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[LOGO OF JOHN HANCOCK
APPEARS HERE]
December 31, 1998 [LOGO OF JOHN HANCOCK
ADVISERS APPEARS HERE]
Change. Opportunity. Stability. [LOGO OF INDEPENDENCE
INVESTMENT APPEARS HERE]
ANNUAL REPORT [LOGO OF BRINSON
PARTNERS APPEARS HERE]
[LOGO OF GOLDMAN SACHS
APPEARS HERE]
[PICTURE OF TREE APPEARS HERE] [LOGO OF INVESCO
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[LOGO OF JP MORGAN
APPEARS HERE]
[LOGO OF JANUS
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[LOGO OF MELLON BOND
APPEARS HERE]
[LOGO OF MONTGOMERY ASSET
MANAGEMENT APPEARS HERE]
[LOGO OF NEUBERGER BERMAN
APPEARS HERE]
[LOGO OF SCUDDER KEMPER
APPEARS HERE]
[LOGO OF STATE STREET
APPEARS HERE]
[LOGO OF T. ROWE PRICE
APPEARS HERE]
[LOGO OF WELLINGTON
Insurance for the unexpected. MANAGEMENT APPEARS HERE]
Investments for the opportunities.
[LOGO OF VARIABLE SERIES
TRUST APPEARS HERE]
[LOGO OF JOHN HANCOCK
APPEARS HERE]
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[PHOTO OF THOMAS J. LEE
APPEARS HERE]
Thomas J. Lee,
President and Vice Chairman
Dear Shareholder:
Change, opportunity, and stability -- three words with very different
meanings. And yet they work together to highlight the challenges that every
company faces in striving to provide exceptional value and earn the confidence
of customers.
John Hancock has a long tradition of adjusting to changing markets and creating
and renewing opportunities for our customers. Over the past few years, the
Variable Series Trust has experienced a dramatic transformation in the numbers
of investment options and investment managers available to shareholders. The VST
has grown from three John Hancock investment managers in 1995 to 15 of the
nation's leading money managers, including Independence Investment Associates,
Inc. and John Hancock Advisers, Inc. During the same period, the VST has
expanded from nine investment options to 23.
Why the changes? Because today's financial services consumer demands more than a
"one size fits all" approach. You want more choices and greater flexibility to
shape an investment strategy that's suited to your asset allocation requirements
as well as your investment personality.
Of course, these enhancements did not take place on their own. The VST has grown
to more than $10 billion through the dedication and stewardship of leaders like
Hank Shaw, the former Chairman of the Board. After 40 years with John Hancock,
Hank retired recently. We are sad to see him go, and we wish him all the best.
[PHOTO OF MICHELE G. VAN LEER
APPEARS HERE]
Michele G. Van Leer, Chairman
Since Hank's departure, the transition has been quite smooth. With a newly
elected Chairman in place, we are committed to continuing the style of
leadership and attention to detail that has propelled the VST's success over the
past several years. We look forward to serving as a catalyst for additional
changes that enhance the value of John Hancock's variable life and variable
annuity products. We will strive to maintain a broad range of outstanding
investment options within the VST. We will oversee a rigorous performance review
process to ensure that the VST's subadvisors apply appropriate risk controls.
And so, while the investment climate is ever changing, one thing remains
constant: John Hancock's commitment to delivering value through quality products
and responsive service.
Sincerely,
/s/ Michele G. Van Leer /s/ Thomas J. Lee
Michele G. Van Leer Thomas J. Lee
Chairman President and Vice Chairman
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Economic Overview: Annual Review 1998
John Hancock Economic Research
1998 was a tumultuous year in which the economy defied expectations and turned
in another stellar performance despite the drag from a sharply higher trade
deficit and financial market turmoil. Growth was clocked at more than 3.5%,
for the third straight year, a remarkable achievement given that the current
expansion is over seven years old. Once again, analysts are calling for slower
growth this year.
The financial crisis which struck Asia in 1997 made landfall in the US during
the first half of 1998, lopping almost 1.5% off Gross Domestic Product (GDP)
growth for the year. The damage came from a precipitous decline in exports,
especially to Asia, as exports fell 5%. Import volumes surged, but the dollar
value of import growth was far more modest because of the strength in the
dollar and deflation in traded goods prices. Import prices fell 6% and were
largely responsible for consumer prices rising only 1.6%.
As a consequence, US manufacturing was subject to intense competitive
pressure. Unable to raise prices, manufacturers cut costs by boosting
productivity more than 4% through expanding investment and slashing jobs.
In the second half of the year, Russia's default on its sovereign debt
instigated a sudden, sharp reassessment of risk by investors which sent risk
spreads soaring and set off a chain of events that led to the near liquidation
of a high profile hedge fund and gridlock in US capital markets. The stock
market fell by 20%, credit spreads on corporate debt exploded, and some
companies were unable to issue debt at any price for a short period last fall.
But, the Fed came to the rescue with three interest rate reductions, for a
total of 75 basis points, which restored confidence, and markets began to
recover. While the stock market had regained all its losses and more by the
end of the year, debt markets were slower to bounce back. Interest rates,
hovering around 5.75-6.0% in the first half of the year, sank to a record low
of 4.7% at the peak of the turmoil in October, before rebounding to around
5.2% at the end of the year.
The net effect on the economy was minor and growth actually accelerated
through the last two quarters of the year. Wall Street's problems proved too
transitory to spill over onto Main Street. When firms had trouble lining up
financing, banks jumped into the breach while others were able to wait until
markets revived.
Events in 1998 suggest that the strong growth experienced by the economy was
not well-balanced. Domestic oriented, interest sensitive, and consumption
based sectors in the economy prospered while manufacturing and internationally
related sectors suffered. Supported by strong income growth, low interest
rates, tightening labor markets, and a resilient stock market, consumption
spending growth of more than 4% and a strong housing market pulled the rest of
the economy along, as investment moderated somewhat during the year and the
trade deficit proved to be a significant drag.
However, a number of cracks in the economy's foundation could prove
troublesome in the future. Consumption has continued to roar ahead, but
increasingly at the expense of savings. By the end of the year, households
were spending more than their labor income, leading to a negative savings
rate. Investment remained healthy but began to sag from potential
overcapapcity, gyrations in the cost of capital, and declining corporate
profitability. As noted above, trade remained weak and is still vulnerable to
further setbacks overseas.
The economy seems to face two new risks this year. Corporate profitability
exhibited little growth in 1998 and is not expected to improve much this year,
which could undermine the stock market and the economy. A weaker stock market
could dent consumer spending and business investment, while firms could also
cut back production and jobs in response to poor profit prospects.
Another potential trouble spot for the economy is the international exchange
value of the dollar. The dollar began to decline towards the end of 1998 and
is likely to continue into 1999. If this weakness picks up steam and the
dollar falls substantially, we could see interest rates rise and inflation
start to pick up, neither of which would be good for the economy.
The economy started 1999 in fine mettle, but the risk that it comes unglued
this year seems larger. It has been blessed with luck and the positive effects
of a prolonged virtuous cycle. How long this can continue is anyone's guess.
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Inception: March 29, 1986
Money Market Portfolio
John Hancock Mutual Life Insurance Co. Peter Mitsopoulos
The U.S. economy turned in another solid year in spite of the turmoil roiling
Asia, Russia and Latin America. Real GDP for 1998 is estimated to be between
3.50% and 4.00%, similar to the growth registered in 1997, while the change in
the Consumer Price Index (inflation) was running at a 1.5% pace through
November, compared to 1.7% for 1997. In a dramatic reversal of monetary
policy, the Federal Reserve lowered the Fed Funds target rate three times
within a span of seven weeks in light of the global economic situation and
liquidity crunch. In total, the Fed cut 75 basis points off the Fed Funds
target rate bringing it to 4.75% from 5.50%. The Fed's actions worked
tremendously in restoring confidence to the battered financial markets.
Our strategy during the year reflected our position that the Fed was not
going to raise rates even though their policy bias during most of the year was
such. We had felt that the economy had not borne the full effects of the Asian
situation and as a result, we expected a modest decline in economic activity
negating the need for monetary tightening. We were investing with a neutral
strategy, acquiring some one-month and three-month adjustable rate securities
as well as investments further out on the short-term yield curve when
attractive. The difference in the short-term investment curves of 30 days out
to 90 days (a representative curve of money market investments) turned in an
average yield difference of incredibly only 1 basis point (1/100 of 1%) over
the entire year. It was a difficult market to extend the Portfolio's maturity
as a result.
The Portfolio was invested predominantly in commercial paper, representing
approximately three-quarters of the Portfolio with adjustable rate securities
making up another ten percent. The Portfolio is diversified among many
industry sectors and companies.
[CHART APPEARS HERE]
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Inception: May 1, 1994
Short-Term Bond Portfolio (formerly Short-Term U.S. Govt) Independence
Investment Associates, Inc. Tom Spicer
After experiencing the global fallout of economic shocks in Asia, Russia, and
Latin America, heightened concerns over political leadership worldwide, and a
20% correction in U.S. equity markets, bond investors expected the last
quarter of 1998 to be relatively calm. What followed, however, tossed the
fixed income markets yet again for the fourth quarter.
The corporate bond market began the fourth quarter with a very negative tone.
This significantly increased all spreads in the corporate market and resulted
in a complete lack of liquidity. Bond investors simply flocked to the safety
and security of U.S. Treasury debt. Thankfully, the Fed's surprise rate cut on
October 15th improved investor confidence in the capital markets. With spreads
now wider by 80 to 100 basis points since the end of June, investors re-
entered the corporate bond market and focused on large, liquid, high quality
companies in stable, defensive industries. While corporate bond issuance
surged to an all time monthly record, the sector also posted its largest
monthly outperformance over U.S. Treasuries ever recorded, ending the year on
a strong note.
The Short-Term Bond Portfolio began the quarter with a weighting in the
corporate sector neutral to that of its benchmark. As the sector regained its
momentum, the position was increased into an overweight with higher quality,
liquid issues being the main purchase candidates. However, the portion of the
Portfolio invested in lower-quality, less liquid issues had a rough time
during the downturn and had still not recovered fully by year-end. These
positions were the main contributor to the Portfolio's underperformance during
the quarter and for the year.
Over the past twelve months, the performance and behavior of the global
financial markets was fascinating. We have witnessed bull and bear markets,
currency devaluations, global political leadership instability, weaker
corporate earnings projections, and countries defaulting on their debt
obligations. Each of these unexpected events dramatically changed risk
premiums for fixed income investors. As we enter 1999, we would like to
believe that market volatility and bond risk premiums will decrease. While
these uncertainties still exist, however, we feel that maintaining a
relatively liquid, high quality, defensive portfolio is fully justified at
this time.
[CHART APPEARS HERE]
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Inception: May 1, 1998
Bond Index Portfolio Mellon Bond Associates Gregory Curran
The Portfolio continues to meet its investment objective: to match the
performance of the Lehman Brothers Government Corporate Index, which includes
only U.S. dollar-based, fixed coupon debt from the U.S. Treasury, U.S.
Agencies and investment-grade corporations. Performance net of fees for the
Portfolio was 0.16% for the past month, -0.34% for the past quarter and 10.96%
from inception. The corresponding returns for the benchmark are 0.24%, 0.13%
and 7.29%. The Portfolio uses a representative sample of issues selected
through proprietary quantitative techniques. 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 price sensitivity, industry, and
quality exposures. An indexed portfolio typically eliminates many risks
associated with active management and has lower fees and expenses.
December proved to be a relatively quiet finish to an eventful year. For much
of the year, fundamental factors took a back seat to international events. The
unpredictable nature of international events and investor reactions propelled
highly diversified and higher-quality portfolios to relatively stronger
performance. Treasury yields dropped dramatically as a result of global
financial stress and the related flights to quality and liquidity. By year-end
, the thirty-year U.S. Treasury issue was above, but near, 5%. However, the
"flights' did not carry over into the corporate sector. During the flight to
liquidity, corporate bond investors widened credit spreads dramatically.
The mood of the bond market changed in the fourth quarter. Spreads narrowed
late in the year when the use of Treasury issues as a "safe haven' subsided.
Spreads have not recovered completely, and liquidity has not returned to the
market from pre-flight levels. Such uncertainty in the markets increases the
risk associated with predicting yield movements or determining which sectors
will perform well. The highly diversified approach of "Indexation' should
serve investors well in 1999.
[CHART APPEARS HERE]
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Inception: March 29, 1986
Sovereign Bond PortfolioJohn Hancock Advisers, Inc. James Ho
1998 was an exceptionally challenging year in both the US and international
bond markets, despite the fact that interest rates in the US and virtually all
other Sovereign countries declined to historically low levels. The year could
also be characterized as one in which those strategies that focused on spread
product underperformed, while those positioning duration strategies,
particularly in the US Treasury market, dominated returns. Within the US
markets, corporate bond and mortgage backed yield spreads widened
significantly versus Treasury issues during much of the year, though the
fourth quarter, particularly the month of October, was the most vexing.
In the fourth quarter, against this backdrop, the Portfolio outperformed its
benchmark, the Lehman Brothers Government/Corporate Index, at 0.31% versus
0.13%, respectively. However, its year-to-date return of 8.23% lagged the
9.47% return posted for the Index. As the Index has a heavier allocation to US
Government and Agency issues, underperformance during a period in which
investors fled to the safety of US Treasuries was not surprising.
As the year drew to a close, we took the opportunity to capitalize on
compelling and historically wide spreads, representing levels not seen since
1990, and increased our position in corporate bonds. By year-end, the
Portfolio's US Treasury bond holdings were pared down to 22% from a high
allocation of 32% during August, with the expectation that as yield spreads
narrowed versus US Treasuries in 1999, the Portfolio would be handsomely
rewarded.
Currently, we believe that the Portfolio is not only well diversified, but
also well positioned to benefit from an improvement in investor sentiment, a
tightening in yield spreads and an increase in market liquidity during the
period ahead. Though we believe the market is still subject to near term
market risks, we remain optimistic in our overall view of the bond markets.
[CHART APPEARS HERE]
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Inception: May 1, 1996
Strategic Bond Portfolio Portfolio
J.P. Morgan Investment Management, Inc. Chris Durbin & Lili Dung
Early in 1998, it seemed the Asian financial situation was beginning to
settle as global bond markets rallied. However, the crisis continued to spread
in the second half of the year affecting markets world wide. The Russian
currency breakdown and forced liquidation of assets threatened the stability
of the global financial system, providing the catalyst for coordinated action.
Led by the prompt and successive easing moves by the U.S. Federal Reserve,
central banks, governments and supranational institutions around the world
collectively responded to the crisis, restoring investor confidence near the
end of the year.
Within the U.S. portion of the Portfolio, our decision to increase corporate
and mortgage backed securities during the year benefited performance. In
addition, our decision to maintain the Portfolio's long duration position also
contributed positively to performance. The Portfolio's allocation to U.S.
Treasuries in the third quarter enhanced returns as investors "fled to
quality' from the continued Asian contagion. As corporates and residential
mortgages performed particularly well toward the end of the year, we modestly
reduced the Portfolio's exposure to these sectors.
Within the foreign markets, our allocation to Continental Europe throughout
the year benefited the Portfolio's performance as the ongoing Asian financial
crisis prompted strong demand for high-quality sovereign bonds. In mid-year,
we decreased the Portfolio's combined allocation to domestic high yield and
emerging markets to 3% and maintained this allocation through year-end. During
1998, the high yield sector was one of the better performing sectors and
emerging markets bounced back late in the year.
The bond market outlook remains attractive in the U.S., although strong
consumer data, a firm labor market and rebounding stock market all suggest
further interest rate cuts might come later in 1999 than previously expected.
A similar picture is emerging in Europe, with rate cuts expected during 1999,
but against a less buoyant economic backdrop.
[DTP CHART APPEARS HERE]
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Inception: May 1, 1998
High-Yield Bond Portfolio
Wellington Management Company, LLP Crawford/Smith/McEvoy
The high yield market stabilized during the fourth quarter as the extreme
volatility that arose during the third quarter subsided. This was illustrated
by a return of +2.1% for the high yield market (Lehman Brothers High Yield
Index) which was well above the +0.3% return of the investment-grade market
(LB Aggregate Index). Fears of further emerging market turmoil and hedge fund
liquidations receded and helped improve liquidity. As of December 31, the
spread of the Lehman High Yield Bond index over the 10-year Treasury was 588
basis points compared to 604 basis points on September 30. High yield
essentially "earned its yield" during the quarter and spreads still remain
significantly wider than in early 1998.
As the market stabilized, the Portfolio's average quality and emerging market
exposure accounted for the Portfolio's outperformance versus the Lehman HY
Index during the fourth quarter. The average quality rating of the Portfolio
remained at B2 compared to B1 for the Lehman HY Index. During the quarter, the
lower quality "B" sector outperformed the "BB" sector, rewarding risk-taking
investors. Emerging market bonds bounced back in the fourth quarter to
outperform domestic high yield bonds. The JP Morgan Emerging Market Index
(EMBI+) returned +9.9% for the three months ended December 31, 1998. We used
weakness in the third quarter to add to select emerging markets issues but our
exposure still remains below 5%.
In the fourth quarter, we increased holdings in domestic-oriented companies,
which are less dependent on exports and should be less impacted by weakening
economies overseas. Holdings in three of these industries--cable,
media/entertainment, and telecommunications--total 42.3% of the Portfolio's
market value, versus 33.7% for the Lehman HY Index. Market weakness in the
second half of 1998 created an opportunity to buy higher quality issues that
had been hard to find or that were expensively valued. We have supplemented
these purchases with a handful of lower quality issues which had been
excessively punished in the market.
[CHART APPEARS HERE]
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Inception: March 29, 1986
Managed Portfolio Independence Investment Associates, Inc. John Forelli &
Tom Spicer
The Portfolio returned 14.77% for the fourth quarter and 20.42% for the year
compared to 14.70% for the INDATA median balanced Portfolio manager in 1998.
Our asset allocation decision to overweight equities after the third quarter
sell-off contributed significantly to fourth quarter performance.
The equity portion returned 23.77% compared to 21.28% for the S&P 500 in the
fourth quarter. For the year, this portion of the Portfolio returned a very
strong 28.82% compared to the 18.1% return of the median INDATA equity
manager. The big winners in your Portfolio included United Technologies, Home
Depot, MCI WorldCom and Tellabs.
The overall fixed income portion of the Portfolio returned a strong 8.70% in
1998. The US fixed income portion returned 8.18% for the year. Your bond
Portfolio had a 20% exposure to international bonds during the quarter. The
international bond exposure enhanced the performance of the fixed income
portion by 34 basis points during the quarter and 52 basis points for the
year. Over weighted currency positions in Deutsche marks, Swiss francs,
Japanese yen and British pounds had a significant positive performance impact.
The U.S. equity market rebounded strongly in the fourth quarter but fixed
income markets failed to rally. As a result, we would expect to move from an
over weighted equity position to market weighted asset allocation position
during the first quarter 1999. Within the US equity market, we are favoring
consumer cyclicals, technology and financials and under weighting basic
material and energy stocks. In fixed income, we expect interest rates to
decline and quality spreads to narrow. While we should expect continued
volatility in the capital markets, the long-term outlook of steady growth,
strong consumer spending and low inflation should continue to be positive for
the U.S. stock and global fixed income markets.
[CHART APPEARS HERE]
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Inception: March 29, 1986
Growth & Income Portfolio Independence Investment Associates, Inc. Paul F.
McManus
The stock market rebounded strongly from its third quarter lows as two
interest rate cuts by the Federal Reserve restored investor confidence in the
1999 economic outlook. The market advance was broad and your Portfolio
outperformed its benchmark for the fourth quarter and full year 1998.
The year was extremely volatile and there were vast divergences in
performance between styles, capitalization levels, and P/E groups. For
example, for the full year, "Growth" style far outperformed "Value" style.
High P/E stocks did better than low P/E stocks and large capitalization stocks
did better than small capitalization stocks. The environment, with the
divergences and volatility, was treacherous. Based on preliminary competitive
data, your account did much better than the average manager's.
Some strong areas in the market were the health care, telecommunications,
technology, and financial groups. In particular, our individual stock
selection was good in those areas. Stocks like Home Depot, MCI WorldCom,
HealthSouth, Compaq Computer, Northern Telecom, and Merck led in performance.
Some areas of the market that did not do well were the energy and electric
utility groups. Oil prices declined sharply in the fourth quarter due to
oversupply and continued weakness in Asia. Electric utilities, which did well
in the third quarter because of their defensive characteristics, did not do as
well in the strong fourth quarter environment.
So, now that the year is behind us, what lies ahead? Our economic forecast
calls for a slowing of the economy from the +3.8% level to 1.5-2.0% in 1999.
This means that first half earnings comparisons will be tough, but easier in
the second half. Inflation should remain low due to low oil prices and a
slowing of economic activity. Therefore, we do not expect interest rates to
move upward--they will likely stay in the range of 4.8%-5.6%. We expect that
the stock market will be continually reacting to the balance between earnings
growth and the level of interest rates. We believe Asia has bottomed. It will
not recover soon.
Within this environment, our strategy is the same. We will build portfolios
that consist of stocks that have attractive value and improving fundamental
trends. This strategy has served our clients well for 18 years and especially
well in a treacherous 1998 environment. We also will continue to manage risk--
no big sector bets, cash timing, and market-like volatility.
[CHART APPEARS HERE]
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Inception: May 1, 1996
Large Cap Value Portfolio T. Rowe Price Associates, Inc. Brian C. Rogers
Positive economic growth, a favorable interest rate environment, and
substantial stock market volatility characterized last year. A solid first
half was undermined by a severe third quarter correction, which gave way to a
near-euphoric rally in the final months. The S&P 500 Index advanced by more
than 20% for a record fourth consecutive year. However, within the context of
another strong year for equities, there were significant crosscurrents that
had a major impact on the performance of many sectors of the market.
For the year, the Portfolio return produced respectable but somewhat
disappointing results, since it was the first time in a while that performance
lagged the Morningstar peer group. During the broad market advances we have
seen in recent years, it is extremely difficult for portfolios with
conservative objectives like Large Cap Value to keep up with S&P 500 stocks.
In times such as these, it is helpful to keep in mind that the purpose of this
type of Portfolio is not to generate robust returns under all market
conditions. The goal is to produce attractive returns, including substantial
dividend income, over time and also to help cushion investment principal when
times get rough.
The Portfolio was 95% invested in equities at year-end. Three of our largest
sales during the past six months were stocks of companies that were in the
process of being merged or acquired. In each case, we were able to sell our
shares at prices higher than our original cost.
We made significant new investments in several companies, including Baker
Hughes, Boeing, and BankAmerica, all of which we bought at prices well below
their highs for the year. Many of our holdings typically trade at below-
average valuation levels because, for many diverse reasons, their share prices
declined before we took a position in them. This investment strategy, buying
out-of-favor stocks with good long-term potential, has served shareholders
well in the past, and we believe it will continue as a successful strategy in
the future when investors focus again on stocks with appealing market
valuations.
Among the Portfolio's largest holdings are companies from many diverse
industries, including SBC Communications, Mellon Bank, American Home Products,
Exxon, Anheuser-Busch, Dow Chemical, GE, and others that represent a broad
cross-section of the U.S. economy.
Twelve months ago, we commented on the rapid appreciation of stock prices
compared with the growth in the underlying earnings and dividends. In 1997,
share prices increased at a much faster rate than the underlying fundamentals,
and this "delinkage" between price and value grew even more pronounced in
1998.
We expect 1999 to be a more challenging year than the one that just ended. In
our view, this could lead to more moderate returns than the robust and
unsustainable performance of the past four years. In this environment, our
investment approach will be steady and constant, as always. We will continue
to search for attractively valued stocks with solid long-term potential.
[CHART APPEARS HERE]
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Inception: March 29, 1986
Large Cap Growth PortfolioIndependence Investment Associates, Inc. Mark
Lapman
The Large Cap Growth Portfolio returned a very strong 27.79% in the fourth
quarter. For the full year of 1998, the Portfolio returned 39.51%, well ahead
of the S&P 500 return of 28.57% and the INDATA median large cap growth manager
return of 19.0% for 1998.
The stock market turned in an extremely strong fourth quarter as interest
rate cuts in the U.S. and other countries buoyed investor confidence.
Technology and specialty retailer stocks led the fourth quarter rebound as
companies such as Lucent Technologies, Autodesk, Home Depot and Lowes
performed very well. We remain confident that we will outperform other growth
funds by owning growth stocks with better growth prospects at a less expensive
price.
The key factors driving stocks today is consumer and financial liquidity. We
believe consumer spending will remain strong as wage growth outpaces inflation
by a comfortable margin in 1999. Consumer confidence is still very high and
the federal budget has swung from a deficit to a surplus. The safety net for
the economy continues to be the Fed and its interest rate policy. In the event
that emerging market turmoil causes another financial crisis, the Fed can
still comfortably cut the Fed Funds rate as much as another 1.5% to
reinvigorate the economy.
We expect 1.5% U.S. GDP in 1999 and a rebound in corporate profit growth
beginning in the second half of 1999. Technology companies will be the major
source of the earnings rebound in 1999 which should bode well for large
capitalization growth stocks. Strong consumer spending will continue to
benefit well-positioned specialty retailers. While we should expect continued
volatility in the stock market, the long-term outlook of steady growth and low
inflation should continue to be positive for large capitalization growth
stocks.
[CHART APPEARS HERE]
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Inception: May 1, 1996
Equity Index Portfolio State Street Global Advisors Management Team
The Equity Index Portfolio had a tremendous fourth quarter in 1998. The fund
rose 21.27% during the quarter. This rebound reversed the losses suffered in
the third quarter and also contributed to the total year's return of 28.45%.
The Portfolio has returned just over 57% since May 1, 1997.
1998 is the fourth consecutive year in which the S&P 500. Index returned more
than 20%. The Index return was 37.58% in 1995, 22.96% in 1996, 33.36% in 1997,
and 28.58% in 1998. To put this in perspective, $1.00 invested in the S&P 500.
Index at the beginning of 1995 would now be worth $2.90.
The Equity Index Portfolio continued to grow during the year. At the
beginning of 1998 the Portfolio's total value was approximately $101 million.
At the end of 1998 the value was over $230 million. Much of that gain came
from new money into the Portfolio, while market returns contributed the
remainder.
The Equity Index Portfolio attempts to track the performance of The S&P 500.
Index 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.
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Inception: May 16, 1988
Real Estate Equity Portfolio Independence Investment Associates, Inc. Dalton
Avery
The commercial real estate markets achieved equilibrium during 1998. REIT
stocks were strong performers during the years of the real estate recovery but
equilibrium caused a number of investor concerns, which was reflected in the
disappointing performance of the REIT Group during the year. Concern about new
development and supply coincided with expectations of a downturn in the
overall economy. This, in turn, raised fears of another overbuilding period
that caused the real estate downturn in the early 1990's. While the REIT
stocks weakened many companies continued to issue additional shares. The
combination of the flight of momentum investors with new stock issuance
exacerbated the downturn in stock prices. A shift of investors from
growth/momentum owners to value/yield investors was not a smooth transition
and REIT share prices reflected this disconnect.
The outlook for 1999 is favorable now that return expectations for REITs have
moderated. The group started the year yielding 7%. Concerns about the overall
economy have abated so real estate fundamentals remain attractive. In
addition, the commercial mortgage crisis (CMBS) that occurred in mid 1998
reduced the supply of capital for real estate development. This reduced
capital availability has curtailed a number of new developments and tempered
the amount of new property supply coming to the market in 1999 and 2000. An
improved economic outlook will be favorable for tenant demand while the
reduced supply of new real estate combined with stock prices that reflect low
expectations should eventually attract new inflows of capital to REIT stocks.
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Inception: May 1, 1996
Mid Cap Value PortfolioNeuberger Berman, LLC M. Kassen & R. Gendelman
In 1998, growth outperformed value on every level of capitalization. In fact,
the capitalization effect and growth leadership produced the widest
disparities ever in returns between large, mid and small stocks, and between
growth and value stocks.
It is no wonder that under these conditions, 86% of Portfolio managers
underperformed the broad-based market. The Russell Mid Cap Value Index
underperformed the Russell Mid Cap Index by 5% (5.1% to 10.1%) while the
growth index showed an absolute return of 17.9%. The Neuberger Berman Mid Cap
Value Portfolio returned 12.2% for the quarter and -10.5% for the year (gross
of fees).
Similar to the S&P, the large cap companies in the Russell Mid Cap Value
Index (greater than $7.8 billion) contributed 128% of the Russell Mid Cap
Value's return for the year. These 65 securities represent 9% of the names in
the index and 30% of the market cap weight.
Your Portfolio's top performing sector for the quarter was Producer Durables
with an absolute return of 51.4% (the sector contributed 2.3%). For the year,
Health Care (51.3%) was the top-performing sector and the top contributor
(3.4%). Your Portfolio was aided in the fourth quarter by an increase in
Teradyne. The largest contributor for the year was Biogen.
Stocks, which lost value in the quarter included CompUSA and McDermott
International. Generally, the most damaging stocks for the year were companies
operating in cyclical industries.
In spite of the large capitalization and growth orientation of the markets in
1998, we will continue to adhere to our midcap value approach to investing
that has served our clients well over long periods of time. For 1999, we will
be slower to sell our better performing positions as long as fundamentals
remain intact. Secondly, we will not add or initiate new positions based
solely on inexpensive valuations. Lastly, we will be more disciplined in our
sell process.
[CHART APPEARS HERE]
14
<PAGE>
Inception: May 1, 1996
Mid Cap Growth PortfolioJanus Capital Corporation Jim Goff
Equity markets rebounded to reach new highs in the fourth quarter. Federal
Reserve interest rate cuts and a resilient economy helped stocks shake off
uncertainty over presidential impeachment, economic problems abroad, and
pressure on corporate earnings. In this environment, investors increasingly
focused on companies with visible earnings, regardless of size. Consequently,
most of our midcap stocks participated in the rally.
Turning to the Portfolio, we are pleased to report that we outpaced our
benchmark, the Russell Mid Cap Growth Index, reflecting strong gains by our
technology, media, and pharmaceutical positions. Among our technology
holdings, Vitesse Semiconductor soared on robust demand for its specialty
gallium arsenide semiconductors, a very high-speed, high-frequency chip used
in the growing voice and data communications market. In the media arena,
companies such as radio conglomerate Jacor Communications and billboard
company Outdoor Systems shook off recession fears to rebound solidly. In both
the radio and outdoor media sectors, consolidation continued to drive revenue
growth, making earnings less vulnerable to advertising budgets and the
economy.
In the pharmaceutical industry, our position in Sepracor was a standout. The
company reformulates and patents single-isomer versions of existing drugs in a
procedure that eliminates many of the drugs' negative side effects. Sepracor
has improved a number of compounds and recently signed an agreement with Eli
Lilly for Prozac. On the downside, we were disappointed with the performance
of Paychex, a payroll processing company, which declined on concerns over a
potential slowdown in employment growth.
Looking ahead, we believe that this market is playing directly to our
strengths of strong research and the ability to identify all-weather growth
companies. As many large capitalization companies see their profit margins
erode, the key will be to own those companies that can meet or exceed Wall
Street's estimates. In this environment, we believe small and midcap companies
continue to offer significant opportunities.
[CHART APPEARS HERE]
15
<PAGE>
Inception: May 1, 1994
Diversified Mid Cap Growth Portfolio (formerly Special Opportunities) John
Hancock Advisers, Inc. Barbara Friedman
For 1998, the Diversified Mid Cap Growth Portfolio returned 5.61%,
underperforming the Russell Mid Cap Index return of 17.86%. Several factors
accounted for this underperformance. First, we significantly repositioned the
Portfolio during the first half of 1998 bringing it into a truer midcap format
and away from the combination of small and large cap stocks that previously
dominated the Portfolio. During this period, the Portfolio's performance
matched the Russell Mid Cap Index, but did not match its peers outperformance.
We also included holdings of REITs and gas distribution stocks which performed
well in 1997, but failed to do so in 1998.
Secondly, during the repositioning, we were slow to take a position in
technology stocks which were the major contributors to the year's performance.
We addressed this issue during the fall, taking the technology sector from a
market to an overweight position. For 1998, 8 of the top 10 performers were
technology stocks, including EMC Corp, Lexmark, and Compuware.
Most importantly, we focused too narrowly within the smaller portion of the
midcap universe to ensure the Portfolio stayed within its midcap mandate. For
most of this year, some 50% of the Russell Mid Cap Index weighting has been
outside and above the top end of the Portfolio's market cap limit. This 50%
weighting produced over 86% of 1998 return of the index. Beginning in mid
December, we more carefully and aggressively invested the 28% or so of the
Portfolio's available assets in these larger cap names in the Russell midcap
universe.
1998 was truly a year of transition--if not, 1 1/2 transitions. However, as
we enter 1999, the Portfolio has strong characteristics with projected
earnings growth some 50% better than that of its large cap counterparts and
selling at a modest discount to the large cap market. These domestically
oriented companies should not be fundamentally hurt by financial crises
outside the US and should continue to benefit from a growing US economy where
both inflation and interest rates remain low.
[CHART APPEARS HERE]
16
<PAGE>
Inception: May 1, 1998
Small/Mid Cap CORE Portfolio
Goldman Sachs Asset Management Jones/Clark/Pinter
For the quarter ended December 31, 1998, the John Hancock VST Small/Mid Cap
CORE Portfolio ("Portfolio") returned 15.94% at NAV, underperforming its
benchmark, the Russell 2500 Index ("Index"), which returned 17.40%. Since
inception (May 1, 1998), the Portfolio returned -9.81% at NAV, slightly
underperforming the Index, which returned -9.30%. The primary reasons for the
Portfolio's underperformance stem from its smaller market capitalization bias,
its value-oriented methodology and stock selection.
Small capitalization stocks rallied during the fourth quarter, as the credit
crunch in capital markets and concerns about global financial conditions were
eased, in part, by the Federal Reserve Board's successive rate cuts. However,
the impressive fourth quarter Index return of 17.4% was overshadowed by the
S&P 500 Index return of 21.3%, as investors continued to favor the quality and
perceived safety of blue-chip, large capitalization companies. Investors also
continued to prefer growth versus value investing; the Russell 2500 Growth
Index return of 25.4%, significantly outperforming the Russell 2500 Value
Index for the quarter, which appreciated only 11.2%.
On a sector basis, our positions in healthcare, technology, consumer
services, commercial services, telecommunications and transports positively
impacted performance during the quarter. The energy sector, however, detracted
from performance, partly due to increased uncertainty from weakening oil
prices and industry consolidation.
We seek to add value through individual stock selection while sector
weightings and distribution among size categories continue to approximate
those of the Index. We prefer stocks with attractive valuations, lower-than-
average risk, good momentum and favorable analyst opinions. Over the long-
term, these factors have led to excess returns, although they often may not
simultaneously work well. During the fourth quarter, the strongest performers
were stocks with high valuations and higher-than-average risk. As these
characteristics are contrary to our investment style, the Portfolio's
performance was negatively impacted.
We anticipate that 1999 will predominantly be a year of transition, with
growth slowing as the year progresses and interest rates dropping after the
first half of the year. Despite possible continued volatility in the U.S.
equity markets throughout 1999, we believe that through our combined
qualitative and quantitative stock selection strategy and our disciplined,
long-term approach, the Portfolio has the potential to generate solid long-
term returns.
17
<PAGE>
Inception: May 1, 1996
Small Cap Value Portfolio INVESCO Management & Research Bob Slotpole
The equity market roared back with the best quarterly return for the Standard
& Poor's 500 since 1975. The Russell 2000 Index returned 16.3%, but still
finished in negative territory for the year. Technology stocks were the biggest
winners, as companies with ".com' in their names reached the ozone layer. This
sector is likely to remain unusually volatile until investors can put some
bounds around the growth potential of commerce on the web. Contrasted with this
euphoria are the hard times that have befallen commodity producers. Problems
are particularly evident in energy, where a combination of warm weather and
collapsing Third World demand have driven prices to lows not seen since the mid
1980's.
The Small Cap Value Portfolio returned 14.2% for the quarter and -5.96% for
the year, versus 16.3% and -2.55% for the Russell 2000. The shortfall was
largely due to the Portfolio's value bias; the degree to which growth stocks
outperformed value in 1998 was unprecedented. While the Russell 2000 Value
Index fell -6.5%, the Russell 2000 Growth Index was up 1.2%--the widest
dispersion between the two in their 22 year history. Although our stock
selection tools that focus on valuation have hurt recent results versus the
broader index, over time these factors have proven to be valuable contributors
to excess return.
Despite recent weakness, small cap stocks can offer significant benefits to
long-term investors. Historically they have provided excess returns of 3%
annually over large cap stocks for 5 year holding periods and they contribute
to overall portfolio diversification. Currently, the Russell 2000 is trading at
a discount to the S&P 500 on a forward earnings basis and relative measures of
price/book and price/earnings have reached new lows. Such compelling valuation,
combined with lower interest rates, presents a very favorable climate for small
cap stocks.
[CHART APPEARS HERE]
18
<PAGE>
Inception: May 1, 1996
Small Cap Growth Portfolio John Hancock Advisers, Inc. Bernice Behar
1998 was an outstanding year for the Small Cap Growth Portfolio. Despite the
market bias toward large cap stocks, the Portfolio gained 14.5%. This
performance exceeded the 1.2% return of the Russell 2000 Growth Index by a
wide margin. Holdings in the Technology and consumer related sectors had the
largest impact on performance.
We emphasized consumer stocks during the year for several reasons. Low levels
of unemployment, inflation, and interest rates and high consumer confidence
created an ideal environment. We purchased several companies in the retail
industry and were particularly successful in the specialty retail segment
(Linens 'N Things, Abercrombie & Fitch). Other consumer holdings included
business services companies that performed well due to an increase in
outsourcing and food and drug stores that were undergoing consolidation
through most of the year (Genovese, Duane Reade).
The Technology sector was the strongest contributor to performance. During
the year we made strategic shifts within the overweighted sector based on
underlying fundamentals and current market conditions. These decisions
significantly added to performance. In the first half of the year, the Asian
crises created uncertainty in the market. We correctly concluded that
companies with higher earnings visibility would perform well. We focused the
Portfolio on software and services stocks, whose earnings are more consistent,
and avoided the more cyclical semiconductor related stocks. After the market
decline in July, we added higher quality semiconductor names. We felt their
current stock prices reflected most of the negative sentiment. These stocks
rallied sharply in the fourth quarter boosting performance. Finally, we took
profits in some of our software and services holdings and purchased several
Internet stocks. These stocks were trading at cheaper valuations after severe
declines during the third and early fourth quarters. The market rewarded these
stocks in the fourth quarter causing their stock prices to soar.
19
<PAGE>
Inception: May 1, 1998
Global Equity Portfolio
Scudder Kemper Investments, Inc. W. Holzer & D. Espinosa
Equity markets staged an astonishing recovery in the fourth quarter, in many
cases surpassing their previous highs for the year as fears of the end of the
bull market appeared to have been forgotten. For the quarter, the VST Global
Equity Portfolio underperformed the MSCI World Index (US$) by 7%. Since the
Portfolio's inception on May 1, 1998, the Portfolio returned -0.55%
underperforming the benchmark, which returned 7.99%.
Late in the quarter, Europe took up the running, coordinating a larger-than-
expected cut in interest rates. In contrast to the financial markets
motivation of the US rate cut, the European action was designed to stimulate
slowing European GDP growth.
However, credit market pressures have not dissipated. Although the $41bn IMF
package for Brazil did much to allay investors' fears in the short-term, bond
market spreads over US Treasuries rose rapidly again at the end of December,
as the Brazilian government failed to pass an important part of their fiscal
reform package. Doubts remain over systemic risk akin to the "Russian" crisis
in the third quarter.
Some of the fundamental drivers underlying our investment themes are
changing. While restructuring still has considerable potential outside the US,
deflationary risks are becoming more evident. The furious pace of the recent
merger and acquisition activity is inspired by cost cutting and the
elimination of capacity, and, as a defense against deflation, will not yield
the same benefits as earlier restructuring.
The real risks that we perceive in both the global economy and individual
financial markets have led us to maintain a flexible stance in the Portfolio.
Investment performance has not kept pace with our benchmark index during the
quarter, although it has achieved our anticipated returns.
In our search for new themes, we are seeking to understand the wider
implications of the latticework of structural imbalances that today
characterize the global economy. In the meantime, the Portfolio will remain
positioned for change.
20
<PAGE>
Inception: May 1, 1996
International Balanced Portfolio Brinson Partners, Inc. Management Team
The International Balanced Portfolio provided 19.09% return (gross of fees)
for the year, which slightly beat the portfolio's benchmark return of 19.04%.
The portfolio's underweight of Japanese bonds was the most significant positive
contributor to results for the year, primarily due to that market's fourth
quarter performance. Overall Portfolio results were hampered by the underweight
of non-U.S. equities in favor of non-U.S. bonds for the year.
For the fourth quarter, non-U.S. equity markets returned 16.9%, and thus
recouped much of the decline experienced in the third quarter. For the full
year, non-U.S. markets provided 13.8% (in dollar-hedged terms). With the upturn
in the equity markets through the fourth quarter, the majority of individual
European markets ended the year with double-digit returns (in dollar-hedged
terms). Non-U.S. bond markets provided a lackluster 0.6% return (in dollar
hedged terms) for the quarter, with returns ranging from 4.3% and 4.0% in
Sweden and the U.K., respectively, to a low of -5.0% in Japan. Nevertheless,
the one-year returns from non-U.S. bond markets reached a robust 11.5% (in
dollar-hedged terms).
In the International Balanced Portfolio, we continue to emphasize the non-U.S.
bond markets relative to non-U.S. equity markets. Global equity investors
continue to be confronted with an overextended equity market that pays little
attention to declining profit expectations. We remain very underweight in
Japan, Hong Kong and Singapore. Among non-U.S. bond markets, we have no
exposure to Japan and have maintained overweight positions in Australia,
Denmark, Spain and the U.K. The Portfolio's currency strategies at the end of
the fourth quarter remained neutral. The only notable hedging strategies were
underweights in the Japanese yen and the British pound sterling, and a smaller
underweight of the Hong Kong dollar. Offsetting these positions were
overweights in the Australian and, to a lesser degree, the New Zealand dollar.
[CHART APPEARS HERE]
21
<PAGE>
Inception: May 2, 1988
International Equity Index Portfolio (formerly International Equity)
Independence International Associates Inc. Norman Meltz
The International Equity Index Portfolio returned 20.93% (gross) in the
fourth quarter versus the GDP Index return of 21.56%. Since inception of the
indexing strategy on May 1st of this year, the Portfolio's gross return of
5.43% trails the GDP Index return of 6.40%. Excluding May, when we began
managing the Portfolio and restructured the entire Portfolio, the Portfolio's
gross return of 4.72% trails the GDP Index return of 4.91% by 19 basis points.
Most of the fourth quarter's performance shortfall came from two sources.
First, during October, when the Fund under-performed the index by 36 basis
points, a steady steam of redemptions caused an underweight in Japan as we
sold Nikkei 225 futures as the source for cash. Japan's performance exceeded
the average of the other 19 countries in October by nearly 5%. Therefore, as
the largest country weight in the Portfolio at more than 30%, this underweight
caused negative tracking.
The other source for the performance difference in the quarter was stock
selection. Currently, the Portfolio holds 525 stocks while the index includes
1036 stocks. While optimized portfolios track well over longer time periods,
tracking error in shorter periods does vary. Since we completed restructuring
this Portfolio in May, we have maintained a predicted annual tracking error of
less that 0.45% as measured by the BARRA risk model. Over the period since
June, that prediction has been true.
Over the next quarter we will attempt to reduce monthly tracking error in two
ways. First, if Portfolio purchases and sales permit, we will add more stocks
to the Portfolio. Second, we will utilize FT100, CAC40 and DAX futures in
addition to Nikkei 225 futures. The FT100 tracks the UK market, the CAC40
covers France and the DAX covers Germany. Thus, we can raise cash by using a
basket of countries rather than just Japan. That will allow us to reduce the
disruptive effect redemptions have on the Portfolio's country weights.
[CHART APPEARS HERE]
22
<PAGE>
Inception: May 1, 1996
International Opportunities Portfolio Rowe Price-Fleming International,
Inc. Martin Wade
For the year, the MSCI EAFE benchmark was up 20%, helped by dollar weakness
that contributed about one-third of the gain. Europe, up 29%, was the
strongest international region in 1998, while Latin America, down 35%, was the
weakest. Latin America suffered the savage sell-off that afflicted the Far
East last year as "Asian contagion", exacerbated by the Russian default and
devaluation, induced a loss of confidence in Brazil and the region.
Looking forward, we see international economies growing more slowly. Our
cautious stance in the Pacific and Japan will help shield the Portfolio from
the pain that those markets must go through before they can emerge as
fundamentally healthy investment centers.
Corporate activity and restructuring in Europe are expected to continue as
Economic and Monetary Union (EMU), deregulation, and a weaker economy coincide
in the year ahead. The extent of corporate consolidation in Europe lags the
US, and thus there is further scope for industry concentration. Our enthusiasm
for Continental Europe remains high, as we continue to find businesses with
sustainable growth prospects, managed to maximize returns, at reasonable
valuations.
The Japanese government's long overdue action in the fourth quarter is
encouraging. We remain underweight, though, because at the stock level there
are relatively few companies focused on shareholder value, willing to take the
tough actions that may be required in the recessionary and deflationary
environment of Japan at present.
In the rest of the Far East, the bottom of the crisis may be at hand, but we
believe that valuations bear little relationship to the underlying merits of
the stocks. We retain our belief that Latin America offers attractions and
opportunity. The key remains avoiding a disorderly devaluation in Brazil. Our
view is that this is possible, and the Portfolio holdings will, in time, be
able to achieve valuations closer to those of international sector peers.
Confidence has clearly returned to global stock markets after the difficult
third quarter. Looking ahead, we believe that this renewed confidence, coupled
with healthy if unspectacular economic growth in Europe and signs that we are
at least closer to the bottom in Asia will lead to reasonable performance from
international equity markets in 1999.
[CHART APPEARS HERE]
23
<PAGE>
Inception: May 1, 1998
Emerging Markets Equity Portfolio Montgomery Asset Management, LLC. J.
Jimenez & B. Sudweeks
1998 was an extremely volatile year for emerging markets, marked by
exceptional swings in global volatility and investor sentiment. A huge bailout
package by the International Monetary Fund (IMF) announced at the beginning of
1998 offered some respite from selling pressure; however, the positive effect
of the rescue package on the financial markets was offset by a decline in the
value of the Japanese yen later in the year. This slide sparked investor fears
of another round of Southeast Asian currency devaluations like the prior year.
As investment capital left Asia for safer havens during the year, negative
sentiment proved infectious. Emerging markets in other regions also began to
experience capital flight. Capital dependent countries from Brazil to South
Africa were forced to raise short-term interest rates, risking future growth
prospects in order to stabilize their currencies and continue to attract
investors. This resulted in short-term market volatility across the asset
class.
There were some bright spots in the emerging markets picture, however. With
the exception of Russia, European emerging markets suffered far less
volatility than their counterparts in Asia, Latin America and Africa, and some
continued to achieve good returns. Greece was the standout, benefiting from
the positive investor sentiment currently enveloping European Union countries
ahead of the introduction of the EMU. Poland and Hungary, which are candidates
for accession to the European Union, also gained from the association.
The performance of the John Hancock Variable Series Trust Emerging Markets
Portfolio was -28.87% since inception (5/1/98), versus -28.92% for MSCI EM
Free Index for the same period. While since inception we have been able to
match the index, during the fourth quarter we gave up most of the value we
added during the initial months of managing the Portfolio. Our fundamental
based quantitative and qualitative approach to investing in this asset class,
which we expect to add value over the long term, was not rewarded during the
fourth quarter when stocks experienced extreme volatility. Our smaller cap
bias in some of the markets adversely impacted performance as we saw the same
trend evidenced in the U.S. and Europe where bigger was better. Also some of
our specific country bets worked against us. For example our underweight in
Korea in the fourth quarter and our overweights in Brazil and South Africa
detracted from our performance. On the other hand, our overweight in emerging
European markets such as Greece contributed to our performance.
24
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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>
ASSETS
Long term investments at
cost......................... $ 771,576 $851,738 $ 8,319 $162,862 $14,174 $55,256 $25,786 $68,410
Net unrealized
appreciation/(depreciation)
of investments............... 350,085 20,843 (1,312) 7,518 176 16,879 2,791 21,795
Short term investments at
market....................... 8,980 19,069 289 2,402 914 2,704 698 2,099
---------- -------- ------- -------- ------- ------- ------- -------
Total Investments........... 1,130,641 891,650 7,296 172,782 15,264 74,839 29,275 92,304
Cash......................... 8 1 46 319 533
Receivables for:
Investments sold............ 3,766 5,937 2,582 2,717
Fund shares sold............ 101 16 368
Interest.................... 13,604 280
Dividends................... 1,043 15 309 24 12 36 9
Unrealized appreciation in
forward foreign currency
contracts................... 97 538 33
---------- -------- ------- -------- ------- ------- ------- -------
TOTAL ASSETS................ 1,135,450 911,191 7,311 173,196 15,289 77,580 30,464 95,964
LIABILITIES
Payables for:
Investments purchased....... 8,539 3,856 4 2,710 43 1,862
Fund shares purchased....... 53 86 2
Futures contracts daily
variation margin............ 17
Other liabilities........... 94 128 1 40 4 21 5 17
---------- -------- ------- -------- ------- ------- ------- -------
TOTAL LIABILITIES........... 8,686 4,070 1 59 8 2,731 48 1,879
---------- -------- ------- -------- ------- ------- ------- -------
NET ASSETS................... $1,126,764 $907,121 $ 7,310 $173,137 $15,281 $74,849 $30,416 $94,085
========== ======== ======= ======== ======= ======= ======= =======
Shares of beneficial interest
outstanding.................. 43,016 91,429 1,032 11,127 1,548 5,763 2,734 6,224
---------- -------- ------- -------- ------- ------- ------- -------
Net asset value per share.... $ 26.19 $ 9.92 $ 7.09 $ 15.56 $ 9.87 $ 12.99 $ 11.12 $ 15.12
========== ======== ======= ======== ======= ======= ======= =======
Composition of net assets:
Capital Paid in............. 777,691 882,112 10,255 165,702 15,474 61,011 27,679 72,467
Accumulated net realized
gain/(loss) on investments.. (1,050) 3,988 (1,624) 108 (366) (3,045) 237 (141)
Undistributed/(distributions
in excess of) net investment
income...................... 38 178 (9) (173) (3) 4 (829) (69)
Net unrealized
appreciation/(depreciation)
of:
Investments................. 350,085 20,843 (1,312) 7,518 176 16,879 2,791 21,795
Foreign currency transla-
tion........................ 110 538 33
Futures contracts........... (128)
---------- -------- ------- -------- ------- ------- ------- -------
Net Assets................... $1,126,764 $907,121 $ 7,310 $173,137 $15,281 $74,849 $30,416 $94,085
========== ======== ======= ======== ======= ======= ======= =======
</TABLE>
See notes to financial statements.
25
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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........................ $106,130 $ 94,039 $166,644 $26,650 $4,681 $149,365 $2,538,433
Net unrealized
appreciation/(depreciation)
of investments.............. 11,665 (954) 22,922 458 264 1,279 1,119,298
Short term investments at
market...................... 5,459 $370,722 2,067 4,878 628 1,264 14,373
-------- -------- -------- -------- ------- ------ -------- ----------
Total Investments.......... 123,254 370,722 95,152 194,444 27,736 4,945 151,908 3,672,104
Cash........................ 1 1 64
Receivables for:
Investments sold........... 708 114
Fund shares sold........... 11 24,540 126 4
Interest................... 11 437
Dividends.................. 248 241 63 4 1,170 4,023
-------- -------- -------- -------- ------- ------ -------- ----------
TOTAL ASSETS............... 123,525 395,262 95,519 195,216 28,287 5,017 153,078 3,676,127
LIABILITIES
Payables for:
Investments purchased...... 151 688 1,752 282 4,856
Fund shares purchased...... 73 243 162
Other liabilities.......... 9 67 11 59 4 2 46 324
-------- -------- -------- -------- ------- ------ -------- ----------
TOTAL LIABILITIES.......... 160 67 699 1,884 286 2 289 5,342
-------- -------- -------- -------- ------- ------ -------- ----------
NET ASSETS.................. $123,365 $395,195 $ 94,820 $193,332 $28,001 $5,015 $152,789 $3,670,785
======== ======== ======== ======== ======= ====== ======== ==========
Shares of beneficial
interest outstanding........ 8,799 39,519 7,781 12,129 2,748 556 12,263 188,319
-------- -------- -------- -------- ------- ------ -------- ----------
Net asset value per share... $ 14.02 $ 10.00 $ 12.19 $ 15.94 $ 10.19 $ 9.02 $ 12.46 $ 19.49
======== ======== ======== ======== ======= ====== ======== ==========
Composition of net assets:
Capital Paid in............ 111,673 395,195 104,944 170,700 27,543 5,501 149,582 2,550,367
Accumulated net realized
loss on investments........ (8) (9,170) (290) (750) (180) (362)
Undistributed net
investment income.......... 35 2,108 1,482
Net unrealized
appreciation/(depreciation)
of:
Investments................ 11,665 (954) 22,922 458 264 1,279 1,119,298
Foreign currency transla-
tion.......................
Futures contracts..........
-------- -------- -------- -------- ------- ------ -------- ----------
Net Assets.................. $123,365 $395,195 $ 94,820 $193,332 $28,001 $5,015 $152,789 $3,670,785
======== ======== ======== ======== ======= ====== ======== ==========
</TABLE>
See notes to financial statements.
26
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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......................... $2,662,717 $73,522 $60,464 $54,893 $187,090 $14,870 $60,144
Net unrealized
appreciation/(depreciation)
of investments............... 606,741 (308) 2,277 6,453 45,998 (566) 2,593
Short term investments at
market....................... 197,120 2,814 1,240 2,865 248 205 9,045
---------- ------- ------- ------- -------- ------- -------
Total Investments........... 3,466,578 76,028 63,981 64,211 233,336 14,509 71,782
Cash......................... 2,197 37 68
Receivables for:
Investments sold............ 125,053 2 33 4,811
Fund shares sold............ 17 43 590 5 105
Interest.................... 15,369 1,201 303 807
Dividends................... 2,375 83 76 256
Futures contracts daily
variation margin............ 1 14
Unrealized appreciation in
forward foreign currency
contracts................... 130
---------- ------- ------- ------- -------- ------- -------
TOTAL ASSETS................ 3,611,573 77,246 64,107 64,326 234,297 14,817 77,635
LIABILITIES
Payables for:
Investments purchased....... 304,113 2 1,719 27 10,824
Fund shares purchased....... 236 51
Futures contracts daily
variation margin............ 2
Unrealized depreciation in
forward foreign currency
contracts................... 5,041
Other liabilities........... 273 52 12 23 1 18
---------- ------- ------- ------- -------- ------- -------
TOTAL LIABILITIES........... 309,663 52 12 76 1,719 28 10,844
---------- ------- ------- ------- -------- ------- -------
NET ASSETS................... $3,301,910 $77,194 $64,095 $64,250 $232,578 $14,789 $66,791
========== ======= ======= ======= ======== ======= =======
Shares of beneficial interest
outstanding.................. 211,171 7,682 5,531 5,260 13,139 1,602 6,301
---------- ------- ------- ------- -------- ------- -------
Net asset value per share.... $ 15.64 $ 10.05 $ 11.59 $ 12.21 $ 17.70 $ 9.23 $ 10.60
========== ======= ======= ======= ======== ======= =======
Composition of net assets:
Capital Paid in............. 2,698,050 77,623 66,361 58,135 186,595 15,355 64,192
Accumulated net realized
loss on investments......... (3,020) (208) (4,591) (392) (356) (1)
Undistributed/(distributions
in excess of) net investment
income...................... 4,698 87 48 52 85 (147)
Net unrealized
appreciation/(depreciation)
of:
Investments................. 606,741 (308) 2,277 6,453 45,998 (566) 2,593
Foreign currency
translation................. (4,875) 2 140
Futures contracts........... 316 256 14
---------- ------- ------- ------- -------- ------- -------
Net Assets................... $3,301,910 $77,194 $64,095 $64,250 $232,578 $14,789 $66,791
========== ======= ======= ======= ======== ======= =======
</TABLE>
See notes to financial statements.
27
<PAGE>
STATEMENT OF OPERATIONS
JOHN HANCOCK VARIABLE SERIES TRUST I
Year Ended December 31, 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.................. $ 547 $60,699 $ 24 $ 283 $ 54 $ 94 $ 859 $ 138
Dividends (Note B)........ 8,574 84 2,984 163 104 333 134
-------- ------- ------- ------- ----- ------- ------ -------
9,121 60,699 108 3,267 217 198 1,192 272
Expenses
Investment advisory fees
(Note C).................. 3,446 2,128 68 504 87 421 236 507
Auditors fees............. 35 34 11 15 11 12 12 12
Custodian fees............ 169 187 69 368 93 103 208 100
Fidelity bond fees........ 1 1 1 1
Legal fees................ 8 8 9 9 9 9 8 9
Printing & mailing fees... 100 96 33 125 34 37 35 37
Trustees fees............. 5 4 2 4 2 4 4 4
Other fees................ 1 1 6 1 1 1 1
-------- ------- ------- ------- ----- ------- ------ -------
3,765 2,459 192 1,032 237 588 504 670
Less expenses reimbursed
(Note C).................. 111 124 126 27 199 15
-------- ------- ------- ------- ----- ------- ------ -------
3,765 2,459 81 908 111 561 305 655
-------- ------- ------- ------- ----- ------- ------ -------
Net Investment
Income/(Loss).............. 5,356 58,240 27 2,359 106 (363) 887 (383)
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss)
on sales of investments... 104,660 12,121 (1,644) 24,001 (376) (271) 609 8,102
Increase in unrealized
appreciation/(depreciation)
of:
Investments............... 198,191 (3,300) (1,312) 4,183 176 10,212 2,412 15,541
Foreign currency
translation............... 107 660 75
-------- ------- ------- ------- ----- ------- ------ -------
Net realized and
unrealized gain/(loss) on
investments............... 302,851 8,821 (2,956) 28,291 (200) 9,941 3,681 23,718
-------- ------- ------- ------- ----- ------- ------ -------
Net increase/(decrease) in
net assets resulting from
operations................ $308,207 $67,061 $(2,929) $30,650 $ (94) $ 9,578 $4,568 $23,335
======== ======= ======= ======= ===== ======= ====== =======
</TABLE>
(*) Commenced investment operations on May 1, 1998.
See notes to financial statements.
28
<PAGE>
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
Year Ended December 31, 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................... $ 399 $16,754 $ 303 $ 393 $1,160 $ 28 $ 173 $ 1,695
Dividends (Note B)......... 2,592 1,368 1,150 4 10,843 46,457
------ ------- -------- ------- ------ ----- -------- --------
2,991 16,754 1,671 1,543 1,160 32 11,016 48,152
Expenses
Investment advisory fees
(Note C)................... 747 749 709 1,490 27 24 1,071 7,960
Auditors fees.............. 13 19 13 17 12 11 16 95
Custodian fees............. 105 80 75 105 42 59 81 410
Fidelity bond fees......... 1 1 1 1
Legal fees................. 9 8 9 8 9 9 8 8
Printing & mailing fees.... 40 54 39 133 35 33 47 268
Trustees fees.............. 4 5 4 5 2 2 5 5
Other fees................. 1 1 1 1 1 1
------ ------- -------- ------- ------ ----- -------- --------
920 916 851 1,760 127 139 1,229 8,747
Less expenses reimbursed
(Note C)................... 56 107
------ ------- -------- ------- ------ ----- -------- --------
920 916 851 1,760 71 32 1,229 8,747
------ ------- -------- ------- ------ ----- -------- --------
Net Investment
Income/(Loss)............... 2,071 15,838 820 (217) 1,089 0 9,787 39,405
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 4,295 (8,690) 2,111 267 (750) 1,614 320,993
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 2,592 (4,194) 8,644 458 264 (44,965) 486,604
Foreign currency
translation ...............
------ ------- -------- ------- ------ ----- -------- --------
Net realized and unrealized
gain/(loss) on investments. 6,887 (12,884) 10,755 725 (486) (43,351) 807,597
------ ------- -------- ------- ------ ----- -------- --------
Net increase/(decrease) in
net assets resulting from
operations................. $8,958 $15,838 $(12,064) $10,538 $1,814 $(486) $(33,564) $847,002
====== ======= ======== ======= ====== ===== ======== ========
</TABLE>
(*) Commenced investment operations on May 1, 1998.
See notes to financial statements.
29
<PAGE>
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
Year Ended December 31, 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................... $ 74,000 $4,306 $ 195 $ 144 $ 11 $626 $2,902
Dividends (Note B)......... 27,279 742 854 2,556 7
-------- ------ ------- ------ ------- ---- ------
101,279 4,306 937 998 2,567 633 2,902
Expenses
Investment advisory fees
(Note C)................... 9,826 193 446 441 271 49 329
Auditors fees.............. 91 13 12 12 15 11 12
Custodian fees............. 443 75 92 204 188 48 86
Fidelity bond fees......... 1 1 1 1
Legal fees................. 9 9 9 9 9 9 8
Printing & mailing fees.... 592 46 37 36 44 33 35
Trustees fees.............. 4 4 4 4 5 3 5
Other fees................. 1 1 1 1 11 1
-------- ------ ------- ------ ------- ---- ------
10,967 341 602 708 543 153 477
Less expenses reimbursed
(Note C)................... 17 145 543 85 31
-------- ------ ------- ------ ------- ---- ------
10,967 341 585 563 0 68 446
-------- ------ ------- ------ ------- ---- ------
Net Investment Income....... 90,312 3,965 352 435 2,567 565 2,456
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 215,053 (82) (4,544) (303) 3,458 7 (559)
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 261,761 (325) 253 6,179 34,583 (566) 2,172
Foreign currency
translation................ (4,875) 12 21
-------- ------ ------- ------ ------- ---- ------
Net realized and unrealized
gain/(loss) on investments. 471,939 (407) (4,291) 5,888 38,041 (559) 1,634
-------- ------ ------- ------ ------- ---- ------
Net increase/(decrease) in
net assets resulting from
operations................. $562,251 $3,558 $(3,939) $6,323 $40,608 $ 6 $4,090
======== ====== ======= ====== ======= ==== ======
</TABLE>
(*) Commenced investment operations on May 1, 1998.
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
Large Cap Growth Sovereign Bond Markets Equity
------------------------- ------------------------- ---------------
Period from
Year Ended Year Ended Year Ended Year Ended May 1, 1998(*)
December 31, December 31, December 31, December 31, to December 31,
1998 1997 1998 1997 1998
------------ ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 5,356 $ 5,606 $ 58,240 $ 54,042 $ 27
Net realized
gain/(loss) on
sales of
investments..... 104,660 62,455 12,121 5,170 (1,644)
Change in net unrealized appreciation/
(depreciation) of investments. 198,191 101,020 (3,300) 13,744 (1,312)
Foreign
currency
translation.....
---------- -------- -------- -------- -------
Net
increase/(decrease)
in net assets
resulting from
operations...... 308,207 169,081 67,061 72,956 (2,929)
Distributions to
Shareholders
From:
Net investment
income.......... (5,356) (5,606) (58,240) (54,042) (16)
Realized gain on
investments..... (104,621) (62,455) (12,168) (5,170)
Capital Paid in. (39) (11)
---------- -------- -------- -------- -------
Decrease in net
assets
resulting from
distributions... (110,016) (68,061) (70,408) (59,212) (27)
Trust Share
Transactions
Proceeds from
shares sold..... 132,463 120,441 120,694 84,388 11,982
Distributions
reinvested...... 110,016 68,061 70,408 59,212 27
Payment for
shares redeemed. (68,304) (59,269) (84,404) (79,685) (1,743)
---------- -------- -------- -------- -------
Increase from
trust share
transactions.... 174,175 129,233 106,698 63,915 10,266
---------- -------- -------- -------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 372,366 230,253 103,351 77,659 7,310
NET ASSETS
Beginning of
Period.......... 754,398 524,145 803,770 726,111
---------- -------- -------- -------- -------
End of Period... $1,126,764 $754,398 $907,121 $803,770 $ 7,310
========== ======== ======== ======== =======
Analysis of Trust
Share
Transactions:
Sold............ 5,424 5,923 12,001 8,549 1,271
Reinvested...... 4,217 3,289 7,044 6,020 4
Redeemed........ (2,861) (2,941) (8,405) (8,095) (243)
---------- -------- -------- -------- -------
Net increase in
shares
outstanding...... 6,780 6,271 10,640 6,474 1,032
========== ======== ======== ======== =======
<CAPTION>
Global Small Cap
International Equity Index Equity Growth
--------------------------------- --------------- -------------------------
Period from
Year Ended Year Ended May 1, 1998(*) Year Ended Year Ended
December 31, December 31, to December 31, December 31, December 31,
1998 1997 1998 1998 1997
---------------- ---------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 2,359 $ 1,263 $ 106 $ (363) $ (93)
Net realized
gain/(loss) on
sales of
investments..... 24,001 6,237 (376) (271) (1,285)
Change in net unrealized appreciation/
(depreciation) of investments. 4,183 (15,763) 176 10,212 5,855
Foreign
currency
translation..... 107 3
---------------- ---------------- --------------- ------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 30,650 (8,260) (94) 9,578 4,477
Distributions to
Shareholders
From:
Net investment
income.......... (2,321) (1,251) (99)
Realized gain on
investments..... (24,366) (6,315)
Capital Paid in. (7) (19)
---------------- ---------------- --------------- ------------ ------------
Decrease in net
assets
resulting from
distributions... (26,687) (7,566) (106) (19)
Trust Share
Transactions
Proceeds from
shares sold..... 24,581 37,058 17,755 31,182 33,960
Distributions
reinvested...... 26,687 7,566 106 19
Payment for
shares redeemed. (34,453) (32,192) (2,380) (14,672) (10,309)
---------------- ---------------- --------------- ------------ ------------
Increase from
trust share
transactions.... 16,815 12,432 15,481 16,510 23,670
---------------- ---------------- --------------- ------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 20,778 (3,394) 15,281 26,088 28,128
NET ASSETS
Beginning of
Period.......... 152,359 155,753 48,761 20,633
---------------- ---------------- --------------- ------------ ------------
End of Period... $ 173,137 $ 152,359 $15,281 $74,849 $ 48,761
================ ================ =============== ============ ============
Analysis of Trust
Share
Transactions:
Sold............ 1,470 2,174 1,800 2,779 3,175
Reinvested...... 1,703 489 11 2
Redeemed........ (2,070) (1,893) (263) (1,314) (956)
---------------- ---------------- --------------- ------------ ------------
Net increase in
shares
outstanding...... 1,103 770 1,548 1,465 2,221
================ ================ =============== ============ ============
</TABLE>
(*) Commencement of investment operations.
See notes to financial statements.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International Mid Cap Large Cap
Balanced Growth Value Money Market
------------------------- ------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, 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)... $ 887 $ 803 $ (383) $ (71) $ 2,071 $ 1,057 $ 15,838 $ 11,999
Net realized
gain/(loss) on
sales of
investments..... 609 533 8,102 (165) 4,295 1,866
Change in net
unrealized
appreciation/
(depreciation)
of investments.. 2,412 (530) 15,541 5,635 2,592 7,862
Foreign currency
translation..... 660 (188) 75 (42)
------- ------- -------- ------- -------- ------- --------- ---------
Net
increase/(decrease)
in net assets
resulting from
operations...... 4,568 618 23,335 5,357 8,958 10,785 15,838 11,999
Distributions to
Shareholders
From:
Net investment
income.......... (887) (793) (2,052) (1,057) (15,838) (11,999)
Realized gain on
investments..... (1,103) (530) (7,468) (4,289) (1,847)
Capital Paid in. (24) (29) (833) (21) (14)
------- ------- -------- ------- -------- ------- --------- ---------
Decrease in net
assets resulting
from
distributions... (2,014) (1,352) (8,301) (6,362) (2,918) (15,838) (11,999)
Trust Share
Transactions
Proceeds from
shares sold..... 6,272 9,111 40,746 23,097 53,200 47,942 386,221 183,336
Distributions
reinvested...... 2,014 1,352 8,301 6,362 2,918 15,838 11,999
Payment for
shares redeemed. (5,844) (8,407) (10,231) (4,711) (12,062) (5,239) (236,307) (179,127)
------- ------- -------- ------- -------- ------- --------- ---------
Increase from
trust share
transactions.... 2,442 2,056 38,816 18,386 47,500 45,621 165,752 16,208
------- ------- -------- ------- -------- ------- --------- ---------
NET INCREASE IN
NET ASSETS....... 4,996 1,322 53,850 23,743 50,096 53,488 165,752 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... $30,416 $25,420 $ 94,085 $40,235 $123,365 $73,269 $ 395,195 $ 229,443
======= ======= ======== ======= ======== ======= ========= =========
Analysis of Trust
Share
Transactions:
Sold............ 581 863 3,075 2,214 3,809 3,809 38,622 18,333
Reinvested...... 184 130 549 455 220 1,584 1,200
Redeemed........ (545) (798) (774) (454) (864) (414) (23,631) (17,913)
------- ------- -------- ------- -------- ------- --------- ---------
Net increase in
shares
outstanding...... 220 195 2,850 1,760 3,400 3,615 16,575 1,620
======= ======= ======== ======= ======== ======= ========= =========
<CAPTION>
Mid Cap
Value
-------------------------
Year Ended Year Ended
December 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 820 $ 165
Net realized
gain/(loss) on
sales of
investments..... (8,690) 4,133
Change in net
unrealized
appreciation/
(depreciation)
of investments.. (4,194) 2,209
Foreign currency
translation.....
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... (12,064) 6,507
Distributions to
Shareholders
From:
Net investment
income.......... (820) (165)
Realized gain on
investments..... (4,605)
Capital Paid in. (4)
------------ ------------
Decrease in net
assets resulting
from
distributions... (820) (4,774)
Trust Share
Transactions
Proceeds from
shares sold..... 63,576 54,265
Distributions
reinvested...... 820 4,774
Payment for
shares redeemed. (21,665) (6,725)
------------ ------------
Increase from
trust share
transactions.... 42,731 52,314
------------ ------------
NET INCREASE IN
NET ASSETS....... 29,847 54,047
NET ASSETS
Beginning of
Period.......... 64,973 10,926
------------ ------------
End of Period... $ 94,820 $64,973
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 4,722 3,902
Reinvested...... 66 347
Redeemed........ (1,693) (526)
------------ ------------
Net increase in
shares
outstanding...... 3,095 3,723
============ ============
</TABLE>
See notes to financial statements.
32
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Diversified Mid Bond Small/Mid
Cap Growth Index Cap CORE Real Estate Equity
------------------------- --------------- --------------- -------------------------
Period from Period from
Year Ended Year Ended May 1, 1998(*) May 1, 1998(*) Year Ended Year Ended
December 31, December 31, to December 31, to December 31, December 31, December 31,
1998 1997 1998 1998 1998 1997
------------ ------------ --------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ (217) $ 182 $ 1,089 $ 9,787 $ 8,981
Net realized
gain/(loss) on
sales of
investments..... 2,111 23,003 267 $ (750) 1,614 5,143
Change in net
unrealized
appreciation/
(depreciation)
of investments.. 8,644 (14,445) 458 264 (44,965) 14,800
Foreign currency
translation.....
-------- -------- ------- ------ -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... 10,538 8,740 1,814 (486) (33,564) 28,924
Distributions to
Shareholders
From:
Net investment
income.......... (182) (1,089) (8,848) (8,255)
Realized gain on
investments..... (3,671) (21,000) (267) (1,695) (5,072)
Capital Paid in. (58) (726)
-------- -------- ------- ------ -------- --------
Decrease in net
assets resulting
from
distributions... (3,671) (21,182) (1,356) (10,601) (14,053)
Trust Share
Transactions
Proceeds from
shares sold..... 18,908 59,814 26,269 6,188 22,171 46,042
Distributions
reinvested...... 3,671 21,182 1,356 10,601 14,053
Payment for
shares redeemed. (49,726) (49,050) (82) (687) (39,949) (21,940)
-------- -------- ------- ------ -------- --------
Increase/(decrease)
from trust share
transactions.... (27,147) 31,946 27,543 5,501 (7,177) 38,155
-------- -------- ------- ------ -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... (20,280) 19,504 28,001 5,015 (51,342) 53,026
NET ASSETS
Beginning of
Period.......... 213,612 194,108 204,131 151,105
-------- -------- ------- ------ -------- --------
End of Period... $193,332 $213,612 $28,001 $5,015 $152,789 $204,131
======== ======== ======= ====== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 1,216 3,754 2,623 636 1,549 3,046
Reinvested...... 230 1,387 133 778 905
Redeemed........ (3,201) (3,006) (8) (80) (2,894) (1,446)
-------- -------- ------- ------ -------- --------
Net
increase/(decrease)
in shares
outstanding...... (1,755) 2,135 2,748 556 (567) 2,505
======== ======== ======= ====== ======== ========
<CAPTION>
Growth & Income Managed
------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 39,405 $ 39,576 $ 90,312 $ 108,103
Net realized
gain/(loss) on
sales of
investments..... 320,993 313,348 215,053 157,179
Change in net
unrealized
appreciation/
(depreciation)
of investments.. 486,604 272,766 261,761 179,096
Foreign currency
translation..... (4,875)
------------ ------------ ------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 847,002 625,690 562,251 444,378
Distributions to
Shareholders
From:
Net investment
income.......... (39,405) (39,576) (90,312) (108,103)
Realized gain on
investments..... (320,993) (313,348) (212,457) (142,668)
Capital Paid in. (10,444) (14,546)
------------ ------------ ------------ ------------
Decrease in net
assets resulting
from
distributions... (360,398) (352,924) (313,213) (265,317)
Trust Share
Transactions
Proceeds from
shares sold..... 265,420 259,249 187,045 188,049
Distributions
reinvested...... 360,398 352,924 313,213 265,317
Payment for
shares redeemed. (227,601) (146,902) (247,513) (218,960)
------------ ------------ ------------ ------------
Increase/(decrease)
from trust share
transactions.... 398,217 465,271 252,745 234,406
------------ ------------ ------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 884,821 738,037 501,783 413,467
NET ASSETS
Beginning of
Period.......... 2,785,964 2,047,927 2,800,127 2,386,660
------------ ------------ ------------ ------------
End of Period... $3,670,785 $2,785,964 $3,301,910 $2,800,127
============ ============ ============ ============
Analysis of Trust
Share
Transactions:
Sold............ 14,254 15,437 12,059 13,184
Reinvested...... 18,597 21,287 20,147 18,557
Redeemed........ (12,305) (8,699) (16,174) (15,347)
------------ ------------ ------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 20,546 28,025 16,032 16,394
============ ============ ============ ============
</TABLE>
(*) Commencement of investment operations.
See notes to financial statements.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small Cap International
Short-Term Bond Value Opportunities Equity Index
------------------------- ------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, 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.......... $ 3,965 $ 3,428 $ 352 $ 159 $ 435 $ 156 $ 2,567 $ 1,055
Net realized
gain/(loss) on
sales of
investments..... (82) (31) (4,544) 3,158 (303) 268 3,458 1,622
Change in net
unrealized
appreciation/
(depreciation)
of investments.. (325) 374 253 1,324 6,179 (761) 34,583 10,449
Foreign currency
translation..... 12 (10) (1)
------- ------- ------- ------- ------- ------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... 3,558 3,771 (3,939) 4,641 6,323 (347) 40,608 13,125
Distributions to
Shareholders
From:
Net investment
income.......... (3,946) (3,446) (352) (159) (416) (188) (2,483) (1,055)
Realized gain on
investments..... (3,158) (235) (3,661) (1,534)
Capital Paid in. (202)
------- ------- ------- ------- ------- ------- -------- --------
Decrease in net
assets resulting
from
distributions... (3,946) (3,446) (352) (3,317) (416) (423) (6,144) (2,791)
Capital
Contribution.... 250
Trust Share
Transactions
Proceeds from
shares sold..... 48,539 26,167 35,658 33,708 41,865 29,765 117,380 86,808
Distributions
reinvested...... 3,946 3,446 352 3,317 416 423 6,144 2,791
Payment for
shares redeemed. (26,023) (37,494) (10,885) (5,629) (14,569) (16,685) (26,800) (13,443)
------- ------- ------- ------- ------- ------- -------- --------
Increase/(decrease)
from trust share
transactions.... 26,462 (7,881) 25,125 31,396 27,712 13,503 96,724 76,156
------- ------- ------- ------- ------- ------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 26,074 (7,556) 20,834 32,720 33,619 12,733 131,188 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... $77,194 $51,120 $64,095 $43,261 $64,250 $30,631 $232,578 $101,390
======= ======= ======= ======= ======= ======= ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 4,790 2,595 2,952 2,708 3,600 2,704 7,345 6,622
Reinvested...... 390 343 31 269 36 39 363 201
Redeemed........ (2,568) (3,708) (940) (471) (1,258) (1,550) (1,703) (1,009)
------- ------- ------- ------- ------- ------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 2,612 (770) 2,043 2,506 2,378 1,193 6,005 5,814
======= ======= ======= ======= ======= ======= ======== ========
<CAPTION>
High Yield Strategic
Bond Bond
--------------- -------------------------
Period from
May 1, 1998(*) Year Ended Year Ended
to December 31, December 31, December 31,
1998 1998 1997
--------------- ------------ ------------
<S> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 565 $ 2,456 $ 1,100
Net realized
gain/(loss) on
sales of
investments..... 7 (559) 373
Change in net
unrealized
appreciation/
(depreciation)
of investments.. (566) 2,172 169
Foreign currency
translation..... 21 119
--------------- ------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 6 4,090 1,761
Distributions to
Shareholders
From:
Net investment
income.......... (565) (1,387) (1,222)
Realized gain on
investments..... (7) (534) (373)
Capital Paid in. (891) (94)
--------------- ------------ ------------
Decrease in net
assets resulting
from
distributions... (572) (2,812) (1,689)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 16,627 45,716 21,531
Distributions
reinvested...... 572 2,812 1,689
Payment for
shares redeemed. (1,844) (11,662) (7,552)
--------------- ------------ ------------
Increase/(decrease)
from trust share
transactions.... 15,355 36,866 15,668
--------------- ------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 14,789 38,144 15,740
NET ASSETS
Beginning of
Period.......... 28,647 12,907
--------------- ------------ ------------
End of Period... $14,789 $66,791 $28,647
=============== ============ ============
Analysis of Trust
Share
Transactions:
Sold............ 1,741 4,340 2,099
Reinvested...... 61 266 165
Redeemed........ (200) (1,102) (738)
--------------- ------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 1,602 3,504 1,526
=============== ============ ============
</TABLE>
(*) Commencement of investment operations.
See notes to financial statements.
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 Distribution
Net Asset and Total Distribution From Net Distributions
Value at Net Unrealized From From Net Gains From
Beginning Investment Gain(Loss) Investment Investment on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Year Ended
December 31,
1998............ $20.82 $0.14 $8.05 $8.19 $(0.14) $(2.68) $ -- $(2.82)
1997............ 17.49 0.17 5.21 5.38 (0.17) (1.88) -- (2.05)
1996............ 17.37 0.25 2.89 3.14 (0.25) (2.77) -- (3.02)
1995............ 14.41 0.44 4.06 4.50 (0.44) (0.84) (0.26) (1.54)
1994............ 15.38 0.39 (0.54) (0.15) (0.39) (0.43) -- (0.82)
- --------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Year Ended
December 31,
1998............ 9.95 0.69 0.11 0.80 (0.69) (0.14) -- (0.83)
1997............ 9.77 0.71 0.24 0.95 (0.71) (0.06) -- (0.77)
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- (0.74)
1995............ 9.19 0.71 1.03 1.74 (0.71) (0.09) -- (0.80)
1994............ 10.14 0.70 (0.95) (0.25) (0.70) -- -- (0.70)
- --------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Period from May
1, to December
31, 1998 (c).... 10.00 0.03 (2.91) (2.88) (0.02) -- (0.01) (0.03)
- --------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Year Ended
December 31,
1998............ 15.20 0.23 2.91 3.14 (0.23) (2.55) -- (2.78)
1997............ 16.83 0.13 (0.97) (0.84) (0.13) (0.66) -- (0.79)
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- (0.21)
1995............ 14.62 0.17 0.99 1.16 (0.16) -- (0.01) (0.17)
1994............ 15.85 0.12 (1.10) (0.98) (0.12) (0.13) -- (0.25)
- --------------------------------------------------------------------------------------------------------------------------
Global Equity
Period from May
1, to December
31, 1998 (c).... 10.00 0.07 (0.13) (0.06) (0.07) -- -- (0.07)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio
End (000's) Investment (000's) Average Average Turnover
of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
--------- ----------- ------------- ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Year Ended
December 31,
1998............ $26.19 43,016 39.51% $1,126,764 0.41% 0.59% 56.41%
1997............ 20.82 36,236 30.89% 754,398 0.44% 0.86% 83.82%
1996............ 17.49 29,965 18.27% 524,145 0.44% 1.35% 135.98%
1995............ 17.37 21,895 31.64% 380,276 0.47% 2.70% 90.18%
1994............ 14.41 15,546 (0.98)% 223,957 0.47% 2.69% 80.51%
- --------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Year Ended
December 31,
1998............ 9.92 91,429 8.23% 907,121 0.29% 6.84% 228.74%
1997............ 9.95 80,789 10.11% 803,770 0.31% 7.18% 138.29%
1996............ 9.77 74,315 4.10% 726,111 0.29% 7.07% 119.12%
1995............ 10.13 69,148 19.55% 700,309 0.30% 7.20% 63.31%
1994............ 9.19 63,907 (2.57)% 587,077 0.29% 7.27% 21.80%
- --------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Period from May
1, to December
31, 1998 (c).... 7.09 1,032 (28.87)%(e) 7,310 1.55%(d)(i) 0.51%(d) 53.95%(e)
- --------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Year Ended
December 31,
1998............ 15.56 11,127 20.82% 173,137 0.56%(g) 1.45% 158.63%
1997............ 15.20 10,024 (5.03)% 152,359 0.79% 0.78% 83.13%
1996............ 16.83 9,254 9.19% 155,753 0.76% 1.30% 92.03%
1995............ 15.61 8,123 8.01% 126,803 0.84%(g) 1.34% 65.82%
1994............ 14.62 8,162 (6.26)% 119,331 0.85%(g) 0.85% 78.21%
- --------------------------------------------------------------------------------------------------------------------------
Global Equity
Period from May
1, to December
31, 1998 (c).... 9.87 1,548 (0.55)%(e) 15,281 1.15%(d)(w) 1.11%(d) 33.17%(e)
- --------------------------------------------------------------------------------------------------------------------------
</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
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain (Loss) on Investment Investment Gains on Capital Total
of Period Income/(Loss) Investments(a) Operations Income Investments Paid in Distributions
--------- ------------- -------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small Cap Growth
Year Ended
December 31,
1998............ $11.34 $(0.05) $ 1.70 $ 1.65 $ -- $ -- $ -- $ --
1997............ 9.93 (0.02) 1.44 1.42 -- -- (0.01) (0.01)
Period from May
1, to December
31, 1996 (c).... 10.00 0.01 (0.06) (0.05) (0.02) -- -- (0.02)
- --------------------------------------------------------------------------------------------------------------------------
International
Balanced
Year Ended
December 31,
1998............ 10.11 0.34 1.44 1.78 (0.34) (0.42) (0.01) (0.77)
1997............ 10.39 0.33 (0.05) 0.28 (0.33) (0.22) (0.01) (0.56)
Period from May
1, to December
31, 1996 (c).... 10.00 0.24 0.41 0.65 (0.24) (0.02) -- (0.26)
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Year Ended
December 31,
1998............ 11.93 (0.09) 4.75 4.66 -- (1.32) (0.15) (1.47)
1997............ 10.22 (0.02) 1.73 1.71 -- -- -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.05 0.22 0.27 (0.05) -- -- (0.05)
- --------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Year Ended
December 31,
1998............ 13.57 0.28 0.96 1.24 (0.28) (0.51) -- (0.79)
1997............ 11.09 0.29 2.84 3.13 (0.29) (0.36) -- (0.65)
Period from May
1, to December
31, 1996 (c).... 10.00 0.16 1.22 1.38 (0.16) (0.13) -- (0.29)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio
End (000's Investment (000's Average Average Turnover
of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
--------- ----------- ------------- ------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Small Cap Growth
Year Ended
December 31,
1998............ $12.99 5,763 14.49% $ 74,849 1.00%(k) (0.65)% 101.16%
1997............ 11.34 4,298 14.26% 48,761 1.00%(k) (0.28)% 86.23%
Period from May
1, to December
31, 1996 (c).... 9.93 2,077 (0.50)%(e) 20,633 1.00%(d)(k) 0.12%(d) 50.93%(e)
- --------------------------------------------------------------------------------------------------------------------------
International
Balanced
Year Ended
December 31,
1998............ 11.12 2,734 17.99% 30,416 1.10%(l) 3.20% 103.55%
1997............ 10.11 2,514 2.65% 25,420 1.10%(l) 3.18% 81.04%
Period from May
1, to December
31, 1996 (c).... 10.39 2,319 6.73%(e) 24,098 1.10%(d)(l) 3.59%(d) 22.21%(e)
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Year Ended
December 31,
1998............ 15.12 6,224 39.07% 94,085 1.10%(m) (0.64)% 137.01%
1997............ 11.93 3,374 16.66% 40,235 1.10% (0.26)% 124.04%
Period from May
1, to December
31, 1996 (c).... 10.22 1,613 2.69%(e) 16,492 1.10%(d)(m) 0.92%(d) 71.25%(e)
- --------------------------------------------------------------------------------------------------------------------------
Large Cap Value
Year Ended
December 31,
1998............ 14.02 8,799 9.26% 123,365 0.92% 2.08% 18.46%
1997............ 13.57 5,399 28.56% 73,269 1.00%(n) 2.42% 19.21%
Period from May
1, to December
31, 1996 (c).... 11.09 1,784 13.90%(e) 19,781 1.00%(d)(n) 2.74%(d) 19.95%(e)
- --------------------------------------------------------------------------------------------------------------------------
</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
Value at Net Unrealized From From Net From Net From
Beginning Investment Gain (Loss) on Investment Investment Gains on Capital Total
of Period Income/(Loss) Investments(a) Operations Income Investments Paid in Distributions
--------- ------------- -------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market
Year Ended
December 31,
1998............ $10.00 $ 0.53 $ -- $ 0.53 $(0.53) $ -- $ -- $(0.53)
1997............ 10.00 0.53 0.53 (0.53) (0.53)
1996............ 10.00 0.52 -- 0.52 (0.52) -- -- (0.52)
1995............ 10.00 0.57 -- 0.57 (0.57) -- -- (0.57)
1994............ 10.00 0.40 -- 0.40 (0.40) -- -- (0.40)
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Year Ended
December 31,
1998............ 13.87 0.11 (1.68) (1.57) (0.11) -- -- (0.11)
1997............ 11.35 0.05 3.59 3.64 (0.05) (1.07) -- (1.12)
Period from May
1, to December
31, 1996 (c).... 10.00 0.04 1.57 1.61 (0.04) (0.22) -- (0.26)
- --------------------------------------------------------------------------------------------------------------------------
Diversified Mid Cap Growth
Year Ended
December 31,
1998............ 15.39 (0.02) 0.88 0.86 -- (0.31) -- (0.31)
1997............ 16.52 0.01 0.56 0.57 (0.01) (1.69) -- (1.70)
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- (0.67)
1995............ 9.94 (0.01) 3.58 3.57 -- (0.32) (0.01) (0.33)
Period from May
1, to December
31, 1994 (c).... 10.00 0.11 (0.06) 0.05 -- (0.11) -- (0.11)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio
End (000's Investment (000's Average Average Turnover
of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
--------- ----------- ------------ ------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market
Year Ended
December 31,
1998............ $10.00 39,519 5.40% $395,195 0.31% 5.29% --
1997............ 10.00 22,944 5.38% 229,443 0.33% 5.32%
1996............ 10.00 21,324 5.32% 213,235 0.30% 5.20% --
1995............ 10.00 18,591 5.78% 185,909 0.35% 5.62% --
1994............ 10.00 14,867 4.03% 148,668 0.32% 4.05% --
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Year Ended
December 31,
1998............ 12.19 7,781 (11.33)% 94,820 0.96% 0.93% 173.33%
1997............ 13.87 4,686 32.17% 64,973 1.05%(o) 0.53% 93.78%
Period from May
1, to December
31, 1996 (c).... 11.35 963 16.18%(e) 10,926 1.05%(d)(o) 0.69%(d) 62.99%(e)
- --------------------------------------------------------------------------------------------------------------------------
Diversified Mid Cap Growth
Year Ended
December 31,
1998............ 15.94 12,129 5.61% 193,332 0.89% (0.11)% 162.21%
1997............ 15.39 13,884 3.44% 213,612 0.85% 0.09% 331.19%
1996............ 16.52 11,749 30.33% 194,108 0.84% 0.18% 217.84%
1995............ 13.18 4,133 35.96% 54,486 1.00%(h) (0.11)% 139.31%
Period from May
1, to December
31, 1994 (c).... 9.94 722 0.56%(e) 7,181 1.00%(d)(h) 1.51%(d) 26.54%(e)
- --------------------------------------------------------------------------------------------------------------------------
</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
Period from May
1, to December
31, 1998 (c).... $10.00 $0.42 $ 0.29 $ 0.71 $(0.42) $(0.10) $ -- $(0.52) $10.19
- ---------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Period from May
1, to December
31, 1998 (c).... 10.00 -- (0.98) (0.98) -- -- -- -- 9.02
- ---------------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Year Ended
December 31,
1998............ 15.91 0.77 (3.38) (2.61) (0.70) (0.14) -- (0.84) 12.46
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
Year Ended
December 31,
1998............ 16.61 0.23 4.75 4.98 (0.23) (1.87) -- (2.10) 19.49
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
(000's Investment (000's Average Average Turnover
Omitted) Return(b) Omitted) Net Assets Net Assets Rate
----------- ------------- ------------- --------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Bond Index
Period from May
1, to December
31, 1998 (c).... 2,748 7.20%(e) $ 28,001 0.40%(d)(x) 6.17%(d) 21.09%(e)
- ---------------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Period from May
1, to December
31, 1998 (c).... 556 (9.81)%(e) 5,015 1.05%(d)(y) (0.01)%(d) 60.51%(e)
- ---------------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Year Ended
December 31,
1998............ 12,263 (16.71)% 152,789 0.69% 5.48% 22.69%
1997............ 12,830 17.22% 204,131 0.69% 5.12% 20.04%
1996............ 10,325 33.07% 151,105 0.69% 6.14% 18.37%
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
Year Ended
December 31,
1998............ 188,319 30.25% 3,670,785 0.27% 1.24% 48.45%
1997............ 167,773 29.79% 2,785,964 0.28% 1.61% 74.56%
1996............ 139,748 20.10% 2,047,927 0.27% 2.24% 81.02%
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 Distribution
Net Asset and Total Distribution From Net Distributions
Value at Net Unrealized From From Net Gains From
Beginning Investment Gain(Loss) Investment Investment on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed
Year Ended
December 31,
1998............ $14.35 $0.46 $ 2.43 $ 2.89 $(0.46) $(1.09) $(0.05) $(1.60)
1997............ 13.35 0.59 1.86 2.45 (0.59) (0.78) (0.08) (1.45)
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- (1.80)
1995............ 11.96 0.62 2.56 3.18 (0.62) (0.79) -- (1.41)
1994............ 12.81 0.55 (0.83) (0.28) (0.55) (0.02) -- (0.57)
- --------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Year Ended
December 31,
1998............ 10.08 0.61 (0.03) 0.58 (0.61) -- -- (0.61)
1997............ 10.05 0.59 0.03 0.62 (0.59) -- -- (0.59)
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- (0.54)
1995............ 9.66 0.50 0.59 1.09 (0.50) (0.02) -- (f) (0.52)
Period from May
1, to December
31, 1994 (c).... 10.00 0.37 (0.34) 0.03 (0.37) -- -- (0.37)
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Year Ended
December 31,
1998............ 12.40 0.07 (0.81) (0.74) (0.07) -- -- (0.07)
1997............ 10.73 0.08 2.66 2.74 (0.08) (0.99) -- (1.07)
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.96 1.03 (0.07) (0.23) -- (0.30)
- --------------------------------------------------------------------------------------------------------------------------
International
Opportunities
Year Ended
December 31,
1998............ 10.63 0.11 1.57 1.68 (0.10) -- -- (0.10)
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- (0.18)
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.60 0.67 (0.07) -- -- (0.07)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio
End (000's) Investment (000's) Average Average Turnover
of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
--------- ----------- ------------ ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Managed
Year Ended
December 31,
1998............ $15.64 211,171 20.42% $3,301,910 0.36% 2.99% 160.57%
1997............ 14.35 195,139 18.72% 2,800,127 0.37% 4.18% 200.41%
1996............ 13.35 178,745 10.72% 2,386,660 0.36% 4.41% 113.61%
1995............ 13.73 152,544 27.09% 2,093,964 0.38% 4.66% 187.67%
1994............ 11.96 134,588 (2.23)% 1,609,939 0.37% 4.50% 90.41%
- --------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Year Ended
December 31,
1998............ 10.05 7,682 5.82% 77,194 0.53% 6.17% 184.50%
1997............ 10.08 5,070 6.41% 51,120 0.57% 5.67% 108.29%
1996............ 10.05 5,840 3.61% 58,676 0.75%(j) 5.66% 20.68%
1995............ 10.23 1,750 11.49% 17,911 0.75%(j) 5.52% 109.77%
Period from May
1, to December
31, 1994 (c).... 9.66 178 0.33%(e) 1,718 0.75%(d)(j) 5.82%(d) 11.22%(e)
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Year Ended
December 31,
1998............ 11.59 5,531 (5.96)% 64,095 1.05%(p) 0.63% 100.83%
1997............ 12.40 3,488 25.57% 43,261 1.05%(p) 0.68% 126.10%
Period from May
1, to December
31, 1996 (c).... 10.73 982 10.33%(e) 10,541 1.05%(d)(p) 1.15%(d) 66.31%(e)
- --------------------------------------------------------------------------------------------------------------------------
International
Opportunities
Year Ended
December 31,
1998............ 12.21 5,260 15.92% 64,250 1.16%(q) 0.89% 18.67%
1997............ 10.63 2,882 1.95% 30,631 1.22%(q) 0.65% 21.09%
Period from May
1, to December
31, 1996 (c).... 10.60 1,689 6.72%(e) 17,898 1.25%(d)(q) 0.87%(d) 5.46%(e)
- --------------------------------------------------------------------------------------------------------------------------
</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 Distribution
Net Asset and Total Distribution From Net Distributions
Value at Net Unrealized From From Net Gains From
Beginning Investment Gain(Loss) Investment Investment on Capital Total
of Period Income on Investments(a) Operations Income Investments Paid in Distributions
--------- ---------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Index
Year Ended
December 31,
1998............ $14.21 $0.25 $ 3.76 $ 4.01 $(0.24) $(0.28) $ -- $(0.52)
1997............ 11.10 0.24 3.41 3.65 (0.24) (0.25) (0.05) (0.54)
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)
- --------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Period from May
1, to
December 31,
1998 (c)........ 10.00 0.46 (0.76) (0.30) (0.46) (0.01) -- (0.47)
- --------------------------------------------------------------------------------------------------------------------------
Strategic Bond
Year Ended De-
cember 31,
1998............ 10.24 0.54 0.38 0.92 (0.29) (0.09) (0.18) (0.56)
1997............ 10.16 0.59 0.30 0.89 (0.61) (0.15) (0.05) (0.81)
Period from May
1, to
December 31,
1996 (c)........ 10.00 0.38 0.28 0.66 (0.38) (0.12) -- (0.50)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------
Number of Net
Net Asset Shares Net Assets Operating Investment
Value at Outstanding Total End of Period Expenses to Income to Portfolio
End (000's) Investment (000's) Average Average Turnover
of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
--------- ----------- --------------- ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity Index
Year Ended
December 31,
1998............ $17.70 13,139 28.45% $232,578 0.00%(r) 1.59% 43.31%
1997............ 14.21 7,134 32.79%(v) 101,390 0.00%(r) 1.97% 64.56%
Period from May
1, to
December 31,
1996 (c)........ 11.10 1,320 14.23%(e)(u) 14,650 0.00%(d)(r) 2.47%(d) 15.72%(e)
- ---------------------------------------------------------------------------------------------------------------
High Yield Bond
Period from May
1, to
December 31,
1998 (c)........ 9.23 1,602 (2.98)%(e) 14,789 .90%(d)(z) 7.43%(d) 17.67%(e)
- ---------------------------------------------------------------------------------------------------------------
Strategic Bond
Year Ended De-
cember 31,
1998............ 10.60 6,301 9.15% 66,791 .95%(s) 5.27% 186.70%
1997............ 10.24 2,797 9.05% 28,647 1.00%(s) 5.80% 69.38%
Period from May
1, to
December 31,
1996 (c)........ 10.16 1,271 6.71%(e) 12,907 1.00%(d)(s) 6.05%(d) 171.39%(e)
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) The amount shown at this caption for each share outstanding throughout the
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 .63%, .87%, .87%, and 1.13%
for the years ended December 31, 1998, 1995, 1994 and 1993, respectively.
(h) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.91%, and 6.05%, for the
years ended December 31, 1995 and 1994, respectively.
40
<PAGE>
(i) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 3.69%, for the year ended
December 31, 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%, 1.12%, and 1.55%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.82%, 1.56%, and 1.44% for
the years ended December 31, 1998, 1997, and 1996, respectively.
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.13%, 1.42%, and 2.34%, for
the years ended December 31, 1998, 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 1.08%, 1.30%, and 2.06%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.46%, 1.57%, and 2.76%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(r) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .34%, .65%, and 1.61%, for the
years ended December 31, 1998, 1997, and 1996, respectively.
(s) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.02%, 1.32%, and 1.57%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(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 2.47%, for the year ended
December 31, 1998.
(x) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .71%, for the year ended
December 31, 1998.
(y) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 4.55%, for the year ended
December 31, 1998.
(z) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.03%, for the year ended
December 31, 1998.
41
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 $ 31,864
Auto and Truck Parts - 0.2%
Lear Corp. * .................................... 50,000 1,925
Automobile - 0.7%
Ford Motor Co. .................................. 134,100 7,870
Banks - 1.4%
BankAmerica Corp. ............................... 24,103 1,449
Comerica, Inc. .................................. 100,000 6,819
State Street Corp. .............................. 27,000 1,878
Wells Fargo & Co. ............................... 150,400 6,007
----------
16,153
Chemicals - 0.5%
Air Products & Chemicals, Inc. .................. 56,600 2,264
Solutia, Inc. ................................... 141,500 3,166
----------
5,430
Computer Equipment - 7.1%
Compaq Computer Corp. ........................... 375,900 15,764
Dell Computer Corp. * ........................... 226,700 16,592
Intel Corp. ..................................... 291,300 34,537
Network Appliance, Inc. * ....................... 65,000 2,925
Xerox Corp. ..................................... 90,600 10,691
----------
80,509
Computer Software and Services - 10.3%
Autodesk, Inc. .................................. 152,900 6,527
Cadence Design Systems, Inc. * .................. 348,900 10,380
Computer Associates International, Inc. ......... 338,050 14,409
First Data Corp. ................................ 226,000 7,161
J.D. Edwards & Co. * ............................ 100,000 2,838
Microsoft Corp. ................................. 480,900 66,695
Sun Microsystems, Inc. * ........................ 89,800 7,689
----------
115,699
Consumer - Miscellaneous - 1.4%
Avery Dennison Corp. ............................ 116,100 5,232
Honeywell, Inc. ................................. 139,600 10,513
----------
15,745
Cosmetics and Personal Care Products - 3.5%
Avon Products, Inc. ............................. 173,200 7,664
Colgate-Palmolive Co. ........................... 45,000 4,180
Dial Corp. ...................................... 105,700 3,052
Procter & Gamble Co. ............................ 261,600 23,887
Revlon, Inc. - Cl. A * .......................... 36,000 592
----------
39,375
Diversified Operations - 7.3%
General Electric Co. ............................ 543,300 55,451
Reynolds & Reynolds Co. - Cl. A ................. 120,000 2,753
Textron, Inc. ................................... 68,800 5,224
Tyco International, Ltd. ........................ 248,900 18,776
----------
82,204
Electronic Products and Services - 4.6%
Analog Devices, Inc. * .......................... 1
Cisco Systems, Inc. * ........................... 189,100 17,551
Pitney Bowes, Inc. .............................. 454,000 29,992
Teradyne, Inc. * ................................ 90,000 3,814
----------
51,357
Financial Services - 2.0%
Associates First Capital Corp. - Cl. A .......... 100,090 4,241
Citigroup, Inc. ................................. 377,100 18,667
----------
22,908
Food, Beverage and Tobacco - 5.3%
Flowers Industries, Inc. ........................ 100,000 2,394
PepsiCo, Inc. ................................... 240,700 9,853
Philip Morris Cos., Inc. ........................ 500,000 26,750
Quaker Oats Co. ................................. 243,800 14,506
UST, Inc. ....................................... 169,600 5,915
----------
59,418
Health Care Products - 17.9%
Abbott Laboratories ............................. 246,900 12,098
Amgen, Inc. * ................................... 67,500 7,058
Becton, Dickinson & Co. ......................... 82,800 3,535
Bristol-Myers Squibb Co. ........................ 232,200 31,071
Cardinal Health, Inc. ........................... 332,550 25,232
Eli Lilly & Co. ................................. 39,000 3,466
Guidant Corp. ................................... 179,200 19,757
Johnson & Johnson ............................... 110,700 9,285
McKesson Corp. .................................. 122,500 9,685
Merck & Co., Inc. ............................... 147,500 21,784
Mylan Laboratories, Inc. ........................ 530,900 16,723
Pfizer, Inc. .................................... 227,200 28,500
Schering-Plough Corp. ........................... 154,600 8,542
Warner-Lambert Co. .............................. 70,000 5,263
----------
201,999
Health Care Services - 2.7%
Health Management Associates, Inc. - Cl.
A * ............................................ 373,000 8,066
HEALTHSOUTH Corp. * ............................. 994,400 15,351
Lincare Holdings, Inc. .......................... 171,400 6,953
----------
30,370
Housing - 0.2%
Clayton Homes, Inc. ............................. 186,875 2,581
Insurance - 4.2%
Allstate Corp. .................................. 230,800 8,915
American International Group, Inc. .............. 105,500 10,194
Equitable Cos., Inc. ............................ 57,400 3,322
Hartford Financial Services Group, Inc. ......... 144,600 7,935
Marsh & McLennan Cos., Inc. ..................... 129,600 7,573
42
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - Continued
PartnerRe, Ltd. ................................. 200,000 $ 9,150
----------
47,089
Media - Publishing - 0.4%
Warnaco Group, Inc. - Cl. A ..................... 183,900 4,643
Media - TV / Radio - 0.7%
Viacom, Inc. - Cl. B * .......................... 105,300 7,792
Metals and Mining - 0.2%
Precision Castparts Corp. ....................... 38,600 1,708
Paper and Forest Products - 0.1%
Fort James Corp. ................................ 42,200 1,688
Personal and Commercial Lending - 0.6%
MBNA Corp. ...................................... 288,675 7,199
Pollution Control - 1.9%
Allied Waste Industries, Inc. * ................. 354,900 8,384
Waste Management, Inc. .......................... 281,800 13,139
----------
21,523
Retail - Department Stores - 7.8%
Dayton-Hudson Corp. ............................. 69,800 3,787
Home Depot, Inc. ................................ 615,000 37,630
Lowe's Cos., Inc. ............................... 250,000 12,797
Staples, Inc. * ................................. 196,500 8,584
Tandy Corp. ..................................... 300,800 12,389
TJX Cos., Inc. .................................. 320,400 9,292
Wal-Mart Stores, Inc. ........................... 46,000 3,746
----------
88,225
Retail - Food - 0.6%
Tricon Global Restaurants, Inc. * ............... 126,000 6,316
Shoe and Apparel Manufacturing - 2.0%
Jones Apparel Group, Inc. * ..................... 446,500 9,851
Tommy Hilfiger Corp. * .......................... 210,000 12,600
----------
22,451
Telecommunication Equipment - 5.8%
Lucent Technologies, Inc. ....................... 469,002 51,590
Northern Telecom, Ltd. .......................... 133,200 6,677
Tellabs, Inc. * ................................. 109,400 7,501
----------
65,768
Telephone - 4.1%
AT&T Corp. ...................................... 118,400 8,909
MCI WorldCom, Inc. .............................. 519,900 37,303
----------
46,212
Transportation Services - 2.1%
Burlington Northern Santa Fe .................... 226,200 7,634
Kansas City Southern Industries, Inc. ........... 100,000 4,919
Northwest Airlines Corp. * ...................... 69,100 1,766
Southwest Airlines Co. .......................... 155,250 3,484
UAL Corp. ....................................... 91,800 5,479
----------
23,282
U.S. Government Agencies - 1.1%
Federal National Mortgage Assoc. ................ 167,000 12,358
----------
TOTAL COMMON STOCK- 99.5% 1,121,661
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.8%
Investment in joint trading account
(Note B)
6.101% due 01/04/99 ............................ $ 8,979 8,980
---------- ----------
TOTAL INVESTMENTS- 100.3% 1,130,641
Payables, less cash and receivables- (0.3)% (3,877)
---------- ----------
NET ASSETS- 100.0% $1,126,764
---------- ----------
* Non-income producing security.
See notes to financial statements.
43
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 $ 2,621
Agricultural Operations - 1.0%
IMC Global, Inc. - Notes
7.40% due 11/01/02 .............................. 3,200 3,240
Marlin Water Trust - Sr. Notes 144A (a)
7.09% due 12/15/01 .............................. 3,160 3,169
Monsanto Co. - Debs. 144A (a)
6.60% due 12/01/28 .............................. 2,610 2,617
--------
9,026
Auto and Truck Parts - 0.5%
General Motors Corp.
9.625% due 12/01/00 ............................. 4,000 4,306
Automobile - 0.2%
Ford Motor Co. - Debs.
9.00% due 09/15/01 .............................. 2,000 2,176
Banks - 4.0%
Abbey National First Capital - Sr. Sub. Notes
8.20% due 10/15/04 .............................. 4,000 4,475
Banc One Corp. - Sub. Debs.
7.625% due 10/15/26 ............................. 2,570 2,946
BankAmerica Corp. - Sub. Notes
6.375% due 02/15/08 ............................. 2,420 2,513
Citibank Credit Card Master Trust I - Ser.
1997-7 A
6.35% due 08/15/02 .............................. 2,360 2,403
InterAmerican Development Bank - Debs.
8.50% due 03/15/11 .............................. 6,000 7,648
International Bank of Reconstruction &
Development
8.25% due 09/01/16 .............................. 2,150 2,763
National Westminister Bank, NY
9.45% due 05/01/01 .............................. 5,000 5,409
NB Capital Trust IV
8.25% due 04/15/27 .............................. 1,680 1,907
RBSG Capital Corp. - Notes
10.125% due 03/01/04 ............................ 5,000 5,931
----------
35,995
Brokerage and Investment Management - 1.0%
DR Investments - Sr. Notes 144A (a)
7.45% due 05/15/07 .............................. 1,800 1,938
Morgan Stanley Group, Inc.
8.875% due 10/15/01 ............................. 3,000 3,243
Nomura Asset Securities Corp. - Ser. 1998-D6
A1A
6.28% due 03/17/28 .............................. 2,317 2,329
Salomon Brothers Mortgage Securities VII
6.75% due 07/25/24 .............................. 1,890 1,910
----------
9,420
Chemicals - 0.2%
Akzo Nobel, Inc. - Bonds 144A (a)
6.00% due 11/15/03 .............................. 1,630 1,638
Coal - 0.1%
P&L Coal Holdings Corp.
9.625% due 05/15/08 ............................. 900 916
Commercial Services - 0.9%
Harvard University - Debs
8.125% due 04/15/07 ............................. 5,000 5,906
Primark Corp. - Sr. Sub. Notes 144A (a)
9.25% due 12/15/08 .............................. 1,830 1,839
----------
7,745
Computer Equipment - 0.4%
International Business Machines Corp. - Debs.
6.50% due 01/15/28 .............................. 3,470 3,665
Computer Software and Services - 0.4%
PSINet, Inc.
11.50% due 11/01/08 ............................. 1,795 1,858
Verio, Inc. - Sr. Notes 144A (a)
11.25% due 12/01/08 ............................. 1,895 1,914
----------
3,772
Consumer - Miscellaneous - 0.4%
CSC Holdings, Inc. - Sr. Notes
7.25% due 07/15/08 .............................. 2,470 2,536
Globe Manufacturing Corp. - 144A (a)
10.00% due 08/01/08 ............................. 1,210 1,095
-----------
3,631
Cosmetics and Personal Care Products - 0.2%
Revlon Consumer Products, Inc. - Sr. Notes
144A (a)
9.00% due 11/01/06 .............................. 1,935 1,916
Diversified Operations - 0.4%
Harrahs Operating Co., Inc.
7.875% due 12/15/05 ............................. 1,280 1,286
Tenneco, Inc.
10.075% due 02/01/01 ............................ 2,000 2,161
----------
3,447
Electric Power - 8.7%
AES Corp.
10.25% due 07/15/06 ............................. 3,113 3,354
AES Corp. - Sub. Notes
8.375% due 08/15/07 ............................. 1,925 1,935
Avon Energy Partners Holdings - Notes
144A (a)
6.46% due 03/04/08 .............................. 1,560 1,576
Beaver Valley Funding Corp. - Debs.
9.00% due 06/01/17 .............................. 2,825 3,205
BVPS II Funding Corp.
8.89% due 06/01/17 .............................. 2,464 2,886
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 .............................. 4,015 4,486
44
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Electric Power - Continued
Call-Net Enterprises, Inc.
8.00% due 08/15/08 .............................. $ 1,520 $ 1,471
Calpine Corp. - Sr. Notes
10.50% due 05/15/06 ............................. 1,920 2,102
Chugach Electric Assoc., Inc. - 1st Mtge.
8.08% due 03/15/02 .............................. 2,230 2,301
Cleveland Electric Illuminating Co. - 1st
Mtge.
9.50% due 05/15/05 .............................. 5,775 6,254
CMS Energy Corp. - Sr. Notes
8.125% due 05/15/02 ............................. 2,650 2,730
Connecticut Light & Power Co.
7.75% due 06/01/02 .............................. 1,090 1,131
Connecticut Light & Power Co. - Notes
144A (a)
8.59% due 06/05/03 .............................. 1,310 1,354
Long Island Lighting Co. - Debs.
8.20% due 03/15/23 .............................. 3,235 3,591
Midland Cogeneration Venture
10.33% due 07/23/02 ............................. 3,394 3,598
Monterrey Power SA DE CV - 144A (a)
9.625% due 11/15/09 ............................. 720 554
New Century Energies, Inc. - 1st Mtge.
9.875% due 07/01/20 ............................. 4,500 4,916
New Century Energies, Inc. - 1st Mtge.
6.875% due 12/01/99 ............................. 3,500 3,550
Niagara Mohawk Power Corp.
7.75% due 10/01/08 .............................. 1,535 1,670
North Atlantic Energy Corp. - 1st Mtge.
9.05% due 06/01/02 .............................. 2,506 2,575
Puget Sound Energy Capital Trust
8.231% due 06/01/27 ............................. 1,705 1,811
Quest Diagnostic, Inc.
10.75% due 12/15/06 ............................. 1,537 1,706
System Energy Resources, Inc. - 1st Mtge.
7.71% due 08/01/01 .............................. 2,590 2,635
Texas New Mexico Power Co. - 1st Mtge.
9.25% due 09/15/00 .............................. 8,000 8,447
UtiliCorp United, Inc.
8.20% due 01/15/07 .............................. 5,000 5,677
Waterford 3 Funding - Entergy
8.09% due 01/02/17 .............................. 3,213 3,406
----------
78,921
Electronic Products and Services - 0.3%
Motorola, Inc. - Debs.
6.50% due 11/25/28 .............................. 2,600 2,629
Energy - Alternative Source - 0.3%
CalEnergy Co., Inc. - Sr. Notes
9.50% due 09/15/06 .............................. 2,320 2,575
Financial Services - 7.9%
American Express Credit Corp.
8.625% due 05/15/22 ............................. 6,000 6,509
American Express Credit Corp. - Debs.
8.50% due 06/15/99 .............................. 6,000 6,079
Associates Corp. of North America - Sr. Notes
6.25% due 11/01/08 .............................. 1,020 1,052
Bank of New York Institution Capital -
144A (a)
7.78% due 12/01/26 .............................. 2,515 2,712
Barclays North America Capital Corp. - Debs.
9.75% due 05/15/21 .............................. 4,650 5,225
Chrysler Financial Co. LLC
5.69% due 11/15/01 .............................. 2,610 2,631
CIT Group, Inc. - Notes
5.50% due 10/15/01 .............................. 3,160 3,143
Commercial Credit Group, Inc.
6.00% due 04/15/00 .............................. 7,000 7,052
10.00% due 05/01/99 ............................. 5,000 5,068
Constitution Capital Trust I - 144A (a)
9.15% due 04/15/27 .............................. 1,815 2,063
Fairfax Financial Holdings - Notes
8.30% due 04/15/26 .............................. 2,960 3,185
Finova Capital Corp. - Notes
6.25% due 11/01/02 .............................. 2,375 2,381
Green Tree Financial Corp.
8.30% due 06/15/26 .............................. 2,170 2,361
Liberty Property, Ltd.
6.60% due 06/05/02 .............................. 1,675 1,616
Structured Assets Securities Corp. - Ser.
1993-C AIB
6.60% due 12/25/24 .............................. 1,853 1,845
Sun Canada Financial Co.
6.625% due 12/15/07 ............................. 3,345 3,487
Texaco Capital, Inc.
8.625% due 06/30/10 ............................. 10,000 12,393
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 06/30/06 ............................. 2,780 3,022
----------
71,824
Food, Beverage and Tobacco - 0.8%
Agrilink Foods, Inc. - Sr. Sub. Notes 144A (a)
11.875% due 11/01/08 ............................ 910 928
RJR Nabisco, Inc.
7.625% due 09/15/03 ............................. 2,120 2,071
8.625% due 12/01/02 ............................. 1,660 1,690
Seagram (Joseph) E & Sons, Inc.
7.60% due 12/15/28 .............................. 2,605 2,631
----------
7,320
Foreign - 1.0%
Hydro-Quebec - Debs.
9.40% due 02/01/21 .............................. 610 826
Hydro-Quebec - Debs. Ser. FU
11.75% due 02/01/12 ............................. 5,000 7,539
Hydro-Quebec - Debs. Ser. IF
7.375% due 02/01/03 ............................. 1,000 1,064
----------
9,429
45
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Foreign Governmental - 1.3%
Nova Scotia
8.75% due 04/01/22 .............................. $ 3,000 $ 3,931
Province of Manitoba
9.00% due 12/15/00 .............................. 3,000 3,206
9.25% due 04/01/20 .............................. 2,000 2,747
Province of Saskatchewan
9.375% due 12/15/20 ............................. 1,500 2,072
Republic of Brazil
4.50% due 04/15/14 ..............................
Republic of Venezuela
6.812% due 12/18/07 ............................. ---------
11,956
Health Care Products - 0.3%
Sola International, Inc. - Notes
6.875% due 03/15/08 ............................. 1,970 1,871
Watson Pharmaceuticals, Inc. - Sr. Notes
7.125% due 05/15/08 ............................. 900 899
---------
2,770
Health Care Services - 0.7%
Genesis Health Ventures, Inc. - Sr. Sub. Notes
144A (a)
9.875% due 01/15/09 ............................. 1,185 1,143
Integrated Health Services, Inc. - Sr. Sub. .....
Debs ...........................................
5.75% due 01/01/01 .............................. 2,040 1,831
Integrated Health Services, Inc. - Sr. Sub. .....
Notes
9.25% due 01/15/08 .............................. 1,080 1,004
Tenet Healthcare Corp. ..........................
8.625% due 01/15/07 ............................. 845 879
Tenet Healthcare Corp. - Sr. Notes
8.625% due 12/01/03 ............................. 1,655 1,727
---------
6,584
Insurance - 2.7%
Conseco, Inc. - Notes
6.80% due 06/15/05 .............................. 2,370 2,230
Equitable Life Assurance Society USA -
144A (a)
6.95% due 12/01/05 .............................. 2,750 2,909
Liberty Mutual Insurance Co. - Notes 144A (a)
8.20% due 05/04/07 .............................. 4,630 5,257
7.875% due 10/15/26 ............................. 1,835 2,023
Mass. Mutual Life Insurance Co. - Notes
144A (a)
7.625% due 11/15/23 ............................. 4,090 4,523
NAC Re Corp. ....................................
8.00% due 06/15/99 .............................. 1,560 1,575
New York Life Insurance Co. - Sr. Notes
7.50% due 12/15/23 .............................. 5,970 6,019
----------
24,536
Leisure and Recreation - 1.0%
Circus Circus Enterprises, Inc. - Debs ..........
7.00% due 11/15/36 .............................. 1,160 1,075
Circus Circus Enterprises, Inc. - Sr. Sub. ......
Notes
9.25% due 12/01/05 .............................. 710 733
SFX Entertainment, Inc. - Sr. Sub. Notes
144A (a)
9.125% due 12/01/08 ............................. 2,570 2,544
Sun International Hotels, Ltd. ..................
8.625% due 12/15/07 ............................. 1,178 1,202
9.00% due 03/15/07 .............................. 1,100 1,133
Trump Holdings & Funding
15.50% due 06/15/05 ............................. 2,325 2,348
----------
9,035
Media - Publishing - 0.1%
Garden State Newspapers, Inc. - Sr. Sub Notes
8.75% due 10/01/09 .............................. 1,277 1,277
Media - TV / Radio - 2.8%
Adelphia Communications Corp. - Sr. Notes
8.125% due 07/15/03 ............................. 1,270 1,298
9.25% due 10/01/02 .............................. 2,460 2,608
Capstar Broadcasting, Inc. - Sr. Sub. Notes
10.75% due 05/15/06 ............................. 1,368 1,505
Continental Cablevision - Sr. Notes
8.30% due 05/15/06 .............................. 2,165 2,403
News America Holdings, Inc. - Debs
8.25% due 08/10/18 .............................. 2,636 2,991
Rogers Cablesystems - Notes
9.625% due 08/01/02 ............................. 1,385 1,489
10.00% due 03/15/05 ............................. 3,030 3,393
Time Warner, Inc. ...............................
9.125% due 01/15/13 ............................. 2,493 3,157
Time Warner, Inc. - Notes
7.75% due 06/15/05 .............................. 1,645 1,824
TKR Cable, Inc. .................................
10.50% due 10/30/07 ............................. 4,132 4,505
----------
25,173
Metal Product and Fabrication - 0.2%
Yanacocha Receivables - Pass thru Certs .........
144A (a)
8.40% due 06/15/04 .............................. 1,767 1,754
Metals and Mining - 0.2%
Golden Northwest Aluminum - 1st Mortgage 144A
(a)
12.00% due 12/15/06 ............................. 1,420 1,427
Municipals - 1.3%
Atlanta, GA - Gen. Oblig. Bond
5.00% due 12/01/20 .............................. 1,460 1,449
Harris County - Houston Texas Sports Authority
Special Revenue
5.00% due 11/15/28 .............................. 1,500 1,470
Massachusetts State Water Authority
5.00% due 08/01/24 .............................. 1,695 1,671
New Hampshire State
7.70% due 07/01/12 .............................. 3,000 3,247
46
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Municipals - Continued
New York, NY City Municipal Water Finance
Authority
5.125% due 06/15/21 ............................. $ 1,045 $ 1,055
San Jose California Redevelopment Agency Tax
Allocation
5.00% due 08/01/26 .............................. 2,605 2,593
----------
11,485
Natural Gas Distribution - 1.3%
Camuzzi Gas - Bonds
9.25% due 12/15/01 .............................. 1,911 1,861
Michigan Consolidated Gas Co. - 1st Mtge ........
5.75% due 05/01/01 .............................. 10,000 10,059
----------
11,920
Oil - Equipment and Services - 0.4%
Humpuss Funding Corp. - 144A (a)
7.72% due 12/15/09 .............................. 2,131 1,418
Petroleum-Geo Services ASA
6.625% due 03/30/08 ............................. 2,410 2,353
----------
3,771
Oil and Natural Gas Exploration and Production - 1.7%
Coastal Corp. SA
8.75% due 05/15/99 .............................. 7,250 7,325
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 09/15/09 ............................ 3,000 3,747
Occidental Petroleum Corp. - Sr. Notes
7.375% due 11/15/08 ............................. 1,735 1,781
Petroleos Mexicanos - 144A (a)
9.375% due 12/02/08 ............................. 1,055 1,039
R&B Falcon Corp. - Sr. Notes 144A (a)
9.50% due 12/15/08 .............................. 1,565 1,563
----------
15,455
Paper and Forest Products - 0.6%
Fort James Corp.
6.50% due 09/15/02 .............................. 2,120 2,160
S.D. Warren Co.
12.00% due 12/15/04 ............................. 2,640 2,878
----------
5,038
Personal and Commercial Lending - 6.4%
Beneficial Corp. - Notes
9.60% due 07/19/00 .............................. 4,000 4,225
CS First Boston Mortgage Securities Corp. -
Ser. 1998-C1 A1A
6.26% due 12/17/07 .............................. 3,075 3,137
Deutsche Mortgage & Asset Receiving Corp. -
Ser. 1998-C1
6.861% due 03/15/08 ............................. 2,170 2,192
EQCC Home Equity Loan Trust
6.57% due 02/15/29 .............................. 2,120 2,166
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 ............................. 3,185 3,238
General Motors Acceptance Corp. - Notes
6.375% due 12/01/01 ............................. 3,165 3,239
GMAC Commercial Mortgage Securities, Inc.
6.566% due 11/15/07 ............................. 3,385 3,508
6.853% due 09/15/06 ............................. 7,325 7,510
Household Finance Corp. - Notes
5.875% due 11/01/02 ............................. 3,955 3,981
Midland Funding Corp. II
11.75% due 07/23/05 ............................. 1,150 1,340
Money Store Home Equity Trust - Ser. 1997-C1
DAF7
6.485% due 12/15/28 ............................. 4,060 4,123
Residential Accredit Loans, Inc. - Ser.
1997-QS4 A3
7.25% due 05/25/27 .............................. 3,335 3,354
UCFC Home Equity Loan
7.18% due 02/15/25 .............................. 1,115 1,154
UCFC Home Equity Loan - Ser. 1996-A1 A5
6.50% due 04/15/16 .............................. 7,652 7,776
UCFC Home Equity Loan - Ser. 1997-A1 A8
7.22% due 06/15/28 .............................. 6,910 7,236
---------
58,179
Real Estate Investment Trust - 1.6%
American Health Prop., Inc. - Notes
7.50% due 01/15/07 .............................. 1,350 1,292
Amresco Residential Securities - Mtge. Loan
6.51% due 08/25/27 .............................. 7,885 7,678
IMC Home Equity Loan Trust - Ser. 1998-1 A4
6.60% due 03/20/25 .............................. 3,280 3,343
TriNet Corp. Realty Trust, Inc.
7.30% due 05/15/01 .............................. 2,070 2,087
---------
14,400
Real Estate Operations - 0.6%
HMH Properties, Inc.
7.875% due 08/01/05 ............................. 2,480 2,424
HMH Properties, Inc. - Sr. Notes
8.45% due 12/01/08 .............................. 1,680 1,680
Security Capital Group, Inc. - Notes
7.75% due 11/15/03 .............................. 1,610 1,610
----------
5,714
Retail - Department Stores - 0.3%
Fred Meyer, Inc.
7.45% due 03/01/08 .............................. 2,770 2,976
Retail - Food - 1.2%
McDonald's Corp. - Debs.
7.375% due 07/15/33 ............................. 5,000 5,209
Safeway, Inc. - Notes
5.875% due 11/15/01 ............................. 1,430 1,434
The Great Atlantic & Pacific Tea Company, Inc.
- Notes
7.75% due 04/15/07 .............................. 2,655 2,590
47
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Retail - Food - Continued
The Kroger Co. - Sr. Notes
8.15% due 07/15/06 .............................. $ 1,350 $ 1,525
----------
10,758
Shoe and Apparel Manufacturing - 0.7%
Tropical Sportswear International Corp. .........
11.00% due 06/15/08 ............................. 1,730 1,821
Unifi, Inc. .....................................
6.50% due 02/01/08 .............................. 2,525 2,501
WestPoint Stevens, Inc. - Sr. Notes
7.875% due 06/15/05 ............................. 2,145 2,172
----------
6,494
Steel - 0.1%
Bayou Steel Corp. ...............................
9.50% due 05/15/08 .............................. 550 517
Telecommunication Equipment - 0.1%
Axia, Inc. ......................................
10.75% due 07/15/08 ............................. 915 926
Telecommunication Services - 2.0%
Global Crossing Holdings, Ltd. ..................
9.625% due 05/15/08 ............................. 1,610 1,706
Groupe Videotron ltee - Sr. Notes
10.625% due 02/15/05 ............................ 4,155 4,460
Intermedia Communications, Inc. - Sr. Notes
Ser. B
8.50% due 01/15/08 .............................. 330 315
8.60% due 06/01/08 .............................. 1,075 1,021
IXC Communications, Inc. - Sr. Sub Notes
9.00% due 04/15/08 .............................. 1,460 1,462
McLeodUSA, Inc. - Sr. Notes 144A (a)
9.50% due 11/01/08 .............................. 1,780 1,896
Nextel Communications, Inc. - Sr. Discount
Notes
1.00% due 08/15/04 .............................. 3,066 2,959
NTL, Inc. - Sr. Notes
11.50% due 10/01/08 ............................. 2,820 3,074
Qwest Communications International, Inc. - Sr ...
Notes
7.25% due 11/01/08 .............................. 1,040 1,063
----------
17,956
Telephone - 4.3%
Chesapeake & Potomac Telephone Co. - Debs
6.05% due 05/15/03 .............................. 6,460 6,647
GTE Corp. - Debs ................................
8.75% due 11/01/21 .............................. 3,000 3,923
GTE North, Inc. - Debs ..........................
5.65% due 11/15/08 .............................. 1,620 1,638
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 ............................. 3,595 3,655
Metromedia Fiber Network, Inc. - Sr. Notes
144A (a)
10.00% due 11/15/08 ............................. 1,890 1,942
MetroNet Communications Corp. ...................
12.00% due 08/15/07 ............................. 1,770 1,925
Michigan Bell Telephone Co. .....................
7.85% due 01/15/22 .............................. 5,000 5,920
New Jersey Bell Telephone Co. ...................
8.00% due 06/01/22 .............................. 4,000 4,896
NEXTLINK Communications, Inc. - Sr. Notes 144A
(a)
10.75% due 11/15/08 ............................. 1,780 1,816
Sprint Capital Corp. ............................
6.875% due 11/15/28 ............................. 2,565 2,663
Sprint Corp. ....................................
8.125% due 07/15/02 ............................. 1,000 1,090
U.S. West Capital Funding, Inc. .................
6.875% due 07/15/28 ............................. 2,600 2,777
----------
38,892
Transportation Services - 2.9%
America West Airlines, Inc. .....................
6.93% due 01/02/08 .............................. 2,075 2,060
Continental Airlines - Pass thru Certs ..........
7.206% due 06/30/04 ............................. 3,341 3,410
Continental Airlines, Inc. - Notes
8.00% due 12/15/05 .............................. 2,265 2,285
Erac USA Finance Co. - 144A (a)
6.625% due 02/15/05 ............................. 3,345 3,261
Fine Air Services, Inc. .........................
9.875% due 06/01/08 ............................. 2,090 1,881
Northwest Airlines Corp. ........................
8.375% due 03/15/04 ............................. 2,575 2,720
Northwest Airlines Corp. - Ser. 1996-1
8.97% due 01/02/15 .............................. 224 241
NWA Trust
9.25% due 06/21/14 .............................. 2,413 2,741
U.S. Air, Inc. ..................................
11.20% due 03/19/05 ............................. 1,320 1,445
Union Pacific Corp. - Notes
9.65% due 06/01/00 .............................. 5,000 5,248
Wisconsin Central Transportation Corp. ..........
6.625% due 04/15/08 ............................. 1,360 1,381
----------
26,673
U.S. Government Agencies - 11.2%
Federal Home Loan Mortgage Corp. ................
6.00% due 10/15/08 .............................. 3,345 3,366
6.00% due 06/15/11 .............................. 10,000 10,075
6.50% due 12/15/23 .............................. 2,725 2,763
Federal National Mortgage Assoc .................
6.50% due 12/01/28 .............................. 8,623 8,679
6.50% due 11/01/28 .............................. 11,849 11,927
6.94% due 01/25/22 .............................. 1,568 1,659
7.00% due 09/01/10 .............................. 6,922 7,069
7.385% due 03/25/21 ............................. 1,359 1,454
Government National Mortgage Assoc ..............
6.50% due 02/15/28 .............................. 4,347 4,390
6.50% due 12/15/28 .............................. 8,593 8,679
48
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Government Agencies - Continued
7.00% due 09/15/25 .............................. $ 3,104 $ 3,175
7.00% due 01/15/26 .............................. 8,139 8,327
7.00% due 08/15/28 .............................. 7,826 8,007
7.50% due 08/15/26 .............................. 1,278 1,318
7.50% due 07/15/27 .............................. 2,526 2,604
7.50% due 09/15/28 .............................. 24 25
8.00% due 02/15/25 .............................. 901 936
8.00% due 05/15/25 .............................. 524 544
8.00% due 06/15/25 .............................. 1,162 1,209
8.00% due 09/15/25 .............................. 1,653 1,718
8.00% due 10/15/25 .............................. 1,031 1,072
8.00% due 01/15/26 .............................. 583 606
8.00% due 01/15/27 .............................. 1,812 1,883
8.00% due 08/15/27 .............................. 6,224 6,469
8.50% due 09/15/21 .............................. 1,035 1,103
9.00% due 05/15/21 .............................. 997 1,071
9.00% due 08/15/21 .............................. 873 938
9.50% due 06/15/16 .............................. 653 701
----------
101,767
U.S. Governmental - 21.0%
U.S. Treasury - Bonds
7.125% due 02/15/23 ............................. 55,712 68,656
8.875% due 08/15/17 ............................. 31,694 44,644
U.S. Treasury - Notes
5.75% due 08/15/03 .............................. 15,285 15,961
7.00% due 07/15/06 .............................. 23,154 26,363
7.50% due 05/15/02 .............................. 20,900 22,693
7.50% due 02/15/05 .............................. 7,946 9,098
8.00% due 05/15/01 .............................. 2,694 2,893
----------
190,308
----------
TOTAL PUBLICLY-TRADED BONDS- .. 96.0% 870,713
PREFERRED STOCK - 0.2%
Health Care Products - 0.2%
Fresenius Medical Capital Trust II .............. 1,740 1,749
WARRANTS - 0.0%
Telephone - 0.0%
MetroNet Communications Corp. - CW07 144A (a)
expires 08/15/07 (Cost $58) .................... 2 119
SHORT-TERM INVESTMENTS - 2.1%
Investment in joint trading account (Note B)
6.101% due 01/04/99 .............................. 19,066 19,069
---------- ----------
TOTAL INVESTMENTS- .... 98.3% 891,650
Cash and Receivables, less payables- .... 1.7% 15,471
---------- ----------
NET ASSETS- .... 100.0% $ 907,121
========== ==========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1998, securities aggregated $62,969 or
6.0% of net assets of the Portfolio.
See notes to financial statements.
49
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 2.9%
Telefonica de Argentina SA - ADR (UTIT) .......... 4,000 $ 112
YPF Sociedad Anonima - ADR (OILX) ................ 3,700 103
----------
215
Brazil - 15.2%
Centrais Electricas Brasileiras S,A. -
ADR (UTIE) ....................................... 25,900 223
Companhia Energetica de Minas Gerias - ADR (UTIE) 6,700 128
Companhia Vale do Rio Doce - ADR (META) .......... 2,100 27
Petroleo Brasileiro S. A. - ADR (OILX) ........... 5,500 62
Telecomunicacoes Brasileiras S.A. (UTIT) ......... 9,250 672
----------
1,112
Cayman Islands - 0.6%
New World Infrastructure, Ltd. (CONS) ............ 27,000 40
Chili - 2.6%
Compania de Telecomunicaciones de Chile SA (UTIT) 3,600 74
Enersis SA - ADR (UTIE) .......................... 2,500 65
Sociedad Quimica y Minera de Chile SA - ADR (CHEM) 1,600 54
----------
193
China - 0.6%
Shanghai Industrial Holdings, Ltd. (DIOP) ........ 22,000 44
Egypt - 2.1%
Egypt Mobile Phone (TELS) ........................ 25,000 152
Greece - 7.7%
Commercial Bank of Greece (BANK) ................. 3,000 295
Hellenic Telecommunication Organization SA (UTIT) 10,000 266
----------
561
Hong Kong - 0.6%
China Telecom (Hong Kong), Ltd. -
ADR (TELS) ..................................... 1,300 45
India - 6.7%
BSES, Ltd. (UTIE) ................................ 9,000 90
Hindalco Industries, Ltd. (META) ................. 5,100 59
ITC, Ltd. - GDR * (FOOD) ......................... 5,900 131
State Bank of India (BANK) ....................... 7,600 63
Videsh Sanchar Nigam, Ltd. (TELS) ................ 11,700 145
----------
488
Israel - 4.5%
Bank Leumi Le-Israel (UTIE) ...................... 132,800 187
ECI Telecommunications, Ltd. (MEDI) .............. 3,900 139
----------
326
Mexico - 4.6%
Corporacion Interamericana de
Entretenimiento SA (LEIS) ...................... 25,400 69
Fomento Economico Mexicano, S.A. de C.V. -
ADR * (FOOD) ................................... 2,000 53
Grupo Iusacell S.A. - ADR * (TELS) ............... 2,100 15
Grupo Radio Centro S.A. de C.V. -
ADR (MEDI) ..................................... 7,500 41
Telefonos de Mexico SA - ADR (UTIT) .............. 3,200 156
----------
334
Philippines - 2.1%
Bank of the Philippine Islands (BANK) ............ 40,000 85
Philippine Long District Telephone Co.
(UTIT) ......................................... 2,700 70
----------
155
Poland - 1.1%
Prokom Software SA (SOFT) ........................ 2,050 79
Portugal - 5.5%
Brisa-Auto Estradas de Portugal, S.A. (MEDI) ..... 4,400 259
Sonae Investimento-Sociedade Gestora de Part
Sociais. SA (RETS) ............................. 3,000 146
----------
405
Russia - 0.2%
Irkutskenergo - ADR (UTIE) ....................... 7,700 16
South Africa - 13.0%
Anglo American Investment Trust Ltd.
(FUND) ......................................... 5,000 58
AngloGold, Ltd. (OILE) ........................... 5,400 210
B.O.E Corp., Ltd. - N Shares (FUND) .............. 21
Barlow, Ltd. (DIOP) .............................. 56,208 216
Liberty Holdings, Ltd. (INSU) .................... 5,300 185
Liberty Life Association of Africa, Ltd.
(INSU) ......................................... 10,000 138
Molope Foods, Ltd. (FOOD) ........................ 160,000 141
----------
948
South Korea - 5.5%
Hanjin Heavy Industries (CONS) ................... 24,830 190
Pohang Iron & Steel Co., Ltd. (STEE) ............. 2,100 112
Sindo Ricoh (COMM) ............................... 2,000 72
Youngone Corp. (APPA) ............................ 1,000 27
----------
401
Soviet Union - 0.3%
LUKoil Holding - ADR (OILX) ...................... 1,500 23
Taiwan - 3.7%
Standard Foods Taiwan, Ltd. (FOOD) ............... 6,300 53
Synnex Technology International Corp.
(COMP) ......................................... 6,368 113
Yageo Corp. (ETRN) ............................... 16,380 106
----------
272
50
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Thailand - 3.9%
BEC World Public Co., Ltd. (MEDI) ................ 16,000 $ 88
Industrial Finance Corp. of Thailand Ltd.
(FINL) ........................................... 205,000 85
Krung Thai Public Co., Ltd. (BANK) ............... 100,000 54
PTT Exploration and Production Public Co.,
Ltd. (OILX) ...................................... 8,500 60
----------
287
Turkey - 1.4%
Haci Omer Sabanci Holding AG (FUND) .............. 1,775,000 27
Migros Turk T.A.S. (RETF) ........................ 30,000 30
Yapi ve Kredi Bankasi A.S. (BANK) ................ 3,968,000 46
----------
103
United Kingdom - 2.2%
Al-Ahram Beverage Co. S. A. E - GDR
(FOOD) ........................................... 5,600 162
United States - 6.2%
Ceske Radiokomunikace - GDR (MEDI) ............... 6,560 212
Mahanagar Telephone Nigam Ltd. (TELS) ............ 5,000 43
Taiwan Semiconductor Manufacturing Co., Ltd. -
ADR (FUND) ...................................... 8,337 118
Yanzhou Coal Mining Co., Ltd. - ADR
(META) ........................................... 10,400 79
----------
452
----------
TOTAL COMMON STOCK- 93.2% 6,813
PREFERRED STOCK - 1.5%
South Korea - 1.5%
Samsung Electronics (ETRN) ....................... 3,420 113
WARRANTS - 1.1%
Philippines - 1.1%
Jollibee Foods, Corp.
expires 03/24/03 (Cost $77) ...................... 175,000 81
Par
Value
(000 's)
SHORT-TERM INVESTMENTS - 4.0%
Investment in joint trading account (Note B)
6.101% due 01/04/99 .............................. $ 289 289
------- -------
TOTAL INVESTMENTS- 99.8% 7,296
Cash and Receivables, less payables- ............. 0.2% 14
------- -------
NET ASSETS- 100.0% $ 7,310
======= =======
* Non-income producing security.
ADR-American Depository Receipt
GDR-Global Depository Receipt
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Telephone ................................ UTIT $1,350 19.3%
Media - TV / Radio ....................... MEDI 738 10.5%
Electric Power ........................... UTIE 708 10.1%
Banks .................................... BANK 543 7.7%
Food, Beverage and Tobacco ............... FOOD 541 7.7%
Telecommunication Services ............... TELS 399 5.7%
Insurance ................................ INSU 323 4.6%
Diversified Operations ................... DIOP 260 3.7%
Oil and Natural Gas Exploration
and Production .......................... OILX 249 3.6%
Construction ............................. CONS 230 3.3%
Electronic Products and
Services ................................ ETRN 219 3.1%
Oil - Equipment and Services ............. OILE 210 3.0%
Brokerage and Investment
Management .............................. FUND 204 2.9%
Metals and Mining ........................ META 164 2.3%
Retail - Department Stores ............... RETS 146 2.1%
Steel .................................... STEE 113 1.6%
Computer Equipment ....................... COMP 113 1.6%
Retail - Food ............................ RETF 111 1.6%
Financial Services ....................... FINL 85 1.3%
Computer Software and
Services ................................ SOFT 79 1.1%
Commercial Services ...................... COMM 72 1.0%
Leisure and Recreation ................... LEIS 69 1.0%
Chemicals ................................ CHEM 54 0.8%
Shoe and Apparel
Manufacturing ........................... APPA 27 0.4%
-------- -----
$ 7,007 100.0%
======== =====
51
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.5%
Amcor, Ltd. (CONT) .............................. 26,400 $ 113
Brambles Industries, Ltd. (DIOP) ................ 7,200 175
Broken Hill Proprietary Co., Ltd. (DIOP) ........ 62,100 457
Coca Cola Amatil (FOOD) ......................... 23,200 86
Coles Myer, Ltd. (RETS) ......................... 33,600 176
CSR, Ltd. (CONS) ................................ 52,000 127
Foster's Brewing Group, Ltd. (FOOD) ............. 70,100 190
Lend Lease Corp. (FINL) ......................... 17,600 237
National Australia Bank, Ltd. (BANK) ............ 35,300 532
News Corp., Ltd. (MEDI) ......................... 52,800 349
Normandy Mining, Ltd. * (PMET) .................. 119,400 111
North, Ltd. (META) .............................. 59,900 98
Orica, Ltd. (DIOP) .............................. 19,600 102
Pacific Dunlop, Ltd. (DIOP) ..................... 59,000 95
Pioneer International, Ltd. (CONS) .............. 41,900 89
Rio Tinto, Ltd. (PMET) .......................... 15,400 183
Santos, Ltd. (OILX) ............................. 38,000 102
Telstra Corp., Ltd. (TELS) ...................... 140,100 655
Westpac Banking Corp., Ltd. (BANK) .............. 51,800 347
WMC, Ltd. (DIOP) ................................ 55,500 167
-----------
4,391
Austria - 1.3%
Austrian Airlines (TRAN) ........................ 3,150 113
Bank Austria AG (BANK) .......................... 9,700 493
BBAG Oesterreichische Brau Beteiligungs AG
(FOOD) ........................................ 1,650 94
Bohler-Uddeholm AG (STEE) ....................... 1,500 70
EA-Generali AG (INSU) ........................... 650 160
Flughafen Wien AG (TRAN) ........................ 2,900 142
Mayr-Melnhof Karton Ag (PAPR) ................... 1,800 84
Oesterreichische Elektrizitaetswirtschafts
AG (UTIE) ...................................... 3,200 489
OMV AG (OILX) ................................... 3,000 283
RHI AG (DIOP) ................................... 2,050 54
VA Technologie AG (ENGI) ........................ 1,700 147
Wienerberger Baustoffindustrie AG (CONS) ........ 900 179
-----------
2,308
Belgium - 2.3%
Barco N.V. (DIOP) ............................... 559 157
Bekaert N.V. (METP) ............................. 139 69
Cimenteries CBR Cementbedrijven (CONS) .......... 1,574 155
Colruyt NV (RETF) ............................... 187 156
Compagnie Maritime Belge SA (TRAN) .............. 1,921 85
D' Ieteren SA (AUTO) ............................ 290 159
Delhaize "Le Lion" SA (RETF) .................... 1,955 172
Electrabel SA (UTIE) ............................ 1,136 496
Fortis AG (INSU) ................................ 1,888 680
Fortis AG (INSU) ................................ 1,043 5
Fortis AG - Strip WPR * (INSU) .................. 1,043
Groupe Bruxelles Lambert SA (FUND) .............. 1,094 221
KBC Bancassurance Holding NV (BANK) ............. 3,540 279
N.V. Union Miniere SA * (META) .................. 1,461 55
Petrofina SA (OILX) ............................. 802 365
Solvay SA (FINL) ................................ 2,115 158
Tractebel (UTIE) ................................ 2,341 452
UCB SA (HEAL) ................................... 48 294
-----------
3,958
Denmark - 1.1%
A/S Dampskibsselskabet Svendborg - Cl. B
(TRAN) ....................................... 24 243
Danisco A/S (FOOD) .............................. 2,450 133
Den Danske Bank (BANK) .......................... 2,250 302
Iss International Service System A/S - Cl. B
(COMM) ....................................... 1,650 107
Novo-Nordisk A/S - Cl. B (HEAL) ................. 2,450 324
Tele Danmark A/S (TELS) ......................... 4,150 560
Unidanmark A/S - Cl. A (BANK) ................... 2,300 208
-----------
1,877
Finland - 1.3%
Kemira Oyj (CHEM) ............................... 9,700 69
Kesko Oyj (RETS) ................................ 6,100 91
Merita, Ltd. - Cl. A (BANK) ..................... 25,400 160
Nokia Oyj - A Shares (TELE) ..................... 9,500 1,155
Nokia Oyj - Cl. A (TELE) ........................ 3,000 365
Outokumpu Oyj (META) ............................ 7,500 69
Sampo Insurance Co. plc (INSU) .................. 2,500 95
Stora Enso Oyj - A Shares (PAPR) ................ 3,530 31
Stora Enso Oyj - R Shares * (PAPR) .............. 6,550 59
UPM-Kymmene Corp. * (PAPR) ...................... 7,600 212
-----------
2,306
France - 10.5%
Accor SA (LEIS) ................................. 1,223 265
Air Liquide (CHEM) .............................. 2,083 382
Alcatel Alsthom (TELE) .......................... 4,190 513
AXA SA (INSU) ................................... 8,781 1,272
Banque Nationale de Paris (BANK) ................ 5,646 465
Banque Paribas (BANK) ........................... 4,500 391
Bouygues SA (CONS) .............................. 847 175
Canal Plus (MEDI) ............................... 992 271
Cap Gemini SA (COMM) ............................ 1,622 260
Carrefour SA (RETF) ............................. 979 739
Casino Guichard-Perrachon SA (RETF) ............. 2,184 227
Club Mediterranee SA (LEIS) ..................... 1,000 90
Compagnie de St. Gobain (CONS) .................. 2,541 359
Elf Aquitaine (OILX) ............................ 7,355 850
Eridania Beghin-Say SA (FOOD) ................... 758 131
Essilor International SA (HEAL) ................. 358 141
France Telecom * (TELS) ......................... 21,203 1,684
Group Danone * (FOOD) ........................... 1,846 528
Imetal SA (CONS) ................................ 950 95
L'Oreal (HNBA) .................................. 1,608 1,162
Lafarge SA (CONS) ............................... 2,526 240
Lagardere S.C.A. (DIOP) ......................... 4,108 175
52
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
France - Continued
Legrand SA (ELEQ) ............................... 658 $ 174
Michelin (PART) ................................. 4,386 175
Moet Hennessy-Louis Vuitton (FOOD) .............. 2,300 455
Pernod Ricard (FOOD) ............................ 1,763 114
Pinault-Printemps-Redoute SA (RETS) ............. 2,958 565
Promodes (RETF) ................................. 525 382
PSA Peugeot (AUTO) .............................. 1,457 225
Rhone-Poulenc SA (BANK) ......................... 9,549 491
Sagem SA (ETRN) ................................. 200 132
Sanofi SA (HEAL) ................................ 2,906 478
Schneider SA (MACH) ............................. 3,911 237
SEITA (FOOD) .................................... 2,750 172
Sidel SA (MACH) ................................. 1,650 140
Societe BIC SA (COMM) ........................... 2,209 122
Societe Eurafrance SA (FINL) .................... 233 154
Societe Generale de Paris (BANK) ................ 2,732 442
Suez Lyonnaise des Eaux (DIOP) .................. 3,413 701
Thomson CFS (ETRN) .............................. 3,440 148
Total SA - Cl. B (OILX) ......................... 6,826 691
Unibail (REAL) .................................. 700 102
Usinor SA (STEE) ................................ 8,601 95
Valeo SA (PART) ................................. 2,676 211
Vivendi (DIOP) .................................. 4,950 1,284
-----------
18,105
Germany - 13.8%
Adidas-Salomon AG (APPA) ........................ 1,920 209
Allianz AG - Reg. (INSU) ........................ 8,380 3,072
AMB Aachener & Muenchener Beteiligungs AG
(INSU) ........................................ 1,730 254
Axa Colonia Konzern AG (INSU) ................... 1,220 138
BASF AG (CHEM) .................................. 21,860 834
Bayer AG (CHEM) ................................. 24,980 1,043
Bayerische Vereinsbank AG (BANK) ................ 18,072 1,415
Beiersdorf AG (HNBA) ............................ 4,120 284
Bilfinger & Berger Bau AG (CONS) ................ 2,960 76
Buderus AG (DIOP) ............................... 260 95
Continental AG (PART) ........................... 5,950 164
DaimlerChrysler AG * (AUTO) ..................... 17,205 1,698
Degussa AG (CHEM) ............................... 2,660 146
Deutsche Bank AG (BANK) ......................... 18,150 1,068
Deutsche Telekom AG * (TELS) .................... 74,290 2,443
Douglas Holding AG (HNBA) ....................... 1,890 115
Dresdner Bank AG (BANK) ......................... 18,460 775
Heidelberg Zement (CONS) ........................ 2,730 213
Hochtief AG (CONS) .............................. 3,810 149
Karstadt AG (RETS) .............................. 420 219
Linde AG (ENGI) ................................. 330 203
Lufthansa AG (TRAN) ............................. 14,730 325
M.A.N. AG (DIOP) ................................ 440 129
Mannesmann AG (MACH) ............................ 1,020 117
Merck KGaA (HEAL) ............................... 7,360 331
Metro AG * (RETS) ............................... 7,950 634
Muenchener Rueckversicherungs-Gesellschaft AG
- REG (INSU) ................................... 2,760 1,336
Preussag AG (DIOP) .............................. 640 289
RWE AG (OILX) ................................... 12,500 684
SAP AG (SOFT) ................................... 2,120 916
Schering AG (HEAL) .............................. 2,530 318
SGL Carbon AG (CHEM) ............................ 1,190 71
Siemens AG (DIOP) ............................... 18,860 1,217
Thyssen AG (DIOP) ............................... 1,510 280
VEBA AG (DIOP) .................................. 18,130 1,085
Viag AG (DIOP) .................................. 1,020 598
Volkswagen AG (AUTO) ............................ 11,100 886
-----------
23,829
Hong Kong - 1.5%
Cheung Kong (Holdings), Ltd. (READ) ............. 52,000 374
CLP Holdings, Ltd. (UTIE) ....................... 37,500 187
Hang Seng Bank, Ltd. (BANK) ..................... 35,000 313
Hong Kong Telecommunications, Ltd. (TELS) ....... 209,800 367
Hutchison Whampoa, Ltd. (COMM) .................. 58,000 410
New World Development Co., Ltd. (READ) .......... 70,000 176
Sun Hung Kai Properties, Ltd. (REIT) ............ 59,000 430
Swire Pacific, Ltd. (DIOP) ...................... 31,500 141
Wharf (Holdings), Ltd. (DIOP) ................... 113,000 165
-----------
2,563
Ireland - 0.7%
Allied Irish Banks plc (BANK) ................... 26,800 480
CRH plc (CONS) .................................. 13,300 229
Greencore Group plc (FOOD) ...................... 26,000 120
Irish Life plc (INSU) ........................... 15,700 148
Jefferson Smurfit Group plc (CONT) .............. 41,800 75
Kerry Group plc (FOOD) .......................... 8,400 114
-----------
1,166
Italy - 9.6%
Assicurazioni Generali (INSU) ................... 44,000 1,836
Banca Commerciale Italiana (BANK) ............... 84,800 585
Banca Intesa SpA (BANK) ......................... 74,800 449
Banca Intesa SpA - RNC (BANK) ................... 37,400 114
Banca Populare di Milano (BANK) ................. 18,100 164
Benetton Group SpA (APPA) ....................... 113,100 228
Bulgari SpA (RETS) .............................. 8,900 53
Burgo (Cartiere) SpA (PAPR) ..................... 13,700 88
Credito Italiano SpA (BANK) ..................... 131,600 780
Edison SpA (ENER) ............................... 32,600 384
ENI SpA (OILS) .................................. 356,800 2,330
Fiat SpA (AUTO) ................................. 170,400 591
Fiat SpA - RNC (AUTO) ........................... 37,200 74
Istituto Bancario San Paolo di Torino (BANK) .... 71,618 1,265
Istituto Nazionale delle Assicurazioni (INSU) ... 177,600 469
Italgas SpA (UTIG) .............................. 40,300 218
La Rinascente SpA (CONS) ........................ 10,500 108
Marzotto & Figli SpA (APPA) ..................... 7,500 83
Mediaset SpA (MEDI) ............................. 56,200 455
Mediobanca SpA (FUND) ........................... 17,000 236
Mondadori (Arnoldo) Editore SpA (MEDP) .......... 9,400 124
53
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Italy - Continued
Montedison SpA * (CHEM) ......................... 239,500 $ 318
Olivetti SpA (COMM) ............................. 138,400 481
Parmalat Finanziaria SpA (FOOD) ................. 77,600 148
Pirelli SpA (DIOP) .............................. 81,100 260
Riunione Adriatica di Sicorta SpA (INSU) ........ 18,650 270
Riunione Adriatica di Sicorta SpA - RNC
(INSU) ....................................... 9,600 96
Sirti SpA (TELE) ................................ 16,600 100
Societa Assicuratrice Industriale (INSU) ........ 8,600 103
Telecom Italia Mobile (TIM) SpA (TELS) .......... 305,100 2,251
Telecom Italia Mobile SpA - RNC (TELS) .......... 68,200 321
Telecom Italia SpA * (TELS) ..................... 161,500 1,377
Telecom Italia SpA - RNC (TELS) ................. 37,300 235
Unione Immobiliare SpA * (REAL) ................. 177,600 93
-----------
16,687
Japan - 29.7%
77 Bank, Ltd. (BANK) ............................ 18,000 180
Acom Co., Ltd. (LEND) ........................... 5,900 379
Advantest (ETRN) ................................ 3,700 234
Ajinomoto Co., Inc. (FOOD) ...................... 23,000 244
Alps Electric Co. (ETRN) ........................ 9,000 165
Amada Co., Ltd (MACH) ........................... 20,000 97
Aoyama Trading Co. (RETS) ....................... 3,500 98
Asahi Bank Ltd. (BANK) .......................... 53,000 194
Asahi Breweries Ltd. (FOOD) ..................... 13,000 191
Asahi Chemical Industry Co., Ltd. (CHEM) ........ 44,000 210
Asahi Glass Co., Ltd. (APPL) .................... 48,000 298
Bank of Tokyo-Mitsubishi (BANK) ................. 159,000 1,646
Bridgestone Corp. (PART) ........................ 30,000 681
Canon, Inc. (COMM) .............................. 29,000 619
Casio Computer Co. (ETRN) ....................... 13,000 96
Citizen Watch Co., Ltd. (RETS) .................. 15,000 90
Credit Saison Co., Ltd. (FINL) .................. 8,000 197
CSK Corp. (SOFT) ................................ 4,700 108
Dai Nippon Printng Co., Ltd. (COMM) ............. 28,000 446
Daiichi Pharmaceutical Co., Ltd. (HEAL) ......... 10,000 169
Daikin Industries, Ltd. (CONS) .................. 15,000 149
Dainippon Ink & Chemicals, Inc. (CHEM) .......... 40,000 109
Daiwa House Industry Co., Ltd. (HOUS) ........... 20,000 213
Daiwa Securities Co., Ltd. (FUND) ............... 37,000 126
Denso Corp. (ETRN) .............................. 34,000 629
East Japan Railway Co. (TRAN) ................... 145 809
Ebara Corp. (MACH) .............................. 18,000 155
Eisai Co. Ltd. (HEAL) ........................... 11,000 214
Fanuc, Ltd. (ELEQ) .............................. 9,400 322
Fuji Bank, Ltd. (BANK) .......................... 69,000 254
Fuji Photo Film (LEIS) .......................... 18,000 669
Fujikura (ELEQ) ................................. 11,000 59
Fujitsu, Ltd. (ELEQ) ............................ 64,000 852
Furukawa Electric Co. (TELE) .................... 10,000 34
Hankyu Corp. (TRAN) ............................. 23,000 101
Hirose Electric Co., Ltd. (ETRN) ................ 2,400 168
Hitachi Zosen Corp. (CONS) ...................... 52,000 72
Hitachi, Ltd. (ETRN) ............................ 118,000 731
Honda Motor Co. (AUTO) .......................... 34,000 1,116
Hoya Corp. (ETRN) ............................... 5,000 243
Industrial Bank of Japan (BANK) ................. 63,000 290
Ito-Yokado Co., Ltd. (RETS) ..................... 15,000 1,048
Itochu Corp. (DIOP) ............................. 48,000 93
Japan Airlines Co., Ltd. (TRAN) ................. 71,000 187
Japan Energy Corp. (OILX) ....................... 68,000 64
Joyo Bank, Ltd. (BANK) .......................... 29,000 113
JUSCO Co., Ltd. * (RETS) ........................ 13,000 263
Kajima Corp. (CONS) ............................. 35,000 91
Kaneka Corp. (CHEM) ............................. 19,000 142
Kansai Electric Power Co., Inc. (UTIE) .......... 20,100 440
KAO Corp. (HNBA) ................................ 16,000 361
Kawasaki Heavy Industry, Ltd. (DIOP) ............ 47,000 110
Kawasaki Steel Corp. (STEE) ..................... 117,000 175
Keihin Electric Express Railway Co., Ltd.
(TRAN) ....................................... 51,000 160
Kinden Corp. (ENGI) ............................. 13,000 198
Kinki Nippon Railway (TRAN) ..................... 43,000 230
Kirin Brewery Co. (FOOD) ........................ 32,000 408
Kokuyo Co. (COMM) ............................... 7,000 94
Komatsu, Ltd. (MACH) ............................ 44,000 231
Komori Corp. (MACH) ............................. 6,000 126
Konica Corp. (LEIS) ............................. 17,000 77
Kubota Corp. (MACH) ............................. 68,000 203
Kuraray Co., Ltd. (APPA) ........................ 11,000 121
Kurita Water Industries, Ltd. (POLL) ............ 8,000 117
Kyocera Corp. (ETRN) ............................ 6,700 354
Makita Corp. (CNSU) ............................. 9,000 100
Marubeni Corp. (DIOP) ........................... 62,000 106
Marui Co., Ltd. (RETS) .......................... 12,000 231
Matsushita Electric Industrial Co. (ETRN) ....... 70,000 1,238
Minebea Co., Ltd. (CHEM) ........................ 13,000 149
Mitsubishi Chemical Corp. (CHEM) ................ 61,000 128
Mitsubishi Corp. (DIOP) ......................... 55,000 316
Mitsubishi Electric Corp. (ETRN) ................ 88,000 276
Mitsubishi Estate Co., Ltd. (REAL) .............. 49,000 439
Mitsubishi Heavy Industries, Ltd. (MACH) ........ 127,000 494
Mitsubishi Logistcs Corp. (TRAN) ................ 7,000 82
Mitsubishi Materials Corp. (PMET) ............... 39,000 66
Mitsubishi Rayon Co., Ltd. (APPA) ............... 27,000 74
Mitsubishi Trust & Banking Corp. (BANK) ......... 40,000 257
Mitsui & Co., Ltd. (DIOP) ....................... 60,000 335
Mitsui Fudosan (REAL) ........................... 34,000 257
Mitsui Marine & Fire Insurance Co., Ltd. (INSU) . 30,000 158
Mitsui Mining & Smelting Co., Ltd. (META) ....... 23,000 113
Mitsui Osk Lines (TRAN) ......................... 65,000 105
Mitsukoshi, Ltd. (RETS) ......................... 9,000 24
Mori Seiki Co., Ltd. (MACH) ..................... 7,000 79
Murata Manufacturing Co., Ltd. (ETRN) ........... 9,000 373
Mycal Corp. (RETS) .............................. 16,000 95
Nagoya Railroad Co. (TRAN) ...................... 41,000 149
54
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Japan - Continued
NAMCO, Ltd. (LEIS) .............................. 4,300 $ 86
Nankai Electric Rail Co., Ltd. (TRAN) ........... 24,000 121
NEC Corp. (COMP) ................................ 57,000 524
NGK Insulators (PART) ........................... 21,000 271
NGK Spark Plug Co. (PART) ....................... 16,000 163
Nichido Fire & Marine Insurance Co., Ltd.
(INSU) ....................................... 19,000 93
Nikon Corp. (LEIS) .............................. 13,000 126
Nippon Comsys Corp. (ENGI) ...................... 6,000 82
Nippon Express Co., Ltd. (TRAN) ................. 46,000 259
Nippon Fire & Marine Insurance Co., Ltd. ........
(INSU) ....................................... 27,000 99
Nippon Oil Co., Ltd. (OILX) ..................... 63,000 220
Nippon Paper Industries Co. (PAPR) .............. 42,000 191
Nippon Steel Co. (STEE) ......................... 248,000 450
Nippon Telegraph & Telephone Corp. (UTIT) ....... 446 3,440
Nippon Yusen Kabushiki Kaisha (TRAN) ........... 54,000 171
Nissan Motor Acceptance Corp. (FINL) ............ 64,000 196
Nitto Denko Corp. (ETRN) ........................ 10,000 166
Nkk Corp. (STEE) ................................ 136,000 93
Nomura Securities Co., Ltd. (FUND) .............. 61,000 531
NSK, Ltd. (META) ................................ 19,000 71
NTN Corp. (METP) ................................ 23,000 74
Obayashi Corp. (CONS) ........................... 22,000 105
Odakyu Electric Railway (TRAN) .................. 44,000 154
Oji Paper Co. (PAPR) ............................ 43,000 223
Olympus Optical Co. (LEIS) ...................... 14,000 161
Omron Corp. (ETRN) .............................. 11,000 151
Onward Kashiyama Co., Ltd. (APPA) ............... 10,000 134
Orix Corp. (FINL) ............................... 2,800 209
Osaka Gas Co. (UTIG) ............................ 81,000 279
Pioneer Electronic Corp. (ETRN) ................. 3,000 50
Rohm Co., Ltd. (ETRN) ........................... 4,000 364
Sakura Bank, Ltd. (BANK) ........................ 125,000 286
Sankyo Co., Ltd. (HEAL) ......................... 14,000 306
Sanyo Electric Co. (ETRN) ....................... 75,000 232
Secom Co. (ETRN) ................................ 4,000 331
Sega Enterprises (CNSU) ......................... 5,100 113
Sekisui Chemical Co. (CHEM) ..................... 26,000 175
Sekisui House, Ltd. (CONS) ...................... 31,000 328
Sharp Corp. (ETRN) .............................. 33,000 297
SHIMANO, Inc. (LEIS) ............................ 6,000 155
Shimizu Corp. (CONS) ............................ 29,000 97
Shin-Etsu Chemical Co. (CHEM) ................... 9,000 217
Shionogi & Co., Ltd. (HEAL) ..................... 14,000 102
Shiseido Co., Ltd. (CHEM) ....................... 15,000 193
Shizuoka Bank, Ltd. (BANK) ...................... 19,000 234
SMC Corp. (MACH) ................................ 2,900 231
Sony Corp. (ETRN) ............................... 12,000 874
Sumitomo Bank (BANK) ............................ 103,000 1,057
Sumitomo Chemical Co. (CHEM) .................... 59,000 230
Sumitomo Corp. (DIOP) ........................... 47,000 229
Sumitomo Electric Industries (TELE) ............. 30,000 337
Sumitomo Heavy Industry (MACH) .................. 31,000 65
Sumitomo Marine & Fire Insurance Co., Ltd.
(INSU) ........................................ 26,000 165
Sumitomo Metal Industries (STEE) ................ 102,000 116
Sumitomo Metal Mining Co. (PMET) ................ 27,000 88
Taisho Pharmaceutical Co., Ltd. (HEAL) .......... 10,000 275
Takashimaya Co. (RETS) .......................... 12,000 101
Takeda Chemical Industries (HEAL) ............... 29,000 1,116
Teijin, Ltd. (APPA) ............................. 41,000 151
Tobu Railway Co., Ltd. (TRAN) ................... 57,000 166
Toho Co., Ltd. (MEDI) ........................... 1,300 178
Tohoku Electric Power (UTIE) .................... 13,000 230
Toksi Bank Ltd. (BANK) .......................... 53,000 250
Tokio Marine & Fire Insurance Co. (INSU) ........ 53,000 633
Tokyo Broadcasting (MEDI) ....................... 9,000 101
Tokyo Dome Corp. (LEIS) ......................... 7,000 37
Tokyo Electric Power (UTIE) ..................... 43,300 1,069
Tokyo Electron, Ltd. (ETRN) ..................... 7,000 266
Tokyo Gas Co. (OILX) ............................ 86,000 226
Tokyu Corp. (TRAN) .............................. 26,000 68
Toppan Printing Co. (CNSU) ...................... 29,000 354
Toray Industries, Inc. (APPA) ................... 50,000 261
Tostem Corp. (CONS) ............................. 11,000 218
Toto, Ltd. (APPL) ............................... 21,000 168
Toyo Seikan Kaisha, Ltd. (CONT) ................. 8,000 136
Toyoda Automatic Loom Works, Ltd. (MACH) ........ 11,000 195
Toyota Motor Corp. (AUTO) ....................... 134,000 3,639
Uni-Charm Corp. (PAPR) .......................... 3,000 141
UNY Co., Ltd. (RETS) ............................ 8,000 146
Wacoal Corp. (APPA) ............................. 12,000 154
Yamaguchi Bank (BANK) ........................... 11,000 104
Yamaha Corp. (LEIS) ............................. 6,000 62
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) ...... 10,000 322
Yamato Transport Co., Ltd. (TRAN) ............... 17,000 238
Yokogawa Electric (ETRN) ........................ 9,000 45
---------
51,472
Malaysia - 0.6%
Magnum Corp. Berhad (LEIS) ...................... 383,000 115
Malayan Banking Berhad (BANK) ................... 136,200 193
Malaysia International Shipping Berhad (TRAN) ... 62,000 77
RHB Capital Berhad (BANK) ....................... 262,000 102
Sime Darby Berhad (FINL) ........................ 169,000 136
Telekom Malaysia Berhad (TELS) .................. 108,000 199
Tenaga Nasional Berhad (UTIE) ................... 113,000 162
-----------
984
Netherlands - 2.9%
ABN Amro Holding NV (BANK) ...................... 19,500 410
Akzo Nobel Nv (CHEM) ............................ 3,850 175
Elsevier NV (MEDP) .............................. 10,500 147
Heineken NV (FOOD) .............................. 4,375 263
ING Groep NV (BANK) ............................. 10,900 664
55
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Netherlands - Continued
Koninklijke Ahold NV (RETF) ...................... 7,500 $ 277
KPN NV (UTIT) .................................... 7,050 353
Philips Electronics NV (ETRN) .................... 4,600 309
Royal Dutch Petroleum Co. (OILS) ................. 24,950 1,242
TNT Post Group NV (TRAN) ......................... 7,050 227
Unilever NV (CNSU) ............................... 7,750 662
Wolters Kluwer NV (MEDP) ......................... 1,100 235
-----------
4,964
New Zealand - 0.4%
Brierley Investments, Ltd. (LEIS) ................ 295,300 67
Carter Holt Harvey, Ltd. (PAPR) .................. 218,900 196
Telecom Corp. of New Zealand (TELS) .............. 98,600 428
-----------
691
Norway - 0.6%
Christiania Bank Og Kreditkasse (BANK) ........... 28,440 99
Den Norske Bank (BANK) ........................... 28,960 100
Dyno Industrier ASA (COMM) ....................... 5,120 76
Kvaerner plc (CONS) .............................. 40 1
Leif Hoegh & Co. ASA (TRAN) ...................... 7,440 87
Norsk Hydro ASA (DIOP) ........................... 9,340 316
Orkla ASA (DIOP) ................................. 7,920 118
Petroleum Geo-Services (OILE) .................... 3,520 45
Storebrand ASA (INSU) ............................ 13,040 99
-----------
941
Portugal - 0.6%
Banco Commercial Portugues, SA (BANK) ............ 6,600 203
Bpi SBPI-SGPS, SA (FUND) ......................... 4,000 136
EDP-Electricidade de Portugal, SA (UTIE) ......... 9,000 198
Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestora de Participacoes Sociais
SA (RETF) ........................................ 2,700 148
Portugal Telecom SA - Reg. (UTIT) ................ 5,600 257
-----------
942
Singapore - 0.4%
City Developments, Ltd. (READ) ................... 62,000 268
Singapore Telecommunications, Ltd. (TELS) ........ 161,000 246
United Overseas Bank, Ltd. (BANK) ................ 33,000 212
-----------
726
Spain - 4.3%
Aguas De Barcelona (FOOD) ........................ 28 2
Autopistas Concesionaria Espanola SA (TRAN) ...... 12,860 213
Banco Bilbao Vizcaya, SA (BANK) .................. 61,300 960
Banco Central Hispanoamericano (BANK) ............ 36,900 437
Banco Santander SA (BANK) ........................ 36,210 718
Corporacion Financiera Alba, SA (TRAN) ........... 1,000 167
Corporacion Mapfre Sa (INSU) ..................... 2,100 57
Dragados & Construcciones, SA (CONS) ............. 2,800 103
Corporacion Bancaria de Espana SA (BANK) ......... 15,300 396
Endesa SA (UTIE) ................................. 28,100 743
Fomento de Construcciones y Contratas SA (INSU) .. 2,300 171
Gas Natural SDG SA (UTIG) ........................ 4,600 500
Iberdrola SA (UTIE) .............................. 27,500 514
Repsol SA (OILX) ................................. 10,000 533
Sociedad General de Aguas de Barcelona SA
(FOOD) ........................................ 2,800 187
Telefonica S.A. (UTIT) ........................... 30,200 1,341
Union Electrica Fenosa, SA (UTIE) ................ 12,200 211
Vallehermoso SA (READ) ........................... 8,700 124
Zardoya Otis SA (MACH) ........................... 4,433 138
-----------
7,515
Sweden - 1.5%
ABB AB - Cl. A (ENGI) ............................ 11,750 125
Astra AB - Cl. B (HEAL) .......................... 19,900 405
Drott AB - B Shares * (REAL) ..................... 3,100 29
Ericsson(Lm) Telephone (TELE) .................... 28,000 665
ForeningsSparbanken AB (BANK) .................... 5,800 150
Hennes & Mauritz AB (RETS) ....................... 3,450 281
NetCom Systems, Inc. - Cl. B (TELS) .............. 32 1
Sandvik AB (MACH) ................................ 4,950 86
Securitas AB - B Shares (COMM) ................... 9,200 143
Skand Enskilda Banken - Cl. A (BANK) ............. 10,200 107
Skandia Forsakrings AB (INSU) .................... 9,500 145
Skanska AB (CONS) ................................ 3,100 86
Svenska Cellulosa AB - Cl. B (PAPR) .............. 4,500 98
Svenska Handelsbankenn (BANK) .................... 3,750 158
Volvo AB (AUTO) .................................. 5,750 132
-----------
2,611
Switzerland - 2.0%
ABB AG * (ENGI) .................................. 100 117
Credit Suisse Group - Reg. (BANK) ................ 1,970 308
Nestle SA (FOOD) ................................. 260 566
Novartis AG * * (HEAL) ........................... 380 747
Roche Holding AG (HEAL) .......................... 10 181
Roche Holding AG (HEAL) .......................... 45 549
Schweizerische Rueckversicherungs-Gesellschaft (INSU) 110 287
UBS AG (BANK) .................................... 1,613 495
Zurich Allied AG (INSU) .......................... 340 252
-----------
3,502
United Kingdom - 9.9%
Abbey National First Capital BV (BANK) ........... 16,000 341
Allied Zurich AG * (INSU) ........................ 18,600 280
Associated British Foods plc (FOOD) .............. 14,600 138
Barclays Bank (BANK) ............................. 18,400 399
Bass plc (FOOD) .................................. 11,100 161
BG plc (OILE) .................................... 46,800 301
BOC Group plc (CHEM) ............................. 9,400 135
Boots Co. plc (RETD) ............................. 12,300 210
British Aerospace plc (AERO) ..................... 20,000 170
56
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
United Kingdom - Continued
British Airways plc (TRAN) ....................... 18,800 $ 129
British American Tobacco plc * (FOOD) ............ 18,600 164
British Land Co. plc (REAL) ...................... 8,700 64
British Petroleum Co. plc (OILX) ................. 64,200 956
British Sky Broadcast plc (MEDI) ................. 21,700 164
British Telecommunications plc (TELS) ............ 72,600 1,099
BTR plc (DIOP) ................................... 43,875 90
Burmah Castrol plc (OILX) ........................ 8,700 124
Cable & Wireless plc (TELS) ...................... 30,600 374
Cadbury Schweppes plc (FOOD) ..................... 13,300 228
Carlton Communications plc (MEDI) ................ 16,300 150
Centrica plc * (UTIG) ............................ 73,000 150
CGU plc (INSU) ................................... 9,300 147
Coca Cola Beverage (FOOD) ........................ 23,200 43
Diageo plc (FOOD) ................................ 44,200 490
EMI Group plc (LEIS) ............................. 14,800 99
General Electric Co. plc (DIOP) .................. 33,200 301
GKN plc (PART) ................................... 10,200 136
Glaxo Wellcome plc (HEAL) ........................ 40,610 1,398
Granada Group plc (DIOP) ......................... 11,700 205
Great Universital Stores plc (RETS) .............. 13,600 143
Guardian Royal Exchange plc (INSU) ............... 20,295 114
HSBC Holdings plc (BANK) ......................... 11,600 320
HSBC Holdings plc (BANK) ......................... 21,600 538
Imperial Chemical Industries plc (CHEM) .......... 9,900 86
J. Sainsbury plc (RETF) .......................... 24,100 195
Kingfisher plc (RETS) ............................ 18,600 201
Ladbroke Group plc (LEIS) ........................ 20,700 83
Land Securities plc (REAL) ....................... 8,400 107
LASMO plc (OILX) ................................. 22,200 37
Legal & General Group plc (INSU) ................. 15,700 205
Lloyds TSB Group plc (BANK) ...................... 63,300 901
LucasVarity plc (PART) ........................... 25,100 84
Marks & Spencer plc (RETS) ....................... 32,300 222
National Grid Group plc (UTIE) ................... 22,500 179
National Power plc (UTIE) ........................ 16,500 142
Pearson plc (MEDP) ............................... 8,100 161
Peninsular & Oriental Steam Navigation Co.
(TRAN) ........................................ 10,300 122
Prudential Corp. (INSU) .......................... 24,400 372
Railtrack Group plc (TRAN) ....................... 7,400 193
Rank Group plc (DIOP) ............................ 16,000 61
Reed International plc (MEDP) .................... 15,400 122
Reuters Group plc (BUSI) ......................... 18,600 196
Rio Tinto plc - Reg. (DIOP) ...................... 12,600 147
Royal & Sun Alliance Insurance Group plc
(INSU) ........................................ 19,300 157
Royal Bank of Scotland Group (BANK) .............. 11,500
188
Safeway plc (RETF) ............................... 19,400 97
Schroders (BANK) ................................. 4,050 74
Scottish & Newcastle plc (FOOD) .................. 12,400 144
Scottish Power plc (UTIE) ........................ 19,000 196
SmithKline Beecham plc (HEAL) .................... 62,500 866
Tesco plc (RETF) ................................. 79,500 231
Unilever (CNSU) .................................. 37,300 420
United Utilities plc (AGRI) ...................... 10,400 144
Vodafone Group plc (TELS) ........................ 38,500 626
Zeneca Group plc (HEAL) .......................... 10,500 457
----------
17,177
----------
TOTAL COMMON STOCK- 97.5% 168,715
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) .......................... 45,400 276
Germany - 0.7%
Dyckerhoff AG (CONS) ............................. 260 72
Friedrich Grohe AG (CONS) ........................ 400 106
RWE AG (OILX) .................................... 5,470 200
SAP AG - Vorzug (SOFT) ........................... 1,490 711
Volkswagen AG (AUTO) ............................. 3,800 189
-----------
1,278
Italy - 0.0%
Fiat SpA (AUTO) ................................ 43,100 83
-----------
TOTAL PREFERRED STOCK- 0.9% 1,637
WARRANTS - 0.0%
France - 0.0%
AXA-CTF de Valeur Garant (INSU)
expires 07/031/01 (Cost $17) ..................... 172 1
RIGHTS - 0.0%
Spain - 0.0%
Telefonica S.A. - Bonus Rights (UTIT)
expires 01/30/99 (Cost $0) ....................... 30,200 27
Par
Value
(000's)
SHORT-TERM INVESTMENTS
Investment in joint trading account (Note B)
6.101% due 01/04/99 .............................. $ 2,104 2,105
U.S. Treasury Bills
4.355% due 03/18/99 # ............................ 300 297
----------
TOTAL SHORT-TERM INVESTMENTS- 1.4% 2,402
---------- ----------
TOTAL INVESTMENTS- 99.8% 172,782
Cash and Receivables, less payables- 0.2% 355
---------- ----------
NET ASSETS- 100.0% $ 173,137
========== ==========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $297
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
57
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C>
Banks ........................................ BANK $24,855 14.6%
Insurance .................................... INSU 13,367 7.8%
Telecommunication Services ................... TELS 12,865 7.6%
Diversified Operations ....................... DIOP 10,051 5.9%
Health Care Products ......................... HEAL 8,994 5.3%
Automobile ................................... AUTO 8,793 5.2%
Electronic Products and Services ............. ETRN 7,872 4.6%
Electric Power ............................... UTIE 5,708 3.4%
Food, Beverage and Tobacco ................... FOOD 5,515 3.2%
Telephone .................................... UTIT 5,391 3.2%
Oil and Natural Gas Exploration
and Production ............................. OILX 5,335 3.1%
Transportation Services ...................... TRAN 5,123 3.0%
Chemicals .................................... CHEM 4,812 2.8%
Retail - Department Stores ................... RETS 4,683 2.7%
Construction ................................. CONS 3,620 2.1%
Oil .......................................... OILS 3,572 2.1%
Telecommunication Equipment .................. TELE 3,169 1.9%
Commercial Services .......................... COMM 2,761 1.6%
Retail - Food ................................ RETF 2,624 1.5%
Machinery .................................... MACH 2,594 1.5%
Leisure and Recreation ....................... LEIS 2,093 1.2%
Media - TV / Radio ........................... MEDI 1,944 1.1%
Cosmetics and Personal Care Products ......... HNBA 1,922 1.1%
Auto and Truck Parts ......................... PART 1,884 1.1%
Computer Software and Services ............... SOFT 1,735 1.0%
Consumer - Miscellaneous ..................... CNSU 1,649 1.0%
Shoe and Apparel Manufacturing ............... APPA 1,414 0.8%
Electrical Equipment ......................... ELEQ 1,407 0.8%
Paper and Forest Products .................... PAPR 1,322 0.8%
Financial Services ........................... FINL 1,288 0.8%
Brokerage and Investment Management .......... FUND 1,251 0.7%
Natural Gas Distribution ..................... UTIG 1,147 0.7%
Real Estate Operations ....................... REAL 1,091 0.7%
Steel ........................................ STEE 999 0.6%
Real Estate Development ...................... READ 943 0.6%
Engineering and Construction ................. ENGI 872 0.5%
Media - Publishing ........................... MEDP 790 0.5%
Computer Equipment ........................... COMP 524 0.3%
Household Appliances / Furnishings ........... APPL 466 0.3%
Precious Metals/Gems/Stones .................. PMET 446 0.3%
Real Estate Investment Trust ................. REIT 430 0.3%
Metals and Mining ............................ META 406 0.2%
Energy - Alternative Source .................. ENER 384 0.2%
Personal and Commercial Lending .............. LEND 379 0.2%
Oil - Equipment and Services ................. OILE 346 0.2%
Containers ................................... CONT 324 0.2%
Housing ...................................... HOUS 213 0.1%
Retail - Drug Stores ......................... RETD 210 0.1%
Business Services ............................ BUSI 196 0.1%
Aerospace and Defense ........................ AERO 170 0.1%
Agricultural Operations ...................... AGRI 144 0.1%
Metal Product and Fabrication ................ METP 143 0.1%
Pollution Control ............................ POLL 117 0.1%
Telephone .................................... UTIT 27 0.0%
-------- -----
$170,380 100.0%
======== =====
</TABLE>
58
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.7%
YPF Sociedad Anonima - ADR (OILX) ............... 3,700 $ 103
Australia - 3.3%
Cable & Wireless Optus, Ltd. * (TELS) ........... 105,135 221
Foster's Brewing Group, Ltd. (FOOD) ............. 32,000 87
Normandy Mining, Ltd. * (PMET) .................. 55,900 52
WMC, Ltd. (DIOP) ................................ 14,400 43
Woodside Petroleum, Ltd. (OILX) ................. 23,300 104
-------
507
Austria - 0.4%
Flughafen Wien AG (TRAN) ........................ 1,300 64
Brazil - 1.1%
Aracruz Celulose SA - ADR (PAPR) ................ 5,200 42
Companhia Cervejaria Brahma - ADR (FOOD) ........ 6,400 60
Companhia Vale do Rio Doce - ADR (META) ......... 5,400 69
-------
171
Canada - 3.3%
Barrick Gold Corp. (PMET) ....................... 6,500 127
BCE, Inc. (TELS) ................................ 2,100 80
Canadian Hunter Exploration, Ltd. * (OILX) ...... 600 4
Canadian National Railway Co. (TRAN) ............ 2,300 119
Canadian Pacific, Ltd. (TRAN) ................... 4,300 81
Molson Cos., Ltd. (FOOD) ........................ 4,200 60
Nexfor Inc. * (DIOP) ............................ 1,046 4
Noranda, Inc. (META) ............................ 2,400 24
-------
499
France - 4.2%
AGF (Assurances Generales de France) (INSU) ..... 3,643 217
AXA SA (INSU) ................................... 1,374 199
Canal Plus (MEDI) ............................... 839 229
-------
645
Germany - 13.8%
Allianz AG - Reg. (INSU) ........................ 711 261
BASF AG (CHEM) .................................. 4,201 160
Bayer AG (CHEM) ................................. 5,363 224
Bayerische Vereinsbank AG (BANK) ................ 2,374 186
Deutsche Telekom AG * (TELS) .................... 2,872 95
Deutsche Telekom AG - ADR (TELS) ................ 2,700 88
Heidelberger Druckmaschinen AG (MACH) ........... 540 40
Hoechst AG (INSU) ............................... 5,050 209
Muenchener Rueckversicherungs-Gesellschaft AG
(INSU) ......................................... 177 58
Muenchener Rueckversicherungs-Gesellschaft AG
- REG (INSU) ................................... 575 278
Schering AG (HEAL) .............................. 1,263 159
VEBA AG (DIOP) .................................. 3,739 224
Viag AG (DIOP) .................................. 229 134
-------
2,116
Ghana - 0.2%
Ashanti Goldfields Co., Ltd. (PMET) ............. 2,700 25
Hong Kong - 1.9%
Cheung Kong (Holdings), Ltd. (READ) ............. 6,000 43
Citic Pacific, Ltd. (DIOP) ...................... 43,000 93
Hutchison Whampoa, Ltd. (COMM) .................. 16,000 113
New World Development Co., Ltd. (READ) .......... 15,000 38
-------
287
Italy - 1.0%
Istituto Nazionale delle Assicurazioni (INSU) ... 48,600 128
Unione Immobiliare SpA * (REAL) ................. 48,600 26
-------
154
Japan - 4.8%
Daiwa Securities Co., Ltd. (FUND) ............... 10,000 34
Matsushita Electric Industrial Co. (ETRN) ....... 7,000 124
Minebea Co., Ltd. (CHEM) ........................ 9,000 103
Nichido Fire & Marine Insurance Co., Ltd. (INSU). 2,000 10
Nichiei Co., Ltd. (LEND) ........................ 1,000 79
Ono Pharmaceutical Co., Ltd. (HEAL) ............. 1,000 31
Sharp Corp. (ETRN) .............................. 14,000 126
Shohkoh Fund & Co., Ltd. (FINL) ................. 300 97
Sumitomo Metal Mining Co. (PMET) ................ 12,000 39
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) ...... 3,000 97
-------
740
Netherlands - 0.9%
Aegon NV (INSU) ................................. 1,180 145
Portugal - 0.3%
EDP-Electricidade de Portugal, SA (UTIE) ........ 1,750 39
South Africa - 0.6%
Anglo American Platinum Corp., Ltd. (PMET) ...... 5,100 70
Sasol, Ltd. (OILX) .............................. 4,838 18
-------
88
Sweden - 0.4%
Aga AB (CHEM) ................................... 4,500 59
Switzerland - 7.1%
Ciba Specialty Chemicals AG * (CHEM) ............ 1,449 121
Clariant AG (CHEM) .............................. 141 66
Nestle SA (FOOD) ................................ 98 213
Novartis AG * * (HEAL) .......................... 160 315
Schweizerische Rueckversicherungs-Gesellschaft
(INSU) ......................................... 65 170
Swisscom AG - Reg. * (UTIT) ..................... 478 200
-------
1,085
United Kingdom - 13.4%
BOC Group plc (CHEM) ............................ 9,210 132
Carlton Communications plc (MEDI) ............... 15,616 144
Enterprise Oil plc (OILX) ....................... 10,390 51
General Electric Co. plc (DIOP) ................. 27,608 250
59
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
LASMO plc (OILX) ................................ 32,606 $ 54
National Grid Group plc (UTIE) .................. 22,756 181
Railtrack Group plc (TRAN) ...................... 6,372 166
Reuters Group plc (BUSI) ........................ 19,902 210
Rio Tinto plc - Reg. (DIOP) ..................... 12,381 144
Shell Transport & Trading Co. plc (OILX) ........ 28,603 176
SmithKline Beecham plc (HEAL) ................... 13,328 185
Unilever (CNSU) ................................. 25,213 283
United Assurance Group plc (OILE) ............... 7,922 72
-------
2,048
United States - 34.0%
American Greetings Corp. - Cl. A (CNSU) ......... 2,200 90
Atlantic Richfield Co. (OILX) ................... 1,900 124
Biogen, Inc. * (HEAS) ........................... 1,000 83
Cinergy Corp. (UTIE) ............................ 6,200 213
Conoco, Inc. - Cl. A * (OILX) ................... 3,900 81
Duke Energy Co. (UTIE) .......................... 2,600 167
Electronic Data Systems Corp. (SOFT) ............ 5,500 276
Enron Corp. (UTIG) .............................. 3,500 200
Equity Residential Properties Trust (REIT) ...... 3,600 146
EXEL, Ltd. - Cl. A (INSU) ....................... 3,100 232
Homestake Mining Co. (PMET) ..................... 13,900 128
Immunex Corp. * (HEAL) .......................... 1,100 138
International Business Machines Corp. (COMP) .... 2,200 406
Liberty Media Group * (MEDI) .................... 1,508 69
Lockheed Martin Corp. (AERO) .................... 1,700 144
MBIA, Inc. (INSU) ............................... 3,100 203
Motorola, Inc. (ETRN) ........................... 2,500 153
Newmont Mining Corp. (PMET) ..................... 5,600 101
Northrop Grumman Corp. (AERO) ................... 2,100 154
Parametric Technology Co. * (SOFT) .............. 4,600 75
Peco Energy Co. (UTIE) .......................... 6,000 250
PennzEnergy Co. (OILX) .......................... 2,000 33
Pennzoil-Quaker State Co. * (OILX) .............. 2,000 30
Phillips Petroleum Co. (OILX) ................... 1,400 60
Praxair, Inc. (CHEM) ............................ 2,800 99
Prologis Trust (REIT) ........................... 1,900 39
SABRE Group Holdings, Inc. * (LEIS) ............. 3,000 134
Sterling Commerce, Inc. * (ETRN) ................ 2,900 131
Stillwater Mining Co. * (PMET) .................. 4,100 168
Sun Microsystems, Inc. * (SOFT) ................. 1,300 111
Tele-Communications, Inc. - Cl. A * (MEDI) ...... 3,700 205
U.S. Airways Group, Inc. * (TRAN) ............... 2,400 125
UNUM Corp. (INSU) ............................... 4,400 257
USEC, Inc. (CONS) ............................... 16,900 234
Williams Cos., Inc. (UTIG) ...................... 4,300 134
-------
5,193
-------
TOTAL COMMON STOCK- 91.4% 13,968
PREFERRED STOCK
Germany - 2.5%
RWE AG (OILX) ................................... 6,000 219
SAP AG - Vorzug (SOFT) .......................... 340 162
-------
381
-------
TOTAL PREFERRED STOCK- 2.5 381
WARRANTS - 0.0%
Germany - 0.0%
Muenchener Ruckversich-CW02
expires 06/02/02 (Cost $0) ..................... 25 1
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 6.0%
Investment in repurchase agreement with State
Street Bank & Trust Co. dated 12/31/98, 4.85%
due 1/4/99 (Secured by $895 U.S. Treasury
Notes, 6.25% due 8/31/00, Market Value $918).... $ 914 914
-------- -------
TOTAL INVESTMENTS- 99.9% 15,264
Cash and Receivables, less payables- 0.1% 17
-------- -------
NET ASSETS- 100.0% $15,281
======== =======
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
60
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Insurance ........................... INSU $ 2,369 16.5%
Oil and Natural Gas
Exploration and Production ........ OILX 1,057 7.4%
Chemicals ........................... CHEM 964 6.7%
Health Care Products ................ HEAL 924 6.4%
Diversified Operations .............. DIOP 892 6.2%
Electric Power ...................... UTIE 849 5.9%
Precious Metals/Gems/Stones ......... PMET 710 4.9%
Media - TV / Radio .................. MEDI 647 4.5%
Computer Software and
Services .......................... SOFT 625 4.4%
Transportation Services ............. TRAN 555 3.9%
Electronic Products and
Services .......................... ETRN 533 3.7%
Telecommunication Services .......... TELS 483 3.4%
Food, Beverage and Tobacco .......... FOOD 421 2.9%
Computer Equipment .................. COMP 406 2.8%
Consumer - Miscellaneous ............ CNSU 374 2.6%
Natural Gas Distribution ............ UTIG 334 2.3%
Aerospace and Defense ............... AERO 298 2.1%
Construction ........................ CONS 234 1.6%
Business Services ................... BUSI 210 1.5%
Telephone ........................... UTIT 200 1.4%
Banks ............................... BANK 186 1.3%
Real Estate Investment Trust ........ REIT 185 1.3%
Leisure and Recreation .............. LEIS 134 0.9%
Commercial Services ................. COMM 113 0.8%
Financial Services .................. FINL 97 0.7%
Metals and Mining ................... META 93 0.6%
Health Care Services ................ HEAS 83 0.6%
Real Estate Development ............. READ 81 0.6%
Personal and Commercial
Lending ........................... LEND 80 0.6%
Oil - Equipment and Services ........ OILE 72 0.5%
Paper and Forest Products ........... PAPR 42 0.3%
Machinery ........................... MACH 40 0.3%
Brokerage and Investment
Management .......................... FUND 34 0.2%
Real Estate Operations .............. REAL 25 0.2%
------- -----
$14,350 100.0%
======= =====
61
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 1.3%
CSK Auto Corp. .................................. 17,500 $ 467
O'Reilly Automotive, Inc. * ..................... 10,500 496
----------
963
Automobile - 0.9%
United Rentals, Inc. * .......................... 19,900 659
Banks - 1.1%
Greater Bay Bancorp ............................. 10,800 364
TeleBanc Financial Corp. ........................ 14,400 490
----------
854
Brokerage and Investment Management - 0.9%
Charles River Associates, Inc. .................. 16,800 368
E*TRADE Group, Inc. * ........................... 6,100 285
----------
653
Business Services - 5.1%
First Consulting Group, Inc. .................... 21,100 433
Forrester Research, Inc. * ...................... 14,600 639
Interim Services, Inc. .......................... 21,200 495
Metzler Group, Inc. * ........................... 13,350 650
On Assignment, Inc. * ........................... 15,200 524
ProBusiness Services, Inc. * .................... 12,000 546
Professional Detailing, Inc. .................... 17,600 497
----------
3,784
Commercial Services - 8.8%
Abacus Direct Corp. * ........................... 7,300 332
Boron, LePore & Assocs., Inc. ................... 13,600 469
Carey International, Inc. * ..................... 24,300 425
Consolidated Graphics, Inc. * ................... 5,400 365
Dendrite International, Inc. * .................. 15,700 392
Education Management Corp. * .................... 21,200 501
G & K Services, Inc. ............................ 9,100 485
Lason, Inc. * ................................... 6,600 384
Mail-Well Holdings, Inc. * ...................... 17,600 201
MAXIMUS, Inc. * ................................. 13,300 492
META Group, Inc. * .............................. 21,750 647
Profit Recovery Group International, Inc. * ..... 14,800 554
Steiner Leisure, Ltd. * ......................... 21,800 698
United Road Services, Inc. * .................... 26,100 480
Veritas DGC, Inc. * ............................. 9,600 125
----------
6,550
Computer Equipment - 2.9%
Apex PC Solutions, Inc. * ....................... 14,000 404
National Computer Systems, Inc. * ............... 16,500 611
Network Appliance, Inc. * ....................... 19,000 855
PRI Automation, Inc. * .......................... 12,700 330
----------
2,200
Computer Software and Services - 17.9%
AboveNet Communications, Inc. * ................. 13,300 279
Advent Software, Inc. * ......................... 13,400 631
AnswerThink Consulting Group, Inc. * ............ 20,600 554
Aris Corp. * .................................... 13,000 155
Aspect Development, Inc. * ...................... 15,400 682
Barra, Inc. * ................................... 12,500 295
BindView Development Corp. ...................... 20,400 561
Cognizant Technology Solutions Corp. ............ 24,700 750
Concentric Network Corp. * ...................... 12,900 429
Concur Technologies, Inc. * ..................... 2,300 70
Exchange Applications, Inc. ..................... 23,400 459
Exodus Communications, Inc. * ................... 5,800 373
Fundtech, Ltd. * ................................ 26,700 551
HNC Software, Inc. .............................. 10,900 441
Hyperion Solutions Corp. ........................ 5,960 107
IMRglobal Corp. * ............................... 16,925 498
InfoSpace.com, Inc. * ........................... 1,200 46
International Network Services * ................ 8,700 579
Manhattan Associates, Inc. * .................... 15,800 431
MicroStrategy, Inc. * ........................... 2,700 85
National Instruments Corp. * .................... 11,000 375
Network Event Theater, Inc. * ................... 63,600 823
PSINet, Inc. .................................... 9,900 207
RealNetworks, Inc. * ............................ 8,300 298
SCM Microsystems, Inc. * ........................ 8,900 632
SOFTWORKS, Inc. ................................. 62,600 442
Symantec Corp. * ................................ 14,600 318
Verio, Inc. ..................................... 16,600 371
VeriSign, Inc. .................................. 4,500 266
Visio Corp. * ................................... 9,700 355
Whittman-Hart, Inc. * ........................... 25,100 693
Wind River Systems * ............................ 13,300 625
Xoom, Inc. * .................................... 1,200 40
----------
13,421
Construction - 0.6%
Crossmann Communities, Inc. * ................... 15,100 417
Consumer - Miscellaneous - 1.8%
Carriage Services, Inc. - Cl. A * ............... 18,500 526
Catalina Marketing Corp. * ...................... 7,200 492
Strayer Education, Inc. ......................... 8,250 291
----------
1,309
Containers - 0.3%
Ivex Packaging Corp. * .......................... 9,600 223
Diversified Operations - 1.1%
Waste Connections, Inc. * ....................... 23,600 433
Westinghouse Air Brake Co. ...................... 16,400 401
----------
834
Electrical Equipment - 1.6%
Micrel, Inc. * .................................. 10,600 583
Rambus, Inc. * .................................. 6,100 587
----------
1,170
Electronic Products and Services - 8.2%
Atmi, Inc. * .................................... 23,000 581
Credence Systems Corp. * ........................ 19,500 361
DuPont Photomasks, Inc. * ....................... 9,100 386
62
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electronic Products and Services - Continued
Entrust Technologies, Inc. ...................... 4,900 $ 117
Flextronics International Ltd. .................. 8,600 736
Gentex Corp. * .................................. 22,400 448
Imax Corp. * .................................... 17,900 566
INSpire Insurance Solutions, Inc. * ............. 22,500 413
Level One Communications, Inc. * ................ 18,000 639
MedQuist, Inc. .................................. 15,400 608
Novellus Systems, Inc. * ........................ 10,300 510
PMC-Sierra, Inc. * .............................. 7,700 486
Semtech Corp. * ................................. 8,600 309
----------
6,160
Financial Services - 1.4%
Financial Federal Corp. ......................... 12,700 315
Medallion Financial Corp. ....................... 24,600 352
Rollins Truck Leasing Corp. ..................... 25,300 373
----------
1,040
Food, Beverage and Tobacco - 1.4%
American Italian Pasta Co. * .................... 25,300 667
Beringer Wine Estates Holdings * ................ 8,900 398
----------
1,065
Health Care Products - 6.5%
Alkermes, Inc. * ................................ 19,200 426
Alternative Living Services, Inc. * ............. 12,200 418
Gilead Sciences, Inc. * ......................... 11,200 460
Hanger Orthopedic Group, Inc. ................... 23,100 520
Human Genome Sciences, Inc. * ................... 8,000 284
Inhale Therapeutic Systems, Inc. * .............. 14,200 469
MiniMed, Inc. * ................................. 4,600 482
Neurogen Corp. * ................................ 18,300 320
Perclose, Inc. * ................................ 17,000 563
Pharmacyclics, Inc. * ........................... 15,700 400
Renal Care Group, Inc. * ........................ 16,800 484
----------
4,826
Health Care Services - 4.0%
American Healthcorp, Inc. * ..................... 26,400 259
CareMatrix Corp. * .............................. 12,900 395
Idec Pharmaceuticals Corp. ...................... 10,400 489
IDX Systems Corp. ............................... 9,900 435
IMPATH, Inc. * .................................. 10,800 286
Ocular Sciences, Inc. * ......................... 16,100 431
Province Healthcare Co. * ....................... 4,200 151
Res-Care, Inc. .................................. 21,700 536
----------
2,982
Household Appliances / Furnishings - 1.8%
CompX International, Inc. * ..................... 13,500 356
Ethan Allen Interiors, Inc. ..................... 8,900 365
Furniture Brands International, Inc. * .......... 13,800 376
Select Comfort Corp. * .......................... 8,900 235
----------
1,332
Housing - 0.5%
D.R. Horton, Inc. ............................... 14,400 331
Insurance - 1.1%
Capital Re Corp. ................................ 16,400 329
Executive Risk, Inc. ............................ 9,400 517
----------
846
Leisure and Recreation - 2.8%
Cinar Films, Inc. * ............................. 24,700 627
Family Golf Centers, Inc. * ..................... 19,300 381
Premier Parks, Inc. * ........................... 19,200 581
Travel Services International, Inc. * ........... 16,900 515
----------
2,104
Machinery - 0.6%
Applied Power, Inc. ............................. 12,600 476
Media - Publishing - 1.5%
John Wiley & Sons, Inc. - Cl. A ................. 14,600 705
Petersen Cos, Inc. - Cl. A * .................... 13,100 444
----------
1,149
Media - TV / Radio - 3.4%
Adelphia Communications Corp. - Cl. A ........... 14,700 673
Getty Images, Inc. .............................. 35,900 617
Heftel Broadcasting Corp. * ..................... 6,700 330
Metro Networks, Inc. * .......................... 7,800 332
Pegasus Communications Corp. * .................. 15,200 381
Saga Communications, Inc. - Cl. A * ............. 9,900 203
----------
2,536
Oil - Equipment and Services - 1.3%
Core Laboratories NV * .......................... 19,700 377
Dril Quip, Inc. * ............................... 14,900 264
National-Oilwell, Inc. * ........................ 14,100 158
Newpark Resources, Inc. * ....................... 25,700 175
Tuboscope, Inc. * ............................... 1,700 14
----------
988
Oil and Natural Gas Exploration and Production - 0.8%
Newfield Exploration Co. * ...................... 15,900 332
Pride International, Inc. * ..................... 10,400 73
Stone Energy Corp. * ............................ 7,600 219
----------
624
Pollution Control - 0.8%
Eastern Environmental Services, Inc. * .......... 21,200 629
Retail - Department Stores - 4.5%
99 Cents Only Stores * .......................... 12,125 596
Abercrombie & Fitch Co. * ....................... 6,000 425
Beyond.com, Corp. * ............................. 4,100 85
Buckle, Inc. .................................... 12,800 307
Eagle Hardware & Garden, Inc. * ................. 12,800 416
Hibbett Sporting Goods, Inc. * .................. 15,600 378
Hot Topic, Inc. * ............................... 17,100 220
Linens 'N Things, Inc. * ........................ 12,100 480
63
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - Department Stores - Continued
Noodle Kidoodle, Inc. * ......................... 33,500 $ 318
Stage Stores, Inc. * ............................ 13,800 129
----------
3,354
Retail - Drug Stores - 0.5%
Duane Reade, Inc. * ............................. 10,200 393
Retail - Food - 2.3%
Garden Fresh Restaurant Corp. ................... 24,500 352
P.F. Chang's China Bistro, Inc. * ............... 19,300 439
Whole Foods Market, Inc. * ...................... 9,300 450
Wild Oats Markets, Inc. * ....................... 15,500 488
----------
1,729
Shoe and Apparel Manufacturing - 0.9%
Columbia Sportswear Co. * ....................... 2,400 41
Cutter & Buck, Inc. * ........................... 17,000 633
----------
674
Telecommunication Equipment - 2.2%
Crown Castle International Corp. ................ 30,700 722
L-3 Communications Holdings, Corp. * ............ 1,700 79
Microwave Power Devices, Inc. * ................. 38,800 403
OmniAmerica, Inc. * ............................. 2,000 64
RF Micro Devices, Inc. * ........................ 7,900 366
----------
1,634
Telecommunication Services - 1.1%
Allegiance Telecom, Inc. * ...................... 13,100 159
Transaction Network Services, Inc. * ............ 21,100 423
Winstar Communications, Inc. * .................. 6,800 265
----------
847
Telephone - 2.5%
e.spire Communications, Inc. .................... 39,300 251
Global TeleSystems Group, Inc. * ................ 7,400 413
Metromedia Fiber Network, Inc. - Cl. A * ........ 21,000 703
NEXTLINK Communications, Inc. * ................. 17,900 508
----------
1,875
Transportation Services - 2.0%
Eagle USA Airfreight, Inc. * .................... 20,100 493
Expeditors International of Washington, Inc. .... 12,500 525
Motivepower Industries, Inc. * .................. 15,100 486
----------
1,504
----------
TOTAL COMMON STOCK- 96.4% 72,135
SHORT-TERM INVESTMENTS - 3.6%
Investment in joint repurchase agreement with
Swiss Bank Corp. dated 12/31/98, 4.85% due
1/4/99 (Secured by $106,507 U.S. Treasury
Bonds, 7.5% due 11/15/16, Market Value
$133,134; $29,058 U.S. Treasury Bonds, 11.75%
due 2/15/10, Market Value $40,718) ............... $ 2,704 $ 2,704
---------- ----------
TOTAL INVESTMENTS- 100.0% 74,839
Cash and Receivables, less payables- 0.0% 10
---------- ----------
NET ASSETS- 100.0% $ 74,849
========== ==========
* Non-income producing security.
See notes to financial statements.
64
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.9%
Amcor, Ltd. (CONT) .............................. 3,900 $ 17
Brambles Industries, Ltd. (DIOP) ................ 2,500 61
Broken Hill Proprietary Co., Ltd. (DIOP) ........ 10,700 79
CSR, Ltd. (CONS) ................................ 13,800 34
David Jones, Ltd. (RETS) ........................ 19,500 21
Lend Lease Corp. (FINL) ......................... 3,400 46
National Australia Bank, Ltd. (BANK) ............ 8,000 121
News Corp., Ltd. (MEDI) ......................... 12,000 79
Orica, Ltd. (DIOP) .............................. 3,200 17
Pacific Dunlop, Ltd. (DIOP) ..................... 12,000 19
Qantas Airways, Ltd. (TRAN) ..................... 14,882 30
QBE Insurance Group, Ltd. (INSU) ................ 8,180 34
Rio Tinto, Ltd. (PMET) .......................... 2,400 28
Santos, Ltd. (OILX) ............................. 9,800 26
Telstra Corp., Ltd. (TELS) ...................... 26,500 124
Westpac Banking Corp., Ltd. (BANK) .............. 14,700 98
WMC, Ltd. (DIOP) ................................ 11,000 33
Woolworth's, Ltd. (RETS) ........................ 4,000 14
----------
881
Belgium - 1.6%
Electrabel SA (UTIE) ............................ 420 183
Fortis AG (INSU) ................................ 642 231
Fortis AG - Strip WPR * (INSU) .................. 32
KBC Bancassurance Holding-Strip * (BANK) ........ 30
KBC Bancassurance Holding NV (BANK) ............. 1,013 80
----------
494
Canada - 1.2%
Agrium, Inc. (AGRI) ............................. 1,500 13
Alcan Aluminum, Ltd. (META) ..................... 800 22
Bank of Montreal (BANK) ......................... 600 24
Canadian National Railway Co. (TRAN) ............ 600 31
Canadian Pacific, Ltd. (TRAN) ................... 1,800 34
Extendicare, Inc. (HEAS) ........................ 1,400 8
Hudson's Bay Co. (RETS) ......................... 1,000 13
Imasco, ltd. (DIOP) ............................. 1,000 21
Imperial Oil, Ltd. (OILX) ....................... 1,800 29
Magna International, Inc. (AUTO) ................ 200 13
Newbridge Networks Corp. (TELE) ................. 500 15
NOVA Corp. (CHEM) ............................... 1,048 14
Price REIT, Inc. (REIT) ......................... 200 13
Royal Bank of Canada (BANK) ..................... 700 35
Seagram Co., Ltd. (DIOP) ........................ 300 11
Shaw Communications, Inc. (MEDI) ................ 1,400 34
Transcanada Pipelines, Ltd. (OILE) .............. 1,844 27
Westcoast Energy, Inc. (UTIG) ................... 500 10
----------
367
Denmark - 0.3%
Tele Danmark A/S (TELS) ......................... 600 81
Finland - 1.5%
Merita, Ltd. - Cl. A (BANK) ..................... 11,500 72
Nokia Oyj - A Shares (TELE) ..................... 2,500 304
UPM-Kymmene Corp. * (PAPR) ...................... 3,400 95
----------
471
France - 6.1%
Air Liquide (CHEM) .............................. 610 112
Alcatel Alsthom (TELE) .......................... 928 113
AXA SA (INSU) ................................... 838 121
Banque Nationale de Paris (BANK) ................ 1,118 92
Banque Paribas (BANK) ........................... 611 53
Compagnie de St. Gobain (CONS) .................. 446 63
Dexia France (BANK) ............................. 430 66
Elf Aquitaine (OILX) ............................ 620 72
France Telecom * (TELS) ......................... 1,210 96
Group Danone * (FOOD) ........................... 250 72
Lagardere S.C.A. (DIOP) ......................... 2,665 113
Michelin (PART) ................................. 1,168 47
Pinault-Printemps-Redoute SA (RETS) ............. 300 57
Rhone-Poulenc SA (BANK) ......................... 1,750 90
SEITA (FOOD) .................................... 2,247 141
Societe Generale de Paris (BANK) ................ 465 75
Suez Lyonnaise des Eaux (DIOP) .................. 645 132
Thomson CFS (ETRN) .............................. 1,970 85
Total SA - Cl. B (OILX) ......................... 841 85
Vivendi (DIOP) .................................. 627 163
----------
1,848
Germany - 6.7%
Allianz AG - Reg. (INSU) ........................ 797 292
Bayer AG (CHEM) ................................. 7,050 294
DaimlerChrysler AG * (AUTO) ..................... 2,272 224
Deutsche Bank AG (BANK) ......................... 1,470 87
Deutsche Telekom AG * (TELS) .................... 4,200 138
Dresdner Bank AG (BANK) ......................... 1,950 82
Hoechst AG (INSU) ............................... 2,200 91
Mannesmann AG (MACH) ............................ 1,600 183
SAP AG (SOFT) ................................... 150 65
Siemens AG (DIOP) ............................... 3,450 223
VEBA AG (DIOP) .................................. 4,270 256
Volkswagen AG (AUTO) ............................ 1,170 93
----------
2,028
Ireland - 0.1%
Jefferson Smurfit Group plc (CONT) .............. 10,000 18
Italy - 2.5%
Assicurazioni Generali (INSU) ................... 3,900 163
ENI SpA (OILS) .................................. 34,000 222
Istituto Bancario San Paolo di Torino
(BANK) ........................................ 5,135 91
La Rinascente SpA (CONS) ........................ 9,817 101
Montedison SpA * (CHEM) ......................... 63,620 84
Telecom Italia Mobile (TIM) SpA (TELS) .......... 15,000 111
----------
772
65
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - 5.1%
Amada Co., Ltd (MACH) ........................... 3,000 $ 14
Bridgestone Corp. (PART) ........................ 1,000 23
Canon Sales Co., Inc. (COMM) .................... 100 1
Canon, Inc. (COMM) .............................. 2,000 43
Citizen Watch Co., Ltd. (RETS) .................. 3,000 18
Dai Nippon Printng Co., Ltd. (COMM) ............. 3,000 48
Daiichi Pharmaceutical Co., Ltd. (HEAL) ......... 2,000 34
Daikin Industries, Ltd. (CONS) .................. 3,000 30
Daiwa House Industry Co., Ltd. (HOUS) ........... 1,000 11
Denso Corp. (ETRN) .............................. 2,000 37
Fanuc, Ltd. (ELEQ) .............................. 1,200 41
Fuji Photo Film (LEIS) .......................... 1,000 37
Fujitsu, Ltd. (ELEQ) ............................ 2,000 27
Honda Motor Co. (AUTO) .......................... 1,000 33
Hoya Corp. (ETRN) ............................... 1,000 49
Ito-Yokado Co., Ltd. (RETS) ..................... 1,000 70
Kaneka Corp. (CHEM) ............................. 3,000 22
KAO Corp. (HNBA) ................................ 1,000 23
Kirin Brewery Co. (FOOD) ........................ 3,000 38
Kokuyo Co. (COMM) ............................... 1,000 13
Kuraray Co., Ltd. (APPA) ........................ 4,000 44
Marui Co., Ltd. (RETS) .......................... 2,000 38
Matsushita Electric Industrial Co. (ETRN) ....... 4,000 71
NGK Insulators (PART) ........................... 5,000 64
Nintendo Corp., Ltd. (LEIS) ..................... 500 48
Nippon Meat Packers, Inc. (FOOD) ................ 2,000 32
Omron Corp. (ETRN) .............................. 1,000 14
Sankyo Co., Ltd. (HEAL) ......................... 2,000 44
Secom Co. (ETRN) ................................ 1,000 83
Sekisui House, Ltd. (CONS) ...................... 3,000 32
Shin-Etsu Chemical Co. (CHEM) ................... 1,000 24
Sony Corp. (ETRN) ............................... 800 58
Sumitomo Chemical Co. (CHEM) .................... 3,000 12
Sumitomo Electric Industries (TELE) ............. 2,000 22
Takeda Chemical Industries (HEAL) ............... 2,000 77
TDK Corp. (COMP) ................................ 1,000 91
Tokio Marine & Fire Insurance Co. (INSU) ........ 3,000 36
Toray Industries, Inc. (APPA) ................... 8,000 42
Toshiba Corp. (ETRN) ............................ 7,000 42
Toyota Motor Corp. (AUTO) ....................... 2,000 54
Yamato Transport Co., Ltd. (TRAN) ............... 1,000 14
----------
1,554
Malaysia - 0.0%
Malayan Banking Berhad (BANK) ................... 1,400 3
Netherlands - 4.3%
ABN Amro Holding NV (BANK) ...................... 3,906 82
Elsevier NV (MEDP) .............................. 7,600 106
Heineken NV (FOOD) .............................. 2,450 147
ING Groep NV (BANK) ............................. 4,479 273
KPN NV (UTIT) ................................... 5,048 253
Royal Dutch Petroleum Co. (OILS) ................ 3,800 189
Royal Dutch Petroleum Co.-NY Shares
(OILS) ........................................ 2,900 139
Unilever NV (CNSU) .............................. 1,500 128
----------
1,317
New Zealand - 0.9%
Auckland International (TRAN) ................... 9,400 13
Brierley Investments, Ltd. (LEIS) ............... 51,400 12
Carter Holt Harvey, Ltd. (PAPR) ................. 32,600 29
Fletcher Challenge Building (HOUS) .............. 7,800 12
Fletcher Challenge Energy (OILX) ................ 16,400 31
Fletcher Challenge Paper (PAPR) ................. 20,000 13
Lion Nathan , Ltd. (FOOD) ....................... 10,900 28
Telecom Corp. of New Zealand (TELS) ............. 31,700 138
----------
276
Norway - 0.2%
Norsk Hydro ASA (DIOP) .......................... 800 27
Norske Skogsindustrier ASA - Cl. A (PAPR) ....... 1,200 35
----------
62
Singapore - 0.7%
Singapore Press Holdings, Ltd. (MEDP) ........... 11,948 130
United Overseas Bank, Ltd. (BANK) ............... 11,000 71
----------
201
Spain - 1.1%
Banco Popular Espanol SA (BANK) ................. 1,220 92
Endesa SA (UTIE) ................................ 6,851 181
Telefonica S.A. (UTIT) .......................... 1,416 63
----------
336
Sweden - 2.3%
Astra AB - Cl. B (HEAL) ......................... 5,110 104
Electrolux AB - Ser. B (APPL) ................... 6,560 113
Ericsson(Lm) Telephone (TELE) ................... 4,410 105
Investor AB (FUND) .............................. 1,700 76
Nordbanken Holding (BANK) ....................... 9,200 59
Skandia Forsakrings AB (INSU) ................... 7,720 118
Svenska Handelsbankenn (BANK) ................... 800 34
Swedish Match (FOOD) ............................ 23,270 84
----------
693
Switzerland - 4.6%
Credit Suisse Group - Reg. (BANK) ............... 132 21
Julius Baer Holding (BANK) ...................... 20 66
Nestle SA (FOOD) ................................ 148 322
Novartis AG * (HEAL) ............................ 225 442
Roche Holding AG (HEAL) ......................... 21 256
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) ......... 52 136
Swisscom AG - Reg. * (UTIT) ..................... 368 154
----------
1,397
United Kingdom - 12.5%
Allied Zurich AG * (INSU) ....................... 7,950 120
Barclays Bank (BANK) ............................ 6,000 130
66
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
BOC Group plc (CHEM) ............................ 7,000 $ 100
Booker plc (FOOD) ............................... 11,300 12
Boots Co. plc (RETD) ............................ 7,000 120
British American Tobacco plc * (FOOD) ........... 5,950 52
British Petroleum Co. plc (OILX) ................ 14,866 221
British Steel plc (STEE) ........................ 60,800 92
Cable & Wireless plc (TELS) ..................... 4,000 49
Charter plc (DIOP) .............................. 10,372 57
Coats Viyella plc (APPA) ........................ 37,500 17
Diageo plc (FOOD) ............................... 7,739 86
Fairview Holdings plc * (HOUS) .................. 5,250 8
FKI plc (DIOP) .................................. 41,000 91
Garban plc * (FUND) ............................. 500 2
General Electric Co. plc (DIOP) ................. 17,400 158
Glaxo Wellcome plc (HEAL) ....................... 8,300 286
Greenalls Group (RETF) .......................... 7,000 37
Hanson plc (CONS) ............................... 14,875 118
Hillsdown Holdings, plc (FOOD) .................. 19,500 24
House of Fraser plc (RETS) ...................... 19,000 17
J. Sainsbury plc (RETF) ......................... 2,000 16
Lloyds TSB Group plc (BANK) ..................... 21,000 299
Marks & Spencer plc (RETS) ...................... 25,000 172
Mirror Group plc (MEDP) ......................... 25,000 62
National Westminster Bank plc (BANK) ............ 5,500 106
Nycomed Amersham plc (HEAL) ..................... 10,000 69
Peninsular & Oriental Steam Navigation Co. ......
(TRAN) ...................................... 6,654 79
Prudential Corp. (INSU) ......................... 13,000 198
Reed International plc (MEDP) ................... 9,000 72
Rio Tinto plc - Reg. (DIOP) ..................... 6,900 80
RJB Mining plc (META) ........................... 15,500 20
Royal & Sun Alliance Insurance Group plc
(INSU) ...................................... 5,944 48
Scottish and Southern Energy plc (UTIE) ......... 13,900 157
SmithKline Beecham plc (HEAL) ................... 12,000 166
Terranova Foods plc * (FOOD) .................... 5,250 10
Tesco plc (RETF) ................................ 45,000 131
Thames Water plc (AGRI) ......................... 5,583 108
Thames Water plc - Cl. B (AGRI) ................. 5,000 6
United News & Media plc (MEDP) .................. 5,000 43
Vodafone Group plc (TELS) ....................... 3,538 58
Williams plc (DIOP) ............................. 5,538 32
Yorkshire Water plc (AGRI) ...................... 10,000 91
----------
3,820
----------
TOTAL COMMON STOCK- ..... 54.6% 16,619
PREFERRED STOCK - 0.1%
Australia - 0.1%
News Corp., Ltd. (MEDI) ......................... 4,900 30
PUBLICLY-TRADED BONDS
Australia - 3.9%
New South Wales Treasury Corp. (GOVF)
7.0% due 04/01/04 .............................. 1,800 1,190
Canada - 3.8%
Government of Canada (GOVF)
4.25% due 12/01/21 ............................. 735 542
8.75% due 12/01/05 ............................. 780 625
----------
1,167
Denmark - 4.3%
Kingdom of Denmark (GOVF)
7.0% due 12/15/04 .............................. 7,200 1,306
France - 6.0%
Government of France - Bonds (GOVF)
7.75% due 10/25/05 ............................. 8,100 1,808
Germany - 5.9%
Federal Republic of Germany (GOVF)
8.25% due 09/20/01 ............................. 1,900 1,284
6.0% due 06/20/16 .............................. 740 521
----------
1,805
Italy - 2.8%
Republic of Italy (GOVF)
10.5% due 09/01/05 ............................. 1,000,000 839
Spain - 4.3%
Kingdom of Spain (GOVF)
10.15% due 01/31/06 ............................ 135,000 1,321
Sweden - 2.5%
Government of Sweden - Bonds (GOVF)
6.0% due 02/09/05 .............................. 5,600 765
United Kingdom - 5.7%
U.K. Treasury - Bonds (GOVF)
7.5% due 12/07/06 .............................. 865 1,726
----------
TOTAL PUBLICLY-TRADED BONDS- ..... 39.2% 11,927
WARRANTS - 0.0%
France - 0.0%
AXA-CTF de Valeur Garant
expires 07/31/01 (Cost $0) .................... 480
RIGHTS - 0.0%
Spain - 0.0%
Telefonica S.A. - Bonus Rights
expires 01/30/99 (Cost $0) .................... 1 1
67
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST 1
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 2.3%
Investment in joint trading account (Note
B)
6.101% due 01/04/99 .............................. $ 698 $ 698
---------- ----------
TOTAL INVESTMENTS- 96.2% 29,275
Cash and Receivables, less payables- 3.8% 1,141
---------- ----------
NET ASSETS- 100.0% $ 30,416
========== ==========
*Non-income producing security.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Foreign Governmental ........................ GOVF $11,927 41.8%
Banks ....................................... BANK 2,302 8.1%
Insurance ................................... INSU 1,589 5.6%
Diversified Operations ...................... DIOP 1,573 5.5%
Health Care Products ........................ HEAL 1,478 5.2%
Food, Beverage and Tobacco .................. FOOD 1,048 3.7%
Telecommunication Services .................. TELS 794 2.8%
Chemicals ................................... CHEM 663 2.3%
Telecommunication Equipment ................. TELE 560 2.0%
Oil ......................................... OILS 550 1.9%
Electric Power .............................. UTIE 521 1.8%
Telephone ................................... UTIT 470 1.7%
Oil and Natural Gas Exploration
and Production ............................. OILX 464 1.6%
Electronic Products and
Services .................................... ETRN 437 1.5%
Retail - Department Stores .................. RETS 420 1.5%
Automobile .................................. AUTO 417 1.5%
Media - Publishing .......................... MEDP 414 1.4%
Construction ................................ CONS 377 1.3%
Agricultural Operations ..................... AGRI 218 0.8%
Transportation Services ..................... TRAN 201 0.7%
Machinery ................................... MACH 198 0.7%
Retail - Food ............................... RETF 184 0.6%
Paper and Forest Products ................... PAPR 172 0.6%
Media - TV / Radio .......................... MEDI 144 0.5%
Auto and Truck Parts ........................ PART 134 0.5%
Consumer - Miscellaneous .................... CNSU 128 0.4%
Retail - Drug Stores ........................ RETD 120 0.4%
Household Appliances /
Furnishings ................................. APPL 113 0.4%
Commercial Services ......................... COMM 105 0.4%
Shoe and Apparel
Manufacturing ............................... APPA 103 0.4%
Leisure and Recreation ...................... LEIS 97 0.3%
Steel ....................................... STEE 92 0.3%
Computer Equipment .......................... COMP 91 0.3%
Brokerage and Investment
Management .................................. FUND 78 0.3%
Electrical Equipment ........................ ELEQ 68 0.2%
Computer Software and
Services .................................... SOFT 65 0.2%
Financial Services .......................... FINL 46 0.2%
Metals and Mining ........................... META 42 0.1%
Containers .................................. CONT 35 0.1%
Housing ..................................... HOUS 30 0.1%
Precious Metals/Gems/Stones ................. PMET 28 0.1%
Oil - Equipment and Services ................ OILE 27 0.1%
Cosmetics and Personal Care
Products .................................... HNBA 23 0.1%
Real Estate Investment Trust ................ REIT 13 0.0%
Natural Gas Distribution .................... UTIG 10 0.0%
Health Care Services ........................ HEAS 8 0.0%
------- -----
$28,577 100.0%
======= =====
</TABLE>
68
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.0%
Orbital Sciences Corp. * ........................ 20,870 $ 924
Banks - 3.8%
Firstar Corp. ................................... 24,520 2,286
U.S. Trust Corp. ................................ 17,630 1,340
----------
3,626
Business Services - 1.2%
Robert Half International, Inc. ................. 25,955 1,160
Commercial Services - 18.6%
Apollo Group, Inc. - Cl. A * .................... 341,774 11,578
Capita Group plc ................................ 90,663 835
HA-LO Industries, Inc. * ........................ 37,740 1,420
ITT Educational Services, Inc. .................. 65,100 2,213
Outdoor Systems, Inc. * ......................... 49,615 1,488
----------
17,534
Computer Equipment - 3.8%
VERITAS Software Corp. * ........................ 59,030 3,538
Computer Software and Services - 3.1%
America Online, Inc. * .......................... 10,845 1,570
Equant - NY Reg. Shares ......................... 6,774 459
Exodus Communications, Inc. * ................... 7,895 507
InfoSpace.com, Inc. * ........................... 10,910 416
----------
2,952
Electronic Products and Services - 9.6%
Cisco Systems, Inc. * ........................... 10,145 941
Gemstar International Group, Ltd. * ............. 12,365 708
Uniphase Corp. * ................................ 13,605 944
Vitesse Semiconductor Corp. * ................... 140,360 6,404
----------
8,997
Financial Services - 3.7%
Paychex, Inc. ................................... 67,000 3,446
Health Care Products - 8.0%
MedImmune, Inc. * ............................... 28,155 2,799
Sepracor, Inc. * ................................ 32,420 2,857
Sofamor Danek Group, Inc. * ..................... 8,975 1,093
Watson Pharmaceuticals, Inc. * .................. 12,325 775
----------
7,524
Health Care Services - 4.4%
Omnicare, Inc. .................................. 119,890 4,166
Leisure and Recreation - 1.8%
Premier Parks, Inc. * ........................... 27,400 829
SFX Entertainment, Inc. - Cl. A * ............... 15,870 871
----------
1,700
Media - TV / Radio - 17.5%
Adelphia Communications Corp. - Cl. A ........... 35,615 1,630
Broadcast Common, Inc. .......................... 3,985 305
Capstar Broadcasting Corp. - Cl. A .............. 80,320 1,837
Heftel Broadcasting Corp. * ..................... 103,385 5,092
Jacor Communications, Inc. * .................... 78,825 5,074
TCA Cable TV, Inc. .............................. 45,430 1,621
Univision Communications, Inc. - Cl. A * ........ 24,703 894
----------
16,453
Retail - Department Stores - 1.8%
Amazon.com, Inc. * .............................. 5,350 1,719
Retail - Drug Stores - 1.8%
CVS Corp. ....................................... 30,350 1,669
Retail - Food - 4.9%
J.D. Wetherspoon plc ............................ 387,019 1,151
PizzaExpress plc ................................ 257,256 3,428
----------
4,579
Telecommunication Equipment - 4.2%
American Tower Corp. - Cl. A .................... 60,695 1,794
Crown Castle International Corp. ................ 93,340 2,194
----------
3,988
Telecommunication Services - 4.9%
Qwest Communications International, Inc. * ...... 18,755 938
RSL Communications, Ltd. - Cl. A * .............. 59,360 1,751
Winstar Communications, Inc. * .................. 48,420 1,888
----------
4,577
Telephone - 0.1%
MetroNet Communications Corp. - Cl. B * ......... 1,745 59
NEXTLINK Communications, Inc. * ................. 40 1
----------
60
Transportation Services - 1.7%
Ryanair Holdings plc - ADR * .................... 42,206 1,593
----------
TOTAL COMMON STOCK- 95.9% 90,205
Par
Value
(000's)
COMMERCIAL PAPER - 2.2%
Financial Services - 2.2%
CIT Group Holdings, Inc. - Cl. A
5.3% due 01/04/99 ................................ $ 2,100 2,099
---------- ----------
TOTAL INVESTMENTS- 98.1% 92,304
Cash and Receivables, less payables- 1.9% 1,781
---------- ----------
NET ASSETS- 100.0% $ 94,085
---------- ----------
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial
69
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.0%
Allied Signal, Inc. ............................. 16,100 $ 713
Boeing Co. ...................................... 17,700 578
----------
1,291
Auto and Truck Parts - 2.3%
General Motors Corp. ............................ 14,900 1,066
Genuine Parts Co. ............................... 27,600 923
TRW, Inc. ....................................... 15,200 854
----------
2,843
Banks - 8.6%
Bank One Corp. .................................. 19,400 991
BankAmerica Corp. ............................... 7,400 445
BankBoston Corp. ................................ 11,800 459
Chase Manhattan Corp. ........................... 13,800 939
First Union Corp. ............................... 15,070 916
Fleet Financial Group, Inc. ..................... 20,900 934
J.P. Morgan & Co., Inc. ......................... 10,600 1,114
Mellon Bank Corp. ............................... 32,000 2,200
Mercantile Bankshares Corp. ..................... 16,300 628
National City Corp. ............................. 9,300 674
PNC Bank Corp. .................................. 8,600 465
Wells Fargo & Co. ............................... 20,000 799
----------
10,564
Business Services - 1.1%
Dun & Bradstreet Corp. .......................... 17,000 537
H & R Block, Inc. ............................... 17,400 783
----------
1,320
Chemicals - 4.7%
Dow Chemical Co. ................................ 16,100 1,464
E.I. du Pont de Nemours & Co. ................... 19,700 1,045
Great Lakes Chemical Corp. ...................... 19,300 772
Hercules, Inc. .................................. 30,900 846
Imperial Chemical Industries plc - ADR .......... 11,100 388
Lubrizol Corp. .................................. 11,100 285
Nalco Chemical Co. .............................. 18,400 571
Witco Corp. ..................................... 24,100 384
----------
5,755
Commercial Services - 0.5%
R.R. Donnelley & Sons Co. ....................... 15,300 670
Computer Equipment - 0.7%
Hewlett-Packard Co. ............................. 13,100 895
Construction - 0.8%
Armstrong World Industries, Inc. ................ 16,100 971
Consumer - Miscellaneous - 1.0%
Fortune Brands, Inc. ............................ 22,800 721
Stanley Works ................................... 6,500 180
Tupperware Corp. ................................ 19,700 324
----------
1,225
Cosmetics and Personal Care Products - 1.1%
International Flavors & Fragrances, Inc. ........ 29,400 1,299
Diversified Operations - 5.8%
Cooper Industries, Inc. ......................... 10,400 496
Corning, Inc. ................................... 11,700 526
Eaton Corp. ..................................... 1,500 106
General Electric Co. ............................ 13,900 1,419
Minnesota Mining & Manufacturing Co. ............ 16,600 1,181
Olin Corp. ...................................... 19,300 546
Pall Corp. ...................................... 30,400 769
PPG Industries, Inc. ............................ 13,400 781
Tomkins plc ..................................... 149,400 710
Tyco International, Ltd. ........................ 8,949 675
----------
7,209
Electric Power - 5.8%
Baltimore Gas & Electric Co. .................... 8,700 269
Central & South West Corp. ...................... 8,700 239
Dominion Resources, Inc. ........................ 8,800 411
DQE, Inc. ....................................... 17,100 751
Duke Energy Co. ................................. 14,100 903
Entergy Corp. ................................... 13,000 405
Firstenergy Corp. ............................... 28,995 944
GPU, Inc. ....................................... 6,700 296
Houston Industries, Inc. ........................ 20,900 672
PacifiCorp ...................................... 27,400 577
Peco Energy Co. ................................. 8,000 333
Southern Co. .................................... 32,700 950
Teco Energy, Inc. ............................... 13,900 392
----------
7,142
Electrical Equipment - 0.7%
Unicom Corp. .................................... 22,500 868
Electronic Products and Services - 1.2%
AMP, Inc. ....................................... 20,900 1,088
Hubbell, Inc. - Cl. B ........................... 11,200 426
----------
1,514
Financial Services - 1.0%
Citigroup, Inc. ................................. 24,050 1,190
Food, Beverage and Tobacco - 9.4%
Anheuser-Busch Cos., Inc. ....................... 26,800 1,759
Brown-Forman Corp. .............................. 12,100 916
General Mills, Inc. ............................. 22,300 1,734
H.J. Heinz Co. .................................. 14,700 832
Kellogg Co. ..................................... 21,700 741
McCormick & Co., Inc. ........................... 26,200 886
Philip Morris Cos., Inc. ........................ 34,300 1,835
Quaker Oats Co. ................................. 17,300 1,029
RJR Nabisco Holdings Corp. ...................... 25,200 748
UST, Inc. ....................................... 33,400 1,165
----------
11,645
70
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - 4.5%
Abbott Laboratories ............................. 10,100 $ 495
American Home Products Corp. * .................. 36,700 2,067
Bausch & Lomb, Inc. ............................. 12,400 744
Pharmacia & Upjohn, Inc. ........................ 31,600 1,789
Smith & Nephew plc .............................. 162,300 493
----------
5,588
Household Appliances / Furnishings - 0.6%
Whirlpool Corp. ................................. 14,100 781
Insurance - 4.7%
American General Corp. .......................... 16,500 1,287
Chubb Corp. ..................................... 2,200 143
EXEL, Ltd. - Cl. A .............................. 10,400 780
Lincoln National Corp. .......................... 7,500 613
Safeco Corp. .................................... 23,500 1,009
St. Paul Cos., Inc. ............................. 35,652 1,239
Transamerica Corp. .............................. 6,200 716
----------
5,787
Leisure and Recreation - 1.3%
Eastman Kodak Co. ............................... 15,800 1,137
Hilton Hotels Corp. ............................. 23,100 442
----------
1,579
Machinery - 0.2%
Deere & Co. ..................................... 6,600 219
Media - Publishing - 1.7%
Dow Jones & Co., Inc. ........................... 11,200 539
Knight-Ridder, Inc. ............................. 18,600 951
Readers Digest Association, Inc. - Cl. A ........ 22,700 572
----------
2,062
Metal Product and Fabrication - 0.4%
Reynolds Metals Co. ............................. 9,700 511
Metals and Mining - 0.8%
Inco, Ltd. ...................................... 30,700 324
Phelps Dodge Corp. .............................. 12,100 616
----------
940
Oil - 0.8%
Royal Dutch Petroleum Co. - NY Shares ........... 21,100 1,010
Oil - Equipment and Services - 0.5%
Baker Hughes, Inc. .............................. 35,300 624
Oil and Natural Gas Exploration and Production - 10.5%
Amerada Hess Corp. .............................. 17,600 876
Amoco Corp. ..................................... 31,400 1,896
Atlantic Richfield Co. .......................... 21,000 1,370
British Petroleum Co. plc - ADR ................. 6,500 583
Chevron Corp. ................................... 16,900 1,402
Exxon Corp. ..................................... 26,700 1,952
Mobil Corp. ..................................... 17,100 1,490
Occidental Petroleum Corp. ...................... 16,500 278
Phillips Petroleum Co. .......................... 11,300 482
Texaco, Inc. .................................... 23,000 1,216
Unocal Corp. .................................... 32,000 934
USX-Marathon Group .............................. 17,400 524
----------
13,003
Paper and Forest Products - 3.6%
Consolidated Papers, Inc. ....................... 24,500 674
Georgia-Pacific Corp. ........................... 9,600 562
International Paper Co. ......................... 12,800 574
Kimberly-Clark Corp. ............................ 24,100 1,313
Union Camp Corp. ................................ 18,900 1,276
----------
4,399
Pollution Control - 1.2%
Browning-Ferris Industries, Inc. ................ 24,200 688
Waste Management, Inc. .......................... 17,890 834
----------
1,522
Precious Metals/Gems/Stones - 0.3%
Newmont Mining Corp. ............................ 23,700 428
Real Estate Investment Trust - 2.1%
Archstone Communities Trust ..................... 13,000 263
Crescent Real Estate Equities, Inc. ............. 19,300 444
Simon Property Group, Inc. ...................... 31,096 886
Starwood Hotels & Resorts ....................... 35,229 799
Weingarten Realty Investors ..................... 4,700 210
----------
2,602
Real Estate Operations - 0.1%
Rouse Co. ....................................... 5,200 143
Retail - Department Stores - 1.4%
J.C. Penney, Inc. ............................... 16,000 750
May Department Stores Co. ....................... 9,000 543
Toys "R" Us, Inc. * ............................. 26,400 446
----------
1,739
Steel - 0.3%
USX-US Steel Group, Inc. ........................ 13,300 306
Telecommunication Services - 0.6%
BCE, Inc. ....................................... 16,500 626
Frontier Corp. .................................. 3,500 119
----------
745
Telephone - 9.0%
Alltel Corp. .................................... 37,700 2,255
AT&T Corp. ...................................... 17,700 1,332
Bell Atlantic Corp. ............................. 21,500 1,140
BellSouth Corp. ................................. 11,400 569
GTE Corp. ....................................... 24,900 1,618
SBC Communications, Inc. ........................ 53,055 2,845
Telecomunicacoes Brasileiras S.A. ............... 7,500 545
71
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Telephone - Continued
U.S. West, Inc. ................................. 12,300 $ 795
----------
11,099
Transportation Services - 3.4%
Alexander & Baldwin, Inc. ....................... 9,500 221
Burlington Northern Santa Fe .................... 21,700 732
GATX Corp. ...................................... 8,800 333
Norfolk Southern Corp. .......................... 48,500 1,537
Union Pacific Corp. ............................. 29,400 1,325
----------
4,148
U.S. Government Agencies - 1.2%
Federal National Mortgage Assoc. ................ 19,200 1,421
----------
TOTAL COMMON STOCK- 94.9% 117,057
Par
Value
(000's)
PUBLICLY-TRADED BONDS
U.S. Governmental - 0.6%
U.S. Treasury - Notes
5.75% due 08/15/03 .............................. $ 150 157
5.875% due 11/15/99 ............................. 200 202
6.5% due 05/31/01 ............................... 200 208
7.0% due 07/15/06 ............................... 150 171
----------
738
----------
TOTAL PUBLICLY-TRADED BONDS- 0.6% 738
COMMERCIAL PAPER
Diversified Operations - 2.9%
Ciesco L.P.
5.35% due 01/27/99 .............................. 3,600 3,590
Food, Beverage and Tobacco - 0.7%
Sysco Corp.
5.1% due 01/04/99 ............................... 873 873
Machinery - 0.8%
Dover Corp.
5.6% due 01/26/99 ............................... 1,000 996
TOTAL COMMERCIAL PAPER- 4.4% 5,459
---------- ----------
TOTAL INVESTMENTS- 99.9% 123,254
Cash and Receivables, less payables- 0.1% 111
---------- ----------
NET ASSETS- 100.0% $ 123,365
========== ==========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
72
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Banks- 7.7%
BankBoston
5.33% due 02/26/99 .............................. $ 15,000 $ 15,118
Key Bank NA
5.435% due 07/21/99 ............................. 10,000 10,012
Westpac Banking Corp. NY - Deposit Notes
5.66% due 03/22/99 .............................. 5,000 5,225
----------
30,355
Brokerage and Investment Management- 1.7%
Goldman Sachs Group
5.624% due 03/26/99 ............................. 7,000 7,005
Financial Services- 0.8%
Norwest Financial, Inc. - Sr. Notes 144A (a)
6.68% due 09/15/99 .............................. 3,000 3,084
Oil - Equipment and Services- 1.4%
American Honda Finance Corp. ....................
5.604% due 05/26/99 ............................. 5,500 5,503
----------
TOTAL PUBLICLY-TRADED BONDS- ... 11.6% 45,947
COMMERCIAL PAPER
Auto and Truck Parts - 2.6%
Daimler Benz NA
5.0% due 04/23/99 ............................... 8,000 7,876
5.14% due 03/19/99 .............................. 2,458 2,431
----------
10,307
Automobile - 1.8%
American Honda Finance Corp. ....................
5.05% due 02/12/99 .............................. 5,000 4,971
5.07% due 02/12/99 .............................. 2,000 1,988
----------
6,959
Banks - 10.6%
ANZ (Delaware), Inc.
5.04% due 03/12/99 .............................. 1,464 1,450
Bank of Nova Scotia
5.12% due 01/20/99 .............................. 5,000 4,986
Barclays Bank plc - Debs
5.35% due 02/04/99 .............................. 5,000 4,975
Credit Suisse
5.15% due 01/21/99 .............................. 1,500 1,496
5.25% due 01/12/99 .............................. 2,965 2,960
National Bank of Canada
5.2% due 03/17/99 ............................... 4,000 4,018
5.7% due 03/05/99 ............................... 5,000 5,239
PNC Bank National Association
5.499% due 07/27/99 ............................. 10,000 10,001
Svenska Handelbanken, Inc.
5.05% due 03/10/99 .............................. 4,000 3,962
Svenska Handelsbanken - A Shares
5.43% due 01/05/99 .............................. 3,000 3,010
----------
42,097
Brokerage and Investment Management - 5.8%
Lehman Brothers Holdings, Inc.
5.45% due 02/26/99 .............................. 2,500 2,479
Merrill Lynch & Co., Inc.
5.05% due 02/26/99 .............................. 5,000 4,961
Preferred Receivables Funding Corp.
5.18% due 01/20/99 .............................. 1,500 1,496
5.33% due 02/04/99 .............................. 3,977 3,957
Salomon Smith Barney Holdings, Inc.
5.25% due 02/25/99 .............................. 10,000 9,919
----------
22,812
Chemicals - 6.3%
Air Products & Chemicals, Inc.
4.85% due 03/31/99 .............................. 9,660 9,543
E.I. du Pont de Nemours & Co.
5.07% due 01/27/99 .............................. 8,040 8,011
5.18% due 02/02/99 .............................. 4,000 3,982
Formosa Plastics Corp. - Cl. B
5.35% due 01/22/99 .............................. 3,500 3,489
----------
25,025
Construction - 1.0%
Compagnie de St. Gobain - Notes
5.03% due 03/15/99 .............................. 3,931 3,891
Consumer - Miscellaneous - 1.6%
Alpine Securitization Corp.
5.3% due 02/19/99 ............................... 1,198 1,189
5.55% due 01/15/99 .............................. 5,000 4,990
----------
6,179
Diversified Operations - 5.4%
American Petrofina Holding Co.
5.22% due 01/12/99 .............................. 2,000 1,997
Ciesco L.P.
5.25% due 02/05/99 .............................. 1,609 1,601
5.35% due 01/27/99 .............................. 10,000 9,961
Eaton Corp.
5.17% due 02/23/99 .............................. 3,000 2,977
Moat Funding LLC
5.28% due 03/09/99 .............................. 4,866 4,818
----------
21,354
Financial Services - 36.7%
Assets Securitization Corp.
5.0% due 04/14/99 ............................... 4,000 3,943
5.2% due 01/26/99 ............................... 2,256 2,248
5.25% due 01/29/99 .............................. 5,000 4,980
Associates First Capital Corp.
5.04% due 02/12/99 .............................. 3,937 3,914
5.07% due 03/19/99 .............................. 3,000 2,967
5.15% due 03/11/99 .............................. 299 296
73
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - CONTINUED
Financial Services - Continued
Chevron UK Investment plc
5.0% due 04/23/99 ............................... $ 1,910 $ 1,880
Corporate Asset Funding Co.
5.23% due 01/25/99 .............................. 8,000 7,972
5.25% due 02/19/99 .............................. 3,598 3,572
Corporate Recievables Corp.
5.125% due 02/10/99 ............................. 5,655 5,623
5.22% due 01/21/99 .............................. 8,805 8,778
5.35% due 02/12/99 .............................. 3,000 2,981
Diageo Capital plc
5.03% due 02/22/99 .............................. 5,000 4,964
5.25% due 01/27/99 .............................. 7,500 7,472
Falcon Asset Securitization Corp.
5.2% due 02/04/99 ............................... 4,444 4,422
5.3% due 02/02/99 ............................... 3,410 3,394
5.35% due 01/25/99 .............................. 6,500 6,477
General Electric Capital Corp.
5.06% due 04/27/99 .............................. 2,393 2,354
5.16% due 03/09/99 .............................. 3,982 3,944
Glencore Finance, Ltd.
5.85% due 01/15/99 .............................. 3,202 3,195
Greenwich Funding Corp.
5.6% due 01/15/99 ............................... 451 450
Monte Rosa Capital Corp.
5.25% due 03/04/99 .............................. 5,000 4,955
5.4% due 02/12/99 ............................... 2,973 2,954
5.5% due 01/28/99 ............................... 5,000 4,979
National Australia Funding
5.7% due 01/05/99 ............................... 5,000 4,997
National Rural Utilities Cooperative Finance
Corp.
5.13% due 02/12/99 .............................. 2,588 2,573
Pemex Capital, Inc.
5.25% due 02/26/99 .............................. 1,898 1,882
Sheffield Receivables Corp.
5.23% due 02/11/99 .............................. 2,000 1,988
5.25% due 01/13/99 .............................. 6,000 5,990
5.27% due 01/19/99 .............................. 4,000 3,989
Sigma Finance, Inc.
5.16% due 01/19/99 .............................. 4,000 3,990
5.19% due 05/28/99 .............................. 3,000 2,936
5.2% due 01/21/99 ............................... 5,830 5,813
5.22% due 01/21/99 .............................. 1,500 1,496
5.25% due 01/11/99 .............................. 1,000 999
Twin Towers, Inc.
5.25% due 01/25/99 .............................. 5,072 5,054
5.3% due 01/25/99 ............................... 2,563 2,554
5.33% due 01/25/99 .............................. 2,000 1,993
----------
144,968
Food, Beverage and Tobacco - 1.6%
Coca-Cola Enterprises, Inc.
5.07% due 04/20/99 .............................. 3,194 3,145
5.1% due 03/18/99 ............................... 3,050 3,017
----------
6,162
Personal and Commercial Lending - 6.1%
American General Finance Corp.
5.11% due 03/09/99 .............................. 403 399
Ford Credit Europe plc
5.0% due 04/05/99 ............................... 4,450 4,392
5.11% due 03/12/99 .............................. 3,395 3,361
Ford Motor Credit Co.
5.39% due 01/05/99 .............................. 538 538
Household Finance Corp.
5.16% due 01/27/99 .............................. 5,000 4,981
Royal Bank of Canada
5.63% due 02/26/99 .............................. 10,000 10,483
----------
24,154
Retail - Department Stores - 2.7%
JC Penney Funding Corp.
5.15% due 01/27/99 .............................. 4,212 4,196
Sears Roebuck Acceptance Corp.
5.22% due 03/05/99 .............................. 2,271 2,250
Sunkyong America, Inc.
5.05% due 03/09/99 .............................. 2,909 2,882
5.25% due 03/09/99 .............................. 1,554 1,539
----------
10,867
----------
TOTAL COMMERCIAL PAPER- 82.2% 324,775
---------- ----------
TOTAL INVESTMENTS- 93.8% 370,722
Cash and Receivables, less payables- 6.2% 24,473
---------- ----------
NET ASSETS- 100.0% $ 395,195
========== ==========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1998, securities aggregated $3,084 or
0.8% of net assets of the Portfolio.
See notes to financial statements.
74
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.8%
Northrop Grumman Corp. .......................... 10,800 $ 790
Auto and Truck Parts - 3.3%
Lear Corp. * .................................... 44,600 1,717
LucasVarity plc - ADR * ......................... 42,700 1,430
----------
3,147
Banks - 7.4%
BankBoston Corp. ................................ 33,900 1,320
North Fork Bancorporation, Inc. ................. 63,600 1,523
Valley National Bancorp ......................... 82,000 2,311
Westamerica Bancorporation ...................... 50,500 1,856
----------
7,010
Brokerage and Investment Management - 1.8%
Bear Stearns Cos., Inc. ......................... 45,900 1,716
Business Services - 2.6%
Dun & Bradstreet Corp. .......................... 76,400 2,411
Chemicals - 1.8%
Praxair, Inc. ................................... 47,000 1,657
Computer Equipment - 2.2%
Quantum Corp. ................................... 99,800 2,121
Computer Software and Services - 2.6%
Computer Associates International, Inc. ......... 33,800 1,441
Parametric Technology Co. * ..................... 60,700 994
----------
2,435
Containers - 1.6%
Owens-Illinois, Inc. * .......................... 48,500 1,485
Cosmetics and Personal Care Products - 2.0%
International Flavors & Fragrances, Inc. ........ 43,000 1,900
Diversified Operations - 1.4%
Raychem Corp. ................................... 42,200 1,364
Electric Power - 7.8%
GPU, Inc. ....................................... 36,900 1,631
Illinova Corp. .................................. 95,900 2,397
Montana Power Co. ............................... 30,000 1,697
Niagara Mohawk Power Corp. ...................... 102,600 1,654
----------
7,379
Electrical Equipment - 3.7%
UCAR International, Inc. * ...................... 125,800 2,241
Unicom Corp. .................................... 32,400 1,249
----------
3,490
Electronic Products and Services - 2.3%
Teradyne, Inc. * ................................ 51,500 2,182
Food, Beverage and Tobacco - 4.0%
ConAgra, Inc. ................................... 55,700 1,755
Nabisco Holdings Corp. - Cl. A .................. 49,400 2,050
----------
3,805
Health Care Products - 3.9%
ALZA Corp. * .................................... 39,400 2,059
Boston Scientific Corp. * ....................... 51,000 1,367
Centocor, Inc. * ................................ 5,500 248
----------
3,674
Health Care Services - 3.5%
PacifiCare Health Systems, Inc. - Cl. B ......... 23,100 1,837
Tenet Healthcare Corp. * ........................ 57,000 1,496
----------
3,333
Insurance - 5.9%
Ace, Ltd. * ..................................... 74,000 2,548
Aon Corp. ....................................... 32,100 1,778
EXEL, Ltd. - Cl. A .............................. 17,300 1,297
----------
5,623
Leisure and Recreation - 3.5%
Host Marriott Corp. ............................. 136,200 1,881
Mirage Resorts, Inc. ............................ 96,200 1,437
----------
3,318
Machinery - 2.5%
McDermott International, Inc. ................... 95,200 2,350
Media - TV / Radio - 5.4%
A.H. Belo Corp. - Common Ser. A ................. 115,500 2,303
E.W. Scripps Co. - Cl. A ........................ 40,000 1,990
Infinity Broadcasting Corp. - Cl. A * ........... 31,000 848
----------
5,141
Natural Gas Distribution - 3.9%
KN Energy, Inc. ................................. 8,700 316
NICOR, Inc. ..................................... 21,300 900
UGI Corp. ....................................... 17,200 409
Williams Cos., Inc. ............................. 64,900 2,024
----------
3,649
Oil - 2.5%
Tosco Corp. ..................................... 91,800 2,375
Oil and Natural Gas Exploration and Production - 1.6%
Coastal Corp. ................................... 20,200 706
Transocean Offshore, Inc. ....................... 17,500 469
Valero Energy Corp. ............................. 15,900 338
----------
1,513
Personal and Commercial Lending - 5.2%
Countrywide Credit Industries, Inc. ............. 50,500 2,535
SLM Holding Corp. ............................... 50,300 2,414
----------
4,949
Real Estate Investment Trust - 0.7%
Crestline Capital Corp. * ....................... 13,620 199
Starwood Hotels & Resorts ....................... 20,000 454
----------
653
75
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Real Estate Operations - 1.2%
IndyMac Mortgage Holdings, Inc. ................. 107,200 $ 1,132
Retail - Department Stores - 7.3%
CompUSA, Inc. * ................................. 127,400 1,664
Fred Meyer, Inc. * .............................. 25,000 1,506
Harcourt General, Inc. .......................... 45,300 2,410
Tandy Corp. ..................................... 33,000 1,359
----------
6,939
Steel - 1.8%
AK Steel Holding Corp. .......................... 73,000 1,716
Telecommunication Services - 2.4%
Loral Space & Communications, Ltd. * ............ 105,000 1,871
McLeodUSA, Inc. - Cl. A * ....................... 13,000 406
----------
2,277
Telephone - 0.5%
NEXTLINK Communications, Inc. * ................. 17,000 482
Transportation Services - 1.1%
Continental Airlines, Inc. - Cl. B * ............ 31,900 1,069
----------
TOTAL COMMON STOCK- ..... 98.2% 93,085
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.2%
Investment in joint trading account (Note B)
6.101% due 01/04/99 .............................. $ 2,067 2,067
---------- ----------
TOTAL INVESTMENTS- 100.4% 95,152
Payables, less cash and receivables- (0.4)% (332)
---------- ----------
NET ASSETS- 100.0% $ 94,820
========== ==========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
76
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 0.5%
Avis Rental A Car, Inc. * ............................. 41,750 $ 1,010
Banks - 5.2%
Charter One Financial, Inc. ........................... 53,970 1,498
First American Corp. .................................. 35,100 1,557
First Tennessee National Corp. ........................ 46,500 1,770
FirstMerit Corp. ...................................... 55,300 1,486
Northern Trust Corp. .................................. 18,300 1,598
Sovereign Bancorp, Inc. ............................... 14,100 201
Wilmington Trust Trust Corp. .......................... 26,300 1,621
Zions Bancorp ......................................... 5,800 362
--------
10,093
Brokerage and Investment Management - 0.5%
E*TRADE Group, Inc. * ................................. 21,300 996
Business Services - 1.9%
Interim Services, Inc. ................................ 87,600 2,047
Modis Professional Services, Inc. * ................... 113,300 1,643
--------
3,690
Commercial Services - 4.0%
ACNielson Corp. * ..................................... 30,800 870
Concord EFS, Inc. * ................................... 43,200 1,831
Lamar Advertising Co. * ............................... 55,800 2,079
Outdoor Systems, Inc. * ............................... 100,050 3,001
--------
7,781
Computer Equipment - 4.9%
Comverse Technology, Inc. * ........................... 18,800 1,335
Lexmark International Group, Inc. - Cl. A * ........... 29,700 2,985
Micron Electronics, Inc. * ............................ 68,700 1,189
Quantum Corp. ......................................... 81,800 1,738
Wang Laboratories, Inc. * ............................. 81,100 2,251
--------
9,498
Computer Software and Services - 14.0%
BEA Systems, Inc. ..................................... 92,425 1,132
BMC Software, Inc. * .................................. 8,700 388
Cadence Design Systems, Inc. * ........................ 44,500 1,324
Cambridge Technology Partners, Inc. * ................. 30,700 679
CBT Group Public, Ltd. - ADR * ........................ 12,900 192
Citrix Systems, Inc. * ................................ 25,300 2,456
Compuware Corp. * ..................................... 21,300 1,664
DST Systems, Inc. * ................................... 17,700 1,010
EMC Corp. * ........................................... 26,000 2,210
Excite, Inc. * ........................................ 11,200 471
Fiserv, Inc. .......................................... 32,900 1,692
Infoseek Corp. * ...................................... 24,300 1,200
J.D. Edwards & Co. * .................................. 55,200 1,566
Keane, Inc. * ......................................... 43,300 1,729
Network Associates, Inc. .............................. 40,800 2,703
Novell, Inc. * ........................................ 99,600 1,805
SunGard Data Systems, Inc. ............................ 63,600 2,524
Unisys Corp. * ........................................ 66,975 2,307
--------
27,052
Consumer - Miscellaneous - 1.4%
Loewen Group, Inc. .................................... 102,200 862
Select Appointments Holdings Public Ltd.,
Co. - ADR ............................................ 88,600 1,905
--------
2,767
Containers - 0.7%
Sealed Air Corp. * .................................... 25,000 1,277
Cosmetics and Personal Care Products - 1.6%
Dial Corp. ............................................ 103,600 2,991
Electric Power - 1.0%
Montana Power Co. ..................................... 32,200 1,821
Electrical Equipment - 0.5%
Best Buy Co., Inc. .................................... 14,300 878
Electronic Products and Services - 10.6%
Analog Devices, Inc. * ................................ 55,100 1,729
Applied Materials, Inc. * ............................. 19,400 828
Artesyn Technologies, Inc. ............................ 64,200 899
Jabil Circuit, Inc. * ................................. 65,775 4,908
Linear Technology Corp. ............................... 11,700 1,048
Maxim Integrated Products, Inc. * ..................... 21,900 957
Novellus Systems, Inc. * .............................. 16,000 792
Sanmina Corp. * ....................................... 34,700 2,169
SCI Systems, Inc. * ................................... 33,300 1,923
Sterling Commerce, Inc. * ............................. 44,700 2,011
Vitesse Semiconductor Corp. * ......................... 19,400 885
Waters Corp. * ........................................ 26,900 2,347
--------
20,496
Financial Services - 2.0%
CIT Group, Inc. - Cl. A * ............................. 56,400 1,794
CMAC Investment Corp. ................................. 19,000 873
Finova Group, Inc. .................................... 22,000 1,187
--------
3,854
Food, Beverage and Tobacco - 2.1%
Aurora Foods, Inc. .................................... 78,900 1,563
International Home Foods, Inc. * ...................... 34,300 579
Richfood Holdings, Inc. ............................... 66,300 1,376
Sysco Corp. ........................................... 21,500 590
--------
4,108
Health Care Products - 7.5%
Allegiance Corp. ...................................... 27,600 1,287
Elan Corp. plc - ADR * ................................ 20,800 1,447
Forest Laboratories, Inc. * ........................... 35,600 1,893
Genzyme Corp. (General Division) * .................... 55,400 2,756
Genzyme Molecular Oncology * .......................... 8,535 28
Mylan Laboratories, Inc. .............................. 101,225 3,189
STERIS Corp. .......................................... 70,200 1,996
Stryker Corp. ......................................... 34,100 1,878
--------
14,474
Health Care Services - 7.7%
Covance, Inc. * ....................................... 40,000 1,165
HCR Manor Care, Inc. * ................................ 82,950 2,437
Health Management Associates, Inc. - Cl. A * .......... 109,300 2,364
77
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
DIVERSIFIED MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Services - Continued
HEALTHSOUTH Corp. * ................................... 117,300 $ 1,811
Humana, Inc. * ........................................ 9,100 162
IDX Systems Corp. ..................................... 22,500 990
Omnicare, Inc. ........................................ 89,960 3,126
Total Renal Care Holdings, Inc. * ..................... 70,400 2,081
Wellpoint Health Networks, Inc. * ..................... 7,600 661
--------
14,797
Household Appliances/Furnishings - 1.0%
Leggett & Platt, Inc. ................................. 83,300 1,833
Insurance - 6.3%
Ace, Ltd. * ........................................... 41,300 1,422
Allmerica Financial Corp. ............................. 25,300 1,464
Executive Risk, Inc. .................................. 21,300 1,170
EXEL, Ltd. - Cl. A .................................... 15,184 1,139
Horace Mann Educators Corp. ........................... 36,500 1,040
Mutual Risk Management, Ltd. .......................... 40,000 1,565
Provident Cos., Inc. .................................. 23,400 971
Reinsurance Group of America, Inc. - Non Voting ....... 30,000 1,823
ReliaStar Financial Corp. ............................. 21,100 973
UNUM Corp. ............................................ 10,500 613
--------
12,180
Leisure and Recreation - 1.0%
Hasbro, Inc. .......................................... 55,350 1,999
Media - Publishing - 0.4%
Central Newspapers, Inc. .............................. 10,700 764
Media - TV/Radio - 3.6%
Chancellor Media Corp. * .............................. 46,600 2,231
Clear Channel Communications, Inc. * .................. 15,100 823
Infinity Broadcasting Corp. - Cl. A * ................. 60,000 1,642
Univision Communications, Inc. - Cl. A * .............. 63,800 2,309
--------
7,005
Natural Gas Distribution - 0.4%
KN Energy, Inc. ....................................... 21,600 786
Oil - Equipment and Services - 0.2%
BJ Services Co. * ..................................... 13,000 203
Cooper Cameron Corp. * ................................ 7,200 177
--------
380
Oil and Natural Gas Exploration and Production - 1.7%
Anadarko Petroleum Corp. .............................. 14,400 445
Apache Corp. .......................................... 50,700 1,283
MCN Energy Group, Inc. ................................ 36,300 692
Noble Affiliates, Inc. ................................ 25,100 618
Santa Fe International Corp. .......................... 11,700 171
--------
3,209
Pollution Control - 1.7%
Republic Services, Inc. - Cl. A ....................... 108,400 1,999
United States Filter Corp. * .......................... 58,900 1,347
--------
3,346
Real Estate Investment Trust - 0.2%
Spieker Properties, Inc. .............................. 10,100 350
Retail - Department Stores - 4.0%
Amazon.com, Inc. * .................................... 2,700 867
Circuit City Stores, Inc. ............................. 29,100 1,453
Fred Meyer, Inc. * .................................... 28,400 1,711
Office Depot, Inc. .................................... 41,300 1,526
OfficeMax, Inc. ....................................... 16,400 201
Staples, Inc. * ....................................... 26,300 1,149
Williams-Sonoma, Inc. ................................. 22,000 887
--------
7,794
Retail - Drug Stores - 1.5%
CVS Corp. ............................................. 28,300 1,556
Rite Aid Corp. ........................................ 27,800 1,378
--------
2,934
Shoe and Apparel Manufacturing - 1.0%
WestPoint Stevens, Inc. * ............................. 63,300 1,998
Telecommunication Equipment - 3.0%
American Tower Corp. - Cl. A .......................... 81,500 2,409
Ascend Communications, Inc. ........................... 49,900 3,281
--------
5,690
Telecommunication Services - 4.3%
Global Crossing, Ltd. ................................. 46,700 2,107
ICG Communications, Inc. .............................. 55,900 1,202
Intermedia Communications, Inc. * ..................... 66,400 1,146
McLeodUSA, Inc. - Cl. A * ............................. 64,200 2,006
Qwest Communications International, Inc. * ............ 13,900 695
Tel-Save Holdings, Inc. * ............................. 73,800 1,236
--------
8,392
Telephone - 1.5%
Global TeleSystems Group, Inc. * ...................... 26,200 1,461
NEXTLINK Communications, Inc. * ....................... 50,700 1,438
--------
2,899
Transportation Services - 0.2%
Expeditors International of Washington, Inc ........... 10,100 424
--------
TOTAL COMMON STOCK- 98.1% 189,566
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.5%
Investment in joint repurchase agreement
with Swiss Bank Corp. dated 12/31/98,
4.85% due 1/4/99 (Secured by $106,507
U.S. Treasury Bonds, 7.5% due 11/15/16,
Market Value $133,134; $29,058 U.S.
Treasury Bonds, 11.75% due 2/15/10, Market
Value $40,718) ....................................... $4,878 4,878
------ --------
TOTAL INVESTMENTS- 100.6% 194,444
Payables, less cash and receivables- (0.6)% (1,112)
------ --------
NET ASSETS- 100.0% $193,332
====== ========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
78
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 $ 212
Banks - 3.7%
BankAmerica Corp. - Sub. Notes
6.5% due 03/15/06 ..................................... 150 157
First Union Corp. - Sub. Notes
8.125% due 06/24/02 ................................... 230 248
Golden West Financial Corp. - Sub. Notes
6.7% due 07/01/02 ..................................... 150 155
InterAmerican Development Bank - Debs.
8.5% due 03/15/11 ..................................... 200 255
National City Bank of Pennsylvania -
Sub. Notes
7.25% due 10/21/11 .................................... 50 55
Wells Fargo & Co. - Sub. Notes
6.875% due 04/01/06 ................................... 150 160
------
1,030
Brokerage and Investment Management - 0.8%
Merrill Lynch & Co., Inc. - Notes
8.0% due 06/01/07 ..................................... 200 226
Business Services - 0.5%
Comdisco, Inc. - Notes
6.125% due 01/15/03 ................................... 150 148
Chemicals - 1.1%
ICI Wilmington - Debs.
8.75% due 05/01/01 .................................... 300 315
Computer Equipment - 0.4%
International Business Machines Corp. - Debs.
7.0% due 10/30/25 ..................................... 100 111
Consumer - Miscellaneous - 0.4%
Fortune Brands, Inc. - Debs.
7.875% due 01/15/23 ................................... 100 117
Diversified Operations - 1.7%
Diageo Capital plc
6.125% due 08/15/05 ................................... 200 208
Tenneco Corp. - Debs.
10.2% due 03/15/08 .................................... 150 183
Tyco International Group SA
6.375% due 06/15/05 ................................... 80 82
------
473
Electric Power - 1.1%
Duke Energy Co.
6.75% due 08/01/25 .................................... 100 100
Florida Power & Light Co.
7.75% due 02/01/23 .................................... 50 52
Virginia Electric Power Co. - 1st Mortg.
7.625% due 07/01/07 ................................... 150 170
Financial Services - 4.2%
Citicorp Capital II - Bonds
8.015% due 02/15/27 ................................... 100 110
Commercial Credit Co.
5.9% due 09/01/03 ..................................... 150 151
Ford Capital B.V. - Debs.
9.5% due 06/01/10 ..................................... 150 189
General Electric Capital Corp. - Debs.
8.75% due 05/21/07 .................................... 150 182
KFW International Finance - Debs.
9.125% due 05/15/01 ................................... 300 325
Morgan Stanley, Dean Witter, Discover
& Co. - Notes
6.875% due 03/01/03 ................................... 200 208
------
1,165
Food, Beverage and Tobacco - 0.8%
Coca-Cola Enterprises, Inc. - Debs.
8.5% due 02/01/22 ..................................... 100 125
Philip Morris - Debs.
8.25% due 10/15/03 .................................... 100 110
------
235
Foreign - 0.7%
Government of Newfoundland
9.0% due 10/15/21 ..................................... 60 77
Hydro-Quebec
8.4% due 01/15/22 ..................................... 100 124
------
201
Foreign Governmental - 1.9%
Kingdom of Sweden - Debs.
12.0% due 02/01/10 .................................... 75 114
Province of Manitoba - Debs.
6.875% due 09/15/02 ................................... 200 210
Province of Ontario
8.0% due 10/17/01 ..................................... 200 214
------
538
Insurance - 1.0%
Aetna Services, Inc.
7.625% due 08/15/26 ................................... 100 101
Torchmark Corp. - Debs.
8.25% due 08/15/09 .................................... 100 116
Travelers Property Casualty Corp. - Sr. Notes
7.75% due 04/15/26 .................................... 50 56
------
273
Machinery - 0.8%
Reliance Electric Co. - Notes
6.8% due 04/15/03 ..................................... 200 211
Media - TV / Radio - 1.2%
News America Holdings, Inc. - Debs.
7.7% due 10/30/25 ..................................... 100 107
79
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Media - TV / Radio - Continued
The Walt Disney Co. - Sr. Notes
6.75% due 03/30/06 .................................... $ 200 $ 217
-------
324
Metals and Mining - 0.7%
Noranda, Inc. - Debs.
7.0% due 07/15/05 .................................... 200 195
Natural Gas Distribution - 0.7%
Enron Corp. - Notes
6.75% due 09/15/04 .................................... 100 103
Tennessee Gas Pipeline - Bonds
7.5% due 04/01/17 .................................... 100 107
-------
210
Oil - 0.4%
Tosco Corp. - Notes
7.625% due 05/15/06 .................................. 115 122
Oil and Natural Gas Exploration and Production - 0.8%
Occidental Petroleum Corp. - Sr. Notes
10.125% due 11/15/01 .................................. 155 170
Phillips Petroleum Co.
6.65% due 07/15/18 .................................... 50 51
-------
221
Paper and Forest Products - 0.6%
Bowater, Inc. - Debs.
9.0% due 08/01/09 .................................... 100 120
Champion International Corp. - Debs.
7.35% due 11/01/25 .................................... 50 51
-------
171
Personal and Commercial Lending - 1.4%
General Motors Acceptance Corp. - Notes
9.625% due 12/15/01 .................................. 350 389
Pollution Control - 0.6%
Waste Management, Inc. - Sr. Notes
7.0% due 10/01/04 .................................... 150 157
Real Estate Investment Trust - 0.1%
Spieker Properties, Inc. - Debs.
7.5% due 10/01/27 .................................... 40 38
Retail - Department Stores - 0.8%
Gap, Inc. - Notes
6.9% due 09/15/07 .................................... 100 111
Wal-Mart Stores - Debs.
6.75% due 10/15/23 .................................... 100 108
-------
219
Retail - Drug Stores - 1.1%
Rite Aid Corp. - Notes
6.7% due 12/15/01 .................................... 300 308
Retail - Food - 0.2%
McDonald's Corp. - Sub. Debs.
7.31% due 09/15/27 .................................... 60 68
Telecommunication Services - 0.4%
Bellsouth Telecommunications - Debs.
7.0% due 10/01/25 .................................... 100 112
Telephone - 2.3%
ALLTEL Corp. - Sr. Notes
7.6% due 04/01/09 .................................... 100 113
New York Telephone Co. - Debs.
7.25% due 02/15/24 .................................... 100 105
South Carolina Electric & Gas - 1st. Mtge.
7.5% due 06/15/23 .................................... 100 105
Southwestern Bell Telephone - Debs.
5.875% due 06/01/03 .................................. 100 100
Worldcom, Inc. - Sr. Notes
6.4% due 08/15/05 .................................... 200 207
-------
630
Transportation Services - 0.8%
Delta Air Lines - Debs.
10.375% due 12/15/22 .................................. 100 130
Laidlaw, Inc. - Debs.
8.75% due 04/15/25 .................................... 100 108
-------
238
U.S. Government Agencies - 12.2%
Federal Home Loan Bank
5.58% due 08/17/01 .................................... 300 304
Federal Home Loan Mortgage Corp.
5.75% due 07/15/03 .................................... 200 205
7.1% due 04/10/07 ..................................... 1,500 1,670
Federal National Mortgage Association
8.35% due 11/10/99 .................................... 1,000 1,028
Financing Corp. - Bonds
8.6% due 09/26/19 .................................... 150 202
-------
3,409
U.S. Governmental - 52.6%
U.S. Treasury - Bonds
7.625% due 11/15/22 .................................. 3,180 4,122
11.125% due 08/15/03 .................................. 2,000 2,524
U.S. Treasury - Notes
6.125% due 07/31/00 .................................. 3,300 3,373
6.5% due 05/31/02 ..................................... 2,000 2,112
6.875% due 05/15/06 ................................... 2,290 2,589
-------
14,720
-------
TOTAL PUBLICLY-TRADED BONDS- 96.8% 27,108
SHORT-TERM INVESTMENTS - 2.2%
Investment in joint trading account (Note B)
6.101% due 01/04/99 .................................. 628 628
------ -------
TOTAL INVESTMENTS- 99.0% 27,736
Cash and Receivables, less payables- 1.0% 265
------ -------
NET ASSETS- 100.0% $28,001
====== =======
See notes to financial statements.
80
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.6%
Ducommun, Inc. .................................. 450 $ 6
Esterline Technologies Corp. * .................. 200 5
Orbital Sciences Corp. * ........................ 300 13
The Fairchild Corp. - Cl. A ..................... 300 5
----------
29
Agricultural Operations - 0.2%
Agribrands International, Inc. * ................ 400 12
Auto and Truck Parts - 2.3%
Arvin Industries, Inc. .......................... 300 12
Avis Rental A Car, Inc. * ....................... 700 17
Bandag, Inc. .................................... 300 12
Cooper Tire & Rubber Co. ........................ 400 8
Cummins Engine Company, Inc. .................... 100 4
Lear Corp. * .................................... 300 12
Meritor Automotive, Inc. ........................ 400 8
Navistar International * ........................ 600 17
Standard Products Co. ........................... 900 18
Superior Industries International, Inc. ......... 200 6
----------
114
Automobile - 0.5%
Copart, Inc. .................................... 600 19
Hertz Corp. - Cl. A ............................. 100 5
----------
24
Banks - 6.8%
Associated Banc-Corp ............................ 400 14
CCB Financial Corp. ............................. 100 6
Centura Banks, Inc. ............................. 200 15
City National Corp. ............................. 600 25
Commerce Bancorp, Inc. .......................... 300 16
CORUS Bankshares, Inc. .......................... 300 10
Cullen/Frost Bankers, Inc. ...................... 300 17
Dime Bancorp, Inc. .............................. 1,300 34
First Sentinel Bancorp, Inc. .................... 1,500 12
First Virginia Banks, Inc. ...................... 200 9
Hibernia Corp. - Cl. A .......................... 300 5
Imperial Bancorp * .............................. 300 5
Independence Community Bank Corp. ............... 400 6
Mercantile Bankshares Corp. ..................... 100 4
North Fork Bancorporation, Inc. ................. 600 14
Old Kent Financial Corp. ........................ 600 28
Omega Financial Corp. ........................... 1,500 45
One Valley Bancorp, Inc. ........................ 200 7
Roslyn Bancorp, Inc. ............................ 200 4
Staten Island Bancorp, Inc. ..................... 200 4
TCF Financial Corp. ............................. 200 5
United Bankshares, Inc. ......................... 200 5
Valley National Bancorp ......................... 625 18
Zions Bancorp ................................... 500 31
----------
339
Brokerage and Investment Management - 0.7%
EVEREN Capital Corp. ............................ 300 7
Jefferies Group, Inc. ........................... 200 10
Morgan Keegan, Inc. ............................. 600 11
Waddell & Reed Financial, Inc. - Cl. A .......... 200 5
----------
33
Business Services - 1.4%
Forrester Research, Inc. * ...................... 400 17
InaCom Corp. .................................... 600 9
Interim Services, Inc. .......................... 600 14
Metzler Group, Inc. * ........................... 200 10
Resource Bancshares Mortgage Group .............. 1,200 20
----------
70
Chemicals - 1.4%
Crompton & Knowles Corp. ........................ 600 12
International Specialty Products, Inc. .......... 800 11
Millenium Chemicals, Inc. ....................... 700 14
Octel Corp. * ................................... 300 4
Sigma-Aldrich Corp. ............................. 300 9
Solutia, Inc. ................................... 600 13
Spartech Corp. .................................. 400 9
----------
72
Commercial Services - 4.0%
ACNielson Corp. * ............................... 500 14
ADVO, Inc. ...................................... 300 8
Apollo Group, Inc. - Cl. A * .................... 100 3
Concord EFS, Inc. * ............................. 600 26
Consolidated Graphics, Inc. * ................... 100 7
Deluxe Corp. .................................... 600 22
E'Town Corp. .................................... 400 19
HON INDUSTRIES, Inc. ............................ 200 5
NOVA Corp. - Georgia * .......................... 100 4
Primark Corp. ................................... 200 5
Quintiles Transnational Corp. * ................. 100 5
Snyder Communications, Inc. * ................... 300 10
StaffMark, Inc. ................................. 300 7
Standard Register Co. ........................... 300 9
Thor Industries, Inc. ........................... 400 10
True North Communications ....................... 200 5
Unisource Worldwide, Inc. ....................... 900 7
Veritas DGC, Inc. * ............................. 300 4
Wackenhut Corp. - Cl. A ......................... 700 18
World Color Press, Inc. * ....................... 400 12
----------
200
Computer Equipment - 2.7%
Apple Computer, Inc. * .......................... 500 20
Comverse Technology, Inc. * ..................... 100 7
Diebold, Inc. ................................... 400 14
FORE Systems, Inc. * ............................ 300 6
Micron Electronics, Inc. * ...................... 200 3
National Computer Systems, Inc. * ............... 400 15
NeoMagic Corp. * ................................ 300 7
Network Appliance, Inc. * ....................... 200 9
Quantum Corp. ................................... 400 9
81
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Computer Equipment - Continued
SMART Modular Technologies, Inc. * .............. 200 $ 6
Tech Data Corp. * ............................... 400 16
VERITAS Software Corp. * ........................ 200 12
Xircom, Inc. * .................................. 300 10
----------
134
Computer Software and Services - 7.1%
Acclaim Entertainment, Inc. * ................... 2,500 31
Adobe Systems, Inc. ............................. 100 5
Advent Software, Inc. * ......................... 300 14
Affiliated Computer Services, Inc. - Cl. A * .... 100 4
Autodesk, Inc. .................................. 300 13
Bell & Howell Co. * ............................. 300 11
Citrix Systems, Inc. * .......................... 100 10
DataWorks Corp. * ............................... 1,300 13
DST Systems, Inc. * ............................. 100 6
EarthLink Network, Inc. * ....................... 100 6
Evans & Sutherland Computer Corp. * ............. 400 7
Excite, Inc. * .................................. 100 4
Factset Research Systems, Inc. .................. 200 12
Fiserv, Inc. .................................... 100 5
HNC Software, Inc. .............................. 100 4
Hyperion Solutions Corp. ........................ 200 4
Intuit, Inc. * .................................. 100 7
J.D. Edwards & Co. * ............................ 100 3
Keane, Inc. * ................................... 200 8
Learning Company, Inc. .......................... 200 5
Legato Systems, Inc. * .......................... 100 7
Lycos, Inc. * ................................... 100 5
Macromedia, Inc. * .............................. 200 7
MindSpring Enterprises, Inc. * .................. 700 43
National Data Corp. ............................. 100 5
NCR Corp. * ..................................... 500 21
Netscape Communications Corp. * ................. 200 12
New Era of Networks, Inc. * ..................... 200 9
Peregrine Systems, Inc. * ....................... 100 5
Policy Management Systems Corp. * ............... 200 10
PSINet, Inc. * .................................. 300 6
Rational Software Corp. * ....................... 300 8
RealNetworks, Inc. * ............................ 100 3
Sapient Corp. ................................... 100 6
Siebel Systems, Inc. * .......................... 200 7
Sterling Software, Inc. * ....................... 200 5
SunGard Data Systems, Inc. ...................... 100 4
Synopsys, Inc. .................................. 400 22
----------
357
Construction - 2.2%
Ameron International Corp. ...................... 100 4
Armstrong World Industries, Inc. ................ 300 18
CalMat Co. ...................................... 400 12
Dycom Industries, Inc. .......................... 100 6
Granite Construction, Inc. ...................... 200 7
Lafarge Corp. ................................... 500 20
NVR, Inc. * ..................................... 200 10
Southdown, Inc. ................................. 200 12
U.S. Home Corp. * ............................... 100 3
USG Corp. * ..................................... 400 20
----------
112
Consumer - Miscellaneous - 1.8%
American Greetings Corp. - Cl. A ................ 500 21
Briggs & Stratton Corp. ......................... 200 10
Fingerhut Cos., Inc. ............................ 800 12
Herbalife International, Inc. - Cl. A ........... 700 10
Metamor Worldwide, Inc. * ....................... 400 10
Nu Skin Enterprises, Inc. - Cl. A * ............. 500 12
Personnel Group of America, Inc. ................ 600 10
Stewart Enterprises, Inc. - Cl. A ............... 300 7
----------
92
Containers - 0.2%
First Brands Corp. .............................. 100 4
Sonoco Products Co. ............................. 200 6
----------
10
Cosmetics and Personal Care Products - 0.6%
AptarGroup, Inc. ................................ 400 11
Dial Corp. ...................................... 200 6
Playtex Products, Inc. * ........................ 800 13
----------
30
Diversified Operations - 2.8%
Chemed Corp. .................................... 100 3
Coltec Industries * ............................. 300 6
Crane Co. ....................................... 200 6
Dexter Corp. .................................... 200 6
Eastern Enterprises ............................. 100 4
Gerber Scientific, Inc. ......................... 200 5
Harsco Corp. .................................... 300 9
Hawaiian Electric Industries .................... 300 12
National Service Industries, Inc. ............... 100 4
Ogden Corp. ..................................... 800 20
Pall Corp. ...................................... 500 13
Raychem Corp. ................................... 300 10
Sodexho Marriott Services, Inc. ................. 200 5
SPS Technologies, Inc. .......................... 100 6
Teleflex, Inc. .................................. 300 14
Trinity Industries, Inc. ........................ 100 4
Viad Corp. ...................................... 200 6
Westinghouse Air Brake Co. ...................... 300 7
----------
140
Electric Power - 5.2%
Allegheny Energy, Inc. .......................... 500 17
BEC Energy ...................................... 500 21
Calpine Corp. * ................................. 300 8
Central Hudson Gas & Electric Corp. ............. 100 4
Citizens Utilities Co. - Cl. B .................. 806 7
CMP Group, Inc. ................................. 1,300 25
Conectiv, Inc. .................................. 500 12
DPL, Inc. ....................................... 200 4
82
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - Continued
DQE, Inc. ....................................... 100 $ 4
Eastern Utilities Associates .................... 300 9
Idacorp, Inc. ................................... 100 4
Interstate Energy Corp. ......................... 100 3
Kansas City Power & Light Co. ................... 100 3
LG&E Energy Corp. ............................... 200 6
Montana Power Co. ............................... 100 6
Nevada Power Co. ................................ 100 3
New England Electric System ..................... 200 10
Niagara Mohawk Power Corp. ...................... 500 8
NIPSCO Industries, Inc. ......................... 500 15
Potomac Electric Power Co. ...................... 300 8
Public Service Co. of New Mexico ................ 1,000 20
Puget Sound Energy, Inc. ........................ 300 8
Rochester Gas and Electric Corp. ................ 200 6
SCANA Corp. ..................................... 100 3
Teco Energy, Inc. ............................... 300 8
United Illuminating Co. ......................... 100 5
UtiliCorp United, Inc. .......................... 400 15
Washington Water Power Co. ...................... 400 8
Western Resources, Inc. ......................... 100 3
Wisconsin Energy Corp. .......................... 200 6
----------
259
Electrical Equipment - 1.6%
American Power Conversion ....................... 300 15
Anixter International, Inc. ..................... 400 8
Best Buy Co., Inc. .............................. 400 25
EG & G, Inc. .................................... 300 8
Molex, Inc. ..................................... 300 11
Pentair, Inc. ................................... 300 12
----------
79
Electronic Products and Services - 5.8%
Aavid Thermal Technologies, Inc. * .............. 300 5
Advanced Micro Devices, Inc. * .................. 200 6
Altera Corp. * .................................. 300 18
Arrow Electronics, Inc. * ....................... 700 19
Avnet, Inc. ..................................... 200 12
Checkpoint Systems, Inc. ........................ 900 11
CHS Electronics, Inc. * ......................... 1,500 26
CTS Corp. ....................................... 400 17
Hubbell, Inc. - Cl. B ........................... 400 15
KLA-Tencor Corp. * .............................. 300 13
Microchip Technology, Inc * ..................... 200 7
National Semiconductor Corp. * .................. 400 5
PMC-Sierra, Inc. * .............................. 100 6
SCI Systems, Inc. * ............................. 100 6
Sterling Commerce, Inc. * ....................... 500 23
Stoneridge, Inc. ................................ 400 9
Storage Technology Corp. ........................ 100 4
Teradyne, Inc. * ................................ 400 17
Thomas & Betts Corp. ............................ 400 17
Uniphase Corp. * ................................ 100 7
Unitrode Corp. .................................. 300 5
Vitesse Semiconductor Corp. * ................... 200 9
Waters Corp. * .................................. 300 26
Xilinx, Inc. * .................................. 100 7
----------
290
Energy - Alternative Source - 0.3%
Energy East Corp. ............................... 300 17
Financial Services - 2.0%
Financial Federal Corp. ......................... 200 5
Finova Group, Inc. .............................. 200 11
FirstFed Financial Corp. * ...................... 500 9
GreenPoint Financial Corp. ...................... 400 14
Heller Financial, Inc. .......................... 1,200 35
Long Beach Financial Corp. ...................... 2,200 16
People's Bank - Bridgeport ...................... 400 11
----------
101
Food, Beverage and Tobacco - 1.8%
Adolph Coors Co. - Cl. B ........................ 100 6
Canandaigua Brands Inc. - Cl. A * ............... 100 6
Corn Products International, Inc. ............... 200 6
Fleming Cos., Inc. .............................. 1,500 16
Flowers Industries, Inc. ........................ 300 7
IBP, Inc. ....................................... 200 6
International Multifoods Corp. .................. 200 5
J.M. Smucker Co. ................................ 700 17
SUPERVALU, Inc. ................................. 400 11
Universal Corp. ................................. 200 7
Weis Markets, Inc. .............................. 100 4
----------
91
Health Care Products - 6.7%
Agouron Pharmaceuticals, Inc. * ................. 100 6
Allegiance Corp. ................................ 600 28
Allergan, Inc. .................................. 500 32
Alpharma, Inc. - Cl A ........................... 700 25
Barr Laboratories, Inc. * ....................... 100 5
Bausch & Lomb, Inc. ............................. 400 24
Beckman Coulter, Inc. ........................... 100 5
Bergen Brunswig Corp. - Cl. A ................... 800 28
Biomet, Inc. .................................... 200 8
Block Drug Co.- Cl. A ........................... 618 27
C.R. Bard, Inc. ................................. 200 10
Centocor, Inc. * ................................ 100 5
Chiron Corp. * .................................. 400 10
Forest Laboratories, Inc. * ..................... 200 11
Genzyme Corp. (General Division) * .............. 300 15
Haemonetics Corp. * ............................. 200 5
Landauer, Inc ................................... 300 10
Mallinckrodt, Inc. .............................. 300 9
Maxxim Medical, Inc. * .......................... 200 6
Medicis Pharmaceutical Corp. - Cl. A ............ 100 6
Mylan Laboratories, Inc. ........................ 400 12
Priority Healthcare Corp. - Cl. B ............... 700 36
Roberts Pharmaceutical Corp. * .................. 400 9
83
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Safeskin Corp. * ................................ 100 $ 2
----------
334
Health Care Services - 2.9%
AmeriPath, Inc. * ............................... 500 4
AmeriSource Health Corp. - Cl.A * ............... 400 26
Beverly Enterprises, Inc. ....................... 1,800 12
Bindley Western Industries ...................... 366 18
Biogen, Inc. * .................................. 300 25
Covance, Inc. * ................................. 200 6
HCR Manor Care, Inc. * .......................... 100 3
Integrated Health Services, Inc. ................ 700 10
Omnicare, Inc. .................................. 100 4
PacifiCare Health Systems, Inc. - Cl. B * ....... 100 8
Prime Medium Services, Inc. ..................... 1,100 8
Quest Diagnostics, Inc. * ....................... 200 4
Total Renal Care Holdings, Inc. * ............... 200 6
Trigon Healthcare, Inc. * ....................... 200 7
Universal Health Services, Inc. - Cl. B * ....... 100 5
----------
146
Household Appliances/Furnishings - 2.0%
Ethan Allen Interiors, Inc. ..................... 300 12
Herman Miller, Inc. ............................. 500 14
HomeBase, Inc. .................................. 1,400 9
Knoll, Inc. ..................................... 300 9
Mohawk Industries, Inc. * ....................... 100 4
Pillowtex Corp. ................................. 100 3
Premark International, Inc. ..................... 900 31
Shaw Industries, Inc ............................ 200 5
Springs Industries, Inc. - Cl. A ................ 300 12
----------
99
Housing - 1.8%
American Standard Cos., Inc. .................... 200 7
Centex Corp. .................................... 400 18
Champion Enterprises, Inc. * .................... 200 6
D.R. Horton, Inc. ............................... 800 18
Kaufman & Broad Home Corp. ...................... 500 14
Owens Corning ................................... 400 14
Pulte Corp. ..................................... 400 11
Toll Brothers, Inc. * ........................... 200 5
----------
93
Insurance - 4.4%
Allmerica Financial Corp. ....................... 100 6
Ambac Financial Group, Inc. ..................... 200 12
American Bankers Insurance Group, Inc. .......... 100 5
Arthur J. Gallagher & Co. ....................... 100 4
Capital Re Corp. ................................ 200 4
Delphi Financial Group, Inc. - Cl. A * .......... 204 11
Enhance Financial Services Group, Inc. .......... 400 12
Everest Reinsurance Holdings .................... 400 16
FBL Financial Group - Cl. A ..................... 900 22
Fidelity National Financial, Inc. ............... 110 3
First American Financial Corp. .................. 500 16
Fremont General Corp. ........................... 600 15
Hilb, Rogal & Hamilton Co. ...................... 200 4
LandAmerica Financial Group, Inc. ............... 100 6
Medical Assurance, Inc. ......................... 330 11
Nationwide Financial Services - Cl. A ........... 100 5
Old Republic International Corp. ................ 600 13
Perkin-Elmer Corp. .............................. 200 19
Protective Life Corp. ........................... 400 16
Reinsurance Group of America .................... 300 21
----------
221
Leisure and Recreation - 1.3%
Brunswick Corp. ................................. 200 5
Dover Downs Entertainment * ..................... 600 7
Electronic Arts, Inc. * ......................... 200 11
Harveys Casino Resorts .......................... 200 6
International Game Technology ................... 200 5
Metro-Goldwyn-Mayer, Inc. (MGM) * ............... 400 5
Promus Hotel Corp. * ............................ 300 10
Sunburst Hospitality Corp. ...................... 2,900 12
WMS Industries, Inc. ............................ 700 5
----------
66
Machinery - 1.3%
Chart Industries, Inc. .......................... 1,600 12
Commercial Intertech Corp. ...................... 700 9
Gleason Corp. ................................... 400 7
Imation Corp. * ................................. 600 11
JLG Industries, Inc. ............................ 400 6
NACCO Industries, Inc. - Cl. A .................. 200 19
----------
64
Media - Publishing - 1.3%
Big Flower Holdings, Inc. * ..................... 500 11
McClatchy Newspapers, Inc. ...................... 800 28
Meredith Corp. .................................. 100 4
Pulitzer Publishing Co. ......................... 200 17
Warnaco Group, Inc. - Cl. A ..................... 200 5
----------
65
Media - TV/Radio - 1.3%
A.H. Belo Corp. - Common Ser. A ................. 400 8
Adelphia Communications Corp. - Cl. A ........... 200 9
Chancellor Media Corp. * ........................ 200 10
Hearst-Argyle Television, Inc. * ................ 300 10
Jacor Communications, Inc. * .................... 100 6
King World Productions, Inc. * .................. 300 9
USA Networks, Inc. * ............................ 400 13
----------
65
Metal Product and Fabrication - 0.1%
Ryerson Tull, Inc. - Cl. A ...................... 500 5
Metals and Mining - 0.8%
Asarco, Inc. .................................... 500 8
Chase Industries, Inc. .......................... 300 3
Cyprus Amax Minerals Co. ........................ 1,100 11
84
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Metals and Mining - Continued
Phelps Dodge Corp. .............................. 200 $ 10
Precision Castparts Corp. ....................... 200 9
----------
41
Natural Gas Distribution - 0.7%
KeySpan Energy .................................. 440 14
Peoples Energy Corp. ............................ 100 4
Piedmont Natural gas Co. ........................ 100 3
UGI Corp. ....................................... 500 12
----------
33
Oil - Equipment and Services - 0.8%
Berry Petroleum Co. ............................. 300 4
BJ Services Co. * ............................... 600 9
Daniel Industries, Inc. ......................... 500 6
Pool Energy Services Co. * ...................... 900 10
SEACOR SMIT, Inc. ............................... 100 5
Tidewater, Inc. ................................. 300 7
----------
41
Oil and Natural Gas Exploration and Production - 2.5%
Apache Corp. .................................... 500 13
Cabot Oil & Gas Corp. - Cl. A ................... 200 3
Devon Energy Corp. .............................. 100 3
Enron Oil & Gas Co. ............................. 300 5
Helmerich & Payne, Inc. ......................... 200 4
Kerr-McGee Corp. ................................ 600 23
Murphy Oil Corp. ................................ 700 29
Noble Affiliates, Inc. .......................... 200 5
PennzEnergy Co. ................................. 100 1
Pennzoil-Quaker State Co. * ..................... 100 1
Snyder Oil Corp. ................................ 200 3
Sunoco, Inc. .................................... 500 18
Ultramar Diamond Shamrock Corp. ................. 400 10
Valero Energy Corp. ............................. 400 8
----------
126
Paper and Forest Products - 1.6%
Boise Cascade Corp. ............................. 100 3
Consolidated Papers, Inc. ....................... 200 5
Louisiana-Pacific Corp. ......................... 200 4
Mead Corp. ...................................... 300 9
Potlatch Corp. .................................. 400 15
Rayonier, Inc. .................................. 300 14
Temple-Inland, Inc. ............................. 300 18
Westvaco Corp. .................................. 500 13
----------
81
Personal and Commercial Lending - 0.9%
Countrywide Credit Industries, Inc. ............. 200 10
Fund American Enterprises Holdings, Inc. ........ 200 28
IMC Mortgage Co. * .............................. 1,800
Metris Cos., Inc. ............................... 159 8
----------
46
Pollution Control - 0.4%
Allied Waste Industries, Inc. * ................. 300 7
Aqua Alliance, Inc. ............................. 2,800 6
United States Filter Corp. * .................... 300 7
----------
20
Precious Metals/Gems/Stones - 0.4%
Freeport-McMoRan Copper & Gold .................. 1,200 13
Homestake Mining Co. ............................ 800 7
----------
20
Real Estate Development - 0.6%
Lennar Corp. .................................... 500 13
Ryland Group, Inc. .............................. 600 17
----------
30
Real Estate Operations - 0.1%
Security Capital Group, Inc. - Cl. B * .......... 400 5
Retail - Department Stores - 5.0%
99 Cents Only Stores * .......................... 125 6
Abercrombie & Fitch Co. * ....................... 200 14
Ames Department Stores, Inc. * .................. 300 8
AnnTaylor Stores Corp. * ........................ 200 8
Bed Bath & Beyond, Inc. * ....................... 300 10
BJ's Wholesale Club, Inc. ....................... 100 5
Blair Corp. ..................................... 1,000 22
Borders Group, Inc. * ........................... 200 5
Department 56, Inc. ............................. 300 11
Dollar Tree Stores, Inc. * ...................... 200 9
Family Dollar Stores, Inc. ...................... 200 4
Genesco, Inc. ................................... 1,700 10
Goody's Family Clothing, Inc. ................... 800 8
Hollywood Entertainment Corp. * ................. 400 11
JLK Direct Distribution, Inc. * ................. 500 5
Jo-Ann Stores, Inc. ............................. 200 3
Linens 'N Things, Inc. * ........................ 200 8
Michaels Stores, Inc. * ......................... 200 4
Musicland Stores Corp. * ........................ 300 5
Neiman Marcus Group, Inc. * ..................... 500 12
Office Depot, Inc. .............................. 200 7
Ross Stores, Inc. ............................... 100 4
Saks, Inc. ...................................... 500 16
Talbots, Inc. ................................... 200 6
Transport World Entertainment Corp. * ........... 500 10
Williams-Sonoma, Inc. ........................... 400 16
Zale Corp. * .................................... 800 26
----------
253
Retail - Drug Stores - 0.1%
Longs Drug Stores, Inc. ......................... 100 4
Retail - Food - 1.4%
Brinker International, Inc. * ................... 800 23
CKE Restaurants, Inc. ........................... 220 7
Darden Restaurants, Inc. ........................ 400 7
Interstate Bakeries ............................. 200 5
Luby's Cafeterias, Inc. ......................... 200 3
Michael Foods, Inc. ............................. 400 12
85
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Retail - Food - Continued
Outback Steakhouse, Inc. * ...................... 100 $ 4
The Great Atlantic & Pacific Tea Company, Inc. .. 200 6
Wendy's International, Inc. ..................... 200 4
----------
71
Shoe and Apparel Manufacturing - 0.7%
Burlington Industries, Inc. * ................... 1,400 15
Jones Apparel Group, Inc. * ..................... 300 7
Kellwood Co. .................................... 200 5
Liz Claiborne, Inc. ............................. 100 3
Russell Corp. ................................... 200 4
WestPoint Stevens, Inc. * ....................... 100 3
----------
37
Steel - 1.2%
AK Steel Holding Corp. .......................... 800 19
Bethleham Steel Corp. * ......................... 1,500 12
Citation Corp. .................................. 600 7
LTV Corp. ....................................... 1,200 7
National Steel Corp. - Cl. B * .................. 1,500 11
USX-US Steel Group, Inc. ........................ 200 5
----------
61
Telecommunication Equipment - 2.4%
AFC Cable Systems, Inc. ......................... 400 13
American Tower Corp. - Cl. A .................... 200 6
Aspect Telecommunications ....................... 500 9
Brightpoint, Inc. * ............................. 400 6
General Instrument Corp. * ...................... 500 17
GeoTel Communications Corp. * ................... 200 7
Paging Network, Inc. * .......................... 1,000 5
Plantronics, Inc. * ............................. 100 9
QUALCOMM, Inc. * ................................ 600 31
RELTEC Corp. * .................................. 200 4
Scientific-Atlanta, Inc. ........................ 300 7
Symbol Technologies, Inc. ....................... 100 6
----------
120
Telecommunication Services - 1.5%
COMSAT Corp. .................................... 200 7
United States Cellular Corp. * .................. 1,000 38
West TeleServices Corp. * ....................... 1,800 17
Winstar Communications, Inc. * .................. 300 12
----------
74
Telephone - 0.6%
Aliant Communications, Inc. ..................... 100 4
NEXTLINK Communications, Inc. * ................. 200 6
Telephone and Data Systems, Inc. ................ 400 18
----------
28
Transportation Services - 1.8%
Airbourne Freight Corp. ......................... 500 18
Alaska Air Group, Inc. * ........................ 200 9
America West Holdings Corp. - Cl. B * ........... 500 8
CNF Transportation, Inc. ........................ 200 8
COMAIR Holdings, Inc. ........................... 100 3
Continental Airlines, Inc. - Cl. B * ............ 300 10
GATX Corp. ...................................... 700 27
Ryder System, Inc. .............................. 300 8
----------
91
----------
TOTAL COMMON STOCK- 98.6% 4,945
---------- ----------
TOTAL INVESTMENTS- 98.6% 4,945
Cash and Receivables, less payables- 1.4% 70
---------- ----------
NET ASSETS- 100.0% $ 5,015
========== ==========
* Non-income producing security.
See notes to financial statements.
86
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Real Estate Development - 2.8%
Catellus Development Corp. * .................... 300,000 4,294
Real Estate Investment Trust - 95.8%
Avalonbay Communities, Inc. ..................... 185,245 6,345
Bradley Real Estate, Inc. ....................... 165,000 3,383
Brandywine Realty Trust ......................... 240,000 4,290
BRE Properties, Inc. ............................ 225,000 5,569
Burnham Pacific Properties, Inc. ................ 190,000 2,292
Camden Property Trust ........................... 175,000 4,550
CarrAmerica Realty Corp. ........................ 150,000 3,600
Chateau Communities, Inc. ....................... 158,180 4,637
Cousins Properties, Inc. ........................ 106,000 3,419
Crescent Real Estate Equities, Inc. ............. 185,000 4,255
Developers Diversified Realty Corp. ............. 230,000 4,082
Duke Realty Investments, Inc. ................... 225,000 5,231
Equity Office Properties Trust .................. 253,093 6,074
Equity Residential Properties Trust ............. 175,000 7,077
Franchise Finance Corp. of America .............. 113,000 2,712
Glimcher Realty Trust ........................... 159,900 2,508
Highwoods Properties, Inc. ...................... 100,000 2,575
JDN Realty Corp. ................................ 200,000 4,312
JP Realty, Inc. ................................. 135,000 2,649
Kilroy Realty Corp. ............................. 165,000 3,795
Kimco Realty Corp. .............................. 100,000 3,969
Liberty Property Trust .......................... 190,000 4,679
Mack-Cali Realty Corporation .................... 125,000 3,859
MGI Properties, Inc. ............................ 40,000 1,118
Patriot American Hospitality, Inc. .............. 188,004 1,128
Post Properties, Inc. ........................... 124,700 4,793
Prentiss Properties Trust ....................... 200,000 4,462
Prologis Trust .................................. 150,059 3,114
Public Storage, Inc. ............................ 135,000 3,653
Regency Realty Corp. ............................ 160,000 3,560
Simon Property Group, Inc. ...................... 155,000 4,417
Spieker Properties, Inc. ........................ 114,000 3,947
Starwood Hotels & Resorts ....................... 105,000 2,382
Storage USA, Inc. ............................... 144,000 4,653
Sun Communities, Inc. ........................... 90,000 3,133
Sunstone Hotel Investors, Inc. .................. 200,000 1,888
Vornado Realty Trust ............................ 110,000 3,713
Weeks Corp. ..................................... 160,600 4,527
----------
146,350
----------
TOTAL COMMON STOCK- 98.6% 150,644
Name of Issuer Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 0.8%
Investment in joint trading account (Note B)
6.101% due 01/04/99 ........................... $ 1,264 $ 1,264
---------- ----------
TOTAL INVESTMENTS- 99.4% 151,908
Cash and Receivables, less payables- 0.6% 881
---------- ----------
NET ASSETS- 100.0% $ 152,789
---------- ----------
* Non-income producing security.
See notes to financial statements.
87
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.7%
Lockheed Martin Corp. ........................... 157,800 $ 13,374
United Technologies Corp. ....................... 802,300 87,250
-------------
100,624
Auto and Truck Parts - 0.8%
Dana Corp. ...................................... 440,800 18,018
Lear Corp. *..................................... 298,600 11,496
-------------
29,514
Automobile - 1.5%
Ford Motor Co. .................................. 920,300 54,010
Banks - 6.4%
Bank of New York Co., Inc. ...................... 483,400 19,457
Bank One Corp. ................................... 145,100 7,409
BankAmerica Corp. ............................... 708,536 42,601
Comerica, Inc. .................................. 534,400 36,439
First Union Corp. ............................... 616,000 37,461
State Street Corp................................ 100,000 6,956
U.S. Bancorp .................................... 317,600 11,275
Wells Fargo & Co. ............................... 1,852,500 73,984
-------------
235,582
Brokerage and Investment Management - 0.9%
Morgan Stanley, Dean Witter, Discover
& Co. .......................................... 444,200 31,538
Chemicals - 1.3%
Air Products & Chemicals, Inc. .................. 1,079,800 43,192
Solutia, Inc. ................................... 288,100 6,446
-------------
49,638
Computer Equipment - 6.5%
Compaq Computer Corp. ........................... 945,000 39,631
Dell Computer Corp. * ........................... 476,000 34,837
Intel Corp. ..................................... 591,300 70,106
International Business Machines Corp. ........... 306,800 56,681
Xerox Corp. ..................................... 330,200 38,964
-------------
240,219
Computer Software and Services - 5.9%
Cadence Design Systems, Inc. * .................. 559,900 16,657
Computer Associates International, Inc........... 637,500 27,173
First Data Corp. ................................ 750,100 23,769
Microsoft Corp. ................................. 1,046,300 145,109
Sun Microsystems, Inc. * ........................ 49,100 4,204
-------------
216,912
Consumer - Miscellaneous - 1.2%
Avery Dennison Corp. ............................ 307,300 13,848
Honeywell, Inc. ................................. 262,200 19,747
Unilever NV - NY Shares ......................... 110,500 9,164
-------------
42,759
Containers - 0.3%
Smurfit-Stone Container Corp. * ................. 775,000 12,255
Cosmetics and Personal Care Products - 3.0%
Avon Products, Inc. ............................. 672,200 29,745
Colgate-Palmolive Co. ........................... 150,500 13,978
Dial Corp. ...................................... 764,400 22,072
Procter & Gamble Co. ............................ 486,500 44,423
-------------
110,218
Diversified Operations - 6.3%
General Electric Co. ............................ 1,378,900 140,734
Ogden Corp. ..................................... 416,400 10,436
Textron, Inc. ................................... 137,500 10,441
Tyco International, Ltd. ........................ 914,000 68,950
-------------
230,561
Electric Power - 3.8%
Ameren Corp. .................................... 518,700 22,142
Dominion Resources, Inc. ........................ 526,600 24,619
Florida Progress Corp. .......................... 819,300 36,715
FPL Group, Inc. ................................. 627,100 38,645
Houston Industries, Inc. ........................ 489,500 15,725
-------------
137,846
Electronic Products and Services - 2.7%
Cisco Systems, Inc. * ........................... 546,150 50,690
Pitney Bowes, Inc. .............................. 727,500 48,060
-------------
98,750
Financial Services - 3.8%
American Express Co. ............................ 117,600 12,024
Associates First Capital Corp. - Cl A ........... 500,792 21,221
Citigroup, Inc. ................................. 2,176,600 107,742
-------------
140,987
Food, Beverage and Tobacco - 3.7%
H.J. Heinz Co. .................................. 292,900 16,586
PepsiCo, Inc. ................................... 896,200 36,688
Philip Morris Cos., Inc. ........................ 892,200 47,733
Quaker Oats Co. ................................. 375,700 22,354
Universal Foods Corp. ........................... 467,800 12,835
-------------
136,196
Health Care Products - 11.6%
Abbott Laboratories ............................. 1,058,000 51,842
Amgen, Inc. * ................................... 95,000 9,933
Becton, Dickinson & Co. ......................... 339,800 14,505
Bristol-Myers Squibb Co. ........................ 481,700 64,458
Cardinal Health, Inc. ........................... 872,350 66,190
Glaxo Wellcome plc - ADR ........................ 223,200 15,512
Guidant Corp. ................................... 312,500 34,453
Hillenbrand Industries, Inc. .................... 134,900 7,672
Johnson & Johnson ............................... 86,500 7,255
McKesson Corp. .................................. 112,100 8,863
Merck & Co., Inc. ............................... 393,200 58,071
Mylan Laboratories, Inc. ........................ 800,000 25,200
Pfizer, Inc. .................................... 222,700 27,935
88
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Schering-Plough Corp. ........................... 430,800 $ 23,802
Sepracor, Inc. * ................................ 101,200 8,918
-------------
424,609
Health Care Services - 1.5%
HEALTHSOUTH Corp. * ............................. 1,588,700 24,525
Lincare Holdings, Inc. .......................... 296,300 12,019
Wellpoint Health Networks, Inc. * ............... 199,700 17,374
-------------
53,918
Housing - 0.4%
Masco Corp. ..................................... 460,600 13,242
Insurance - 5.0%
Allstate Corp. .................................. 615,600 23,778
American International Group, Inc................ 373,200 36,060
Cigna Corp. ..................................... 286,500 22,150
Hartford Financial Services Group, Inc........... 616,800 33,847
Hartford Life, Inc. - Cl. A ..................... 165,200 9,623
Marsh & McLennan Cos., Inc. ..................... 650,700 38,025
Travelers Property Casualty Corp. - Cl. A 659,700 20,451
-------------
183,934
Machinery - 0.5%
Ingersoll-Rand Co. .............................. 407,250 19,115
Media - Publishing - 0.2%
Warnaco Group, Inc. - Cl. A ..................... 282,300 7,128
Media - TV / Radio - 1.2%
Viacom, Inc. - Cl. B * .......................... 607,500 44,955
Natural Gas Distribution - 0.4%
Consolidated Natural Gas Co. .................... 297,100 16,043
Oil - Equipment and Services - 0.9%
Halliburton Co. ................................. 819,100 24,266
Schlumberger, Ltd. .............................. 207,300 9,562
-------------
33,828
Oil and Natural Gas Exploration and Production - 2.3%
BP Amoco plc - ADR .............................. 272,100 24,387
Exxon Corp. ..................................... 281,600 20,592
Phillips Petroleum Co. .......................... 525,100 22,382
USX-Marathon Group .............................. 518,100 15,608
-------------
82,969
Paper and Forest Products - 0.3%
Fort James Corp. ................................ 271,300 10,852
Pollution Control - 0.7%
Waste Management, Inc. .......................... 520,700 24,278
Retail - Department Stores - 5.8%
Dayton-Hudson Corp. ............................. 243,600 13,215
Home Depot, Inc. ................................ 1,473,100 90,135
Lowe's Cos., Inc. ............................... 739,600 37,858
Tandy Corp. ..................................... 347,200 14,300
TJX Cos., Inc. .................................. 861,400 24,981
Wal-Mart Stores, Inc. ........................... 402,500 32,779
-------------
213,268
Retail - Food - 0.9%
Albertson's, Inc. ............................... 525,300 33,455
Shoe and Apparel Manufacturing - 0.2%
Tommy Hilfiger Corp. * .......................... 147,000 8,820
Telecommunication Equipment - 3.6%
Lucent Technologies, Inc. ....................... 779,900 85,789
Northern Telecom, Ltd. .......................... 510,400 25,584
Tellabs, Inc. * ................................. 304,700 20,891
-------------
132,264
Telephone - 9.7%
Ameritech Corp. ................................. 196,300 12,441
AT&T Corp. ...................................... 837,000 62,984
Bell Atlantic Corp. ............................. 858,400 45,495
BellSouth Corp. ................................. 708,400 35,331
GTE Corp. ....................................... 959,100 62,342
MCI WorldCom, Inc. .............................. 1,397,400 100,263
SBC Communications, Inc. ........................ 678,000 36,358
-------------
355,214
Transportation Services - 1.9%
AMR Corp. * ..................................... 319,400 18,964
Burlington Northern Santa Fe .................... 828,600 27,965
Southwest Airlines Co. .......................... 272,050 6,104
U.S. Airways Group, Inc. * ...................... 176,700 9,189
UAL Corp. ....................................... 145,600 8,691
-------------
70,913
U.S. Government Agencies - 1.7%
Federal National Mortgage Assoc ................. 828,600 61,317
-------------
TOTAL COMMON STOCK- 99.6% 3,657,731
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.4%
Investment in joint trading account (Note B)
6.101% due 01/04/99 ............................ $ 14,371 14,373
---------- -------------
TOTAL INVESTMENTS- 100.0% 3,672,104
Payables, less cash and receivables- 0.0% (1,319)
---------- -------------
NET ASSETS- 100.0% $ 3,670,785
========== =============
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial ststements.
89
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.1%
B.F. Goodrich Co. (US) ......................... 156,300 $ 5,607
Lockheed Martin Corp. (US) ...................... 145,700 12,348
United Technologies Corp. (US) .................. 478,600 52,048
----------
70,003
Auto and Truck Parts - 0.7%
Dana Corp. (US) ................................. 109,300 4,468
Federal-Mogul Corp. (US) ........................ 193,700 11,525
Lear Corp. * (US) ............................... 71,700 2,760
Meritor Automotive, Inc. (US) ................... 152,400 3,229
----------
21,982
Automobile - 0.7%
Ford Motor Co. (US) ............................. 415,900 24,408
Banks - 5.0%
Bank of New York Co., Inc. (US) ................. 195,800 7,881
Bank One Corp. (US) ............................. 296,336 15,132
BankAmerica Corp. (US) .......................... 721,440 43,377
Comerica, Inc. (US) ............................. 342,900 23,381
Fifth Third Bancorp (US) ........................ 129,900 9,263
First Union Corp. (US) .......................... 215,300 13,093
State Street Corp. (US) ......................... 60,000 4,174
Wells Fargo & Co. (US) .......................... 1,245,800 49,754
----------
166,055
Chemicals - 0.6%
Air Products & Chemicals, Inc. (US) ............. 235,800 9,432
Solutia, Inc. (US) .............................. 441,900 9,888
----------
19,320
Commercial Services - 0.2%
Omnicom Group Inc. (US) ......................... 85,000 4,930
Computer Equipment - 4.0%
Compaq Computer Corp. (US) ..................... 898,300 37,672
Dell Computer Corp. * (US) ...................... 178,800 13,086
Intel Corp. (US) ................................ 355,300 42,125
International Business Machines Corp. (US) ...... 210,000 38,798
----------
131,681
Computer Software and Services - 3.3%
Autodesk, Inc. (US) ............................. 93,300 3,983
Cadence Design Systems, Inc. * (US) ............. 316,700 9,422
Computer Associates International, Inc.
(US) ........................................ 435,850 18,578
Microsoft Corp. (US) ............................ 565,200 78,386
----------
110,369
Consumer - Miscellaneous - 1.5%
Honeywell, Inc. (US) ........................... 256,600 19,325
Service Corp. International (US) ................ 400,000 15,225
Unilever NV - NY Shares (US) .................... 170,000 14,100
----------
48,650
Cosmetics and Personal Care Products - 2.1%
Avon Products, Inc. (US) ....................... 278,400 12,319
Colgate-Palmolive Co. (US) ...................... 188,200 17,479
Dial Corp. (US) ................................. 340,100 9,820
Procter & Gamble Co. (US) ....................... 306,700 28,006
Revlon, Inc. - Cl. A * (US) ..................... 116,200 1,910
----------
69,534
Diversified Operations - 3.8%
General Electric Co. (US) ....................... 693,000 70,729
Reynolds & Reynolds Co. - Cl. A (US) ............ 186,800 4,285
Textron, Inc. (US) .............................. 117,000 8,884
Tyco International, Ltd. (US) ................... 544,500 41,076
----------
124,974
Electric Power - 2.4%
Ameren Corp. (US) ............................... 119,800 5,114
Dominion Resources, Inc. (US) ................... 252,000 11,781
DQE, Inc. (US) .................................. 113,300 4,978
Florida Progress Corp. (US) ..................... 142,000 6,363
FPL Group, Inc. (US) ............................ 304,700 18,777
Houston Industries, Inc. (US) ................... 220,000 7,068
New Century Energies, Inc. (US) ................. 200,000 9,750
Peco Energy Co. (US) ............................ 376,300 15,664
----------
79,495
Electronic Products and Services - 1.5%
Analog Devices, Inc. * (US) ..................... 1
Cisco Systems, Inc. * (US) ...................... 254,450 23,616
Pitney Bowes, Inc. (US) ......................... 367,000 24,245
----------
47,861
Financial Services - 2.1%
American Express Co. (US) ....................... 73,600 7,525
Associates First Capital Corp. - Cl. A * (US) ... 218,002 9,238
Citigroup, Inc. (US) ............................ 1,082,500 53,584
----------
70,347
Food, Beverage and Tobacco - 3.3%
Flowers Industries, Inc. (US) ................... 347,400 8,316
General Mills, Inc. (US) ........................ 140,500 10,924
H.J. Heinz Co. (US) ............................. 137,800 7,803
PepsiCo, Inc. (US) .............................. 616,400 25,234
Philip Morris Cos., Inc. (US) ................... 527,200 28,205
Quaker Oats Co. (US) ............................ 291,500 17,344
Universal Foods Corp. (US) ...................... 442,400 12,138
----------
109,964
Health Care Products - 7.5%
Abbott Laboratories (US) ....................... 446,900 21,898
Amgen, Inc. * (US) .............................. 240,400 25,137
Becton, Dickinson & Co. (US) .................... 166,500 7,107
Bristol-Myers Squibb Co. (US) ................... 232,500 31,111
Cardinal Health, Inc. (US) ...................... 527,850 40,051
Eli Lilly & Co. (US) ............................ 99,900 8,879
Guidant Corp. (US) .............................. 29,600 3,263
Johnson & Johnson (US) .......................... 43,400 3,640
McKesson Corp. (US) ............................. 82,900 6,554
Merck & Co., Inc. (US) .......................... 234,100 34,574
Mylan Laboratories, Inc. (US) ................... 180,000 5,670
90
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - Continued
Pfizer, Inc. (US) ................................ 201,500 $ 25,276
Schering-Plough Corp. (US) ....................... 330,000 18,232
Sepracor, Inc. * (US) ............................ 60,500 5,332
Warner-Lambert Co. (US) .......................... 150,000 11,278
----------
248,002
Health Care Services - 1.2%
Health Management Associates, Inc. - Cl. * (US) .. 247,500 5,352
HEALTHSOUTH Corp. * (US) ......................... 1,617,100 24,964
Lincare Holdings, Inc. (US) ...................... 164,800 6,685
Universal Health Services, Inc. - Cl.B*(US)....... 65,000 3,372
----------
40,373
Housing - 0.2%
Masco Corp. (US) ................................ 224,400 6,452
Insurance - 3.7%
Allstate Corp. (US) .............................. 347,000 13,403
American International Group, Inc. (US) .......... 260,925 25,212
Cigna Corp. (US) ................................. 240,000 18,555
Equitable Cos., Inc. (US) ........................ 75,000 4,341
Hartford Financial Services Group, Inc.
(US) ........................................ 551,300 30,252
Hartford Life, Inc. - Cl. A (US) ................. 100,000 5,825
Marsh & McLennan Cos., Inc. (US) ................. 355,950 20,801
Travelers Property Casualty Corp. - Cl. A
(US) ......................................... 169,900 5,267
----------
123,656
Machinery - 0.5%
Deere & Co. (US) ................................ 182,600 6,049
Ingersoll-Rand Co. (US) .......................... 221,200 10,382
----------
16,431
Media - TV / Radio - 0.4%
Viacom, Inc. - Cl. B * (US) ...................... 167,200 12,373
Natural Gas Distribution - 0.3%
Consolidated Natural Gas Co. (US) ................ 171,600 9,266
Oil - Equipment and Services - 0.4%
Halliburton Co. (US) ............................ 488,800 14,481
Oil and Natural Gas Exploration and Production - 2.2%
British Petroleum Co. plc - ADR (GB) ............ 152,800 13,695
Chevron Corp. (US) ............................... 33,800 2,803
Exxon Corp. (US) ................................. 75,000 5,484
Mobil Corp. (US) ................................. 156,000 13,591
Phillips Petroleum Co. (US) ...................... 351,900 15,000
Texaco, Inc. (US) ................................ 181,500 9,597
USX-Marathon Group (US) .......................... 408,400 12,303
----------
72,473
Paper and Forest Products - 0.2%
Fort James Corp. (US) ............................ 158,000 6,320
Personal and Commercial Lending - 0.1%
Household International, Inc. (US) .............. 86,700 3,436
Pollution Control - 0.3%
Waste Management, Inc. (US) ...................... 225,400 10,509
Retail - Department Stores - 4.0%
Home Depot, Inc. (US) ............................ 856,700 52,419
Lowe's Cos., Inc. (US) ........................... 389,000 19,912
Sears, Roebuck & Co. (US) ........................ 80,000 3,400
Staples, Inc. * (US) ............................. 102,337 4,471
Tandy Corp. (US) ................................. 402,700 16,586
TJX Cos., Inc. (US) .............................. 377,400 10,945
Wal-Mart Stores, Inc. (US) ....................... 295,600 24,073
----------
131,806
Retail - Food - 0.5%
Albertson's, Inc. (US) .......................... 240,000 15,285
Shoe and Apparel Manufacturing - 0.6%
Jones Apparel Group, Inc. * (US) ................ 291,800 6,438
Tommy Hilfiger Corp. * (US) ...................... 214,700 12,882
----------
19,320
Telecommunication Equipment - 2.0%
Lucent Technologies, Inc. (US) .................. 347,074 38,178
Northern Telecom, Ltd. (US) ...................... 376,800 18,887
Tellabs, Inc. * (US) ............................. 133,700 9,167
----------
66,232
Telephone - 5.4%
Ameritech Corp. (US) ............................ 150,000 9,506
AT&T Corp. (US) .................................. 453,400 34,118
Bell Atlantic Corp. (US) ......................... 344,400 18,253
BellSouth Corp. (US) ............................. 746,200 37,217
GTE Corp. (US) ................................... 139,300 9,054
MCI WorldCom, Inc. (US) .......................... 772,300 55,413
SBC Communications, Inc. (US) .................... 260,300 13,959
----------
177,520
Transportation Services - 1.3%
AMR Corp. * (US) ................................ 100,800 5,985
Burlington Northern Santa Fe (US) ................ 415,500 14,023
Canadian Pacific, Ltd. (CA) ...................... 177,900 3,358
Delta Air Lines, Inc. (US) ....................... 80,000 4,160
Kansas City Southern Industries, Inc. (US) ....... 139,300 6,852
UAL Corp. (US) ................................... 145,800 8,702
----------
43,080
U.S. Government Agencies - 1.2%
Federal National Mortgage Assoc. (US) ............ 539,700 39,938
----------
TOTAL COMMON STOCK- ........... 65.3% 2,156,526
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Automobile - 0.5%
Ford Motor Co. - Bonds (US)
6.625% due 10/01/28 ............................. $ 17,800 18,314
91
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Banks - 1.3%
Banponce Financial Corp. Mountain Bank
Ent - Ser C. (US)
6.58% due 11/25/03 ............................. $ 11,040 $ 11,123
European Investment Bank - Sr. Unsub.
(LU)
6.0% due 11/26/04 .............................. 1,800 3,158
International Bank Reconstruction &
Development - Debs (US)
9.25% due 07/20/07 ............................. 740 1,602
4.5% due 06/20/00 .............................. 1,165,000 10,877
4.5% due 03/20/03 .............................. 1,030,000 10,334
4.75% due 12/20/04 ............................. 300,000 3,117
International Bank Reconstruction &
Development - Notes (US)
200.0% due 02/18/08 ............................ 200,000 1,760
----------
41,971
Consumer - Miscellaneous - 0.6%
Loewen Group International, Inc. (US)
7.2% due 06/01/03 .............................. 23,000 18,860
Financial Services - 3.5%
Advanta Corp. - Notes Ser. C (US)
7.075% due 09/15/99 ............................ 11,300 11,042
Amresco Commercial Mortgage Funding I
- Ser. 1997-C1 Cl. A3 (US)
7.19% due 06/17/29 ............................. 6,980 7,539
Baden-Wurttemberg L-Finance BV (DE)
6.75% due 06/22/05 ............................. 9,500 6,586
Banponce Trust I - Cap. Secs. (US)
8.327% due 02/01/27 ............................ 25,355 25,620
Capital One Financial - Notes (US)
7.25% due 12/01/03 ............................. 10,000 10,064
Chase Commercial Mortgage Securities
Corp. - Ser. 1997-1 Cl. A2 (US)
7.37% due 02/19/07 ............................. 13,300 14,343
Citibank Credit Card Master Trust I -
Notes (US)
5.85% due 04/10/03 ............................. 29,235 29,526
KFW International Finance - Debs. (US)
10.625% due 09/03/01 ........................... 1,600 2,983
Mortgage Capital Funding, Inc. - Ser.
1996 - MC2 Cl. A1 (US)
6.758% due 02/20/04 ............................ 8,346 8,624
----------
116,327
Foreign - 0.5%
Hydro-Quebec - Bonds (CA)
10.875% due 07/25/01 ........................... 500 372
Ontario-Hydro (CA)
9.0% due 06/24/02 .............................. 3,450 2,543
Queensland Treasury (AU)
8.0% due 08/14/01 .............................. 1,400 932
8.0% due 09/14/07 .............................. 1,520 1,099
Treuhandanstalt (DE)
7.75% due 10/01/02 ............................. 14,850 10,278
----------
15,224
Foreign Governmental - 4.1%
Federal Republic of Germany - Debs.
(DE)
6.0% due 06/20/16 .............................. 7,700 5,424
9.0% due 10/20/00 .............................. 20,000 13,203
Government of Canada - Debs. (CA)
7.5% due 03/01/01 .............................. 1,300 896
9.75% due 06/01/21 ............................. 1,940 2,017
11.0% due 06/01/09 ............................. 1,350 1,313
12.0% due 03/01/05 ............................. 1,400 1,260
Government of France - Bonds (FR)
4.0% due 01/12/00 .............................. 13,500 2,436
7.5% due 04/25/05 .............................. 21,000 4,589
8.5% due 04/25/03 .............................. 40,500 8,701
8.5% due 04/25/23 .............................. 26,200 7,257
9.5% due 01/25/01 .............................. 20,500 4,122
10.0% due 05/27/00 ............................. 6,000 1,171
Government of Japan - Bonds (JP)
2.3% due 09/20/18 .............................. 665,000 5,437
Government of Netherlands - Bonds (NL)
7.5% due 04/15/10 .............................. 2,900 2,021
7.75% due 03/01/05 ............................. 1,500 976
8.25% due 02/15/02 ............................. 800 487
8.75% due 05/01/00 ............................. 2,100 1,197
8.75% due 01/15/07 ............................. 5,400 3,836
Government of Sweden - Debs. (SE)
6.5% due 10/25/06 .............................. 3,000 429
6.75% due 05/05/14 ............................. 5,500 849
10.25% due 05/05/00 ............................ 8,100 1,082
10.25% due 05/05/03 ............................ 9,600 1,484
Kingdom of Denmark - Bonds (DK)
7.0% due 11/10/24 .............................. 4,600 925
8.0% due 05/15/03 .............................. 7,000 1,277
9.0% due 11/15/00 .............................. 13,100 2,245
Kingdom of Spain - Notes (ES)
3.1% due 09/20/06 .............................. 2,180,000 20,858
Kingdom of Sweden - Debs. (UK)
6.25% due 12/08/99 ............................. 90 150
Republic of Italy - Debs. (IT)
8.5% due 01/01/04 .............................. 2,500,000 1,861
9.0% due 11/01/23 .............................. 3,750,000 3,560
10.5% due 04/28/14 ............................. 4,200 10,836
12.0% due 01/01/02 ............................. 8,650,000 6,500
Republic of Italy - Notes (IT)
3.5% due 06/20/01 .............................. 620,000 5,821
5.0% due 01/15/01 .............................. 7,900,000 4,946
8.75% due 07/01/06 ............................. 6,800,000 5,448
----------
134,614
Health Care Services - 0.7%
Tenet Healthcare Corp. (US)
8.0% due 01/15/05 .............................. 22,890 23,384
92
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Media - TV / Radio - 0.5%
Viacom, Inc. - Sr. Notes (US)
7.75% due 06/01/05 ............................. $ 15,020 $ 16,401
Municipals - 0.2%
Tennessee Valley Authority - Bonds (US)
6.375% due 09/18/06 ............................ 11,000 7,541
Natural Gas Distribution - 0.4%
Enron Corp. - Notes (US)
7.625% due 09/10/04 ............................ 13,380 14,329
Oil - Equipment and Services - 0.2%
Beckman Instruments, Inc. (US)
7.1% due 03/04/03 .............................. 6,000 5,992
Personal and Commercial Lending - 0.2%
Ford Motor Credit Co. (LU)
5.25% due 06/16/08 ............................. 3,850 2,408
Ford Motor Credit Co. - Notes (US)
6.125% due 04/28/03 ............................ 4,000 4,066
----------
6,474
Telephone - 0.7%
WorldCom, Inc. - Notes (US)
7.75% due 04/01/07 ............................. 19,560 22,065
Transportation Services - 0.1%
Norfolk Southern Corp. - Bonds (US)
7.8% due 05/15/27 .............................. 3,600 4,197
U.S. Government Agencies - 7.4%
Federal National Mortgage Assoc. (US)
6.0% due 12/01/99 .............................. 15,400 15,439
6.0% due 05/15/08 .............................. 7,500 7,917
6.0% due 09/01/12 .............................. 44 44
6.0% due 02/01/13 .............................. 363 364
6.0% due 03/01/13 .............................. 3,828 3,838
6.0% due 04/01/13 .............................. 8,522 8,544
6.0% due 05/01/13 .............................. 4,816 4,826
6.0% due 06/01/13 .............................. 2,467 2,473
6.0% due 07/01/13 .............................. 10,592 10,618
6.0% due 08/01/13 .............................. 22,067 22,122
6.0% due 09/01/13 .............................. 3,875 3,884
6.5% due 12/01/99 .............................. 87,310 88,043
Government National Mortgage Assoc. (US)
6.5% due 12/15/99 .............................. 48,910 49,399
7.0% due 12/15/99 .............................. 26,450 27,062
----------
244,573
U.S. Governmental - 12.8%
U.S. Treasury - Bonds (US)
6.75% due 08/15/26 # ........................... 39,840 47,727
8.875% due 08/15/17 ............................ 5,000 7,043
U.S. Treasury - Notes (US)
5.75% due 04/30/03 ............................. 79,850 83,119
6.125% due 09/30/00 ............................
6.25% due 05/31/00 ............................. 18,500 18,896
6.5% due 05/15/05 .............................. 74,710 81,878
6.625% due 07/31/01 ............................ 28,560 29,925
6.625% due 05/15/07 ............................ 62,500 70,283
7.0% due 07/15/06 .............................. 22,005 25,055
7.5% due 05/15/02 .............................. 8,000 8,686
7.5% due 02/15/05 .............................. 43,715 50,054
----------
422,666
----------
TOTAL PUBLICLY-TRADED BONDS- 33.7% 1,112,932
SHORT-TERM INVESTMENTS - 6.0%
Investment in joint trading account
(Note B) (US)
6.101% due 01/04/99 ............................ 197,087 197,120
---------- ----------
TOTAL INVESTMENTS- 105.0% 3,466,578
Payables, less cash and receivables- (5.0)% (164,668)
---------- ----------
NET ASSETS- 100.0% $3,301,910
========== ==========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $1,564
have been segregated to collateralize financial futures contracts.
ADR- American Depository Receipt
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market % of
Country Value Long-Term
Country Abbreviation (000's) Investments
United States ..................... US $3,090,417 94.5%
Italy ............................. IT 38,971 1.2%
Germany ........................... DE 35,492 1.1%
France ............................ FR 28,276 0.9%
Spain ............................. ES 20,858 0.6%
United Kingdom .................... GB 13,695 0.4%
Canada ............................ CA 11,759 0.4%
Netherlands ....................... NL 8,516 0.2%
Luxembourg ........................ LU 5,566 0.2%
Japan ............................. JP 5,437 0.2%
Denmark ........................... DK 4,447 0.1%
Sweden ............................ UK 3,994 0.1%
Australia ......................... AU 2,030 0.1%
---------- -----
$3,269,458 100.0%
========== =====
93
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.4%
AAR Corp. - Debs.
9.5% due 11/01/01 ............................... $ 320 $ 347
Automobile - 0.3%
Hertz Corp. - Sr. Notes
7.375% due 06/15/01 ............................. 200 208
Banks - 8.7%
Banponce Corp. - Notes
6.54% due 11/06/01 .............................. 1,000 1,004
6.55% due 10/10/00 .............................. 1,100 1,108
Capital One Bank - Notes
5.95% due 02/15/01 .............................. 550 541
6.83% due 08/16/99 .............................. 325 326
7.0% due 04/30/01 ............................... 1,000 1,003
7.08% due 10/30/01 .............................. 250 251
8.125% due 03/01/00 ............................. 450 458
First Hawaiian, Inc. - Sub. Notes
6.25% due 08/15/00 .............................. 2,000 2,021
----------
6,712
Brokerage and Investment Management - 3.5%
Merrill Lynch & Co., Inc. - Notes
5.87% due 11/15/01 .............................. 2,400 2,414
Paine Webber Group, Inc. - Debs.
9.25% due 12/15/01 .............................. 250 269
----------
2,683
Business Services - 1.4%
Comdisco, Inc. - Notes
5.75% due 02/15/01 .............................. 887 879
7.75% due 09/01/99 .............................. 170 172
----------
1,051
Consumer - Miscellaneous - 4.4%
Loewen Group International, Inc.
7.2% due 06/01/03 ............................... 1,000 820
Service Corp. International - Notes
6.75% due 06/01/01 .............................. 2,500 2,560
----------
3,380
Cosmetics and Personal Care Products - 2.6%
Dial Corp. - Notes
5.9% due 10/25/01 ............................... 2,000 1,993
Diversified Operations - 3.3%
Tyco International Group SA
6.125% due 06/15/01 ............................. 2,200 2,222
Williams Holdings of Delaware - Notes
6.68% due 06/13/00 .............................. 350 355
----------
2,577
Electric Power - 3.4%
Commonwealth Edison - Notes
9.05% due 10/15/99 .............................. 150 153
Niagara Mohawk Power Corp. - Sr. Notes
6.5% due 07/01/99 ............................... 2,000 1,996
Utilicorp United, Inc. - Sr. Notes
8.45% due 11/15/99 .............................. 500 512
----------
2,661
Financial Services - 4.4%
Gatx Capital Corp. - Notes
6.5% due 11/01/00 ............................... 1,750 1,779
Heller Financial, Inc. - Notes
6.14% due 04/13/00 .............................. 100 100
6.25% due 03/01/01 .............................. 1,500 1,503
----------
3,382
Food, Beverage and Tobacco - 3.2%
Philip Morris Cos., Inc. - Debs.
9.0% due 01/01/01 ............................... 1,700 1,810
Universal Corp. - Debs.
9.25% due 02/15/01 .............................. 598 639
----------
2,449
Foreign - 1.0%
State of Israel Agency for International
Development
6.0% due 02/15/99 ............................... 750 751
Health Care Services - 3.4%
Kaiser Foundation Hospital - Debs.
9.0% due 11/01/01 ............................... 500 548
Tenet Healthcare Corp. - Sr. Notes
8.625% due 12/01/03 ............................. 2,000 2,087
----------
2,635
Insurance - 0.1%
USF&G Corp. - Sr. Notes
8.375% due 06/15/01 ............................. 105 112
Media - TV / Radio - 7.2%
CBS, Inc. - Sr. Notes
7.75% due 06/01/99 .............................. 600 604
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 ............................... 1,010 1,072
News America Holdings, Inc. - Sr. Notes
7.45% due 06/01/00 .............................. 750 768
TCI Communications, Inc. - Sr. Notes
6.375% due 09/15/99 ............................. 152 153
7.25% due 06/15/99 .............................. 190 192
Time Warner, Inc. - Notes
7.95% due 02/01/00 .............................. 155 159
Viacom, Inc.
6.75% due 01/15/03 .............................. 2,500 2,574
----------
5,522
Metal Product and Fabrication - 0.1%
Reynolds Metals Co. - Debs.
9.375% due 06/15/99 ............................. 100 102
Oil - Equipment and Services - 3.5%
Beckman Instruments, Inc.
7.1% due 03/04/03 ............................... 1,475 1,473
94
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Oil - Equipment and Services - Continued
Gulf Canada Resources, Ltd. - Debs.
9.0% due 08/15/99 ............................... $ 1,250 $ 1,269
----------
2,742
Oil and Natural Gas Exploration and Production - 2.8%
Occidental Petroleum Corp. - Notes
7.09% due 09/08/99 .............................. 403 405
8.5% due 11/09/01 ............................... 1,000 1,051
Oryx Energy Co. - Debs.
10.0% due 06/15/99 .............................. 715 728
----------
2,184
Paper and Forest Products - 0.3%
Champion International Corp. - Debs.
9.7% due 05/01/01 ............................... 220 238
Personal and Commercial Lending - 10.0%
American General Finance Corp. - Notes
5.75% due 11/23/01 .............................. 2,770 2,783
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 ............................. 1,500 1,525
General Motors Acceptance Corp. - Notes
5.95% due 04/20/01 .............................. 1,200 1,213
MBNA America Bank N.A. - Notes
5.96% due 08/10/00 .............................. 2,000 1,994
MBNA Corp. - Sr. Notes
6.5% due 09/15/00 ............................... 200 201
----------
7,716
Pollution Control - 3.7%
WMX Technologies, Inc. - Notes
7.125% due 06/15/01 ............................. 220 226
8.25% due 11/15/99 .............................. 2,600 2,651
----------
2,877
Real Estate Investment Trust - 3.6%
Developers Diversified Realty - Sr. Notes
7.375% due 09/18/01 ............................. 375 390
Franchise Finance Corp. of America - Sr. Notes
7.0% due 11/30/00 ............................... 2,400 2,386
----------
2,776
Retail - Department Stores - 4.9%
Dillard's, Inc. - Notes
5.79% due 11/15/01 .............................. 975 972
Woolworth Corp. - Notes
6.98% due 10/15/01 .............................. 1,625 1,625
7.0% due 06/01/00 ............................... 1,150 1,150
----------
3,747
Shoe and Apparel Manufacturing - 1.3%
Fruit of The Loom, Inc. - Sr. Notes
7.875% due 10/15/99 ............................. 1,000 1,005
Telephone - 3.9%
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 ............................. 3,000 3,050
Transportation Services - 1.0%
Amr Corp. - Debs.
10.0% due 02/01/01 .............................. 515 552
Ryder Systems, Inc. - Notes
6.7% due 08/31/01 ............................... 200 205
----------
757
U.S. Government Agencies - 1.5%
Federal Home Loan Mortgage Corp.
5.02% due 02/15/99 .............................. 420 420
Private Export Funding Co.
9.5% due 03/31/99 ............................... 750 758
----------
1,178
U.S. Governmental - 10.9%
U.S. Treasury - Notes
5.5% due 05/31/00 ............................... 810 819
5.75% due 09/30/99 .............................. 7,500 7,560
----------
8,379
----------
TOTAL PUBLICLY-TRADED BONDS- 94.8% 73,214
SHORT-TERM INVESTMENTS - 3.7%
Investment in joint trading account (Note B)
6.101% due 01/04/99 ............................ 2,813 2,814
---------- ----------
TOTAL INVESTMENTS- 98.5% 76,028
Cash and Receivables, less payables- 1.5% 1,166
---------- ----------
NET ASSETS- 100.0% $ 77,194
========== ==========
See notes to financial statements.
95
DZFSDX
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.0%
BE Aerospace, Inc. * ............................ 6,700 $ 141
Esterline Technologies Corp. * .................. 14,100 307
GenCorp, Inc. ................................... 6,600 164
--------
612
Auto and Truck Parts - 1.6%
Arvin Industries, Inc. .......................... 14,000 584
Detroit Diesel Corp. * .......................... 12,400 256
Standard Products Co. ........................... 8,500 173
--------
1,013
Automobile - 0.4%
Copart, Inc. .................................... 7,000 227
Banks - 7.6%
Anchor Bancorp Wisconsin, Inc. .................. 7,400 178
Commerce Bancorp, Inc. .......................... 17,225 904
Downey Financial Corp. .......................... 20,090 511
First Republic Bank * ........................... 13,100 328
Firstbank Corp. - Puerto Rico ................... 11,400 344
Flagstar Bancorp, Inc. .......................... 7,500 196
GBC Bancorp ..................................... 14,200 366
HUBCO, Inc. ..................................... 8,343 251
Imperial Bancorp * .............................. 31,150 518
Independent Bank Corp. .......................... 7,600 132
Provident Bankshares Corp. * .................... 8,190 204
Republic Bancorp, Inc. .......................... 11,300 154
Riggs National Corp. ............................ 8,100 165
Silicon Valley Bancshares * ..................... 12,200 208
T R Financial Corp. ............................. 7,400 291
Trustmark Corp. ................................. 6,000 136
--------
4,886
Business Services - 2.5%
AHL Services, Inc. * ............................ 2,600 81
BancTec, Inc. * ................................. 15,200 191
Express Scripts, Inc. - Cl. A * ................. 5,600 376
InaCom Corp. .................................... 23,000 342
Labor Ready, Inc. * ............................. 8,800 173
ProBusiness Services, Inc. * .................... 4,800 219
Resource Bancshares Mortgage Group .............. 13,900 230
--------
1,612
Chemicals - 1.3%
Ferro Corp. ..................................... 12,000 312
NL Industries ................................... 9,200 131
Spartech Corp. .................................. 18,100 398
--------
841
Commercial Services - 5.3%
ADVO, Inc. ...................................... 8,100 214
Bowne & Co., Inc. ............................... 19,300 345
Consolidated Graphics, Inc. * ................... 2,400 162
DeVry, Inc. * ................................... 16,800 515
DII Group, Inc. * ............................... 11,300 260
E'Town Corp. .................................... 1,200 57
Lason, Inc. * ................................... 13,100 762
META Group, Inc. * .............................. 8,200 244
StaffMark, Inc. ................................. 7,100 159
Sylvan Learning Systems, Inc. * ................. 8,400 256
True North Communications ....................... 9,200 247
Veritas DGC, Inc. * ............................. 11,100 144
--------
3,365
Computer Equipment - 1.9%
Micron Electronics, Inc. * ...................... 10,400 180
Network Appliance, Inc. * ....................... 14,000 630
Xircom, Inc. * .................................. 12,700 432
--------
1,242
Computer Software and Services - 6.8%
Acxiom Corp. * .................................. 8,000 248
Aspect Development, Inc. * ...................... 8,400 372
AVT Corp. * ..................................... 8,400 244
BroadVision, Inc. * ............................. 6,100 195
Excite, Inc. * .................................. 4,100 172
HNC Software, Inc. .............................. 5,600 226
Legato Systems, Inc. * .......................... 5,500 363
Lycos, Inc. * ................................... 7,900 439
Macromedia, Inc. * .............................. 2,200 74
Mastech Corp. * ................................. 13,300 381
Mercury Interactive Corp. * ..................... 5,200 329
Micros Systems, Inc. ............................ 5,600 184
Pinnacle Systems, Inc. .......................... 6,400 229
Progress Software Corp. * ....................... 9,900 334
Sapient Corp. ................................... 6,400 358
Syntel, Inc. * .................................. 20,200 229
--------
4,377
Construction - 6.6%
Centex Construction Products, Inc. .............. 14,900 605
Comfort Systems USA, Inc. * ..................... 29,700 531
Granite Construction, Inc. ...................... 15,100 507
Insituform Technologies, Inc. - Cl. A * ......... 15,300 222
Jacobs Engineering Group, Inc. * ................ 17,600 717
Lone Star Industries, Inc. ...................... 13,000 479
Nortek, Inc. .................................... 6,700 185
NVR, Inc. * ..................................... 11,900 567
U.S. Home Corp. * ............................... 13,000 432
--------
4,245
Consumer - Miscellaneous - 0.6%
Romac International, Inc. ....................... 17,000 378
Cosmetics and Personal Care Products - 0.8%
AptarGroup, Inc. ................................ 19,200 539
Diversified Operations - 1.3%
Eastern Enterprises ............................. 5,200 228
Gerber Scientific, Inc. ......................... 9,900 236
96
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Diversified Operations - Continued
Hawaiian Electric Industries .................... 9,600 $ 386
----------
850
Electric Power - 2.2%
Black Hills Corp. ............................... 3,150 83
Cilcorp, Inc. ................................... 5,200 318
Cleco Corp. ..................................... 8,900 305
CMP Group, Inc. ................................. 9,800 185
Interstate Energy Corp. ......................... 9,690 313
Minnesota Power, Inc. ........................... 4,700 207
----------
1,411
Electrical Equipment - 1.1%
C&D Technologies, Inc. .......................... 18,200 500
SIGCORP, Inc. ................................... 6,600 236
----------
736
Electronic Products and Services - 4.4%
Applied Micro Circuits Corp. * .................. 8,300 282
Level One Communications, Inc. * ................ 5,700 202
MedQuist, Inc. * ................................ 6,900 273
Novellus Systems, Inc. * ........................ 5,600 277
PMC-Sierra, Inc. * .............................. 7,500 473
Recoton Corp. * ................................. 43,300 777
Technitrol, Inc. ................................ 7,000 223
TranSwitch Corp. * .............................. 7,700 300
-----------
2,807
Financial Services - 1.7%
Doral Financial Corp. ........................... 20,800 460
FirstFed Financial Corp. * ...................... 26,000 465
WSFS Financial Corp. * .......................... 10,100 170
--------
1,095
Food, Beverage and Tobacco - 1.8%
Adolph Coors Co. - Cl. B ........................ 3,300 186
Canandaigua Brands Inc. - Cl. A * ............... 3,100 179
Pilgrims Pride Corp. - Cl. B .................... 10,000 199
Universal Corp. ................................. 16,500 580
--------
1,144
Health Care Products - 6.3%
Alpharma, Inc. - Cl A ........................... 14,300 505
Biomatrix, Inc. * ............................... 5,000 291
Hanger Orthopedic Group, Inc. ................... 12,400 279
Maxxim Medical, Inc. * .......................... 22,900 681
MedImmune, Inc. * ............................... 3,000 299
MiniMed, Inc. * ................................. 1,900 199
OEC Medical Systems, Inc. * ..................... 7,800 245
ResMed, Inc. * .................................. 6,400 291
Roberts Pharmaceutical Corp. * .................. 19,300 420
SEQUUS Pharmaceuticals, Inc. * .................. 4,100 83
VISX, Inc. * .................................... 3,100 271
Xomed Surgical Products, Inc. * ................. 14,600 467
--------
4,031
Health Care Services - 3.9%
AmeriSource Health Corp. - Cl.A * ............... 2,400 156
Assisted Living Concepts, Inc. * ................ 25,200 331
Bindley Western Industries ...................... 21,166 1,042
Covance, Inc. * ................................. 11,200 326
Hooper Holmes, Inc. ............................. 9,100 264
Theragenics Corp. ............................... 24,000 404
--------
2,523
Household Appliances / Furnishings - 1.4%
Knoll, Inc. ..................................... 13,500 400
Springs Industries, Inc. - Cl. A ................ 11,400 472
--------
872
Housing - 0.5%
Pulte Corp. ..................................... 4,800 134
TJ International, Inc. .......................... 6,700 172
--------
306
Insurance - 4.4%
American Heritage Life Investment ............... 7,800 191
Century Business Services, Inc. * ............... 3,700 53
Delphi Financial Group, Inc. - Cl. A * .......... 6,481 340
FBL Financial Group - Cl. A ..................... 29,000 703
First American Financial Corp. .................. 11,700 376
LandAmerica Financial Group, Inc. ............... 11,200 625
Orion Capital Corp. ............................. 12,900 514
--------
2,802
Leisure and Recreation - 0.5%
Grand Casinos * ................................. 29,000 234
International Speedway Corp. - Cl. A ............ 2,200 89
--------
323
Machinery - 2.4%
Applied Power, Inc. ............................. 9,000 340
Gencor Industries, Inc. ......................... 7,600 70
Graco, Inc. ..................................... 10,950 323
JLG Industries, Inc. ............................ 15,200 237
Lincoln Electric Holdings ....................... 4,400 98
NACCO Industries, Inc. - Cl. A .................. 1,900 175
Terex Corp. * ................................... 10,700 306
--------
1,549
Media - Publishing - 1.2%
Hollinger International, Inc. ................... 26,900 375
McClatchy Newspapers, Inc. ...................... 11,800 417
--------
792
Media - TV / Radio - 1.6%
Adelphia Communications Corp. - Cl. A ........... 4,000 183
Generale Cable Corp. ............................ 28,200 578
Media General, Inc. - Cl. A ..................... 4,600 $ 244
--------
1,005
97
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Metal Product and Fabrication - 0.8%
Intermet Corp. .................................. 29,700 388
Milacron, Inc. .................................. 6,500 125
--------
513
Metals and Mining - 0.2%
Johnstown America Industries, Inc. .............. 11,000 144
Natural Gas Distribution - 1.5%
Commonwealth Energy System ...................... 2,200 89
Energen Corp. ................................... 14,800 289
KN Energy, Inc. ................................. 2,700 98
NUI Corp. ....................................... 18,400 493
--------
969
Oil - Equipment and Services - 1.5%
Daniel Industries, Inc. ......................... 31,900 387
ONEOK, Inc. ..................................... 4,500 163
SEACOR SMIT, Inc. ............................... 8,200 405
--------
955
Oil and Natural Gas Exploration and Production - 1.7%
Basin Exploration, Inc. * ....................... 12,700 160
Evergreen Resources, Inc. * ..................... 10,400 185
HS Resources, Inc. * ............................ 42,700 323
Tesoro Petroleum Corp. * ........................ 32,700 396
--------
1,064
Paper and Forest Products - 0.6%
United Stationers, Inc. * ....................... 14,000 364
Precious Metals/Gems/Stones - 0.7%
Stillwater Mining Co. * ......................... 11,100 455
Real Estate Investment Trust - 7.0%
Bedford Property Investors, Inc. ................ 20,400 344
CBL & Associates Properties, Inc. ............... 24,800 640
Essex Property Trust, Inc. ...................... 8,900 265
FelCor Lodging Trust, Inc. ...................... 17,136 395
Gables Residential Trust ........................ 21,500 499
Kilroy Realty Corp. ............................. 8,200 189
Koger Equity, Inc. * ............................ 27,000 464
Mack-Cali Realty Corporation .................... 6,200 192
Prentiss Properties Trust ....................... 8,700 194
Shurgard Storage Centers, Inc. .................. 22,400 578
SL Green Realty Corp. ........................... 16,600 359
The Macerich Co. ................................ 13,200 338
--------
4,457
Real Estate Operations - 0.6%
M.D.C. Holdings, Inc. ........................... 16,700 357
Retail - Department Stores - 4.0%
American Eagle Outfitters, Inc. * ............... 3,500 233
Cato Corp. - Cl. A .............................. 21,400 211
Footstar, Inc. * ................................ 13,600 340
Kenneth Cole Productions, Inc. - Cl. A * ........ 25,100 471
Musicland Stores Corp. * ........................ 13,100 196
Shopko Stores, Inc. ............................. 15,800 525
Transport World Entertainment Corp. * ........... 5,500 105
Zale Corp. * .................................... 14,400 464
--------
2,545
Retail - Food - 2.1%
Brinker International, Inc. * ................... 19,200 554
CEC Entertainment, Inc. * ....................... 4,900 136
Ruby Tuesday, Inc. .............................. 17,600 374
The Cheesecake Factory, Inc. * .................. 8,700 258
--------
1,322
Shoe and Apparel Manufacturing - 1.4%
Burlington Industries, Inc. * ................... 26,800 295
Kellwood Co. .................................... 10,900 272
Maxwell Shoe, Inc. - Cl. A * .................... 32,700 358
--------
925
Steel - 1.1%
Reliance Steel & Aluminum Co. ................... 10,500 290
Texas Industries, Inc. .......................... 16,100 434
--------
724
Telecommunication Equipment - 2.0%
Centennial Cellular Corp. - Cl. A * ............. 6,900 283
GeoTel Communications Corp. * ................... 13,300 495
Polycom, Inc. * ................................. 7,200 160
Superior Telecom, Inc. .......................... 7,700 364
--------
1,302
Telephone - 0.8%
Metromedia Fiber Network, Inc. - Cl. A * ........ 15,800 529
Transportation Services - 0.8%
Alaska Air Group, Inc. * ........................ 2,900 128
Amtran, Inc. * .................................. 7,100 193
SkyWest, Inc. ................................... 6,500 212
--------
533
--------
TOTAL COMMON STOCK- 97.9% 62,741
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 1.9%
Investment in joint trading account (Note B)
6.101% due 01/04/99 ........................... $ 1,240 1,240
------- --------
TOTAL INVESTMENTS- 99.8% 63,981
Cash and Receivables, less payables- ............. 0.2% 114
------- --------
NET ASSETS- 100.0% $ 64,095
======= ========
* Non-income producing security.
See notes to financial statements.
98
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.6%
Banco de Galicia y Buenos Aires SA de CV
(BANK) ...................................... 1,473 $ 26
Banco Frances del Rio de la Plata SA (BANK) ..... 2,277 47
Telefonica de Argentina SA - ADR (UTIT) ......... 3,520 98
YPF Sociedad Anonima - ADR (OILX) ............... 7,762 217
----------
388
Australia - 1.9%
Australian Gas & Light Co., Ltd. (UTIG) ......... 11,386 82
Brambles Industries, Ltd. (DIOP) ................ 4,000 97
Colonial, Ltd. (FINL) ........................... 35,685 123
Commonwealth Bank (BANK) ........................ 10,008 142
Goodman Fielder, Ltd. (FOOD) .................... 55,000 56
John Fairfax Holdings Ltd. (MEDP) ............... 6,000 12
Lend Lease Corp. (FINL) ......................... 6,122 83
National Australia Bank, Ltd. (BANK) ............ 92 1
News Corp., Ltd. (MEDI) ......................... 17,022 113
Publishing & Broadcasting, Ltd. (MEDP) .......... 19,000 83
TABCORP Holdings, Ltd. (LEIS) ................... 13,000 80
Telstra Corp., Ltd. (TELS) ...................... 39,000 182
Westpac Banking Corp., Ltd. (BANK) .............. 24,694 165
----------
1,219
Belgium - 2.0%
Credit Communal Holding/Dexia (BANK) ............ 559 93
Fortis AG (INSU) ................................ 1,030 371
KBC Bancassurance Holding NV (BANK) ............. 8,580 675
UCB SA (HEAL) ................................... 19 117
----------
1,256
Brazil - 1.1%
Companhia Energetica de Minas Gerias -
ADR (UTIE) .................................. 3,121 59
Compania Brasileira de Distribuicao Grupo Pao
de Acucar (RETF) ............................... 2,057 32
Telecomunicacoes Brasileiras S.A. (UTIT) ........ 8,170 594
Unibanco Uniao De Bancos Brasileiros SA
(BANK) ...................................... 3,000 43
----------
728
Canada - 0.2%
Alcan Aluminum, Ltd. (META) ..................... 3,240 88
Royal Bank of Canada (BANK) ..................... 1,090 55
----------
143
Chili - 0.1%
Chilectra SA - ADR (UTIE) ....................... 1,724 38
Compania Cervecerias Unidas SA (FOOD) ........... 200 4
----------
42
China - 0.2%
Huaneng Power International, Inc. - ADR *
(UTIE) ...................................... 8,000 116
Denmark - 0.3%
Den Danske Bank (BANK) .......................... 780 105
Tele Danmark A/S (TELS) ......................... 340 46
Unidanmark A/S - Cl. A (BANK) ................... 790 71
----------
222
Finland - 0.7%
Nokia Oyj - A Shares (TELE) ..................... 3,520 428
France - 10.4%
Accor SA (LEIS) ................................. 260 56
Alcatel Alsthom (TELE) .......................... 1,994 244
AXA SA (INSU) ................................... 3,834 555
Carrefour SA (RETF) ............................. 441 333
Compagnie de St. Gobain (CONS) .................. 1,610 227
Credit Commercial de France (BANK) .............. 2,153 200
Dexia France (BANK) ............................. 366 56
Dexia France (BANK) ............................. 380 58
Elf Aquitaine (OILX) ............................ 1,900 219
Group Danone * (FOOD) ........................... 810 232
GTM Entrepose SA (ENGI) ......................... 430 45
L'Oreal (HNBA) .................................. 195 141
Lafarge SA (CONS) ............................... 929 88
Lapeyre SA (HOUS) ............................... 990 71
Legrand SA (ELEQ) ............................... 444 118
Pathe SA * (MEDI) ............................... 230 64
Pinault-Printemps-Redoute SA (RETS) ............. 3,460 661
Primagaz Cie (OILX) ............................. 240 23
Sanofi SA (HEAL) ................................ 2,802 461
Schneider SA (MACH) ............................. 5,571 338
Societe Generale de Paris (BANK) ................ 1,328 215
Societe Television Francaise 1 (MEDI) ........... 1,230 219
Sodexho SA (LEIS) ............................... 2,450 548
Total SA - Cl. B (OILX) ......................... 5,011 507
Vivendi (DIOP) .................................. 3,970 1,030
----------
6,709
Germany - 6.6%
Allianz AG - Reg. (INSU) ........................ 950 348
Bayer AG (CHEM) ................................. 5,419 226
Bayerische Vereinsbank AG (BANK) ................ 7,027 550
Buderus AG (DIOP) ............................... 90 33
Deutsche Bank AG (BANK) ......................... 4,909 289
Deutsche Telekom AG * (TELS) .................... 8,186 269
Dresdner Bank AG (BANK) ......................... 7,271 305
Gehe AG (HEAL) .................................. 7,628 526
Hoechst AG (INSU) ............................... 1,670 69
Hornback Baumarkt Aktiengesellschaft (RETF) ..... 80 3
Mannesmann AG (MACH) ............................ 4,720 541
Rhoen-Klinikum AG (HEAL) ........................ 990 98
SAP AG (SOFT) ................................... 860 372
Siemens AG (DIOP) ............................... 1,887 122
VEBA AG (DIOP) .................................. 6,315 378
Volkswagen AG (AUTO) ............................ 1,160 93
----------
4,222
Hong Kong - 1.3%
Cheung Kong (Holdings), Ltd. (READ) ............. 6,000 43
China Telecom (Hong Kong), Ltd. (TELS) .......... 30,000 52
CLP Holdings, Ltd. (UTIE) ....................... 18,000 90
99
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Hong Kong - Continued
Hang Seng Bank, Ltd. (BANK) ..................... 7,000 $ 63
Henderson Land Development Co., Ltd.
(READ) ...................................... 22,000 114
Hong Kong Telecommunications, Ltd.
(TELS) ...................................... 46,000 80
Hutchison Whampoa, Ltd. (COMM) .................. 51,000 361
Sun Hung Kai Properties, Ltd. (REIT) ............ 5,000 36
----------
839
Ireland - 0.1%
CBT Group Public, Ltd. - ADR * (SOFT) ........... 4,946 74
Italy - 5.7%
Assicurazioni Generali (INSU) ................... 6,640 277
Banca Commerciale Italiana (BANK) ............... 13,000 90
Banca Di Roma (BANK) ............................ 114,000 193
Credito Italiano SpA (BANK) ..................... 65,393 387
ENI SpA (OILS) .................................. 60,784 397
Industrie Natuzzi SpA (APPL) .................... 2,000 50
Istituto Bancario San Paolo di Torino (BANK) .... 20,858 368
Istituto Nazionale delle Assicurazioni (INSU) ... 84,000 222
Italgas SpA (UTIG) .............................. 15,000 81
La Rinascente SpA (CONS) ........................ 4,000 41
Mediolanum SpA (INSU) ........................... 26,655 198
Telecom Italia Mobile (TIM) SpA (TELS) .......... 75,000 553
Telecom Italia SpA * (TELS) ..................... 91,444 780
----------
3,637
Japan - 16.1%
Advantest (ETRN) ................................ 1,000 63
Alps Electric Co. (ETRN) ........................ 6,000 110
Amada Co., Ltd (MACH) ........................... 8,000 39
Canon, Inc. (COMM) .............................. 24,000 513
Citizen Watch Co., Ltd. (RETS) .................. 7,000 42
Daiichi Pharmaceutical Co., Ltd. (HEAL) ......... 12,000 203
Dainippon Screen Manufacturing Co., Ltd.
(ELEQ) ...................................... 13,000 32
Daiwa House Industry Co., Ltd. (HOUS) ........... 15,000 160
DDI Corp. (UTIT) ................................ 29 108
Denso Corp. (ETRN) .............................. 25,000 462
East Japan Railway Co. (TRAN) ................... 32 179
Fanuc, Ltd. (ELEQ) .............................. 3,400 116
Fujitsu, Ltd. (ELEQ) ............................ 6,000 80
Hitachi, Ltd. (ETRN) ............................ 30,000 186
Honda Motor Co. (AUTO) .......................... 2,000 66
Ito-Yokado Co., Ltd. (RETS) ..................... 5,000 349
KAO Corp. (HNBA) ................................ 13,000 293
Kokuyo Co. (COMM) ............................... 8,000 108
Komatsu, Ltd. (MACH) ............................ 14,000 73
Komori Corp. (MACH) ............................. 7,000 147
Kuraray Co., Ltd. (APPA) ........................ 18,000 198
Kyocera Corp. (ETRN) ............................ 6,000 317
Makita Corp. (CNSU) ............................. 11,000 122
Marui Co., Ltd. (RETS) .......................... 18,000 346
Matsushita Electric Industrial Co. (ETRN) ....... 26,000 460
Mitsubishi Corp. (DIOP) ......................... 19,000 109
Mitsubishi Heavy Industries, Ltd. (MACH) ........ 78,000 304
Mitsui Fudosan (REAL) ........................... 37,000 280
Murata Manufacturing Co., Ltd. (ETRN) ........... 8,000 332
NEC Corp. (COMP) ................................ 41,000 377
Nippon Telegraph & Telephone Corp. (UTIT) ....... 29 224
Nomura Securities Co., Ltd. (FUND) .............. 28,000 244
NTT Mobile Communication Network, Inc.
(TELS) ...................................... 2 82
Pioneer Electronic Corp. (ETRN) ................. 4,000 67
Sangetsu Co., Ltd. (CNSU) ....................... 1,000 15
Sankyo Co., Ltd. (HEAL) ......................... 18,000 393
Sekisui Chemical Co. (CHEM) ..................... 22,000 148
Sekisui House, Ltd. (CONS) ...................... 15,000 159
Seven-Eleven Japan (RETF) ....................... 2,000 161
Shin-Etsu Chemical Co. (CHEM) ................... 13,000 313
Shiseido Co., Ltd. (CHEM) ....................... 9,000 116
Sony Corp. (ETRN) ............................... 6,300 459
Sumitomo Corp. (DIOP) ........................... 31,000 151
Sumitomo Electric Industries (TELE) ............. 38,000 427
Sumitomo Forestry Co. (PAPR) .................... 8,000 57
TDK Corp. (COMP) ................................ 6,000 548
Tokio Marine & Fire Insurance Co. (INSU) ........ 7,000 84
Tokyo Electron, Ltd. (ETRN) ..................... 4,100 156
Tokyo Steel Manufacturing (STEE) ................ 2,500 12
Toppan Printing Co. (CNSU) ...................... 15,000 183
UNY Co., Ltd. (RETS) ............................ 8,000 146
----------
10,319
Luxembourg - 0.1%
Society Europeenne des Satellites (MEDI) ........ 336 52
Mexico - 1.3%
Cemex SA de CV (CONS) ........................... 8,000 20
Cemex SA de CV (CONS) ........................... 60
Cemex SA de CV - ADR * (CONS) ................... 14,030 61
Fomento Economico Mexicano SA de C.V.
(FOOD) ...................................... 28,000 76
Gruma SA * (FOOD) ............................... 9,114 23
Gruma SA - ADR * (FOOD) ......................... 3,554 35
Grupo Industrial Maseca SA de CV (FOOD) ......... 41,630 34
Grupo Modelo SA de CV (FOOD) .................... 32,000 68
Grupo Televisa SA * (MEDI) ...................... 2,907 72
Kimberly-Clark de Mexico SA de CV (PAPR) ........ 23,170 74
Telefonos de Mexico SA - ADR (UTIT) ............. 6,560 319
TV Azteca SA de CV * (MEDI) ..................... 2,700 18
----------
800
Netherlands - 10.7%
ABN Amro Holding NV (BANK) ...................... 13,956 293
Akzo Nobel Nv (CHEM) ............................ 1,610 73
ASM Lithography Holding NV (ETRN) ............... 7,380 225
CSM NV (FOOD) ................................... 5,078 293
Elsevier NV (MEDP) .............................. 32,310 452
Fortis Amev NV (INSU) ........................... 6,420 532
Gucci Group NV (APPA) ........................... 1,594 78
ING Groep NV (BANK) ............................. 16,260 991
100
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Netherlands - Continued
Koninklijke Ahold NV (RETF) ..................... 12,603 $ 466
Koninklijke Numica NV (ETRN) .................... 4,855 231
KPN NV (UTIT) ................................... 1,730 87
Philips Electronics NV (ETRN) ................... 4,290 288
Royal Dutch Petroleum Co. (OILS) ................ 11,750 585
STMicroelectronics NV (ETRN) .................... 1,930 152
TNT Post Group NV (TRAN) ........................ 1,990 64
Unilever NV (CNSU) .............................. 7,420 634
Wolters Kluwer NV (MEDP) ........................ 6,763 1,446
----------
6,890
New Zealand - 0.2%
Telecom Corp. of New Zealand (TELS) ............. 22,000 96
Telecom Corp. of New Zealand, Ltd. - IR
(TELS) ...................................... 13,000 28
----------
124
Norway - 1.1%
Bergesen d.y. ASA - CL. A (TRAN) ................ 250 3
Norsk Hydro ASA (DIOP) .......................... 9,430 319
Orkla ASA (DIOP) ................................ 24,560 367
Saga Petroleum ASA (OILX) ....................... 400 3
----------
692
Panama - 0.1%
Panamerican Beverages, Inc. - Cl. A (FOOD) ...... 4,160 91
Portugal - 0.5%
Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestora de Participacoes Sociais SA
(RETF) ......................................... 5,980 327
Singapore - 0.1%
Singapore Press Holdings, Ltd. (MEDP) ........... 7,138 78
Soviet Union - 0.0%
Gazprom - ADR (OILX) ............................ 1,380 12
LUKoil Holding - ADR (OILX) ..................... 180 3
----------
15
Spain - 2.9%
Banco Bilbao Vizcaya, SA (BANK) ................. 6,820 107
Banco Santander SA (BANK) ....................... 16,170 321
Corporacion Bancaria de Espana SA (BANK) ........ 5,990 155
Endesa SA (UTIE) ................................ 9,788 259
Gas Natural SDG SA (UTIG) ....................... 1,680 182
Iberdrola SA (UTIE) ............................. 10,930 204
Repsol SA (OILX) ................................ 2,307 123
Telefonica S.A. (UTIT) .......................... 12,192 541
----------
1,892
Sweden - 3.3%
ABB AB - Cl. A (ENGI) ........................... 12,230 130
Astra AB (HEAL) ................................. 29,096 591
Atlas Copco AB (MACH) ........................... 5,970 129
Electrolux AB - Ser. B (APPL) ................... 18,410 316
Esselte AB - Cl. B (COMM) ....................... 910 15
Granges AB (UTIT) ............................... 495 7
Hennes & Mauritz AB (RETS) ...................... 6,150 501
Nordbanken Holding (BANK) ....................... 53,894 345
Sandvik AB (MACH) ............................... 530 9
Sandvik AB (MACH) ............................... 5,320 92
----------
2,135
Switzerland - 7.0%
ABB AG * (ENGI) ................................. 200 235
Adecco SA (COMM) ................................ 855 390
Credit Suisse Group - Reg. (BANK) ............... 1,750 274
Nestle SA (FOOD) ................................ 550 1,197
Novartis AG * * (HEAL) .......................... 466 916
Roche Holding AG (HEAL) ......................... 61 744
Swisscom AG - Reg. * (UTIT) ..................... 261 109
UBS AG (BANK) ................................... 2,066 635
----------
4,500
United Kingdom - 20.0%
Abbey National First Capital BV (BANK) .......... 19,000 404
Asda Group plc (RETF) ........................... 63,000 169
BG plc (OILE) ................................... 22,588 145
British Petroleum Co. plc (OILX) ................ 18,000 268
Cable & Wireless plc (TELS) ..................... 42,000 514
Cadbury Schweppes plc (FOOD) .................... 29,000 496
Caradon plc (CONS) .............................. 47,500 81
Centrica plc * (UTIG) ........................... 21,000 43
Compass Group plc (FOOD) ........................ 29,000 331
David S. Smith Holdings plc (PAPR) .............. 24,000 42
Diageo plc (FOOD) ............................... 91,112 1,010
Electrocomponents plc (ETRN) .................... 15,000 99
GKN plc (PART) .................................. 6,000 80
Glaxo Wellcome plc (HEAL) ....................... 32,000 1,102
Heywood Williams Group plc (CONS) ............... 2,000 7
HSBC Holdings plc (BANK) ........................ 3,600 90
John Laing plc (HOUS) ........................... 3,000 12
Kingfisher plc (RETS) ........................... 101,000 1,094
Ladbroke Group plc (LEIS) ....................... 28,000 113
National Westminster Bank plc (BANK) ............ 95,000 1,839
Rank Group plc (DIOP) ........................... 15,000 57
Reed International plc (MEDP) ................... 76,000 604
Rio Tinto plc - Reg. (DIOP) ..................... 23,000 267
Rolls-Royce plc (AERO) .......................... 17,000 71
Safeway plc (RETF) .............................. 41,000 206
Shell Transport & Trading Co. plc (OILX) ........ 156,000 959
SmithKline Beecham plc (HEAL) ................... 114,800 1,591
Tesco plc (RETF) ................................ 104,000 302
Tomkins plc (DIOP) .............................. 90,000 428
Unilever (CNSU) ................................. 12,000 135
United News & Media plc (MEDP) .................. 32,000 278
----------
12,837
United States - 0.1%
Brazil Fund, Inc. (FUND) ........................ 860 9
Korea Fund, Inc. * (BANK) ....................... 5,213 48
101
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
United States - Continued
Mahanagar Telephone Nigam Ltd. (TELS) ........... 3,000 $ 26
----------
83
----------
TOTAL COMMON STOCK- .. 94.7% 60,858
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) ......................... 15,198 92
Sydney Harbour Casino Holdings, Ltd. * (LEIS) ... 54,000 48
----------
140
Germany - 0.5%
Fielmann AG - Pref. (RETS) ...................... 670 32
Fresenius AG (HEAL) ............................. 290 61
Hornbach Holding AG (RETS) ...................... 550 33
SAP AG - Vorzug (SOFT) .......................... 442 211
----------
337
----------
TOTAL PREFERRED STOCK- 0.7% 477
RIGHTS - 0.0%
Spain - 0.0%
Telefonica S.A. - Bonus Rights (UTIT) ...........
Expires 01/30/99 (Cost $0) .................... 12,192 11
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.5%
Investment in joint trading account (Note B)
6.101% due 01/04/99 ............................ $ 2,865 2,865
---------- ----------
TOTAL INVESTMENTS- 99.9% 64,211
Cash and Receivables, less payables- 0.1% 39
---------- ----------
NET ASSETS- 100.0% $ 64,250
========== ==========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Banks ....................................... BANK $ 9,701 15.8%
Health Care Products ........................ HEAL 6,803 11.1%
Food, Beverage and Tobacco .................. FOOD 3,945 6.4%
Electronic Products and Services ............ ETRN 3,606 5.9%
Diversified Operations ...................... DIOP 3,358 5.5%
Retail - Department Stores .................. RETS 3,206 5.2%
Media - Publishing .......................... MEDP 2,953 4.8%
Telecommunication Services .................. TELS 2,709 4.4%
Insurance ................................... INSU 2,656 4.3%
Oil and Natural Gas Exploration
and Production ............................ OILX 2,334 3.8%
Telephone ................................... UTIT 2,099 3.4%
Retail - Food ............................... RETF 1,999 3.3%
Machinery ................................... MACH 1,672 2.7%
Commercial Services ......................... COMM 1,386 2.3%
Telecommunication Equipment ................. TELE 1,099 1.8%
Consumer - Miscellaneous .................... CNSU 1,089 1.8%
Oil ......................................... OILS 982 1.6%
Computer Equipment .......................... COMP 925 1.5%
Chemicals ................................... CHEM 876 1.4%
Leisure and Recreation ...................... LEIS 844 1.4%
Electric Power .............................. UTIE 766 1.2%
Construction ................................ CONS 685 1.2%
Computer Software and Services .............. SOFT 656 1.1%
Media - TV/Radio ............................ MEDI 629 1.0%
Cosmetics and Personal Care Products ........ HNBA 434 0.7%
Engineering and Construction ................ ENGI 409 0.7%
Natural Gas Distribution .................... UTIG 389 0.6%
Household Appliances/Furnishings ............ APPL 366 0.6%
Electrical Equipment ........................ ELEQ 346 0.6%
Real Estate Operations ...................... REAL 280 0.5%
Shoe and Apparel Manufacturing .............. APPA 276 0.4%
Brokerage and Investment Management ......... FUND 253 0.4%
Transportation Services ..................... TRAN 246 0.4%
Housing ..................................... HOUS 243 0.4%
Financial Services .......................... FINL 205 0.3%
Paper and Forest Products ................... PAPR 173 0.3%
Automobile .................................. AUTO 158 0.3%
Real Estate Development ..................... READ 157 0.3%
Oil - Equipment and Services ................ OILE 145 0.2%
Metals and Mining ........................... META 88 0.1%
Auto and Truck Parts ........................ PART 80 0.1%
Aerospace and Defense ....................... AERO 71 0.1%
Real Estate Investment Trust ................ REIT 36 0.1%
Steel ....................................... STEE 13 0.0%
------- -----
$61,346 100.0%
======= =====
</TABLE>
102
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.3%
Aeroquip-Vickers, Inc. .......................... 500 $ 15
Allied Signal, Inc. ............................. 12,800 567
B.F. Goodrich Co. ............................... 1,600 57
Boeing Co. ...................................... 23,068 753
General Dynamics Corp. .......................... 2,800 164
Lockheed Martin Corp. ........................... 4,400 373
Northrop Grumman Corp. .......................... 1,500 110
Raytheon Co. - Class B .......................... 7,800 415
United Technologies Corp. ....................... 5,100 555
-------
3,009
Agricultural Operations - 0.4%
Monsanto Co. .................................... 14,400 684
Pioneer Hi-Bred International, Inc. ............. 5,500 149
-------
833
Auto and Truck Parts - 0.9%
AutoZone, Inc. * ................................ 3,500 115
Cooper Tire & Rubber Co. ........................ 1,500 31
Cummins Engine Company, Inc. .................... 800 29
Dana Corp. ...................................... 3,715 152
General Motors Corp. ............................ 14,900 1,066
Genuine Parts Co. ............................... 4,250 142
Goodyear Tire & Rubber Co. ...................... 3,500 177
ITT Industries, Inc. ............................ 2,500 99
Johnson Controls, Inc. .......................... 1,900 112
Navistar International * ........................ 1,400 40
PACCAR, Inc. .................................... 1,900 78
Pep Boys - Manny, Moe & Jack .................... 1,800 28
TRW, Inc. ....................................... 2,700 152
-------
2,221
Automobile - 0.7%
Ford Motor Co. .................................. 27,500 1,614
Banks - 7.0%
Bank of New York Co., Inc. ...................... 17,500 704
Bank One Corp. .................................. 26,850 1,371
BankAmerica Corp. ............................... 39,568 2,379
BankBoston Corp. ................................ 6,700 261
Bankers Trust New York Corp. .................... 2,200 188
BB&T Corporation ................................ 6,600 266
Chase Manhattan Corp. ........................... 19,200 1,307
Comerica, Inc. .................................. 3,500 239
Fifth Third Bancorp ............................. 6,050 431
First Union Corp. ............................... 22,546 1,371
Fleet Financial Group, Inc. ..................... 13,000 581
Golden West Financial Corp. ..................... 1,300 119
Huntington Bancshares, Inc. ..................... 4,850 146
J.P. Morgan & Co., Inc. ......................... 4,100 431
KeyCorp ......................................... 10,300 330
Mellon Bank Corp. ............................... 5,900 406
Mercantile Bancorporation ....................... 3,700 171
National City Corp. ............................. 7,600 551
Northern Trust Corp. ............................ 2,600 227
PNC Bank Corp. .................................. 6,900 373
Regions Financial Corp. ......................... 5,000 202
Republic New York Corp. ......................... 2,500 114
State Street Corp. .............................. 3,700 257
Summit Bancorp .................................. 3,900 170
Suntrust Banks, Inc. ............................ 4,900 375
Synovus Financial Corp. ......................... 6,050 147
U.S. Bancorp .................................... 16,718 594
Union Planters Corp. ............................ 3,100 140
Wachovia Corp. .................................. 4,600 402
Washington Mutual, Inc. ......................... 13,618 520
Wells Fargo & Co. ............................... 36,900 1,474
-------
16,247
Brokerage and Investment Management - 3.6%
Aim Stic Prime Fund ............................. 2,825,513 2,826
Bear Stearns Cos., Inc. ......................... 2,500 93
Charles Schwab Corp. ............................ 9,225 518
Franklin Resources, Inc. ........................ 6,000 192
Lehman Brothers Holdings, Inc. .................. 2,700 119
Merrill Lynch & Co., Inc. ....................... 8,000 534
Morgan Stanley, Dean Witter,
Discover & Co. ................................. 13,150 934
Prime Obligation Fund ........................... 3,068,430 3,068
-------
8,284
Business Services - 0.4%
Automatic Data Processing, Inc. ................. 7,000 561
Dun & Bradstreet Corp. .......................... 3,700 117
H & R Block, Inc. ............................... 2,300 104
Harris Corp. .................................... 1,700 62
IKON Office Solutions, Inc. ..................... 2,500 21
-------
865
Chemicals - 1.2%
Air Products & Chemicals, Inc. .................. 5,200 208
Dow Chemical Co. ................................ 5,000 455
E.I. du Pont de Nemours & Co. ................... 25,700 1,364
Eastman Chemical Co. ............................ 1,800 80
Engelhard Corp. ................................. 3,100 60
Great Lakes Chemical Corp. ...................... 1,300 52
Hercules, Inc. .................................. 2,300 63
Morton International, Inc. ...................... 2,800 69
Nalco Chemical Co. .............................. 1,500 46
Praxair, Inc. ................................... 3,800 134
Rohm & Haas Co. ................................. 3,900 117
Sigma-Aldrich Corp. ............................. 2,100 62
Union Carbide Corp. ............................. 3,100 132
W.R. Grace & Co. ................................ 1,700 27
-------
2,869
Commercial Services - 0.6%
Cendant Corp. * ................................. 19,606 374
Deluxe Corp. .................................... 1,700 62
103
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Commercial Services - Continued
Ecolab, Inc. .................................... 3,100 $ 112
Equifax, Inc. ................................... 3,300 113
Interpublic Group Cos., Inc. .................... 3,250 259
Moore Corp., Ltd. ............................... 1,700 19
Omnicom Group Inc. .............................. 3,800 220
R.R. Donnelley & Sons Co. ....................... 3,200 140
--------
1,299
Computer Equipment - 6.7%
3Com Corp. * .................................... 8,200 368
Apple Computer, Inc. * .......................... 3,000 123
Compaq Computer Corp. ........................... 38,611 1,619
Data General Corp. * ............................ 1,300 21
Dell Computer Corp. * ........................... 29,100 2,130
Gateway 2000, Inc. * ............................ 3,500 179
HBO & Company ................................... 10,900 313
Hewlett-Packard Co. ............................. 23,700 1,619
Intel Corp. ..................................... 38,100 4,517
International Business Machines Corp ............ 21,300 3,935
Xerox Corp. ..................................... 7,500 885
--------
15,709
Computer Software and Services - 6.1%
Adobe Systems, Inc. ............................. 1,500 70
America Online, Inc. * .......................... 2,400 347
Autodesk, Inc. .................................. 900 38
BMC Software, Inc. * ............................ 4,900 218
Cabletron Systems, Inc. * ....................... 4,000 34
Ceridian Corp. * ................................ 1,600 112
Computer Associates International, Inc .......... 12,525 534
Computer Sciences Corp. * ....................... 3,700 239
Electronic Data Systems Corp. ................... 11,300 568
EMC Corp. * ..................................... 11,400 969
First Data Corp. ................................ 10,200 323
IMS Health, Inc. ................................ 3,800 287
Microsoft Corp. ................................. 56,900 7,891
Novell, Inc. * .................................. 8,100 147
Oracle Corp. * .................................. 22,150 955
Parametric Technology Co. * ..................... 5,900 97
Peoplesoft, Inc. ................................ 5,300 100
Seagate Technology, Inc. * ...................... 5,500 166
Shared Medical Systems Corp. .................... 500 25
Silicon Graphics, Inc. * ........................ 4,200 54
Sun Microsystems, Inc. * ........................ 8,700 745
Unisys Corp. * .................................. 5,800 200
--------
14,119
Construction - 0.0%
Armstrong World Industries, Inc. ................ 900 54
Foster Wheeler Corp. ............................ 600 8
--------
62
Consumer - Miscellaneous - 1.2%
American Greetings Corp. - Cl. A ................ 1,500 62
Avery Dennison Corp. ............................ 2,700 122
Black & Decker Corp. ............................ 2,100 118
Briggs & Stratton Corp. ......................... 500 25
Clorox Co. ...................................... 2,400 280
Fortune Brands, Inc. ............................ 3,700 117
Honeywell, Inc. ................................. 2,900 218
Jostens, Inc. ................................... 600 16
Parker-Hannifin Corp. ........................... 2,550 83
Rubbermaid, Inc. ................................ 3,300 104
Service Corp. International ..................... 5,800 221
Sherwin-Williams Co. ............................ 4,000 117
Snap-On, Inc. ................................... 1,300 45
Stanley Works ................................... 1,800 50
Tupperware Corp. ................................ 1,100 18
Unilever NV - NY Shares ......................... 14,600 1,211
--------
2,807
Containers - 0.1%
Bemis Company, Inc. ............................. 1,200 46
Crown Cork & Seal Co., Inc. ..................... 2,800 86
Owens-Illinois, Inc. * .......................... 3,500 107
Sealed Air Corp. * .............................. 1,789 91
--------
330
Cosmetics and Personal Care Products - 2.2%
Alberto-Culver Co. .............................. 1,300 35
Avon Products, Inc. ............................. 5,900 261
Colgate-Palmolive Co. ........................... 6,700 622
Gillette Co. .................................... 25,200 1,218
International Flavors & Fragrances, Inc ......... 2,500 110
Procter & Gamble Co. ............................ 30,300 2,767
--------
5,013
Diversified Operations - 5.0%
Cooper Industries, Inc. ......................... 2,500 119
Corning, Inc. ................................... 5,400 243
Crane Co. ....................................... 1,350 41
Danaher Corp. ................................... 3,000 163
Eastern Enterprises ............................. 500 22
Eaton Corp. ..................................... 1,600 113
General Electric Co. ............................ 74,800 7,634
Illinois Tool Works, Inc. ....................... 5,600 325
Minnesota Mining & Manufacturing Co ............. 9,200 654
National Service Industries, Inc. ............... 900 34
Pall Corp. ...................................... 2,800 71
PPG Industries, Inc. ............................ 4,000 233
Raychem Corp. ................................... 1,800 58
Seagram Co., Ltd. ............................... 9,100 346
Tenneco, Inc. ................................... 3,900 133
Textron, Inc. ................................... 3,700 281
Tyco International, Ltd. ........................ 14,716 1,110
--------
11,580
104
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - 2.3%
AES Corp. * ..................................... 4,000 $ 189
Ameren Corp. .................................... 3,100 132
American Electric Power Co. ..................... 4,400 207
Baltimore Gas & Electric Co. .................... 3,700 114
Carolina Power & Light Co. ...................... 3,600 169
Central & South West Corp. ...................... 4,700 129
Cinergy Corp. ................................... 3,500 120
Consolidated Edison, Inc. ....................... 5,500 291
Dominion Resources, Inc. ........................ 4,500 210
DTE Energy Co. .................................. 3,300 141
Duke Energy Co. ................................. 8,344 535
Edison International ............................ 8,100 226
Entergy Corp. ................................... 5,800 181
Firstenergy Corp. ............................... 5,600 182
FPL Group, Inc. ................................. 4,100 253
GPU, Inc. ....................................... 2,900 128
Houston Industries, Inc. ........................ 6,524 210
New Century Energies, Inc. ...................... 2,600 127
Niagara Mohawk Power Corp. ...................... 4,000 65
Northern States Power Co. ....................... 3,500 97
PacifiCorp ...................................... 6,600 139
Peco Energy Co. ................................. 5,200 216
PG & E Corp. .................................... 8,700 274
PP & L Resources, Inc. .......................... 3,500 98
Public Services Enterprise Group, Inc ........... 5,200 208
Southern Co. .................................... 16,100 468
Texas Utilities Co. ............................. 6,312 295
--------
5,404
Electrical Equipment - 0.4%
EG & G, Inc. .................................... 1,000 28
Emerson Electric Co. ............................ 10,100 611
Unicom Corp. .................................... 4,900 189
--------
828
Electronic Products and Services - 3.1%
Advanced Micro Devices, Inc. * .................. 3,300 95
AMP, Inc. ....................................... 4,938 257
Applied Materials, Inc. * ....................... 8,500 363
Ball Corp. ...................................... 800 37
Cisco Systems, Inc. * ........................... 36,025 3,343
KLA-Tencor Corp. * .............................. 2,000 87
LSI Logic Corp. * ............................... 2,900 47
Micron Technology, Inc. * ....................... 4,900 248
Millipore Corp. ................................. 800 23
Motorola, Inc. .................................. 13,600 830
National Semiconductor Corp. * .................. 3,900 53
Pitney Bowes, Inc. .............................. 6,300 416
Polaroid Corp. .................................. 800 15
Rockwell International Corp. * .................. 4,400 214
Solectron Corp. * ............................... 2,700 251
Tektronix, Inc. ................................. 900 27
Texas Instruments, Inc. ......................... 9,000 770
Thomas & Betts Corp. ............................ 1,200 52
--------
7,128
Engineering and Construction - 0.0%
Fluor Corp. ..................................... 1,600 68
Financial Services - 2.1%
American Express Co. ............................ 10,300 1,053
Associates First Capital Corp. -
Cl. A .......................................... 16,606 704
Capital One Financial Corp. ..................... 1,500 173
Citigroup, Inc. ................................. 51,952 2,572
Paychex, Inc. ................................... 3,800 195
Providian Financial Corp. * ..................... 3,150 236
--------
4,933
Food, Beverage and Tobacco - 6.0%
Adolph Coors Co. - Cl. B ........................ 800 45
Anheuser-Busch Cos., Inc. ....................... 11,000 722
Archer-Daniels-Midland Co. ...................... 13,818 237
Bestfoods ....................................... 6,400 341
Brown-Forman Corp. .............................. 1,500 113
Campbell Soup Co. ............................... 10,100 555
Coca-Cola Co. ................................... 56,300 3,765
Coca-Cola Enterprises, Inc. ..................... 9,200 329
ConAgra, Inc. ................................... 11,300 356
General Mills, Inc. ............................. 3,600 280
H.J. Heinz Co. .................................. 8,400 476
Hershey Foods Corp. ............................. 3,300 205
Kellogg Co. ..................................... 9,400 321
PepsiCo, Inc. ................................... 33,500 1,371
Philip Morris Cos., Inc. ........................ 55,600 2,975
Quaker Oats Co. ................................. 3,000 178
Ralston-Ralston Purina Group .................... 7,000 227
RJR Nabisco Holdings Corp. ...................... 7,500 223
Sara Lee Corp. .................................. 21,000 592
SUPERVALU, Inc. ................................. 2,600 73
Sysco Corp. ..................................... 7,500 206
UST, Inc. ....................................... 4,100 143
Wm. Wrigley Jr. Co. ............................. 2,700 242
--------
13,975
Health Care Products - 11.4%
Abbott Laboratories ............................. 34,500 1,690
Allergan, Inc. .................................. 1,400 91
ALZA Corp. * .................................... 2,200 115
American Home Products Corp. * .................. 30,200 1,701
Amgen, Inc. * ................................... 5,800 606
Bausch & Lomb, Inc. ............................. 1,200 72
Baxter International, Inc. ...................... 6,600 424
Becton, Dickinson & Co. ......................... 5,600 239
Biomet, Inc. .................................... 2,600 105
Boston Scientific Corp. * ....................... 8,800 236
Bristol-Myers Squibb Co. ........................ 22,700 3,037
C.R. Bard, Inc. ................................. 1,200 59
Cardinal Health, Inc. ........................... 4,700 357
105
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Eli Lilly & Co. ................................. 25,100 $ 2,231
Guidant Corp. ................................... 3,500 386
Johnson & Johnson ............................... 30,600 2,567
Mallinckrodt, Inc. .............................. 1,600 49
Medtronic, Inc. ................................. 11,200 832
Merck & Co., Inc. ............................... 27,200 4,017
Pfizer, Inc. .................................... 29,600 3,713
Pharmacia & Upjohn, Inc. ........................ 11,700 662
Schering-Plough Corp. ........................... 33,500 1,851
St. Jude Medical, Inc. * ........................ 1,900 53
Warner-Lambert Co. .............................. 18,700 1,406
--------
26,499
Health Care Services - 0.4%
Columbia/HCA Healthcare Corp. ................... 14,950 370
HCR Manor Care, Inc. * .......................... 2,600 76
HEALTHSOUTH Corp. * ............................. 10,300 159
Humana, Inc. * .................................. 4,100 73
Tenet Healthcare Corp. * ........................ 6,900 181
United Healthcare Corp. ......................... 4,400 190
--------
1,049
Household Appliances / Furnishings - 0.2%
Maytag Corp. .................................... 2,000 124
Newell Co. ...................................... 3,700 153
Springs Industries, Inc. - Cl. A ................ 300 12
Whirlpool Corp. ................................. 1,800 100
--------
389
Housing - 0.2%
Centex Corp. .................................... 1,300 59
Fleetwood Enterprises ........................... 700 24
Kaufman & Broad Home Corp. ...................... 800 23
Masco Corp. ..................................... 7,700 221
Owens Corning ................................... 1,300 46
Pulte Corp. ..................................... 900 25
--------
398
Insurance - 3.5%
Aetna, Inc. ..................................... 3,300 259
Allstate Corp. .................................. 18,900 730
American General Corp. .......................... 5,721 446
American International Group, Inc. .............. 24,000 2,319
Aon Corp. ....................................... 3,800 210
Chubb Corp. ..................................... 3,700 240
Cigna Corp. ..................................... 4,800 371
Cincinnati Financial Corporation ................ 3,700 136
Conseco, Inc. ................................... 7,091 217
Hartford Financial Services Group, Inc .......... 5,400 296
Jefferson-Pilot Corp. ........................... 2,350 176
Lincoln National Corp. .......................... 2,300 188
Loews Corp. ..................................... 2,700 265
Marsh & McLennan Cos., Inc. ..................... 5,900 345
MBIA, Inc. ...................................... 2,300 151
MGIC Investment Corp. ........................... 2,600 104
Perkin-Elmer Corp. .............................. 1,100 107
Progressive Corp. ............................... 1,700 288
Provident Cos., Inc. ............................ 3,100 129
Safeco Corp. .................................... 3,400 146
St. Paul Cos., Inc. ............................. 5,514 192
SunAmerica, Inc. ................................ 4,900 397
Torchmark, Inc. ................................. 3,200 113
Transamerica Corp. .............................. 1,400 162
UNUM Corp. ...................................... 3,100 181
--------
8,168
Leisure and Recreation - 0.7%
Brunswick Corp. ................................. 2,400 59
Carnival Corp. .................................. 8,400 403
Eastman Kodak Co. ............................... 7,300 526
Harrah's Entertainment, Inc. * .................. 2,200 35
Hasbro, Inc. .................................... 3,150 114
Hilton Hotels Corp. ............................. 5,800 111
Marriott International, Inc. - Cl A ............. 5,500 159
Mattel, Inc. .................................... 6,400 146
Mirage Resorts, Inc. ............................ 3,700 55
--------
1,608
Machinery - 0.5%
Case Corp ....................................... 1,600 35
Caterpillar, Inc. ............................... 8,200 377
Deere & Co. ..................................... 5,300 175
Dover Corp. ..................................... 5,300 194
FMC Corp. * ..................................... 800 45
Harnischfeger Industries, Inc. .................. 800 8
Ingersoll-Rand Co. .............................. 3,900 183
McDermott International, Inc. ................... 1,400 35
NACCO Industries, Inc. - Cl. A .................. 200 18
Thermo Electron Corp. * ......................... 3,300 56
W.W. Grainger, Inc. ............................. 2,300 96
--------
1,222
Media - Publishing - 0.5%
Dow Jones & Co., Inc. ........................... 2,200 106
Gannett Co., Inc. ............................... 6,500 419
Knight-Ridder, Inc. ............................. 1,700 87
Meredith Corp. .................................. 1,200 45
New York Times Co. .............................. 4,400 153
Times Mirror Co. - Cl. A ........................ 2,000 112
Tribune Co. ..................................... 2,800 185
--------
1,107
Media - TV / Radio - 2.6%
CBS Corp. * ..................................... 16,000 524
Clear Channel Communications, Inc. * ............ 6,000 327
Comcast Corp. - Cl. A ........................... 8,500 499
King World Productions, Inc. * .................. 1,700 50
McGraw-Hill Cos., Inc. .......................... 2,200 224
106
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV / Radio - Continued
Tele-Communications, Inc. - Cl. A * ............. 12,400 $ 686
The Walt Disney Co. ............................. 46,900 1,407
Time Warner, Inc. ............................... 27,900 1,731
Viacom, Inc. - Cl. B * .......................... 8,000 592
--------
6,040
Metal Product and Fabrication - 0.1%
Milacron, Inc. .................................. 700 14
Reynolds Metals Co. ............................. 1,600 84
Timken Co. ...................................... 1,600 30
Worthington Industries, Inc. .................... 1,800 23
--------
151
Metals and Mining - 0.3%
Alcan Aluminium, Ltd. ........................... 5,400 146
Aluminum Co. of America ......................... 4,400 328
Asarco, Inc. .................................... 700 11
Cyprus Amax Minerals Co. ........................ 2,200 22
Inco, Ltd. ...................................... 3,800 40
Phelps Dodge Corp. .............................. 1,200 61
--------
608
Natural Gas Distribution - 0.5%
Columbia Energy Group, Inc. ..................... 1,900 110
Consolidated Natural Gas Co. .................... 2,100 113
Enron Corp. ..................................... 7,500 428
NICOR, Inc. ..................................... 1,100 46
Peoples Energy Corp. ............................ 800 32
Sempra Energy * ................................. 5,255 133
Williams Cos., Inc. ............................. 9,700 303
--------
1,165
Oil - 1.0%
Royal Dutch Petroleum Co. - NY
Shares ......................................... 49,000 2,346
Oil - Equipment and Services - 0.4%
Baker Hughes, Inc. .............................. 7,800 138
Halliburton Co. ................................. 9,900 293
ONEOK, Inc. ..................................... 600 22
Schlumberger, Ltd. .............................. 12,500 577
--------
1,030
Oil and Natural Gas Exploration and Production - 4.7%
Amerada Hess Corp. .............................. 2,300 114
Amoco Corp. ..................................... 21,600 1,304
Anadarko Petroleum Corp. ........................ 2,900 90
Apache Corp. .................................... 2,100 53
Ashland, Inc. ................................... 1,900 92
Atlantic Richfield Co. .......................... 7,400 483
Burlington Resources, Inc. ...................... 3,910 140
Chevron Corp. ................................... 14,800 1,227
Coastal Corp. ................................... 5,000 175
Exxon Corp. ..................................... 55,500 4,058
Helmerich & Payne, Inc. ......................... 1,200 23
Kerr-McGee Corp. ................................ 1,000 38
Mobil Corp. ..................................... 17,800 1,551
Occidental Petroleum Corp. ...................... 7,800 132
Oryx Energy Co. * ............................... 2,900 39
Phillips Petroleum Co. .......................... 5,700 243
Rowan Cos., Inc. * .............................. 2,100 21
Sonat, Inc. ..................................... 2,300 62
Sunoco, Inc. .................................... 2,000 72
Texaco, Inc. .................................... 12,200 645
Union Pacific Resources Group, Inc. ............. 5,408 49
Unocal Corp. .................................... 5,500 161
USX-Marathon Group .............................. 6,800 205
--------
10,977
Paper and Forest Products - 0.9%
Boise Cascade Corp. ............................. 1,400 43
Champion International Corp. .................... 2,100 85
Fort James Corp. ................................ 5,000 200
Georgia-Pacific Corp. ........................... 2,000 117
International Paper Co. ......................... 6,900 309
Kimberly-Clark Corp. ............................ 12,500 681
Louisiana-Pacific Corp. ......................... 2,400 44
Mead Corp. ...................................... 2,300 67
Potlatch Corp. .................................. 500 19
Temple-Inland, Inc. ............................. 1,200 71
Union Camp Corp. ................................ 1,500 101
Westvaco Corp. .................................. 2,200 59
Weyerhaeuser Co. ................................ 4,500 229
Willamette Industries, Inc. ..................... 2,700 91
--------
2,116
Personal and Commercial Lending - 0.5%
Countrywide Credit Industries, Inc. ............. 2,700 135
Household International, Inc. ................... 10,966 434
MBNA Corp. ...................................... 17,275 431
SLM Holding Corp. ............................... 3,700 178
--------
1,178
Pollution Control - 0.3%
Browning-Ferris Industries, Inc. ................ 4,100 117
Waste Management, Inc. .......................... 12,957 604
--------
721
Precious Metals/Gems/Stones - 0.2%
Barrick Gold Corp. .............................. 8,800 171
Battle Mountain Gold Co. ........................ 5,500 23
Freeport-McMoRan Copper & Gold .................. 4,000 42
Homestake Mining Co. ............................ 5,900 54
Newmont Mining Corp. ............................ 3,801 69
Placer Dome, Inc. ............................... 5,500 63
--------
422
Retail - Department Stores - 5.0%
Circuit City Stores, Inc. ....................... 2,200 110
Consolidated Stores Corp. ....................... 2,700 55
107
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Retail - Department Stores - Continued
Costco Cos., Inc. * ............................. 4,900 $ 354
Dayton-Hudson Corp. ............................. 10,000 542
Dillard's, Inc. ................................. 2,300 65
Dollar General Corp. ............................ 4,150 98
Federated Department Stores, Inc. * ............. 4,800 209
Fred Meyer, Inc. * .............................. 3,600 217
Gap, Inc. ....................................... 13,450 757
Harcourt General, Inc. .......................... 1,500 80
Home Depot, Inc. ................................ 35,700 2,184
J.C. Penney, Inc. ............................... 5,700 267
Kmart Corp. * ................................... 11,400 175
Kohl's Corp. .................................... 3,800 233
Limited, Inc. ................................... 5,200 151
Lowe's Cos., Inc. ............................... 8,200 420
May Department Stores Co. ....................... 5,400 326
Nordstrom, Inc. ................................. 3,600 125
Sears, Roebuck & Co. ............................ 8,800 374
Staples, Inc. * ................................. 7,300 319
Tandy Corp. ..................................... 2,400 99
TJX Cos., Inc. .................................. 7,500 217
Toys "R" Us, Inc. * ............................. 5,600 95
Venator Group, Inc. ............................. 2,400 15
Wal-Mart Stores, Inc. ........................... 51,400 4,186
--------
11,673
Retail - Drug Stores - 0.6%
CVS Corp. ....................................... 8,900 489
Longs Drug Stores, Inc. ......................... 900 34
Rite Aid Corp. .................................. 6,000 297
Walgreen Co. .................................... 11,300 662
--------
1,482
Retail - Food - 1.4%
Albertson's, Inc. ............................... 5,500 350
American Stores Co. ............................. 6,200 229
Darden Restaurants, Inc. ........................ 3,100 56
Kroger Co. * .................................... 5,900 357
McDonald's Corp. ................................ 15,400 1,180
Safeway, Inc. * ................................. 11,100 676
The Great Atlantic & Pacific Tea
Company, Inc. .................................. 1,000 30
Tricon Global Restaurants, Inc. * ............... 3,550 178
Wendy's International, Inc. ..................... 2,800 61
Winn-Dixie Stores, Inc. ......................... 3,300 148
--------
3,265
Shoe and Apparel Manufacturing - 0.2%
Fruit of the Loom, Inc. * ....................... 1,500 21
Liz Claiborne, Inc. ............................. 1,500 47
Nike, Inc. ...................................... 6,500 264
Reebok International, Ltd. ...................... 1,100 17
Russell Corp. ................................... 800 16
V.F. Corp. ...................................... 2,800 131
--------
496
Steel - 0.1%
Allegheny Teldyne, Inc. ......................... 4,600 94
Bethleham Steel Corp. * ......................... 3,200 27
Nucor Corp. ..................................... 1,900 82
USX-US Steel Group, Inc. ........................ 1,900 44
--------
247
Telecommunication Equipment - 2.1%
Andrew Corp. * .................................. 1,750 29
Ascend Communications, Inc. ..................... 5,000 329
General Instrument Corp. * ...................... 4,100 139
Lucent Technologies, Inc. ....................... 30,000 3,300
Northern Telecom, Ltd. .......................... 14,900 747
Scientific-Atlanta, Inc. ........................ 1,500 34
Tellabs, Inc. * ................................. 4,400 302
--------
4,880
Telecommunication Services - 0.9%
Airtouch Communications, Inc. * ................. 13,100 945
Frontier Corp. .................................. 3,900 133
MediaOne Group, Inc. ............................ 13,900 653
Nextel Communications, Inc. * ................... 6,500 153
Sprint PCS * .................................... 9,250 214
--------
2,098
Telephone - 7.6%
Alltel Corp. .................................... 6,200 371
Ameritech Corp. ................................. 25,200 1,597
AT&T Corp. ...................................... 41,300 3,108
Bell Atlantic Corp. ............................. 35,536 1,883
BellSouth Corp. ................................. 44,700 2,229
GTE Corp. ....................................... 22,100 1,437
MCI WorldCom, Inc. .............................. 41,885 3,005
SBC Communications, Inc. ........................ 44,548 2,389
Sprint Corp. .................................... 9,900 833
U.S. West, Inc. ................................. 11,397 737
--------
17,589
Transportation Services - 0.9%
AMR Corp. * ..................................... 4,200 249
Burlington Northern Santa Fe .................... 10,800 364
CSX Corp. ....................................... 4,900 203
Delta Air Lines, Inc. ........................... 3,400 177
FDX Corp. ....................................... 3,300 294
Laidlaw, Inc. ................................... 8,000 81
Norfolk Southern Corp. .......................... 8,600 273
Ryder System, Inc. .............................. 1,500 39
Southwest Airlines Co. .......................... 7,700 173
U.S. Airways Group, Inc. * ...................... 2,100 109
Union Pacific Corp. ............................. 5,600 252
--------
2,214
U.S. Government Agencies - 1.2%
Federal Home Loan Mortgage Corp. ................ 15,500 999
108
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
U.S. Government Agencies - Continued
Federal National Mortgage Assoc. ................ 23,700 $ 1,754
----------
2,753
----------
TOTAL COMMON STOCK- 100.2% 233,088
Par
Value
(000's)
SHORT-TERM INVESTMENTS
U.S. Governmental - 0.1%
U.S. Treasury Bills
4.405% due 03/18/99 # .......................... $ 230 228
4.420% due 03/18/99 # .......................... 20 20
----------
TOTAL SHORT-TERM INVESTMENTS- 0.1% 248
------- ----------
TOTAL INVESTMENTS- 100.3% 233,336
Payables, less cash and receivables- (0.3)% (758)
------- ----------
NET ASSETS- 100.0% $ 232,578
======= ==========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $248 have
been segregated to collateralize financial futures contracts.
See notes to financial statements.
109
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 2.4%
Argo-Tech Corp.
8.625% due 10/01/07 ............................. $ 100 $ 95
K & F Industries, Inc. - Sr. Sub. Notes
9.25% due 10/15/07 .............................. 260 263
----------
358
Auto and Truck Parts - 3.0%
Accuride Corp. - Sr. Sub. Notes Ser. B
9.25% due 02/01/08 .............................. 125 122
Hayes Lemmerz International, Inc.
9.125% due 07/15/07 ............................. 100 104
LDM Technologies, Inc.
10.75% due 01/15/07 ............................. 120 120
Numatics, Inc. - Ser. B
9.625% due 04/01/08 ............................. 100 94
----------
440
Banks - 0.3%
Western Financial Bank
8.875% due 08/01/07 ............................. 55 40
Chemicals - 1.9%
Lyondell Chemical Co. - Debs
9.8% due 02/01/20 ............................... 90 93
PCI Chemicals Canada, Inc.
9.25% due 10/15/07 .............................. 100 81
Sovereign Speciality Chemicals
9.5% due 08/01/07 ............................... 100 101
----------
275
Coal - 2.1%
P&L Coal Holdings Corp.
9.625% due 05/15/08 ............................. 300 305
Commercial Services - 2.9%
Iron Mountain, Inc.
8.75% due 09/30/09 .............................. 150 154
Pierce Leahy Corp. - Sr. Sub. Notes
9.125% due 07/15/07 ............................. 100 106
Sullivan Graphics, Inc.
12.75% due 08/01/05 ............................. 95 97
World Color Press, Inc. - Sr. Sub. Notes
144A (a)
8.375% due 11/15/08 ............................. 75 75
----------
432
Computer Software and Services - 3.9%
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07 ............................. 100 102
PSINet, Inc.
11.5% due 11/01/08 .............................. 75 78
PSINet, Inc. - Sr. Notes
10.0% due 02/15/05 .............................. 200 198
Verio, Inc. - Sr. Notes
10.375% due 04/01/05 ............................ 150 147
Verio, Inc. - Sr. Notes 144A (a)
11.25% due 12/01/08 ............................. 50 50
----------
575
Construction - 0.7%
Nortek, Inc.
9.125% due 09/01/07 ............................. 100 103
Consumer - Miscellaneous - 3.0%
CSC Holdings, Inc. - Debs
8.125% due 08/15/09 ............................. 50 53
Lin Holdings Corp. - Sr. Disc. Notes
1.0% due 03/01/08 ............................... 400 281
True Temper Sports, Inc. - Sr. Sub. Notes
144A (a)
10.875% due 12/01/08 ............................ 115 115
----------
449
Containers - 0.6%
Gaylord Container Corp. - Sr. Notes Ser. B
9.375% due 06/15/07 ............................. 100 88
Cosmetics and Personal Care Products - 1.3%
Revlon Consumer Products, Inc. - Sr. Sub.
Notes
8.625% due 02/01/08 ............................. 50 46
Revlon Worldwide - Sr. Disc. Notes
0.0% due 03/15/01 ............................... 250 143
----------
189
Diversified Operations - 1.7%
Consumers International - Sr. Notes
10.25% due 04/01/05 ............................. 30 32
Fisher Scientific International, Inc. - Sr
Sub. Notes
9.0% due 02/01/08 ............................... 125 124
Mark IV Industries, Inc. - Sr. Sub. Notes
7.75% due 04/01/06 .............................. 50 50
Neenah Corp. - Sr. Sub. Notes 144A (a)
11.125% due 05/01/07 ............................ 40 41
----------
247
Electrical Equipment - 0.7%
Wesco Distribution, Inc. - Ser. B
9.125% due 06/01/08 ............................. 100 100
Electronic Products and Services - 1.9%
Advanced Micro Devices
11.0% due 08/01/03 .............................. 170 182
Fairchild Semiconductor - Sr. Sub. Notes
10.125% due 03/15/07 ............................ 100 99
----------
281
Financial Services - 2.6%
AMSC Acquisition Co., Inc. - Ser. B
12.25% due 04/01/08 ............................. 50 31
Contifinancial Corp. - Sr. Notes
8.125% due 04/01/08 ............................. 175 124
110
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Financial Services - Continued
Olympic Financial, Ltd. - Sr. Notes
11.5% due 03/15/07 .............................. $ 125 $ 92
Tembec Finance Corp. - Sr. Notes
9.875% due 09/30/05 ............................. 125 131
----------
378
Food, Beverage and Tobacco - 1.9%
Aurora Foods, Inc. - Sr. Sub. Notes
9.875% due 02/15/07 ............................. 50 55
Aurora Foods, Inc. - Sr. Sub. Notes Ser. B
8.75% due 07/01/08 .............................. 30 31
Del Monte Foods Co. - Sr. Disc. Notes Ser. B
12.5% due 12/15/07 .............................. 210 144
Nash-Finch Co. - Ser. B
8.5% due 05/01/08 ............................... 50 47
----------
277
Foreign - 0.3%
Satelites Mexicanos SA - Sr. Notes
10.125% due 11/01/04 ............................ 50 42
Health Care Products - 1.7%
Beckman Coulter, Inc.
7.45% due 03/04/08 .............................. 30 30
Owens & Minor, Inc.
10.875% due 06/01/06 ............................ 211 227
----------
257
Health Care Services - 1.2%
Tenet Healthcare Corp. - Sr. Sub. Notes
8.125% due 12/01/08 ............................. 175 181
Housing - 4.2%
American Standard Cos., Inc.
7.375% due 02/01/08 ............................. 100 100
7.625% due 02/15/10 ............................. 35 35
Engle Homes, Inc. - Ser. C
9.25% due 02/01/08 .............................. 90 90
Falcon Building Products, Inc.
1.0% due 06/15/07 ............................... 125 74
9.5% due 06/15/07 ............................... 50 45
Grove Worldwide Llc - Sr. Sub. Notes
9.25% due 05/01/08 .............................. 40 36
Nortek, Inc. - Sr. Notes
9.25% due 03/15/07 .............................. 25 26
Standard Pacific Corp. - Sr. Notes
8.5% due 06/15/07 ............................... 210 213
----------
619
Insurance - 0.6%
Conseco, Inc. - Notes
6.8% due 06/15/05 ............................... 100 94
Leisure and Recreation - 2.7%
Argosy Gaming Co.
13.25% due 06/01/04 ............................. 250 280
Fitzgeralds Gaming Corp.
12.25% due 12/15/04 ............................. 35 19
Station Casinos, Inc. - Sr. Sub. Notes 144A (a)
8.875% due 12/01/08 ............................. 100 100
----------
399
Media - Publishing - 0.3%
Big Flower Press Holdings, Inc. - Sr. Sub.
Notes 144A (a)
8.625% due 12/01/08 ............................. 50 50
Media - TV / Radio - 12.1%
Adelphia Communications Corp. - Sr. Notes
8.375% due 02/01/08 ............................. 200 207
Allbritton Communications Co.
9.75% due 11/30/07 .............................. 250 265
Allbritton Communications Co. - Sr. Sub. Notes
8.875% due 02/01/08 ............................. 40 40
Century Communications Corp. - Cl. A
8.875% due 01/15/07 ............................. 15 17
Century Communications Corp. - Sr. Disc. Notes
0.0% due 01/15/08 ............................... 500 257
Classic Cable, Inc. - Sr. Sub. Notes 144A (a)
9.875% due 08/01/08 ............................. 120 125
EchoStar Satellite Broadcast
1.0% due 03/15/04 ............................... 150 150
Frontiervision Holding L.P. - Sr. Disc. Notes
1.0% due 09/15/07 ............................... 200 167
Granite Broadcassting Corp. - Sr. Sub. Notes
8.875% due 05/15/08 ............................. 175 167
Iridium Operating LLC/Capital
11.25% due 07/15/05 ............................. 150 129
Jacor Communications, Inc.
9.75% due 12/15/06 .............................. 200 222
Young Broadcasting, Inc.
8.75% due 06/15/07 .............................. 50 50
----------
1,796
Metals and Mining - 1.0%
Johnstown America Industries, Inc.
11.75% due 08/15/05 ............................. 45 47
Johnstown America Industries, Inc. - Sr. Sub.
Notes
11.75% due 08/15/05 ............................. 100 106
----------
153
Natural Gas Distribution - 0.8%
Energy Corp. of America - Sr. Sub. Notes
9.5% due 05/15/07 ............................... 125 116
Oil - Equipment and Services - 0.6%
Tuboscope, Inc.
7.5% due 02/15/08 ............................... 100 94
Oil and Natural Gas Exploration and Production - 5.3%
Abraxas Petro
11.5% due 11/01/04 .............................. 150 114
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06 ............................. 125 90
111
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Oil and Natural Gas Exploration and Production - Continued
Cross Timbers Oil Co. - Sr. Sub. Notes
8.75% due 11/01/09 ............................... $ 100 $ 89
Dailey International, Inc.
9.5% due 02/15/08 ................................ 225 105
Petroleos Mexicanos
8.85% due 09/15/07 ............................... 175 159
Plains Resources, Inc. - Sr. Sub. Notes
10.25% due 03/15/06 .............................. 125 126
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06 ............................. 100 98
----------
781
Paper and Forest Products - 2.5%
American Pad & Paper - Sr. Sub. Notes
13.0% due 11/15/05 .............................. 110 64
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04 .............................. 100 78
Grupo Industrial Durango - Notes
12.625% due 08/01/03 ............................ 100 87
Repap New Brunswick, Inc.
9.0% due 06/01/04 ............................... 60 54
10.625% due 04/15/05 ............................ 125 85
-----------
368
Personal and Commercial Lending - 0.2%
AMRESCO, Inc. - Sr. Sub. Notes Ser. 98-A
9.875% due 03/15/05 ............................. 50 35
Pollution Control - 0.3%
Allied Waste NA - Sr. Notes 144A (a)
7.625% due 01/01/06 ............................. 40 40
Retail - Drug Stores - 1.6%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08 .............................. 225 232
Retail - Food - 0.4%
Disco S.A. - Notes
9.875% due 05/15/08 ............................. 45 38
Stater Bros. Holdings, Inc.
9.0% due 07/01/04 ............................... 20 20
-----------
58
Shoe and Apparel Manufacturing - 0.6%
Galey & Lord, Inc.
9.125% due 03/01/08 ............................. 100 87
Steel - 4.1%
AK Steel Corp. - Sr. Notes
9.125% due 12/15/06 ............................. 150 156
AmeriSteel Corp.
8.75% due 04/15/08 .............................. 50 48
Armco, Inc. - Sr. Notes
9.0% due 09/15/07 ............................... 120 122
Armco, Inc. - Sr. Notes 144A (a)
8.875% due 12/01/08 ............................. 75 75
Bayou Steel Corp.
9.5% due 05/15/08 ............................... 170 160
Weirton Steel Corp. - Sr. Notes
11.375% due 07/01/04 ............................ 50 46
----------
607
Telecommunication Equipment - 0.7%
L-3 Communications Corp. Sr. Sub. Notes
8.5% due 05/15/08 ............................... 35 36
Paging Network, Inc.
10.125% due 08/01/07 ............................ 75 73
----------
109
Telecommunication Services - 20.8%
BTI Telecom Corp. - Sr. Notes
10.5% due 09/15/07 .............................. 125 92
Echostar DBS Corp.
12.5% due 07/01/02 .............................. 125 144
Falcon Holding Group L.P. - Debs. Ser. B
8.375% due 04/15/10 ............................. 225 229
Fonda Group, Inc. - Sr. Sub. Notes
9.5% due 03/01/07 ............................... 125 104
GCI, Inc. - Sr. Notes
9.75% due 08/01/07 .............................. 250 245
Globalstar LP/Capital Corp. - Global Star
10.75% due 11/01/04 ............................. 125 90
GST Telecommunications, Inc. - Sr. Sub. Notes
12.75% due 11/15/07 ............................. 50 46
Hyperion Telecommunications, Inc. - Sr. Notes
12.25% due 09/01/04 ............................. 50 51
Innova State of DE R.L. - Sr. Notes
12.875% due 04/01/07 ............................ 100 68
Intermedia Communications, Inc. - Sr. Notes
Ser. B
8.6% due 06/01/08 ............................... 50 48
8.875% due 11/01/07 ............................. 275 265
ITC DeltaCom, Inc. - Sr. Notes 144A (a)
9.75% due 11/15/08 .............................. 25 26
IXC Communications, Inc. - Sr. Sub Notes
9.0% due 04/15/08 ............................... 125 125
KMC Telecom Holdings, Inc. - Sr. Disc. Notes
1.0% due 02/15/08 ............................... 250 120
Level 3 Communications, Inc. - Sr. Notes
9.125% due 05/01/08 ............................. 175 174
MasTec, Inc. - Sr. Sub. Notes
7.75% due 02/01/08 .............................. 95 92
MGC Communications, Inc. - Sr. Notes Ser. B
13.0% due 10/01/04 .............................. 25 17
Nextel Communications - Sr. Disc. Notes
1.0% due 10/31/07 ............................... 550 335
NTL, Inc. - Sr. Notes 144A (a)
1.0% due 10/01/08 ............................... 315 197
Price Communications Wireless, Inc. - Sr
Notes 144A (a)
9.125% due 12/15/06 ............................. 100 101
112
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telecommunication Services - Continued
Qwest Communications International, Inc. - Sr.
Notes
7.5% due 11/01/08 ............................... $ 125 $ 131
Rogers Cantel, Inc. - Sr. Notes
8.3% due 10/01/07 ............................... 50 50
RSL Communications plc
9.125% due 03/01/08 ............................. 100 91
Telecommunications Techniques Co. ...............
9.75% due 05/15/08 .............................. 140 136
Time Warner Telecom Llc - Sr. Notes
9.75% due 07/15/08 .............................. 100 105
----------
3,082
Telephone - 2.5%
e.spire Communications, Inc. - Sr. Disc. Notes
1.0% due 04/01/06 ............................... 100 62
1.0% due 07/01/08 ............................... 100 41
ITC DeltaCom, Inc. - Sr. Notes
8.875% due 03/01/08 ............................. 50 50
NEXTLINK Communications, Inc. - Sr. Disc ........
Notes
1.0% due 04/15/08 ............................... 300 172
Viatel, Inc. - Sr. Notes
11.25% due 04/15/08 ............................. 50 50
----------
375
Transportation Services - 0.5%
MTL, Inc. - Sr. Sub. Notes
10.0% due 06/15/06 .............................. 70 68
----------
TOTAL PUBLICLY-TRADED BONDS- 95.9% 14,180
Shares
PREFERRED STOCK
Media - Publishing - 0.8%
Primedia, Inc. .................................. 1 120
Telephone - 0.0%
Viatel, Inc. - Ser. A ........................... 3
----------
TOTAL PREFERRED STOCK- 0.8% 123
WARRANTS - 0.0%
Telecommunication Services - 0.0%
KMC Telecom Holdings, Inc. - WT 144A (a)
expires 04/15/08 (Cost $0) ..................... 250 1
SHORT-TERM INVESTMENTS - 1.4%
Investment in joint trading account (Note B)
6.101% due 01/04/99 ............................ $ 205 $ 205
---------- ----------
TOTAL INVESTMENTS- 98.1% 14,509
Cash and Receivables, less payables- 1.9% 280
---------- ----------
NET ASSETS- 100.0% $ 14,789
========== ==========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1998, securities aggregated $996 or
6.7% of net assets of the Portfolio.
See notes to financial statements.
113
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Auto and Truck Parts - 0.2%
Federal-Mogul Corp. - Notes (US)
7.75% due 07/01/06 ............................. $ 145 $ 147
Banks - 1.7%
First USA Secured Note Trust (US)
6.8% due 02/18/11 .............................. 600 609
KeyCorp - Sub. Notes (US)
6.75% due 03/15/06 ............................. 500 526
---------
1,135
Chemicals - 2.3%
Cytec Industries, Inc. - Notes (US)
6.846% due 05/11/05 ............................ 1,500 1,535
Computer Software and Services - 2.2%
Computer Associates International, Inc. - Sr.
Notes Ser. B (US)
6.25% due 04/15/03 ............................. 1,500 1,494
Electric Power - 0.5%
Southern California Edison Co. - 1st Ref
Mtge. Bonds (US)
7.125% due 07/15/25 ............................ 325 329
Energy - Alternative Source - 0.3%
Cogentrix Energy, Inc. - Sr. Notes 144A (a)
(US)
8.75% due 10/15/08 ............................. 200 196
Financial Services - 7.3%
Countrywide Home Loans - Ser. 1997-4 Cl. A
(US)
8.0% due 07/25/27 .............................. 440 451
Countrywide Home Loans - Ser. 1998-5 Cl. A
(US)
6.75% due 05/25/28 ............................. 857 864
Eaglemark Credit - Asset Backed. (US)
6.75% due 11/15/02 ............................. 141 143
Green Tree Financial Corp. (US)
6.39% due 01/15/29 ............................. 1,000 1,007
Lb Commercial Conduit Mortgage Trust (US)
6.33% due 11/18/04 ............................. 945 965
Morgan Stanley Capital, Inc. (US)
6.34% due 11/15/07 ............................. 223 228
6.59% due 10/03/30 ............................. 967 1,002
Onyx Acceptance Grantor Trust - Ser. 1996-2
Cl. A (US)
6.4% due 10/15/01 .............................. 98 99
Washington Mutual Capital I (US)
8.375% due 06/01/27 ............................ 100 110
---------
4,869
Food, Beverage and Tobacco - 0.3%
Smithfield Foods, Inc. - Sr. Sub. Notes (US)
7.625% due 02/15/08 ............................ 200 201
Foreign - 0.6%
Treuhandanstalt - Bonds (DE)
7.5% due 09/09/04 .............................. 550 396
Foreign Governmental - 25.9%
Bundesrepublic Deutschland - Bonds (DE)
6.75% due 04/22/03 ............................. 2,200 1,494
Federal Republic of Germany - Bonds (DE)
6.25% due 01/04/24 ............................. 1,630 1,177
8.0% due 07/22/02 .............................. 7,200 4,986
Government of Canada (CA)
8.0% due 06/01/27 .............................. 1,200 1,103
Government of France - Bonds (FR)
5.5% due 10/12/01 .............................. 7,000 1,327
5.5% due 04/25/07 .............................. 4,000 801
6.0% due 10/25/25 .............................. 8,900 1,893
6.5% due 10/25/06 .............................. 5,000 1,060
Kingdom of Denmark - Bullet Bond (DK)
8.0% due 03/15/06 .............................. 5,000 969
Province of Quebec - Debs. (CA)
6.5% due 01/17/06 .............................. 515 538
Republic of Costa Rica - Unsub. (LU)
8.0% due 05/01/03 .............................. 100 100
Republic of Korea - Unsub. (KR)
8.875% due 04/15/08 ............................ 100 103
Republic of Poland - Bonds (PL)
5.0% due 10/27/14 .............................. 150 140
U.K. Treasury - Bonds (GB)
7.5% due 12/07/06 .............................. 800 1,597
---------
17,288
Health Care Products - 2.3%
Mckesson Corp. - Notes (US)
6.4% due 03/01/08 .............................. 1,500 1,544
Insurance - 0.8%
Nationwide Financial Services, Inc. - Sr.
Notes (US)
8.0% due 03/01/27 .............................. 500 548
Media - TV / Radio - 2.7%
Cable & Wireless Communication - Notes (GB)
6.625% due 03/06/05 ............................ 1,500 1,514
Lenfest Communications, Inc. - Sr. Notes (US)
7.625% due 02/15/08 ............................ 150 155
TCI Communications, Inc. - Debs. (US)
7.875% due 02/15/26 ............................ 140 166
---------
1,835
Metal Product and Fabrication - 0.2%
Ryerson Tull, Inc. - Notes (US)
9.125% due 07/15/06 ............................ 100 111
Oil and Natural Gas Exploration and Production - 0.1%
Petroleos Mexicanos - 144A (a) (US)
9.574% due 07/15/05 ............................ 100 93
Personal and Commercial Lending - 1.8%
CS First Boston Mortgage Securities Corp. -
Ser. 1997-C1 Cl. A1B (US)
7.15% due 08/20/06 ............................. 700 737
114
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
STRATEGIC BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Personal and Commercial Lending - Continued
Discover Card Master Trust I (US)
5.6% due 05/15/06 .............................. $ 480 $ 481
----------
1,218
Pollution Control - 0.2%
Allied Waste NA - Sr. Notes 144A (a) (US)
7.625% due 01/01/06 ............................ 100 101
Retail - Department Stores - 0.5%
Fred Meyer, Inc. (US)
7.45% due 03/01/08 ............................. 300 322
Shoe and Apparel Manufacturing - 0.6%
Fruit of The Loom, Inc. - Notes (US)
6.5% due 11/15/03 .............................. 200 189
WestPoint Stevens, Inc. - Sr. Notes (US)
7.875% due 06/15/05 ............................ 205 208
----------
397
U.S. Government Agencies - 21.7%
Federal Gold Loan Mortgage Corp. (US)
8.0% due 02/01/27 .............................. 194 201
Federal Home Loan Mortgage Corp. (US)
6.5% due 02/15/19 .............................. 1,000 1,005
Federal National Mortgage Assoc. (US)
6.0% due 12/01/99 .............................. 4,250 4,194
6.5% due 05/01/13 .............................. 42 43
6.5% due 07/01/28 .............................. 66 67
6.5% due 12/01/99 .............................. 1,960 1,973
7.0% due 02/01/27 .............................. 345 352
8.0% due 12/01/26 .............................. 301 311
Government National Mortgage Assoc. (US)
7.0% due 03/15/28 .............................. 611 625
7.0% due 04/15/28 .............................. 79 81
7.0% due 05/15/28 .............................. 1,450 1,483
7.0% due 07/15/28 .............................. 345 353
7.0% due 09/15/28 .............................. 655 670
7.0% due 10/20/28 .............................. 936 953
7.0% due 12/15/99 .............................. 1,740 1,780
7.5% due 07/20/26 .............................. 369 380
----------
14,471
U.S. Governmental - 21.7%
U.S. Treasury - Bonds (US)
5.5% due 08/15/28 .............................. 750 785
10.375% due 11/15/12 ........................... 2,910 4,015
U.S. Treasury - Notes (US)
5.25% due 08/15/03 ............................. 720 738
5.375% due 06/30/00 ............................ 995 1,005
6.0% due 06/30/99 .............................. 100 101
6.875% due 05/15/06 # .......................... 4,905 5,546
7.875% due 11/15/04 ............................ 2,000 2,317
----------
14,507
----------
TOTAL PUBLICLY-TRADED BONDS- 93.9% 62,737
SHORT-TERM INVESTMENTS - 13.6%
Investment in joint trading account (Note B)
(US)
6.101% due 01/04/99 ............................ $9,043 $ 9,045
------ --------
TOTAL INVESTMENTS- 107.5% 71,782
Payables, less cash and receivables- (7.5)% (4,991)
------ --------
NET ASSETS- 100.0% $ 66,791
====== ========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1998, securities aggregated
$390 or 0.6% of net assets of the Portfolio.
# Securities, or a portion thereof, with an aggregate market value of $113
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market % of
Country Value Long-Term
Country Abbreviation (000's) Investments
United States .............. US $43,539 69.4%
Germany .................... DE 8,054 12.8%
France ..................... FR 5,080 8.1%
United Kingdom ............. GB 3,111 5.0%
Canada ..................... CA 1,641 2.6%
Denmark .................... DK 969 1.5%
Poland ..................... PL 140 0.2%
South Korea ................ KR 103 0.2%
Luxembourg ................. LU 100 0.2%
------- -----
$62,737 100.0%
======= =====
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 (formerly, International
Equities), Global Equity, Small Cap Growth, International Balanced, Mid Cap
Growth, Large Cap Value, Money Market, Mid Cap Value, Diversified Mid Cap Growth
(formerly, Special Opportunities), Bond Index, Small/Mid Cap CORE, Real Estate
Equity, Growth & Income, Managed, Short-Term Bond (formerly Short-Term U.S.
Government), 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
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
securities, when held by the Portfolios, are valued at fair value as determined
in good faith by the Board of Trustees.
Investment security transactions are recorded on the date of purchase or sale.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Dividend income for the Large Cap Growth,
Emerging Markets Equity, 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 $26, $6, $442, $13, $42, $7, $14, $5, $4, $235, $131,
$100, $14, 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 Sovereign Bond, Small Cap Growth and
Diversified Mid Cap Growth Portfolios of the Fund, along with other registered
investment companies having a management contract with John Hancock Advisers,
Inc. (the "Sub-Adviser"), an indirect wholly-owned subsidiary of John Hancock,
may participate in a joint repurchase agreement pursuant to an exemptive order
issued by the Securities and Exchange Commission. Aggregate cash balances are
invested in one or more repurchase agreements, whose underlying securities are
obligations of the U.S. Government and/or its agencies. The Fund's custodian
bank receives delivery of the underlying securities for the joint 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 December 31, 1998:
Par Market
Name of Issuer Value Value
-------------- -------- --------
American Express Co. .....................................
6.10% due 01/05/99 ...................................... $ 6,385 $ 6,380
5.85% due 01/06/99 ...................................... 2,662 2,660
Chrysler Financial Corp. .................................
5.85% due 01/06/99 ...................................... 40,000 39,968
Deere & Co. ..............................................
6.00% due 01/04/99 ..................................... 13,877 13,870
General Electric Capital Corp. ...........................
6.10% due 01/05/99 ..................................... 40,000 39,973
General Motors Acceptance Corp. ..........................
6.11% due 01/05/99 ..................................... 40,000 39,973
Household Finance Corp. ..................................
6.05% due 01/04/99 ..................................... 40,000 39,980
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
Par Market
Name of Issuer Value Value
-------------- -------- --------
Prudential Funding Corp. .................................
6.01% due 01/04/99 ..................................... $ 40,000 $ 39,980
Sears Roebuck Acceptance Corp. ...........................
6.01% due 01/04/99 ..................................... 40,000 39,980
-------- --------
Joint Trading Account Totals ........................ $262,924 $262,764
======== ========
Financial Futures Contracts: The Sovereign Bond, Emerging Markets Equity,
International Equity Index, Global Equity, Small Cap Growth, International
Balanced, Mid Cap Growth, Diversified Mid Cap Growth, Small/Mid Cap CORE,
Managed, Short-Term Bond, Equity Index, High Yield Bond and Strategic 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 December 31, 1998, open positions
in financial futures contracts were as follows:
INTERNATIONAL EQUITY INDEX PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Loss
- --------- ----------- ---------- ------------
27 contracts
Nikkei 225 Index Future............... March, 1999 $ 1,849 $(128)
MANAGED PORTFOLIO
Face
Expiration Amount Unrealized
Sold Date at Value Gain/(Loss)
- ---- ----------- ---------- -------------
15 contracts
Japan 10 Year Bond Future ........... March, 1999 $16,970 $ 207
43 contracts
U.S. 10 Year Treasury Note Future ... March, 1999 5,124 (29)
------- -----
Purchased 22,094 178
- --------- ------- -----
49 contracts
German 10 Year Bond Future........... March, 1999 $ 8,510 $ 8
28 contracts
Long Gilt Bond Future ............... March, 1999 5,556 130
------- -----
14,066 138
------- -----
$36,160 $ 316
======= =====
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
EQUITY INDEX PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
- --------- ----------- ---------- ------------
17 contracts
S & P 500 Index Future ............... March, 1999 $5,293 $256
STRATEGIC BOND PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
- --------- ----------- ---------- ------------
13 contracts
U.S. Long Bond Future............... March, 1999 $1,661 $ 14
Forward Foreign Currency Contracts: The Fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage the
Portfolio's currency exposure. Contracts to buy generally are used to acquire
exposure to foreign currencies, while contracts to sell are used to hedge the
Portfolio's investments against currency fluctuations. Neither type of foreign
currency transaction will eliminate fluctuations in the prices of the
Portfolio's securities or prevent loss if the price of such securities should
decline. The U.S. dollar value of a forward foreign currency contract is
determined using forward exchange rates supplied by a quotation service.
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 Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
As of December 31, 1998, the Fund had approximate net tax basis capital loss
carryforwards, which may be applied against any net taxable gains, as follows:
Emerging Markets Equity had $1,051 which expires in 2006; Global Equity had $356
which expires in 2006; Small Cap Growth had $923 which expires in 2004; $964
which expires in 2005 and $1,112 which expires in 2006; Mid Cap Value had $8,121
which expires in 2006; Small/Mid Cap CORE had $747 which expires in 2006; Short-
Term Bond had $131 which expires in 2006; Small Cap Value had $3,536 which
expires in 2006; and International Opportunities had $280 which expires in 2006.
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
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.
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;
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 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;
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
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 year ended December
31, 1998. The Investment Adviser expects to voluntarily waive all investment
advisory and other fund expenses during the Trust's fiscal 1999 year with
respect to the Equity Index Portfolio. Such expense waiver is subject to
termination at any time by the Investment Adviser without notice to
shareholders. Upon termination of the voluntary expense waiver with respect to
the Equity Index Portfolio, any future expense reimbursement by the Investment
Adviser is subject to limitations as stated in the Investment Advisory
agreement.
During the year ended December 31, 1997, the Investment Adviser voluntarily
contributed approximately $250 to the Equity Index Portfolio. John Hancock
received no shares of capital stock or other consideration in exchange for the
contribution which increased the Portfolio's net asset value.
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment Associates with respect to the Large Cap Growth, Real Estate Equity,
Growth & Income, Managed, and Short-Term Bond Portfolios; with Independence
International Associates, with respect to the International Equity Index
Portfolio; 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 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 and JHVLICO will reimburse each Portfolio for such excess.
Accordingly, for the year ended December 31, 1998, the reimbursements paid from
John Hancock and JHVLICO were $111 to Emerging Markets Equity, $124
International Equity Index, $126 to Global Equity, $27 to Small Cap Growth, $199
to International Balanced, $15 to Mid Cap Growth, $56 to Bond Index, $107 to
Small/Mid Cap CORE, $17 to Small Cap Value, $145 to International Opportunities,
$543 to Equity Index, $85 to High Yield Bond and $31 to Strategic Bond
Portfolios.
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 year ended December 31, 1998
were as follows:
Sales and
Purchases Maturities
---------- ------------
Large Cap Growth ..................................... $ 578,904 $ 509,356
Sovereign Bond ....................................... 1,954,383 1,852,978
Emerging Markets Equity .............................. 13,905 3,961
International Equity Index ........................... 253,719 256,089
Global Equity ........................................ 19,053 4,513
Small Cap Growth ..................................... 71,334 55,954
International Balanced ............................... 28,065 27,707
Mid Cap Growth ....................................... 107,523 79,473
Large Cap Value ...................................... 60,695 17,067
Money Market ......................................... None None
Mid Cap Value ........................................ 192,240 143,998
Diversified Mid Cap Growth ........................... 309,806 324,840
Bond Index ........................................... 31,748 5,366
Small/Mid Cap CORE ................................... 8,157 2,725
Real Estate Equity ................................... 39,821 44,883
Growth & Income ...................................... 1,679,681 1,519,625
Managed .............................................. 4,790,320 4,772,753
Short-Term Bond ...................................... 137,744 112,489
Small Cap Value ...................................... 80,926 52,639
International Opportunities .......................... 34,681 8,655
Equity Index ......................................... 163,433 69,095
High Yield Bond ...................................... 16,785 1,922
Strategic Bond ....................................... 115,595 81,571
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 December 31, 1998
for federal income tax purposes are as follows:
Net Unrealized
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ ----------------
Large Cap Growth ..... $ 781,646 $ 364,182 $ (15,107) $ 349,075
Sovereign Bond ....... 871,091 25,580 (5,018) 20,562
Emerging Markets
Equity .............. 8,738 461 (1,903) (1,442)
International Equity
Index ............... 164,973 19,444 (11,929) 7,515
Global Equity ........ 15,098 1,427 (1,261) 166
Small Cap Growth ..... 58,040 19,110 (2,276) 16,834
International Balanced 26,506 3,771 (997) 2,774
Mid Cap Growth ....... 70,717 22,217 (562) 21,655
Large Cap Value ...... 111,613 17,452 (5,795) 11,657
Money Market ......... 369,547 None None None
Mid Cap Value ........ 96,819 5,654 (7,320) (1,666)
Diversified Mid Cap
Growth .............. 172,352 35,624 (13,264) 22,360
Bond Index ........... 27,278 591 (133) 458
Small/Mid Cap CORE ... 4,681 757 (493) 264
Real Estate Equity ... 150,644 17,145 (15,882) 1,263
Growth & Income ...... 2,554,773 1,191,608 (74,268) 1,117,340
Managed .............. 2,862,542 647,804 (43,769) 604,035
Short-Term Bond ...... 76,371 211 (546) (335)
Small Cap Value ...... 61,751 7,690 (5,419) 2,271
International
Opportunities ....... 57,901 9,929 (3,588) 6,341
Equity Index ......... 187,550 52,113 (6,310) 45,803
High Yield Bond ...... 15,079 303 (873) (570)
Strategic Bond ....... 69,187 2,648 (56) 2,592
During the year ended December 31, 1998, reclassifications have been made in
each Portfolio's capital accounts to report these balances on a tax basis,
excluding certain temporary differences, as of December 31, 1998. These
permanent reclassifications are primarily attributable to differences in the
treatment of foreign currency gains and losses, net operating losses and return
of capital under federal tax rules versus generally accepted accounting
principles. Net assets were not affected by these reclassifications.
NOTE FORWARD FOREIGN CURRENCY CONTRACTS
As of December 31, 1998 the International Equity Index, Global Equity,
International Balanced, Managed and Strategic Bond Portfolios had open forward
foreign currency contracts which contractually obligate the Portfolio to deliver
or receive currencies at a specified date, as follows:
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
INTERNATIONAL EQUITY INDEX PORTFOLIO
Maturity Net Unrealized
Currency Sold Date Cost Value Appreciation
- ----------------------------------- -------- ------ ------ ----------------
Deutsch Mark ........... $ 9 01/04/99 $ 5 $ 5 $ 0
Spanish Peseta ......... 214 01/04/99 2 2 0
-----
0
-----
Currency Purchased
- -----------------------------------
Deutsch Mark ........... $ 14 01/04/99 $ 8 $ 8 $ 0
Japanese Yen ........... 219,400 03/11/99 1,862 1,959 97
-----
$ 97
=====
GLOBAL EQUITY PORTFOLIO
Maturity Net Unrealized
Currency Sold Date Cost Value Appreciation
- ----------------------------------- -------- ------ ------ ----------------
Deutsch Mark ........... $ 1 01/04/99 $ 1 $ 1 $ 0
-----
Currency Purchased
- -----------------------------------
Deutsch Mark ........... $ 3 01/04/99 $ 2 $ 2 $ 0
-----
$ 0
=====
INTERNATIONAL BALANCED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ----------------------------------- -------- ------ ------ ----------------
Australian Dollar ..... $ 1,020 03/30/99 $ 590 $ 626 $ (36)
Canadian Dollar ........ 800 03/30/99 524 523 1
Deutsch Mark ........... 2,700 03/30/99 1,613 1,627 (14)
Danish Krone ........... 6,200 03/30/99 966 977 (11)
Finnish Markka ......... 700 03/30/99 137 138 (1)
French Franc ........... 3,350 03/30/99 597 602 (5)
Japanese Yen ........... 137,000 03/30/99 1,170 1,226 (56)
Netherlands Guilder .... 775 03/30/99 407 414 (7)
Pound Sterling ......... 1,250 03/30/99 2,083 2,071 12
Spanish Peseta ......... 105,000 03/30/99 743 742 1
Swiss Franc ............ 320 03/30/99 233 235 (2)
-----
(118)
-----
124
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
INTERNATIONAL BALANCED PORTFOLIO - CONTINUED
Net Unrealized
Maturity Appreciation/
Currency Purchased Date Cost Value (Depreciation)
- ----------------------------------- -------- ------ ------ ----------------
Australian Dollar ...... $ 1,520 03/30/99 $ 950 $ 932 $ (18)
Austrian Schilling ..... 2,300 03/30/99 195 197 2
Belgian Franc .......... 10,500 03/30/99 308 305 (3)
Deutsch Mark ........... 1,900 03/30/99 1,172 1,145 (27)
Finnish Markka ......... 700 03/30/99 137 138 1
Italian Lira ........... 800,000 03/30/99 482 486 4
Japanese Yen ........... 579,000 03/30/99 4,465 5,183 718
Netherlands Guilder .... 1,200 03/30/99 647 641 (6)
Portuguese Escudo ...... 28,000 03/30/99 163 165 2
Spanish Peseta ......... 25,000 03/30/99 175 177 2
Swedish Krona .......... 4,000 03/30/99 514 494 (20)
Swiss Franc ............ 620 03/30/99 454 455 1
--------
656
--------
$ 538
========
MID CAP GROWTH
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- --------------------------------- -------- ------ ------ ----------------
Pound Sterling ......... $1,250 04/07/99 $2,105 $2,071 $ 34
Pound Sterling ......... 25 04/08/99 41 41 0
Pound Sterling ......... 225 05/13/99 372 373 (1)
----
$ 33
====
MANAGED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ----------------------------------- -------- ------- ------- --------------
Australian Dollar ... $ 3,296 02/03/99 $ 2,124 $ 2,020 $ 104
Canadian Dollar ..... 13,265 02/03/99 8,591 8,679 (88)
Danish Krone ........ 29,720 02/03/99 4,633 4,674 (41)
Deutsch Mark ........ 79,098 02/03/99 46,948 47,539 (591)
Deutsch Mark ........ 8,928 02/04/99 5,358 5,366 (8)
Deutsch Mark ........ 4,533 02/05/99 2,686 2,725 (39)
French Franc ........ 165,265 02/03/99 29,264 29,608 (344)
Italian Lira. ....... 37,801,352 02/03/99 22,674 22,900 (226)
Japanese Yen ........ 7,094,222 02/03/99 59,472 63,037 (3,565)
Japanese Yen ........ 163,600 02/04/99 1,378 1,454 (76)
Netherlands Guilder . 16,768 02/03/99 8,831 8,940 (109)
Pound Sterling ...... 11,388 02/03/99 18,782 18,899 (117)
Pound Sterling ...... 2,425 02/04/99 4,036 4,025 11
Pound Sterling ...... 6,486 02/05/99 10,688 10,763 (75)
125
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
MANAGED PORTFOLIO - CONTINUED
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- --------------------------------------- -------- ------ ------- --------------
<S> <C> <C> <C> <C> <C>
Swedish Krona.............. $32,292 02/03/99 $4,014 $ 3,980 $34
Swiss Franc ............... 7,282 02/04/99 5,344 5,320 24
Swiss Franc ............... 3,720 02/05/99 2,686 2,718 (32)
-------
(5,138)
-------
Currency Purchased
- ---------------------------------------
Deutsche Mark .............. $ 1,575 02/03/99 $ 933 $ 947 $ 14
Deutsche Mark .............. 11,153 02/04/99 6,708 6,704 (4)
Deutsche Mark .............. 4,496 02/05/99 2,686 2,702 16
Japanese Yen ............... 121,994 02/03/99 1,046 1,084 38
Japanese Yen ............... 470,510 02/04/99 4,008 4,181 173
Pound Sterling ............. 4,022 02/04/99 6,736 6,675 (61)
Pound Sterling ............. 6,425 02/05/99 10,688 10,662 (26)
Swiss Franc ................ 7,272 02/04/99 5,358 5,314 (44)
Swiss Franc ................ 3,664 02/05/99 2,686 2,677 (9)
-------
97
-------
$(5,041)
=======
STRATEGIC BOND PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- --------------------------------------- -------- ------ ------ -------------
Canadian Dollar............. $ 1,700 02/09/99 $1,109 $1,112 $ (3)
Danish Krone................ 6,200 03/01/99 958 976 (18)
Deutsch Mark................ 13,700 02/19/99 8,221 8,241 (20)
French Franc................ 27,300 02/12/99 5,041 4,893 148
Pound Sterling.............. 975 03/17/99 1,639 1,616 23
----
$130
====
</TABLE>
126
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1998
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE F--OTHER MATTERS--(UNAUDITED)
The amendment of (S)270.30d-1 under the Investment Company 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 December 18, 1998 on the following matters:
For Against Abstain
--- ------- ---------
FOR THE GLOBAL EQUITY PORTFOLIO OF THE
TRUST:
1. To approve a new sub-investment
management agreement among the
Series Trust, John Hancock Mutual
Life Insurance Company ("John
Hancock") and Scudder Kemper
Investments, Inc. ("Scudder
Kemper"). The resolution was
adopted by, 99% 0% 1%
127
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- -------------------------------------------------------------------------------
To the Contractowners, Policyholders and Trustees of
John Hancock Variable Series Trust I
We have audited the accompanying statement of assets and liabilities,
including the schedules of investments, of John Hancock Variable Series Trust
I (the Fund) [comprising, respectively, the Large Cap Growth, Sovereign Bond,
Emerging Markets Equity, International Equity Index (formerly, International
Equities), Global Equity, Small Cap Growth, International Balanced, Mid Cap
Growth, Large Cap Value, Money Market, Mid Cap Value, Diversified Mid Cap
Growth (formerly, Special Opportunities), Bond Index, Small/Mid Cap Core, Real
Estate Equity, Growth & Income, Managed, Short-Term Bond (formerly, Short-Term
U.S. Government), Small Cap Value, International Opportunities, Equity Index,
High Yield Bond, and Strategic Bond Portfolios] as of December 31, 1998, and
the related statements of operations for the period then ended, and the
statements of changes in net assets and financial highlights for each of the
periods indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1998, by correspondence
with the custodian and brokers, or other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting John Hancock Variable Series
Trust I at December 31, 1998, the results of their operations for the period
then ended, and the changes in their net assets and financial highlights for
each of the periods indicated, in conformity with generally accepted
accounting principles.
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Boston, Massachusetts
February 10, 1999
128
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OFFICERS AND TRUSTEES INVESTMENT ADVISER
Michele G. Van Leer, Chairman John Hancock Mutual Life
Thomas J. Lee, President and Vice Chairman Insurance Company
Laura L. Mangan, Secretary John Hancock Place
Raymond F. Skiba, Treasurer P.O. Box 111
Sandra M. DaDalt, Assistant Secretary Boston, MA 02117
Patrick F. Smith, Controller
Elizabeth Cook
William H. Dykstra
Joseph Kiebala, Jr.
Frank J. Zeo
SUB-INVESTMENT ADVISERS
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
One New York Plaza International, Inc.
New York, NY 10004 100 East Pratt Street
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, LLP Wellington Management
One Mellon Bank Center, Suite 4135 Company,LLP
Pittsburgh, PA 15258-0001 75 State Street
Boston, MA 02109
Montgomery Asset Management, LLC
101 California Street
San Francisco, CA 94111
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
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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)
Signator Investors Inc., Member NASD, SIPC
Boston, Massachusetts 02117
www.jhancock.com
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