<PAGE>
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December 31, 1996
[ARTWORK APPEARS AS BACKGROUND ON ENTIRE PAGE]
Changing Needs. Expanded Choices
A N N U A L R E P O R T
[LOGO JOHN HANCOCK APPEARS HERE]
[LOGO OF BRINSON PARTNERS INC.
APPEARS HERE]
[LOGO OF INVESCO APPEARS HERE]
[LOGO OF JP MORGAN APPEARS HERE]
[LOGO OF JANUS FUND APPEARS HERE]
[LOGO OF NEUBERGER & BERMAN, LLC
APPEARS HERE]
[LOGO OF T. ROWE PRICE APPEARS HERE]
INSURANCE FOR THE UNEXPECTED [LOGO OF VARIABLE SERIES TRUST
INVESTMENT FOR THE OPPORTUNITIES APPEARS HERE]
[LOGO OF JOHN HANCOCK APPEARS HERE]
- --------------------------------------------------------------------------------
<PAGE>
December 31, 1996
Dear Contract Owner:
Economic activity in 1996 has been unusually stable by
historical standards, despite the burst of activity in [PICTURE OF
the second quarter. And, at the conclusion of 1996, we THOMAS J. LEE,
have reached a point at which, after an unprecedented PRESIDENT AND
run-up in the domestic equity market, many investors VICE CHAIRMAN
are wondering how much longer it can last. At the same APPEARS HERE]
time, some of these same investors are wondering why it
shouldn't last based on current economic fundamentals.
Many investment experts argue that consistently timing the market with anything
close to absolute certainty is extremely difficult -- perhaps impossible. For
the individual investor, it may be more useful to have a thorough understanding
of their own "investment personality" -- including investment time horizon and
risk tolerance. These two factors are the linchpins of a sound asset allocation
strategy.
Numerous academic studies have identified asset allocation as the most important
factor affecting investment returns. In a 1991 study of institutional pension
plans conducted by Brinson, Singer and Beebower, asset allocation (the choice
and weighting of asset classes) accounted for nearly 92% of investment returns.
Market timing and security selection and all other factors contributed only 8%
of the returns. These findings help to reinforce the importance of asset
allocation to any investor -- large or small.
While variable life insurance and variable annuities are generally considered
longer-term products, it makes sense for John Hancock customers to periodically
review their overall asset allocation as well as the performance of particular
investments. This Annual Report as well as other statements you receive from
John Hancock are important sources of performance information which you can use
to manage the investment strategy or your variable life and/or annuity products
on an on-going basis.
The Variable Series Trust (VST), which serves as the
investment mechanism for John Hancock's variable
[PICTURE OF products, offers an exciting array of investment choices
HENRY D. SHAW, from domestic and international equities to fixed income
CHAIRMAN portfolios. All of the portfolios offered through the
APPEARS HERE] VST are managed by the nation's leading investment
management companies.
As always, your Registered Representative is available to help you understand
the performance track record of each portfolio and to assist you in creating an
asset allocation strategy that makes sense for you.
Sincerely,
/s/ Henry D Shaw /s/ Thomas J. Lee
Henry D. Shaw Thomas J. Lee
Chairman President and Vice Chairman
<PAGE>
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ECONOMIC OVERVIEW--1996: YEAR-END REVIEW
- --------------------------------------------------------------------------------
JOHN HANCOCK ECONOMIC RESEARCH
1996 saw a serendipitous blend of a moderately expanding economy, rising
employment and steady inflation. While the economy grew in fits and starts from
quarter to quarter, overall growth for the year was a heady 3%, following an
anemic 1.3% in 1995. Economic growth was led by consumer spending for durable
goods such as refrigerators and sofas, and business expenditure for plant and
equipment, especially computers and telecommunications gear. Spending by
federal and local governments changed little, and the trade deficit worsened
during the year. 1996 ended with the economy appearing to shift into a higher
gear, although, at six years, the sheer age of the current expansion could
limit 1997's performance.
The economy in 1996 was characterized by two underlying trends: consumers took
on a mountain of debt, and inflation barely budged all year long. Buoyed by low
interest rates, rising wages, pent-up demand, and an onslaught of credit
promotions, consumers spent the first half of 1996 piling up debt buying all
those refrigerators and sofas. The remainder of 1996 saw them digging out from
under the heavy load, which restrained spending during the holiday retail
season. Many feel that consumers will be forced to cut back their spending in
the first half of 1997.
The other underlying trend was that prices remained very well behaved, except
for rising oil and food prices. Consumer prices rose about 3% in 1996. And,
there do not appear to be any inflationary pressures currently in the pipeline,
as food prices have retreated and oil prices are expected to fall in 1997. What
was remarkable about 1996 was that prices were quiescent as the economy grew
strongly and unemployment fell to very low levels, two ingredients for rising
inflation.
Strong growth tends to put upward pressure on prices as demand exceeds supply.
However, continued strong investment and foreign imports (helped by a strong
dollar) have kept supply conditions flexible. At the same time, the low
unemployment rate (5.2% as of the end of 1996) has yet to jack up wage rates in
large part because downsized workers have returned to the workforce and workers
are more concerned about keeping their job than raises. As a result there has
been little upward pressure on wage rates, although some fear that this trend
will reverse itself in 1997.
Despite expectations to the contrary, the Fed sat on its hands throughout the
second half of 1996, with no change in interest rates. There was no need.
Inflation remained benign and fluctuating market interest rates kept the
economy in balance whenever it appeared to shift out of kilter. Looking back,
it appears that the Fed had got monetary policy just about right: not too tight
and not too loose. However, as 1997 began, the odds of an interest rate hike
were rising.
Internationally, the US dollar strengthened, benefiting from declining overseas
interest rates, as the industrialized economies in Europe and Asia remained
weak. Continental Europe, preoccupied with the European Monetary Union (EMU)
and the movement toward a single European currency, pursued low interest rate
policies to get their economies going. In contrast, Japan had to contend with
an economy that was unresponsive to continued low interest rates and massive
increases in government spending. As a result, money flowed into the US in
search of higher returns, which helped to finance a deteriorating American
deficit, push the dollar higher, and positively effect US interest rates.
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
JOHN HANCOCK PETER MITSOPOULOS
- --------------------------------------------------------------------------------
The second half of 1996 continued the trend of the first half of the year:
moderate growth in the economy with low and stable inflation. The latter half
of the year was characterized by continual "Fed watching" as every new and
revised piece of economic data sent the markets into speculation of a short-
term rate increase. Near the end of the year, analysts and investors finally
breathed easier as it became evident that an interest rate increase was not
going to happen in 1996. Among the many factors that contributed to this change
in expectation were high consumer debt burdens, a highly competitive retail
sales environment and value-conscious consumers. These and other factors helped
hold down prices and stave off, at least for now, the threat of inflationary
tendencies.
Our forecast at the beginning of 1996, expecting relative economic and
interest rate stability, was virtually on target although not without bumps
along the way. As predicted, yields on the Portfolio fell over the course of
the year, ending with a 12-month average net yield of 5.32% versus 5.78% a year
earlier. The Portfolio's monthly average maturity for 1996 of 43 days was
slightly short of our target of 50 days. The Money Market Portfolio's maturity
structure and composition were marginally impacted by issues such as portfolio
size, investor cash flow and availability of suitable investments.
For 1997, economic forecasts indicate continued modest growth trends with
inflation forecasts hovering around 3.0% to 3.5%. There are mixed opinions on
the likelihood of a short-term interest rate hike by the Fed early in the year.
One critical factor everyone will be looking at will be the unemployment rate.
It has remained at a low level for quite some time and economists and others
are speculating whether a permanent shift has taken place with respect to its
relationship to inflation. As the year unfolds, we will adjust our outlook and
strategy accordingly in order to provide the best returns possible while
maintaining stability of principal.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
PHH Group, Inc. 5.1% N/A
Twin Towers Inc. 4.9% 2.3%
Sigma Finance Inc. 4.7% 3.7%
Receivables Capital Corp. 4.5% 3.9%
Merrill Lynch & Co., Inc. 4.4% N/A
Falcon Asset Securitization 4.4% N/A
Sumitomo Corp. of America 4.4% 1.0%
Monte Rosa Capital Corp. 4.2% N/A
Lehman Brothers Holdings, Inc. 4.2% 4.6%
National Bank of Canada 4.2% N/A
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
Average Annual Total Returns/*/
- -----------------------------------------------------------------
Money Market
Portfolio
------------
<S> <C>
1 Year 5.32%
5 Years 4.35%
10 Years 5.93%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
----------------------------------------------------------------
% of six months ago
investments % of investment
<S> <C> <C>
Financial Services 63.4% 52.1%
Foreign 9.9% 13.6%
Food, Beverage and Tobacco 6.3% 6.5%
Banks and Finance 6.2% N/A
Retail 4.7% N/A
- -------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
Money Market Portfolio is neither insured nor guaranteed by the U.S.
Government and there is no guarantee the fund will be able to maintain a
stable value of $10.00/share.
/*/ Total returns are for the period ending December 31, 1996. Returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance.
The performance of the portfolio on the page is reported net of Trust level
changes (i.e. investment management fees and operating expenses). It does
not reflect expenses and changes of the applicable separate accounting and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
2
<PAGE>
INCEPTION: MAY 1, 1994
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SHORT-TERM U.S. GOVERNMENT PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. TOM SPICER
- --------------------------------------------------------------------------------
Quite simply, "yield" was the dominant theme in the fixed income markets
during 1996. Nearly every "spread sector" outperformed the Treasury market
adjusting for duration differences. US Agency securities were among this group,
outperforming their Treasury counterparts by an average 21 basis points. The
Short-Term US Government portfolio benefited by having an over-weighting in
this sector. At year end the fund had 59.8% in Agencies versus 17% for the
benchmark. We believe that Agency paper currently offers incremental yield
without much additional risk as to the certainty of payment.
When compared to previous years, the 1996 interest rate movements were
relatively subdued. The portfolio remained duration neutral to its benchmark,
the Merrill Lynch 1-5 U.S. Government Bond Index, throughout the period. Our
yield curve model indicated a "bulleted" position for the majority of the year.
This resulted in an over-weighting in intermediate term securities in the
portfolio. This strategy did contribute positive performance, however, the
contribution was small.
At year end, the Short-Term US Government Portfolio had a net return of 3.61%,
(doing slightly better than the portfolio's benchmark on a gross basis). For
comparison, this was during a time period when representative broad market
fixed income indices were reporting returns of only 3.60%. Looking forward, we
expect interest volatility to remain low and for yield sectors to continue to
perform well. Precluding any major market developments, the fund will maintain
its over-weighted position in the Agency sector with the yield enhancing
quality it has to offer as well as its duration neutrality.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Treasury 37.9% 34.2%
Federal National Mortgage Assoc. 17.8% 17.4%
Federal Home Loan Bank 12.8% 5.6%
Federal Farm Credit Banks 10.7% 12.2%
Private Export Funding Co. 8.9% 15.0%
State of Israel-AID 4.0% 5.1%
Federal Home Loan Mortgage Corp. 3.3% 7.5%
State of Israel-AID Ser. 6-A 2.1% 5.1%
International Bank of Reconstruc-
tion & Development 0.2% 0.4%
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-Term U.S. Merrill Lynch 1-5 MorningStar
Government Portfolio US Govt. Bond Index Peer Group+
-------------------- ------------------- -----------
<S> <C> <C> <C>
1 Year 3.61% 4.47% 2.35%
Since Inception 5.68% 6.77% N/A
5 Years N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
Top Industries (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Government Agencies 59.8% 63.3%
U.S. Treasuries 37.9% 34.2%
- -------------------------------------------------------------------------
</TABLE>
*Total returns are for the period ending December 31, 1996. 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
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.
+Source: MorningStar, Inc. Data as of 12/31/96. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
3
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO (FORMERLY BOND)
JOHN HANCOCK ADVISERS, INC. JIM HO
- --------------------------------------------------------------------------------
For the 12 months ending December 31, 1996, Sovereign Bond Portfolio returned
4.10% (net of fees). We overweighted the various spread sectors including
corporate bonds, Yankee bonds, asset-backed and mortgage-backed securities. We
benefited from spread tightening in these sectors. In the beginning of the 4th
quarter, corporate spreads widened due to the excessive supply of new issues.
Corporate bond issuance volume neared $405 billion (close to 1993's record
level of $416 billion). Recognizing that this spread widening resulted from
technical conditions and not a general deterioration of credit conditions, we
added to our corporate holdings. This strategy added value as corporate bonds
tightened in December.
We benefited from strong performance of bank capital securities as they
demonstrated dramatic spread tightening following their introduction to the
market. Yankee bonds, specifically corporate issues from some of the world's
emerging market countries, demonstrated excellent price performance. The
Portfolio's asset-backed securities--those backed by home equity and home
improvement loans--also registered solid gains.
We entered the fourth quarter with an effective duration slightly short of the
benchmark. Following the Fed's decision in October to keep monetary policy
unchanged, we extended the duration to neutral to slightly longer than the
benchmark. This enabled the Portfolio to capture the full benefit of the
market's strong directional move. We will shorten the Portfolio's duration
relative to the benchmark in early 1997 as we anticipate the typical late
business cycle rate pressures and the higher probability of a Fed tightening.
We continue to look for opportunities in the spread sectors and will look for
opportunities to upgrade overall credit quality as we approach the business
cycle peak.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
U.S Treasury 17.4% 23.5%
Governmental National Mortgage Assoc. 2.8% 4.0%
MBNA Master Credit Card Trust 2.4% 2.4%
Federal Home Loan Mortgage Corp. 2.1% 1.8%
Hydro-Quebec 1.8% 1.8%
American Express Credit Corp. 1.8% 1.8%
Commercial Credit Group, Inc. 1.7% 1.8%
Texaco Capital, Inc. 1.6% 1.6%
Texas New Mexico Power Co. 1.5% 1.6%
Coastal Corp. 1.5% 1.5%
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Sovereign Bond LB Govt./Corp MorningStar
Portfolio Bond Index Peer Group+
---------------- ------------- -----------
<S> <C> <C> <C>
1 Year 4.10% 2.91% 2.91%
5 Years 7.85% 7.65% 5.86%
10 Years 8.50% 8.38% N/A
</TABLE>
- --------------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Financial Services 18.0% 18.0%
U.S. Governmental 17.4% 23.5%
Foreign 10.5% 12.1%
Utilities - Electric 8.9% 9.6%
Government Agencies 5.2% 6.5%
</TABLE>
*Total returns are for the period ending December 31, 1996, 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
changes (i.e. investment management fees and operating expenses). It 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 prospectus.
+Source: MorningStar, Inc. Data as of 12/31/96. 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 Chris Durbin & Lili Dung
- --------------------------------------------------------------------------------
During the fourth quarter of 1996, the global fixed-income markets continued
the rally that started during the summer. The key drivers remain weaker-than-
expected growth, diminishing inflationary pressure, and the continued high
level of global liquidity that resulted from market-supportive monetary policy
in many countries, especially Japan.
The Portfolio outperformed the index during the fourth quarter. Since
inception, the portfolio lagged the index slightly net of fees. The Portfolio
maintained an overweighted position in Europe and an underweight position in
Japan. Within the North American bloc (including Australia), the portfolio has
moved around a neutral duration position, with a bias toward overweighting
Canada and Australia. Country allocation has been positive given the relative
outperformance of Europe, Canada and Australia, especially during the fourth
quarter, but also since inception. Within the U.S., sector and security
decisions contributed most to the outperformance. The strategy of overweighting
corporate bonds and mortgage backed securities, relative to Treasuries, worked
very well as spreads on these sectors narrowed throughout the year. Maintaining
the maximum allocation of 10% to high-yield, below-investment grade securities
also added to performance as this sector saw dramatic returns over the year.
The neutral duration position did not have much impact during the second half
of the year. Within Europe, investments were concentrated in core markets
during the first part of the year given the yield advantage relative to the US
on a hedged basis. During the third quarter, we moved to favor the higher
yielding markets of Italy, Spain, and Sweden, as these countries continued to
make significant progress toward meeting the Maastricht requirements. The
overweight of the high yielders worked well as spreads continued to narrow in
Germany throughout the year.
We are comfortable with the current positions going into 1997. The greatest
immediate risk is a return to strong growth in the US, which would renew
expectations for tightening by the Federal Reserve, and could cause a sell-off
in the global bond markets. At present, we are in a short duration in the US, a
position which is partly offset by long positions in Canada and Australia. The
outlook in Japan remains uncertain. In Europe, weak conditions going into 1997
hold the promise of further rate declines across the curve, and we continue to
favor the higher yielding markets.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Government National Mortgage Assoc. 15.1% 15.4%
Federal National Mortgage Assoc. 7.6% 5.2%
Republic of Italy 6.1% 5.0%
U.S. Treasury 5.1% 17.7%
Midland Bank plc 4.1% 4.1%
National Rural Utilities 4.1% N/A
First Plus Home Loan Trust 4.0% 4.1%
Government of Spain 4.0% N/A
Province of Quebec 3.9% 3.9%
Keycorp 3.9% N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Total Returns -- for 8 months ending 12/31/96*
-----------------------------------------------------------------------
Strategic Bond Strategic Bond
Portfolio Composite Index**
-------------- -----------------
<S> <C> <C>
Since Inception 6.71% 7.03%
1 Year N/A N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Foreign Governmental 30.6% 20.3%
Government Agencies 22.7% 20.6%
Financial Services 9.8% 13.0%
Banks and Finance 8.0% 4.1%
Utilities - Electric 7.2% N/A
- -------------------------------------------------------------------------
</TABLE>
* Total returns are for the period ending December 31, 1996. 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.
** Strategic Bond Composite Index: 75% Lehman Brothers Aggregate Bond and 25%
J.P. Morgan Non-US Government Bond Index, Hedged.
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.
5
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. SAM OTIS
- --------------------------------------------------------------------------------
While the bond portion of the Managed Portfolio generated only nominal gains
as interest rates rose slightly, the overall account scored a net gain of
10.72% for the year.
Several stocks in the equity portion of the Portfolio helped boost 4th quarter
performance including: Panenergy, American Express, Dean Witter Discover, Avery
Dennison, Bristol Myers, Cigna and Boeing. Major holdings going forward include
AT&T, Intel, Johnson & Johnson, Merck, IBM and General Electric. All of these
companies are currently exhibiting "cheapness and improving fundamentals". In
terms of this Portfolio's industry bets, the valuation models point to superior
opportunity in five key industries whose outlooks are above average due to
their sustainable earnings. They include: Aerospace, Health Related, Insurance,
Specialty Retail and certain Specialty Chemical companies.
In the bond portion of the Portfolio, your management is carrying an
overweighting in Corporates, Mortgages and Asset-Backed securities all of which
generate higher income than Government Bonds. The quality of the bond account
is high with an overweighting in 5 to 10 year maturities. At the present time,
the bond portion of the account is "duration neutral"; meaning, its volatility
is close to that of the overall bond market as measured by the Lehman Brothers
Government/Corporate Bond Index. Given the extreme outperformance of the equity
market in the past year, the portfolio is now holding slightly more bonds than
equities with the expectation that the stock market could disappoint later in
1997.
[GRAPH APPEARS HERE]
Top Ten Holdings (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Treasury 20.8% 20.2%
Federal National Mortgage Assoc. 4.4% 5.0%
Government National Mortgage Assoc. 3.0% 3.3%
BankAmerica Corp. 1.6% 1.5%
IBM Corp. 1.6% 0.5%
Phllip Morris Cos., Inc. 1.5% 1.6%
General Electric Co. 1.4% 1.6%
Atlantic Richfield Co. 1.4% 0.6%
AT&T Corp. 1.4% 1.5%
Ford Motor Co. 1.2% 1.2%
</TABLE>
Average Annual Total Returns/*/
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Managed Managed MorningStar
Portfolio Composite Index** Peer Group+
--------- ----------------- -----------
<S> <C> <C> <C>
1 Year 10.72% 12.69% 11.14%
5 Years 10.57% 11.20% 8.14%
10 Years 11.70% 12.06% N/A
</TABLE>
Top Five Industries (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Governmental 20.8% 20.2%
Banks and Finance 8.8% 8.0%
Government Agencies 7.9% 9.1%
Financial Services 7.5% 8.7%
Oils and Natural Gas Exploration
and Production 5.5% 5.8%
</TABLE>
*Total returns are for the period ending December 31, 1996. 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
changes (i.e. investment management fees and operating expenses). It 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 prospectus.
**Managed Composite Index: 50% S&P 500 and 50% Lehman Brothers Govt./Corp. Bond
Index.
+Source: MorningStar, Inc. Data as of 12/31/96. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
6
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO (FORMERLY STOCK)
INDEPENDENCE INVESTMENT ASSOCIATES, INC. SAM OTIS
- --------------------------------------------------------------------------------
The Growth & Income Portfolio underperformed the S&P 500 for the fourth
quarter of 1996 returning net of all expenses 7.46% versus the market's 8.37%.
The fourth quarter was interesting for its volatility, selling off hard in the
first two weeks of December then reversing sharply for a spirited year-end
rally. Late in the cycle, with valuations such as dividend yield and price to
earnings ratios flashing an "overbought", performance has proven harder to
capture. Relatively few large cap stocks have accounted for the lion's share of
the overall market performance which often reflects an overbought market.
It is gratifying to experience 1996 equity returns of 20.10% (net of all
expenses). Good performing stocks in the Portfolio which boosted the 4th
quarter performance included: Panenergy, British Telecommunications, Dean
Witter Discover, Avery Dennison, Bristol Myers, Cigna and IBM. Major holdings
going forward include AT&T, Intel, Johnson & Johnson, Merck, IBM and General
Electric. All of these companies are currently exhibiting "cheapness and
improving fundamentals". In terms of this Portfolio's industry bets, the
valuation models point to superior opportunity in four key industries whose
outlooks are above average due to their sustainable earnings. They include
Aerospace, Health Related, Insurance and certain Specialty Chemical companies.
We believe that although the economy will continue to grow in 1997, growth
will slow modestly. The opportunity for productivity gains that have helped
propel earnings growth during the past several years is waning. Moreover,
sluggish growth abroad, a strong dollar, and an eight-year high trade deficit
all threaten to hamper domestic profitability. Corporate earnings are expected
to grow moderately in 1997, and all eyes will be on the Fed which has not
changed rates since January of 1996.
Historical Performance Return
[GRAPH APPEARS HERE]
$10,000
Investment made 1/1/87
(10-Year Period)
- -------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
General Electric Co. 3.3% 3.3%
AT&T Corp. 3.1% 4.3%
Atlantic Richfield Co. 2.5% 0.3%
IBM Corp. 2.2% 0.9%
Intel Corp. 2.1% 1.3%
Johnson & Johnson 2.0% 1.7%
Merck & Co., Inc. 1.9% 1.6%
United Technologies Corp. 1.8% 1.1%
E.I. Du Pont De Nemours & Co. 1.8% N/A
Philip Morris Cos., Inc. 1.8% 1.8%
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Total Returns *
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Income S&P 500 MorningStar
Portfolio Index Peer Group+
---------------------- --------- -----------
<S> <C> <C> <C>
1 Year 20.10% 23.07% 16.25%
5 Years 14.60% 15.20% 12.06%
10 Years 14.91% 15.28% N/A
</TABLE>
- --------------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 11.0% 9.5%
Oils and Natural Gas Exploration
and Production 10.5% 10.3%
Electronic and Processing Equipment 7.6% 7.3%
Retail 7.5% 4.8%
Chemicals 6.7% 4.9%
</TABLE>
*Total returns are for the period ending December 31, 1996. 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
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.
+Source: MorningStar, Inc. Data as of 12/31/96. 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
- --------------------------------------------------------------------------------
Despite poor returns from many traditional yield vehicles, your Large Cap
Value Portfolio performed reasonably well due to the continued strength of
companies in the financial (Chase Manhattan, American Express), health care
(Warner-Lambert, Eli Lilly), and energy (Exxon, Texaco) sectors. Our approach
is to purchase holdings when, for various reasons, they become out of favor and
inexpensive on a relative valuation basis. We often make investment decisions
based on the tendency of a company's fundamentals and stock price to regress
within historical ranges, and for investor perceptions about the relative
values of these stocks to improve over the intermediate term. This was clearly
the case in 1996 with respect to some of the companies mentioned above.
During the second half of the year, despite a market that had advanced
sharply, we were able to find opportunities in companies with higher-than-
average dividend yields, limited risk, and attractive return potential. In many
cases, investments that interest us often involve stocks that have suffered
relative to the broad market for various reasons. Controversy and
underperformance often create opportunities that we hope to exploit profitably
on your behalf. We recently initiated new positions in AT&T, ALLTEL,
International Flavors & Fragrances, ITT, and Whirlpool, all fine companies that
have struggled recently due to negative fundamental trends affecting their
businesses, negative investor views of their prospects, or some combination of
these factors.
Over the last few years, stock prices have appreciated at a much faster rate
than the earnings and dividends of the underlying companies. Because of this
"delinkage", we expect more subdued equity performance in 1997. The year ahead
may not live up to many investors' high expectations for a continuation of
recent trends. Notwithstanding this cautionary tone, we continue to believe we
will find interesting investment opportunities during the year.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
U.S. Treasury 2.5% 4.6%
General Electric Co. 1.8% 1.8%
Exxon Corp. 1.6% 1.5%
Mellon Bank Corp. 1.5% 1.3%
Chase Manhattan Corp. 1.5% 1.3%
Atlantic Richfield Co. 1.4% 1.6%
Simon Debartolo Group, Inc. 1.3% N/A
AT&T Corp. 1.3% N/A
General Mills, Inc. 1.3% 1.2%
Warner Lambert Co. 1.2% 1.0%
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Total Returns -- for 8 months ending 12/31/96*
-----------------------------------------------------------------------
Large Cap Russell 1000
Value Portfolio Value Index
--------------- ------------
<S> <C> <C>
Since Inception 13.90% 14.68%
1 Year N/A N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
-----------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Oils and Natural Gas Exploration
and Production 10.0% 9.6%
Banks and Finance 9.7% 9.2%
Health Products and Services 7.0% 7.6%
Food, Beverage and Tobacco 6.8% 8.0%
Utilities - Telecommunications 6.7% 5.5%
- -------------------------------------------------------------------------
</TABLE>
* Total returns are for the period ending December 31, 1996. 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
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.
8
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO (FORMERLY SELECT STOCK)
INDEPENDENCE INVESTMENT ASSOCIATES, INC. MICHAEL G. TROTSKY
- --------------------------------------------------------------------------------
The Large Cap Growth Portfolio was retargeted during the 2nd and 3rd quarters
of 1996 and is now benchmarked to the Frank Russell 1000 Growth Index. The
Large Cap Growth Portfolio modestly outperformed its benchmark for the fourth
quarter. More importantly, the portfolio outperformed its benchmark in each
month of the fourth quarter. The best performing stocks in the portfolio
included technology issues such as Intel, Dell Computer, Microsoft, and Compaq
as well as healthcare stocks like Smithkline, Merck, and Bristol Myers. Major
holdings going forward include AT&T, Intel, Johnson & Johnson, Merck, and
General Electric. All of these companies are currently exhibiting "cheapness
and improving fundamentals".
While the performance for the fourth quarter was in line with expectations,
the 1996 full-year return of 18.27% (net of fees) lagged its benchmark. The
underperformance was mainly a result of significant turnover that we incurred
while bringing the characteristics of the Portfolio in line with its new
benchmark. The retargeting of the Portfolio required several trading programs
in the 3rd Quarter which reduced exposures in utilities and oil stocks and
increased exposure in technology and healthcare stocks. Since large cap growth
stocks outperformed the market in the first three quarters of 1996, not having
the full growth exposure during the first three quarters adversely affected the
full year performance comparisons. However, we are encouraged with the fourth
quarter outperformance and believe that the Portfolio is now fully retargeted
to the new benchmark and in optimal shape for 1997.
Historical Portfolio Return
[GRAPH APPEARS HERE]
$10,000
Investment made 1/1/87
(10-Year Period)
Top Ten Holdings (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
AT&T Corp. 4.7% 4.5%
Intel Corp. 4.3% 2.0%
Johnson & Johnson 3.3% 2.5%
Merck & Co., Inc. 2.7% 1.9%
Gillette Co. 2.7% N/A
United Technologies Corp. 2.6% 0.6%
Microsoft Corp. 2.6% 2.5%
General Electric Co. 2.5% 3.6%
Home Depot, Inc. 2.3% 2.5%
Abbott Laboratories 2.2% 2.5%
</TABLE>
Average Annual Total Returns*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Growth Large Cap MorningStar
Portfolio Growth(1) Index Peer Group+
-------------- -------------- --------------
<S> <C> <C> <C>
1 Year 18.27% 21.73% 16.25%
5 Years 14.02% 14.99% 12.06%
10 Years 15.29% 15.17% N/A
</TABLE>
Top Five Industries (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 19.8% 17.3%
Retail 10.9% 10.3%
Electronic and Processing Equipment 10.6% 10.4%
Chemicals 6.4% 3.4%
Utilities - Telecommunications 5.1% 6.1%
</TABLE>
(1) The index is represented by the S&P 500 for the period April 1986 and the
Russell Large Cap Growth Index for the period May 1996 to December 1996.
*Total returns are for the period ending December 31, 1996. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
funds shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
The perfomance 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.
+Source: MorningStar, Inc. Data as of 12/31/96. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
9
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. MICHAEL G. TROTSKY
- --------------------------------------------------------------------------------
The Equity Index Portfolio is a passively managed equity portfolio designed
to closely match the S&P 500 Stock Index. in terms of risk and expected
return. The Portfolio is managed by investing in a subset of stocks contained
within the Index which is optimized to closely match the characteristics,
diversification and performance of the overall Index. The Portfolio currently
invests in over 350 stocks. Major holdings in the Equity Index Portfolio
closely match those in the S&P 500 Index and there are no significant industry
or sector deviations.
It is not unusual for a start-up portfolio of this kind to exhibit some
variability relative to the Index due to the small initial size of the
portfolio and due to cash flows which need to be invested quickly. The
"portfolio optimization" technique typically exhibits long term investment
performance of approximately +/-0.30% relative to the S&P 500 Index. However,
in the short time since this Portfolio's inception, the Portfolio's returns
have been negatively affected by the size of cash flows relative to the size
of the Portfolio and the equity market's volatility during this period.
As a consequence, John Hancock decided to waive all fees charged to the
Portfolio for 1996 and for an as yet undetermined period in 1997. A capital
contribution of $84,000 (which includes a reimbursement of the fees for 1996)
was made into the Portfolio on December 31, 1996. Including the capital
contribution, the Portfolio had a net return of 14.23%+ versus 15.04% for the
S&P 500 Index (for the eight months since the Portfolio's inception). As the
Portfolio gets larger, we expect that investment returns will more closely
match those of the S&P 500 Index.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
General Electric Co. 2.7% 2.7%
Coca-Cola Co. 2.3% 2.3%
Exxon Corp. 2.1% 2.0%
Intel Corp. 1.8% 1.1%
Microsoft Corp. 1.7% 1.3%
Merck & Co., Inc. 1.6% 1.5%
Royal Dutch Petroleum Co. 1.5% 1.7%
Philip Morris Cos., Inc. 1.4% 1.4%
IBM Corp. 1.3% 1.1%
Proctor & Gamble Co. 1.2% 1.1%
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Total Returns -- for 8 months ending 12/31/96*
- -------------------------------------------------------------------------
Equity Index S & P 500
Portfolio Index
-------------- -----------
<S> <C>
Since Inception 14.23%+ 15.04%
1 Year N/A N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
-----------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 9.8% 8.4%
Electronic and Processing Equipment 9.4% 6.7%
Oils and Natural Gas Exploration
and Production 8.6% 8.6%
Food, Beverage and Tobacco 7.5% 8.1%
Banks and Finance 7.0% 6.7%
- -------------------------------------------------------------------------
</TABLE>
+ The net return without the capital contribution would have been 13.59%.
* Total returns are for the period ending December 31, 1996. 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.
* "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
makes no representation regarding the advisability of investing in the
product.
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.
10
<PAGE>
INCEPTION: MAY 16, 1988
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. DALTON AVERY
- --------------------------------------------------------------------------------
The Real Estate Investment Trusts (REITs) Market strengthened in July when the
overall stock market weakened. At that point, many investors sought a less
volatile haven and REITs, with their high yields and modest valuations,
provided that safety.
A surge of new money came into the dedicated real estate funds in the third
quarter and the flow of funds accelerated in the fourth quarter. The REIT
indices showed a very nice total return in the 6% range in the third quarter
and ramped up to an 18% total return in the fourth quarter. That second half
performance propelled the REIT group to a 35-36% return for the year. At the
beginning of 1996 we estimated a total return in 1996 for the REIT group and
for the portfolio of 13-15%. This estimate was based on a "going in yield" of
7% plus annual growth of 6-8%. The actual returns were more than twice the
estimate due to a multiple expansion.
All of the REIT industry sectors showed total returns in 1996 in excess of 23%
except the small factory outlet store sector. Hotel REITs led the group (as
they did in 1995) with a 49% total return with the office and industrial REIT
sectors close behind. The Real Estate Equity Portfolio was underweighted in
hotel REITs compared to the benchmark and that was the main reason that the
Portfolio lagged its benchmark for the year. Despite that, the Real Estate has
outperformed the broad equities market (as represented by the S&P 500) in four
of the last five years.
Historical Portfolio Return
[GRAPH APPEARS HERE]
$10,000
Investment made 5/16/88
(Portfolio Inception Date)
Value on 12/31/96;
- ------------------
$24,720 Real Estate Equity Portfolio
$17,520 Wilshire Real Estate Index
Top Ten Holdings (as of December
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Host Marriott Corp. 3.6% 2.5%
Simon DeBartolo Group, Inc. 3.2% N/A
Patriot American Hospitality, Inc. 3.2% 2.6%
Liberty Property Trust 3.1% 3.1%
Carr Realty Corp. 2.9% 2.7%
Developers Diversified Realty Corp. 2.7% 3.1%
Sun Communities, Inc. 2.6% 3.1%
Storage USA, Inc. 2.6% 2.8%
Post Properties, Inc. 2.5% 2.9%
BRE Properties, Inc. 2.5% 2.9%
</TABLE>
Average Annual Total Returns/*/
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Real Estate Equity Wilshire Real
Portfolio Estate Index
------------------ -------------
<S> <C> <C>
1 Year 33.07% 36.87%
5 Years 15.89% 14.36%
Since Inception 11.05% 6.68%
</TABLE>
Top Five Industries (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Real Estate Investment Trust 87.4% 88.8%
Real Estate Development 5.5% 6.3%
Lodging & Restaurants 3.8% 2.5%
</TABLE>
*Total returns are for the period ending December 31, 1996. 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
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.
11
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
MID CAP VALUE
NEUBERGER & BERMAN, LLC M. KASSEN & R. GENDELMAN
- --------------------------------------------------------------------------------
The Mid Cap Value Portfolio achieved a total return (net of management and
operating expenses) of 10.48% in the fourth quarter; 15.09% for the last six
months; and 16.18% since inception. We are pleased to say that your Portfolio
has significantly outperformed the Russell Mid Cap Value index by a margin of
1.86% in the fourth quarter; 3.35% for the last six months; and 3.25% since
inception
Over the last six months we have been able to add significant value to this
Portfolio through either underweighting or overweighting in the right sectors.
In the 2nd and 3rd quarters, our under weighting in Utilities and over
weighting in Materials and Processing helped us to out-perform the benchmark by
140 basis points. In the 4th quarter we overweighted the Technology sector--
which performed very well.
Over the course of the last quarter we purchased over 20 securities that we
anticipate will add value and enhance performance. Two outstanding performers
we purchased this quarter were Allegiance Corp. and CVS Corp. which appreciated
17.13% and 27.62% respectively. We found superior investment opportunities this
quarter in the Technology, Energy and Financial sectors with winners such as
KLA Instruments Corp. (up 62.73%), Tejas Gas Corp. (up 33.26%) and First USA
(up 25.30%).
As we enter 1997 our outlook is cautious as stocks continue to climb to new
highs. With inflationary concerns seemingly under control our focus will be to
identify companies whose fundamentals are strong or improving, but whose stock
performance has suffered. We anticipate that the sectors that have fueled the
1996 run (technology, energy and financials) will continue to provide value in
1997.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Price/Costco, Inc. 2.8% 2.3%
Wells Fargo & Co. 2.2% 1.7%
Comcast Corp.-Cl.A 1.9% 2.7%
Sabre Group Holdings, Inc. 1.9% N/A
Seagate Technology, Inc. 1.8% 2.1%
USG Corp. 1.8% 1.8%
Exel, Ltd. 1.8% 1.2%
Columbia/HCA Healthcare Corp. 1.8% 2.1%
Mirage Resorts, Inc. 1.7% N/A
Texas Instruments, Inc. 1.7% 1.6%
</TABLE>
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Total Returns -- for 8 months ending 12/31/96*
-----------------------------------------------------------------------
Mid Cap Value Russell Mid Cap
Portfolio Value Index
------------- -----------
<S> <C> <C>
Since Inception 16.18% 12.93%
1 Year N/A N/A
</TABLE>
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top Five Industries (as of December 31, 1996)
-----------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Media 7.9% 6.1%
Electronic and
Processing Equipment 7.8% 5.7%
Retail 7.6% 6.9%
Oils and Natural Gas Exploration
and Production 5.9% 3.2%
Insurance 5.8% 12.9%
</TABLE>
- -------------------------------------------------------------------------
*Total returns are for the period ending December 31, 1996. 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 perfomance 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.
12
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
MID CAP GROWTH
JANUS CAPITAL CORPORATION JIM GOFF
- --------------------------------------------------------------------------------
The Portfolio lagged the Index in part due to several individual
disappointments, especially in the wireless communications area, but also
because broad market advances had an unusually narrow focus the last three
months. Almost across the board, the fourth-quarter rally was a flight to
liquidity--that is, investors put money almost exclusively into companies with
larger market capitalizations. Much of this "big is beautiful" rally occurred
during the second half of the year, after the July decline, when large stocks
rebounded quickly and smaller stocks, which had been severely battered in the
summer sell-off, recovered only moderately. On the plus side, however, many
stocks that the rally ignored fell to attractive valuations.
Anomalous or not, this period proved difficult. A number of our holdings
either came under profit-taking, or were out of sync with market psychology,
even though their long-term fundamentals have not changed or have even
improved. Among our wireless communications holdings, Paging Network, Millicom
International, PriCellular, and Omnipoint all declined. Fastenal came under
profit-taking, as did lodging and real estate franchiser HFS. Insignia
Financial Group suffered a setback when a major acquisition was abandoned, and
Viking Office Products, where the fundamentals are very much intact, declined
on concerns about the pace of domestic revenue growth. Among the Portfolio's
gainers were Trigen Energy, an independent supplier of utilities to large
commercial buildings and institutions, Barnett, Inc., a distributor of
plumbing, hardware, and electrical supplies, whose rate of earnings growth
continues to improve, and longtime holding Wisconsin Central. An exciting
addition this quarter was Concord EFS, which processes selected credit card
transactions.
Although performance was slightly disappointing, the low valuations in the
mid-cap sector provided a number of attractive buying opportunities. On the
whole, however, I am very excited about the individual companies we hold, and
firmly believe their most exciting growth lies ahead.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Fastenal Co. 6.5% 4.2%
J.D. Wetherspoon plc 4.5% 3.6%
HFS, Inc. 4.4% 4.6%
Global DirectMail Corp. 4.3% 4.0%
Paging Network, Inc. 4.0% 7.3%
Wisconsin Central Transportation Corp. 3.2% 2.0%
Rentokil Initial plc 3.2% N/A
Insignia Financial Group, Inc.-Cl.A 3.2% 0.8%
Petco Animal Supplies, Inc. 3.0% 3.5%
Papa John's International, Inc. 3.0% 1.6%
- -------------------------------------------------------------------------
<CAPTION>
Total Returns -- for 8 months ending 12/31/96*
- -------------------------------------------------------------------------
Mid Cap Russell Mid
Growth Portfolio Cap Growth Index
------------------- ----------------
<S> <C> <C>
Since Inception 2.69% 5.28%
1 Year N/A N/A
- -------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Retail 21.5% 14.3%
Lodging and Restaurants 16.7% 14.6%
Telecommunications 6.7% 21.4%
Business Services 5.7% 3.6%
Health Products and Services 3.9% 9.3%
- -------------------------------------------------------------------------
</TABLE>
*Total returns are for the period ending December 31, 1996. 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
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.
13
<PAGE>
INCEPTION: MAY 1, 1994
- --------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
JOHN HANCOCK ADVISERS, INC. KEVIN BAKER
- --------------------------------------------------------------------------------
For the six months ending December 31, 1996, Special Opportunities returned
9.74% versus a 6.38% return for the Russell Mid Cap Growth Index. During the
period, Energy was the largest and best performing sector as the positive
scenario for energy stocks unfolded. Worldwide demand continued to grow, and
strong commodity prices for oil and gas generated confidence in the industry,
while encouraging increased drilling and exploration worldwide. This increased
level of activity boosted the revenues and profits of oil and gas service
companies. We focused the Portfolio's investment in this group in two
particular areas: drillers and exploration as well as production companies. We
saw opportunities in the Energy sector before it became a "popular" place to
invest.
We increased our weighting in the Financial sector. We saw opportunities in
select hotel and office real estate investment trusts (REITs) in selected
markets. We were attracted to REITs for two reasons: (1) internal growth
opportunities and (2) for the vast opportunities for well-managed companies
benefiting from large scale disposition of real estate properties by insurance
companies. Also, positions were established in non-bank financial service
companies and insurance providers. We believe as long as interest rates and
credit quality remain under control there will be a lot of opportunities in
this area.
We took small positions in the Technology Sector to reduce risk of being hurt
in one particular stock. We largely avoided semiconductor stocks and the
speculative Internet stocks, thereby insulating the portfolio from some of the
more significant losses in those market segments. The Portfolio's software
holdings outperformed while our weighting in computer services underperformed
on the heels of forecasts of slowing contract growth.
Historical Portfolio Return
[GRAPH APPEARS HERE]
$10,000
Investment made 5/1/94
(Inception Date)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Starwood Lodging Trust 2.7% N/A
Smith International, Inc. 2.6% N/A
Global Marine, Inc. 2.6% 2.3%
Nuevo Energy Co. 2.5% 2.0%
Falcon Drilling Co., Inc. 2.5% 2.2%
Ensco International, Inc. 2.4% 0.9%
Energy Ventures, Inc. 2.4% N/A
Titanium Metals Corp. 2.4% 2.3%
Tosco Corp. 2.4% N/A
Forcenergy Gas Exploration, Inc. 2.2% 1.0%
- -------------------------------------------------------------------------
Average Annual Total Returns*
- -------------------------------------------------------------------------
Special Opportunities Russell MidCap MorningStar
Portfolio Growth Index Peer Group+
--------------------- -------------- -----------
<S> <C> <C> <C>
1 Year 30.33% 17.48% 10.17%
Since Inception 24.28% 19.08% N/A
5 Years N/A N/A N/A
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Oils and Natural Equipment
and Services 24.5% 17.2%
Oils and Natural Gas Exploration
and Production 17.3% 14.8%
Metals and Mining 10.5% 19.9%
Real Estate Investment Trust 8.7% N/A
Computer Software and Services 4.0% 9.6%
- -------------------------------------------------------------------------
</TABLE>
*Total returns are for the period ending December 31, 1996, 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
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
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.
+Source: MorningStar, Inc. Data as of 12/31/96. 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 AND BOB SLOTPOLE
- --------------------------------------------------------------------------------
Small company stocks continued to gain ground in the final half of 1996, but
failed to match the exceedingly strong returns of larger companies. This runs
counter to the longer term tendency for smaller companies to outperform other
sectors of the equities market. If current Wall Street profit forecasts are
accurate, small companies as a group will grow earnings at twice the pace of
larger companies in 1997.
For all of 1996, the Russell 2000 small cap benchmark posted a solid 16.5%
return. The July sell-off in the technology sector resulted in a third quarter
benchmark return of only 0.35%. In the fourth quarter, the Russell 2000 Index
was helped by the very strong performance of REITs and financial services
companies. Both groups benefited from a favorable interest rate environment.
Energy stocks were also strong, aided by a shortage of natural gas supply.
Value stocks easily outpaced growth late in the year, in large part due to
their predominance in those sectors mentioned above.
The Small Cap Value Portfolio outpaced the Russell 2000 Index in both the
third and fourth quarters, returning 9.8% versus 5.6% in the combined period.
The Portfolio has performed equally well against the Russell 2000 Index since
its inception on May 1st, returning 10.33% (net of management fees & operating
expenses) versus 5.21% for the benchmark.
Our focus on identifying value in each sector of the small cap market allowed
us to minimize much of the market's recent volatility in the health,
technology, and telecom sectors. It also assured our participation in the
energy and financials sectors which led the small cap market in the later half
of 1996. Standout performers among our top ten holdings include Mississippi
Valley Bancshares, Sotheby's Holdings--CL. A and CBL & Associates Properties,
an equity REIT.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Commercial Federal Corp. 2.1% N/A
Dexter Corp. 1.8% 0.9%
Mississippi Valley Bancshares, Inc. 1.5% N/A
ABM Industries, Inc. 1.5% N/A
Sotheby's Holdings, Inc. 1.3% N/A
Quanex Corp. 1.3% N/A
CBL & Associates Properties, Inc. 1.2% N/A
Precision Castparts Corp. 1.2% N/A
Wellsford Residential Property Trust 1.1% N/A
Adolph Coors Co.-Cl.B 1.1% N/A
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Total Returns -- for 8 months ending 12/31/96*
- -------------------------------------------------------------------------
Small Cap Russell 2000
Value Portfolio Index
--------------- ------------
<S> <C> <C>
Since Inception 10.33% 5.21%
1 Year N/A N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Health Products and Services 8.2% 8.6%
Real Estate Investment Trust 7.9% N/A
Banks and Finance 6.9% 7.1%
Insurance 4.7% 7.4%
Electronic and Processing Equipment 4.4% 5.9%
- -------------------------------------------------------------------------
</TABLE>
*Total returns are for the period ending December 31, 1996. 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. Small-company investing entails special risks,
as outlined in the correct 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 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 prospectus.
15
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
JOHN HANCOCK ADVISERS, INC. BERNICE BEHAR
- --------------------------------------------------------------------------------
Since inception, the Small Cap Growth Portfolio returned -0.80 versus -2.28%
for the Russell 2000 Growth Index. Many of our holdings, which increased in
excess of 100% last quarter, experienced severe bouts of profit taking.
However, fundamentals and valuations look very reasonable for our companies.
During the period, we benefited from consolidation in the media/broadcasting
industry which took place earlier in the year. More recently, we have decreased
our position as the probability for further consolidation in the radio industry
has fallen since the election. The Department of Justice capped the number of
radio stations one company can own in one market. We feel the majority of
mergers have occurred.
The favorable economic environment contributed to an excellent quarter and
year for financial stocks, though the portfolio was underweighted in this
sector due to the Portfolio's growth strategy. We also saw opportunities in
certain hotel and office real estate investment trusts (REITs) in markets where
demand far exceeds supply. REITs were attractive for two reasons. First, for
internal growth opportunities, second for the vast opportunities for well-
managed companies benefiting from large scale disposition of real estate
properties by insurance companies. We established positions in non-bank
financial service companies and insurance providers.
We saw a real divergence between technology companies. Throughout the period,
investors favored companies with more predictable earnings. The current market
cycle reacted very quickly to short-term phenomena rather than taking a long-
term perspective. In late 1996, the market rally in technology was highly
focused on the semiconductor industry which many perceived to be emerging from
a major slowdown. We are seeing more growth opportunities and will be
emphasizing more in this area in 1997.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Dura Pharmaceuticals, Inc. 1.1% 0.5%
Starwood Lodging Trust 1.1% N/A
CBT Group plc-ADR 1.0% 0.6%
Baan Co., NV 1.0% 0.6%
Catalina Marketing Corp. 1.0% 0.3%
Ultrak, Inc. 1.0% N/A
Henry Schein, Inc. 1.0% 0.7%
Network Appliance, Inc. 1.0% 0.2%
Apollo Group, Inc.-Cl.A 1.0% 0.6%
Regal Cinemas, Inc. 1.0% 0.7%
- -------------------------------------------------------------------------
Total Returns -- for 8 months ending 12/31/96*
- -------------------------------------------------------------------------
Small Cap Growth Russell 2000
Portfolio Growth Index
------------------- ----------------
<S> <C> <C>
Since Inception -0.50% -2.28%
1 Year N/A N/A
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Computer Software and Services 12.9% 11.5%
Health Products and Services 11.4% 12.5%
Retail 8.0% 5.6%
Business Services 6.7% 5.0%
Financial Services 5.5% 2.8%
- -------------------------------------------------------------------------
</TABLE>
*Total returns are for the period ending December 31, 1996. 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. Small-company investing entails special risks 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.
16
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
BRINSON PARTNERS, INC.
- --------------------------------------------------------------------------------
Within the equity portion of the Portfolio, our market, security, and currency
selection all contributed to returns for the fourth quarter. The largest
contribution came from security selection in Japan. Bond market allocation
benefited from an overweight position in Canada and our underweight position in
Japan. Bond management over this time frame was roughly neutral. Our defensive
position relative to overvalued foreign currencies continued to be a
significant contributor to performance.
Non-U.S. equity markets rose modestly in the fourth quarter of 1996, in
aggregate registering a gain of 3.13% in dollar-hedged terms. Similarly, the
non-U.S. bond markets in dollar-hedged terms rose 3.94%. Currencies continued
to fall modestly over the quarter. The weakest currencies were the Swiss franc,
which fell 7.51%, followed by the Japanese yen, which declined 5.32%.
On average, GDP/GNP growth rates should range around 2-3% for 1997. Despite
this environment of modest GDP growth, the combination of fiscal restraint and
downward wage pressures should help to keep inflation under control.
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 as compared to
international equities. The economic situation in Europe continues to be
supportive for bonds . We expect yield curves to normalize primarily through a
decline in long-term rates. The Japanese bond and equity markets continue to be
the least attractive relative to those of other developed countries.
Our currency strategy has not changed over the quarter. Our underweights in
the Japanese yen and core European currencies, and our overweight in the U.S.
dollar contributed significantly to portfolio performance.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Federal Republic of Germany 9.6% 9.9%
Government of Canada 6.3% 4.4%
Netherlands Government 6.1% 5.7%
Government of France 5.4% 5.4%
Republic of Italy 4.8% 4.7%
Kingdom of Denmark 4.4% 4.4%
Conversion 3.2% 2.8%
Belgium Kingdom 1.7% 1.0%
Royal Dutch Petroleum Co. 1.2% 1.3%
Swedish Government-Debs. 1.2% N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Total Returns -- for 8 months ending 12/31/96*
- -------------------------------------------------------------------------
International Balanced International Balanced
Portfolio Composite Index**
---------------------- ----------------------
<S> <C> <C>
Since Inception 6.73% 2.78%
1 Year N/A N/A
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Governmental 42.7% 42.8%
Banks and Finance 6.3% 6.5%
Oil and Natural Gas Exploration
and Production 3.7% 3.8%
Food, Beverage and Tobacco 3.6% 3.6%
Electronic and Processing Equipment 3.5% 4.2%
- -------------------------------------------------------------------------
</TABLE>
* Total returns are for the period ending December 31, 1996. 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.
** International Balanced Composite Index: 6.7% Morgan Stanley Capital
International World Index Excluding US, and 33% 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
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.
17
<PAGE>
INCEPTION: MAY 2, 1988
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO (FORMERLY INTERNATIONAL)
JOHN HANCOCK ADVISERS, INC. JOHN L. F. WILLS
- --------------------------------------------------------------------------------
For the six months ending December 31, 1996, your International Equities
Portfolio returned 2.34% versus a 1.46% return for the MSCI EAFE Index. During
the period, we overweighted Hong Kong given an inexpensive stock market and
tremendous growth opportunities. Our performance has been enhanced by the
bullishness in this market as well as specific investments in China stocks and
real estate companies, which were boosted by a 30% advance in real estate
prices this past year.
Japan was underweighted as doubt continues to sweep through the Japanese
market. The only positive market sectors from which we benefited over the last
six months were the export, consumer electronics and technology sectors. This
is an area where we have taken profits and where we plan to take more profits
in the near future. In Japan, banks continued to sell stocks to cover loan
losses and to shore up their balance sheets, corporations continued to sell
stocks to raise capital and individuals continued to sell stocks as they
worried about potential unemployment. The performance of Japanese stocks was
also hit by the yen's fall against the dollar to a 45-month low at year end.
Stocks across Europe also hit all-time highs as interest rates remained low,
economic indicators remained positive and investors remained confident. U.K.
stocks continued their advance and were boosted by a strong British Pound.
While our U.K. stocks advanced during the quarter, we redeployed some of these
assets to Germany and Eastern Europe. We also increased our holdings in Eastern
Europe as these securities offer tremendous value given their current growth
rate.
Historical Portfolio Return
[GRAPH APPEARS HERE]
$10,000
Investment made 5/2/88
(Inception Date)
Top Ten Holdings (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Moet Hennessy-Louis Vultton 2.9% 2.2%
TDK Corp. 2.6% 2.2%
Dixons Group plc 2.5% 2.9%
Matsushita Electric Industrial Co. 2.5% 3.0%
Pearson plc 2.5% 1.7%
Mitsubishi Heavy Industries, Ltd. 2.4% 2.6%
Sony Corp. 2.4% 2.5%
Investor AB 2.4% 2.1%
Citic Pacific, Ltd. 2.3% 1.7%
SMH AG 2.3% 2.1%
</TABLE>
Average Annual Total Returns/*/
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equities MSCI EAFE MorningStar
Portfolio Index Peer Group+
---------------------- --------- -----------
<S> <C> <C> <C>
1 Year 9.19% 6.36% 11.48%
5 Years 7.53% 8.48% 9.06%
Since Inception 8.11% 5.42% N/A
</TABLE>
Top Five Industries (as of December 31, 1996)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of six months ago
investments % of investments
<S> <C> <C>
Diversified Operations 14.6% 11.6%
Electronic and Processing Equipment 9.1% 10.7%
Real Estate 8.9% 4.2%
Miscellaneous 6.2% 4.8%
Metals and Mining
</TABLE>
*Total returns are for the period ending December 31, 1996, 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
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.
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.
+Source: MorningStar, Inc. Data as of 12/31/96. 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
- --------------------------------------------------------------------------------
International markets generally ended 1996 on a strong note. Over the fourth
quarter, European markets were the strongest performers with Spain, Norway and
the U.K. particularly good. In the Pacific, Hong Kong and Malaysia were
strongest whereas Korea and Thailand fell sharply. Argentina and Brazil led
Latin American markets with Mexico flat. Japan ended the year on a weak note
with pessimism spreading about the economic outlook for 1997. Over the quarter,
the dollar continued the trend seen earlier in the year, rising further against
other major world currencies with the yen particularly weak.
Over the quarter, we used market strength to reduce exposure to specific
companies in the Netherlands, Hong Kong and Malaysia. Additions to the
portfolio were concentrated in France, Singapore and Mexico. In addition, a
modest exposure was initiated to a number of new markets such as the
Philippines and Venezuela. Activity in Japan remained limited, although a small
number of additions were made into the market weakness.
We are optimistic that international markets, as a group, can make further
progress over the next twelve months and should finally be able to outpace the
U.S. juggernaut. The economic outlook world-wide remains supportive with steady
if unexciting growth being seen in both Europe and Japan. On the back of this,
corporate earnings growth remains reasonable and has the potential to surprise
positively in a number of equity markets. Recent bond market strength has
helped to provide support for equity market valuations which, while not cheap,
remain generally acceptable. Japan, which as a market still looks expensive,
continues to be the principal exception here. Selectively, investment
opportunities look attractive in Europe while the smaller markets of Asia and
Latin America have the potential to rise further in 1997.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Top Ten Holdings (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Wolters Kluwer NV 2.1% 1.9%
Royal Dutch Petroleum Co. 2.0% 1.6%
Elsevier NV 1.9% 1.5%
Smithkline Beecham plc 1.5% 1.1%
Telecomunicacoes Brasileiras
S/A-Telebras 1.4% 1.1%
National Westminster Bank plc 1.3% 1.1%
Compagnie Generale des Eaux 1.2% 0.9%
Reed International plc 1.2% 1.0%
Astra AB-ADR Ser. A 1.1% 0.9%
Novartis AG 1.0% N/A
<CAPTION>
- -------------------------------------------------------------------------
Total Returns -- for 8 months ending 12/31/96*
- -------------------------------------------------------------------------
International MSCIEAFE
Opportunities Portfolio Index
----------------------- ----------
<S> <C> <C>
Since Inception 6.72% 0.36%
1 Year N/A N/A
- -------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------
Top Five Industries (as of December 31, 1996)
- -------------------------------------------------------------------------
% of six months ago
investments % of investments
<S> <C> <C>
Banks and Finance 8.5% 7.2%
Health Products and Services 7.8% 5.8%
Retail 7.2% 6.9%
Diversified Operations 7.2% 4.6%
Publications 6.4% 5.5%
- -------------------------------------------------------------------------
</TABLE>
* Total returns are for the period ending December 31, 1996. 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, whenredeemed, may be worth more or less
than their original cost. There are special risks associated with interntional
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 perfomance 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.
19
<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.
20
<PAGE>
- --------------------------------------------------------------------------------
PEER GROUP -- MORNINGSTAR UNIVERSE
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO: Consistent with the Growth & Income 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 Blend equity investment style as of
12/31/96.
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 Blend equity investment style as of
12/31/96.
MANAGED PORTFOLIO: Consistent with the Managed 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 as
of 12/31/96.
SOVEREIGN BOND PORTFOLIO: Consistent with the Sovereign Bond Portfolio's
investment style, this peer group represents an average annual total return for
all variable annuity and life products within the Morning Star variable
universe that have a Corporate Bond investment objective as of 12/31/96.
INTERNATIONAL EQUITIES 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 International Equity investment objective,
combined with a Large Blend equity investment style as of 12/31/96.
SPECIAL OPPORTUNITIES PORTFOLIO: Consistent with the Special Opportunities
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 Growth equity investment objective, combined with
a Mid Cap Growth equity investment style as of 12/31/96.
SHORT-TERM U.S. GOVERNMENT PORTFOLIO: Consistent with the Short-Term U.S.
Government 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 as of
12/31/96.
21
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
(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..................... $461,348 $662,837 $125,136 $16,134 $21,559 $14,633 $16,725 $ 8,053
Net unrealized
appreciation of
investments.............. 50,874 10,399 18,970 811 911 619 1,211 1,031
Short-Term Investments at
market................... 10,552 41,211 11,831 3,881 775 2,100 2,308 $212,394 1,772
-------- -------- -------- ------- ------- ------- ------- -------- -------
Total Investments........ 522,774 714,447 155,937 20,826 23,245 17,352 20,244 212,394 10,856
Cash...................... 108 43 489 221 1
Receivable for:
Investments sold......... 35 557 21 122 43 16
Fund shares sold......... 26 114 46 104 173 923 59
Interest................. 12,047 7 241 9
Dividends................ 627 76 6 21 39 7
Unrealized appreciation
on forward foreign
currency contracts...... 81
Other assets............. 1,888 39 44 2
-------- -------- -------- ------- ------- ------- ------- -------- -------
TOTAL ASSETS............. $525,397 $726,529 $156,085 $21,546 $24,188 $17,801 $20,509 $213,317 $10,938
LIABILITIES
Payable for:
Investments purchased.... 908 34 1,299 723 8
Fund shares purchased.... 137
Unrealized depreciation
on forward foreign
currency contracts......
Futures contracts daily
variation............... 20
Other liabilities........ 1,252 281 332 5 36 10 5 82 4
-------- -------- -------- ------- ------- ------- ------- -------- -------
TOTAL LIABILITIES........ 1,252 418 332 913 90 1,309 728 82 12
-------- -------- -------- ------- ------- ------- ------- -------- -------
NET ASSETS................ 524,145 726,111 155,753 20,633 24,098 16,492 19,781 213,235 10,926
======== ======== ======== ======= ======= ======= ======= ======== =======
Shares of beneficial
interest outstanding..... 29,965 74,315 9,254 2,077 2,319 1,613 1,784 21,324 963
-------- -------- -------- ------- ------- ------- ------- -------- -------
Net asset value per share. $ 17.49 $ 9.77 $ 16.83 $ 9.93 $ 10.39 $ 10.22 $ 11.09 $ 10.00 $ 11.35
======== ======== ======== ======= ======= ======= ======= ======== =======
Composition of net assets:
Capital Paid-in.......... 474,681 715,475 136,790 21,312 23,172 16,215 18,587 213,235 9,903
Accumulated net realized
gain (loss) on
investments............. (1,410) 237 (7) (1,491) (38) (340) (17) (8)
Undistributed
(Distributions in excess
of) net investment
income.................. (11) 2
Net unrealized
appreciation/(depreciation)
of:
Investments.............. 50,874 10,399 18,970 812 911 619 1,211 1,031
Foreign currency
translation............. 84 (4)
Futures contracts........ (20)
-------- -------- -------- ------- ------- ------- ------- -------- -------
Net Assets................ $524,145 $726,111 $155,753 $20,633 $24,098 $16,492 $19,781 $213,235 $10,926
======== ======== ======== ======= ======= ======= ======= ======== =======
</TABLE>
See notes to financial statements.
22
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term
Special Real Estate Growth & U.S. Small Cap International Equity
Opportunities Equity Income Managed Government Value Opportunities Index
------------- ----------- ---------- ---------- ---------- --------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term
Investments at
cost............. $148,328 $113,965 $1,643,518 $2,155,165 $56,744 $ 8,616 $15,195 $12,944
Net unrealized
appreciation
(depreciation) of
investments...... 28,723 31,444 359,928 166,200 (357) 700 1,035 1,223
Short-Term
Investments at
market........... 21,833 4,891 40,001 95,127 1,310 1,160 1,389 802
-------- -------- ---------- ---------- ------- ------- ------- -------
Total
Investments..... 198,884 150,300 2,043,447 2,416,492 57,697 10,476 17,619 14,969
Cash.............. 107 671 1,745 326 192 27
Receivable for:
Investments sold. 1,095 17
Fund shares sold. 444 53 76 76
Interest......... 19,105 603
Dividends........ 201 738 4,297 2,007 15 12 23
Unrealized
appreciation on
forward foreign
currency
contracts.......
Other assets..... 71 3,049 7 73 12
-------- -------- ---------- ---------- ------- ------- ------- -------
TOTAL ASSETS..... $200,624 $151,216 $2,051,464 $2,439,356 $58,699 $10,544 $17,928 $15,095
LIABILITIES
Payable for:
Investments
purchased....... 6,287 2,098 52,124 15 445
Fund shares
purchased....... 395
Unrealized
depreciation on
forward foreign
currency
contracts.......
Futures contracts
daily variation.
Other
liabilities..... 229 111 1,439 177 23 3 15
-------- -------- ---------- ---------- ------- ------- ------- -------
TOTAL
LIABILITIES..... 6,516 111 3,537 52,696 23 3 30 445
-------- -------- ---------- ---------- ------- ------- ------- -------
NET ASSETS........ 194,108 151,105 2,047,927 2,386,660 58,676 10,541 17,898 14,650
======== ======== ========== ========== ======= ======= ======= =======
Shares of
beneficial
interest
outstanding...... 11,749 10,325 139,748 178,745 5,840 982 1,689 1,320
-------- -------- ---------- ---------- ------- ------- ------- -------
Net asset value
per share........ $ 16.52 $ 14.64 $ 14.65 $ 13.35 $ 10.05 $ 10.73 $ 10.60 $ 11.10
======== ======== ========== ========== ======= ======= ======= =======
Composition of net
assets:
Capital Paid-in.. $165,887 $119,747 $1,686,878 $2,235,893 $59,042 $ 9,841 $16,919 $13,465
Accumulated net
realized gain
(loss) on
investments..... (502) (86) (396) (15,433) (9) (13) (38)
Undistributed
(Distributions
in excess of)
net investment
income.......... 1,517 (43)
Net unrealized
appreciation/(depreciation)
of:
Investments...... 28,723 31,444 359,928 166,200 (357) 700 1,035 1,223
Foreign currency
translation.....
Futures
contracts.......
-------- -------- ---------- ---------- ------- ------- ------- -------
Net Assets........ $194,108 $151,105 $2,047,927 $2,386,660 $58,676 $10,541 $17,898 $14,650
======== ======== ========== ========== ======= ======= ======= =======
<CAPTION>
Strategic
Bond
---------
<S> <C>
ASSETS
Long Term
Investments at
cost............. $11,077
Net unrealized
appreciation
(depreciation) of
investments...... 266
Short-Term
Investments at
market........... 1,282
---------
Total
Investments..... 12,625
Cash.............. 320
Receivable for:
Investments sold. 202
Fund shares sold. 64
Interest......... 191
Dividends........
Unrealized
appreciation on
forward foreign
currency
contracts.......
Other assets..... 2
---------
TOTAL ASSETS..... $13,404
LIABILITIES
Payable for:
Investments
purchased....... 485
Fund shares
purchased.......
Unrealized
depreciation on
forward foreign
currency
contracts....... 2
Futures contracts
daily variation.
Other
liabilities..... 10
---------
TOTAL
LIABILITIES..... 497
---------
NET ASSETS........ 12,907
=========
Shares of
beneficial
interest
outstanding...... 1,271
---------
Net asset value
per share........ $ 10.16
=========
Composition of net
assets:
Capital Paid-in.. $12,645
Accumulated net
realized gain
(loss) on
investments..... (2)
Undistributed
(Distributions
in excess of)
net investment
income..........
Net unrealized
appreciation/(depreciation)
of:
Investments...... 266
Foreign currency
translation..... (2)
Futures
contracts.......
---------
Net Assets........ $12,907
=========
</TABLE>
See notes to financial statements.
23
<PAGE>
STATEMENT OF OPERATIONS
JOHN HANCOCK VARIABLE SERIES TRUST I
Year Ended December 31, 1996
- --------------------------------------------------------------------------------
(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................ $ 757 $ 51,353 $ 507 $ 91 $ 495 $ 40 $ 67 $10,971 $ 31
Dividends (Note B)...... 7,216 2,432 12 192 63 204 55
------- -------- ------- ------- ------ ----- ------ ------- ------
7,973 51,353 2,939 103 687 103 271 10,971 86
Expenses
Investment advisory fee
(Note C)............... 1,785 1,749 861 69 124 43 54 499 40
Auditors fee............ 23 29 13 10 10 9 10 15 10
Trustees fees........... 5 5 6 6 5 6 5 5 5
Custodian fees.......... 40 155 152 22 34 25 31 27 16
Fidelity bond........... 1 1 1 1
Printing & mailing
fees................... 86 111 52 36 37 36 36 59 36
------- -------- ------- ------- ------ ----- ------ ------- ------
1,940 2,049 1,085 143 210 119 137 606 107
Less expenses
reimbursed/waived
(Note C)............... 51 50 63 65 55
------- -------- ------- ------- ------ ----- ------ ------- ------
1,940 2,049 1,085 92 160 56 72 606 52
------- -------- ------- ------- ------ ----- ------ ------- ------
Net Investment Income.... 6,033 49,304 1,854 11 527 47 199 10,365 34
REALIZED AND UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized gain/(loss)
on sales of
investments............ 70,842 3,975 1,098 (1,491) 2 (338) 209 197
Increase in unrealized
appreciation/(depreciation)
of:
Investments............. (979) (24,593) 9,402 811 911 619 1,211 1,031
Foreign currency
translation............ 70 64 (2)
------- -------- ------- ------- ------ ----- ------ ------- ------
Net realized and
unrealized gain/(loss)
on investments......... 69,863 (20,618) 10,570 (680) 977 279 1,420 1,228
------- -------- ------- ------- ------ ----- ------ ------- ------
Net increase (decrease)
in net assets resulting
from operations........ $75,896 $ 28,686 $12,424 $ (669) $1,504 $ 326 $1,619 $10,365 $1,262
======= ======== ======= ======= ====== ===== ====== ======= ======
</TABLE>
(*) Commenced investment operations on May 1, 1996.
See notes to financial statements.
24
<PAGE>
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
Year Ended December 31, 1996
- --------------------------------------------------------------------------------
(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.......... $ 735 $ 159 $ 5,033 $ 81,332 $1,873 $ 44 $ 56 $ 28 $617
Dividends (Note
B)............... 488 7,937 40,291 24,517 77 148 131
------- ------- -------- -------- ------ ---- ------ ------ ----
1,223 8,096 45,324 105,849 1,873 121 204 159 617
Expenses
Investment
advisory fee
(Note C)......... 901 712 4,525 7,419 146 44 96 15 66
Auditors fee...... 13 12 62 71 10 10 10 10 10
Trustees fees..... 5 6 5 5 5 5 5 5 5
Custodian fees.... 43 39 63 193 29 18 118 36 20
Fidelity bond..... 1 1 1 1 1 1 1
Printing &
mailing fees .... 48 49 235 286 39 36 36 36 36
------- ------- -------- -------- ------ ---- ------ ------ ----
1,011 819 4,891 7,975 230 114 265 102 138
Less expenses
reimbursed/waived
(Note C)......... 10 56 145 102 50
------- ------- -------- -------- ------ ---- ------ ------ ----
1,011 819 4,891 7,975 220 58 120 0 88
------- ------- -------- -------- ------ ---- ------ ------ ----
Net Investment
Income............ 212 7,277 40,433 97,874 1,653 63 84 159 529
REALIZED AND
UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized
gain/(loss) on
sales of
investments...... 6,812 663 214,384 190,969 6 217 (40) 89 148
Increase in
unrealized
appreciation/(depreciation)
of:
Investments....... 22,836 28,588 79,058 (58,766) (606) 700 1,035 1,223 266
Foreign currency
translation...... (2)
------- ------- -------- -------- ------ ---- ------ ------ ----
Net realized and
unrealized
gain/(loss) on
investments...... 29,648 29,251 293,442 132,203 (600) 917 995 1,312 412
------- ------- -------- -------- ------ ---- ------ ------ ----
Net increase in
net assets
resulting from
operations....... $29,860 $36,528 $333,875 $230,077 $1,053 $980 $1,079 $1,471 $941
======= ======= ======== ======== ====== ==== ====== ====== ====
</TABLE>
(*) Commenced investment operations on May 1, 1996.
See notes to financial statements.
25
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small Cap
Large Cap Growth Sovereign Bond International Equities Growth
------------------------- ------------------------- ------------------------- ------------
Period from
May 1,
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended 1996 (*) to
December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1996 1995 1996 1995 1996 1995 1996
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
FROM OPERATIONS
Net investment
income......... $ 6,033 $ 8,156 $ 49,304 $ 46,480 $ 1,854 $ 1,636 $ 11
Net realized
gain/(loss) on
sales of
investments.... 70,842 22,402 3,975 12,223 1,098 (1,842) (1,491)
Change in net
unrealized
appreciation/(depreciation)
of investments. (979) 50,615 (24,593) 55,495 9,402 9,583 811
Foreign
currency
translation.... 70 (70)
-------- -------- -------- -------- -------- -------- -------
Net increase
(decrease) in
net assets
resulting from
operations..... 75,896 81,173 28,686 114,198 12,424 9,307 (669)
Distributions to
Shareholders
From:
Net investment
income......... (6,033) (8,156) (49,304) (46,480) (1,831) (1,317) (18)
Realized gain on
investments.... (71,587) (22,019) (3,975) (6,272) (12)
Capital Paid-in. (532) (66)
-------- -------- -------- -------- -------- -------- -------
Decrease in net
assets
resulting from
distributions.. (77,620) (30,707) (53,279) (52,752) (1,831) (1,395) (18)
Trust Share
Transactions
Proceeds from
shares sold.... 104,231 90,450 64,307 44,542 37,327 25,117 27,331
Distributions
reinvested..... 77,620 30,707 53,279 52,752 1,831 1,395 18
Payment for
shares
redeemed....... (36,258) (15,304) (67,191) (45,508) (20,801) (26,952) (6,029)
-------- -------- -------- -------- -------- -------- -------
Increase
(decrease)
from trust
share
transactions... 145,593 105,853 50,395 51,786 18,357 (440) 21,320
-------- -------- -------- -------- -------- -------- -------
NET INCREASE IN
NET ASSETS...... 143,869 156,319 25,802 113,232 28,950 7,472 20,633
NET ASSETS
Beginning of
Year........... 380,276 223,957 700,309 587,077 126,803 119,331 0
-------- -------- -------- -------- -------- -------- -------
End of Year..... $524,145 $380,276 $726,111 $700,309 $155,753 $126,803 $20,633
======== ======== ======== ======== ======== ======== =======
Analysis of Trust
Share
Transactions:
Sold............ 5,608 5,486 6,571 4,526 2,305 1,668 2,681
Reinvested...... 4,422 1,788 5,466 5,363 112 93 2
Redeemed........ (1,960) (925) (6,870) (4,648) (1,286) (1,800) (606)
-------- -------- -------- -------- -------- -------- -------
Net increase
(decrease) in
shares
outstanding..... 8,070 6,349 5,167 5,241 1,131 (39) 2,077
======== ======== ======== ======== ======== ======== =======
<CAPTION>
International Mid Cap
Balanced Growth
------------- ------------
Period from Period from
May 1, May 1,
1996 (*) to 1996 (*) to
December 31, December 31,
1996 1996
------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
FROM OPERATIONS
Net investment
income......... $ 527 $ 47
Net realized
gain/(loss) on
sales of
investments.... 2 (338)
Change in net
unrealized
appreciation/(depreciation)
of investments. 911 619
Foreign
currency
translation.... 64 (2)
------------- ------------
Net increase
(decrease) in
net assets
resulting from
operations..... 1,504 326
Distributions to
Shareholders
From:
Net investment
income......... (537) (47)
Realized gain on
investments.... (55)
Capital Paid-in.
------------- ------------
Decrease in net
assets
resulting from
distributions.. (592) (47)
Trust Share
Transactions
Proceeds from
shares sold.... 25,192 17,779
Distributions
reinvested..... 592 47
Payment for
shares
redeemed....... (2,598) (1,613)
------------- ------------
Increase
(decrease)
from trust
share
transactions... 23,186 16,213
------------- ------------
NET INCREASE IN
NET ASSETS...... 24,098 16,492
NET ASSETS
Beginning of
Year........... 0 0
------------- ------------
End of Year..... $24,098 $16,492
============= ============
Analysis of Trust
Share
Transactions:
Sold............ 2,515 1,763
Reinvested...... 59 5
Redeemed........ (255) (155)
------------- ------------
Net increase
(decrease) in
shares
outstanding..... 2,319 1,613
============= ============
</TABLE>
(*) Commencement of investment operations.
See notes to financial statements.
26
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Mid Cap Special
Value Money Market Value Opportunities Real Estate Equity
-------------- ------------------------- -------------- ------------------------- -------------------------
Period from Period from
May 1, 1996(*) May 1, 1996(*)
to Year Ended Year Ended to Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1996 1996 1995 1996 1996 1995 1996 1995
-------------- ------------ ------------ -------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment
income(loss)... $ 199 $ 10,365 $ 9,304 $ 34 $ 212 $ (25) $ 7,277 $ 7,397
Net realized
gain/(loss) on
sales of
investments.... 209 197 6,812 1,206 663 (498)
Change in net
unrealized
appreciation of
investments.... 1,211 1,031 22,836 5,845 28,588 5,396
Foreign currency
translation....
------- -------- -------- ------- -------- ------- -------- --------
Net increase in
net assets
resulting from
operations..... 1,619 10,365 9,304 1,262 29,860 7,026 36,528 12,295
Distributions to
Shareholders
From:
Net investment
income......... (199) (10,365) (9,304) (34) (177) (7,277) (7,397)
Realized gain on
investments.... (225) (205) (7,290) (1,284) (274)
Capital Paid-in. (10)
------- -------- -------- ------- -------- ------- -------- --------
Decrease in net
assets
resulting from
distributions.. (424) (10,365) (9,304) (239) (7,467) (1,294) (7,551) (7,397)
Trust Share
Transactions
Proceeds from
shares sold.... 22,296 166,173 100,515 12,553 121,171 43,847 21,037 11,344
Distributions
reinvested..... 424 10,365 9,304 239 7,467 1,294 7,551 7,397
Payment for
shares
redeemed....... (4,134) (149,212) (72,578) (2,889) (11,409) (3,568) (15,242) (28,402)
------- -------- -------- ------- -------- ------- -------- --------
Increase
(decrease) from
trust share
transactions... 18,586 27,326 37,241 9,903 117,229 41,573 13,346 (9,661)
------- -------- -------- ------- -------- ------- -------- --------
NET INCREASE
(DECREASE) IN
NET ASSETS...... 19,781 27,326 37,241 10,926 139,622 47,305 42,323 (4,763)
NET ASSETS
Beginning of
Year........... 0 185,909 148,668 0 54,486 7,181 108,782 113,545
------- -------- -------- ------- -------- ------- -------- --------
End of Year..... $19,781 $213,235 $185,909 $10,926 $194,108 $54,486 $151,105 $108,782
======= ======== ======== ======= ======== ======= ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 2,130 16,617 10,052 1,215 7,921 3,605 1,675 1,019
Reinvested...... 39 1,037 930 21 452 98 594 662
Redeemed........ (385) (14,921) (7,258) (273) (757) (293) (1,245) (2,558)
------- -------- -------- ------- -------- ------- -------- --------
Net increase
(decrease) in
shares
outstanding..... 1,784 2,733 3,724 963 7,616 3,410 1,024 (877)
======= ======== ======== ======= ======== ======= ======== ========
<CAPTION>
Growth & Income
-------------------------
Year Ended Year Ended
December 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment
income(loss)... $ 40,433 $ 36,725
Net realized
gain/(loss) on
sales of
investments.... 214,384 115,279
Change in net
unrealized
appreciation of
investments.... 79,058 241,206
Foreign currency
translation....
------------ ------------
Net increase in
net assets
resulting from
operations..... 333,875 393,210
Distributions to
Shareholders
From:
Net investment
income......... (40,433) (36,725)
Realized gain on
investments.... (214,837) (115,278)
Capital Paid-in.
------------ ------------
Decrease in net
assets
resulting from
distributions.. (255,270) (152,003)
Trust Share
Transactions
Proceeds from
shares sold.... 221,113 139,807
Distributions
reinvested..... 255,270 152,003
Payment for
shares
redeemed....... (105,646) (54,296)
------------ ------------
Increase
(decrease) from
trust share
transactions... 370,737 237,514
------------ ------------
NET INCREASE
(DECREASE) IN
NET ASSETS...... 449,342 478,721
NET ASSETS
Beginning of
Year........... 1,598,585 1,119,864
------------ ------------
End of Year..... $2,047,927 $1,598,585
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 14,713 10,365
Reinvested...... 17,357 11,011
Redeemed........ (6,988) (4,071)
------------ ------------
Net increase
(decrease) in
shares
outstanding..... 25,082 17,305
============ ============
</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>
Short-Term
U.S. Small Cap International Equity
Managed Government Value Opportunities Index
------------------------- ------------------------- --------------- --------------- ---------------
Period from Period from Period from
Year Ended Year Ended Year Ended Year Ended May 1, 1996(*) May 1, 1996(*) May 1, 1996(*)
December 31, December 31, December 31, December 31, to December 31, to December 31, to December 31,
1996 1995 1996 1995 1996 1996 1996
------------ ------------ ------------ ------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE
(DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment
income......... $ 97,874 $ 85,481 $ 1,653 $ 418 $ 63 $ 84 $ 159
Net realized
gain/(loss) on
sales of
investments.... 190,969 113,356 6 37 217 (40) 89
Change in net
unrealized
appreciation/(depreciation)
of investments. (58,766) 237,036 (606) 279 700 1,035 1,223
Foreign
currency
translation....
---------- ---------- -------- ------- ------- ------- -------
Net increase in
net assets
resulting from
operations..... 230,077 435,873 1,053 734 980 1,079 1,471
Distributions to
Shareholders
From:
Net investment
income......... (97,874) (85,481) (1,653) (418) (63) (103) (159)
Realized gain on
investments.... (195,066) (113,487) (11) (41) (217) (127)
Capital Paid-in. (84)
---------- ---------- -------- ------- ------- ------- -------
Decrease in net
assets
resulting from
distributions.. (292,940) (198,968) (1,664) (459) (280) (103) (370)
Capital
Contribution.... 84
Trust Share
Transactions
Proceeds from
shares sold.... 211,434 149,758 50,935 18,397 13,755 22,695 17,391
Distributions
reinvested..... 292,940 198,968 1,664 459 280 103 370
Payment for
shares
redeemed....... (148,815) (101,606) (11,223) (2,938) (4,194) (5,876) (4,296)
---------- ---------- -------- ------- ------- ------- -------
Increase from
trust share
transactions... 355,559 247,120 41,376 15,918 9,841 16,922 13,549
---------- ---------- -------- ------- ------- ------- -------
NET INCREASE IN
NET ASSETS...... 292,696 484,025 40,765 16,193 10,541 17,898 14,650
NET ASSETS
Beginning of
Year........... 2,093,964 1,609,939 17,911 1,718
---------- ---------- -------- ------- ------- ------- -------
End of Year..... $2,386,660 $2,093,964 $ 58,676 $17,911 $10,541 $17,898 $14,650
========== ========== ======== ======= ======= ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 15,162 11,051 5,041 1,819 1,357 2,253 1,681
Reinvested...... 21,665 14,665 166 45 26 10 34
Redeemed........ (10,626) (7,760) (1,117) (292) (401) (574) (395)
---------- ---------- -------- ------- ------- ------- -------
Net increase in
shares
outstanding..... 26,201 17,956 4,090 1,572 982 1,689 1,320
========== ========== ======== ======= ======= ======= =======
<CAPTION>
Strategic
Bond
---------------
Period from
May 1, 1996(*)
to December 31,
1996
---------------
<S> <C>
INCREASE
(DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment
income......... $ 529
Net realized
gain/(loss) on
sales of
investments.... 148
Change in net
unrealized
appreciation/(depreciation)
of investments. 266
Foreign
currency
translation.... (2)
---------------
Net increase in
net assets
resulting from
operations..... 941
Distributions to
Shareholders
From:
Net investment
income......... (529)
Realized gain on
investments.... (150)
Capital Paid-in.
---------------
Decrease in net
assets
resulting from
distributions.. (679)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold.... 19,757
Distributions
reinvested..... 679
Payment for
shares
redeemed....... (7,791)
---------------
Increase from
trust share
transactions... 12,645
---------------
NET INCREASE IN
NET ASSETS...... 12,907
NET ASSETS
Beginning of
Year...........
---------------
End of Year..... $12,907
===============
Analysis of Trust
Share
Transactions:
Sold............ 1,963
Reinvested...... 67
Redeemed........ (759)
---------------
Net increase in
shares
outstanding..... 1,271
===============
</TABLE>
(*) Commencement of investment operations.
See notes to financial statements.
28
<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 Net Asset
Value at Net Unrealized From From Net From Net From Value at
Beginning Investment Gain (Loss) on Investment Investment Gains on Capital Total End
of Period Income Investments (a) Operations Income Investments Paid-in Distributions of Period
--------- ---------- --------------- ---------- ------------ ------------ ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Year Ended December 31,
1996............ $17.37 $0.25 $2.89 $3.14 $(0.25) $(2.77) $ -- $(3.02) $17.49
1995............ 14.41 0.44 4.06 4.50 (0.44) (0.84) (0.26) (1.54) 17.37
1994............ 15.38 0.39 (0.54) (0.15) (0.39) (0.43) -- (0.82) 14.41
1993............ 14.43 0.33 1.64 1.97 (0.33) (0.69) -- (1.02) 15.38
1992............ 13.86 0.37 0.99 1.36 (0.37) (0.42) -- (0.79) 14.43
- ----------------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Year Ended December 31,
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- (0.74) 9.77
1995............ 9.19 0.71 1.03 1.74 (0.71) (0.09) -- (0.80) 10.13
1994............ 10.14 0.70 (0.95) (0.25) (0.70) -- -- (0.70) 9.19
1993............ 9.84 0.73 0.30 1.03 (0.73) -- -- (0.73) 10.14
1992............ 9.89 0.77 (0.05) 0.72 (0.77) -- -- (0.77) 9.84
- ----------------------------------------------------------------------------------------------------------------------------------
International Equities
Year Ended December 31,
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- (0.21) 16.83
1995............ 14.62 0.17 0.99 1.16 (0.16) -- (0.01) (0.17) 15.61
1994............ 15.85 0.12 (1.10) (0.98) (0.12) (0.13) -- (0.25) 14.62
1993............ 12.25 0.03 3.91 3.94 (0.03) (0.31) -- (0.34) 15.85
1992............ 12.57 0.11 (0.32) (0.21) (0.11) -- -- (0.11) 12.25
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Period from May
1, to December
31, 1996 (c).. 10.00 0.01 (0.06) (0.05) (0.02) -- -- (0.02) 9.93
- ----------------------------------------------------------------------------------------------------------------------------------
International Balanced
Period from May
1, to December
31, 1996 (c).. 10.00 0.24 0.41 0.65 (0.24) (0.02) -- (0.26) 10.39
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------
Number of Net
Shares Net Assets Operating Investment
Outstanding Total End of Period Expenses to Income to Portfolio Average
(000's Investment (000's Average Average Turnover Commission
Omitted) Return (b) Omitted) Net Assets Net Assets Rate Rate (t)
----------- ------------ ------------- -------------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Year Ended December 31,
1996............ 29,965 18.27% $524,145 0.44% 1.35% 135.98% $0.04
1995............ 21,895 31.64% 380,276 0.47% 2.70% 90.18%
1994............ 15,546 (0.98%) 223,957 0.47% 2.69% 80.51%
1993............ 9,833 13.80% 151,207 0.50% 2.21% 61.53%
1992............ 6,097 9.90% 87,952 0.52% 2.70% 65.88%
- ----------------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Year Ended December 31,
1996............ 74,315 4.10% 726,111 0.29% 7.07% 119.12% --
1995............ 69,148 19.55% 700,309 0.30% 7.20% 63.31%
1994............ 63,907 (2.57%) 587,077 0.29% 7.27% 21.80%
1993............ 61,046 10.77% 619,200 0.28% 7.22% 21.05%
1992............ 52,671 7.70% 518,341 0.30% 7.85% 19.66%
- ----------------------------------------------------------------------------------------------------------------------------------
International Equities
Year Ended December 31,
1996............ 9,254 9.19% 155,753 0.76% 1.30% 92.03% 0.02
1995............ 8,123 8.01% 126,803 0.84%(g) 1.34% 65.82%
1994............ 8,162 (6.26%) 119,331 0.85%(g) 0.85% 78.21%
1993............ 3,574 32.08% 56,652 0.85%(g) 0.26% 65.57%
1992............ 1,202 (1.60%) 14,722 0.85%(g) 0.90% 110.79%
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Period from May
1, to December
31, 1996 (c).. 2,077 (0.50%)(e) 20,633 1.00%(d)(k) 0.12%(d) 50.93%(e) 0.07
- ----------------------------------------------------------------------------------------------------------------------------------
International Balanced
Period from May
1, to December
31, 1996 (c).. 2,319 6.73%(e) 24,098 1.10%(d)(l) 3.59%(d) 22.21%(e) 0.02
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<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 Net and Total Distribution Distribution Distributions Net Asset
Value at Investment Unrealized From From Net From Net From Value at
Beginning Income Gain (Loss) on Investment Investment Gains on Capital Total End
of Period (Loss) Investments (a) Operations Income Investments Paid-in Distributions of Period
--------- ---------- --------------- ---------- ------------ ------------ ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Growth
Period from May
1, to December
31, 1996 (c).. $10.00 $0.05 $0.22 $0.27 $(0.05) -- -- $(0.05) $10.22
- ----------------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Period from May
1, to December
31, 1996 (c).. 10.00 0.16 1.22 1.38 (0.16) (0.13) -- (0.29) 11.09
- ----------------------------------------------------------------------------------------------------------------------------------
Money Market
Year Ended December 31,
1996............ 10.00 0.52 -- 0.52 (0.52) -- -- (0.52) 10.00
1995............ 10.00 0.57 -- 0.57 (0.57) -- -- (0.57) 10.00
1994............ 10.00 0.40 -- 0.40 (0.40) -- -- (0.40) 10.00
1993............ 10.00 0.30 -- 0.30 (0.30) -- -- (0.30) 10.00
1992............ 10.00 0.36 -- 0.36 (0.36) -- -- (0.36) 10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Period from May
1, to December
31, 1996 (c).. 10.00 0.04 1.57 1.61 (0.04) (0.22) -- (0.26) 11.35
- ----------------------------------------------------------------------------------------------------------------------------------
Special Opportunities
Year Ended December 31,
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- (0.67) 16.52
1995............ 9.94 (0.01) 3.58 3.57 (0.32) (0.01) (0.33) 13.18
Period from May
6, to December
31, 1994 (c).. 10.00 0.11 (0.06) 0.05 (0.11) -- (0.11) 9.94
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------
Number of Net
Shares Net Assets Operating Investment
Outstanding Total End of Period Expenses to Income to Portfolio Average
(000's Investment (000's Average Average Turnover Commission
Omitted) Return (b) Omitted) Net Assets Net Assets Rate Rate (t)
----------- ----------- ------------- -------------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Growth
Period from May
1, to December
31, 1996 (c).. $1,613 2.69%(e) $16,492 1.10%(d)(m) 0.92%(d) 71.25%(e) $0.03
- ----------------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Period from May
1, to December
31, 1996 (c).. 1,784 13.90%(e) 19,781 1.00%(d)(n) 2.74%(d) 19.95%(e) 0.03
- ----------------------------------------------------------------------------------------------------------------------------------
Money Market
Year Ended December 31,
1996............ 21,324 5.32% 213,235 0.30% 5.20% -- --
1995............ 18,591 5.78% 185,909 0.35% 5.62% --
1994............ 14,867 4.03% 148,668 0.32% 4.05% --
1993............ 11,618 3.06% 116,190 0.35% 3.01% --
1992............ 12,521 3.60% 125,212 0.34% 3.58% --
- ----------------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Period from May
1, to December
31, 1996 (c).. 963 16.18%(e) 10,926 1.05%(d)(o) 0.69%(d) 62.99%(e) 0.06
- ----------------------------------------------------------------------------------------------------------------------------------
Special Opportunities
Year Ended December 31,
1996............ 11,749 30.33% 194,108 0.84% 0.18% 217.84% 0.06
1995............ 4,133 35.96% 54,486 1.00%(h) (0.11%) 139.31%
Period from May
6, to December
31, 1994 (c).. 722 0.56%(e) 7,181 1.00%(d)(h) 1.51%(d) 26.54%(e)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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 Net Asset
Value at Net Unrealized From From Net From Net From Value at
Beginning Investment Gain (Loss) on Investment Investment Gains on Capital Total End
of Period Income Investments (a) Operations Income Investments Paid-in Distributions of Period
--------- ---------- --------------- ---------- ------------ ------------ ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Real Estate Equity
Year Ended December 31,
1996............ $11.70 $0.76 $2.97 $3.73 $(0.76) $(0.03) -- $(0.79) $14.64
1995............ 11.16 0.77 0.54 1.31 (0.77) -- -- (0.77) 11.70
1994............ 11.52 0.66 (0.34) 0.32 (0.66) (0.02) -- (0.68) 11.16
1993............ 10.27 0.52 1.26 1.78 (0.52) (0.01) -- (0.53) 11.52
1992............ 9.36 0.49 0.96 1.45 (0.49) (0.05) -- (0.54) 10.27
- ----------------------------------------------------------------------------------------------------------------------------------
Growth & Income
Year Ended December 31,
1996............ 13.94 0.34 2.43 2.77 (0.34) (1.72) -- (2.06) 14.65
1995............ 11.50 0.36 3.53 3.89 (0.36) (1.09) -- (1.45) 13.94
1994............ 12.39 0.34 (0.41) (0.07) (0.34) (0.48) -- (0.82) 11.50
1993............ 11.99 0.32 1.27 1.59 (0.32) (0.87) -- (1.19) 12.39
1992............ 12.10 0.34 0.71 1.05 (0.34) (0.82) -- (1.16) 11.99
- ----------------------------------------------------------------------------------------------------------------------------------
Managed
Year Ended December 31,
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- (1.80) 13.35
1995............ 11.96 0.62 2.56 3.18 (0.62) (0.79) -- (1.41) 13.73
1994............ 12.81 0.55 (0.83) (0.28) (0.55) (0.02) -- (0.57) 11.96
1993............ 12.41 0.52 0.90 1.42 (0.52) (0.50) -- (1.02) 12.81
1992............ 12.36 0.56 0.37 0.93 (0.56) (0.32) -- (0.88) 12.41
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term U.S. Government
Year Ended December 31,
1996............ 10.23 0.54 (0.18) 0.36 (0.54) (0.00) -- (0.54) 10.05
1995............ 9.66 0.50 0.59 1.09 (0.50) (0.02) -- (f) (0.52) 10.23
Period from May
1, to December
31, 1994 (c).. 10.00 0.37 (0.34) 0.03 (0.37) -- -- (0.37) 9.66
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------
Number of Net
Shares Net Assets Operating Investment
Outstanding Total End of Period Expenses to Income to Portfolio Average
(000's Investment (000's Average Average Turnover Commission
Omitted) Return (b) Omitted) Net Assets Net Assets Rate Rate (t)
----------- ----------- ------------- -------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Real Estate Equity
Year Ended December 31,
1996............ 10,325 33.07% $ 151,105 0.69% 6.14% 18.37% $0.04
1995............ 9,301 12.31% 108,782 0.73% 6.85% 19.81%
1994............ 10,178 2.86% 113,545 0.71% 5.94% 22.36%
1993............ 7,061 17.29% 81,306 0.83% 4.80% 9.79%
1992............ 1,672 16.00% 17,176 0.85%(i) 5.31% 16.24%
- ----------------------------------------------------------------------------------------------------------------------------------
Growth & Income
Year Ended December 31,
1996............ 139,748 20.10% 2,047,927 0.27% 2.24% 81.02% 0.04
1995............ 114,666 34.21% 1,598,585 0.28% 2.70% 73.54%
1994............ 97,361 (0.56%) 1,119,864 0.27% 2.80% 64.12%
1993............ 84,788 13.33% 1,050,349 0.28% 2.56% 70.27%
1992............ 71,833 8.90% 861,516 0.30% 2.85% 84.28%
- ----------------------------------------------------------------------------------------------------------------------------------
Managed
Year Ended December 31,
1996............ 178,745 10.72% 2,386,660 0.36% 4.41% 113.61% 0.06
1995............ 152,544 27.09% 2,093,964 0.38% 4.66% 187.67%
1994............ 134,588 (2.23%) 1,609,939 0.37% 4.50% 90.41%
1993............ 116,985 11.60% 1,498,876 0.38% 4.07% 63.74%
1992............ 82,805 7.70% 1,027,746 0.43% 4.56% 84.27%
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term U.S. Government
Year Ended December 31,
1996............ 5,840 3.61% 58,676 0.75%(j) 5.66% 20.68% --
1995............ 1,750 11.49% 17,911 0.75%(j) 5.52% 109.77%
Period from May
1, to December
31, 1994 (c).. 178 0.33%(e) 1,718 0.75%(d)(j) 5.82%(d) 11.22%(e)
- ----------------------------------------------------------------------------------------------------------------------------------
</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 Net Asset
Value at Net Unrealized From From Net From Net From Value at
Beginning Investment Gain (Loss) on Investment Investment Gains on Capital Total End
of Period Income Investments (a) Operations Income Investments Paid-in Distributions of Period
--------- ---------- --------------- ---------- ------------ ------------ ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Small Cap Value
Period from May
1, to December
31, 1996 (c).... $10.00 $0.07 $0.96 $1.03 $(0.07) $(0.23) $-- $(0.30) $10.73
- ---------------------------------------------------------------------------------------------------------------------------------
International Opportunities
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.60 0.67 (0.07) -- -- (0.07) 10.60
- ---------------------------------------------------------------------------------------------------------------------------------
Equity Index
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) 11.10
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Bond
Period from May
1, to December
31, 1996 (c).... 10.00 0.38 0.28 0.66 (0.38) (0.12) -- (0.50) 10.16
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------
Number of Net
Shares Net Assets Operating Investment
Outstanding Total End of Period Expenses to Income to Portfolio Average
(000's Investment (000's Average Average Turnover Commission
Omitted) Return (b) Omitted) Net Assets Net Assets Rate Rate (t)
----------- -------------- ------------- -------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Small Cap Value
Period from May
1, to December
31, 1996 (c).... 982 10.33%(e) $10,541 1.05%(d)(p) 1.15%(d) 66.31%(e) 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
International Opportunities
Period from May
1, to December
31, 1996 (c).... 1,689 6.72%(e) 17,898 1.25%(d)(q) 0.87%(d) 5.46%(e) 0.03
- ---------------------------------------------------------------------------------------------------------------------------------
Equity Index
Period from May
1, to December
31, 1996 (c).... 1,320 14.23%(e)(u) 14,650 0.00%(d)(r) 2.47%(d) 15.72%(e) 0.02
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Bond
Period from May
1, to December
31, 1996 (c).... 1,271 6.71%(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
period may not be in accord with the change in the aggregate gains and
losses in portfolio securities for the year because of the timing of
purchases and withdrawals of shares in relation to the fluctuating 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%, 1.13%, and 1.30%,
for the years ended December 31, 1995, 1994, 1993, and 1992, 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.
32
<PAGE>
(i) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.06% for the year ended
December 31, 1992.
(j) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .79%, 1.83%, and 13.60%, for
the year 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 1.55% 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 1.44% for the year ended
December 31, 1996.
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.34% for the 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 1.89% 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 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 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 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 1.61% 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 1.57% for the year ended
December 31, 1996.
(t) Average Commission rate is calculated for funds with a fiscal year
beginning on or after September 1, 1995.
(u) The Total Return includes the effect of the capital contribution of $0.06
per share. The Total Investment Return without the capital contribution
would have been 13.59%.
33
<PAGE>
SCHEDULE OF INVESTMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Aerospace-4.3%
Boeing Co. ............................................... 83,600 $ 8,893
United Technologies Corp. ................................ 205,000 13,530
----------
22,423
Building Products-0.2%
Masco Corp. .............................................. 27,900 1,004
Chemicals-3.6%
E.I. du Pont de Nemours & Co. ............................ 67,800 6,399
Hercules, Inc. ........................................... 28,400 1,228
Monsanto Co. ............................................. 141,900 5,516
Morton International, Inc. ............................... 78,800 3,211
PPG Industries, Inc. ..................................... 47,000 2,638
----------
18,992
Computer Software and Services-6.3%
Adobe Systems, Inc. ...................................... 52,300 1,955
Computer Associates International, Inc. .................. 84,800 4,219
Informix Corp.* .......................................... 136,800 2,787
Microsoft Corp.* ......................................... 162,600 13,435
Novell, Inc.* ............................................ 270,000 2,557
Parametric Technology Corp.* ............................. 132,400 6,802
Policy Management Systems Corp.* ......................... 33,300 1,536
----------
33,291
Diversified Operations-2.3%
Raychem Corp. ............................................ 102,400 8,205
Trinity Industries, Inc. ................................. 34,500 1,294
Unilever NV .............................................. 13,200 2,313
----------
11,812
EDP and Office Equipment-2.5%
Compaq Computer Corp.* ................................... 20,700 $ 1,537
Dell Computer Corp.* ..................................... 63,600 3,379
IBM Corp. ................................................ 16,600 2,507
Komag, Inc.* ............................................. 44,600 1,210
Pitney Bowes, Inc. ....................................... 23,700 1,292
Xerox Corp. .............................................. 55,600 2,926
----------
12,851
Electronic and Processing Equipment-10.6%
Analog Devices, Inc.* .................................... 51,600 1,748
General Electric Co. ..................................... 133,600 13,210
General Instrument Corp.* ................................ 235,300 5,088
Hewlett-Packard Co. ...................................... 186,700 9,382
Imation Corp.* ........................................... 66,700 1,876
Intel Corp. .............................................. 173,100 22,664
Mentor Graphics Corp.* ................................... 142,300 1,387
----------
55,355
Financial Services-1.2%
American Express Co. ..................................... 26,500 1,497
Dean Witter Discover & Co. ............................... 73,400 4,863
----------
6,360
Food, Beverage and Tobacco-3.3%
ConAgra, Inc. ............................................ 61,100 3,040
Philip Morris Cos., Inc. ................................. 75,800 8,537
UST, Inc. ................................................ 169,600 5,491
----------
17,068
Health Products and Services-19.7%
Abbott Laboratories ...................................... 225,300 11,434
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Health Products and Services-Continued
Allegiance Corp. ......................................... 98,900 $ 2,732
Alza Corp.* .............................................. 131,700 3,408
Amgen, Inc.* ............................................. 111,200 6,047
Becton, Dickinson & Co. .................................. 41,400 1,796
Biogen, Inc.* ............................................ 62,200 2,410
Columbia/HCA Healthcare Corp. ............................ 111,300 4,535
Glaxo Wellcome plc - ADR ................................. 167,800 5,328
Guidant Corp. ............................................ 103,600 5,905
Health Management Assoc., Inc. - Cl. A* .................. 106,200 2,390
HEALTHSOUTH Corp.* ....................................... 118,000 4,558
Johnson & Johnson ........................................ 349,900 17,408
Mallinckrodt, Inc. ....................................... 77,400 3,415
Merck & Co., Inc. ........................................ 181,100 14,352
Pfizer, Inc. ............................................. 78,300 6,489
Schering-Plough Corp. .................................... 54,800 3,548
Smithkline Beecham plc - ADR ............................. 111,800 7,602
----------
103,357
Household and Personal-3.0%
Avon Products, Inc. ...................................... 34,300 1,959
Gillette Co. ............................................. 179,200 13,933
----------
15,892
Insurance-5.0%
Cigna Corp. .............................................. 41,700 5,697
General Re Corp. ......................................... 37,800 5,963
ITT Hartford Group, Inc. ................................. 72,300 4,880
Marsh & McLennan Cos., Inc. .............................. 91,400 9,506
----------
26,046
Leisure and Recreation Products and Services-0.4%
The Walt Disney Co. ...................................... 32,700 2,277
Lodging and Restaurants-4.4%
HFS, Inc.* ............................................... 136,700 8,168
Hilton Hotels Corp. ...................................... 167,700 4,381
ITT Corp.* ............................................... 88,900 3,856
Outback Steakhouse, Inc.* ................................ 115,400 3,087
Promus Hotel Corp.* ...................................... 119,900 3,552
----------
23,044
Machinery and Equipment-1.4%
Cooper Industries, Inc. .................................. 45,400 1,912
Dover Corp. .............................................. 64,400 3,236
Duriron Co., Inc. ........................................ 24,300 659
Perkin-Elmer Corp. ....................................... 22,200 1,307
----------
7,114
Media-1.2%
McGraw-Hill Cos., Inc. ................................... 141,100 6,508
Miscellaneous-2.6%
Avery Dennison Corp. ..................................... 126,200 4,464
Crown Cork & Seal Co., Inc. .............................. 71,800 3,904
Millipore Corp. .......................................... 85,200 3,525
USA Waste Services, Inc.* ................................ 56,100 1,788
----------
13,681
Oils and Natural Gas Equipment and Services-0.9%
Baker Hughes, Inc. ....................................... 45,300 1,563
Cooper Cameron Corp.* .................................... 20,700 1,584
Rowan Cos., Inc.* ........................................ 70,500 1,595
----------
4,742
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS-Continued
JOHN HANCOCK VARIABLE SERIES TRUSTI
December 31, 1996
- -------------------------------------------------------------------------------
LARGE CAP GROWTH PORFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Oils and Natural Gas Exploration and Production-4.9%
Anadarko Petroleum Corp. ................................. 80,900 $ 5,238
Atlantic Richfield Co. ................................... 44,100 5,843
Consolidated Natural Gas Co. ............................. 26,000 1,437
Kerr-McGee Corp. ......................................... 36,100 2,599
PanEnergy Corp. .......................................... 66,100 2,975
Phillips Petroleum Co. ................................... 116,100 5,137
Unocal Corp. ............................................. 59,900 2,433
----------
25,662
Paper and Forest Products-1.0%
Kimberly-Clark Corp. ..................................... 52,700 5,020
Photography and Related Services-0.4%
Eastman Kodak Co. ........................................ 26,700 2,143
Real Estate-0.2%
Ryland Group, Inc. ....................................... 90,600 1,246
Real Estate Development-0.4%
Clayton Homes, Inc. ...................................... 99,500 1,343
Del E. Webb Corp. ........................................ 35,600 583
----------
1,926
Retail-10.8%
Federated Department Stores, Inc.* ....................... 112,900 3,853
Fruit of the Loom, Inc. - Cl. A* ......................... 131,800 4,992
Home Depot, Inc. ......................................... 242,000 12,130
Liz Claiborne, Inc. ...................................... 26,100 1,008
Lowe's Cos., Inc. ........................................ 116,300 4,129
Nike, Inc. - Cl. B ....................................... 84,300 5,037
Nine West Group, Inc.* ................................... 71,800 3,330
Price/Costco, Inc.* ...................................... 51,900 1,304
Staples, Inc.* ........................................... 383,800 6,932
TJX Cos., Inc. ........................................... 115,600 5,477
Toys "R" Us, Inc.* ....................................... 65,300 1,959
Wal-Mart Stores, Inc. .................................... 209,400 4,790
Warnaco Group, Inc. - Cl. A .............................. 64,700 1,917
----------
56,858
Telecommunications-1.3%
Lucent Technologies, Inc. ................................ 109,801 5,078
Scientific-Atlanta, Inc. ................................. 120,200 1,803
----------
6,881
Textiles-0.8%
WestPoint Stevens, Inc.* ................................. 142,800 4,230
Utilities - Telecommunications-5.0%
AT&T Corp. ............................................... 563,900 24,529
SBC Communications, Inc. ................................. 36,900 1,910
----------
26,439
----------
TOTAL COMMON STOCKS- 97.7% 512,222
Par
Value
(000's)
SHORT-TERM INVESTMENTS-2.0%
Investment in joint trading account (Note B)
6.343% due 1/02/97 ..................................... $ 10,549 10,552
---------- ----------
TOTAL INVESTMENTS- 99.7% 522,774
Cash and receivables, less payables- 0.3% 1,371
---------- ----------
NET ASSETS- 100.0% $ 524,145
========== ==========
</TABLE>
ADR-American Depository Receipt
*Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Aerospace-0.5%
Jet Equipment Trust - Cert. 1995-B 144A (a)
10.91% due 8/15/14........................................ $ 2,100 $ 2,368
Automotive and Rubber-2.4%
Ford Motor Co. - Notes
9.00% due 9/15/01......................................... 2,000 2,179
General Motors Acceptance Corp. - Med. Term Notes
7.60% due 1/09/97......................................... 5,000 5,002
7.35% due 5/22/97......................................... 4,750 4,783
General Motors Corp. - Notes
9.625% due 12/01/00....................................... 4,000 4,410
----------
16,374
Banks and Finance-2.7%
ABN Amro Bank NV (Chicago) - Global Bond
7.25% due 5/31/05......................................... 2,400 2,437
Bank of New York - Bonds 144A (a)
7.78% due 12/01/26........................................ 2,515 2,465
Chase Capital, Inc. - Unsec. Cap. Secs.
7.67% due 12/01/26........................................ 2,490 2,447
National Westminister Bank, NY - Sub. Notes
9.45% due 5/01/01......................................... 5,000 5,526
RBSG Capital Corp. - Gtd. Cap. Notes
10.125% due 3/01/04....................................... 5,000 5,827
----------
18,702
Chemicals-0.5%
Opp Petroquimica SA - Unsec. Sr. Notes 144A (a)
11.00% due 10/29/04....................................... 3,025 3,010
Diversified Operations-0.4%
Tenneco, Inc. - Debs.
10.075% due 2/01/01....................................... 2,000 2,226
Financial Services-17.8%
Access Financial Mortgage Loan Trust - Ser. 1996-4 Cl. A4
6.775% due 3/18/20........................................ $ 2,270 $ 2,269
American Express Credit Corp. - Debs.
8.625% due 5/15/22........................................ 6,000 6,274
American Express Credit Corp. - Sr. Notes
8.50% due 6/15/99......................................... 6,000 6,287
Banc One Credit Card Master Trust - Ser. 1994-B Cl. A
7.55% due 12/15/99........................................ 2,200 2,236
BankAmerica Institute - Bonds 144A (a)
8.07% due 12/31/26........................................ 2,465 2,450
Barclays North America Capital Corp. - Gtd. Bonds
9.75% due 5/15/21......................................... 4,650 5,307
Beneficial Corp. - Med. Term Notes
9.60% due 7/19/00......................................... 4,000 4,393
Commercial Credit Group, Inc. - Notes
10.00% due 5/01/99........................................ 5,000 5,393
6.00% due 4/15/00......................................... 7,000 6,905
Conseco, Inc. - Sr. Notes
10.50% due 12/15/04....................................... 3,140 3,700
Contifinancial Corp. - Sr. Notes
8.375% due 8/15/03........................................ 2,400 2,467
Contimortgage Home Equity Loan Trust - Ser. 1995-4 Cl. A7
6.95% due 1/15/14......................................... 3,000 2,952
CS First Boston - Sub. Notes 144A (a)
7.75% due 5/15/06......................................... 2,125 2,171
Fairfax Financial Holdings - Bonds
8.30% due 4/15/26......................................... 2,960 3,102
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
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
Fletcher Challenge Finance USA, Inc. - Gtd. Notes
9.80% due 6/15/98......................................... $ 5,000 $ 5,250
Green Tree Home Improvement Loan Trust - 1995-D
6.95% due 9/15/25......................................... 2,570 2,573
Harvard University - Gen'l Oblig.
8.125% due 4/15/07........................................ 5,000 5,541
MBNA Master Credit Card Trust - Asset Bkd. Ser. 1993-3
5.40% due 9/15/00......................................... 10,000 9,891
MBNA Master Credit Card Trust - Asset Bkd. Ser. 1995-D
6.05% due 6/15/00......................................... 7,000 6,955
Merrill Lynch & Co., Inc. - Med. Term Notes
7.75% due 3/01/99......................................... 3,000 3,089
Morgan Stanley Group, Inc. - Notes
8.875% due 10/15/01....................................... 3,000 3,266
Structured Assets Securities Corp. - Ser. 1993-C
6.60% due 12/25/24........................................ 6,000 5,976
Structured Assets Securities Corp. - Ser. 1993-C1
6.60% due 10/25/24........................................ 1,212 1,210
Texaco Capital, Inc. - Debs.
8.625% due 6/30/10........................................ 10,000 11,329
The Money Store Home Equity Trust - Ser. 1995-C Cl. A9
6.375% due 9/15/11........................................ 1,325 1,297
UCFC Home Equity Loan - Ser. 1996-A1
6.50% due 4/15/16......................................... 7,652 7,586
UCFC Home Equity Loan - Ser. 1996-C1 Cl. A6
7.825% due 1/15/28........................................ 3,300 3,371
United Companies Financial Corp. - Notes
7.70% due 1/15/04......................................... 2,535 2,532
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 6/30/06........................................ 2,440 2,534
----------
128,306
Food, Beverage and Tobacco-1.2%
Coca-Cola Enterprises, Inc. - Debs.
8.75% due 4/01/17......................................... $ 5,000 $ 5,234
RJR Nabisco, Inc. - Notes
7.625% due 9/15/03........................................ 2,995 2,888
----------
8,122
Foreign-10.7%
Abbey National First Capital BV - Gtd. Sub. Notes
8.20% due 10/15/04........................................ 4,000 4,296
Banco Nacional de Obras y Servicios Publicos SNC - Sr. Notes
9.625% due 11/15/03....................................... 2,610 2,623
Camuzzi Gas - Pass thru Certs. 144A (a)
9.25% due 12/15/01........................................ 1,386 1,400
Comtel Brasileira, Ltd. - Notes 144A (a)
10.75% due 9/26/04........................................ 2,005 2,065
CSW Investments - Sr. Notes 144A (a)
7.45% due 8/01/06......................................... 1,800 1,827
CSW Investments - Sr. Notes 144A (a)
6.95% due 8/01/01......................................... 2,545 2,558
Den Danske Bank - Sub. Notes 144A (a)
7.25% due 6/15/05......................................... 1,615 1,626
Enersis SA - Notes
7.40% due 12/01/16........................................ 3,490 3,398
Hydro-Quebec - Debs.
7.375% due 2/01/03........................................ 1,000 1,030
Hydro-Quebec - Debs. Ser. FV
11.75% due 2/01/12........................................ 5,000 7,024
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
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. HS
9.40% due 2/01/21......................................... $ 3,950 $ 4,757
Indah Kiat International Finance - Bonds
12.50% due 6/15/06........................................ 940 1,038
Interamerican Development Bank - Debs.
8.50% due 3/15/11......................................... 6,000 6,843
International Bank of Reconstruction & Development - Debs.
8.25% due 9/01/16......................................... 2,150 2,425
Intertek Finance plc - Sr. Sub. Notes 144A (a)
10.25% due 11/01/06....................................... 1,105 1,149
Landeskreditbank Baden Wuerttemberg - Sub. Notes
7.625% due 2/01/23........................................ 3,150 3,276
News America Holdings, Inc. - Notes
8.25% due 8/10/18......................................... 4,740 4,791
Norsk Hydro A/S - Debs.
7.50% due 10/01/16........................................ 2,375 2,431
Petroliam Nasional Berhad - Unsub. Bonds 144A (a)
7.625% due 10/15/26....................................... 2,550 2,587
Polysindo International Finance - Sr. Gtd. Notes
11.375% due 6/15/06....................................... 980 1,058
Rogers Cablesystems - Sr. Notes
10.00% due 3/15/05........................................ 3,030 3,235
Santander Finance Issuances, Ltd. - Sub. Notes
7.875% due 4/15/05........................................ 4,000 4,178
Stone Consolidated Corp. - Sr. Notes
10.25% due 12/15/00....................................... 1,100 1,166
Sun Canada Financial Co. - Bonds 144A (a)
6.625% due 12/15/07....................................... 3,345 3,208
Telewest plc - Sr. Notes
9.625% due 10/01/06....................................... 1,603 1,643
Tenaga Nasional Berhad - Notes 144A (a)
7.875% due 6/15/04........................................ 2,425 2,561
Total Access Communications plc - Bonds 144A (a)
8.375% due 11/04/06....................................... 2,890 2,909
----------
77,102
Foreign Governmental-2.9%
Manitoba Province of Canada - Debs. Ser. CD
9.25% due 4/01/20......................................... 2,000 2,447
Manitoba Province of Canada - US Debs. Ser. CK
9.00% due 12/15/00........................................ 3,000 3,266
Province of Nova Scotia - Debs.
8.75% due 4/01/22......................................... 3,000 3,490
Province of Ontario, Canada - Bonds
5.70% due 10/01/97........................................ 5,000 4,997
Province of Saskatchewan - Govt. Gtd. Bonds
9.375% due 12/15/20....................................... 1,500 1,843
Republic of Brazil - New Money Bonds
6.563% due 4/15/09........................................ 3,000 2,438
Republic of Venezuela - Debs.
6.50% due 12/18/07........................................ 1,750 1,540
----------
20,021
Government Agencies-5.3%
Federal Home Loan Mortgage Corp. - Ser. 1601 Cl. PJ
6.00% due 10/15/08 - 6/15/11........................... 12,515 11,714
Federal Home Loan Mortgage Corp.
6.50% due 12/15/23..................................... 2,725 2,544
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
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-Continued
Federal Home Loan Mortgage Corp. - Ser. 88 Cl. 88-G
8.00% due 4/15/19...................................... $ 420 $ 422
Government National Mortgage Assoc.
8.00% due 8/15/24 - 1/15/26............................ 13,307 13,573
Government National Mortgage Assoc.
8.50% due 9/15/21...................................... 2,003 2,074
Government National Mortgage Assoc.
9.00% due 5/15/21 - 8/15/21............................ 2,997 3,158
Government National Mortgage Assoc.
9.50% due 6/15/16...................................... 1,135 1,226
Resolution Trust Corp. - Ser. 1993-3
7.25% due 10/25/23..................................... 1,508 1,506
Resolution Trust Corp. - Ser. 92-C4
8.15% due 6/25/24...................................... 1,061 1,059
----------
37,276
Health Products and Services-0.3%
Smith Food & Drug Centers - Sr. Sub. Notes
11.25% due 5/15/07........................................ 1,400 1,547
Insurance-3.4%
Equitable Life Assurance Society USA - Surplus Notes 144A (a)
6.95% due 12/01/05........................................ 2,750 2,696
Liberty Mutual Insurance Co. - Notes 144A (a)
7.875% due 10/15/26....................................... 1,835 1,842
Liberty Mutual Insurance Co. - Surplus Notes 144A (a)
8.20% due 5/04/07......................................... 4,630 4,942
Massachusetts Mutual Life Insurance Co. - Surplus Notes 144A (a)
7.625% due 11/15/23....................................... 4,090 4,093
NAC Re Corp. - Notes
8.00% due 6/15/99......................................... 1,560 1,614
New York Life Insurance Co. - Surplus Notes 144A (a)
7.50% due 12/15/23........................................ $ 5,970 $ 5,694
Phoenix Home Mutual Life Insurance Co. - Notes 144A (a)
6.95% due 12/01/06........................................ 2,690 2,639
----------
23,520
Leisure and Recreation Products and Services-0.5%
Trump Holdings & Funding - Sr. Notes
15.50% due 6/15/05........................................ 2,325 2,662
Lodging and Restaurants-1.0%
Flagstar Corp. - Sr. Notes
10.75% due 9/15/01........................................ 1,645 1,505
McDonald's Corp. - Debs.
7.375% due 7/15/33........................................ 5,000 4,953
----------
6,458
Media-4.2%
Cablevision Systems Corp. - Sr. Sub. Debs.
10.75% due 4/01/04........................................ 3,025 3,138
Century Communications Corp. - Sr. Sub. Notes
11.875% due 10/15/03...................................... 3,600 3,807
Continental Cablevision - Sr. Notes
8.30% due 5/15/06......................................... 2,580 2,753
Jones Intercable, Inc. - Sr. Sub. Debs.
11.50% due 7/15/04........................................ 2,000 2,173
SFX Broadcasting, Inc. - Sr. Sub. Notes
10.75% due 5/15/06........................................ 2,080 2,200
TCI Communications, Inc. - Debs.
8.75% due 8/01/15......................................... 2,520 2,478
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
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
Time Warner, Inc. - Debs.
9.125% due 1/15/13........................................ $ 4,000 $ 4,334
TKR Cable, Inc. - Debs.
10.50% due 10/30/07....................................... 3,435 3,715
Viacom, Inc. - Sr. Notes
7.75% due 6/01/05......................................... 2,300 2,252
Viacom, Inc. - Sub. Debs.
8.00% due 7/07/06......................................... 2,500 2,392
----------
29,242
Metals and Mining-0.8%
NS Group, Inc. - Units
13.50% due 7/15/03........................................ 2,615 2,720
Weirton Steel Corp. - Sr. Notes 144A (a)
11.375% due 7/01/04....................................... 1,850 1,878
----------
4,598
Miscellaneous-0.8%
Loewen Group International, Inc. - Sr. Notes 144A (a)
8.25% due 10/15/03........................................ 3,135 3,178
Owens-Illinois, Inc. - Debs.
11.00% due 12/01/03....................................... 1,850 2,063
----------
5,241
Municipals-0.9%
New Hampshire State - Taxable Pease Dev. Auth.
7.70% due 7/01/12......................................... 3,000 3,104
Republic of NY - Bonds 144A (a)
7.53% due 12/04/26........................................ 2,490 2,441
----------
5,545
Oils and Natural Gas Equipment and Services-0.8%
Humpuss Funding Corp. - Bonds 144A (a)
7.72% due 12/15/09........................................ 2,360 2,334
Transgas de Occidente SA - Sr. Notes 144A (a)
9.79% due 11/01/10........................................ 2,730 2,844
----------
5,178
Oils and Natural Gas Exploration and Production-3.1%
Coastal Corp. - Notes
8.75% due 5/15/99......................................... 7,250 7,599
Coastal Corp. - Sr. Notes
10.00% due 2/01/01........................................ 2,500 2,787
Enserch Exploration, Inc. - Pass thru Certs. 144A (a)
7.54% due 1/02/09......................................... 2,230 2,191
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 9/15/09....................................... 3,000 3,702
Trans Texas Gas Corp. - Sr. Notes
11.50% due 6/15/02........................................ 2,060 2,227
Williams Cos., Inc. - Notes
7.50% due 9/15/99......................................... 3,000 3,081
----------
21,587
Paper and Forest Products-0.8%
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 1,971
----------
4,993
Telecommunications-1.2%
Impsat Corp. - Ser. 144A (a)
12.125% due 7/15/03....................................... 2,415 2,560
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Telecommunications-Continued
Ivaco, Inc. - Sr. Notes
11.50% due 9/15/05........................................ $ 2,460 $ 2,442
Paging Network, Inc. - Sr. Sub. Notes
10.00% due 10/15/08....................................... 2,395 2,428
Teleport Communications Group, Inc. - Sr. Notes
9.875% due 7/01/06........................................ 508 544
----------
7,974
Transportation-2.8%
America West Airlines, Inc. - Pass thru Certs.
6.93% due 1/02/08......................................... 2,274 2,254
American Car Line Co. - Equip. Cert. Ser. 1993-A
8.25% due 4/15/08......................................... 5,194 5,205
Northwest Airlines Corp. - Sec. pass thru Certs.
8.97% due 1/02/15......................................... 230 251
NWA Trust - Sr. Notes
9.25% due 6/21/14......................................... 2,544 2,896
Ryder Transportation Services, Inc. - Sr. Sub. Notes 144A (a)
10.00% due 12/01/06....................................... 1,735 1,804
U.S. Air, Inc. - Pass thru Certs. Ser. 1990-A1
11.20% due 3/19/05........................................ 1,546 1,521
Union Pacific Corp. - Med. Term Notes
9.65% due 6/01/00......................................... 5,000 5,468
----------
19,399
U.S. Governmental-17.3%
U.S. Treasury - Bonds
9.25% due 2/15/16......................................... 7,000 8,881
7.125% due 2/15/23........................................ 37,537 39,166
U.S. Treasury - Notes
6.875% due 3/31/97........................................ 7,500 7,521
6.75% due 5/31/97......................................... 7,000 7,028
8.625% due 8/15/97........................................ 2,000 2,034
9.25% due 8/15/98......................................... 4,000 4,201
4.75% due 8/31/98......................................... 15,500 15,213
8.875% due 2/15/99........................................ 11,000 11,636
9.125% due 5/15/99........................................ 2,500 2,672
7.875% due 11/15/99....................................... 1,000 1,048
7.75% due 11/30/99........................................ 13,190 13,775
8.00% due 5/15/01......................................... 7,855 8,393
7.50% due 2/15/05......................................... 2,890 3,091
----------
124,659
Utilities - Electric-8.9%
AES Corp. - Sr. Sub. Notes
10.25% due 7/15/06........................................ 1,600 1,720
BVPS II Funding Corp. - Coll. Lease Bonds
8.89% due 6/01/17......................................... 1,949 1,931
Calpine Corp. - Sr. Notes
10.50% due 5/15/06........................................ 1,920 2,030
Chugach Electric Assoc., Inc. - 1st Mtge. Bonds 1991 Ser. A
8.08% due 3/15/02......................................... 3,320 3,476
Cleveland Electric Illuminating Co. - 1st Mtge. Bonds
9.50% due 5/15/05......................................... 3,465 3,725
CTC Mansfield Funding - Debs.
10.25% due 3/30/03........................................ 2,500 2,563
CTC Mansfield Funding Corp. - Sec. Lease Oblig. Bonds
11.125% due 9/30/16....................................... 500 536
First PV Funding Corp. - Lease Oblig. Bonds
10.15% due 1/15/16........................................ 2,992 3,183
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
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........................................ $ 676 $ 719
Long Island Lighting Co. - Debs.
7.05% due 3/15/03......................................... 3,690 3,587
8.90% due 7/15/19......................................... 830 847
Long Island Lighting Co. - Gen'l. Ref. Mtge. Bonds
9.625% due 7/01/24........................................ 2,415 2,486
9.75% due 5/01/21......................................... 3,300 3,376
Midland Cogeneration Venture - Debs.
10.33% due 7/23/02........................................ 940 1,001
10.33% due 7/23/02........................................ 3,879 4,131
Midland Funding Corp. II - Debs.
11.75% due 7/23/05........................................ 1,150 1,288
Public Service Co. of Colorado - 1st Mtge. Bonds
9.875% due 7/01/20........................................ 4,500 4,987
Southwestern Public Service Co. - 1st Mtge. Bonds
6.875% due 12/01/99....................................... 3,500 3,541
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. T
11.25% due 1/15/97........................................ 2,326 2,329
Texas New Mexico Power Co. - 1st Mtge. Bonds Ser. U
9.25% due 9/15/00......................................... 8,000 8,364
Utilicorp United, Inc. - Sr. Notes
8.20% due 1/15/07......................................... 5,000 5,313
----------
63,781
Utilities - Gas-1.5%
Michigan Consolidated Gas Co. - 1st Mtge. Bonds
5.75% due 5/01/01......................................... 10,000 9,657
Utilities - Telecommunications-3.3%
Chesapeake & Potomac Telephone Co. - Notes
6.05% due 5/15/03......................................... 6,460 6,232
GTE California, Inc. - 1st Mtge. Bonds Ser. TT
6.25% due 1/15/98......................................... 3,200 3,211
GTE Corp. - Debs.
8.75% due 11/01/21........................................ 3,000 3,467
Michigan Bell Telephone Co. - Debs.
7.85% due 1/15/22......................................... 5,000 5,353
New Jersey Bell Telephone Co. - Debs.
8.00% due 6/01/22......................................... 4,000 4,362
Sprint Corp. - Notes
8.125% due 7/15/02........................................ 1,000 1,063
----------
23,688
----------
TOTAL PUBLICLY-TRADED BONDS- 92.7% 673,236
SHORT-TERM INVESTMENTS- 5.7%
Investment in joint trading account (Note B)
6.257% due 1/02/97........................................ 41,016 41,211
--------- ----------
TOTAL INVESTMENTS- 98.4% 714,447
Cash and receivables, less payables- 1.6% 11,664
--------- ----------
NET ASSETS- 100.0% $ 726,111
========= ==========
</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 December 31, 1996, these securities
aggregated $78,024 or 10.7% of the net assets of the Portfolio.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS
<S> <C> <C>
Australia-5.0%
Newcrest Mining, Ltd. (META) ........................... 400,000 $ 1,590
RGC, Ltd. (META) ....................................... 544,300 2,418
Westpac Banking Corp., Ltd. (BANK) ..................... 150,000 854
WMC, Ltd. (META) ....................................... 470,000 2,962
----------
7,824
Finland-1.7%
Amer Group, Ltd. (DIVO) ................................ 125,000 2,582
France-4.1%
Lyonnaise des Eaux SA (DIVO) ........................... 20,500 1,908
Moet Hennessy-Louis Vuitton (MISC) ..................... 16,270 4,545
----------
6,453
Germany-3.1%
Schering AG (HEAL) ..................................... 33,000 2,786
Volkswagen AG (AUTO) ................................... 5,000 2,080
----------
4,866
Hong Kong-18.0%
Cheung Kong (Holdings), Ltd. (REAL) .................... 380,000 3,378
China Resources Enterprise, Ltd. (REAL) ................ 1,550,000 3,487
Citic Pacific, Ltd. (DIVO) ............................. 630,000 3,657
First Sign International Holdings, Ltd. (HOUS) ......... 5,050,000 1,616
Hong Kong & Shanghai Hotels, Ltd. (LODG) ............... 1,079,500 2,038
HSBC Holdings plc (BANK) ............................... 147,000 3,145
Hutchison Whampoa, Ltd. (DIVO) ......................... 450,000 3,534
Joyce Boutique Holdings (RETL) ......................... 1,146,000 290
Sun Hung Kai Properties, Ltd. (REAL) ................... 275,000 3,369
Wharf (Holdings), Ltd. (REAL) .......................... 715,000 3,568
----------
28,082
Japan-25.6%
Honda Motor Co. (AUTO) ................................. 95,000 2,715
Matsushita Communication Industries (TELE) ............. 95,000 2,461
Matsushita Electric Industrial Co.* (ETRN) ............. 235,000 3,836
Matsushita-Kotobuki Electronics (ETRN) ................. 126,000 3,286
Mitsubishi Heavy Industries, Ltd. (AERO) ............... 480,000 3,813
Nippon Steel Co. (META) ................................ 940,000 2,776
Sanwa Bank (BANK) ...................................... 165,000 2,251
Sharp Corp. (ETRN) ..................................... 220,000 3,134
Shin-Etsu Chemical Co. (CHEM) .......................... 115,000 2,095
Sony Corp. (AUDI) ...................................... 57,000 3,736
Sony Music Entertainment, Inc. (AUDI) .................. 81,000 3,203
Sumitomo Sitix Corp. (MISC) ............................ 150,000 2,655
TDK Corp. (ETRN) ....................................... 61,000 3,978
----------
39,939
Malasia-3.7%
Genting Berhad (LEIS) .................................. 224,000 1,543
Sime Darby Berhad (DIVO) ............................... 665,000 2,620
United Engineers (Malaysia), Ltd. (DIVO) ............... 178,000 1,607
----------
5,770
Netherlands-1.0%
PolyGram NV (LEIS) ..................................... 29,000 1,478
Norway-0.9%
Saga Petroleum ASA (OILS) .............................. 82,000 1,355
Singapore-1.5%
Keppel Corp., Ltd. (DIVO) .............................. 180,000 1,402
Singapore Press Holdings, Ltd. (PUBL) .................. 50,000 986
----------
2,388
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
South Korea-2.2%
Commercial Bank of Korea (BANK) ........................ 340,000 $ 2,221
L.G. Construction Co. (ENGI) ........................... 62,600 1,230
----------
3,451
Sweden-2.4%
Investor AB (DIVO) ..................................... 84,000 3,714
Switzerland-4.0%
Novartis AG* (HEAL) .................................... 2,240 2,565
SMH AG (MISC) .......................................... 25,300 3,610
----------
6,175
Thailand-0.0%
Datamat Public Co., Ltd.* (ETRN) ....................... 6 0
United Kingdom-12.8%
Baltic Republic Fund, Ltd.* (FUND) ..................... 10,000 1,549
Baltic Republic Fund, Ltd. (FUND) ...................... 15,000 1,500
British Petroleum Co. plc - ADR* (OILS) ................ 250,000 2,998
DCC plc (DIVO) ......................................... 400,000 1,768
Dixons Group plc (RETL) ................................ 425,000 3,955
Marks & Spencer plc (RETL) ............................. 310,000 2,613
Pearson plc (MEDI) ..................................... 300,000 3,829
PizzaExpress plc (LODG) ................................ 100,000 904
Regal Hotel Group plc (LODG) ........................... 850,000 815
----------
19,931
United States-6.3%
Bridgestone Corp. (AUTO) ............................... 179,000 3,400
Den Norske Amerikaline AS* (TRAN) ...................... 13,500 515
PolyGram NV (LEIS) ..................................... 16,800 836
Santa Isabel SA - ADR (RETL) ........................... 54,600 1,235
Scaninavian Broadcasting Systems SA*(MEDI) ............. 30,000 521
Societe Generale Central and Eastern-European
Opportunities Fund* .................................. 12,860 1,323
Telecomunicacoes Brasileiras S/A-Telebras - ADR (TELE) .. 26,000 1,989
----------
9,819
----------
TOTAL COMMON STOCKS- 92.3% 143,827
WARRANTS-0.1%
Scania AB
expires 6/04/99 (cost $67)............................... 84 75
Par
Value
(000's)
PUBLICLY-TRADED BONDS-0.1%
U.S. Treasury - Notes
7.875% due 1/15/98 (GOVE)................................ $ 200 204
JOINT REPURCHASE AGREEMENT-7.6%
Investment in joint repurchase agreement with Lehman
Brothers dated 12/31/96 6.70% due 1/02/97 with a maturity
value of $11,833(a)........................... 11,829 11,831
------------ ----------
TOTAL INVESTMENTS- 100.1% 155,937
Payables, less cash and receivables- (0.1)% (184)
------------ ----------
NET ASSETS- 100.0% $ 155,753
============ ==========
</TABLE>
ADR-American Depository Receipt
*Non-income producing security.
(a) The repurchase agreement, dated 12/31/96, 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. (See Note B)
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
INTERNATIONAL EQUITIES PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Industry Value Securities
Industry Abbreviation (000's) at Value
<S> <C> <C> <C>
Diversified Operations........................ DIVO 22,792 15.8%
Electronic and Processing Equipment........... ETRN 14,234 9.9%
Real Estate................................... REAL 13,802 9.6%
Miscellaneous................................. MISC 10,810 7.5%
Metals and Mining............................. META 9,746 6.8%
Banks and Finance............................. BANK 8,471 5.9%
Automotive and Rubber......................... AUTO 8,195 5.7%
Retail........................................ RETL 8,093 5.6%
Audio/Video Home Products..................... AUDI 6,939 4.8%
Health Products and Services.................. HEAL 5,351 3.7%
Telecommunications............................ TELE 4,450 3.1%
Investment Companies.......................... FUND 4,372 3.0%
Oils and Natural Gas Exploration and
Production.................................... OILS 4,353 3.0%
Media......................................... MEDI 4,350 3.0%
Leisure and Recreation Products and Services.. LEIS 3,857 2.7%
Aerospace..................................... AERO 3,813 2.7%
Lodging and Restaurants....................... LODG 3,757 2.6%
Chemicals..................................... CHEM 2,095 1.4%
Household and Personal........................ HOUS 1,616 1.1%
Engineering................................... ENGI 1,230 0.9%
Publications.................................. PUBL 986 0.7%
Transportation................................ TRAN 515 0.4%
U.S. Governmental............................. GOVE 204 0.1%
========== ==========
$ 144,031 100.0 %
========== ==========
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS
<S> <C> <C>
Automotive and Rubber-1.2%
Cross-Continent Auto Retailers, Inc.* ...................... 6,200 $ 129
Gentex Corp.* .............................................. 6,000 121
--------
250
Business Services-6.7%
Accustaff, Inc.* ........................................... 2,000 42
APAC Teleservices, Inc.* ................................... 2,400 92
Concord EFS, Inc.* ......................................... 4,600 130
COREStaff, Inc.* ........................................... 4,200 99
Lamar Advertising Co.* ..................................... 5,000 121
National Processing, Inc.* ................................. 8,000 128
NFO Research, Inc. ......................................... 1,300 29
On Assignment, Inc.* ....................................... 1,900 56
Outdoor Systems, Inc.* ..................................... 4,425 124
PMT Services, Inc. ......................................... 7,500 131
Sitel Corp.* ............................................... 6,000 85
Snyder Communications, Inc.* ............................... 7,000 189
Superior Consultant Holdings Corp.* ........................ 300 7
Universal Outdoor Holdings, Inc.* .......................... 3,400 80
Whittman-Hart, Inc.* ....................................... 2,800 72
--------
1,385
Computer Software and Services-13.0%
Aspect Development, Inc. ................................... 3,800 104
Aspen Technologies, Inc.* .................................. 2,100 169
Aurum Software, Inc.* ...................................... 200 5
Baan Co., NV* .............................................. 6,000 208
BISYS Group, Inc.* ......................................... 4,300 159
CBT Group plc - ADR* ....................................... 4,000 216
Centennial Technologies, Inc.* ............................. 2,000 104
Checkfree Corp.* ........................................... 7,000 120
CyberMedia, Inc.* .......................................... 300 5
DST Systems, Inc.* ......................................... 3,900 122
E*TRADE Group, Inc.* ....................................... 9,000 104
HNC Software, Inc. ......................................... 5,200 163
Intelligroup, Inc.* ........................................ 600 7
JDA Software Group, Inc.* .................................. 6,200 177
Learning Tree International, Inc.* ......................... 3,600 106
National TechTeam, Inc.* ................................... 4,000 80
Prism Solutions, Inc.* ..................................... 10,900 90
Project Software & Development, Inc.* ...................... 3,800 161
Puma Technology, Inc.* ..................................... 2,000 35
Red Brick System, Inc.* .................................... 3,500 81
Sterling Commerce, Inc.* ................................... 2,900 102
Transaction Systems Architects, Inc. - Cl. A* .............. 5,000 166
Versant Object Technology Corp.* ........................... 5,000 93
Versatility, Inc.* ......................................... 1,000 15
Xionics Document Technologies, Inc.* ....................... 1,500 19
XLConnect Solutions, Inc.* ................................. 2,600 75
--------
2,686
EDP and Office Equipment-1.5%
Daisytek International Corp. ............................... 2,800 115
Network Appliance, Inc.* ................................... 4,000 203
--------
318
Electronic and Processing Equipment-3.7%
Comverse Technology, Inc.* ................................. 4,000 151
DuPont Photomasks, Inc.* ................................... 2,500 113
Novellus Systems, Inc.* .................................... 1,000 54
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Electronic and Processing Equipment-Continued
Special Devices, Inc.* ..................................... 5,000 $ 89
SRS Labs, Inc.* ............................................ 8,000 69
Ultrak, Inc.* .............................................. 6,800 206
Xilinx, Inc.* .............................................. 2,000 74
---------
756
Financial Services-5.5%
Aames Financial Corp. ...................................... 3,050 109
Alex. Brown, Inc. .......................................... 2,300 167
Capital One Financial Corp. ................................ 4,000 144
Delta Financial Corp.* ..................................... 3,000 54
First USA Paymentech, Inc.* ................................ 4,000 136
Hambrecht & Quist Group* ................................... 6,200 134
IMC Mortgage Co.* .......................................... 1,000 34
Inter-Regional Financial Group, Inc. ....................... 2,800 99
Medallion Financial Corp. .................................. 9,600 146
RAC Financial Group, Inc.* ................................. 5,800 123
---------
1,146
Food, Beverage and Tobacco-1.3%
Consolidated Cigar Holdings, Inc.* ......................... 4,500 111
Northland Cranberries, Inc. - Cl. A ........................ 7,000 161
---------
272
Health Products and Services-11.5%
Affymetrix, Inc.* .......................................... 5,800 117
Alkermes, Inc.* ............................................ 6,000 140
CRA Managed Care, Inc.* .................................... 2,000 90
Dura Pharmaceuticals, Inc. ................................. 5,000 238
ESC Medical Systems, Ltd. .................................. 6,000 153
Health Care & Retirement Corp.* ............................ 5,200 149
Henry Schein, Inc.* ........................................ 6,000 205
Incyte Pharmacuticals, Inc.* ............................... 2,000 103
Myriad Genetics, Inc.* ..................................... 2,900 73
National Surgery Centers, Inc. ............................. 3,900 148
NCS Healthcare, Inc. - Cl. A* .............................. 5,200 151
Parexel International Corp.* ............................... 2,900 150
PhyCor, Inc. ............................................... 1,800 51
Renal Care Group, Inc.* .................................... 2,900 92
Renal Treatment Centers, Inc.* ............................. 3,000 77
Rotech Medical Corp.* ...................................... 1,400 29
Safeskin Corp.* ............................................ 4,000 195
Sonus Pharmaceuticals, Inc.* ............................... 3,700 110
Total Renal Care Holdings, Inc.* ........................... 2,700 98
---------
2,369
Household and Personal-1.2%
Blyth Industries, Inc.* .................................... 2,800 128
Converse, Inc.* ............................................ 7,000 119
---------
247
Insurance-0.7%
HCC Insurance Holdings, Inc. ............................... 3,950 95
United Dental Care, Inc.* .................................. 1,700 52
---------
147
Leisure and Recreation Products and Services-4.4%
Cinar Films, Inc.* ......................................... 6,000 156
Dover Downs Entertainment* ................................. 6,800 122
Family Golf Centers, Inc.* ................................. 4,900 148
Premier Parks, Inc. ........................................ 4,000 129
Regal Cinemas, Inc.* ....................................... 6,550 200
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Leisure and Recreation Products and Services-Continued
Silicon Gaming, Inc.* ...................................... 9,000 $ 145
---------
900
Lodging and Restaurants-1.2%
Landry's Seafood Restaurants, Inc.* ........................ 3,300 71
Papa John's International, Inc.* ........................... 5,550 187
---------
258
Media-5.2%
Anchor Gaming* ............................................. 1,700 68
Clear Channel Communications, Inc.* ........................ 1,500 54
Cox Radio Inc. - Cl. A* .................................... 5,400 95
EZ Communications, Inc.* ................................... 4,000 147
Gray Communications System, Inc. - Cl. B ................... 5,500 94
Heftel Broadcasting Corp.* ................................. 3,500 110
Jacor Communications, Inc.* ................................ 3,000 82
Lin Television Corp.* ...................................... 4,100 173
Telemundo Group, Inc.* ..................................... 3,000 87
Univision Communications, Inc.* ............................ 4,400 163
---------
1,073
Miscellaneous-3.7%
Apollo Group, Inc. - Cl. A* ................................ 6,000 200
Catalina Marketing Corp.* .................................. 3,800 208
Central Parking Corp. ...................................... 5,000 168
Service Corp. International ................................ 3,000 84
Vans, Inc.* ................................................ 8,000 100
---------
760
Oils and Natural Gas Equipment and Services-1.4%
Newpark Resources, Inc.* ................................... 3,700 138
Pride Petroleum Services, Inc.* ............................ 6,400 149
---------
287
Oils and Natural Gas Exploration and Production-2.4%
Benton Oil & Gas Co. ....................................... 6,800 154
Forcenergy Gas Exploration, Inc. ........................... 5,200 189
Nuevo Energy Co. ........................................... 3,000 156
---------
499
Paper and Forest Products-0.7%
American Pad & Paper Co.* .................................. 6,000 136
Photography and Related Services-0.3%
Seattle Filmworks, Inc.* ................................... 3,000 61
Pollution Control Equipment and Services-0.8%
Philip Environmental, Inc.* ................................ 11,000 160
Real Estate-1.3%
Arden Realty Group, Inc. ................................... 4,300 119
Crescent Real Estate Equities, Inc. ........................ 3,000 158
---------
277
Real Estate Investment Trust-1.8%
Beacon Properties Corp. .................................... 4,000 147
Starwood Lodging Trust ..................................... 4,000 220
---------
367
Retail-8.1%
Central Garden & Pet Co.* .................................. 5,500 116
CompUSA, Inc.* ............................................. 7,600 157
Cost Plus, Inc.* ........................................... 7,000 134
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Retail-Continued
Eckerd Corp. ............................................... 1,649 $ 53
Friedman's, Inc. - Cl. A* .................................. 1,100 16
Hibbett Sporting Goods, Inc.* .............................. 5,400 78
Hot Topic, Inc.* ........................................... 4,500 89
Insight Enterprises, Inc.* ................................. 4,000 112
Lithia Motors, Inc. - Cl. A* ............................... 2,000 22
Mark Bros. Jewelers, Inc.* ................................. 6,000 70
Men's Wearhouse, Inc.* ..................................... 3,600 88
PETsMART, Inc. ............................................. 7,400 162
Quality Food Centers, Inc.* ................................ 5,000 169
Stage Stores, Inc.* ........................................ 8,000 146
Starbucks Corp.* ........................................... 4,000 115
Tiffany & Co. .............................................. 3,000 110
West Marine, Inc.* ......................................... 1,200 34
---------
1,671
Telecommunications-1.6%
Advanced Fibre Communications* ............................. 800 45
McLeod, Inc. - Cl. A* ...................................... 1,400 36
Proxim, Inc.* .............................................. 2,500 58
RMH Teleservices, Inc.* .................................... 6,100 47
Tel-Save Holdings, Inc.* ................................... 5,000 145
---------
331
Textiles-1.8%
Cutter & Buck, Inc.* ....................................... 10,700 124
Gucci Group NV ............................................. 900 57
Nautica Enterprises, Inc. .................................. 3,400 86
Tommy Hilfiger Corp.* ...................................... 2,000 96
---------
363
Utilities - Telecommunications-1.1%
ACC Corp. .................................................. 1,500 $ 45
Intermedia Communications, Inc.* ........................... 5,000 129
Worldcom, Inc. ............................................. 2,000 52
---------
226
---------
TOTAL COMMON STOCKS- 82.1% 16,945
Par
Value
(000's)
JOINT REPURCHASE AGREEMENT-18.8%
Investment in joint repurchase agreement with Lehman Brothers
dated 12/31/96 6.70% due 1/02/97 with a maturity value of
$3,881(a) ................................................... $ 3,880 3,881
--------- ---------
TOTAL INVESTMENTS- 100.9% 20,826
Payables, less cash and receivables- (0.9)% (193)
--------- ---------
NET ASSETS- 100.0% $ 20,633
========= =========
</TABLE>
ADR-American Depositary Receipt
*Non-income producing security.
(a) The repurchase agreement, dated 12/31/96, 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. (See Note B)
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Australia-2.7%
Amcor, Ltd. (PAPR)......................................... 4,000 $ 26
Boral, Ltd. (BUIL)......................................... 5,000 14
Broken Hill Proprietary Co., Ltd. (DIVO)................... 11,500 164
CRA, Ltd. (META)........................................... 3,000 47
David Jones, Ltd. (RETL)................................... 13,500 19
Lend Lease Corp. (FINL).................................... 1,400 27
M.I.M. Holdings, Ltd. (META)............................... 11,496 16
National Australia Bank, Ltd. (BANK)....................... 5,000 59
News Corp., Ltd. (MEDI).................................... 3,000 13
News Corp., Ltd. (MEDI).................................... 11,900 63
Pacific Dunlop, Ltd. (DIVO)................................ 6,700 17
Qantas Airways, Ltd. (TRAN)................................ 20,746 35
Santos, Ltd. (OILS)........................................ 8,000 32
Westpac Banking Corp., Ltd. (BANK)......................... 15,000 85
WMC, Ltd. (META)........................................... 2,800 18
Woolworth's, Ltd. (RETL)................................... 8,000 19
---------
654
Belgium-1.6%
Delhaize-Le Lion SA (RETL)................................. 550 33
Electrabel SA (UTIE)....................................... 280 66
Fortis AG (INSU)........................................... 307 49
Fortis AG* (INSU).......................................... 7 0
Groupe Bruxelles Lambert SA (FUND)......................... 160 21
Kredietbank NV (BANK)...................................... 160 52
N.V. Union Miniere SA* (META).............................. 300 20
Petrofina SA (OILS)........................................ 150 48
Societe Generale de Belgique (DIVO)........................ 200 16
Solvay SA (CHEM)........................................... 60 37
Tractebel (UTIE)........................................... 70 33
---------
375
Canada-1.5%
Alcan Aluminium, Ltd. (META)............................... 500 17
Bank of Montreal (BANK).................................... 700 22
Barrick Gold Corp. (META).................................. 600 17
BCE, Inc. (TELE)........................................... 400 19
Canadian National Railway Co. (TRAN)....................... 900 34
Canadian Pacific, Ltd. (TRAN).............................. 1,900 50
Hudson's Bay Co. (RETL).................................... 500 8
Imperial Oil, Ltd. (OILS).................................. 400 19
Moore Corp., Ltd. (EDPE)................................... 400 8
Noranda, Inc. (META)....................................... 900 20
Northern Telecom, Ltd. (TELE).............................. 200 13
NOVA Corp. (CHEM).......................................... 1,500 13
Royal Bank of Canada (BANK)................................ 800 28
Seagram Co., Ltd. (DIVO)................................... 700 28
Thomson Corp. (PUBL)....................................... 1,800 40
Transcanada Pipelines, Ltd. (OILS)......................... 1,300 23
---------
359
Finland-0.9%
Merita, Ltd.* (BANK)....................................... 6,500 20
Outokumpu OY (META)........................................ 1,000 17
Oy Nokia AB (TELE)......................................... 1,700 99
Pohjola Insurance Group (INSU)............................. 400 9
Sampo Insurance Co., Ltd. (INSU)........................... 300 24
UPM-Kymmene Corp.* (PAPR).................................. 1,700 36
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- ---------------------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
France-5.3%
Accor SA (LODG)............................................ 455 $ 58
Alcatel Alsthom (TELE)..................................... 400 32
AXA SA (INSU).............................................. 200 13
Banque Nationale de Paris (BANK)........................... 2,000 77
CEP Communications (MEDI).................................. 100 7
Colas (CONS)............................................... 100 14
Compagnie Bancaire SA (FINL)............................... 350 41
Compagnie de St. Gobain (BUIL)............................. 650 92
Compagnie de Suez SA (FINL)................................ 621 26
Compagnie Generale des Eaux (DIVO)......................... 1,012 125
Credit Local de France (FINL).............................. 700 61
Elf Aquitaine (OILS)....................................... 700 64
L'Oreal (SOAP)............................................. 50 19
Lafarge SA (BUIL).......................................... 400 24
Michelin (AUTO)............................................ 850 46
Moet Hennessy-Louis Vuitton (MISC)......................... 420 117
Pechiney SA (DIVO)......................................... 750 31
PSA Peugeot (AUTO)......................................... 1,020 115
Rhone-Poulenc (CHEM)....................................... 2,000 68
SEITA (FOOD)............................................... 400 17
Societe Generale de Paris (BANK)........................... 670 72
Total SA (OILS)............................................ 1,121 91
Union des Assurances de Paris (INSU)....................... 1,200 30
Usinor Sacilor (META)...................................... 3,400 49
---------
1,289
Germany-4.3%
Allianz AG Holding (INSU).................................. 60 109
BASF AG (CHEM)............................................. 1,100 42
Bayer AG (CHEM)............................................ 2,000 82
Bayerische Motoren Werke AG (AUTO)......................... 50 35
Commerzbank AG (BANK)...................................... 1,450 37
Daimler-Benz AG (AUTO)..................................... 800 55
Deutsche Bank AG (BANK).................................... 1,470 69
Deutsche Telekom* (UTIT)................................... 2,150 45
Henkel KGaA (CHEM)......................................... 600 30
Hochtief AG (CONS)......................................... 500 20
Hoechst AG (CHEM).......................................... 700 33
M.A.N. AG (AUTO)........................................... 80 19
Mannesmann AG (DIVO)....................................... 150 65
Metro AG* (RETL)........................................... 400 32
Muenchener Rueckversicherungs-Gesellschaft (INSU).......... 20 50
Preussag AG (META)......................................... 170 39
RWE AG (UTIE).............................................. 1,040 44
Schering AG (HEAL)......................................... 640 54
Siemens AG (ETRN).......................................... 400 19
Thyssen AG (META).......................................... 250 44
VEBA AG (UTIE)............................................. 1,120 65
Volkswagen AG (AUTO)....................................... 100 42
---------
1,030
Hong Kong-0.7%
Cheung Kong (Holdings), Ltd. (REAL)........................ 2,000 18
China Light & Power Co., Ltd. (UTIE)....................... 3,000 13
Guoco Group Ltd. (FINL).................................... 2,000 11
Hang Seng Bank, Ltd. (BANK)................................ 1,500 18
Hong Kong Telecommunications, Ltd. (TELE).................. 6,000 10
Hutchison Whampoa, Ltd. (DIVO)............................. 4,000 31
New World Development Co., Ltd. (REAL)..................... 2,000 14
Sun Hung Kai Properties, Ltd. (REAL)....................... 1,000 12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Hong Kong-Continued
Swire Pacific, Ltd. - Cl. A (DIVO)......................... 2,000 $ 19
Wharf (Holdings), Ltd. (REAL).............................. 3,000 15
---------
161
Italy-1.7%
Assicurazioni Generali (INSU).............................. 3,300 63
Edison SpA (UTIE).......................................... 2,400 15
Ente Nazionale Idrocarburi SpA (OILS)...................... 18,000 92
Fiat SpA* (AUTO)........................................... 10,000 17
Istituto Mobiliare Italiano SpA (FINL)..................... 7,500 64
Istituto Nazionale delle Assicurazioni (INSU).............. 5,000 7
Italgas SpA (UTIG)......................................... 2,000 8
La Rinascente SpA (RETL)................................... 2,300 13
Mediobanca SpA (FINL)...................................... 1,000 5
Montedison SpA* (DIVO)..................................... 47,620 32
Societa Assicuratrice Industriale (INSU)................... 2,300 8
Telecom Italia Mobile SpA (UTIT)........................... 25,000 36
Telecom Italia SpA (UTIT).................................. 20,000 39
---------
399
Japan-12.1%
Amada Co., Ltd (MACH)...................................... 5,000 39
Asahi Glass Co., Ltd. (BUIL)............................... 7,000 66
Bank of Tokyo-Mitsubishi (BANK)............................ 4,000 74
Canon Sales Co., Inc. (EDPE)............................... 1,100 25
Canon, Inc. (EDPE)......................................... 3,000 66
Citizen Watch Co., Ltd. (HOUS)............................. 5,000 36
Dai Nippon Printng Co., Ltd. (PRIN)........................ 3,000 53
Daiichi Pharm Co., Ltd. (HEAL)............................. 3,000 48
Daikin Industries, Ltd. (MACH)............................. 5,000 44
Daiwa House Industry Co., Ltd. (CONS)...................... 3,000 39
Fanuc (MACH)............................................... 2,200 70
Fujitsu, Ltd. (EDPE)....................................... 3,000 28
Hitachi, Ltd. (ETRN)....................................... 11,000 103
Honda Motor Co. (AUTO)..................................... 1,000 29
Inax Corp. (BUIL).......................................... 8,000 59
Isetan Co. (RETL).......................................... 2,000 26
Ito-Yokado Co., Ltd. (RETL)................................ 2,000 87
Kanegafuchi Chemical Industry (CHEM)....................... 3,000 15
Keio Teito Electric Railway (TRAN)......................... 6,000 29
Kinki Nippon Railway (TRAN)................................ 6,000 37
Kirin Brewery Co. (FOOD)................................... 6,000 59
Kokuyo Co. (EDPE).......................................... 1,000 25
Kuraray Co., Ltd. (TEXT)................................... 5,000 46
Maeda Road Construction (CONS)............................. 1,000 12
Matsushita Electric Industrial Co.* (ETRN)................. 9,000 147
Mitsubishi Paper Mills (PAPR).............................. 7,000 27
NGK Insulators (AUTO)...................................... 9,000 85
Nintendo Corp., Ltd. (LEIS)................................ 500 36
Nippon Meat Packers, Inc. (FOOD)........................... 3,000 39
Nippon Steel Co. (META).................................... 4,000 12
Nippondenso Co., Ltd. (ETRN)............................... 3,000 72
Okumura Corp. (CONS)....................................... 6,000 36
Osaka Gas Co. (UTIG)....................................... 24,000 66
Sankyo Co., Ltd. (HEAL).................................... 4,000 113
Sanwa Bank (BANK).......................................... 3,000 41
Secom Co. (ETRN)........................................... 1,000 61
Seino Transportion (TRAN).................................. 2,000 22
Sekisui House, Ltd. (READ)................................. 9,000 92
Shinmaywa Industries, Ltd. (AUTO).......................... 5,000 37
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Japan-Continued
Sony Corp. (AUDI).......................................... 1,800 $ 118
Sumitomo Bank (BANK)....................................... 6,000 87
Sumitomo Electric Industries (ETRN)........................ 5,000 70
Takeda Chemical Industries (HEAL).......................... 4,000 84
TDK Corp. (ETRN)........................................... 1,000 65
Tokio Marine & Fire Insurance Co. (INSU)................... 5,000 47
Tokyo Electric Power (UTIT)................................ 2,500 55
Tokyo Steel Manufacturing (META)........................... 4,000 57
Tonen Corp. (OILS)......................................... 3,000 35
Toray Industries, Inc. (CHEM).............................. 22,000 136
Toshiba Corp. (ETRN)....................................... 13,000 82
Toyo Suisan Kaisha (FOOD).................................. 3,000 30
Toyota Motor Corp. (AUTO).................................. 1,000 29
Yamazaki Baking Co., Ltd. (FOOD)........................... 2,000 32
---------
2,928
Malasia-0.8%
Hume Industries (Malaysia) Berhad (BUIL)................... 3,000 19
Kuala Lumpur Kepong Berhad (DIVO).......................... 7,000 18
Land & General Berhad (DIVO)............................... 6,000 14
Malayan Banking Berhad (BANK).............................. 1,400 16
Malaysia International Shipping Berhad (TRAN).............. 4,000 12
Nestle (Malaysia) Berhad (FOOD)............................ 1,000 8
Public Bank Berhad (BANK).................................. 8,000 17
Resorts World Berhad (LEIS)................................ 2,000 9
Sime Darby Berhad (DIVO)................................... 6,000 24
Telekom Malaysia Berhad (TELE)............................. 1,000 9
Tenaga Nasional Berhad (UTIE).............................. 7,000 34
YTL Corp. Berhad (DIVO).................................... 2,000 11
---------
191
Netherlands-2.2%
ABN Amro Holding NV (BANK)................................. 1,028 $ 67
Akzo Nobel NV (CHEM)....................................... 130 18
DSM NV (CHEM).............................................. 300 30
ING Groep NV (BANK)........................................ 3,096 112
KLM Royal Dutch Air Lines NV (TRAN)........................ 600 17
Koninklijke Nederlandsche Hoogovens NV (META).............. 400 17
Koninklijke PTT Nederland NV (TELE)........................ 1,727 66
Philips Electronics NV (ETRN).............................. 900 36
Unilever NV (FOOD)......................................... 600 106
Vendex Internationa NV (RETL).............................. 907 39
VNU-Verenigde Nederlandse Uitgeversbedrijven Verenigd
Bezit (PUBL)............................................. 1,500 31
---------
539
New Zealand-1.8%
Brierley Investments, Ltd. (FUND).......................... 71,400 66
Carter Holt Harvey, Ltd. (PAPR)............................ 26,000 59
Fletcher Challenge Building (BUIL)......................... 6,000 18
Fletcher Challenge Energy (OILS)........................... 6,000 17
Fletcher Challenge Forests (PAPR).......................... 18,500 31
Fletcher Challenge Paper (PAPR)............................ 13,500 28
Telecom Corp. of New Zealand (UTIT)........................ 43,000 219
---------
438
Singapore-0.0%
Jardine Matheson Holdings, Ltd.* (DIVO).................... 1,200 8
Spain-1.9%
Acerinox SA (META)......................................... 100 14
Banco Bilbao Vizcaya SA (BANK)............................. 600 32
Banco Central Hispanoamericano (BANK)...................... 600 15
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Spain-Continued
Banco Intercontinental Espanol (BANK)...................... 140 $ 22
Banco Popular Espanol SA (BANK)............................ 130 26
Banco Santander SA (BANK).................................. 550 35
Corporacion Mapfre (INSU).................................. 200 12
Empresa Nacional de Electricidad SA* (UTIE)................ 800 57
Fomento de Construcciones y Contratas SA (CONS)............ 200 19
Gas Natural SDG (UTIG)..................................... 100 23
Iberdrola SA (UTIE)........................................ 4,400 62
Repsol SA (OILS)........................................... 1,000 38
Sevillana De Electricidad (UTIE)........................... 969 11
Telefonica de Espana (UTIT)................................ 2,600 60
Vallehermoso SA (READ)..................................... 400 9
Viscofan Industria Navarra de Envolturas Celulosicas
SA (FOOD)................................................ 800 12
---------
447
Switzerland-1.1%
ABB AG (MACH).............................................. 13 16
CS Holding AG (BANK)....................................... 140 14
Nestle SA (FOOD)........................................... 75 81
Novartis AG* (HEAL)........................................ 56 64
Roche Holdings AG (HEAL)................................... 6 47
Schweizerische Bankgesellschaft (BANK)..................... 10 9
SGS Societe Generale de Surveillance Holding SA (MISC)..... 4 10
Zurich Versicherungsgesellschaft (INSU).................... 90 25
---------
266
United Kingdom-11.4%
Abbey National First Capital BV (BANK)..................... 3,000 39
B.A.T. Industries plc (FOOD)............................... 15,400 128
Bank of Scotland (BANK).................................... 5,000 26
Bass plc - ADR (LODG)...................................... 2,300 32
Booker plc (FOOD).......................................... 2,300 16
British Energy plc (UTIE).................................. 23,000 58
British Gas plc (UTIG)..................................... 28,500 109
British Petroleum Co. plc - ADR* (OILS).................... 10,521 126
British Steel plc (META)................................... 21,800 60
British Telecommunications plc (TELE)...................... 28,000 189
Charter plc (DIVO)......................................... 2,736 35
Coats Viyella plc (TEXT)................................... 11,500 26
FKI plc (MACH)............................................. 9,500 33
General Electric Co. plc (ETRN)............................ 23,400 154
Glaxo Wellcome plc - ADR (HEAL)............................ 3,300 54
Grand Metropolitan plc (FOOD).............................. 17,800 140
Guinness plc (FOOD)........................................ 11,000 86
Hanson plc (DIVO).......................................... 23,000 32
Hillsdown Holdings plc (FOOD).............................. 17,000 58
House of Fraser plc (RETL)................................. 18,000 47
HSBC Holdings plc (BANK)................................... 4,000 89
Imperial Chemical Industries plc (CHEM).................... 1,000 13
J. Sainsbury plc (FOOD).................................... 7,000 46
Jefferson Smurfit Group plc (MISC)......................... 8,000 23
Legal & General Group plc (INSU)........................... 7,500 48
Lloyds TSB Group plc (BANK)................................ 23,000 170
Marks & Spencer plc (RETL)................................. 10,000 84
Mirror Group plc (PUBL).................................... 8,000 29
National Power plc (UTIE).................................. 5,500 46
National Westminster Bank plc (BANK)....................... 3,500 41
Northern Foods plc (FOOD).................................. 10,000 35
Peninsular & Oriental Steam Navigation Co. (TRAN).......... 9,500 96
Reckitt & Colman plc (HOUS)................................ 1,425 18
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
United Kingdom-Continued
Redland plc (BUIL)......................................... 3,000 $ 19
RJB Mining plc (META)...................................... 7,500 55
Royal & Sun Alliance Insurance Group plc (INSU)............ 4,801 37
RTZ Corp. plc (META)....................................... 4,900 79
Scottish Hydro-Electric plc (UTIE)......................... 9,900 55
Sears plc (RETL)........................................... 21,000 34
Sedgwick Group plc (INSU).................................. 13,500 30
Smithkline Beecham plc (HEAL).............................. 6,000 83
Tesco plc (RETL)........................................... 6,000 36
Thames Water plc (WATR).................................... 4,000 42
Unilever plc (FOOD)........................................ 2,000 48
Vodafone Group plc (TELE).................................. 5,500 23
Yorkshire Water plc (WATR)................................. 2,000 24
--------
2,751
United States-1.1%
Royal Dutch Petroleum Co. (OILS)........................... 1,600 273
--------
TOTAL COMMON STOCKS- 51.1% 12,313
<CAPTION>
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Belgium-1.7%
Belgium Kingdom - Bonds (GOVA)
9.00% due 3/28/03........................................ $ 5,000 189
Belgium Kingdom - Debs. (GOVA)
7.25% due 4/29/04....................................... 6,000 209
--------
398
Camada-6.1%
Government of Canada - Debs. (GOVA)
6.50% due 6/01/04........................................ 1,280 954
4.25% due 12/01/21....................................... 635 510
--------
1,464
Denmark-4.2%
Kingdom of Denmark - Bonds (GOVA)
8.00% due 5/15/03........................................ 5,400 1,016
France-5.2%
Government of France - Debs. (GOVA)
6.75% due 10/25/04....................................... 6,000 1,253
Germany-9.3%
Federal Republic of Germany - Bonds (GOVA)
7.125% due 12/20/01...................................... 3,140 2,244
Italy-4.7%
Republic of Italy - Bonds (GOVA)
9.50% due 2/01/01........................................ 1,550,000 1,123
Netherlands-5.9%
Netherlands Government - Debs. (GOVA)
7.75% due 3/01/05........................................ 2,150 1,421
Sweden-1.1%
Swedish Government - Debs. (GOVA)
6.00% due 2/09/05........................................ 1,900 270
United Kingdom-4.0%
Conversion - Bonds (GOVA)
9.50% due 10/25/04....................................... 390 748
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
United Kingdom-Continued
U.K. Treasury - Bonds (GOVA)
9.00% due 10/13/08....................................... $ 115 $ 219
---------
967
---------
TOTAL PUBLICLY-TRADED BONDS- 42.2% 10,156
COMMERCIAL PAPER-3.2%
Duracell
6.75% due 1/02/97........................................ 773 775
Shares
WARRANTS
La Rinascente SpA
expires 11/30/99......................................... 115 0
Societe Generale de Belgique
expires 11/30/99......................................... 70 1
---------
TOTAL WARRANTS- 0.0% 1
----------- ---------
TOTAL INVESTMENTS- 96.5% 23,245
Cash and receivables, less payables- 3.5% 853
----------- ---------
NET ASSETS- 100.0% $ 24,098
=========== =========
</TABLE>
ADR-American Depository Receipt
See notes to financial statements.
* Non-income producing security.
<TABLE>
<CAPTION>
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Industry Value Securities
Industry Abbreviation (000's) at Value
<S> <C> <C> <C>
Governmental.............................. GOVA 10,156 45.2%
Banks and Finance......................... BANK 1,471 6.6%
Oils and Natural Gas Exploration and
Production................................ OILS 858 3.8%
Food, Beverage and Tobacco................ FOOD 835 3.7%
Electronic and Processing Equipment....... ETRN 809 3.6%
Diversified Operations.................... DIVO 776 3.4%
Utilities - Electric...................... UTIE 614 2.8%
Metals and Mining.......................... META 598 2.7%
Insurance................................. INSU 561 2.5%
Health Products and Services.............. HEAL 547 2.4%
Chemicals................................. CHEM 517 2.3%
Automotive and Rubber..................... AUTO 509 2.3%
Retail.................................... RETL 477 2.0%
Telecommunications........................ TELE 460 2.0%
Utilities - Telecommunications............ UTIT 399 1.8%
Transportation............................ TRAN 332 1.5%
Building Products......................... BUIL 311 1.4%
Financial Services........................ FINL 235 1.0%
Paper and Forest Products................. PAPR 207 0.9%
Utilities - Gas........................... UTIG 206 0.9%
Machinery and Equipment................... MACH 202 0.9%
EDP and Office Equipment.................. EDPE 152 0.7%
Miscellaneous............................. MISC 150 0.7%
Construction.............................. CONS 140 0.6%
Audio/Video Home Products................. AUDI 118 0.5%
Real Estate Development................... READ 101 0.5%
Publications.............................. PUBL 100 0.5%
Lodging and Restaurants................... LODG 90 0.4%
Investment Companies...................... FUND 87 0.4%
Media..................................... MEDI 83 0.4%
Textiles.................................. TEXT 72 0.3%
Water and Water Treatment Services........ WATR 66 0.3%
Real Estate............................... REAL 59 0.3%
Household and Personal.................... HOUS 54 0.2%
Printing.................................. PRIN 53 0.2%
Leisure and Recreation Products and
Services.................................. LEIS 45 0.2%
Soap, Cosmetics and Personal Care......... SOAP 19 0.1%
============ =======
$ 22,469 100.0%
============ =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Automotive and Rubber-0.5%
APS Holding Corp.* ......................................... 5,075 $ 79
Banks and Finance-0.5%
Fifth Third Bancorp ........................................ 1,200 75
First Empire State Corp. ................................... 25 7
--------
82
Business Services-6.0%
Coinmach Laundry Corp.* .................................... 13,900 250
Concord EFS, Inc.* ......................................... 3,150 89
Paychex, Inc. .............................................. 2,325 120
Profit Recovery Group International, Inc.* ................. 11,725 188
Robert Half International, Inc.* ........................... 3,400 117
TeleTech Holdings, Inc.* ................................... 8,675 226
--------
990
Computer Software and Services-0.0%
Sanchez Computer Associates, Inc.* ......................... 245 2
Diversified Operations-3.3%
Rentokil Initial plc ....................................... 72,889 549
Electronic and Processing Equipment-2.5%
Littelfuse, Inc.* .......................................... 6,125 297
Safeguard Scientifics, Inc.* ............................... 3,725 118
--------
415
Financial Services-3.5%
Associates First Capital Corp. ............................. 6,550 289
Charles Schwab Corp. ....................................... 5,300 170
First USA Paymentech, Inc.* ................................ 3,175 108
Medallion Financial Corp. .................................. 500 8
--------
575
Health Products and Services-4.1%
Boston Scientific Corp.* ................................... 2,625 158
Depotech Corp.* ............................................ 4,975 81
Forest Laboratories, Inc.* ................................. 2,525 83
Fresenius Medical Care AG - ADR* ........................... 4,150 117
Karrington Health, Inc.* ................................... 2,575 32
Omnicare, Inc. ............................................. 3,625 116
Sunrise Assisted Living, Inc.* ............................. 3,525 98
--------
685
Insurance-2.6%
Protective Life Corp. ...................................... 6,075 242
UICI* ...................................................... 5,825 189
--------
431
Leisure and Recreation Products and Services-3.6%
Family Golf Centers, Inc.* ................................. 11,625 350
Premier Parks, Inc. ........................................ 7,475 240
--------
590
Lodging and Restaurants-17.6%
Choice Hotels International, Inc.* ......................... 9,350 165
Doubletree Corp.* .......................................... 2,975 134
HFS, Inc.* ................................................. 12,700 759
J.D. Wetherspoon plc ....................................... 38,888 773
Papa John's International, Inc.* ........................... 15,312 517
PizzaExpress plc ........................................... 51,374 464
Planet Hollywood International, Inc.* ...................... 4,475 88
--------
2,900
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- ----------------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Media-2.9%
CUC International, Inc.* ................................... 15,912 $ 378
Univision Communications, Inc.* ............................ 2,625 97
--------
475
Metals and Mining-1.2%
Minerals Technologies, Inc. ................................ 4,950 203
Miscellaneous-3.7%
Apollo Group, Inc. - Cl. A* ................................ 1,025 34
Sealed Air Corp.* .......................................... 7,475 311
Trigen Energy Corp. ........................................ 8,925 257
--------
602
Photography and Related Services-0.7%
Grand Optical Photoservice ................................. 722 117
Pollution Control Equipment and Services-2.0%
Culligan Water Technologies, Inc.* ......................... 7,975 323
Real Estate-3.3%
Insignia Financial Group, Inc. - Cl. A ..................... 24,350 548
Retail-22.6%
Barnett, Inc.* ............................................. 18,300 499
Fastenal Co. ............................................... 24,750 1,131
Global DirectMail Corp.* ................................... 16,950 739
MSC Industrial Direct Co., Inc.* ........................... 4,000 148
O'Reilly Automotive, Inc.* ................................. 4,400 141
Pet Food Warehouse, Inc.* .................................. 25,000 105
Petco Animal Supplies, Inc.* ............................... 24,975 518
Viking Office Products, Inc.* .............................. 16,850 450
--------
3,731
Telecommunications-7.1%
Cincinnati Bell, Inc. ...................................... 1,350 83
Millicom International Cellular SA* ........................ 3,675 118
Omnipoint Corp.* ........................................... 8,150 157
Paging Network, Inc.* ...................................... 45,075 687
PriCellular Corp. - Cl. A .................................. 10,437 120
--------
1,165
Transportation-3.4%
Wisconsin Central Transportation Corp.* .................... 14,025 556
Water and Water Treatment Services-1.3%
Cuno, Inc.* ................................................ 14,800 220
--------
TOTAL COMMON STOCKS- 92.4% 15,238
WARRANTS-0.1%
Littelfuse, Inc.
expires 12/27/01 (Cost $11) ............................... 350 14
</TABLE>
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
GOVERNMENT AGENCY SHORT-TERM NOTES-12.7%
Federal Home Loan Mortgage Corp.
6.50% due 1/02/97.......................................... $ 2,100 2,100
-------- --------
TOTAL INVESTMENTS- 105.2% 17,352
Payables, less cash and receivables- (5.2)% (860)
-------- --------
NET ASSETS- 100.0% $ 16,492
======== ========
</TABLE>
ADR-American Depository Receipt
*Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Automotive and Rubber-1.5%
Eaton Corp. ................................................ 1,600 $ 112
Ford Motor Co. ............................................. 2,200 70
General Motors Corp. ....................................... 1,000 56
Genuine Parts Co. .......................................... 1,200 53
---------
291
Banks and Finance-9.9%
Banc One Corp. ............................................. 2,100 90
BankBoston Corp. ........................................... 2,100 135
Bankers Trust New York Corp. ............................... 1,500 129
Chase Manhattan Corp. ...................................... 3,300 294
Fleet Financial Group, Inc. ................................ 2,700 135
J.P. Morgan & Co., Inc. .................................... 2,400 234
Mellon Bank Corp. .......................................... 4,400 311
Mercantile Bankshares Corp. ................................ 1,500 48
National City Corp. ........................................ 2,800 126
PNC Bank Corp. ............................................. 3,200 120
Signet Banking Corp. ....................................... 2,000 62
U.S. Bancorp ............................................... 2,000 90
Wells Fargo & Co. .......................................... 700 189
---------
1,963
Building Products-0.2%
Armstrong World Industries, Inc. ........................... 700 49
Business Services-0.4%
ACNielson Corp.* ........................................... 1 0
Dun & Bradstreet Corp.* .................................... 3,200 76
---------
76
Chemicals-5.3%
Betzdearborn, Inc. ......................................... 2,300 135
Dow Chemical Co. ........................................... 2,500 196
E.I. du Pont de Nemours & Co. .............................. 2,500 235
FMC Corp.* ................................................. 600 42
Great Lakes Chemical Corp. ................................. 2,900 136
Lubrizol Corp. ............................................. 2,500 78
Nalco Chemical Co. ......................................... 3,300 119
Witco Corp. ................................................ 3,600 110
---------
1,051
Diversified Operations-4.6%
American Brands, Inc. ...................................... 3,500 174
Corning, Inc. .............................................. 3,400 157
Echelon International Corp., Inc.* ......................... 146 2
Frontier Corp. ............................................. 3,000 68
Lonrho plc ................................................. 18,500 40
Minnesota Mining & Manufacturing Co. ....................... 2,100 174
Sara Lee Corp. ............................................. 1,800 67
Unilever NV ................................................ 900 158
Western Resources, Inc. .................................... 2,600 80
---------
920
EDP and Office Equipment-0.2%
Pitney Bowes, Inc. ......................................... 800 44
Electronic and Processing Equipment-3.2%
AMP, Inc. .................................................. 2,000 77
General Electric Co. ....................................... 3,600 355
Honeywell, Inc. ............................................ 1,100 72
Hubbell, Inc. - Cl. B ...................................... 2,900 125
---------
629
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Financial Services-2.2%
American Express Co. ....................................... 3,100 $ 175
H & R Block, Inc. .......................................... 4,500 131
Student Loan Marketing Assoc. .............................. 1,300 121
---------
427
Food, Beverage and Tobacco-7.0%
Anheuser-Busch Cos., Inc. .................................. 3,900 156
Fleming Cos., Inc. ......................................... 1,100 19
General Mills, Inc. ........................................ 4,000 253
Grand Metropolitan plc - ADR ............................... 2,400 76
H.J. Heinz Co. ............................................. 4,100 147
Kellogg Co. ................................................ 1,500 98
McCormick & Co., Inc. ...................................... 5,500 130
Philip Morris Cos., Inc. ................................... 1,100 124
Quaker Oats Co. ............................................ 5,600 214
RJR Nabisco Holdings Corp. ................................. 1,600 54
UST, Inc. .................................................. 3,400 110
---------
1,381
Government Agencies-0.7%
Federal National Mortgage Assoc. ........................... 3,700 138
Health Products and Services-7.1%
Abbott Laboratories ........................................ 2,900 147
American Home Products Corp.* .............................. 3,800 223
Bausch & Lomb, Inc. ........................................ 3,300 116
Baxter International, Inc. ................................. 3,100 127
C.R. Bard, Inc. ............................................ 2,300 64
Novartis AG* ............................................... 137 157
Pharmacia & Upjohn, Inc. ................................... 5,000 198
SmithKline Beecham plc - ADR ............................... 2,000 136
Warner-Lambert Co. ......................................... 3,300 247
---------
1,415
Household and Personal-0.6%
Whirlpool Corp. ............................................ 2,600 121
Insurance-4.9%
Alexander & Alexander Services, Inc. ....................... 3,200 56
American General Corp. ..................................... 4,600 188
Hilb, Rogal & Hamilton Co. ................................. 1,200 16
Lincoln National Corp. ..................................... 1,200 63
Provident Cos., Inc. ....................................... 1,300 63
Safeco Corp. ............................................... 2,100 83
St. Paul Cos., Inc. ........................................ 2,800 164
Travelers Group, Inc. ...................................... 4,300 195
USF & G Corp. .............................................. 3,100 65
Willis Corroon Group plc ................................... 7,100 82
---------
975
Lodging and Restaurants-0.7%
ITT Corp.* ................................................. 3,200 139
Machinery and Equipment-0.9%
Cooper Industries, Inc. .................................... 3,500 147
McDermott International, Inc. .............................. 1,300 22
---------
169
Media-1.7%
Dow Jones & Co., Inc. ...................................... 3,500 119
Gannett Co., Inc. .......................................... 1,500 112
McGraw-Hill Cos., Inc. ..................................... 2,400 111
---------
342
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <S> <C>
COMMON STOCKS-CONTINUED
Metals and Mining-1.3%
Newmont Mining Corp. ....................................... 2,600 $ 116
Reynolds Metals Co. ........................................ 2,400 135
---------
251
Miscellaneous-0.7%
Brown-Forman Corp. - Cl. B ................................. 2,900 133
Oils and Natural Gas Exploration and Production-10.2%
Amoco Corp. ................................................ 1,800 145
Atlantic Richfield Co. ..................................... 2,200 291
British Petroleum Co. plc - ADR ............................ 1,400 198
Chevron Corp. .............................................. 3,100 202
Exxon Corp. ................................................ 3,200 313
Mobil Corp. ................................................ 1,200 147
Repsol SA - ADR ............................................ 2,900 111
Royal Dutch Petroleum Co. .................................. 1,300 222
Sun Co., Inc. .............................................. 1,000 24
Texaco, Inc. ............................................... 2,400 236
Transcanada Pipelines, Ltd. ................................ 1,100 19
USX-Marathon Group ......................................... 4,600 110
---------
2,018
Paper and Forest Products-3.7%
Consolidated Papers, Inc. .................................. 1,800 88
Georgia Pacific Corp. ...................................... 2,600 187
International Paper Co. .................................... 2,900 117
James River Corp. of Virginia .............................. 1,600 53
Kimberly-Clark Corp. ....................................... 900 86
Union Camp Corp. ........................................... 4,300 205
---------
736
Photography and Related Services-0.4%
Eastman Kodak Co. .......................................... 900 72
Printing-0.7%
Deluxe Corp. ............................................... 1,400 46
R.R. Donnelley & Sons Co. .................................. 3,000 94
---------
140
Publications-0.7%
Readers Digest Association, Inc. - Cl. A ................... 3,300 133
Real Estate Development-0.1%
Rouse Co. .................................................. 900 29
Real Estate Investment Trust-1.7%
Security Capital Pacific Trust ............................. 600 14
Simon DeBartolo Group, Inc. ................................ 8,596 265
Weingarten Realty Investors ................................ 1,300 53
---------
332
Retail-1.5%
Hancock Fabrics, Inc. ...................................... 100 1
J.C. Penney, Inc. .......................................... 3,900 190
May Department Stores Co. .................................. 2,100 98
---------
289
Soap, Cosmetics and Personal Care-1.6%
International Flavors & Fragrances, Inc. ................... 4,400 198
Tambrands, Inc. ............................................ 3,100 127
---------
325
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Transportation-1.3%
Alexander & Baldwin, Inc. .................................. 1,600 $ 40
Conrail, Inc. .............................................. 459 46
GATX Corp. ................................................. 1,600 78
Union Pacific Corp. ........................................ 1,500 90
---------
254
Utilities - Electric-6.3%
Baltimore Gas & Electric Co. ............................... 1,700 45
Centerior Energy Corp. ..................................... 7,300 78
Dominion Resources, Inc. ................................... 3,500 135
DQE, Inc. .................................................. 1,300 38
Duke Power Co. ............................................. 1,200 56
Edison International ....................................... 2,400 48
Entergy Corp. .............................................. 3,700 103
Florida Progress Corp. ..................................... 2,200 71
GPU, Inc. .................................................. 1,000 34
Ohio Edison Co. ............................................ 2,000 46
Pacific Gas & Electric Co. ................................. 3,500 74
PacifiCorp ................................................. 6,100 125
Peco Energy Co. ............................................ 4,800 121
Public Services Enterprise Group, Inc. ..................... 2,600 71
Southern Co. ............................................... 2,000 45
Unicom Corp. ............................................... 5,500 149
---------
1,239
Utilities - Telecommunications-6.8%
Alltel Corp. ............................................... 5,800 182
AT & T Corp. ............................................... 5,900 256
BCE, Inc. .................................................. 2,800 134
Bell Atlantic Corp. ........................................ 2,100 136
BellSouth Corp. ............................................ 3,600 145
GTE Corp. .................................................. 3,200 146
Pacific Telesis Group ...................................... 2,400 88
SBC Communications, Inc. ................................... 1,700 88
Southern New England Telecommunications Corp. .............. 1,800 70
U.S. West Communications Group ............................. 3,300 106
---------
1,351
---------
TOTAL COMMON STOCKS- 88.1% 17,432
<CAPTION>
Par
Value
(000's)
PUBLICLY-TRADED BONDS
U.S. Governmental-2.5%
U.S. Treasury - Notes
6.50% due 5/31/01.......................................... $ 200 202
5.75% due 8/15/03.......................................... 150 146
7.00% due 7/15/06.......................................... 150 156
---------
TOTAL PUBLICLY-TRADED BONDS- 2.5% 504
COMMERCIAL PAPER
Caisse D'Amortissement
5.55% due 1/27/97.......................................... 600 598
Corporate Asset Funding Co.
5.38% due 1/17/97.......................................... 322 321
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
COMMERCIAL PAPER-CONTINUED
Electronic Data Systems Corp.
5.80% due 1/09/97.......................................... $ 570 $ 569
KFW International Finance
5.41% due 1/09/97.......................................... 600 599
---------
TOTAL COMMERCIAL PAPER- 10.6% 2,087
GOVERNMENT AGENCY SHORT-TERM NOTES-1.1%
Federal Home Loan Mortgage Corp.
5.50% due 1/09/97.......................................... 221 221
Shares
WARRANTS-0.0%
Homestead Village, Inc.
expires 10/29/97 (Cost $1)................................. 0 0
--------- ---------
TOTAL INVESTMENTS- 102.3% 20,244
Payables, less cash and receivables- (2.3)% (463)
--------- ---------
NET ASSETS- 100.0% $ 19,781
========= =========
</TABLE>
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Par
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
CERTIFICATES OF DEPOSIT-3.3%
Banks and Finance-3.3%
Fuji Bank, Ltd.
5.56% due 2/18/97......................................... $ 7,000 $ 7,081
COMMERCIAL PAPER
Automotive and Rubber-3.2%
Bridgestone/Firestone, Inc.
6.05% due 2/13/97......................................... 1,000 993
General Motors Acceptance Corp.
5.44% due 4/01/97......................................... 4,000 3,946
Yamaha Motor Finance Corp.
5.72% due 2/14/97......................................... 2,000 1,986
----------
6,925
Banks and Finance-2.8%
MBNA America Bank NA
5.43% due 1/21/97......................................... 6,000 6,040
Diversified Operations-0.5%
Mitsui & Co., Inc. USA
5.60% due 3/04/97......................................... 1,000 990
Engineering-2.3%
Shimizu International Finance USA
5.52% due 3/14/97......................................... 5,000 4,945
Financial Services-63.2%
Alpine Securitization Corp.
5.57% due 1/15/97......................................... 3,759 3,751
Broadway Capital Corp.
5.60% due 2/18/97......................................... 465 462
5.60% due 3/12/97......................................... 3,000 2,967
BTM Capital Corp.
5.40% due 1/27/97......................................... 5,000 4,981
5.37% due 2/07/97......................................... 1,500 1,492
Enterprise Funding Corp.
5.52% due 1/27/97......................................... 7,706 7,675
Falcon Asset Securitization
5.32% due 1/21/97......................................... 1,348 1,344
5.65% due 1/27/97......................................... 8,000 7,967
First Boston Corp.
5.33% due 1/30/97......................................... 5,000 4,979
Goldman Sachs Group LP
5.43% due 1/16/97......................................... 2,272 2,267
Iris Partners LP
5.40% due 2/04/97......................................... 500 497
5.40% due 2/19/97......................................... 3,500 3,474
Lehman Brothers Holdings, Inc.
5.50% due 1/24/97......................................... 9,000 8,968
Merrill Lynch & Co., Inc.
5.34% due 1/27/97......................................... 3,500 3,487
5.33% due 3/27/97......................................... 6,000 5,924
Mitsui & Co., Ltd.
5.36% due 1/06/97......................................... 1,000 999
Monte Rosa Capital Corp.
5.80% due 1/09/97......................................... 9,000 8,988
Orix America, Inc.
5.40% due 1/02/97......................................... 500 500
5.60% due 2/04/97......................................... 1,448 1,440
5.43% due 3/03/97......................................... 3,000 2,972
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Par
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
COMMERCIAL PAPER-CONTINUED
Financial Services-Continued
PHH Group, Inc.
5.35% due 1/22/97......................................... $ 8,000 $ 7,975
5.37% due 1/30/97......................................... 3,000 2,987
Rank Xerox Capital Europe plc
6.95% due 1/02/97......................................... 3,000 2,999
Receivables Capital Corp.
5.35% due 1/06/97......................................... 6,000 5,996
5.47% due 1/17/97......................................... 3,653 3,644
Sheffield Receivables Corp.
5.65% due 1/21/97......................................... 1,680 1,675
Sigma Finance Corp.
5.65% due 1/10/97......................................... 4,000 3,994
5.35% due 1/13/97......................................... 5,062 5,053
5.34% due 2/03/97......................................... 1,000 995
Smith Barney, Inc.
6.05% due 1/03/97......................................... 4,486 4,484
Sumitomo Corp. of America
5.47% due 4/30/97......................................... 9,500 9,327
Twin Towers, Inc.
5.36% due 1/21/97......................................... 6,003 5,985
5.39% due 1/21/97......................................... 4,505 4,492
----------
134,740
Food, Beverage and Tobacco-6.2%
American Home Food Products, Inc.
5.55% due 2/13/97......................................... 2,736 2,718
Coca-Cola Enterprises, Inc.
5.34% due 2/03/97......................................... 7,000 6,966
CPC International, Inc.
5.30% due 4/07/97......................................... 3,700 3,648
Foreign-9.8%
National Bank of Canada
5.36% due 1/17/97......................................... 9,000 8,979
Sanwa Business Credit Corp.
5.37% due 2/07/97......................................... 5,000 4,972
Sumitomo Bank Capital Markets
5.43% due 1/23/97......................................... 7,000 6,977
----------
20,928
Foreign Governmental-1.2%
Kingdom of Sweden
5.33% due 2/03/97......................................... 2,500 2,488
Machinery and Equipment-1.2%
Dover Corp.
5.60% due 2/07/97......................................... 2,494 2,480
Real Estate-1.2%
U.S. Prime Property, Inc.
5.33% due 4/22/97......................................... 2,500 2,459
Retail-4.7%
J.C. Penney Funding Corp.
5.42% due 2/28/97......................................... 5,054 5,010
Sears Roebuck Acceptance Corp.
5.33% due 2/03/97......................................... 5,000 4,976
----------
9,986
----------
TOTAL COMMERCIAL PAPER- 96.3% 205,313
--------- ----------
TOTAL INVESTMENTS- 99.6% 212,394
Cash and receivables, less purchases- 0.4% 841
========= ==========
NET ASSETS- 100.0% $ 213,235
========= ==========
</TABLE>
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Aerospace-1.0%
Litton Industries, Inc.* ................................... 2,200 $ 105
Automotive and Rubber-3.1%
Chrysler Corp. ............................................. 4,500 149
Goodyear Tire & Rubber Co. ................................. 1,300 67
LucasVarity plc - ADR* ..................................... 3,200 122
--------
338
Banks and Finance-3.5%
Bank United Corp. - Cl. A .................................. 5,100 136
Wells Fargo & Co. .......................................... 900 242
--------
378
Building Products-2.3%
Del E. Webb Corp. .......................................... 3,100 51
USG Corp.* ................................................. 5,800 196
--------
247
Business Services-1.2%
ACNielson Corp.* ........................................... 8,500 129
Chemicals-3.5%
Cabot Corp. ................................................ 3,200 80
E.I. du Pont de Nemours & Co. .............................. 1,800 170
IMC Global, Inc. ........................................... 3,300 129
--------
379
Computer Software and Services-0.5%
Autodesk, Inc. ............................................. 1,900 53
Diversified Operations-0.3%
Tele-Communications International, Inc.* ................... 2,600 34
EDP and Office Equipment-4.2%
Komag, Inc.* ............................................... 5,500 149
Seagate Technology, Inc.* .................................. 5,000 198
Xerox Corp. ................................................ 2,200 116
--------
463
Electronic and Processing Equipment-7.8%
Applied Materials, Inc.* ................................... 4,500 162
Arrow Electronics, Inc.* ................................... 2,300 123
KLA Instruments Corp.* ..................................... 3,500 124
Sunstrand Corp. ............................................ 3,500 149
Texas Instruments, Inc. .................................... 2,900 185
Varian Associates, Inc. .................................... 2,100 107
--------
850
Financial Services-2.6%
Capital One Financial Corp. ................................ 3,500 126
First USA, Inc. ............................................ 4,600 159
--------
285
Food, Beverage and Tobacco-1.2%
IBP, Inc. .................................................. 5,500 133
Health Products and Services-3.8%
Allegiance Corp. ........................................... 3,100 86
Columbia/HCA Healthcare Corp. .............................. 4,700 192
CVS Corp. .................................................. 2,300 95
Fresenius Medical Care AG - ADR* ........................... 1,400 39
Fresenius Medical Care AG - Pref.* ......................... 2,500 0
--------
412
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Household and Personal-0.9%
Tupperware Corp. ........................................... 1,900 $ 102
Insurance-5.8%
Allstate Corp. ............................................. 2,700 156
Equitable Cos., Inc. ....................................... 4,200 103
Exel, Ltd. ................................................. 5,100 193
Mid Ocean, Ltd. ............................................ 1,500 79
Progressive Corp. .......................................... 1,500 101
---------
632
Leisure and Recreation Products and Services-4.3%
Circus Circus Enterprises* ................................. 4,000 138
Royal Caribbean Cruises, Ltd. .............................. 5,400 126
Sabre Group Holdings, Inc. - Cl. A* ........................ 7,200 201
---------
465
Lodging and Restaurants-3.5%
Host Marriott Corp.* ....................................... 6,000 96
La Quinta Inns, Inc. ....................................... 5,400 103
Mirage Resorts, Inc. ....................................... 8,700 188
---------
387
Machinery and Equipment-0.8%
Mark IV Industries, Inc. ................................... 4,000 91
Media-7.8%
Comcast Corp. - Cl. A ...................................... 11,327 202
E.W. Scripps Co. - Cl. A ................................... 3,200 112
Evergreen Media Corp. ...................................... 5,000 125
Knight-Ridder, Inc. ........................................ 4,600 176
Time Warner, Inc. - Debs. .................................. 4,000 150
Young Broadcasting Corp.* .................................. 3,000 88
---------
853
Metals and Mining-1.2%
AK Steel Holding Corp. ..................................... 3,400 135
Miscellaneous-2.4%
Millipore Corp. ............................................ 1,900 79
Owens-Illinois, Inc.* ...................................... 8,000 182
---------
261
Oils and Natural Gas Equipment and Services-1.5%
Tidewater, Inc. ............................................ 3,700 167
Oils and Natural Gas Exploration and Production-5.8%
Amerada Hess Corp. ......................................... 1,500 87
Gulf Canada Resources, Ltd.* ............................... 17,600 130
Noble Affiliates, Inc. ..................................... 1,500 72
Tejas Gas Corp.* ........................................... 2,500 119
Union Pacific Resources Group, Inc. ........................ 4,493 131
United Meridian Corp.* ..................................... 1,900 98
---------
637
Paper and Forest Products-1.9%
Consolidated Papers, Inc. .................................. 1,400 69
Fort Howard Corp.* ......................................... 5,000 138
---------
207
Retail-7.6%
Footstar, Inc.* ............................................ 1 0
Harcourt General, Inc. ..................................... 3,000 138
Nordstrom, Inc. ............................................ 2,500 89
Price/Costco, Inc.* ........................................ 11,900 298
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Retail-Continued
Revco D.S., Inc.* .......................................... 4,500 $ 167
Wal-Mart Stores, Inc. ...................................... 6,000 137
---------
829
Telecommunications-1.8%
Airtouch Communications, Inc.* ............................. 3,800 96
Loral Space & Communications* .............................. 5,600 103
---------
199
Transportation-2.9%
Burlington Northern Santa Fe ............................... 1,500 130
Continental Airlines, Inc.* ................................ 3,300 93
Union Pacific Corp. ........................................ 1,500 90
---------
313
---------
TOTAL COMMON STOCKS- 83.2% 9,084
Par
Value
(000's)
SHORT-TERM INVESTMENTS-16.2%
Investment in joint trading account (Note B)
6.343% due 1/02/97......................................... $ 1,772 1,772
--------- ---------
TOTAL INVESTMENTS- 99.4% 10,856
Cash and receivables, less payables- 0.6% 70
--------- ---------
NET ASSETS- 100.0% $ 10,926
========= =========
</TABLE>
ADR-American Depository Receipt
*Non-income producing security.
See notes to financial statement.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Construction and Real Estate-10.7%
Construction-0.4%
Champion Enterprises, Inc.* ........................... 39,000 $ 761
Real Estate-1.4%
Arden Realty Group, Inc. .............................. 100,000 2,775
Real Estate Investment Trust-8.9%
Apartment Investment & Management Co. ................. 76,000 2,147
Beacon Properties Corp. ............................... 50,000 1,831
Cali Realty Corp. ..................................... 32,000 988
Patriot American Hospitality, Inc. .................... 37,000 1,596
Prentiss Properties Trust* ............................ 124,500 3,113
Reckson Associates Realty Corp. ....................... 31,000 1,310
Spieker Properties, Inc. .............................. 26,000 936
Starwood Lodging Trust ................................ 97,500 5,374
----------
17,295
Consumer Goods and Services-2.4%
Food, Beverage and Tobacco-2.4%
Flowers Industries, Inc. .............................. 37,000 796
Grupo Industrial Maseca SA de CV ...................... 46,000 880
Northland Cranberries, Inc. - Cl. A ................... 62,000 1,426
Pioneer Hi-Bred International, Inc. ................... 15,500 1,085
Smithfield Foods, Inc.* ............................... 13,500 513
----------
4,700
Defense and Aerospace-1.8%
Aerospace-1.8%
AAR Corp. ............................................. 17,000 514
Tracor, Inc.* ......................................... 142,000 3,018
----------
3,532
Diversified and Miscellaneous-1.8%
Miscellaneous-1.8%
Catalina Marketing Corp.* ............................. 17,000 $ 937
Dekalb Genetics Corp. ................................. 42,500 2,168
Firearms Training Systems, Inc.* ...................... 38,000 447
Mycogen Corp. ......................................... 44,000 946
----------
3,552
Energy-43.3%
Electronic and Processing Equipment-0.5%
Jack Henry & Associates, Inc. ......................... 24,000 858
Oils and Natural Gas Equipment and Services-25.1%
Benton Oil & Gas Co. .................................. 142,000 3,213
BJ Services Co.* ...................................... 10,500 536
Chesapeake Energy Corp. ............................... 37,000 2,058
Cooper Cameron Corp.* ................................. 12,000 918
Diamond Offshore Drilling, Inc. ....................... 68,000 3,876
Energy Ventures, Inc.* ................................ 94,800 4,822
ENSCO International, Inc. ............................. 100,000 4,849
Falcon Drilling Co., Inc. ............................. 126,000 4,945
Flores & Rucks, Inc. .................................. 51,000 2,716
Global Marine, Inc. ................................... 250,500 5,166
Nabors Industries, Inc. ............................... 36,000 693
Petroleum Geo-Services ASA* ........................... 96,000 3,744
Reading & Bates Corp. ................................. 129,500 3,432
Smith International, Inc.* ............................ 116,900 5,245
Tuboscope Vetco International Corp.* .................. 162,000 2,511
----------
48,724
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Oils and Natural Gas Exploration and Production-17.7%
Abacan Resource Corp.* ................................ 173,000 $ 1,503
Barrett Resources Corp.* .............................. 68,700 2,928
Canadian Natural Resources, Ltd.* ..................... 151,000 4,146
Forcenergy Gas Exploration, Inc. ...................... 120,000 4,350
Helmerich & Payne, Inc. ............................... 52,000 2,711
Newfield Exploration Co. .............................. 70,000 1,820
NGC Corp. ............................................. 18,900 439
Noble Drilling Corp.* ................................. 196,000 3,896
Nuevo Energy Co. ...................................... 96,500 5,017
Tosco Corp. ........................................... 60,000 4,747
Vintage Petroleum, Inc. ............................... 80,800 2,788
----------
34,345
Environmental-0.5%
Pollution Control Equipment and Services-0.5%
Philip Environmental, Inc.* ........................... 68,000 986
Financial Services-6.6%
Business Services-1.0%
Whittman-Hart, Inc.* .................................. 76,000 1,948
Financial Services-3.0%
Alex. Brown, Inc. ..................................... 8,000 580
Amresco, Inc.* ........................................ 154,600 4,136
Newcourt Credit Group, Inc. ........................... 33,500 1,157
----------
5,873
Insurance-2.6%
AFLAC, Inc. ........................................... 12,000 513
Progressive Corp. ..................................... 10,000 674
SunAmerica, Inc. ...................................... 85,000 3,772
----------
4,959
Health Care-0.4%
Health Products and Services-0.4%
Safeskin Corp.* ....................................... 14,400 702
Leisure and Entertainment-1.7%
Leisure and Recreation Products and Services-1.3%
Coachmen Industries, Inc. ............................. 76,100 2,159
Electronic Arts, Inc.* ................................ 13,000 389
----------
2,548
Media-0.4%
Univision Communications, Inc.* ....................... 22,000 814
Machinery and Equipment-1.7%
Machinery and Equipment-1.7%
Harnischfeger Industries, Inc. ........................ 42,000 2,021
Prime Service, Inc.* .................................. 49,000 1,348
----------
3,369
Precious Metals-10.8%
Metals and Mining-10.8%
Aurora Gold, Ltd.* .................................... 280,100 534
Bema Gold Corp.* ...................................... 182,000 1,081
Coeur D'Alene Mines Corp. ............................. 72,500 1,097
Euro-Nevada Mining Corp. .............................. 103,500 3,091
Getchell Gold Corp.* .................................. 17,000 652
Greenstone Resources, Ltd.* ........................... 21,000 247
Oregon Metallurgical Corp.* ........................... 76,500 2,467
Precision Castparts Corp. ............................. 38,000 1,886
RMI Titanium Co.* ..................................... 128,000 3,600
Titanium Metals Corp.* ................................ 145,000 4,766
Wyman-Gordon Co. ...................................... 70,000 1,558
----------
20,979
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
SPECIAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Retailing-1.0%
Retail-1.0%
Quality Food Centers, Inc.* ........................... 55,000 $ 1,856
Technology-7.6%
Computer Software and Services-4.1%
BMC Software, Inc.* ................................... 26,500 1,096
McAfee Associates, Inc. ............................... 17,250 759
Netscape Communications Corp. ......................... 50,000 2,844
Peoplesoft, Inc. ...................................... 17,000 815
Scopus Technology, Inc.* .............................. 38,000 1,767
Sykes Enterprises, Inc.* .............................. 17,000 638
----------
7,919
Electronic and Processing Equipment-1.3%
Adaptec, Inc.* ........................................ 11,000 440
Altera Corp.* ......................................... 7,000 509
Gateway 2000, Inc.* ................................... 31,500 1,687
----------
2,636
Telecommunications-2.2%
Cincinnati Bell, Inc. ................................. 14,000 863
Loral Space & Communications* ......................... 124,000 2,279
Tadiran Telecommunications, Ltd. ...................... 50,000 1,119
----------
4,261
Transportation-0.4%
Transportation-0.4%
Wisconsin Central Transportation Corp.* ............... 18,000 $ 713
----------
TOTAL COMMON STOCKS- 91.2% 177,051
Par
Value
(000's)
JOINT REPURCHASE AGREEMENT-11.3%
Investment in joint repurchase agreement with Lehman
Brothers dated 12/31/96 6.70% due 1/02/97 with a maturity
value of $21,835(a)....................................... $ 21,829 21,833
---------- ----------
TOTAL INVESTMENTS- 102.5% 198,884
Payables, less cash and receivables- (2.5)% (4,776)
---------- ----------
NET ASSETS- 100.0% $ 194,108
========== ==========
</TABLE>
* Non-income producing security.
(a) The repurchase agreement, dated 12/31/96, 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. (See Note B)
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS
<S> <C> <C>
Lodging and Restaurants-3.7%
Homestead Village, Inc.* ................................. 17,022 $ 306
Host Marriott Corp.* ..................................... 340,000 5,439
---------
5,745
Real Estate Development-5.5%
Catellus Development Corp.* .............................. 165,000 1,877
Highwood Properties, Inc. ................................ 85,000 2,869
Rouse Co. ................................................ 110,000 3,493
---------
8,239
Real Estate Investment Trust-87.0%
AMLI Residential Properties Trust ........................ 155,000 3,623
Avalon Properties, Inc. .................................. 115,000 3,306
Bay Apartment Communities, Inc. .......................... 65,000 2,340
Bradley Real Estate, Inc. ................................ 175,000 3,150
BRE Properties, Inc. ..................................... 152,000 3,762
Burnham Pacific Properties, Inc. ......................... 190,000 2,850
Cali Realty Corp. ........................................ 85,000 2,624
Camden Property Trust .................................... 120,000 3,435
Carr Realty Corp. ........................................ 150,000 4,388
Centerpoint Properties Corp. ............................. 75,000 2,456
Developers Diversified Realty Corp. ...................... 110,000 4,084
Duke Realty Investments, Inc. ............................ 83,000 3,196
Equity Residential Properties Trust ...................... 50,000 2,063
Evans Withycombe Residential, Inc. ....................... 95,000 1,995
Federal Realty Investment Trust .......................... 135,000 3,662
Glimcher Realty Trust .................................... 170,000 3,740
Horizon Group, Inc. ...................................... 55,000 1,093
JDN Realty Corp. ......................................... 135,000 3,729
JP Realty, Inc. .......................................... 140,000 3,623
Kimco Realty Corp. ....................................... 90,000 3,139
Liberty Property Trust ................................... 180,000 4,635
MGI Properties, Inc. ..................................... 160,000 3,520
Oasis Residential, Inc. .................................. 155,000 3,526
Pacific Gulf Properties, Inc. ............................ 150,000 2,925
Patriot American Hospitality, Inc. ....................... 110,000 4,743
Pennsylvania Real Estate Investment Trust ................ 75,000 1,828
Post Properties, Inc. .................................... 95,000 3,824
Prentiss Properties Trust* ............................... 85,000 2,125
Regency Realty Corp. ..................................... 35,000 919
RFS Hotel Investors, Inc. ................................ 105,000 2,061
ROC Communiities, Inc. ................................... 135,000 3,746
Security Capital Industrial Trust ........................ 148,638 3,177
Security Capital Pacific Trust ........................... 135,428 3,098
Simon DeBartolo Group, Inc. .............................. 155,000 4,804
South West Property Trust, Inc. .......................... 220,000 3,713
Sovran Self Storage, Inc. ................................ 105,000 3,281
Storage USA, Inc. ........................................ 105,000 3,951
Sun Communities, Inc. .................................... 115,000 3,968
United Dominion Realty Trust ............................. 210,000 3,255
Weeks Corp. .............................................. 65,000 2,161
Western Investment Real Estate Trust ..................... 180,000 2,340
Winston Hotels, Inc. ..................................... 115,000 1,567
---------
131,425
---------
TOTAL COMMON STOCKS- 96.2% 145,409
WARRANTS-0.0%
Homestead Village, Inc.
expires 10/29/97......................................... 0 0
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-3.3% Investment in joint trading account (Note B)
6.343% due 1/02/97....................................... $ 4,890 4,891
--------- ---------
TOTAL INVESTMENTS- 99.5% 150,300
Cash and receivables, less payables- 0.5% 805
--------- ---------
NET ASSETS- 100.0% $ 151,105
========= =========
</TABLE>
* Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS
<S> <C> <C>
Aerospace-3.7%
Boeing Co. ............................................ 146,300 $ 15,563
Lockheed Martin Corp. ................................. 231,544 21,186
McDonnell Douglas Corp. ............................... 22,800 1,459
United Technologies Corp. ............................. 565,400 37,316
------------
75,524
Automotive and Rubber-2.0%
Chrysler Corp. ........................................ 291,800 9,629
Dana Corp. ............................................ 283,100 9,236
Ford Motor Co. ........................................ 96,700 3,082
General Motors Corp. .................................. 306,900 17,110
Goodyear Tire & Rubber Co. ............................ 39,600 2,034
------------
41,091
Banks and Finance-4.7%
Banc One Corp. ........................................ 228,200 9,813
BankBoston Corp. ...................................... 19,100 1,227
BankAmerica Corp. ..................................... 207,600 20,708
Chase Manhattan Corp. ................................. 328,600 29,328
First Bank System, Inc. ............................... 152,400 10,401
Fleet Financial Group, Inc. ........................... 282,300 14,080
NationsBank Corp. ..................................... 111,900 10,938
------------
96,495
Building Products-0.3%
Masco Corp. ........................................... 181,800 6,545
Chemicals-4.8%
E.I. du Pont de Nemours & Co. ......................... 393,500 37,137
Ethyl Corp. ........................................... 478,900 4,609
Hercules, Inc. ........................................ 103,600 4,481
Monsanto Co. .......................................... 420,400 16,343
Morton International, Inc. ............................ 348,200 14,189
PPG Industries, Inc. .................................. 246,800 13,852
Praxair, Inc. ......................................... 127,700 5,890
Rohm & Haas Co. ....................................... 21,500 1,755
------------
98,256
Computer Software and Services-1.9%
Adobe Systems, Inc. ................................... 77,000 2,878
Autodesk, Inc. ........................................ 22,400 627
Computer Associates International, Inc. ............... 261,100 12,990
Electronic Data Systems Corp. ......................... 91,600 3,962
Microsoft Corp.* ...................................... 203,400 16,806
Policy Management Systems Corp.* ...................... 30,000 1,384
------------
38,647
Diversified Operations-2.9%
B.F. Goodrich Co. ..................................... 105,200 4,261
Canadian Pacific, Ltd. ................................ 120,500 3,193
Echelon International Corp., Inc.* .................... 25,620 400
Minnesota Mining & Manufacturing Co. .................. 63,300 5,246
Ogden Corp. ........................................... 122,568 2,298
Raychem Corp. ......................................... 53,600 4,295
Tenneco, Inc.* ........................................ 164,700 7,432
Textron, Inc. ......................................... 114,600 10,801
Trinity Industries, Inc. .............................. 115,300 4,324
Unilever NV ........................................... 42,900 7,518
Whitman Corp. ......................................... 458,000 10,477
------------
60,245
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
EDP and Office Equipment-4.1%
Alco Standard Corp. ................................... 85,100 $ 4,393
Compaq Computer Corp.* ................................ 113,400 8,420
Dell Computer Corp.* .................................. 71,200 3,783
IBM Corp. ............................................. 297,000 44,847
Komag, Inc.* .......................................... 135,100 3,665
Pitney Bowes, Inc. .................................... 244,300 13,314
Tandem Computers, Inc.* ............................... 108,700 1,495
Xerox Corp. ........................................... 76,500 4,026
------------
83,943
Electronic and Processing Equipment-7.6%
Analog Devices, Inc.* ................................. 52,400 1,775
General Electric Co. .................................. 682,200 67,453
General Instrument Corp.* ............................. 185,600 4,014
General Signal Corp. .................................. 55,600 2,377
Hewlett-Packard Co. ................................... 456,500 22,939
Honeywell, Inc. ....................................... 132,500 8,712
Imation Corp.* ........................................ 61,700 1,735
Intel Corp. ........................................... 331,200 43,367
Tektronix, Inc. ....................................... 51,500 2,639
Thomas & Betts Corp. .................................. 15,600 692
------------
155,703
Financial Services-2.9%
American Express Co. .................................. 321,100 18,142
Dean Witter Discover & Co. ............................ 295,000 19,544
First Chicago NBD Corp. ............................... 338,400 18,189
Providian Corp. ....................................... 62,100 3,190
------------
59,065
Food, Beverage and Tobacco-3.9%
Albertsons, Inc. ...................................... 308,900 11,005
ConAgra, Inc. ......................................... 265,400 13,204
Flowers Industries, Inc. .............................. 258,300 5,553
Philip Morris Cos., Inc. .............................. 319,100 35,939
Universal Foods Corp. ................................. 233,900 8,245
UST, Inc. ............................................. 210,500 6,815
------------
80,761
Governmental-0.5%
Federal National Mortgage Assoc. ...................... 270,200 10,065
Health Products and Services-10.9%
Abbott Laboratories ................................... 529,000 26,847
Alza Corp.* ........................................... 168,500 4,360
Amgen, Inc.* .......................................... 141,200 7,678
Becton, Dickinson & Co. ............................... 169,900 7,369
Bristol-Myers Squibb Co. .............................. 122,900 13,365
Columbia/HCA Healthcare Corp. ......................... 284,550 11,595
Glaxo Wellcome plc - ADR .............................. 96,700 3,070
Guidant Corp. ......................................... 86,500 4,931
Health Management Assoc., Inc. - Cl. A* ............... 36,843 829
HEALTHSOUTH Corp.* .................................... 99,000 3,824
Hillenbrand Industries, Inc. .......................... 134,900 4,890
Johnson & Johnson ..................................... 802,600 39,929
Mallinckrodt, Inc. .................................... 190,400 8,401
Medtronic, Inc. ....................................... 40,500 2,754
Merck & Co., Inc. ..................................... 481,100 38,127
Pfizer, Inc. .......................................... 225,300 18,672
Pharmacia & Upjohn, Inc. .............................. 199,300 7,897
Schering-Plough Corp. ................................. 159,500 10,328
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Health Products and Services-Continued
United Healthcare Corp. ............................... 88,900 $ 4,000
Vencor, Inc.* ......................................... 43,200 1,366
Warner-Lambert Co. .................................... 47,700 3,578
------------
223,810
Household and Personal-1.6%
Avon Products, Inc. ................................... 40,400 2,308
Gillette Co. .......................................... 394,900 30,703
------------
33,011
Insurance-5.9%
American International Group, Inc. .................... 144,500 15,642
Cigna Corp. ........................................... 224,400 30,659
Equitable Cos., Inc. .................................. 45,000 1,108
General Re Corp. ...................................... 183,200 28,900
ITT Hartford Group, Inc. .............................. 308,400 20,817
Marsh & McLennan Cos., Inc. ........................... 216,900 22,558
------------
119,684
Leisure and Recreation Products and Services-1.0%
The Walt Disney Co. ................................... 278,100 19,363
Lodging and Restaurants-1.3%
HFS, Inc.* ............................................ 114,400 6,835
Hilton Hotels Corp. ................................... 284,400 7,430
ITT Corp.* ............................................ 147,300 6,389
Outback Steakhouse, Inc.* ............................. 98,300 2,630
Wendy's International, Inc. ........................... 174,800 3,583
------------
26,867
Machinery and Equipment-1.8%
Caterpillar, Inc. ..................................... 93,900 7,066
Cooper Industries, Inc. ............................... 348,700 14,689
Dover Corp. ........................................... 43,000 2,161
Ingersoll-Rand Co. .................................... 41,900 1,865
Perkin-Elmer Corp. .................................... 175,000 10,303
------------
36,084
Media-0.6%
McGraw-Hill Cos., Inc. ................................ 280,100 12,920
Metals and Mining-0.1%
Precision Castparts Corp. ............................. 34,600 1,717
Miscellaneous-1.6%
American Greetings Corp. - Cl. A ...................... 191,300 5,428
Avery Dennison Corp. .................................. 336,200 11,893
Crown Cork & Seal Co., Inc. ........................... 81,500 4,432
Fleetwood Enterprises, Inc. ........................... 146,300 4,023
Millipore Corp. ....................................... 179,800 7,439
------------
33,215
Oils and Natural Gas Equipment and Services-0.8%
Baker Hughes, Inc. .................................... 165,200 5,699
Dresser Industries, Inc. .............................. 153,900 4,771
Halliburton Co. ....................................... 30,000 1,808
Rowan Cos., Inc.* ..................................... 136,100 3,079
------------
15,357
Oils and Natural Gas Exploration and Production-10.5%
Amoco Corp. ........................................... 66,100 5,321
Anadarko Petroleum Corp. .............................. 151,000 9,777
Atlantic Richfield Co. ................................ 378,900 50,204
British Petroleum Co. plc - ADR ....................... 49,800 7,041
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Oils and Natural Gas Exploration and Production-Continued
Chevron Corp. ......................................... 338,900 $ 22,029
Consolidated Natural Gas Co. .......................... 159,600 8,818
Imperial Oil, Ltd. .................................... 271,500 12,761
Kerr-McGee Corp. ...................................... 166,600 11,995
Mobil Corp. ........................................... 75,100 9,181
PanEnergy Corp. ....................................... 380,200 17,109
Phillips Petroleum Co. ................................ 489,300 21,652
Texaco, Inc. .......................................... 268,600 26,356
Unocal Corp. .......................................... 321,900 13,077
------------
215,320
Paper and Forest Products-1.0%
Kimberly-Clark Corp. .................................. 168,100 16,012
Mead Corp. ............................................ 37,700 2,191
Westvaco Corp. ........................................ 100,500 2,889
------------
21,092
Photography and Related Services-1.4%
Eastman Kodak Co. ..................................... 358,100 28,738
Pollution Control Equipment and Services-0.2%
Wheelabrator Technologies, Inc. ....................... 305,000 4,956
Retail-7.5%
American Stores Co. ................................... 90,800 3,711
Dayton-Hudson Corp. ................................... 147,800 5,801
Federated Department Stores, Inc.* .................... 399,200 13,623
Fruit of the Loom, Inc. - Cl. A* ...................... 103,800 3,931
Gap, Inc. ............................................. 235,100 7,082
Home Depot, Inc. ...................................... 558,000 27,970
Liz Claiborne, Inc. ................................... 101,200 3,909
Lowe's Cos., Inc. ..................................... 148,900 5,286
Nike, Inc. - Cl. B .................................... 188,400 11,257
Nine West Group, Inc.* ................................ 194,100 9,001
Price/Costco, Inc.* ................................... 361,800 9,090
Staples, Inc.* ........................................ 524,300 9,470
Toys "R" Us, Inc.* .................................... 351,400 10,542
Wal-Mart Stores, Inc. ................................. 1,061,600 24,284
Warnaco Group, Inc. - Cl. A ........................... 271,600 8,046
------------
153,003
Telecommunications-1.4%
British Telecommunications plc - ADR .................. 195,100 13,389
Lucent Technologies, Inc. ............................. 248,485 11,492
Scientific-Atlanta, Inc. .............................. 202,000 3,030
------------
27,911
Transportation-1.4%
CSX Corp. ............................................. 215,200 9,092
Norfolk Southern Corp. ................................ 162,700 14,236
Southwest Airlines Co. ................................ 143,900 3,184
Union Pacific Corp. ................................... 36,700 2,207
------------
28,719
Utilities - Electric-3.7%
Cinergy Corp. ......................................... 9,600 320
DQE, Inc. ............................................. 165,200 4,791
Entergy Corp. ......................................... 803,400 22,294
Florida Progress Corp. ................................ 384,300 12,394
Hawaiian Electric Industries, Inc. .................... 140,300 5,068
Idaho Power Co. ....................................... 82,300 2,562
Southern Co. .......................................... 94,000 2,127
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Utilities - Electric-Continued
Texas Utilities Co. ................................... 433,200 $ 17,653
Unicom Corp. .......................................... 337,600 9,157
------------
76,366
Utilities - Gas-0.1%
Nicor, Inc. ........................................... 39,900 1,426
Utilities - Telecommunications-5.7%
AT&T Corp. ............................................ 1,470,900 63,984
Bell Atlantic Corp. ................................... 27,200 1,761
BellSouth Corp. ....................................... 392,300 15,839
GTE Corp. ............................................. 572,800 26,062
SBC Communications, Inc. .............................. 191,300 9,900
------------
117,546
------------
TOTAL COMMON STOCKS- 97.8% 2,003,446
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-2.0%
Investment in joint trading account (Note B)
6.343% due 1/02/97.................................... $ 39,994 40,001
----------- ------------
TOTAL INVESTMENTS- 99.8% 2,043,447
Cash and receivables, less payables- 0.2% 4,480
----------- ------------
NET ASSETS- 100.0% $ 2,047,927
=========== ============
</TABLE>
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Aerospace-1.4%
Boeing Co. ............................................. 80,900 $ 8,606
Lockheed Martin Corp. .................................. 87,364 7,994
United Technologies Corp. .............................. 273,700 18,064
------------
34,664
Automotive and Rubber-1.2%
Chrysler Corp. ......................................... 250,800 8,276
Dana Corp. ............................................. 86,700 2,829
Ford Motor Co. ......................................... 151,700 4,835
General Motors Corp. ................................... 147,900 8,245
Goodyear Tire & Rubber Co. ............................. 96,400 4,953
------------
29,138
Banks and Finance-2.3%
Banc One Corp. ......................................... 114,170 4,909
BankBoston Corp. ....................................... 9,000 578
BankAmerica Corp. ...................................... 97,000 9,676
Barnett Banks, Inc. .................................... 74,600 3,068
Chase Manhattan Corp. .................................. 144,600 12,906
First Bank System, Inc. ................................ 75,000 5,119
First Union Corp. ...................................... 9,500 703
Fleet Financial Group, Inc. ............................ 120,000 5,985
NationsBank Corp. ...................................... 84,500 8,260
Norwest Corp. .......................................... 101,000 4,394
------------
55,598
Building Products-0.2%
Fleetwood Enterprises, Inc. ............................ 56,800 1,562
Masco Corp. ............................................ 84,500 3,042
------------
4,604
Chemicals-1.8%
E.I. du Pont de Nemours & Co. .......................... 160,400 15,138
Ethyl Corp. ............................................ 266,000 2,560
Monsanto Co. ........................................... 202,900 7,888
Morton International, Inc. ............................. 126,200 5,143
PPG Industries, Inc. ................................... 150,300 8,436
Praxair, Inc. .......................................... 45,100 2,080
Rohm & Haas Co. ........................................ 9,400 767
------------
42,012
Computer Software and Services-1.0%
Adobe Systems, Inc. .................................... 37,900 1,417
Computer Associates International, Inc. ................ 123,600 6,149
Electronic Data Systems Corp. .......................... 47,700 2,063
Microsoft Corp.* ....................................... 147,400 12,179
Policy Management Systems Corp.* ....................... 71,200 3,284
------------
25,092
Diversified Operations-1.1%
B.F. Goodrich Co. ...................................... 55,100 2,232
Canadian Pacific, Ltd. ................................. 28,100 745
Echelon International Corp., Inc.* ..................... 9,280 145
Illinois Tool Works, Inc. .............................. 17,000 1,358
Raychem Corp. .......................................... 67,900 5,440
Tenneco, Inc. .......................................... 16,000 722
Textron, Inc. .......................................... 58,500 5,514
Trinity Industries, Inc. ............................... 45,700 1,714
Unilever NV ............................................ 49,000 8,587
------------
26,457
EDP and Office Equipment-1.6%
Compaq Computer Corp.* ................................. 65,600 4,871
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
EDP and Office Equipment-Continued
Dell Computer Corp.* ................................... 33,100 $ 1,758
IBM Corp. .............................................. 137,100 20,702
Komag, Inc.* ........................................... 67,200 1,823
Pitney Bowes, Inc. ..................................... 78,400 4,273
Stratus Computer, Inc.* ................................ 49,100 1,338
Tandem Computers, Inc.* ................................ 67,200 924
Xerox Corp. ............................................ 48,000 2,526
------------
38,215
Electronic and Processing Equipment-3.6%
Analog Devices, Inc.* .................................. 15,450 523
General Electric Co. ................................... 346,500 34,259
General Signal Corp. ................................... 80,800 3,454
Hewlett-Packard Co. .................................... 222,700 11,191
Honeywell, Inc. ........................................ 74,100 4,872
Imation Corp.* ......................................... 31,600 889
Intel Corp. ............................................ 195,700 25,623
Mentor Graphics Corp.* ................................. 113,400 1,106
Thomas & Betts Corp. ................................... 89,700 3,980
------------
85,897
Financial Services-1.0%
American Express Co. ................................... 205,700 11,622
Dean Witter Discover & Co. ............................. 132,300 8,765
First Chicago NBD Corp. ................................ 54,300 2,919
------------
23,306
Food, Beverage and Tobacco-2.0%
Albertsons, Inc. ....................................... 33,200 1,183
Anheuser-Busch Cos., Inc. .............................. 50,200 2,008
ConAgra, Inc. .......................................... 130,100 6,472
Flowers Industries, Inc. ............................... 73,700 1,585
Philip Morris Cos., Inc. ............................... 196,600 22,142
Universal Foods Corp. .................................. 221,200 7,797
UST, Inc. .............................................. 174,500 5,649
------------
46,836
Government Agencies-0.2%
Federal National Mortgage Assoc. ....................... 138,300 5,152
Health Products and Services-4.9%
Abbott Laboratories .................................... 261,900 13,291
Alza Corp.* ............................................ 79,800 2,065
American Home Products Corp.* .......................... 54,000 3,166
Amgen, Inc.* ........................................... 70,800 3,850
Becton, Dickinson & Co. ................................ 85,800 3,722
Bristol-Myers Squibb Co. ............................... 68,300 7,428
Columbia/HCA Healthcare Corp. .......................... 159,200 6,487
Glaxo Wellcome plc - ADR ............................... 51,100 1,622
Guidant Corp. .......................................... 47,800 2,725
HEALTHSOUTH Corp.* ..................................... 26,800 1,035
Hillenbrand Industries, Inc. ........................... 70,900 2,570
Johnson & Johnson ...................................... 420,900 20,940
Mallinckrodt, Inc. ..................................... 100,000 4,413
Medtronic, Inc. ........................................ 24,100 1,639
Merck & Co., Inc. ...................................... 231,900 18,378
Pfizer, Inc. ........................................... 114,500 9,489
Pharmacia & Upjohn, Inc. ............................... 101,100 4,006
Schering-Plough Corp. .................................. 82,500 5,342
United Healthcare Corp. ................................ 49,900 2,246
Vencor, Inc.* .......................................... 89,900 2,843
------------
117,257
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Household and Personal-0.5%
Avon Products, Inc. .................................... 28,000 $ 1,600
Gillette Co. ........................................... 124,200 9,657
Rubbermaid, Inc. ....................................... 27,800 632
------------
11,889
Insurance-2.9%
American International Group, Inc. ..................... 112,100 12,135
Cigna Corp. ............................................ 127,800 17,461
General Re Corp. ....................................... 83,100 13,109
ITT Hartford Group, Inc. ............................... 145,400 9,815
Marsh & McLennan Cos., Inc. ............................ 171,900 17,878
------------
70,398
Leisure and Recreation Products and Services-0.5%
The Walt Disney Co. .................................... 155,900 10,855
Lodging and Restaurants-0.5%
HFS, Inc.* ............................................. 68,100 4,069
Hilton Hotels Corp. .................................... 117,000 3,057
ITT Corp.* ............................................. 81,500 3,535
Outback Steakhouse, Inc.* .............................. 61,100 1,634
------------
12,295
Machinery and Equipment-0.6%
Caterpillar, Inc. ...................................... 42,000 3,161
Cooper Industries, Inc. ................................ 71,500 3,012
Dover Corp. ............................................ 23,100 1,161
Duriron Co., Inc. ...................................... 58,400 1,584
Ingersoll-Rand Co. ..................................... 10,000 445
Parker-Hannifin Corp. .................................. 10,400 403
Perkin-Elmer Corp. ..................................... 67,500 3,974
------------
13,740
Media-0.2%
McGraw-Hill Cos., Inc. ................................. 98,400 4,539
Metals and Mining-0.2%
British Steel plc - ADR ................................ 99,400 2,734
Precision Castparts Corp. .............................. 34,500 1,712
------------
4,446
Miscellaneous-0.6%
American Greetings Corp. - Cl. A ....................... 108,900 3,090
Avery Dennison Corp. ................................... 237,200 8,391
Crown Cork & Seal Co., Inc. ............................ 55,900 3,040
Newport News Shipbuilding, Inc.* ....................... 3,200 48
Pall Corp. ............................................. 30,800 785
------------
15,354
Oils and Natural Gas Equipment and Services-0.3%
Baker Hughes, Inc. ..................................... 82,700 2,853
Dresser Industries, Inc. ............................... 57,400 1,779
Halliburton Co. ........................................ 30,300 1,826
------------
6,458
Oils and Natural Gas Exploration and Production-5.1%
Amoco Corp. ............................................ 44,300 3,566
Anadarko Petroleum Corp. ............................... 72,900 4,720
Atlantic Richfield Co. ................................. 169,800 22,499
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Oils and Natural Gas Exploration and Production-Continued
British Petroleum Co. plc - ADR ........................ 9,800 $ 1,385
Chevron Corp. .......................................... 198,700 12,916
Consolidated Natural Gas Co. ........................... 130,100 7,188
Imperial Oil, Ltd. ..................................... 117,500 5,523
Kerr-McGee Corp. ....................................... 40,200 2,894
Mobil Corp. ............................................ 49,300 6,027
PanEnergy Corp. ........................................ 238,900 10,751
Phillips Petroleum Co. ................................. 362,000 16,019
Texaco, Inc. ........................................... 170,100 16,691
Unocal Corp. ........................................... 275,800 11,204
------------
121,383
Paper and Forest Products-0.4%
Kimberly-Clark Corp. ................................... 90,300 8,601
Mead Corp. ............................................. 33,500 1,947
------------
10,548
Photography and Related Services-0.6%
Eastman Kodak Co. ...................................... 172,900 13,875
Pollution Control Equipment and Services-0.2%
Safety Kleen Corp. ..................................... 91,800 1,503
Wheelabrator Technologies, Inc. ........................ 152,616 2,480
------------
3,983
Real Estate Development-0.0%
Clayton Homes, Inc. .................................... 63,000 851
Retail-3.3%
Dayton-Hudson Corp. .................................... 63,200 2,481
Federated Department Stores, Inc.* ..................... 200,300 6,835
Home Depot, Inc. ....................................... 287,500 $ 14,411
Liz Claiborne, Inc. .................................... 109,600 4,233
Lowe's Cos., Inc. ...................................... 113,700 4,036
Nike, Inc. - Cl. B ..................................... 98,000 5,856
Nine West Group, Inc.* ................................. 96,700 4,484
Price/Costco, Inc.* .................................... 258,300 6,490
Safeway, Inc.* ......................................... 78,400 3,352
Staples, Inc.* ......................................... 261,625 4,726
TJX Cos., Inc. ......................................... 33,000 1,563
Toys "R" Us, Inc.* ..................................... 221,500 6,645
Wal-Mart Stores, Inc. .................................. 527,100 12,057
Warnaco Group, Inc. - Cl. A ............................ 18,700 554
------------
77,723
Telecommunications-0.4%
British Telecommunications plc - ADR ................... 34,200 2,347
Lucent Technologies, Inc. .............................. 132,237 6,116
Scientific-Atlanta, Inc. ............................... 106,800 1,602
------------
10,065
Textiles-0.2%
Fruit of the Loom, Inc. - Cl. A* ....................... 112,200 4,250
Transportation-0.5%
CSX Corp. .............................................. 144,700 6,114
Norfolk Southern Corp. ................................. 68,800 6,020
Union Pacific Corp. .................................... 14,700 884
------------
13,018
Utilities - Electric-1.5%
Baltimore Gas & Electric Co. ........................... 30,900 827
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Utilities - Electric-Continued
DQE, Inc. .............................................. 113,300 $ 3,286
Entergy Corp. .......................................... 265,900 7,379
Florida Progress Corp. ................................. 139,200 4,489
Hawaiian Electric Industies, Inc. ...................... 31,100 1,123
Peco Energy Co. ........................................ 37,900 957
Texas Utilities Co. .................................... 250,200 10,196
Unicom Corp. ........................................... 246,000 6,673
------------
34,930
Utilities - Telecommunications-2.6%
AT & T Corp. ........................................... 751,900 32,707
Bell Atlantic Corp. .................................... 8,300 537
BellSouth Corp. ........................................ 359,900 14,531
GTE Corp. .............................................. 56,300 2,562
SBC Communications, Inc. ............................... 230,200 11,913
------------
62,250
------------
TOTAL COMMON STOCKS- 43.4% 1,037,078
<CAPTION>
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Aerospace-1.3%
Boeing Co. - Debs.
8.625% due 11/15/31.................................... $ 7,920 9,300
Lockheed Martin Corp. - Notes
7.45% due 6/15/04...................................... 19,070 19,679
McDonnell Douglas Corp. - Notes
8.625% due 4/01/97..................................... 2,420 2,437
Automotive and Rubber-1.6%
Ford Motor Credit Corp. - Notes
8.20% due 2/15/02...................................... 22,085 23,451
General Motors Acceptance Corp. - Med. Term Notes
6.75% due 6/17/02...................................... 15,330 15,387
------------
38,838
Banks and Finance-6.6%
ABN Amro Bank NV (Chicago) - Global Bonds
7.25% due 5/31/05...................................... 8,910 9,048
BankAmerica Corp. - Notes
7.50% due 3/15/97...................................... 12,340 12,383
BankAmerica Corp. - Sub. Notes
7.20% due 4/15/06...................................... 17,060 17,149
Bankers Trust NY - Sub. Notes
8.25% due 5/01/05...................................... 9,489 10,135
BCH Cayman Islands, Ltd. - Unsec. Sub. Notes
7.70% due 7/15/06...................................... 11,280 11,609
Chase Manhattan Corp. - Sub. Notes
7.625% due 1/15/03..................................... 3,030 3,147
First Union Corp. - Sub. Notes
7.05% due 8/01/05...................................... 9,090 9,056
Fleet Financial Group - Sub. Notes
6.875% due 3/01/03..................................... 6,420 6,410
Kansallis-Osake-Pankki - Sub. Notes
10.00% due 5/01/02..................................... 10,485 11,895
Midland Bank plc - Sub. Notes
7.625% due 6/15/06..................................... 12,890 13,313
NationsBank Corp. - Sub. Notes
6.50% due 3/15/06...................................... 2,530 2,420
7.50% due 9/15/06...................................... 4,500 4,619
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Banks and Finance-Continued
NBD Bancorp - Sub. Notes
7.125% due 5/15/07..................................... $ 9,520 $ 9,477
Santander Finance Issuances, Ltd. - Bonds
7.75% due 5/15/05...................................... 5,370 5,568
Society National Bank - Sub. Notes
7.25% due 6/01/05...................................... 10,380 10,483
Swiss Bank Corp. NY - Sub. Debs.
7.50% due 7/15/25...................................... 14,590 14,659
Wells Fargo & Co. - Sub. Notes
6.875% due 4/01/06..................................... 2,630 2,588
7.125% due 8/15/06..................................... 3,500 3,507
------------
157,466
EDP and Office Equipment-0.8%
IBM Corp. - Debs.
7.125% due 12/01/2096.................................. 18,920 17,961
Financial Services-6.6%
American Express Co. - Debs.
8.50% due 8/15/01...................................... 175 188
American General Finance Corp. - Sr. Notes
7.25% due 5/15/05...................................... 4,620 4,690
Associates Corp. of N.A. - Sr. Notes
7.50% due 5/15/99...................................... 1,120 1,149
AT & T Universal Card Master Trust - Ser. 1995-2
5.95% due 10/17/02..................................... 7,180 7,094
Banponce Financial Corp. - Med. Term Note
7.30% due 6/05/02...................................... 7,880 8,075
Chemical Master Credit Card Trust - Ser. 1995-3
5.55% due 9/15/03...................................... 10,320 10,028
6.23% due 4/15/05...................................... 12,850 12,674
Citibank Credit Card Master Trust I - Ser. 1996-1 Cl. A
0.00% due 2/07/03...................................... 18,130 13,984
Crown Cork & Seal Finance plc - Bonds
7.00% due 12/15/06..................................... 9,350 9,284
ERP Operating LP - Notes
7.95% due 4/15/02...................................... 5,450 5,652
Fletcher Challenge Industries, Ltd. - Notes
9.00% due 9/15/99...................................... 1,270 1,348
General Motors Acceptance Corp. - Med. Term Notes
6.80% due 5/22/01...................................... 480 484
Green Tree Financial Corp. - Ser. 1993-3 Cl. A5
5.75% due 10/15/18..................................... 13,120 12,842
Lehman Brothers Holdings, Inc. - Sr. Notes
6.625% due 11/15/00.................................... 7,480 7,425
Lehman Brothers Inc. - Sr. Sub. Notes
7.25% due 4/15/03...................................... 550 553
Nationsbank Credit Card Master Trust - Ser. 1993-2 Cl. A
6.00% due 12/15/05..................................... 13,070 12,607
Prime Credit Card Master Trust - Ser. 1996-1 Cl. A
6.70% due 7/15/04...................................... 13,190 13,310
Salomon, Inc. - Sr. Notes
7.00% due 1/20/98...................................... 5,030 5,069
6.70% due 12/01/98..................................... 7,750 7,786
Santander Finance Issuances, Ltd. - Unsec. Sub. Notes
7.00% due 4/01/06...................................... 6,510 6,437
Sears Credit Account Master Trust
6.45% due 10/15/06..................................... 5,660 5,645
Sears Credit Account Master Trust - Ser. 1995-5 Cl. A
6.05% due 1/15/08...................................... 10,500 10,232
Sears Roebuck Acceptance Corp. - Med. Term Notes
5.96% due 12/07/00..................................... 1,330 1,304
------------
157,860
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Food, Beverage and Tobacco-1.2%
Coca-Cola Enterprises, Inc. - Bonds
6.70% due 10/15/36..................................... $ 14,250 $ 14,371
H.J. Heinz Co. - Notes
5.50% due 9/15/97...................................... 560 559
Philip Morris Cos., Inc. - Debs.
9.00% due 1/01/01...................................... 1,000 1,079
Philip Morris Cos., Inc. - Notes
7.75% due 5/01/99...................................... 3,000 3,085
8.25% due 10/15/03..................................... 9,530 10,117
------------
29,211
Foreign-2.7%
ANZ Banking Group Ltd. - Sub. Notes
6.25% due 2/01/04...................................... 10,970 10,505
Hydro-Quebec - Debs.
7.375% due 2/01/03..................................... 6,865 7,072
Korea Development Bank - Notes
5.875% due 12/01/98.................................... 1,375 1,368
6.25% due 5/01/00...................................... 10,100 9,989
Legrand SA - Debs.
8.50% due 2/15/25...................................... 11,700 13,073
News America Holdings, Inc. - Debs.
9.25% due 2/01/13...................................... 12,135 13,544
Svenska Handelsbanken NY - Sub. Debs.
8.35% due 7/15/04...................................... 8,965 9,680
------------
65,231
Foreign Governmental-0.9%
Province of Ontario, Canada - Bonds
6.00% due 2/21/06...................................... 2,470 2,336
Province of Ontario, Canada - Sr. Unsub. Notes
7.375% due 1/27/03..................................... 750 780
Province of Quebec - Debs.
8.80% due 4/15/03...................................... 5,145 5,669
Province of Quebec - Notes
5.735% due 3/02/26..................................... 12,850 12,508
------------
21,293
Government Agencies-7.8%
Federal National Mortgage Assoc.
6.36% due 8/16/00..................................... 24,600 24,672
Federal National Mortgage Assoc.
6.50% due 4/01/08 - 5/01/11........................... 48,234 47,390
Federal National Mortgage Assoc.
7.00% due 3/01/26 - 5/01/26........................... 9,299 9,091
Federal National Mortgage Assoc. - TBA
7.50% due 12/01/99.................................... 20,440 20,434
Government National Mortgage Assoc.
7.00% due 1/15/23 - 12/15/23.......................... 10,904 10,719
Government National Mortgage Assoc.
7.50% due 2/15/22 - 12/15/99.......................... 27,162 27,253
Government National Mortgage Assoc.
8.00% due 1/15/23 - 12/15/99.......................... 34,432 35,194
Railcar Trust - Pass thru Notes Ser. 1992-1
7.75% due 6/01/04..................................... 9,930 10,345
------------
185,098
Health Products and Services-0.5%
Columbia/HCA Healthcare Corp. - Notes
7.50% due 11/15/95..................................... 11,870 11,751
Insurance-0.4%
St Paul Cos., Inc. - Debs.
9.375% due 6/15/97..................................... 8,650 8,784
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Metals and Mining-0.5%
Pohang Iron & Steel Co. - Notes
7.375% due 5/15/05..................................... $ 11,150 $ 11,305
Oils and Natural Gas Exploration and Production-0.5%
Atlantic Richfield Co. - Debs.
8.75% due 3/01/32...................................... 9,300 10,830
Paper and Forest Products-0.0%
James River Corp. of Virginia - Debs.
7.75% due 11/15/23..................................... 700 691
Pollution Control Equipment and Services-0.3%
WMX Tecnologies, Inc. - Notes
6.22% due 4/30/04...................................... 7,640 8,163
Retail-0.2%
May Dept Stores Co. - Debs.
9.50% due 4/15/21...................................... 4,900 5,871
Transportation-0.1%
Southwest Airlines Co. - Debs.
8.75% due 10/15/03..................................... 1,245 1,369
U.S. Governmental-21.0%
U.S. Treasury - Bonds
11.625% due 11/15/04................................... 58,010 76,590
13.875% due 5/15/11.................................... 15,010 22,660
8.125% due 8/15/21..................................... 14,080 16,346
U.S. Treasury - Notes
6.125% due 9/30/00..................................... 102,900 102,834
7.50% due 5/15/02...................................... 72,400 76,550
7.25% due 8/15/04...................................... 72,840 76,663
7.50% due 2/15/05...................................... 121,425 129,867
-----------
501,510
Utilities - Electric-0.5%
Enersis SA
6.90% due 12/01/06..................................... $ 12,670 $ 12,368
Utilities - Telecommunications-0.3%
GTE Southwest, Inc. - 1st Mtge. Bonds
8.50% due 11/15/31..................................... 1,950 2,211
Northwestern Bell Telephone Co. - Debs.
9.50% due 5/01/00...................................... 250 272
Pacific Bell - Debs.
8.70% due 6/15/01...................................... 4,435 4,788
-----------
7,271
-----------
TOTAL PUBLICLY-TRADED BONDS- 53.8% 1,284,287
SHORT-TERM INVESTMENTS-4.0%
Investment in joint trading account (Note B)
6.343% due 1/02/97..................................... 95,111 95,127
---------- -----------
TOTAL INVESTMENTS- 101.2% 2,416,492
Payables, less cash and receivables- (1.2)% (29,832)
---------- -----------
NET ASSETS- 100.0% $ 2,386,660
========== ===========
</TABLE>
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
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-58.8%
Federal Farm Credit Banks - Notes
8.65% due 10/01/99......................................... $ 1,020 $ 1,084
Federal Farm Credit Banks - Med. Term Notes
5.31% due 5/26/98.......................................... 100 99
7.55% due 10/30/98......................................... 100 103
5.70% due 11/16/98......................................... 400 398
6.57% due 4/13/99.......................................... 1,500 1,517
6.375% due 11/01/01........................................ 3,000 2,997
Federal Home Loan Bank - Bonds
5.90% due 9/21/98.......................................... 880 879
5.82% due 12/02/99......................................... 6,000 5,946
Federal Home Loan Bank - Debs.
5.94% due 6/13/00.......................................... 550 545
Federal Home Loan Mortgage Corp. - Debs.
5.02% due 2/15/99.......................................... 420 412
6.515% due 8/25/00......................................... 500 504
6.24% due 9/07/00.......................................... 1,000 999
Federal National Mortgage Assoc. - Bonds
8.25% due 12/18/00......................................... 615 656
6.40% due 5/02/01.......................................... 4,000 4,006
Federal National Mortgage Assoc. - Med. Term Notes
6.36% due 8/16/00.......................................... 2,110 2,117
5.72% due 3/13/01.......................................... 1,000 978
Federal National Mortgage Assoc. - Notes
9.55% due 9/10/97.......................................... 300 308
9.55% due 12/10/97......................................... 830 859
8.45% due 7/12/99.......................................... 1,220 1,286
6.35% due 8/10/99.......................................... 50 50
International Bank of Reconstruction & Development - Global Bonds
5.875% due 7/16/97......................................... 105 105
Private Export Funding Co. - Debs
7.90% due 3/31/00.......................................... 1,000 1,049
Private Export Funding Co. - Debs.
9.10% due 10/30/98......................................... 1,025 1,080
9.50% due 3/31/99.......................................... 750 804
9.45% due 12/31/99......................................... 500 544
Private Export Funding Co. - Notes
5.75% due 4/30/98.......................................... 1,650 1,648
State of Israel Agency for International Development - Global Notes
5.75% due 3/15/00.......................................... 1,600 1,581
State of Israel Agency for International Development - Ser. 3-A
6.00% due 2/15/99.......................................... 750 750
State of Israel Agency for International Development - Ser. 6-A
6.05% due 8/15/00.......................................... 1,200 1,193
--------
34,497
U.S. Governmental-37.3%
U.S. Treasury - Notes
6.875% due 3/31/97......................................... 1,500 1,504
5.125% due 4/30/98......................................... 6,700 6,631
5.125% due 12/31/98........................................ 11,600 11,407
7.125% due 9/30/99......................................... 1,400 1,438
6.50% due 5/31/01.......................................... 900 910
--------
21,890
--------
TOTAL PUBLICLY-TRADED BONDS- 96.1% 56,387
GOVERNMENT AGENCY SHORT-TERM NOTES-2.2%
Federal Home Loan Banks
5.25% due 1/02/97.......................................... 1,310 1,310
-------- --------
TOTAL INVESTMENTS- 98.3% 57,697
Cash and receivables, less payables- 1.7% 979
-------- --------
NET ASSETS- 100.0% $ 58,676
======== ========
</TABLE>
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS
Aerospace-0.7%
Thiokol Corp. .............................................. 1,300 $ 58
UNC, Inc.* ................................................. 1,200 14
---------
72
Automotive and Rubber-1.1%
Borg-Warner Automotive, Inc. ............................... 2,000 77
Detroit Diesel Corp.* ...................................... 1,100 25
Wynn's International, Inc. ................................. 300 9
---------
111
Banks and Finance-6.8%
Cal Federal Bancorp, Inc.* ................................. 1,400 34
CCB Financial Corp. ........................................ 900 61
City National Corp. ........................................ 1,500 32
Commercial Federal Corp. ................................... 4,500 215
Cullen/Frost Bankers, Inc. ................................. 2,200 73
Deposit Guaranty Corp. ..................................... 1,800 56
Keystone Financial, Inc. ................................... 1,800 45
Mississippi Valley Bancshares, Inc. ........................ 3,800 161
One Valley Bancorp, Inc. ................................... 1,125 42
---------
719
Building Products-1.0%
Medusa Corp. ............................................... 2,200 76
Universal Forest Products, Inc. ............................ 2,300 30
---------
106
Business Services-3.4%
ABM Industries, Inc. ....................................... 8,700 160
Acxiom Corp.* .............................................. 3,200 77
Norrell Corp. .............................................. 1,500 41
RTW, Inc.* ................................................. 1,400 26
Technology Solutions Co.* .................................. 1,300 54
---------
358
Chemicals-2.2%
Dexter Corp. ............................................... 5,800 184
Lilly Industries, Inc. - Cl. A ............................. 2,600 47
---------
231
Computer Software and Services-3.5%
BancTec, Inc.* ............................................. 3,900 80
Citrix Systems, Inc.* ...................................... 1,100 43
Fair Issac & Co., Inc. ..................................... 400 16
Legato Systems, Inc.* ...................................... 1,500 49
National Data Corp. ........................................ 1,800 78
Transaction Systems Architects, Inc. - Cl. A* .............. 1,000 33
VideoServer, Inc.* ......................................... 900 38
Wind River Systems* ........................................ 600 28
---------
365
Construction-0.3%
Oakwood Homes Corp. ........................................ 1,400 32
Diversified Operations-0.8%
Lydall, Inc.* .............................................. 2,500 56
NACCO Industries, Inc. - Cl. A ............................. 600 32
---------
88
EDP and Office Equipment-0.8%
Network Appliance, Inc.* ................................... 700 36
Western Digital Corp.* ..................................... 900 51
---------
87
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Electronic and Processing Equipment-4.4%
Baldor Electric Co. ........................................ 2,000 $ 49
BMC Industries, Inc. ....................................... 2,100 66
Comverse Technology, Inc.* ................................. 700 26
Dionex Corp.* .............................................. 1,000 35
Evans & Sutherland Computer Corp.* ......................... 2,700 68
International Rectifier Corp.* ............................. 4,300 66
Methode Electronics, Inc. - Cl. A .......................... 3,400 69
Supertex, Inc.* ............................................ 900 12
Teleflex, Inc. ............................................. 1,300 68
---------
459
Engineering-0.7%
Stone & Webster, Inc. ...................................... 2,300 72
Financial Services-1.1%
Alex. Brown, Inc. .......................................... 500 36
Inter-Regional Financial Group, Inc. ....................... 2,400 85
---------
121
Food, Beverage and Tobacco-2.8%
Adolph Coors Co. - Cl. B ................................... 6,200 118
Chiquita Brands International, Inc. ........................ 3,900 50
Earthgrains Co. ............................................ 300 16
Richfood Holdings, Inc. .................................... 2,100 51
Universal Corp. ............................................ 2,000 64
---------
299
Health Products and Services-8.1%
Access Health, Inc.* ....................................... 1,200 54
ADAC Laboratories .......................................... 1,700 41
AmeriSource Health Corp. - Cl. A* .......................... 1,300 63
Bindley Western Industries, Inc. ........................... 3,600 70
Bio-Rad Laboratories, Inc. - Cl. A* ........................ 3,500 105
Genesis Health Ventures, Inc.* ............................. 1,200 37
Gilead Sciences, Inc.* ..................................... 2,100 53
Health Management Systems, Inc.* ........................... 4,400 62
Immunex Corp. .............................................. 2,200 43
Integrated Health Services, Inc. ........................... 2,800 68
Invacare Corp. ............................................. 1,800 50
Jones Medical Industries, Inc. ............................. 1,300 48
OEC Medical Systems, Inc.* ................................. 3,900 59
Renal Treatment Centers, Inc.* ............................. 300 8
Respironics, Inc.* ......................................... 1,900 33
Rexall Sundown, Inc.* ...................................... 1,000 27
TheraTech, Inc.* ........................................... 2,800 37
---------
858
Household and Personal-2.2%
Furniture Brands International, Inc.* ...................... 3,500 49
Kellwood Co. ............................................... 2,800 56
Libbey, Inc. ............................................... 1,200 33
Oneida, Ltd. ............................................... 2,700 49
Sola International, Inc.* .................................. 1,200 46
---------
233
Insurance-4.6%
Commerce Group, Inc. ....................................... 3,000 76
Horace Mann Educators Corp. ................................ 2,600 105
Mutual Risk Management, Ltd. ............................... 1 0
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Insurance-Continued
NAC Re Corp. ............................................... 1,300 $ 44
Orion Capital Corp. ........................................ 600 37
Presidential Life Corp. .................................... 500 6
Protective Life Corp. ...................................... 2,800 112
Vesta Insurance Group, Inc. ................................ 1,100 35
Zurich Reinsurance Centre Holdings, Inc. ................... 2,400 75
---------
490
Leisure and Recreation Products and Services-0.5%
Carmike Cinemas, Inc. - Cl. A* ............................. 1,900 48
Lodging and Restaurants-2.4%
CKE Restaurants, Inc. ...................................... 1,500 54
Consolidated Products, Inc.* ............................... 1,900 37
Doubletree Corp.* .......................................... 601 27
Luby's Cafeterias, Inc. .................................... 3,800 76
Primadonna Resorts, Inc.* .................................. 1,800 31
Station Casinos, Inc.* ..................................... 2,800 28
---------
253
Machinery and Equipment-4.3%
Bearings, Inc.* ............................................ 2,000 56
Blount International, Inc. - Cl. A ......................... 500 19
Commercial Intertech Corp. ................................. 3,300 45
Fisher Scientific International, Inc. ...................... 700 33
Giddings & Lewis, Inc. ..................................... 2,300 30
Global Industrial Technologies, Inc.* ...................... 2,000 44
IDEX Corp. ................................................. 1,900 76
Robbins & Myers, Inc. ...................................... 2,300 58
SPX Corp. .................................................. 2,400 93
---------
454
Media-1.1%
International Family Entertainment, Inc. - Cl. B ........... 3,100 $ 48
Renaissance Communications Corp.* .......................... 1,800 64
---------
112
Metals and Mining-3.1%
Precision Castparts Corp. .................................. 2,500 124
Quanex Corp. ............................................... 4,800 130
WHX Corp.* ................................................. 5,400 48
Zeigler Coal Holding Co. ................................... 1,300 28
---------
330
Miscellaneous-2.7%
Catalina Marketing Corp.* .................................. 500 28
ITT Educational Services, Inc. ............................. 4,950 114
Sotheby's Holdings, Inc. ................................... 7,500 139
---------
281
Oils and Natural Gas Equipment and Services-2.1%
Energy Ventures, Inc.* ..................................... 1,100 56
ONEOK, Inc. ................................................ 1,900 57
World Fuel Services Corp. .................................. 4,900 109
---------
222
Oils and Natural Gas Exploration and Production-2.0%
Helmerich & Payne, Inc. .................................... 700 36
KN Energy, Inc. ............................................ 1,400 55
Snyder Oil Corp. ........................................... 4,100 71
Tosco Corp. ................................................ 616 49
---------
211
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Paper and Forest Products-0.9%
Chesapeake Corp. ........................................... 1,300 $ 41
P.H. Glatfelter Co. ........................................ 3,300 59
---------
100
Pollution Control Equipment and Services-0.7%
Ionics, Inc.* .............................................. 1,600 77
Publications-0.8%
Central Newspapers, Inc. ................................... 900 40
Pulitzer Publishing Co. .................................... 900 42
---------
82
Real Estate Development-1.6%
Centex Corp. ............................................... 2,600 98
Highwoods Properties, Inc. ................................. 800 27
NVR, Inc.* ................................................. 3,000 39
---------
164
Real Estate Investment Trust-7.9%
Bay Apartment Communities, Inc. ............................ 1,300 47
CBL & Associates Properties, Inc. .......................... 4,800 124
Horizon Group, Inc. ........................................ 3,500 70
JP Realty, Inc. ............................................ 3,200 83
Koger Equity, Inc.* ........................................ 3,100 58
Merry Land & Investment Co., Inc. .......................... 2,800 60
MGI Properties, Inc. ....................................... 1,700 37
OMEGA Healthcare Investors, Inc. ........................... 900 30
Public Storage, Inc. ....................................... 3,500 109
RFS Hotel Investors, Inc. .................................. 4,700 93
Wellsford Residential Property Trust ....................... 4,900 119
---------
830
Retail-3.7%
Claire's Stores, Inc. ...................................... 3,300 43
Longs Drug Stores, Inc. .................................... 1,700 84
Pier 1 Imports, Inc. ....................................... 2,400 42
Riser Foods, Inc. .......................................... 1,400 44
Ross Stores, Inc. .......................................... 1,000 50
Shopko Stores, Inc. ........................................ 2,600 39
The Sports Authority, Inc. ................................. 2,200 48
United Stationers, Inc.* ................................... 2,200 43
---------
393
Soap, Cosmetics and Personal Care-0.8%
American Safety Razor Co.* ................................. 2,300 32
Carter Wallace, Inc. ....................................... 3,000 47
---------
79
Telecommunications-0.9%
Associated Group, Inc. - Cl. A ............................. 900 28
Davox Corp.* ............................................... 1,500 62
---------
90
Textiles-2.7%
G & K Services, Inc. - Cl. A ............................... 1,200 45
Nautica Enterprises, Inc. .................................. 2,600 66
Springs Industries, Inc. ................................... 1,700 73
St. John Knits, Inc. ....................................... 600 26
WestPoint Stevens, Inc.* ................................... 2,500 75
---------
285
Transportation-1.8%
APL, Ltd. .................................................. 1,200 28
Expeditors International of Washington, Inc. ............... 2,600 60
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Transportation-Continued
Heartland Express, Inc.* ................................... 4,350 $ 106
---------
194
Utilities - Electric-2.1%
Central Louisiana Electric ................................. 1,400 39
Central Maine Power Co. .................................... 3,800 44
Cilcorp, Inc. .............................................. 1,200 44
Commonwealth Energy System Cos. ............................ 2,200 52
IES Industries, Inc. ....................................... 1,500 45
---------
224
Utilities - Gas-0.6%
NUI Corp. .................................................. 2,700 61
Utilities - Telecommunications-0.3%
Atlantic Tele-Network, Inc.* ............................... 2,100 32
Water and Water Treatment Services-0.9%
Cuno, Inc.* ................................................ 3,300 49
E'Town Corp. ............................................... 1,400 44
---------
93
---------
TOTAL COMMON STOCKS- 88.4% 9,316
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-11.0%
Investment in joint trading account (Note B)
6.343% due 1/02/97......................................... $ 1,160 1,160
--------- ---------
TOTAL INVESTMENTS- 99.4% 10,476
Cash and receivables, less payables- 0.6% 65
--------- ---------
NET ASSETS- 100.0% $ 10,541
========= =========
</TABLE>
*Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS
<S> <C> <C>
Argentina-0.2%
Perez Companc SA (OILE) .................................... 4,810 $ 34
Telecom Argentina Stet-France Telecom SA - Cl. B (UTIT) .... 610 3
---------
37
Australia-1.7%
Australia & New Zealand Banking Group, Ltd. (BANK) ......... 3,000 19
Australian Gas Light Co., Ltd. (OILE) ...................... 5,000 28
Broken Hill Proprietary Co., Ltd. (DIVO) ................... 3,000 43
Coca-Cola Amatil, Ltd. (FOOD) .............................. 400 4
Commonwealth Instalment Receipt Trustee, Ltd. (BANK) ....... 2,700 17
Howard Smith, Ltd. (DIVO) .................................. 1,000 8
Lend Lease Corp. (FINL) .................................... 1,000 19
National Australia Bank, Ltd. (BANK) ....................... 2,037 24
National Mutual Holdings, Ltd.* (INSU) ..................... 6,000 9
News Corp., Ltd. (MEDI) .................................... 6,007 32
Publishing & Broadcasting, Ltd. (MEDI) ..................... 3,000 15
Sydney Harbour Casino Holdings, Ltd.* (LEIS) ............... 9,000 14
TABCORP Holdings, Ltd. (LEIS) .............................. 4,000 19
Westpac Banking Corp., Ltd. (BANK) ......................... 4,000 23
WMC, Ltd. (META) ........................................... 2,000 13
Woodside Petroleum, Ltd. (OILE) ............................ 3,000 22
---------
309
Austria-0.0%
Flughafen Wien AG (TRAN) ................................... 70 4
Belgium-1.0%
Credit Communal Holding/Dexia (BANK) ........................ 94 9
Generale de Banque SA (BANK) ............................... 110 39
Generale de Banque SA (BANK) ............................... 10 0
Kredietbank NV (BANK) ...................................... 300 98
UCB SA (HEAL) .............................................. 9 $ 23
---------
169
Canada-0.3%
Alcan Aluminium, Ltd. (META) ............................... 1,030 35
Royal Bank of Canada (BANK) ................................ 290 10
---------
45
Denmark-0.2%
Den Danske Bank (BANK) ..................................... 230 19
Tele Danmark A/S (TELE) .................................... 80 4
Unidanmark A/S - Cl. A (FINL) .............................. 260 13
---------
36
Finland-0.2%
Oy Nokia AB (TELE) ......................................... 590 34
France-8.5%
Accor SA (LODG) ............................................ 190 24
Adecco SA* (BUSI) .......................................... 205 52
Alcatel Alsthom (TELE) ..................................... 370 30
Assurances Generales de France (INSU) ...................... 430 14
AXA SA (INSU) .............................................. 312 20
Canal Plus (MEDI) .......................................... 140 31
Carrefour (RETL) ........................................... 235 153
Castorama Dubois Investisse (RETL) ......................... 70 12
Chargeurs International SA (DIVO) .......................... 90 4
Compagnie de St. Gobain (BUIL) ............................. 460 65
Compagnie Generale des Eaux (DIVO) ......................... 1,730 213
Credit Local de France (FINL) .............................. 380 33
Elf Aquitaine (OILE) ....................................... 590 54
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
France-Continued
GTM Entrepose SA (ENGI) .................................... 200 $ 9
Guilbert SA (EDPE) ......................................... 160 31
Havas SA (MEDI) ............................................ 160 11
L'Oreal (SOAP) ............................................. 65 24
Lapeyre SA (BUIL) .......................................... 380 22
Legrand SA (ETRN) .......................................... 144 25
Moet Hennessy-Louis Vuitton (MISC) ......................... 390 109
Pathe SA* (MEDI) ........................................... 110 27
Pinault-Printemps-Redoute SA (RETL) ........................ 380 151
Primagaz Cie (OILE) ........................................ 240 28
Rexel SA (ETRN) ............................................ 90 27
Sanofi SA (HEAL) ........................................... 540 54
Schneider SA (ETRN) ........................................ 575 27
Societe Generale de Paris (BANK) ........................... 100 11
Societe Television Francaise 1 (MEDI) ...................... 690 66
Sodexho SA (MISC) .......................................... 150 84
Total SA - Cl. B (OILS) .................................... 1,311 107
---------
1,518
Germany-3.6%
Allianz AG Holding (INSU).................................... 33 60
Altana AG (DIVO)............................................. 10 8
Bayer AG (CHEM).............................................. 3,331 136
Bilfinger & Berger Bau AG (CONS)............................. 500 18
Buderus AG (MACH)............................................ 30 15
Deutsche Bank AG (BANK)...................................... 359 17
Fielmann AG - Pref. (RETL)................................... 130 4
Gehe AG (HEAL)............................................... 1,858 119
Hoechst AG (CHEM)............................................ 490 23
Hornbach Holding AG - Pref. (RETL)........................... 200 14
Hornback Baumarkt Aktiengesellschaft (RETL).................. 80 3
Krones AG (MACH)............................................. 40 15
Mannesmann AG (DIVO)......................................... 70 30
Praktiker Bau-und Heimwerkemaerkte AG* (RETL)................ 180 4
Rhoen-Klinikum AG (HEAL)..................................... 310 32
SAP AG (SOFT)................................................ 100 14
SAP AG (SOFT)................................................ 120 17
Schering AG (HEAL)........................................... 300 25
VEBA AG (UTIE)............................................... 1,400 81
Volkswagen AG (AUTO)......................................... 40 17
---------
652
Hong Kong-4.0%
Cathay Pacific Airways (TRAN)................................ 19,000 30
Dao Heng Bank Group, Ltd. (BANK)............................. 9,000 43
First Pacific Co., Ltd. (DIVO)............................... 35,000 45
Guangdong Investments (DIVO)................................. 34,000 33
Guangzhou Investment Co., Ltd. (REAL)........................ 72,000 34
Guoco Group Ltd. (FINL)...................................... 11,000 62
Hopewell Holdings, Ltd. (REAL)............................... 80,000 52
Hutchison Whampoa, Ltd. (DIVO)............................... 12,000 94
New World Development Co., Ltd. (REAL)....................... 18,000 122
Shanghai Petrochemical Co., Ltd. (CHEM)...................... 78,000 24
Swire Pacific, Ltd. - Cl. A (DIVO)........................... 8,000 76
Wharf (Holdings), Ltd. (REAL)................................ 18,000 90
Yizheng Chemical Fibre Co., Ltd. - Cl. A (TEXT).............. 56,000 14
---------
719
Indonisia-0.0%
PT Telekomunikasi Indonesia (UTIT)........................... 4,000 7
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Italy-1.5%
Banca Fideuram (BANK)........................................ 7,770 $ 17
Danieli & Co. (ENGI)......................................... 1,000 4
Ente Nazionale Idrocarburi SpA (OILS)........................ 3,000 15
Finanziaria Autogrill SpA* (LODG)............................ 2,000 2
Istituto Mobiliare Italiano SpA (FINL)....................... 2,960 25
Istituto Nazionale delle Assicurazioni (INSU)................ 3,000 4
Italgas SpA (UTIG)........................................... 4,000 17
La Rinascente SpA (RETL)..................................... 1,000 6
Mediolanum SpA* (INSU)....................................... 1,030 10
Stet-Societa Finanziaria Telefonica SpA (TELE)............... 12,000 55
Stet-Societa Finanziaria Telefonica SpA (TELE)............... 5,000 17
Telecom Italia Mobile SpA (UTIT)............................. 5,000 7
Telecom Italia Mobile SpA (UTIT)............................. 24,000 61
Telecom Italia SpA (UTIT).................................... 10,000 26
Unicem SpA* (BUIL)........................................... 1,000 7
---------
273
Japan-20.1%
Alps Electric Co. (ETRN)..................................... 2,000 22
Amada Co., Ltd (MACH)........................................ 5,000 39
Canon, Inc. (EDPE)........................................... 7,000 155
Citizen Watch Co., Ltd. (HOUS)............................... 3,000 22
Daifuku Co., Ltd. (MACH)..................................... 1,000 13
Daiichi Pharm Co., Ltd. (HEAL)............................... 5,000 80
Dainippon Screen Manufacturing Co., Ltd. (EDPE).............. 4,000 30
Daiwa House Industry Co., Ltd. (CONS)........................ 6,000 77
DDI Corp. (UTIT)............................................. 8 53
East Japan Railway Co. (TRAN)................................ 16 72
Fanuc (MACH)................................................. 1,000 32
Hitachi Zosen Corp. (META)................................... 7,000 27
Hitachi, Ltd. (ETRN)......................................... 7,000 65
Honda Motor Co. (AUTO)....................................... 1,000 29
Inax Corp. (BUIL)............................................ 2,000 15
Ishihara Sangyo Kaisha* (CHEM)............................... 2,000 5
Ito-Yokado Co., Ltd. (RETL).................................. 2,000 87
KAO Corp. (SOAP)............................................. 2,000 23
Kokuyo Co. (EDPE)............................................ 2,000 49
Komatsu, Ltd. (MACH)......................................... 6,000 49
Komori Corp. (MACH).......................................... 2,000 42
Kumagai Gumi Co., Ltd. (CONS)................................ 4,000 10
Kuraray Co., Ltd. (TEXT)..................................... 5,000 46
Kyocera Corp. (ETRN)......................................... 2,000 125
Makita Corp. (MACH).......................................... 4,000 56
Marui Co., Ltd. (RETL)....................................... 4,000 72
Matsushita Electric Industrial Co.* (ETRN)................... 6,000 98
Mitsubishi Corp. (DIVO)...................................... 3,000 31
Mitsubishi Heavy Industries, Ltd. (AERO)..................... 19,000 151
Mitsubishi Paper Mills (PAPR)................................ 3,000 12
Mitsui Fudosan (REAL)........................................ 10,000 100
Mitsui Petrochemical Co. (CHEM).............................. 2,000 10
Murata Manufacturing Co., Ltd (ETRN)......................... 2,000 66
National House Industrial (BUIL)............................. 1,000 13
NEC Corp. (SOFT)............................................. 12,000 145
Nippon Hodo (CONS)........................................... 1,000 12
Nippon Steel Co. (META)...................................... 30,000 89
Nippon Telegraph & Telephone Corp. (UTIT).................... 6 45
Nippondenso Co., Ltd. (ETRN)................................. 6,000 145
Nomura Securities Co., Ltd. (FINL)........................... 6,000 90
Pioneer Electronic Corp. (ETRN).............................. 3,000 57
Sangetsu Co., Ltd. (HOUS).................................... 1,000 21
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Japan-Continued
Sankyo Co., Ltd. (HEAL)...................................... 5,000 $ 142
Sega Enterprises (LEIS)...................................... 500 17
Sekisui Chemical Co. (CHEM).................................. 7,000 71
Sekisui House, Ltd. (READ)................................... 4,000 41
Seven-Eleven Japan (RETL).................................... 1,000 59
Sharp Corp. (ETRN)........................................... 6,000 85
Shin-Etsu Chemical Co. (CHEM)................................ 4,000 73
Sony Corp. (AUDI)............................................ 1,600 105
Sumitomo Corp. (DIVO)........................................ 8,000 63
Sumitomo Electric Industries (ETRN).......................... 10,000 140
Sumitomo Forestry Co. (PAPR)................................. 3,000 37
TDK Corp. (ETRN)............................................. 2,000 130
Teijin, Ltd. (TEXT).......................................... 13,000 57
Tokio Marine & Fire Insurance Co. (INSU)..................... 3,000 28
Tokyo Electron, Ltd. (ETRN).................................. 1,000 31
Tokyo Steel Manufacturing (META)............................. 2,500 36
Toppan Printing Co. (PUBL)................................... 4,000 50
UNY Co., Ltd. (RETL)......................................... 2,000 37
Yurtec Corp. (ENGI).......................................... 1,050 14
---------
3,596
Malasia-3.0%
Affin Holdings Berhad (FINL)................................. 28,000 77
Berjaya Sports Toto Berhad (DIVO)............................ 13,000 65
Commerce Asset Holding Bhd (BANK)............................ 5,000 38
MBF Capital Berhad (FINL).................................... 16,000 26
Multi-Purpose Holdings Berhad* (DIVO)........................ 27,000 52
Renong Berhad (DIVO)......................................... 31,000 55
Resorts World Berhad (LEIS).................................. 6,000 27
Tanjong plc (LEIS)........................................... 13,000 52
Technology Resources Industries Berhad* (TELE)............... 11,000 22
Time Engineering Berhad (DIVO)............................... 9,000 17
United Engineers (Malaysia), Ltd. (DIVO)..................... 12,000 108
---------
539
Mexico-0.6%
Cemex SA de CV (BUIL)........................................ 2,000 8
Fomento Economico Mexicano SA de CV (FOOD)................... 3,000 10
Gruma SA* (FOOD)............................................. 4,868 30
Grupo Financiero Banamex Accival SA de CV* (BANK)............ 6,300 13
Grupo Industrial Maseca SA de CV (FOOD)...................... 12,630 16
Grupo Modelo SA de CV (FOOD)................................. 2,000 12
Kimberly-Clark de Mexico SA de CV (PAPR)..................... 1,000 20
---------
109
Netherlands-10.0%
ABN Amro Holding NV (BANK)................................... 1,450 94
Akzo Nobel NV (CHEM)......................................... 130 18
CSM NV (FOOD)................................................ 1,418 79
Elsevier NV (PUBL)........................................... 19,300 325
Fortis Amev NV (FINL)........................................ 1,520 53
Hagemeyer NV (MISC).......................................... 340 27
ING Groep NV (BANK).......................................... 3,890 140
Koninklijke Ahold NV (RETL).................................. 1,010 63
Koninklijke PTT Nederland NV (TELE).......................... 550 21
Nutricia Vereenigde Bedrijven NV (FOOD)...................... 241 37
Otra NV (ETRN)............................................... 240 4
PolyGram NV (LEIS)........................................... 1,910 97
Royal Dutch Petroleum Co. (OILS)............................. 1,980 346
Unilever NV (DIVO)........................................... 620 110
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS-Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Netherlands-Continued
Wolters Kluwer NV (PUBL)..................................... 2,820 $ 374
---------
1,788
New Zealand-0.5%
Carter Holt Harvey, Ltd. (PAPR).............................. 3,500 8
Fernz Corp., Ltd. (CHEM)..................................... 2,000 7
Fletcher Challenge Building (BUIL)........................... 4,000 12
Fletcher Challenge Energy (OILS)............................. 1,000 3
Fletcher Challenge Forests (PAPR)............................ 9,000 15
Fletcher Challenge Paper (PAPR).............................. 1,000 2
Telecom Corp. of New Zealand (UTIT).......................... 8,000 41
---------
88
Norway-1.5%
Bergesen dy AS (TRAN)........................................ 250 6
Norsk Hydro AS (CHEM)........................................ 2,530 135
Orkla AS (DIVO).............................................. 1,710 118
Saga Petroleum AS - Cl. B (OILS)............................. 400 6
---------
265
Philippines-0.2%
Philippine National Bank* (BANK)............................. 3,000 36
Portugal-0.4%
Estabelecimentos Jeronimo Martins & Filho, Sociedade Gestora
de Participacoes Sociais SA (RETL)......................... 840 43
Estabelecimentos Jeronimo Martins & Filho, Sociedade Gestora
de Participacoes Sociais SA (RETL)......................... 560 27
---------
70
Singapore-2.8%
City Developments, Ltd. (READ)............................... 2,000 18
DBS Land, Ltd. (REAL)........................................ 7,000 26
Development Bank of Singapore, Ltd. (BANK)................... 2,000 27
Far East Levingston Shipbuilding, Ltd. (OILE)................ 2,000 10
Fraser & Neave, Ltd. (FOOD).................................. 3,000 31
Hong Kong Land Holdings, Ltd. (READ)......................... 43,000 120
Keppel Corp., Ltd. (DIVO) ................................... 2,000 16
Overseas Union Bank, Ltd. (BANK)............................. 9,000 69
Singapore Airlines, Ltd. (TRAN).............................. 1,000 9
Singapore Land, Ltd. (REAL).................................. 8,000 44
Singapore Press Holdings, Ltd. (PUBL)........................ 3,000 59
Total Access Communication Public Co., Ltd (TELE)............ 600 4
United Industrial Corp. (DIVO)............................... 9,000 8
United Overseas Bank, Ltd. (BANK)............................ 6,000 67
---------
508
South Korea-0.2%
Samsung Electrics* (ETRN).................................... 1,520 28
Spain-2.5%
Banco Popular Espanol SA (BANK).............................. 230 45
Banco Santander SA (BANK).................................... 800 51
Centros Comerciales Continente SA* (RETL).................... 220 5
Centros Comerciales Pryca SA (RETL).......................... 610 13
Corporacion Bancaria de Espana SA (BANK)..................... 480 21
Empresa Nacional de Electricidad SA* (UTIE).................. 1,356 97
Fomento de Construcciones y Contratas SA (CONS).............. 80 7
Gas Natural SDG (UTIG)....................................... 290 67
General de Aguas de Barcelona SA (WATR)...................... 171 7
Iberdrola SA (UTIE).......................................... 3,120 44
Repsol SA (OILS)............................................. 1,710 66
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Spain-Continued
Sociedade General de Aguas de Barcelona SA* (WATR)........... 2 $ 0
Telefonica de Espana (UTIT).................................. 840 20
---------
443
Sweden-2.5%
ABB AB (MACH)................................................ 260 29
Astra AB - ADR Ser. A (HEAL)................................. 3,930 190
Atlas Corp. (META)........................................... 1,500 37
Electrolux AB - Ser. B (HOUS)................................ 990 57
Esselte AB - Cl. B (EDPE).................................... 220 5
Hennes & Mauritz AB (RETL)................................... 380 53
Sandvik AB - Cl. A (MACH).................................... 1,410 38
Sandvik AB - Cl. B (MACH).................................... 1,410 38
Scribona AB (EDPE)........................................... 290 3
---------
450
Switzerland-3.6%
ABB AG (MACH)................................................ 90 112
CS Holding AG (BANK)......................................... 250 26
Nestle SA (FOOD)............................................. 130 140
Novartis AG* (HEAL).......................................... 161 184
Roche Holdings AG (HEAL)..................................... 17 132
Schweizerischer Bankverein (BANK)............................ 240 46
---------
640
Thailand-0.3%
Advanced Info Service plc (TELE)............................. 1,300 11
Bangkok Bank Co., Ltd. (BANK)................................ 2,400 23
Siam Cement Public Co., Ltd. (BUIL).......................... 100 3
Siam Commercial Bank Public Co., Ltd. (BANK)................. 1,750 13
Thai Farmers Bank Public Co., Ltd. (BANK).................... 1,800 11
---------
61
United Kingdom-15.5%
Abbey National First Capital BV (BANK)....................... 12,000 157
Argos plc (RETL)............................................. 6,733 88
Asda Group plc (RETL)........................................ 31,000 65
British Gas plc (UTIG)....................................... 7,000 27
British Petroleum Co. plc - ADR* (OILS)...................... 5,000 60
Cable & Wireless plc (TELE).................................. 11,000 92
Cadbury Schweppes plc (FOOD)................................. 9,000 76
Caradon plc (DIVO)........................................... 15,000 62
Coats Viyella plc (TEXT)..................................... 4,000 9
Compass Group plc (LODG)..................................... 4,000 42
David S. Smith Holdings plc (PAPR)........................... 8,000 43
East Midlands Electricity plc (UTIE)......................... 2,000 23
Electrocomponents plc (ETRN)................................. 2,000 16
GKN plc (AUTO)............................................... 1,000 17
Glaxo Wellcome plc - ADR (HEAL).............................. 8,000 130
Grand Metropolitan plc (FOOD)................................ 13,000 102
Guinness plc (FOOD).......................................... 12,000 94
Heywood Williams Group plc (BUIL)............................ 2,000 8
Hillsdown Holdings plc (FOOD)................................ 4,000 14
John Laing plc (CONS)........................................ 3,000 14
Kingfisher plc (RETL)........................................ 12,000 130
Ladbroke Group plc (LEIS).................................... 8,000 32
London Electricity plc (UTIE)................................ 4,000 47
National Westminster Bank plc (BANK)......................... 20,000 234
Rank Group plc (LEIS)........................................ 9,000 68
Reed International plc (PUBL)................................ 11,000 206
Rolls Royce plc (AERO)....................................... 4,000 18
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS-Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
United Kingdom-Continued
RTZ Corp. plc (META)......................................... 6,000 $ 96
Safeway plc (RETL)........................................... 10,000 69
Sears plc (RETL)............................................. 3,000 5
Shell Transport & Trading Co. plc (OILS)..................... 9,000 156
Smithkline Beecham plc (HEAL)................................ 19,000 262
T & N plc (AUTO)............................................. 10,000 30
Tesco plc (RETL)............................................. 9,000 55
Tomkins plc (DIVO)........................................... 25,000 116
United News & Media plc (PUBL)............................... 10,000 119
---------
2,782
United States-5.4%
Banco de Galicia y Buenos Aires SA de CV (BANK).............. 511 12
Banco Frances del Rio de la Plata SA (BANK).................. 737 20
Banco Latinoamericano de Exportaciones SA - Cl. E (BANK)..... 176 9
Brazil Fund, Inc. (FUND)..................................... 860 19
Cemex SA de CV - ADR* (BUIL)................................. 6,030 44
Centrais Electricas Brasileiras SA - Eletrobras (UTIE)....... 3,252 58
Chile Fund, Inc. (FUND)...................................... 610 13
Chilectra SA - ADR (UTIE).................................... 258 14
Chilgener SA - ADR (UTIE).................................... 240 5
Cia. de Telecomunicaciones de Chile SA (UTIT)................ 138 14
Cifra SA de CV - ADR* (RETL)................................. 21,176 25
Companhia Brasileira de Distribuicao Grupo Pao
de Acucar (RETL)........................................... 1,057 19
Companhia Energetica de Minas (UTIE)......................... 1,551 53
Compania Anonima Nacional Telefonos de Venezuela* (UTIT)..... 370 10
Compania Cervecerias Unidas SA (FOOD)........................ 200 3
Empresa Nacional de Electricidad SA (UTIE)................... 878 14
Enersis SA - ADR (UTIE)...................................... 503 14
EVN Energie-Versorgung Niederoesterreich AG (UTIE)........... 20 3
Gruma SA* (FOOD)............................................. 394 10
Grupo Televisa SA - GDR* (MEDI).............................. 207 5
Gucci Group NV (TEXT)........................................ 127 8
Huaneng Power International, Inc. - ADR* (UTIE).............. 2,000 45
Korea Electric Power Corp. (UTIE)............................ 1,800 37
Korea Fund, Inc. (FUND)...................................... 2,792 42
Lojas Americanas SA (RETL)................................... 925 12
Panamerican Beverages, Inc. - Cl. A (FOOD)................... 580 27
Sociedad Comercial del Plata - ADR* (CHEM)................... 100 3
Stora Kopparbergs Bergslags Aktiebolag - Cl. B (PAPR)........ 1,000 14
Telecom Argentina Stet-France Telecom SA - ADR (UTIT)........ 70 3
Telecomunicacoes Brasileiras S/A-Telebras - ADR (TELE)....... 3,144 240
Telefonica de Argentina SA - ADR (UTIT)...................... 1,160 30
Telefonica del Peru SA - ADR (TELE).......................... 230 4
Telefonos de Mexico SA - ADR (UTIT).......................... 1,560 51
Transportadora de Gas del Sur SA (OILS)...................... 240 3
Usinas Siderurgicas de Minas Gerais S/A* (META).............. 5,449 56
YPF Sociedad Anonima - ADR (OILS)............................ 1,100 28
---------
967
---------
TOTAL COMMON STOCKS- 90.3% 16,173
WARRANTS
Estabelecimentos Jeronimo Martins & Filho, Sociedade Gestora
de Participacoes Sociais SA
expires 3/27/97 (Cost $7) ................................. 0 8
ING Groep NV
expires 3/15/01 (Cost $20) ................................ 4 27
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS-Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
WARRANTS-CONTINUED
La Rinascente SpA
expires 11/30/99........................................... $ 0 $ 0
United Overseas Bank, Ltd.
expires 6/17/97 (Cost $8) ................................. 2 7
---------
TOTAL WARRANTS- 0.2% 42
RIGHTS
Estabelecimentos Jeronimo Martins & Filho, Sociedade Gestora
de Participacoes Sociais SA expires 1/02/97................ 1 14
Multi-Purpose Holdings Berhad
expires 1/07/97............................................ 27 1
---------
TOTAL RIGHTS- 0.1% 15
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS-7.8%
Investment in joint trading account (Note B)
6.343% due 1/02/97......................................... $ 1,389 1,389
--------- ---------
TOTAL INVESTMENTS- 98.4% 17,619
Cash and receivables, less payables- 1.6% 279
--------- ---------
NET ASSETS- 100.0% $ 17,898
========= =========
</TABLE>
ADR-American Depository Receipt
*Non-income producing security.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Industry Value Securities
Industry Abbreviations (000's) at Value
<S> <C> <C> <C>
Banks and Finance................................... BANK 1,498 9.2%
Diversified Operations.............................. DIVO 1,375 8.5%
Health Products and Services........................ HEAL 1,373 8.5%
Retail.............................................. RETL 1,273 7.8%
Publications........................................ PUBL 1,133 7.0%
Electronic and Processing Equipment................. ETRN 1,092 6.7%
Oils and Natural Gas Exploration and Production..... OILS 928 5.8%
Food, Beverage and Tobacco.......................... FOOD 685 4.2%
Utilities - Electric................................ UTIE 535 3.3%
Telecommunications.................................. TELE 534 3.3%
Chemicals........................................... CHEM 505 3.1%
Machinery and Equipment............................. MACH 478 3.0%
Real Estate......................................... REAL 468 2.9%
Financial Services.................................. FINL 398 2.5%
Metals and Mining................................... META 389 2.4%
Utilities - Telecommunications...................... UTIT 371 2.3%
Leisure and Recreation Products and Services........ LEIS 326 2.0%
EDP and Office Equipment............................ EDPE 273 1.7%
Miscellaneous....................................... MISC 220 1.4%
Building Products................................... BUIL 197 1.2%
Media............................................... MEDI 187 1.2%
Real Estate Development............................. READ 179 1.1%
Computer Software and Services...................... SOFT 176 1.1%
Aerospace........................................... AERO 169 1.0%
Paper and Forest Products........................... PAPR 151 0.9%
Insurance........................................... INSU 145 0.9%
Construction........................................ CONS 138 0.9%
Textiles............................................ TEXT 134 0.8%
Transportation...................................... TRAN 121 0.8%
Utilities - Gas..................................... UTIG 111 0.7%
Audio/Video Home Products........................... AUDI 105 0.7%
Household and Personal.............................. HOUS 100 0.6%
Automotive and Rubber............................... AUTO 93 0.6%
Investment Companies................................ FUND 74 0.5%
Lodging and Restaurants............................. LODG 68 0.4%
Business Services................................... BUSI 52 0.3%
Soap, Cosmetics and Personal Care................... SOAP 47 0.3%
Oils and Natural Gas Equipment and Services......... OILE 38 0.2%
Engineering......................................... ENGI 27 0.2%
Water and Water Treatment Services.................. WATR 7 0.0%
--------- ---------
$ 16,173 100.0%
========= =========
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS
<S> <C> <C>
Aerospace-1.9%
Boeing Co. ................................................. 929 $ 99
General Dynamics Corp. ..................................... 200 14
Lockheed Martin Corp. ...................................... 600 55
McDonnell Douglas Corp. .................................... 500 32
Raytheon Co. ............................................... 700 34
United Technologies Corp. .................................. 700 46
--------
280
Automotive and Rubber-2.5%
Chrysler Corp. ............................................. 2,000 66
Eaton Corp. ................................................ 300 21
Ford Motor Co. ............................................. 3,200 102
General Motors Corp. ....................................... 2,000 112
Genuine Parts Co. .......................................... 500 22
Goodyear Tire & Rubber Co. ................................. 400 21
TRW, Inc. .................................................. 300 15
--------
359
Banks and Finance-7.2%
Banc One Corp. ............................................. 1,200 52
BankBoston Corp. ........................................... 400 26
Bank of New York Co., Inc. ................................. 1,100 37
BankAmerica Corp. .......................................... 900 90
Barnett Banks, Inc. ........................................ 400 16
Boatmen's Bancshares, Inc. ................................. 500 32
Chase Manhattan Corp. ...................................... 1,100 98
Citicorp ................................................... 1,200 124
Corestates Financial Corp. ................................. 200 10
Fifth Third Bancorp ........................................ 200 13
First Bank System, Inc. .................................... 500 34
First Union Corp. .......................................... 800 59
Fleet Financial Group, Inc. ................................ 800 40
KeyCorp .................................................... 800 40
MBNA Corp. ................................................. 600 25
Mellon Bank Corp. .......................................... 500 36
J.P. Morgan & Co., Inc. .................................... 500 49
National City Corp. ........................................ 200 9
NationsBank Corp. .......................................... 700 68
Norwest Corp. .............................................. 1,100 48
PNC Bank Corp. ............................................. 300 11
Suntrust Banks, Inc. ....................................... 200 10
U.S. Bancorp ............................................... 700 31
Wachovia Corp. ............................................. 400 23
Wells Fargo & Co. .......................................... 200 54
Comerica, Inc. ............................................. 300 16
--------
1,051
Building Products-0.1%
Masco Corp. ................................................ 300 11
Sherwin-Williams Co. ....................................... 200 11
--------
22
Business Services-0.2%
ACNielson Corp.* ........................................... 133 2
Ceridian Corp.* ............................................ 300 12
Dun & Bradstreet Corp.* .................................... 400 10
---------
24
Chemicals-3.1%
Air Products & Chemicals, Inc. ............................. 400 28
Dow Chemical Co. ........................................... 700 55
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Chemicals-Continued
E.I. du Pont de Nemours & Co. .............................. 1,500 $ 142
Eastman Chemical Co. ....................................... 300 17
Engelhard Corp. ............................................ 400 8
W.R. Grace & Co. ........................................... 300 16
Great Lakes Chemical Corp. ................................. 200 9
Hercules, Inc. ............................................. 400 17
Monsanto Co. ............................................... 1,600 62
Morton International, Inc. ................................. 200 8
PPG Industries, Inc. ....................................... 500 28
Praxair, Inc. .............................................. 400 18
Rohm & Haas Co. ............................................ 200 16
Sigma-Aldrich Corp. ........................................ 100 6
Union Carbide Corp. ........................................ 500 20
---------
450
Computer Software and Services-3.3%
Automatic Data Processing, Inc. ............................ 800 34
Cabletron Systems, Inc.* ................................... 600 20
Computer Associates International, Inc. .................... 950 47
Computer Sciences Corp.* ................................... 200 16
First Data Corp. ........................................... 1,200 44
Microsoft Corp.* ........................................... 3,000 247
Novell, Inc.* .............................................. 1,000 9
Oracle Corp.* .............................................. 1,700 71
---------
488
Diversified Operations-2.8%
American Brands, Inc. ...................................... 500 25
Cognizant Corp. ............................................ 500 17
Corning, Inc. .............................................. 300 14
ITT Industries, Inc. ....................................... 200 5
Illinois Tool Works, Inc. .................................. 400 32
Loews Corp. ................................................ 200 19
Minnesota Mining & Manufacturing Co. ....................... 1,100 91
Sara Lee Corp. ............................................. 1,200 45
Tenneco, Inc. .............................................. 600 27
Textron, Inc. .............................................. 300 28
Trinova Corp. .............................................. 200 7
Tyco International, Ltd. ................................... 500 26
Unilever NV ................................................ 400 70
---------
406
EDP and Office Equipment-3.1%
Alco Standard Corp. ........................................ 400 21
Apple Computer, Inc.* ...................................... 500 10
Compaq Computer Corp.* ..................................... 700 52
Dell Computer Corp.* ....................................... 500 27
Digital Equipment Corp.* ................................... 400 15
John H. Harland Co. ........................................ 400 13
IBM Corp. .................................................. 1,300 196
Seagate Technology, Inc.* .................................. 400 16
Silicon Graphics, Inc.* .................................... 600 15
Xerox Corp. ................................................ 900 47
Pitney Bowes, Inc. ......................................... 700 38
---------
450
Electronic and Processing Equipment-9.6%
Advanced Micro Devices, Inc.* .............................. 300 8
AMP, Inc. .................................................. 600 23
Applied Materials, Inc.* ................................... 500 18
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS--Continued
- --------------------------------------------------------------------------------
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
Electronic and Processing Equipment-Continued
<S> <C> <C>
Bay Networks, Inc.* ........................................ 500 $ 10
Cisco Systems, Inc.* ....................................... 1,700 108
DSC Communications Corp.* .................................. 300 5
EMC Corp.* ................................................. 600 20
Emerson Electric Co. ....................................... 700 68
General Electric Co. ....................................... 4,100 404
General Instrument Corp.* .................................. 400 9
Hewlett-Packard Co. ........................................ 2,600 131
Intel Corp. ................................................ 2,100 274
LSI Logic Corp.* ........................................... 400 11
Micron Technology, Inc. .................................... 500 15
Motorola, Inc. ............................................. 1,500 92
National Semiconductor Corp.* .............................. 200 5
Rockwell International Corp.* .............................. 700 43
Sun Microsystems, Inc.* .................................... 1,500 39
Texas Instruments, Inc. .................................... 500 32
3Com Corp.* ................................................ 400 29
Westinghouse Electric Corp. ................................ 1,400 28
Honeywell, Inc. ............................................ 500 33
---------
1,405
Engineering-0.2%
Fluor Corp. ................................................ 400 25
Financial Services-2.1%
H.F. Ahmanson & Co. ........................................ 800 26
American Express Co. ....................................... 1,200 68
H & R Block, Inc. .......................................... 300 9
Dean Witter Discover & Co. ................................. 500 33
First Chicago NBD Corp. .................................... 1,000 54
Green Tree Financial Corp. ................................. 400 15
Household International, Inc. .............................. 200 18
Merrill Lynch & Co., Inc. .................................. 400 33
Morgan Stanley Group, Inc. ................................. 400 23
RyderSystem, Inc. .......................................... 400 11
Salomon, Inc. .............................................. 300 14
---------
304
Food, Beverage and Tobacco-7.6%
Albertsons, Inc. ........................................... 700 25
Anheuser-Busch Cos., Inc. .................................. 1,300 52
Archer-Daniels-Midland Co. ................................. 1,330 29
CPC International, Inc. .................................... 500 39
Campbell Soup Co. .......................................... 500 40
Coca-Cola Co. .............................................. 6,400 336
ConAgra, Inc. .............................................. 700 35
Fleming Cos., Inc. ......................................... 400 7
General Mills, Inc. ........................................ 500 32
H.J. Heinz Co. ............................................. 1,100 39
Kellogg Co. ................................................ 600 39
PepsiCo, Inc. .............................................. 4,100 120
Philip Morris Cos., Inc. ................................... 1,800 202
Pioneer Hi-Bred International, Inc. ........................ 100 7
Quaker Oats Co. ............................................ 400 15
Ralston-Ralston Purina Group ............................... 100 7
Seagram Co., Ltd. .......................................... 600 23
UST, Inc. .................................................. 1,100 36
Wm. Wrigley Jr. Co. ........................................ 200 11
Sysco Corp. ................................................ 600 20
---------
1,114
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Government Agencies-1.0%
Federal Home Loan Mortgage Corp. ........................... 300 $ 33
Federal National Mortgage Assoc. ........................... 3,100 115
---------
148
Health Products and Services-10.0%
Abbott Laboratories ........................................ 2,000 102
Alza Corp.* ................................................ 300 8
American Home Products Corp.* .............................. 1,600 94
Amgen, Inc.* ............................................... 700 38
C.R. Bard, Inc. ............................................ 400 11
Baxter International, Inc. ................................. 900 37
Becton, Dickinson & Co. .................................... 300 13
Boston Scientific Corp.* ................................... 500 30
Bristol-Myers Squibb Co. ................................... 1,200 131
CVS Corp. .................................................. 400 17
Columbia/HCA Healthcare Corp. .............................. 1,650 67
Fresenius Medical Care AG - Pref.* ......................... 300 0
Humana, Inc.* .............................................. 400 8
Johnson & Johnson .......................................... 3,300 164
Eli Lilly & Co. ............................................ 1,400 102
Mallinckrodt, Inc. ......................................... 100 4
Manor Care, Inc. ........................................... 100 3
Medtronic, Inc. ............................................ 700 48
Merck & Co., Inc. .......................................... 3,000 237
Pharmacia & Upjohn, Inc. ................................... 1,400 55
Pfizer, Inc. ............................................... 1,600 133
St. Jude Medical, Inc.* .................................... 300 13
Schering-Plough Corp. ...................................... 1,000 65
Tenet Healthcare Corp. ..................................... 500 11
United Healthcare Corp. .................................... 500 23
Warner-Lambert Co. ......................................... 700 $ 53
---------
1,467
Household and Personal-2.7%
Clorox Co. ................................................. 200 20
Colgate-Palmolive Co. ...................................... 400 37
Newell Co. ................................................. 100 3
Procter & Gamble Co. ....................................... 1,700 183
Reebok International, Ltd. ................................. 300 13
Tupperware Corp. ........................................... 200 11
Whirlpool Corp. ............................................ 400 19
Avon Products, Inc. ........................................ 400 23
Gillette Co. ............................................... 1,200 93
---------
402
Insurance-3.9%
Aetna, Inc. ................................................ 500 40
Alexander & Alexander Services, Inc. ....................... 300 5
Allstate Corp. ............................................. 1,300 75
American General Corp. ..................................... 300 12
American International Group, Inc. ......................... 1,200 130
Aon Corp. .................................................. 400 25
Cigna Corp. ................................................ 200 27
Chubb Corp. ................................................ 600 32
General Re Corp. ........................................... 300 47
Marsh & McLennan Cos., Inc. ................................ 200 21
Providian Corp. ............................................ 300 15
Safeco Corp. ............................................... 500 20
St. Paul Cos., Inc. ........................................ 300 18
Travelers Group, Inc. ...................................... 1,333 60
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Insurance-Continued
UNUM Corp. ................................................. 100 $ 7
USLIFE Corp. ............................................... 400 13
ITT Hartford Group, Inc. ................................... 400 27
---------
574
Leisure and Recreation Products and Services-1.1%
Brunswick Corp. ............................................ 300 7
The Walt Disney Co. ........................................ 1,800 125
Harrah's Entertainment, Inc.* .............................. 300 6
Mattel, Inc. ............................................... 700 19
---------
157
Lodging and Restaurants-1.2%
HFS, Inc.* ................................................. 400 24
Hilton Hotels Corp. ........................................ 800 21
ITT Corp.* ................................................. 400 17
Luby's Cafeterias, Inc. .................................... 300 6
Marriot International, Inc. ................................ 400 22
McDonald's Corp. ........................................... 1,900 86
---------
176
Machinery and Equipment-1.3%
Allied Signal, Inc. ........................................ 800 54
Black & Decker Corp. ....................................... 100 3
Case Corp. ................................................. 200 11
Caterpillar, Inc. .......................................... 600 45
Cooper Industries, Inc. .................................... 400 17
Deere & Co. ................................................ 800 33
Dover Corp. ................................................ 200 10
Parker-Hannifin Corp. ...................................... 100 4
Ingersoll-Rand Co. ......................................... 200 9
Cincinnati Milacron, Inc. .................................. 200 $ 4
---------
190
Media-1.6%
CUC International, Inc.* ................................... 1,050 25
Comcast Corp. - Cl. A ...................................... 300 5
New York Times Co. - Cl. A ................................. 400 15
Tele-Communications, Inc.* ................................. 1,200 16
Time Warner, Inc. - Debs. .................................. 1,400 53
Tribune Co. ................................................ 200 16
U.S. West, Inc.* ........................................... 1,200 22
Viacom, Inc. - Cl. B* ...................................... 800 28
Gannett Co., Inc. .......................................... 500 37
Knight-Ridder, Inc. ........................................ 200 8
McGraw-Hill Cos., Inc. ..................................... 200 9
---------
234
Metals and Mining-1.5%
Alcan Aluminium, Ltd. ...................................... 300 10
Allegheny Teldyne, Inc. .................................... 292 7
Aluminum Co. of America .................................... 500 32
Barrick Gold Corp. ......................................... 800 23
Bethlehem Steel Corp.* ..................................... 200 2
Cyprus Amax Minerals Co. ................................... 400 9
Homestake Mining Co. ....................................... 600 9
Inco, Ltd. ................................................. 500 16
Newmont Mining Corp. ....................................... 400 18
Nucor Corp. ................................................ 300 15
Phelps Dodge Corp. ......................................... 300 20
Placer Dome, Inc. .......................................... 700 15
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
<S> <C> <C>
Metals and Mining-Continued
Reynolds Metals Co. ........................................ 400 $ 23
Santa Fe Pacific Gold Corp. ................................ 900 14
USX-US Steel Group, Inc. ................................... 400 13
---------
226
Miscellaneous-0.3%
American Greetings Corp. - Cl. A ........................... 400 11
Crown Cork & Seal Co., Inc. ................................ 300 16
Service Corp. International ................................ 700 20
Stone Container Corp. ...................................... 200 3
---------
50
Oils and Natural Gas Equipment and Services-0.8%
Baker Hughes, Inc. ......................................... 400 14
Dresser Industries, Inc. ................................... 400 12
Halliburton Co. ............................................ 400 24
Schlumberger Ltd. .......................................... 700 70
---------
120
Oils and Natural Gas Exploration and Production-8.8%
Amerada Hess Corp. ......................................... 400 23
Amoco Corp. ................................................ 1,400 113
Atlantic Richfield Co. ..................................... 500 66
Burlington Resources, Inc. ................................. 200 10
Chevron Corp. .............................................. 1,800 117
Coastal Corp. .............................................. 200 10
Consolidated Natural Gas Co. ............................... 300 17
Enron Corp. ................................................ 300 13
ENSERCH Corp. .............................................. 100 2
Exxon Corp. ................................................ 3,200 313
Kerr-McGee Corp. ........................................... 200 14
Mobil Corp. ................................................ 1,100 134
Occidental Petroleum Corp. ................................. 400 9
PanEnergy Corp. ............................................ 600 27
Phillips Petroleum Co. ..................................... 800 35
Royal Dutch Petroleum Co. .................................. 1,300 221
Santa Fe Energy Resources, Inc. ............................ 400 6
Sonat, Inc. ................................................ 100 5
Sun Co., Inc. .............................................. 200 5
Texaco, Inc. ............................................... 800 79
USX-Marathon Group ......................................... 800 19
Union Pacific Resources Group, Inc. ........................ 508 15
Unocal Corp. ............................................... 800 33
Williams Cos., Inc. ........................................ 150 6
---------
1,292
Paper and Forest Products-1.3%
Champion International Corp. ............................... 300 13
Georgia Pacific Corp. ...................................... 300 22
International Paper Co. .................................... 900 36
James River Corp. of Virginia .............................. 200 7
Kimberly-Clark Corp. ....................................... 800 76
Mead Corp. ................................................. 100 6
Weyerhaeuser Co. ........................................... 500 24
Willamette Industries, Inc. ................................ 100 7
Boise Cascade Corp. ........................................ 100 3
---------
194
Photography and Related Services-0.5%
Eastman Kodak Co. .......................................... 900 72
Polaroid Corp. ............................................. 100 4
---------
76
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCKS-CONTINUED
Pollution Control Equipment and Services-0.4%
<S> <C> <C>
Browning-Ferris Industries, Inc. ........................... 700 $ 18
WMX Technologies, Inc. ..................................... 1,400 46
---------
64
Printing-0.1%
R.R. Donnelley & Sons Co. .................................. 500 16
Publications-0.1%
Times Mirror Co. - Cl. A ................................... 300 15
Retail-4.4%
American Stores Co. ........................................ 500 20
Circuit City Stores, Inc. .................................. 300 9
Dayton-Hudson Corp. ........................................ 500 20
Dillard Department Stores, Inc. - Cl. A .................... 400 12
Federated Department Stores, Inc.* ......................... 700 24
Gap, Inc. .................................................. 800 24
Hasbro, Inc. ............................................... 200 8
Home Depot, Inc. ........................................... 1,300 65
Kmart Corp.* ............................................... 1,500 16
Kroger Co.* ................................................ 300 14
Limited, Inc. .............................................. 600 11
Liz Claiborne, Inc. ........................................ 100 4
Lowe's Cos., Inc. .......................................... 600 21
May Department Stores Co. .................................. 600 28
Nike, Inc. - Cl. B ......................................... 600 36
Nordstrom, Inc. ............................................ 400 14
J.C. Penney, Inc. .......................................... 700 34
Price/Costco, Inc.* ........................................ 800 20
Sears Roebuck & Co. ........................................ 1,100 51
TJX Cos., Inc. ............................................. 200 9
Toys "R" Us, Inc.* ......................................... 900 27
Wal-Mart Stores, Inc. ...................................... 5,900 135
Walgreen Co. ............................................... 500 20
Winn-Dixie Stores, Inc. .................................... 300 9
Woolworth Corp.* ........................................... 300 7
---------
638
Soap, Cosmetics and Personal Care-0.1%
International Flavors & Fragrances, Inc. ................... 300 14
Telecommunications-1.1%
Airtouch Communications, Inc.* ............................. 800 20
Andrew Corp.* .............................................. 200 11
Lucent Technologies, Inc. .................................. 1,669 77
Northern Telecom, Ltd. ..................................... 700 43
Tellabs, Inc.* ............................................. 400 15
---------
166
Transportation-1.5%
AMR Corp.* ................................................. 300 26
Burlington Northern Santa Fe ............................... 400 35
CSX Corp. .................................................. 600 25
Conrail, Inc. .............................................. 300 30
Delta Air Lines, Inc. ...................................... 200 14
Federal Express Corp. ...................................... 400 18
Norfolk Southern Corp. ..................................... 300 26
Southwest Airlines Co. ..................................... 200 4
Union Pacific Corp. ........................................ 600 36
---------
214
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCKS-CONTINUED
Utilities - Electric-2.8%
American Electric Power Co. ................................ 600 $ 25
Baltimore Gas & Electric Co. ............................... 500 13
Carolina Power & Light Co. ................................. 300 11
Central & South West Corp. ................................. 700 18
Consolidated Edison Co. of New York, Inc. .................. 800 23
Dominion Resources, Inc. ................................... 600 23
Duke Power Co. ............................................. 600 28
Entergy Corp. .............................................. 1,000 28
FPL Group, Inc. ............................................ 800 37
Niagara Mohawk Power Corp.* ................................ 400 4
Peco Energy Co. ............................................ 1,100 28
Pacific Gas & Electric Co. ................................. 1,500 32
Southern Co. ............................................... 1,700 38
Texas Utilities Co. ........................................ 700 29
Unicom Corp. ............................................... 600 16
Union Electric Co. ......................................... 300 12
CINergy Corp. .............................................. 900 30
Houston Industries, Inc. ................................... 600 14
---------
409
Utilities - Telecommunications-6.5%
AT & T Corp. ............................................... 4,200 183
Alltel Corp. ............................................... 400 13
Ameritech Corp. ............................................ 1,500 91
Bell Atlantic Corp. ........................................ 1,200 78
BellSouth Corp. ............................................ 2,600 105
GTE Corp. .................................................. 2,500 114
MCI Communications Corp. ................................... 1,700 56
NYNEX Corp. ................................................ 1,300 63
Pacific Telesis Group ...................................... 1,300 48
SBC Communications, Inc. ................................... 1,700 88
Sprint Corp. ............................................... 1,000 40
U.S. West Communications Group ............................. 1,400 45
Worldcom, Inc. ............................................. 900 23
---------
947
---------
TOTAL COMMON STOCKS- 96.7% 14,167
Par
Value
(000's)
SHORT-TERM INVESTMENTS-5.5%
Investment in joint trading account (Note B)
6.343% due 1/02/97......................................... $ 802 802
--------- ---------
TOTAL INVESTMENTS- 102.2% 14,969
Payables, less cash and receivables- (2.2)% (319)
--------- ---------
NET ASSETS- 100.0% $ 14,650
========= =========
</TABLE>
ADR-American Depository Receipt
*Non-income producing security.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
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-7.8%
KeyCorp - Sub. Notes (US)
6.75% due 3/15/06......................................... $ 500 $ 488
Midland Bank plc - Sub. Notes (US)
7.625% due 6/15/06........................................ 500 516
---------
1,004
Financial Services-9.6%
Eaglemark Credit - Asset Bkd. Ser. 96-2A (US)
6.75% due 11/15/02........................................ 409 412
First Plus Home Loan Trust - Ser. 1996-2 Cl. A3 (US)
7.15% due 3/20/09......................................... 500 507
Onyx Acceptance Grantor Trust - Ser. 1996-2 Cl. A (US)
6.40% due 10/15/01........................................ 314 315
---------
1,234
Foreign-1.7%
Comtel Brasileira, Ltd. - Notes 144A (BR) (a)
10.75% due 9/26/04........................................ 100 103
Indah Kiat International Finance - Bonds (DE)
12.50% due 6/15/06........................................ 100 110
---------
213
Foreign Governmental-29.9%
Australian Government - Bonds (AU)
6.75% due 11/15/06........................................ 550 419
Federal Republic of Germany - Bonds (DE)
7.50% due 11/11/04........................................ 310 225
6.25% due 1/04/24......................................... 310 191
Finnish Government - Bonds (FI)
7.25% due 4/18/06......................................... 1,000 233
Government of Canada - Debs. (CA)
9.00% due 6/01/25......................................... 180 164
Government of Japan - Bonds (JP)
3.00% due 9/20/05......................................... 25,000 222
Government of Spain - Bonds (ES)
10.00% due 2/28/05........................................ 20,000 185
8.80% due 4/30/06......................................... 37,000 318
Kingdom of Belgium - Debs. (BE)
7.75% due 12/22/00........................................ 5,800 205
Kingdom of Sweden - Debs. (SE)
13.00% due 6/15/01........................................ 700 132
Province of Quebec - Debs. (US)
6.50% due 1/17/06......................................... 515 497
Republic of Italy - Bonds (IT)
10.50% due 9/01/05........................................ 150,000 118
Republic of Italy - Debs. (IT)
10.50% due 4/01/00........................................ 885,000 650
U.K. Treasury - Bonds (GB)
8.00% due 6/10/03......................................... 92 163
6.75% due 11/26/04........................................ 85 140
---------
3,862
Government Agencies-22.2%
Federal National Mortgage Assoc. (US)
8.00% due 6/01/11......................................... 303 312
7.50% due 7/01/26......................................... 589 589
7.50% due 1/01/99......................................... 65 65
Government National Mortgage Assoc. (US)
8.00% due 5/15/26......................................... 493 503
7.50% due 6/15/26......................................... 485 486
7.50% due 6/15/26......................................... 328 328
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS-CONTINUED
Government Agencies-Continued
7.50% due 7/20/26......................................... $ 591 $ 589
---------
2,872
Media-0.9%
TCI Communications, Inc. - Debs. (US)
7.875% due 2/15/26........................................ 140 121
Metals and Mining-1.2%
Oregon Steel Mills, Inc. - 1st Mtge. Notes (US)
11.00% due 6/15/03........................................ 50 53
Ryderson Tull, Inc. - Notes (US)
9.125% due 7/15/06........................................ 100 105
---------
158
Miscellaneous-0.8%
Allied Waste NA - Sr. Sub. Notes 144A (US) (a)
10.25% due 12/01/06....................................... 100 105
Telecommunications-0.8%
Paging Network, Inc. - Sr. Sub. Notes 144A (US) (a)
10.00% due 10/15/08....................................... 100 101
U.S. Governmental-5.0%
U.S. Treasury - Bonds (US)
10.375% due 11/15/12...................................... 300 386
U.S. Treasury - Notes (US)
6.875% due 5/15/06........................................ 50 52
7.00% due 7/15/06......................................... 200 208
---------
646
Utilities - Electric-7.1%
National Rural Utilities - Bonds (US)
7.30% due 9/15/06......................................... $ 500 $ 512
Niagara Mohawk Power Corp. - 1st Mtge. Bonds (US)
7.375% due 8/01/03........................................ 100 94
Southern California Edison Co. - 1st Ref. Mtge. Bonds (US)
7.125% due 7/15/25........................................ 325 307
---------
913
Utilities - Telecommunications-0.9%
Philippine Long Distance Telephone - Debs. (US)
10.625% due 6/02/04....................................... 100 114
---------
TOTAL PUBLICLY-TRADED BONDS- 87.9% 11,343
SHORT-TERM INVESTMENTS-9.9%
Investment in joint trading account (Note B)
6.343% due 1/02/97........................................ 1,282 1,282
---------- ---------
TOTAL INVESTMENTS- 97.8% 12,625
Cash and receivables, less payables- 2.2% 282
---------- ---------
NET ASSETS- 100.0% $ 12,907
========== =========
</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 December 31, 1996, these securities
aggregated $309 or 2.4% of the net assets of the Portfolio.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
<TABLE>
<CAPTION>
Market
Country Value
Country Abbreviation (000's)
<S> <C> <C>
UNITED STATES....................................... US $ 7,875
ITALY............................................... IT 768
SPAIN............................................... ES 503
AUSTRALIA........................................... AU 419
GERMANY............................................. DE 416
UNITED KINGDOM...................................... GB 303
JAPAN............................................... JP 222
FINLAND............................................. FI 233
BELGIUM............................................. BE 205
CANADA.............................................. CA 164
SWEDEN.............................................. SE 132
BRAZIL.............................................. BR 103
--------
$11,343
========
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(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 Equities, 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 Life Insurance Account UV ("JHMVLAUV") to fund contracts and
policies issued by John Hancock Mutual 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 and other such securities 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
112
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
such exchanges as of the close of business on the date of which assets are
valued. Securities traded in the 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, Special Opportunities, Growth & Income, Managed, International
Opportunities, Equity Index and Strategic Bond Portfolios are shown net of
foreign taxes withheld of $38, $303, $43, $1, $2, $7, $235, $146, $23, $1, and
$8, 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. These government
securities have an aggregate market value of $160,321, with maturity dates
ranging from June 30, 1998, through November 15, 2018. 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.
113
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Joint Trading Account: Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Portfolios of the Trust may pool daily
uninvested cash balances 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 December 31, 1996:
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
-------------- -------- --------
<S> <C> <C>
BP America, Inc.
7.15% due 01/02/97.......................................... $ 40,000 $ 39,992
Ford Motor Credit Corp.
5.92% due 01/02/97.......................................... 22,000 21,996
Fuji Bank, Ltd.
6.22% due 01/02/97.......................................... 25,000 25,026
Prudential Funding Corp.
5.90% due 01/02/97.......................................... 14,827 14,825
UBS Finance Delaware, Inc.
6.20% due 01/02/97.......................................... 11,000 10,998
Dean Witter Discover and Co.
6.00% due 01/03/97.......................................... 30,000 29,990
Sony Capital Corp.
6.40% due 01/03/97.......................................... 16,221 16,215
American Express Credit Corp.
5.80% due 01/07/97.......................................... 28,019 27,992
Merrill Lynch and Company, Inc.
6.00% due 01/07/97.......................................... 11,000 10,989
-------- --------
Joint Account Totals........................................ $198,067 $198,023
======== ========
</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 and International Balanced 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 Portfolio 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 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 December 31, 1996, the
International Balanced Portfolio had a payable for futures variation margin of
$20. There were no other open positions in financial futures contracts at
December 31, 1996.
Forward Foreign Currency Contracts: A Portfolio 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 change
the Portfolio's exposure to foreign currencies, while contracts to sell are
used to hedge the Portfolio's investments against currency fluctuations.
Neither type of foreign currency
114
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
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. Realized gains
(losses) on the purchases and sales of forward foreign currency contracts are
recognized on settlement date.
Currency Translation: For the International Balanced, Mid Cap Growth and
Strategic Bond 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 Portfolio. 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
include 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.
Federal Income Taxes: Each of the Portfolios of the Fund intends to comply
with the requirements of Subchapter M 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 had $923 which expires in 2004, Mid Cap Growth had $315
which expires in 2004, and International Opportunities had $7 which expires 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 13, 1996 and April 9, 1996, the Fund renewed its Investment
Advisory Agreement with John Hancock. For its services, John Hancock receives
monthly compensation at the following rates:
For the Growth & Income, Sovereign Bond, Money Market and Equity Index
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.
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES--
Continued
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, 0.50% on an annual basis of
the first $250,000 of the Portfolio's net assets; 0.45% for net assets between
$250,000 and $500,000; and 0.40% for net assets in excess of $500,000.
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; 0.75% for net assets between $500,000 and $750,000, and 0.725%
for net assets in excess of $750,000;
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.
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 has entered into Sub-Advisory Agreements with Independence
Investment Associates with respect to the Large Cap Growth, Managed, Real
Estate Equity, Short-Term U.S. Government, and Equity Index 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.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES--
Continued
Morgan Investment Management Inc., with respect to the Strategic Bond
Portfolio, and with Brinson Partners, Inc., with respect to the International
Balanced 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.
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 year ended December 31, 1996, the reimbursement paid from
John Hancock and JHVLICO was $51 to Small Cap Growth, $50 to International
Balanced, $63 to Mid Cap Growth, $65 to Large Cap Value, $55 to Mid Cap Value,
$10 to Short-Term U.S. Government, $56 to Small Cap Value, $145 to
International Opportunities, $102 to Equity Index, and $50 to Strategic Bond
Portfolios.
During the period ended December 31, 1996, the Investment Adviser
voluntarily contributed approximately $84 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 voluntarily reimbursed and/or waived all investment advisory
and other fund expenses of the Equity Index Portfolio for the period ended
December 31, 1996. The Investment Adviser expects to voluntarily 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.
NOTE D--INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments excluding
short-term securities for each Portfolio for the year ended December 31, 1996
were as follows:
<TABLE>
<CAPTION>
Sales and
Purchases Maturities
---------- ----------
<S> <C> <C>
Large Cap Growth......................................... $ 688,337 $ 586,568
Sovereign Bond........................................... 796,492 781,872
International Equities................................... 136,080 123,025
Small Cap Growth......................................... 23,841 6,217
International Balanced................................... 26,059 4,659
Mid Cap Growth........................................... 20,349 5,375
Large Cap Value.......................................... 18,627 2,111
Money Market............................................. None None
Mid Cap Value............................................ 12,200 4,344
Special Opportunities.................................... 333,391 233,995
Real Estate Equity....................................... 31,542 21,379
Growth & Income.......................................... 1,658,704 1,391,378
Managed.................................................. 2,592,719 2,461,716
Short-Term U.S. Government............................... 45,893 5,913
Small Cap Value.......................................... 13,447 5,048
International Opportunities.............................. 15,968 760
Equity Index............................................. 14,389 1,534
Strategic Bond........................................... 31,028 20,137
</TABLE>
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(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 and depreciation at December 31, 1996
for federal income tax purpose are as follows:
<TABLE>
<CAPTION>
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Large Cap Growth........... $ 462,397 $ 62,803 $(12,979) $49,824
Sovereign Bond............. 775,947 16,618 (6,706) 9,912
International Equities..... 137,038 23,168 (4,204) 18,964
Small Cap Growth........... 20,014 1,739 (927) 812
International Balanced..... 22,345 1,673 (775) 898
Mid Cap Growth............. 16,742 1,134 (524) 610
Large Cap Value............ 19,050 1,335 (141) 1,194
Money Market............... 212,300 None None None
Mid Cap Value.............. 9,833 1,126 (103) 1,023
Special Opportunities...... 170,544 30,262 (2,041) 28,221
Real Estate Equity......... 118,876 32,377 (960) 31,417
Growth & Income............ 1,685,482 380,776 (22,811) 357,965
Managed.................... 2,271,002 174,944 (24,176) 150,768
Short-Term U.S. Government. 58,063 101 (468) (367)
Small Cap Value............ 9,777 1,016 (316) 700
International
Opportunities............. 16,590 1,812 (784) 1,028
Equity Index............... 13,805 1,385 (201) 1,184
Strategic Bond............. 12,512 276 (11) 265
</TABLE>
NOTE E--RECLASSIFICATION OF CAPITAL ACCOUNTS
During the period ended December 31, 1996, reclassifications have been made
in each Portfolio's capital accounts to report these balances on a tax basis,
excluding certain temporary differences, as of December 31, 1996. These
permanent reclassifications are primarily attributable to differences in the
treatment of foreign currency gains and losses under federal tax rules versus
generally accepted accounting principles. Net assets were not affected by
these reclassifications.
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1996
- -------------------------------------------------------------------------------
(000's Omitted)
NOTE F--FORWARD FOREIGN CURRENCY CONTRACTS
As of December 31, 1996 the International Balanced and Strategic Bond
Portfolios had open forward foreign currency contracts which contractually
obligate the Portfolio to deliver or receive currencies at a specified date,
as follows:
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
------------------------------------------ ------ ------ --------------
<S> <C> <C> <C> <C> <C>
Belgian Franc $ 10,000,000 5/02/97 $ 324 $ 318 $ 6
Canadian Dollar 960,000 5/02/97 723 706 17
Canadian Dollar 200,000 5/02/97 147 147 --
Swiss Francs 320,000 5/02/97 259 242 17
Deutsch Mark 2,700,000 5/02/97 1,803 1,769 34
Deutsch Mark 500,000 5/02/97 324 328 (4)
Danish Krone 4,200,000 5/02/97 729 718 11
French Franc 9,800,000 5/02/97 1,936 1,903 33
French Franc 1,200,000 5/02/97 230 232 (2)
Pound Sterling 100,000 5/02/97 162 171 (9)
Italian Lira 500,000,000 5/02/97 327 328 (1)
Netherlands Guilder 3,400,000 5/02/97 2,028 1,985 43
Netherlands Guilder 450,000 5/02/97 260 262 (2)
<CAPTION>
Currency Purchased
----------------------------------
<S> <C> <C> <C> <C> <C>
Canadian Dollar 150,000 5/02/97 113 110 (3)
Japanese Yen 260,000,000 5/02/97 2,343 2,284 (59)
---
$81
===
</TABLE>
STRATEGIC BOND PORTFOLIO
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
----------------------------------- -------- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
Australian Dollar $ 190,000 1/10/97 $155 $151 $ 4
Australian Dollar 340,000 1/30/97 270 270 --
Belgian Franc 6,600,000 1/24/97 208 208 --
Canadian Dollar 223,000 1/17/97 165 163 2
Deutsch Mark 313,000 1/17/97 208 204 4
Deutsch Mark 350,000 1/17/97 226 228 (2)
Spanish Peseta 69,000,000 1/17/97 530 531 (1)
Finnish Markka 1,200,000 1/30/97 260 261 (1)
Pound Sterling 179,000 1/24/97 296 306 (10)
Italian Lira 1,200,000,000 1/10/97 789 791 (2)
Japanese Yen 26,500,000 1/31/97 233 230 3
Swedish Krone 950,000 1/24/97 140 139 1
----
$ (2)
====
</TABLE>
119
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- -------------------------------------------------------------------------------
To The Contractowners, Policyholders and Trustees of
John Hancock Variable Series Trust I
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of John Hancock Variable Series Trust
I (the "Trust") (comprising, respectively, the Large Cap Growth, Sovereign
Bond, International Equities, 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 Portfolios) as of December 31, 1996, and the related statements
of operations, statements of changes in net assets and financial highlights
for the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1996, by correspondence
with the custodians and brokers, or other appropriate auditing procedures
where replies from brokers were not received. An audit also includes assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting John Hancock Variable Series
Trust I at December 31, 1996, the results of their operations and the changes
in their net assets and financial highlights for each of the periods indicated
therein, in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 7, 1997
120
<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. John Hancock Advisers, Inc.
One Liberty Square 101 Huntington Avenue
Boston, Massachusetts 02109 Boston, Massachusetts 02199
T. Rowe Price Associates, Inc. J.P. Morgan Investment Management
100 East Pratt Street 522 Fifth Avenue
Baltimore, MD 21202 New York, NY 10036
Rowe Price-Fleming International, Inc. Brinson Partners, Inc.
100 East Pratt Street 209 South La Salle Street
Baltimore, MD 21202 Chicago, IL 60604-1295
Neubuerger & Berman, LLC. Janus Capital Corporation
605 Third Avenue 100 Fillmore Street
New York, NY 10158-3698 Denver, CO 80206-4923
INVESCO Management & Research, Inc.
101 Federal Street
Boston, MA 02110
INDEPENDENT AUDITORS
Ernst & Young, LLP
200 Clarendon Street
Boston, MA 02116
<PAGE>
JOHN HANCOCK MUTUAL
LIFE INSURANCE COMPANY
AND AFFILIATED COMPANIES
BOSTON, MASSACHUSETTS
02117
[LOGO OF JOHN HANCOCK
WORLDWIDE
OLYMPIC SPONSOR
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.
