<PAGE>
June 30, 1999
Moving forward.
SEMIANNUAL REPORT
INSURANCE FOR THE UNEXPECTED.
INVESTMENTS FOR THE OPPORTUNITIES.(R)
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VARIABLE SERIES TRUST
[LOGO OF JOHN HANCOCK APPEARS HERE]
<PAGE>
Dear Shareholder,
[PHOTO OF THOMAS J. LEE APPEARS HERE]
Thomas J. Lee,
President and Vice Chairman
With the new millennium on the horizon, John Hancock Mutual Life Insurance
Company and our business partners are prepared for the technological changes
associated with the Year 2000. As a result, we are ideally positioned to
continue providing you with outstanding service in the coming year, because of
new systems and efficiencies that we have implemented over the past several
months. You can be confident that we will be ready to handle the changes for the
Year 2000.
We believe that the next millennium will offer revolutionary opportunities for
you, our shareholders. We know that planning is of paramount importance -- to
you and your family. We also want you to know that we are here to assist you in
achieving all your financial goals through proper planning and the Variable
Series Trust (VST), the investments supporting your variable life and variable
annuity contracts.
At John Hancock, the coming years will be about more than just "change." They
will also be about all that remains the same --all that you have come to rely on
from us. As we move forward, we will continue to help you address your need for
life insurance by providing variable life insurance products that offer
solutions such as income replacement for your family and wealth transfer, and
help you with your estate and/or business planning. At the same time, we will
continue to work with you to meet your changing retirement planning needs using
variable annuity products that accumulate tax-deferred savings and provide a
stream of income for life.
Also, as the primary manager of the Variable Series Trust, we will continue to
work closely with and monitor our subadvisors to ensure that the funds we offer
deliver solid performance while remaining true to their investment objectives.
As we step into the next millennium together, you can feel confident that,
regardless of what changes take place and what remains the same, our primary
focus is to provide you with the best possible insurance and investment products
and services that fit your needs.
We thank you for your continued confidence in John Hancock.
[PHOTO OF MICHELE G. VAN LEER APPEARS HERE]
Michele G. Van Leer, Chairman
Sincerely,
/s/ Michele G. Van Leer /s/ Thomas J. Lee
Michele G. Van Leer Thomas J. Lee
Chairman President and Vice Chairman
<PAGE>
Economic Overview: Mid-Year Review 1999
John Hancock Economic Research
1999 has been characterized so far by strong growth accompanied by rising
apprehension concerning inflation. Continued strong domestic growth, an
unexpected surge in oil prices, improving conditions in Asia, and perceptions
of an over-accommodating Fed have raised the specter of an imminent jump in
inflation. The problem, if it is one, is that it's only a fear that has not
shown up in the data.
What has accounted for this strange course of events? At the core is the
uneasiness that the economy cannot continue to grow at around 4% without
kindling inflation. However, the economy has been doing this for three years
running, and during that time inflation has declined.
This extraordinary record of low inflation and high growth has been achieved
principally because of strong gains in productivity and an intensified
competitive business environment. At the root of these trends is the
accelerating expansion of the information technology revolution throughout the
US economy.
Firms have been able to realize productivity gains unseen in several decades,
just when they were faced with intensified competition and labor scarcity.
Computer and communications technologies have lowered the barriers to entry
into many businesses as well as created many new businesses, all of which has
intensified the competitive environment.
The $64,000 question is whether the economy can keep up this pace of
productivity growth. The answer boils down to a matter of faith, but if the
stock market is any indication, many bets have been placed on a bright future
of the "new" economy.
As in the past few years, consumption and investment have been driving the
economy in 1999. Consumers are spending more than they earn, causing the
savings rate to turn negative, but that should not come as a surprise:
. Equity and real estate valuations have risen steadily and substantially
over the past several years, leaving little apparent need to save.
. The economy continues to create new jobs at a healthy pace and the labor
market remains tight with unemployment at 4.3% of the labor force.
. With wage gains outstripping inflation, consumers' purchasing power
continues to grow.
The other pillar of economic strength, investment spending, remains healthy as
well, with firms speeding productivity enhancements as quickly as possible.
Capacity growth continues to keep pace with utilization rates, leaving few if
any capacity bottlenecks.
On the other hand, residential investment has started to falter as declining
affordability and demographics have taken their toll on the real estate market.
The best could be behind us in this sector.
The trade deficit has soared again this year as the strong domestic economy's
appetite for imports seems insatiable while weak growth overseas has stalled
exports. International trade is expected to lop as much as 2% off growth in the
first half of the year, with the drag diminishing over the rest of the year.
The surge in inflation expectations this year pushed interest rates higher. The
yield curve steepened as longer term interest rates rose steadily, with the 30
year Treasury bond briefly touching 6.25%. The rate fell below 6% toward the
end of June, but remains significantly above the rates prevailing at the
beginning of the year.
In June, the Fed responded to these fears by bumping up its target interest
rate by 25 basis points for the first time in two years, partly as an insurance
policy against the possibility of future inflation and partly in response to
the improving financial market conditions following last fall's financial
market seizure.
Looking forward, the economy faces the same challenges that it has faced all
year:
. Inflation could pick up through a surge in wages, declining
productivity, a falling US dollar overseas, or an even larger oil price
hike, or
. Collapsing equity prices, financial turmoil, or extensive Y2K
disruptions could push the economy into recession, or
. The economy could enjoy continued heady growth with low inflation.
The one certainty is that the Fed is alert to these risks and is prepared to
act. With the economy chugging along at a healthy clip, government finances in
great shape and Chairman Greenspan at the helm of monetary policy, the chance
of something going wrong seems remote. But, something eventually will, and one
can only hope that the economy will be resilient enough and policy astute
enough to deflect the blow.
<PAGE>
Inception: March 29, 1986
Money Market Fund
John Hancock Mutual Life Insurance Co. Peter Mitsopoulos
The markets at the beginning of the year were ready to exploit the benefits
of the Fed's three rapid-fire rate reductions last year. The Fed's actions
averted what appeared to be a looming credit disaster, but also gave the
markets that rate reduction felt long overdue. Economic data, though sometimes
conflicting, gave investors the feeling that it could not get any better than
this. Then, the change of 0.7% in the April CPI took the wind out of
everyone's sails. The Fed changed its bias to monetary constraint, rates rose
in anticipation and it wasn't just a question of when the Fed would raise
rates, but how many times they would this year. The Fed delivered it widely-
expected 25 basis point increase at its June 29-30 meeting, but also changed
its bias back to neutral.
We began the year needing to extend the maturity on the Fund after year-end
and proceeded to take on a strategy of very short maturities and longer
maturities (maximum 13 months). This, we felt, would enabled us to capitalize
on short-term interest rate swings or even a minor interest rate increase,
while still obtaining attractive longer-term investments for the portfolio.
While the rate decreases during last year were significant, we felt the risk
of an increase this year was not significant enough to keep the fund short. As
a result, the Fund's maturity increased from 48 days at year-end to 73 days by
June 30. With only one increase in rates coming on the last day of this
period, we feel our strategy has been appropriate. Post June 30 economic
conditions point to a continued low risk of inflation for the balance of the
year.
The Fund continues to be invested predominantly in traditional commercial
paper representing about two-thirds of the fund, with bank certificates of
deposit about 19% and adjustable rate securities about 11%. We continue to
look for additional positions in both of those sectors. The Fund is
diversified among many industry sectors and companies.
[CHART OF HISTORICAL FUND RETURN APPEARS HERE]
DATE Money Market Fund
---- -----------------
30-Jun-89 $ 10,000
31-Jul-89 $ 10,077
31-Aug-89 $ 10,150
29-Sep-89 $ 10,219
31-Oct-89 $ 10,296
30-Nov-89 $ 10,367
29-Dec-89 $ 10,441
31-Jan-90 $ 10,513
28-Feb-90 $ 10,578
30-Mar-90 $ 10,648
30-Apr-90 $ 10,721
31-May-90 $ 10,795
29-Jun-90 $ 10,863
31-Jul-90 $ 10,939
31-Aug-90 $ 11,011
28-Sep-90 $ 11,077
31-Oct-90 $ 11,155
30-Nov-90 $ 11,227
31-Dec-90 $ 11,302
31-Jan-91 $ 11,374
28-Feb-91 $ 11,433
28-Mar-91 $ 11,489
30-Apr-91 $ 11,553
31-May-91 $ 11,609
28-Jun-91 $ 11,659
31-Jul-91 $ 11,719
30-Aug-91 $ 11,774
30-Sep-91 $ 11,828
31-Oct-91 $ 11,879
27-Nov-91 $ 11,922
31-Dec-91 $ 11,975
31-Jan-92 $ 12,018
28-Feb-92 $ 12,052
31-Mar-92 $ 12,093
30-Apr-92 $ 12,132
29-May-92 $ 12,169
30-Jun-92 $ 12,210
31-Jul-92 $ 12,249
31-Aug-92 $ 12,286
30-Sep-92 $ 12,320
30-Oct-92 $ 12,342
30-Nov-92 $ 12,375
31-Dec-92 $ 12,411
29-Jan-93 $ 12,443
26-Feb-93 $ 12,472
31-Mar-93 $ 12,506
30-Apr-93 $ 12,537
28-May-93 $ 12,565
30-Jun-93 $ 12,599
30-Jul-93 $ 12,630
31-Aug-93 $ 12,663
30-Sep-93 $ 12,694
29-Oct-93 $ 12,724
30-Nov-93 $ 12,757
31-Dec-93 $ 12,790
31-Jan-94 $ 12,823
28-Feb-94 $ 12,853
31-Mar-94 $ 12,887
29-Apr-94 $ 12,920
31-May-94 $ 12,960
30-Jun-94 $ 13,002
29-Jul-94 $ 13,045
31-Aug-94 $ 13,097
30-Sep-94 $ 13,146
31-Oct-94 $ 13,192
30-Nov-94 $ 13,245
30-Dec-94 $ 13,306
31-Jan-95 $ 13,369
28-Feb-95 $ 13,427
31-Mar-95 $ 13,494
28-Apr-95 $ 13,553
31-May-95 $ 13,623
30-Jun-95 $ 13,687
31-Jul-95 $ 13,752
31-Aug-95 $ 13,817
29-Sep-95 $ 13,877
31-Oct-95 $ 13,944
30-Nov-95 $ 14,008
29-Dec-95 $ 14,074
31-Jan-96 $ 14,140
29-Feb-96 $ 14,198
29-Mar-96 $ 14,255
30-Apr-96 $ 14,318
31-May-96 $ 14,380
28-Jun-96 $ 14,436
31-Jul-96 $ 14,504
30-Aug-96 $ 14,566
30-Sep-96 $ 14,630
31-Oct-96 $ 14,695
29-Nov-96 $ 14,750
31-Dec-96 $ 14,823
31-Jan-97 $ 14,889
28-Feb-97 $ 14,948
31-Mar-97 $ 15,013
30-Apr-97 $ 15,078
30-May-97 $ 15,145
30-Jun-97 $ 15,214
31-Jul-97 $ 15,283
29-Aug-97 $ 15,348
30-Sep-97 $ 15,420
31-Oct-97 $ 15,490
28-Nov-97 $ 15,554
31-Dec-97 $ 15,631
30-Jan-98 $ 15,703
27-Feb-98 $ 15,765
31-Mar-98 $ 15,837
30-Apr-98 $ 15,906
29-May-98 $ 15,979
30-Jun-98 $ 16,049
31-Jul-98 $ 16,122
31-Aug-98 $ 16,195
30-Sep-98 $ 16,266
30-Oct-98 $ 16,338
30-Nov-98 $ 16,407
31-Dec-98 $ 16,477
29-Jan-99 $ 16,546
26-Feb-99 $ 16,606
31-Mar-99 $ 16,672
30-Apr-99 $ 16,736
28-May-99 $ 16,802
30-Jun-99 $ 16,866
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
National Bank of Canada 5.6% 1.1%
Fleet National Bank 5.4% N/A
Monte Rosa Capital Corp. 5.0% 3.5%
Falcon Asset Securitization Corp. 5.0% 3.9%
PNC Bank NA 4.2% 2.7%
BMW U.S. Capital Corp. 4.2% N/A
Ciesco L.P. 4.2% 3.1%
Corporate Receivables Corp. 3.8% 4.7%
Sigma Finance, Inc. 3.6% 3.7%
Nestle Capital Corp. 3.4% N/A
Average Annual Total Returns*
- -----------------------------
Money Market MorningStar
Fund Peer Group+
---- -----------
YTD** 2.36% 2.87%
1 Year 5.09 4.94
3 Years 5.32 5.17
5 Years 5.34 5.21
10 Years 5.37 5.18
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Financial 82.0% Technology 1.1%
Consumer Cyclical 8.5% N/A 0.0%
Capital Equipment 4.2% N/A 0.0%
Consumer Staple 2.8% N/A 0.0%
Basic Material 1.4% N/A 0.0%
The Money Market Fund is neither insured nor guaranteed by the U.S. Government
and there is no guarantee the fund will be able to maintain a stable net asset
value of $10.00/share.
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. The performance of the fund on this page is reported net of
Trust level charges (i.e. investment management fees and operating expenses). It
does not reflect expense and charges of the applicable separate accounts and
variable products, all of which vary to a considerable extent and are described
in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
**Year-to-date total returns are not annualized.
2
<PAGE>
Inception: May 1, 1994
Short-Term Bond FundIndependence Investment Associates, Inc. Jeff Saef
During the second quarter, movements in the fixed income markets were
dominated by the increasing probability of a Federal Reserve Board tightening,
accompanied by a shift in focus at the Federal Reserve Board from inflation
vigilance to emphasis on economic growth. This shift, motivated by concerns
over sustainable growth in the context of tightening labor markets and
improving financial markets, fostered an expectation of rising interest rates.
The bond market responded with a 35 to 55 basis point increase in interest
rates across the U.S. Treasury yield curve. In the face of this meaningful
change in market conditions, liquidity languished and spread sectors widened.
Record levels of new corporate bond issuance further pressured the market,
resulting in wider spreads in the corporate bond market.
For the quarter, short maturity corporate bonds performed in line with
similar maturity U.S. Treasury securities. After tightening the spread in
April and early May, corporate bond spreads widened in response to both higher
interest rates, wider swap spreads, and large amounts of new corporate bond
issuance. Your Fund is overweight in corporate bonds and we estimate that the
additional yield advantage from this overweight during the quarter was 40
basis points of annualized yield which translated into 10 (40 bp divided by 4)
basis points of actual excess return during the quarter. However, the small
amounts of spread widening experienced in the later portion of the quarter
helped offset the yield advantage in the Fund, resulting in a return
approximately equal to the benchmark for the quarter.
[CHART APPEARS HERE]
DATE Short-Term Bond Benchmark Short-Term Bond Fund
---- ------------------------- --------------------
April-94 $ 10,000 $ 10,000
May 1994 $ 10,013 $ 9,999
Jun 1994 $ 10,033 $ 10,010
Jul 1994 $ 10,138 $ 10,109
Aug 1994 $ 10,172 $ 10,130
Sep 1994 $ 10,117 $ 10,075
Oct 1994 $ 10,129 $ 10,078
Nov 1994 $ 10,074 $ 10,032
Dec 1994 $ 10,102 $ 10,033
Jan 1995 $ 10,258 $ 10,172
Feb 1995 $ 10,432 $ 10,324
Mar 1995 $ 10,489 $ 10,367
Apr 1995 $ 10,597 $ 10,462
May 1995 $ 10,844 $ 10,694
Jun 1995 $ 10,908 $ 10,769
Jul 1995 $ 10,935 $ 10,780
Aug 1995 $ 11,010 $ 10,844
Sep 1995 $ 11,071 $ 10,892
Oct 1995 $ 11,179 $ 10,996
Nov 1995 $ 11,299 $ 11,098
Dec 1995 $ 11,398 $ 11,187
Jan 1996 $ 11,501 $ 11,273
Feb 1996 $ 11,418 $ 11,183
Mar 1996 $ 11,383 $ 11,143
Apr 1996 $ 11,371 $ 11,124
May 1996 $ 11,378 $ 11,123
Jun 1996 $ 11,474 $ 11,211
Jul 1996 $ 11,514 $ 11,238
Aug 1996 $ 11,542 $ 11,260
Sep 1996 $ 11,666 $ 11,392
Oct 1996 $ 11,824 $ 11,527
Nov 1996 $ 11,937 $ 11,607
Dec 1996 $ 11,907 $ 11,591
Jan 1997 $ 11,961 $ 11,642
Feb 1997 $ 11,980 $ 11,661
Mar 1997 $ 11,951 $ 11,631
Apr 1997 $ 12,065 $ 11,727
May 1997 $ 12,152 $ 11,805
Jun 1997 $ 12,245 $ 11,894
Jul 1997 $ 12,422 $ 12,058
Aug 1997 $ 12,406 $ 12,033
Sep 1997 $ 12,520 $ 12,138
Oct 1997 $ 12,634 $ 12,241
Nov 1997 $ 12,660 $ 12,247
Dec 1997 $ 12,755 $ 12,334
Jan 1998 $ 12,903 $ 12,464
Feb 1998 $ 12,901 $ 12,460
Mar 1998 $ 12,950 $ 12,503
Apr 1998 $ 13,010 $ 12,559
May 1998 $ 13,086 $ 12,622
Jun 1998 $ 13,152 $ 12,679
Jul 1998 $ 13,213 $ 12,737
Aug 1998 $ 13,336 $ 12,872
Sep 1998 $ 13,520 $ 13,007
Oct 1998 $ 13,551 $ 12,999
Nov 1998 $ 13,587 $ 13,019
Dec 1998 $ 13,641 $ 13,051
Jan 1999 $ 13,717 $ 13,081
Feb 1999 $ 13,669 $ 13,035
Mar 1999 $ 13,778 $ 13,105
Apr 1999 $ 13,836 $ 13,154
May 1999 $ 13,819 $ 13,122
Jun 1999 $ 13,862 $ 13,165
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Federal National Mortgage Assoc 4.8% N/A
WMX Technologies, Inc. 4.8% 3.9%
MCI Worldcom, Inc. 4.4% 4.2%
American General Finance Corp. 4.1% 3.8%
Franchise Finance Corp. of America 3.6% 3.3%
Merrill Lynch & Co., Inc. 3.5% 3.3%
Tyco International Group SA 3.3% 3.0%
Banponce Corp. 3.1% 2.9%
Norfolk Southern Corp. 3.0% N/A
Tenet Healthcare Corp. 3.0% 2.9%
Average Annual Total Returns*
- -----------------------------
Short-Term Short-Term MorningStar
Bond Fund Bond Benchmark(1) Peer Group+
--------- ----------------- -----------
YTD** .87% 1.62% -.08%
1 Year 3.83 5.40 3.96
3 Years 5.50 6.51 5.41
5 Years 5.63 6.68 N/A
Since Inception 5.47 6.52 N/A
Fund Composition (as of June 30, 1999)
- --------------------------------------
Credit Quality Duration
- -------------- --------
Government Bonds 13% Less than 1 Year 16%
AAA 4% 1-3 Years 68.3%
AA 3% 3-5 Years 7.2%
A 25% 5-10 Years 5.9%
BBB 47% Greater than 10 Years 2.6%
BB 8%
Below B 0%
NR/NA 0%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
(1)Short-Term Bond Index: 65% Lehman Brothers 1-3 year Corporate Index. 35%
Lehman Brothers 1-3 year Government Index.
** Year-to-date total returns are not annualized.
3
<PAGE>
Inception: May 1, 1998
Bond Index Fund
Mellon Bond Associates, LLP Gregory Curran
The Fund 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. Government and investment-grade
corporations. Performance net of fees for the Fund was 0.33% for June, -1.27%
for the past quarter and 3.85% from inception. Corresponding returns for the
index were 0.31%, -1.10% and 4.14%. The Fund 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 4,500 issues in the Index including price sensitivity,
industry, and quality exposures. An indexed Fund typically eliminates many
risks associated with active management and has lower fees and expenses.
During the second quarter, the influence of international factors on the bond
market subsided. Investors generally perceived international financial crises
to be defused. Consequently, domestic forces drove the market. Treasury
performance was hurt by a number of factors best described as a battle between
market bears and bulls. The bears site significant new issuance in the
corporate and U.S. Agency markets, strength in the stock market and strong
economic growth. The bulls site a flight to quality stemming from continued
economic unrest in Latin and South America and low inflation. Mostly, the
bears have had the edge leaving a negative tone to the market. Even so,
investors have been quick to buy Treasury issues as yields return to
attractive levels. Each major economic release was viewed for its affect on
Federal Reserve policy. Market participant expectations were realized when the
Fed raised the Federal Funds rate by 0.25% to 5%. Expectations were exceeded
when the Federal Reserve Open Market Committee changed its interest rate bias
to neutral from one of tightening. Market opinion is split regarding the
prospects of more rate hikes by the Fed.
[CHART APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Date Bond Index Fund Lehman Brothers Gov't./Corp. Bond Index
---- --------------- ---------------------------------------
Apr 1998 $10,000 $10,000
May 1998 $10,102 $10,000
Jun 1998 $10,211 $10,102
Jul 1998 $10,220 $10,211
Aug 1998 $10,461 $10,220
Sep 1998 $10,757 $10,461
Oct 1998 $10,689 $10,757
Nov 1998 $10,703 $10,689
Dec 1998 $10,720 $10,703
Jan 1999 $10,795 $10,720
Feb 1999 $10,521 $10,795
Mar 1999 $10,584 $10,521
Apr 1999 $10,609 $10,584
May 1999 $10,485 $10,609
Jun 1999 $10,450 $10,485
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Bond Index L/B Govt./Corp.
Fund Bond Index
YTD** -2.52% -2.27%
1 Year 2.34 2.69
Since Inception (5/1/98) 3.85 4.14
Top Ten Holdings (as of June 30, 1999 )
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 52.5% 54.3%
Federal Home Loan Mortgage Corp. 6.8% 6.9%
Federal National Mortgage Assoc 5.5% 3.8%
General Motors Acceptance Corp. 1.2% 1.4%
KFW International Finance 1.0% 1.2%
ICI Wilmington 1.0% 1.2%
Morgan Stanley, Dean Witter, Discover & 1.0% 0.8%
Rite Aid Corp. 1.0% 1.1%
Federal Home Loan Bank 1.0% 1.1%
First Union Corp. 0.8% 0.9%
Fund Composition (as of June 30, 1999)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
Government Bonds 65.2% (LESS THAN) 1 Year .98%
AAA 4.13% 1-3 Years 25.62%
AA 6.23% 3-5 Years 19.92%
A 13.37% 5-10 Years 25.45%
BBB 11.07% (GREATER THAN) 10 Years 28.03%
Below BBB 0.0%
NR/NA 0.0%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Small-company investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
** Year-to-date total returns are not annualized.
4
<PAGE>
Inception: May 1, 1996
Global Bond Fund (Formerly Strategic Bond Fund)
J.P. Morgan Investment Management, Inc. David Gibbon
During the first half of the year, acceleration of global economic growth
continued. As such, global bond returns were disappointing as market
participants continued to question the sustainability of ultra-low inflation
in this environment. The Global economy, led by Asia, is gaining strength
after suffering from the crisis in 1998. In the last week of June, the Federal
Reserve responded to rising global inflationary expectations by raising the
federal funds rate 0.25%, hinting that they would not aggressively tighten
monetary policy further.
For the six-month period ending June 30, 1999, the Fund returned 2.02% (net
of fees). In addition, the Fund's one-year return was 2.85% (net of fees). In
April, the Fund was re-balanced to reflect the change in its benchmark. This
included selling a majority of the mortgage backed-securities, U.S. corporate
bonds, all high-yield and emerging markets debt and the purchase of high-grade
government and corporate bonds denominated in foreign currencies. More
recently, our decision to shorten the Fund's duration position positively
impacted the Fund's performance as interest rates rose globally.
We continue to believe that the recovery in the global goods sector will be
negative for bond markets. It is our view that the U.S. policy response is
unlikely to be either swift enough or firm enough to curb rising global
inflation expectations. With policy likely to remain on hold in Europe and
Japan, the outlook for global inflation rests firmly in the Fed's hands.
Within the non-government market, our focus over the next few months will be
on the reaction of companies and markets to changes in monetary policy. We
will continue to seek attractive opportunities in the non-government market to
enhance the yield of the Fund.
[CHART OF HISTORICAL FUND RETURN APPEARS HERE]
Date Global Bond Composite Index(A) Global Bond Fund
---- ------------------------------ ----------------
April-96 $ 10,000 $ 10,000
May 1996 $ 10,002 $ 9,983
Jun 1996 $ 10,123 $ 10,068
Jul 1996 $ 10,162 $ 10,103
Aug 1996 $ 10,183 $ 10,112
Sep 1996 $ 10,370 $ 10,297
Oct 1996 $ 10,586 $ 10,490
Nov 1996 $ 10,775 $ 10,674
Dec 1996 $ 10,703 $ 10,671
Jan 1997 $ 10,762 $ 10,723
Feb 1997 $ 10,799 $ 10,755
Mar 1997 $ 10,695 $ 10,634
Apr 1997 $ 10,844 $ 10,761
May 1997 $ 10,936 $ 10,871
Jun 1997 $ 11,080 $ 11,021
Jul 1997 $ 11,348 $ 11,262
Aug 1997 $ 11,279 $ 11,194
Sep 1997 $ 11,454 $ 11,396
Oct 1997 $ 11,597 $ 11,459
Nov 1997 $ 11,658 $ 11,518
Dec 1997 $ 11,784 $ 11,637
Jan 1998 $ 11,937 $ 11,774
Feb 1998 $ 11,956 $ 11,795
Mar 1998 $ 12,013 $ 11,844
Apr 1998 $ 12,076 $ 11,899
May 1998 $ 12,203 $ 12,012
Jun 1998 $ 12,294 $ 12,101
Jul 1998 $ 12,342 $ 12,133
Aug 1998 $ 12,554 $ 12,315
Sep 1998 $ 12,848 $ 12,624
Oct 1998 $ 12,792 $ 12,538
Nov 1998 $ 12,882 $ 12,639
Dec 1998 $ 12,907 $ 12,702
Jan 1999 $ 13,016 $ 12,811
Feb 1999 $ 12,823 $ 12,564
Mar 1999 $ 12,914 $ 12,667
Apr 1999 $ 12,986 $ 12,704
May 1999 $ 12,893 $ 12,577
Jun 1999 $ 12,747 $ 12,446
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
U.S. Treasury 14.1% 23.1%
Bundesobligation 9.9% N/A
Government National Mortgage Assoc 8.0% 10.1%
U.K. Treasury 7.2% 2.5%
Government of France 6.9% 8.1%
Bundesrepublic Deutschland 5.4% 2.4%
Repsol International Finance 5.1% N/A
Government of Netherlands 5.1% N/A
Federal Republic of Germany 4.8% 9.8%
Federal National Mortgage Assoc 4.8% 11.1%
Average Annual Total Returns*
- -----------------------------
Global Bond Global Bond MorningStar
Fund Composite Index (A) Peer Group+
---- ------------------- -----------
YTD** -2.02% -1.12% -1.05%
1 Year 2.85 3.81 1.10
3 Years 7.32 8.03 6.02
Since Inception 7.16 8.01 N/A
Fund Composition (as of June 30, 1999)
- --------------------------------------
+Credit Quality Duration
- --------------- --------
Government Bonds 27.01% Less than 1 Year 14.81%
AAA 53.45% 1-3 Years 16.67%
AA 5.96% 3-5 Years 18.25%
A 9.12% 5-10 Years 27.93%
BBB 4.46% Greater than 10 Years 22.34%
Below BBB 0%
*Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. There are special risks associated with international investing
including currency fluctuations, political and economic instability, foreign
taxation and different accounting standards, as outlined in the current
prospectus. The performance of the fund on this page is reported net of Trust
level changes (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
(A)Bond Composite Index: 75% Lehman Brothers Aggregate Bond and 25% J.P. Morgan
Non-US Government Bond Index, Hedged, from May 1996 to April 1999 and the J.P.
Morgan Global Bond Index (Hedged) thereafter.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
5
<PAGE>
Inception: March 29, 1986
Sovereign Bond FundJohn Hancock Advisers, Inc. James Ho
Continued economic growth drove US bond prices lower through much of the
quarter, as the US economy remained strong and the revised estimate of first-
quarter growth failed to ease investor concerns that the economy would slow
enough to restrain inflation. In response, at quarter-end, the Fed raised the
Federal Funds rate 25 basis points to 5%. At the Federal Reserve Open Market
Committee meeting, the Fed also announced that it changed its tightening bias,
to a neutral bias.
During the second quarter, investment grade corporate bonds underperformed
Treasuries due to slower trading volumes and a healthy new issue calendar
supply ($84.3 billion). However, during the first half of 1999, most spread
products outperformed Treasuries, with Emerging Market and high yield bonds
performing best (10.22% and 2.31%, respectively).
During the quarter, the Fund lost (1.02%), as performance was ahead of the
Lehman Government/Corporate Index at (1.10%). Year-to-date the Fund's return
of (1.46%) outperformed the Index return of (2.27%) by 81 basis points. Given
that Treasuries outperformed most spread products during the quarter, our
underweight position in this sector relative to the benchmark (24.5% versus
57.1%) detracted from performance results. Correspondingly, as US investment
grade corporate bonds underperformed Treasuries, our heavier exposure to
corporate bonds (49.3% versus 27.5%) also detracted from performance.
If the US economy does not start to exhibit signs of a slowdown, we may see
the Fed tighten again at the August 24 Federal Reserve Open Market Committee
meeting. However, we remain optimistic regarding the near-term outlook for the
bond market, and spread sectors in particular, as investors' fears have been
temporarily alleviated by the Fed's recent actions. We will continue to
purchase the upper tier quality of the high yield sector. While the emerging
markets reported exceptional performance year-to-date, limited liquidity and
continued volatility keep us from committing additional funds to this market
sector.
[CHART APPEARS HERE]
Date Sovereign Bond Fund Lehman Brothers Govt./Corp. Bond Index
---- ------------------- --------------------------------------
30-Jun-89 $ 10,000 $ 10,000
31-Jul-89 $ 10,182 $ 10,208
31-Aug-89 $ 10,067 $ 10,050
30-Sep-89 $ 10,114 $ 10,094
31-Oct-89 $ 10,336 $ 10,349
30-Nov-89 $ 10,425 $ 10,443
31-Dec-89 $ 10,404 $ 10,458
31-Jan-90 $ 10,275 $ 10,315
28-Feb-90 $ 10,302 $ 10,338
31-Mar-90 $ 10,313 $ 10,339
30-Apr-90 $ 10,256 $ 10,244
31-May-90 $ 10,474 $ 10,541
30-Jun-90 $ 10,616 $ 10,711
31-Jul-90 $ 10,725 $ 10,844
31-Aug-90 $ 10,626 $ 10,687
30-Sep-90 $ 10,694 $ 10,776
31-Oct-90 $ 10,827 $ 10,919
30-Nov-90 $ 11,014 $ 11,157
31-Dec-90 $ 11,175 $ 11,325
31-Jan-91 $ 11,265 $ 11,452
28-Feb-91 $ 11,403 $ 11,551
31-Mar-91 $ 11,508 $ 11,630
30-Apr-91 $ 11,676 $ 11,764
31-May-91 $ 11,763 $ 11,820
30-Jun-91 $ 11,772 $ 11,807
31-Jul-91 $ 11,899 $ 11,955
31-Aug-91 $ 12,168 $ 12,230
30-Sep-91 $ 12,415 $ 12,486
31-Oct-91 $ 12,537 $ 12,597
30-Nov-91 $ 12,642 $ 12,723
31-Dec-91 $ 13,036 $ 13,152
31-Jan-92 $ 12,910 $ 12,957
29-Feb-92 $ 12,943 $ 13,026
31-Mar-92 $ 12,911 $ 12,954
30-Apr-92 $ 12,994 $ 13,032
31-May-92 $ 13,211 $ 13,285
30-Jun-92 $ 13,383 $ 13,480
31-Jul-92 $ 13,706 $ 13,825
31-Aug-92 $ 13,855 $ 13,948
30-Sep-92 $ 14,041 $ 14,138
31-Oct-92 $ 13,870 $ 13,921
30-Nov-92 $ 13,827 $ 13,909
31-Dec-92 $ 14,034 $ 14,148
31-Jan-93 $ 14,285 $ 14,457
28-Feb-93 $ 14,582 $ 14,757
31-Mar-93 $ 14,663 $ 14,807
30-Apr-93 $ 14,754 $ 14,921
31-May-93 $ 14,747 $ 14,914
30-Jun-93 $ 15,049 $ 15,253
31-Jul-93 $ 15,176 $ 15,350
31-Aug-93 $ 15,497 $ 15,703
30-Sep-93 $ 15,574 $ 15,758
31-Oct-93 $ 15,590 $ 15,823
30-Nov-93 $ 15,473 $ 15,644
31-Dec-93 $ 15,545 $ 15,713
31-Jan-94 $ 15,772 $ 15,949
28-Feb-94 $ 15,483 $ 15,601
31-Mar-94 $ 15,155 $ 15,219
30-Apr-94 $ 15,018 $ 15,092
31-May-94 $ 14,993 $ 15,065
30-Jun-94 $ 14,978 $ 15,030
31-Jul-94 $ 15,221 $ 15,331
31-Aug-94 $ 15,258 $ 15,337
30-Sep-94 $ 15,080 $ 15,106
31-Oct-94 $ 15,055 $ 15,089
30-Nov-94 $ 15,028 $ 15,062
31-Dec-94 $ 15,146 $ 15,161
31-Jan-95 $ 15,435 $ 15,452
28-Feb-95 $ 15,804 $ 15,811
31-Mar-95 $ 15,927 $ 15,917
30-Apr-95 $ 16,158 $ 16,138
31-May-95 $ 16,852 $ 16,814
30-Jun-95 $ 16,998 $ 16,949
31-Jul-95 $ 16,924 $ 16,883
31-Aug-95 $ 17,120 $ 17,099
30-Sep-95 $ 17,292 $ 17,273
31-Oct-95 $ 17,573 $ 17,527
30-Nov-95 $ 17,835 $ 17,816
31-Dec-95 $ 18,107 $ 18,078
31-Jan-96 $ 18,214 $ 18,190
29-Feb-96 $ 17,864 $ 17,805
31-Mar-96 $ 17,755 $ 17,655
30-Apr-96 $ 17,665 $ 17,533
31-May-96 $ 17,660 $ 17,503
30-Jun-96 $ 17,840 $ 17,738
31-Jul-96 $ 17,897 $ 17,779
31-Aug-96 $ 17,910 $ 17,736
30-Sep-96 $ 18,234 $ 18,052
31-Oct-96 $ 18,621 $ 18,472
30-Nov-96 $ 18,914 $ 18,812
31-Dec-96 $ 18,850 $ 18,603
31-Jan-97 $ 18,920 $ 18,626
28-Feb-97 $ 19,009 $ 18,665
31-Mar-97 $ 18,808 $ 18,443
30-Apr-97 $ 19,065 $ 18,712
31-May-97 $ 19,279 $ 18,886
30-Jun-97 $ 19,532 $ 19,113
31-Jul-97 $ 20,118 $ 19,698
31-Aug-97 $ 19,921 $ 19,477
30-Sep-97 $ 20,243 $ 19,783
31-Oct-97 $ 20,418 $ 20,099
30-Nov-97 $ 20,531 $ 20,206
31-Dec-97 $ 20,755 $ 20,418
31-Jan-98 $ 21,040 $ 20,706
28-Feb-98 $ 21,022 $ 20,664
31-Mar-98 $ 21,141 $ 20,728
30-Apr-98 $ 21,244 $ 20,832
31-May-98 $ 21,433 $ 21,055
30-Jun-98 $ 21,639 $ 21,270
31-Jul-98 $ 21,679 $ 21,287
31-Aug-98 $ 21,892 $ 21,702
30-Sep-98 $ 22,394 $ 22,323
31-Oct-98 $ 22,184 $ 22,164
30-Nov-98 $ 22,398 $ 22,297
31-Dec-98 $ 22,464 $ 22,351
31-Jan-99 $ 22,670 $ 22,509
28-Feb-99 $ 22,206 $ 21,974
31-Mar-99 $ 22,364 $ 22,083
30-Apr-99 $ 22,434 $ 22,139
31-May-99 $ 22,192 $ 21,911
30-Jun-99 $ 22,136 $ 21,843
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
U.S. Treasury 26.5% 21.8%
Government National Mortgage Assoc 6.0% 6.3%
Federal National Mortgage Assoc. 2.4% 3.5%
UCFC Home Equity Loan 1.8% 1.9%
Texaco Capital, Inc. 1.4% 1.4%
GMAC Commercial Mortgage Securities, Inc. 1.3% 1.3%
Federal Home Loan Mortgage Corp. 1.2% 1.9%
Hydro-Quebec 1.0% 1.1%
New Century Energies, Inc. 1.0% 1.0%
Texas New Mexico Power Co. 1.0% 1.0%
Average Annual Total Returns*
- -----------------------------
Sovereign Bond Lehman Brothers Govt./ MorningStar
Fund Corp. Bond Index Peer Group+
---- ---------------- -----------
YTD** -1.46% -2.27% -.66%
1 Year 2.30 2.69 1.62
3 Years 7.46 7.19 6.69
5 Years 8.13 7.76 7.46
10 Years 8.27 8.13 7.87
Fund Composition (as of June 30, 1999)
- --------------------------------------
Credit Quality Duration
- -------------- --------
Government Bonds 33.83% Less than 1 Year 10.47%
AAA 15.18% 1-3 Years 9.74%
AA 8.60% 3-5 Years 7.31%
A 13.09% 5-10 Years 27.74%
BBB 13.89% Greater than 10 43.74%
BB 7.77%
B 6.01%
Below B .62%
NR/NA 1.01%
* Total returns are for the period ended June 30, 1999, returns represent past
performance, assume reinvestment of all distributions, and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although
gathered from reliable sources, data completeness and accuracy cannot be
guaranteed.
** Year-to-date total returns are not annualized.
6
<PAGE>
Inception: May 1, 1998
High Yield Bond Fund
Wellington Management Company, LLP Crawford/Smith/McEvoy
For the second quarter, the Fund had a return of (-0.72%) compared to a 0.3%
return of the Lehman High Yield Bond Index. Since inception, the return on the
Fund has been (-0.09%) compared to the 0.28% return of the Lehman HY Index.
In the second quarter of 1999, the return of the high yield market
outstripped those of the investment-grade market, as represented by the Lehman
Brothers Aggregate Index. This time, however, the outperformance was due not
to a rally in high yield, but because of a lack of downward movement along
with Treasuries. High yield spreads tightened, but Treasury yields rose each
of the last three months.
The Fund's average quality rating remained at B2 compared to B1 for the
Lehman HY Index. For the third consecutive quarter, the higher quality "BB"
sector underperformed the "B" sector because of the tightening of the whole
high yield market and a higher correlation to increasing US Treasury rates.
Emerging market bonds continued to bounce back in the second quarter as
default and devaluation fears eased and worldwide economies showed signs of
improvement. At June 30th, the Fund's emerging market exposure was just over
5% of total assets, consisting solely of Mexican and Argentine Corporate
bonds.
We continue to favor companies which derive most of their revenues from
within the United States and sell a consumable product versus a capital good.
Also, given the longevity of the current U.S. economic cycle, we continue to
favor companies with an underlying secular growth trend as opposed to mature,
cyclical companies. Based on these beliefs, telecommunications continues to be
our largest industry exposure in the Fund.
[CHART APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Date High-Yield Bond Fund Lehman Brothers High-Yield Bond Index
---- -------------------- -------------------------------------
Apr-98 $10,000 $10,000
5/31/98 $ 9,987 $10,035
6/30/98 $10,028 $10,071
7/31/98 $10,075 $10,128
8/31/98 $ 9,309 $ 9,569
9/30/98 $ 9,280 $ 9,613
10/31/98 $ 9,120 $ 9,415
11/30/98 $ 9,802 $ 9,806
12/31/98 $ 9,702 $ 9,817
1/31/99 $ 9,819 $ 9,963
2/28/99 $ 9,884 $ 9,904
3/31/99 $10,062 $ 9,999
4/30/99 $10,214 $10,192
5/31/99 $ 9,992 $10,054
6/30/99 $ 9,989 $10,033
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Nextel Communications 2.3% 2.3%
Lin Holdings Corp. 1.9% 2.0%
Intermedia Communications, Inc. 1.8% 2.2%
Lyondell Chemical Co. 1.8% 0.7%
Echostar DBS Corp. 1.8% 1.0%
P & L Coal Holdings Corp. 1.8% 2.1%
PSINet, Inc. 1.7% 2.1%
Allbritton Communications Co. 1.6% 1.9%
Concentric Network Corp. 1.5% 1.9%
GCI, Inc. 1.5% 1.7%
Average Annual Total Returns*
- --------------------------------------------------------------------------------
High-Yield L/B Hig-Yield MorningStar
Bond Fund Bond Index Peer Group+
YTD** 2.96% 2.20% 4.88%
1 Year -0.38% -.38 -1.06
Since Inception (5/1/98) -0.09% .28 N/A
Fund Composition (as of June 30, 1999)
- --------------------------------------------------------------------------------
Credit Quality Duration
--------
Government Bonds 0% (LESS THAN) 1 Year 1.20%
AAA 1.1% 1-3 Years 1.40%
AA 0% 3-5 Years 9.80%
A 0% 5-10 Years 81.20%
BBB 0% (GREATER THAN) 10 Years 6.6%
BB 13.6%
B 72.5%
Below B 8.6%
NR/NA 4.2%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Small-company investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
7
<PAGE>
Inception: March 29, 1986
Managed Fund Independence Investment Associates, Inc. John Forelli & Jeff
Saef
The overall Fund returned 4.85% in the second quarter of 1999, beating the
3.86% return of the benchmark (60% S&P 500, 40% Lehman Bros. Aggregate) by
about 1%. Most of the outperformance was attributable to strong equity returns
relative to the S&P 500 benchmark. Asset allocation remained at an approximate
60% Equity/40% Fixed Income mix throughout the quarter.
The equity portion of the Fund returned 8.65% during the quarter, outpacing
the 7.05% return of the S&P 500 by 1.6%. Capital goods companies led your
performance with Honeywell (being bought by Allied Signal) and Tyco
International performing very well. Technology stocks also performed well with
Computer Associates, Texas Instruments and Teradyne leading the charge. In
all, our value models performed very well while growth models did not. Our
balanced approach to equity investing paid off this quarter as cheap stocks
with improving fundamentals outperformed the market. Fixed Income returned -
0.83% for the quarter, ahead of the -0.88% return of the Lehman Bros.
Aggregate Index.
At the end of the quarter, the Federal Reserve raised rates by 25 basis
points and adopted a "neutral bias". The stock market took this as a positive,
confident that Fed Chairman Alan Greenspan will continue to control monetary
policy and guide the economy to continued growth. We continue to expect a
strong US economy with 1999 GDP growth of about 3.5% and moderate inflation
below 2%. Corporate earnings growth should accelerate in the second half of
1999 with corporate profits likely to be up in excess of 10% for the year. The
combination of strong economic growth, benign inflation, accelerating
corporate profit growth and a potential bond market rally provides a solid
foundation for continues strong performance in the US equity markets despite
lofty current valuations.
[LOGO OF HISTORICAL FUND RETURN APPEARS HERE]
Date Managed Fund Managed Composite Index
---- ------------ -----------------------
30-Jun-89 $ 10,000 $ 10,000
31-Jul-89 $ 10,315 $ 10,553
31-Aug-89 $ 10,332 $ 10,573
30-Sep-89 $ 10,366 $ 10,576
31-Oct-89 $ 10,484 $ 10,586
30-Nov-89 $ 10,578 $ 10,744
31-Dec-89 $ 10,670 $ 10,879
31-Jan-90 $ 10,274 $ 10,439
28-Feb-90 $ 10,317 $ 10,518
31-Mar-90 $ 10,435 $ 10,657
30-Apr-90 $ 10,242 $ 10,476
31-May-90 $ 10,762 $ 11,139
30-Jun-90 $ 10,914 $ 11,190
31-Jul-90 $ 11,023 $ 11,242
31-Aug-90 $ 10,507 $ 10,653
30-Sep-90 $ 10,287 $ 10,435
31-Oct-90 $ 10,335 $ 10,485
30-Nov-90 $ 10,795 $ 10,937
31-Dec-90 $ 11,113 $ 11,169
31-Jan-91 $ 11,427 $ 11,479
28-Feb-91 $ 11,872 $ 11,939
31-Mar-91 $ 12,042 $ 12,122
30-Apr-91 $ 12,100 $ 12,209
31-May-91 $ 12,408 $ 12,499
30-Jun-91 $ 12,086 $ 12,206
31-Jul-91 $ 12,373 $ 12,569
31-Aug-91 $ 12,668 $ 12,861
30-Sep-91 $ 12,705 $ 12,890
31-Oct-91 $ 12,864 $ 13,034
30-Nov-91 $ 12,690 $ 12,836
31-Dec-91 $ 13,555 $ 13,785
31-Jan-92 $ 13,345 $ 13,555
29-Feb-92 $ 13,439 $ 13,678
31-Mar-92 $ 13,266 $ 13,506
30-Apr-92 $ 13,547 $ 13,743
31-May-92 $ 13,740 $ 13,914
30-Jun-92 $ 13,781 $ 13,915
31-Jul-92 $ 14,164 $ 14,374
31-Aug-92 $ 14,057 $ 14,292
30-Sep-92 $ 14,233 $ 14,472
31-Oct-92 $ 14,100 $ 14,387
30-Nov-92 $ 14,381 $ 14,623
31-Dec-92 $ 14,601 $ 14,845
31-Jan-93 $ 14,788 $ 15,061
28-Feb-93 $ 15,013 $ 15,319
31-Mar-93 $ 15,283 $ 15,510
30-Apr-93 $ 15,055 $ 15,379
31-May-93 $ 15,281 $ 15,583
30-Jun-93 $ 15,510 $ 15,786
31-Jul-93 $ 15,492 $ 15,799
31-Aug-93 $ 16,017 $ 16,282
30-Sep-93 $ 16,079 $ 16,250
31-Oct-93 $ 16,264 $ 16,448
30-Nov-93 $ 16,110 $ 16,278
31-Dec-93 $ 16,295 $ 16,414
31-Jan-94 $ 16,675 $ 16,812
28-Feb-94 $ 16,234 $ 16,402
31-Mar-94 $ 15,757 $ 15,844
30-Apr-94 $ 15,839 $ 15,881
31-May-94 $ 15,841 $ 15,996
30-Jun-94 $ 15,684 $ 15,780
31-Jul-94 $ 16,037 $ 16,199
31-Aug-94 $ 16,286 $ 16,532
30-Sep-94 $ 15,942 $ 16,208
31-Oct-94 $ 16,012 $ 16,385
30-Nov-94 $ 15,765 $ 16,070
31-Dec-94 $ 15,931 $ 16,240
31-Jan-95 $ 16,230 $ 16,607
28-Feb-95 $ 16,717 $ 17,122
31-Mar-95 $ 16,935 $ 17,432
30-Apr-95 $ 17,311 $ 17,807
31-May-95 $ 17,975 $ 18,532
30-Jun-95 $ 18,238 $ 18,824
31-Jul-95 $ 18,528 $ 19,101
31-Aug-95 $ 18,750 $ 19,249
30-Sep-95 $ 19,306 $ 19,750
31-Oct-95 $ 19,344 $ 19,861
30-Nov-95 $ 19,965 $ 20,461
31-Dec-95 $ 20,248 $ 20,801
31-Jan-96 $ 20,560 $ 21,223
29-Feb-96 $ 20,474 $ 21,100
31-Mar-96 $ 20,497 $ 21,113
30-Apr-96 $ 20,538 $ 21,195
31-May-96 $ 20,785 $ 21,451
30-Jun-96 $ 20,983 $ 21,638
31-Jul-96 $ 20,523 $ 21,182
31-Aug-96 $ 20,699 $ 21,381
30-Sep-96 $ 21,348 $ 22,172
31-Oct-96 $ 21,869 $ 22,734
30-Nov-96 $ 22,708 $ 23,806
31-Dec-96 $ 22,417 $ 23,441
31-Jan-97 $ 22,949 $ 24,182
28-Feb-97 $ 23,028 $ 24,306
31-Mar-97 $ 22,491 $ 23,656
30-Apr-97 $ 23,100 $ 24,534
31-May-97 $ 23,769 $ 25,402
30-Jun-97 $ 24,413 $ 26,121
31-Jul-97 $ 25,793 $ 27,557
31-Aug-97 $ 25,063 $ 26,637
30-Sep-97 $ 25,905 $ 27,575
31-Oct-97 $ 25,647 $ 27,335
30-Nov-97 $ 26,261 $ 28,041
31-Dec-97 $ 26,613 $ 28,429
31-Jan-98 $ 26,908 $ 28,787
28-Feb-98 $ 28,130 $ 29,797
31-Mar-98 $ 29,170 $ 30,606
30-Apr-98 $ 29,368 $ 30,836
31-May-98 $ 29,272 $ 30,736
30-Jun-98 $ 30,095 $ 31,517
31-Jul-98 $ 29,784 $ 31,342
31-Aug-98 $ 26,995 $ 28,828
30-Sep-98 $ 27,923 $ 30,206
31-Oct-98 $ 29,408 $ 31,616
30-Nov-98 $ 30,636 $ 32,837
31-Dec-98 $ 32,047 $ 34,012
31-Jan-99 $ 32,533 $ 34,962
28-Feb-99 $ 31,647 $ 34,065
31-Mar-99 $ 32,322 $ 34,958
30-Apr-99 $ 33,252 $ 35,815
31-May-99 $ 32,727 $ 35,182
30-Jun-99 $ 33,889 $ 36,308
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Federal National Mortgage Association 9.2% 6.4%
U.S. Treasury 5.3% 12.9%
Government National Mortgage Assoc 3.9% 2.3%
Microsoft Corp. 2.7% 2.4%
General Electric Co. 2.3% 2.2%
Citigroup, Inc. 2.0% 1.6%
Time Warner, Inc. 1.6% N/A
International Business Machines Corp. 1.6% 1.2%
MCI WorldCom, Inc. 1.5% 1.7%
Intel Corp. 1.5% 1.3%
Average Annual Total Returns*
- -----------------------------
Managed Managed Composite MorningStar
Fund Index (degree) Peer Group+
---- -------------- -----------
YTD** 5.75% 6.75% 8.91%
1 Year 12.61 15.20 15.86
3 Years 17.33 18.83 21.18
5 Years 16.66 18.13 20.59
10 Years 12.98 13.76 15.03
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Governmental 24.4% Capital Equipment 7.7%
Financial 19.8% Health Care 7.0%
Technology 12.2% Retail 3.8%
Utility 8.3% Consumer Staple 3.6%
Consumer Cyclical 7.8% Energy 3.2%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
(degree)Managed Composite Index: 60% S&P 500 and 40% Lehman Brothers Govt./Corp.
Bond Index.
+Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
**Year-to-date total returns are not annualized.
8
<PAGE>
Inception: March 29, 1986
Growth & Income Fund
Independence Investment Associates, Inc. Paul F. McManus
During the second quarter of 1999, the stock market advanced further,
bringing the year-to-date returns of the S&P 500 to over 12.38%. The market
advance broadened as smaller, medium capitalization and "value" oriented
issues were strong. Such a broad market advance benefited the Fund as it
posted a return of 8.1% vs. 7.1% for the S&P500 in the second quarter. Areas
that helped performance in the quarter were specialty retailing (Home Depot
and Lowes), Aerospace (Goodrich, Honeywell) and Household Products (Avon
Products, Colgate). Areas that did not do well were transportation (U.S.
Airways, UAL, Corp.), waste management companies (Waste Management) and
software services (JD Edwards). During the quarter we continued to execute our
long term discipline of selecting individual stocks that had attractive value
and improving fundamental trends based upon our valuation model process.
The economy continues to grow at a healthy rate--in the 2.5-3.0% range and we
expect this to continue for the balance of 1999.
Inflation remains low in spite of some pressures with wage inflation and
energy prices. These appear to be offset by productivity improvements do to
technology. The Federal Reserve raised interest rates 0.25% in the quarter as
a preemptive strike on any possible inflation uptick. Also, economies that
were in crisis such as Asia/Japan are slowly recovering and should resume
growth in the year 2000.
As we look out to the balance of 1999, we expect the stock market to be in
good shape with the proviso that interest rates do not move substantially
higher and that corporate earnings grow at a healthy rate. Based upon current
data, this appears to be the likely path.
The most attractive areas of the market appear to be Financials as the
consolidation theme still is valid, media-particularly those companies such as
CBS, Viacom and Time Warner who posses content and Technology/Telecomm which
is evolving at a very rapid pace with data communications.
Within this environment, we believe the Fund is well structured and
appropriate risk management is in place.
[CHART APPEARS HERE]
Date Growth & Income Fund S&P 500 Index
---- -------------------- -------------
6/30/89 $ 10,000 $ 10,000
7/31/89 $ 10,592 $ 10,898
8/31/89 $ 10,826 $ 11,108
9/30/89 $ 10,926 $ 11,065
10/31/89 $ 10,840 $ 10,807
11/30/89 $ 10,874 $ 11,032
12/31/89 $ 11,082 $ 11,292
1/31/90 $ 10,434 $ 10,535
2/28/90 $ 10,608 $ 10,671
3/31/90 $ 10,917 $ 10,951
4/30/90 $ 10,749 $ 10,681
5/31/90 $ 11,508 $ 11,722
6/30/90 $ 11,679 $ 11,640
7/31/90 $ 11,759 $ 11,603
8/31/90 $ 11,106 $ 10,555
9/30/90 $ 10,598 $ 10,036
10/31/90 $ 10,554 $ 9,999
11/30/90 $ 11,238 $ 10,642
12/31/90 $ 11,548 $ 10,934
1/31/91 $ 12,067 $ 11,417
2/28/91 $ 12,871 $ 12,235
3/31/91 $ 13,172 $ 12,526
4/30/91 $ 13,166 $ 12,561
5/31/91 $ 13,678 $ 13,099
6/30/91 $ 13,011 $ 12,500
7/31/91 $ 13,460 $ 13,085
8/31/91 $ 13,748 $ 13,393
9/30/91 $ 13,581 $ 13,173
10/31/91 $ 13,781 $ 13,349
11/30/91 $ 13,302 $ 12,810
12/31/91 $ 14,546 $ 14,274
1/31/92 $ 14,292 $ 14,009
2/29/92 $ 14,461 $ 14,188
3/31/92 $ 14,218 $ 13,910
4/30/92 $ 14,669 $ 14,315
5/31/92 $ 14,813 $ 14,392
6/30/92 $ 14,704 $ 14,183
7/31/92 $ 14,706 $ 14,755
8/31/92 $ 14,910 $ 14,457
9/30/92 $ 15,077 $ 14,623
10/31/92 $ 15,051 $ 14,676
11/30/92 $ 15,637 $ 15,171
12/31/92 $ 15,841 $ 15,369
1/31/93 $ 16,004 $ 15,481
2/28/93 $ 16,228 $ 15,690
3/31/93 $ 16,731 $ 16,028
4/30/93 $ 16,284 $ 15,635
5/31/93 $ 16,707 $ 16,057
6/30/93 $ 16,872 $ 16,110
7/31/93 $ 16,779 $ 16,035
8/31/93 $ 17,456 $ 16,645
9/30/93 $ 17,486 $ 16,522
10/31/93 $ 17,785 $ 16,858
11/30/93 $ 17,626 $ 16,699
12/31/93 $ 17,952 $ 16,905
1/31/94 $ 18,486 $ 17,471
2/28/94 $ 17,948 $ 16,999
3/31/94 $ 17,252 $ 16,260
4/30/94 $ 17,552 $ 16,471
5/31/94 $ 17,619 $ 16,740
6/30/94 $ 17,300 $ 16,326
7/31/94 $ 17,767 $ 16,867
8/31/94 $ 18,428 $ 17,553
9/30/94 $ 17,884 $ 17,130
10/31/94 $ 18,169 $ 17,522
11/30/94 $ 17,566 $ 16,879
12/31/94 $ 17,853 $ 17,126
1/31/95 $ 18,220 $ 17,571
2/28/95 $ 18,939 $ 18,253
3/31/95 $ 19,359 $ 18,793
4/30/95 $ 19,923 $ 19,340
5/31/95 $ 20,586 $ 20,104
6/30/95 $ 21,055 $ 20,576
7/31/95 $ 21,727 $ 21,261
8/31/95 $ 21,869 $ 21,319
9/30/95 $ 22,816 $ 22,212
10/31/95 $ 22,667 $ 22,134
11/30/95 $ 23,623 $ 23,108
12/31/95 $ 23,961 $ 23,536
1/31/96 $ 24,599 $ 24,345
2/29/96 $ 24,917 $ 24,579
3/31/96 $ 25,235 $ 24,815
4/30/96 $ 25,519 $ 25,180
5/31/96 $ 26,110 $ 25,829
6/30/96 $ 26,253 $ 25,935
7/31/96 $ 25,013 $ 24,781
8/31/96 $ 25,609 $ 25,306
9/30/96 $ 26,798 $ 26,729
10/31/96 $ 27,453 $ 27,461
11/30/96 $ 29,280 $ 29,545
12/31/96 $ 28,776 $ 28,966
1/31/97 $ 30,257 $ 30,765
2/28/97 $ 30,423 $ 31,014
3/31/97 $ 29,238 $ 29,724
4/30/97 $ 30,655 $ 31,499
5/31/97 $ 32,318 $ 33,433
6/30/97 $ 33,592 $ 34,924
7/31/97 $ 36,594 $ 37,697
8/31/97 $ 34,740 $ 35,601
9/30/97 $ 36,761 $ 37,551
10/31/97 $ 35,378 $ 36,296
11/30/97 $ 36,709 $ 37,977
12/31/97 $ 37,348 $ 38,630
1/31/98 $ 37,752 $ 39,059
2/28/98 $ 40,833 $ 41,876
3/31/98 $ 43,117 $ 44,020
4/30/98 $ 43,236 $ 44,463
5/31/98 $ 42,764 $ 43,699
6/30/98 $ 44,579 $ 45,474
7/31/98 $ 44,059 $ 44,990
8/31/98 $ 37,295 $ 38,485
9/30/98 $ 39,208 $ 40,950
10/31/98 $ 42,703 $ 44,281
11/30/98 $ 45,260 $ 46,965
12/31/98 $ 48,645 $ 49,671
1/31/99 $ 50,277 $ 51,749
2/28/99 $ 48,716 $ 50,140
3/31/99 $ 50,158 $ 52,146
4/30/99 $ 52,271 $ 54,166
5/31/99 $ 50,747 $ 52,887
6/30/99 $ 54,246 $ 55,822
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Microsoft Corp. 4.7% 4.0%
General Electric Co. 3.8% 3.8%
Citigroup, Inc. 3.2% 2.9%
United Technologies Corp. 2.8% 2.4%
Lucent Technologies, Inc. 2.6% 2.3%
Intel Corp. 2.5% 1.9%
MCI WorldCom, Inc. 2.2% 2.7%
Tyco International Ltd. 2.1% 1.9%
International Business Machines Corp. 2.0% 1.5%
CBS Corp. 1.7% N/A
Average Annual Total Returns*
- -----------------------------
Growth & Income S&P 500 MorningStar
Fund Index Peer Group+
---- ----- -----------
YTD** 11.52% 12.38% 11.82%
1 Year 21.69 22.76 19.57
3 Years 27.37 29.11 26.11
5 Years 25.68 27.87 25.09
10 Years 18.42 18.76 17.22
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Technology 20.1% Health Care 10.2%
Financial 15.3% Retail 6.5%
Capital Equipment 12.0% Consumer Staple 5.2%
Utility 11.8% Energy 3.8%
Consumer Cyclical 10.9% Transportation 1.8%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the Fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although
gathered from reliable sources, data completeness and accuracy cannot be
guaranteed.
** Year-to-date total returns are not annualized.
9
<PAGE>
Inception: May 1, 1996
Equity Index Fund
State Street Global Advisors Management Team
The Equity Index Fund continued its recent streak of gains in the second
quarter of 1999, gaining 7.04%. By comparison, the S&P 500 Index gained 7.05%.
The Fund has managed a double digit gain already this year, rising 12.42%. The
S&P 500 Index has gained 12.38% in the same time period. The Fund has risen
over 76% in the last 26 months.
Smaller stocks outperformed the large capitalization names in the second
quarter, ending a long run of outperformance by the large caps. The Russell
2000 Index (a small cap index) gained 15.55% during the second quarter, while
the S&P MidCap Index gained 14.16%. For all of 1999, the S&P 500 is still the
leader, posting a gain of 12.38%, compared to the Russell 2000 gain of 9.28%
and the MidCap gain of 6.87%.
Assets in the Equity Index Fund grew by over 18% in the second quarter. The
Fund was valued at nearly $340 million at the end of June.
The top ten names in the S&P 500 at the end of March were, in order:
Microsoft, General Electric, IBM, Walmart, Cisco, Lucent, Intel, Exxon, AT&T,
and Merck. IBM was a big mover, going from number ten to number three. These
10 names represented 21.60% of the S&P 500 as of June 30. The top twenty-five
names accounted for nearly 39% of the S&P 500 at the end of June.
The Equity Index Fund 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.
[LOGO OF HISTORICAL FUND RETURN APPEARS HERE]
Date Equity Index Fund S&P 500 Index
---- ----------------- -------------
Apr-96 $ 10,000 $ 10,000
31-May-96 $ 10,210 $ 10,258
28-Jun-96 $ 10,231 $ 10,300
31-Jul-96 $ 9,825 $ 9,842
30-Aug-96 $ 9,971 $ 10,050
30-Sep-96 $ 10,509 $ 10,615
31-Oct-96 $ 10,787 $ 10,906
29-Nov-96 $ 11,561 $ 11,734
31-Dec-96 $ 11,423 $ 11,504
31-Jan-97 $ 12,133 $ 12,218
28-Feb-97 $ 12,221 $ 12,317
31-Mar-97 $ 11,736 $ 11,805
30-Apr-97 $ 12,409 $ 12,510
30-May-97 $ 13,119 $ 13,278
30-Jun-97 $ 13,727 $ 13,870
31-Jul-97 $ 14,821 $ 14,971
29-Aug-97 $ 13,993 $ 14,139
30-Sep-97 $ 14,756 $ 14,913
31-Oct-97 $ 14,267 $ 14,415
28-Nov-97 $ 14,887 $ 15,082
31-Dec-97 $ 15,169 $ 15,342
1-Jan-98 $ 15,336 $ 15,512
27-Feb-98 $ 16,441 $ 16,631
31-Mar-98 $ 17,280 $ 17,482
30-Apr-98 $ 17,455 $ 17,658
29-May-98 $ 17,151 $ 17,355
30-Jun-98 $ 17,850 $ 18,060
31-Jul-98 $ 17,664 $ 17,867
31-Aug-98 $ 15,096 $ 15,284
30-Sep-98 $ 16,067 $ 16,263
30-Oct-98 $ 17,369 $ 17,586
30-Nov-98 $ 18,419 $ 18,652
31-Dec-98 $ 19,484 $ 19,727
29-Jan-99 $ 20,296 $ 20,552
26-Feb-99 $ 19,669 $ 19,913
31-Mar-99 $ 20,464 $ 20,710
30-Apr-99 $ 21,252 $ 21,512
28-May-99 $ 20,743 $ 21,004
30-Jun-99 $ 21,904 $ 22,170
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Microsoft Corp. 4.0% 3.4%
General Electric Co. 3.2% 3.3%
Aim Stic Prime Fund 2.5% 1.2%
International Business Machines Corp. 2.0% 1.7%
Wal-Mart Stores, Inc. 1.9% 1.8%
Cisco Systems, Inc. 1.8% 1.4%
Lucent Technologies 1.8% 1.4%
Intel Corp. 1.7% 1.9%
Exxon Corp. 1.6% 1.7%
AT&T Corp. 1.5% 1.3%
Average Annual Total Returns*
- -----------------------------
Equity Index S&P 500 MorningStar
Fund(1) Index(dot) Peer Group+
------- ---------- -----------
YTD** 12.42% 12.38% 11.82%
1 Year 22.72 22.76 19.57
3 Years 28.88 29.11 26.11
Since Inception 28.12 28.58 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Technology 21.4% Retail 6.8%
Financial 18.2% Consumer Cyclical 6.7%
Health Care 10.5% Consumer Staple 6.5%
Utility 10.3% Energy 5.8%
Capital Equipment 8.7% Basic Material 3.2%
(1) Returns reflect waiver of advisory fee, reimbursement of all non-advisory
fund expenses, and extra-ordinary capital contributions of $84,000 in 1996 and
$94,000 in 1997.
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund does not reflect expense and charges
of the applicable separate accounts and variable products, all of which vary to
a considerable extent and are described in your product prospectus.
(dot) "Standard & Poor's 500" is a trademark of The McGraw-Hill Companies, Inc.
and has been licensed for use by John Hancock Mutual Life Insurance Company. The
product is not sponsored, endorsed, sold or promoted by Standard & Poor's and
Standard & Poor's makes no representation regarding the advisability of
investing in the product.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
10
<PAGE>
Inception: May 1, 1996
Large-Cap Value Fund T. Rowe Price Associates, Inc. Brian C. Rogers
For the six months ended June 30, the Fund posted a strong 12.08% return, in
line with the unmanaged S&P 500 Stock Index. The last three months were
particularly beneficial as value stocks, which make up the majority of fund
holdings, rebounded nicely.
Companies with exposure to the cyclical nature of the economy or to
commodities suddenly sprang to life during the past six months. Stocks that
recently did well, such as Tyco International and AT&T, had been successful
for us over the last several years, and we sold either all or part of these
positions when their prices rose to less appealing levels. Among these new
investments are Lockheed Martin, Campbell, Hershey Foods, Honeywell, Fort
James, and Merck, all of which are successful enterprises that have hit what
we believe to be temporary stumbling blocks. Their share prices have plummeted
to attractive levels in our view, and their managements are working vigorously
to improve earnings performance.
So far this year, we are pleasantly surprised by the durability of the stock
markets' strength and resilience, particularly in the face of rising interest
rates. We believe it will be difficult, but not impossible, for stocks to post
such robust returns in the second half of 1999. Given historically high stock
valuations and unrealistic investor expectations, we would not be surprised to
see a bit of turbulence ahead. Nevertheless, whatever happens over the short
term, our investment approach will remain constant. We will continue to
emphasize investments in sound companies that may be out of favor in the short
run but offer an attractive combination of good upside potential and
relatively limited downside risk.
[LOGO OF HISTORICAL FUND RETURN APPEARS HERE]
Date Russel 1000 Value Index Large-Cap Value Fund
---- ----------------------- --------------------
Apr-96 $ 10,000 $ 10,000
5/31/96 $ 10,125 $ 10,190
6/28/96 $ 10,133 $ 10,255
7/31/96 $ 9,750 $ 9,977
8/30/96 $ 10,029 $ 10,186
9/30/96 $ 10,428 $ 10,618
10/31/96 $ 10,831 $ 10,860
11/29/96 $ 11,616 $ 11,451
12/31/96 $ 11,468 $ 11,390
1/31/97 $ 12,024 $ 11,699
2/28/97 $ 12,201 $ 11,979
3/31/97 $ 11,762 $ 11,724
4/30/97 $ 12,256 $ 12,016
5/30/97 $ 12,941 $ 12,582
6/30/97 $ 13,496 $ 13,059
7/31/97 $ 14,511 $ 13,805
8/29/97 $ 13,994 $ 13,447
9/30/97 $ 14,840 $ 14,081
10/31/97 $ 14,425 $ 13,703
11/28/97 $ 15,063 $ 14,220
12/31/97 $ 15,503 $ 14,643
1/1/98 $ 15,283 $ 14,538
2/27/98 $ 16,312 $ 15,249
3/31/98 $ 17,310 $ 15,954
4/30/98 $ 17,426 $ 15,869
5/29/98 $ 17,167 $ 15,598
6/30/98 $ 17,387 $ 15,561
7/31/98 $ 17,081 $ 15,106
8/31/98 $ 14,539 $ 13,634
9/30/98 $ 15,373 $ 14,373
10/30/98 $ 16,564 $ 15,261
11/30/98 $ 17,336 $ 15,884
12/31/98 $ 17,926 $ 15,999
1/29/99 $ 18,069 $ 15,599
2/26/99 $ 17,814 $ 15,470
3/31/99 $ 18,183 $ 15,889
4/30/99 $ 19,881 $ 17,600
5/28/99 $ 19,662 $ 17,469
6/30/99 $ 20,233 $ 17,932
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
SBC Communications, Inc. 2.4% 2.4%
Alltel Corp. 2.0% 1.9%
Mellon Bank Corp 1.9% 1.9%
BP Amoco plc - ADR 1.7% 1.4%
GTE Corp. 1.7% 1.7%
Exxon Corp. 1.6% 1.7%
American Home Products Corp. 1.6% 1.8%
International Paper Co. 1.6% 0.5%
Atlantic Richfield Co. (ARCO) 1.5% 1.2%
General Mills, Inc. 1.5% 1.5%
Average Annual Total Returns*
- -----------------------------
Large-Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
---------- ----------- -----------
YTD** 12.08% 12.87% 12.24%
1 Year 15.24 16.37 13.75
3 Years 20.47 25.92 21.03
Since Inception 20.27 24.93 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Financial 17.7% Capital Equipment 10.2%
Utility 13.8% Consumer Cyclical 9.1%
Energy 13.6% Health Care 4.5%
Consumer Staple 11.3% Transportation 3.4%
Basic Material 11.0% Technology 2.5%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
11
<PAGE>
Inception: March 29, 1986
Large-Cap Growth Fund
Independence Investment Associates, Inc. Mark Lapman
The Large-Cap Growth Fund returned 5.89% in the second quarter, more than 2%
above the Russell 1000 Growth Index return of 3.85%. Competitive results are
very favorable as your fund comfortably exceeded the median manager for the
second quarter of 1999. The year-to-date return is a very strong 10.87%. The
market showed signs of broadening in the second quarter as value outperformed
growth as a style and small-cap outperformed large-cap. The small group of
large-cap growth companies is no longer leading the market and valuation as a
discipline has returned to favor. Our "value-oriented" models worked well this
quarter as low P/E stocks outperformed high P/E stocks. Our balanced approach
to growth investing worked well this quarter as cheaper growth stocks
outperformed by a nice margin. In particular, Tyco International and Honeywell
led strong performance in the capital goods sector while Tellabs, Computer
Associates, Lucent and Nortel led strong performance in the technology and
communications sectors. We will continue to look for strong growth companies
with reasonable valuations as we position the fund for the second half of
1999.
At the end of the quarter, the Federal Reserve raised rates by 25 basis
points. The stock market took this interest rate increase and its accompanied
"neutral basis" as a positive, confident that the Fed Chairman Alan Greenspan
will continue to control monetary policy and guide the economy to continued
growth. We expect strong economic growth (about 3.5% GDP growth) in 1999 with
the inflation rate holding under 2%. With corporate earnings growth
accelerating (we may see a 10%+ increase in corporate profits in 1999) and a
steady economic outlook, we should continue to expect consistent returns from
the US equity market.
[CHART APPEARS HERE]
Date Large-Cap Growth Fund Large-Cap Growth Benchmark
---- --------------------- --------------------------
6/30/89 $ 10,000 $ 10,000
7/31/89 $ 10,603 $ 10,898
8/31/89 $ 10,783 $ 11,108
9/29/89 $ 10,873 $ 11,065
10/31/89 $ 10,904 $ 10,807
11/30/89 $ 11,086 $ 11,032
12/29/89 $ 11,244 $ 11,292
1/31/90 $ 10,568 $ 10,535
2/28/90 $ 10,728 $ 10,671
3/30/90 $ 11,002 $ 10,951
4/30/90 $ 10,868 $ 10,681
5/31/90 $ 11,635 $ 11,722
6/29/90 $ 11,839 $ 11,640
7/31/90 $ 11,900 $ 11,603
8/31/90 $ 11,285 $ 10,555
9/28/90 $ 10,847 $ 10,036
10/31/90 $ 10,859 $ 9,999
11/30/90 $ 11,613 $ 10,642
12/31/90 $ 12,022 $ 10,934
1/31/91 $ 12,587 $ 11,417
2/28/91 $ 13,452 $ 12,235
3/28/91 $ 13,866 $ 12,526
4/30/91 $ 13,901 $ 12,561
5/31/91 $ 14,503 $ 13,099
6/28/91 $ 13,801 $ 12,500
7/31/91 $ 14,247 $ 13,085
8/30/91 $ 14,535 $ 13,393
9/30/91 $ 14,293 $ 13,173
10/31/91 $ 14,360 $ 13,349
11/27/91 $ 13,858 $ 12,810
12/31/91 $ 15,082 $ 14,274
1/31/92 $ 14,852 $ 14,009
2/28/92 $ 15,019 $ 14,188
3/31/92 $ 14,751 $ 13,910
4/30/92 $ 15,217 $ 14,315
5/29/92 $ 15,392 $ 14,392
6/30/92 $ 15,269 $ 14,183
7/31/92 $ 15,815 $ 14,755
8/31/92 $ 15,520 $ 14,457
9/30/92 $ 15,673 $ 14,623
10/30/92 $ 15,692 $ 14,676
11/30/92 $ 16,274 $ 15,171
12/31/92 $ 16,581 $ 15,369
1/29/93 $ 16,737 $ 15,481
2/26/93 $ 17,042 $ 15,690
3/31/93 $ 17,559 $ 16,028
4/30/93 $ 16,926 $ 15,635
5/28/93 $ 17,433 $ 16,057
6/30/93 $ 17,688 $ 16,110
7/30/93 $ 17,551 $ 16,035
8/31/93 $ 18,313 $ 16,645
9/30/93 $ 18,540 $ 16,522
10/29/93 $ 18,820 $ 16,858
11/30/93 $ 18,614 $ 16,699
12/31/93 $ 18,870 $ 16,905
1/31/94 $ 19,443 $ 17,471
2/28/94 $ 18,841 $ 16,999
3/31/94 $ 18,231 $ 16,260
4/29/94 $ 18,589 $ 16,471
5/31/94 $ 18,529 $ 16,740
6/30/94 $ 18,252 $ 16,326
7/29/94 $ 18,708 $ 16,867
8/31/94 $ 19,363 $ 17,553
9/30/94 $ 18,783 $ 17,130
10/31/94 $ 18,962 $ 17,522
11/30/94 $ 18,408 $ 16,879
12/30/94 $ 18,684 $ 17,126
1/31/95 $ 19,035 $ 17,571
2/28/95 $ 19,755 $ 18,253
3/31/95 $ 20,203 $ 18,793
4/28/95 $ 20,702 $ 19,340
5/31/95 $ 21,407 $ 20,104
6/30/95 $ 21,766 $ 20,576
7/31/95 $ 22,471 $ 21,261
8/31/95 $ 22,644 $ 21,319
9/29/95 $ 23,563 $ 22,212
10/31/95 $ 23,292 $ 22,134
11/30/95 $ 24,259 $ 23,108
12/29/95 $ 24,597 $ 23,536
1/31/96 $ 25,173 $ 24,345
2/29/96 $ 25,470 $ 24,579
3/29/96 $ 25,793 $ 24,815
4/30/96 $ 26,227 $ 25,180
5/31/96 $ 26,807 $ 26,059
6/28/96 $ 26,776 $ 26,095
7/31/96 $ 24,996 $ 24,566
8/30/96 $ 25,794 $ 25,200
9/30/96 $ 27,373 $ 27,035
10/31/96 $ 27,576 $ 27,198
11/29/96 $ 29,577 $ 29,240
12/31/96 $ 29,091 $ 28,668
1/31/97 $ 30,755 $ 30,678
2/28/97 $ 30,983 $ 30,471
3/31/97 $ 29,525 $ 28,822
4/30/97 $ 31,087 $ 30,735
5/30/97 $ 32,876 $ 32,954
6/30/97 $ 34,178 $ 34,272
7/31/97 $ 37,476 $ 37,303
8/29/97 $ 35,611 $ 35,120
9/30/97 $ 37,829 $ 36,848
10/31/97 $ 36,305 $ 35,486
11/28/97 $ 37,654 $ 36,994
12/31/97 $ 38,077 $ 37,408
1/30/98 $ 39,095 $ 38,526
2/27/98 $ 42,794 $ 41,424
3/31/98 $ 45,216 $ 43,075
4/30/98 $ 45,559 $ 43,672
5/29/98 $ 44,576 $ 42,432
6/30/98 $ 46,790 $ 45,031
7/31/98 $ 46,563 $ 44,733
8/31/98 $ 39,271 $ 38,020
9/30/98 $ 41,569 $ 40,940
10/30/98 $ 44,701 $ 44,231
11/30/98 $ 48,252 $ 47,595
12/31/98 $ 53,122 $ 51,887
1/29/99 $ 56,079 $ 54,934
2/26/99 $ 53,379 $ 52,424
3/31/99 $ 55,627 $ 55,185
4/30/99 $ 56,447 $ 55,256
5/28/99 $ 54,814 $ 53,558
6/30/99 $ 58,896 $ 57,309
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Microsoft Corp. 6.1% 5.9%
General Electric Co. 4.7% 4.9%
Intel Corp. 4.3% 3.1%
Lucent Technologies, Inc. 3.9% 4.6%
Cisco Systems, Inc. 3.5% 1.6%
MCI WorldCom, Inc. 2.8% 3.3%
Home Depot, Inc. 2.7% 3.4%
United Technologies Corp. 2.7% 2.8%
Citigroup, Inc. 2.6% 1.7%
America Online, Inc. 2.2% N/A
Average Annual Total Returns*
- -----------------------------
Large-Cap Large-Cap Growth MorningStar
Growth Fund Benchmark (1) Peer Group+
----------- ------------- -----------
YTD** 10.87% 10.45% 15.20%
1 Year 25.87 27.27 29.70
3 Years 30.05 29.98 27.38
5 Years 26.40 28.55 20.97
10 Years 19.40 19.08 18.36
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Technology 29.3% Retail 7.2%
Health Care 17.8% Consumer Staple 7.0%
Capital Equipment 13.6% Utility 2.8%
Consumer Cyclical 11.0% Transportation 1.6%
Financial 7.9% Governmental 1.5%
(1) The index is represented by the S&P 500 for the period April 1986 to April
1996 and the Russell Large Cap Growth Index for the period May 1996 to December
31, 1998.
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
12
<PAGE>
Inception: May 1, 1996
Mid-Cap Value Fund
Neuberger Berman, LLC Kassen/Gendelman/Mullick
We are encouraged with preliminary signs that the market has broadened and
that value investing has rebounded. The first signs of the change became
apparent in April when economies in the United States, Japan, Asia and Latin
America performed stronger than many analysts expected causing domestic
interest rates to rise. When interest rates increase, price to earnings ratios
for many highly valued growth companies contract. Traditionally, this backdrop
causes investors to reexamine more attractively valued companies: including
many of the value-oriented and economically sensitive companies in your Fund.
For the quarter, your Fund returned 15.8% outperforming both the Russell
Midcap Value Index (11.8%) and the S&P 500 (7.05%). Year-to-date, your Fund
outperformed the Russell Midcap Value Index 11.01% to 7.72%.
Our value style of investing and your Fund's current sector allocations
benefited from a value-stock recovery. The Fund's emphasis on individual
stocks in the materials and processing (10% of the assets of June 30, 1999),
financial (27% of assets) and consumer discretionary (13% of assets) sectors
added value.
Merger activity produced several of the best performing stocks in the
quarter. We believe merger activity serves to reinforce the attractive
valuations of many of our investments. After all, what better indication of
value is there than a corporate buyer in the same industry buying another
company! In addition to Alza, which was purchased by Abbott, Gulfstream
Aerospace announced that it would be merged into General Dynamics.
Looking forward, we are encouraged by the apparent broadening of the market
during the second quarter, which stands in stark contrast to the remarkably
narrow markets of previous quarters. We are continuing to find fundamentally
strong companies that have good earnings and are selling at attractive
valuations. We remain optimistic that the Fund is well positioned to take
advantage of changing investor sentiment.
[CHART APPEARS HERE]
Date Russel Mid-Cap Value Index Mid Cap Value Fund
---- -------------------------- ------------------
Apr-96 $ 10,000 $ 10,000
31-May-96 $ 10,096 $ 10,249
28-Jun-96 $ 10,106 $ 10,095
31-Jul-96 $ 9,625 $ 9,572
30-Aug-96 $ 10,029 $ 10,035
30-Sep-96 $ 10,397 $ 10,516
31-Oct-96 $ 10,671 $ 10,708
29-Nov-96 $ 11,341 $ 11,616
31-Dec-96 $ 11,294 $ 11,618
31-Jan-97 $ 11,648 $ 12,270
28-Feb-97 $ 11,846 $ 12,227
31-Mar-97 $ 11,486 $ 11,872
30-Apr-97 $ 11,775 $ 12,211
30-May-97 $ 12,470 $ 13,281
30-Jun-97 $ 12,933 $ 13,423
31-Jul-97 $ 13,893 $ 14,692
29-Aug-97 $ 13,730 $ 14,905
30-Sep-97 $ 14,582 $ 15,713
31-Oct-97 $ 14,139 $ 15,047
28-Nov-97 $ 14,616 $ 15,249
31-Dec-97 $ 15,175 $ 15,355
1-Jan-98 $ 14,880 $ 15,248
1-Feb-98 $ 15,874 $ 16,325
1-Mar-98 $ 16,691 $ 16,945
30-Apr-98 $ 16,598 $ 16,838
29-May-98 $ 16,211 $ 16,044
30-Jun-98 $ 16,262 $ 15,464
31-Jul-98 $ 15,438 $ 14,323
31-Aug-98 $ 13,267 $ 11,803
30-Sep-98 $ 14,041 $ 12,171
30-Oct-98 $ 14,951 $ 13,019
30-Nov-98 $ 15,476 $ 13,328
31-Dec-98 $ 15,946 $ 13,615
29-Jan-99 $ 15,575 $ 13,381
26-Feb-99 $ 15,232 $ 13,015
31-Mar-99 $ 15,450 $ 13,076
30-Apr-99 $ 16,913 $ 14,378
28-May-99 $ 16,984 $ 14,538
30-Jun-99 $ 17,177 $ 15,114
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Allied Waste Industries, Inc. 3.1% N/A
SPX Corp. 2.7% N/A
Gulfstream Aerospace Corp. 2.7% N/A
SLM Holding Corp. 2.7% 2.6%
Rite Aid Corp. 2.4% N/A
Ace, Ltd. 2.3% 2.7%
Dun & Bradstreet Corp. 2.3% 2.6%
Lear Corp. 2.2% 1.8%
Bear Stearns Cos., Inc. 2.2% 1.8%
Tosco Corp. 2.2% 2.6%
Average Annual Total Returns*
- -----------------------------
Mid-Cap Russell Mid-Cap MorningStar
Value Fund Value Index Peer Group+
---------- ----------- -----------
YTD** 11.01% 7.72% 11.34%
1 Year -2.26 5.63 7.02
3 Years 14.40 19.34 17.84
Since Inception 13.94 18.63 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Financial 22.8% Health Care 8.0%
Capital Equipment 15.2% Energy 6.1%
Technology 14.5% Retail 5.8%
Consumer Cyclical 11.2% Utility 3.9%
Basic Material 9.4% Transportation 3.0%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
13
<PAGE>
Inception: May 1, 1996
Mid-Cap Growth Fund
Janus Capital Corporation James Goff
The U.S. economy continued to show strong signs of economic growth during the
first half of the year, which prompted an uptick in interest rates and higher
volatility among equities. However, by the end of the period, the stock market
posted sizable gains, with small and mid-sized stocks leading the way.
The Fund registered solid gains during the first half and outperformed its
benchmark, the Russell MidCap Growth Index. While our media and
telecommunications positions bolstered the Fund's returns, several
pharmaceutical holdings were a drag on returns. Among our media-related
companies, Hispanic Broadcasting and Univision posted exceptional results.
Their respective radio and television programming targets the Hispanic
audience, which is the fastest growing demographic segment in the United
States. Both companies possess a wide geographic footprint, and, thanks to
their broad geographic and demographic reach, advertisers are beginning to
realize the value of their franchises. Revenues have grown as a result.
We added positions in Metromedia Fiber and Nextlink during the period, and
both stocks appreciated substantially. Bandwidth demand has increased
dramatically due to the Internet and the growing need for data services. To
meet these demands, Metromedia and Nextlink are building state-of-the-art
fiber-optic networks using the latest technological advancements in and around
major U.S. cities, which offer these companies significant advantages and cost
savings over the incumbent telecommunications operators.
On the downside, Sepracor, which reformulates existing drugs to produce more
effective compounds with fewer side effects, came under pressure late in the
second quarter following Johnson & Johnson's decision to curtail research on
an improved allergy compound. While the move may produce a short-term hit to
earnings, the company has a solid pipeline of drugs in development, and we
remain optimistic about the company's prospects.
Looking ahead, despite continued economic growth and increased volatility, we
remain optimistic because the Fund consists of what we believe are "all-
weather" companies with dominant business models and dynamic earnings growth
potential.
[CHART HISTORICAL FUND RETURN APPEARS HERE]
Date Russel Mid-Cap Growth Index Mid-Cap Growth Fund
---- --------------------------- -------------------
Apr-96 $ 10,000 $ 10,000
5/31/96 $ 10,204 $ 10,252
6/28/96 $ 9,896 $ 10,020
7/31/96 $ 9,128 $ 9,186
8/30/96 $ 9,621 $ 9,881
9/30/96 $ 10,232 $ 10,473
10/31/96 $ 10,112 $ 10,325
11/29/96 $ 10,708 $ 10,408
12/31/96 $ 10,528 $ 10,269
1/31/97 $ 10,993 $ 9,994
2/28/97 $ 10,751 $ 9,827
3/31/97 $ 10,144 $ 9,079
4/30/97 $ 10,392 $ 9,186
5/30/97 $ 11,323 $ 10,176
6/30/97 $ 11,637 $ 10,693
7/31/97 $ 12,751 $ 10,907
8/29/97 $ 12,626 $ 10,950
9/30/97 $ 13,265 $ 11,734
10/31/97 $ 12,601 $ 11,385
11/28/97 $ 12,733 $ 11,547
12/31/97 $ 12,901 $ 11,980
1/1/98 $ 12,668 $ 11,743
2/27/98 $ 13,859 $ 12,728
3/31/98 $ 14,440 $ 13,429
4/30/98 $ 14,636 $ 13,656
5/29/98 $ 14,034 $ 13,098
6/30/98 $ 14,431 $ 14,211
7/31/98 $ 13,813 $ 14,045
8/31/98 $ 11,177 $ 11,448
9/30/98 $ 12,022 $ 12,370
10/30/98 $ 12,907 $ 13,332
11/30/98 $ 13,778 $ 14,295
12/31/98 $ 15,205 $ 16,660
1/29/99 $ 15,661 $ 17,539
2/26/99 $ 14,895 $ 16,892
3/31/99 $ 15,724 $ 19,064
4/30/99 $ 16,441 $ 20,313
5/28/99 $ 16,230 $ 20,063
6/30/99 $ 17,363 $ 21,164
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Amazon.com, Inc. 5.4% 1.9%
Apollo Group, Inc. 5.4% 12.8%
Vitesse Semiconductor Corp. 5.0% 7.1%
Paychex, Inc. 4.8% 3.8%
Exodus Communications, Inc. 4.6% 0.6%
Hispanic Broadcasting Corp. 4.5% N/A
NEXTLINK Communications, Inc. 4.0% 0.0%
McLeodUSA, Inc. 3.7% N/A
Metromedia Fiber Network, Inc. 3.6% N/A
eBay, Inc. 3.4% N/A
Average Annual Total Returns*
- -----------------------------
Mid-Cap Russell Mid-Cap MorningStar
Growth Fund Growth Index Peer Group+
----------- ------------ -----------
YTD** 27.03% 14.19% 15.72%
1 Year 48.93% 20.31 20.07
3 Years 28.30 20.61 16.23
Since Inception 26.73 19.03 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Technology 39.5% Health Care 7.5%
Consumer Cyclical 16.4% Capital Equipment 6.9%
Retail 10.1% Transportation 1.1%
Financial 9.3% N/A 0.0%
Utility 9.2% N/A 0.0%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
14
<PAGE>
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment Associates, Inc. D. Avery/D. Canavan
The Real Estate Equity Fund performed well in the second-quarter with a total
return of 12.3%. This compared favorably to the fund's benchmark return of
10.6%. Cyclical stocks and yield stocks also performed well. For example, the
Russell 2000 representing a broad market advanced 15% while the Utility Index,
representing a yield component added 10.6%. The S&P 500, that has been
dominated by a narrow group of stocks, was up only 6.7%. Market volatility in
the quarter steered investors to value stocks and yield stocks. REITs satisfy
both criteria and therefore participated in the market broadening. The best
performing property sector in the quarter was the Apartment Sector while
Regional Malls had the lowest returns during the period. The Fund is
overweight in apartments and underweight in regional malls so sector selection
contributed to relative performance. While the major positions in Apartment
REITs aided performance in the quarter the four best performers were Office
REITs including Prentiss Properties, Brandywine Realty, Liberty Property, and
Kilroy Realty. On the bottom of the performance ranking were the two regional
mall REITs, Simon Property Group and JP Realty and the fund's hotel holding,
Felcor Realty.
The fine performance of REITs in the quarter brought valuation levels back to
a reasonable range. The supply demand equation for real estate is close to
equilibrium. The near term earnings outlook on average for the REIT Group is
in the high single digit range. Adding that to the current 6.7% yield
indicates total return potential in the 12-14% range. This could be attractive
in a volatile market where investors seek safety. REITs have a low correlation
with large capitalization growth and technology stocks. The Real Estate Equity
Fund continues to have a place in a portfolio seeking diversification and risk
adjustment.
[CHART OF HISTORICAL FUND RETURN APPEARS HERE]
Date Real Estate Equity Fund Wilshire Real Estate Index
---- ----------------------- --------------------------
30-Jun-89 $ 10,000 $ 10,000
31-Jul-89 $ 10,544 $ 10,316
31-Aug-89 $ 10,551 $ 10,207
29-Sep-89 $ 10,528 $ 10,184
31-Oct-89 $ 10,112 $ 9,675
30-Nov-89 $ 9,973 $ 9,531
29-Dec-89 $ 10,015 $ 9,527
31-Jan-90 $ 9,619 $ 9,078
28-Feb-90 $ 9,585 $ 9,075
30-Mar-90 $ 9,453 $ 9,054
30-Apr-90 $ 9,397 $ 8,878
31-May-90 $ 9,371 $ 8,839
29-Jun-90 $ 9,399 $ 8,856
31-Jul-90 $ 9,166 $ 8,517
31-Aug-90 $ 8,408 $ 7,522
28-Sep-90 $ 7,767 $ 6,650
31-Oct-90 $ 7,367 $ 6,171
30-Nov-90 $ 7,852 $ 6,423
31-Dec-90 $ 7,865 $ 6,340
31-Jan-91 $ 8,886 $ 6,957
28-Feb-91 $ 9,158 $ 7,366
28-Mar-91 $ 9,897 $ 8,022
30-Apr-91 $ 9,920 $ 7,957
31-May-91 $ 10,203 $ 8,080
28-Jun-91 $ 9,845 $ 7,682
31-Jul-91 $ 9,837 $ 7,650
30-Aug-91 $ 9,875 $ 7,557
30-Sep-91 $ 9,996 $ 7,471
31-Oct-91 $ 9,818 $ 7,303
27-Nov-91 $ 9,629 $ 7,060
31-Dec-91 $ 10,501 $ 7,610
31-Jan-92 $ 10,918 $ 7,968
28-Feb-92 $ 10,801 $ 7,947
31-Mar-92 $ 10,768 $ 7,775
30-Apr-92 $ 10,624 $ 7,646
29-May-92 $ 10,935 $ 7,676
30-Jun-92 $ 10,658 $ 7,445
31-Jul-92 $ 10,972 $ 7,473
31-Aug-92 $ 11,005 $ 7,360
30-Sep-92 $ 11,278 $ 7,640
30-Oct-92 $ 11,479 $ 7,721
30-Nov-92 $ 11,614 $ 7,788
31-Dec-92 $ 12,182 $ 8,169
29-Jan-93 $ 13,125 $ 8,737
26-Feb-93 $ 13,703 $ 9,160
31-Mar-93 $ 14,664 $ 9,775
30-Apr-93 $ 13,857 $ 9,221
28-May-93 $ 13,634 $ 9,076
30-Jun-93 $ 13,911 $ 9,314
30-Jul-93 $ 14,100 $ 9,503
31-Aug-93 $ 14,193 $ 9,700
30-Sep-93 $ 15,023 $ 10,142
29-Oct-93 $ 14,743 $ 9,856
30-Nov-93 $ 14,108 $ 9,426
31-Dec-93 $ 14,289 $ 9,415
31-Jan-94 $ 14,628 $ 9,697
28-Feb-94 $ 15,234 $ 10,094
31-Mar-94 $ 14,777 $ 9,626
29-Apr-94 $ 14,874 $ 9,734
31-May-94 $ 15,176 $ 9,937
30-Jun-94 $ 14,774 $ 9,741
29-Jul-94 $ 14,690 $ 9,763
31-Aug-94 $ 14,711 $ 9,756
30-Sep-94 $ 14,628 $ 9,594
31-Oct-94 $ 14,002 $ 9,242
30-Nov-94 $ 13,529 $ 8,881
30-Dec-94 $ 14,698 $ 9,569
31-Jan-95 $ 14,191 $ 9,260
28-Feb-95 $ 14,489 $ 9,550
31-Mar-95 $ 14,528 $ 9,605
28-Apr-95 $ 14,342 $ 9,536
31-May-95 $ 14,952 $ 9,852
30-Jun-95 $ 15,190 $ 10,023
31-Jul-95 $ 15,477 $ 10,185
31-Aug-95 $ 15,584 $ 10,309
29-Sep-95 $ 15,956 $ 10,499
31-Oct-95 $ 15,419 $ 10,173
30-Nov-95 $ 15,481 $ 10,279
29-Dec-95 $ 16,508 $ 10,875
31-Jan-96 $ 16,700 $ 11,025
29-Feb-96 $ 16,875 $ 11,244
29-Mar-96 $ 17,027 $ 11,335
30-Apr-96 $ 16,969 $ 11,386
31-May-96 $ 17,285 $ 11,640
28-Jun-96 $ 17,645 $ 11,872
31-Jul-96 $ 17,590 $ 11,767
30-Aug-96 $ 18,332 $ 12,267
30-Sep-96 $ 18,839 $ 12,573
31-Oct-96 $ 19,328 $ 12,914
29-Nov-96 $ 19,997 $ 13,450
31-Dec-96 $ 21,967 $ 14,885
31-Jan-97 $ 22,208 $ 15,098
28-Feb-97 $ 22,190 $ 15,107
31-Mar-97 $ 22,063 $ 15,159
30-Apr-97 $ 21,398 $ 14,669
30-May-97 $ 22,068 $ 15,106
30-Jun-97 $ 23,201 $ 15,855
31-Jul-97 $ 23,825 $ 16,377
29-Aug-97 $ 23,673 $ 16,256
30-Sep-97 $ 25,731 $ 17,859
31-Oct-97 $ 24,804 $ 17,100
28-Nov-97 $ 25,120 $ 17,443
31-Dec-97 $ 25,750 $ 17,832
1-Jan-98 $ 25,019 $ 17,581
27-Feb-98 $ 24,576 $ 17,356
31-Mar-98 $ 25,194 $ 17,698
30-Apr-98 $ 24,407 $ 17,140
29-May-98 $ 24,238 $ 16,976
30-Jun-98 $ 24,161 $ 16,886
31-Jul-98 $ 22,526 $ 15,710
31-Aug-98 $ 20,494 $ 14,078
30-Sep-98 $ 21,906 $ 14,867
30-Oct-98 $ 21,360 $ 14,663
30-Nov-98 $ 21,663 $ 14,939
31-Dec-98 $ 21,448 $ 14,725
29-Jan-99 $ 20,861 $ 14,405
26-Feb-99 $ 20,351 $ 14,292
31-Mar-99 $ 20,249 $ 14,214
30-Apr-99 $ 22,394 $ 15,730
28-May-99 $ 22,981 $ 15,995
30-Jun-99 $ 22,739 $ 15,724
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Equity Residential Properties Trust 4.8% 4.7%
Avalonbay Communities, Inc. 4.7% 4.2%
Equity Office Properties Trust 4.5% 4.0%
BRE Properties, Inc. 4.0% 3.7%
Post Properties Inc. 3.5% 3.2%
Duke Realty Investments, Inc. 3.5% 3.5%
Liberty Property Trust 3.2% 3.1%
Prentiss Properties Trust 3.2% 3.0%
Catellus Development Corp. 3.2% 2.9%
JDN Realty Corp. 2.9% 2.9%
Average Annual Total Returns*
- -----------------------------
Real Estate Wilshire Real
Equity Fund Estate Index
----------- ------------
YTD** 6.02% 6.78%
1 Year -5.89 -6.88
3 Years 8.82 9.82
5 Years 9.01 10.05
10 Years 8.56 4.63
Top Industries (as of June 30, 1999)
- ------------------------------------
% of six months ago
investments % of investments
----------- ----------------
Real Estate
Investment Trust 96.8% 97.1%
Real Estate Development 3.2% 2.9%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original costs. Sector investing entails special risks as discussed in the
prospectus. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
** Year-to-date total returns are not annualized.
15
<PAGE>
Inception: May 1, 1998
Small/Mid-Cap CORE Fund
Goldman Sachs Asset Management Jones/Clark/Pinter
For the quarter ended June 30, 1999, the Small/Mid Cap CORE Fund returned
16.23%, slightly underperforming its benchmark, the Russell 2500 Index (the
"Index"), which returned 16.40%. Since inception (May 1, 1998), the Fund
returned -1.63%, underperforming the Index, which returned 0.49%. The primary
reasons for the Fund's performance stem from its smaller market capitalization
bias, its value-oriented methodology and stock selection.
In the second quarter, value-oriented and small capitalization stocks staged
a comeback, and claimed market leadership, a marked change compared to first
quarter 1999 and from 1998. The Index rose 16.2% during the second quarter,
whereas the Russell 1000 Index rose only 7.1%. In another turnaround, the
large growth versus value disparity also reversed course. However, by the end
of the quarter, the market reasserted its preference for large-cap growth
stocks. The shifting back and forth between size and style categories meant
that volatility in the market remained quite high during the quarter.
We prefer stocks with attractive valuations, lower-than-average risk, good
momentum and favorable analyst opinions. Over the long-term, these factors
have historically led to excess returns, although they often do not produce
positive results simultaneously. During the second quarter, our concentration
on stocks with attractive valuations and favorable research analyst opinions
contributed positively to returns. However, with the rapid turnabout in market
leadership, stock with good momentum and lower than average risk fared poorly,
penalizing overall return.
We intend to maintain our disciplined, long-term approach to equity
investing, and, through our combined qualitative and quantitative stock
selection strategy, will seek to generate solid long-term returns for our
clients.
[LOGO OF HISTORICAL FUND RETURN APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Date Small/Mid Cap Core Fund Russell 2500 Index
---- ----------------------- ------------------
Apr-98 $10,000 $10,000
5/29/98 $ 9,577 $ 9,536
6/30/98 $ 9,721 $ 9,547
7/31/98 $ 9,040 $ 8,891
8/31/98 $ 7,377 $ 7,214
9/30/98 $ 7,776 $ 7,726
10/30/98 $ 7,960 $ 8,149
11/30/98 $ 8,422 $ 8,552
12/31/98 $ 9,019 $ 9,070
1/29/99 $ 8,940 $ 9,055
2/26/99 $ 8,305 $ 8,460
3/31/99 $ 8,438 $ 8,641
4/30/99 $ 9,172 $ 9,414
5/28/99 $ 9,251 $ 9,560
6/30/99 $ 9,810 $10,058
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Small/Mid-Cap Russell 2500 Morningstar
CORE Fund Index Peer Group+
--------- ----- -----------
YTD** 8.78% 10.88% 10.46%
1 Year .92 5.35 5.50
Since Inception -1.63 0.49 N/A
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Tiffany & Co. 1.1% N/A
QUALCOMM, Inc. 0.9% 0.6%
Kerr-McGee Corp. 0.9% 0.5%
Allergan, Inc. 0.9% 0.6%
Siebel Systems, Inc. 0.9% 0.1%
Murphy Oil Corp. 0.8% 0.6%
Best Buy Co., Inc. 0.8% 0.5%
Biogen, Inc. 0.6% 0.5%
United States Cellular Corp. 0.6% 0.8%
LSI Logic Corp. 0.6% N/A
Top Ten Sectors (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of % of
investments investments
Technology 22.6% Retail 8.1%
Financial 15.6% Utility 6.4%
Consumer Cyclical 12.8% Basic Material 6.0%
Capital Equipment 12.3% Energy 4.0%
Health Care 8.3% Consumer Staple 2.4%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Small-company investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
16
<PAGE>
Inception: May 1, 1994
Small/Mid-Cap Growth Fund (Formerly Diversified Mid-Cap Growth)
Wellington Management Company, LLP Frank V. Wisneski
We are very optimistic about the small- and mid-cap sectors of the market. The
US economy continues to grow at a healthy clip while inflation remains benign,
suggesting interest rates are unlikely to increase significantly. With
investors feeling more confident, a broadening of investments into under-valued
sectors appears to be occurring. During the second quarter, the mega-cap stocks
which had fueled the strong market advance since last year, began to lag. The
market broadened and investors began to purchase smaller and mid-cap companies.
We expect this renewed interest in smaller stocks to continue. For the 6-month
period ended June 30, 1999, the Small/Mid Cap Growth Fund has returned 10.33%
trailing the 16.99% return of the Russell Mid-Cap Growth Index.
Since we assumed management of the Fund on May 1, 1999, we have markedly
repositioned the Fund. The average market capitalization of the Fund, at $1.733
billion is less than half what it was in May. Further, we have slashed the
number of holdings from over 125 to 59 to focus on industry niches and
companies where we have identified potential for growth such as the Computer
Software and Services business. While elements of our strategy--owning only
those companies which have been profitable for at least 3 years and our
generally smaller average capitalization bias--have not played to the market's
strength short-term, we are confident that our approach will produce solid
long-term returns.
Some of the Fund's recent stock successes include Whole Foods Market which has
gotten its store costs in line and reported better-than-expected earnings. The
recall problems at Henry Schein were resolved and quarterly earnings were above
consensus; the stock, which had hit a panic low of $20 in mid-April, closed out
the quarter near $32. New additions to the portfolio include Waters
Corporation, a leader in the analytical instrumentation techniques for life
science research; Hanover Compressor, a play on natural gas compression
services; and National Commerce Bancorporation, a high quality bank in the
Southern US whose supermarket branch niche business model has consistently
produced 20% earnings growth.
[CHART APPEARS HERE]
Date Russel Mid-Cap Growth Fund Small/Mid-Cap Growth Fund
---- -------------------------- -------------------------
Apr-94 $ 10,000 $ 10,000
31-May-94 $ 10,015 $ 10,020
30-Jun-94 $ 9,584 $ 10,043
29-Jul-94 $ 9,849 $ 10,066
31-Aug-94 $ 10,437 $ 10,359
30-Sep-94 $ 10,265 $ 10,094
31-Oct-94 $ 10,442 $ 10,263
30-Nov-94 $ 9,982 $ 9,992
30-Dec-94 $ 10,121 $ 10,056
31-Jan-95 $ 10,243 $ 9,934
28-Feb-95 $ 10,788 $ 10,283
31-Mar-95 $ 11,216 $ 10,798
28-Apr-95 $ 11,310 $ 11,069
31-May-95 $ 11,589 $ 11,087
30-Jun-95 $ 12,116 $ 11,652
31-Jul-95 $ 12,879 $ 12,564
31-Aug-95 $ 13,020 $ 12,807
29-Sep-95 $ 13,310 $ 12,764
31-Oct-95 $ 12,973 $ 12,361
30-Nov-95 $ 13,553 $ 13,160
29-Dec-95 $ 13,560 $ 13,672
31-Jan-96 $ 13,800 $ 14,151
29-Feb-96 $ 14,322 $ 14,612
29-Mar-96 $ 14,435 $ 14,939
30-Apr-96 $ 15,132 $ 16,011
31-May-96 $ 15,441 $ 16,455
28-Jun-96 $ 14,975 $ 16,237
31-Jul-96 $ 13,812 $ 14,615
30-Aug-96 $ 14,559 $ 15,484
30-Sep-96 $ 15,483 $ 16,411
31-Oct-96 $ 15,302 $ 16,926
29-Nov-96 $ 16,203 $ 17,438
31-Dec-96 $ 15,930 $ 17,820
31-Jan-97 $ 16,635 $ 17,845
28-Feb-97 $ 16,269 $ 16,824
31-Mar-97 $ 15,350 $ 15,825
30-Apr-97 $ 15,726 $ 15,365
30-May-97 $ 17,135 $ 16,487
30-Jun-97 $ 17,609 $ 16,713
31-Jul-97 $ 19,294 $ 18,028
29-Aug-97 $ 19,106 $ 17,686
30-Sep-97 $ 20,073 $ 19,025
31-Oct-97 $ 19,068 $ 18,622
28-Nov-97 $ 19,268 $ 18,188
31-Dec-97 $ 19,521 $ 18,432
1-Jan-98 $ 19,170 $ 18,106
27-Feb-98 $ 20,972 $ 19,666
31-Mar-98 $ 21,851 $ 20,641
30-Apr-98 $ 22,148 $ 20,584
29-May-98 $ 21,237 $ 19,648
30-Jun-98 $ 21,838 $ 20,389
31-Jul-98 $ 20,902 $ 19,268
31-Aug-98 $ 16,913 $ 15,227
30-Sep-98 $ 18,192 $ 16,009
30-Oct-98 $ 19,532 $ 16,874
30-Nov-98 $ 20,849 $ 17,602
31-Dec-98 $ 23,008 $ 19,466
29-Jan-99 $ 23,698 $ 19,610
26-Feb-99 $ 22,539 $ 18,154
31-Mar-99 $ 23,794 $ 19,356
30-Apr-99 $ 24,879 $ 20,435
28-May-99 $ 25,136 $ 20,604
30-Jun-99 $ 26,913 $ 21,478
Top Ten Holdings (as of June 30, 1999 )
- ---------------------------------------
% of six months ago
investments % of investments
----------- ----------------
DST Systems, Inc. 4.1% 0.5%
Dallas Semiconductor Corp. 3.6% N/A
G & K Services, Inc. 3.5% N/A
United Rentals, Inc. 3.3% N/A
Sterling Software, Inc. 3.2% N/A
Catalina Marketing Corp. 3.2% N/A
Shared Medical Systems Corp. 2.8% N/A
Synopsys, Inc. 2.7% N/A
Xilinx, Inc. 2.7% N/A
Henry Schein, Inc. 2.7% N/A
Average Annual Total Returns*
- -----------------------------
Small/Mid- Russell Mid-Cap MorningStar
Cap Growth Fund Growth Index Peer Group+
--------------- ------------ -----------
YTD** 10.33% 16.97% 15.72%
1 Year 5.34 23.24 20.07
3 Years 9.77 21.58 16.23
5 Years 16.42 22.94 20.82
Since Inception 15.99 21.12 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Technology 35.2% Retail 3.9%
Financial 16.4% Basic Material 3.7%
Consumer Cyclical 15.1% Consumer Staple 3.1%
Capital Equipment 10.6% Transportation 1.5%
Health Care 8.4% Utility 1.2%
* Total returns are for the period ended June 30, 1999, returns represent past
performance, assume reinvestment of all distributions, and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate that shares, when redeemed, may be worth more or less than their
original cost. Sector investing entail special risks as discussed in the
prospectus. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
17
<PAGE>
Inception: May 1, 1996
Small-Cap Value Fund
INVESCO Management & Research Bob Slotpole
The stock market's eight-year advance continued in the 2nd quarter, but the
tone was different. The advance included a much broader group of stocks than
the narrow list of technology and huge market cap stocks that powered the
market since early 1998. Small caps outperformed large for the first time in
the last seven quarters, with the Russell 2000 Index achieving a 15.6% return
versus 6.9% for the S&P 500.
Value indices outperformed growth in the 2nd quarter, although the difference
among small caps was not as pronounced as among larger stocks. This
outperformance was primarily the result of strong sector performance by
cyclicals and energy. Exposure to traditional valuation measures such as low
price/earnings and price/book were only of minor benefit.
The Small-Cap Value Fund returned 15.3% in the 2nd quarter versus 15.6% for
the Russell 2000 benchmark. The Fund's strong performance in June was offset by
a weak return in April, which was largely attributable to low Internet
exposure. Until recently, these stocks have dominated the Russell 2000 Index,
with Internet-related companies making up 7 of the top 10 performers in the
period from January to April. Since May, however, the top performers have been
much more evenly distributed across a variety of sectors. We expect our stock
selection model to perform better as the small cap market continues to broaden
out.
INVESCO's strategy in managing the Small-Cap Value Fund is to add value
through stock selection, while limiting exposure to other types of risk, such
as market risk (beta) and sector and industry exposures. Due to the market's
recent unusually high volatility, we have increased the Fund's holdings to the
upper end of our normal range. As the market broadens further and volatility
declines, we will consider moving to a somewhat more concentrated fund.
[CHART APPEARS HERE]
Date Russell 2000 Index Small-Cap Value Fund
---- ------------------ --------------------
Apr-96 $ 10,000 $ 10,000
31-May-96 $ 10,394 $ 10,232
28-Jun-96 $ 9,967 $ 10,126
31-Jul-96 $ 9,097 $ 9,630
30-Aug-96 $ 9,625 $ 10,161
30-Sep-96 $ 10,001 $ 10,450
31-Oct-96 $ 9,847 $ 10,340
29-Nov-96 $ 10,253 $ 10,678
31-Dec-96 $ 10,521 $ 11,033
31-Jan-97 $ 10,732 $ 11,115
28-Feb-97 $ 10,471 $ 10,927
31-Mar-97 $ 9,977 $ 10,594
30-Apr-97 $ 10,005 $ 10,831
30-May-97 $ 11,118 $ 11,818
30-Jun-97 $ 11,595 $ 12,513
31-Jul-97 $ 12,134 $ 13,256
29-Aug-97 $ 12,412 $ 13,389
30-Sep-97 $ 13,320 $ 14,242
31-Oct-97 $ 12,735 $ 13,761
28-Nov-97 $ 12,653 $ 13,863
31-Dec-97 $ 12,874 $ 13,855
1-Jan-98 $ 12,671 $ 13,514
27-Feb-98 $ 13,608 $ 14,524
31-Mar-98 $ 14,169 $ 15,130
30-Apr-98 $ 14,247 $ 15,214
29-May-98 $ 13,480 $ 14,450
30-Jun-98 $ 13,508 $ 14,450
31-Jul-98 $ 12,415 $ 13,262
31-Aug-98 $ 10,004 $ 10,895
30-Sep-98 $ 10,787 $ 11,407
30-Oct-98 $ 11,227 $ 11,727
30-Nov-98 $ 11,815 $ 12,313
31-Dec-98 $ 12,546 $ 13,029
29-Jan-99 $ 12,713 $ 12,708
26-Feb-99 $ 11,683 $ 11,869
31-Mar-99 $ 11,866 $ 11,819
30-Apr-99 $ 12,929 $ 12,612
28-May-99 $ 13,118 $ 12,790
30-Jun-99 $ 13,711 $ 13,622
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
BroadVision, Inc. 1.3% 0.3%
Stillwater Mining Co. 1.2% 0.7%
Commerce Bancorp, Inc. 1.1% 1.4%
Western Wireless Corp. 1.0% N/A
Arvin Industries, Inc. 1.0% 0.9%
Imperial Bancorp 1.0% 0.8%
Bindley Western Industries 0.9% 1.7%
Lason, Inc. 0.9% 1.2%
Hudson United Bancorp 0.9% N/A
NVR, Inc. 0.9% 0.9%
Average Annual Total Returns*
- -----------------------------
Small-Cap Russell 2000 MorningStar
Value Fund Index Peer Group+
---------- ----- -----------
YTD** 4.55% 9.28% 11.69%
1 Year -5.73 1.50 -1.11
3 Years 10.39 11.22 10.15
Since Inception 10.26 10.48 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Utility 2.5% Financial 22.4%
Transportation 1.6% Energy 5.5%
Technology 19.2% Consumer Staple 3.3%
Retail 6.6% Consumer Cyclica l9.4%
Health Care 7.6% Capital Equipment 15.9%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. Small-company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
18
<PAGE>
Inception: May 1, 1996
Small-Cap Growth Fund
John Hancock Advisers, Inc. Bernice Behar
For the six month period ending June 30, 1999, the Fund gained 14.49% and the
Russell 2000 Growth returned 12.82%. The first half of the year was marked by
two distinct periods. Growth stocks, fueled by modest economic growth, low
interest rates, and steady earnings, led the first three months. During the
second quarter, the economy accelerated causing inflationary concerns and a
rate hike by the Fed. This lent support to more economically-sensitive stocks.
Our holdings in the Communication Services industry produced consistently
high returns during both periods. Recent changes to this sector resulting from
the Telecommunications Act of 1996 have created many opportunities. This
sector, formerly dominated by large, slower growing companies, now contains
many smaller innovative companies. We have successfully focused our attention
on these securities.
Our performance in the Technology sector mirrored that of the overall market.
As growth stocks dominated the first quarter, our Technology holdings produced
impressive results. In April, growth stocks declined significantly when
interest rates increased and the economy surged. Although we began reducing
our exposure to the Internet in early April, the group's sharp declines
negatively impacted performance. Fortunately, our semiconductor holdings held
their own during the sell-off and rallied at the end of the second quarter.
Overall the sector made a modest contribution to performance for the first
half of the year.
We maintained our overweight to the consumer segment of the market with mixed
results. Favorable economic factors continue to create a positive environment
for the consumer. However, segments of this market underperformed the broad
small cap market. Our more defensive retail holdings Wild Oats and Applebee's
have performed well. Retail apparel companies Bebe, Wet Seal, the Buckle
produced negative results. Although the latter group underperformed, its
longer-term outlook remains positive. We expect to maintain our exposure.
[CHART OF HISTORICAL FUND RETURN APPEARS HERE]
Date Russell 2000 Growth Index Small-Cap Growth Fund
---- ------------------------- ---------------------
4/30/96 $ 10,000 $ 10,000
31-May-96 $ 10,513 $ 10,599
28-Jun-96 $ 9,830 $ 10,294
31-Jul-96 $ 8,630 $ 9,480
30-Aug-96 $ 9,269 $ 10,298
30-Sep-96 $ 9,746 $ 11,151
31-Oct-96 $ 9,325 $ 10,170
29-Nov-96 $ 9,585 $ 9,976
31-Dec-96 $ 9,772 $ 9,950
31-Jan-97 $ 10,016 $ 10,302
28-Feb-97 $ 9,411 $ 9,638
31-Mar-97 $ 8,747 $ 8,962
30-Apr-97 $ 8,646 $ 8,763
30-May-97 $ 9,945 $ 9,781
30-Jun-97 $ 10,282 $ 10,514
31-Jul-97 $ 10,809 $ 11,205
29-Aug-97 $ 11,133 $ 11,571
30-Sep-97 $ 12,022 $ 12,817
31-Oct-97 $ 11,300 $ 11,834
28-Nov-97 $ 11,031 $ 11,387
31-Dec-97 $ 11,037 $ 11,370
1-Jan-98 $ 10,889 $ 11,170
27-Feb-98 $ 11,851 $ 12,062
31-Mar-98 $ 12,348 $ 12,788
30-Apr-98 $ 12,424 $ 12,730
29-May-98 $ 11,521 $ 11,856
30-Jun-98 $ 11,639 $ 12,366
31-Jul-98 $ 10,667 $ 11,537
31-Aug-98 $ 8,205 $ 8,966
30-Sep-98 $ 9,037 $ 9,701
30-Oct-98 $ 9,508 $ 10,230
30-Nov-98 $ 10,245 $ 11,424
31-Dec-98 $ 11,173 $ 13,017
29-Jan-99 $ 11,675 $ 13,456
26-Feb-99 $ 10,607 $ 12,384
31-Mar-99 $ 10,985 $ 13,341
30-Apr-99 $ 11,955 $ 13,873
28-May-99 $ 11,974 $ 13,626
30-Jun-99 $ 12,605 $ 14,903
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------
% of six months ago
investments % of investments
----------- ----------------
RF Micro Devices, Inc. 1.3% 0.5%
Allegiance Telecom, Inc. 1.3% 0.2%
Coinstar, Inc. 1.2% N/A
PLX Technology, Inc. 1.2% N/A
Whittman-Hart, Inc. 1.2% 1.0%
Idec Pharmaceuticals Corp. 1.1% 0.7%
Andrx Corp. 1.1% N/A
Abacus Direct Corp. 1.1% 0.5%
QLogic Corp. 1.0% N/A
NEXTLINK Communications, Inc. 1.0% 0.7%
Average Annual Total Returns*
- -----------------------------
Small-Cap Russell 2000 MorningStar
Growth Fund Growth Index Peer Group+
----------- ------------ -----------
YTD** 14.49% 12.82% 14.88%
1 Year 20.52 8.30 11.87
3 Years 13.13 8.64 11.04
Since Inception 13.44 7.58 N/A
Top Ten Sectors (as of June 30, 1999)
- -------------------------------------
% of % of
investments investments
----------- -----------
Technology 36.3% Health Care 8.6%
Consumer Cyclical 14.8% Transportation 2.7%
Capital Equipment 11.3% Energy 2.0%
Financial 10.7% Consumer Staple 1.3%
Retail 10.1% Basic Material 1.2%
* Total returns are for the period ended June 30, 1999. Returns represent past
performance, assume reinvestment of all distributions and are not indicative of
future performance. Investment returns and principal value of fund shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. Small-company investing entails special risks as outlined in the
prospectus. The performance of the fund on this page is reported net of Trust
level charges (i.e. investment management fees and operating expenses). It does
not reflect expense and charges of the applicable separate accounts and variable
products, all of which vary to a considerable extent and are described in your
product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
19
<PAGE>
Inception: May 1, 1998
Global Equity Fund
Scudder Kemper Investments, Inc. W. Holzer & D. Espinosa
During the first half of 1999, the Fund returned 8.82%, outperforming its
benchmark, the MSCI World Index, which returned 8.69%. For the twelve months
ended June 30, 1999, the Fund returned 8.28%, underperforming the MSCI World
Index, which returned 16.08%
Developing themes that helped performance include the Theme, The Ultimate
Subcontractor and Inevitability Arrives. Themes that hurt performance included
a Mature theme or First World Savings, while being underweighted in Emerging
Markets also detracted from performance.
From June through December of 1998, the global stock market experienced a
large collapse in confidence which had its roots in emerging markets,
particularly in Asia, to 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.
In January, the bond markets took Brazil's currency devaluation in stride as
fixed income security credit spreads declined slowly during the first quarter.
During the first five weeks of the second quarter, cyclical stocks appreciated
dramatically based on the perception of renewed global growth and fatigue with
the highly-valued large-cap growth stocks. For the second quarter, the DJIA
gained over 12%, and the MSCI Emerging Markets (US$) over 26%. After the
announcement of April U.S. price data, there was more restrained consideration
of the implications for U.S. interest rates as investors oscillated between
growth and cyclical stocks.
Going forward, the evidence of global growth is helping us get a better
sighting, but we are still face volatile financial markets. However, our
investment thinking is little changed--to achieve balanced exposure to the
processes of change by focussing both on those companies that can enable,
adopt and adapt to the internet world, and those companies in traditional
industries that can adapt successfully to the difficult business environment.
[CHART APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Date Global Equity Fund MSCI World Index
---- ------------------ ----------------
Apr-98 $10,000 $10,000
29-May-98 $ 9,834 $ 9,876
30-Jun-98 $ 9,994 $10,112
31-Jul-98 $ 9,829 $10,097
31-Aug-98 $ 8,574 $ 8,752
30-Sep-98 $ 8,755 $ 8,908
30-Oct-98 $ 9,402 $ 9,715
30-Nov-98 $ 9,643 $10,295
31-Dec-98 $ 9,945 $10,799
29-Jan-99 $10,013 $11,037
26-Feb-99 $ 9,525 $10,745
31-Mar-99 $ 9,895 $11,194
30-Apr-99 $10,514 $11,637
28-May-99 $10,270 $11,213
30-Jun-99 $10,821 $11,738
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
Net Assets % of Net Assets
International Business Machines Corp. 2.7% 2.8%
Electronic Data Systems Corp. 1.8% 1.9%
Oracle Corp. 1.8% N/A
BOC Group plc 1.7% 0.9%
Enron Corp. 1.7% 1.4%
Immunex Corp. 1.6% 1.0%
General Electric Co. plc 1.6% 1.7%
Reuters Group plc 1.5% 1.5%
USEC, Inc. 1.5% 1.6%
CSX Corp. 1.5% N/A
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Global Equity MSCI +MorningStar
Fund World Index Peer Group+
------------- ----------- -----------
YTD** 8.82% 8.69% 10.10%
1 Year 8.28 16.08 8.29
Since Inception 7.01 14.72 N/A
Top Ten Countries (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of % of
investments investments'
United States 46.5% Australia 3.8%
United Kingdom 16.3% Hong Kong 2.2%
Japan 11.3% France 1.9%
Germany 10.1% Canada 1.8%
Switzerland 5.1% Austria 0.3%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. International investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
20
<PAGE>
Inception: May 1, 1996
International Balanced Fund
Brinson Partners, Inc. Management Team
The International Balanced Fund returned (3.97%) year-to-date, which lagged
the Fund's benchmark return of (0.48%). Over a one-year period ended June 30th
the Fund has returned 4.18%, versus the benchmark return of 7.00%.
The market allocation decision to underweight non-U.S. equities and bond
market allocation decisions, such as the underweight to Japan, hindered results
for the first six months of the year. Security selection also hurt performance
over this period, in large part due to stock selection in Japan which
significantly underweights the financial sector. However, for the one-year
period ending June 30th, market allocation decisions have had a neutral impact,
while security selection within European equity markets detracted from
performance. Currency strategies added to the Fund's year-to-date return
primarily due to the overweight of the New Zealand dollar. For the one-year
period, currency strategies have slightly detracted from performance.
For the six months ending June 30th, non-U.S. equity markets provided a 14.26%
dollar hedged return, with considerably mixed results across markets. Non-U.S.
bond markets provided a 1.20% dollar hedged return over this same period, as
bond yields rose sharply in most of the major developed markets. The
performance differential between non-U.S. equity and non-U.S. bond results is
substantially less over the past one-year period; non-U.S. equity markets have
provided a 9.72% return versus the 7.05% from non-U.S. bond markets, in dollar
hedged terms. This contrast in performance period results reflects the
significant increase in market volatility.
Within the International Balanced Fund, we continue to emphasize non-U.S. bond
markets. Widespread concerns about the sustainability of current low inflation
rates have placed upward pressure on global bond yields. However, fixed income
investments should profit from weaker equity markets and ensuing expectations
of weakening economic activity.
[CHART APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
International Balanced
Date Composite Benchmark International Balanced Fund
---- ------------------- ---------------------------
Apr-96 $10,000 $10,000
31-May-96 $ 9,890 $ 9,992
28-Jun-96 $ 9,940 $10,055
31-Jul-96 $ 9,847 $ 9,956
30-Aug-96 $ 9,898 $10,007
30-Sep-96 $10,066 $10,257
31-Oct-96 $10,082 $10,315
29-Nov-96 $10,396 $10,678
31-Dec-96 $10,278 $10,673
31-Jan-97 $ 9,927 $10,509
28-Feb-97 $ 9,983 $10,624
31-Mar-97 $ 9,964 $10,568
30-Apr-97 $ 9,934 $10,507
30-May-97 $10,489 $11,089
30-Jun-97 $10,896 $11,433
31-Jul-97 $10,928 $11,471
29-Aug-97 $10,411 $10,986
30-Sep-97 $10,879 $11,470
31-Oct-97 $10,433 $11,127
28-Nov-97 $10,260 $10,967
31-Dec-97 $10,287 $10,955
1-Jan-98 $10,599 $11,195
27-Feb-98 $11,099 $11,630
31-Mar-98 $11,269 $11,808
30-Apr-98 $11,412 $11,952
29-May-98 $11,366 $11,952
30-Jun-98 $11,383 $11,915
31-Jul-98 $11,437 $11,962
31-Aug-98 $10,597 $11,270
30-Sep-98 $10,644 $11,435
30-Oct-98 $11,534 $12,221
30-Nov-98 $11,832 $12,443
31-Dec-98 $12,239 $12,925
29-Jan-99 $12,171 $12,914
26-Feb-99 $11,823 $12,390
31-Mar-99 $12,148 $12,558
30-Apr-99 $12,482 $12,778
28-May-99 $11,979 $12,313
30-Jun-99 $12,180 $12,412
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury - Inflation Index 9.7% 9.2%
Government of France 6.8% 6.3%
Government of Spain 5.2% 4.9%
U.K. Treasury 4.6% 6.0%
Queensland Treasury Corp. 4.5% 4.2%
Government of Canada 4.4% 4.1%
Treuhandenstalt 4.1% 3.9%
Government of Sweden 3.3% 2.7%
Kingdom of Denmark 3.1% 4.6%
Republic of Italy 2.5% 2.9%
Average Annual Total Returns*
- --------------------------------------------------------------------------------
International Balanced International Balanced MorningStar
Fund Composite Benchmark (A) Peer Group+
---- ----------------------- -----------
YTD** -3.97% -0.48% 1.90%
1 Year 4.18 7.00 3.96
3 Years 7.27 7.01 9.21
Since Inception 7.07 6.43 N/A
Top Ten Countries (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of % of
investments investments
United Kingdom 16.2% Australia 7.3%
Japan 12.0% Spain 6.3%
Germany 11.4% Canada 5.7%
France 11.3% Sweden 4.7%
United States 9.7% Italy 3.9%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. There are special risks associated with
international investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
(A) International Balanced Composite Index: 65% Morgan Stanley Capital
International World Index Excluding US, and 35% Salomon Brothers Non-US
Govt. Bond Index excluding US Taxes.
There are special risks associated with international investing, including
currency fluctuations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
21
<PAGE>
Inception: May 2, 1988
International Equity Index Fund Independence International Associates,
Inc. Norman Meltz
The International Equity Index Fund returned 3.89% for the second quarter of
1999 versus the MSCI EAFE--GDP Index return of 3.52%. Year-to-date, the Fund's
return of 5.87% has tracked the GDP Index return of 5.81% quite closely.
Positive tracking this quarter and year-to-date has come largely from the
Malaysian securities the Fund holds. At the end of September 1998 the Malaysian
government imposed currency controls and Morgan Stanley subsequently removed
Malaysia from the Index. The Fund continued to hold its Malaysian equities, as
selling was not a viable option. During the recent quarter, these Malaysian
holdings increased 74%, outpacing the Index by approximately 71%. Though the
Fund's weight in Malaysia totaled less than 1%, the dramatic increase in these
non-index holdings added about 40 basis points of return.
European equity markets delivered flat returns, on average, this quarter.
Measured in U.S. dollars, eight of fifteen markets had positive returns; seven
produced negative numbers. Sweden's 13.4% return led all European markets and
was the only double-digit performer. On the negative side, Ireland fell 11.1%.
In general slow economic growth across Europe dampened investor enthusiasm for
equities.
Pacific region equity markets, on the other hand, performed reasonably well as
a group this quarter as the recovery from the financial crisis in Southeast
Asia continued. Singapore rose 34.0%, Hong Kong increased 23.3 and Japan rose
7.6%. The other five Pacific region equity markets also performed well,
particularly Australia and New Zealand, both up over 7%. Singapore and Hong
Kong each rose about 6%.
A strong U.S. dollar detracted from international stock market returns across
the globe. The Euro, now the currency of ten of the European countries owned by
the Fund and representing over 40% of Fund assets, continued to fall versus the
U.S. dollar. It declined 4.5% this part quarter. Currency weakness in the
Pacific region also reduced returns to a U.S. based investor. In total,
currency returns cost the Fund in excess of 3% this quarter.
[CHART APPEARS HERE]
Historical Fund Return
$10,000
Investment made 6/30/89
(10-year period)
Date International Equities Index Fund MSCI EAFE-GDP Index
---- --------------------------------- -------------------
30-Jun-89 $ 10,000 $ 10,000
31-Jul-89 $ 11,000 $ 11,258
31-Aug-89 $ 10,628 $ 10,754
29-Sep-89 $ 10,989 $ 11,245
31-Oct-89 $ 10,798 $ 10,796
30-Nov-89 $ 11,217 $ 11,341
29-Dec-89 $ 11,611 $ 11,762
31-Jan-90 $ 11,131 $ 11,326
28-Feb-90 $ 10,945 $ 10,538
30-Mar-90 $ 10,998 $ 9,443
30-Apr-90 $ 10,894 $ 9,370
31-May-90 $ 11,759 $ 10,442
29-Jun-90 $ 11,935 $ 10,353
31-Jul-90 $ 12,111 $ 10,501
31-Aug-90 $ 11,011 $ 9,484
28-Sep-90 $ 10,302 $ 8,166
31-Oct-90 $ 10,558 $ 9,440
30-Nov-90 $ 10,634 $ 8,887
31-Dec-90 $ 10,689 $ 9,034
31-Jan-91 $ 10,852 $ 9,328
28-Feb-91 $ 11,490 $ 10,331
28-Mar-91 $ 11,638 $ 9,713
30-Apr-91 $ 11,688 $ 9,812
31-May-91 $ 11,958 $ 9,917
28-Jun-91 $ 11,332 $ 9,191
31-Jul-91 $ 11,894 $ 9,645
30-Aug-91 $ 12,014 $ 9,451
30-Sep-91 $ 12,108 $ 9,987
31-Oct-91 $ 12,315 $ 10,131
27-Nov-91 $ 12,037 $ 9,661
31-Dec-91 $ 13,187 $ 10,163
31-Jan-92 $ 13,155 $ 9,949
28-Feb-92 $ 13,131 $ 9,595
31-Mar-92 $ 12,529 $ 8,965
30-Apr-92 $ 12,494 $ 9,009
29-May-92 $ 12,848 $ 9,615
30-Jun-92 $ 12,604 $ 9,162
31-Jul-92 $ 12,532 $ 8,930
31-Aug-92 $ 12,394 $ 9,494
30-Sep-92 $ 12,350 $ 9,309
30-Oct-92 $ 12,284 $ 8,824
30-Nov-92 $ 12,797 $ 8,909
31-Dec-92 $ 12,970 $ 8,958
29-Jan-93 $ 13,048 $ 8,960
26-Feb-93 $ 12,983 $ 9,233
31-Mar-93 $ 13,414 $ 10,041
30-Apr-93 $ 13,496 $ 10,996
28-May-93 $ 14,182 $ 11,231
30-Jun-93 $ 14,057 $ 11,059
30-Jul-93 $ 14,304 $ 11,448
31-Aug-93 $ 15,105 $ 12,069
30-Sep-93 $ 15,304 $ 11,800
29-Oct-93 $ 16,289 $ 12,166
30-Nov-93 $ 15,680 $ 11,105
31-Dec-93 $ 17,159 $ 11,909
31-Jan-94 $ 17,277 $ 12,919
28-Feb-94 $ 17,076 $ 12,886
31-Mar-94 $ 16,185 $ 12,334
29-Apr-94 $ 16,490 $ 12,860
31-May-94 $ 16,683 $ 12,789
30-Jun-94 $ 16,253 $ 12,972
29-Jul-94 $ 16,626 $ 13,100
31-Aug-94 $ 17,396 $ 13,413
30-Sep-94 $ 17,034 $ 12,993
31-Oct-94 $ 17,376 $ 13,429
30-Nov-94 $ 16,239 $ 12,786
30-Dec-94 $ 16,085 $ 12,870
31-Jan-95 $ 15,186 $ 12,378
28-Feb-95 $ 15,445 $ 12,346
31-Mar-95 $ 16,006 $ 13,119
28-Apr-95 $ 16,488 $ 13,616
31-May-95 $ 16,826 $ 13,457
30-Jun-95 $ 16,664 $ 13,225
31-Jul-95 $ 17,589 $ 14,052
31-Aug-95 $ 17,089 $ 13,519
29-Sep-95 $ 17,331 $ 13,787
31-Oct-95 $ 17,031 $ 13,420
30-Nov-95 $ 17,110 $ 13,797
29-Dec-95 $ 17,374 $ 14,356
31-Jan-96 $ 17,648 $ 14,418
29-Feb-96 $ 17,848 $ 14,471
29-Mar-96 $ 18,019 $ 14,782
30-Apr-96 $ 18,686 $ 15,215
31-May-96 $ 18,496 $ 14,939
28-Jun-96 $ 18,537 $ 15,027
31-Jul-96 $ 17,751 $ 14,591
30-Aug-96 $ 17,890 $ 14,627
30-Sep-96 $ 18,225 $ 15,019
31-Oct-96 $ 18,112 $ 14,869
29-Nov-96 $ 18,922 $ 15,464
31-Dec-96 $ 18,970 $ 15,269
31-Jan-97 $ 18,643 $ 14,738
28-Feb-97 $ 18,713 $ 14,983
31-Mar-97 $ 18,365 $ 15,041
30-Apr-97 $ 18,495 $ 15,124
30-May-97 $ 20,053 $ 16,112
30-Jun-97 $ 21,092 $ 17,005
31-Jul-97 $ 21,755 $ 17,283
29-Aug-97 $ 19,385 $ 15,996
30-Sep-97 $ 20,786 $ 16,896
31-Oct-97 $ 17,969 $ 15,601
28-Nov-97 $ 17,963 $ 15,445
31-Dec-97 $ 18,017 $ 15,584
1-Jan-98 $ 18,030 $ 16,300
27-Feb-98 $ 19,414 $ 17,350
31-Mar-98 $ 20,201 $ 17,888
30-Apr-98 $ 20,742 $ 18,033
29-May-98 $ 20,865 $ 18,294
30-Jun-98 $ 21,118 $ 18,470
31-Jul-98 $ 21,290 $ 18,715
31-Aug-98 $ 18,582 $ 16,253
30-Sep-98 $ 18,004 $ 15,804
30-Oct-98 $ 19,952 $ 17,568
30-Nov-98 $ 20,919 $ 18,484
31-Dec-98 $ 21,768 $ 19,232
29-Jan-99 $ 21,816 $ 19,257
26-Feb-99 $ 21,077 $ 18,656
31-Mar-99 $ 22,183 $ 19,643
30-Apr-99 $ 23,032 $ 20,436
28-May-99 $ 21,916 $ 19,370
30-Jun-99 $ 23,046 $ 20,349
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Nippon Telegraph & Telephone Corp. 2.9% 2.0%
Toyota Motor Corp. 2.4% 2.1%
Deutsche Telekom AG 1.7% 1.4%
Allianz AG 1.3% 1.8%
Bank of Tokyo-Mitsubishi 1.3% 1.0%
Nokia Oyj 1.2% 0.9%
ENI SpA 1.2% 1.4%
Telecom Italia Moblie SpA 1.2% 1.5%
Telecom Italia SpA 1.1% 0.9%
Daimler/Chrysler AG 0.9% 1.0%
Average Annual Total Returns*
- --------------------------------------------------------------------------------
International MSCI EAFE MorningStar
Equity Index Fund -GDP Index Peer Group+
----------------- ---------- -----------
YTD** 5.87% 5.81% 8.88%
1 Year 9.13 10.17 5.75
3 Years 7.53 10.64 10.80
5 Years 7.23 9.42 11.01
10 Years 8.71 7.36 10.19
Top Ten Countries (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of % of
investments investments
Japan 35.3% Spain 3.9%
Germany 13.4% Australia 2.8%
France 10.6% Netherlands 2.7%
United Kingdom 9.0% Hong Kong 2.1%
Italy 8.2% Sweden 1.7%
+ Total returns are for the period ended June 30, 1999, returns represent
past performance, assume reinvestment of all distributions, and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. The performance of the fund on this page
is reported net of Trust level charges (i.e. investment management fees and
operating expenses). It does not reflect expense and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus. There are
special risks associated with international investing, including currency
fluctuations, political and economic instability, foreign taxation and
different accounting standards, as outlined in the current prospectus.
Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
22
<PAGE>
Inception: May 1, 1996
International Opportunities Fund Rowe Price-Fleming International,
Inc. Martin Wade
International stock markets strengthened against a weak currency backdrop in
the second quarter, pushing the MSCI EAFE benchmark up 3% in US$ terms. The
Fund outperformed the benchmark during the quarter with country allocation and
stock selection both small positives.
Country allocation relative to the benchmark was positive largely because
value added in Latin America offset the negative performance in Japan. Latin
American markets, where we are overweight, performed well. The Mexican economy
remained robust relative to its region and Brazil benefited from a stable
currency and falling interest rates. Underweighting Japan, which showed some
signs of economic recovery during the quarter, hurt performance. Within Europe
and Southeast Asia, smaller negatives and positives balanced each other. Stock
selection was a small positive as strong stock selection in Japan, Switzerland
and France, offset weaker performance in the UK and Sweden.
At the end of June, Europe accounted for just under 70% of the fund,
including almost 20% in the UK. We were slightly overweight the index on the
Continent, and underweight the UK. Japan was about 18% of the fund, below the
benchmark. Approximately 7% was invested elsewhere in the Pacific, mostly in
Hong Kong and Australia, above the index's Pacific ex-Japan position. Latin
America represented about 4% of the Fund.
At the end of the second quarter we see international economies and markets
poised for further improvement. Although we anticipate stronger international
growth, abundant capacity outside the US should keep inflation muted. In
contrast, we believe that US growth will moderate under the influence of
higher interest rates. The recovering international regions should be able to
withstand a decline in US demand, and we believe international markets can
continue to rise at a reasonable pace in the coming quarters.
[CHART OF HISTORICAL FUND RETURN APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/96
(Fund Inception Date)
Date MSCI EAFE Index International Opportunities Fund
---- --------------- --------------------------------
Apr 1996 $10,000 $10,000
May 1996 $ 9,818 $10,024
Jun 1996 $ 9,876 $10,129
Jul 1996 $ 9,590 $ 9,820
Aug 1996 $ 9,613 $ 9,971
Sep 1996 $ 9,871 $10,191
Oct 1996 $ 9,773 $10,150
Nov 1996 $10,164 $10,609
Dec 1996 $10,036 $10,672
Jan 1997 $ 9,687 $10,544
Feb 1997 $ 9,847 $10,672
Mar 1997 $ 9,886 $10,659
Apr 1997 $ 9,940 $10,701
May 1997 $10,590 $11,332
Jun 1997 $11,176 $11,796
Jul 1997 $11,359 $12,113
Aug 1997 $10,513 $10,992
Sep 1997 $11,104 $11,719
Oct 1997 $10,253 $10,863
Nov 1997 $10,151 $10,859
Dec 1997 $10,242 $10,880
Jan 1998 $10,713 $11,254
Feb 1998 $11,403 $11,932
Mar 1998 $11,756 $12,346
Apr 1998 $11,852 $12,435
May 1998 $11,797 $12,391
Jun 1998 $11,889 $12,416
Jul 1998 $12,012 $12,560
Aug 1998 $10,527 $10,980
Sep 1998 $10,207 $10,715
Oct 1998 $11,274 $11,681
Nov 1998 $11,854 $12,199
Dec 1998 $12,325 $12,612
Jan 1999 $12,312 $12,484
Feb 1999 $12,051 $12,268
Mar 1999 $12,645 $12,769
Apr 1999 $13,291 $13,241
May 1999 $12,689 $12,623
Jun 1999 $13,303 $13,113
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
National Westminster Bank plc 2.4% 3.0%
SmithKline Beecham plc 1.9% 2.6%
Wolters Kluwer NV - CVA 1.8% 2.4%
Shell Transport & Trading Co. plc1 7% 1.6%
Nestle SA 1.6% 2.0%
Vivendi 1.5% 1.7%
Kingfisher plc 1.4% 1.8%
ING Groep NV 1.4% 1.6%
Glaxo Wellcome plc 1.4% 1.8%
Diageo plc 1.4% 1.6%
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Intl. Opportunities MSCI EAFE MorningStar
Fund Index Peer Group+
---- ----- -----------
YTD** 3.97% 7.94% 8.88%
1 Year 5.61 11.89 5.75
3 Years 8.99 10.44 10.80
Since Inception 8.94 9.43 N/A
Top Ten Countries (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of % of
investments investments
United Kingdom 19.1% Germany 6.6%
Japan 18.7% Italy 4.9%
France 11.3% United States 4.0%
Netherlands 9.2% Sweden 3.9%
Switzerland 6.6% Spain 3.3%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, whenredeemed, may be worth more
or less than their original cost. There are special risks associated with
interntional investing including currency fluctuations, political and
economic instability, foreign taxation and different accounting standards,
as outlined in the current prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
23
<PAGE>
Inception: May 1, 1998
Emerging Markets Equity Fund
Montgomery Asset Management, LLC J. Jimenez & B. Sudweeks
With the exception of a handful of small cap markets, all emerging markets
appreciated during the quarter, helped by a rebound in commodity prices and a
generally improving economic outlook. In contrast to the first quarter, when
Latin America outperformed all other regions, Pacific Rim markets enjoyed the
greatest appreciation, as investors became convinced that the region was
recovering. Double and even triple digit gains in Asian Indices ensured a
strong second quarter performance for the MSCI Emerging Markets Free Index,
which returned 24.4% versus 12.4% for the previous quarter.
The Fund enjoyed terrific absolute results for the quarter of 21.7%, versus a
24.4% return for the MSCI Emerging Markets Free Index. These returns mask an
encouraging improvement in the Fund's relative returns as the quarter
progressed. We attribute this trend to good country allocation decisions and
stock selection, as well as benefits accruing from recent enhancements in the
management of the Fund, namely, a move toward centralized portfolio
construction and trade implementation, and improved risk management measures.
In terms of the Fund positioning, two factors helped performance during the
quarter: the Fund's country allocations and its overweight position in the
outperforming commodities sector. During the quarter the Fund was overweight
in Asia, specifically the strong South Korean and Thai markets. Stock
selections that made a particularly strong contribution to performance
included Hyundai Motors in Korea. Hyundai was added to the Fund mid-quarter
and gained 50% over a six-week period. In Thailand, our positions in Banking
and Finance helped to boost returns. The Fund was underweight in Taiwan, but
overweight in the country's robust technology sector.
In total, 57% of the fund was invested in countries likely to benefit from
the improvement in commodity prices by the end of the quarter. Strong
performers included South Africa's Anglo American Platinum, Posco Steel in
Korea, and Mexican low cost copper producer Groupo Mexico.
[CHART APPEARS HERE]
Historical Fund Return
$10,000
Investment made 5/1/98
(Fund Inception Date)
Date Emerging Markets Equity Fund MSCI Emerging Markets Free Index
---- ---------------------------- --------------------------------
4/30/98 $10,000 $10,000
29-May-98 $ 8,688 $ 8,630
30-Jun-98 $ 7,960 $ 7,724
31-Jul-98 $ 8,533 $ 7,969
31-Aug-98 $ 5,845 $ 5,665
30-Sep-98 $ 6,556 $ 6,024
30-Oct-98 $ 7,081 $ 6,659
30-Nov-98 $ 7,668 $ 7,213
31-Dec-98 $ 7,113 $ 7,108
29-Jan-99 $ 6,934 $ 6,993
26-Feb-99 $ 6,732 $ 7,061
31-Mar-99 $ 7,578 $ 7,992
30-Apr-99 $ 8,290 $ 8,981
28-May-99 $ 7,990 $ 8,929
30-Jun-99 $ 9,228 $ 9,942
Top Ten Holdings (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of six months ago
investments % of investments
Telefonos de Maxico SA - ADR 4.1% 2.2%
Korea Telecom Corp. 3.4% N/A
Korea Electric Power Corp. - ADR 3.1% N/A
Samsung Electronics 3.1% 1.6%
Telecommunicacoes Brasileiras, SA 2.7% 9.6%
Samsung Display Devices Co. 2.6% N/A
Pohang Iron & Steel Co., Ltd. 2.5% 1.6%
Egypt Moblie Phone 2.2% 2.2%
Taiwan Semiconductor 2.2% 1.7%
Manufacturing Co., Ltd. - ADR
Videsh Sanchar Nigam, Ltd. 1.9% 2.1%
Average Annual Total Returns*
- --------------------------------------------------------------------------------
Emerging Markets MSCI Emerging Morningstar
Equity Fund(1) Markets Free Index Peer Group +
---------------- ------------------ ------------
YTD** 29.73% 39.87% 37.30%
1 Year 15.93 28.71 26.89
Since Inception -6.67 -0.50 N/A
Top Ten Countries (as of June 30, 1999)
- --------------------------------------------------------------------------------
% of % of
investments investments
South Korea 18.1% India 6.8%
Mexico 12.9% Turkey 3.8%
Brazil 11.7% Philippines 3.7%
South Africa 9.3% Thailand 3.6%
Taiwan 7.0% Israel 3.4%
* Total returns are for the period ended June 30, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns and principal value of
fund shares will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. International investing entails special
risks as outlined in the prospectus. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
+ Source: MorningStar, Inc. Data as of 6/30/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
** Year-to-date total returns are not annualized.
(1) Returns reflect extra-ordinary capital contribution of $445,000 in June
1999.
24
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Sovereign Emerging International Global Small Cap International Mid Cap
Growth Bond Markets Equity Equity Equity Growth Balanced Growth
---------- --------- -------------- ------------- ------- --------- ------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long term investments at
cost........................ $ 885,212 $828,705 $10,415 $162,084 $15,501 $68,069 $26,555 $136,118
Net unrealized
appreciation/(depreciation)
of investments.............. 343,465 (15,246) 1,236 16,191 1,578 23,792 475 38,467
Short term investments at
market...................... 8,142 63,007 1,201 3,805 615 2,049 953 10,300
---------- -------- ------- -------- ------- ------- ------- --------
Total Investments.......... 1,236,819 876,466 12,852 182,080 17,694 93,910 27,983 184,885
Cash........................ 27 137 2 3 1,015 21
Receivable for:
Investments sold........... 330 110 20 440 2,518
Fund shares sold...........
Interest................... 14,088 242
Dividends.................. 697 55 590 29 4 61 14
Futures contracts daily
variation.................. 83
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts.................. 13 14 102
Other assets...............
---------- -------- ------- -------- ------- ------- ------- --------
TOTAL ASSETS............... 1,237,516 $890,967 $13,044 $182,820 $17,759 $94,357 $29,403 $187,438
LIABILITIES
Payables for:
Investments purchased...... 1,705 3,145 335 7 1,414 58 5,911
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation.................. 2
Unrealized depreciation in
forward foreign currency
contracts.................. 96 239
Other liabilities.......... 157 298 22 115 6 35 39 30
---------- -------- ------- -------- ------- ------- ------- --------
TOTAL LIABILITIES.......... 1,862 3,443 357 213 13 1,449 336 5,941
---------- -------- ------- -------- ------- ------- ------- --------
NET ASSETS.................. $1,235,654 887,524 12,687 182,607 17,746 92,908 29,067 181,497
========== ======== ======= ======== ======= ======= ======= ========
Shares of beneficial
interest outstanding........ 42,617 93,947 1,388 11,187 1,660 6,248 2,760 9,452
---------- -------- ------- -------- ------- ------- ------- --------
Net asset value per share... $ 28.99 $ 9.45 $ 9.14 $ 16.32 $ 10.69 $ 14.87 $ 10.53 $ 19.20
========== ======== ======= ======== ======= ======= ======= ========
Composition of net assets:
Capital Paid in............ 763,411 910,521 11,764 166,786 16,231 64,521 28,197 128,703
Accumulated net realized
gain (loss) on investments. 128,740 (7,924) (290) (311) (82) 4,902 1,387 14,812
Undistributed net
investment income.......... 38 178 (9) (173) 6 (307) (829) (485)
Net unrealized
appreciation/(depreciation)
of:
Investments................ 343,465 (15,246) 1,236 16,191 1,578 23,792 475 38,467
Foreign currency
translation................ (14) 95 13 (163)
Futures contracts.......... (5) 19
---------- -------- ------- -------- ------- ------- ------- --------
Net Assets.................. $1,235,654 $887,524 $12,687 $182,607 $17,746 $92,908 $29,067 $181,497
========== ======== ======= ======== ======= ======= ======= ========
</TABLE>
See notes to financial statements.
25
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Money Mid Cap Small/Mid Cap Bond Small/Mid Cap Real Estate Growth &
Value Market Value Growth Index CORE Equity Income
--------- -------- -------- ------------- ------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long term investments at
cost........................ $130,160 $ 93,777 $173,422 $32,652 $5,339 $136,042 $2,811,549
Net unrealized appreciation
(depreciation) of
investments................. 22,959 5,977 15,073 (1,260) 736 10,295 1,288,269
Short term investments at
market...................... 6,285 $357,508 552 8,278 41 200 20,350
-------- -------- -------- -------- ------- ------ -------- ----------
Total Investments.......... 159,404 357,508 100,306 196,773 31,433 6,275 146,337 4,120,168
Cash........................ 167 115 50
Receivable for:
Investments sold........... 174 1,145 263,780
Fund Shares sold........... 326
Interest................... 9 545
Dividends.................. 287 92 53 4 1,041 2,874
Futures contracts daily
variation.................. 4
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts..................
Other Assets...............
-------- -------- -------- -------- ------- ------ -------- ----------
TOTAL ASSETS............... $160,041 $357,508 $100,724 $198,086 $31,978 $6,333 $147,378 $4,386,822
LIABILITIES
Payables for:
Investments purchased...... 166 512 2,624 263,074
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation..................
Unrealized depreciation in
forward foreign currency
contracts..................
Other liabilities.......... 24 100 13 46 19 1 39 543
-------- -------- -------- -------- ------- ------ -------- ----------
TOTAL LIABILITIES.......... 190 100 525 2,670 19 1 39 263,617
-------- -------- -------- -------- ------- ------ -------- ----------
NET ASSETS.................. 159,851 357,408 100,199 195,416 31,959 6,332 147,339 4,123,205
======== ======== ======== ======== ======= ====== ======== ==========
Shares of beneficial
interest outstanding........ 10,270 35,741 7,437 11,112 3,321 645 11,556 190,619
-------- -------- -------- -------- ------- ------ -------- ----------
Net asset value per share... $ 15.56 $ 10.00 $ 13.47 $ 17.59 $ 9.62 $ 9.81 $ 12.75 $ 21.63
======== ======== ======== ======== ======= ====== ======== ==========
Composition of net assets:
Capital Paid in............ 133,639 357,408 91,973 154,151 33,215 5,570 140,803 2,598,037
Accumulated net realized
gain (loss) on investments. 3,218 2,249 26,492 4 12 (4,986) 235,417
Undistributed net
investment income.......... 35 (300) 0 6 1,227 1,482
Net unrealized
appreciation/(depreciation)
of:
Investments................ 22,959 5,977 15,073 (1,260) 736 10,295 1,288,269
Foreign currency
translation................
Futures contracts.......... 8
-------- -------- -------- -------- ------- ------ -------- ----------
Net Assets.................. $159,851 $357,408 $100,199 $195,416 $31,959 $6,332 $147,339 $4,123,205
======== ======== ======== ======== ======= ====== ======== ==========
</TABLE>
See notes to financial statements.
26
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- ------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term Small Cap International Equity High Yield Global
Managed Bond Value Opportunities Index Bond Bond
---------- ---------- --------- ------------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long term investments at
cost........................ $2,819,394 $68,166 $66,847 $59,028 $268,031 $17,703 $70,688
Net unrealized appreciation
(depreciation) of
investments................. 566,580 (1,052) 3,349 6,238 70,141 (791) (2,188)
Short term investments at
market...................... 344,569 2,771 4,057 1,607 793 225 13,664
---------- ------- ------- ------- -------- ------- -------
Total Investments.......... 3,730,543 69,885 74,253 66,873 338,965 17,137 82,164
Cash........................ 4,164 1,197 5,760
Receivable for:
Investments sold........... 28,926 8,630 98 1,792 985
Fund Shares sold...........
Interest................... 16,078 1,128 376 988
Dividends.................. 1,602 61 213 321
Futures contracts daily
variation.................. 250
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts.................. 19,608 1,063
Other Assets...............
---------- ------- ------- ------- -------- ------- -------
TOTAL ASSETS............... $3,800,921 $71,013 $82,944 $68,381 $341,328 $17,513 $90,960
LIABILITIES
Payables for:
Investments purchased...... 349,485 12,613 152 1,331 33 18,135
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation.................. 440
Unrealized depreciation in
forward foreign currency
contracts.................. 12,535 3
Other liabilities.......... 570 67 15 53 83 12 40
---------- ------- ------- ------- -------- ------- -------
TOTAL LIABILITIES.......... 363,030 67 12,628 205 1,414 45 18,178
---------- ------- ------- ------- -------- ------- -------
NET ASSETS.................. 3,437,891 70,946 70,316 68,176 339,914 17,468 72,782
========== ======= ======= ======= ======== ======= =======
Shares of beneficial
interest outstanding........ 210,750 7,222 5,814 5,407 17,201 1,909 7,182
---------- ------- ------- ------- -------- ------- -------
Net asset value per share... $ 16.31 $ 9.82 $ 12.09 $ 12.61 $ 19.76 $ 9.15 $ 10.13
========== ======= ======= ======= ======== ======= =======
Composition of net assets:
Capital Paid in............ 2,689,026 72,861 65,217 59,644 262,008 18,235 73,377
Accumulated net realized
gain (loss) on investments. 168,511 (950) 1,702 2,267 7,217 24 665
Undistributed net
investment income.......... 4,698 87 48 52 85 (147)
Net unrealized
appreciation/(depreciation)
of:
Investments................ 566,580 (1,052) 3,349 6,238 70,141 (791) (2,188)
Foreign currency
translation................ 6,906 (25) 1,075
Futures contracts.......... 2,170 463
---------- ------- ------- ------- -------- ------- -------
Net Assets.................. $3,437,891 $70,946 $70,316 $68,176 $339,914 $17,468 $72,782
========== ======= ======= ======= ======== ======= =======
</TABLE>
See notes to financial statements.
27
<PAGE>
STATEMENT OF OPERATIONS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
(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................... $ 352 $ 32,192 $ 29 $ 82 $ 20 $ 45 $ 375 $ 141
Dividends (Note B)......... 3,982 101 1,860 157 24 199 62
-------- -------- ------ ------- ------ ------- ------- -------
4,334 32,192 130 1,942 177 69 574 203
Expenses
Investment advisory fees
(Note C)................... 2,119 1,117 60 146 72 301 125 544
Auditors fees.............. 34 28 6 10 6 8 7 8
Custodian fees............. 64 71 37 115 42 35 59 38
Fidelity bond fees......... 0 0 1 0
Legal fees................. 10 8 1 1 1
Printing & mailing fees.... 175 142 12 42 13 33 15 25
Trustees fees.............. 5 4 2 3 3 2 2 3
Other fees................. 1 1 3 0
-------- -------- ------ ------- ------ ------- ------- -------
2,408 1,371 117 320 136 380 209 619
Less expenses reimbursed
(Note C)................... 48 48 0 55 0
-------- -------- ------ ------- ------ ------- ------- -------
2,408 1,371 69 320 88 380 154 619
-------- -------- ------ ------- ------ ------- ------- -------
Net Investment
Income/(Loss)............... 1,926 30,821 61 1,622 89 (311) 420 (416)
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 128,740 (7,924) (290) (119) (82) 4,902 1,387 14,812
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ (6,620) (36,094) 2,548 8,820 1,402 6,913 (2,316) 16,672
Foreign currency
translation................ (14) (15) 13 (701) (33)
-------- -------- ------ ------- ------ ------- ------- -------
Net realized and unrealized
gain/(loss) on investments. 122,120 (44,018) 2,244 8,686 1,333 11,815 (1,630) 31,451
-------- -------- ------ ------- ------ ------- ------- -------
Net increase/(decrease) in
net assets resulting from
operations................. $124,046 $(13,197) $2,305 $10,308 $1,422 $11,504 $(1,210) $31,035
======== ======== ====== ======= ====== ======= ======= =======
</TABLE>
See notes to financial statements.
28
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Money Mid Cap Small/Mid Cap Bond Small/Mid Cap Real Estate Growth &
Value Market Value Growth Index CORE Equity Income
--------- ------ ------- ------------- ------- ------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 180 $9,235 $ 50 $158 $ 1,000 $ 1 $ 26 $ 890
Dividends (Note B)......... 1,721 -- 748 328 31 4,681 23,572
------- ------ ------ ------- ------- ---- ------- --------
1,901 9,235 798 486 1,000 32 4,707 24,462
Expenses
Investment advisory fees
(Note C)................... 500 458 368 696 22 21 434 4,755
Auditors fees.............. 9 15 8 11 7 6 10 96
Custodian fees............. 39 32 28 37 23 34 29 148
Fidelity bond fees......... 1
Legal fees................. 1 4 1 1 1 34
Printing & mailing fees.... 29 64 24 38 15 12 32 542
Trustees fees.............. 3 3 3 3 3 2 3 10
Other fees................. 2
------- ------ ------ ------- ------- ---- ------- --------
581 577 432 786 70 75 509 5,587
Less expenses reimbursed
(Note C)................... 19 49
------- ------ ------ ------- ------- ---- ------- --------
581 577 432 786 51 26 509 5,587
------- ------ ------ ------- ------- ---- ------- --------
Net Investment Income....... 1,320 8,658 366 (300) 949 6 4,198 18,875
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain (loss) on
sales of investments....... 3,218 2,249 26,492 4 12 (4,986) 235,417
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 11,294 6,931 (7,849) (1,718) 480 9,016 168,971
Foreign currency
translation ...............
------- ------ ------ ------- ------- ---- ------- --------
Net realized and unrealized
gain on investments........ 14,512 9,180 18,643 (1,714) 492 4,030 404,388
------- ------ ------ ------- ------- ---- ------- --------
Net increase in net assets
resulting from operations.. $15,832 $8,658 $9,546 $18,343 $ (765) $498 $ 8,228 $423,263
======= ====== ====== ======= ======= ==== ======= ========
</TABLE>
See notes to financial statements.
29
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Short-Term Small Cap International Equity High Yield Global
Managed Bond Value Opportunities Index Bond Bond
-------- ---------- --------- ------------- ------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 38,412 $2,539 $ 42 $ 64 $ 10 $700 $ 2,035
Dividends (Note B)......... 12,942 -- 385 777 2071 6
-------- ------ ------ ------ ------- ---- -------
51,354 2,539 427 841 2,081 706 2,035
Expenses
Investment advisory fees
(Note C)................... 5,324 113 247 286 194 53 240
Auditors fees.............. 87 8 7 7 12 6 7
Custodian fees............. 164 25 32 61 70 28 31
Fidelity bond fees.........
Legal fees................. 30 1 1 2 1
Printing & mailing fees.... 485 22 19 20 46 13 27
Trustees fees.............. 9 2 3 3 3 3 3
Other fees................. 2 5
-------- ------ ------ ------ ------- ---- -------
6,101 171 308 378 332 103 309
Less expenses reimbursed
(Note C)................... 27 332 34
-------- ------ ------ ------ ------- ---- -------
6,101 171 308 351 0 69 309
-------- ------ ------ ------ ------- ---- -------
Net Investment Income....... 45,253 2,368 119 490 2,081 637 1,726
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 168,511 (950) 1,702 2,267 7,217 24 665
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ (38,307) (744) 1,072 (215) 24,350 (225) (4,795)
Foreign currency
translation ............... 11,781 (27) 935
-------- ------ ------ ------ ------- ---- -------
Net realized and unrealized
gain on investments........ 141,985 (1,694) 2,774 2,025 31,567 (201) (3,195)
-------- ------ ------ ------ ------- ---- -------
Net increase in net assets
resulting from operations.. $187,238 $ 674 $2,893 $2,515 $33,648 $436 $(1,469)
======== ====== ====== ====== ======= ==== =======
</TABLE>
See notes to financial statements.
30
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Growth Sovereign Bond Emerging Markets Equity
------------------------- ------------------------- ----------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month Period from
Period Ended Year Ended Period Ended Year Ended Period Ended May 1, 1998(*)
June 30, December 31, June 30, December 31, June 30, to December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 1,926 $ 5,356 $ 30,821 $ 58,240 $ 61 $ 27
Net realized
gain (loss) on
sales of
investments..... 128,740 104,660 (7,924) 12,121 (290) (1,644)
Change in net
unrealized
appreciation/
(depreciation)
of investments.. (6,620) 198,191 (36,094) (3,300) 2,548 (1,312)
Foreign currency
translation..... (14)
---------- ---------- -------- -------- ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations...... 124,046 308,207 (13,197) 67,061 2,305 (2,929)
Distributions to
Shareholders
From:
Net investment
income.......... (1,926) (5,356) (30,821) (58,240) (61) (16)
Realized gain on
investments..... (104,621) (12,168)
Capital Paid in. (39) (11)
---------- ---------- -------- -------- ------- -------
Decrease in net
assets resulting
from
distributions... (1,926) (110,016) (30,821) (70,408) (61) (27)
Capital
Contribution.... 445
Trust Share
Transactions
Proceeds from
shares sold..... 84,898 132,463 54,146 120,694 6,551 11,982
Distributions
reinvested...... 1,926 110,016 30,821 70,408 61 27
Payment for
shares redeemed. (100,054) (68,304) (60,546) (84,404) (3,924) (1,743)
---------- ---------- -------- -------- ------- -------
Increase/(decrease)
from trust share
transactions.... (13,230) 174,175 24,421 106,698 2,688 10,266
---------- ---------- -------- -------- ------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 108,890 372,366 (19,597) 103,351 5,377 7,310
NET ASSETS
Beginning of
Period.......... 1,126,764 754,398 907,121 803,770 7,310
---------- ---------- -------- -------- ------- -------
End of Period... $1,235,654 $1,126,764 $887,524 $907,121 $12,687 $ 7,310
========== ========== ======== ======== ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 3,115 5,424 5,542 12,001 836 1,271
Reinvested...... 70 4,217 3,188 7,044 7 4
Redeemed........ (3,584) (2,861) (6,212) (8,405) (487) (243)
---------- ---------- -------- -------- ------- -------
Net
increase/(decrease)
in shares
outstanding...... (399) 6,780 2,518 10,640 356 1,032
========== ========== ======== ======== ======= =======
<CAPTION>
International Equity Index Global Equity
--------------------------------- ----------------------------
Unaudited
Unaudited Six-Month Period from
Six-Month Year Ended Period Ended May 1, 1998(*)
Period Ended December 31, June 30, to December 31,
June 30, 1999 1998 1999 1998
---------------- ---------------- ------------ ---------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 1,622 $ 2,359 $ 89 $ 106
Net realized
gain (loss) on
sales of
investments..... (311) 24,001 (82) (376)
Change in net
unrealized
appreciation/
(depreciation)
of investments.. 8,820 4,183 1,402 176
Foreign currency
translation..... (15) 107 13
---------------- ---------------- ------------ ---------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 10,116 30,650 1,422 (94)
Distributions to
Shareholders
From:
Net investment
income.......... (1,622) (2,321) (80) (99)
Realized gain on
investments..... (24,366)
Capital Paid in. (7)
---------------- ---------------- ------------ ---------------
Decrease in net
assets resulting
from
distributions... (1,622) (26,687) (80) (106)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 17,951 24,581 1,442 17,755
Distributions
reinvested...... 1,622 26,687 80 106
Payment for
shares redeemed. (18,597) (34,453) (399) (2,380)
---------------- ---------------- ------------ ---------------
Increase/(decrease)
from trust share
transactions.... 976 16,815 1,123 15,481
---------------- ---------------- ------------ ---------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 9,470 20,778 2,465 15,281
NET ASSETS
Beginning of
Period.......... 173,137 152,359 15,281
---------------- ---------------- ------------ ---------------
End of Period... $ 182,607 $ 173,137 $17,746 $15,281
================ ================ ============ ===============
Analysis of Trust
Share
Transactions:
Sold............ 1,131 1,470 144 1,800
Reinvested...... 102 1,703 8 11
Redeemed........ (1,173) (2,070) (40) (263)
---------------- ---------------- ------------ ---------------
Net
increase/(decrease)
in shares
outstanding...... 60 1,103 112 1,548
================ ================ ============ ===============
</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
Small Cap Growth Balanced Growth Value
------------------------- ------------------------- ------------------------- -------------------------
Unaudited Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ (311) $ (363) $ 420 $ 887 $ (416) $ (383) $ 1,320 $ 2,071
Net realized
gain/(loss) on
sales of
investments..... 4,902 (271) 1,387 609 14,812 8,102 3,218 4,295
Change in net
unrealized
appreciation
(depreciation)
of investments.. 6,913 10,212 (2,316) 2,412 16,672 15,541 11,294 2,592
Foreign Currency
Translation..... (701) 660 (33) 75
------- -------- ------- ------- -------- -------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... 11,504 9,578 (1,210) 4,568 31,035 23,335 15,832 8,958
Distributions to
Shareholders
From:
Net investment
income.......... (420) (887) (1,320) (2,052)
Realized gain on
investments..... (1,103) (7,468) (4,289)
Capital Paid in. (24) (833) (21)
------- -------- ------- ------- -------- -------- -------- --------
Decrease in net
assets resulting
from
distributions... (420) (2,014) (8,301) (1,320) (6,362)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 18,063 31,182 3,681 6,272 66,008 40,746 32,388 53,200
Distributions
reinvested...... 420 2,014 8,301 1,320 6,362
Payment for
shares redeemed. (11,508) (14,672) (3,820) (5,844) (9,631) (10,231) (11,734) (12,062)
------- -------- ------- ------- -------- -------- -------- --------
Increase
(decrease) from
trust share
transactions.... 6,555 16,510 281 2,442 56,377 38,816 21,974 47,500
------- -------- ------- ------- -------- -------- -------- --------
NET
INCREASE/(DECREASE)
IN NET
ASSETS........... 18,059 26,088 (1,349) 4,996 87,412 53,850 36,486 50,096
NET ASSETS
Beginning of
Period.......... 74,849 48,761 30,416 25,420 94,085 40,235 123,365 73,269
------- -------- ------- ------- -------- -------- -------- --------
End of Period... $92,908 $ 74,849 $29,067 $30,416 $181,497 $ 94,085 $159,851 $123,365
======= ======== ======= ======= ======== ======== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 1,349 2,779 337 581 3,816 3,075 2,196 3,809
Reinvested...... 39 184 549 91 455
Redeemed........ (864) (1,314) (350) (545) (588) (774) (816) (864)
------- -------- ------- ------- -------- -------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 485 1,465 26 220 3,228 2,850 1,471 3,400
======= ======== ======= ======= ======== ======== ======== ========
<CAPTION>
Money Market
-------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December 31,
1999 1998
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 8,658 $ 15,838
Net realized
gain/(loss) on
sales of
investments.....
Change in net
unrealized
appreciation
(depreciation)
of investments..
Foreign Currency
Translation.....
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 8,658 15,838
Distributions to
Shareholders
From:
Net investment
income.......... (8,658) (15,838)
Realized gain on
investments.....
Capital Paid in.
------------ ------------
Decrease in net
assets resulting
from
distributions... (8,658) (15,838)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 314,233 386,221
Distributions
reinvested...... 8,658 15,838
Payment for
shares redeemed. (360,678) (236,307)
------------ ------------
Increase
(decrease) from
trust share
transactions.... (37,787) 165,752
------------ ------------
NET
INCREASE/(DECREASE)
IN NET
ASSETS........... (37,787) 165,752
NET ASSETS
Beginning of
Period.......... 395,195 229,443
------------ ------------
End of Period... $ 357,408 $ 395,195
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 31,423 38,622
Reinvested...... 866 1,584
Redeemed........ (36,067) (23,631)
------------ ------------
Net
increase/(decrease)
in shares
outstanding...... (3,778) 16,575
============ ============
</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>
Mid Cap Value Small/Mid Cap Growth Bond Index
------------------------- ------------------------- ----------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month Period from May
Period Ended Year Ended Period Ended Year Ended Period Ended 1, 1998(*)
June 30, December 31, June 30, December 31, June 30, to December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 366 $ 820 $ (300) $ (217) $ 949 $ 1,089
Net realized
gain/(loss) on
sales of
investments..... 2,249 (8,690) 26,492 2,111 4 267
Change in net
unrealized
appreciation
(depreciation)
of investments.. 6,931 (4,194) (7,849) 8,644 (1,718 458
Foreign Currency
Translation.....
-------- -------- -------- -------- ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations...... 9,546 (12,064) 18,343 10,538 (765) 1,814
Distributions to
Shareholders
From:
Net investment
income.......... (366) (820) (949) (1,089)
Realized gain on
investments..... (3,671) (267)
Capital Paid in.
-------- -------- -------- -------- ------- -------
Decrease in net
assets resulting
from
distributions... (366) (820) (3,671) (949) (1,356)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 16,110 63,576 10,273 18,908 5,766 26,269
Distributions
reinvested...... 366 820 3,671 949 1,356
Payment for
shares redeemed. (20,277) (21,665) (26,532) (49,726) (1,043) (82)
-------- -------- -------- -------- ------- -------
Increase/(decrease)
from trust share
transactions.... (3,801) 42,731 (16,259) (27,147) 5,672 27,543
-------- -------- -------- -------- ------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 5,379 29,847 2,084 (20,280) 3,958 28,001
NET ASSETS
Beginning of
Period.......... 94,820 64,973 193,332 213,612 28,001
-------- -------- -------- -------- ------- -------
End of Period... $100,199 $ 94,820 $195,416 $193,332 $31,959 $28,001
======== ======== ======== ======== ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 1,297 4,722 630 1,216 582 2,623
Reinvested...... 30 66 0 230 96 133
Redeemed........ (1,671) (1,693) (1,647) (3,201) (105) (8)
-------- -------- -------- -------- ------- -------
Net
increase/(decrease)
in shares
outstanding...... (344) 3,095 (1,017) (1,755) 573 2,748
======== ======== ======== ======== ======= =======
<CAPTION>
Small/Mid Cap CORE Real Estate Equity
---------------------------- -------------------------
Unaudited Unaudited
Six-Month Period from Six-Month
Period Ended May 1, 1998(*) Period Ended Year Ended
June 30, to December 31, June 30, December 31,
1999 1998 1999 1998
------------ --------------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 6 $ 0 $ 4,198 $ 9,787
Net realized
gain/(loss) on
sales of
investments..... 12 (750) (4,986) 1,614
Change in net
unrealized
appreciation
(depreciation)
of investments.. 480 264 9,016 (44,965)
Foreign Currency
Translation.....
------------ --------------- ------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 498 (486) 8,228 (33,564)
Distributions to
Shareholders
From:
Net investment
income.......... (6) (5,079) (8,848)
Realized gain on
investments..... (1,695)
Capital Paid in. (58)
------------ --------------- ------------ ------------
Decrease in net
assets resulting
from
distributions... (5,079) (10,601)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 1,595 6,188 9,875 22,171
Distributions
reinvested...... 0 -- 5,079 10,601
Payment for
shares redeemed. (776) (687) (23,553) (39,949)
------------ --------------- ------------ ------------
Increase/(decrease)
from trust share
transactions.... 819 5,501 (8,599) (7,177)
------------ --------------- ------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 1,317 5,015 (5,450) (51,342)
NET ASSETS
Beginning of
Period.......... 5,015 152,789 204,131
------------ --------------- ------------ ------------
End of Period... $6,332 $5,015 $147,339 $152,789
============ =============== ============ ============
Analysis of Trust
Share
Transactions:
Sold............ 174 636 806 1,549
Reinvested...... 418 778
Redeemed........ (85) (80) (1,931) (2,894)
------------ --------------- ------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 89 556 (707) (567)
============ =============== ============ ============
</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>
Growth & Income Managed Short-Term Bond
------------------------- ------------------------- -------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 18,875 $ 39,405 $ 45,253 $ 90,312 $ 2,368 $ 3,965
Net realized
gain/(loss) on
sales of
investments..... 235,417 320,993 168,511 215,053 (950) (82)
Change in net
unrealized
appreciation/(depreciation)
of investments.. 168,971 486,604 (38,307) 261,761 (744) (325)
Foreign
currency
translation..... 11,781 (4,875)
---------- ---------- ---------- ---------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... 423,263 847,002 187,238 562,251 674 3,558
Distributions to
Shareholders
From:
Net investment
income.......... (18,875) (39,405) (45,253) (90,312) (2,368) (3,946)
Realized gain on
investments..... (320,993) (212,457)
Capital Paid in. (10,444)
---------- ---------- ---------- ---------- -------- --------
Decrease in net
assets
resulting from
distributions... (18,875) (360,398) (45,253) (313,213) (2,368) (3,946)
Capital
Contribution....
Trust Share
Transactions:
Proceeds from
shares sold..... 177,400 265,420 172,945 187,045 21,596 48,539
Distributions
reinvested...... 18,875 360,398 45,253 313,213 2,368 3,946
Payment for
shares redeemed. (148,243) (227,601) (224,202) (247,513) (28,518) (26,023)
---------- ---------- ---------- ---------- -------- --------
Increase
(decrease) from
trust share
transactions.... 48,032 398,217 (6,004) 252,745 (4,554) 26,462
---------- ---------- ---------- ---------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 452,420 884,821 135,981 501,783 (6,248) 26,074
NET ASSETS
Beginning of
Period.......... 3,670,785 2,785,964 3,301,910 2,800,127 77,194 51,120
---------- ---------- ---------- ---------- -------- --------
End of Period... $4,123,205 $3,670,785 $3,437,891 $3,301,910 $ 70,946 $ 77,194
========== ========== ========== ========== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 8,675 14,254 10,809 12,059 2,163 4,790
Reinvested...... 929 18,597 2,856 20,147 239 390
Redeemed........ (7,304) (12,305) (14,086) (16,174) (2,862) (2,568)
---------- ---------- ---------- ---------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 2,300 20,546 (421) 16,032 (460) 2,612
========== ========== ========== ========== ======== ========
<CAPTION>
International
Small Cap Value Opportunities
------------------------- -------------------------
Unaudited Unaudited
Six-Month Six-Month
Period Ended Year Ended Period Ended Year Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 119 $ 352 $ 490 $ 435
Net realized
gain/(loss) on
sales of
investments..... 1,702 (4,544) 2,267 (303)
Change in net
unrealized
appreciation/(depreciation)
of investments.. 1,072 253 (215) 6,179
Foreign
currency
translation..... (27) 12
------------ ------------ ------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 2,893 (3,939) 2,515 6,323
Distributions to
Shareholders
From:
Net investment
income.......... (119) (352) (490) (416)
Realized gain on
investments.....
Capital Paid in.
------------ ------------ ------------ ------------
Decrease in net
assets
resulting from
distributions... (119) (352) (490) (416)
Capital
Contribution....
Trust Share
Transactions:
Proceeds from
shares sold..... 12,962 35,658 17,558 41,865
Distributions
reinvested...... 119 352 490 416
Payment for
shares redeemed. (9,634) (10,885) (16,147) (14,569)
------------ ------------ ------------ ------------
Increase
(decrease) from
trust share
transactions.... 3,447 25,125 1,901 27,712
------------ ------------ ------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 6,221 20,834 3,926 33,619
NET ASSETS
Beginning of
Period.......... 64,095 43,261 64,250 30,631
------------ ------------ ------------ ------------
End of Period... $70,316 $ 64,095 $ 68,176 $ 64,250
============ ============ ============ ============
Analysis of Trust
Share
Transactions:
Sold............ 1,152 2,952 1,429 3,600
Reinvested...... 11 31 39 36
Redeemed........ (879) (940) (1,322) (1,258)
------------ ------------ ------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 284 2,043 146 2,378
============ ============ ============ ============
</TABLE>
See notes to financial statements.
34
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Equity Index High Yield Bond Global Bond
------------------------- ---------------------------- -------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Period from Six-Month
Period Ended Year Ended Period Ended May 1, 1998(*) Period Ended Year Ended
June 30, December 31, June 30, to December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ --------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
From Operations
Net investment income.. $ 2,081 $ 2,567 $ 637 $ 565 $ 1,726 $ 2,456
Net realized gain
(loss) on sales of
investments............ 7,217 3,458 24 7 665 (559)
Change in net
unrealized appreciation
(depreciation) of
investments............ 24,350 34,583 (225) (566) (4,795) 2,172
Foreign Currency
Translation............ 0 935 21
-------- -------- ------- ------- -------- --------
Net increase (decrease)
in net assets resulting
from operations........ 33,648 40,608 436 6 (1,469) 4,090
Distributions to
Shareholders From:
Net investment income.. (2,081) (2,483) (637) (565) (1,726) (1,387)
Realized gain on
investments............ (3,661) (7) (534)
Capital Paid in........ (891)
-------- -------- ------- ------- -------- --------
Decrease in net assets
resulting from
distributions.......... (2,081) (6,144) (637) (572) (1,726) (2,812)
Capital Contribution...
Trust Share Transactions
Proceeds from shares
sold................... 102,230 117,380 6,163 16,627 20,726 45,716
Distributions
reinvested............. 2,081 6,144 637 572 1,726 2,812
Payment for shares
redeemed............... (28,542) (26,800) (3,920) (1,844) (13,266) (11,662)
-------- -------- ------- ------- -------- --------
Increase (decrease)
from trust share
transactions........... 75,769 96,724 2,880 15,355 9,186 36,866
-------- -------- ------- ------- -------- --------
NET INCREASE (DECREASE)
IN NET ASSETS........... 107,336 131,188 2,679 14,789 5,991 38,144
NET ASSETS
Beginning of Period.... 232,578 101,390 14,789 0 66,791 28,647
-------- -------- ------- ------- -------- --------
End of Period.......... 339,914 232,578 17,468 14,789 72,782 66,791
======== ======== ======= ======= ======== ========
Analysis of Trust Share
Transactions:
Sold................... 5,479 7,345 657 1,741 1,981 4,340
Reinvested............. 111 363 68 61 166 266
Redeemed............... (1,528) (1,703) (418) (200) (1,266) (1,102)
-------- -------- ------- ------- -------- --------
Net increase (decrease)
in shares outstanding... 4,062 6,005 307 1,602 881 3,504
======== ======== ======= ======= ======== ========
</TABLE>
(*) Commencement of Operations
See notes to financial statements.
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 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
Unaudited Period
Ended
June 30, 1999... $26.19 $0.04 $2.80 $2.84 $(0.04) $ -- $ -- $(0.04)
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)
- --------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Unaudited Period
Ended
June 30, 1999... 9.92 0.33 (0.47) (0.14) (0.33) -- -- (0.33)
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)
- --------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Equity
Unaudited Period
Ended
June 30, 1999... 7.09 0.05 2.05 2.10 (0.05) -- -- (0.05)
Period from May
1, to December
31, 1998 (c).... 10.00 0.03 (2.91) (2.88) (0.03) -- (0.01) (0.03)
- --------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Unaudited Period
Ended
June 30, 1999... 15.56 0.15 0.76 0.91 (0.15) -- -- (0.15)
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)
- --------------------------------------------------------------------------------------------------------------------------
Global Equity
Unaudited Period
Ended
June 30, 1999... 9.87 0.06 0.81 0.87 (0.05) -- -- (0.05)
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
Unaudited Period
Ended
June 30, 1999... $28.99 42,617 10.87%(e) $1,235,654 0.41%(d) 0.33%(d) 37.42%
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%
- --------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Unaudited Period
Ended
June 30, 1999... 9.45 93,947 (1.46)%(e) 887,524 0.30%(d) 6.84%(d) 66.07%
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%
- --------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Equity
Unaudited Period
Ended
June 30, 1999... 9.14 1,388 29.73%(e)(1) 12,687 1.47%(d)(i) 1.30%(d) 74.53%(e)
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
Unaudited Period
Ended
June 30, 1999... 16.32 11,187 5.87%(e) 182,607 0.36%(d) 1.84%(d) 2.90%
Year Ended
December 31,
1998............ 15.56 11,127 20.82% 173,137 0.56% 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%
- --------------------------------------------------------------------------------------------------------------------------
Global Equity
Unaudited Period
Ended
June 30, 1999... 10.69 1,660 8.82%(e) 17,746 1.09%(d)(w) 1.10%(d) 24.39%(e)
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>
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>
Small Cap Growth
Unaudited Period
Ended
June 30, 1999... $12.99 $(0.05) $ 1.93 $ 1.88 $ -- $ -- $ -- $ --
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
Unaudited Period
Ended
June 30, 1999... 11.12 0.15 (0.59) (0.44) (0.15) -- -- (0.15)
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
Unaudited Period
Ended
June 30, 1999... 15.12 (0.17) 4.25 4.08 -- -- -- --
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
Unaudited Period
Ended
June 30, 1999... 14.02 0.14 1.54 1.68 (0.14) -- -- (0.14)
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
Unaudited Period
Ended
June 30, 1999... $14.87 6,248 14.49%(e) $ 92,908 0.94%(k)(d) (0.77)%(d) 54.79%
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
Unaudited Period
Ended
June 30, 1999... 10.53 2,760 (3.97)%(e) 29,067 1.04%(l)(d) 2.85%(d) 55.77%
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
Unaudited Period
Ended
June 30, 1999... 19.20 9,452 27.03%(e) 181,497 0.95%(m)(d) (0.64)%(d) 62.54%
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
Unaudited Period
Ended
June 30, 1999... 15.56 10,270 12.08%(e) 159,851 0.85%(n)(d) 1.94%(d) 14.61%
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>
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
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
Unaudited Period
Ended
June 30, 1999... $10.00 $ 0.23 $ 0.00 $ 0.23 $(0.23) $ -- $ -- $(0.23)
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)
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Unaudited Period
Ended
June 30, 1999... 12.19 0.05 1.28 1.33 (0.05) -- -- (0.05)
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)
- --------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap Growth
Unaudited Period
Ended
June 30, 1999... 15.94 (0.03) 1.68 1.65 -- -- -- --
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)
- --------------------------------------------------------------------------------------------------------------------------
<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
Unaudited Period
Ended
June 30, 1999... $10.00 35,741 2.36%(e) $357,408 0.31%(d) 4.68%(d) --
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% --
- --------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Unaudited Period
Ended
June 30, 1999... 13.47 7,437 11.01%(e) 100,199 0.93%(o)(d) 0.79%(d) 75.00%
Year Ended
December 31,
1998............ 12.19 7,781 (11.33)% 94,820 0.96%(o) 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)
- --------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap Growth
Unaudited Period
Ended
June 30, 1999... 17.59 11,112 10.33%(e) 195,416 0.84%(d) (0.32)%(d) 138.37%
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%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
- --------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ -----------------------------------------------------
Net Realized
Net Asset and Total Distribution Distribution Distributions Net Asset
Value at Net Unrealized From From Net From Net From Value at
Beginning Investment Gain (Loss) on Investment Investment Gains on Capital Total End
of Period Income Investments(a) Operations Income Investments Paid in Distributions of Period
--------- ---------- -------------- ---------- ------------ ------------ ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Bond Index
Unaudited Period
Ended
June 30, 1999... $10.19 $0.31 $(0.57) $(0.26) $(0.31) $ -- $ -- $(0.31) $9.62
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
Unaudited Period
Ended
June 30, 1999... 9.02 0.01 0.78 0.79 -- -- -- -- 9.81
Period from May
1, to December
31, 1998 (c).... 10.00 -- (0.98) (0.98) -- -- -- -- 9.02
- ---------------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended
June 30, 1999... 12.46 0.36 0.36 0.72 (0.43) -- -- (0.43) 12.75
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
- ---------------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended
June 30, 1999... 19.49 0.10 2.14 2.24 (0.10) -- -- (0.10) 21.63
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
- ---------------------------------------------------------------------------------------------------------------------------------
<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
Unaudited Period
Ended
June 30, 1999... 3,321 (2.52)%(e) $ 31,959 0.34%(d)(x) 6.37%(d) 5.54%(e)
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
Unaudited Period
Ended
June 30, 1999... 645 8.78%(e) 6,332 0.99%(d)(y) 0.24%(d) 26.64%(e)
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
Unaudited Period
Ended
June 30, 1999... 11,556 6.02%(e) 147,339 0.70%(d) 5.76%(d) 5.98%
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%
- ---------------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended
June 30, 1999... 190,619 11.52%(e) 4,123,205 0.29%(d) 0.98%(d) 31.53%
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%
- ---------------------------------------------------------------------------------------------------------------------------------
</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>
Managed
Unaudited Period
Ended
June 30, 1999... $15.64 $0.21 $0.67 $0.88 $(0.21) $ -- $ -- $(0.21)
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)
- --------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended
June 30, 1999... 10.05 0.31 (0.23) 0.08 (0.31) -- -- (0.31)
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)
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended
June 30, 1999... 11.59 0.02 0.50 0.52 (0.02) -- -- (0.02)
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
Unaudited Period
Ended
June 30, 1999... 12.21 0.09 0.40 0.49 (0.09) -- -- (0.09)
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
Unaudited Period
Ended
June 30, 1999... $16.31 210,750 5.75%(e) $3,437,891 0.37%(d) 2.72%(d) 109.80%
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%
- --------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended
June 30, 1999... 9.82 7,222 0.87%(e) 70,946 0.45%(d) 6.23%(d) 55.21%
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%
- --------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended
June 30, 1999... 12.09 5,814 4.55%(e) 70,316 0.99%(p)(d) 0.38%(d) 50.71%
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
Unaudited Period
Ended
June 30, 1999... 12.61 5,407 3.97%(e) 68,176 1.06%(q)(d) 1.48%(d) 17.55%
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>
40
<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
Unaudited Period
Ended
June 30, 1999... $17.70 $0.13 $ 2.06 $ 2.19 $(0.13) $ -- $ -- $(0.13)
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
Unaudited Period
Ended
June 30, 1999... 9.23 0.36 (0.08) 0.28 (0.36) -- (0.36)
Period from May
1, to
December 31,
1998 (c)........ 10.00 0.46 (0.76) (0.30) (0.46) (0.01) -- (0.47)
- --------------------------------------------------------------------------------------------------------------------------
Global Bond
Unaudited Period
Ended
June 30, 1999... 10.60 0.26 (0.47) (0.21) (0.26) -- -- (0.26)
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
Unaudited Period
Ended
June 30, 1999... $19.76 17,201 12.42%(v)(e) $339,914 0.00%(r)(d) 1.46%(d) 29.91%
Year Ended
December 31,
1998............ 17.70 13,139 28.45%(v) 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
Unaudited Period
Ended
June 30, 1999... 9.15 1,909 2.96%(e) 17,468 0.84%(d)(z) 7.77%(d) 27.43%(e)
Period from May
1, to
December 31,
1998 (c)........ 9.23 1,602 (2.98)%(e) 14,789 0.90%(d)(z) 7.43%(d) 17.67%(e)
- --------------------------------------------------------------------------------------------------------------------------
Global Bond
Unaudited Period
Ended
June 30, 1999... 10.13 7,182 (2.02)%(e) 72,782 0.88%(s)(d) 4.89%(d) 242.91%
Year Ended De-
cember 31,
1998............ 10.60 6,301 9.15% 66,791 0.95%(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, and .87% for the years
ended December 31, 1998, and 1995 respectively.
(h) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.91% for the year ended
December 31, 1995.
(i) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.50% for the period ending
June 30, 1999 and 3.69% for the year ended December 31, 1998.
41
<PAGE>
(j) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .79%, and 1.83% for the years
ended December 31, 1996, and 1995 respectively, for the years ended
December 31, 1997, 1996, and 1995, respectively.
(k) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.12%, and 1.55%, for the
years ended December 31, 1997, and 1996, respectively.
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.41% for the period ending
June 30, 1999 and 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 1.42%, and 2.34%, for the
years ended December 31, 1997, and 1996, respectively.
(n) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.06%, and 2.74%, 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 1.30%, and 2.06%, for the
years ended December 31, 1997, and 1996, respectively.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.14% for the period ending
June 30, 1999 and 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 .23% for the period ending
June 30, 1999 and .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 1.32%, and 1.57%, for the
years ended December 31, 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 1.68% for the period ending
June 30, 1999 and 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 .47% for the period ending
June 30, 1999 and .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 2.84% for the period ending
June 30, 1999 and 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 1.26% for the period ending
June 30, 1999 and 2.03%, for the year ended December 31, 1998.
(1) The Total Return includes the effect of the capital contribution of $.32
per share. The total Investment Return without the capital contribution
would have been 25.19%.
42
<PAGE>
SCHEDULE OF INVESTMENTS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 3.3%
B.F. Goodrich Co.......................... 175,000 $ 7,438
United Technologies Corp.................. 458,200 32,847
----------
40,285
Auto and Truck Parts - 0.6%
Lear Corp. *.............................. 146,600 7,293
Banks - 0.5%
Comerica, Inc............................. 100,000 5,944
Chemicals - 0.2%
Solutia, Inc.............................. 141,500 3,016
Computer Equipment - 8.2%
Dell Computer Corp. *..................... 453,400 16,776
Hewlett-Packard Co........................ 154,600 15,537
Intel Corp................................ 886,600 52,753
International Business Machines Corp...... 100,000 12,925
Network Appliance, Inc. *................. 53,000 2,961
----------
100,952
Computer Software and Services - 10.0%
America Online, Inc. *.................... 247,900 27,393
Cadence Design Systems, Inc. *............ 307,600 3,922
Computer Associates International, Inc.... 53,300 2,932
EMC Corp. *............................... 156,900 8,629
Microsoft Corp............................ 827,300 74,612
Sun Microsystems, Inc. *.................. 94,700 6,522
----------
124,010
Consumer - Miscellaneous - 3.0%
Avery Dennison Corp....................... 149,000 8,996
Black & Decker Corp....................... 186,300 11,760
Honeywell, Inc............................ 139,600 16,176
----------
36,932
Cosmetics and Personal Care Products - 2.3%
Avon Products, Inc........................ 60,800 3,374
Dial Corp................................. 105,700 3,931
Procter & Gamble Co....................... 235,400 21,010
----------
28,315
Diversified Operations - 8.1%
General Electric Co....................... 508,100 57,416
Illinois Tool Works, Inc.................. 82,000 6,724
Reynolds & Reynolds Co. - Cl. A........... 281,100 6,553
Textron, Inc.............................. 68,800 5,663
Tyco International, Ltd................... 248,900 23,583
----------
99,939
Electronic Products and Services - 6.0%
Analog Devices, Inc. *.................... 1
Applied Materials, Inc. *................. 77,800 5,747
Cisco Systems, Inc. *..................... 667,000 43,021
Pitney Bowes, Inc......................... 125,300 8,051
Teradyne, Inc. *.......................... 89,000 6,386
Texas Instruments, Inc.................... 78,200 11,339
----------
74,544
Financial Services - 3.3%
Associates First Capital Corp. - Cl. A *.. 210,500 9,328
Citigroup, Inc............................ 675,600 32,091
----------
41,419
Food, Beverage and Tobacco - 4.6%
Anheuser-Busch Cos., Inc.................. 35,300 2,504
ConAgra, Inc.............................. 100,000 2,663
Flowers Industries, Inc................... 100,000 2,169
Philip Morris Cos., Inc................... 604,900 24,309
Quaker Oats Co............................ 242,100 16,069
UST, Inc.................................. 331,900 9,708
----------
57,422
Health Care Products - 15.8%
Abbott Laboratories....................... 168,400 7,662
Amgen, Inc. *............................. 150,500 9,162
Boston Scientific Corp. *................. 150,000 6,591
Bristol-Myers Squibb Co................... 298,400 21,019
Cardinal Health, Inc...................... 382,100 24,502
Eli Lilly & Co............................ 106,100 7,600
Glaxo Wellcome plc - ADR.................. 118,800 6,727
Guidant Corp. *........................... 217,300 11,177
Johnson & Johnson......................... 241,900 23,706
Merck & Co., Inc.......................... 346,600 25,649
Mylan Laboratories, Inc................... 365,600 9,688
Pfizer, Inc............................... 143,500 15,749
Schering-Plough Corp...................... 394,800 20,924
Warner-Lambert Co......................... 70,000 4,856
----------
195,012
Health Care Services - 1.9%
HEALTHSOUTH Corp. *....................... 762,900 11,396
Lincare Holdings, Inc..................... 134,200 3,355
Omnicare, Inc............................. 254,800 3,217
Universal Health Services, Inc. -
Cl. B *.................................. 116,500 5,563
----------
23,531
Household Appliances / Furnishings - 0.4%
Premark International, Inc................ 148,300 5,561
Housing - 0.2%
Clayton Homes, Inc........................ 186,875 2,137
Insurance - 3.7%
American International Group, Inc......... 105,500 12,350
Equitable Cos., Inc....................... 131,400 8,804
Hartford Financial Services Group, Inc.... 144,600 8,432
Marsh & McLennan Cos., Inc................ 129,600 9,785
PartnerRe, Ltd............................ 156,800 5,860
----------
45,231
43
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Leisure and Recreation - 0.4%
Mattel, Inc............................... 200,000 $ 5,287
Machinery - 0.8%
Ingersoll-Rand Co......................... 146,800 9,487
Media - TV / Radio - 5.2%
CBS Corp. *............................... 579,600 25,176
Clear Channel Communications, Inc. *...... 259,600 17,896
Time Warner, Inc.......................... 168,100 12,355
Viacom, Inc. - Cl. B *.................... 210,600 9,267
----------
64,694
Personal and Commercial Lending - 0.4%
MBNA Corp................................. 164,700 5,044
Pollution Control - 1.4%
Allied Waste Industries, Inc. *........... 372,300 7,353
Waste Management, Inc..................... 194,300 10,444
----------
17,797
Retail - Department Stores - 6.8%
Consolidated Stores Corp. *............... 125,000 3,375
Dayton Hudson Corp........................ 69,800 4,537
Home Depot, Inc........................... 510,500 32,895
Lowe's Cos., Inc.......................... 243,800 13,820
Tandy Corp................................ 150,600 7,361
TJX Cos., Inc............................. 165,000 5,497
Wal-Mart Stores, Inc...................... 341,000 16,453
----------
83,938
Retail - Food - 0.4%
Outback Steakhouse, Inc. *................ 123,400 4,851
Shoe and Apparel Manufacturing - 1.1%
Tommy Hilfiger Corp. *.................... 184,200 13,539
Telecommunication Equipment - 4.9%
Lucent Technologies, Inc.................. 716,100 48,292
Tellabs, Inc. *........................... 177,000 11,959
----------
60,251
Telephone - 2.8%
MCI WorldCom, Inc......................... 396,100 34,089
Transportation Services - 1.6%
Kansas City Southern Industries, Inc...... 177,400 11,320
U.S. Airways Group, Inc. *................ 72,700 3,167
UAL Corp.................................. 87,600 5,694
----------
20,181
U.S. Government Agencies - 1.5%
Federal National Mortgage Assoc........... 262,900 17,976
----------
TOTAL COMMON STOCK- 99.4% 1,228,677
SHORT-TERM INVESTMENTS - 0.7%
Investment in joint trading account (Note B)
5.291% due 07/01/99....................... $ 8,141 $ 8,142
-------- ----------
TOTAL INVESTMENTS- 100.1% 1,236,819
Payables, less cash and receivables- (0.1)% (1,165)
-------- ----------
NET ASSETS- 100.0% $1,235,654
======== ==========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
44
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
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 $ 2,455
Agricultural Operations - 0.6%
Marlin Water Trust - Sr. Notes 144A (a)
7.09% due 12/15/01................................. 3,160 3,173
Monsanto Co. - Debs. 144A (a)
6.6% due 12/01/28.................................. 2,560 2,275
--------
5,448
Auto and Truck Parts - 0.5%
General Motors Corp.
9.625% due 12/01/00................................ 4,000 4,173
Automobile - 0.4%
Ford Motor Co. - Debs.
9.0% due 09/15/01.................................. 2,000 2,101
United Rentals, Inc. - Notes 144A (a)
9.0% due 04/01/09.................................. 1,765 1,734
--------
3,835
Banks - 3.8%
Abbey National First Capital - Sr. Sub. Notes
8.2% due 10/15/04.................................. 4,000 4,238
Banc One Corp. - Sub. Debs.
7.625% due 10/15/26................................ 2,570 2,560
BankBoston Corp. - Sub. Notes
6.625% due 12/01/05................................ 2,385 2,329
First Union National Bank - Sub. Notes
6.5% due 12/01/28.................................. 2,555 2,278
InterAmerican Development Bank - Debs.
8.5% due 03/15/11.................................. 6,000 6,960
International Bank of Reconstruction &
Development
8.25% due 09/01/16................................. 2,150 2,518
National Westminister Bank, NY
9.45% due 05/01/01................................. 5,000 5,256
NB Capital Trust IV
8.25% due 04/15/27................................. 1,680 1,729
RBSG Capital Corp. - Notes
10.125% due 03/01/04............................... 5,000 5,659
--------
33,527
Brokerage and Investment Management - 0.8%
Merrill Lynch & Co., Inc. - Notes
6.875% due 11/15/18................................ 2,540 2,366
Morgan Stanley Group, Inc.
8.875% due 10/15/01................................ 3,000 3,168
Salomon Brothers Mortgage Securities VII
6.75% due 07/25/24................................. 1,890 1,882
--------
7,416
Chemicals - 0.2%
Akzo Nobel, Inc. - Bonds 144A (a)
6.0% due 11/15/03.................................. 1,630 1,580
Commercial Services - 0.8%
Harvard University - Debs
8.125% due 04/15/07................................ 5,000 5,441
Primark Corp. - Sr. Sub. Notes
9.25% due 12/15/08................................. 1,830 1,775
--------
7,216
Computer Software and Services - 0.2%
PSINet, Inc. - Sr. Notes
11.5% due 11/01/08................................. 1,795 1,885
Consumer - Miscellaneous - 0.2%
CSC Holdings, Inc. - Sr. Notes
7.25% due 07/15/08................................. 1,645 1,580
Globe Manufacturing Corp.
10.0% due 08/01/08................................. 345 259
--------
1,839
Diversified Operations - 0.8%
CMS Panhandle Holding - Sr. Notes 144A (a)
7.0% due 07/15/29.................................. 1,695 1,566
Harrahs Operating Co., Inc.
7.5% due 01/15/09.................................. 2,330 2,264
7.875% due 12/15/05................................ 890 861
Tenneco, Inc.
10.075% due 02/01/01............................... 2,000 2,097
--------
6,788
Electric Power - 8.9%
AES Corp.
10.25% due 07/15/06................................ 3,113 3,191
AES Eastern Energy LP - 144A (a)
9.0% due 01/02/17.................................. 2,130 2,089
Beaver Valley Funding Corp. - Debs
9.0% due 06/01/17.................................. 2,825 3,064
BVPS II Funding Corp.
8.89% due 06/01/17................................. 2,464 2,645
Calpine Corp. - Sr. Notes
10.5% due 05/15/06................................. 1,920 2,054
Chugach Electric Assoc., Inc. - 1st Mtge.
8.08% due 03/15/02................................. 1,671 1,697
Cleveland Electric Illuminating Co. - 1st Mtge.
9.5% due 05/15/05.................................. 5,775 6,154
CMS Energy Corp. - Sr. Notes
6.75% due 01/15/04................................. 2,040 1,929
CMS Energy Corp. - Sr. Notes 144A (a)
8.125% due 05/15/02................................ 2,650 2,689
Connecticut Light & Power Co.
7.75% due 06/01/02................................. 1,090 1,114
Connecticut Light & Power Co. - Note 144A(a)
8.59% due 06/04/03................................. 1,310 1,312
East Coast Power LLC - 144A (a)
7.066% due 03/31/12................................ 2,715 2,485
Long Island Lighting Co. - Debs.
8.2% due 03/15/23.................................. 3,235 3,442
45
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Electric Power - Continued
Midland Cogeneration Venture
10.33% due 07/23/02............................... $ 3,333 $ 3,500
Monterrey Power SA DE CV - 144A (a)
9.625% due 11/15/09............................... 720 572
New Century Energies, Inc. - 1st Mtge.
6.875% due 12/01/99............................... 3,500 3,512
9.875% due 07/01/20............................... 4,500 4,809
Niagara Mohawk Power Corp. - Debs.
8.77% due 01/01/18................................ 4,016 4,133
North Atlantic Energy Corp. - 1st Mtge.
9.05% due 06/01/02................................ 1,868 1,932
PNPP II Funding Corp.
9.12% due 05/30/16................................ 2,235 2,418
Puget Sound Energy Capital Trust
8.231% due 06/01/27............................... 1,705 1,689
Quest Diagnostic, Inc.
10.75% due 12/15/06............................... 1,847 2,092
System Energy Resources, Inc. - 1st Mtge.
7.71% due 08/01/01................................ 2,590 2,637
Texas New Mexico Power Co. - 1st Mtge.
9.25% due 09/15/00................................ 8,000 8,233
UtiliCorp United, Inc.
8.2% due 01/15/07................................. 5,000 5,265
Waterford 3 Funding - Entergy
8.09% due 01/02/17................................ 4,840 4,832
--------
79,489
Electrical Equipment - 0.1%
Electric Lightwave, Inc.
6.05% due 05/15/04................................ 1,180 1,145
Financial Services - 6.7%
American Express Credit Corp.
8.625% due 05/15/22............................... 6,000 6,179
Bank of New York Institution Capital -144A (a)
7.78% due 12/01/26................................ 2,515 2,488
Barclays North America Capital Corp. - Debs
9.75% due 05/15/21................................ 4,650 4,985
Chrysler Financial Co. LLC
5.69% due 11/15/01................................ 2,610 2,573
CIT Group, Inc. - Notes
5.5% due 10/15/01................................. 3,160 3,107
Citibank Credit Card Master Trust I - Ser.
1997-7 A
6.35% due 08/15/02................................ 2,360 2,376
Commercial Credit Group, Inc.
6.0% due 04/15/00................................. 7,000 7,003
Constitution Capital Trust I - 144A (a)
9.15% due 04/15/27................................ 1,815 1,834
Fairfax Financial Holdings - Notes
8.3% due 04/15/26................................. 2,200 2,145
Finova Capital Corp. - Notes
6.25% due 11/01/02................................ 2,375 2,340
Green Tree Financial Corp.
8.3% due 06/15/26................................. 2,170 2,291
Peco Energy Transition Trust
6.05% due 03/01/09................................ 2,600 2,490
Pemex Finance, Ltd. - 144A (a)
6.55% due 02/15/08................................ 2,380 2,354
Sun Canada Financial Co.
6.625% due 12/15/07............................... 3,345 3,284
Texaco Capital, Inc.
8.625% due 06/30/10............................... 10,000 11,324
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 06/30/06............................... 2,780 2,827
--------
59,600
Food, Beverage and Tobacco - 0.4%
Agrilink Foods, Inc.
11.875% due 11/01/08.............................. 910 939
Canandaigua Brands, Inc. - Sr. Sub. Notes
8.75% due 12/15/03................................ 2,365 2,324
--------
3,263
Foreign Governmental - 2.2%
Hydro-Quebec - Debs.
9.4% due 02/01/21................................. 610 734
Hydro-Quebec - Debs. Ser. FU
11.75% due 02/01/12............................... 5,000 6,758
Hydro-Quebec - Debs. Ser. IF
7.375% due 02/01/03............................... 1,000 1,024
Nova Scotia
8.75% due 04/01/22................................ 3,000 3,522
Province of Manitoba
9.0% due 12/15/00................................. 3,000 3,131
9.25% due 04/01/20................................ 2,000 2,456
Province of Saskatchewan
9.375% due 12/15/20............................... 1,500 1,860
Republic of Brazil
4.5% due 04/15/14.................................
Republic of Venezuela
6.812% due 12/18/07...............................
--------
19,485
Health Care Products - 0.6%
Fresenius Medical Capital Trust II
7.875% due 02/01/08............................... 1,740 1,618
Guidant Corp. - Notes
6.15% due 02/15/06................................ 2,120 1,996
Sola International, Inc. - Notes
6.875% due 03/15/08............................... 740 653
Watson Pharmaceuticals, Inc. - Sr. Notes
7.125% due 05/15/08............................... 900 865
--------
5,132
46
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Health Care Services - 0.3%
Dynacare, Inc. - Sr. Notes 144A (a)
10.75% due 01/15/06............................... $ 2,855 $ 2,855
Housing - 0.4%
Oakwood Homes Corp. - Sr. Notes
7.875% due 03/01/04............................... 1,540 1,522
Owens Corning - Notes
7.0% due 03/15/09................................. 2,365 2,220
--------
3,742
Insurance - 1.9%
Conseco, Inc. - Notes
6.8% due 06/15/05................................. 1,185 1,132
Equitable Life Assurance Society USA - 144A(a)
6.95% due 12/01/05................................ 2,750 2,751
Liberty Mutual Insurance Co. - Notes 144A (a)
7.875% due 10/15/26............................... 850 841
8.2% due 05/04/07................................. 2,415 2,513
Mass. Mutual Life Insurance Co. - Notes
144A (a)
7.625% due 11/15/23............................... 4,090 4,219
New York Life Insurance Co. - Sr. Notes
7.5% due 12/15/23................................. 5,970 5,487
--------
16,943
Leisure and Recreation - 1.1%
Marvel Enterprises, Inc. - Sr. Notes
12.0% due 06/15/09................................ 2,230 2,303
SFX Entertainment, Inc.
9.125% due 12/01/08............................... 2,570 2,512
Sun International Hotels, Ltd.
8.625% due 12/15/07............................... 1,178 1,154
9.0% due 03/15/07................................. 1,100 1,100
Trump Holdings & Funding
15.5% due 06/15/05................................ 2,325 2,325
--------
9,394
Media - Publishing - 0.1%
Garden State Newspapers, Inc. - Sr. Sub Notes
8.75% due 10/01/09................................ 1,277 1,239
Media - TV / Radio - 3.5%
Adelphia Communications Corp. - Sr. Notes
8.125% due 07/15/03............................... 1,270 1,238
9.25% due 10/01/02................................ 2,460 2,497
Capstar Broadcasting, Inc. - Sr. Sub. Notes
10.75% due 05/15/06............................... 1,368 1,450
Continental Cablevision - Sr. Notes
8.3% due 05/15/06................................. 2,165 2,299
Lenfest Communications, Inc. - Sr. Sub. Notes
10.5% due 06/15/06................................ 3,285 3,786
News America Holdings, Inc. - Debs
8.25% due 08/10/18................................ 2,636 2,723
Rogers Cablesystems - Notes
9.625% due 08/01/02............................... 1,385 1,440
10.0% due 03/15/05................................ 3,030 3,272
TCI Communications, Inc. - Debs.
7.875% due 02/15/26............................... 2,580 2,707
Time Warner, Inc.
6.625% due 05/15/29............................... 2,550 2,246
9.125% due 01/15/13............................... 2,493 2,842
TKR Cable, Inc.
10.5% due 10/30/07................................ 4,132 4,407
--------
30,907
Metal Product and Fabrication - 0.2%
Yanacocha Receivables - Pass thru Certs.
144A (a)
8.4% due 06/15/05................................. 1,711 1,583
Metals and Mining - 0.2%
Golden Northwest Aluminum
12.0% due 12/15/06................................ 1,420 1,470
Municipals - 0.4%
New Hampshire State
7.7% due 07/01/12................................. 3,000 3,168
Natural Gas Distribution - 0.9%
Camuzzi Gas - Bonds
9.25% due 12/15/01................................ 1,055 1,029
Michigan Consolidated Gas Co. - 1st Mtge.
5.75% due 05/01/01................................ 6,667 6,620
--------
7,649
Oil - 0.3%
Conoco, Inc. - Sr. Notes
6.95% due 04/15/29................................ 2,540 2,372
Oil - Equipment and Services - 0.4%
Humpuss Funding Corp. - 144A (a)
7.72% due 12/15/09................................ 2,068 1,483
Petroleum-Geo Services ASA
6.625% due 03/30/08............................... 2,410 2,278
--------
3,761
Oil and Natural Gas Exploration and Production - 0.9%
Burlington Resources, Inc. - Debs.
7.375% due 03/01/29............................... 2,550 2,469
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 09/15/09.............................. 3,000 3,467
Petroleos Mexicanos - 144A (a)
9.375% due 12/02/08............................... 1,055 1,071
Valero Energy Corp. - Notes
7.375% due 03/15/06............................... 785 762
--------
7,769
Paper and Forest Products - 0.6%
Fort James Corp.
6.5% due 09/15/02................................. 2,120 2,114
47
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Paper and Forest Products - Continued
S.D. Warren Co.
12.0% due 12/15/04................................ $ 2,640 $ 2,831
--------
4,945
Personal and Commercial Lending - 6.3%
Beneficial Corp. - Notes
9.6% due 07/19/00................................. 4,000 4,143
CS First Boston Mortgage Securities Corp. -
Ser. 1998-C1 A1A
6.26% due 04/11/30................................ 2,963 2,920
Deutsche Mortgage & Asset Receiving Corp. -
Ser. 1998-C1
6.861% due 03/15/08............................... 2,170 2,066
EQCC Home Equity Loan Trust
6.57% due 02/15/29................................ 2,120 2,069
Ford Motor Credit Co. - Notes
6.125% due 04/28/03............................... 3,185 3,138
General Motors Acceptance Corp. - Notes
6.375% due 12/01/01............................... 3,165 3,167
GMAC Commercial Mortgage Securities, Inc.
6.566% due 11/15/07............................... 3,385 3,288
6.853% due 09/15/06............................... 7,325 7,402
Household Finance Corp. - Notes
5.875% due 11/01/02............................... 3,955 3,876
Household Finance Corp. - Sr. Unsub.
5.875% due 02/01/09............................... 1,910 1,732
Midland Funding Corp. II
11.75% due 07/23/05............................... 1,150 1,327
Money Store Home Equity Trust- Ser. 1997-C1
DAF7
6.485% due 12/15/28............................... 4,060 3,982
Residential Accredit Loans, Inc. - Ser.
1997-QS4 A3
7.25% due 05/25/27................................ 1,737 1,738
UCFC Home Equity Loan
7.18% due 02/15/25................................ 1,115 1,130
UCFC Home Equity Loan - Ser. 1996-A1 A5
6.5% due 04/15/16................................. 6,840 6,848
UCFC Home Equity Loan - Ser. 1997-A1 A8
7.22% due 06/15/28................................ 6,910 7,011
--------
55,837
Real Estate Investment Trust - 2.2%
American Health Prop., Inc. - Notes
7.5% due 01/15/07................................. 1,350 1,202
Amresco Residential Securities - Mtge. Loan
6.51% due 08/25/27................................ 7,885 7,725
Cabot Industrial Properties LP - Notes
7.125% due 05/01/04............................... 1,975 1,944
Camden Property Trust - Sr. Notes
7.0% due 04/15/04................................. 2,170 2,120
IMC Home Equity Loan Trust - Ser. 1998-1 A4
6.6% due 03/20/25................................. 3,280 3,260
Liberty Property LP - Notes
6.6% due 06/05/02................................. 1,675 1,622
TriNet Corp. Realty Trust, Inc.
7.3% due 05/15/01................................. 2,070 2,064
--------
19,937
Real Estate Operations - 0.1%
HMH Properties, Inc.
7.875% due 08/01/05............................... 1,455 1,368
Retail - Department Stores - 0.6%
Ames Department Stores, Inc. - Sr. Notes 144A(a)
10.0% due 04/15/06................................ 995 980
Fred Meyer, Inc.
7.45% due 03/01/08................................ 4,150 4,180
--------
5,160
Retail - Food - 1.3%
McDonald's Corp. - Debs.
7.375% due 07/15/33............................... 5,000 4,920
Pathmark Stores, Inc. - Sub. Notes
11.625% due 06/15/02.............................. 3,020 3,073
Safeway, Inc. - Notes
5.875% due 11/15/01............................... 1,430 1,408
The Great Atlantic & Pacific Tea Company,
Inc. - Notes
7.75% due 04/15/07................................ 2,655 2,560
--------
11,961
Shoe and Apparel Manufacturing - 0.3%
Tropical Sportswear International Corp.
11.0% due 06/15/08................................ 950 988
WestPoint Stevens, Inc. - Sr. Notes
7.875% due 06/15/05............................... 2,145 2,099
--------
3,087
Telecommunication Equipment - 0.1%
Axia, Inc.
10.75% due 07/15/08............................... 915 901
Telecommunication Services - 1.5%
Falcon Holding Group L.P. - Debs. Ser. B
8.375% due 04/15/10............................... 1,645 1,629
Global Crossing Holdings, Ltd.
9.625% due 05/15/08............................... 1,805 1,877
Intermedia Communications, Inc. - Sr. Notes
Ser. B
8.6% due 06/01/08................................. 720 670
McLeodUSA, Inc. - Sr. Notes
9.5% due 11/01/08................................. 1,780 1,780
Nextel Communications, Inc. - Sr. Disc. Notes
0.0% due 02/15/08................................. 1,205 828
9.75% due 08/15/04................................ 1,566 1,593
NTL Communications Corp. - Sr. Notes
11.5% due 10/01/08................................ 2,175 2,398
48
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SOVEREIGN 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
7.25% due 11/01/08................................ $ 2,305 $ 2,213
--------
12,988
Telephone - 4.4%
Chesapeake & Potomac Telephone Co. - Debs
6.05% due 05/15/03................................ 6,460 6,383
GTE Corp. - Debs.
8.75% due 11/01/21................................ 3,000 3,403
GTE North, Inc. - Debs.
5.65% due 11/15/08................................ 3,295 3,035
LCI International, Inc. - Sr. Notes
7.25% due 06/15/07................................ 2,205 2,139
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01............................... 3,595 3,577
Metromedia Fiber Network, Inc. - Sr. Notes
10.0% due 11/15/08................................ 2,715 2,790
MetroNet Communications Corp.
12.0% due 08/15/07................................ 1,770 2,040
Michigan Bell Telephone Co.
7.85% due 01/15/22................................ 5,000 5,266
New Jersey Bell Telephone Co.
8.0% due 06/01/22................................. 4,000 4,348
NEXTLINK Communications, Inc. - Sr. Notes
10.75% due 11/15/08............................... 1,765 1,813
Sprint Capital Corp.
6.9% due 05/01/19................................. 2,540 2,364
Sprint Corp.
8.125% due 07/15/02............................... 1,000 1,037
U.S. West Capital Funding, Inc.
6.875% due 07/15/28............................... 845 762
--------
38,957
Transportation Services - 3.1%
America West Airlines, Inc.
6.93% due 01/02/08................................ 1,849 1,797
Continental Airlines, Inc. - Notes
8.0% due 12/15/05................................. 2,265 2,189
Continental Airlines, Inc. - Pass thru Certs.
7.206% due 06/30/04............................... 3,341 3,342
Erac USA Finance Co. - 144A (a)
6.625% due 02/15/05............................... 3,345 3,239
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 2,497
Northwest Airlines Corp. - Ser. 1996-1
8.97% due 01/02/15................................ 219 230
NWA Trust
9.25% due 06/21/14................................ 2,380 2,522
U.S. Air, Inc.
11.2% due 03/19/05................................ 1,303 1,403
Union Pacific Corp. - Debs.
6.625% due 02/01/29............................... 2,540 2,225
Union Pacific Corp. - Notes
9.65% due 06/01/00................................ 5,000 5,141
Wisconsin Central Transportation Corp.
6.625% due 04/15/08............................... 1,360 1,300
--------
27,766
U.S. Government Agencies - 8.7%
Federal Home Loan Mortgage Corp.
6.0% due 06/15/11................................. 10,000 9,688
Federal National Mortgage Assoc.
6.5% due 11/01/28................................. 11,470 11,065
6.94% due 01/25/22................................ 1,525 1,546
7.0% due 09/01/10................................. 5,546 5,568
7.385% due 03/25/21............................... 1,205 1,238
Government National Mortgage Assoc.
6.5% due 02/15/28................................. 4,226 4,063
6.5% due 01/15/29................................. 4,196 4,035
6.5% due 02/15/29................................. 4,285 4,120
7.0% due 09/15/25................................. 2,666 2,633
7.0% due 08/15/28................................. 7,423 7,323
7.0% due 03/15/29................................. 9,500 9,372
7.5% due 07/20/99................................. 3,100 3,129
7.5% due 09/15/28................................. 21 22
8.0% due 02/15/25................................. 726 747
8.0% due 05/15/25................................. 382 393
8.0% due 06/15/25................................. 907 933
8.0% due 09/15/25................................. 1,255 1,291
8.0% due 10/15/25................................. 877 902
8.0% due 01/15/26................................. 431 442
8.0% due 01/15/27................................. 1,349 1,387
8.0% due 08/15/27................................. 4,697 4,830
8.5% due 09/15/21................................. 807 848
9.0% due 05/15/21................................. 610 649
9.0% due 08/15/21................................. 750 799
9.5% due 06/15/16................................. 461 495
--------
77,518
U.S. Governmental - 24.3%
U.S. Treasury - Bonds
7.125% due 02/15/23 #............................. 76,167 84,414
8.875% due 08/15/17............................... 27,264 34,830
U.S. Treasury - Notes
5.75% due 08/15/03................................ 10,740 10,747
7.0% due 07/15/06................................. 36,334 38,486
7.5% due 05/15/02................................. 23,525 24,679
7.5% due 02/15/05................................. 18,106 19,492
8.0% due 05/15/01................................. 2,889 3,014
--------
215,662
--------
TOTAL PUBLICLY-TRADED BONDS- 91.6% 813,215
49
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
WARRANTS - 0.0%
Telephone
MetroNet Communications Corp. - CW07 144A (a)
expires 08/15/07 (Cost $58).................. $ 2 $ 244
SHORT-TERM INVESTMENTS - 7.1%
Investment in joint trading account (Note B)
5.291% due 07/01/99.......................... 62,998 63,007
--------- --------
TOTAL INVESTMENTS- 98.7% 876,466
Cash and Receivables, less payables- 1.3% 11,058
--------- --------
NET ASSETS- 100.0% $887,524
========= ========
(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 June 30, 1999, securities aggregated $48,244 or
5.4% of net assets of the Portfolio.
# Securities, or a portion thereof, with an aggregate market value of $280
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
50
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 1.1%
Telefonica de Argentina SA - ADR (UTIT)..... 4,600 $ 144
Brazil - 6.0%
Companhia Cervejaria Brahma - ADR (FOOD).... 5,100 58
Companhia Energetica de Minas Gerias - ADR
(UTIE)..................................... 4,700 98
Compania Brasileira de Distribuicao Grupo
Pao de Acucar (RETF)....................... 4,300 81
Embratel Participacoes S.A. - ADR (UTIT).... 14,500 201
Telecomunicacoes Brasileiras S.A. (UTIT).... 3,550 320
Telecomunicacoes Brasileiras S.A. - ADR
(UTIT)..................................... 5,750
-------
758
Chile - 1.3%
Compania de Telecomunicaciones de Chile SA
(UTIT)..................................... 6,800 168
Czech Republic - 0.7%
Ceske Radiokomunikace - GDR (MEDI).......... 2,560 89
Egypt - 2.7%
Al-Ahram Beverage Co. S. A. E - GDR (FOOD) 2,900 81
Egypt Mobile Phone (TELS)................... 11,500 259
-------
340
Greece - 2.9%
Alpha Credit Bank (BANK).................... 2,600 167
STET Hellas Telecommunications S.A. - ADR *
(TELS)..................................... 8,800 197
-------
364
Hong Kong - 1.1%
China Telecom (Hong Kong), Ltd. - ADR
(TELS)..................................... 1,300 74
Shandong International Power Development
Co., Ltd. - H Shares * (UTIE).............. 300,000 69
-------
143
India - 6.2%
Bajaj Auto, Ltd. - GDR (AUTO)............... 7,700 128
Hindalco Industries, Ltd. (META)............ 5,100 93
ITC, Ltd. - GDR * (FOOD).................... 7,800 218
Mahanagar Telephone Nigam Ltd. (TELS)....... 5,000 43
State Bank of India - GDR (BANK)............ 7,600 83
Videsh Sanchar Nigam, Ltd. (TELS)........... 11,700 123
Videsh Sanchar Nigam, Ltd. - GDR * (TELS)... 8,000 102
-------
790
Indonesia - 2.4%
Gulf Indonesia Resources, Ltd. (OILX)....... 4,800 55
PT Indah Kiat Pulp & Paper Corp. Tbk (PAPR). 144,000 67
PT Indofood Sukses Makmur Tbk (FOOD)........ 72,000 98
PT Telekomunikasi Indonesia (TELS).......... 145,800 84
-------
249
Israel - 3.1%
Bank Leumi Le-Israel (UTIE)................. 87,800 166
Bezeq Israeli Telecommunication Corp., Ltd.
(UTIT)..................................... 15,000 61
Koor Industries, Ltd. (TELS)................ 1,400 161
-------
388
Malaysia - 2.9%
Public Bank Berhad (BANK)................... 241,000 184
Tenaga Nasional Berhad (UTIE)............... 80,000 184
-------
368
Mexico - 11.7%
Carso Global Telecom - Cl. A1 (UTIT)........ 34,000 215
Corporacion Interamericana de
Entretenimiento SA (LEIS).................. 39,400 128
Fomento Economico Mexicano, S.A. de C.V. -
ADR (FOOD)................................. 5,200 207
Grupo Carso SA de CV - Ser. A1 (DIOP)....... 27,000 125
Grupo Financiero Banamex Accival, SA de CV
(Banacci) (FINL)........................... 62,000 158
Grupo Mexico S.A. - Ser. B (META)........... 32,000 136
Grupo Radio Centro S.A. de C.V. - ADR
(MEDI)..................................... 7,500 40
Telefonos de Mexico SA - ADR (UTIT)......... 5,900 477
-------
1,486
Philippines - 3.4%
Bank of the Philippine Islands (BANK)....... 40,000 143
Manila Electric Co. - Cl. B (UTIE).......... 40,000 144
Philippine Long District Telephone Co.
(UTIT)..................................... 4,700 142
-------
429
Poland - 1.4%
Elektrim Spolka Akcyjna S.A. (ETRN)......... 2,200 31
Prokom Software SA (SOFT)................... 2,050 68
Telekomunikacja Polska S.A. * (UTIT)........ 11,000 77
-------
176
Singapore - 0.7%
Asia Pulp & Paper Co., Ltd. - ADR * (PAPR).. 1,500 15
Pacific Internet, Ltd. * (SOFT)............. 1,500 71
-------
86
South Africa - 8.5%
ABSA Group, Ltd. (BANK)..................... 5,500 31
51
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
South Africa - Continued
Anglo American Platinum Corp., Ltd. (PMET).... 4,000 $ 93
Anglo American plc * (FINL)................... 1,530 72
AngloGold, Ltd. (OILE)........................ 1,400 60
B.O.E Corp., Ltd. - N Shares (FUND)........... 100,021 80
Barlow, Ltd. (DIOP)........................... 23,808 137
De Beers Centenary AG (UTIE).................. 6,200 149
Liberty International plc * (READ)............ 3,683 24
Liberty Life Association of Africa, Ltd.
(INSU)....................................... 7,900 101
Molope Foods, Ltd. (FOOD)..................... 76,000 50
Naspers, Ltd. - N Shares (MEDP)............... 11,400 69
Nedcor, Ltd. (BANK)........................... 1,300 29
Sasol, Ltd. (OILX)............................ 18,400 131
Wooltru, Ltd. - N Shares (RETS)............... 31,500 51
-------
1,077
South Korea - 16.5%
Hyundai Motor Co., Ltd. (AUTO)................ 5,050 120
Kookmin Bank (BANK)........................... 2,900 59
Korea Electric Power Corp. - ADR (UTIE)....... 17,800 365
Korea Telecom Corp. * (TELS).................. 2,500 166
Korea Telecom Corp. - ADR * (TELS)............ 5,800 232
L.G. Chemicals, Ltd. (CHEM)................... 3,500 95
Pohang Iron & Steel Co., Ltd. (STEE).......... 2,500 296
Samsung Display Devices Co. (ETRN)............ 5,500 299
Samsung Electronics (ETRN).................... 3,240 356
Sindo Ricoh (COMM)............................ 2,040 109
-------
2,097
Taiwan - 6.4%
China Steel Corp. - GDR (METP)................ 9,450 145
Standard Foods Taiwan, Ltd. - GDR (FOOD)...... 3,888 23
Standard Foods Taiwan, Ltd. - GDR - 144A
(a) (FOOD)................................... 12,877 77
Synnex Technology International Corp.
(COMP)....................................... 7,348 153
Synnex Technology International Corp. - GDR
* (COMP)..................................... 1,560 32
Taiwan Semiconductor Manufacturing Co.,
Ltd. - ADR (FUND)............................ 7,537 256
Yageo Corp. (ETRN)............................ 24,780 120
-------
806
Thailand - 3.0%
Industrial Finance Corp. of Thailand, Ltd.
(FINL)....................................... 130,000 83
Krung Thai Bank Public Co., Ltd. - Foreign
(BANK)....................................... 100,000 66
National Finance Public Co., Ltd. - Foreign
(FINL)....................................... 46,000 28
PTT Exploration and Production Public Co.,
Ltd. (OILX).................................. 8,500 65
Thai Farmers Bank Public Co., Ltd. (BANK)..... 46,000 142
-------
384
Turkey - 3.4%
Haci Omer Sabanci Holding AG (FUND)........... 2,425,000 54
Migros Turk T.A.S. (RETF)..................... 100,000 124
Tupras-Turkiye Petrol Rafinerileri A.S.
(OILX)....................................... 600,000 40
Yapi Kredi Bankas (BANK)...................... 6,622,400 96
Yapi ve Kredi Bankasi A.S. (BANK)............. 8,278,000 120
-------
434
-------
TOTAL COMMON STOCK- 85.4% 10,831
PREFERRED STOCK
Brazil - 4.7%
Banco do Brasil S.A. (BANK)................... 36,900,000 190
Companhia Paranaense de Energia-Copel - ADR
(UTIE)....................................... 6,400 54
Petroleo Brasiliero S.A. - Petrobras (OILS)... 1,445,000 224
Usinas Siderurgicas de Minas S.A. - Cl. A *
(STEE)....................................... 39,000 131
-------
599
Hungary - 0.2%
OTP Bank Rt. (BANK)........................... 730 30
Russia - %
LUKoil Holding - ADR * (OILS)................. 10,000 72
Thailand - 0.2%
Siam Commercial Bank Public Co. * (BANK)...... 20,000 29
-------
TOTAL PREFERRED STOCK- 5.7% 730
WARRANTS - 0.7%
Philippines - 0.7%
Jollibee Foods, Corp. (RETF)..................
expires 03/24/03 (Cost $77).................. 175,000 90
52
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 9.5%
Investment in joint trading account (Note B)
5.291% due 07/01/99.......................... $ 1,201 $ 1,201
--------- -------
TOTAL INVESTMENTS- 101.3% 12,852
Payables, less Cash and receivables- -1.3% -165
--------- -------
NET ASSETS- 100.0% $12,687
========= =======
* Non-Income producing security.
ADR-American Depository Receipt
GDR-Global Depository Receipt
(a) Pursuant to Rule 14A under the Securities act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At June 30, 1999, securities aggregated $77 or 0.6%
of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Abbreviation (000's) Investments
Telephone........................ UTIT 1,805 15.5%
Telecommunication Services....... TELS 1,442 12.4%
Banks............................ BANK 1,369 11.7%
Electric Power................... UTIE 1,229 10.6%
Food, Beverage and Tobacco....... FOOD 812 7.0%
Electronic Products and Services. ETRN 806 6.9%
Steel............................ STEE 427 3.6%
Brokerage and Investment
Management..................... FUND 390 3.3%
Financial Services............... FINL 340 2.9%
Oil.............................. OILS 297 2.6%
Retail-Food...................... RETF 295 2.6%
Oil and Natural Gas Exploration
and Production................. OILX 291 2.5%
Diversified Operations........... DIOP 262 2.3%
Automobile....................... AUTO 248 2.1%
Metals and Mining................ META 229 2.0%
Computer Equipment............... COMP 185 1.6%
Metal Product and Fabrication.... METP 145 1.2%
Computer Software and Services... SOFT 139 1.2%
Media-TV/Radio................... MEDI 129 1.1%
Leisure and Recreation........... LEIS 128 1.1%
Commercial Services.............. COMM 109 0.9%
Insurance........................ INSU 101 0.9%
Chemicals........................ CHEM 95 0.8%
Precious Metals/Gems/Stones...... PMET 93 0.8%
Paper and Forest Products........ PAPR 81 0.7%
Media-Publishing................. MEDP 69 0.6%
Oil-Equipment and Services....... OILE 60 0.5%
Retail-Department Stores......... RETS 51 0.4%
Real Estate Development.......... READ 24 0.2%
--------- -------
$11,651 100.0%
========= =======
53
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.6%
Amcor, Ltd. (CONT).......................... 26,400 $ 147
Brambles Industries, Ltd. (DIOP)............ 7,200 190
Broken Hill Proprietary Co., Ltd. (DIOP).... 62,100 718
Coca Cola Amatil (FOOD)..................... 23,200 93
Coles Myer, Ltd. (RETS)..................... 33,600 195
CSR, Ltd. (CONS)............................ 52,000 149
Foster's Brewing Group, Ltd. (FOOD)......... 70,100 197
Lend Lease Corp. (FINL)..................... 17,600 241
National Australia Bank, Ltd. (BANK)........ 35,300 583
News Corp., Ltd. (MEDI)..................... 52,800 450
Normandy Mining, Ltd. * (PMET).............. 119,400 80
North, Ltd. (META).......................... 59,900 121
Orica, Ltd. (DIOP).......................... 19,600 107
Pacific Dunlop, Ltd. (DIOP)................. 59,000 85
Pioneer International, Ltd. (CONS).......... 41,900 107
Rio Tinto, Ltd. (PMET)...................... 15,400 252
Santos, Ltd. (OILX)......................... 38,000 124
Telstra Corp., Ltd. (TELS).................. 48,100 275
Westpac Banking Corp., Ltd. (BANK).......... 51,800 336
WMC, Ltd. (DIOP)............................ 55,500 238
--------
4,688
Austria - 1.2%
Austrian Airlines (TRAN).................... 3,150 76
Bank Austria AG (BANK)...................... 9,700 510
BBAG Oesterreichische Brau Beteiligungs AG
(FOOD)..................................... 1,650 73
Bohler-Uddeholm AG (STEE)................... 1,500 74
EA-Generali AG (INSU)....................... 650 119
Flughafen Wien AG (TRAN).................... 2,900 122
Mayr-Melnhof Karton Ag (PAPR)............... 1,800 82
Oesterreichische Elektrizitaetswirtschafts
AG (UTIE).................................. 3,200 466
OMV AG (OILX)............................... 3,000 268
RHI AG (DIOP)............................... 2,050 55
VA Technologie AG (ENGI).................... 1,200 109
Wienerberger Baustoffindustrie AG (CONS).... 7,200 186
--------
2,140
Belgium - 1.6%
Barco NV (DIOP)............................ 559 90
Bekaert NV (METP).......................... 139 60
Cimenteries CBR Cementbedrijven (CONS)...... 1,574 145
Colruyt NV (RETF)........................... 187 123
Compagnie Maritime Belge SA (TRAN).......... 1,921 81
D' Ieteren SA (AUTO)........................ 290 134
Delhaize "Le Lion" SA (RETF)................ 1,955 166
Electrabel SA (UTIE)........................ 1,136 367
Fortis (B) (INSU)........................... 16,992 533
Groupe Bruxelles Lambert SA (FUND).......... 1,094 185
KBC Bancassurance Holding NV (BANK)......... 3,540 210
N.V. Union Miniere SA * (META).............. 1,461 60
Solvay SA (FINL)............................ 2,115 140
Total Fina SA - Strip VVPR * (DIOP)......... 3,609
Tractebel (UTIE)............................ 2,341 328
UCB SA (HEAL)............................... 4,800 205
--------
2,827
Denmark - 0.9%
A/S Dampskibsselskabet Svendborg - Cl. B
(TRAN)..................................... 24 297
Danisco A/S (FOOD).......................... 2,450 111
Den Danske Bank (BANK)...................... 2,250 243
Iss International Service System A/S - Cl. B
(COMM)..................................... 1,650 88
Novo-Nordisk A/S - Cl. B (HEAL)............. 2,450 264
Tele Danmark A/S (TELS)..................... 8,300 407
Unidanmark A/S - Cl. A (BANK)............... 2,300 153
--------
1,563
Finland - 1.4%
Merita, Ltd. - Cl. A (BANK)................. 20,500 117
Nokia Oyj (TELE)............................ 25,000 2,191
Outokumpu Oyj (META)........................ 3,500 39
Sampo Insurance Co. plc (INSU).............. 2,500 72
UPM-Kymmene Corp. * (PAPR).................. 4,400 126
--------
2,545
France - 10.3%
Accor SA (LEIS)............................. 1,223 307
Air Liquide (CHEM).......................... 2,083 327
Alcatel Alsthom (TELE)...................... 4,190 590
AXA SA (INSU)............................... 8,781 1,071
Banque Nationale de Paris (BANK)............ 5,646 470
Banque Paribas (BANK)....................... 4,500 504
Bouygues SA (CONS).......................... 847 224
Canal Plus (MEDI)........................... 992 278
Cap Gemini SA (COMM)........................ 1,622 255
Carrefour SA (RETF)......................... 5,874 863
Casino Guichard-Perrachon SA (RETF)......... 2,184 191
Club Mediterranee SA (LEIS)................. 1,000 106
Compagnie de St. Gobain (CONS).............. 2,541 405
Elf Aquitaine (OILX)........................ 7,355 1,079
Eridania Beghin-Say SA (FOOD)............... 758 109
Essilor International SA (HEAL)............. 358 112
France Telecom (TELS)...................... 21,203 1,601
Group Danone * (FOOD)....................... 1,846 476
Imetal SA (CONS)............................ 794 118
L'Oreal (HNBA).............................. 1,608 1,087
Lafarge SA (CONS)........................... 2,526 240
Lagardere S.C.A. (DIOP)..................... 4,108 153
Legrand SA (ELEQ)........................... 658 134
Michelin (PART)............................. 4,386 179
Moet Hennessy-Louis Vuitton (FOOD).......... 2,300 673
Pernod Ricard (FOOD)........................ 1,763 118
Pinault-Printemps-Redoute SA (RETS)......... 2,958 507
Promodes (RETF)............................. 525 344
PSA Peugeot (AUTO).......................... 1,457 230
54
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
France - Continued
Rhone-Poulenc SA (BANK) ................... 9,549 $ 436
Sagem SA (ETRN) ........................... 200 134
Sanofi-Synthelabo SA * (HEAL) ............. 11,624 493
Schneider SA (MACH) ....................... 3,911 220
SEITA (FOOD) ............................... 2,750 159
Sidel SA (MACH) ........................... 1,650 201
Societe BIC SA (COMM) ..................... 2,209 116
Societe Eurafrance SA (FINL) ............... 233 145
Societe Generale de Paris (BANK) ........... 2,732 481
Suez Lyonnaise des Eaux (DIOP) ............. 3,413 615
Thomson CFS (ETRN) ......................... 3,440 119
Total SA - Cl. B (OILX) ................... 10,298 1,328
Unibail (REAL) ............................. 700 90
Usinor SA (STEE) ........................... 8,601 128
Valeo SA (PART) ........................... 2,676 221
Vivendi (DIOP) ............................. 14,850 1,202
--------
18,839
Germany - 12.5%
Adidas-Salomon AG (APPA) ................... 1,920 190
Allianz AG - Reg. (INSU) ................... 8,380 2,324
AMB Aachener & Muenchener Beteiligungs AG
(INSU)..................................... 1,730 176
Axa Colonia Konzern AG (INSU) ............. 1,220 117
BASF AG (CHEM) ............................. 21,860 966
Bayer AG (CHEM) ........................... 24,980 1,040
Bayerische Vereinsbank AG (BANK) ........... 18,072 1,174
Beiersdorf AG (HNBA) ....................... 4,120 274
Bilfinger & Berger Bau AG (CONS) ........... 2,960 73
Buderus AG (DIOP) ......................... 110 44
Continental AG (PART) ..................... 5,950 141
DaimlerChrysler AG * (AUTO) ............... 19,405 1,680
Deutsche Bank AG (BANK) ................... 18,150 1,107
Deutsche Telekom AG * (TELS) ............... 73,840 3,098
Douglas Holding AG (HNBA) ................. 1,890 85
Dresdner Bank AG (BANK) ................... 18,460 721
Heidelberg Zement (CONS) ................... 2,730 225
Hochtief AG (CONS) ......................... 3,810 175
Karstadt AG (RETS) ......................... 420 202
Linde AG (ENGI) ........................... 330 198
Lufthansa AG (TRAN) ....................... 14,730 267
MAN AG (DIOP) ............................. 4,400 150
Mannesmann AG (MACH) ....................... 3,751 560
Merck KGaA (HEAL) ......................... 7,360 239
Metro AG * (RETS) ......................... 7,950 493
Muenchener Rueckversicherungs-Gesellschaft
AG - Reg. New * (INSU) .................... 2,760 504
Muenchener Rueckversicherungs-Gesellschaft
AG - Reg. (INSU) .......................... 2,760 511
Preussag AG (DIOP) ......................... 6,400 344
RWE AG (OILX) ............................. 12,500 578
SAP AG (SOFT) ............................. 2,120 717
Schering AG (HEAL) ......................... 2,530 268
SGL Carbon AG (CHEM) ....................... 1,190 92
Siemens AG (DIOP) ......................... 18,860 1,454
Thyssen Krupp AG (CONS) .................... 15,100 332
VEBA AG (DIOP) ............................. 18,130 1,065
Viag AG (DIOP) ............................. 1,020 482
Volkswagen AG (AUTO) ....................... 11,100 710
--------
22,776
Hong Kong - 2.1%
Cheung Kong (Holdings), Ltd. (READ) ....... 52,000 462
CLP Holdings, Ltd. (UTIE) ................. 37,500 182
Hang Seng Bank, Ltd. (BANK) ............... 35,000 391
Hong Kong Telecommunications, Ltd. (TELS) . 209,800 545
HSBC Holdings plc (BANK) ................... 12,800 467
Hutchison Whampoa, Ltd. (COMM) ............. 58,000 525
New World Development Co., Ltd. (READ) ..... 70,000 210
Sun Hung Kai Properties, Ltd. (REIT) ....... 59,000 538
Swire Pacific, Ltd. (DIOP) ................. 31,500 156
Wharf (Holdings), Ltd. (DIOP) ............. 113,000 353
--------
3,829
Ireland - 0.5%
Allied Irish Banks plc (BANK) ............. 26,800 352
CRH plc (CONS) ............................. 13,300 236
Greencore Group plc (FOOD) ................. 26,000 80
Irish Life & Permanent plc (FINL) ......... 9,553 101
Jefferson Smurfit Group plc (CONT) ......... 20,200 47
Kerry Group plc (FOOD) ..................... 8,400 100
--------
916
Italy - 8.0%
Alitalia SpA (TRAN) ....................... 30,000 78
Assicurazioni Generali (INSU) ............. 44,000 1,524
Banca Commerciale Italiana (BANK) ......... 84,800 619
Banca Intesa SpA (BANK) ................... 74,800 359
Banca Intesa SpA - RNC (BANK) ............. 37,400 84
Banca Popolare di Milano (BANK) ........... 18,100 140
Benetton Group SpA (APPA) ................. 113,100 223
Bulgari SpA (RETS) ......................... 8,900 60
Burgo (Cartiere) SpA (PAPR) ............... 11,700 75
Credito Italiano SpA (BANK) ............... 131,600 578
Edison SpA (ENER) ......................... 32,600 282
ENI SpA (OILS) ............................. 356,800 2,130
Fiat SpA (AUTO) ........................... 170,400 539
Fiat SpA - RNC (AUTO) ..................... 37,200 63
Istituto Bancario San Paolo di Torino
(BANK) .................................... 71,618 974
Istituto Nazionale delle Assicurazioni
(INSU) .................................... 177,600 412
Italgas SpA (UTIG) ......................... 40,300 169
La Rinascente SpA (CONS) ................... 10,500 79
Marzotto & Figli SpA (APPA) ............... 7,500 58
Mediaset SpA (MEDI) ....................... 56,200 499
Mediobanca SpA (FUND) ..................... 17,000 178
Mondadori (Arnoldo) Editore SpA (MEDP) ..... 9,400 163
55
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Italy - Continued
Montedison SpA (CHEM) ..................... 124,540 $ 203
Olivetti SpA (COMM) ....................... 138,400 332
Parmalat Finanziaria SpA (FOOD) ........... 77,600 102
Pirelli SpA (DIOP) ......................... 81,100 221
Riunione Adriatica di Sicorta SpA (INSU) ... 18,650 181
Riunione Adriatica di Sicorta SpA - RNC
(INSU) .................................... 9,600 81
Sirti SpA (TELE) ........................... 11,100 54
Societa Assicuratrice Industriale (INSU) ... 8,600 89
Telecom Italia Mobile SpA (TELS) ........... 305,100 1,821
Telecom Italia Mobile SpA - RNC (TELS) ..... 68,200 251
Telecom Italia SpA * (TELS) ............... 161,500 1,678
Telecom Italia SpA - RNC (TELS) ........... 37,300 202
Unione Immobiliare SpA * (REAL) ........... 177,600 79
--------
14,580
Japan - 34.5%
77 Bank, Ltd. (BANK) ....................... 18,000 158
Acom Co., Ltd. (LEND) ..................... 5,900 510
Advantest (ETRN) ........................... 3,700 407
Ajinomoto Co., Inc. (FOOD) ................. 23,000 262
Alps Electric Co. (ETRN) ................... 9,000 211
Amada Co., Ltd (MACH) ..................... 20,000 141
Aoyama Trading Co. (RETS) ................. 3,500 111
Asahi Bank Ltd. (BANK) ..................... 53,000 254
Asahi Breweries Ltd. (FOOD) ............... 13,000 162
Asahi Chemical Industry Co., Ltd. (CHEM) ... 44,000 244
Asahi Glass Co., Ltd. (APPL) ............... 48,000 311
Bank of Tokyo-Mitsubishi (BANK) ........... 159,000 2,265
Bridgestone Corp. (PART) ................... 30,000 908
Canon, Inc. (COMM) ......................... 29,000 834
Casio Computer Co. (ETRN) ................. 13,000 99
Chiyoda Corp. (ENGI) ..................... 37,000 76
Citizen Watch Co., Ltd. (RETS) ............. 15,000 130
Credit Saison Co., Ltd. (FINL) ............. 8,000 167
CSK Corp. (SOFT) ........................... 4,700 107
Dai Nippon Printng Co., Ltd. (COMM) ....... 28,000 448
Daicel Chemical Industries, Ltd. (CHEM) ... 16,000 59
Daiichi Pharmaceutical Co., Ltd. (HEAL) ... 10,000 155
Daikin Industries, Ltd. (CONS) ............. 15,000 174
Dainippon Ink & Chemicals, Inc. (CHEM) ..... 40,000 136
Daito Trust Construction Co., Ltd. (REAL) . 1,300 15
Daiwa House Industry Co., Ltd. (HOUS) ..... 20,000 210
Daiwa Securities Co., Ltd. (FUND) ......... 37,000 245
Denso Corp. (ETRN) ......................... 34,000 691
East Japan Railway Co. (TRAN) ............. 145 779
Ebara Corp. (MACH) ......................... 18,000 214
Eisai Co. Ltd. (HEAL) ..................... 11,000 217
Fanuc, Ltd. (ELEQ) ......................... 9,400 505
Fuji Bank, Ltd. (BANK) ..................... 69,000 481
Fuji Photo Film (LEIS) ..................... 18,000 682
Fujikura (ELEQ) ........................... 11,000 53
Fujitsu, Ltd. (ELEQ) ....................... 64,000 1,288
Furukawa Electric Co. (TELE) ............... 10,000 46
Hankyu Corp. (TRAN) ....................... 23,000 91
Hirose Electric Co., Ltd. (ETRN) ........... 2,400 249
Hitachi Zosen Corp. (CONS) ................. 52,000 63
Hitachi, Ltd. (ETRN) ....................... 118,000 1,107
Honda Motor Co. (AUTO) ..................... 34,000 1,442
Hoya Corp. (ETRN) ......................... 5,000 282
Industrial Bank of Japan (BANK) ........... 63,000 500
Isetan Co., Ltd. (RETS) ................... 10,000 86
Ito-Yokado Co., Ltd. (RETS) ............... 15,000 1,004
Itochu Corp. (DIOP) ....................... 48,000 119
Japan Airlines Co., Ltd. (TRAN) ........... 71,000 235
Japan Energy Corp. (OILX) ................. 68,000 80
Japan Metals & Chemicals Co., Ltd. (META) .. 17,000 29
Joyo Bank, Ltd. (BANK) ..................... 29,000 113
JUSCO Co., Ltd. * (RETS) ................... 13,000 236
Kajima Corp. (CONS) ....................... 35,000 127
Kaneka Corp. (CHEM) ....................... 19,000 179
Kansai Electric Power Co., Inc. (UTIE) ..... 20,100 382
KAO Corp. (HNBA) ........................... 16,000 450
Kawasaki Heavy Industry, Ltd. (DIOP) ....... 57,000 155
Kawasaki Steel Corp. (STEE) ............... 117,000 219
Keihin Electric Express Railway Co., Ltd.
(TRAN) .................................... 51,000 169
Kinden Corp. (ENGI) ....................... 13,000 140
Kinki Nippon Railway (TRAN) ............... 43,000 211
Kirin Brewery Co. (FOOD) ................... 32,000 384
Kokuyo Co. (COMM) ......................... 7,000 113
Komatsu, Ltd. (MACH) ....................... 44,000 281
Komori Corp. (MACH) ....................... 6,000 108
Konica Corp. (LEIS) ....................... 17,000 70
Kubota Corp. (MACH) ....................... 68,000 203
Kuraray Co., Ltd. (APPA) ................... 11,000 132
Kurita Water Industries, Ltd. (POLL) ....... 8,000 144
Kyocera Corp. (ETRN) ....................... 6,700 393
Makita Corp. (CNSU) ....................... 9,000 102
Marubeni Corp. (DIOP) ..................... 62,000 130
Marui Co., Ltd. (RETS) ..................... 12,000 198
Matsushita Electric Industrial Co. (ETRN) . 70,000 1,360
Minebea Co., Ltd. (CHEM) ................... 13,000 145
Mitsubishi Chemical Corp. (CHEM) ........... 61,000 211
Mitsubishi Corp. (DIOP) ................... 55,000 373
Mitsubishi Electric Corp. (ETRN) ........... 88,000 338
Mitsubishi Estate Co., Ltd. (REAL) ......... 49,000 478
Mitsubishi Heavy Industries, Ltd. (MACH) ... 127,000 515
Mitsubishi Logistcs Corp. (TRAN) ........... 7,000 79
Mitsubishi Materials Corp. (PMET) ......... 39,000 87
Mitsubishi Rayon Co., Ltd. (APPA) ......... 27,000 77
Mitsubishi Trust & Banking Corp. (BANK) ... 42,000 408
Mitsui & Co., Ltd. (DIOP) ................. 60,000 419
Mitsui Engineering & Shipbuilding Co.,
Ltd. * (CONS) ............................ 105,000 119
Mitsui Fudosan (REAL) . . . . . . . . . . . 34,000 275
Mitsui Marine & Fire Insurance Co., Ltd.
(INSU) .................................... 30,000 148
56
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Mitsui Mining & Smelting Co., Ltd. (META)... 23,000 $ 119
Mitsui O.S.K. Lines, Ltd. (TRAN) ........... 65,000 140
Mitsukoshi, Ltd. (RETS) ................... 9,000 39
Mori Seiki Co., Ltd. (MACH) ............... 7,000 95
Murata Manufacturing Co., Ltd. (ETRN) ..... 9,000 592
Mycal Corp. (RETS) ......................... 16,000 101
Nagoya Railroad Co. (TRAN) ................. 41,000 135
NAMCO, Ltd. (LEIS) ......................... 4,300 116
Nankai Electric Rail Co., Ltd. (TRAN) ..... 24,000 111
NEC Corp. (COMP) ........................... 57,000 709
NGK Insulators (PART) ..................... 21,000 219
NGK Spark Plug Co. (PART) ................. 16,000 165
Nichido Fire & Marine Insurance Co., Ltd.
(INSU) .................................... 19,000 98
Niigata Engineering Co., Ltd. * (MACH) ..... 60,000 58
Nikon Corp. (LEIS) ......................... 13,000 213
Nippon Comsys Corp. (ENGI) ................. 6,000 97
Nippon Express Co., Ltd. (TRAN) ........... 46,000 276
Nippon Fire & Marine Insurance Co., Ltd.
(INSU) .................................... 27,000 92
Nippon Oil Co., Ltd. (OILX) ............... 63,000 266
Nippon Paper Industries Co. (PAPR) ......... 42,000 219
Nippon Steel Co. (STEE) ................... 248,000 576
Nippon Telegraph & Telephone Corp. (UTIT) . 446 5,198
Nippon Yusen Kabushiki Kaisha (TRAN) ..... 54,000 208
Nissan Motor Acceptance Corp. (FINL) ....... 64,000 306
Nitto Denko Corp. (ETRN) ................... 10,000 210
Nkk Corp. (STEE) ........................... 136,000 111
Nomura Securities Co., Ltd. (FUND) ......... 61,000 715
NSK, Ltd. (META) ........................... 29,000 159
NTN Corp. (METP) ........................... 23,000 79
Obayashi Corp. (CONS) ..................... 22,000 111
Odakyu Electric Railway (TRAN) ............. 44,000 147
Oji Paper Co. (PAPR) ....................... 43,000 249
Okuma Corp. (MACH) ......................... 18,000 84
Olympus Optical Co. (LEIS) ................. 14,000 207
Omron Corp. (ETRN) ......................... 11,000 191
Onward Kashiyama Co., Ltd. (APPA) ......... 10,000 110
Orix Corp. (FINL) ......................... 2,800 250
Osaka Gas Co. (UTIG) ....................... 81,000 275
Pioneer Corp. (ETRN) ....................... 3,000 58
RENOWN, Inc. * (APPA) ..................... 45,000 63
Rohm Co., Ltd. (ETRN) ..................... 4,000 627
Sakura Bank, Ltd. (BANK) ................... 125,000 474
Sankyo Co., Ltd. (HEAL) ................... 14,000 353
Sanrio Co., Ltd. * (CNSU) ................. 11,000 375
Sanyo Electric Co. (ETRN) ................. 75,000 305
Secom Co. (ETRN) ........................... 4,000 417
Sega Enterprises (CNSU) ................... 5,100 67
Sekisui Chemical Co. (CHEM) ............... 26,000 151
Sekisui House, Ltd. (CONS) ................. 31,000 335
Sharp Corp. (ETRN) ......................... 33,000 390
SHIMANO, Inc. (LEIS) ....................... 6,000 142
Shimizu Corp. (CONS) ....................... 29,000 113
Shin-Etsu Chemical Co. (CHEM) ............. 9,000 301
Shionogi & Co., Ltd. (HEAL) ............... 14,000 111
Shiseido Co., Ltd. (CHEM) ................. 15,000 225
Shizuoka Bank, Ltd. (BANK) ................. 19,000 189
SMC Corp. (MACH) ........................... 2,900 325
Sony Corp. (ETRN) ......................... 12,000 1,295
Sumitomo Bank (BANK) ....................... 108,000 1,340
Sumitomo Chemical Co. (CHEM) ............... 59,000 271
Sumitomo Corp. (DIOP) ..................... 47,000 344
Sumitomo Electric Industries (TELE) ....... 30,000 341
Sumitomo Heavy Industry (MACH) ............. 31,000 69
Sumitomo Marine & Fire Insurance Co., Ltd.
(INSU) .................................... 26,000 157
Sumitomo Metal Industries (STEE) ........... 102,000 127
Sumitomo Metal Mining Co. (PMET) ........... 27,000 112
Taisho Pharmaceutical Co., Ltd. (HEAL) ..... 10,000 331
Takashimaya Co. (RETS) ..................... 12,000 115
Takeda Chemical Industries (HEAL) ......... 29,000 1,345
Teijin, Ltd. (APPA) ....................... 41,000 166
Tobu Railway Co., Ltd. (TRAN) ............. 57,000 162
Toho Co., Ltd. (MEDI) ..................... 1,300 190
Tohoku Electric Power (UTIE) ............... 13,000 197
Tokai Bank Ltd. (BANK) ..................... 53,000 302
Tokio Marine & Fire Insurance Co. (INSU) ... 53,000 576
Tokyo Broadcasting (MEDI) ................. 9,000 130
Tokyo Dome Corp. (LEIS) ................... 7,000 41
Tokyo Electric Power (UTIE) ............... 43,300 915
Tokyo Electron, Ltd. (ETRN) ............... 7,000 475
Tokyo Gas Co. (OILX) ....................... 86,000 212
Tokyo Steel Manufacturing Co., Ltd. (STEE) . 8,400 44
Tokyu Corp. (TRAN) ......................... 26,000 66
Toppan Printing Co. (CNSU) ................. 29,000 324
Toray Industries, Inc. (APPA) ............. 50,000 250
Tostem Corp. (CONS) ....................... 11,000 211
Toto, Ltd. (APPL) ......................... 21,000 162
Toyo Seikan Kaisha, Ltd. (CONT) ........... 8,000 180
Toyoda Automatic Loom Works, Ltd. (MACH) ... 11,000 187
Toyota Motor Corp. (AUTO) ................. 134,000 4,243
Uni-Charm Corp. (PAPR) ..................... 3,000 130
UNY Co., Ltd. (RETS) ....................... 8,000 120
Wacoal Corp. (APPA) ....................... 12,000 122
Yamaguchi Bank (BANK) ..................... 11,000 100
Yamaha Corp. (LEIS) ....................... 6,000 72
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) . 10,000 383
Yamato Transport Co., Ltd. (TRAN) ......... 17,000 297
Yokogawa Electric (ETRN) ................... 9,000 53
--------
62,937
Malaysia - 1.0%
Magnum Corp. Berhad (LEIS) ................. 383,000 251
Malayan Banking Berhad (BANK) ............. 136,200 368
57
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Malaysia - Continued
Malaysia International Shipping Berhad
(TRAN) ................................... 62,000 $ 101
RHB Capital Berhad (BANK) ................. 262,000 304
Sime Darby Berhad (FINL) ................... 169,000 200
Telekom Malaysia Berhad (TELS) ............. 108,000 363
Tenaga Nasional Berhad (UTIE) ............. 113,000 234
--------
1,821
Netherlands - 2.6%
ABN Amro Holding NV (BANK) ................. 19,500 422
Akzo Nobel NV (CHEM) ....................... 3,850 162
Elsevier NV (MEDP) ......................... 10,500 122
Heineken NV (FOOD) ......................... 4,375 224
ING Groep NV (BANK) ....................... 10,900 590
Koninklijke (Royal) Philips Electronics NV
(ETRN) .................................... 4,232 417
Koninklijke Ahold NV (RETF) ............... 7,500 258
KPN NV (UTIT) ............................. 7,050 331
Royal Dutch Petroleum Co. (OILS) ........... 24,950 1,461
TNT Post Group NV (TRAN) ................... 7,050 168
Unilever NV - CVA (CNSU) ................... 6,920 466
Wolters Kluwer NV - CVA (MEDP) ............. 4,400 175
--------
4,796
New Zealand - 0.4%
Brierley Investments, Ltd. (LEIS) ......... 295,300 83
Carter Holt Harvey, Ltd. (PAPR) ........... 218,900 262
Telecom Corp. of New Zealand (TELS) ....... 98,600 423
--------
768
Norway - 0.5%
Christiania Bank Og Kreditkasse (BANK) ..... 28,440 102
Den Norske Bank (BANK) ..................... 28,960 96
Dyno Industrier ASA (COMM) ................. 5,120 92
Kvaerner plc (CONS) ....................... 40 1
Leif Hoegh & Co. ASA (TRAN) ............... 7,440 94
Norsk Hydro ASA (DIOP) ..................... 9,340 352
Orkla ASA (DIOP) ........................... 7,920 123
Petroleum Geo-Services (OILE) ............. 3,520 53
Storebrand ASA (INSU) ..................... 13,040 88
--------
1,001
Portugal - 0.4%
Banco Commercial Portugues SA (BANK) ....... 6,600 171
BPI-SGPS SA (FUND) ......................... 4,000 84
BPI-SGPS SA - Reg. New (FUND) ............. 1,798 37
EDP-Electricidade de Portugal SA (UTIE) ... 9,000 162
Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestora de Participacoes Sociais
SA (RETF) ................................. 3,600 119
Portugal Telecom SA - Reg. (UTIT) ......... 5,600 228
801
Singapore - 0.4%
City Developments, Ltd. (READ) ............. 62,000 397
Singapore Telecommunications, Ltd. (TELS) 161,000 276
United Overseas Bank, Ltd. (BANK) ......... 8,000 56
729
Spain - 3.8%
Aguas De Barcelona (FOOD) ................. 28 1
Autopistas Concesionaria Espanola SA (TRAN) 12,860 151
Banco Bilbao Vizcaya SA (BANK) ............. 61,300 885
Banco Santander Central Hispano SA (BANK) . 116,700 1,215
Corporacion Bancaria de Espana SA (BANK) ... 15,300 348
Corporacion Financiera Alba SA (TRAN) ..... 1,000 162
Corporacion Mapfre SA (INSU) ............... 2,100 43
Endesa SA (UTIE) ........................... 28,100 599
Fomento de Construcciones y Contratas SA
(INSU) .................................... 2,300 132
Gas Natural SDG SA (UTIG) ................. 4,600 334
Grupo Dragados, S.A. (CONS) ............... 8,400 99
Iberdrola SA (UTIE) ....................... 27,500 418
Repsol SA (OILX) ........................... 30,000 617
Sociedad General de Aguas de Barcelona SA
(FOOD) .................................... 2,800 146
Telefonica SA (UTIT) ....................... 31,420 1,517
Union Electrica Fenosa SA (UTIE) ........... 12,200 160
Vallehermoso SA (READ) ..................... 8,700 84
Zardoya Otis SA (MACH) ..................... 4,433 111
--------
7,022
Sweden - 1.7%
ABB, Ltd. * (ENGI) ......................... 1,879 176
AstraZeneca Group plc (HEAL) ............. 10,039 391
Drott AB - B Shares (REAL) ............... 3,100 25
ForeningsSparbanken AB (BANK) ............. 8,700 123
Hennes & Mauritz AB - B Shares (RETS) ..... 13,800 341
NetCom Systems, Inc. - Cl. B (TELS) ....... 32 1
Sandvik AB (MACH) ......................... 4,950 108
Securitas AB - B Shares (COMM) ............. 9,200 138
Skand Enskilda Banken - Cl. A (BANK) ....... 10,200 119
Skandia Forsakrings AB (INSU) ............. 9,500 178
Skanska AB (CONS) ......................... 3,100 117
Svenska Cellulosa AB - Cl. B (PAPR) ....... 4,500 117
Svenska Handelsbanken Series A (BANK) ..... 11,250 135
Telefonaktiebolaget LM Ericsson - B Shares
(TELE) .................................... 28,000 899
Volvo AB (AUTO) ........................... 5,750 167
--------
3,035
Switzerland - 1.6%
ABB AG * (ENGI) ........................... 90 133
Credit Suisse Group - Reg. (BANK) ......... 1,970 341
Nestle SA (FOOD) ........................... 260 468
Novartis AG (HEAL) ....................... 380 555
Roche Holding AG (HEAL) ................... 10 165
58
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Switzerland - Continued
Roche Holding AG (HEAL) ................... 45 $ 463
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) ... 110 209
UBS AG - Reg. (BANK) ....................... 1,613 481
Zurich Allied AG (INSU) ................... 340 193
--------
3,008
United Kingdom - 8.8%
Abbey National First Capital BV (BANK) ..... 16,000 300
Allied Zurich AG * (INSU) ................. 18,600 234
Associated British Foods plc (FOOD) ....... 12,848 84
Barclays Bank (BANK) ....................... 18,400 535
Bass plc (FOOD) ........................... 11,100 161
BG plc (OILE) ............................. 46,800 285
BOC Group plc (CHEM) ....................... 7,700 151
Boots Co. plc (RETD) ....................... 12,300 146
British Aerospace plc (AERO) ............... 20,000 130
British Airways plc (TRAN) ................. 18,800 130
British American Tobacco plc * (FOOD) ..... 18,600 175
British Land Co. plc (REAL) ............... 7,200 60
British Petroleum Co. plc (OILX) ........... 64,200 1,150
British Sky Broadcast plc (MEDI) ........... 21,700 201
British Telecommunications plc (TELS) ..... 72,600 1,215
BTR Siebe plc (DIOP) ....................... 23,385 111
Burmah Castrol plc (OILS) ................. 7,250 137
Cable & Wireless plc (TELS) ............... 30,600 390
Cadbury Schweppes plc (FOOD) ............... 26,600 170
Carlton Communications plc (MEDI) ......... 16,300 135
Centrica plc * (UTIG) ..................... 65,700 154
CGU plc (INSU) ............................. 9,300 134
Diageo plc (FOOD) ......................... 44,200 464
EMI Group plc (LEIS) ....................... 14,800 119
General Electric Co. plc (DIOP) ........... 33,200 337
GKN plc (PART) ............................. 10,200 174
Glaxo Wellcome plc (HEAL) ................. 40,610 1,128
Granada Group plc (DIOP) ................... 11,700 217
Great Universital Stores plc (RETS) ....... 13,600 152
HSBC Holdings plc (BANK) ................... 11,600 411
Imperial Chemical Industries plc (CHEM) ... 1,700 17
J. Sainsbury plc (RETF) ................... 24,100 152
Kingfisher plc (RETS) ..................... 18,600 217
Ladbroke Group plc (LEIS) ................. 20,700 83
Land Securities plc (REAL) ................. 8,400 113
Legal & General Group plc (INSU) ......... 62,800 160
Lloyds TSB Group plc (BANK) ............... 63,300 860
Marks & Spencer plc (RETS) ................. 19,900 115
National Grid Group plc (UTIE) ............. 22,500 157
National Power plc (UTIE) ................. 16,500 120
Pearson plc (MEDP) ......................... 8,100 165
Peninsular & Oriental Steam Navigation Co.
(TRAN) .................................... 10,300 154
Prudential Corp. (INSU) ................... 24,400 360
Railtrack Group plc (TRAN) ................. 7,400 151
Rank Group plc (DIOP) ..................... 16,000 64
Reed International plc (MEDP) ............. 15,400 102
Reuters Group plc (BUSI) ................... 18,600 245
Rio Tinto plc - Reg. (DIOP) ............... 12,600 211
Royal & Sun Alliance Insurance Group plc
(INSU) .................................... 17,545 157
Royal Bank of Scotland Group (BANK) ....... 11,500 236
Safeway plc (RETF) ......................... 19,400 77
Schroders (BANK) ........................... 4,050 82
Scottish & Newcastle plc (FOOD) ........... 12,400 130
Scottish Power plc (UTIE) ................. 19,000 163
SmithKline Beecham plc (HEAL) ............. 62,500 813
Tesco plc (RETF) .......................... 79,500 206
Unilever plc (CNSU) ....................... 33,304 295
United Utilities plc (AGRI) ............... 10,400 128
Vodafone Group plc (TELS) ................. 38,500 757
Zeneca Group plc (HEAL) ................... 10,500 406
--------
16,086
--------
TOTAL COMMON STOCK- 96.8% 176,707
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) ................... 45,400 346
Germany - 0.6%
Dyckerhoff AG (CONS) ....................... 260 79
Friedrich Grohe AG (CONS) ................. 400 113
RWE AG (OILX) ............................. 5,470 190
SAP AG - Vorzug (SOFT) ..................... 1,490 595
Volkswagen AG (AUTO) ....................... 3,800 140
--------
1,117
Italy - 0.0%
Fiat SpA (AUTO) ........................... 43,100 69
--------
TOTAL PREFERRED STOCK- 0.8% 1,532
WARRANTS - 0.0%
France - 0.0%
AXA-CTF de Valeur Garant (INSU)
expires 07/31/01 (Cost $17) ............... 172 1
RIGHTS
France - 0.0%
Bouygues SA (CONS)
expires 07/09/99 (Cost $0) ............... 847 2
LVMH (Louis Vuitton Moet Hennessy) (FOOD)
expires 09/21/99 (Cost $0) ............... 230 7
--------
9
59
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
RIGHTS - CONTINUED
Italy - 0.0%
Olivetti SpA (TELS)
expires 07/01/99 (Cost $0) ............... 138,400 $ 19
Spain - 0.0%
Autopistas Cesa (GOVE)
expires 07/05/99 (Cost $0) ............... 12,860 7
--------
TOTAL RIGHTS- 0.0% 35
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.1%
United States - 2.1%
U.S. Treasury Bills
4.57% due 09/16/99 # ..................... $ 40 40
4.64% due 09/16/99 # ..................... 330 327
Investment in joint trading account (Note B)
5.291% due 07/01/99 ....................... 3,438 3,438
--------
3,805
--------- --------
TOTAL INVESTMENTS- 99.7% 182,080
Cash and Receivables, less payables- 0.3% 527
--------- --------
NET ASSETS- 100.0% $182,607
========= ========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $367 have
been segregated to collateralize financial futures contracts.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Abbreviation (000's) Investments
Banks ........................... BANK 25,774 14.5%
Telecommunication Services ..... TELS 13,324 7.5%
Diversified Operations ......... DIOP 10,676 6.0%
Insurance ....................... INSU 10,671 6.0%
Electronic Products and Services. ETRN 10,421 5.8%
Automobile ..................... AUTO 9,418 5.3%
Health Care Products ........... HEAL 8,396 4.7%
Telephone ....................... UTIT 7,274 4.1%
Oil and Natural Gas Exploration
and Production ................. OILX 5,891 3.3%
Transportation Services ......... TRAN 5,143 2.9%
Food, Beverage and Tobacco ..... FOOD 5,128 2.9%
Chemicals ....................... CHEM 4,880 2.7%
Electric Power ................. UTIE 4,849 2.7%
Retail - Department Stores ..... RETS 4,423 2.5%
Construction ................... CONS 4,357 2.4%
Telecommunication Equipment ..... TELE 4,120 2.3%
Oil ............................. OILS 3,728 2.1%
Machinery ....................... MACH 3,481 1.9%
Commercial Services ............. COMM 2,942 1.6%
Retail - Food ................... RETF 2,501 1.4%
Leisure and Recreation ......... LEIS 2,491 1.4%
Media - TV/Radio ............... MEDI 2,229 1.3%
Auto and Truck Parts ........... PART 2,007 1.1%
Electrical Equipment ........... ELEQ 1,980 1.1%
Cosmetics and Personal Care
Products ....................... HNBA 1,895 1.1%
Consumer - Miscellaneous ....... CNSU 1,629 0.9%
Financial Services ............. FINL 1,550 0.9%
Brokerage and Investment
Management ..................... FUND 1,444 0.8%
Computer Software and Services .. SOFT 1,419 0.8%
Shoe and Apparel Manufacturing .. APPA 1,393 0.8%
Steel ........................... STEE 1,280 0.7%
Paper and Forest Products ....... PAPR 1,259 0.7%
Real Estate Development ......... READ 1,153 0.6%
Real Estate Operations ......... REAL 1,135 0.6%
Natural Gas Distribution ....... UTIG 933 0.5%
Engineering and Construction ... ENGI 930 0.5%
Media - Publishing ............. MEDP 727 0.4%
Computer Equipment ............. COMP 709 0.4%
Real Estate Investment Trust ... REIT 538 0.3%
Precious Metals/Gems/Stones ..... PMET 531 0.3%
Metals and Mining ............... META 528 0.3%
Personal and Commercial Lending.. LEND 510 0.3%
Household Appliances/
Furnishings .................... APPL 474 0.3%
Containers ..................... CONT 374 0.2%
Oil - Equipment and Services ... OILE 338 0.2%
Energy - Alternative Source ..... ENER 282 0.2%
Business Services ............... BUSI 245 0.1%
Housing ......................... HOUS 210 0.1%
Retail - Drug Stores ........... RETD 146 0.1%
Pollution Control ............... POLL 143 0.1%
Metal Product and Fabrication ... METP 138 0.1%
Aerospace and Defense ........... AERO 130 0.1%
Agricultural Operations ......... AGRI 128 0.1%
-------- -----
$178,275 100.0%
======== =====
60
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 3.7%
Cable & Wireless Optus, Ltd. * (TELS)........ 105,135 $ 239
Foster's Brewing Group, Ltd. (FOOD).......... 32,000 90
Normandy Mining, Ltd. * (PMET)............... 55,900 37
WMC, Ltd. (DIOP)............................. 24,600 105
Woodside Petroleum, Ltd. (OILX).............. 27,300 185
-------
656
Austria - 0.3%
Flughafen Wien AG (TRAN)..................... 1,300 55
Canada - 1.8%
BCE, Inc. (TELS)............................. 2,100 102
Canadian Pacific, Ltd. (TRAN) ............... 4,300 102
Molson Cos., Ltd. (FOOD)..................... 4,200 76
Noranda, Inc. (META)......................... 2,400 32
-------
312
France - 1.8%
AXA SA (INSU)................................ 709 87
Canal Plus (MEDI)............................ 839 235
-------
322
Germany - 8.5%
Allianz AG - Reg. (INSU)..................... 317 88
BASF AG (CHEM)............................... 4,578 202
Bayer AG (CHEM).............................. 5,363 223
Bayerische Vereinsbank AG (BANK)............. 2,374 154
Heidelberger Druckmaschinen AG (MACH)........ 648 37
Hoechst AG (INSU)............................ 5,050 229
Muenchener Rueckversicherungs-Gesellschaft AG
- REG (INSU)................................ 752 139
Schering AG (HEAL)........................... 1,263 134
VEBA AG (DIOP)............................... 3,052 179
Viag AG (DIOP)............................... 264 125
-------
1,510
Hong Kong - 2.1%
Cheung Kong (Holdings), Ltd. (READ).......... 6,000 54
Citic Pacific, Ltd. (DIOP)................... 43,000 137
Hutchison Whampoa, Ltd. (COMM)............... 16,000 145
New World Development Co., Ltd. (READ)....... 15,121 45
-------
381
Italy - 0.3%
Istituto Nazionale delle Assicurazioni (INSU) 21,900 51
Japan - 10.9%
Bank of Tokyo-Mitsubishi (BANK).............. 6,000 85
Daiwa Securities Co., Ltd. (FUND)............ 31,000 205
Matsushita Electric Industrial Co. (ETRN).... 8,000 155
Mitsubishi Estate Co., Ltd. (REAL)........... 17,000 166
Mitsui Fudosan (REAL)........................ 10,000 81
Nichiei Co., Ltd. (LEND)..................... 800 70
Sanwa Bank, Ltd. (BANK)...................... 8,000 79
Sharp Corp. (ETRN)........................... 17,000 201
Shohkoh Fund & Co., Ltd. (FINL).............. 300 215
Sony Corp. (ETRN)............................ 2,300 248
Sumitomo Metal Mining Co. (PMET)............. 12,000 50
Toshiba Corp. (ETRN)......................... 26,000 186
Yamanouchi Pharmaceutical Co., Ltd. (HEAL)... 5,000 191
-------
1,932
Sweden - 0.3%
Aga AB (CHEM)................................ 4,050 50
Switzerland - 4.9%
Clariant AG (CHEM)........................... 141 58
Nestle SA (FOOD)............................. 98 177
Novartis AG * (HEAL)......................... 103 150
Roche Holding AG (HEAL)...................... 16 164
Swisscom AG - Reg. * (UTIT).................. 478 180
UBS AG - Reg. (BANK)......................... 498 149
-------
878
United Kingdom - 15.7%
BOC Group plc (CHEM)......................... 15,129 296
British Telecommunications plc (TELS)........ 7,595 127
Carlton Communications plc (MEDI)............ 15,821 131
Enterprise Oil plc (OILX).................... 10,390 66
Gallaher Group plc (FOOD).................... 8,000 49
General Electric Co. plc (DIOP).............. 27,608 280
Great Universital Stores plc (RETS).......... 7,083 79
J. Sainsbury plc (RETF)...................... 24,913 157
LASMO plc (OILX)............................. 32,606 74
National Grid Group plc (UTIE)............... 22,756 159
Prudential Corp. (INSU)...................... 11,441 169
Railtrack Group plc (TRAN)................... 8,246 169
Reed International plc (MEDP)................ 18,941 126
Reuters Group plc (BUSI)..................... 19,902 262
Rio Tinto plc - Reg. (DIOP).................. 12,381 207
Shell Transport & Trading Co. plc (OILX)..... 28,603 215
SmithKline Beecham plc (HEAL)................ 13,328 173
United Assurance Group plc (OILE)............ 6,899 45
-------
2,784
United States - 44.7%
Amerada Hess Corp. (OILX).................... 2,200 131
America Online, Inc. * (SOFT)................ 700 77
Anglo American Platinum Corp., Ltd. (PMET)... 5,100 119
Aracruz Celulose SA - ADR (PAPR)............. 5,200 114
AT&T Corp. (UTIT)............................ 3,005 168
AT&T Corp. - Liberty Media Group - Cl. A *
(MEDP)...................................... 6,616 243
Atlantic Richfield Co. (ARCO) (OILS)......... 2,100 175
Azurix Corp. * (AGRI)........................ 4,500 90
Barrick Gold Corp. (PMET).................... 10,900 211
Biogen, Inc. * (HEAS)........................ 2,000 129
Canadian National Railway Co. (TRAN)......... 2,300 154
Comcast Corp. - Cl. A (MEDI)................. 3,900 150
Companhia Vale do Rio Doce - ADR (META)...... 6,300 125
Conoco, Inc. - Cl. A * (OILS)................ 6,400 178
CSX Corp. (TRAN)............................. 5,500 249
61
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United States - Continued
Duke Energy Co. (UTIE)....................... 2,100 $ 114
Electronic Data Systems Corp. (SOFT)......... 5,500 311
Enron Corp. (UTIG)........................... 3,500 286
Equity Residential Properties Trust (REIT)... 3,600 162
Freeport-McMoRan Copper & Gold (PMET)........ 700 13
Homestake Mining Co. (PMET).................. 13,900 114
Immunex Corp. * (HEAL)....................... 2,200 280
International Business Machines Corp. (COMP) 3,600 465
Lockheed Martin Corp. (AERO)................. 4,900 183
MBIA, Inc. (INSU)............................ 1,800 117
Motorola, Inc. (ETRN)........................ 2,000 189
Newmont Mining Corp. (PMET).................. 9,100 181
Northrop Grumman Corp. (AERO)................ 2,700 179
Oracle Corp. * (SOFT)........................ 8,100 301
PacifiCorp (UTIE)............................ 9,700 178
Parametric Technology Co. * (SOFT)........... 4,600 64
Peco Energy Co. (UTIE)....................... 5,200 218
Phillips Petroleum Co. (OILX)................ 3,500 176
Progressive Corp. (INSU)..................... 1,000 145
Prologis Trust (REIT)........................ 1,900 38
SABRE Group Holdings, Inc. * (LEIS).......... 3,000 206
Sterling Commerce, Inc. * (ETRN)............. 4,100 150
Stillwater Mining Co. * (PMET)............... 6,150 201
Sun Microsystems, Inc. * (SOFT).............. 3,100 214
U.S. Airways Group, Inc. * (TRAN)............ 2,400 105
Unocal Corp. (OILX).......................... 3,600 143
UNUM Corp. (INSU)............................ 4,400 241
USEC, Inc. (CONS)............................ 16,900 251
Williams Cos., Inc. (UTIG)................... 5,300 226
XL Capital, Ltd. - Cl. A (INSU).............. 3,100 175
-------
7,939
-------
TOTAL COMMON STOCK- 95.0% 16,870
PREFERRED STOCK - 1.2%
Germany - 1.2%
RWE AG (OILX)................................ 6,000 209
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.5%
Investment in joint repurchase agreement with
Swiss Bank Corp. dated 6/30/99, 4.80% due
7/1/99 (Secured by $1,578 U.S. Treasury
Bonds, 8.825% and 11.25% due 08/15/17 and
02/15/15, Market Value $2,090).............. $ 615 615
--------- -------
TOTAL INVESTMENTS- 99.7% 17,694
Cash and Receivables, less payables- 0.3% 52
--------- -------
NET ASSETS- 100.0% $17,746
========= =======
* Non-income producing security.
ADR -American Depository Receipt
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Abbreviation (000's) Investments
Insurance....................... INSU 1,439 8.4%
Oil and Natural Gas Exploration
and Production................. OILX 1,197 7.0%
Electronic Products and Services ETRN 1,129 6.6%
Health Care Products............ HEAL 1,094 6.4%
Diversified Operations.......... DIOP 1,035 6.1%
Computer Software and Services.. SOFT 966 5.7%
Precious Metals/Gems/Stones..... PMET 925 5.4%
Transportation Services......... TRAN 833 4.9%
Chemicals....................... CHEM 830 4.9%
Electric Power.................. UTIE 669 3.9%
Media - TV / Radio.............. MEDI 516 3.0%
Natural Gas Distribution........ UTIG 512 3.0%
Telecommunication Services...... TELS 469 2.7%
Banks........................... BANK 467 2.7%
Computer Equipment.............. COMP 465 2.7%
Food, Beverage and Tobacco...... FOOD 392 2.3%
Media - Publishing.............. MEDP 369 2.2%
Aerospace and Defense........... AERO 362 2.1%
Oil............................. OILS 354 2.1%
Telephone....................... UTIT 347 2.0%
Business Services............... BUSI 262 1.5%
Construction.................... CONS 251 1.5%
Real Estate Operations.......... REAL 247 1.4%
Financial Services.............. FINL 215 1.3%
Leisure and Recreation.......... LEIS 206 1.2%
Brokerage and Investment
Management..................... FUND 205 1.2%
Real Estate Investment Trust.... REIT 201 1.2%
Retail - Food................... RETF 157 0.9%
Metals and Mining............... META 157 0.9%
Commercial Services............. COMM 145 0.8%
Health Care Services............ HEAS 129 0.8%
Paper and Forest Products....... PAPR 114 0.7%
Real Estate Development......... READ 99 0.6%
Agricultural Operations......... AGRI 90 0.5%
Retail - Department Stores...... RETS 79 0.5%
Personal and Commercial Lending LEND 70 0.4%
Oil - Equipment and Services.... OILE 45 0.3%
Machinery....................... MACH 37 0.2%
------- -----
$17,079 100.0%
======= =====
62
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 1.7%
Avis Rental A Car, Inc. * ................. 7,500 $ 218
CSK Auto Corp. ............................ 26,100 705
O'Reilly Automotive, Inc. * ............... 13,800 695
--------
1,618
Automobile - 0.6%
United Rentals, Inc. *..................... 19,900 587
Banks - 0.5%
Greater Bay Bancorp ....................... 12,800 426
Brokerage and Investment Management - 2.0%
Affiliated Managers Group, Inc. *.......... 19,900 601
Charles River Associates, Inc. ............ 10,600 266
Hambrecht & Quist Group *.................. 13,200 490
Raymond James Financial, Inc. ............. 19,900 476
--------
1,833
Business Services - 5.0%
AHL Services, Inc. *....................... 14,900 372
Coinstar, Inc. *........................... 38,500 1,104
Corporate Executive Board Co. *............ 11,300 402
Forrester Research, Inc. *................. 24,300 608
Interim Services, Inc. .................... 24,500 505
Metzler Group, Inc. *...................... 13,350 369
On Assignment, Inc. *...................... 18,700 489
ProBusiness Services, Inc. *............... 9,200 330
Professional Detailing, Inc. .............. 14,400 338
Superior Consultant Holdings Corp. *....... 6,700 165
--------
4,682
Chemicals - 0.5%
OM Group, Inc. ............................ 14,000 483
Commercial Services - 7.8%
Abacus Direct Corp. *...................... 10,600 970
Dendrite International, Inc. *............. 13,500 488
G & K Services, Inc. ...................... 10,100 529
Intraware, Inc. *.......................... 8,500 204
ITT Educational Services, Inc. ............ 26,700 696
Mail-Well Holdings, Inc. *................. 24,600 398
Modem Media Poppe Tyson, Inc. *............ 17,200 393
Nielsen Media Research, Inc. .............. 20,000 585
Profit Recovery Group International, Inc. * 17,800 842
Quanta Services, Inc. *.................... 20,900 920
Steiner Leisure, Ltd. *.................... 24,800 752
Tetra Tech, Inc. *......................... 15,562 257
Veritas DGC, Inc. *........................ 11,200 205
--------
7,239
Computer Equipment - 3.0%
Apex PC Solutions, Inc. *.................. 29,400 603
National Computer Systems, Inc. *.......... 25,000 844
Network Appliance, Inc. *.................. 14,400 804
PRI Automation, Inc. *..................... 14,900 540
--------
2,791
Computer Software and Services - 14.6%
AboveNet Communications, Inc. *............ 10,800 436
Advent Software, Inc. *.................... 11,100 744
Aspect Development, Inc. *................. 32,400 599
BackWeb Technologies, Ltd. *............... 300 8
BindView Development Corp. ................ 23,100 549
Bottomline Technologies, Inc. *............ 6,400 339
Cognizant Technology Solutions Corp. ...... 26,500 691
drkroop.com, Inc *......................... 1,000 16
Exodus Communications, Inc. *.............. 5,300 636
F5 Networks, Inc. *........................ 12,200 500
Fundtech, Ltd. *........................... 28,900 750
IMRglobal Corp. *.......................... 24,425 470
International Network Services *........... 11,550 466
internet.com Corp. *....................... 1,200 15
Launch Media, Inc. *....................... 31,500 563
Marimba, Inc. *............................ 2,600 137
Media Metrix, Inc. *....................... 6,800 362
Micromuse, Inc. *.......................... 16,900 843
Mpath Interactive, Inc. *.................. 8,300 183
Multex.com, Inc. *......................... 18,000 470
National Instruments Corp. *............... 12,700 513
NEON Systems, Inc. *....................... 900 30
Network Event Theater, Inc. *.............. 41,500 695
NextCard, Inc. *........................... 400 13
ONYX Software Corp. *...................... 1,000 22
Persistence Software, Inc. *............... 400 5
Phone.com, Inc. *.......................... 300 17
Prodigy Communications Corp. *............. 12,700 329
PSINet, Inc. .............................. 9,000 394
Sagent Technology, Inc. *.................. 27,500 237
Scient Corp. *............................. 600 28
Silknet Software, Inc. *................... 300 12
Software.com, Inc. *....................... 3,800 88
TenFold Corporation *...................... 3,200 102
Verio, Inc. ............................... 9,700 674
Viant Corp. *.............................. 2,000 70
Vignette Corp. *........................... 1,600 120
Whittman-Hart, Inc. *...................... 33,400 1,060
Wind River Systems *....................... 24,950 401
--------
13,587
Construction - 0.5%
Crossmann Communities, Inc. *.............. 16,000 465
Consumer - Miscellaneous - 1.9%
Catalina Marketing Corp. *................. 7,200 663
GoTo.com, Inc. *........................... 2,000 56
Rental Service Corp. *..................... 23,000 658
Strayer Education, Inc. ................... 13,450 413
--------
1,790
63
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Containers - 0.2%
Ivex Packaging Corp. * .................... 9,600 $ 211
Diversified Operations - 0.9%
Waste Connections, Inc. * ................. 27,600 842
Electrical Equipment - 0.8%
Micrel, Inc. * ............................ 9,500 703
Electronic Products and Services - 10.5%
Alpha Industries, Inc. .................... 15,000 715
Atmi, Inc. * .............................. 23,000 684
Credence Systems Corp. * .................. 20,200 750
DuPont Photomasks, Inc. * ................. 11,600 555
Flextronics International Ltd. ............ 14,000 777
Gentex Corp. * ............................ 22,400 627
GlobeSpan, Inc. * ......................... 400 16
Imax Corp. * .............................. 24,600 554
INSpire Insurance Solutions, Inc. * ....... 39,900 579
MedQuist, Inc. * .......................... 18,500 810
Novellus Systems, Inc. * .................. 6,800 464
PLX Technology, Inc. * .................... 23,200 1,099
PMC-Sierra, Inc. * ........................ 7,200 424
QLogic Corp. * ............................ 7,100 937
Semtech Corp. * ........................... 13,800 719
--------
9,710
Financial Services - 1.2%
AmeriCredit Corp. * ....................... 30,400 486
Medallion Financial Corp. ................. 32,200 614
--------
1,100
Food, Beverage and Tobacco - 1.3%
American Italian Pasta Co. * .............. 25,200 766
Beringer Wine Estates Holdings * .......... 10,900 455
--------
1,221
Health Care Products - 7.4%
Alkermes, Inc. * .......................... 19,200 444
Alpharma, Inc. - Cl A ..................... 13,700 487
Andrx Corp. * ............................. 12,600 972
Gilead Sciences, Inc. * ................... 11,200 585
Human Genome Sciences, Inc. * ............. 10,800 427
Inhale Therapeutic Systems, Inc. * ........ 20,500 488
Millennium Pharmaceuticals, Inc. * ........ 10,700 385
MiniMed, Inc. * ........................... 9,200 708
Perclose, Inc. * .......................... 13,800 663
Pharmacyclics, Inc. * ..................... 22,100 619
Renal Care Group, Inc. * .................. 25,000 647
Xomed Surgical Products, Inc. * ........... 9,400 458
--------
6,883
Health Care Services - 1.1%
Idec Pharmaceuticals Corp. ................ 12,700 979
Household Appliances / Furnishings - 1.1%
Ethan Allen Interiors, Inc. ............... 16,350 617
SLI, Inc. * ............................... 14,600 394
--------
1,011
Insurance - 0.4%
Medical Assurance, Inc. ................... 13,700 387
Leisure and Recreation - 1.7%
Cinar Films, Inc. * ....................... 30,700 752
Premier Parks, Inc. * ..................... 23,700 871
--------
1,623
Machinery - 1.0%
JLG Industries, Inc. ...................... 22,800 464
Terex Corp. * ............................. 15,000 457
--------
921
Media - Publishing - 0.6%
John Wiley & Sons, Inc. - Cl. A ........... 31,200 550
Media - TV / Radio - 6.3%
Adelphia Communications Corp. - Cl. A ..... 12,100 770
Citadel Communications Corp. * ............ 22,300 807
Cumulus Media, Inc. - Cl. A * ............. 26,700 584
Entercom Communications Corp. * ........... 7,300 312
Getty Images, Inc. ........................ 29,500 557
Hispanic Broadcasting Corp. * ............. 9,900 751
Metro Networks, Inc. * .................... 13,300 710
Pegasus Communications Corp. * ............ 19,800 781
Radio One, Inc. * ......................... 11,800 548
--------
5,820
Metals and Mining - 0.7%
Maverick Tube Corp. * ..................... 43,800 610
Oil - Equipment and Services - 0.9%
Dril Quip, Inc. * ......................... 17,900 410
Friede Goldman International, Inc. * ...... 12,800 178
Newpark Resources, Inc. * ................. 25,700 228
--------
816
Oil and Natural Gas Exploration and Production - 1.1%
Newfield Exploration Co. * ................ 19,900 566
Stone Energy Corp. * ...................... 10,200 432
--------
998
Personal and Commercial Lending - 1.6%
DVI, Inc. * ............................... 30,000 514
Metris Cos., Inc. ......................... 22,800 929
--------
1,443
Retail - Department Stores - 5.7%
99 Cents Only Stores * .................... 14,125 705
Bebe Stores, Inc. * ....................... 19,000 646
David's Bridal, Inc. * .................... 24,200 377
Dollar Thrifty Automotive Group, Inc. * ... 22,000 511
Insight Enterprises, Inc. * ............... 19,400 480
Linens 'N Things, Inc. * .................. 15,900 696
64
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Retail - Department Stores - Continued
Noodle Kidoodle, Inc. * ................... 4,500 $ 24
Pacific Sunwear of California, Inc. * ..... 27,900 680
Sunglass Hut International, Inc. * ....... 26,100 449
Wet Seal, Inc. - Cl. A * ................. 17,300 495
Zany Brainy, Inc * ....................... 28,300 274
--------
5,337
Retail - Drug Stores - 0.3%
Duane Reade, Inc. * ....................... 10,200 312
Retail - Food - 3.9%
Applebee's International, Inc. ........... 21,900 660
Buca, Inc. * ............................. 4,500 74
Garden Fresh Restaurant Corp. ............. 30,700 575
P.F. Chang's China Bistro, Inc. * ......... 14,800 320
RARE Hospitality International, Inc. * ... 23,800 607
Whole Foods Market, Inc. * ............... 12,900 620
Wild Oats Markets, Inc. * ................. 25,400 771
--------
3,627
Shoe and Apparel Manufacturing - 0.6%
Cutter & Buck, Inc. * ..................... 33,900 572
Telecommunication Equipment - 4.7%
Crown Castle International Corp. ......... 39,000 812
Microwave Power Devices, Inc. * ........... 43,800 673
Powertel, Inc. ........................... 13,100 391
Powerwave Technologies, Inc. * ........... 23,500 758
RF Micro Devices, Inc. * ................. 15,900 1,187
Terayon Communication Systems, Inc. * ..... 9,700 542
--------
4,363
Telecommunication Services - 3.1%
Allegiance Telecom, Inc. * ............... 21,300 1,169
Copper Mountain Networks, Inc. * ......... 500 39
Intermedia Communications, Inc. * ......... 21,300 639
Latitude Communications, Inc. * ........... 14,600 190
Orckit Communications, Ltd. * ............. 20,500 507
Winstar Communications, Inc. * ........... 6,800 331
--------
2,875
Telephone - 1.0%
NEXTLINK Communications, Inc. * ........... 12,600 937
Transportation Services - 2.7%
Eagle USA Airfreight, Inc. * ............. 20,100 853
Expeditors International of Washington,
Inc. .................................... 25,000 681
Forward Air Corp. * ....................... 17,700 498
Motivepower Industries, Inc. * ........... 26,850 477
--------
2,509
--------
TOTAL COMMON STOCK- 98.9% 91,861
SHORT-TERM INVESTMENTS - 2.2%
Investment in joint repurchase
agreement with Swiss Bank Corp.
dated 6/30/99, 4.80% due 7/1/99
(Secured by $1,578 U.S. Treasury
Bonds, 8.875% and 11.25% due
08/15/17 and 02/15/15,
Market Value $2,090)....................... $ 2,049 $ 2,049
-------- -------
TOTAL INVESTMENTS- 101.1% 93,910
Payables, less cash and receivables- (1.1)% (1,002)
-------- -------
NET ASSETS- 100.0% $92,908
======== =======
* Non-income producing security.
See notes to financial statements.
65
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.5%
Amcor, Ltd. (CONT)............................... 3,200 $ 18
AMP, Ltd. * (INSU)............................... 3,000 33
Brambles Industries, Ltd. (DIOP)................. 1,200 32
Broken Hill Proprietary Co., Ltd. (DIOP)......... 6,400 74
CSR, Ltd. (CONS)................................. 9,000 26
David Jones, Ltd. (RETS)......................... 9,200 9
Lend Lease Corp. (FINL).......................... 2,300 32
National Australia Bank, Ltd. (BANK)............. 6,200 102
News Corp., Ltd. (MEDI).......................... 8,900 76
Orica, Ltd. (DIOP)............................... 2,500 14
Qantas Airways, Ltd. (TRAN)...................... 12,882 42
QBE Insurance Group, Ltd. (INSU)................. 6,180 23
Rio Tinto, Ltd. (PMET)........................... 2,700 44
Santos, Ltd. (OILX).............................. 6,100 20
Telstra Corp., Ltd. (TELS)....................... 16,200 93
Westpac Banking Corp., Ltd. (BANK)............... 9,600 62
WMC, Ltd. (DIOP)................................. 5,200 22
Woolworth's, Ltd. (RETS)......................... 4,900 16
-------
738
Austria - 0.1%
Austria Tabak AG (FOOD).......................... 400 23
Belgium - 0.6%
Fortis (B) (INSU)................................ 4,338 136
KBC Bancassurance Holding NV (BANK).............. 743 44
-------
180
Canada - 1.2%
Agrium, Inc. (AGRI).............................. 1,600 14
Alcan Aluminum, Ltd. (META)...................... 800 25
Bank of Montreal (BANK).......................... 500 18
Canadian National Railway Co. (TRAN)............. 500 34
Canadian Pacific, Ltd. (TRAN).................... 1,400 33
Hudson's Bay Co. (RETS).......................... 1,500 17
Imasco, ltd. (DIOP).............................. 800 22
Imperial Oil, Ltd. (OILX)........................ 1,200 23
Magna International, Inc. (AUTO)................. 200 11
Newbridge Networks Corp. (TELE).................. 500 14
NOVA Chemicals Corp. (CHEM)...................... 848 20
Price REIT, Inc. (REIT).......................... 200 10
Royal Bank of Canada (BANK)...................... 500 22
Seagram Co., Ltd. (DIOP)......................... 300 15
Shaw Communications, Inc. (MEDI)................. 1,000 40
Transcanada Pipelines, Ltd. (OILE)............... 1,344 19
Westcoast Energy, Inc. (UTIG).................... 500 10
-------
347
Denmark - 0.2%
Tele Danmark A/S (TELS).......................... 1,000 49
Finland - 0.9%
Merita, Ltd. - Cl. A (BANK) ..................... 10,400 59
Nokia Oyj (TELE)................................. 1,400 123
UPM-Kymmene Corp. * (PAPR)....................... 3,000 86
-------
268
France - 4.3%
Aerospatiale Matra * (AERO)...................... 1,790 41
Air Liquide (CHEM)............................... 440 69
Banque Nationale de Paris (BANK)................. 778 65
Carrefour SA (RETF).............................. 420 62
Compagnie de St. Gobain (CONS)................... 296 47
Elf Aquitaine (OILX)............................. 780 115
France Telecom (TELS)........................... 1,220 92
Group Danone * (FOOD)............................ 340 88
Groupe Air France * (TRAN)....................... 2,630 47
Michelin (PART).................................. 858 35
Rhone-Poulenc SA (BANK).......................... 1,250 57
SEITA (FOOD)..................................... 2,527 146
Societe Generale de Paris (BANK)................. 325 57
Suez Lyonnaise des Eaux (DIOP)................... 445 80
Thomson CFS (ETRN)............................... 2,770 96
Total SA - Cl. B (OILX).......................... 606 78
Vivendi (DIOP)................................... 800 65
-------
1,240
Germany - 4.9%
Allianz AG - Reg. (INSU)......................... 418 116
Bayer AG (CHEM).................................. 4,000 166
Continental AG (PART)............................ 2,450 58
DaimlerChrysler AG * (AUTO)...................... 1,372 119
Deutsche Bank AG (BANK).......................... 2,366 144
Deutsche Telekom AG (TELS)....................... 2,650 111
Dresdner Bank AG (BANK).......................... 2,500 98
Mannesmann AG (MACH)............................. 950 142
SAP AG (SOFT).................................... 100 34
Siemens AG (DIOP)................................ 2,150 166
VEBA AG (DIOP)................................... 3,920 230
Volkswagen AG (AUTO)............................. 670 43
-------
1,427
Italy - 1.3%
Assicurazioni Generali (INSU).................... 2,900 101
ENI SpA (OILS)................................... 24,000 143
Istituto Bancario San Paolo di Torino (BANK) 4,135 56
La Rinascente SpA (CONS)......................... 5,817 44
Montedison SpA (CHEM)............................ 25,792 42
-------
386
Japan - 11.2%
Acom Co., Ltd. (LEND)............................ 700 60
Amada Co., Ltd (MACH)............................ 4,000 28
Bank of Tokyo-Mitsubishi (BANK).................. 6,000 85
Bridgestone Corp. (PART)......................... 2,000 61
Canon Sales Co., Inc. (COMM)..................... 100 2
Canon, Inc. (COMM)............................... 3,000 86
Citizen Watch Co., Ltd. (RETS)................... 3,000 26
Dai Nippon Printng Co., Ltd. (COMM).............. 3,000 48
Daiichi Pharmaceutical Co., Ltd. (HEAL).......... 3,000 47
Daikin Industries, Ltd. (CONS)................... 7,000 81
Daiwa House Industry Co., Ltd. (HOUS)............ 2,000 21
Denso Corp. (ETRN)............................... 3,000 61
66
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
East Japan Railway Co. (TRAN)..................... 10 $ 54
Fanuc, Ltd. (ELEQ)................................ 1,200 65
Fuji Photo Film (LEIS)............................ 1,000 38
Fujitsu, Ltd. (ELEQ).............................. 6,000 121
Honda Motor Co. (AUTO)............................ 3,000 127
Hoya Corp. (ETRN)................................. 1,000 56
Ito-Yokado Co., Ltd. (RETS)....................... 2,000 134
Kaneka Corp. (CHEM)............................... 4,000 38
KAO Corp. (HNBA).................................. 2,000 56
Kirin Brewery Co. (FOOD).......................... 4,000 48
Kokuyo Co. (COMM)................................. 1,000 16
Kuraray Co., Ltd. (APPA).......................... 4,000 48
Marui Co., Ltd. (RETS)............................ 2,000 33
Matsushita Electric Industrial Co. (ETRN)......... 4,000 78
Mitsubishi Corp. (DIOP)........................... 12,000 81
Mitsubishi Estate Co., Ltd. (REAL)................ 7,000 68
NGK Insulators (PART)............................. 6,000 63
Nintendo Corp., Ltd. (LEIS)....................... 500 70
Nippon Meat Packers, Inc. (FOOD).................. 3,000 39
Nippon Steel Co. (STEE)........................... 25,000 58
Nippon Telegraph & Telephone Corp. (UTIT)......... 16 187
Nomura Securities Co., Ltd. (FUND)................ 6,000 70
Obayashi Corp. (CONS)............................. 6,000 30
Osaka Gas Co. (UTIG).............................. 16,000 54
Sankyo Co., Ltd. (HEAL)........................... 3,000 76
Sanwa Bank, Ltd. (BANK)........................... 4,000 39
Secom Co. (ETRN).................................. 1,000 104
Sekisui House, Ltd. (CONS)........................ 4,000 43
Shin-Etsu Chemical Co. (CHEM)..................... 1,000 34
Sony Corp. (ETRN)................................. 800 86
Sumitomo Bank (BANK).............................. 4,000 50
Sumitomo Chemical Co. (CHEM)...................... 9,000 41
Sumitomo Electric Industries (TELE)............... 4,000 46
Takeda Chemical Industries (HEAL)................. 2,000 93
TDK Corp. (COMP).................................. 1,000 92
Tokio Marine & Fire Insurance Co. (INSU).......... 3,000 33
Tokyo Electric Power (UTIE)....................... 3,700 78
Toshiba Corp. (ETRN).............................. 9,000 64
Toyota Motor Corp. (AUTO)......................... 3,000 95
Yamato Transport Co., Ltd. (TRAN)................. 2,000 35
-------
3,247
Netherlands - 2.3%
Elsevier NV (MEDP)................................ 8,400 97
Heineken NV (FOOD)................................ 650 33
ING Groep NV (BANK)............................... 3,874 210
KPN NV (UTIT)..................................... 2,434 114
Royal Dutch Petroleum Co. (OILS).................. 2,200 129
Unilever NV - CVA (CNSU).......................... 1,093 74
-------
657
New Zealand - 0.3%
Auckland International (TRAN)..................... 6,000 9
Carter Holt Harvey, Ltd. (PAPR)................... 8,500 10
Fletcher Challenge Paper (PAPR)................... 12,800 10
Lion Nathan , Ltd. (FOOD)......................... 6,200 15
Telecom Corp. of New Zealand (TELS)............... 11,700 50
-------
94
Norway - 0.2%
Norsk Hydro ASA (DIOP)............................ 600 23
Norske Skogsindustrier ASA - Cl. A (PAPR)......... 800 29
-------
52
Portugal - 0.2%
EDP-Electricidade de Portugal, SA (UTIE).......... 3,100 56
Singapore - 0.4%
Singapore Press Holdings, Ltd. (MEDP)............. 4,948 84
United Overseas Bank, Ltd. (BANK)................. 6,000 42
-------
126
Spain - 1.0%
Banco Popular Espanol SA (BANK)................... 803 58
Banco Santander Central Hispano SA (BANK)......... 8,890 92
Endesa SA (UTIE).................................. 2,873 61
Telefonica SA (UTIT).............................. 1,982 96
-------
307
Sweden - 1.3%
Electrolux AB - Ser. B (APPL)..................... 5,450 114
Telefonaktiebolaget LM Ericsson - B Shares
(TELE)........................................... 2,810 90
Investor AB - B Shares (FUND)..................... 4,960 55
Nordbanken Holding (BANK)......................... 7,290 43
Swedish Match (FOOD).............................. 19,020 68
-------
370
Switzerland - 2.6%
Adecco SA - Reg. (COMM)........................... 32 17
Holderbank Financiere Glarus AG - Cl. B
(CONS)........................................... 50 59
Nestle SA (FOOD).................................. 112 202
Novartis AG (HEAL)............................... 116 169
Roche Holding AG (HEAL)........................... 15 154
Schweizerische
Rueckversicherungs-Gesellschaft (INSU)........... 17 33
Swisscom AG - Reg. * (UTIT)....................... 303 114
-------
748
United Kingdom - 10.8%
Allied Zurich AG * (INSU)......................... 5,950 75
Barclays Bank (BANK).............................. 3,000 87
BOC Group plc (CHEM).............................. 8,000 157
Boots Co. plc (RETD).............................. 5,000 59
British Petroleum Co. plc (OILX).................. 12,987 233
British Telecommunications plc (TELS)............. 5,000 84
Charter plc (DIOP)................................ 11,372 66
British Airways plc (TRAN)........................ 8,000 55
Coats Viyella plc (APPA).......................... 37,500 30
Diageo plc (FOOD)................................. 8,739 92
67
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
FKI plc (DIOP)..................................... 32,000 $ 99
General Electric Co. plc (DIOP).................... 15,400 156
Glaxo Wellcome plc (HEAL).......................... 6,300 175
Greenalls Group, plc (RETF)........................ 8,400 47
House of Fraser plc (RETS)......................... 19,000 26
J. Sainsbury plc (RETF)............................ 2,000 13
Lloyds TSB Group plc (BANK)........................ 13,000 177
Marks & Spencer plc (RETS)......................... 29,000 167
Mirror Group plc (MEDP)............................ 20,000 78
National Power plc (UTIE).......................... 12,000 87
Nycomed Amersham plc (HEAL)........................ 10,000 70
Peninsular & Oriental Steam Navigation Co.
(TRAN)............................................ 3,654 55
Prudential Corp. (INSU)............................ 10,000 147
Reckitt & Colman plc (HNBA)........................ 5,000 52
Reed International plc (MEDP)...................... 9,000 60
Rio Tinto plc - Reg. (DIOP)........................ 8,900 149
RJB Mining plc (META).............................. 15,500 13
Royal & Sun Alliance Insurance Group plc
(INSU)............................................ 4,495 40
Scottish and Southern Energy plc (UTIE)............ 12,900 132
Tesco plc (RETF)................................... 48,000 125
Thames Water plc (AGRI)............................ 3,583 57
Unilever plc (CNSU)................................ 6,000 53
United News & Media plc (MEDP)..................... 9,000 87
Yorkshire Water plc (AGRI)......................... 7,000 49
Zeneca Group plc (HEAL)............................ 2,028 78
-------
3,130
-------
TOTAL COMMON STOCK- 46.3% 13,445
PREFERRED STOCK - 0.1%
Australia - 0.1%
News Corp., Ltd. (MEDI)............................ 4,000 31
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Australia - 4.1%
Queensland Treasury Corp. - Bonds (FORG)
6.5% due 06/14/05................................. $ 1,800 1,205
Canada - 4.1%
Government of Canada (GOVF)
4.25% due 12/01/21................................ 735 575
8.75% due 12/01/05................................ 780 621
-------
1,196
Denmark - 2.9%
Kingdom of Denmark - Bonds (GOVF)
7.0% due 11/10/24................................. 1,600 255
9.0% due 11/15/00................................. 3,900 579
-------
834
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
France - 6.3%
Government of France - Bonds (GOVF)
5.5% due 10/12/01................................. $ 1,230 $ 1,327
5.5% due 04/25/29................................. 480 498
-------
1,825
Germany - 5.7%
DePfa Deutsche Pfandbriefbank AG (BANK)
4.75% due 03/20/03................................ 95 101
Federal Republic of Germany - Debs. (GOVF)
6.0% due 06/20/16................................. 378 431
Treuhandanstalt (FORG).............................
7.375% due 12/02/02............................... 970 1,115
-------
1,647
Italy - 2.3%
Republic of Italy (GOVF)
9.5% due 02/01/06................................. 530 681
Spain - 4.8%
Government of Spain (GOVF)
8.8% due 04/30/06................................. 1,090 1,401
Sweden - 3.1%
Government of Sweden - Bonds (GOVF)
5.5% due 04/12/02................................. 5,000 609
Government of Sweden - Debs. (GOVF)
6.75% due 05/05/14................................ 2,100 280
-------
889
United Kingdom - 4.3%
U.K. Treasury - Bonds (GOVF)
7.5% due 12/07/06................................. 700 1,245
United States - 9.0%
U.S. Treasury - Inflation Index (GOVE)
3.625% due 01/15/08............................... 1,318 1,281
3.625% due 04/15/28............................... 772 728
3.875% due 01/15/09............................... 630 622
-------
2,631
-------
TOTAL PUBLICLY-TRADED BONDS- 46.6% 13,554
SHORT-TERM INVESTMENTS - 3.3%
Investment in joint trading account (Note B)
5.291% due 07/01/99............................... 953 953
------- -------
TOTAL INVESTMENTS- 96.3% 27,983
Cash and Receivables, less payables- 3.7% 1,084
------- -------
NET ASSETS- 100.0% $29,067
======= =======
* Non-income producing security.
See notes to financial statements.
68
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Abbreviation (000's) Investments
Foreign Governmental.................. GOVF 8,503 31.5%
U.S. Governmental..................... GOVE 2,631 9.7%
Foreign .............................. FORG 2,320 8.6%
Banks................................. BANK 1,769 6.6%
Diversified Operations................ DIOP 1,294 4.8%
Health Care Products.................. HEAL 862 3.2%
Food, Beverage and Tobacco............ FOOD 754 2.8%
Insurance............................. INSU 736 2.7%
Chemicals............................. CHEM 567 2.1%
Electronic Products and Services...... ETRN 546 2.0%
Telephone............................. UTIT 510 1.9%
Telecommunication Services............ TELS 479 1.8%
Oil and Natural Gas Exploration
and Production....................... OILX 468 1.7%
Retail - Department Stores............ RETS 429 1.6%
Electric Power........................ UTIE 414 1.5%
Media - Publishing.................... MEDP 406 1.5%
Automobile............................ AUTO 395 1.5%
Transportation Services............... TRAN 364 1.4%
Construction.......................... CONS 331 1.2%
Telecommunication Equipment........... TELE 273 1.0%
Oil................................... OILS 272 1.0%
Retail - Food......................... RETF 246 0.9%
Auto and Truck Parts.................. PART 216 0.8%
Electrical Equipment.................. ELEQ 185 0.7%
Machinery ............................ MACH 170 0.6%
Commercial Services................... COMM 169 0.6%
Media - TV / Radio.................... MEDI 146 0.5%
Paper and Forest Products............. PAPR 135 0.5%
Consumer - Miscellaneous.............. CNSU 127 0.5%
Brokerage and Investment
Management........................... FUND 126 0.5%
Agricultural Operations............... AGRI 120 0.4%
Household Appliances /
Furnishings.......................... APPL 114 0.4%
Leisure and Recreation................ LEIS 108 0.4%
Cosmetics and Personal Care
Products............................. HNBA 108 0.4%
Computer Equipment.................... COMP 92 0.3%
Shoe and Apparel Manufacturing........ APPA 78 0.3%
Real Estate Operations................ REAL 68 0.3%
Natural Gas Distribution.............. UTIG 64 0.2%
Personal and Commercial Lending....... LEND 61 0.2%
Retail - Drug Stores.................. RETD 59 0.2%
Steel................................. STEE 58 0.2%
Precious Metals/Gems/Stones........... PMET 44 0.2%
Aerospace and Defense ................ AERO 41 0.2%
Metals and Mining..................... META 38 0.1%
Computer Software and Services........ SOFT 34 0.1%
Financial Services.................... FINL 32 0.1%
Housing............................... HOUS 21 0.1%
Oil - Equipment and Services.......... OILE 19 0.1%
Containers............................ CONT 18 0.1%
Real Estate Investment Trust.......... REIT 10 0.0%
------- -----
$27,030 100.0%
======= =====
69
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Banks - 1.8%
Firstar Corp.................................. 116,075 $ 3,250
Brokerage and Investment Management - 2.5%
Charles Schwab Corp........................... 41,980 4,613
Commercial Services - 6.6%
Apollo Group, Inc. - Cl. A *.................. 354,344 9,412
Capita Group plc.............................. 110,285 1,141
Concord EFS, Inc. *........................... 29,485 1,248
Lamar Advertising Co. *....................... 4,180 171
---------
11,972
Computer Equipment - 3.2%
Juniper Networks, Inc. *...................... 3,645 543
VERITAS Software Corp. *...................... 55,055 5,227
---------
5,770
Computer Software and Services - 11.0%
Concentric Network Corp. *.................... 42,770 1,700
Exodus Communications, Inc. *................. 66,680 7,998
PSINet, Inc. *................................ 121,290 5,306
Verio, Inc.................................... 18,380 1,277
VeriSign, Inc................................. 43,595 3,760
---------
20,041
Electric Power - 1.5%
AES Corp. *................................... 46,725 2,716
Electronic Products and Services - 7.9%
Gemstar International Group, Ltd. *........... 52,155 3,403
Uniphase Corp. *.............................. 13,605 2,259
Vitesse Semiconductor Corp. *................. 129,370 8,724
---------
14,386
Financial Services - 4.7%
Paychex, Inc.................................. 265,402 8,460
Health Care Products - 7.2%
MedImmune, Inc. *............................. 45,805 3,103
MiniMed, Inc. *............................... 14,095 1,085
QLT PhotoTherapeutics, Inc. *................. 35,860 1,972
Sepracor, Inc. *.............................. 48,845 3,969
Watson Pharmaceuticals, Inc. *................ 84,375 2,958
---------
13,087
Leisure and Recreation - 1.0%
Premier Parks, Inc. *......................... 47,675 1,752
Media - TV / Radio - 14.8%
Adelphia Communications Corp. - Cl. A......... 63,330 4,030
Chancellor Media Corp. *...................... 56,460 3,113
Citadel Communications Corp. *................ 44,710 1,618
Clear Channel Communications, Inc. *.......... 50,960 3,513
Entercom Communications Corp. *............... 48,965 2,093
Hispanic Broadcasting Corp. *................. 103,385 7,844
Rogers Communications, Inc. - Cl. B *......... 136,480 2,209
Univision Communications, Inc. - Cl. A *...... 36,653 2,419
---------
26,839
Retail - Department Stores - 8.7%
Amazon.com, Inc. *............................ 75,515 9,449
eBay, Inc. *.................................. 39,235 5,924
Fastenal Co................................... 7,305 383
---------
15,756
Retail - Food - 1.1%
PizzaExpress plc.............................. 132,256 1,918
Telecommunication Equipment - 5.0%
American Tower Corp. - Cl. A.................. 78,110 1,875
Crown Castle International Corp............... 249,670 5,196
E-Tek Dynamics, Inc. *........................ 43,485 2,068
---------
9,139
Telecommunication Services - 10.8%
AT&T Canada, Inc. *........................... 55,080 3,529
Level 3 Communications, Inc. *................ 53,385 3,206
McLeodUSA, Inc. - Cl. A *..................... 116,405 6,402
NTL, Inc. *................................... 50,565 4,358
Sprint PCS *.................................. 37,605 2,148
---------
19,643
Telephone - 7.3%
Metromedia Fiber Network, Inc. - Cl. A *...... 175,625 6,312
NEXTLINK Communications, Inc. *............... 94,310 7,014
---------
13,326
Transportation Services - 1.1%
Ryanair Holdings plc - ADR *.................. 36,171 1,917
---------
TOTAL COMMON STOCK- 96.2% 174,585
Par
Value
(000's)
COMMERCIAL PAPER
Brokerage and Investment Management - 2.9%
Prudential Funding Corp.......................
5.55% due 07/01/99........................... $ 5,300 5,300
Personal and Commercial Lending - 2.8%
Household Finance Corp........................
5.45% due 07/01/99........................... 5,000 5,000
---------
TOTAL COMMERCIAL PAPER- 5.7% 10,300
-------- ---------
TOTAL INVESTMENTS- 101.9% 184,885
Payables, less cash and receivables- (1.9)% (3,388)
-------- ---------
NET ASSETS- 100.0% $ 181,497
======== =========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
70
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.2%
Allied Signal, Inc. ..................... 21,600 $ 1,361
Boeing Co. .............................. 27,000 1,193
Lockheed Martin Corp. ................... 25,300 942
--------
3,496
Auto and Truck Parts - 1.6%
General Motors Corp. .................... 10,000 660
Genuine Parts Co. ....................... 30,600 1,071
TRW, Inc. ............................... 14,200 779
--------
2,510
Automobile - 0.0%
Delphi Automotive Systems Corp. *........ 4,389 82
Banks - 8.4%
Bank of Amreica Corp. ................... 15,000 1,100
Bank One Corp. ......................... 26,300 1,567
BankBoston Corp. ....................... 17,900 915
Chase Manhattan Corp. ................... 13,800 1,195
Fleet Financial Group, Inc. ............. 27,400 1,216
J.P. Morgan & Co., Inc. ................. 12,100 1,700
KeyCorp . ............................... 10,800 347
Mellon Bank Corp. ....................... 81,000 2,946
Mercantile Bankshares Corp. ............. 16,300 577
National City Corp. ..................... 12,000 786
Wells Fargo & Co. ....................... 25,200 1,077
--------
13,426
Business Services - 1.0%
Dun & Bradstreet Corp. .................. 19,400 688
H & R Block, Inc. ....................... 18,700 935
--------
1,623
Chemicals - 5.7%
Arch Chemicals, Inc. .................... 3,000 73
Dow Chemical Co. ....................... 17,700 2,246
E.I. du Pont de Nemours & Co. ........... 26,600 1,817
Great Lakes Chemical Corp. .............. 24,600 1,133
Hercules, Inc. .......................... 38,300 1,506
Imperial Chemical Industries plc - ADR . 16,600 660
Nalco Chemical Co. ...................... 22,700 1,177
Witco Corp. ............................. 24,100 482
--------
9,094
Commercial Services - 0.5%
R.R. Donnelley & Sons Co. ............... 19,700 730
Computer Equipment - 1.3%
Compaq Computer Corp. ................... 16,800 398
Hewlett-Packard Co. ..................... 16,800 1,688
--------
2,086
Construction - 0.7%
Armstrong World Industries, Inc. ........ 20,300 1,174
Consumer - Miscellaneous - 2.0%
Fortune Brands, Inc. .................... 19,500 807
Honeywell, Inc. ......................... 11,500 1,333
Stanley Works ........................... 16,600 534
Tupperware Corp. ........................ 13,700 349
Unilever NV - CVA ....................... 3,400 229
--------
3,252
Cosmetics and Personal Care Products - 1.0%
International Flavors & Fragrances, Inc.. 35,200 1,562
Diversified Operations - 3.8%
Cooper Industries, Inc. ................. 17,000 884
General Electric Co. .................... 11,600 1,311
Minnesota Mining & Manufacturing Co. .... 19,700 1,713
Olin Corp. .............................. 19,300 255
Pall Corp. .............................. 41,800 927
PPG Industries, Inc. .................... 15,500 915
--------
6,005
Electric Power - 4.2%
Constellation Energy Group............... 8,700 258
DQE, Inc. ............................... 16,900 678
Duke Energy Co. ......................... 20,200 1,098
Entergy Corp. ........................... 16,900 528
Firstenergy Corp. ....................... 39,000 1,209
Niagara Mohawk Holdings, Inc. ........... 16,600 267
PacifiCorp............................... 35,000 643
Reliant Energy, Inc. .................... 26,600 735
Southern Co. ............................ 39,000 1,034
Teco Energy, Inc. ....................... 13,900 316
--------
6,766
Electrical Equipment - 0.7%
Unicom Corp. ............................ 29,800 1,149
Electronic Products and Services - 0.4%
Hubbell, Inc. - Cl. B ................... 15,100 685
Financial Services - 1.3%
Citigroup, Inc. ......................... 45,375 2,155
Food, Beverage and Tobacco - 9.8%
Anheuser-Busch Cos., Inc. ............... 24,900 1,766
Brown-Forman Corp. ...................... 15,700 1,023
Campbell Soup Co. ....................... 19,100 886
General Mills, Inc. ..................... 28,000 2,251
H.J. Heinz Co. .......................... 22,400 1,123
Hershey Foods Corp. ..................... 15,600 926
Kellogg Co. ............................. 27,900 921
McCormick & Co., Inc. ................... 28,600 903
Nabisco Holdings Corp. .................. 38,800 759
PepsiCo, Inc. ........................... 10,900 422
Philip Morris Cos., Inc. ................ 42,600 1,712
Quaker Oats Co. ......................... 19,500 1,294
R.J. Reynolds Tobacco Holdings, Inc. *... 12,933 407
71
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Food, Beverage and Tobacco - Continued
UST, Inc. ............................... 44,700 $ 1,307
--------
15,700
Health Care Products - 4.3%
Abbott Laboratories ..................... 22,500 1,024
American Home Products Corp. *........... 42,200 2,427
Merck & Co., Inc. ....................... 9,000 666
Pharmacia & Upjohn, Inc. ................ 39,600 2,250
Smith & Nephew plc....................... 149,500 452
--------
6,819
Household Appliances / Furnishings - 0.8%
Whirlpool Corp. ......................... 16,800 1,243
Insurance - 5.1%
American General Corp. .................. 20,400 1,538
Chubb Corp. ............................. 13,300 924
Lincoln National Corp. .................. 19,000 994
Safeco Corp. ............................ 26,300 1,160
St. Paul Cos., Inc. ..................... 48,752 1,551
Transamerica Corp. ...................... 16,600 1,245
XL Capital, Ltd. - Cl. A ................ 12,000 678
--------
8,090
Leisure and Recreation - 2.1%
Eastman Kodak Co. ....................... 24,100 1,633
Hilton Hotels Corp. ..................... 23,100 328
Starwood Hotels & Resorts Worldwide, Inc. 47,400 1,448
--------
3,409
Media - Publishing - 1.9%
Dow Jones & Co., Inc. ................... 17,000 902
Knight-Rider, Inc. ...................... 22,300 1,225
Readers Digest Association, Inc. - Cl. A. 21,500 855
--------
2,982
Media - TV / Radio - 0.3%
The Walt Disney Co. ..................... 13,500 416
Metal Product and Fabrication - 0.7%
Reynolds Metals Co. ..................... 18,200 1,074
Metals and Mining - 0.8%
Inco, Ltd. .............................. 33,500 603
Phelps Dodge Corp. ...................... 10,300 638
--------
1,241
Oil - 2.5%
Atlantic Richfield Co. (ARCO) ........... 28,300 2,365
Royal Dutch Petroleum Co. - NY Shares ... 27,500 1,657
--------
4,022
Oil - Equipment and Services - 1.0%
Baker Hughes, Inc. ...................... 50,000 1,675
Oil and Natural Gas Exploration and Production - 9.5%
Amerada Hess Corp. ..................... 22,300 1,327
BP Amoco plc - ADR ..................... 24,376 2,645
Chevron Corp. ........................... 22,500 2,142
Exxon Corp. ............................. 31,700 2,445
Mobil Corp. ............................. 20,700 2,049
Phillips Petroleum Co. ................. 13,700 689
Texaco, Inc. ............................ 28,600 1,787
Unocal Corp. ............................ 32,600 1,292
USX-Marathon Group ...................... 24,100 785
--------
15,161
Paper and Forest Products - 3.8%
Consolidated Papers, Inc. ............... 24,500 656
Fort James Corp. ........................ 24,900 943
International Paper Co. ................. 47,470 2,397
Kimberly-Clark Corp. .................... 35,600 2,029
--------
6,025
Pollution Control - 1.2%
Browning-Ferris Industries, Inc. ........ 34,000 1,462
Waste Management, Inc. .................. 8,990 483
--------
1,945
Precious Metals/Gems/Stones - 0.3%
Newmont Mining Corp. .................... 27,400 545
Real Estate Investment Trust - 0.8%
Crescent Real Estate Equities, Inc. ..... 19,300 458
Simon Property Group, Inc. .............. 35,500 901
--------
1,359
Real Estate Operations - 0.3%
Rouse Co. ............................... 16,900 429
Retail - Department Stores - 1.5%
J.C. Penney Co., Inc. ................... 22,700 1,102
May Department Stores Co. ............... 16,050 656
Toys "R" Us, Inc. *...................... 33,500 693
--------
2,451
Telecommunication Services - 0.7%
BCE, Inc. ............................... 21,200 1,045
Telephone - 9.0%
Alltel Corp. ............................ 43,200 3,089
AT&T Corp. .............................. 14,100 787
Bell Atlantic Corp. ..................... 28,000 1,830
BellSouth Corp. ......................... 12,600 591
GTE Corp. ............................... 33,500 2,538
SBC Communications, Inc. ................ 62,655 3,634
Telecomunicacoes Brasileiras S.A. ....... 10,200 920
Telecomunicacoes Brasileiras S.A. - ADR.. 8,500
U.S. West, Inc. ......................... 15,800 928
--------
14,317
Transportation Services - 3.2%
Alexander & Baldwin, Inc. ............... 9,500 211
72
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - Continued
Burlington Northern Santa Fe ........... 24,800 $ 769
GATX Corp. .............................. 8,800 335
Norfolk Southern Corp. .................. 59,200 1,783
Union Pacific Corp. ..................... 35,600 2,076
--------
5,174
U.S. Government Agencies - 1.1%
Federal National Mortgage Assoc. ........ 24,700 1,689
--------
TOTAL COMMON STOCK- 95.5% 152,606
Par
Value
(000's)
PUBLICLY-TRADED BONDS
U.S. Governmental - 0.3%
U.S. Treasury - Notes
5.75% due 08/15/03 ..................... $ 150 150
6.5% due 05/31/01 ....................... 200 204
7.0% due 07/15/06 ....................... 150 159
--------
TOTAL PUBLICLY-TRADED BONDS- 0.3% 513
COMMERCIAL PAPER
Banks - 1.2%
Commonwealth Bank of Australia
4.8% due 08/10/99 ....................... 1,000 995
Nordbanken North America, Inc.
4.82% due 08/10/99 ..................... 1,000 994
--------
1,989
Diversified Operations - 1.2%
Ciesco L.P.
5.0% due 03/01/99 ....................... 2,000 1,993
Financial Services - 1.3%
Falcon Asset Securitization Corp.
5.1% due 06/01/99 ....................... 1,000 997
Golden Funding Corp.
5.05% due 07/13/99 ..................... 1,000 999
--------
1,996
Oil and Natural Gas Exploration and Production - 0.2%
Exxon Imperial U.S., Inc.
5.75% due 07/01/99 ..................... 307 307
--------
TOTAL COMMERCIAL PAPER- 3.9% 6,285
-------- --------
TOTAL INVESTMENTS- 99.7% 159,404
Cash and Receivables, less payables- 0.3% 447
-------- --------
NET ASSETS- 100.0% $159,851
========= ========
* Non-income producing security.
ADR - American Depository Receipt
See notes to financial statements.
73
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Banks- 24.9%
Bank of Nova Scotia
5.4% due 06/01/00......................... $ 6,030 $ 6,056
Chase Manhattan Bank USA
5.08% due 02/01/00........................ 5,000 5,041
Deutsche Bank AG
5.62% due 06/26/00........................ 5,000 5,004
Fleet National Bank
4.86% due 08/25/99........................ 10,000 10,212
4.91% due 08/11/99........................ 9,000 9,180
Key Bank NA
4.898% due 07/21/99....................... 10,000 10,013
National Bank of Canada
5.14% due 04/24/00........................ 20,000 20,190
PNC Bank NA
5.015% due 07/27/99....................... 10,000 10,004
PNC Bank NA - Notes
4.862% due 06/07/00....................... 5,000 5,014
Svenska Handelsbanken NY
5.23% due 03/01/00........................ 4,000 4,072
5.28% due 03/03/00........................ 4,000 4,069
--------
88,855
Brokerage and Investment Management- 2.3%
Goldman Sachs Group, Inc.
5.15% due 04/19/00........................ 8,000 8,083
Financial Services- 8.9%
Morgan Guaranty Trust Co.
4.86% due 07/20/99........................ 10,000 10,219
National Rural Utilities Cooperative
Finance Corp. - Notes
5.177% due 06/26/00....................... 10,000 10,008
Norwest Financial, Inc. - Sr. Notes
6.68% due 09/15/99........................ 3,000 3,060
Sheffield Receivables Corp.
5.87% due 06/03/99........................ 3,586 3,586
Sigma Finance, Inc.
5.14% due 02/10/00........................ 5,000 5,101
--------
31,974
Food, Beverage and Tobacco- 1.4%
PepsiCo, Inc. - Notes
4.837% due 08/19/99....................... 5,000 5,028
--------
TOTAL PUBLICLY-TRADED BONDS- 37.5% 133,940
COMMERCIAL PAPER
Auto and Truck Parts - 4.2%
BMW U.S. Capital Corp.
4.97% due 06/08/99........................ 15,000 14,983
Automobile - 2.7%
American Honda Finance Corp.
5.01% due 06/10/99........................ 9,807 9,792
Banks - 2.8%
Banco Nacional de Comercio Exterior
4.82% due 07/21/99........................ 8,000 7,979
Barclays, Ltd.
4.89% due 07/21/99........................ 2,000 1,995
--------
9,974
Brokerage and Investment Management - 4.1%
Lehman Brothers Holdings, Inc.
5.0% due 06/21/99......................... 7,000 6,958
5.12% due 06/03/99........................ 3,943 3,936
Merrill Lynch & Co., Inc.
5.12% due 02/26/99........................ 4,039 4,021
--------
14,915
Chemicals - 1.4%
E.I. du Pont de Nemours & Co.
4.8% due 07/20/99......................... 5,000 4,987
Diversified Operations - 4.2%
Ciesco L.P.
4.91% due 03/01/99........................ 15,000 14,949
Financial Services - 36.2%
Assets Securitization Corp.
4.84% due 04/07/99........................ 3,000 2,998
Associates First Capital Corp.
4.88% due 06/11/99........................ 5,850 5,830
Centric Capital Corp.
5.03% due 07/19/99........................ 9,088 9,065
Corporate Recievables Corp.
4.92% due 06/22/99........................ 5,629 5,598
5.08% due 04/28/99........................ 8,000 7,947
Enterprise Funding Corp.
4.94% due 06/03/99........................ 5,000 4,977
5.08% due 04/09/99........................ 4,942 4,915
Falcon Asset Securitization Corp.
4.85% due 06/01/99........................ 6,264 6,259
4.85% due 07/07/99........................ 3,000 2,997
4.86% due 07/07/99........................ 5,637 5,632
5.25% due 07/08/99........................ 2,900 2,891
General Electric Capital Corp.
4.89% due 01/28/00........................ 6,000 5,828
Greenwich Funding Corp.
4.87% due 06/07/99........................ 4,000 3,990
Monte Rosa Capital Corp.
4.87% due 10/23/98........................ 9,907 9,892
4.95% due 07/08/99........................ 8,000 7,992
Nestle Capital Corp.
4.84% due 07/07/99........................ 12,281 12,272
74
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - CONTINUED
Financial Services - Continued
Sears Roebuck Acceptance Corp.
4.89% due 04/14/99........................ $ 5,000 $ 4,901
5.18% due 11/24/99........................ 6,422 6,410
Sigma Finance, Inc.
4.85% due 10/19/99........................ 3,000 2,956
4.86% due 08/06/99........................ 5,000 4,976
Windmill Funding Corp.
5.02% due 07/06/99........................ 1,000 999
Xerox Capital Europe plc
5.0% due 06/17/99......................... 10,000 9,975
--------
129,300
Food, Beverage and Tobacco - 1.4%
Coca-Cola Enterprises, Inc.
4.89% due 06/16/99........................ 2,900 2,885
5.02% due 08/09/99........................ 2,060 2,058
--------
4,943
Leisure and Recreation - 1.6%
K2 USA Llc
4.96% due 09/02/99........................ 5,798 5,748
Personal and Commercial Lending - 2.8%
Ford Credit Europe plc
4.84% due 07/08/99........................ 10,000 9,991
Telecommunication Services - 1.1%
American Telephone & Telegraph Co.
4.81% due 07/27/99........................ 4,000 3,986
--------
TOTAL COMMERCIAL PAPER- 62.5% 223,568
------- --------
TOTAL INVESTMENTS- 100.0% 357,508
Payables, less cash and receivables- (0.0)% (100)
-------- --------
NET ASSETS- 100.0% $357,408
======== ========
See notes to financial statements.
75
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.7%
Gulfstream Aerospace Corp. * ............. 39,700 $ 2,682
Auto and Truck Parts - 3.9%
AutoZone, Inc. * ......................... 56,000 1,687
Lear Corp. * ............................. 44,000 2,189
--------
3,876
Automobile - 0.6%
Navistar International Corp., Inc. ....... 12,500 625
Banks - 4.3%
Bank One Corp. ........................... 12,000 715
BankBoston Corp. ......................... 40,500 2,070
Valley National Bancorp .................. 53,000 1,524
--------
4,309
Brokerage and Investment Management - 2.3%
Bear Stearns Cos., Inc. .................. 46,700 2,183
Goldman Sachs Group, Inc. * .............. 2,200 159
--------
2,342
Business Services - 2.3%
Dun & Bradstreet Corp. ................... 64,000 2,268
Chemicals - 6.7%
Engelhard Corp. .......................... 64,000 1,448
Hercules, Inc. ........................... 25,000 983
Lyondell Chemical Co. .................... 76,500 1,578
Praxair, Inc. ............................ 25,900 1,267
W.R. Grace & Co. ......................... 77,400 1,422
--------
6,698
Computer Equipment - 2.1%
Quantum Corp. ............................ 59,000 1,423
Xerox Corp. .............................. 12,000 709
--------
2,132
Computer Software and Services - 4.3%
Cadence Design Systems, Inc. * ........... 89,000 1,135
Computer Associates International, Inc. .. 37,000 2,035
Parametric Technology Co. * .............. 84,500 1,172
--------
4,342
Containers - 1.0%
Owens-Illinois, Inc. * ................... 32,100 1,049
Electric Power - 1.4%
Niagara Mohawk Holdings, Inc. ............ 85,600 1,375
Electrical Equipment - 3.1%
UCAR International, Inc. * ............... 84,000 2,121
Unicom Corp. ............................. 24,500 945
--------
3,066
Electronic Products and Services - 2.3%
Storage Technology Corp. ................. 49,000 1,115
Teradyne, Inc. * ......................... 17,100 1,227
--------
2,342
Financial Services - 2.1%
Finova Group, Inc. ....................... 40,900 2,152
Health Care Products - 4.6%
ALZA Corp. * ............................. 32,000 1,628
Becton, Dickinson & Co. .................. 47,300 1,419
Centocor, Inc. * ......................... 33,700 1,571
--------
4,618
Health Care Services - 3.4%
PacifiCare Health Systems, Inc. * ........ 24,900 1,791
Tenet Healthcare Corp. * ................. 57,000 1,058
Wellpoint Health Networks, Inc. * ........ 6,300 535
--------
3,384
Insurance - 5.0%
Ace, Ltd. * .............................. 81,000 2,288
Ambac Financial Group, Inc. .............. 16,500 942
Cigna Corp. .............................. 10,300 917
Cincinnati Financial Corp. ............... 23,500 883
--------
5,030
Leisure and Recreation - 0.9%
Mirage Resorts, Inc. * ................... 53,000 888
Machinery - 5.3%
McDermott International, Inc. ............ 58,800 1,661
SPX Corp. ................................ 32,300 2,697
W.W. Grainger, Inc. ...................... 17,200 926
--------
5,284
Media - Publishing - 1.4%
AT&T Corp. - Liberty Media Group - Cl. A * 37,600 1,382
Media - TV / Radio - 3.0%
A.H. Belo Corp. - Common Ser. A .......... 58,300 1,148
E.W. Scripps Co. - Cl. A ................. 25,600 1,217
Shaw Communications, Inc. ................ 15,800 628
--------
2,993
Natural Gas Distribution - 2.5%
UGI Corp. ................................ 38,000 767
Williams Cos., Inc. ...................... 40,800 1,704
--------
2,471
Oil - 2.2%
Tosco Corp. .............................. 84,000 2,179
Oil and Natural Gas Exploration and Production - 3.9%
Apache Corp. ............................. 34,000 1,326
Coastal Corp. ............................ 34,300 1,372
USX-Marathon Group ....................... 38,000 1,237
--------
3,935
76
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Paper and Forest Products - 1.9%
Fort James Corp. ......................... 50,000 $ 1,894
Personal and Commercial Lending - 4.8%
Countrywide Credit Industries, Inc. ...... 50,500 2,159
SLM Holding Corp. ........................ 58,200 2,666
--------
4,825
Pollution Control - 3.1%
Allied Waste Industries, Inc. * .......... 158,000 3,121
Real Estate Operations - 1.8%
IndyMac Mortgage Holdings, Inc. .......... 114,000 1,824
Retail - Department Stores - 2.1%
Harcourt General, Inc. ................... 40,000 2,063
Retail - Drug Stores - 2.4%
Rite Aid Corp. ........................... 95,800 2,359
Retail - Food - 1.3%
Food Lion, Inc. - Cl. A .................. 65,300 775
Food Lion, Inc. - Cl. B * ................ 47,900 554
--------
1,329
Steel - 0.8%
AK Steel Holding Corp. ................... 35,100 790
Telecommunication Equipment - 4.5%
American Tower Corp. - Cl. A ............. 62,000 1,488
General Motors Corp. - Cl. H ............. 30,600 1,721
Nortel Networks Corp. .................... 15,000 1,302
--------
4,511
Telecommunication Services - 1.1%
Loral Space & Communications, Ltd. * ..... 63,000 1,134
Transportation Services - 3.0%
Burlington Northern Santa Fe ............. 46,500 1,442
Canadian National Railway Co. ............ 5,800 389
Continental Airlines, Inc. - Cl. B * ..... 31,800 1,196
--------
3,027
--------
TOTAL COMMON STOCK- 98.1% 98,299
PREFERRED STOCK - 1.5%
Media - TV / Radio - 1.5%
The News Corp., Ltd. - ADR ............... 46,100 1,455
SHORT-TERM INVESTMENTS - 0.5%
Investment in joint trading account (Note B)
5.291% due 07/01/99 ..................... $ 552 $ 552
-------- --------
TOTAL INVESTMENTS- 100.1% 100,306
Payables, less cash and receivables- (0.1)% (107)
-------- --------
NET ASSETS- 100.0% $100,199
-------- --------
*Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
77
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
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 $ 198
United Technologies Corp. - Debs.
8.875% due 11/15/19 ......................... 50 59
------
257
Automobile - 0.1%
Delphi Automotive Systems Corp.
7.125% due 05/01/29 ......................... 50 46
Banks - 4.2%
Bank One Corp. - Sr. Notes
5.625% due 02/17/04 ......................... 150 144
BankAmerica Corp. - Sub. Notes
6.5% due 03/15/06 ........................... 150 146
First Union Corp. - Sub. Notes
8.125% due 06/24/02 ......................... 230 240
Golden West Financial Corp. - Sub. Notes
6.7% due 07/01/02 ........................... 150 150
InterAmerican Development Bank - Debs.
8.5% due 03/15/11 ........................... 200 232
Korea Development Bank
7.375% due 09/17/04 ......................... 120 118
National City Bank of Pennsylvania - Sub.
Notes
7.25% due 10/21/11 .......................... 50 50
Royal Bank of Scotland plc
6.4% due 04/01/09 ........................... 40 38
Wachovia Corp. - Sub. Notes
5.625% due 12/15/08 ......................... 75 68
Wells Fargo & Co. - Sub. Notes
6.875% due 04/01/06 ......................... 150 150
------
1,336
Brokerage and Investment Management - 1.3%
Lehman Brothers Holdings, Inc. - Notes
8.5% due 05/01/07 ........................... 100 105
Merrill Lynch & Co., Inc. - Notes
8.0% due 06/01/07 ........................... 200 210
Morgan Stanley, Dean Witter, Discover & Co.
6.875% due 03/01/07 ......................... 100 99
------
414
Business Services - 0.5%
Comdisco, Inc. - Notes
6.125% due 01/15/03 ......................... 150 147
Chemicals - 1.1%
ICI Wilmington - Debs.
8.75% due 05/01/01 .......................... 300 311
Morton International, Inc. - Debs.
9.25% due 06/01/20 .......................... 40 46
------
357
Computer Equipment - 0.3%
International Business Machines Corp. - Debs.
7.0% due 10/30/25 ........................... 100 99
Consumer - Miscellaneous - 0.3%
Fortune Brands, Inc. - Debs.
7.875% due 01/15/23 ......................... 100 106
Diversified Operations - 1.6%
Diageo Capital plc
6.125% due 08/15/05 ......................... 200 193
John Deere Capital Corp.
6.0% due 02/15/09 ........................... 60 56
Tenneco, Inc. - Debs.
10.2% due 03/15/08 .......................... 150 175
Tyco International Group SA
6.375% due 06/15/05 ......................... 80 78
------
502
Electric Power - 1.9%
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 .......................... 60 64
Duke Energy Co.
6.75% due 08/01/25 .......................... 100 90
Enersis SA - Notes
6.9% due 12/01/06 ........................... 30 27
Florida Power & Light Co.
7.75% due 02/01/23 .......................... 50 50
Philadelphia Electric Co.
7.125% due 09/01/02 ......................... 100 102
Tennessee Valley Authority
6.75% due 11/01/25 .......................... 100 100
Virginia Electric Power Co. - 1st Mtge.
7.625% due 07/01/07 ......................... 150 158
------
591
Financial Services - 4.0%
Citicorp Capital II - Bonds
8.015% due 02/15/27 ......................... 100 100
Commercial Credit Co.
5.9% due 09/01/03 ........................... 150 146
Ford Capital B.V. - Debs.
9.5% due 06/01/10 ........................... 150 174
General Electric Capital Corp. - Debs.
8.75% due 05/21/07 .......................... 150 168
KFW International Finance - Debs.
9.125% due 05/15/01 ......................... 300 315
Morgan Stanley, Dean Witter, Discover & Co. -
Notes
6.875% due 03/01/03 ......................... 200 202
Sumitomo Bank International Finance NV -
Notes
8.5% due 06/15/09 ........................... 100 101
78
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Financial Services - Continued
Washington Mutual Capital I
8.375% due 06/01/27 ......................... $ 60 $ 61
-------
1,267
Food, Beverage and Tobacco - 0.8%
Coca-Cola Enterprises, Inc. - Debs.
8.5% due 02/01/22 ........................... 100 112
Food Lion, Inc. - Notes
8.05% due 04/15/27 ......................... 50 53
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 ......................... 100 105
-------
270
Foreign Governmental - 2.6%
Government of Newfoundland
9.0% due 10/15/21 ........................... 60 70
Hydro-Quebec
8.4% due 01/15/22 ........................... 100 110
Kingdom of Sweden - Debs.
12.0% due 02/01/10 ......................... 75 106
Malaysia - Bonds
8.75% due 06/01/09 ......................... 50 50
Province of Manitoba - Debs.
6.875% due 09/15/02 ......................... 200 203
Province of Ontario
8.0% due 10/17/01 ........................... 200 207
Republic of Korea - Unsub.
8.75% due 04/15/03 ......................... 85 89
-------
835
Insurance - 0.8%
Aetna Services, Inc.
7.625% due 08/15/26 ......................... 100 98
Torchmark, Inc. - Debs
8.25% due 08/15/09 ......................... 100 104
Travelers Property Casualty Corp. - Sr. Notes
7.75% due 04/15/26 ......................... 50 52
-------
254
Machinery - 0.6%
Reliance Electric Co. - Notes
6.8% due 04/15/03 ........................... 200 202
Media - TV / Radio - 1.2%
News America Holdings, Inc. - Debs.
7.7% due 10/30/25 ........................... 100 97
TCI Communciations, Inc. - Sr. Notes
7.125% due 02/15/28 ......................... 70 67
The Walt Disney Co. - Sr. Notes
6.75% due 03/30/06 ......................... 200 202
-------
366
Metals and Mining - 0.6%
Noranda, Inc. - Debs.
7.0% due 07/15/05 ........................... 200 192
Natural Gas Distribution - 0.6%
Enron Corp. - Notes
6.75% due 09/15/04 ......................... 100 100
Tennessee Gas Pipeline - Bonds
7.5% due 04/01/17 ........................... 100 99
-------
199
Oil - 0.6%
Atlantic Richfield Co. (ARCO)
5.55% due 04/15/03 ......................... 75 73
Tosco Corp. - Notes
7.625% due 05/15/06 ......................... 115 116
-------
189
Oil and Natural Gas Exploration and Production - 1.1%
Occidental Petroleum Corp. - Sr. Notes
10.125% due 11/15/01 ....................... 155 166
Phillips Petroleum Co.
6.65% due 07/15/18 ......................... 50 46
Saga Petroloeum ASA - Debs.
7.25% due 09/23/27 ......................... 75 70
Union Oil Co. of California
7.5% due 02/15/29 ........................... 60 58
-------
340
Paper and Forest Products - 0.5%
Bowater, Inc. - Debs.
9.0% due 08/01/09 ........................... 100 113
Champion International Corp. - Debs.
7.35% due 11/01/25 ......................... 50 47
-------
160
Personal and Commercial Lending - 1.5%
General Motors Acceptance Corp. - Notes
9.625% due 12/15/01 ......................... 350 375
Household Finance Corp. - Notes
6.5% due 11/15/08 ........................... 100 95
-------
470
Pollution Control - 0.5%
Waste Management, Inc. - Sr. Notes
7.0% due 10/01/04 ........................... 150 151
Real Estate Investment Trust - 0.1%
Spieker Properties, Inc. - Debs.
7.5% due 10/01/27 ........................... 40 36
Retail - Department Stores - 0.7%
Dayton Hudson Corp. - Debs.
6.75% due 01/01/28 ......................... 25 23
Gap, Inc. - Notes
6.9% due 09/15/07 ........................... 100 101
79
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Retail - Department Stores - Continued
Wal-Mart Stores, Inc. - Debs.
6.75% due 10/15/23........................... $ 100 $ 95
-------
219
Retail - Drug Stores - 0.9%
Rite Aid Corp. - Notes
6.7% due 12/15/01............................ 300 299
Retail - Food - 0.3%
Albertson's, Inc. - Notes
6.625% due 06/01/28.......................... 50 46
McDonald's Corp. - Sub. Debs.
7.31% due 09/15/27........................... 60 59
-------
105
Telecommunication Equipment - 0.1%
Lucent Technologies, Inc. - Debs.
6.5% due 01/15/28............................ 50 46
Telecommunication Services - 0.7%
Bell Canada
7.75% due 04/01/06........................... 125 131
Bellsouth Telecommunications - Debs.
7.0% due 10/01/25............................ 100 97
-------
228
Telephone - 2.0%
ALLTEL Corp. - Sr. Notes
7.6% due 04/01/09............................ 100 104
AT&T Corp. - Notes
6.5% due 03/15/29............................ 60 54
MCI Worldcom, Inc. - Sr. Notes
6.4% due 08/15/05............................ 200 196
New York Telephone Co. - Debs.
7.25% due 02/15/24........................... 100 97
South Carolina Electric & Gas - 1st. Mtge.
7.5% due 06/15/23............................ 100 95
Southwestern Bell Telephone - Debs.
5.875% due 06/01/03.......................... 100 97
-------
643
Transportation Services - 0.7%
Delta Air Lines - Debs.
10.375% due 12/15/22......................... 100 125
Laidlaw, Inc. - Debs.
8.75% due 04/15/25........................... 100 101
-------
226
U.S. Government Agencies - 13.6%
Federal Home Loan Bank
5.58% due 08/17/01........................... 300 299
Federal Home Loan Mortgage Corp.
5.75% due 07/15/03........................... 200 197
5.75% due 04/15/08........................... 100 95
6.3% due 06/01/04............................ 300 297
7.1% due 04/10/07............................ 1,500 1,560
Federal National Mortgage Assoc.
5.125% due 02/13/04.......................... 230 220
5.875% due 04/23/04.......................... 300 294
6.0% due 05/15/08............................ 40 39
6.16% due 08/07/28........................... 50 47
6.19% due 02/19/09........................... 120 114
8.35% due 11/10/99........................... 1,000 1,010
Financing Corp. - Bonds
8.6% due 09/26/19............................ 150 183
-------
4,355
U.S. Governmental - 51.6%
U.S. Treasury - Bonds
6.75% due 08/15/26........................... 275 294
7.625% due 11/15/22.......................... 1,340 1,562
8.75% due 05/15/17........................... 1,100 1,389
8.75% due 08/15/20........................... 1,100 1,415
9.25% due 02/15/16........................... 200 261
11.125% due 08/15/03......................... 2,000 2,385
U.S. Treasury - Notes
4.75% due 02/15/04........................... 500 481
4.75% due 11/15/08........................... 410 376
5.625% due 05/15/08.......................... 350 343
6.125% due 07/31/00.......................... 3,050 3,073
6.125% due 08/15/07.......................... 100 101
6.375% due 08/15/02.......................... 260 265
6.5% due 05/31/02............................ 2,000 2,045
6.875% due 05/15/06.......................... 1,775 1,869
8.0% due 05/15/01............................ 600 626
-------
16,485
-------
TOTAL PUBLICLY-TRADED BONDS- 98.2% 31,392
-------
SHORT-TERM INVESTMENTS - 0.1%
Investment in joint trading account (Note B)
5.291% due 07/01/99......................... 41 41
------- -------
TOTAL INVESTMENTS- 98.3% 31,433
Cash and Receivables, less payables- 1.7% 526
------- -------
NET ASSETS- 100.0% $31,959
======= =======
See notes to finacial statements.
80
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Automobile - 3.2%
United Rentals, Inc. * .................. 208,300 $ 6,145
Banks - 6.0%
FirstMerit Corp. ........................ 55,300 1,552
Mercantile Bankshares Corp. ............. 90,000 3,184
National Commerce Bancorporation ........ 55,000 1,203
Westamerica Bancorporation .............. 55,000 2,007
Wilmington Trust Trust Corp. ............ 66,000 3,787
--------
11,733
Business Services - 3.0%
American Management Systems, Inc. * ..... 145,400 4,662
Robert Half International, Inc. ......... 49,000 1,274
--------
5,936
Chemicals - 3.5%
MacDermid, Inc. ......................... 50,500 2,348
Minerals Technologies, Inc. ............. 82,000 4,577
--------
6,925
Commercial Services - 6.5%
ACNielson Corp. * ....................... 38,100 1,152
Concord EFS, Inc. * ..................... 20,000 846
DeVry, Inc. * ........................... 34,000 761
G & K Services, Inc. .................... 127,000 6,652
Lason, Inc. * ........................... 65,000 3,226
--------
12,637
Computer Equipment - 0.9%
The BISYS Group, Inc. * ................. 28,900 1,691
Computer Software and Services - 19.7%
Acxiom Corp. * .......................... 141,000 3,516
DST Systems, Inc. * ..................... 123,000 7,734
Fiserv, Inc. ............................ 74,400 2,330
Policy Management Systems Corp. * ....... 128,000 3,840
Shared Medical Systems Corp. ............ 81,000 5,285
Sterling Software, Inc. * ............... 225,000 6,005
SunGard Data Systems, Inc. .............. 63,600 2,194
Synopsys, Inc. * ........................ 93,400 5,154
Systems & Computer Technology Corp. * ... 165,000 2,403
--------
38,461
Consumer - Miscellaneous - 3.1%
Catalina Marketing Corp. * .............. 65,000 5,980
Containers - 1.3%
Bemis Company, Inc. ..................... 66,000 2,624
Cosmetics and Personal Care Products - 0.5%
AptarGroup, Inc. ........................ 30,000 900
Electric Power - 1.2%
Montana Power Co. ....................... 32,200 2,270
Electrical Equipment - 1.1%
Littelfuse, Inc. * ...................... 115,000 2,214
Electronic Products and Services - 10.7%
Dallas Semiconductor Corp. .............. 133,000 6,716
KLA-Tencor Corp. * ...................... 16,800 1,090
Sterling Commerce, Inc. * ............... 98,800 3,606
Waters Corp. * .......................... 80,900 4,298
Xilinx, Inc. * .......................... 90,000 5,153
--------
20,863
Financial Services - 2.3%
Finova Group, Inc. ...................... 87,000 4,578
Food, Beverage and Tobacco - 2.6%
Beringer Wine Estates Holdings * ........ 120,300 5,026
Health Care Products - 5.1%
Genzyme Corp. (General Division) * ...... 101,400 4,918
Genzyme Surgical Products * ............. 18,152 80
Henry Schein, Inc. * .................... 159,000 5,038
--------
10,036
Health Care Services - 3.0%
AmeriSource Health Corp. - Cl.A * ....... 40,400 1,030
Covance, Inc. * ......................... 200,000 4,788
--------
5,818
Household Appliances / Furnishings - 4.9%
Ethan Allen Interiors, Inc. ............. 133,000 5,020
Herman Miller, Inc. ..................... 140,000 2,940
Leggett & Platt, Inc. ................... 60,000 1,669
--------
9,629
Insurance - 4.4%
Ace, Ltd. * ............................. 41,300 1,167
Frontier Insurance Group, Inc. .......... 110,000 1,691
Mutual Risk Management, Ltd. ............ 23,100 771
Reinsurance Group of America, Inc. - Non
Voting ................................. 150,100 5,028
--------
8,657
Leisure and Recreation - 2.3%
Speedway Motorsports, Inc. * ............ 112,300 4,415
Media - TV / Radio - 1.2%
Univision Communications, Inc. - Cl. A * 35,800 2,363
Oil - Equipment and Services - 0.8%
Hanover Compressor Co. * ................ 50,000 1,606
Pollution Control - 1.3%
Donaldson Co., Inc. ..................... 45,000 1,102
Ionics, Inc. * .......................... 38,100 1,391
--------
2,493
Retail - Department Stores - 1.3%
MSC Industrial Direct Co., Inc. - Cl. A . 144,100 1,477
Staples, Inc. * ......................... 34,450 1,066
--------
2,543
81
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - continued
Retail - Food - 2.5%
Whole Foods Market, Inc. * ............. 100,000 $ 4,806
Telecommunication Equipment - 2.7%
American Tower Corp. - Cl. A ........... 20,000 480
Symbol Technologies, Inc. ............... 131,350 4,844
--------
5,324
Transportation Services - 1.4%
C.H. Robinson Worldwide, Inc. ........... 76,800 2,822
--------
TOTAL COMMON STOCK- 96.5% 188,495
RIGHTS - 0.0%
Telecommunication Services - 0.0%
TALK.com, Inc.
expires (Cost $0) ..................... 3,690
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.2%
Investment in joint trading account
(Note B) 5.291% due 07/01/99 .......... $ 8,277 8,278
-------- --------
TOTAL INVESTMENTS- 100.7% 196,773
Payables, less cash and receivables- (0.7)% (1,357)
-------- --------
NET ASSETS- 100.0% $195,416
======== ========
* Non-income producing security.
See notes to financial statements.
82
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.1%
Esterline Technologies Corp. * ................ 200 $ 3
The Fairchild Corp. - Cl. A ................... 300 4
------
7
Agricultural Operations - 0.3%
Agribrands International, Inc. * .............. 400 16
Auto and Truck Parts - 1.8%
Arvin Industries, Inc. ........................ 300 11
Avis Rent A Car, Inc. * ....................... 700 20
Bandag, Inc. .................................. 400 14
Cooper Tire & Rubber Co. ...................... 400 10
Cummins Engine Company, Inc. .................. 200 11
Lear Corp. * .................................. 300 15
Meritor Automotive, Inc. ...................... 400 10
Standard Products Co. ......................... 500 13
Tower Automotive, Inc. * ...................... 300 8
------
112
Automobile - 0.9%
Copart, Inc. .................................. 1,000 21
Group 1 Automotive, Inc. * .................... 300 7
Navistar International Corp., Inc. ............ 600 30
------
58
Banks - 5.6%
Associated Banc-Corp. ......................... 500 21
Centura Banks, Inc. ........................... 200 11
Chittenden Corp. ............................. 214 7
City National Corp. ........................... 600 23
Commerce Bancorp, Inc. ........................ 315 13
CORUS Bankshares, Inc. ........................ 300 10
Cullen/Frost Bankers, Inc. .................... 600 17
Dime Bancorp, Inc. ............................ 1,300 26
First Charter Corp. ........................... 500 12
First Sentinel Bancorp, Inc. .................. 1,500 13
First Virginia Banks, Inc. .................... 200 10
Golden State Bancorp, Inc. * .................. 200 4
Harbor Florida Bancshares, Inc. ............... 500 6
Hibernia Corp. - Cl. A ........................ 300 5
Imperial Bancorp * ............................ 324 6
Independence Community Bank Corp. ............. 400 5
Mercantile Bankshares Corp. ................... 100 4
North Fork Bancorporation, Inc. ............... 600 13
Ocean Financial Corp. ......................... 1,200 22
Old Kent Financial Corp. ..................... 630 26
Omega Financial Corp. ......................... 500 17
One Valley Bancorp, Inc. ...................... 200 8
Roslyn Bancorp, Inc. .......................... 200 3
Staten Island Bancorp, Inc. ................... 200 4
TCF Financial Corp. ........................... 200 6
United Bankshares, Inc. ....................... 200 5
Valley National Bancorp ....................... 656 19
Western Bancorp ............................... 100 4
Zions Bancorp ................................. 500 32
------
352
Brokerage and Investment Management - 1.5%
Affiliated Managers Group, Inc. * ............. 200 6
E*TRADE Group, Inc. * ......................... 700 28
John Nuveen Co. - Cl. A ....................... 300 13
Morgan Keegan, Inc. ........................... 600 11
Southwest Securities Group, Inc. .............. 400 29
Waddell & Reed Financial, Inc. - Cl. A ........ 200 5
------
92
Business Services - 1.2%
Express Scripts, Inc. - Cl. A * ............... 300 18
IKON Office Solutions, Inc. ................... 400 6
Interim Services, Inc. ........................ 600 12
Metzler Group, Inc. * ......................... 200 6
Modis Professional Services, Inc. * ........... 700 10
Resource Bancshares Mortgage Group ............ 2,000 21
USWeb Corp. * ................................. 200 4
------
77
Chemicals - 1.0%
Crompton & Knowles Corp. ...................... 600 12
International Specialty Products, Inc. ........ 600 6
Millenium Chemicals, Inc. ..................... 700 16
Octel Corp. * ................................. 400 5
Sigma-Aldrich Corp. ........................... 300 10
Solutia, Inc. ................................. 600 13
------
62
Coal - 0.1%
Arch Coal, Inc. ............................... 400 6
Commercial Services - 4.4%
ACNielson Corp. * ............................. 500 15
ADVO, Inc. .................................... 300 6
Concord EFS, Inc. * ........................... 600 25
CPI Corp. ..................................... 200 7
Deluxe Corp. .................................. 600 23
E'Town Corp. .................................. 400 18
F.Y.I., Inc. * ................................ 200 6
General Binding Corp. ......................... 900 21
HON INDUSTRIES, Inc. .......................... 200 6
Lason, Inc. * ................................. 200 10
NOVA Corp. - Georgia * ........................ 100 3
Outdoor Systems, Inc. * ....................... 400 15
Primark Corp. ................................. 200 6
Quintiles Transnational Corp. * ............... 100 4
Snyder Communications, Inc. * ................. 600 20
StaffMark, Inc. ............................... 300 3
Standard Register Co. ......................... 300 9
TMP Worldwide, Inc. * ......................... 100 6
True North Communications ..................... 200 6
Unisource Worldwide, Inc. ..................... 900 11
83
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Commercial Services - Continued
Valassis Communications , Inc. * ............. 450 $ 16
Wackenhut Corp. - Cl. A ....................... 1,100 33
World Color Press, Inc. * ..................... 400 11
------
280
Computer Equipment - 2.4%
Apple Computer, Inc. * ....................... 600 28
Comverse Technology, Inc. * ................... 150 11
Diebold, Inc. ................................. 400 12
Hutchison Technology, Inc. * ................. 200 6
Mentor Graphics Corp. * ....................... 700 9
National Computer Systems, Inc. * ............. 400 13
Network Appliance, Inc. * ..................... 200 11
Quantum Corp. ................................. 400 10
SanDisk Corp. * ............................... 400 18
SMART Modular Technologies, Inc. * ........... 200 3
VERITAS Software Corp. * ..................... 200 19
Xircom, Inc. * ............................... 300 9
------
149
Computer Software and Services - 7.9%
Acclaim Entertainment, Inc. * ................. 1,500 10
Adobe Systems, Inc. ........................... 300 25
Advent Software, Inc. * ....................... 300 20
Affiliated Computer Services, Inc. -
Cl. A * ..................................... 200 10
Autodesk, Inc. ............................... 200 6
AVT Corp. * ................................... 200 8
BEA Systems, Inc. ............................. 300 9
Bell & Howell Co. * ........................... 300 11
Citrix Systems, Inc. * ....................... 200 11
CMGI, Inc. * ................................. 200 23
Concord Communications, Inc. * ............... 100 4
DoubleClick, Inc. * ........................... 200 18
DST Systems, Inc. * ........................... 100 6
Factset Research Systems, Inc. ............... 300 17
Fiserv, Inc. ................................. 150 5
Genesys Telecommunications Laboratories,
Inc. * ..................................... 200 5
i2 Technologies, Inc. * ....................... 200 9
Infoseek Corp. * ............................. 200 10
Intuit, Inc. * ............................... 400 36
Legato Systems, Inc. * ....................... 100 6
Lycos, Inc. * ................................. 100 9
Macromedia, Inc. * ........................... 200 7
Mercury Interactive Corp. * ................... 100 4
National Data Corp. ........................... 100 4
NCR Corp. * ................................... 500 24
New Era of Networks, Inc. * ................... 300 13
Peregrine Systems, Inc. * ..................... 300 8
Policy Management Systems Corp. * ............. 200 6
Progress Software Corp. * ..................... 400 11
PSINet, Inc. * ............................... 300 13
Rational Software Corp. * ..................... 500 16
RealNetworks, Inc. * ......................... 200 14
Remedy Corp. * ............................... 300 8
Sapient Corp. ................................. 200 11
Siebel Systems, Inc. * ....................... 800 53
Sterling Software, Inc. * ..................... 300 8
SunGard Data Systems, Inc. ................... 100 3
Symantec Corp. * ............................. 300 8
Synopsys, Inc. ............................... 500 28
Whittman-Hart, Inc. * ......................... 200 6
------
503
Construction - 1.4%
Dycom Industries, Inc. ....................... 150 8
Florida Rock Industries, Inc. ................. 100 5
Foster Wheeler Corp. ......................... 600 9
Granite Construction, Inc. ................... 200 6
Lafarge Corp. ................................. 500 18
NVR, Inc. * ................................... 200 10
Southdown, Inc. ............................... 100 6
U.S. Home Corp. * ............................. 100 4
USG Corp. * ................................... 400 22
------
88
Consumer - Miscellaneous - 1.3%
American Greetings Corp. - Cl. A ............. 500 15
Briggs & Stratton Corp. ....................... 200 12
Clorox Co. ................................... 34 4
Herbalife International, Inc. - Cl. A ......... 1,900 21
Metamor Worldwide, Inc. * ..................... 300 7
Sotheby's Holdings, Inc. - Cl. A ............. 500 19
Stewart Enterprises, Inc. - Cl. A ............. 300 4
------
82
Containers - 0.1%
Sonoco Products Co. ........................... 200 6
Cosmetics and Personal Care Products - 0.6%
AptarGroup, Inc. ............................. 400 12
Church & Dwight Co., Inc. ..................... 100 4
Dial Corp. ................................... 200 7
Playtex Products, Inc. * ..................... 800 13
------
36
Diversified Operations - 2.2%
Chemed Corp. ................................. 100 3
Crane Co. ..................................... 200 6
Dexter Corp. ................................. 200 8
Eastern Enterprises ........................... 100 4
Gerber Scientific, Inc. ....................... 200 4
Harsco Corp. ................................. 300 10
Hawaiian Electric Industries ................. 300 11
National Service Industries, Inc. ............. 100 4
Ogden Corp. ................................... 800 22
Pall Corp. ................................... 300 7
Sodexho Marriott Services, Inc. ............... 200 4
SPS Technologies, Inc. ....................... 100 4
84
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Diversified Operations - Continued
Teleflex, Inc. ................................ 300 $ 13
Tredegar Industries, Inc. ..................... 200 4
Trinity Industries, Inc. ...................... 300 10
Viad Corp. .................................... 500 15
Westinghouse Air Brake Co. .................... 300 8
------
137
Electric Power - 4.4%
Allegheny Energy, Inc. ........................ 500 16
Avista Corp. .................................. 400 6
BEC Energy .................................... 500 21
Calpine Corp. * ............................... 300 16
Central Hudson Gas & Electric Corp. ........... 100 4
Citizens Utilities Co. - Cl. B ................ 800 9
CMP Group, Inc. ............................... 1,100 29
DPL, Inc. ..................................... 200 4
DQE, Inc. ..................................... 100 4
Eastern Utilities Associates .................. 300 9
Energy East Corp. ............................. 600 16
Idacorp, Inc. ................................. 100 3
Kansas City Power & Light Co. ................. 100 2
LG&E Energy Corp. ............................. 200 4
Montana Power Co. ............................. 100 7
Nevada Power Co. .............................. 100 2
New England Electric System ................... 200 10
Ni Source, Inc. ............................... 500 13
Niagara Mohawk Holdings, Inc. ................. 500 8
NorthWestern Corp. ............................ 400 10
Potomac Electric Power Co. .................... 300 9
Public Service Co. of New Mexico .............. 1,000 20
Puget Sound Energy, Inc. ...................... 600 14
Rochester Gas and Electric Corp. .............. 200 5
SCANA Corp. ................................... 100 2
Teco Energy, Inc. ............................. 300 7
United Illuminating Co. ....................... 100 4
UtiliCorp United, Inc. ........................ 600 15
Western Resources, Inc. ....................... 100 3
Wisconsin Energy Corp. ........................ 200 5
------
277
Electrical Equipment - 1.4%
American Power Conversion ..................... 600 12
Best Buy Co., Inc. ............................ 700 47
EG & G, Inc. .................................. 300 11
Pentair, Inc. ................................. 300 14
UCAR International, Inc. * .................... 300 7
------
91
Electronic Products and Services - 8.0%
Aavid Thermal Technologies, Inc. * ............ 500 11
Adaptec, Inc. * ............................... 400 14
Alliant Energy Corp. .......................... 200 6
Altera Corp. * ................................ 600 22
Atmel Corp. * ................................. 300 8
Avnet, Inc. ................................... 200 9
Checkpoint Systems, Inc. ...................... 900 8
Cisco Systems, Inc. * ......................... 206 13
CTS Corp. ..................................... 400 28
Dionex Corp. * ................................ 200 8
DuPont Photomasks, Inc. * ..................... 100 5
Electro Scientific Industries, Inc. * ......... 200 8
Electronics for Imaging, Inc. * ............... 100 5
GenRad, Inc. .................................. 300 6
Hubbell, Inc. - Cl. B ......................... 400 18
Jabil Circuit, Inc. * ......................... 100 5
KLA-Tencor Corp. * ............................ 400 26
Lam Research Corp. * .......................... 500 23
Lattice Semiconductor Corp. * ................. 100 6
LSI Logic Corp. * ............................. 800 37
MedQuist, Inc. * .............................. 200 9
Methode Electronics, Inc. - Cl. A ............. 900 21
National Semiconductor Corp. * ................ 400 10
Novellus Systems, Inc. * ...................... 200 14
PE Corp-BE Biosystems Group ................... 100 11
PMC-Sierra, Inc. * ............................ 100 6
QLogic Corp. * ................................ 100 13
Sanmina Corp. * ............................... 100 8
Sawtek, Inc. * ................................ 100 5
Sterling Commerce, Inc. * ..................... 500 18
Stoneridge, Inc. .............................. 400 5
Teradyne, Inc. * .............................. 400 29
Uniphase Corp. * .............................. 100 17
Unitrode Corp. ................................ 300 9
Vishay Intertechnology, Inc. * ................ 375 8
Vitesse Semiconductor Corp. * ................. 200 13
Waters Corp. * ................................ 400 21
Xilinx, Inc. * ................................ 400 23
------
506
Energy - Alternative Source - 0.1%
Dynegy, Inc. .................................. 300 6
Engineering and Construction - 0.1%
URS Corp. ..................................... 300 9
Financial Services - 2.1%
Advanta Corp. - Cl. A ......................... 300 6
Financial Federal Corp. ....................... 200 4
Finova Group, Inc. ............................ 300 16
FirstFed Financial Corp. * .................... 500 10
GreenPoint Financial Corp. .................... 500 16
Heller Financial, Inc. ........................ 1,200 33
Long Beach Financial Corp. .................... 600 9
Paymentech, Inc. * ............................ 500 13
People's Bank - Bridgeport .................... 400 12
Sky Financial Group, Inc. ..................... 300 8
UniCapital Corp. * ............................ 700 4
------
131
85
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Food, Beverage and Tobacco - 1.7%
Corn Products International, Inc. ............. 200 $ 6
Fleming Cos., Inc. ............................ 1,300 15
Flowers Industries, Inc. ...................... 300 6
General Cigar Holdings, Inc. * ................ 1,000 8
IBP, Inc. ..................................... 500 12
International Multifoods Corp. ................ 200 5
J.M. Smucker Co. .............................. 700 16
Smithfield Foods, Inc. * ...................... 300 10
Suiza Foods Corp. * ........................... 100 4
SUPERVALU, Inc. ............................... 400 10
Universal Corp. ............................... 400 11
Weis Markets, Inc. ............................ 100 4
------
107
Health Care Products - 5.6%
Allergan, Inc. ................................ 500 55
Alpharma, Inc. - Cl A ......................... 900 32
Bausch & Lomb, Inc. ........................... 400 31
Bergen Brunswig Corp. - Cl. A ................. 800 14
Biomet, Inc. .................................. 200 8
Block Drug Co.- Cl. A ......................... 618 26
C.R. Bard, Inc. ............................... 500 24
Chiron Corp. * ................................ 400 8
Forest Laboratories, Inc. * ................... 200 9
Genzyme Corp. (General Division) * ............ 400 19
Genzyme Surgical Products * ................... 72
IVAX Corp. .................................... 1,000 14
Mallinckrodt, Inc. ............................ 400 14
Maxxim Medical, Inc. * ........................ 200 5
Medicis Pharmaceutical Corp. - Cl. A .......... 350 9
MedImmune, Inc. * ............................. 200 14
Mylan Laboratories, Inc. ...................... 400 11
Priority Healthcare Corp. - Cl. B ............. 844 29
ResMed, Inc. * ................................ 100 3
Roberts Pharmaceutical Corp. * ................ 400 10
Thermo BioAnalysis Corp. * .................... 300 5
VISX, Inc. * .................................. 200 16
------
356
Health Care Services - 2.3%
AmeriPath, Inc. * ............................. 500 4
AmeriSource Health Corp. - Cl.A * ............. 600 15
Beverly Enterprises, Inc. * ................... 1,800 15
Bindley Western Industries .................... 1,021 24
Biogen, Inc. * ................................ 600 39
Covance, Inc. * ............................... 200 5
NCS Healthcare, Inc. - Cl. A * ................ 800 4
Omnicare, Inc. ................................ 100 1
PacifiCare Health Systems, Inc. * ............. 400 29
Trigon Healthcare, Inc. * ..................... 200 7
Universal Health Services, Inc. - Cl. B * ..... 100 5
------
148
COMMON STOCK - CONTINUED
Household Appliances / Furnishings - 1.2%
Ethan Allen Interiors, Inc. ................... 450 17
HomeBase, Inc. ................................ 1,400 9
Mohawk Industries, Inc. * ..................... 100 3
Premark International, Inc. ................... 900 34
Shaw Industries, Inc. ......................... 200 3
Springs Industries, Inc. - Cl. A .............. 300 13
------
79
Housing - 1.5%
American Standard Cos., Inc. .................. 200 10
Centex Corp. .................................. 400 15
Champion Enterprises, Inc. * .................. 200 4
D.R. Horton, Inc. ............................. 800 13
Kaufman & Broad Home Corp. .................... 500 12
Monaco Coach Corp. * .......................... 200 9
National R.V. Holdings, Inc. * ................ 200 5
Owens Corning ................................. 500 17
Pulte Corp. ................................... 400 9
------
94
Insurance - 3.6%
Argonaut Group, Inc. .......................... 200 5
Arthur J. Gallagher & Co. ..................... 300 15
Capital Re Corp. .............................. 200 3
Commerce Group, Inc. .......................... 200 5
Delphi Financial Group, Inc. - Cl. A * ........ 412 15
E.W. Blanch Holdings, Inc. .................... 100 7
Everest Reinsurance Holdings .................. 400 13
FBL Financial Group - Cl. A ................... 900 18
Fidelity National Financial, Inc. ............. 410 9
First American Financial Corp. ................ 800 14
Fremont General Corp. ......................... 600 11
Frontier Insurance Group, Inc. ................ 400 6
Hilb, Rogal & Hamilton Co. .................... 600 13
LandAmerica Financial Group, Inc. ............. 100 3
Medical Assurance, Inc. ....................... 330 9
Nationwide Financial Services - Cl. A ......... 100 5
Old Republic International Corp. .............. 600 10
PMA Capital Corp. - Cl. A ..................... 700 14
Protective Life Corp. ......................... 400 13
Reinsurance Group of America .................. 450 16
Stewart Information Services Corp. ............ 500 11
White Mountains Insurance Group, Inc. ......... 100 14
------
229
Leisure and Recreation - 1.7%
Arctic Cat, Inc. .............................. 700 6
Brunswick Corp. ............................... 400 11
Callaway Golf Co. ............................. 500 7
Dover Downs Entertainment * ................... 600 11
Electronic Arts, Inc. * ....................... 300 16
International Game Technology ................. 200 4
International Speedway Corp. - Cl. A .......... 100 5
Mandalay Resort Group * ....................... 300 6
86
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Leisure and Recreation - Continued
Mattel, Inc. ................................. 240 $ 6
Premier Parks, Inc. * ......................... 400 15
Promus Hotel Corp. * ......................... 300 9
Sunburst Hospitality Corp. ................... 1,800 11
------
107
Machinery - 1.7%
Astec Industries, Inc. * ..................... 300 12
Columbus McKinnon Corp. ....................... 400 10
Commercial Intertech Corp. ................... 700 11
Imation Corp. * ............................... 600 15
JLG Industries, Inc. ......................... 400 8
NACCO Industries, Inc. - Cl. A ............... 300 22
Sauer, Inc. ................................... 600 6
SPX Corp. ..................................... 200 17
Tecumseh Products Co. - Cl. A . ............... 100 6
------
107
Media - Publishing - 1.1%
Big Flower Holdings, Inc. * ................... 500 16
Hollinger International, Inc. ................. 400 5
McClatchy Newspapers, Inc. ................... 800 27
Meredith Corp. ............................... 100 3
Pulitzer, Inc. ............................... 400 19
------
70
Media - TV / Radio - 1.8%
A.H. Belo Corp. - Common Ser. A ............... 400 8
Adelphia Communications Corp. - Cl. A ......... 200 13
BHC Communications, Inc. - Cl. A * ........... 100 13
Capstar Broadcasting Corp. - Cl. A * ......... 600 16
Chancellor Media Corp. * ..................... 200 11
Clear Channel Communications, Inc. * ......... 115 8
Hearst-Argyle Television, Inc. * ............. 527 13
King World Productions, Inc. * ............... 300 10
USA Networks, Inc. * ......................... 600 24
------
116
Metal Product and Fabrication - 0.2%
Metals USA, Inc. * ........................... 500 6
Timken Co. ................................... 300 6
------
12
Metals and Mining - 0.8%
Cyprus Amax Minerals Co. ..................... 1,100 17
Phelps Dodge Corp. ........................... 400 25
Precision Castparts Corp. ..................... 200 8
------
50
Natural Gas Distribution - 0.8%
KeySpan Corp. ................................. 440 12
Peoples Energy Corp. ......................... 100 4
Piedmont Natural gas Co. ..................... 100 3
UGI Corp. ..................................... 1,600 32
------
51
Oil - Equipment and Services - 0.7%
Berry Petroleum Co. ........................... 300 4
Pool Energy Services Co. * ................... 700 14
Tidewater, Inc. ............................... 800 25
------
43
Oil and Natural Gas Exploration and Production - 2.7%
Apache Corp. ................................. 500 19
Cabot Oil & Gas Corp. - Cl. A ................. 200 4
Devon Energy Corp. ........................... 100 4
Enron Oil & Gas Co. ........................... 300 6
Helmerich & Payne, Inc. ....................... 400 9
Kerr-McGee Corp. ............................. 1,100 55
Murphy Oil Corp. ............................. 1,000 49
Noble Affiliates, Inc. ....................... 200 6
Pennzoil-Quaker State Co. * ................... 100 1
Sunoco, Inc. ................................. 400 12
Ultramar Diamond Shamrock Corp. ............... 400 9
------
174
Paper and Forest Products - 1.7%
Boise Cascade Corp. ........................... 200 9
Consolidated Papers, Inc. ..................... 200 5
Georgia-Pacific Corp. (Timber Group) ......... 400 10
Louisiana-Pacific Corp. ....................... 200 5
Mead Corp. ................................... 300 13
Potlatch Corp. ............................... 400 18
Rayonier, Inc. ............................... 300 15
Temple-Inland, Inc. ........................... 300 20
Westvaco Corp. ............................... 500 14
------
109
Personal and Commercial Lending - 0.3%
Countrywide Credit Industries, Inc. ........... 200 9
Metris Cos., Inc. ............................. 318 13
------
22
Pollution Control - 0.1%
Allied Waste Industries, Inc. * ............... 300 6
Aqua Alliance, Inc. ........................... 2,800 3
------
9
Precious Metals/Gems/Stones - 0.5%
Freeport-McMoRan Copper & Gold ............... 1,200 21
Homestake Mining Co. ......................... 800 7
Placer Dome, Inc. ............................. 490 6
------
34
Real Estate Development - 0.5%
Lennar Corp. ................................. 500 12
Ryland Group, Inc. ........................... 600 18
------
30
87
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Real Estate Operations - 0.2%
M.D.C. Holdings, Inc. . . . . . . . . . . . . . 400 $ 8
Security Capital Group, Inc. - Cl. B * . . . . 400 6
------
14
Retail - Department Stores - 6.8%
99 Cents Only Stores * . . . . . . . . . . . . 125 6
Abercrombie & Fitch Co. * . . . . . . . . . . . 200 10
Amazon.com, Inc. * . . . . . . . . . . . . . . 200 25
Ames Department Stores, Inc. * . . . . . . . . 100 5
AnnTaylor Stores Corp. * . . . . . . . . . . . 400 18
Bed Bath & Beyond, Inc. * . . . . . . . . . . . 300 11
BJ's Wholesale Club, Inc. . . . . . . . . . . . 200 6
Claire's Stores, Inc. . . . . . . . . . . . . . 300 8
Department 56, Inc. . . . . . . . . . . . . . . 300 8
Dollar Thrifty Automotive Group, Inc. * . . . . 1,300 30
Dollar Tree Stores, Inc. * . . . . . . . . . . 600 26
Family Dollar Stores, Inc. . . . . . . . . . . 400 10
Handleman Co. . . . . . . . . . . . . . . . . . 500 6
Haverty Furniture Co., Inc. . . . . . . . . . . 600 21
Heilig-Meyers Co. . . . . . . . . . . . . . . . 800 5
Hollywood Entertainment Corp. * . . . . . . . . 1,400 27
Insight Enterprises, Inc. * . . . . . . . . . . 300 7
JLK Direct Distribution, Inc. * . . . . . . . . 500 5
Jo-Ann Stores, Inc. . . . . . . . . . . . . . . 200 3
Linens 'N Things, Inc. * . . . . . . . . . . . 200 9
Michaels Stores, Inc. * . . . . . . . . . . . . 200 6
Micro Warehouse, Inc. * . . . . . . . . . . . . 100 2
Musicland Stores Corp. * . . . . . . . . . . . 300 3
Neiman Marcus Group, Inc. * . . . . . . . . . . 500 13
Ross Stores, Inc. . . . . . . . . . . . . . . . 100 5
Saks, Inc. . . . . . . . . . . . . . . . . . . 500 14
Shopko Stores, Inc. . . . . . . . . . . . . . . 200 7
Talbots, Inc. . . . . . . . . . . . . . . . . . 200 8
The Finish Line - Cl. A * . . . . . . . . . . . 500 6
Tiffany & Co. . . . . . . . . . . . . . . . . . 700 67
Transport World Entertainment Corp. * . . . . . 500 6
Williams-Sonoma, Inc. . . . . . . . . . . . . . 400 14
Zale Corp. * . . . . . . . . . . . . . . . . . 800 32
------
429
Retail - Drug Stores - 0.0%
Longs Drug Stores, Inc. . . . . . . . . . . . . 100 3
Retail - Food - 0.9%
Brinker International, Inc. * . . . . . . . . . 800 22
Darden Restaurants, Inc. . . . . . . . . . . . 400 9
Luby's Cafeterias, Inc. . . . . . . . . . . . . 200 3
Michael Foods, Inc. . . . . . . . . . . . . . . 300 7
Outback Steakhouse, Inc. * . . . . . . . . . . 150 6
Ruby Tuesday, Inc. . . . . . . . . . . . . . . 400 7
Wendy's International, Inc. . . . . . . . . . . 200 6
------
60
Shoe and Apparel Manufacturing - 0.9%
Brown Shoe Co., Inc. . . . . . . . . . . . . . 500 11
Burlington Industries, Inc. * . . . . . . . . . 1,400 13
Jones Apparel Group, Inc. * . . . . . . . . . . 150 5
Kellwood Co. . . . . . . . . . . . . . . . . . 200 5
Liz Claiborne, Inc. . . . . . . . . . . . . . . 100 4
Russell Corp. . . . . . . . . . . . . . . . . . 200 4
Timberland Co. - Cl. A * . . . . . . . . . . . 200 13
WestPoint Stevens, Inc. * . . . . . . . . . . . 100 3
------
58
Steel - 1.5%
AK Steel Holding Corp. . . . . . . . . . . . . 800 18
Bethlehem Steel Corp. * . . . . . . . . . . . . 1,500 11
Citation Corp. . . . . . . . . . . . . . . . . 600 10
LTV Corp. . . . . . . . . . . . . . . . . . . . 1,200 8
National Steel Corp. - Cl. B * . . . . . . . . 1,300 11
Ryerson Tull, Inc. . . . . . . . . . . . . . . 305 7
Texas Industries, Inc. . . . . . . . . . . . . 200 8
USX-US Steel Group, Inc. . . . . . . . . . . . 700 19
------
92
Telecommunication Equipment - 1.8%
American Tower Corp. - Cl. A . . . . . . . . . 200 5
General Instrument Corp. * . . . . . . . . . . 500 21
QUALCOMM, Inc. * . . . . . . . . . . . . . . . 400 57
Scientific-Atlanta, Inc. . . . . . . . . . . . 700 25
Symbol Technologies, Inc. . . . . . . . . . . . 150 6
------
114
Telecommunication Services - 1.6%
Cellular Communications of Puerto Rico, Inc. * 400 11
COMSAT Corp. . . . . . . . . . . . . . . . . . 700 23
McLeodUSA, Inc. - Cl. A * . . . . . . . . . . . 200 11
United States Cellular Corp. * . . . . . . . . 700 38
West TeleServices Corp. * . . . . . . . . . . . 1,800 17
------
100
Telephone - 1.2%
Global TeleSystems Group, Inc. * . . . . . . . 100 8
Metromedia Fiber Network, Inc. - Cl. A * . . . 200 7
NEXTLINK Communications, Inc. * . . . . . . . . 400 30
Telephone and Data Systems, Inc. . . . . . . . 400 29
------
74
Transportation Services - 1.6%
Airbourne Freight Corp. . . . . . . . . . . . . 400 11
Alaska Air Group, Inc. * . . . . . . . . . . . 200 8
America West Holdings Corp. - Cl. B * . . . . . 500 9
Amtran, Inc. * . . . . . . . . . . . . . . . . 400 10
Arnold Industries, Inc. . . . . . . . . . . . . 600 9
CNF Transportation, Inc. . . . . . . . . . . . 100 4
Continental Airlines, Inc. - Cl. B * . . . . . 400 15
GATX Corp. . . . . . . . . . . . . . . . . . . 700 27
88
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - Continued
Ryder System, Inc. ............................ 300 $ 8
------
101
------
TOTAL COMMON STOCK- 95.9% 6,075
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.2%
Investment in joint repurchase agreement with
Goldman Sachs & Co. dated 6/30/99, 5.133% due
7/1/99 (Secured by $670,052 Federal National
Mortgage Assoc., 6.0% due 06/01/12 - 12/01/28,
Market Value $507,254) ....................... $ 200 200
TOTAL INVESTMENTS- 99.1% 6,275
Cash and Receivables, less payables- 0.9% 57
------- ------
NET ASSETS- 100.0% $6,332
======= ======
* Non-income producing security.
See notes to financial statements.
89
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Real Estate Development - 3.1%
Catellus Development Corp. * ...... 300,000 $ 4,650
Real Estate Investment Trust - 96.2%
AMB Property Corp. ................ 120,000 2,820
AMLI Residential Properties Trust . 66,700 1,492
Avalonbay Communities, Inc. ....... 185,245 6,854
Bradley Real Estate, Inc. ......... 160,000 3,320
Brandywine Realty Trust ........... 190,000 3,764
BRE Properties, Inc. .............. 225,000 5,836
Burnham Pacific Properties, Inc. .. 165,000 2,032
Camden Property Trust ............. 145,000 4,024
CarrAmerica Realty Corp. .......... 140,000 3,500
Chateau Communities, Inc. ......... 140,000 4,191
Cornerstone Properties, Inc. ...... 20,000 318
Cousins Properties, Inc. .......... 120,000 4,057
Crescent Real Estate Equities, Inc. 165,000 3,919
Developers Diversified Realty Corp. 215,000 3,574
Duke Realty Investments, Inc. ..... 225,000 5,077
Equity Office Properties Trust .... 255,093 6,537
Equity Residential Properties Trust 157,000 7,075
FelCor Lodging Trust, Inc. ........ 80,400 1,668
Franchise Finance Corp. of America 133,000 2,926
Highwoods Properties, Inc. ........ 100,000 2,744
JDN Realty Corp. .................. 190,000 4,251
JP Realty, Inc. ................... 120,000 2,468
Kilroy Realty Corp. ............... 165,000 4,022
Kimco Realty Corp. ................ 100,000 3,912
Liberty Property Trust ............ 190,000 4,726
Mack-Cali Realty Corp. ............ 125,000 3,867
Post Properties, Inc. ............. 124,700 5,113
Prentiss Properties Trust ......... 200,000 4,700
Prologis Trust .................... 137,059 2,775
Public Storage, Inc. .............. 135,000 3,780
Regency Realty Corp. .............. 160,000 3,510
Simon Property Group, Inc. ........ 144,000 3,654
Spieker Properties, Inc. .......... 83,800 3,258
Storage USA, Inc. ................. 99,700 3,178
Sun Communities, Inc. ............. 90,000 3,195
Sunstone Hotel Investors, Inc. .... 180,000 1,530
Vornado Realty Trust .............. 110,000 3,884
Weeks Corp. ....................... 135,600 4,136
--------
141,687
--------
TOTAL COMMON STOCK- 99.3% 146,337
-------- --------
TOTAL INVESTMENTS- 99.3% 146337
Cash and Receivables, less payables- 0.7% 1,002
-------- --------
NET ASSETS- 100.0% $147,339
======== ========
* Non-income producing security.
See notes to financial statements.
90
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 4.0%
Allied Signal, Inc....................... 209,000 $ 13,167
B.F. Goodrich Co......................... 369,900 15,721
General Dynamics Corp.................... 302,400 20,714
United Technologies Corp................. 1,604,600 115,030
----------
164,632
Auto and Truck Parts - 1.4%
Borg-Warner Automotive, Inc.............. 261,000 14,355
Dana Corp................................ 440,800 20,304
Lear Corp. *............................. 431,500 21,467
----------
56,126
Automobile - 1.3%
Ford Motor Co............................ 920,300 51,939
Banks - 5.8%
Bank of Amreica Corp..................... 455,000 33,357
Bank of New York Co., Inc................ 483,400 17,735
Bank One Corp............................ 145,100 8,643
Chase Manhattan Corp..................... 685,200 59,356
Comerica, Inc............................ 534,400 31,763
First Union Corp......................... 223,200 10,490
Mellon Bank Corp......................... 444,400 16,165
U.S. Bancorp............................. 317,600 10,798
Wells Fargo & Co......................... 1,191,500 50,937
----------
239,244
Brokerage and Investment Management - 0.7%
Morgan Stanley, Dean Witter, Discover &
Co...................................... 274,700 28,157
Chemicals - 0.9%
Air Products & Chemicals, Inc............ 597,900 24,065
W.R. Grace & Co.......................... 616,100 11,321
----------
35,386
Computer Equipment - 6.7%
Dell Computer Corp. *.................... 676,900 25,045
Hewlett-Packard Co....................... 558,000 56,079
Intel Corp............................... 1,743,400 103,733
International Business Machines Corp..... 647,800 83,728
Network Appliance, Inc. *................ 151,500 8,465
----------
277,050
Computer Software and Services - 6.3%
America Online, Inc. *................... 387,800 42,852
Computer Associates International, Inc... 314,200 17,281
EMC Corp. *.............................. 160,600 8,833
Microsoft Corp........................... 2,133,000 192,370
----------
261,336
Consumer - Miscellaneous - 2.9%
American Greetings Corp. - Cl. A......... 327,900 9,878
Avery Dennison Corp...................... 307,300 18,553
Black & Decker Corp...................... 576,100 36,366
Honeywell, Inc........................... 382,800 44,357
Unilever NV - NY Shares.................. 153,303 10,693
----------
119,847
Containers - 0.2%
Smurfit-Stone Container Corp. *.......... 477,000 9,808
Cosmetics and Personal Care Products - 1.7%
Avon Products, Inc....................... 252,800 14,030
Dial Corp................................ 442,800 16,467
Procter & Gamble Co...................... 431,000 38,467
----------
68,964
Diversified Operations - 6.3%
Danaher Corp............................. 127,300 7,399
General Electric Co...................... 1,378,900 155,816
Textron, Inc............................. 137,500 11,318
Tyco International, Ltd.................. 914,000 86,601
----------
261,134
Electric Power - 3.0%
Ameren Corp.............................. 588,100 22,568
Dominion Resources, Inc.................. 526,600 22,808
Florida Progress Corp.................... 700,900 28,956
FPL Group, Inc........................... 231,100 12,624
Peco Energy Co........................... 514,200 21,532
Reliant Energy, Inc...................... 489,500 13,523
----------
122,011
Electronic Products and Services - 3.2%
Applied Materials, Inc. *................ 368,300 27,208
Cisco Systems, Inc. *.................... 1,017,400 65,622
Pitney Bowes, Inc........................ 190,200 12,220
Teradyne, Inc. *......................... 260,800 18,713
Texas Instruments, Inc................... 71,600 10,382
----------
134,145
Financial Services - 3.9%
Associates First Capital Corp. - Cl. A * 639,800 28,351
Citigroup, Inc........................... 2,779,800 132,041
----------
160,392
Food, Beverage and Tobacco - 3.4%
Anheuser-Busch Cos., Inc................. 525,800 37,299
Flowers Industries, Inc.................. 79,500 1,724
H.J. Heinz Co............................ 292,900 14,682
Philip Morris Cos., Inc.................. 1,337,100 53,735
Quaker Oats Co........................... 375,700 24,937
Universal Foods Corp..................... 467,800 9,882
----------
142,259
Health Care Products - 9.0%
Abbott Laboratories...................... 1,058,000 48,139
Boston Scientific Corp. *................ 215,300 9,460
Bristol-Myers Squibb Co.................. 800,400 56,378
Cardinal Health, Inc..................... 1,018,450 65,308
Eli Lilly & Co........................... 158,900 11,381
91
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Glaxo Wellcome plc - ADR..................... 223,200 $ 12,639
Johnson & Johnson............................ 306,200 30,008
Merck & Co., Inc............................. 786,400 58,194
Mylan Laboratories, Inc...................... 800,000 21,200
Pfizer, Inc.................................. 222,700 24,441
Schering-Plough Corp......................... 666,500 35,324
----------
372,472
Health Care Services - 1.1%
HEALTHSOUTH Corp. *.......................... 2,348,000 35,073
Lincare Holdings, Inc........................ 443,300 11,083
----------
46,156
Household Appliances / Furnishings - 0.2%
Premark International, Inc................... 244,200 9,158
Housing - 0.3%
Masco Corp................................... 477,800 13,796
Insurance - 4.5%
American International Group, Inc............ 373,200 43,688
Equitable Cos., Inc.......................... 402,300 26,954
Hartford Financial Services Group, Inc....... 616,800 35,967
Hartford Life, Inc. - Cl. A.................. 169,300 8,909
Marsh & McLennan Cos., Inc................... 650,700 49,128
Travelers Property Casualty Corp. - Cl. A.... 502,700 19,668
----------
184,314
Machinery - 0.7%
Ingersoll-Rand Co............................ 460,650 29,770
Media - TV / Radio - 4.5%
CBS Corp. *.................................. 1,604,500 69,696
Clear Channel Communications, Inc. *......... 294,200 20,281
Time Warner, Inc............................. 702,100 51,604
Viacom, Inc. - Cl. B *....................... 1,013,300 44,585
----------
186,166
Natural Gas Distribution - 0.3%
Consolidated Natural Gas Co.................. 197,700 12,010
Oil - 1.1%
Royal Dutch Petroleum Co. - NY Shares........ 757,000 45,609
Oil and Natural Gas Exploration and Production - 2.7%
BP Amoco plc - ADR........................... 272,100 29,523
Exxon Corp................................... 626,600 48,327
Texaco, Inc.................................. 301,000 18,812
USX-Marathon Group........................... 436,400 14,210
----------
110,872
Personal and Commercial Lending - 0.4%
MBNA Corp.................................... 533,400 16,335
Pollution Control - 0.7%
Waste Management, Inc........................ 520,700 27,988
Retail - Department Stores - 5.6%
Dayton Hudson Corp........................... 320,400 20,826
Home Depot, Inc.............................. 1,032,900 66,558
Lowe's Cos., Inc............................. 660,400 37,436
Tandy Corp................................... 274,500 13,416
TJX Cos., Inc................................ 826,000 27,516
Wal-Mart Stores, Inc......................... 1,333,300 64,332
----------
230,084
Retail - Food - 0.9%
Albertson's, Inc............................. 525,300 27,086
Outback Steakhouse, Inc. *................... 215,100 8,456
----------
35,542
Shoe and Apparel Manufacturing - 0.3%
Tommy Hilfiger Corp. *....................... 147,000 10,805
Telecommunication Equipment - 3.7%
Lucent Technologies, Inc..................... 1,608,800 108,494
Nortel Networks Corp......................... 300,100 26,052
Tellabs, Inc. *.............................. 279,900 18,911
----------
153,457
Telephone - 8.5%
Ameritech Corp............................... 734,800 54,008
AT&T Corp.................................... 970,900 54,188
Bell Atlantic Corp........................... 858,400 56,118
BellSouth Corp............................... 708,400 33,206
GTE Corp..................................... 430,000 32,573
MCI WorldCom, Inc............................ 1,037,000 89,247
SBC Communications, Inc...................... 413,700 23,995
Sprint Corp.................................. 142,000 7,499
----------
350,834
Transportation Services - 1.8%
Burlington Northern Santa Fe................. 828,600 25,687
Kansas City Southern Industries, Inc......... 436,200 27,835
U.S. Airways Group, Inc. *................... 191,500 8,342
UAL Corp..................................... 207,700 13,500
75,364
U.S. Government Agencies - 1.4%
Federal National Mortgage Assoc.............. 828,600 56,656
----------
TOTAL COMMON STOCK- 99.4% 4,099,818
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.5%
Investment in joint trading account
(Note B)
5.291% due 07/01/99......................... $ 20,347 20,350
---------- ----------
TOTAL INVESTMENTS- 99.9% 4,120,168
Cash and Receivables, less payables- 0.1% 3,037
---------- ----------
NET ASSETS- 100.0% $4,123,205
========== ==========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
92
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.9%
B.F. Goodrich Co. (US) ............. 408,500 $ 17,361
General Dynamics Corp. (US) ......... 120,300 8,241
United Technologies Corp. (US) ..... 531,400 38,095
----------
63,697
Auto and Truck Parts - 0.5%
Borg-Warner Automotive, Inc. (US) ... 97,900 5,384
Dana Corp. (US) ..................... 109,300 5,035
Lear Corp. * (US) ................... 102,700 5,109
----------
15,528
Automobile - 0.7%
Ford Motor Co. (US) ................. 415,900 23,472
Banks - 4.8%
Bank of Amreica Corp. (US) ......... 449,847 32,979
Bank of New York Co., Inc. (US) ..... 195,800 7,183
Bank One Corp. (US) ................. 296,336 17,651
Chase Manhattan Corp. (US) ......... 335,400 29,054
Comerica, Inc. (US) ................. 342,900 20,381
Fifth Third Bancorp (US) ........... 129,900 8,647
Fleet Financial Group, Inc. (US) ... 225,000 9,984
Golden West Financial Corp. (US) ... 71,700 7,027
Mellon Bank Corp. (US) ............. 166,100 6,042
Wells Fargo & Co. (US) ............. 586,300 25,064
----------
164,012
Chemicals - 0.3%
Solutia, Inc. (US) ................. 441,900 9,418
Commercial Services - 0.2%
Omnicom Group, Inc. (US) ........... 85,000 6,800
Computer Equipment - 4.0%
Dell Computer Corp. * (US) ......... 424,800 15,718
Hewlett-Packard Co. (US) ........... 130,400 13,105
Intel Corp. (US) ................... 847,200 50,409
International Business Machines Corp.
(US) ............................... 420,000 54,285
Network Appliance, Inc. * (US) ..... 82,100 4,587
----------
138,104
Computer Software and Services - 3.6%
America Online, Inc. * (US) ......... 180,600 19,957
Cadence Design Systems, Inc. *
(US) ............................... 350,600 4,470
Computer Associates International,
Inc. (US) ......................... 179,600 9,878
Microsoft Corp. (US) ............... 1,008,900 90,990
----------
125,295
Consumer - Miscellaneous - 1.7%
Black & Decker Corp. (US) ........... 392,500 24,777
Honeywell, Inc. (US) ............... 239,900 27,798
Unilever NV - NY Shares (US) ....... 66,700 4,652
----------
57,227
Cosmetics and Personal Care Products - 0.5%
Avon Products, Inc. (US) ........... 95,800 5,317
Dial Corp. (US) ..................... 156,600 5,824
Procter & Gamble Co. (US) ........... 70,000 6,247
----------
17,388
Diversified Operations - 4.2%
General Electric Co. (US) ........... 693,000 78,309
Illinois Tool Works, Inc. (US) ..... 70,000 5,740
Reynolds & Reynolds Co. - Cl. A (US) 179,500 4,185
Textron, Inc. (US) ................. 124,000 10,207
Tyco International, Ltd. (US) ....... 494,200 46,825
----------
145,266
Electric Power - 1.6%
Ameren Corp. (US) ................... 253,900 9,743
Dominion Resources, Inc. (US) ....... 252,000 10,915
Florida Progress Corp. (US) ......... 330,100 13,637
Peco Energy Co. (US) ............... 305,800 12,805
Reliant Energy, Inc. (US) ........... 220,000 6,078
----------
53,178
Electronic Products and Services - 2.7%
Analog Devices, Inc. * (US) ......... 1
Applied Materials, Inc. * (US) ..... 114,500 8,459
Cisco Systems, Inc. * (US) ......... 636,800 41,073
Pitney Bowes, Inc. (US) ............. 155,300 9,978
Teradyne, Inc. * (US) ............... 85,000 6,099
Texas Instruments, Inc. (US) ....... 176,000 25,520
----------
91,129
Financial Services - 2.2%
Associates First Capital Corp. -
Cl. A* (US) ........................ 218,002 9,660
Citigroup, Inc. (US) ............... 1,421,250 67,510
----------
77,170
Food, Beverage and Tobacco - 2.6%
Anheuser-Busch Cos., Inc. (US) ..... 284,500 20,182
Flowers Industries, Inc. (US) ....... 347,400 7,534
General Mills, Inc. (US) ........... 140,500 11,293
H.J. Heinz Co. (US) ................. 137,800 6,907
Philip Morris Cos., Inc. (US) ....... 720,800 28,967
Quaker Oats Co. (US) ............... 101,400 6,730
Universal Foods Corp. (US) ......... 421,800 8,911
----------
90,524
Health Care Products - 5.8%
Abbott Laboratories (US) ........... 357,100 16,248
Amgen, Inc. * (US) ................. 147,700 8,991
Bristol-Myers Squibb Co. (US) ....... 465,000 32,753
Cardinal Health, Inc. (US) ......... 473,850 30,386
Eli Lilly & Co. (US) ............... 130,800 9,369
Guidant Corp. * (US) ............... 89,300 4,593
Johnson & Johnson (US) ............. 174,100 17,062
93
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Merck & Co., Inc. (US) ............. 468,200 $ 34,647
Mylan Laboratories, Inc. (US) ....... 180,000 4,770
Pfizer, Inc. (US) ................... 123,800 13,587
Schering-Plough Corp. (US) ......... 330,000 17,490
Warner-Lambert Co. (US) ............. 150,000 10,406
----------
200,302
Health Care Services - 0.7%
HEALTHSOUTH Corp. * (US) ........... 1,075,100 16,059
Lincare Holdings, Inc. (US) ......... 191,300 4,783
Omnicare, Inc. (US) ................. 292,600 3,694
----------
24,536
Housing - 0.2%
Centex Corp. (US) ................... 168,000 6,311
Insurance - 3.1%
Allstate Corp. (US) ................. 308,000 11,049
American International Group, Inc.
(US) ............................... 138,325 16,193
Equitable Cos., Inc. (US) ........... 126,300 8,462
Hartford Financial Services Group,
Inc. (US) ......................... 540,600 31,524
Hartford Life, Inc. - Cl. A (US) ... 100,000 5,263
Marsh & McLennan Cos., Inc. (US) ... 355,950 26,874
Travelers Property Casualty Corp. -
Cl. A (US) ......................... 169,900 6,647
----------
106,012
Leisure and Recreation - 0.3%
Mattel, Inc. (US) ................... 355,000 9,385
Machinery - 0.5%
Ingersoll-Rand Co. (US) ............. 283,900 18,347
Media - TV / Radio - 2.7%
CBS Corp. * (US) ................... 405,700 17,622
Clear Channel Communications, Inc. *
(US) ............................... 300,000 20,681
Time Warner, Inc. (US) ............. 558,500 41,050
Viacom, Inc. - Cl. B * (US) ......... 334,400 14,714
----------
94,067
Metals and Mining - 0.2%
Precision Castparts Corp. (US) ..... 143,700 6,107
Oil - 0.8%
Royal Dutch Petroleum Co. - NY Shares
(US) ............................... 459,100 27,661
Oil and Natural Gas Exploration and Production - 1.9%
BP Amoco plc - ADR (US) ............. 160,300 17,392
Exxon Corp. (US) ................... 271,300 20,924
Mobil Corp. (US) ................... 156,000 15,444
Texaco, Inc. (US) ................... 181,500 11,344
----------
65,104
Pollution Control - 0.5%
Allied Waste Industries, Inc. * (US). 282,000 5,570
Waste Management, Inc. (US) ......... 225,400 12,115
----------
17,685
Retail - Department Stores - 3.0%
Dayton Hudson Corp. (US) ........... 80,000 5,200
Home Depot, Inc. (US) ............... 439,900 28,346
Lowe's Cos., Inc. (US) ............. 361,000 20,464
May Department Stores Co. (US) ..... 125,000 5,109
TJX Cos., Inc. (US) ................. 183,700 6,120
Wal-Mart Stores, Inc. (US) ......... 789,400 38,089
----------
103,328
Retail - Food - 0.5%
Albertson's, Inc. (US) ............. 240,000 12,375
Outback Steakhouse, Inc. * (US) ..... 136,000 5,347
----------
17,722
Shoe and Apparel Manufacturing - 0.5%
Tommy Hilfiger Corp. * (US) ......... 214,700 15,780
Telecommunication Equipment - 1.7%
Lucent Technologies, Inc. (US) ..... 528,300 35,627
Nortel Networks Corp. (US) ......... 169,400 14,706
Tellabs, Inc. * (US) ............... 136,600 9,229
----------
59,562
Telephone - 5.3%
Ameritech Corp. (US) ............... 393,500 28,922
AT&T Corp. (US) ..................... 578,000 32,259
Bell Atlantic Corp. (US) ........... 260,700 17,043
BellSouth Corp. (US) ............... 746,200 34,978
GTE Corp. (US) ..................... 76,500 5,795
MCI WorldCom, Inc. (US) ............. 498,100 42,868
SBC Communications, Inc. (US) ....... 86,500 5,017
Sprint Corp. (US) ................... 290,000 15,316
----------
182,198
Transportation Services - 1.2%
Airbourne Freight Corp. (US) ....... 160,000 4,430
Alaska Air Group, Inc. * (US) ....... 116,200 4,851
Burlington Northern Santa Fe (US) ... 321,700 9,973
Delta Air Lines, Inc. (US) ......... 67,700 3,901
Kansas City Southern Industries, Inc.
(US) ............................... 130,400 8,321
Northwest Airlines Corp. * (US) ..... 173,000 5,622
UAL Corp. (US) ..................... 79,500 5,168
----------
42,266
U.S. Government Agencies - 0.8%
Federal National Mortgage Assoc. (US) 424,100 28,998
----------
TOTAL COMMON STOCK- 61.2% 2,103,579
94
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Automobile - 0.5%
Ford Motor Co. - Bonds (US)
6.625% due 10/01/28 ............... $ 17,800 $ 16,126
Banks - 2.2%
Banponce Financial Corp. Mountain Bank
Ent - Ser C. (US)
6.58% due 11/25/03 ................. 11,040 10,807
Capital One Bank - Notes (US)
7.08% due 10/30/01 ................. 2,950 2,966
Chase Manhattan Corp. - Sub. Notes
(US) 6.0% due 02/15/09 ............ 5,500 5,093
Deutsche Ausgleichsbank (DE)
4.0% due 07/04/09 ................. 6,000 5,797
European Investment Bank - Notes (JP)
3.0% due 09/20/06 ................. 200,000 1,820
European Investment Bank - Sr. Unsub.
(LU) 6.0% due 11/26/04 ............. 1,800 2,852
International Bank Reconstruction &
Development - Debs. (US)
4.5% due 06/20/00 ................. 1,115,000 9,599
4.5% due 03/20/03 ................. 1,030,000 9,694
4.75% due 12/20/04 ................. 225,000 2,210
9.25% due 07/20/07 ................. 2,920 5,546
International Bank Reconstruction &
Development - Notes (US)
2.0% due 02/18/08 ................. 960,000 8,139
J.P. Morgan & Co., Inc. - Sr. Notes
(US) 5.75% due 02/25/04 ............ 3,000 2,892
Korea Development Bank (US)
7.375% due 09/17/04 ............... 8,300 8,150
----------
75,565
Brokerage and Investment Management - 0.5%
Lehman Brothers Holdings, Inc. - Notes
(US)
6.375% due 03/15/01 ............... 5,900 5,863
6.625% due 04/01/04 ............... 10,950 10,684
----------
16,547
Diversified Operations - 0.3%
Tyco International Group SA (US)
6.875% due 01/15/29 ............... 10,000 9,134
Financial Services - 4.7%
Amresco Commercial Mortgage Funding I
- Ser. 1997-C1 Cl. A3 (US)
7.19% due 06/17/29 ................. 6,980 7,064
Associates Corp. of North America -
Sr. Notes (US)
5.5% due 02/15/02 ................. 4,000 3,922
AT&T Capital Corp. (US)
6.875% due 01/16/01 ............... 14,035 13,994
Baden-Wurttemberg L-Finance BV (DE)
6.75% due 06/22/05 ................. 9,500 5,576
Capital One Financial Corp. - Notes
(US) 7.25% due 12/01/03 ............ 10,000 9,881
Chase Commercial Mortgage Securities
Corp. - Ser. 1997-1 Cl. A2 (US)
7.37% due 02/19/07 ................. 13,300 13,587
Citibank Credit Card Master Trust I
(US) 5.3% due 01/09/06 ............. 12,415 11,859
Citibank Credit Card Master Trust I -
Notes (US) 5.85% due 04/10/03 ...... 31,735 31,621
Contimortgage Home Equity Loan Trust
(US) 6.0% due 12/25/16 ............ 15,000 14,826
Green Tree Financial Corp. (US)
6.68% due 01/15/29 ................. 12,400 12,482
KFW International Finance - Debs.
(US) 10.625% due 09/03/01 .......... 1,600 2,756
Mortgage Capital Funding, Inc. - Ser.
1996 - MC2 Cl. A1 (US)
6.758% due 02/20/04 ............... 8,019 8,066
PNC Funding Corp. (US)
6.125% due 02/15/09 ............... 10,000 9,281
Residential Asset Securities Corp.
(US) 6.11% due 05/25/24 ............ 10,000 9,847
Southern Pacific Secured Assets Corp.
(US) 6.27% due 02/25/18 ............ 5,940 5,933
----------
160,695
Food, Beverage and Tobacco - 0.4%
Philip Morris Cos., Inc. (US)
7.625% due 05/15/02 ............... 5,670 5,808
Philip Morris Cos., Inc. - Debs.
(US) 8.25% due 10/15/03 ............ 7,555 7,981
----------
13,789
Foreign - 0.3%
Queensland Treasury Corp. (AU)
8.0% due 08/14/01 ................. 1,460 1,012
8.0% due 09/14/07 ................. 1,700 1,233
Queensland Treasury Corp. - Bonds
(AU) 6.5% due 06/14/05 ............ 600 402
Treuhandanstalt (DE)
7.75% due 10/01/02 ................. 6,410 7,437
----------
10,084
Foreign Governmental - 5.3%
Government of Canada - Debs. (CA)
7.5% due 03/01/01 ................. 500 351
9.75% due 06/01/21 ................. 2,370 2,418
11.0% due 06/01/09 ................. 2,450 2,348
12.0% due 03/01/05 ................. 1,750 1,557
Government of France - Bonds (FR)
8.5% due 04/25/03 ................. 8,180 9,821
9.5% due 01/25/01 ................. 6,860 7,750
Government of Japan - Bonds (JP)
2.1% due 03/20/08 ................. 700,000 5,950
2.6% due 06/20/08 ................. 115,000 926
95
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Foreign Governmental - Continued
Government of Japan - Bonds (JP)
2.6% due 03/20/19 .................. $ 640,000 $ 5,136
4.7% due 09/22/03 .................. 550,000 5,245
Government of Netherlands - Bonds (NL)
7.75% due 03/01/05 .................. 27,000 32,788
8.25% due 02/15/02 .................. 4,810 5,536
8.75% due 05/01/00 .................. 4,000 4,318
Government of Sweden - Bonds (SE)
10.25% due 05/05/00 ................ 6,800 845
Government of Sweden - Debs. (SE)
6.5% due 10/25/06 .................. 7,100 918
6.75% due 05/05/14 .................. 7,000 932
10.25% due 05/05/03 ................ 12,900 1,827
Hydro-Quebec - Bonds (CA)
10.875% due 07/25/01 ................ 500 373
Kingdom of Denmark - Bonds (DK)
7.0% due 11/15/07 .................. 4,000 632
7.0% due 11/10/24 .................. 5,000 796
8.0% due 05/15/03 .................. 9,000 1,419
9.0% due 11/15/00 .................. 13,100 1,947
Kingdom of Spain - Notes (ES)
3.1% due 09/20/06 .................. 2,180,000 19,821
Ontario-Hydro (CA)
9.0% due 06/24/02 .................. 4,150 3,065
Province of Ontario (US)
7.75% due 06/04/02 .................. 4,000 4,144
Province of Quebec - Debs. (US)
7.5% due 07/15/23 .................. 22,000 22,208
Republic of Chile (US)
6.875% due 04/28/09 ................ 1,000 940
Republic of Italy - Debs. (IT)
8.5% due 01/01/04 .................. 6,800 8,209
9.0% due 11/01/23 .................. 9,270 13,579
10.5% due 04/28/14 .................. 4,300 9,783
Republic of Italy - Notes (IT)
3.5% due 06/20/01 .................. 800,000 7,013
----------
182,595
Health Care Services - 0.4%
Tenet Healthcare Corp. (US)
8.0% due 01/15/05 .................. 14,000 13,650
Media - TV / Radio - 0.7%
Time Warner, Inc. - Notes (US)
8.11% due 08/15/06 .................. 7,000 7,327
8.18% due 08/15/07 .................. 5,770 6,101
Viacom, Inc. - Sr. Notes (US)
7.75% due 06/01/05 .................. 11,525 11,856
----------
25,284
Municipals - 0.2%
Tennessee Valley Authority - Bonds
(DE) 6.375% due 09/18/06 ........... 11,000 6,419
Natural Gas Distribution - 0.2%
Consolidated Edison, Inc. - Debs. (US)
6.45% due 12/01/07 .................. 4,200 4,118
Williams Cos., Inc. - Notes (US)
6.125% due 02/01/01 ................ 4,525 4,493
----------
8,611
Oil - 0.1%
Conoco, Inc. - Notes (US)
5.9% due 04/15/04 .................. 2,000 1,949
Oil - Equipment and Services - 0.4%
Beckman Instruments, Inc. (US)
7.1% due 03/04/03 .................. 6,000 5,847
Petroleum Geo-Services ASA - Notes
(US) 7.5% due 03/31/07 ............. 6,430 6,432
----------
12,279
Personal and Commercial Lending - 2.1%
Chase Manhattan Credit Card Master
Trust (US) 7.04% due 02/15/05 ....... 4,000 4,071
Countrywide Home Loan Corp. (US)
6.25% due 04/15/09 .................. 800 737
EQCC Home Equity Loan Trust (US)
6.223% due 06/25/11 ................ 9,300 9,246
Ford Motor Credit Co. (US)
5.25% due 06/16/08 .................. 7,250 3,814
Ford Motor Credit Co. - Notes (US)
6.125% due 04/28/03 ................ 5,000 4,927
General Motors Acceptance Corp. (US)
5.5% due 01/14/02 .................. 5,000 4,902
4.0% due 02/09/06 .................. 6,800 6,694
Household Finance Corp. (US)
5.125% due 06/24/09 ................ 6,300 6,353
Household Finance Corp. - Notes (US)
6.0% due 05/01/04 .................. 4,000 3,876
MBNA Master Credit Card Trust (US)
6.6% due 11/15/04 .................. 4,025 4,064
Money Store Home Equity Trust- Ser.
1996-B A7 (US) 7.55% due 02/15/20 ... 12,547 12,677
Residential Funding Mortgage
Securities (US) 6.78% due 07/25/10 .. 9,740 9,752
----------
71,113
Retail - Department Stores - 0.2%
Federated Department Stores, Inc. -
Sr. Notes (US) 8.5% due 06/15/03 ... 7,445 7,887
Telephone - 1.1%
AT&T Corp. - Notes (US)
5.625% due 03/15/04 ................ 4,000 3,873
6.5% due 03/15/29 .................. 15,840 14,246
MCI WorldCom, Inc. - Notes (US)
7.75% due 04/01/07 .................. 9,060 9,468
96
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telephone - Continued
Sprint Capital Corp. (US)
6.9% due 05/01/19 ................. $ 11,000 $ 10,237
----------
37,824
Transportation Services - 0.1%
Norfolk Southern Corp. - Bonds (US)
7.8% due 05/15/27 ................. 3,600 3,717
U.S. Government Agencies - 12.5%
Federal Home Loan Mortgage Corp. (US)
6.0% due 03/15/17 ................. 16,267 16,130
Federal National Mortgage Assoc. (US)
6.0% due 05/15/08 ................. 7,500 7,274
6.0% due 04/25/12 ................. 11,740 11,710
6.0% due 07/20/14 ................. 70,760 68,350
6.0% due 09/25/14 ................. 22,745 22,510
6.0% due 07/20/29 ................. 77,980 73,253
6.5% due 07/20/14 ................. 21,390 21,076
6.5% due 07/20/29 ................. 36,015 34,743
7.0% due 04/01/29 ................. 22,010 22,110
7.5% due 08/20/29 ................. 20,620 20,781
Government National Mortgage Assoc.
(US)
6.5% due 07/20/29 ................. 48,910 47,038
7.0% due 07/20/29 ................. 55,755 55,005
8.0% due 12/15/17 ................. 28,870 30,016
----------
429,996
U.S. Governmental - 5.2%
U.S. Treasury - Bonds (US)
5.25% due 11/15/28 ................. 37,130 32,913
6.75% due 08/15/26 # ............... 39,185 41,952
8.875% due 08/15/17 ............... 9,500 12,136
U.S. Treasury - Notes (US)
5.75% due 04/30/03 ................. 3,000 3,005
6.25% due 05/31/00 ................. 14,000 14,114
6.625% due 07/31/01 ............... 62,900 64,207
7.0% due 07/15/06 ................. 10,200 10,804
----------
179,131
----------
TOTAL PUBLICLY-TRADED BONDS- 37.3% 1,282,395
SHORT-TERM INVESTMENTS - 10.0%
Investment in joint trading account
(Note B)
5.291% due 07/01/99 ............... 344,520 344,569
----------- ----------
TOTAL INVESTMENTS- 108.5% 3,730,543
Payables, less cash and receivables- (8.5)% (292,652)
----------- ----------
NET ASSETS- 100.0% $3,437,891
=========== ==========
* Non-income producing security.
ADR -American Depository Receipt
# Securities, or a portion thereof, with an aggregate market value of $1,981
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Country Value Long-Term
Abbreviation (000's) Investments
United States US 3,191,770 94.2%
Netherlands NL 42,642 1.3%
Italy IT 38,583 1.1%
Japan JP 25,430 0.8%
Germany DE 25,230 0.8%
Spain ES 19,821 0.6%
France FR 17,571 0.5%
Canada CA 10,113 0.3%
Denmark DK 4,794 0.1%
Sweden SE 4,522 0.1%
Luxembourg LU 2,852 0.1%
Australia AU 2,646 0.1%
---------- ------
$3,385,974 100.0%
========== ======
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Banks - 11.3%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ......................... $1,900 $ 1,870
Banponce Corp. - Notes
6.54% due 11/06/01 .......................... 1,000 990
6.55% due 10/10/00 .......................... 1,100 1,099
Capital One Bank - Notes
7.0% due 04/30/01 ........................... 1,000 1,004
First Hawaiian, Inc. - Sub. Notes
6.25% due 08/15/00 .......................... 2,000 2,000
Westpac Banking Corp. - Sub. Debs.
9.125% due 08/15/01 ......................... 1,000 1,050
-------
8,013
Brokerage and Investment Management - 9.5%
Donaldson, Lufkin & Jenrette, Inc. - Sr. Notes
5.875% due 04/01/02 ......................... 1,900 1,872
Lehman Brothers Holdings, Inc. - Notes
6.375% due 03/15/01 ......................... 470 467
6.625% due 04/01/04 ......................... 550 537
Merrill Lynch & Co., Inc. - Notes
5.87% due 11/15/01 .......................... 2,400 2,377
Paine Webber Group, Inc. - Notes
7.0% due 03/01/00 ........................... 1,500 1,506
-------
6,759
Consumer - Miscellaneous - 2.1%
Black & Decker Corp. - Notes
8.44% due 11/01/99 .......................... 1,500 1,512
Cosmetics and Personal Care Products - 2.8%
Dial Corp. - Notes
5.9% due 10/25/01 ........................... 2,000 1,957
Diversified Operations - 4.5%
CMS Panhandle Holding - Sr. Notes 144A (a)
6.125% due 03/15/04 ......................... 1,000 973
Tyco International Group SA
6.125% due 06/15/01 ......................... 2,200 2,192
-------
3,165
Electric Power - 2.8%
Niagara Mohawk Power Corp. - Sr. Notes
6.5% due 07/01/99 ........................... 2,000 2,000
Financial Services - 6.6%
AT&T Capital Corp.
6.875% due 01/16/01 ......................... 910 907
Contimortgage Home Equity Loan Trust
6.18% due 07/15/12 .......................... 520 519
Gatx Capital Corp. - Notes
6.5% due 11/01/00 ........................... 1,750 1,752
Heller Financial, Inc. - Notes
6.25% due 03/01/01 .......................... 1,500 1,499
-------
4,677
Food, Beverage and Tobacco - 2.5%
Philip Morris Cos., Inc. - Debs.
9.0% due 01/01/01 ........................... 1,700 1,760
Health Care Services - 2.8%
Tenet Healthcare Corp. - Sr. Notes
8.625% due 12/01/03 ......................... 2,000 2,010
Media - TV / Radio - 1.5%
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 ........................... 1,010 1,054
Natural Gas Distribution - 2.2%
Williams Cos., Inc. - Notes
6.125% due 02/01/01 ......................... 1,600 1,589
Oil - 0.8%
Conoco, Inc. - Notes
5.9% due 04/15/04 ........................... 550 536
Oil - Equipment and Services - 5.2%
Beckman Instruments, Inc.
7.1% due 03/04/03 ........................... 1,475 1,438
Gulf Canada Resources, Ltd. - Debs.
9.0% due 08/15/99 ........................... 1,250 1,254
Petroleum-Geo Services ASA - Bonds
6.25% due 11/19/03 ......................... 1,000 967
-------
3,659
Oil and Natural Gas Exploration and Production - 1.4%
Occidental Petroleum Corp. - Notes
8.5% due 11/09/01 ........................... 1,000 1,030
Personal and Commercial Lending - 11.7%
American General Finance Corp. - Notes
5.75% due 11/23/01 .......................... 2,770 2,729
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 ......................... 1,500 1,478
General Motors Acceptance Corp. - Notes
5.95% due 04/20/01 .......................... 1,200 1,194
MBNA America Bank N.A. - Notes
5.96% due 08/10/00 .......................... 2,000 1,986
Money Store Home Equity Trust- Ser. 1997-D AF3
6.345% due 11/15/21 ......................... 915 917
-------
8,304
Pollution Control - 4.5%
WMX Technologies, Inc. - Notes
7.125% due 06/15/01 ......................... 570 576
8.25% due 11/15/99 .......................... 2,600 2,620
-------
3,196
98
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Real Estate Investment Trust - 3.4%
Franchise Finance Corp. of America - Sr. Notes
7.0% due 11/30/00 ............................ $2,400 $ 2,390
Retail - Department Stores - 3.0%
Dillard's, Inc. - Notes
5.79% due 11/15/01 ........................... 975 955
Federated Department Stores, Inc. - Sr. Notes
8.5% due 06/15/03 ............................ 1,090 1,154
-------
2,109
Telephone - 4.2%
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 .......................... 3,000 2,985
Transportation Services - 2.8%
Norfolk Southern Corp. - Notes
6.875% due 05/01/01 .......................... 2,000 2,015
U.S. Government Agencies - 7.1%
Federal Home Loan Bank
8.0% due 06/01/10 ............................ 1,781 1,834
Federal National Mortgage Assoc
6.0% due 04/25/12 ............................ 910 908
7.0% due 12/01/10 ............................ 2,297 2,307
-------
5,049
U.S. Governmental - 1.9%
U.S. Treasury - Notes
6.25% due 02/28/02 ........................... 1,325 1,345
-------
TOTAL PUBLICLY-TRADED BONDS- 94.6% 67,114
SHORT-TERM INVESTMENTS - 3.9%
Investment in joint trading account (Note B)
5.291% due 07/01/99 ..................... 2,771 2,771
------- -------
TOTAL INVESTMENTS- 98.5% 69,885
Cash and Receivables, less payables- 1.5% 1,061
------- -------
NET ASSETS- 100.0% $70,946
======= =======
(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 June 30, 1999, securities aggregated
$973 or 1.4% of net assets of the Portfolio.
See notes to financial statements.
99
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.0%
BE Aerospace, Inc. *........................ 12,000 $ 224
Esterline Technologies Corp. *.............. 14,100 203
GenCorp, Inc. .............................. 9,900 250
-------
677
Auto and Truck Parts - 1.9%
Arvin Industries, Inc. ..................... 17,700 670
Avis Rent A Car, Inc. *..................... 8,100 236
Standard Products Co. ...................... 17,600 451
-------
1,357
Automobile - 1.2%
Copart, Inc. ............................... 14,000 297
Oshkosh Truck Corp. ........................ 11,400 574
-------
871
Banks - 9.4%
Anchor Bancorp Wisconsin, Inc. ............. 11,600 207
Commerce Bancorp, Inc. ..................... 18,086 773
Downey Financial Corp. ..................... 20,090 441
First Republic Bank *....................... 13,100 379
Firstbank Corp. - Puerto Rico............... 7,400 167
Flagstar Bancorp, Inc. ..................... 20,900 528
GBC Bancorp................................. 14,200 288
Hudson United Bancorp....................... 20,343 623
Imperial Bancorp * ......................... 33,642 666
Ocean Financial Corp. ...................... 18,000 326
Pacific Capital Bancorp..................... 4,800 151
PFF Bancorp, Inc. *......................... 17,200 322
Provident Bankshares Corp. *................ 8,599 200
Republic Bancorp, Inc. ..................... 37,100 563
Riggs National Corp. ....................... 9,000 185
Roslyn Bancorp, Inc. ....................... 15,170 261
Silicon Valley Bancshares *................. 12,200 302
Southwest Bancorporation of Texas, Inc. *... 13,200 238
-------
6,620
Brokerage and Investment Management - 1.1%
Affiliated Managers Group, Inc. *........... 7,100 214
Southwest Securities Group, Inc. ........... 8,000 574
-------
788
Business Services - 1.3%
American Management Systems, Inc. *......... 8,800 282
Labor Ready, Inc. *......................... 8,800 286
ProBusiness Services, Inc. *................ 4,800 172
Resource Bancshares Mortgage Group.......... 15,600 160
-------
900
Chemicals - 2.6%
Ferro Corp. ................................ 12,000 330
Geon Co. ................................... 8,000 258
MacDermid, Inc. ............................ 6,900 321
Spartech Corp. ............................. 10,500 332
W.R. Grace & Co. ........................... 30,900 568
-------
1,809
Commercial Services - 5.1%
ADVO, Inc. ................................. 8,100 168
Bowne & Co., Inc. .......................... 11,400 148
DeVry, Inc. *............................... 16,800 376
DII Group, Inc. *........................... 11,300 422
HA-LO Industries, Inc. *.................... 19,350 191
Lason, Inc. *............................... 13,100 650
Mail-Well Holdings, Inc. *.................. 12,600 204
Plexus Corp. *.............................. 5,900 178
Pre-Paid Legal Services, Inc. *............. 18,100 492
Sylvan Learning Systems, Inc. *............. 8,400 228
True North Communications................... 9,200 276
Veritas DGC, Inc. *......................... 12,700 233
-------
3,566
Computer Equipment - 2.2%
Cerner Corp. *.............................. 10,300 216
InterVoice, Inc. *.......................... 11,800 170
Micron Electronics, Inc. *.................. 10,400 105
MMC Networks, Inc. *........................ 12,600 564
Sequent Computer Systems, Inc. *............ 16,900 300
Xircom, Inc. *.............................. 6,000 180
-------
1,535
Computer Software and Services - 8.9%
Acclaim Entertainment, Inc. *............... 21,500 137
AnswerThink Consulting Group, Inc. *........ 5,400 136
Aspect Development, Inc. *.................. 24,300 450
AVT Corp. *................................. 8,400 318
BroadVision, Inc. *......................... 12,200 900
Computer Task Group, Inc. .................. 16,100 274
Concentric Network Corp. *.................. 8,400 334
Harbinger Corp. *........................... 34,600 432
HNC Software, Inc. ......................... 5,600 173
Macromedia, Inc. *.......................... 12,400 437
Mastech Corp. *............................. 13,300 248
Mercury Interactive Corp. *................. 10,400 368
Micros Systems, Inc. ....................... 5,600 190
National Data Corp. ........................ 4,000 171
Pinnacle Systems, Inc. ..................... 12,800 430
Progress Software Corp. *................... 9,900 280
Saga Systems, Inc. *........................ 8,100 103
Sapient Corp. .............................. 6,400 362
SportsLine USA, Inc. *...................... 9,700 348
Syntel, Inc. *.............................. 20,200 182
-------
6,273
Construction - 3.9%
Centex Construction Products, Inc. ......... 8,700 297
Comfort Systems USA, Inc. *................. 10,700 193
Dycom Industries, Inc. ..................... 1,900 106
100
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Construction - Continued
Granite Construction, Inc. ................. 15,100 $ 443
Insituform Technologies, Inc. - Cl. A *..... 15,300 331
Jacobs Engineering Group, Inc. *............ 10,300 391
Lone Star Industries, Inc. ................. 10,300 387
NVR, Inc. *................................. 11,900 621
-------
2,769
Consumer - Miscellaneous - 0.4%
IDEXX Laboratories, Inc. *.................. 6,200 144
Romac International, Inc. .................. 15,400 137
-------
281
Cosmetics and Personal Care Products - 0.8%
AptarGroup, Inc. ........................... 19,200 576
Diversified Operations - 2.3%
Dexter Corp. ............................... 12,300 502
Eastern Enterprises......................... 5,200 207
Gerber Scientific, Inc. .................... 9,900 218
Hawaiian Electric Industries................ 9,600 341
Tredegar Industries, Inc. .................. 8,900 194
Watsco, Inc. ............................... 8,500 139
-------
1,601
Electric Power - 1.1%
Cilcorp, Inc. .............................. 5,200 325
Cleco Corp. ................................ 8,900 270
Minnesota Power, Inc. ...................... 9,400 187
-------
782
Electrical Equipment - 0.2%
SIGCORP, Inc. .............................. 4,100 116
Electronic Products and Services - 5.0%
Aeroflex, Inc. *............................ 12,600 249
Alliant Energy Corp. ....................... 9,690 275
Dallas Semiconductor Corp. ................. 6,700 338
DSP Communications, Inc. *.................. 11,700 338
Jabil Circuit, Inc. *....................... 4,500 203
Lam Research Corp. *........................ 5,700 266
Lattice Semiconductor Corp. *............... 3,800 237
MedQuist, Inc. *............................ 11,100 486
SDL, Inc. *................................. 4,800 245
Seitel, Inc. *.............................. 18,600 301
TranSwitch Corp. *.......................... 11,550 547
-------
3,485
Financial Services - 0.9%
Doral Financial Corp. ...................... 20,800 359
FirstFed Financial Corp. *.................. 13,200 254
-------
613
Food, Beverage and Tobacco - 2.4%
Adolph Coors Co. - Cl. B.................... 6,600 327
Canandaigua Brands, Inc. - Cl. A *.......... 3,100 163
Corn Products International, Inc. .......... 8,700 265
Earthgrains Co. ............................ 7,300 188
Pilgrims Pride Corp. - Cl. B................ 10,000 300
Universal Corp. ............................ 16,500 469
-------
1,712
Health Care Products - 4.6%
Alpharma, Inc. - Cl A....................... 14,300 509
Andrx Corp. *............................... 7,500 578
Biomatrix, Inc. *........................... 10,000 216
Datascope Corp. *........................... 7,000 225
Hanger Orthopedic Group, Inc. .............. 12,400 176
Maxxim Medical, Inc. *...................... 9,900 231
MiniMed, Inc. *............................. 3,800 292
OEC Medical Systems, Inc. *................. 7,800 191
ResMed, Inc. *.............................. 6,400 212
Roberts Pharmaceutical Corp. *.............. 12,900 313
Xomed Surgical Products, Inc. *............. 5,700 278
-------
3,221
Health Care Services - 3.0%
Bindley Western Industries.................. 28,221 651
Capital Senior Living Corp. *............... 24,200 242
Covance, Inc. *............................. 11,200 268
Hooper Holmes, Inc. ........................ 18,200 371
Idec Pharmaceuticals Corp. ................. 5,300 408
Theragenics Corp. .......................... 24,000 167
-------
2,107
Household Appliances / Furnishings - 1.0%
Ethan Allen Interiors, Inc. ................ 5,550 210
Springs Industries, Inc. - Cl. A............ 11,400 497
-------
707
Housing - 0.6%
Pulte Corp. ................................ 9,300 214
TJ International, Inc. ..................... 6,700 208
-------
422
Insurance - 3.4%
American Heritage Life Investment........... 7,800 191
Delphi Financial Group, Inc. - Cl. A *...... 13,138 471
FBL Financial Group - Cl. A................. 15,000 293
Fidelity National Financial, Inc. .......... 9,800 206
LandAmerica Financial Group, Inc. .......... 11,200 322
Orion Capital Corp. ........................ 12,900 463
Presidential Life Corp. .................... 10,000 196
Radian Group, Inc. ......................... 5,700 278
-------
2,420
Leisure and Recreation - 0.7%
Bally Total Fitness Holding Corp. *......... 7,400 210
Extended Stay America, Inc. *............... 9,400 113
Pegasus Systems, Inc. *..................... 3,800 142
-------
465
101
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Machinery - 2.8%
Applied Power, Inc. ........................ 9,000 $ 246
Graco, Inc. ................................ 10,950 321
JLG Industries, Inc. ....................... 15,200 310
Manitowoc Co., Inc. ........................ 7,500 312
NACCO Industries, Inc. - Cl. A.............. 1,900 140
Tecumseh Products Co. - Cl. A............... 5,400 327
Terex Corp. *............................... 10,700 326
-------
1,982
Media - Publishing - 1.3%
Hollinger International, Inc. .............. 26,900 319
McClatchy Newspapers, Inc. ................. 11,800 391
Playboy Enterprises, Inc. - Cl. B *......... 7,300 194
-------
904
Media - TV / Radio - 1.0%
Generale Cable Corp. ....................... 28,200 451
Media General, Inc. - Cl. A................. 4,600 235
-------
686
Metal Product and Fabrication - 0.7%
Intermet Corp. ............................. 15,800 239
Milacron, Inc. ............................. 12,400 229
-------
468
Natural Gas Distribution - 1.0%
Energen Corp. .............................. 14,800 276
NUI Corp. .................................. 18,400 460
-------
736
Oil - Equipment and Services - 2.0%
Dril Quip, Inc. *........................... 6,800 156
Hanover Compressor Co. *.................... 14,400 462
Marine Drilling Companies, Inc. *........... 16,400 224
ONEOK, Inc. ................................ 4,500 143
SEACOR SMIT, Inc. .......................... 8,200 439
-------
1,424
Oil and Natural Gas Exploration and Production - 3.4%
Basin Exploration, Inc. *................... 12,700 255
Evergreen Resources, Inc. *................. 10,400 262
Helmerich & Payne, Inc. .................... 9,500 226
Houston Exploration Co. *................... 10,800 205
Plains Resources, Inc. *.................... 19,100 363
Stone Energy Corp. *........................ 8,600 364
Tesoro Petroleum Corp. *.................... 32,700 521
Valero Energy Corp. ........................ 10,700 229
-------
2,425
Paper and Forest Products - 0.4%
United Stationers, Inc. *................... 14,000 308
Personal and Commercial Lending - 0.3%
Metris Cos., Inc. .......................... 5,000 204
Precious Metals/Gems/Stones - 1.2%
Stillwater Mining Co. *..................... 25,050 819
Real Estate Investment Trust - 5.9%
Bedford Property Investors, Inc. ........... 20,400 365
CBL & Associates Properties, Inc. .......... 6,200 164
Essex Property Trust, Inc. ................. 8,900 315
FelCor Lodging Trust, Inc. ................. 17,136 356
Gables Residential Trust.................... 17,900 432
Kilroy Realty Corp. ........................ 8,200 200
Koger Equity, Inc. *........................ 19,800 365
Mack-Cali Realty Corp. ..................... 6,200 192
Prentiss Properties Trust................... 14,700 345
Shurgard Storage Centers, Inc. ............. 17,600 477
SL Green Realty Corp. ...................... 16,600 339
The Macerich Co. ........................... 13,200 346
Walden Residential Properties, Inc. ........ 13,000 279
-------
4,175
Retail - Department Stores - 3.9%
American Eagle Outfitters, Inc. *........... 7,000 318
AnnTaylor Stores Corp. *.................... 6,900 310
Cato Corp. - Cl. A.......................... 21,400 249
Footstar, Inc. *............................ 13,600 506
Musicland Stores Corp. *.................... 19,900 177
Shopko Stores, Inc. ........................ 15,800 573
United Auto Group, Inc. *................... 6,000 61
Zale Corp. *................................ 14,400 576
-------
2,770
Retail - Food - 2.6%
Brinker International, Inc. *............... 5,800 158
CEC Entertainment, Inc. *................... 9,000 380
Foodmaker, Inc. *........................... 15,800 448
Ruby Tuesday, Inc. ......................... 17,600 335
Sonic Corp. *............................... 7,600 248
The Cheesecake Factory, Inc. *.............. 8,700 265
-------
1,834
Shoe and Apparel Manufacturing - 1.3%
Burlington Industries, Inc. *............... 26,800 243
K-Swiss, Inc. - Cl. A....................... 8,200 381
Kellwood Co. ............................... 10,900 296
-------
920
Steel - 1.9%
AK Steel Holding Corp. ..................... 8,800 198
Oregon Steel Mills, Inc. ................... 18,800 250
Reliance Steel & Aluminum Co. .............. 10,500 410
Texas Industries, Inc. ..................... 12,100 469
-------
1,327
Telecommunication Equipment - 1.9%
PairGain Technologies, Inc. *............... 14,100 162
Polycom, Inc. *............................. 6,500 254
Powertel, Inc. ............................. 8,500 254
102
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Telecommunication Equipment - Continued
Superior Telecom, Inc. ..................... 9,625 $ 241
TriQuint Semiconductor, Inc. *.............. 7,700 437
-------
1,348
Telecommunication Services - 1.2%
Pacific Gateway Exchange, Inc. ............. 4,200 122
Western Wireless Corp. - Cl. A *............ 26,400 713
-------
835
Telephone - 0.4%
ITC DeltaCom, Inc. *........................ 9,100 255
Transportation Services - 1.6%
America West Holdings Corp. - Cl. B *....... 7,900 149
Amtran, Inc. *.............................. 10,400 256
Expeditors International of
Washington, Inc. ......................... 3,300 90
Frontier Airlines, Inc. *................... 13,400 216
SkyWest, Inc. .............................. 6,500 162
Werner Enterprises, Inc. ................... 11,100 230
-------
1,103
-------
TOTAL COMMON STOCK- 99.8% 70,196
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.8%
Investment in joint trading account (Note B)
5.291% due 07/01/99........................ $ 4,056 4,057
-------- -------
TOTAL INVESTMENTS- 105.6% 74,253
Payables, less cash and receivables- (5.6)% (3,937)
-------- -------
NET ASSETS- 100.0% $70,316
-------- -------
* Non-income producing security.
See notes to financial statements.
103
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.5%
Australian Gas & Light Co., Ltd. (UTIG) ... 11,386 $ 69
Brambles Industries, Ltd. (DIOP) ........... 4,000 105
Broken Hill Proprietary Co., Ltd. (DIOP) ... 12,188 141
Colonial, Ltd. (FINL) ..................... 44,278 157
Commonwealth Bank (BANK) ................... 12,248 195
Lend Lease Corp. (FINL) ................... 7,122 98
News Corp., Ltd. (MEDI) ................... 17,042 145
Publishing & Broadcasting, Ltd. (MEDP) ..... 28,000 184
TABCORP Holdings, Ltd. (LEIS) ............. 16,000 108
Telstra Corp., Ltd. (TELS) ................. 44,000 252
Westpac Banking Corp., Ltd. (BANK) ......... 33,694 218
-------
1,672
Belgium - 1.4%
Credit Communal Holding/Dexia (BANK) ....... 559 83
Fortis (B) (INSU) ......................... 9,270 291
KBC Bancassurance Holding NV (BANK) ....... 8,810 522
UCB SA (HEAL) ............................. 1,900 82
-------
978
Canada - 0.2%
Alcan Aluminum, Ltd. (META) ............... 3,240 103
Royal Bank of Canada (BANK) ............... 1,090 48
-------
151
Denmark - 0.3%
Den Danske Bank (BANK) ..................... 780 84
Tele Danmark A/S (TELS) ................... 1,760 86
Unidanmark A/S - Cl. A (BANK) ............. 790 53
-------
223
Finland - 1.0%
Nokia Oyj (TELE) ........................... 7,500 657
France - 10.8%
Alcatel Alsthom (TELE) ..................... 2,214 312
AXA SA (INSU) ............................. 3,834 468
Banque Nationale de Paris (BANK) ........... 1,950 162
Carrefour SA (RETF) ....................... 3,326 489
Compagnie de St. Gobain (CONS) ............. 1,610 256
Credit Commercial de France (BANK) ......... 1,863 201
Dexia France (BANK) ....................... 416 100
Elf Aquitaine (OILX) ....................... 1,900 279
Equant (COMP) ............................. 1,250 115
Group Danone * (FOOD) ..................... 910 235
L'Oreal (HNBA) ............................. 225 152
Lafarge SA (CONS) ......................... 929 88
Legrand SA (ELEQ) ......................... 774 158
Pinault-Printemps-Redoute SA (RETS) ....... 3,460 593
Sanofi-Synthelabo SA * (HEAL) ............. 12,208 518
Schneider SA (MACH) ....................... 6,101 342
Societe Generale de Paris (BANK) ........... 1,328 234
Societe Television Francaise 1 (MEDI) ..... 1,380 321
Sodexho SA (LEIS) ......................... 2,700 465
STMicroelectronics * (ETRN) ............... 3,860 257
Total SA - Cl. B (OILX) ................... 4,971 641
Vivendi (DIOP) ............................. 12,335 999
-------
7,385
Germany - 5.9%
Allianz AG - Reg. (INSU) ................... 1,050 291
Bayer AG (CHEM) ........................... 5,419 226
Bayerische Vereinsbank AG (BANK) ........... 7,987 519
Deutsche Bank AG (BANK) ................... 5,454 333
Deutsche Telekom AG * (TELS) ............... 7,324 307
Dresdner Bank AG (BANK) ................... 7,271 284
Gehe AG (HEAL) ............................. 9,018 415
Hoechst AG (INSU) ......................... 1,670 76
Mannesmann AG (MACH) ....................... 4,570 682
Rhoen-Klinikum AG (HEAL) ................... 990 98
SAP AG (SOFT) ............................. 860 291
Siemens AG (DIOP) ......................... 2,197 169
VEBA AG (DIOP) ............................. 4,815 283
Volkswagen AG (AUTO) ....................... 1,160 74
-------
4,048
Hong Kong - 2.7%
Cheung Kong (Holdings), Ltd. (READ) ....... 19,000 169
China Telecom (Hong Kong), Ltd. (TELS) ..... 74,000 206
CLP Holdings, Ltd. (UTIE) ................. 34,000 165
Dao Heng Bank Group, Ltd. (BANK) ........... 8,000 36
Henderson Land Development Co., Ltd.
(READ) ................................... 31,000 178
Hong Kong Telecommunications, Ltd.
(TELS) ................................... 46,000 119
HSBC Holdings plc (BANK) ................... 6,800 248
Hutchison Whampoa, Ltd. (COMM) ............. 50,000 453
New World Development Co., Ltd. (READ) ..... 36,000 108
Sun Hung Kai Properties, Ltd. (REIT) ....... 16,000 146
-------
1,828
Italy - 4.7%
Assicurazioni Generali (INSU) ............. 7,640 265
Banca Di Roma (BANK) ....................... 41,000 59
Banca Popolare di Brescia (BANK) ........... 8,000 343
Credito Italiano SpA (BANK) ............... 71,393 313
ENI SpA (OILS) ............................. 65,784 393
Istituto Bancario San Paolo di Torino
(BANK) ................................... 18,858 257
Istituto Nazionale delle Assicurazioni
(INSU) ................................... 113,000 262
Italgas SpA (UTIG) ......................... 15,000 63
Mediolanum SpA (INSU) ..................... 20,655 159
Tecnost SpA (COMP) ......................... 40,800 100
Telecom Italia Mobile SpA (TELS) ........... 90,000 537
Telecom Italia SpA * (TELS) ............... 43,444 451
-------
3,202
104
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - 17.9%
Canon, Inc. (COMM) ......................... 23,000 $ 662
Citizen Watch Co., Ltd. (RETS) ............. 7,000 61
Daiichi Pharmaceutical Co., Ltd. (HEAL) ... 12,000 186
Daiwa House Industry Co., Ltd. (HOUS) ..... 15,000 158
DDI Corp. (UTIT) ........................... 29 181
Denso Corp. (ETRN) ......................... 23,000 468
East Japan Railway Co. (TRAN) ............. 32 172
Fanuc, Ltd. (ELEQ) ......................... 3,400 183
Fujitsu, Ltd. (ELEQ) ....................... 12,000 242
Hitachi, Ltd. (ETRN) ....................... 30,000 281
Honda Motor Co. (AUTO) ..................... 1,000 42
Ito-Yokado Co., Ltd. (RETS) ............... 4,000 268
KAO Corp. (HNBA) ........................... 13,000 365
Kokuyo Co. (COMM) ......................... 8,000 129
Komori Corp. (MACH) ....................... 7,000 126
Kuraray Co., Ltd. (APPA) ................... 18,000 217
Kyocera Corp. (ETRN) ....................... 6,000 352
Makita Corp. (CNSU) ....................... 11,000 125
Marui Co., Ltd. (RETS) ..................... 19,000 314
Matsushita Electric Industrial Co. (ETRN) .. 29,000 563
Mitsubishi Corp. (DIOP) ................... 19,000 129
Mitsubishi Heavy Industries, Ltd. (MACH) ... 78,000 317
Mitsui Fudosan (REAL) ..................... 37,000 300
Murata Manufacturing Co., Ltd. (ETRN) ..... 9,000 592
NEC Corp. (COMP) ........................... 43,000 535
Nippon Telegraph & Telephone Corp. (UTIT) .. 54 629
Nomura Securities Co., Ltd. (FUND) ......... 28,000 328
NTT Mobile Communications Network, Inc.
- New * (TELS) ........................... 30 402
Sankyo Co., Ltd. (HEAL) ................... 20,000 504
Sekisui Chemical Co. (CHEM) ............... 26,000 151
Sekisui House, Ltd. (CONS) ................. 15,000 162
Seven-Eleven Japan (RETF) ................. 2,000 196
Shin-Etsu Chemical Co. (CHEM) ............. 9,000 301
Shiseido Co., Ltd. (CHEM) ................. 9,000 135
Sony Corp. (ETRN) ......................... 6,400 690
Sumitomo Corp. (DIOP) ..................... 27,000 198
Sumitomo Electric Industries (TELE) ....... 36,000 410
TDK Corp. (COMP) ........................... 6,000 549
Tokio Marine & Fire Insurance Co. (INSU) ... 7,000 76
Tokyo Electron, Ltd. (ETRN) ............... 2,100 143
Toppan Printing Co. (CNSU) ................. 13,000 145
Toshiba Corp. (ETRN) ....................... 10,000 71
UNY Co., Ltd. (RETS) ....................... 8,000 120
-------
12,178
Luxembourg - 0.1%
Society Europeenne des Satellites (MEDI) ... 336 49
Mexico - 0.6%
Cemex SA de CV - B Shares (CONS) ........... 8,000 40
Fomento Economico Mexicano SA de CV
(FOOD) ................................... 28,000 112
Gruma SA * (FOOD) ......................... 9,266 15
Grupo Industrial Maseca SA de CV - B Shares
(FOOD) ................................... 41,630 25
Grupo Modelo SA de CV - C Shares (FOOD) ... 32,000 91
Kimberly-Clark de Mexico SA de CV (PAPR) ... 23,170 95
-------
378
Netherlands - 8.8%
ABN Amro Holding NV (BANK) ................. 13,956 302
Akzo Nobel NV (CHEM) ....................... 1,610 68
ASM Lithography Holding NV (ETRN) ......... 7,380 427
CSM NV (FOOD) ............................. 5,078 254
Elsevier NV (MEDP) ......................... 25,660 297
Fortis (NL) NV (INSU) ..................... 12,840 396
ING Groep NV (BANK) ....................... 17,030 922
Koninklijke (Royal) Philips Electronics NV
(ETRN) .................................... 5,216 514
Koninklijke Ahold NV (RETF) ............... 11,173 385
Koninklijke Numica NV (ETRN) ............... 3,945 140
KPN NV (UTIT) ............................. 1,730 81
Royal Dutch Petroleum Co. (OILS) ........... 8,550 501
TNT Post Group NV (TRAN) ................... 1,990 47
Unilever NV - CVA (CNSU) ................... 4,313 290
VNU NV (MEDP) ............................. 5,250 210
Wolters Kluwer NV - CVA (MEDP) ............. 29,572 1,177
-------
6,011
New Zealand - 0.2%
Telecom Corp. of New Zealand (TELS) ....... 35,000 150
Norway - 0.8%
Bergesen d.y. ASA - CL. A (TRAN) ........... 250 3
Norsk Hydro ASA (DIOP) ..................... 5,910 223
Orkla ASA (DIOP) ........................... 20,630 321
-------
547
Portugal - 0.5%
Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestora de Participacoes Sociais,
SA (RETF) ................................. 11,123 367
Singapore - 0.5%
Singapore Press Holdings, Ltd. (MEDP) ..... 7,138 121
United Overseas Bank, Ltd. (BANK) ......... 30,000 210
-------
331
South Korea - 0.3%
Samsung Electronics (ETRN) ................. 1,500 164
SK Telecom Co., Ltd. (TELS) ............... 52 70
-------
234
Spain - 3.1%
Banco Bilbao Vizcaya SA (BANK) ............. 6,820 99
Banco Popular Espanol SA (BANK) ........... 1,200 86
105
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Spain - Continued
Banco Santander Central Hispano SA
(BANK) ................................... 29,900 $ 311
Corporacion Bancaria de Espana SA (BANK) ... 6,970 158
Endesa SA (UTIE) ........................... 11,288 241
Gas Natural SDG SA (UTIG) .................. 1,960 142
Iberdrola SA (UTIE) ........................ 16,400 250
Repsol SA (OILX) ........................... 8,061 166
Telefonica SA (UTIT) ....................... 14,178 684
-------
2,137
Sweden - 3.7%
ABB, Ltd. * (ENGI) ......................... 1,956 183
AstraZeneca Group plc (HEAL) ............... 15,071 588
Atlas Copco AB (MACH) ...................... 6,950 187
Electrolux AB - Ser. B (APPL) .............. 19,570 410
Esselte AB - Cl. B (COMM) .................. 910 9
Granges AB (UTIT) .......................... 495 8
Hennes & Mauritz AB - B Shares (RETS) ...... 25,460 630
Meto AG * (CNSU) ........................... 910 4
Nordbanken Holding (BANK) .................. 53,894 316
Sandvik AB (MACH) .......................... 5,320 118
Securitas AB - B Shares (COMM) ............. 5,006 75
-------
2,528
Switzerland - 6.3%
ABB, Ltd. * (ENGI) ......................... 3,242 305
Adecco SA - Reg. (COMM) .................... 855 458
Credit Suisse Group - Reg. (BANK) .......... 1,610 279
Nestle SA (FOOD) ........................... 570 1,027
Novartis AG * (HEAL) ....................... 566 826
Roche Holding AG (HEAL) .................... 61 627
Swisscom AG - Reg. * (UTIT) ................ 261 98
UBS AG - Reg. (BANK) ....................... 2,346 700
-------
4,320
United Kingdom - 18.3%
Abbey National First Capital BV (BANK) ..... 20,000 376
Asda Group plc (RETF) ...................... 65,000 223
BG plc (OILE) .............................. 22,588 138
British Petroleum Co. plc (OILX) ........... 18,000 322
Cable & Wireless plc (TELS) ................ 44,000 561
Cadbury Schweppes plc (FOOD) ............... 75,000 479
Caradon plc (CONS) ......................... 47,500 112
Centrica plc * (UTIG) ...................... 18,900 44
Compass Group plc (FOOD) ................... 51,000 506
David S. Smith Holdings plc (PAPR) ......... 24,000 56
Diageo plc (FOOD) .......................... 84,112 884
Electrocomponents plc (ETRN) ............... 15,000 110
GKN plc (PART) ............................. 6,000 102
Glaxo Wellcome plc (HEAL) .................. 33,000 917
Hays plc (DIOP) ............................ 6,000 63
John Laing plc (HOUS) ...................... 3,000 15
Kingfisher plc (RETS) ...................... 81,000 945
Ladbroke Group plc (LEIS) .................. 28,000 112
National Westminster Bank plc (BANK) ....... 74,000 1,569
Rank Group plc (DIOP) ...................... 15,000 60
Reed International plc (MEDP) .............. 86,000 572
Rio Tinto plc - Reg. (DIOP) ................ 23,000 385
Rolls-Royce plc (AERO) ..................... 17,000 72
Safeway plc (RETF) ......................... 41,000 164
Shell Transport & Trading Co. plc (OILX) ... 150,000 1,125
SmithKline Beecham plc (HEAL) .............. 95,800 1,246
Tesco plc (RETF) ........................... 123,000 319
Tomkins plc (DIOP) ......................... 86,496 375
Unilever plc (CNSU) ........................ 33,928 301
United News & Media plc (MEDP) ............. 32,000 308
-------
12,461
United States - 3.9%
Banco de Galicia y Buenos Aires SA de CV
(BANK) ................................... 1,473 30
Banco Frances del Rio de la Plata SA
(BANK) ................................... 2,277 43
CBT Group Public, Ltd. - ADR * (SOFT) ...... 4,946 82
Cemex SA de CV - ADR * (CONS) .............. 14,030 138
Chilectra SA - ADR (UTIE) .................. 1,724 37
Companhia Energetica de Minas Gerias - ADR
(UTIE) ................................... 3,121 65
Compania Brasileira de Distribuicao Grupo
Pao de Acucar (RETF) ..................... 4,139 77
Gazprom - ADR (OILX) ....................... 1,380 16
Gruma SA - ADR * (FOOD) .................... 3,613 24
Grupo Televisa SA * (MEDI) ................. 2,907 130
Gucci Group NV (APPA) ...................... 2,971 208
Huaneng Power International, Inc. - ADR *
(UTIE) ................................... 8,000 137
Korea Telecom Corp. - ADR * (TELS) ......... 4,000 160
Mahanagar Telephone Nigam Ltd. (TELS) ...... 3,000 26
Telecomunicacoes Brasileiras SA (UTIT) ..... 8,358 754
Telecomunicacoes Brasileiras SA - ADR
(UTIT) ................................... 8,660 1
Telefonica de Argentina SA - ADR (UTIT) .... 3,520 110
Telefonos de Mexico SA - ADR (UTIT) ........ 6,560 530
TV Azteca SA de CV * (MEDI) ................ 2,700 14
Unibanco Uniao De Bancos Brasileiros SA -
GDR (BANK) ............................... 2,000 48
-------
2,630
-------
TOTAL COMMON STOCK- 94.5% 64,465
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) .................... 15,247 116
Sydney Harbour Casino Holdings, Ltd. *
(LEIS) ..................................... 54,000 52
-------
168
106
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
PREFERRED STOCK - CONTINUED
Brazil - 0.6%
Banco Bradesco S.A. (BANK) ................. 6,826,000 $ 35
Banco Itau S.A. (BANK) ..................... 97,000 50
Companhia Energetica de Minas Gerais - CEMIG
(UTIE) ................................... 1,701,000 35
Petroleo Brasiliero S.A. - Petrobras (OILS) 1,012,000 157
Telecomunicacoes de Sao Paulo S.A. - Telesp
(UTIT) ................................... 587,000 70
Telesp Celular S.A. - Cl. B * (TELS) ....... 540,000 27
-------
374
Germany - 0.4%
Fielmann AG - Pref. (RETS) ................. 670 25
Fresenius AG (HEAL) ....................... 290 51
SAP AG - Vorzug (SOFT) ..................... 442 177
-------
253
-------
TOTAL PREFERRED STOCK- 1.2% 795
RIGHTS - 0.0%
South Korea - 0.0%
SK Telecom Co., Ltd. (TELS)
Expires 01/01/80 (Cost $0) ............... 11 6
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.4%
Investment in joint trading account (Note B)
5.291% due 07/01/99 ....................... $ 1,607 1,607
TOTAL INVESTMENTS- 98.1% 66,873
Cash and Receivables, less payables- 1.9% 1,303
----------- -------
NET ASSETS- 100.0% $68,176
=========== =======
* 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
Abbreviation (000's) Investments
Banks ............................. BANK 9,824 15.0%
Health Care Products ............... HEAL 6,057 9.3%
Electronic Products and Services ... ETRN 4,774 7.3%
Food, Beverage and Tobacco ......... FOOD 3,651 5.6%
Diversified Operations ............. DIOP 3,450 5.3%
Telecommunication Services ......... TELS 3,361 5.1%
Telephone ......................... UTIT 3,147 4.8%
Retail - Department Stores ......... RETS 2,957 4.5%
Media - Publishing ................. MEDP 2,870 4.4%
Oil and Natural Gas Exploration
and Production ................... OILX 2,549 3.9%
Insurance ......................... INSU 2,283 3.5%
Retail - Food ..................... RETF 2,219 3.4%
Commercial Services ............... COMM 1,786 2.7%
Machinery ......................... MACH 1,772 2.7%
Telecommunication Equipment ....... TELE 1,378 2.1%
Computer Equipment ................. COMP 1,300 2.0%
Oil ............................... OILS 1,050 1.6%
Electric Power ..................... UTIE 931 1.5%
Chemicals ......................... CHEM 880 1.3%
Consumer - Miscellaneous ........... CNSU 866 1.3%
Construction ....................... CONS 796 1.2%
Media - TV / Radio ................. MEDI 776 1.2%
Leisure and Recreation ............. LEIS 736 1.1%
Electrical Equipment ............... ELEQ 582 0.9%
Computer Software and Services ..... SOFT 549 0.9%
Cosmetics and Personal Care
Products. ......................... HNBA 517 0.8%
Engineering and Construction ....... ENGI 489 0.8%
Real Estate Development ........... READ 455 0.7%
Shoe and Apparel Manufacturing ..... APPA 425 0.7%
Household Appliances /
Furnishings ....................... APPL 410 0.6%
Brokerage and Investment
Management. ....................... FUND 328 0.5%
Natural Gas Distribution ........... UTIG 319 0.5%
Real Estate Operations ............. REAL 300 0.5%
Financial Services ................. FINL 254 0.4%
Transportation Services ........... TRAN 223 0.3%
Housing ........................... HOUS 173 0.3%
Paper and Forest Products ......... PAPR 151 0.2%
Real Estate Investment Trust ....... REIT 146 0.2%
Oil - Equipment and Services ....... OILE 138 0.2%
Automobile ......................... AUTO 117 0.2%
Metals and Mining ................. META 103 0.2%
Auto and Truck Parts ............... PART 102 0.2%
Aerospace and Defense ............. AERO 72 0.1%
------- -----
$65,266 100.0%
======= =====
107
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.4%
Allied Signal, Inc. ...................... 16,000 $ 1,008
B.F. Goodrich Co. ........................ 2,300 98
Boeing Co. ............................... 28,168 1,245
General Dynamics Corp. ................... 3,600 246
Lockheed Martin Corp. .................... 11,300 421
Northrop Grumman Corp. ................... 2,000 132
Raytheon Co. - Cl. B ..................... 10,000 704
United Technologies Corp. ................ 14,100 1,011
----------
4,865
Agricultural Operations - 0.3%
Monsanto Co. ............................. 18,700 737
Pioneer Hi-Bred International, Inc. ...... 6,900 269
----------
1,006
Auto and Truck Parts - 0.8%
AutoZone, Inc. * ......................... 4,500 135
Cooper Tire & Rubber Co. ................. 2,100 50
Cummins Engine Company, Inc. ............. 1,200 68
Dana Corp. ............................... 4,815 222
General Motors Corp. ..................... 19,100 1,261
Genuine Parts Co. ........................ 4,950 173
Goodyear Tire & Rubber Co. ............... 4,500 265
ITT Industries, Inc. ..................... 2,900 110
Johnson Controls, Inc. ................... 2,600 180
PACCAR, Inc. ............................. 2,300 123
Pep Boys - Manny, Moe & Jack ............. 1,648 36
TRW, Inc. ................................ 3,500 192
----------
2,815
Automobile - 0.7%
Delphi Automotive Systems Corp. * ........ 15,970 296
Ford Motor Co. ........................... 35,400 1,998
Navistar International Corp., Inc. ....... 1,800 90
----------
2,384
Banks - 6.7%
AmSouth Bancorporation ................... 5,100 118
Bank of Amreica Corp. ................... 50,968 3,737
Bank of New York Co., Inc. ............... 21,800 800
Bank One Corp. ........................... 34,250 2,040
BankBoston Corp. ......................... 8,600 440
BB&T Corporation ......................... 9,300 341
Chase Manhattan Corp. .................... 24,700 2,140
Comerica, Inc. ........................... 4,400 262
Fifth Third Bancorp ...................... 7,850 522
First Union Corp. ........................ 28,946 1,360
Firstar Corp. ............................ 19,700 552
Fleet Financial Group, Inc. .............. 16,500 732
Golden West Financial Corp. .............. 1,700 167
Huntington Bancshares, Inc. .............. 6,150 215
J.P. Morgan & Co., Inc. .................. 5,100 717
KeyCorp .................................. 13,100 421
Mellon Bank Corp. ........................ 15,300 557
Mercantile Bancorporation ............... 4,400 251
National City Corp. ...................... 9,500 622
Northern Trust Corp. ..................... 3,200 310
PNC Bank Corp. ........................... 8,800 507
Regions Financial Corp. .................. 6,300 242
Republic New York Corp. .................. 3,100 211
SouthTrust Corp. ......................... 4,900 188
State Street Corp. ....................... 4,700 401
Summit Bancorp ........................... 5,100 213
Suntrust Banks, Inc. ..................... 9,300 646
Synovus Financial Corp. .................. 7,350 146
U.S. Bancorp ............................. 21,018 715
Union Planters Corp. ..................... 4,100 183
Wachovia Corp. ........................... 5,800 496
Washington Mutual, Inc. .................. 17,418 616
Wells Fargo & Co. ........................ 47,900 2,048
----------
22,916
Brokerage and Investment Management - 4.7%
Aim Stic Prime Fund ...................... 8,493,871 8,494
Bear Stearns Cos., Inc. .................. 3,340 156
Charles Schwab Corp. ..................... 11,825 1,299
Franklin Resources, Inc. ................. 7,100 289
Lehman Brothers Holdings, Inc. ........... 3,300 205
Merrill Lynch & Co., Inc. ................ 10,900 871
Morgan Stanley, Dean Witter, Discover & Co. 16,750 1,717
Paine Webber Group, Inc. ................. 4,200 196
Prime Obligation Fund .................... 2,642,699 2,643
----------
15,870
Business Services - 0.4%
Automatic Data Processing, Inc. .......... 17,800 783
Dun & Bradstreet Corp. ................... 5,100 181
H & R Block, Inc. ........................ 2,900 145
Harris Corp. ............................. 2,100 82
IKON Office Solutions, Inc. .............. 4,900 74
----------
1,265
Chemicals - 1.4%
Air Products & Chemicals, Inc. ........... 6,900 278
Dow Chemical Co. ......................... 6,500 825
E.I. du Pont de Nemours & Co. ............ 32,800 2,241
Eastman Chemical Co. ..................... 2,400 124
Engelhard Corp. .......................... 3,800 86
Great Lakes Chemical Corp. ............... 1,900 87
Hercules, Inc. ........................... 2,800 110
Nalco Chemical Co. ....................... 2,000 104
Praxair, Inc. ............................ 4,600 225
Rohm & Haas Co. .......................... 6,228 267
Sigma-Aldrich Corp. ...................... 3,300 114
Union Carbide Corp. ...................... 3,900 190
W.R. Grace & Co. ......................... 1,700 31
----------
4,682
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Commercial Services - 0.5%
Cendant Corp. * .......................... 23,406 $ 480
Deluxe Corp. ............................. 2,100 82
Ecolab, Inc. ............................. 3,600 157
Equifax, Inc. ............................ 4,300 153
Interpublic Group Cos., Inc. ............. 3,950 342
Omnicom Group, Inc. ...................... 5,200 416
R.R. Donnelley & Sons Co. ................ 4,100 152
--------
1,782
Computer Equipment - 6.3%
3Com Corp. * ............................. 10,300 275
Apple Computer, Inc. * ................... 4,900 227
Compaq Computer Corp. .................... 49,111 1,163
Data General Corp. * ..................... 1,300 19
Dell Computer Corp. * .................... 73,700 2,727
Gateway, Inc. * .......................... 4,400 260
Hewlett-Packard Co. ...................... 29,700 2,985
Intel Corp. .............................. 96,800 5,760
International Business Machines Corp. .... 52,900 6,837
Network Appliance, Inc. * ................ 2,100 117
Xerox Corp. .............................. 19,100 1,128
--------
21,498
Computer Software and Services - 7.9%
Adobe Systems, Inc. ...................... 1,800 148
America Online, Inc. * ................... 31,500 3,481
Autodesk, Inc. ........................... 1,500 44
BMC Software, Inc. * ..................... 6,800 367
Cabletron Systems, Inc. * ................ 5,600 73
Ceridian Corp. * ......................... 4,100 134
Computer Associates International, Inc. .. 15,425 848
Computer Sciences Corp. * ................ 4,500 311
Compuware Corp. * ........................ 10,500 334
Electronic Data Systems Corp. ............ 14,400 815
EMC Corp. * .............................. 29,300 1,612
First Data Corp. ......................... 13,000 636
IMS Health, Inc. ......................... 9,100 284
Microsoft Corp. .......................... 148,700 13,411
Novell, Inc. * ........................... 9,700 257
Oracle Corp. * ........................... 41,825 1,553
Parametric Technology Co. * .............. 8,200 114
Peoplesoft, Inc. ......................... 7,200 124
Seagate Technology, Inc. * ............... 6,900 177
Shared Medical Systems Corp. ............. 800 52
Silicon Graphics, Inc. * ................. 5,000 82
Sun Microsystems, Inc. * ................. 22,400 1,543
Unisys Corp. * ........................... 8,100 315
--------
26,715
Construction - 0.0%
Armstrong World Industries, Inc. ......... 1,300 75
Foster Wheeler Corp. ..................... 600 9
--------
84
Consumer - Miscellaneous - 1.1%
American Greetings Corp. - Cl. A ......... 1,900 $ 57
Avery Dennison Corp. ..................... 3,300 199
Black & Decker Corp. ..................... 2,500 158
Briggs & Stratton Corp. .................. 800 46
Clorox Co. ............................... 3,500 374
Fortune Brands, Inc. ..................... 5,100 211
Honeywell, Inc. .......................... 3,700 429
Jostens, Inc. ............................ 1,200 25
Newell Rubbermaid, Inc. .................. 8,216 382
Parker-Hannifin Corp. .................... 3,150 144
Service Corp. International .............. 7,500 145
Sherwin-Williams Co. ..................... 5,000 139
Snap-On, Inc. ............................ 2,000 72
Stanley Works ............................ 2,300 74
Tupperware Corp. ......................... 1,800 46
Unilever NV - NY Shares ................. 16,682 1,164
--------
3,665
Containers - 0.1%
Bemis Company, Inc. ..................... 1,700 67
Crown Cork & Seal Co., Inc. .............. 3,300 94
Owens-Illinois, Inc. * ................... 4,700 154
Sealed Air Corp. * ....................... 2,389 155
--------
470
Cosmetics and Personal Care Products - 1.8%
Alberto-Culver Co. ....................... 1,300 35
Avon Products, Inc. ...................... 7,600 422
Colgate-Palmolive Co. .................... 8,400 829
Gillette Co. ............................. 32,200 1,320
International Flavors & Fragrances, Inc... 3,100 138
Procter & Gamble Co. ..................... 38,600 3,445
--------
6,189
Diversified Operations - 5.1%
Cooper Industries, Inc. .................. 2,800 145
Corning, Inc. ............................ 7,100 498
Crane Co. ................................ 1,750 55
Danaher Corp. ............................ 3,900 227
Eastern Enterprises ..................... 500 20
Eaton Corp. ............................. 2,000 184
General Electric Co. ..................... 95,300 10,769
Illinois Tool Works, Inc. ............... 7,200 590
Minnesota Mining & Manufacturing Co. ..... 11,700 1,017
National Service Industries, Inc. ........ 1,300 47
Pall Corp. ............................... 3,700 82
PPG Industries, Inc. ..................... 5,300 313
Raychem Corp. ............................ 2,500 92
Seagram Co., Ltd. ........................ 12,700 640
Tenneco, Inc. ............................ 5,100 122
Textron, Inc. ............................ 4,600 379
Tyco International, Ltd. ................. 23,798 2,255
--------
17,435
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - 1.9%
AES Corp. * .............................. 5,500 $ 320
Ameren Corp. ............................. 4,000 153
American Electric Power Co. .............. 5,500 207
Carolina Power & Light Co. ............... 4,400 188
Central & South West Corp. ............... 5,800 135
Cinergy Corp. ............................ 4,400 141
CMS Energy Corp. ......................... 3,500 146
Consolidated Edison, Inc. ................ 6,800 308
Constellation Energy Group................ 4,400 130
Dominion Resources, Inc. ................. 5,700 247
DTE Energy Co. ........................... 4,300 172
Duke Energy Co. .......................... 10,444 568
Edison International...................... 10,100 270
Entergy Corp. ............................ 7,000 219
Firstenergy Corp. ........................ 6,800 211
Florida Progress Corp. ................... 2,800 116
FPL Group, Inc. .......................... 5,200 284
GPU, Inc. ................................ 3,700 156
New Century Energies, Inc. ............... 3,500 136
Niagara Mohawk Holdings, Inc. ............ 4,900 79
Northern States Power Co. ................ 4,700 114
PacifiCorp................................ 8,700 160
Peco Energy Co. .......................... 6,400 268
PG & E Corp. ............................. 11,200 364
PP & L Resources, Inc. ................... 4,500 138
Public Services Enterprise Group, Inc. ... 6,300 257
Reliant Energy, Inc. ..................... 8,324 230
Southern Co. ............................. 20,500 543
Texas Utilities Co. ...................... 8,312 343
--------
6,603
Electrical Equipment - 0.4%
Best Buy Co., Inc. ....................... 6,100 412
EG & G, Inc. ............................. 1,000 36
Emerson Electric Co. ..................... 12,600 792
Unicom Corp. ............................. 6,300 243
--------
1,483
Electronic Products and Services - 3.8%
Advanced Micro Devices, Inc. * ........... 4,200 76
Applied Materials, Inc. * ................ 10,800 798
Ball Corp. ............................... 800 34
Cisco Systems, Inc. * .................... 93,050 6,002
KLA-Tencor Corp. *........................ 2,600 169
LSI Logic Corp. * ........................ 4,200 194
Micron Technology, Inc. * ................ 7,000 282
Millipore Corp. .......................... 1,200 49
Motorola, Inc. ........................... 17,700 1,677
National Semiconductor Corp. * ........... 5,200 131
PE Corp-BE Biosystems Group .............. 1,400 161
Pitney Bowes, Inc. ....................... 8,100 520
Polaroid Corp. ........................... 1,400 39
Rockwell International Corp. *............ 5,500 334
Solectron Corp. * ........................ 7,300 487
Tektronix, Inc. .......................... 1,500 45
Texas Instruments, Inc. .................. 11,500 1,667
Thomas & Betts Corp. ..................... 1,500 71
--------
12,736
Engineering and Construction - 0.0%
Fluor Corp. .............................. 2,400 97
Financial Services - 2.4%
American Express Co. ..................... 13,200 1,718
Associates First Capital Corp. - Cl. A * . 21,006 931
Capital One Financial Corp. .............. 5,700 317
Citigroup, Inc. .......................... 98,328 4,671
Paychex, Inc. ............................ 7,200 229
Providian Financial Corp. * .............. 4,050 379
--------
8,245
Food, Beverage and Tobacco - 4.7%
Adolph Coors Co. - Cl. B.................. 900 45
Anheuser-Busch Cos., Inc. ................ 13,900 986
Archer-Daniels-Midland Co. ............... 17,018 263
Bestfoods................................. 8,200 406
Brown-Forman Corp. ....................... 2,000 130
Campbell Soup Co. ........................ 12,800 594
Coca-Cola Co. ............................ 72,000 4,500
Coca-Cola Enterprises, Inc. .............. 12,400 369
ConAgra, Inc. ............................ 14,600 389
General Mills, Inc. ...................... 4,500 362
H.J. Heinz Co. ........................... 10,300 516
Hershey Foods Corp. ...................... 4,100 243
Kellogg Co. .............................. 11,700 386
Nabisco Holdings Corp. ................... 9,300 182
PepsiCo, Inc. ............................ 43,300 1,675
Philip Morris Cos., Inc. ................. 70,500 2,833
Quaker Oats Co. .......................... 3,900 259
Ralston-Ralston Purina Group.............. 9,400 286
Sara Lee Corp. ........................... 26,100 592
SUPERVALU, Inc. .......................... 3,100 80
Sysco Corp. .............................. 10,000 298
UST, Inc. ................................ 5,200 152
Wm. Wrigley Jr. Co. ...................... 3,300 297
--------
15,843
Health Care Products - 10.0%
Abbott Laboratories ...................... 44,200 2,011
Allergan, Inc. ........................... 2,000 222
ALZA Corp. * ............................. 3,000 153
American Home Products Corp. * ........... 38,400 2,208
Amgen, Inc. * ............................ 14,800 901
Bausch & Lomb, Inc. ...................... 1,600 122
Baxter International, Inc. ............... 8,500 515
Becton, Dickinson & Co. .................. 7,100 213
Biomet, Inc. ............................. 3,300 131
Boston Scientific Corp. * ................ 11,500 505
Bristol-Myers Squibb Co. ................. 57,700 4,064
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Health Care Products - Continued
C.R. Bard, Inc. . . . . . . . . . . . . . 1,700 $ 81
Cardinal Health, Inc. . . . . . . . . . . 8,000 513
Eli Lilly & Co. . . . . . . . . . . . . . 32,200 2,306
Guidant Corp. * . . . . . . . . . . . . . 8,900 458
Johnson & Johnson . . . . . . . . . . . . 39,300 3,852
Mallinckrodt, Inc. . . . . . . . . . . . . 2,100 76
Medtronic, Inc. . . . . . . . . . . . . . 16,900 1,316
Merck & Co., Inc. . . . . . . . . . . . . 68,900 5,099
Pfizer, Inc. . . . . . . . . . . . . . . . 37,800 4,149
Pharmacia & Upjohn, Inc. . . . . . . . . . 14,600 830
Schering-Plough Corp. . . . . . . . . . . 42,600 2,258
St. Jude Medical, Inc. * . . . . . . . . . 2,500 89
Warner-Lambert Co. . . . . . . . . . . . . 24,600 1,707
Watson Pharmaceuticals, Inc. * . . . . . . 2,600 91
--------
33,870
Health Care Services - 0.5%
Columbia/HCA Healthcare Corp. . . . . . . 16,450 375
HCR Manor Care, Inc. * . . . . . . . . . . 3,400 82
HEALTHSOUTH Corp. * . . . . . . . . . . . 11,700 175
Humana, Inc. * . . . . . . . . . . . . . . 5,700 74
LifePoint Hospitals, Inc. * . . . . . . . 1 -
McKesson HBOC, Inc. . . . . . . . . . . . 8,133 261
Tenet Healthcare Corp. * . . . . . . . . . 9,100 169
Triad Hospitals, Inc. * . . . . . . . . . 1 -
United Healthcare Corp. . . . . . . . . . 5,300 332
Wellpoint Health Networks, Inc. * . . . . 1,900 161
--------
1,629
Household Appliances / Furnishings - 0.1%
Maytag Corp. . . . . . . . . . . . . . . . 2,500 174
Springs Industries, Inc. - Cl. A . . . . . 300 13
Whirlpool Corp. . . . . . . . . . . . . . 2,100 156
--------
343
Housing - 0.1%
Centex Corp. . . . . . . . . . . . . . . . 1,700 64
Fleetwood Enterprises . . . . . . . . . . 700 19
Kaufman & Broad Home Corp. . . . . . . . . 1,300 32
Masco Corp. . . . . . . . . . . . . . . . 9,800 283
Owens Corning . . . . . . . . . . . . . . 1,700 58
Pulte Corp. . . . . . . . . . . . . . . . 900 21
--------
477
Insurance - 3.4%
Aetna, Inc. . . . . . . . . . . . . . . . 4,100 367
AFLAC, Inc. . . . . . . . . . . . . . . . 7,800 373
Allstate Corp. . . . . . . . . . . . . . . 24,000 861
American General Corp. . . . . . . . . . . 7,321 552
American International Group, Inc. . . . . 36,189 4,236
Aon Corp. . . . . . . . . . . . . . . . . 7,200 297
Chubb Corp. . . . . . . . . . . . . . . . 4,700 327
Cigna Corp. . . . . . . . . . . . . . . . 6,000 534
Cincinnati Financial Corp. . . . . . . . . 4,600 173
Conseco, Inc. . . . . . . . . . . . . . . 8,991 274
Hartford Financial Services Group, Inc. . 6,800 397
Jefferson-Pilot Corp. . . . . . . . . . . 3,150 208
Lincoln National Corp. . . . . . . . . . . 5,800 303
Loews Corp. . . . . . . . . . . . . . . . 3,200 253
Marsh & McLennan Cos., Inc. . . . . . . . 7,600 574
MBIA, Inc. . . . . . . . . . . . . . . . . 2,900 188
MGIC Investment Corp. . . . . . . . . . . 3,200 156
Progressive Corp. . . . . . . . . . . . . 2,100 304
Provident Cos., Inc. . . . . . . . . . . . 4,000 160
Safeco Corp. . . . . . . . . . . . . . . . 3,800 168
St. Paul Cos., Inc. . . . . . . . . . . . 6,914 220
Torchmark, Inc. . . . . . . . . . . . . . 4,200 143
Transamerica Corp. . . . . . . . . . . . . 3,500 262
UNUM Corp. . . . . . . . . . . . . . . . . 4,000 219
--------
11,549
Leisure and Recreation - 0.8%
Brunswick Corp. . . . . . . . . . . . . . 2,400 67
Carnival Corp. . . . . . . . . . . . . . . 17,700 858
Eastman Kodak Co. . . . . . . . . . . . . 9,500 644
Harrah's Entertainment, Inc. * . . . . . . 3,300 73
Hasbro, Inc. . . . . . . . . . . . . . . . 5,625 157
Hilton Hotels Corp. . . . . . . . . . . . 7,900 112
Marriott International, Inc. - Cl. A . . . 7,200 269
Mattel, Inc. . . . . . . . . . . . . . . . 12,200 322
Mirage Resorts, Inc. * . . . . . . . . . . 5,300 89
--------
2,591
Machinery - 0.6%
Case Corp . . . . . . . . . . . . . . . . 2,200 106
Caterpillar, Inc. . . . . . . . . . . . . 10,300 618
Deere & Co. . . . . . . . . . . . . . . . 6,700 265
Dover Corp. . . . . . . . . . . . . . . . 6,300 221
FMC Corp. * . . . . . . . . . . . . . . . 1,000 68
Ingersoll-Rand Co. . . . . . . . . . . . . 5,000 323
McDermott International, Inc. . . . . . . 1,400 40
NACCO Industries, Inc. - Cl. A . . . . . . 200 15
Thermo Electron Corp. * . . . . . . . . . 4,100 82
W.W. Grainger, Inc. . . . . . . . . . . . 2,600 140
--------
1,878
Media - Publishing - 0.5%
Dow Jones & Co., Inc. . . . . . . . . . . 2,800 149
Gannett Co., Inc. . . . . . . . . . . . . 8,100 578
Knight-Ridder, Inc. . . . . . . . . . . . 2,300 126
Meredith Corp. . . . . . . . . . . . . . . 1,700 59
New York Times Co. . . . . . . . . . . . . 5,500 202
Times Mirror Co. - Cl. A . . . . . . . . . 2,000 119
Tribune Co. . . . . . . . . . . . . . . . 3,400 296
--------
1,529
Media - TV / Radio - 2.4%
CBS Corp. * . . . . . . . . . . . . . . . 20,700 899
4
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV / Radio - Continued
Clear Channel Communications, Inc. * ..... 9,500 $ 655
Comcast Corp. - Cl. A .................... 21,800 838
King World Productions, Inc. * ........... 2,200 77
McGraw-Hill Cos., Inc. ................... 5,600 302
The Walt Disney Co. ...................... 59,600 1,836
Time Warner, Inc. ........................ 34,600 2,543
Viacom, Inc. - Cl. B * ................... 20,000 880
--------
8,030
Metal Product and Fabrication - 0.1%
Milacron, Inc. ........................... 700 13
Reynolds Metals Co. ...................... 1,900 112
Timken Co. ............................... 1,600 31
Worthington Industries, Inc. ............. 3,000 50
--------
206
Metals and Mining - 0.3%
Alcan Aluminium, Ltd. .................... 6,300 201
Alcoa, Inc. .............................. 10,600 656
Asarco, Inc. ............................. 700 13
Cyprus Amax Minerals Co. ................. 2,200 34
Inco, Ltd. ............................... 6,200 112
Phelps Dodge Corp. ....................... 1,700 105
--------
1,121
Natural Gas Distribution - 0.6%
Columbia Energy Group, Inc. .............. 2,500 157
Consolidated Natural Gas Co. ............. 2,800 170
Enron Corp. .............................. 10,200 834
NICOR, Inc. .............................. 1,600 61
Peoples Energy Corp. ..................... 800 30
Sempra Energy............................. 7,055 159
Williams Cos., Inc. ...................... 12,600 526
--------
1,937
Oil - 1.3%
Atlantic Richfield Co. (ARCO) ............ 9,500 794
Royal Dutch Petroleum Co. - NY Shares..... 62,300 3,753
--------
4,547
Oil - Equipment and Services - 0.6%
Baker Hughes, Inc. ....................... 9,400 315
Halliburton Co. .......................... 12,900 584
ONEOK, Inc. .............................. 600 19
Schlumberger, Ltd. ....................... 16,100 1,025
--------
1,943
Oil and Natural Gas Exploration and Production - 3.9%
Amerada Hess Corp. ....................... 2,600 155
Anadarko Petroleum Corp. ................. 3,800 140
Apache Corp. ............................. 3,000 117
Ashland, Inc. ............................ 2,300 92
Burlington Resources, Inc. ............... 5,210 225
Chevron Corp. ............................ 19,200 1,828
Coastal Corp. ............................ 6,000 240
Exxon Corp. ............................. 70,600 5,445
Helmerich & Payne, Inc. .................. 1,200 29
Kerr-McGee Corp. ......................... 2,570 129
Mobil Corp. .............................. 22,900 2,267
Occidental Petroleum Corp. ............... 10,300 218
Phillips Petroleum Co. ................... 7,400 372
Rowan Cos., Inc. * ....................... 2,100 39
Sonat, Inc. .............................. 3,300 109
Sunoco, Inc. ............................. 2,400 72
Texaco, Inc. ............................. 15,600 975
Union Pacific Resources Group, Inc. ...... 7,508 123
Unocal Corp. ............................. 6,900 273
USX-Marathon Group........................ 8,700 283
--------
13,131
Paper and Forest Products - 0.9%
Boise Cascade Corp. ...................... 1,900 81
Champion International Corp. ............. 2,800 134
Fort James Corp. ......................... 6,400 242
Georgia-Pacific Corp. .................... 5,200 246
International Paper Co. .................. 11,721 592
Kimberly-Clark Corp. ..................... 15,900 906
Louisiana-Pacific Corp. .................. 3,100 74
Mead Corp. ............................... 2,800 117
Potlatch Corp. ........................... 900 40
Temple-Inland, Inc. ...................... 1,500 102
Westvaco Corp. ........................... 3,100 90
Weyerhaeuser Co. ......................... 5,900 406
Willamette Industries, Inc. .............. 3,100 143
--------
3,173
Personal and Commercial Lending - 0.5%
Countrywide Credit Industries, Inc. ...... 3,100 132
Household International, Inc. ............ 14,166 671
MBNA Corp. ............................... 22,975 704
SLM Holding Corp. ........................ 4,800 220
--------
1,727
Pollution Control - 0.3%
Browning-Ferris Industries, Inc. ......... 4,700 202
Waste Management, Inc. ................... 17,557 944
--------
1,146
Precious Metals/Gems/Stones - 0.2%
Barrick Gold Corp. ....................... 11,300 219
Battle Mountain Gold Co. ................. 5,500 13
Freeport-McMoRan Copper & Gold............ 5,100 92
Homestake Mining Co. ..................... 8,000 66
Newmont Mining Corp. ..................... 5,001 99
Placer Dome, Inc. ........................ 10,000 118
--------
607
Retail - Department Stores - 5.0%
Circuit City Stores, Inc. ................ 3,000 279
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Consolidated Stores Corp. * .............. 3,300 $ 89
Costco Cos., Inc. * ...................... 6,300 504
Dayton Hudson Corp. ...................... 12,700 825
Dillard's, Inc. .......................... 2,900 102
Dollar General Corp. ..................... 6,437 187
Federated Department Stores, Inc. * ...... 6,000 318
Gap, Inc. ................................ 24,975 1,258
Harcourt General, Inc. ................... 2,000 103
Home Depot, Inc. ......................... 43,000 2,771
J.C. Penney Co., Inc. .................... 7,500 364
Kmart Corp. * ............................ 14,300 235
Kohl's Corp. ............................. 4,700 363
Limited, Inc. ............................ 6,226 282
Lowe's Cos., Inc. ........................ 10,700 606
May Department Stores Co. ................ 10,150 415
Nordstrom, Inc. .......................... 4,200 141
Office Depot, Inc. ....................... 11,200 247
Sears, Roebuck & Co. ..................... 11,300 504
Staples, Inc. * .......................... 13,450 416
Tandy Corp. .............................. 5,600 274
TJX Cos., Inc. ........................... 9,100 303
Toys "R" Us, Inc. * ...................... 7,200 149
Wal-Mart Stores, Inc. .................... 129,800 6,263
--------
16,998
Retail - Drug Stores - 0.5%
CVS Corp. ................................ 11,300 573
Longs Drug Stores, Inc. .................. 900 31
Rite Aid Corp. ........................... 7,500 185
Walgreen Co. ............................. 28,700 843
--------
1,632
Retail - Food - 1.3%
Albertson's, Inc. ........................ 12,177 628
Darden Restaurants, Inc. ................. 3,700 81
McDonald's Corp. ......................... 39,300 1,624
Safeway, Inc. * .......................... 14,400 713
The Great Atlantic & Pacific Tea Co., Inc. 1,000 34
The Kroger Co. * ......................... 24,000 670
Tricon Global Restaurants, Inc. * ........ 4,350 235
Wendy's International, Inc. .............. 3,700 105
Winn-Dixie Stores, Inc. .................. 4,100 151
--------
4,241
Shoe and Apparel Manufacturing - 0.2%
Fruit of the Loom, Inc. - Cl. A * ........ 1,500 15
Liz Claiborne, Inc. ...................... 2,000 73
Nike, Inc. ............................... 8,100 513
Reebok International, Ltd. ............... 1,900 35
Russell Corp. ............................ 800 15
V.F. Corp. ............................... 3,500 150
--------
801
Steel - 0.1%
Allegheny Teldyne, Inc. .................. 5,700 129
Bethlehem Steel Corp. * .................. 3,200 25
Nucor Corp. .............................. 2,500 118
USX-US Steel Group, Inc. ................. 2,400 65
--------
337
Telecommunication Equipment - 2.6%
Andrew Corp. * ........................... 2,850 54
General Instrument Corp. * ............... 5,000 213
Lucent Technologies, Inc. ................ 88,625 5,977
Nortel Networks Corp. .................... 19,300 1,675
Scientific-Atlanta, Inc. ................. 2,400 86
Tellabs, Inc. * .......................... 11,200 757
--------
8,762
Telecommunication Services - 0.8%
Frontier Corp. ........................... 4,900 289
MediaOne Group, Inc. ..................... 17,600 1,309
Nextel Communications, Inc. * ............ 8,600 431
Sprint PCS * ............................. 12,950 740
--------
2,769
Telephone - 7.7%
Alltel Corp. ............................. 8,300 593
Ameritech Corp. .......................... 31,800 2,337
AT&T Corp. ............................... 92,806 5,180
Bell Atlantic Corp. ...................... 45,336 2,964
BellSouth Corp. .......................... 54,900 2,573
CenturyTel, Inc. ......................... 4,100 163
GTE Corp. ................................ 28,400 2,151
MCI WorldCom, Inc. ....................... 54,285 4,672
SBC Communications, Inc. ................. 56,948 3,303
Sprint Corp. ............................. 25,800 1,363
U.S. West, Inc. .......................... 14,597 858
--------
26,157
Transportation Services - 0.9%
AMR Corp. * .............................. 4,400 300
Burlington Northern Santa Fe.............. 13,500 419
CSX Corp. ................................ 6,100 276
Delta Air Lines, Inc. .................... 4,100 236
FDX Corp. ................................ 8,500 461
Kansas City Southern Industries, Inc. .... 3,100 198
Laidlaw, Inc. ............................ 10,500 78
Norfolk Southern Corp. ................... 10,800 325
Ryder System, Inc. ....................... 2,000 52
Southwest Airlines Co. ................... 9,600 299
U.S. Airways Group, Inc. * ............... 2,600 113
Union Pacific Corp. ...................... 7,200 420
--------
3,177
U.S. Government Agencies - 0.9%
Federal Home Loan Mortgage Corp. ......... 20,200 1,172
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Name of Issuer Shares Market
Value
(000's)
COMMON STOCK - Continued
U.S. Government Agencies - Continued
Federal National Mortgage Assoc. ......... 29,900 $ 2,044
--------
3,216
--------
TOTAL COMMON STOCK- 99.5% 338,172
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.2%
U.S. Governmental - 0.2%
U.S. Treasury Bills
4.53% due 09/02/99 # ....................... $ 610 604
4.57% due 09/16/99 # ....................... 50 50
4.64% due 09/16/99 # ....................... 140 139
--------
793
--------
TOTAL INVESTMENTS- 99.7% 338,965
Cash and Receivables, less payables- 0.3% 949
----------- --------
NET ASSETS- 100.0% $339,914
=========== ========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $793 have
been segregated to collateralize financial futures contracts.
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 1.0%
K & F Industries, Inc. - Sr. Sub. Notes
9.25% due 10/15/07............................. $ 175 $ 173
Auto and Truck Parts - 2.9%
Accuride Corp. - Sr. Sub. Notes Ser. B
9.25% due 02/01/08............................. 125 122
Delco Remy International, Inc.
8.625% due 12/15/07............................ 75 73
Hayes Lemmerz International, Inc.
9.125% due 07/15/07............................ 100 101
LDM Technologies, Inc.
10.75% due 01/15/07............................ 120 119
Numatics, Inc. - Ser. B
9.625% due 04/01/08............................ 100 89
-------
504
Automobile - 0.2%
Dura Operating Corp - Sr. Sub. Notes 144A (a)
9.0% due 05/01/09.............................. 35 34
Banks - 0.6%
Western Financial Bank
8.875% due 08/01/07............................ 125 103
Chemicals - 5.7%
Acetex Corp. - Sr. Notes
9.75% due 10/01/03............................. 125 115
Lyondell Chemical Co. - 144A (a)
9.875% due 05/01/07............................ 195 200
Lyondell Chemical Co. - Debs.
9.8% due 02/01/20.............................. 110 106
PCI Chemicals Canada, Inc.
9.25% due 10/15/07............................. 100 82
Sovereign Speciality Chemicals
9.5% due 08/01/07.............................. 180 180
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06............................ 150 134
ZSC Specialty Chemical plc - Sr. Notes
144A(a)
11.0% due 07/01/09............................. 175 176
-------
993
Coal - 1.7%
P&L Coal Holdings Corp.
9.625% due 05/15/08............................ 300 298
Commercial Services - 2.1%
Iron Mountain, Inc.
8.75% due 09/30/09............................. 150 147
Pierce Leahy Corp. - Sr. Sub. Notes
9.125% due 07/15/07............................ 100 100
Sullivan Graphics, Inc.
12.75% due 08/01/05............................ 125 129
-------
376
Computer Software and Services - 4.6%
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07............................ 150 156
Exodus Communications, Inc. - Sr. Notes
11.25% due 07/01/08............................ 150 158
PSINet, Inc. - Sr. Notes
10.0% due 02/15/05............................. 200 199
11.5% due 11/01/08............................. 75 79
Verio, Inc. - Sr Notes
11.25% due 12/01/08............................ 50 52
Verio, Inc. - Sr. Notes
10.375% due 04/01/05........................... 150 153
-------
797
Construction - 0.6%
Nortek, Inc.
9.125% due 09/01/07............................ 100 99
Consumer - Miscellaneous - 3.4%
Lin Holdings Corp. - Sr. Disc. Notes
0.0% due 03/01/08.............................. 475 315
Royster-Clark, Inc. - 1st Mtge. 144A (a)
10.25% due 04/01/09............................ 90 89
True Temper Sports, Inc. - Sr. Sub. Notes
144A (a)
10.875% due 12/01/08........................... 230 195
-------
599
Containers - 1.0%
Gaylord Container Corp. - Sr. Notes Ser. B
9.375% due 06/15/07............................ 100 93
Packaging Corp. of America - Sr. Sub. Notes
144A (a)
9.625% due 04/01/09............................ 75 76
-------
169
Cosmetics and Personal Care Products - 0.7%
Revlon Consumer Products, Inc. - Sr. Sub. Notes
8.625% due 02/01/08............................ 50 47
Revlon Worldwide - Sr. Disc. Notes
0.0% due 03/15/01.............................. 100 67
-------
114
Diversified Operations - 3.4%
Charter Communications Holdings, LLC - Sr.
Notes 144A (a)
8.625% due 04/01/09............................ 175 167
Fisher Scientific International, Inc. - Sr.
Sub. Notes
9.0% due 02/01/08.............................. 125 119
Pacifica Papers, Inc. - Sr. Notes 144A (a)
10.0% due 03/15/09............................. 75 76
RBF Finance Co. - 144A (a)
11.375% due 03/15/09........................... 120 125
Simmons Co. - Sr. Sub. Notes 144A (a)
10.25% due 03/15/09............................ 35 36
115
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Diversified Operations - Continued
Werner Holdings Co., Inc.
10.0% due 11/15/07............................. $ 35 $ 34
Westinghouse Air Brake Co. - Sr, Notes
144A(a)
9.375% due 06/15/05............................ 45 46
-------
603
Electrical Equipment - 0.6%
Wesco Distribution, Inc. - Ser. B
9.125% due 06/01/08............................ 100 97
Electronic Products and Services - 2.1%
Advanced Micro Devices
11.0% due 08/01/03............................. 170 172
Fairchild Semiconductor Corp. - Sr. Sub. Notes
10.125% due 03/15/07........................... 175 170
Fairchild Semiconductor Corp. - Sr. Sub. Notes
144A (a)
10.375% due 10/01/07............................ 35 34
-------
376
Financial Services - 1.4%
AMSC Acquisition Co., Inc. - Ser. B
12.25% due 03/31/08............................ 50 38
Olympic Financial, Ltd. - Sr. Notes
11.5% due 03/15/07............................. 125 105
Tembec Finance Corp. - Sr. Notes
9.875% due 09/30/05............................ 95 100
-------
243
Food, Beverage and Tobacco - 3.5%
Aurora Foods, Inc. - Sr. Sub. Notes
9.875% due 02/15/07............................ 50 52
B&G Foods, Inc.
9.625% due 08/01/07............................ 125 119
Chiquita Brands International, Inc. - Sr. Notes
10.0% due 06/15/09............................. 100 100
Del Monte Foods Co. - Sr. Disc. Notes Ser. B
12.5% due 12/15/07............................. 137 101
Nash-Finch Co. - Ser. B
8.5% due 05/01/08.............................. 100 90
Vlasic Foods International, Inc. - Sr. Sub.
Notes 144A (a)
10.25% due 07/01/09............................ 150 148
-------
610
Foreign - 0.6%
Satelites Mexicanos SA - Sr. Notes
10.125% due 11/01/04........................... 125 101
Health Care Products - 2.7%
ALARIS Medical, Inc. - Sr. Disc. Notes
0.0% due 08/01/08.............................. 150 82
Beckman Coulter, Inc.
7.45% due 03/04/08............................. 50 47
MEDIQ, Inc.
11.0% due 06/01/08............................. 150 117
Owens & Minor, Inc.
10.875% due 06/01/06........................... 211 224
-------
470
Health Care Services - 2.0%
Beverly Enterprises, Inc.
9.0% due 02/15/06.............................. 40 40
LifePoint Hospitals Holdings. - Sr. Sub. Notes
144A (a)
10.75% due 05/15/09............................ 60 61
Tenet Healthcare Corp. - Sr. Sub Notes
8.125% due 12/01/08............................ 175 165
Triad Hospitals, Inc. - Sr. Sub. Notes 144A (a)
11.0% due 05/15/09............................. 85 87
-------
353
Housing - 3.0%
American Standard Cos., Inc.
7.625% due 02/15/10............................ 35 33
Engle Homes, Inc. - Ser. C
9.25% due 02/01/08............................. 90 85
Falcon Building Products, Inc.
0.0% due 06/15/07.............................. 200 135
Grove Worldwide Llc - Sr. Sub. Notes
9.25% due 05/01/08............................. 85 63
Standard Pacific Corp. - Sr. Notes
8.5% due 06/15/07.............................. 210 204
-------
520
Leisure and Recreation - 4.2%
AMC Entertainment, Inc. - Sr. Sub. Notes
9.5% due 03/15/09.............................. 75 71
9.5% due 02/01/11.............................. 125 116
Aztar Corp. - Sr. Sub. Notes 144A (a)
8.875% due 05/15/07............................ 100 96
Bell Sports, Inc.
11.0% due 08/15/08............................. 150 149
Hollywood Casino Corp. - 144A (a)
11.25% due 05/01/07............................ 200 200
Station Casinos, Inc. - Sr. Sub. Notes
8.875% due 12/01/28............................ 100 97
-------
729
Media - Publishing - 0.4%
American Media Operation Corp. - Sr. Sub. Notes
144A (a)
10.25% due 05/01/09............................ 75 76
Media - TV / Radio - 7.7%
Allbritton Communications Co.
9.75% due 11/30/07............................. 250 256
116
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Media - TV / Radio - Continued
Allbritton Communications Co. - Sr. Sub. Notes
8.875% due 02/01/08............................ $ 40 $ 38
Cablevision SA - Bonds 144A (a)
13.75% due 05/01/09............................ 60 54
Century Communications Corp. - Sr. Disc. Notes
0.0% due 01/15/08.............................. 500 222
Classic Cable, Inc. - Sr. Sub. Notes 144A (a)
9.875% due 08/01/08............................ 120 125
Emmis Communications Corp. - Sr. Sub. Notes
144A (a)
8.125% due 03/15/09............................ 55 52
Frontiervision Holding L.P. - Sr. Disc. Notes
0.0% due 09/15/07.............................. 200 173
Granite Broadcasting Corp. - Sr. Sub. Notes
8.875% due 05/15/08............................ 175 168
Iridium Operating LLC/Capital
11.25% due 07/15/05............................ 200 42
Multicanal SA - 144A (a)
13.125% due 04/15/09........................... 180 164
Young Broadcasting, Inc.
8.75% due 06/15/07............................. 50 48
-------
1,342
Metals and Mining - 0.9%
Johnstown America Industries, Inc. - Sr. Sub.
Notes
11.75% due 08/15/05............................ 100 106
Neenah Corp. - Sr. Sub. Notes 144A (a)
11.125% due 05/01/07........................... 50 49
-------
155
Natural Gas Distribution - 1.0%
Energy Corp. of America - Sr. Sub. Notes
9.5% due 05/15/07.............................. 200 183
Oil - Equipment and Services - 0.5%
Tuboscope, Inc.
7.5% due 02/15/08.............................. 100 88
Oil and Natural Gas Exploration and Production - 4.6%
Abraxas Petro
11.5% due 11/01/04............................. 225 140
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06............................ 125 36
Cross Timbers Oil Co. - Sr. Sub. Notes
8.75% due 11/01/09............................. 50 48
Dailey International, Inc.
9.5% due 02/15/08.............................. 225 143
Kelley Oil & Gas Corp. - Sr. Notes 144A (a)
14.0% due 04/15/03............................. 125 128
Petroleos Mexicanos
8.85% due 09/15/07............................. 175 156
Plains Resources, Inc. - Sr. Sub. Notes
10.25% due 03/15/06............................ 50 51
Pride International, Inc. - Sr. Notes
9.375% due 05/01/07............................ 100 99
-------
801
Paper and Forest Products - 2.3%
American Pad & Paper - Sr. Sub. Notes
13.0% due 11/15/05............................. 55 35
Doman Industries, Ltd. - 144A (a)
12.0% due 07/01/04............................. 75 72
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04............................. 100 62
Grupo Industrial Durango - Notes
12.625% due 08/01/03........................... 100 97
Repap New Brunswick, Inc.
9.0% due 06/01/04.............................. 60 56
10.625% due 04/15/05........................... 75 60
Tembec Industries, Inc.
8.625% due 06/30/09............................ 15 15
-------
397
Personal and Commercial Lending - 0.3%
AMRESCO, Inc. - Sr. Sub. Notes Ser. 98-A
9.875% due 03/15/05............................ 50 38
Arcadia Financial, Ltd. - Sr. Notes
11.5% due 03/15/07............................. 15 13
-------
51
Real Estate Development - 0.4%
Del Webb Corp. - Sr. Sub. Debs.
10.25% due 02/15/10............................ 75 74
Retail - Drug Stores - 1.3%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08............................. 225 227
Retail - Food - 1.0%
Disco S.A. - Notes
9.875% due 05/15/08............................ 75 60
Purina Mills, Inc. - Sr. Sub. Notes
9.0% due 03/15/10.............................. 125 96
Stater Bros. Holdings, Inc.
9.0% due 07/01/04.............................. 25 24
-------
180
Steel - 2.3%
AK Steel Corp. - Sr. Notes
9.125% due 12/15/06............................ 100 102
Armco, Inc. - Sr. Notes
8.875% due 12/01/08............................ 75 77
9.0% due 09/15/07.............................. 75 77
Bayou Steel Corp.
9.5% due 05/15/08............................ . 100 97
117
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Steel - Continued
Weirton Steel Corp. - Sr. Notes
11.375% due 07/01/04........................... $ 50 $ 49
-------
402
Telecommunication Equipment - 1.5%
Covad Communications Group, Inc. - Sr. Notes
12.5% due 02/15/09............................. 50 48
Crown Castle International Corp. - Sr. Discount
Note
0.0% due 11/15/07.............................. 100 70
L-3 Communications Corp. Sr. Sub. Notes
8.5% due 05/15/08.............................. 35 35
Paging Network, Inc.
10.125% due 08/01/07........................... 150 115
-------
268
Telecommunication Services - 19.0%
Bresnan Communications Co. - Sr. Disc. Notes
144A (a)
0.0% due 02/01/09.............................. 50 32
BTI Telecom Corp. - Sr. Notes
10.5% due 09/15/07............................. 125 107
Clearnet Communications, Inc. - Sr. Disc. Notes
0.0% due 05/01/09.............................. 250 142
Echostar DBS Corp. - Sr. Notes 144A (a)
9.375% due 02/01/09............................ 300 304
Falcon Holding Group L.P. - Debs. Ser. B
8.375% due 04/15/10............................ 125 124
Fonda Group, Inc. - Sr. Sub. Notes
9.5% due 03/01/07.............................. 125 109
GCI, Inc. - Sr. Notes
9.75% due 08/01/07............................. 250 246
Globalstar LP/Capital Corp. - Global Star
10.75% due 11/01/04............................ 125 82
GST Telecommunications, Inc. - Sr. Sub. Notes
12.75% due 11/15/07............................ 50 53
Hyperion Telecommunications, Inc. - Sr. Disc.
Notes
13.0% due 04/15/03............................. 140 117
Hyperion Telecommunications, Inc. - Sr. Notes
12.25% due 09/01/04............................ 50 53
Innova State of DE R.L. - Sr. Notes
12.875% due 04/01/07........................... 100 79
Intermedia Communications, Inc. - Sr. Notes
8.875% due 11/01/07............................ 275 261
Intermedia Communications, Inc. - Sr. Notes
Ser. B
8.6% due 06/01/08.............................. 50 46
IXC Communications, Inc. - Sr. Sub Notes
9.0% due 04/15/08.............................. 125 120
KMC Telecom Holdings, Inc. - Sr. Disc. Notes
0.0% due 02/15/08.............................. 275 147
Level 3 Communications, Inc. - Sr. Notes
9.125% due 05/01/08............................ 30 30
MGC Communications, Inc. - Sr. Notes Ser. B
13.0% due 10/01/04............................. 25 23
Nextel Communications - Sr. Disc. Notes
0.0% due 10/31/07.............................. 550 386
NTL Communications Corp. - Sr. Notes
12.375% due 10/01/08........................... 315 216
Price Communications Wireless, Inc.
9.125% due 12/15/06............................ 100 104
RCN Corp. - Sr. Disc. Notes
0.0% due 07/01/08.............................. 175 109
Rogers Cantel, Inc. - Sr. Notes
8.3% due 10/01/07.............................. 50 49
RSL Communications plc
9.125% due 03/01/08............................ 100 92
Telecommunications Techniques Co.
9.75% due 05/15/08............................. 140 138
Time Warner Telecom Llc - Sr. Notes
9.75% due 07/15/08............................. 150 154
-------
3,323
Telephone - 3.5%
Alestra SA - Sr. Notes 144A (a)
12.125% due 05/15/06........................... 175 169
e.spire Communications, Inc. - Sr. Disc. Notes
0.0% due 04/01/06.............................. 100 52
0.0% due 07/01/08.............................. 100 38
ITC DeltaCom, Inc. - Sr. Notes
8.875% due 03/01/08............................ 25 25
9.75% due 11/15/08............................. 25 26
NEXTLINK Communications, Inc. - Sr. Disc. Notes
9.45% due 04/15/08............................. 300 180
Viatel, Inc. - Sr. Notes
11.25% due 04/15/08............................ 125 127
-------
617
Transportation Services - 0.9%
Dunlop Standard Aero Holdings. - Sr. Notes 144A
(a)
11.875% due 05/15/09........................... 150 152
-------
TOTAL PUBLICLY-TRADED BONDS- 95.6% 16,697
-------
Market
Shares Value
(000's)
PREFERRED STOCK
Computer Software and Services - 0.6%
Concentric Network Corp. - PIK Ser. B.......... 106 100
118
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Market
Shares Value
(000's)
PREFERRED STOCK - CONTINUED
Media - Publishing - 0.6%
Primedia, Inc. ................................ 1,250 $ 114
-------
TOTAL PREFERRED STOCK- 1.2% 214
WARRANTS - 0.0%
Telecommunication Services - 0.0%
KMC Telecom Holdings, Inc. - WT 144A (a)
expires 04/15/08 (Cost $0).................... 250 1
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 1.3%
Investment in joint trading account (Note B)
5.291% due 07/01/99........................... $ 225 225
------- -------
TOTAL INVESTMENTS- 98.1% 17,137
Cash and Receivables, less payables- 1.9% 331
------- -------
NET ASSETS- 100.0% $17,468
======= =======
(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 June 30, 1999, securities aggregated
$3,224 or 18.5% of net assets of the Portfolio.
See notes to financial statements.
119
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Belgium - 3.0%
Kingdom of Belgium (GOVF)
9.0% due 03/28/03 ........................ $ 1,800 $ 2,183
Canada - 2.3%
Government of Canada (GOVF)
7.0% due 12/01/06 ........................ 2,300 1,702
France - 6.5%
Government of France - Bonds (GOVF)
5.5% due 10/12/01 ........................ 1,067 1,151
6.0% due 10/25/25 ........................ 1,357 1,506
Government of France - Debs. (GOVF) .......
4.0% due 04/25/09 ........................ 1,420 1,400
Government of France - O.A.T. (GOVF) ......
5.5% due 04/25/07 ........................ 610 669
-------
4,726
Germany - 19.4%
Bundesobligation - Bonds (GOVF)
4.5% due 02/18/03 ........................ 6,400 6,771
Bundesrepublic Deutschland (GOVF) .........
3.75% due 01/04/09 ....................... 2,500 2,427
Bundesrepublic Deutschland - Bonds (GOVF)
6.75% due 04/22/03 ....................... 1,125 1,281
Federal Republic of Germany - Bonds (GOVF)
6.25% due 01/04/24 ....................... 833 954
8.0% due 07/22/02 ........................ 2,000 2,317
Treuhandanstalt - Bonds (FORG) ............
7.5% due 09/09/04 ........................ 281 336
-------
14,086
Italy - 2.1%
Republic of Italy (GOVF)
3.25% due 04/15/04 ....................... 1,500 1,495
Japan - 5.5%
Government of Japan - Bonds (GOVF)
1.9% due 03/20/09 ........................ 383,900 3,203
International American Development Bank
(BANK) ...................................
1.9% due 07/08/09 ........................ 100,000 822
-------
4,025
Netherlands - 9.6%
Government of Netherlands (GOVF)
6.5% due 04/15/03 ........................ 3,100 3,496
Repsol International Finance (FINL) .......
1.0% due 12/14/00 ........................ 3,400 3,502
-------
6,998
Supra National - 1.9%
European Investment Bank - Bond (BANK)
5.875% due 05/12/09 ...................... 1,500 1,407
Sweden - 4.3%
Government of Sweden - Bonds (GOVF)
5.5% due 04/12/02 ........................ 26,000 3,166
United Kingdom - 6.8%
U.K. Treasury (GOVF)
7.25% due 12/07/07 ....................... 2,775 4,945
United States - 32.7%
Chase Manhattan Corp. - Sub. Notes (BANK)
6.0% due 02/15/09 ........................ 1,250 1,157
Cytec Industries, Inc. - Notes (CHEM) .....
6.846% due 05/11/05 ...................... 1,500 1,439
Federal National Mortgage Assoc. (GOVA) ...
6.5% due 07/20/29 ........................ 3,000 2,894
6.5% due 07/01/28 ........................ 62 60
7.0% due 02/01/27 ........................ 304 300
Government National Mortgage Assoc. (GOVA)
7.0% due 07/15/28 ........................ 257 254
7.0% due 09/15/28 ........................ 534 527
7.0% due 12/15/28 ........................ 2,333 2,302
7.0% due 01/15/29 ........................ 1,180 1,164
7.0% due 02/15/29 ........................ 516 344
7.0% due 03/15/29 ........................ 297 293
7.0% due 04/15/29 ........................ 592 584
7.37% due 06/15/38 ....................... 42 43
Lucent Technologies, Inc. - Debs. (TELE)
6.45% due 03/15/29 ....................... 1,107 1,011
Mckesson Corp. - Notes (HEAL) .............
6.4% due 03/01/08 ........................ 1,500 1,425
U.S. Treasury Bills (GOVE)
0.0% due 03/02/00 ........................ 300 291
U.S. Treasury - Bonds (GOVE) ..............
6.75% due 08/15/26 ....................... 2,720 2,912
U.S. Treasury - Notes (GOVE) ..............
6.25% due 02/28/02 ....................... 4,100 4,161
6.625% due 05/15/07 ...................... 1,320 1,375
6.875% due 05/15/06 ...................... 1,170 1,230
-------
23,795
-------
TOTAL PUBLICLY-TRADED BONDS- 94.1% 68,500
SHORT-TERM INVESTMENTS
United Kingdom - 4.1%
Shell Finance Uk plc (FINL)
4.93% due 07/14/99 ....................... 3,000 2,995
United States - 14.7%
Investment in joint trading account (Note B)
5.291% due 07/01/99 ...................... 10,668 10,669
-------
TOTAL SHORT-TERM INVESTMENTS- 18.8% 13,664
TOTAL INVESTMENTS- 112.9% 82,164
Payables, less cash and receivables- (12.9)% (9,382)
------- -------
NET ASSETS- 100.0% $72,782
======= =======
See notes to financial statements.
120
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 1999
- --------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Abbreviation (000's) Investments
Foreign Governmental.............. GOVF 38,666 56.7%
U.S. Governmental................. GOVE 9,680 14.2%
U.S. Governmental Agencies........ GOVA 8,764 12.8%
Financial Services................ FINL 3,502 5.1%
Banks............................. BANK 3,386 5.0%
Chemicals......................... CHEM 1,439 2.1%
Health Care Products.............. HEAL 1,425 2.1%
Telecommunication Equipment....... TELE 1,012 1.5%
Foreign........................... FORG 336 0.5%
-------- ---------
$68,210 100.0%
======== =========
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE A--ORGANIZATION
The John Hancock Variable Series Trust I (the "Fund") is a diversified
open-end management investment company registered under the Investment Company
Act of 1940, as amended. The Fund is organized as a Massachusetts business
trust. The Fund consists of twenty-three portfolios: Large Cap Growth,
Sovereign Bond, Emerging Markets Equity, International Equity Index, Global
Equity, Small Cap Growth, International Balanced, Mid Cap Growth, Large Cap
Value, Money Market, Mid Cap Value, Small/Mid Cap Growth (formerly, Diversified
Mid Cap Growth), Bond Index, Small/Mid Cap CORE, Real Estate Equity, Growth &
Income, Managed, Short-Term Bond, Small Cap Value, International Opportunities,
Equity Index, High Yield Bond and Global Bond (formerly, 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"), John Hancock Mutual Variable
Life Insurance Account UV ("JHMVLAUV"), John Hancock Variable Annuity Account H
("JHVAAH"), and John Hancock Variable Annuity Account JF ("JHVAAJF") 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, Small/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 Global Bond Portfolios: Debt investment securities having a primary market
over-the-counter are valued on the basis of valuations furnished by a pricing
service which determines valuations for normal institutional size trading units
of debt securities, without exclusive reliance upon quoted prices.
For the Money Market Portfolio: The Board of Trustees has determined that the
appropriate method for valuing Portfolio securities is amortized cost, so long
as the average weighted maturity of money market instruments comprising the
Portfolio does not exceed 90 days. Accordingly, Portfolio securities are valued
at amortized cost which approximates market value. The amortized cost method
involves valuing a security at its cost on the date of purchase and thereafter
assuming a constant amortization to maturity of the difference between the
principal amount due at maturity and the cost of the security to the Portfolio.
For each of the Portfolios, short-term investments, with a maturity not to
exceed 60 days, are valued at amortized cost which approximates market value.
For the International Portfolios: Investments in securities traded on national
securities exchanges in the United States or on equivalent foreign exchanges are
normally valued at the last quoted sales price on such exchanges as of the close
of business on the date of which assets are valued. Securities traded in the
over-the-counter market and securities traded with no sales on the day of
valuation are normally valued at their last available bid price. All Portfolio
securities initially expressed in terms of foreign currencies have been
translated into U.S. Dollars as described in "Currency Translation."
Investment securities for which no current market quotations are readily
available, including certain foreign securities, when held by the Portfolios,
are valued at fair value as determined in good faith by the Board of Trustees.
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
Investment security transactions are recorded on the date of purchase or sale.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Dividend income for the Large Cap Growth,
Emerging Markets Equity, International Equity Index, Global Equity,
International Balanced, Large Cap Value, Growth & Income, Managed, Small Cap
Value, International Opportunities and Equity Index Portfolios are shown net of
foreign taxes withheld of $2, $10, $276, $10, $25, $13, $262, $228, $1, $102,
and $30 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
Small/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 June 30, 1999:
Par Market
Name of Issuer Value Value
-------------- -------- ----------
American Express Co.
4.95% due 07/01/99 .................................... $ 3,060 $ 3,060
Clipper Receivables Co.
5.08% due 07/01/99 ................................... 40,000 40,000
Corporate Asset Funding Co.
5.25% due 07/06/99 .................................... 40,000 39,971
DiamlerChrysler Corp.
5.28% due 07/06/99 .................................... 40,000 39,971
John Deere Capital Corp.
4.95% due 07/01/99 .................................... 40,000 40,000
Diageo Capital Corp.
5.30% due 07/07/99 .................................... 40,000 39,965
Enterprise Funding Corp.
5.40% due 07/07/99 .................................... 40,000 39,964
Ford Motor Credit Corp.
5.25% due 07/02/99 .................................... 38,778 38,772
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
Par Market
Name of Issuer Value Value
-------------- -------- ----------
International Business Machines
5.80% due 07/01/99 ................................... 40,000 40,000
Mobil Corp.
4.98% due 07/01/99 ................................... 34,773 34,773
National Australia Funding
4.98% due 07/01/99 ................................... 40,000 40,000
Salomon Smith Barney
5.25% due 07/06/99 ................................... 40,000 39,971
Sears Roebuck Acceptance Corp.
5.27% due 07/07/99 ................................... 1,606 1,604
Shell Oil Co.
5.02% due 07/02/99 ................................... 31,815 31,810
-------- --------
Joint Trading Account Totals ...................... $470,032 $469,861
======== ========
Financial Futures Contracts: The Sovereign Bond, Emerging Markets Equity,
International Equity Index, Global Equity, Small Cap Growth, International
Balanced, Mid Cap Growth, Small/Mid Cap Growth, Small/Mid Cap CORE, Managed,
Short-Term Bond, Equity Index, High Yield Bond and Global Bond Portfolios may
buy and sell financial futures contracts to hedge against the effects of
fluctuations in interest rates and other market conditions. At the time the
Portfolio enters into a financial futures contract, it will be required to
deposit with its custodian a specified amount of cash or U.S. government
securities, known as "initial margin." Each day, the futures contract is valued
at the official settlement price of the board of trade or U.S. commodities
exchange. Daily variation margin adjustments, arising from this "mark to
market," are recorded by the Portfolios as unrealized gains or losses.
When the contracts are closed, the Portfolio recognizes a gain or a loss.
Risk of entering into futures contracts include the possibility that there may
be an illiquid market and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. In addition,
the Portfolio could be prevented from opening or realizing the benefits of
closing out futures positions because of position limits or limits on daily
price fluctuations imposed by an exchange. At June 30, 1999, open positions in
financial futures contracts were as follows:
SOVEREIGN BOND PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
- --------- ---------- ---------- ------------
71 contracts
U.S. 10 Year Treasury Note Future ..... Sept. 99 $ 7,894 $(24)
21 contracts
U.S. Long Bond Future ................. Sept. 99 2,434 19
------- ----
$10,328 $ (5)
======= ====
124
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
INTERNATIONAL EQUITY INDEX PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Loss
- --------- ---------- ---------- ----------
11 contracts
CAC-40 Index Future ................... Sept. 99 $ 517 $ 15
5 contracts
DAX Index Future ...................... Sept. 99 694 (3)
12 contracts
FTSE 100 Index Future ................. Sept. 99 700 (19)
12 contracts
Nikkei 225 Index Future ............... Sept. 99 1,065 27
-------- ----
$ 2,976 $ 20
======== ====
SMALL/MID CAP CORE PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Loss
- --------- ---------- ---------- ----------
1 contract
Russell 2000 Index Future ............. Sept. 99 $231 $17
MANAGED PORTFOLIO
Face
Expiration Amount Unrealized
Sold Date at Value Gain/(Loss)
- ---- ---------- ------------ -------------
193 contracts
German 10 Year Bond Future ......... Sept. 99 $ 21,967 $ 911
20 contracts
Japan 10 Year Bond Future .......... Sept. 99 21,369 549
86 contracts
Long Gilt Bond Future .............. Sept. 99 15,089 433
545 contracts
U.S. 10 Year Treasury Note Future .. Sept. 99 59,814 386
---------- ------
$ 118,239 $2,279
---------- ------
Purchased
- ---------
49 contracts
Australian 10 Year Bond Future ...... Sept. 99 $ 42,326 $ (109)
---------- ------
$1,160,565 $2,170
========== ======
125
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
EQUITY INDEX
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
- --------- ---------- ---------- ------------
40 contracts
S & P 500 Index Futures ............... Sept. 99 $13,817 $463
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.
126
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(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 17, 1999, the Board of Trustees of 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 net assets 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 Small/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 Large Cap Value Portfolio, 0.75% on an annual basis of the first
$100,000 of the Portfolio's net assets; 0.70% for net assets between $100,000
and $250,000; and 0.65% for net assets in excess of $250,000;
For the Short-Term Bond Portfolio, 0.30% on an annual basis of its net
assets;
For the Small Cap Growth Portfolio, 0.75% on an annual basis of its net
assets;
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 for net
assets in excess of $100,000;
For the Mid Cap Value Portfolio, 0.80% on an annual basis of the first
$100,000 of the Portfolio's net assets; 0.775% for net assets between $100,000
and $250,000; and 0.75% for net assets between $250,000 and $500,000; 0.725%
for net assets between $500,000 and $750,000; and 0.70% for all its net assets
once its net assets exceed $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; and 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 Global 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%
127
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
for the net assets in excess of $150,000;
For the International Opportunities Portfolio, 1.00% on an annual basis of
the first $20,000 of the Portfolio's net assets; 0.85% for net assets between
$20,000 and $50,000; and 0.75% for net assets in excess of $50,000; and
For the International Balanced Portfolio, 0.85% on an annual basis of the
first $100,000 of the Portfolio's net assets; and 0.70% for net assets in
excess of $100,000.
John Hancock voluntarily reimbursed and/or waived all investment advisory and
other fund expenses of the Equity Index Portfolio for the period ended June 30,
1999. 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 period ended June 30, 1999, the Investment Adviser voluntarily
contributed approximately $445 to the Emerging Markets Equity Portfolio and
approximately $250 to the Equity Index Portfolio during the year ended December
31, 1997. John Hancock received no shares of beneficial interest or other
consideration in exchange for the contribution which increased the Portfolios'
net asset values.
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
and Small 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 Global 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 Small/Mid Cap Growth and
High Yield Bond Portfolios, each of whom under the supervision of John Hancock,
is responsible for the day-to-day investment management of each of the
Portfolios.
Signator Investors, Inc., a wholly owned subsidiary of 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, JHVAAU, JHVAAH, and JHVAAJF 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 0.10% of each Portfolio's daily net asset
value, John Hancock and JHVLICO will reimburse each Portfolio for such excess.
Accordingly, for the period ended June 30, 1999, the reimbursements paid from
John Hancock and JHVLICO were $48 to Emerging Markets Equity, $48 to Global
Equity, $55 to International Balanced, $19 to Bond Index, $49 to Small/Mid Cap
CORE, $27 to International Opportunities, $332 to Equity Index and $34 to High
Yield Bond.
128
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE D--INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments excluding
short-term securities for each Portfolio for the period ended June 30, 1999 were
as follows:
Sales and
Purchases Maturities
---------- ------------
Large Cap Growth ................................... $ 435,659 $ 450,763
Sovereign Bond ..................................... 558,697 573,381
Emerging Markets Equity ............................ 8,528 6,189
International Equity Index ......................... 4,999 5,564
Global Equity ..................................... 5,141 3,724
Small Cap Growth ................................... 51,823 43,912
International Balanced ............................. 15,568 15,876
Mid Cap Growth ..................................... 132,951 80,022
Large Cap Value ................................... 39,703 18,891
Money Market ....................................... None None
Mid Cap Value ..................................... 68,321 70,832
Small/Mid Cap Growth ............................... 253,145 272,860
Bond Index ......................................... 9,541 3,542
Small/Mid Cap CORE ................................. 2,041 1,396
Real Estate Equity ................................. 8,644 16,980
Growth & Income ................................... 1,231,991 1,194,292
Managed ........................................... 3,614,266 3,614,679
Short-Term Bond ................................... 40,353 44,759
Small Cap Value ................................... 36,115 31,434
International Opportunities ....................... 12,936 11,090
Equity Index ....................................... 159,423 85,219
High Yield Bond ................................... 7,099 4,305
Global Bond ....................................... 170,746 159,519
129
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE D--INVESTMENT TRANSACTIONS--CONTINUED
The identified cost of investments owned for each Portfolio (including earned
discount on corporate Short-term notes, and commercial paper) and their
respective gross unrealized appreciation and depreciation at June 30, 1999 for
federal income tax purposes are as follows:
Net Unrealized
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ ----------------
Large Cap Growth ..... $ 893,354 $ 366,566 $23,101 $ 343,465
Sovereign Bond ....... 891,712 9,656 24,902 (15,246)
Emerging Markets
Equity ............... 11,616 2,052 816 1,236
International Equity
Index ................ 165,889 27,896 11,705 16,191
Global Equity ......... 16,116 2,705 1,127 1,578
Small Cap Growth ..... 70,118 26,302 2,510 23,792
International Balanced. 27,508 1,958 1,483 475
Mid Cap Growth ....... 146,418 41,166 2,699 38,467
Large Cap Value ....... 136,445 25,595 2,636 22,959
Money Market ......... 356,180 None None None
Mid Cap Value ......... 94,329 10,306 4,329 5,977
Small/Mid Cap Growth .. 181,700 18,781 3,708 15,073
Bond Index ........... 32,693 5 1,265 (1,260)
Small/Mid Cap CORE ... 5,539 1,156 420 736
Real Estate Equity ... 136,042 18,002 7,708 10,295
Growth & Income ....... 2,831,899 1,344,403 56,134 1,288,269
Managed ............... 3,163,963 633,511 66,931 566,580
Short-Term Bond ....... 70,937 7 1,059 (1,052)
Small Cap Value ....... 70,904 8,678 5,329 3,349
International
Opportunities ........ 60,635 8,961 2,723 6,238
Equity Index ......... 268,824 75,818 5,687 70,141
High Yield Bond ....... 17,928 279 1,070 (791)
Global Bond ........... 84,352 67 2,255 (2,188)
The aggregate cost of each Portfolio's investments was substantially the same
for the book and federal income tax purposes as of June 30, 1999.
130
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS
As of June 30, 1999 the International Equity Index, Global Equity,
International Balanced, Managed and Global Bond Portfolios had open forward
foreign currency contracts which contractually obligate the Portfolio to deliver
or receive currencies at a specified date, as follows:
INTERNATIONAL EQUITY INDEX PORTFOLIO
Maturity Net Unrealized
Currency Sold Date Cost Value Appreciation
- --------------------------------- -------- ------- ------- --------------
Euro Dollar .......... $ 551 09/17/99 $ 579 $ 571 $ 8
Euro Dollar .......... 410 09/30/99 431 425 6
Japanese Yen ......... 126,127 09/09/99 1,048 1,053 (5)
Pound Sterling ....... 399 09/17/99 634 629 5
----
14
----
Currency Purchased
- ---------------------------------
Euro Dollar .......... $ 1,211 09/17/99 $1,275 $1,255 $(20)
Euro Dollar .......... 893 09/30/99 941 926 (15)
Japanese Yen ......... 252,860 09/09/99 2,151 2,112 (39)
Pound Sterling ....... 848 09/17/99 1,358 1,338 (20)
----
(94)
----
$(80)
====
GLOBAL EQUITY PORTFOLIO
Maturity Net Unrealized
Currency Sold Date Cost Value Appreciation
- -------------------------------------- -------- ---- ----- --------------
Japanese Yen ............... $58,430 09/01/99 $500 $487 $13
Japanese Yen ............... 20,207 09/10/99 170 169 1
Japanese Yen ............... 35,348 09/29/99 295 295 0
---
$14
===
INTERNATIONAL BALANCED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ----------------------------------- -------- ------ ------ --------------
Canadian Dollar ....... $ 600 09/27/99 399 409 (9)
Danish Krone ........... 6,500 09/27/99 961 906 55
Pound Sterling ......... 1,360 09/27/99 2,201 2,145 56
-----
102
-----
Currency Purchased
- -----------------------------------
Australian Dollar ..... $ 920 09/27/99 $ 592 $ 609 $ 17
Euro Dollar ............ 2,900 09/27/99 3,143 3,010 (133)
Japanese Yen ........... 215,000 09/27/99 1,861 1,801 (60)
Pound Sterling ......... 110,000 09/27/99 176 173 (3)
Swedish Krona .......... 4,000 09/27/99 493 474 (19)
Swiss Franc ........... 880 09/27/99 612 571 (41)
-----
(239)
-----
$(137)
=====
131
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- ----------------------------------- -------- -------- -------- ----------------
<S> <C> <C> <C> <C> <C>
Australian Dollar ... $ 4,228 07/06/99 $ 2,662 $ 2,795 $ (133)
Australian Dollar ... 4,228 10/05/99 2,806 2,798 8
Canadian Dollar ..... 16,406 07/06/99 10,852 11,142 (290)
Canadian Dollar ..... 15,615 10/05/99 10,686 10,619 67
Danish Krone ....... 37,111 07/06/99 5,390 5,148 242
Danish Krone ....... 37,111 10/05/99 5,249 5,178 71
European Dollar ..... 127,819 07/06/99 138,097 131,819 6,278
European Dollar ..... 88,490 07/08/99 94,900 91,273 3,627
European Dollar ..... 127,411 10/05/99 134,036 132,310 1,726
European Dollar ..... 33,111 10/07/99 34,560 34,389 171
Japanese Yen ....... 9,536,921 07/06/99 80,271 78,896 1,375
Japanese Yen ....... 7,204,476 07/07/99 60,240 59,615 625
Japanese Yen ....... 14,299,897 07/08/99 119,010 118,345 665
Japanese Yen ....... 9,535,921 10/05/99 79,599 79,974 (375)
Japanese Yen ....... 3,116,102 10/07/99 25,920 26,142 (222)
Pound Sterling ..... 14,503 07/06/99 23,383 22,862 521
Pound Sterling ..... 4,280 07/07/99 6,908 6,747 161
Pound Sterling ..... 25,735 07/08/99 41,256 40,566 690
Pound Sterling ..... 13,916 10/05/99 22,126 21,954 172
Pound Sterling ..... 6,543 10/07/99 10,368 10,323 45
Swedish Krona ....... 45,439 07/06/99 5,493 5,355 138
Swedish Krona ....... 39,777 10/05/99 4,781 4,714 67
Swiss Franc ......... 142,564 07/08/99 95,370 91,758 3,612
Swiss Franc ......... 52,567 10/07/99 34,560 34,193 367
--------
19,608
--------
Currency Purchased
- -----------------------------------
Australian Dollar ... $ 4,228 07/06/99 $ 2,803 $ 2,795 $ (8)
Canadian Dollar ..... 16,406 07/06/99 11,214 11,142 (72)
Danish Krone ........ 37,111 07/06/99 5,219 5,148 (71)
European Dollar ..... 127,819 07/06/99 133,578 131,819 (1,759)
European Dollar ..... 88,490 07/08/99 94,714 91,273 (3,441)
European Dollar ..... 8,206 10/07/99 8,640 8,522 (118)
Japanese Yen ....... 9,535,921 07/06/99 78,563 78,896 333
Japanese Yen ....... 7,204,476 07/07/99 60,984 59,615 (1,369)
Japanese Yen ....... 14,299,897 07/08/99 119,705 118,345 (1,360)
Japanese Yen ....... 2,066,826 10/07/99 17,280 17,339 59
Pound Sterling ..... 14,503 07/06/99 23,062 22,862 (200)
Pound Sterling ..... 4,280 07/07/99 6,948 6,747 (201)
Pound Sterling ..... 25,735 07/08/99 41,390 40,566 (824)
Swedish Krona ....... 45,439 07/06/99 5,418 5,355 (63)
Swiss Franc ......... 142,564 07/08/99 95,053 91,758 (3,295)
Swiss Franc ......... 155,637 10/07/99 8,640 8,503 (137)
--------
(12,525)
--------
$ 7,084
========
</TABLE>
132
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
GLOBAL BOND PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
- -------------------------------- -------- ------- ------- --------------
Canadian Dollar ..... $ 2,620 07/09/99 $ 1,805 $ 1,779 $ 26
European Dollar ..... 28,714 07/09/99 30,421 29,619 802
Japanese Yen ....... 393,625 07/09/99 3,325 3,258 67
Pound Streling ..... 3,175 07/09/99 5,116 5,004 112
Swedish Krona ....... 3,098 07/09/99 372 365 7
------
1,014
------
Currency Purchased
- --------------------------------
Canadian Dollar ..... $ 108 07/09/99 $ 73 $ 73 $ 0
European Dollar ..... 142 07/09/99 147 146 (1)
Pound Streling ..... 68 07/09/99 108 106 (2)
------
(3)
------
$1,011
======
133
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 1999
- --------------------------------------------------------------------------------
(000's Omitted)
NOTE F--OTHER MATTERS--(UNAUDITED)
Section 30 and Rule 30d-1(b) under the Investment Company Act of 1940, as
amended, requires registered management investment companies to furnish
information relating to any matter submitted during the reporting period to a
vote of Shareholders of the Fund. John Hancock Variable Series Trust I solicited
a vote at a special meeting of Contractowner/Policyholders held on April 23,
1999 on the following matters:
For Against Abstain
--- ------- ---------
FOR ALL PORTFOLIOS OF THE TRUST:
1. To approve the election of the six
members of the Board of Trustees to
serve until their successors are
elected and qualified. The trustees
up for election are William H.
Dykstra, Elizabeth G. Cook, Thomas
J. Lee, Michele G. Van Leer, Diane
C. Kessler, and Robert Verdonck.
The each member was elected by,
William H. Dykstra 97% 3% 0%
Elizabet G. Cook 97% 3% 0%
Thomas J. Lee 97% 3% 0%
Michele G. Van Leer 97% 3% 0%
Diane C. Kessler 97% 3% 0%
Robert Verdonck 97% 3% 0%
FOR THE LARGE CAP GROWTH, SOVEREIGN
BOND, REAL ESTATE EQUITY, AND GROWTH &
INCOME PORTFOLIOS OF THE TRUST:
2. To change the status of the
investment objectives and certain
investment policies to make them
generally non-fundamental. The
resolution was adopted by, 88% 6% 6%
FOR THE LARGE CAP GROWTH, SOVEREIGN
BOND, MONEY MARKET, REAL ESTATE EQUITY,
GROWTH & INCOME, AND MANAGED PORTFOLIOS
OF THE TRUST:
3. To approve changes in investment
restrictions to allow each
Portfolio to lend their portfolio
securities in an amount not to
exceed 33.3% of the respective
Portfolio's total assets. The
resolution was adopted by, 87% 7% 6%
FOR THE DIVERSIFIED MID CAP GROWTH AND
SHORT-TERM BOND PORTFOLIOS OF THE TRUST:
4. To approve changes in investment
restrictions to allow each
Portfolio to invest in repurchase
agreements maturing in more than
seven days, other restricted
securities, or other securities
that are not directly marketable,
if the total of all such securities
owned by the Portfolio in question
would exceed 10% of its asset. The
resolution was adopted by, 88% 7% 5%
FOR ALL PORTFOLIOS OF THE TRUST:
5. To change the methodology for
allocating the majority of
non-advisory fund expenses to a
percentage of each Portfolio's
average daily net assets and to
reduce the expense cap for
non-advisory expenses to 0.10% of
each Portfolio's average daily net
assets. The resolution was adopted
by, 89% 5% 6%
134
<PAGE>
Officers and Trustees
Michele G. Van Leer, Chairman
Thomas J. Lee, President and Vice Chairman
Laura L. Mangan, Secretary
Raymond F. Skiba, Treasurer
Derek D. Burke, Compliance Officer
Mary Ellen Maurer, Assistant Compliance Officer
Patrick F. Smith, Controller
Elizabeth G. Cook
William H. Dykstra
Reverend Diane C. Kessler
Robert F. Verdonck
Investment Adviser
John Hancock Mutual Life Insurance Company
John Hancock Place
P.O. Box 111
Boston, MA 02117
Sub-Investment Advisers
Independence Investment Associates, Inc.
One Liberty Square
Boston, MA 02109
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, MA 02199
Brinson Partners, Inc.
209 South La Salle Street
Chicago, IL 60604-1295
Goldman Sachs Asset Management
One New York Plaza
New York, NY 10004
INVESCO Management & Research
101 Federal Street
Boston, MA 02110
J.P. Morgan Investment Management Inc.
522 Fifth Avenue
New York, NY 10036
Janus Capital Corporation
100 Fillmore Street
Denver, CO 80206-4923
Mellon Bond Associates, LLP
One Mellon Bank Center, Suite 4135
Pittsburgh, PA 15258-0001
Montgomery Asset Management, LLC
101 California Street
San Francisco, CA 94111
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
Rowe Price-Fleming International, Inc.
100 East Pratt Street
Baltimore, MD 21202
Scudder Kemper Investments, Inc.
345 Park Avenue
New York, NY 10154-0010
State Street Global Advisors
Two International Place
Boston, MA 02110
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
<PAGE>
[LOGO OF JOHN HANCOCK APPEARS HERE]
The Variable Series Trust consists of 23 funds used as investment options for
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 funds 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
[LOGO OF IMSA APPEARS HERE]
