schwab Corp. .............................. 1,300 53
Countrywide Credit Industries, Inc. ............... 700 22
Equifax, Inc. ..................................... 1,100 41
First Chicago NBD Corp. ........................... 2,300 139
Golden West Financial Corp. ....................... 400 28
Green Tree Financial Corp. ........................ 1,000 36
H & R Block, Inc. ................................. 700 23
H.F. Ahmanson & Co. ............................... 700 30
Household International, Inc. ..................... 800 94
Merrill Lynch & Co., Inc. ......................... 2,400 143
MGIC Investment Corp. ............................. 800 38
Morgan Stanley, Dean Witter, Discover & Co. ....... 4,150 179
Providian Financial Corp. * ........................ 600 0
RyderSystem, Inc. ................................. 600 20
Salomon, Inc. ..................................... 800 45
-------
1,180
Food, Beverage and Tobacco-7.6%
Adolph Coors Co. - Cl. B ........................... 200 5
Albertsons, Inc. .................................. 1,800 66
Anheuser-Busch Cos., Inc. ......................... 3,600 151
Archer-Daniels-Midland Co. ........................ 3,830 90
Campbell Soup Co. ................................. 3,400 170
Coca-Cola Co. ..................................... 18,100 1,223
ConAgra, Inc. ..................................... 1,700 109
CPC International, Inc. ........................... 1,100 102
Fleming Cos., Inc. ................................ 200 4
General Mills, Inc. ............................... 1,200 78
Giant Food, Inc. .................................. 400 13
H.J. Heinz Co. .................................... 2,700 125
Hershey Foods Corp. ............................... 1,200 66
Kellogg Co. ....................................... 1,500 128
PepsiCo, Inc. ..................................... 11,200 421
Philip Morris Cos., Inc. .......................... 17,700 786
Pioneer Hi-Bred International, Inc. ............... 600 48
Quaker Oats Co. ................................... 1,000 45
Ralston-Ralston Purina Group ...................... 800 66
Seagram Co., Ltd. ................................. 2,700 109
SUPERVALU, Inc. ................................... 500 17
Sysco Corp. ....................................... 1,200 44
The Great Atlantic & Pacific Tea Company, Inc. .... 200 5
UST, Inc. ......................................... 1,300 36
Wm. Wrigley Jr. Co. ............................... 900 60
-------
3,967
Foreign-1.6%
Royal Dutch Petroleum Co. - NY Shares .............. 15,600 849
</TABLE>
109
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Government Agencies-1.0%
Federal Home Loan Mortgage Corp. .................. 5,100 $ 175
Federal National Mortgage Assoc. .................. 7,700 336
------
511
Health Products and Services-11.0%
Abbott Laboratories ............................... 5,700 380
Allergan, Inc. .................................... 400 13
Alza Corp. * ....................................... 600 17
American Home Products Corp. * ..................... 4,700 360
Amgen, Inc. * ...................................... 1,900 110
Bausch & Lomb, Inc. ............................... 400 19
Baxter International, Inc. ........................ 2,000 105
Becton, Dickinson & Co. ........................... 900 46
Beverly Enterprises, Inc. * ........................ 600 10
Biomet, Inc. ...................................... 800 15
Boston Scientific Corp. * .......................... 1,400 86
Bristol-Myers Squibb Co. .......................... 7,300 591
C.R. Bard, Inc. ................................... 400 15
Cardinal Health, Inc. ............................. 800 46
Columbia/HCA Healthcare Corp. ..................... 4,850 191
CVS Corp. ......................................... 1,200 62
Eli Lilly & Co. ................................... 4,100 448
Fresenius Medical Care AG - Pref.* ................. 300 0
Guidant Corp. ..................................... 600 51
HEALTHSOUTH Corp. * ................................ 2,400 60
Humana, Inc. * ..................................... 1,200 28
Johnson & Johnson ................................. 9,700 624
Mallinckrodt, Inc. ................................ 500 19
Manor Care, Inc. .................................. 500 16
Medtronic, Inc. ................................... 1,800 146
Merck & Co., Inc. ................................. 8,800 912
Pfizer, Inc. ...................................... 4,700 562
Pharmacia & Upjohn, Inc. .......................... 3,700 129
Schering-Plough Corp. ............................. 5,300 254
Shared Medical Systems Corp. ...................... 200 11
St. Jude Medical, Inc. * ........................... 700 27
Tenet Healthcare Corp. ............................ 2,100 62
U.S. Surgical Corp. ............................... 500 19
United Healthcare Corp. ........................... 1,400 73
Warner-Lambert Co. ................................ 2,000 249
------
5,756
Household and Personal-2.9%
Avon Products, Inc. ............................... 1,000 71
Clorox Co. ........................................ 400 53
Colgate-Palmolive Co. ............................. 2,200 144
Gillette Co. ...................................... 4,100 388
Newell Co. ........................................ 1,200 48
Procter & Gamble Co. .............................. 5,000 706
Reebok International, Ltd. ........................ 500 23
Rubbermaid, Inc. .................................. 1,000 30
Stride Rite Corp. ................................. 300 4
Tupperware Corp. .................................. 400 15
Whirlpool Corp. ................................... 500 27
------
1,509
Insurance-4.0%
Aegon NV .......................................... 1 0
</TABLE>
110
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Insurance-Continued
Aetna, Inc. ....................................... 1,100 $ 113
Allstate Corp. .................................... 3,200 234
American General Corp. ............................ 1,721 82
American International Group, Inc. ................ 3,400 508
Aon Corp. ......................................... 1,200 62
Chubb Corp. ....................................... 1,300 87
Cigna Corp. ....................................... 500 89
Conseco, Inc. ..................................... 1,300 48
General Re Corp. .................................. 600 109
Hartford Financial Services Group, Inc. ........... 900 74
Lincoln National Corp. ............................ 800 52
Marsh & McLennan Cos., Inc. ....................... 1,200 86
MBIA, Inc. ........................................ 300 34
Safeco Corp. ...................................... 900 42
St. Paul Cos., Inc. ............................... 600 46
Torchmark, Inc. ................................... 500 36
Transamerica Corp. ................................ 500 47
Travelers Group, Inc. ............................. 4,733 298
UNUM Corp. ........................................ 1,000 42
USF & G Corp. ..................................... 700 17
------
2,106
Leisure and Recreation Products and Services-1.0%
Brunswick Corp. ................................... 700 22
Harrah's Entertainment, Inc. * ..................... 700 13
Mattel, Inc. ...................................... 2,100 71
The Walt Disney Co. ............................... 4,900 393
------
499
Lodging and Restaurants-1.0%
Darden Restaurants, Inc. .......................... 900 $ 8
HFS, Inc. * ........................................ 1,200 70
Hilton Hotels Corp. ............................... 1,900 50
ITT Corp. * ........................................ 800 49
Marriot International, Inc. ....................... 900 55
McDonald's Corp. .................................. 5,000 242
Wendy's International, Inc. ....................... 900 23
------
497
Machinery and Equipment-1.7%
Allied Signal, Inc. ............................... 2,100 176
Black & Decker Corp. .............................. 700 26
Briggs & Stratton Corp. ........................... 200 10
Case Corp. ........................................ 500 34
Caterpillar, Inc. ................................. 1,400 150
Cincinnati Milacron, Inc. ......................... 300 8
Cooper Industries, Inc. ........................... 900 45
Crane Co. ......................................... 300 13
Deere & Co. ....................................... 1,900 104
Dover Corp. ....................................... 800 49
Giddings & Lewis, Inc. ............................ 200 4
Harnischfeger Industries, Inc. .................... 300 12
Ingersoll-Rand Co. ................................ 900 56
Maytag Corp. ...................................... 600 16
McDermott International, Inc. ..................... 300 9
PACCAR, Inc. ...................................... 600 28
Parker-Hannifin Corp. ............................. 500 30
Perkin-Elmer Corp. ................................ 300 24
Snap-On, Inc. ..................................... 400 16
</TABLE>
111
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Machinery and Equipment-Continued
Stanley Works ..................................... 600 $ 24
Thermo Electron Corp. * ............................ 1,100 37
W.W. Grainger, Inc. ............................... 400 31
------
902
Media-1.7%
Comcast Corp. - Cl. A .............................. 2,300 49
CUC International, Inc. * .......................... 3,000 77
Dow Jones & Co., Inc. ............................. 700 28
Gannett Co., Inc. ................................. 1,000 99
Interpublic Group Cos., Inc. ...................... 700 43
King World Productions, Inc. * ..................... 200 7
Knight-Ridder, Inc. ............................... 700 34
McGraw-Hill Cos., Inc. ............................ 700 41
Meredith Corp. .................................... 300 9
New York Times Co. - Cl. A ......................... 800 40
Tele-Communications, Inc. * ........................ 4,700 70
Time Warner, Inc. ................................. 4,100 198
Tribune Co. ....................................... 900 43
U.S. West, Inc. * .................................. 4,600 93
Viacom, Inc. - Cl. B* .............................. 2,600 78
------
909
Metals and Mining-1.2%
Alcan Aluminium, Ltd. ............................. 1,600 56
Allegheny Teldyne, Inc. ........................... 1,300 35
Aluminum Co. of America ........................... 1,300 98
Asarco, Inc. ...................................... 400 12
Barrick Gold Corp. ................................ 2,700 59
Battle Mountain Gold Co. .......................... 1,300 7
Bethleham Steel Corp. * ............................ 900 9
Cyprus Amax Minerals Co. .......................... 700 17
Echo Bay Mines, Ltd. .............................. 800 5
Freeport-McMoRan Copper & Gold .................... 1,400 41
Homestake Mining Co. .............................. 1,100 14
Inco, Ltd. ........................................ 1,200 36
Inland Steel Industries, Inc. ..................... 300 8
Newmont Mining Corp. .............................. 1,101 43
Nucor Corp. ....................................... 600 34
Phelps Dodge Corp. ................................ 500 43
Placer Dome, Inc. ................................. 1,700 28
Reynolds Metals Co. ............................... 500 36
Timken Co. ........................................ 400 14
USX-US Steel Group, Inc. .......................... 600 21
Worthington Industries, Inc. ...................... 900 16
------
632
Miscellaneous-0.9%
American Greetings Corp. - Cl. A ................... 500 19
Avery Dennison Corp. .............................. 700 28
Brown-Forman Corp. - Cl. B ......................... 500 24
Crown Cork & Seal Co., Inc. ....................... 900 48
Ecolab, Inc. ...................................... 500 24
EG & G, Inc. ...................................... 300 7
Ikon Office Solutions, Inc. ....................... 1,000 25
Johnson Controls, Inc. ............................ 700 29
Jostens, Inc. ..................................... 200 5
Millipore Corp. ................................... 300 13
</TABLE>
112
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK-CONTINUED
Miscellaneous-Continued
Pall Corp. ........................................ 900 $ 21
Service Corp. International ....................... 1,700 56
Stone Container Corp. ............................. 800 11
Waste Management, Inc. ............................ 3,300 106
Western Atlas, Inc. * .............................. 400 29
------
445
Oils and Natural Gas Equipment and Services-0.8%
Baker Hughes, Inc. ................................ 1,000 39
Dresser Industries, Inc. .......................... 1,300 48
Halliburton Co. ................................... 900 71
NorAm Energy Corp. ................................ 1,100 17
ONEOK, Inc. ....................................... 200 6
Rowan Cos., Inc. * ................................. 700 20
Schlumberger, Ltd. ................................ 1,800 225
------
426
Oils and Natural Gas Exploration and Production-6.5%
Amerada Hess Corp. ................................ 700 39
Amoco Corp. ....................................... 3,600 313
Ashland, Inc. ..................................... 500 23
Atlantic Richfield Co. ............................ 2,400 169
Burlington Resources, Inc. ........................ 900 40
Chevron Corp. ..................................... 4,800 355
Coastal Corp. ..................................... 800 43
Columbia Gas System, Inc. ......................... 400 26
Consolidated Natural Gas Co. ...................... 700 38
Enron Corp. ....................................... 1,800 73
ENSERCH Corp. ..................................... 500 11
Exxon Corp. ....................................... 18,200 1,120
Helmerich & Payne, Inc. ........................... 200 12
Kerr-McGee Corp. .................................. 400 25
Louisiana Land & Exploration Co. .................. 200 11
Mobil Corp. ....................................... 5,800 405
Occidental Petroleum Corp. ........................ 2,500 63
Oryx Energy Co. * .................................. 800 17
Pennzoil Co. ...................................... 400 31
Phillips Petroleum Co. ............................ 1,900 83
Santa Fe Energy Resources, Inc. ................... 800 12
Sonat, Inc. ....................................... 600 31
Sun Co., Inc. ..................................... 500 16
Texaco, Inc. ...................................... 1,900 207
Union Pacific Resources Group, Inc. ............... 1,808 45
Unocal Corp. ...................................... 1,800 70
USX-Marathon Group ................................ 2,000 58
Williams Cos., Inc. ............................... 1,150 50
------
3,386
Paper and Forest Products-1.3%
Boise Cascade Corp. ............................... 300 11
Champion International Corp. ...................... 700 39
Georgia Pacific Corp. ............................. 700 60
International Paper Co. ........................... 2,200 107
James River Corp. of Virginia ..................... 700 26
Kimberly-Clark Corp. .............................. 4,100 204
Mead Corp. ........................................ 400 25
Potlatch Corp. .................................... 200 9
Temple-Inland, Inc. ............................... 400 22
</TABLE>
113
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Paper and Forest Products-Continued
Union Camp Corp. .................................... 500 $ 25
Westvaco Corp. ...................................... 800 25
Weyerhaeuser Co. .................................... 1,500 78
Willamette Industries, Inc. ......................... 400 28
------
659
Photography and Related Services-0.4%
Bemis Company, Inc. ................................. 400 17
Eastman Kodak Co. ................................... 2,400 184
Polaroid Corp. ...................................... 300 17
------
218
Pollution Control Equipment and Services-0.1%
Browning-Ferris Industries, Inc. .................... 1,500 51
Safety Kleen Corp. .................................. 300 5
------
56
Printing-0.1%
Deluxe Corp. ........................................ 600 20
R.R. Donnelley & Sons Co. ........................... 1,000 37
------
57
Publications-0.1%
Times Mirror Co. - Cl. A ............................ 700 39
Real Estate Development-0.0%
Centex Corp. ........................................ 200 8
Real Estate Operations-0.0%
Pulte Corp. ......................................... 200 7
Retail-4.4%
American Stores Co. ................................. 1,100 54
AutoZone, Inc. * .................................... 1,100 26
Charming Shoppes, Inc. * ............................ 600 3
Circuit City Stores, Inc. ........................... 700 25
Costco Cos., Inc. * ................................. 1,500 49
Dayton-Hudson Corp. ................................. 1,600 85
Dillard's, Inc. ..................................... 800 28
Federated Department Stores, Inc. * ................. 1,500 52
Gap, Inc. ........................................... 2,000 78
Harcourt General, Inc. .............................. 500 24
Hasbro, Inc. ........................................ 950 27
Home Depot, Inc. .................................... 3,600 248
J.C. Penney, Inc. ................................... 1,800 94
Kmart Corp. * ....................................... 3,400 42
Kroger Co. * ........................................ 2,000 58
Limited, Inc. ....................................... 2,100 43
Liz Claiborne, Inc. ................................. 500 23
Longs Drug Stores, Inc. ............................. 200 5
Lowe's Cos., Inc. ................................... 1,300 48
May Department Stores Co. ........................... 1,800 85
Mercantile Stores Co., Inc. ......................... 300 19
Nike, Inc. - Cl. B .................................. 2,100 123
Nordstrom, Inc. ..................................... 600 29
Pep Boys - Manny, Moe & Jack ........................ 400 14
Rite Aid Corp. ...................................... 900 45
Sears Roebuck & Co. ................................. 2,900 156
Tandy Corp. ......................................... 400 22
TJX Cos., Inc. ...................................... 1,200 32
</TABLE>
114
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Retail-Continued
Toys "R" Us, Inc. * ................................. 2,000 $ 70
Wal-Mart Stores, Inc. ............................... 16,500 558
Walgreen Co. ........................................ 1,800 97
Winn-Dixie Stores, Inc. ............................. 1,100 41
Woolworth Corp. * ................................... 900 22
------
2,325
Soap, Cosmetics and Personal Care-0.1%
Alberto-Culver Co. .................................. 300 8
International Flavors & Fragrances, Inc. ............ 800 40
------
48
Telecommunications-1.5%
Airtouch Communications, Inc. * ..................... 3,600 99
Andrew Corp. * ...................................... 750 21
DSC Communications Corp. * .......................... 800 18
General Instrument Corp. * .......................... 900 23
Lucent Technologies, Inc. ........................... 4,700 339
Northern Telecom, Ltd. .............................. 1,900 173
Scientific-Atlanta, Inc. ............................ 600 13
Tellabs, Inc. * ..................................... 1,300 73
------
759
Textiles-0.1%
Fruit of the Loom, Inc. - Cl. A * ................... 600 19
Russell Corp. ....................................... 200 6
Springs Industries, Inc. ............................ 100 5
VF Corp. ............................................ 500 42
------
72
Transportation-1.2%
AMR Corp. * ......................................... 700 65
Burlington Northern Santa Fe ........................ 1,100 99
Caliber System, Inc. ................................ 300 11
CSX Corp. ........................................... 1,600 89
Delta Air Lines, Inc. ............................... 600 49
Federal Express Corp. ............................... 800 46
Laidlaw, Inc. ....................................... 2,200 30
Norfolk Southern Corp. .............................. 900 91
Southwest Airlines Co. .............................. 1,000 26
U.S. Airways Group, Inc. * .......................... 600 21
Union Pacific Corp. ................................. 1,800 127
------
654
Utilities - Electric-2.3%
American Electric Power Co. ......................... 1,400 59
Baltimore Gas & Electric Co. ........................ 1,000 27
Carolina Power & Light Co. .......................... 1,100 39
Central & South West Corp. .......................... 1,600 34
CINergy Corp. ....................................... 1,100 38
Consolidated Edison Co. of New York, Inc. ........... 1,800 53
Dominion Resources, Inc. ............................ 1,300 48
DTE Energy Co. ...................................... 1,000 28
Duke Energy Co. ..................................... 2,644 127
Edison International ................................ 2,900 72
Entergy Corp. ....................................... 1,700 47
FPL Group, Inc. ..................................... 1,300 60
GPU, Inc. ........................................... 800 29
Houston Industries, Inc. ............................ 1,700 36
Niagara Mohawk Power Corp. * ........................ 1,200 10
</TABLE>
115
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK-CONTINUED
<S> <C> <C>
Utilities - Electric-Continued
Northern States Power Co. ........................... 500 $ 26
Ohio Edison Co. ..................................... 1,300 28
PacifiCorp .......................................... 2,100 46
Peco Energy Co. ..................................... 1,600 34
PG & E Corp. ........................................ 3,100 75
PP & L Resources, Inc. .............................. 1,200 24
Public Services Enterprise Group, Inc. .............. 1,900 48
Southern Co. ........................................ 4,900 107
Texas Utilities Co. ................................. 1,600 55
Unicom Corp. ........................................ 1,600 36
Union Electric Co. .................................. 700 26
-------
1,212
Utilities - Gas-0.1%
NICOR, Inc. ......................................... 300 11
Pacific Enterprises ................................. 600 20
Peoples Energy Corp. ................................ 200 7
-------
38
Utilities - Telecommunications-5.5%
Alltel Corp. ........................................ 1,300 43
Ameritech Corp. ..................................... 4,000 272
AT & T Corp. ........................................ 11,800 414
Bell Atlantic Corp. ................................. 3,200 243
BellSouth Corp. ..................................... 7,200 334
GTE Corp. ........................................... 7,000 307
MCI Communications Corp. ............................ 5,000 191
NYNEX Corp. ......................................... 3,200 184
SBC Communications, Inc. ............................ 6,624 410
Sprint Corp. ........................................ 3,100 163
U.S. West Communications Group ...................... 3,500 132
Worldcom, Inc. ...................................... 6,600 211
-------
2,904
-------
TOTAL COMMON STOCK- 94.8% 49,635
Par
Value
(000's)
GOVERNMENTAL SHORT-TERM NOTES-0.4%
U.S. Treasury
5.01% due 9/18/97 ................................. $ 200 198
SHORT-TERM INVESTMENTS
Dreyfus Cash Management Plus ........................ 1,662 1,662
Valiant Fund ........................................ 1,546 1,546
-------
TOTAL SHORT-TERM INVESTMENTS- 6.1% 3,208
------ -------
TOTAL INVESTMENTS- 101.3% 53,041
Payables, less cash and receivables- (1.3)% (706)
------ -------
NET ASSETS- 100.0% $52,335
====== =======
</TABLE>
* Non-income producing security.
See notes to financial statements
116
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Banks and Finance-4.2%
BankBoston Capital Trust II - Gtd. Bonds (US)
7.75% due 12/15/26................................ $ 300 $ 288
KeyCorp - Sub. Notes (US)
6.75% due 3/15/06................................. 500 486
------
774
Financial Services-19.2%
Countrywide Home Loans - Ser. 1997-4 Cl. A (US)
8.00% due 7/25/27................................. 600 612
CS First Boston Mortgage Securities Corp. - Ser.
1997-C1 Cl. A1B (US) 7.15% due 8/20/06............ 700 701
Eaglemark Credit - Asset Bkd. Ser. 96-2A (US)
6.75% due 11/15/02................................ 326 329
First Plus Home Loan Trust - Ser. 1997-2 Cl. A2 (US)
6.31% due 4/10/23................................. 500 500
Merrill Lynch Mortgage Investors, Inc. (US)
6.95% due 6/18/29................................. 500 502
Nationwide Financial Services, Inc. - Sr. Notes (US)
8.00% due 3/01/27................................. 500 506
Onyx Acceptance Grantor Trust - Ser. 1996-2 Cl. A
(US) 6.40% due 10/15/01........................... 248 248
Washington Mutual Capital I (US)
8.375% due 6/01/27................................ 100 101
------
3,499
Foreign-5.7%
Banco do Brasil - Debs. 144A (BR) (a)
9.00% due 8/05/98................................. 300 303
Comtel Brasileira, Ltd. - Notes 144A (BR) (a)
10.75% due 9/26/04................................ 100 107
Indah Kiat International Finance - Bonds (NL)
12.50% due 6/15/06................................ 100 113
Midland Bank plc - Sub. Notes (GB)
7.625% due 6/15/06................................ 500 516
------
1,039
Foreign Governmental-30.8%
Australian Government - Bonds (AU)
6.75% due 11/15/06................................ 200 149
Finnish Government - Bonds (FI)
7.25% due 4/18/06................................. 1,000 209
Government of Australia - Bonds (AU)
12.00% due 11/15/01............................... 450 414
Government of Canada - Debs. (CA)
9.00% due 6/01/25................................. 550 501
Government of Japan - Bonds (JP)
5.50% due 3/20/02................................. 60,000 612
Government of Spain - Bonds (ES)
8.80% due 4/30/06................................. 12,000 95
Kingdom of Belgium - Debs. (BE)
7.75% due 12/22/00................................ 5,800 179
Province of Quebec - Debs. (CA)
6.50% due 1/17/06................................. 515 495
Republic of Italy - Debs. (IT)
10.50% due 4/01/00................................ 885,000 575
Republic of Poland - Bonds (PL)
4.00% due 10/27/14................................ 150 128
Republic of Venezuela - Debs. (VE)
6.50% due 12/18/07................................ 250 232
</TABLE>
117
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Foreign Governmental-Continued
Swedish Government - Debs. (SE)
13.00% due 6/15/01................................ $ 700 $ 114
6.50% due 10/25/06................................ 1,100 141
Treuhandanstalt - Bonds (DE)
7.50% due 9/09/04................................. 550 357
U.K. Treasury - Bonds (GB)
8.00% due 6/10/03................................. 92 160
6.75% due 11/26/04................................ 270 443
7.75% due 9/08/06................................. 225 390
7.50% due 12/07/06................................ 260 442
-------
5,636
Government Agencies-21.7%
Federal Gold Loan Mortgage Corp. (US)
8.00% due 2/01/27................................. 291 298
Federal National Mortgage Assoc. (US)
8.00% due 6/01/11-12/01/26........................ 753 772
7.50% due 7/01/26-1/01/99......................... 643 645
7.00% due 2/01/27................................. 398 390
Government National Mortgage Assoc. (US)
9.00% due 6/15/16-12/15/16........................ 743 799
7.50% due 6/15/26-7/20/26......................... 1,060 1,061
-------
3,965
Media-0.7%
TCI Communications, Inc. - Debs. (US)
7.875% due 2/15/26................................ 140 133
Metals and Mining-0.9%
Oregon Steel Mills, Inc. - 1st Mtge. Notes (US)
11.00% due 6/15/03................................ 50 54
Ryderson Tull, Inc. - Notes (US)
9.125% due 7/15/06................................ 100 104
-------
158
Miscellaneous-0.6%
Allied Waste NA - Sr. Sub. Notes 144A (US) (a)
10.25% due 12/01/06............................... 100 107
Telecommunications-0.5%
Paging Network, Inc. - Sr. Sub. Notes (US)
10.00% due 10/15/08............................... 100 96
U.S. Governmental-1.4%
U.S. Treasury - Notes (US)
5.875% due 2/15/00................................ 250 248
Utilities - Electric-5.0%
National Rural Utilities - Bonds (US)
7.30% due 9/15/06................................. 500 509
Niagara Mohawk Power Corp. - 1st Mtge. Bonds (US)
7.375% due 8/01/03................................ 100 98
Southern California Edison Co. - 1st Ref. Mtge.
Bonds (US) 7.125% due 7/15/25..................... 325 306
-------
913
Utilities - Telecommunications-0.6%
Philippine Long Distance Telephone Co. - Debs. (US)
10.625% due 6/02/04............................... 100 112
-------
TOTAL PUBLICLY-TRADED BONDS- 91.3% 16,680
</TABLE>
118
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-6.5%
Investment in joint trading account (Note B) (US)
5.81% due 7/01/97................................. $ 1,196 $ 1,196
------- -------
TOTAL INVESTMENTS- 97.8% 17,876
Cash and receivables, less payables- 2.2% 403
------- -------
NET ASSETS- 100.0% $18,279
======= =======
</TABLE>
(a) Pursuant to Rule 144A under the Securities Act of 1933, these
securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 1997, these
securities aggregated $517 or 2.8% of the net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
<TABLE>
<CAPTION>
Market % of
Industry Country Value Long-Term
Abbreviation (000's) Investments
<S> <C> <C> <C>
UNITED STATES............................. US $10,634 63.7%
UNITED KINGDOM............................ GB 1,435 8.6%
CANADA.................................... CA 996 6.0%
JAPAN..................................... JP 612 3.7%
ITALY..................................... IT 575 3.4%
AUSTRALIA................................. AU 563 3.4%
BRAZIL.................................... BR 410 2.5%
GERMANY................................... DE 357 2.1%
SWEDEN.................................... SE 255 1.5%
VENEZUELA................................. VE 232 1.4%
FINLAND................................... FI 209 1.2%
BELGIUM................................... BE 179 1.1%
POLAND.................................... PL 128 0.8%
SPAIN..................................... ES 95 0.6%
======= =====
$16,680 100.%
======= =====
</TABLE>
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE A--ORGANIZATION
The John Hancock Variable Series Trust I (the "Fund") is a diversified open-
end management investment company registered under the Investment Company Act
of 1940, as amended. The Fund is organized as a Massachusetts business trust.
The Fund consists of eighteen portfolios: Large Cap Growth, Sovereign Bond,
International Equity, Small Cap Growth, International Balanced, Mid Cap
Growth, Large Cap Value, Money Market, Mid Cap Value, Special Opportunities,
Real Estate Equity, Growth & Income, Managed, Short-Term U.S. Government,
Small Cap Value, International Opportunities, Equity Index, and Strategic
Bond. The Fund may add or delete portfolios in the future to accommodate
various investment objectives. The Fund has issued shares of beneficial
interest exclusively to John Hancock Variable Life Account U ("JHVLAU"), John
Hancock Variable Life Account V ("JHVLAV"), John Hancock Variable Life Account
S ("JHVLAS"), and John Hancock Variable Annuity Account I ("JHVAAI") to fund
policies and contracts issued by the John Hancock Variable Life Insurance
Company ("JHVLICO"), and to John Hancock Variable Annuity Account U
("JHVAAU"), John Hancock Variable Annuity Account V ("JHVAAV"), and John
Hancock Mutual Variable Life Insurance Account UV ("JHMVLAUV") to fund
contracts and policies issued by John Hancock Mutual Life Insurance Company
("John Hancock").
NOTE B--ACCOUNTING POLICIES
Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Valuation of Investments: For the Large Cap Growth, Small Cap Growth, Mid
Cap Growth, Large Cap Value, Mid Cap Value, Special Opportunities, Real Estate
Equity, Growth & Income, Managed, Small Cap Value, and Equity Index
Portfolios: Common stocks traded on national securities exchanges are normally
valued on the basis of closing prices. Securities traded in the over-the-
counter market and securities with no sales on the day of valuation are
normally valued at their last available bid price.
For the Sovereign Bond, Managed, Short-Term U.S. Government, and Strategic
Bond Portfolios: Debt investment securities having a primary market over-the-
counter are valued on the basis of valuations furnished by a pricing service
which determines valuations for normal institutional size trading units of
debt securities, without exclusive reliance upon quoted prices.
For the Money Market Portfolio: The Board of Trustees has determined that
the appropriate method for valuing Portfolio securities is amortized cost, so
long as the average weighted maturity of money market instruments comprising
the Portfolio does not exceed 90 days. Accordingly, Portfolio securities are
valued at amortized cost which approximates market value. The amortized cost
method involves valuing a security at its cost on the date of purchase and
thereafter assuming a constant amortization to maturity of the difference
between the principal amount due at maturity and the cost of the security to
the Portfolio.
For each of the Portfolios, short-term investments, with a maturity not to
exceed 60 days, are valued at amortized cost which approximates market value.
For the International Portfolios: Investments in securities traded on
national securities exchanges in the United States or on equivalent foreign
exchanges are normally valued at the last quoted sales price on such exchanges
as of the close of business on the date of which assets are valued. Securities
traded in the
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
over-the-counter market and securities traded with no sales on the day of
valuation are normally valued at their last available bid price. All Portfolio
securities initially expressed in terms of foreign currencies have been
translated into U.S. dollars as described in "Currency Translation."
Investment securities for which no current market quotations are readily
available, including certain foreign securities, when held by the Portfolios,
are valued at fair value as determined in good faith by the Board of Trustees.
Investment security transactions are recorded on the date of purchase or
sale. Dividend income is recorded on the ex-dividend date and interest income
is recorded on the accrual basis. Dividend income for the Large Cap Growth,
International Equities, International Balanced, Mid Cap Growth, Large Cap
Value, Mid Cap Value, Special Opportunities, Growth & Income, Managed,
International Opportunities, Equity Index and Strategic Bond Portfolios are
shown net of foreign taxes withheld of $15, $204, $33, $1, $5, $1, $10, $132,
$57, $30, $2, and $7, respectively. Realized gains and losses from security
transactions are determined on the basis of identified cost.
Repurchase Agreements: The Portfolios of the Fund may enter into repurchase
agreements which are contracts under which a Portfolio would acquire a
security for a relatively short period (usually not more than 7 days) subject
to the obligation of the seller to repurchase and the Portfolio to resell such
security at a fixed time and price (representing the Portfolio's cost plus
interest). A Portfolio will enter into repurchase agreements only with member
banks of the Federal Reserve System and with "primary dealers" in United
States government securities. The underlying securities, which represent the
collateral of the agreement, must be marked to market daily to ensure that
each repurchase agreement is fully collateralized at all times. A Portfolio
will not invest more than 10% of its net assets in repurchase agreements
maturing in more than 7 days.
Joint Repurchase Agreements: The Small Cap Growth, International Equities
and Special Opportunities Portfolios of the Fund, along with other registered
investment companies having a management contract with John Hancock Advisers,
Inc. (the "Sub-Adviser"), an indirect wholly-owned subsidiary of John Hancock,
may participate in a joint repurchase agreement pursuant to an exemptive order
issued by the Securities and Exchange Commission. 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 Sub-Adviser is responsible for ensuring that the
agreement is fully collateralized at all times.
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Joint Trading Account: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the order permits the existing Portfolios
of the Fund to pool daily uninvested cash balances, together with the balances
of any future Portfolios of the Fund, into a joint account for the purpose of
investing the cash balances in short-term repurchase agreements, commercial
paper and other short-term investments which in no event will have a maturity
in excess of seven days. Joint Account holdings as of June 30, 1997:
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
-------------- -------- --------
<S> <C> <C>
Disney, Walt Company
5.55% due 07/01/97.......................................... $ 25,000 $ 25,000
General Motors Acceptance Corp.
5.53% due 07/01/97.......................................... 12,397 12,397
Sears Roebuck Acceptance Corp.
5.63% due 07/01/97.......................................... 25,000 25,000
Goldman Sachs Group LP
5.65% due 07/02/97.......................................... 25,000 24,996
Sheffield Receivables Corp.
5.62% due 07/02/97.......................................... 14,593 14,591
Falcon Asset Securities
5.65% due 07/03/97.......................................... 15,975 15,970
McKenna Triangle National Corp.
5.57% due 07/03/97.......................................... 13,000 12,996
National Australia Funding
5.62% due 07/03/97.......................................... 29,389 29,380
Prudential Funding Corp.
5.53% due 07/03/97.......................................... 10,300 10,297
Sheffield Receivables Corp.
5.62% due 07/03/97.......................................... 11,068 11,065
Sheffield Receivables Corp.
5.65% due 07/03/97.......................................... 8,000 7,997
DuPont E.I. DeNemours and Co.
5.65% due 07/07/97.......................................... 3,022 3,019
General Electric Capital Corp.
5.67% due 07/07/97.......................................... 10,000 9,991
Unilever Corp.
5.64% due 07/07/97.......................................... 40,000 39,962
-------- --------
Joint Account Totals........................................ $242,744 $242,661
======== ========
</TABLE>
Financial Futures Contracts: The Sovereign Bond, Special Opportunities,
Managed, Short-Term U.S. Government, Large Cap Growth, Large Cap Value, Mid
Cap Growth, Mid Cap Value, Small Cap Growth, Small Cap Value, Strategic Bond,
International Opportunities, International Balanced and Equity Index
Portfolios may buy and sell financial futures contracts to hedge against the
effects of fluctuations in interest rates and other market conditions. At the
time a Portfolio enters into a financial futures contract, it will be required
to deposit with its custodian a specified amount of cash or U.S. government
securities, known as "initial margin." Each day, the futures contract is
valued at the official settlement price of the board of trade or U.S.
commodities exchange. Daily variation margin adjustments, arising from this
"mark to market," are recorded by the Portfolios as unrealized gains or
losses.
When the contracts are closed, the Portfolio recognizes a gain or a loss.
Risk of entering into futures contracts include the possibility that there may
be an illiquid and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. In addition,
the Portfolio
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
could be prevented from opening or realizing the benefits of closing out
futures positions because of position limits or limits on daily price
fluctuations imposed by an exchange. At June 30, 1997, open positions in
financial futures contracts were as follows:
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Face
Expiration Amount Unrealized
Purchased Date at Value Gain/(Loss)
- --------- ----------- -------- -----------
<S> <C> <C> <C>
24 contracts
10 Years U.S. Treasury Notes.................. Sept., 1997 $2,589 $ 8
19 contracts
10 Years U.S. Treasury Bonds.................. Sept., 1997 2,050 7
------ ----
$4,639 $ 15
====== ====
EQUITY INDEX PORTFOLIO
<CAPTION>
Face
Expiration Amount Unrealized
Purchased Date at Value Gain/(Loss)
- --------- ----------- -------- -----------
<S> <C> <C> <C>
2 contracts
S&P 500 Index Futures......................... Sept., 1997 $2,671 $(20)
</TABLE>
Forward Foreign Currency Contracts: The Fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage the
Portfolio's currency exposure. Contracts to buy generally are used to acquire
exposure to foreign currencies, while contracts to sell are used to hedge the
Portfolio's investments against currency fluctuations. Neither type of foreign
currency transaction will eliminate fluctuations in the prices of the
Portfolio's securities or prevent loss if the price of such securities should
decline. The U.S. dollar value of a forward foreign currency contract is
determined using forward exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts realized gain (loss)
is recognized on settlement date.
Currency Translation: For the International Portfolios: all assets or
liabilities initially expressed in terms of foreign currencies are translated
into U.S. dollars based on London currency exchange quotations as of 5:00
p.m., London time, on the date of any determination of the net asset value of
the Fund. Unrealized exchange adjustments are included in unrealized
appreciation (depreciation) of investments. Transactions affecting statement
of operations accounts and net realized gain (loss) on investments are
translated at the rates prevailing at the dates of transactions.
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of forward foreign
currency contracts, disposition of foreign currencies, currency gains and
losses realized between trade and settlement dates of security transactions,
and the difference between the amounts of net investment income accrued and
the U.S. dollar amount actually received.
Dividends: A dividend of its net investment income will be declared and
distributed daily by the Money Market Portfolio. Dividends of net investment
income will be declared and distributed monthly by other Portfolios. Each
Portfolio will distribute all of its net realized capital gains annually, at
the end of its fiscal year.
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Federal Income Taxes: Each of the Portfolios of the Fund intends to comply
with the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its taxable income
to shareholders. Therefore, no federal income tax provision is required.
As of December 31, 1996, the Fund had approximate net tax basis capital loss
carryforwards, which may be applied against any net taxable gains, as follows:
the Small Cap Growth, Mid Cap Growth, and International Opportunities
Portfolios had $923, $315 and $7 respectively, all of which expire in 2004.
Expenses: Expenses directly attributable to a Portfolio are charged to that
Portfolio. Expenses not directly attributed to a Portfolio are allocated on
the basis of relative net assets.
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On February 18, 1997, the Fund renewed its Investment Advisory Agreement
with John Hancock. On May 1, 1997 the Fund renewed its Investment Advisory
Agreement for Equity Index and Short-Term U.S. Government Portfolios with John
Hancock. For its services, John Hancock receives monthly compensation at the
following rates:
For the Growth & Income, Sovereign Bond and Money Market Portfolios,
0.25% on an annual basis of the net assets of each Portfolio;
For the Large Cap Growth and Managed Portfolios, 0.40% on an annual basis
of the first $500,000 of the net assets of each Portfolio; 0.35% for net
assets between $500,000 and $1,000,000; and 0.30% for that portion in
excess of $1,000,000.
For the Real Estate Equity Portfolio, 0.60% on an annual basis of the
first $300,000 of the Portfolio's net assets; 0.50% for the net assets
between $300,000 and $800,000; and 0.40% for net assets in excess of
$800,000.
For the International Equities Portfolio, 0.60% on an annual basis of the
first $250,000 of the Portfolio's net assets; 0.55% for net assets between
$250,000 and $500,000; and 0.50% for net assets in excess of $500,000.
For the Special Opportunities Portfolio, 0.75% on an annual basis of the
first $250,000 of the Portfolio's net assets; 0.70% for net assets between
$250,000 and $500,000; and 0.65% for net assets in excess of $500,000.
For the Short-Term U.S. Government Portfolio, 0.30% on an annual basis of
its net assets.
For the Large Cap Value and Small Cap Growth Portfolios, 0.75% on an
annual basis of the average daily net assets of each Portfolio;
For the Mid Cap Growth Portfolio, 0.85% on an annual basis of the first
$100,000 of the Portfolio's net assets; and 0.80% on an annual basis of the
portion in excess of $100,000;
For the Mid Cap Value Portfolio, 0.80% on an annual basis of the first
$250,000 of the Portfolio's net assets; 0.775% for net assets between
$250,000 and $500,000; and 0.75% for net assets between $500,000 and
$750,000, and 0.725% for net assets in excess of $750,000;
For the Equity Index Portfolio, 0.20% on an annual basis of the first
$75,000 of the Portfolio's net assets; 0.19% for net assets between $75,000
and $125,000; and 0.18% for the net assets in excess of $125,000;
For the Small Cap Value Portfolio, 0.80% on an annual basis of the first
$100,000 of the Portfolio's net assets; 0.75% for net assets between
$100,000 and $200,000; and 0.65% for net assets in excess of $200,000;
124
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES--
Continued
For the Strategic Bond Portfolio, 0.75% on an annual basis of the first
$25,000 of the Portfolio's net assets; 0.65% for net assets between $25,000
and $75,000; 0.55% for net assets between $75,000 and $150,000; and 0.50%
for the net assets in excess of $150,000;
For the International Opportunities Portfolio, 1.00% on an annual basis
of the first $20,000 of the Portfolio's net assets; 0.85% for net assets
between $20,000 and $50,000; and 0.75% for net assets in excess of $50,000;
and
For the International Balanced Portfolio, 0.85% on an annual basis of the
first $100,000 of the Portfolio's net assets; 0.70% for the net assets in
excess of $100,000.
John Hancock voluntarily reimbursed and/or waived all investment advisory
and other fund expenses of the Equity Index Portfolio for the period ended
June 30, 1997. The Investment Adviser expects to voluntary waive all
investment advisory and other fund expenses during the Trust's fiscal 1997
year with respect to the Equity Index Portfolio. Such expense waiver is
subject to termination at any time by the Investment Adviser without notice to
shareholders. Upon termination of the voluntary expense waiver with respect to
the Equity Index Portfolio, any future expense reimbursement by the Investment
Adviser is subject to limitations as stated in the Investment Advisory
agreement.
During the period ended June 30, 1997, the Investment Adviser voluntarily
contributed approximately $94 to the Equity Index Portfolio. John Hancock
received no shares of capital stock or other consideration in exchange for the
contribution which increased the Portfolio's net asset value.
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment Associates with respect to the Large Cap Growth, Managed, Real
Estate Equity, and Short-Term U.S. Government Portfolios, with John Hancock
Advisers with respect to the Sovereign Bond, Small Cap Growth, International
Equities, and Special Opportunities Portfolios, each of whom is an affiliate
of John Hancock, and under the supervision of John Hancock, is responsible for
the day-to-day investment management of each of the Portfolios. John Hancock
maintains responsibility for the day-to-day management of the Money Market
Portfolio.
John Hancock has also entered into the Sub-Advisory Agreements with T. Rowe
Price Associates, Inc., with respect to the Large Cap Value Portfolio; with
Rowe Price-Fleming International, with respect to the International
Opportunities Portfolio; with Janus Capital Corporation, with respect to the
Mid Cap Growth Portfolio; with Neuberger & Berman Management, L.P., with
respect to the Mid Cap Value Portfolio; with INVESCO Management Research, with
respect to the Small Cap Value Portfolio; with J.P. Morgan Investment
Management Inc., with respect to the Strategic Bond Portfolio; with Brinson
Partners, Inc., with respect to the International Balanced Portfolio; and with
State Street Bank and Trust with respect to the Equity Index Portfolio, each
of whom under the supervision of John Hancock, is responsible for the day-to-
day investment management of each of the Portfolios.
John Hancock is the principal underwriter and transfer agent of the Fund.
Certain officers and trustees of the Fund are officers and directors of
JHVLICO, JHVLAU, JHVLAV, JHVLAS, JHVAAI, JHMVLAUV, JHVAAV, AND JHVAAU, and
some are also officers of John Hancock. Fees for independent trustees are paid
by the Fund.
125
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES--
Continued
In the event that normal operating expenses of each Portfolio, exclusive of
investment advisory fee, taxes, interest, brokerage commissions and
extraordinary expenses, shall exceed 0.25% of each Portfolio's daily net asset
value, John Hancock and JHVLICO will reimburse each Portfolio for such excess.
Accordingly, for the period ended June 30, 1997, the reimbursement paid from
John Hancock and JHVLICO were $18 to Small Cap Growth, $32 to International
Balanced, $38 to Mid Cap Growth, $6 to Large Cap Value, $21 to Mid Cap Value,
$25 to Small Cap Value, $19 to International Opportunities, $95 to Equity
Index, and $19 to Strategic Bond Portfolios.
NOTE D--INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities, for each Portfolio for the period ended June 30, 1997
were as follows:
<TABLE>
<CAPTION>
Sales and
Purchases Maturities
---------- ----------
<S> <C> <C>
Large Cap Growth......................................... $ 329,837 $ 292,524
Sovereign Bond........................................... 447,663 451,406
International Equities................................... 62,955 51,769
Small Cap Growth......................................... 23,837 10,864
International Balanced................................... 10,702 9,399
Mid Cap Growth........................................... 17,295 9,199
Large Cap Value.......................................... 19,340 3,022
Money Market............................................. None None
Mid Cap Value............................................ 16,368 5,617
Special Opportunities.................................... 385,514 349,663
Real Estate Equity....................................... 34,881 13,328
Growth & Income.......................................... 830,400 784,961
Managed.................................................. 2,767,906 2,694,622
Short-Term U.S. Government............................... 11,712 7,478
Small Cap Value.......................................... 15,252 7,674
International Opportunities.............................. 8,476 1,446
Equity Index............................................. 43,135 10,105
Strategic Bond........................................... 13,145 7,417
</TABLE>
126
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE D--INVESTMENT TRANSACTIONS--Continued
The identified cost of investments owned for each Portfolio (including
earned discount on corporate Short-term notes, and commercial paper) and their
respective gross unrealized appreciation/(depreciation) at June 30, 1997 are
as follows:
<TABLE>
<CAPTION>
Net
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Large Cap Growth........... $ 535,014 $126,860 $ (5,994) $120,866
Sovereign Bond............. 730,568 14,606 (4,969) 9,637
International Equities..... 137,591 39,593 (2,992) 36,601
Small Cap Growth........... 27,815 5,372 (433) 4,939
International Balanced..... 23,285 2,307 (826) 1,481
Mid Cap Growth............. 24,203 3,351 (241) 3,110
Large Cap Value............ 38,848 4,607 (248) 4,359
Money Market............... 222,831 None None None
Mid Cap Value.............. 22,914 2,605 (455) 2,150
Special Opportunities...... 192,175 16,161 (2,414) 13,747
Real Estate Equity......... 140,579 34,899 (794) 34,105
Growth & Income............ 1,866,168 605,891 (17,312) 588,579
Managed.................... 2,331,112 295,285 (15,370) 279,915
Short-Term U.S. Government. 62,850 176 (552) (376)
Small Cap Value............ 18,702 2,576 (151) 2,425
International
Opportunities............. 24,300 3,420 (607) 2,813
Equity Index............... 46,647 6,653 (259) 6,394
Strategic Bond............. 17,729 294 (147) 147
</TABLE>
The aggregate cost of each Portfolio's Investments was substantially the
same for book and federal income tax purposes as of June 30, 1997.
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS
As of June 30, 1997 the Mid Cap Growth, International Balanced and Strategic
Bond Portfolios had open foreign currency contracts which contractually
obligate the Portfolio to deliver or receive currencies at a specified date,
as follows:
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
--------------------------------------------------- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
Pound Sterling....................... $200 07/24/97 $327 $333 $ (6)
Pound Sterling....................... 575 08/20/97 938 956 (18)
----
$(24)
====
</TABLE>
127
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--Continued
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
------------------------------------------------ ------ ------ --------------
<S> <C> <C> <C> <C> <C>
Australian Dollar............. $ 1,750 10/31/97 $1,368 $1,325 $ 43
Belgian Franc................. 14,900 10/31/97 423 418 5
Canadian Dollar............... 1,260 10/31/97 911 919 (8)
Deutsch Mark.................. 2,140 10/31/97 1,253 1,238 15
Danish Krone.................. 6,000 10/31/97 920 910 10
Spanish Peseta................ 52,000 10/31/97 358 354 4
Pound Sterling................ 660 10/31/97 1,069 1,095 (26)
Hong Kong Dollar.............. 1,150 10/31/97 148 148 0
Italian Lira.................. 290,000 10/31/97 172 170 2
Japanese Yen.................. 55,000 10/31/97 483 488 (5)
Netherlands Guilder........... 460 10/31/97 239 236 3
<CAPTION>
Currency Purchased
----------------------------------------
<S> <C> <C> <C> <C> <C>
Swiss Franc................... 1,000 10/31/97 693 695 2
Spanish Peseta................ 52,000 10/31/97 357 353 (4)
French Franc.................. 3,200 10/31/97 555 549 (6)
Japanese Yen.................. 483,000 10/31/97 3,916 4,289 373
Swedish Krona................. 2,300 10/31/97 297 299 2
----
$410
====
</TABLE>
STRATEGIC BOND PORTFOLIO
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
--------------------------------------------------- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
Australian Dollar................ $ 195 08/22/97 $153 $147 $ 6
Australian Dollar................ 560 08/22/97 421 423 (2)
Belgian Franc.................... 6,700 09/05/97 188 187 1
Canadian Dollar.................. 217 07/11/97 157 157 0
Canadian Dollar.................. 500 09/09/97 366 364 2
Deutsch Mark..................... 362 07/11/97 212 208 4
Deutsch Mark..................... 943 09/23/97 550 544 6
Deutsch Mark..................... 625 09/25/97 365 361 4
Spanish Peseta................... 13,800 07/11/97 95 94 1
Finnish Markka................... 1,100 07/17/97 214 213 1
Pound Sterling................... 235 09/05/97 382 390 (8)
Pound Sterling................... 455 09/05/97 737 756 (19)
Pound Sterling................... 185 09/05/97 304 307 (3)
Italian Lira..................... 992,000 07/11/97 585 583 2
Japanese Yen..................... 71,300 09/22/97 639 630 9
Swedish Krone.................... 2,000 09/05/97 257 259 (2)
<CAPTION>
Currency Purchased
-------------------------------------------
<S> <C> <C> <C> <C> <C>
Deutsch Mark..................... 362 07/11/97 212 208 (4)
----
$ (2)
====
</TABLE>
128
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
NOTE F--OTHER MATTERS
The amendment of (S)270.30d-1 under the Securities and Exchange Act of 1940,
titled "Reports to Stockholders of Management Companies," requires regulated
investment companies to report on all subject matters put to a vote of the
shareholders and provide final results. In adherence to this amendment, John
Hancock Variable Series Trust I, solicited a vote at a special
Contractowner/Policyholders meeting on April 14, 1997 on the following
matters:
<TABLE>
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C> <C>
FOR THE SMALL CAP GROWTH, INTERNATIONAL BALANCED, MID CAP
GROWTH, LARGE CAP VALUE, MID CAP VALUE, SMALL CAP VALUE,
INTERNATIONAL OPPORTUNITIES, EQUITY INDEX AND STRATEGIC
BOND PORTFOLIOS OF THE TRUST:
1. To approve the currently effective Management
Agreement between the Fund and John Hancock Mutual
Life Insurance Co. The resolution was adopted by, 89% 3% 8%
FOR ALL PORTFOLIOS OF THE TRUST:
2. To approve the amended Management Agreements that will
reallocate to the Fund certain expenses relating to
the operations and administration of the Fund. The
resolution was adopted by, 83% 6% 11%
FOR THE EQUITY INDEX PORTFOLIO OF THE TRUST:
3. To approve an amended Management Agreement that will
reduce the investment advisory fee, including approval
of a new Sub-Investment Management Agreement among the
Fund, John Hancock, and State Street Bank & Trust
Company, N.A. The resolution was adopted by, 83% 17%
FOR THE SHORT-TERM U.S. GOVERNMENT PORTFOLIO OF THE
TRUST:
4. To approve an amended Management Agreement that will
reduce the investment advisory fee. The resolution was
adopted by, 92% 1% 7%
FOR THE SOVEREIGN BOND PORTFOLIO OF THE TRUST:
5. To modify the investment restrictions to allow it to
purchase "when issued" securities and to enter into
forward commitments. The resolution was adopted by, 85% 3% 12%
FOR THE MONEY MARKET PORTFOLIO OF THE TRUST:
6. To change the status of the investment objective and
policies to make them generally non-fundamental. The
resolution was adopted by, 81% 7% 12%
FOR THE MANAGED PORTFOLIO OF THE TRUST:
7. To modify the investment restrictions to allow the
Portfolio to purchase securities issued under Rule
144A of the Securities Act of 1933. The resolution was
adopted by, 86% 3% 11%
</TABLE>
129
<PAGE>
OFFICERS AND TRUSTEES
Henry D. Shaw, Chairman
Thomas J. Lee, Vice Chairman and President
Laura L. Mangan, Secretary
Raymond F. Skiba, Treasurer
Sandra M. DaDalt, Assistant Secretary
Patrick F. Smith, Controller
Elizabeth Cook
William H. Dykstra
Joseph Kiebala, Jr.
Frank J. Zeo
INVESTMENT ADVISER
John Hancock Mutual Life Insurance Company
John Hancock Place
P.O. Box 111
Boston, Massachusetts 02117
SUB-INVESTMENT ADVISERS
Independence Investment Associates, Inc.
One Liberty Square
Boston, Massachusetts 02109
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
Rowe Price-Fleming International, Inc.
100 East Pratt Street
Baltimore, MD 21202
Neuberger & Berman, LLC.
605 Third Avenue
New York, NY 10158-3698
INVESCO Management & Research, Inc.
101 Federal Street
Boston, MA 02110
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199
J.P. Morgan Investment Management
522 Fifth Avenue
New York, NY 10036
Brinson Partners, Inc.
209 South La Salle Street
Chicago, IL 60604-1295
Janus Capital Corporation
100 Fillmore Street
Denver, CO 80206-4923
State Street Global Advisors
Two International Place
Boston, MA 02110
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
<PAGE>
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[LOGO OF JOHN HANCOCK APPEARS HERE]
The Variable Series Trust consists of 18 portfolios used to fund various John
Hancock variable life and variable annuity contracts. When used as sales
literature for these products, this report must be accompanied by the required
prospectus and the most current quarterly performance report for the contract
offered. Investors are not able to invest directly into the Variable Series
Trust.
Not all of the portfolios described in this report are available on every
product. Please refer to the prospectus for additional information about the
investment options on your variable product.
John Hancock Mutual Life Insurance Company
John Hancock Distributors, Inc., Member NASD
John Hancock Variable Life Insurance Company (not licensed in New York)
www.jhancock.com
- --------------------------------------------------------------------------------
