<PAGE>
June 30, 1998
Making the most of your time.
SEMIANNUAL REPORT
Insurance for the unexpected.
Investments for the opportunities.(R)
[John Hancock signature logo appears here]
[John Hancock Advisers logo appears here]
[Independence Investment Associates, Inc. logo appears here]
[Brinson Partners, Inc. logo appears here]
[Goldman Sachs logo appears here]
[Invesco logo appears here]
[JP Morgan logo appears here]
[Janus logo appears here]
[Mellon Bond Manage Risk logo appears here]
[Montgomery Asset Management logo appears here]
[Neuberger & Berman LLC logo appears here]
[Scudder logo appears here]
[State Street Global Advisors logo appears here]
[T. Rowe Price logo appears here]
[Wellington Management logo appears here]
Variable Series Trust
[John Hancock signature logo appears here]
<PAGE>
[Photo of Thomas J. Lee, President and Vice Chairman, appears here]
Dear John Hancock Contract Owner,
One of the most important investment decisions that we can make has nothing to
do with an investment product, asset class, or securities market.
It has to do with time.
You are probably familiar with the concept called "cost of waiting." Some people
pay a stiff financial price when they fail to make decisions because they are
uncertain of the best course of action. It is important to spend the time to
fully understand your insurance and investment needs. For many customers, this
involves consulting with a John Hancock Registered Representative who can help
clarify the tradeoff between current spending and preparation for the future.
Balance risk and return. Turn ideas into action. And, finally, select the right
variable life or variable annuity product and the best choice of funds within
that product.
Unfortunately, many of us are stretched for time because of work pressures,
family obligations, community involvement ... or all of the above. That's why
John Hancock is taking exciting steps to become even more accessible to you.
When you want or need to contact John Hancock for information or service, there
are several avenues available to you. Of course, many of you are most
comfortable dealing directly with your John Hancock representative. In addition,
telephone access to our central office is available by calling 800-Real Life
(800-732-5543). Service representatives are available Monday through Friday from
8:00 am to 8:00 pm Eastern Standard Time. Automated telephone service
transactions are available around the clock, 365 days a year. We also invite you
to surf the net by contacting John Hancock via our award-winning Internet site
at www.jhancock.com.
We want to assure you that we recognize how important your time is, and we
are committed to helping you make the most of it. And, although the investment
climate is ever changing, one thing remains constant: John Hancock's commitment
to delivering value through quality products and responsive service. Don't
hesitate to contact us. We are here to serve your needs.
[Photo of Henry D. Shaw, Chairman, appears here]
Sincerely,
/s/ Henry D. Shaw /s/ Thomas J. Lee
Henry D. Shaw Thomas J. Lee
Chairman President and Vice Chairman
<PAGE>
- --------------------------------------------------------------------------------
ECONOMIC OVERVIEW: MID-YEAR REVIEW 1998
JOHN HANCOCK ECONOMIC RESEARCH
- --------------------------------------------------------------------------------
The economy's performance in the first half of 1998 was characterized by strong
domestic demand and a burgeoning trade deficit which increasingly weighed down
overall growth. Events overseas buoyed domestic demand, by keeping inflation in
check and helping lower long term interest rates, but undermined the
manufacturing sector which languished under the high dollar and sharply
diminished Asian demand.
The economy continued to create jobs faster than the labor force grew, leading
to the unemployment rate sliding to a 30 year low of 4.3% before rising
slightly in June. Service sector employment growth soared, while manufacturing
jobs contracted as the half wore on. Wire taut labor markets appeared to have
little impact on inflation, as productivity growth remained healthy.
The Asian crisis reached our shores in early 1998 as export growth declined
sharply, followed by a rising tide of imports. The trade deficit soared to
record levels, reducing economic growth by as much as 3%. Manufacturers
sustained decreased export orders, increased competition, and loss of pricing
power. However, the worst may be over, as Asia gradually recovers and the
dollar stops rising.
While producers suffered, consumption spending surged as consumers saw a
substantial improvement in their purchasing power. Strong income growth and
record low inflation, coupled with declining interest rates and strong stock
prices, underpinned consumption growth of around 5% in the first half.
Business fixed investment rebounded smartly from its anemic performance at the
end of 1997 and recorded double digit growth despite the drag from the export
sector. Growth in industrial capacity continued to keep pace with utilization
rates, limiting the potential for industrial bottlenecks.
The housing market also surged as it shrugged off its early 90s hangover,
supported by strong income growth, declining mortgage rates, and high consumer
confidence. Prices also began to show signs of life, but with much more
restraint. So far, speculative activity has been limited, but conditions appear
ripe for potential problems further down the road.
Despite robust economic growth, inflation remained virtually invisible with
consumer prices rising only 1.4% and producer prices falling 1.5% in the first
half, in large part because of the positive but transitory effect of the Asian
crisis and the strong dollar on goods prices. However, more recently faint
signs of emerging inflation could be discerned as core consumer prices,
excluding energy and food, jumped 2.5% while prices for services and wages
began to exhibit some upward momentum.
The bond markets improved with declining inflation expectations, foreign
capital inflows, and an emerging government budget surplus. The yield curve
flattened as long term rates fell around 25 basis points and short term rates
remained steady. The Fed left short term rates unchanged, as real rates rose
and the Fed expected the Asian crisis to damp output growth. Nevertheless, the
Fed became increasingly concerned about the potential for an uptick in
inflation which would require a policy response.
The stock market reached new records in the first quarter, only to stabilize as
earnings worries emerged. Declining long term interest rates and stable Fed
policy kept a floor under stock prices. However, continued weak corporate
profits could jeopardize the market later this year. The stock market has
played an integral role supporting the economy and a sizable market correction
could have an outsized affect on future consumption and investment spending at
this stage in the business cycle.
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
JOHN HANCOCK MUTUAL LIFE INSURANCE CO. PETER MITSOPOULOS
- --------------------------------------------------------------------------------
The first half of 1998 was marked by a relatively benign short-term interest
rate environment as the Fed left rates unchanged again at its two-day meeting
just ended July 1, 1998. With the Fed Funds target rate still at 5.50%, it now
marks 15 months since the Fed's last change in March, 1997. The long-term bond
market, however, edged higher pushing yields well below 6.0% on the 30-year
Treasury Bond, while the two-year Treasury Note's yield was often at or below
the Fed Funds rate. Fundamentally, the economy continues to perform extremely
well with solid GDP growth and low inflation. The fears of a monetary policy
tightening have not come to fruition, but many still fear its arrival.
However, we believe it can be argued that monetary policy is essentially tight
as the real Fed Funds rate (Fed Funds minus inflation) is around 4%, a level
not seen since just prior to the 1990-91 recession.
Our investment strategy as the year rolled in was slightly conservative based
on last year's high state of inflationary caution. For the first two months of
the year the portfolio's average maturity ranged between 45 days and 50 days.
This was also partly the result of a tactical decision to shorten maturities
at year-end to pick up some of the high yields traditionally offered during
this time. But by March, based on readings of various economic statistics such
as the Producer Price Index, productivity measures and the Asian situation, we
felt that a Fed tightening was not imminent and began to extend investment
maturities. By the end of April, the portfolio's average maturity reached a
high of 74 days and ended this semi-annual period at 68 days. At this level,
we feel the Portfolio is well positioned on the maturity curve to react to any
change in interest rates.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Date Money Market Portfolio
- --------------------------------------------------------------------------------
6/1/88 10,000
10,058
10,128
10,194
10,262
10,330
10,406
1/1/89 10,484
10,556
10,638
10,716
10,809
10,891
10,975
11,055
11,130
11,214
11,291
11,372
1/1/90 11,450
11,521
11,597
11,677
11,757
11,831
11,914
11,992
12,064
12,150
12,228
12,310
1/1/91 12,388
12,452
12,513
12,582
12,644
12,698
12,764
12,823
12,882
12,938
12,985
13,043
1/1/92 13,089
13,127
13,171
13,214
13,254
13,299
13,341
13,381
13,418
13,442
13,479
13,517
1/1/93 13,552
13,584
13,621
13,655
13,685
13,722
13,756
13,792
13,826
13,858
13,894
13,930
1/1/94 13,967
13,999
14,036
14,072
14,115
14,162
14,208
14,264
14,318
14,369
14,426
14,492
1/1/95 14,561
14,624
14,696
14,761
14,838
14,907
14,978
15,049
15,114
15,187
15,256
15,329
1/1/96 15,400
15,464
15,526
15,594
15,662
15,723
15,797
15,864
15,934
16,004
16,065
16,145
1/1/97 16,216
16,280
16,352
16,423
16,495
16,567
16,643
16,713
16,787
16,861
16,936
17,014
1/1/98 17,093
17,163
17,241
17,317
17,393
6/1/98 17,469
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Royal Bank of Canada 3.8% N/A
BT Bank of Canada 3.7% N/A
Citibank Cd 3.7% N/A
Pemex Capital, Inc. 3.6% N/A
Prudential Funding Corp. 3.6% N/A
Formosa Plastics Corp. 3.4% N/A
Goldman Sachs Group 2.6% N/A
Sears, Roebuck Acceptance Corp. 2.6% 5.0%
American Petrofina Holding Co. 2.2% N/A
National Bank of Canada 1.9% 4.3%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Money Market MorningStar
Portfolio Peer Group+
------------ -----------
Y-T-D 2.68% N/A
1 Year 5.45 5.35
5 Years 4.95 4.81
10 Years 5.74 5.56
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of investments
Financial Services 47.7% 62.0%
Brokerage and Investment Management 16.2% N/A
Banks 14.1% 10.3%
Personal and Commercial Lending 5.6% N/A
Retail - Department Stores 4.0% 5.0%
- --------------------------------------------------------------------------------
The 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 net asset value of $10.00/share.
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
2
<PAGE>
INCEPTION: MAY 1, 1994
- ------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO (FORMERLY SHORT-TERM U.S. GOVT.) INDEPENDENCE
INVESTMENT ASSOCIATES, INC. TOM SPICER
- ------------------------------------------------------------------------------
Before discussing the performance of the Portfolio for the first half of
1998, we must first talk about the recent changes that have taken place.
Besides having a slightly shorter duration, the majority of the Portfolio will
be invested in short corporate bonds with an average quality of single-A
rather than agency issues. This Portfolio will have a higher yield and over
time should produce superior returns over the previous structure. This change
also helps to more clearly differentiate the fund from money market
investments with its relatively higher risk threshold.
The timing of this re-balancing has proven to be very beneficial. The low
level of interest rates we are currently experiencing has led to substantial
new debt issuance by corporations. The increase in supply, a resurgence of the
economic problems in Asia as well as concerns over second quarter corporate
profits forced investors to demand greater yield premiums. What this meant for
the Portfolio was that it was able to invest in corporate bonds at a
relatively cheaper price. After this technical impact has subsided, the
positions will likely benefit as corporate spreads return to previous levels.
During this period of transition, in which the Portfolio experienced
relatively high turnover, I am pleased to report the fund performed in line
with its benchmark. In addition to the higher yield contributing to out-
performance, investment opportunities within the corporate sector will
continuously be sought out, identified and purchased as a means of generating
returns. I look forward to sharing with you the Portfolio's results in the
coming months under these new marching orders.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Merrill Lynch
Date Short-Term Bond Portfolio 1-5 U.S. Govt. Bond Index
- --------------------------------------------------------------------------------
4/1/94 10,000 10,000
9,999 10,013
10,010 10,033
10,109 10,138
10,130 10,172
10,075 10,117
10,078 10,129
10,032 10,074
10,033 10,102
1/1/95 10,172 10,258
10,324 10,432
10,367 10,489
10,462 10,597
10,694 10,844
10,769 10,908
10,780 10,935
10,844 11,010
10,892 11,071
10,996 11,179
11,098 11,299
11,187 11,398
1/1/96 11,273 11,501
11,183 11,418
11,143 11,383
11,124 11,371
11,123 11,378
11,211 11,474
11,238 11,514
11,260 11,542
11,392 11,666
11,527 11,824
11,607 11,937
11,591 11,907
1/1/97 11,642 11,961
11,661 11,980
11,631 11,951
11,727 12,065
11,805 12,152
11,894 12,245
12,058 12,422
12,033 12,406
12,138 12,520
12,241 12,634
12,247 12,660
12,334 12,755
1/1/98 12,464 12,903
12,460 12,901
12,503 12,950
12,559 13,010
12,622 13,086
6/1/98 12,679 13,162
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Woolworth Corp. 5.7% N/A
WMX Technologies, Inc. 4.7% N/A
Paramount Communications, Inc. 4.7% N/A
Camden Property Trust 4.4% N/A
Federal Express Corp. 4.4% N/A
Capital One Bank 4.2% N/A
Service Corp. International 4.1% N/A
Occidental Petroleum Corp. 4.1% N/A
Franchise Finance Corp. of America 3.9% N/A
Mitchell Energy & Development 3.7% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Short-Term Merrill Lynch 1-5 MorningStar
Bond Portfolio U.S. Govt. Bond Index Peer Group+
-------------- --------------------- -----------
Y-T-D 2.80% 3.19% N/A
1 Year 6.60 7.49 7.07%
3 Year 5.59 6.46 6.19
Since Inception 5.86 6.82 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio Composition (as of June 30, 1998)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
Treasury/Agency 6.0% less than 2 Years 50.0%
AAA 0.0% 2-4 Years 45.0%
AA 1.0% 4-6 Years 5.0%
A 1.0% greater than 6 Years 0.0%
BBB 71.0%
BB 18.0%
Cash 3.0%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
3
<PAGE>
INCEPTION: MAY 1, 1998
- --------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
MELLON BOND ASSOCIATES GREGORY CURRAN
- --------------------------------------------------------------------------------
In its first two months, the Portfolio has met its investment objective: to
match the performance of a broad benchmark for the investment grade, fixed
income market. Currently, the fund is structured to match the performance of
the Lehman Brothers Government Corporate Index. As assets grow, it is expected
that the fund will be re-configured to replicate the performance of the Lehman
Brothers Aggregate Bond Index which includes the Government Corporate Index as
well as Mortgage-Backed and Asset-Backed securities. Both indices exclude high
yield, emerging market, convertible, floating rate and non-U.S. dollar issues.
Unlike equity index funds, which purchase each issue in the index in
proportion to its weight in the index, it is impractical to purchase all of
the issues in fixed income indices. This fund's portfolio structure results
from proprietary quantitative techniques which select a representative sample
of issues across more than sixty sectors. Selected issues have the best risk-
adjusted expected return and, as a group, match the characteristics of the
6,500 issues in the Index including duration, maturity, industry, and quality
exposures. An indexed portfolio typically matches market performance,
eliminates many risks associated with active management, and has lower fees
and expenses.
During the first half of 1998, Asia's financial upheaval overshadowed U.S.
economic conditions. Understandably, the sectors with the least exposure to
Asia performed best. The U.S. economy was strong, with productivity and
employment up and inflation and inflation fears down. High interest rates
relative to other industrialized countries, a strong dollar and the flight to
quality sparked by Asia's problems lured and kept investors. The flight to
quality led corporate quality sector returns to vary widely. Triple-A rated
issues virtually matched U.S. Treasury issue performance, yet triple-B rated
issues underperformed Treasuries by 0.76%. Concerns about corporate profits
led to wider corporate spreads, particularly at times of uncertainty in the
stock market. The current environment is expected to continue for the
immediate foreseeable future.
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
US Treasury 55.6% N/A
Federal Home Loan Mortgage Corp. 7.6% N/A
Federal National Mortgage Assoc. 4.3% N/A
General Motors Acceptance 1.6% N/A
KFW International Finance 1.4% N/A
ICI Wilmington 1.3% N/A
Rite Aid Corp. 1.3% N/A
GTE South, Inc. 1.1% N/A
Interamerican Development Bank 1.0% N/A
First Union Corp. 1.0% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Bond Index L/B Govt./Corp.
Portfolio Bond Index
---------- ---------------
Since Inception 2.11% 2.10%
(5/1/98)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio Composition (as of June 30, 1998)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
Treasury/Agency 64.4% less than 2 Years 22.2%
AAA 3.4% 2-4 Years 30.0%
AA 3.6% 4-7 Years 24.8%
A 14.0% greater than 7 Years 23.1%
BBB 9.8%
Cash 4.8%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
4
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
JOHN HANCOCK ADVISERS, INC. JAMES HO
- --------------------------------------------------------------------------------
. For the six months ended June 30, 1998, the Portfolio returned 4.26% versus
4.17% for the Lehman Brothers Government/Corporate Bond Index. Though
performance results were favorable, the environment was more difficult for
yield driven strategies, such as ours, than for duration driven strategies.
The bond market continued to be troubled by high levels of volatility and
uncertainty which characterized the world markets after the Asian financial
crisis began. Within this environment, several key factors shaped performance
results. Since year-end, interest rates declined by 30 basis points in the 10-
30 year maturity range, while yields in the shorter end of the yield curve
declined less. This resulted in a flatter overall yield curve and
significantly better performance results for the longer duration issues.
A series of negative headlines from around the world impacted the market,
including the collapse of Indonesia's Suharto regime, India's nuclear weapons
test, Russia's financial markets' illiquidity and the deteriorating Japanese
economic fundamentals. While these events primarily impacted the emerging
market sector, negative sentiment began to spill over into the domestic high
yield sectors. Investors again looked to the US Treasury market as a safe
haven, as US economic strength, a strong currency and high relative interest
rates made Treasuries attractive. This, in addition to the record new issue
supply of both the high yield and emerging market sectors, caused corporate
spreads to widen rather dramatically versus Treasuries.
The Portfolio reduced its exposure to the high yield sector, and maintained a
relatively light exposure to emerging markets, primarily in Latin American
credits, where selective country fundamentals remain attractive. The Portfolio
increased its number of holdings, adding further diversification and shifted
its heavy corporate emphasis to reflect a more defensive credit bias.
We continue to monitor those market sectors that have undergone significant
spread widening and dislocations in order to exploit opportunities. While our
goal is to provide a superior total rate of return, we are committed to
safeguarding assets and minimizing risk.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Date Sovereign Bond Portfolio Lehman Brothers Govt.
/Corp. Bond Index
- --------------------------------------------------------------------------------
6/30/88 10,000 10,000
9,981 9,943
10,000 9,969
10,207 10,187
10,369 10,367
10,286 10,250
10,330 10,285
1/1/89 10,472 10,422
10,386 10,343
10,419 10,399
10,617 10,619
10,871 10,880
11,163 11,235
11,366 11,469
11,238 11,291
11,291 11,341
11,538 11,628
11,637 11,732
11,614 11,750
1/1/90 11,470 11,589
11,500 11,614
11,512 11,615
11,449 11,509
11,693 11,842
11,851 12,034
11,972 12,183
11,862 12,007
11,937 12,106
12,086 12,267
12,295 12,535
12,474 12,724
1/1/91 12,575 12,867
12,729 12,977
12,846 13,067
13,034 13,217
13,131 13,279
13,141 13,265
13,282 13,432
13,583 13,741
13,859 14,028
13,995 14,153
14,112 14,294
14,552 14,776
1/1/92 14,411 14,557
14,449 14,634
14,413 14,554
14,506 14,641
14,748 14,925
14,940 15,145
15,300 15,532
15,466 15,671
15,674 15,884
15,483 15,641
15,435 15,627
15,667 15,895
1/1/93 15,946 16,242
16,278 16,580
16,368 16,636
16,470 16,764
16,462 16,756
16,799 17,136
16,941 17,246
17,299 17,643
17,385 17,704
17,403 17,777
17,273 17,576
17,353 17,653
1/1/94 17,606 17,918
17,284 17,528
16,917 17,098
16,765 16,956
16,737 16,926
16,720 16,887
16,991 17,224
17,032 17,231
16,834 16,971
16,806 16,953
16,775 16,922
16,907 17,034
1/1/95 17,230 17,361
17,642 17,764
17,780 17,883
18,037 18,131
18,812 18,891
18,974 19,042
18,893 18,968
19,111 19,210
19,302 19,406
19,617 19,692
19,910 20,017
20,213 20,311
1/1/96 20,332 20,437
19,941 20,003
19,819 19,835
19,719 19,699
19,714 19,665
19,914 19,929
19,978 19,974
19,993 19,926
20,354 20,281
20,787 20,754
21,113 21,136
21,042 20,901
1/1/97 21,120 20,926
21,220 20,970
20,996 20,720
21,282 21,023
21,522 21,219
21,804 21,473
22,458 22,130
22,237 21,882
22,597 22,226
22,793 22,582
22,918 22,701
23,169 22,940
1/1/98 23,486 23,263
23,467 23,216
23,599 23,288
23,715 23,405
23,926 23,655
6/30/98 24,155 23,897
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury-Notes/Bonds 23.2% 23.5%
Government National Mortgage Assoc. 3.2% 4.7%
Federal National Mortgage Assoc.-Ser, 199 2.6% 1.8%
Federal Home Loan Mortgage Corp. 1.9% 2.0%
UCFC Home Equity Loan-Ser. 1996-A1 A5 1.8% 1.9%
American Express Credit Corp.+Debs. 1.6% 1.7%
Commercial Credit Group, Inc.-Notes 1.5% 1.6%
Texaco Capital, Inc.+Debs. 1.5% 1.6%
Hydro-Quebec-Debs. Ser. IF 1.4% 1.8%
GMAC Commercial Mortgage Securities, Inc. 1.4% 0.9%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Sovereign Bond Lehman Brothers Govt./ MorningStar
Portfolio Corp. Bond Index Peer Group+
-------------- ---------------------- -----------
Y-T-D 4.26% 4.17% N/A
1 Year 10.79 11.29 9.82%
5 Years 7.53 6.88 6.81
10 Years 9.22 9.10 8.92
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio Composition (as of June 30, 1998)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
Treasury/Agency 30.1% less than 1 Year 6.3%
AAA 14.2% 1-3 Years 19.5%
AA 7.9% 3-4 Years 11.8%
A 17.0% 4-6 Years 25.8%
Baa 10.3% 6-8 Years 14.2%
Below Invest Grade (NR) 20.5% 8+ Years 22.4%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998, returns represent past
performance, assume reinvestment of all distributions, and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
5
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
J.P. MORGAN INVESTMENT MANAGEMENT, INC. CHRIS DURBIN & LILI DUNG
- --------------------------------------------------------------------------------
The Portfolio provided a total return of 3.98% (net of fees) for the period
January 1, 1998--June 30, 1998. In addition, the Portfolio returned 9.20%
since its May 1, 1996 inception.
During the first half of 1998, the U.S. fixed income markets continued to be
impacted by economic instability in Asia and Russia, against a backdrop of the
relative strength and stability of the U.S. economy. Within the domestic
portion of the Portfolio, our strategic overweighting of corporates, mortgages
and asset backed securities relative to U.S. Treasuries benefited performance
in the beginning of the year but detracted from performance in the second
quarter. Renewed fears about the crisis in Russia and Asia triggered a "flight
to quality' and a sharp rally in U.S. Treasuries in the second quarter.
We decreased our combined allocation to domestic high yield and emerging
markets as we became more cautious about these markets. The Portfolio is
invested in Venezuela, Brazil, Poland and Mexico as well as Asian credits
including Philippine and Korean securities. All holdings in these countries
are U.S. dollar denominated.
Within the foreign portion of the Portfolio, our underweight position in
Australia enhanced performance while our overweight position in Canada
detracted from performance. In addition, our overweight non-dollar position
boosted performance, particularly the UK as this market performed well during
the quarter. Within Japan, we were slightly overweight which enhanced
performance as the JGB yields and the yen continued to move lower from the
market's reaction to the government's fiscal reflationary package.
Looking ahead, given the depth and persistence of the Asian crisis, we expect
to have a bias toward maintaining a long duration position to benefit from
international capital flows into the U.S. market. In Japan, we have little
confidence that the planned fiscal package can do more that give a temporary
boost to the economy in the absence of financial restructuring.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Date Strategic Bond Composite Index(A) Strategic Bond Portfolio
- --------------------------------------------------------------------------------
4/30/96 10,000 10,000
10,002 9,983
10,123 10,068
10,162 10,103
10,183 10,112
10,370 10,297
10,586 10,490
10,775 10,674
10,703 10,671
1/1/97 10,762 10,723
10,799 10,755
10,695 10,634
10,844 10,761
10,936 10,871
11,080 11,021
11,348 11,262
11,279 11,194
11,454 11,396
11,597 11,459
11,658 11,518
11,784 11,637
1/1/98 11,937 11,774
11,956 11,795
12,013 11,844
12,076 11,899
12,203 12,012
6/30/98 12,294 12,101
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Government of France 12.4% N/A
Federal Republic of Germany 12.0% N/A
U.S. Treasury 11.5% 20.8%
Morgan Stanley Capital, Inc. 4.7% 3.8%
Cable & Wireless Communication 3.6% N/A
Cytec Industries, Inc. 3.5% N/A
Countrywide Home Loans 3.5% 2.3%
Computer Associates International, Inc. 3.5% N/A
McKesson Corp. 3.5% N/A
Government National Mortgage Assoc. 3.4% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Strategic Bond Strategic Bond Morning Star
Portfolio Composite Index(A) Peer Group+
-------------- ------------------ ------------
Y-T-D 3.98% 4.32% N/A
1 Year 9.80 10.96 8.49%
Since Inception 9.20 10.00 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio Composition (as of June 30, 1998)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
Treasury/Agency 18.6% less than 1 Year 2.3%
AAA 52.6% 1-3 Years 5.7%
AA 0.4% 3-5 Years 23.2%
A 14.9% 5-10 Years 44.5%
BBB 5.5% greater than 10 Years 24.3%
Below BBB 3.2%
Cash/Other 4.8%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. There are special risks associated with international
investing including currency fluctuations, political and economic
instability, foreign taxation and different accounting standards, as
outlined in the current prospectus.
The performance of the portfolio on this page is reported net of Trust level
changes (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
(A) Strategic Bond Composite Index: 75% Lehman Brothers Aggregate Bond and 25%
J.P. Morgan Non-US Government Bond Index, Hedged.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
6
<PAGE>
INCEPTION: MAY 1, 1998
- --------------------------------------------------------------------------------
HIGH-YIELD BOND PORTFOLIO
WELLINGTON MANAGEMENT COMPANY, LLP CRAWFORD/SMITH/MCEVOY
- --------------------------------------------------------------------------------
In the first half of 1998, the 4.5% return of the high yield market (as
measured by the Lehman High Yield Index) surpassed the 3.9% return of the
investment grade market (as measured by the Lehman Brothers Aggregate Index),
as higher coupons more than offset widening spreads. High Yield new issuance
set two new consecutive quarterly records, $49.7 billion in the first quarter
and $56.3 billion in the second quarter of 1998. In fact, in the second
quarter the high level of supply outstripped demand, causing high yield to
underperform higher quality bonds. This widening of spreads was also fueled by
the weakening Asian economies, as the decline (and change in relative value)
in emerging markets bonds pulled down US high yield as well.
Our present strategy is to supplement our core holdings with opportunistic
investments in issues most impacted by recent weakness. The spread of the
Lehman High Yield Index over the 10 year Treasury increased from +314 basis
points as of December 31, to +363 basis points as of June 30, with all of the
widening coming in the last two months. The industries most affected have been
telecommunications, energy and home building. By using fundamental research to
identify investments that became unjustifiably undervalued, we have taken this
opportunity to overweight these three sectors compared to the Portfolio's
benchmark.
As of June 30, 1998, the two largest holdings in the Portfolio were P&L Coal
Holdings Corporation and Nextel Communications. P&L Coal is the holding
company for the largest private sector coal producer in the world. This new
issue came at an attractive spread-to-treasuries of +400 basis points and was
rated "B" by Standard & Poor's and "B2" by Moody's Investor Service. Nextel
Communications is a provider of differentiated wireless communication
services, primarily in the US. We initiated the portfolio's position in Nextel
in the secondary market based on the attractive valuation of the bonds, and
the company's unique assets and growth prospects.
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Nextel Communications 2.6% N/A
P&L Coal Holdings Corp. 2.6% N/A
Intermedia Communications, Inc. 2.6% N/A
GCI, Inc. 2.3% N/A
Standard and Pacific Corp. 2.2% N/A
Cross Timbere Oil Co. 2.0% N/A
Revlon Worldwide 2.0% N/A
Iridium Operating LLC/Capital 1.9% N/A
Lin Holdings Corp. 1.9% N/A
Advanced Micro Devices 1.9% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
High Yield L/B High Yield
Bond Portfolio Bond Index
---------------- --------------
Since Inception 0.28% 0.71%
(5/1/98)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio Composition (as of June 30, 1998)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
BBB 1.0% less than 2 Years 4.6%
BB 12.6% 2-4 Years 12.7%
B 77.5% 4-7 Years 71.1%
CCC & Below 5.2% greater than 7 Years 11.6%
Not rated 2.8%
Cash 1.0%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
7
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. JOHN FORELLI & TOM SPICER
- --------------------------------------------------------------------------------
The Managed Portfolio has returned a solid 13.08% net of fees during the
first half of 1998, almost 1% above its benchmark. The overall portfolio has
been impacted by three factors: 1) strong equity returns have exceeded the S&P
500 benchmark by about 2% this year; 2) U.S. fixed income returns have
surpassed the Lehman Corporate/Gov't index by 10 basis points; and 3) the
equity/fixed income mix of approximately 62%/38% is above the benchmark mix of
60%/40%. The U.S. bond portion of the account has moderately outperformed the
benchmark as its overweight position in corporate bonds combined with some
well-timed trades has added value. The non-U.S. denominated portion of the
fixed income account underperformed its benchmark primarily due to transaction
costs related to new investments initiated in May.
The Managed Portfolio continues to be positioned to take advantage of the
ever-changing global financial markets. Towards the end of 1997, we increased
the equity allocation of the Portfolio to about 60% and further increased the
allocation to about 62% during the second quarter of 1998. We also recently
initiated an investment in global fixed income and allocated just over 7% of
the total portfolio in non-U.S. dollar denominated bonds in order to take
advantage of higher yields and better total return opportunities globally.
Looking ahead, we still see a favorable outlook for U.S. equities as record
low inflation and long-term bond yields should help increase the valuation of
companies with solid earnings growth. Our research staff will focus on
avoiding the bad stocks resulting from earnings disappointments related to the
Far East and the slowdown in global economic growth. In fixed income, we will
try to outperform the Lehman Aggregate Bond Index going forward as we are now
fully positioned to take advantage of opportunities in the global fixed income
markets. We hope to add incremental return in the fixed income portion of the
Portfolio by seeking higher yields with similar credit risks globally.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Date Managed Composite Index# Managed Portfolio
- --------------------------------------------------------------------------------
6/30/88 10,000 10,000
9,952 10,011
9,800 9,960
10,115 10,312
10,342 10,507
10,211 10,423
10,320 10,457
01/01/89 10,762 10,720
10,587 10,613
10,741 10,758
11,132 11,084
11,492 11,449
11,649 11,695
12,293 12,064
12,316 12,084
12,319 12,124
12,331 12,261
12,515 12,371
12,672 12,479
01/01/90 12,160 12,016
12,252 12,066
12,414 12,205
12,203 11,978
12,975 12,586
13,035 12,764
13,095 12,891
12,409 12,288
12,155 12,032
12,213 12,087
12,740 12,625
13,010 12,997
01/01/91 13,371 13,364
13,907 13,885
14,121 14,083
14,221 14,152
14,559 14,512
14,219 14,136
14,641 14,471
14,981 14,816
15,015 14,859
15,182 15,045
14,952 14,842
16,058 15,853
01/01/92 15,790 15,608
15,933 15,718
15,733 15,515
16,009 15,844
16,207 16,070
16,209 16,117
16,743 16,565
16,648 16,440
16,857 16,646
16,759 16,491
17,034 16,819
17,292 17,076
01/01/93 17,543 17,295
17,844 17,558
18,066 17,875
17,915 17,608
18,152 17,872
18,388 18,139
18,404 18,119
18,966 18,733
18,929 18,805
19,160 19,022
18,961 18,841
19,120 19,058
01/01/94 19,583 19,503
19,106 18,986
18,456 18,429
18,499 18,524
18,633 18,527
18,382 18,343
18,870 18,756
19,258 19,047
18,880 18,645
19,086 18,727
18,719 18,437
18,917 18,632
01/01/95 19,345 18,982
19,944 19,551
20,306 19,806
20,743 20,246
21,587 21,022
21,927 21,330
22,249 21,669
22,422 21,929
23,006 22,579
23,135 22,623
23,835 23,350
24,230 23,681
01/01/96 24,722 24,045
24,579 23,945
24,594 23,972
24,689 24,021
24,987 24,309
25,206 24,541
24,674 24,003
24,906 24,208
25,827 24,968
26,482 25,577
27,731 26,558
27,305 26,218
01/01/97 28,169 26,839
28,313 26,933
27,555 26,304
28,579 27,016
29,589 27,799
30,427 28,552
32,100 30,167
31,028 29,313
32,121 30,297
31,842 29,996
32,663 30,714
33,116 31,125
01/01/98 33,533 31,471
34,709 32,899
35,651 34,116
35,920 34,347
35,803 34,235
6/30/98 36,713 35,198
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
US Treasury 15.5% 16.4%
General Electric Co. 2.0% 1.6%
Microsoft Corp. 1.7% 1.2%
Proctor & Gamble Co. 1.7% 0.2%
Home Depot, Inc. 1.5% 1.2%
United Technologies Corp. 1.4% 1.2%
Xerox Corp. 1.3% 1.3%
International Bk Recon & Development 1.2% 0.0%
PepsiCo, Inc. 1.2% 1.2%
Bell Atlantic Corp. 1.2% 1.3%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Managed Managed Composite MorningStar
Portfolio Index# Peer Group+
--------- ----------------- -----------
Y-T-D 13.08% 10.86% N/A
1 Year 23.28 20.66 21.68
5 Years 14.18 14.83 16.56
10 Years 13.41 13.89 14.69
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Governmental 15.5% 16.4%
Financial Services 7.6% 10.6%
Health Care Products 6.6% 7.9%
Banks 6.1% 8.0%
Insurance 6.0% 4.5%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
# Managed Composite Index: 50% S&P 500 and 50% Lehman Brothers Govt./Corp. Bond
Index.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
8
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
GROWTH AND INCOME PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. PAUL F. MCMANUS
- --------------------------------------------------------------------------------
After posting very strong returns in the first quarter of 1998, the stock
market became volatile in the second quarter. It reached a high in mid-May and
subsequently declined 6% through mid-June, before advancing at the close of
the quarter. The volatility was due in part to renewed fears about Asia and a
possibility that U.S. interest rates could go up in response to a very strong
first quarter performance by the U.S. economy. Ultimately, because of weakness
in Asia, the Federal Reserve opted to leave interest rates alone. Inflation
remains low as metal commodities, oil and wood product prices are weak. The
U.S. economy will grow, but at about half the rate it did in the first
quarter. Domestic conditions are ideal for financial markets. We expect that
negative effects from Asia will be felt more fully in the second half of 1998.
Portfolio performance has been ahead of the S&P 500 stock index for the first
half of 1998 as domestically exposed companies have generally done better than
Asian exposed companies. Health care, retailing, autos, and financials did
well in the first half while oil stocks, cyclicals such as paper and forest
products and utilities lagged. Contributors to performance were Home Depot,
General Electric, Lucent Technologies and Xerox. Laggards included Philips
Petroleum, Baker Hughers and BellSouth.
As we look out to the balance of the year, inflation is low, the economy is
growing and consumer confidence is high. This is constructive for financial
markets. We are starting to see the U.S. economy slow down from the very
strong pace of the first quarter, particularly in technology. Regardless of
the environment, we will continue our long term proven discipline of selecting
stocks that have good value and improving fundamental trends. And, at the same
time, we will continue to manage the risk of the Portfolio in the event of any
volatility as we saw in the second quarter.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
- --------------------------------------------------------------------------------
S&P 500 Index Growth and Income Portfolio
06/30/88 10,000 10,000
9,960 10,079
9,630 9,939
10,039 10,407
10,313 10,616
10,166 10,569
10,350 10,628
01/01/89 11,099 11,103
10,822 10,920
11,078 11,195
11,649 11,701
12,118 12,127
12,052 12,142
13,134 12,860
13,388 13,145
13,336 13,266
13,025 13,161
13,296 13,203
13,610 13,456
01/01/90 12,696 12,668
12,860 12,880
13,198 13,255
12,872 13,050
14,128 13,972
14,029 14,180
13,984 14,277
12,721 13,485
12,095 12,868
12,050 12,813
12,826 13,645
13,178 14,021
01/01/91 13,760 14,651
14,746 15,627
15,097 15,992
15,139 15,986
15,787 16,608
15,065 15,797
15,770 16,342
16,141 16,692
15,876 16,490
16,089 16,732
15,439 16,150
17,204 17,661
01/01/92 16,884 17,352
17,100 17,558
16,765 17,262
17,252 17,810
17,346 17,985
17,094 17,853
17,783 17,855
17,424 18,103
17,624 18,306
17,688 18,275
18,284 18,986
18,523 19,233
01/01/93 18,658 19,432
18,910 19,703
19,317 20,313
18,844 19,771
19,352 20,284
19,416 20,484
19,325 20,372
20,061 21,194
19,913 21,231
20,317 21,593
20,126 21,401
20,374 21,797
01/01/94 21,056 22,444
20,488 21,791
19,596 20,946
19,851 21,311
20,175 21,392
19,676 21,005
20,328 21,571
21,155 22,374
20,645 21,714
21,118 22,060
20,343 21,328
20,640 21,676
01/01/95 21,177 22,122
21,998 22,995
22,649 23,504
23,309 24,189
24,229 24,994
24,799 25,564
25,624 26,379
25,694 26,552
26,770 27,702
26,676 27,521
27,850 28,681
28,365 29,092
01/01/96 29,341 29,866
29,623 30,252
29,907 30,639
30,347 30,984
31,130 31,702
31,257 31,875
29,867 30,369
30,500 31,093
32,214 32,536
33,096 33,332
35,608 35,550
34,911 34,938
01/01/97 37,078 36,737
37,379 36,938
35,824 35,499
37,963 37,220
40,293 39,238
42,090 40,786
45,432 44,430
42,906 42,180
45,256 44,633
43,745 42,954
45,770 44,570
46,557 45,346
01/01/98 47,074 45,836
50,469 49,577
53,054 52,350
53,588 52,495
52,666 51,921
06/30/98 54,806 54,125
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS (AS OF JUNE 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 3.8% 3.7%
Microsoft Corp. 3.4% 2.5%
Procter & Gamble Co. 2.6% 2.1%
Citicorp 2.2% 2.3%
United Technologies Corp. 2.1% 1.9%
Merck & Co., Inc. 2.1% 3.0%
Lucent Technologies, Inc. 2.0% 1.5%
Home Depot, Inc. 2.0% 2.5%
PepsiCo, Inc. 1.9% 2.9%
Xerox Corp. 1.9% 1.9%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Growth & Income S&P 500 MorningStar
Portfolio Index Peer Group+
--------------- ------- -----------
Y-T-D 19.36% 17.72% N/A
1 Year 32.70 30.21 26.45
5 Years 21.45 23.06 21.05
10 Years 18.40 18.54 17.03
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Health Care Products 10.9% 12.1%
Insurance 9.1% 7.2%
Bank 7.1% 6.3%
Computer Equipment 6.2% 5.7%
Telephone 5.9% 3.1%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
9
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
T. ROWE PRICE ASSOCIATES, INC. BRIAN ROGERS
- --------------------------------------------------------------------------------
In recent months, company size and the predictability of earnings growth
emerged as critical requirements of investment success. Your portfolio's
results lagged the broad market because of its focus on precisely the type of
investment approach that has recently been out of favor. Nevertheless, for the
12 months ended June 30, 1998, your portfolio provided an attractive return,
which was only slightly behind our peer group average.
Without doubt, we have been out of sync with the market even though we did
nothing differently in recent months than we have been doing since the
portfolio's inception. However, despite the consistency of our investment
approach, several factors combined to hurt results so far in 1998. First, in
terms of sector allocation, the portfolio had little exposure to the strong
technology sector and too much exposure to the weaker energy and utility
sectors. We deliberately avoided many of the 50 or so S&P 500 stocks that have
accounted for so much of the broad market advance, since many had very high
price-to-earnings ratios and low or nonexistent dividend yields.
While we are unhappy about these short-term problems, your portfolio's 12-
month return is still in line with the peer group. Since our focus has always
been on the long term, we remain confident that our investment approach will
continue to reward shareholders over time.
In recent reports, we commented that the stock market cannot keep soaring to
new heights forever, yet it has been exceeding the expectations of even the
most optimistic bulls. However, at some point, stock market returns should
begin to moderate from their unsustainable levels. Whatever type of
environment we face, we assure you that our effor ts will be focused on making
sound investment decisions on your behalf in the months and years ahead.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Date Russell 1000 Value Index Large Cap Value Portfolio
- --------------------------------------------------------------------------------
4/30/96 10,000 10,000
10,125 10,190
10,133 10,255
9,750 9,977
10,029 10,186
10,428 10,618
10,831 10,860
11,616 11,451
11,468 11,390
1/1/97 12,024 11,699
12,201 11,979
11,762 11,724
12,256 12,016
12,941 12,582
13,496 13,059
14,511 13,805
13,994 13,447
14,840 14,081
14,425 13,703
15,063 14,220
12/31/97 15,503 14,643
15,283 14,538
16,312 15,249
17,310 15,954
17,426 15,869
17,167 15,598
6/30/98 17,387 15,561
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of investments
Mellon Bank Corp 1.9% 2.0%
Exxon Corp. 1.6% 1.2%
American Home Products Corp. 1.6% 1.4%
Alltel Corp. 1.5% 1.5%
Amoco Corp. 1.5% 0.9%
Dow Chemical Co. 1.4% 1.6%
Atlantic Richfield Co. 1.4% 1.5%
Chevron Corp. 1.3% 1.0%
Phillip Morris Cos., Inc. 1.3% 1.2%
Pharmacia & Upjohn, Inc. 1.3% 1.1%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Large Cap Russell 1000 MorningStar
Value Portfolio Value Index Peer Group+
--------------- ------------ -----------
Y-T-D 6.27% 12.16% N/A
1 Year 19.16 28.83 21.12
Since Inception 22.63 29.09 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Oils and Natural Exploration
and Production 12.3% 11.6%
Banks 9.7% 9.7%
Food, Beverage and Tobacco 8.4% 7.6%
Telephone 7.5% 9.6%
Electric Power 6.8% 8.4%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
10
<PAGE>
INCEPTION: MARCH 29, 1986
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. MARK LAPMAN
- --------------------------------------------------------------------------------
The extraordinary market returns continued through the first half of the year
with the S&P 500 returning 17.73% and the Russell 1000 Growth index advancing
20.38%. During the second quarter, a minor market correction occurred before
rebounding by quarter end. In the end, large capitalization growth stocks have
been the winners (Russell 1000 Growth increasing 20.38% during the first half
of 1998) while small capitalization stocks have been on the losing end
(Russell 2000 advancing only 5.3% during the first half of 1998).
The Large Cap Growth Portfolio has turned in an outstanding performance
through the first half of the year with returns net of fees of 22.88%, 2.5%
above the return of the Russell 1000 Growth index. Major contributors to
performance so far this year include specialty retailers Home Depot, Lowes and
Staples; telecommunication equipment companies such as Lucent Technologies and
Cisco Systems; and healthcare companies Allegiance, Cardinal Health, Guidant
and Bristol Myers Squibb.
The environment still appears favorable for large cap growth stocks as
investors are more than willing to pay up for consistent, predictable double-
digit earnings growth while long-term interest rates and inflation remain at
historic lows. Large capitalization consumer stocks are well positioned to
meet investors' criteria as "safe havens". Our philosophy at Independence
Investment of owning relatively inexpensive stocks with positive earnings
momentum will continue to drive our investment decisions. Avoiding companies
with significant exposure to the Far East or the slowing worldwide economies
will be extremely important to drive excess portfolio returns for the
remainder of the year. Our in-house research staff of 17 industry specialists
should give us the extra edge as we try to anticipate negative earnings
reports. Capital goods, basic materials and technology will be very difficult
areas in which to make money while investors should remain comfortable with
health care, specialty retailers, telecommunication equipment, software and
financials despite their seemingly excessive valuations.
[LINE GRAPH APPEARS HERE]
Date Large Cap Growth Benchmark Large Cap Growth Portfolio
(Formerly Select Stock)
- --------------------------------------------------------------------------------
06/30/98 10,000 10,000
9,962 10,044
9,624 9,940
10,034 10,375
10,313 10,569
10,166 10,506
10,344 10,597
01/01/89 11,101 11,082
10,825 10,884
11,077 11,138
11,652 11,675
12,124 12,172
12,055 12,219
13,143 12,956
13,400 13,175
13,346 13,286
13,036 13,324
13,302 13,546
13,621 13,739
01/01/90 12,707 12,913
12,870 13,108
13,211 13,444
12,882 13,280
14,138 14,217
14,042 14,466
13,997 14,541
12,732 13,789
12,112 13,253
12,061 13,268
12,841 14,190
13,198 14,690
01/01/91 13,773 15,380
14,758 16,437
15,116 16,942
15,151 16,986
15,805 17,721
15,081 16,864
15,784 17,408
16,158 17,761
15,887 17,464
16,101 17,546
15,452 16,933
17,220 18,429
01/01/92 16,899 18,148
17,118 18,352
16,785 18,024
17,277 18,593
17,362 18,808
17,104 18,657
17,802 19,324
17,438 18,963
17,643 19,151
17,704 19,175
18,307 19,885
18,531 20,261
01/01/93 18,686 20,451
18,941 20,824
19,341 21,455
18,873 20,682
19,378 21,302
19,435 21,613
19,357 21,446
20,091 22,376
19,937 22,655
20,349 22,996
20,155 22,744
20,399 23,057
01/01/94 21,093 23,758
20,520 23,022
19,626 22,277
19,877 22,715
20,203 22,641
19,708 22,302
20,355 22,860
21,190 23,660
20,672 22,951
21,136 23,169
20,367 22,493
20,669 22,831
01/01/95 21,205 23,259
22,031 24,139
22,681 24,686
23,349 25,296
24,282 26,157
24,846 26,596
25,670 27,458
25,735 27,668
26,821 28,791
26,725 28,460
27,898 29,642
28,435 30,055
01/01/96 29,403 30,760
29,676 31,122
29,962 31,517
30,403 32,047
31,465 32,755
31,508 32,718
29,662 30,543
30,427 31,518
32,643 33,447
32,840 33,695
35,305 36,140
34,614 35,546
01/01/97 37,041 37,580
36,789 37,858
34,798 36,077
37,109 37,985
39,788 40,172
41,380 41,762
45,040 45,792
42,403 43,513
44,490 46,224
42,846 44,361
44,665 46,010
45,166 46,527
01/01/98 46,516 47,771
50,014 52,290
52,008 55,250
52,727 55,668
51,231 54,467
06/30/98 54,369 57,173
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 5.1% 5.1%
Lucent Technologies, Inc. 4.6% 3.4%
Microsoft Corp. 4.0% 3.2%
Home Depot, Inc. 3.5% 3.4%
United Technologies Corp. 2.8% 2.8%
Bristol-Myers Squibb Co. 2.8% 3.0%
Procter & Gamble Co. 2.7% 1.5%
PepsiCo, Inc. 2.7% 3.0%
Johnson & Johnson 2.6% 3.0%
Travelers Group, Inc. 2.4% 1.1%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Large Cap Large Cap Growth MorningStar
Growth Portfolio Benchmark (1) Peer Group+
---------------- ---------------- -----------
Y-T-D 22.88% 20.38% N/A
1 Year 36.90 31.99 31.25
5 Years 21.48 22.84 16.26
10 Years 19.05 18.45 15.82
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Health Care Products 17.8% 22.3%
Computer Software and Services 8.9% 6.8%
Insurance 8.5% 4.6%
Retail - Department Store 7.4% 7.1%
Diversified Operations 7.0% 12.6%
- --------------------------------------------------------------------------------
(1) The index is represented by the S&P 500 for the period April 1986 to April
1996 and the Russell Large Cap Growth Index for the period May 1996 to
December 31, 1997
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
11
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
STATE STREET GLOBAL ADVISORS MANAGEMENT TEAM
- --------------------------------------------------------------------------------
The Equity Index Portfolio returned 17.67% from January 1, 1998 through June
30, 1998. In comparison, the S&P 500 Index returned 17.68%. Large
capitalization stocks continued their dominance of the U.S. equity markets in
the first half of 1997. The S&P 500 Index's return more than doubled the 8.59%
return of the S&P MidCap Index, and the 500 more than tripled the 4.93% return
of the Russell 2000 Index.
The Equity Index fund continued its steady growth in the first half of the
year. The net assets of the portfolio increased nearly 65% to approximately
$167 million. Bristol Myers and Wal-Mart entered the top ten holdings in the
first half of the year, while IBM and Philip Morris dropped out of the top
ten. There were also some changes in position in the top ten holdings. General
Electric remains the largest holding at 3.3%. GE's market capitalization was
$296 Billion on June 30. The top ten holdings represent over 19% of the total
fund.
The Equity Index Portfolio attempts to track the performance of the S&P 500
by fully replicating the index. The fund attempts to match the index holdings
and weights for each name in order to provide returns close to the index
return.
[LINE GRAPH APPEARS HERE]
- --------------------------------------------------------------------------------
Historical Portfolio Return
S&P 500 Equity Index Portfolio
4/30/96 10,000 10,000
10,258 10,210
10,300 10,231
9,842 9,825
10,050 9,971
10,615 10,509
10,906 10,787
11,734 11,561
11,504 11,423
1/1/97 12,218 12,133
12,317 12,221
11,805 11,736
12,510 12,409
13,278 13,119
13,870 13,727
14,971 14,821
14,139 13,993
14,913 14,756
14,415 14,267
15,082 14,887
15,342 15,169
1/1/98 15,512 15,336
16,631 16,441
17,482 17,280
17,658 17,455
17,355 17,151
6/30/98 18,060 17,850
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
General Electric Co. 3.2% 3.1%
Microsoft Corp. 2.9% 2.0%
Coca-Cola Co. 2.3% 2.1%
Exxon Corp. 1.9% 1.9%
Merck & Co., Inc. 1.8% 1.6%
Pftzer, Inc. 1.8% 1.2%
Wal-Mart Stores, Inc. 1.8% 1.1%
Intel Corp. 1.4% 1.5%
Proctor & Gamble Co. 1.3% 1.4%
Royal Dutch Petroleum Co. 1.3% 1.5%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Equity Index S&P 500 MorningStar
Portfolio(1) Index Peer Group+
------------ ------- ------------
Y-T-D 17.67% 17.72% N/A
1 Year 30.03 30.21 26.45
Since Inception 30.65 31.37 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
................................................................................
% of six months ago
investments % of investments
Health Care Products 11.1% 11.0%
Banks 6.8% 8.3%
Oil and Natural Gas Exploration and
Production 6.6% 7.8%
Food, Beverage and Tobacco 6.5% 7.2%
Telephone 6.1% 6.4%
- --------------------------------------------------------------------------------
(1) The net return without the capital contribution would have been 30.53% since
inception (for period ending 6/30/98).
* Total returns are for the period ended June 30, 1998. 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 and Standard & Poor's makes no representation regarding the
advisability of investing in the product.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
13
<PAGE>
INCEPTION: MAY 16, 1988
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
INDEPENDENCE INVESTMENT ASSOCIATES, INC. DALTON AVERY
- --------------------------------------------------------------------------------
The softness seen in the REIT sector in the first quarter continued in the
second quarter. In the three-year period ending last year, REITs achieved
annualized returns of 22%. This represented a period of recovery in the real
estate cycle while 1998 is seen as an equilibrium year with lower
expectations. In anticipation of this transitional period momentum investors
moved out of REITs into other sectors. We believe that the weakness in REITs
caused by this shift is more sentiment driven than fundamental. The outlook
for the various property sectors looks firm for the next few years. The
correction in REIT stock prices has overcompensated in repricing the sector.
The valuation on REITs is again very attractive. Valuations, along with the
substantial dividend yield and low risk should provide moderate returns in the
12-15% range. This is more consistent with the returns one should expect from
direct real estate investments. Real estate cycles move with the broader
economic cycle and the REIT sector should move in line with the real estate
cycle over time. As stocks, REITs anticipated the recovery in the cycle before
it occurred and that produced unsustainable returns for a few years. We now
expect REITs to move more in line with real estate markets.
The Portfolio remains diversified across all property sectors with an
overweight position in community shopping center REITs and an underweight in
hotels. These decisions were helpful in the second quarter as two shopping
center stocks, Kimco and Bradley Real Estate were the best performers in the
quarter while hotel REITs, Sunstone Hotels and Boykin were on the bottom. The
Portfolio outperformed the benchmark in the second quarter but slightly trails
the benchmark for the first half. REITs have shown a pattern of mediocre
performance in the first half in the past four years. The sector has rallied
in the second half each year and ended each year with superior total returns.
We believe that the stage is set for that pattern to continue in 1998.
[LINE GRAPH APPEARS HERE]
Historical Portfolio Return
Wilshire Real Estate Equity
Real Estate Index Portfolio
6/30/88 10,000 10,000
10,121 10,059
10,100 10,075
10,284 10,239
10,283 10,290
10,149 10,153
10,480 10,441
1/1/89 10,649 10,656
10,677 10,585
10,752 10,601
10,948 10,805
11,136 10,930
11,261 11,182
11,616 11,791
11,493 11,799
11,468 11,773
10,895 11,308
10,732 11,152
10,728 11,199
1/1/90 10,223 10,756
10,219 10,718
10,195 10,570
9,997 10,508
9,953 10,479
9,972 10,510
9,590 10,249
8,470 9,402
7,488 8,685
6,949 8,238
7,232 8,780
7,139 8,795
1/1/91 7,833 9,936
8,294 10,241
9,033 11,067
8,960 11,093
9,099 11,409
8,650 11,009
8,614 11,000
8,510 11,043
8,413 11,178
8,223 10,979
7,950 10,767
8,569 11,743
1/1/92 8,972 12,209
8,948 12,078
8,755 12,041
8,610 11,880
8,644 12,227
8,384 11,918
8,415 12,270
8,288 12,306
8,603 12,611
8,695 12,836
8,770 12,987
9,199 13,623
1/1/93 9,839 14,677
10,315 15,323
11,007 16,398
10,383 15,495
10,220 15,246
10,488 15,555
10,701 15,767
10,923 15,871
11,420 16,799
11,098 16,486
10,614 15,776
10,601 15,978
1/1/94 10,920 16,357
11,366 17,035
10,840 16,524
10,961 16,633
11,189 16,970
10,969 16,521
10,994 16,427
10,986 16,450
10,803 16,358
10,408 15,657
10,001 15,128
10,776 16,436
1/1/95 10,428 15,868
10,754 16,202
10,816 16,246
10,738 16,038
11,094 16,720
11,287 16,985
11,469 17,306
11,609 17,426
11,822 17,842
11,456 17,242
11,575 17,312
12,246 18,460
1/1/96 12,415 18,674
12,661 18,871
12,764 19,040
12,821 18,976
13,107 19,329
13,369 19,732
13,250 19,670
13,813 20,499
14,158 21,066
14,542 21,614
15,146 22,362
16,762 24,564
1/1/97 17,001 24,834
17,012 24,814
17,069 24,672
16,518 23,928
17,010 24,678
17,854 25,944
18,441 26,642
18,305 26,472
20,110 28,773
19,255 27,736
19,642 28,090
20,808 28,794
1/1/98 19,797 27,977
19,544 27,481
19,929 28,173
19,301 27,292
19,116 27,103
6/1/98 19,014 27,018
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Equity Residential Properties Trust 4.5% 4.4%
Avalon Bay Communities, Inc. 3.8% 2.3%
Equity Office Properties Trust 3.6% 2.5%
Crescent Real Estate Equities, Inc. 3.6% 3.3%
BRE Properties, Inc. 3.2% 3.0%
Duke Realty Investments, Inc. 3.0% 2.9%
Patriot American Hospitality, Inc. 2.9% 3.6%
Brandywine Realty Trust 2.9% 2.5%
Simon DeBartolo Group, Inc. 2.9% 2.7%
Catellus Development Corp. 2.8% 2.9%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Real Estate Wilshire Real
Equity Portfolio Estate Index
---------------- ------------
Y-T-D -6.17% 5.31%
1 Year 4.14 6.50
5 Years 11.67 18.99
10 Years 10.45 12.64
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Industries (as of June 30, 1998)
................................................................................
% of six months ago
investments % of investments
Real Estate Investment Trust 97.2% 91.7%
Real Estate Development 2.6% 5.3%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original costs. Sector investing entails special risks as discussed in
the prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
13
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
NEUBERGER & BERMAN, LLC M. KASSEN & R. GENDELMAN
- --------------------------------------------------------------------------------
The first half of 1998 was not a particularly rewarding period for value or
mid cap investors relative to their growth and large stock counterparts.
Cyclical companies--traditional repositories of value--underperformed as Asian
economic weakness began taking its toll on earnings. High profile growth
companies in the consumer non-durable and pharmaceuticals industries--which
are generally priced out of reach for true value disciples--were bid up even
higher as investors sought "safe" earnings. The largest stocks performed the
best relative to other capitalization ranges.
Eight of the twelve sectors of the Russell Mid Cap Value Index posted
negative returns for the second quarter. Producer Durables was the weakest at
- -11.98%, Energy was also weak at -8.64%, led by sharply lower crude prices.
Our timing and commitment to leading capital goods companies and commodity
oriented cyclicals like the papers, steels, chemicals and lower end
semiconductor chip manufacturers contributed to the underperformance this
quarter. We have not abandoned the cyclicals. In our opinion, many still offer
excellent long-term fundamental value.
While our investments in several cyclical industries disappointed, other
undervalued cyclical groups performed quite well. For example airline stocks,
most notably Continental Airlines, soared as earnings took off. Despite a good
run, we still think there is value in the airline group and in Continental.
N&B's strategy has consistently added value by purchasing securities that
have discounted price-to-earnings, price-to-cash flow ratios, healthy balance
sheets and strong management. The fact that the Portfolio's current average
P/E and price-to-cash flow are at a discount to those of the Russell index,
while the 12-month return on average equity exceeds that of the Russell index
shows our ability to find value. We take great comfort knowing we have
positioned the Portfolio in what we believe to be attractively priced, high-
quality companies with very favorable long-term prospects.
[LINE GRAPH APPEARS HERE]
Historical Portfolio Return
Russell Mid Cap Value Index Mid Cap Value Portfolio
4/30/96 10,000 10,000
10,096 10,249
10,106 10,095
9,625 9,572
10,029 10,035
10,397 10,516
10,671 10,708
11,341 11,616
12/31/96 11,294 11,618
11,648 12,270
11,846 12,227
11,486 11,872
11,775 12,211
12,470 13,281
12,933 13,423
13,893 14,692
13,730 14,905
14,582 15,713
14,139 15,047
14,616 15,249
12/31/97 15,175 15,355
14,880 15,248
15,874 16,325
16,691 16,945
16,598 16,838
16,211 16,044
6/30/98 16,262 15,464
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Harcourt General, Inc. 3.7% 2.4%
EXEL, Ltd. 3.3% 1.5%
Host Marriott Corp. 3.2% 2.0%
Biogen, Inc. 3.1% 2.1%
Crown Cork & Seal Co., Inc. 2.7% 2.5%
Orion Capital Corp. 2.6% 2.4%
SLM Holding Corp. 2.5% N/A
Oryx Energy Co. 2.5% 1.9%
Union Camp Corp. 2.2% 1.7%
Wellpoint Health Networks, Inc. 2.2% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Mid-Cap Russell Mid Cap MorningStar
Value Portfolio Value Index Peer Group+
--------------- --------------- -----------
Y-T-D 0.71% 7.17% N/A
1 Year 15.20 25.75 20.04
Since Inception 22.28 25.16 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
................................................................................
% of six months ago
investments % of investments
Electronic Products and Services 10.3% 5.6%
Insurance 9.1% 6.5%
Chemicals 7.5% 5.6%
Diversified Operations 7.2% 5.0%
Paper and Forest Products 5.7% 5.4%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
14
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
JANUS CAPITAL CORPORATION JIM GOFF
- --------------------------------------------------------------------------------
Markets moved ahead in the second quarter, as equities shook off Asian
weakness and related pressure on earnings to rally against a backdrop of
declining interest rates. Concerns over liquidity have favored large
capitalization stocks, despite continued above-average earnings growth by
their small and midsize counterparts. The Russell MidCap Growth Index
increased 11.87% during the first half of 1998, compared with a 17.72%
increase in the S&P 500 Index. Amid the growing pressure on margins, however,
investors are starting to recognize companies of any size that can grow
earnings at a consistent pace, regardless of the economy.
In this stock picker's market, our focus on companies with consistent
earnings growth has paid off. Since the beginning of the year, the Portfolio
increased a strong 18.62%, well outpacing our benchmark, the Russell MidCap
Growth Index. Many of our technology stocks were strong performers, including
Vitesse Semiconductor and America Online (AOL). Vitesse has a highly
profitable near-monopoly in high gate density semiconductors. AOL continues to
grow its subscriber base and win recognition as a media avenue with strong
advertising potential.
Apollo Group is another promising position. Apollo Group, and its subsidiary
University of Phoenix, offer a variety of higher education programs for
adults. Apollo continues to expand into new markets and new curriculums,
maintaining a lower cost structure than its traditional counterparts.
On the downside, some of our media stocks struggled, but we took advantage of
the weakness to add to our investments in Chancellor Media, Heftel
Broadcasting, and Univision. All three companies are uniquely positioned in an
industry that continues to see tremendous consolidation. We did scale back our
long-time position in Fastenal, selling at a profit. Despite its disciplined
cost management, we are concerned about the company's Asian exposure.
Looking ahead, we remain confident in the Portfolio's ability to generate
solid returns, whatever the economic environment. We continue to seek out
companies with strong earnings potential, relying on Janus' exemplary research
capabilities.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Date Russell Mid Cap Growth Mid Cap Growth Portfolio
- --------------------------------------------------------------------------------
4/30/96 10,000 10,000
10,204 10,252
9,896 10,020
9,128 9,186
9,621 9,881
10,232 10,473
10,112 10,325
10,708 10,408
10,528 10,269
1/1/97 10,993 9,994
10,751 9,827
10,144 9,079
10,392 9,186
11,323 10,176
11,637 10,693
12,751 10,907
12,626 10,950
13,265 11,734
12,601 11,385
12,733 11,547
12,901 11,980
1/1/98 12,668 11,743
13,859 12,728
14,440 13,429
14,636 13,656
14,034 13,098
6/30/98 14,431 14,211
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Heffel Broadcasting Corp. 5.2% 2.4%
Apollo Group, Inc. 5.2% 4.0%
Omnicare, Inc. 5.0% 5.9%
CIT Group Holdings, Inc. + Cl. A 4.9% N/A
Vitesse Semiconductor Corporation 4.8% 0.5%
PizzaExpress plc 4.1% 4.2%
Chancellor Media Corp. 4.0% 2.2%
Sofamor Danek Group, Inc. 3.9% 1.3%
Paychex, Inc. 3.9% 5.9%
Cadence Design Systems, Inc. 3.5% 2.6%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Mid Cap Russell Mid Cap MorningStar
Growth Portfolio Growth Index Peer Group+
---------------- --------------- -----------
Y-T-D 18.62% 11.87% N/A
1 Year 32.90 24.02 26.48
Since Inception 17.61 18.45 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Media - TV/Radio 19.0% 10.1%
Commercial Services 11.3% N/A
Financial Services 10.4% 6.1%
Health Care Products 9.7% 2.7%
Banks 7.8% 2.4%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
15
<PAGE>
Inception: May 1, 1994
- --------------------------------------------------------------------------------
DIVERSIFIED MID CAP GROWTH PORTFOLIO (Formerly Special Opportunities) JOHN
HANCOCK ADVISERS, INC. Barbara Friedman
- --------------------------------------------------------------------------------
In January, Barbara C. Friedman, CFA, was named lead portfolio manager of the
Diversified Mid Cap Growth Portfolio. Although a few important modifications
were made to the portfolio, the broad underlying investment philosophy of
emphasizing the fastest growing sectors remains in tact. We increased the
number of industries within each sector and the number of holdings in the
portfolio to enhance diversification and reduce risk. We believe these changes
will positively influence performance over the long term.
The portfolio underperformed the benchmark returning 10.62% while the Russell
MidCap Growth Index returned 11.87% for the first six months of the year. We
applied a consistent investment theme throughout the first half of 1998 with
overweighted allocations to the Technology, Health Care, and Consumer Staples
sectors.
Since the impact of Asia is still uncertain, we avoided hardware companies in
the Technology sector. Instead, we purchased software, services, and
domestically focused companies with limited Asian exposure and high earnings
visibility. Many of our holdings in this segment of the technology sector
performed well. The decision to emphasize this group contributed to the
portfolio's performance.
Our Health Care holdings were also positive for performance. Demographic
changes have created superior underlying fundamentals for the Health Care
sector. As the baby boom generation ages, demand for health services will
increase dramatically. We believe this trend will broadly impact the sector
and we purchased stocks throughout many industries to exploit these changes.
The robust economy continues to favor the consumer. Low interest rates, low
inflation, modest wage growth, and low unemployment increased disposable
income and consumer buying power. During the first six months we increased our
allocation to the Consumer Staples sector in order to take advantage of this
favorable trend. Several holdings within the group added to performance.
However, on average the sector was underweighted which detracted mildly from
performance. We expect the outlook for these sectors to remain exceptional and
will maintain our emphasis over the next several months.
[LINE GRAPH APPEARS HERE]
Historical Portfolio Return
Diversified Mid Cap Growth
Russell Midcap Growth Special Opportunities
4/30/94 10,015 10,000
9,584 10,000
9,849 10,000
10,437 10,000
10,265 10,000
10,442 10,000
9,982 10,000
10,121 10,000
1/1/95 10,243 10,000
10,788 10,000
11,216 10,000
11,310 10,000
11,589 10,000
12,116 10,000
12,879 12,564
13,020 12,807
13,310 12,764
12,973 12,361
13,553 13,160
13,560 13,672
1/1/96 13,800 14,151
14,322 14,612
14,435 14,939
15,132 16,011
15,441 16,455
14,975 16,237
13,812 14,615
14,559 15,484
15,483 16,411
15,302 16,926
16,203 17,438
15,930 17,820
1/1/97 16,635 17,845
16,269 16,824
15,350 15,825
15,726 15,365
17,135 16,487
17,609 16,713
19,294 18,028
19,106 17,686
20,073 19,025
19,068 18,622
19,268 18,188
19,521 18,432
1/1/98 19,170 18,106
20,972 19,666
21,851 20,641
22,148 20,584
21,237 19,648
6/30/98 21,838 20,389
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Keane, Inc. 1.8% 1.5%
Unisys Corp. 1.7% N/A
Netlink Communications, Inc. 1.7% 0.8%
Outdoor Systems, Inc. 1.6% N/A
Lexmark International Group, Inc. 1.5% N/A
Forrest Laboratories, Inc. 1.5% N/A
Networks Associates, Inc. 1.5% N/A
Bea Systems, Inc. 1.4% N/A
Interim Services, Inc. 1.3% N/A
Intermedia Communications, Inc. 1.3% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Diversified Mid Russell Mid Cap MorningStar
Cap Growth Growth Index Per Group+
--------------- --------------- -----------
Y-T-D 10.62% 11.87% N/A
1 Year 21.99 24.02 26.48
3 Year 20.50 21.70 20.02
Since Inception 18.71 21.70 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
................................................................................
% of six months ago
investments % of investments
Computer Software and Services 14.4% N/A
Insurance 8.9% 9.1%
Health Care Products 7.5% 3.0%
Banks 7.3% 10.1%
Telecommunications Services 6.3% 5.0%
- --------------------------------------------------------------------------------
* Total returns for the period ended June 30, 1998. 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. Sector investing entail special risks as discussed in the
prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
16
<PAGE>
INCEPTION: MAY 1, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
GOLDMAN SACHS ASSET MANAGEMENT JONES/CLARK/PINTER
- --------------------------------------------------------------------------------
For the period since inception, May 1, 1998, through June 30, 1998, the
Small/Mid Cap CORE Equity Portfolio significantly outperformed its benchmark,
the Russell 2500 Index, by 173 basis points as the fund returned (2.79%) at NAV
vs. (4.53%) for the Index.
In the second quarter small capitalization stocks fared poorly relative to
larger capitalization stocks. Although the pace of the US equity market has
slowed considerably, investors continue to search among large cap, growth names
for safety and predictability in a mature bull market.
Of the three investment themes considered by the model (Value, Momentum, and
Low Risk) the portfolio had an above-average tilt towards value-oriented
securities. As we intend, the model's stock-picking ability drove the quarter's
performance. Stock selection had the largest impact on returns; industry
exposures and factor tilts remained fairly modest, contributing relatively less
to the fund's returns. Since we remain fully invested, market timing affected
performance only minimally.
The fund's sector exposures continue to approximate those of the Russell 2500
Index. Its current tilt toward value stocks continued to result in a slight
overweighting in "cheap sectors" (e.g., consumer durables) and a slight
underweighting in "pricey" sectors (e.g., communications). In addition, we have
overweighted positions in insurance which have added substantially to
performance.
By quarter-end, our model became slightly less defensive, remaining overweight
to the Value theme, while placing less emphasis on Low Risk and Momentum themes
(relative to long-term averages). This stance is based on the fundamental
economic conditions--low equity risk premiums and long bond default premium, a
volatile market and a growing economy--that we have witnessed recently. In
addition, the dividend yield is quite low by historical standards, supporting
our current weightings.
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Energy East Corp. 1.8% N/A
Hertz Corp. - CI.A 1.8% N/A
Hartford Life, Inc. - CI.A 1.7% N/A
FirstFed Financial Corp. 1.6% N/A
Bindley Western Industries 1.5% N/A
Unisys Corp. 1.5% N/A
GATX Corp. 1.4% N/A
Dime Bancorp, Inc. 1.4% N/A
Public Service Co. of New Mexico 1.3% N/A
Sabre Group Holdings, Inc. 1.2% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Small/Mid Cap Russell 2500
Core Portfolio Index
-------------- ------------
Since Inception -2.79% -4.53%
(5/1/98)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Insurance 9.2% N/A
Commercial Services 5.8% N/A
Banks 5.4% N/A
Retail - Department Stores 5.2% N/A
Transportation Services 5.2% N/A
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
17
<PAGE>
Inception: May 1, 1996
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
INVESCO MANAGEMENT & RESEARCH Bob Slotpole
- --------------------------------------------------------------------------------
Small Cap Value Portfolio is a well-diversified portfolio with over 200
holdings. Relative to the Russell 2000 index, it is sector, industry and
macroeconomically neutral. This means that your Portfolio has the same weight
or sensitivity to these key variables as does the Russell 2000. As random
events affect the economy or influence the stock market, your portfolio is
likely to respond to these events the same way the Russell 2000 does. The
Portfolio is designed this way in order to maximize its usefulness in an asset
allocation framework. It is by no means a passive index. Superior returns have
been generated through superior stock selection.
Performance for the second quarter was down 4.2%. On a relative basis, the
Portfolio outperformed the Russell 2000 index by 46 basis points. While growth
stocks outperformed value stocks during the quarter, historically the opposite
has been true. Over long periods of time, particularly in the small cap
sector, a value orientation has produced superior performance. We believe this
substantiates the value focus of the fund. Currently the market is valuing
some internet growth' stocks at price-earnings multiples over 1000.
While our stock selection factors worked modestly in April and May, June was
a particularly strong month. However, June's performance was partially offset
by specific reversals in Stratus Computer and DSP Communications.
At INVESCO, we employ a highly diversified approach to small cap investing to
minimize the risk associated with sector forecasts. Buying companies that
represent the best relative values in each sector assures participation in the
return and diversification benefits of this asset class.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
Russell 2000 Small Cap Value Portfolio
4/30/96 10,000 10,000
10,394 10,232
9,967 10,126
9,097 9,630
9,625 10,161
10,001 10,450
9,847 10,340
10,253 10,678
10,521 11,033
1/1/97 10,732 11,115
10,471 10,927
9,977 10,594
10,005 10,831
11,118 11,818
11,595 12,513
12,134 13,256
12,412 13,389
13,320 14,242
12,735 13,761
12,653 13,863
12,874 13,855
1/1/98 12,671 13,514
13,608 14,524
14,169 15,130
14,247 15,214
13,480 14,450
6/30/98 13,508 14,450
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Trigon Healthcare, Inc. 1.5% 1.4%
Bindley Western Industries, Inc. 1.5% 0.5%
Veritas DGC, Inc. 1.3% 0.5%
Generale Cable Corp. 1.3% N/A
Safeskin Corp. 1.2% 0.5%
FBL Financial Group, Inc. 1.2% 0.6%
United Stationers, Inc. 1.2% 0.6%
Canandaigua Brands Inc. - CI A 1.2% 0.1%
Orion Capital Corp. 1.2% 1.1%
Anchor Gaming 1.1% 0.4%
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Small Cap Russell 2000 MorningStar
Value Portfolio Index Peer Group+
--------------- ------------ -----------
Y-T-D 4.29% 4.93% N/A
1 Year 15.48 16.50 13.55
Since Inception 18.51 14.89 N/A
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Health Care Services 7.2% 6.5%
Banks 6.6% 10.1%
Real Estate Investment Trust 6.7% 5.7%
Insurance 6.3% 6.4%
Computer Software and Services 6.0% 3.8%
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
18
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
JOHN HANCOCK ADVISERS, INC. BERNICE BEHAR
- --------------------------------------------------------------------------------
The Small Cap Growth Portfolio produced excellent returns for the first half
of the year. The portfolio gained 8.76% while the Russell 2000 Growth returned
5.46%.
Our strategy of focusing on software and services companies within the
Technology sector benefited the portfolio. These industries produced solid
returns partially due to their limited exposure to Asia. Our decision to avoid
hardware companies also benefited the portfolio. Several hardware companies
declined considerably from slumping Asian demand. Recently, we uncovered a few
hardware names with attractive valuations and solid growth prospects. Although
the majority of the portfolio will remain focused on software and services
companies, we expect to add a select number of hardware names over the next
few months.
Another positive contributor to performance was the Consumer Cyclicals
sector. Favorable economic factors such as low interest rates, steady wage
growth, and low unemployment created an ideal consumer environment. Such
exceptional underlying fundamentals allowed us to identify many promising
securities within the sector that resulted in a meaningful overweighted
position. Some of the portfolio's strongest gains were drawn from stocks in
the retail industry. We focused primarily on smaller niche retailers actively
gaining market share through consolidation.
Despite more favorable valuations and growth rates relative to large caps,
small cap stocks continue to underperform their large cap peers. The
performance lag can partly be attributed to market volatility caused by the
lingering Asian crises. Investors have been willing to pay a premium for the
liquidity of large cap stocks. We believe as the crises in Asia stabilizes,
market volatility will diminish. At that time, we believe investors will
recognize the compelling valuations and growth rates of small cap stocks.
Historical Portfolio Return
Date Russell Growth Small Cap Growth Portfolio
4/30/96 10,000 10,000
10,513 10,599
9,830 10,294
8,630 9,480
9,269 10,298
9,746 11,151
9,325 10,170
9,585 9,976
9,772 9,950
1/1/97 10,016 10,302
9,411 9,638
8,747 8,962
8,646 8,763
9,945 9,781
10,282 10,514
10,809 11,205
11,133 11,571
12,022 12,817
11,300 11,834
11,031 11,387
11,037 11,370
1/1/98 10,889 11,170
11,851 12,062
12,348 12,788
12,424 12,730
11,521 11,856
6/30/98 11,639 12,366
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Metromedia Fiber Network, Inc. 1.2% 0.7%
Micromuse, Inc. 1.2% N/A
Network Applicance, Inc. 1.1% 1.4%
Medallion Financial Corp. 1.0% 0.8%
VeriSign, Inc. 1.0% N/A
ProBusiness Services, Inc. 1.0% 0.6%
AmeriCredit Corp. 0.9% N/A
American Italian Pasta Co. 0.9% 0.7%
Intermedia Communications, Inc. 0.9% N/A
Dendrite International, Inc. 0.9% N/A
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Small Cap Russell 2000 MorningStar
Growth Portfolio Growth Index Peer Group+
---------------- ------------ -----------
Y-T-D 8.76% 5.46% N/A
1 Year 17.62 13.19 19.26
Since Inception 10.30 14.89 N/A
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Computer Software and Services 17.8% 8.7%
Commercial Services 8.2% N/A
Retail - Department Store 7.4% 9.2%
Financial Services 4.5% 4.1%
Electronic Products and Services 4.4% 4.0%
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
19
<PAGE>
INCEPTION: MAY 1, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
SCUDDER KEMPER INVESTMENTS, INC. W. HOLZER & D. ESPINOSA
- --------------------------------------------------------------------------------
National equity markets have diverged markedly in the last few months.
Corporate profits growth in the US has slowed to a creep. While the Asian
crises, a high dollar and pricing pressures are often cited reasons, the
slowdown looks suspiciously like the maturing of an economic cycle. Record
numbers of takeovers and mergers indicate a move by corporations to dominate
their markets.
"Darkside Restructuring" is in full swing in Europe and it is the largest
theme within the portfolio. We foresee this continuing for some years to come.
However, its ideas are now well appreciated by investors. The largest
concentration in the "Darkside Restructuring" theme is in German
chemical/pharmaceutical giants and the German utility/conglomerates which are
responding to the deregulation of the European electricity industry. Recently
we added the French auto company Peugeot which has new leadership, a strong
profits outlook and new appeal in the context of what appears to be a
consolidating global auto industry.
Influenced by valuation, our second most heavily weighted theme is entitled
"Secure Streams of Income." We anticipate that the Yuppie generation that
inflated house prices in the 1980's and stock prices in the 1990's will choose
to lock in their gains and opt for security as they approach retirement. Early
on, we established positions in electric utilities. More recently we have
added Lockheed Martin whose profits are underpinned by an increasing defense
budget and a strong internal efficiency plan.
While Europe has charged forth on EMU optimism and corporate restructuring,
and the US has risen on seemingly unrealistic earnings expectations, Asia has
been struggling to emerge from economic and financial collapse.
As always, we continue to monitor the impact of economic, social, demographic
and technological changes in the world economy with an eye towards valuations.
Recent run-ups in Europe and the US have merely emphasized the importance of
such a focus.
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Net Assets % of Net Assets
U.S. Treasury 8.5% N/A
Treasury 2.4% N/A
SAP AG 2.0% N/A
Novarils AG 1.8% N/A
Unilever 1.8% N/A
Rwe AG 1.7% N/A
International Business Machines Corp. 1.7% N/A
VEBA AG 1.7% N/A
CS Holding AG 1.6% N/A
U.S. Airways Group, Inc. 1.6% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Global Equity MSCI
Portfolio World Index
------------- -----------
Since Inception -0.06% 1.12%
(5/1/98)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industry Classifications (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Net Assets % of Net Assets
Insurance 16.3% N/A
Chemicals 7.8% N/A
Computer Software and Services 6.9% N/A
Health Care Products 6.5% N/A
U.S. Governmental 5.5% N/A
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
20
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
BRINSON PARTNERS, INC. MANAGEMENT TEAM
- --------------------------------------------------------------------------------
For the quarter ending June 30th, non-U.S. equity markets rose 1.6% in
dollar-hedged terms, significantly less than the prior quarter's 16.7% return.
On a year-to-date basis, non-U.S. markets were up 18.6% (in dollar-hedged
terms), representing a very strong six month return. Negative returns from the
South East Asian region occurred primarily during the second quarter as the
real economic impact of the Asian debt crisis has proved more severe than
initially anticipated. Returns across the non-U.S. bond markets (in dollar
hedged terms) ranged from the high of 3.4% in Sweden to the lower return of
1.0% in Ireland. Non-U.S. bond markets provided a 2.3% return for the quarter,
less than the previous quarter's 3.1% return. On a year-to-date basis, non-
U.S. bond markets were up 5.4% (in dollar-hedged terms). Currency effects on
returns have been modest for the first half of 1998.
In the International Balanced Portfolio, we continue to emphasize the non-
U.S. bond markets relative to non-U.S. equity markets. Among international
equity markets, we continue to maintain a significant underweight position in
Japan in recognition of a number of vulnerabilities in the Japanese economy.
We continue to emphasize New Zealand and Australia, and small overweight
positions are held in Belgium, Finland, and the U.K. Among international bond
markets, we have no exposure to the unattractive Japanese bond market. The
Portfolio holds overweight positions in the bond markets in Germany, Denmark,
the U.K., Australia, Canada, and the Netherlands. Duration strategies across
most non-U.S. bond markets are slightly less than the respective market
average. The Portfolio's currency strategies include modest underweights in
the Japanese yen and the British pound sterling, and a smaller underweight of
the Hong Kong dollar. The U.S., Australian and New Zealand dollars are
slightly overweighted within the Portfolio.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
International Balanced International Balanced
Date Composite Index (A) Portfolio
- --------------------------------------------------------------------------------
4/30/96 10,000 10,000
9,890 9,992
9,940 10,055
9,847 9,956
9,898 10,007
10,066 10,257
10,082 10,315
10,396 10,678
10,278 10,673
1/1/97 9,927 10,509
9,983 10,624
9,964 10,568
9,934 10,507
10,489 11,089
10,896 11,433
10,928 11,471
10,411 10,986
10,879 11,470
10,433 11,127
10,260 10,967
10,287 10,955
1/1/98 10,599 11,195
11,099 11,630
11,269 11,808
11,412 11,952
11,366 11,952
6/30/98 11,383 11,915
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Federal Republic of Germany 9.5% 10.8%
U.K. Treasury 6.7% 7.5%
Government of France 5.4% 1.7%
Kingdom of Denmark 4.5% 5.1%
Government of Canada 4.5% 5.1%
Government of Netherlands 3.2% 4.1%
Government of Spain 2.7% 3.1%
Republic of Italy 2.6% 2.5%
Queensland Treasury 1.7% 1.7%
Commonwealth of Australia 1.3% 1.6%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
International Balanced International Balanced MorningStar
Portfolio Composite Index (A) Peer Group+
---------------------- ---------------------- -----------
Y-T-D 8.76% 10.66% N/A
1 Year 4.21 4.47 7.69
Since Inception 8.42 6.16 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Foreign Governmental 42.2% 44.4%
Banks 7.6% 7.7%
Food, Beverage and Tobacco 4.5% 3.8%
Health Care Products 4.2% 4.1%
Diversified Operations 3.6% 4.1%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. There are special risks associated with international
investing including currency fluctuations, political and economic
instability, foreign taxation and different accounting standards, as
outlined in the current prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are
described in your product prospectus.
(A) International Balanced Composite Index: 65% Morgan Stanley Capital
International World Index Excluding US, and 35% Salomon Brothers Non-US
Govt.
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 6/30/98. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
21
<PAGE>
Inception: May 2, 1988
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO (formerly International Equity)
INDEPENDENCE INTERNATIONAL ASSOCIATES INC. NORMAN MELTZ
- --------------------------------------------------------------------------------
For the six months ending June 30, 1998, the International Equity Index
Portfolio rose 17.21% while the EAFE Index rose 15.92%.
On May 1st Independence International Associates began managing the Portfolio
and implemented a different strategy for investing in international equity
markets. We now manage this Portfolio as an indexed portfolio whose objective
is to track the Morgan Stanley EAFE Gross Domestic Product Index (GDP Index)
as closely as possible.
The GDP Index includes the same 21 countries as in the EAFE Index. However
unlike the EAFE Index, each country's weight in the GDP Index is determined by
its percentage of the total GDP of all 21 countries. Within each country, the
GDP Index includes the stocks in the respective Morgan Stanley country index
just as in the EAFE Index. Each stock's weight within its country equals its
percentage of the total capitalization (total market value) for that country.
Historically, the GDP Index has provided better diversification than EAFE and
produced higher returns with lower volatility.
Over the past six months European equity markets have performed
exceptionally. Of the fifteen European markets in which the Portfolio invests,
fourteen delivered double digit returns. As measured by the Morgan Stanley
country indexes Finland led all European countries with a 65.6% return; Spain
rose 43.9%; Belgium increased 43.6%; France rose 38.9% and Germany rose 36.6%.
The only country whose market slumped was Norway which fell 4.0%, hurt by the
drop in oil prices across the world.
In contrast to Europe, equity markets in the Pacific region continued to
suffer from the effects of the economic and currency problems that began in
July 1997. Of the six Pacific region countries where the Portfolio invests as
of June 30th only one, Australia, managed to avoid a decline in its stock
market. Japan, although falling only 2.6% for the period, negatively impacted
the other countries due to its reduced investments in the other countries and
its reduced imports from them.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
MSCI EAFE Index International Equity
Index Portfolio
- --------------------------------------------------------------------------------
6/30/88 10,000 10,000
10,316 9,922
9,648 9,389
10,071 9,900
10,935 10,452
11,589 10,676
11,656 10,647
1/1/89 11,864 10,884
11,927 10,959
11,695 10,969
11,806 11,181
11,166 10,821
10,981 10,481
12,363 11,529
11,809 11,139
12,348 11,517
11,854 11,317
12,453 11,756
12,915 12,169
1/1/90 12,437 11,666
11,572 11,471
10,368 11,527
10,288 11,418
11,465 12,324
11,367 12,508
11,530 12,693
10,414 11,541
8,966 10,797
10,365 11,065
9,757 11,145
9,919 11,203
1/1/91 10,242 11,374
11,343 12,042
10,665 12,197
10,772 12,249
10,888 12,533
10,091 11,877
10,589 12,466
10,376 12,591
10,964 12,690
11,122 12,907
10,605 12,616
11,156 13,821
1/1/92 10,921 13,787
10,533 13,762
9,841 13,131
9,890 13,095
10,556 13,465
10,058 13,210
9,804 13,134
10,423 12,989
10,220 12,943
9,687 12,874
9,781 13,413
9,835 13,593
1/1/93 9,837 13,676
10,137 13,607
11,024 14,058
12,073 14,145
12,331 14,864
12,142 14,733
12,569 14,992
13,250 15,831
12,955 16,039
13,356 17,072
12,192 16,434
13,074 17,984
1/1/94 14,183 18,107
14,146 17,896
13,539 16,963
14,117 17,283
14,040 17,485
14,242 17,034
14,381 17,425
14,725 18,232
14,264 17,853
14,742 18,211
14,037 17,019
14,129 16,858
1/1/95 13,589 15,916
13,554 16,187
14,403 16,775
14,949 17,281
14,774 17,634
14,519 17,465
15,426 18,435
14,842 17,911
15,135 18,164
14,733 17,849
15,147 17,932
15,760 18,209
1/1/96 15,828 18,496
15,885 18,706
16,227 18,885
16,702 19,584
16,398 19,385
16,495 19,428
16,016 18,604
16,055 18,750
16,485 19,101
16,320 18,983
16,973 19,832
16,759 19,882
1/1/97 16,176 19,539
16,445 19,612
16,509 19,247
16,599 19,384
17,683 21,017
18,663 22,105
18,969 22,801
17,556 20,316
18,543 21,785
17,122 18,833
16,951 18,827
17,104 18,883
1/1/98 17,890 18,897
19,042 20,347
19,633 21,172
19,792 21,738
20,077 21,868
6/30/98 20,270 22,133
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Allianz AG 2.0% 0.0%
Ente Nazionale Idrocaburi SpA 2.0% 0.0%
Deutsche Telekom 1.6% 0.0%
Telecom Italia Mobile SpA 1.6% 0.0%
Daimler-Benz AG 1.4% 0.0%
Nippon Telegraph & Telephone Corp. 1.3% 0.0%
Assicurazioni Generali 1.2% 0.0%
Toyota Motor Corp. 1.2% 0.0%
France Telecom 1.2% 2.8%
Deutsche Bank AG 1.2% 0.0%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
International MSCI EAFE MorningStar
Equity Index Portfolio Index Peer Group+
---------------------- ---------- -----------
Y-T-D 17.21% 18.51% N/A
1 Year 0.12 8.61 9.40
5 Years 8.48 10.709 13.69
10 Years 8.27 7.32 10.75
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industry Classifications (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Banks 15.2% 21.3%
Telecommunications Services 7.4% 7.9%
Insurance 6.4% 6.6%
Diversified Operations 6.2% 2.6%
Food, Beverage and Tobacco 5.5% 5.6%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. Returns represent past
performance, assume reinvestment of all distributions, and are not indicative
of future performance. Investment returns and principal value of fund shares
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
22
<PAGE>
INCEPTION: MAY 1, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
ROWE PRICE-FLEMING INTERNATIONAL, INC. MARTIN WADE
- --------------------------------------------------------------------------------
International markets turned in sharply divergent performances through the
first half of 1998. As a result, the International Opportunities Portfolio
returned 14.12% compared with 15.93% for the benchmark MSCI EAFE index and
16.25% for the Lipper Variable Annuity benchmark.
Most European markets continued their ascent, encouraged by economic
fundamentals and buoyant fund flows. Of the major markets, Germany and France
were the best performers. Negative country selection impaired results versus
the Index while stock selection provided a small benefit.
Looking forward, high European stock valuations and the negative effects of
Asia could make short-term progress difficult but, longer term, supportive
fundamentals should enable these markets to rise further. We continue to
reduce exposure to Japan, while we are hopeful that Latin American markets
will perform well over the balance of the year.
Historical Portfolio Return
[LINE GRAPH APPEARS HERE]
MSCI EAFE International Opportunities
Index Portfolio
- --------------------------------------------------------------------------------
4/30/96 10,000 10,000
9,818 10,024
9,876 10,129
9,590 9,820
9,613 9,971
9,871 10,191
9,773 10,150
10,164 10,609
10,036 10,672
1/1/97 9,687 10,544
9,847 10,672
9,886 10,659
9,940 10,701
10,590 11,332
11,176 11,796
11,359 12,113
10,513 10,992
11,104 11,719
10,253 10,863
10,151 10,859
10,242 10,880
1/1/98 10,713 11,254
11,403 11,932
11,756 12,346
11,852 12,435
11,797 12,391
6/30/98 11,889 12,416
- --------------------------------------------------------------------------------
Top Ten Holdings (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
National Westminster Bank plc 2.5% 2.6%
Royal Dutch Petroleum Co. 2.3% 2.5%
SmithKline Beecham plc 2.1% 1.8%
Nestle SA 2.0% 1.4%
Wolters Kluwer NV 1.9% 1.7%
ING Groep NV 1.8% 1.1%
Diageo plc 1.6% 0.0%
KBC Bankverzekeringgs 1.6% 0.0%
Glaxo Wellcome plc + ADR 1.6% 1.2%
Compagnie Generale des Eaux 1.5% 1.4%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Intl. Opportunities MSCI EAFE MorningStar
Portfolio Index Peer Group+
------------------- --------- -----------
Y-T-D 14.12% 16.08% N/A
1 Year 5.26 6.38 9.40
Since Inception 10.50 8.31 N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Banks 16.1% 13.4%
Health Care Products 9.1% 10.2%
Food, Beverage and Tobacco 7.7% 5.3%
Diversified Operations 5.7% 6.9%
Electronic Products and Services 5.3% 5.6%
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. 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 the international
investing including currency fluctuations, political and economic instability,
foreign taxation and different accounting standards, as outlined in the
current prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/98. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
23
<PAGE>
INCEPTION: MAY 1, 1998
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
MONTGOMERY ASSET MANAGEMENT, LLC. J. JIMENEZ & B. SUDWEEKS
- --------------------------------------------------------------------------------
During its first two months of operations, through June 30, 1998, the
Emerging Markets Equity Portfolio returned -20.4% versus -23.6% before
deduction of insurance charges for the MSCI Emerging Markets Free Index. The
portfolio seeks capital appreciation by investing primarily in the equity
securities of companies in countries having economies and markets generally
considered by the World Bank to be emerging or developing.
Emerging Markets were highly volatile during the period. A declining yen and
a recession in Japan renewed worries that Southeast Asian economies would
suffer another round of currency devaluation. The financial turmoil was
aggravated by non-economic events, including the resignation of Indonesian
president Suharto and nuclear testing in India.
Given Asia's negative economic outlook, the Portfolio's position has been to
underweight its exposure relative to the benchmark in Asia, except for
China/Hong Kong. Among other major emerging markets, the Portfolio remains
overweight in Brazil and South Africa (an economy largely insulated from Asia,
apart from commodities) and underweight Mexico.
Montgomery views Brazil positively because it is maintaining a long-term
course toward stronger fiscal, monetary and economic systems, particularly
through its privatization programs. Similarly, South Africa has undertaken
corporate restructuring and a consumer spending boom and offers attractive
valuations. Montgomery believes that the current pressure on interest rates
and the currency is only a short-term concern.
Overall, the Portfolio's positions in Asia (21% of assets), Brazil (23%), and
Mexico (4.5%) boosted performance during the period while China/Hong Kong held
performance back.
Montgomery views the current turmoil in these markets as a prerequisite for
their long-term economic and market out-performance. Many developing markets
have initiated economic reform while stocks are selling at attractive
valuations. In addition, these markets offer growth potential not simply
because stock prices are down, but because of powerful trends toward long-term
global prosperity. For aggressive, long-term investors, now may be the time to
maintain or increase investment there.
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS (AS OF JUNE 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Telecomunicacoes Brasileiras 12.3% N/A
Companie Energetica de Minas
Gerals 5.2% N/A
Brisa-Auto Estradas de Portugal 4.0% N/A
JCI Ltd. 3.9% N/A
Al Ahram Beverage Co. S.A.E. 3.9% N/A
De Beers Centenary 3.6% N/A
Centrale Electricas Brasileiras SA 3.5% N/A
Haci Omer Sabancl Holding 3.2% N/A
Petroleo Brasileiro 2.7% N/A
ECI Telecommunications, Ltd. 2.6% N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Emerging Markets MSCI Emerging
Equity Portfolio Markets Free Index
---------------- ------------------
Since Inception -20.40% -22.76%
(5/1/98)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top Five Industries (as of June 30, 1998)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Telephone 18.8% N/A
Electric Power 13.4% N/A
Banks 11.1% N/A
Foods, Beverages, and Tobacco 9.0% N/A
Telecommunications Services 5.1% N/A
- --------------------------------------------------------------------------------
* Total returns are for the period ended June 30, 1998. 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 prospectus.
The performance of the portfolio on this page is reported net of Trust level
charges (i.e. investment management fees and operating expenses). It does not
reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
24
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(000's Omitted) Large Cap Sovereign Emerging International Global Small Cap International Mid Cap
Growth Bond Markets Equity Equity Index Equity Growth Balanced Growth
--------- --------- -------------- ------------- ------- --------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $689,927 $780,426 $ 9,676 $168,023 $14,820 $48,204 $25,370 $49,167
Net unrealized appreciation
(depreciation) of
investments................. 274,358 25,543 (1,998) 5,233 (78) 12,260 1,810 11,281
Short-Term Investments at
Market...................... 4,919 47,901 495 4,076 332 3,800
-------- -------- ------- -------- ------- ------- ------- -------
Total Investments.......... 969,204 853,870 8,173 177,332 14,742 60,464 27,512 64,248
Cash........................ 286 1,894 124 117 676 325
Receivable for:
Investments sold........... 197 10,844 485 112 940 3,805
Fund shares sold...........
Interest................... 13,467 20 317
Dividends.................. 819 4 233 17 10 47 11
Futures contracts daily
variation..................
Foreign currency sold...... 1,157 112 11,222 3,436
Unrealized appreciation in
forward foreign currency
contracts.................. 11
Other assets............... 289 7 30 1
-------- -------- ------- -------- ------- ------- ------- -------
TOTAL ASSETS............... 970,506 $880,075 $ 8,177 $179,631 $15,127 $61,414 $43,609 $68,021
LIABILITIES
Payables for:
Investments purchased...... 286 34,772 351 19 4,348 564
Fund shares purchased......
Foreign currency pur-
chased..................... 1,157 112 11,222 3,436
Future contracts daily
variation.................. 10
Unrealized depreciation in
forward foreign currency
contracts.................. 171 34
Other liabilities.......... 159 130 4 55 8 441 14 5
-------- -------- ------- -------- ------- ------- ------- -------
TOTAL LIABILITIES.......... 445 34,902 4 1,573 120 460 15,755 4,039
-------- -------- ------- -------- ------- ------- ------- -------
NET ASSETS.................. $970,061 845,173 8,173 178,058 15,007 60,954 27,854 63,982
======== ======== ======= ======== ======= ======= ======= =======
Shares of beneficial
interest outstanding........ 38,021 84,361 1,027 10,079 1,508 4,940 2,577 4,523
-------- -------- ------- -------- ------- ------- ------- -------
Net asset value per share... $ 25.51 $ 10.02 $ 7.96 $ 17.67 $ 9.95 $ 12.34 $ 10.81 $ 14.15
======== ======== ======= ======== ======= ======= ======= =======
Composition of net assets:
Capital Paid in............ 646,505 811,136 10,239 150,114 15,076 52,515 25,986 49,385
Accumulated net realized
gain/(loss) on
investments................ 50,248 4,281 (74) 22,011 9 (872) 353 4,031
Undistributed net
investment income.......... (1,050) 4,213 6 689 0 (2,949) (124) (681)
Net unrealized
appreciation/(depreciation)
of:
Investments................ 274,358 25,543 (1,998) 5,233 (78) 12,260 1,810 11,281
Foreign currency transla-
tion....................... 11 (171) (34)
Futures contracts..........
-------- -------- ------- -------- ------- ------- ------- -------
Net Assets.................. $970,061 $845,173 $ 8,173 $178,058 $15,007 $60,954 $27,854 $63,982
======== ======== ======= ======== ======= ======= ======= =======
</TABLE>
See notes to financial statements.
25
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Money Mid Cap Diversified Mid Bond Small/Mid Cap Real Estate Growth &
Value Market Value Cap Growth Index CORE Equity Income
--------- -------- ------- --------------- ------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $ 85,955 $93,253 $191,104 $23,715 $5,142 $161,849 $2,429,399
Net unrealized appreciation
(depreciation) of invest-
ments....................... 10,719 (1,748) 18,042 264 (137) 24,287 915,955
Short-Term Investments at
Market...................... 5,734 $271,022 7,725 12,408 1,475 0 1,554 70,010
-------- -------- ------- -------- ------- ------ -------- ----------
Total Investments.......... 102,408 271,022 99,230 221,554 25,454 5,005 187,690 3,415,364
Cash........................ 1 1 7
Receivable for:
Investments sold........... 6 1,143 73,018
Fund shares sold...........
Interest................... 11 414
Dividends.................. 207 42 135 2 1,380 3,735
Futures contracts daily
variation..................
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts..................
Other assets............... 1 1 3 13
-------- -------- ------- -------- ------- ------ -------- ----------
TOTAL ASSETS............... $102,633 $271,023 $99,273 $222,836 $25,868 $5,014 $189,070 $3,492,130
LIABILITIES
Payables for:
Investments purchased...... 1,771 254 116,321
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation..................
Unrealized depreciation in
forward foreign currency
contracts..................
Other liabilities.......... 48 75 58 22 10 2 88 542
-------- -------- ------- -------- ------- ------ -------- ----------
TOTAL LIABILITIES.......... 48 75 58 1,793 264 2 88 116,863
-------- -------- ------- -------- ------- ------ -------- ----------
NET ASSETS.................. 102,585 270,948 99,215 221,043 25,604 5,012 188,982 3,375,267
======== ======== ======= ======== ======= ====== ======== ==========
Shares of beneficial
interest outstanding........ 7,183 27,095 7,118 12,989 2,534 516 12,979 171,341
-------- -------- ------- -------- ------- ------ -------- ----------
Net asset value per share... $ 14.28 $ 10.00 $ 13.94 $ 17.02 $ 10.11 $ 9.72 $ 14.56 $ 19.70
======== ======== ======= ======== ======= ====== ======== ==========
Composition of net assets:
Capital Paid in............ 89,641 270,948 97,322 183,528 25,340 5,154 158,994 2,218,039
Accumulated net realized
gain/(loss) on investments. 2,223 4,121 18,015 0 (5) 4,546 240,153
Undistributed net
investment income.......... 2 (480) 1,458 0 0 1,155 1,120
Net unrealized
appreciation/(depreciation)
of:
Investments................ 10,719 (1,748) 18,042 264 (137) 24,287 915,955
Foreign currency
translation................
Futures contracts..........
-------- -------- ------- -------- ------- ------ -------- ----------
Net Assets.................. $102,585 $270,948 $99,215 $221,043 $25,604 $5,012 $188,982 $3,375,267
======== ======== ======= ======== ======= ====== ======== ==========
</TABLE>
See notes to financial statements.
26
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term Small Cap International Equity High Yield Strategic
Managed Bond Value Opportunities Index Bond Bond
---------- ---------- --------- ------------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $2,562,354 $61,526 $58,514 $42,199 $136,640 $ 9,944 $42,574
Net unrealized appreciation
(depreciation) of
investments................. 528,268 (26) 2,928 5,459 30,491 (95) 385
Short-Term Investments at
Market ..................... 33,987 633 1,721 1,342 198 214 276
---------- ------- ------- ------- -------- ------- -------
Total Investments.......... 3,124,609 62,133 63,163 49,000 167,329 10,063 43,235
Cash........................ 2,205 58 83 156
Receivable for: 8,257
Investments sold........... 828 184 148 2 211
Fund shares sold...........
Interest................... 16,573 979 212 901
Dividends.................. 2,180 48 55 178
Futures contracts daily
variation.................. 6
Foreign currency sold...... 645,357 17,665
Unrealized appreciation in
forward foreign currency
contracts.................. 22
Other assets............... 52 59 1
---------- ------- ------- ------- -------- ------- -------
TOTAL ASSETS............... $3,797,862 $65,317 $63,395 $49,320 $167,593 $10,275 $62,190
LIABILITIES
Payables for:
Investments purchased...... 4,596 2,205 333 124 975 119 214
Fund shares purchased......
Foreign currency purchased. 645,357 17,665
Future contracts daily
variation.................. 16 23
Unrealized depreciation in
forward foreign currency
contracts.................. 977
Other liabilities.......... 230 106 12 27 4 18
---------- ------- ------- ------- -------- ------- -------
TOTAL LIABILITIES.......... 651,176 2,311 345 151 998 123 17,897
---------- ------- ------- ------- -------- ------- -------
NET ASSETS.................. 3,146,686 63,006 63,050 49,169 166,595 10,152 44,293
========== ======= ======= ======= ======== ======= =======
Shares of beneficial
interest outstanding........ 196,939 6,250 4,888 4,080 10,030 1,024 4,237
---------- ------- ------- ------- -------- ------- -------
Net asset value per share... $ 15.98 $ 10.08 $ 12.90 $ 12.05 $ 16.61 $ 9.91 $ 10.45
========== ======= ======= ======= ======== ======= =======
Composition of net assets:
Capital Paid in............ 2,484,350 63,116 59,309 44,444 135,284 10,244 43,187
Accumulated net realized
gain/(loss) on investments. 135,896 (77) 812 (696) 844 3 636
Undistributed net
investment income.......... (921) (7) 1 (35) (68) 0 63
Net unrealized
appreciation/(depreciation)
of:
Investments................ 528,268 (26) 2,928 5,459 30,491 (95) 385
Foreign currency
translation................ (953) (3) 22
Futures contracts.......... 46 44
---------- ------- ------- ------- -------- ------- -------
Net Assets.................. $3,146,686 $63,006 $63,050 $49,169 $166,595 $10,152 $44,293
========== ======= ======= ======= ======== ======= =======
</TABLE>
See notes to financial statements.
27
<PAGE>
STATEMENT OF OPERATIONS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
Period Ended June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Sovereign Emerging International Global Small Cap International Mid Cap
Growth Bond Markets Equity Equity Index Equity Growth Balanced Growth
--------- --------- -------------- ------------- ------ --------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 253 $29,837 $ 16 $ 220 $ 26 $ 41 $ 410 $ 54
Dividends (Note B)......... 4,025 13 2,282 62 58 214 56
-------- ------- ------- ------- ---- ------ ------ ------
4,278 29,837 29 2,502 88 99 624 110
Expenses
Investment advisory fee
(Note C)................... 1,641 1,023 19 366 22 205 115 213
Auditors fees.............. 15 9 3 3 2 4 4 4
Custodian fees............. 107 74 17 152 26 52 86 53
Fidelity bond fees......... 1 1 1
Legal fees................. 5 3 4 2 3 4 4 4
Printing & mailing fees.... 60 38 14 36 10 21 20 21
Trustees fees.............. 3 2 1 1 2 2 2
Other fees................. 1 2 1 1 1
-------- ------- ------- ------- ---- ------ ------ ------
1,833 1,150 58 562 63 290 232 298
Less expenses reimbursed
(Note C)................... 35 35 17 83 22
-------- ------- ------- ------- ---- ------ ------ ------
1,833 1,150 23 562 28 273 149 276
-------- ------- ------- ------- ---- ------ ------ ------
Net Investment
Income/(loss)............... 2,445 28,687 6 1,940 60 (174) 475 (166)
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 50,248 4,281 (74) 22,011 9 (872) 353 4,031
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 122,464 1,400 (1,998) 2,026 (78) 5,593 1,429 5,027
Foreign currency
translation................ 8 74 8
-------- ------- ------- ------- ---- ------ ------ ------
Net realized and unrealized
gain/(loss) on investments. 172,712 5,681 (2,072) 24,045 (69) 4,721 1,856 9,066
-------- ------- ------- ------- ---- ------ ------ ------
Net increase/(decrease) in
net assets resulting from
operations................. $175,157 $34,368 $(2,066) $25,985 $ (9) $4,547 $2,331 $8,900
======== ======= ======= ======= ==== ====== ====== ======
</TABLE>
See notes to financial statements.
28
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
Period Ended June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Money Mid Cap Diversified Mid Bond Small/Mid Cap Real Estate Growth &
Value Market Value Cap Growth Index CORE Equity Income
--------- ------ ------- --------------- ----- ------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 218 $7,535 $ 214 $ 222 $280 $ 4 $ 120 $ 939
Dividends (Note B)......... 1,120 -- 418 686 5 5,401 22,884
------ ------ ------- ------- ---- ----- -------- --------
1,338 7,535 632 908 280 9 5,521 23,823
Expenses
Investment advisory fee
(Note C)................... 335 332 348 808 6 7 580 3,863
Auditors fees.............. 6 6 7 6 2 2 8 47
Custodian fees............. 69 42 58 51 11 15 59 298
Fidelity bond fees......... 1 1 1 0
Legal fees................. 5 4 6 4 2 2 6 6
Printing & mailing fees.... 28 29 33 66 11 10 35 184
Trustees fees.............. 2 2 3 2 3 3
Other fees................. 1 1 1 1
------ ------ ------- ------- ---- ----- -------- --------
447 417 457 937 32 36 691 4,402
Less expenses reimbursed
(Note C)................... 15 27
------ ------ ------- ------- ---- ----- -------- --------
447 417 457 937 17 9 691 4,402
------ ------ ------- ------- ---- ----- -------- --------
Net Investment
Income/(loss)............... 891 7,118 175 (29) 263 0 4,830 19,421
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 2,223 4,121 18,015 (5) 4,546 240,153
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 1,646 (4,988) 3,764 264 (137) (21,957) 283,261
Foreign currency
translation................
------ ------ ------- ------- ---- ----- -------- --------
Net realized and unrealized
gain/(loss) on investments. 3,869 (867) 21,779 264 (142) (17,411) 523,414
------ ------ ------- ------- ---- ----- -------- --------
Net increase/(decrease) in
net assets resulting from
operations................. $4,760 $7,118 $ (692) $21,750 $527 $(142) $(12,581) $542,835
====== ====== ======= ======= ==== ===== ======== ========
</TABLE>
See notes to financial statements.
29
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
Period Ended June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term Small Cap International Equity High Yield Strategic
Managed Bond Value Opportunities Index Bond Bond
-------- ---------- --------- ------------- ------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 38,703 $1,874 $ 139 $ 66 $ 5 $134 $1,092
Dividends (Note B)......... 13,223 -- 298 496 1063
-------- ------ ------ ------ ------- ---- ------
51,926 1,874 437 562 1,068 134 1,092
Expenses
Investment advisory fee
(Note C)................... 4,818 84 217 192 136 11 130
Auditors fees.............. 34 7 4 4 5 2 4
Custodian fees............. 209 66 49 107 104 12 46
Fidelity bond fees......... 1 0
Legal Fees................. 5 7 4 4 4 2 5
Printing & mailing fees.... 311 40 21 21 24 10 10
Trustees fees.............. 2 4 2 2 2 1 2
Other fees................. 1 1 1 5
-------- ------ ------ ------ ------- ---- ------
5,380 209 298 330 281 38 197
Less expenses reimbursed
(Note C)................... 13 86 281 23 22
-------- ------ ------ ------ ------- ---- ------
5,380 209 285 244 0 15 175
-------- ------ ------ ------ ------- ---- ------
Net Investment
Income/(Loss)............... 46,546 1,665 152 318 1,068 119 917
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 135,896 (77) 812 (696) 844 3 636
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 183,018 (43) 904 5,185 18,863 (95) (50)
Foreign currency
translation................ (953) 9 1 (97)
-------- ------ ------ ------ ------- ---- ------
Net realized and unrealized
gain/(loss) on investments. 316,961 (120) 1,716 4,498 19,708 (92) 489
-------- ------ ------ ------ ------- ---- ------
Net increase/(decrease) in
net assets resulting from
operations................. $364,507 $1,545 $1,868 $4,816 $20,776 $ 27 $1,406
======== ====== ====== ====== ======= ==== ======
</TABLE>
See notes to financial statements.
30
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Emerging International Equity
Large Cap Growth Sovereign Bond Markets Equity Index Global Equity
------------------------- ------------------------- -------------- ------------------------- --------------
Unaudited Unaudited Unaudited Unaudited Unaudited
Six-Month Six-Month Period from Six-Month Period from
Period Ended Year Ended Period Ended Year Ended May 1, 1998(*) Period Ended Year Ended May 1, 1998(*)
June 30, December 31, June 30, December 31, to June 30, June 30, December 31, to June 30,
1998 1997 1998 1997 1998 1998 1997 1998
------------ ------------ ------------ ------------ -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 2,445 $ 5,606 $ 28,687 $ 54,042 $ 6 $ 1,940 $ 1,263 $ 60
Net realized
gain/(loss) on
sales of
investments..... 50,248 62,455 4,281 5,170 (74) 22,011 6,237 9
Change in net
unrealized
appreciation
(depreciation)
of investments.. 122,464 101,020 1,400 13,744 (1,998) 2,026 (15,763) (78)
Foreign currency
translation..... 8 3
-------- -------- -------- -------- ------- -------- -------- -------
Net
increase/(decrease)
in net assets
resulting from
operations...... 175,157 169,081 34,368 72,956 (2,066) 25,985 (8,260) (9)
Distributions to
Shareholders
From:
Net investment
income.......... (2,445) (5,606) (28,687) (54,042) (1,474) (1,251) (60)
Realized gain on
investments..... (62,455) (5,170) (6,315)
Capital Paid in.
-------- -------- -------- -------- ------- -------- -------- -------
Decrease in net
assets resulting
from
distributions... (2,445) (68,061) (28,687) (59,212) (1,474) (7,566) (60)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 63,959 120,441 45,171 84,388 10,329 12,964 37,058 15,016
Distributions
reinvested...... 2,445 68,061 28,687 59,212 1,474 7,566 60
Payment for
shares redeemed. (23,453) (59,269) (38,136) (79,685) (90) (13,250) (32,192)
-------- -------- -------- -------- ------- -------- -------- -------
Increase/(decrease)
from Trust share
transactions.... 42,951 129,233 35,722 63,915 10,239 1,188 12,432 15,076
-------- -------- -------- -------- ------- -------- -------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 215,663 230,253 41,403 77,659 8,173 25,699 (3,394) 15,007
NET ASSETS
Beginning of
Period.......... 754,398 524,145 803,770 726,111 152,359 155,753 0
-------- -------- -------- -------- ------- -------- -------- -------
End of Period... $970,061 $754,398 $845,173 $803,770 $ 8,173 $178,058 $152,359 $15,007
======== ======== ======== ======== ======= ======== ======== =======
Analysis of Trust
Share
Transactions:
Sold............ 2,686 5,923 4,508 8,549 1,038 776 2,174 1,502
Reinvested...... 100 3,289 2,873 6,020 84 489 6
Redeemed........ (1,001) (2,941) (3,809) (8,095) (11) (805) (1,893)
-------- -------- -------- -------- ------- -------- -------- -------
Net increase in
shares
outstanding...... 1,785 6,271 3,572 6,474 1,027 55 770 1,508
======== ======== ======== ======== ======= ======== ======== =======
<CAPTION>
Small Cap Growth
-------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December 31,
1998 1997
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ (174) $ (93)
Net realized
gain/(loss) on
sales of
investments..... (872) (1,285)
Change in net
unrealized
appreciation
(depreciation)
of investments.. 5,593 5,855
Foreign currency
translation.....
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 4,547 4,477
Distributions to
Shareholders
From:
Net investment
income..........
Realized gain on
investments.....
Capital Paid in. (19)
------------ ------------
Decrease in net
assets resulting
from
distributions... (19)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 13,618 33,960
Distributions
reinvested...... 19
Payment for
shares redeemed. (5,972) (10,309)
------------ ------------
Increase/(decrease)
from Trust share
transactions.... 7,646 23,670
------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 12,193 28,128
NET ASSETS
Beginning of
Period.......... 48,761 20,633
------------ ------------
End of Period... $60,954 $ 48,761
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 1,143 3,175
Reinvested...... 2
Redeemed........ (501) (956)
------------ ------------
Net increase in
shares
outstanding...... 642 2,221
============ ============
</TABLE>
See notes to financial statements.
(*) Commencement of operations.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International Balanced Mid Cap Growth Large Cap Value Money Market
-------------------------- -------------------------- ------------------------- -------------------------
Unaudited Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
1998 1997 1998 1997 1998 1997 1998 1997
------------ ------------- ------------ ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 475 $ 803 $ (166) $ (71) $ 891 $ 1,057 $ 7,118 $ 11,999
Net realized
gain/(loss) on
sales of
investments..... 353 533 4,031 (165) 2,223 1,866
Change in net
unrealized
appreciation
(depreciation)
of investments.. 1,429 (530) 5,027 5,635 1,646 7,862
Foreign currency
translation..... 74 (188) 8 (42) 0
------- ------- ------- ------- -------- ------- --------- ---------
Net
increase/(decrease)
in net assets
resulting from
operations...... 2,331 618 8,900 5,357 4,760 10,785 7,118 11,999
Distributions to
Shareholders
From:
Net investment
income.......... (475) (793) (891) (1,057) (7,118) (11,999)
Realized gain on
investments..... (530) (1,847)
Capital Paid in. (29) (14)
------- ------- ------- ------- -------- ------- --------- ---------
Decrease in net
assets resulting
from
distributions... (475) (1,352) (891) (2,918) (7,118) (11,999)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 3,238 9,111 18,158 23,097 29,828 47,942 156,846 183,336
Distributions
reinvested...... 475 1,352 891 2,918 7,118 11,999
Payment for
shares redeemed. (3,013) (8,407) (3,311) (4,711) (5,272) (5,239) (122,459) (179,127)
------- ------- ------- ------- -------- ------- --------- ---------
Increase/(decrease)
from Trust share
transactions.... 700 2,056 14,847 18,386 25,447 45,621 41,505 16,208
------- ------- ------- ------- -------- ------- --------- ---------
NET INCREASE IN
NET ASSETS....... 2,556 1,322 23,747 23,743 29,316 53,488 41,505 16,208
NET ASSETS
Beginning of
Period.......... 25,420 24,098 40,235 16,492 73,269 19,781 229,443 213,235
------- ------- ------- ------- -------- ------- --------- ---------
End of Period... $27,976 $25,420 $63,982 $40,235 $102,585 $73,269 $ 270,948 $ 229,443
======= ======= ======= ======= ======== ======= ========= =========
Analysis of Trust
Share
Transactions:
Sold............ 302 863 1,403 2,214 2,093 3,809 15,685 18,333
Reinvested...... 44 130 62 220 712 1,200
Redeemed........ (283) (798) (254) (454) (372) (414) (12,246) (17,913)
------- ------- ------- ------- -------- ------- --------- ---------
Net increase in
shares
outstanding...... 63 195 1,149 1,760 1,783 3,615 4,151 1,620
======= ======= ======= ======= ======== ======= ========= =========
<CAPTION>
Mid Cap Value
-------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December 31,
1998 1997
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 175 $ 165
Net realized
gain/(loss) on
sales of
investments..... 4,121 4,133
Change in net
unrealized
appreciation
(depreciation)
of investments.. (4,988) 2,209
Foreign currency
translation.....
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... (692) 6,507
Distributions to
Shareholders
From:
Net investment
income.......... (175) (165)
Realized gain on
investments..... (4,605)
Capital Paid in. (4)
------------ ------------
Decrease in net
assets resulting
from
distributions... (175) (4,774)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 41,944 54,265
Distributions
reinvested...... 175 4,774
Payment for
shares redeemed. (7,010) (6,725)
------------ ------------
Increase/(decrease)
from Trust share
transactions.... 35,109 52,314
------------ ------------
NET INCREASE IN
NET ASSETS....... 34,242 54,047
NET ASSETS
Beginning of
Period.......... 64,973 10,926
------------ ------------
End of Period... $99,215 $64,973
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 2,905 3,902
Reinvested...... 12 347
Redeemed........ (485) (526)
------------ ------------
Net increase in
shares
outstanding...... 2,432 3,723
============ ============
</TABLE>
See notes to financial statements.
(*) Commencement of operations.
32
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Diversified Mid Cap Small/Mid Cap
Growth Bond Index CORE Real Estate Equity Growth & Income
------------------------- -------------- -------------- ------------------------- -------------------------
Unaudited Unaudited Unaudited Unaudited Unaudited
Six-Month Period from Period from Six-Month Six-Month
Period Ended Year Ended May 1, 1998(*) May 1, 1998(*) Period Ended Year Ended Period Ended Year Ended
June 30, December 31, to June 30, to June 30, June 30, December 31, June 30, December 31,
1998 1997 1998 1998 1998 1997 1998 1997
------------ ------------ -------------- -------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ (29) $ 182 $ 263 $ 0 $ 4,830 $ 8,981 $ 19,421 $ 39,576
Net realized
gain/(loss) on
sales of
investments..... 18,015 23,003 0 (5) 4,546 5,143 240,153 313,348
Change in net
unrealized
appreciation
(depreciation)
of investments.. 3,764 (14,445) 264 (137) (21,957) 14,800 283,261 272,766
Foreign currency
translation..... 0 0
-------- -------- ------- ------ -------- -------- ---------- ----------
Net
increase/(decrease)
in net assets
resulting from
operations...... 21,750 8,740 527 (142) (12,581) 28,924 542,835 625,690
Distributions to
Shareholders
From:
Net investment
income.......... (182) (263) (4,830) (8,255) (19,421) (39,576)
Realized gain on
investments..... (21,000) (5,072) (313,348)
Capital Paid in. (726)
-------- -------- ------- ------ -------- -------- ---------- ----------
Decrease in net
assets resulting
from
distributions... (21,182) (263) 0 (4,830) (14,053) (19,421) (352,924)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 9,786 59,814 25,077 5,255 15,043 46,042 138,716 259,249
Distributions
reinvested...... 21,182 263 4,830 14,053 19,421 352,924
Payment for
shares redeemed. (24,105) (49,050) (101) (17,611) (21,940) (92,248) (146,902)
-------- -------- ------- ------ -------- -------- ---------- ----------
Increase/(decrease)
from Trust share
transactions.... (14,319) 31,946 25,340 5,154 2,262 38,155 65,889 465,271
-------- -------- ------- ------ -------- -------- ---------- ----------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 7,431 19,504 25,604 5,012 (15,149) 53,026 589,303 738,037
NET ASSETS
Beginning of
Period.......... 213,612 194,108 204,131 151,105 2,785,964 2,047,927
-------- -------- ------- ------ -------- -------- ---------- ----------
End of Period... $221,043 $213,612 $25,604 $5,012 $188,982 $204,131 $3,375,267 $2,785,964
======== ======== ======= ====== ======== ======== ========== ==========
Analysis of Trust
Share
Transactions:
Sold............ 598 3,754 2,508 526 1,000 3,046 7,552 15,437
Reinvested...... 1,387 26 323 905 1,041 21,287
Redeemed........ (1,493) (3,006) (10) (1,174) (1,446) (5,025) (8,699)
-------- -------- ------- ------ -------- -------- ---------- ----------
Net increase in
shares
outstanding...... (895) 2,135 2,534 516 149 2,505 3,568 28,025
======== ======== ======= ====== ======== ======== ========== ==========
<CAPTION>
Managed
-------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December 31,
1998 1997
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 46,546 $ 108,103
Net realized
gain/(loss) on
sales of
investments..... 135,896 157,179
Change in net
unrealized
appreciation
(depreciation)
of investments.. 183,018 179,096
Foreign currency
translation..... (953)
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 364,507 444,378
Distributions to
Shareholders
From:
Net investment
income.......... (46,546) (108,103)
Realized gain on
investments..... (142,668)
Capital Paid in. (14,546)
------------ ------------
Decrease in net
assets resulting
from
distributions... (46,546) (265,317)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 100,453 188,049
Distributions
reinvested...... 46,546 265,317
Payment for
shares redeemed. (118,401) (218,960)
------------ ------------
Increase/(decrease)
from Trust share
transactions.... 28,598 234,406
------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 346,559 413,467
NET ASSETS
Beginning of
Period.......... 2,800,127 2,386,660
------------ ------------
End of Period... $3,146,686 $2,800,127
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 6,538 13,184
Reinvested...... 3,024 18,557
Redeemed........ (7,762) (15,347)
------------ ------------
Net increase in
shares
outstanding...... 1,800 16,394
============ ============
</TABLE>
See notes to financial statements.
(*) Commencement of operations.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International
Short-Term Bond Small Cap Value Opportunities Equity Index
------------------------- -------------------------- -------------------------- -------------------------
Unaudited Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
1998 1997 1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 1,665 $ 3,428 $ 152 $ 159 $ 318 $ 156 $ 1,068 $ 1,055
Net realized
gain/(loss) on
sales of
investments..... (77) (31) 812 3,158 (696) 268 844 1,622
Change in net
unrealized
appreciation
(depreciation)
of investments.. (43) 374 904 1,324 5,185 (761) 18,863 10,449
Foreign currency
translation..... 0 9 (10) 1 (1)
------- -------- ------- ------- ------- -------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... 1,545 3,771 1,868 4,641 4,816 (347) 20,776 13,125
Distributions to
Shareholders
From:
Net investment
income.......... (1,614) (3,446) (152) (159) (299) (188) (984) (1,055)
Realized gain on
investments..... (3,158) (235) (1,534)
Capital Paid in. (202)
------- -------- ------- ------- ------- -------- -------- --------
Decrease in net
assets resulting
from
distributions... (1,614) (3,446) (152) (3,317) (299) (423) (984) (2,791)
Capital
Contribution.... 250
Trust Share
Transactions
Proceeds from
shares sold..... 16,265 26,167 21,236 33,708 20,288 29,765 52,720 86,808
Distributions
reinvested...... 1,614 3,446 152 3,317 299 423 984 2,791
Payment for
shares redeemed. (5,924) (37,494) (3,315) (5,629) (6,566) (16,685) (8,291) (13,443)
------- -------- ------- ------- ------- -------- -------- --------
Increase/(decrease)
from Trust share
transactions.... 11,955 (7,881) 18,073 31,396 14,021 13,503 45,413 76,156
------- -------- ------- ------- ------- -------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 11,886 (7,556) 19,789 32,720 18,538 12,733 65,205 86,740
NET ASSETS
Beginning of
Period.......... 51,120 58,676 43,261 10,541 30,631 17,898 101,390 14,650
------- -------- ------- ------- ------- -------- -------- --------
End of Period... $63,006 $ 51,120 $63,050 $43,261 $49,169 $ 30,631 $166,595 $101,390
======= ======== ======= ======= ======= ======== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 1,605 2,595 1,645 2,708 1,730 2,704 3,362 6,622
Reinvested...... 160 343 12 269 25 39 61 201
Redeemed........ (585) (3,708) (257) (471) (557) (1,550) (527) (1,009)
------- -------- ------- ------- ------- -------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 1,180 (770) 1,400 2,506 1,198 1,193 2,896 5,814
======= ======== ======= ======= ======= ======== ======== ========
<CAPTION>
High Yield
Bond Strategic Bond
-------------- -------------------------
Unaudited Unaudited
Period from Six-Month
May 1, 1998(*) Period Ended Year Ended
to June 30, June 30, December 31,
1998 1998 1997
-------------- ------------ ------------
<S> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 119 $ 917 $ 1,100
Net realized
gain/(loss) on
sales of
investments..... 3 636 373
Change in net
unrealized
appreciation
(depreciation)
of investments.. (95) (50) 169
Foreign currency
translation..... 0 (97) 119
-------------- ------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 27 1,406 1,761
Distributions to
Shareholders
From:
Net investment
income.......... (119) (730) (1,222)
Realized gain on
investments..... (373)
Capital Paid in. (94)
-------------- ------------ ------------
Decrease in net
assets resulting
from
distributions... (119) (730) (1,689)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 10,145 17,328 21,531
Distributions
reinvested...... 119 730 1,689
Payment for
shares redeemed. (20) (3,088) (7,552)
-------------- ------------ ------------
Increase/(decrease)
from Trust share
transactions.... 10,244 14,970 15,668
-------------- ------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 10,152 15,646 15,740
NET ASSETS
Beginning of
Period.......... 0 28,647 12,907
-------------- ------------ ------------
End of Period... $10,152 $44,293 $28,647
============== ============ ============
Analysis of Trust
Share
Transactions:
Sold............ 1,014 2,099 2,099
Reinvested...... 12 165 165
Redeemed........ (2) (738) (738)
-------------- ------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 1,024 1,526 1,526
============== ============ ============
</TABLE>
See notes to financial statements.
(*) Commencement of operations.
34
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions 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
Unaudited Period
Ended June 30,
1998............ $20.82 $0.07 $4.69 $4.76 $(0.07) $-- $-- $(0.07) $25.51
Year Ended
December 31,
1997............ 17.49 0.17 5.21 5.38 (0.17) (1.88) -- (2.05) 20.82
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
- ---------------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Unaudited Period
Ended June 30,
1998............ 9.95 0.35 0.07 0.42 (0.35) -- -- (0.35) 10.02
Year Ended
December 31,
1997............ 9.77 0.71 0.24 0.95 (0.71) (0.06) -- (0.77) 9.95
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
- ---------------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Unaudited Period
from May 1, to
June 30,
1998(c)......... 10.00 0.01 (2.05) (2.04) -- -- -- -- 7.96
- ---------------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Unaudited Period
Ended June 30,
1998............ 15.20 0.15 2.47 2.62 (0.15) -- -- (0.15) 17.67
Year Ended
December 31,
1997............ 16.83 0.15 (0.97) (0.84) (0.13) (0.66) -- (0.79) 15.20
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
- ---------------------------------------------------------------------------------------------------------------------------------
Global Equity
Unaudited Period
from May 1, to
June 30,
1998(c)......... 10.00 0.04 (0.05) (0.01) (0.04) -- -- (0.04) 9.95
- ---------------------------------------------------------------------------------------------------------------------------------
<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
Unaudited Period
Ended June 30,
1998............ 38,021 22.88%(e) $970,061 0.42%(d) 0.56%(d) 30.33%(e) $0.02
Year Ended
December 31,
1997............ 36,236 30.89% 754,398 0.44% 0.86% 83.82% 0.05
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%
- --------------------------------------------------------------------------------------------------------------
Sovereign Bond
Unaudited Period
Ended June 30,
1998............ 84,361 4.26%(e) 845,173 0.28%(d) 6.95%(d) 0.00%(e) --
Year Ended
December 31,
1997............ 80,789 10.11% 803,770 0.31% 7.18% 138.29% --
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% --
- --------------------------------------------------------------------------------------------------------------
Emerging Markets
Unaudited Period
from May 1, to
June 30,
1998(c)......... 1,027 (20.40%)(e) 8,173 1.55%(d)(i) 0.41%(d) 23.77%(e) 0.00(f)
- --------------------------------------------------------------------------------------------------------------
International
Equity Index
Unaudited Period
Ended June 30,
1998............ 10,079 17.21%(e) 178,058 0.43%(d) 2.35%(d) 138.66%(e) 0.00(f)
Year Ended
December 31,
1997............ 10,024 5.03% 152,359 0.79% 0.78% 83.13% 0.02
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% --
- --------------------------------------------------------------------------------------------------------------
Global Equity
Unaudited Period
from May 1, to
June 30,
1998(c)......... 1,508 (0.06%)(e) 15,008 1.15%(d)(w) (0.13%)(d) 23.77%(e) 0.05
- --------------------------------------------------------------------------------------------------------------
</TABLE>
35
<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 Growth
Unaudited Period
Ended June 30,
1998............ $11.34 $(0.03) $1.03 $1.00 $-- $-- $-- $-- $12.34
Year Ended
December 31,
1997............ 9.93 (0.02) 1.44 1.42 -- -- (0.01) (0.01) 11.34
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
Unaudited Period
Ended June 30,
1998............ 10.11 0.19 0.70 0.89 (0.19) -- -- (0.19) 10.81
Year Ended
December 31,
1997............ 10.39 0.33 (0.05) 0.28 (0.33) (0.22) (0.01) (0.56) 10.11
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
- ---------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period
Ended June 30,
1998............ 11.93 (0.03) 2.25 2.22 -- -- -- -- 14.15
Year Ended
December 31,
1997............ 10.22 (0.02) 1.73 1.71 -- -- -- -- 11.93
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
Unaudited Period
Ended June 30,
1998............ 13.57 0.14 0.71 0.85 (0.14) -- -- (0.14) 14.28
Year Ended
December 31,
1997............ 11.09 0.29 2.84 3.13 (0.29) (0.36) -- (0.65) 13.57
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
- ---------------------------------------------------------------------------------------------------------------------------------
<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 Growth
Unaudited Period
Ended June 30,
1998............ 4,940 8.76%(e) $60,954 1.00%(k)(d) (0.63%)(d) 52.81%(e) $0.04
Year Ended
December 31,
1997............ 4,298 14.26% 48,761 1.00%(k) (0.28%) 86.23% 0.07
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
Unaudited Period
Ended June 30,
1998............ 2,577 8.76%(e) 27,854 1.10%(l)(d) 3.48%(d) 31.25%(e) 0.01
Year Ended
December 31,
1997............ 2,514 2.65% 25.420 1.10%(l) 3.18% 81.04% 0.03
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
- ------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period
Ended June 30,
1998............ 4,523 12.62%(e) 63,982 1.11%(m)(d) (0.67%)(d) 70.44%(e) 0.02
Year Ended
December 31,
1997............ 3,374 16.66% 40,235 1.10%(m) (0.26%) 124.04% 0.03
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
Unaudited Period
Ended June 30,
1998............ 7,183 6.27%(e) 102,585 1.00%(n)(d) 1.98%(d) 9.64%(e) 0.02
Year Ended
December 31,
1997............ 5,399 28.56% 73,269 1.00%(n) 2.42% 19.21% 0.03
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
- ------------------------------------------------------------------------------------------------------------
</TABLE>
36
<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>
Money Market
Unaudited Period
Ended June 30,
1998............ $10.00 $0.26 $-- $0.26 $(0.26) $-- $-- $(0.26) $10.00
Year Ended
December 31,
1997............ 10.00 0.53 -- 0.53 (0.53) -- -- (0.53) 10.00
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
- ---------------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Unaudited Period
Ended June 30,
1998............ 13.87 0.03 $0.07 0.10 (0.03) -- -- (0.03) 13.94
Year Ended
December 31,
1997............ 11.35 0.05 3.59 3.64 (0.05) (1.07) -- (1.12) 13.87
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
- ---------------------------------------------------------------------------------------------------------------------------------
Diversified Mid Cap Growth
Unaudited Period
Ended June 30,
1998............ 15.39 -- 1.63 1.63 -- -- -- -- 17.02
Year Ended
December 31,
1997............ 16.52 0.01 0.56 0.57 (0.01) (1.69) -- (1.70) 15.39
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
1, 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>
Money Market
Unaudited Period
Ended June 30,
1998............ 27,095 2.68%(e) $270,948 0.31%(d) 5.33%(d) -- --
Year Ended
December 31,
1997............ 22,944 5.38% 229,443 0.33% 5.32% -- --
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% -- --
- -----------------------------------------------------------------------------------------------------------
Mid Cap Value
Unaudited Period
Ended June 30,
1998............ 7,118 0.71%(e) 99,215 1.05%(o)(d) 0.40%(d) 50.47%(e) 0.02
Year Ended
December 31,
1997............ 4,686 32.17% 64,973 1.05%(o) 0.53% 93.78% 0.06
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
- -----------------------------------------------------------------------------------------------------------
Diversified Mid Cap Growth
Unaudited Period
Ended June 30,
1998............ 12,989 10.62%(e) 221,043 0.86%(d) (0.03%)(d) 90.90%(e) 0.02
Year Ended
December 31,
1997............ 13,884 3.44% 213,612 0.85% 0.09% 331.19% 0.07
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
1, to December
31, 1994(c)..... 722 0.56%(e) 7,181 1.00%(d)(h) 1.51%(d) 26.54%(e) --
- -----------------------------------------------------------------------------------------------------------
</TABLE>
37
<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>
Bond Index
Unaudited Period
from May 1, to
June 30,
1998(c)......... $10.00 $0.10 $0.11 $0.21 $(0.10) $ -- $ -- $(0.10) $10.11
- ---------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Unaudited Period
from May 1, to
June 30,
1998(c)......... 10.00 0.01 (0.28) (0.28) -- -- -- -- 9.72
- ---------------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended June 30,
1998............ 15.91 0.37 (1.35) (0.98) (0.37) -- -- (0.37) 14.56
Year Ended
December 31,
1997............ 14.64 0.77 1.68 2.45 (0.71) (0.41) (0.06) (1.18) 15.91
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
- ---------------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended June 30,
1998............ 16.61 0.11 $3.09 3.20 (0.11) -- -- (0.11) 19.70
Year Ended
December 31,
1997............ 14.65 0.27 4.07 4.34 (0.27) (2.11) -- (2.38) 16.61
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
- ---------------------------------------------------------------------------------------------------------------------------------
<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>
Bond Index
Unaudited Period
from May 1, to
June 30,
1998(c)......... $2,534 $2.11%(e) $25,604 0.40%(d)(x) 6.22%(d) 0%(e) --
- -----------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Unaudited Period
from May 1, to
June 30,
1998(c)......... 516 (2.79%)(e) 5,012 1.05%(d)(y) 0.06%(d) 8.19%(e) .05
- -----------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended June 30,
1998............ 12,979 (6.17%)(e) $188,982 0.71%(d) 4.96%(d) 12.93%(e) 0.01
Year Ended
December 31,
1997............ 12,830 17.22% 204,131 0.69% 5.12% 20.04% 0.05
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%
- -----------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended June 30,
1998............ 171,341 19.36%(e) 3,375,267 0.28%(d) 1.25%(d) 31.91%(e) 0.02
Year Ended
December 31,
1997............ 167,773 29.79% 2,785,964 0.28% 1.61% 74.56% 0.05
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%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
38
<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>
Managed
Unaudited Period
Ended
June 30, 1998... $14.35 $0.24 $1.63 $1.87 $(0.24) $-- $-- $(0.24) $15.98
Year Ended
December 31,
1997............ 13.35 0.59 1.86 2.45 (0.59) (0.78) (0.08) (1.45) 14.35
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
- ----------------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended
June 30, 1998... 10.08 0.28 0.00 0.28 (0.28) -- -- (0.28) 10.08
Year Ended
December 31,
1997............ 10.05 0.59 0.03 0.62 (0.59) -- -- (0.59) 10.08
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- (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
- ----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended
June 30, 1998... 12.40 0.03 0.50 0.53 (0.03) -- -- (0.03) 12.90
Year Ended
December 31,
1997............ 10.73 0.08 2.66 2.74 (0.08) (0.99) -- (1.07) 12.40
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
Unaudited Period
Ended
June 30, 1998... 10.63 0.08 1.42 1.50 (0.08) -- -- (0.08) 12.05
Year Ended
December 31,
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- (0.18) 10.63
Period from May
1, to December
31, 1996(c)..... 10.00 0.07 0.60 0.67 (0.07) -- -- (0.07) 10.60
- ----------------------------------------------------------------------------------------------------------------------------------
<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>
Managed
Unaudited Period
Ended
June 30, 1998... 196,939 13.08%(e) $3,146,686 0.36%(d) 3.11%(d) 0.00%(e) $0.02
Year Ended
December 31,
1997............ 195,139 18.72% 2,800,127 0.37% 4.18% 200.71% 0.05
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%
- ----------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended
June 30, 1998... 6,250 2.80%(e) 63,006 0.52%(j)(d) 5.90%(d) 144.29%(e) --
Year Ended
December 31,
1997............ 5,070 6.41% 51,120 0.57% 5.67% 108.29% --
1996............ 5,840 3.61% 58,676 0.75%(j) 5.66% 20.29% --
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)
- ----------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended
June 30, 1998... 4,888 4.29%(e) 63,050 1.04%(p)(d) 0.56%(d) 51.78%(e) 0.02
Year Ended
December 31,
1997............ 3,488 25.57% 43,261 1.05%(p) 0.68% 126.10% 0.06
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
Unaudited Period
Ended
June 30, 1998... 4,080 14.12%(e) 49,169 1.17%(q)(d) 1.51%(d) 10.55%(e) 0.02
Year Ended
December 31,
1997............ 2,882 1.95% 30,631 1.22%(q) 0.65% 21.09% 0.03
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
- ----------------------------------------------------------------------------------------------------------
</TABLE>
39
<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>
Equity Index
Unaudited Period
Ended June 30,
1998............ $14.21 $0.12 $2.44 $2.56 $(0.11) $-- $(0.05) $(0.16) $16.61
Year Ended
December 31,
1997............ 11.10 0.24 3.41 3.65 (0.24) (0.25) (0.05) (0.54) 14.21
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
- ---------------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Unaudited Period
from May 1, to
June 30,
1998(c)......... 10.00 0.12 (.09) .03 (.12) -- -- (0.12) 9.91
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Bond
Unaudited Period
Ended June 30,
1998............ 10.24 0.19 0.21 0.40 (0.19) -- -- (0.19) 10.45
Year Ended
December 31,
1997............ 10.16 0.59 0.30 0.89 (0.61) (0.15) (0.05) (0.81) 10.24
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>
Equity Index
Unaudited Period
Ended June 30,
1998............ 10,030 17.67%(e) $166,595 0.00%(r)(d) 1.60%(d) 18.25%(e) $0.01
Year Ended
December 31,
1997............ 7,134 32.79%(v) 101,390 0.00%(r) 1.97% 64.56% 0.02
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
- -------------------------------------------------------------------------------------------------------------
High Yield Bond
Unaudited Period
from May 1, to
June 30,
1998(c)......... 1,024 .28%(e) 10,152 .90%(d)(z) 7.10%(d) 12.09%(e) --
- -------------------------------------------------------------------------------------------------------------
Strategic Bond
Unaudited Period
Ended June 30,
1998............ 4,237 3.98%(e) 44,293 0.96%(s)(d) 5.03% 83.48%(e) --
Year Ended
December 31,
1997............ 2,797 9.05% 28,647 1.00%(s) 5.80% 69.38% --
Period from May
1, to December
31, 1996(c)..... 1,271 3.71%(e) 12,907 1.00%(d)(s) 6.05%(d) 171.39%(e) --
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(a) The amount shown at this caption for each share outstanding throughout the
year may not accord with the change in the aggregate gains and losses in
the portfolio securities for the year because of the timing of the
purchases and withdrawals of the shares in relation to the fluctuation
market values of the portfolio.
(b) The performance of the portfolios shown on this page does not reflect
expenses and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in
your product's prospectus.
(c) Commencement of investment operations.
(d) Annualized.
(e) Not annualized.
(f) Amount is less than a penny per share.
(g) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 87% and 87% for the years
ended December 31, 1995 and 1994, 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, 1994, respectively.
(i) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 3.87% for the period ending
June 30, 1998.
(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 years ended December 31, 1996, 1995, and 1994, respectively.
(k) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.05% for the period ended
June 30, 1998 and, 1.12%, and 1.55%, for the years ended December 31,
1997, and 1996, respectively.
40
<PAGE>
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.70% for the period ended
June 30, 1998, and 1.56%, and 1.44% for the years ended December 31, 1997,
and 1996, respectively.
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.20% for the period ended
June 30, 1998, and 1.42%, and 2.34%, for the years ended December 31,
1997, and 1996, respectively.
(n) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.06%, and 1.89%, for the
years ended December 31, 1997, and 1996, respectively.
(o) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.14%, and 2.15%, for the
years ended December 31, 1997, and 1996, respectively.
(p) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.09% for the period ended
June 30, 1998, and 1.30%, and 2.06%, for the years ended December 31,
1997, and 1996, respectively.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.57%, and 2.76%, for the
years ended December 31, 1997, and 1996, respectively.
(r) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .65%, and 1.61%, for the years
ended December 31, 1997, and 1996, respectively.
(s) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.32%, and 1.57%, for the
years ended December 31, 1997, and 1996, respectively.
(t) Average Commission rate is calculated for funds with fiscal year beginning
on or after September 1, 1995.
(u) The Total Return includes the effect of the capital contribution of $.06
per share. The total Investment Return without the capital contribution
would have been 13.59%.
(v) The Total Return includes the effect of the capital contribution of $.04
per share. The total Investment Return without the capital contribution
would have been 32.47%.
(w) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.54% for the period ending
June 30, 1998.
(x) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 0.76% for the period ending
June 30, 1998.
(y) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 4.39% for the period ending
June 30, 1998.
(z) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.25% for the period ending
June 30, 1998.
41
<PAGE>
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.8%
United Technologies Corp. ................. 293,000 $ 27,102
Auto and Truck Parts - 1.1%
Ford Motor Co. ............................ 134,100 7,912
Lear Corp. * .............................. 50,000 2,565
--------
10,477
Banks - 1.5%
BankAmerica Corp. ......................... 21,300 1,841
Bankers Trust New York Corp. .............. 10,300 1,195
Comerica, Inc. ............................ 100,000 6,625
First Chicago NBD Corp. * ................. 30,000 2,659
State Street Corp. ........................ 27,000 1,877
--------
14,197
Brokerage and Investment Management - 1.3%
Morgan Stanley, Dean Witter,
Discover & Co. ........................... 138,400 12,647
Chemicals - 0.4%
Air Products & Chemicals, Inc. ............ 56,600 2,264
Millenium Chemicals, Inc. ................. 61,000 2,066
--------
4,330
Commercial Services - 0.4%
Cognizant Corp. ........................... 63,100 3,975
Computer Equipment - 4.9%
Hewlett-Packard Co. ....................... 96,500 5,778
Intel Corp. ............................... 291,300 21,593
Xerox Corp. ............................... 193,900 19,705
--------
47,076
Computer Software and Services - 8.9%
Autodesk, Inc. ............................ 152,900 5,906
Cadence Design Systems, Inc. * ............ 233,800 7,306
Computer Associates International, Inc. ... 192,050 10,671
Electronic Data Systems Corp. ............. 50,000 2,000
Microsoft Corp. ........................... 358,300 38,831
Oracle Corp. * ............................ 168,700 4,144
Parametric Technology Co. * ............... 152,000 4,123
Peoplesoft, Inc. .......................... 150,000 7,050
Sun Microsystems, Inc. * .................. 143,900 6,250
--------
86,281
Consumer - Miscellaneous - 0.7%
Avery Dennison Corp. ...................... 126,200 6,783
Cosmetics and Personal Care Products - 3.8%
Avon Products, Inc. ....................... 69,800 5,409
Dial Corp. ................................ 105,700 2,742
Procter & Gamble Co. ...................... 289,400 26,353
Revlon, Inc. * ............................ 36,000 1,850
--------
36,354
Diversified Operations - 7.0%
General Electric Co. ...................... 543,300 49,440
Reynolds & Reynolds Co. ................... 120,000 2,183
Textron, Inc. ............................. 68,800 4,932
Tyco International, Ltd. .................. 178,700 11,258
--------
67,813
Electronic Products and Services - 5.5%
Analog Devices, Inc. * .................... 1
Cisco Systems, Inc. * ..................... 186,600 17,179
Linear Technology Corp. * ................. 110,700 6,677
Maxim Integrated Products, Inc. * ......... 143,400 4,544
Pitney Bowes, Inc. ........................ 454,000 21,849
Tektronix, Inc. ........................... 76,000 2,688
--------
52,937
Financial Services - 1.0%
Associates First Capital Corp. - Cl. A .... 50,045 3,847
Norwest Corp. ............................. 150,400 5,621
--------
9,468
Food, Beverage and Tobacco - 6.2%
ConAgra, Inc. ............................. 30,500 967
PepsiCo, Inc. ............................. 625,700 25,771
Philip Morris Cos., Inc. .................. 333,000 13,112
Quaker Oats Co. ........................... 286,200 15,723
UST, Inc. ................................. 169,600 4,579
--------
60,152
Government Agencies - 1.9%
Federal National Mortgage Assoc............ 310,100 18,839
Health Care Products - 17.8%
Abbott Laboratories ....................... 253,200 10,349
Allegiance Corp. .......................... 125,400 6,427
Becton, Dickinson & Co. ................... 41,400 3,214
Bristol-Myers Squibb Co. .................. 232,200 26,688
Cardinal Health, Inc. ..................... 187,700 17,597
Guidant Corp. ............................. 200,000 14,262
Johnson & Johnson ......................... 336,200 24,795
McKesson Corp. ............................ 28,600 2,324
Merck & Co., Inc. ......................... 157,500 21,066
Mylan Laboratories, Inc. .................. 185,500 5,577
Pfizer, Inc. .............................. 208,800 22,694
Schering-Plough Corp. ..................... 182,200 16,694
--------
172,687
Health Care Services - 2.0%
Health Management Associates, Inc. -
Cl. A * .................................. 200,000 6,688
HEALTHSOUTH Corp. * ....................... 464,500 12,396
United Healthcare Corp. ................... 30,000 1,905
--------
20,989
Housing - 0.2%
Clayton Homes, Inc. * ..................... 99,500 1,890
42
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- ------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - 8.5%
Allstate Corp. ............................ 130,900 $ 11,986
American International Group, Inc. ........ 85,000 12,410
Equitable Cos., Inc. ...................... 57,400 4,301
General Re Corp. .......................... 5,700 1,445
Hartford Financial Services Group, Inc. ... 72,300 8,269
Marsh & McLennan Cos., Inc. ............... 129,600 7,833
Mid Ocean, Ltd. ........................... 44,000 3,454
PartnerRe, Ltd. * ......................... 200,000 10,200
Travelers Group, Inc. ..................... 377,100 22,862
--------
82,760
Leisure and Recreation - 0.4%
Promus Hotel Corp. * ...................... 110,907 4,270
Metals and Mining - 0.2%
Precision Castparts Corp. ................. 38,600 2,060
Oil - Equipment and Services - 0.8%
Baker Hughes, Inc. ........................ 87,500 3,024
Cooper Cameron Corp. * .................... 41,400 2,112
Dresser Industries, Inc. .................. 60,400 2,661
--------
7,797
Oil and Natural Gas Exploration and
Production - 2.3%
Anadarko Petroleum Corp. .................. 46,000 3,091
British Petroleum Co. plc - ADR ........... 55,700 4,915
El Paso Natural Gas Co. ................... 89,000 3,404
Phillips Petroleum Co. .................... 189,600 9,136
Rowan Cos., Inc. * ........................ 93,000 1,808
--------
22,354
Paper and Forest Products - 0.2%
Fort James Corp. .......................... 42,200 1,878
Personal and Commercial Lending - 0.7%
MBNA Corp. ................................ 192,450 6,351
Pollution Control - 1.4%
USA Waste Services, Inc. * ................ 281,800 13,914
Retail - Department Stores - 7.4%
Costco Cos., Inc. * ....................... 44,200 2,787
Dayton-Hudson Corp. ....................... 144,200 6,994
Home Depot, Inc. .......................... 409,300 33,997
Lowe's Cos., Inc. ......................... 194,000 7,869
Staples, Inc. * ........................... 428,400 12,397
TJX Cos., Inc. ............................ 320,400 7,730
--------
71,774
Shoe and Apparel Manufacturing - 2.8%
Jones Apparel Group, Inc. * ............... 218,400 7,985
Liz Claiborne, Inc. ....................... 61,800 3,229
Tommy Hilfiger Corp. * .................... 172,600 10,787
Warnaco Group, Inc. - Cl. A ............... 116,000 4,923
--------
26,924
Telecommunications Equipment - 4.6%
Lucent Technologies, Inc. ................. 536,002 44,589
Telephone - 0.7%
AT&T Corp. ................................ 118,400 6,764
Transportation Services - 2.0%
Burlington Northern Santa Fe .............. 75,400 7,404
Northwest Airlines Corp. - Cl. A * ........ 80,500 3,104
Southwest Airlines Co. .................... 103,500 3,066
UAL Corp. ................................. 80,500 6,279
--------
19,853
--------
TOTAL COMMON STOCK- 99.4% 964,285
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.5%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ....................... $ 4,919 4,919
-------- --------
TOTAL INVESTMENTS- 99.9% 969,204
Cash and Receivables, less payables- 0.1% 857
-------- --------
NET ASSETS- 100.0% $970,061
======== ========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statement.
43
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.3%
Jet Equipment Trust
10.91% due 08/15/14 .................... $ 2,100 $ 2,753
Automobile - 1.1%
Ford Motor Co. - Bonds - Debs
6.62% due 02/15/28 ..................... 890 889
Ford Motor Co. - Debs
7.12% due 11/15/25 ..................... 1,780 1,895
9.00% due 09/15/01 ..................... 2,000 2,165
General Motors Corp. - Debs
9.62% due 12/01/00 ..................... 4,000 4,327
--------
9,276
Banks - 4.6%
ABN-Amro Bank NV (Chicago) - Debs
7.25% due 05/31/05 ..................... 2,400 2,534
Banc One Corp. - Sub. Debs
7.62% due 10/15/26 ..................... 1,740 1,946
BankBoston NA - Sub. Notes
6.37% due 03/25/08 ..................... 2,490 2,496
Citibank Credit Card Master Trust I -
Ser. 1997-7 A
6.35% due 08/15/02 ..................... 2,360 2,390
Interamerican Development Bank - Debs
8.50% due 03/15/11 ..................... 6,000 7,414
International Bank of Reconstruction &
Development - Debs
8.25% due 09/01/16 ..................... 2,150 2,700
Landeskreditbank Baden Wuerttemberg -
Sub. Notes
7.62% due 02/01/23 ..................... 3,150 3,699
National Westminister Bank, NY - Sub.
Notes
9.45% due 05/01/01 ..................... 5,000 5,456
NB Capital Trust IV
8.25% due 04/15/27 ..................... 3,600 4,037
RBSG Capital Corp. - Notes
10.12% due 03/01/04 .................... 5,000 5,931
--------
38,603
Brokerage and Investment Management - 1.5%
DR Investments - Sr. Notes 144A(a)
7.45% due 05/15/07 ..................... 1,800 1,922
Merrill Lynch & Co., Inc. - Sr. Notes
7.75% due 03/01/99 ..................... 3,000 3,035
Morgan Stanley Group, Inc. - Notes
8.87% due 10/15/01 ..................... 3,000 3,248
Nomura Asset Securities Corp. -
Ser. 1998-D6 A1A
6.28% due 03/17/28 ..................... 2,402 2,422
Salomon Brothers Mortgage Securities
VII
6.75% due 07/25/24 ..................... 1,890 1,921
--------
12,548
Coal - 0.1%
P&L Coal Holdings Corp. -
Sr. Sub Notes 144A(a)
9.62% due 05/15/08 ..................... 900 925
Commercial Services - 0.7%
Harvard University - Debs - Gen'l
Oblig
8.12% due 04/15/07 ..................... 5,000 5,771
Construction - 0.2%
MDC Holdings, Inc. - Sr. Notes
8.37% due 02/01/08 ..................... 1,430 1,430
Consumer - Miscellaneous - 0.4%
Loewen Group International, Inc.
8.25% due 10/15/03 ..................... 3,135 3,213
Diversified Operations - 0.6%
Norsk Hydro A/S
7.50% due 10/01/16 ..................... 2,375 2,594
Tenneco, Inc. - Debs
10.07% due 02/01/01 .................... 2,000 2,184
--------
4,778
Electric Power - 8.7%
AES Corp. - Sr. Sub. Notes
10.25% due 07/15/06 .................... 3,113 3,385
AES Corp. - Sub. Notes
8.37% due 08/15/07 ..................... 1,925 1,944
Beaver Valley Funding Corp. - Debs
9.00% due 06/01/17 ..................... 2,825 3,178
BVPS II Funding Corp.
8.89% due 06/01/17 ..................... 2,464 2,849
Calpine Corp. - Sr. Notes
8.75% due 07/15/07 ..................... 885 909
10.50% due 05/15/06 .................... 1,920 2,102
Chugach Electric Assoc., Inc. - 1st
Mtge
8.08% due 03/15/02 ..................... 2,230 2,318
Cleveland Electric Illuminating Co. -
1st Mtge
9.50% due 05/15/05 ..................... 4,725 5,198
CMS Energy Corp. - Sr. Notes
8.12% due 05/15/02 ..................... 2,650 2,721
Connecticut Light & Power Co. -
Notes 144A(a)
8.59% due 06/04/03 ..................... 1,310 1,321
Enersis SA - Notes
7.40% due 12/01/16 ..................... 2,625 2,672
First PV Funding Corp.
10.15% due 01/15/16 .................... 1,228 1,304
10.30% due 01/15/14 .................... 616 652
Long Island Lighting Co. - Debs
8.90% due 07/15/19 ..................... 1,740 1,845
9.00% due 11/01/22 ..................... 1,760 2,011
Midland Cogeneration Venture - Debs
10.33% due 07/23/02 .................... 743 804
10.33% due 07/23/02 .................... 3,065 3,316
44
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Electric Power - Continued
Monterrey Power SA DE CV - 144A(a)
9.62% due 11/15/09 ................... $ 1,415 $ 1,323
New Century Energies Co. - 1st Mtge
9.87% due 07/01/20 ................... 4,500 4,930
6.87% due 12/01/99 ................... 3,500 3,540
Niagara Mohawk Power Corp.
7.75% due 10/01/08 ................... 1,670 1,710
North Atlantic Energy Corp. - 1st Mtge
9.05% due 06/01/02 ................... 2,506 2,580
Puget Sound Energy Capital Trust
8.23% due 06/01/27 ................... 1,705 1,773
System Energy Resources, Inc. - 1st
Mtge
7.71% due 08/01/01 ................... 2,590 2,685
Texas New Mexico Power Co. - 1st Mtge
9.25% due 09/15/00 ................... 8,000 8,450
UtiliCorp United, Inc. - Sr. Notes
8.20% due 01/15/07 ................... 5,000 5,523
Waterford 3 Funding - Entergy - Bonds
8.09% due 01/02/17 ................... 2,768 2,899
-------
73,942
Electronic Products and Services - 0.2%
Zilog, Inc. - Sr. Notes 144A(a)
9.50% due 03/01/05 ................... 1,930 1,409
Energy - Alternative Source - 0.3%
CalEnergy Co., Inc. - Sr. Notes
9.50% due 09/15/06 ................... 2,320 2,500
Financial Services - 10.0%
Abbey National First Capital - Sr. Sub.
Notes
8.20% due 10/15/04 ................... 4,000 4,414
American Express Credit Corp. - Debs
8.62% due 05/15/22 ................... 6,000 6,559
8.50% due 06/15/99 ................... 6,000 6,139
Bank of New York Institution Capital -
144A(a)
7.78% due 12/01/26 ................... 2,515 2,719
Barclays North America Capital Corp. -
Debs
9.75% due 05/15/21 ................... 4,650 5,245
Commercial Credit Group, Inc. - Notes
6.00% due 04/15/00 ................... 7,000 7,001
10.00% due 05/01/99 .................. 5,000 5,155
Conseco, Inc. - Notes
6.80% due 06/15/05 ................... 2,370 2,374
Constitution Capital Trust I
9.15% due 04/15/27 ................... 1,815 2,026
Contifinancial Corp. - Sr. Notes
7.50% due 03/15/02 ................... 2,320 2,324
Fairfax Financial Holdings - Notes
8.30% due 04/15/26 ................... 2,960 3,316
Fleet Financial Group - Sub. Notes
6.37% due 05/15/08 ................... 2,325 2,324
General Motors Acceptance Corp. - Notes
5.85% due 04/06/00 ................... 2,360 2,358
Groupe Videotron ltee - Sr. Notes
10.62% due 02/15/05 .................. 2,585 2,839
Liberty Property, Ltd.
6.60% due 06/05/02 ................... 1,675 1,677
Structured Assets Securities Corp. -
Ser. 1993-C AIB
6.60% due 12/25/24 ................... 3,170 3,174
Sun Canada Financial Co.
6.62% due 12/15/07 ................... 3,345 3,464
Texaco Capital, Inc. - Debs
8.62% due 06/30/10 ................... 10,000 12,035
U.S. West Capital Funding, Inc.
6.87% due 07/15/28 ................... 1,800 1,800
United Companies Financial Corp. -
Notes
7.70% due 01/15/04 ................... 2,535 2,528
URC Holdings Corp.
7.87% due 06/30/06 ................... 2,780 2,998
Vicap SA - 144A(a)
11.37% due 05/15/07 .................. 1,605 1,719
-------
84,188
Food, Beverage and Tobacco - 0.7%
RJR Nabisco, Inc. - Notes
7.62% due 09/15/03 ................... 2,120 2,107
8.62% due 12/01/02 ................... 1,660 1,720
Southern Foods Group -
Sr. Sub. Notes 144A(a)
9.87% due 09/01/07 ................... 2,141 2,232
-------
6,059
Foreign - 1.4%
Hydro-Quebec - Debs
9.40% due 02/01/21 ................... 2,100 2,786
Hydro-Quebec - Debs. Ser. FU
11.75% due 02/01/12 .................. 5,000 7,358
Hydro-Quebec - Debs. Ser. IF
7.37% due 02/01/03 ................... 1,000 1,049
Satelites Mexicanos SA - Sr. Notes
144A(a)
10.12% due 11/01/04 .................. 770 750
-------
11,943
Foreign Governmental - 2.0%
Nova Scotia
8.75% due 04/01/22 .................... 3,000 3,862
Province of Manitoba
9.00% due 12/15/00 .................... 3,000 3,207
9.25% due 04/01/20 .................... 2,000 2,705
Province of Saskatchewan
9.37% due 12/15/20 .................... 1,500 2,035
Republic of Brazil - Bonds
9.37% due 04/07/08 .................... 1,830 1,641
Republic of Panama - Notes 144A(a)
7.87% due 02/13/02 .................... 3,540 3,469
-------
16,919
45
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Health Care Products - 0.6%
Fresenius Medical Capital Trust II -
144A(a)
7.875% due 02/01/08 .................. $ 1,740 $ 1,709
Sola International, Inc. - Notes
6.87% due 03/15/08 ................... 1,970 1,968
Watson Pharmaceuticals, Inc. - Sr
Notes
7.12% due 05/15/08 ................... 1,645 1,668
-------
5,345
Health Care Services - 1.4%
Global Health Sciences, Inc. -
Sr. Notes 144A(a)
11.00% due 05/01/08 .................. 1,365 1,348
Integrated Health Services, Inc. -
Sr. Sub. Notes
9.25% due 01/15/08 ................... 2,370 2,453
Pharmerica, Inc. Sr. Sub Notes
8.37% due 04/01/08 ................... 830 832
Phsician Sales & Service, Inc.
8.50% due 10/01/07 ................... 1,305 1,346
Quest Diagnostic, Inc.
10.75% due 12/15/06 .................. 1,537 1,691
Tenet Healthcare Corp. - Sr. Sub. Notes
8.62% due 01/15/07 ................... 1,930 1,990
8.12% due 12/01/08 ................... 1,115 1,116
Vencor, Inc. - Sr. Sub. Notes 144A(a)
9.87% due 05/01/05 ................... 985 969
-------
11,745
Insurance - 2.6%
Equitable Life Assurance Society USA -
144A(a)
6.95% due 12/01/05 ................... 2,750 2,852
Liberty Mutual Insurance Co. - Notes
144A(a)
7.87% due 10/15/26 ................... 1,835 2,056
8.20% due 05/04/07 ................... 4,630 5,165
Mass. Mutual Life Insurance Co. -
Notes 144A(a)
7.62% due 11/15/23 ................... 4,090 4,630
NAC Re Corp. - Notes
8.00% due 06/15/99 ................... 1,560 1,585
New York Life Insurance Co.
7.50% due 12/15/23 ................... 5,970 6,136
-------
22,424
Leisure and Recreation - 0.6%
Sun International Hotels, Ltd.
8.62% due 12/15/07 ................... 1,178 1,216
9.00% due 03/15/07 ................... 1,100 1,155
Trump Holdings & Funding - Sr. Notes
15.50% due 06/15/05 .................. 2,325 2,616
-------
4,987
Machinery - 0.1%
Enterprises Shipholding Corp. - 144A(a)
8.87% due 05/01/08 ................... 1,295 1,269
Media - Publishing - 0.1%
Garden State Newspapers, Inc. - Sr. Sub
Notes
8.75% due 10/01/09 ................... 1,277 1,296
Media - TV / Radio - 4.1%
Adelphia Communications Corp.
8.12% due 07/15/03 ................... 1,330 1,323
Adelphia Communications Corp. - Sr
Notes
9.25% due 10/01/02 ................... 2,460 2,552
Capstar Broadcasting, Inc. - Sr. Sub.
Notes
10.75% due 05/15/06 .................. 2,080 2,298
CIA Radiocommunicaciones Moviles -
Bonds 144A(a)
9.25% due 05/08/08 ................... 364 349
Clear Channel Communications, Inc. -
Debs
7.25% due 10/15/27 ................... 3,345 3,446
Comcast Corp. - Sr. Sub. Debs
10.62% due 07/15/12 .................. 2,625 3,347
Cumulus Media, Inc. - Sr. Sub. Notes
10.37% due 07/01/08 .................. 980 994
News America Holdings, Inc. - Debs
8.25% due 08/10/18 ................... 2,531 2,867
OpTel, Inc. - 144A(a)
11.50% due 07/01/08 .................. 920 920
Rogers Cablesystems - Notes
9.62% due 08/01/02 ................... 1,385 1,479
10.00% due 03/15/05 .................. 3,030 3,363
TCI Communications, Inc. - Debs
8.75% due 08/01/15 ................... 3,071 3,753
Time Warner, Inc. - Debs
9.12% due 01/15/13 ................... 2,493 3,068
TKR Cable, Inc. - Debs
10.50% due 10/30/07 .................. 4,132 4,526
-------
34,285
Metal Product and Fabrication - 0.2%
Yanacocha Receivables
8.40% due 06/15/05 ................... 1,805 1,757
Municipals - 0.4%
New Hampshire State -
Taxable Pease Dev. Auth
7.70% due 07/01/12 ................... 3,000 3,272
Natural Gas Distribution - 1.8%
Camuzzi Gas - Bonds
9.25% due 12/15/01 ................... 1,911 1,911
Michigan Consolidated Gas Co. - 1st
Mtge.
5.75% due 05/01/01 .................... 10,000 9,935
Williams Cos., Inc. - Notes
7.50% due 09/15/99 .................... 3,000 3,047
-------
14,893
46
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Oil - Equipment and Services - 0.5%
Humpuss Funding Corp. - 144A(a)
7.72% due 12/15/09 ................... $ 2,191 $ 1,600
Petroleum-Geo Services ASA
6.62% due 03/30/08 ................... 2,620 2,625
-------
4,225
Oil and Natural Gas Exploration and
Production - 1.9%
Coastal Corp. SA - Notes
8.75% due 05/15/99 ................... 7,250 7,410
Occidental Petroleum Corp. - Sr. Debs.
10.12% due 09/15/09 .................. 3,000 3,849
Union Pacific Resources Group, Inc.
7.15% due 05/15/28 ................... 2,075 2,075
YPF Sociedad Anonima - Sr. Notes
7.25% due 03/15/03 ................... 2,690 2,614
-------
15,948
Paper and Forest Products - 0.6%
Fort James Corp. - Sr. Notes
6.50% due 09/15/02 ................... 2,120 2,141
Repap New Brunswick - Sr. Notes
10.62% due 04/15/05 .................. 915 924
S.D. Warren Co. - Sr. Sub. Notes
12.00% due 12/15/04 .................. 1,825 2,019
-------
5,084
Personal and Commercial Lending - 6.5%
CS First Boston Mortgage Securities
Corp. - Ser. 1998-C1 A1A
0.99% due 04/11/30 ................... 3,180 3,204
Deutsche Mortgage & Asset Receiving
Corp. - Ser. 1998-C1
6.86% due 03/15/08 ................... 1,910 1,960
EQCC Home Equity Loan Trust -
Ser. 1997-1 A7
7.12% due 05/15/28 ................... 8,000 8,153
First Plus Home Loan Trust - Ser
1997-1 A6
6.95% due 12/10/15 ................... 2,925 2,952
GMAC Commercial Mortgage Securities,
Inc.
6.56% due 11/15/07 ................... 3,385 3,468
Inc. - 1997-C1 A2
6.85% due 09/15/06 ................... 7,325 7,561
Household International - Notes
9.60% due 07/19/00 ................... 4,000 4,268
Midland Funding Corp. II - Debs
11.75% due 07/23/05 .................. 1,150 1,377
Money Store Home Equity Trust -
Ser. 1997-C1 DAF7
6.48% due 12/15/28 ................... 4,060 4,118
Residential Accredit Loans, Inc. -
Ser. 1997-QS4 A3
7.25% due 05/25/27 ................... 3,335 3,365
UCFC Home Equity Loan - Ser. 1996-A1 A5
6.50% due 04/15/16 ................... 7,652 7,703
UCFC Home Equity Loan - Ser. 1997-A1 A8
7.22% due 06/15/28 ................... 6,910 7,074
-------
55,383
Real Estate Investment Trust - 1.7%
American Health Prop., Inc. - Notes
7.50% due 01/15/07 ................... 1,350 1,406
Amresco Residential Securities - Mtge
Loan
6.51% due 08/25/27 ................... 7,885 7,928
IMC Home Equity Loan Trust -
Ser. 1998-1 A4
6.60% due 03/20/25 ................... 3,280 3,309
TriNet Corp. Realty Trust, Inc. - Notes
7.30% due 05/15/01 ................... 2,070 2,119
-------
14,762
Retail - Food - 0.6%
McDonald's Corp. - Debs
7.37% due 07/15/33 ................... 5,000 5,209
Shoe and Apparel Manufacturing - 1.0%
Tommy Hilfiger USA, Inc.
6.50% due 06/01/03 ................... 2,290 2,299
Tropical Sportswear International Corp.
- 144A(a)
11.00% due 06/15/08 .................. 1,380 1,383
Unifi, Inc.
6.50% due 02/01/08 ................... 2,525 2,497
Westpoint Stevens, Inc. - Sr. Notes
144A(a)
7.87% due 06/15/05 ................... 1,920 1,939
-------
8,118
Steel - 0.3%
Bayou Steel Corp. - 1st Mtge. 144A(a)
9.50% due 05/15/08 ................... 1,360 1,348
Ivaco, Inc. - Sr. Notes
11.50% due 09/15/05 .................. 1,392 1,524
-------
2,872
Telecommunication Services - 0.6%
McleodUSA, Inc. - Sr. Notes 144A(a)
8.37% due 03/15/08 ................... 1,935 1,940
Paging Network, Inc. - Sr. Sub. Notes
10.00% due 10/15/08 .................. 1,475 1,527
Qwest Communications International,
Inc. - Sr. Notes
10.87% due 04/01/07 .................. 1,560 1,788
-------
5,255
Telephone - 4.5%
Chesapeake & Potomac Telephone Co. -
Debs 6.05% due 05/15/03............... 6,460 6,473
47
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Telephone - Continued
Esprit Telecom Group plc - Sr. Notes
144A(a)
10.87% due 06/15/08 .................. $ 1,430 $ 1,416
Facilicom International, Inc. -
Sr. Notes 144A(a)
10.50% due 01/15/08 .................. 1,586 1,562
Flag, Ltd. - Sr. Notes 144A(a)
8.25% due 01/30/08 ................... 2,320 2,343
GTE Corp. - Debs
8.75% due 11/01/21 ................... 3,000 3,742
Metronet Communications Corp.
12.00% due 08/15/07 .................. 2,320 2,616
Michigan Bell Telephone Co. - Debs
7.85% due 01/15/22 ................... 5,000 5,923
New Jersey Bell Telephone Co. - Debs
8.00% due 06/01/22 ................... 4,000 4,808
Nextel Communications, Inc.
1.00% due 02/15/08 ................... 260 166
Nextel Communications, Inc. -
Sr. Discount Notes
1.00% due 08/15/04 ................... 4,553 4,439
Nextlink Communications, Inc.
9.62% due 10/01/07 ................... 1,005 1,030
Nextlink Communications, Inc. -
Sr. Notes 144A(a)
9.00% due 03/15/08 ................... 746 746
Sprint Corp. - Notes
8.12% due 07/15/02 ................... 1,000 1,073
TeleWest plc - Debs
9.62% due 10/01/06 ................... 1,603 1,689
--------
38,026
Transportation Services - 2.9%
America West Airlines, Inc. - Pass thru
Certs
6.93% due 01/02/08 ................... 2,196 2,229
Continental Airlines - Pass thru Certs
7.20% due 06/30/04 ................... 3,341 3,433
Erac USA Finance Co. - 144A(a)
6.62% due 02/15/05 ................... 3,345 3,314
Fine Air Services, Inc. - Sr. Sub.
Notes
9.87% due 06/01/08 ................... 2,090 2,043
Northwest Airlines Corp.
8.37% due 03/15/04 ................... 2,015 2,081
Northwest Airlines Corp. - Ser. 1996-1
8.97% due 01/02/15 ................... 225 254
NWA Trust - Sr. Notes
9.25% due 06/21/14 ................... 2,445 2,942
U.S. Air, Inc. - Pass thru Certs. Ser.
1990-A1
11.20% due 03/19/05 .................. 1,327 1,541
Union Pacific Corp. - Notes
9.65% due 06/01/00 ................... 5,000 5,322
Wisconsin Central Transportation Corp.
6.62% due 04/15/08 ................... 1,360 1,351
--------
24,510
U.S. Government Agencies - 7.4%
Federal Home Loan Mortgage Corp.
6.00% due 10/15/08 ................... 2,515 2,506
6.00% due 06/15/11 ................... 10,000 9,984
6.50% due 12/15/23 ................... 2,725 2,768
Federal National Association
6.94% due 01/25/22 ................... 1,600 1,662
Federal National Mortgage Assoc
7.00% due 12/01/99 ................... 7,820 7,930
Federal National Mortgage Assoc. -
Ser. 1998-5 Cl. A
6.50% due 12/01/99 ................... 11,745 11,697
Government National Mortgage Assoc
7.00% due 12/15/99 ................... 3,080 3,129
8.00% due 02/15/25 ................... 1,059 1,098
8.00% due 05/15/25 ................... 670 694
8.00% due 06/15/25 ................... 778 806
8.00% due 06/15/25 ................... 656 679
8.00% due 06/15/25 ................... 28 29
8.00% due 09/15/25 ................... 1,509 1,563
8.00% due 09/15/25 ................... 672 697
8.00% due 10/15/25 ................... 1,233 1,278
8.00% due 01/15/26 ................... 514 533
8.00% due 01/15/26 ................... 196 203
8.00% due 01/15/27 ................... 2,234 2,315
8.00% due 08/15/27 ................... 2,980 3,088
8.00% due 08/15/27 ................... 4,972 5,152
8.50% due 09/15/21 ................... 1,220 1,292
9.00% due 05/15/21 ................... 1,242 1,336
9.00% due 08/15/21 ................... 1,007 1,082
9.50% due 06/15/16 ................... 763 827
--------
62,168
U.S. Governmental - 22.1%
U.S. Treasury - Notes/Bonds
5.75% due 08/15/03 ................... 26,235 26,514
7.00% due 07/15/06 ................... 19,869 21,698
7.12% due 02/15/23 ................... 59,142 69,963
7.50% due 05/15/02 ................... 21,360 22,795
7.50% due 02/15/05 ................... 19,876 22,000
7.75% due 11/30/99 ................... 4,717 4,858
8.00% due 05/15/01 ................... 7,144 7,606
8.87% due 08/15/17 ................... 8,314 11,334
--------
186,768
--------
TOTAL PUBLICLY-TRADED BONDS- 95.3% 805,858
WARRANTS
Telecommunications Equipment - 0.0%
Metronet Communications Corp. -
CW07 144A(a)
expires 08/15/07 (Cost $0)............ 12 111
48
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 6.0%
Investment in joint trading account
(Note B)
5.88% due 07/01/98 ................. $47,893 $ 47,901
------- --------
TOTAL INVESTMENTS- 101.3 % 853,870
Payables, less Cash and Receivables- (1.3)% (8,697)
------- --------
NET ASSETS- 100.0 % $845,173
======= ========
(a) Pursuant to Rule 144A under the Securities Act of 1933, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At June 30, 1998, securities aggregated $64,057 or 7.6%
of the net assets of the Portfolio.
See notes to financial statements.
49
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 3.7%
Banco de Galicia y Buenos Aires SA de CV
(BANK) .................................... 9,300 $ 170
Telefonica de Argentina SA (OILX) .......... 4,000 130
-------
300
Brazil - 22.4%
Centrais Electricas Brasileiras S.A. -
ADR (UTIE) ................................ 18,600 269
Centrais Geradoras do Sul do Brasil S.A. -
ADR (UTIE) ................................ 1,860 13
Companhia Energetica de Minas Gerais - ADR
(UTIE) .................................... 15,048 399
Petroleo Brasileiro S.A. (OILX) ............ 11,100 206
Telecomunicacoes Brasileiras S.A. -
ADR (UTIT) ................................ 8,650 945
-------
1,832
Chili - 0.2%
LAN Chile - ADR (TRAN) ..................... 2,000 16
China - 1.2%
Yanzhou Coal Mining Co., Ltd. -
ADR (META) ................................ 10,400 101
Egypt - 3.6%
Al-Ahram Beverage Co. S. A. E -
GDR (FOOD) ................................ 9,300 296
Hong Kong - 3.4%
China Telecom (Hong Kong), Ltd. -
ADR (TELS) ................................ 3,900 135
CLP Holdings, Ltd. - ADR (UTIE) ............ 31,000 141
-------
276
India - 5.1%
Bajaj Auto, Ltd. (AUTO) .................... 7,600 103
BSES, Ltd. (UTIE) .......................... 9,000 100
State Bank of India (BANK) ................. 7,600 90
Videsh Sanchar Nigam, Ltd. (TELS) .......... 11,700 125
-------
418
Israel - 4.0%
Bank Leumi Le-Israel (UTIE) ................ 62,800 125
ECI Telecommunications, Ltd. (MEDI) ........ 5,300 201
-------
326
Mexico - 3.4%
Corporacion Interamericana de
Entretenimiento SA (LEIS) ................. 15,000 42
Grupo Radio Centro S.A. de C.V. - (MEDI) ... 7,500 83
Telefonos de Mexico SA - ADR (UTIT) ........ 3,200 154
-------
279
Panama - 1.0%
Panamerican Beverages, Inc. - Cl. A
(FOOD) .................................... 2,500 79
Philippines - 0.7%
Philippine Long District Telephone Co.
(UTIT) .................................... 2,700 61
Poland - 0.9%
Prokom Software - GDR (SOFT) ............... 4,100 74
Portugal - 5.7%
Brisa-Auto Estradas de Portugal, S.A.
(MEDI) .................................... 7,100 304
Companhia de Seguros Tranquilidade
(INSU) .................................... 6,100 165
-------
469
Russia - 3.1%
Chelyabinksvyazinform - ADR (TELS) ......... 14,900 89
Irkutskenergo - (UTIE) ..................... 22,700 111
LUKoil Holding - ADR (OILX) ................ 1,500 50
-------
250
South Africa - 15.4%
Barlow, Ltd. (DIOP) ........................ 35,800 189
De Beers Centenary AG (UTIE) ............... 15,750 277
JCI Ltd. (FINL) ............................ 57,900 301
Liberty Life Association of Africa, Ltd.
(INSU) .................................... 10,300 201
Molope Foods, Ltd. (FOOD) .................. 160,000 191
NBS Boland Group, Ltd. (MEDI) .............. 77,000 100
-------
1,259
South Korea - 2.6%
L.G. Chemicals, Ltd. (CHEM) ................ 5,000 28
LG Semiconductor Co. (MEDI) ................ 7,200 57
Shinhan Bank (BANK) ........................ 21,000 70
Sindo Ricoh (COMM) ......................... 2,000 54
-------
209
Taiwan - 5.1%
R.O.C. Taiwan Fund (FUND) .................. 6,500 44
Standard Foods Taiwan, Ltd. (OILX) ......... 6,300 73
Synnex Technology International Corp.
(COMP) .................................... 6,100 105
Taiwan Semiconductor Manufacturing Co., Ltd.
- ADR (FUND) .............................. 5,750 97
Yageo Corp. (ETRN) ......................... 11,700 97
-------
416
Thailand - 1.7%
BEC World Public Co., Ltd. (MEDI) .......... 16,000 61
Industrial Finance Corp. of Thailand Ltd.
(FINL) .................................... 205,000 42
PTT Exploration and Production Public Co.,
Ltd. (OILX) ............................... 4,700 36
-------
139
50
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Turkey - 8.4%
Dogan Sirketler Grubu Holding A.S.
(MEDI) ...................................... 2,400,000 $ 146
Haci Omer Sabanci Holding AG (FUND) .......... 3,950,000 245
Tukiye Is Bankasi (Isbank) - Cl. C (BANK) .... 2,450,000 99
Yapi ve Kredi Bankasi A.S. (BANK) ............ 7,800,000 199
---------
689
United States - 1.1%
Ceske Radiokomunikace - GDR (MEDI) ........... 4,260 91
Venezuela - 0.6%
Compania Anonima Nacional Telefonos de
Venezuela - ADR* (TELS) ..................... 1,800 45
---------
TOTAL COMMON STOCK- 93.3% 7,625
Warrants
Philippines - 0.7%
Jollibee Foods, Corp. (RETF)
expires 03/24/03 (Cost $77) ................. 175,000 54
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 6.0%
Investment in joint trading account (Note B)
5.88% due 07/01/98 .......................... $ 494 494
---------- ---------
TOTAL INVESTMENTS- 100.0% 8,173
---------- ---------
NET ASSETS- 100.0% $ 8,173
========== =========
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statement.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market %
Industry Industry Value Long-Term
Abbreviation (000's) Investments
Telephone ............................... UTIT $1,291 16.8%
Electric Power .......................... UTIE 1,032 13.4%
Banks ................................... BANK 853 11.1%
Food, Beverage, and
Tobacco ................................ FOOD 694 9.0%
Telecommunication
Services ............................... TELS 394 5.1%
Brokerage and Investment
Management ............................. FUND 386 5.0%
Insurance ............................... INSU 366 4.8%
Financial Services ...................... FINL 343 4.5%
Diversified Operations .................. DIOP 335 4.4%
Transportation Services ................. TRAN 320 4.2%
Oil and Natural Gas
Exploration and
Production ............................. OILX 292 3.8%
Precious
Metals/Gems/Stones ..................... PMET 277 3.6%
Media - TV / Radio ...................... MEDI 235 3.1%
Telecommunication
Equipment .............................. TELE 201 2.6%
Computer Equipment ...................... COMP 162 2.1%
Automobile .............................. AUTO 103 1.3%
Metals and Mining ....................... META 101 1.3%
Electronic Products and
Services ............................... ETRN 97 1.3%
Computer Software ....................... SOFT 73 1.0%
Commercial Services ..................... COMM 54 0.7%
Leisure and Recreation .................. LEIS 42 0.5%
Chemicals ............................... CHEM 28 0.4%
------ -----
$7,679 100.0%
====== =====
51
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
Australia - 1.9%
Brambles Industries, Ltd. (DIOP) ........... 7,200 $ 142
Broken Hill Proprietary Co., Ltd. (DIOP) ... 53,600 454
Coca-Cola Amatil, Ltd. (FOOD) .............. 23,200 156
Coles Myer, Ltd. (RETS) .................... 33,600 132
CRA, Ltd. (PMET) ........................... 12,700 151
CSR, Ltd. (CONS) ........................... 52,000 151
Foster's Brewing Group, Ltd. (FOOD) ........ 70,100 165
Lend Lease Corp. (FINL) .................... 7,300 148
National Australia Bank, Ltd. (BANK) ....... 31,400 415
News Corp., Ltd. (MEDI) .................... 41,600 340
Normandy Mining, Ltd. (PMET) ............... 59,800 49
Orica, Ltd. (DIOP) ......................... 19,600 116
Pioneer International, Ltd. (CONS) ......... 41,900 100
Santos, Ltd. (OILX) ........................ 38,000 118
Telstra Corp., Ltd.* (TELS) ................ 124,200 319
Westpac Banking Corp., Ltd. (BANK) ......... 45,200 276
WMC, Ltd. (DIOP) ........................... 36,300 110
--------
3,342
Austria - 1.6%
Austrian Airlines (TRAN) ................... 3,550 117
Bank Austria AG (BANK) ..................... 7,150 582
BBAG Oesterreichische Brau
Beteiligungs AG (FOOD) .................... 1,950 115
Bohler-Uddeholm AG (STEE) .................. 1,500 99
EA-Generali AG (INSU) ...................... 750 221
Flughafen Wien AG (TRAN) ................... 2,900 139
Mayr-Melnhof Karton Ag (PAPR) .............. 1,800 118
Oesterreichische Elektrizitaetswirtschafts
AG (UTIE) ................................. 3,400 407
OMV AG (OILX) .............................. 3,000 402
RHI AG (DIOP) .............................. 2,650 129
VA Technologie AG (ENGI) ................... 1,700 212
Wienerberger Baustoffindustrie AG
(CONS) .................................... 1,100 266
--------
2,807
Belgium - 2.1%
Barco N.V. (DIOP) .......................... 559 156
Bekaert N.V. (METP) ........................ 139 116
Cimenteries CBR Cementbedrijven
(CONS) .................................... 1,574 177
Colruyt NV (RETF) .......................... 187 147
D' Ieteren SA (AUTO) ....................... 290 136
Delhaize "Le Lion" SA (RETF) ............... 2,255 158
Electrabel SA (UTIE) ....................... 1,136 322
Fortis AG (INSU) ........................... 2,092 534
Fortis AG - Strip WPR* (INSU) .............. 1,047
Groupe Bruxelles Lambert SA (FUND) ......... 1,094 221
KBC Bankverzekeringgs (BANK) ............... 3,540 317
N.V. Union Miniere SA* (META) .............. 1,461 90
Petrofina SA (OILX) ........................ 802 329
Solvay SA (FINL) ........................... 2,815 223
Tractebel (UTIE) ........................... 2,341 343
UCB SA (HEAL) .............................. 48 249
--------
3,663
Denmark - 1.5%
D/S 1912 - Cl. B (METP) .................... 40 343
D/S Svendborg - Cl. B (METP) ............... 25 306
Danisco A/S (FOOD) ......................... 2,450 165
Den Danske Bank (BANK) ..................... 3,850 462
FLS Industries A/S - Cl. B (CONS) .......... 4,100 104
Iss International Service System A/S - Cl. B
(COMM) .................................... 1,950 114
Novo-Nordisk A/S - Cl. B (HEAL) ............ 3,450 476
Tele Danmark A/S (TELS) .................... 5,850 562
Unidanmark A/S - Cl. A (BANK) .............. 2,300 207
--------
2,739
Finland - 1.4%
Instrumentarium Group - Cl. A (HEAL) ....... 1,100 70
Kemira Oyj (CHEM) .......................... 9,700 100
Kesko Oyj (RETS) ........................... 6,100 96
Kone Corp. - Cl. B (MACH) .................. 600 84
Merita, Ltd. - Cl. A (BANK) ................ 35,700 236
Nokia Oyj - Cl. A (TELE) ................... 3,000 221
Outokumpu Oyj (META) ....................... 7,500 96
Oyj Nokia - K Shares (TELE) ................ 14,200 1,045
Pohjola Group Insurance Co. - Cl. A (INSU) . 1,200 59
Pohjola Group Insurance Co. - Cl. B (INSU) . 1,300 65
Sampo Insurance Co. plc (INSU) ............. 2,900 138
UPM-Kymmene Corp.* (PAPR) .................. 11,000 303
--------
2,513
France - 13.3%
Accor SA (LEIS) ............................ 1,300 364
Air Liquide (CHEM) ......................... 2,700 447
Alcatel Alsthom (TELE) ..................... 6,100 1,242
AXA SA (INSU) .............................. 12,110 1,362
Banque Nationale de Paris (BANK) ........... 7,800 637
Banque Paribas (BANK) ...................... 5,800 621
Bouygues SA (CONS) ......................... 1,100 200
Canal Plus (MEDI) .......................... 1,150 215
Capital Gemini SA (COMM) ................... 1,622 255
Carrefour SA (RETF) ........................ 1,350 854
Casino Guichard-Perrachon SA (RETF) ........ 2,900 232
Club Mediterranee SA (LEIS) ................ 1,000 86
Compagnie de St. Gobain - ADR (CONS) ....... 3,150 584
Vivendi (DIOP) ............................. 4,600 982
Comptoirs Modernes (RETF) .................. 275 143
Elf Aquitaine (OILX) ....................... 9,893 1,391
Eridania Beghin-Say SA (FOOD) .............. 1,050 232
Essilor International SA (HEAL) ............ 450 190
France Telecom* (TELS) ..................... 29,097 2,007
Group Danone* (FOOD) ....................... 2,450 675
Havas SA (MEDI) ............................ 3,050 259
52
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
France - Continued
Imetal SA (CONS) ............................ 950 $ 131
L'Oreal (HNBA) .............................. 2,312 1,286
Lafarge SA (CONS) ........................... 3,750 388
Lagardere S.C.A. (DIOP) ..................... 4,800 200
Legrand SA (ELEQ) ........................... 1,200 318
Lyonnaise des Eaux SA (DIOP) ................ 4,100 675
Michelin (PART) ............................. 5,450 315
Moet Hennessy-Louis Vuitton (FOOD) .......... 3,329 666
Pathe SA* (MEDI) ............................ 450 88
Pernod Ricard (FOOD) ........................ 2,550 177
Pinault-Printemps-Redoute SA (RETS) ......... 850 711
Promodes (RETF) ............................. 700 388
PSA Peugeot (AUTO) .......................... 1,900 408
Rhone-Poulenc SA (RETF) ..................... 12,872 726
Sagem SA (ETRN) ............................. 200 156
Sanofi SA (HEAL) ............................ 3,750 441
Schneider SA (MACH) ......................... 6,150 490
SEITA (FOOD) ................................ 2,750 125
Sidel SA (MACH) ............................. 1,650 120
Societe BIC SA (COMM) ....................... 2,450 174
Societe Eurafrance SA (FINL) ................ 250 157
Societe Generale de Paris (BANK) ............ 3,400 707
Thomson CFS (ETRN) .......................... 4,250 162
Total SA - Cl. B (OILX) ..................... 8,450 1,098
Unibail (REAL) .............................. 700 90
Usinor SA (STEE) ............................ 9,950 154
Valeo SA (PART) ............................. 2,800 286
---------
23,615
Germany - 19.3%
Adidas-Salomon AG (APPA) .................... 2,120 370
AGIV AG (MACH) .............................. 3,100 86
Allianz AG - Reg (FOOD) ..................... 10,530 3,512
AMB Aachener & Muenchener Beteiligungs AG
(INSU) .................................... 1,930 226
Axa Colonia Konzern AG (INSU) ............... 1,320 164
BASF AG (CHEM) .............................. 28,060 1,334
Bayer AG (CHEM) ............................. 32,380 1,677
Bayerische Hypotheken-und Wechsel-Bank AG
(BANK) .................................... 12,520 794
Bayerische Vereinsbank AG (BANK) ............ 13,820 1,172
Beiersdorf AG (HNBA) ........................ 4,420 282
Bilfinger & Berger Bau AG (CONS) ............ 2,960 102
Buderus AG (DIOP) ........................... 260 130
Continental AG (PART) ....................... 6,700 211
Daimler-Benz AG (AUTO) ...................... 24,320 2,394
Degussa AG (CHEM) ........................... 5,060 324
Deutsche Bank AG (BANK) ..................... 23,600 1,997
Deutsche Telekom AG* (TELS) ................. 101,490 2,780
Douglas Holding AG (HNBA) ................... 2,490 133
Dresdner Bank AG (BANK) ..................... 21,760 1,176
Dyckerhoff AG (CONS) ........................ 260 102
FAG Kugelfischer Georg Schaefer
AG (DIOP) .................................. 5,680 85
Friedrich Grohe AG (CONS) ................... 400 135
Heidelberg Zement (CONS) .................... 2,730 259
Hochtief AG (CONS) .......................... 3,810 183
Karstadt AG (RETS) .......................... 470 229
Linde AG (ENGI) ............................. 430 296
Lufthansa AG (TRAN) ......................... 18,180 458
M.A.N. AG (DIOP) ............................ 590 230
Mannesmann AG (MACH) ........................ 17,200 1,769
Merck KGaA (HEAL) ........................... 8,410 377
Metro AG* (RETS) ............................ 10,350 626
Muenchener Rueckversicherungs-Gesellschaft AG
- Reg (INSU) ............................... 3,660 1,818
Preussag AG (DIOP) .......................... 790 283
RWE AG (OILX) ............................... 14,450 856
SAP AG (SOFT) ............................... 2,720 1,651
Schering AG (HEAL) .......................... 3,280 386
SGL Carbon AG (CHEM) ........................ 1,190 139
Siemens AG (DIOP) ........................... 25,760 1,573
Thyssen AG (DIOP) ........................... 1,510 384
VEBA AG (DIOP) .............................. 21,880 1,472
Viag AG (DIOP) .............................. 1,170 806
Volkswagen AG (AUTO) ........................ 1,410 1,363
---------
34,344
Hong Kong - 0.8%
Cheung Kong (Holdings), Ltd. (READ) ......... 29,000 143
CLP Holdings, Ltd. (UTIE) ................... 20,000 91
Hang Seng Bank, Ltd. (BANK) ................. 16,000 90
Hong Kong Telecommunications, Ltd.
(TELS) ..................................... 95,000 178
HSBC Holdings plc (BANK) .................... 23,600 577
Hutchison Whampoa, Ltd. (COMM) .............. 34,000 180
Sun Hung Kai Properties, Ltd. (REIT) ........ 32,000 136
---------
1,395
Ireland - 0.7%
Allied Irish Banks plc (BANK) ............... 26,800 387
CRH plc (CONS) .............................. 13,300 189
Greencore Group plc (FOOD) .................. 26,000 142
Independent Newspapers, Ltd. (MEDP) ......... 14,100 76
Irish Life plc (INSU) ....................... 15,700 145
Jefferson Smurfit Group plc (CONT) .......... 41,800 124
Kerry Group plc (FOOD) ...................... 8,400 116
---------
1,179
Italy - 12.2%
Assicurazioni Generali (INSU) ............... 65,500 2,131
Assitalia-Le Assicurzioni d'Italia (INSU) ... 63,865 404
Banca Commerciale Italiana (BANK) ........... 120,800 723
Banca Intesa SpA (DIOP) ..................... 103,800 581
Banca Intesa SpA - RNC (BANK) ............... 45,400 134
Banca Populare di Milano (BANK) ............. 21,100 168
Benetton Group SpA (APPA) ................... 135,000 280
Bulgari SpA (RETS) .......................... 18,900 99
53
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Italy - Continued
Burgo (Cartiere) SpA (PAPR) ................ 13,700 $ 110
Credito Italiano SpA (BANK) ................ 191,600 1,003
Edison SpA (ENER) .......................... 43,600 350
Ente Nazionale Idrocarburi SpA (OILS) ...... 522,800 3,428
Falck Acciaierie & Ferriere Lombarde
(STEE) .................................... 9,600 58
Fiat SpA (AUTO) ............................ 247,400 1,083
Fiat SpA - RNC (AUTO) ...................... 57,200 142
Istituto Bancario San Paolo di Torino
(MEDP) .................................... 54,000 780
Istituto Mobiliare Italiano SpA (FINL) ..... 40,300 635
Istituto Nazionale delle Assicurazioni
(INSU) .................................... 261,600 744
Italcementi SpA (CONS) ..................... 13,300 120
Italgas SpA (UTIG) ......................... 50,300 205
La Rinascente SpA (CONS) ................... 16,500 164
Magneti Marelli (PART) ..................... 36,900 81
Marzotto & Figli SpA (APPA) ................ 7,500 114
Mediaset SpA (MEDI) ........................ 78,700 503
Mediobanca SpA (FUND) ...................... 31,500 400
Mondadori (Arnoldo) Editore SpA (MEDP) ..... 10,900 129
Montedison SpA* (CHEM) ..................... 339,500 421
Olivetti SpA (COMM) ........................ 188,400 280
Parmalat Finanziaria SpA (FOOD) ............ 107,600 220
Pirelli SpA (DIOP) ......................... 126,100 394
Riunione Adriatica di Sicorta SpA (INSU) ... 28,400 370
Riunione Adriatica di Sicorta SpA -
RNC (FUND) ................................ 12,600 113
Sirti SpA (TELE) ........................... 24,600 134
SNIA BPD SpA (CHEM) ........................ 68,300 84
Societa Assicuratrice Industriale (INSU) ... 10,600 135
Telecom Italia Mobile (TIM) SpA (TELS) ..... 440,100 2,692
Telecom Italia Mobile SpA - RNC (TELS) ..... 100,700 340
Telecom Italia SpA* (TELS) ................. 241,500 1,779
Telecom Italia SpA - RNC (TELS) ............ 57,300 278
--------
21,809
Japan - 17.5%
Acom Co., Ltd. (LEND) ...................... 4,000 191
Advantest (ETRN) ........................... 2,200 119
Ajinomoto Co., Inc. (FOOD) ................. 18,000 158
Alps Electric Co. (ETRN) ................... 9,000 107
Asahi Bank Ltd. (BANK) ..................... 53,000 234
Asahi Breweries Ltd. (FOOD) ................ 13,000 165
Asahi Chemical Industry Co., Ltd. (CHEM) ... 44,000 159
Asahi Glass Co., Ltd. (APPL) ............... 34,000 184
Bank of Tokyo-Mitsubishi (BANK) ............ 100,000 1,062
Bank of Yokohama, Ltd. (BANK) .............. 39,000 96
Canon, Inc. (COMM) ......................... 20,000 456
Casio Computer Co. (ETRN) .................. 13,000 121
Chiba Bank, Ltd. (BANK) .................... 23,000 80
Cosmo Oil Co., Ltd. (OILE) ................. 49,000 89
Credit Saison Co., Ltd. (FINL) ............. 4,600 92
Dai Nippon Printng Co., Ltd. (COMM) ........ 17,000 272
Daiei, Inc. (RETS) ......................... 22,000 52
Daiichi Pharmaceutical Co., Ltd. (HEAL) .... 10,000 132
Dainippon Ink & Chemicals, Inc. (CHEM) ..... 30,000 92
Daiwa House Industry Co., Ltd. (HOUS) ...... 17,000 151
Daiwa Securities Co., Ltd. (FUND) .......... 37,000 160
East Japan Railway Co. (TRAN) .............. 84 396
Eisai Co. Ltd. (HEAL) ...................... 9,000 123
Fanuc, Ltd. (ELEQ) ......................... 6,000 208
Fuji Bank, Ltd. (BANK) ..................... 69,000 309
Fuji Photo Film (LEIS) ..................... 11,000 384
Fujitsu, Ltd. (ELEQ) ....................... 42,000 444
Furukawa Electric Co. (TELE) ............... 58,000 196
Hitachi, Ltd. (ETRN) ....................... 70,000 458
Honda Motor Co. (AUTO) ..................... 21,000 750
Hoya Corp. (ETRN) .......................... 3,000 85
Industrial Bank of Japan (BANK) ............ 63,000 396
Isetan Co., Ltd. (RETS) .................... 7,000 59
Ito-Yokado Co., Ltd. (RETS) ................ 9,000 425
Itochu Corp. (DIOP) ........................ 36,000 78
Japan Airlines Co., Ltd. (TRAN) ............ 47,000 131
Japan Energy Corp. (OILX) .................. 103,000 110
Joyo Bank, Ltd. (BANK) ..................... 29,000 107
JUSCO Co., Ltd.* (RETS) .................... 8,000 147
Kajima Corp. (CONS) ........................ 35,000 96
Kansai Electric Power Co., Inc. (UTIE) ..... 18,000 314
KAO Corp. (HNBA) ........................... 15,000 232
Kawasaki Heavy Industry, Ltd. (DIOP) ....... 48,000 97
Kawasaki Steel Corp. (STEE) ................ 82,000 148
Kinden Corp. (ENGI) ........................ 9,000 109
Kinki Nippon Railway (TRAN) ................ 43,000 202
Kirin Brewery Co. (FOOD) ................... 25,000 237
Komatsu, Ltd. (MACH) ....................... 30,000 146
Kubota Corp. (MACH) ........................ 54,000 125
Kyocera Corp. (ETRN) ....................... 5,000 245
Marubeni Corp. (DIOP) ...................... 41,000 82
Marui Co., Ltd. (RETS) ..................... 10,000 150
Matsushita Electric Industrial Co. (ETRN) .. 45,000 726
Minebea Co., Ltd. (ETRN) ................... 14,000 140
Mitsubishi Chemical Corp. (CHEM) ........... 61,000 111
Mitsubishi Corp. (DIOP) .................... 32,000 199
Mitsubishi Electric Corp. (ETRN) ........... 61,000 141
Mitsubishi Estate Co., Ltd. (REAL) ......... 28,000 247
Mitsubishi Heavy Industries, Ltd. (MACH) ... 78,000 296
Mitsubishi Materials Corp. (PMET) .......... 50,000 102
Mitsubishi Trust & Banking Corp. (BANK) .... 34,000 290
Mitsui & Co., Ltd. (DIOP) .................. 31,000 168
Mitsui Fudosan (REAL) ...................... 22,000 174
Mitsui Marine & Fire Insurance Co.,
Ltd. (INSU) ............................... 25,000 126
Mitsui Trust & Banking Co., Ltd. (BANK) .... 38,000 90
Murata Manufacturing Co., Ltd. (ETRN) ...... 6,000 195
NEC Corp. (COMP) ........................... 36,000 337
Nikon Corp. (LEIS) ......................... 11,000 79
Nippon Express Co., Ltd. (TRAN) ............ 29,000 156
54
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- -----------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
Nippon Fire & Marine Insurance Co.,
Ltd. (INSU) ............................... 20,000 $ 82
Nippon Oil Co., Ltd. (OILX) ................ 39,000 126
Nippon Paper Industries Co. (PAPR) ......... 25,000 105
Nippon Steel Co. (STEE) .................... 144,000 254
Nippon Telegraph & Telephone Corp.
(UTIT) .................................... 276 2,296
Nippon Yusen Kabushiki Kaisha (TRAN) ....... 42,000 143
Nippondenso Co., Ltd. (ETRN) ............... 19,000 316
Nissan Motor Acceptance Corp. (FINL) ....... 64,000 202
Nkk Corp. (STEE) ........................... 98,000 94
Nomura Securities Co., Ltd. (FUND) ......... 43,000 502
NSK, Ltd. (META) ........................... 28,000 114
Obayashi Corp. (CONS) ...................... 22,000 94
Oji Paper Co. (PAPR) ....................... 27,000 118
Omron Corp. (ETRN) ......................... 8,000 123
Onward Kashiyama Co., Ltd. (APPA) .......... 10,000 125
Orix Corp. (FINL) .......................... 2,000 136
Osaka Gas Co. (UTIG) ....................... 71,000 183
Pioneer Electronic Corp. (ETRN) ............ 8,000 153
Rohm Co., Ltd. (ETRN) ...................... 3,000 309
Sakura Bank, Ltd. (BANK) ................... 94,000 245
Sankyo Co., Ltd. (HEAL) .................... 10,000 229
Sanyo Electric Co. (ETRN) .................. 56,000 170
Secom Co. (ETRN) ........................... 3,000 174
Sekisui Chemical Co. (CHEM) ................ 18,000 92
Sekisui House, Ltd. (CONS) ................. 22,000 171
Sharp Corp. (ETRN) ......................... 33,000 268
SHIMANO, Inc. (LEIS) ....................... 4,000 102
Shimizu Corp. (CONS) ....................... 31,000 90
Shin-Etsu Chemical Co. (CHEM) .............. 10,000 174
Shiseido Co., Ltd. (HNBA) .................. 13,000 148
Shizuoka Bank, Ltd. (BANK) ................. 19,000 205
SMC Corp. (MACH) ........................... 1,800 137
Sony Corp. (ETRN) .......................... 9,000 778
Sumitomo Bank (BANK) ....................... 72,000 703
Sumitomo Chemical Co. (CHEM) ............... 43,000 133
Sumitomo Corp. (DIOP) ...................... 25,000 121
Sumitomo Electric Industries (TELE) ........ 20,000 203
Sumitomo Marine & Fire Insurance Co.,
Ltd. (INSU) ............................... 21,000 118
Sumitomo Metal Industries (STEE) ........... 81,000 131
Sumitomo Metal Mining Co. (PMET) ........... 21,000 86
Taisho Pharmaceutical Co., Ltd. (HEAL) ..... 9,000 169
Takashimaya Co. (RETS) ..................... 11,000 83
Takeda Chemical Industries (HEAL) .......... 18,000 480
Teijin, Ltd. (APPA) ........................ 37,000 112
Tobu Railway Co., Ltd. (TRAN) .............. 51,000 135
Toho Co., Ltd. (MEDI) ...................... 1,000 106
Tohoku Electric Power (UTIE) ............... 13,000 192
Tokai Bank Ltd. (BANK) ..................... 53,000 293
Tokio Marine & Fire Insurance Co. (INSU) ... 32,000 330
Tokyo Electric Power (UTIE) ................ 26,000 511
Tokyo Electron, Ltd. (ETRN) ................ 4,000 123
Tokyo Gas Co. (OILX) ....................... 76,000 170
Tokyu Corp. (TRAN) ......................... 56,000 171
Toppan Printing Co. (CNSU) ................. 17,000 182
Toray Industries, Inc. (APPA) .............. 37,000 193
Tostem Corp. (CONS) ........................ 8,000 104
Toto, Ltd. (APPL) .......................... 15,000 91
Toyo Seikan Kaisha, Ltd. (CONT) ............ 7,000 86
Toyoda Automatic Loom Works,
Ltd. (MACH) ............................... 9,000 160
Toyota Motor Corp. (AUTO) .................. 80,000 2,077
Uni-Charm Corp. (PAPR) ..................... 3,000 112
UNY Co., Ltd. (RETS) ....................... 6,000 98
Wacoal Corp. (APPA) ........................ 12,000 122
Yamaha Corp. (LEIS) ........................ 11,000 107
Yamanouchi Pharmaceutical Co.,
Ltd. (HEAL) ............................... 9,000 188
Yamato Transport Co., Ltd. (TRAN) .......... 14,000 157
--------
31,243
Malaysia - 0.1%
Magnum Corp. Berhad (LEIS) ................. 153,000 57
Malayan Banking Berhad (BANK) .............. 35,600 36
Malayan Banking Berhad (BANK) .............. 35,600 36
RHB Capital Berhad (BANK) .................. 171,000 69
Telekom Malaysia Berhad (TELS) ............. 35,000 59
--------
257
Netherlands - 2.8%
ABN Amro Holding NV (BANK) ................. 19,500 457
Akzo Nobel NV (CHEM) ....................... 1,100 245
Elsevier NV (MEDP) ......................... 10,500 159
Heineken NV (FOOD) ......................... 4,375 172
ING Groep NV (BANK) ........................ 10,900 714
Koninklijke Ahold NV (RETL) ................ 7,500 241
Koninklijke KPN NV (UTIT) .................. 7,050 272
Philips Electronics NV (ETRN) .............. 5,200 437
Royal Dutch Petroleum Co. (OILS) ........... 24,950 1,384
TNT Post Group NV (TRAN) ................... 7,050 180
Unilever NV (CNSU) ......................... 7,750 615
Wolters Kluwer NV (MEDP) ................... 1,100 151
--------
5,027
New Zealand - 0.3%
Brierley Investments, Ltd. (LEIS) .......... 269,100 134
Carter Holt Harvey, Ltd. (PAPR) ............ 99,400 87
Telecom Corp. of New Zealand (TELS) ........ 58,200 241
--------
462
Norway - 0.9%
Christiania Bank Og Kreditkasse (BANK) ..... 28,440 119
Den Norske Bank (LEIS) ..................... 28,960 152
Dyno Industrier ASA (COMM) ................. 5,120 91
Kvaerner plc (CONS) ........................ 2,040 69
Leif Hoegh & Co. ASA (TRAN) ................ 7,440 109
55
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Norway - Continued
Merkantildata ASA (SOFT) ................... 2,494 $ 32
Norsk Hydro ASA (DIOP) ..................... 9,340 411
Orkla ASA (DIOP) ........................... 6,720 156
Petroleum Geo-Services (OILE) .............. 3,520 110
SAS Norge ASA - Cl. B (LEIS) ............... 3,680 63
Schibsted ASA (MEDP) ....................... 4,160 70
Storebrand ASA (INSU) ...................... 13,040 116
Tomra Systems ASA (POLL) ................... 2,520 76
--------
1,574
Singapore - 0.2%
City Developments, Ltd. (READ) ............. 23,000 65
Keppel Corp., Ltd.* - Cl. A (DIOP) ......... 52,000 78
Oversea-Chinese Bank Corp.,
Ltd. - Cl. A (BANK) ....................... 24,638 84
Singapore Telecommunications, Ltd. .........
(TELS) .................................... 87,000 124
United Overseas Bank, Ltd. (BANK) .......... 33,000 103
--------
454
Spain - 5.2%
Acerinox SA (STEE) ......................... 600 80
Autopistas Concesionaria Espanola SA
(TRAN) .................................... 13,200 204
Autopistas Concesionaria Espanola SA
(TRAN) .................................... 13,200 10
Banco Bilbao Vizcaya SA (BANK) ............. 26,400 1,355
Banco Santander SA (BANK) .................. 41,800 1,070
Bco Central Hispan (BANK) .................. 15,000 472
Corporacion Bancaria de Espana SA
(BANK) .................................... 20,400 458
Corporacion Financiera Alba, SA (TRAN) ..... 1,000 110
Corporacion Mapfre Sa (INSU) ............... 3,400 119
Dragados & Construcciones, SA (CONS) ....... 5,100 163
Empresa Nacional de Electricidad SA
(UTIE) .................................... 41,700 912
Fomento de Construcciones y Contratas SA
(INSU) .................................... 3,000 155
Gas Natural SDG SA (UTIG) .................. 6,100 441
Iberdrola SA (UTIE) ........................ 36,100 586
Repsol SA (OILX) ........................... 12,700 700
Sociedad General de Aguas de Barcelona SA
(FOOD) .................................... 2,800 156
Telefonica de Espana (UTIT) ................ 41,400 1,914
Union Electrica Fenosa, SA (UTIE) .......... 14,000 180
Vallehermoso SA (READ) ..................... 2,900 107
Zardoya Otis SA (MACH) ..................... 3,800 113
--------
9,305
Sweden - 1.9%
ABB AB - Cl. A (MACH) ...................... 11,750 166
Astra AB - Cl. B (HEAL) .................... 19,900 407
Electrolux AB - Ser. B (APPL) .............. 7,750 133
Ericsson(Lm) Telephone - Ser. B (TELE) ..... 29,700 868
ForeningsSparbanken AB (BANK) .............. 5,800 175
Hennes & Mauritz AB - B Shares (RETS) ...... 3,450 220
NetCom Systems, Inc. - Cl. B (TELS) ........ 2,332 89
Sandvik AB - Cl. A (MACH) .................. 4,950 137
Securitas AB (CNSU) ........................ 2,300 113
Skand Enskilda Banken - Cl. A (BANK) ....... 10,200 175
Skandia Forsakrings AB (INSU) .............. 9,500 136
Skanska AB (CONS) .......................... 3,100 139
Stora Kopparbergs Berglags Aktiebolag -
Cl. B (PAPR) .............................. 6,950 109
Svenska Cellulosa AB - Cl. B (PAPR) ........ 4,500 116
Svenska Handelsbankenn (BANK) .............. 3,750 174
Volvo AB (AUTO) ............................ 5,750 171
--------
3,328
Switzerland - 2.4%
ABB AG* (ENGI) ............................. 100 148
Adecco SA (COMM) ........................... 190 86
CS Holding AG (BANK) ....................... 1,970 439
Nestle SA (FOOD) ........................... 280 600
Novartis AG* (HEAL) ........................ 440 733
Roche Holding AG (HEAL) .................... 10 148
Roche Holding AG (HEAL) .................... 50 492
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) .... 110 279
UBS AG (BANK) .............................. 2,814 1,048
Zurich Allied AG (AGRI) .................... 430 275
--------
4,248
United Kingdom - 9.4%
Abbey National First Capital BV (BANK) ..... 16,000 284
Associated British Foods plc (FOOD) ........ 14,600 138
B.A.T. Industries plc (FOOD) ............... 37,200 373
Barclays Bank (BANK) ....................... 18,400 531
Bass plc (FOOD) ............................ 11,100 208
BG plc (OILE) .............................. 46,800 271
BOC Group plc (CHEM) ....................... 9,400 128
Boots Co. plc (RETD) ....................... 12,300 204
British Aerospace plc (AERO) ............... 20,000 153
British Airways plc (TRAN) ................. 18,800 204
British Land Co. plc (REAL) ................ 8,700 89
British Petroleum Co. plc* (OILX) .......... 64,200 937
British Sky Broadcast plc (MEDI) ........... 21,700 156
British Steel plc - ADR (STEE) ............. 34,500 76
British Telecommunications plc (TELS) ...... 72,600 897
BTR plc (DIOP) ............................. 43,875 125
Burmah Castrol plc (OILX) .................. 8,700 155
Cable & Wireless plc (TELE) ................ 30,600 372
Cadbury Schweppes plc (FOOD) ............... 13,300 206
Carlton Communications plc (MEDI) .......... 16,300 146
Centrica plc* (UTIG) ....................... 73,000 123
CGU plc (INSU) ............................. 9,300 174
Diageo plc (FOOD) .......................... 44,200 524
56
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
United Kingdom - Continued
EMI Group plc (LEIS) ........................ 14,800 $ 129
General Electric Co. plc (ELEQ) ............. 33,200 286
GKN plc (PART) .............................. 10,200 130
Glaxo Wellcome plc - ADR (HEAL) ............. 41,710 1,253
Granada Group plc (DIOP) .................... 11,700 215
Great Universital Stores plc (RETS) ......... 13,600 179
Guardian Royal Exchange plc (INSU) .......... 20,295 119
HSBC Holdings plc (BANK) .................... 12,500 317
Imperial Chemical Industries plc (CHEM) ..... 9,900 159
J. Sainsbury plc (RETF) ..................... 24,100 215
Kingfisher plc (RETS) ....................... 9,300 150
Ladbroke Group plc (LEIS) ................... 20,700 114
Land Securities plc (REAL) .................. 8,400 130
LASMO plc (OILX) ............................ 22,200 89
Legal & General Group plc (INSU) ............ 15,700 168
Lloyds TSB Group plc (BANK) ................. 63,300 886
LucasVarity plc (PART) ...................... 25,100 100
Marks & Spencer plc (RETS) .................. 32,300 294
National Grid Group plc (UTIE) .............. 22,500 152
National Power plc (UTIE) ................... 16,500 155
Pearson plc (MEDP) .......................... 8,100 148
Peninsular & Oriental Steam Navigation
Co. (TRAN) ................................. 10,300 148
Prudential Corp. (INSU) ..................... 24,400 322
Railtrack Group plc (TRAN) .................. 7,400 181
Rank Group plc (MEDP) ....................... 16,000 88
Reed International plc (MEDP) ............... 15,400 139
Reuters Group plc (BUSI) .................... 18,600 213
Rolls-Royce plc (AERO) ...................... 20,200 83
Royal & Sun Alliance Insurance Group
plc (INSU) ................................. 19,300 200
Royal Bank of Scotland Group (BANK) ......... 11,500 200
RTZ Corp. plc (DIOP) ........................ 12,600 142
Safeway plc (RETF) .......................... 19,400 127
Schroders (BANK) ............................ 4,050 105
Scottish & Newcastle plc (FOOD) ............. 12,400 176
Scottish Power plc (UTIE) ................... 19,000 167
SmithKline Beecham plc (HEAL) ............... 62,500 763
Southern Electric plc (UTIE) ................ 8,900 81
Tesco plc (RETF) ............................ 26,500 259
Unilever (CNSU) ............................. 37,300 397
United Utilities plc (AGRI) ................. 10,400 151
Vodafone Group plc (TELS) ................... 38,500 489
Zeneca Group plc (HEAL) ..................... 10,500 451
---------
16,744
United States - 0.2%
Bridgestone Corp. (PART) .................... 17,000 403
---------
TOTAL COMMON STOCK- 95.7% 170,451
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (CNSU) ..................... 37,400 266
Austria - 0.1%
Bank Austria AG - Vorzug (BANK) ............. 2,850 232
Germany - 1.1%
RWE AG (OILX) ............................... 9,170 392
SAP AG - Vorzug (SOFT) ...................... 1,890 1,284
Volkswagen AG (AUTO) ........................ 430 296
---------
1,972
Italy - 0.1%
Fiat SpA (AUTO) ............................. 72,100 179
---------
TOTAL PREFERRED STOCK- 1.5% 2,649
Par
Value
(000's)
PUBLICLY-TRADED BONDS
United States - 0.1%
United States Treasury Bills (GOVE) ......... $ 50,000 49
United States Treasury Bills (GOVE) ......... 100,000 100
United States Treasury Bills (GOVE) ......... 50,000 49
---------
TOTAL PUBLICLY-TRADED BONDS- 0.1% 198
RIGHTS
France - 0.1%
Axa UAP-CTF de Valeur Garant (INSU)
Expires 7/31/98 (Cost $17) ................. 137
Germany - 0.0%
Metro AG (RETS)
Expires 7/02/98 ............................ 1
Spain - 0.0%
Zardoya Otis SA(MACH)
Expires 7/29/98 (Cost $21) ................. 18
---------
TOTAL RIGHTS- 0.1% 156
SHORT-TERM INVESTMENTS - 2.2%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ......................... 3,878 3,878
------ ---------
TOTAL INVESTMENTS- 99.6% 177,332
Cash and Receivables, less payables- 0.4% 726
------ ---------
NET ASSETS- 100.0% $ 178,058
====== =========
* Non-income producing security.
See notes to financial statements.
57
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market %
Industry Industry Value Long-Term
Abbreviation (000's) Investments
Banks ..................... BANK $ 26,410 15.2%
Telecommunications
Services ................ TELS 12,834 7.4%
Insurance ................ INSU 11,097 6.4%
Diversified Operations ... DIOP 10,774 6.2%
Food, Beverage and
Tobacco ................. FOOD 9,579 5.5%
Automobile ............... AUTO 8,999 5.2%
Health Care Products ..... HEAL 7,757 4.5%
Oil and Natural Gas
Exploration and
Production .............. OILX 6,873 4.0%
Chemicals ................ CHEM 5,819 3.4%
Electronic Products and
Services ................ ETRN 5,506 3.2%
Oils ..................... OILS 4,812 2.8%
Telephone ................ UTIT 4,482 2.6%
Electric Power ........... UTIE 4,413 2.5%
Construction ............. CONS 4,281 2.5%
Telecommunication
Equipment ............... TELE 4,281 2.5%
Machinery ................ MACH 3,847 2.2%
Retail - Department
Stores .................. RETS 3,751 2.2%
Transportation Services .. TRAN 3,496 2.0%
Retail - Food ............ RETF 3,490 2.0%
Computer Software and
Services ................ SOFT 2,967 1.7%
Cosmetic and Personal
Care .................... HNBA 2,081 1.2%
Commercial Services ...... COMM 1,908 1.1%
Media - TV / Radio ....... MEDI 1,813 1.0%
Leisure and Recreation ... LEIS 1,771 1.0%
Media - Publishing ....... MEDP 1,740 1.0%
Financial Services ....... FINL 1,593 0.9%
Consumer -
Miscellaneous ........... CNSU 1,573 0.9%
Paper and Forest
Products ................ PART 1,526 0.9%
Brokerage and Investment
Management .............. FUND 1,396 0.8%
Shoe and Apparel
Manufacturing ........... APPA 1,316 0.8%
Electrical Equipment ..... ELEQ 1,256 0.7%
Paper and Forest
Products ................ PAPR 1,178 0.7%
Steel .................... STEE 1,014 0.6%
Natural Gas Distribution.. UTIG 952 0.5%
Engineering and
Construction ............ ENGI 765 0.4%
Metal Production and
Fabrication ............. METP 765 0.4%
Real Estate Operations ... REAL 730 0.4%
Oil - Equipment and
Services ................ OILE 470 0.3%
Agricultural Operations .. AGRI 426 0.2%
Household Appliances /
Furnishings ............. APPL 408 0.2%
Precious
Metals/Gems/Stones ...... PMET 388 0.2%
Energy - Alternative
Sources ................. ENER 350 0.2%
Computer Equipment ....... COMP 337 0.2%
Real Estate Development .. READ 315 0.2%
Metals and Mining ........ META 300 0.2%
Aerospace and Defense .... AERO 236 0.1%
Business Services ........ BUSI 213 0.1%
Containers ............... CONT 210 0.1%
Retail - Drug Stores ..... RETD 204 0.1%
U.S. Governmental ........ GOVE 198 0.1%
Personal and Commercial
Lending ................. LEND 191 0.1%
Housing .................. HOUS 151 0.1%
Real Estate Investment
Trust ................... REIT 136 0.1%
Pollution Control ........ POLL 76 0.0%
-------- -----
$173,454 100.0%
======== =====
58
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 1.0%
Electricidad Argentina - ADR (UTIE) ................. 2,200 $ 33
YPF Sociedad Anonima - ADR (OILX) ................... 3,700 111
-------
144
Australia - 1.7%
Broken Hill Proprietary Co., Ltd. (DIOP) ............ 7,100 60
Foster's Brewing Group, Ltd. (FOOD) ................. 32,000 76
WMC, Ltd. (DIOP) .................................... 2,100 6
Woodside Petroleum, Ltd. (OILX) ..................... 23,300 117
-------
259
Austria - 0.4%
Flughafen Wien AG (TRAN) ............................ 1,300 62
Bermuda - 1.6%
EXEL, Ltd. (INSU) ................................... 3,100 241
Brazil - 1.7%
Aracruz Celulose SA - ADR (PAPR) .................... 5,200 59
Companhia Cervejaria Brahma - ADR
(FOOD) ............................................. 6,400 80
Companhia Vale do Rio Doce - ADR
(META) ............................................. 5,400 110
-------
249
Canada - 2.7%
BCE, Inc. (TELS) .................................... 2,100 90
Canadian National Railway Co. (TRAN) ................ 2,300 122
Canadian Pacific, Ltd. (TRAN) ....................... 4,300 121
Molson Cos., Ltd. (FOOD) ............................ 4,200 77
-------
410
France - 6.1%
AGF (Assurances Generales de France)
(INSU) ............................................. 3,643 206
AXA SA (INSU) ....................................... 1,447 163
Canal Plus (MEDI) ................................... 839 157
Michelin (PART) ..................................... 2,160 125
PSA Peugeot (AUTO) .................................. 555 119
Rhodia SA (CHEM) .................................... 365 10
Schneider SA (MACH) ................................. 1,749 139
-------
919
Germany - 15.2%
Allianz AG - Reg (FOOD) ............................. 711 237
BASF AG (CHEM) ...................................... 3,682 175
Bayer AG (CHEM) ..................................... 4,671 242
Bayerische Vereinsbank AG (BANK) .................... 2,743 233
BHF-Bank AG (BANK) .................................. 1,705 65
Commerzbank AG (BANK) ............................... 1,915 73
Deutsche Telekom AG* (TELS) ......................... 2,872 79
Deutsche Telekom AG - ADR (TELS) .................... 2,100 58
Heidelberger Druckmaschinen AG
(MACH) ............................................. 540 45
Hoechst AG (INSU) ................................... 4,471 225
Muenchener Rueckversicherungs-Gesellschaft
AG (INSU) .......................................... 177 63
Muenchener Rueckversicherungs-Gesellschaft
AG - REG (INSU) .................................... 454 225
Schering AG (HEAL) .................................. 1,263 149
VEBA AG (DIOP) ...................................... 3,739 251
Viag AG (DIOP) ...................................... 229 158
-------
2,278
Ghana - 0.2%
Ashanti Goldfields Co., Ltd. (PMET) ................. 2,700 22
Hong Kong - 1.3%
Cheung Kong (Holdings), Ltd. (READ) ................. 6,000 30
Citic Pacific, Ltd. (DIOP) .......................... 27,000 48
Hutchison Whampoa, Ltd. (COMM) ...................... 16,000 84
New World Development Co., Ltd.
(READ) ............................................. 15,000 29
-------
191
Italy - 0.9%
Istituto Nazionale delle Assicurazioni
(INSU) ............................................. 48,600 138
Japan - 5.0%
Canon, Inc. (COMM) .................................. 3,000 68
Daiwa Securities Co., Ltd. (FUND) ................... 10,000 43
Matsushita Electric Industrial Co. (ETRN) ........... 7,000 113
Minebea Co., Ltd. (ETRN) ............................ 9,000 90
Nichido Fire & Marine Insurance Co., Ltd.
(INSU) ............................................. 9,000 47
Nichiei Co., Ltd. (LEND) ............................ 1,000 68
Nomura Securities Co., Ltd. (FUND) .................. 10,000 117
Ono Pharmaceutical Co., Ltd. (HEAL) ................. 1,000 24
Shohkoh Fund & Co., Ltd. (FINL) ..................... 300 74
Sumitomo Metal Mining Co. (PMET) .................... 12,000 49
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL) ............................................. 3,000 63
-------
756
Netherlands - 2.2%
Aegon NV (INSU) ..................................... 2,620 228
ING Groep NV (BANK) ................................. 1,590 104
-------
332
South Africa - 0.5%
Anglo American Platinum Corp., Ltd.
(PMET) ............................................. 2,700 30
Sasol, Ltd. (OILX) .................................. 8,021 46
-------
76
Sweden - 2.8%
Aga AB (CHEM) ....................................... 4,500 69
Astra AB - Cl. B (HEAL) ............................. 6,200 127
59
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Sweden - Continued
Skandia Forsakrings AB (INSU) .................. 16,000 $ 228
-------
424
Switzerland - 9.1%
Ciba Specialty Chemicals AG* (CHEM) ............ 1,408 181
Clariant AG (CHEM) ............................. 358 236
CS Holding AG (BANK) ........................... 1,102 246
Nestle SA (FOOD) ............................... 84 180
Novartis AG* (HEAL) ............................ 166 277
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) ........ 94 238
-------
1,358
United Kingdom - 10.3%
BOC Group plc (CHEM) ........................... 9,210 126
Carlton Communications plc (MEDI) .............. 17,634 157
General Electric Co. plc (ELEQ) ................ 28,171 243
National Grid Group plc (UTIE) ................. 22,756 153
Railtrack Group plc (TRAN) ..................... 6,372 156
Reuters Group plc (BUSI) ....................... 13,926 159
RTZ Corp. plc (DIOP) ........................... 4,453 50
Shell Transport & Trading Co. plc (OILX) ....... 18,696 132
SmithKline Beecham plc (HEAL) .................. 8,490 104
Unilever (CNSU) ................................ 25,213 269
-------
1,549
United States - 23.7%
Advanced Micro Devices, Inc.* (ETRN) ........... 4,800 82
American Greetings Corp. - Cl. A (CNSU) ........ 700 36
Biogen, Inc.* (HEAL) ........................... 1,300 64
Boeing Co. (AERO) .............................. 2,900 129
Boston Scientific Corp.* (HEAL) ................ 1,400 100
Charles Schwab Corp. (FUND) .................... 1,400 46
Cinergy Corp. (UTIE) ........................... 6,900 241
Duke Energy Co. (UTIE) ......................... 1,400 83
Electronic Data Systems Corp. (SOFT) ........... 4,900 196
Enron Corp. (UTIG) ............................. 2,900 157
Equity Residential Properties Trust (REIT) ..... 3,100 147
First Data Corp. (SOFT) ........................ 5,000 167
Guidant Corp. (HEAL) ........................... 1,000 71
IBM Corp. (SOFT) ............................... 2,200 253
Lockheed Martin Corp. (AERO) ................... 1,400 148
MBIA, Inc. (INSU) .............................. 3,100 232
Newmont Mining Corp. (PMET) .................... 1,900 45
Parametric Technology Co.* (SOFT) .............. 4,600 125
Praxair, Inc. (CHEM) ........................... 2,800 131
SABRE Group Holdings, Inc. - Cl. A*
(LEIS) ........................................ 3,000 114
Security Capital Industrial Trust (DIOP) ....... 1,900 48
Sterling Commerce, Inc.* (ETRN) ................ 700 34
Stillwater Mining Co.* (PMET) .................. 4,100 111
Tele-Communications International, Inc. -
Cl. A* (TELS) ................................. 2,600 52
Tele-Communications, Inc.* (TELS) .............. 3,700 142
United States - Continued
U.S. Airways Group, Inc.* (TRAN) ............... 3,100 246
UNUM Corp. (INSU) .............................. 3,900 216
Williams Cos., Inc. (OILE) ..................... 4,300 145
-------
3,561
-------
TOTAL COMMON STOCK- .... 86.4% 12,969
PREFERRED STOCK
Germany - 3.7%
RWE AG (OILX) .................................. 6,000 257
SAP AG - Vorzug (SOFT) ......................... 432 293
-------
550
-------
TOTAL PREFERRED STOCK- .... 3.7% 550
Par
Value
(000's)
PUBLICLY-TRADED BONDS
United Kingdom - 2.6%
Treasury (GOVF)
8.5% due 07/16/07 ....................... $ 180,000 354
War (GOVF)
3.5% due 12/29/49 ....................... 45,000 46
-------
400
United States - 5.5%
U. S. Treasury (GOVE)
6.37% due 08/15/27 ..................... 360,000 395
U. S. Treasury - Strips (GOVE)
0.0% due 08/15/21 ....................... 1,600,000 428
-------
823
-------
TOTAL PUBLICLY-TRADED BONDS- 8.1% 1,223
--------- -------
TOTAL INVESTMENTS- 98.2% 14,742
Cash and Receivables, less payables- 1.8% 265
--------- -------
NET ASSETS- 100.0% $15,007
========= =======
* Non-income producing security.
See notes to financial statement.
60
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market %
Industry Industry Value Long-Term
Abbreviation (000's) Investments
Insurance .......................... INSU $2,448 16.6%
Chemicals .......................... CHEM 1,170 7.9%
Computer Software and
Services .......................... SOFT 1,034 7.0%
Health Care Products ............... HEAL 979 6.6%
U.S. Governmental .................. GOVE 823 5.6%
Banks .............................. BANK 721 4.9%
Transportation Services ............ TRAN 707 4.8%
Oil and Natural Gas
Exploration and
Production ........................ OILX 663 4.5%
Food, Beverage and
Tobacco ........................... FOOD 648 4.4%
Diversified Operations ............. DIOP 622 4.2%
Electric Power ..................... UTIG 512 3.5%
Telecommunications
Services .......................... TELS 421 2.9%
Foreign Governmental ............... GOVF 400 2.7%
Electronic Products and
Services .......................... ETRN 319 2.2%
Media - TV / Radio ................. MEDI 315 2.1%
Consumer - Miscellaneous ........... CNSU 305 2.1%
Aerospace and Defense .............. AERO 277 1.9%
Precious
Metals/Gems/Stones ................ PMET 257 1.7%
Electrical Equipment ............... ELEQ 243 1.6%
Brokerage and Investment
Management ........................ FUND 206 1.4%
Machinery .......................... MACH 184 1.2%
Business Services .................. BUSI 159 1.1%
Natural Gas Distribution ........... UTIG 157 1.1%
Commercial Services ................ COMM 152 1.0%
Real Estate Investment
Trust ............................. REIT 147 1.0%
Oil - Equipment and
Services .......................... OILE 145 1.0%
Auto and Truck Parts ............... PART 125 0.8%
Automobile ......................... AUTO 119 0.8%
Leisure and Recreation ............. LEIS 114 0.8%
Metals and Mining .................. META 110 0.7%
Financial Services ................. FINL 74 0.5%
Personal and Commercial
Lending ........................... LEND 68 0.5%
Paper and Forest Products .......... PAPR 59 0.4%
Real Estate Development ............ READ 59 0.4%
------- -----
$14,742 100.0%
======= =====
61
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.5%
AAR Corp. .................................... 10,800 $ 319
Auto and Truck Parts - 0.6%
CSK Auto Corp. ............................... 15,100 381
Automobile - 0.8%
United Rentals, Inc.* ........................ 11,400 479
Brokerage and Investment Management - 2.2%
Charles River Associates, Inc. ............... 16,600 415
Dain Rauscher Corp. .......................... 4,300 235
E*TRADE Group, Inc.* ......................... 19,000 436
Waddell & Reed Financial, Inc. - Cl. A ....... 9,600 230
-------
1,316
Business Services - 3.2%
Coinstar, Inc.* .............................. 32,100 297
Interim Services, Inc. ....................... 13,600 437
On Assignment, Inc.* ......................... 11,700 409
ProBusiness Services, Inc.* .................. 12,400 580
Professional Detailing, Inc. ................. 9,100 226
-------
1,949
Commercial Services - 8.1%
Abacus Direct Corp.* ......................... 8,600 447
Carey International, Inc.* ................... 6,200 174
CCC Information Services Group* .............. 14,400 237
Central Parking Corp. ........................ 7,900 367
Dendrite International, Inc.* ................ 13,900 523
EduTrek International, Inc. - Cl. A* ......... 10,200 250
Hagler Bailly, Inc.* ......................... 12,300 318
Lason, Inc.* ................................. 8,300 452
Mac Gray Corp.* .............................. 19,300 246
Mail-Well Holdings, Inc.* .................... 14,800 321
MAXIMUS, Inc.* ............................... 2,600 75
Meta Group, Inc.* ............................ 17,250 382
Metzler Group, Inc.* ......................... 13,350 489
Princeton Video Image, Inc.* ................. 23,900 110
Steiner Leisure, Ltd.* ....................... 15,500 469
Vari-Lite International, Inc.* ............... 15,200 95
-------
4,955
Computer Equipment - 1.9%
National Computer Systems, Inc.* ............. 19,000 456
Network Appliance, Inc.* ..................... 17,000 662
-------
1,118
Computer Software and Services - 17.6%
Advent Software, Inc.* ....................... 10,500 441
AnswerThink Consulting Group, Inc.* .......... 20,600 443
Aris Corp.* .................................. 17,000 476
Aspect Development, Inc.* .................... 5,500 416
Barra, Inc.* ................................. 12,300 301
Brio Technology, Inc.* ....................... 1,500 20
CBT Group Public, Ltd.* ...................... 8,400 449
Checkfree Holdings Corp. ..................... 13,400 395
Cognizant Technology Solutions Corp. ......... 24,700 298
Concentric Network Corp.* .................... 13,800 418
Concord Communications, Inc.* ................ 1,600 41
Exodus Communications, Inc.* ................. 4,400 197
Fundtech, Ltd.* .............................. 23,300 440
Hyperion Software Corp.* ..................... 6,800 194
Information Management Resources, Inc.* ...... 14,225 481
Inktomi Corp.* ............................... 100 4
International Integration, Inc.* ............. 1,700 29
International Network Services* .............. 11,700 480
JDA Software Group, Inc.* .................... 7,200 315
Manhattan Associates, Inc.* .................. 15,800 329
Micromuse, Inc.* ............................. 17,100 698
MicroStrategy, Inc.* ......................... 2,700 76
National Instruments Corp.* .................. 11,000 393
Network Event Theater, Inc.* ................. 45,000 191
RealNetworks, Inc.* .......................... 7,300 272
SCM Microsystems, Inc.* ...................... 5,100 319
SPR, Inc.* ................................... 11,800 367
Symantec Corp.* .............................. 14,600 382
THINK New Ideas, Inc.* ....................... 5,500 144
VeriSign, Inc. ............................... 15,900 594
Visio Corp.* ................................. 9,700 463
Whittman-Hart, Inc.* ......................... 6,700 324
Wind River Systems* .......................... 10,000 359
-------
10,749
Construction - 1.1%
Crossmann Communities, Inc.* ................. 12,300 374
SMED International, Inc.* .................... 16,000 288
-------
662
Consumer - Miscellaneous - 2.5%
Carriage Services, Inc. - Cl. A* ............. 14,200 357
ITI Education Corp.* ......................... 35,400 212
Rock of Ages Corp.* .......................... 15,700 243
Strayer Education, Inc. ...................... 8,250 299
Superior Services, Inc.* ..................... 13,300 400
-------
1,511
Containers - 0.4%
Ivex Packaging Corp.* ........................ 9,600 223
Diversified Operations - 1.7%
Metamor Worldwide, Inc.* ..................... 9,400 331
Waste Connections, Inc.* ..................... 18,600 370
Westinghouse Air Brake Co. ................... 13,500 354
-------
1,055
Electrical Equipment - 0.5%
Rambus, Inc.* ................................ 5,200 318
Electronic Products and Services - 4.4%
Aavid Thermal Technologies, Inc.* ............ 10,300 301
Atmi, Inc.* .................................. 19,600 294
Flextronics International Ltd. ............... 7,800 340
62
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Products and Services - Continued
Gentex Corp.* ................................ 18,600 $ 337
INSpire Insurance Solutions, Inc.* ........... 13,400 446
Level One Communications, Inc.* .............. 17,200 404
Pegasystems, Inc.* ........................... 8,600 233
Semtech Corp.* ............................... 8,600 152
Special Devices, Inc.* ....................... 5,000 177
-------
2,684
Financial Services - 4.4%
AmeriCredit Corp.* ........................... 15,300 546
CMAC Investment Corp. ........................ 5,000 307
Financial Federal Corp. ...................... 11,700 314
FIRSTPLUS Financial Group, Inc.* ............. 7,000 252
Linc Capital, Inc.* .......................... 19,100 329
Medallion Financial Corp. .................... 22,000 605
Rollins Truck Leasing Corp. .................. 27,300 338
-------
2,691
Food, Beverage and Tobacco - 2.9%
American Italian Pasta Co.* .................. 14,200 529
Beringer Wine Estates Holdings* .............. 4,600 203
Dominick's Supermarkets, Inc.* ............... 9,500 423
Scheid Vineyards, Inc. - Cl. A* .............. 25,700 178
Suiza Foods Corp.* ........................... 6,800 406
-------
1,739
Health Care Products - 4.1%
Alkermes, Inc.* .............................. 8,600 154
Hanger Orthopedic Group, Inc. ................ 20,400 416
Human Genome Sciences, Inc.* ................. 4,200 150
Incyte Pharmacuticals, Inc.* ................. 8,000 273
MiniMed, Inc.* ............................... 6,400 335
Perclose, Inc.* .............................. 10,800 305
Renal Care Group, Inc.* ...................... 7,200 317
Symphonix Devices, Inc. ...................... 18,400 212
Ventana Medical Systems, Inc. ................ 12,700 355
-------
2,517
Health Care Services - 2.8%
American Healthcorp, Inc.* ................... 23,700 234
Idec Pharmaceuticals Corp. ................... 6,500 153
IDX Systems Corp. ............................ 9,300 428
IMPATH, Inc.* ................................ 8,000 195
Ocular Sciences, Inc.* ....................... 10,800 351
Res-Care, Inc. ............................... 18,000 332
-------
1,693
Household Appliances / Furnishings - 2.0%
CompX International, Inc.* ................... 13,500 292
Ethan Allen Interiors, Inc. .................. 6,400 319
Furniture Brands International, Inc.* ........ 11,300 317
Interface, Inc. .............................. 14,800 299
-------
1,227
Housing - 0.5%
D.R. Horton, Inc. ............................ 14,400 301
Insurance - 2.3%
AmerUs Life Holdings, Inc. - Cl. A ........... 8,500 275
Capital Re Corp. ............................. 3,300 236
Hartford Life, Inc. - Cl. A .................. 8,800 501
Life Re Corp. ................................ 4,800 394
-------
1,406
Leisure and Recreation - 2.5%
Cinar Films, Inc.* ........................... 24,700 482
Premier Parks, Inc.* ......................... 7,000 466
ResortQuest International, Inc. .............. 1,200 20
Silverleaf Resorts, Inc.* .................... 13,600 207
Travel Services International, Inc.* ......... 11,100 365
-------
1,540
Machinery - 2.1%
Applied Power, Inc. .......................... 12,600 433
Gardner Denver Machinery, Inc.* .............. 11,350 313
ITEQ, Inc.* .................................. 20,400 152
Terex Corp.* ................................. 12,600 359
-------
1,257
Media - Publishing - 2.8%
Central Newspapers, Inc. ..................... 4,000 279
Forrester Research, Inc.* .................... 9,700 385
Icon Public, Ltd. ............................ 900,000 23
John Wiley & Sons, Inc. - Cl. A .............. 5,300 323
Outdoor Systems, Inc.* ....................... 14,932 418
Petersen Cos, Inc.* .......................... 11,800 302
-------
1,730
Media - TV / Radio - 3.1%
Adelphia Communications Corp. - Cl. A ........ 13,300 494
Clear Channel Communications, Inc.* .......... 2,948 322
Getty Images, Inc. ........................... 20,500 456
Heftel Broadcasting Corp.* ................... 6,700 300
Jacor Communications, Inc.* .................. 5,100 301
-------
1,873
Oil - Equipment and Services - 2.1%
Core Laboratories NV* ........................ 12,700 275
Dril Quip, Inc.* ............................. 8,300 218
National-Oilwell, Inc.* ...................... 12,300 330
Newpark Resources, Inc.* ..................... 19,000 211
Tuboscope Inc.* .............................. 12,100 239
-------
1,273
Oil and Natural Gas Exploration and
Production - 0.7%
Pride International, Inc.* ................... 10,400 176
Stone Energy Corp.* .......................... 7,600 270
-------
446
63
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Pollution Control - 2.3%
American Disposal Services, Inc.* .............. 10,600 $ 497
Eastern Environmental Services, Inc.* .......... 14,400 490
Verio, Inc. .................................... 17,100 425
---------
1,412
Real Estate Investment Trust - 0.6%
Glenborough Realty Trust, Inc. ................. 10,700 282
Hanover Capital Mortgage Holdings, Inc. ........ 10,100,000 96
---------
378
Retail - Department Stores - 7.3%
99 Cents Only Stores* .......................... 9,700 402
Abercrombie & Fitch Co.* ....................... 10,400 458
Brylane, Inc.* ................................. 4,800 221
CDnow, Inc.* ................................... 11,400 229
Eagle Hardware & Garden, Inc.* ................. 13,400 310
Genovese Drug Stores, Inc. ..................... 14,660 288
Hibbett Sporting Goods, Inc.* .................. 12,300 492
Linens 'N Things, Inc.* ........................ 12,100 370
Proffitt's, Inc.* .............................. 11,000 444
Software.net Corp.* ............................ 21,800 417
Stage Stores, Inc.* ............................ 11,200 507
White Capital Industries Corp.* ................ 17,100 308
---------
4,446
Retail - Drug Stores - 0.7%
Duane Reade, Inc.* ............................. 14,800 444
Retail - Food - 1.7%
Dreyer's Grand Ice Cream, Inc. ................. 16,700 336
Garden Fresh Restaurant Corp. .................. 17,200 310
Wild Oats Markets, Inc.* ....................... 13,800 419
---------
1,065
Shoe and Apparel Manufacturing - 2.3%
Ashworth, Inc.* ................................ 22,500 312
Cutter & Buck, Inc.* ........................... 17,000 459
Polo Ralph Lauren Corp. ........................ 12,300 344
Tefron, Ltd.* .................................. 11,800 260
---------
1,375
Telecommunication Services - 3.0%
Hyperion Telecommunications, Inc. .............. 9,900 155
ICG Communications, Inc. ....................... 7,300 267
Intermedia Communications, Inc.* ............... 12,600 529
Nextlink Communications, Inc.* ................. 7,200 273
Star Telecommunications, Inc. .................. 11,185 250
Winstar Communications, Inc.* .................. 7,900 339
---------
1,813
Telecommunications Equipment - 0.2%
Com21, Inc.* ................................... 1,800 38
L-3 Communications Holdings, Corp.* ............ 1,700 56
---------
94
Telephone - 2.7%
Global TeleSystems Group, Inc.* ................ 9,900 483
Metromedia Fiber Network, Inc.* ................ 15,600 727
Primus Telecomm Group, Inc. .................... 23,500 445
---------
1,655
Transportation Services - 0.6%
Motivepower Industries, Inc.* .................. 15,100 370
---------
TOTAL COMMON STOCK- ....... 99.2% 60,464
------ ---------
TOTAL INVESTMENTS- ....... 99.2% 60,464
Cash and Receivables, less payables- ....... 0.8% 490
------ ---------
NET ASSETS- 100.0% $ 60,954
====== =========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statement.
64
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.6%
Amcor, Ltd. (CONT) .............................. 3,000 $ 13
Boral, Ltd. (CONS) .............................. 11,000 21
Brambles Industries, Ltd. (DIOP) ................ 2,000 39
Broken Hill Proprietary Co., Ltd. (DIOP) ........ 10,500 89
Coca-Cola Amatil, Ltd. (FOOD) ................... 2,000 13
CRA, Ltd. (PMET) ................................ 2,400 29
CSR, Ltd. (CONS) ................................ 4,000 12
David Jones, Ltd. (RETS) ........................ 13,500 16
Lend Lease Corp. (FINL) ......................... 1,400 28
Mayne Nickless, Ltd. (COMM) ..................... 5,000 26
National Australia Bank, Ltd. (BANK) ............ 8,000 106
News Corp., Ltd. (MEDI) ......................... 13,200 108
Orica, Ltd. (DIOP) .............................. 2,200 13
Pacific Dunlop, Ltd. (DIOP) ..................... 6,700 11
Qantas Airways, Ltd. (TRAN) ..................... 9,582 14
Santos, Ltd. (OILX) ............................. 5,000 16
Telstra Corp., Ltd.* (TELS) ..................... 21,300 55
Westpac Banking Corp., Ltd. (BANK) .............. 12,000 73
WMC, Ltd. (DIOP) ................................ 8,500 26
Woolworth's, Ltd. (RETS) ........................ 4,000 13
-------
721
Belgium - 2.6%
Delhaize "Le Lion" SA (RETF) .................... 780 55
Electrabel SA (UTIE) ............................ 480 136
Fortis AG (INSU) ................................ 592 151
Fortis AG - Strip WPR* (INSU) ................... 32
Groupe Bruxelles Lambert SA (FUND) .............. 220 45
KBC Bancassurance Holding Co. (BANK) ............ 30
KBC Bankverzekeringgs (BANK) .................... 730 65
Kredietbank NV (BANK) ........................... 300 27
N.V. Union Miniere SA* (META) ................... 382 24
Petrofina SA (OILX) ............................. 220 90
Solvay SA (FINL) ................................ 640 51
Tractebel (UTIE) ................................ 500 73
-------
717
Canada - 1.6%
Agrium, Inc. (AGRI) ............................. 1,000 13
Alcan Aluminum, Ltd. (META) ..................... 800 22
Bank of Montreal (BANK) ......................... 600 33
Barrick Gold Corp. (PMET) ....................... 600 11
Canadian National Railway Co. (TRAN) ............ 500 27
Canadian Pacific, Ltd. (TRAN) ................... 1,800 51
Extendicare, Inc. (HEAS) ........................ 1,400 11
Hudson's Bay Co. (RETS) ......................... 800 19
Imasco, ltd. (DIOP) ............................. 1,000 19
Imperial Oil, Ltd. (OILX) ....................... 1,800 32
Magna International, Inc. (AUTO) ................ 200 14
Moore Corp., Ltd.* (COMM) ....................... 900 12
Newbridge Networks Corp. (TELE) ................. 300 7
Noranda, Inc. (META) ............................ 900 16
NOVA Corp. (CHEM) ............................... 2,200 25
Price REIT, Inc. (REIT) ......................... 200 15
Royal Bank of Canada (BANK) ..................... 700 42
Seagram Co., Ltd. (DIOP) ........................ 300 12
Shaw Communications, Inc. (MEDI) ................ 1,400 27
Transcanada Pipelines, Ltd. (OILE) .............. 1,100 24
Westcoast Energy, Inc. (UTIG) ................... 500 11
-------
443
Denmark - 0.3%
Den Danske Bank (BANK) .......................... 300 36
Tele Danmark A/S (TELS) ......................... 400 38
-------
74
Finland - 1.7%
Cultor Oyj (FOOD) ............................... 400 6
Merita, Ltd. - Cl. A (BANK) ..................... 7,800 52
Metsa-Serla Oy - B Shares* (PAPR) ............... 1,300 13
Outokumpu Oyj (META) ............................ 1,500 19
Oyj Nokia - K Shares - ADR (TELE) ............... 3,800 280
Sampo Insurance Co. plc (INSU) .................. 600 28
UPM-Kymmene Corp.* (PAPR) ....................... 2,000 55
Valmet Oji (DIOP) ............................... 1,000 17
-------
470
France - 4.9%
Air Liquide (CHEM) .............................. 168 28
Alcatel Alsthom (TELE) .......................... 300 61
AXA SA (INSU) ................................... 680 77
Banque Nationale de Paris (BANK) ................ 650 53
Banque Paribas (BANK) ........................... 421 45
Carrefour SA (RETF) ............................. 100 63
Compagnie de St. Gobain - ADR (CONS) ............ 356 66
Vivendi (DIOP) .................................. 512 109
Credit Local de France (FINL) ................... 300 40
Elf Aquitaine (OILX) ............................ 500 70
Eridania Beghin-Say SA (FOOD) ................... 100 22
France Telecom* (TELS) .......................... 1,300 90
Group Danone* (FOOD) ............................ 200 55
Lafarge SA (CONS) ............................... 325 34
Lagardere S.C.A. (DIOP) ......................... 900 37
Lyonnaise des Eaux SA (DIOP) .................... 495 81
Michelin (PART) ................................. 608 35
Pechiney SA (META) .............................. 661 27
Pinault-Printemps-Redoute SA (RETS) ............. 50 42
PSA Peugeot (AUTO) .............................. 320 69
Rhone-Poulenc SA (BANK) ......................... 1,076 61
SEITA (FOOD) .................................... 1,050 48
Societe Generale de Paris (BANK) ................ 285 59
Thomson CFS (ETRN) .............................. 800 30
Total SA - Cl. B (OILX) ......................... 421 55
Usinor SA (STEE) ................................ 1,100 17
-------
1,374
Germany - 5.7%
Allianz AG - New (INSU) ......................... 16 5
65
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- ----------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Germany - Continued
Allianz AG - Reg (INSU) ......................... 490 $ 164
BASF AG (CHEM) .................................. 700 33
Bayer AG (CHEM) ................................. 1,800 93
Bayerische Motoren Werke AG (AUTO) .............. 30 30
Bayerische Motoren Werke AG - New
(AUTO) ......................................... 9 7
Commerzbank AG (BANK) ........................... 400 15
Continental AG (PART) ........................... 1,300 41
Daimler-Benz AG (AUTO) .......................... 715 71
Deutsche Bank AG (BANK) ......................... 1,220 103
Deutsche Telekom AG* (TELS) ..................... 4,900 134
Dresdner Bank AG (BANK) ......................... 1,500 81
Hochtief AG (CONS) .............................. 450 22
Hoechst AG (INSU) ............................... 500 25
M.A.N. AG (DIOP) ................................ 80 31
Mannesmann AG (MACH) ............................ 1,000 103
Metro AG* (RETS) ................................ 1,010 61
Muenchener Rueckversicherungs-Gesellschaft
AG - Reg (INSU) ................................ 250 124
Preussag AG (DIOP) .............................. 120 43
RWE AG (OILX) ................................... 840 50
Schering AG (HEAL) .............................. 440 52
Siemens AG (DIOP) ............................... 1,500 92
Thyssen AG (DIOP) ............................... 150 38
VEBA AG (DIOP) .................................. 970 65
Volkswagen AG (AUTO) ............................ 107 104
-------
1,587
Hong Kong - 0.3%
Cheung Kong (Holdings), Ltd. (READ) ............. 3,000 15
Citic Pacific, Ltd. (DIOP) ...................... 2,000 4
CLP Holdings, Ltd. (UTIE) ....................... 2,000 9
Hang Seng Bank, Ltd. (BANK) ..................... 1,500 8
Hong Kong & China Gas Co., Ltd. (UTIG) .......... 7,700 9
Hong Kong & China Gas Co., Ltd. - WT99
(UTIG) ......................................... 350
Hong Kong Telecommunications, Ltd.
(TELS) ......................................... 2,800 5
Hutchison Whampoa, Ltd. (COMM) .................. 3,000 16
Johnson Electric Holdings plc (ETRN) ............ 2,000 7
South China Morning Post (Holding) Ltd.
(MEDP) ......................................... 4,000 2
Sun Hung Kai Properties, Ltd. (REIT) ............ 1,000 4
-------
79
Italy - 2.0%
Assicurazioni Generali (INSU) ................... 1,900 62
Credito Italiano SpA (BANK) ..................... 9,500 50
Danieli & Co. (MACH) ............................ 5,000 23
Ente Nazionale Idrocarburi SpA (OILS) ........... 17,000 112
Istituto Bancario San Paolo di Torino
(MEDP) ......................................... 2,000 29
Istituto Mobiliare Italiano SpA (FINL) .......... 2,000 32
Italgas SpA (UTIG) .............................. 2,700 11
La Rinascente SpA (CONS) ........................ 2,817 28
Montedison SpA* (CHEM) .......................... 30,620 38
Parmalat Finanziaria SpA (FOOD) ................. 11,000 22
Telecom Italia Mobile (TIM) SpA (FOOD) .......... 10,000 61
Telecom Italia Mobile SpA - RNC (FOOD) .......... 9,000 30
Telecom Italia SpA* (TELS) ...................... 8,000 59
-------
557
Japan - 8.0%
Amada Co., Ltd (MACH) ........................... 5,000 24
Bank of Tokyo-Mitsubishi (BANK) ................. 4,000 43
Canon Sales Co., Inc. (COMM) .................... 1,100 15
Canon, Inc. (COMM) .............................. 3,000 68
Citizen Watch Co., Ltd. (APPA) .................. 5,000 41
Dai Nippon Printng Co., Ltd. (COMM) ............. 4,000 64
Daiichi Pharmaceutical Co., Ltd. (HEAL) ......... 4,000 53
Daikin Industries, Ltd. (CONS) .................. 5,000 32
Daiwa House Industry Co., Ltd. (HOUS) ........... 3,000 27
Fanuc, Ltd. (ELEQ) .............................. 2,200 76
Fuji Photo Film (LEIS) .......................... 1,000 35
Fujitsu, Ltd. (ELEQ) ............................ 3,000 32
Hitachi, Ltd. (ETRN) ............................ 10,000 65
Honda Motor Co. (AUTO) .......................... 2,000 71
Hoya Corp. (ETRN) ............................... 1,000 28
Inax Corp. (CONS) ............................... 3,000 10
Ito-Yokado Co., Ltd. (RETS) ..................... 2,000 95
Kanegafuchi Chemical Industry (CHEM) ............ 5,000 26
Keio Teito Electric Railway (TRAN) .............. 6,000 22
Kinki Nippon Railway (TRAN) ..................... 6,000 28
Kirin Brewery Co. (FOOD) ........................ 6,000 57
Kokuyo Co. (COMM) ............................... 2,000 34
Kuraray Co., Ltd. (APPA) ........................ 6,000 51
Kyocera Corp. (ETRN) ............................ 1,000 49
Marui Co., Ltd. (RETS) .......................... 2,000 30
Matsushita Electric Industrial Co. (ETRN) ....... 5,000 81
NGK Insulators (PART) ........................... 8,000 70
Nintendo Corp., Ltd. (LEIS) ..................... 500 47
Nippon Meat Packers, Inc. (FOOD) ................ 3,000 37
Nippon Steel Co. (STEE) ......................... 4,000 7
Nippondenso Co., Ltd. (ETRN) .................... 4,000 67
Okumura Corp. (CONS) ............................ 6,000 21
Omron Corp. (ETRN) .............................. 1,000 15
Osaka Gas Co. (UTIG) ............................ 10,000 26
Sankyo Co., Ltd. (HEAL) ......................... 3,000 69
Secom Co. (ETRN) ................................ 1,000 58
Sega Enterprises (CNSU) ......................... 1,000 17
Seino Transportion (TRAN) ....................... 3,000 17
Sekisui House, Ltd. (CONS) ...................... 4,000 31
Shin-Etsu Chemical Co. (CHEM) ................... 1,000 17
Sony Corp. (ETRN) ............................... 800 69
Sumitomo Chemical Co. (CHEM) .................... 4,000 12
Sumitomo Electric Industries (TELE) ............. 4,000 41
Takeda Chemical Industries (HEAL) ............... 3,000 80
TDK Corp. (COMP) ................................ 1,000 74
66
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- -----------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
Tokio Marine & Fire Insurance Co. (INSU) ........ 4,000 $ 41
Tokyo Electric Power (UTIE) ..................... 1,500 30
Tonen Corp. (OILX) .............................. 3,000 16
Toray Industries, Inc. (APPA) ................... 12,000 63
Toshiba Corp. (ETRN) ............................ 12,000 49
Toyo Suisan Kaisha (FOOD) ....................... 3,000 18
Toyota Motor Corp. (AUTO) ....................... 3,000 78
Yamazaki Baking Co., Ltd. (FOOD) ................ 2,000 18
-------
2,245
Malaysia - 0.2%
Berjaya Sports Toto Berhad (LEIS) ............... 3,000 4
Kuala Lumpur Kepong Berhad (FOOD) ............... 4,000 6
Malayan Banking Berhad (BANK) ................... 1,400 1
Malayan Banking Berhad (BANK) ................... 1,400 1
Malaysia International Shipping Berhad
(TRAN) ......................................... 2,000 3
Nestle (Malaysia) Berhad (FOOD) ................. 1,000 5
Petronas Gas Berhad (UTIG) ...................... 3,000 6
Public Bank Berhad (BANK) ....................... 2,600 1
Resorts World Berhad (LEIS) ..................... 2,000 2
Rothmans of Pall Mall (Malaysia) Berhad
(FOOD) ......................................... 1,000 7
Sime Darby Berhad (FINL) ........................ 1,000 1
Tanjong plc (LEIS) .............................. 2,000 3
Telekom Malaysia Berhad (TELS) .................. 3,500 6
Tenaga Nasional Berhad (UTIE) ................... 4,000 5
UMW Holdings Berhad (DIOP) ...................... 3,000 1
YTL Corp. Berhad (DIOP) ......................... 6,000 5
YTL Power International Berhad* (UTIE) .......... 2,200 1
-------
58
Netherlands - 3.0%
ABN Amro Holding NV (BANK) ...................... 2,845 67
Akzo Nobel NV (CHEM) ............................ 130 29
Elsevier NV (MEDP) .............................. 2,900 44
Heineken NV (FOOD) .............................. 1,250 49
ING Groep NV (BANK) ............................. 1,679 110
KLM Royal Dutch Air Lines NV (TRAN) ............. 407 17
Koninklijke KPN NV (UTIT) ....................... 1,436 55
Koninklijke Nederlandsche Hoogovens NV
(METP) ......................................... 323 14
Philips Electronics NV (ETRN) ................... 900 76
PolyGram NV (MEDI) .............................. 500 25
Royal Dutch Petroleum Co. - NY Shares
(OILS) ......................................... 3,800 208
TNT Post Group NV (TRAN) ........................ 1,436 37
Unilever NV (CNSU) .............................. 1,200 95
-------
826
New Zealand - 1.3%
Brierley Investments, Ltd. (LEIS) ............... 71,400 35
Carter Holt Harvey, Ltd. (PAPR) ................. 34,000 30
Fletcher Challenge Building (CONS) .............. 11,000 14
Fletcher Challenge Energy (OILX) ................ 12,000 29
Fletcher Challenge Forests (PAPR) ............... 24,520 14
Fletcher Challenge Paper (PAPR) ................. 22,500 25
Lion Nathan, Ltd. (FOOD) ........................ 8,000 18
Telecom Corp. of New Zealand (TELS) ............. 48,000 198
-------
363
Norway - 0.1%
Norsk Hydro ASA (DIOP) .......................... 500 22
Singapore - 0.7%
City Developments, Ltd. (READ) .................. 3,000 8
DBS Land, Ltd. (REAL) ........................... 5,000 4
Development Bank of Singapore, Ltd.
(BANK) ......................................... 1,300 7
Elec & Eltek International Co., Ltd. (ETRN) ..... 1,100 4
Fraser & Neave, Ltd. (FOOD) ..................... 1,000 3
Keppel Corp., Ltd. - Cl. A* (DIOP) .............. 4,250 6
Keppel Land, Ltd. (DIOP) ........................ 3,000 3
Oversea-Chinese Bank Corp., Ltd. - Cl. A
(BANK) ......................................... 4,600 16
Rothmans Industries, Ltd. (FOOD) ................ 2,000 9
Singapore Airlines, Ltd. (TRAN) ................. 5,000 23
Singapore Press Holding, Ltd. (MEDP) ............ 3,276 22
Singapore Technology Engineering Ltd.
(ENGI) ......................................... 8,000 6
Singapore Telecommunications, Ltd. (TELS) ....... 33,000 47
United Overseas Bank, Ltd. (BANK) ............... 9,000 28
Venture Manufacturing. Ltd. (ETRN) .............. 2,000 4
-------
190
Sweden - 1.7%
ABB AB - Cl. A (MACH) ........................... 1,800 26
Astra AB - Cl. B (HEAL) ......................... 2,600 53
Electrolux AB - Ser. B (APPL) ................... 1,200 21
Ericsson(Lm) Telephone - Ser. B (TELE) .......... 3,500 102
Investor AB - B Shares (FUND) ................... 1,000 58
Nordbanken Holding (BANK) ....................... 7,200 53
Skandia Forsakrings AB (INSU) ................... 1,700 24
Skanska AB (CONS) ............................... 700 31
Svenska Handelsbankenn (BANK) ................... 800 37
Swedish Match (FOOD) ............................ 8,500 28
Volvo AB (AUTO) ................................. 1,700 51
-------
484
Switzerland - 4.0%
ABB AG* (ENGI) .................................. 34 50
CS Holding AG (BANK) ............................ 858 191
Holderbk Fn Glarus (CONS) ....................... 33 42
Julius Baer Holding (BANK) ...................... 15 47
Nestle SA (FOOD) ................................ 73 157
Novartis AG* (HEAL) ............................. 156 260
Roche Holding AG (HEAL) ......................... 18 177
SAirgroup (TRAN) ................................ 95 31
Saurer AG (MACH) ................................ 33 34
67
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Switzerland - Continued
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) ......... 43 $ 109
Sulzer AG (DIOP) ................................ 34 27
-------
1,125
United Kingdom - 13.8%
Abbey National First Capital BV (BANK) .......... 4,000 71
B.A.T. Industries plc (FOOD) .................... 17,900 179
Barclays Bank (BANK) ............................ 4,000 115
Bass plc (FOOD) ................................. 2,053 39
Billiton plc (META) ............................. 21,000 43
BOC Group plc (CHEM) ............................ 2,000 27
Booker plc (FOOD) ............................... 11,300 47
British Petroleum Co. plc* (OILX) ............... 13,633 199
British Sky Broadcast plc (MEDI) ................ 6,000 43
British Steel plc - ADR (STEE) .................. 40,800 90
British Telecommunications plc (TELS) ........... 15,000 185
BTR plc (DIOP) .................................. 5,687 16
Cable & Wireless plc (TELE) ..................... 3,000 36
Cadbury Schweppes plc (FOOD) .................... 5,000 77
Charter plc (DIOP) .............................. 6,372 67
Coats Viyella plc (APPA) ........................ 37,500 46
Diageo plc (FOOD) ............................... 6,739 80
FKI plc (DIOP) .................................. 20,000 58
General Electric Co. plc (ELEQ) ................. 12,400 107
Glaxo Wellcome plc - ADR (HEAL) ................. 8,300 249
Greenalls Group (RETF) .......................... 7,000 61
Hanson plc (CONS) ............................... 7,875 48
Hillsdown Holdings plc (FOOD) ................... 18,000 49
House of Fraser plc (RETS) ...................... 19,000 55
HSBC Holdings plc (BANK) ........................ 5,067 129
Inchcape plc (COMM) ............................. 10,000 32
Jefferson Smurfit Group plc (PAPR) .............. 19,000 57
Legal & General Group plc (INSU) ................ 2,500 27
Lloyds TSB Group plc (BANK) ..................... 13,000 182
Marks & Spencer plc (RETS) ...................... 17,000 155
Mirror Group plc (MEDP) ......................... 18,000 68
National Westminster Bank plc (BANK) ............ 2,500 45
Peninsular & Oriental Steam Navigation Co.
(TRAN) ......................................... 6,654 96
Prudential Corp. (INSU) ......................... 3,000 40
Reckitt & Colman plc - Cl. A (HNBA) ............. 2,425 46
Reed International plc (MEDP) ................... 8,000 72
Reuters Group plc (BUSI) ........................ 1,466 17
RJB Mining plc (META) ........................... 10,500 21
Royal & Sun Alliance Insurance Group plc
(INSU) ......................................... 4,944 51
RTZ Corp. plc (DIOP) ............................ 4,900 55
Scottish Hydro-Electric plc (UTIE) .............. 5,900 52
Sears plc (RETS) ................................ 27,000 24
Sedgwick Group plc (INSU) ....................... 15,500 34
SmithKline Beecham plc (HEAL) ................... 13,000 159
Tate & Lyle (FOOD) .............................. 9,000 71
Tesco plc (RETF) ................................ 7,000 68
Thames Water plc (AGRI) ......................... 5,000 91
Unilever (CNSU) ................................. 10,000 107
United News & Media plc (MEDP) .................. 4,000 56
Vodafone Group plc (TELS) ....................... 5,538 70
Williams plc (DIOP) ............................. 6,000 39
-------
3,851
-------
TOTAL COMMON STOCK- 54.5% 15,186
PREFERRED STOCK
Australia - 0.1%
News Corp., Ltd. (MEDI) ........................ 3,000 21
Italy - 0.1%
Fiat SpA (AUTO) ................................ 15,000 38
-------
TOTAL PREFERRED STOCK- 0.2% 59
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Australia - 3.0%
Commonwealth of Australia (GOVF)
9.75% due 03/15/02 ............................. $ 500 356
Queensland Treasury - Global Notes (GOVA)
8.00% due 05/14/03 ............................. 680 469
-------
825
Canada - 4.4%
Government of Canada - Debs. (GOVF)
4.25% due 12/01/21 ............................ 735 579
Government of Canada - Global Notes (GOVF)
9.00% due 12/01/04 ............................ 800 650
-------
1,229
Denmark - 4.5%
Kingdom of Denmark - Bonds (GOVF)
8.00% due 05/15/03 ............................. 3,700 616
Kingdom of Denmark - Debs. (GOVF)
7.00% due 12/15/04 ............................. 3,800 620
-------
1,236
France - 5.3%
Government of France - Bonds (GOVF)
8.25% due 02/27/04 ............................. 2,870 562
7.75% due 10/25/05 ............................. 4,600 906
-------
1,468
Germany - 9.2%
Federal Republic of Germany - Bonds (GOVF)
8.25% due 09/20/01 ............................. 1,900 1,178
6.00% due 06/20/16 ............................. 350 214
6.00% due 09/15/03 ............................. 1,400 831
8.00% due 07/22/02 ............................. 550 346
-------
2,569
68
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Italy - 2.5%
Republic of Italy - Debs. (GOVF)
11.00% due 06/01/03 ............................ $980,000 $ 701
Netherlands - 3.7%
Dutch Government (GOVF)
5.75% due 02/15/07 ............................. 300 158
Government of Netherlands - Bonds (GOVF)
7.00% due 02/15/03 ............................. 710 386
Government of Netherlands - Debs. (GOVF)
6.50% due 04/15/03 ............................. 930 497
-------
1,041
Spain - 2.7%
Government of Spain (GOVF)
10.50% due 10/30/03 ............................ 90,000 746
Sweden - 1.1%
Government of Sweden - Bonds (GOVF)
10.25% due 05/05/03 ............................ 2,000 311
United Kingdom - 6.5%
U.K. Treasury - Bonds (GOVF)
6.75% due 11/26/04 ............................. 579 1,005
9.00% due 10/13/08 ............................. 388 803
-------
1,808
-------
TOTAL PUBLICLY-TRADED BONDS- 42.9% 11,934
Shares
WARRANTS
Belgium - 0.0%
Societe Generale de Belgique - PW99 (DIOP)
expires 11/30/99 ............................... 70 0
France - 0.0%
AXA-UAP (INSU)
expires 1/07/99 ................................ 480 0
Vivendi (DIOP)
expires 5/02/01 (Cost $1) ..................... 512 1
-------
TOTAL WARRANTS- 0.0% 1
RIGHTS
Germany - 0.0%
Metro AG (RETS)
Expires 7/2/98 ................................. 1,010 0
COMMERCIAL PAPER - 1.2%
U.S. West Commerce, Inc.
6.1% due 07/01/98 .............................. 332 332
-------- -------
TOTAL INVESTMENTS- 98.8% 27,512
Cash and Receivables, less payables- 1.2% 342
-------- -------
NET ASSETS- 100.0% $27,854
======== =======
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market %
Industry Industry Value Long-Term
Abbreviation (000's) Investments
Foreign Governmental ......... GOVF $11,465 42.2%
Banks ........................ BANK 2,053 7.6%
Food, Beverage and
Tobacco ..................... FOOD 1,223 4.5%
Health Care Products ......... HEAL 1,152 4.2%
Diversified Operations ....... DIOP 988 3.6%
Telecommunications
Services .................... TELS 978 3.6%
Insurance .................... INSU 962 3.5%
Electronic Products and
Services .................... ETRN 602 2.2%
Oil and Natural Gas
Exploration and
Production .................. OILX 557 2.0%
Automobile ................... AUTO 533 2.0%
Telecommunication
Equipment ................... TELE 527 1.9%
Retail - Department Stores ... RETS 510 1.9%
Government Agencies .......... GOVA 469 1.7%
Construction ................. CONS 384 1.4%
Transportation Services ...... TRAN 366 1.3%
Chemicals .................... CHEM 328 1.2%
Oils ......................... OILS 320 1.2%
Electric Power ............... UTIE 306 1.1%
Media - Publishing ........... MEDP 293 1.1%
Retail - Food ................ RETF 275 1.0%
Commercial Services .......... COMM 267 1.0%
Media - TV / Radio ........... MEDI 224 0.8%
Consumer - Miscellaneous ..... CNSU 219 0.8%
Electrical Equipment ......... ELEQ 215 0.8%
Machinery .................... MACH 210 0.8%
Shoe and Apparel
Manufacturing ............... APPA 201 0.7%
Paper and Forest Products .... PAPR 194 0.7%
Metals and Mining ............ META 172 0.6%
Financial Services ........... FINL 152 0.6%
Steel ........................ STEE 152 0.6%
Automotive and Truck
Parts ....................... AUTO 146 0.5%
Leisure and Recreation ....... LEIS 126 0.5%
Agricultural Operations ...... AGRI 104 0.4%
Computer Equipment ........... SOFT 74 0.3%
Natural Gas Distribution ..... UTIG 63 0.2%
Engineering and
Construction ................ ENGI 56 0.2%
Telephone .................... UTIT 55 0.2%
Cosmetic and Personal
Care ........................ HNBA 46 0.2%
Metals and Mining ............ METS 29 0.1%
Housing ...................... HOUS 27 0.1%
Oil - Equipment and
Services .................... OILE 24 0.1%
Real Estate Development ...... READ 23 0.1%
Household Appliances /
Furnishings ................. APPL 21 0.1%
Real Estate Investment
Trust ....................... REIT 19 0.1%
Business Services ............ BUSI 17 0.1%
Metal Production and
Fabrication ................. METP 14 0.1%
Containers ................... CONT 13 0.0%
Health Care Services ......... HEAS 11 0.0%
Precious/Metals/
Gems/Stones ................. PMET 11 0.0%
Real Estate Operations ....... REAL 4 0.0%
-------- -----
$27,180 100.0%
======= =====
69
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Automobile - 2.1%
Porsche AG - Preferred ................... 458 $ 1,321
Banks - 7.7%
M & T Bank Corp. ......................... 2,185 1,211
Star Banc Corp. .......................... 28,365 1,812
U.S. Trust Corp. ......................... 25,000 1,906
-------
4,929
Business Services - 0.5%
Robert Half International, Inc.* ......... 5,175 289
Commercial Services - 11.3%
Apollo Group, Inc. - Cl. A* .............. 99,179 3,279
Capita Group plc ......................... 119,767 1,034
Gartner Group, Inc. - Cl. A .............. 17,465 611
HA-LO Industries, Inc.* .................. 9,550,000 297
ITT Educational Services, Inc. ........... 41,755 1,347
Snyder Communications, Inc.* ............. 14,345 631
-------
7,199
Computer Software and Services - 5.9%
America Online, Inc.* .................... 11,585 1,228
At Home Corp. - Ser. A ................... 6,450 305
Cadence Design Systems, Inc.* ............ 71,572 2,237
-------
3,770
Electric Power - 0.9%
AES Corp.* ............................... 11,290 593
Electronic Products and Services - 6.7%
Maxim Integrated Products, Inc.* ......... 38,165 1,209
Vitesse Semiconductor Corporation* ....... 99,235 3,064
-------
4,273
Financial Services - 10.3%
Capital One Financial Corp. .............. 2,935 365
CIT Group Holdings, Inc. - Cl. A ......... 3,100,000 3,099
HealthCare Financial Partners, Inc.* ..... 11,110 681
Paychex, Inc. ............................ 60,315 2,454
-------
6,599
Health Care Products - 9.7%
Alza Corp.* .............................. 19,515 844
Incyte Pharmaceuticals, Inc.* ............ 3,270 111
MedImmune, Inc.* ......................... 23,770 1,483
Sepracor, Inc.* .......................... 14,935 620
Sofamor Danek Group, Inc.* ............... 28,820 2,495
Watson Pharmaceuticals, Inc.* ............ 13,320 622
-------
6,175
Health Care Services - 5.0%
Omnicare, Inc. ........................... 83,660 3,190
Insurance - 1.8%
Progressive Corp. ........................ 8,125 1,146
Leisure and Recreation - 5.3%
Premier Parks, Inc.* ..................... 20,200 1,346
Royal Caribbean Cruises, Ltd. ............ 9,570 761
SFX Entertainment, Inc. - Cl. A* ......... 28,375 1,301
-------
3,408
Media-Publishing - 2.7%
Outdoor Systems, Inc.* ................... 62,590 1,753
Media-TV/Radio -18.9%
Capstar Broadcasting Corp. - Cl. A ....... 42,090 1,058
Chancellor Media Corp.* .................. 50,870 2,526
Clear Channel Communications, Inc.* ...... 10,755 1,174
Heftel Broadcasting Corp.* ............... 74,335 3,326
Jacor Communications, Inc.* .............. 20,090 1,185
TCA Cable TV, Inc. ....................... 19,365 1,162
Univision Communications, Inc. - Cl. A* .. 44,933 1,674
-------
12,105
Personal and Commercial Lending - 0.0%
Newcourt Credit Group, Inc. .............. 600 29
Retail-Department Stores - 2.2%
Fastenal Co. ............................. 12,736 591
MSC Industrial Direct Co., Inc.* ......... 29,570 843
-------
1,434
Retail-Food - 7.0%
J.D. Wetherspoon plc ..................... 387,019 1,861
PizzaExpress plc ......................... 182,426 2,626
-------
4,487
Transportation Services - 1.3%
Ryanair Holdings plc - ADR* .............. 23,811 848
-------
TOTAL COMMON STOCK- 99.3% 63,548
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Federal Mortgage Corp. - Disc. Note
0.0% due 7/1/98 ......................... $ 700 700
---------- -------
TOTAL INVESTMENTS- 100.4% 64,248
Payables, less cash and receivables- (0.4)% (266)
---------- -------
NET ASSETS- 100.0% $63,982
========== =======
* Non-income producing security.
ADR -American Depository Receipt
See notes to financial statement.
70
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.5%
Allied Signal, Inc. ...................... 12,700 $ 564
Auto and Truck Parts - 2.2%
General Motors Corp. ..................... 11,700 782
Genuine Parts Co. ........................ 22,300 771
TRW, Inc. ................................ 12,400 677
--------
2,230
Banks - 9.1%
Banc One Corp. ........................... 15,700 876
BankBoston Corp. ......................... 10,200 567
Bankers Trust New York Corp. ............. 6,800 789
Chase Manhattan Corp. .................... 10,600 800
First Union Corp. ........................ 12,970 756
Fleet Financial Group, Inc. .............. 9,700 810
J.P. Morgan & Co., Inc. .................. 8,900 1,043
Mellon Bank Corp. ........................ 25,900 1,803
Mercantile Bankshares Corp. .............. 10,700 373
National City Corp. ...................... 7,000 497
PNC Bank Corp. ........................... 7,000 377
Wells Fargo & Co. ........................ 1,800 664
--------
9,355
Business Services - 1.2%
Dun & Bradstreet Corp. ................... 17,000 614
H & R Block, Inc. ........................ 14,200 598
--------
1,212
Chemicals - 5.8%
Dow Chemical Co. ......................... 13,900 1,344
E.I. du Pont de Nemours & Co. ............ 13,400 1,000
Eastman Chemical Co. ..................... 3,700 230
Great Lakes Chemical Corp. ............... 15,500 611
Hercules, Inc. ........................... 19,000 781
Imperial Chemical Industries plc - ADR ... 7,300 471
Lubrizol Corp. ........................... 11,100 336
Nalco Chemical Co. ....................... 14,200 499
Octel Corp. .............................. 3,875 77
Witco Corp. .............................. 20,100 588
--------
5,937
Commercial Services - 0.7%
R.R. Donnelley & Sons Co. ................ 16,800 769
Computer Equipment - 0.4%
Hewlett-Packard Co. ...................... 7,400 443
Construction - 0.3%
Armstrong World Industries, Inc. ......... 5,100 344
Consumer - Miscellaneous - 1.0%
Fortune Brands, Inc. ..................... 16,900 650
Tupperware Corp. ......................... 13,600 382
--------
1,032
Cosmetics and Personal Care Products - 1.4%
Bausch & Lomb, Inc. ...................... 11,100 556
International Flavors & Fragrances,
Inc. ..................................... 20,600 895
--------
1,451
Diversified Operations - 5.0%
Cooper Industries, Inc. .................. 9,500 522
General Electric Co. ..................... 11,000 1,001
Lonrho Africa plc ........................ 13,200 16
Lonrho plc ............................... 19,800 93
Minnesota Mining & Manufacturing Co. ..... 10,300 847
Olin Corp. ............................... 16,100 671
Pall Corp. ............................... 27,400 562
PPG Industries, Inc. ..................... 10,700 744
Tomkins plc .............................. 128,400 697
--------
5,153
Electric Power - 6.4%
Baltimore Gas & Electric Co. ............. 10,500 326
Central & South West Corp. ............... 9,200 247
Dominion Resources, Inc. ................. 12,400 505
DQE, Inc. ................................ 12,700 457
Duke Energy Co. .......................... 14,800 877
Entergy Corp. ............................ 15,600 449
Firstenergy Corp. ........................ 24,595 756
GPU, Inc. ................................ 7,600 287
Houston Industries, Inc. ................. 20,500 633
PacifiCorp ............................... 17,300 392
Peco Energy Co. .......................... 15,500 453
Southern Co. ............................. 26,800 742
Teco Energy, Inc. ........................ 15,000 402
--------
6,526
Electrical Equipment - 0.7%
Unicom Corp. ............................. 20,000 701
Electronic Products and Services - 1.0%
AMP, Inc. ................................ 19,300 663
Hubbell, Inc. - Cl. B .................... 9,100 379
--------
1,042
Food, Beverage and Tobacco - 7.9%
Anheuser-Busch Cos., Inc. ................ 23,300 1,100
Brown-Forman Corp. ....................... 10,000 643
General Mills, Inc. ...................... 15,200 1,039
H.J. Heinz Co. ........................... 11,700 657
Kellogg Co. .............................. 12,400 466
McCormick & Co., Inc. .................... 21,900 782
Philip Morris Cos., Inc. ................. 31,500 1,240
Quaker Oats Co. .......................... 14,400 791
RJR Nabisco Holdings Corp. ............... 19,700 468
Sara Lee Corp. ........................... 3,700 207
UST, Inc. ................................ 26,200 707
--------
8,100
Government Agencies - 0.9%
Federal National Mortgage Assoc. ......... 15,200 923
71
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - 5.5%
Abbott Laboratories .................... 14,400 $ 589
American Home Products Corp.* .......... 29,600 1,532
Amgen, Inc.* ........................... 4,600 301
Baxter International, Inc. ............. 5,800 312
Johnson & Johnson ...................... 4,200 310
Pharmacia & Upjohn, Inc. ............... 26,800 1,236
U.S. Surgical Corp. .................... 22,300 1,017
Smith & Nephew plc ..................... 114,700 287
-------
5,584
Household Appliances / Furnishings - 0.7%
Whirlpool Corp. ........................ 11,000 756
Insurance - 5.8%
American General Corp. ................. 13,100 933
EXEL, Ltd. ............................. 8,700 677
Hilb, Rogal & Hamilton Co. ............. 600 9
Lincoln National Corp. ................. 6,400 585
Safeco Corp. ........................... 19,400 881
St. Paul Cos., Inc. .................... 29,152 1,226
Transamerica Corp. ..................... 5,400 622
Travelers Group, Inc. .................. 11,750 712
Willis Corroon Group plc ............... 25,800 324
-------
5,969
Leisure and Recreation - 1.4%
Eastman Kodak Co. ...................... 13,500 986
Hilton Hotels Corp. .................... 15,300 436
-------
1,422
Media - Publishing - 1.9%
Dow Jones & Co., Inc. .................. 11,400 635
Knight-Ridder, Inc. .................... 16,600 914
Readers Digest Association,
Inc. - Cl. A .......................... 15,100 410
-------
1,959
Metals and Mining - 1.1%
Inco, Ltd. ............................. 19,900 271
Phelps Dodge Corp. ..................... 7,000 401
Reynolds Metals Co. .................... 8,100 453
-------
1,125
Oil and Natural Gas Exploration and
Production - 11.6%
Amerada Hess Corp. ..................... 14,300 777
Amoco Corp. ............................ 33,800 1,407
Atlantic Richfield Co. ................. 17,000 1,328
British Petroleum Co. plc - ADR ........ 7,000 618
Chevron Corp. .......................... 15,400 1,279
Exxon Corp. ............................ 22,300 1,590
Mobil Corp. ............................ 14,800 1,134
Occidental Petroleum Corp. ............. 20,900 564
Phillips Petroleum Co. ................. 9,500 458
Royal Dutch Petroleum Co. - NY Shares .. 14,000 767
Texaco, Inc. ........................... 19,100 1,140
Unocal Corp. ........................... 9,300 333
USX-Marathon Group ..................... 14,200 487
-------
11,882
Paper and Forest Products - 2.9%
Consolidated Papers, Inc. .............. 20,900 570
Georgia Pacific Corp. .................. 5,000 295
Georgia Pacific Corp.* ................. 3,100 71
International Paper Co. ................ 11,000 473
Kimberly-Clark Corp. ................... 17,300 794
Union Camp Corp. ....................... 15,100 749
-------
2,952
Pollution Control - 1.5%
Browning-Ferris Industries, Inc. ....... 19,700 685
Waste Management, Inc. ................. 24,400 854
-------
1,539
Precious Metals/Gems/Stones - 0.4%
Newmont Mining Corp. ................... 19,700 465
Real Estate Investment Trust - 2.9%
Crescent Real Estate Equities, Inc. .... 16,400 551
Security Capital Pacific Trust ......... 9,600 216
Simon DeBartolo Group, Inc. ............ 26,796 871
Starwood Hotels & Resorts .............. 23,429 1,132
Weingarten Realty Investors ............ 4,700 197
-------
2,967
Real Estate Operations - 0.2%
Rouse Co. .............................. 5,600 176
Retail - Department Stores - 1.3%
J.C. Penney, Inc. ...................... 11,200 810
May Department Stores Co. .............. 7,900 517
-------
1,327
Shoe and Apparel Manufacturing - 0.1%
Unifi, Inc. ............................ 2,500 86
Steel - 0.4%
USX-US Steel Group, Inc. ............... 11,400 376
Telecommunication Services - 1.0%
BCE, Inc. .............................. 14,300 610
Frontier Corp. ......................... 13,800 435
-------
1,045
Telephone - 7.1%
Alltel Corp. ........................... 31,900 1,483
AT&T Corp. ............................. 17,100 977
Bell Atlantic Corp. .................... 17,600 803
BellSouth Corp. ........................ 11,200 752
GTE Corp. .............................. 20,000 1,112
SBC Communications, Inc. ............... 28,066 1,123
72
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Telephone - Continued
Southern New England
Telecommunications Corp. .............. 8,100 $ 531
U.S. West, Inc. ........................ 9,700 456
--------
7,237
Transportation Services - 3.2%
Alexander & Baldwin, Inc. .............. 6,500 189
Burlington Northern Santa Fe ........... 5,300 520
GATX Corp. ............................. 8,800 386
Norfolk Southern Corp. ................. 39,300 1,172
Union Pacific Corp. .................... 23,500 1,037
--------
3,304
--------
TOTAL COMMON STOCK- 93.5% 95,953
Par
Value
(000's)
PUBLICLY-TRADED BONDS - 0.7%
U.S. Treasury - Notes
5.75% due 08/15/03 .................... $ 150 151
5.87% due 11/15/99 .................... 200 201
6.5% due 05/31/01 ..................... 200 205
7.0% due 07/15/06 ..................... 150 164
--------
721
COMMERCIAL PAPER - 5.6%
Ciesco L Puerto
5.51% due 07/22/98 .................... 855 852
Ciesco L.P. ............................
5.5% due 07/20/98 ..................... 275 274
Kellogg Co. ............................
5.51% due 07/24/98 .................... 2,390 2,382
Merck & Co., Inc. ......................
6.1% due 07/01/98 ..................... 242 242
Province De Quebec
5.5% due 08/24/98 ..................... 2,000 1,984
--------
5,734
------- --------
TOTAL INVESTMENTS- 99.8% 102,408
Cash and Receivables, less payables- 0.2% 177
------- --------
NET ASSETS- 100.0% $102,585
======= ========
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statement.
73
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER
Automobile - 3.2%
American Honda Finance Corp.
5.52% due 07/09/98 .......................... $ 3,000 $ 2,996
5.53% due 09/11/98 .......................... 2,803 2,772
BMW U.S. Capital Corp.
6.4% due 07/01/98 ........................... 3,000 3,000
--------
8,768
Banks - 14.1%
Banco Nacional De Mexico SA
5.38% due 07/21/98 .......................... 1,200 1,196
5.4% due 07/21/98 ........................... 3,800 3,789
BT Bank of Canada
5.61% due 08/19/98 .......................... 10,000 10,067
Commonwealth Bank of Australia
5.45% due 10/19/98 .......................... 3,000 2,950
Den Danske Corp.
5.48% due 09/28/98 .......................... 1,634 1,612
5.51% due 08/10/98 .......................... 2,950 2,932
5.51% due 08/10/98 .......................... 2,617 2,601
Deutsche Bank Finance, Inc.
5.63% due 07/08/98 .......................... 3,000 2,997
National Bank of Canada
5.7% due 03/05/99 ........................... 5,000 5,091
Westpac Banking Corp. NY - Deposit Notes
5.66% due 03/22/99 .......................... 5,000 5,079
--------
38,314
Brokerage and Investment Management - 14.3%
Goldman Sachs Group
5.68% due 03/26/99 .......................... 7,000 7,006
Lehman Brothers, Inc.
7.62% due 08/01/98 .......................... 1,000 1,033
Preferred Receivables Funding Corp.
5.52% due 08/05/98 .......................... 2,000 1,989
5.55% due 10/05/98 .......................... 6,000 5,912
Prudential Funding Corp.
5.51% due 10/14/98 .......................... 10,000 9,840
Salomon Smith Barney Hldgs
5.45% due 07/07/98 .......................... 5,000 4,995
5.49% due 07/09/98 .......................... 3,000 2,996
5.51% due 07/06/98 .......................... 5,000 4,996
--------
38,767
Chemicals - 3.4%
Formosa Plastics Corp. A
5.52% due 09/16/98 .......................... 4,245 4,195
Formosa Plastics Corp. B
5.54% due 09/25/98 .......................... 5,000 4,934
--------
9,129
Diversified Operations - 2.2%
American Petrofina Holding Co.
5.6% due 09/11/98 ........................... 6,000 5,933
Electric Power - 1.8%
General Electric Credit Capital of Puerto Rico
5.51% due 08/12/98 .......................... 5,000 4,968
Financial Services - 47.7%
Alpine Securitization
5.52% due 07/15/98 .......................... 2,000 1,996
5.53% due 07/23/98 .......................... 3,000 2,990
5.54% due 07/23/98 .......................... 1,300 1,296
Assets Securitization Corp.
5.52% due 08/06/98 .......................... 3,977 3,955
5.52% due 08/18/98 .......................... 6,000 5,957
Beneficial Corp.
5.5% due 07/20/98 ........................... 5,000 4,985
5.54% due 08/12/98 .......................... 3,500 3,477
Chevron UK Investment PLC
5.48% due 09/23/98 .......................... 1,000 987
Citibank Cd
5.62% due 09/30/98 .......................... 10,000 10,048
Enterprise Funding Corp.
5.5% due 07/15/98 ........................... 1,297 1,294
5.5% due 08/28/98 ........................... 1,321 1,309
5.53% due 08/13/98 .......................... 3,002 2,982
5.54% due 08/07/98 .......................... 1,200 1,193
5.55% due 07/06/98 .......................... 2,000 1,998
Falcon Asset Securitization Corp.
5.53% due 07/20/98 .......................... 1,716 1,711
5.53% due 08/03/98 .......................... 5,452 5,425
Ford Motor Credit Co.
6.0% due 07/02/98 ........................... 1,532 1,532
General Electric Capital Corp.
5.52% due 09/24/98 .......................... 1,000 987
Greenwich Funding Corp.
5.5% due 07/23/98 ........................... 1,193 1,189
5.55% due 12/18/98 .......................... 2,787 2,714
5.56% due 07/01/98 .......................... 1,608 1,608
Lehman Brothers Holdings
5.4% due 07/17/98 ........................... 1,500 1,496
5.5% due 09/18/98 ........................... 1,500 1,482
5.51% due 08/17/98 .......................... 4,000 3,971
5.55% due 07/13/98 .......................... 4,000 3,993
5.56% due 08/25/98 .......................... 1,500 1,487
Merrill Lynch & Co., Inc.
5.43% due 10/15/98 .......................... 382 376
5.49% due 07/24/98 .......................... 2,000 1,993
5.52% due 09/15/98 .......................... 935 924
5.52% due 10/30/98 .......................... 2,940 2,885
5.53% due 09/01/98 .......................... 1,399 1,386
5.53% due 09/23/98 .......................... 5,000 4,935
5.55% due 07/27/98 .......................... 1,221 1,216
Monte Rosa Capital Corp.
5.54% due 09/11/98 .......................... 1,541 1,524
5.55% due 08/11/98 .......................... 5,000 4,968
5.57% due 08/27/98 .......................... 3,013 2,986
5.6% due 08/28/98 ........................... 3,500 3,468
74
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - CONTINUED
Financial Services - Continued
Pemex Capital, Inc.
5.52% due 09/18/98 ......................... $ 10,000 $ 9,880
Rabobank USA Financial Corp.
5.5% due 10/20/98 .......................... 2,000 1,966
Sigma Finance Corp.
5.59% due 07/17/98 ......................... 655 653
5.59% due 08/07/98 ......................... 480 477
5.59% due 08/28/98 ......................... 636 630
Sigma Finance, Inc.
5.49% due 07/07/98 ......................... 3,000 2,997
5.51% due 09/30/98 ......................... 2,388 2,355
5.53% due 08/25/98 ......................... 1,455 1,443
5.54% due 09/30/98 ......................... 1,112 1,096
Twin Towers, Inc.
5.49% due 07/10/98 ......................... 928 927
5.54% due 07/13/98 ......................... 4,107 4,099
5.54% due 07/17/98 ......................... 2,000 1,995
5.63% due 08/07/98 ......................... 2,000 1,988
--------
129,229
Foreign - 1.1%
Svenska Handelbanken, Inc.
5.52% due 09/23/98 ......................... 1,000 987
5.53% due 07/29/98 ......................... 2,000 1,992
--------
2,979
Personal and Commercial Lending - 5.6%
Paccar Financial Corp.
5.42% due 08/05/98 ......................... 5,000 4,974
Royal Bank of Canada
5.63% due 02/26/99 ......................... 10,000 10,191
--------
15,165
Retail - Department Stores - 4.0%
JC Penney Funding Corp.
5.5% due 08/03/98 .......................... 3,804 3,785
Sears, Roebuck Acceptance Corp.
5.52% due 08/24/98 ......................... 7,000 6,942
--------
10,727
Transportation Services - 2.6%
Chevron Transport Corp.
5.47% due 09/17/98 ......................... 2,085 2,060
5.52% due 07/23/98 ......................... 5,000 4,983
--------
7,043
--------
TOTAL COMMERCIAL PAPER- 100.0% 271,022
------ --------
TOTAL INVESTMENTS- 100.0% 271,022
Payables, less cash and receivables - 0.0% (74)
------ --------
NET ASSETS- 100.0% $270,948
====== ========
See notes to financial statement.
75
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 2.7%
AutoZone, Inc.* ........................... 60,000 $ 1,916
Lear Corp.* ............................... 14,000 719
-------
2,635
Chemicals - 6.9%
Cabot Corp. ............................... 50,300 1,625
Millenium Chemicals, Inc. ................. 59,500 2,016
Morton International, Inc. ................ 51,700 1,293
Praxair, Inc. ............................. 41,700 1,952
-------
6,886
Commercial Services - 3.1%
ACNielson Corp.* .......................... 52,700 1,331
R.R. Donnelley & Sons Co. ................. 37,300 1,706
-------
3,037
Computer Equipment - 1.7%
Quantum Corp. ............................. 79,100 1,641
Containers - 4.0%
Crown Cork & Seal Co., Inc. ............... 52,000 2,470
Owens-Illinois, Inc.* ..................... 32,900 1,472
-------
3,942
Diversified Operations - 6.7%
Coltec Industries* ........................ 71,100 1,413
Corning, Inc. ............................. 22,100 768
Eaton Corp. ............................... 14,000 1,089
Raychem Corp. ............................. 64,800 1,916
Tenneco, Inc. ............................. 38,000 1,446
-------
6,632
Electrical Equipment - 1.3%
Unicom Corp. .............................. 37,000 1,297
Electronic Products and Services - 9.5%
International Game Technology ............. 40,000 970
KLA Instruments Corp.* .................... 71,400 1,977
Millipore Corp. ........................... 21,300 580
National Semiconductor Corp.* ............. 90,800 1,198
Sunstrand Corp. ........................... 25,900 1,483
Teradyne, Inc.* ........................... 63,000 1,685
Varian Associates, Inc. ................... 39,900 1,556
-------
9,449
Financial Services - 1.5%
Heller Financial, Inc. .................... 51,000 1,530
Food, Beverage and Tobacco - 1.9%
UST, Inc. ................................. 70,200 1,895
Health Care Services - 4.9%
Biogen, Inc.* ............................. 58,500 2,867
Wellpoint Health Networks, Inc. ........... 27,500 2,035
-------
4,902
Insurance - 8.4%
Ace, Ltd.* ................................ 40,000 1,560
EXEL, Ltd. ................................ 38,900 3,027
Orion Capital Corp. ....................... 42,600 2,380
PartnerRe, Ltd.* .......................... 26,400 1,346
-------
8,313
Leisure and Recreation - 4.8%
Host Marriott Corp.* ...................... 166,700 2,969
Mirage Resorts, Inc. ...................... 86,000 1,833
-------
4,802
Machinery - 1.2%
McDermott International, Inc. ............. 35,000 1,205
Media - 1.5%
E.W. Scripps Co. - Cl. A .................. 27,300 1,496
Media - Publishing - 1.3%
Knight-Ridder, Inc. ....................... 24,300 1,338
Oil - Equipment and Services - 5.0%
Cooper Cameron Corp.* ..................... 33,400 1,704
Noble Affiliates, Inc. .................... 31,900 1,212
Tosco Corp. ............................... 69,000 2,027
-------
4,943
Oil and Natural Gas Exploration and
Production - 3.2%
Eex Corp. ................................. 100,000 938
Oryx Energy Co.* .......................... 101,800 2,252
-------
3,190
Paper and Forest Products - 5.3%
Mead Corp. ................................ 44,400 1,410
Temple-Inland, Inc. ....................... 32,900 1,772
Union Camp Corp. .......................... 41,300 2,050
-------
5,232
Personal and Commercial Lending - 2.3%
SLM Holding Corp. ......................... 46,600 2,284
Real Estate Development - 1.8%
Catellus Development Corp.* ............... 102,700 1,817
Retail - Department Stores - 5.3%
Consolidated Stores Corp. ................. 50,000 1,813
Footstar, Inc.* ........................... 1
Harcourt General, Inc. .................... 57,500 3,421
-------
5,234
Retail - Drug Stores - 0.7%
Duane Reade, Inc.* ........................ 23,600 708
Shoe and Apparel Manufacturing - 1.6%
Unifi, Inc. ............................... 46,600 1,596
Steel - 2.3%
AK Steel Holding Corp. .................... 77,200 1,380
76
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Steel - Continued
Nucor Corp. ............................... 19,400 $ 892
-------
2,272
Transportation Services - 3.3%
Continental Airlines, Inc. - Cl. B* ....... 24,200 1,473
FDX Corp. ................................. 28,000 1,757
-------
3,230
-------
TOTAL COMMON STOCK- 92.2% 91,506
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 7.8%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ....................... $ 7,724 7,724
-------- -------
TOTAL INVESTMENTS- 100.0% 99,230
Payables, less cash and receivables- 0.0% (15)
-------- -------
NET ASSETS- 100.0% $99,215
======== =======
* Non-income producing security.
See notes to financial statement.
77
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 0.8%
Tower Automotive, Inc.* ................. 42,300 $ 1,814
Banks - 6.9%
Charter One Financial, Inc. ............. 66,400 2,237
First American Corp. .................... 47,000 2,262
Northern Trust Corp. .................... 30,400 2,318
Regions Financial Corp. ................. 52,600 2,160
Republic New York Corp. ................. 37,000 2,329
Sovereign Bancorp, Inc. ................. 126,000 2,059
TCF Financial Corp. ..................... 65,900 1,944
--------
15,309
Brokerage and Investment Management - 1.0%
T. Rowe Price Associates, Inc. .......... 61,000 2,291
Business Services - 1.3%
Interim Services, Inc. .................. 87,600 2,814
Commercial Services - 3.1%
Avis Rental A Car, Inc.* ................ 103,750 2,568
Gartner Group, Inc. - Cl. A ............. 70,000 2,450
Lamar Advertising Co.* .................. 49,000 1,758
--------
6,776
Computer Equipment - 1.7%
Lexmark International Group, Inc. -
Cl. A* .................................. 51,100 3,117
Quantum Corp. ........................... 26,500 550
--------
3,667
Computer Software and Services - 13.6%
Aspen Technologies, Inc.* ............... 41,200 2,081
BEA Systems, Inc. ....................... 126,225 2,895
Cambridge Technology Partners ........... 44,600 2,436
Citrix Systems, Inc.* ................... 35,200 2,407
Compuware Corp.* ........................ 42,300 2,162
EMC Corp.* .............................. 43,000 1,927
Excite, Inc.* ........................... 28,060 2,624
Keane, Inc.* ............................ 65,500 3,668
Network Associates, Inc. ................ 63,700 3,050
Saville Systems Ireland plc - ADR* ...... 53,700 2,692
SunGard Data Systems, Inc. .............. 16,000 614
Unisys Corp.* ........................... 128,375 3,626
--------
30,182
Consumer - Miscellaneous - 1.9%
Personnel Group of America, Inc. ........ 106,900 2,138
Select Appointments Holdings Public
Ltd., Co. - ADR ........................ 71,700 2,115
--------
4,253
Containers - 0.8%
EarthShell Corp. ........................ 18,500 180
Owens-Illinois, Inc.* ................... 36,800 1,647
--------
1,827
Diversified Operations - 0.5%
Ruddick Corp. ........................... 63,000 1,142
Electronic Products and Services - 4.8%
Artesyn Technologies, Inc. .............. 86,500 1,384
Berg Electronics Corp.* ................. 135,300 2,647
Jabil Circuit, Inc.* .................... 65,775 2,174
Sterling Commerce, Inc.* ................ 48,800 2,367
Waters Corp. ............................ 34,900 2,057
--------
10,629
Financial Services - 2.1%
CIT Group, Inc. - Cl. A* ................ 56,400 2,115
CMAC Investment Corp. ................... 41,000 2,521
--------
4,636
Food, Beverage and Tobacco - 2.3%
Aurora Foods, Inc. ...................... 62,800 1,327
International Home Foods, Inc.* ......... 65,500 1,490
Suiza Foods Corp.* ...................... 38,525 2,299
--------
5,116
Health Care Products - 7.1%
Dura Pharmaceuticals, Inc. .............. 51,000 1,141
Elan Corp. plc* ......................... 34,200 2,200
Forest Laboratories, Inc.* .............. 87,000 3,110
Mylan Laboratories, Inc. ................ 91,225 2,743
Rexall Sundown, Inc.* ................... 70,500 2,485
Sofamor Danek Group, Inc.* .............. 19,200 1,662
Twinlab Corp. ........................... 55,900 2,442
--------
15,783
Health Care Services - 5.0%
Genesis Health Ventures, Inc.* .......... 40,500 1,013
Genzyme Corp. ........................... 79,000 2,019
Health Care & Retirement Corp.* ......... 7,600 300
Health Management Associates, Inc. -
Cl. A* ................................. 63,800 2,133
HEALTHSOUTH Corp.* ...................... 40,000 1,067
Manor Care, Inc. ........................ 21,950 844
Omnicare, Inc. .......................... 45,360 1,724
Quorum Health Group, Inc. ............... 71,600 1,897
--------
10,997
Household Appliances/Furnishings - 1.9%
Furniture Brands International, Inc.* ... 73,000 2,049
Leggett & Platt, Inc. ................... 84,200 2,105
--------
4,154
Insurance - 8.5%
Ace, Ltd.* .............................. 60,600 2,363
Allmerica Financial Corp. ............... 42,000 2,730
Executive Risk, Inc. .................... 33,000 2,434
Life Re Corp. ........................... 29,100 2,386
Mid Ocean, Ltd. ......................... 27,200 2,135
Mutual Risk Management, Ltd. ............ 64,900 2,365
78
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Insurance - Continued
ReliaStar Financial Corp. ..................... 52,000 $ 2,496
Selective Insurance Group ..................... 41,900 939
Vesta Insurance Group, Inc. ................... 40,000 853
--------
18,701
Leisure and Recreation - 0.4%
Hasbro, Inc. .................................. 22,850 898
Media - Publishing - 2.5%
Central Newspapers, Inc. ...................... 32,000 2,232
Outdoor Systems, Inc.* ........................ 115,950 3,247
--------
5,479
Media - TV/Radio - 3.1%
Clear Channel Communications, Inc.* ........... 21,000 2,292
Sinclair Broadcast Group, Inc. ................ 89,900 2,585
Univision Communications, Inc. - Cl. A* ....... 51,500 1,918
--------
6,795
Natural Gas Distribution - 3.0%
Columbia Energy Group, Inc. ................... 44,250 2,461
KN Energy, Inc. ............................... 42,000 2,276
Questar Corp. ................................. 102,000 2,002
--------
6,739
Oil - Equipment and Services - 1.1%
BJ Services Co.* .............................. 36,000 1,046
Cooper Cameron Corp.* ......................... 26,000 1,326
--------
2,372
Oil and Natural Gas Exploration and Production - 2.2%
El Paso Natural Gas Co. ....................... 28,500 1,090
MCN Energy Group, Inc. ........................ 59,000 1,468
Mitchell Energy & Development Corp. -
Cl. A ........................................ 73,050 1,461
Santa Fe International Corp. .................. 30,000 907
--------
4,926
Pollution Control - 1.0%
USA Waste Services, Inc.* ..................... 45,225 2,233
Real Estate Investment Trust - 3.3%
Felcor Suite Hotels, Inc. ..................... 61,000 1,914
Spieker Properties, Inc. ...................... 47,800 1,852
Starwood Hotels & Resorts ..................... 37,900 1,831
Vornado Realty Trust .......................... 41,100 1,631
--------
7,228
Retail - Department Stores - 3.5%
Costco Cos., Inc.* ............................ 17,400 1,097
Fred Meyer, Inc.* ............................. 54,300 2,308
OfficeMax, Inc. ............................... 133,000 2,195
Pier 1 Imports, Inc. .......................... 90,100 2,151
--------
7,751
Retail - Drug Stores - 2.0%
CVS Corp. ..................................... 60,000 2,336
Rite Aid Corp. ................................ 57,700 2,168
--------
4,504
Retail - Food - 1.0%
Safeway, Inc.* ................................ 52,600 2,140
Telecommunication Services - 6.0%
ICG Communications, Inc. ...................... 71,600 2,618
Intermedia Communications, Inc.* .............. 66,400 2,785
McLeodUSA, Inc. - Cl. A* ...................... 64,200 2,496
Nextlink Communications, Inc.* ................ 92,000 3,484
Tel-Save Holdings, Inc.* ...................... 120,600 1,779
--------
13,162
Telecommunications Equipment - 2.2%
Advanced Fibre Communications* ................ 37,700 1,510
American Tower Corp. - Cl. A .................. 49,000 1,222
Ascend Communications, Inc. ................... 42,300 2,097
--------
4,829
--------
TOTAL COMMON STOCK- 94.6% 209,147
Par
Value
(000's)
JOINT REPURCHASE AGREEMENT - 5.6%
Investment in joint repurchase agreement
with Swiss Bank Corp. dated 6/30/98
5.75% due 07/01/98 ........................... $ 12,406 12,407
-------- --------
TOTAL INVESTMENTS- 100.2 % 221,554
Payables, less cash and receivables- (0.2)% (511)
-------- --------
NET ASSETS- 100.0 % $221,043
======== ========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statement.
79
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.8%
Raytheon Co. - Notes
6.75% due 08/15/07 ......................... $ 200 $ 206
Banks - 3.4%
First Union Corp. - Sub. Notes
8.12% due 06/24/02 ......................... 230 246
Interamerican Development Bank - Debs.
8.50% due 03/15/11 ......................... 200 247
National City Bank Pittsburgh - Sub. Notes
7.25% due 10/21/11 ......................... 50 54
NationsBank Corp. - Sub. Notes
6.50% due 03/15/06 ......................... 150 153
Wells Fargo & Co. - Sub. Notes
6.87% due 04/01/06 ......................... 150 156
-------
856
Chemicals - 1.3%
ICI Wilmington - Debs.
8.75% due 05/01/01 ......................... 300 321
Computer Equipment - 0.4%
IBM Corp. - Debs.
7.00% due 10/30/25 ......................... 100 107
Diversified Operations - 1.5%
General Electric Capital Corp. - Debs.
8.75% due 05/21/07 ......................... 150 178
Tenneco Corp. - Debs.
10.20% due 03/15/08 ........................ 150 195
-------
373
Electric Power - 1.2%
Duke Energy Co.
6.75% due 08/01/25 ......................... 100 98
Florida Power & Light Co.
7.75% due 02/01/23 ......................... 50 52
Virginia Electric + Power Co.
7.62% due 07/01/07 ......................... 150 164
-------
314
Financial Services - 6.5%
Citicorp Capital II - Bonds
8.01% due 02/15/27 ......................... 100 109
Commercial Credit Co.
5.90% due 09/01/03 ......................... 150 149
Dean Witter Discover - Notes
6.87% due 03/01/03 ......................... 200 206
Ford Capital B.V. - Debs.
9.50% due 06/01/10 ......................... 150 188
Golden West Financial Corp. - Sub. Notes
6.70% due 07/01/02 ......................... 150 153
KFW International Finance - Debs.
9.12% due 05/15/01 ......................... 300 326
Merrill Lynch & Co. - Notes
8.00% due 06/01/07 ......................... 200 225
Santander Finance Issuances
6.80% due 07/15/05 ......................... 200 205
Torchmark Corp. - Debs.
8.25% due 08/15/09 ......................... 100 114
-------
1,675
Food, Beverage and Tobacco - 0.9%
Coca Cola Enterprises - Debs.
8.50% due 02/01/22 ......................... 100 123
Philip Morris - Debs.
8.25% due 10/15/03 ......................... 100 108
-------
231
Foreign Governmental - 1.6%
Province of Manitoba - Debs.
6.87% due 09/15/02 ......................... 200 206
Province of Ontario
8.00% due 10/17/01 ......................... 200 212
-------
418
Government Agencies - 11.6%
Federal Home Loan Mortgage Corp. - Bonds
7.10% due 04/10/07 ......................... 1,500 1,630
Federal Home Loan Mortgage Corp. - Notes
5.75% due 07/15/03 ......................... 200 200
Federal National Mortgage Association - Notes
8.35% due 11/10/99 ......................... 1,000 1,023
Hydro-Quebec
8.40% due 01/15/22 ......................... 100 122
-------
2,975
Household Appliances / Furnishings - 0.5%
Fortune Brands, Inc. - Debs.
7.87% due 01/15/23 ......................... 100 116
Insurance - 0.4%
Aetna Services, Inc.
7.62% due 08/15/26 ......................... 100 108
Media - TV / Radio - 0.4%
News America Holdings - Debs.
7.70% due 10/30/25 ......................... 100 107
Metals and Mining - 0.8%
Noranda, Inc. - Debs.
7.00% due 07/15/05 ......................... 200 203
Natural Gas Distribution - 0.8%
Enron Corp. - Notes
6.75% due 09/15/04 ......................... 100 103
Tennessee Gas Pipeline - Bonds
7.50% due 04/01/17 ......................... 100 109
-------
212
Oil - 0.5%
Tosco Corp. - Notes
7.62% due 05/15/06 ......................... 115 124
80
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Oil and Natural Gas Exploration and
Production - 0.7%
Occidental Petroleum - Sr. Notes
10.12% due 11/15/01 ....................... $ 155 $ 173
Paper and Forest Products - 0.5%
Bowater, Inc. - Debs.
9.00% due 08/01/09 ........................ 100 121
Personal and Commercial Lending - 1.5%
General Motors Acceptance
9.62% due 12/15/01 ........................ 350 389
Pollution Control - 0.6%
Waste Management, Inc. - Sr. Notes
7.00% due 10/01/04 ........................ 150 155
Retail - Department Stores - 0.4%
Wal-Mart Stores - Debs.
6.75% due 10/15/23 ........................ 100 106
Retail - Drug Stores - 1.2%
Rite Aid Corp. - Notes
6.70% due 12/15/01 ........................ 300 306
-------
306
Shoe and Apparel Manufacturing - 0.4%
Gap, Inc. - Notes
6.90% due 09/15/07 ........................ 100 104
Telecommunication Services - 0.4%
Bellsouth Telecommunications - Debs.
7.00% due 10/01/25 ........................ 100 108
Telephone - 2.2%
GTE South, Inc. - Debs.
7.25% due 08/01/02 ........................ 250 259
New York Telephone Co. - Debs.
7.25% due 02/15/24 ........................ 100 104
South Carolina Electric & Gas - 1st Mtge.
7.50% due 06/15/23 ........................ 100 105
Southwestern Bell Telephone - Debs.
5.87% due 06/01/03 ........................ 100 98
-------
566
Transportation Services - 1.0%
Delta Air Lines - Debs.
10.37% due 12/15/22 ....................... 100 141
Laidlaw, Inc. - Debs.
8.75% due 04/15/25 ........................ 100 123
-------
264
U.S. Governmental - 52.1%
US Treasury - Bonds
7.62% due 11/15/22 ........................ 3,000 3,739
11.12% due 08/15/03 ....................... 2,000 2,490
US Treasury - Notes
5.62% due 02/15/06 ........................ 1,750 1,757
6.12% due 07/31/00 ........................ 3,250 3,289
6.50% due 05/31/02 ........................ 2,000 2,066
-------
13,341
-------
TOTAL PUBLICLY-TRADED BONDS- 93.6% 23,979
SHORT-TERM INVESTMENTS - 5.8%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ........................ 1,475 1,475
------ -------
TOTAL INVESTMENTS- 99.4% 25,454
Cash and Receivables, less payables- 0.6% 150
------ -------
NET ASSETS- 100.0% $25,604
====== =======
See notes to financial statements.
81
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.9%
Ducommun, Inc. ........................... 750 $ 15
Esterline Technologies Corp.* ............ 1,000 21
Orbital Sciences Corp. ................... 300 11
-------
47
Auto and Truck Parts - 1.7%
Excel Industries, Inc. ................... 1,200 17
Lear Corp.* .............................. 300 16
Navistar International* .................. 1,000 29
Standard Products Co. .................... 900 25
-------
87
Automobile - 2.0%
Copart, Inc. ............................. 600 14
Hertz Corp. - Cl. A ...................... 2,000 88
-------
102
Banks - 5.4%
City National Corp. ...................... 600 22
CORUS Bankshares, Inc. ................... 300 12
Dime Bancorp, Inc. ....................... 2,300 69
First Republic Bank ...................... 1,000 36
Omega Financial Corp. .................... 1,500 54
Valley National Bancorp .................. 625 18
Zions Bancorp ............................ 1,100 59
-------
270
Brokerage and Investment Management - 0.4%
Morgan Keegan, Inc. ...................... 800 21
Business Services - 1.9%
InaCom Corp. ............................. 700 22
Interim Services, Inc. ................... 1,400 45
Resource Bancshares Mortgage Group ....... 1,600 30
-------
97
Chemicals - 1.9%
Crompton & Knowles Corp. ................. 1,000 25
International Specialty Products, Inc. ... 800 15
NL Industries ............................ 700 14
Spartech Corp. ........................... 1,400 30
Terra Industries, Inc. ................... 1,300 12
-------
96
Commercial Services - 5.8%
ACNielson Corp.* ......................... 500 13
ADVO, Inc. ............................... 1,200 34
Budget Group, Inc.* ...................... 1,100 35
Concord EFS, Inc.* ....................... 600 16
E'Town Corp. ............................. 800 30
Pinkerton's, Inc. ........................ 1,400 29
Renters Choice, Inc. ..................... 400 11
Snyder Communications, Inc.* ............. 400 17
StaffMark, Inc. .......................... 300 11
Thor Industries, Inc. .................... 1,700 47
Veritas DGC, Inc.* ....................... 400 20
World Color Press, Inc. .................. 800 28
-------
291
Computer Equipment - 2.9%
Diamond Multimedia Systems ............... 1,800 12
Lexmark International Group, Inc. - Cl. A* 500 31
National Computer Systems, Inc.* ......... 2,200 53
Stratus Computer, Inc.* .................. 400 10
Tech Data Corp.* ......................... 800 34
Zitel Corp. .............................. 1,100 5
-------
145
Computer Software and Services - 5.0%
Advent Software, Inc.* ................... 300 13
Arbor Software Corp.* .................... 500 16
Autodesk, Inc. ........................... 400 15
Evans & Sutherland Computer Corp.* ....... 400 10
Factset Research Systems, Inc. ........... 700 23
Learning Company, Inc. ................... 1,300 39
Sterling Commerce, Inc.* ................. 500 24
Symantec Corp.* .......................... 800 21
Systems & Computer Technology Corp.* ..... 600 16
Unisys Corp.* ............................ 2,600 73
-------
250
Construction - 0.8%
NVR, Inc.* ............................... 400 16
USG Corp.* ............................... 400 22
-------
38
Consumer - Miscellaneous - 2.5%
American Greetings Corp. - Cl. A ......... 800 41
Herbalife International, Inc. - Cl. A .... 2,400 59
Metamor Worldwide, Inc.* ................. 400 14
Personnel Group of America, Inc. ......... 600 12
-------
126
Cosmetics and Personal Care Products - 0.6%
American Safety Razor Co.* ............... 700 10
AptarGroup, Inc. ......................... 300 19
-------
29
Diversified Operations - 2.2%
Advanta Corp. ............................ 500 11
Coltec Industries* ....................... 1,500 30
Ruddick Corp. ............................ 700 13
SPS Technologies, Inc. ................... 500 29
Teleflex, Inc. ........................... 300 11
Westinghouse Air Brake Co. ............... 600 16
-------
110
Electric Power - 3.6%
Central Maine Power Co. .................. 1,800 35
Niagara Mohawk Power* .................... 2,300 34
82
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - Continued
NIPSCO Industries, Inc. .................. 500 $ 14
Pinnacle West Capital Corp. .............. 800 36
Public Service Co. of New Mexico ......... 2,800 64
-------
183
Electrical Equipment - 2.2%
American Power Conversion ................ 400 12
Anixter International, Inc. .............. 2,000 38
Best Buy Co., Inc. ....................... 800 29
Molex, Inc. .............................. 800 20
Pentair, Inc. ............................ 300 13
-------
112
Electronic Products and Services - 1.2%
CTS Corp. ................................ 1,100 33
Storage Technology Corp. ................. 400 17
Thomas & Betts Corp. ..................... 200 10
-------
60
Energy - Alternative Source - 2.7%
Bec Energy ............................... 1,000 41
Energy East Corp. ........................ 2,200 92
-------
133
Financial Services - 2.8%
Capital One Financial Corp. .............. 100 13
Financial Federal Corp. .................. 900 24
FirstFed Financial Corp.* ................ 1,500 78
Long Beach Financial Corp. ............... 2,200 24
-------
139
Food, Beverage and Tobacco - 2.8%
Canandaigua Brands Inc. - Cl. A* ......... 900 44
Fleming Cos., Inc. ....................... 1,900 33
J.M. Smucker Co. ......................... 1,400 35
Universal Corp. .......................... 800 30
-------
142
Health Care Products - 2.3%
Allegiance Corp. ......................... 600 31
Alpharma, Inc. - Cl A .................... 500 11
Bergen Brunswig Corp. - Cl. A ............ 400 18
Block Drug Co. - Cl. A ................... 600 23
Cooper Cos, Inc. ......................... 400 15
DENTSPLY International, Inc. ............. 300 7
Medicis Pharmaceutical Corp. - Cl. A ..... 300 11
-------
116
Health Care Services - 3.9%
Beverly Enterprises, Inc. ................ 3,200 44
Bindley Western Industries ............... 2,266 75
HealthPlan Services Corp.* ............... 500 9
Integrated Health Services ............... 1,200 45
Medaphis Corp.* .......................... 1,200 7
Prime Medium Services, Inc. .............. 1,600 15
-------
195
Household Appliances / Furnishings - 1.5%
Ethan Allen Interiors, Inc. .............. 600 30
Herman Miller, Inc. ...................... 500 12
HomeBase, Inc. ........................... 1,400 11
Knoll, Inc. .............................. 400 12
Mohawk Industries, Inc. .................. 300 10
-------
75
Housing - 0.8%
D.R. Horton, Inc. ........................ 1,500 31
Fleetwood Enterprises .................... 200 8
-------
39
Insurance - 9.1%
Allmerica Financial Corp. ................ 300 19
Ambac Financial Group, Inc. .............. 300 18
Enhance Financial Services Group, Inc. ... 400 13
Everest Reinsurance Holdings ............. 600 23
FBL Financial Group - Cl. A .............. 1,000 26
First American Financial Corp. ........... 400 36
Fremont General Corp. .................... 300 16
Hartford Life, Inc. - Cl. A .............. 1,500 85
Medical Assurance, Inc. .................. 1,500 42
Nationwide Financial Services - Cl. A .... 900 46
Old Republic International Corp. ......... 600 18
Orion Capital Corp. ...................... 400 22
Reinsurance Group of America ............. 900 53
SCPIE Holdings, Inc. ..................... 1,200 41
-------
458
Leisure and Recreation - 2.3%
Dover Downs Entertainment* ............... 1,000 31
Promus Hotel Corp.* ...................... 300 12
Rio Hotel & Casino, Inc.* ................ 500 9
Signature Resorts, Inc. ADR .............. 700 12
Sunburst Hospitality Corp. ............... 2,600 18
WMS Industries, Inc. ..................... 7,400 31
-------
113
Machinery - 3.0%
Chart Industries, Inc. ................... 1,200 29
Commercial Intertech Corp. ............... 1,400 25
FMC Corp.* ............................... 500 34
Gleason Corp. ............................ 700 20
Graco, Inc. .............................. 300 11
JLG Industries, Inc. ..................... 1,500 30
-------
149
Media - Publishing - 0.6%
Big Flower Holdings, Inc. ................ 500 15
83
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Media - Publishing - Continued
Forrester Research, Inc.* .......................... 400 $ 16
-------
31
Media - TV/Radio - 1.0%
Belo A Hampshire Corp. - Com Ser. A ................ 400 10
Chancellor Media Corp.* ............................ 500 25
King World Productions, Inc.* ...................... 600 15
-------
50
Metals and Mining - 2.5%
Chase Industries, Inc. ............................. 1,200 24
Precision Castparts Corp. .......................... 600 32
Ryerson Tull, Inc. - Cl. A ......................... 2,800 57
Zeigler Coal Holding Co. ........................... 700 12
-------
125
Natural Gas Distribution - 0.3%
MarketSpan Corp. ................................... 440 13
Oil - Equipment and Services - 2.7%
BJ Services Co.* ................................... 600 17
Camco International, Inc. .......................... 200 16
Daniel Industries .................................. 800 15
Pool Energy Services Co.* .......................... 1,300 19
SEACOR SMIT, Inc. .................................. 700 43
Tesoro Petroleum Corp.* ............................ 900 14
Varco International, Inc.* ......................... 500 10
-------
134
Oil and Natural Gas Exploration and Production - 1.1%
Nabors Industries, Inc.* ........................... 400 8
Noble Drilling Corp.* .............................. 400 10
Rowan Cos., Inc.* .................................. 800 15
Valero Energy Corp. ................................ 600 20
-------
53
Paper and Forest Products - 0.7%
Rayonier, Inc. ..................................... 300 14
Wausau-Mosinee Paper Corp. ......................... 900 20
-------
34
Personal and Commercial Lending - 0.8%
Countrywide Credit Industries, Inc. ................ 400 20
IMC Mortgage Co.* .................................. 1,800 19
-------
39
Real Estate Operations - 1.1%
Lennar Corp. ....................................... 1,300 38
Ryland Group, Inc. ................................. 600 16
-------
54
Retail - Department Stores - 5.2%
Ames Department Stores, Inc.* ...................... 400 10
Department 56, Inc. ................................ 1,400 50
Fabri-Centers of America - Cl. A ................... 1,200 33
Family Dollar Stores, Inc. ......................... 500 9
Fred Meyer, Inc.* .................................. 600 25
Neiman Marcus Group, Inc.* ......................... 500 22
Office Depot, Inc. ................................. 1,000 32
Proffitt's, Inc.* .................................. 500 20
Williams-Sonoma, Inc. .............................. 400 13
Zale Corp.* ........................................ 1,500 48
-------
262
Retail - Food - 1.5%
Brinker International, Inc.* ....................... 1,000 19
Interstate Bakeries ................................ 900 30
Michael Foods, Inc. ................................ 900 27
-------
76
Shoe and Apparel Manufacturing - 1.3%
Burlington Industries, Inc.* ....................... 1,400 20
Goody's Family Clothing, Inc. ...................... 800 44
-------
64
Steel - 1.8%
AK Steel Holding Corp. ............................. 800 14
Citation Corp. ..................................... 1,900 38
LTV Corp. .......................................... 1,200 11
National Steel Corp. - Cl. B* ...................... 1,500 18
USX-US Steel Group, Inc. ........................... 300 10
-------
91
Telecommunication Services - 0.3%
Fingerhut Companies, Inc. .......................... 500 17
Telecommunications Equipment - 1.3%
AFC Cable Systems, Inc. ............................ 400 14
Aspect Telecommunications .......................... 900 25
California Microwave ............................... 600 10
Paging Network, Inc.* .............................. 1,000 14
-------
63
Telephone - 0.4%
Century Telephone Enterprises, Inc. ................ 400 18
Transportation Services - 5.1%
Airbourne Freight Corp. ............................ 600 21
Alaska Air Group, Inc.* ............................ 600 33
America West Holdings Corp. - Cl. B* ............... 1,300 37
Continental Airlines, Inc. - Cl. B* ................ 600 36
GATX Corp. ......................................... 1,600 70
Sabre Group Holdings, Inc.* ........................ 1,600 61
-------
258
-------
TOTAL COMMON STOCK- 99.9% 5,005
------ -------
TOTAL INVESTMENTS- 99.9% 5,005
Cash and Receivables, less payables- 0.1% 7
------ -------
NET ASSETS- 100.0% $ 5,012
====== =======
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statement.
84
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Real Estate Development - 2.7%
Catellus Development Corp.* ................ 293,000 $ 5,183
Real Estate Investment Trust - 95.8%
Avalon Bay Communities, Inc. ............... 185,245 7,039
Boykin Lodging Co. ......................... 116,500 2,527
Bradley Real Estate, Inc. .................. 150,000 3,169
Brandywine Realty Trust .................... 240,000 5,370
BRE Properties, Inc. ....................... 225,000 5,864
Burnham Pacific Properties, Inc. ........... 185,000 2,625
Camden Property Trust ...................... 160,900 4,787
CarrAmerica Realty Corp. ................... 150,000 4,256
Centerpoint Properties Corp. ............... 87,000 2,876
Chateau Communities, Inc. .................. 158,180 4,548
Cousins Properties, Inc. ................... 70,000 2,091
Crescent Real Estate Equities, Inc. ........ 200,000 6,725
Developers Diversified Realty Corp. ........ 120,000 4,703
Duke Realty Investments, Inc. .............. 235,000 5,552
Equity Office Properties Trust ............. 238,093 6,756
Equity Residential Properties Trust ........ 175,000 8,302
Glenborough Realty Trust, Inc. ............. 110,000 2,901
Glimcher Realty Trust ...................... 201,900 3,924
Highwoods Properties, Inc. ................. 125,000 4,039
JDN Realty Corp. ........................... 130,000 4,144
JP Realty, Inc. ............................ 128,700 3,032
Kilroy Realty Corp. ........................ 165,000 4,125
Kimco Realty Corp. ......................... 100,000 4,100
Liberty Property Trust ..................... 198,900 5,084
Mack-Cali Realty Corporation ............... 105,000 3,609
Meditrust Companies ........................ 85,000 2,375
MGI Properties, Inc. ....................... 190,000 4,976
Parkway Properties, Inc. ................... 40,000 1,180
Patriot American Hospitality, Inc. ......... 226,004 5,410
Post Properties, Inc. ...................... 124,700 4,801
Prentiss Properties Trust .................. 193,000 4,692
Public Storage, Inc. ....................... 90,000 2,520
Regency Realty Corp. ....................... 150,000 3,769
Security Capital Industrial Trust .......... 173,059 4,326
Simon DeBartolo Group, Inc. ................ 165,000 5,362
Sovran Self Storage, Inc. .................. 90,000 2,543
Spieker Properties, Inc. ................... 84,000 3,255
Starwood Hotels & Resorts .................. 100,000 4,831
Storage USA, Inc. .......................... 139,000 4,865
Sun Communities, Inc. ...................... 80,000 2,650
Sunstone Hotel Investors, Inc. ............. 150,000 1,997
Vornado Realty Trust ....................... 105,000 4,167
Weeks Corp. ................................ 160,600 5,079
----------
180,946
----------
TOTAL COMMON STOCK- 98.5% 186,129
Par Market
Value Value
(000's) (000's)
WARRANTS - 0.0%
Security Capital Group
expires 9/18/98 (Cost $7) ................. $ 20 $ 7
SHORT-TERM INVESTMENTS - 0.8%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ........................ 1,554 1,554
-------- ----------
TOTAL INVESTMENTS- 99.3% 187,690
Cash and Receivables, less payables- 0.7% 1,292
-------- ----------
NET ASSETS- 100.0% $ 188,982
======== ==========
* Non-income producing security.
See notes to financial statement.
85
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.3%
Northrop Grumman Corp. ................... 65,300 $ 6,734
United Technologies Corp. ................ 762,300 70,513
----------
77,247
Auto and Truck Parts - 2.8%
Dana Corp. ............................... 440,800 23,583
Ford Motor Co. ........................... 920,300 54,297
Lear Corp.* .............................. 298,600 15,322
----------
93,202
Automobile - 0.4%
Chrysler Corp. ........................... 266,700 15,035
Banks - 7.0%
Banc One Corp. ........................... 145,100 8,098
Bank of New York Co., Inc. ............... 241,700 14,668
BankAmerica Corp. ........................ 494,200 42,717
Citicorp ................................. 482,900 72,073
Comerica, Inc. ........................... 529,600 35,086
First Union Corp. ........................ 740,000 43,105
State Street Corp. ....................... 100,000 6,950
U.S. Bancorp ............................. 347,500 14,943
----------
237,640
Brokerage and Investment Management - 1.2%
Morgan Stanley, Dean Witter,
Discover & Co. .......................... 444,200 40,589
Chemicals - 1.8%
Air Products & Chemicals, Inc. ........... 1,079,800 43,192
Millenium Chemicals, Inc. ................ 303,100 10,267
Solutia, Inc. ............................ 288,100 8,265
----------
61,724
Computer Equipment - 6.2%
Cisco Systems, Inc.* ..................... 364,100 33,520
Harris Corp. ............................. 163,300 7,298
Hewlett-Packard Co. ...................... 429,700 25,728
IBM Corp. ................................ 306,800 35,225
Intel Corp. .............................. 591,300 43,830
Xerox Corp. .............................. 618,600 62,865
----------
208,466
Computer Software and Services - 5.2%
Autodesk, Inc. ........................... 328,600 12,692
Cadence Design Systems, Inc.* ............ 224,200 7,006
Computer Associates International,
Inc. .................................... 407,000 22,614
Microsoft Corp. .......................... 1,042,200 112,949
Oracle Corp.* ............................ 435,000 10,685
Sun Microsystems, Inc.* .................. 225,500 9,795
----------
175,741
Consumer - Miscellaneous - 0.8%
Avery Dennison Corp. ..................... 336,200 18,071
Unilever NV - NY Shares .................. 110,500 8,722
----------
26,793
Cosmetics and Personal Care Products - 3.4%
Dial Corp. ............................... 764,400 19,827
Procter & Gamble Co. ..................... 949,900 86,500
Revlon, Inc.* ............................ 137,900 7,085
----------
113,412
Diversified Operations - 5.2%
General Electric Co. ..................... 1,378,900 125,480
Ogden Corp. .............................. 416,400 11,529
Textron, Inc. ............................ 137,500 9,857
Tyco International, Ltd. ................. 453,400 28,564
----------
175,430
Electric Power - 3.3%
Dominion Resources, Inc. ................. 586,800 23,912
Florida Progress Corp. ................... 819,300 33,694
FPL Group, Inc. .......................... 627,100 39,507
Houston Industries, Inc. ................. 489,500 15,113
----------
112,226
Electrical Equipment - 0.7%
Honeywell, Inc. .......................... 262,200 21,910
Electronic Products and Services - 1.3%
Linear Technology Corp. .................. 141,500 8,534
Pitney Bowes, Inc. ....................... 727,500 35,011
----------
43,545
Financial Services - 2.1%
American Express Co. ..................... 117,600 13,407
Associates First Capital Corp. - Cl. A.... 250,396 19,249
Norwest Corp. ............................ 1,012,500 37,842
----------
70,948
Food, Beverage and Tobacco - 5.5%
Albertson's, Inc. ........................ 525,300 27,217
ConAgra, Inc. ............................ 431,900 13,686
H.J. Heinz Co. ........................... 292,900 16,439
PepsiCo, Inc. ............................ 1,537,400 63,322
Philip Morris Cos., Inc. ................. 867,300 34,150
Quaker Oats Co. .......................... 375,700 20,640
Universal Foods Corp. .................... 467,800 10,379
----------
185,833
Government Agencies - 1.5%
Federal National Mortgage Assoc. ......... 828,600 50,337
Health Care Products - 10.8%
Abbott Laboratories ...................... 1,058,000 43,246
Allegiance Corp. ......................... 232,000 11,890
86
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Becton, Dickinson & Co. ............. 169,900 $ 13,188
Bristol-Myers Squibb Co. ............ 481,700 55,365
Cardinal Health, Inc. ............... 398,100 37,322
Guidant Corp. ....................... 312,500 22,285
Hillenbrand Industries, Inc. ........ 134,900 8,094
Johnson & Johnson ................... 540,700 39,877
Merck & Co., Inc. ................... 523,400 70,005
Perkin-Elmer Corp. .................. 175,000 10,883
Pfizer, Inc. ........................ 222,700 24,205
Schering-Plough Corp. ............... 305,500 27,991
----------
364,351
Health Care Services - 2.0%
Glaxo Wellcome plc - ADR ............ 223,200 13,350
HEALTHSOUTH Corp.* .................. 873,100 23,301
Lincare Holdings, Inc. .............. 233,000 9,800
Tenet Healthcare Corp. .............. 360,000 11,250
United Healthcare Corp. ............. 154,200 9,792
----------
67,493
Housing - 0.4%
Masco Corp. ......................... 230,300 13,933
Insurance - 9.0%
Allstate Corp. ...................... 307,800 28,183
American International Group, Inc. .. 248,800 36,325
Cigna Corp. ......................... 286,500 19,768
General Re Corp. .................... 196,400 49,787
Hartford Financial Services Group,
Inc ................................ 308,400 35,273
Hartford Life, Inc. - Cl. A ......... 165,200 9,406
Marsh & McLennan Cos., Inc. ......... 650,700 39,327
Travelers Group, Inc. ............... 969,350 58,767
Travelers Property Casualty Corp. -
Cl. A .............................. 659,700 28,285
----------
305,121
Machinery - 0.4%
Ingersoll-Rand Co. .................. 324,350 14,292
Media - TV / Radio - 0.6%
Viacom, Inc.* ....................... 339,900 19,799
Metals and Mining - 0.2%
Precision Castparts Corp. ........... 100,000 5,338
Natural Gas Distribution - 0.5%
Consolidated Natural Gas Co. ........ 297,100 17,492
Oil - Equipment and Services - 2.0%
Baker Hughes, Inc. .................. 389,800 13,472
Dresser Industries, Inc. ............ 550,700 24,265
Halliburton Co. ..................... 268,400 11,961
Schlumberger, Ltd. .................. 266,500 18,205
----------
67,903
Oil and Natural Gas Exploration and
Production - 3.7%
Anadarko Petroleum Corp. ............ 151,000 10,145
British Petroleum Co. plc - ADR ..... 272,100 24,013
Exxon Corp. ......................... 281,600 20,082
Imperial Oil, Ltd. .................. 516,300 9,003
Phillips Petroleum Co. .............. 771,300 37,167
Texaco, Inc. ........................ 163,200 9,741
USX-Marathon Group .................. 463,900 15,917
----------
126,068
Paper and Forest Products - 0.6%
Fort James Corp. .................... 457,600 20,363
Personal and Commercial Lending - 0.2%
MBNA Corp. .......................... 214,300 7,072
Pollution Control - 0.8%
USA Waste Services, Inc.* ........... 520,700 25,710
Retail - Department Stores - 4.6%
Costco Cos., Inc.* .................. 162,800 10,267
Dayton-Hudson Corp. ................. 243,600 11,815
Home Depot, Inc. .................... 791,600 65,752
Lowe's Cos., Inc. ................... 739,600 30,000
Staples, Inc.* ...................... 54,000 1,563
TJX Cos., Inc. ...................... 765,600 18,470
Wal-Mart Stores, Inc. ............... 301,800 18,334
----------
156,201
Shoe and Apparel Manufacturing - 1.3%
Liz Claiborne, Inc. ................. 192,000 10,032
Tommy Hilfiger Corp.* ............... 220,000 13,750
Warnaco Group, Inc. - Cl. A ......... 503,900 21,384
----------
45,166
Telecommunications Equipment - 2.6%
Lucent Technologies, Inc. ........... 794,600 66,101
Northern Telecom, Ltd. .............. 360,000 20,430
----------
86,531
Telephone - 5.9%
AT&T Corp. .......................... 837,000 47,814
Bell Atlantic Corp. ................. 858,400 39,164
BellSouth Corp. ..................... 354,200 23,776
GTE Corp. ........................... 1,068,500 59,435
SBC Communications, Inc. ............ 678,000 27,120
----------
197,309
87
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - 2.8%
AMR Corp.* ........................ 319,400 $ 26,590
Burlington Northern Santa Fe ...... 276,200 27,119
Norfolk Southern Corp. ............ 352,200 10,500
Southwest Airlines Co. ............ 675,700 20,018
UAL Corp. ......................... 145,600 11,357
----------
95,584
----------
TOTAL COMMON STOCK- 99.1% 3,345,354
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.1%
Investment in joint trading account
(Note B)
5.88% due 07/01/98 .............. $ 69,999 70,010
--------- ----------
TOTAL INVESTMENTS- 101.2 % 3,415,364
Payables, less cash and receivables- (1.2)% (40,097)
--------- ----------
NET ASSETS- 100.0 % $3,375,267
========= ==========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statement.
88
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.8%
Northrop Grumman Corp. (US) ................ 110,200 $ 11,364
United Technologies Corp. (US) ............. 478,600 44,271
----------
55,635
Auto and Truck Parts - 1.1%
Dana Corp. (US) ........................... 109,300 5,848
Ford Motor Co. (US) ....................... 415,900 24,538
Lear Corp.* (US) ........................... 71,700 3,679
----------
34,065
Automobile - 0.4%
Chrysler Corp. (US) ....................... 237,700 13,400
Banks - 4.3%
Bank of New York Co., Inc. (US) ........... 97,900 5,941
BankAmerica Corp. (US) ..................... 280,700 24,263
Bankers Trust New York Corp. (US) ......... 52,200 6,059
Chase Manhattan Corp. (US) ................. 182,800 13,801
Citicorp (US) ............................. 126,200 18,835
Comerica, Inc. (US) ....................... 342,900 22,717
Fifth Third Bancorp (US) ................... 129,900 8,184
First Chicago NBD Corp.* (US) ............. 110,200 9,767
First Union Corp. (US) ..................... 215,300 12,541
State Street Corp. (US) ................... 60,000 4,170
U.S. Bancorp (US) ......................... 239,100 10,281
----------
136,559
Brokerage and Investment Management - 0.8%
Morgan Stanley, Dean Witter,
Discover & Co. (US) ....................... 297,800 27,212
Chemicals - 1.1%
Air Products & Chemicals, Inc. (US) ....... 235,800 9,432
Imperial Chemical Industries
plc - ADR (GB) ............................ 55,000 3,548
Lyondell Petrochemical (US) ............... 280,000 8,522
Millenium Chemicals, Inc. (US) ............. 173,800 5,887
Morton International, Inc. (US) ........... 159,100 3,978
Solutia, Inc. (US) ......................... 130,000 3,729
----------
35,096
Commercial Services - 0.2%
Cognizant Corp. (US) ....................... 80,000 5,040
Computer Equipment - 3.3%
Hewlett-Packard Co. (US) ................... 291,300 17,442
IBM Corp. (US) ............................. 121,900 13,996
Intel Corp. (US) ........................... 355,300 26,337
Linear Technology Corp.* (US) ............. 94,500 5,699
Xerox Corp. (US) ........................... 390,300 39,664
----------
103,138
Computer Software and Services - 3.0%
Autodesk, Inc. (US) ....................... 125,000 4,828
Cadence Design Systems, Inc.* (US) ......... 154,100 4,816
Computer Associates International,
Inc. (US) ................................. 238,750 13,265
Microsoft Corp. (US) ....................... 495,900 53,743
Parametric Technology Co.* (US) ........... 125,000 3,391
Peoplesoft, Inc. (US) ..................... 118,100 5,551
Sun Microsystems, Inc.* .................... 193,500 8,405
----------
93,999
Consumer - Miscellaneous - 0.9%
Avery Dennison Corp. (US) ................. 290,000 15,588
Service Corp. International (US) ........... 312,800 13,411
----------
28,999
Cosmetics and Personal Care Products - 2.2%
Avon Products, Inc. (US) ................... 68,800 5,332
Dial Corp.* (US) ........................... 340,100 8,821
Procter & Gamble Co. (US) ................. 579,600 52,780
Revlon, Inc. - Cl. A* (US) ................. 77,000 3,956
----------
70,889
Diversified Operations - 3.2%
Canadian Pacific, Ltd. (CA) ............... 177,900 5,048
Cooper Industries, Inc. (US) ............... 71,500 3,928
General Electric Co. (US) ................. 693,000 63,063
National Service Industries, Inc. .......... 84,100 4,279
Reynolds & Reynolds Co. - Cl. A (US) ....... 186,800 3,397
Textron, Inc. (US) ......................... 117,000 8,387
Tyco International, Ltd. (US) ............. 201,200 12,676
----------
100,778
Electric Power - 1.5%
Dominion Resources, Inc. (US) ............. 252,000 10,269
DQE, Inc. (US) ............................. 113,300 4,079
Florida Progress Corp. (US) ............... 142,000 5,840
FPL Group, Inc. (US) ....................... 304,700 19,196
New Century Energies, Inc. (US) ........... 200,000 9,087
----------
48,471
Electrical Equipment - 0.3%
Honeywell, Inc. (US) ....................... 100,000 8,356
Electronic Products and Services - 1.2%
Analog Devices, Inc.* (US) ................. 1
Cisco Systems, Inc.* (US) ................. 182,900 16,838
Pitney Bowes, Inc. (US) ................... 367,000 17,662
Tektronix, Inc. (US) ....................... 106,100 3,753
----------
38,253
Financial Services - 1.1%
American Express Co. (US) ................. 88,300 10,066
Associates First Capital - Cl. A (US) ..... 109,001 8,379
Norwest Corp. (US) ......................... 406,200 15,182
----------
33,627
Food, Beverage and Tobacco - 3.2%
Albertson's, Inc. (US) ..................... 80,000 4,145
89
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Food, Beverage and Tobacco - Continued
ConAgra, Inc. (US) ......................... 179,200 $ 5,679
H.J. Heinz Co. (US) ....................... 137,800 7,734
PepsiCo, Inc. (US) ......................... 897,100 36,949
Philip Morris Cos., Inc. (US) ............. 413,800 16,293
Quaker Oats Co. (US) ....................... 343,500 18,871
Universal Foods Corp. (US) ................. 442,400 9,816
----------
99,487
Health Care Products - 6.5%
Abbott Laboratories (US) ................... 691,400 28,261
Becton, Dickinson & Co. (US) ............... 185,400 14,392
Bristol-Myers Squibb Co. (US) ............. 232,500 26,723
Cardinal Health, Inc. (US) ................. 238,800 22,388
Guidant Corp. (US) ......................... 83,700 5,969
Hillenbrand Industries, Inc. (US) ......... 70,900 4,254
Johnson & Johnson (US) ..................... 271,100 19,994
Merck & Co., Inc. (US) ..................... 251,800 33,678
Mylan Laboratories, Inc. ................... 180,000 5,445
Pfizer, Inc. (US) ......................... 250,300 27,204
Schering-Plough Corp. (US) ................. 180,600 16,547
----------
204,855
Health Care Services - 1.2%
Health Management Associates,
Inc. - Cl. A* (US) ....................... 165,000 5,517
HEALTHSOUTH Corp.* (US) ................... 447,400 11,940
Tenet Healthcare Corp. (US) ............... 172,100 5,378
United Healthcare Corp. (US) ............... 196,000 12,446
Universal Health Services - Cl. B* (US) ... 65,000 3,795
----------
39,076
Housing - 0.2%
Masco Corp. (US) ........................... 112,200 6,788
Insurance - 5.9%
Allstate Corp. (US) ....................... 173,500 15,886
American International Group, Inc. (US) ... 173,950 25,397
Cigna Corp. (US) ........................... 60,000 4,140
Equitable Cos., Inc. (US) ................. 75,000 5,620
General Re Corp. (US) ..................... 124,300 31,510
Hartford Financial Services Group, Inc. (US) 280,600 32,094
Hartford Life - Cl. A (US) ................. 100,000 5,694
Marsh & McLennan Cos., Inc. (US) ........... 355,950 21,513
Travelers Group, Inc. (US) ................. 588,200 35,659
Travelers Property Casualty - Cl. A (US) ... 169,900 7,284
----------
184,797
Leisure and Recreation - 0.3%
Mattel, Inc. (US) ......................... 231,900 9,812
Machinery - 0.3%
Deere & Co. (US) ........................... 70,700 3,738
Ingersoll-Rand Co. (US) ................... 151,600 6,680
----------
10,418
Media - TV / Radio - 0.1%
Omnicom Group (US) ......................... 85,000 4,239
Natural Gas Distribution - 0.3%
Consolidated Natural Gas Co. (US) ......... 171,600 10,103
Oil - Equipment and Services - 0.9%
Baker Hughes, Inc. (US) ................... 159,500 5,512
Dresser Industries, Inc. (US) ............. 119,600 5,270
Halliburton Co. (US) ....................... 240,200 10,704
Schlumberger, Ltd. (US) ................... 102,600 7,009
----------
28,495
Oil and Natural Gas Exploration and
Production - 3.0%
Atlantic Richfield Co. (US) ............... 145,100 11,336
British Petroleum Co. plc - ADR (GB) ....... 152,800 13,485
Chevron Corp. (US) ......................... 43,600 3,622
Imperial Oil, Ltd. (CA) ................... 189,600 3,306
Mobil Corp. (US) ........................... 156,000 11,954
Phillips Petroleum Co. (US) ............... 504,600 24,315
Texaco, Inc. (US) ......................... 291,000 17,369
USX-Marathon Group (US) ................... 250,300 8,588
----------
93,975
Paper and Forest Products - 0.1%
Fort James Corp. (US) ..................... 87,000 3,872
Personal and Commercial Lending - 0.4%
Household International, Inc. (US) ......... 86,700 4,314
MBNA Corp. (US) ........................... 271,400 8,956
----------
13,270
Pollution Control - 0.4%
USA Waste Services, Inc.* (US) ............. 225,400 11,129
Retail - Department Stores - 3.3%
Costco Cos., Inc.* (US) ................... 63,200 3,985
Dayton-Hudson Corp. (US) ................... 79,400 3,851
Home Depot, Inc. (US) ..................... 540,100 44,862
Lowe's Cos., Inc. (US) ..................... 389,000 15,779
Staples, Inc.* (US) ....................... 264,237 7,646
TJX Cos., Inc. (US) ....................... 377,400 9,105
Wal-Mart Stores, Inc. (US) ................. 295,600 17,958
----------
103,186
Retail - Drug Stores - 0.2%
Eli Lilly & Co. (US) ....................... 72,800 4,809
Shoe and Apparel Manufacturing - 0.8%
Jones Apparel Group, Inc.*(US) ............. 291,800 10,669
Liz Claiborne, Inc. (US) ................... 149,500 7,812
Tommy Hilfiger Corp.* (GB) ................. 109,300 6,831
----------
25,312
Telecommunications Equipment - 1.3%
Lucent Technologies, Inc. (US) ............. 347,074 28,872
90
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Telecommunications Equipment - Continued
Northern Telecom, Ltd. (CA) ................ 207,300 $ 11,764
----------
40,636
Telephone - 4.0%
AT&T Corp. (US) ............................ 465,200 26,574
Bell Atlantic Corp. (US) .................... 796,200 36,327
BellSouth Corp. (US) ........................ 311,800 20,929
GTE Corp. (US) .............................. 542,700 30,188
SBC Communications, Inc. (US) .............. 260,300 10,412
----------
124,430
Transportation Services - 1.3%
AMR Corp.* (US) ............................ 100,800 8,392
Burlington Northern Santa Fe (US) .......... 138,500 13,599
Southwest Airlines Co. (US) ................ 343,600 10,179
UAL Corp. (US) .............................. 98,100 7,652
----------
39,822
U.S. Government Agencies - 1.1%
Federal National Mortgage
Assoc. (US) ................................ 555,600 33,753
----------
TOTAL COMMON STOCK- 61.2% 1,925,781
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Automobile - 0.9%
Ford Motor Co. - Bonds (US)
7.7% due 05/15/97 .......................... $ 24,510 27,645
Banks - 1.7%
Banponce Financial Corp. Mountain Bank Ent -
Ser. C (US)
6.58% due 11/25/03 ......................... 11,040 11,128
Euro Investor Bank - Sr. Unsub. (LU)
6.0% due 11/26/04 .......................... 1,800 2,970
International Bank Reconstruction &
Development - Unsub. (JP)
4.75% due 12/20/04 ......................... 1,430,000 12,655
4.5% due 06/20/00 .......................... 1,365,000 10,611
4.5% due 03/20/03 .......................... 1,030,000 8,696
9.25% due 07/20/07 ......................... 2,940 5,969
----------
52,029
Business Services - 1.0%
Comdisco, Inc. - Notes (US)
6.5% due 04/30/99 .......................... 30,630 30,717
Computer Equipment - 0.7%
Avalon Properties, Inc. (US)
6.87% due 12/15/07 ......................... 8,720 8,972
IBM Corp. - Debs. (US)
7.12% due 12/01/96 ......................... 11,677 12,411
----------
21,383
Consumer - Miscellaneous - 0.3%
Millipore Corp. (AU)
7.5% due 04/01/07 .......................... $ 9,380 $ 10,105
Diversified Operations - 0.7%
Loewen Group International, Inc. - Notes (US)
7.2% due 06/01/03 .......................... 23,000 23,043
Electric Power - 0.3%
Enersis SA - Notes (KY)
6.9% due 12/01/06 .......................... 8,490 8,548
Financial Services - 6.4%
ADVANTA Corp. - Notes Ser. C (US)
7.07% due 09/15/99 ......................... 11,300 11,133
Amresco Commercial Mortgage
Funding I - Ser. 1997-C1 Cl. A3 (US)
7.19% due 06/17/29 ......................... 6,980 7,384
Baden-Wurttemberg (AU)
6.75% due 06/22/05 ......................... 9,500 5,850
Banponce Trust I - Cap. Secs. (US)
8.32% due 02/01/27 ......................... 25,355 28,065
Camden Property Trust - Notes (US)
7.17% due 06/21/04 ......................... 6,330 6,495
Capital One Financial Corp. - Notes (US)
7.25% due 12/01/03 ......................... 10,000 10,232
Carco Auto Loan Master Trust -
Ser. 1997-1 Cl. A (US)
6.68% due 08/15/04 ......................... 14,210 14,429
Carramerica Realty Corp. - Notes (US)
6.62% due 03/01/05 ......................... 11,750 11,688
Chase Commercial Mortgage Securities Corp. -
Ser. 1997-1 Cl. A2 (US)
7.37% due 02/19/07 ......................... 13,300 14,162
Citibank Credit Card Master
Trust 1 - Notes (US)
5.85% due 04/10/03 ......................... 29,235 29,327
Fleet Capital Trust II - Unsec. Cap. Secs
(US) 7.92% due 12/11/26 .................... 21,830 23,579
Fletcher Challenge Industries,
Ltd. - Notes (US)
9.0% due 09/15/99 .......................... 1,270 1,310
KFW International Finance - Debs. (US)
10.62% due 09/03/01 ........................ 1,600 2,927
Lehman Brothers, Inc. - Sr. Sub. Notes (US)
7.25% due 04/15/03 ......................... 16,770 17,474
Mortgage Capital Funding, Inc. - Ser. 1996 -
MC2 Cl. A1 (US)
6.75% due 02/20/04 ......................... 8,538 8,751
United Dominion Realty Trust,
Inc. - Notes(US)
7.25% due 01/15/07 ......................... 7,330 7,545
----------
200,351
91
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Foreign Governmental - 4.6%
Federal Republic of Germany - Bonds (DE)
6.0% due 06/20/16 ..................... $ 8,050 $ 4,915
6.25% due 04/26/06 .................... 4,275 2,604
6.87% due 05/12/05 .................... 3,700 2,317
9.0% due 10/20/00 ..................... 20,000 12,263
Government of Canada - Debs. (CA)
7.5% due 03/01/01 ..................... 1,600 1,145
9.75% due 06/01/21 .................... 1,750 1,838
11.0% due 06/01/09 .................... 2,950 2,923
12.0% due 03/01/05 .................... 1,400 1,302
Government of France - Bonds (FR)
4.0% due 01/12/00 ..................... 13,500 2,233
8.5% due 04/25/03 ..................... 40,500 7,868
7.5% due 04/25/05 ..................... 55,000 10,602
8.5% due 04/25/23 ..................... 27,200 6,481
9.5% due 01/25/01 ..................... 20,500 3,829
10.0% due 05/27/00 .................... 6,000 1,096
Government of Japan - Bonds (JP)
5.3% due 03/20/13 ..................... 750,000 7,704
Government of Netherlands - Bonds (NL)
7.5% due 04/15/10 ..................... 2,900 1,750
7.75% due 03/01/05 .................... 3,300 1,910
8.25% due 02/15/02 .................... 3,500 1,942
8.75% due 05/01/00 .................... 3,100 1,648
8.75% due 01/15/07 .................... 4,600 2,881
Government of Swedan - Debs. (SE)
6.5% due 10/25/06 ..................... 4,000 555
Government of Sweden - Bonds (SE)
10.25% due 05/05/03 ................... 16,300 2,534
Kingdom of Denmark - Bonds (DK)
7.0% due 11/10/24 ..................... 5,100 901
8.0% due 05/15/03 ..................... 12,600 2,098
9.0% due 11/15/00 ..................... 13,100 2,100
Kingdom of Spain - Notes (ES)
3.1% due 09/20/06 ..................... 2,180,000 17,708
Kingdom of Sweden - Bonds (SE)
10.25% due 05/05/00 ................... 8,100 1,121
Kingdom of Sweden - Debs. (SE)
6.25% due 12/08/99 .................... 600 1,029
6.75% due 05/05/14 .................... 5,500 805
Republic of Italy - Debs. (IT)
9.0% due 11/01/23 ..................... 3,600,000 2,994
10.5% due 04/28/14 .................... 4,000 9,466
12.0% due 01/01/02 .................... 8,650,000 6,003
Republic of Italy - Notes (IT)
3.5% due 06/20/01 ..................... 620,000 4,833
5.0% due 01/15/01 ..................... 12,300,000 7,007
8.5% due 01/01/04 ..................... 4,600,000 3,049
8.75% due 07/01/06 .................... 6,800,000 4,775
----------
146,229
Government Agencies - 1.3%
Hydro-Quebec - Notes Ser. B (CA)
7.91% due 11/18/24 .................... 11,145 14,223
Hydro-Quebec - Bonds (CA)
10.87% due 07/25/01 ................... 1,250 976
Ontario-Hydro (CA)
9.0% due 06/24/02 ..................... 1,950 1,490
9.0% due 06/24/02 ..................... 1,500 1,151
Queensland Treasury (AU)
8.0% due 08/14/01 ..................... 2,300 1,533
Queensland Treasury (AU)
8.0% due 09/14/07 ..................... 1,600 1,141
Tennessee Valley Authority - Bonds (US)
6.37% due 09/18/06 .................... 11,000 6,688
Treuhandanstalt (DE)
7.75% due 10/01/02 .................... 21,250 13,302
----------
40,504
Health Care Services - 0.7%
Tenet Healthcare Corp. (AU)
8.0% due 01/15/05 ..................... 22,890 23,495
Media - TV / Radio - 0.4%
Viacom, Inc. (AU)
7.75% due 06/01/05 .................... 12,500 13,373
Oil - Equipment and Services - 1.2%
Petroleum Geo-Services ASA - Notes (NO)
7.5% due 03/31/07 ..................... 14,730 15,994
7.12% due 03/30/28 .................... 22,500 23,249
----------
39,243
Paper and Forest Products - 0.5%
James River Corp. - Unsub. (US)
6.75% due 10/01/99 .................... 15,005 15,107
Telephone - 0.7%
WorldCom, Inc. - Notes (US)
7.75% due 04/01/07 .................... 19,560 21,130
Transportation Services - 0.4%
Delta Air Lines - Debs. (US)
9.75% due 05/15/21 .................... 9,805 12,971
U.S. Governmental - 15.2%
U.S. Treasury - Notes (US)
5.62% due 10/31/99 .................... 4,000 4,004
5.87% due 02/28/99 .................... 64,845 65,018
6.37% due 05/15/99 .................... 19,700 19,842
6.75% due 05/31/99 .................... 57,700 58,322
6.12% due 09/30/00 .................... 128,585 130,172
U.S. Treasury - Bonds (US)
6.12% due 11/15/27 .................... 108,460 116,221
U.S. Treasury - Notes (US)
5.5% due 05/31/03 ..................... 41,930 41,937
5.62% due 05/15/08 .................... 21,400 21,694
5.75% due 11/15/00 .................... 21,650 21,758
----------
478,968
----------
TOTAL PUBLICLY-TRADED BONDS- 37.0% 1,164,841
92
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 1.1%
Investment in joint trading account
(Note B) (US)
5.88% due 07/01/98 ....................... $ 33,982 $ 33,987
----------- ----------
TOTAL INVESTMENTS- 99.3% 3,124,609
Cash and Receivables, less payables- 0.7% 22,077
----------- ----------
NET ASSETS- 100.0% $3,146,686
=========== ==========
* Non-income producing security.
ADR -American Depository Receipt
See notes to financial statement.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market % of
Country Country Value Long-Term
Abbreviation (000's) Investments
UNITED STATES ... US $2,760,385 89.3%
AUSTRALIA ....... AU 55,497 1.8%
CANADA .......... CA 44,189 1.4%
ITALY ........... IT 38,126 1.2%
GERMANY ......... DE 35,400 1.1%
FRANCE .......... FR 32,108 1.0%
JAPAN ........... JP 26,328 0.9%
UNITED KINGDOM .. GB 23,864 0.8%
NORWAY .......... NO 23,249 0.8%
SPAIN ........... ES 17,708 0.6%
NETHERLAND ...... NL 11,107 0.4%
CAYMAN ISLANDS .. KY 8,548 0.3%
SWEDEN .......... SE 6,044 0.2%
DENMARK ......... DK 5,099 0.2%
LUXEMBOURG ...... LU 2,970 0.1%
---------- -----
$3,090,622 100.0%
========== =====
93
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.5%
AAR Corp. - Debs.
9.5% due 11/01/01 .......................... $ 320 $ 345
Automobile - 0.3%
Hertz Corp. - Sr. Notes
7.37% due 06/15/01 ......................... 200 206
Banks - 11.0%
Bankponce Corp. - Notes
6.54% due 11/06/01 ......................... 1,000 1,009
6.55% due 10/10/00 ......................... 1,100 1,113
Capital One Bank - Notes
5.95% due 02/15/01 ......................... 550 547
6.83% due 08/16/99 ......................... 325 327
7.0% due 04/30/01 .......................... 1,000 1,020
8.12% due 03/01/00 ......................... 450 464
Capital One Bank - Sr. Notes
7.08% due 10/30/01 ......................... 250 255
First Hawaiian, Inc. - Sub. Notes
6.25% due 08/15/00 ......................... 2,000 2,007
MBNA Corp. - Sr. Notes
6.5% due 09/15/00 .......................... 200 201
-------
6,943
Brokerage and Investment Management - 0.4%
Paine Webber Group, Inc. - Debs
9.25% due 12/15/01 ......................... 250 274
Business Services - 1.7%
Comdisco, Inc. - Notes
5.75% due 02/15/01 ......................... 887 880
7.75% due 09/01/99 ......................... 170 173
-------
1,053
Consumer - Miscellaneous - 7.2%
Dial Corp. - Notes
5.9% due 10/25/01 .......................... 2,000 1,979
Service Corp. International - Notes
6.75% due 06/01/01 ......................... 2,500 2,542
-------
4,521
Diversified Operations - 2.2%
Loewen Group International, Inc. - Notes
7.2% due 06/01/03 .......................... 1,000 1,002
Williams Holdings of Delaware - Notes
6.68% due 06/13/00 ......................... 350 354
-------
1,356
Electric Power - 4.2%
Commonwealth Edison - Notes
9.05% due 10/15/99 ......................... 150 155
Niagara Mohawk Power - Sr. Notes
6.5% due 07/01/99 .......................... 2,000 2,000
Utilicorp United, Inc. - Sr. Notes
8.45% due 11/15/99 ......................... 500 514
-------
2,669
Financial Services - 6.9%
Advanta Corp. - Notes
6.01% due 10/01/98 ......................... 1,000 1,000
Gatx Capital Corp. - Notes
6.5% due 11/01/00 .......................... 1,750 1,763
Heller Financial, Inc. - Notes
6.14% due 04/13/00 ......................... 100 100
6.25% due 03/01/01 ......................... 1,500 1,503
-------
4,366
Food, Beverage and Tobacco - 1.0%
Universal Corp. - Debs
9.25% due 02/15/01 ......................... 598 641
Government Agencies - 8.3%
Federal Farm Credit Bank - Notes
5.7% due 11/16/98 .......................... 400 400
7.55% due 10/30/98 ......................... 100 101
Federal Home Loan Bank - Notes
5.9% due 09/21/98 .......................... 880 881
Federal Home Loan Mortgage Corp. - Debs
5.02% due 02/15/99 ......................... 420 418
Private Export Funding Co. - Debs
9.5% due 03/31/99 .......................... 750 770
State of Israel Agency for International
Development
6.0% due 02/15/99 .......................... 750 752
United States Treasury - Notes
5.5% due 05/31/00 .......................... 1,930 1,930
-------
5,252
Health Care Services - 4.2%
Kaiser Foundation Hospital - Debs
9.0% due 11/01/01 .......................... 500 543
Tenet Healthcare Corp. - Sr. Notes
8.62% due 12/01/03 ......................... 2,000 2,131
-------
2,674
Insurance - 0.2%
USF&G Corp. - Sr. Notes
8.37% due 06/15/01 ......................... 105 111
Media - TV / Radio - 9.3%
CBS, Inc. - Sr. Notes
7.75% due 06/01/99 ......................... 600 606
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 .......................... 1,010 1,077
News America Holdings, Inc. - Sr. Notes
7.45% due 06/01/00 ......................... 750 766
Paramount Communications, Inc. - Sr. Notes
5.87% due 07/15/00 ......................... 2,920 2,887
TCI Communications, Inc. - Sr. Notes
6.37% due 09/15/99 ......................... 152 153
7.25% due 06/15/99 ......................... 190 192
94
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Media - TV / Radio - Continued
Time Warner, Inc. - Notes
7.95% due 02/01/00 .......................... $ 150 $ 154
-------
5,835
Metal Product and Fabrication - 0.2%
Reynolds Metals Co. - Debs.
9.37% due 06/15/99 .......................... 100 103
Oil - Equipment and Services - 10.8%
Gulf Canada Resources, Ltd. - Debs.
9.0% due 08/15/99 ........................... 1,250 1,288
Mitchell Energy & Development - Sr. Notes
8.0% due 07/15/99 ........................... 2,250 2,287
Occidental Petroleum Corp. - Notes
6.75% due 09/16/99 .......................... 1,010 1,018
Occidental Petroleum Corp. - Notes
7.09% due 09/08/99 .......................... 403 408
Occidental Petroleum Corp. - Sr. Notes
8.5% due 11/09/01 ........................... 1,000 1,071
Oryx Energy Co. - Debs.
10.0% due 06/15/99 .......................... 715 737
-------
6,809
Paper and Forest Products - 0.4%
Champion International Corp. - Debs.
9.7% due 05/01/01 ........................... 220 240
Pollution Control - 4.6%
WMX Technologies, Inc. - Notes
7.12% due 06/15/01 .......................... 220 225
WMX Technologies, Inc. - Notes
8.25% due 11/15/99 .......................... 2,600 2,667
-------
2,892
Real Estate Investment Trust - 10.5%
Camden Property Trust - Notes
6.62% due 02/15/01 .......................... 2,700 2,709
Developers Diversified Realty - Sr. Notes
7.37% due 09/18/01 .......................... 375 390
Franchise Finance Corp. of America - Sr. Notes
7.0% due 11/30/00 ........................... 2,400 2,426
Taubman Realty Group, Ltd. - Notes
8.0% due 07/30/01 ........................... 1,045 1,091
-------
6,616
Shoe and Apparel Manufacturing - 8.2%
Fruit of The Loom, Inc. - Sr. Notes
7.87% due 10/15/99 .......................... 1,000 1,008
Woolworth Corp. - Notes
6.98% due 10/15/01 .......................... 1,625 1,659
Woolworth Corp. - Notes
7.0% due 06/01/00 ........................... 2,450 2,483
-------
5,150
Transportation Services - 5.5%
Amr Corp. - Debs.
10.0% due 02/01/01 .......................... 515 563
Federal Express Corp. - Sr. Notes
10.0% due 04/15/99 .......................... 2,600 2,677
Ryder Systems, Inc. - Notes
6.7% due 08/31/01 ........................... 200 204
-------
3,444
-------
TOTAL PUBLICLY-TRADED BONDS- 97.6% 61,500
SHORT-TERM INVESTMENTS - 1.0%
Investment in joint trading account (Note B)
5.88% due 07/01/98 .......................... 633 633
------ -------
TOTAL INVESTMENTS- 98.6% 62,133
Cash and Receivables, less payables- 1.4% 873
------ -------
NET ASSETS- 100.0% $63,006
====== =======
See notes to financial statements.
95
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.6%
BE Aerospace, Inc.* ...................... 6,700 $ 195
GenCorp, Inc. ............................ 6,600 167
-------
362
Auto and Truck Parts - 1.8%
Arvin Industries, Inc. ................... 14,000 509
Detroit Diesel Corp.* .................... 12,400 267
Magna Group, Inc. ........................ 6,600 373
-------
1,149
Banks - 6.5%
Commerce Bancorp, Inc. ................... 6,500 380
Downey Financial Corp. ................... 20,090 657
Firstbank Puerto Rico .................... 11,400 296
Flagstar Bancorp, Inc. ................... 5,900 144
HUBCO, Inc. .............................. 8,100 290
Imperial Bancorp* ........................ 14,150 424
Independent Bank Corp. ................... 7,600 147
Peoples Heritage Financial Group, Inc. ... 17,400 411
Provident Bankshares Corp.* .............. 8,190 242
Riggs National Corp. ..................... 8,100 237
Silicon Valley Bancshares* ............... 5,800 206
T R Financial Corp. ...................... 7,400 310
Trustmark Corp. .......................... 6,000 132
U.S. Trust Corp. ......................... 2,600 198
-------
4,074
Business Services - 1.0%
BancTec, Inc.* ........................... 7,900 183
Express Scripts, Inc. - Cl. A* ........... 5,900 475
-------
658
Chemicals - 0.8%
Ferro Corp. .............................. 12,000 304
NL Industries ............................ 9,200 184
-------
488
Commercial Services - 4.2%
Budget Group, Inc.* ...................... 4,200 134
Caribiner International, Inc.* ........... 2,600 45
Consolidated Graphics , Inc.* ............ 5,100 301
DeVry, Inc.* ............................. 16,800 369
DII Group, Inc.* ......................... 11,300 193
E'Town Corp. ............................. 1,200 45
Mail-Well Holdings, Inc.* ................ 22,200 481
StaffMark, Inc. .......................... 7,100 260
Veritas DGC, Inc.* ....................... 16,500 824
-------
2,652
Computer Equipment - 0.5%
Stratus Computer, Inc.* .................. 13,100 332
Computer Software and Services - 5.9%
Aspen Technologies, Inc.* ................ 3,800 192
Computer Horizons Corporation* ........... 3,900 145
Information Management Resources,
Inc.* .................................. 12,300 416
Inter-Tel, Inc. .......................... 19,400 310
Legato Systems, Inc.* .................... 9,100 355
Manugistics Group, Inc.* ................. 2,600 64
Mastech Corp. ............................ 21,300 599
Micros Systems, Inc. ..................... 5,600 185
Pinnacle Systems, Inc. ................... 6,400 207
Platinum Technology, Inc.* ............... 6,800 194
Symantec Corp.* .......................... 6,400 167
Systems & Computer Technology Corp.* ..... 12,200 330
Vanstar Corp. ............................ 36,600 533
-------
3,697
Construction - 4.2%
Centex Construction Products ............. 4,900 189
Dycom Industries, Inc. ................... 11,400 385
Jacobs Engineering Group, Inc.* .......... 17,600 565
NVR, Inc.* ............................... 11,900 489
Southdown, Inc. .......................... 7,000 499
U.S. Home Corp.* ......................... 13,000 536
-------
2,663
Consumer - Miscellaneous - 1.4%
Herbalife International, Inc. - Cl. A .... 1,700 42
Romac International, Inc. ................ 17,000 516
Russ Berrie & Co., Inc. .................. 13,500 338
-------
896
Cosmetics and Personal Care Products - 0.9%
AptarGroup, Inc. ......................... 9,600 597
Diversified Operations - 2.9%
Cameron Ashley Building Products* ........ 9,200 155
Eastern Enterprises ...................... 5,200 223
Gerber Scientific, Inc. .................. 25,500 580
Hawaiian Electric Industries ............. 9,600 381
NACCO Industries, Inc. - Cl. A ........... 1,900 246
Parexel International Corp.* ............. 6,300 229
-------
1,814
Electric Power - 1.8%
Black Hills Corp. ........................ 3,150 72
Central Maine Power Co. .................. 3,800 74
Cilcorp, Inc. ............................ 5,200 250
Cleco Corp. .............................. 8,900 265
Interstate Energy Corp. .................. 9,690 315
Minnesota Power, Inc. .................... 4,700 187
-------
1,163
Electrical Equipment - 0.6%
Integrated Circuit Systems* .............. 11,100 184
SIGCORP, Inc. ............................ 6,600 212
-------
396
96
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Products and Services - 3.2%
Asyst Technologies, Inc.* .............. 15,000 $ 189
Avid Technology, Inc. .................. 4,600 154
Berg Electronics Corp.* ................ 13,600 266
CHS Electronics, Inc. .................. 23,900 427
DSP Communications, Inc.* .............. 10,400 143
DSP Group, Inc. ........................ 10,600 209
PMC - Sierra, Inc.* .................... 6,900 324
Technitrol, Inc. ....................... 7,000 280
-------
1,992
Financial Services - 2.2%
Advest Group, Inc. ..................... 6,400 185
CMAC Investment Corp. .................. 3,100 191
Doral Financial Corp. .................. 7,800 136
FirstFed Financial Corp.* .............. 13,000 676
FIRSTPLUS Financial Group, Inc.* ....... 6,100 220
-------
1,408
Food, Beverage and Tobacco - 3.3%
Adolph Coors Co. - Cl. B ............... 5,900 201
Canandaigua Brands Inc. - Cl. A* ....... 14,800 728
DIMON, Inc. ............................ 15,500 174
Showbiz Pizza Time, Inc.* .............. 12,600 508
Smithfield Foods, Inc.* ................ 9,100 278
Universal Corp. ........................ 5,900 220
-------
2,109
Health Care Products - 4.6%
Agouron Pharmaceuticals, Inc.* ......... 4,100 124
Arterial Vascular Engineering, Inc.* ... 9,700 347
ATL Ultrasound, Inc.* .................. 9,300 424
Hanger Orthopedic Group, Inc. .......... 10,000 204
ICN Pharmaceuticals, Inc. .............. 5,700 261
Incyte Pharmacuticals, Inc.* ........... 6,100 208
MedImmune, Inc.* ....................... 5,100 318
Rexall Sundown, Inc.* .................. 6,300 222
Safeskin Corp.* ........................ 18,500 761
-------
2,869
Health Care Services - 7.0%
ADAC Laboratories ...................... 18,000 405
AmeriSource Health Corp. - Cl.A* ....... 2,400 158
Assisted Living Concepts, Inc.* ........ 25,200 435
Bindley Western Industries ............. 27,666 913
Integrated Health Services, Inc. ....... 9,400 353
Marquette Medical Systems* ............. 6,600 169
NovaCare, Inc.* ........................ 16,800 197
Sun Healthcare Group, Inc. ............. 16,100 235
Theragenics Corp. ...................... 24,000 625
Trigon Healthcare, Inc.* ............... 25,500 923
-------
4,413
Household Appliances / Furnishings - 2.9%
Ethan Allen Interiors, Inc. ............ 8,600 429
Furniture Brands International, Inc.* .. 16,100 452
Knoll, Inc. ............................ 13,500 398
Springs Industries, Inc. - Cl. A ....... 11,400 526
-------
1,805
Housing - 0.9%
Kaufman & Broad Home Corp. ............. 14,000 445
Pulte Corp. ............................ 4,800 143
TJ International, Inc. ................. 6,700 202
-------
790
Insurance - 6.2%
American Heritage Life Investment ...... 7,800 180
Delphi Financial Group, Inc. - Cl. A* .. 6,354 358
FBL Financial Group - Cl. A ............ 29,000 743
Fidelity National Financial, Inc. ...... 11,500 458
Fremont General Corp. .................. 6,200 336
Guarantee Life Cos., Inc. .............. 6,700 147
LandAmerica Financial Group, Inc. ...... 11,200 641
Life Re Corp. .......................... 2,100 172
Orion Capital Corp. .................... 12,900 721
Selective Insurance Group .............. 6,100 137
-------
3,893
Leisure and Recreation - 3.0%
Anchor Gaming* ......................... 9,100 706
Bristol Hotel Co.* ..................... 16,550 406
Grand Casinos* ......................... 29,000 486
Prime Hospitality Corp.* ............... 18,200 317
-------
1,915
Machinery - 2.6%
Applied Power, Inc. .................... 9,000 309
Cincinnati Milacron, Inc. .............. 6,500 158
Gencor Industries, Inc. ................ 6,800 137
Graco, Inc. ............................ 10,950 382
Terex Corp.* ........................... 23,800 678
-------
1,664
Media - Publishing - 0.4%
True North Communications .............. 9,200 269
Media - TV / Radio - 1.7%
Generale Cable Corp. ................... 28,200 814
Media General, Inc. - Cl. A ............ 4,600 224
-------
1,038
Metals and Mining - 0.7%
Johnstown America Industries, Inc. ..... 11,300 196
Maverick Tube Corp.* ................... 21,300 248
-------
444
Natural Gas Distribution - 1.0%
Commonwealth Energy System ............. 2,200 83
Energen Corporation .................... 6,000 121
KN Energy, Inc. ........................ 2,700 146
97
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Natural Gas Distribution - Continued
NUI Corp. ........................... 11,400 $ 290
-------
640
Oil - Equipment and Services - 2.4%
Cliffs Drilling Company* ............ 7,100 233
Daniel Industries ................... 31,900 606
Marine Drilling Companies, Inc.* .... 23,900 383
St. Mary Land & Exploration Company . 4,900 118
Varco International, Inc.* .......... 9,800 194
-------
1,534
Oil and Natural Gas Exploration and
Production - 0.3%
ONEOK, Inc. ......................... 4,500 179
Paper and Forest Products - 1.2%
United Stationers, Inc.* ............ 11,300 732
Real Estate Investment Trust - 6.5%
American General Hospitality ........ 7,400 157
CBL & Associates Properties, Inc. ... 24,800 602
Essex Property Trust, Inc. .......... 6,300 195
Felcor Suite Hotels, Inc. ........... 5,800 182
First Industrial LP* ................ 6,800 216
Gables Residential Trust ............ 21,500 583
Kimco Realty Corp. .................. 828 23
Koger Equity, Inc.* ................. 27,000 545
Liberty Property Trust .............. 8,500 217
Merry Land & Investment Co. ......... 14,300 301
Prentiss Properties Trust ........... 8,700 212
RFS Hotel Investors, Inc. ........... 12,800 243
Shurgard Storage Centers, Inc. ...... 22,400 622
-------
4,098
Real Estate Operations - 0.7%
M.D.C. Holdings, Inc. ............... 10,000 198
Mack-Cali Realty Corporation ........ 6,200 213
-------
411
Retail - Department Stores - 3.9%
Abercrombie & Fitch Co.* ............ 7,600 334
Ames Department Stores, Inc.* ....... 8,000 210
Footstar, Inc.* ..................... 13,600 653
Pier 1 Imports, Inc. ................ 17,700 423
Proffitt's, Inc.* ................... 7,600 307
Shopko Stores, Inc. ................. 15,800 537
-------
2,464
Retail - Food - 1.3%
Brinker International, Inc.* ........ 19,200 369
Cheesecake Factory, The ............. 8,700 197
CKE Restaurants, Inc. ............... 5,500 227
-------
793
Shoe and Apparel Manufacturing - 1.5%
American Eagle Outfitters ........... 4,100 158
Burlington Industries, Inc.* ........ 26,800 377
Kellwood Co. ........................ 10,900 390
-------
925
Steel - 1.9%
National Steel Corp. - Cl. B* ....... 44,100 523
Texas Industries, Inc. .............. 12,600 668
-------
1,191
Telecommunication Services - 1.1%
Pacific Gateway Exchange, Inc. ...... 3,900 156
SmarTalk Teleservices, Inc. ......... 23,000 335
Winstar Communications, Inc.* ....... 4,300 185
-------
676
Telecommunications Equipment - 2.3%
Brightpoint, Inc.* .................. 19,000 275
Centennial Cellular Corp. - Cl. A* .. 6,900 257
Powertel, Inc. ...................... 9,400 174
Superior Telecom, Inc. .............. 7,700 321
Tekelec, Inc. ....................... 9,600 430
-------
1,457
Telephone - 0.5%
E Spire Communications, Inc. ........ 13,600 307
Transportation Services - 0.8%
Airbourne Freight Corp. ............. 6,600 231
America West Holdings Corp. - Cl. B* 8,900 254
-------
485
-------
TOTAL COMMON STOCK- 97.5% 61,442
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.7%
Investment in joint trading account
(Note B)
5.88% due 07/01/98 ................. $ 1,721 1,721
------- -------
TOTAL INVESTMENTS- 100.2 % 63,163
Payables, less cash and receivables- (0.2)% (113)
------- -------
NET ASSETS- 100.0 % $63,050
======= =======
* Non-income producing security.
See notes to financial statement.
98
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.8%
Banco de Galicia y Buenos Aires SA de CV
(BANK) ..................................... 1,352 $ 24
Banco Frances del Rio de la Plata SA
(BANK) ..................................... 1,427 33
Perez Companc SA (OILE) ..................... 7,934 40
Telefonica de Argentina SA - ADR (UTIT)
ADR ........................................ 2,440 79
YPF Sociedad Anonima - ADR (OILX) ........... 6,522 196
-------
372
Australia - 2.0%
AMP Limited (INSU) .......................... 5,000 59
Australian Gas & Light Co., Ltd. - ADR
(UTIG) ..................................... 10,164 64
Brambles Industries, Ltd. (DIOP) ............ 3,000 59
Broken Hill Proprietary Co., Ltd. (DIOP) .... 8,792 74
Colonial, Ltd. (FINL) ....................... 14,000 42
Commonwealth Bank (BANK) .................... 7,008 82
Foster's Brewing Group, Ltd. (FOOD) ......... 10,000 24
Gio Australia Holding, Ltd. (INSU) .......... 7,000 18
Goodman Fielder, Ltd. (FOOD) ................ 24,000 35
John Fairfax Holdings Ltd. (MEDP) ........... 21,000 37
Lend Lease Corp. (FINL) ..................... 3,061 62
National Australia Bank, Ltd. (BANK) ........ 4,088 54
News Corp., Ltd. (MEDI) ..................... 13,022 107
Publishing & Broadcasting, Ltd. (MEDP) ...... 9,000 39
Sydney Harbour Casino Holdings, Ltd.*
(LEIS) ..................................... 33,000 19
TABCORP Holdings, Ltd. (LEIS) ............... 8,000 41
Telstra Corp., Ltd.* (TELS) ................. 21,000 54
Westpac Banking Corp., Ltd. (BANK) .......... 13,282 81
Woodside Petroleum, Ltd. (OILX) ............. 7,000 35
-------
986
Belgium - 2.5%
Axa UAP-CTF de Valeur Garant (INSU) ......... 770 87
Credit Communal Holding/Dexia (BANK) ........ 389 58
Fortis AG (INSU) ............................ 770 197
KBC Bankverzekeringgs (BANK) ................ 8,800 788
UCB SA (HEAL) ............................... 19 99
-------
1,229
Brazil - 1.8%
Centrais Electricas Brasileiras S,A. - ADR
(UTIE) ..................................... 252 4
Centrais Geradoras Sul do Brasil S.A. - ADR
(UTIE) ..................................... 25
Companhia Siderurgica Nacional - S.A. -
ADR (STEE) ................................. 1,000 24
Compania Brasileira de Distribuicao Grupo Pao
de Acucar (RETF) ........................... 1,057 24
Compania Energetica de Minas (UTIE) ......... 3,121 97
Telecomunicacoes Brasileiras S/A-Telebras -
ADR (TELE) ................................. 6,144 671
Unibanco Uniao De Bancos Brasileiros SA - ADR
(UTIE) .................................... 2,000 59
-------
879
Canada - 0.2%
Alcan Aluminum, Ltd. (META) ................. 2,340 64
Royal Bank of Canada (BANK) ................. 650 39
-------
103
Chile - 0.1%
Chilectra SA - ADR (UTIE) ................... 645 14
Compania Cervecerias Unidas SA (FOOD) ....... 200 4
Enersis SA - ADR (UTIE) ..................... 503 12
-------
30
China - 0.2%
Huaneng Power International, Inc. - ADR*
(UTIE) ..................................... 6,000 81
Denmark - 0.2%
Den Danske Bank (BANK) ...................... 570 68
Tele Danmark A/S (TELS) ..................... 80 8
Unidanmark A/S - Cl. A (BANK) ............... 490 44
-------
120
Finland - 0.4%
Oy Nokia AB - ADR (TELE) .................... 2,860 211
France - 10.9%
Accor SA (LEIS) ............................. 260 73
Alcatel Alsthom (TELE) ...................... 1,654 337
AXA SA (INSU) ............................... 2,334 262
Canal Plus (MEDI) ........................... 380 71
Carrefour SA (RETF) ......................... 271 171
Compagnie de St. Gobain - ADR (CONS) ........ 1,360 252
Vivendi (DIOP) .............................. 3,340 713
Credit Commercial de France (BANK) .......... 1,783 150
Credit Local de France (FINL) ............... 126 17
Dexia France (BANK) ......................... 380 51
Elf Aquitaine (OILX) ........................ 1,320 186
Group Danone* (FOOD) ........................ 880 243
GTM Entrepose SA (ENGI) ..................... 200 21
L'Oreal (HNBA) .............................. 125 70
Lafarge SA (CONS) ........................... 639 66
Lapeyre SA (HOUS) ........................... 640 60
Legrand SA (ELEQ) ........................... 354 94
Pathe SA* (MEDI) ............................ 230 45
Pinault-Printemps-Redoute SA (RETS) ......... 734 614
Primagaz Cie (OILX) ......................... 240 21
Sanofi SA (HEAL) ............................ 2,052 241
Schneider SA (MACH) ......................... 3,871 309
Societe Generale de Paris (BANK) ............ 958 199
Societe Television Francaise 1 (MEDI) ....... 1,430 222
Sodexho SA (LEIS) ........................... 1,730 327
99
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
France - Continued
Total SA - Cl. B (OILX) .................... 4,131 $ 537
-------
5,352
Germany - 7.5%
Allianz AG - Reg (FOOD) .................... 750 250
Bayer AG (CHEM) ............................ 4,469 231
Bayerische Hypotheken-und Wechsel-Bank AG
(BANK) ................................... 3,363 213
Bayerische Vereinsbank AG (BANK) ........... 2,510 213
Bilfinger & Berger Bau AG (CONS) ........... 500 17
Buderus AG (DIOP) .......................... 30 15
Commerzbank AG (BANK) ...................... 1,080 41
Deutsche Bank AG (BANK) .................... 3,799 321
Deutsche Telekom AG* (TELS) ................ 6,456 177
Dresdner Bank AG (BANK) .................... 3,581 194
Fielmann AG - Pref. (RETS) ................. 130 5
Gehe AG (HEAL) ............................. 5,678 305
Hoechst AG (INSU) .......................... 1,670 84
Hornbach Holding AG - Pref. (RETS) ......... 550 50
Hornback Baumarkt Aktiengesellschaft
(RETF) .................................... 80 4
Mannesmann AG (MACH) ....................... 3,320 342
Rhoen-Klinikum AG (HEAL) ................... 760 75
SAP AG (SOFT) .............................. 640 389
SAP AG (SOFT) .............................. 372 253
Siemens AG (DIOP) .......................... 1,507 92
VEBA AG (DIOP) ............................. 4,895 329
Volkswagen AG (AUTO) ....................... 86 83
-------
3,683
Hong Kong - 1.1%
CLP Holdings, Ltd. (UTIE) .................. 21,000 96
Hang Seng Bank, Ltd. (BANK) ................ 7,000 39
Henderson Land Development Co., Ltd. .......
(READ) .................................... 20,000 66
Hong Kong & China Gas Co., Ltd. (UTIG) ..... 41,700 47
Hong Kong Telecommunications, Ltd. .........
(TELS) .................................... 37,600 71
Hutchison Whampoa, Ltd. (COMM) ............. 38,000 201
-------
520
Italy - 5.4%
Assicurazioni Generali (INSU) .............. 5,640 183
Banca Commerciale Italiana (BANK) .......... 9,000 54
Banca Di Roma (BANK) ....................... 123,000 256
Credito Italiano SpA (BANK) ................ 63,393 332
Ente Nazionale Idrocarburi SpA (OILS) ...... 49,784 326
Industrie Natuzzi SpA - ADR (APPL) ......... 2,000 52
Istituto Mobiliare Italiano SpA (FINL) ..... 10,960 173
Istituto Nazionale delle Assicurazioni
(INSU) .................................... 32,000 91
Italgas SpA (UTIG) ......................... 10,000 41
La Rinascente SpA (RETF) ................... 1,000 10
Mediolanum SpA* (INSU) ..................... 5,331 169
Telecom Italia Mobile (TIM) SpA (FOOD) ..... 65,000 398
Telecom Italia SpA* (TELS) ................. 75,444 556
-------
2,641
Japan - 15.4%
Advantest (ETRN) ........................... 400 22
Alps Electric Co. (ETRN) ................... 7,000 84
Amada Co., Ltd (MACH) ...................... 8,000 39
Canon, Inc. (COMM) ......................... 20,000 456
Citizen Watch Co., Ltd. (APPA) ............. 7,000 58
Daifuku Co., Ltd. (MACH) ................... 1,000 4
Daiichi Pharmaceutical Co., Ltd. (HEAL) .... 8,000 106
Dainippon Screen Manufacturing Co., Ltd. ...
(ELEQ) .................................... 7,000 29
Daiwa House Industry Co., Ltd. (HOUS) ...... 12,000 106
DDI Corp. (UTIT) ........................... 21 73
East Japan Railway Co. (TRAN) .............. 35 165
Fanuc, Ltd. (ELEQ) ......................... 2,700 94
Fujitsu, Ltd. (ELEQ) ....................... 4,000 42
Hitachi Zosen Corp. (CONS) ................. 7,000 11
Hitachi, Ltd. (ETRN) ....................... 24,000 157
Honda Motor Co. (AUTO) ..................... 2,000 72
Inax Corp. (CONS) .......................... 2,000 7
Ito-Yokado Co., Ltd. (RETS) ................ 6,000 283
KAO Corp. (HNBA) ........................... 9,000 139
Kokuyo Co. (COMM) .......................... 6,000 102
Komatsu, Ltd. (MACH) ....................... 8,000 39
Komori Corp. (MACH) ........................ 5,000 95
Kuraray Co., Ltd. (APPA) ................... 15,000 128
Kyocera Corp. (ETRN) ....................... 5,000 245
Makita Corp. (CNSU) ........................ 9,000 104
Marui Co., Ltd. (RETS) ..................... 13,000 195
Matsushita Electric Industrial Co. (ETRN) .. 21,000 339
Mitsubishi Corp. (DIOP) .................... 11,000 68
Mitsubishi Heavy Industries, Ltd. (MACH) ... 60,000 227
Mitsui Fudosan (REAL) ...................... 31,000 246
Murata Manufacturing Co., Ltd. (ETRN) ...... 6,000 195
NEC Corp. (COMP) ........................... 32,000 299
Nippon Telegraph & Telephone Corp. (UTIT) .. 16 133
Nippondenso Co., Ltd. (ETRN) ............... 21,000 349
Nomura Securities Co., Ltd. (FUND) ......... 21,000 245
Pioneer Electronic Corp. (ETRN) ............ 4,000 77
Sangetsu Co., Ltd. (CNSU) .................. 1,000 13
Sankyo Co., Ltd. (HEAL) .................... 15,000 343
Sega Enterprises (CNSU) .................... 1,200 21
Sekisui Chemical Co. (CHEM) ................ 14,000 72
Sekisui House, Ltd. (CONS) ................. 10,000 78
Seven-Eleven Japan (RETF) .................. 2,000 120
Sharp Corp. (ETRN) ......................... 3,000 24
Shin-Etsu Chemical Co. (CHEM) .............. 11,000 191
Shiseido Co., Ltd. (HNBA) .................. 6,000 68
Sony Corp. (ETRN) .......................... 5,300 458
Sumitomo Corp. (DIOP) ...................... 22,000 106
Sumitomo Electric Industries (TELE) ........ 29,000 294
100
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
Sumitomo Forestry Co. (PAPR) .................. 3,000 $ 17
TDK Corp. (COMP) .............................. 5,000 371
Tokio Marine & Fire Insurance Co. (INSU) ...... 5,000 52
Tokyo Electron, Ltd. (ETRN) ................... 3,100 95
Tokyo Steel Manufacturing (STEE) .............. 2,500 13
Toppan Printing Co. (CNSU) .................... 10,000 107
UNY Co., Ltd. (RETS) .......................... 6,000 98
Yurtec Corp. (ENGI) ........................... 50
-------
7,574
Mexico - 1.3%
Cemex SA de CV (CONS) ......................... 60
Cemex SA de CV - ADR (CONS) ................... 8,000 35
Cemex SA de CV - ADR* (CONS) .................. 14,030 105
Fomento Economico Mexicano SA de C.V. .........
(FOOD) ....................................... 2,000 62
Gruma SA* (FOOD) .............................. 9,114 20
Gruma SA - ADR 144A* (FOOD) ................... 989 9
Grupo Financiero Banamex Accival SA de CV*
(BANK) ...................................... 6,300 12
Grupo Industrial Maseca SA de CV (FOOD) ....... 12,630 9
Grupo Modelo SA de CV (FOOD) .................. 4,000 34
Grupo Televisa SA - GDR* (MEDI) ............... 1,907 72
Kimberly-Clark de Mexico SA de CV
(PAPR) ....................................... 16,170 57
Telefonos de Mexico SA (CONS) ................. 4,560 219
-------
634
Netherlands - 11.5%
ABN Amro Holding NV (BANK) .................... 10,346 242
Akzo Nobel NV (CHEM) .......................... 260 58
ASM Lithography Holding NV (ETRN) ............. 5,330 158
Baan Co., NV* (SOFT) .......................... 1,160 42
CSM NV (FOOD) ................................. 4,268 205
Elsevier NV (MEDP) ............................ 25,010 378
Fortis Amev NV (INSU) ......................... 4,460 261
Gucci Group NV (APPA) ......................... 815 43
ING Groep NV (BANK) ........................... 13,670 896
Koninklijke Ahold NV (RETF) ................... 3,593 115
Koninklijke KPN NV (UTIT) ..................... 1,130 44
Koninklijke Numica NV (ETRN) .................. 2,625 82
Philips Electronics NV (ETRN) ................. 2,350 198
PolyGram NV (MEDI) ............................ 4,540 232
Royal Dutch Petroleum Co. (OILS) .............. 20,710 1,149
STMicroelectronics NV (ETRN) .................. 500 35
TNT Post Group NV (TRAN) ...................... 1,130 29
Unilever NV (CNSU) ............................ 6,750 536
Wolters Kluwer NV (MEDP) ...................... 6,763 929
-------
5,632
New Zealand - 0.2%
Fletcher Challenge Building (CONS) ............ 8,288 10
Fletcher Challenge Energy (OILX) .............. 7,184 17
Telecom Corp. of New Zealand (TELS) ........... 10,000 41
Telecom Corp. of New Zealand - IR (TELS) ...... 4,000 9
-------
77
Norway - 1.6%
Bergesen d.y. ASA - Cl. A (APPA) .............. 250 5
Norsk Hydro ASA (DIOP) ........................ 7,300 321
Orkla ASA (DIOP) .............................. 20,250 471
Saga Petroleum AS - Cl. B (OILX) .............. 400 6
-------
803
Panama - 0.2%
Banco Latinoamericano de Exportaciones SA -
Cl. E (BANK) ................................. 176 6
Panamerican Beverages, Inc. - Cl. A (FOOD) .... 3,160 99
-------
105
Peru - 0.0%
Telefonica del Peru SA - ADR (UTIT) ........... 535 11
Portugal - 0.4%
Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestora de Participacoes Sociais
SA (RETF) .................................... 4,580 220
Russia - 0.0%
Gazprom - ADR (OILX) .......................... 1,380 15
LUKoil Holding - ADR (OILX) ................... 180 6
-------
21
Singapore - 0.1%
Singapore Press Holding, Ltd. (MEDP) .......... 4,932 33
Singapore Telecommunications, Ltd. (TELS) ..... 16,000 23
-------
56
Spain - 2.9%
Banco Bilbao Vizcaya SA (BANK) ................ 1,580 81
Banco Popular Espanol SA (BANK) ............... 1,207 103
Banco Santander SA (BANK) ..................... 12,736 326
Corporacion Bancaria de Espana SA (BANK) ...... 4,800 108
Empresa Nacional de Electricidad SA (UTIE) .... 6,628 145
Gas Natural SDG SA (UTIG) ..................... 1,340 97
Iberdrola SA (UTIE) ........................... 9,010 146
Repsol SA (OILX) .............................. 1,847 102
Telefonica de Espana (UTIT) ................... 6,772 313
-------
1,421
Sweden - 3.6%
ABB AB - Cl. A (MACH) ......................... 9,830 139
Astra AB - Cl. B (HEAL) ....................... 22,526 449
Atlas Copco AB (MACH) ......................... 4,780 130
Electrolux AB - Ser. B (APPL) ................. 12,200 210
Esselte AB - Cl. B (COMM) ..................... 910 21
Granges AB (UTIT) ............................. 495 9
Hennes & Mauritz AB - B Shares (RETS) ......... 6,550 418
Nordbanken Holding (BANK) ..................... 35,154 258
Sandvik AB - Cl. A (MACH) ..................... 530 15
101
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Sweden - Continued
Sandvik AB - Cl. B (MACH) ................... 3,850 $ 106
Scribona AB - Cl. B (UTIT) .................. 290 3
-------
1,758
Switzerland - 6.9%
ABB AG* (ENGI) .............................. 170 252
Adecco SA (COMM) ............................ 595 269
CS Holding AG (BANK) ........................ 1,210 270
Nestle SA (FOOD) ............................ 460 986
Novartis AG* (HEAL) ......................... 356 593
Roche Holding AG (HEAL) ..................... 41 403
UBS AG (BANK) ............................... 1,697 632
-------
3,405
Thailand - 0.1%
Thai Farmers Bank Public Co., Ltd. (BANK) ... 30,000 26
United Kingdom - 19.1%
Abbey National First Capital BV (BANK) ...... 18,000 320
Asda Group plc (RETF) ....................... 50,000 172
BG plc (OILE) ............................... 14,588 84
British Petroleum Co. plc* (OILX) ........... 15,000 219
Cable & Wireless plc (TELE) ................. 33,000 401
Cadbury Schweppes plc (FOOD) ................ 23,000 356
Caradon plc (CONS) .......................... 34,500 106
Centrica plc* (UTIG) ........................ 7,000 12
Compass Group plc (FOOD) .................... 22,000 253
David S. Smith Holdings plc (PAPR) .......... 15,000 48
Diageo plc (FOOD) ........................... 67,112 796
Electrocomponents plc (ETRN) ................ 11,000 86
GKN plc (PART) .............................. 4,000 51
Glaxo Wellcome plc - ADR (HEAL) ............. 26,000 781
Heywood Williams Group plc (CONS) ........... 2,000 9
John Laing plc (HOUS) ....................... 3,000 20
Kingfisher plc (RETS) ....................... 38,000 612
Ladbroke Group plc (LEIS) ................... 20,000 110
National Westminster Bank plc (BANK) ........ 70,000 1,252
Rank Group plc (MEDP) ....................... 22,000 121
Reed International plc (MEDP) ............... 59,000 534
Rolls-Royce plc (AERO) ...................... 11,000 46
RTZ Corp. plc (DIOP) ........................ 16,000 180
Safeway plc (RETF) .......................... 26,000 170
Shell Transport & Trading Co. plc (OILX) .... 89,000 627
SmithKline Beecham plc (HEAL) ............... 85,800 1,048
Tesco plc (RETF) ............................ 25,000 244
Tomkins plc (DIOP) .......................... 70,000 380
United News & Media plc (MEDP) .............. 26,000 364
-------
9,402
United States - 0.2%
Brazil Fund, Inc. (FUND) .................... 860 16
Cifra SA de CV (RETS) ....................... 426 6
Credicorp, Ltd. (BANK) ...................... 396 6
Korea Fund, Inc.* (BANK) .................... 5,213 33
Mahanagar Telephone Nigam Ltd. (TELE) ....... 3,000 25
TV Azteca SA de CV* (MEDI) .................. 2,700 29
-------
115
Venezuela - 0.0%
Compania Anonima Nacional Telefonos de
Venezuela - ADR* (TELS) .................... 928 23
-------
TOTAL COMMON STOCK- 96.6% 47,490
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) .................... 11,148 79
Germany - 0.1%
Fresenius AG (HEAL) ........................ 290 55
-------
TOTAL PREFERRED STOCK- 0.3% 134
WARRANTS
Netherlands - 0.1%
ING Groep NV (BANK)
expires 3/15/01 (Cost $10) ................ 1,847 34
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.7%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ........................ $ 1,342 1,342
-------- -------
TOTAL INVESTMENTS- 99.6% 49,000
Cash and Receivables, less payables- 0.3% 169
-------- -------
NET ASSETS- 100.0% $49,169
======== =======
ADR-American Depository Receipt
* Non-income producing security.
See notes to financial statement.
102
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market %
Industry Industry Value Long-Term
Abbreviation (000's) Investments
Aerospace and Defense ......... AERO $ 46 0.1%
Shoe and Apparel
Manufacturing ................ APPA 234 0.5%
Household Appliances /
Furnishings .................. APPL 262 0.5%
Automobile .................... AUTO 155 0.3%
Banks ......................... BANK 7,939 16.7%
Chemicals ..................... CHEM 552 1.2%
Consumer - Miscellaneous ...... CNSU 781 1.6%
Commercial Services ........... COMM 1,049 2.2%
Computer Equipment ............ COMP 670 1.4%
Construction .................. CONS 915 1.9%
Diversified Operations ........ DIOP 2,808 5.9%
Electrical Equipment .......... ELEQ 259 0.5%
Engineering and Construction .. ENGI 273 0.6%
Electronic Products and
Services ..................... ETRN 2,604 5.5%
Financial Services ............ FINL 294 0.6%
Food, Beverage and Tobacco .... FOOD 3,783 7.9%
Brokerage and Investment
Management ................... FUND 261 0.5%
Health Care Products .......... HEAL 4,498 9.4%
Cosmetic and Personal Care .... HNBA 277 0.6%
Housing ....................... HOUS 186 0.4%
Insurance ..................... INSU 1,463 3.1%
Leisure and Recreation ........ LEIS 570 1.2%
Machinery ..................... MACH 1,445 3.0%
Media - TV / Radio ............ MEDI 857 1.8%
Media - Publishing ............ MEDP 2,435 5.1%
Metals and Mining ............. META 64 0.1%
Oil - Equipment and Services .. OILE 124 0.3%
Oils .......................... OILS 1,475 3.1%
Oil and Natural Gas Exploration
and Production ............... OILX 1,967 4.1%
Paper and Forest Products ..... PAPR 122 0.3%
Auto and Truck Parts .......... PART 51 0.1%
Real Estate Development ....... READ 66 0.1%
Real Estate Operations ........ REAL 246 0.5%
Retail - Food ................. RETF 1,250 2.6%
Retail - Department Stores .... RETS 2,281 4.8%
Computer Software and
Services ..................... SOFT 684 1.4%
Steel ......................... STEE 37 0.1%
Telecommunication Equipment ... TELE 1,939 4.1%
Telecommunications Services ... TELS 962 2.0%
Transportation Services ....... TRAN 194 0.4%
Electric Power ................ UTIE 654 1.4%
Natural Gas Distribution ...... UTIG 261 0.5%
Telephone ..................... UTIT 665 1.4%
------- -----
$47,658 100.0%
======= =====
103
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.6%
Aeroquip-Vickers, Inc. .................. 500 $ 29
Allied Signal, Inc. ..................... 10,500 466
B.F. Goodrich Co. ....................... 1,300 65
Boeing Co. .............................. 18,568 827
General Dynamics Corp. .................. 2,200 102
Lockheed Martin Corp. ................... 3,600 381
Northrop Grumman Corp. .................. 1,200 124
Raytheon Company - Class B .............. 6,100 361
United Technologies Corp. ............... 4,200 388
--------
2,743
Agricultural Operations - 0.5%
Monsanto Co. ............................ 10,900 609
Pioneer Hi-Bred International, Inc. ..... 4,400 182
--------
791
Auto and Truck Parts - 1.9%
AutoZone, Inc.* ......................... 2,700 86
Cooper Tire & Rubber Co. ................ 1,500 31
Cummins Engine Company, Inc. ............ 600 31
Dana Corp. .............................. 2,000 107
Echlin, Inc. ............................ 1,200 59
Ford Motor Co. .......................... 22,100 1,304
General Motors Corp. .................... 12,400 829
Genuine Parts Co. ....................... 3,150 109
Goodyear Tire & Rubber Co. .............. 2,800 180
ITT Industries, Inc. .................... 2,200 82
Johnson Controls, Inc. .................. 1,500 86
Navistar International* ................. 1,400 40
PACCAR, Inc. ............................ 1,400 73
Pep Boys - Manny, Moe & Jack ............ 1,000 19
TRW, Inc. ............................... 2,300 126
--------
3,162
Automobile - 0.4%
Chrysler Corp. .......................... 11,800 665
Banks - 8.8%
Banc One Corp. .......................... 12,830 716
Bank of New York Co., Inc. .............. 6,800 413
BankAmerica Corp. ....................... 12,600 1,089
BankBoston Corp. ........................ 5,400 300
Bankers Trust New York Corp. ............ 1,800 209
BB&T Corporation ........................ 2,500 169
Chase Manhattan Corp. ................... 15,600 1,178
Citicorp ................................ 8,300 1,239
Comerica, Inc. .......................... 2,800 186
Fifth Third Bancorp ..................... 4,650 293
First Chicago NBD Corp. ................. 5,200 461
First Union Corp. ....................... 17,646 1,028
Fleet Financial Group, Inc. ............. 5,200 434
Golden West Financial Corp. ............. 1,000 106
H.F. Ahmanson & Co. ..................... 2,100 149
Huntington Bancshares, Inc. ............. 3,500 117
J.P. Morgan & Co., Inc. ................. 3,300 387
KeyCorp ................................. 7,900 281
Mellon Bank Corp. ....................... 4,700 327
Mercantile Bancorporation ............... 2,400 121
National City Corp. ..................... 6,000 426
NationsBank Corp. ....................... 17,487 1,338
Northern Trust Corp. .................... 2,000 153
Norwest Corp. ........................... 13,700 512
PNC Bank Corp. .......................... 5,600 301
Republic New York Corp. ................. 2,000 126
State Street Corp. ...................... 3,000 208
Summit Bancorp .......................... 3,300 157
Suntrust Banks, Inc. .................... 3,800 309
Synovus Financial Corp. ................. 4,650 110
U.S. Bancorp ............................ 13,618 586
Wachovia Corp. .......................... 3,800 321
Washington Mutual, Inc. ................. 7,250 315
Wells Fargo & Co. ....................... 1,600 590
--------
14,655
Brokerage and Investment Management - 1.3%
Charles Schwab Corp. .................... 4,950 161
Franklin Resources, Inc. ................ 4,600 248
Lehman Brothers Holdings, Inc. ADR ...... 2,100 163
Merrill Lynch & Co., Inc. ............... 6,300 581
Morgan Stanley, Dean Witter,
Discover & Co. ......................... 10,950 1,001
--------
2,154
Business Services - 0.4%
Automatic Data Processing, Inc. ......... 5,500 401
Dun & Bradstreet Corp. .................. 3,300 119
H & R Block, Inc. ....................... 1,900 80
Harris Corp. ............................ 1,400 63
IKON Office Solutions, Inc. ............. 2,500 36
Moore Corp., Ltd. ....................... 1,700 23
--------
722
Chemicals - 1.8%
Air Products & Chemicals, Inc. .......... 4,200 168
Dow Chemical Co. ........................ 4,100 396
E.I. du Pont de Nemours & Co. ........... 20,600 1,537
Eastman Chemical Co. .................... 1,400 87
Engelhard Corp. ......................... 2,600 53
Great Lakes Chemical Corp. .............. 1,100 43
Hercules, Inc. .......................... 1,700 70
Morton International, Inc. .............. 2,400 60
Nalco Chemical Co. ...................... 1,200 42
Praxair, Inc. ........................... 2,800 131
Rohm & Haas Co. ......................... 1,100 114
Sigma-Aldrich Corp. ..................... 1,700 60
Union Carbide Corp. ..................... 2,500 134
W.R. Grace & Co. ........................ 1,100 19
--------
2,914
104
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Commercial Services - 0.7%
Cendant Corporation* ..................... 15,506 $ 324
Cognizant Corp. .......................... 2,900 183
Deluxe Corp. ............................. 1,400 50
Ecolab, Inc. ............................. 2,400 74
Equifax, Inc. ............................ 2,600 94
Interpublic Group Cos., Inc. ............. 2,550 155
Omnicom Group Inc. ....................... 3,200 160
R.R. Donnelley & Sons Co. ................ 2,700 123
--------
1,163
Computer Equipment - 5.1%
3Com Corp.* .............................. 6,600 203
Apple Computer, Inc.* .................... 2,300 66
Compaq Computer Corp.* ................... 30,311 860
Data General Corp.* ...................... 700 10
Dell Computer Corp.* ..................... 11,900 1,104
Gateway 2000, Inc.* ...................... 2,900 147
Hewlett-Packard Co. ...................... 19,000 1,138
IBM Corp. ................................ 17,200 1,975
Intel Corp. .............................. 31,100 2,305
Xerox Corp. .............................. 6,000 610
--------
8,418
Computer Software and Services - 4.7%
Adobe Systems, Inc. ...................... 1,200 51
Autodesk, Inc. ........................... 900 35
Cabletron Systems, Inc.* ................. 3,100 42
Ceridian Corp.* .......................... 1,400 82
Computer Associates International, Inc. .. 10,025 557
Computer Sciences Corp.* ................. 2,800 179
EMC Corp.* ............................... 9,100 408
First Data Corp. ......................... 8,200 273
Microsoft Corp. .......................... 45,000 4,877
Novell, Inc.* ............................ 6,100 78
Oracle Corp.* ............................ 17,650 433
Parametric Technology Co.* ............... 5,000 135
Seagate Technology, Inc.* ................ 4,400 105
Shared Medical Systems Corp. ............. 500 37
Silicon Graphics, Inc.* .................. 3,300 40
Sun Microsystems, Inc.* .................. 6,800 295
Unisys Corp.* ............................ 4,700 133
--------
7,760
Construction - 0.0%
Armstrong World Industries, Inc. ......... 700 47
Foster Wheeler Corp. ..................... 600 13
--------
60
Consumer - Miscellaneous - 1.4%
American Greetings Corp. - Cl. A ......... 1,300 66
Avery Dennison Corp. ..................... 2,200 118
Black & Decker Corp. ..................... 1,700 104
Briggs & Stratton Corp. .................. 500 19
Clorox Co. ............................... 1,900 181
Fortune Brands, Inc. ..................... 3,100 119
Honeywell, Inc. .......................... 2,300 192
Jostens, Inc. ............................ 600 14
Parker-Hannifin Corp. .................... 1,950 74
Rubbermaid, Inc. ......................... 2,700 90
Service Corp. International .............. 4,700 202
Sherwin-Williams Co. ..................... 3,200 106
Snap-On, Inc. ............................ 1,000 36
Stanley Works ............................ 1,600 67
Tupperware Corp. ......................... 1,100 31
Unilever NV - NY Shares* ................. 11,700 924
--------
2,343
Containers - 0.2%
Bemis Company, Inc. ...................... 900 37
Crown Cork & Seal Co., Inc. .............. 2,200 104
Owens-Illinois, Inc.* .................... 2,900 130
Sealed Air Corp. ADR ..................... 1,389 51
Stone Container Corp. .................... 1,600 25
--------
347
Cosmetics and Personal Care Products - 2.5%
Alberto-Culver Co. ....................... 900 26
Avon Products, Inc. ...................... 2,400 186
Colgate-Palmolive Co. .................... 5,400 475
Gillette Co. ............................. 20,500 1,162
International Flavors & Fragrances,
Inc ..................................... 1,900 83
Procter & Gamble Co. ..................... 24,500 2,231
--------
4,163
Diversified Operations - 5.1%
Cooper Industries, Inc. .................. 2,300 126
Corning, Inc. ............................ 4,100 142
Crane Co. ................................ 900 44
Dover Corp. .............................. 4,000 137
Eastern Enterprises ...................... 300 13
Eaton Corp. .............................. 1,300 101
General Electric Co. ..................... 59,500 5,415
Illinois Tool Works, Inc. ................ 4,500 300
Minnesota Mining & Manufacturing Co. ..... 7,400 608
National Service Industries, Inc. ........ 700 36
Pall Corp. ............................... 2,300 47
PPG Industries, Inc. ..................... 3,200 223
Raychem Corp. ............................ 1,500 44
Seagram Co., Ltd. ........................ 6,400 262
Tenneco, Inc. ............................ 3,100 118
Textron, Inc. ............................ 3,000 215
Tyco International, Ltd. ................. 10,600 668
--------
8,499
Electric Power - 2.3%
Ameren Corp. ............................. 2,500 99
American Electric Power Co. .............. 3,500 159
Baltimore Gas & Electric Co. ......... ... 2,800 87
105
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electric Power - Continued
Carolina Power & Light Co. ................ 2,800 $ 121
Central & South West Corp. ................ 3,900 105
Cinergy Corp. ............................. 2,900 102
Consolidated Edison, Inc. ADR ............. 4,200 194
Dominion Resources, Inc. .................. 3,700 151
DTE Energy Co. ............................ 2,700 109
Duke Energy Co. ........................... 6,644 394
Edison International ...................... 6,800 201
Entergy Corp. ............................. 4,600 132
Firstenergy Corp. ......................... 4,300 132
FPL Group, Inc. ........................... 3,300 208
GPU, Inc. ................................. 2,200 83
Houston Industries, Inc. .................. 5,424 168
Niagara Mohawk Power* ..................... 3,600 54
Northern States Power Co. ................. 2,600 74
PacifiCorp ................................ 5,500 124
Peco Energy Co. ........................... 3,900 114
PG & E Corp. .............................. 7,100 224
PP & L Resources, Inc. .................... 3,000 68
Public Services Enterprise Group, Inc...... 4,100 141
Southern Co. .............................. 12,900 357
Texas Utilities Co. ....................... 4,412 184
--------
3,785
Electrical Equipment - 0.4%
EG & G, Inc. .............................. 700 21
Emerson Electric Co. ...................... 8,100 489
Unicom Corp. .............................. 4,000 140
--------
650
Electronic Products and Services - 2.3%
Advanced Micro Devices, Inc.* ............. 2,400 41
AMP, Inc. ................................. 4,000 138
Applied Materials, Inc.* .................. 6,800 201
Ball Corp. ................................ 500 20
Cisco Systems, Inc.* ...................... 18,650 1,717
General Signal Corp. ...................... 900 32
KLA Instruments Corp.* .................... 1,500 42
LSI Logic Corp.* .......................... 2,400 55
Micron Technology, Inc.* .................. 3,800 94
Millipore Corp. ........................... 800 22
Motorola, Inc. ............................ 10,900 573
National Semiconductor Corp.* ............. 2,900 38
Pitney Bowes, Inc. ........................ 5,000 241
Polaroid Corp. ............................ 800 28
Rockwell International Corp.* ............. 3,700 178
Tektronix, Inc. ........................... 900 32
Texas Instruments, Inc. ................... 7,100 414
Thomas & Betts Corp. ...................... 900 44
--------
3,910
Engineering and Construction - 0.1%
Fluor Corp. ............................... 1,600 82
Financial Services - 0.9%
American Express Co. ...................... 8,400 958
Associates First Capital Corp. - Cl. A 6,353 488
Providian Financial Corp.* ................ 1,700 134
--------
1,580
Food, Beverage and Tobacco - 6.5%
Adolph Coors Co. - Cl. B .................. 600 20
Anheuser-Busch Cos., Inc. ................. 8,900 420
Archer-Daniels-Midland Co. ................ 10,556 205
Bestfoods ................................. 5,200 302
Brown-Forman Corp. ........................ 1,300 84
Campbell Soup Co. ......................... 8,300 441
Coca-Cola Co. ............................. 45,100 3,856
ConAgra, Inc. ............................. 8,800 279
General Mills, Inc. ....................... 2,900 198
Giant Food, Inc. .......................... 1,000 43
H.J. Heinz Co. ............................ 6,600 370
Hershey Foods Corp. ....................... 2,700 186
Kellogg Co. ............................... 7,600 286
PepsiCo, Inc. ............................. 27,300 1,124
Philip Morris Cos., Inc. .................. 44,600 1,756
Quaker Oats Co. ........................... 2,500 137
Ralston-Ralston Purina Group .............. 1,900 222
Sara Lee Corp. ............................ 8,500 475
SUPERVALU, Inc. ........................... 1,100 49
Sysco Corp. ............................... 6,000 154
UST, Inc. ................................. 3,400 92
Wm. Wrigley Jr. Co. ....................... 2,100 206
--------
10,905
Health Care Products - 11.1%
Abbott Laboratories ....................... 28,100 1,148
Allergan, Inc. ............................ 1,200 56
ALZA Corp.* ............................... 1,500 65
American Home Products Corp.* ............. 23,900 1,237
Amgen, Inc.* .............................. 4,800 314
Bausch & Lomb, Inc. ....................... 1,000 50
Baxter International, Inc. ................ 5,200 280
Becton, Dickinson & Co. ................... 2,200 171
Biomet, Inc. .............................. 1,900 63
Boston Scientific Corp.* .................. 3,600 258
Bristol-Myers Squibb Co. .................. 18,200 2,092
C.R. Bard, Inc. ........................... 1,000 38
Cardinal Health, Inc. ..................... 2,000 187
Eli Lilly & Co. ........................... 20,200 1,334
Guidant Corp. ............................. 2,700 192
HBO & Company ............................. 7,700 271
Johnson & Johnson ......................... 24,700 1,822
Mallinckrodt, Inc. ........................ 1,200 36
Medtronic, Inc. ............................ 8,500 542
Merck & Co., Inc. .......................... 21,900 2,929
Pfizer, Inc. ............................... 23,900 2,598
Pharmacia & Upjohn, Inc. ................... 9,400 433
Schering-Plough Corp. ...................... 13,400 1,228
106
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- -----------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
St. Jude Medical, Inc.* ................ 1,500 $ 55
U.S. Surgical Corp. .................... 1,400 64
Warner-Lambert Co. ..................... 15,000 1,041
--------
18,504
Health Care Services - 0.7%
Columbia/HCA Healthcare Corp. .......... 11,850 345
HEALTHSOUTH Corp.* ..................... 7,400 197
Humana, Inc.* .......................... 2,900 90
Manor Care, Inc. ....................... 1,300 50
Tenet Healthcare Corp. ................. 5,600 175
United Healthcare Corp. ................ 3,600 229
UNUM Corp. ............................. 2,500 139
--------
1,225
Household Appliances / Furnishings - 0.2%
Maytag Corp. ........................... 1,800 89
Newell Co. ............................. 3,000 149
Springs Industries, Inc. - Cl. A ....... 300 14
Whirlpool Corp. ........................ 1,400 96
--------
348
Housing - 0.2%
Centex Corp. ........................... 1,000 38
Fleetwood Enterprises .................. 700 28
Kaufman & Broad Home Corp. ............. 800 25
Masco Corp. ............................ 3,100 187
Owens Corning .......................... 1,000 41
Pulte Corp. ............................ 900 27
--------
346
Insurance - 4.8%
Aetna, Inc. ............................ 2,700 206
Allstate Corp. ......................... 7,700 705
American General Corp. ................. 4,621 329
American International Group, Inc. ..... 12,800 1,869
Aon Corp. .............................. 3,100 218
Chubb Corp. ............................ 3,100 249
Cigna Corp. ............................ 4,100 283
Cincinnati Financial Corporation ....... 3,100 119
Conseco, Inc. .......................... 3,500 164
General Re Corp. ....................... 1,400 355
Hartford Financial Services Group, Inc. 2,200 252
Jefferson-Pilot Corp. .................. 1,950 113
Lincoln National Corp. ................. 1,800 164
Loews Corp. ............................ 2,100 183
Marsh & McLennan Cos., Inc. ............ 4,800 290
MBIA, Inc. ............................. 1,800 135
MGIC Investment Corp. .................. 2,100 120
Perkin-Elmer Corp. ..................... 1,000 62
Progressive Corp. ...................... 1,300 183
Safeco Corp. ........................... 2,600 118
St. Paul Cos., Inc. .................... 4,314 181
SunAmerica, Inc. ....................... 3,500 201
Torchmark, Inc. ........................ 2,600 119
Transamerica Corp. ..................... 1,200 138
Travelers Group, Inc. .................. 20,952 1,270
--------
8,026
Leisure and Recreation - 1.5%
Brunswick Corp. ........................ 1,900 47
Eastman Kodak Co. ...................... 5,900 431
Harrah's Entertainment, Inc.* .......... 1,700 40
Hasbro, Inc. ........................... 2,450 96
Hilton Hotels Corp. .................... 4,400 125
Marriott International, Inc. - Cl. A
ADR ................................... 4,600 149
Mattel, Inc. ........................... 5,400 229
Mirage Resorts, Inc. ................... 3,200 68
The Walt Disney Co. .................... 12,500 1,313
--------
2,498
Machinery - 0.7%
Case Corp. ............................. 1,300 63
Caterpillar, Inc. ...................... 6,700 354
Cincinnati Milacron, Inc. .............. 700 17
Deere & Co. ............................ 4,500 238
FMC Corp.* ............................. 600 41
Harnischfeger Industries, Inc. ......... 800 23
Ingersoll-Rand Co. ..................... 3,000 132
McDermott International, Inc. .......... 1,000 34
NACCO Industries, Inc. - Cl. A ......... 200 26
Thermo Electron Corp.* ................. 2,900 99
W.W. Grainger, Inc. .................... 1,800 90
--------
1,117
Media - Publishing - 0.6%
Dow Jones & Co., Inc. .................. 1,700 95
Gannett Co., Inc. ...................... 5,200 369
Knight-Ridder, Inc. .................... 1,500 83
Meredith Corp. ......................... 900 42
New York Times Co. ..................... 1,700 135
Times Mirror Co. - Cl. A ............... 1,600 101
Tribune Co. ............................ 2,200 151
--------
976
Media - TV / Radio - 1.7%
CBS Corp.* ............................. 13,200 419
Clear Channel Communications, Inc.* .... 2,300 251
Comcast Corp. - Cl. A .................. 6,800 276
King World Productions, Inc.* .......... 1,300 33
McGraw-Hill Cos., Inc. ................. 1,800 147
Tele-Communications, Inc. - Cl. A* ..... 9,400 361
Time Warner, Inc. ...................... 10,800 923
Viacom, Inc.* .......................... 6,600 385
--------
2,795
Metal Product and Fabrication - 0.0%
Timken Co. . . . . . . . . . . . . . . 1,000 31
107
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Metal Product and Fabrication - Continued
Worthington Industries, Inc. ......... 1,800 $ 27
--------
58
Metals and Mining - 0.3%
Alcan Aluminium, Ltd. ................ 4,100 113
Aluminum Co. of America .............. 3,100 204
Asarco, Inc. ......................... 700 16
Cyprus Amax Minerals Co. ............. 1,400 19
Inco, Ltd. ........................... 2,900 40
Phelps Dodge Corp. ................... 1,000 57
Reynolds Metals Co. .................. 1,400 78
--------
527
Natural Gas Distribution - 0.5%
Columbia Energy Group, Inc. ADR ...... 1,500 84
Consolidated Natural Gas Co. ......... 1,700 100
Enron Corp. .......................... 6,000 324
NICOR, Inc. .......................... 800 32
Peoples Energy Corp. ................. 800 31
Sempra Energy* ....................... 2,256 63
Williams Cos., Inc. .................. 7,800 263
--------
897
Oil - Equipment and Services - 0.7%
Baker Hughes, Inc. ................... 3,200 110
Dresser Industries, Inc. ............. 3,200 141
Halliburton Co. ...................... 4,900 218
Schlumberger, Ltd. ................... 9,100 622
Western Atlas, Inc.* ................. 1,000 85
--------
1,176
Oil and Natural Gas Exploration and
Production - 6.6%
Amerada Hess Corp. ................... 1,700 92
Amoco Corp. .......................... 17,700 737
Anadarko Petroleum Corp. ............. 1,100 74
Apache Corp. ......................... 1,800 57
Ashland, Inc. ........................ 1,300 67
Atlantic Richfield Co. ............... 5,900 461
Burlington Resources, Inc. ........... 3,310 143
Chevron Corp. ........................ 11,900 988
Coastal Corp. ........................ 1,900 133
Exxon Corp. .......................... 44,700 3,188
Helmerich & Payne, Inc. .............. 800 18
Kerr-McGee Corp. ..................... 800 46
Mobil Corp. .......................... 14,400 1,103
Occidental Petroleum Corp. ........... 6,800 184
ONEOK, Inc. .......................... 600 24
Oryx Energy Co.* ..................... 1,900 42
Pennzoil Co. ......................... 800 41
Phillips Petroleum Co. ............... 4,700 226
Rowan Cos., Inc.* .................... 1,400 27
Royal Dutch Petroleum
Co. - NY Shares....................... 39,200 2,149
Sonat, Inc. .......................... 2,000 77
Sun Co., Inc. ........................ 1,700 66
Texaco, Inc. ......................... 10,000 597
Union Pacific Resources Group, Inc. .. 4,608 81
Unocal Corp. ......................... 4,400 157
USX-Marathon Group ................... 5,400 185
--------
10,963
Paper and Forest Products - 1.0%
Boise Cascade Corp. .................. 1,000 33
Champion International Corp. ......... 1,800 89
Fort James Corp. ..................... 4,100 182
Georgia Pacific Corp. ................ 1,600 94
International Paper Co. .............. 5,700 245
Kimberly-Clark Corp. ................. 10,200 468
Louisiana-Pacific Corp. .............. 2,000 36
Mead Corp. ........................... 2,000 63
Potlatch Corp. ....................... 500 21
Temple-Inland, Inc. .................. 1,000 54
Union Camp Corp. ..................... 1,200 60
Westvaco Corp. ....................... 1,800 51
Weyerhaeuser Co. ..................... 3,700 171
Willamette Industries, Inc. .......... 1,900 61
--------
1,628
Personal and Commercial Lending - 0.6%
Beneficial Corp. ..................... 1,000 153
Countrywide Credit Industries, Inc. .. 1,900 96
Green Tree Financial Corp. ........... 2,500 107
Household International, Inc. ........ 5,900 294
MBNA Corp. ........................... 9,250 305
--------
955
Pollution Control - 0.3%
Browning-Ferris Industries, Inc. ..... 3,400 118
Waste Management, Inc. ............... 8,700 305
--------
423
Precious Metals/Gems/Stones - 0.2%
Barrick Gold Corp. ................... 7,000 134
Battle Mountain Gold Co. ............. 3,400 20
Freeport-McMoRan Copper & Gold ....... 3,300 50
Homestake Mining Co. ................. 3,800 40
Newmont Mining Corp. ................. 2,801 66
Placer Dome, Inc. .................... 4,700 55
--------
365
Retail - Department Stores - 4.4%
Circuit City Stores, Inc. ............ 1,700 80
Consolidated Stores Corp. ............ 2,100 76
Costco Cos., Inc.* ................... 3,900 246
Dayton-Hudson Corp. .................. 8,000 388
Dillard's, Inc. ...................... 2,000 83
Federated Department Stores, Inc.* ... 3,800 204
Gap, Inc. ............................ 7,200 444
108
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - Department Stores - Continued
Harcourt General, Inc. ............... 1,300 $ 77
Home Depot, Inc. ..................... 13,400 1,113
J.C. Penney, Inc. .................... 4,600 333
Kmart Corp.* ......................... 8,900 171
Limited, Inc. ........................ 4,500 149
Lowe's Cos., Inc. .................... 6,400 260
May Department Stores Co. ............ 4,300 282
Mercantile Stores Co., Inc. .......... 600 47
Nordstrom, Inc. ...................... 1,400 108
Sears Roebuck & Co. .................. 7,100 433
Tandy Corp. .......................... 1,900 101
TJX Cos., Inc. ....................... 6,000 145
Toys "R" Us, Inc.* ................... 5,100 120
Venator Group, Inc.* ADR ............. 2,200 42
Wal-Mart Stores, Inc. ................ 41,200 2,503
--------
7,405
Retail - Drug Stores - 0.5%
CVS Corp. ADR ........................ 7,100 277
Longs Drug Stores, Inc. .............. 600 17
Rite Aid Corp. ....................... 4,800 180
Walgreen Co. ......................... 9,200 380
--------
854
Retail - Food - 1.1%
Albertson's, Inc. .................... 4,500 233
American Stores Co. .................. 5,000 121
Darden Restaurants, Inc. ............. 2,500 40
Kroger Co.* .......................... 4,700 202
McDonald's Corp. ..................... 12,500 862
The Great Atlantic & Pacific Tea
Company, Inc. ....................... 600 20
Tricon Global Restaurants, Inc.* ..... 2,650 84
Wendy's International, Inc. .......... 2,300 54
Winn-Dixie Stores, Inc. .............. 2,700 138
--------
1,754
Shoe and Apparel Manufacturing - 0.3%
Fruit of the Loom, Inc.* ............. 1,200 40
Liz Claiborne, Inc. .................. 1,200 63
Nike, Inc. ........................... 5,200 253
Reebok International, Ltd. ........... 1,100 30
Russell Corp. ........................ 500 15
V.F. Corp. ........................... 2,300 119
--------
520
Steel - 0.2%
Allegheny Teldyne, Inc. .............. 3,400 78
Armco, Inc.* ......................... 2,300 15
Bethleham Steel Corp.* ............... 2,000 25
Inland Steel Industries, Inc. ........ 900 25
Nucor Corp. .......................... 1,500 69
USX-US Steel Group, Inc. ............. 1,500 49
--------
261
Telecommunication Equipment - 2.0%
Andrew Corp.* ........................ 1,750 32
Ascend Communications, Inc. ADR ...... 3,600 178
Bay Networks, Inc.* .................. 3,900 126
DSC Communications Corp.* ............ 2,200 66
General Instrument Corp.* ADR ........ 2,600 71
Lucent Technologies, Inc. ............ 24,100 2,005
Northern Telecom, Ltd. ............... 9,500 539
Scientific-Atlanta, Inc. ............. 1,500 38
Tellabs, Inc.* ....................... 3,400 243
--------
3,298
Telecommunication Services - 0.8%
Airtouch Communications, Inc.* ....... 10,400 608
Frontier Corp. ....................... 3,200 101
MediaOne Group, Inc. ADR ............. 11,200 492
Nextel Communications, Inc.* ......... 4,800 119
--------
1,320
Telephone - 6.2%
Alltel Corp. ......................... 3,300 153
Ameritech Corp. ...................... 20,200 907
AT&T Corp. ........................... 29,600 1,691
Bell Atlantic Corp. .................. 28,636 1,307
BellSouth Corp. ...................... 18,100 1,215
GTE Corp. ............................ 17,600 979
MCI Communications Corp. ............. 13,200 767
SBC Communications, Inc. ............. 33,848 1,354
Sprint Corp. ......................... 7,900 557
U.S. West, Inc. ...................... 9,197 432
Worldcom, Inc. ....................... 18,900 915
--------
10,277
Transportation Services - 1.1%
AMR Corp.* ........................... 3,400 283
Burlington Northern Santa Fe ......... 2,900 285
CSX Corp. ............................ 4,100 187
Delta Air Lines, Inc. ................ 1,400 181
FDX Corp. ............................ 2,700 169
Laidlaw, Inc. ........................ 5,600 68
Norfolk Southern Corp. ............... 6,800 203
Ryder System, Inc. ................... 1,500 47
Southwest Airlines Co. ............... 4,000 118
U.S. Airways Group, Inc.* ............ 1,900 151
Union Pacific Corp. .................. 4,500 199
--------
1,891
U.S. Government Agencies - 1.0%
Federal Home Loan Mortgage Corp. ..... 12,500 588
Federal National Mortgage Assoc ...... 18,900 1,148
--------
1,736
--------
TOTAL COMMON STOCK- 98.2% 163,614
109
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
Brokerage and Investment Management - 2.1%
Aim Stic Prime Fund
5.63% due 07/01/98 ................. $1,815 $ 1,814
Prime Obligation Fund
5.5% due 07/01/98 ................... 1,703 1,703
--------
3,517
U.S. Government Agencies - 0.1%
United States Treasury Bills
4.94% due 09/17/98 ................. 200 198
--------
TOTAL SHORT-TERM INVESTMENTS- 2.2% 3,715
------ --------
TOTAL INVESTMENTS- 100.4% 167,329
Payables, less cash and receivables- (0.4)% (734)
------ --------
NET ASSETS- 100.0% $166,595
====== ========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statement.
110
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 2.0%
Argo-Tech Corp.
8.62% due 10/01/07 ........................ $ 100 $ 100
K&F Industries - Sr. Sub. Notes
9.25% due 10/15/07 ........................ 100 101
-------
201
Auto and Truck Parts - 4.8%
Accuride Corp. - Sr. Sub. Notes
9.25% due 02/01/08 ........................ 125 126
Collins & Aikman Products
11.50% due 04/15/06 ....................... 50 55
Hayes Lemmerz International, Inc.
9.12% due 07/15/07 ........................ 100 105
LDM Technologies, Inc.
10.75% due 01/15/07 ....................... 100 104
Numatics, Inc. - Sr. Sub. Notes
9.62% due 04/01/08 ........................ 100 101
-------
491
Chemicals - 2.0%
PCI Chemicals Canada, Inc.
9.25% due 10/15/07 ........................ 100 98
Sovereign Speciality Chemicals
9.50% due 08/01/07 ........................ 100 102
-------
200
Coal - 2.5%
P&L Coal Holdings Corp. - Sr. Sub Notes
9.62% due 05/15/08 ........................ 250 257
Commercial Services - 1.0%
Pierce Leahy Corp. - Sr. Sub. Notes
9.12% due 07/15/07 ........................ 100 103
Computer Software and Services - 4.6%
Advanced Micro Devices - Sr. Notes
11.00% due 08/01/03 ....................... 175 184
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07 ....................... 50 53
Psinet, Inc. - Sr. Notes
10.00% due 02/15/05 ....................... 125 127
Verio, Inc. - Sr. Notes
10.37% due 04/01/05 ....................... 100 103
-------
467
Construction - 1.0%
American Standard Cos., Inc.
7.37% due 02/01/08 ........................ 100 98
Consumer - Miscellaneous - 2.3%
CSC Holdings, Inc. - Debs
8.12% due 08/15/09 ........................ 50 53
Lin Holdings Corp. - Sr. Disc. Notes
1.00% due 03/01/08 ........................ 275 185
-------
239
Cosmetics and Personal Care Products - 1.9%
Revlon Worldwide - Sr. Disc. Notes
0.00% due 03/15/01 ........................ 250 194
Electrical Equipment - 1.0%
Wesco Distribution, Inc. - Sr. Sub. Notes
9.12% due 06/01/08 ........................ 100 99
Electronic Products and Services - 1.0%
Fairchild Semiconductor - Sr. Sub. Notes
10.12% due 03/15/07 ....................... 100 102
Financial Services - 2.5%
Olympic Financial, Ltd. - Sr. Notes
11.50% due 03/15/07 ....................... 125 125
Tembec Finance Corp. - Sr. Notes
9.87% due 09/30/05 ........................ 125 132
-------
257
Food, Beverage and Tobacco - 0.9%
Aurora Foods, Inc. - Sr. Sub. Notes
8.75% due 07/01/08 ........................ 30 30
Del Monte Foods Co. - Sr. Disc. Notes
1.00% due 12/15/07 ........................ 100 65
-------
95
Foreign - 1.0%
Satelites Mexicanos SA - Sr. Notes
10.12% due 11/01/04 ....................... 50 49
Health Care Products - 1.1%
Owens & Minor, Inc.
10.87% due 06/01/06 ....................... 100 108
Health Care Services - 1.7%
Tenet Healthcare Corp. - Sr. Sub Notes
8.12% due 12/01/08 ........................ 175 176
Housing - 5.2%
Engle Homes, Inc.
9.25% due 02/01/08 ........................ 125 123
Falcon Building Products, Inc.
9.50% due 06/15/07 ........................ 50 49
Grove Worldwide Llc - Sr. Sub. Notes
9.25% due 05/01/08 ........................ 40 40
Nortek, Inc. - Sr. Notes
9.12% due 09/01/07 ........................ 100 102
Standard Pacific Corp. - Sr. Notes
8.50% due 06/15/07 ........................ 210 213
-------
527
Insurance - 0.8%
E Spire Communications Insurance - Sr. Disc
Notes
1.00% due 04/01/06 ........................ 100 78
111
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Leisure and Recreation - 2.1%
Argosy Gaming Co.
13.25% due 06/01/04 ........................ $ 100 $ 113
Circus Circus Enterprises - Debs ............
7.00% due 11/15/36 ......................... 100 97
-------
210
Media - Publishing - 1.2%
Primedia, Inc. ..............................
0.00% due 01/01/80 ......................... 1 122
Media - TV / Radio - 6.9%
Century Communications - Sr. Disc. Notes
0.00% due 01/15/08 ......................... 225 102
Chancellor Media Corp. - Sr. Sub. Notes
8.12% due 12/15/07 ......................... 100 101
Frontiervision Holding L.P. - Sr. Disc. Notes
1.00% due 09/15/07 ......................... 100 79
Granite Broadcasting - Sr. Sub. Notes
8.87% due 05/15/08 ......................... 150 152
Iridium Operating LLC/Capital
10.87% due 07/15/05 ........................ 65 65
11.25% due 07/15/05 ........................ 125 125
Jacor Communications Co. - Sr. Sub. Notes
8.00% due 02/15/10 ......................... 75 76
-------
700
Metals and Mining - 1.1%
Johnstown America Industries - Sr. Sub. Notes
11.75% due 08/15/05 ........................ 100 111
Oil and Natural Gas Exploration and
Production - 11.2%
Abraxas Petro
11.50% due 11/01/04 ........................ 150 155
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06 ........................ 125 127
Cross Timbers Oil Co. - Sr. Sub. Notes
8.75% due 11/01/09 ......................... 200 200
Dailey International, Inc. ..................
9.50% due 02/15/08 ......................... 100 98
Great Lakes Carbon Corp. - Sr. Sub. Notes
10.25% due 05/15/08 ........................ 55 56
Petroleos Mexicanos
8.85% due 09/15/07 ......................... 175 170
Plains Resources, Inc. - Sr. Sub. Notes
10.25% due 03/15/06 ........................ 125 131
Tesoro Petroleum Corp. - Sr. Sub. Notes
9.00% due 07/01/08 ......................... 90 89
Texas Petrochemical Corp. - Sr. Sub. Notes
11.12% due 07/01/06 ........................ 100 109
-------
1,135
Paper and Forest Products - 4.9%
American Pad & Paper - Delaware - Sr. Sub. ..
Notes
13.00% due 11/15/05 ........................ 110 111
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04 ......................... 100 98
Grupo Industrial Durango - Notes
12.62% due 08/01/03 ........................ 100 107
Repap New Brunswick - Sr. Notes
9.00% due 06/01/04 ......................... 60 61
10.62% due 04/15/05 ........................ 125 126
-------
503
Retail - Drug Stores - 1.5%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08 ......................... 150 153
Steel - 4.5%
AK Steel Corp. - Sr. Notes
9.12% due 12/15/06 ......................... 150 157
Armco, Inc. - Sr. Notes
9.00% due 09/15/07 ......................... 100 98
Bayou Steel Corp. ...........................
9.50% due 05/15/08 ......................... 170 169
Weirton Steel Corp. - Sr. Notes 144A(a)
11.37% due 07/01/04 ........................ 35 37
-------
461
Telecommunication Services - 18.1%
BTI Telecom Corp. - Sr. Notes
10.50% due 09/15/07 ........................ 80 80
Echostar DBS Corp. ..........................
12.50% due 07/01/02 ........................ 125 139
Falcon Holding Group L.P. - Debs ............
8.37% due 04/15/10 ......................... 100 100
Fonda Group, Inc. - Sr. Sub. Notes
9.50% due 03/01/07 ......................... 125 121
GCI, Inc. - Sr. Notes
9.75% due 08/01/07 ......................... 215 226
Globalstar LP/Capital Corp. - Sr. Notes
10.75% due 11/01/04 ........................ 100 96
Innova State of DE R.L. - Sr. Notes
12.87% due 04/01/07 ........................ 100 101
Intermedia Communications, Inc. - Sr. Notes
8.60% due 06/01/08 ......................... 50 51
8.87% due 11/01/07 ......................... 200 205
IXC Communications, Inc. - Sr. Sub. Notes
9.00% due 04/15/08 ......................... 150 150
Level 3 Communications - Sr. Notes
9.12% due 05/01/08 ......................... 175 170
Mcleodusa, Inc. - Sr. Notes
8.37% due 03/15/08 ......................... 155 155
RSL Communications plc - Sr. Notes
9.12% due 03/01/08 ......................... 100 97
112
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Telecommunication Services - Continued
Telecommunications Tech Co. - Sr. Sub. Notes
9.75% due 05/15/08 ......................... $ 140 $ 142
-------
1,833
Telecommunications Equipment - 0.8%
L-3 Communications Corp. - Sr. Sub. Notes
8.50% due 05/15/08 ......................... 85 85
Telephone - 7.2%
ITC Deltacom, Inc. - Sr. Notes
8.87% due 03/01/08 ......................... 50 51
KMC Telecom Holdings, Inc.
1.00% due 02/15/08 ......................... 250 145
Nextel Communications - Sr. Disc. Notes
1.00% due 10/31/07 ......................... 395 257
Nextlink Communications - Sr. Disc. Notes
9.45% due 04/15/08 ......................... 150 92
Paging Network, Inc. - Sr. Sub. Notes
10.12% due 08/01/07 ........................ 75 78
Viatel, Inc.
11.25% due 04/15/08 ........................ 100 104
-------
727
Transportation Services - 0.7%
MTL, Inc. - Sr. Sub. Notes
10.00% due 06/15/06 ........................ 70 69
-------
TOTAL PUBLICLY-TRADED BONDS- 97.0% 9,849
SHORT-TERM INVESTMENTS - 2.1%
Investment in joint trading account (Note B)
5.88% due 07/01/98 ........................ 214 214
------- -------
TOTAL INVESTMENTS- 99.1% 10,063
Cash and Receivables, less payables- 0.9% 89
------- -------
NET ASSETS- 100.0% $10,152
======= =======
(a) Pursuant to Rule 144A under the Securities Act of 1933, these
securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 1998,
securities aggregated $37 or .4% of the net assets of the Portfolio.
See notes to financial statements.
113
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Auto and Truck Parts - 0.3%
Federal-Mogul Corp. - Notes (US)
7.75% due 07/01/06 ........................ $ 145 $ 145
Banks - 3.6%
Banco do Brasil - Debs. 144A(a) (BR)
9.00% due 08/05/98 ........................ 300 300
Export Import Bank Korea - Debs. 144A(a)
(US)
7.10% due 03/15/07 ........................ 170 155
First USA Secured Note Trust (US)
6.80% due 02/18/11 ........................ 600 610
KeyCorp - Sub. Notes (US)
6.75% due 03/15/06 ........................ 500 513
--------
1,578
Chemicals - 3.4%
Cytec Industries , Inc. - Notes (US)
6.84% due 05/11/05 ........................ 1,500 1,525
Computer Software and Services - 3.4%
Computer Associates International, Inc. -
Bonds (US)
6.25% due 04/15/03 ........................ 1,500 1,501
Electric Power - 0.8%
Southern California Edison Co. -
1st Ref. Mtge. Bonds (US)
7.12% due 07/15/25 ........................ 325 332
Financial Services - 20.9%
Countrywide Home Loans - Ser. 1997-4
Cl. A (US)
8.00% due 07/25/27 ........................ 523 537
Countrywide Home Loans - Ser. 1998-5
Cl. A (US)
6.75% due 05/25/28 ........................ 977 981
CS First Boston Mortgage Securities Corp. -
Ser. 1997-C1 Cl. A1B (US)
7.15% due 08/20/06 ........................ 700 734
Eaglemark Credit - Asset Bkd
Ser. 96-2A (US)
6.75% due 11/15/02 ........................ 192 194
First Union Lehman Brothers Mortgage
Trust (US)
6.65% due 06/18/08 ........................ 1,000 1,024
Green Tree Financial Corp. (US)
6.39% due 01/15/29 ........................ 1,000 1,009
Lb Commercial Conduit Mortgage Trust (US)
6.33% due 11/18/04 ........................ 977 987
Morgan Stanley Capital, Inc. (US)
6.30% due 11/15/07 ........................ 1,000 1,012
6.59% due 10/03/30 ........................ 982 1,005
Nationwide Financial Services, Inc. - Sr
Notes (US)
8.00% due 03/01/27 ........................ 500 530
Financial Services - Continued
Onyx Acceptance Grantor Trust - Ser. 1996-2
Cl. A (US)
6.40% due 10/15/01 ........................ 141 142
Toyota Auto Lease Trust (US)
6.35% due 04/26/04 ........................ 1,000 1,009
Washington Mutual Capital I (US)
8.37% due 06/01/27 ........................ 100 110
--------
9,274
Food, Beverage and Tobacco - 0.5%
Smithfield Foods, Inc. - Sr. Sub. Notes (US)
7.62% due 02/15/08 ........................ 200 202
Foreign Governmental - 35.0%
Federal Republic of Germany - Bonds (DE)
6.25% due 01/04/24 ........................ 1,030 644
8.00% due 07/22/02 ........................ 7,200 4,528
Finland Government - Bonds (FI)
7.25% due 04/18/06 ........................ 1,000 211
Government of Canada - Bonds (CA)
8.00% due 06/01/27 ........................ 280 258
Government of Canada - Debs. (CA)
9.00% due 06/01/25 ........................ 100 101
Government of France - Bonds (FR)
5.50% due 10/12/01 ........................ 18,000 3,087
5.50% due 04/25/07 ........................ 4,000 696
6.00% due 10/25/25 ........................ 3,500 629
6.50% due 10/25/06 ........................ 5,000 925
Government of Japan - Bonds (JP)
3.00% due 09/20/05 ........................ 105,000 844
5.50% due 03/20/02 ........................ 60,000 507
Government of Venezuela - Bonds (VE)
9.25% due 09/15/27 ........................ 70 54
Kingdom of Belgium - Debs. (BE)
7.75% due 12/22/00 ........................ 5,800 169
Province of Quebec - Debs. (CA)
6.50% due 01/17/06 ........................ 515 522
Republic of Argentina - Bonds (AR)
9.75% due 09/19/27 ........................ 150 139
Republic of Poland - Bonds (PL)
4.00% due 10/27/14 ........................ 150 135
Republic of Venezuala - Bonds (VE)
6.81% due 12/18/07 ........................ 226 186
Treuhandanstalt - Bonds (DE)
7.50% due 09/09/04 ........................ 550 352
U.K. Treasury - Bonds (GB)
7.50% due 12/07/06 ........................ 800 1,469
United Mexican States - Bonds (MX)
11.50% due 05/15/26 ....................... 25 28
--------
15,484
Government Agencies - 8.0%
Federal Gold Loan Mortgage Corp. (US)
8.00% due 02/01/27 . . . . . . . . . . . . 230 238
114
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1998
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Government Agencies - Continued
Federal Home Loan Mortgage Corp. (US)
6.50% due 02/15/19 ........................ $ 1,000 $ 998
Federal National Mortgage Assoc. (US)
7.00% due 02/01/27 ........................ 369 375
8.00% due 06/01/11 ........................
8.00% due 12/01/26 ........................ 376 389
Federal National Mortgage Assoc. - Ser
1998-5 Cl. A (US)
6.50% due 12/01/99 ........................ 70 70
Government National Mortgage Assoc. (US)
7.50% due 06/15/26 ........................ 22 23
7.50% due 07/20/26 ........................ 471 483
7.50% due 01/15/27 ........................ 74 76
7.50% due 06/15/28 ........................ 230 236
7.50% due 06/15/28 ........................ 641 659
-------
3,547
Health Care Services - 3.4%
Mckesson Corp. - Notes (US)
6.40% due 03/01/08 ........................ 1,500 1,498
Household Appliances / Furnishings - 0.5%
Westpoint Stevens, Inc. - Sr. Notes (US)
7.87% due 06/15/05 ........................ 205 207
Media-TV / Radio - 3.8%
Cable & Wireless Communication - Notes (US)
6.62% due 03/06/05 ........................ 1,500 1,527
Lenfest Communications - Sr. Notes (US)
7.62% due 02/15/08 ........................ 150 152
-------
1,679
Metal Product and Fabrication - 0.2%
Ryderson Tull, Inc. - Notes (US)
9.12% due 07/15/06 ........................ 100 110
Pollution Control - 0.2%
Allied Waste NA - Bonds (US)
10.25% due 12/01/06 ....................... 100 110
Retail-Department Stores - 0.7%
Fred Meyer, Inc. (US)
7.45% due 03/01/08 ........................ 300 301
Shoe and Apparel Manufacturing - 0.4%
Fruit of The Loom , Inc. - Notes (US)
6.50% due 11/15/03 ........................ 200 191
Telecommunication Services - 0.4%
TCI Communications, Inc. - Debs. (US)
7.87% due 02/15/26 ........................ 140 157
Telecommunications Equipment - 0.2%
Comtel Brasileira, Ltd. - Notes 144A(a) (US)
10.75% due 09/26/04 ....................... 100 92
Telephone - 0.2%
Philippine Long Distance Telephone Co. -
Debs. (US)
10.62% due 06/02/04 ....................... 100 102
U.S. Governmental - 11.1%
U.S. Treasury - Bonds (US)
6.75% due 08/15/26 ........................ 1,825 2,089
U.S. Treasury - Notes (US)
5.50% due 02/15/08 ........................ 1,320 1,319
6.87% due 05/15/06 ........................ 1,400 1,516
-------
4,924
-------
TOTAL PUBLICLY-TRADED BONDS- 97.0% 42,959
SHORT-TERM INVESTMENTS - 0.6%
Investment in joint trading account (Note B)
(US)
5.88% due 07/01/98 ....................... 276 276
-------- -------
TOTAL INVESTMENTS- 97.6% 43,235
Cash and Receivables, less payables- 2.4% 1,058
-------- -------
NET ASSETS- 100.0% $44,293
======== =======
(a) Pursuant to Rule 144A under the Securities Act of 1933, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 1998, securities aggregated
$547 or 1.23% of the net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market %
Country Country Value Long-Term
Abbreviation (000's) Investments
UNITED STATES ............... US $27,361 63.7%
GERMANY ..................... DE 5,524 12.9%
FRANCE ...................... FR 5,337 12.4%
UNITED KINGDOM .............. GB 1,469 3.4%
JAPAN ....................... JP 1,351 3.1%
CANADA ...................... CA 881 2.1%
BRAZIL ...................... BR 300 0.7%
FINLAND ..................... FI 211 0.5%
BELGIUM ..................... BE 169 0.4%
ARGENTINA ................... AR 139 0.3%
POLAND ...................... PL 135 0.3%
VENEZUELA ................... VE 54 0.1%
MEXICO ...................... MX 28 0.1%
------- -----
$42,959 100.0%
======= =====
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(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 twenty-three portfolios: Large Cap Growth, Sovereign
Bond, Emerging Markets Equity, International Equity Index, Global Equity, Small
Cap Growth, International Balanced, Mid Cap Growth, Large Cap Value, Money
Market, Mid Cap Value, Diversified Mid Cap Growth, Bond Index, Small/Mid Cap
CORE, Real Estate Equity, Growth & Income, Managed, Short-Term Bond, Small Cap
Value, International Opportunities, Equity Index, High Yield Bond and Strategic
Bond. The Fund may add or delete portfolios in the future to accommodate various
investment objectives. The Fund has issued shares of beneficial interest
exclusively to John Hancock Variable Life Account U ("JHVLAU"), John Hancock
Variable Life Account V ("JHVLAV"), John Hancock Variable Life Account S
("JHVLAS"), and John Hancock Variable Annuity Account I ("JHVAAI") to fund
policies and contracts issued by the John Hancock Variable Life Insurance
Company ("JHVLICO"), and to John Hancock Variable Annuity Account U ("JHVAAU"),
John Hancock Variable Annuity Account V ("JHVAAV"), and John Hancock Mutual
Variable Life Insurance Account UV ("JHMVLAUV") to fund contracts and policies
issued by John Hancock Mutual Life Insurance Company ("John Hancock").
NOTE B--ACCOUNTING POLICIES
Estimates: The preparation of the 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, Emerging Markets Equity,
Small Cap Growth, Mid Cap Growth, Large Cap Value, Mid Cap Value, Diversified
Mid Cap Growth, Small/Mid Cap CORE, Real Estate Equity, Growth & Income,
Managed, Small Cap Value, and Equity Index Portfolios: Common stocks and other
such securities traded on national 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, Bond Index, Managed, Short-Term Bond, High Yield Bond
and Strategic Bond Portfolios: Debt investment securities having a primary
market over-the-counter are valued on the basis of valuations furnished by a
pricing service which determines valuations for normal institutional size
trading units of debt securities, without exclusive reliance upon quoted prices.
For the Money Market Portfolio: The Board of Trustees has determined that the
appropriate method for valuing Portfolio securities is amortized cost, so long
as the average weighted maturity of money market instruments comprising the
Portfolio does not exceed 90 days. Accordingly, Portfolio securities are valued
at amortized cost which approximates market value. The amortized cost method
involves valuing a security at its cost on the date of purchase and thereafter
assuming a constant amortization to maturity of the difference between the
principal amount due at maturity and the cost of the security to the Portfolio.
For each of the Portfolios, short-term investments, with a maturity not to
exceed 60 days, are valued at amortized cost which approximates market value.
For the International Portfolios: Investments in securities traded on national
securities exchanges in the United States or on equivalent foreign exchanges are
normally valued at the last quoted sales price on such exchanges as of the close
of business on the date of which assets are valued. Securities traded in the
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.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
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 Equity Index, Global Equity, International Balanced, Mid Cap
Growth, Large Cap Value, Mid Cap Value, Diversified Mid Cap Growth, Growth &
Income, Managed, International Opportunities, Equity Index and Strategic Bond
Portfolios are shown net of foreign taxes withheld of $23, $344, $6, $29, $2,
$6, $1, $4, $132, $58, $68, $7, and $2, 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 Large Cap Growth, Sovereign Bond, Emerging
Markets Equity, International Equity Index, Mid Cap Value, Bond Index, Real
Estate Equity, Growth & Income, Managed, Short-Term Bond, Small Cap Value,
International Opportunities, High Yield Bond and Strategic Bond 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 $190,221 with maturity dates ranging from 2/15/99 through 3/31/01. The Fund's
custodian bank receives delivery of the underlying securities for the joint
repurchase agreement on the Fund's behalf. The Sub-Adviser is responsible for
ensuring that the agreement is fully collateralized at all times.
Joint Trading Account: Pursuant to an Exemptive Order issued by the Securities
and Exchange Commission, the order permits the existing Portfolios of the Fund
to pool daily uninvested cash balances, together with the balances of any future
Portfolios of the Fund, into a joint account for the purpose of investing the
cash balances in short-term repurchase agreements, commercial paper and other
short-term investments which in no event will have a maturity in excess of seven
days. Joint Account holdings as of June 30, 1998:
Par Market
Name of Issuer Value Value
-------------- -------- --------
Beneficial Corp.
5.72% due 07/01/98 .................................... $ 39,123 $ 39,123
Chrysler Financial Corp.
5.58% due 07/01/98 .................................... 40,000 40,000
Eaton Corp.
5.95% due 07/01/98 .................................... 30,000 30,000
Merrill Lynch & Co., Inc.
6.02% due 07/02/98 .................................... 26,626 26,622
Receivables Capital Corp.
5.71% due 07/02/98 .................................... 12,387 12,385
U.S. Prime Property Inc.
5.93% due 07/06/98 .................................... 28,053 28,030
-------- --------
Joint Trading Account Totals ....................... $176,189 $176,160
======== ========
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
Financial Futures Contracts: The Sovereign Bond, Diversified Mid Cap Growth,
Managed, Small/Mid Cap CORE, Short-Term Bond, Mid Cap Growth, Small Cap Growth,
Global Equity, Strategic Bond, International Balanced, International Equity
Index, Emerging Markets Equity and High Yield Bond 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 the Portfolio enters
into a financial futures contract, it will be required to deposit with its
custodian a specified amount of cash or U.S. government securities, known as
"initial margin." Each day, the futures contract is valued at the official
settlement price of the board of trade or U.S. commodities exchange. Daily
variation margin adjustments, arising from this "mark to market," are recorded
by the Portfolios as unrealized gains or losses.
When the contracts are closed, the Portfolio recognizes a gain or a loss. Risk
of entering into futures contracts include the possibility that there may
be an illiquid market 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 June 30, 1998, open positions in
financial futures contracts were as follows:
International Equity Index Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain/(Loss)
- --------- ----------- ---------- -------------
9 contracts
ETOP 100 Future Sept., 1998 $13,100 $ 73
12 contracts
Nikkei 225 Index Future Sept., 1998 5,648 38
------- ----
$18,748 $111
======= ====
Managed Portfolio
Face
Expiration Amount Unrealized
Sold Date at Value Gain/(Loss)
- ---- ----------- ---------- -------------
12 contracts
Long Gilt 10 Year Bond Future Sept., 1998 $2,178 $ (3)
Purchased
- ---------
80 contracts
French 10 Year Bond Future Sept., 1998 $6,917 $ 21
69 contracts
German 10 Year Bond Future Sept., 1998 10,365 26
------- ----
$19,460 $ 44
======= ====
Equity Index Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain/(Loss)
- --------- ---------- ---------- -------------
11 contracts
S&P 500 Index Future Dec., 1998 $3,177 $44
Forward Foreign Currency Contracts: The Fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage the
Portfolio's currency exposure. Contracts to buy generally are used to acquire
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--Continued
exposure to foreign currencies, while contracts to sell are used to hedge the
Portfolio's investments against currency fluctuations. Neither type of foreign
currency transaction will eliminate fluctuations in the prices of the
Portfolio's securities or prevent loss if the price of such securities should
decline. The U.S. dollar value of a forward foreign currency contract is
determined using forward exchange rates supplied by a quotation service.
Realized gain (loss) on the purchases and sales of forward foreign currency
contracts is recognized on settlement date.
Currency Translation: For Portfolios that trade in international securities:
all assets or liabilities initially expressed in terms of foreign currencies
are translated into U.S. dollars based on London currency exchange quotations as
of 5:00 p.m., London time, on the date of any determination of the net asset
value of the Fund. Unrealized exchange adjustments are included in unrealized
appreciation (depreciation) of investments. Transactions affecting statement of
operations accounts and net realized gain (loss) on investments are translated
at the rates prevailing at the dates of transactions.
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of forward foreign
currency contracts, disposition of foreign currencies, currency gains and losses
realized between trade and settlement dates of security transactions, and the
difference between the amounts of net investment income accrued and the U.S.
dollar amount actually received.
Dividends: A dividend of its net investment income will be declared and
distributed daily by the Money Market Portfolio. Dividends of net investment
income will be declared and distributed monthly by all 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 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 June 30, 1998, 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 Portfolio had $923 which expires in 2004 and $964 which
expires in 2005, Mid Cap Growth had $315 which expires in 2004 and $85 which
expires in 2005.
Expenses: Expenses directly attributable to a Portfolio are charged to that
Portfolio. Expenses not directly attributed to a Portfolio are allocated on the
basis of relative net assets.
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On February 18, 1998, 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 and Money Market Portfolios, 0.25%
on an annual basis of the net assets of each Portfolio;
For the Large Cap Growth and Managed Portfolios, 0.40% on an annual basis
of the first $500,000 of the net assets of each Portfolio; 0.35% for net
assets between $500,000 and $1,000,000; and 0.30% for that portion in excess
of $1,000,000.
For the Real Estate Equity Portfolio, 0.60% on an annual basis of the first
$300,000 of the Portfolio's net assets, 0.50% for the net assets between
$300,000 and $800,000; and 0.40% for net assets in excess of $800,000.
For the International Equity Index Portfolio, 0.18% on an annual basis of
the first $100,000 of the Portfolio's net assets; 0.15% for net assets between
$100,000 and $200,000; and 0.11% for net assets in excess of $200,000.
For the Diversified Mid Cap Growth 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.
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--Continued
For the Short-Term Bond Portfolio, 0.30% on an annual basis of its net
assets;
For the Large Cap Value and Small Cap Growth Portfolios, 0.75% on an annual
basis of the average daily net assets of each Portfolio;
For the Mid Cap Growth Portfolio, 0.85% on an annual basis of the first
$100,000 of the Portfolio's net assets; and 0.80% on an annual basis of the
portion in excess of $100,000;
For the Mid Cap Value Portfolio, 0.80% on an annual basis of the first
$250,000 of the Portfolio's net assets; 0.775% for net assets between $250,000
and $500,000; and 0.75% for net assets between $500,000 and $750,000, and
0.725% for net assets in excess of $750,000;
For the 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 Equity Index Portfolio, 0.15% on an annual basis of the first
$75,000 of the Portfolio's net assets; 0.14% for net assets between $75,000
and $125,000; and 0.13% for the net assets in excess of $125,000;
For the Small/Mid Cap CORE Portfolio, 0.80% on an annual basis of the first
$50,000 of the Portfolio's net assets; 0.70% for net assets in excess of
$50,000;
For the Global Equity Portfolio, 0.90% on an annual basis of the first
$50,000 of the Portfolio's net assets; 0.80% for net assets between $50,000
and $150,000; and 0.70% for net assets in excess of $150,000;
For the Emerging Markets Equity Portfolio, 1.30% on an annual basis of the
first $10,000 of the Portfolio's net assets; 1.20% for net assets between
$10,000 and $150,000; and 1.10% for net assets in excess of $150,000;
For the Bond Index Portfolio, 0.15% on an annual basis of the first
$100,000 of the Portfolio's net assets; 0.13% for net assets between $100,000
and $250,000; and 0.11% for net assets in excess of $250,000;
For the High Yield Bond Portfolio, 0.65% on an annual basis of the first
$100,000 of the Portfolio's net assets; 0.60% for net assets between $100,000
and $200,000; and 0.50% 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 voluntarily reimbursed and/or waived all investment advisory and
other fund expenses of the Equity Index Portfolio for the period ended June 30,
1998. The Investment Adviser expects to voluntary waive all investment advisory
and other fund expenses during the Trust's fiscal 1998 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.
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--Continued
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment Associates with respect to the Large Cap Growth, Growth & Income,
Managed, Real Estate Equity, and Short-Term Bond Portfolios; with John Hancock
Advisers Inc., with respect to the Sovereign Bond, Small Cap Growth, and
Diversified Mid Cap Growth Portfolios, each of whom is an affiliate of John
Hancock, and under the supervision of John Hancock, is responsible for the
day-to-day investment management of each of the Portfolios. John Hancock
maintains responsibility for the day-to-day management of the Money Market
Portfolio.
John Hancock has also entered into the Sub-Advisory Agreements with T. Rowe
Price Associates, Inc., with respect to the Large Cap Value Portfolio; with Rowe
Price-Fleming International, with respect to the International Opportunities
Portfolio; with Janus Capital Corporation, with respect to the Mid Cap Growth
Portfolio; with Neuberger & Berman Management, L.P., with respect to the Mid Cap
Value Portfolio; with INVESCO Management Research, with respect to the Small Cap
Value Portfolio; with J.P. Morgan Investment Management Inc., with respect to
the Strategic Bond Portfolio; with Brinson Partners, Inc., with respect to the
International Balanced Portfolio; with State Street Global Advisers with respect
to the Equity Index Portfolio; with Goldman Sachs Asset Management, with respect
to the Small/Mid Cap CORE Portfolio; with Scudder Kemper Investments, Inc.,
with respect to the Global Equity Portfolio; with Independence International
Associates, with respect to the International Equity Index Portfolio; with
Montgomery Asset Management, LLC, with respect to the Emerging Markets Equity
Portfolio; with Mellon Bond Associates, with respect to the Bond Index
Portfolio; and with Wellington Management Company, LLP, with respect to the High
Yield Bond 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 fees, taxes, interest, brokerage commissions and
extraordinary expenses, shall exceed 0.25% of each Portfolio's daily net asset
value, John Hancock JHVLICO will reimburse each Portfolio for such excess.
Accordingly, for the period ended June 30, 1998, the reimbursements paid from
John Hancock and JHVLICO were $35 to Emerging Markets Equity, $35 to Global
Equity, $17 to Small Cap Growth, $83 to International Balanced, $22 to Mid Cap
Growth, $15 to Bond Index, $27 to Small/Mid Cap CORE, $13 to Small Cap Value,
$86 to International Opportunities, $281 to Equity Index, $23 to High Yield Bond
and $22 to Strategic Bond Portfolios.
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE D--INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments excluding
short-term securities for each Portfolio for the period ended June 30, 1998 were
as follows:
Sales and
Purchases Maturities
---------- -----------
Large Cap Growth ................................... $ 305,131 $ 262,820
Sovereign Bond ..................................... 977,304 937,709
Emerging Markets Equity ............................ 10,315 571
International Equity Index ......................... 227,958 223,210
Global Equity ..................................... 15,407 596
Small Cap Growth ................................... 37,606 28,677
International Balanced ............................. 8,650 8,249
Mid Cap Growth ..................................... 47,482 34,472
Large Cap Value ................................... 33,519 7,995
Money Market ....................................... None None
Mid Cap Value ..................................... 75,456 40,810
Diversified Mid Cap Growth ......................... 188,427 194,905
Bond Index ......................................... 23,715 None
Small/Mid Cap CORE ................................. 5,262 116
Real Estate Equity ................................. 29,217 24,727
Growth & Income ................................... 1,109,574 977,712
Managed ........................................... 1,774,061 1,769,645
Short-Term Bond ................................... 90,517 77,262
Small Cap Value ................................... 46,824 25,843
International Opportunities ....................... 17,990 4,193
Equity Index ....................................... 71,092 24,447
High Yield Bond ................................... 10,274 334
Strategic Bond ..................................... 45,070 28,766
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(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 June 30, 1998 are
as follows:
Net Unrealized
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ -------------
Large Cap Growth ....... $ 689,927 $281,988 $ (7,630) $274,358
Sovereign Bond ......... 780,426 28,630 (3,087) 25,543
Emerging Markets
Equity ................. 9,676 114 (2,112) (1,998)
International Equity
Index................... 168,023 12,454 (7,221) 5,233
Global Equity ........... 14,820 594 (672) (78)
Small Cap Growth ....... 48,204 13,957 (1,697) 12,260
International Balanced .. 25,370 3,618 (1,808) 1,810
Mid Cap Growth ......... 49,167 11,366 (85) 11,281
Large Cap Value ......... 85,955 13,085 (2,366) 10,719
Mid Cap Value ........... 93,253 5,925 (7,673) (1,748)
Diversified Mid Cap
Growth ................. 191,104 29,016 (10,974) 18,042
Bond Index ............. 23,715 282 (17) 265
Small/Mid Cap CORE ..... 5,142 175 (312) (137)
Real Estate Equity ..... 161,849 29,960 (5,673) 24,287
Growth & Income ......... 2,429,399 938,064 (22,108) 915,956
Managed ................. 2,562,354 540,922 (12,654) 528,268
Short-Term Bond ......... 61,526 105 (131) (26)
Small Cap Value ......... 58,514 6,240 (3,312) 2,928
International
Opportunities........... 42,199 8,344 (2,885) 5,459
Equity Index ........... 136,640 32,957 (2,466) 30,491
High Yield Bond ......... 9,944 45 (140) (95)
Strategic Bond ......... 42,574 646 (261) 385
The aggregate cost of each Portfolio's Investments was substantially the same
for the book and federal income tax purposes as of June 30, 1998.
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS
As of June 30, 1998 the International Equity Index, Global Equity,
International Balanced, Managed and Strategic Bond Portfolios had open foreign
currency contracts which contractually obligate the Portfolio to deliver or
receive currencies at a specified date, as follows:
International Equity Index Portfolio
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- -------------------------------------- -------- ---- ----- ----------------
Deutsch Mark ................. $ 19 07/01/98 $ 10 $ 10 $ 0
---
Currency Purchased
- --------------------------------------
European Currency Unit ........ $771 09/18/98 $847 $849 $ 2
Japanese Yen .................. 43 09/10/98 299 311 12
---
14
---
$14
===
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--Continued
Global Equity Portfolio
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- -------------------------------------- -------- ---- ----- ----------------
French Franc ................. $200 07/31/98 $33 $33 $0
Pound Sterling ............... 20 07/01/98 34 34 0
Pound Sterling ............... 27 07/02/98 45 45 0
--
$0
==
International Balanced Portfolio
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ----------------------------------- -------- ------ ------ ----------------
Canadian Dollar ....... $ 800 09/30/98 $ 561 $ 544 $ 17
Deutsch Mark ........... 2,500 09/30/98 1,407 1,394 13
Danish Krone ........... 6,600 09/30/98 973 964 9
Finnish Markka ......... 900 09/30/98 167 165 2
Pound Sterling ......... 1,350 09/30/98 2,245 2,243 2
Hong Kong Dollar ....... 900 09/30/98 115 115 0
Netherlands Guilder ... 1,200 09/30/98 600 594 6
-----
49
Currency Purchased
- -----------------------------------
Austrian Schilling .... $ 2,500 09/30/98 $ 200 $ 198 $ (2)
Swiss Franc ............ 540 09/30/98 369 360 (9)
Spanish Peseta ........ 22,000 09/30/98 147 144 (3)
French Franc .......... 4,600 09/30/98 773 765 (8)
Hong Kong Dollar ...... 150 09/30/98 19 19 0
Italian Lira .......... 530,000 09/30/98 300 299 (1)
Japanese Yen .......... 430,000 09/30/98 3,346 3,151 (195)
-----
(218)
-----
$(169)
=====
124
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--Continued
Managed Portfolio
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ----------------------------------- -------- ------- ------- ---------------
Austrian Schilling . $ 17,386 08/05/98 $ 1,403 $ 1,378 $ 25
Australian Dollar ... 4,494 08/05/98 2,743 2,791 (48)
Belgian Franc ....... 311,943 08/05/98 8,475 8,405 70
Canadian Dollar ..... 16,932 08/05/98 11,647 11,515 132
Swiss Franc ......... 1,020 08/05/98 696 676 20
Swiss Franc ......... 24,554 08/06/98 16,650 16,275 375
Swiss Franc ......... 50,571 08/07/98 33,890 33,522 368
Deutsch Mark ....... 91,649 08/05/98 51,300 50,930 370
Deutsch Mark ....... 29,576 08/06/98 16,620 16,437 183
Deutsch Mark ....... 82,537 08/07/98 45,840 45,872 (32)
Danish Krone ....... 36,836 08/05/98 5,410 5,370 40
Spanish Peseta ..... 1,597,255 08/05/98 10,533 10,429 104
Finnish Markka ..... 4,769 08/05/98 889 872 17
French Franc ....... 248,271 08/05/98 41,499 41,155 344
Pound Sterling ..... 14,293 08/05/98 23,426 23,818 (392)
Pound Sterling ..... 14,930 08/07/98 24,260 24,877 (617)
Irish Pound ......... 365 08/05/98 518 510 8
Italian Lira......... 44,028,649 08/05/98 24,983 24,794 189
Japanese Yen ....... 8,826,508 08/05/98 63,961 64,177 (216)
Japanese Yen ....... 1,052,104 08/06/98 7,640 7,651 (11)
Japanese Yen ....... 7,461,372 08/07/98 53,480 54,266 (786)
Netherlands Guilder . 21,536 08/05/98 10,714 10,618 96
Swedish Krona ....... 42,686 08/05/98 5,458 5,359 99
------
338
Currency Purchased
- -----------------------------------
Austrian Schilling .. $ 17,386 08/05/98 $ 1,381 $ 1,378 $ (3)
Belgian Franc ........ 311,943 08/05/98 8,475 8,405 (70)
Swiss Franc .......... 1,020 08/05/98 684 676 (8)
Swiss Franc .......... 24,316 08/06/98 16,650 16,118 (532)
Swiss Franc .......... 16,188 08/07/98 10,970 10,731 (239)
Deutsche Mark ........ 29,410 08/06/98 16,620 16,345 (275)
Deutsche Mark ........ 40,888 08/07/98 22,920 22,724 (196)
Spanish Peseta ...... 1,597,255 08/05/98 10,539 10,429 (110)
Finnish Markka ...... 4,769 08/05/98 878 872 (6)
French Franc ........ 45,685 08/05/98 7,617 7,573 (44)
Pound Sterling ...... 157 08/05/98 258 261 3
Pound Sterling ...... 13,854 08/06/98 22,920 23,086 166
Pound Sterling ...... 14,802 08/07/98 24,260 24,663 403
Irish Pound .......... 365 08/05/98 512 510 (2)
Japanese Yen ........ 1,022,996 08/05/98 7,640 7,439 (201)
Japanese Yen ........ 4,175,925 08/07/98 30,560 30,371 (189)
Netherlands Guilder .. 371 08/05/98 184 183 (1)
Swedish Krona ........ 1,953 08/05/98 254 245 (9)
-------
(1,313)
-------
$ (975)
=======
125
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--Continued
Strategic Bond Portfolio
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ---------------------------------- -------- ------ ------ ----------------
Australian Dollar ..... $ 775 08/21/98 $ 490 $ 481 $ 9
Belgian Franc ......... 6,500 08/20/98 178 175 3
Deutsch Mark ......... 4,670 07/17/98 2,574 2,593 (19)
Deutsch Mark ......... 5,750 08/20/98 3,251 3,198 53
Spanish Peseta ....... 14,600 07/17/98 95 95 0
Finnish Markka ....... 1,100 08/20/98 202 202 0
French Franc ......... 33,080 07/17/98 5,555 5,477 78
Pound Sterling ....... 900 07/17/98 1,493 1,496 (3)
Japanese Yen ......... 321,600 08/20/98 2,253 2,344 (91)
----
30
Currency Purchased
- ----------------------------------
Australian Dollar ..... $ 1 08/21/98 $ 483 $ 481 $ (2)
Spanish Peseta ....... 15 07/17/98 97 95 (2)
Japanese Yen ......... 136 08/20/98 995 991 (4)
----
(8)
----
$ 22
====
126
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE F--OTHER MATTERS
The amendment of (S)270.30d-1 under the Securities and Exchange Act of 1940,
titled "Reports to Stockholders of Management Companies," requires regulated
investment companies to report on all subject matters put to a vote of the
shareholders and provide final results. In adherence to this amendment, John
Hancock Variable Series Trust I, solicited a vote at a special
Contractowner/Policyholders meeting on April 27, 1998 on the following matters:
For Against Abstain
--- ------- ---------
For the Managed Portfolio of the Trust:
1. To approve changes in certain
investment policies and
restrictions to allow it (a) to
invest up to 30% of its fixed
income assets in non-U.S. dollar
denominated securities; (b) to
purchase forward currency exchange
contracts, forward commitments or
securities and "when issued"
securities; and (c) to engage in
certain futures and options
transactions for non-hedging as
well as hedging purposes. The
resolution was adopted by, 85% 5% 10%
For the Special Opportunities Portfolio
of the Trust:
2. To approve a change in the
Portfolio's policies and
subclassification from a
"non-diversified" portfolio to a
"diversified" portfolio. The
resolution was adopted by, 88% 3% 9%
For the Short-term Bond Portfolio of
the Trust:
3. To rescind the investment policy
of investing primarily in U.S.
Government obligations with
maturities of less than 5 years,
and to change its investment
objective to allow it to invest in
intermediate-term investment-grade
debt obligations. The resolution
was adopted by, 87% 6% 7%
For the International Equity Index
Portfolio of the Trust:
4. To approve changes in the
investment objective and policies
and to approve an amended Investment
Management Agreement and new Sub-
Investment Management Agreement that
will permit the Portfolio to provide
investment results that correspond to
the major developed international
equity markets. The resolution was
adopted by, 89% 3% 8%
For the International Equity Index,
Diversified Mid-cap Growth, Managed, and
Short-term Bond Portfolios of the Trust:
5. To change the status of the
investment objectives and policies
to make them generally
non-fundamental. The resolution
was adopted by, 84% 5% 11%
127
<PAGE>
<TABLE>
<S> <C>
OFFICERS AND TRUSTEES INVESTMENT ADVISER
Henry D. Shaw, Chairman John Hancock Mutual Life Insurance Company
Thomas J. Lee, President and Vice Chairman John Hancock Place
Laura L. Mangan, Secretary P.O. Box 111
Raymond F. Skiba, Treasurer Boston, MA 02117
Sandra M. DaDalt, Assistant Secretary
Patrick F. Smith, Controller
Elizabeth Cook
William H. Dykstra
Joseph Kiebala, Jr.
Frank J. Zeo
</TABLE>
<TABLE>
<CAPTION>
SUB-INVESTMENT ADVISERS
<S> <C>
Independence Investment Associates, Inc. John Hancock Advisers, Inc.
One Liberty Square 101 Huntington Avenue
Boston, MA 02109 Boston, MA 02199
Brinson Partners, Inc. Neuberger&Berman, LLC
209 South La Salle Street 605 Third Avenue
Chicago, IL 60604-1295 New York, NY 10158-3698
Goldman Sachs Asset Management Rowe Price-Fleming International, Inc.
One New York Plaza 100 East Pratt Street
New York, NY 10004 Baltimore, MD 21202
INVESCO Management & Research Scudder Kemper Investments, Inc.
101 Federal Street 345 Park Avenue
Boston, MA 02110 New York, NY 10154-0010
J.P. Morgan Investment Management Inc. State Street Global Advisors
522 Fifth Avenue Two International Place
New York, NY 10036 Boston, MA 02110
Janus Capital Corporation T. Rowe Price Associates, Inc.
100 Fillmore Street 100 East Pratt Street
Denver, CO 80206-4923 Baltimore, MD 21202
Mellon Bond Associates Wellington Management Company, LLP
One Mellon Bank Center, Suite 4135 75 State Street
Pittsburgh, PA 15258-0001 Boston, MA 02109
Montgomery Asset Management, LLC
101 California Street
San Francisco, CA 94111
</TABLE>
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
<PAGE>
[John Hancock Olympic (Worldwide Sponsor) logo appears here]
The Variable Series Trust consists of 23 portfolios used to fund various John
Hancock variable life and variable annuity contracts. 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 in the Variable Series Trust.
NOT ALL OF THE PORTFOLIOS DESCRIBED IN THIS REPORT ARE AVAILABLE ON EVERY
PRODUCT. PLEASE REFER TO THE PROSPECTUS FOR ADDITIONAL INFORMATION ABOUT THE
INVESTMENT OPTIONS ON YOUR VARIABLE PRODUCT.
John Hancock Mutual Life Insurance Company
John Hancock Variable Life Insurance Company (not licensed in New York)
John Hancock Distributors, Inc., Member NASD
Boston, Massachusetts 02117
www.jhancock.com
