<PAGE>
Securities Act Registration No. 333-_______
U.S. Securities And Exchange Commission
Washington, D.C. 20549
Form N-14
Registration Statement Under The Securities Act Of 1933
[ ] Pre-Effective Amendment No. __ [ ] Post Effective Amendment No. __
(Check appropriate box or boxes)
John Hancock Variable Series Trust I
(Exact Name of Registrant as Specified in Declaration of Trust)
197 Clarendon Street
Boston, Massachusetts 02117
(Address of Principal Executive Offices)
Registrant's Telephone Number: (713) 214-1456
Name and Address of Agent for Service: Copy to:
ARNOLD BERGMAN, ESQUIRE THOMAS C. LAUERMAN, ESQUIRE
John Hancock Life Insurance Company Freedman, Levy, Kroll & Simonds
197 Clarendon Street 1050 Connecticut Avenue, N.W.
Boston, MA 02117 Suite 825
Washington, D.C. 20036
Approximate Date of Proposed Public Offering: As soon as practicable after the
Registration Statement becomes effective under the Securities Act of 1933. It is
proposed that this filing will become effective on November 6, 2000 pursuant to
Rule 488 under the Act.
Pursuant to Rule 429 under the Act, the prospectus in this registration
statement also relates to Registrant's currently effective registration
statement on Form N-1A, File No. 33-2081. No filing fee is due in reliance on
Section 24(f) of the Act.
The title of the securities being registered is shares of beneficial interest.
<PAGE>
INTERNATIONAL OPPORTUNITIES II FUND
(Formerly the Global Equity Fund)
a Separate Investment Fund of
JOHN HANCOCK VARIABLE SERIES TRUST I
197 Clarendon Street
Boston, Massachusetts 02117
November __, 2000
Dear Variable Life Policy or Variable Annuity Contract Owner:
The enclosed documents seek your approval to combine the International
Opportunities II Fund ("Acquired Fund") with the International Opportunities
Fund ("Acquiring Fund").
Each of these Funds is a separate investment fund of John Hancock Variable
Series Trust I.
As discussed in the accompanying documents, the Acquiring Fund and the
Acquired Fund have
. identical investment goals and strategies and
. the same investment adviser and sub-adviser.
However, the combination of the Funds is expected to produce economies of
scale and other expense savings that will result in lower costs to you and other
Owners who currently are participating in International Opportunities II Fund.
We do not believe that the combination will have any adverse tax
consequences, costs or other disadvantages for you.
The Trust's Board of Trustees has unanimously approved the proposal as
being in the best interests of your Fund and recommends that you vote FOR the
proposal.
YOUR VOTE IS IMPORTANT. PLEASE TAKE A MOMENT NOW TO SIGN, DATE AND RETURN
THE ENCLOSED VOTING INSTRUCTION FORM.
Sincerely,
Michele G. Van Leer
Chairman
<PAGE>
JOHN HANCOCK VARIABLE SERIES TRUST I
VOTING INSTRUCTION FORM
PLEASE SIGN, DATE AND RETURN THIS VOTING INSTRUCTION FORM IN THE ENCLOSED
POSTAGE-PAID ENVELOPE
THESE VOTING INSTRUCTIONS ARE SOLICITED BY THE TRUSTEES FOR THE SPECIAL MEETING
OF SHAREHOLDERS-DECEMBER 22, 2000 - 11:00 A.M. EASTERN TIME, 197 CLARENDON
STREET, BOSTON, MASSACHUSETTS
Please fold and detach card at perforation before mailing
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES II FUND
A Special Meeting of Shareholders of International Opportunities II Fund of
John Hancock Variable Series Trust I will be held at the office of John Hancock
Life Insurance Company ("John Hancock"), 197 Clarendon Street, Boston,
Massachusetts, (telephone 1-800-732-5543) at 11:00 a.m. Eastern Time, on Friday,
December 22, 2000. By signing and dating below, you instruct the persons named
below to, and they will, vote the proposal on the reverse side as marked or, if
not marked, vote "FOR" the proposal on the reverse side, and to use their
discretion to vote on any other matter incident to the conduct of the Special
Meeting. Whether or not you intend to personally attend the Special Meeting,
please complete, detach and mail this form in the enclosed envelope at once.
Thomas J. Lee and Michele G. Van Leer, and each of them, with power of
substitution in each, are hereby instructed to vote the shares of the above
named Fund attributable to the undersigned at the Special Meeting of
Shareholders and at any adjournment thereof.
DATE:
------------------------------------------------
Please be sure to sign and date this proxy.
-----------------------------------------------------
Signature(s) of Shareholder(s)
Please detach at perforation before mailing.
--------------------------------------------------------------------------------
Please vote by filling in the appropriate box below.
FOR AGAINST ABSTAIN
To approve combining the International [_] [_] [_]
Opportunities Fund II with the
International Opportunities Fund.
82642
<PAGE>
INTERNATIONAL OPPORTUNITIES II FUND
(Formerly the Global Equity Fund)
A Separate Investment Fund of
JOHN HANCOCK VARIABLE SERIES TRUST I
Notice of Special Meeting of Shareholders
A Special Meeting of Shareholders of the International Opportunities II
Fund will be held at the offices of John Hancock Life Insurance Company ("John
Hancock"), 197 Clarendon Street, Boston, Massachusetts (telephone
1-800-732-5443), at 11:00 A.M., on Friday, December 22, 2000, to consider and
vote upon the following matters:
(1) Combining International Opportunities II Fund (the "Acquired Fund")
with International Opportunities Fund (the "Acquiring Fund"). Each
shareholder of the Acquired Fund will receive that number of the
Acquiring Fund's shares that has an aggregate net asset value equal to
the aggregate net asset value of that shareholder's shares of the
Acquired Fund.
(2) Any other business as may properly come before the meeting or any
adjournment thereof.
An owner of a variable life insurance policy or a variable annuity contract
("Owner") will be entitled to give voting instructions only if he/she was the
Owner of record as of the close of business on October 31, 2000.
Boston, Massachusetts MICHELE G. VAN LEER
November __, 2000 Chairman, Board of Trustees
WHETHER OR NOT YOU EXPECT TO BE PRESENT AT THE MEETING, PLEASE COMPLETE AND
RETURN THE ENCLOSED FORM OF VOTING INSTRUCTIONS. YOU MAY STILL VOTE IN PERSON IF
YOU ATTEND THE MEETING.
83050
<PAGE>
INTERNATIONAL OPPORTUNITIES II FUND
(Formerly the Global Equity Fund)
and
INTERNATIONAL OPPORTUNITIES FUND
Each a Separate Investment Fund of
JOHN HANCOCK VARIABLE SERIES TRUST I
197 Clarendon Street
Boston, Massachusetts 02117
Toll Free: 1-800-732-5443
COMBINED PROXY STATEMENT AND PROSPECTUS
Dated: November __, 2000
This document is being furnished in connection with a Special Meeting of
Shareholders of the International Opportunities II Fund (the "Acquired Fund") to
be held on Friday, December 22, 2000. Prior to June 13, 2000, the Acquired Fund
was named the Global Equity Fund.
At the meeting, the shareholders of the Acquired Fund will be asked to
consider and approve the acquisition of the Acquired Fund by the International
Opportunities Fund ("Acquiring Fund"). This Combined Proxy Statement and
Prospectus ("Proxy Statement/Prospectus") sets forth the information that a
shareholder of the Acquired Fund should know before voting on the proposed Fund
combination. Please read it and retain it for future reference.
Contents of This Proxy Statement/Prospectus Page
Synopsis of the Proposed Combination..........................................3
Board Consideration of the Combination........................................5
Reasons for Combining the Funds...............................................6
Further Comparison of the Acquiring Fund and the Acquired Fund................7
Voting Procedures and Conduct of the Shareholders' Meeting....................9
Capitalization of the Funds..................................................12
Plan and Agreement of Reorganization.........................................12
Information Filed With The Securities and Exchange Commission................12
Appendix A - Basic Information About International Opportunities Fund
(the "Acquiring Fund")...................................................A-1
Appendix B - Performance Information Pertaining to the Acquiring
Fund ("International Opportunities Fund).................................B-1
Appendix C - Share Ownership Information....................................C-1
1
<PAGE>
The Trust is a series-type open-end management investment company. The
Trust also has filed with the Securities and Exchange Commission (the "SEC") a
Statement of Additional Information, dated November __, 2000, relating to the
proposed combination of the Acquired and Acquiring Funds. The Statement of
Additional Information is incorporated by reference into this Proxy
Statement/Prospectus.
A prospectus of the Acquired Fund, dated May 1, 2000, as supplemented June
13, 2000, (the "Acquired Fund Prospectus") also is on file with the SEC and is
incorporated into this Proxy Statement/Prospectus by reference. A related
Statement of Additional Information, dated June 30, 2000 also is on file with
the SEC Statement of Additional Information for the Acquiring Fund. That
Statement of Additional Information also is incorporated into this Proxy
Statement/ Prospectus by reference. You can request a free copy of any of these
documents, using the address or toll-free number shown on the cover of this
Proxy Statement/Prospectus.
The SEC maintains a Web site at http://www.sec.gov that contains the
prospectuses and statements of additional information described above, material
incorporated by reference, and other information about the Acquired and
Acquiring Funds.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE
SECURITIES DESCRIBED IN THIS PROXY STATEMENT/PROSPECTUS, AND HAS NOT PASSED ON
THE ACCURACY OR THE ADEQUACY OF THIS PROXY STATEMENT/PROSPECTUS. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME.
2
<PAGE>
SYNOPSIS OF THE PROPOSED COMBINATION
The Acquired Fund and the Acquiring Fund are very similar Funds:
. Each is a separate investment fund of John Hancock Variable Series
Trust I (the "Trust"), which is a Massachusetts Business Trust;
. Each has substantially the same investment goals, policies and
strategies;
. Each has the same investment adviser and (for day-to-day portfolio
management) the same sub-adviser, who manages the Funds in
substantially the same manner; and
. Each is subject to substantially the same risks. (Please refer to
Appendix A at the end of this Proxy Statement/Prospectus for
additional information about these risk factors.)
Because these two Funds are so similar, the purpose of combining them is simply
to achieve operating efficiencies. There will be no resulting increase in the
fees and expenses borne by any shareholder. In fact, over time, shareholders can
expect to benefit from lower fees and expenses than if the two Funds remained
separate.
The following table shows the fees and expenses for the year ended December
31, 1999 for each Fund, as well as on a "pro-forma" basis as if the combination
had occurred at the beginning of that year:
Fees and Expenses
<TABLE>
<CAPTION>
International International Pro-Forma of
Opportunities II Opportunities Combined Acquired
Fund (Acquired Fund (Acquiring Fund and Acquiring
Type of Fee or Expense Fund) Fund) Fund
---------------------- ----- ----- ----
<S> <C> <C> <C>
Sales Charge Imposed on Purchases.................... None None None
Deferred Sales Charge................................ None None None
Sales Charge Imposed on Reinvested
Dividends.......................................... None None None
Redemption Fee....................................... None None None
Exchange Fee......................................... None None None
Maximum Account Fee.................................. None None None
Distribution or Service (12b-1) Fees................. None None None
</TABLE>
3
<PAGE>
<TABLE>
<S> <C> <C> <C>
Investment Management Fees (as a % of
average daily net assets).......................... 1.00%1 0.87% 0.76%
Other Expenses....................................... 0.50%2 0.29%2 0.33%
Total Annual Fund Operating Expenses............ 1.50%2 1.16%2 1.09%
</TABLE>
Examples of Fund Expenses
The following examples are intended to help you compare the cost of
investing in the Acquired Fund with the cost of investing in the Acquiring Fund.
The examples assume that Fund expenses continue at the rates shown in the table
above.
The examples assume that a shareholder invests $10,000 in each alternative
for the time periods indicated and then redeems all of the shareholder's shares
at the end of those periods. The example also assumes that the shareholder's
investment has a 5% return each year. (The example does not reflect the fees and
expenses associated with variable annuity and variable life insurance contracts
for which the Funds serve as investment vehicles.) Although your actual returns
may be higher or lower, based on these assumptions your cost would be:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
The Acquired Fund (International
Opportunities II Fund)................................. $ 153 $ 474 $ 818 $ 1,791
The Acquiring Fund (International
Opportunities Fund..................................... $ 118 $ 368 $ 638 $ 1,409
Acquired Fund and Acquiring Fund
Combined............................................... $ 111 $ 347 $ 601 $ 1,329
</TABLE>
--------------------------------
In the combination, the Acquiring Fund will acquire all of the Acquired
Fund's assets and assume all of its liabilities. Also, the Acquiring Fund will
issue its shares in place of all then outstanding shares of the Acquired Fund.
The combination has been structured as a tax-free reorganization. Therefore, the
combination will have no tax consequences for any Owner. John Hancock will pay
all expenses associated with the combination.
-------------------------
1 Restated to reflect investment management fee increase effective as of
November 1, 2000.
2 Before expense reimbursement provided for in the Fund's investment
management agreement with John Hancock. After the reimbursement, Other Expenses
would be 0.10% for each Fund and Total Operating Expenses would be 1.10% for the
Acquired Fund, 0.97% for the Acquiring Fund and 0.86% for the Pro-Forma
Combined.
4
<PAGE>
The combination will take place at the Funds' regular net asset values per
share. This means that the value of each shareholder's account after the
combination will be exactly the same as if the combination has not occurred.
The Trust's Board of Trustees has unanimously approved the combination of the
Funds as being in the best interests of the Acquired Fund.
BOARD CONSIDERATION OF THE COMBINATION
The Trust's Board of Trustees has determined that combining the Acquired
Fund with the Acquiring Fund is in the best interests of the Acquired Fund, and
the Board of Trustees recommends approval of the combination by the shareholders
of the Acquired Fund at the meeting.
The Trustees considered this matter at a Board meeting held on September
27, 2000. The factors relevant to the Trustees' conclusions included the
following:
. The fact that, except for their size, the Acquired Fund and the
Acquiring Fund are now essentially identical.
. The favorable performance record of the Acquiring Fund.
Information about this performance is set forth in Appendixes A
and B at the end of this Proxy Statement/Prospectus. (The
Acquired Fund's performance record was less relevant to the
Board, because it was achieved by a sub-adviser that has now been
terminated and that used a somewhat different investment
program.)
. The fact that, at the time of the Board meeting, the Acquired
Fund had about $26 million of assets, while the Acquiring Fund
had approximately $102 million. The Trustees considered that
combining the two Funds, therefore, would afford Acquired Fund
shareholders the advantage of economies of scale.
. The expected expense reductions that Acquired Fund shareholders
will benefit from as a result of the combination.
. The fact that the combination will not in any way disadvantage
either Fund.
5
<PAGE>
REASONS FOR COMBINING THE FUNDS
Background
Prior to June 13, 2000, the Acquired Fund had a "global" investment
strategy, which was reflected in the Fund's name: "Global Equity Fund." "Global"
means that the Fund sought to invest in a mix of U.S. and non-U.S. securities.
Scudder Kemper Investments Inc. ("Scudder") had provided day-to-day portfolio
management services to the Fund since the Fund's inception in 1998.
Recent Changes to the Fund's Investment Program
As of June 13, 2000, upon John Hancock's recommendation, significant
changes were made in this Fund's investment program. Most importantly, Scudder
was replaced as the Fund's sub-adviser, and the Fund's investment program was
changed from a "global" to an "international" one. An "international" program
seeks to concentrate more exclusively on non-U.S. investments.
Also as of June 13, 2000, the Trustees, consistent with a recommendation of
John Hancock, appointed T. Rowe Price International, Inc. ("T. Rowe Price") to
take over as the sub-adviser to the Fund. Subsequently, on October 20, 2000, the
Fund's shareholders approved the Fund's new sub-investment management agreement
with T. Rowe Price and approved related changes in the Fund's investment
management agreement with John Hancock.
Among the reasons that John Hancock and the Trust's Board of Trustees
selected T. Rowe Price as the Acquired Fund's new sub-adviser was their
favorable evaluation of T. Rowe Price's service to the Trust's International
Opportunities Fund. (T. Rowe Price has been the sub-adviser to that Fund since
its inception in 1996.) Accordingly, since taking over as the Acquired Fund's
sub-adviser, T. Rowe Price has sought to manage the Acquired Fund in the same
way as it manages the International Opportunities Fund. To reflect this new
approach, the Acquired Fund was renamed "International Opportunities II Fund."
Potential Benefits from Combining the Funds
Because, as discussed above, the Acquired Fund is now substantially similar
to the International Opportunities Fund, it is possible to combine these two
funds without disrupting their investment programs. As a result of the
combination, shareholders will be part of a significantly larger Fund that can
be operated more economically.
There are two main reasons for this. First, a larger size permits a Fund to
negotiate lower prices for certain items. For example, the investment management
fees that the Funds pay to John Hancock are subject to automatic reductions
(commonly referred to as "break points") as a
6
<PAGE>
Fund's assets increase. Thus, once the Acquired Fund's assets are added to those
of the Acquiring Fund, the percentage of such assets paid as investment
management fees will be lower than the rate the Acquired Fund would have paid on
its assets alone. The Acquired Fund's shareholders will directly benefit from
any such cost reductions.
Second, many administrative functions that now have to be performed
separately for each Fund will have to be performed for only one Fund after the
combination. Again, Acquired Fund shareholders can expect to benefit over time
from any such savings.
FURTHER COMPARISON OF THE ACQUIRING FUND AND THE ACQUIRED FUND
Investment Goal
The Acquiring Fund and the Acquired Fund have the same investment goal:
long-term growth of capital.
The investment goal of both Funds is "non-fundamental," which means that it
may be changed by the Board of Trustees without shareholder approval.
Investment Strategies
The investment strategies for the Acquiring Fund and the Acquired Fund are
identical. Both invest primarily in a diversified mix of common stocks of large
established and medium-sized foreign companies located throughout the world.
They will not invest more than 20% of their assets in emerging market stocks.
T. Rowe Price uses substantially the same personnel and analytical
techniques in managing each of these Funds.
For additional details about the Funds' investment strategies, please refer
to Appendix A at the end of this Proxy Statement/Prospectus.
Fundamental Investment Restrictions
The investment restrictions adopted by each Fund as "fundamental" are set
forth under the caption "The Funds' Fundamental Investment Restrictions" in the
Trust's Statement of Additional Information. A "fundamental" investment
restriction is one that cannot be changed without approval of the Fund's
shareholders.
In minor respects, the Acquiring Fund's Fundamental Investment Restrictions
are narrower than those of Acquired Fund. This means that the Acquired Fund
theoretically could
7
<PAGE>
engage in certain practices that the Acquiring Fund could not. In practice,
however, T. Rowe Price has ample latitude to implement the Funds' investment
program, under either set of restrictions.
Accordingly, John Hancock does not regard these differences as material.
Distribution of Fund Shares
The shares of both the Acquired Fund and the Acquiring Fund are identical
shares of beneficial interest, except that they each represent an interest in a
different investment portfolio of the Trust.
The Acquired Fund and the Acquiring Fund each sells its shares exclusively
to the Accounts of John Hancock and its affiliated insurance companies to fund
variable annuity contracts and variable life insurance contracts issued by the
companies. The Accounts buy or redeem shares of a Fund based on (1) a contract
or policy Owner's instruction to invest or receive back monies under a contract
(such as making a premium payment or surrendering a contract) and (2) the
operation of a contract (such as deduction of contract fees and charges).
Therefore, the "distribution" of shares of both Funds is highly dependent
on the efforts of John Hancock and its affiliated companies to promote the offer
and sale of the variable annuity and variable life insurance contracts they
issue.
Investment Advisory Services
John Hancock serves as investment adviser to both the Acquired Fund and the
Acquiring Fund. In this capacity, John Hancock advises each Fund in connection
with policy decisions; administers the Funds' day-to-day operations; provides
the Funds with personnel, office space, equipment and supplies; maintains most
Fund records; and supervises the activities of the Funds' sub-adviser.
The Acquired Fund and the Acquiring Fund pay investment management fees to
John Hancock pursuant to identical fee schedules: 1.00% per annum of the Fund's
first $20,000,000 of the Fund's average daily net assets; 0.85% of the next
$30,000,000; and .75% for any additional amounts. The Acquired Fund currently
has less than [$25,000,000] of assets, while the combined assets of the Acquired
Fund and the Acquiring Fund will exceed [$125,000,000]. Therefore, the effective
fee rate will be lower for Acquired Fund shareholders after the combination.
Prior to November 1, 2000, International Opportunities II Fund paid management
fees to John Hancock at a rate of .90% per annum for the first $50,000,000 of
the Fund's average daily net assets; .80% of the next $100,000,000; and .70% of
any additional amounts.
T. Rowe Price serves as sub-adviser for each Fund. In this capacity T. Rowe
Price has primary responsibility for making investment decisions for the Funds'
investment portfolios and
8
<PAGE>
placing orders with brokers and dealers to implement those decisions.
T. Rowe Price receives its compensation from John Hancock, and the Funds
pay no sub-management fees over and above the management fee they pay to John
Hancock. T. Rowe Price receives sub-management fees from John Hancock at the
same rate for the Acquiring Fund as for the Acquired Fund: .75% per annum of the
first $20,000,000 of each Fund's average daily net assets; .60% of the next $30
million; .50% for the next $150,000,000; and .50% on all assets if the Fund's
assets are $200,000,000 or more.
Net Asset and Share Valuations
Each Fund sells and buys back its shares at the net asset value per share
("NAV") next computed after receipt by a separate account of a contract or
policy Owner's instructions. Each Fund calculates its NAV:
. by dividing its net assets by the number of its outstanding
shares,
. once daily as of the close of regular trading on the New York
Stock Exchange (generally at 4 p.m., New York City time) on each
day the Exchange is open.
The Funds can be expected to hold securities primarily listed on foreign
exchanges that trade on weekends or other days when the Trust does not calculate
NAV. Consequently, NAV may change on days when Owners will not be able to
instruct a separate account to buy or redeem fund shares.
The Funds value their securities based on market quotations, amortized
cost, valuations of independent pricing services, or fair value determined in
accordance with procedures approved by the Trust's Trustees. A Fund may value
securities at fair value where, for example, market quotations are not readily
available, or the value of securities has been materially affected after the
closing of a foreign market.
VOTING PROCEDURES AND CONDUCT
OF THE SHAREHOLDERS' MEETING
This Proxy Statement/Prospectus is furnished in connection with the
solicitation of voting instructions by the management of John Hancock Variable
Series Trust I (the "Trust") for use at the Special Meeting of Shareholders of
the Trust's International Opportunities II Fund. The meeting will be held at the
offices of John Hancock Life Insurance Company ("John Hancock"), 197 Clarendon
Street, Boston, Massachusetts 02117, on December 22, 2000 at 11:00 A.M. Boston
time.
9
<PAGE>
Solicitation of Voting Instructions (i.e., "Proxies")
This solicitation is being made of all shares of the Trust's International
Opportunities II Fund (the "Acquired Fund") that are attributable to the Owners'
interests in John Hancock Variable Life Accounts U, V, and S; John Hancock
Variable Annuity Accounts U, V, JF, H and I; Separate Account IPL-1 of Investors
Partner Life Insurance Company ("IPL"); and John Hancock Mutual Variable Life
Insurance Account UV (collectively, the "Accounts"). The cost of printing and
mailing this Notice and Proxy Statement/Prospectus and the accompanying voting
instructions form will be borne by John Hancock. All other expenses will be
borne by John Hancock. In addition to solicitations by mail, regular employees
of John Hancock may solicit voting instructions in person or by telephone; such
employees will not be compensated for such services. Solicitation materials were
first made available to Owners on or about November __, 2000.
Voting Instructions
Although John Hancock and its subsidiaries, IPL and John Hancock Variable
Life Insurance Company ("JHVLICO"), through the Accounts, legally own all of the
Trust's shares, they will vote all of such shares in accordance with
instructions given by Owners of variable life insurance policies and variable
annuity contracts, as discussed below. For this purpose, the Owner of a variable
annuity contract during the period after annuity payments have commenced is the
annuitant.
Any authorized voting instructions will also be valid for any adjournment
of the meeting and will be revocable only at the direction of the Owner
executing them. If an insufficient number of affirmative votes are obtained to
approve any matter, the meeting may be adjourned to permit the solicitation of
additional votes. Shares will be voted for any such adjournment in the
discretion of those persons named in the voting instructions. Whether a proposal
is approved depends upon whether a sufficient number of votes are cost for the
proposal. Accordingly, an instruction to abstain from voting on any proposal has
the same practical effect as an instruction to vote against that proposal.
Any person giving voting instructions may revoke them at any time prior to
their exercise by submitting a superseding voting instruction form or a notice
of revocation to the Trust. In addition, although mere attendance at the meeting
will not revoke voting instructions, an Owner present at the meeting may
withdraw his/her voting instruction form and vote in person. John Hancock,
JHVLICO and IPL will vote the Acquired Fund's shares in accordance with all
properly executed and unrevoked voting instructions received in time for the
meeting.
John Hancock, JHVLICO and IPL will vote the shares of Acquired Fund held in
their respective Accounts which are attributable to the policies and contracts
in accordance with the voting instructions received from the Owners
participating in that Fund. An Account's shares in the Acquired Fund which are
not attributable to policies or contracts or for which no timely voting
instructions are received will be represented and voted by John Hancock, JHVLICO
or
10
<PAGE>
IPL in the same proportion as the voting instructions which are received from
all Owners participating in the Fund through that Account. Acquired Fund shares
which are not attributable to policies and contracts include shares purchased
with contributions made as "seed money" to the Fund, by John Hancock or JHVLICO.
Please refer to Appendix C to this statement if you wish additional
information about the number of shares of each Fund that are outstanding or that
are attributable to John Hancock, JHVLICO, or IPL (rather than to Owners).
Required Vote
In order for the shareholders to approve the combination of the Funds, the
proposal must receive the favorable vote of more than 50% of the outstanding
Acquired Fund shares or, if less, 67% or more of the shares present or
represented at the meeting.
WHETHER OR NOT YOU EXPECT TO BE PRESENT AT THE MEETING, PLEASE COMPLETE AND
RETURN THE ENCLOSED FORM OF VOTING INSTRUCTIONS. YOU MAY STILL VOTE IN PERSON IF
YOU ATTEND THE MEETING.
11
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CAPITALIZATION OF THE FUNDS
The following table sets forth as of June 30, 2000: (i) the capitalization
of the Acquired Fund, (ii) the capitalization of the Acquiring Fund, and (iii)
the pro forma capitalization of the Acquired Fund as adjusted to give effect to
the combination of the two Funds.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund Pro-Forma Acquired
(International (International Fund and Acquiring
Opportunities II) Opportunities) Fund
----------------- -------------- ----
<S> <C> <C> <C>
Net Assets..................... $ 26,102,000 $102,442,000 $ [ ]
Shares Outstanding............. 2,174,000 7,048,000 [ ]
Net Asset Value Per Share...... $ 12.00 $ 14.53 $ [ ]
</TABLE>
PLAN AND AGREEMENT OF REORGANIZATION
To implement the proposed combination, the Funds have entered into a Plan
and Agreement of Reorganization (the "Plan") that sets forth the terms and
conditions of the transaction. The Plan can be terminated at any time by mutual
agreement of the parties. Also, the Plan provides that the combination is
subject to a prior condition that the shareholders of International
Opportunities II Fund approve the transaction.
INFORMATION FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
This Proxy Statement/Prospectus and the related Statement of Additional
Information do not contain all the information set forth in the registration
statements and the exhibits relating thereto and annual reports that Trust has
filed with the SEC pursuant to the requirements of the Securities Act of 1933
and the Investment Company Act of 1940, to which reference is hereby made.
The Trust and each of its investment portfolios, including the Acquired
Fund and the Acquiring Fund, are subject to the informational requirements of
the Investment Company Act of 1940 and in accordance therewith file reports and
other information with the SEC. Reports, proxy statements, registration
statements and other information filed by those companies (including the Form
N-14 Registration Statement of the Trust relating to the Acquiring Fund of which
this Proxy Statement/Prospectus is a part) may be inspected without charge and
copied at the prescribed rates at the public reference facilities maintained by
the SEC at Room 1014, Judiciary Plaza, 450 Fifth Street, NW, Washington, DC
20549, and at the following regional offices of the SEC: 7 World Trade Center,
Suite 1300, New York, New York 10048; 1401 Brickell Avenue, Suite 200, Miami,
Florida 33131; 500 West Madison Street, 14th Floor,
12
<PAGE>
Chicago, Illinois 60661; 1801 California Street, Suite 4800, Denver, Colorado
80202; and 5670 Wilshire Blvd., 11th Floor, Los Angeles, California 90036. The
SEC maintains a Web site at http://www.sec.gov that contains information
regarding Trust and other registrants that file electronically with the SEC.
13
<PAGE>
International Opportunities Fund
GOAL AND STRATEGY
This is an international stock fund that seeks long-term growth in capital.
The Fund primarily invests in a diversified mix of common stocks of large
established and medium-sized foreign companies located throughout the world,
including developed, newly industrialized, and emerging countries.
The manager determines the distribution among countries and regions by using a
combination of fundamental research and economic analysis, emphasizing:
. prospects for relative economic growth between foreign countries;
. expected levels of inflation;
. government policies influencing business conditions; and
. outlook for currency relationships.
The manager selects stocks that have growth characteristics such as:
. leading market position or technological leadership;
. high return on invested capital;
. healthy balance sheets with relatively low debt;
. strong competitive advantage;
. strength of management; and
. earnings growth and cash flow sufficient to support growing dividends.
The Fund invests:
. in at least 3 different countries; and
. no more than 20% of its assets in emerging market stocks.
Although the Fund may employ foreign currency hedging techniques, the Fund nor-
mally maintains the currency exposure of the underlying equity investments.
The Fund normally invests in 200 to 300 stocks in 15 to 20 countries. The Fund
normally has 10% or less of its assets in cash and cash equivalents.
The Fund also may purchase other types of securities, for example: American
Depository Receipts (ADRs), Global Depository Receipts (GDRs), European Deposi-
tory Receipts (EDRs), and certain derivatives (investments whose value is based
on indices or other securities).
In abnormal market conditions, the Fund may take temporary defensive measures--
such as holding unusually large amounts of cash and cash equivalents--that are
inconsistent with the Fund's primary investment strategy. In taking those mea-
sures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
T. Rowe Price International, Inc.
100 East Pratt Street
Baltimore, Maryland 21202
Managing since 1979
Managed approximately $42 billion in assets at the end of 1999
FUND MANAGERS
Management by Investment Advisory Group overseen by:
David J. L. Warren
-------------------------------
Portfolio Manager of subadviser
Joined subadvisor in 1983
Began career in 1981
John R. Ford
-------------------------------
Portfolio Manager of subadviser
Joined subadvisor in 1982
Began career in 1980
James B. M. Seddon
-------------------------------
Portfolio Manager of subadvisor
Joined subadvisor in 1987
Began career in 1987
Mark Bickford-Smith
-------------------------------
Portfolio Manager of subadvisor
Joined subadvisor in 1995
Began career in 1985
PAST PERFORMANCE
The graph shows how the fund's total return has varied from year to year, while
the table shows performance over time (along with a broad-based market index
for reference). This information may help provide an indication of the fund's
risks and potential rewards. All figures assume dividend reinvestment. Past
performance does not indicate future results. The performance figures below do
not reflect the deduction of fees and charges payable under the variable
contracts. Such fees and charges would cause the investment returns under the
contracts to be less than that shown below.
Year-by-year total returns -- calendar years
[Graph]
1997 1998 1999
1.95% 15.92% 34.01%
Best quarter: up 24.44%, fourth quarter 1999 Worst quarter: down 13.70%, third
quarter 1998
Average annual total returns -- for periods ending 12/31/99(/1/)
<TABLE>
<CAPTION>
Fund Index
<S> <C> <C>
1 year 34.01% 31.79%
Life of fund 15.38% 14.14%
</TABLE>
Index:MSCI Europe, Australia, Far East (EAFE) Index (for periods through Decem-
ber 31, 1998) MSCI All Country World Index, Excluding U.S. (for periods after
December 31, 1998)
(1)Began operations on May 1, 1996.
A-1
<PAGE>
MAIN RISKS
Primary
-------
Foreign Risk: The Fund's foreign securities will pose special risks, due to
limited government regulation, lack of public information, economic, political
and social instability and foreign currency rate fluctuations. Factors such as
lack of liquidity, foreign ownership limits and restrictions on removing cur-
rency also pose special risks. All foreign securities have some degree of for-
eign risk. However, to the extent the Fund invests in emerging market coun-
tries, it will have a significantly higher degree of foreign risk than if it
invested exclusively in developed or newly-industrialized countries.
Market Risk: The value of the securities in the Fund may go down in response
to overall stock or bond market movements. Markets tend to move in cycles,
with periods of rising prices and periods of falling prices. Stocks tend to go
up and down in value more than bonds. If the Fund's investments are concen-
trated in certain sectors, the Fund's performance could be worse than the
overall market.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Secondary
---------
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally con-
sidered more risky than direct equity investments. Also, in a down market,
derivatives could become harder to value or sell at a fair price.
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (Selected data for each share interest outstanding
throughout the period indicated)
The following financial highlights have been audited by Ernst & Young LLP.
<TABLE>
<S> <C> <C> <C> <C>
Period ended December 31: 1996** 1997 1998 1999
Net asset value, beginning of period $ 10.00 $ 10.60 $ 10.63 $ 12.21
Income from investment operations:
Net investment income (loss) 0.07 0.10 0.11 0.10
Net realized and unrealized gain (loss)
on investments* 0.60 0.11 1.57 3.95
Total from investment operations 0.67 0.21 1.68 4.05
Less distributions:
Distributions from net investment income
and capital paid in (0.07) (0.10) (0.10) (0.11)
Distributions from net realized gain on
investments sold -- (0.08) -- (0.94)
Distributions in excess of income,
capital paid in & gains -- -- -- (0.04)
Total distributions (0.07) (0.18) (0.10) (1.09)
Net asset value, end of period $ 10.60 $ 10.63 $ 12.21 $ 15.17
Total investment return 6.72% 1.95% 15.92% 34.01%
Ratios and supplemental data
Net assets, end of period (000s omitted) $17,898 $30,631 $64,250 $79,794
Ratio of expenses to average net assets
(%)*** 1.25% 1.22% 1.16% 1.02%
Ratio of net investment income (loss) to
average net assets (%) 0.87% 0.65% 0.89% 0.77%
Turnover rate (%) 5.46% 21.09% 18.67% 34.02%
</TABLE>
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chases and withdrawals of shares in relation to the fluctuation in market
values of the fund.
** Fund began operations on May 1, 1996.
*** Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.76%, 1.57%, 1.46%, and 1.15%
for the years ended December 31, 1996, 1997, 1998, and 1999, respectively.
A-2
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International
-------------
Opportunities
-------------
Unaudited Period
Ended June 30,
2000............ 15.17 0.06 (0.65) (0.58) (0.05) -- -- --
Year ended
December 31,
1999............ 12.21 0.10 3.95 4.05 (0.11) (0.94) (0.04) --
1998............ 10.63 0.11 1.57 1.68 (0.10) -- -- --
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.60 0.67 (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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International
Opportunities
Unaudited Period
Ended June 30,
2000............ (0.05) 14.53 7,048 (3.84)%(e) 102,442 0.93%(d)(q) 0.89%(d) 22.77%(*)
Year ended
December 31,
1999............ (1.09) 15.17 5,259 34.01% 79,794 1.02%(q) 0.77% 34.02%
1998............ (0.10) 12.21 5,260 15.92% 64,250 1.16%(q) 0.89% 18.67%
1997............ (0.18) 10.63 2,882 1.95% 30,631 1.22%(q) 0.65% 21.09%
Period from May
1, to December
31, 1996 (c).... (0.07) 10.60 1,689 6.72%(e) 17,898 1.25%(d)(q) 0.87%(d) 5.46%(*)
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*) Not annualized.
A-3
<PAGE>
Appendix B
Fund Performance Management, Discussion and Analysis: December 31, 1999
Fund Inception: May 1, 1996
International Opportunities Fund
Rowe Price-Fleming International, Inc. Martin Wade
The excitement driving US technology, telecom and Internet stocks raced
through all international regions in the fourth quarter, pushing the MSCI EAFE
benchmark up 17% (cited in US$). Latin America--not in the MSCI EAFE
benchmark--was the strongest region, up 33%. Performances of other regions
were in a tight band with the Pacific ex-Japan ahead 19%, Europe up 17%, and
Japan 16% higher. The overriding factor propelling markets was enthusiasm for
"new economy" stocks: telecom and Internet-related companies and their
suppliers.
The portfolio returned 34.01%, markedly outperforming the 31.79% return of
its benchmark. Country weighting relative to the benchmark was broadly neutral
for the full year. Our underweight position in Japan subtracted considerable
value, while an overweight position in Latin America added significant value.
Also, underweight positions in the weaker UK and German markets were positive
contributors. The sector which added the most value was overweighting
electronic components. Overweighting the consumer electronics sector and
underweighting utilities and insurance were also positive.
We expect stronger economic growth in Europe. In Japan, declining domestic
demand and capital expenditure together with the potential for a strong yen
are liable to keep the economy weak. Elsewhere in Asia, economic recovery is
well under way and we expect it to continue. We remain cautiously optimistic
about Latin America. Although we believe the valuations of some "new economy"
stocks in international regions have become excessive, we are enthusiastic
about the growth potential of well-managed telecom, Internet-related and
technology businesses. Fortified by a year of improvement, international
economies are poised for better growth with moderate inflation in 2000.
Greater-than-expected progress in restructuring and reform during 1999, as
well as more mergers and acquisitions than anticipated, have enhanced the
earning potential of international companies and have paved the way for
international stock markets to rise in the year ahead.
[GRAPH]
Historical Fund Return
International International
Date Opportunities Benchmark(1) 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
Jul 1999 13,586 13,359
Aug 1999 13,664 13,495
Sep 1999 13,736 13,582
Oct 1999 14,255 14,039
Nov 1999 14,820 15,022
Dec 1999 16,243 16,901
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Nokia Oyj 2.2% 1.0%
Sony Corp. 2.1% 1.1%
Mannesmann AG 2.1% 1.0%
Kyocera Corp. 2.0% 0.5%
Murata Manufacturing Co., Ltd. 1.8% 0.9%
Nippon Telegraph & Telephone Corp. 1.8% 1.0%
National Westminster Bank plc 1.7% 2.4%
Telecom Italia Mobile SpA 1.7% 0.8%
Shell Transport & Trading Co. plc 1.4% 1.7%
NEC Corp. 1.3% 0.8%
Average Annual Total Returns*
------------------------------------------------------------------------------
Intl. Opportunities Intl. Opportunities MorningStar
Fund Benchmark(1) Peer Group+
----------------- ------------------ -----------
1 Year 34.01% 31.79% 44.90%
3 Years 16.56 17.41 18.57
Since Inception (5/1/96) 15.38 14.14 N/A
Top Ten Countries (as of December 31, 1999)
------------------------------------------------------------------------------
% of % of
investments investments
Japan 23.0% Italy 5.4%
United Kingdom 16.1% Switzerland 5.0%
France 10.6% Sweden 3.1%
Netherlands 8.8% Spain 3.0%
Germany 6.7% Hong Kong 2.9%
(1) The International Opportunities Benchmark represents the MSCI EAFE from
May 1996 to December 1998 and the MSCI All Country World Ex. US from
January 1999 to present.
* Total returns are for the period ended December 31, 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.
+ Source: MorningStar, Inc. Data as of 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Foreign Stock investment style.
B-1
<PAGE>
APPENDIX C - Share Ownership Information
As of the close of business on October 31, 2000 (the record date for the
shareholders meeting), there were the following shares outstanding:
Name of Fund Number of Shares
------------ ----------------
International Opportunities............................ [ ]
International Opportunities II......................... [ ]
Each Trust share is entitled to one vote, and fractional votes will be
counted.
The number of Trust shares attributable to each Owner of a variable life
insurance policy ("policy") is determined by dividing, as of the record date of
the shareholders meeting, a policy's cash (or account) value (less any
outstanding indebtedness) in the designated subaccount of the applicable Account
by the net asset value of one share in the corresponding Fund in which the
assets of the subaccount are invested. The number of Trust shares attributable
to each Owner of a variable annuity contract ("contract") is determined by
dividing, as of the record date of the meeting, the value of the "accumulation
shares" under the contract (or for each contract under which annuity payments
have commenced, the equivalent determined by dividing the contract reserves by
the value of one accumulation share) in the designated subaccount of the
applicable Account by the net asset value of one share in the corresponding Fund
in which the assets of the subaccount are invested.
As of the close of business on _____________, 2000, John Hancock, JHVLICO
and IPL had in the aggregate the following numbers of shares representing their
contributions and other amounts in the Accounts that are in excess of the
amounts attributable to policies and contracts.
Percentage of Total
Name of Fund Number of Shares Shares Outstanding
------------ ---------------- ------------------
International Opportunities............. 0.000 0.0%
International Opportunities II.......... [ ] [ ]
[No Owner had voting authority over as much as 5% of either Fund's shares
as of the record date.] Nor did the Trust officers and directors, collectively,
have such authority over as much as 1% of either Fund's shares.
C-1
<PAGE>
INTERNATIONAL OPPORTUNITIES II FUND
(Formerly the Global Equity Fund)
and
INTERNATIONAL OPPORTUNITIES FUND
Each a Separate Investment Fund of
JOHN HANCOCK VARIABLE SERIES TRUST I
197 Clarendon Street
Boston, Massachusetts 02117
Toll Free: 1-800-732-5443
STATEMENT OF ADDITIONAL INFORMATION
Dated: November __, 2000
This Statement of Additional Information ("SAI") is not a prospectus, but you
should read it in conjunction with the Combined Proxy Statement and Prospectus
dated November __, 2000 of International Opportunities II Fund (the "Acquired
Fund") and International Opportunities Fund (the "Acquiring Fund"), for use in
connection with the Special Meeting of Shareholders of the Acquired Fund to be
held on December 22, 2000. The Acquired Fund and the Acquiring Fund are separate
investment funds of John Hancock Variable Series Trust I (the "Trust").
For a free copy of the Combined Proxy Statement and Prospectus, please contact
the Trust at the address or phone number shown above.
This Statement of Additional Information consists of this cover page and the
following described documents, each of which is attached hereto:
Attachment 1. Statement of Additional Information for the Trust dated June
30, 2000; and
Attachment 2. Annual Report of the Trust for the period ended December 31,
1999.
Attachment 3. Semi-annual Report of the Trust for the period ended June 30,
2000.
Attachment 4. Pro-forma financial statements relating to the proposed
combination of the Acquired Fund and the Acquiring Fund.
<PAGE>
JOHN HANCOCK
VARIABLE SERIES TRUST I
STATEMENT OF ADDITIONAL INFORMATION
June 30, 2000
This Statement of Additional Information is not a prospectus. It is
intended that this Statement of Additional Information be read in conjunction
with the Prospectus of John Hancock Variable Series Trust I, dated May 1, 2000
and June 30, 2000. A copy of the Prospectus may be obtained from John Hancock
Variable Series Trust I, John Hancock Place, P.O. Box 111, Boston, Massachusetts
02117, telephone number 1-800-REAL LIFE.
This Statement of Additional Information relates to all thirty-three of the
Trust's current "Funds."
The Trust's Financial Statements and Investment Performance Information
The Trust's financial statements appearing in its Annual Report to contract
holders and the report of Ernst & Young LLP, independent auditors of the Trust,
which appears therein, are incorporated by reference into this Statement of
Additional Information. The information about the total investment returns
achieved by the Trust's various Funds, is also incorporated herein by reference.
No other portions of the Annual Report are incorporated by reference. A free
copy of the Annual Report to contract holders may be obtained by writing to the
address or calling the number above.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page in this
Statement of
Additional
Information
-----------
<S> <C>
The Trust's Financial Statements and Performance Information 1
What Is the Trust? 4
The Trust's Business History 4
The Funds' Investment Activities and Their Risks 5
1. Investing in Money Market Instruments 5
2. Investing in Other Fixed Income Obligations 5
3. Investing in Equity Securities 7
4. Investing in Real Estate Securities 9
5. Investing in Foreign Securities 9
6. Using Forward Exchange Contracts to Manage Currency 11
Exposure
7. Using Options on Currencies to Manage Currency Exposure 12
8. Using Currency Futures Contracts and Options
Thereon to Manage Currency Exposure 12
9. Using Certain Other Derivative Instruments to Manage
Currency Exposure 12
10. Using Foreign Currency Exposure Management Strategies
(General Considerations and Risks) 13
11. Reallocating a Fund's Assets Among Asset Classes 13
12. Adopting a Temporary Defensive Strategy 13
13. Investing With an Index-Based Objective 14
14. Investing on a Non-Diversified Basis 16
15. Using Options (Generally) 16
16. Using Options on Securities in Certain Conservative
Investment Strategies 18
17. Using Financial Futures Contracts, Options on Such Contracts
and Options on Stock Indexes (General Considerations) 18
18. Using Financial Futures, Options Thereon, and Stock Index
Options for Certain Hedging - Type Strategies 20
19. Using Options and Futures in Potentially More Aggressive
Strategies 21
20. Limiting the Funds' Exposure to Certain Futures and Option
Transactions 23
21. Using Other Types of Derivative Instruments 23
22. Investing In Other Investment Companies 25
23. Purchasing "When Issued" Securities and Forward
Commitments 25
24. Short-Term Trading 26
25. Entering Into Repurchase Agreements 26
26. Participating in Joint Trading Accounts 26
27. Lending of Fund Securities 27
28. Using Reverse Repurchase Agreements and Mortgages
"Dollar Rolls" 27
29. Investing in Rule 144A and Illiquid Securities 28
The Funds' Fundamental Investment Restrictions 28
Board of Trustees and Officers of the Trust 31
</TABLE>
2
<PAGE>
TABLE OF CONTENTS - continued
<TABLE>
<CAPTION>
Page in this
Statement of
Additional
Information
-----------
<S> <C>
Investment Advisory Arrangements 33
The Trust's Investment Advisory Arrangements With
John Hancock 33
The Trust's Arrangements With Subadvisers 35
Dollar Amounts of Advisory Fees, Subadvisory Fees, and
Expense Reimbursements 39
Arrangements With Other Service Providers 40
Underwriting and Indemnity Agreement 40
Custody of the Trust's Assets 40
Subadministration Agreement With State Street Bank 41
Independent Auditors 41
Portfolio Transactions and Brokerage Allocation 42
Codes of Personal Conduct 45
Features of the Trust's Shares 45
Shareholder Meetings and Voting Rights 46
Sales and Redemptions of Fund Shares 47
Computing the Funds' Net Asset Value 48
Taxes 49
Information About Fund Performance 49
Legal Matters 50
Reports to Contractholders 50
Appendix A - Corporate Bond Ratings 51
</TABLE>
3
<PAGE>
WHAT IS THE TRUST?
John Hancock Variable Series Trust I, (the "Trust") is an open-end
management investment company. With the exception of the Large Cap Aggressive
Growth, Mid Cap Growth, Global Balanced and Global Bond Funds, each of the Funds
is a "diversified" Fund within the meaning of the Investment Company Act of 1940
(the "Investment Company Act").
Shares of the Trust are currently sold to John Hancock Variable Life
Accounts U, V, and S to support variable life insurance policies issued by John
Hancock Variable Life Insurance Company ("JHVLICO"); John Hancock Variable
Annuity Accounts U and V to support variable annuity contracts issued by John
Hancock Life Insurance Company ("John Hancock"); John Hancock Variable Annuity
Accounts I and JF to support variable annuity contracts issued by JHVLICO; John
Hancock Variable Life Insurance Account UV to support variable life insurance
policies issued by John Hancock; and Investors Partner Life Account IPL-1 to
support variable life insurance policies issued by Investors Partner Life
Insurance Company ("IPL"). It is anticipated that, in the future, Trust shares
may be sold to other separate investment accounts of JHVLICO, John Hancock and
IPL. Each of these separate accounts is hereinafter referred to as a "Separate
Account."
Because the Separate Accounts currently own all of the Trust's
shares, those Separate Accounts (or John Hancock, JHVLICO, and IPL) may be
deemed to control the Trust. John Hancock, JHVLICO and IPL, in turn, are all
directly or indirectly controlled by John Hancock Financial Services, Inc., a
publicly-traded holding company.
The Trust issues a separate series of shares of beneficial interest
for each Fund. Each share issued with respect to a Fund has a pro rata interest
in the net assets of that Fund. The assets of each Fund are charged with the
liabilities of that Fund and a proportionate share of the general liabilities of
the Trust.
THE TRUST'S BUSINESS HISTORY
The Trust is, in part, a successor to three Separate Accounts of
JHVLICO, as well as the six Separate Accounts of John Hancock described below.
On March 28, 1986, all of the investment assets and related liabilities of the
Variable Life Stock, Bond, and Money Market Accounts were transferred to what
are now the Growth & Income, Active Bond and Money Market Funds of the Trust,
respectively, in exchange for shares of those Funds.
On February 20, 1987, all of the investment assets and related
liabilities of six Variable Annuity Stock, Bond and Money Market Accounts were
transferred to what are now the Growth & Income, Active Bond and Money Market
Funds of the Trust, respectively, in exchange for shares of these Funds.
The Trust itself was incorporated on September 23, 1985, under the
laws of the State of Maryland and was reorganized as a Massachusetts business
trust effective April 29, 1988.
Over the years, several Funds have been re-named as follows:
Year of
Current Fund Name Prior Name(s) Change
----------------- ------------- ------
International Opportunities II Global Equity 2000
Active Bond Sovereign Bond 2000
Bond 1996
Global Balanced International Balanced 2000
Global Bond Strategic Bond 1999
Growth & Income Stock 1996
International Equity Index International Equities 1998
International 1995
Global 1994
4
<PAGE>
Year of
Current Fund Name - continued Prior Name(s) - continued Change
----------------------------- ------------------------- ------
Large Cap Growth Select Stock 1995
Short-Term Bond Short-Term U.S. Government 1998
Small/Mid Cap Growth Diversified Mid Cap Growth 1999
Special Opportunities 1998
THE FUNDS' INVESTMENT ACTIVITIES
AND THEIR RISKS
The different investment activities of the several Funds will affect
both their investment returns and the nature and degree of risks to which they
are exposed. Sections 1. - 29. below describe many (but not all) of these
investment activities and risks.
1. Investing in Money Market Instruments
The Money Market Fund invests exclusively in "money market"
instruments; all the other Funds may invest in these instruments to some extent.
These are high quality, short-term fixed income obligations. Because of their
nature, money market instruments generally do not carry significant risks of
loss. The principal risk is that a Fund's return on money market instruments
will be less than it would have earned on a riskier investment.
2. Investing in Other Fixed Income Obligations
The following Funds invested primarily in non-money market fixed
income (i.e., "debt") securities: the Short-Term Bond, Bond Index, Active Bond,
Core Bond, Global Bond, and High Yield Bond Funds. The Managed, Aggressive
Balanced and Global Balanced Funds can vary their holdings of these securities
within a broad range. All the other Funds (except the Money Market Fund) may
from time to time invest in non-money market debt to some extent.
Various types of risk associated with these securities are discussed
in the balance of this Section 2.
Interest rate risk: In general, debt securities with longer
maturities than money market instruments have exposure to interest rate risk.
Changes in generally prevailing market interest rates alter a debt security's
market value and introduce volatility into the rate of return of a Fund that
invests in such securities. When prevailing interest rates go up, the market
value of debt securities tends to go down and vice versa. This sensitivity of
the market value of a debt security to changes in interest rates is generally
related to the "duration" of the instrument. The market value of a shorter-term
fixed income security is generally less sensitive to interest rate moves than
that of a longer-term security. For example, the interest rate risk of the
Short-Term Bond Fund, although moderate, is below that of traditional
intermediate or long-term bond portfolios.
Credit risk: The value of a fixed income security may also change as
a result of market perceptions regarding its credit risk: i.e., the ability of
the borrower to repay its debts. The market value of a fixed income security can
fall when the market perceives the borrower to be less credit worthy.
Conversely, the market value of a fixed income security can increase due to its
borrower being perceived as financially stronger. All Funds that invest in
non-money market debt securities may have some exposure to credit risk.
Even some U.S. Government obligations have a degree of credit risk.
"U.S. Government obligations" are bills, certificates of indebtedness, notes and
bonds issued or guaranteed as to principal or interest by the United States or
by agencies or authorities controlled or supervised by and acting as
instrumentalities of the U.S. Government and established under the authority
granted by Congress. Some obligations of U.S. Government
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agencies, authorities, and other instrumentalities are supported by the full
faith and credit of the U.S. Treasury; others by the right of the issuer to
borrow from the Treasury; and others only by the credit of the issuing agency,
authority, or other instrumentality. These latter types of obligations,
therefore, do have a degree of credit risk. U.S. Government obligations are used
most in the Bond Index, Active Bond and Global Bond Funds. All of the other
Funds may also invest in U.S. Government obligations to some extent.
Securities having one of the four highest rating categories for debt
securities as defined by Moody's investors Services, Inc. (Aaa, Aa, A, or Baa)
or Standard and Poor's Corporation (AAA, AA, A, or BBB) or, if unrated,
determined to be of comparable quality by the subadviser, are referred to as
"investment grade." The meanings of such ratings are set forth in Appendix A to
this Statement of Additional Information. Lower-rated bonds have more credit
risk than higher rated bonds.
Risk of lower-quality instruments: High-yield bonds (or "junk" bonds)
are debt securities rated below "investment grade" as defined above. The value
of these lower rated securities generally is more subject to credit risk than is
the case for higher rated securities, and their values tend to respond more to
changes in market perceptions regarding their credit risk.
Investments in companies issuing high yield securities are considered
to be more speculative than higher quality instruments. As such, these
securities typically pay a higher interest rate than investment grade
securities.
Issuers of high yield securities are typically in weak financial
health, and their ability to pay back principal and interest on the bonds they
issue is uncertain. Some of these issuers may be in default or bankruptcy.
Compared with issuers of investment-grade bonds, they are more likely to
encounter financial difficulties and to be materially affected by these
difficulties when they do encounter them.
High yield bond markets may react strongly to adverse news about an
issuer or the economy, or to the perception or expectations of adverse news.
These debt securities may also have less liquid markets than higher rated
securities.
Judgment plays a greater role in valuing higher yield securities than
in the case of other securities for which more extensive quotations and
last-sale information are available. Adverse publicity and changing investor
perceptions may affect the ability of outside pricing services used by a Fund to
value its portfolio securities, and the ability of the Fund to dispose of its
lower-rated bonds.
The market prices of high yield securities may decline significantly
in periods of general economic difficulty, which may follow periods of rising
interest rates. During an economic downturn or a prolonged period of risking
interest rates, the ability of issuers of lower-rated debt to service their
payment obligations, meet projected goals, or obtain additional financing may be
impaired. In that case, a Fund may find it necessary, at its own expense or in
conjunction with others, to pursue litigation or otherwise exercise its rights
as a security holder to seek to protect the interests of security holders, if it
determines this to be in the interest of Fund investors. The 1980s saw a
dramatic increase in the use of high yield securities to finance highly
leveraged corporate acquisitions and restructurings. Past experience may not
provide an accurate indication of future performance of high yield securities,
especially during periods of economic recession. In fact, from 1989 to 1991, the
percentage of high yield securities that defaulted rose significantly above
prior levels.
All Funds (other than the Money Market Fund) that invest in debt
securities may at times have some exposure to high yield securities. The High
Yield Bond Fund intends to invest primarily in these securities. The other Funds
most likely to invest a significant portion of their assets in high yield
securities are the Short-Term Bond, Active Bond, and Core Bond Funds. The
Managed, Aggressive Balanced, Global Bond and Global Balanced Funds may also
invest in high yield securities to some extent. In contrast, the Bond Index Fund
will not invest in debt securities that are not at least investment grade at the
time of purchase.
Although not customarily referred to as "high yield" securities or
"junk bonds," debt securities that fall in the lowest rating within the
investment grade category are considered medium grade securities that have some
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speculative characteristics. Accordingly, to a lesser degree, they may present
the same risks discussed above with respect to high yield securities.
The considerations discussed above for lower-rated debt securities
also are applicable to lower quality unrated debt instruments of all types,
including loans and other direct indebtedness of businesses with poor credit
standing. Unrated debt instruments are not necessarily of lower quality than
rated securities, but they may not be attractive to as many buyers.
Prepayment/Call risk: Prepayment risk is the risk that the obligor on
a debt security may repay or "call" the debt before it is due. Most mortgage
backed, asset backed, other public bond debt securities and 144A securities that
a Fund might own are exposed to this risk. U.S. Government securities have
minimal exposure to this risk. Prepayment/call is most likely to occur when
interest rates have declined and a borrower can refinance the debt at a lower
interest rate level. Generally, a Fund reinvests the proceeds resulting from
prepayments in a lower yielding instrument. This results in a decrease in the
Fund's current yield. The values of securities that are subject to
prepayment/call risk also tend to increase less in response to declining
interest rates and decrease more in response to increasing interest rates than
would the value of otherwise similar securities that do not have prepayment or
"call" features.
All Funds that invest in debt securities (other than the Money Market
Fund) may at times have some exposure to prepayment/call risk. The Funds most
likely to invest a significant portion of their assets in debt securities with
prepayment/call features are the Short-Term Bond, Core Bond, Bond Index, Active
Bond, Global Bond and High Yield Bond Funds. The Managed, Aggressive Balanced,
and Global Balanced Funds may also invest in these securities.
Risks of "zero coupon" instruments: All of the Funds may, in varying
degrees, invest in debt instruments that provide for payment of interest at the
maturity date of the instrument (or payment of interest in the form of
additional securities), rather than payment of interest in cash periodically
over the life of the instrument. The values of such instruments tend to respond
more to changes in interest rates than do otherwise comparable debt obligations
that provide for periodic interest payments. The Funds most likely to invest a
significant amount of their assets in instruments that are subject to this
volatility risk are the Managed, Aggressive Balanced, Real Estate Equity, Global
Balanced, Short-Term Bond, Core Bond, Bond Index, Active Bond, Global Bond, and
High Yield Bond Funds. However, all Funds that invest in debt securities may at
times have some exposure to this risk.
3. Investing in Equity Securities
All of the Funds intend to invest to some degree in common stock or
other equity securities, except for the Short-Term Bond, Core Bond, Bond Index,
Active Bond, Global Bond, and Money Market Funds. All of the Funds that invest
in equity securities expect to make such securities their primary investment
(except for the Managed, High Yield Bond and Global Balanced Funds, which may
nevertheless do so in the discretion of their subadvisers). Though investing in
equity securities, the Managed, Aggressive Balanced, and Global Balanced Funds
also expect, under normal conditions, to invest a substantial amount of their
assets in debt obligations.
General risks of investing in equity securities are discussed in the
balance of this Section 3.
Equity risk: Investments in common stock or other equity securities
historically have offered a higher rate of return than money market instruments
or longer term debt securities. However, the risks associated with equity
securities also tends to be higher, because the investment performance of equity
securities depends upon factors which are difficult to predict. The fundamental
risk associated with any equity portfolio is the risk that the value of the
investments it holds might decrease in value. Equity security values may
fluctuate in response to the activities of an individual company or in response
to general market, interest rate, and/or economic conditions.
Market capitalization risk: Another indication of the relative risk
of a common stock investment is the size of the company, which is typically
defined by reference to its "market capitalization." Market capitalization is
computed by multiplying current market price of a share of the company's stock
by the total number of its shares outstanding.
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Investing in larger capitalization companies generally involves a
lesser degree of risk than investing in smaller capitalization companies.
Conversely, investing in the equity securities of smaller companies involves
greater risks and potential rewards than investing in larger, more established
companies. Small capitalization companies, in particular, often have limited
product lines, markets or financial resources, and they may depend upon a small
group of inexperienced managers. Investments in such companies can be both more
volatile and more speculative. These securities may have limited marketability
and are subject to more abrupt or erratic market movements than securities of
larger companies or the market in general.
Three capitalization levels are currently used by the Trust: large,
medium ("mid"), and small. Each of these capitalization levels will be defined
by reference to the Russell 3000(R) Index. The Russell 3000(R) Index Index is a
broad market index and is representative of the U.S. stock markets with a total
capitalization of $13.4 trillion at the end of 1999.1
. Large cap: Companies having a capitalization within the range of
the 300 largest companies in the Russell 3000(R) Index will be
considered to be large capitalization ("large cap") companies. At
the end of 1999, each of the largest 300 companies in the Russell
3000(R) Index had a capitalization greater than $ 7.9 billion.
. Mid cap: Companies having a capitalization within the range of
the 250 to 1000 largest companies in the Russell 3000(R) Index
will be considered to be "mid cap." At the end of 1999, such mid
cap companies had capitalizations ranging from $1.4 billion to
$9.7 billion.
. Small cap: Companies having a capitalization within the range of
the remaining companies in the Russell 3000(R) Index will be
considered to be small capitalization ("small cap") companies. At
the end of 1999, none of these smallest companies in the Russell
3000(R) Index had a market capitalization of more than $1.4
billion.
The above parameters for large cap, mid cap and small cap are adjusted at the
end of each calendar quarter to reflect changes in the market capitalization of
the Russell 3000(R) Index.
The equity securities of the Managed, Aggressive Balanced, Growth &
Income, Equity Index, Large Cap Value, American Leaders Large Cap Value, Large
Cap Value CORE, Large Cap Growth, Large Cap Aggressive Growth, International
Opportunities II, Global Balanced and International Equity Index Funds are
generally expected to represent primarily companies that qualify as large cap
issuers. These Funds also may invest in the equity securities of companies that
qualify as small and mid cap issuers.
The equity securities of the Large/Mid Cap Value, International
Equity and International Opportunities Funds are generally expected to represent
primarily large and mid cap issuers. These Funds also may invest in the equity
securities of companies that qualify as small cap issuers.
The equity securities of the Mid Cap Value, Mid Cap Growth,
Fundamental Mid Cap Growth, and Mid Cap Blend Funds are generally expected to
represent primarily companies that qualify as mid cap issuers. These Funds also
may invest in the equity securities of companies that qualify as small or large
cap issuers.
The equity securities of the Small/Mid Cap Value, Small/Mid Cap
Growth, and Small/Mid Cap CORE Funds are generally expected to represent
companies that are small cap and mid cap issuers. These Funds also may invest in
the equity securities of companies that qualify as large cap issuers.
--------------------------
1 The Russell 3000(R) Index is a service mark of Frank Russell Company, which
does not sponsor and is not in any way affiliated with the Trust. Inclusion in
the index in no way implies an opinion as to its attractiveness or
appropriateness as an investment.
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The Small Cap Value and Small Cap Growth Funds are generally expected
to invest primarily in equity securities of companies that qualify as small cap
issuers. Although these Funds also may invest significant amounts in the equity
securities of companies that qualify as mid cap issuers, it is expected that
they would rarely invest in the equity securities of companies that qualify only
as large cap issuers.
The Emerging Markets Equity Fund has broad latitude to invest in
companies of any size.
The Real Estate Equity Fund invests in real estate equity securities
that have historically been primarily mid cap, but it may also invest in small
cap or large cap equity securities.
4. Investing in Real Estate Securities
The Real Estate Equity Fund invests primarily in companies with
activities related to the real estate industry, such as real estate investment
trusts ("REITs") that own commercial and multifamily residential real estate,
real estate operating companies ("REOCs") that derive the majority of their
revenue, income or asset value from real estate and other companies engaged in
non-real estate businesses but whose real estate holdings are significant in
relation to the market value of their common stock.
The securities purchased will be principally common stock (and
securities convertible into or with rights to purchase common stock) but a
portion of the Fund may be invested in preferred stock. The Fund may also invest
in commercial mortgage securities (debt obligations secured by commercial
property), collateralized mortgage obligations (mortgage pass through securities
secured by commercial mortgage pools) and master limited partnerships from time
to time, but does not do so on the date of this Statement of Additional
Information.
In addition to the Real Estate Equity Fund, all of the other Funds
(except for the Money Market Fund) may have some exposure to real estate risks
through investments in companies engaged in real estate related businesses or
investments in debt instruments secured by real estate.
Risks of real estate securities: Generally speaking, real estate
securities may be affected by risks similar to those resulting from the direct
ownership of real estate, as well as by market risks due to changes in interest
rates and by the overall volatility of the equity markets. The market value of
shares in equity real estate investment trusts and commercial property
companies, in particular, is heavily dependent upon the value of their
underlying properties. Overbuilding, declines in local or regional economic
conditions, financial difficulties on the part of major tenants and increases in
real estate taxes and operating expenses all could decrease the value of the
real estate investments.
5. Investing in Foreign Securities
Investments in foreign securities may be made in a
foreign-denominated security, or in the form of American Depositary Receipts
("ADRs"), European Depositary Receipts ("EDRs") or other securities representing
underlying shares of foreign securities. ADRs, EDRs and other securities
representing underlying shares of foreign securities may not necessarily be
denominated in the same currency as the securities into which they may be
converted, but rather in the currency of the market in which they are traded.
ADRs are receipts, typically issued by an American bank or trust company, which
evidence ownership of underlying securities issued by a foreign corporation.
EDRs are receipts issued in Europe by banks or depositories which evidence a
similar ownership arrangement. Generally, ADRs are designed for use in U.S.
securities markets; while EDRs are designed for use in European securities
markets.
Investments in debt securities issued by foreign issuers may be made directly in
foreign-denominated debt instruments or in the form of U.S. dollar denominated
debt securities issued by foreign issuers and publicly traded in the United
States ("Yankees") or in Europe ("Eurobonds").
The International Equity Index, International Equity, International
Opportunities, International Opportunities II, Emerging Markets Equity, Global
Bond and Global Balanced Funds invest primarily in foreign securities, including
foreign-denominated securities. To a lesser extent, the Managed, Aggressive
Balanced High Yield Bond, Core Bond, Large
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Cap Value and Mid Cap Growth Funds may also invest in foreign securities,
including foreign-denominated securities. The Large Cap Growth, Small Cap
Growth, Mid Cap Blend, American Leaders Large Cap Value, Large Cap Value CORE,
Large/Mid Cap Value, Mid Cap Value, Small/Mid Cap Growth, Large Cap Aggressive
Growth, Small/Mid Cap CORE, Small/Mid Cap Value, Real Estate Equity, Growth &
Income, Small Cap Value, and Equity Index Funds may invest in ADRs and other
U.S. dollar denominated foreign securities to a limited extent. The Short-Term
Bond, Bond Index and Active Bond Funds may invest in foreign debt securities
only if denominated in U.S. dollars (i.e., Yankees and Eurobonds).
The Emerging Markets Equity Fund invests primarily in developing countries
commonly known as "emerging markets." To a lesser extent, the Global Balanced,
International Equity Index, International Equity, International Opportunities,
International Opportunities II, Core Bond, Bond Index, Global Bond, Active Bond,
and High Yield Bond Funds may also invest in emerging markets.
Risks of investing in foreign securities are discussed in the
paragraphs that follow:
Currency risks: When a Fund buys foreign-issued securities, it
usually must pay for those securities in the local currency. Therefore, the Fund
must convert funds into the local currency to the extent necessary for this
purpose. Similarly, when a Fund sells a foreign security, it may receive payment
in the local currency. Therefore, if the Fund does not wish to continue to hold
that currency, it must enter into a transaction disposing of it.
In these ways, therefore, a Fund may temporarily hold foreign
currency in order to facilitate the purchase and sale of foreign securities.
This exposes the fund to the risk that the foreign currency's value could, while
the Fund was temporarily holding that currency, decline relative to the U.S.
dollar. This could result in a loss to the Fund, because the Fund's assets and
shares are valued in U.S. dollars. On the other hand, the Fund could experience
gains if the foreign currency's value, relative to the U.S. dollar, increases
during the period when the Fund holds that currency.
More fundamentally, however, because the Fund values its assets and
shares in U.S. dollars, the Fund's gains and/or losses on investments that are
denominated or traded in foreign currencies will depend in part on changes in
the value of that currency relative to the U.S. dollar. This exposes the Fund to
the risk of loss if that foreign currency loses value, as well as the
possibility of gains if that currency gains value, relative to the U.S. dollar.
The Funds may (but are not required to) employ certain strategies to
limit their risks or otherwise manage their exposure to foreign currencies. Such
currency management techniques, as well as the risks that those techniques
themselves present, are discussed in Sections 6. - 10. below.
Also, a risk exists that a foreign country may have or implement
restrictions on transactions in its currency that prevent a Fund from
effectively managing or reducing its exposure to that currency, even after the
Fund has disposed of any securities denominated or traded in that currency.
The risks associated with foreign currency conversions are not
present in investments in Yankees and Eurobonds because these debt securities
are U. S. dollar denominated.
Political and economic risk: Foreign securities often are subject to
heightened political and economic risks, particularly in emerging markets or
other underdeveloped or developing countries, which may have relatively unstable
governments and economies based on only a few industries. Foreign governments
may take over the assets or operations of a company, may impose additional
taxes, or may place limits on the removal of the Fund's assets from that
country. However, investments in foreign securities also offer the opportunity
to diversify holdings and to invest in economies whose growth may outpace that
of the United States.
Regulatory risk: Generally, there is less government supervision of
foreign markets. Foreign issuers generally are not subject to uniform
accounting, auditing, and financial reporting standards and practices applicable
to domestic issuers. There may be less publicly available information about
foreign issuers than domestic issuers. These risks may be greater in emerging
markets or other underdeveloped or developing countries.
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Market risk: Foreign securities markets, particularly those of
emerging markets or other underdeveloped or developing countries, may be less
liquid and more volatile than domestic markets. Certain markets may require
payment for securities a Fund purchases before delivery of these securities to
the Fund, and delays may be encountered in settling securities transactions. In
some foreign markets, there may be limited protection against failures by other
parties to complete their transactions with a Fund. There may be limited legal
recourse against an issuer in the event of a default on a debt instrument held
by a Fund.
Transaction costs: Transaction costs of buying and selling foreign
securities, including brokerage, tax, and custody costs, are generally higher
than those involved in domestic transactions. This is particularly true for
investments in emerging markets, or other underdeveloped or developing
countries.
6. Using Forward Exchange Contracts to Manage Currency Exposure
Transaction hedging and portfolio hedging: When a Fund anticipates
having to purchase or sell a foreign currency to facilitate a foreign securities
transaction, it may wish to "lock in" the current exchange rate for that
currency (vis-a-vis the U.S. dollar) and thus avoid (in whole or in part)
exposure to further changes in that rate that could occur prior to when the
purchase or sale proceeds are actually paid. This is called "transaction
hedging."
A Fund can do transaction hedging by purchasing or selling foreign
currencies in the "spot" (i.e., cash) market. Alternatively, the following Funds
may use "forward" currency foreign exchange purchase or sale contracts for
transaction hedging: the Managed, Aggressive Balanced, Large Cap Value, Mid Cap
Growth, Global Balanced, International Equity Index, International Equity,
International Opportunities, International Opportunities II, Emerging Markets
Equity, Global Bond, Core Bond and High Yield Bond Funds. In a forward exchange
contract, the Fund purchases or sells a specific amount of foreign currency, at
a price set and time set in the contract, which may be any fixed number of days
in the future.
These same Funds may also use forward foreign exchange contracts to
reduce their exposure to changes (relative to the U.S. dollar) in the value of a
foreign currency during a period of time when the Fund owns securities that are
denominated, exposed to or traded in that currency. This is called "portfolio
hedging." Except as described in the paragraph immediately below for certain
funds, the Funds may not engage in portfolio hedging with respect to the
currency of a particular country to an extent greater than the aggregate market
value (at the time of establishing the hedge) of securities held by that Fund
which are denominated, exposed to or traded in that particular foreign currency.
The Funds may or may not attempt to hedge some or all of their foreign portfolio
positions. Rather, they will enter into such transactions only to the extent, if
any, deemed appropriate by their subadvisers. Furthermore, no Fund will use
forward foreign currency exchange contracts for the purpose of leveraging the
Fund's currency exposure.
For purposes of transaction hedging or portfolio hedging, the
Managed, Aggressive Balanced, Mid Cap Growth, Global Balanced, Global Bond, Core
Bond, International Equity Index, International Equity, Emerging Markets Equity,
International Opportunities, and International Opportunities II Funds may use
forward exchange contracts on a "proxy" currency, instead of the currency being
hedged. A proxy currency is one that the subadviser believes will bear a close
relationship to the currency being hedged and believes will approximately equal
the performance of such currency relative to the U.S. dollar. Nevertheless,
changes in the value of the currency being hedged may not correspond to changes
in the value of the proxy currency as expected, which could result in the
currency hedge being more favorable or less favorable to the Fund than the
subadviser had expected.
Other techniques for managing currency exposure: The Managed,
Aggressive Balanced, Mid Cap Growth, Global Balanced, International Equity
Index, International Equity, International Opportunities, International
Opportunities II, Emerging Markets Equity, Core Bond and Global Bond Funds may
use additional techniques when their subadvisers believe that the currency of a
particular country may suffer a significant decline against the U.S. dollar or
against another currency. In that case, these Funds may enter into a forward
currency contract to sell, for a fixed amount of U.S. dollars or other
appropriate currency, the amount of foreign currency approximating the value of
some or all of the Fund's securities denominated in, traded in, or exposed to
such foreign currency. The currency contract may call for the Fund to receive a
currency other than U.S. dollars, for example, if such other currency is
believed to be undervalued or necessary to bring the Fund's overall exposure to
various currencies into a more
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<PAGE>
desirable balance. For similar purposes, the Managed, Aggressive Balanced,
Global Balanced, Emerging Markets Equity, International Opportunities,
International Opportunities II, International Equity, Mid Cap Growth, Core Bond
and Global Bond Funds may also enter into contracts to purchase, for a fixed
amount of U.S. dollars, or other appropriate currency, an amount of foreign
currency corresponding to the value of some of the Fund's securities.
Asset segregation requirements for forward exchange contracts: A Fund
may "cover" its obligations under outstanding forward currency sale contracts by
maintaining portfolio securities denominated, exposed to or traded in the
currency of such contracts or of an appropriate proxy currency. To the extent a
Fund does not thus cover all of its forward currency sales positions with its
portfolio securities, or if it has outstanding any forward currency purchase
contracts, the Funds' custodian will segregate cash or liquid assets in a
separate account of the Fund in an amount at all times at least equal to the
value of the Fund's net obligation with respect to forward contracts in a
particular currency or, in the case of the Global Balanced Fund only, the value
of that Fund's net "out of the money" obligation (If any) with respect to all of
the Fund's outstanding forward currency contracts. If the value of the portfolio
securities used to cover a position or the value of the assets in the segregated
account declines, the Fund will find additional "cover" or additional cash or
liquid assets will be placed in the account so that the value of the account
will at least equal the required amount described in the preceding sentence.
7. Using Options on Currencies to Manage Currency Exposure
The Managed, Aggressive Balanced, Mid Cap Growth, Global Balanced,
International Equity Index, International Equity, International Opportunities,
International Opportunities II, Emerging Markets Equity, Global Bond, and High
Yield Bond Funds may also purchase and write put and call options on foreign
currencies for the same purposes as those Funds could use forward foreign
exchange contracts (as discussed in Section 6. above). This could include
options traded on U.S. and foreign exchanges, as well as those traded in
"over-the-counter" markets.
The characteristics and risks of these currency option transactions
are similar to those discussed in Sections 15. - 16. below with respect to put
and call options on securities.
Call options on foreign currencies written by a Fund will be
"covered," which means that the Fund will own at all times at least an equal
amount of, or an offsetting position in, the underlying foreign currency.
Asset segregation requirement for currency put options written by a
Fund: With respect to put options on foreign currencies written by a Fund, the
Fund will establish a segregated account with its custodian bank consisting of
cash, U.S. Government securities or other high grade liquid debt securities in
an amount equal at all times to the amount the Fund would be required to deliver
upon exercise of the put.
8. Using Currency Futures Contracts and Options Thereon to Manage
Currency Exposure.
Any Fund may use currency futures contracts and options thereon for
the same purposes and to the same extent as that Fund could use forward foreign
exchange contracts (as discussed in Section 6. above). The characteristics and
risks of such futures and options transactions are similar to those discussed in
Sections 16. - 19. below for other transactions in futures contracts and options
thereon. All transactions in currency futures and options thereon also would be
subject to the applicable limitations in Section 20. below.
9. Using Certain Other Derivative Instruments to Manage Currency
Exposure
As discussed in Section 21. below, several of the Funds may use
currency "swaps," "caps," "floors," and "collars" for the same purposes as those
Funds could use forward foreign exchange contracts (as discussed in Section 6.
above). The characteristics and risks of such "derivative" transactions, as
discussed in Section 21., are generally also applicable when such instruments
are used for currency management purposes.
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10. Using Foreign Currency Exposure Management Strategies (General
Considerations and Risks)
The foreign currency management techniques discussed in Sections
6.- 9. above do not eliminate fluctuations in the prices of portfolio securities
or prevent losses if the prices of such securities decline. The Funds are not
obligated to try to hedge against any change in the value of any currency. Even
if a Fund wished to do so, there is no assurance that market conditions would be
such as to make such hedging possible.
Moreover, even where a Fund establishes positions designed to manage
its foreign currency exposure, there is no assurance that this will be
beneficial to the Fund. Such positions may cause a Fund to forego gains that it
otherwise could have achieved or incur costs and losses that it would not
otherwise have incurred. (In general the cost to the Funds of engaging in
foreign currency management transactions varies with such factors as the
currency involved, the type and duration of the instrument being used for this
purpose, and the market conditions then prevailing.) It is entirely possible,
therefore, that any effort to manage a Fund's currency exposure could have a
negative effect on the Fund's investment performance.
In general, the more foreign securities a given Fund invests in, the
greater its currency management activities are likely to be. Also, the Managed,
Aggressive Balanced, Mid Cap Growth, Global Balanced, International Equity
Index, International Equity, International Opportunities, International
Opportunities II, Emerging Markets Equity and Global Bond Funds may use certain
of these same types of instruments in currency management strategies that expose
those Funds to currencies other than the U.S. dollar. Although this would not be
done for the purpose of "leveraging" the Fund's overall exposure to fluctuations
in currency values, such strategies could expose those Funds to greater risks of
loss and greater volatility than they otherwise would experience.
11. Reallocating a Fund's Assets Among Asset Classes
The continual reallocation of assets among the major asset classes
(e.g., stocks, bonds, and cash) involves the risk that the subadviser may reduce
the Fund's holdings in an asset class whose value increases unexpectedly, or may
increase the Fund's holdings in an asset class just prior to that asset class
experiencing a loss of value. The Managed, Aggressive Balanced, and Global
Balanced Funds tend to exercise broad discretion in reallocating assets across
asset classes. The Global Bond Fund and the International Opportunities II Fund
intend to exercise discretion to reallocate assets across domestic and
international asset classes.
All of the other Funds, with the exception of the Money Market Fund,
generally allow the subadviser some latitude to allocate across asset classes.
Nevertheless, this latitude is expected to be exercised to a lesser degree than
in the case of the Managed, Aggressive Balanced, and Global Balanced Funds.
12. Adopting a Temporary Defensive Strategy
All of the Funds, except the Money Market Fund, may (but are not
required to) adopt a defensive investment posture if the subadviser believes the
investment environment for the Fund is negative. Such a defensive posture would
involve reallocating some or all of a Fund's assets in a manner different from
that contemplated by its primary investment objective and strategies.
Most of the Funds are not limited as to the types of investments they
could use temporarily for defensive purposes. Thus, for example, a small cap
equity Fund might temporarily invest in stocks of larger cap companies or in
high quality, short term debt securities. A bond Fund might shorten maturities
or tighten its investment quality parameters. An international Fund might, for
example, limit the countries it would invest in or temporarily invest only in
high quality, short-term debt securities in the United States.
There can be no assurance that the transaction costs and lost
investment opportunities will not outweigh any benefits to a Fund that attempts
to adopt a defensive strategy.
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13. Investing With an Index-Based Objective
The Equity Index, International Equity Index, and Bond Index Funds
expect to invest substantially all of their assets in equity or debt securities
within their investment objectives and policies at all times. Accordingly, these
Funds may carry more risk in times of declining markets than Funds that are more
likely to adopt a defensive investment posture in such circumstances by
reallocating their assets in a manner different from that contemplated by their
primary investment objective and strategies.
Investments in the Equity Index, International Equity Index, and Bond
Index Funds each involve the risk that the Fund will be unable to match the
performance of its corresponding target index. Each Fund's ability to do so is
affected by (a) the size and timing of cash flows into and out of that Fund, (b)
the level of the Fund's expenses, including commissions and "spreads," on its
portfolio transactions, other portfolio management expenses, and other operating
expenses, and (c) the degree of success of the techniques employed by the Fund's
subadviser. Further, if the size of a Fund limits the number of issues that the
Fund can purchase, or that size is relatively small in relation to cash flows,
there is a greater possibility that the Fund may be unable to match the
performance of the corresponding target index.
The S&P 500 Index: The S&P 500 is an index that is constructed by the
Standard & Poor's Corporation ("Standard & Poor's" or "S&P"), which chooses
stocks on the basis of market values and industry diversification. Most of the
largest 500 companies listed on U.S. stock exchanges are included in the index.
Additional stocks that are not among the 500 largest stocks, by market value,
may be included in the S&P 500 for diversification purposes. The index is
capitalization weighted -- that is, stocks with a larger capitalization (shares
outstanding times current price) have a greater weight in the index. Selection
of a stock for inclusion in the S&P 500 Index in no way implies an opinion by
S&P as to its attractiveness as an investment.
The Trust and the insurance products supported by the Trust are not
sponsored, endorsed, sold or promoted by Standard & Poor's. Standard & Poor's
makes no representation or warranty, express or implied, to the owners of the
insurance products supported by the Trust or to any member of the public
regarding the advisability of investing in the Trust or such insurance products.
Standard & Poor's only relationship to the Trust is the licensing of Standard &
Poor's "marks" and the S&P 500 Index, which is determined, composed and
calculated by Standard & Poor's without regard to the Fund or the Trust.
"Standard & Poor's(R)," "S&P(R) ," "S&P 500(R)," "Standard & Poor's 500," and
"500" are trademarks of McGraw-Hill, Inc. and have been licensed for use by the
Trust. In determining, composing, or calculating the S&P 500 Index, S&P has no
obligation to take into consideration the needs of the Trust or those of the
owners of the insurance products supported by the Trust. S&P is not responsible
for and has not participated in the determination of the prices and amount of
the insurance products supported by the Trust or the timing of the issuance or
sale of such products or in the determination or calculation of the equations by
which such products are to be converted into cash. S&P has no obligation or
liability in connection with the administration, marketing, or trading of such
products.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE
S&P 500 INDEX OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR
ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, EXPRESS
OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE TRUST, OWNERS OF THE PRODUCTS
SUPPORTED BY THE TRUST, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P
500 INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO EXPRESS OR IMPLIED
WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX OR ANY DATA
INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P
HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES
(INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
The Lehman Brothers Government/Corporate and Aggregate Bond Indexes:
The Lehman Brothers Government/Corporate Index (the "Government/Corporate
Index") is intended to measure the performance of the domestic, fixed-rate
investment grade debt market. The Government/Corporate Index is composed of (1)
all public obligations of the U.S. Government, its agencies and
instrumentalities (excluding "flower" bonds and pass-through
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issues, such as GNMA certificates) and (2) all publicly issued, fixed-rate, non-
convertible, investment grade, U.S. dollar-denominated, SEC-registered
obligations of domestic corporations, foreign governments and supranational
organizations. Securities in the index generally have at least $150 million par
amount outstanding and at least 1 year remaining to maturity.
The Lehman Brothers Aggregate Bond Index (the "Aggregate Bond Index")
covers the U.S. investment grade fixed-rate bond market, including government
and corporate securities, agency mortgage pass-through securities, and asset-
backed securities. The Aggregate Bond Index covers those securities in the
Government/Corporate Index, plus those covered by the Lehman Mortgage-Backed
Securities Index ("MBS Index") the Lehman Commercial Mortgage-Backed Securities
(ERISA Eligible) Index ("CMBS (ERISA Eligible) Index"), and the Lehman Asset-
Backed Securities Index ("ABS Index"). The MBS Index covers fixed-rate
securities backed by mortgage pools of the Government National Mortgage
Association, the Federal Home Loan Mortgage Association, and the Federal
National Mortgage Association. The CMBS (ERISA Eligible) Index covers ERISA-
Eligible CMBS securities. The ABS Index covers several subsectors -- including
credit and charge cards, auto, utilities and home equity loans -- and includes
pass-through, "bullet," and controlled amortization structures.
All non-government issues in the Government/Corporate Index and the
Aggregate Bond Index are rated at least Baa by Moody's Investors Service, Inc.
("Moody's") or, if unrated by Moody's, BBB by Standard & Poor's Ratings Group
("Standard & Poor's").
All securities in the Government/Corporate Index and the Aggregate
Bond Index issued by non-U.S. entities are denominated in U.S. dollars.
Lehman Brothers, Inc. is neither a sponsor of nor in any other way
affiliated with the Trust or the insurance products supported by the Trust.
Inclusion of a security in the Government/Corporate or Aggregate Bond Indexes in
no way implies an opinion of Lehman Brothers, Inc. as to its attractiveness or
appropriateness as an investment.
The MSCI EAFE GDP Index: The MSCI EAFE GDP Index weights countries
such that a country with a larger GDP will have a greater weight in the index.
Stocks within those countries are capitalization weighted; that is, stocks with
a larger capitalization have a greater weight in the index.
The Trust and the insurance products supported by the Trust are not
sponsored, endorsed, sold or promoted by Morgan Stanley Capital International
("MSCI"). MSCI makes no representation or warranty, express or implied, to the
owners of the Trust, or any member of the public regarding the advisability of
investing in funds generally or in the Trust or any Fund particularly, or the
ability of the MSCI EAFE GDP Index to track general stock market performance.
MSCI is the licensor of certain trademarks, service marks and trade names of
MSCI and of the MSCI EAFE GDP Index, which is determined, composed and
calculated by MSCI without regard to the Trust. "Morgan Stanley Capital
International" is a service mark of Morgan Stanley & Co., Incorporated, that has
been licensed for use by the Trust.
MSCI has no obligation to take the needs of the Trust or the owners
of insurance products supported by the Trust into consideration in determining,
composing or calculating the MSCI EAFE GDP Index. MSCI is not responsible for
and has not participated in the determination of the prices or amounts of
insurance products supported by the Trust or the timing of the issuance and sale
of such products, or in the determination or calculation of the equations by
which such products are convertible into cash. MSCI has no obligation or
liability to owners of the Trust or of the insurance products supported by the
Trust in connection with the administration, marketing or trading of any Fund of
the Trust.
ALTHOUGH MSCI OBTAINS INFORMATION FOR INCLUSION IN OR FOR USE IN THE
CALCULATION OF THE INDEX FROM SOURCES WHICH MSCI CONSIDERS RELIABLE, NEITHER
MSCI NOR ANY OTHER PARTY GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE
INDEX OR ANY DATA INCLUDED THEREIN. NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY
WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY OWNERS OF THE
TRUST, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA
INCLUDED THEREIN. NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY EXPRESS OR IMPLIED
WARRANTIES, AND MSCI HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF
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MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDEX OR
ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
SHALL MSCI OR ANY OTHER PARTY HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT,
SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS)
EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
14. Investing on a Non-Diversified Basis
The Large Cap Aggressive Growth, Mid Cap Growth and Global Balanced
Funds are "non-diversified Funds." Non-diversified Funds are less restricted in
the extent to which they may invest more than 5% of their assets in any issuer
or purchase more than 10% of the voting securities of any issuer. Because a
relatively high percentage of a non-diversified Fund's assets may be invested in
the obligations of a limited number of issuers, the value of that Fund's shares
may be more volatile and more susceptible to any single economic, political, or
regulatory event, or to credit and market risks associated with a single issuer,
than would the shares of a diversified Fund.
15. Using Options (Generally)
Most of the Funds may, in varying degrees, use options on the
following (which, for simplicity, may be referred to as the "subject" of an
option): currencies, securities, equity indexes, interest rate indexes, and
financial futures contracts. This Section 15. discusses certain characteristics
and risks that are generally common to all of these types of options. The Funds'
use of specific types is discussed in Sections [7. - 8. above and 16. - 20.
below], including characteristics and risks peculiar to those types of options
or the Funds' use of them.
Purchasing "call" options: If a Fund (or anyone else) "purchases" a
"call" option, it pays a purchase price (often called a "premium") plus, in most
cases, a commission to the broker through whom the purchase was made. In return
the Fund (or other purchaser) has the right (but not the obligation), at or
before a specified future time (called the "expiration date"), to acquire a
specified amount of the option's subject (or the economic equivalent thereof) at
a specified price (called the "strike price" or "exercise price"). If the
purchaser of an option decides to exercise this right, we say the option has
been "exercised." If an option is never exercised before its expiration date, it
expires unexercised.
A Fund (or other purchasers of a call option) may profit in one of
two ways. First, the Fund may be able to exercise the call option at a date when
the value of the option's subject exceeds the purchase price of the option
(including any brokerage commission) plus the exercise price. Whether the Fund
will be able to do this depends on how favorable those prices were and how the
value of the option's subject has changed since the option was purchased.
Secondly, a Fund may profit from purchasing an option if the Fund is
able to sell the option (unexercised) at a profit sometime before its expiration
date. (As a practical matter, such a sale would generally be accomplished by
having the Fund sell (e.g., "write") an option identical to the option it owns,
thereby "netting out" the Fund's exposure to the position.) Whether such a
profit will be possible, of course depends on whether the then market price for
the option (less any commission payable on the sale) exceeds the option's
purchase price (including any related commission). In this regard, one of the
general risks of purchasing options is that, for a variety of reasons, the
market price of an option usually does not vary in the same way or to the same
extent as the value of the option's subject varies. Therefore, a Fund can lose
money purchasing a call option, even if the value of the option's subject
increases.
The basic risk in purchasing an option is that, if the Fund never
exercises or sells the option at a profit, the Fund will lose the entire
purchase price of the option (plus any related commissions). That is the maximum
amount the Fund could lose, however.
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Selling or "writing" call options: Selling an option is commonly
referred to as "writing" an option. If the Fund (or anyone else) sells
("writes") a call option, it receives the premium (less any commission) paid by
the option's purchaser and has the obligation to sell the option's subject to
the purchaser at the exercise price if the purchaser exercises the option before
it expires.
The Fund can make a profit writing a call option if the purchaser
fails to exercise the option (which usually would happen only if the value of
the option's subject were below the exercise price). In this case, the option's
purchase price (net of any commissions) would be a profit to the Fund.
Alternatively, a Fund could profit from writing a call option if it
is able to subsequently purchase an identical option that would close out the
Fund's position at a profit. This could be done only if the market price of the
option then exceeded the Fund's initial purchase price by an amount greater than
any commissions payable by the Fund on the purchase or sale transactions. There
is a risk, however, that a Fund may be unable to do this, even if the value of
the call option's subject has declined. This is because, as noted above, the
value of an option does not vary in identical fashion to the value of the
option's subject.
The risk of writing a call option is that, if the value of the
option's subject exceeds the option's exercise price, the option is almost sure
to be exercised. In that case, the Fund will suffer a loss to the extent that
the premium it received for writing the option (net of any commissions), plus
the exercise price it receives are less than the value of the option's subject
at the time of exercise. Therefore, the higher the value of the option's subject
rises, the greater the Fund's potential loss on an option it has written. A Fund
could cut off its further exposure in such a case by purchasing an identical
call option that would close out its position. The Fund would, however, probably
realize a loss on the transaction, because the purchase price it would have to
pay for that call option would probably have increased to reflect the increasing
value of the option's subject.
Writing options on a "covered" basis. One way for a Fund to limit its
risk exposure on call options it has written is to "cover." A call option may be
considered "covered" if, as long as the option is outstanding, the writer
(seller) of the option owns assets that are identical to, or have the same or
similar investment characteristics to, the option's subject. In such a case, if
the value of the option's subject increases, the losses that the Fund will incur
on the call option it has written will tend to be offset by gains that Fund
earns on the assets it is holding to "cover" the option.
Naturally, the more similar the assets held by the fund are to the
option's subject, the more assurance the Fund will have that its losses on call
options it has written will be "covered." How similar those assets must be
varies depending on the Fund and the type of covered option involved. More
details in this regard can be found in Sections 16. - 19. below.
Purchasing and selling (writing) "put" options: A "put" option is the
same as a call option, except that a Fund (or any other person) that purchases a
put option, by paying the purchase price ("premium") has the right to sell
(rather than buy) the option's subject for a stated exercise ("strike") price.
Conversely, the seller (writer) of a put option receives the premium (net of any
commissions) but has the obligation to purchase the option's subject at its
exercise price if the option is exercised.
Thus, if a Fund purchases a put option, its maximum potential loss
would equal the purchase price (plus any commissions thereon). On the other
hand, if a Fund sells (writes) a put option, the Fund could continue to
experience continuing losses while the option is outstanding, to the extent that
the value of the subject of the option continues to decline. If the subject lost
its value entirely, the Fund's maximum loss would equal the exercise price less
the premium (net of any commissions) that the Fund received initially for
writing the option. Because of this risk exposure, a Fund that writes a put
option may seek to "cover" that option with other assets that it owns. More
details about this can be found in Section 16. - 19. below.
Accounting for options: The value of any option that the Fund has
purchased, and the amount of the Fund's obligation under any outstanding option
it has written, will vary as market prices change. These variations are
reflected daily in the Fund's calculation of its net asset value, so that such
value always reflects the estimated impact of current market conditions on all
of the Fund's option positions.
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16. Using Options on Securities in Certain Conservative Investment
Strategies
Except as otherwise noted below, the general discussion of options in
Section 15. above applies to this Section 16.
Each of the Funds may write covered call options that are traded on
national securities exchanges, except for the Growth & Income, Real Estate
Equity, and Money Market Funds. By "covered" we mean that the Fund will actually
own the securities that are the subject of the option.
The same Funds may purchase "protective" put options that are traded
on national securities exchanges. By "protective", we mean that the Fund will
actually own the securities that are the subject of the option. If the market
value of such underlying securities remains above the option's exercise price,
the Fund will, in effect, lose the premium it has paid for the option. The Fund,
however, avoids the risk of loss on the underlying securities, to the extent
that the market value of the underlying securities falls below the exercise
price of the put option.
Liquidity risk: The Funds intend to write and purchase options only
if the subadviser believes that adequate liquidity exists. If for any reason a
Fund cannot, however, close out its open option position when deemed advisable,
the Fund's investment performance could be adversely affected.
17. Using Financial Futures Contracts, Options on Such Contracts and
Options on Stock Indexes (General Considerations)
Most of the Funds may, in varying degrees use financial futures
contracts, options on such futures and options on stock indexes. This Section 17
discusses certain characteristics and risks that generally pertain to these
instruments, regardless of the specific use to which they are put. The Funds'
specific uses are discussed in Sections 7. - 8. above and 18. - 20. below,
including specific risks related to those risks.
Financial futures contracts: Financial futures contracts consist of
interest rate futures contracts, stock index futures contracts, and currency
futures contracts.
An interest rate futures contract is a contract to buy or sell
specified debt securities at a future time for a fixed price. A public market
currently exists for interest rate futures contracts on United States Treasury
Bills, United States Treasury Notes, bank certificates of deposit, and various
other domestic or foreign instruments and indexes.
Stock index futures contracts bind purchaser and seller to delivery
at a future date specified in the contract of a cash amount equal to a multiple
of the difference between the value of a specified stock index on that date and
settlement price specified by the contract. That is, the seller of the futures
contract must pay and the purchaser would receive a multiple of any excess of
the value of the index over the settlement price, and the purchaser must pay and
the seller would receive a multiple of any excess of the settlement price over
the value of the index. A public market currently exists for stock index futures
contracts based on the Standard & Poor's 500 Stock Index, the Standard & Poor's
Midcap Index, the New York Stock Exchange Composite Index, the Value Line Stock
Index, and various other domestic or foreign indexes.
A currency futures contract is a contract to buy or sell a specified
amount of another currency at a future time for a fixed price.
Options on financial futures contracts: The writer of an option on a
financial futures contract agrees to assume a position in such financial futures
contract having a specified price, if the purchaser exercises the option and
thereby assumes the opposite position in the financial futures contract. If the
option purchaser would assume the sale side of the futures contract upon
exercise of the option, the option is commonly called a "put" option. If the
option writer would assume the sale side, it is commonly called a "call" option.
As with other types of options, the party that writes the option receives a
premium for doing so, and the party that purchases an option pays a premium
therefor. However, there is no exercise (or strike) price, as such. Rather, if
the value of the futures contract moves
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against the writer of the option, so that the option is (or is likely to be)
exercised, the option writer, in effect, has the obligation to pay those losses.
More specifically, an option written by a Fund on a financial futures
contract requires the Fund to pay any amount by which the fluctuating price of
the underlying debt instrument or index exceeds (in the case of a call option)
or is less than (in the case of a put option) the price specified in the futures
contract to which the option relates. Therefore, if the price of the debt
instrument or stock index on which the futures contract is based increases (in
the case of a call option written by a Fund) or decreases (in the case of a put
option written by a Fund), the Fund may incur losses that exceed the amount of
the premium received by the Fund for writing the option.
Stock index options: After payment of a specified premium at the time
a stock index option is entered into, the purchaser of a stock index call option
obtains the right to receive a sum of money upon exercise of the option equal to
a multiple of the excess of a specified stock index on the exercise date over
the exercise or "strike" price specified by the option. The purchaser of a put
option obtains the right to receive a sum of money upon exercise of the option
equal to a multiple of any excess of the strike price over the stock index. The
writer of a call or put stock index option receives a premium, but has the
obligation, upon exercise of the option, to pay a multiple of the difference
between the index and the strike price. Thus, if the price of the stock index on
which an index option is based increases (in the case of a call option written
by a Fund) or decreases (in the case of a put option written by a Fund), the
Fund may incur losses that exceed the premium it received for writing the
option.
Stock indexes for which options are currently traded include the
Standard & Poor's 100 and Standard & Poor's 500 Indexes.
Margin requirements for futures and options: When futures contracts
are traded, both buyer and seller are required to post an initial margin of cash
or U.S. Treasury Bills equaling as much as 5 to 10 percent or more of the
contract settlement price. The nature of the margin requirements in futures
transactions differs from traditional margin payments made in securities
transactions in that margins for futures contracts do not involve the borrowing
of funds by the customer to finance the transaction. Instead, a customer's
margin on a futures contract represents a good faith deposit securing the
customer's contractual obligations under the futures contract. If the market
moves against the Trust, so that a Fund has a net loss on its outstanding
futures contracts for a given day, the Fund generally will be required to post
additional margin to that extent. The margin deposit is returned, assuming the
Trust's obligations have been met, when the futures contract is terminated.
Similar margin requirements will apply in connection with any
transactions in which a Fund writes any options. This includes options on
indexes and futures contracts, as well as other types of options.
Certain risks: Financial futures, options thereon, and stock index
options, if used by a Fund, will in most cases be based on securities or stock
indexes the components of which are not identical to the portfolio securities
owned or intended to be acquired by the Fund and in connection with which such
instruments are used. Furthermore, due to supply and demand imbalances and other
market factors, the price movements of financial futures, options thereon, and
stock index options do not necessarily correspond exactly to the price movements
of the securities, currencies, or stock index on which such instruments are
based. These factors increase the difficulty of implementing a successful
strategy using futures and options contracts.
The Funds generally will not take delivery of debt instruments
pursuant to purchasing an interest rate futures contract, nor make a delivery of
debt instruments pursuant to selling an interest rate futures contract. Nor will
the Funds necessarily take delivery of or deliver currencies in connection with
currency futures contracts. Instead, a Fund will more typically close out such
futures positions by entering into closing futures contract transactions.
Similarly, a Fund may wish to close out an option on a futures contract or an
option on an index by entering into an offsetting position in those instruments.
Generally speaking, entering into closing transactions such as
described immediately above would not affect gains and losses of the Fund
resulting from market action prior to such closing transactions. Moreover, there
is a risk that, at the time a Fund wishes to enter into such a closing
transaction, trading in futures or options could be interrupted, for example,
because of supply and demand imbalances arising from a lack of either buyers or
sellers.
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The futures and options exchanges also may suspend trading after the price has
risen or fallen more than the maximum amount specified by the exchange. Exercise
of options could also be restricted or delayed because of regulatory
restrictions or other factors. Although the subadvisers will seek to avoid
situations where these factors would be likely to cause a problem for the Trust,
in some cases they could adversely affect particular Fund transactions in these
instruments.
Asset segregation requirement for certain futures and options
positions: A Fund will maintain at all times in a segregated account with its
custodian cash or high-grade liquid debt securities at least equal to the sum of
the purchase prices of all of the Fund's open futures purchase positions, plus
the current value of the securities underlying all of the Fund's open futures
sales positions that are maintained for purposes other than bona fide hedging,
plus the exercise price of all outstanding put options on futures contracts
written by the Fund, minus the amount of margin deposits with respect thereto as
marked to market each day.
18. Using Financial Futures, Options Thereon, and Stock Index Options for
Certain Hedging-Type Strategies
This Section 18. should be read against the background of the
generally applicable information about options, futures and related risks that
appears in Sections 15. and 17. above.
This Section 18. covers all Funds, except the Growth & Income, Real
Estate Equity, and Money Market Funds. Specifically, with those exceptions, all
Funds may use exchange-traded financial futures contracts thereon, and, except
for the Active Bond Fun, they also may purchase exchange-traded put or call
options on stock indexes, for the purposes discussed below.
It should be emphasized that none of the Funds is required to use any
of these strategies, and doing so is not a principal investment strategy of any
of the Portfolios. Therefore, it should not be assumed that any particular Fund
will ever necessarily use any of these strategies to a significant extent.
Hedging with financial futures contracts against market changes: All
Funds covered by this Section 18. (except the Equity Index Fund) may use
financial futures contracts as a hedge to protect against possible changes in
interest rates and security prices.
Thus, for example, to hedge against the possibility that interest
rates or other factors may result in a general decline in prices of equity
securities of a type owned by them, these Funds (other than the Equity Index
Fund) may sell stock index futures contracts. Similarly, to hedge against the
possibility that increases in interest rates may adversely affect the market
values of debt securities held by them, these Funds (other than the Equity Index
and Large Cap Value CORE Funds) may enter into interest rate futures sale
contracts.
Establishing market exposure and managing cash flow with financial
futures contracts: On the other hand, purchasing futures contracts could enable
a Fund to take the approximate economic equivalent of a substantial position in
bonds or equity securities. Thus, the following Funds may purchase and sell
stock index and interest rate futures to maintain market exposure and manage
cash flows: the Managed, Aggressive Balanced, Equity Index, American Leaders
Large Cap Value, Large Cap Value CORE, Large Cap Growth, Large Cap Aggressive
Growth, Large/Mid Cap Value, Mid Cap Growth, Fundamental Mid Cap Growth, Mid Cap
Blend, Mid Cap Value, Small/Mid Cap CORE, Small/Mid Cap Value, Small/Mid Cap
Growth, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, International Opportunities, International Opportunities
II, Emerging Market Equity, Short-Term Bond, Core Bond, Bond Index, Active Bond,
Global Bond, and High Yield Bond Funds.
Managing foreign currency exposure with foreign currency futures
contracts: Any Fund may use foreign currency futures contracts to the same
extent and in the same manner as it is authorized to use forward foreign
exchange contracts in Section 6. above.
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Using options on futures contracts and options on stock indexes
for the foregoing purposes: Each Fund that this Section 18. authorizes to use
financial futures contracts also may purchase options on appropriate financial
futures contracts and (except for the Active Bond Fund) stock indexes for any
purpose and to the extent that it could use financial futures contracts as
discussed above.
Limitations on "long" positions for certain Funds: The Large Cap
Value CORE Portfolio may not purchase financial futures contracts, except for
currency futures. The following limitation applies to the Managed, Aggressive
Balanced, Equity Index, Large Cap Aggressive Growth, Large/Mid Cap Value
Fundamental Mid Cap Growth and Mid Cap Blend Funds. These Funds may purchase
financial futures contracts, purchase call options on financial futures options
or purchase call options on equity indexes only if (a) they intend to purchase
securities (or, in the case of the Aggressive Balanced, Equity Index, Large Cap
Aggressive Growth, Large/Mid Cap Value, Fundamental Mid Cap Growth, and Mid Cap
Blend Funds, wish to establish or maintain market exposure to securities that
the Fund would be authorized to purchase) and (b) the values of such securities
are expected to change by approximately the same amount as the value of the
futures or options contracts being used to hedge them.
Risks of hedging-type strategies: If, after a Fund establishes a
hedge position, the value of the securities or currencies being hedged moves in
the opposite direction from that anticipated, the Fund as a whole will perform
less well than it would have had it not entered into the futures or option
transaction.
The success of the Funds in using hedging-type techniques depends,
among other things, on the subadviser's ability to predict the direction and
volatility of price movements in the futures or options markets, as well as the
securities markets and, in some cases, currency markets, and on the subadviser's
ability to select the proper type, time and duration of option or futures
contracts. Certain of the subadvisers have limited experience in utilizing these
hedging-type techniques, and there can be no assurance that these techniques
will produce their intended result.
The prices of the futures and options contracts used for hedging-type
strategies may not vary as contemplated in relation to changes in the price of
the securities or currencies being hedged. Accordingly, there is a risk that
transactions in these instruments, if used by a Fund, may not in fact offset the
impact of adverse market developments in the manner or to the extent
contemplated or that such transactions may result in losses to the Fund which
would not be offset by gains with respect to corresponding portfolio securities
owned or to be purchased by that Fund. Hedging-type transactions also may be
more, rather than less, favorable to a Fund than originally anticipated.
19. Using Options and Futures In Potentially More Aggressive Strategies
This Section 19. should be read against the background of the
generally applicable information about options, futures, and related risks that
appears in Section 15., 17. and 18. above.
This Section 19. applies only to the Managed, Aggressive Balanced,
Large Cap Value CORE, Mid Cap Growth, Small/Mid Cap CORE, Small/Mid Cap Growth,
Small Cap Growth, Global Balanced, International Equity Index, International
Equity, International Opportunities II, Emerging Markets Equity, Short-Term
Bond, Bond Index, Global Bond, and High Yield Bond Funds. The option and futures
strategies discussed in this Section are in addition to those discussed for
those (and other) Funds in Sections 7., 8., 16., and 18. above.
Writing certain types of options: The Managed, Aggressive Balanced,
Large Cap Value CORE, Mid Cap Growth, Small/Mid Cap CORE, , Small/Mid Cap
Growth, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, International Opportunities II, Emerging Markets Equity,
Short-Term Bond, Bond Index, Global Bond, and High Yield Bond Funds may write
"covered" put options on securities. In addition, the Managed, Aggressive
Balanced, Large Cap Value CORE, Mid Cap Growth, Small/Mid Cap CORE, Small/Mid
Cap Growth, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, International Opportunities II, Short-Term Bond, Bond
Index, Global Bond, and High Yield Bond Funds may also write covered put and
call options on indexes composed of securities in which the Fund may invest.
Such index options may be written in any manner that the Fund in question is
authorized to write options on specific securities it owns.
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A put option written by a Fund will be deemed to be "covered" if
the Fund maintains in a segregated account with its custodian cash, U.S.
Government securities or other high-grade liquid debt securities with a value at
all times at least equal to the exercise price of the put. Put and call options
written by Funds will also be considered to be "covered" to the extent that the
Fund's liabilities under these options are fully offset by its rights under put
or call options purchased by the Fund.
Purchasing certain types of options. The Managed, Aggressive
Balanced, Large Cap Value CORE, Mid Cap Growth, Small/Mid Cap CORE, Small Cap
Growth, Global Balanced, International Equity Index, International Equity,
International Opportunities II, Emerging Markets Equity, Global Bond, and High
Yield Bond Funds may purchase put and call options on securities in which it may
invest, without specific restriction as to the circumstances of such purchases.
Similarly, each of these Funds, as well as the Small/Mid Cap Growth and Short-
Term Bond Funds, may purchase put and call options on indexes composed of
securities in which the Fund may invest, without specific restriction on the
circumstances of such purchases.
Option purchases of the type covered in the preceding paragraph would
have to be consistent with the Fund's investment objective. Also, each of the
above-listed Funds is subject to the limitation on certain futures and options
transactions described in Section 20.
Using options traded over-the-counter or on foreign exchanges: The
Managed, Aggressive Balanced, Large Cap Value CORE, Mid Cap Growth, Small/Mid
Cap CORE, Small/Mid Cap Growth, Small Cap Growth, Global Balanced, International
Equity Index, International Equity, International Opportunities II, Emerging
Markets Equity, Short-Term Bond, Bond Index, Global Bond, and High Yield Bond
Funds may also use options on securities and options on indexes that are traded
"over-the-counter" or on foreign exchanges, in any manner that they would be
permitted to use such options that were traded on domestic exchanges. These
Funds will engage in over-the-counter options only with member banks of the
Federal Reserve System and primary dealers in U.S. Government securities. These
Funds will treat over-the-counter options they have purchased and assets used to
cover over-the-counter options they have written as illiquid securities.
However, with respect to options written with primary dealers in U.S. Government
securities pursuant to an agreement requiring a closing purchase transaction at
a formula price, the amount of illiquid securities may be calculated with
reference to the formula price.
Using futures contracts and options on futures contracts for certain
purposes: The Managed, Aggressive Balanced, American Leaders Large Cap Value,
Large Cap Value CORE, Mid Cap Growth, Small/Mid Cap CORE, Small/Mid Cap Value,
Small/Mid Cap Growth, Small Cap Growth, Global Balanced, International Equity
Index, International Equity, International Opportunities II, Emerging Markets
Equity, Short-Term Bond, Bond Index, Active Bond, Core Bond, Global Bond, and
High Yield Bond Funds may use futures contracts on securities or on market
indexes, and options on such futures contracts, without specific restriction on
the purposes of such transactions. Nevertheless, such transactions would have to
be consistent with the Fund's investment objective.
There is no specific overall limit on the amount of the assets these
Funds may devote to financial futures contracts and options thereon, even if
such contracts are not limited to hedging-type transactions. Nevertheless
(except through the purchase of options, as discussed below) the Funds will not
use these techniques for purpose of "leveraging" the Fund's exposure to the
securities underlying any futures contract or option thereon or its exposure to
foreign currencies. Although this limitation does not apply to options on
futures contracts that are purchased by a Fund, the total amount of premiums
paid by a Fund for such options that are not used for bona fide hedging is
(pursuant to the restrictions set forth in Section 20. below) limited to 5% of
the Fund's net assets.
Risks of potentially more aggressive options and futures strategies:
As outlined above, the Funds discussed in this Section 19. may engage in types
of options and futures transactions not permitted to the other Funds, including
over-the-counter options, writing covered put options, and more types of
transactions that are not solely for hedging-type purposes or that other may be
more speculative. Also, even as to options and futures transactions of a type
that are permitted to other Funds, these Funds are, in certain cases, not as
limited regarding the amount of their assets that may be so employed.
Accordingly, to the extent that these Funds exercise their broader authority to
enter into options and futures transactions, they may incur greater risks than
the other Funds.
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20. Limiting the Funds' Exposure to Certain Futures and Option
Transactions.
The Equity Index, Large Cap Value, Large Cap Growth, Mid Cap Value,
Small Cap Value, and International Opportunities Funds will not enter into any
financial futures contract or purchase any option thereon, if, immediately
thereafter, the total amount of its assets required by commodities exchanges to
be on deposit as margin to secure its obligations under futures contracts, plus
the amount of premiums paid by the Fund for outstanding options to purchase
futures contracts, exceeds 5% of the market value of the Fund's total assets.
The following limitation applies to all of the Funds that can invest
in financial futures contracts or options thereon, other than the Equity Index,
Large Cap Value, Large Cap Growth, Mid Cap Value, Small Cap Value and
International Opportunities Funds: No such other Fund may purchase, sell or
write futures contracts or options thereon other than for "bonafide" hedging
purposes (as defined by the U.S. Commodity Futures Trading Commission) if
immediately thereafter the Fund's initial margin deposits on such outstanding
non-hedging futures and options positions, plus the amount of premiums paid by
the Fund for such outstanding non-hedging options on futures contracts, exceeds
5% of the market value of the Fund's net assets. For the purpose of this
calculation, any amount by which an option is "in the money" at the time of its
purchase is excluded from the premium paid therefor.
Nor will any of the Large Cap Value, Large Cap Value CORE, Large Cap
Growth, Mid Cap Value, Small Cap Value or International Equity Funds enter into
any transaction in interest rate, stock index or currency futures, or options
thereon, or stock index options, if the value of the securities being hedged by
all of such instruments would immediately thereafter be more than one-third of
the value of the Fund's total assets. Nor will any Fund consider as "hedging"
any transaction that is intended to leverage the Fund's investment exposure to
the type of security being hedged or to leverage the Fund's currency exposure.
21. Using Other Types of Derivative Instruments
The Global Balanced, International Equity Index, and High Yield Bond
Funds may engage in "swap" transactions (specifically interest rate, currency
and index swaps) and in the purchase or sale of related "caps," "floors," or
"collars." The Emerging Markets Equity Fund may also engage in those
transactions and, in addition, may engage in equity swap transactions. The
Managed and Aggressive Balanced Funds may each invest up to 10% of the
respective Fund's total assets (at the time the swap is entered into) in
currency and equity swaps for hedging purposes or for currency management
strategies as discussed in Section 6 above. The International Equity Fund may
invest up to 10% of its total assets (at the time the swap is entered into) in
currency and equity swaps, although it will use currency swaps only for hedging
purposes. The Global Bond Fund may also use these derivative instruments, but
only for currency management strategies as discussed in Section 6. above.
The nature and risks of these types of transactions are discussed
further in the paragraphs that follow.
Interest rate swaps: In a typical interest rate swap agreement, one
party agrees to make payments equal to a floating interest rate on a specified
amount (the "notional amount") in return for payments equal to a fixed interest
rate on the same amount for a specified period. If a swap agreement provides for
payments in different currencies, the parties might agree to exchange the
notional amount as well.
Provided the contract so permits, a Fund will usually enter into
swaps on a "net" basis: that is, the two payment streams are netted out in a
cash settlement on the payment date or dates specified in the instrument, with
the Fund receiving or paying, as the case may be, only the net amount of the two
payments.
Interest rate caps, floors and collars: The purchaser of an interest
rate cap or floor, upon payment of a fee, has the right to receive payments (and
the seller of the cap is obligated to make payments) to the extent a specified
interest rate exceeds (in the case of a cap) or is less than (in the case of a
floor) a specified level over a specified period of time or at specified dates.
The purchaser of an interest rate collar, upon payment of a fee, has the right
to receive payments (and the seller of the collar is obligated to make payments)
to the extent that a specified interest rate falls outside an agreed upon range
over a specified period of time or at specified dates.
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Currency, index and equity swaps, caps, floors and collars:
Currency, index, and equity swaps, caps, floors, and collars are similar to
those for interest rates described in the two preceding paragraphs above, except
that, rather than being determined by variations in specified interest rates,
the obligations of the parties are determined by variations in a specified
currency, interest rate index, or equity index, as the case may be.
Risks and purposes of these other derivatives: The amount of a Fund's
potential gain or loss on any swap transaction is not subject to any fixed
limit. Nor is there any fixed limit on the Fund's potential loss if it sells a
cap, floor or collar. If a Fund buys a cap, floor or collar, however, the Fund's
potential loss is limited to the amount of the fee that it has paid.
Swaps, caps, floors and collars tend to be more volatile than many
other types of investments. Nevertheless, a Fund will use these techniques only
as a risk management tool and not for purposes of leveraging the Fund's market
exposure or its exposure to changing interest rates, security values or currency
values. Rather, a Fund will use these transactions only to preserve a return or
spread on a particular investment or portion of its investments, to protect
against currency fluctuations, as a duration management technique, to protect
against any increase in the price of securities the Fund anticipates purchasing
at a later date, or to gain exposure to certain markets in the most economical
way possible. Nor will a Fund sell interest rate caps, floors or collars if it
does not own securities providing the interest that the Fund may be required to
pay under such derivative instruments. Finally, of course, a Fund may use these
derivative instruments only in ways that are consistent with its investment
objective.
The use of swaps, caps, floors and collars involves investment
techniques and risks different from those associated with other portfolio
security transactions. If the subadviser is incorrect in its forecasts of market
values, interest rates, currency rates and other applicable factors, the
investment performance of a Fund will be less favorable than if these techniques
had not been used.
These instruments are typically not traded on exchanges. Accordingly,
there is a heightened risk that the other party to certain of these instruments
will not perform its obligations to the Fund. None of the Funds will enter into
any swap, cap, floor, or collar, unless the other party to the transaction is
deemed creditworthy by the subadviser.
There also is a risk that a Fund may be unable to enter into
offsetting positions to terminate its exposure or liquidate its investment under
certain of these instruments when it wishes to do so. Such occurrences could
result in losses to the Fund. In recent years, the swap market has become
relatively liquid. Caps, floors and collars are more recent innovations for
which standardized documentation has not yet been fully developed and, for that
reason, they are less liquid than swaps.
The liquidity of swaps, caps, floors and collars will be determined
by the subadviser based on various factors, including (1) the frequency of
trades and quotations, (2) the number of dealers and prospective purchasers in
the marketplace, (3) dealer undertakings to make a market, (4) the nature of the
instrument (including any demand or tender features) and (5) the nature of the
marketplace for trades (including the ability to assign or offset a Fund's
rights and obligations relating to the investment). Such determinations will
govern whether the instrument will be deemed within the Fund's 15% restriction
on investments in securities that are not readily marketable.
Segregation requirements for these derivatives: Each Fund will
maintain cash or liquid high grade debt securities in a segregated account with
its custodian in an amount sufficient at all times to cover its current
obligations under swaps, caps, floors and collars. If a Fund enters into a swap
agreement on a net basis, it will segregate assets with a daily value at least
equal to the excess, if any, of the Fund's accrued obligations under the swap
agreement over the accrued amount the Fund is entitled to receive under the
agreement. If a Fund enters into a swap agreement on other than a net basis, or
sells a cap, floor or collar, it will segregate assets with a daily value at
least equal to the full amount of the Fund's accrued obligations under the
agreement.
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22. Investing in Other Investment Companies
Each Fund may invest up to 10% of its total assets in shares of other
investment companies investing exclusively in securities in which that Fund may
otherwise invest. As a shareholder in an investment company, a Fund would bear
its ratable share of that investment company's expenses, including advisory and
administration fees, except as specifically stated otherwise in the paragraphs
that follow.
Using other investment companies to gain exposure to certain foreign
securities: Because of restrictions on direct investment by U.S. entities in
certain countries, other investment companies may provide the most practical (or
only way) for a Fund to invest in certain markets. Such investments may involve
the payment of substantial premiums above the net asset value of those
investment companies' portfolio securities and are subject to limitations under
the Investment Company Act of 1940. A Fund also may incur tax liability to the
extent it invests in the stock of a foreign issuer that is a "passive foreign
investment company," regardless of whether such "passive foreign investment
company" makes distributions to the Fund.
The Emerging Markets Equity Fund is the most likely to make
significant investments in other investment companies to gain exposure to
foreign securities; and John Hancock and the subadviser have agreed to waive
their own management fees with respect to the portion of that Fund's assets
invested in other open-end (but not closed-end) investment companies. (An "open
end" company is one whose shares are freely redeemable. A "closed end" company
is one whose shares can generally be disposed of only in market transactions, as
opposed to redemptions.)
The International Equity Index Fund is likely to invest in closed-end
investment companies known as "country funds" or passive foreign investment
companies. The International Equity Fund may also purchase shares of investment
companies investing primarily in foreign securities, including country funds.
The Large Cap Value CORE and International Equity Funds may invest in
World Equity Benchmark Shares ("WEBS") and other investment company securities
that represent a similar interest in securities included in a foreign securities
index. (These securities are similar in structure to the SPDR's discussed
below.)
Investing in Standard & Poor's Depository Receipts (SPDR's): The
Equity Index, American Leaders Large Cap Value, Large Cap Value CORE, and
Small/Mid Cap CORE Funds may, consistent with their investment objectives,
purchase Standard & Poor's Depository Receipts ("SPDRs"). SPDRs are American
Stock Exchange-traded securities that represent ownership in the SPDR Trust, a
trust which has been established to accumulate and hold a portfolio of common
stocks that is intended to track the price performance and dividend yield of the
S&P 500. This trust is a regulated investment company that is sponsored by a
subsidiary of the American Stock Exchange. SPDRs may be used for several
reasons, including but not limited to: facilitating the handling of cash flows
or trading, or reducing transaction costs.
Investing in money market fund shares: A Fund may also invest in
money market funds managed by its subadviser in reliance upon an exemptive order
received by its subadviser from the SEC. Such exemptive orders may permit funds
managed by the subadviser to invest in money market funds managed by it, to an
extent in excess of amounts otherwise permitted by the Investment Company Act.
The subadviser to the Mid Cap Growth Fund will remit the fees it receives from
money market funds it manages, to the extent such fees are based on the Mid Cap
Growth Fund's assets, to the Mid Cap Growth Fund. Nor are the Large Cap Value
and International Opportunities Funds charged any investment management fees for
investments in money market funds managed by their subadvisers.
23. Purchasing "When Issued" Securities and Forward Commitments
All Funds (other than the Growth & Income and Money Market Funds) may
purchase securities on a when issued or delayed delivery basis. When such
transactions are negotiated, the price of such securities is fixed at the time
of commitment, but delivery and payment for the securities may take place a
month or more after the date of the commitment to purchase. The securities so
purchased are subject to market fluctuations, and no interest accrues to the
purchaser during this period.
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In addition, these Funds may make contracts to purchase securities
for a fixed price at a future date beyond customary settlement time ("forward
commitments"), because new issues of securities are typically offered to
investors on that basis. Forward commitments involve a risk of loss if the value
of the security to be purchased declines prior to the settlement date. This risk
is in addition to the risk of decline in value of the Fund's other assets.
Although a Fund will enter into such contracts with the intention of acquiring
the securities, the Fund may dispose of a commitment prior to settlement if its
subadviser deems it appropriate to do so.
Asset segregation requirement for these transactions. Each Fund will
maintain in a segregated account with its custodian cash or liquid high grade
debt securities that at all times equal the amount of its when issued and
forward commitments.
24. Short-Term Trading
All Funds can use short-term trading of securities as a means of
managing their portfolios to achieve their investment objectives. As used
herein, "short-term trading" means the purchase and subsequent sale of a
security after it has been held for a relatively brief period of time, in some
instances for less than three months. A Fund may engage in short-term trading to
the extent that the subadviser believes the transactions, net of costs
(including commissions, if any), will benefit the Fund. Generally speaking,
short-term trading can be expected to generate expenses for a Fund that would
not be incurred by a Fund that did not engage in that practice.
25. Entering Into Repurchase Agreements
All of the Funds may enter into repurchase agreements.
A repurchase agreement is a contract under which a Fund would acquire
a security for a relatively short period (e.g., 7 days), subject to the seller's
obligation to repurchase the security at a fixed time and price (representing
the Fund's cost plus interest). Repurchase agreements will be entered into only
with member banks of the Federal Reserve System and with "primary dealers" in
U.S. Government securities.
The Managed, Aggressive Balanced, Growth & Income, Large Cap Growth,
Real Estate Equity, Active Bond and Money Market Funds may not invest in
repurchase agreements maturing in more than 7 days. No other Fund will invest in
repurchase agreements maturing in more than 7 days if that investment, together
with any other investments deemed "illiquid," would exceed 15% of the Fund's net
assets.
Each Fund has a procedure providing that the securities serving as
collateral for each repurchase agreement must be delivered to the Fund's
custodian or sub-custodian, either physically or in book-entry form, and that
the collateral must be marked-to-market daily to ensure that each repurchase
agreement is fully "collateralized" at all times. In the event of a bankruptcy
or other default by a seller of a repurchase agreement, however, the Fund could
experience delays in liquidating the underlying securities and could experience
losses (including the possible decline in the value of the underlying securities
during the period while the Fund seeks to enforce its rights thereto, possible
subnormal levels of income and lack of access to income during this period, and
expenses of enforcing its rights).
26. Participating in Joint Trading Accounts
John Hancock has established a "joint trading account" that all
Funds, in the discretion of their subadvisers, can use to invest relatively
small amounts of cash on a more favorable basis than they could do individually.
John Hancock is responsible for investing the aggregate cash balances in the
joint trading account into one or more repurchase agreements, as described in
Section 25. above, or in other money market instruments. The joint trading
account was established pursuant to an order of the SEC and the following Funds
regularly participate in it: the Managed, Aggressive Balanced, Growth & Income,
Large Cap Growth, Large/Mid Cap Value, Small/Mid Cap Growth, Real Estate Equity,
Small Cap Value, International Equity Index, High Yield Bond and Money Market
Funds.
Each Fund is also free to participate in any similar joint trading
account that their subadviser operates for mutual fund assets managed by it.
These other joint trading accounts would be operated pursuant to their own SEC
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exemptive orders, and the following Funds currently participate in such other
joint trading accounts: the Large Cap Value CORE, Mid Cap Growth, Small/Mid Cap
CORE, Small/Mid Cap Growth, Small Cap Growth, International Equity, and Active
Bond Funds.
In each case, the subadviser that operates one of these joint trading
accounts is responsible for ensuring that all repurchase agreements acquired
through these accounts are at all times fully collateralized.
27. Lending of Fund Securities
In order to generate additional income, all Funds may, and most do,
lend securities from their portfolios to brokers, dealers and financial
institutions such as banks and trust companies. Such loans will be secured by
collateral consisting of cash or U.S. Government securities, which will be
maintained in an amount equal to at least 100% of the current market value of
the loaned securities. During the period of the loan, the Fund receives the
income (if any) on the loaned securities, as well as additional compensation for
making the loan. Cash collateral may be invested in short-term securities, which
will increase the current income of the Fund. Such loans will not be for more
than 60 days and will be terminable by the Fund at any time. The Fund will have
the right to regain record ownership of loaned securities in order to exercise
rights of a holder thereof including receiving interest or other distributions
or exercising voting rights. The Fund may pay reasonable fees to persons
unaffiliated with the Fund for services in arranging such loans.
Lending of portfolio securities involves a risk of failure by the
borrower to return the loaned securities, in which event the Fund may incur a
loss. However, most of the Funds' loans of securities are pursuant to an
arrangement with State Street Bank & Trust Company, the Trust's primary
custodian. Under these arrangements, State Street Bank & Trust Company
guarantees the Trust against any loss or damages that any Fund incurs as a
result of the borrower failing to return the Fund's securities in accordance
with the terms of the loan. No Fund will lend portfolio securities having a
total value in excess of 33 1/3% of its total assets.
28. Using Reverse Repurchase Agreements and Mortgage "Dollar Rolls"
The Short-Term Bond and Money Market Funds may enter into reverse
repurchase agreements to facilitate portfolio liquidity, a practice common in
the mutual fund industry, or for arbitrage transactions (discussed below). In a
reverse repurchase agreement, the Fund sells a security and enters into an
agreement to repurchase the security at a specified future date, but at a lower
price. The Fund generally retains the right to interest and principal payments
on the security, as well as use of the proceeds while the repurchase agreement
is outstanding.
The Managed, Aggressive Balanced, Short-Term Bond, Bond Index, Core
Bond, Active Bond, and Global Bond Funds may enter into mortgage dollar rolls,
in which the Fund sells mortgage-backed securities for delivery in the current
month and simultaneously contracts to purchase substantially similar securities
at a specified future date and price. While the Fund foregoes principal and
interest paid on the mortgage-backed securities during the "roll" period, the
Fund is compensated by the difference between the current sale price and the
lower price for the future purchase as well as by any return earned on the
proceeds of the initial sale.
The mortgage dollar rolls and reverse repurchase agreements entered
into by a Fund may be used as arbitrage transactions in which the Fund will
maintain an offsetting position in investment-grade debt obligations or
repurchase agreements that mature on or before the settlement date of the
related mortgage dollar roll or reverse repurchase agreement. Since the Fund
will receive interest on the securities or repurchase agreements in which it
invests the transaction proceeds, such transactions could be considered to
involve leverage. However, since such securities or repurchase agreements will
be high quality and will mature on or before the settlement date of the mortgage
dollar roll or reverse repurchase agreement, the Trust does not believe that
such arbitrage transactions present the risks to the Fund that are associated
with other types of leverage.
Asset segregation requirements for reverse repurchase agreements and
mortgage dollar rolls: Each Fund will set aside in a segregated account with its
custodian liquid assets that at all times are at least equal to its obligations
under outstanding reverse repurchase agreements and mortgage dollar rolls it has
entered into.
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29. Investing in Rule 144A and Illiquid Securities
All Funds, other than the Growth & Income, Large Cap Growth and Real
Estate Equity Funds, may purchase unregistered securities that are eligible for
resale to "qualified institutional buyers" pursuant to Rule 144A under the
Securities Act of 1933. Case-by-case determinations are made whether each issue
of Rule 144A securities owned by the Fund is an illiquid security.
If illiquid, a Rule 144A security may not be purchased by the Money
Market Fund. Nor may the Money Market Fund purchase any other investments that
are deemed to be illiquid, if the total of all its illiquid assets would be more
than 10% of its net assets. Each Fund other than the Money Market Fund, however,
may purchase illiquid Rule 144A securities, or other illiquid assets if, and
only if, the total of all the Fund's illiquid assets would not thereby be made
to exceed 15% of the Fund's net assets.
THE FUNDS' FUNDAMENTAL INVESTMENT RESTRICTIONS
The Funds' investment objectives and strategies may, in general, be
changed without the approval of shareholders.
In a few cases, however, the Investment Company Act requires such approval. In
addition, the Trust has adopted as "fundamental" the below-listed restrictions
relating to the investment of each Fund's assets. That these restrictions are
"fundamental" policies means that they may not be changed for any Fund without
the approval of a majority of the outstanding voting shares of each affected
Fund. (The term "majority of the outstanding voting shares" means the lesser of
(1) 67% of the shares represented at a meeting at which more than 50% of the
outstanding shares are represented or (2) more than 50% of the outstanding
shares.)
To the extent the Trust's prospectus or this Statement of Additional
Information anywhere sets forth investment restrictions more restrictive than
the fundamental restrictions described below, the more restrictive limitation
controls; but any such more restrictive limitation may be changed without any
shareholder approval, subject to the below fundamental restrictions.
As a matter of fundamental policy, no Fund will:
(1) Purchase real estate or any interest therein, except through the
purchase of corporate or certain government securities (including securities
secured by a mortgage or a leasehold interest or other interest in real estate).
A security issued by a real estate or mortgage investment trust or an interest
in a pool of real estate mortgage loans is not treated as an interest in real
estate. Investments of the type permitted in the Real Estate Equity Fund are not
deemed interests in real estate for the purposes of this restriction.
(2) Make loans, other than through the acquisition of obligations in
which the Fund may invest consistent with its objective and investment policies,
except that each Fund may lend portfolio securities not having a value in excess
of 33 1/3% of the Fund's total assets.
(3) Invest in commodities or in commodity contracts or in puts, calls
or a combination of both, except that
(A) the Managed, Aggressive Balanced, Equity Index, Large Cap
Value, American Leaders Large Cap Value, Large Cap Growth, Large Cap
Value CORE, Large Cap Aggressive Growth, Large/Mid Cap Value, Mid Cap
Value, Mid Cap Growth, Fundamental Mid Cap Growth, Mid Cap Blend,
Small/Mid Cap Value, Small/Mid Cap Growth, Small/Mid Cap CORE, Small
Cap Value, Small Cap Growth, Global Balanced, International Equity
Index, International Equity, International Opportunities,
International Opportunities II, Emerging Markets Equity, Short-Term
Bond, Core Bond, Bond Index, Global Bond, and High Yield Bond Funds
may
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(i) write call options on, and purchase put
options covered by, securities held by them and purchase
and sell options to close out positions thus established,
provided that no such covered call or put option position
will be established in the Large Cap Growth Fund if more
than one-third of the Fund's total assets would immediately
thereafter be subject to such call and put options,
(ii) purchase options on stock indexes and write
such options to close out positions previously established,
and
(iii) enter into financial futures contracts or
purchase options on such contracts, and effect offsetting
transactions to close out such positions previously
established; provided that, (a) as to the Large Cap Value,
Large Cap Growth, Mid Cap Value, and Small Cap Value Funds,
no position in financial futures, options thereon or
options on securities indexes will be established if,
immediately thereafter, the then-current aggregate value of
all securities owned or to be acquired by the Fund which
are hedged by such instruments exceeds one-third of the
value of its total assets and (b) as to such Funds, and as
to the Equity Index and International Opportunities Funds,
no futures position or position in options on futures will
be established if, immediately thereafter, the total of the
initial margin deposits required by commodities exchanges
with respect to all open futures positions at the time such
positions were established, plus the sum of the premiums
paid for all unexpired options on futures contracts would
exceed 5% of the Fund's total assets;
(B) with respect to the Managed, Aggressive Balanced,
Equity Index, Large Cap Value, American Leaders Large Cap Value,
Large Cap Value CORE, Large Cap Aggressive Growth, Large/Mid Cap
Value, Mid Cap Value, Mid Cap Growth, Fundamental Mid Cap Growth, Mid
Cap Blend, Small/Mid Cap Value, Small/Mid Cap Growth, Small/Mid Cap
CORE, Small Cap Value, Small Cap Growth, Global Balanced,
International Equity Index, International Equity, International
Opportunities, International Opportunities II, Emerging Markets
Equity, Short-Term Bond, Bond Index, Active Bond, Core Bond, Global
Bond, and High Yield Bond Funds, forward foreign exchange contracts,
forward commitments, and when issued securities are not deemed to be
commodities or commodity contracts or puts or calls for the purposes
of this restriction;
(C) the Managed, Aggressive Balanced, Mid Cap Growth,
American Leaders Large Cap Value, Large Cap Value CORE, Large Cap
Aggressive Growth, Large/Mid Cap Value, Small/Mid Cap Growth,
Small/Mid Cap CORE, Small Cap Growth, Global Balanced, International
Equity Index, International Equity, International Opportunities II,
Emerging Markets Equity, Short-Term Bond, Bond Index, Global Bond,
and High Yield Bond Funds may, in addition to the activities
permitted in (A) and (B) above,
(i) write put and call options on securities and
market indexes, if such positions are covered by other
securities or outstanding put and call positions of the
Fund, and purchase put and call options to close out any
positions thus established, and
(ii) enter into futures contracts on securities
or market indexes, or purchase or write put or call options
on such futures contracts, for hedging or speculative
(non-hedging) purposes, and enter into offsetting
transactions to close out any positions thus established;
provided that none of these Funds may purchase, sell or
write such futures or options other than for bona fide
hedging purposes if immediately thereafter the Fund's
margin deposits on such non-hedging positions, plus the
amount of premiums paid for outstanding options on futures
contracts that are not for bona fide hedging purposes (less
any amount by which any such option is "in the money" at
the time of purchase) exceeds 5% of the market value of the
Fund's net assets;
(D) the Active Bond and Core Bond Funds may enter into
futures contracts and purchase or write options thereon to the same
extent as is permitted in (C), above, with respect to the Funds
listed therein; and
29
<PAGE>
(E) the Managed, Aggressive Balanced, Equity Index, Large
Cap Value, American Leaders Large Cap Value, Large Cap Value CORE,
Large Cap Aggressive Growth, Large/Mid Cap Value, Mid Cap Value, Mid
Cap Growth, Fundamental Growth, Mid Cap Blend, Small/Mid Cap Value,
Small/Mid Cap CORE, Small Cap Value, Small Cap Growth,
Global Balanced, International Equity Index, International Equity,
International Opportunities, International Opportunities II, Emerging
Markets Equity, Core Bond, Global Bond, and High Yield Bond Funds may
purchase or write put or call options on foreign currencies, may
purchase put or call options on securities, and may enter into
closing transactions with respect to any of such options.
(4) Engage in the underwriting of securities of other issuers, except
to the extent the Fund may be deemed an underwriter in selling as part of an
offering registered under the Securities Act of 1933 securities which it has
acquired.
(5) Borrow money, except from banks as a temporary measure where such
borrowings would not exceed 5% of the market value of total assets of the Fund
as of the time each such borrowing is made, or 10% as to the Aggressive
Balanced, American Leaders Large Cap Value, Large Cap Value CORE, Large Cap
Aggressive Growth, Large/Mid Cap Value, Fundamental Growth, Mid Cap Blend,
Small/Mid Cap Value, Small/Mid Cap CORE, International Equity
Index, International Equity, International Opportunities II, Emerging Markets
Equity, Bond Index, Core Bond and High Yield Bond Funds, subject to a non-
fundamental policy that none of these Funds will make additional investments at
any time when such borrowings plus any amounts payable by the Fund under reverse
repurchase agreements exceed 5% of that Fund's total assets.
(6) Except as set forth in the following sentence, neither the
Managed and Active Bond Funds, nor the Growth & Income, Large Cap Growth, Real
Estate Equity, or Money Market Funds may purchase securities which are subject
to legal or contractual delays in or restrictions on resale. The Managed and
Active Bond Funds may, however, purchase restricted securities, including those
eligible for resale to "qualified institutional buyers" pursuant to Rule 144A
under the Securities Act of 1933, subject to a non fundamental restriction
limiting all illiquid securities held by each Fund to not more than 15% of the
Trust's net assets.
(7) Purchase securities on margin, except for short-term credits as
may be necessary for the clearance of purchases or sales of securities, or
effect a short sale of any security. Neither the use of futures contracts as
permitted by restriction (3), above nor the use of option contracts as permitted
by restriction (3) above, shall be deemed to be the purchase of a security on
margin.
(8) Invest for the purpose of exercising control over or management
of any company.
(9) Unless received as a dividend or as a result of an offer of
exchange approved by the Securities and Exchange Commission ("SEC") or of a plan
of reorganization, purchase or otherwise acquire any security issued by an
investment company if the Fund would immediately thereafter own (a) more than 3%
of the outstanding voting stock of the investment company, (b) securities of the
investment company having an aggregate value in excess of 5% of the Fund's total
assets, (c) securities of investment companies having an aggregate value in
excess of 10% of the Fund's total assets, or (d) together with investment
companies having the same investment adviser as the Fund (and companies
controlled by such investment companies), more than 10% of the outstanding
voting stock of any registered closed-end investment company. A real estate or
mortgage investment trust is not considered an investment company. This
restriction (9) does not apply to the Aggressive Balanced, Equity Index, Large
Cap Value, American Leaders Large Cap Value, Large Cap Value CORE, Large Cap
Aggressive Growth, Large/Mid Cap Value, Mid Cap Value, Mid Cap Growth,
Fundamental Growth, Mid Cap Blend, Small/Mid Cap Value, Small/Mid Cap CORE,
Small Cap Value, Small Cap Growth, International Equity, Global
Balanced, International Opportunities, International Opportunities II, Emerging
Markets Equity, Bond Index, Core Bond, Global Bond, or High Yield Bond Funds.
(10) Purchase securities of any issuer, if (a) with respect to 75% of
the market value of its total assets, more than 5% of the Fund's total assets
taken at market value would at the time be invested in the securities of such
issuer, unless such issuer is the United States Government or its agency or
instrumentality, or (b) such purchase would result in more than 10% of the
outstanding voting securities of such issuer being held by the Fund. This
restriction (10) does not apply to the Large Cap Aggressive Growth, Mid Cap
Growth or Global Balanced Funds.
30
<PAGE>
(11) Issue senior securities. For the purposes of this restriction,
the following shall not be deemed to be the issuance of a senior security: the
use of futures contracts as permitted by restriction (3), above; the use of
option contracts as permitted by restriction (3), above; and the use of foreign
currency contracts.
The Aggressive Balanced, Equity Index, Large Cap Value, American
Leaders Large Cap Value, Large Cap Value CORE, Large Cap Aggressive Growth,
Large/Mid Cap Value, Mid Cap Value, Mid Cap Growth, Fundamental Mid Cap Growth,
Mid Cap Blend, Small/Mid Cap Value, Small/Mid Cap Growth, Small/Mid Cap CORE,
Small Cap Value, Small Cap Growth, Global Balanced, International Equity Index,
International Equity, International Opportunities, International Opportunities
II, Emerging Markets Equity, Short-Term Bond, Bond Index, Active Bond, Core
Bond, Global Bond, and High Yield Bond Funds will not purchase the securities of
issuers conducting their principal business activity in the same industry if,
immediately after such purchase, the value of the Trust's investments in such
industry would exceed 25% of its total assets taken at market value. For the
purpose of this restriction, telephone, water, gas and electric public utilities
are each regarded as separate industries, and wholly-owned finance companies are
considered to be in the industry of their parents if their activities are
primarily related to financing the activities of their parent. In conformity
with its understanding of current interpretations of the Investment Company Act
by the staff of the SEC, the Trust, as a non-fundamental policy, interprets this
limitation not to apply to securities issued by the Federal government, or state
and local governments within the U.S., or political subdivisions thereof; but
this exception does not apply to securities of foreign government entities. If
these interpretations change, however, the Trust may modify its practices to
conform to such changes.
For purposes of any restrictions or limitation to which the Trust is
subject, no Fund, by entering into any futures contract or acquiring or writing
any option thereon or on any security or market index, shall be deemed
(1) to have acquired or invested in any securities of any exchange or
clearing corporation for any such instrument or
(2) to have acquired or invested in any debt obligations or in any
stocks comprising indexes on which such instrument is based, but which the Fund
does not hold directly in its portfolio.
BOARD OF TRUSTEES AND OFFICERS OF THE TRUST
The Board of Trustees of the Trust is responsible for overall
management of the Trust. The Board may exercise all powers of the Trust, except
those powers which are conferred solely upon or reserved to the shareholders.
The following table provides information about the members of the Board of
Trustees and the officers of the Trust:
<TABLE>
<CAPTION>
Name, Address and Age Positions Held With Trust Principal Occupation(s) During Past Five Years
--------------------- ------------------------- ----------------------------------------------
<S> <C> <C>
Michele G. Van Leer* (age 42) Senior Vice President, Product Management, John Hancock
John Hancock Place Chairman and Trustee Life Insurance Company; President & Director, John
Boston, Massachusetts 02117 Hancock Variable Life Insurance Company
Thomas J. Lee* (age 45) Vice Chairman, President and Vice President, Life and Annuity Services, John Hancock
John Hancock Place Trustee Life Insurance Company; Director, John Hancock Variable
Boston, Massachusetts 02117 Life Insurance Company
</TABLE>
31
<PAGE>
<TABLE>
<CAPTION>
Name, Address and Age Positions Held With Trust Principal Occupation(s) During Past Five Years
--------------------- ------------------------- ----------------------------------------------
<S> <C> <C>
Elizabeth G. Cook (age 62) Trustee Expressive Arts Therapist, Dana-Farber Cancer
85 East India Row Institute; President, The Advertising Club of Greater
Boston, Massachusetts 02110 Boston
Diane C. Kessler (age 53) Trustee Executive Director, Massachusetts Council of Churches
325 Parker Street
Newton Centre
Massachusetts 02159
Robert Verdonck (age 54) Trustee President and Chief Executive Officer, East Boston
One Bennington Street Savings Bank
East Boston
Massachusetts 02128
Hassell H. McClellan (age 54) Trustee Professor and Graduate Dean, The Graduate School of the
Boston College Wallace E. Carroll School of Management, Boston College
Graduate School of Management
Fulton 320
140 Commonwealth Avenue
Chestnut Hill, Massachusetts
02467
Raymond F. Skiba (age 54) Treasurer Director, Fund Operations, John Hancock Life Insurance
John Hancock Place Company
Boston, Massachusetts 02117
Karen Q. Visconti (age 47) Secretary Senior Marketing Consultant,
John Hancock Place Life Product Management
Boston, Massachusetts 02117
</TABLE>
* Ms. Van Leer and Mr. Lee are the only Trustees who are "interested persons" as
defined in the Investment Company Act. They also constitute the Trust's
Executive Committee. The Executive Committee may from time to time be delegated
power to act on behalf of the Board of Trustees, except with repect to
declarations of dividends or distributions, recommendations to the shareholders
on actions requiring shareholder approval, changes to the Trust's bylaws, or
mergers or share exchanges which do not require shareholder approval.
Certain members of the Trust's Board of Trustees may own either
variable annuity contracts or variable life insurance policies that are
supported by one of the Separate Accounts and, in that sense, have an interest
in shares of the Trust.
The combined interest of all the Trust's officers and Trustees, however, does
not aggregate as much as 1% of any Fund's net assets.
Compensation paid by the Trust to its current disinterested Trustees
during 1999 was as follows:
Ms. Cook $46,600.00
Ms. Kessler $30,550.00
Mr. Verdonk $30,250.00
The Trust paid no compensation to any other officer or Trustee.
32
<PAGE>
INVESTMENT ADVISORY ARRANGEMENTS
The Trust's Investment Advisory Arrangements With John Hancock
John Hancock, the Trust's investment adviser, is a Massachusetts
corporation. Until February 1, 2000, John Hancock was a mutual life insurance
company. Now, it is a subsidiary of John Hancock Financial Services, Inc., a
publicly-traded holding company. John Hancock provides advisory services to the
Fund pursuant to several investment advisory agreements. Each Fund is party to
one of these investment advisory agreements with John Hancock.
The Trust pays John Hancock investment advisory fees at the following
rates:
<TABLE>
<CAPTION>
John Hancock's Investment Advisory Fee
as an Annual Percentage of Each Portion
Fund of the Fund's Average Daily Net Assets
---- --------------------------------------
<S> <C>
Managed .40% of first $500 million; .35% of next $500 million; .30% above $1 billion
Large Cap Growth
Growth & Income .25%
Aggressive Balanced .675% of first $250 million; .625% of next $250 million; .60% above $500 million
Large Cap Value CORE .75% of first $50 million; .65% 0f next $150 million; .60% above $200 million
American Leaders Large Cap Value .80% of first $50 million; .65% of next $200 million; .60% of next $250 million;
.55% above $500 million
Large Cap Aggressive Growth 1.00% of first $10 million; .875% of next $10 million; .75% above $20 million
Active Bond .25%
Money Market .25%
Small Cap Growth .75%
Large Cap Value .75% of first $100 million; .70% of next $150 million; .65% above $250 million
Equity Index .15% of first $75 million; .14% of next $50 million; .13% above $125 million
Large/Mid Cap Value .95% of first $25 million; .85% of next $25 million; .75% of next $50 million; 65%
above $100 million
Small Cap Value .80% of first $100 million; .75% of next $100 million; .65% above $200 million
Mid Cap Value .80% of first $100 million; .775% of next $150 million; .75% of next $250 million;
.725% of next $250 million; .70% above $750 million
Mid Cap Growth .85% of first $100 million; .80% above $100 million
</TABLE>
33
<PAGE>
<TABLE>
<CAPTION>
John Hancock's Investment Advisory Fee
as an Annual Percentage of Each Portion
Fund - continued of the Fund's Average Daily Net Assets - continued
---------------- --------------------------------------------------
<S> <C>
Fundamental Mid Cap Growth .85% of first $50 million; .80% of next $50 million; .75% of next $50 million; .70%
above $150 million
Real Estate Equity 1.10% of first $50 million; 1.00% of the next $50 million; .90% of the next $100
million; .80% above $200 million
Mid Cap Blend .75% of first $250 million; .70% of next $250 million; .65% above $500 million
Small/Mid Cap Growth .75% of first $250 million; .70% of next $250 million; .65% above $500 million
Small/Mid Cap Value .95% of first $100 million; .90% of next $150 million; .85% over $250 million
Small/Mid Cap CORE .80% of first $50 million; .70% above $50 million
Global Balanced .85% of first $100 million; .70% above $100 million
International Equity Index .18% of first $100 million; .15% of next $100 million; .11% above $200 million
International Equity 1.00% of first $50 million; .95% of next $150 million; .90% above $200 million
International Opportunities 1.00% of first $20 million; .85% of next $30 million; .75% above $50 million
International Opportunities II .90% of first $50 million; .80% of next $100 million; .70% above $150 million
Emerging Markets Equity 1.30% of first $10 million; 1.20% of next $140 million; 1.10% above $150 million
Short-Term Bond .30%
Bond Index .15% of first $100 million; .13% of next $150 million; .11% above $250 million
Core Bond .70% of first $25 million; .65% of next $25 million; .60% of next $100 million; .55%
above $150 million
Global Bond .75% of first $25 million; .65% of next $50 million; .55 of next $75 million; .50%
above $150 million
High Yield Bond .65% of first $100 million; .60% of next $100 million; .50% above $200 million
</TABLE>
Under its investment advisory agreements with the Trust, John Hancock
advises the Trust in connection with policy and strategy decisions; provides
administration of much of the Trust's day-to-day operations; serves as
34
<PAGE>
the Trust's transfer agent and dividend disbursing agent; prepares the Trust's
financial statements; maintains records required by the Investment Company Act
of 1940; and supervises activities of the subadvisers (discussed below) and of
other service providers to the Trust. John Hancock also provides the Trust with
office space, supplies and other facilities required for the business of the
Trust. John Hancock pays the compensation of Trust officers and employees and
the expenses of clerical services relating to the administration of the Trust.
To the extent that any administrative or legal services for the Trust are
provided by John Hancock's Law Department, however, John Hancock charges the
Trust separately, and the Trust pays such charges in accordance with the terms
of the investment advisory agreements.
All other expenses not expressly assumed by John Hancock under the
investment advisory agreements are paid by the Trust. These include, but are not
limited to, the Trust's taxes (if any); custodian fees; auditing fees; brokerage
commissions; advisory fees; the compensation of Trustees who are not affiliated
with John Hancock; the Trust's fidelity bond coverage; the costs of printing and
distributing annual and semi-annual reports and voting materials to holders of
variable annuity contracts and variable life insurance policies that participate
in the Trust; tabulating votes; fees for certain accounting, valuation, and
compliance services; legal fees; SEC registration costs; proxy costs; costs of
organizing any new Funds; and other expenses related to the Trust's operations.
The Trust's Arrangements With Subadvisers
Set forth below are the names to the Funds' subadvisers and certain
persons who may control them.
<TABLE>
<CAPTION>
Subadviser Subadviser's General Nature
and the Funds Controlling of
It Manages Person Basis of Control Control Person's Business
---------- ------ ---------------- -------------------------
<S> <C> <C> <C>
1. Independence Investment Associates, John Hancock Indirectly owns 100% of Financial services holding company
Inc. (Managed, Growth & Income, Financial Services voting stock
Large Cap Growth, Real Estate Inc.
Equity, Short-Term Bond, Aggressive Life insurance and other financial
Balanced, and Mid-Cap Blend Funds) John Indirectly owns services provided directly or
Hancock 100% of voting stock through subsidiaries
Life Insurance
Company
2. John Hancock Advisers, Inc. (Small Same as 1. above.
Cap Growth and Active Bond Funds)
3. State Street Bank & Trust Company State Street Owns 100% of the Financial services holding company
(Equity Index Fund) Corporation subadviser
4. T. Rowe Price Associates, Inc. None Publicly traded investment adviser
(Large Cap Value Fund) and financial services company
5. Neuberger & Berman, LLC (Mid Cap Neuberger Berman Inc. Owns 100% of the Financial services holding company
Value Fund) subadviser
</TABLE>
35
<PAGE>
<TABLE>
<CAPTION>
Subadviser Subadviser's General Nature
and the Funds Controlling of
It Manages - continued Person Basis of Control Control Person's Business
---------------------- ------ ---------------- -------------------------
<S> <C> <C> <C>
6. Janus Capital Corporation Kansas City Southern Indirectly owns 82% of Publicly traded transportation and
(Mid Cap Growth Fund) Industries, Inc. the subadviser financial services company
Thomas H. Bailey Private Investor
Owns 12% of the
subadviser and, by
contract, may elect
majority of the
subadviser's directors
7. Goldman Sachs Asset Management Goldman Sachs & Co. The subadviser is a unit Publicly traded investment banking
(Small/Mid Cap CORE, Large Cap Value of the Investment and financial services company
CORE, and International Equity Funds Management Division of
Goldman Sachs & Co.
8. INVESCO Management & Research, Inc. AMVESCAP, Inc. Indirectly owns 100% of Financial services holding company
(Small Cap Value Fund) voting stock
9. Brinson Partners, Inc. (Global UBS AG Indirectly owns 100% of Full service global financial
Balanced Fund) voting stock services company
10. Independence Inter-national John Hancock Indirectly owns 100% of Financial services holding company
Associates, Inc. (International Financial Services voting stock
Equity Index Fund) Inc.
Life insurance and other financial
John Hancock Life Indirectly owns services provided directly or
Insurance Company 100% of voting stock through subsidiaries
Independence Investment manager and adviser
Investment Owns 100% of voting
Associates, Inc. stock
11. Rowe Price Fleming International, T. Rowe Price Owns 50% of the subadviser Publicly traded investment adviser
Inc. (International Opportunities Associates, Inc. and financial services company;
Fund, International Opportunities
II Fund)
Owns, directly and Financial services company
Robert Fleming indirectly, 50% of the
Holdings, Ltd. subadviser
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
Subadviser Subadviser's General Nature
and the Funds Controlling of
It Manages - continued Person Basis of Control Control Person's Business
---------------------- ------ ---------------- -------------------------
<S> <C> <C> <C>
12. Morgan Stanley Dean Witter Morgan Stanley Dean Directly owns 100% of
Investment Management Inc. (Emerging Witter & Co. voting stock
Markets Equity and Real Estate
Equity Funds)
13. Mellon Bond Associates, LLP (Bond Mellon Financial Directly owns 100% of the Bank holding company
Index Fund) Corporation subadviser
14. J.P. Morgan Investment Management J.P.Morgan & Co. Owns 100% of the Financial services holding company
Inc. (Global Bond Fund) Incorporated subadviser
15. Wellington Management Company, LLP Laurie A. Gabriel; Managing Partners Investment management
(High Yield Bond, Small/Mid Cap Duncan M. McFarland;
Growth, and Large/Mid Cap Value John R. Ryan
Funds)
16. Alliance Capital Management, LLP The Equitable Life ELAS and its subsidiaries Life insurance and other financial
(Large Cap Aggressive Growth) Assurance Society of owned (as of 11/1/99) services
the U.S. ("ELAS") 55.38% partnership
interest in the subadviser
17. The Boston Company Asset Management, Mellon Financial The subadviser is an Financial services holding company
LLC (Small/Mid Cap Value Fund) Corporation indirect wholly owned
("Mellon") subsidiary of Mellon
18. OppenheimerFunds, Inc. (Fundamental Massachusetts Mutual MML indirectly owns a Life insurance and other financial
Mid Cap Growth Fund) Life Insurance majority of the services
Company ("MML") subadviser's voting stock
19. Federated Investment Management Federated Investors, The subadviser is a Investment management and related
Company Inc. subsidiary of Federated financial services
Investors, Inc.
</TABLE>
37
<PAGE>
Set forth below are the sub-advisory fees that John Hancock pays the subadvisers
for each Fund. The below fees are paid by John Hancock and not by the Funds.
<TABLE>
<CAPTION>
Subadvisory Fees Payable by John Hancock,
Fund as a Percentage of Each Fund's Average Daily Net Assets
---- -------------------------------------------------------
<S> <C>
Large Cap Growth, .30% of first $500 million; .2625% of next $500 million; and .225% above $1 billion
Managed
Growth & Income, .1875%
Active Bond
Real Estate Equity Assets managed by Independence Investment Associates, Inc.: .30% of first $300 million;
.25% of next $500 million; and .20% above $800 million
Assets managed by Morgan Stanley Dean Witter Investment Management Inc.: .70%
of first $50 million; .60% of next $50 million; .50% of next $100 million; and .40%
above $200 million
Short-Term Bond .19% of first $250 million; .17% of next $250 million; and .15% above $500 million
Aggressive Balanced .325% of first $250 million; .275% of next $250 million; and .25% above $500 million
Mid Cap Blend .40% of first $250 million; .35% of next $250 million; and .30% above $500 million
Small Cap Growth .50%
Equity Index .07% of first $75 million; .06% of next $50 million; .05% of next $275 million; and .03% above $400
million
Large Cap Value .50% of first $100 million; .45% of next $150 million; and .40% above $250 million
American Leaders Large .40% of first $50 million; .25% of next $200 million; .20% of next $250 million; .15% above $500
Cap Value million
Mid Cap Value .50% of first $100 million; .475% of next $150 million; .45% of next $250 million; .425% of next $250
million; and .40% above $750 million
Mid Cap Growth .60% of first $100 million; .55% of the next $400 million; and .45% above $500 million
Small/Mid Cap .60% of first $50 million; and .50% above $50 million
CORE
Large Cap Value .40% of first $50 million; .30% of next $150 million; and .25% above $200 million
CORE
International Equity .60% of first $50 million; .55% of next $150 million; and .50% above $200 million
Small Cap Value .55% of first $100 million; .50% of next $100 million; and .40% above $200 million
Global Balanced .50% of first $100 million; and .35% above $100 million
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
Subadvisory Fees Payable by John Hancock,
Fund - continued as a Percentage of Each Fund's Average Daily Net Assets - continued
---------------- -------------------------------------------------------------------
<S> <C>
International Equity .125% of first $100 million; .10% of next $100 million; and .06% above $200 million
Index
International .75% of first $20 million; .60% of next $30 million; .50% of next $150 million; and
Opportunities 50% of all assets if the Fund reaches $200 million of net assets
---
International .70% of first $50 million; .60% of next $100 million; and .50% above $150 million
Opportunities II
Emerging Markets 1.10% of first $10 million; .90% of next $140 million; and .80% above $150 million.
Equity
Core Bond .30% of first $25 million; .25% of next $25 million; .20% of next $100 million; .15% above $150
million
Bond Index .08% of first $100 million; .06% of next $150 million; and .04% above $250 million
Global Bond .50% of first $25 million; .40% of next $50 million; .30% of next $75 million; and .25% above $150
million
High Yield Bond .50% of first $100 million; .45% of next $100 million; and .35% above $200 million.
Small/Mid Cap .55% of first $100 million; .45% of next $100 million; and .40% above $200 million
Growth
Large/Mid Cap .60% of first $25 million; .50% of next $25 million; .40% of next $50 million; and .30% above $100
Value million
Large Cap .75% of first $10 million; .625% of next $10 million; and .50% above $20 million
Aggressive Growth
Small/Mid Cap .65% of first $100 million; .60% of next $150 million; and .55% above $250 million
Value
Fundamental Mid .50% of the first $50 million; .45% of next $50 million; .40% of next $50 million; and .35% above
Cap Growth $150 million
</TABLE>
Dollar Amounts of Advisory Fees, Subadvisory Fees, and Expense Reimbursements
Set out below are the dollar amounts of advisory fees that the Trust
paid to John Hancock and the subadvisory fees that John Hancock paid to
subadvisers for the past three years:
<TABLE>
<CAPTION>
Fund Investment Adviser Subadvisers*
---- --------------------------------------------------- ---------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Aggressive Balanced .......... $ 23,956 -- -- $ 11,118 -- --
Managed ...................... 10,789,553 9,825,708 8,515,377 8,001,416 7,369,096 6,386,533
Growth & Income .............. 9,806,770 7,959,851 6,125,461 7,269,220 5,970,179 4,532,841
Equity Index ................. 448,044 270,965 95,900 181,624 134,418 33,565
Large Cap Value .............. 1,087,807 746,229 328,969 710,068 497,498 219,423
Large Cap Value CORE ......... 13,622 -- -- 6,990 -- --
Large Cap Growth ............. 4,378,106 3,445,963 2,520,205 3,250,179 2,584,378 1,890,154
Large Cap Aggressive
Growth .................... 38,421 -- -- 27,498 -- --
Large/Mid Cap Value .......... 16,857 -- -- 10,259 -- --
Mid Cap Value ................ 735,223 708,164 251,970 469,451 486,843 173,229
</TABLE>
39
<PAGE>
<TABLE>
<CAPTION>
Fund - continued Investment Adviser Subadvisers*
----------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Mid Cap Growth ........................... 1,646,277 506,917 230,304 1,119,977 357,811 162,595
Real Estate Equity ....................... 835,184 1,071,226 1,052,761 413,496 535,611 526,381
Small/Mid Cap Value ...................... 15,837 -- -- 10,454 -- --
Small/Mid Cap Growth ..................... 1,360,053 1,490,558 1,564,619 902,527 993,730 1,043,601
Fundamental Mid Cap
Growth ................................ 17,491 -- -- 9,805 -- --
Mid Cap Blend ............................ 13,034 -- -- 6,703 -- --
Small/Mid Cap CORE ....................... 47,616 24,490 -- 35,177 18,367 --
Small Cap Value .......................... 512,633 444,992 187,062 348,363 305,920 128,605
Small Cap Growth ......................... 732,594 420,449 251,331 478,916 280,306 167,638
International Balanced ................... 253,044 235,511 214,682 147,136 138,538 126,233
International Equity Index ............... 313,649 503,992 968,010 210,822 339,357 645,663
International Equity ..................... 35,992 -- -- 20,788 -- --
International
Opportunities ......................... 582,128 440,905 234,405 409,561 821,925 175,804
International Opportunities II ........... 157,808 87,055 -- 121,054 67,708
Emerging Markets
Equity ................................ 182,265 67,915 -- 145,114 57,466 --
Short-Term Bond .......................... 216,170 192,680 220,493 135,464 122,022 83,787
Bond Index ............................... 48,433 26,490 -- 25,498 14,128 --
Active Bond .............................. 2,214,912 2,127,466 4,243,027 1,643,765 1,595,666 1,410,726
Global Bond .............................. 488,070 328,177 142,441 306,570 211,575 95,008
High Yield Bond .......................... 111,177 49,428 -- 84,425 38,023 --
Money Market ............................. 965,427 748,405 564,173 953,183 -- --
</TABLE>
----------------------------
* Paying these fees to the sub-advisers is solely the responsibility of John
Hancock and not the Trust.
Under the investment advisory agreements, for any fiscal year in
which the normal operating costs and expenses of any Fund, exclusive of the
investment advisory fee, interest, brokerage commissions, taxes and
extraordinary expenses outside the control of John Hancock exceed 0.10% (.25%
prior to April 23, 1999) of that Fund's average daily net assets, John Hancock
will reimburse that Fund in an amount equal to such excess. These reimbursements
have been as follows for the past three years (rounded to the nearest $1,000):
Fund 1999 1998 1997
---- ---- ---- ----
Aggressive Balanced ............. $ 6,609 -- --
Equity Index .................... 275,336 543,000 217,000
Large Cap Value ................. -- -- 25,000
Large Cap Value CORE ............ 5,824 -- --
Large Cap Aggressive Growth ..... 3,504 -- --
Large/Mid Cap Value ............. 6,512 -- --
Mid Cap Value ................... -- -- 29,000
Mid Cap Growth .................. -- 15,000 86,000
Small/Mid Cap Growth ............ 1,790 -- --
Small Cap Value ................. 6,224 17,000 57,000
Small Cap Growth ................ 27,000 38,000
Global Balanced ................. 91,146 199,000 116,000
40
<PAGE>
Fund - continued 1999 1998 1997
---- ---- ---- ----
International Equity Index 21,900 124,000 --
International Equity 21,901 -- --
International Opportunities 92,017 145,000 86,000
International Opportunities II 62,210 126,000 --
Global Bond 1,445 31,000 61,000
Fundamental Mid Cap Growth 2,888 -- --
Mid Cap Blend 6,011 -- --
Small/Mid Cap CORE 77,179 107,000 --
Small/Mid Cap Value 9,254 -- --
Emerging Markets Equity 294,354 111,000 --
Bond Index 17,185 56,000 --
High Yield Bond 42,314 85,000 --
ARRANGEMENTS WITH OTHER SERVICE PROVIDERS
TO THE TRUST
Underwriting and Indemnity Agreement
Pursuant to an Underwriting and Indemnity Agreement, Signator Investors,
Inc. ("Signator") serves as the Trust's principal underwriter, and John Hancock
provides certain indemnities to the Trust and its Trustees. Neither Signator nor
John Hancock receives any additional compensation from the Trust for the
services and indemnities they provide pursuant to the Underwriting and Indemnity
Agreement. The offering of the Trust's shares through Signator is a continuous
offering on a "best efforts" basis. Signator is a wholly-owned subsidiary of
John Hancock and is located at 197 Clarendon Street, Boston, MA 02117.
Custody of the Trust's Assets
State Street Bank and Trust Company ("State Street Bank") is the primary
custodian of the assets of all Funds. State Street Bank's principal business
address is 225 Franklin Street, Boston MA 02110. The primary custodian's duties
include safeguarding and controlling the Trust's cash and investments, handling
the receipt and delivery of securities, and collecting interest and dividends on
the Trust's investments. Fund securities purchased in the United States are
maintained in the custody of State Street Bank, although such securities may be
deposited in the book-entry system of the Federal Reserve System, with
Depository Trust Company, or with other qualified domestic book-entry systems or
depositories. Also, pursuant to its agreement with the Trust, State Street Bank
provides certain accounting and recordkeeping services to the Trust and
generally values the Trust's assets by computing each Fund's net asset value
each day. The Trust compensates State Street Bank for these functions through
the payment of an annual custody asset fee of .01% of the total net assets of
the Trust, allocated to each Fund based on the percentage of that Fund's total
net assets to the total net assets of the Trust; miscellaneous transaction
charges ranging from $7.00 to $25.00; global asset and transaction fees that
vary by the country in which a Fund's assets are held or traded; a monthly
accounting fee charge that is allocated to each Fund based on the percentage of
that Fund's total net assets to the total net assets of the Trust; valuation and
monthly quote charge; special service fees for activities of a non-recurring
nature; and reimbursement of specified out-of-pocket expenses.
Foreign securities are generally held through subcustodian banks and
depositories around the world with whom State Street Bank has relationships. In
some cases, Funds whose securities are held in this manner may be exposed to
greater risks of loss. This is because the soundness of such foreign entities,
as well as foreign regulatory practices and procedures, may provide less
protection to security holders than is available in the U.S.
In certain circumstances, brokers may have access to assets that a Fund
posts as "margin" in connection with futures and options transactions. In the
event of a broker's insolvency or bankruptcy, a Fund could experience a delay or
incur costs in recovering such assets or might recover less than the full amount
due. Also the value of such assets could decline by the time the Trust could
effect such recovery.
41
<PAGE>
If on any day a Fund experiences net realized or unrealized gains with
respect to financial futures contracts held through a given broker, it will be
entitled immediately to receive from the broker the net amount of such gains.
The Trust will request payment of such amounts promptly after notification by
the broker that such amounts are due. Thereupon, these assets will be deposited
in the Trust's general or segregated account with its primary custodian, as
appropriate.
Subadministration Agreement With State Street Bank
Pursuant to a subadministration agreement, with the Trust, State Street
Bank also provides assistance to John Hancock and the subadvisers in computing
total return information for the Trust and in monitoring each Fund's compliance
with the Fund's investment objectives and restrictions, as well as compliance
with certain other applicable legal requirements, . The Trust compensates State
Street Bank for these services through payment of an annual fee that accrues
daily and is billed monthly in arrears. The annual fee is based on the average
net assets of the Trust and is 0.012% of the first $1 billion of average net
assets, 0.0075% of the next $1 of average net assets, and 0.0025% of average net
assets after that. Each Fund is allocated the greater of a minimum monthly Fund
fee or the basis point annual fee, based on the pro-rata total net asset value
of that Fund. The minimum monthly Fund fee is phased-in for new Funds at the
rate of 1/12 in month one, 2/12th in month two, increasing incrementally per
month until the full monthly minimum is in effect in month 12 ($1,333).
Independent Auditors
Ernst & Young LLP, 200 Clarendon Street, Boston, Massachusetts, are the
independent auditors of the Trust. Ernst & Young audits the financial statements
of the Trust, prepares the Trust's tax returns, and renders other advice to the
Trust concerning accounting and tax matters. Ernst & Young also meets
periodically with the Trust's Board and with the Audit Committee of the Board to
discuss matters within the scope of Ernst & Young's activities with respect to
the Trust.
PORTFOLIO TRANSACTIONS AND BROKERAGE ALLOCATION
The Funds pay brokers' commissions, transfer taxes, and other fees relating
to their specific portfolio transactions. (Investments in debt securities are,
however, generally traded on a "net" basis through issuers or dealers acting for
their own account as principals and not as brokers. Therefore, no brokerage
commissions are payable on most such transactions, although the price to the
Trust usually reflects a dealer "spread" or "mark-up.")
Amounts of Brokerage Paid
Brokerage commissions paid by the Funds were as follows for the past three
years:
Fund 1999 1998 1997
---- ---- -------- ----
Aggressive Balanced ............ $ 4,424 $ -- $ --
Managed ........................ 2,385,643 1,843,929 1,626,154
Growth & Income ................ 4,741,953 2,673,170 1,646,997
Equity Index ................... 61,865 33,797 31,076
Large Cap Value ................ 110,393 63,944 45,619
Large Cap Value CORE ........... 3,240 -- --
Large Cap Growth ............... 1,389,454 815,587 680,933
Large Cap Aggressive Growth .... 11,885 -- --
Large/Mid Cap Value ............ 6,876 -- --
Mid Cap Value .................. 383,634 495,154 122,108
Mid Cap Growth ................. 245,913 146,033 71,998
Real Estate Equity ............. 122,021 177,186 122,897
Fundamental Mid Cap Growth ..... 3,082 -- --
Mid Cap Blend .................. 5,586 -- --
42
<PAGE>
Fund - continued 1999 1998 1997
---------------- ---- ---- ----
Small/Mid Cap Value ............. 21,848 -- --
Small/Mid Cap CORE .............. 12,371 7,225 --
Small/Mid Cap Growth ............ 621,068 893,945 1,876,203
Small Cap Value ................. 284,381 176,549 138,114
Small Cap Growth ................ 146,206 103,248 67,492
Global Balanced ................. 47,678 51,205 27,745
International Equity Index ...... 133,746 730,529 750,416
International Equity ............ 16,561 -- --
International Opportunities ..... 74,940 117,083 63,138
International Opportunities II .. 25,925 37,426 --
Emerging Markets Equity ......... 189,025 10,018 --
Bond Index ...................... 598 -- --
High Yield Bond ................. 200 -- --
How Brokers and Dealers are Selected
Orders for the purchase and sale of Fund portfolio investments are placed
by John Hancock with respect to the Money Market Fund and by the respective
subadvisers to the other Funds. All of these subadvisers place orders in such
manner as, in their opinion, will offer the best overall price and execution of
each transaction. In seeking the best price and execution for equity securities
traded only in the over-the-counter market, they normally deal directly with the
principal market-makers.
The subadvisers are governed in the selection of brokers and dealers and
the negotiation of brokerage commission rates (or the payment of net prices in
the case of debt securities) by the reliability and quality of the broker's or
dealer's services. Although some weight is given to the availability and value
of research and statistical assistance (discussed immediately below) furnished
by the broker or dealer to the subadviser, it is not always possible to place a
dollar value on such information and services. Because it is only supplementary
to the subadvisers' own research efforts, the receipt of research information
and statistical assistance is not expected to reduce their expenses measurably.
Research and Statistical Services Furnished by Brokers and Dealers
Research and statistical assistance typically furnished by brokers or
dealers includes analysts' reports on companies and industries, market
forecasts, and economic analyses. Brokers or dealers may also provide reports on
pertinent federal and state legislative developments and changes in accounting
practices; direct access by telephone or meetings with leading research analysts
throughout the financial community, corporate management personnel, industry
experts, leading economists and government officials; comparative performance
and evaluation and technical performance measurement services; portfolio
optimization software; availability of economic advice; quotation services; and
services from recognized experts on investment matters of particular interest to
the subadviser. In addition, the foregoing services may comprise the use of or
be delivered by computer systems whose software and hardware components may be
provided to the subadviser as part of the services. In any case in which the
foregoing systems can be used for both research and non-research purposes, the
subadviser makes an appropriate allocation of those uses and will permit brokers
and dealers to provide only the portion of the systems to be used for research
services.
Research and statistical services furnished by brokers and dealers handling
the Funds' transactions may be used by the subadvisers for the benefit of all of
the accounts managed by them and not all of such research and statistical
services may be used by the subadvisers in connection with the Funds.
43
<PAGE>
Relationship Between Brokerage Commissions and Research and Statistical Services
Furnished by Brokers and Dealers
Except as to the Global Balanced Fund, the subadvisers or the Funds will
not at any time make a commitment pursuant to an agreement with a broker because
of research services provided. Nor, except as set forth below, will John Hancock
or the subadvisers direct brokerage upon any prescribed basis to a broker
because of research services provided.The subadviser for each of the Small Cap
Value, Small/Mid Cap Value, Mid Cap Growth, and Mid Cap Value Funds may have an
internal procedure for allocating transactions, in a manner consistent with its
execution policy, to brokers that it has identified as providing superior
executions, research, or research related products or services which benefit its
advisory clients, including the Fund. In certain cases, the subadviser of the
Global Balanced Fund directs securities transactions for that Fund to particular
brokers, in recognition of research services the broker has provided, pursuant
to an understanding or agreement with the broker or pursuant to the subadviser's
own internal allocation procedures.
Evaluations of the overall reasonableness of any broker's commissions are
made by the subadvisers' traders for the Funds on the basis of their experience
and judgment. To the extent permitted by Section 28(e) of the Securities
Exchange Act of 1934, such traders are authorized to pay a brokerage commission
on a particular transaction in excess of what another broker might have charged
in recognition of the value of the broker's brokerage or research services. Such
authority is generally expected to be used very infrequently. The Mid Cap
Growth, Small/Mid Cap Value, Mid Cap Value, and Global Balanced Funds, however,
may be more likely to use such authority.
Brokerage Transactions in Foreign Markets
Brokerage transactions in securities of companies domiciled in countries
other than the United States are anticipated to be normally conducted on the
stock exchanges or other markets of those countries in which the particular
security is traded. Fixed commissions on foreign stock exchange transactions are
generally higher than negotiated commissions available in the United States.
Moreover, there is generally less government supervision and regulation of
foreign stock exchanges and broker-dealers than in the United States. Settlement
periods in non-U.S. markets may differ from the normal settlement period in the
United States.
Simultaneous Transactions with Other Accounts
The subadvisers also perform investment advisory services for a number of
other accounts and clients, none of which is given preference over the Trust in
allocating investment opportunities. When opportunities occur which are
consistent with the investment objective of more than one account, it is the
policy of each subadviser to avoid favoring any one account over another.
Accordingly, investment opportunities in such cases are allocated in a manner
deemed equitable by the subadvisers to the particular accounts involved. The
allocation may be based, for example, on such factors as the accounts'
respective investment objectives and then current investment and cash positions.
Subject to these requirements, Trust orders may be combined with orders of other
accounts or clients advised by any of the subadvisers at prices which are
approximately averaged.
Use of Brokers Who are Affiliated With a Subadviser
A Fund may place portfolio transactions through certain brokers who are
affiliated with the Fund's subadviser. The Trust has implemented special
procedures governing the circumstances of these transactions. In addition to
complying with any applicable provisions of the Trust's procedures, these
transactions must comply with all applicable legal requirements, including,
where applicable, Rule 17e-1 under the Investment Company Act. Among other
things, that rule requires the commissions or other compensation paid to the
affiliated broker to be reasonable and fair compared to those in similar
transactions between unrelated parties.
44
<PAGE>
Set forth below is information about transactions by each Fund with affiliated
brokers in reliance on Rule 17e-1 for each of the past three years:
<TABLE>
<CAPTION>
Amount of Commissions
Name Nature of Broker's Paid by Fund
of Affiliation with -------------------------------------------
Fund Affiliated Broker Fund's Sub-Adviser 1999 1998 1997
---- ----------------- ------------------ ---- ---- ----
<S> <C> <C> <C> <C> <C>
International Ord Minnett Group Ltd. Wholly-owned subsidiary of $ 34 $ 263 $ 122
Opportunities sub-adviser's parent
International Jardine Fleming & Co. Wholly-owned subsidiary of $ 710 $ 311 $ 295
Opportunities sub-adviser's parent
International Robert Fleming Wholly-owned subsidiary of $ 1,166 $ 1,018 $ 741
Opportunities Securities, Ltd. sub-adviser's parent
Mid Cap Value Neuberger Berman, LLC Dual operating division of $80,598 $366,985 $68,000
sub-adviser's parent
Large Cap Value CORE Goldman, Sachs & Co. Dual operating division of $ 96 - 0 - - 0 -
sub-adviser's parent
Small/Mid Cap CORE Goldman, Sachs & Co. Dual operating division of $ 120 - 0 - - 0 -
parent of sub-adviser
Emerging Markets Equity Morgan Stanley Asia Wholly-owned subsidiary of $ 2,779 - 0 - - 0 -
Limited sub-adviser's parent
Emerging Markets Equity Morgan Stanley Wholly-owned subsidiary of $ 3,276 - 0 - - 0 -
International Limited sub-adviser's parent
</TABLE>
For 1999, the total dollar amount of such transactions through affiliated
brokers as a percentage of all brokerage-type transactions was 4.9% for the
International Opportunities Fund, 15.8% for the Mid Cap Value Fund, .18% for the
Large Cap Value CORE Fund, .07% for the International Equity Fund, .02% for the
Small/Mid Cap CORE Fund, and 1.2% of the Emerging Markets Equity Fund. For 1999,
the total brokerage commissions on such transactions through affiliated brokers,
as a percentage of commissions paid on all brokerage-type transactions was 3.2%
for the International Opportunities Fund, 26.5% for the Mid Cap Value Fund, 3%
for the Large Cap Value CORE Fund, 1% for the Small/Mid Cap CORE Fund, and 3.3%
for the Emerging Markets Equity Fund.
CODES OF PERSONAL CONDUCT
The Funds (other than the Money Market Fund), John Hancock, and the Trust's
principal underwriter have adopted, and the Trustees have approved, codes of
conduct for their officers, directors and other personnel. Among other things
these codes regulate (although they do not absolutely prohibit) transactions by
such persons in securities of a type in which the Funds may and do invest. The
subadvisers have adopted codes of conduct that are similar to the Fund's except
that certain subadvisers may prohibit certain of their key personnel from
personal trading in certain types of securities such as initial public offerings
or private offerings.
FEATURES OF THE TRUST'S SHARES
The shares of beneficial interest of the Trust currently are divided into
33 series, each corresponding to one of the Trust's 33 Funds. The Trust has the
right to establish additional series and issue additional shares without the
consent of its shareholders.
If the holders of variable annuity contracts and variable life insurance
policies show minimal interest in any Fund, the Trust's Board of Trustees, by
majority vote, may eliminate the Fund or substitute shares of another investment
company. Any such action by the Board would be subject to compliance with any
requirements for governmental approvals or exemptions or for shareholder
approval. The holders of variable annuity contracts and variable life insurance
policies participating in any such Fund will be notified in writing of the
Trust's intention to eliminate the Fund and given 30 days to transfer amounts
from such Fund to other Funds without incurring any
45
<PAGE>
transaction fee. Amounts not transferred or withdrawn would automatically be
transferred, at the discretion of the Fund's management.
The assets received by the Trust for the issuance or sale of shares of each
Fund and all income, earnings, profits, and proceeds thereof are specifically
allocated to that Fund. They constitute the underlying assets of each Fund, are
segregated on the books of the Trust, and are to be charged with the expenses of
such Fund. Any assets which are not clearly allocable to a particular Fund or
Funds are allocated in a manner determined by the Board of Trustees. Accrued
liabilities which are not clearly allocable to one or more Funds would generally
be allocated among the Funds in proportion to their relative net assets before
adjustment for such unallocated liabilities.
Each issued and outstanding share in a Fund is entitled to participate
equally in dividends and distributions declared with respect to such Fund and in
the net assets of such Fund upon liquidation or dissolution remaining after
satisfaction of outstanding liabilities.
A dividend from the net investment income of the Money Market Fund will be
declared and distributed daily. Dividends from net investment income of the
other Funds will be declared and distributed monthly. The Trust will distribute
all of its net realized capital gains annually. Dividends and capital gains
distributions will normally be reinvested in additional full or fractional
shares of the Fund to which they relate and will be appropriately credited to
investment performance under the variable life insurance policies and variable
annuity contracts participating in that Fund.
The shares of each Fund, when issued, will be fully paid and
non-assessable, and will have no preference, preemptive, exchange or similar
rights. Shares do not have cumulative voting rights.
SHAREHOLDER MEETINGS AND VOTING RIGHTS
Under the Trust's Declaration of Trust, the Trust is not required to hold
an annual shareholders' meeting. Normally, for example, there will be no
shareholders meetings for the purpose of electing Trustees.
In addition, it is expected that the Trustees generally will elect their
own successors and appoint Trustees to fill any vacancy, so long as, after
filling the vacancy, at least two-thirds of the Trustees then in office have
been elected by the shareholders.
Notwithstanding the above if at any time less than a majority of Trustees
in office have been elected by the shareholders, the Trustees must call a
special shareholders' meeting promptly. Also the Trustees will promptly call a
meeting of shareholders for the purpose of voting upon the question of removal
of any Trustee or all of the Trustees, if requested in writing to do so by
holders of 10% or more of the outstanding shares. In this regard, whenever ten
or more shareholders who have been such for at least six months and who hold in
the aggregate either shares having a net asset value of at least $25,000 or at
least 1% of the outstanding shares, whichever is less, apply to the Trustees in
writing stating that they wish to communicate with other shareholders with a
view to obtaining signatures to a request for a shareholders' meeting, for
consideration of the removal of any or all of the Trustees and accompanied by
the material which they wish to transmit, the Trustees will within five business
days after receipt either afford to such applicants access to the Trust's
shareholder list or inform such applicants as to the approximate number of
shareholders of record, and the approximate cost of mailing the material. If the
Trustees elect the latter, the Trustees, upon written request of such
applicants, accompanied by the material to be mailed and the reasonable expenses
of mailing, shall promptly mail such material to all shareholders of record,
unless within five business days the Trustees shall mail to such applicants and
file with the SEC, together with a copy of the material to be mailed, a written
statement signed by at least a majority of the Trustees to the effect that, in
their opinion, either such material is misleading or in violation of applicable
law and specifying the basis of such opinion.
At any shareholders' meeting, all shares of the Trust of whatever class are
entitled to one vote, and the votes of all classes are cast on an aggregate
basis, except on matters where the interests of the Funds differ. Where the
interests of the Funds differ, the voting is on a Fund-by-Fund basis. Approval
or disapproval by the shareholders in one Fund on such a matter would not
generally be a prerequisite of approval or disapproval by shareholders in
another Fund; and shareholders in a Fund not affected by a matter generally
would not be entitled to vote on that
46
<PAGE>
matter. Examples of matters which would require a Fund-by-Fund vote are changes
in the fundamental investment policy of a particular Fund and approval of
investment management or sub-investment management agreements.
SALES AND REDEMPTIONS OF FUND SHARES
"Seed Money" Shares
Typically, when a new Fund is added to the Trust, John Hancock (or one of
its affiliates) initially purchases a substantial amount of that Fund's shares
to provide the new fund with a reasonable asset base with which to commence
operations. For example, the most recent such contributions of "seed money" have
been as follows:
"Seed Money" Date
Shares Purchased by of
Fund John Hancock Purchase
---- -------------- ----------
Aggressive Balanced $10,000,000 8/31/99
Equity Index 15,000,000 5/1/98
Large Cap Value CORE 5,000,000 8/31/99
Large Cap Aggressive Growth 10,000,000 8/31/99
Large/Mid Cap Value 5,000,000 8/31/99
Fundamental Mid Cap Growth 5,000,000 8/31/99
Mid Cap Blend 5,000,000 8/31/99
Small/Mid Cap CORE 5,000,000 5/1/98
Global Balanced 20,000,000 5/1/96
International Equity 10,000,000 8/31/99
International Opportunities II 15,000,000 5/1/98
Emerging Markets Equity 10,000,000 5/1/98
Bond Index 2,500,000 5/1/98
High Yield Bond 10,000,000 5/1/98
John Hancock (or its affiliate) may redeem these shares (and thus withdraw
its seed money investment) at some time. However, before withdrawing any part of
their interests in any Fund, John Hancock (or its affiliate) will consider any
possible adverse impact the withdrawal might have on that Fund.
Purchases and redemptions of seed money shares are made at the applicable
Fund's net asset value per share (with no additions or deductions for charges)
next computed after the purchase or redemption order is placed.
Shares Sold and Redeemed In Connection With Transactions Under Variable Annuity
Contracts and Variable Life Insurance Policies
Fund shares are sold at their net asset value as next determined after
receipt of net premiums by the Separate Account, without the addition of any
selling commission or sales load.
Shares are redeemed at their net asset value as next determined after
receipt of net surrender requests by the Separate Account. No fee is charged on
redemption. Redemption payments will usually be paid within seven days after
receipt of the redemption request, except that the right of redemption may be
suspended or payments postponed whenever permitted by applicable law and
regulations. Redemptions are normally made in cash, but the Trust reserves the
right, at its discretion, to make full or partial payment by assignment to the
appropriate Separate Account of portfolio securities at their value used in
determining the redemption price. In such cases, the Separate Account would
incur brokerage costs should it wish to liquidate these portfolio securities.
Trust shares are also sold and redeemed as a result of transfer requests,
loans, loan repayments, and similar Separate Account transactions, in each case
without any sales load or commission or at the net asset value per share
computed for the day as of which such Separate Account transactions are
effected.
47
<PAGE>
COMPUTING THE FUNDS' NET ASSET VALUE
The net asset value per share of each Fund is determined once daily, after
the declaration of dividends, if any, as of 4:00 p.m., New York City time, on
each business day the New York Stock Exchange ("Exchange") is open for regular
trading. For this purpose, however, certain derivative instruments may be valued
using prices as late as 4:15 p.m.
The net asset value per share of each Fund is determined by adding the
value of all portfolio securities and other assets, deducting all portfolio
liabilities, and dividing by the number of outstanding shares. All Trust
expenses will be accrued daily for this purpose.
Short-term investments with a remaining maturity of 60 days or less, and
all investments of the Money Market Fund, are valued at "amortized cost," which
approximates market value. This involves valuing a security at its cost and
thereafter assuming a constant amortization to maturity of any discount or
premium, regardless of the impact of fluctuating interest rates. While this
method provides certainty in valuation, it may result in periods during which
the value of an instrument, as determined by amortized cost, is higher or lower
than the price the Fund would receive upon the sale of the instrument.
The Board of Trustees has established procedures designed to stabilize the
Money Market Fund's price per share, as computed for the purpose of sales and
redemptions, at $10. There can be no assurance, however, that the Fund will at
all times be able to maintain a constant $10 net asset value per share. Such
procedures include review of the Fund's holdings at such intervals as is deemed
appropriate to determine whether the Fund's net asset value, calculated by using
available market quotations, deviates from $10 per share and, if so, whether
such deviation may result in material dilution, or is otherwise unfair to
existing shareholders. In the event that it is determined that such a deviation
exists, the Board of Trustees will take such corrective action as it regards as
necessary and appropriate. Such action may cause losses or gains to be recorded
for the Fund, including decreases or increases in the Fund's net asset value per
share.
Securities and covered call and put options that are listed on a stock
exchange are normally valued at the closing sales price. If there were no sales
during the day, they are normally valued at the last previous sale or bid price
reported, as are equity securities that are traded in the over-the-counter
market.
Non-exchange traded debt securities (other than certain short-term
investments) are valued on the basis of valuations furnished by a pricing
service which uses electronic data processing techniques, without exclusive
reliance upon quoted prices.
Any other security for which market quotations are not readily available,
and any other property for which valuation is not otherwise available, is valued
at fair value as determined in good faith by, or under the direction of, the
Board of Trustees.
Financial futures contracts, options thereon and options on stock indexes
are valued at the last trade price of the day. In the absence of a trade on a
given day, the value generally is used which is established by the exchange on
which the instrument is traded.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed at various times before the close
of business on each day on which the New York Stock Exchange is open. The values
of such securities used in computing net asset value per share are normally
determined as of such times. Trading of these securities may not take place on
every New York Stock Exchange business day and may take place on days which are
not business days in New York. The Trust calculates net asset value per share as
of the close of regular trading on the New York Stock Exchange on each day on
which that exchange is open. Therefore, such calculation does not take place
contemporaneously with the determination of the prices of many of the Funds'
securities used in such calculation. If events affecting the value of such
securities occur between the time when their price is determined and the time as
of which the Fund's net asset value is calculated, such securities may be valued
at fair value by or under the direction of the Board of Trustees.
48
<PAGE>
TAXES
The Trust intends that each Fund qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code ("Code"). This requires that
each Fund comply with certain requirements as to the nature of its income and
amounts of dividends and other distributions it pays. Also, in order to qualify
under Subchapter M, at the end of each quarter of a Fund's taxable year, (i) at
least 50% of the market value of the Fund's assets must be represented by cash
and cash items, U.S. Government securities, securities of other regulated
investment companies, and other securities, with such other securities limited,
in respect of any one issuer, to an amount that does not exceed 10% of the
voting securities of such issuer of 5% of the value of the Fund's total assets;
and (ii) not more than 25% of the value of its assets may be invested in the
securities (other than U.S. Government securities and securities of other RICs)
of any one issuer or two or more issuers which the Fund controls and which are
engaged in the same, similar or related trades or businesses.
The Trust also intends that each Fund comply with certain other
diversification requirements, promulgated under Section 817(h) of the Code.
Under these requirements, no more than 55% of the total value of the assets of
each Fund may be represented by any one investment, no more than 70% by any two
investments, no more than 80% by three investments and no more than 90% by four
investments. Generally, for these purposes, all securities of the same issuer
are treated as one investment. In the context of U.S. Government securities
(including any security that is issued, guaranteed or insured by the United
States or an instrumentality of the United States), each U.S. Government agency
or instrumentality is treated as a separate issuer.
Assuming the Funds qualify as regulated investment companies under
Subchapter M, they will not owe any income taxes. On the other hand, if a Fund
fails to qualify under Subchapter M, it may incur income tax liabilities, which
will negatively affect its investment performance.
Also, qualification under Subchapter M, as well as compliance with the
Section 817(h) diversification requirements, (among other things) are necessary
to secure the tax treatment intended for holders of variable annuity contracts
and variable life insurance policies that are supported by the Trust. Therefore,
any such failure to qualify under Subchapter M or to meet the diversification
standards under Section 817(h) could have serious adverse consequences for such
investors.
For a discussion of these and other tax implications of owning a variable
annuity contract or a variable life insurance policy for which the Fund serves
as the investment medium, please refer to the Prospectus for such contract or
policy attached at the front of this Prospectus.
Those Funds that invest substantial amounts of their assets in foreign
securities may be able to make an election to pass through to John Hancock,
JHVLICO or IPL any taxes withheld by foreign taxing jurisdictions on foreign
source income. Such an election will result in additional taxable income and
income tax to John Hancock. The amount of additional income tax, however, may be
more than offset by credits for the foreign taxes withheld, which are also
passed through.
INFORMATION ABOUT FUND PERFORMANCE
How Money Market Fund Yields Are Calculated
The Money Market Fund may advertise investment performance figures,
including its current yield and its effective yield.
The Money Market Fund's yield is its current investment income, expressed
in annualized terms. The current yield is based on a specified
seven-calendar-day period. It is computed by (1) determining the net change
(exclusive of capital changes) in the value of a hypothetical pre-existing
account having a balance of one share at the beginning of the period, (2)
dividing the net change in account value by the value of the account at the
beginning of the base period to get the base period return, then (3) multiplying
the base period return by 52.15 (365 divided by 7). The resulting yield figure
is carried to the nearest hundredth of one percent.
49
<PAGE>
The calculations include the value of additional shares purchased with any
dividends paid on the original share and the value of dividends declared on both
the original share and any such additional shares. The capital changes excluded
from the calculation are realized capital gains and losses from the sale of
securities and unrealized appreciation and depreciation.
Compound (effective) yield for the Fund will be computed by dividing the
seven-day annualized yield (determined as above) by 365, adding 1 to the
quotient, raising the sum to the 365th power, and subtracting 1 from the result.
For the seven-day period ending December 31, 1999, the Money Market Fund's
current yield was 5.74%; its effective yield was 5.91%.
The Fund's yield will fluctuate depending upon market conditions, the type,
quality, and maturity of the instruments in the Fund, and its expenses.
Charges Under Variable Life Insurance and Variable Annuity Policies
Yield and total return quotations do not reflect any charges imposed on any
Separate Account or otherwise imposed pursuant to the variable life insurance
policies and variable annuity contracts that are supported by the Funds. (Those
charges are discussed in the prospectus for such policies or contracts.)
Therefore, the yield or total return of any Fund is not comparable to that of a
publicly available fund. Nor should yield or total return quotations be
considered representative of the Fund's yield or total return in any future
period.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds of Washington, D.C., advises the Trust on
certain legal matters relating to the Federal securities laws.
REPORTS TO CONTRACTHOLDERS
Annual and semi-annual reports containing financial statements of the
Trust, as well as any materials soliciting voting instructions for Trust shares,
will be sent to variable life insurance and annuity contractowners having an
interest in the Trust.
50
<PAGE>
APPENDIX A
----------
CORPORATE BOND RATINGS
Moody's Investors Service, Inc., describes its ratings for corporate bonds
as follows:
. Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally
referred to as "gilt edge." Interest payments are protected by a
large or by an exceptionally stable margin, and principal is secure.
While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
. Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are
generally known as high grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large as in
Aaa securities, or fluctuation of protection elements may be of
greater amplitude, or there may be other elements present which make
the long term risks appear somewhat larger than in Aaa securities.
. Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate but
elements may be present which suggest a susceptibility to impairment
some time in the future.
. Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
. Bonds which are rated Ba have speculative elements and their future
cannot be considered as well assured. The protection of interest and
principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Bonds in
this class are characterized by uncertainty of position.
. Bonds which are rated B generally lack characteristics of a desirable
investment; assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of
time may be small.
. Bonds which are rated Caa are of poor standing. Issues may be in
default or there may be present elements of danger with respect to
principal or interest.
. Bonds which are rated Ca are speculative in a high degree. They are
often in default or have other marked shortcomings.
. Bonds which are rated C are the lowest rated class of bonds. They can
be regarded as having extremely poor prospects of ever attaining any
real investment standing.
Standard & Poor's Corporation describes its ratings for corporate bonds as
follows:
. AAA - - This is the highest rating assigned by Standard & Poor's to a
debt obligation and indicates an extremely strong capacity to pay
principal and interest.
51
<PAGE>
. AA -- Bonds rated AA also qualify as high-quality obligations.
Capacity to pay principal and interest is very strong, and in the
majority of instances, they differ from AAA issues only in small
degree.
. A -- Bonds rated A have a strong capacity to pay principal and
interest, although they are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions.
. BBB -- Bonds rated BBB are regarded as having an adequate capacity to
pay principal and interest. Whereas they normally exhibit protection
parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay principal and
interest for bonds in this category than for bonds in the A category.
. BB, B, CCC, CC, C -- Bonds rated in these categories are regarded, on
balance, as predominantly speculative with respect to capacity to pay
interest and repay principal in accordance with the terms of the
obligation. BB indicates the lowest degree of speculation and C the
highest degree of speculation. While this debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions.
. C1 -- This rating is reserved for income bonds on which no interest
is being paid.
. D -- Bonds rated D are in default and payment of interest and/or
repayment of principal is in arrears.
52
<PAGE>
[LOGO OF JOHN HANCOCK]
ANNUAL REPORT [LOGO OF IA]
December 31, 1999 [LOGO OF ALLIANCE CAPITAL]
[LOGO OF THE BOSTON COMPANY]
[LOGO OF BRINSON PARTNERS]
New opportunities. [LOGO OF GOLDMAN SACHS]
Proven strategies. [LOGO OF INVESCO]
[LOGO OF JPMORGAN]
[LOGO OF JANUS]
[LOGO OF MELLON]
[LOGO OF MORGAN STANLEY DEAN WITTER]
[LOGO OF NEUBERGER BERMAN]
[LOGO OF OPPENHEIMERFUNDS]
[LOGO OF SCUDDER INVESTMENT]
[LOGO OF SSGA]
[LOGO OF T.ROWEPRICE]
[LOGO OF WELLINGTON MANAGEMENT]
INSURANCE FOR THE UNEXPECTED.
INVESTMENTS FOR THE OPPORTUNITIES.(R) VARIABLE SERIES TRUST
[LOGO OF JOHN HANCOCK]
<PAGE>
Dear Shareholder,
Quality that endures over time is not created over night. It takes planning,
discipline, and commitment. No one understands this better than we do. John
Hancock was one of the first insurance companies in America to recognize the
appeal and value of variable product portfolios. Today, we offer
state-of-the-art variable life and variable annuity products that are critical
components of the financial portfolios of our life insurance and annuity
customers. Whether purchased for protection, accumulation, or retirement
planning, our variable life and variable annuity products are designed and
managed to offer tremendous value to all of our customers.
[PHOTO]
Thomas J. Lee,
President and Vice Chairman
We have carefully built an investment structure that's ideally suited to meet
the needs of all of our customers -- the Variable Series Trust (VST). The VST
holds funds that are available with our variable life and variable annuity
products. John Hancock has formed relationships with many world class investment
firms to manage the various fund choices within the VST. We also oversee the
management of these funds to ensure that they remain true to the strategies and
investment styles that you, our shareholders, have selected. We believe a real
value-added component in making the VST's investment structure work lies in the
ongoing monitoring of investment performance and style.
Nothing is more important to us than providing you with the best possible
protection and investment solutions available -- and the quality customer
service that's essential to maintaining your trust in us. We look forward to the
opportunity to continue our relationship with you as we enter the new millennium
together. You have our promise that we will continue to manage and monitor the
Variable Series Trust with our most important asset in mind -- you, our
shareholder. Thank you for your confidence in John Hancock.
[PHOTO]
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: Annual Review 1999
John Hancock Economic Research
1999 was a terrific year for everybody except bond investors, who saw
interest rates climb steadily throughout the year. The economy continued to
defy gravity as growth far exceeded expectations, the unemployment rate
declined to its lowest level in 30 years, and inflation remained under wraps.
Continued strong growth above the economy's perceived speed limit spooked
fixed income investors. Their inflation fears were heightened by tightening
labor markets, the yawning current account deficit, and surging oil prices.
So far the markets' worst fears have not materialized. Commodity prices in
general have risen only slightly and higher energy prices have not infected
core prices materially. Wage rates have decelerated rather than accelerated.
While the dollar has weakened substantially against the yen, it has fared much
better against most other currencies and foreign capital continues to flow
easily into the US.
Nevertheless, the general consensus has emerged that the best times are most
likely behind us and that inflationary forces are gathering. In response the
Fed pushed up short term interest rates three times last year for a total of
75 basis points while jawboning debt markets to boost their long term rates
and steepen the yield curve. The Fed ended the year clearly on the inflation
watch and in a preemptive mode. They even saw a dark side to surging
productivity growth: it was pushing up equity prices too high and creating an
overly optimistic environment on both Wall Street and Main Street.
Strong growth led by consumer and investment spending
As in the past few years, the economy was led by continuing strong consumer
spending and business investment. Consumption growth rose for the fourth year
in a row, topping 5% for the year and underpinned by strong income growth, low
inflation, and continuing gains in household net worth.
Business fixed investment remained strong, although decelerating somewhat
from 1998, primarily because of weak business construction activity. Inventory
restocking also lagged as firms had difficulty maintaining inventories at
desirable levels in the middle of the year.
Residential investment had another strong year although housing activity
began to taper off toward year end, under pressure from rising mortgage rates.
Housing starts set new records in 1999 while inventories of unsold homes
declined to historically low levels. Nevertheless, housing prices remained
reasonably well behaved, with some emerging speculative activity in several
coastal markets associated with high tech.
Imports surged as domestic production could not keep up with domestic demand,
leading to a nearly 50% increase in the trade deficit. With the exception of
oil, import prices remained virtually unchanged over the year, helping to keep
a cap on inflationary pressures. Meanwhile, economies overseas began to show
signs of recovery and this was reflected in improving US exports, although not
enough to overcome the surge in imports.
Few signs of inflation
Productivity growth continued to accelerate throughout the year, as it
approached 3% in the fourth quarter, more than double the average a decade
ago. The combination of tight labor markets and rapid technological change
propelled the surge in productivity and helped keep a lid on inflation.
Prices remained remarkably well behaved throughout the year, even though
above trend economic growth raised concerns of inflation's reemergence.
Consumer prices rebounded slightly with jumps in oil and tobacco prices, but
core prices continued their steady decline. Producer prices rebounded more
abruptly on the heels of higher energy prices and tightening commodity
markets. Overall, prices showed few signs of accelerating during the year.
Labor markets tightened a bit as the unemployment rate declined to 4.1% of
the labor force by the end of the year, a rate not seen since the 1960s. The
economy created more than 2 million new jobs last year and employers showed
more creativity in filling them by drawing new workers into the labor force
from immigrants, the unemployed, and those outside the labor force. Despite
such tight labor market conditions, upward momentum in wages evaporated last
year, as wage growth handily beat inflation rates and workers continued to
value job security over even larger wage gains.
Interest rates rose steadily throughout the year. With strong productivity
growth boosting the real rate of return on capital, real interest rates rose
above 4%, a full percentage point above their long term average. In addition,
fear of a resurgence in inflation on the heels of continued strong economic
growth pushed up the inflation premium which led to higher nominal interest
rates.
Three quarter-point boosts in the Fed Funds rate ratified those increases and
the Fed clearly indicated that it would continue raising rates until the
economy slowed to a more sustainable growth rate, somewhat below 4%. It
appears as if the Fed is finally prepared to start restricting access to the
punch bowl in the hopes of extending the longest party on record.
1
<PAGE>
Inception: March 29, 1986
Growth & Income Fund
Independence Investment Associates, Inc. Paul F. McManus
During the fourth quarter of 1999 the stock market rebounded strongly from
the third quarter levels led primarily by the technology sector. The Growth
and Income Fund was up 12.31% in the quarter compared to 14.88% the S&P 500.
With the appreciation in technology stocks during the year, the sector has
grown to nearly 30% of the S&P500. The stock market advance was also very
narrow with just a few stocks driving returns. Growth as a style did far
better than value in 1999. Within the technology sector, there was a wide
disparity in performance. The highest P/E issues did better than more
reasonably priced issues. We did hold a market weighting in technology stocks
that fit our criteria of selecting stocks that have good value and improving
fundamental trends, but this strategy did not work as well in 1999. The stocks
that did best were lofty P/E technology stocks like Qualcomm, Nextel, and
AirTouch Communications. We held stocks like Cisco Systems, Hewlett Packard,
and Dell Computer which fit our investment criteria more appropriately.
The economic environment remains positive and we expect solid growth over the
near term. Rising interest rates will likely impact the auto and housing
sectors most negatively. We expect other non-US economies to grow at a faster
pace over the next year particularly as Asia recovers further. This should
benefit stock market sectors such as the basic materials industry companies in
the forest product, capital goods, and consumer areas. The Growth and Income
Fund has representation in most of those sectors in order to benefit from this
environment. Regardless of trends, we will continue to adhere to our
philosophy of selecting stocks that have attractive value and improving trends
while managing risk through individual stock selection and industry
diversification.
[GRAPH]
Historical Fund Return
Growth and S&P 500 Growth and S&P 500
Date Income Fund Index Date Income Fund Index
6/30/89 10,000 10,000 1/31/95 18,220 18,828
7/31/89 10,592 9,329 2/28/95 18,939 18,879
8/31/89 10,826 9,449 3/31/95 19,359 19,670
9/30/89 10,926 9,698 4/30/95 19,923 19,601
10/31/89 10,840 9,458 5/31/95 20,586 20,464
11/30/89 10,874 10,381 6/30/95 21,055 20,842
12/31/89 11,082 10,308 7/31/95 21,727 21,559
1/31/90 10,434 10,275 8/31/95 21,869 21,766
2/28/90 10,608 9,347 9/30/95 22,816 21,975
3/31/90 10,917 8,887 10/31/95 22,667 22,298
4/30/90 10,749 8,854 11/30/95 23,623 22,873
5/31/90 11,508 9,425 12/31/95 23,961 22,967
6/30/90 11,679 9,683 1/31/96 24,599 21,945
7/31/90 11,759 10,111 2/29/96 24,917 22,410
8/31/90 11,106 10,835 3/31/96 25,235 23,670
9/30/90 10,598 11,093 4/30/96 25,519 24,318
10/31/90 10,554 11,124 5/31/96 26,110 26,164
11/30/90 11,238 11,600 6/30/96 26,253 25,651
12/31/90 11,548 11,070 7/31/96 25,013 27,244
1/31/91 12,067 11,588 8/31/96 25,609 27,465
2/28/91 12,871 11,860 9/30/96 26,798 26,322
3/31/91 13,172 11,665 10/31/96 27,453 27,894
4/30/91 13,166 11,822 11/30/96 29,280 29,606
5/31/91 13,678 11,344 12/31/96 28,776 30,927
6/30/91 13,011 12,641 1/31/97 30,257 33,383
7/31/91 13,460 12,406 2/28/97 30,423 31,526
8/31/91 13,748 12,564 3/31/97 29,238 33,253
9/30/91 13,581 12,318 4/30/97 30,655 32,143
10/31/91 13,781 12,677 5/31/97 32,318 33,631
11/30/91 13,302 12,745 6/30/97 33,592 34,209
12/31/91 14,546 12,560 7/31/97 36,594 34,589
1/31/92 14,292 13,066 8/31/97 34,740 37,083
2/29/92 14,461 12,803 9/30/97 36,761 38,982
3/31/92 14,218 12,950 10/31/97 35,378 39,375
4/30/92 14,669 12,996 11/30/97 36,709 38,698
5/31/92 14,813 13,434 12/31/97 37,348 40,270
6/30/92 14,704 13,610 1/31/98 37,752 39,841
7/31/92 14,706 13,710 2/28/98 40,833 34,081
8/31/92 14,910 13,895 3/31/98 43,117 36,264
9/30/92 15,077 14,194 4/30/98 43,236 39,214
10/31/92 15,051 13,846 5/31/98 42,764 41,590
11/30/92 15,637 14,220 6/30/98 44,579 43,987
12/31/92 15,841 14,267 7/31/98 44,059 45,826
1/31/93 16,004 14,199 8/31/98 37,295 44,402
2/28/93 16,228 14,740 9/30/98 39,208 46,178
3/31/93 16,731 14,631 10/31/98 42,703 47,967
4/30/93 16,284 14,928 11/30/98 45,260 46,834
5/31/93 16,707 14,788 12/31/98 48,645 49,434
6/30/93 16,872 14,970 1/31/99 50,277 47,890
7/31/93 16,779 15,471 2/28/99 48,716 47,653
8/31/93 17,456 15,054 3/31/99 50,158 46,347
9/30/93 17,486 14,399 4/30/99 52,271 49,280
10/31/93 17,785 14,586 5/31/99 50,747 50,282
11/30/93 17,626 14,824 6/30/99 54,246 53,244
12/31/93 17,952 14,458
1/31/94 18,486 14,936
2/28/94 17,948 15,544
3/31/94 17,252 15,170
4/30/94 17,552 15,517
5/31/94 17,619 14,947
6/30/94 17,300 15,166
7/31/94 17,767 15,560
8/31/94 18,428 16,164
9/30/94 17,884 16,642
10/31/94 18,169 17,126
11/30/94 17,566 17,803
12/31/94 17,853 18,221
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------
% of six months ago
Investments % of investments
Microsoft Corp. 5.6% 4.7%
General Electric Co. 4.7% 3.8%
Cisco Systems, Inc. 3.6% 1.6%
Citigroup, Inc. 3.2% 3.2%
Intel Corp. 2.5% 2.5%
United Technologies Corp. 2.4% 2.8%
American Online, Inc. 2.1% 1.0%
MCI WorldCom, Inc. 2.1% 2.2%
Warner-Lambert Co. 2.0% N/A
Time Warner, Inc. 1.9% 1.3%
Average Annual Total Returns*
------------------------------------------------------------------------
Growth & Income S&P 500* MorningStar
Fund Index Peer Group+
----------- ------------- ------------
1 Year 16.23% 21.04% 18.80%
3 Years 25.25 27.56 24.29
5 Years 25.93 28.55 25.37
10 Years 17.70 18.20 16.95
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------
% of % of
Investments Investments
Technology 30.1% Retail 6.6%
Financial 13.2% Consumer Cyclical 6.2%
Capital Equipment 12.5% Energy 5.7%
Health Care 8.8% Consumer Staple 3.1%
Utility 8.4% Basic Material 2.7%
*Total returns are for the periods ended December 31, 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.
."Standard & Poors 500" is a trademark of the McGraw-Hill Companies, Inc. and
has been licensed for use by John Hancock Life Insurance Company. The product
is not sponsored, endorsed, fold or promoted by Standard & Poor's and Standard
and Poor's makes no representation regarding the advisability of investing in
the product.
+Source: MorningStar, Inc. Data as of 12/31/99. Although gathered from reliable
sources, data completeness and accuracy cannot be guaranteed. Represents an
average annual total return for all variable annuity and life sub-accounts
within the MorningStar variable universe having a Large Blend investment style.
2
<PAGE>
Inception: May 1, 1996
Equity Index Fund
State Street Global Advisors Management Team
The S&P 500 came roaring back in the fourth quarter, posting a gain of
14.88%. This compares with the third quarter's loss of 13.75%. For all of
1999, the S&P rose 21.04%. This is the fifth straight year the index has risen
by more than 20%. To put that in perspective, the previous high for
consecutive 20% years was two. The index had provided a compound return of
over 250% over the last 5 years.
Small cap stocks narrowly outperformed the S&P in 1999. The Russell 2000 rose
21.26%, besting the S&P for the first time since 1993. Large cap growth stocks
outperformed their value counterparts by 15.53% (28.25% vs. 12.72%).
The index was narrow again this year. The top 30 names provided all of the
index return. The technology sector accounted for approximately 75% of the
benchmark return. Microsoft rose 68%, and Qualcomm rose 350% after entering
the index in July. Technology now accounts for nearly 30% of the S&P 500
Index. The top ten names in the index account for more than 25% on the index
capitalization.
The Fund returned 21.08% in 1999, besting the index by 5 basis points. Since
State Street Global Advisors began managing the fund in May 1997, the fund has
provided an annualized return of 27.25%.
The 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 security in order to provide returns close to the index
return.
[GRAPH]
Historical Fund Return
Equity Index Fund S&P 500* Index
04/01/96 10,000 10,000
05/31/96 10,210 10,258
06/28/96 10,231 10,300
07/31/96 9,825 9,842
08/30/96 9,971 10,050
09/30/96 10,509 10,615
10/31/96 10,787 10,906
11/29/96 11,561 11,734
12/31/96 11,423 11,504
01/31/97 12,133 12,218
02/28/97 12,221 12,317
03/31/97 11,736 11,805
04/30/97 12,409 12,510
05/30/97 13,119 13,278
06/30/97 13,727 13,870
07/31/97 14,821 14,971
08/29/97 13,993 14,139
09/30/97 14,756 14,913
10/31/97 14,267 14,415
11/28/97 14,887 15,082
12/31/97 15,169 15,342
01/01/98 15,336 15,512
02/27/98 16,441 16,631
03/31/98 17,280 17,482
04/30/98 17,455 17,658
05/29/98 17,151 17,355
06/30/98 17,850 18,060
07/31/98 17,664 17,867
08/31/98 15,096 15,284
09/30/98 16,067 16,263
10/30/98 17,369 17,586
11/30/98 18,419 18,652
12/31/98 19,484 19,727
01/29/99 20,296 20,552
02/26/99 19,669 19,913
03/31/99 20,464 20,710
04/30/99 21,252 21,512
05/28/99 20,743 21,004
06/30/99 21,904 22,170
07/31/99 21,220 21,477
08/31/99 21,115 21,371
09/30/99 20,541 20,785
10/31/99 21,833 22,101
11/30/99 22,274 22,550
12/31/99 23,592 23,878
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Microsoft Corp. 4.7% 4.0%
General Electric Co. 4.0% 3.2%
Cisco Systems, Inc. 2.7% 1.8%
Wal-Mart Stores, Inc. 2.4% 1.9%
Aim Stic Prime Fund 2.4% 2.5%
Exxon Mobil Corp. 2.2% 1.6%
Intel Corp. 2.1% 1.7%
Lucent Technologies, Inc. 1.8% 1.8%
Prime Obligation Fund 1.8% 0.8%
International Business Machines Corp. 1.5% 2.0%
Average Annual Total Returns*
------------------------------------------------------------------------------
Equity Index S&P 500* MorningStar
Fund(1) Index Peer Group+
---------------------- ----------------------- -------------
1 Year 21.08% 21.04% 18.80%
3 Years 27.35 27.56 24.29
Since Inception 26.36 26.79 N/A
(5/1/96)
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------------
% of %of
investments investments
Technology 29.9% Retail 6.6%
Financial 16.5% Consumer Cyclical 5.7%
Capital Equipment 8.8% Consumer Staple 5.5%
Health Care 8.7% Energy 5.3%
Utility 8.7% Basic Material 2.8%
(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 $250,000 in 1997.
* Total returns are for the period ended December 31, 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.
. "Standard & Poor's 500" is a trademark of The McGraw-Hill Companies, Inc.
and has been licensed for use by John Hancock 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all the variable annuity and
life sub-accounts within the Morningstar variable universe having a Large
Blend investment style.
3
<PAGE>
Inception: May 1, 1996
Large-Cap Value Fund T. Rowe Price Associates, Inc. Brian C. Rogers
In terms of overall market environment, 1999 was a year characterized by both
a pronounced investor preferences for growth stocks and an advance led by a
relatively small number of companies. Most of the excitement centered on the
Nasdaq Composite dominated by technology stocks, which enjoyed the lion's
share of gains last year. The major factor behind our lagging relative
performance was our underweighting in technology, a sector that nearly doubled
in value in 1999. We would not normally expect to hold large positions in this
sector, since the lofty valuations of most technology shares exclude them as
candidates for purchase.
The Fund benefited from several companies involved in merger and acquisition
activities. Our winners included BCE, Citigroup, Reynolds Metals, Dow Jones,
and U.S. West. However, other solid companies were disappointing, including
our holdings in Bank One, National City, Heinz, and Waste Management, which
struggled through the year and largely offset our more profitable investments.
We took advantage of market volatility by adding new positions and beefing up
existing holdings. Among our purchases were Disney, American Home Products,
Lockheed Martin, Unilever, and Xerox. In our view, these companies possess far
more value and appreciation potential than the market is currently giving them
credit for.
We expect the Fed to maintain its monetary stance in favor of tightening with
a view toward restraining inflation in a rapidly growing economy. While the
economic news and low rate of inflation continue to be positive, it's
difficult to envision an even more positive environment for stocks than we
have so far experienced. These factors prompt us to remain cautious in our
expectations for 2000. However, since so many sectors were left behind in the
great bull market of the past couple of years, many interesting opportunities
have become available in the midst of the general euphoria.
[GRAPH]
Historical Fund Return
Russell 1000 Large-Cap
Value Index Value Fund
04/01/96 10,000 10,000
05/31/96 10,125 10,190
06/28/96 10,133 10,255
07/31/96 9,750 9,977
08/30/96 10,029 10,186
09/30/96 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
01/31/97 12,024 11,699
02/28/97 12,201 11,979
03/31/97 11,762 11,724
04/30/97 12,256 12,016
05/30/97 12,941 12,582
06/30/97 13,496 13,059
07/31/97 14,511 13,805
08/29/97 13,994 13,447
09/30/97 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
01/01/98 15,283 14,538
02/27/98 16,312 15,249
03/31/98 17,310 15,954
04/30/98 17,426 15,869
05/29/98 17,167 15,598
06/30/98 17,387 15,561
07/31/98 17,081 15,106
08/31/98 14,539 13,634
09/30/98 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
01/29/99 18,069 15,599
02/26/99 17,814 15,470
03/31/99 18,183 15,889
04/30/99 19,881 17,600
05/28/99 19,662 17,469
06/30/99 20,233 17,932
07/31/99 19,641 17,537
08/31/99 18,912 17,003
09/30/99 18,251 16,393
10/31/99 19,301 16,973
11/30/99 19,151 16,678
12/31/99 19,243 16,523
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Exxon Mobil Corp. 3.5% 1.6%
International Paper Co. 2.1% 1.6%
SBC Communications Inc. 2.0% 2.4%
BP Amoco plc 1.9% 1.7%
Mellon Financial Corp. 1.8% N/A
Atlantic Richfield Co. (ARCO) 1.8% 1.5%
GTE Corp. 1.8% 1.7%
American Home Products Corp. 1.7% 1.6%
Alltel Corp. 1.7% 2.0%
Citigroup, Inc. 1.6% 1.4%
Average Annual Total Returns*
------------------------------------------------------------------------------
Large-Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
---------------------- ----------------------- --------------
1 Year 3.28% 7.35% 7.53%
3 Years 13.20 18.83 15.33
Since Inception 14.67 19.54 N/A
(5/1/96)
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------------
% of %of
investments investments
Financial 17.2% Consumer Cyclical 10.1%
Energy 15.4% Capital Equipment 8.3%
Utility 13.1% Health Care 5.0%
Basic Material 10.8% Technology 4.3%
Consumer Staple 10.7% Transportation 2.6%
* Total returns are for the period ended December 31, 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Large Value
investment style.
4
<PAGE>
Inception: August 31, 1999
Large-Cap Value Core Fund Goldman Sachs Asset Management Clark/Jones/Pinter
For the period since inception (August 31, 1999) through December 31, 1999,
the Large Cap Value CORE Fund returned 3.58% at net asset value, outperforming
its benchmark, the Russell 1000 Value Index, which returned 1.75%.
The economy continued to advance over the year, as evidenced by U.S. GDP
growth running in recent months at 5% or better on an annualized basis, a 31-
year high in consumer confidence and a 29-year low in the domestic jobless
rate. The Federal Reserve Board, however, mindful of the risks associated with
a shrinking labor supply, raised interest rates three times during the year,
resulting in a total increase of the Fed Funds rate of 0.75% in 1999.
The year proved exceptional for the U.S. stock indices. While the S&P 500
Index and Russell 1000 Index had annual returns of 21.04% and 20.9%,
respectively, the Russell 2000 Index, which severely lagged larger cap indices
earlier in the year, posted a 21.26% return, ending the year ahead of the S&P
500 Index for the first time in six years. 1999 also witnessed record-setting
spreads between returns for growth and value, as the Index's return of 7.34%
significantly underperformed the 33.15% return of the Russell 1000 Growth
Index.
Our quantitative process seeks out stocks with good momentum that also
appear to be good values. We prefer stocks favored by fundamental research
analysts, and less volatile stocks with lower-than-average probability of
reporting disappointing earnings. Over the long term, these factors have led
to excess returns, although they typically do not all work well at the same
time. During 1999, our investment themes produced mixed results in the Russell
1000 Value universe. The momentum theme contributed greatly towards returns,
while the value theme, contrary to long-term averages, detracted greatly from
returns. CORE's preference for stocks that appear to be good values had the
biggest negative impact on returns, indicating the market's strong distaste
for value. The low risk and research themes were flat during the year.
[GRAPH]
5
<PAGE>
Inception: March 29, 1986
Large-Cap Growth Fund
Independence Investment Associates, Inc. Mark Lapman
The Large-Cap Growth Fund returned a very strong 17.78% in the fourth
quarter, as growth stocks once again outperformed. For the year, your Fund
returned 24.07%. Average annual returns for the past five years are now
28.67%. 1999 can be summed up in one word: technology. Investors continue to
bid up prices of the most expensive technology stocks that have impressive
fundamentals. Growth managers who take lots of risk in a few names were
rewarded in 1999 with truly outstanding returns. Our diversified, risk
controlled approach and focus on relative value allowed us to have strong
returns in 1999 but we could not keep pace with more risk-taking competitors.
Top performers in your Fund this quarter included technology stocks like
Oracle, Cisco Systems and Teradyne as well as health care companies Warner
Lambert and Genentech. We remain focused on finding strong growth companies
that are reasonably priced and controlling the risk in your Fund during this
period of excessive valuation.
The economic environment remains positive, despite the Fed's expected rate
increases, with strong consumer confidence and spending continuing. Inflation
has remained at bay despite a doubling of oil prices in 1999 and continued low
unemployment. During the past year, investor cautiousness around Y2K has
resulted in more inflows into money market funds than equity mutual funds for
the first time since the 1990/91 recession. S&P 500 profit growth is expected
to maintain its double digit pace. This environment bodes well for a continued
strong stock market next year. However, we do remain concerned with overall
valuation of the market and believe our diversified Funds and strong sell
discipline will help protect you in the event of a pull back in the market.
[GRAPH]
Historical Fund Return
Large-Cap Large-Cap
Growth Fund Growth Benchmark(1)
12/29/89 10,000 10,000
01/31/90 9,398 9,329
02/28/90 9,540 9,449
03/30/90 9,785 9,698
04/30/90 9,666 9,458
05/31/90 10,347 10,381
06/29/90 10,529 10,308
07/31/90 10,583 10,275
08/31/90 10,036 9,347
09/28/90 9,646 8,887
10/31/90 9,657 8,854
11/30/90 10,328 9,425
12/31/90 10,692 9,683
01/31/91 11,194 10,111
02/28/91 11,963 10,835
03/28/91 12,331 11,093
04/30/91 12,363 11,124
05/31/91 12,898 11,600
06/28/91 12,274 11,070
07/31/91 12,670 11,588
08/30/91 12,927 11,860
09/30/91 12,711 11,665
10/31/91 12,771 11,822
11/27/91 12,324 11,344
12/31/91 13,413 12,641
01/31/92 13,209 12,406
02/28/92 13,357 12,564
03/31/92 13,119 12,318
04/30/92 13,533 12,677
05/29/92 13,689 12,745
06/30/92 13,579 12,560
07/31/92 14,065 13,066
08/31/92 13,802 12,803
09/30/92 13,939 12,950
10/30/92 13,956 12,996
11/30/92 14,473 13,434
12/31/92 14,746 13,610
01/29/93 14,885 13,710
02/26/93 15,157 13,895
03/31/93 15,616 14,194
04/30/93 15,053 13,846
05/28/93 15,504 14,220
06/30/93 15,730 14,267
07/30/93 15,609 14,199
08/31/93 16,286 14,740
09/30/93 16,489 14,631
10/29/93 16,737 14,928
11/30/93 16,554 14,788
12/31/93 16,782 14,970
01/31/94 17,292 15,471
02/28/94 16,756 15,054
03/31/94 16,214 14,399
04/29/94 16,532 14,586
05/31/94 16,479 14,824
06/30/94 16,232 14,458
07/29/94 16,638 14,936
08/31/94 17,220 15,544
09/30/94 16,704 15,170
10/31/94 16,863 15,517
11/30/94 16,371 14,947
12/30/94 16,617 15,166
01/31/95 16,928 15,560
02/28/95 17,569 16,164
03/31/95 17,967 16,642
04/28/95 18,411 17,126
05/31/95 19,038 17,803
06/30/95 19,358 18,221
07/31/95 19,985 18,828
08/31/95 20,138 18,879
09/29/95 20,955 19,670
10/31/95 20,714 19,601
11/30/95 21,574 20,464
12/29/95 21,875 20,842
01/31/96 22,388 21,559
02/29/96 22,652 21,766
03/29/96 22,939 21,975
04/30/96 23,325 22,298
05/31/96 23,840 23,077
06/28/96 23,813 23,109
07/31/96 22,230 21,755
08/30/96 22,940 22,316
09/30/96 24,344 23,941
10/31/96 24,524 24,086
11/29/96 26,304 25,894
12/31/96 25,871 25,387
01/31/97 27,352 27,167
02
Top Ten Holdings (as of December 31, 1999)
-----------------------------------------------------------------------------
% of six months ago
investments % of investments
Microsoft Corp. 6.3% 6.1%
Cisco Systems, Inc. 5.9% 3.5%
General Electric Co. 4.5% 4.7%
Intel Corp. 4.1% 4.3%
America Online, Inc. 3.4% 2.2%
Lucent Technologies, Inc. 2.9% 3.9%
MCI WorldCom, Inc. 2.9% 2.8%
Oracle Corp. 2.9% N/A
Home Depot, Inc. 2.3% 2.7%
Dell Computer Corp. 2.2% 1.4%
Average Annual Total Returns*
-----------------------------------------------------------------------------
Large-Cap Large-Cap Growth MorningStar
Growth Fund Benchmark(1) Peer Group+
----------- ---------------- ------------
1 Year 24.07% 33.16% 43.20%
3 Years 31.34 34.07 33.33
5 Years 28.67 32.18 29.77
10 Years 19.34 19.86 18.92
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------------
% of %of
investments investments
Technology 46.8% Financial 5.4%
Capital Equipment 13.1% Consumer Staple 3.2%
Health Care 12.5% Utility 2.9%
Retail 7.3% Basic Material 1.6%
Consumer Cyclical 5.7% Governmental 1.2%
(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
present.
* Total returns are for the period ended December 31, 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Large-Growth
investment syle. Prior to May 1996 (concurrent with the Fund's strategy
change), the peer group represents the Large Blend investment style.
6
<PAGE>
Inception: August 31, 1999
Large-Cap Aggressive Growth Fund
Alliance Capital Management L.P. J. Fogarty/A. Harrison
The Fund had a net return of 20.18 % for the year ending December 31, 1999.
The strong absolute performance was due to excellent stock selection across
several industry groups.
Technology, communication services and media stocks were among the best
performing during 1999. The continued revolution in information technology
propelled by the Internet and the proliferation of wireless technologies has
fueled robust growth for these companies. A strong year-end rally in
technology stocks was further driven by investor confidence that there would
be little negative impact from Year 2000 issues. Most retail stocks posted
solid returns for the year, as consumer spending remained strong.
Financial and pharmaceutical stocks generally lagged the overall market.
Financials came under pressure as the year progressed. Investors worried that
if the Federal Reserve continues to increase interest rates to slow the
economy and forestall higher inflation, the earnings of financial companies
would be adversely impacted. Pharmaceutical stocks suffered losses in 1999 due
to investors' concerns about decelerating earnings growth, the relative
sparseness of new product launches, and the potential reform of Medicare.
The Fund remains broadly diversified, balancing our positive view of the
fundamentals with a caution on the valuations, especially for the same narrow
list of technology and high multiple stocks that investors have continued to
favor at any price. Technology, communication services, financials, retail and
pharmaceuticals continue to be the areas of emphasis. In each sector, we will
focus on companies with strong earnings growth, exceptional management and
market dominance. We look forward to the year 2000 with an enormous sense of
excitement regarding the technological changes around us. We are eager to face
the challenge of trying to keep the Trust optimally structured for success
based on the marriage of our fundamental analysis and price considerations.
[GRAPH]
Historical Fund Return
Large-Cap Aggressive Russell 1000
DATE Growth Fund Growth Index
07/31/99 10,000 10,000
08/31/99 10,001 10,000
09/30/99 9,948 9,790
10/31/99 10,811 10,529
11/30/99 11,047 11,097
12/31/99 12,018 12,252
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Nokia Oyj 5.5% N/A
Dell Computer Corp. 5.4% N/A
Microsoft Corp. 4.3% N/A
Cisco Systems, Inc. 4.3% N/A
Intel Corp. 4.1% N/A
Tyco International, Ltd. 3.8% N/A
Home Depot, Inc. 3.7% N/A
AT&T Corp.-Liberty Media Group 3.6% N/A
Morgan Stanley, Dean Witter, Discover & Co. 3.5% N/A
MediaOne Group, Inc. 3.4% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Large-Cap Aggressive Russell 10000
Growth Fund Growth Index
---------------------- -----------------------
Since Inception 20.18% 22.52%
(8/31/99)
Top Ten Sectors (as of December 31, 1999)
-----------------------------------------------------------------------------
% of %of
investments investments
Technology 39.0% Consumer Cyclical 6.9%
Financial 15.2% Utility 2.9%
Retail 13.1% Government 1.6%
Capital Equipment 10.3% Comsumer Staple 1.0%
Health Care 10.0%
* Total returns are for the period ended December 31, 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.
7
<PAGE>
Inception: August 31, 1999
Large/Mid-Cap Value Fund
Wellington Management Company, LLP D. Chu/L. Gabriel
For the year ended December 31, 1999, the US equity market (as represented by
the S&P 500) delivered an extraordinary return of 21%, despite rising bond
yields. During the fourth quarter, the S&P 500 gained over 14%. Strong
corporate earnings, real productivity gains, a lack of wage pressure and
modest inflation provided a solid backdrop for a healthy domestic economy.
Technology was again the place to be, as Internet related stocks and
communications equipment stocks handily outperformed all other sectors. For
the fourth quarter, growth companies outperformed value companies by over 20%.
The Fund increased 7.00%, outpacing the Russell 1000 Value Index, which
advanced 5.44% for the quarter ended December 31, 1999. Since Inception, on
September 1, 1999, the Fund returned 4.72%, compared to a 1.75% return by the
benchmark.
During the quarter, the Fund's sector weights were kept closely in line with
those of the Russell 1000 Value Index. Stock selection within industries and
sectors was the primary driver of strong returns relative to the Index. For
the quarter, nine of the eleven Fund sectors outperformed the corresponding
sector in the Russell 1000 Value Index. Positive relative results came largely
from the Information & Entertainment and Industrial and Commercial sectors.
Some of the Fund's stock successes during the quarter include: Echostar
Communications which was our strongest contributor, Motorola which should
benefit from the growth in semiconductor and handset business, and Analog
Devices which was a strong contributor in the Information Technology sector.
As we begin the first quarter of 2000, we continue to believe that broad
diversification across economic sectors is a central tenet of the investment
strategy. Close alignment of the Fund's sector weights with those of the
Russell 1000 Value Index will have the effect of minimizing sector risk and
emphasizing security selection as the source of value-added.
[GRAPH]
8
<PAGE>
Inception: May 1, 1996
Mid-Cap Value Fund
Neuberger Berman, LLC Gendelman/Mullick
The Mid-Cap Value Fund posted a 5.52% return for the one-year period ended
December 31, 1999 versus -0.11% for the Russell Midcap Value Index
Stronger-than-expected economic growth and higher interest rates constrained
the performance of mid-cap stocks for much of the year. Until the fourth
quarter, only a handful of growth-oriented technology and telecommunications
stocks drove the market averages higher. In the fourth quarter, a more broad-
based rally began to emerge, sending most major stock market averages--
including the large-cap S&P 500 and the small-cap Russell 2000--to new highs
on the last trading day of 1999. Value-oriented stocks were the notable
exception to this list of winners, however.
In this environment, the Fund's performance for the year was driven primarily
by investments in producer durables (6.5% of total assets) and technology
(12.8% of total assets). Individual holdings such as satellite television
provider GM Hughes (2.45% of assets) rallied strongly after encountering
temporary setbacks in 1998. In the telecommunications area, stocks such as
Global Crossing (1.77% of assets) also recovered from previous problems,
contributing significantly to the fund's returns.
On the other hand, performance was hurt by declines in the financial sector
(24.38% of total equity market value), that represented the fund's largest
single concentration of holdings. Higher interest rates punished the stocks of
fundamentally sound companies such as Countrywide Credit (2.15% of assets).
Toward the end of the year, the Fund co-managers reduced their exposure to
highly valued technology stocks and re-deployed those assets to more
economically sensitive stocks. These areas are consumer discretionary
(13.71%), energy (7.53%) and materials and processing (12.7%). Within these
sectors, the Fund co-managers have focused mainly on "fallen angels," which
they believe are fundamentally strong companies that are currently out-of-
favor or experiencing temporary problems.
[GRAPH]
9
<PAGE>
Inception: August 31, 1999
Mid-Cap Blend Fund Independence Investment Associates, Inc. Coreen Kraysler
Encouraged by strong GDP growth, low inflation and continued productivity
gains, investors drove the U.S. equity market to new highs in 1999. This
enthusiasm resulted in yet another year of market returns in excess of 20%.
Although large cap growth stocks continued to dominate, the market broadened
considerably during the final quarter of the year. In fact, for the first time
in a long time, small and midcap stocks both beat the S&P 500; while the S&P
returned 14.88% for the fourth quarter, small and midcap stocks returned 18.4%
and 17.2% respectively. We expect this broadening to continue as greater
earnings breadth and compelling values in non-tech sectors should lead to
wider participation in market leadership in 2000.
During the fourth quarter the account returned 14.64%, below the benchmark
return, although in line with the S&P. In terms of sector leadership, returns
continued to be heavily concentrated in technology, with most other sectors
performing poorly. The highly diversified nature of this fund has a negative
impact on returns during periods of extreme narrowness such as we saw in 1999.
Although the fund owned plenty of tech stocks, with strong performers such as
Analog Devices, Teradyne, SCI and Oracle, just to name a few, it was hurt by
investments in other industries, especially financial and consumer stocks.
Despite recent increases in interest rates, the economy remains strong and
corporate profit growth is expected to maintain its double digit pace, which
bodes well for a strong stock market in 2000. In addition, while we expect
technology earnings to remain strong, we also expect strong earnings rebounds
in the basic materials, energy and transportation sectors. This wider
participation in earnings growth should result in broader market returns, and
this fund is well positioned to benefit.
[GRAPH]
10
<PAGE>
Inception: May 1, 1996
Mid-Cap Growth Fund
Janus James Goff
Domestic equity markets were volatile in 1999 as investors weighed solid
earnings reports against lingering inflation fears and rising interest rates.
The Federal Reserve responded to the strength of the U.S. economy by raising
interest rates three times between June and November, while hinting that
further rate hikes might be necessary in the new year. Amid this backdrop, the
Fund logged exceptional results, substantially outperforming its benchmark,
the Russell MidCap Growth Index.
We enjoyed broad-based gains across many of our holdings, particularly in our
technology, wireless service and telecommunications infrastructure positions.
Our positions in technological "enablers" that provide products or services to
the Internet industry were among the Portfolio's clear standouts. For example,
VeriSign's technology enables secure browser-to-server transactions over the
Internet. The stock soared following two recently announced strategic
acquisitions, which will allow VeriSign to marry its existing technology with
a back-end credit card payment platform.
Thanks to higher-than-expected cellular subscription growth, our wireless
positions in Western Wireless, OmniPoint and VoiceStream also provided
outstanding returns. The potential for additional revenues from the
introduction of wireless data transmission also fueled investor optimism.
Additionally, our telecommunication infrastructure companies, including SDL
and E-Tek Dynamics, soared. Their products increase the fiber-optic bandwidth
capacity of telecommunication networks, which is in high demand as
telecommunication providers scramble to keep up with the Internet's ever-
increasing proliferation.
On the downside, our position in Apollo Group, which operates the University
of Phoenix, came under pressure. Although Wall Street downgraded the stock, we
maintained our position due to Apollo's strong long-term growth potential.
Looking ahead, we remain steadfastly focused on uncovering dynamic companies
with extraordinary growth potential. By visiting companies on their home turf
and looking for critical information that others have overlooked or just plain
missed, we remain confident that our "all-weather" companies can grow the
bottom line in any environment.
[GRAPH]
11
<PAGE>
Inception: August 31, 1999
Fundamental Mid-Cap Growth Fund
OppenheimerFunds, Inc. B. Bartlett/J. Turner II
Fundamental Mid Cap Growth Fund performed exceptionally well during 1999. The
Fund's cumulative total returns from its inception date of August 31, 1999
through its fiscal year end of December 31, 1999 was 54.57%. We attribute the
Fund's gains primarily to our focus on growth and our strong emphasis on
technology, particularly some of the technology sector's better performing
areas.
Economic conditions provided a firm foundation for the Fund's performance.
Throughout 1999, U.S. economic growth remained robust, largely driven by the
performance of technology-oriented companies. As the year progressed, growth
accelerated in key global markets of Europe and Asia as well. However, the
possibility that U.S. growth might slow in the face of increasing domestic
interest rates gave rise to economic uncertainty. In such an environment, the
market tends to reward companies that appear most likely to deliver strong and
sustainable growth. These are precisely the kinds of companies on which the
Fund focuses.
Within technology, we derived our greatest gains from a wide range of
companies supplying the building blocks of the world's communications
infrastructure. Nearly half of our technology holdings were among optical
networking companies. By providing equipment to increase the geographical reach
and bandwidth of today's high-speed, high-capacity data communications and
telecommunications networks, these companies are profiting from the explosive
growth of the Internet and other forms of business communications.
Of course, not all of the Fund's holdings performed strongly. Financial stocks
proved volatile performers during 1999. The sector was buoyed during the first
half of the year by the healthy U.S. economy and signs of financial strength
among worldwide emerging markets. However, financial stocks suffered during the
second half of the year under pressure from slowing earnings and moderate, but
consistent, increases in long-term interest rates. In response, we
significantly reduced our position in financial companies. We also reduced our
healthcare holdings. We focused our remaining healthcare investments on
biotechnology firms with strong product pipelines.
Looking toward the coming year, we see indications that global economic
momentum is likely to continue. Consumer confidence and spending remain high,
and although pressures on prices and wages continue to grow, counterbalancing
forces such as global price competition and improved productivity have thus far
held them largely in check. In such an environment of continuing economic
health, we are enthusiastic about the growth prospects of the industries and
companies we have identified.
[GRAPH]
Historical Fund Return
Fundamental Mid-Cap Russell Mid-Cap
Growth Fund Growth Index
8/31/99 10,000 10,000
9/30/99 10,000 9,915
10/31/99 10,836 10,682
11/30/99 12,529 11,788
12/31/99 15,457 13,829
Top Ten Holdings (as of December 31, 1999)
--------------------------------------------------------------------------
% of six months ago
investments % of investments
Optical Coating Laboratory, Inc. 4.4% N/A
SDL, Inc. 4.2% N/A
E-Tek Dynamics, Inc. 4.1% N/A
Idec Pharmaceuticals Corp. 4.0% N/A
Harmonic, Inc. 3.7% N/A
QLogic Corp. 3.7% N/A
Tiffany & Co. 3.1% N/A
TV Guide, Inc. 2.9% N/A
Affymetrix, Inc. 2.5% N/A
Young & Rubicam, Inc. 2.4% N/A
Average Annual Total Returns*
-------------------------------------------------------------------------
Fundamental Russell Mid-Cap
Mid-Cap Growth Growth Index
-------------- ---------------
Since Inception (8/31/99) 54.57% 38.29%
Top Ten Sectors (as of December 31, 1999)
-------------------------------------------------------------------------
% of % of
investments investments
Technology 56.7% Utility 2.9%
Consumer Cyclical 11.1% Energy 1.8%
Retail 10.7% Transportation 1.5%
Health Care 9.8% Consumer Staple 1.5%
Capital Equipment 3.9%
* Total returns are for the period ended December 31, 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 flutuate 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.
12
<PAGE>
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment Associates, Inc. J. DeSantis/T. Spicer
With the REIT group having lost over 40% of its value over the past two
years, it is quite apparent that the stocks are trading on perception rather
than fundamentals. When reviewing the full year's performance, the sector
experienced somewhat of a reprieve in the second quarter as the market shifted
from technology/growth stocks and focused on cyclical and value plays. This
rebound proved to be short lived however as the sector has traded down ever
since then. For the year, the Wilshire Real Estate Securities Index returned a
negative 3.19%.
This downward trend has only been exacerbated by the sector's relatively low
liquidity in the face of heavy negative funds flow. Net outflows for the year
were in the $1 billion range with 16 of the past 18 months registering net
redemptions. In the near future you would expect that a combination of value
buyers, vulture buyers, and yield buyers should start to take another look at
the REIT sector with its solid growth, strong fundamentals, and income
potential. At some point, an industry with a steady 7-8% growth potential and
an 8.5% average yield that trades at a 7x multiple will be appealing to
investors once again.
Despite this rather negative tone, however, our funds continued to have
outstanding relative performance for both the quarter and the year. This
outperformance is attributable to both sector and stock selection. Overweights
in the Apartment, Office, Manufactured Homes, and Diversified sectors helped
performance as they outperformed the overall index. Underweights in the Retail
and Hotel sectors also helped as they underperformed the market. Individual
names that added to the Fund's returns included Liberty, Storage USA, Camden,
Franchise Finance, and Spieker Properties. A couple of positions also went
against us, namely JDN Realty and Burnham Pacific. Holding these positions in
a diversified manner helped to limit their impact to the overall fund. Going
forward, we expect these active positions to remain fairly constant.
[GRAPH]
Historical Fund Return
Real Estate Wilshire Real Real Estate Wilshire Real
Date Equity Fund Estate Index Date Equity Fund Estate Index
12/29/89 10,000 10,000 01/31/95 14,169 9,720
01/31/90 9,604 9,529 02/28/95 14,467 10,024
02/28/90 9,570 9,525 03/31/95 14,507 10,082
03/30/90 9,439 9,503 04/28/95 14,321 10,010
04/30/90 9,383 9,319 05/31/95 14,930 10,341
05/31/90 9,357 9,278 06/30/95 15,167 10,521
06/29/90 9,385 9,296 07/31/95 15,453 10,690
07/31/90 9,152 8,940 08/31/95 15,560 10,821
08/31/90 8,396 7,895 09/29/95 15,932 11,020
09/28/90 7,755 6,980 10/31/95 15,395 10,678
10/31/90 7,356 6,478 11/30/95 15,458 10,789
11/30/90 7,840 6,741 12/29/95 16,483 11,415
12/31/90 7,854 6,654 01/31/96 16,675 11,573
01/31/91 8,872 7,302 02/29/96 16,850 11,802
02/28/91 9,144 7,731 03/29/96 17,002 11,897
03/28/91 9,882 8,420 04/30/96 16,944 11,951
04/30/91 9,905 8,352 05/31/96 17,259 12,217
05/31/91 10,188 8,481 06/28/96 17,619 12,462
06/28/91 9,830 8,063 07/31/96 17,563 12,351
07/31/91 9,822 8,029 08/30/96 18,304 12,876
08/30/91 9,861 7,932 09/30/96 18,810 13,198
09/30/91 9,981 7,842 10/31/96 19,299 13,555
10/31/91 9,804 7,665 11/29/96 19,967 14,118
11/27/91 9,615 7,411 12/31/96 21,934 15,624
12/31/91 10,486 7,987 01/31/97 22,175 15,848
01/31/92 10,902 8,364 02/28/97 22,157 15,857
02/28/92 10,785 8,341 03/31/97 22,030 15,911
03/31/92 10,752 8,161 04/30/97 21,366 15,397
04/30/92 10,608 8,025 05/30/97 22,035 15,856
05/29/92 10,918 8,057 06/30/97 23,166 16,642
06/30/92 10,642 7,815 07/31/97 23,789 17,190
07/31/92 10,956 7,844 08/29/97 23,638 17,063
08/31/92 10,989 7,725 09/30/97 25,692 18,745
09/30/92 11,261 8,019 10/31/97 24,766 17,949
10/30/92 11,461 8,105 11/28/97 25,082 18,309
11/30/92 11,597 8,175 12/31/97 25,711 18,718
12/31/92 12,164 8,575 01/31/98 24,981 18,454
01/29/93 13,106 9,171 02/27/98 24,539 18,217
02/26/93 13,682 9,615 03/31/98 25,157 18,576
03/31/93 14,642 10,260 04/30/98 24,370 17,991
04/30/93 13,836 9,678 05/29/98 24,201 17,818
05/28/93 13,614 9,526 06/30/98 24,125 17,724
06/30/93 13,890 9,776 07/31/98 22,493 16,490
07/30/93 14,079 9,974 08/31/98 20,463 14,777
08/31/93 14,172 10,182 09/30/98 21,874 15,605
09/30/93 15,000 10,645 10/30/98 21,328 15,391
10/29/93 14,721 10,345 11/30/98 21,630 15,680
11/30/93 14,087 9,894 12/31/98 21,416 15,456
12/31/93 14,267 9,882 01/29/99 20,829 15,121
01/31/94 14,606 10,179 02/26/99 20,320 15,001
02/28/94 15,211 10,595 03/31/99 20,219 14,920
03/31/94 14,754 10,104 04/30/99 22,360 16,511
04/29/94 14,852 10,217 05/28/99 22,946 16,790
05/31/94 15,153 10,430 06/30/99 22,705 16,504
06/30/94 14,752 10,224 07/30/99 21,948 15,872
07/29/94 14,668 10,248 08/31/99 21,848 15,634
08/31/94 14,689 10,241 09/30/99 20,809 14,929
09/30/94 14,606 10,070 10/29/99 20,372 14,651
10/31/94 13,981 9,701 11/30/99 20,211 14,421
11/30/94 13,508 9,322 12/31/99 21,055 14,963
12/30/94 14,676 10,044
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Equity Residential Properties Trust 5.0% 4.8%
Avalonbay Communities, Inc. 4.9% 4.7%
Equity Office Properties Trust 4.8% 4.5%
Spleker Properties, Inc. 4.5% 2.2%
Post Properties, Inc. 3.8% 3.5%
Duke Realty Investments, Inc. 3.7% 3.5%
BRE Properties, Inc. 3.6% 4.0%
Liberty Property Trust 3.5% 3.2%
Camden Property Trust 3.2% 2.7%
Cousins Properties, Inc. 3.1% 2.8%
Average Annual Total Returns*
------------------------------------------------------------------------------
Real Estate Wilshire Real MorningStar
Equity Fund Estate Index Peer Group+
----------- ------------- -----------
1 Year -1.69% -3.19 -2.73%
3 Years -1.35 -1.43 0.12
5 Years 7.48 8.30 8.04
10 Years 7.73 4.11 8.44
Top Industries (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Real Estate Investment Trust 96.9% 96.8%
Real Estate Development 3.1% 3.2%
* Total returns are for the period ended December 31, 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. 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.
+ Source: MorningStar, Inc. Data as of 12/31/99. Although gathered from a
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Special Real
Estate investment.
13
<PAGE>
Inception: August 31, 1999
Small/Mid-Cap Value Fund
The Boston Company Asset Management, LLC Peter I. Higgins
The smaller capitalization market ended another good year on a strong note.
The growth sector, with its large technology component, dramatically outpaced
the value side of the market. Indeed value stocks were essentially flat for
the year while growth stocks were up about 50%. While this performance
divergence has been a persistent characteristic of the market for several
years, it was even more so in 1999.
The Fund performed better than its respective benchmark for the year but
lagged for the quarter. Given the dramatic underperformance of value stocks,
we are finding an abundance of underpriced stocks with outstanding potential.
Our sector focus has not changed significantly for the past several quarters.
We continue to emphasize technology and energy stocks in the portfolio but,
unlike recent quarters, these sectors underperformed their respective
benchmarks for the fourth quarter. Our portfolio of technology stocks had a
positive return but lagged the index due to the strong advance of internet
related companies which are clearly part of the growth investment spectrum.
Several technology stocks including Sterling Commerce, 3Comm, Keane and
Autodesk were strong performers in the technology sector for the quarter.
Energy prices fluctuated erratically as supply concerns, induced primarily by
threats from producing countries to reduce output, continued to impact the
market. Our strong performing energy stocks included Weatherford International
and Santa Fe International.
We are also emphasizing the consumer sectors. The economy continues to grow
at a healthy pace and inflation and unemployment remain low. The continued
high level of consumer confidence should result in strong demand at the retail
level. Callaway Golf and Liz Claiborne were two of our consumer stocks that
did well for the quarter.
Utilities and financial services remain underweight relative to the
benchmark. These sectors should continue to have slow earnings growth and
investor enthusiasm will likely be dampened by interest rate concerns.
[GRAPH]
14
<PAGE>
Inception: May 1, 1998
Small/Mid-Cap CORE Fund
Goldman Sachs Asset Management Jones/Clark/Pinter
For the year ended December 31, 1999, the Small/Mid Cap CORE Fund returned
20.54% at net asset value, underperforming its benchmark, the Russell 2500
Index, which returned 24.15%.
The economy continued to advance over the year, as evidenced by U.S. GDP
growth running in recent months at 5% or better on an annualized basis, a 31-
year high in consumer confidence and a 29-year low in the domestic jobless
rate. The Federal Reserve Board, however, mindful of the risks associated with
a shrinking labor supply, raised interest rates three times during the year,
resulting in a total increase of the Fed Funds rate of 0.75% in 1999.
The year proved exceptional for the U.S. stock indices. While the S&P 500
Index and Russell Midcap Index had annual returns of 21.04% and 18.23%,
respectively, the Index, which severely lagged larger cap indices earlier in
the year, posted a 24.15% return, ending the year ahead of the S&P 500 Index
for the first time in six years. 1999 also witnessed record-setting spreads
between returns for growth and value, as the Russell 2500 Growth Index return
of 43.09% significantly outpaced the 1.49% return of the Russell 2500 Value
Index.
Our quantitative process seeks out stocks with good momentum that also appear
to be good values. We prefer stocks favored by fundamental research analysts,
and lower volatility stocks with a below-average probability of reporting
disappointing earnings. Over the long term, these factors have led to excess
returns, although they typically do not all work well simultaneously. For
instance, during 1999, our investment themes produced mixed results in the
Russell 2500 universe. Although the momentum theme contributed greatly towards
returns, the value theme, contrary to long-term averages, hurt returns. Index
returns were driven by very few stocks, and there was an unusually wide spread
between the best- and worst-performing stocks. Thus, the chances of selecting
the best opportunities were lower than average, and the penalty for making the
wrong choice was higher than average. CORE's preference for stocks that appear
to be good values had the biggest negative impact on returns, indicating the
market's strong distaste for value. The low risk and research themes were flat
during the year.
[GRAPH]
Historical Fund Return
Small/Mid-Cap Russell 2500
Date CORE Fund Index
04/01/98 10,000 10,000
05/29/98 9,577 9,536
06/30/98 9,721 9,547
07/31/98 9,040 8,891
08/31/98 7,377 7,214
09/30/98 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
01/29/99 8,940 9,055
02/26/99 8,305 8,460
03/31/99 8,438 8,641
04/30/99 9,172 9,414
05/28/99 9,251 9,560
06/30/99 9,810 10,058
07/31/99 9,648 9,860
08/31/99 9,347 9,552
09/30/99 9,224 9,409
10/31/99 9,430 9,616
11/30/99 9,887 10,158
12/31/99 10,871 11,261
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
VeriSign, Inc. 1.0% N/A
Exodus Communications, Inc. 0.9% N/A
Telephone and Data Systems, Inc. 0.8% 0.5%
BEA Systems, Inc. 0.7% 0.1%
Valley National Bancorp 0.6% 0.3%
UnitedGlobalCom, Inc. 0.5% N/A
Conexant Systems, Inc. 0.5% N/A
i2 Technologies, Inc. 0.5% 0.1%
Tecumseh Products Co. 0.5% N/A
Sigma-Aldrich Corp. 0.5% 0.2%
Average Annual Total Returns*
------------------------------------------------------------------------------
Small/Mid-Cap Russell 2500 MorningStar
CORE Fund Index Peer Group+
------------- ------------ -----------
1 Year 20.54% 24.15% 22.57%
Since Inception (5/1/98) 5.13 7.38 N/A
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------------
% of % of
investments investments
Technology 32.1% Basic Material 5.2%
Financial 13.9% Retail 5.2%
Capital Equipment 11.7% Utility 5.0%
Consumer Cyclical 10.8% Energy 4.2%
Health Care 7.2% Consumer Staple 2.2%
* Total returns are for the period ended December 31, 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Mid-Cap Growth and a Small-Cap Growth investment style. The peer
group represents a 50% weighting of the Mid-Cap Growth style and a 50%
weighting of the Small-Cap Growth style for periods since May 1999.
15
<PAGE>
Inception: May 1, 1994
Small/Mid-Cap Growth Fund (Formerly Diversified Mid-Cap Growth)
Wellington Management Company, LLP Frank V. Wisneski
Small/Mid Cap Growth returned 0.2% from inception on 4/30/99, through the end
of 1999. This performance was disappointing as it substantially underperformed
the 22.1% return of the Target Mid Cap 750 Index and the 45.5% return for the
Russell 2500 Growth Index for the period.
Four factors contributed to the Fund's disappointing performance. First, our
diversified mid-cap exposure hurt the Fund, as equity markets were totally
focused on technology issues. Technology stocks were the clear leaders in 1999
driving markets and valuations to new highs. Second, these speculative markets
produced a difficult environment for our disciplined and fundamentally based
strategy given our requirement for three years operating profit. Investors
showed nearly insatiable demand for technology companies that not only had not
demonstrated the profitability potential of their business model, but were
often barely beyond the venture capital stage. Third, within the mid-cap
market, the Fund was invested in the smaller sized stocks. The larger mid cap
stocks outperformed for the year. Finally, some tactical stock selection
decisions also detracted from results.
The US economy remains on solid footing with real GDP forecast to grow 3.7%
on average in 2000 and the world poised for stronger growth. We are confident
that once speculative influences subside, the Fund will reflect returns that
were typical prior to 1999. We cannot predict when this narrow market will
begin to broaden, but believe the valuation gap between large and small stocks
will converge soon, resulting in strong relative performance for small/mid cap
stocks. While frustrating over the short term, we continue to believe that
we've seen nothing in the present market that would prompt a significant
change to our approach.
[GRAPH]
Historical Fund Return
Date Small/Mid-Cap Growth Benchmark(1) Small/Mid-Cap Growth Fund
04/01/94 10,000 10,000
05/31/94 10,015 10,020
06/30/94 9,584 10,043
07/29/94 9,849 10,066
08/31/94 10,437 10,359
09/30/94 10,265 10,094
10/31/94 10,442 10,263
11/30/94 9,982 9,992
12/30/94 10,121 10,056
01/31/95 10,243 9,934
02/28/95 10,788 10,283
03/31/95 11,216 10,798
04/28/95 11,310 11,069
05/31/95 11,589 11,087
06/30/95 12,116 11,652
07/31/95 12,879 12,564
08/31/95 13,020 12,807
09/29/95 13,310 12,764
10/31/95 12,973 12,361
11/30/95 13,553 13,160
12/29/95 13,560 13,672
01/31/96 13,800 14,151
02/29/96 14,322 14,612
03/29/96 14,435 14,939
04/30/96 15,132 16,011
05/31/96 15,441 16,455
06/28/96 14,975 16,237
07/31/96 13,812 14,615
08/30/96 14,559 15,484
09/30/96 15,483 16,411
10/31/96 15,302 16,926
11/29/96 16,203 17,438
12/31/96 15,930 17,820
01/31/97 16,635 17,845
02/28/97 16,269 16,824
03/31/97 15,350 15,825
04/30/97 15,726 15,365
05/30/97 17,135 16,487
06/30/97 17,609 16,713
07/31/97 19,294 18,028
08/29/97 19,106 17,686
09/30/97 20,073 19,025
10/31/97 19,068 18,622
11/28/97 19,268 18,188
12/31/97 19,521 18,432
01/01/98 19,170 18,106
02/27/98 20,972 19,666
03/31/98 21,851 20,641
04/30/98 22,148 20,584
05/29/98 21,237 19,648
06/30/98 21,838 20,389
07/31/98 20,902 19,268
08/31/98 16,913 15,227
09/30/98 18,192 16,009
10/30/98 19,532 16,874
11/30/98 20,849 17,602
12/31/98 23,008 19,466
01/29/99 23,698 19,610
02/26/99 22,539 18,154
03/31/99 23,794 19,356
04/30/99 24,879 20,435
05/28/99 25,136 20,604
06/30/99 26,913 21,478
07/31/99 26,364 20,970
08/31/99 25,794 19,348
09/30/99 25,979 18,728
10/31/99 27,244 18,829
11/30/99 30,460 19,019
12/31/99 36,205 20,468
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Sterling Software 4.4% 3.2%
Catalina Marketing Corp. 3.7% 3.2%
DST Systems, Inc. 3.6% 4.1%
Shared Medical Systems Corp. 3.5% 2.8%
Dallas Semiconductor Corp. 3.0% 3.6%
Beringer Wine Estates Holdings 2.9% 2.7%
Synopsys, Inc. 2.7% 2.7%
Montana Power Co. 2.6% 1.2%
Reinsurance Group of America 2.5% 2.7%
American Management Systems, Inc. 2.4% 2.5%
Average Annual Total Returns*
------------------------------------------------------------------------------
Small/Mid- Small/Mid-Cap MorningStar
Cap Growth Fund Growth Benchmark (1) Peer Group+
---------------------- ----------------------- ----------
1 Year 5.15% 57.36% 59.49%
3 Years 4.73 31.48 29.55
5 Years 15.27 29.03 26.75
Since Inception 13.50 25.49 N/A
(5/1/94)
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------------
% of %of
investments investments
Technology 37.4% Retail 5.7%
Consumer Cyclical 13.2% Basic Material 4.0%
Capital Equipment 11.9% Consumer Staple 3.5%
Financial 11.6% Utility 2.6%
Health Care 6.8% Transportation 2.3%
(1) The Small/Mid-Cap Growth Fund benchmark is the Russell Mid-Cap Growth
Index from May 1994 to April 1999 and the Russell 2500 Growth Index
May 1999-present
* Total returns are for the period ended December 31, 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. 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable
universe having a Mid-Cap Growth and a Small-Cap Growth investment style.
The peer group represents a 65% weighting of the Mid-Cap Growth style and a
35% weighting of the Small-Cap Growth style. Prior to May 1999, the peer
group represents the Mid-Cap Growth investment style.
16
<PAGE>
Inception: May 1, 1996
Small-Cap Value Fund
INVESCO Inc. Bob Slotpole
There were ample fireworks on Wall Street as the millennium came to a close.
A December surge in equity prices capped one of the most rewarding decades in
history. Small cap stocks ended the year with a strong 4th quarter and, as a
result of this late year rally, finished the year just slightly ahead of large
cap stocks for the first time since 1993.
Many stocks failed to participate in 1999's gains, however, owing to intense
industry competition and rising interest rates. During the 4th quarter small
cap growth stocks outperformed value by an extraordinary margin--33.4% versus
1.5%--the largest one quarter difference since the inception of the Russell
2000 Index in 1979. Technology and Telecommunications stocks continued to lead
the market, while many sectors finished the quarter in the red. Retail, Energy
and Consumer Staples had the biggest losses.
The Small Cap Value Fund returned -0.24% for the quarter, lagging a 1.53%
return for the Russell 2000 Value Index. The Fund's total return for 1999 was
-3.43% versus 1.23% for benchmark. 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. Not surprisingly, in a year of exceptional returns to
growth stocks our value-oriented stock selection tools, such as low
price/earnings and price/assets ratios, performed poorly. Our process also
favors companies with improving earnings estimates, which underperformed in
the 4th quarter. This was taken to an extreme in the Internet sector, where
stocks seemed to perform well even as losses mounted. Offsetting some of the
weakness in value tools, however, was strong performance from such factors as
a stock's relative price strength and how aggressively companies were
repurchasing their own shares.
[GRAPH]
17
<PAGE>
Inception: May 1, 1996
Small-Cap Growth Fund
John Hancock Advisers, Inc. Bernice Behar
The last quarter of the millennium was a memorable one for the equity
markets. Investors seemingly brushed all Y2K concerns aside, leading stocks to
towering heights. Growth stocks benefited the most from the frenzy, soaring
well ahead of their value counterparts. This trend was clearly illustrated by
the disparity between the returns of the Russell 2000 Value and the Russell
2000 Growth Indexes. The Russell 2000 Growth outpaced the small cap value
index by almost 32%. The fourth quarter strength also influenced the
occurrence of a significant event--the return of small caps. Small cap stocks
edged ahead of large caps for the first time since 1993. For the year, the
Russell 2000 returned 21.26% and the S&P 500 gained 21.04%. The Fund benefited
from the strength in both small cap and growth stocks. It climbed 45.57% for
the fourth quarter and 70.38% for the year.
Within the Fund, we remain positive on the outlook for the media segment. In
addition to our radio holdings, we found opportunities in Internet media
companies. We targeted Internet audience measurement firms that track customer
habits. Information on consumer behavior on the web is becoming increasingly
important to web advertisers in order to determine appropriate ad rates and
customize their advertisements.
We own several securities in the gene discovery segment of the biotechnology
industry. A steady flow of positive news has re-focused investor attention
towards this industry. Many larger drug companies have formed partnerships
with smaller biotechnology firms with the expectation that their technologies
will lead to the development of new drugs. Although biotechnology stocks
performed well this quarter, we believe they will continue to outperform. We
increased our weighting to take advantage of this potential appreciation.
[GRAPH]
18
<PAGE>
Inception: May 1, 1998
Global Equity Fund
Scudder Kemper Investments, Inc. W. Holzer/D. Espinosa
For the fourth quarter 1999, the Global Equity Fund returned 15.94% in line
with its benchmark, the MSCI World Index return of 16.96%. For the year 1999,
the Fund returned 24.19%, slightly underperforming the benchmark return of
25.34%.
During 1999 the Fund's performance can be very broadly characterized by The
Fund's themes. The Empowered Consumer theme (companies that enable consumers
by providing new electronic infrastructure and electronic markets for goods
and services) performed extremely well on a sharp rise in technology shares.
The Ultimate Subcontractor theme (companies that are the world's cheapest
producers, and which are able to retain their wealth) modestly underperformed
as our holdings produced mixed results. Secure Streams of Income theme
(companies providing stable income in de-regulated environments) endured a
tough year as we had an incorrect view on our defensive investments under this
theme. Our exposure to the Darkside Restructuring theme (companies in
previously regulated economies or industries that are restructuring with a
focus on shareholder value) remained constant throughout the fourth quarter.
Technology was the driver as both US and International markets accelerated
towards the end of the year, with the tech stock rally broadening to include
mid cap companies, especially in Europe, as well.
The Emerging Markets completed an astonishing year. Latin America was the
star of the last quarter as attention focussed on Mexico on grounds of
convergence with the US, and on Brazil as economic recovery progressed.
In anticipation of greater market volatility, investment actions will
concentrate on trimming Fund exposure to the expensive technology stocks owned
under the Empowered Consumer theme, and consolidating our holdings under the
defensive Secure Streams of Income theme. Finally we will maintain our
investments under the Ultimate Subcontractor theme which, although also
subject to the penalties of higher interest rates, should prove more durable,
supported by the continuing process of consolidation.
[GRAPH]
19
<PAGE>
Inception: May 2, 1988
International Equity Index Fund
Independence International Associates, Inc. Norman Meltz
The International Equity Index Fund returned 18.85% for the fourth quarter of
1999 versus its benchmark return of 18.40%. For the year, the Fund's return of
30.87% has matched its benchmark return of 30.87%.
On July 1st this past year the Fund invested 10% of its assets in the
emerging markets. That portion of the Fund will track the Morgan Stanley
Emerging Markets Free (MSEMF) Index. The remaining 90% of the Fund will
continue to invest in a strategy that tracks Morgan Stanley's GDP Index.
Therefore the Fund's benchmark now consists of a blended index comprised of
90% Morgan Stanley GDP Index and 10% MSEMF Index.
Developed international markets delivered excellent returns across the board
this past quarter. The GDP Index gained 17.55% during the quarter. Emerging
markets performed even better as the MSEMF Index rose 25.45%. Within the
developed markets all twenty countries in which the Fund invests showed
positive returns. Finland performed best with a return of 89% due largely to
Nokia, which represents more than 20% of Finland and rose 114%. The Euro zone
rose 25% this quarter. The Pacific developed markets, dominated by Japan with
a 16% return, rose 16%. Every return would have been even higher but for a
strong US dollar that reduced the returns achieved in the local equity
markets.
In the emerging markets Latin America led the regions with a 33% return led
by Brazil which rose 55%. Turkey led all emerging countries with a return of
125%.
Growth stocks dominated returns across the world this past quarter to a
degree we have not seen over the past twenty-five years. Independence's
International Growth Stock Index outperformed the comparable Value Stock Index
by 21% over the quarter. The next largest difference between these two groups
occurred in 1987 but measured only 13%. The Fund was able to participate in
this trend since it owns both value and growth stocks.
[GRAPH]
20
<PAGE>
Inception: August 31, 1999
International Equity Fund
Goldman Sachs Asset Management S. Maeda/I. Farman/S. Noble
For the period since inception (August 31, 1999) through December 31, 1999,
the International Equity Fund returned 21.59% at net asset value,
outperforming its benchmark, the MSCI EAFE Index, which returned 18.25%.
The international equity markets ended the year on a positive note, with the
Index rising substantially during the fourth quarter. This strong performance
occurred despite interest rate increases by monetary authorities around the
world and Y2K-related uncertainty early in the quarter. However, the equity
markets appeared to shake these interest rate concerns for the remainder of
the period and, ultimately, liquidity fears were not substantiated by trading
volume declines or by substantial increases in cash levels in the marketplace.
The strength in international equity markets was largely focused on a narrow
range of sectors as telecommunication and technology stocks rose meteorically,
reflecting the strong demand and positive pricing in these industries. In
addition, some cyclical stocks also rallied towards the end of the quarter in
response to optimism about international GDP growth. Conversely, more
defensive stocks such as Pharmaceuticals and Oil stocks performed poorly.
We increased our exposure in the Telecommunications industry. In the voice
and data "carriers' sector we bought Deutsche Telecom (0.7% of total Fund
assets) and Energis (0.4% of total Fund assets), a UK-based "alternative'
telecommunications operator. Holdings in the chemicals sector were raised with
purchases of BASF (0.6% of total Fund assets) and Asahi Chemicals (0.5% of
total Fund assets).
Within the context of our positive overall outlook for global equities, we
are moderately underweight in Europe, although we have a positive view of the
long-term prospects for Continental Europe. Growth is clearly recovering in
the region and there are some long term structural attractions, such as reform
in the pension and savings industry, which we expect to lead to highly
significant flows of new assets into equity markets. We are overweight Asian
equities, though more confident about the outlook for Southeast Asian markets
than for Japan. Economic growth in Japan has clearly exceeded all expectations
this year, though there are some signs that the momentum of growth will not
prove to be sustainable and our bottom-up earnings analysis also suggests that
consensus expectations for future profits growth will be disappointed in
certain sectors. Nevertheless, yields on Japanese equities are still
attractive.
[GRAPH]
21
<PAGE>
Inception: May 1, 1996
International Opportunities Fund
Rowe Price-Fleming International, Inc. Martin Wade
The excitement driving US technology, telecom and Internet stocks raced
through all international regions in the fourth quarter, pushing the MSCI EAFE
benchmark up 17% (cited in US$). Latin America--not in the MSCI EAFE
benchmark--was the strongest region, up 33%. Performances of other regions
were in a tight band with the Pacific ex-Japan ahead 19%, Europe up 17%, and
Japan 16% higher. The overriding factor propelling markets was enthusiasm for
"new economy" stocks: telecom and Internet-related companies and their
suppliers.
The portfolio returned 34.01%, markedly outperforming the 31.79% return of
its benchmark. Country weighting relative to the benchmark was broadly neutral
for the full year. Our underweight position in Japan subtracted considerable
value, while an overweight position in Latin America added significant value.
Also, underweight positions in the weaker UK and German markets were positive
contributors. The sector which added the most value was overweighting
electronic components. Overweighting the consumer electronics sector and
underweighting utilities and insurance were also positive.
We expect stronger economic growth in Europe. In Japan, declining domestic
demand and capital expenditure together with the potential for a strong yen
are liable to keep the economy weak. Elsewhere in Asia, economic recovery is
well under way and we expect it to continue. We remain cautiously optimistic
about Latin America. Although we believe the valuations of some "new economy"
stocks in international regions have become excessive, we are enthusiastic
about the growth potential of well-managed telecom, Internet-related and
technology businesses. Fortified by a year of improvement, international
economies are poised for better growth with moderate inflation in 2000.
Greater-than-expected progress in restructuring and reform during 1999, as
well as more mergers and acquisitions than anticipated, have enhanced the
earning potential of international companies and have paved the way for
international stock markets to rise in the year ahead.
[GRAPH]
22
<PAGE>
Inception: May 1, 1998
Emerging Markets Equity Fund
Morgan Stanley Asset Management R. Meyer/A. Skov
The Fund gained 50.45% during the fourth quarter versus a return of 25.44%
for the MSCI EMF index.
Outperformance was attributable to both strong stock selection and country
allocation. Stock selection in South Korea contributed markedly to
performance. Other notable contributors were equity selections in India,
Israel, Mexico and Taiwan. Our overweight position in Egypt (+45.2%), Turkey
(+124.9%) and Indonesia (+41.3%) coupled with our underweight stance in Greece
(-6.0%) contributed positively to performance. Poor stock selection in India
and Indonesia and country allocation in South Korea (+19.7%) detracted from
performance.
A supportive global environment, dissipating concerns over Y2K and heartier
investor risk appetites helped the emerging markets perform remarkably well
during the quarter. Continued strength in commodity prices and improving
economic fundamentals, coupled with positive election results (India, Mexico,
and Russia) and IMF agreements (Russia and Turkey), further boosted the
emerging markets. During the quarter, Taiwan and Turkey evidenced their
resilience in light of the earthquakes they suffered during the third quarter,
and investors rewarded countries such as India and Turkey for their commitment
to reforms.
We continue to focus on Asia, a region benefiting from trade surpluses,
export growth and export market competitiveness vis-a-vis Yen strength versus
the US Dollar. We will continue to underweight the Latin American region in
the near term as we believe other regions within the emerging markets
presently offer more exciting investment opportunities. Turkey remains one of
our most significant overweight positions within Emerging Europe and the
Middle East, and within Turkey we are focusing on domestic themes, adding to
those companies best positioned to take advantage of a lower interest rate and
inflation environment and higher consumer spending.
[GRAPH]
23
<PAGE>
Inception: March 29, 1986
Money Market Fund
John Hancock Mutual Life Insurance Co. Peter Mitsopoulos
With the economy performing admirably, productivity strong and inflation well
contained, many investors were hopeful that rates would remain stable. The
wildcard continued to be a persistently low unemployment rate and a
continually tightening labor supply. But on June 30, as these two economic
indicators failed to ease, coupled with a spike in the consumer price index
(CPI) in April the Fed raised the Fed Funds target rate by .25%. The Fed
raised rates two more times, the last in November which brought the target
rate back up to 5.50%.
We began the year with the objective of extending the maturity of the Fund as
our outlook was for a stable rate environment. We began purchasing one year
maturities to lock in some higher rates and in addition, purchased one-month
and three-month adjustable rate securities, a category in which we were
underweighted. However, following the increase in April's CPI and the Fed's
monetary tightening bias, we quickly needed to change direction and began
shortening the Fund. We lowered the Fund's weighted average maturity from a
high of 83 days in May, to an eventual level of 47 days in December. Rates did
rise, but surprisingly, 1999's year-end did not play out like a typical year-
end mainly due to Y2K concerns. Many corporations had completed their year-end
funding needs early and many banks were flush with cash from various sources
including the Fed's liquidity initiatives which effectively reduced investment
supply in December. We decided in November to reduce the level of maturities
of the Fund for December to a level prudent for Fund liquidity, but not for
significant investment needs. This strategy benefited the Fund as rates did
indeed drop off and the Fund had little rollover investing needs.
The Fund is invested primarily in commercial paper (64%), adjustable rate
notes (22%) and other money market securities. The Fund is diversified among
many industry sectors and companies.
[GRAPH]
24
<PAGE>
Inception: May 1, 1994
Short-Term Bond Fund
Independence Investment Associates, Inc. Jeff Saef
In the fourth quarter of 1999 investor disinterest for credit risk was
replaced with all out enthusiasm, resulting in significant outperformance of
corporate securities to comparable duration U.S. Treasury securities. The high-
risk premiums of the sector relative to the underlying strength of the U.S.
economy, and diminished corporate supply expectations in preparation for Y2K,
lead to the outperformance of the corporate bond market. The rally in the
corporate bond market started in the beginning of the quarter with higher
quality, more liquid corporate securities outperforming both comparable
duration U.S. Treasury securities and lower quality corporate securities. As
the quarter continued, the rally in high quality corporate bonds stalled out as
investors sold these securities in favor of lower quality higher yielding
bonds, which had lagged the corporate market for the first half of the quarter.
The increase investor demand for yield caused the lower quality securities to
outperform for the remainder of the quarter, finishing off a volatile but great
year for the corporate bond market.
Your fund outperformed its benchmark during the quarter for three primary
reasons. First, the fund continues to benefit from a yield advantage provided
by an overweight in corporate securities relative to the benchmark. Second,
short maturity corporate bonds tightened in spread during the quarter,
providing an additional return advantage relative to the fund's benchmark.
Finally, as investors searched for lower quality yield, our individual
securities held in the fund outperformed relative to the average corporate bond
in the benchmark. Strong performers included: Popular Inc., Tenet Healthcare,
Beckman Instruments, Lehman Brothers, Williams Companies, and Petroleum
GeoServices. While the relative return of the fund was strong, rising interest
rates largely offset these absolute gains, resulting in a .83% for the quarter.
[GRAPH]
Historical Fund Return
Short-Term Short-Term
DATE Bond Benchmark(1) Bond Fund
Apr-1994 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
Jul-1999 13,891 13,192
Aug-1999 13,922 13,225
Sep-1999 14,024 13,327
Oct-1999 14,074 13,363
Nov-1999 14,114 13,412
Dec-1999 14,135 13,438
Top Ten Holdings (as of December, 31, 1999)
--------------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 4.5% 4.8%
Banponce Corp. 3.2% 3.1%
Tenet Healthcare Corp. 3.1% 3.0%
Norfolk Southern Corp. 3.1% 3.0%
First Hawaiian, Inc. 3.1% 3.0%
MBNA America Bank N.A. 3.1% 3.0%
U.S. Treasury 3.0% 2.0%
Dial Corp. 3.0% 2.9%
BankBoston Corp. 2.9% 2.8%
Donaldson, Lufkin & Jenrette, Inc. 2.8% 2.8%
Average Annual Total Returns*
-------------------------------------------------------------------------------
Short-Term Short-Term MorningStar
Bond Fund Bond Benchmark(1) Peer Group+
---------- ----------------- -----------
1 Year 2.96% 3.62% 2.35%
3 Years 5.05 5.88 5.27
5 Years 6.02 6.95 6.50
Since Inception (5/1/94) 5.35 6.30 N/A
Fund Composition (as of December 31, 1999)
--------------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Government Bonds 7.14% less than 1 Year 18.90%
AAA 7.65% 1-3 Years 47.10%
AA 2.08% 3-5 Years 26.50%
A 35.56% 5-10 Years 5.00%
BBB 41.43% more than 10 Years 2.50%
BB 6.14%
Below B 0%
NR/NA 0%
* Total returns are for the period ended December 31, 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 12/13/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Short Term
Bond investment style. Prior to May 1998 (concurrent with the Fund's
strategy change), the peer group represents the Short Term Government Bond
style.
(1) Short-Term Bond Index represents the Merrill Lynch 1-5 year Government
Bond from May 1994 to April 1998 and 65% Lehman Brothers 1-3 year Corporate
Index. 35% Lehman Brothers 1-3 year Government Index, May 1998 to present.
25
<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 -0.65% for December, -
0.50% for the fourth quarter and 2.64% from inception. Corresponding returns
for the benchmark were -0.61%, -0.41% and 2.96%. 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 4,600 issues in the Index including price sensitivity,
industry, and quality exposures. An indexed portfolio typically eliminates many
risks associated with active management and has lower fees and expenses.
The third quarter was a difficult one for the bond market as market yields
rose steadily. From an economic perspective, the fourth quarter looked a lot
like the third quarter. Any positive sentiment quickly faded as investors
focused on the continued strength of the economy. Economic strength is often
bad for bonds due to the increased potential for an increase in inflation. A
string of economic releases on the heels of similar numbers in the third
quarter led investors to expect at least one increase in key short-term rates
by the Federal Reserve in the first part of 2000. As a result, the market's
path of least resistance was toward higher yields. Mortgage and Corporate
sectors performed better than U.S. Government issues, but all were hurt by the
increase in yields.
[GRAPH]
26
<PAGE>
Inception: March 29, 1986
Sovereign Bond Fund
John Hancock Advisers, Inc. James Ho
During the quarter, the US economy remained robust, as consumer spending
stayed strong, unemployment resided at a 30-year low, business productivity
continued to rise and inflation remained tame. On November 16th, the Fed raised
rates by 25 basis points for the third time since June, as the risk of higher
inflation continued to be a threat. For the year overall, the bond market
suffered its worst year since 1994 and its second worst year since 1973.
Interest rates rose significantly across the yield curve (86-181bp) and both
inflation fears and concerns of Y2K computer problems sent bond prices lower in
1999 causing poor performance in most sectors of the bond market.
Despite rising interest rates, most spread sectors of the bond market narrowed
during the fourth quarter of the year. Fortunately, new issue supply slowed as
corporations' need to raise cash diminished and spreads began to tighten early
in the fourth quarter, offsetting the negative effects of the rising yield
curve. Investment grade corporate bonds outperformed Treasuries for both the
quarter and year-to-date (roughly 174 bp on a duration-adjusted basis). During
the quarter, high yield bonds were one of the best performing sectors, while
mortgage backed and asset backed securities continued to perform well due to
additional spread tightening. Emerging Markets were the top performing sector
for the period (returning 10.7%) and year-to-date (returning 23.0%), despite
continued volatility and limited liquidity.
During the quarter, the Fund gained 0.15%, outperforming the index at (0.12%).
Year-to-date the Fund performed well on a relative basis returning (.94%),
outperforming the index return of (1.87%). Given the poor performance in
Treasuries during the quarter, our underweight position in this sector relative
to the benchmark contributed positively to performance results. In addition,
the Fund's higher exposure to corporate bonds and asset backed securities also
contributed to positive performance results.
[GRAPH]
Historical Fund Return
Sovereign Sovereign Bond Sovereign Sovereign Bond
Date Bond Fund Benchmark(1) Date Bond Fund Benchmark(1)
12/29/89 10,000 10,000 01/31/96 17,507 17,393
01/31/90 9,876 9,863 02/29/96 17,170 17,025
02/28/90 9,902 9,885 03/29/96 17,066 16,882
03/30/90 9,912 9,886 04/30/96 16,979 16,765
04/30/90 9,858 9,795 05/31/96 16,975 16,737
05/31/90 10,068 10,079 06/28/96 17,147 16,961
06/29/90 10,204 10,242 07/31/96 17,202 17,000
07/31/90 10,309 10,369 08/30/96 17,215 16,959
08/31/90 10,214 10,219 09/30/96 17,526 17,261
09/28/90 10,279 10,304 10/31/96 17,899 17,663
10/31/90 10,407 10,441 11/29/96 18,180 17,988
11/30/90 10,587 10,668 12/31/96 18,119 17,788
12/31/90 10,741 10,829 01/31/97 18,186 17,810
01/31/91 10,828 10,951 02/28/97 18,272 17,847
02/28/91 10,961 11,045 03/31/97 18,079 17,635
03/28/91 11,061 11,121 04/30/97 18,325 17,892
04/30/91 11,223 11,249 05/30/97 18,531 18,059
05/31/91 11,306 11,302 06/30/97 18,774 18,275
06/28/91 11,315 11,289 07/31/97 19,337 18,835
07/31/91 11,437 11,432 08/29/97 19,148 18,624
08/30/91 11,696 11,694 09/30/97 19,458 18,916
09/30/91 11,934 11,939 10/31/97 19,626 19,219
10/31/91 12,051 12,045 11/28/97 19,734 19,321
11/27/91 12,151 12,166 12/31/97 19,950 19,523
12/31/91 12,530 12,576 01/31/98 20,223 19,799
01/31/92 12,409 12,389 02/27/98 20,206 19,759
02/28/92 12,441 12,455 03/31/98 20,321 19,820
03/31/92 12,410 12,387 04/30/98 20,420 19,919
04/30/92 12,490 12,461 05/29/98 20,602 20,133
05/29/92 12,699 12,703 06/30/98 20,799 20,338
06/30/92 12,864 12,889 07/31/98 20,838 20,354
07/31/92 13,174 13,219 08/31/98 21,043 20,751
08/31/92 13,317 13,337 09/30/98 21,525 21,345
09/30/92 13,497 13,518 10/30/98 21,324 21,193
10/30/92 13,332 13,312 11/30/98 21,529 21,320
11/30/92 13,291 13,300 12/31/98 21,592 21,371
12/31/92 13,490 13,528 01/29/99 21,791 21,523
01/29/93 13,731 13,823 02/26/99 21,344 21,011
02/26/93 14,016 14,111 03/31/99 21,496 21,116
03/31/93 14,094 14,159 04/30/99 21,564 21,169
04/30/93 14,181 14,268 05/28/99 21,331 20,951
05/28/93 14,175 14,261 06/30/99 21,277 20,886
06/30/93 14,465 14,584 07/30/99 21,234 20,827
07/30/93 14,587 14,678 08/31/99 21,192 20,811
08/31/93 14,896 15,015 09/30/99 21,381 20,998
09/30/93 14,969 15,068 10/29/99 21,425 21,076
10/29/93 14,985 15,130 11/30/99 21,500 21,073
11/30/93 14,873 14,959 12/31/99 21,389 20,972
12/31/93 14,942 15,024
01/31/94 15,160 15,250
02/28/94 14,882 14,917
03/31/94 14,567 14,552
04/29/94 14,436 14,431
05/31/94 14,411 14,405
06/30/94 14,397 14,372
07/29/94 14,630 14,659
08/31/94 14,666 14,665
09/30/94 14,495 14,444
10/31/94 14,471 14,428
11/30/94 14,444 14,402
12/30/94 14,558 14,497
01/31/95 14,836 14,775
02/28/95 15,191 15,118
03/31/95 15,309 15,219
04/28/95 15,531 15,431
05/31/95 16,198 16,078
06/30/95 16,338 16,206
07/31/95 16,268 16,143
08/31/95 16,456 16,350
09/29/95 16,621 16,516
10/31/95 16,891 16,759
11/30/95 17,143 17,036
12/29/95 17,404 17,286
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Government National Mortgage Assoc. 20.8% 6.0%
U.S. Treasury 17.3% 26.5%
Federal National Mortgage Assoc. 9.8% 2.4%
UCFC Home Equity Loan 1.4% 1.8%
GMAC Commercial Mortgage Securities Inc. 1.3% 1.3%
Federal Home Loan Mortgage Corp. 1.2% 1.2%
Hydro-Quebec 1.0% 1.0%
Texas New Mexico Power Co. 1.0% 1.0%
Amresco Residential Securities 0.9% 0.9%
Ford Motor Credit Co. 0.8% 0.4%
Average Annual Total Returns*
------------------------------------------------------------------------------
Sovereign Bond Sovereign Bond MorningStar
Fund Benchmark(1) Peer Group+
-------------- -------------- -----------
1 Year -0.94% -1.87% -0.54%
3 Years 5.69 5.64 5.11
5 Years 8.00 7.66 7.52
10 Years 7.90 7.69 7.50
Fund Composition (as of December 31, 1999)
------------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Government Bonds 46.83% Less than 1 Year 5.90%
AAA 11.89% 1-3 Years 10.44%
AA 5.41% 3-5 Years 8.21%
A 7.85% 5-10 Years 26.24%
BBB 13.93% More than 10 Years 49.21%
BB 6.5%
B 6.7%
Below B 0.36%
NR/NA 0.52%
(1) The Sovereign Bond Benchmark represents the Lehman Brothers
Government/Corporate Bond Index from April 1986 to September 1999 and Lehman
Brothers Aggregate Bond Index from October 1999 to present.
* Total returns are for the period ended December 31, 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-
accounts within the Morningstar variable universe having an Intermediate
Bond investment style.
27
<PAGE>
Inception: May 1, 1996
Global Bond Fund (Formerly Strategic Bond Fund)
J.P. Morgan Investment Management, Inc. David Gibbon
Bond yields rose sharply in the U.S. and Europe as the Fed, Bank of England
and ECB tightened policy in response to improving global growth and rising
input prices. At the same time, Japanese bond yields fell through the quarter
as domestic investors questioned the improvement in growth prospects and debt
supply fears and extended along the yield curve. Liquidity conditions improved
through the quarter as Y2K fears abated and investors cautiously returned to
the credit markets. New issuance declined throughout the quarter to a near halt
in December.
We continue to hold a short-duration bias, adding value in the rising interest
rate environment. Country selection continues to hinder the portfolio's
performance, as we concentrated the portfolio's duration underweight in Japan.
With the exception of non-EMU Europe, Japan was the best performing region in
the fixed income index during the fourth quarter.
Our currency management was a drag on excess return, as we elected to leave a
portion of our euro holdings unhedged early in the quarter. From mid-October to
early December the euro declined in value by 9% relative to the US dollar. The
portfolio maintains full currency hedges on yen-denominated assets. After a
difficult third quarter, corporate spreads narrowed sharply in the fourth
quarter, as concerns about a Y2K liquidity meltdown eased. Our allocation to
non-government bonds added value relative to the index.
With little sign of any material slowing in U.S. growth (aside from some
moderation in the construction sector), continued improvement in the Japanese
economy, and the rebound in European business confidence, bond markets lack
fundamental support going into 2000. In the U.S., strong business and consumer
confidence, a robust equity market and very buoyant labour market suggest the
need for additional Fed policy tightening. Rapid monetary growth and credit
expansion, together with the unprecedented external deficit, imply the need to
slow the economy to a more sustainable pace, even in the absence of any
significant consumer price pressures. The market discounts an insufficient
amount of tightening this year in order to slow the economy to an acceptable
pace.
[GRAPH]
Historical Fund Return
Date Global Bond Fund Global Bond Benchmark(1)
04/30/96 10,000 10,000
05/31/96 9,983 10,002
06/28/96 10,068 10,123
07/31/96 10,103 10,162
08/30/96 10,112 10,183
09/30/96 10,297 10,370
10/31/96 10,490 10,586
11/29/96 10,674 10,775
12/31/96 10,671 10,703
01/31/97 10,723 10,762
02/28/97 10,755 10,799
03/31/97 10,634 10,695
04/30/97 10,761 10,844
05/30/97 10,871 10,936
06/30/97 11,021 11,080
07/31/97 11,262 11,348
08/29/97 11,194 11,279
09/30/97 11,396 11,454
10/31/97 11,459 11,597
11/28/97 11,518 11,658
12/31/97 11,637 11,784
01/01/98 11,774 11,937
02/27/98 11,795 11,956
03/31/98 11,844 12,013
04/30/98 11,899 12,076
05/29/98 12,012 12,203
06/30/98 12,101 12,294
07/31/98 12,133 12,342
08/31/98 12,315 12,554
09/30/98 12,624 12,848
10/30/98 12,538 12,792
11/30/98 12,639 12,882
12/31/98 12,702 12,907
01/29/99 12,811 13,016
02/26/99 12,564 12,823
03/31/99 12,667 12,914
04/30/99 12,704 12,986
05/28/99 12,577 12,908
06/30/99 12,446 12,762
07/30/99 12,562 12,736
08/31/99 12,512 12,750
09/30/99 12,435 12,815
10/29/99 12,430 12,841
11/30/99 12,454 12,884
12/31/99 12,428 12,983
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Government of France 16.1% 6.9%
U.S. Treasury 14.4% 14.1%
Federal National Mortgage Assoc. 7.5% 4.8%
Government of Japan 7.0% 4.7%
U.K. Treasury 5.3% 7.2%
Repsol International Finance 5.0% 5.1%
Government of Netherlands 4.8% 5.1%
Government of Sweden 4.5% 4.6%
Government of Spain 3.2% N/A
Standard Credit Card Master Trust 3.1% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Global Bond Global Bond MorningStar
Fund Benchmark(1) Peer Group+
----------- ------------ -----------
1 Year -2.16% .59% -1.44%
3 Years 5.21 6.65 4.62
Since Inception (5/1/96) 6.10 7.38 N/A
Fund Composition (as of December 31, 1999)
------------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Government Bonds 50.08% Less than 1 Year 4.80%
AAA 30.00% 1-3 Years 16.85%
AA 13.14% 3-5 Years 22.67%
A 3.02% 5-10 Years 34.60%
BBB 3.76% More than 10 Years 21.08%
Below BB 0%
NR/NA 0%
* Total returns are for the period ended December 31, 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 expenses and charges of the
applicable separate accounts and variable products, all of which vary to a
considerable extent and are described in your product prospectus.
(1) Global Bond Benchmark: 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 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Reprsents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a General Bond
Intermediate High Quality investment style and an International Bond
investment style. The peer group represents a 35% weighting of the General
Bond Intermediate High Quality style and a 65% weighting of the
International Bond style. Prior to May 1999 (concurrent with the Fund's
strategy change), the peer group represents a 75% weighting of the General
Bond Intermediate High Quality style and a 25% weighting of the
International Bond style.
28
<PAGE>
Inception: May 1, 1998
High-Yield Bond Fund
Wellington Management Company, LLP Crawford/Smith/McEvoy
In the fourth quarter, the US high yield market (as measured by the Lehman
High Yield Index) gained 1.63%. This performance exceeded the -0.1% return of
investment grade bonds as measured by the Lehman Brothers Aggregate Index. The
superior return came from the tightening of the spread of high yield issues
versus 10-year Treasury issues. During the quarter, the Fund advanced 3.30%
compared to a 1.63% return of the Lehman High Yield Index. Since inception, on
April 30, 1998, the Fund returned 1.19%, which compares favorably to the 0.31%
return of the Lehman HY Index.
While rising yields on US Treasuries hurt investment grade bonds during the
quarter, high yield bonds held steady for a number of reasons. First, a strong
US equity market served to create a wind at the back of the high yield market.
Second, outflows in high yield mutual funds subsided during the quarter.
Finally, high yield default rates declined sequentially for the second straight
quarter from their peak levels in the second quarter.
The Fund's average quality rating remained at B2 compared to B1 for the Lehman
HY Index. Within high yield, lower quality ("B" rated) bonds outperformed
higher quality ("BB" rated) bonds in the fourth quarter, and on a full-year
basis.
During the quarter, we continued to favor the telecommunication and media and
entertainment sectors as we believe these areas are experiencing the most
secular growth. We continue to invest in companies which derive most of their
revenues from within the United States. 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.
[GRAPH]
Historical Fund Return
Date High-Yield Bond Fund L/B High-Yield Bond Index
04/01/98 10,000 10,000
05/31/98 9,987 10,035
06/30/98 10,028 10,071
07/31/98 10,075 10,128
08/31/98 9,309 9,569
09/30/98 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
01/31/99 9,819 9,963
02/28/99 9,884 9,904
03/31/99 10,062 9,999
04/30/99 10,214 10,192
05/31/99 9,992 10,054
06/30/99 9,989 10,033
07/31/99 9,993 10,073
08/31/99 9,925 9,962
09/30/99 9,874 9,890
10/31/99 9,806 9,825
11/30/99 10,090 9,940
12/31/99 10,200 10,052
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Nextel Communcations, Inc. 2.5% 2.3%
GCI, Inc. 2.0% 1.4%
EchoStar DBS Corp. 1.9% 2.0%
Lin Holdings Corp. 1.7% 1.8%
Duane Reade, Inc. 1.7% 1.8%
NTL Communications Corp. 1.7% 1.8%
Lyondell Chemical Co. 1.7% 1.8%
Intermedia Communication, Inc. 1.6% 1.7%
P&L Coal Holdings Corp. 1.6% 1.7%
Fairchild Semiconductor Corp. 1.5% 1.2%
Average Annual Total Returns*
------------------------------------------------------------------------------
High-Yeild L/B High-Yeild Morning Star
Bond Fund Bond Index Peer Group+
---------- -------------- ------------
1 Year 5.13% 2.39% 4.05%
Since Inception(5/1/98) 1.19 .31 N/A
Fund Composition (as of December 31, 1999)
------------------------------------------------------------------------------
Credit Quality Duration
-------------- --------
Government Bonds 0% Less than 1 Year 10.10%
AAA 0% 1-3 Years 1.70%
AA 0% 3-5 Years 9.20%
A 0% 5-10 Years 76.30%
BBB 0.7% Greater than 10 Years 1.60%
BB 19.1% Equity/Other 1.10%
B 76.6%
Below B 1.7%
NR/NA 1.9%
* Total returns are for the period ended December 31, 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 share, 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 Trust level charges (i.e. investment management fees
and operating expenses). It does not reflect expense and charges of the
applicable seperate accounts and variable products, all of which vary to a
considerable extent and are described in your prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a High Yield
investment style.
29
<PAGE>
Inception: March 29, 1986
Managed Fund
Independence Investment Associates, Inc. John Forelli/Jeff Saef
Your balanced Fund returned a solid 7.41% during the fourth quarter of 1999.
The strong equity markets led your performance gain. Your account also returned
a strong 9.10% for the year despite a bond market that declined for all of
1999. The equity portion led your performance gain with a fourth quarter return
of 12.37% and a 1999 return of 16.37%. Stocks that performed well during the
quarter included Citigroup, Marsh & McLennan and Home Depot. We remain focused
on finding cheap stocks with improving fundamentals and controlling risk in
your Fund during this period of excessive valuation. On the fixed income side,
your Fund beat the bond market (Lehman Aggregate Bond Index) by a strong 0.45%
in the fourth quarter as corporate, mortgage and international bonds performed
quite well. Asset Allocation remained at an approximate 60% Equity/40% Fixed
Income mix throughout the quarter.
The equity and fixed income markets went in opposite directions during 1999.
Equity investors remain enamored with the strong economic environment, the free
spending consumer and low inflation. Bond investors continue to be fearful of
Fed interest rate hikes, low unemployment and wage pressures. We are focusing
on both strong S&P 500 earnings growth and the seemingly excessive valuation of
technology stocks in the market today. On balance, we believe the current
environment bodes well for a continued strong stock market next year, as money
flows should pick up now that Y2K is behind us. We also expect that broader
economic growth and greater earnings breadth should lead to a wider
participation in market leadership. We also believe the bond market could rally
nicely once Fed rate increases are behind us sometime during the second quarter
of 2000.
[GRAPH]
Historical Fund Return
Managed Managed Managed Managed
Date Fund Benchmark(1) Date Fund Benchmark(1)
12/29/89 10,000 10,000 01/31/95 15,211 15,265
01/31/90 9,629 9,596 02/28/95 15,667 15,739
02/28/90 9,669 9,668 03/31/95 15,871 16,024
03/30/90 9,780 9,796 04/28/95 16,224 16,369
04/30/90 9,599 9,630 05/31/95 16,846 17,035
05/31/90 10,086 10,239 06/30/95 17,093 17,303
06/29/90 10,228 10,286 07/31/95 17,364 17,558
07/31/90 10,330 10,334 08/31/95 17,572 17,694
08/31/90 9,847 9,792 09/29/95 18,093 18,155
09/28/90 9,641 9,592 10/31/95 18,129 18,256
10/31/90 9,686 9,638 11/30/95 18,711 18,809
11/30/90 10,117 10,053 12/29/95 18,976 19,121
12/31/90 10,415 10,267 01/31/96 19,268 19,509
01/31/91 10,709 10,551 02/29/96 19,188 19,396
02/28/91 11,126 10,974 03/29/96 19,210 19,407
03/28/91 11,286 11,143 04/30/96 19,249 19,483
04/30/91 11,340 11,223 05/31/96 19,479 19,718
05/31/91 11,629 11,489 06/28/96 19,665 19,890
06/28/91 11,327 11,220 07/31/96 19,234 19,471
07/31/91 11,596 11,553 08/30/96 19,399 19,654
08/30/91 11,873 11,822 09/30/96 20,008 20,381
09/30/91 11,907 11,849 10/31/96 20,495 20,898
10/31/91 12,056 11,981 11/29/96 21,282 21,883
11/27/91 11,893 11,799 12/31/96 21,010 21,547
12/31/91 12,704 12,672 01/31/97 21,507 22,229
01/31/92 12,507 12,460 02/28/97 21,582 22,342
02/28/92 12,595 12,573 03/31/97 21,079 21,745
03/31/92 12,433 12,415 04/30/97 21,649 22,552
04/30/92 12,696 12,633 05/30/97 22,277 23,350
05/29/92 12,877 12,790 06/30/97 22,880 24,010
06/30/92 12,915 12,791 07/31/97 24,174 25,331
07/31/92 13,275 13,212 08/29/97 23,490 24,485
08/31/92 13,174 13,138 09/30/97 24,278 25,348
09/30/92 13,339 13,303 10/31/97 24,037 25,127
10/30/92 13,215 13,225 11/28/97 24,612 25,775
11/30/92 13,478 13,442 12/31/97 24,942 26,132
12/31/92 13,684 13,645 01/31/98 25,219 26,454
01/29/93 13,859 13,844 02/27/98 26,363 27,577
02/26/93 14,070 14,081 03/31/98 27,338 28,459
03/31/93 14,324 14,257 04/30/98 27,524 28,688
04/30/93 14,110 14,137 05/29/98 27,434 28,501
05/28/93 14,322 14,324 06/30/98 28,205 29,292
06/30/93 14,536 14,510 07/31/98 27,914 29,130
07/30/93 14,519 14,523 08/31/98 25,300 26,793
08/31/93 15,011 14,966 09/30/98 26,169 28,073
09/30/93 15,069 14,937 10/30/98 27,562 29,384
10/29/93 15,243 15,119 11/30/98 28,713 30,519
11/30/93 15,098 14,963 12/31/98 30,034 31,611
12/31/93 15,272 15,088 01/29/99 30,490 32,494
01/31/94 15,628 15,454 02/26/99 29,660 31,661
02/28/94 15,214 15,077 03/31/99 30,292 32,490
03/31/94 14,768 14,564 04/30/99 31,164 33,287
04/29/94 14,844 14,598 05/28/99 30,672 32,698
05/31/94 14,846 14,704 06/30/99 31,761 33,745
06/30/94 14,699 14,506 07/30/99 31,095 33,057
07/29/94 15,030 14,891 08/31/99 30,900 32,952
08/31/94 15,263 15,197 09/30/99 30,508 32,563
09/30/94 14,941 14,899 10/29/99 31,688 33,847
10/31/94 15,007 15,061 11/30/99 31,891 34,259
11/30/94 14,775 14,771 12/31/99 32,768 35,404
12/30/94 14,931 14,928
Top Ten Holdings (as of December 31,1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 9.6% 9.2%
Microsoft Corp. 3.0% 2.7%
Government National Mortgage Assoc. 3.0% 3.9%
General Electric Co. 2.7% 2.3%
U.S. Treasury 2.7% 5.3%
Cisco Systems, Inc. 2.2% 1.2%
Citigroup, Inc. 1.9% 2.0%
MCI WorldCom, Inc. 1.8% 1.5%
Intel Group. 1.5% 1.5%
Time Warner, Inc. 1.3% 1.6%
Average Annual Total Returns*
------------------------------------------------------------------------------
Managed Managed Morning Star
Fund Benchmark(1) Peer Group+
------- ------------ -------------
1 Year 9.10% 12.00% 9.58%
3 Years 15.97 18.00 14.17
5 Years 17.02 18.85 15.96
10 Years 12.60 13.48 12.01
Top Ten Sectors (as of December 31,1999)
------------------------------------------------------------------------------
% of %of
investments investments
Governmental 20.7% Healthcare 6.2%
Technology 18.8% Consumer Cyclical 5.4%
Financial 18.2% Retail 4.4%
Capital Equipment 8.5% Energy 3.9%
Utility 7.0% Consumer Staple 2.7%
* Total returns are for the period ended December 31, 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 seperate accounts and variable products, all of which vary to a
considerable extent and are described in your prospectus.
(1) The Managed Benchmarked Represents 50% S&P 500/50% Lehman Brothers
Government/Corporate Bond from April 1986 to December 1997 than 60% S&P
500/40% Lehman Brothers Government/Corporate Bond from 1998 to April 1998
and now 60% S&P 500/40% Lehman Brothers Aggregate Bond from May 1998 to
present.
+ Source: MorningStar, Inc. Data as of 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar Variable universe Domestic Hybrid
investment style.
30
<PAGE>
Inception: August 31, 1999
Aggressive Balanced Fund
Independence Investment Associates Inc. J. Forelli/J. Saef
Your balanced Fund returned a strong 8.94% during the fourth quarter of 1999.
The strong equity markets led your performance gain. The equity portion led
your performance gain with a fourth quarter return of 12.25%. Your Fund had
particularly good performance in financial and healthcare stocks including
Citigroup, Kansas City Southern Industries (owner of Janus Mutual Funds),
Genentech and Warner Lambert. We avoided many technology stocks trading in
excess of 50 times earnings, as we did not believe their future earnings growth
justified those valuations. We remain focused on finding cheap stocks with
improving fundamentals and controlling risk in your Fund during this period of
excessive valuation. On the fixed income side, your Fund beat the bond market
(Lehman Aggregate Bond Index) by a 0.11% in the fourth quarter as corporate and
mortgage bonds performed quite well. Asset Allocation remained at an
approximate 75% Equity/25% Fixed Income mix throughout the quarter.
The equity and fixed income markets went in opposite directions during 1999.
Equity investors remain enamored with the strong economic environment, the free
spending consumer and low inflation. Bond investors continue to be fearful of
Fed interest rate hikes, low unemployment and wage pressures. We are focusing
on both strong S&P 500 earnings growth and the seemingly excessive valuation of
technology stocks in the market today. On balance, we believe the current
environment bodes well for a continued strong stock market next year, as money
flows should pick up now that Y2K is behind us. We also expect that broader
economic growth and greater earnings breadth should lead to a wider
participation in market leadership. We also believe the bond market could rally
nicely once Fed rate increases are behind us sometime during the second quarter
of 2000.
[GRAPH]
Historical Fund Return
Date Aggressive Balanced Fund Aggressive Balanced Benchwork
8/31/99 10,000 10,000
9/30/99 9,830 9,823
10/31/99 10,274 10,299
11/30/99 10,383 10,456
12/31/99 10,709 10,905
Top Ten Holdings (as of December 31, 1999)
------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Federal National Mortage Assoc. 8.3% N/A
U.S. Treasury 6.1% N/A
Microsoft Corp. 4.0% N/A
Cisco Systems, Inc. 2.8% N/A
Citigroup, Inc. 2.7% N/A
General Electric Co. 2.4% N/A
Government National Mortgage Assoc. 2.2% N/A
MCI WorldCom, Inc. 1.9% N/A
Intel Corp. 1.8% N/A
International Business Machines Corp. 1.7% N/A
Average Annual Total Returns*
------------------------------------------------------------------------------
Aggressive Balanced Aggressive Balanced
Fund Benchmark
------------------- -------------------
Since Inception (8/31/99) 7.09% 9.05%
Top Ten Sectors (as of December 31, 1999)
------------------------------------------------------------------------------
% of %of
Investments Investments
Technology 22.9% Health Care 7.3%
Govermental 16.6% Retail 5.9%
Financial 14.1% Consumer Cyclical 4.5%
Capital Equipment 9.5% Energy 4.2%
Utility 8.2% Basic Material 3.0%
* Total returns are for the period ended December 31, 1999. Returns
represent past performance, assume reinvestment of all distributions and
are not indicative of future performance. Investment returns 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 seperate accounts and variable
products, all of which vary to a considerable extent and are described
in your product prospectus.
31
<PAGE>
Inception: May 1, 1996
International Balanced Fund
Brinson Partners, Inc. Management Team
The International Balanced Fund provided a 6.3% return for the fourth quarter,
which lagged the Fund's benchmark return of 10.5%. The calendar year return for
the Fund was 5.1%, versus the benchmark return of 15.4%.
The international equity markets were strong in the final months of 1999, lead
by growth stocks primarily in the technology and telecommunication sector. The
technology explosion was not limited to the U.S. market, and many developed
markets such as Japan and the U.K. were driven by the industry move. In
general, international equity markets performed well for the year, as the
global bond market returns were much weaker due to central banks' concern for
future inflation. The allocation decision to underweight equities and
overweight bonds was the single greatest detractor from the Fund's overall
performance for the year. In spite of the increase in long-term discount rates
and high market volatility, outperformance occurred in the most "aggressive"
sectors of the equity markets. The price/earning multiples on the class of high
growth companies has expanded further, while the debt market reflects market
uncertainty, as evidenced by widening treasury yield spreads. The Fund is
defensively positioned, as we remain wary of the disconnect between bonds and
equities.
For the calendar year, the Asian equity markets were the best performers, and
the portfolio benefited from the overweight in Japan. Stocks that performed
well in the portfolio included Nokia, Sony, Fanuc and Toyota. The consistently
best performing industries across all equity markets were electronics and
telecommunications, which also coincides with our view that they are the most
expensive.
Within the Fund, we continue to emphasize non-U.S. bond markets over equities.
Our conservative approach to global capital markets was not rewarded in 1999,
but our conviction has not faltered. There is an equity bubble in a sector of
the economy related to the "new era" technology, and increasing evidence
suggests that the equity markets are ripe for a correction.
[GRAPH]
Historical Fund Return
International International Balanced
Date Balanced Fund Composite Benchmrk (1)
04/30/96 10,000 10,000
05/31/96 9,992 9,890
06/30/96 10,055 9,940
07/31/96 9,956 9,847
08/31/96 10,007 9,898
09/30/96 10,257 10,066
10/31/96 10,315 10,082
11/30/96 10,678 10,396
12/31/96 10,673 10,278
01/31/97 10,509 9,927
02/28/97 10,624 9,983
03/31/97 10,568 9,964
04/30/97 10,507 9,934
05/31/97 11,089 10,489
06/30/97 11,433 10,896
07/31/97 11,471 10,928
08/31/97 10,986 10,411
09/30/97 11,470 10,879
10/31/97 11,127 10,433
11/30/97 10,967 10,260
12/31/97 10,955 10,287
01/31/98 11,195 10,599
02/28/98 11,630 11,099
03/31/98 11,808 11,269
04/30/98 11,952 11,412
05/31/98 11,952 11,366
06/30/98 11,915 11,383
07/31/98 11,962 11,437
08/31/98 11,270 10,597
09/30/98 11,435 10,644
10/31/98 12,221 11,534
11/30/98 12,443 11,832
12/31/98 12,925 12,239
01/31/99 12,914 12,171
02/28/99 12,390 11,823
03/31/99 12,558 12,148
04/30/99 12,778 12,482
05/31/99 12,313 11,979
06/30/99 12,412 12,180
07/31/99 12,785 12,559
08/31/99 12,772 12,609
09/30/99 12,781 12,783
10/31/99 12,912 13,099
11/30/99 12,992 13,333
12/31/99 13,586 14,127
Top Ten Holdings (as of December 31,1999)
------------------------------------------------------------------------------
% of six months ago
investments % of investments
Government of France 5.9% 6.8%
Government of Japan 5.0% N/A
Government of Canada 4.4% 4.4%
Government of Sweden 4.0% 3.3%
U.K. Treasury 3.8% 4.6%
Queensland Treasury Corp. 3.2% 4.5%
Government of Netherlands 3.0% N/A
Kingdom of Denmark 2.6% 3.1%
Government of Spain 2.2% 5.2%
Treuhandansalt 1.8% 4.1%
Average Annual Total Returns*
------------------------------------------------------------------------------
International Balanced International Balanced Morning Star
Fund Composite Benchmark(1) Peer Group+
---------------------- ----------------------- -------------
1 Year 5.11% 15.42% 11.14%
3 Years 8.38 11.19 11.05
Since Inception 8.71 9.88 N/A
(5/1/96)
Top Ten Countries (as of December 31,1999)
------------------------------------------------------------------------------
% of %of
investments investments
Japan 24.7% Netherlands 5.8%
United Kingdom 13.9% Canada 5.5%
France 11.5% Australia 4.9%
Germany 10.5% Spain 4.0%
Sweden 6.1% Italy 3.3%
* Total returns are for the period ended December 31, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. Investment returns 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 flucations, political
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 seperate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
(1) 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 flucatations, political and economic instability, foreign taxation
and different accounting standards, as outlined in the current prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/99. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar Variable universe
having an International Hybrid Investment style.
32
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Fundamental Aggressive Sovereign Emerging International Global International
Growth Mid Cap Growth Balanced Bond Markets Equity Equity Index Equity Equity
---------- -------------- ---------- --------- -------------- ------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments
at cost............... $1,004,671 $6,582 $11,003 $824,197 $22,691 $178,516 $17,019 $ 9,913
Net unrealized
appreciation/(depreciation)
of investments........ 370,609 2,179 615 (23,838) 8,286 55,864 4,184 1,953
Short-Term Investments
at market............. 6,510 329 1,268 81,840 1,191 8,974 995 300
---------- ------ ------- -------- ------- -------- ------- -------
Total Investments.... 1,381,790 9,090 12,886 882,199 32,168 243,354 22,198 12,166
Cash.................. 57 236 126 261
Receivable for:
Investments sold..... 84 288
Fund shares sold..... 3 136 149 500 178 19
Interest............. 32 12,643
Dividends............ 780 5 20 237 31 9
Futures contracts
margin............... 43 15
Foreign currency
sold.................
Unrealized
appreciation in
forward foreign
currency contracts...
Other assets.........
---------- ------ ------- -------- ------- -------- ------- -------
TOTAL ASSETS......... 1,382,570 9,234 13,059 895,034 32,924 244,072 22,374 12,436
LIABILITIES
Payables for:
Investments
purchased............ 57 1,172 44,616 177 57
Fund shares
purchased............ 28
Foreign currency
purchased............
Future contracts
daily variation......
Unrealized
depreciation in
forward foreign
currency contracts... 9
Other liabilities.... 69 2 4 132 151 46 6 6
---------- ------ ------- -------- ------- -------- ------- -------
TOTAL LIABILITIES.... 97 59 1,176 44,748 328 55 63 6
---------- ------ ------- -------- ------- -------- ------- -------
NET ASSETS............ $1,382,473 $9,175 $11,883 $850,286 $32,596 $244,017 $22,311 $12,430
========== ====== ======= ======== ======= ======== ======= =======
Shares of beneficial
interest outstanding.. 50,580 636 1,119 93,200 2,658 12,421 1,839 1,040
---------- ------ ------- -------- ------- -------- ------- -------
Net asset value per
share................. $ 27.33 $14.42 $ 10.62 $ 9.12 $ 12.26 $ 19.64 $ 12.13 $ 11.95
========== ====== ======= ======== ======= ======== ======= =======
Composition of net
assets:
Capital Paid in...... 975,081 6,737 11,230 899,353 24,679 188,296 18,475 10,447
Accumulated net
realized gain/(loss)
on investments....... 36,660 259 34 (26,833) (212) (502) (345) 10
Undistributed/(distributions
in excess of) net
investment income.... 123 4 1,427 (15) (7) (3) 0
Net unrealized
appreciation/(depreciation)
of:
Investments.......... 370,609 2,179 615 (23,838) 8,286 55,864 4,184 1,953
Foreign currency
translation.......... (142) (23)
Futures contracts.... 177 389 20
---------- ------ ------- -------- ------- -------- ------- -------
Net Assets............ $1,382,473 $9,175 $11,883 $850,286 $32,596 $244,017 $22,311 $12,430
========== ====== ======= ======== ======= ======== ======= =======
</TABLE>
See notes to financial statements.
33
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small Cap International Mid Cap Mid Cap Large Cap Large Cap Large/Mid Money
Growth Balanced Growth Blend Value Value CORE Cap Value Market
--------- ------------- -------- ------- --------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost......................... $119,627 $27,817 $272,924 $5,372 $145,337 $5,646 $5,667
Net unrealized
appreciation/(depreciation)
of investments............... 58,683 2,272 170,352 306 4,109 70 221
Short-Term Investments at
market....................... 978 829 9,398 125 6,345 500 216 $449,739
-------- ------- -------- ------ -------- ------ ------ --------
Total Investments........... 179,288 30,918 452,674 5,803 155,791 6,216 6,104 449,739
Cash......................... 362 567 21 130 1
Receivable for:
Investments sold............ 1,364 2 18 40
Fund shares sold............ 409 1 356 3 19 42 1,616
Interest.................... 247
Dividends................... 21 23 1 6 291 7 8
Futures contracts margin.... 1
Foreign currency sold.......
Unrealized appreciation in
forward foreign currency
contracts...................
Other assets................
-------- ------- -------- ------ -------- ------ ------ --------
TOTAL ASSETS................ 181,444 31,758 453,070 5,812 156,082 6,373 6,194 451,356
LIABILITIES
Payables for:
Investments purchased....... 1,830 109 157 91
Fund shares purchased....... 20
Foreign currency purchased..
Future contracts daily
variation...................
Unrealized depreciation in
forward foreign currency
contracts................... 63
Other liabilities........... 44 9 133 2 56 2 2 121
-------- ------- -------- ------ -------- ------ ------ --------
TOTAL LIABILITIES........... 1,874 181 133 2 233 2 93 121
-------- ------- -------- ------ -------- ------ ------ --------
NET ASSETS................... $179,570 $31,577 $452,937 $5,810 $155,849 $6,371 $6,101 $451,235
======== ======= ======== ====== ======== ====== ====== ========
Shares of beneficial interest
outstanding.................. 9,394 2,950 15,496 543 11,552 627 586 45,124
-------- ------- -------- ------ -------- ------ ------ --------
Net asset value per share.... $ 19.12 $ 10.71 $ 29.22 $10.70 $ 13.49 $10.16 $10.42 $ 10.00
======== ======= ======== ====== ======== ====== ====== ========
Composition of net assets:
Capital Paid in............. 121,816 29,745 274,346 5,439 151,786 6,302 5,882 451,235
Accumulated net realized
gain/(loss) on investments.. (929) (149) 8,239 64 (122) (9) (4)
Undistributed/(distributions
in excess of) net investment
Income...................... (223) 1 76 2
Net unrealized
appreciation/(depreciation)
of:
Investments................. 58,683 2,272 170,352 306 4,109 70 221
Foreign currency
translation................. (68)
Futures contracts........... 8
-------- ------- -------- ------ -------- ------ ------ --------
Net Assets................... $179,570 $31,577 $452,937 $5,810 $155,849 $6,371 $6,101 $451,235
======== ======= ======== ====== ======== ====== ====== ========
</TABLE>
See notes to financial statements.
34
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Mid Cap Small/Mid Cap Bond Large Cap Small/Mid Cap Small/Mid Cap Real Estate Growth &
Value Growth Index Aggressive Growth CORE Value Equity Income
------- ------------- ------- ----------------- ------------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term
Investments at cost. $84,856 $168,108 $39,591 $12,443 $7,107 $5,270 $128,503 $3,058,262
Net unrealized
appreciation/(depreciation)
of investments...... 5,006 5,766 (2,266) 2,120 842 80 (4,550) 1,157,647
Short-Term
Investments at
market.............. 3,503 9,219 985 568 200 179 1,212
------- -------- ------- ------- ------ ------ -------- ----------
Total Investments.. 93,365 183,093 38,310 15,131 8,149 5,529 125,165 4,215,909
Cash................ 51 9,940
Receivable for:
Investments sold... 3 1,098
Fund shares sold... 16 582 33 33 41
Interest........... 662
Dividends.......... 71 61 2 6 2 1,121 3,009
Futures contracts
margin............. 10
Foreign currency
sold...............
Unrealized
appreciation in
forward foreign
currency contracts.
Other assets.......
------- -------- ------- ------- ------ ------ -------- ----------
TOTAL ASSETS....... 93,452 183,736 39,005 15,133 8,249 5,575 126,286 4,229,956
LIABILITIES
Payables for:
Investments
purchased.......... 1,265 1,730 556 54 9,753
Fund shares
purchased.......... 27 1,030
Foreign currency
purchased..........
Future contracts
daily variation....
Other liabilities.. 37 75 13 5 1 5 45 332
------- -------- ------- ------- ------ ------ -------- ----------
TOTAL LIABILITIES.. 1,302 1,805 569 59 1 5 72 11,115
------- -------- ------- ------- ------ ------ -------- ----------
NET ASSETS.......... $92,150 $181,931 $38,436 $15,074 $8,248 $5,570 $126,214 $4,218,841
======= ======== ======= ======= ====== ====== ======== ==========
Shares of beneficial
interest
outstanding......... 7,212 12,963 4,125 1,263 840 550 11,000 210,823
------- -------- ------- ------- ------ ------ -------- ----------
Net asset value per
share............... $ 12.78 $ 14.03 $ 9.32 $ 11.94 $ 9.82 $10.13 $ 11.47 $ 20.01
======= ======== ======= ======= ====== ====== ======== ==========
Composition of net
assets:
Capital Paid in.... 98,404 176,445 40,826 12,929 7,434 5,487 134,651 2,987,029
Accumulated net
realized
gain/(loss) on
investments........ (11,260) (280) (191) 25 (35) 3 (5,476) 72,063
Undistributed/(distributions
in excess of) net
investment Income.. 67 1,589 2,102
Net unrealized
appreciation/(depreciation)
of:
Investments........ 5,006 5,766 (2,266) 2,120 842 80 (4,550) 1,157,647
Foreign currency
translation........
Futures contracts.. 7
------- -------- ------- ------- ------ ------ -------- ----------
Net Assets.......... $92,150 $181,931 $38,436 $15,074 $8,248 $5,570 $126,214 $4,218,841
======= ======== ======= ======= ====== ====== ======== ==========
</TABLE>
See notes to financial statements.
35
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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>
ASSETS
Long term investments at
cost......................... $2,862,284 $66,313 $67,613 $54,907 $364,089 $19,450 $71,639
Net unrealized
appreciation/(depreciation)
of investments............... 508,755 (1,393) (1,426) 21,530 91,657 (789) (3,358)
Short-Term Investments at
market....................... 338,170 2,908 2,390 3,255 816 1,714 7,769
---------- ------- ------- ------- -------- ------- -------
Total Investments........... 3,709,209 67,828 68,577 79,692 456,562 20,375 76,050
Cash......................... 1,107 7 68 25
Receivable for:
Investments sold............ 28 1,778
Fund shares sold............ 190 10 228 45 192
Interest.................... 15,767 1,064 448 1,517
Dividends................... 1,598 122 82 444 3
Futures contracts margin.... 31 14
Foreign currency sold.......
Unrealized appreciation in
forward foreign currency
contracts................... 6,513 1,305
Other assets................
---------- ------- ------- ------- -------- ------- -------
TOTAL ASSETS................ 3,734,381 68,902 68,927 79,826 457,325 20,826 80,689
LIABILITIES
Payables for:
Investments purchased....... 303,144 6,029 8,801
Fund shares purchased....... 894 874
Foreign currency purchased..
Future contracts daily
variation...................
Other liabilities........... 318 58 27 32 11 23
---------- ------- ------- ------- -------- ------- -------
TOTAL LIABILITIES........... 303,462 58 27 32 6,029 905 9,698
---------- ------- ------- ------- -------- ------- -------
NET ASSETS................... $3,430,919 $68,844 $68,900 $79,794 $451,296 $19,921 $70,991
========== ======= ======= ======= ======== ======= =======
Shares of beneficial interest
outstanding.................. 222,091 7,081 6,311 5,259 22,060 2,217 7,230
---------- ------- ------- ------- -------- ------- -------
Net asset value per share.... $ 15.45 $ 9.72 $ 10.92 $ 15.17 $ 20.46 $ 8.99 $ 9.82
========== ======= ======= ======= ======== ======= =======
Composition of net assets:
Capital Paid in............. 2,860,906 71,690 73,930 58,444 358,887 20,951 73,868
Accumulated net realized
gain (loss) on investments.. 42,336 (1,560) (3,636) (108) (865) (278) (1,323)
Undistributed/(distributions
in excess of) net investment
income...................... 12,545 107 32 (67) 1,262 37 441
Net unrealized
appreciation/(depreciation)
of:
Investments................. 508,755 (1,393) (1,426) 21,530 91,657 (789) (3,358)
Foreign currency
translation................. 6,377 (5) 1,274
Futures contracts........... 355 89
---------- ------- ------- ------- -------- ------- -------
Net Assets................... $3,430,919 $68,844 $68,900 $79,794 $451,296 $19,921 $70,991
========== ======= ======= ======= ======== ======= =======
</TABLE>
See notes to financial statements.
36
<PAGE>
STATEMENT OF OPERATIONS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Fundamental Mid Aggressive Sovereign Emerging International Global International
Growth Cap Growth(*) Balanced(*) Bond Markets Equity Equity Index Equity Equity (*)
--------- --------------- ----------- --------- -------------- ------------- ------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest.............. $ 646 $ 6 $ 58 $ 64,238 $ 64 $ 259 $ 43 $ 13
Dividends (Note B).... 8,167 3 29 164 2,735 309 34
-------- ------ ---- -------- ------- ------- ------ ------
8,813 9 87 64,238 228 2,994 352 47
Expenses
Investment advisory
fee (Note C).......... 4,387 17 24 2,215 182 314 159 36
Auditors fees......... 80 62 6 17 7 1
Custodian fees........ 118 5 9 52 305 313 78 24
Fidelity Bond fees.... 1 1
Legal fees............ 21 16 3
Printing & mailing
fees.................. 144 1 1 135 72 1
Trustees fees......... 14 11 2 4 2
Other fees............ 1 1 5
-------- ------ ---- -------- ------- ------- ------ ------
4,765 23 34 2,493 495 729 246 62
Less expenses
reimbursed (Note C)... 3 7 294 139 62 22
-------- ------ ---- -------- ------- ------- ------ ------
4,765 20 27 2,493 201 590 184 40
-------- ------ ---- -------- ------- ------- ------ ------
Net Investment
Income/(Loss).......... 4,048 (11) 60 61,745 27 2,404 168 7
REALIZED AND UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized
gain/(loss) on sales
of investments........ 246,459 786 73 (25,838) 1,607 4,750 (24) 190
Increase in unrealized
appreciation/(depreciation)
of:
Investments........... 20,524 2,179 615 (44,681) 9,598 48,346 4,008 1,953
Foreign currency
translation........... (142) (133)
Futures............... 177 517 20
-------- ------ ---- -------- ------- ------- ------ ------
Net realized and
unrealized gain/(loss)
on investments........ 266,983 2,965 688 70,342 11,063 53,480 3,984 2,163
-------- ------ ---- -------- ------- ------- ------ ------
Net
increase/(decrease) in
net assets resulting
from operations....... $271,031 $2,954 $748 $ (8,597) $11,090 $55,884 $4,152 $2,170
======== ====== ==== ======== ======= ======= ====== ======
</TABLE>
(*) Commenced investment operations on August 31, 1999.
See notes to financial statements.
37
<PAGE>
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small Cap International Mid Cap Mid Cap Large Cap Large Cap Large/Mid Cap Money
Growth Balanced Growth Blend(*) Value Value CORE(*) Value(*) Market
--------- ------------- -------- -------- --------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 106 $ 835 $ 378 $ 3 $ 377 $ 4 $ 4 $20,320
Dividends (Note B)......... 83 276 127 25 3,646 32 31
------- ------ -------- ---- ------- ---- ---- -------
189 1,111 505 28 4,023 36 35 20,320
Expenses
Investment advisory fee
(Note C)................... 732 253 1,646 13 1,088 13 17 965
Auditors fees.............. 11 8 15 14 8 30
Custodian fees............. 85 120 98 7 80 8 79
Fidelity Bond fees.........
Legal Fees................. 2 1 3 3 7
Printing & mailing fees.... 35 4 90 60 100
Trustees fees.............. 3 3 4 4 6
Other fees.................
------- ------ -------- ---- ------- ---- ---- -------
868 389 1,856 20 1,249 21 25 1,187
Less expenses reimbursed
(Note C)................... 91 6 6 7
------- ------ -------- ---- ------- ---- ---- -------
868 298 1,856 14 1,249 15 18 1,187
------- ------ -------- ---- ------- ---- ---- -------
Net Investment
Income/(Loss)............... (679) 813 (1,351) 14 2,774 21 17 19,133
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 24,283 1,839 55,989 268 7,671 100 11
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ 41,804 (519) 148,557 306 (7,556) 70 221
Foreign currency
translation................ (606) (33)
Futures.................... 8
------- ------ -------- ---- ------- ---- ---- -------
Net realized and unrealized
gain on investments........ 66,087 714 204,513 574 115 178 232
------- ------ -------- ---- ------- ---- ---- -------
Net increase in net assets
resulting from operations.. $65,408 $1,527 $203,162 $588 $ 2,889 $199 $249 $19,133
======= ====== ======== ==== ======= ==== ==== =======
</TABLE>
(*) Commenced investment operations on August 31, 1999.
See notes to financial statements.
38
<PAGE>
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Mid Cap Small/Mid Cap Bond Large Cap Small/Mid Cap Small/Mid Cap Real Estate Growth &
Value Growth Index Aggressive Growth(*) CORE Value(*) Equity Income
------- ------------- ------- -------------------- ------------- ------------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest.......... $ 86 $ 343 $ 2,214 $ 10 $ 4 $ 4 $ 71 $ 1,667
Dividends (Note
B)................ 1,343 699 17 70 12 9,786 47,886
------- -------- ------- ------ ------ ---- -------- --------
1,429 1,042 2,214 27 74 16 9,857 49,553
Expenses..........
Investment
advisory fee
(Note C).......... 735 1,360 48 38 48 16 835 9,807
Auditors fees..... 12 18 8 1 6 15 247
Custodian fees.... 55 81 51 6 78 11 53 308
Fidelity Bond
fees.............. 1 1 1
Legal fees........ 2 3 1 3 68
Printing &
mailing fees...... 37 74 1 1 66 564
Trustees fees..... 3 4 3 2 4 39
Other fees........ 5
------- -------- ------- ------ ------ ---- -------- --------
845 1,540 112 46 134 27 977 11,039
Less expenses
reimbursed (Note
C)................ 1 17 4 78 9
------- -------- ------- ------ ------ ---- -------- --------
845 1,539 95 42 56 18 977 11,039
------- -------- ------- ------ ------ ---- -------- --------
Net Investment
Income/(Loss)...... 584 (497) 2,119 (15) 18 (2) 8,880 38,514
REALIZED AND
UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized
gain/(loss) on
sales of
investments....... (2,104) 26,575 (186) 133 714 190 (5,679) 516,452
Increase in
unrealized
appreciation/(depreciation)
of:
Investments....... 5,960 (17,156) (2,724) 2,120 578 80 (5,829) 38,349
Foreign currency
translation.......
Futures........... 7
------- -------- ------- ------ ------ ---- -------- --------
Net realized and
unrealized
gain/(loss) on
investments....... 3,856 9,419 (2,910) 2,253 1,299 270 (11,508) 554,801
------- -------- ------- ------ ------ ---- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations........ $ 4,440 $ 8,922 $ (791) $2,238 $1,317 $268 $ (2,628) $593,315
======= ======== ======= ====== ====== ==== ======== ========
</TABLE>
(*) Commenced investment operations on August 31, 1999.
See notes to financial statements.
39
<PAGE>
STATEMENT OF OPERATIONS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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................... $ 78,945 $ 4,812 $ 71 $ 114 $ 30 $1,478 $ 3,939
Dividends (Note B)......... 25,009 1,037 1,085 4,649 15
-------- ------- ------- ------- ------- ------ -------
103,954 4,812 1,108 1,199 4,679 1,493 3,939
Expenses
Investment advisory fee
(Note C)................... 10,790 216 513 582 0 111 488
Auditors fees.............. 216 11 10 10 24 7 10
Custodian fees............. 452 49 62 160 173 58 73
Fidelity Bond fees......... 1 1 1 1
Legal fees................. 58 1 1 1 5
Printing & mailing fees.... 357 29 24 16 57 19
Trustees fees.............. 34 3 3 3 5 2 3
Other fees................. 4 10
-------- ------- ------- ------- ------- ------ -------
11,912 309 613 773 275 178 594
Less expenses reimbursed
(Note C)................... 6 92 275 42 1
-------- ------- ------- ------- ------- ------ -------
11,912 309 607 681 136 593
-------- ------- ------- ------- ------- ------ -------
Net Investment Income....... 92,042 4,503 501 518 4,679 1,357 3,346
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) on
sales of investments....... 287,125 (1,350) 950 4,853 14,409 (275) (178)
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ (97,986) (1,085) (3,703) 15,077 45,659 (223) (5,951)
Foreign currency
translation................ 11,252 (7) 1,134
Futures.................... (316) 99 75
-------- ------- ------- ------- ------- ------ -------
Net realized and unrealized
gain/(loss) on investments. 200,075 (2,435) (2,753) 19,923 60,167 (498) (4,920)
-------- ------- ------- ------- ------- ------ -------
Net increase/(decrease) in
net assets resulting from
operations................. $292,117 $ 2,068 $(2,252) $20,441 $64,846 $ 859 $(1,574)
======== ======= ======= ======= ======= ====== =======
</TABLE>
40
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Fundamental Aggressive
Large Cap Growth Mid Cap Growth Balanced Sovereign Bond
------------------------- ------------------- ------------------- -------------------------
Period from Period from
Year Ended Year Ended August 31, 1999 (*) August 31, 1999 (*) Year Ended Year Ended
December 31, December 31, to December 31, to December 31, December 31, December 31,
1999 1998 1999 1999 1999 1998
------------ ------------ ------------------- ------------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 4,048 $ 5,356 $ (11) $ 60 $ 61,745 $ 58,240
Net realized
gain/(loss) on
sales of
investments..... 246,459 104,660 786 73 (25,838) 12,121
Change in net
unrealized
appreciation/(depreciation)
of Investments. 20,524 198,191 2,179 615 (44,681) (3,300)
Foreign
Currency
Translation....
Futures........ 177
---------- ---------- ------ ------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations..... 271,031 308,207 2,954 748 (8,597) 67,061
Distributions to
Shareholders
From:
Net investment
income.......... (3,925) (5,356) (56) (65,478) (58,240)
In excess of net
investment
income..........
Realized gain on
investments..... (208,789) (104,621) (516) (39) (12,168)
In excess of
realized gain...
Capital Paid in. (39)
---------- ---------- ------ ------- -------- --------
Decrease in net
assets
resulting from
distributions... (212,714) (110,016) (516) (95) (65,478) (70,408)
Capital
Contribution.....
Trust Share
Transactions
Proceeds from
shares sold..... 154,558 132,463 6,365 11,694 86,852 120,694
Distributions
reinvested...... 212,714 110,016 516 95 65,478 70,408
Payment for
shares redeemed. (169,880) (68,304) (144) (559) (135,090) (84,404)
---------- ---------- ------ ------- -------- --------
Increase/(decrease)
from trust
share
transactions.... 197,392 174,175 6,737 11,230 17,240 106,698
---------- ---------- ------ ------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 255,709 372,366 9,175 11,883 (56,835) 103,351
NET ASSETS
Beginning of
Period.......... 1,126,764 754,398 907,121 803,770
---------- ---------- ------ ------- -------- --------
End of Period... $1,382,473 $1,126,764 $9,175 $11,883 $850,286 $907,121
========== ========== ====== ======= ======== ========
Analysis of
Trust Share
Transactions:
Sold............ 5,540 5,424 608 1,164 9,038 12,001
Reinvested...... 8,043 4,217 41 9 6,931 7,044
Redeemed........ (6,019) (2,861) (13) (54) (14,198) (8,405)
---------- ---------- ------ ------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 7,564 6,780 636 1,119 1,771 10,640
========== ========== ====== ======= ======== ========
<CAPTION>
Emerging
Markets Equity
----------------------------
Period from
Year Ended May 1, 1998 (*)
December 31, to December 31,
1999 1998
------------ ---------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 27 $ 27
Net realized
gain/(loss) on
sales of
investments..... 1,607 (1,644)
Change in net
unrealized
appreciation/(depreciation)
of Investments. 9,598 (1,312)
Foreign
Currency
Translation.... (142)
Futures........
------------ ---------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 11,090 (2,929)
Distributions to
Shareholders
From:
Net investment
income.......... (17) (16)
In excess of net
investment
income.......... (44)
Realized gain on
investments..... (250)
In excess of
realized gain... (936)
Capital Paid in. (11)
------------ ---------------
Decrease in net
assets
resulting from
distributions... (1,247) (27)
Capital
Contribution..... 445
Trust Share
Transactions
Proceeds from
shares sold..... 29,538 11,982
Distributions
reinvested...... 1,247 27
Payment for
shares redeemed. (15,787) (1,743)
------------ ---------------
Increase/(decrease)
from trust
share
transactions.... 14,998 10,266
------------ ---------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 25,286 7,310
NET ASSETS
Beginning of
Period.......... 7,310
------------ ---------------
End of Period... $32,596 $7,310
============ ===============
Analysis of
Trust Share
Transactions:
Sold............ 3,232 1,271
Reinvested...... 113 4
Redeemed........ (1,719) (243)
------------ ---------------
Net
increase/(decrease)
in shares
outstanding...... 1,626 1,032
============ ===============
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International International
Equity Index Global Equity Equity Small Cap Growth
------------------------- ---------------------------- ----------------- -------------------------
Period from Period from
Year Ended Year Ended Year Ended May 1, 1998(*) August 1, 1999(*) Year Ended Year Ended
December 31, December 31, December 31, to December 31, to December 31, December 31, December 31,
1999 1998 1999 1998 1999 1999 1998
------------ ------------ ------------ --------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 2,404 $ 2,359 $ 168 $ 106 $ 7 $ (679) $ (363)
Net realized
gain/(loss) on
sales of
investments..... 4,750 24,001 (24) (376) 190 24,283 (271)
Change in net
unrealized
appreciation/(depreciation)
of Investments. 48,346 4,183 4,008 176 1,953 41,804 10,212
Foreign
currency
translation.... (133) 107
Futures........ 517 20
-------- -------- ------- ------- ------- -------- -------
Net
increase/(decrease)
in net assets
resulting from
operations..... 55,884 30,650 4,152 (94) 2,170 65,408 9,578
Distributions to
Shareholders
From:
Net investment
income.......... (2,382) (2,321) (122) (99) (12)
In excess of net
investment
income.......... (65)
Realized gain on
investments..... (4,633) (24,366) (175) (21,491)
In excess of
realized gain... (583)
Capital Paid in. (7)
-------- -------- ------- ------- ------- -------- -------
Decrease in net
assets
resulting from
distributions... (7,598) (26,687) (187) (106) (187) (21,491)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 62,080 24,581 4,747 17,755 10,271 66,717 31,182
Distributions
reinvested...... 7,598 26,687 187 106 187 21,491
Payment for
shares redeemed. (47,084) (34,453) (1,869) (2,380) (11) (27,404) (14,672)
-------- -------- ------- ------- ------- -------- -------
Increase/(decrease)
from trust
share
transactions.... 22,594 16,815 3,065 15,481 10,447 60,804 16,510
-------- -------- ------- ------- ------- -------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 70,880 20,778 7,030 15,281 12,430 104,721 26,088
NET ASSETS
Beginning of
Period.......... 173,137 152,359 15,281 74,849 48,761
-------- -------- ------- ------- ------- -------- -------
End of Period... $244,017 $173,137 $22,311 $15,281 $12,430 $179,570 $74,849
======== ======== ======= ======= ======= ======== =======
Analysis of Trust
Share
Transactions:
Sold............ 3,668 1,470 447 1,800 1,024 4,233 2,779
Reinvested...... 428 1,703 18 11 17 1,245
Redeemed........ (2,802) (2,070) (174) (263) (1) (1,847) (1,314)
-------- -------- ------- ------- ------- -------- -------
Net
increase/(decrease)
in shares
outstanding...... 1,294 1,103 291 1,548 1,040 3,631 1,465
======== ======== ======= ======= ======= ======== =======
<CAPTION>
International Balanced
-------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 813 $ 887
Net realized
gain/(loss) on
sales of
investments..... 1,839 609
Change in net
unrealized
appreciation/(depreciation)
of Investments. (519) 2,412
Foreign
currency
translation.... (606) 660
Futures........
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 1,527 4,568
Distributions to
Shareholders
From:
Net investment
income.......... (565) (887)
In excess of net
investment
income..........
Realized gain on
investments..... (1,221) (1,103)
In excess of
realized gain... (615)
Capital Paid in. (230) (24)
------------ ------------
Decrease in net
assets
resulting from
distributions... (2,631) (2,014)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 6,406 6,272
Distributions
reinvested...... 2,631 2,014
Payment for
shares redeemed. (6,772) (5,844)
------------ ------------
Increase/(decrease)
from trust
share
transactions.... 2,265 2,442
------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 1,161 4,996
NET ASSETS
Beginning of
Period.......... 30,416 25,420
------------ ------------
End of Period... $31,577 $30,416
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 590 581
Reinvested...... 251 184
Redeemed........ (625) (545)
------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 216 220
============ ============
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
42
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Mid Cap Large Cap Large Cap Large/Mid
Mid Cap Growth Blend Value Value CORE Cap Value
------------------------- ------------------ ------------------------- ------------------ ------------------
Period from Period from Period from
Year Ended Year Ended August 31, 1999(*) Year Ended Year Ended August 31, 1999(*) August 31, 1999(*)
December 31, December 31, to December 31, December 31, December 31, to December 31, to December 31,
1999 1998 1999 1999 1998 1999 1999
------------ ------------ ------------------ ------------ ------------ ------------------ ------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss).... $ (1,351) $ (383) $ 14 $ 2,774 $ 2,071 $ 21 $ 17
Net realized
gain/(loss) on
sales of
investments...... 55,989 8,102 268 7,671 4,295 100 11
Change in net
unrealized
appreciation
(depreciation) of
Investments..... 148,557 15,541 306 (7,556) 2,592 70 221
Foreign Currency
Translation..... (33) 75
Futures......... 8
-------- ------- ------ -------- -------- ------ ------
Net
increase/(decrease)
in net assets
resulting from
operations....... 203,162 23,335 588 2,889 8,958 199 249
Distributions to
Shareholders From:
Net investment
income........... (13) (2,733) (2,052) (19) (15)
Realized gain on
investments...... (46,186) (7,468) (204) (7,756) (4,289) (82) (11)
In excess of
realized gain.... (28) (4) (4)
Capital Paid in.. (833) (21) (9)
-------- ------- ------ -------- -------- ------ ------
Decrease in net
assets resulting
from
distributions.... (46,186) (8,301) (217) (10,517) (6,362) (114) (30)
Capital
Contribution.....
Trust Share
Transactions
Proceeds from
shares sold...... 192,846 40,746 5,275 64,676 53,200 6,323 5,905
Distributions
reinvested....... 46,186 8,301 217 10,517 6,362 114 30
Payment for
shares redeemed.. (37,156) (10,231) (53) (35,081) (12,062) (151) (53)
-------- ------- ------ -------- -------- ------ ------
Increase/(decrease)
from trust share
transactions..... 201,876 38,816 5,439 40,112 47,500 6,286 5,882
-------- ------- ------ -------- -------- ------ ------
NET
INCREASE/(DECREASE)
IN NET ASSETS..... 358,852 53,850 5,810 32,484 50,096 6,371 6,101
NET ASSETS
Beginning of
Period........... 94,085 40,235 123,365 73,269
-------- ------- ------ -------- -------- ------ ------
End of Period.... $452,937 $94,085 $5,810 $155,849 $123,365 $6,371 $6,101
======== ======= ====== ======== ======== ====== ======
Analysis of Trust
Share
Transactions:
Sold............. 9,353 3,075 526 4,383 3,809 630 588
Reinvested....... 1,749 549 22 774 455 12 3
Redeemed......... (1,830) (774) (5) (2,404) (864) (15) (5)
-------- ------- ------ -------- -------- ------ ------
Net
increase/(decrease)
in shares
outstanding....... 9,272 2,850 543 2,753 3,400 627 586
======== ======= ====== ======== ======== ====== ======
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
43
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small/Mid Cap
Money Market Mid Cap Value Growth
------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, 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/(loss)... $ 19,133 $ 15,838 $ 584 $ 820 $ (497) $ (217)
Net realized
gain/(loss) on
sales of
investments..... (2,104) (8,690) 26,575 2,111
Change in net
unrealized
appreciation/(depreciation)
of Investments. 5,960 (4,194) (17,156) 8,644
Foreign
Currency
Translation....
Futures........
--------- --------- -------- -------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations..... 19,133 15,838 4,440 (12,064) 8,922 10,538
Distributions to
Shareholders
From:
Net investment
income.......... (19,133) (15,838) (580) (820) (26,069)
Realized gain on
investments..... (1,884) (3,671)
Capital Paid in.
--------- --------- -------- -------- -------- --------
Decrease in net
assets
resulting from
distributions... (19,133) (15,838) (580) (820) (27,953) (3,671)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 557,157 386,221 29,586 63,576 22,355 18,908
Distributions
reinvested...... 19,133 15,838 580 820 27,953 3,671
Payment for
shares redeemed. (520,250) (236,307) (36,696) (21,665) (42,678) (49,726)
--------- --------- -------- -------- -------- --------
Increase/(decrease)
from trust
share
transactions.... 56,040 165,752 (6,530) 42,731 7,630 (27,147)
--------- --------- -------- -------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 56,040 165,752 (2,670) 29,847 (11,401) (20,280)
NET ASSETS
Beginning of
Period.......... 395,195 229,443 94,820 64,973 193,332 213,612
--------- --------- -------- -------- -------- --------
End of Period... $ 451,235 $ 395,195 $ 92,150 $ 94,820 $181,931 $193,332
========= ========= ======== ======== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 55,717 38,622 2,380 4,722 1,398 1,216
Reinvested...... 1,913 1,584 48 66 2,105 230
Redeemed........ (52,025) (23,631) (2,997) (1,693) (2,669) (3,201)
--------- --------- -------- -------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 5,605 16,575 (569) 3,095 834 (1,755)
========= ========= ======== ======== ======== ========
<CAPTION>
Large Cap
Aggressive
Bond Index Growth
---------------------------- -------------------
Period from Period from
Year Ended May 1, 1998 (*) August 31, 1999 (*)
December 31, to December 31, to December 31,
1999 1998 1999
------------ --------------- -------------------
<S> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 2,119 $ 1,089 $ (15)
Net realized
gain/(loss) on
sales of
investments..... (186) 267 133
Change in net
unrealized
appreciation/(depreciation)
of Investments. (2,724) 458 2,120
Foreign
Currency
Translation....
Futures........
------------ --------------- -------------------
Net
increase/(decrease)
in net assets
resulting from
operations..... (791) 1,814 2,238
Distributions to
Shareholders
From:
Net investment
income.......... (2,057) (1,089)
Realized gain on
investments..... (267) (93)
Capital Paid in.
------------ --------------- -------------------
Decrease in net
assets
resulting from
distributions... (2,057) (1,356) (93)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 14,617 26,269 12,920
Distributions
reinvested...... 2,057 1,356 93
Payment for
shares redeemed. (3,391) (82) (84)
------------ --------------- -------------------
Increase/(decrease)
from trust
share
transactions.... 13,283 27,543 12,929
------------ --------------- -------------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 10,435 28,001 15,074
NET ASSETS
Beginning of
Period.......... 28,001
------------ --------------- -------------------
End of Period... $38,436 $28,001 $15,074
============ =============== ===================
Analysis of Trust
Share
Transactions:
Sold............ 1,516 2,623 1,262
Reinvested...... 213 133 8
Redeemed........ (352) (8) (7)
------------ --------------- -------------------
Net
increase/(decrease)
in shares
outstanding...... 1,377 2,748 1,263
============ =============== ===================
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
44
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small/Mid Cap CORE Small/Mid Cap Value Real Estate Equity Growth & Income
---------------------------- ------------------- ------------------------- -------------------------
Period from Period from
Year Ended May 1, 1998 (*) August 31, 1999 (*) Year Ended Year Ended Year Ended Year Ended
December 31, to December 31, to December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1999 1998 1999 1998
------------ --------------- ------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 18 $ (2) $ 8,880 $ 9,787 $ 38,514 $ 39,405
Net realized
gain/(loss) on
sales of
investments..... 714 $ (750) 190 (5,679) 1,614 516,452 320,993
Change in net
unrealized
appreciation/(depreciation)
of Investments.. 578 264 80 (5,829) (44,965) 38,349 486,604
Foreign
Currency
Translation.... 7
Futures........
------- ------ ------ -------- -------- ---------- ----------
Net
increase/(decrease)
in net assets
resulting from
operations..... 1,317 (486) 268 (2,628) (33,564) 593,315 847,002
Distributions to
Shareholders
From:
Net investment
income.......... (18) (8,957) (8,848) (37,895) (39,405)
Realized gain on
investments..... (185) (1,695) (444,028) (320,993)
In excess of
realized gain... (715)
Capital Paid in. (58)
------- ------ ------ -------- -------- ---------- ----------
Decrease in net
assets
resulting from
distributions... (733) (185) (8,957) (10,601) (481,923) (360,398)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 5,301 6,188 5,326 19,688 22,171 271,718 265,420
Distributions
reinvested...... 733 185 8,957 10,601 481,923 360,398
Payment for
shares redeemed. (3,385) (687) (24) (43,635) (39,949) (316,977) (227,601)
------- ------ ------ -------- -------- ---------- ----------
Increase/(decrease)
from trust
share
transactions.... 2,649 5,501 5,487 (14,990) (7,177) 436,664 398,217
------- ------ ------ -------- -------- ---------- ----------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 3,233 5,015 5,570 (26,575) (51,342) 548,056 884,821
NET ASSETS
Beginning of
Period.......... 5,015 152,789 204,131 3,670,785 2,785,964
------- ------ ------ -------- -------- ---------- ----------
End of Period... $ 8,248 $5,015 $5,570 $126,214 $152,789 $4,218,841 $3,670,785
======= ====== ====== ======== ======== ========== ==========
Analysis of Trust
Share
Transactions:
Sold............ 557 636 533 1,643 1,549 13,198 14,254
Reinvested...... 80 19 756 778 24,670 18,597
Redeemed........ (353) (80) (2) (3,662) (2,894) (15,364) (12,305)
------- ------ ------ -------- -------- ---------- ----------
Net
increase/(decrease)
in shares
outstanding...... 284 556 550 (1,263) (567) 22,504 20,546
======= ====== ====== ======== ======== ========== ==========
<CAPTION>
Managed
-------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 92,042 $ 90,312
Net realized
gain/(loss) on
sales of
investments..... 287,125 215,053
Change in net
unrealized
appreciation/(depreciation)
of Investments.. (97,986) 261,761
Foreign
Currency
Translation.... 11,252 (4,875)
Futures........ (316)
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 292,117 562,251
Distributions to
Shareholders
From:
Net investment
income.......... (89,766) (90,312)
Realized gain on
investments..... (236,198) (212,457)
In excess of
realized gain...
Capital Paid in. (10,444)
------------ ------------
Decrease in net
assets
resulting from
distributions... (325,964) (313,213)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 229,925 187,045
Distributions
reinvested...... 325,964 313,213
Payment for
shares redeemed. (393,033) (247,513)
------------ ------------
Increase/(decrease)
from trust
share
transactions.... 162,856 252,745
------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 129,009 501,783
NET ASSETS
Beginning of
Period.......... 3,301,910 2,800,127
------------ ------------
End of Period... $3,430,919 $3,301,910
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 14,370 12,059
Reinvested...... 21,188 20,147
Redeemed........ (24,638) (16,174)
------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 10,920 16,032
============ ============
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
45
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International
Short-Term Bond Small Cap Value Opportunities
------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, 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.......... $ 4,503 $ 3,965 $ 501 $ 352 $ 518 $ 435
Net realized
gain/(loss) on
sales of
investments..... (1,350) (82) 950 (4,544) 4,853 (303)
Change in net
unrealized
appreciation/(depreciation)
of
Investments.... (1,085) (325) (3,703) 253 15,077 6,179
Foreign
Currency
Translation.... (7) 12
Futures........
-------- -------- -------- -------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations..... 2,068 3,558 (2,252) (3,939) 20,441 6,323
Distributions to
Shareholders
From:
Net investment
income.......... (4,483) (3,946) (419) (352) (565) (416)
In excess of net
investment
income.......... (2)
Realized gain on
investments..... (92) (4,643)
In excess of
realized gain... (1,087) (180)
Capital Paid in.
-------- -------- -------- -------- -------- --------
Decrease in net
assets
resulting from
distributions... (4,483) (3,946) (1,598) (352) (5,389) (416)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 33,554 48,539 26,942 35,658 34,115 41,865
Distributions
reinvested...... 4,483 3,946 1,598 352 5,389 416
Payment for
shares redeemed. (43,972) (26,023) (19,885) (10,885) (39,012) (14,569)
-------- -------- -------- -------- -------- --------
Increase/(decrease)
from trust
share
transactions.... (5,935) 26,462 8,655 25,125 492 27,712
-------- -------- -------- -------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... (8,350) 26,074 4,805 20,834 15,544 33,619
NET ASSETS
Beginning of
Period.......... 77,194 51,120 64,095 43,261 64,250 30,631
-------- -------- -------- -------- -------- --------
End of Period... $ 68,844 $ 77,194 $ 68,900 $ 64,095 $ 79,794 $ 64,250
======== ======== ======== ======== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 3,382 4,790 2,410 2,952 2,657 3,600
Reinvested...... 455 390 152 31 388 36
Redeemed........ (4,438) (2,568) (1,782) (940) (3,046) (1,258)
-------- -------- -------- -------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... (601) 2,612 780 2,043 (1) 2,378
======== ======== ======== ======== ======== ========
<CAPTION>
Equity Index
-------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 4,679 $ 2,567
Net realized
gain/(loss) on
sales of
investments..... 14,409 3,458
Change in net
unrealized
appreciation/(depreciation)
of
Investments.... 45,659 34,583
Foreign
Currency
Translation....
Futures........ 99
------------ ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 64,846 40,608
Distributions to
Shareholders
From:
Net investment
income.......... (4,536) (2,483)
In excess of net
investment
income..........
Realized gain on
investments..... (13,884) (3,661)
In excess of
realized gain...
Capital Paid in.
------------ ------------
Decrease in net
assets
resulting from
distributions... (18,420) (6,144)
Capital
Contribution....
Trust Share
Transactions
Proceeds from
shares sold..... 220,255 117,380
Distributions
reinvested...... 18,420 6,144
Payment for
shares redeemed. (66,383) (26,800)
------------ ------------
Increase/(decrease)
from trust
share
transactions.... 172,292 96,724
------------ ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 218,718 131,188
NET ASSETS
Beginning of
Period.......... 232,578 101,390
------------ ------------
End of Period... $451,296 $232,578
============ ============
Analysis of Trust
Share
Transactions:
Sold............ 11,477 7,345
Reinvested...... 939 363
Redeemed........ (3,495) (1,703)
------------ ------------
Net
increase/(decrease)
in shares
outstanding...... 8,921 6,005
============ ============
</TABLE>
See notes to financial statements.
46
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
High Yield Bond Global Bond
---------------------------- -------------------------
Period from
Year Ended May 1, 1998 (*) Year Ended Year Ended
December 31, to December 31, December 31, December 31,
1999 1998 1999 1998
------------ --------------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET
ASSETS
From Operations
Net investment income...... $ 1,357 $ 565 $ 3,346 $ 2,456
Net realized gain/(loss) on
sales of investments....... (275) 7 (178) (559)
Change in net unrealized
appreciation/(depreciation)
of
Investments............... (223) (566) (5,951) 2,172
Foreign Currency
Translation............... 1,134 21
Futures................... 75
-------- ------- -------- --------
Net increase/(decrease)
in net assets resulting
from operations........... 859 6 (1,574) 4,090
Distributions to
Shareholders From:
Net investment income...... (1,323) (565) (3,871) (1,387)
Realized gain on
investments................ (7) (534)
Capital Paid in............ (891)
-------- ------- -------- --------
Decrease in net assets
resulting from
distributions.............. (1,323) (572) (3,871) (2,812)
Capital Contribution.......
Trust Share Transactions
Proceeds from shares sold.. 18,264 16,627 29,103 45,716
Distributions reinvested... 1,323 572 3,871 2,812
Payment for shares
redeemed................... (13,991) (1,844) (23,329) (11,662)
-------- ------- -------- --------
Increase/(decrease) from
trust share transactions... 5,596 15,355 9,645 36,866
-------- ------- -------- --------
NET INCREASE/(DECREASE) IN
NET ASSETS.................. 5,132 14,789 4,200 38,144
NET ASSETS
Beginning of Period........ 14,789 66,791 28,647
-------- ------- -------- --------
End of Period.............. $ 19,921 $14,789 $ 70,991 $ 66,791
======== ======= ======== ========
Analysis of Trust Share
Transactions:
Sold....................... 2,003 1,741 2,816 4,340
Reinvested................. 146 61 382 266
Redeemed................... (1,534) (200) (2,269) (1,102)
-------- ------- -------- --------
Net increase/(decrease) in
shares outstanding.......... 615 1,602 929 3,504
======== ======= ======== ========
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
47
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------------ -----------------------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) on Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- ----------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Year Ended
December 31,
1999............ $26.19 $ 0.09 $ 6.03 $ 6.12 $(0.09) $(4.89) $-- $ --
1998............ 20.82 0.14 8.05 8.19 (0.14) (2.68) -- --
1997............ 17.49 0.17 5.21 5.38 (0.17) (1.88) -- --
1996............ 17.37 0.25 2.89 3.14 (0.25) (2.77) -- --
1995............ 14.41 0.44 4.06 4.50 (0.44) (0.84) -- (0.26)
------------------------------------------------------------------------------------------------------------------------------
Fundamental Mid
Cap Growth
Period from
August 31, to
December 31,
1999 (c)........ 10.00 (0.02) 5.34 5.32 -- (0.90) -- --
------------------------------------------------------------------------------------------------------------------------------
Aggressive
Balanced
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.06 .64 .70 (.05) (0.03) -- --
------------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Year Ended
December 31,
1999............ 9.92 0.67 (0.76) (0.09) (0.71) -- -- --
1998............ 9.95 0.69 0.11 0.80 (0.69) (0.14) -- --
1997............ 9.77 0.71 0.24 0.95 (0.71) (0.06) -- --
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- --
1995............ 9.19 0.71 1.03 1.74 (0.71) (0.09) -- --
------------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Equity
Year Ended
December 31,
1999*........... 7.09 0.03 5.67 5.70 (0.01) (0.10) (0.42) --
Period from May
1, to
December 31,
1998 (c)........ 10.00 0.03 (2.91) (2.88) (0.02) -- -- (0.01)
------------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Year Ended
December 31,
1999............ 15.56 0.21 4.51 4.72 (0.21) (0.38) (0.05) --
1998............ 15.20 0.23 2.91 3.14 (0.23) (2.55) -- --
1997............ 16.83 0.13 (0.97) (0.84) (0.13) (0.66) -- --
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- --
1995............ 14.62 0.17 0.99 1.16 (0.16) -- -- (0.01)
------------------------------------------------------------------------------------------------------------------------------
<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
Total End (000's) Investment (000's) Average Average Turnover
Distributions of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- ---------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Year Ended
December 31,
1999............ $(4.98) $27.33 50,580 24.07% $1,382,473 0.39% 0.33% 37.42%
1998............ (2.82) 26.19 43,016 39.51% 1,126,764 0.41% 0.59% 56.41%
1997............ (2.05) 20.82 36,236 30.89% 754,398 0.44% 0.86% 83.82%
1996............ (3.02) 17.49 29,965 18.27% 524,145 0.44% 1.35% 135.98%
1995............ (1.54) 17.37 21,895 31.64% 380,276 0.47% 2.70% 90.18%
------------------------------------------------------------------------------------------------------------------------------
Fundamental Mid
Cap Growth
Period from
August 31, to
December 31,
1999 (c)........ (0.90) 14.42 636 54.57%(e) 9,175 0.95%(d)(1) (0.55)%(d) 61.66%(e)
------------------------------------------------------------------------------------------------------------------------------
Aggressive
Balanced
Period from
August 31, to
December 31,
1999 (c)........ (0.08) 10.62 1,119 7.09%(e) 11,883 0.78%(d)(2) 1.68%(d) 70.28%(e)
------------------------------------------------------------------------------------------------------------------------------
Sovereign Bond
Year Ended
December 31,
1999............ (0.71) 9.12 93,200 (0.94)% 850,286 0.28% 6.97% 182.90%
1998............ (0.83) 9.92 91,429 8.23% 907,121 0.29% 6.84% 228.74%
1997............ (0.77) 9.95 80,789 10.11% 803,770 0.31% 7.18% 138.29%
1996............ (0.74) 9.77 74,315 4.10% 726,111 0.29% 7.07% 119.12%
1995............ (0.80) 10.13 69,148 19.55% 700,309 0.30% 7.20% 63.31%
------------------------------------------------------------------------------------------------------------------------------
Emerging Markets
Equity
Year Ended
December 31,
1999*........... (0.53) 12.26 2,658 81.37%(t) 32,596 1.39%(i) 0.19% 196.32%
Period from May
1, to
December 31,
1998 (c)........ (0.03) 7.09 1,032 (28.87)%(e) 7,310 1.55 %(d)(i) 0.51%(d) 53.95%(e)
------------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Year Ended
December 31,
1999............ (0.64) 19.64 12,421 30.87% 244,017 0.31%(g) 1.26% 19.01%
1998............ (2.78) 15.56 11,127 20.82% 173,137 0.56%(g) 1.45% 158.63%
1997............ (0.79) 15.20 10,024 (5.03)% 152,359 0.79% 0.78% 83.13%
1996............ (0.21) 16.83 9,254 9.19% 155,753 0.76% 1.30% 92.03%
1995............ (0.17) 15.61 8,123 8.01% 126,803 0.84%(g) 1.34% 65.82%
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- ---------------------------------------------------
Net Realized Distribution Distribution
Net Asset and Total Distribution From Net in Excess Distribution
Value at Net Unrealized From From Net Gains of Net From
Beginning Investment Gain/(Loss) on Investment Investment on Investment Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Global Equity
Year ended
December 31,
1999............ $ 9.87 $ 0.10 $ 2.27 $ 2.37 $(0.07) $ -- $(0.04) $ --
Period from May
1, to December
31, 1998 (c).... 10.00 0.07 (0.13) (0.06) (0.07) -- -- --
----------------------------------------------------------------------------------------------------------------------------
International
Equity
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.01 2.12 2.13 (0.01) (0.17) --
----------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Year ended
December 31,
1999............ 12.99 (0.21) 9.06 8.85 -- (2.72) -- --
1998............ 11.34 (0.05) 1.70 1.65 -- -- -- --
1997............ 9.93 (0.02) 1.44 1.42 -- -- -- (0.01)
Period from May
1, to December
31, 1996 (c).... 10.00 0.01 (0.06) (0.05) (0.02) -- -- --
----------------------------------------------------------------------------------------------------------------------------
International
Balanced
Year ended
December 31,
1999............ 11.12 0.29 0.25 0.54 (0.29) (0.44) (0.16) (0.06)
1998............ 10.11 0.34 1.44 1.78 (0.34) (0.42) -- (0.01)
1997............ 10.39 0.33 (0.05) 0.28 (0.33) (0.22) -- (0.01)
Period from May
1, to December
31, 1996 (c).... 10.00 0.24 0.41 0.65 (0.24) (0.02) -- --
----------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Year ended
December 31,
1999............ 15.12 (0.19) 17.70 17.51 -- (3.41) -- --
1998............ 11.93 (0.09) 4.75 4.66 -- (1.32) -- (0.15)
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) -- -- --
----------------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.03 1.10 1.13 (0.03) (0.40) -- --
----------------------------------------------------------------------------------------------------------------------------
<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
Total End (000's) Investment (000's) Average Average Turnover
Distributions of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Global Equity
Year ended
December 31,
1999............ $(0.11) $12.13 1,839 24.19% $ 22,311 1.04%(w) 0.96% 49.51%
Period from May
1, to December
31, 1998 (c).... (0.07) 9.87 1,548 (0.55)%(e) 15,281 1.15%(d)(w) 1.11%(d) 33.17%(e)
----------------------------------------------------------------------------------------------------------------------------
International
Equity
Period from
August 31, to
December 31,
1999 (c)........ (0.18) 11.95 1,040 21.49%(e) 12,430 1.10%(3)(d) 0.21%(d) 26.76%(e)
----------------------------------------------------------------------------------------------------------------------------
Small Cap Growth
Year ended
December 31,
1999............ (2.72) 19.12 9,394 70.38% 179,570 0.89% (0.70)% 113.11%
1998............ -- 12.99 5,763 14.49% 74,849 1.00%(k) (0.65)% 101.16%
1997............ (0.01) 11.34 4,298 14.26% 48,761 1.00%(k) (0.28)% 86.23%
Period from May
1, to December
31, 1996 (c).... (0.02) 9.93 2,077 (0.50)%(e) 20,633 1.00%(d)(k) 0.12%(d) 50.93%(e)
----------------------------------------------------------------------------------------------------------------------------
International
Balanced
Year ended
December 31,
1999............ (0.95) 10.71 2,950 5.11% 31,577 1.00%(l) 2.73% 131.21%
1998............ (0.77) 11.12 2,734 17.99% 30,416 1.10%(l) 3.20% 103.55%
1997............ (0.56) 10.11 2,514 2.65% 25,420 1.10%(l) 3.18% 81.04%
Period from May
1, to December
31, 1996 (c).... (0.26) 10.39 2,319 6.73%(e) 24,098 1.10%(d)(l) 3.59%(d) 22.21%(e)
----------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Year ended
December 31,
1999............ (3.41) 29.22 15,496 118.31% 452,937 0.93% (0.68)% 106.06%
1998............ (1.47) 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%(m) (0.26)% 124.04%
Period from May
1, to December
31, 1996 (c).... (0.05) 10.22 1,613 2.69%(e) 16,492 1.10%(d)(m) 0.92%(d) 71.25%(e)
----------------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Period from
August 31, to
December 31,
1999 (c)........ (0.43) 10.70 543 11.53%(e) 5,810 0.85%(4)(d) 0.82%(d) 55.68%(e)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
49
<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 Distribution
Net Asset and Total Distribution From Net in excess Distribution
Value at Net Unrealized From From Net Gains of Net From
Beginning Investment Gain/(Loss) Investment Investment on Investment Capital
of Period Income on Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- ----------------- ---------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value
Year ended
December 31,
1999............ $14.02 $0.27 $0.18 $0.45 $(0.27) $(0.71) $ -- $ --
1998............ 13.57 0.28 0.96 1.24 (0.28) (0.51) -- --
1997............ 11.09 0.29 2.84 3.13 (0.29) (0.36) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.16 1.22 1.38 (0.16) (0.13) -- --
--------------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.04 0.31 0.35 (0.03) (0.14) (0.01) (0.01)
--------------------------------------------------------------------------------------------------------------------------
Large/Mid Cap
Value
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.03 0.45 0.48 (0.03) (0.02) (0.01) --
--------------------------------------------------------------------------------------------------------------------------
Money Market
Year ended
December 31,
1999............ 10.00 0.45 -- 0.45 (0.45) -- -- --
1998............ 10.00 0.53 -- 0.53 (0.53) -- -- --
1997............ 10.00 0.53 -- 0.53 (0.53) -- -- --
1996............ 10.00 0.52 -- 0.52 (0.52) -- -- --
1995............ 10.00 0.57 -- 0.57 (0.57) -- -- --
--------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Year ended
December 31,
1999............ 12.19 0.08 0.59 0.67 (0.08) -- -- --
1998............ 13.87 0.11 (1.68) (1.57) (0.11) -- -- --
1997............ 11.35 0.05 3.59 3.64 (0.05) (1.07) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.04 1.57 1.61 (0.04) (0.22) -- --
--------------------------------------------------------------------------------------------------------------------------
<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
Total End (000's) Investment (000's) Average Average Turnover
Distributions of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
------------- --------- ----------- ------------ ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value
Year ended
December 31,
1999............ $(0.98) $13.49 11,552 3.28% $155,849 0.85% 1.88% 32.62%
1998............ (0.79) 14.02 8,799 9.26% 123,365 0.92% 2.08% 18.46%
1997............ (0.65) 13.57 5,399 28.56% 73,269 1.00%(n) 2.42% 19.21%
Period from May
1, to December
31, 1996 (c).... (0.29) 11.09 1,784 13.90%(e) 19,781 1.00%(n)(d) 2.74%(d) 19.95%(e)
--------------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Period from
August 31, to
December 31,
1999 (c)........ (0.19) 10.16 627 3.58%(e) 6,371 0.85%(5)(d) 1.13%(d) 30.90%(d)
--------------------------------------------------------------------------------------------------------------------------
Large/Mid Cap
Value
Period from
August 31, to
December 31,
1999 (c)........ (0.06) 10.42 586 4.72%(e) 6,101 1.05%(6)(d) 0.94%(d) 23.03%(d)
--------------------------------------------------------------------------------------------------------------------------
Money Market
Year ended
December 31,
1999............ (0.45) 10.00 45,124 5.05% 451,235 0.31% 4.95% --
1998............ (0.53) 10.00 39,519 5.40% 395,195 0.31% 5.29% --
1997............ (0.53) 10.00 22,944 5.38% 229,443 0.33% 5.32% --
1996............ (0.52) 10.00 21,324 5.32% 213,235 0.30% 5.20% --
1995............ (0.57) 10.00 18,591 5.78% 185,909 0.35% 5.62% --
--------------------------------------------------------------------------------------------------------------------------
Mid Cap Value
Year ended
December 31,
1999............ (0.08) 12.78 7,212 5.52% 92,150 0.92% 0.64% 137.06%
1998............ (0.11) 12.19 7,781 (11.33)% 94,820 0.96% 0.93% 173.33%
1997............ (1.12) 13.87 4,686 32.17% 64,973 1.05%(o) 0.53% 93.78%
Period from May
1, to December
31, 1996 (c).... (0.26) 11.35 963 16.18%(e) 10,926 1.05%(d)(o) 0.69%(d) 62.99%(e)
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
50
<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 Distributions
Net Asset and Total Distribution From Net in Excess of Distributions
Value at Net Unrealized From From Net Gains Net From
Beginning Investment Gain/(Loss) Investment Investment on Investment Capital
of Period Income/(Loss) on Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- ----------------- ---------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small/Mid Cap
Growth
Year ended
December 31,
1999............ $15.94 $(0.07) $0.74 $0.67 $-- $(2.41) -- $(0.17)
1998............ 15.39 (0.02) 0.88 0.86 -- (0.31) -- --
1997............ 16.52 0.01 0.56 0.57 (0.01) (1.69) -- --
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- --
1995............ 9.94 (0.01) 3.58 3.57 -- (0.32) -- (0.01)
-----------------------------------------------------------------------------------------------------------------------------
Bond Index
Year ended
December 31,
1999............ 10.19 0.63 (0.89) (0.26) (0.61) -- -- --
Period from May
1, to December
31, 1998 (c).... 10.00 0.42 0.29 0.71 (0.42) (0.10) -- --
-----------------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Period from
August 31, to
December 31,
1999 (c)........ 10.00 (0.01) 2.03 2.02 -- (0.08) -- --
-----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Year ended
December 31,
1999............ 9.02 0.02 1.77 1.79 (0.03) (0.96) -- --
Period from May
1, to December
31, 1998 (c).... 10.00 -- (0.98) (0.98) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Value
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.49 0.49 -- (0.36) -- --
-----------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Year ended
December 31,
1999............ 12.46 0.78 (0.99) (0.21) (0.78) -- -- --
1998............ 15.91 0.77 (3.38) (2.61) (0.70) (0.14) -- --
1997............ 14.64 0.77 1.68 2.45 (0.71) (0.41) -- (0.06)
1996............ 11.70 0.76 2.97 3.73 (0.76) (0.03) -- --
1995............ 11.16 0.77 0.54 1.31 (0.77) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------
Net
Number of Assets Net
Net Asset Shares End of Operating Investment
Value at Outstanding Total Period Expenses to Income to Portfolio
Total End of (000's) Investment (000's) Average Average Turnover
Distributions Period Omitted Return(b) Omitted Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small/Mid Cap
Growth
Year ended
December 31,
1999............ $(2.58) $14.03 181,931 5.15% $12,963 0.85% (0.27)% 172.58%
1998............ (0.31) 15.94 193,332 5.61% 12,129 0.89% (0.11)% 162.21%
1997............ (1.70) 15.39 213,612 3.44% 13,884 0.85% 0.09% 331.19%
1996............ (0.67) 16.52 194,108 30.33% 11,749 0.84% 0.18% 217.84%
1995............ (0.33) 13.18 54,486 35.96% 4,133 1.00%(h) (0.11)% 139.31%
-----------------------------------------------------------------------------------------------------------------------------
Bond Index
Year ended
December 31,
1999............ (0.61) 9.32 38,436 (2.57)% 4,125 0.29%(x) 6.56% 17.06%
Period from May
1, to December
31, 1998 (c).... (0.52) 10.19 28,001 7.20%(e) 2,748 0.40%(d)(x) 6.17%(d) 21.09%(e)
-----------------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Period from
August 31, to
December 31,
1999 (c)........ (0.08) 11.94 15,074 20.18%(e) 1,263 1.08%(7)(d) (0.39)%(d) 18.97%(e)
-----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
CORE
Year ended
December 31,
1999............ (0.99) 9.82 8,248 20.54% 840 0.94%(y) 0.30% 109.12%
Period from May
1, to December
31, 1998 (c).... -- 9.02 5,015 (9.81)%(e) 556 1.05%(d)(y) (0.01)%(d) 60.51%(e)
-----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Value
Period from
August 31, to
December 31,
1999 (c)........ (0.36) 10.13 5,570 5.08%(e) 550 1.05%(8)(d) (0.12)%(d) 51.97%(e)
-----------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Year ended
December 31,
1999............ (0.78) 11.47 126,214 (1.69)% 11,000 0.70% 6.38% 12.95%
1998............ (0.84) 12.46 152,789 (16.71)% 12,263 0.69% 5.48% 22.69%
1997............ (1.18) 15.91 204,131 17.22% 12,830 0.69% 5.12% 20.04%
1996............ (0.79) 14.64 151,105 33.07% 10,325 0.69% 6.14% 18.37%
1995............ (0.77) 11.70 108,782 12.31% 9,301 0.73% 6.85% 19.81%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
51
<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 Asset Net Realized Distribution Distribution
Value at Net and Unrealized Total From From Net Distribution in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment From Net Gains Net Investment From Capital
of Period Income Investments(a) Operations Income on Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ -------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth & Income
Year ended
December 31,
1999............ $19.49 $0.20 $2.88 $3.08 $(0.20) $(2.36) $-- $--
1998............ 16.61 0.23 4.75 4.98 (0.23) (1.87) -- --
1997............ 14.65 0.27 4.07 4.34 (0.27) (2.11) -- --
1996............ 13.94 0.34 2.43 2.77 (0.34) (1.72) -- --
1995............ 11.50 0.36 3.53 3.89 (0.36) (1.09) -- --
--------------------------------------------------------------------------------------------------------------------------
Managed
Year ended
December 31,
1999............ 15.64 0.44 0.94 1.38 (0.43) (1.14) -- --
1998............ 14.35 0.46 2.43 2.89 (0.46) (1.09) -- (0.05)
1997............ 13.35 0.59 1.86 2.45 (0.59) (0.78) -- (0.08)
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- --
1995............ 11.96 0.62 2.56 3.18 (0.62) (0.79) -- --
--------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Year ended
December 31,
1999............ 10.05 0.61 (0.33) 0.28 (0.61) -- -- --
1998............ 10.08 0.61 (0.03) 0.58 (0.61) -- -- --
1997............ 10.05 0.59 0.03 0.62 (0.59) -- -- --
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- --
1995............ 9.66 0.50 0.59 1.09 (0.50) (0.02) -- --(f)
--------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Year ended
December 31,
1999............ 11.59 0.09 (0.50) (0.41) (0.07) (0.01) (0.18) --
1998............ 12.40 0.07 (0.81) (0.74) (0.07) -- -- --
1997............ 10.73 0.08 2.66 2.74 (0.08) (0.99) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.96 1.03 (0.07) (0.23) -- --
<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
Total End (000's) Investment (000's) Average Average Turnover
Distributions of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
------------- --------- ----------- ------------ ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth & Income
Year ended
December 31,
1999............ $(2.56) $20.01 210,823 16.23% $4,218,841 0.28% 0.98% 70.16%
1998............ (2.10) 19.49 188,319 30.25% 3,670,785 0.27% 1.24% 48.45%
1997............ (2.38) 16.61 167,773 29.79% 2,785,964 0.28% 1.61% 74.56%
1996............ (2.06) 14.65 139,748 20.10% 2,047,927 0.27% 2.24% 81.02%
1995............ (1.45) 13.94 114,666 34.21% 1,598,585 0.28% 2.70% 73.54%
--------------------------------------------------------------------------------------------------------------------------
Managed
Year ended
December 31,
1999............ (1.57) 15.45 222,091 9.10% 3,430,919 0.36% 2.75% 203.86%
1998............ (1.60) 15.64 211,171 20.42% 3,301,910 0.36% 2.99% 160.57%
1997............ (1.45) 14.35 195,139 18.72% 2,800,127 0.37% 4.18% 200.41%
1996............ (1.80) 13.35 178,745 10.72% 2,386,660 0.36% 4.41% 113.61%
1995............ (1.41) 13.73 152,544 27.09% 2,093,964 0.38% 4.66% 187.67%
--------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Year ended
December 31,
1999............ (0.61) 9.72 7,081 2.96% 68,844 0.43% 6.25% 100.04%
1998............ (0.61) 10.05 7,682 5.82% 77,194 0.53% 6.17% 184.50%
1997............ (0.59) 10.08 5,070 6.41% 51,120 0.57% 5.67% 108.29%
1996............ (0.54) 10.05 5,840 3.61% 58,676 0.75%(j) 5.66% 20.68%
1995............ (0.52) 10.23 1,750 11.49% 17,911 0.75%(j) 5.52% 109.77%
--------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Year ended
December 31,
1999............ (0.26) 10.92 6,311 (3.43)% 68,900 0.95%(p) 0.78% 117.33%
1998............ (0.07) 11.59 5,531 5.96% 64,095 1.05%(p) 0.63% 100.83%
1997............ (1.07) 12.40 3,488 25.57% 43,261 1.05%(p) 0.68% 126.10%
Period from May
1, to December
31, 1996 (c).... (0.30) 10.73 982 10.33%(e) 10,541 1.05%(d)(p) 1.15%(d) 66.31%(e)
</TABLE>
52
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
-------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ ---------------------------------------------------
Net Realized Distribution Distribution
Net Asset and Total Distribution From Net in Excess of Distribution
Value at Net Unrealized From From Net Gains Net From
Beginning Investment Gain/(Loss) on Investment Investment on Investment Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International Op-
portunities
Year ended
December 31,
1999............ $12.21 $0.10 $3.95 $4.05 $(0.11) $(0.94) $(0.04) $ --
1998............ 10.63 0.11 1.57 1.68 (0.10) -- -- --
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- --
Period from May
1, to
December 31,
1996 (c)........ 10.00 0.07 0.60 0.67 (0.07) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Equity Index
Year ended
December 31,
1999............ 17.70 0.27 3.41 3.68 (0.26) (0.66) -- --
1998............ 14.21 0.25 3.76 4.01 (0.24) (0.28) -- --
1997............ 11.10 0.24 3.41 3.65 (0.24) (0.25) -- (0.05)
Period from May
1, to
December 31,
1996 (c)........ 10.00 0.15 1.26 1.41 (0.15) (0.10) -- (0.06)
------------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Year ended
December 31,
1999............ 9.23 0.72 (0.26) 0.46 (0.70) -- --
Period from May
1, to
December 31,
1998 (c)........ 10.00 0.46 (0.76) (0.30) (0.46) (0.01) -- --
------------------------------------------------------------------------------------------------------------------------------
Global Bond
Year ended
December 31,
1999............ 10.60 0.48 (0.70) (0.22) (0.56) -- -- --
1998............ 10.24 0.54 0.38 0.92 (0.29) (0.09) -- (0.18)
1997............ 10.16 0.59 0.30 0.89 (0.61) (0.15) -- (0.05)
Period from May
1, to
December 31,
1996 (c)........ 10.00 0.38 0.28 0.66 (0.38) (0.12) -- --
------------------------------------------------------------------------------------------------------------------------------
<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
Total End (000's) Investment (000's) Average Average Turnover
Distributions of Period Omitted Return(b) Omitted Net Assets Net Assets Rate
------------- --------- ----------- ---------------- ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International Op-
portunities
Year ended
December 31,
1999............ $(1.09) $15.17 5,259 34.01 % $ 79,794 1.02%(q) 0.77% 34.02%
1998............ (0.10) 12.21 5,260 15.92 % 64,250 1.16%(q) 0.89% 18.67%
1997............ (0.18) 10.63 2,882 1.95 % 30,631 1.22%(q) 0.65% 21.09%
Period from May
1, to
December 31,
1996 (c)........ (0.07) 10.60 1,689 6.72 %(e) 17,898 1.25%(d)(q) 0.87%(d) 5.46%(e)
------------------------------------------------------------------------------------------------------------------------------
Equity Index
Year ended
December 31,
1999............ (0.92) 20.46 22,060 21.08 % 451,296 0.00%(r) 1.42% 55.24%
1998............ (0.52) 17.70 13,139 28.45 % 232,578 0.00%(r) 1.59% 43.31%
1997............ (0.54) 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)........ (0.31) 11.10 1,320 14.23 %(e)(u) 14,650 0.00%(d)(r) 2.47%(d) 15.72%(e)
------------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Year ended
December 31,
1999............ (0.70) 8.99 2,217 5.13 % 19,921 0.80%(z) 7.94% 38.62%
Period from May
1, to
December 31,
1998 (c)........ (0.47) 9.23 1,602 (2.98)%(e) 14,789 0.90%(d)(z) 7.43%(d) 17.67%(e)
------------------------------------------------------------------------------------------------------------------------------
Global Bond
Year ended
December 31,
1999............ (0.56) 9.82 7,230 (2.16)% 70,991 0.83%(s) 4.70% 332.06%
1998............ (0.56) 10.60 6,301 9.15 % 66,791 0.95%(s) 5.27% 186.70%
1997............ (0.81) 10.24 2,797 9.05 % 28,647 1.00%(s) 5.80% 69.38%
Period from May
1, to
December 31,
1996 (c)........ (0.50) 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.
53
<PAGE>
(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 .38%, .63%, and .87% for the
years ended December 31, 1999, 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 3.44%, and 3.69% for the years
ended December 31, 1999 and 1998, respectively.
(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.
(k) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.05%, 1.12%, and 1.55%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.31%, 1.82, 1.56%, and 1.44%
for the years ended December 31, 1999, 1998, 1997, and 1996, respectively.
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.13%, 1.42%, and 2.34%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(n) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.06%, and 1.89%, for the
years ended December 31, 1997, and 1996, respectively.
(o) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.14%, and 2.15%, for the
years ended December 31, 1997, and 1996, respectively.
(p) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .96%, 1.08%, 1.30%, and 2.06%,
for the years ended December 31, 1999, 1998, 1997 and 1996, respectively.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.15%, 1.46%, 1.57%, and
2.76%, for the years ended December 31, 1999, 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 .22%, .34%, .65%, and 1.61%,
for the years ended December 31, 1999, 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 0.84%, 1.02%, 1.32%, and
1.57%, for the years ended December 31, 1999, 1998, 1997, and 1996,
respectively.
(t) 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 79.02%.
(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 1.26%, and 2.47%, for the
years ended December 31, 1999, and 1998, respectively.
(x) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .35%, and .71%, for the years
ended December 31, 1999, and 1998, repectively.
(y) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.24%, and 4.55%, for the
years ended December 31, 1999, and 1998, respectively.
(z) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.04%, and 2.03%, for the
years ended December 31, 1999, and 1998, respectively.
(1) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.09% for the year ended
December 31, 1999.
(2) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .96% for the year ended
December 31, 1999.
(3) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.71% for the year ended
December 31, 1999.
(4) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.20% for the year ended
December 31, 1999.
(5) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.17% for the year ended
December 31, 1999.
(6) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.42% for the year ended
December 31, 1999.
(7) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.17% for the year ended
December 31, 1999.
(8) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.61% for the year ended
December 31, 1999.
(*) During 1999 the Fund entered into a new Sub-Advisory Agreement with Morgan
Stanley Dean Witter Investment Management, Inc.
54
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 4.1%
B.F. Goodrich Co. . . . . . . . . . . . . 170,700 $ 4,694
General Dynamics Corp. . . . . . . . . . 106,900 5,639
Honeywell International, Inc. . . . . . . 280,000 16,153
United Technologies Corp. . . . . . . . . 456,500 29,672
----------
56,158
Agricultural Operations - 1.3%
Monsanto Co. . . . . . . . . . . . . . . 484,500 17,260
Auto and Truck Parts - 0.4%
Lear Corp. * . . . . . . . . . . . . . . 146,600 4,691
Banks - 0.3%
Comerica, Inc. . . . . . . . . . . . . . 100,000 4,669
Brokerage and Investment Management - 0.2%
E*TRADE Group, Inc. * . . . . . . . . . . 100,000 2,613
Computer Equipment - 9.6%
Comverse Technology, Inc. * . . . . . . . 25,000 3,619
Dell Computer Corp. * . . . . . . . . . . 603,800 30,794
Hewlett-Packard Co. . . . . . . . . . . . 96,900 11,040
Intel Corp. . . . . . . . . . . . . . . . 686,200 56,483
International Business Machines Corp. . . 230,000 24,840
Network Appliance, Inc. * . . . . . . . . 67,800 5,632
----------
132,408
Computer Software and Services - 17.0%
America Online, Inc. * . . . . . . . . . 624,600 47,118
Computer Associates International, Inc. . 321,100 22,457
EMC Corp. * . . . . . . . . . . . . . . . 100,000 10,925
First Data Corp. . . . . . . . . . . . . 145,200 7,160
Microsoft Corp. . . . . . . . . . . . . . 739,300 86,314
Oracle Corp. * . . . . . . . . . . . . . 351,100 39,345
Sun Microsystems, Inc. * . . . . . . . . 138,200 10,702
Yahoo!, Inc. * . . . . . . . . . . . . . 25,700 11,120
----------
235,141
Consumer - Miscellaneous - 1.5%
Avery Dennison Corp. . . . . . . . . . . 148,500 10,822
Black & Decker Corp. . . . . . . . . . . 185,800 9,708
----------
20,530
Cosmetics and Personal Care Products - 1.0%
Avon Products, Inc. . . . . . . . . . . . 214,900 7,092
Dial Corp. . . . . . . . . . . . . . . . 284,900 6,926
----------
14,018
Diversified Operations - 7.9%
Danaher Corp. . . . . . . . . . . . . . . 124,500 6,007
General Electric Co. . . . . . . . . . . 402,000 62,209
Illinois Tool Works, Inc. . . . . . . . . 200,700 13,560
Reynolds & Reynolds Co. - Cl. A . . . . . 281,100 6,325
Textron, Inc. . . . . . . . . . . . . . . 68,800 5,276
Tyco International, Ltd. . . . . . . . . 404,800 15,737
----------
109,114
Electronic Products and Services - 12.0%
Altera Corp. * . . . . . . . . . . . . . 116,900 5,794
Analog Devices, Inc. * . . . . . . . . . 48,801 4,538
Cisco Systems, Inc. * . . . . . . . . . . 761,500 81,576
Linear Technology Corp. . . . . . . . . . 100,000 7,156
LSI Logic Corp. * . . . . . . . . . . . . 68,800 4,644
Maxim Integrated Products, Inc. * . . . . 256,000 12,080
Pitney Bowes, Inc. . . . . . . . . . . . 125,300 6,054
SCI Systems, Inc. * . . . . . . . . . . . 88,000 7,232
Teradyne, Inc. * . . . . . . . . . . . . 100,000 6,600
Texas Instruments, Inc. . . . . . . . . . 267,200 25,885
Xilinx, Inc. * . . . . . . . . . . . . . 106,000 4,820
----------
166,379
Financial Services - 2.1%
Associates First Capital Corp. - Cl. A * 96,700 2,653
Citigroup, Inc. . . . . . . . . . . . . . 473,500 26,309
----------
28,962
Food, Beverage and Tobacco - 2.2%
Anheuser-Busch Cos., Inc. . . . . . . . . 51,300 3,636
Kellogg Co. . . . . . . . . . . . . . . . 134,400 4,141
Philip Morris Cos., Inc. . . . . . . . . 254,800 5,908
Quaker Oats Co. . . . . . . . . . . . . . 178,200 11,695
UST, Inc. . . . . . . . . . . . . . . . . 189,900 4,783
----------
30,163
Health Care Products - 12.3%
Allergan, Inc. . . . . . . . . . . . . . 105,000 5,224
Amgen, Inc. * . . . . . . . . . . . . . . 127,500 7,658
Bristol-Myers Squibb Co. . . . . . . . . 311,000 19,962
Cardinal Health, Inc. . . . . . . . . . . 103,300 4,946
Eli Lilly & Co. . . . . . . . . . . . . . 106,100 7,056
Genetech, Inc. * . . . . . . . . . . . . 45,600 6,133
Johnson & Johnson . . . . . . . . . . . . 210,600 19,612
Merck & Co., Inc. . . . . . . . . . . . . 346,600 23,244
Pfizer, Inc. . . . . . . . . . . . . . . 669,300 21,710
Schering-Plough Corp. . . . . . . . . . . 660,100 27,848
Warner-Lambert Co. . . . . . . . . . . . 329,200 26,974
----------
170,367
Health Care Services - 0.1%
HEALTHSOUTH Corp. * . . . . . . . . . . . 318,400 1,711
Insurance - 2.2%
American General Corp. . . . . . . . . . 46,800 3,551
AXA Financial, Inc. . . . . . . . . . . . 264,800 8,970
Hartford Financial Services Group, Inc. . 57,300 2,715
Marsh & McLennan Cos., Inc. . . . . . . . 67,700 6,478
PartnerRe, Ltd. . . . . . . . . . . . . . 156,100 5,063
XL Capital, Ltd. - Cl. A . . . . . . . . 79,500 4,124
----------
30,901
Machinery - 0.8%
Ingersoll-Rand Co. . . . . . . . . . . . 200,000 11,012
Media - Publishing - 1.2%
AT&T Corp. - Liberty Media Group - Cl. A* 300,000 17,025
55
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV / Radio - 1.9%
CBS Corp. * . . . . . . . . . . . . . . . 160,000 $ 10,230
Time Warner, Inc. . . . . . . . . . . . . 220,900 16,001
----------
26,231
Paper and Forest Products - 0.4%
Kimberly-Clark Corp. . . . . . . . . . . 75,000 4,894
Personal and Commercial Lending - 0.5%
MBNA Corp. . . . . . . . . . . . . . . . 254,900 6,946
Pollution Control - 0.2%
Allied Waste Industries, Inc. * . . . . . 372,300 3,281
Retail - Department Stores - 6.7%
Dayton Hudson Corp. . . . . . . . . . . . 92,400 6,786
Gap, Inc. . . . . . . . . . . . . . . . . 100,000 4,600
Home Depot, Inc. . . . . . . . . . . . . 467,400 32,046
Limited, Inc. . . . . . . . . . . . . . . 65,000 2,815
Lowe's Cos., Inc. . . . . . . . . . . . . 98,900 5,909
Tandy Corp. . . . . . . . . . . . . . . . 186,900 9,193
TJX Cos., Inc. . . . . . . . . . . . . . 381,600 7,799
Wal-Mart Stores, Inc. . . . . . . . . . . 341,000 23,572
----------
92,720
Retail - Food - 0.5%
Brinker International, Inc. * . . . . . . 133,400 3,202
Outback Steakhouse, Inc. * . . . . . . . 159,700 4,142
----------
7,344
Shoe and Apparel Manufacturing - 0.8%
Tommy Hilfiger Corp. * . . . . . . . . . 453,700 10,577
Telecommunication Equipment - 4.7%
ADC Telecommunications, Inc. * . . . . . 69,600 5,050
Lucent Technologies, Inc. . . . . . . . . 536,500 40,137
Nokia Oyj - ADR . . . . . . . . . . . . . 23,000 4,370
Tellabs, Inc. * . . . . . . . . . . . . . 246,800 15,842
----------
65,399
Telecommunication Services - 3.2%
Clear Channel Communications, Inc. * . . 307,300 27,427
Sprint PCS (PCS Group) * . . . . . . . . 165,000 16,912
----------
44,339
Telephone - 2.9%
MCI WorldCom, Inc. *. . . . . . . . . . . 750,000 39,797
Transportation Services - 0.3%
Kansas City Southern Industries, Inc. . . 56,500 4,216
U.S. Government Agencies - 1.2%
Federal National Mortgage Assoc. . . . . 262,900 16,414
----------
TOTAL COMMON STOCK- 99.5% 1,375,280
SHORT-TERM INVESTMENTS - 0.5%
Investment in joint trading account
(Note B)
5.242% due 01/03/00 . . . . . . . . . . 6,510 6,510
-------- ----------
TOTAL INVESTMENTS- 100.0% 1,381,790
Cash and Receivables, less payables- 0.0% 683
-------- ----------
NET ASSETS- 100.0% $1,382,473
======== ==========
*Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
56
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
FUNDAMENTAL MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Commercial Services - 3.8%
True North Communications . . . . . . . . 3,000 $ 134
Young & Rubicam, Inc. . . . . . . . . . . 3,000 212
--------
346
Computer Equipment - 4.2%
Comverse Technology, Inc. * . . . . . . . 500 72
Network Appliance, Inc. * . . . . . . . . 800 66
Redback Networks, Inc. * . . . . . . . . . 1,000 178
VERITAS Software Corp. * . . . . . . . . . 500 72
--------
388
Computer Software and Services - 10.9%
Brocade Communications Systems, Inc. * . . 400 71
Citrix Systems, Inc. * . . . . . . . . . . 1,000 123
Clarent Corp. * . . . . . . . . . . . . . 700 54
i2 Technologies, Inc. * . . . . . . . . . 200 39
Legato Systems, Inc. * . . . . . . . . . . 2,000 137
Mercury Interactive Corp. * . . . . . . . 1,500 162
Micromuse, Inc. * . . . . . . . . . . . . 500 85
Portal Software, Inc. * . . . . . . . . . 1,000 103
Rational Software Corp. * . . . . . . . . 1,300 64
Research in Motion, Ltd. * . . . . . . . . 3,500 162
--------
1,000
Electric Power - 2.8%
AES Corp. * . . . . . . . . . . . . . . . 800 60
Calpine Corp. * . . . . . . . . . . . . . 3,000 192
--------
252
Electronic Products and Services - 19.4%
Applied Micro Circuits Corp. * . . . . . . 1,300 165
Electronics for Imaging, Inc. * . . . . . 2,500 145
Emulex Corp. * . . . . . . . . . . . . . . 1,000 112
Optical Coating Laboratory, Inc. . . . . . 1,300 385
PMC-Sierra, Inc. * . . . . . . . . . . . . 1,000 160
QLogic Corp. * . . . . . . . . . . . . . . 2,000 320
SDL, Inc. * . . . . . . . . . . . . . . . 1,700 371
Vitesse Semiconductor Corp. * . . . . . . 2,300 121
--------
1,779
Food, Beverage and Tobacco - 1.4%
Adolph Coors Co. - Cl. B . . . . . . . . . 2,500 131
Health Care Products - 5.0%
Affymetrix, Inc. * . . . . . . . . . . . . 1,300 221
MedImmune, Inc. * . . . . . . . . . . . . 1,000 166
MiniMed, Inc. * . . . . . . . . . . . . . 1,000 73
--------
460
Health Care Services - 4.3%
Biogen, Inc. * . . . . . . . . . . . . . . 500 42
Idec Pharmaceuticals Corp. . . . . . . . . 3,600 354
--------
396
Leisure and Recreation - 1.6%
Royal Caribbean Cruises, Ltd. . . . . . . 3,000 148
Media - TV / Radio - 9.0%
Charter Communications, Inc. - Cl. A * . . 4,600 101
Hispanic Broadcasting Corp. * . . . . . . 2,000 184
Spanish Broadcasting Systems, Inc. * . . . 4,000 161
TV Guide, Inc. - Cl. A * . . . . . . . . . 6,000 258
Univision Communications, Inc. - Cl. A * . 1,200 123
--------
827
Oil and Natural Gas Exploration and Production - 1.8%
Kinder Morgan, Inc. . . . . . . . . . . . 8,000 162
Retail - Department Stores - 10.3%
American Eagle Outfitters, Inc. * . . . . 1,200 54
Bed Bath & Beyond, Inc. * . . . . . . . . 4,000 139
BJ's Wholesale Club, Inc. . . . . . . . . 2,500 91
Circuit City Stores, Inc. . . . . . . . . 1,500 68
Kohl's Corp. . . . . . . . . . . . . . . . 500 36
Tandy Corp. . . . . . . . . . . . . . . . 3,000 147
Tiffany & Co. . . . . . . . . . . . . . . 3,000 268
Williams-Sonoma, Inc. . . . . . . . . . . 3,000 138
--------
941
Telecommunication Equipment - 18.0%
ANTEC Corp. . . . . . . . . . . . . . . . 3,500 128
CIENA Corp. * . . . . . . . . . . . . . . 2,000 115
CommScope, Inc. * . . . . . . . . . . . . 1,500 60
E-Tek Dynamics, Inc. * . . . . . . . . . . 2,700 363
Efficient Networks, Inc. * . . . . . . . . 2,000 136
Finisar Corp. * . . . . . . . . . . . . . 1,000 90
Harmonic, Inc. * . . . . . . . . . . . . . 3,400 323
JDS Uniphase Corp. * . . . . . . . . . . . 800 129
Next Level Communications, Inc. * . . . . 2,000 150
RF Micro Devices, Inc. * . . . . . . . . . 1,500 103
Scientific-Atlanta, Inc. . . . . . . . . . 1,000 55
--------
1,652
Telecommunication Services - 1.6%
Broadwing, Inc. . . . . . . . . . . . . . 4,000 148
Transportation Services - 1.4%
Expeditors International of Washington,
Inc.. . . . . . . . . . . . . . . . . . . 3,000 131
--------
TOTAL COMMON STOCK- 95.5% 8,761
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.6%
Investment in joint trading account (Note
B)
5.242% due 01/03/00 . . . . . . . . . . . $ 329 329
------ --------
TOTAL INVESTMENTS- 99.1% 9,090
Cash and receivables, less payables - 0.9% 85
------ --------
NET ASSETS- 100.0% $9,175
====== ========
* Non-income producing security.
See notes to financial statements.
57
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 3.4%
General Dynamics Corp. . . . . . . . . . . . 2,200 $ 116
Honeywell International, Inc. . . . . . . . 2,737 158
United Technologies Corp. . . . . . . . . . 2,000 130
-------
404
Agricultural Operations - 0.8%
Monsanto Co. . . . . . . . . . . . . . . . . 2,600 93
Automobile - 0.8%
Ford Motor Co. . . . . . . . . . . . . . . . 1,700 91
Banks - 2.9%
Bank of America Corp. . . . . . . . . . . . 900 45
Charter One Financial, Inc. . . . . . . . . 1,575 30
Fifth Third Bancorp . . . . . . . . . . . . 500 37
FleetBoston Financial Corp. . . . . . . . . 2,200 77
KeyCorp . . . . . . . . . . . . . . . . . . 1,700 38
Suntrust Banks, Inc. . . . . . . . . . . . . 400 27
Wells Fargo & Co. . . . . . . . . . . . . . 2,100 85
-------
339
Brokerage and Investment Management - 0.4%
Morgan Stanley, Dean Witter, Discover & Co. 300 43
Chemicals - 0.2%
Hercules, Inc. . . . . . . . . . . . . . . . 900 25
Commercial Services - 0.2%
R.R. Donnelley & Sons Co. . . . . . . . . . 800 20
Computer Equipment - 4.5%
Dell Computer Corp. * . . . . . . . . . . . 2,100 107
Hewlett-Packard Co. . . . . . . . . . . . . 400 45
Intel Corp. . . . . . . . . . . . . . . . . 2,600 214
International Business Machines Corp. . . . 1,600 173
-------
539
Computer Software and Services - 8.7%
America Online, Inc. * . . . . . . . . . . . 2,300 173
Computer Associates International, Inc. . . 1,100 77
EMC Corp. * . . . . . . . . . . . . . . . . 600 66
First Data Corp. . . . . . . . . . . . . . . 1,100 54
Microsoft Corp. . . . . . . . . . . . . . . 4,000 467
Oracle Corp. * . . . . . . . . . . . . . . . 1,000 112
Yahoo!, Inc. * . . . . . . . . . . . . . . . 200 87
-------
1,036
Consumer - Miscellaneous - 1.1%
American Greetings Corp. - Cl. A . . . . . . 800 19
Avery Dennison Corp. . . . . . . . . . . . . 800 58
Black & Decker Corp. . . . . . . . . . . . . 1,000 52
-------
129
Cosmetics and Personal Care Products - 0.7%
Avon Products, Inc. . . . . . . . . . . . . 1,300 43
Dial Corp. . . . . . . . . . . . . . . . . . 1,600 39
-------
82
Diversified Operations - 4.8%
General Electric Co. . . . . . . . . . . . . 1,800 279
Illinois Tool Works, Inc. . . . . . . . . . 1,208 82
Textron, Inc. . . . . . . . . . . . . . . . 1,400 107
Tyco International, Ltd. . . . . . . . . . . 2,600 101
-------
569
Electric Power - 2.7%
Ameren Corp. . . . . . . . . . . . . . . . . 800 26
Constellation Energy Group . . . . . . . . . 700 20
Edison International . . . . . . . . . . . . 5,200 136
Peco Energy Co. . . . . . . . . . . . . . . 900 31
Reliant Energy, Inc. . . . . . . . . . . . . 2,000 46
Southern Co. . . . . . . . . . . . . . . . . 2,500 59
-------
318
Electronic Products and Services - 6.0%
Altera Corp. * . . . . . . . . . . . . . . . 500 25
Cisco Systems, Inc. * . . . . . . . . . . . 3,000 321
Linear Technology Corp. . . . . . . . . . . 300 21
LSI Logic Corp. * . . . . . . . . . . . . . 300 20
Maxim Integrated Products, Inc. * . . . . . 1,400 66
Pitney Bowes, Inc. . . . . . . . . . . . . . 1,200 58
SCI Systems, Inc. * . . . . . . . . . . . . 500 41
Texas Instruments, Inc. . . . . . . . . . . 1,000 97
Xilinx, Inc. * . . . . . . . . . . . . . . . 1,400 64
-------
713
Financial Services - 2.8%
Associates First Capital Corp. - Cl. A * . . 1,400 38
Citigroup, Inc. . . . . . . . . . . . . . . 4,900 272
Mellon Financial Corp. . . . . . . . . . . . 600 21
-------
331
Food, Beverage and Tobacco - 1.6%
Anheuser-Busch Cos., Inc. . . . . . . . . . 900 64
Kellogg Co. . . . . . . . . . . . . . . . . 900 28
Philip Morris Cos., Inc. . . . . . . . . . . 1,800 42
Quaker Oats Co. . . . . . . . . . . . . . . 300 19
Sysco Corp. . . . . . . . . . . . . . . . . 1,000 39
-------
192
Health Care Products - 7.1%
Allergan, Inc. . . . . . . . . . . . . . . . 800 40
American Home Products Corp. * . . . . . . . 1,100 43
Baxter International, Inc. . . . . . . . . . 1,000 63
Bristol-Myers Squibb Co. . . . . . . . . . . 2,400 154
Eli Lilly & Co. . . . . . . . . . . . . . . 400 27
Genetech, Inc. * . . . . . . . . . . . . . . 200 27
Johnson & Johnson . . . . . . . . . . . . . 1,000 93
Merck & Co., Inc. . . . . . . . . . . . . . 1,000 67
Pfizer, Inc. . . . . . . . . . . . . . . . . 2,000 65
Schering-Plough Corp. . . . . . . . . . . . 3,300 139
Warner-Lambert Co. . . . . . . . . . . . . . 1,600 131
-------
849
58
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Household Appliances / Furnishings - 0.2%
Leggett & Platt, Inc. . . . . . . . . . . . 1,000 $ 21
Insurance - 3.8%
American General Corp. . . . . . . . . . . . 1,900 144
AXA Financial, Inc. . . . . . . . . . . . . 3,400 115
Hartford Financial Services Group, Inc. . . 700 33
Lincoln National Corp. . . . . . . . . . . . 1,700 68
XL Capital, Ltd. - Cl. A . . . . . . . . . . 1,800 94
-------
454
Machinery - 0.7%
Ingersoll-Rand Co. . . . . . . . . . . . . . 1,500 83
Media - TV / Radio - 1.7%
CBS Corp. * . . . . . . . . . . . . . . . . 1,100 70
Time Warner, Inc. . . . . . . . . . . . . . 1,900 138
-------
208
Oil - 1.8%
Atlantic Richfield Co. (ARCO) . . . . . . . 1,400 121
Royal Dutch Petroleum Co. - NY Shares . . . 1,600 97
-------
218
Oil - Equipment and Services - 0.9%
Exxon Mobil Corp. . . . . . . . . . . . . . 1,300 105
Oil and Natural Gas Exploration and Production - 0.9%
Chevron Corp. . . . . . . . . . . . . . . . 600 52
Kerr-McGee Corp. . . . . . . . . . . . . . . 500 31
USX-Marathon Group . . . . . . . . . . . . . 1,200 30
-------
113
Paper and Forest Products - 1.5%
Boise Cascade Corp. . . . . . . . . . . . . 600 24
Champion International Corp. . . . . . . . . 400 25
Georgia-Pacific Corp. . . . . . . . . . . . 600 30
International Paper Co. . . . . . . . . . . 200 11
Kimberly-Clark Corp. . . . . . . . . . . . . 1,100 72
Willamette Industries, Inc. . . . . . . . . 400 19
-------
181
Personal and Commercial Lending - 0.7%
Household International, Inc. . . . . . . . 900 34
MBNA Corp. . . . . . . . . . . . . . . . . . 1,800 49
-------
83
Retail - Department Stores - 4.9%
Dayton Hudson Corp. . . . . . . . . . . . . 800 59
Gap, Inc. . . . . . . . . . . . . . . . . . 1,300 60
Home Depot, Inc. . . . . . . . . . . . . . . 2,250 154
Limited, Inc. . . . . . . . . . . . . . . . 1,000 43
Lowe's Cos., Inc. . . . . . . . . . . . . . 700 42
Tandy Corp. . . . . . . . . . . . . . . . . 500 25
TJX Cos., Inc. . . . . . . . . . . . . . . . 2,500 51
Wal-Mart Stores, Inc. . . . . . . . . . . . 2,200 152
-------
586
Retail - Food - 0.3%
Brinker International, Inc. * . . . . . . . 1,500 36
Telecommunication Equipment - 1.9%
Lucent Technologies, Inc. . . . . . . . . . 2,000 150
Nokia Oyj - ADR . . . . . . . . . . . . . . 100 19
Tellabs, Inc. * . . . . . . . . . . . . . . 800 51
-------
220
Telecommunication Services - 1.1%
Clear Channel Communications, Inc. * . . . . 1,200 107
Sprint PCS (PCS Group) * . . . . . . . . . . 200 21
-------
128
Telephone - 4.2%
AT&T Corp. . . . . . . . . . . . . . . . . . 1,900 96
Bell Atlantic Corp. . . . . . . . . . . . . 400 25
BellSouth Corp. . . . . . . . . . . . . . . 2,000 93
GTE Corp. . . . . . . . . . . . . . . . . . 400 28
MCI WorldCom, Inc. * . . . . . . . . . . . . 3,750 199
SBC Communications, Inc. . . . . . . . . . . 526 26
Sprint Corp. . . . . . . . . . . . . . . . . 400 27
-------
494
Transportation Services - 1.0%
Kansas City Southern Industries, Inc. . . . 400 30
Northwest Airlines Corp. * . . . . . . . . . 1,500 33
Union Pacific Corp. . . . . . . . . . . . . 1,400 61
-------
124
U.S. Government Agencies - 0.5%
Federal National Mortgage Assoc. . . . . . . 1,000 62
-------
TOTAL COMMON STOCK- 74.8% 8,889
Par
Value
(000's)
PUBLICLY-TRADED BONDS
Banks - 1.3%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 . . . . . . . . . . . . $ 50 48
Capital One Bank - Notes
7.08% due 10/30/01 . . . . . . . . . . . . . 50 50
Korea Development Bank - Bonds
7.125% due 09/17/01 . . . . . . . . . . . . 50 50
-------
148
Brokerage and Investment Management - 0.6%
Goldman Sachs Group, Inc. - Notes
7.35% due 10/01/09 . . . . . . . . . . . . . 25 24
Lehman Brothers Holdings, Inc. - Notes
6.5% due 10/01/02 . . . . . . . . . . . . . 50 49
-------
73
Computer Equipment - 0.2%
International Business Machines Corp. - Notes
5.625% due 04/12/04 . . . . . . . . . . . . 30 28
59
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Diversified Operations - 0.3%
El Paso Energy Corp. - Sr. Notes
6.625% due 07/15/01 . . . . . . . . . . . . $ 30 $ 30
Financial Services - 1.4%
Citigroup, Inc. - Notes
6.875% due 02/15/98 . . . . . . . . . . . . 50 42
Finova Capital Corp. - Notes
5.875% due 10/15/01 . . . . . . . . . . . . 50 49
GATX Capital Corp. - Notes
7.75% due 12/01/06 . . . . . . . . . . . . . 30 30
PNC Funding Corp.
7.0% due 09/01/04 . . . . . . . . . . . . . 50 49
-------
170
Media - Publishing - 0.2%
News America, Inc.
7.625% due 11/30/28 . . . . . . . . . . . . 30 28
Media - TV / Radio - 0.4%
Cox Communications, Inc. - Debs.
6.8% due 08/01/28 . . . . . . . . . . . . . 50 43
Natural Gas Distribution - 0.3%
Enron Corp. - Debs.
9.125% due 04/01/03 . . . . . . . . . . . . 30 31
Oil - Equipment and Services - 0.2%
Petroleum Geo-Services ASA - Sr. Notes
7.125% due 03/30/28 . . . . . . . . . . . . 30 26
Oil and Natural Gas Exploration and Production - 0.2%
Amerada Hess Corp. - Bonds
7.875% due 10/01/29 . . . . . . . . . . . . 30 29
Paper and Forest Products - 0.4%
Georgia-Pacific Corp. - Bonds
7.75% due 11/15/29 . . . . . . . . . . . . . 50 48
Retail - Food - 0.6%
Safeway, Inc. - Notes
5.875% due 11/15/01 . . . . . . . . . . . . 50 49
The Kroger Co. - Sr. Notes
8.0% due 09/15/29 . . . . . . . . . . . . . 20 19
-------
68
Telephone - 0.9%
AT&T Corp. - Notes
6.5% due 03/15/29 . . . . . . . . . . . . . 80 69
MCI Worldcom, Inc. - Sr. Notes
6.95% due 08/15/28 . . . . . . . . . . . . . 20 18
Sprint Capital Corp.
6.875% due 11/15/28 . . . . . . . . . . . . 20 18
-------
105
Transportation Services - 0.3%
Delta Air Lines, Inc. - Deb. 144A (a)
8.3% due 12/15/29 . . . . . . . . . . . . . 40 39
U.S. Government Agencies - 9.7%
Federal National Mortgage Assoc.
6.0% due 01/31/15 . . . . . . . . . . . . . 345 327
7.0% due 01/31/30 . . . . . . . . . . . . . 310 300
7.5% due 01/31/30 . . . . . . . . . . . . . 279 276
Government National Mortgage Assoc.
6.0% due 01/31/30 . . . . . . . . . . . . . 30 30
7.0% due 01/31/30 . . . . . . . . . . . . . 230 222
-------
1,155
U.S. Governmental - 6.0%
U.S. Treasury - Bonds
5.25% due 02/15/29 . . . . . . . . . . . . . 185 153
6.25% due 10/31/01 . . . . . . . . . . . . . 345 345
6.25% due 08/31/02 . . . . . . . . . . . . . 210 210
-------
708
-------
TOTAL PUBLICLY-TRADED BONDS- 23.0% 2,729
SHORT-TERM INVESTMENTS - 10.7%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . 1,268 1,268
------- -------
TOTAL INVESTMENTS- 108.5% 12,886
Payables, less cash and receivables- (8.5 )% (1,003)
------- -------
NET ASSETS- 100.0% $11,883
======= =======
* Non-income producing security.
ADR - American Depository Receipt
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1999, securities aggregated $39 or
0.33% of net assets of portfolio.
See notes to financial statements.
60
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.5%
Jet Equipment Trust
10.91% due 08/15/14 . . . . . . . . . . $ 2,100 $ 2,315
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 . . . . . . . . . . . 2,195 2,195
--------
4,510
Agricultural Operations - 0.3%
Marlin Water Trust - Sr. Notes 144A (a)
7.09% due 12/15/01 . . . . . . . . . . . 2,553 2,506
Automobile - 0.4%
Ford Motor Co. - Debs.
9.0% due 09/15/01 . . . . . . . . . . . 2,000 2,066
United Rentals, Inc.
9.0% due 04/01/09 . . . . . . . . . . . 1,715 1,612
--------
3,678
Banks - 2.7%
Abbey National First Capital - Sr.
Sub. Notes
8.2% due 10/15/04 . . . . . . . . . . . 4,000 4,098
BankBoston Corp. - Sub. Notes
6.625% due 12/01/05 . . . . . . . . . . 2,385 2,277
First Union National Bank - Sub. Notes
6.5% due 12/01/28 . . . . . . . . . . . 2,755 2,282
International Bank of Reconstruction &
Development - Debs.
8.25% due 09/01/16 . . . . . . . . . . . 2,150 2,350
National Westminister Bank, NY - Sub.
Notes
9.45% due 05/01/01 . . . . . . . . . . . 5,000 5,172
NB Capital Trust IV
8.25% due 04/15/27 . . . . . . . . . . . 1,680 1,628
RBSG Capital Corp. - Notes
10.125% due 03/01/04 . . . . . . . . . . 5,000 5,455
--------
23,262
Brokerage and Investment Management - 1.0%
Goldman Sachs Group, Inc. - Notes
7.35% due 10/01/09 . . . . . . . . . . . 3,430 3,351
Morgan Stanley Group, Inc. - Notes
8.875% due 10/15/01 . . . . . . . . . . 3,000 3,092
Salomon Brothers Mortgage Securities VII
6.75% due 07/25/24 . . . . . . . . . . . 1,890 1,867
--------
8,310
Chemicals - 0.6%
Akzo Nobel, Inc. - Bonds 144A (a)
6.0% due 11/15/03 . . . . . . . . . . . 1,630 1,554
E.I. du Pont de Nemours & Co. - Notes
6.875% due 10/15/09 . . . . . . . . . . 1,940 1,876
Equistar Chemical - Notes
8.5% due 02/15/04 . . . . . . . . . . . 145 144
Lyondell Chemical Co. - Sec. Notes
Ser. A
9.625% due 05/01/07 . . . . . . . . . . 1,350 1,384
--------
4,958
Computer Software and Services - 0.4%
PSINET, Inc. - Sr. Notes
11.0% due 08/01/09 . . . . . . . . . . . 740 758
11.5% due 11/01/08 . . . . . . . . . . . 1,795 1,876
Verio, Inc. - Sr. Notes
10.375% due 04/01/05 . . . . . . . . . . 575 581
--------
3,215
Construction - 0.2%
Orange plc - Sr. Notes
8.0% due 08/01/08 . . . . . . . . . . . 1,920 1,930
Containers - 0.1%
Packaging Corp. of America
9.625% due 04/01/09 . . . . . . . . . . 1,030 1,056
Cosmetics and Personal Care Products - 0.4%
Proctor & Gamble Co.
6.875% due 09/15/09 . . . . . . . . . . 3,655 3,574
Diversified Operations - 0.4%
CMS Panhandle Holding - Sr. Notes
7.0% due 07/15/29 . . . . . . . . . . . 1,695 1,472
Harrahs Operating Co., Inc.
7.5% due 01/15/09 . . . . . . . . . . . 2,420 2,259
--------
3,731
Electric Power - 7.4%
AES Corp. - Sr. Sub. Notes
10.25% due 07/15/06 . . . . . . . . . . 3,113 3,160
AES Eastern Energy LP - 144A (a)
9.0% due 01/02/17 . . . . . . . . . . . 2,130 2,006
Beaver Valley Funding Corp. - Debs.
9.0% due 06/01/17 . . . . . . . . . . . 2,825 2,836
BVPS II Funding Corp. - Coll. Lease
Bonds
8.89% due 06/01/17 . . . . . . . . . . . 2,464 2,482
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 . . . . . . . . . . . 2,740 2,821
Calpine Corp. - Sr. Notes
10.5% due 05/15/06 . . . . . . . . . . . 1,920 2,035
Cleveland Electric Illuminating Co. -
1st Mtge.
9.5% due 05/15/05 . . . . . . . . . . . 5,775 5,936
CMS Energy Corp. - Sr. Notes
6.75% due 01/15/04 . . . . . . . . . . . 2,040 1,892
8.125% due 05/15/02 . . . . . . . . . . 2,650 2,628
Connecticut Light & Power Co.
7.75% due 06/01/02 . . . . . . . . . . . 1,090 1,092
Connecticut Light & Power Co. -
Notes 144A (a)
8.59% due 06/04/03 . . . . . . . . . . . 1,310 1,271
East Coast Power LLC - Sec. Notes
144A (a)
7.066% due 03/31/12 . . . . . . . . . . 2,715 2,440
Long Island Lighting Co. - Debs.
8.2% due 03/15/23 . . . . . . . . . . . 3,235 3,162
Midland Cogeneration Venture - Debs.
10.33% due 07/23/02 . . . . . . . . . . 2,998 3,118
61
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Electric Power - Continued
Monterrey Power SA de CV -
Sec. Bonds 144A (a)
9.625% due 11/15/09 . . . . . . . . . . $ 720 $ 655
Niagara Mohawk Power Corp. - Debs.
8.77% due 01/01/18 . . . . . . . . . . . 3,965 4,142
North Atlantic Energy Corp. - 1st Mtge.
9.05% due 06/01/02 . . . . . . . . . . . 1,868 1,897
PNPP II Funding Corp. - Debs.
9.12% due 05/30/16 . . . . . . . . . . . 2,235 2,330
Quest Diagnostic, Inc.
10.75% due 12/15/06 . . . . . . . . . . 1,847 1,939
System Energy Resources, Inc. -
1st Mtge.
7.71% due 08/01/01 . . . . . . . . . . . 2,590 2,600
Texas New Mexico Power Co. - 1st Mtge.
9.25% due 09/15/00 . . . . . . . . . . . 8,000 8,096
Waterford 3 Funding - Entergy - Bonds
8.09% due 01/02/17 . . . . . . . . . . . 4,840 4,620
--------
63,158
Financial Services - 3.5%
Bank of New York Institution Capital -
144A (a)
7.78% due 12/01/26 . . . . . . . . . . . 3,350 3,069
Barclays North America Capital Corp. -
Debs.
9.75% due 05/15/21 . . . . . . . . . . . 4,650 4,992
Chrysler Financial Co. LLC
5.69% due 11/15/01 . . . . . . . . . . . 2,610 2,562
CIT Group, Inc. - Notes
5.5% due 10/15/01 . . . . . . . . . . . 3,160 3,076
Citibank Credit Card Master Trust I - Ser.
1997-7 A
6.35% due 08/15/02 . . . . . . . . . . . 2,360 2,356
Fairfax Financial Holdings, Ltd. - Notes
8.3% due 04/15/26 . . . . . . . . . . . 2,200 1,854
Finova Capital Corp. - Notes
6.25% due 11/01/02 . . . . . . . . . . . 2,375 2,307
Green Tree Financial Corp.
8.3% due 06/15/26 . . . . . . . . . . . 2,170 2,238
Peco Energy Transition Trust
6.05% due 03/01/09 . . . . . . . . . . . 2,600 2,428
Sun Canada Financial Co. - Bonds 144A (a)
6.625% due 12/15/07 . . . . . . . . . . 3,345 3,126
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 06/30/06 . . . . . . . . . . 1,840 1,857
--------
29,865
Food, Beverage and Tobacco - 0.5%
Canandaigua Brands, Inc. - Sr. Sub. Notes
8.75% due 12/15/03 . . . . . . . . . . . 2,365 2,353
Seagram (Joseph) E & Sons, Inc. - Debs
8.875% due 09/15/11 . . . . . . . . . . 1,830 1,941
--------
4,294
Foreign Governmental - 2.2%
Hydro-Quebec - Debs. Ser. IF
7.375% due 02/01/03 . . . . . . . . . . 1,000 1,006
Hydro-Quebec - Debs.
9.4% due 02/01/21 . . . . . . . . . . . 610 705
Hydro-Quebec - Debs. Ser. FU
11.75% due 02/01/12 . . . . . . . . . . 5,000 6,559
Nova Scotia
8.75% due 04/01/22 . . . . . . . . . . . 3,000 3,320
Province of Manitoba
9.0% due 12/15/00 . . . . . . . . . . . 3,000 3,065
9.25% due 04/01/20 . . . . . . . . . . . 2,000 2,355
Province of Saskatchewan
9.375% due 12/15/20 . . . . . . . . . . 1,500 1,758
--------
18,768
Health Care Products - 0.2%
Fresenius Medical Capital Trust II
7.875% due 02/01/08 . . . . . . . . . . 1,740 1,618
Health Care Services - 0.5%
Dynacare, Inc. - Sr. Notes
10.75% due 01/15/06 . . . . . . . . . . 2,855 2,783
Iasis Healthcare Corp. -
Sr. Sub. Notes 144A (a)
13.0% due 10/15/09 . . . . . . . . . . . 1,225 1,262
--------
4,045
Insurance - 1.8%
Conseco, Inc. - Notes
9.0% due 10/15/06 . . . . . . . . . . . 2,405 2,469
Equitable Life Assurance Society USA -
Notes 144A (a)
6.95% due 12/01/05 . . . . . . . . . . . 2,750 2,667
Liberty Mutual Insurance Co. - Notes
144A (a)
7.875% due 10/15/26 . . . . . . . . . . 850 778
Mass. Mutual Life Insurance Co. - Notes
144A (a)
7.625% due 11/15/23 . . . . . . . . . . 4,090 3,922
New York Life Insurance Co. - Sr. Notes
144A (a)
7.5% due 12/15/23 . . . . . . . . . . . 5,970 5,339
--------
15,175
Leisure and Recreation - 0.5%
SFX Entertainment, Inc.
9.125% due 12/01/08 . . . . . . . . . . 2,570 2,442
Trump Holdings & Funding - Sr. Notes
15.5% due 06/15/05 . . . . . . . . . . . 2,325 2,168
--------
4,610
Media - Publishing - 0.1%
Garden State Newspapers, Inc. - Sr. Sub.
Notes
8.75% due 10/01/09 . . . . . . . . . . . 1,277 1,200
62
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Media - TV / Radio - 2.4%
Adelphia Communications Corp. -
Sr. Notes
8.125% due 07/15/03 . . . . . . . . . . $ 1,270 $ 1,216
9.25% due 10/01/02 . . . . . . . . . . . 2,460 2,454
Charter Communications Holdings, LLC -
Sr. Notes
8.625% due 04/01/09 . . . . . . . . . . 1,340 1,240
Continental Cablevision - Sr. Notes
8.3% due 05/15/06 . . . . . . . . . . . 2,165 2,227
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 . . . . . . . . . . 1,770 1,783
Liberty Media Group - Notes 144A (a)
8.5% due 07/15/29 . . . . . . . . . . . 2,295 2,324
News America Holdings, Inc. - Debs.
8.25% due 08/10/18 . . . . . . . . . . . 2,196 2,201
Rogers Cablesystems - Sr. Notes
10.0% due 03/15/05 . . . . . . . . . . . 1,205 1,289
TCI Communications, Inc. - Debs.
7.875% due 02/15/26 . . . . . . . . . . 2,745 2,753
Time Warner, Inc. - Debs.
9.125% due 01/15/13 . . . . . . . . . . 2,863 3,141
--------
20,628
Metal Product and Fabrication - 0.2%
Yanacocha Receivables - Pass thru Certs.
144A (a)
8.4% due 06/15/04 . . . . . . . . . . . 1,654 1,524
Metals and Mining - 0.2%
Golden Northwest Aluminum
12.0% due 12/15/06 . . . . . . . . . . . 1,420 1,491
Municipals - 1.3%
Massachusetts Bay Transportation
Authority - Gen. Transn. Sys. -
Ser. B-MBIA IBC
5.0% due 03/01/28 . . . . . . . . . . . 3,085 2,666
Massachusetts State Water Authority
5.0% due 08/01/24 . . . . . . . . . . . 2,640 2,222
New Hampshire State - Taxable Pease Dev.
Auth.
7.7% due 07/01/12 . . . . . . . . . . . 3,000 3,129
New York State Dorm Authority
5.0% due 02/15/23 . . . . . . . . . . . 3,000 2,622
--------
10,639
Oil - Equipment and Services - 0.4%
Humpuss Funding Corp. - 144A (a)
7.72% due 12/15/09 . . . . . . . . . . . 1,116 810
Petroleum-Geo Services ASA - Sr. Notes
6.625% due 03/30/08 . . . . . . . . . . 2,410 2,208
--------
3,018
Oil and Natural Gas Exploration and
Production - 1.2%
Amerada Hess Corp. - Bonds
7.875% due 10/01/29 . . . . . . . . . . 2,735 2,674
Apache Finance of Canada
7.75% due 12/15/29 . . . . . . . . . . . 1,840 1,769
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 09/15/09 . . . . . . . . . . 3,000 3,365
Ocean Energy, Inc.
8.875% due 07/15/07 . . . . . . . . . . 1,155 1,146
Snyder Oil Corp.
8.75% due 06/15/07 . . . . . . . . . . . 805 807
Triton Energy Corp., Ltd. - Sr. Notes
8.75% due 04/15/02 . . . . . . . . . . . 450 451
--------
10,212
Paper and Forest Products - 0.8%
Abitibi-Consolidated, Inc. - Debs.
8.5% due 08/01/29 . . . . . . . . . . . 1,840 1,774
Fort James Corp. - Sr. Notes
6.5% due 09/15/02 . . . . . . . . . . . 2,120 2,079
S.D. Warren Co. - Sr. Sub. Notes
12.0% due 12/15/04 . . . . . . . . . . . 2,640 2,762
--------
6,615
Personal and Commercial Lending - 6.0%
Commercial Mortgage Acceptance Corp. -
Ser. 1991-C1 A1
6.79% due 08/15/08 . . . . . . . . . . . 3,501 3,422
CS First Boston Mortgage Securities
Corp. - Ser. 1998-C1 A1A
6.26% due 04/11/30 . . . . . . . . . . . 2,815 2,714
Deutsche Mortgage & Asset Receiving Corp.
- Ser. 1998-C1
6.861% due 03/15/08 . . . . . . . . . . 2,170 2,008
EQCC Home Equity Loan Trust
6.57% due 02/15/29 . . . . . . . . . . . 2,120 2,022
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 . . . . . . . . . . 3,185 3,089
7.375% due 10/28/09 . . . . . . . . . . 3,435 3,391
General Motors Acceptance Corp. - Notes
6.375% due 12/01/01 . . . . . . . . . . 3,165 3,134
GMAC Commercial Mortgage Securities,
Inc.
6.566% due 11/15/07 . . . . . . . . . . 3,385 3,186
GMAC Commercial Mortgage Securities,
Inc. - Ser. 1997-C1 A2
6.853% due 09/15/06 . . . . . . . . . . 7,325 7,158
Household Finance Corp. - Notes
5.875% due 11/01/02 . . . . . . . . . . 3,955 3,807
Midland Funding Corp. II - Debs.
11.75% due 07/23/05 . . . . . . . . . . 1,150 1,265
Money Store Home Equity Trust - Ser. 1997-
C1 DAF7
6.485% due 12/15/28 . . . . . . . . . . 4,060 3,906
Residential Accredit Loans, Inc. - Ser. 1997-
QS4 A3
7.25% due 05/25/27 . . . . . . . . . . . 62 62
63
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Personal and Commercial Lending -
Continued
UCFC Home Equity Loan - Ser. 1996-A1 A5
6.5% due 04/15/16 . . . . . . . . . . . $ 3,522 $ 3,512
UCFC Home Equity Loan
7.18% due 02/15/25 . . . . . . . . . . . 1,115 1,109
UCFC Home Equity Loan - Ser. 1997-A1 A8
7.22% due 06/15/28 . . . . . . . . . . . 6,910 6,875
--------
50,660
Real Estate Investment Trust - 2.3%
American Health Properties, Inc. - Notes
7.5% due 01/15/07 . . . . . . . . . . . 1,350 1,218
Amresco Residential Securities -
Mtge. Loan
6.51% due 08/25/27 . . . . . . . . . . . 7,885 7,581
Cabot Industrial Properties LP - Notes
7.125% due 05/01/04 . . . . . . . . . . 1,975 1,897
Camden Property Trust - Sr. Notes
7.0% due 04/15/04 . . . . . . . . . . . 2,170 2,089
IMC Home Equity Loan Trust - Ser. 1998-
1 A4
6.6% due 03/20/25 . . . . . . . . . . . 3,280 3,206
Liberty Property LP - Notes
6.6% due 06/05/02 . . . . . . . . . . . 1,675 1,615
TriNet Corp. Realty Trust, Inc. - Notes
7.3% due 05/15/01 . . . . . . . . . . . 2,070 1,982
--------
19,588
Real Estate Operations - 0.2%
HMH Properties, Inc. - Ser. A
7.875% due 08/01/05 . . . . . . . . . . 1,400 1,299
Retail - Department Stores - 0.6%
Dillard's, Inc. - Notes
7.13% due 08/01/18 . . . . . . . . . . . 2,185 1,880
Fred Meyer, Inc. (US)
7.45% due 03/01/08 . . . . . . . . . . . 2,705 2,635
K-Mart Corp. - Notes
8.375% due 12/01/04 . . . . . . . . . . 895 885
--------
5,400
Retail - Food - 0.4%
Pathmark Stores, Inc. - Sub. Notes
11.625% due 06/15/02 . . . . . . . . . . 2,585 853
Safeway, Inc. - Notes
5.875% due 11/15/01 . . . . . . . . . . 1,430 1,399
The Great Atlantic & Pacific Tea Co.,
Inc. - Notes
7.75% due 04/15/07 . . . . . . . . . . . 1,510 1,392
--------
3,644
Telecommunication Equipment - 0.2%
Axia, Inc.
10.75% due 07/15/08 . . . . . . . . . . 915 839
Crown Castle International Corp. -
Sr. Notes
9.0% due 05/15/11 . . . . . . . . . . . 645 629
--------
1,468
Telecommunication Services - 2.6%
Clearnet Communications, Inc. - Sr. Disc.
Notes
0.0% due 12/15/05 . . . . . . . . . . . 900 887
CSC Holdings, Inc. - Sr. Notes
8.125% due 07/15/09 . . . . . . . . . . 2,645 2,633
Falcon Holding Group L.P. - Debs. Ser. B
8.375% due 04/15/10 . . . . . . . . . . 1,060 1,049
Global Crossing Holdings, Ltd. -
Sr. Notes
144A (a)
9.125% due 11/15/06 . . . . . . . . . . 945 934
9.5% due 11/15/09 . . . . . . . . . . . 2,275 2,249
Level 3 Communications, Inc. - Sr. Notes
9.125% due 05/01/08 . . . . . . . . . . 1,345 1,273
McLeodUSA, Inc. - Sr. Notes
9.5% due 11/01/08 . . . . . . . . . . . 1,920 1,934
Nextel Communications, Inc. - Sr. Notes
144A (a)
9.375% due 11/15/09 . . . . . . . . . . 1,915 1,882
Nextel Communications, Inc. - Sr. Disc.
Notes
9.95% due 02/15/08 . . . . . . . . . . . 1,895 1,346
NTL Communications Corp. - Sr. Notes
11.5% due 10/01/08 . . . . . . . . . . . 2,560 2,778
Omnipoint Corp. - Sr. Notes 144A (a)
11.5% due 09/15/09 . . . . . . . . . . . 1,540 1,663
Telecorp PCS, Inc.
11.625% due 04/15/09 . . . . . . . . . . 1,715 1,080
Tritel PCS, Inc. - Sr. Disc. Notes
144A (a)
12.75% due 05/15/09 . . . . . . . . . . 755 476
Triton PCS, Inc.
11.0% due 05/01/08 . . . . . . . . . . . 1,435 1,019
United Pan-Europe Communications NV
11.25% due 11/01/09 . . . . . . . . . . 1,060 1,102
--------
22,305
Telephone - 3.0%
Comcast Cable Communications - Notes
6.2% due 11/15/08 . . . . . . . . . . . 1,685 1,527
GTE Corp. - Debs.
8.75% due 11/01/21 . . . . . . . . . . . 3,000 3,239
GTE North, Inc. - Debs.
5.65% due 11/15/08 . . . . . . . . . . . 3,295 2,924
LCI International, Inc. - Sr. Notes
7.25% due 06/15/07 . . . . . . . . . . . 2,205 2,124
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 . . . . . . . . . . 3,595 3,556
Metromedia Fiber Network, Inc. - Sr.
Notes
10.0% due 11/15/08 . . . . . . . . . . . 2,320 2,378
MetroNet Communications Corp. -
Sr. Notes
12.0% due 08/15/07 . . . . . . . . . . . 1,770 2,069
NEXTLINK Communications, Inc. -
Sr. Notes
10.75% due 11/15/08 . . . . . . . . . . 2,270 2,338
Sprint Capital Corp.
6.9% due 05/01/19 . . . . . . . . . . . 2,760 2,517
64
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SOVEREIGN BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telephone - Continued
U.S. West Capital Funding, Inc.
6.875% due 07/15/28 . . . . . . . . . . $ 2,755 $ 2,414
--------
25,086
Transportation Services - 2.4%
America West Airlines, Inc. - Pass thru
Certs.
6.93% due 01/02/08 . . . . . . . . . . . 1,681 1,596
Continental Airlines, Inc. - Pass
thru Certs.
7.206% due 06/30/04 . . . . . . . . . . 3,042 2,981
Continental Airlines, Inc. - Notes
8.0% due 12/15/05 . . . . . . . . . . . 2,265 2,084
Delta Air Lines, Inc. - Debs. 144A (a)
8.3% due 12/15/29 . . . . . . . . . . . 1,830 1,773
Erac USA Finance Co. - Notes 144A (a)
6.625% due 02/15/05 . . . . . . . . . . 3,345 3,164
Fine Air Services, Inc.
9.875% due 06/01/08 . . . . . . . . . . 2,090 1,777
Northwest Airlines Corp.
8.375% due 03/15/04 . . . . . . . . . . 1,680 1,569
Northwest Airlines Corp. - Ser. 1996-1
8.97% due 01/02/15 . . . . . . . . . . . 218 220
NWA Trust - Sr. Notes
9.25% due 06/21/14 . . . . . . . . . . . 2,347 2,377
U.S. Air, Inc. - Pass thru Certs. Ser.
1990-A1
11.2% due 03/19/05 . . . . . . . . . . . 1,294 1,310
Wisconsin Central Transportation Corp. -
Notes
6.625% due 04/15/08 . . . . . . . . . . 1,360 1,263
--------
20,114
U.S. Government Agencies - 29.9%
Federal Home Loan Mortgage Corp.
6.0% due 06/15/11 . . . . . . . . . . . 10,000 9,441
Federal National Mortgage Assoc.
5.625% due 05/14/04 . . . . . . . . . . 4,015 3,837
6.0% due 01/31/15 . . . . . . . . . . . 10,000 9,487
6.25% due 05/15/29 . . . . . . . . . . . 11,500 10,235
6.5% due 08/15/04 . . . . . . . . . . . 8,205 8,102
6.5% due 10/01/14 . . . . . . . . . . . 9,854 9,559
6.5% due 11/01/28 . . . . . . . . . . . 11,145 10,500
6.625% due 09/15/09 . . . . . . . . . . 20,030 19,454
6.94% due 01/25/22 . . . . . . . . . . . 1,491 1,458
7.0% due 09/01/10 . . . . . . . . . . . 4,878 4,824
7.385% due 03/25/21 . . . . . . . . . . 1,189 1,190
Government National Mortgage Assoc.
6.0% due 01/15/29 . . . . . . . . . . . 9,932 9,031
6.5% due 02/15/28 . . . . . . . . . . . 4,101 3,848
6.5% due 07/15/28 . . . . . . . . . . . 15,839 14,864
6.5% due 02/15/29 . . . . . . . . . . . 4,243 3,982
6.5% due 04/15/29 . . . . . . . . . . . 8,651 8,118
6.5% due 06/15/29 . . . . . . . . . . . 28,180 26,445
6.5% due 08/15/29 . . . . . . . . . . . 7,419 6,962
7.0% due 09/15/25 . . . . . . . . . . . 2,412 2,338
7.0% due 08/15/28 . . . . . . . . . . . 7,147 6,901
7.0% due 03/15/29 . . . . . . . . . . . 9,294 8,974
7.0% due 08/15/29 . . . . . . . . . . . 3,214 3,103
7.0% due 09/15/29 . . . . . . . . . . . 32,725 31,600
7.5% due 12/15/99 . . . . . . . . . . . 28,100 27,784
7.5% due 09/15/28 . . . . . . . . . . . 20 20
8.0% due 12/15/99 . . . . . . . . . . . 6,675 6,742
8.0% due 05/15/25 . . . . . . . . . . . 347 351
8.0% due 06/15/25 . . . . . . . . . . . 341 344
8.0% due 09/15/25 . . . . . . . . . . . 720 728
8.0% due 01/15/26 . . . . . . . . . . . 322 325
8.0% due 08/15/27 . . . . . . . . . . . 1,679 1,696
8.5% due 09/15/21 . . . . . . . . . . . 668 690
9.0% due 05/15/21 . . . . . . . . . . . 485 510
9.0% due 08/15/21 . . . . . . . . . . . 564 593
9.5% due 06/15/16 . . . . . . . . . . . 375 398
--------
254,434
U.S. Governmental - 16.3%
U.S. Treasury - Bonds
7.125% due 02/15/23 #. . . . . . . . . . 33,967 35,363
8.875% due 08/15/17 . . . . . . . . . . 14,254 17,227
U.S. Treasury - Notes
5.75% due 08/15/03 . . . . . . . . . . . 22,465 22,005
7.0% due 07/15/06 . . . . . . . . . . . 9,909 10,149
7.5% due 05/15/02 . . . . . . . . . . . 20,095 20,629
7.5% due 02/15/05 . . . . . . . . . . . 24,846 25,914
8.0% due 05/15/01 . . . . . . . . . . . 7,009 7,171
--------
138,458
--------
TOTAL PUBLICLY-TRADED BONDS- 94.1% 800,046
WARRANTS - 0.0%
Telephone - 0.0%
MetroNet Communications Corp. - CW07
144A (a)
expires 08/15/07 (Cost $58) . . . . . . 2 313
SHORT-TERM INVESTMENTS - 9.6%
Investment in joint trading account
(Note B)
5.242% due 01/03/00 . . . . . . . . . . 81,840 81,840
-------- --------
TOTAL INVESTMENTS- 103.7% 882,199
Payables, less cash and receivables- (3.7)% (31,913)
-------- --------
NET ASSETS- 100.0% $850,286
======== ========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1999, securities aggregated
$49,564 or 5.83% of net assets of the Portfolio.
# Securities, or a portion thereof, with an aggregate market value of $573
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
65
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.8%
Telecom Argentina Stet-France Telecom SA
- ADR (TELS) . . . . . . . . . . . . . . 4,980 $ 170
Telefonica de Argentina SA - ADR (UTIT) . 3,075 95
--------
265
Brazil - 3.9%
Companhia Energetica de Minas Gerias -
ADR (UTIE) . . . . . . . . . . . . . . . 3,740 84
Companhia Vale do Rio Doce - ADR (META) . 1,605 45
Petroleo Brasileiro SA - ADR (OILX) . . . 3,795 97
Tele Celular Sul Participacoes SA - ADR
(TELS) . . . . . . . . . . . . . . . . . 1,898 60
Tele Centro Sul Participacoes SA - ADR
(UTIT) . . . . . . . . . . . . . . . . . 1,795 163
Tele Norte Leste Participacoes SA - ADR
(TELS) . . . . . . . . . . . . . . . . . 2,140 55
Tele Sudeste Celular Participacoes SA -
ADR (TELS) * . . . . . . . . . . . . . 2,348 91
Telecomunicacoes Brasileiras SA - ADR
(UTIT) . . . . . . . . . . . . . . . . . 940 121
Telemig Celular Participacoes SA - ADR
(TELS) . . . . . . . . . . . . . . . . . 237 11
Telesp Celular Participacoes SA - ADR
(TELS) . . . . . . . . . . . . . . . . . 5,078 215
Unibanco - Uniao de Bancos Brasileiros SA
- GDR (BANK) . . . . . . . . . . . . . . 11,086 334
--------
1,276
Cayman Islands - 0.4%
TCL International Holdings, Ltd. * (ETRN) 194,000 135
Chile - 0.2%
Empresa Nacional de Electricidad SA -
ADR (UTIE) . . . . . . . . . . . . . . . 1,560 22
Enersis SA - ADR (UTIE) . . . . . . . . . 1,310 31
--------
53
China - 0.5%
Great Wall Technology Co. * (ETRN) . . . 119,000 116
Guandong Kelon Electrical Holdings Co.,
Ltd. - H Shares (APPL) . . . . . . . . . 18,000 14
Yanzhou Coal Mining Co., Ltd. - ADR
(META) . . . . . . . . . . . . . . . . . 1,560 22
Zhenhai Refining and Chemical Co., Ltd.
(OILS) . . . . . . . . . . . . . . . . . 74,000 13
--------
165
Czech Republic - 0.4%
SPT Telecom AS (TELS) . . . . . . . . . . 5,706 92
SPT Telecom AS - GDR * (TELS) . . . . . . 1,670 27
--------
119
Egypt - 1.0%
Al-Ahram Beverages Co. S.A.E. - GDR
(FOOD) 2,425 47
Eastern Co. for Tobacco & Cigarettes
(FOOD) . . . . . . . . . . . . . . . . . 749 20
Egypt Gas Co. (OILX) . . . . . . . . . . 300 18
Egypt Mobile Phone (TELS) . . . . . . . . 5,466 251
--------
336
Greece - 1.0%
Alpha Credit Bank (BANK) . . . . . . . . 680 53
Hellenic Telecommunication Organization
SA (UTIT). . . . . . . . . . . . . . . . 3,750 89
Hellenic Telecommunications Organization
SA - ADR (UTIT) . . . . . . . . . . . . 4,016 48
National Bank of Greece SA (BANK) . . . . 775 57
National Bank of Greece SA - ADR *
(BANK) . . . . . . . . . . . . . . . . . 1,980 28
Panafon Hellenic Telecom SA (TELS) . . . 2,755 37
Panafon Hellenic Telecom SA - GDR *
(TELS) . . . . . . . . . . . . . . . . . 2,160 28
--------
340
Hong Kong - 2.0%
China Telecom (Hong Kong), Ltd. (TELS) . 56,000 349
China Telecom (Hong Kong), Ltd. - ADR
(TELS) . . . . . . . . . . . . . . . . . 1,600 206
Legend Holdings, Ltd. (COMP) . . . . . . 22,000 55
Timeless Software, Ltd. * (SOFT) . . . . 30,000 17
Yue Yuen Industrial Holdings (APPA) . . . 16,000 38
--------
665
Hungary - 0.8%
Magyar Tavkozlesi Rt. - ADR (UTIT) . . . 5,071 183
Magyar Tavkozlesi Rt. (UTIT) . . . . . . 4,400 31
OTP Bank Rt. (BANK) . . . . . . . . . . . 398 23
OTP Bank Rt. (BANK) . . . . . . . . . . . 250 14
--------
251
India - 8.6%
Associated Cement Companies, Ltd. *
(CONS) . . . . . . . . . . . . . . . . . 6,600 38
Bank of Baroda (BANK) . . . . . . . . . . 3,750 6
Bharat Heavy Electricals, Ltd. (ELEQ) . . 28,500 138
Container Corp. of India, Ltd. (TRAN) . . 20,092 113
Corporation Bank (BANK) . . . . . . . . . 5,950 15
Dabur India, Ltd. (HEAL) . . . . . . . . 1,000 27
Gujarat Ambuja Cements, Ltd. - GDR
(CONS) . . . . . . . . . . . . . . . . . 16,400 123
HCL Technologies, Ltd. * (CNSU) . . . . . 950 13
Hero Honda Motors, Ltd. * (AUTO) . . . . 8,000 208
Hindustan Lever, Ltd. (HNBA) . . . . . . 3,000 155
Housing Development Financing Corp., Ltd.
(LEND) . . . . . . . . . . . . . . . . . 7,480 49
Indo Gulf Corp., Ltd. (CHEM) . . . . . . 8,500 12
Infosys Technologies, Ltd. * (SOFT) . . . 2,320 774
Larsen & Toubro, Ltd. - GDR (DIOP) . . . 3,500 116
Lupin Laboratories, Ltd. (HEAL) . . . . . 2,750 36
NIIT, Ltd. (SOFT) . . . . . . . . . . . . 1,400 107
66
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
India - Continued
Oriental Bank of Commerce * (BANK) . . . 13,700 $ 14
Reliance Industries, Ltd. - GDR * (CHEM) 8,750 123
Satyam Computer Services, Ltd. (SOFT) . . 4,500 227
State Bank of India (BANK) . . . . . . . 11,250 58
Strides Arcolab, Ltd. (CNSU) . . . . . . 500 5
Tata Engineering and Locomotive Co.,
Ltd. - GDR (AUTO) . . . . . . . . . . . 20,000 105
Tata Tea Ltd. (FOOD) . . . . . . . . . . 4,000 48
Videsh Sanchar Nigam, Ltd. - GDR *
(TELS) . . . . . . . . . . . . . . . . . 2,000 49
Zee Telefilms Ltd. (MEDI) . . . . . . . . 9,000 226
--------
2,785
Indonesia - 1.5%
PT Gudang Garam Tbk (FOOD) . . . . . . . 51,500 139
PT Indah Kiat Pulp & Paper Corp. Tbk
(PAPR) . . . . . . . . . . . . . . . . . 90,000 35
PT Indofood Sukses Makmur Tbk (FOOD) . . 48,000 60
PT Semen Gresik (Persero) Tbk (CONS) . . 38,000 60
PT Telekomunikasi Indonesia (UTIT) . . . 189,300 108
PT Telekomunikasi Indonesia - ADR
(UTIT) . . . . . . . . . . . . . . . . . 7,910 87
--------
489
Israel - 4.9%
BATM Advanced Communications, Ltd.
(ETRN) . . . . . . . . . . . . . . . . . 1,167 96
Check Point Software Technologies, Ltd. *
(SOFT) . . . . . . . . . . . . . . . . . 980 195
ECI Telecommunications, Ltd. (MEDI) . . . 13,699 433
Galileo Technology, Ltd. * (ETRN) . . . . 1,440 35
Gilat Satellite Networks, Ltd. * (TELE) . 5,129 609
Nice Systems, Ltd. (TELE) . . . . . . . . 613 30
Nice Systems, Ltd. - ADR * (TELE) . . . . 1,340 66
Orbotech, Ltd. (ETRN) . . . . . . . . . . 1,497 116
Orckit Communications, Ltd. * (TELS) . . 807 28
--------
1,608
Malaysia - 0.8%
Public Bank Berhad (BANK) . . . . . . . . 295,000 258
Mexico - 10.5%
Alfa, SA * (DIOP) . . . . . . . . . . . . 13,500 63
Cemex SA de CV - ADR * Participation
Certificates (CONS) . . . . . . . . . . 2,770 77
Cemex SA de CV - CPO * (CONS) . . . . . . 76,710 429
Cifra SA de CV (RETS) . . . . . . . . . . 3,216 64
Cifra SA de CV - Ser. V (RETS) . . . . . 5,900 12
Fomento Economico Mexicano SA de CV
(FOOD) . . . . . . . . . . . . . . . . . 25,874 116
Fomento Economico Mexicano SA de CV -
ADR (FOOD) . . . . . . . . . . . . . . . 7,635 340
Grupo Carso SA de CV - Ser. A1 (DIOP) . . 10,600 53
Grupo Financiero Banamex Accival SA de
CV (Banacci) (FINL). . . . . . . . . . . 52,940 212
Grupo Financiero Bancomer SA de CV - ADR
ADR (FINL) . . . . . . . . . . . . . . . 2,100 18
Grupo Financiero Bancomer SA de CV - Cl.
O (FINL) . . . . . . . . . . . . . . . . 131,100 55
Grupo Televisa SA - GDR * (MEDI) . . . . 9,880 674
Kimberly-Clark de Mexico SA de CV
(PAPR) . . . . . . . . . . . . . . . . . 20,160 79
Telefonos de Mexico SA - ADR (UTIT) . . . 10,915 1,228
--------
3,420
Panama - 0.0%
Panamerican Beverages, Inc. - Cl. A
(FOOD) . . . . . . . . . . . . . . . . . 500 10
Poland - 1.0%
Elektrim Spolka Akcyjna SA (ETRN) . . . . 5,520 55
Prokom Software - GDR (SOFT) . . . . . . 1,212 18
Telekomunikacja Polska - GDR * (TELS) . . 38,038 238
Wielkopolski Bank Kredytowy SA (BANK) . . 2,309 16
--------
327
Singapore - 0.5%
Chartered Semiconductor Manufacturing *
(ETRN) . . . . . . . . . . . . . . . . . 8,000 44
NatSteel Electronics, Ltd. (ETRN) . . . . 11,000 58
Venture Manufacturing, Ltd. (ETRN) . . . 5,000 57
--------
159
South Africa - 5.3%
ABSA Group, Ltd. (BANK) . . . . . . . . . 16,844 76
Anglo American Platinum Corp., Ltd.
(PMET) . . . . . . . . . . . . . . . . . 2,662 81
B.O.E. Corp., Ltd. (FUND) . . . . . . . . 48,421 37
Bidvest Group, Ltd. (DIOP) . . . . . . . 26,225 256
Billiton plc (META) . . . . . . . . . . . 16,172 93
BOE, Ltd. (FINL) . . . . . . . . . . . . 101,263 99
Comparex Holdings, Ltd. (COMP) . . . . . 8,125 57
De Beers - ADR (PMET) . . . . . . . . . . 1,451 42
De Beers Centenary AG (UTIE) . . . . . . 9,060 264
Dimension Data Holdings, Ltd. (COMP) . . 17,082 107
Education Investment Corp., Ltd. (COMM) . 24,200 20
Ellerine Holdings, Ltd. (RETS) . . . . . 11,000 58
FirstRand, Ltd. (FINL) . . . . . . . . . 75,768 108
M-Cell, Ltd. (TELS) . . . . . . . . . . . 16,860 65
Nedcor, Ltd. (BANK) . . . . . . . . . . . 3,869 86
New Africa Investments, Ltd. - N Shares *
(FINL) . . . . . . . . . . . . . . . . . 66,000 37
Rembrandt Group, Ltd. (DIOP) . . . . . . 11,810 112
Sappi, Ltd. (READ) . . . . . . . . . . . 5,800 57
Sasol, Ltd. (OILX) . . . . . . . . . . . 9,513 80
--------
1,735
South Korea - 20.1%
Cheil Jedang Corp. (FOOD) . . . . . . . . 1,410 163
Dacom Corp. (TELS) . . . . . . . . . . . 460 237
Daewoo Securities Co. (FUND) . . . . . . 3,810 43
Daou Technology, Inc. (SOFT) . . . . . . 2,228 77
Digital Chosun Co., Ltd. * (MEDP) . . . . 150 30
Good Morning Securities Co., Ltd. *
(FUND) . . . . . . . . . . . . . . . . . 11,930 57
67
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
South Korea - Continued
Hana Bank (BANK) . . . . . . . . . . . . 4,820 $ 38
Hankuk Glass Industry Co., Ltd. (CNSU) . 1,890 36
Hanvit Bank (BANK) . . . . . . . . . . . 18,490 63
Hanvit Bank - GDR * (BANK) . . . . . . . 4,520 28
Housing & Commercial Bank, Korea
(BANK) . . . . . . . . . . . . . . . . . 2,740 87
Humax Co., Ltd. * (CNSU) . . . . . . . . 4,010 68
Hyundai Electronics Industries Co. (ETRN) 5,596 119
Hyundai Securities Co. (FINL) . . . . . . 1,950 38
Insung Information Corp. * (CNSU) . . . . 1,320 45
Kookmin Bank (BANK) . . . . . . . . . . . 8,093 127
Korea Electric Power Corp. - ADR (UTIE) . 7,250 121
Korea Technology Banking Co. (BANK) . . . 4,110 40
Korea Telecom Corp. - ADR * (TELS) . . . 8,190 612
LG Electronics (ETRN) . . . . . . . . . . 1,910 79
LG Investment & Securities Co., Ltd.
(FINL) . . . . . . . . . . . . . . . . . 2,070 35
Mirae Co. (COMP) . . . . . . . . . . . . 7,830 61
Pantech Co., Ltd. (TELE) . . . . . . . . 3,870 87
Pohang Iron & Steel Co., Ltd. (STEE) . . 970 107
Samsung Electro-Mechanics Co. (ETRN) . . 1,900 126
Samsung Electronics (ETRN) . . . . . . . 9,490 2,223
Samsung Securities Co., Ltd. (FUND) . . . 1,440 44
SEROME Technology, Inc. (SOFT) . . . . . 170 36
SK Telecom Co., Ltd. (TELS) . . . . . . . 325 1,165
SK Telecom Co., Ltd. - ADR (TELS) . . . . 8,899 341
Telson Electronics Co., Ltd. (TELE) . . . 3,800 74
Trigem Computer, Inc. (COMP) . . . . . . 1,249 139
--------
6,546
Soviet Union - 2.4%
LUKoil Holding - ADR (OILS) . . . . . . . 5,170 269
RAO Unified Energy Systems - GDR
(UTIE) . . . . . . . . . . . . . . . . . 9,500 114
Rostelecom - ADR * (TELS) . . . . . . . . 1,820 31
Surgutneftegaz - ADR (OILS) . . . . . . . 19,860 347
Vimpel-Communications - ADR * (TELS) . . 300 13
--------
774
Taiwan - 11.3%
Accton Technology Corp. - GDR * (ETRN) . 39,000 279
Acer, Inc. - GDR * (COMP) . . . . . . . . 55,800 781
Advanced Semiconductor Engineering, Inc.
* (ETRN) . . . . . . . . . . . . . . . . 2,700 52
Ase Test, Ltd. * (ETRN) . . . . . . . . . 2,000 49
Asustek Computer, Inc. - GDR (COMP) . . . 38,700 524
China Steel Corp. (STEE) . . . . . . . . 16,150 236
Evergreen Marine Corp. GDR (TRAN) . . . . 9,000 74
Far Eastern Textile, Ltd. - GDR * (APPA) 10,000 236
Hon Hai Precision Industry Co., Ltd. - GDR
* (ETRN) . . . . . . . . . . . . . . . . 8,200 155
Hon Hai Precision Industry Co., Ltd. - GDR
144A * (a) (ETRN) . . . . . . . . . . . 5,700 110
Ritek, Inc. - GDR 144A * (a) (ETRN) . . . 3,900 44
Siliconware Precision Industries Co. *
(ETRN) . . . . . . . . . . . . . . . . . 16,800 237
Synnex Technology International Corp.
(COMP) . . . . . . . . . . . . . . . . . 680 18
Taiwan Semiconductor Manufacturing Co.,
Ltd. - ADR (ETRN) . . . . . . . . . . . 19,892 895
--------
3,690
Thailand - 2.0%
Advanced Info Service Public Co., Ltd.
(TELS) . . . . . . . . . . . . . . . . . 8,400 141
BEC World Public Co., Ltd. (MEDI) . . . . 7,800 48
Delta Electronics (Thailand) Public Co.,
Ltd. (ETRN) . . . . . . . . . . . . . . . 9,300 110
Shin Corp. Public Co., Ltd. (COMP) . . . 9,300 88
Siam City Cement Public Co., Ltd. (CONS) 24,200 130
Thai Farmers Bank Public Co., Ltd. (BANK) 78,000 130
--------
647
Turkey - 7.9%
Dogan Sirketler Grubu Holding A.S.
(MEDI) . . . . . . . . . . . . . . . . . 15,782,800 466
Dogan Yayin Holding Corp. * (FUND) . . . 8,191,000 121
Ege Biracilik ve Malt Sanayi A.S. (FOOD) 1,889,000 144
Erciyas Biracilik ve Malt Sanayi A.S.
(FOOD) . . . . . . . . . . . . . . . . . 247,000 12
Eregli Demir ve Celik Fabrikalari T.A.S
(STEE) . . . . . . . . . . . . . . . . . 1,604,000 67
Haci Omer Sabanci Holding AG (FUND) . . . 3,590,000 208
Migros Turk T.A.S. (RETF) . . . . . . . . 56,091 36
Tupras-Turkiye Petrol Rafinerileri A.S.
(OILX) . . . . . . . . . . . . . . . . . 553,000 62
Turkiye Garanti Bankasi A.S. (BANK) . . . 9,965,000 151
Turkiye Is Bankasi (Isbank) - Cl. C (BANK) 5,498,000 264
Vestel Elektronik Sanayi ve Ticaret A.S.
(ETRN) . . . . . . . . . . . . . . . . . 614,123 147
Yapi ve Kredi Bankasi A.S. (BANK) . . . . 28,319,400 874
Yapi ve Kredi Bankasi A.S. - GDR *
(BANK) . . . . . . . . . . . . . . . . . 500 15
--------
2,567
United Kingdom - 0.1%
Billiton Plc (META) . . . . . . . . . . . 3,680 22
United States - 2.8%
Amdocs, Ltd. * (TELS) . . . . . . . . . . 3,663 127
Chartered Semiconductor Manufacturing,
Ltd. - ADR * (ETRN) . . . . . . . . . . 100 7
Comverse Technology, Inc. * (COMP) . . . 1,073 155
DSP Group, Inc. * (ETRN) . . . . . . . . 1,208 112
Far Eastern Textile, Ltd. - GDR 144A * (a)
(APPA) . . . . . . . . . . . . . . . . . 12,800 309
Jacada, Ltd. * (SOFT) . . . . . . . . . . 310 9
Polski Koncern Naftowy SA - GDR *
(OILS) . . . . . . . . . . . . . . . . . 4,342 53
Radware, Ltd. * (SOFT) . . . . . . . . . 480 21
Sapiens International Corp., N.V. * (SOFT) 1,660 27
Tecnomatix Technologies, Ltd. * (SOFT) . 910 26
68
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United States - Continued
TTI Team Telecom International, Ltd. *
(TELS) 1,320 $ 24
Zoran Corp. * (ETRN) . . . . . . . . . . 670 38
--------
908
--------
TOTAL COMMON STOCK- 90.7% 29,550
PREFERRED STOCK
Brazil - 4.4%
Celular CRT Participacoes * (TELS) . . . 986,200 172
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) . . . . . . . . . . . . . . 3,777,800 85
Companhia Riograndense de
Telecomunicacoes * (TELS). . . . . . . . 678,000 210
Companhia Vale do Rio Doce - Cl. A *
(META) . . . . . . . . . . . . . . . . . 9,959 276
Petroleo Brasileiro SA - Petrobras
(OILS) 950,454 242
Tele Celular Sul Participacoes SA
(TELS) 2,481,000 8
Tele Centro Sul Participacoes SA (UTIT) . 2,200,000 40
Tele Nordeste Celular Participacoes S.A.
(TELS) . . . . . . . . . . . . . . . . . 6,983,600 18
Tele Norte Leste Participacoes SA
(UTIT) 4,457,000 120
Tele Sudeste Celular Participacoes SA
(TELS) . . . . . . . . . . . . . . . . . 10,181,730 75
Telemig Celular Participacoes SA (TELS) . 13,849,850 30
Telesp Celular Participacoes SA *
(TELS) 2,297,200 41
Telesp Celular SA - Cl. B * (TELS) . . . 740,272 59
Telesp Participacoes SA * (UTIT) . . . . 2,000,000 48
--------
TOTAL PREFERRED STOCK- 4.4% 1,424
RIGHTS - 0.0%
South Korea - 0.0%
Serome Technology, Inc. (SOFT)
expires 01/26/00 (Cost $0) . . . . . . . 55 3
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 3.6%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . $ 1,191 1,191
----------- --------
TOTAL INVESTMENTS- 98.7% 32,168
Cash and Receivables, less payables- 1.3% 428
----------- --------
NET ASSETS- 100.0% $32,596
=========== ========
* Non-income producing security.
ADR - American Depository Receipt
GDR - Global Depository Receipt
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1999, securities aggregated
$463 or 1.42% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Electronic Products and Services . . ETRN $5,495 17.7%
Telecommunication Services . . . . . TELS 5,275 17.1%
Banks . . . . . . . . . . . . . . . BANK 2,855 9.2%
Telephone . . . . . . . . . . . . . UTIT 2,359 7.6%
Computer Equipment . . . . . . . . . COMP 1,985 6.4%
Media - TV / Radio . . . . . . . . . MEDI 1,847 6.0%
Computer Software and Services . . . SOFT 1,539 5.0%
Food, Beverage and Tobacco . . . . . FOOD 1,098 3.5%
Oil . . . . . . . . . . . . . . . . OILS 925 3.0%
Telecommunication Equipment . . . . TELE 866 2.8%
Construction . . . . . . . . . . . . CONS 857 2.8%
Electric Power . . . . . . . . . . . UTIE 721 2.4%
Financial Services . . . . . . . . . FINL 602 1.9%
Diversified Operations . . . . . . . DIOP 600 1.9%
Shoe and Apparel Manufacturing . . . APPA 584 1.9%
Brokerage and Investment
Management . . . . . . . . . . . . FUND 510 1.7%
Metals and Mining . . . . . . . . . META 457 1.5%
Steel . . . . . . . . . . . . . . . STEE 409 1.3%
Automobile . . . . . . . . . . . . . AUTO 313 1.0%
Oil and Natural Gas Exploration
and Production . . . . . . . . . . OILX 258 0.8%
Transportation Services . . . . . . TRAN 187 0.6%
Consumer - Miscellaneous . . . . . CNSU 166 0.5%
Cosmetics and Personal Care
Products . . . . . . . . . . . . . HNBA 155 0.5%
Electrical Equipment . . . . . . . . ELEQ 138 0.4%
Chemicals . . . . . . . . . . . . . CHEM 136 0.4%
Retail - Department Stores . . . . . RETS 134 0.4%
Precious Metals/Gems/Stones . . . . PMET 123 0.4%
Paper and Forest Products . . . . . PAPR 114 0.4%
Health Care Products . . . . . . . . HEAL 63 0.2%
Real Estate Development . . . . . . READ 57 0.2%
Personal and Commercial
Lending . . . . . . . . . . . . . LEND 49 0.2%
Retail - Food . . . . . . . . . . . RETF 36 0.1%
Media - Publishing . . . . . . . . . MEDP 30 0.1%
Commercial Services . . . . . . . . COMM 20 0.1%
Household Appliances /
Furnishings . . . . . . . . . . . APPL 14 0.0%
-------- -------
$30,977 100.0%
======== =======
69
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Argentina - 0.3%
Banco de Galicia y Buenos Aires SA de CV
- Cl. B (BANK) . . . . . . . . . . . . . 16,184 $ 80
Banco Frances SA (BANK) . . . . . . . . . 10,000 79
IRSA Inversiones y Representaciones SA
(READ) . . . . . . . . . . . . . . . . . 16,185 52
Perez Companc SA - Cl. B * (OILE) . . . . 32,000 164
Siderca S.A.I.C. (STEE) . . . . . . . . . 35,000 74
Telefonica de Argentina - Cl. B * (UTIT) 71,000 218
--------
667
Australia - 1.6%
Amcor, Ltd. (CONT) . . . . . . . . . . . 14,400 67
Brambles Industries, Ltd. (DIOP) . . . . 7,200 199
Broken Hill Proprietary Co., Ltd. (DIOP). 35,100 461
Coca Cola Amatil (FOOD) . . . . . . . . . 23,200 63
Coles Myer, Ltd. (RETS) . . . . . . . . . 27,200 140
CSR, Ltd. (CONS) . . . . . . . . . . . . 37,900 92
Foster's Brewing Group, Ltd. (FOOD) . . . 70,100 201
Lend Lease Corp. (FINL) . . . . . . . . . 13,200 185
National Australia Bank, Ltd. (BANK) . . 30,600 468
News Corp., Ltd. (MEDI) . . . . . . . . . 38,800 377
Normandy Mining, Ltd. * (PMET) . . . . . 94,800 67
North, Ltd. (META) . . . . . . . . . . . 34,600 82
Orica, Ltd. (DIOP) . . . . . . . . . . . 15,500 84
Pacific Dunlop, Ltd. (DIOP) . . . . . . . 59,000 83
Pioneer International, Ltd. (CONS) . . . 41,900 126
Rio Tinto, Ltd. (PMET) . . . . . . . . . 7,900 170
Santos, Ltd. (OILX) . . . . . . . . . . . 38,000 104
Telstra Corp., Ltd. (TELS) . . . . . . . 76,300 415
Westpac Banking Corp., Ltd. (BANK) . . . 46,600 321
WMC, Ltd. (DIOP) . . . . . . . . . . . . 29,500 163
--------
3,868
Austria - 1.0%
Austria Tabak AG (FOOD) . . . . . . . . . 3,700 179
Austrian Airlines (TRAN) . . . . . . . . 3,150 60
Bank Austria AG (BANK) . . . . . . . . . 13,000 733
BBAG Oesterreichische Brau Beteiligungs AG
(FOOD) . . . . . . . . . . . . . . . . . 2,150 87
Bohler-Uddeholm AG (STEE) . . . . . . . . 1,500 69
EA-Generali AG (INSU) . . . . . . . . . . 1,050 176
Flughafe n Wie n AG (TRAN) . . . . . . . 4,000 139
Mayr-Melnhof Karton Ag (PAPR) . . . . . . 1,800 83
Oesterreichische Elektrizitaetswirtschafts
AG (UTIE) . . . . . . . . . . . . . . . 3,200 450
OMV AG (OILX) . . . . . . . . . . . . . . 3,000 292
RHI AG (DIOP) . . . . . . . . . . . . . . 2,050 59
VA Technologie AG (ENGI) . . . . . . . . 1,400 92
Wienerberger Baustoffindustrie AG (CONS) 7,200 157
--------
2,576
Belgium - 1.1%
Barco NV (DIOP) . . . . . . . . . . . . . 559 78
Bekaert NV (METP) . . . . . . . . . . . . 1,390 77
Colruyt NV (RETF) . . . . . . . . . . . . 1,870 107
Compagnie Maritime Belge SA (TRAN) . . . 1,921 92
D'Ieteren SA (AUTO) . . . . . . . . . . . 290 119
Delhaize "Le Lion" SA (RETF) . . . . . . 1,955 147
Dolmen Computer Applications NV * (COMP) 187 6
Electrabel SA (UTIE) . . . . . . . . . . 1,236 405
Fortis (B) (INSU) . . . . . . . . . . . . 20,892 754
Groupe Bruxelles Lambert SA (FUND) . . . 1,094 220
Heidelberger Zement AG * (CONS) . . . . . 1,048
KBC Bancassurance Holding NV (BANK) . . . 4,940 266
N.V. Union Miniere SA * (META) . . . . . 1,461 57
Solvay SA (FINL) . . . . . . . . . . . . 2,115 175
Suez Lyonnaise des Eaux SA - Strip VVPR *
(DIOP) . . . . . . . . . . . . . . . . . 2,341
Total Fina SA - Strip VVPR * (DIOP) . . . 3,609
UCB SA (HEAL) . . . . . . . . . . . . . . 4,800 208
--------
2,711
Brazil - 0.2%
Centrais Electricas Brasileiras SA (UTIE) 10,577,000 231
Companhia Siderurgica Nacional * (STEE) . 1,655,000 64
Tele Norte Leste Participacoes SA (UTIT) 4,096,000 74
Telesp Participacoes SA * (UTIT) . . . . 5,219,000 72
--------
441
Chile - 0.4%
Banco Santiago SA - ADR (BANK) . . . . . 2,900 62
Compania Cervecerias Unidas SA - ADR
(FOOD) . . . . . . . . . . . . . . . . . 2,900 93
Compania de Telecomunicaciones de Chile SA
(UTIT) . . . . . . . . . . . . . . . . . 8,000 146
Embotelladora Andina SA - ADR (FOOD) . . 6,100 108
Empresa Nacional de Electricidad SA - ADR
(UTIE) . . . . . . . . . . . . . . . . . 10,100 143
Enersis SA - ADR - (UTIE) . . . . . . . . 3,700 87
Gener SA - ADR (UTIE) . . . . . . . . . . 3,500 54
Laboratorio Chile SA - ADR (HEAL) . . . . 5,700 104
Madeco SA - ADR (META) . . . . . . . . . 8,700 97
Sociedad Quimica y Minera de Chile SA -
ADR (CHEM) . . . . . . . . . . . . . . . 1,100 35
--------
929
China - 0.0%
Harbin Power Equipment Co., Ltd. - H
Shares (UTIE) . . . . . . . . . . . . . 1,148,000 62
Jinan Qingqi Motorcycle Co., Ltd. - B
Shares * (AUTO) . . . . . . . . . . . . 208,000 30
--------
92
</TABLE>
70
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Czech Republic - 0.1%
Ceska Sporitelna AS (BANK) . . . . . . . 9,500 $ 43
Ceske Energeticke Zavody AS (UTIE) . . . 20,000 49
Komercni Banka AS (BANK) . . . . . . . . 3,000 49
SPT Telecom AS (TELS) . . . . . . . . . . 6,300 102
--------
243
Denmark - 1.0%
A/S Dampskibsselskabet Svendborg - Cl. B
(TRAN) . . . . . . . . . . . . . . . . . 27 449
D/S 1912 - Cl. B (TRAN) . . . . . . . . . 40 471
Danisco A/S (FOOD) . . . . . . . . . . . 2,450 95
Den Danske Bank (BANK). . . . . . . . . . 2,250 247
Iss International Service System A/S - Cl.
B (COMM) . . . . . . . . . . . . . . . . 1,650 111
Novo-Nordisk A/S - Cl. B (HEAL) . . . . . 2,450 325
Tele Danmark A/S (TELS) . . . . . . . . . 8,150 606
Unidanmark A/S - Cl. A (BANK) . . . . . . 2,300 162
--------
2,466
Finland - 1.3%
Merita plc * (BANK) . . . . . . . . . . . 20,500 121
Nokia Oyj (TELE) . . . . . . . . . . . . 14,200 2,575
Outokumpu Oyj (META) . . . . . . . . . . 3,500 50
Sampo Insurance Co. plc (INSU) . . . . . 2,500 87
Sonera Oyj (TELS) . . . . . . . . . . . . 3,494 239
UPM-Kymmene Corp. * (PAPR). . . . . . . . 4,400 177
--------
3,249
France - 9.4%
Accor SA (LEIS) . . . . . . . . . . . . . 5,285 255
Air Liquide (CHEM) . . . . . . . . . . . 1,735 291
Alcatel Alsthom (TELE) . . . . . . . . . 4,190 962
AXA SA (INSU) . . . . . . . . . . . . . . 8,216 1,146
Banque Nationale de Paris (BANK) . . . . 12,171 1,123
Bouygues SA (CONS) . . . . . . . . . . . 847 538
Canal Plus (MEDI) . . . . . . . . . . . . 3,512 511
Cap Gemini SA (COMM) . . . . . . . . . . 1,622 412
Carrefour SA (RETF) . . . . . . . . . . . 9,023 1,664
Casino Guichard-Perrachon SA (RETF) . . . 2,053 235
Club Mediterranee SA (LEIS) . . . . . . . 1,000 116
Compagnie de St. Gobain (CONS) . . . . . 2,112 397
Eridania Beghin-Say SA (FOOD) . . . . . . 758 82
Essilor International SA (HEAL) . . . . . 358 111
France Telecom (TELS) . . . . . . . . . . 21,203 2,804
Group Danone * (FOOD) . . . . . . . . . . 1,801 425
Imercys (CONS) . . . . . . . . . . . . . 794 118
L'Oreal (HNBA) . . . . . . . . . . . . . 1,524 1,223
Lafarge SA (CONS) . . . . . . . . . . . . 2,526 294
Lagardere S.C.A. (DIOP) . . . . . . . . . 4,108 224
Michelin (PART) . . . . . . . . . . . . . 3,987 157
Louis Vuitton Moet Hennessy (FOOD). . . . 2,323 1,041
Pernod Ricard (FOOD) . . . . . . . . . . 1,763 101
Pinault-Printemps-Redoute SA (RETS) . . . 2,671 705
PSA Peugeot Citroen (AUTO). . . . . . . . 1,457 331
Rhone-Poule nc SA (BANK) . . . . . . . . 8,694 505
Sagem SA * (ETRN) . . . . . . . . . . . . 420 292
Sanofi-Synthelabo SA * (HEAL) . . . . . . 12,996 541
Schneider SA (MACH) . . . . . . . . . . . 3,911 307
Sidel SA (MACH) . . . . . . . . . . . . . 1,162 120
Societe BIC SA (COMM) . . . . . . . . . . 1,789 81
Societe Eurafrance SA (FINL) . . . . . . 162 98
Societe Generale de Paris (BANK). . . . . 2,584 601
Suez Lyonnaise des Eaux (DIOP) . . . . . 5,754 922
Thomson CFS (ETRN) . . . . . . . . . . . 3,440 114
Total Fina SA - Cl. B (OILX) . . . . . . 3,609 485
Total SA - Cl. B (OILX) . . . . . . . . . 15,421 2,058
Unibail (REAL) . . . . . . . . . . . . . 700 88
Usinor SA (STEE) . . . . . . . . . . . . 8,601 162
Valeo SA (PART) . . . . . . . . . . . . . 2,282 176
Vivendi (DIOP). . . . . . . . . . . . . . 12,592 1,137
--------
22,953
Germany - 13.5%
Adidas-Salomon AG (APPA) . . . . . . . . 1,920 144
Allianz AG - Reg. (INSU) . . . . . . . . 8,380 2,815
BASF AG (CHEM) . . . . . . . . . . . . . 21,860 1,123
Bayer AG (CHEM) . . . . . . . . . . . . . 24,980 1,183
Bayerische Vereinsbank AG (BANK) . . . . 15,172 1,036
Beiersdorf AG (HNBA) . . . . . . . . . . 4,120 277
Bilfinger & Berger Bau AG (CONS) . . . . 2,960 65
Buderus AG (DIOP) . . . . . . . . . . . . 2,860 48
Continental AG (PART). . . . . . . . . . 5,950 119
DaimlerChrysler AG * (AUTO) . . . . . . . 28,730 2,234
Deutsche Bank AG (BANK) . . . . . . . . . 18,150 1,533
Deutsche Telekom AG (TELS) . . . . . . . 101,940 7,260
Douglas Holding AG (HNBA) . . . . . . . . 1,890 81
Dresdner Bank AG (BANK) . . . . . . . . . 18,460 1,004
EM.TV & Merchandising AG (MEDI) . . . . . 1,973 127
Fresenius Medical Care AG (HEAL). . . . . 600 51
Heidelberg Zement (CONS). . . . . . . . . 2,530 199
Heidelberger Zement AG * (CONS) . . . . . 1,048 78
Hochtief AG (CONS) . . . . . . . . . . . 3,810 142
Karstadt AG (RETS) . . . . . . . . . . . 6,800 273
Linde AG (ENGI) . . . . . . . . . . . . . 3,300 181
Lufthansa AG (TRAN) . . . . . . . . . . . 14,730 343
MAN AG (DIOP) . . . . . . . . . . . . . . 4,400 165
Mannesmann AG (MACH) . . . . . . . . . . 13,349 3,221
Merck KGaA (HEAL) . . . . . . . . . . . . 7,360 228
Metro AG * (RETS) . . . . . . . . . . . . 9,200 495
Muenchener
Rueckversicherungs-Gesellschaft AG - Reg.
(INSU) . . . . . . . . . . . . . . . . . 5,110 1,296
Preussag AG (DIOP) . . . . . . . . . . . 6,400 357
RWE AG (OILX) . . . . . . . . . . . . . . 12,500 490
SAP AG (SOFT) . . . . . . . . . . . . . . 2,120 1,044
Schering AG (HEAL) . . . . . . . . . . . 2,530 306
SGL Carbon AG (CHEM) . . . . . . . . . . 1,190 79
Siemens AG (DIOP) . . . . . . . . . . . . 18,860 2,400
Thyssen Krupp AG (CONS) . . . . . . . . . 15,100 460
</TABLE>
71
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - Continued
Germany - Continued
VEBA AG (DIOP) . . . . . . . . . . . . . 18,130 $ 881
Viag AG (DIOP) . . . . . . . . . . . . . 26,520 486
Volkswagen AG (AUTO). . . . . . . . . . . 11,100 626
--------
32,850
Greece - 0.5%
Alpha Credit Bank (BANK) . . . . . . . . 2,940 230
Commercial Bank of Greece (BANK) . . . . 1,780 136
EFG Eurobank * (BANK) . . . . . . . . . . 1,680 73
Ergo Bank SA (BANK) . . . . . . . . . . . 760 73
Hellenic Bottling Co. SA (FOOD) . . . . . 2,900 67
Hellenic Telecommunication Organization
SA (UTIT) . . . . . . . . . . . . . . . 11,280 267
Intracom SA (TELE) . . . . . . . . . . . 2,240 103
National Bank of Greece SA (BANK) . . . . 4,600 339
Titan Cement Co. SA (CONS). . . . . . . . 1,400 83
--------
1,371
Hong Kong - 0.9%
Cheung Kong (Holdings), Ltd. (READ) . . . 23,000 291
CLP Holdings, Ltd. (UTIE) . . . . . . . . 31,500 145
Hang Seng Bank, Ltd. (BANK) . . . . . . . 22,700 259
Hong Kong Telecommunications, Ltd. (TELS) 135,800 392
Hutchison Whampoa, Ltd. (COMM) . . . . . 40,000 582
New World Development Co., Ltd. (READ). . 27,000 61
Sun Hung Kai Properties, Ltd. (REIT) . . 25,000 261
Swire Pacific, Ltd. - Cl. A (DIOP) . . . 23,500 139
Wharf (Holdings), Ltd. (DIOP) . . . . . . 44,000 102
--------
2,232
Hungary - 0.3%
Fotex Rt. (RETS) . . . . . . . . . . . . 101,800 37
Gedeon Richter Rt. (HEAL) . . . . . . . . 2,600 171
Magyar Tavkozlesi Rt. (UTIT) . . . . . . 46,500 326
MOL Magyar Olaj-es Gazipari Rt. (OILX) . 6,000 125
OTP Bank Rt. (BANK) . . . . . . . . . . . 2,300 135
--------
794
India - 0.8%
Arvind Mills, Ltd. - GDR (APPA) . . . . . 62,900 35
Bajaj Auto, Ltd. - GDR (AUTO) . . . . . . 14,300 132
Century Textiles & Industries, Ltd. - GDR
(DIOP) . . . . . . . . . . . . . . . . . 33,200 44
EIH, Ltd. - GDR (REAL) . . . . . . . . . 7,800 37
Grasim Industries, Ltd. - GDR (DIOP) . . 4,560 62
Great Eastern Shipping Co. - GDR (TRAN) . 20,800 49
Gujarat Ambuja Cements, Ltd. - GDR (CONS) 23,800 179
Hindalco Industries, Ltd. - GDR (META) . 5,500 128
India Cements, Ltd. - GDR (CONS). . . . . 39,800 74
Indian Hotels Co., Ltd. - GDR (REAL) . . 8,500 80
Indian Rayon and Industries, Ltd. - GDR
(DIOP) . . . . . . . . . . . . . . . . . 15,200 41
ITC, Ltd. - GDR * (FOOD) . . . . . . . . 9,100 177
Larsen & Toubro, Ltd. - GDR (DIOP). . . . 13,500 446
Mahindra & Mahindra, Ltd. - GDR * (AUTO) 8,600 92
Ranbaxy Laboratories, Ltd. - GDR (HEAL) . 4,900 106
Reliance Industries, Ltd. - GDR * (CHEM) 17,400 245
Tata Engineering and Locomotive Co., Ltd.
- GDR (AUTO) . . . . . . . . . . . . . . 17,000 89
--------
2,016
Ireland - 0.5%
Allied Irish Banks plc (BANK) . . . . . . 26,800 305
CRH plc (CONS) . . . . . . . . . . . . . 13,300 287
Eircom plc * (TELS) . . . . . . . . . . . 60,667 260
Greencore Group plc (FOOD). . . . . . . . 26,000 80
Irish Life & Permanent plc (FINL) . . . . 9,553 90
Jefferson Smurfit Group plc (CONT) . . . 30,400 92
Kerry Group plc (FOOD) . . . . . . . . . 8,400 101
--------
1,215
Israel - 0.3%
Bank Hapoalim (BANK) . . . . . . . . . . 43,700 136
Bezeq Israeli Telecommunication Corp.,
Ltd. (UTIT) . . . . . . . . . . . . . . 28,300 141
First International Bank of Israel, Ltd.
(1) (BANK) . . . . . . . . . . . . . . . 33,700 45
First International Bank of Israel, Ltd.
(5) (BANK) . . . . . . . . . . . . . . . 6,500 44
IDB Holding Corp., Ltd. (FUND) . . . . . 1,900 63
Industrial Building Corp. (CONS) . . . . 45,100 69
Makteshim-Agan Industries, Ltd. * (CHEM) 26,900 47
Supersol, Ltd. * (RETF) . . . . . . . . . 23,700 81
Teva pharmaceutical Industries, Ltd.
(HEAL) . . . . . . . . . . . . . . . . . 1,600 110
--------
736
Italy - 7.1%
Alitalia SpA (TRAN) . . . . . . . . . . . 60,000 143
Assicurazioni Generali (INSU) .. . . . . . 42,250 1,396
Autogrill SpA (RETF) . . . . . . . . . . 5,541 70
Banca Intesa SpA (BANK) . . . . . . . . . 147,800 600
Banca Intesa SpA - RNC (BANK) . . . . . . 37,400 76
Banca Popolare di Milano (BANK) . . . . . 18,100 141
Benetton Group SpA (APPA) . . . . . . . . 103,979 239
Beni Stabili SpA * (REAL) . . . . . . . . 62,154 22
Bulgari SpA (RETS) . . . . . . . . . . . 18,900 170
Burgo (Cartiere) SpA (PAPR) . . . . . . . 16,700 110
Credito Italiano SpA (BANK) . . . . . . . 201,600 991
ENI SpA (OILS) . . . . . . . . . . . . . 328,800 1,808
</TABLE>
72
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Italy - Continued
Fiat SpA (AUTO) . . . . . . . . . . . . . 21,350 $ 549
Fiat SpA - RNC (AUTO) . . . . . . . . . . 3,720 55
Istituto Bancario San Paolo di Torino
(BANK) . . . . . . . . . . . . . . . . . 62,154 845
Istituto Nazionale delle Assicurazioni
(INSU) . . . . . . . . . . . . . . . . . 187,600 497
Italcementi SpA (CONS) . . . . . . . . . 10,500 127
Italgas SpA (UTIG) . . . . . . . . . . . 40,300 153
La Rinascente SpA (CONS). . . . . . . . . 10,500 67
Marzotto & Figli SpA (APPA) . . . . . . . 7,500 54
Mediaset SpA (MEDI) . . . . . . . . . . . 56,200 874
Mediobanca SpA (FUND) . . . . . . . . . . 20,000 204
Mondadori (Arnoldo) Editore SpA (MEDP) . 8,400 266
Montedison SpA (CHEM) . . . . . . . . . . 114,540 187
Olivetti SpA (COMM) . . . . . . . . . . . 198,400 575
Parmalat Finanziaria SpA (FOOD) . . . . . 77,600 99
Pirelli SpA (DIOP) . . . . . . . . . . . 81,100 223
Riunione Adriatica di Sicorta SpA (INSU) 18,650 187
Riunione Adriatica di Sicorta SpA - RNC
(INSU) . . . . . . . . . . . . . . . . . 11,600 93
Sirti SpA (TELE) . . . . . . . . . . . . 11,100 40
Societa Assicuratrice Industriale (INSU) 8,600 96
Telecom Italia Mobile SpA (TELS) . . . . 280,100 3,129
Telecom Italia Mobile SpA - RNC (TELS) . 68,200 325
Telecom Italia SpA * (TELS) . . . . . . . 171,500 2,419
Telecom Italia SpA - RNC (TELS) . . . . . 47,300 288
Unione Immobiliare SpA * (REAL) . . . . . 264,910 123
--------
17,241
Japan - 30.9%
77 Bank, Ltd. (BANK) . . . . . . . . . . 18,000 189
Acom Co., Ltd. (LEND) . . . . . . . . . . 4,200 411
Advantest (ETRN) . . . . . . . . . . . . 2,900 766
Ajinomoto Co., Inc. (FOOD) . . . . . . . 20,000 208
Alps Electric Co. (ETRN) . . . . . . . . 7,000 107
Amada Co., Ltd (MACH) . . . . . . . . . . 13,000 71
Aoyama Trading Co. (RETS) . . . . . . . . 2,600 56
Arabian Oil Co., Ltd. (OILS) . . . . . . 4,200 72
Asahi Bank, Ltd. (BANK) . . . . . . . . . 66,000 407
Asahi Breweries, Ltd. (FOOD) . . . . . . 13,000 142
Asahi Chemical Industry Co., Ltd. (CHEM) 42,000 216
Asahi Glass Co., Ltd. (APPL) . . . . . . 39,000 302
Bank of Tokyo-Mitsubishi (BANK) . . . . . 127,000 1,770
Bank of Yokohama, Ltd. (BANK) . . . . . . 10,000 46
Benesse Corp. (COMM). . . . . . . . . . . 1,300 313
Bridgestone Corp. (PART) . . . . . . . . 21,000 462
Canon, Inc. (COMM) . . . . . . . . . . . 25,000 993
Casio Computer Co. (ETRN) . . . . . . . . 9,000 75
Chiyoda Corp. * (ENGI) . . . . . . . . . 16,000 23
Citizen Watch Co., Ltd. (RETS). . . . . . 10,000 64
Cosmo Oil Co., Ltd. (OILX) . . . . . . . 33,000 49
Credit Saison Co., Ltd. (FINL) . . . . . 5,600 98
CSK Corp. (SOFT) . . . . . . . . . . . . 3,200 520
Dai Nippon Printng Co., Ltd. (COMM) . . . 19,000 303
Daicel Chemical Industries, Ltd. (CHEM) . 16,000 45
Daiichi Pharmaceutical Co., Ltd. (HEAL) . 10,000 130
Daikin Industries, Ltd. (CONS) . . . . . 10,000 136
Dainippon Ink & Chemicals, Inc. (CHEM) . 28,000 83
Dainippon Screen Manufacturing Co., Ltd.
(ELEQ) . . . . . . . . . . . . . . . . . 9,000 54
Daito Trust Construction Co., Ltd. (REAL) 2,200 25
Daiwa House Industry Co., Ltd. (HOUS) . . 17,000 126
Daiwa Securities Co., Ltd. (FUND) . . . . 37,000 579
Denso Corp. (ETRN) . . . . . . . . . . . 24,000 573
East Japan Railway Co. (TRAN) . . . . . . 107 577
Ebara Corp. (MACH) . . . . . . . . . . . 9,000 100
Eisai Co. Ltd. (HEAL) . . . . . . . . . . 10,000 192
Fanuc, Ltd. (ELEQ) . . . . . . . . . . . 6,800 866
Fuji Bank, Ltd. (BANK) . . . . . . . . . 95,000 923
Fuji Photo Film (LEIS) . . . . . . . . . 14,000 511
Fuji Soft ABC, Inc. (SOFT) . . . . . . . 1,000 78
Fujikura (ELEQ) . . . . . . . . . . . . . 11,000 44
Fujitsu, Ltd. (ELEQ) . . . . . . . . . . 51,000 2,326
Furukawa Electric Co. (TELE) . . . . . . 10,000 152
Hankyu Corp. (TRAN) . . . . . . . . . . . 23,000 82
Hirose Electric Co., Ltd. (ETRN) . . . . 1,500 336
Hitachi Zosen Corp. (CONS) . . . . . . . 52,000 39
Hitachi, Ltd. (ETRN) . . . . . . . . . . 88,000 1,413
Honda Motor Co. (AUTO) . . . . . . . . . 26,000 967
Hoya Corp. (ETRN) . . . . . . . . . . . . 4,000 315
Industrial Bank of Japan (BANK) . . . . . 65,000 627
Isetan Co., Ltd. (RETS) . . . . . . . . . 14,000 103
Ito-Yokado Co., Ltd. (RETS) . . . . . . . 12,000 1,304
Itochu Corp. (DIOP) . . . . . . . . . . . 48,000 239
Japan Airlines Co., Ltd. (TRAN) . . . . . 63,000 187
Japan Energy Corp. (OILX) . . . . . . . . 86,000 78
Japan Tobacco, Inc. (FOOD) . . . . . . . 38 291
Joyo Bank, Ltd. (BANK) . . . . . . . . . 29,000 133
JUSCO Co., Ltd. * (RETS) . . . . . . . . 11,000 192
Kajima Corp. (CONS) . . . . . . . . . . . 35,000 104
Kaneka Corp. (CHEM) . . . . . . . . . . . 14,000 179
Kansai Electric Power Co., Inc. (UTIE) . 20,100 350
KAO Corp. (HNBA) . . . . . . . . . . . . 16,000 457
Kawasaki Heavy Industry, Ltd. (DIOP) . . 46,000 61
Kawasaki Steel Corp. (STEE) . . . . . . . 100,000 179
Keihin Electric Express Railway Co., Ltd.
(TRAN) . . . . . . . . . . . . . . . . . 35,000 120
Kinden Corp. (ENGI) . . . . . . . . . . . 12,000 92
Kinki Nippon Railway (TRAN) . . . . . . . 35,000 140
Kirin Brewery Co. (FOOD) . . . . . . . . 31,000 326
Kokuyo Co. (COMM) . . . . . . . . . . . . 6,000 80
Komatsu, Ltd. (MACH) . . . . . . . . . . 30,000 138
Komori Corp. (MACH) . . . . . . . . . . . 4,000 76
</TABLE>
73
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Japan - Continued
Konami Co., Ltd. (COMP) . . . . . . . . . 1,300 $ 232
Konica Corp. (LEIS) . . . . . . . . . . . 17,000 63
Kubota Corp. (MACH) . . . . . . . . . . . 48,000 184
Kuraray Co., Ltd. (APPA) . . . . . . . . 10,000 101
Kurita Water Industries, Ltd. (POLL) . . 5,000 79
Kyocera Corp. (ETRN) . . . . . . . . . . 5,600 1,452
Makita Corp. (CNSU) . . . . . . . . . . . 8,000 72
Marubeni Corp. (DIOP) . . . . . . . . . 55,000 231
Marui Co., Ltd. (RETS) . . . . . . . . . 13,000 194
Matsushita Electric Industrial Co. (ETRN) 53,000 1,468
Minebea Co., Ltd. (CHEM) . . . . . . . . 13,000 223
Mitsubishi Chemical Corp. (CHEM) . . . . 61,000 215
Mitsubishi Corp. (DIOP) . . . . . . . . . 44,000 340
Mitsubishi Electric Corp. (ETRN) . . . . 65,000 420
Mitsubishi Estate Co., Ltd. (REAL) . . . 37,000 361
Mitsubishi Heavy Industries, Ltd. (MACH) 90,000 300
Mitsubishi Logistcs Corp. (TRAN) . . . . 7,000 45
Mitsubishi Materials Corp. (PMET) . . . . 39,000 95
Mitsubishi Rayon Co., Ltd. (APPA) . . . . 27,000 66
Mitsubishi Trust & Banking Corp. (BANK) . 37,000 326
Mitsui & Co., Ltd. (DIOP) . . . . . . . . 46,000 322
Mitsui Engineering & Shipbuilding Co.,
Ltd. * (CONS) . . . . . . . . . . . . . 48,000 33
Mitsui Fudosan (REAL) . . . . . . . . . . 24,000 163
Mitsui Marine & Fire Insurance Co., Ltd.
(INSU) . . . . . . . . . . . . . . . . . 25,000 148
Mitsui Mining & Smelting Co., Ltd. (META) 17,000 80
Mitsui Trust & Banking Co., Ltd. (BANK) . 27,000 61
Mitsukoshi, Ltd. (RETS) . . . . . . . . . 14,000 49
Mori Seiki Co., Ltd. (MACH) . . . . . . . 5,000 67
Murata Manufacturing Co., Ltd. (ETRN) . . 7,000 1,644
Mycal Corp. (RETS) . . . . . . . . . . . 20,000 87
NAMCO, Ltd. (LEIS) . . . . . . . . . . . 3,800 246
NEC Corp. (COMP) . . . . . . . . . . . . 43,000 1,025
NGK Insulators (PART) . . . . . . . . . . 13,000 97
NGK Spark Plug Co. (PART) . . . . . . . . 11,000 101
Nichiei Co., Ltd. (LEND) . . . . . . . . 1,500 33
Nidec Corp. (MACH) . . . . . . . . . . . 1,000 289
Nikon Corp. (LEIS) . . . . . . . . . . . 11,000 323
Nintendo Corp., Ltd. (LEIS) . . . . . . . 3,800 632
Nippon Comsys Corp. (ENGI) . . . . . . . 6,000 124
Nippon Express Co., Ltd. (TRAN) . . . . . 31,000 171
Nippon Mitsubishi Oil Co., Ltd. (OILX) . 59,000 260
Nippon Paper Industries Co. (PAPR) . . . 25,000 138
Nippon Steel Co. (STEE) . . . . . . . . . 188,000 440
Nippon Telegraph & Telephone Corp. (UTIT) 346 5,926
Nippon Yusen Kabushiki Kaisha (TRAN) . . 54,000 221
Nissan Motor Acceptance Corp. (FINL) . . 64,000 252
Nitto Denko Corp. (ETRN) . . . . . . . . 7,000 350
Nomura Securities Co., Ltd. (FUND) . . . 50,000 903
NSK, Ltd. (META) . . . . . . . . . . . . 20,000 137
NTN Corp. (METP) . . . . . . . . . . . . 23,000 68
Obayashi Corp. (CONS) . . . . . . . . . . 22,000 104
Oji Paper Co. (PAPR) . . . . . . . . . . 27,000 163
Okuma Corp. (MACH) . . . . . . . . . . . 11,000 34
Olympus Optical Co. (LEIS) . . . . . . . 11,000 156
Omron Corp. (ETRN) . . . . . . . . . . . 8,000 184
Onward Kashiyama Co., Ltd. (APPA) . . . . 9,000 123
Oriental Land Co., Ltd. (LEIS) . . . . . 1,000 86
Orix Corp. (FINL) . . . . . . . . . . . . 2,000 451
Osaka Gas Co. (UTIG) . . . . . . . . . . 81,000 195
Pioneer Corp. (ETRN) . . . . . . . . . . 6,000 159
Promise Co., Ltd. (LEND) . . . . . . . . 2,600 132
RENOWN, Inc. * (APPA) . . . . . . . . . . 23,000 56
Rohm Co., Ltd. (ETRN) . . . . . . . . . . 3,000 1,233
Sakura Bank, Ltd. (BANK) . . . . . . . . 116,000 672
Sankyo Co., Ltd. (HEAL) . . . . . . . . . 13,000 267
Sanrio Co., Ltd. * (CNSU) . . . . . . . . 3,000 111
Sanyo Electric Co. (ETRN) . . . . . . . . 56,000 227
Secom Co. (ETRN) . . . . . . . . . . . . 8,000 881
Sega Enterprises (CNSU) . . . . . . . . . 4,300 137
Sekisui Chemical Co. (CHEM) . . . . . . . 20,000 89
Sekisui House, Ltd. (CONS) . . . . . . . 25,000 221
Sharp Corp. (ETRN) . . . . . . . . . . . 31,000 793
Shimamura Co., Ltd. (RETS) . . . . . . . 1,000 159
SHIMANO, Inc. (LEIS) . . . . . . . . . . 5,000 88
Shimizu Corp. (CONS) . . . . . . . . . . 29,000 96
Shin-Etsu Chemical Co. (CHEM) . . . . . . 9,000 388
Shionogi & Co., Ltd. (HEAL) . . . . . . . 14,000 170
Shiseido Co., Ltd. (CHEM) . . . . . . . . 14,000 204
Shizuoka Bank, Ltd. (BANK) . . . . . . . 19,000 195
Showa Shell Sekiyu K.K. (OILX) . . . . . 21,000 93
SMC Corp. (MACH) . . . . . . . . . . . . 2,000 443
Softbank Corp. * (SOFT) . . . . . . . . . 3,000 2,872
Sony Corp. (ETRN) . . . . . . . . . . . . 11,000 3,262
Sumitomo Bank (BANK) . . . . . . . . . . 86,000 1,178
Sumitomo Chemical Co. (CHEM) . . . . . . 48,000 226
Sumitomo Corp. (DIOP) . . . . . . . . . . 32,000 310
Sumitomo Electric Industries (TELE) . . . 19,000 220
Sumitomo Heavy Industry (MACH) . . . . . 31,000 85
Sumitomo Marine & Fire Insurance Co., Ltd.
(INSU) . . . . . . . . . . . . . . . . . 24,000 148
Sumitomo Metal Industries (STEE) . . . . 102,000 77
Sumitomo Metal Mining Co. (PMET) . . . . 17,000 38
Taisho Pharmaceutical Co., Ltd. (HEAL) . 10,000 294
Taiyo Yuden Co., Ltd. (ELEQ) . . . . . . 4,000 237
Takashimaya Co. (RETS) . . . . . . . . . 12,000 83
Takeda Chemical Industries (HEAL) . . . . 24,000 1,186
Takefuji Corp. (LEND) . . . . . . . . . . 3,000 376
Teijin, Ltd. (APPA) . . . . . . . . . . . 30,000 111
Teikoku Oil Co., Ltd. (OILX) . . . . . . 19,000 58
Terumo Corp. (HEAL) . . . . . . . . . . . 4,000 107
The Daiwa Bank, Ltd. (BANK) . . . . . . . 39,000 115
</TABLE>
74
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Japan - Continued
Tobu Railway Co., Ltd. (TRAN) . . . . . . 36,000 $ 106
Toho Co., Ltd. (MEDI) . . . . . . . . . . 1,200 175
Tohoku Electric Power (UTIE) . . . . . . 13,000 193
Tokai Bank Ltd. (BANK) . . . . . . . . . 53,000 334
Tokio Marine & Fire Insurance Co. (INSU) 42,000 491
Tokyo Broadcasting (MEDI) . . . . . . . . 7,000 237
Tokyo Dome Corp. (LEIS) . . . . . . . . . 7,000 34
Tokyo Electric Power (UTIE) . . . . . . . 35,700 957
Tokyo Electron, Ltd. (ETRN) . . . . . . . 5,000 685
Tokyo Gas Co. (OILX) . . . . . . . . . . 86,000 210
Tokyu Corp. (TRAN) . . . . . . . . . . . 26,000 63
Toppan Printing Co. (CNSU) . . . . . . . 20,000 200
Toray Industries, Inc. (APPA) . . . . . . 33,000 128
Toshiba Corp. (ETRN) . . . . . . . . . . 78,000 595
Tostem Corp. (CONS) . . . . . . . . . . . 8,000 144
Toto, Ltd. (APPL) . . . . . . . . . . . . 13,000 79
Toyo Seikan Kaisha, Ltd. (CONT) . . . . . 8,000 116
Toyota Motor Corp. (AUTO) . . . . . . . . 102,000 4,942
Trans Cosmos, Inc. (SOFT) . . . . . . . . 700 299
Uni-Charm Corp. (PAPR) . . . . . . . . . 3,000 173
UNY Co., Ltd. (RETS) . . . . . . . . . . 11,000 108
Wacoal Corp. (APPA) . . . . . . . . . . . 11,000 97
Yamaha Corp. (LEIS) . . . . . . . . . . . 6,000 39
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) 10,000 349
Yamato Transport Co., Ltd. (TRAN) . . . . 14,000 543
Yokogawa Electric (ETRN) . . . . . . . . 11,000 78
--------
75,316
Mexico - 1.1%
Alfa, SA * (DIOP) . . . . . . . . . . . . 16,000 75
Apasco SA de CV (CONS) . . . . . . . . . 6,000 37
Cemex SA de CV - CPO * (CONS) . . . . . . 34,000 190
Cifra SA de CV - Ser. C (RETS) . . . . . 25,000 48
Cifra SA de CV - Ser. V (RETS) . . . . . 96,000 192
Desc SA de CV - Ser. B (DIOP) . . . . . . 39,000 32
Fomento Economico Mexicano SA de C.V.
(FOOD) . . . . . . . . . . . . . . . . . 20,000 89
Grupo Carso SA de CV - Ser. A1 (DIOP) . . 24,000 120
Grupo Financiero Banamex Accival SA de CV
(Banacci) (FINL) . . . . . . . . . . . . 35,000 140
Grupo Financiero Bancomer SA de CV - Cl. O
(FINL) . . . . . . . . . . . . . . . . . 157,000 66
Grupo Mexico SA - Ser. B (META) . . . . . 18,000 89
Grupo Modelo SA de CV - C Shares (FOOD) . 62,000 170
Grupo SA de CV - Ser. A (FOOD) . . . . . 24,000 54
Grupo Televisa SA * (MEDI) . . . . . . . 6,000 203
Industrias Penoles SA * (META) . . . . . 20,000 58
Kimberly-Clark de Mexico SA de CV (PAPR) 47,000 183
Telephonos de Mexico SA - Ser. L (UTIT) . 163,000 912
--------
2,658
Netherlands - 2.7%
ABN Amro Holding NV (BANK) . . . . . . . 18,400 460
Aegon NV (INSU) . . . . . . . . . . . . . 6,100 589
Akzo Nobel NV (CHEM) . . . . . . . . . . 3,850 193
ASM Lithography Holding NV (ETRN) . . . . 800 89
Elsevier NV (MEDP) . . . . . . . . . . . 10,500 125
Heineken NV (FOOD) . . . . . . . . . . . 4,375 213
ING Groep NV (BANK) . . . . . . . . . . . 9,800 592
Koninklijke (Royal) Philips Electronics NV
(ETRN) . . . . . . . . . . . . . . . . . 3,932 535
Koninklijke Ahold NV (RETF) . . . . . . . 7,000 207
KPN NV (UTIT) . . . . . . . . . . . . . . 6,556 640
Royal Dutch Petroleum Co. (OILS) . . . . 22,650 1,388
STMicroelectronics * (ETRN) . . . . . . . 5,474 843
TNT Post Group NV (TRAN) . . . . . . . . 5,610 161
Unilever NV - CVA (CNSU) . . . . . . . . 5,819 322
Wolters Kluwer NV - CVA (MEDP) . . . . . 4,400 149
--------
6,506
New Zealand - 0.3%
Brierley Investments, Ltd. (LEIS) . . . . 295,300 62
Carter Holt Harvey, Ltd. (PAPR) . . . . . 88,200 115
Telecom Corp. of New Zealand, Ltd. (TELS) 98,600 464
--------
641
Norway - 0.6%
ASK Proxima ASA * (COMP) . . . . . . . . 3,520 25
Den Norske Bank ASA (BANK) . . . . . . . 28,960 119
Kvaerner ASA - B Shares (CONS) . . . . . 1,900 33
Kvaerner plc (CONS) . . . . . . . . . . . 3,140 66
Leif Hoegh & Co. ASA (TRAN) . . . . . . . 8,340 99
Merkantildata ASA (SOFT) . . . . . . . . 4,300 52
NCL Holdings ASA * (LEIS) . . . . . . . . 13,800 60
Norsk Hydro ASA (DIOP) . . . . . . . . . 9,340 392
Norske Skogsindustrier ASA - Cl. A (PAPR) 2,500 131
Orkla ASA (DIOP) . . . . . . . . . . . . 7,920 137
Petroleum Geo-Services ASA (OILE) . . . . 6,240 111
Smedvig ASA - A Shares (OILS) . . . . . . 4,800 60
Smedvig ASA - B Shares (OILS) . . . . . . 5,200 55
Storebrand ASA (INSU) . . . . . . . . . . 13,040 99
Tomra Systems ASA (COMM) . . . . . . . . 1,600 27
--------
1,466
Peru - 0.1%
Credicorp, Ltd. (BANK) . . . . . . . . . 3,600 43
Telefonica del Peru S.A.A. - Cl. B (UTIT) 91,700 119
--------
162
</TABLE>
75
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Philippines - 0.1%
Ayala Land, Inc. (READ) . . . . . . . . . 182,300 $ 48
Metropolitan Bank & Trust Co. (BANK) . . 13,090 94
Petron Corp. (OILS) . . . . . . . . . . . 468,400 37
Philippine Long Distance Telephone Co.
(UTIT) . . . . . . . . . . . . . . . . . 3,200 81
SM Prime Holdings, Inc. (READ) . . . . . 545,000 103
--------
363
Portugal - 0.5%
Banco Comercial Portgues SA (BANK) . . . 33,000 183
Banco Espirito Santo SA (BANK) . . . . . 1,100 31
BPI-SGPS, SA - Registered Shares (FUND) . 32,490 139
Brisa-Auto Estradas de Portugal SA (CONS) 8,375 64
EDP-Electricidade de Portugal SA (UTIE) . 9,000 157
Estabelecimentos Jeronimo Martins &
Filho, Sociedade Gestora de Participacoes
Sociais SA (RETF) . . . . . . . . . . . 3,600 92
Portugal Telecom, SA (TELS) . . . . . . . 36,700 403
Sonae Investimento-Sociedade Gestora de
Participacoes Sociais SA (RETS) . . . . 1,200 63
--------
1,132
Singapore - 0.3%
City Developments, Ltd. (READ) . . . . . 41,000 240
Cycle & Carriage, Ltd. (AUTO) . . . . . . 4,000 12
DBS Group Holdings, Ltd. (BANK) . . . . . 9,000 148
First Capital Corp., Ltd. (READ) . . . . 31,000 41
Hotel Properties, Ltd. (REAL) . . . . . . 50,000 45
Singapore Telecommunications, Ltd. (TELS) 114,000 235
United Overseas Bank, Ltd. (BANK) . . . . 8,448 75
--------
796
South Africa - 1.1%
ABSA Group, Ltd. (BANK) . . . . . . . . . 24,600 110
Anglo American Platinum Corp., Ltd. (PMET) 5,400 164
Barlow, Ltd. (DIOP) . . . . . . . . . . . 11,700 84
De Beers Centenary AG (UTIE) . . . . . . 9,100 265
Dimension Data Holdings, Ltd. (COMP) . . 16,983 106
FirstRand, Ltd. (FINL) . . . . . . . . . 164,400 235
Foschini, Ltd. * (RETS) . . . . . . . . . 37,100 102
Impala Platinum Holdings, Ltd. (META) . . 2,600 105
Imperial Holdings, Ltd. (DIOP) . . . . . 9,711 106
Investec Group, Ltd. (FUND) . . . . . . . 2,300 102
JD Group, Ltd. (APPL) . . . . . . . . . . 6,400 55
Liberty Life Association of Africa, Ltd.
(INSU) . . . . . . . . . . . . . . . . . 12,400 143
M-Cell, Ltd. (TELS) . . . . . . . . . . . 40,200 155
Metropolitan Life, Ltd. (INSU) . . . . . 30,200 53
Nampak, Ltd. (CONT) . . . . . . . . . . . 25,500 77
Nedcor, Ltd. (BANK) . . . . . . . . . . . 6,600 147
Pepkor, Ltd. * (RETS) . . . . . . . . . . 9,700 46
Rembrandt Group, Ltd. (DIOP) . . . . . . 15,300 146
Sappi, Ltd. (READ) . . . . . . . . . . . 10,900 108
Sasol, Ltd. (OILX) . . . . . . . . . . . 12,800 108
South African Breweries plc (FOOD) . . . 19,300 196
--------
2,613
South Korea - 1.3%
Cheil Jedang Corp. (FOOD) . . . . . . . . 1,780 205
Hankook Tire Co., Ltd. (PART) . . . . . . 18,030 51
Housing & Commercial Bank, Korea (BANK) . 1,520 48
Hyundai Motor Co., Ltd. (AUTO) . . . . . 7,570 120
Kookmin Bank (BANK) . . . . . . . . . . . 8,310 130
Korea Electric Power Corp. (UTIE) . . . . 14,790 458
L.G. Chemicals, Ltd. (CHEM) . . . . . . . 4,630 146
L.G. Securities Co. (FINL) . . . . . . . 1,800 31
LG Electronics, Inc. - GDR * (ETRN) . . . 7,980 165
Pohang Iron & Steel Co., Ltd. (STEE) . . 1,570 173
Samsung Corp. (ETRN) . . . . . . . . . . 6,120 92
Samsung Display Devices Co. (ETRN) . . . 2,610 108
Samsung Electro-Mechanics Co. (ETRN) . . 2,690 179
Samsung Electronics (ETRN) . . . . . . . 3,840 900
Samsung Fire & Marine Insurance (INSU) . 1,780 57
Shinhan Bank (BANK) . . . . . . . . . . . 7,310 79
SK Corp. (OILS) . . . . . . . . . . . . . 4,651 141
SK Telecom Co., Ltd. (TELS) . . . . . . . 60 215
--------
3,298
Spain - 3.2%
Altadis * (FOOD) . . . . . . . . . . . . 7,714 110
Autopistas Concesionaria Espanola SA
(TRAN) . . . . . . . . . . . . . . . . . 13,503 131
Banco Bilbao Vizcaya SA (BANK) . . . . . 61,300 873
Banco Santander Central Hispano SA (BANK) 90,100 1,020
Corporacion Bancaria de Espana SA (BANK) 15,300 360
Corporacion Financiera Alba SA (FUND) 6,000 205
Corporacion Mapfre SA (INSU) . . . . . . 2,100 35
Endesa SA (UTIE) . . . . . . . . . . . . 28,100 558
Fomento de Construcciones y Contratas SA
(CONS) . . . . . . . . . . . . . . . . . 4,600 94
Gas Natural SDG SA - E Shares (UTIG) . . 13,800 318
Grupo Dragados SA (CONS) . . . . . . . . 8,400 74
Iberdrola SA (UTIE) . . . . . . . . . . . 27,500 381
Repsol SA (OILX) . . . . . . . . . . . . 30,000 696
Sociedad General de Aguas de Barcelona SA
(FOOD) . . . . . . . . . . . . . . . . . 8,484 124
Sol Melia SA (LEIS) . . . . . . . . . . . 5,700 65
Telefonica SA (UTIT) . . . . . . . . . . 96,145 2,402
TelePizza, SA * (RETF) . . . . . . . . . 3,078 13
Union Electrica Fenosa SA (UTIE) . . . . 12,200 213
</TABLE>
76
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - Continued
Spain - Continued
Vallehermoso SA (READ) . . . . . . . . . 8,700 $ 61
Zardoya Otis SA (MACH) . . . . . . . . . 8,866 87
--------
7,820
Sweden - 1.6%
Drott AB - B Shares (REAL) . . . . . . . 10,200 116
ForeningsSparbanken AB (BANK) . . . . . . 8,700 128
Hennes & Mauritz AB - B Shares (RETS) . . 13,800 462
NetCom Systems, Inc. - Cl. B (TELS) . . . 2,032 143
Sandvik AB - Cl. A (MACH) . . . . . . . . 4,950 155
Securitas AB - B Shares (COMM) . . . . . 9,200 167
Skand Enskilda Banken - Cl. A (BANK) . . 10,200 103
Skandia Forsakrings AB (INSU) . . . . . . 9,500 287
Skanska AB (CONS) . . . . . . . . . . . . 3,100 115
Svenska Cellulosa AB - Cl. B (PAPR) . . 4,500 133
Svenska Handelsbanken, Inc. - A Shares
(BANK) . . . . . . . . . . . . . . . . . 6,350 80
Telefonaktiebolaget LM Ericsson - B Shares
(TELE) . . . . . . . . . . . . . . . . . 28,000 1,800
Volvo AB (AUTO) . . . . . . . . . . . . . 5,750 149
--------
3,838
Switzerland - 1.5%
ABB, Ltd. * (ENGI) . . . . . . . . . . . 4,047 494
Credit Suisse Group - Reg. (BANK) . . . . 1,970 392
Nestle SA (FOOD) . . . . . . . . . . . . 260 476
Novartis AG (HEAL) . . . . . . . . . . . 380 558
Roche Holding AG (HEAL) . . . . . . . . . 55 697
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) . 110 226
Swisscom AG - Reg. (UTIT) . . . . . . . . 340 137
UBS AG - Reg. (BANK) . . . . . . . . . . 1,613 436
Zurich Allied AG (INSU) . . . . . . . . . 340 194
--------
3,610
Thailand - 0.3%
ABN Amro Asia Securities Public Co., Ltd.
(FINL) . . . . . . . . . . . . . . . . . 23,000 42
Advance Agro Public Co., Ltd. * (PAPR) . 69,000 35
Bangkok Insurance Public Co., Ltd. (INSU) 12,200 40
Electricity Generating Public, Co., Ltd.
- Foreign R Shares (UTIE) . . . . . . . 42,200 52
Italian-Thai Development Public Co., Ltd.
(CONS) . . . . . . . . . . . . . . . . . 37,400 57
National Petrochemical Public Co., Ltd.
(CHEM) . . . . . . . . . . . . . . . . . 42,100 46
PTT Exploration and Production Public Co.,
Ltd. (OILX) . . . . . . . . . . . . . . 11,100 68
Saha-Union Public Co., Ltd. (APPA) . . . 102,700 34
Sermsuk Public Co., Ltd. (FOOD) . . . . . 7,300 26
Siam Cement Public Co., Ltd. (CONS) . . 4,000 133
TelecomAsia Corp. Public Co., Ltd. *
(UTIT) . . . . . . . . . . . . . . . . . 113,200 147
Thai Reinsurance Public Co., Ltd. (INSU) 36,200 37
--------
717
Turkey - 0.5%
Arcelik AS (APPL) . . . . . . . . . . . . 2,184,000 143
Kartonsan Karton Sanayi Ve Ticaret AS
(PAPR) . . . . . . . . . . . . . . . . . 1,083,000 68
Migros Turk T.A.S. (RETF) . . . . . . . . 129,000 83
Turkiye Garanti Bankasi AS (BANK) . . . . 12,113,000 183
Turkiye Is Bankasi (Isbank) - Cl. C (BANK) 8,996,000 431
Yapi ve Kredi Bankasi AS (BANK) . . . . . 9,130,000 282
--------
1,190
United Kingdom - 7.3%
Abbey National First Capital BV (BANK) . 16,000 256
Allied Zurich * (INSU) . . . . . . . . . 18,600 219
AstraZeneca Group plc (HEAL) . . . . . . 21,139 878
Barclays Bank (BANK) . . . . . . . . . . 15,300 440
Bass plc (FOOD) . . . . . . . . . . . . . 11,100 140
BG Group plc (UTIG) . . . . . . . . . . . 37,866 244
BOC Group plc (CHEM) . . . . . . . . . . 7,000 151
Boots Co. plc (RETD) . . . . . . . . . . 10,700 105
BP Amoco plc (OILE) . . . . . . . . . . . 231,900 2,341
British Aerospace plc (AERO) . . . . . . 32,263 212
British Airways plc (TRAN) . . . . . . . 18,800 123
British American Tobacco plc * (FOOD) . . 18,600 105
British Land Co. plc (REAL) . . . . . . . 7,200 48
British Sky Broadcast plc (MEDI) . . . . 19,900 321
British Telecommunications plc (TELS) . . 60,500 1,466
BTR Siebe plc (DIOP) . . . . . . . . . . 23,385 124
Burmah Castrol plc (OILS) . . . . . . . . 7,250 128
Cadbury Schweppes plc (FOOD) . . . . . . 26,600 160
Carlton Communications plc (MEDI) . . . . 16,300 159
Centrica plc * (UTIG) . . . . . . . . . 58,900 171
CGU plc (INSU) . . . . . . . . . . . . . 9,300 150
Diageo plc (FOOD) . . . . . . . . . . . . 35,700 285
EMI Group plc (LEIS) . . . . . . . . . . 12,400 122
GKN plc (PART) . . . . . . . . . . . . . 9,200 151
Glaxo Wellcome plc - ADR (HEAL) . . . . . 32,110 910
Granada Group plc (DIOP) . . . . . . . . 23,400 236
Great Universital Stores plc (RETS) . . . 11,800 69
Halifax Group plc (LEND) . . . . . . . . 14,100 154
HSBC Holdings plc (BANK) . . . . . . . . 68,800 953
HSBC Holdings plc (BANK) . . . . . . . . 24,900 349
Imperial Chemical Industries plc (CHEM) . 1,700 18
J Sainsbury plc (RETF) . . . . . . . . . 24,100 136
Kingfisher plc (RETS) . . . . . . . . . . 15,900 176
Ladbroke Group plc (LEIS) . . . . . . . . 20,700 67
Land Securities plc (REAL) . . . . . . . 8,400 94
Legal & General Group plc (INSU) . . . . 62,800 171
Lloyds TSB Group plc (BANK) . . . . . . . 51,200 636
Marconi plc (TELE) . . . . . . . . . . . 28,600 504
Marks & Spencer plc (RETS) . . . . . . . 19,900 95
National Grid Group plc (UTIE) . . . . . 22,500 171
National Power plc (UTIE) . . . . . . . . 16,500 95
</TABLE>
77
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
United Kingdom - Continued
Pearson plc (MEDP) . . . . . . . . . . . 8,100 $ 264
Peninsular & Oriental Steam Navigation
Co. (TRAN) . . . . . . . . . . . . . . . 10,300 171
Prudential Corp. (INSU) . . . . . . . . 20,900 408
Railtrack Group plc (TRAN) . . . . . . . 6,700 113
Rank Group plc (DIOP) . . . . . . . . . . 16,000 52
Reed International plc (MEDP) . . . . . . 15,400 116
Reuters Group plc (BUSI) . . . . . . . . 15,900 221
Rio Tinto plc - Reg. (DIOP) . . . . . . . 11,900 286
Royal Bank of Scotland Group (BANK) . . . 11,500 204
Schroders (BANK) . . . . . . . . . . . . 4,050 82
Scottish Power plc (UTIE) . . . . . . . . 17,100 130
SmithKline Beecham plc (HEAL) . . . . . . 51,500 653
Tesco plc (RETF) . . . . . . . . . . . . 67,200 204
Unilever plc (CNSU) . . . . . . . . . . . 26,703 196
United Utilities plc (AGRI) . . . . . . . 10,400 107
Vodafone Airtouch plc (TELS) . . . . . . 254,500 1,269
--------
17,809
--------
TOTAL COMMON STOCK- 93.7% 228,585
--------
PREFERRED STOCK
Australia - 0.1%
News Corp., Ltd. (MEDI) . . . . . . . . . 34,800 298
Brazil - 0.8%
Aracruz Celulose SA - Cl. B (PAPR) . . . 38,000 92
Banco Bradesco SA (BANK) . . . . . . . . 15,494,000 121
Banco Itau SA (BANK) . . . . . . . . . . 1,240,000 106
Centrais Electricas Brasileires SA - Cl.
B (UTIE) . . . . . . . . . . . . . . . . 3,137,000 75
Companhia Cervejaria Brahma (FOOD) . . . 101,000 74
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) . . . . . . . . . . . . . . 3,565,000 80
Companhia Vale do Rio Doce - Cl. A *
(META) . . . . . . . . . . . . . . . . . 8,000 221
Embratel Participacoes SA (UTIT) . . . . 6,417,000 165
Petroleo Brasileiro SA - Petrobras (OILS) 1,471,000 375
Tele Centro Sul Participacoes SA (UTIT) 6,634,000 121
Tele Norte Leste Participacoes SA (UTIT) 5,909,000 159
Telesp Celular Participacoes SA * (TELS) 6,756,000 120
Telesp Participacoes SA * (UTIT) . . . . 5,862,000 142
--------
1,851
Germany - 0.5%
Dyckerhoff AG (CONS) . . . . . . . . . . 2,600 80
RWE AG (OILX) . . . . . . . . . . . . . . 5,470 169
SAP AG - Vorzug (SOFT) . . . . . . . . . 1,490 897
Volkswagen AG (AUTO) . . . . . . . . . . 3,800 122
--------
1,268
--------
TOTAL PREFERRED STOCK- 1.4% 3,417
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
United Kingdom - 0.0%
BG Transco Holdings plc (UTIG)
4.187% due 12/14/22 . . . . . . . . . . $ 5 $ 8
7.0% due 12/16/24 . . . . . . . . . . . 5 8
7.057% due 12/14/09 . . . . . . . . . . 5 8
British Aerospace plc - Bonds (AERO)
7.45% due 11/29/03 . . . . . . . . . . . 4 6
--------
TOTAL PUBLICLY-TRADED BONDS- 0.0% 30
--------
WARRANTS
France - 0.0%
AXA-CTF de Valeur Garant (INSU)
expires 07/31/00 (Cost $17) . . . . . . 172
Mexico - 0.0%
Cemex SA de CV (CONS)
expires 12/13/02 (Cost $1) . . . . . . . 2,000 2
United States - 0.9%
Morgan Stanley Capital Llc (FINL)
expires 01/01/80 (Cost $2,241) . . . . . 16,200 2,345
--------
TOTAL WARRANTS- 0.9% 2,347
--------
RIGHTS - 0.0%
South Korea - 0.0%
Samsung Fire & Marine Insurance (INSU) 364 1
SHORT-TERM INVESTMENTS
Investment in joint trading account
(Note B)
5.242% due 01/03/00 . . . . . . . . . . 8,414 8,415
U.S. Treasury Bills
5.18% due 03/16/00 # . . . . . . . . . . 565 559
--------
TOTAL SHORT-TERM INVESTMENTS- 3.7% 8,974
------------ --------
TOTAL INVESTMENTS- 99.7% 243,354
Cash and Receivables, less payables- 0.3% 663
------------ --------
NET ASSETS- 100.0% $244,017
============ ========
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt
GDR - Global Depository Receipt
# Securities, or a portion thereof, with an aggregate market value of $537 have
been segregated to collateralize financial futures contracts.
See notes to financial statements.
78
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Industry Market % of
Industry Abbreviation Value Long-Term
(000's) Investments
<S> <C> <C> <C>
Banks............................. BANK $29,532 12.6%
Telecommunication Services........ TELS 22,708 9.7%
Electronic Products and
Services........................ ETRN 20,334 8.7%
Telephone......................... UTIT 12,197 5.2%
Diversified Operations............ DIOP 12,095 5.2%
Insurance......................... INSU 12,040 5.2%
Automobile........................ AUTO 10,569 4.5%
Health Care Products.............. HEAL 8,654 3.7%
Food, Beverage and Tobacco........ FOOD 6,394 2.7%
Telecommunication Equipment....... TELE 6,355 2.7%
Electric Power.................... UTIE 5,764 2.5%
Computer Software and Services.... SOFT 5,763 2.5%
Machinery......................... MACH 5,678 2.4%
Chemicals......................... CHEM 5,611 2.4%
Retail - Department Stores........ RETS 5,470 2.3%
Construction...................... CONS 5,377 2.3%
Oil and Natural Gas Exploration
and Production.................. OILX 5,342 2.3%
Transportation Services........... TRAN 4,798 2.0%
Financial Services................ FINL 4,206 1.8%
Oil............................... OILS 4,066 1.7%
Commercial Services............... COMM 3,643 1.6%
Electrical Equipment.............. ELEQ 3,527 1.5%
Media - TV / Radio................ MEDI 3,283 1.4%
Retail - Food..................... RETF 3,040 1.3%
Leisure and Recreation............ LEIS 2,924 1.2%
Oil - Equipment and Services...... OILE 2,616 1.1%
Brokerage and Investment
Management...................... FUND 2,415 1.0%
Cosmetics and Personal Care
Products........................ HNBA 2,037 0.9%
Paper and Forest Products......... PAPR 1,601 0.7%
Computer Equipment................ COMP 1,394 0.6%
Auto and Truck Parts.............. PART 1,313 0.6%
Steel............................. STEE 1,237 0.5%
Real Estate Operations............ REAL 1,201 0.5%
Shoe and Apparel Manufacturing.... APPA 1,187 0.5%
Personal and Commercial Lending... LEND 1,106 0.5%
Natural Gas Distribution.......... UTIG 1,105 0.5%
Metals and Mining................. META 1103 0.5%
Consumer - Miscellaneous.......... CNSU 1,037 0.4%
Engineering and Construction...... ENGI 1,007 0.4%
Real Estate Development........... READ 1,005 0.4%
Media - Publishing................ MEDP 920 0.4%
Household Appliances /
Furnishings..................... APPL 579 0.2%
Precious Metals/Gems/Stones....... PMET 534 0.2%
Containers........................ CONT 352 0.2%
Real Estate Investment Trust...... REIT 260 0.1%
Business Services................. BUSI 221 0.1%
Aerospace and Defense............. AERO 218 0.1%
Metal Product and Fabrication..... METP 145 0.1%
Housing........................... HOUS 126 0.1%
Agricultural Operations........... AGRI 107 0.0%
Retail - Drug Stores.............. RETD 105 0.0%
Pollution Control................. POLL 79 0.0%
-------- -------
$234,380 100.0%
======== =======
</TABLE>
79
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 4.5%
Broken Hill Proprietary Co., Ltd. (DIOP) . . 16,700 $ 219
Cable & Wireless Optus, Ltd. * (TELS) . . . . 105,135 351
WMC, Ltd. (DIOP) . . . . . . . . . . . . . . 41,000 226
Woodside Petroleum, Ltd. (OILX) . . . . . . . 27,300 202
--------
998
Brazil - 1.4%
Aracruz Celulose SA - ADR (PAPR) . . . . . . 5,200 136
Companhia Vale do Rio Doce - ADR (META) . . . 6,300 176
--------
312
Canada - 3.4%
Barrick Gold Corp. (PMET) . . . . . . . . . . 11,100 196
BCE, Inc. (TELS) . . . . . . . . . . . . . . 2,100 191
Canadian National Railway Co. (TRAN) . . . . 4,600 121
MANULIFE Financial Corp. (INSU) . . . . . . . 17,200 220
Noranda, Inc. (META) . . . . . . . . . . . . 2,400 32
--------
760
Finland - 1.2%
Sonera Oyj (TELS) . . . . . . . . . . . . . . 4,100 281
France - 4.3%
Aventis SA * (HEAL) . . . . . . . . . . . . . 4,623 268
Canal Plus (MEDI) . . . . . . . . . . . . . . 2,409 351
Compagnie de St. Gobain (CONS) . . . . . . . 1,150 216
EUROTUNNEL (TRAN) . . . . . . . . . . . . . . 113,460 134
--------
969
Germany - 7.4%
Allianz AG - Reg. (INSU) . . . . . . . . . . 220 74
BASF AG (CHEM) . . . . . . . . . . . . . . . 4,578 235
Bayer AG (CHEM) . . . . . . . . . . . . . . . 5,363 254
Bayerische Vereinsbank AG (BANK) . . . . . . 2,374 162
Heidelberger Druckmaschinen AG (MACH) . . . . 648 34
Muenchener Rueckversicherungs-Gesellschaft
AG - Reg. (INSU) . . . . . . . . . . . . . . 752 191
Schering AG (HEAL) . . . . . . . . . . . . . 1,263 153
Siemens AG (DIOP) . . . . . . . . . . . . . . 2,101 267
Thyssen Krupp AG (CONS) . . . . . . . . . . . 2,017 62
VEBA AG (DIOP) . . . . . . . . . . . . . . . 2,658 129
Viag AG (DIOP) . . . . . . . . . . . . . . . 4,627 85
--------
1,646
Hong Kong - 0.5%
Citic Pacific, Ltd. (DIOP) . . . . . . . . . 29,000 109
New World China Ltd. * (READ) . . . . . . . . 75
--------
109
Japan - 19.1%
Asahi Chemical Industry Co., Ltd. (CHEM) . . 17,000 87
Chugai Pharmaceutical Co., Ltd. (HEAL) . . . 12,000 130
Daiei, Inc. (RETS) . . . . . . . . . . . . . 3,000 12
Daiwa Securities Group, Inc. (FUND) . . . . . 31,000 485
DDI Corp. (UTIT) . . . . . . . . . . . . . . 15 206
East Japan Railway Co. (TRAN) . . . . . . . . 32 173
Fuji Bank, Ltd. (BANK) . . . . . . . . . . . 12,000 117
Fujitsu, Ltd. (ELEQ) . . . . . . . . . . . . 4,000 182
Matsushita Electric Industrial Co. (ETRN) . . 9,000 249
Mitsubishi Estate Co., Ltd. (REAL) . . . . . 13,000 127
Mitsui Fudosan Co., Ltd. (REAL) . . . . . . . 10,000 68
NEC Corp. (COMP) . . . . . . . . . . . . . . 11,000 262
Nikko Securities Co., Ltd. (FUND) . . . . . . 4,000 51
Nippon Telegraph & Telephone Corp. (UTIT) . . 11 188
Nissan Motor Acceptance Corp. (FINL) . . . . 13,000 51
Nomura Securities Co., Ltd. (FUND) . . . . . 3,000 54
NTT Mobile Communications Network, Inc.
(TELS) . . . . . . . . . . . . . . . . . . . 5 192
Sakura Bank, Ltd. (BANK) . . . . . . . . . . 29,000 168
Sharp Corp. (ETRN) . . . . . . . . . . . . . 17,000 435
Sony Corp. (ETRN) . . . . . . . . . . . . . . 1,600 475
Sumitomo Metal Mining Co. (PMET) . . . . . . 12,000 27
Teijin, Ltd. (APPA) . . . . . . . . . . . . . 21,000 77
Toray Industries, Inc. (APPA) . . . . . . . . 19,000 74
Toshiba Corp. (ETRN) . . . . . . . . . . . . 26,000 198
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) . 5,000 175
--------
4,263
Netherlands - 1.5%
STMicroelectronics * (ETRN) . . . . . . . . . 1,075 165
United Pan - Europe Communications NV *
(TELS) . . . . . . . . . . . . . . . . . . . 1,320 169
--------
334
Singapore - 0.6%
DBS Group Holdings, Ltd. (BANK) . . . . . . . 2,000 131
South Africa - 1.5%
Anglo American Platinum Corp., Ltd. (PMET) . 7,100 216
Impala Platinum Holdings, Ltd. - ADR
(META) . . . . . . . . . . . . . . . . . . . 2,900 117
--------
333
South Korea - 0.6%
Samsung Electronics (ETRN) . . . . . . . . . 560 131
Switzerland - 3.7%
Clariant AG - Reg. (CHEM) . . . . . . . . . . 324 154
Novartis AG - Reg. (HEAL) . . . . . . . . . . 103 151
Roche Holding AG (HEAL) . . . . . . . . . . . 16 190
Swisscom AG - Reg. (UTIT) . . . . . . . . . . 478 193
UBS AG - Reg. (BANK) . . . . . . . . . . . . 498 135
--------
823
United Kingdom - 14.9%
BOC Group plc (CHEM) . . . . . . . . . . . . 15,129 326
British Aerospace plc (AERO) . . . . . . . . 7,763 51
British Telecommunications plc (TELS) . . . . 7,595 184
Carlton Communications plc (MEDI) . . . . . . 28,628 279
80
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
Enterprise Oil plc (OILX) . . . . . . . . . . 10,390 $ 70
Gallaher Group plc (FOOD) . . . . . . . . . . 14,605 61
LASMO plc (OILX) . . . . . . . . . . . . . . 9,622 19
Marconi plc (TELE) . . . . . . . . . . . . . 13,813 244
National Grid Group plc (UTIE) . . . . . . . 22,756 173
National Power plc (UTIE) . . . . . . . . . . 26,078 150
Prudential Corp. (INSU) . . . . . . . . . . . 11,697 228
Railtrack Group plc (TRAN) . . . . . . . . . 8,371 141
Reuters Group plc (BUSI) . . . . . . . . . . 22,147 308
Rio Tinto plc - Reg. (DIOP) . . . . . . . . . 12,381 297
Scottish Power plc (UTIE) . . . . . . . . . . 22,504 171
Shell Transport & Trading Co. plc (OILX) . . 28,603 238
SmithKline Beecham plc (HEAL) . . . . . . . . 13,328 169
Standard Chartered (BANK) . . . . . . . . . . 3,051 49
The Great Universal Stores plc (RETS) . . . . 29,388 171
--------
3,329
United States - 30.4%
Amerada Hess Corp. (OILX) . . . . . . . . . . 2,200 125
America Online, Inc. * (SOFT) . . . . . . . . 1,600 121
AT&T Corp. (UTIT) . . . . . . . . . . . . . . 3,005 153
AT&T Corp. - Liberty Media Group - Cl. A *
(MEDP) . . . . . . . . . . . . . . . . . . . 6,416 364
Biogen, Inc. * (HEAS) . . . . . . . . . . . . 1,300 110
Cinergy Corp. (UTIE) . . . . . . . . . . . . 3,700 89
Cisco Systems, Inc. * (ETRN) . . . . . . . . 500 54
Conoco, Inc. - Cl. A (OILS) . . . . . . . . . 6,800 168
CSX Corp. (TRAN) . . . . . . . . . . . . . . 5,500 173
Duke Energy Co. (UTIE) . . . . . . . . . . . 2,100 105
Electronic Data Systems Corp. (SOFT) . . . . 4,100 274
EMC Corp. * (SOFT) . . . . . . . . . . . . . 500 55
Enron Corp. (UTIG) . . . . . . . . . . . . . 4,600 204
Equity Residential Properties Trust (REIT) . 3,600 154
Exxon Mobil Corp. (OILE) . . . . . . . . . . 2,400 193
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B (PMET) . . . . . . . . . . . . . . . . 700 15
Homestake Mining Co. (PMET) . . . . . . . . . 8,300 65
Immunex Corp. * (HEAL) . . . . . . . . . . . 3,800 416
International Business Machines Corp.
(COMP) . . . . . . . . . . . . . . . . . . . 3,000 324
Lockheed Martin Corp. (AERO) . . . . . . . . 5,400 118
MedImmune, Inc. * (HEAL) . . . . . . . . . . 200 33
Motorola, Inc. (ETRN) . . . . . . . . . . . . 2,000 294
Newmont Mining Corp. (PMET) . . . . . . . . . 7,300 179
Nextel Communications, Inc. * (TELS) . . . . 2,200 227
Northrop Grumman Corp. (AERO) . . . . . . . . 2,700 146
Oracle Corp. * (SOFT) . . . . . . . . . . . . 3,900 437
Parametric Technology Corp. * (SOFT) . . . . 4,600 124
Peco Energy Co. (UTIE) . . . . . . . . . . . 5,200 181
Phillips Petroleum Co. (OILX) . . . . . . . . 3,500 164
SABRE Group Holdings, Inc. * (LEIS) . . . . . 3,800 195
Sterling Commerce, Inc. * (ETRN) . . . . . . 4,100 140
Stillwater Mining Co. * (PMET) . . . . . . . 6,850 218
Sun Microsystems, Inc. * (SOFT) . . . . . . . 5,000 387
U.S. Airways Group, Inc. * (TRAN) . . . . . . 2,400 77
Unocal Corp. (OILX) . . . . . . . . . . . . . 3,600 121
UnumProvident Corp. (INSU) . . . . . . . . . 3,200 103
USEC, Inc. (CONS) . . . . . . . . . . . . . . 16,900 118
USX-US Steel Group, Inc. (STEE) . . . . . . . 6,000 198
Williams Cos., Inc. (UTIG) . . . . . . . . . 5,300 162
--------
6,784
--------
TOTAL COMMON STOCK- 95.0% 21,203
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 4.5%
Investment in joint repurchase agreement with
Scudder Kemper Investments dated 12/31/99,
2.8% due 01/03/00 (Secured by $825 U.S.
Treasury Bonds, 12.375% due 05/15/04, Market
Value $1,020) $ 995 995
------- -------
TOTAL INVESTMENTS- 99.5% 22,198
Cash and Receivables, less payables- 0.5% 113
------- -------
NET ASSETS- 100.0% $22,311
======= =======
* Non-income producing security.
ADR - American Depository Receipt
See notes to financial statements.
81
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
-------------------------------------------------------------------------------
GLOBAL EQUITY PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Electronic Products and Services.. ETRN $2,142 10.1%
Health Care Products.............. HEAL 1,685 7.9%
Telecommunication Services........ TELS 1,595 7.5%
Computer Software and Services.... SOFT 1,398 6.6%
Diversified Operations............ DIOP 1,333 6.3%
Chemicals......................... CHEM 1,057 5.0%
Oil and Natural Gas Exploration
and Production.................. OILX 939 4.4%
Precious Metals/Gems/Stones....... PMET 916 4.3%
Electric Power.................... UTIE 870 4.1%
Transportation Services........... TRAN 817 3.9%
Insurance......................... INSU 815 3.8%
Banks............................. BANK 761 3.6%
Telephone......................... UTIT 740 3.5%
Media - TV / Radio................ MEDI 629 3.0%
Brokerage and Investment
Management...................... FUND 590 2.8%
Computer Equipment................ COMP 586 2.8%
Construction...................... CONS 396 1.9%
Natural Gas Distribution.......... UTIG 366 1.7%
Media - Publishing................ MEDP 364 1.7%
Metals and Mining................. META 325 1.5%
Aerospace and Defense............. AERO 315 1.5%
Business Services................. BUSI 308 1.5%
Telecommunication Equipment....... TELE 244 1.2%
Steel............................. STEE 198 0.9%
Real Estate Operations............ REAL 195 0.9%
Leisure and Recreation............ LEIS 195 0.9%
Oil - Equipment and Services...... OILE 193 0.9%
Retail - Department Stores........ RETS 183 0.9%
Electrical Equipment.............. ELEQ 182 0.9%
Oil............................... OILS 168 0.8%
Real Estate Investment Trust...... REIT 154 0.7%
Shoe and Apparel Manufacturing.... APPA 151 0.7%
Paper and Forest Products......... PAPR 137 0.6%
Health Care Services.............. HEAS 110 0.5%
Food, Beverage and Tobacco........ FOOD 61 0.3%
Financial Services................ FINL 51 0.2%
Machinery......................... MACH 34 0.2%
------- -------
$21,203 100.0%
======= =======
82
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.9%
AMP, Ltd. * (INSU) . . . . . . . . . . . . 1,100 $ 12
Brambles Industries, Ltd. (DIOP) . . . . . 504 14
Broken Hill Proprietary Co., Ltd. (DIOP) . 3,025 40
Coles Myer, Ltd. (RETS) . . . . . . . . . 2,100 11
Foster's Brewing Group, Ltd. (FOOD) . . . 5,900 17
Lend Lease Corp. (FINL) . . . . . . . . . 1,429 20
National Australia Bank, Ltd. (BANK) . . . 1,858 28
News Corp., Ltd. (MEDI) . . . . . . . . . 5,777 56
Pioneer International, Ltd. (CONS) . . . . 1,236 4
Rio Tinto, Ltd. (PMET) . . . . . . . . . . 1,380 30
TABCORP Holdings, Ltd. (LEIS) . . . . . . 2,094 14
Telstra Corp., Ltd. (TELS) . . . . . . . . 12,000 65
Westpac Banking Corp., Ltd. (BANK) . . . . 2,139 15
WMC, Ltd. (DIOP) . . . . . . . . . . . . . 2,500 14
Woodside Petroleum, Ltd. (OILX) . . . . . 2,100 15
Woolworth's, Ltd. (RETS) . . . . . . . . . 2,989 10
-------
365
Belgium - 0.7%
Dexia * (LEND) . . . . . . . . . . . . . . 517 85
Dexia - VVPR * (LEND) . . . . . . . . . .
517
-------
85
Denmark - 0.4%
Iss International Service System A/S - Cl.
B (COMM) . . . . . . . . . . . . . . . . 807 54
Finland - 2.9%
Merita plc * (BANK) . . . . . . . . . . . 4,194 25
Nokia Oyj (TELE) . . . . . . . . . . . . . 1,844 334
-------
359
France - 9.6%
Accor SA (LEIS) . . . . . . . . . . . . . 820 40
Air Liquide (CHEM) . . . . . . . . . . . . 518 87
Alstom (MACH) . . . . . . . . . . . . . . 2,102 70
AXA SA (INSU) . . . . . . . . . . . . . . 640 89
Carrefour SA (RETF) . . . . . . . . . . . 246 45
Michelin (PART) . . . . . . . . . . . . . 1,425 56
Rhodia SA (CHEM) . . . . . . . . . . . . . 5,032 114
Rhone-Poulenc SA (BANK) . . . . . . . . . 3,037 177
Societe Generale de Paris (BANK) . . . . . 542 126
Total Fina SA - Cl. B (OILX) . . . . . . . 1,626 217
Vivendi (DIOP) . . . . . . . . . . . . . . 1,840 166
-------
1,187
Germany - 6.9%
Allianz AG - Reg. (INSU) . . . . . . . . . 245 82
BASF AG (CHEM) . . . . . . . . . . . . . . 1,530 79
Bayerische Vereinsbank AG (BANK) . . . . . 564 39
Deutsche Bank AG (BANK) . . . . . . . . . 352 30
Deutsche Telekom AG (TELS) . . . . . . . . 1,127 80
Epcos AG * (ETRN) . . . . . . . . . . . . 1,605 120
Mannesmann AG (MACH) . . . . . . . . . . . 935 226
Muenchener Rueckversicherungs-Gesellschaft
AG - Reg. (INSU) . . . . . . . . . . . . 125 $ 32
Preussag AG (DIOP) . . . . . . . . . . . . 1,283 71
Siemens AG (DIOP) . . . . . . . . . . . . 734 93
-------
852
Hong Kong - 2.8%
Cheung Kong (Holdings), Ltd. (READ) . . . 3,000 38
China Telecom (Hong Kong), Ltd. (TELS) . . 9,000 56
CLP Holdings, Ltd. (UTIE) . . . . . . . . 3,000 14
Giordano International, Ltd. (RETS) . . . 20,000 21
Hang Seng Bank, Ltd. (BANK) . . . . . . . 3,200 36
Hong Kong & China Gas Co., Ltd. (UTIG) . . 11,000 15
Hong Kong Telecommunications, Ltd.
(TELS). . . . . . . . . . . . . . . . . . 12,800 37
Hutchison Whampoa, Ltd. (COMM) . . . . . . 8,000 116
New World Development Co., Ltd.
(READ). . . . . . . . . . . . . . . . . . 7,000 16
-------
349
Ireland - 0.4%
Bank of Ireland (BANK) . . . . . . . . . . 6,820 54
Italy - 2.4%
Banca Di Roma (BANK) . . . . . . . . . . . 23,751 31
Credito Italiano SpA (BANK) . . . . . . . 8,604 42
ENI SpA (OILS) . . . . . . . . . . . . . . 8,935 49
Istituto Bancario San Paolo di Torino
(BANK). . . . . . . . . . . . . . . . . . 4,300 58
Seat-Pagine Gialle SpA (MEDP) . . . . . . 31,347 69
Telecom Italia SpA * (TELS) . . . . . . . 3,739 53
-------
302
Japan - 23.3%
ADERANS Co., Ltd. (HNBA) . . . . . . . . . 1,500 56
Advantest (ETRN) . . . . . . . . . . . . . 700 185
Asahi Chemical Industry Co., Ltd.
(CHEM). . . . . . . . . . . . . . . . . . 13,000 67
Asahi Glass Co., Ltd. (APPL) . . . . . . . 8,000 62
Bank of Tokyo-Mitsubishi (BANK) . . . . . 8,000 111
Bridgestone Corp. (PART) . . . . . . . . . 2,000 44
Canon, Inc. (COMM) . . . . . . . . . . . . 1,000 40
Chiba Bank, Ltd. (BANK) . . . . . . . . . 14,000 78
Circle K Japan Co., Ltd. (RETF) . . . . . 3,100 127
Daiwa Securities Co., Ltd. (FUND) . . . . 3,000 47
Fanuc, Ltd. (ELEQ) . . . . . . . . . . . . 500 64
Fuji Bank, Ltd. (BANK) . . . . . . . . . . 6,000 58
Fuji Photo Film (LEIS) . . . . . . . . . . 2,000 73
Fujitsu, Ltd. (ELEQ) . . . . . . . . . . . 2,000 91
Honda Motor Co. (AUTO) . . . . . . . . . . 1,000 37
KAO Corp. (HNBA) . . . . . . . . . . . . . 3,000 86
Kirin Brewery Co. (FOOD) . . . . . . . . . 5,000 53
Konami Co., Ltd. (COMP) . . . . . . . . . 300 54
Mitsui Marine & Fire Insurance Co., Ltd.
(INSU). . . . . . . . . . . . . . . . . . 17,000 101
83
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Nintendo Corp., Ltd. (LEIS) . . . . . . . 400 $ 66
Nippon Telegraph & Telephone Corp.
(UTIT). . . . . . . . . . . . . . . . . . 12 205
NTT Mobile Communications Network,
Inc. (TELS) . . . . . . . . . . . . . . . 3 115
Ricoh Co., Ltd. (ETRN) . . . . . . . . . . 5,000 94
Rohm Co., Ltd. (ETRN) . . . . . . . . . . 500 205
Shin-Etsu Chemical Co. (CHEM) . . . . . . 3,000 129
SMC Corp. (MACH) . . . . . . . . . . . . . 500 111
Takefuji Corp. (LEND) . . . . . . . . . . 900 113
TDK Corp. (COMP) . . . . . . . . . . . . . 1,000 138
Terumo Corp. (HEAL) . . . . . . . . . . . 2,000 53
Tokyo Electric Power (UTIE) . . . . . . . 2,000 54
Toppan Forms Co., Ltd. (COMM) . . . . . . 1,900 51
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL). . . . . . . . . . . . . . . . . . 3,000 105
Yoshinoya D&C Co., Ltd. (RETF) . . . . . . 1 18
-------
2,891
Netherlands - 9.6%
Aegon NV (INSU) . . . . . . . . . . . . . 465 45
Equant NV * (COMP) . . . . . . . . . . . . 693 78
Fortis (NL) NV (INSU) . . . . . . . . . . 2,117 76
Getronics NV (COMP) . . . . . . . . . . . 1,640 131
ING Groep NV (BANK) . . . . . . . . . . . 1,888 114
Koninklijke (Royal) Philips Electronics
NV (ETRN) . . . . . . . . . . . . . . . . 1,316 179
KPN NV (UTIT) . . . . . . . . . . . . . . 1,667 163
LIBERTEL NV (TELS) . . . . . . . . . . . . 2,719 71
STMicroelectronics * (ETRN) . . . . . . . 573 88
TNT Post Group NV (TRAN) . . . . . . . . . 1,258 36
VNU NV (MEDP) . . . . . . . . . . . . . . 4,115 217
-------
1,198
New Zealand - 0.1%
Telecom Corp. of New Zealand, Ltd.
(TELS). . . . . . . . . . . . . . . . . . 2,900 14
Singapore - 1.0%
Chartered Semiconductor Manufacturing *
(ETRN). . . . . . . . . . . . . . . . . . 2,000 11
City Developments, Ltd. (READ) . . . . . . 1,000 6
DBS Group Holdings, Ltd. (BANK) . . . . . 3,000 49
First Capital Corp., Ltd. (READ) . . . . . 5,000 7
SINGAPORE AIRLINES (TRAN) . . . . . . . . 1,000 11
Singapore Press Holdings, Ltd. (MEDP) . . 1,000 22
Singapore Technology Engineering, Ltd.
(ENGI). . . . . . . . . . . . . . . . . . 9,000 14
Singapore Telecommunications, Ltd.
(TELS). . . . . . . . . . . . . . . . . . 5,000 10
-------
130
Spain - 4.4%
Acerinox SA (STEE) . . . . . . . . . . . . 1,772 71
Altadis * (FOOD) . . . . . . . . . . . . . 5,358 76
Banco Santander Central Hispano SA
(BANK). . . . . . . . . . . . . . . . . . 7,421 84
Endesa SA (UTIE) . . . . . . . . . . . . . 3,603 72
Telefonica SA (UTIT) . . . . . . . . . . . 9,692 242
-------
545
Sweden - 4.1%
Nordbanken Holding (BANK) . . . . . . . . 10,110 59
Securitas AB - B Shares (COMM) . . . . . . 8,546 155
Skandia Forsakrings AB (INSU) . . . . . . 3,524 107
Telefonaktiebolaget LM Ericsson - B
Shares (TELE) . . . . . . . . . . . . . . 2,848 183
-------
504
Switzerland - 3.8%
Nestle SA (FOOD) . . . . . . . . . . . . . 43 79
Novartis AG (HEAL) . . . . . . . . . . . . 77 113
Roche Holding AG (HEAL) . . . . . . . . . 10 119
Schweizerische Rueckversicherungs-
Gesellschaft (INSU) . . . . . . . . . . . 16 33
UBS AG - Reg. (BANK) . . . . . . . . . . . 472 127
-------
471
United Kingdom - 19.1%
Allied Zurich AG * (INSU) . . . . . . . . 9,808 116
AstraZeneca Group plc (HEAL) . . . . . . . 2,028 84
Barclays Bank (BANK) . . . . . . . . . . . 3,520 101
BP Amoco plc (OILE) . . . . . . . . . . . 14,628 148
British Aerospace plc (AERO) . . . . . . . 6,994 46
British Telecommunications plc (TELS) . . 10,616 257
Carlton Communications plc (MEDI) . . . . 2,252 22
COLT Telecom Group plc * (TELS) . . . . . 1,050 54
Diageo plc (FOOD) . . . . . . . . . . . . 7,310 58
Energis plc * (TELS) . . . . . . . . . . . 955 46
Glaxo Wellcome plc - ADR (HEAL) . . . . . 7,013 199
HSBC Holdings plc (BANK) . . . . . . . . . 8,803 122
Lloyds TSB Group plc (BANK) . . . . . . . 6,345 79
Marconi plc (TELE) . . . . . . . . . . . . 6,555 116
Misys plc (COMP) . . . . . . . . . . . . . 4,599 71
National Westminster Bank plc (BANK) . . . 4,238 91
Reckitt & Colman plc (HNBA) . . . . . . . 10,575 100
Reuters Group plc (BUSI) . . . . . . . . . 13,061 181
Shell Transport & Trading Co. plc (OILX) . 11,394 95
SmithKline Beecham plc (HEAL) . . . . . . 3,647 46
Stagecoach Holdings plc (TRAN) . . . . . . 17,805 46
Thus plc * (TELS) . . . . . . . . . . . . 8,690 55
Unilever plc (CNSU) . . . . . . . . . . . 7,734 57
Vodafone Group plc (TELS) . . . . . . . . 37,561 187
-------
2,377
-------
TOTAL COMMON STOCK- 94.4% 11,737
84
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
PREFERRED STOCK - 1.1%
Germany - 1.1%
SAP AG - Vorzug ) . . . . . . . . . . . . 215 $ 129
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.4%
Investment in joint repurchase agreement
with Goldman Sachs & Co. dated 12/31/99,
3.159% due 01/03/00 (Secured by various
U.S. Treasury obligations and U.S.
Government Agency Bonds) . . . . . . . . $ 300 300
------- --------
TOTAL INVESTMENTS- 97.9% 12,166
Cash and Receivables, less payables- 2.1% 264
------- --------
NET ASSETS- 100.0% $ 12,430
======= ========
* Non-income producing security.
ADR - American Depository Receipts
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Banks.............................. BANK $1,735 14.6%
Telecommunication Services......... TELS 1,101 9.3%
Electronic Products and Services... ETRN 883 7.4%
Health Care Products............... HEAL 719 6.1%
Insurance.......................... INSU 692 5.8%
Telecommunication Equipment........ TELE 633 5.3%
Telephone.......................... UTIT 610 5.1%
Chemicals.......................... CHEM 475 4.0%
Computer Equipment................. COMP 472 4.0%
Commercial Services................ COMM 416 3.5%
Machinery.......................... MACH 406 3.4%
Diversified Operations............. DIOP 399 3.4%
Oil and Natural Gas Exploration
and Production................... OILX 327 2.8%
Media - Publishing................. MEDP 307 2.6%
Food, Beverage and Tobacco......... FOOD 283 2.4%
Cosmetics and Personal Care
Products......................... HNBA 242 2.0%
Personal and Commercial
Lending.......................... LEND 198 1.7%
Leisure and Recreation............. LEIS 193 1.6%
Retail - Food...................... RETF 190 1.6%
Business Services.................. BUSI 182 1.5%
Electrical Equipment............... ELEQ 155 1.3%
Oil - Equipment and Services....... OILE 148 1.2%
Electric Power..................... UTIE 139 1.2%
Computer Software and Services..... SOFT 130 1.1%
Auto and Truck Parts............... PART 100 0.8%
Transportation Services............ TRAN 93 0.8%
Media - TV / Radio................. MEDI 78 0.7%
Steel.............................. STEE 71 0.6%
Real Estate Development............ READ 66 0.6%
Household Appliances /
Furnishings...................... APPL 62 0.5%
Consumer - Miscellaneous........... CNSU 57 0.5%
Oil................................ OILS 49 0.4%
Brokerage and Investment
Management....................... FUND 47 0.4%
Aerospace and Defense.............. AERO 46 0.4%
Retail - Department Stores......... RETS 42 0.4%
Automobile......................... AUTO 37 0.3%
Precious Metals/Gems/Stones........ PMET 30 0.3%
Financial Services................. FINL 20 0.2%
Natural Gas Distribution........... UTIG 15 0.1%
Engineering and Construction....... ENGI 14 0.1%
Construction....................... CONS 4 0.0%
------- -------
$11,866 100.0%
======= =======
85
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Auto and Truck Parts - 0.8%
CSK Auto Corp. . . . . . . . . . . . . . . . 34,800 $ 609
O'Reilly Automotive, Inc. * . . . . . . . . . 38,800 834
--------
1,443
Banks - 0.6%
Greater Bay Bancorp . . . . . . . . . . . . . 25,000 1,072
Brokerage and Investment Management - 1.2%
Affiliated Managers Group, Inc. * . . . . . . 19,900 805
Charles River Associates, Inc. . . . . . . . 30,400 1,018
Raymond James Financial, Inc. . . . . . . . . 19,900 372
--------
2,195
Business Services - 2.8%
Corporate Executive Board Co. * . . . . . . . 22,600 1,263
Forrester Research, Inc. * . . . . . . . . . 25,600 1,763
Interim Services, Inc. . . . . . . . . . . . 44,500 1,101
Management Network Group, Inc. * . . . . . . 3,300 108
On Assignment, Inc. * . . . . . . . . . . . . 27,700 828
--------
5,063
Commercial Services - 4.1%
Dendrite International, Inc. * . . . . . . . 28,550 967
Digimarc Corp. * . . . . . . . . . . . . . . 1,250 62
ITT Educational Services, Inc. . . . . . . . 34,400 531
Jupiter Communications, Inc. . . . . . . . . 31,400 950
META Group, Inc. * . . . . . . . . . . . . . 55,450 1,054
Modem Media Poppe Tyson, Inc. * . . . . . . . 17,900 1,260
Official Payments Corp. * . . . . . . . . . . 23,500 1,222
Profit Recovery Group International, Inc. * . 15,050 400
Quanta Services, Inc. * . . . . . . . . . . . 31,900 901
--------
7,347
Computer Equipment - 3.9%
Immersion Corp. * . . . . . . . . . . . . . . 26,500 1,017
Maxtor Corp. * . . . . . . . . . . . . . . . 111,900 811
National Computer Systems, Inc. * . . . . . . 27,100 1,020
Networking Products * . . . . . . . . . . . . 5,600 370
Predictive Systems, Inc. * . . . . . . . . . 17,150 1,123
PRI Automation, Inc. * . . . . . . . . . . . 17,700 1,188
Quantum Corp. - Hard Disk Drive * . . . . . . 73,600 511
Tech Data Corp. * . . . . . . . . . . . . . . 13,200 358
Visual Networks, Inc. * . . . . . . . . . . . 7,500 594
--------
6,992
Computer Software and Services - 27.7%
24/7 Media, Inc. . . . . . . . . . . . . . . 13,000 731
Accrue Software, Inc. * . . . . . . . . . . . 28,000 1,516
Advent Software, Inc. * . . . . . . . . . . . 12,250 789
Aspect Development, Inc. * . . . . . . . . . 16,500 1,130
Aspen Technologies, Inc. * . . . . . . . . . 73,200 1,935
Be Free, Inc. * . . . . . . . . . . . . . . . 25,500 1,833
BindView Development Corp. . . . . . . . . . 37,600 1,868
Broadbase Software, Inc. * . . . . . . . . . 15,800 1,778
BSquare Corp. * . . . . . . . . . . . . . . . 19,300 809
C-bridge Internet Solutions, Inc. * . . . . . 200 10
Clarus Corp. * . . . . . . . . . . . . . . . 24,500 1,617
Cognizant Technology Solutions Corp. . . . . 19,100 2,088
Commtouch Software, Ltd. * . . . . . . . . . 32,400 1,574
Concord Communications, Inc. * . . . . . . . 18,100 803
Data Return Corp. * . . . . . . . . . . . . . 39,400 2,108
Deltathree.com, Inc. - Cl. A * . . . . . . . 12,400 319
Digex, Inc. * . . . . . . . . . . . . . . . . 22,200 1,526
Digital Impact, Inc. * . . . . . . . . . . . 300 15
Diversinet Corp. * . . . . . . . . . . . . . 64,600 1,421
Factset Research Systems, Inc. . . . . . . . 13,200 1,051
Fundtech, Ltd. * . . . . . . . . . . . . . . 33,400 685
iManage, Inc. * . . . . . . . . . . . . . . . 22,700 729
Interwoven, Inc. * . . . . . . . . . . . . . 4,100 499
Intranet Solutions, Inc. * . . . . . . . . . 27,600 1,021
JDA Software Group, Inc. * . . . . . . . . . 48,000 786
Level 8 Systems, Inc. * . . . . . . . . . . . 24,600 850
Lifeminders.com, Inc. * . . . . . . . . . . . 19,250 1,112
Media Metrix, Inc. * . . . . . . . . . . . . 25,800 922
Mediaplex, Inc. * . . . . . . . . . . . . . . 23,100 1,450
Micromuse, Inc. * . . . . . . . . . . . . . . 10,000 1,700
Multex.com, Inc. * . . . . . . . . . . . . . 32,800 1,234
National Instruments Corp. * . . . . . . . . 21,050 805
Net Perceptions, Inc. * . . . . . . . . . . . 30,200 1,268
Network Event Theater, Inc. * . . . . . . . . 50,300 1,497
NextCard, Inc. * . . . . . . . . . . . . . . 25,000 722
Packeteer, Inc. * . . . . . . . . . . . . . . 17,900 1,271
pcOrder.com, Inc. * . . . . . . . . . . . . . 17,600 898
Prodigy Communications Corp. * . . . . . . . 41,500 804
SCM Microsystems, Inc. * . . . . . . . . . . 14,600 934
Secure Computing Corp. * . . . . . . . . . . 79,600 1,000
SportsLine USA, Inc. * . . . . . . . . . . . 22,700 1,138
VerticalNet, Inc. * . . . . . . . . . . . . . 3,100 508
WebTrends Corp. * . . . . . . . . . . . . . . 14,200 1,150
Whittman-Hart, Inc. * . . . . . . . . . . . . 18,700 1,003
Wind River Systems * . . . . . . . . . . . . 21,550 789
--------
49,696
Consumer - Miscellaneous - 3.1%
Catalina Marketing Corp. * . . . . . . . . . 7,200 833
Cybergold, Inc. * . . . . . . . . . . . . . . 73,100 1,293
NetRatings, Inc. * . . . . . . . . . . . . . 13,000 626
ScanSource, Inc. * . . . . . . . . . . . . . 30,300 1,229
TheStreet.com, Inc. * . . . . . . . . . . . . 36,300 697
Tivo, Inc. * . . . . . . . . . . . . . . . . 26,000 877
--------
5,555
Electrical Equipment - 0.3%
Micrel, Inc. * . . . . . . . . . . . . . . . 9,000 512
Electronic Products and Services - 8.2%
Alpha Industries, Inc. . . . . . . . . . . . 11,300 648
Atmi, Inc. * . . . . . . . . . . . . . . . . 28,200 932
Caliper Technologies Corp. * . . . . . . . . 1,850 123
Credence Systems Corp. * . . . . . . . . . . 15,900 1,375
</TABLE>
86
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Electronic Products and Services - Continued
Cytyc Corp. * . . . . . . . . . . . . . . . . 22,700 $ 1,386
DuPont Photomasks, Inc. * . . . . . . . . . . 19,700 951
Gentex Corp. * . . . . . . . . . . . . . . . 25,900 719
GlobeSpan, Inc. * . . . . . . . . . . . . . . 4,900 319
Imax Corp. * . . . . . . . . . . . . . . . . 49,800 1,363
Metalink, Ltd. * . . . . . . . . . . . . . . 22,800 465
Novellus Systems, Inc. * . . . . . . . . . . 5,600 686
PLX Technology, Inc. * . . . . . . . . . . . 65,400 1,238
QLogic Corp. * . . . . . . . . . . . . . . . 6,200 991
Rudolph Technologies, Inc. * . . . . . . . . 8,000 268
Sage, Inc. * . . . . . . . . . . . . . . . . 29,400 570
Semtech Corp. * . . . . . . . . . . . . . . . 24,600 1,282
Vicor Corp. * . . . . . . . . . . . . . . . . 33,600 1,361
Virata, Corp. * . . . . . . . . . . . . . . . 3,200 96
--------
14,773
Financial Services - 1.0%
Medallion Financial Corp. . . . . . . . . . . 32,200 578
S1 Corp. * . . . . . . . . . . . . . . . . . 5,400 422
Web Street, Inc. * . . . . . . . . . . . . . 70,800 876
--------
1,876
Food, Beverage and Tobacco - 0.9%
American Italian Pasta Co. * . . . . . . . . 28,800 886
Beringer Wine Estates Holdings * . . . . . . 14,900 594
Symyx Technologies, Inc. * . . . . . . . . . 4,800 144
--------
1,624
Health Care Products - 5.5%
Alkermes, Inc. * . . . . . . . . . . . . . . 26,100 1,282
Alpharma, Inc. - Cl. A . . . . . . . . . . . 27,800 855
CV Therapeutics, Inc. * . . . . . . . . . . . 52,300 1,363
Human Genome Sciences, Inc. * . . . . . . . . 6,700 1,022
Interpore International, Inc. * . . . . . . . 142,700 1,124
King Pharmaceuticals, Inc. * . . . . . . . . 21,400 1,200
Pharmacopeia, Inc. * . . . . . . . . . . . . 44,800 1,013
Pharmacyclics, Inc. * . . . . . . . . . . . . 25,500 1,052
Triangle Pharmaceuticals, Inc. * . . . . . . 46,800 600
Tularik, Inc. * . . . . . . . . . . . . . . . 12,100 392
--------
9,903
Health Care Services - 0.5%
Idec Pharmaceuticals Corp. . . . . . . . . . 9,400 924
Household Appliances / Furnishings - 0.3%
Ethan Allen Interiors, Inc. . . . . . . . . . 16,350 524
Housing - 0.5%
Monaco Coach Corp. * . . . . . . . . . . . . 37,500 959
Insurance - 0.5%
InsWeb Corp. * . . . . . . . . . . . . . . . 36,500 933
Leisure and Recreation - 1.1%
Cinar Films, Inc. * . . . . . . . . . . . . . 51,300 1,257
Premier Parks, Inc. * . . . . . . . . . . . . 23,700 684
--------
1,941
Machinery - 0.8%
CVC, Inc. * . . . . . . . . . . . . . . . . . 65,500 630
Terex Corp. * . . . . . . . . . . . . . . . . 28,100 780
--------
1,410
Media - Publishing - 0.4%
Martha Stewart Living Omnimedia, Inc. - Cl.
A *. . . . . . . . . . . . . . . . . . . . . 28,100 674
Media - TV / Radio - 8.8%
Ackerley Group, Inc. . . . . . . . . . . . . 46,500 843
Acme Communications, Inc. * . . . . . . . . . 28,450 946
Citadel Communications Corp. * . . . . . . . 25,200 1,635
Classic Communications, Inc. - Cl. A * . . . 23,200 848
Cumulus Media, Inc. - Cl. A * . . . . . . . . 27,200 1,381
Entercom Communications Corp. * . . . . . . . 12,500 825
Getty Images, Inc. . . . . . . . . . . . . . 34,500 1,686
Hispanic Broadcasting Corp. * . . . . . . . . 3,300 304
Pegasus Communications Corp. * . . . . . . . 20,900 2,043
Radio One, Inc. * . . . . . . . . . . . . . . 15,800 1,454
Radio Unica Corp. * . . . . . . . . . . . . . 36,700 1,060
Westwood One, Inc. * . . . . . . . . . . . . 19,950 1,516
XM Satellite Radio Holdings, Inc. - Cl. A * . 32,950 1,256
--------
15,797
Metals and Mining - 0.9%
Maverick Tube Corp. * . . . . . . . . . . . . 63,200 1,560
Oil - Equipment and Services - 1.4%
Core Laboratories NV * . . . . . . . . . . . 36,300 728
Dril Quip, Inc. * . . . . . . . . . . . . . . 17,900 544
Marine Drilling Companies, Inc. * . . . . . . 53,900 1,209
--------
2,481
Oil and Natural Gas Exploration and Production - 1.3%
Newfield Exploration Co. * . . . . . . . . . 36,000 963
Pride International, Inc. * . . . . . . . . . 42,600 623
Stone Energy Corp. * . . . . . . . . . . . . 19,800 705
--------
2,291
Personal and Commercial Lending - 0.4%
Metris Cos., Inc. . . . . . . . . . . . . . . 22,700 810
Retail - Department Stores - 4.5%
99 Cents Only Stores * . . . . . . . . . . . 38,925 1,489
Chemdex Corp. * . . . . . . . . . . . . . . . 12,800 1,421
Cost Plus, Inc. * . . . . . . . . . . . . . . 33,250 1,184
Insight Enterprises, Inc. * . . . . . . . . . 27,100 1,101
Linens 'N Things, Inc. * . . . . . . . . . . 34,300 1,016
Pacific Sunwear of California, Inc. * . . . . 29,800 950
RoweCom, Inc. * . . . . . . . . . . . . . . . 20,300 921
--------
8,082
</TABLE>
87
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Retail - Drug Stores - 0.7%
Duane Reade, Inc. * . . . . . . . . . . . . . 42,900 $ 1,182
Retail - Food - 2.2%
Applebee's International, Inc. . . . . . . . 31,100 917
RARE Hospitality International, Inc. * . . . 28,100 608
Whole Foods Market, Inc. * . . . . . . . . . 23,400 1,085
Wild Oats Markets, Inc. * . . . . . . . . . . 57,400 1,274
--------
3,884
Shoe and Apparel Manufacturing - 0.3%
Cutter & Buck, Inc. * . . . . . . . . . . . . 37,600 569
Steel - 0.7%
Lone Star Technologies, Inc. * . . . . . . . 44,500 1,241
Telecommunication Equipment - 4.7%
Airnet Communications, Corp. * . . . . . . . 350 13
Brightpoint, Inc. * . . . . . . . . . . . . . 120,100 1,576
Crown Castle International Corp. . . . . . . 23,900 768
Efficient Networks, Inc. * . . . . . . . . . 16,100 1,095
Pinnacle Holdings, Inc. * . . . . . . . . . . 36,700 1,555
Powertel, Inc. . . . . . . . . . . . . . . . 12,700 1,275
Powerwave Technologies, Inc. * . . . . . . . 20,600 1,202
Terayon Communication Systems, Inc. * . . . . 16,100 1,011
--------
8,495
Telecommunication Services - 7.0%
Airgate PCS, Inc. * . . . . . . . . . . . . . 30,700 1,619
Apex, Inc. * . . . . . . . . . . . . . . . . 41,800 1,348
CoreComm, Ltd. * . . . . . . . . . . . . . . 19,100 1,134
Illuminet Holdings, Inc. * . . . . . . . . . 15,800 869
Latitude Communications, Inc. * . . . . . . . 35,800 935
Orckit Communications, Ltd. * . . . . . . . . 31,000 1,064
Paradyne Networks, Inc. * . . . . . . . . . . 26,600 725
Rural Cellular Corp. - Cl. A * . . . . . . . 15,400 1,394
US LEC Corp. - Cl. A * . . . . . . . . . . . 34,700 1,119
Wink Communications, Inc. * . . . . . . . . . 24,800 1,490
Winstar Communications, Inc. * . . . . . . . 10,500 790
--------
12,487
Transportation Services - 2.2%
Circle International Group, Inc. . . . . . . 41,200 917
Eagle USA Airfreight, Inc. * . . . . . . . . 18,100 780
Expeditors International of Washington, Inc. 23,000 1,008
Forward Air Corp. * . . . . . . . . . . . . . 30,200 1,310
--------
4,015
--------
TOTAL COMMON STOCK- 99.3% 178,310
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 0.5%
Investment in joint repurchase agreement with
Barclays Bank plc dated 12/31/99, 2.49% due
01/03/00 (Secured by $801 U.S. Treasury
Notes, 4.0% due 10/31/00, Market Value $793
and $193 U.S. Treasury Bonds, 7.625% due
11/15/22, Market Value $213) . . . . . . . . $ 978 $ 978
------- --------
TOTAL INVESTMENTS- 99.8% 179,288
Cash and Receivables, less payables- 0.2% 282
------- --------
NET ASSETS- 100.0% $179,570
======= ========
</TABLE>
* Non-income producing security.
See notes to financial securities.
88
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Australia - 2.0%
Amcor, Ltd. (CONT) . . . . . . . . . . . . . 2,900 $ 14
AMP, Ltd. * (INSU) . . . . . . . . . . . . . 2,800 31
Boral, Ltd. (CONS) . . . . . . . . . . . . . 9,200 14
Brambles Industries, Ltd. (DIOP) . . . . . . 700 19
Broken Hill Proprietary Co., Ltd. (DIOP) . . 4,500 59
CSR, Ltd. (CONS) . . . . . . . . . . . . . . 7,100 17
Lend Lease Corp. (FINL). . . . . . . . . . . 2,400 34
National Australia Bank, Ltd. (BANK) . . . . 4,600 70
News Corp., Ltd. (MEDI). . . . . . . . . . . 8,200 80
Qantas Airways, Ltd. (TRAN). . . . . . . . . 3,982 10
QBE Insurance Group, Ltd. (INSU) . . . . . . 4,629 22
Rio Tinto, Ltd. (PMET) . . . . . . . . . . . 1,900 41
Santos, Ltd. (OILX). . . . . . . . . . . . . 6,700 18
Telstra Corp., Ltd. (TELS) . . . . . . . . . 21,500 117
Westpac Banking Corp., Ltd. (BANK) . . . . . 8,600 59
WMC, Ltd. (DIOP) . . . . . . . . . . . . . . 2,500 14
Woolworth's, Ltd. (RETS) . . . . . . . . . . 7,400 25
---------
644
Austria - 0.1%
Austria Tabak AG (FOOD). . . . . . . . . . . 400 19
Belgium - 0.6%
Electrabel SA (UTIE) . . . . . . . . . . . . 170 56
Fortis (B) (INSU). . . . . . . . . . . . . . 3,698 133
---------
189
Canada - 1.1%
Agrium, Inc. (AGRI). . . . . . . . . . . . . 2,300 18
Alcan Aluminum, Ltd. (META). . . . . . . . . 800 33
Bank of Montreal (BANK). . . . . . . . . . . 500 17
Canadian National Railway Co. (TRAN) . . . . 1,000 26
Canadian Pacific, Ltd. (TRAN). . . . . . . . 1,400 30
Hudson's Bay Co. (RETS). . . . . . . . . . . 2,100 25
Imasco, Ltd. (DIOP). . . . . . . . . . . . . 800 22
Imperial Oil, Ltd. (OILX). . . . . . . . . . 1,200 26
Magna International, Inc. (AUTO) . . . . . . 400 17
Newbridge Networks Corp. (TELE). . . . . . . 1,100 25
NOVA Chemicals Corp. (CHEM). . . . . . . . . 848 17
Price REIT, Inc. (REIT). . . . . . . . . . . 300 14
Royal Bank of Canada (BANK). . . . . . . . . 800 35
Shaw Communications, Inc. (MEDI) . . . . . . 700 23
Transcanada Pipelines, Ltd. (OILE) . . . . . 644 6
Westcoast Energy, Inc. (UTIG). . . . . . . . 500 8
---------
342
Denmark - 0.3%
Tele Danmark A/S(TELS). . . . . . . . . . . . 1,300 97
Finland - 1.5%
Nokia Oyj (TELE) . . . . . . . . . . . . . . 1,400 254
Sampo Insurance Co. plc (INSU) . . . . . . . 3,300 115
UPM-Kymmene Corp. * (PAPR) . . . . . . . . . 2,900 117
---------
486
France - 5.3%
Air Liquide (CHEM) . . . . . . . . . . . . . 760 127
Alcatel Alsthom (TELE) . . . . . . . . . . . 440 101
AXA SA (INSU). . . . . . . . . . . . . . . . 420 59
Banque Nationale de Paris (BANK) . . . . . . 2,218 205
Carrefour SA (RETF). . . . . . . . . . . . . 420 77
Compagnie de St. Gobain (CONS) . . . . . . . 386 73
France Telecom (TELS). . . . . . . . . . . . 1,950 258
Group Danone * (FOOD). . . . . . . . . . . . 340 80
Groupe Air France * (TRAN) . . . . . . . . . 2,890 55
Michelin (PART). . . . . . . . . . . . . . . 858 34
Rhone-Poulenc SA (BANK). . . . . . . . . . . 1,780 103
Schneider SA (MACH). . . . . . . . . . . . . 860 68
Societe Generale de Paris (BANK) . . . . . . 535 124
Thomson CSF (ETRN) . . . . . . . . . . . . . 2,900 96
Total SA - Cl. B (OILX). . . . . . . . . . . 1,064 142
Vivendi (DIOP) . . . . . . . . . . . . . . . 820 74
---------
1,676
Germany - 4.9%
Allianz AG - Reg. (INSU) . . . . . . . . . . 418 140
Bayer AG (CHEM). . . . . . . . . . . . . . . 4,150 196
Bayerische Motoren Werke AG (AUTO) . . . . . 1,900 58
Continental AG (PART). . . . . . . . . . . . 2,800 56
DaimlerChrysler AG (AUTO). . . . . . . . . . 1,372 107
Deutsche Bank AG (BANK). . . . . . . . . . . 1,516 128
Deutsche Telekom AG (TELS) . . . . . . . . . 1,950 139
Dresdner Bank AG (BANK). . . . . . . . . . . 1,500 82
Mannesmann AG (MACH) . . . . . . . . . . . . 700 169
SAP AG (SOFT). . . . . . . . . . . . . . . . 100 49
Siemens AG (DIOP). . . . . . . . . . . . . . 2,250 286
VEBA AG (DIOP) . . . . . . . . . . . . . . . 3,020 147
---------
1,557
Hong Kong - 0.1%
Henderson Land Development Co., Ltd. (READ) 5,000 32
Italy - 1.5%
Assicurazioni Generali (INSU). . . . . . . . 1,900 63
Beni Stabili SpA * (REAL). . . . . . . . . . 6,135 2
ENI SpA (OILS) . . . . . . . . . . . . . . . 23,000 127
Istituto Bancario San Paolo di Torino (BANK). 6,135 83
La Rinascente SpA (CONS) . . . . . . . . . . 5,817 37
Telecom Italia Mobile SpA (TELS) . . . . . . 10,000 112
Telecom Italia SpA * (TELS). . . . . . . . . 4,000 56
---------
480
Japan - 18.8%
Acom Co., Ltd. (LEND). . . . . . . . . . . . 500 49
Asahi Bank, Ltd. (BANK). . . . . . . . . . . 12,000 74
Bank of Tokyo-Mitsubishi (BANK). . . . . . . 5,000 70
Benesse Corp. (COMM) . . . . . . . . . . . . 200 48
Bridgestone Corp. (PART) . . . . . . . . . . 3,000 66
Canon, Inc. (COMM) . . . . . . . . . . . . . 4,000 159
</TABLE>
89
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Japan - Continued
Citizen Watch Co., Ltd. (RETS).................. 6,000 $ 38
Dai - Ichi Kangyo Bank, Ltd. (FINL)............. 9,000 84
Dai Nippon Printng Co., Ltd. (COMM)............. 4,000 64
Daikin Industries, Ltd. (CONS).................. 5,000 68
Denso Corp. (ETRN).............................. 2,000 48
East Japan Railway Co. (TRAN)................... 6 32
FamilyMart Co., Ltd. (RETF)..................... 900 60
Fanuc, Ltd. (ELEQ).............................. 1,300 166
Fuji Bank, Ltd. (BANK).......................... 6,000 58
Fuji Heavy Industries Ltd. (AUTO)............... 7,000 48
Fuji Photo Film (LEIS).......................... 2,000 73
Fujisawa Pharmeceutical Co., Ltd. (HEAL)........ 3,000 73
Fujitsu, Ltd. (ELEQ)............................ 6,000 274
Futaba Corp. (ETRN)............................. 400 18
Hitachi Credit Corp. (FINL)..................... 2,000 41
Hitachi Software (SOFT)......................... 1,000 146
Honda Motor Co. (AUTO).......................... 3,000 112
House Foods Corp. (FOOD)........................ 2,000 30
Hoya Corp. (ETRN)............................... 1,000 79
Ito-Yokado Co., Ltd. (RETS)..................... 1,000 109
Kamigumi Co., Ltd. (TRAN)....................... 6,000 25
KAO Corp. (HNBA)................................ 2,000 57
Kirin Brewery Co. (FOOD)........................ 4,000 42
Kokuyo Co. (COMM)............................... 1,000 13
Kuraray Co., Ltd. (APPA)........................ 4,000 41
Matsushita Electric Industrial Co. (ETRN)....... 5,000 138
Mitsubishi Corp. (DIOP)......................... 7,000 54
Mitsubishi Estate Co., Ltd. (REAL).............. 4,000 39
Mitsubishi Trust & Banking Corp. (BANK)......... 4,000 35
Mitsui Fudosan (REAL)........................... 6,000 41
Mitsui O.S.K. Lines, Ltd. (TRAN)................ 22,000 37
NEC Corp. (COMP)................................ 6,000 143
NGK Insulators (PART)........................... 6,000 45
Nintendo Corp., Ltd. (LEIS)..................... 600 100
Nippon Steel Co. (STEE)......................... 19,000 44
Nippon Telegraph & Telephone Corp. (UTIT)....... 11 188
Nissin Food Products Co., Ltd. (FOOD)........... 1,700 40
Nitto Denko Corp. (ETRN)........................ 2,000 100
Nomura Securities Co., Ltd. (FUND).............. 4,000 72
NTT Mobile Communications Network, Inc.
(TELS)......................................... 11 423
Obayashi Corp. (CONS)........................... 7,000 33
Orix Corp. (FINL)............................... 500 113
Osaka Gas Co. (UTIG)............................ 10,000 24
Ricoh Co., Ltd. (ETRN).......................... 2,000 38
Rohm Co., Ltd. (ETRN)........................... 300 123
Sankyo Co., Ltd. (HEAL)......................... 2,000 41
Santen Pharmaceutical Co., Ltd. (HEAL).......... 1,000 16
Sanwa Bank, Ltd. (BANK)......................... 2,000 24
Secom Co. (ETRN)................................ 1,000 110
Sekisui House, Ltd. (CONS)...................... 5,000 44
Seven-Eleven Japan (RETF)....................... 1,000 159
Softbank Corp. * (SOFT)......................... 100 96
Sony Corp. (ETRN)............................... 1,000 297
Sumisho Computer Systems Corp. (SOFT)........... 1,000 69
Sumitomo Bakelite Co., Ltd. (CHEM)............. 4,000 36
Sumitomo Bank (BANK)............................ 5,000 68
Sumitomo Chemical Co. (CHEM).................... 9,000 42
Sumitomo Electric Industries (TELE)............. 3,000 35
Takeda Chemical Industries (HEAL)............... 2,000 99
TDK Corp. (COMP)................................ 1,000 138
Tokio Marine & Fire Insurance Co. (INSU)........ 5,000 58
Tokyo Electric Power (UTIE)..................... 2,100 56
Tokyo Electron, Ltd. (ETRN)..................... 1,000 137
Toyota Motor Corp. (AUTO)....................... 4,000 194
Yamato Transport Co., Ltd. (TRAN)............... 3,000 116
---------
5,930
Netherlands - 2.7%
ABN Amro Holding NV (BANK)...................... 3,222 80
Elsevier NV (MEDP).............................. 8,500 102
ING Groep NV (BANK)............................. 3,918 237
KPN NV (UTIT)................................... 1,950 190
Royal Dutch Petroleum Co. (OILS)................ 1,700 104
TNT Post Group NV (TRAN)........................ 2,100 60
Unilever NV - CVA (CNSU)........................ 1,192 66
---------
839
New Zealand - 0.2%
Auckland International (TRAN)................... 4,200 6
Carter Holt Harvey, Ltd. (PAPR)................. 6,500 9
Fletcher Challenge Paper (PAPR)................. 10,300 7
Lion Nathan, Ltd. (FOOD)........................ 4,900 12
Telecom Corp. of New Zealand, Ltd. (TELS)....... 6,600 31
---------
65
Norway - 0.1%
Norske Skogsindustrier ASA - Cl. A (PAPR)....... 800 42
Portugal - 0.4%
EDP-Electricidade de Portugal SA (UTIE)......... 3,100 54
Portugal Telecom, SA (TELS)..................... 5,500 60
---------
114
Singapore - 0.5%
Singapore Press Holdings, Ltd. (MEDP)........... 3,948 86
United Overseas Bank, Ltd. (BANK)............... 6,336 56
---------
142
Spain - 1.7%
Banco Popular Espanol SA (BANK)................. 1,671 109
Banco Santander Central Hispano SA (BANK)....... 8,913 101
Endesa SA (UTIE)................................ 2,877 57
Tabacalera SA - Cl. A (FOOD).................... 8,420 120
Telefonica SA (UTIT)............................ 6,077 152
---------
539
</TABLE>
90
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Sweden - 2.0%
Electrolux AB - Ser. B (APPL) . . . . . . . . 5,390 $ 136
Investor AB - B Shares (FUND) . . . . . . . . 5,110 72
Nordbanken Holding (BANK) . . . . . . . . . 19,990 118
Swedish Match (FOOD) . . . . . . . . . . . . 20,390 71
Telefonaktiebolaget LM Ericsson - B Shares
(TELE) . . . . . . . . . . . . . . . . . . . 3,800 244
---------
641
Switzerland - 2.1%
Adecco SA - Reg. (COMM) . . . . . . . . . . . 96 75
Nestle SA (FOOD) . . . . . . . . . . . . . . 76 139
Novartis AG (HEAL) . . . . . . . . . . . . . 117 172
Roche Holding AG (HEAL) . . . . . . . . . . 15 178
Swisscom AG - Reg. (UTIT) . . . . . . . . . . 271 109
---------
673
United Kingdom - 9.7%
Allied Zurich AG * (INSU) . . . . . . . . . 5,950 70
AstraZeneca Group plc (HEAL) . . . . . . . . 2,028 84
Barclays Bank (BANK) . . . . . . . . . . . . 3,000 86
BP Amoco plc (OILE) . . . . . . . . . . . . 20,974 212
British Aerospace plc (AERO) . . . . . . . . 4,030 26
British Airways plc (TRAN) . . . . . . . . . 7,000 46
British Telecommunications plc (TELS) . . . 9,000 218
Charter plc (DIOP) . . . . . . . . . . . . . 11,372 49
Diageo plc (FOOD) . . . . . . . . . . . . . 11,739 94
FKI plc (DIOP) . . . . . . . . . . . . . . . 32,000 125
Glaxo Wellcome plc - ADR (HEAL) . . . . . . . 6,300 179
Greenalls Group, plc (RETF) . . . . . . . . 8,400 40
House of Fraser plc (RETS) . . . . . . . . . 19,000 23
HSBC Holdings plc (BANK) . . . . . . . . . . 5,000 69
Lloyds TSB Group plc (BANK) . . . . . . . . 15,000 186
Marconi plc (TELE) . . . . . . . . . . . . . 9,400 166
Marks & Spencer plc (RETS) . . . . . . . . . 14,000 67
National Power plc (UTIE) . . . . . . . . . 16,000 92
Nycomed Amersham plc (HEAL) . . . . . . . . 12,000 76
Peninsular & Oriental Steam Navigation Co.
(TRAN) . . . . . . . . . . . . . . . . . . . 3,654 61
PowerGen plc (UTIE) . . . . . . . . . . . . 9,000 65
Prudential Corp. (INSU) . . . . . . . . . . 7,000 137
Reckitt & Colman plc (HNBA) . . . . . . . . 5,000 47
Reed International plc (MEDP) . . . . . . . 12,000 90
Rio Tinto plc - Reg. (DIOP) . . . . . . . . . 4,900 118
RJB Mining plc (META) . . . . . . . . . . . 15,500 8
Royal & Sun Alliance Insurance Group plc
(INSU) . . . . . . . . . . . . . . . . . . . 7,494 56
Scottish and Southern Energy plc (UTIE) . . 11,900 95
Tesco plc (RETF) . . . . . . . . . . . . . . 31,000 94
Thames Water plc (AGRI) . . . . . . . . . . 3,583 44
Trinity Mirror plc (MEDP) . . . . . . . . . 6,800 73
Unilever plc (CNSU) . . . . . . . . . . . . 9,000 66
United News & Media plc (MEDP) . . . . . . . 10,000 126
Yorkshire Water plc (AGRI) . . . . . . . . . 10,000 56
---------
3,044
---------
TOTAL COMMON STOCK- 55.6% 17,551
=========
PREFERRED STOCK - 0.1%
Australia - 0.1%
News Corp., Ltd. (MEDI) . . . . . . . . . . 2,700 23
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Australia - 2.5%
Queensland Treasury Corp. - Bonds (FORG)
6.5% due 06/14/05 . . . . . . . . . . . . . . $ 1,250 805
Canada - 4.2%
Government of Canada - Debs. (GOVF)
4.25% due 12/01/21 . . . . . . . . . . . . . 770 622
7.25% due 06/01/07 . . . . . . . . . . . . . 950 696
---------
1,318
Denmark - 2.5%
Kingdom of Denmark - Bonds (GOVF)
7.0% due 11/10/24 . . . . . . . . . . . . . . 1,000 150
8.0% due 11/15/01 . . . . . . . . . . . . . . 2,700 387
8.0% due 03/15/06 . . . . . . . . . . . . . . 1,600 245
---------
782
France - 5.7%
Government of France - Debs. (GOVF)
4.0% due 10/25/09 . . . . . . . . . . . . . . 90 81
Government of France - Bonds (GOVF)
5.5% due 10/12/01 . . . . . . . . . . . . . . 1,100 1,132
5.5% due 04/25/29 . . . . . . . . . . . . . . 610 574
---------
1,787
Germany - 5.0%
DePfa Deutsche Pfandbriefbank AG (BANK)
5.75% due 03/04/09 . . . . . . . . . . . . . 510 516
Federal Republic of Germany - Bonds (GOVF)
6.0% due 06/20/16 . . . . . . . . . . . . . . 230 242
6.25% due 04/26/06 . . . . . . . . . . . . . 260 278
Treuhandanstalt (FORG)
7.375% due 12/02/02 . . . . . . . . . . . . . 510 552
---------
1,588
Italy - 1.6%
Republic of Italy (GOVF)
9.5% due 02/01/06 . . . . . . . . . . . . . . 420 502
Japan - 4.8%
Government of Japan - Bonds (GOVF)
4.4% due 03/21/05 . . . . . . . . . . . . . . 132,000 1,513
</TABLE>
91
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS - CONTINUED
Netherlands - 2.8%
Government of Netherlands - Bonds (GOVF)
5.5% due 01/15/28 . . . . . . . . . . . . . . $ 170 $ 159
5.75% due 02/15/07 . . . . . . . . . . . . . 140 145
6.5% due 04/15/03 . . . . . . . . . . . . . . 560 593
-------
897
Spain - 2.1%
Government of Spain - Bonds (GOVF)
3.25% due 01/31/05 . . . . . . . . . . . . . 710 654
Supra National - 1.0%
Government of Netherlands - Bonds (GOVF)
3.75% due 07/15/09 . . . . . . . . . . . . . 165 145
Queensland Treasury Corp. (FORG)
6.0% due 07/14/09 . . . . . . . . . . . . . . 270 163
-------
308
Sweden - 3.8%
Government of Sweden - Debs. (GOVF)
6.5% due 10/25/06 . . . . . . . . . . . . . . 3,600 444
6.75% due 05/05/14 . . . . . . . . . . . . . 2,100 266
10.25% due 05/05/03 . . . . . . . . . . . . . 3,700 499
-------
1,209
United Kingdom - 3.6%
U.K. Treasury (GOVF)
7.25% due 12/07/07 . . . . . . . . . . . . . 655 1,152
-------
TOTAL PUBLICLY-TRADED BONDS- 39.6% 12,515
SHORT-TERM INVESTMENTS - 2.6%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . 829 829
--------- -------
TOTAL INVESTMENTS- 97.9% 30,918
Cash and Receivables, less payables- 2.1% 659
--------- -------
NET ASSETS- 100.0% $31,577
========= =======
</TABLE>
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Foreign Governmental . . . . . . . . . . . . GOVF $10,479 34.8%
Banks. . . . . . . . . . . . . . . . . . . . BANK 2,797 9.3%
Foreign . . . . . . . . . . . . . . . . . . FORG 1,519 5.1%
Telecommunication Services . . . . . . . . . TELS 1,511 5.0%
Electronic Products and Services . . . . . . ETRN 1,183 3.9%
Diversified Operations . . . . . . . . . . . DIOP 967 3.2%
Health Care Products . . . . . . . . . . . . HEAL 917 3.0%
Insurance. . . . . . . . . . . . . . . . . . INSU 884 2.9%
Telecommunication Equipment. . . . . . . . . TELE 825 2.7%
Food, Beverage and Tobacco . . . . . . . . . FOOD 648 2.2%
Telephone. . . . . . . . . . . . . . . . . . UTIT 640 2.1%
Automobile . . . . . . . . . . . . . . . . . AUTO 535 1.8%
Transportation Services. . . . . . . . . . . TRAN 506 1.7%
Media - Publishing . . . . . . . . . . . . . MEDP 476 1.6%
Electric Power . . . . . . . . . . . . . . . UTIE 475 1.6%
Electrical Equipment . . . . . . . . . . . . ELEQ 439 1.5%
Retail - Food. . . . . . . . . . . . . . . . RETF 430 1.4%
Chemicals. . . . . . . . . . . . . . . . . . CHEM 414 1.4%
Computer Software and Services . . . . . . . SOFT 360 1.2%
Commercial Services. . . . . . . . . . . . . COMM 359 1.2%
Retail - Department Stores . . . . . . . . . RETS 288 1.0%
Construction . . . . . . . . . . . . . . . . CONS 287 1.0%
Computer Equipment . . . . . . . . . . . . . COMP 281 0.9%
Financial Services . . . . . . . . . . . . . FINL 271 0.9%
Machinery. . . . . . . . . . . . . . . . . . MACH 236 0.8%
Oil. . . . . . . . . . . . . . . . . . . . . OILS 231 0.8%
Oil - Equipment and Services . . . . . . . . OILE 217 0.7%
Auto and Truck Parts . . . . . . . . . . . . PART 200 0.7%
Oil and Natural Gas Exploration and
Production. . . . . . . . . . . . . . . . . OILX 186 0.6%
Paper and Forest Products. . . . . . . . . . PAPR 174 0.6%
Leisure and Recreation . . . . . . . . . . . LEIS 173 0.6%
Brokerage and Investment Management. . . . . FUND 144 0.5%
Household Appliances/Furnishings . . . . . . APPL 136 0.5%
Consumer - Miscellaneous . . . . . . . . . . CNSU 132 0.4%
Media - TV/Radio . . . . . . . . . . . . . . MEDI 126 0.4%
Agricultural Operations. . . . . . . . . . . AGRI 118 0.4%
Cosmetics and Personal Care Products . . . . HNBA 104 0.3%
Real Estate Operations . . . . . . . . . . . REAL 82 0.3%
Personal and Commercial Lending. . . . . . . LEND 49 0.2%
Metals and Mining. . . . . . . . . . . . . . META 45 0.2%
Steel. . . . . . . . . . . . . . . . . . . . STEE 44 0.1%
Shoe and Apparel Manufacturing . . . . . . . APPA 41 0.1%
Precious Metals/Gems/Stones. . . . . . . . . PMET 41 0.1%
Real Estate Development. . . . . . . . . . . READ 32 0.1%
Natural Gas Distribution . . . . . . . . . . UTIG 32 0.1%
Aerospace and Defense. . . . . . . . . . . . AERO 27 0.1%
Real Estate Investment Trust . . . . . . . . REIT 14 0.0%
Containers . . . . . . . . . . . . . . . . . CONT 14 0.0%
------- ------
$30,089 100.0%
======= ======
* Non-income producing security.
ADR - American Depository Receipts
See notes to financial statements.
92
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Business Services - 0.3%
Internet Capital Group, Inc. * . . . . . . 8,795 $ 1,495
Commercial Services - 5.8%
Apollo Group, Inc. - Cl. A * . . . . . . . 385,404 7,732
Edison Schools, Inc. * . . . . . . . . . . 9,330 147
Lamar Advertising Co. * . . . . . . . . . 102,490 6,207
TMP Worldwide, Inc. * . . . . . . . . . . 84,410 11,986
--------
26,072
Computer Equipment - 2.3%
Silicon Storage Technology, Inc. * . . . . 9,440 389
VERITAS Software Corp. * . . . . . . . . . 69,435 9,938
--------
10,327
Computer Software and Services - 16.4%
Brocade Communications Systems, Inc. * . . 14,895 2,636
Clarent Corp. * . . . . . . . . . . . . . 16,895 1,314
DoubleClick, Inc. * . . . . . . . . . . . 50,935 12,890
EarthLink Network, Inc. * . . . . . . . . 43,165 1,834
Exodus Communications, Inc. * . . . . . . 165,335 14,684
InfoSpace.com, Inc. * . . . . . . . . . . 6,070 1,299
Liberate Technologies, Inc. * . . . . . . 29,200 7,504
Network Solutions, Inc. - Cl. A * . . . . 31,330 6,816
Phone.com, Inc. * . . . . . . . . . . . . 18,750 2,174
Portal Software, Inc. * . . . . . . . . . 9,440 971
PSINet, Inc. * . . . . . . . . . . . . . . 140,090 8,651
Safeguard Scientifics, Inc. * . . . . . . 25,155 4,077
Software.com, Inc. * . . . . . . . . . . . 40,225 3,862
VA Linux Systems * . . . . . . . . . . . . 6,335 1,309
Vignette Corp. * . . . . . . . . . . . . . 22,535 3,673
Vitria Technology, Inc. * . . . . . . . . 3,235 757
--------
74,451
Consumer - Miscellaneous - 0.1%
FreeMarkets, Inc. * . . . . . . . . . . . 1,330 454
Electronic Products and Services - 11.4%
Atmel Corp. * . . . . . . . . . . . . . . 34,000 1,005
Gemstar International Group, Ltd. * . . . 153,690 10,951
SDL, Inc. * . . . . . . . . . . . . . . . 82,960 18,085
Vitesse Semiconductor Corp. * . . . . . . 243,310 12,759
Xilinx, Inc. * . . . . . . . . . . . . . . 193,060 8,778
--------
51,578
Financial Services - 3.5%
Paychex, Inc. . . . . . . . . . . . . . . 391,872 15,675
Health Care Products - 5.5%
King Pharmaceuticals, Inc. * . . . . . . . 75,570 4,237
MedImmune, Inc. * . . . . . . . . . . . . 58,200 9,654
MiniMed, Inc. * . . . . . . . . . . . . . 47,035 3,445
Sepracor, Inc. * . . . . . . . . . . . . . 76,705 7,608
--------
24,944
Health Care Services - 0.7%
Healtheon Corp. * . . . . . . . . . . . . 89,540 3,358
Leisure and Recreation - 2.6%
Premier Parks, Inc. * . . . . . . . . . . 153,285 4,426
SFX Entertainment, Inc. * . . . . . . . . 198,380 7,179
--------
11,605
Media - TV / Radio - 8.3%
AMFM, Inc. * . . . . . . . . . . . . . . . 80,325 6,285
Citadel Communications Corp. * . . . . . . 75,850 4,921
Cox Radio, Inc. - Cl. A * . . . . . . . . 13,145 1,311
Entercom Communications Corp. * . . . . . 102,035 6,734
Hispanic Broadcasting Corp. * . . . . . . 124,070 11,442
Radio One, Inc. * . . . . . . . . . . . . 33,845 3,114
Univision Communications, Inc. - Cl. A * . 39,353 4,021
--------
37,828
Retail - Department Stores - 2.3%
Amazon.com, Inc. * . . . . . . . . . . . . 40,250 3,064
eBay, Inc. * . . . . . . . . . . . . . . . 57,075 7,145
--------
10,209
Retail - Food - 0.1%
PizzaExpress plc . . . . . . . . . . . . . 21,324 252
Technology - 3.8%
VeriSign, Inc. . . . . . . . . . . . . . . 90,625 17,304
Telecommunication Equipment - 9.9%
American Tower Corp. - Cl. A . . . . . . . 92,650 2,832
Crown Castle International Corp. . . . . . 378,320 12,153
E-Tek Dynamics, Inc. * . . . . . . . . . . 87,960 11,842
Furukawa Electric Co. . . . . . . . . . . 2,000 30
Powertel, Inc. . . . . . . . . . . . . . . 49,405 4,959
RF Micro Devices, Inc. * . . . . . . . . . 62,960 4,309
TriQuint Semiconductor, Inc. * . . . . . . 78,320 8,713
--------
44,838
Telecommunication Services - 20.1%
AT&T Canada, Inc. * . . . . . . . . . . . 160,850 6,474
Clear Channel Communications, Inc. * . . . 44,505 3,972
Clearnet Communications, Inc. - Cl. A * . 152,245 5,233
Level 3 Communications, Inc. * . . . . . . 89,985 7,368
McLeodUSA, Inc. - Cl. A * . . . . . . . . 248,680 14,641
Microcell Telecommunications, Inc. * . . . 75,251 2,474
Net2Phone, Inc. * . . . . . . . . . . . . 67,735 3,112
NTL, Inc. * . . . . . . . . . . . . . . . 81,805 10,205
Omnipoint Corp. * . . . . . . . . . . . . 63,680 7,681
Rogers Cantel Mobile Communications, Inc.* 94,350 3,432
United States Cellular Corp. * . . . . . . 54,740 5,525
VoiceStream Wireless Corp. * . . . . . . . 54,590 7,769
Western Wireless Corp. - Cl. A * . . . . . 197,955 13,214
--------
91,100
Telephone - 4.8%
Metromedia Fiber Network, Inc. - Cl. A * . 295,125 14,148
NEXTLINK Communications, Inc. * . . . . . 91,955 7,638
--------
21,786
--------
TOTAL COMMON STOCK- 97.9% 443,276
</TABLE>
93
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
COMMERCIAL PAPER - 2.1%
Financial Services - 2.1%
Association Corp. of North America
4.0% due 01/03/00 . . . . . . . . . . . . $ 9,400 $ 9,398
-------- --------
TOTAL INVESTMENTS- 100.0% 452,674
Cash and Receivables, less payables- 0.0% 263
-------- --------
NET ASSETS- 100.0% $452,937
======== ========
</TABLE>
* Non-income producing security.
See notes to financial statements.
94
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP BLEND PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 0.8%
Cordant Technologies, Inc. . . . . . . . . . 400 $ 13
Northrop Grumman Corp. . . . . . . . . . . . 600 33
------
46
Auto and Truck Parts - 1.0%
Cooper Tire & Rubber Co. . . . . . . . . . . 700 11
Dana Corp. . . . . . . . . . . . . . . . . . 1,100 33
Meritor Automotive, Inc. . . . . . . . . . . 900 17
------
61
Banks - 5.7%
AmSouth Bancorporation . . . . . . . . . . . 3,100 60
Charter One Financial, Inc. . . . . . . . . 5,145 99
Comerica, Inc. . . . . . . . . . . . . . . . 900 42
First Tennessee National Corp. . . . . . . . 1,200 34
Firstar Corp. . . . . . . . . . . . . . . . 1,672 35
Golden West Financial Corp. . . . . . . . . 1,800 60
------
330
Brokerage and Investment Management - 0.9%
E*TRADE Group, Inc. * . . . . . . . . . . . 2,100 55
Chemicals - 1.1%
Hercules, Inc. . . . . . . . . . . . . . . . 600 17
Praxair, Inc. . . . . . . . . . . . . . . . 600 30
Rohm & Haas Co. . . . . . . . . . . . . . . 400 16
------
63
Commercial Services - 2.8%
Convergys Corp. * . . . . . . . . . . . . . 3,300 102
Equifax, Inc. . . . . . . . . . . . . . . . 1,500 35
Lamar Advertising Co. * . . . . . . . . . . 400 24
------
161
Computer Equipment - 0.7%
Diebold, Inc. . . . . . . . . . . . . . . . 1,000 23
Network Appliance, Inc. * . . . . . . . . . 200 17
------
40
Computer Software and Services - 6.9%
Cabletron Systems, Inc. * . . . . . . . . . 1,000 26
Cadence Design Systems, Inc. * . . . . . . . 1,500 36
Ceridian Corp. * . . . . . . . . . . . . . . 600 13
DST Systems, Inc. * . . . . . . . . . . . . 600 46
Fiserv, Inc. . . . . . . . . . . . . . . . . 1,000 38
Intuit, Inc. * . . . . . . . . . . . . . . . 600 36
Novell, Inc. * . . . . . . . . . . . . . . . 1,200 48
Policy Management Systems Corp. * . . . . . 700 18
Rational Software Corp. * . . . . . . . . . 1,100 54
SunGard Data Systems, Inc. . . . . . . . . . 1,300 31
Synopsys, Inc. * . . . . . . . . . . . . . . 800 53
------
399
Construction - 0.5%
Del Webb Corp. . . . . . . . . . . . . . . . 1,100 27
Consumer - Miscellaneous - 3.4%
American Greetings Corp. - Cl. A . . . . . . 1,200 28
Avery Dennison Corp. . . . . . . . . . . . . 600 44
Black & Decker Corp. . . . . . . . . . . . . 1,600 84
Parker-Hannifin Corp. . . . . . . . . . . . 800 41
------
197
Containers - 0.6%
Smurfit-Stone Container Corp. * . . . . . . 1,400 34
Cosmetics and Personal Care Products - 1.7%
Avon Products, Inc. . . . . . . . . . . . . 1,100 36
Dial Corp. . . . . . . . . . . . . . . . . . 2,500 61
------
97
Diversified Operations - 3.3%
Danaher Corp. . . . . . . . . . . . . . . . 900 43
El Paso Energy Corp. . . . . . . . . . . . . 1,400 54
Illinois Tool Works, Inc. . . . . . . . . . 600 41
Reynolds & Reynolds Co. - Cl. A . . . . . . 2,300 52
------
190
Electric Power - 5.4%
Ameren Corp. . . . . . . . . . . . . . . . . 800 26
CMS Energy Corp. . . . . . . . . . . . . . . 200 6
Constellation Energy Group . . . . . . . . . 1,300 38
Dominion Resources, Inc. . . . . . . . . . . 800 31
DPL, Inc. . . . . . . . . . . . . . . . . . 1,300 23
Edison International . . . . . . . . . . . . 1,400 37
LG&E Energy Corp. . . . . . . . . . . . . . 1,400 24
Northeast Utilities . . . . . . . . . . . . 1,400 29
OGE Energy Corp. . . . . . . . . . . . . . . 1,200 23
Peco Energy Co. . . . . . . . . . . . . . . 900 31
Reliant Energy, Inc. . . . . . . . . . . . . 1,400 32
Wisconsin Energy Corp. . . . . . . . . . . . 600 12
------
312
Electrical Equipment - 1.4%
American Power Conversion . . . . . . . . . 400 11
Pentair, Inc. . . . . . . . . . . . . . . . 600 23
Unicom Corp. . . . . . . . . . . . . . . . . 1,400 47
------
81
Electronic Products and Services - 13.7%
Analog Devices, Inc. * . . . . . . . . . . . 1,100 102
Applied Micro Circuits Corp. * . . . . . . . 500 64
Atmel Corp. * . . . . . . . . . . . . . . . 1,000 30
Jabil Circuit, Inc. * . . . . . . . . . . . 400 29
Lam Research Corp. * . . . . . . . . . . . . 500 56
Linear Technology Corp. . . . . . . . . . . 700 50
LSI Logic Corp. * . . . . . . . . . . . . . 1,100 74
Maxim Integrated Products, Inc. * . . . . . 2,200 104
Sanmina Corp. * . . . . . . . . . . . . . . 700 70
SCI Systems, Inc. * . . . . . . . . . . . . 1,000 82
Vitesse Semiconductor Corp. * . . . . . . . 400 21
Waters Corp. * . . . . . . . . . . . . . . . 1,500 80
Xilinx, Inc. * . . . . . . . . . . . . . . . 800 36
------
798
</TABLE>
95
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP BLEND PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Food, Beverage and Tobacco - 1.4%
Quaker Oats Co. . . . . . . . . . . . . . . 700 $ 46
SUPERVALU, Inc. . . . . . . . . . . . . . . 400 8
Universal Corp. . . . . . . . . . . . . . . 400 9
UST, Inc. . . . . . . . . . . . . . . . . . 800 20
------
83
Health Care Products - 5.0%
Allergan, Inc. . . . . . . . . . . . . . . . 700 35
Bausch & Lomb, Inc. . . . . . . . . . . . . 500 34
Forest Laboratories, Inc. * . . . . . . . . 1,000 62
Genetech, Inc. * . . . . . . . . . . . . . . 300 40
QLT PhotoTherapeutics, Inc. * . . . . . . . 800 47
St. Jude Medical, Inc. * . . . . . . . . . . 1,500 46
VISX, Inc. * . . . . . . . . . . . . . . . . 500 26
------
290
Health Care Services - 1.9%
Biogen, Inc. * . . . . . . . . . . . . . . . 700 59
Lincare Holdings, Inc. . . . . . . . . . . . 500 17
Wellpoint Health Networks, Inc. * . . . . . 500 33
------
109
Household Appliances / Furnishings - 1.0%
Leggett & Platt, Inc. . . . . . . . . . . . 1,100 24
Maytag Corp. . . . . . . . . . . . . . . . . 500 24
Whirlpool Corp. . . . . . . . . . . . . . . 200 13
------
61
Housing - 1.0%
Centex Corp. . . . . . . . . . . . . . . . . 1,700 42
Clayton Homes, Inc. . . . . . . . . . . . . 1,800 16
------
58
Insurance - 4.3%
AXA Financial, Inc. . . . . . . . . . . . . 600 20
St. Paul Cos., Inc. . . . . . . . . . . . . 1,400 47
Torchmark, Inc. . . . . . . . . . . . . . . 1,000 29
Travelers Property Casualty Corp. - Cl. A . 2,000 69
XL Capital, Ltd. - Cl. A . . . . . . . . . . 1,600 83
------
248
Leisure and Recreation - 0.4%
Hasbro, Inc. . . . . . . . . . . . . . . . . 800 15
Mattel, Inc. . . . . . . . . . . . . . . . . 500 7
------
22
Machinery - 0.8%
Ingersoll-Rand Co. . . . . . . . . . . . . . 900 50
Media - Publishing - 1.7%
Knight-Ridder, Inc. . . . . . . . . . . . . 800 48
New York Times Co. - Cl. A . . . . . . . . . 1,100 54
------
102
Media - TV / Radio - 1.2%
Hispanic Broadcasting Corp. * . . . . . . . 100 9
Westwood One, Inc. * . . . . . . . . . . . . 800 61
------
70
Metal Product and Fabrication - 0.2%
Worthington Industries, Inc. . . . . . . . . 700 12
Natural Gas Distribution - 0.2%
Sempra Energy . . . . . . . . . . . . . . . 600 10
Oil - 0.3%
Conoco, Inc. - Cl. A . . . . . . . . . . . . 700 17
Oil and Natural Gas Exploration and Production - 4.9%
Amerada Hess Corp. . . . . . . . . . . . . . 1,400 79
Anadarko Petroleum Corp. . . . . . . . . . . 2,500 85
Apache Corp. . . . . . . . . . . . . . . . . 400 15
Kerr-McGee Corp. . . . . . . . . . . . . . . 1,400 87
Rowan Cos., Inc. * . . . . . . . . . . . . . 500 11
USX-Marathon Group . . . . . . . . . . . . . 400 10
------
287
Paper and Forest Products - 2.8%
Boise Cascade Corp. . . . . . . . . . . . . 900 36
Champion International Corp. . . . . . . . . 900 56
Willamette Industries, Inc. . . . . . . . . 1,500 70
------
162
Personal and Commercial Lending - 0.7%
MBNA Corp. . . . . . . . . . . . . . . . . . 1,600 44
Pollution Control - 0.5%
Allied Waste Industries, Inc. * . . . . . . 3,500 31
Real Estate Development - 0.4%
Ryland Group, Inc. . . . . . . . . . . . . . 1,000 23
Retail - Department Stores - 4.5%
Circuit City Stores, Inc. . . . . . . . . . 800 36
Kmart Corp. * . . . . . . . . . . . . . . . 1,700 17
Limited, Inc. . . . . . . . . . . . . . . . 700 30
Tandy Corp. . . . . . . . . . . . . . . . . 1,600 79
Tiffany & Co. . . . . . . . . . . . . . . . 300 27
TJX Cos., Inc. . . . . . . . . . . . . . . . 3,500 71
------
260
Retail - Food - 1.5%
Brinker International, Inc. * . . . . . . . 2,400 58
Outback Steakhouse, Inc. * . . . . . . . . . 1,200 31
------
89
Shoe and Apparel Manufacturing - 0.6%
Jones Apparel Group, Inc. * . . . . . . . . 900 25
WestPoint Stevens, Inc. * . . . . . . . . . 700 12
------
37
Steel - 1.0%
AK Steel Holding Corp. . . . . . . . . . . . 300 5
Nucor Corp. . . . . . . . . . . . . . . . . 800 44
Ryerson Tull, Inc. . . . . . . . . . . . . . 500 10
------
59
</TABLE>
96
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP BLEND PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Telecommunication Equipment - 3.4%
ADC Telecommunications, Inc. * . . . . . . . 500 $ 36
RF Micro Devices, Inc. * . . . . . . . . . . 700 48
Scientific-Atlanta, Inc. . . . . . . . . . . 300 17
Tellabs, Inc. * . . . . . . . . . . . . . . 1,500 96
------
197
Telecommunication Services - 3.1%
Clear Channel Communications, Inc. * . . . . 2,000 178
Telephone - 1.1%
Telephone and Data Systems, Inc. . . . . . . 500 63
Transportation Services - 3.9%
Alaska Air Group, Inc. * . . . . . . . . . . 500 18
CNF Transportation, Inc. . . . . . . . . . . 1,000 34
Delta Air Lines, Inc. . . . . . . . . . . . 200 10
Kansas City Southern Industries, Inc. . . . 1,300 97
Northwest Airlines Corp. * . . . . . . . . . 1,300 29
Southwest Airlines Co. . . . . . . . . . . . 2,300 37
------
225
------
TOTAL COMMON STOCK- 97.7% 5,678
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 2.2%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . $ 125 125
------ ------
TOTAL INVESTMENTS- 99.9% 5,803
Cash and Receivables, less payables- 0.1% 7
------ ------
NET ASSETS- 100.0% $5,810
====== ======
</TABLE>
* Non-income producing security.
See notes to financial statements.
97
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 2.3%
Boeing Co. . . . . . . . . . . . . . . . 28,500 $ 1,184
Honeywell International, Inc. . . . . . . 13,600 785
Lockheed Martin Corp. . . . . . . . . . . 76,800 1,680
--------
3,649
Auto and Truck Parts - 1.7%
Dana Corp. . . . . . . . . . . . . . . . 10,000 299
General Motors Corp. . . . . . . . . . . 13,200 960
Genuine Parts Co. . . . . . . . . . . . . 30,100 747
TRW, Inc. . . . . . . . . . . . . . . . . 11,500 597
--------
2,603
Banks - 6.4%
Bank of America Corp. . . . . . . . . . . 16,400 823
Bank One Corp. . . . . . . . . . . . . . 42,300 1,356
Chase Manhattan Corp. . . . . . . . . . . 10,100 784
FleetBoston Financial Corp. . . . . . . . 58,472 2,035
J.P. Morgan & Co., Inc. . . . . . . . . . 14,000 1,773
KeyCorp . . . . . . . . . . . . . . . . . 22,900 507
Mercantile Bankshares Corp. . . . . . . . 21,500 687
National City Corp. . . . . . . . . . . . 25,400 602
Wells Fargo & Co. . . . . . . . . . . . . 34,400 1,391
--------
9,958
Business Services - 0.9%
Dun & Bradstreet Corp. . . . . . . . . . 24,400 720
H & R Block, Inc. . . . . . . . . . . . . 16,700 730
--------
1,450
Chemicals - 4.4%
CK Witco Corp. . . . . . . . . . . . . . 22,273 298
Dow Chemical Co. . . . . . . . . . . . . 13,500 1,804
E.I. du Pont de Nemours & Co. . . . . . . 33,400 2,200
Great Lakes Chemical Corp. . . . . . . . 24,600 939
Hercules, Inc. . . . . . . . . . . . . . 38,300 1,068
Imperial Chemical Industries plc - ADR . 14,500 617
--------
6,926
Commercial Services - 0.3%
R.R. Donnelley & Sons Co. . . . . . . . . 19,700 489
Computer Equipment - 2.4%
Compaq Computer Corp. . . . . . . . . . . 30,200 817
Hewlett-Packard Co. . . . . . . . . . . . 14,900 1,698
Xerox Corp. . . . . . . . . . . . . . . . 56,300 1,277
--------
3,792
Construction - 0.4%
Armstrong World Industries, Inc. . . . . 16,300 544
Consumer - Miscellaneous - 1.9%
Fortune Brands, Inc. . . . . . . . . . . 19,500 645
Stanley Works . . . . . . . . . . . . . . 29,100 877
Tupperware Corp. . . . . . . . . . . . . 14,000 237
Unilever NV - CVA . . . . . . . . . . . . 21,400 1,182
--------
2,941
Cosmetics and Personal Care Products - 0.9%
International Flavors & Fragrances, Inc. 35,200 $ 1,329
Diversified Operations - 3.3%
Cooper Industries, Inc. . . . . . . . . . 14,000 566
Minnesota Mining & Manufacturing Co. . . 22,000 2,153
Pall Corp. . . . . . . . . . . . . . . . 49,400 1,065
PPG Industries, Inc. . . . . . . . . . . 20,400 1,277
--------
5,061
Electric Power - 3.8%
DQE, Inc. . . . . . . . . . . . . . . . . 16,900 585
Duke Energy Co. . . . . . . . . . . . . . 27,100 1,359
Entergy Corp. . . . . . . . . . . . . . . 14,800 381
Firstenergy Corp. . . . . . . . . . . . . 29,200 663
Niagara Mohawk Holdings, Inc. . . . . . . 16,600 231
Reliant Energy, Inc. . . . . . . . . . . 32,800 750
ScottishPower plc - ADR . . . . . . . . . 15,718 440
Southern Co. . . . . . . . . . . . . . . 51,400 1,208
Teco Energy, Inc. . . . . . . . . . . . . 13,900 258
--------
5,875
Electrical Equipment - 0.5%
Unicom Corp. . . . . . . . . . . . . . . 24,900 834
Electronic Products and Services - 0.3%
Hubbell, Inc. - Cl. B . . . . . . . . . . 18,100 493
Financial Services - 3.3%
Citigroup, Inc. . . . . . . . . . . . . . 43,275 2,405
Mellon Financial Corp. . . . . . . . . . 80,600 2,745
--------
5,150
Food, Beverage and Tobacco - 9.4%
Anheuser-Busch Cos., Inc. . . . . . . . . 24,900 1,765
Brown-Forman Corp. - Cl. B . . . . . . . 15,700 899
Campbell Soup Co. . . . . . . . . . . . . 30,000 1,160
General Mills, Inc. . . . . . . . . . . . 65,100 2,327
H.J. Heinz Co. . . . . . . . . . . . . . 39,300 1,565
Hershey Foods Corp. . . . . . . . . . . . 24,600 1,168
Kellogg Co. . . . . . . . . . . . . . . . 29,700 915
McCormick & Co., Inc. . . . . . . . . . . 28,600 851
Philip Morris Cos., Inc. . . . . . . . . 60,800 1,410
Quaker Oats Co. . . . . . . . . . . . . . 22,000 1,444
UST, Inc. . . . . . . . . . . . . . . . . 44,700 1,126
--------
14,630
Health Care Products - 4.8%
Abbott Laboratories . . . . . . . . . . . 35,700 1,296
American Home Products Corp. . . . . . . 66,100 2,607
Becton, Dickinson & Co. . . . . . . . . . 5,400 144
Merck & Co., Inc. . . . . . . . . . . . . 13,300 892
Pharmacia & Upjohn, Inc. . . . . . . . . 43,700 1,967
Smith & Nephew plc . . . . . . . . . . . 149,500 502
--------
7,408
Household Appliances / Furnishings - 0.4%
Whirlpool Corp. . . . . . . . . . . . . . 9,600 625
</TABLE>
98
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - Continued
Insurance - 4.9%
American General Corp. . . . . . . . . . 26,200 $ 1,988
Chubb Corp. . . . . . . . . . . . . . . . 22,200 1,250
Lincoln National Corp. . . . . . . . . . 19,900 796
Safeco Corp. . . . . . . . . . . . . . . 26,300 654
St. Paul Cos., Inc. . . . . . . . . . . . 44,352 1,494
UnumProvident Corp. . . . . . . . . . . . 31,500 1,010
XL Capital, Ltd. - Cl. A . . . . . . . . 9,300 483
--------
7,675
Leisure and Recreation - 2.4%
Eastman Kodak Co. . . . . . . . . . . . . 28,700 1,901
Hasbro, Inc. . . . . . . . . . . . . . . 28,900 551
Hilton Hotels Corp. . . . . . . . . . . . 37,700 363
Starwood Hotels & Resorts Worldwide, Inc. 40,700 957
--------
3,772
Media - Publishing - 2.0%
Dow Jones & Co., Inc. . . . . . . . . . . 15,400 1,047
Knight-Ridder, Inc. . . . . . . . . . . . 24,900 1,482
Readers Digest Association, Inc. - Cl. A 17,300 506
--------
3,035
Media - TV / Radio - 1.3%
The Walt Disney Co. . . . . . . . . . . . 70,900 2,074
Metal Product and Fabrication - 0.5%
Reynolds Metals Co. . . . . . . . . . . . 10,300 789
Metals and Mining - 0.7%
Inco, Ltd. . . . . . . . . . . . . . . . 17,700 416
Phelps Dodge Corp. . . . . . . . . . . . 10,300 691
--------
1,107
Oil - 3.0%
Atlantic Richfield Co. (ARCO) . . . . . . 31,000 2,681
Royal Dutch Petroleum Co. - NY Shares . . 33,600 2,031
--------
4,712
Oil - Equipment and Services - 4.2%
Baker Hughes, Inc. . . . . . . . . . . . 60,000 1,264
Exxon Mobil Corp. . . . . . . . . . . . . 64,767 5,218
--------
6,482
Oil and Natural Gas Exploration and Production - 7.5%
Amerada Hess Corp. . . . . . . . . . . . 24,300 1,379
BP Amoco plc - ADR . . . . . . . . . . . 47,652 2,827
Chevron Corp. . . . . . . . . . . . . . . 25,700 2,226
Phillips Petroleum Co. . . . . . . . . . 17,700 832
Texaco, Inc. . . . . . . . . . . . . . . 36,000 1,955
Unocal Corp. . . . . . . . . . . . . . . 51,800 1,739
USX-Marathon Group . . . . . . . . . . . 32,500 802
--------
11,760
Paper and Forest Products - 4.7%
Consolidated Papers, Inc. . . . . . . . . 24,500 780
Fort James Corp. . . . . . . . . . . . . 41,800 1,144
International Paper Co. . . . . . . . . . 54,770 3,091
Kimberly-Clark Corp. . . . . . . . . . . 36,000 2,349
--------
7,364
Pollution Control - 0.7%
Waste Management, Inc. . . . . . . . . . 63,790 1,096
Precious Metals/Gems/Stones - 0.4%
Newmont Mining Corp. . . . . . . . . . . 27,400 671
Real Estate Investment Trust - 0.7%
Simon Property Group, Inc. . . . . . . . 35,500 814
Vornado Realty Trust . . . . . . . . . . 8,800 286
--------
1,100
Real Estate Operations - 0.3%
Rouse Co. . . . . . . . . . . . . . . . . 20,600 438
Retail - Department Stores - 1.2%
J.C. Penney Co., Inc. . . . . . . . . . . 12,800 255
May Department Stores Co. . . . . . . . . 23,950 773
Toys "R" Us, Inc. * . . . . . . . . . . . 55,200 790
--------
1,818
Retail - Drug Stores - 0.2%
Rite Aid Corp. . . . . . . . . . . . . . 24,000 268
Telecommunication Services - 1.4%
BCE, Inc. . . . . . . . . . . . . . . . . 24,100 2,174
Telephone - 8.8%
Alltel Corp. . . . . . . . . . . . . . . 30,800 2,547
AT&T Corp. . . . . . . . . . . . . . . . 15,800 802
Bell Atlantic Corp. . . . . . . . . . . . 31,300 1,927
BellSouth Corp. . . . . . . . . . . . . . 15,700 735
GTE Corp. . . . . . . . . . . . . . . . . 37,100 2,618
SBC Communications, Inc. . . . . . . . . 60,855 2,966
U.S. West, Inc. . . . . . . . . . . . . . 29,600 2,131
--------
13,726
Transportation Services - 2.5%
Burlington Northern Santa Fe . . . . . . 25,700 623
GATX Corp. . . . . . . . . . . . . . . . 6,500 219
Norfolk Southern Corp. . . . . . . . . . 68,400 1,402
Union Pacific Corp. . . . . . . . . . . . 37,900 1,654
--------
3,898
U.S. Government Agencies - 1.1%
Federal National Mortgage Assoc. . . . . 27,700 1,730
--------
TOTAL COMMON STOCK- 95.9% 149,446
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
COMMERCIAL PAPER
Commercial Services - 0.2%
President & Fellows Harvard Co.
5.0% due 01/03/00 . . . . . . . . . . . . $ 396 396
</TABLE>
99
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
COMMERCIAL PAPER - CONTINUED
Electric Power - 1.3%
Consolidated Edison, Inc.
6.65% due 01/21/00 . . . . . . . . . . . $ 2,000 $ 1,993
Financial Services - 1.3%
Island Finance Puerto Rico, Inc.
6.1% due 03/21/00 . . . . . . . . . . . . 2,000 1,973
Telecommunication Services - 1.3%
British Telecommunications plc
6.3% due 02/18/00 . . . . . . . . . . . . 2,000 1,983
--------
TOTAL COMMERCIAL PAPER- 4.1% 6,345
-------- --------
TOTAL INVESTMENTS- 100.0% 155,791
Cash and Receivables, less payables- 0.0% 58
-------- --------
NET ASSETS- 100.0% $155,849
======== ========
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt
See notes to financial statements.
100
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 1.5%
Boeing Co. . . . . . . . . . . . 500 $ 21
General Dynamics Corp. . . . . . 600 32
Litton Industries, Inc. * . . . 100 5
Northrop Grumman Corp. . . . . . 100 5
United Technologies Corp. . . . 500 32
--------
95
Auto and Truck Parts - 1.3%
Cooper Tire & Rubber Co. . . . . 500 8
Cummins Engine Company, Inc. . . 200 10
General Motors Corp. . . . . . . 400 29
Johnson Controls, Inc. . . . . . 600 34
TRW, Inc. . . . . . . . . . . . 100 5
--------
86
Automobile - 1.8%
Delphi Automotive Systems Corp. 3,200 50
Ford Motor Co. . . . . . . . . . 1,000 54
Hertz Corp. - Cl. A . . . . . . 200 10
--------
114
Banks - 10.7%
Associated BancCorp. . . . . . . 500 17
Bank of America Corp. . . . . . 2,500 125
Chase Manhattan Corp. . . . . . 1,400 109
Comerica, Inc. . . . . . . . . . 100 5
Cullen/Frost Bankers, Inc. . . . 200 5
First Security Corp. . . . . . . 400 10
First Union Corp. . . . . . . . 900 30
Firstar Corp. . . . . . . . . . 2,700 57
FleetBoston Financial Corp. . . 1,876 65
Golden West Financial Corp. . . 600 20
J.P. Morgan & Co., Inc. . . . . 200 25
KeyCorp . . . . . . . . . . . . 300 7
National City Corp. . . . . . . 400 9
Old Kent Financial Corp. . . . . 300 11
Suntrust Banks, Inc. . . . . . . 800 55
U.S. Bancorp . . . . . . . . . . 400 9
UnionBanCal Corp. . . . . . . . 800 32
Washington Mutual, Inc. . . . . 500 13
Wells Fargo & Co. . . . . . . . 2,000 81
--------
685
Brokerage and Investment Management - 2.7%
Legg Mason, Inc. . . . . . . . . 800 29
Merrill Lynch & Co., Inc. . . . 500 42
Morgan Stanley, Dean Witter,
Discover & Co. . . . . . . . . 400 57
Standard and Poor's Depositary
Receipts. . . . . . . . . . . . 300 44
--------
172
Business Services - 0.2%
Comdisco, Inc. . . . . . . . . . 300 11
Chemicals - 2.6%
A. Schulman, Inc. . . . . . . . 300 5
Air Products & Chemicals, Inc. . 200 7
Dow Chemical Co. . . . . . . . . 700 93
Engelhard Corp. . . . . . . . . 200 4
H.B. Fuller Co. . . . . . . . . 200 11
Praxair, Inc. . . . . . . . . . 400 20
Sigma-Aldrich Corp. . . . . . . 900 27
--------
167
Commercial Services - 0.4%
Deluxe Corp. . . . . . . . . . . 300 8
R.R. Donnelley & Sons Co. . . . 300 8
ServiceMaster Co. . . . . . . . 300 4
Valassis Communications, Inc. * 100 4
--------
24
Computer Equipment - 2.4%
Apple Computer, Inc. * . . . . . 200 21
Hewlett-Packard Co. . . . . . . 700 80
International Business Machines Corp 400 43
Lexmark International Group, Inc. -
Cl. A * . . . . . . . . . . . . 100 9
--------
153
Computer Software and Services - 1.0%
Electronic Data Systems Corp. . 100 7
First Data Corp. . . . . . . . . 400 20
Network Associates, Inc. . . . . 100 3
Seagate Technology, Inc. * . . . 400 18
Sun Microsystems, Inc. * . . . . 200 15
--------
63
Construction - 0.1%
USG Corp. * . . . . . . . . . . 100 5
Consumer - Miscellaneous - 0.6%
American Greetings Corp. - Cl. A 200 5
Avery Dennison Corp. . . . . . . 300 22
Parker-Hannifin Corp. . . . . . 200 10
--------
37
Cosmetics and Personal Care Products - 0.7%
Procter & Gamble Co. . . . . . . 400 44
Diversified Operations - 1.4%
Eaton Corp. . . . . . . . . . . 600 44
Minnesota Mining & Manufacturing Co. 200 20
National Service Industries, Inc. 100 3
Pall Corp. . . . . . . . . . . . 300 6
Tyco International, Ltd. . . . . 400 15
--------
88
Electric Power - 4.9%
Ameren Corp. . . . . . . . . . . 400 13
Dominion Resources, Inc. . . . . 800 32
Duke Energy Co. . . . . . . . . 1,000 50
Edison International . . . . . . 1,000 26
Energy East Corp. . . . . . . . 1,200 25
FPL Group, Inc. . . . . . . . . 500 21
GPU, Inc. . . . . . . . . . . . 500 15
</TABLE>
101
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Electric Power - Continued
PG & E Corp. . . . . . . . . . . 400 $ 8
Public Services Enterprise Group,
Inc. . . . . . . . . . . . . . 1,400 49
Southern Co. . . . . . . . . . . 1,100 26
Texas Utilities Co. . . . . . . 1,400 50
--------
315
Electrical Equipment - 0.2%
Emerson Electric Co. . . . . . . 200 11
Electronic Products and Services - 1.7%
Ball Corp. . . . . . . . . . . . 200 8
Cisco Systems, Inc. * . . . . . 200 21
LSI Logic Corp. * . . . . . . . 100 7
Micron Technology, Inc. * . . . 100 8
Motorola, Inc. . . . . . . . . . 300 44
National Semiconductor Corp. * . 200 8
Texas Instruments, Inc. . . . . 100 10
--------
106
Financial Services - 3.7%
Associates First Capital Corp. -
Cl. A * . . . . . . . . . . . . 200 6
Citigroup, Inc. . . . . . . . . 3,500 194
Mellon Financial Corp. . . . . . 200 7
Providian Financial Corp. * . . 300 27
--------
234
Food, Beverage and Tobacco - 2.5%
Adolph Coors Co. - Cl. B . . . . 200 10
Anheuser-Busch Cos., Inc. . . . 100 7
ConAgra, Inc. . . . . . . . . . 700 16
Hormel Foods Corp. . . . . . . . 100 4
IBP, Inc. . . . . . . . . . . . 1,600 29
Nabisco Group Holdings Corp. . . 3,100 33
Nabisco Holdings Corp. - Cl. A . 1,300 41
Philip Morris Cos., Inc. . . . . 500 12
UST, Inc. . . . . . . . . . . . 300 7
--------
159
Health Care Products - 1.5%
Abbott Laboratories . . . . . . 200 7
American Home Products Corp. . 100 4
Bausch & Lomb, Inc. . . . . . . 100 7
Baxter International, Inc. . . . 400 25
Bristol-Myers Squibb Co. . . . . 200 13
Johnson & Johnson . . . . . . . 200 19
Pharmacia & Upjohn, Inc. . . . . 500 22
--------
97
Health Care Services - 1.2%
Columbia/HCA Healthcare Corp. . 500 15
Trigon Healthcare, Inc. * . . . 300 9
United Healthcare Corp. . . . . 1,000 53
--------
77
Household Appliances / Furnishings - 0.1%
Springs Industries, Inc. - Cl. A 100 4
Housing - 0.1%
American Standard Cos., Inc. * . 100 5
Insurance - 8.3%
Aetna, Inc. . . . . . . . . . . 400 22
AFLAC, Inc. . . . . . . . . . . 600 28
American General Corp. . . . . . 800 61
American International Group, Inc. 1,100 119
AXA Financial, Inc. . . . . . . 1,400 48
Conseco, Inc. . . . . . . . . . 300 5
Hartford Financial Services
Group, Inc. . . . . . . . . . . 400 19
Hartford Life, Inc. - Cl. A . . 600 26
Loews Corp. . . . . . . . . . . 700 43
Marsh & McLennan Cos., Inc. . . 600 58
MBIA, Inc. . . . . . . . . . . . 300 16
MGIC Investment Corp. . . . . . 100 6
The PMI Group, Inc. . . . . . . 500 24
Travelers Property Casualty Corp.
- Cl. A . . . . . . . . . . . . 1,500 51
--------
526
Leisure and Recreation - 1.7%
Brunswick Corp. . . . . . . . . 1,900 42
Eastman Kodak Co. . . . . . . . 700 47
Harrah's Entertainment, Inc. * . 200 5
Hasbro, Inc. . . . . . . . . . . 400 8
Metro-Goldwyn-Mayer, Inc. (MGM) * 300 7
--------
109
Machinery - 0.9%
Caterpillar, Inc. . . . . . . . 100 5
Ingersoll-Rand Co. . . . . . . . 200 11
Tecumseh Products Co. - Cl. A . 900 42
--------
58
Media - Publishing - 1.5%
AT&T Corp. - Liberty Media Group -
Cl. A * . . . . . . . . . . . . 900 51
Knight-Ridder, Inc. . . . . . . 200 12
New York Times Co. - Cl. A . . . 400 20
Times Mirror Co. - Cl. A . . . . 100 7
Tribune Co. . . . . . . . . . . 100 5
--------
95
Media - TV / Radio - 2.2%
Comcast Corp. - Cl. A . . . . . 100 5
Cox Communications, Inc. - Cl. A * 500 26
Fox Entertainment Group, Inc. -
Cl. A * . . . . . . . . . . . . 600 15
Infinity Broadcasting Corp. - Cl.
A * . . . . . . . . . . . . . . 1,000 36
The Walt Disney Co. . . . . . . 1,000 29
Viacom, Inc. - Cl. B * . . . . . 500 30
--------
141
Metals and Mining - 1.5%
Alcan Aluminum, Ltd. . . . . . . 1,500 62
Alcoa, Inc. . . . . . . . . . . 300 25
Inco, Ltd. . . . . . . . . . . . 300 7
--------
94
</TABLE>
102
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Natural Gas Distribution - 0.2%
Enron Corp. . . . . . . . . . . 300 $ 13
Oil - 1.0%
Atlantic Richfield Co. (ARCO) . 200 17
Royal Dutch Petroleum Co. - NY
Shares. . . . . . . . . . . . . 800 49
--------
66
Oil - Equipment and Services - 5.0%
Exxon Mobil Corp. . . . . . . . 3,852 310
Halliburton Co. . . . . . . . . 200 8
--------
318
Oil and Natural Gas Exploration and Production - 3.2%
Apache Corp. . . . . . . . . . . 800 30
Burlington Resources, Inc. . . . 200 7
Chevron Corp. . . . . . . . . . 1,100 95
Coastal Corp. . . . . . . . . . 100 4
Kerr-McGee Corp. . . . . . . . . 200 12
Murphy Oil Corp. . . . . . . . . 300 17
Phillips Petroleum Co. . . . . . 200 9
Texaco, Inc. . . . . . . . . . . 400 22
Transocean Sedco Forex, Inc. . . 300 10
--------
206
Paper and Forest Products - 1.0%
Georgia-Pacific Corp. . . . . . 1,000 51
International Paper Co. . . . . 100 6
Weyerhaeuser Co. . . . . . . . . 100 7
--------
64
Personal and Commercial Lending - 0.2%
Household International, Inc. . 300 11
Precious Metals/Gems/Stones - 0.7%
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B . . . . . . . . . . . . . 2,200 47
Retail - Department Stores - 2.6%
Barnes & Noble, Inc. * . . . . . 500 10
BJ's Wholesale Club, Inc. . . . 300 11
Circuit City Stores, Inc. . . . 700 31
Federated Department Stores, Inc. * 1,200 61
Lands' End, Inc. . . . . . . . . 200 7
Limited, Inc. . . . . . . . . . 700 30
Tiffany & Co. . . . . . . . . . 100 9
Zale Corp. * . . . . . . . . . . 200 10
--------
169
Retail - Food - 0.4%
Albertson's, Inc. . . . . . . . 200 6
Brinker International, Inc. * . 200 5
Darden Restaurants, Inc. . . . . 500 9
McDonald's Corp. . . . . . . . . 100 4
--------
24
Shoe and Apparel Manufacturing - 0.3%
Nike, Inc. - Cl. B . . . . . . . 400 20
Telecommunication Services - 2.2%
BCE, Inc. . . . . . . . . . . . 1,000 90
MediaOne Group, Inc. . . . . . . 400 31
United States Cellular Corp. * . 200 20
--------
141
Telephone - 11.2%
Alltel Corp. . . . . . . . . . . 400 33
AT&T Corp. . . . . . . . . . . . 4,200 213
Bell Atlantic Corp. . . . . . . 1,300 80
BellSouth Corp. . . . . . . . . 1,400 66
CenturyTel, Inc. . . . . . . . . 800 38
GTE Corp. . . . . . . . . . . . 600 42
MCI WorldCom, Inc. * . . . . . . 900 48
NEXTLINK Communications, Inc. * 100 8
SBC Communications, Inc. . . . . 3,137 153
Sprint Corp. . . . . . . . . . . 500 34
--------
715
Transportation Services - 1.5%
Alaska Air Group, Inc. * . . . . 100 4
America West Holdings Corp. - Cl. B * 300 6
Burlington Northern Santa Fe . . 200 5
Canadian National Railway Co. . 800 21
Delta Air Lines, Inc. . . . . . 800 40
UAL Corp. . . . . . . . . . . . 300 23
--------
99
U.S. Government Agencies - 0.8%
Federal Home Loan Mortgage Corp. 100 5
Federal National Mortgage Assoc. 700 43
--------
48
--------
TOTAL COMMON STOCK- 89.7% 5,716
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 7.9%
Investment in joint repurchase
agreement with Goldman Sachs &
Co. dated 12/31/99, 3.159% due
01/03/00 (Secured by various
U.S. Treasury obligations and
U.S. Government Agency Bonds) . $ 500 500
------ -------
TOTAL INVESTMENTS- 97.6% 6,216
Cash and Receivables, less 2.4% 155
payables-
------ -------
NET ASSETS- 100.0% $ 6,371
====== =======
</TABLE>
* Non-income producing security.
See notes to financial statements
103
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 2.3%
Honeywell International, Inc. . . . . . . . 800 $ 46
Northrop Grumman Corp. . . . . . . . . . . . 400 22
United Technologies Corp. . . . . . . . . . 1,100 71
------
139
Auto and Truck Parts - 2.0%
Federal-Mogul Corp. . . . . . . . . . . . . 1,100 22
General Motors Corp. . . . . . . . . . . . . 400 29
General Motors Corp. - Cl. H . . . . . . . . 400 39
TRW, Inc. . . . . . . . . . . . . . . . . . 600 31
------
121
Automobile - 0.9%
Delphi Automotive Systems Corp. . . . . . . 1,100 17
Ford Motor Co. . . . . . . . . . . . . . . . 700 38
------
55
Banks - 9.2%
Bank One Corp. . . . . . . . . . . . . . . . 3,100 100
Mercantile Bankshares Corp. . . . . . . . . 2,100 67
Pacific Century Financial Corp. . . . . . . 6,900 129
U.S. Bancorp . . . . . . . . . . . . . . . . 4,900 117
UnionBanCal Corp. . . . . . . . . . . . . . 1,400 55
Wachovia Corp. . . . . . . . . . . . . . . . 1,400 95
------
563
Brokerage and Investment Management - 2.0%
A.G. Edwards, Inc. . . . . . . . . . . . . . 2,000 64
Legg Mason, Inc. . . . . . . . . . . . . . . 1,600 58
------
122
Chemicals - 2.2%
Air Products & Chemicals, Inc. . . . . . . . 600 20
Cabot Corp. . . . . . . . . . . . . . . . . 700 14
CK Witco Corp. . . . . . . . . . . . . . . . 669 9
Cytec Industries, Inc. * . . . . . . . . . . 500 11
E.I. du Pont de Nemours & Co. . . . . . . . 800 53
Great Lakes Chemical Corp. . . . . . . . . . 500 19
W.R. Grace & Co. . . . . . . . . . . . . . . 700 10
------
136
Commercial Services - 0.6%
Convergys Corp. * . . . . . . . . . . . . . 800 25
Danka Business Systems plc - ADR . . . . . . 900 11
------
36
Computer Equipment - 2.8%
3Com Corp. * . . . . . . . . . . . . . . . . 500 23
Compaq Computer Corp. . . . . . . . . . . . 800 22
International Business Machines Corp. . . . 600 65
Quantum Corp. - DLT & Storage * . . . . . . 2,200 33
Redback Networks, Inc. * . . . . . . . . . . 150 27
------
170
Computer Software and Services - 1.5%
Affiliated Computer Services, Inc. - Cl. A * 300 14
First Data Corp. . . . . . . . . . . . . . . 1,300 64
Unisys Corp. * . . . . . . . . . . . . . . . 500 16
------
94
Consumer - Miscellaneous - 0.6%
Clorox Co. . . . . . . . . . . . . . . . . . 700 35
Containers - 0.5%
Smurfit-Stone Container Corp. * . . . . . . 1,200 29
Diversified Operations - 2.1%
Eaton Corp. . . . . . . . . . . . . . . . . 600 43
El Paso Energy Corp. . . . . . . . . . . . . 1,100 43
Minnesota Mining & Manufacturing Co. . . . . 400 39
------
125
Electric Power - 3.8%
Calpine Corp. * . . . . . . . . . . . . . . 800 51
DQE, Inc. . . . . . . . . . . . . . . . . . 1,300 45
Duke Energy Co. . . . . . . . . . . . . . . 400 20
Edison International . . . . . . . . . . . . 300 8
Endesa S.A. - ADR . . . . . . . . . . . . . 1,100 22
Montana Power Co. . . . . . . . . . . . . . 500 18
Peco Energy Co. . . . . . . . . . . . . . . 600 21
Pinnacle West Capital Corp. . . . . . . . . 1,300 40
UtiliCorp United, Inc. . . . . . . . . . . . 400 8
------
233
Electrical Equipment - 0.7%
Unicom Corp. . . . . . . . . . . . . . . . . 1,200 40
Electronic Products and Services - 3.1%
Adaptec, Inc. * . . . . . . . . . . . . . . 500 25
Analog Devices, Inc. * . . . . . . . . . . . 700 65
Motorola, Inc. . . . . . . . . . . . . . . . 650 96
------
186
Financial Services - 6.3%
Associates First Capital Corp. - Cl. A * . . 1,800 49
Citigroup, Inc. . . . . . . . . . . . . . . 5,300 295
People's Bank - Bridgeport . . . . . . . . . 2,000 42
------
386
Food, Beverage and Tobacco - 2.7%
McCormick & Co., Inc. . . . . . . . . . . . 2,200 65
PepsiCo, Inc. . . . . . . . . . . . . . . . 900 32
Philip Morris Cos., Inc. . . . . . . . . . . 1,300 30
Sara Lee Corp. . . . . . . . . . . . . . . . 1,700 38
------
165
Health Care Products - 2.5%
Abbott Laboratories . . . . . . . . . . . . 900 33
American Home Products Corp. . . . . . . . . 800 31
Baxter International, Inc. . . . . . . . . . 600 38
Pharmacia & Upjohn, Inc. . . . . . . . . . . 1,100 49
------
151
Health Care Services - 0.3%
Columbia/HCA Healthcare Corp. . . . . . . . 700 21
</TABLE>
104
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Insurance - 6.5%
American International Group, Inc. . . . . . 1,000 $ 108
Cigna Corp. . . . . . . . . . . . . . . . . 1,100 89
Conseco, Inc. . . . . . . . . . . . . . . . 2,400 43
Marsh & McLennan Cos., Inc. . . . . . . . . 1,100 105
XL Capital, Ltd. - Cl. A . . . . . . . . . . 1,000 52
------
397
Leisure and Recreation - 1.1%
Eastman Kodak Co. . . . . . . . . . . . . . 300 20
Mattel, Inc. . . . . . . . . . . . . . . . . 3,100 40
Starwood Hotels & Resorts Worldwide, Inc. . 200 5
------
65
Machinery - 0.7%
Caterpillar, Inc. . . . . . . . . . . . . . 200 9
Ingersoll-Rand Co. . . . . . . . . . . . . . 600 33
------
42
Media - Publishing - 1.9%
AT&T Corp. - Liberty Media Group - Cl. A * . 1,300 74
Gannett Co., Inc. . . . . . . . . . . . . . 500 41
------
115
Media - TV / Radio - 2.0%
A.H. Belo Corp. . . . . . . . . . . . . . . 800 15
E.W. Scripps Co. - Cl. A . . . . . . . . . . 700 31
Generale Cable Corp. . . . . . . . . . . . . 2,700 21
Viacom, Inc. - Cl. B * . . . . . . . . . . . 900 54
------
121
Metals and Mining - 1.2%
Alcoa, Inc. . . . . . . . . . . . . . . . . 900 75
Natural Gas Distribution - 1.1%
Columbia Energy Group, Inc. . . . . . . . . 200 13
Enron Corp. . . . . . . . . . . . . . . . . 1,200 53
------
66
Oil - 5.0%
Conoco, Inc. - Cl. B . . . . . . . . . . . . 5,100 127
Repsol-YPF, S.A. - ADR . . . . . . . . . . . 3,800 88
Suncor Energy, Inc. . . . . . . . . . . . . 2,200 92
------
307
Oil and Natural Gas Exploration and Production - 3.8%
Chevron Corp. . . . . . . . . . . . . . . . 850 74
Penzoil-Quaker State Co. . . . . . . . . . . 7,100 72
Santa Fe International Corp. . . . . . . . . 1,200 31
Transocean Sedco Forex, Inc. . . . . . . . . 1,600 54
------
231
Paper and Forest Products - 2.3%
Bowater, Inc. . . . . . . . . . . . . . . . 700 38
Kimberly-Clark Corp. . . . . . . . . . . . . 600 39
Temple-Inland, Inc. . . . . . . . . . . . . 300 20
Weyerhaeuser Co. . . . . . . . . . . . . . . 600 43
------
140
Pollution Control - 0.1%
Republic Services, Inc. - Cl. A . . . . . . 500 7
Real Estate Investment Trust - 1.0%
Kimco Realty Corp. . . . . . . . . . . . . . 800 27
Liberty Property Trust . . . . . . . . . . . 900 22
Spieker Properties, Inc. . . . . . . . . . . 300 11
------
60
Retail - Department Stores - 2.8%
Dayton Hudson Corp. . . . . . . . . . . . . 1,000 74
Intimate Brands, Inc. . . . . . . . . . . . 2,300 99
------
173
Retail - Food - 0.8%
McDonald's Corp. . . . . . . . . . . . . . . 1,200 48
Telecommunication Equipment - 0.8%
American Tower Corp. - Cl. A . . . . . . . . 1,600 49
Telecommunication Services - 2.7%
Clear Channel Communications, Inc. * . . . . 200 18
EchoStar Communications Corp. - Cl. A * . . 1,000 98
Sprint PCS (PCS Group) * . . . . . . . . . . 500 51
------
167
Telephone - 12.1%
AT&T Corp. . . . . . . . . . . . . . . . . . 4,100 208
Bell Atlantic Corp. . . . . . . . . . . . . 3,200 197
MCI WorldCom, Inc. * . . . . . . . . . . . . 1,800 96
SBC Communications, Inc. . . . . . . . . . . 2,795 136
Sprint Corp. . . . . . . . . . . . . . . . . 1,500 101
------
738
Transportation Services - 2.4%
AMR Corp. * . . . . . . . . . . . . . . . . 500 33
Atlas Air, Inc. * . . . . . . . . . . . . . 1,200 33
Canadian National Railway Co. . . . . . . . 500 13
Mesaba Holdings, Inc. * . . . . . . . . . . 1,800 21
SkyWest, Inc. . . . . . . . . . . . . . . . 900 25
Werner Enterprises, Inc. . . . . . . . . . . 1,700 24
------
149
U.S. Government Agencies - 2.1%
Federal National Mortgage Assoc. . . . . . . 2,100 131
------
TOTAL COMMON STOCK- 96.5% 5,888
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.5%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . $ 216 $ 216
------ ------
TOTAL INVESTMENTS- 100.0% 6,104
Payables, less cash and receivables- (0.0)% (3)
------ ------
NET ASSETS- 100.0% $6,101
====== ======
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt
See notes to financial statements.
105
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Automobile- 1.1%
DaimlerChrysler NA Holding Co.
6.356% due 07/06/00 . . . . . . . . . . . $ 5,000 $ 5,020
Banks- 3.0%
PNC Bank NA - Notes
6.388% due 06/07/00 . . . . . . . . . . . 5,000 5,021
6.411% due 07/12/00 . . . . . . . . . . . 8,500 8,524
--------
13,545
Brokerage and Investment Management- 5.8%
Goldman Sachs Group, Inc. - Notes
5.15% due 04/19/00 . . . . . . . . . . . 8,000 8,082
6.162% due 08/07/00 . . . . . . . . . . . 7,000 7,065
6.252% due 07/24/00 . . . . . . . . . . . 2,000 2,023
6.271% due 07/31/00 . . . . . . . . . . . 2,000 2,022
6.291% due 01/31/00 . . . . . . . . . . . 575 581
Lehman Brothers Holdings, Inc. - Notes
6.781% due 06/13/00 . . . . . . . . . . . 5,000 5,021
7.08% due 05/22/00 . . . . . . . . . . . 1,300 1,338
--------
26,132
Commercial Services- 1.1%
Xerox Credit Corp. - Notes
6.043% due 12/08/00 . . . . . . . . . . . 5,000 5,038
Diversified Operations- 1.1%
Ciesco L.P.
6.482% due 08/14/00 . . . . . . . . . . . 5,000 5,015
Electronic Products and Services- 2.2%
Sunstrand Corp.
6.751% due 03/15/00 . . . . . . . . . . . 10,000 10,048
Financial Services- 2.2%
National Rural Utilities Cooperative
Finance Corp. - Notes
6.141% due 06/26/00 . . . . . . . . . . . 10,000 10,009
Personal and Commercial Lending- 4.6%
Ford Motor Credit Co. - Notes
6.173% due 10/02/00 . . . . . . . . . . . 7,000 6,997
General Motors Acceptance Corp. - Notes
6.1% due 09/01/00 . . . . . . . . . . . . 6,000 6,028
6.403% due 11/20/00 . . . . . . . . . . . 5,000 5,046
Household Finance Corp. - Sr. Notes
6.23% due 12/01/00 . . . . . . . . . . . 2,500 2,516
--------
20,587
--------
TOTAL PUBLICLY-TRADED BONDS- 21.1% 95,394
COMMERCIAL PAPER
Aerospace and Defense - 1.5%
United Technologies Corp.
5.75% due 01/20/00 . . . . . . . . . . . 6,564 6,544
Banks - 12.7%
ANZ (Delaware), Inc.
6.45% due 02/03/00 . . . . . . . . . . . 4,500 4,473
Bank of Nova Scotia
5.4% due 06/01/00 . . . . . . . . . . . . 6,030 6,223
5.94% due 10/02/00 . . . . . . . . . . . 7,000 7,092
Chase Manhattan Bank USA
5.08% due 02/01/00 . . . . . . . . . . . 5,000 5,171
Deutsche Bank AG
5.62% due 06/26/00 . . . . . . . . . . . 5,000 5,148
National Bank of Canada
5.14% due 04/24/00 . . . . . . . . . . . 20,000 20,720
Svenska Handelsbanken NY
5.23% due 03/01/00 . . . . . . . . . . . 4,000 4,178
5.28% due 03/03/00 . . . . . . . . . . . 4,000 4,178
--------
57,183
Brokerage and Investment Management - 4.5%
Lehman Brothers Holdings, Inc.
6.02% due 05/01/00 . . . . . . . . . . . 5,000 4,899
6.15% due 03/20/00 . . . . . . . . . . . 6,000 5,919
Merrill Lynch & Co., Inc.
5.55% due 01/24/00 . . . . . . . . . . . 2,424 2,415
Salomon Smith Barney Holdings, Inc.
5.65% due 02/04/00 . . . . . . . . . . . 7,000 6,964
--------
20,197
Chemicals - 1.5%
E.I. du Pont de Nemours & Co.
5.78% due 01/20/00 . . . . . . . . . . . 6,601 6,581
Consumer - Miscellaneous - 2.8%
Moriarty, Ltd.
6.1% due 01/19/00 . . . . . . . . . . . . 1,000 997
6.31% due 01/10/00 . . . . . . . . . . . 1,900 1,897
5.84% due 02/18/00 . . . . . . . . . . . 10,000 9,922
--------
12,816
Diversified Operations - 1.3%
Diageo Capital plc
5.85% due 01/18/00 . . . . . . . . . . . 5,992 5,975
Electric Power - 2.6%
Aes Hawaii, Inc.
6.55% due 01/11/00 . . . . . . . . . . . 3,000 2,995
Electricite de France
5.82% due 01/11/00 . . . . . . . . . . . 4,000 3,994
General Electric Credit Capital of Puerto
Rico
5.83% due 03/17/00 . . . . . . . . . . . 5,000 4,938
--------
11,927
Financial Services - 44.7%
Alpine Securitization Corp.
5.85% due 01/18/00 . . . . . . . . . . . 2,000 1,994
6.0% due 01/18/00 . . . . . . . . . . . . 2,816 2,808
6.0% due 02/01/00 . . . . . . . . . . . . 4,000 3,979
6.05% due 01/12/00 . . . . . . . . . . . 5,000 4,991
</TABLE>
106
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
COMMERCIAL PAPER - CONTINUED
Financial Services - Continued
Centric Capital Corp.
5.92% due 03/09/00 . . . . . . . . . . . $ 1,640 $ 1,622
6.03% due 01/24/00 . . . . . . . . . . . 5,000 4,981
6.03% due 01/27/00 . . . . . . . . . . . 3,885 3,868
6.04% due 01/06/00 . . . . . . . . . . . 5,000 4,996
Clipper Receivables Corp.
5.5% due 01/07/00 . . . . . . . . . . . . 4,500 4,496
5.93% due 01/31/00 . . . . . . . . . . . 5,035 5,010
6.08% due 01/24/00 . . . . . . . . . . . 4,489 4,472
6.24% due 01/21/00 . . . . . . . . . . . 3,000 2,990
6.4% due 01/07/00 . . . . . . . . . . . . 5,000 4,995
Corporate Asset Funding Co.
5.86% due 01/19/00 . . . . . . . . . . . 8,000 7,976
6.02% due 02/02/00 . . . . . . . . . . . 4,608 4,583
Corporate Recievables Corp.
6.03% due 01/19/00 . . . . . . . . . . . 6,702 6,682
6.482% due 01/18/00 . . . . . . . . . . . 5,000 5,014
Delaware Funding Corp.
5.93% due 01/18/00 . . . . . . . . . . . 4,129 4,117
Eagle Funding Capital Corp.
6.6% due 02/04/00 . . . . . . . . . . . . 1,798 1,787
6.7% due 02/10/00 . . . . . . . . . . . . 3,421 3,396
6.71% due 01/31/00 . . . . . . . . . . . 4,252 4,228
6.77% due 01/18/00 . . . . . . . . . . . 4,000 3,987
6.8% due 01/11/00 . . . . . . . . . . . . 3,003 2,997
7.25% due 01/10/00 . . . . . . . . . . . 1,255 1,253
Falcon Asset Securitization Corp.
5.9% due 01/21/00 . . . . . . . . . . . . 5,000 4,984
5.95% due 01/11/00 . . . . . . . . . . . 4,000 3,993
6.95% due 01/11/00 . . . . . . . . . . . 1,000 998
General Electric Capital Corp.
4.89% due 01/28/00 . . . . . . . . . . . 6,000 5,978
5.97% due 02/04/00 . . . . . . . . . . . 5,000 4,972
6.42% due 01/26/00 . . . . . . . . . . . 3,800 3,783
Greenwich Funding Corp.
5.5% due 02/07/00 . . . . . . . . . . . . 1,077 1,071
5.96% due 03/10/00 . . . . . . . . . . . 5,000 4,943
6.3% due 02/08/00 . . . . . . . . . . . . 1,200 1,192
Monte Rosa Capital Corp.
5.96% due 02/14/00 . . . . . . . . . . . 5,000 4,964
Norwest Financial, Inc.
6.5% due 01/31/00 . . . . . . . . . . . . 1,544 1,536
Receivables Capital Corp.
5.95% due 01/13/00 . . . . . . . . . . . 5,000 4,990
Sheffield Receivables Corp.
5.96% due 01/21/00 . . . . . . . . . . . 5,200 5,183
6.01% due 01/28/00 . . . . . . . . . . . 3,876 3,859
6.1% due 01/25/00 . . . . . . . . . . . . 7,000 6,971
6.7% due 01/14/00 . . . . . . . . . . . . 4,000 3,990
Sigma Finance, Inc.
5.14% due 02/10/00 . . . . . . . . . . . 5,000 5,232
5.78% due 04/14/00 . . . . . . . . . . . 4,000 3,933
5.9% due 02/16/00 . . . . . . . . . . . . 6,000 5,955
6.641% due 04/28/00 . . . . . . . . . . . 5,000 5,004
State Street Cayman Islands
5.0% due 01/03/00 . . . . . . . . . . . . 1,084 1,084
Windmill Funding Corp.
6.0% due 02/04/00 . . . . . . . . . . . . 6,150 6,115
6.23% due 01/10/00 . . . . . . . . . . . 13,000 12,979
6.7% due 01/20/00 . . . . . . . . . . . . 1,000 996
--------
201,927
Leisure and Recreation - 3.1%
K2 USA LLC
6.0% due 04/03/00 . . . . . . . . . . . . 1,500 1,477
6.02% due 03/01/00 . . . . . . . . . . . 7,392 7,317
6.08% due 01/18/00 . . . . . . . . . . . 5,000 4,986
--------
13,780
Personal and Commercial Lending - 0.5%
Toyota Motor Credit Co.
6.0% due 01/13/00 . . . . . . . . . . . . 2,397 2,392
Telecommunication Services - 1.1%
American Telephone & Telegraph Co.
6.136% due 07/13/00 . . . . . . . . . . . 5,000 5,067
Telephone - 2.2%
SBC Communications, Inc.
5.84% due 01/28/00 . . . . . . . . . . . 10,000 9,956
--------
TOTAL COMMERCIAL PAPER- 78.5% 354,345
------- --------
TOTAL INVESTMENTS- 99.6% 449,739
Cash and Receivables, less Payables- 0.4% 1,496
------- --------
NET ASSETS- 100.0% $451,235
======= ========
</TABLE>
See notes to financial statements.
107
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 2.2%
General Dynamics Corp. . . . . . . . . . . 37,900 $ 1,999
Auto and Truck Parts - 5.0%
General Motors Corp. - Cl. H . . . . . . . 18,300 1,757
Lear Corp. * . . . . . . . . . . . . . . . 57,800 1,849
Navistar International Corp., Inc. - Cl. B 21,400 1,014
-------
4,620
Banks - 2.5%
FleetBoston Financial Corp. . . . . . . . 27,800 968
Valley National Bancorp . . . . . . . . . 46,000 1,288
-------
2,256
Business Services - 4.4%
Comdisco, Inc. . . . . . . . . . . . . . . 76,100 2,835
Dun & Bradstreet Corp. . . . . . . . . . . 41,600 1,227
-------
4,062
Chemicals - 4.7%
Engelhard Corp. . . . . . . . . . . . . . 56,400 1,065
Praxair, Inc. . . . . . . . . . . . . . . 36,800 1,851
W.R. Grace & Co. . . . . . . . . . . . . . 104,200 1,446
-------
4,362
Computer Software and Services - 9.0%
Cabletron Systems, Inc. * . . . . . . . . 39,900 1,037
Cadence Design Systems, Inc. * . . . . . . 88,900 2,134
Ceridian Corp. * . . . . . . . . . . . . . 92,400 1,992
GetThere.com, Inc. * . . . . . . . . . . . 12,000 483
Parametric Technology Corp. * . . . . . . 77,800 2,106
PSINet, Inc. * . . . . . . . . . . . . . . 9,100 562
-------
8,314
Containers - 1.9%
Sealed Air Corp. * . . . . . . . . . . . . 8,800 456
Smurfit-Stone Container Corp. * . . . . . 53,100 1,301
-------
1,757
Diversified Operations - 0.8%
Eaton Corp. . . . . . . . . . . . . . . . 10,600 770
Electric Power - 2.2%
Cinergy Corp. . . . . . . . . . . . . . . 24,800 598
Niagara Mohawk Holdings, Inc. . . . . . . 100,600 1,402
-------
2,000
Electrical Equipment - 2.7%
UCAR International, Inc. * . . . . . . . . 75,900 1,352
Unicom Corp. . . . . . . . . . . . . . . . 35,100 1,176
-------
2,528
Electronic Products and Services - 1.9%
National Semiconductor Corp. * . . . . . . 28,900 1,237
Waters Corp. * . . . . . . . . . . . . . . 9,300 493
-------
1,730
Energy - Alternative Source - 1.7%
Dynegy, Inc. . . . . . . . . . . . . . . . 65,000 1,580
Financial Services - 1.7%
Finova Group, Inc. . . . . . . . . . . . . 44,900 1,594
Health Care Products - 3.2%
Becton, Dickinson & Co. . . . . . . . . . 43,900 1,174
Genzyme Corp. (General Division) * . . . . 39,000 1,755
-------
2,929
Health Care Services - 1.9%
Wellpoint Health Networks, Inc. * . . . . 26,500 1,747
Household Appliances / Furnishings - 2.0%
Maytag Corp. . . . . . . . . . . . . . . . 37,600 1,805
Insurance - 3.8%
Ambac Financial Group, Inc. . . . . . . . 24,000 1,252
Aon Corp. . . . . . . . . . . . . . . . . 28,300 1,132
XL Capital, Ltd. - Cl. A . . . . . . . . . 22,200 1,152
-------
3,536
Leisure and Recreation - 0.9%
Starwood Hotels & Resorts Worldwide, Inc. 37,100 872
Machinery - 3.3%
SPX Corp. . . . . . . . . . . . . . . . . 24,200 1,956
W.W. Grainger, Inc. . . . . . . . . . . . 23,200 1,109
-------
3,065
Media - Publishing - 1.7%
AT&T Corp. - Liberty Media Group - Cl. A * 27,200 1,544
Media - TV / Radio - 4.2%
A.H. Belo Corp. . . . . . . . . . . . . . 90,400 1,723
E.W. Scripps Co. - Cl. A . . . . . . . . . 21,000 941
The News Corp., Ltd. - ADR . . . . . . . . 35,300 1,181
-------
3,845
Metal Product and Fabrication - 1.3%
Reynolds Metals Co. . . . . . . . . . . . 15,900 1,218
Metals and Mining - 0.3%
Phelps Dodge Corp. . . . . . . . . . . . . 3,900 262
Natural Gas Distribution - 1.2%
Williams Cos., Inc. . . . . . . . . . . . 36,500 1,116
Oil - 1.0%
Tosco Corp. . . . . . . . . . . . . . . . 33,300 905
Oil and Natural Gas Exploration and
Production - 9.2%
Anadarko Petroleum Corp. . . . . . . . . . 36,400 1,242
Apache Corp. . . . . . . . . . . . . . . . 36,000 1,330
Coastal Corp. . . . . . . . . . . . . . . 42,400 1,503
Kinder Morgan, Inc. . . . . . . . . . . . 33,600 678
Noble Drilling Corp. * . . . . . . . . . . 28,500 933
Transocean Sedco Forex, Inc. . . . . . . . 41,300 1,391
USX-Marathon Group . . . . . . . . . . . . 57,900 1,430
-------
8,507
</TABLE>
108
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Paper and Forest Products - 3.1%
Bowater, Inc. . . . . . . . . . . . . . . 29,000 $ 1,575
Fort James Corp. . . . . . . . . . . . . . 46,900 1,284
-------
2,859
Personal and Commercial Lending - 2.9%
Countrywide Credit Industries, Inc. . . . 60,700 1,533
SLM Holding Corp. . . . . . . . . . . . . 26,200 1,107
-------
2,640
Real Estate Operations - 1.6%
IndyMac Mortgage Holdings, Inc. . . . . . 114,000 1,454
Retail - Department Stores - 3.2%
Consolidated Stores Corp. * . . . . . . . 91,400 1,485
Harcourt General, Inc. . . . . . . . . . . 35,600 1,433
-------
2,918
Steel - 1.5%
AK Steel Holding Corp. . . . . . . . . . . 73,700 1,391
Telecommunication Equipment - 2.1%
American Tower Corp. - Cl. A . . . . . . . 58,800 1,797
ANTEC Corp. . . . . . . . . . . . . . . . 2,500 91
-------
1,888
Telecommunication Services - 4.8%
EchoStar Communications Corp. - Cl. A * . 12,100 1,180
Global Crossing, Ltd. . . . . . . . . . . 36,300 1,815
Winstar Communications, Inc. * . . . . . . 19,000 1,429
-------
4,424
Telephone - 0.5%
Metromedia Fiber Network, Inc. - Cl. A * . 10,200 489
Transportation Services - 3.1%
Continental Airlines, Inc. - Cl. B * . . . 32,700 1,451
Kansas City Southern Industries, Inc. . . 19,100 1,425
-------
2,876
-------
TOTAL COMMON STOCK- 97.5% 89,862
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.8%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . $ 3,503 3,503
TOTAL INVESTMENTS- 101.3% 93,365
Payables, less cash and receivables- (1.3)% (1,215)
-------- -------
NET ASSETS- 100.0% $92,150
======== =======
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
109
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Automobile - 2.2%
United Rentals, Inc. * . . . . . . . . . 235,700 $ 4,036
Banks - 5.8%
Mercantile Bankshares Corp. . . . . . . . 90,000 2,874
National Commerce Bancorporation . . . . 111,800 2,536
Westamerica Bancorporation . . . . . . . 65,000 1,816
Wilmington Trust Trust Corp. . . . . . . 70,000 3,378
--------
10,604
Brokerage and Investment Management - 0.6%
Investment Technology Group, Inc. . . . . 38,400 1,104
Business Services - 2.3%
American Management Systems, Inc. * . . . 133,300 4,182
Chemicals - 3.9%
MacDermid, Inc. . . . . . . . . . . . . . 71,000 2,916
Minerals Technologies, Inc. . . . . . . . 102,000 4,086
--------
7,002
Commercial Services - 6.4%
ACNielson Corp. * . . . . . . . . . . . . 71,500 1,761
DeVry, Inc. * . . . . . . . . . . . . . . 106,000 1,974
G & K Services, Inc. - Cl. A . . . . . . 127,200 4,118
NCO Group, Inc. * . . . . . . . . . . . . 15,300 461
NOVA Corp. - Georgia * . . . . . . . . . 72,900 2,301
Tetra Tech, Inc. * . . . . . . . . . . . 62,900 967
--------
11,582
Computer Equipment - 1.6%
The BISYS Group, Inc. * . . . . . . . . . 44,900 2,930
Computer Software and Services - 24.4%
Acxiom Corp. * . . . . . . . . . . . . . 160,000 3,840
Affiliated Computer Services, Inc. -
Cl. A *. . . . . . . . . . . . . . . . . 34,200 1,573
Cognos, Inc. * . . . . . . . . . . . . . 20,000 923
DST Systems, Inc. * . . . . . . . . . . . 82,400 6,288
Fiserv, Inc. . . . . . . . . . . . . . . 83,800 3,211
Macromedia, Inc. * . . . . . . . . . . . 19,400 1,419
National Instruments Corp. * . . . . . . 33,000 1,262
Policy Management Systems Corp. * . . . . 67,700 1,731
Shared Medical Systems Corp. . . . . . . 118,300 6,026
Sterling Software, Inc. * . . . . . . . . 244,100 7,689
SunGard Data Systems, Inc. . . . . . . . 96,400 2,289
Synopsys, Inc. * . . . . . . . . . . . . 69,600 4,646
Systems & Computer Technology Corp. * . . 177,000 2,876
Verity, Inc. * . . . . . . . . . . . . . 15,000 638
--------
44,411
Consumer - Miscellaneous - 3.5%
Catalina Marketing Corp. * . . . . . . . 55,000 6,366
Containers - 1.3%
Bemis Co., Inc. . . . . . . . . . . . . . 67,000 2,337
Cosmetics and Personal Care Products - 0.5%
AptarGroup, Inc. . . . . . . . . . . . . 39,200 985
Electric Power - 2.5%
Montana Power Co. . . . . . . . . . . . . 125,300 4,519
Electrical Equipment - 1.9%
Littelfuse, Inc. * . . . . . . . . . . . 142,100 3,448
Electronic Products and Services - 7.6%
C-Cube Microsystems, Inc. * . . . . . . . 37,400 2,328
Dallas Semiconductor Corp. . . . . . . . 81,300 5,239
Sterling Commerce, Inc. * . . . . . . . . 80,300 2,735
Waters Corp. * . . . . . . . . . . . . . 54,500 2,889
Xilinx, Inc. * . . . . . . . . . . . . . 15,800 718
--------
13,909
Food, Beverage and Tobacco - 2.8%
Beringer Wine Estates Holdings * . . . . 126,800 5,056
Health Care Products - 4.8%
ALZA Corp. * . . . . . . . . . . . . . . 45,000 1,558
Biomet, Inc. . . . . . . . . . . . . . . 62,500 2,500
Genzyme Corp. (General Division) * . . . 91,200 4,104
Haemonetics Corp. * . . . . . . . . . . . 20,800 495
--------
8,657
Health Care Services - 1.7%
Covance, Inc. * . . . . . . . . . . . . . 293,500 3,173
Household Appliances / Furnishings - 4.2%
Ethan Allen Interiors, Inc. . . . . . . . 89,500 2,870
Herman Miller, Inc. . . . . . . . . . . . 157,400 3,620
Leggett & Platt, Inc. . . . . . . . . . . 50,000 1,072
--------
7,562
Insurance - 2.3%
Reinsurance Group of America . . . . . . 153,740 4,266
Leisure and Recreation - 2.2%
Speedway Motorsports, Inc. * . . . . . . 140,900 3,919
Media - TV / Radio - 0.6%
Univision Communications, Inc. - Cl. A * 10,500 1,073
Oil - Equipment and Services - 1.0%
Hanover Compressor Co. * . . . . . . . . 46,200 1,744
Pollution Control - 1.8%
Donaldson Co., Inc. . . . . . . . . . . . 33,200 799
Ionics, Inc. * . . . . . . . . . . . . . 88,900 2,500
--------
3,299
Retail - Department Stores - 3.4%
Bed Bath & Beyond, Inc. * . . . . . . . . 100,000 3,475
Family Dollar Stores, Inc. . . . . . . . 165,500 2,700
--------
6,175
Retail - Food - 2.0%
Whole Foods Market, Inc. * . . . . . . . 80,100 3,715
Telecommunication Equipment - 2.1%
Symbol Technologies, Inc. . . . . . . . . 59,000 3,750
Transportation Services - 2.2%
Air Express International Corp. . . . . . 54,100 1,748
</TABLE>
110
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Transportation Services - Continued
C.H. Robinson Worldwide, Inc. . . . . . . 58,400 $ 2,322
--------
4,070
--------
TOTAL COMMON STOCK- 95.6% 173,874
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.1%
Investment in joint trading account
(Note B)
5.242% due 01/03/00 . . . . . . . . . . $ 9,219 9,219
--------- --------
TOTAL INVESTMENTS- 100.7% 183,093
Payables, less cash and receivables- (0.7%) (1,162)
--------- --------
NET ASSETS- 100.0% $181,931
========= ========
</TABLE>
* Non-income producing security.
See notes to financial statements.
111
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.6%
Raytheon Co. - Notes
6.75% due 08/15/07 . . . . . . . . . . . . . $ 200 $ 186
United Technologies Corp. - Debs.
8.875% due 11/15/19 . . . . . . . . . . . . . 50 56
-------
242
Auto and Truck Parts - 0.2%
Dana Corp. - Notes
7.0% due 03/15/28 . . . . . . . . . . . . . . 75 66
Automobile - 0.5%
DaimlerChrysler NA Holding Co.
6.9% due 09/01/04 . . . . . . . . . . . . . . 150 149
Delphi Automotive Systems Corp. - Debs.
7.125% due 05/01/29 . . . . . . . . . . . . . 50 44
-------
193
Banks - 4.2%
African Development Bank - Sub. Notes
6.875% due 10/15/15 . . . . . . . . . . . . . 35 33
Bank One Corp. - Sr. Notes
5.625% due 02/17/04 . . . . . . . . . . . . . 150 141
BankAmerica Corp. - Sub. Notes
6.5% due 03/15/06 . . . . . . . . . . . . . . 150 144
Chase Manhattan Corp. - Sub. Notes
7.125% due 02/01/07 . . . . . . . . . . . . . 225 220
First Union Corp. - Sub. Notes
8.125% due 06/24/02 . . . . . . . . . . . . . 230 235
Fleet Financial Group - Sub. Debs.
6.7% due 07/15/28 . . . . . . . . . . . . . . 75 65
Golden West Financial Corp. - Sub. Notes
6.7% due 07/01/02 . . . . . . . . . . . . . . 150 148
InterAmerican Development Bank - Debs.
8.5% due 03/15/11 . . . . . . . . . . . . . . 200 220
Korea Development Bank - Bonds
7.375% due 09/17/04 . . . . . . . . . . . . . 120 118
National City Bank of Pennsylvania - Sub.
Notes 7.25% due 10/21/11 . . . . . . . . .. 50 48
Royal Bank of Scotland plc - Sub. Notes
6.4% due 04/01/09 . . . . . . . . . . . . . . 50 46
Wachovia Corp. - Sub. Notes
5.625% due 12/15/08 . . . . . . . . . . . . . 75 65
Wells Fargo & Co. - Sub. Notes
6.875% due 04/01/06 . . . . . . . . . . . . . 150 145
-------
1,628
Brokerage and Investment Management - 1.1%
Lehman Brothers Holdings, Inc. - Notes
8.5% due 05/01/07 . . . . . . . . . . . . . . 100 103
Merrill Lynch & Co., Inc. - Notes
8.0% due 06/01/07 . . . . . . . . . . . . . . 200 204
Morgan Stanley, Dean Witter, Discover & Co.
6.875% due 03/01/07 . . . . . . . . . . . . . 100 96
-------
403
Business Services - 0.4%
Comdisco, Inc. - Notes
6.125% due 01/15/03 . . . . . . . . . . . . . 150 144
Chemicals - 1.1%
ICI Wilmington, Inc. - Debs.
8.75% due 05/01/01 . . . . . . . . . . . . . 300 306
Morton International, Inc. - Debs.
9.25% due 06/01/20 . . . . . . . . . . . . . 40 44
Rohm & Haas Co. - Notes
7.4% due 07/15/09 . . . . . . . . . . . . . . 80 79
-------
429
Computer Equipment - 0.2%
International Business Machines Corp. - Debs.
7.0% due 10/30/25 . . . . . . . . . . . . . . 100 94
Consumer - Miscellaneous - 0.3%
Fortune Brands, Inc. - Debs.
7.875% due 01/15/23 . . . . . . . . . . . . . 100 99
Diversified Operations - 1.0%
Diageo Capital plc
6.125% due 08/15/05 . . . . . . . . . . . . . 200 189
John Deere Capital Corp. - Notes
6.0% due 02/15/09 . . . . . . . . . . . . . . 60 53
Seagram , Ltd.
8.35% due 01/15/22 . . . . . . . . . . . . . 50 51
Tyco International Group SA
6.375% due 06/15/05 . . . . . . . . . . . . . 80 75
-------
368
Electric Power - 1.7%
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 . . . . . . . . . . . . . 60 62
Duke Energy Co. - 1st Ref. Mtg.
6.75% due 08/01/25 . . . . . . . . . . . . . 100 85
Enersis SA - Notes
6.9% due 12/01/06 . . . . . . . . . . . . . . 30 27
Florida Power & Light Co.
7.75% due 02/01/23 . . . . . . . . . . . . . 50 47
Ontario Hydro - Local Govt. Gtd.
6.1% due 01/30/08 . . . . . . . . . . . . . . 100 93
Philadelphia Electric Co. - 1st Ref. Mtg.
7.125% due 09/01/02 . . . . . . . . . . . . . 100 100
Tennessee Valley Authority
6.75% due 11/01/25 . . . . . . . . . . . . . 100 93
Virginia Electric Power Co. - 1st Mtge.
7.625% due 07/01/07 . . . . . . . . . . . . . 150 150
-------
657
Financial Services - 3.8%
Ameritech Capital Funding Corp.
6.875% due 10/15/27 . . . . . . . . . . . . . 60 54
CIT Group, Inc. - Notes
7.25% due 08/15/05 . . . . . . . . . . . . . 100 99
Citicorp Capital II
8.015% due 02/15/27 . . . . . . . . . . . . . 100 94
</TABLE>
112
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS - CONTINUED
Financial Services - Continued
Finova Capital Corp. - Notes
7.25% due 11/08/04 . . . . . . . . . . . . . $ 225 $ 223
Ford Capital B.V. - Debs.
9.5% due 06/01/10 . . . . . . . . . . . . . . 150 167
General Electric Capital Corp. - Debs.
8.75% due 05/21/07 . . . . . . . . . . . . . 150 161
KFW International Finance - Debs.
9.125% due 05/15/01 . . . . . . . . . . . . . 300 310
Morgan Stanley, Dean Witter, Discover & Co. -
Notes
6.875% due 03/01/03 . . . . . . . . . . . . . 200 197
Sumitomo Bank International Finance NV - Notes
8.5% due 06/15/09 . . . . . . . . . . . . . . 100 102
Washington Mutual Capital I
8.375% due 06/01/27 . . . . . . . . . . . . . 60 57
-------
1,464
Food, Beverage and Tobacco - 0.9%
Coca-Cola Enterprises, Inc. - Debs.
8.5% due 02/01/22 . . . . . . . . . . . . . . 100 106
Conagra, Inc. - Debs.
9.75% due 03/01/21 . . . . . . . . . . . . . 75 87
Food Lion, Inc. - Notes
8.05% due 04/15/27 . . . . . . . . . . . . . 50 46
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 . . . . . . . . . . . . . 100 101
-------
340
Foreign Governmental - 2.5%
Government of New Zealand - Debs.
8.75% due 12/15/06 . . . . . . . . . . . . . 120 131
Hydro-Quebec
8.4% due 01/15/22 . . . . . . . . . . . . . . 100 106
Kingdom of Sweden - Debs.
12.0% due 02/01/10 . . . . . . . . . . . . . 75 101
Malaysia - Bonds
8.75% due 06/01/09 . . . . . . . . . . . . . 50 52
Province of Manitoba - Debs.
6.875% due 09/15/02 . . . . . . . . . . . . . 200 199
Province of Newfoundland - Debs.
9.0% due 10/15/21 . . . . . . . . . . . . . . 60 67
Province of Ontario
8.0% due 10/17/01 . . . . . . . . . . . . . . 200 204
Republic of Korea - Unsub.
8.75% due 04/15/03 . . . . . . . . . . . . . 85 88
-------
948
Insurance - 0.7%
Aetna Services, Inc.
7.625% due 08/15/26 . . . . . . . . . . . . . 100 89
Hartford Life, Inc. Debs.
7.65% due 06/15/27 . . . . . . . . . . . . . 50 48
Torchmark, Inc. - Debs.
8.25% due 08/15/09 . . . . . . . . . . . . . 100 100
Travelers Property Casualty Corp. - Sr. Notes
7.75% due 04/15/26 . . . . . . . . . . . . . 50 49
-------
286
Machinery - 0.5%
Reliance Electric Co. - Notes
6.8% due 04/15/03 . . . . . . . . . . . . . . 200 199
Media - TV / Radio - 1.2%
News America Holdings, Inc. - Debs.
7.7% due 10/30/25 . . . . . . . . . . . . . . 100 93
TCI Communciations, Inc. - Sr. Notes
7.125% due 02/15/28 . . . . . . . . . . . . . 70 64
The Walt Disney Co. - Sr. Notes
6.75% due 03/30/06 . . . . . . . . . . . . . 200 196
Time Warner Entertainment, Inc. - Sr. Notes
8.375% due 07/15/33 . . . . . . . . . . . . . 100 104
-------
457
Metals and Mining - 0.5%
Noranda, Inc. - Debs.
7.0% due 07/15/05 . . . . . . . . . . . . . . 200 189
Natural Gas Distribution - 0.5%
Enron Corp. - Notes
6.75% due 09/15/04 . . . . . . . . . . . . . 100 97
Tennessee Gas Pipeline - Bonds
7.5% due 04/01/17 . . . . . . . . . . . . . . 100 94
-------
191
Oil - 0.8%
Atlantic Richfield Co. (ARCO) - Notes
5.55% due 04/15/03 . . . . . . . . . . . . . 75 72
Conoco, Inc. - Sr. Notes
6.95% due 04/15/29 . . . . . . . . . . . . . 90 81
Occidental Petroleum Corp. - Debs.
7.2% due 04/01/28 . . . . . . . . . . . . . . 40 36
Tosco Corp. - Notes
7.625% due 05/15/06 . . . . . . . . . . . . . 115 112
-------
301
Oil - Equipment and Services - 0.2%
Petroleum-Geo Services ASA - Sr. Notes
6.625% due 03/30/08 . . . . . . . . . . . . . 100 92
Oil and Natural Gas Exploration and Production - 0.4%
Phillips Petroleum Co. - Debs.
6.65% due 07/15/18 . . . . . . . . . . . . . 50 45
Saga Petroleum ASA - Debs.
7.25% due 09/23/27 . . . . . . . . . . . . . 75 68
Union Oil Co. of California
7.5% due 02/15/29 . . . . . . . . . . . . . . 60 56
-------
169
Paper and Forest Products - 0.5%
Bowater, Inc. - Debs.
9.0% due 08/01/09 . . . . . . . . . . . . . . 100 106
</TABLE>
113
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS - CONTINUED
Paper and Forest Products - Continued
Champion International Corp. - Debs.
7.35% due 11/01/25 . . . . . . . . . . . . . $ 50 $ 45
Westvaco Corp. - Notes
7.1% due 11/15/09 . . . . . . . . . . . . . . 35 34
-------
185
Personal and Commercial Lending - 2.2%
Aristar, Inc. - Sr. Notes
6.5% due 11/15/03 . . . . . . . . . . . . . . 200 194
CitiFinacial Credit Co. - Notes
5.9% due 09/01/03 . . . . . . . . . . . . . . 150 144
General Motors Acceptance Corp. - Notes
9.625% due 12/15/01 . . . . . . . . . . . . . 350 366
Household Finance Corp. - Notes
6.5% due 11/15/08 . . . . . . . . . . . . . . 100 92
Toyota Motor Credit Corp. - Notes
5.5% due 12/15/08 . . . . . . . . . . . . . . 60 52
-------
848
Real Estate Investment Trust - 0.1%
Spieker Properties, Inc. - Debs.
7.5% due 10/01/27 . . . . . . . . . . . . . . 40 35
Retail - Department Stores - 0.5%
Dayton Hudson Corp. - Debs.
6.75% due 01/01/28 . . . . . . . . . . . . . 25 22
Gap, Inc. - Notes
6.9% due 09/15/07 . . . . . . . . . . . . . . 100 97
Wal-Mart Stores, Inc. - Debs.
6.75% due 10/15/23 . . . . . . . . . . . . . 100 90
-------
209
Retail - Food - 0.3%
Albertson's, Inc. - Notes
6.625% due 06/01/28 . . . . . . . . . . . . . 50 43
McDonald's Corp. - Sub. Debs.
7.31% due 09/15/27 . . . . . . . . . . . . . 60 56
-------
99
Telecommunication Equipment - 0.4%
Lucent Technologies, Inc. - Debs.
6.5% due 01/15/28 . . . . . . . . . . . . . . 50 44
Lucent Technologies, Inc. - Notes
7.25% due 07/15/06 . . . . . . . . . . . . . 100 100
-------
144
Telecommunication Services - 0.8%
Bell Canada
7.75% due 04/01/06 . . . . . . . . . . . . . 125 127
BellSouth Telecommunications, Inc. - Debs.
7.0% due 10/01/25 . . . . . . . . . . . . . . 100 91
Cable & Wireless Communication - Notes
6.75% due 03/06/08 . . . . . . . . . . . . . 75 75
-------
293
Telephone - 2.3%
ALLTEL Corp. - Sr. Notes
7.6% due 04/01/09 . . . . . . . . . . . . . . 100 100
AT&T Corp. - Notes
6.0% due 03/15/09 . . . . . . . . . . . . . . 200 182
6.5% due 03/15/29 . . . . . . . . . . . . . . 60 52
Comcast Cable Communications - Notes
8.875% due 05/01/17 . . . . . . . . . . . . . 75 82
MCI Worldcom, Inc. - Sr. Notes
6.4% due 08/15/05 . . . . . . . . . . . . . . 200 192
New York Telephone Co. - Debs.
7.25% due 02/15/24 . . . . . . . . . . . . . 100 89
SBC Communications Capital Corp. - Debs.
5.875% due 06/01/03 . . . . . . . . . . . . . 100 97
South Carolina Electric & Gas - 1st Mtge.
7.5% due 06/15/23 . . . . . . . . . . . . . . 100 91
-------
885
Transportation Services - 1.3%
American Airlines, Inc. - Pass Through
Certificates
7.024% due 10/15/09 . . . . . . . . . . . . . 60 58
CSX Corp. - Debs.
7.45% due 05/01/07 . . . . . . . . . . . . . 125 123
Delta Air Lines, Inc. - Debs.
10.375% due 12/15/22 . . . . . . . . . . . . 100 117
Laidlaw, Inc. - Debs.
8.75% due 04/15/25 . . . . . . . . . . . . . 100 93
Norfolk Southern Corp. - Notes
7.35% due 05/15/07 . . . . . . . . . . . . . 125 122
-------
513
U.S. Government Agencies - 13.6%
Federal Home Loan Bank
5.58% due 08/17/01 . . . . . . . . . . . . . 300 296
Federal Home Loan Mortgage Corp.
5.75% due 07/15/03 . . . . . . . . . . . . . 800 775
5.75% due 04/15/08 . . . . . . . . . . . . . 100 92
6.3% due 06/01/04 . . . . . . . . . . . . . . 300 292
7.1% due 04/10/07 . . . . . . . . . . . . . . 1,500 1,501
Federal National Mortgage Assoc.
4.75% due 11/14/03 . . . . . . . . . . . . . 175 162
5.125% due 02/13/04 . . . . . . . . . . . . . 230 216
5.375% due 03/15/02 . . . . . . . . . . . . . 450 439
5.625% due 05/14/04 . . . . . . . . . . . . . 450 430
5.875% due 04/23/04 . . . . . . . . . . . . . 300 287
6.0% due 05/15/08 . . . . . . . . . . . . . . 40 37
6.16% due 08/07/28 . . . . . . . . . . . . . 125 109
6.19% due 02/19/09 . . . . . . . . . . . . . 120 110
6.25% due 05/15/29 . . . . . . . . . . . . . 140 125
6.5% due 04/29/09 . . . . . . . . . . . . . . 200 187
Financing Corp. - Bonds
8.6% due 09/26/19 . . . . . . . . . . . . . . 150 171
-------
5,229
</TABLE>
114
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Governmental - 51.8%
U.S. Treasury - Bonds
6.5% due 11/15/26 . . . . . . . . . . . . . . $ 25 $ 24
6.75% due 08/15/26 . . . . . . . . . . . . . 275 276
7.625% due 11/15/22 . . . . . . . . . . . . . 1,340 1,470
8.125% due 08/15/21 . . . . . . . . . . . . . 395 453
8.75% due 05/15/17 . . . . . . . . . . . . . 1,100 1,314
8.75% due 08/15/20 . . . . . . . . . . . . . 1,100 1,333
9.25% due 02/15/16 . . . . . . . . . . . . . 300 370
11.125% due 08/15/03 . . . . . . . . . . . . 2,000 2,293
11.25% due 02/15/15 . . . . . . . . . . . . . 260 368
11.75% due 02/15/10 . . . . . . . . . . . . . 250 304
11.75% due 11/15/14 . . . . . . . . . . . . . 215 291
U.S. Treasury - Notes
6.5% due 05/31/02 . . . . . . . . . . . . . . 1,600 1,608
6.875% due 05/15/06 . . . . . . . . . . . . . 1,525 1,552
7.5% due 11/15/01 . . . . . . . . . . . . . . 800 817
7.5% due 05/15/02 . . . . . . . . . . . . . . 450 462
4.75% due 02/15/04 . . . . . . . . . . . . . 650 613
4.75% due 11/15/08 . . . . . . . . . . . . . 860 759
5.625% due 05/15/08 . . . . . . . . . . . . . 875 823
6.125% due 07/31/00 . . . . . . . . . . . . . 1,250 1,252
6.125% due 08/15/07 . . . . . . . . . . . . . 200 195
6.375% due 03/31/01 . . . . . . . . . . . . . 500 501
6.375% due 08/15/02 . . . . . . . . . . . . . 960 962
7.875% due 11/15/04 . . . . . . . . . . . . . 720 761
8.0% due 05/15/01 . . . . . . . . . . . . . . 1,100 1,125
-------
19,926
-------
TOTAL PUBLICLY-TRADED BONDS- 97.1% 37,325
SHORT-TERM INVESTMENTS - 2.6%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . . 985 985
------- -------
TOTAL INVESTMENTS- 99.7% 38,310
Cash and Receivables, less payables- 0.3% 126
------- -------
NET ASSETS- 100.0% $38,436
======= =======
</TABLE>
See notes to financial statements.
115
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 3.3%
Honeywell International, Inc. . . . . . . . 3,375 $ 195
United Technologies Corp. . . . . . . . . . 4,700 305
-------
500
Banks - 0.6%
Bank of America Corp. . . . . . . . . . . . 1,700 85
Brokerage and Investment Management - 4.6%
Goldman Sachs Group, Inc. . . . . . . . . . 700 66
Merrill Lynch & Co., Inc. . . . . . . . . . 1,400 117
Morgan Stanley, Dean Witter, Discover & Co. 3,600 514
-------
697
Computer Equipment - 9.2%
Dell Computer Corp. * . . . . . . . . . . . 15,500 790
Intel Corp. . . . . . . . . . . . . . . . . 7,300 601
-------
1,391
Computer Software and Services - 10.5%
America Online, Inc. * . . . . . . . . . . . 3,600 272
EMC Corp. * . . . . . . . . . . . . . . . . 2,500 273
IMS Health, Inc. . . . . . . . . . . . . . . 3,300 90
Microsoft Corp. . . . . . . . . . . . . . . 5,400 630
Oracle Corp. * . . . . . . . . . . . . . . . 1,300 146
Sun Microsystems, Inc. * . . . . . . . . . . 600 46
Yahoo!, Inc. * . . . . . . . . . . . . . . . 300 130
-------
1,587
Cosmetics and Personal Care Products - 1.0%
Colgate-Palmolive Co. . . . . . . . . . . . 2,300 150
Diversified Operations - 6.7%
Costco Wholesale Corp. * . . . . . . . . . . 2,900 264
General Electric Co. . . . . . . . . . . . . 1,200 186
Tyco International, Ltd. . . . . . . . . . . 14,300 556
-------
1,006
Electronic Products and Services - 6.7%
Applied Materials, Inc. * . . . . . . . . . 1,900 241
Cisco Systems, Inc. * . . . . . . . . . . . 5,850 626
Solectron Corp. * . . . . . . . . . . . . . 1,500 143
-------
1,010
Financial Services - 5.7%
Associates First Capital Corp. - Cl. A * . . 15,700 431
Citigroup, Inc. . . . . . . . . . . . . . . 7,600 422
-------
853
Health Care Products - 9.7%
Bristol-Myers Squibb Co. . . . . . . . . . . 5,000 321
Medtronic, Inc. . . . . . . . . . . . . . . 4,600 168
Pfizer, Inc. . . . . . . . . . . . . . . . . 6,100 198
Schering-Plough Corp. . . . . . . . . . . . 9,800 413
Warner-Lambert Co. . . . . . . . . . . . . . 4,400 360
-------
1,460
Insurance - 1.5%
American International Group, Inc. . . . . . 2,100 227
Media - Publishing - 3.8%
AT&T Corp. - Liberty Media Group - Cl. A * . 9,300 528
Gannett Co., Inc. . . . . . . . . . . . . . 500 41
-------
569
Media - TV / Radio - 2.9%
AMFM, Inc. * . . . . . . . . . . . . . . . . 2,100 164
The Walt Disney Co. . . . . . . . . . . . . 2,400 70
Time Warner, Inc. . . . . . . . . . . . . . 2,800 203
-------
437
Personal and Commercial Lending - 2.3%
MBNA Corp. . . . . . . . . . . . . . . . . . 12,900 352
Retail - Department Stores - 11.1%
eBay, Inc. * . . . . . . . . . . . . . . . . 300 38
Gap, Inc. . . . . . . . . . . . . . . . . . 4,400 202
Home Depot, Inc. . . . . . . . . . . . . . . 7,800 535
Kohl's Corp. . . . . . . . . . . . . . . . . 4,200 303
Lowe's Cos., Inc. . . . . . . . . . . . . . 6,900 412
Wal-Mart Stores, Inc. . . . . . . . . . . . 2,600 180
-------
1,670
Retail - Drug Stores - 0.9%
Walgreen Co. . . . . . . . . . . . . . . . . 4,400 129
Retail - Food - 0.7%
The Kroger Co. * . . . . . . . . . . . . . . 5,600 106
Telecommunication Equipment - 6.4%
Lucent Technologies, Inc. . . . . . . . . . 2,300 172
Nokia Oyj - ADR . . . . . . . . . . . . . . 4,200 798
-------
970
Telecommunication Services - 4.7%
Clear Channel Communications, Inc. * . . . . 1,200 107
MediaOne Group, Inc. . . . . . . . . . . . . 6,500 499
Vodafone AirTouch plc - ADR . . . . . . . . 2,200 109
-------
715
Telephone - 2.8%
Sprint Corp. . . . . . . . . . . . . . . . . 6,200 417
U.S. Government Agencies - 1.5%
Federal Home Loan Mortgage Corp. . . . . . . 4,000 188
Federal National Mortgage Assoc. . . . . . . 700 44
-------
232
-------
TOTAL COMMON STOCK- 96.6% 14,563
</TABLE>
116
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.8%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . $ 568 $ 568
-------- -------
TOTAL INVESTMENTS- 100.4% 15,131
Payables, less cash and receivables- (0.4)% (57)
-------- -------
NET ASSETS- 100.0% $15,074
======== =======
</TABLE>
* Non-income producing security.
ADR -American Depository Receipt
See notes to financial statements.
117
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Auto and Truck Parts - 1.6%
Autoliv, Inc. . . . . . . . . . . . . . . . . 600 $ 18
Avis Rent A Car, Inc. * . . . . . . . . . . . 500 13
Bandag, Inc. . . . . . . . . . . . . . . . . 600 15
Cooper Tire & Rubber Co. . . . . . . . . . . 1,200 19
Cummins Engine Company, Inc. . . . . . . . . 400 19
Federal-Mogul Corp. . . . . . . . . . . . . . 400 8
Lear Corp. * . . . . . . . . . . . . . . . . 400 13
Superior Industries International, Inc. . . . 600 16
Tower Automotive, Inc. * . . . . . . . . . . 600 9
------
130
Automobile - 0.2%
Group 1 Automotive, Inc. * . . . . . . . . . 400 5
Oshkosh Truck Corp. . . . . . . . . . . . . . 500 15
------
20
Banks - 5.5%
Associated Banc-Corp. . . . . . . . . . . . . 600 21
Astoria Financial Corp. . . . . . . . . . . . 400 12
Banknorth Group, Inc. . . . . . . . . . . . . 600 16
Bay View Capital Corp. . . . . . . . . . . . 800 11
Capitol Federal Financial . . . . . . . . . . 2,100 20
CCB Financial Corp. . . . . . . . . . . . . . 600 26
City National Corp. . . . . . . . . . . . . . 400 13
Community Trust Bancorp, Inc. . . . . . . . . 300 6
CORUS Bankshares, Inc. . . . . . . . . . . . 400 10
Dime Bancorp, Inc. . . . . . . . . . . . . . 1,300 20
F & M National Corp. . . . . . . . . . . . . 1,000 28
First Citizens BancShares, Inc. - Cl. A . . . 300 21
First Security Corp. . . . . . . . . . . . . 700 18
First Sentinel Bancorp, Inc. . . . . . . . . 1,500 12
First United Bancshares, Inc. . . . . . . . . 600 8
Golden State Bancorp, Inc. * . . . . . . . . 300 5
Hancock Holding Co. . . . . . . . . . . . . . 400 15
Harbor Florida Bancshares, Inc. . . . . . . . 600 8
Hibernia Corp. - Cl. A . . . . . . . . . . . 600 6
Independence Community Bank Corp. . . . . . . 500 6
Investors Financial Services Corp. . . . . . 200 9
Mercantile Bankshares Corp. . . . . . . . . . 600 19
National City Bancshares, Inc. . . . . . . . 10
Net.B@nk, Inc. * . . . . . . . . . . . . . . 200 4
North Fork Bancorporation, Inc. . . . . . . . 800 14
OceanFirst Financial Corp. . . . . . . . . . 800 14
Omega Financial Corp. . . . . . . . . . . . . 500 15
Roslyn Bancorp, Inc. . . . . . . . . . . . . 400 7
Silicon Valley Bancshares * . . . . . . . . . 400 20
TeleBanc Financial Corp. . . . . . . . . . . 600 16
United Community Financial Corp. . . . . . . 800 8
Valley National Bancorp . . . . . . . . . . . 1,656 46
------
454
Brokerage and Investment Management - 1.1%
A.G. Edwards, Inc. . . . . . . . . . . . . . 700 23
Affiliated Managers Group, Inc. * . . . . . . 600 24
Jefferies Group, Inc. . . . . . . . . . . . . 700 15
John Nuveen Co. - Cl. A . . . . . . . . . . . 400 14
Waddell & Reed Financial, Inc. - Cl. A . . . 500 14
------
90
Business Services - 1.7%
Comdisco, Inc. . . . . . . . . . . . . . . . 900 34
Express Scripts, Inc. - Cl. A * . . . . . . . 200 13
Harris Corp. . . . . . . . . . . . . . . . . 1,000 27
InaCom Corp. . . . . . . . . . . . . . . . . 200 1
Interim Services, Inc. . . . . . . . . . . . 600 15
Manpower, Inc. . . . . . . . . . . . . . . . 500 19
Robert Half International, Inc. . . . . . . . 600 17
USWeb Corp. * . . . . . . . . . . . . . . . . 300 13
------
139
Chemicals - 1.7%
Arch Chemicals, Inc. . . . . . . . . . . . . 400 8
CK Witco Corp. . . . . . . . . . . . . . . . 600 8
Cytec Industries, Inc. * . . . . . . . . . . 500 12
Georgia Gulf Corp. . . . . . . . . . . . . . 500 15
H.B. Fuller Co. . . . . . . . . . . . . . . . 400 22
IMC Global, Inc. . . . . . . . . . . . . . . 900 15
International Specialty Products, Inc. . . . 600 6
Millennium Chemicals, Inc. . . . . . . . . . 700 14
Octel Corp. * . . . . . . . . . . . . . . . . 500 5
Sigma-Aldrich Corp. . . . . . . . . . . . . . 1,200 36
------
141
Commercial Services - 3.7%
ACNielson Corp. * . . . . . . . . . . . . . . 600 15
Brady Corp. - Cl. A . . . . . . . . . . . . . 300 10
Circle.com * . . . . . . . . . . . . . . . . 75 1
Data Broadcasting Corp. * . . . . . . . . . . 200 2
Deluxe Corp. . . . . . . . . . . . . . . . . 600 17
F.Y.I., Inc. * . . . . . . . . . . . . . . . 300 10
Fair Issac & Co., Inc. . . . . . . . . . . . 400 21
Intraware, Inc. * . . . . . . . . . . . . . . 100 8
Lamar Advertising Co. * . . . . . . . . . . . 400 24
Lason, Inc. * . . . . . . . . . . . . . . . . 200 2
Olsten Corp. . . . . . . . . . . . . . . . . 1,100 12
Paxar Corp. * . . . . . . . . . . . . . . . . 900 8
Pittway Corp. - Cl. A . . . . . . . . . . . . 300 13
Power One, Inc. * . . . . . . . . . . . . . . 300 14
Quanta Services, Inc. * . . . . . . . . . . . 300 9
Snyder Communications, Inc. * . . . . . . . . 900 17
Standard Register Co. . . . . . . . . . . . . 300 6
Steelcase, Inc. - Cl. A . . . . . . . . . . . 1,200 14
Stericycle, Inc. * . . . . . . . . . . . . . 500 9
Sybase, Inc. * . . . . . . . . . . . . . . . 800 14
TMP Worldwide, Inc. * . . . . . . . . . . . . 100 14
True North Communications . . . . . . . . . . 300 13
Valassis Communications, Inc. * . . . . . . . 450 19
Ventiv Health, Inc. * . . . . . . . . . . . . 1,500 14
Veritas DGC, Inc. * . . . . . . . . . . . . . 500 7
Wackenhut Corp. - Cl. A . . . . . . . . . . . 600 9
------
302
</TABLE>
118
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Computer Equipment - 1.4%
Diebold, Inc. . . . . . . . . . . . . . . . . 800 $ 19
Digital River, Inc. * . . . . . . . . . . . . 100 3
In Focus Systems, Inc. * . . . . . . . . . . 300 7
NeoMagic Corp. * . . . . . . . . . . . . . . 200 2
Network Appliance, Inc. * . . . . . . . . . . 400 33
Quantum Corp. - DLT & Storage * . . . . . . . 600 9
SanDisk Corp. * . . . . . . . . . . . . . . . 100 10
Tech Data Corp. * . . . . . . . . . . . . . . 400 11
Wallace Computer Services, Inc. . . . . . . . 600 10
Xircom, Inc. * . . . . . . . . . . . . . . . 200 15
------
119
Computer Software and Services - 13.1%
24/7 Media, Inc. . . . . . . . . . . . . . . 100 6
Actuate Software Corp. . . . . . . . . . . . 200 9
Advanced Digital Information Corp. * . . . . 300 15
Advent Software, Inc. * . . . . . . . . . . . 150 10
Affiliated Computer Services, Inc. - Cl. A * 500 23
Ancor Communications, Inc. * . . . . . . . . 200 14
Aspect Development, Inc. * . . . . . . . . . 100 7
Aspen Technologies, Inc. * . . . . . . . . . 200 5
Autodesk, Inc. . . . . . . . . . . . . . . . 300 10
AVT Corp. * . . . . . . . . . . . . . . . . . 200 9
AXENT Technologies, Inc. * . . . . . . . . . 100 2
BEA Systems, Inc. . . . . . . . . . . . . . . 800 56
Black Box Corp. * . . . . . . . . . . . . . . 200 13
BroadVision, Inc. * . . . . . . . . . . . . . 200 34
Cabletron Systems, Inc. * . . . . . . . . . . 1,000 26
Cadence Design Systems, Inc. * . . . . . . . 600 14
CheckFree Holdings Corp. * . . . . . . . . . 200 21
CNET, Inc. * . . . . . . . . . . . . . . . . 200 11
Cognizant Technology Solutions Corp. . . . . 200 22
Concentric Network Corp. * . . . . . . . . . 200 6
Concord Communications, Inc. * . . . . . . . 100 4
Critical Path, Inc. * . . . . . . . . . . . . 100 9
DoubleClick, Inc. * . . . . . . . . . . . . . 128 32
DST Systems, Inc. * . . . . . . . . . . . . . 300 23
EarthLink Network, Inc. * . . . . . . . . . . 100 4
Exodus Communications, Inc. * . . . . . . . . 800 71
FileNet Corp. * . . . . . . . . . . . . . . . 300 8
go.com * . . . . . . . . . . . . . . . . . . 230 5
Go2Net, Inc. * . . . . . . . . . . . . . . . 100 9
Harbinger Corp. * . . . . . . . . . . . . . . 200 6
HNC Software, Inc. . . . . . . . . . . . . . 100 11
i2 Technologies, Inc. * . . . . . . . . . . . 200 39
InfoSpace.com, Inc. * . . . . . . . . . . . . 100 21
Intervu, Inc. * . . . . . . . . . . . . . . . 100 11
ISS Group, Inc. * . . . . . . . . . . . . . . 100 7
iVillage, Inc. * . . . . . . . . . . . . . . 100 2
Legato Systems, Inc. * . . . . . . . . . . . 300 21
Macromedia, Inc. * . . . . . . . . . . . . . 200 15
Mercury Interactive Corp. * . . . . . . . . . 200 22
Micromuse, Inc. * . . . . . . . . . . . . . . 100 17
MicroStrategy, Inc. * . . . . . . . . . . . . 100 21
Midway Games, Inc. * . . . . . . . . . . . . 600 14
MindSpring Enterprises, Inc. * . . . . . . . 200 5
Multex.com, Inc. * . . . . . . . . . . . . . 100 4
Netopia, Inc. * . . . . . . . . . . . . . . . 100 5
Network Associates, Inc. . . . . . . . . . . 600 16
Network Solutions, Inc. - Cl. A * . . . . . . 100 22
New Era of Networks, Inc. * . . . . . . . . . 200 10
OneMain.com, Inc. * . . . . . . . . . . . . . 200 3
Open Market, Inc. * . . . . . . . . . . . . . 100 5
Parametric Technology Co. * . . . . . . . . . 1,300 35
Peregrine Systems, Inc. * . . . . . . . . . . 100 8
Phoenix Technologies, Ltd. . . . . . . . . . 500 8
Portal Software, Inc. * . . . . . . . . . . . 100 10
Prodigy Communications Corp. * . . . . . . . 100 2
PSINet, Inc. * . . . . . . . . . . . . . . . 200 12
Radiant Systems, Inc. * . . . . . . . . . . . 300 12
Rare Medium Group, Inc. * . . . . . . . . . . 200 7
Rational Software Corp. * . . . . . . . . . . 400 20
Remedy Corp. * . . . . . . . . . . . . . . . 200 10
Rhythms NetConnections, Inc. * . . . . . . . 300 9
RSA Security, Inc. * . . . . . . . . . . . . 200 16
Safeguard Scientifics, Inc. * . . . . . . . . 200 32
Sapient Corp. . . . . . . . . . . . . . . . . 100 14
SoftNet Systems, Inc. . . . . . . . . . . . . 100 3
SportsLine USA, Inc. * . . . . . . . . . . . 100 5
Sterling Software, Inc. * . . . . . . . . . . 600 19
Symantec Corp. * . . . . . . . . . . . . . . 300 18
Synopsys, Inc. . . . . . . . . . . . . . . . 400 27
Technology Solutions Co. * . . . . . . . . . 300 10
Unigraphics Solutions, Inc. * . . . . . . . . 300 8
Verio, Inc. . . . . . . . . . . . . . . . . . 300 14
Verity, Inc. * . . . . . . . . . . . . . . . 100 4
VerticalNet, Inc. * . . . . . . . . . . . . . 100 16
Whittman-Hart, Inc. * . . . . . . . . . . . . 100 5
Ziff-Davis, Inc. - ZDNet * . . . . . . . . . 100 2
------
1,081
Construction - 1.7%
Armstrong World Industries, Inc. . . . . . . 500 17
Foster Wheeler Corp. . . . . . . . . . . . . 600 5
Jacobs Engineering Group, Inc. * . . . . . . 400 13
Lafarge Corp. . . . . . . . . . . . . . . . . 700 19
Martin Marietta Materials, Inc. . . . . . . . 400 17
NVR, Inc. * . . . . . . . . . . . . . . . . . 300 14
Pitt - Des Moines, Inc. . . . . . . . . . . . 400 10
U.S. Home Corp. * . . . . . . . . . . . . . . 500 13
USEC, Inc. . . . . . . . . . . . . . . . . . 600 4
USG Corp. * . . . . . . . . . . . . . . . . . 600 28
------
140
Consumer - Miscellaneous - 1.3%
American Greetings Corp. - Cl. A . . . . . . 500 12
Briggs & Stratton Corp. . . . . . . . . . . . 500 27
Daisytek International Corp. * . . . . . . . 300 7
Herbalife International, Inc. - Cl. A . . . . 1,100 16
Nu Skin Enterprises, Inc. - Cl. A * . . . . . 1,000 9
SCP Pool Corp. * . . . . . . . . . . . . . . 400 10
</TABLE>
119
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - Continued
Consumer - Miscellaneous - Continued
ValueVision International, Inc. - Cl. A * . . 400 $ 23
------
104
Containers - 0.2%
Sonoco Products Co. . . . . . . . . . . . . . 700 16
Cosmetics and Personal Care Products - 0.2%
Church & Dwight Co., Inc. . . . . . . . . . . 500 13
Diversified Operations - 2.2%
A.O. Smith Corp. . . . . . . . . . . . . . . 800 18
Blount International, Inc. * . . . . . . . . 500 8
Dexter Corp. . . . . . . . . . . . . . . . . 300 12
Gerber Scientific, Inc. . . . . . . . . . . . 600 13
Lancaster Colony Corp. . . . . . . . . . . . 600 20
Lanier Worldwide, Inc. * . . . . . . . . . . 800 3
National Service Industries, Inc. . . . . . . 700 21
Ogden Corp. . . . . . . . . . . . . . . . . . 1,100 13
Olin Corp. . . . . . . . . . . . . . . . . . 600 12
Pall Corp. . . . . . . . . . . . . . . . . . 1,200 26
Roper Industries, Inc. . . . . . . . . . . . 300 11
Trinity Industries, Inc. . . . . . . . . . . 500 14
Viad Corp. . . . . . . . . . . . . . . . . . 500 14
------
185
Electric Power - 3.7%
Calpine Corp. * . . . . . . . . . . . . . . . 400 26
Citizens Utilities Co. - Cl. B . . . . . . . 1,300 18
CMP Group, Inc. . . . . . . . . . . . . . . . 1,000 28
DPL, Inc. . . . . . . . . . . . . . . . . . . 800 14
Eastern Utilities Associates . . . . . . . . 1,100 33
Energy East Corp. . . . . . . . . . . . . . . 1,500 31
LG&E Energy Corp. . . . . . . . . . . . . . . 600 10
Ni Source, Inc. . . . . . . . . . . . . . . . 1,000 18
Niagara Mohawk Holdings, Inc. . . . . . . . . 500 7
NorthWestern Corp. . . . . . . . . . . . . . 400 9
Pinnacle West Capital Corp. . . . . . . . . . 600 18
Potomac Electric Power Co. . . . . . . . . . 400 9
Public Service Co. of New Mexico . . . . . . 1,000 16
Puget Sound Energy, Inc. . . . . . . . . . . 600 12
Teco Energy, Inc. . . . . . . . . . . . . . . 700 13
UtiliCorp United, Inc. . . . . . . . . . . . 900 18
Western Resources, Inc. . . . . . . . . . . . 700 12
Wisconsin Energy Corp. . . . . . . . . . . . 800 15
------
307
Electrical Equipment - 0.7%
American Power Conversion . . . . . . . . . . 700 19
Integrated Device Technology, Inc. * . . . . 600 17
Littelfuse, Inc. * . . . . . . . . . . . . . 500 12
The Genlyte Corp. * . . . . . . . . . . . . . 500 11
------
59
Electronic Products and Services - 10.0%
Adaptec, Inc. * . . . . . . . . . . . . . . . 500 25
Advanced Micro Devices, Inc. * . . . . . . . 500 14
Alliant Energy Corp. . . . . . . . . . . . . 900 25
Alpha Industries, Inc. . . . . . . . . . . . 200 11
Amkor Technology, Inc. * . . . . . . . . . . 500 14
Amphenol Corp. - Cl. A * . . . . . . . . . . 400 27
Anadigics, Inc. * . . . . . . . . . . . . . . 200 9
Applied Micro Circuits Corp. * . . . . . . . 200 25
Arrow Electronics, Inc. * . . . . . . . . . . 600 15
Atmel Corp. * . . . . . . . . . . . . . . . . 600 18
Avid Technology, Inc. * . . . . . . . . . . . 700 9
Avnet, Inc. . . . . . . . . . . . . . . . . . 200 12
Ball Corp. . . . . . . . . . . . . . . . . . 400 16
Burr-Brown Corp. * . . . . . . . . . . . . . 450 16
C-COR.net Corp. * . . . . . . . . . . . . . . 100 8
Checkpoint Systems, Inc. . . . . . . . . . . 200 2
Cohu, Inc. . . . . . . . . . . . . . . . . . 300 9
Conexant Systems, Inc. * . . . . . . . . . . 600 40
CTS Corp. . . . . . . . . . . . . . . . . . . 200 15
Cypress Semiconductor Corp. * . . . . . . . . 600 19
Dallas Semiconductor Corp. . . . . . . . . . 200 13
Electronics for Imaging, Inc. * . . . . . . . 200 12
Entrust Technologies, Inc. . . . . . . . . . 100 6
General Semiconductor, Inc. . . . . . . . . . 200 3
Kemet Corp. * . . . . . . . . . . . . . . . . 400 18
Kent Electronics Corp. * . . . . . . . . . . 700 16
Lam Research Corp. * . . . . . . . . . . . . 200 22
Lattice Semiconductor Corp. * . . . . . . . . 300 14
LTX Corp. * . . . . . . . . . . . . . . . . . 400 9
MedQuist, Inc. * . . . . . . . . . . . . . . 300 8
Microchip Technology, Inc * . . . . . . . . . 200 14
Molecular Devices, Corp. * . . . . . . . . . 200 10
National Semiconductor Corp. * . . . . . . . 700 30
Novellus Systems, Inc. * . . . . . . . . . . 200 24
Optical Coating Laboratory, Inc. . . . . . . 100 30
Park Electrochemical Corp. . . . . . . . . . 400 11
PerkinElmer, Inc. . . . . . . . . . . . . . . 400 17
PMC-Sierra, Inc. * . . . . . . . . . . . . . 200 32
Power Integrations, Inc. * . . . . . . . . . 200 10
QLogic Corp. * . . . . . . . . . . . . . . . 100 16
Sawtek, Inc. * . . . . . . . . . . . . . . . 200 13
SCI Systems, Inc. * . . . . . . . . . . . . . 400 33
SDL, Inc. * . . . . . . . . . . . . . . . . . 100 22
Sensormatic Electronics Corp. * . . . . . . . 900 16
Sterling Commerce, Inc. * . . . . . . . . . . 400 14
Stoneridge, Inc. . . . . . . . . . . . . . . 400 6
Trimble Navigation, Ltd. * . . . . . . . . . 200 4
Varian Semiconductor Equipment Associates,
Inc. . . . . . . . . . . . . . . . . . . . . 400 14
Vicor Corp. * . . . . . . . . . . . . . . . . 500 20
Vishay Intertechnology, Inc. * . . . . . . . 775 24
Waters Corp. * . . . . . . . . . . . . . . . 300 16
------
826
Engineering and Construction - 0.3%
Fluor Corp. . . . . . . . . . . . . . . . . . 500 23
Financial Services - 1.6%
Advanta Corp. - Cl. A . . . . . . . . . . . . 500 9
</TABLE>
120
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Financial Services - Continued
AmeriCredit Corp. * . . . . . . . . . . . . . 600 $ 11
Finova Group, Inc. . . . . . . . . . . . . . 500 18
FirstFed Financial Corp. * . . . . . . . . . 500 7
GreenPoint Financial Corp. . . . . . . . . . 900 21
Heller Financial, Inc. . . . . . . . . . . . 700 14
People's Bank - Bridgeport . . . . . . . . . 600 13
Rollins Truck Leasing Corp. . . . . . . . . . 1,300 15
S1 Corp. * . . . . . . . . . . . . . . . . . 100 8
Sky Financial Group, Inc. . . . . . . . . . . 596 12
------
128
Food, Beverage and Tobacco - 2.0%
American States Water Co. . . . . . . . . . . 400 15
Corn Products International, Inc. . . . . . . 400 13
Fleming Cos., Inc. . . . . . . . . . . . . . 1,300 13
Flowers Industries, Inc. . . . . . . . . . . 700 11
General Cigar Holdings, Inc. * . . . . . . . 1,000 8
IBP, Inc. . . . . . . . . . . . . . . . . . . 1,000 18
International Home Foods, Inc. * . . . . . . 700 12
J.M. Smucker Co. . . . . . . . . . . . . . . 700 14
NBTY, Inc. * . . . . . . . . . . . . . . . . 1,000 12
Pilgrims Pride Corp. - Cl. B . . . . . . . . 500 4
Robert Mondavi Corp. - Cl. A * . . . . . . . 200 7
Suiza Foods Corp. * . . . . . . . . . . . . . 300 12
SUPERVALU, Inc. . . . . . . . . . . . . . . . 1,100 22
------
161
Health Care Products - 4.9%
Affymetrix, Inc. * . . . . . . . . . . . . . 100 17
Alpharma, Inc. - Cl. A . . . . . . . . . . . 700 22
ALZA Corp. * . . . . . . . . . . . . . . . . 400 14
Bergen Brunswig Corp. - Cl. A . . . . . . . . 700 6
Biomatrix, Inc. * . . . . . . . . . . . . . . 300 6
Block Drug Co. - Cl. A . . . . . . . . . . . 1,037 32
C.R. Bard, Inc. . . . . . . . . . . . . . . . 400 21
Chiron Corp. * . . . . . . . . . . . . . . . 600 26
Genzyme Corp. (General Division) * . . . . . 600 27
Haemonetics Corp. * . . . . . . . . . . . . . 600 14
Human Genome Sciences, Inc. * . . . . . . . . 100 15
ICN Pharmaceuticals, Inc. . . . . . . . . . . 600 15
ICOS Corp. * . . . . . . . . . . . . . . . . 400 12
IVAX Corp. . . . . . . . . . . . . . . . . . 1,000 26
Jones Pharma, Inc. . . . . . . . . . . . . . 400 17
Mallinckrodt, Inc. . . . . . . . . . . . . . 600 19
MedImmune, Inc. * . . . . . . . . . . . . . . 200 33
Millennium Pharmaceuticals, Inc. * . . . . . 100 12
MiniMed, Inc. * . . . . . . . . . . . . . . . 100 7
Mylan Laboratories, Inc. . . . . . . . . . . 500 13
Sepracor, Inc. * . . . . . . . . . . . . . . 200 20
Summit Technology, Inc. * . . . . . . . . . . 700 8
VISX, Inc. * . . . . . . . . . . . . . . . . 200 10
Watson Pharmaceuticals, Inc. * . . . . . . . 300 11
------
403
Health Care Services - 2.1%
AmeriPath, Inc. * . . . . . . . . . . . . . . 700 6
Apria Healthcare Group, Inc. * . . . . . . . 900 16
Beverly Enterprises, Inc. * . . . . . . . . . 1,800 8
Bindley Western Industries, Inc. . . . . . . 1,021 15
ChiRex, Inc. * . . . . . . . . . . . . . . . 1,100 16
Idec Pharmaceuticals Corp. . . . . . . . . . 200 20
Lincare Holdings, Inc. . . . . . . . . . . . 300 10
Ocular Sciences, Inc. * . . . . . . . . . . . 400 7
Oxford Health Plans, Inc. * . . . . . . . . . 500 6
Quest Diagnostics, Inc. * . . . . . . . . . . 1,000 31
Triad Hospitals, Inc. * . . . . . . . . . . . 600 9
Trigon Healthcare, Inc. * . . . . . . . . . . 600 18
Universal Health Services, Inc. - Cl. B * . . 300 11
------
173
Household Appliances / Furnishings - 1.1%
Aaron Rents, Inc. . . . . . . . . . . . . . . 600 11
Ethan Allen Interiors, Inc. . . . . . . . . . 350 11
HomeBase, Inc. . . . . . . . . . . . . . . . 1,400 4
Rent-Way, Inc. * . . . . . . . . . . . . . . 400 8
Salton, Inc. * . . . . . . . . . . . . . . . 300 10
Shaw Industries, Inc . . . . . . . . . . . . 800 12
Springs Industries, Inc. - Cl. A . . . . . . 800 32
------
88
Housing - 1.6%
American Standard Cos., Inc. . . . . . . . . 600 28
Centex Corp. . . . . . . . . . . . . . . . . 400 10
D.R. Horton, Inc. . . . . . . . . . . . . . . 800 11
Fleetwood Enterprises . . . . . . . . . . . . 700 14
Kaufman & Broad Home Corp. . . . . . . . . . 500 12
Monaco Coach Corp. * . . . . . . . . . . . . 300 8
Owens Corning . . . . . . . . . . . . . . . . 1,100 21
Pulte Corp. . . . . . . . . . . . . . . . . . 400 9
TJ International, Inc. . . . . . . . . . . . 200 8
Winnebago, Industries, Inc. . . . . . . . . . 500 10
------
131
Insurance - 2.7%
Allmerica Financial Corp. . . . . . . . . . . 300 17
Arthur J. Gallagher & Co. . . . . . . . . . . 300 19
Delphi Financial Group, Inc. - Cl. A * . . . 420 13
E.W. Blanch Holdings, Inc. . . . . . . . . . 200 12
Everest Reinsurance Holdings . . . . . . . . 400 9
Fidelity National Financial, Inc. . . . . . . 710 10
First American Financial Corp. . . . . . . . 800 10
Hilb, Rogal & Hamilton Co. . . . . . . . . . 300 9
LandAmerica Financial Group, Inc. . . . . . . 600 11
Medical Assurance, Inc. . . . . . . . . . . . 330 7
Old Republic International Corp. . . . . . . 600 8
Protective Life Corp. . . . . . . . . . . . . 700 22
Radian Group, Inc. . . . . . . . . . . . . . 400 19
Stewart Information Services Corp. . . . . . 500 7
The Midland Co. . . . . . . . . . . . . . . . 300 6
The MONY Group, Inc. . . . . . . . . . . . . 700 20
The PMI Group, Inc. . . . . . . . . . . . . . 300 15
</TABLE>
121
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Insurance - Continued
Triad Guaranty, Inc. * . . . . . . . . . . . 400 $ 9
------
223
Leisure and Recreation - 2.7%
Arctic Cat, Inc. . . . . . . . . . . . . . . 1,100 11
Argosy Gaming Co. * . . . . . . . . . . . . . 800 13
Ascent Entertainment Group, Inc. * . . . . . 400 5
Aztar Corp. * . . . . . . . . . . . . . . . . 1,600 17
Brunswick Corp. . . . . . . . . . . . . . . . 600 13
Callaway Golf Co. . . . . . . . . . . . . . . 500 9
Dover Downs Entertainment * . . . . . . . . . 500 9
Electronic Arts, Inc. * . . . . . . . . . . . 300 25
Harrah's Entertainment, Inc. * . . . . . . . 900 24
Hollywood Park, Inc. . . . . . . . . . . . . 400 9
Mandalay Resort Group * . . . . . . . . . . . 500 10
Metro-Goldwyn-Mayer, Inc. (MGM) * . . . . . . 700 17
Park Place Entertainment Corp. * . . . . . . 1,000 13
Pegasus Systems, Inc. * . . . . . . . . . . . 200 12
Premier Parks, Inc. * . . . . . . . . . . . . 400 12
Station Casinos, Inc. * . . . . . . . . . . . 500 11
Trendwest Resorts, Inc. * . . . . . . . . . . 500 11
------
221
Machinery - 1.7%
Astec Industries, Inc. * . . . . . . . . . . 300 6
FMC Corp. * . . . . . . . . . . . . . . . . . 300 17
Gardner Denver Machinery, Inc. * . . . . . . 600 10
Imation Corp. * . . . . . . . . . . . . . . . 600 20
Kennametal, Inc. . . . . . . . . . . . . . . 300 10
SPX Corp. . . . . . . . . . . . . . . . . . . 200 16
Tecumseh Products Co. - Cl. A . . . . . . . . 800 38
Thermo Electron Corp. * . . . . . . . . . . . 500 7
Zebra Technologies Corp. - Cl. A * . . . . . 300 18
------
142
Media - Publishing - 0.7%
McClatchy Newspapers, Inc. - Cl. A . . . . . 600 26
Pulitzer, Inc. . . . . . . . . . . . . . . . 400 16
Ziff-Davis, Inc. - ZD * . . . . . . . . . . . 800 13
------
55
Media - TV / Radio - 0.7%
A.H. Belo Corp. . . . . . . . . . . . . . . . 1,200 23
Cox Radio, Inc. - Cl. A * . . . . . . . . . . 100 10
Hearst-Argyle Television, Inc. * . . . . . . 427 11
Westwood One, Inc. * . . . . . . . . . . . . 200 15
------
59
Metal Product and Fabrication - 0.8%
Commercial Metals Co. . . . . . . . . . . . . 400 14
Reynolds Metals Co. . . . . . . . . . . . . . 200 15
Timken Co. . . . . . . . . . . . . . . . . . 900 18
Worthington Industries, Inc. . . . . . . . . 900 15
------
62
Metals and Mining - 0.4%
Phelps Dodge Corp. . . . . . . . . . . . . . 532 36
Natural Gas Distribution - 0.6%
Peoples Energy Corp. . . . . . . . . . . . . 400 13
UGI Corp. . . . . . . . . . . . . . . . . . . 1,600 33
------
46
Oil - Equipment and Services - 0.9%
Berry Petroleum Co. - Cl. A . . . . . . . . . 500 8
Parker Drilling Co. . . . . . . . . . . . . . 2,400 8
SEACOR SMIT, Inc. . . . . . . . . . . . . . . 200 10
Tidewater, Inc. . . . . . . . . . . . . . . . 700 25
Weatherford International, Inc. * . . . . . . 500 20
------
71
Oil and Natural Gas Exploration and Production - 2.8%
Brown Tom, Inc. * . . . . . . . . . . . . . . 800 11
Cabot Oil & Gas Corp. - Cl. A . . . . . . . . 300 5
Devon Energy Corp. * . . . . . . . . . . . . 300 10
ENSCO International, Inc. * . . . . . . . . . 1,000 23
EOG Resources, Inc. . . . . . . . . . . . . . 700 12
Global Marine, Inc. * . . . . . . . . . . . . 500 8
Helmerich & Payne, Inc. . . . . . . . . . . . 400 9
Mitchell Energy & Development Corp. - Cl. A . 700 15
Nabors Industries, Inc. * . . . . . . . . . . 512 16
Noble Affiliates, Inc. . . . . . . . . . . . 400 9
Noble Drilling Corp. * . . . . . . . . . . . 600 20
Northwest Natural Gas Co. . . . . . . . . . . 600 13
Patterson Energy, Inc. * . . . . . . . . . . 600 8
Pride International, Inc. * . . . . . . . . . 700 10
R&B Falcon Corp. . . . . . . . . . . . . . . 1,000 13
Ultramar Diamond Shamrock Corp. . . . . . . . 1,100 25
Union Pacific Resources Group, Inc. . . . . . 1,400 18
Western Gas Resources, Inc. . . . . . . . . . 800 10
------
235
Paper and Forest Products - 1.7%
Boise Cascade Corp. . . . . . . . . . . . . . 400 16
Consolidated Papers, Inc. . . . . . . . . . . 400 13
Georgia-Pacific Corp. (Timber Group) . . . . 1,100 27
Mead Corp. . . . . . . . . . . . . . . . . . 300 13
Rayonier, Inc. . . . . . . . . . . . . . . . 300 15
Temple-Inland, Inc. . . . . . . . . . . . . . 400 26
Westvaco Corp. . . . . . . . . . . . . . . . 900 29
------
139
Personal and Commercial Lending - 0.1%
Metris Cos., Inc. . . . . . . . . . . . . . . 318 11
Precious Metals/Gems/Stones - 0.6%
Freeport-McMoRan Copper & Gold . . . . . . . 1,400 30
Homestake Mining Co. . . . . . . . . . . . . 800 6
Newmont Mining Corp. . . . . . . . . . . . . 600 15
------
51
Real Estate Development - 0.3%
Ryland Group, Inc. . . . . . . . . . . . . . 800 18
</TABLE>
122
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Real Estate Development - Continued
Standard Pacific Corp. . . . . . . . . . . . 900 $ 10
------
28
Real Estate Investment Trust - 0.2%
International Rectifier Corp. * . . . . . . . 500 13
Real Estate Operations - 0.2%
M.D.C. Holdings, Inc. . . . . . . . . . . . . 1,000 16
Retail - Department Stores - 3.7%
AnnTaylor Stores Corp. * . . . . . . . . . . 300 10
Barnes & Noble, Inc. * . . . . . . . . . . . 600 12
barnesandnoble.com, Inc. * . . . . . . . . . 200 3
BJ's Wholesale Club, Inc. . . . . . . . . . . 400 15
Cato Corp. - Cl. A . . . . . . . . . . . . . 1,100 14
Dollar Thrifty Automotive Group, Inc. * . . . 700 17
Dollar Tree Stores, Inc. * . . . . . . . . . 300 15
Handleman Co. . . . . . . . . . . . . . . . . 500 7
Harcourt General, Inc. . . . . . . . . . . . 500 20
Haverty Furniture Co., Inc. . . . . . . . . . 1,200 15
Hollywood Entertainment Corp. * . . . . . . . 200 3
InterTAN, Inc. * . . . . . . . . . . . . . . 300 8
JLK Direct Distribution, Inc. - Cl. A * . . . 800 8
Jo-Ann Stores, Inc. . . . . . . . . . . . . . 1,300 15
Lands' End, Inc. . . . . . . . . . . . . . . 200 7
Linens 'N Things, Inc. * . . . . . . . . . . 200 6
Michaels Stores, Inc. * . . . . . . . . . . . 400 11
Micro Warehouse, Inc. * . . . . . . . . . . . 200 4
Neiman Marcus Group, Inc. - Cl. A . . . . . . 400 11
Pacific Sunwear of California, Inc. * . . . . 200 6
Ross Stores, Inc. . . . . . . . . . . . . . . 500 9
Shopko Stores, Inc. . . . . . . . . . . . . . 600 14
Spiegel, Inc. - Cl. A . . . . . . . . . . . . 1,700 12
Tiffany & Co. . . . . . . . . . . . . . . . . 300 27
Value City Department Stores, Inc. * . . . . 800 12
Williams-Sonoma, Inc. . . . . . . . . . . . . 200 9
Zale Corp. * . . . . . . . . . . . . . . . . 400 19
------
309
Retail - Drug Stores - 0.1%
Longs Drug Stores, Inc. . . . . . . . . . . . 400 10
Retail - Food - 1.1%
Brinker International, Inc. * . . . . . . . . 800 19
Darden Restaurants, Inc. . . . . . . . . . . 600 11
Landry's Seafood Restaurants, Inc. * . . . . 1,000 9
RARE Hospitality International, Inc. * . . . 600 13
Ryan's Family Steak Houses, Inc. * . . . . . 1,200 10
The Grand Union Co. * . . . . . . . . . . . . 900 9
The Great Atlantic & Pacific Tea Co., Inc. . 800 22
------
93
Shoe and Apparel Manufacturing - 0.6%
Brown Shoe Co., Inc. . . . . . . . . . . . . 500 7
Jones Apparel Group, Inc. * . . . . . . . . . 450 12
Liz Claiborne, Inc. . . . . . . . . . . . . . 300 11
Oxford Industries, Inc. . . . . . . . . . . . 400 8
Timberland Co. - Cl. A * . . . . . . . . . . 200 11
WestPoint Stevens, Inc. * . . . . . . . . . . 200 4
------
53
Steel - 0.6%
AK Steel Holding Corp. . . . . . . . . . . . 800 15
Bethlehem Steel Corp. * . . . . . . . . . . . 1,500 13
LTV Corp. . . . . . . . . . . . . . . . . . . 1,200 5
USX-US Steel Group, Inc. . . . . . . . . . . 500 16
------
49
Technology - 0.9%
VeriSign, Inc. . . . . . . . . . . . . . . . 400 76
Telecommunication Equipment - 3.1%
Advanced Fibre Communications, Inc. * . . . . 400 18
American Tower Corp. - Cl. A . . . . . . . . 500 15
CIENA Corp. * . . . . . . . . . . . . . . . . 600 35
Covad Communications Group, Inc. * . . . . . 300 17
Crown Castle International Corp. . . . . . . 600 19
E-Tek Dynamics, Inc. * . . . . . . . . . . . 100 13
Harmonic, Inc. * . . . . . . . . . . . . . . 100 10
L-3 Communications Holdings, Corp. * . . . . 300 12
Network Equipment Technologies, Inc. * . . . 200 2
PairGain Technologies, Inc. * . . . . . . . . 300 4
Powertel, Inc. . . . . . . . . . . . . . . . 200 20
Powerwave Technologies, Inc. * . . . . . . . 100 6
Proxim, Inc. * . . . . . . . . . . . . . . . 100 11
RF Micro Devices, Inc. * . . . . . . . . . . 200 14
Scientific-Atlanta, Inc. . . . . . . . . . . 400 22
Symbol Technologies, Inc. . . . . . . . . . . 450 29
TriQuint Semiconductor, Inc. * . . . . . . . 100 11
------
258
Telecommunication Services - 3.2%
Allegiance Telecom, Inc. * . . . . . . . . . 300 28
CapRock Communications Corp. * . . . . . . . 300 10
Centennial Cellular Corp. - A Shares * . . . 200 17
Commonwealth Telephone Enterprises, Inc. . . 200 11
Intermedia Communications, Inc. * . . . . . . 400 15
Leap Wireless International, Inc. * . . . . . 100 8
McLeodUSA, Inc. - Cl. A * . . . . . . . . . . 600 35
MGC Communications, Inc. * . . . . . . . . . 200 10
Northeast Optic Network, Inc. * . . . . . . . 100 6
Omnipoint Corp. * . . . . . . . . . . . . . . 100 12
RCN Corp. * . . . . . . . . . . . . . . . . . 200 10
TALK.com, Inc. * . . . . . . . . . . . . . . 300 5
UnitedGlobalCom, Inc. - Cl. A * . . . . . . . 600 42
US LEC Corp. - Cl. A * . . . . . . . . . . . 400 13
West TeleServices Corp. * . . . . . . . . . . 800 19
Winstar Communications, Inc. * . . . . . . . 300 23
------
264
Telephone - 0.9%
e.spire Communications, Inc. . . . . . . . . 300 2
Primus Telecomm Group, Inc. . . . . . . . . . 300 11
</TABLE>
123
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Telephone - Continued
Telephone and Data Systems, Inc. . . . . . . 500 $ 63
------
76
Transportation Services - 1.5%
Alaska Air Group, Inc. * . . . . . . . . . . 400 14
America West Holdings Corp. - Cl. B * . . . . 600 13
American Freightways Corp. * . . . . . . . . 600 10
Amtran, Inc. * . . . . . . . . . . . . . . . 400 8
Forward Air Corp. * . . . . . . . . . . . . . 300 13
GATX Corp. . . . . . . . . . . . . . . . . . 600 20
UAL Corp. . . . . . . . . . . . . . . . . . . 300 23
USFreightways Corp. . . . . . . . . . . . . . 400 19
------
120
------
TOTAL COMMON STOCK- 96.4% 7,949
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.4%
Investment in joint repurchase agreement with
Goldman Sachs & Co. dated 12/31/99, 3.159%
due 01/03/00 (Secured by various U.S.
Treasury obligations and U.S. Government
Agency Bonds) . . . $ 200 200
------- ------
TOTAL INVESTMENTS- 98.8% 8,149
Cash and Receivables, less payables- 1.2% 99
------- ------
NET ASSETS- 100.0% $8,248
======= ======
</TABLE>
* Non-income producing security.
See notes to financial statements.
124
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(AUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Auto and Truck Parts - 0.5%
Federal-Mogul Corp. . . . . . . . . . . . . 1,500 $ 30
Banks - 0.6%
U.S. Bancorp . . . . . . . . . . . . . . . 1,300 31
Business Services - 1.1%
Manpower, Inc. . . . . . . . . . . . . . . 1,600 60
Chemicals - 7.0%
Eastman Chemical Co. . . . . . . . . . . . 400 19
Geon Co. . . . . . . . . . . . . . . . . . 2,400 78
Hercules, Inc. . . . . . . . . . . . . . . 4,200 117
IMC Global, Inc. . . . . . . . . . . . . . 7,100 116
RPM, Inc. . . . . . . . . . . . . . . . . . 3,700 38
Wellman, Inc. . . . . . . . . . . . . . . . 1,200 22
------
390
Commercial Services - 3.0%
ACNielson Corp. * . . . . . . . . . . . . . 1,600 40
Bowne & Co., Inc. . . . . . . . . . . . . . 3,200 43
Quintiles Transnational Corp. * . . . . . . 600 11
Snyder Communications, Inc. * . . . . . . . 3,900 75
------
169
Computer Equipment - 7.1%
3Com Corp. * . . . . . . . . . . . . . . . 2,700 127
Maxtor Corp. * . . . . . . . . . . . . . . 12,200 88
Quantum Corp. - Hard Disk Drive * . . . . . 8,200 57
Tech Data Corp. * . . . . . . . . . . . . . 4,500 122
------
394
Computer Software and Services - 6.9%
Ardent Software, Inc. * . . . . . . . . . . 2,300 90
Autodesk, Inc. . . . . . . . . . . . . . . 700 24
Cabletron Systems, Inc. * . . . . . . . . . 2,700 70
Keane, Inc. * . . . . . . . . . . . . . . . 2,800 89
Sterling Software, Inc. * . . . . . . . . . 3,600 113
------
386
Consumer - Miscellaneous - 2.1%
American Greetings Corp. - Cl. A . . . . . 1,000 24
Ingram Micro, Inc. * - Cl. A . . . . . . . 6,900 90
------
114
Electronic Products and Services - 9.0%
Arrow Electronics, Inc. * . . . . . . . . . 6,400 162
Avnet, Inc. . . . . . . . . . . . . . . . . 900 55
Micron Technology, Inc. * . . . . . . . . . 1,000 78
Polaroid Corp. . . . . . . . . . . . . . . 3,600 68
Sterling Commerce, Inc. * . . . . . . . . . 2,900 99
Thomas & Betts Corp. . . . . . . . . . . . 1,300 41
------
503
Engineering and Construction - 1.9%
Fluor Corp. . . . . . . . . . . . . . . . . 2,300 106
Financial Services - 1.7%
Heller Financial, Inc. . . . . . . . . . . 4,700 94
Food, Beverage and Tobacco - 0.6%
International Home Foods, Inc. * . . . . . 2,100 36
Health Care Products - 1.0%
Bergen Brunswig Corp. - Cl. A . . . . . . . 6,500 54
STERIS Corp. . . . . . . . . . . . . . . . 100 1
------
55
Health Care Services - 3.2%
McKesson HBOC, Inc. . . . . . . . . . . . . 3,000 68
Quest Diagnostics, Inc. * . . . . . . . . . 3,600 110
------
178
Insurance - 4.8%
Aetna, Inc. . . . . . . . . . . . . . . . . 1,800 100
Everest Reinsurance Holdings . . . . . . . 4,900 109
Nationwide Financial Services - Cl. A . . . 2,100 59
------
268
Leisure and Recreation - 0.7%
Callaway Golf Co. . . . . . . . . . . . . . 2,200 39
Machinery - 3.3%
AGCO Corp. . . . . . . . . . . . . . . . . 2,500 33
FMC Corp. * . . . . . . . . . . . . . . . . 1,200 69
Thermo Electron Corp. * . . . . . . . . . . 5,400 81
------
183
Media - Publishing - 2.1%
Ziff-Davis, Inc. - ZD * . . . . . . . . . . 7,200 114
Oil - Equipment and Services - 3.1%
Baker Hughes, Inc. . . . . . . . . . . . . 3,100 65
Weatherford International, Inc. * . . . . . 2,700 108
------
173
Oil and Natural Gas Exploration and Production - 8.8%
Burlington Resources, Inc. . . . . . . . . 2,200 73
EOG Resources, Inc. . . . . . . . . . . . . 2,400 42
Noble Affiliates, Inc. . . . . . . . . . . 3,200 69
Ocean Energy, Inc. * . . . . . . . . . . . 5,700 44
Santa Fe International Corp. . . . . . . . 1,100 28
Santa Fe Snyder Corp. * . . . . . . . . . . 10,600 85
Transocean Sedco Forex, Inc. . . . . . . . 1,900 64
Union Pacific Resources Group, Inc. . . . . 6,700 85
------
490
Paper and Forest Products - 1.2%
Jefferson Smurfit Group plc - ADR . . . . . 2,300 67
Pollution Control - 3.7%
Republic Services, Inc. - Cl. A . . . . . . 3,000 43
Safety-Kleen Corp. * . . . . . . . . . . . 4,900 56
</TABLE>
125
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(AUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL/MID CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Pollution Control - Continued
Waste Management, Inc. . . . . . . . . . . 6,300 $ 108
------
207
Retail - Department Stores - 15.1%
Abercrombie & Fitch Co. * . . . . . . . . . 4,700 125
Burlington Coat Factory Warehouse Corp. . . 3,700 51
Consolidated Stores Corp. * . . . . . . . . 6,600 107
Harcourt General, Inc. . . . . . . . . . . 2,400 97
Kmart Corp. * . . . . . . . . . . . . . . . 4,500 45
OfficeMax, Inc. . . . . . . . . . . . . . . 9,100 50
Payless ShoeSource, Inc. * . . . . . . . . 800 38
Saks, Inc. * . . . . . . . . . . . . . . . 5,200 81
Shopko Stores, Inc. . . . . . . . . . . . . 2,900 67
Toys "R" Us, Inc. * . . . . . . . . . . . . 6,400 92
Venator Group, Inc. . . . . . . . . . . . . 12,700 89
------
842
Retail - Food - 2.0%
Albertson's, Inc. . . . . . . . . . . . . . 2,100 68
The Kroger Co. * . . . . . . . . . . . . . 2,400 45
------
113
Shoe and Apparel Manufacturing - 3.1%
Jones Apparel Group, Inc. * . . . . . . . . 3,600 98
Liz Claiborne, Inc. . . . . . . . . . . . . 2,000 75
------
173
Steel - 1.4%
AK Steel Holding Corp. . . . . . . . . . . 4,001 76
Transportation Services - 1.1%
Yellow Corp. * . . . . . . . . . . . . . . 3,500 59
------
TOTAL COMMON STOCK- 96.1% 5,350
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.2%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . $ 179 179
-------- ------
TOTAL INVESTMENTS- 99.3% 5,529
Cash and Receivables, less payables- 0.7% 41
-------- ------
NET ASSETS- 100.0% $5,570
======== ======
</TABLE>
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
126
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Real Estate Development - 3.0%
Catellus Development Corp. * . . . . . . . . 300,000 $ 3,844
Real Estate Investment Trust - 95.2%
AMB Property Corp. . . . . . . . . . . . . . 120,000 2,393
AMLI Residential Properties Trust . . . . . 62,000 1,252
Avalonbay Communities, Inc. . . . . . . . . 175,245 6,013
Bradley Real Estate, Inc. . . . . . . . . . 83,000 1,447
Brandywine Realty Trust . . . . . . . . . . 115,400 1,890
BRE Properties, Inc. . . . . . . . . . . . . 197,000 4,469
Burnham Pacific Properties, Inc. . . . . . . 160,000 1,500
Camden Property Trust . . . . . . . . . . . 145,000 3,969
CarrAmerica Realty Corp. . . . . . . . . . . 140,000 2,957
Centerpoint Properties Corp. . . . . . . . . 38,900 1,396
Charles E. Smith Residential Realty, Inc. . 61,600 2,179
Chateau Communities, Inc. . . . . . . . . . 136,000 3,527
Cousins Properties, Inc. . . . . . . . . . . 115,000 3,903
Crescent Real Estate Equities, Inc. . . . . 100,000 1,838
Developers Diversified Realty Corp. . . . . 215,000 2,768
Duke Realty Investments, Inc. . . . . . . . 238,078 4,643
Equity Office Properties Trust . . . . . . . 239,693 5,902
Equity Residential Properties Trust . . . . 145,500 6,211
FelCor Lodging Trust, Inc. . . . . . . . . . 80,400 1,407
Franchise Finance Corp. of America . . . . . 125,000 2,992
Highwoods Properties, Inc. . . . . . . . . . 100,000 2,325
JDN Realty Corp. . . . . . . . . . . . . . . 170,900 2,756
JP Realty, Inc. . . . . . . . . . . . . . . 120,000 1,875
Kilroy Realty Corp. . . . . . . . . . . . . 103,700 2,281
Kimco Realty Corp. . . . . . . . . . . . . . 100,000 3,387
Liberty Property Trust . . . . . . . . . . . 180,000 4,365
Mack-Cali Realty Corp. . . . . . . . . . . . 125,000 3,258
Pacific Gulf Properties, Inc. . . . . . . . 64,600 1,308
Post Properties, Inc. . . . . . . . . . . . 124,700 4,770
Prentiss Properties Trust . . . . . . . . . 158,300 3,324
Prologis Trust . . . . . . . . . . . . . . . 137,059 2,638
Public Storage, Inc. . . . . . . . . . . . . 135,000 3,063
Reckson Associates Realty Corp. . . . . . . 63,600 1,304
Regency Realty Corp. . . . . . . . . . . . . 132,800 2,656
Simon Property Group, Inc. . . . . . . . . . 144,000 3,303
Spieker Properties, Inc. . . . . . . . . . . 154,100 5,615
Storage USA, Inc. . . . . . . . . . . . . . 91,000 2,753
Sun Communities, Inc. . . . . . . . . . . . 90,000 2,897
Vornado Realty Trust . . . . . . . . . . . . 110,000 3,575
--------
120,109
--------
TOTAL COMMON STOCK- 98.2% 123,953
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 1.0%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . $ 1,212 $ 1,212
TOTAL INVESTMENTS- 99.2% 125,165
Cash and Receivables, less payables- 0.8% 1,049
--------- --------
NET ASSETS- 100.0% $126,214
--------- --------
</TABLE>
* Non-income producing security.
See notes to financial statements.
127
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 4.9%
B.F. Goodrich Co. . . . . . . . . . . . . 434,500 $ 11,949
General Dynamics Corp. . . . . . . . . . 510,600 26,934
Honeywell International, Inc. . . . . . . 1,152,200 66,468
United Technologies Corp. . . . . . . . . 1,586,500 103,122
----------
208,473
Agricultural Operations - 0.8%
Monsanto Co. . . . . . . . . . . . . . . 977,300 34,816
Auto and Truck Parts - 0.6%
Borg-Warner Automotive, Inc. . . . . . . 261,000 10,571
Lear Corp. * . . . . . . . . . . . . . . 467,700 14,966
----------
25,537
Automobile - 1.2%
Ford Motor Co. . . . . . . . . . . . . . 954,400 51,001
Banks - 3.5%
AmSouth Bancorporation . . . . . . . . . 540,500 10,438
Bank of America Corp. . . . . . . . . . . 455,000 22,835
Chase Manhattan Corp. . . . . . . . . . . 141,200 10,970
Comerica, Inc. . . . . . . . . . . . . . 534,400 24,950
Fifth Third Bancorp . . . . . . . . . . . 227,700 16,708
KeyCorp . . . . . . . . . . . . . . . . . 603,400 13,350
Wells Fargo & Co. . . . . . . . . . . . . 1,191,500 48,181
----------
147,432
Brokerage and Investment Management - 0.4%
Morgan Stanley, Dean Witter, Discover &
Co.. . . . . . . . . . . . . . . . . . . 119,100 17,002
Computer Equipment - 7.2%
Dell Computer Corp. *. . . . . . . . . . 1,028,700 52,464
Hewlett-Packard Co. . . . . . . . . . . . 558,000 63,577
Intel Corp. . . . . . . . . . . . . . . . 1,261,200 103,813
International Business Machines Corp. . . 647,800 69,962
Network Appliance, Inc. * . . . . . . . . 145,300 12,069
----------
301,885
Computer Software and Services - 11.8%
America Online, Inc. * . . . . . . . . . 1,181,200 89,107
Computer Associates International, Inc. . 638,400 44,648
First Data Corp. . . . . . . . . . . . . 587,400 28,966
Microsoft Corp. . . . . . . . . . . . . . 2,019,300 235,753
Oracle Corp. * . . . . . . . . . . . . . 580,400 65,041
Yahoo!, Inc. * . . . . . . . . . . . . . 76,500 33,101
----------
496,616
Consumer - Miscellaneous - 1.4%
Avery Dennison Corp. . . . . . . . . . . 307,300 22,395
Black & Decker Corp. . . . . . . . . . . 683,700 35,723
----------
58,118
Cosmetics and Personal Care Products - 0.4%
Avon Products, Inc. . . . . . . . . . . . 231,600 7,643
Dial Corp. . . . . . . . . . . . . . . . 452,700 11,006
----------
18,649
Diversified Operations - 6.8%
Danaher Corp. . . . . . . . . . . . . . . 183,100 8,834
General Electric Co. . . . . . . . . . . 1,271,300 196,734
Illinois Tool Works, Inc. . . . . . . . . 197,338 13,333
Textron, Inc. . . . . . . . . . . . . . . 237,100 18,183
Tyco International, Ltd. . .. . . . . . . 1,294,800 50,335
----------
287,419
Electric Power - 3.0%
Ameren Corp. . . . . . . . . . . . . . . 588,100 19,260
Edison International . . . . . . . . . .. 1,063,300 27,845
Florida Progress Corp. . . . . . . . . . 625,200 26,454
Peco Energy Co. . . . . . . . . . . . . . 514,200 17,869
Reliant Energy, Inc. . . . . . . . . . . 971,500 22,223
Southern Co. . . . . . . . . . . . . . . 562,900 13,228
----------
126,879
Electronic Products and Services - 7.4%
Analog Devices, Inc. * . . . . . . . . . 217,700 20,246
Cisco Systems, Inc. * . . . . . . . . . . 1,406,900 150,714
LSI Logic Corp. * . . . . . . . . . . . . 178,300 12,035
Maxim Integrated Products, Inc. * . . . . 708,600 33,437
Pitney Bowes, Inc. . . . . . . . . . . . 190,200 9,189
SCI Systems, Inc. * . . . . . . . . . . . 239,900 19,717
Teradyne, Inc. * . . . . . . . . . . . . 208,800 13,781
Texas Instruments, Inc. . . . . . . . . . 548,600 53,146
----------
312,265
Financial Services - 4.3%
Associates First Capital Corp. - Cl. A * 639,800 17,554
Citigroup, Inc. . . . . . . . . . . . . . 2,463,300 136,867
Mellon Financial Corp. . . . . . . . . . 758,800 25,847
----------
180,268
Food, Beverage and Tobacco - 2.7%
Anheuser-Busch Cos., Inc. . . . . . . . . 525,800 37,266
Kellogg Co. . . . . . . . . . . . . . . . 394,100 12,143
Philip Morris Cos., Inc. . . . . . . . . 869,700 20,166
Quaker Oats Co. . . . . . . . . . . . . . 375,700 24,655
Universal Foods Corp. . . . . . . . . . . 137,300 2,798
UST, Inc. . . . . . . . . . . . . . . . . 613,700 15,458
----------
112,486
Health Care Products - 8.8%
Allergan, Inc. . . . . . . . . . . . . . 251,600 12,517
Baxter International, Inc . . . . . . . . 377,600 23,718
Bristol-Myers Squibb Co . . . . . . . . . 848,600 54,469
Cardinal Health, Inc. . . . . . . . . . . 364,400 17,446
Eli Lilly & Co. . . . . . . . . . . . . . 276,600 18,394
Johnson & Johnson . . . . . . . . . . . . 392,500 36,552
Merck & Co., Inc. . . . . . . . . . . . . 786,400 52,738
Pfizer, Inc. . . . . . . . . . . . . . . 932,600 30,251
Schering-Plough Corp. . . . . . . . . . . 1,028,300 43,381
Warner-Lambert Co. . . . . . . . . . . . 1,018,400 83,445
----------
372,911
128
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Insurance - 4.6%
American General Corp. . . . . . . . . . 279,700 $ 21,222
American International Group, Inc. . . .. 455,300 49,229
AXA Financial, Inc. . . . . . . . . . . . 807,200 27,344
Hartford Financial Services Group, Inc. . 498,000 23,593
Lincoln National Corp. . . . . . . . . . 625,000 25,000
Marsh & McLennan Cos., Inc. . . . . . . . 316,100 30,247
Travelers Property Casualty Corp. - Cl. A 502,700 17,218
----------
193,853
Machinery - 0.8%
Ingersoll-Rand Co. . . . . . . . . . . . 588,500 32,404
Media - Publishing - 0.5%
AT&T Corp. - Liberty Media Group -
Cl. A * . . . . . . . . . . . . . . . . 377,300 21,412
Media - TV / Radio - 2.3%
CBS Corp. * . . . . . . . . . . . . . . . 287,500 18,382
Time Warner, Inc. . . . . . . . . . . . . 1,108,200 80,275
----------
98,657
Oil - 2.6%
Atlantic Richfield Co. (ARCO) . . . . . . 476,400 41,208
Royal Dutch Petroleum Co. - NY Shares . . 1,133,300 68,494
----------
109,702
Oil - Equipment and Services - 1.1%
Exxon Mobil Corp. . . . . . . . . . . . . 588,900 47,443
Oil and Natural Gas Exploration and Production - 2.0%
BP Amoco plc - ADR . . . . . . . . . . . 429,000 25,445
Chevron Corp. . . . . . . . . . . . . . . 132,600 11,486
Kerr-McGee Corp. . . . . . . . . . . . . 587,500 36,425
USX-Marathon Group . . . . . . . . . . . 436,400 10,774
----------
84,130
Paper and Forest Products - 1.8%
Boise Cascade Corp. . . . . . . . . . . . 101,600 4,115
International Paper Co. . . . . . . . .. 434,500 24,522
Kimberly-Clark Corp. . . . . . . . . . . 536,500 35,007
Willamette Industries, Inc. . . . . . .. 296,900 13,787
----------
77,431
Personal and Commercial Lending - 0.4%
MBNA Corp. . . . . . . . . . . . . . . . 619,400 16,879
Retail - Department Stores - 6.0%
Dayton Hudson Corp. . . . . . . . . . . . 312,600 22,956
Gap, Inc. . . . . . . . . . . . . . . . . 392,600 18,060
Home Depot, Inc. . . . . . . . . . . . . 1,030,200 70,633
Limit ed, Inc. . . . . . . . . . . . . . 323,600 14,016
Lowe's Cos., Inc. . . . . . . . . . . . . 571,500 34,147
May Department Stores Co. . . . . . . . . 298,100 9,614
Tandy Corp. . . . . . . . . . . . . . . . 197,700 9,724
TJX Cos., Inc. . . . . . . . . . . . . . 1,141,300 23,325
Wal-Mart Stores, Inc. . . . . . . . . . . 738,700 51,063
----------
253,538
Retail - Drug Stores - 0.3%
CVS Corp. . . . . . . . . . . . . . . . . 322,800 12,892
Retail - Food - 0.3%
Outback Steakhouse, Inc. * . . . . . . .. 442,500 11,477
Shoe and Apparel Manufacturing - 0.2%
Tommy Hilfiger Corp. * . . . . . . . . . 294,000 6,854
Telecommunication Equipment - 2.7%
ADC Telecommunications, Inc. * . . . . . 217,300 15,768
Lucent Technologies, Inc. . . . . . . . . 947,400 70,877
Tellabs, Inc. * . . . . . . . . . . . . . 398,100 25,553
----------
112,198
Telecommunication Services - 1.0%
Clear Channel Communications, Inc. * . . 342,300 30,550
Sprint PCS (PCS Group) * . . . . . . . . 134,200 13,756
----------
44,306
Telephone - 5.4%
AT&T Corp. . . . . . . . . . . . . . . . 723,800 36,733
Bell Atlantic Corp. . . . . . . . . . . . 260,000 16,006
BellSouth Corp. . . . . . . . . . . . . . 643,000 30,100
GTE Corp. . . . . . . . . . . . . . . . . 140,700 9,928
MCI WorldCom, Inc. . . . . . . . . . . . 1,635,150 86,765
SBC Communications, Inc. . . . . . . . . 770,000 37,538
Sprint Corp. . . . . . . . . . . . . . . 152,200 10,245
----------
227,315
Transportation Services - 1.5%
Kansas City Southern Industries, Inc. . . 229,700 17,141
UAL Corp. . . . . . . . . . . . . . . . . 577,400 44,785
----------
61,926
U.S. Government Agencies - 1.2%
Federal National Mortgage Assoc. . . . . 828,600 51,735
----------
TOTAL COMMON STOCK- 99.9% 4,215,909
---------- ----------
TOTAL INVESTMENTS- 99.9% 4,215,909
Cash and Receivables, less payables- 0.1% 2,932
---------- ----------
NET ASSETS- 100.0% $4,218,841
========== ==========
* Non-income producing security.
ADR-American Depository Receipts
See notes to financial statements.
129
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.4%
B.F. Goodrich Co. (US).................... 276,600 $ 7,607
General Dynamics Corp. (US)............... 277,100 14,617
Honeywell International, Inc. (US)........ 442,200 25,509
United Technologies Corp. (US)............ 520,800 33,852
----------
81,585
Agricultural Operations - 0.5%
Monsanto Co. (US)......................... 464,400 16,544
Auto and Truck Parts - 0.3%
Borg-Warner Automotive, Inc. (US)......... 97,200 3,937
Lear Corp. * (US)......................... 177,600 5,683
----------
9,620
Automobile - 0.7%
Ford Motor Co. (US)....................... 443,500 23,700
Banks - 2.2%
Bank of Amreica Corp. (US)................ 383,900 19,267
Comerica, Inc. (US)....................... 337,900 15,775
Fifth Third Bancorp (US).................. 128,800 9,451
FleetBoston Financial Corp. (US).......... 225,000 7,833
Wells Fargo & Co. (US).................... 564,900 22,843
----------
75,169
Brokerage and Investment Management - 0.2%
Morgan Stanley, Dean Witter, Discover &
Co. (US)................................. 45,000 6,424
Chemicals - 0.2%
Solutia, Inc. (US)........................ 450,200 6,950
Commercial Services - 0.4%
Omnicom Group, Inc. (US).................. 85,000 8,500
R.R. Donnelley & Sons Co. (US)............ 195,000 4,838
----------
13,338
Computer Equipment - 3.9%
Dell Computer Corp. * (US)................ 446,100 22,751
Hewlett-Packard Co. (US).................. 147,500 16,805
Intel Corp. (US).......................... 612,700 50,433
International Business Machines Corp
(US)..................................... 356,100 38,459
Network Appliance, Inc. * (US)............ 78,000 6,479
----------
134,927
Computer Software and Services - 6.9%
America Online, Inc. * (US)............... 571,900 43,143
Computer Associates International, Inc
(US)..................................... 330,400 23,107
First Data Corp. (US)..................... 239,900 11,830
Microsoft Corp. (US)...................... 862,900 100,743
Oracle Corp. * (US)....................... 284,900 31,927
Sun Microsystems, Inc. * (US)............. 80,000 6,195
Yahoo!, Inc. * (US)....................... 45,000 19,471
----------
236,416
Consumer - Miscellaneous - 0.9%
Avery Dennison Corp. (US)................. 131,000 9,546
Black & Decker Corp. (US)................. 385,700 20,153
----------
29,699
Cosmetics and Personal Care Products - 0.6%
Avon Products, Inc. (US).................. 289,100 9,540
Dial Corp. (US)........................... 502,500 12,217
----------
21,757
Diversified Operations - 4.3%
General Electric Co. (US)................. 595,500 92,153
Illinois Tool Works, Inc. (US)............ 223,200 15,080
Reynolds & Reynolds Co. - Cl. A (US)...... 179,500 4,039
Textron, Inc. (US)........................ 140,100 10,744
Tyco International, Ltd. (US)............. 666,000 25,891
----------
147,907
Electric Power - 1.8%
Ameren Corp. (US)......................... 251,100 8,224
Edison International (US)................. 534,000 13,984
Florida Progress Corp. (US)............... 316,300 13,383
Peco Energy Co. (US)...................... 300,400 10,439
Reliant Energy, Inc. (US)................. 491,100 11,234
Southern Co. (US)......................... 193,900 4,557
----------
61,821
Electronic Products and Services - 4.2%
Analog Devices, Inc. * (US)............... 70,401 6,548
Cisco Systems, Inc. * (US)................ 697,300 74,698
LSI Logic Corp. * (US).................... 70,000 4,725
Maxim Integrated Products, Inc. * (US).... 292,900 13,821
Pitney Bowes, Inc. (US)................... 155,300 7,503
SCI Systems, Inc. * (US).................. 113,400 9,320
Texas Instruments, Inc. (US).............. 280,000 27,125
----------
143,740
Financial Services - 2.2%
Associates First Capital Corp. - Cl. A *
(US)..................................... 218,002 5,981
Citigroup, Inc. (US)......................1,178,600 65,486
Mellon Financial Corp. (US)............... 166,100 5,658
----------
77,125
Food, Beverage and Tobacco - 1.7%
Anheuser-Busch Cos., Inc. (US)............ 284,500 20,164
Kellogg Co. (US).......................... 197,400 6,083
Philip Morris Cos., Inc. (US)............. 432,200 10,022
Quaker Oats Co. (US)...................... 100,500 6,595
Universal Foods Corp. (US)................ 421,800 8,594
UST, Inc. (US)............................ 220,000 5,541
----------
56,999
Health Care Products - 5.5%
Baxter International, Inc. (US)........... 132,300 8,310
Bristol-Myers Squibb Co. (US)............. 465,000 29,847
130
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Cardinal Health, Inc. (US)................. 157,200 7,526
Eli Lilly & Co. (US)....................... 130,800 8,698
Genetech, Inc. * (US)...................... 37,500 5,044
Johnson & Johnson (US)..................... 241,300 22,471
Merck & Co., Inc. (US)..................... 468,200 31,399
Pfizer, Inc. (US).......................... 478,900 15,534
Schering-Plough Corp. (US)................. 514,300 21,697
Warner-Lambert Co. (US).................... 449,200 36,807
----------
187,333
Household Appliances / Furnishings - 0.1%
Leggett & Platt, Inc. (US)................. 229,700 4,924
Housing - 0.1%
Centex Corp. (US).......................... 168,000 4,147
Insurance - 2.7%
American General Corp. (US)................ 105,400 7,997
American International Group, Inc. (US).... 172,906 18,695
AXA Financial, Inc. (US)................... 551,900 18,696
Hartford Financial Services Group, Inc
(US)...................................... 212,500 10,067
Hartford Life, Inc. - Cl. A (US)........... 100,000 4,400
Lincoln National Corp. (US)................ 289,400 11,576
Marsh & McLennan Cos., Inc. (US)........... 56,400 5,397
Travelers Property Casualty Corp. - Cl. A
(US)...................................... 169,200 5,795
XL Capital, Ltd. - Cl. A (BM).............. 182,400 9,462
----------
92,085
Machinery - 0.5%
Ingersoll-Rand Co. (US).................... 279,300 15,379
Media - Publishing - 0.3%
AT&T Corp. - Liberty Media Group -
Cl. A * (US)............................... 200,000 11,350
Media - TV / Radio - 1.3%
CBS Corp. * (US)........................... 133,200 8,516
Time Warner, Inc. (US)..................... 503,200 36,451
----------
44,967
Oil - 1.6%
Atlantic Richfield Co. (ARCO) (US)......... 218,900 18,935
Conoco, Inc. - Cl. A (US).................. 179,800 4,450
Royal Dutch Petroleum Co. - NY Shares
(NL)...................................... 534,000 32,274
----------
55,659
Oil - Equipment and Services - 0.8%
Exxon Mobil Corp. (US)..................... 351,202 28,294
Oil and Natural Gas Exploration and Production - 0.9%
BP Amoco plc - ADR (GB).................... 220,600 13,084
Chevron Corp. (US)......................... 59,600 5,163
Kerr-McGee Corp. (US)...................... 113,200 7,018
USX-Marathon Group (US).................... 160,800 3,970
----------
29,235
Paper and Forest Products - 1.4%
Boise Cascade Corp. (US)................... 180,400 7,306
Champion International Corp. (US).......... 89,700 5,556
International Paper Co. (US)............... 196,800 11,107
Kimberly-Clark Corp. (US).................. 239,000 15,594
Willamette Industries, Inc. (US)........... 173,800 8,071
----------
47,634
Personal and Commercial Lending - 0.2%
MBNA Corp. (US)............................ 269,100 7,333
Retail - Department Stores - 3.7%
Dayton Hudson Corp. (US)................... 104,400 7,667
Gap, Inc. (US)............................. 140,000 6,440
Home Depot, Inc. (US)...................... 578,550 39,667
Limited, Inc. (US)......................... 102,300 4,431
Lowe's Cos., Inc. (US)..................... 107,600 6,429
May Department Stores Co. (US)............. 125,000 4,031
Tandy Corp. (US)........................... 128,300 6,311
TJX Cos., Inc. (US)........................ 497,100 10,159
Wal-Mart Stores, Inc. (US)................. 620,000 42,858
----------
127,993
Retail - Food - 0.3%
Brinker International, Inc. * (US)......... 178,700 4,289
Outback Steakhouse, Inc. * (US)............ 163,000 4,228
----------
8,517
Shoe and Apparel Manufacturing - 0.3%
Tommy Hilfiger Corp. * (GB)................ 490,800 11,442
Steel - 0.1%
Nucor Corp. (US)........................... 80,100 4,390
Telecommunication Equipment - 1.6%
Lucent Technologies, Inc. (US)............. 496,500 37,144
Nokia Oyj - ADR (FI)....................... 34,600 6,574
Tellabs, Inc. * (US)....................... 169,200 10,861
----------
54,579
Telecommunication Services - 1.5%
Clear Channel Communications, Inc. *
(US)...................................... 300,000 26,775
Sprint PCS * (US).......................... 239,200 24,518
----------
51,293
Telephone - 3.2%
AT&T Corp. (US)............................ 365,600 18,554
Bell Atlantic Corp. (US)................... 139,200 8,569
BellSouth Corp. (US)....................... 237,600 11,123
GTE Corp. (US)............................. 76,500 5,398
MCI WorldCom, Inc. (US).................... 913,500 48,473
131
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Telephone - Continued
SBC Communications, Inc. (US). . . . . 389,700 $ 18,998
----------
111,115
Transportation Services - 1.1%
Alaska Air Group, Inc. * (US). . . . . 116,200 4,082
Kansas City Southern Industries,
Inc. (US) . . . . . . . . . . . . . . 108,400 8,090
Northwest Airlines Corp. * (US). . . . 173,000 3,849
UAL Corp. (US) . . . . . . . . . . . . 125,000 9,695
Union Pacific Corp. (US) . . . . . . . 264,600 11,543
----------
37,259
U.S. Government Agencies - 0.8%
Federal National Mortgage
Assoc. (US) . . . . . . . . . . . . . 424,100 26,480
----------
TOTAL COMMON STOCK- 61.4% 2,105,129
Par
Value
(000's)
CORPORATE BONDS
Financial Services - 0.9%
Citibank Credit Card Master
Trust I - Ser.
1998-6 Cl. A (US)
5.85% due 04/10/03 . . . . . . . . . . $ 32,235 31,839
Personal and Commercial Lending
- 0.1%
Chase Manhattan Credit Card
Master Trust (US)
7.04% due 02/15/05 . . . . . . . . . . 4,000 4,014
----------
TOTAL CORPORATE BONDS- 1.0% 35,853
----------
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.3%
Lockheed Martin Corp. - (US)
6.85% due 05/15/01 . . . . . . . . . . 7,000 6,928
Raytheon Co. - Notes (US)
6.45% due 08/15/02 . . . . . . . . . . 2,290 2,238
----------
9,166
Automobile - 0.2%
Ford Motor Co. - Bonds (US)
6.625% due 10/01/28 . . . . . . . . . 9,405 8,179
Banks - 2.8%
Banponce Financial Corp.
Mountain Bank
Ent - Ser C. (US)
6.58% due 11/25/03 . . . . . . . . . . 11,040 10,656
Capital One Bank - Notes (US)
7.08% due 10/30/01 . . . . . . . . . . 2,950 2,929
Deutsche Augleichsbank (DE)
4.0% due 07/04/09 . . . . . . . . . . 6,000 5,303
European Investment Bank -
Notes (XU)
3.0% due 09/20/06 . . . . . . . . . . 340,000 3,703
6.0% due 11/26/04 . . . . . . . . . . 1,350 2,124
8.75% due 08/25/17 . . . . . . . . . . 420 886
First Union Corp. - Notes (US)
6.95% due 11/01/04 . . . . . . . . . . 9,150 8,988
Firstar Bank (US)
7.125% due 12/01/09 . . . . . . . . . 9,230 8,913
International Bank of Reconstruction
& Development - Notes (XU)
2.0% due 02/18/08 . . . . . . . . . . 920,000 9,390
4.5% due 06/20/00 . . . . . . . . . . 355,000 3,540
4.5% due 03/20/03 . . . . . . . . . . 1,030,000 11,406
4.75% due 12/20/04 . . . . . . . . . . 805,000 9,341
9.25% due 07/20/07 . . . . . . . . . . 2,430 4,535
J.P. Morgan & Co., Inc. - Sr.
Notes (US)
5.75% due 02/25/04 . . . . . . . . . . 3,000 2,848
Korea Development Bank -
Bonds (US)
7.125% due 09/17/01 . . . . . . . . . 4,600 4,564
Korea Development Bank -
Notes (US)
7.125% due 04/22/04 . . . . . . . . . 8,300 8,092
----------
97,218
Brokerage and Investment Management
- 0.8%
Goldman Sachs Group, Inc. - Notes (US)
7.35% due 10/01/09 . . . . . . . . . . 6,375 6,227
Lehman Brothers Holdings, Inc. -
Notes (US)
6.5% due 10/01/02 . . . . . . . . . . 7,455 7,285
6.625% due 04/01/04 . . . . . . . . . 13,000 12,594
----------
26,106
Business Services - 0.1%
Comdisco, Inc. - Notes (US)
5.95% due 04/30/02 . . . . . . . . . . 4,200 4,046
Computer Equipment - 0.1%
International Business Machines Corp.
- Notes (US)
5.625% due 04/12/04 . . . . . . . . . 2,870 2,722
Diversified Operations - 0.5%
El Paso Energy Corp. - Sr. Notes (US)
6.625% due 07/15/01 . . . . . . . . . 3,180 3,148
Tyco International Group SA -
Notes (LU)
6.125% due 06/15/01 . . . . . . . . . 9,400 9,238
Tyco International, Ltd. - Notes (BM)
6.5% due 11/01/01 . . . . . . . . . . 5,000 4,959
----------
17,345
Electric Power - 0.2%
Consolidated Edison, Inc. - Debs. (US)
6.45% due 12/01/07 . . . . . . . . . . 4,200 3,950
Ontario-Hydro (CA)
9.0% due 06/24/02 . . . . . . . . . . 4,150 3,053
----------
7,003
132
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000,s)
PUBLICLY-TRADED BONDS - CONTINUED
Financial Services - 3.4%
Amresco Commercial Mortgage Funding I
- Ser. 1997-C1 Cl. A3 (US)
7.19% due 06/17/29 . . . . . . . . . . . $ 6,980 $ 6,863
Associates Corp. of North America - Sr.
Notes (US)
5.5% due 02/15/02 . . . . . . . . . . . 4,000 3,886
Baden-Wurttemberg L-Finance BV (DE)
6.75% due 06/22/05 . . . . . . . . . . . 9,500 5,206
Capital One Financial Corp. - Notes (US)
7.25% due 12/01/03 . . . . . . . . . . . 10,000 9,707
Chase Commercial Mortgage Securities
Corp. - Ser. 1997-1 Cl. A2 (US)
7.37% due 02/19/07 . . . . . . . . . . . 13,300 13,173
Contimortgage Home Equity Loan Trust
(US)
6.0% due 12/25/16 . . . . . . . . . . . 15,000 14,686
Finova Capital Corp. - Notes (US)
7.25% due 11/08/04 . . . . . . . . . . . 7,785 7,700
Green Tree Financial Corp. (US)
6.68% due 01/15/29 . . . . . . . . . . . 12,400 12,303
KFW International Finance - Debs. (US)
10.625% due 09/03/01 . . . . . . . . . . 1,000 1,701
Mortgage Capital Funding, Inc. - Ser.
1996 - MC2 Cl. A1 (US)
6.758% due 02/20/04 . . . . . . . . . . 7,542 7,454
PNC Funding Corp. - Sub. Notes (US)
7.5% due 11/01/09 . . . . . . . . . . . 10,040 9,887
Residential Asset Securities Corp. (US)
6.11% due 05/25/24 . . . . . . . . . . . 10,000 9,711
Salomon, Inc. - Sr. Notes (US)
7.2% due 02/01/04 . . . . . . . . . . . 2,300 2,280
Southern Pacific Secured Assets Corp.
(US) 6.27% due 03/25/19 . . . . . . . . 5,940 5,872
U.S. West Capital Funding, Inc. (a) -
Notes 144A (a) (US)
6.875% due 08/15/01 . . . . . . . . . . 6,265 6,244
----------
116,673
Food, Beverage and Tobacco - 0.4%
Philip Morris Cos., Inc. (US)
7.625% due 05/15/02 . . . . . . . . . . 5,670 5,647
8.25% due 10/15/03 . . . . . . . . . . . 7,555 7,606
----------
13,253
Foreign - 0.2%
Queensland Treasury Corp. - Bonds (AU)
6.5% due 06/14/05 . . . . . . . . . . . 600 386
8.0% due 08/14/01 . . . . . . . . . . . 700 472
8.0% due 09/14/07 . . . . . . . . . . . 1,350 932
Treuhandanstalt (DE)
7.75% due 10/01/02 . . . . . . . . . . . 6,410 6,992
----------
8,782
Foreign Governmental - 4.1%
Government of Canada - Notes (CA)
1.9% due 03/23/09 . . . . . . . . . . . 385,000 3,815
9.75% due 06/01/21 . . . . . . . . . . . 2,000 1,922
11.0% due 06/01/09 . . . . . . . . . . . 2,830 2,606
12.0% due 03/01/05 . . . . . . . . . . . 500 432
Government of France - Bonds (FR)
8.5% due 04/25/03 . . . . . . . . . . . 7,300 8,185
9.5% due 01/25/01 . . . . . . . . . . . 6,860 7,309
Government of Japan - Bonds (JP)
2.9% due 09/20/19 . . . . . . . . . . . 720,000 7,648
3.4% due 03/22/04 . . . . . . . . . . . 500,000 5,421
Government of Netherlands - Bonds (NL)
6.5% due 04/15/03 . . . . . . . . . . . 5,200 5,507
7.75% due 03/01/05 . . . . . . . . . . . 9,600 10,840
8.75% due 05/01/00 . . . . . . . . . . . 3,000 3,070
Government of Sweden - Debs. (SE)
6.5% due 10/25/06 . . . . . . . . . . . 7,900 974
6.75% due 05/05/14 . . . . . . . . . . . 4,700 594
Government of Sweden - Bonds (SE)
10.25% due 05/05/00 . . . . . . . . . . 1,600 192
10.25% due 05/05/03 . . . . . . . . . . 12,900 1,741
Hydro-Quebec - Bonds (CA)
10.875% due 07/25/01 . . . . . . . . . . 500 371
Kingdom of Denmark - Bonds (DK)
7.0% due 11/15/07 . . . . . . . . . . . 5,000 736
7.0% due 11/10/24 . . . . . . . . . . . 3,400 510
8.0% due 05/15/03 . . . . . . . . . . . 9,000 1,324
9.0% due 11/15/00 . . . . . . . . . . . 5,400 760
Kingdom of Spain - Notes (ES)
3.1% due 09/20/06 . . . . . . . . . . . 1,280,000 13,911
Province of Ontario (CA)
7.75% due 06/04/02 . . . . . . . . . . . 4,000 4,069
Province of Quebec - Debs. (CA)
7.5% due 07/15/23 . . . . . . . . . . . 12,970 12,572
7.5% due 09/15/29 . . . . . . . . . . . 9,030 8,753
Republic of Chile (US)
6.875% due 04/28/09 . . . . . . . . . . 1,000 927
Republic of Italy - Notes (IT)
3.5% due 06/20/01 . . . . . . . . . . . 800,000 8,208
4.5% due 05/01/09 . . . . . . . . . . . 1,400 1,304
8.5% due 01/01/04 . . . . . . . . . . . 6,800 7,709
9.0% due 11/01/23 . . . . . . . . . . . 8,000 10,877
10.5% due 04/28/14 . . . . . . . . . . . 3,350 7,653
----------
139,940
Health Care Products - 0.2%
Beckman Instruments, Inc. - (US)
7.1% due 03/04/03 . . . . . . . . . . . 6,000 5,691
Health Care Services - 0.5%
Columbia/HCA Healthcare Corp. - Notes
(US)
6.41% due 06/15/00 . . . . . . . . . . . 3,290 3,268
133
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Health Care Services - Continued
Tenet Healthcare Corp. - Sr. Notes (US)
8.0% due 01/15/05 . . . . . . . . . . . $ 14,000 $ 13,475
----------
16,743
Media - Publishing - 0.3%
News America, Inc. (US)
7.625% due 11/30/28 . . . . . . . . . . 11,500 10,687
Media - TV / Radio - 0.6%
Cox Communications, Inc. - Notes (US)
6.8% due 08/01/28 . . . . . . . . . . . 3,115 2,711
Time Warner, Inc. - Notes (US)
8.11% due 08/15/06 . . . . . . . . . . . 1,325 1,355
8.18% due 08/15/07 . . . . . . . . . . . 5,770 5,922
Viacom, Inc. - Sr. Notes (US)
7.75% due 06/01/05 . . . . . . . . . . . 11,525 11,650
----------
21,638
Municipals - 0.2%
Tennessee Valley Authority - Bonds (US)
6.375% due 09/18/06 . . . . . . . . . . 11,000 5,994
Natural Gas Distribution - 0.5%
KN Energy, Inc. - Sr. Notes (US)
6.45% due 11/30/01 . . . . . . . . . . . 7,555 7,460
6.45% due 03/01/03 . . . . . . . . . . . 4,590 4,451
Williams Cos., Inc. - Notes (US)
6.125% due 02/01/01 . . . . . . . . . . 4,525 4,479
Williams Gas Pipeline Center (a) - Sr.
Notes 144A (a) (US)
7.375% due 11/15/06 . . . . . . . . . . 1,300 1,268
----------
17,658
Oil - 0.1%
Conoco, Inc. - Notes (US)
5.9% due 04/15/04 . . . . . . . . . . . 2,000 1,907
Oil - Equipment and Services - 0.4%
Petroleum Geo-Services ASA - Sr. Notes
(NO)
7.125% due 03/30/28 . . . . . . . . . . 17,100 14,916
Oil and Natural Gas Exploration
and Production - 0.0%
Amerada Hess Corp. - Bonds (US)
7.875% due 10/01/29 . . . . . . . . . . 1,790 1,750
Paper and Forest Products - 0.1%
Georgia-Pacific Corp. - Bonds (US)
7.75% due 11/15/29 . . . . . . . . . . . 2,570 2,449
Personal and Commercial Lending - 2.2%
Countrywide Home Loan Corp. (US)
6.25% due 04/15/09 . . . . . . . . . . . 800 718
CS First Boston Mortgage Securities
Corp. (US)
6.91% due 01/15/08 . . . . . . . . . . . 8,076 7,920
EQCC Home Equity Loan Trust (US)
6.223% due 06/25/11 . . . . . . . . . . 9,300 9,160
Ford Motor Credit Co. (LU)
5.25% due 06/16/08 . . . . . . . . . . . 10,250 5,010
Ford Motor Credit Co. - Notes (LU)
6.125% due 04/28/03 . . . . . . . . . . 5,000 4,849
General Motors Acceptance Corp. (US)
4.0% due 02/09/06 . . . . . . . . . . . 6,800 6,298
General Motors Acceptance Corp. - Bond
(US)
5.5% due 01/14/02 . . . . . . . . . . . 5,000 4,860
Household Finance Corp. - Sr. Notes (US)
5.125% due 06/24/09 . . . . . . . . . . 6,300 5,805
Household Finance Corp. - Notes (US)
6.0% due 05/01/04 . . . . . . . . . . . 4,000 3,798
Money Store Home Equity Trust - Ser.
1996-B A7 (US)
7.55% due 02/15/20 . . . . . . . . . . . 12,547 12,542
Residential Asset Securities Corp. (US)
7.18% due 01/25/25 . . . . . . . . . . . 4,000 3,976
Residential Funding Mortgage Securities
(US)
6.78% due 07/25/10 . . . . . . . . . . . 9,740 9,694
----------
74,630
Pollution Control - 0.1%
WMX Technologies, Inc. - Notes (US)
7.125% due 06/15/01 . . . . . . . . . . 2,715 2,631
Retail - Department Stores - 0.2%
Federated Department Stores, Inc. - Sr.
Notes (US)
8.5% due 06/15/03 . . . . . . . . . . . 7,445 7,677
Retail - Food - 0.1%
The Kroger Co. - Sr. Notes (US)
8.0% due 09/15/29 . . . . . . . . . . . 4,180 4,082
Telecommunication Services - 0.3%
Cox Communications, Inc. - Notes (US)
7.0% due 08/15/01 . . . . . . . . . . . 9,125 9,104
Telephone - 1.1%
AT&T Corp. - Notes (US)
5.625% due 03/15/04 . . . . . . . . . . 4,000 3,792
6.5% due 03/15/29 . . . . . . . . . . . 15,370 13,159
MCI WorldCom, Inc. - Sr. Notes (US)
6.95% due 08/15/28 . . . . . . . . . . . 7,790 7,106
7.75% due 04/01/07 . . . . . . . . . . . 6,560 6,687
Sprint Capital Corp. (US)
6.875% due 11/15/28 . . . . . . . . . . 9,050 8,051
----------
38,795
Transportation Services - 0.5%
Delta Air Lines, Inc. - Debs. 144A (a) (US)
8.3% due 12/15/29 . . . . . . . . . . . 18,390 17,814
134
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Government Agencies - 12.7%
Federal Home Loan Mortgage Corp. (US)
6.0% due 03/15/17 . . . . . . . . . . . $ 16,267 $ 15,922
6.0% due 12/15/26 . . . . . . . . . . . 25,000 21,734
Federal National Mortgage Assoc. (US)
6.0% due 01/31/30 . . . . . . . . . . . 92,210 89,498
6.0% due 05/15/08 . . . . . . . . . . . 9,500 8,894
6.0% due 09/25/14 . . . . . . . . . . . 22,745 22,190
6.5% due 01/31/30 . . . . . . . . . . . 73,695 72,856
7.0% due 01/31/30 . . . . . . . . . . . 14,000 13,536
7.0% due 06/18/13 . . . . . . . . . . . 21,418 21,291
7.0% due 04/01/29 . . . . . . . . . . . 19,398 19,198
7.5% due 01/31/30 . . . . . . . . . . . 49,850 49,289
Government National Mortgage Assoc. (US)
6.0% due 01/31/30 . . . . . . . . . . . 13,605 13,473
7.0% due 01/31/30 . . . . . . . . . . . 62,110 59,975
8.0% due 12/15/17 . . . . . . . . . . . 25,896 26,484
----------
434,340
U.S. Governmental - 2.6%
U.S. Treasury - Bonds (US)
5.25% due 02/15/29 . . . . . . . . . . . 52,635 43,522
6.75% due 08/15/26 # . . . . . . . . . . 7,660 7,696
8.875% due 08/15/17 . . . . . . . . . . 9,500 11,482
U.S. Treasury - Notes (US)
5.75% due 04/30/03 # . . . . . . . . . . 3,000 2,945
5.875% due 11/15/04 . . . . . . . . . . 25,980 25,473
----------
91,118
----------
TOTAL PUBLICLY-TRADED BONDS- 35.8% 1,230,057
----------
SHORT-TERM INVESTMENTS - 9.9%
Investment in joint trading account
(Note B) (US)
5.242% due 01/03/00 . . . . . . . . . . 338,170 338,170
---------- ----------
TOTAL INVESTMENTS- 108.1% 3,709,209
Payables, less cash and receivables- (8.1)% (278,290)
---------- ----------
NET ASSETS- 100.0% $3,430,919
========== ==========
* Non-income producing security.
ADR - American Depository Receipt
# Securities, or a portion thereof, with an aggregate market value of $4,804
have been segregated to collateralize financial futures contracts.
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1999, securities aggregated
$25,326 or 0.74% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market % of
Country Value Long-Term
Country Abbreviation (000's) Investments
United States. . US $3,046,853 90.4%
Netherlands . . NL 51,691 1.5%
Bermuda . . . . BM 40,312 1.2%
Canada . . . . . CA 37,593 1.1%
Italy . . . . . IT 35,751 1.1%
United Kingdom . GB 24,526 0.7%
Japan . . . . . JP 22,410 0.7%
Supra National . XU 18,514 0.5%
Germany . . . . DE 17,501 0.5%
Luxembourg . . . LU 16,372 0.5%
France . . . . . FR 15,494 0.5%
Norway . . . . . NO 14,916 0.4%
Spain . . . . . ES 13,911 0.4%
Finland . . . . FI 6,574 0.2%
Sweden . . . . . SE 3,501 0.1%
Denmark . . . . DK 3,330 0.1%
Australia . . . AU 1,790 0.1%
---------- -----
$3,371,039 100.0%
========== =====
135
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.7%
Raytheon Co. - Notes
6.45% due 08/15/02 . . . . . . . . . . . . . $ 500 $ 489
Banks - 15.2%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 . . . . . . . . . . . . . 1,900 1,856
Banponce Corp. - Notes
6.54% due 11/06/01 . . . . . . . . . . . . . 1,000 987
6.55% due 10/10/00 . . . . . . . . . . . . . 1,100 1,097
Capital One Bank - Notes
7.0% due 04/30/01 . . . . . . . . . . . . . . 1,000 995
First Hawaiian, Inc. - Sub. Notes
6.25% due 08/15/00 . . . . . . . . . . . . . 2,000 1,993
First Union Corp. - Notes
6.95% due 11/01/04 . . . . . . . . . . . . . 500 491
J.P. Morgan & Co., Inc. - Sr. Notes
5.75% due 02/25/04 . . . . . . . . . . . . . 1,000 949
Korea Development Bank - Bonds
7.125% due 09/17/01 . . . . . . . . . . . . . 500 496
Star Banc Corp. - Notes
5.875% due 11/01/03 . . . . . . . . . . . . . 600 572
Westpac Banking Corp. - Sub. Debs.
9.125% due 08/15/01 . . . . . . . . . . . . . 1,000 1,029
-------
10,465
Brokerage and Investment Management - 7.0%
Donaldson, Lufkin & Jenrette, Inc. - Sr. Notes
5.875% due 04/01/02 . . . . . . . . . . . . . 1,900 1,844
Lehman Brothers Holdings, Inc. - Notes
6.5% due 10/01/02 . . . . . . . . . . . . . . 470 459
6.625% due 04/01/04 . . . . . . . . . . . . . 550 533
Morgan Stanley, Dean Witter, Discover & Co.
5.625% due 01/20/04 . . . . . . . . . . . . . 500 472
Paine Webber Group, Inc. - Notes
7.0% due 03/01/00 . . . . . . . . . . . . . . 1,500 1,501
-------
4,809
Business Services - 0.7%
Comdisco, Inc. - Notes
5.95% due 04/30/02 . . . . . . . . . . . . . 500 482
Computer Equipment - 0.7%
International Business Machines Corp. - Notes
5.625% due 04/12/04 . . . . . . . . . . . . . 500 474
Cosmetics and Personal Care Products - 2.8%
Dial Corp. - Notes
5.9% due 10/25/01 . . . . . . . . . . . . . . 2,000 1,952
Diversified Operations - 3.8%
CMS Panhandle Holding - Sr. Notes
6.125% due 03/15/04 . . . . . . . . . . . . . 1,000 946
El Paso Energy Corp. - Sr. Notes
6.625% due 07/15/01 . . . . . . . . . . . . . 500 495
Tyco International Group SA
6.125% due 06/15/01 . . . . . . . . . . . . . 1,200 1,179
-------
2,620
Electric Power - 0.7%
Niagara Mohawk Power Corp. - Sr. Notes
7.25% due 10/01/02 . . . . . . . . . . . . . 499 497
Financial Services - 10.2%
Associates Corp. of North America - Sr. Notes
5.75% due 11/01/03 . . . . . . . . . . . . . 450 428
AT&T Capital Corp.
6.875% due 01/16/01 . . . . . . . . . . . . . 910 909
Finova Capital Corp. - Notes
5.875% due 10/15/01 . . . . . . . . . . . . . 500 490
Gatx Capital Corp. - Notes
6.5% due 11/01/00 . . . . . . . . . . . . . . 1,750 1,745
Heller Financial, Inc. - Notes
6.25% due 03/01/01 . . . . . . . . . . . . . 1,500 1,486
PNC Funding Corp.
7.0% due 09/01/04 . . . . . . . . . . . . . . 500 492
Salomon, Inc. - Sr. Notes
7.2% due 02/01/04 . . . . . . . . . . . . . . 500 496
Textron Financial Corp. - Notes
7.125% due 12/09/04 . . . . . . . . . . . . . 500 494
U.S. West Capital Funding, Inc. (a) - Notes
144A (a)
6.875% due 08/15/01 . . . . . . . . . . . . . 500 498
-------
7,038
Food, Beverage and Tobacco - 2.3%
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 . . . . . . . . . . . . . 1,570 1,581
Health Care Products - 2.0%
Beckman Instruments, Inc. - Sr. Notes
7.1% due 03/04/03 . . . . . . . . . . . . . . 1,475 1,399
Health Care Services - 3.2%
Columbia/HCA Healthcare Corp. - Notes
6.41% due 06/15/00 . . . . . . . . . . . . . 230 228
Tenet Healthcare Corp. - Sr. Notes
8.625% due 12/01/03 . . . . . . . . . . . . . 2,000 1,995
-------
2,223
Media - TV / Radio - 1.5%
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 . . . . . . . . . . . . . . 1,010 1,034
Natural Gas Distribution - 4.9%
Enron Corp. - Debs.
9.125% due 04/01/03 . . . . . . . . . . . . . 500 523
KN Energy, Inc. - Sr. Notes
6.45% due 03/01/03 . . . . . . . . . . . . . 1,300 1,261
Williams Cos., Inc. - Notes
6.125% due 02/01/01 . . . . . . . . . . . . . 1,600 1,584
-------
3,368
Oil - 1.5%
Coastal Corp. - Sr. Notes
8.125% due 09/15/02 . . . . . . . . . . . . . 500 512
</TABLE>
136
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS - CONTINUED
Oil - Continued
Conoco, Inc. - Notes
5.9% due 04/15/04 . . . . . . . . . . . . . . $ 550 $ 524
-------
1,036
Oil - Equipment and Services - 1.4%
Petroleum-Geo Services ASA - Bonds
6.25% due 11/19/03 . . . . . . . . . . . . . 1,000 952
Oil and Natural Gas Exploration and Production - 1.5%
Occidental Petroleum Corp. - Notes
8.5% due 11/09/01 . . . . . . . . . . . . . . 1,000 1,021
Personal and Commercial Lending - 11.1%
American General Finance Corp. - Notes
5.75% due 11/23/01 . . . . . . . . . . . . . 1,270 1,241
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 . . . . . . . . . . . . . 1,500 1,455
General Motors Acceptance Corp. - Notes
5.95% due 04/20/01 . . . . . . . . . . . . . 1,200 1,189
Household Finance Corp. - Notes
6.0% due 05/01/04 . . . . . . . . . . . . . . 1,000 950
MBNA America Bank N.A. - Notes
5.96% due 08/10/00 . . . . . . . . . . . . . 2,000 1,989
Money Store Home Equity Trust - Ser. 1997-D
AF3
6.345% due 11/15/21 . . . . . . . . . . . . . 528 523
Money Store Home Equity Trust - Ser. 1996-B
A7
7.55% due 02/15/20 . . . . . . . . . . . . . 290 290
-------
7,637
Pollution Control - 0.8%
WMX Technologies, Inc. - Notes
7.125% due 06/15/01 . . . . . . . . . . . . . 570 552
Real Estate Investment Trust - 2.0%
Franchise Finance Corp. of America - Sr. Notes
7.0% due 11/30/00 . . . . . . . . . . . . . . 1,400 1,390
Retail - Department Stores - 3.0%
Dillard's, Inc. - Notes
5.79% due 11/15/01 . . . . . . . . . . . . . 975 944
Federated Department Stores, Inc. - Sr. Notes
8.5% due 06/15/03 . . . . . . . . . . . . . . 1,090 1,124
-------
2,068
Retail - Food - 0.7%
Safeway, Inc. - Notes
5.875% due 11/15/01 . . . . . . . . . . . . . 500 489
Telecommunication Services - 2.2%
Cox Communications, Inc. - Notes
7.0% due 08/15/01 . . . . . . . . . . . . . . 1,500 1,497
Telephone - 2.2%
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 . . . . . . . . . . . . . 1,500 1,484
Transportation Services - 2.9%
Norfolk Southern Corp. - Notes
6.875% due 05/01/01 . . . . . . . . . . . . . 2,000 1,993
U.S. Government Agencies - 6.4%
Federal Home Loan Bank
8.0% due 06/01/10 . . . . . . . . . . . . . . 1,472 1,497
Federal National Mortgage Assoc.
7.0% due 12/01/10 . . . . . . . . . . . . . . 2,039 2,018
7.0% due 06/18/13 . . . . . . . . . . . . . . 882 877
-------
4,392
U.S. Governmental - 2.9%
U.S. Treasury - Notes
5.5% due 07/31/01 . . . . . . . . . . . . . . 2,000 1,978
-------
TOTAL PUBLICLY-TRADED BONDS- 94.3% 64,920
SHORT-TERM INVESTMENTS - 4.2%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . 2,908 2,908
------- -------
TOTAL INVESTMENTS- 98.5% 67,828
Cash and Receivables, less payables- 1.5% 1,016
------ -------
NET ASSETS- 100.0% $68,844
====== =======
</TABLE>
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1999, securities aggregated $498 or
0.72% of net assets of the Portfolio.
See notes to financial statements.
137
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Aerospace and Defense - 0.4%
Esterline Technologies Corp. * . . . . . . . 14,100 $ 163
GenCorp, Inc. . . . . . . . . . . . . . . . 9,900 98
-------
261
Auto and Truck Parts - 1.4%
Arvin Industries, Inc. . . . . . . . . . . . 21,000 596
Avis Rent A Car, Inc. * . . . . . . . . . . 8,100 207
Tower Automotive, Inc. * . . . . . . . . . . 9,600 148
-------
951
Automobile - 1.3%
Copart, Inc. . . . . . . . . . . . . . . . . 14,000 609
Oshkosh Truck Corp. . . . . . . . . . . . . 10,500 308
-------
917
Banks - 11.5%
Bancwest Corp. . . . . . . . . . . . . . . . 30,600 597
Bank United Corp. - Cl. A . . . . . . . . . 17,600 480
Commerce Bancorp, Inc. . . . . . . . . . . . 12,086 489
Dime Community Bancshares . . . . . . . . . 12,300 227
Downey Financial Corp. . . . . . . . . . . . 20,090 405
East West Bancorp, Inc. . . . . . . . . . . 37,000 423
Greater Bay Bancorp . . . . . . . . . . . . 6,600 283
Hudson United Bancorp . . . . . . . . . . . 15,494 396
Imperial Bancorp * . . . . . . . . . . . . . 29,042 701
MAF Bancorp, Inc. . . . . . . . . . . . . . 17,100 358
OceanFirst Financial Corp. . . . . . . . . . 18,000 312
PFF Bancorp, Inc. * . . . . . . . . . . . . 17,200 333
Provident Bankshares Corp. * . . . . . . . . 8,599 149
Republic Bancorp, Inc. . . . . . . . . . . . 47,410 576
Richmond County Financial Corp. . . . . . . 14,100 255
Silicon Valley Bancshares * . . . . . . . . 13,800 683
Southwest Bancorporation of Texas, Inc. * . 13,200 261
Washington Federal, Inc. . . . . . . . . . . 32,700 646
Webster Financial Corp. . . . . . . . . . . 16,300 384
-------
7,958
Brokerage and Investment Management - 1.2%
Affiliated Managers Group, Inc. * . . . . . 7,100 287
Jefferies Group, Inc. . . . . . . . . . . . 24,400 537
-------
824
Business Services - 0.4%
American Management Systems, Inc. * . . . . 8,800 276
Chemicals - 2.2%
A. Schulman, Inc. . . . . . . . . . . . . . 9,900 161
Ferro Corp. . . . . . . . . . . . . . . . . 12,000 264
Geon Co. . . . . . . . . . . . . . . . . . . 8,000 260
Spartech Corp. . . . . . . . . . . . . . . . 10,500 339
W.R. Grace & Co. . . . . . . . . . . . . . . 36,900 512
-------
1,536
Commercial Services - 0.9%
Bowne & Co., Inc. . . . . . . . . . . . . . 11,400 154
DeVry, Inc. * . . . . . . . . . . . . . . . 16,800 313
Mail-Well Holdings, Inc. * . . . . . . . . . 12,600 170
-------
637
Computer Software and Services - 1.0%
Acclaim Entertainment, Inc. * . . . . . . . 21,500 110
Computer Task Group, Inc. . . . . . . . . . 11,500 170
Micros Systems, Inc. . . . . . . . . . . . . 5,600 415
-------
695
Construction - 3.2%
Centex Construction Products, Inc. . . . . . 4,500 176
Elcor Corp. . . . . . . . . . . . . . . . . 12,700 383
Foster Wheeler Corp. . . . . . . . . . . . . 21,100 187
Granite Construction, Inc. . . . . . . . . . 15,100 278
Insituform Technologies, Inc. - Cl. A * . . 15,300 432
Nortek, Inc. . . . . . . . . . . . . . . . . 5,600 157
NVR, Inc. * . . . . . . . . . . . . . . . . 11,900 568
-------
2,181
Consumer - Miscellaneous - 0.6%
Fossil, Inc. * . . . . . . . . . . . . . . . 10,800 250
Tupperware Corp. . . . . . . . . . . . . . . 11,500 195
-------
445
Containers - 0.6%
Healthcare Realty Trust, Inc. . . . . . . . 26,000 406
Cosmetics and Personal Care Products - 0.8%
AptarGroup, Inc. . . . . . . . . . . . . . . 22,100 555
Diversified Operations - 2.5%
Chemed Corp. . . . . . . . . . . . . . . . . 10,800 309
Dexter Corp. . . . . . . . . . . . . . . . . 12,300 489
Gerber Scientific, Inc. . . . . . . . . . . 9,900 217
Mark IV Industries, Inc. . . . . . . . . . . 7,200 127
Roper Industries, Inc. . . . . . . . . . . . 5,300 201
Waste Connections, Inc. * . . . . . . . . . 16,900 244
Watts Industries, Inc. - Cl. A . . . . . . . 9,100 134
-------
1,721
Electric Power - 2.5%
Cleco Corp. . . . . . . . . . . . . . . . . 14,000 449
Idacorp, Inc. . . . . . . . . . . . . . . . 22,500 603
Minnesota Power, Inc. . . . . . . . . . . . 9,400 159
Public Service Co. of New Mexico . . . . . . 32,000 520
-------
1,731
Electrical Equipment - 0.3%
Integrated Device Technology, Inc. * . . . . 8,200 238
Electronic Products and Services - 5.7%
Cypress Semiconductor Corp. * . . . . . . . 7,100 230
Dallas Semiconductor Corp. . . . . . . . . . 6,700 432
Elantec Semiconductor, Inc. * . . . . . . . 7,400 244
Kemet Corp. * . . . . . . . . . . . . . . . 6,100 275
Lam Research Corp. * . . . . . . . . . . . . 5,700 636
Lattice Semiconductor Corp. * . . . . . . . 4,400 207
Park Electrochemical Corp. . . . . . . . . . 7,400 197
</TABLE>
138
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Electronic Products and Services - Continued
PerkinElmer, Inc. . . . . . . . . . . . . . 10,200 $ 425
Pioneer Standard Electronics, Inc. . . . . . 11,300 163
Sensormatic Electronics Corp. * . . . . . . 19,400 338
Tektronix, Inc. . . . . . . . . . . . . . . 8,600 334
Three-Five Systems, Inc. * . . . . . . . . . 10,267 421
-------
3,902
Engineering and Construction - 0.4%
EMCOR Group, Inc. * . . . . . . . . . . . . 14,700 268
Financial Services - 1.1%
Advanta Corp. - Cl. A . . . . . . . . . . . 28,800 526
Doral Financial Corp. . . . . . . . . . . . 20,800 256
-------
782
Food, Beverage and Tobacco - 2.8%
Canandaigua Brands, Inc. - Cl. A * . . . . . 3,100 158
Corn Products International, Inc. . . . . . 26,000 851
Earthgrains Co. . . . . . . . . . . . . . . 7,300 118
International Multifoods Corp. . . . . . . . 8,200 109
Universal Corp. . . . . . . . . . . . . . . 29,600 675
-------
1,911
Health Care Products - 1.6%
Alpharma, Inc. - Cl. A . . . . . . . . . . . 14,300 440
Datascope Corp. * . . . . . . . . . . . . . 7,000 280
Hanger Orthopedic Group, Inc. . . . . . . . 12,400 124
Mentor Corp. Minnesota . . . . . . . . . . . 4,900 126
Scott Technologies, Inc. . . . . . . . . . . 8,300 157
-------
1,127
Health Care Services - 0.9%
Bindley Western Industries, Inc. . . . . . . 28,221 425
Hooper Holmes, Inc. . . . . . . . . . . . . 8,400 216
-------
641
Household Appliances / Furnishings - 1.4%
Ethan Allen Interiors, Inc. . . . . . . . . 5,550 178
Salton, Inc. * . . . . . . . . . . . . . . . 7,600 254
Springs Industries, Inc. - Cl. A . . . . . . 13,500 539
-------
971
Housing - 0.5%
Pulte Corp. . . . . . . . . . . . . . . . . 14,600 329
Insurance - 5.2%
Commerce Group, Inc. . . . . . . . . . . . . 8,900 233
Delphi Financial Group, Inc. - Cl. A * . . . 13,399 402
E.W. Blanch Holdings, Inc. . . . . . . . . . 3,400 208
Enhance Financial Services Group, Inc. . . . 16,900 275
Everest Reinsurance Holdings . . . . . . . . 8,000 179
Fidelity National Financial, Inc. . . . . . 9,800 141
Ohio Casualty Corp. . . . . . . . . . . . . 19,200 308
Presidential Life Corp. . . . . . . . . . . 10,000 184
Radian Group, Inc. . . . . . . . . . . . . . 5,700 272
Selective Insurance Group . . . . . . . . . 39,300 675
Stancorp Financial Group, Inc. . . . . . . . 7,400 186
The MONY Group, Inc. . . . . . . . . . . . . 11,700 341
UICI * . . . . . . . . . . . . . . . . . . . 14,200 150
-------
3,554
Leisure and Recreation - 2.3%
Argosy Gaming Co. * . . . . . . . . . . . . 24,200 377
Aztar Corp. * . . . . . . . . . . . . . . . 16,100 175
Bally Total Fitness Holding Corp. * . . . . 7,400 198
Extended Stay America, Inc. * . . . . . . . 21,700 165
Pegasus Systems, Inc. * . . . . . . . . . . 3,800 229
Station Casinos, Inc. * . . . . . . . . . . 18,400 413
-------
1,557
Machinery - 4.1%
Applied Science and Technology, Inc. * . . . 13,800 459
Astec Industries, Inc. * . . . . . . . . . . 8,000 150
Graco, Inc. . . . . . . . . . . . . . . . . 10,950 393
Imation Corp. * . . . . . . . . . . . . . . 14,700 493
JLG Industries, Inc. . . . . . . . . . . . . 15,200 242
Manitowoc Co., Inc. . . . . . . . . . . . . 7,500 255
Tecumseh Products Co. - Cl. A . . . . . . . 11,500 543
Terex Corp. * . . . . . . . . . . . . . . . 10,700 297
-------
2,832
Media - Publishing - 1.5%
Hollinger International, Inc. . . . . . . . 26,900 348
McClatchy Newspapers, Inc. - Cl. A . . . . . 11,800 511
Pulitzer, Inc. . . . . . . . . . . . . . . . 4,300 173
-------
1,032
Metal Product and Fabrication - 1.4%
Intermet Corp. . . . . . . . . . . . . . . . 18,900 220
Milacron, Inc. . . . . . . . . . . . . . . . 12,400 190
Worthington Industries, Inc. . . . . . . . . 31,800 527
-------
937
Metals and Mining - 1.1%
Commonwealth Industries, Inc. . . . . . . . 23,300 303
Maverick Tube Corp. * . . . . . . . . . . . 8,500 210
Quanex Corp. . . . . . . . . . . . . . . . . 10,200 260
-------
773
Natural Gas Distribution - 1.7%
Energen Corp. . . . . . . . . . . . . . . . 14,800 267
Indiana Energy, Inc. . . . . . . . . . . . . 9,400 167
Peoples Energy Corp. . . . . . . . . . . . . 12,500 419
Washington Gas Light Co. . . . . . . . . . . 10,600 291
-------
1,144
Oil - 0.4%
UTI Energy Corp. * . . . . . . . . . . . . . 12,500 288
Oil - Equipment and Services - 2.0%
Dril Quip, Inc. * . . . . . . . . . . . . . 6,800 206
Hanover Compressor Co. * . . . . . . . . . . 9,000 340
ONEOK, Inc. . . . . . . . . . . . . . . . . 13,600 342
SEACOR SMIT, Inc. . . . . . . . . . . . . . 9,800 507
-------
1,395
</TABLE>
139
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Oil and Natural Gas Exploration and Production - 4.9%
Brown Tom, Inc. * . . . . . . . . . . . . . 21,100 $ 282
Equitable Resources, Inc. . . . . . . . . . 18,700 624
Helmerich & Payne, Inc. . . . . . . . . . . 13,800 301
Houston Exploration Co. * . . . . . . . . . 14,900 295
Northwest Natural Gas Co. . . . . . . . . . 19,600 430
Plains Resources, Inc. * . . . . . . . . . . 19,100 239
Stone Energy Corp. * . . . . . . . . . . . . 8,600 307
Tesoro Petroleum Corp. * . . . . . . . . . . 51,200 592
Valero Energy Corp. . . . . . . . . . . . . 14,600 290
-------
3,360
Paper and Forest Products - 2.3%
P.H. Glatfelter Co. . . . . . . . . . . . . 36,700 534
Pope & Talbot, Inc. . . . . . . . . . . . . 35,100 562
Rock-Tenn Co. - Cl. A . . . . . . . . . . . 12,600 186
United Stationers, Inc. * . . . . . . . . . 9,500 271
-------
1,553
Personal and Commercial Lending - 0.3%
Metris Cos., Inc. . . . . . . . . . . . . . 5,000 178
Precious Metals/Gems/Stones - 0.9%
Stillwater Mining Co. * . . . . . . . . . . 18,550 591
Real Estate Development - 2.3%
LNR Property Corp. . . . . . . . . . . . . . 31,200 620
Ryland Group, Inc. . . . . . . . . . . . . . 12,100 279
Standard Pacific Corp. . . . . . . . . . . . 61,800 680
-------
1,579
Real Estate Investment Trust - 8.4%
Bedford Property Investors, Inc. . . . . . . 20,400 348
Capital Automotive REIT . . . . . . . . . . 51,000 622
CBL & Associates Properties, Inc. . . . . . 6,200 128
Essex Property Trust, Inc. . . . . . . . . . 8,900 303
FelCor Lodging Trust, Inc. . . . . . . . . . 34,136 597
Gables Residential Trust . . . . . . . . . . 21,600 518
Hospitality Properties Trust . . . . . . . . 12,100 231
International Rectifier Corp. * . . . . . . 8,700 226
IRT Property Co. . . . . . . . . . . . . . . 34,900 273
Kilroy Realty Corp. . . . . . . . . . . . . 8,200 180
Mack-Cali Realty Corp. . . . . . . . . . . . 6,200 162
MeriStar Hospitality Corp. . . . . . . . . . 20,300 325
Mid-America Apartment Communities, Inc. . . 20,400 461
Prentiss Properties Trust . . . . . . . . . 14,700 309
Shurgard Storage Centers, Inc. . . . . . . . 21,100 489
SL Green Realty Corp. . . . . . . . . . . . 16,600 361
The Macerich Co. . . . . . . . . . . . . . . 13,200 275
-------
5,808
Retail - Department Stores - 3.5%
AnnTaylor Stores Corp. * . . . . . . . . . . 3,600 124
Cato Corp. - Cl. A . . . . . . . . . . . . . 21,400 270
Dollar Thrifty Automotive Group, Inc. * . . 29,000 694
Footstar, Inc. * . . . . . . . . . . . . . . 13,600 415
Musicland Stores Corp. * . . . . . . . . . . 24,500 207
Shopko Stores, Inc. . . . . . . . . . . . . 10,900 251
United Auto Group, Inc. * . . . . . . . . . 12,700 114
Zale Corp. * . . . . . . . . . . . . . . . . 7,700 372
-------
2,447
Retail - Food - 1.7%
CEC Entertainment, Inc. * . . . . . . . . . 7,700 218
Jack in the Box, Inc. * . . . . . . . . . . 5,900 122
Ruby Tuesday, Inc. . . . . . . . . . . . . . 17,600 320
Sonic Corp. * . . . . . . . . . . . . . . . 7,600 217
The Cheesecake Factory, Inc. * . . . . . . . 8,700 305
-------
1,182
Shoe and Apparel Manufacturing - 1.2%
K-Swiss, Inc. - Cl. A . . . . . . . . . . . 8,200 152
Kellwood Co. . . . . . . . . . . . . . . . . 10,900 212
OshKosh B'Gosh, Inc. - Cl. A . . . . . . . . 12,200 257
Russell Corp. . . . . . . . . . . . . . . . 10,800 181
-------
802
Steel - 2.1%
Reliance Steel & Aluminum Co. . . . . . . . 15,750 369
Ryerson Tull, Inc. . . . . . . . . . . . . . 22,900 445
Texas Industries, Inc. . . . . . . . . . . . 14,300 609
-------
1,423
Telecommunication Equipment - 0.3%
Polycom, Inc. * . . . . . . . . . . . . . . 3,400 217
Telecommunication Services - 0.7%
Price Communications Corp. * . . . . . . . . 18,600 517
Transportation Services - 2.5%
America West Holdings Corp. - Cl. B * . . . 22,400 465
American Freightways Corp. * . . . . . . . . 11,400 184
Arkansas Best Corp. * . . . . . . . . . . . 17,200 206
Offshore Logistics, Inc. * . . . . . . . . . 29,300 275
Roadway Express, Inc. . . . . . . . . . . . 10,800 234
USFreightways Corp. . . . . . . . . . . . . 4,900 235
Werner Enterprises, Inc. . . . . . . . . . . 11,100 156
-------
1,755
-------
TOTAL COMMON STOCK- 96.0% 66,187
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.5%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . . $ 2,390 2,390
------- -------
TOTAL INVESTMENTS- 99.5% 68,577
Cash and Receivables, less payables- 0.5% 323
------- -------
NET ASSETS- 100.0% $68,900
======= =======
</TABLE>
* Non-income producing security.
See notes to financial statements.
140
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK
Argentina - 0.2%
Banco de Galicia y Buenos Aires SA de CV -
ADR (BANK) . . . . . . . . . . . . . . . 1,702 $ 34
Banco Frances del Rio de la Plata SA - ADR
(BANK). . . . . . . . . . . . . . . . . . 2,277 54
Telefonica de Argentina SA - ADR (UTIT) . 3,520 108
-------
196
Australia - 2.2%
Brambles Industries, Ltd. (DIOP) . . . . . 4,000 111
Broken Hill Proprietary Co., Ltd. (DIOP) . 12,188 160
Colonial, Ltd. (FINL) . . . . . . . . . . 38,278 171
Commonwealth Bank of Australia (BANK) . . 12,248 211
Lend Lease Corp. (FINL) . . . . . . . . . 8,052 113
News Corp., Ltd. (MEDI) . . . . . . . . . 23,242 226
Publishing & Broadcasting, Ltd. (MEDP) . . 24,000 183
TABCORP Holdings, Ltd. (LEIS) . . . . . . 16,000 108
Telstra Corp. * (TELS) . . . . . . . . . . 9,000 32
Telstra Corp., Ltd. (TELS) . . . . . . . . 44,000 239
Westpac Banking Corp., Ltd. (BANK) . . . . 27,694 191
-------
1,745
Belgium - 1.1%
Dexia (LEND) . . . . . . . . . . . . . . . 559 90
Dexia * (LEND) . . . . . . . . . . . . . . 389 64
Dexia - VVPR * (LEND) 389
Fortis (B) (INSU) . . . . . . . . . . . . 8,040 290
KBC Bancassurance Holding NV (BANK) . . . 6,770 365
UCB SA (HEAL) . . . . . . . . . . . . . . 940 41
-------
850
Bermuda - 0.1%
Dao Heng Bank Group, Ltd. (BANK) . . . . . 15,000 77
Brazil - 1.5%
Companhia Energetica de Minas Gerias -
ADR (UTIE). . . . . . . . . . . . . . . . 3,121 70
Compania Brasileira de Distribuicao Grupo
Pao de Acucar - ADR (RETF) . . . . . . . 4,139 134
Telecomunicacoes Brasileiras SA - ADR
(UTIT). . . . . . . . . . . . . . . . . . 7,358 946
Unibanco - Uniao de Bancos Brasileiros SA -
GDR (BANK) . . . . . . . . . . . . . . . 2,000 60
-------
1,210
Canada - 0.8%
Alcan Aluminum, Ltd. (META) . . . . . . . 2,620 108
Celestica, Inc. * (COMM) . . . . . . . . . 5,914 328
Nortel Networks Corp. (TELE) . . . . . . . 1,220 123
Royal Bank of Canada (BANK) . . . . . . . 1,090 48
-------
607
China - 0.1%
Huaneng Power International, Inc. - ADR *
(UTIE). . . . . . . . . . . . . . . . . . 6,000 63
Denmark - 0.3%
Den Danske Bank (BANK) . . . . . . . . . . 780 85
Tele Danmark A/S (TELS) . . . . . . . . . 1,760 131
Unidanmark A/S - Cl. A (BANK) . . . . . . 790 56
-------
272
Finland - 2.1%
Nokia Oyj (TELE) . . . . . . . . . . . . . 9,120 1,654
France - 10.2%
Alcatel Alsthom (TELE) . . . . . . . . . . 2,214 509
Aventis SA * (HEAL) . . . . . . . . . . . 1,252 73
AXA SA (INSU) . . . . . . . . . . . . . . 3,514 490
Banque Nationale de Paris (BANK) . . . . . 4,070 376
Cap Gemini SA (COMM) . . . . . . . . . . . 1,300 330
Carrefour SA (RETF) . . . . . . . . . . . 4,036 744
Compagnie de St. Gobain (CONS) . . . . . . 1,400 263
Group Danone * (FOOD) . . . . . . . . . . 260 61
Hermes International (RETS) . . . . . . . 1,360 205
L'Oreal (HNBA) . . . . . . . . . . . . . . 105 84
Lafarge SA (CONS) . . . . . . . . . . . . 929 108
Legrand SA (ELEQ) . . . . . . . . . . . . 1,464 349
Pinault-Printemps-Redoute SA (RETS) . . . 960 253
Rhone-Poulenc SA (BANK) . . . . . . . . . 2,190 127
Sanofi-Synthelabo SA * (HEAL) . . . . . . 10,408 433
Schneider Electric SA (MACH) . . . . . . . 5,191 408
Societe Generale de Paris (BANK) . . . . . 1,118 260
Societe Television Francaise 1 (MEDI) . . 1,660 870
Sodexho Alliance SA (LEIS) . . . . . . . . 2,310 409
Total Fina SA - Cl. B (OILX) . . . . . . . 6,908 922
Vivendi (DIOP) . . . . . . . . . . . . . . 9,315 841
-------
8,115
Germany - 6.4%
Allianz AG - Reg. (INSU) . . . . . . . . . 1,050 353
Bayer AG (CHEM) . . . . . . . . . . . . . 5,419 257
Bayerische Vereinsbank AG (BANK) . . . . . 7,517 513
Deutsche Bank AG (BANK) . . . . . . . . . 4,934 417
Deutsche Telekom AG (TELS) . . . . . . . . 6,614 471
Dresdner Bank AG (BANK) . . . . . . . . . 5,911 322
Gehe AG (HEAL) . . . . . . . . . . . . . . 5,368 208
Mannesmann AG (MACH) . . . . . . . . . . . 6,650 1,604
Rhoen-Klinikum AG (HEAL) . . . . . . . . . 2,970 109
SAP AG (SOFT) . . . . . . . . . . . . . . 750 370
Siemens AG (DIOP) . . . . . . . . . . . . 1,747 222
VEBA AG (DIOP) . . . . . . . . . . . . . . 4,815 234
-------
5,080
Hong Kong - 2.8%
Cheung Kong (Holdings), Ltd. (READ) . . . 18,000 228
China Telecom (Hong Kong), Ltd. (TELS) . . 100,000 624
CLP Holdings, Ltd. (UTIE) . . . . . . . . 28,000 129
Henderson Land Development Co., Ltd.
(READ). . . . . . . . . . . . . . . . . . 29,000 186
</TABLE>
141
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Hong Kong - Continued
Cable & Wireless HKT, Ltd. (TELS) . . . . 42,800 $ 124
Hutchison Whampoa, Ltd. (COMM) . . . . . . 40,000 581
New World Development Co., Ltd. (READ) . . 27,000 61
Pacific Century Cyberworks, Ltd. * (TELE). 83,000 193
Sun Hung Kai Properties, Ltd. (REIT) . . . 10,000 104
-------
2,230
India - 0.5%
Hindustan Lever, Ltd. (HNBA) . . . . . . . 3,000 155
ICICI Ltd. - ADR * (FINL) . . . . . . . . 8,484 118
Mahanagar Telephone Nigam, Ltd. * (TELS) . 33,000 166
-------
439
Ireland - 0.2%
CBT Group Public, Ltd. - ADR * (SOFT) . . 4,946 166
Italy - 5.2%
Assicurazioni Generali (INSU) . . . . . . 6,640 219
Banca Popolare di Brescia (BANK) . . . . . 7,000 620
UniCredito Italiano SpA (BANK) . . . . . . 48,393 238
ENI SpA (OILS) . . . . . . . . . . . . . . 60,784 334
San Paolo-IMI SpA (BANK) . . . . . . . . . 18,858 256
Istituto Nazionale delle Assicurazioni (INSU) 18,000 48
Italgas SpA (UTIG) . . . . . . . . . . . . 10,000 38
Mediolanum SpA (INSU) . . . . . . . . . . 17,655 231
Seat Pagine Gialle SpA (MEDP) . . . . . . 36,000 118
Tecnost SpA (COMP) . . . . . . . . . . . . 31,800 120
Telecom Italia Mobile SpA (TELS) . . . . . 114,000 1,274
Telecom Italia SpA * (TELS) . . . . . . . 44,444 627
-------
4,123
Japan - 22.0%
Bridgestone Corp. (PART) . . . . . . . . . 4,000 88
Canon, Inc. (COMM) . . . . . . . . . . . . 20,000 795
Citizen Watch Co., Ltd. (RETS) . . . . . . 7,000 44
Daiichi Pharmaceutical Co., Ltd. (HEAL) . 4,000 52
Daiwa House Industry Co., Ltd. (HOUS) . . 13,000 97
DDI Corp. (UTIT) . . . . . . . . . . . . . 25 343
Denso Corp. (ETRN) . . . . . . . . . . . . 16,000 382
East Japan Railway Co. (TRAN) . . . . . . 32 173
Fanuc, Ltd. (ELEQ) . . . . . . . . . . . . 2,800 357
Fuji Television Network, Inc. (MEDI) . . . 9 123
Fujitsu, Ltd. (ELEQ) . . . . . . . . . . . 14,000 639
Hitachi, Ltd. (ETRN) . . . . . . . . . . . 15,000 241
Honda Motor Co. (AUTO) . . . . . . . . . . 1,000 37
Ito-Yokado Co., Ltd. (RETS) . . . . . . . 2,000 217
KAO Corp. (HNBA) . . . . . . . . . . . . . 8,000 228
Kokuyo Co. (COMM) . . . . . . . . . . . . 6,000 80
Komori Corp. (MACH) . . . . . . . . . . . 5,000 95
Kuraray Co., Ltd. (APPA) . . . . . . . . . 16,000 162
Kyocera Corp. (ETRN) . . . . . . . . . . . 6,000 1,556
Makita Corp. (CNSU) . . . . . . . . . . . 8,000 72
Marui Co., Ltd. (RETS) . . . . . . . . . . 13,000 194
Matsushita Electric Industrial Co. (ETRN) 24,000 665
Mitsubishi Corp. (DIOP) . . . . . . . . . 15,000 116
Mitsubishi Heavy Industries, Ltd. (MACH) . 71,000 237
Mitsui Fudosan (REAL) . . . . . . . . . . 32,000 217
Murata Manufacturing Co., Ltd. (ETRN) . . 6,000 1,409
NEC Corp. (COMP) . . . . . . . . . . . . . 41,000 977
Nippon Telegraph & Telephone Corp. (UTIT) 81 1,387
Nomura Securities Co., Ltd. (FUND) . . . . 26,000 469
NTT Mobile Communications Network, Inc.
(TELS). . . . . . . . . . . . . . . . . . 25 962
Sankyo Co., Ltd. (HEAL) . . . . . . . . . 14,000 288
Sekisui Chemical Co. (CHEM) . . . . . . . 20,000 89
Sekisui House, Ltd. (CONS) . . . . . . . . 15,000 133
Seven-Eleven Japan (RETF) . . . . . . . . 1,000 159
Shin-Etsu Chemical Co. (CHEM) . . . . . . 6,000 258
Shiseido Co., Ltd. (CHEM) . . . . . . . . 7,000 102
Softbank Corp. * (SOFT) . . . . . . . . . 100 96
Sony Corp. (ETRN) . . . . . . . . . . . . 5,500 1,631
Sumitomo Bank (BANK) . . . . . . . . . . . 18,000 246
Sumitomo Corp. (DIOP) . . . . . . . . . . 27,000 262
Sumitomo Electric Industries (TELE) . . . 25,000 289
TDK Corp. (COMP) . . . . . . . . . . . . . 4,000 552
Tokio Marine & Fire Insurance Co. (INSU) . 7,000 82
Tokyo Electron, Ltd. (ETRN) . . . . . . . 1,100 151
Toppan Printing Co. (CNSU) . . . . . . . . 13,000 130
Toshiba Corp. (ETRN) . . . . . . . . . . . 52,000 397
UNY Co., Ltd. (RETS) . . . . . . . . . . . 8,000 78
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL). . . . . . . . . . . . . . . . . . 7,000 245
-------
17,602
Luxembourg - 0.1%
Society Europeenne des Satellites (MEDI) . 336 49
Mexico - 1.7%
Cemex SA de CV - ADR * Participation
Certificates (CONS) . . . . . . . . . . . 4,412 123
Cemex SA de CV - CPO * (CONS) . . . . . . 8,000 45
Fomento Economico Mexicano SA de CV
(FOOD). . . . . . . . . . . . . . . . . . 45,000 201
Grupo Modelo SA de CV - Ser. C (FOOD) . . 32,000 88
Grupo Televisa SA - GDR * (MEDI) . . . . . 2,907 198
Kimberly-Clark de Mexico SA de CV
(PAPR). . . . . . . . . . . . . . . . . . 23,170 90
Telefonos de Mexico SA - ADR (UTIT) . . . 5,560 626
-------
1,371
Netherlands - 8.4%
ABN Amro Holding NV (BANK) . . . . . . . . 12,346 308
Akzo Nobel NV (CHEM) . . . . . . . . . . . 1,110 56
ASM Lithography Holding NV (ETRN) . . . . 7,120 791
CSM NV (FOOD) . . . . . . . . . . . . . . 8,796 188
</TABLE>
142
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Netherlands - Continued
Elsevier NV (MEDP) . . . . . . . . . . . . 15,850 $ 189
Equant (COMP) . . . . . . . . . . . . . . 2,485 282
Fortis (NL) NV (INSU) . . . . . . . . . . 11,430 412
Gucci Group NV (APPA) . . . . . . . . . . 2,135 245
ING Groep NV (BANK) . . . . . . . . . . . 15,140 914
Koninklijke (Royal) Philips Electronics NV
(ETRN). . . . . . . . . . . . . . . . . . 5,406 735
KPN NV (UTIT) . . . . . . . . . . . . . . 1,730 169
Royal Dutch Petroleum Co. (OILS) . . . . . 7,650 469
STMicroelectronics * (ETRN) . . . . . . . 4,866 749
TNT Post Group NV (TRAN) . . . . . . . . . 1,990 57
United Pan-Europe Communications NV *
(TELS). . . . . . . . . . . . . . . . . . 932 119
VNU NV (MEDP) . . . . . . . . . . . . . . 4,580 241
Wolters Kluwer NV - CVA (MEDP) . . . . . . 24,082 815
-------
6,739
New Zealand - 0.2%
Telecom Corp. of New Zealand, Ltd. (TELS) 35,000 165
Norway - 0.5%
Norsk Hydro ASA (DIOP) . . . . . . . . . . 1,890 79
Orkla ASA (DIOP) . . . . . . . . . . . . . 19,210 331
-------
410
Portugal - 0.3%
Estabelecimentos Jeronimo Martins & Filho,
Sociedade Gestora de Participacoes Sociais
SA (RETF) . . . . . . . . . . . . . . . . 9,813 251
Singapore - 0.7%
Singapore Press Holdings, Ltd. (MEDP) . . 5,138 111
Singapore Telecommunications, Ltd. (TELS) 35,000 72
United Overseas Bank, Ltd. (BANK) . . . . 39,072 345
-------
528
South Korea - 1.2%
Korea Telecom Corp. - ADR * (TELS) . . . . 4,000 299
Pohang Iron & Steel Co., Ltd. - ADR (STEE) 2,053 72
Samsung Electronics (ETRN) . . . . . . . . 1,950 457
SK Telecom Co., Ltd. (TELS) . . . . . . . 30 107
-------
935
Spain - 2.9%
Banco Bilbao Vizcaya SA (BANK) . . . . . . 6,820 97
Banco Popular Espanol SA (BANK) . . . . . 1,200 78
Banco Santander Central Hispano SA
(BANK). . . . . . . . . . . . . . . . . . 33,860 383
Corporacion Bancaria de Espana SA (BANK) 5,710 134
Endesa SA (UTIE) . . . . . . . . . . . . . 9,518 189
Gas Natural SDG SA - E Shares (UTIG) . . . 4,810 111
Iberdrola SA (UTIE) . . . . . . . . . . . 14,690 204
Repsol SA (OILX) . . . . . . . . . . . . . 9,172 213
Telefonica SA (UTIT) . . . . . . . . . . . 36,520 912
-------
2,321
Sweden - 2.9%
Atlas Copco AB (MACH) . . . . . . . . . . 3,650 104
Electrolux AB - Ser. B (APPL) . . . . . . 17,700 445
Esselte AB - Cl. B (COMM) . . . . . . . . 910 7
Hennes & Mauritz AB - B Shares (RETS) . . 22,930 768
Nordbanken Holding (BANK) . . . . . . . . 47,884 281
Sandvik AB - Cl. B (MACH) . . . . . . . . 5,320 170
Securitas AB - B Shares (COMM) . . . . . . 12,856 233
Telefonaktiebolaget LM Ericsson - B Shares
(TELE). . . . . . . . . . . . . . . . . . 5,140 330
-------
2,338
Switzerland - 4.7%
ABB, Ltd. * (ENGI) . . . . . . . . . . . . 4,667 570
Adecco SA - Reg. (COMM) . . . . . . . . . 1,235 962
Credit Suisse Group - Reg. (BANK) . . . . 1,370 272
Nestle SA (FOOD) . . . . . . . . . . . . . 460 843
Roche Holding AG (HEAL) . . . . . . . . . 51 605
Swisscom AG - Reg. (UTIT) . . . . . . . . 261 106
UBS AG - Reg. (BANK) . . . . . . . . . . . 1,586 428
-------
3,786
Taiwan - 0.2%
Hon Hai Precision Industry Co., Ltd. - GDR
144A * (a) (ETRN) . . . . . . . . . . . 7,092 137
United Kingdom - 15.4%
Abbey National First Capital BV (BANK) . . 18,000 288
AstraZeneca Group plc (HEAL) . . . . . . . 12,701 528
BG Group plc (UTIG) . . . . . . . . . . . 16,522 107
BP Amoco plc (OILE) . . . . . . . . . . . 34,000 343
Cable & Wireless plc (TELS) . . . . . . . 52,100 894
Cadbury Schweppes plc (FOOD) . . . . . . . 55,200 333
Caradon plc (CONS) . . . . . . . . . . . . 47,500 119
Centrica plc * (UTIG) . . . . . . . . . . 18,900 55
Compass Group plc (FOOD) . . . . . . . . . 51,000 700
David S. Smith Holdings plc (PAPR) . . . . 24,000 77
Diageo plc (FOOD) . . . . . . . . . . . . 47,512 379
Electrocomponents plc (ETRN) . . . . . . . 15,000 166
GKN plc (PART) . . . . . . . . . . . . . . 4,000 65
Glaxo Wellcome plc (HEAL) . . . . . . . . 29,000 822
Hays plc (DIOP) . . . . . . . . . . . . . 3,100 49
Hilton Group plc (LEIS) . . . . . . . . . 28,000 91
HSBC Holdings plc (BANK) . . . . . . . . . 20,400 286
John Laing plc (HOUS) . . . . . . . . . . 3,000 13
Kingfisher plc (RETS) . . . . . . . . . . 68,000 755
Marconi plc (TELE) . . . . . . . . . . . . 21,600 381
National Westminster Bank plc (BANK) . . . 62,000 1,332
Rank Group plc (DIOP) . . . . . . . . . . 7,310 24
Reed International plc (MEDP) . . . . . . 80,000 601
Rio Tinto plc - Reg. (DIOP) . . . . . . . 20,000 480
</TABLE>
143
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
United Kingdom - Continued
Safeway plc (RETF) . . . . . . . . . . . . 19,000 $ 66
Shell Transport & Trading Co. plc (OILX) . 129,000 1,072
SmithKline Beecham plc (HEAL) . . . . . . 64,300 815
Tesco plc (RETF) . . . . . . . . . . . . . 72,900 221
Tomkins plc (DIOP) . . . . . . . . . . . . 58,496 191
Unilever plc (CNSU) . . . . . . . . . . . 60,928 448
United News & Media plc (MEDP) . . . . . . 17,500 221
Vodafone Group plc (TELS) . . . . . . . . 75,500 376
--------
12,298
--------
TOTAL COMMON STOCK- 94.9% 75,757
--------
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) . . . . . . . . . 15,247 131
Brazil - 0.6%
Banco Itau SA (BANK) . . . . . . . . . . . 970,000 83
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) . . . . . . . . . . . . . . 1,701,000 38
Petroleo Brasileiro SA - Petrobras (OILS) 1,012,000 257
Telecommunicacoes de Sao Paulo * (TELS) . 3,179,956 75
Telesp Celular SA - Cl. B * (TELS) . . . . 540,000 43
--------
496
Germany - 0.1%
Fresenius AG (HEAL) . . . . . . . . . . . 290 53
--------
TOTAL PREFERRED STOCK- 0.9% 680
<CAPTION>
Par
Value
(000's)
<S> <C> <C>
SHORT-TERM INVESTMENTS - 4.1%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . $ 3,255 3,255
---------- -------
TOTAL INVESTMENTS- 99.9% 79,692
Cash and Receivables, less payables- 0.1% 102
---------- -------
NET ASSETS- 100.0% $79,794
========== =======
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt
GDR - Global Depository Receipt
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1999, securities aggregated
$137 or .17% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Banks . . . . . . . . . . . . . . . . BANK $9,788 12.8%
Electronic Products and Services . . ETRN 9,467 12.4%
Telecommunication Services . . . . . TELS 6,799 8.9%
Telephone . . . . . . . . . . . . . . UTIT 4,596 6.0%
Health Care Products . . . . . . . . HEAL 4,272 5.6%
Telecommunication Equipment . . . . . TELE 3,479 4.6%
Commercial Services . . . . . . . . . COMM 3,316 4.3%
Diversified Operations . . . . . . . DIOP 3,100 4.1%
Food, Beverage and Tobacco . . . . . FOOD 2,792 3.7%
Machinery . . . . . . . . . . . . . . MACH 2,618 3.4%
Retail - Department Stores . . . . . RETS 2,515 3.3%
Media - Publishing . . . . . . . . . MEDP 2,479 3.2%
Oil and Natural Gas Exploration
and Production . . . . . . . . . . OILX 2,207 2.9%
Insurance . . . . . . . . . . . . . . INSU 2,125 2.8%
Computer Equipment . . . . . . . . . COMP 1,932 2.5%
Media - TV / Radio . . . . . . . . . MEDI 1,597 2.1%
Retail - Food . . . . . . . . . . . RETF 1,575 2.1%
Electrical Equipment . . . . . . . . ELEQ 1,344 1.8%
Oil . . . . . . . . . . . . . . . . OILS 1061 1.4%
Construction . . . . . . . . . . . . CONS 791 1.0%
Chemicals . . . . . . . . . . . . . . CHEM 761 1.0%
Electric Power . . . . . . . . . . . UTIE 693 1.0%
Consumer - Miscellaneous . . . . . . CNSU 650 0.9%
Computer Software and Services . . . SOFT 631 0.8%
Leisure and Recreation . . . . . . . LEIS 608 0.8%
Engineering and Construction . . . . ENGI 570 0.7%
Real Estate Development . . . . . . . READ 475 0.6%
Brokerage and Investment
Management . . . . . . . . . . . . FUND 469 0.6%
Cosmetics and Personal Care
Products . . . . . . . . . . . . . HNBA 468 0.6%
Household Appliances /
Furnishings . . . . . . . . . . . . APPL 445 0.6%
Shoe and Apparel Manufacturing . . . APPA 406 0.5%
Financial Services . . . . . . . . . FINL 402 0.5%
Oil - Equipment and Services . . . . OILE 343 0.5%
Natural Gas Distribution . . . . . . UTIG 310 0.4%
Transportation Services . . . . . . TRAN 230 0.3%
Real Estate Operations . . . . . . . REAL 217 0.3%
Paper and Forest Products . . . . . . PAPR 167 0.2%
Personal and Commercial
Lending . . . . . . . . . . . . . LEND 154 0.2%
Auto and Truck Parts . . . . . . . . PART 154 0.2%
Housing . . . . . . . . . . . . . . . HOUS 110 0.1%
Metals and Mining . . . . . . . . . . META 108 0.1%
Real Estate Investment Trust . . . . REIT 104 0.1%
Steel . . . . . . . . . . . . . . . . STEE 72 0.1%
Automobile . . . . . . . . . . . . . AUTO 37 0.0%
------- ------
$76,437 100.0%
======= ======
</TABLE>
144
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.2%
B.F. Goodrich Co. . . . . . . . . . . 3,500 $ 96
Boeing Co. . . . . . . . . . . . . . . 33,368 1,387
General Dynamics Corp. . . . . . . . . 7,300 385
Honeywell International, Inc. . . . . 28,262 1,631
Lockheed Martin Corp. . . . . . . . . 13,800 302
Northrop Grumman Corp. . . . . . . . . 2,300 124
Raytheon Co. - Cl. B . . . . . . . . . 12,300 327
United Technologies Corp. . . . . . . 17,000 1,105
--------
5,357
Agricultural Operations - 0.2%
Monsanto Co. . . . . . . . . . . . . . 22,300 794
Auto and Truck Parts - 0.7%
AutoZone, Inc. * . . . . . . . . . . . 4,800 155
Cooper Tire & Rubber Co. . . . . . . . 2,100 32
Cummins Engine Company, Inc. . . . . . 1,200 58
Dana Corp. . . . . . . . . . . . . . . 6,215 186
General Motors Corp. . . . . . . . . . 22,600 1,643
Genuine Parts Co. . . . . . . . . . . 6,650 165
Goodyear Tire & Rubber Co. . . . . . . 5,100 144
ITT Industries, Inc. . . . . . . . . . 2,900 97
Johnson Controls, Inc. . . . . . . . . 2,900 165
Navistar International Corp., Inc. -
Cl. B . . . . . . . . . . . . . . . . 2,400 114
PACCAR, Inc. . . . . . . . . . . . . . 2,800 124
Pep Boys - Manny, Moe & Jack . . . . . 1,648 15
TRW, Inc. . . . . . . . . . . . . . . 4,500 234
--------
3,132
Automobile - 0.6%
Delphi Automotive Systems Corp. . . . 20,469 322
Ford Motor Co. . . . . . . . . . . . . 43,000 2,298
--------
2,620
Banks - 4.8%
AmSouth Bancorporation . . . . . . . . 13,100 253
Bank of America Corp. . . . . . . . . 60,768 3,050
Bank of New York Co., Inc. . . . . . . 25,900 1,036
Bank One Corp. . . . . . . . . . . . . 40,950 1,313
BB&T Corporation . . . . . . . . . . . 11,300 309
Chase Manhattan Corp. . . . . . . . . 29,100 2,261
Comerica, Inc. . . . . . . . . . . . . 5,300 247
Fifth Third Bancorp . . . . . . . . . 11,050 811
First Union Corp. . . . . . . . . . . 35,046 1,150
Firstar Corp. . . . . . . . . . . . . 34,764 734
FleetBoston Financial Corp. . . . . . 32,470 1,130
Golden West Financial Corp. . . . . . 5,700 191
Huntington Bancshares, Inc. . . . . . 7,565 181
J.P. Morgan & Co., Inc. . . . . . . . 6,200 785
KeyCorp . . . . . . . . . . . . . . . 16,100 356
National City Corp. . . . . . . . . . 22,000 521
Northern Trust Corp. . . . . . . . . . 8,000 424
Old Kent Financial Corp. . . . . . . . 4,100 145
PNC Bank Corp. . . . . . . . . . . . . 10,100 449
Regions Financial Corp. . . . . . . . 7,800 196
Republic New York Corp. . . . . . . . 3,800 274
SouthTrust Corp. . . . . . . . . . . . 6,300 238
State Street Corp. . . . . . . . . . . 5,800 424
Summit Bancorp . . . . . . . . . . . . 6,600 202
Suntrust Banks, Inc. . . . . . . . . . 11,400 785
Synovus Financial Corp. . . . . . . . 10,350 206
U.S. Bancorp . . . . . . . . . . . . . 25,918 617
Union Planters Corp. . . . . . . . . . 5,300 209
Wachovia Corp. . . . . . . . . . . . . 7,200 490
Washington Mutual, Inc. . . . . . . . 20,618 536
Wells Fargo & Co. . . . . . . . . . . 58,500 2,366
--------
21,889
Brokerage and Investment Management - 5.6%
Aim Stic Prime Fund . . . . . . . . . 10,793,823 10,794
Bear Stearns Cos., Inc. . . . . . . . 4,032 172
Charles Schwab Corp. . . . . . . . . . 28,750 1,103
Franklin Resources, Inc. . . . . . . . 9,100 292
Lehman Brothers Holdings, Inc. . . . . 4,300 364
Merrill Lynch & Co., Inc. . . . . . . 13,000 1,086
Morgan Stanley, Dean Witter, Discover &
Co. . . . . . . . . . . . . . . . . . 19,650 2,805
Paine Webber Group, Inc. . . . . . . . 4,700 182
Prime Obligation Fund . . . . . . . . 8,286,040 8,286
T. Rowe Price Associates, Inc. . . . . 4,000 148
--------
25,232
Business Services - 0.3%
Automatic Data Processing, Inc. . . . 22,400 1,207
Dun & Bradstreet Corp. . . . . . . . . 6,000 177
H & R Block, Inc. . . . . . . . . . . 3,400 149
IKON Office Solutions, Inc. . . . . . 4,900 33
--------
1,566
Chemicals - 1.1%
Air Products & Chemicals, Inc. . . . . 8,400 282
Dow Chemical Co. . . . . . . . . . . . 7,800 1,042
E.I. du Pont de Nemours & Co. . . . . 37,182 2,449
Eastman Chemical Co. . . . . . . . . . 3,000 143
Engelhard Corp. . . . . . . . . . . . 3,800 72
Great Lakes Chemical Corp. . . . . . . 1,900 72
Hercules, Inc. . . . . . . . . . . . . 3,400 95
Praxair, Inc. . . . . . . . . . . . . 5,500 277
Rohm & Haas Co. . . . . . . . . . . . 8,027 327
Sigma-Aldrich Corp. . . . . . . . . . 3,300 99
Union Carbide Corp. . . . . . . . . . 4,600 307
W.R. Grace & Co. . . . . . . . . . . . 1,700 24
--------
5,189
Commercial Services - 0.5%
Cendant Corp. * . . . . . . . . . . . 25,599 680
Deluxe Corp. . . . . . . . . . . . . . 2,700 74
Ecolab, Inc. . . . . . . . . . . . . . 4,800 188
Equifax, Inc. . . . . . . . . . . . . 5,400 127
Interpublic Group Cos., Inc. . . . . . 10,000 577
Omnicom Group, Inc. . . . . . . . . . 6,300 630
145
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Commercial Services - Continued
Quintiles Transnational Corp. * . . . 3,800 $ 71
R.R. Donnelley & Sons Co. . . . . . . 4,100 102
--------
2,449
Computer Equipment - 6.8%
3Com Corp. * . . . . . . . . . . . . . 12,500 588
Apple Computer, Inc. * . . . . . . . . 5,800 596
Compaq Computer Corp. . . . . . . . . 60,711 1,643
Comverse Technology, Inc. * . . . . . 2,600 376
Dell Computer Corp. * . . . . . . . . 90,300 4,605
Gateway, Inc. * . . . . . . . . . . . 11,100 800
Hewlett-Packard Co. . . . . . . . . . 36,200 4,125
Intel Corp. . . . . . . . . . . . . . 118,600 9,762
International Business Machines Corp. 64,000 6,912
Lexmark International Group, Inc. - Cl.
A * . . . . . . . . . . . . . . . . . 4,400 398
Network Appliance, Inc. * . . . . . . 5,400 449
Xerox Corp. . . . . . . . . . . . . . 23,600 535
--------
30,789
Computer Software and Services - 11.8%
Adobe Systems, Inc. . . . . . . . . . 4,400 296
America Online, Inc. * . . . . . . . . 79,400 5,990
Autodesk, Inc. . . . . . . . . . . . . 2,400 81
BMC Software, Inc. * . . . . . . . . . 8,500 679
Cabletron Systems, Inc. * . . . . . . 6,700 174
Ceridian Corp. * . . . . . . . . . . . 4,900 106
Citrix Systems, Inc. * . . . . . . . . 3,200 394
Computer Associates International, Inc. 18,925 1,324
Computer Sciences Corp. * . . . . . . 6,000 568
Compuware Corp. * . . . . . . . . . . 12,700 473
Electronic Data Systems Corp. . . . . 16,900 1,131
EMC Corp. * . . . . . . . . . . . . . 36,206 3,955
First Data Corp. . . . . . . . . . . . 14,700 725
IMS Health, Inc. . . . . . . . . . . . 10,700 291
Microsoft Corp. . . . . . . . . . . . 183,000 21,365
Novell, Inc. * . . . . . . . . . . . . 11,500 459
Oracle Corp. * . . . . . . . . . . . . 50,525 5,662
Parametric Technology Co. * . . . . . 9,300 252
Peoplesoft, Inc. . . . . . . . . . . . 8,400 179
Seagate Technology, Inc. * . . . . . . 7,500 349
Shared Medical Systems Corp. . . . . . 800 41
Silicon Graphics, Inc. * . . . . . . . 6,100 60
Sun Microsystems, Inc. * . . . . . . . 55,500 4,298
Unisys Corp. * . . . . . . . . . . . . 11,000 351
Yahoo!, Inc. * . . . . . . . . . . . . 9,300 4,024
--------
53,227
Construction - 0.0%
Armstrong World Industries, Inc. . . . 1,300 44
Foster Wheeler Corp. . . . . . . . . . 600 5
Vulcan Materials Co. . . . . . . . . . 3,500 140
--------
189
Consumer - Miscellaneous - 0.7%
American Greetings Corp. - Cl. A . . . 1,900 45
Avery Dennison Corp. . . . . . . . . . 4,100 299
Black & Decker Corp. . . . . . . . . . 2,900 152
Briggs & Stratton Corp. . . . . . . . 800 43
Clorox Co. . . . . . . . . . . . . . . 8,500 428
Fortune Brands, Inc. . . . . . . . . . 5,800 192
Jostens, Inc. . . . . . . . . . . . . 1,200 29
Newell Rubbermaid, Inc. . . . . . . . 10,116 293
Parker-Hannifin Corp. . . . . . . . . 3,750 192
Service Corp. International . . . . . 8,600 60
Sherwin-Williams Co. . . . . . . . . . 6,300 132
Snap-On, Inc. . . . . . . . . . . . . 2,000 53
Stanley Works . . . . . . . . . . . . 2,900 87
Tupperware Corp. . . . . . . . . . . . 1,800 31
Unilever NV - NY Shares . . . . . . . 20,082 1,093
--------
3,129
Containers - 0.1%
Bemis Co., Inc. . . . . . . . . . . . 1,700 59
Crown Cork & Seal Co., Inc. . . . . . 3,900 87
Owens-Illinois, Inc. * . . . . . . . . 5,800 146
Pactiv Corp. * . . . . . . . . . . . . 5,100 54
Sealed Air Corp. * . . . . . . . . . . 2,789 145
--------
491
Cosmetics and Personal Care Products - 1.9%
Alberto-Culver Co. - Cl. B . . . . . . 2,200 57
Avon Products, Inc. . . . . . . . . . 8,200 271
Colgate-Palmolive Co. . . . . . . . . 20,500 1,332
Gillette Co. . . . . . . . . . . . . . 37,900 1,561
International Flavors & Fragrances,
Inc.. . . . . . . . . . . . . . . . . 3,700 140
Procter & Gamble Co. . . . . . . . . . 46,700 5,116
--------
8,477
Diversified Operations - 6.0%
Cooper Industries, Inc. . . . . . . . 3,300 133
Corning, Inc. . . . . . . . . . . . . 8,600 1,109
Costco Wholesale Corp. * . . . . . . . 7,800 712
Crane Co. . . . . . . . . . . . . . . 1,750 35
Danaher Corp. . . . . . . . . . . . . 5,200 251
Eastern Enterprises . . . . . . . . . 1,100 63
Eaton Corp. . . . . . . . . . . . . . 2,800 203
El Paso Energy Corp. . . . . . . . . . 8,400 326
General Electric Co. . . . . . . . . . 116,400 18,013
Illinois Tool Works, Inc. . . . . . . 10,700 723
Minnesota Mining & Manufacturing Co. . 14,200 1,390
National Service Industries, Inc. . . 1,300 38
Pall Corp. . . . . . . . . . . . . . . 4,900 106
PPG Industries, Inc. . . . . . . . . . 6,200 388
Seagram Co., Ltd. . . . . . . . . . . 15,300 687
Textron, Inc. . . . . . . . . . . . . 5,400 414
Tyco International, Ltd. . . . . . . . 59,652 2,319
--------
26,910
146
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Electric Power - 1.5%
AES Corp. * . . . . . . . . . . . . . 7,300 $ 546
Ameren Corp. . . . . . . . . . . . . . 4,600 151
American Electric Power Co. . . . . . 7,100 228
Carolina Power & Light Co. . . . . . . 6,000 182
Central & South West Corp. . . . . . . 6,900 138
Cinergy Corp. . . . . . . . . . . . . 6,100 147
CMS Energy Corp. . . . . . . . . . . . 4,200 131
Consolidated Edison, Inc. . . . . . . 8,100 279
Constellation Energy Group . . . . . . 5,200 151
Dominion Resources, Inc. . . . . . . . 6,900 271
DTE Energy Co. . . . . . . . . . . . . 4,900 154
Duke Energy Co. . . . . . . . . . . . 12,944 649
Edison International . . . . . . . . . 12,500 327
Entergy Corp. . . . . . . . . . . . . 8,300 214
Firstenergy Corp. . . . . . . . . . . 8,700 197
Florida Progress Corp. . . . . . . . . 3,300 140
FPL Group, Inc. . . . . . . . . . . . 6,100 261
GPU, Inc. . . . . . . . . . . . . . . 4,300 129
New Century Energies, Inc. . . . . . . 4,400 134
Niagara Mohawk Holdings, Inc. . . . . 6,100 85
Northern States Power Co. . . . . . . 6,000 117
Peco Energy Co. . . . . . . . . . . . 6,400 222
PG & E Corp. . . . . . . . . . . . . . 13,400 275
Pinnacle West Capital Corp. . . . . . 2,800 85
PP & L Resources, Inc. . . . . . . . . 5,500 126
Public Services Enterprise Group, Inc. 7,400 257
Reliant Energy, Inc. . . . . . . . . . 9,924 227
Southern Co. . . . . . . . . . . . . . 24,300 571
Texas Utilities Co. . . . . . . . . . 9,412 335
--------
6,729
Electrical Equipment - 0.4%
Best Buy Co., Inc. . . . . . . . . . . 7,400 371
Emerson Electric Co. . . . . . . . . . 15,300 878
Molex, Inc. . . . . . . . . . . . . . 5,300 300
Unicom Corp. . . . . . . . . . . . . . 7,900 265
--------
1,814
Electronic Products and Services - 5.8%
Adaptec, Inc. * . . . . . . . . . . . 3,400 170
Advanced Micro Devices, Inc. * . . . . 5,300 153
Analog Devices, Inc. * . . . . . . . . 6,200 577
Applied Materials, Inc. * . . . . . . 13,500 1,710
Ball Corp. . . . . . . . . . . . . . . 800 32
Cisco Systems, Inc. * . . . . . . . . 116,050 12,432
KLA-Tencor Corp. * . . . . . . . . . . 3,200 356
LSI Logic Corp. * . . . . . . . . . . 5,400 365
Micron Technology, Inc. * . . . . . . 9,400 731
Millipore Corp. . . . . . . . . . . . 1,900 73
Motorola, Inc. . . . . . . . . . . . . 21,700 3,195
National Semiconductor Corp. * . . . . 5,800 248
PE Corp-BE Biosystems Group . . . . . 3,700 445
PerkinElmer, Inc. . . . . . . . . . . 1,600 67
Pitney Bowes, Inc. . . . . . . . . . . 9,100 440
Polaroid Corp. . . . . . . . . . . . . 1,400 26
Rockwell International Corp. * . . . . 6,900 330
Solectron Corp. * . . . . . . . . . . 10,300 980
Tektronix, Inc. . . . . . . . . . . . 1,500 58
Teradyne, Inc. * . . . . . . . . . . . 6,200 409
Texas Instruments, Inc. . . . . . . . 28,500 2,761
Thomas & Betts Corp. . . . . . . . . . 2,000 64
Xilinx, Inc. * . . . . . . . . . . . . 11,200 509
--------
26,131
Engineering and Construction - 0.0%
Fluor Corp. . . . . . . . . . . . . . 2,400 110
Financial Services - 2.6%
American Express Co. . . . . . . . . . 15,900 2,643
Associates First Capital Corp. -
Cl. A * . . . . . . . . . . . . . . . 25,706 705
Capital One Financial Corp. . . . . . 7,200 347
Citigroup, Inc. . . . . . . . . . . . 119,728 6,653
Mellon Financial Corp. . . . . . . . . 18,200 620
Paychex, Inc. . . . . . . . . . . . . 8,800 352
Providian Financial Corp. * . . . . . 5,050 460
--------
11,780
Food, Beverage and Tobacco - 3.6%
Adolph Coors Co. - Cl. B . . . . . . . 1,400 74
Anheuser-Busch Cos., Inc. . . . . . . 16,400 1,162
Archer-Daniels-Midland Co. . . . . . . 22,273 271
Bestfoods . . . . . . . . . . . . . . 9,900 520
Brown-Forman Corp. - Cl. B . . . . . . 2,400 137
Campbell Soup Co. . . . . . . . . . . 15,400 596
Coca-Cola Co. . . . . . . . . . . . . 87,700 5,109
Coca-Cola Enterprises, Inc. . . . . . 14,600 294
ConAgra, Inc. . . . . . . . . . . . . 17,500 395
General Mills, Inc. . . . . . . . . . 11,000 393
H.J. Heinz Co. . . . . . . . . . . . . 12,700 506
Hershey Foods Corp. . . . . . . . . . 5,000 238
Kellogg Co. . . . . . . . . . . . . . 14,700 453
Nabisco Group Holdings Corp. . . . . . 10,400 111
PepsiCo, Inc. . . . . . . . . . . . . 51,300 1,808
Philip Morris Cos., Inc. . . . . . . . 83,600 1,938
Quaker Oats Co. . . . . . . . . . . . 4,800 315
Ralston-Ralston Purina Group . . . . . 11,700 326
Sara Lee Corp. . . . . . . . . . . . . 31,900 704
SUPERVALU, Inc. . . . . . . . . . . . 4,900 98
Sysco Corp. . . . . . . . . . . . . . 11,500 455
UST, Inc. . . . . . . . . . . . . . . 6,000 151
Wm. Wrigley Jr. Co. . . . . . . . . . 4,200 348
--------
16,402
Health Care Products - 8.4%
Abbott Laboratories . . . . . . . . . 54,800 1,990
Allergan, Inc. . . . . . . . . . . . . 4,400 219
ALZA Corp. * . . . . . . . . . . . . . 3,500 121
American Home Products Corp. * . . . . 46,600 1,838
Amgen, Inc. * . . . . . . . . . . . . 36,400 2,186
Bausch & Lomb, Inc. . . . . . . . . . 1,900 130
147
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Baxter International, Inc. . . . . . . 10,300 $ 647
Becton, Dickinson & Co. . . . . . . . 8,600 230
Biomet, Inc. . . . . . . . . . . . . . 4,000 160
Boston Scientific Corp. * . . . . . . 14,900 326
Bristol-Myers Squibb Co. . . . . . . . 70,500 4,525
C.R. Bard, Inc. . . . . . . . . . . . 1,700 90
Cardinal Health, Inc. . . . . . . . . 10,200 488
Eli Lilly & Co. . . . . . . . . . . . 38,800 2,580
Guidant Corp. * . . . . . . . . . . . 10,800 508
Johnson & Johnson . . . . . . . . . . 49,400 4,600
Mallinckrodt, Inc. . . . . . . . . . . 2,100 67
Medtronic, Inc. . . . . . . . . . . . 42,100 1,534
Merck & Co., Inc. . . . . . . . . . . 83,000 5,566
Pfizer, Inc. . . . . . . . . . . . . . 137,600 4,464
Pharmacia & Upjohn, Inc. . . . . . . . 18,500 833
Schering-Plough Corp. . . . . . . . . 52,300 2,206
St. Jude Medical, Inc. * . . . . . . . 2,500 77
Warner-Lambert Co. . . . . . . . . . . 30,600 2,507
Watson Pharmaceuticals, Inc. * . . . . 3,200 115
--------
38,007
Health Care Services - 0.4%
Columbia/HCA Healthcare Corp. . . . . 20,150 591
HEALTHSOUTH Corp. * . . . . . . . . . 13,500 72
Humana, Inc. * . . . . . . . . . . . . 5,700 47
Manor Care, Inc. * . . . . . . . . . . 3,400 54
McKesson HBOC, Inc. . . . . . . . . . 9,433 213
Tenet Healthcare Corp. * . . . . . . . 10,500 247
United Healthcare Corp. . . . . . . . 6,200 329
Wellpoint Health Networks, Inc. * . . 2,300 152
--------
1,705
Household Appliances / Furnishings - 0.1%
Leggett & Platt, Inc. . . . . . . . . 6,600 142
Maytag Corp. . . . . . . . . . . . . . 2,800 134
Springs Industries, Inc. - Cl. A . . . 300 12
Whirlpool Corp. . . . . . . . . . . . 2,800 182
--------
470
Housing - 0.1%
Centex Corp. . . . . . . . . . . . . . 1,700 42
Fleetwood Enterprises, Inc. . . . . . 700 14
Kaufman & Broad Home Corp. . . . . . . 1,300 32
Masco Corp. . . . . . . . . . . . . . 16,300 414
Owens Corning . . . . . . . . . . . . 1,700 33
Pulte Corp. . . . . . . . . . . . . . 900 20
--------
555
Insurance - 2.9%
Aetna, Inc. . . . . . . . . . . . . . 5,100 285
AFLAC, Inc. . . . . . . . . . . . . . 9,600 453
Allstate Corp. . . . . . . . . . . . . 28,200 677
American General Corp. . . . . . . . . 8,821 669
American International Group, Inc. . . 54,986 5,945
Aon Corp. . . . . . . . . . . . . . . 9,400 376
Chubb Corp. . . . . . . . . . . . . . 6,300 355
Cigna Corp. . . . . . . . . . . . . . 6,700 540
Cincinnati Financial Corp. . . . . . . 6,100 190
Conseco, Inc. . . . . . . . . . . . . 11,891 212
Hartford Financial Services Group, Inc. 8,100 384
Jefferson-Pilot Corp. . . . . . . . . 3,850 263
Lincoln National Corp. . . . . . . . . 6,800 272
Loews Corp. . . . . . . . . . . . . . 3,900 237
Marsh & McLennan Cos., Inc. . . . . . 9,600 918
MBIA, Inc. . . . . . . . . . . . . . . 3,300 174
MGIC Investment Corp. . . . . . . . . 3,800 229
Progressive Corp. . . . . . . . . . . 2,700 197
Safeco Corp. . . . . . . . . . . . . . 4,300 107
St. Paul Cos., Inc. . . . . . . . . . 7,714 260
Torchmark, Inc. . . . . . . . . . . . 4,200 122
UnumProvident Corp. . . . . . . . . . 8,820 283
--------
13,148
Leisure and Recreation - 0.6%
Brunswick Corp. . . . . . . . . . . . 3,100 69
Carnival Corp. . . . . . . . . . . . . 21,600 1,033
Eastman Kodak Co. . . . . . . . . . . 11,200 742
Harrah's Entertainment, Inc. * . . . . 4,200 111
Hasbro, Inc. . . . . . . . . . . . . . 6,525 124
Hilton Hotels Corp. . . . . . . . . . 14,000 135
Marriott International, Inc. - Cl. A . 8,400 265
Mattel, Inc. . . . . . . . . . . . . . 15,400 202
Mirage Resorts, Inc. * . . . . . . . . 7,300 112
--------
2,793
Machinery - 0.4%
Caterpillar, Inc. . . . . . . . . . . 12,600 593
Deere & Co. . . . . . . . . . . . . . 8,400 364
Dover Corp. . . . . . . . . . . . . . 7,000 318
FMC Corp. * . . . . . . . . . . . . . 1,000 57
Ingersoll-Rand Co. . . . . . . . . . . 6,000 331
McDermott International, Inc. . . . . 2,100 19
NACCO Industries, Inc. - Cl. A . . . . 200 11
Thermo Electron Corp. * . . . . . . . 5,100 77
W.W. Grainger, Inc. . . . . . . . . . 3,100 148
--------
1,918
Media - Publishing - 0.5%
Dow Jones & Co., Inc. . . . . . . . . 3,200 218
Gannett Co., Inc. . . . . . . . . . . 9,900 807
Knight-Ridder, Inc. . . . . . . . . . 3,100 184
Meredith Corp. . . . . . . . . . . . . 1,700 71
New York Times Co. - Cl. A . . . . . . 6,300 310
Times Mirror Co. - Cl. A . . . . . . . 2,100 141
Tribune Co. . . . . . . . . . . . . . 8,500 468
--------
2,199
Media - TV / Radio - 2.3%
CBS Corp. * . . . . . . . . . . . . . 26,782 1,712
Comcast Corp. - Cl. A . . . . . . . . 26,900 1,360
McGraw-Hill Cos., Inc. . . . . . . . . 7,000 431
148
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV / Radio - Continued
The Walt Disney Co. . . . . . . . . . 73,500 $ 2,150
Time Warner, Inc. . . . . . . . . . . 45,400 3,289
Viacom, Inc. - Cl. B * . . . . . . . . 24,500 1,481
--------
10,423
Metal Product and Fabrication - 0.1%
Milacron, Inc. . . . . . . . . . . . . 700 11
Reynolds Metals Co. . . . . . . . . . 2,400 184
Timken Co. . . . . . . . . . . . . . . 1,600 33
Worthington Industries, Inc. . . . . . 3,000 49
--------
277
Metals and Mining - 0.4%
Alcan Aluminum, Ltd. . . . . . . . . . 7,800 321
Alcoa, Inc. . . . . . . . . . . . . . 12,900 1,071
Inco, Ltd. . . . . . . . . . . . . . . 6,200 146
Phelps Dodge Corp. . . . . . . . . . . 2,796 187
--------
1,725
Natural Gas Distribution - 0.5%
Columbia Energy Group, Inc. . . . . . 2,900 183
Consolidated Natural Gas Co. . . . . . 3,300 214
Enron Corp. . . . . . . . . . . . . . 25,200 1,118
NICOR, Inc. . . . . . . . . . . . . . 1,600 52
Peoples Energy Corp. . . . . . . . . . 1,300 44
Sempra Energy . . . . . . . . . . . . 7,955 138
Williams Cos., Inc. . . . . . . . . . 15,500 474
--------
2,223
Oil - 1.4%
Atlantic Richfield Co. (ARCO) . . . . 11,300 978
Conoco, Inc. - Cl. B . . . . . . . . . 22,245 553
Royal Dutch Petroleum Co. - NY Shares 76,200 4,605
Tosco Corp. . . . . . . . . . . . . . 5,000 136
--------
6,272
Oil - Equipment and Services - 2.6%
Baker Hughes, Inc. . . . . . . . . . . 12,000 253
Exxon Mobil Corp. . . . . . . . . . . 122,555 9,873
Halliburton Co. . . . . . . . . . . . 15,700 632
ONEOK, Inc. . . . . . . . . . . . . . 1,200 30
Schlumberger, Ltd. . . . . . . . . . . 19,300 1,086
--------
11,874
Oil and Natural Gas Exploration and Production - 1.4%
Amerada Hess Corp. . . . . . . . . . . 3,400 193
Anadarko Petroleum Corp. . . . . . . . 4,500 154
Apache Corp. . . . . . . . . . . . . . 4,300 159
Ashland, Inc. . . . . . . . . . . . . 2,300 76
Burlington Resources, Inc. . . . . . . 7,610 252
Chevron Corp. . . . . . . . . . . . . 23,400 2,027
Coastal Corp. . . . . . . . . . . . . 7,800 276
Kerr-McGee Corp. . . . . . . . . . . . 2,970 184
Occidental Petroleum Corp. . . . . . . 12,500 270
Phillips Petroleum Co. . . . . . . . . 9,000 423
Rowan Cos., Inc. * . . . . . . . . . . 3,400 74
Sunoco, Inc. . . . . . . . . . . . . . 3,100 73
Texaco, Inc. . . . . . . . . . . . . . 19,500 1,059
Transocean Sedco Forex, Inc. . . . . . 7,336 247
Union Pacific Resources Group, Inc. . 9,808 125
Unocal Corp. . . . . . . . . . . . . . 8,800 295
USX-Marathon Group . . . . . . . . . . 11,300 279
--------
6,166
Paper and Forest Products - 0.9%
Boise Cascade Corp. . . . . . . . . . 1,900 77
Champion International Corp. . . . . . 3,200 198
Fort James Corp. . . . . . . . . . . . 7,200 197
Georgia-Pacific Corp. . . . . . . . . 5,900 300
International Paper Co. . . . . . . . 14,621 825
Kimberly-Clark Corp. . . . . . . . . . 19,200 1,253
Louisiana-Pacific Corp. . . . . . . . 3,100 44
Mead Corp. . . . . . . . . . . . . . . 3,900 170
Potlatch Corp. . . . . . . . . . . . . 900 40
Temple-Inland, Inc. . . . . . . . . . 1,800 119
Westvaco Corp. . . . . . . . . . . . . 3,900 127
Weyerhaeuser Co. . . . . . . . . . . . 8,400 603
Willamette Industries, Inc. . . . . . 4,100 190
--------
4,143
Personal and Commercial Lending - 0.4%
Countrywide Credit Industries, Inc. . 3,600 91
Household International, Inc. . . . . 16,966 632
MBNA Corp. . . . . . . . . . . . . . . 28,375 773
SLM Holding Corp. . . . . . . . . . . 5,300 224
--------
1,720
Pollution Control - 0.1%
Allied Waste Industries, Inc. * . . . 5,800 51
Waste Management, Inc. . . . . . . . . 22,457 386
--------
437
Precious Metals/Gems/Stones - 0.2%
Barrick Gold Corp. . . . . . . . . . . 14,200 251
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B . . . . . . . . . . . . . . . . 5,100 108
Homestake Mining Co. . . . . . . . . . 8,000 63
Newmont Mining Corp. . . . . . . . . . 5,801 142
Placer Dome, Inc. . . . . . . . . . . 12,400 133
--------
697
Retail - Department Stores - 5.4%
Bed Bath & Beyond, Inc. * . . . . . . 4,600 160
Circuit City Stores, Inc. . . . . . . 7,300 329
Consolidated Stores Corp. * . . . . . 3,300 54
Dayton Hudson Corp. . . . . . . . . . 15,600 1,145
Dillard's, Inc. - Cl. A . . . . . . . 3,600 73
Dollar General Corp. . . . . . . . . . 9,237 210
Federated Department Stores, Inc. * . 7,500 379
Gap, Inc. . . . . . . . . . . . . . . 30,175 1,388
Harcourt General, Inc. . . . . . . . . 2,500 101
Home Depot, Inc. . . . . . . . . . . . 81,750 5,605
149
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Retail - Department Stores - Continued
J.C. Penney Co., Inc. . . . . . . . . 8,600 $ 171
Kmart Corp. * . . . . . . . . . . . . 18,300 184
Kohl's Corp. . . . . . . . . . . . . . 5,900 426
Limited, Inc. . . . . . . . . . . . . 7,726 335
Lowe's Cos., Inc. . . . . . . . . . . 13,500 806
May Department Stores Co. . . . . . . 11,750 379
Nordstrom, Inc. . . . . . . . . . . . 5,400 141
Office Depot, Inc. . . . . . . . . . . 10,700 117
Sears, Roebuck & Co. . . . . . . . . . 13,800 420
Staples, Inc. * . . . . . . . . . . . 16,950 352
Tandy Corp. . . . . . . . . . . . . . 7,100 349
TJX Cos., Inc. . . . . . . . . . . . . 10,600 217
Toys "R" Us, Inc. * . . . . . . . . . 8,600 123
Wal-Mart Stores, Inc. . . . . . . . . 157,900 10,915
--------
24,379
Retail - Drug Stores - 0.4%
CVS Corp. . . . . . . . . . . . . . . 13,900 555
Longs Drug Stores Corp. . . . . . . . 900 23
Rite Aid Corp. . . . . . . . . . . . . 8,500 95
Walgreen Co. . . . . . . . . . . . . . 35,300 1,033
--------
1,706
Retail - Food - 0.9%
Albertson's, Inc. . . . . . . . . . . 14,977 483
Darden Restaurants, Inc. . . . . . . . 4,700 85
McDonald's Corp. . . . . . . . . . . . 48,300 1,947
Safeway, Inc. * . . . . . . . . . . . 18,100 644
The Great Atlantic & Pacific Tea Co.,
Inc.. . . . . . . . . . . . . . . . . 1,000 28
The Kroger Co. * . . . . . . . . . . . 30,100 568
Tricon Global Restaurants, Inc. * . . 5,350 207
Wendy's International, Inc. . . . . . 3,700 76
Winn-Dixie Stores, Inc. . . . . . . . 5,700 136
--------
4,174
Shoe and Apparel Manufacturing - 0.2%
Liz Claiborne, Inc. . . . . . . . . . 2,000 75
Nike, Inc. - Cl. B . . . . . . . . . . 10,000 496
Reebok International, Ltd. . . . . . . 1,900 16
Russell Corp. . . . . . . . . . . . . 800 13
V.F. Corp. . . . . . . . . . . . . . . 4,400 132
--------
732
Steel - 0.1%
Allegheny Technologies, Inc. . . . . . 2,850 64
Bethlehem Steel Corp. * . . . . . . . 3,200 27
Nucor Corp. . . . . . . . . . . . . . 3,000 164
USX-US Steel Group, Inc. . . . . . . . 3,400 112
--------
367
Telecommunication Equipment - 4.3%
ADC Telecommunications, Inc. * . . . . 5,500 399
Andrew Corp. * . . . . . . . . . . . . 2,850 54
General Instrument Corp. * . . . . . . 6,200 527
Lucent Technologies, Inc. . . . . . . 111,225 8,321
Nortel Networks Corp. . . . . . . . . 47,500 4,798
QUALCOMM, Inc. * . . . . . . . . . . . 23,600 4,157
Scientific-Atlanta, Inc. . . . . . . . 2,900 161
Tellabs, Inc. * . . . . . . . . . . . 14,200 911
--------
19,328
Telecommunication Services - 1.5%
Clear Channel Communications, Inc. * . 11,900 1,062
Global Crossing, Ltd. . . . . . . . . 27,090 1,355
MediaOne Group, Inc. . . . . . . . . . 21,600 1,659
Nextel Communications, Inc. -
Cl. A * . . . . . . . . . . . . . . . 13,000 1,341
Sprint PCS (PCS Group) * . . . . . . . 15,250 1,563
--------
6,980
Telephone - 6.8%
Alltel Corp. . . . . . . . . . . . . . 11,100 918
AT&T Corp. . . . . . . . . . . . . . . 113,506 5,760
Bell Atlantic Corp. . . . . . . . . . 55,236 3,401
BellSouth Corp. . . . . . . . . . . . 67,000 3,137
CenturyTel, Inc. . . . . . . . . . . . 5,200 246
GTE Corp. . . . . . . . . . . . . . . 34,300 2,420
MCI WorldCom, Inc. . . . . . . . . . . 100,778 5,348
SBC Communications, Inc. . . . . . . . 121,197 5,908
Sprint Corp. . . . . . . . . . . . . . 30,800 2,073
U.S. West, Inc. . . . . . . . . . . . 17,797 1,281
--------
30,492
Transportation Services - 0.7%
AMR Corp. * . . . . . . . . . . . . . 5,100 342
Burlington Northern Santa Fe . . . . . 15,900 385
CSX Corp. . . . . . . . . . . . . . . 7,900 248
Delta Air Lines, Inc. . . . . . . . . 4,500 224
FDX Corp. . . . . . . . . . . . . . . 10,600 434
Kansas City Southern Industries, Inc. 3,800 284
Norfolk Southern Corp. . . . . . . . . 13,800 283
Ryder System, Inc. . . . . . . . . . . 2,000 49
Southwest Airlines Co. . . . . . . . . 17,200 278
U.S. Airways Group, Inc. * . . . . . . 2,600 83
Union Pacific Corp. . . . . . . . . . 9,000 393
--------
3,003
U.S. Government Agencies - 0.8%
Federal Home Loan Mortgage Corp. . . . 24,400 1,148
Federal National Mortgage Assoc. . . . 36,500 2,279
--------
3,427
--------
TOTAL COMMON STOCK- 101.0% 455,746
150
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
U.S. Governmental - 0.2%
U.S. Treasury Bills
5.11% due 03/16/00 # . . . . . . . . . $ 25 $ 25
5.16% due 03/16/00 # . . . . . . . . . 800 791
----------- --------
TOTAL SHORT-TERM INVESTMENTS- 0.2% 816
----------- --------
TOTAL INVESTMENTS- 101.2% 456,562
Payables, less cash and receivables- (1.2)% (5,266)
----------- --------
NET ASSETS- 100.0% $451,296
=========== ========
* Non-income producing security.
# Securities, or a portion thereof, with an aggregate market value of $816 have
been segregated to collateralize financial futures contracts.
See notes to financial statements.
151
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.8%
K & F Industries, Inc. - Sr. Sub. Notes
9.25% due 10/15/07 ......................... $ 175 $ 166
Auto and Truck Parts - 4.9%
Accuride Corp. - Sr. Sub. Notes
9.25% due 02/01/08 ......................... 125 115
Delco Remy International, Inc. - Sr. Notes
8.625% due 12/15/07 ........................ 50 48
10.625% due 08/01/06 ....................... 190 197
Dura Operating Corp.
9.0% due 05/01/09 .......................... 135 127
Federal-Mogul Corp. - Sr. Notes
8.8% due 04/15/07 .......................... 100 97
Hayes Lemmerz International, Inc.
9.125% due 07/15/07 ........................ 100 98
LDM Technologies, Inc.
10.75% due 01/15/07 ........................ 135 123
Lear Corp. - Sub. Notes
9.5% due 07/15/06 .......................... 100 101
Numatics, Inc. - Ser. B
9.625% due 04/01/08 ........................ 100 75
------
981
Banks - 0.6%
Western Financial Bank - Sub.
8.875% due 08/01/07 ........................ 125 115
Business Services - 0.3%
Express Scripts, Inc. - Sr. Notes
9.625% due 06/15/09 ........................ 50 51
Chemicals - 5.5%
Acetex Corp. - Sr. Notes
9.75% due 10/01/03 ......................... 125 114
Georgia Gulf Corp. - Sr. Sub. Notes 144A (a)
10.375% due 11/01/07 ....................... 125 130
Lyondell Chemical Co. - Debs.
9.8% due 02/01/20 .......................... 110 110
9.875% due 05/01/07 ........................ 195 199
PCI Chemicals Canada, Inc.
9.25% due 10/15/07 ......................... 90 69
Sovereign Speciality Chemicals
9.5% due 08/01/07 .......................... 180 181
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06 ....................... 150 131
ZSC Specialty Chemical plc - Sr. Notes 144A
(a)
11.0% due 07/01/09 ......................... 150 155
------
1,089
Coal - 1.5%
P&L Coal Holdings Corp.
9.625% due 05/15/08 ........................ 300 295
Commercial Services - 1.7%
Iron Mountain, Inc.
8.75% due 09/30/09 ......................... 150 143
Pierce Leahy Corp. - Sr. Sub. Notes
9.125% due 07/15/07 ........................ 75 74
Sullivan Graphics, Inc. - Sr. Sub. Notes
12.75% due 08/01/05 ........................ 125 129
------
346
Computer Software and Services - 4.0%
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07 ........................ 150 157
Exodus Communications, Inc. - Sr. Notes
11.25% due 07/01/08 ........................ 150 156
PSINet, Inc. - Sr. Notes
11.5% due 11/01/08 ......................... 75 78
10.0% due 02/15/05 ......................... 200 198
Verio, Inc. - Sr. Notes
10.375% due 04/01/05 ....................... 150 151
11.25% due 12/01/08 ........................ 50 53
------
793
Construction - 0.5%
Nortek, Inc. - Sr. Notes
9.125% due 09/01/07 ........................ 100 97
Consumer - Miscellaneous - 2.0%
Lin Holdings Corp. - Sr. Disc. Notes
1.0% due 03/01/08 .......................... 475 321
Royster-Clark, Inc. - 1st Mtge. 144A (a)
10.25% due 04/01/09 ........................ 90 82
------
403
Containers - 1.0%
Gaylord Container Corp. - Sr. Notes Ser. B
9.375% due 06/15/07 ........................ 125 116
Packaging Corp. of America
9.625% due 04/01/09 ........................ 75 77
------
193
Diversified Operations - 2.1%
Fisher Scientific International, Inc. - Sr.
Sub. Notes
9.0% due 02/01/08 .......................... 125 120
Prestolite Electric, Inc.
9.625% due 02/01/08 ........................ 75 58
SCG Holding Corp. & Semiconductor Components
Industries LLC - Sr. Sub. Notes 144A (a)
12.0% due 08/01/09 ......................... 160 170
Werner Holdings Co., Inc.
10.0% due 11/15/07 ......................... 35 34
Westinghouse Air Brake Co. - Sr. Notes
9.375% due 06/15/05 ........................ 45 45
------
427
Electrical Equipment - 0.5%
Wesco Distribution, Inc. - Ser. B
9.125% due 06/01/08 ........................ 100 94
152
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Electronic Products and Services - 0.6%
Advanced Micro Devices - Sr. Notes
11.0% due 08/01/03 .......................... $ 130 $ 130
Financial Services - 2.0%
AMSC Acquisition Co., Inc. - Ser. B
12.25% due 04/01/08 ......................... 50 39
Olympic Financial, Ltd. - Sr. Notes
11.5% due 03/15/07 .......................... 125 130
RBF Finance Co.
11.375% due 03/15/09 ........................ 120 129
Tembec Finance Corp. - Sr. Notes
9.875% due 09/30/05 ......................... 95 99
-----
397
Food, Beverage and Tobacco - 3.1%
Aurora Foods, Inc. - Sr. Sub. Notes
8.75% due 07/01/08 .......................... 75 71
9.875% due 02/15/07 ......................... 50 51
B&G Foods, Inc.
9.625% due 08/01/07 ......................... 125 113
Chiquita Brands International, Inc. - Sr.
Notes
10.0% due 06/15/09 .......................... 65 49
Del Monte Foods Co. - Sr. Disc. Notes Ser. B
12.5% due 12/15/07 .......................... 137 104
Nash-Finch Co. - Ser. B
8.5% due 05/01/08 ........................... 100 83
Vlasic Foods International, Inc. - Sr. Sub
Notes
10.25% due 07/01/09 ......................... 150 143
-----
614
Foreign - 0.4%
Satelites Mexicanos SA - Sr. Notes
10.125% due 11/01/04 ........................ 125 85
Health Care Products - 1.7%
ALARIS Medical Systems, Inc.
9.75% due 12/01/06 .......................... 75 64
ALARIS Medical, Inc. - Sr. Disc. Notes
11.125% due 08/01/08 ........................ 150 62
Beckman Coulter, Inc.
7.45% due 03/04/08 .......................... 50 46
MEDIQ, Inc.
11.0% due 06/01/08 .......................... 150 60
Owens & Minor, Inc.
10.875% due 06/01/06 ........................ 111 114
-----
346
Health Care Services - 2.9%
Beverly Enterprises, Inc.
9.0% due 02/15/06 ........................... 210 198
Lifepoint Hospitals Holdings, Inc.
10.75% due 05/15/09 ......................... 60 62
Tenet Healthcare Corp. - Sr. Sub Notes
8.125% due 12/01/08 ......................... 175 166
Triad Hospitals Holdings, Inc.
11.0% due 05/15/09 .......................... 150 155
-----
581
Housing - 2.4%
American Standard Cos., Inc.
7.625% due 02/15/10 ......................... 35 32
Engle Homes, Inc. - Ser. C
9.25% due 02/01/08 .......................... 90 81
Grove Worldwide Llc - Sr. Sub. Notes
9.25% due 05/01/08 .......................... 85 26
Investcorp
0.0% due 06/15/07 ........................... 200 150
Standard Pacific Corp. - Sr. Notes
8.5% due 06/15/07 ........................... 110 106
8.5% due 04/01/09 ........................... 100 92
-----
487
Leisure and Recreation - 4.9%
AMC Entertainment, Inc. - Sr. Sub. Notes
9.5% due 03/15/09 ........................... 75 66
9.5% due 02/01/11 ........................... 125 109
Aztar Corp. - Sr. Sub. Notes
8.875% due 05/15/07 ......................... 100 96
Bell Sports, Inc.
11.0% due 08/15/08 .......................... 150 148
Hollywood Casino Corp.
11.25% due 05/01/07 ......................... 150 155
Loews Cineplex Entertainment Corp. - Sr. Sub.
Notes
8.875% due 08/01/08 ......................... 100 88
Station Casinos, Inc. - Sr. Sub. Notes
8.875% due 12/01/08 ......................... 100 96
True Temper Sports, Inc. - Sr. Sub. Notes
10.875% due 12/01/08 ........................ 230 220
-----
978
Media - Publishing - 0.4%
American Media Operations, Inc. - Sr. Sub
Notes
10.25% due 05/01/09 ......................... 75 75
Media - TV / Radio - 9.6%
Allbritton Communications Co. - Sr. Sub.
Notes
9.75% due 11/30/07 .......................... 250 250
Cablevision SA - Bonds
13.75% due 05/01/09 ......................... 60 59
Century Communications Corp. - Sr. Disc.
Notes
0.0% due 01/15/08 ........................... 500 217
Charter Communications Holdings, LLC - Sr.
Notes
8.625% due 04/01/09 ......................... 300 277
Classic Cable, Inc.
9.875% due 08/01/08 ......................... 120 118
153
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Media - TV / Radio - Continued
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ................................ $ 350 $ 353
Emmis Communications Corp.
8.125% due 03/15/09 ................................ 55 53
Frontiervision Holding L.P. - Sr. Disc. Notes
11.875% due 09/15/07 ............................... 200 178
Granite Broadcassting Corp. - Sr. Sub. Notes
8.875% due 05/15/08 ................................ 175 167
Iridium LLC & Capital Corp.
11.25% due 07/15/05 ................................ 200 8
Multicanal SA
13.125% due 04/15/09 ............................... 180 177
Young Broadcasting, Inc.
8.75% due 06/15/07 ................................. 50 48
------
1,905
Metals and Mining - 1.0%
Johnstown America Industries, Inc. - Sr. Sub.
Notes
11.75% due 08/15/05 ................................ 150 153
Neenah Corp. - Sr. Sub. Notes
11.125% due 05/01/07 ............................... 10 9
11.125% due 05/01/07 ............................... 40 37
------
199
Natural Gas Distribution - 0.7%
Energy Corp. of America - Sr. Sub. Notes
9.5% due 05/15/07 .................................. 200 140
Oil - Equipment and Services - 1.0%
ICO, Inc. - Sr. Notes
10.375% due 06/01/07 ............................... 50 45
Key Energy Services, Inc.
14.0% due 01/15/09 ................................. 65 71
Tuboscope, Inc.
7.5% due 02/15/08 .................................. 100 85
------
201
Oil and Natural Gas Exploration and Production - 3.6%
Contour Energy Co.
14.0% due 04/15/03 ................................. 92 90
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06 ................................ 125 36
Petroleos Mexicanos
8.85% due 09/15/07 ................................. 175 167
Plains Resources, Inc. - Sr. Sub. Notes
10.25% due 03/15/06 ................................ 125 122
10.25% due 03/15/06 ................................ 100 98
Pride International, Inc. - Sr. Notes
9.375% due 05/01/07 ................................ 100 100
10.0% due 06/01/09 ................................. 100 103
------
716
Paper and Forest Products - 2.0%
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04 ................................. 100 85
12.0% due 07/01/04 ................................. 75 78
Grupo Industrial Durango, S.A. - Notes
12.625% due 08/01/03 ............................... 100 99
Repap New Brunswick, Inc.
9.0% due 06/01/04 .................................. 60 59
10.625% due 04/15/05 ............................... 75 70
Tembec Industries, Inc.
8.625% due 06/30/09 ................................ 15 15
------
406
Personal and Commercial Lending - 0.1%
Arcadia Financial, Ltd. - Sr. Notes
11.5% due 03/15/07 ................................. 15 16
Pollution Control - 0.7%
WMX Technologies, Inc. - Notes
7.0% due 10/15/06 .................................. 150 133
Real Estate Development - 0.6%
D.R. Horton, Inc.
8.0% due 02/01/09 .................................. 60 55
Del Webb Corp. - Sr. Sub. Debs.
10.25% due 02/15/10 ................................ 75 72
------
127
Retail - Department Stores - 0.4%
Mattress Discounters Co.
12.625% due 07/15/07 ............................... 75 73
Retail - Drug Stores - 1.6%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08 ................................. 325 318
Retail - Food - 1.6%
Disco S.A. - Notes
9.875% due 05/15/08 ................................ 75 65
Stater Bros. Holdings, Inc. - Senior Notes
10.75% due 08/15/06 ................................ 250 253
------
318
Shoe and Apparel Manufacturing - 0.7%
WestPoint Stevens, Inc. - Sr. Notes
7.875% due 06/15/08 ................................ 150 134
Steel - 2.0%
AK Steel Corp. - Sr. Notes
9.125% due 12/15/06 ................................ 100 101
Armco, Inc. - Sr. Notes
9.0% due 09/15/07 .................................. 75 76
Bayou Steel Corp.
9.5% due 05/15/08 .................................. 100 93
LTV Corp. - Sr. Notes 144A (a)
11.75% due 11/15/09 ................................ 130 137
------
407
Telecommunication Equipment - 2.5%
Covad Communications Group, Inc. - Sr. Notes
12.5% due 02/15/09 ................................. 50 52
154
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telecommunication Equipment - Continued
Crown Castle International Corp. - Sr. Disc.
Notes
10.625% due 11/15/07 ........................ $ 100 $ 76
Fairchild Semiconductor Corp. - Sr. Sub.
Notes
10.125% due 03/15/07 ........................ 250 252
10.375% due 10/01/07 ........................ 35 36
L-3 Communications Corp. - Sr. Sub. Notes
8.5% due 05/15/08 ........................... 35 33
Paging Network, Inc. - Sr. Sub. Notes
10.125% due 08/01/07 ........................ 150 47
-------
496
Telecommunication Services - 16.3%
Bresnan Communications Co. - Sr. Disc. Notes
9.25% due 02/01/09 .......................... 50 35
BTI Telecom Corp. - Sr. Notes
10.5% due 09/15/07 .......................... 100 92
Clearnet Communications, Inc. - Sr. Disc.
Notes
10.125% due 05/01/09 ........................ 150 90
Fonda Group, Inc. - Sr. Sub. Notes
9.5% due 03/01/07 ........................... 125 105
GCI, Inc. - Sr. Notes
9.75% due 08/01/07 .......................... 400 374
Global Crossing Holdings, Ltd. - Sr. Notes
144A (a)
9.125% due 11/15/06 ......................... 100 99
Globalstar LP/Capital Corp. - Global Star -
Sr. Notes
10.75% due 11/01/04 ......................... 125 83
GST Telecommunications, Inc. - Sr. Sub. Notes
12.75% due 11/15/07 ......................... 50 48
Hyperion Telecommunications, Inc. - Sr. Notes
12.25% due 09/01/04 ......................... 50 54
13.0% due 04/15/03 .......................... 140 126
Innova State of DE R.L. - Sr. Notes
12.875% due 04/01/07 ........................ 100 89
Insight Midwest LP & Insight Capital, Inc. -
Sr. Notes 144A (a)
9.75% due 10/01/09 .......................... 35 36
Intermedia Communications, Inc. - Sr. Notes
Ser. B
8.6% due 06/01/08 ........................... 50 46
Intermedia Communications, Inc. - Sr. Notes
8.875% due 11/01/07 ......................... 275 257
IXC Communications, Inc. - Sr. Sub Notes
9.0% due 04/15/08 ........................... 50 51
KMC Telecom Holdings, Inc. - Sr. Disc. Notes
12.5% due 02/15/08 .......................... 275 151
Level 3 Communications, Inc. - Sr. Notes
9.125% due 05/01/08 ......................... 30 28
McLeodUSA, Inc. - Senior Notes
8.375% due 03/15/08 ......................... 200 188
MGC Communications, Inc. - Sr. Notes Ser. B
13.0% due 10/01/04 .......................... 25 25
Nextel Communications, Inc. - Sr. Disc. Notes
9.75% due 10/31/07 .......................... 650 470
NTL Communications Corp. - Sr. Notes
12.375% due 10/01/08 ........................ 440 309
Price Communications Wireless, Inc.
9.125% due 12/15/06 ......................... 50 51
RCN Corp. - Sr. Disc. Notes
11.0% due 07/01/08 .......................... 175 114
RSL Communications plc
9.125% due 03/01/08 ......................... 100 88
Telecommunications Techniques Co.
9.75% due 05/15/08 .......................... 140 127
Time Warner Telecom Llc - Sr. Notes
9.75% due 07/15/08 .......................... 100 103
-------
3,239
Telephone - 3.6%
Alestra SA - Sr. Notes 144A (a)
12.125% due 05/15/06 ........................ 175 176
e.spire Communications, Inc. - Sr. Disc.
Notes
12.75% due 04/01/06 ......................... 100 48
ITC DeltaCom, Inc. - Sr. Notes
8.875% due 03/01/08 ......................... 25 24
9.75% due 11/15/08 .......................... 75 76
NEXTLINK Communications, Inc. - Sr. Disc.
Notes
9.45% due 04/15/08 .......................... 300 189
NEXTLINK Communications, Inc. - Sr. Notes
144A (a)
10.5% due 12/01/09 .......................... 75 76
Viatel, Inc. - Sr. Notes
11.25% due 04/15/08 ......................... 125 126
-------
715
Transportation Services - 0.8%
Dunlop Standard Aero Holdings - Sr. Notes
11.875% due 05/15/09 ........................ 150 155
-------
TOTAL PUBLICLY-TRADED BONDS- 92.6% 18,441
Shares
PREFERRED STOCK
Computer Software and Services - 0.6%
Concentric Network Corp. - PIK Ser. B ....... 112 111
Media - Publishing - 0.5%
Primedia, Inc. .............................. 1,250 108
-------
TOTAL PREFERRED STOCK- 1.1% 219
155
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
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 - 8.6%
Investment in joint trading account (Note B)
5.242% due 01/03/00 ........................ $ 1,714 1,714
-------- --------
TOTAL INVESTMENTS- 102.3% 20,375
Payables, less cash and receivables- (2.3)% (454)
-------- --------
NET ASSETS- 100.0% $ 19,921
======== ========
(a) Pursuant to Rule 144A under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1999, securities aggregated
$1,062 or 5.33% of net assets of the Portfolio.
See notes to financial statements.
156
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
<TABLE>
<CAPTION>
Par Market
Name of Issuer Value Value
(000's) (000's)
<S> <C> <C>
PUBLICLY-TRADED BONDS
Belgium - 2.9%
Kingdom of Belgium - Bonds (GOVF)
9.0% due 03/28/03 #. . . . . . . . . . . . $ 1,800 $ 2,042
Canada - 2.3%
Government of Canada - Bonds (GOVF)
7.0% due 12/01/06 #. . . . . . . . . . . . 2,300 1,657
France - 15.5%
Government of France (GOVF)
3.5% due 07/12/04 #. . . . . . . . . . . . 5,950 5,687
4.0% due 04/25/09 #. . . . . . . . . . . . 3,670 3,318
5.5% due 04/25/07 #. . . . . . . . . . . . 610 628
6.0% due 10/25/25 #. . . . . . . . . . . . 1,357 1,368
-------
11,001
Germany - 5.8%
Bundesobligation - Bonds (GOVF)
4.5% due 02/18/03 #. . . . . . . . . . . . 1,700 1,707
Bundesrepublic Deutschland - Bonds (GOVF)
6.75% due 04/22/03 # . . . . . . . . . . . 1,125 1,204
Federal Republic of Germany - Bonds (GOVF)
6.25% due 01/04/24 # . . . . . . . . . . . 833 870
Treuhandanstalt - Bonds (FORG)
7.5% due 09/09/04 #. . . . . . . . . . . . 281 314
-------
4,095
Italy - 2.0%
Republic of Italy (GOVF)
3.25% due 04/15/04 # . . . . . . . . . . . 1,500 1,409
Japan - 6.7%
Government of Japan - Bonds (GOVF)
1.9% due 03/20/09 #. . . . . . . . . . . . 384,700 3,812
3.0% due 09/20/05 #. . . . . . . . . . . . 88,000 950
-------
4,762
Netherlands - 9.5%
Government of Netherlands - Bonds (GOVF)
6.5% due 04/15/03 #. . . . . . . . . . . . 3,100 3,283
Repsol International Finance (FINL)
3.607% due 12/14/00 #. . . . . . . . . . . 3,400 3,424
-------
6,707
Spain - 3.1%
Government of Spain - Bonds (GOVF)
10.0% due 02/28/05 # . . . . . . . . . . . 1,790 2,197
Supra National - 3.3%
European Investment Bank - Bond (BANK)
5.875% due 05/12/09 # 1,500 1,372
International-American Development Bank -
Bonds (BANK)
1.9% due 07/08/09 #. . . . . . . . . . . . 100,000 998
-------
2,370
Sweden - 4.3%
Government of Sweden - Bonds (GOVF)
5.5% due 04/12/02. . . . . . . . . . . . . 26,000 3,084
United Kingdom - 5.1%
U.K. Treasury - Bonds (GOVF)
6.0% due 12/07/28 #. . . . . . . . . . . . 300 593
6.25% due 11/25/10 # . . . . . . . . . . . 700 1,209
7.25% due 12/07/07 # . . . . . . . . . . . 1,045 1,842
-------
3,644
United States - 35.7%
Chase Manhattan Corp. - Sub. Notes (BANK)
6.0% due 02/15/09 #. . . . . . . . . . . . 1,250 1,124
Cytec Industries, Inc. - Notes (CHEM)
6.846% due 05/11/05 #. . . . . . . . . . . 1,500 1,406
Federal Home Loan Mortgage Corp. (GOVA)
6.625% due 09/15/09 #. . . . . . . . . . . 1,400 1,360
Federal National Mortgage Assoc. (GOVA)
6.5% due 01/31/30 #. . . . . . . . . . . . 3,580 3,373
7.5% due 01/31/30 #. . . . . . . . . . . . 1,800 1,780
Government National Mortgage Assoc. (GOVA)
7.0% due 01/31/30 # 1,800 1,738
7.37% due 06/15/38 . . . . . . . . . . . . 42 41
Lucent Technologies, Inc. - Debs. (TELE)
6.45% due 03/15/29 . . . . . . . . . . . . 1,107 964
McKesson Corp. - Notes (HEAL)
6.4% due 03/01/08. . . . . . . . . . . . . 1,500 1,338
Standard Credit Card Master Trust (LEND)
8.25% due 01/07/07 # . . . . . . . . . . . 2,000 2,090
U.S. Treasury - Bonds (GOVE)
6.125% due 08/15/29 #. . . . . . . . . . . 2,170 2,069
6.25% due 02/28/02 # . . . . . . . . . . . 7,100 7,098
8.0% due 11/15/21 #. . . . . . . . . . . . 560 636
U.S. Treasury Bills (GOVE)
0.0% due 03/02/00 # . . . . . . . . . . . 300 296
-------
25,313
-------
TOTAL PUBLICLY-TRADED BONDS- 96.2% 68,281
COMMERCIAL PAPER - 7.0%
United States - 7.0%
E.I. du Pont de Nemours & Co. (CHEM)
5.78% due 01/20/00 #. . . . . . . . . . . 1,500 1,495
Xerox Capital Europe plc (FINL) . . . . .
5.83% due 01/19/00 #. . . . . . . . . . . 3,500 3,490
-------
4,985
SHORT-TERM INVESTMENTS - 3.9%
United States - 3.9%
Investment in joint trading account (Note B)
5.242% due 01/03/00 . . . . . . . . . . . 2,784 2,784
-------- -------
TOTAL INVESTMENTS- 107.1% 76,050
Payables, less cash and receivables- (7.1)% (5,059)
-------- -------
NET ASSETS- 100.0% $70,991
======== =======
</TABLE>
# Securities, or a portion thereof, with an aggregate market value of $29,975
have been segregated to collateralize financial futures contracts.
See notes to financial statements.
157
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Foreign Governmental . . . GOVF $36,860 54.0%
U.S. Governmental . . . . . GOVE 10,099 14.8%
U.S. Government Agencies . GOVA 8,292 12.1%
Banks . . . . . . . . . . . BANK 3,494 5.1%
Financial Services . . . . FINL 3,424 5.0%
Personal and Commercial
Lending. . . . . . . . . . LEND 2,090 3.1%
Chemicals . . . . . . . . . CHEM 1,406 2.0%
Health Care Products . . . HEAL 1,338 2.0%
Telecommunication Equipment TELE 964 1.4%
Foreign . . . . . . . . . . FORG 314 0.5%
------- -----
$68,281 100.0%
======= =====
</TABLE>
158
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 thirty-one portfolios: Large Cap Growth, Fundamental
Mid Cap Growth, Aggressive Balanced, Sovereign Bond, Emerging Markets Equity,
International Equity Index, Global Equity, International Equity, Small Cap
Growth, International Balanced, Mid Cap Growth, Mid Cap Blend, Large Cap Value,
Large Cap Value CORE, Large/Mid Cap Value, Money Market, Mid Cap Value,
Small/Mid Cap Growth (formerly, Diversified Mid Cap Growth), Bond Index, Large
Cap Aggressive Growth, Small/Mid Cap CORE, Small/Mid Cap Value, 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) Portfolios. 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") and to Investors Partner Life Account L
("IPLL") to fund contracts and policies issued by Investors Partner Life
("IPL").
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, Fundamental Mid Cap
Growth, Aggressive Balanced, Emerging Markets Equity, Small Cap Growth, Mid Cap
Growth, Mid Cap Blend, Large Cap Value, Large Cap Value CORE, Large/Mid Cap
Value, Mid Cap Value, Small/Mid Cap Growth, Large Cap Aggressive Growth,
Small/Mid Cap CORE, Small/Mid Cap Value, 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 Equity Index, Global Equity, International Equity,
International Balanced and International Opportunities 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
159
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NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
with no sales on the day of valuation are normally valued at their last
available bid price. All Portfolio securities initially expressed in terms of
foreign currencies have been translated into U.S. Dollars as described in
"Currency Translation."
Investment securities for which no current market quotations are readily
available, including certain foreign securities, when held by the Portfolios,
are valued at fair value as determined in good faith by the Board of Trustees.
Investment security transactions are recorded on the date of purchase or
sale. Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Dividend income for the Large Cap Growth,
Emerging Markets Equity, International Equity Index, Global Equity,
International Equity, International Balanced, Mid Cap Growth, Large Cap Value,
Mid Cap Value, Growth & Income, Managed, Small Cap Value, International
Opportunities and Equity Index Portfolios are shown net of foreign taxes
withheld of $2, $18, $388, $19, $5, $33, $1, $24, $1, $377, $295, $1, $142 and
$40, respectively. Realized gains and losses from security transactions are
determined on the basis of identified cost.
Securities Lending: Certain Portfolios (Large Cap Growth, Sovereign Bond,
International Equity Index, Small Cap Growth, Mid Cap Growth, Large Cap Value,
Mid Cap Value, Small/Mid Cap Growth, Growth & Income, Managed, Short-Term Bond,
International Opportunities and Global Bond) may lend their securities to
certain qualified brokers who pay these Portfolios negotiated lender fees. These
fees are included in interest income. The loans are collateralized at all times
with cash or securities with a market value at least equal to the market value
of the securities on loan. As with other extensions of credit, these Funds may
bear the risk of delay of the loaned securities in recovery or even loss of
rights in the collateral should the borrower of the securities fail financially.
At December 31, 1999, the market value of the securities loaned and the market
value of the collateral were as follows.
Value of Securities Loaned Value of Collateral
-------------------------- -------------------
Large Cap Growth ............ $ 36,800 $ 37,432
Sovereign Bond .............. 96,099 98,170
International Equity Index... 1,074 1,130
Small Cap Growth ............ 44,837 45,520
Mid Cap Growth .............. 122,638 125,058
Large Cap Value ............. 17,093 17,489
Mid Cap Value ............... 21,126 21,402
Small/Mid Cap Growth ........ 24,338 25,561
Growth & Income ............. 92,917 92,846
Managed ..................... 217,254 221,501
Short-Term Bond ............. None None
International Opportunities.. 2,914 2,994
Global Bond ................. 10,015 10,232
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 and Small 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
160
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NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
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.
The International Equity, Large Cap Value CORE and Small/Mid Cap CORE
Portfolios of the Fund, along with other registered investment companies having
a management contract with Goldman Sachs Asset Management (the "Sub-Adviser"),
may participate in a joint repurchase agreement pursuant to an exemptive order
issued by the Securities and Exchange Commission. Aggregate cash balances are
invested in one or more repurchase agreements, whose underlying securities are
obligations of the U.S. Government and/or its agencies. The Fund's custodian
bank receives delivery of the underlying securities for the joint repurchase
agreement on the Fund's behalf. The Sub-Adviser is responsible for ensuring that
the agreement is fully collateralized at all times.
Joint Trading Account: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the order permits the existing Portfolios of
the Fund to pool daily uninvested cash balances, together with the balances of
any future Portfolios of the Fund, into a joint account for the purpose of
investing the cash balances in short-term repurchase agreements, commercial
paper and other short-term investments which in no event will have a maturity in
excess of seven days. Joint Account holdings as of December 31, 1999:
Par Market
Name of Issuer Value Value
-------------- -------- --------
American Express Co.
5.00% due 01/05/00 ........................... $ 40,000 $ 39,978
Chevron USA, Inc.
5.00% due 01/03/00 ........................... 40,000 39,978
Den Danske Corp.
4.50% due 01/03/00 ........................... 150,000 150,019
Deutsche Bank AG
5.00% due 01/05/00 ........................... 40,000 39,978
Exxon Asset Management Co.
6.30% due 01/03/00 ........................... 40,000 39,979
Household Finance Corp.
6.00% due 01/03/00 .......................... 40,000 39,987
Nestle Capital Corp.
6.00% due 01/04/00 ........................... 40,000 39,980
PNC Bank NA
5.50% due 01/03/00 ........................... 77,715 77,727
-------- --------
Joint Trading Account Totals ............. $467,715 $467,626
======== ========
Financial Futures Contracts: The Sovereign Bond, Emerging Markets Equity,
International Equity Index, Global Equity, International Equity, Small Cap
Growth, International Balanced, Mid Cap Growth, Large Cap Value CORE, 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.
161
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NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
When the contracts are closed, the Portfolio recognizes a gain or a loss.
Risk of entering into futures contracts include the possibility that there may
be an illiquid market and/or that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. In addition,
the Portfolio could be prevented from opening or realizing the benefits of
closing out futures positions because of position limits or limits on daily
price fluctuations imposed by an exchange. At December 31, 1999, open positions
in financial futures contracts were as follows:
Sovereign Bond Portfolio
Face
Expiration Amount Unrealized
Sold Date at Value Gain
---- ---------- -------- ----------
86 contracts
U.S. Long Bond Future .............. Mar., 2000 $7,821 $177
International Equity Index Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
--------- ---------- -------- ----------
27 contracts
CAC-40 Index Future ................ Mar., 2000 $1,535 $ 98
10 contracts
DAX Index Future ................... Mar., 2000 1,593 167
14 contracts
FTSE 100 Index Future .............. Mar., 2000 1,520 51
31 contracts
Nikkei 225 Index Future ............ Mar., 2000 2,857 73
------ ----
$7,505 $389
====== ====
International Equity Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
--------- ---------- -------- ----------
2 contracts
TOPIX Index Future ................. Mar., 2000 $ 335 $ 20
Large Cap Value Core Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
--------- ---------- -------- ----------
1 contract
S&P 500 Index Future ............... Mar., 2000 $ 371 $ 3
3 contracts
CME E-Mini S&P 500 Index Future .... Mar., 2000 223 5
------ ----
$ 594 $ 8
====== ====
162
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NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
Small/Mid Cap Core Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
--------- ---------- ---------- ----------
1 contract
Russell 2000 Index Future .......... Mar., 2000 $510 $7
Equity Index Portfolio
Face
Expiration Amount Unrealized
Purchased Date at Value Gain
--------- ---------- ---------- ------------
37 contracts
S&P 500 Index Futures .............. Mar., 2000 $13,729 $355
Global Bond Portfolio
Face
Expiration Amount Unrealized
Sold Date at Value Gain/(Loss)
---- ---------- ---------- -------------
51 contracts
U.S. 10 Year Treasury Note Future .. Mar., 2000 $4,889 $101
Purchased
---------
20 contracts
U.S. 5 Year Treasury Note Future . . . . Mar., 2000 $1,960 $(12)
------ -----
$6,849 $ 89
====== =====
At December 31, 1999, the International Equity, Large Cap Value CORE and
Small/Mid Cap CORE portfolios had deposited $45, $45 and $35, respectively, in a
segregated account to cover margin requirements on open financial futures
contracts.
Forward Foreign Currency Contracts: The Fund may use forward foreign
currency contracts to facilitate transactions in foreign securities and to
manage a 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.
163
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NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
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, 1999, the Fund had approximate net tax basis capital
loss carryforwards, which may be applied against any net taxable gains, as
follows: Sovereign Bond had $21,049, which expires in 2007; Global Equity had
$281, which expires in 2006; Money Market had $14, which expires in 2007; Mid
Cap Value had $8,121, which expires in 2006 and $1,558, which expires in 2007;
Bond Index had $158, which expires in 2007; Small/Mid Cap CORE had $25, which
expires in 2006; Real Estate Equity had $4,280, which expires in 2007;
Short-Term Bond had $131, which expires in 2006 and $1,304, which expires in
2007; Small Cap Value had $1,445, which expires in 2006; High Yield Bond had
$276, which expires in 2007; and Global Bond had $1,234, which expires in 2007.
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 and Mid Cap Blend Portfolios, 0.75% on an
annual basis of the first $250,000 of the net assets of each Portfolio;
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;
164
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NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
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%
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;
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;
For the Fundamental Mid Cap Growth Portfolio, 0.85% on an annual basis
of the first $50,000 of the Portfolio's net assets; 0.80% for net assets
between $50,000 and $100,000; 0.75% for net assets between $100,000 and
$150,000; and 0.70% for net assets in excess of $150,000;
For the Aggressive Balanced Portfolio, 0.675% on an annual basis of
the first $250,000 of the Portfolio's net assets; 0.625% for net assets
between $250,000 and $500,000; and 0.60% for net assets in excess of
$500,000;
For the International Equity Portfolio, 1.0% on an annual basis of the
first $50,000 of the Portfolio's net assets; 0.95% for net assets between
$50,000 and $200,000; and 0.90% for net assets in excess of $200,000;
For the Large Cap Value CORE Portfolio, 0.75% on an annual basis for
the first $50,000 of the Portfolio's net assets; 0.65% for net assets
between $50,000 and $200,000; and 0.60% in excess of $200,000;
For the Large/Mid Cap Value Portfolio, 0.95% on an annual basis for
the first $25,000 of the Portfolio's net assets; 0.85% for net assets
between $25,000 and $50,000; 0.75% for net assets between $50,000 and
$100,000; and 0.65% for net assets in excess of $100,000;
For the Large Cap Aggressive Growth Portfolio, 1.0% on an annual basis
for the first $10,000 of the Portfolio's net assets; 0.875% for net assets
between $10,000 and $20,000; 0.75% for net assets in excess of $20,000;
For the Small/Mid Cap Value Portfolio, 0.95% on an annual basis for
the first $100,000 of the Portfolio's net assets; 0.90% for net assets
between $100,000 and $250,000; 0.85% for net assets in excess of $250,000.
John Hancock voluntarily reimbursed and/or waived all investment advisory
and other fund expenses of the Equity Index Portfolio for the year ended
December 31, 1999. 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.
165
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES--CONTINUED
During the year ended December 31, 1999, the Investment Adviser voluntarily
contributed approximately $445 to the Emerging Markets Equity Portfolio. John
Hancock received no shares of beneficial interest or other consideration in
exchange for the contribution which increased the Portfolios' net asset values.
This capital contribution is the result of foregone appreciation of investments
due to an excess investment in cash.
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment Associates, Inc., with respect to the Large Cap Growth, Aggressive
Balanced, Mid Cap Blend, Real Estate Equity, Growth & Income, Managed and
Short-Term Bond; with Independence International Associates, Inc., 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, Inc., with respect to the International
Opportunities Portfolio; with Janus Capital Corporation, with respect to the Mid
Cap Growth Portfolio; with Neuberger Berman, LLC, with respect to the Mid Cap
Value Portfolio; with INVESCO Management & Research, Inc., 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 Bank & Trust
N.A., with respect to the Equity Index Portfolio; with Goldman Sachs Asset
Management, with respect to the International Equity, Large Cap Value CORE and
Small/Mid Cap CORE Portfolios; with Scudder Kemper Investments, Inc., with
respect to the Global Equity Portfolio; with Morgan Stanley Dean Witter
Investment Management, Inc., with respect to the Emerging Markets Equity
Portfolio; with Mellon Bond Associates, LLP, with respect to the Bond Index
Portfolio; with Wellington Management Company, LLP, with respect to the
Large/Mid Cap Value, Small/Mid Cap Growth and High Yield Bond Portfolios; with
Oppenheimer Funds, Inc. with respect to the Fundamental Mid Cap Growth
Portfolio; with Alliance Capital Management, LLP, with respect to the Large Cap
Aggressive Growth Portfolio; and with The Boston Company Asset Management, LLC,
with respect to the Small/Mid Cap Value Portfolio; 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, JHVAAJF, and IPL 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 year ended December 31, 1999, the reimbursements paid from
John Hancock and JHVLICO were $3 to Fundamental Mid Cap Growth, $7 to Aggressive
Balanced, $294 to Emerging Markets Equity, $139 to International Equity Index,
$62 to Global Equity, $22 to International Equity, $91 to International
Balanced, $6 to Mid Cap Blend, $6 to Large Cap Value CORE, $7 to Large/ Mid Cap
Value, $1 to Small/Mid Cap Growth, $17 to Bond Index, $4 to Large Cap Aggressive
Growth, $78 to Small/ Mid Cap CORE, $9 Small/Mid Cap Value, $6 to Small Cap
Value, $92 to International Opportunities, $275 to Equity Index, $42 to High
Yield Bond and $1 to Global Bond.
166
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 year ended December 31, 1999
were as follows:
Sales and
Purchases Maturities
--------- ----------
Large Cap Growth ......................... $ 903,284 $ 916,648
Fundamental Mid Cap Growth ............... 9,721 3,925
Aggressive Balanced ...................... 18,326 7,395
Sovereign Bond ........................... 1,519,597 1,521,076
Emerging Markets Equity .................. 39,496 26,837
International Equity Index ............... 47,091 35,191
Global Equity ............................ 11,090 8,289
International Equity ..................... 12,612 2,907
Small Cap Growth ......................... 151,940 111,851
International Balanced ................... 38,251 37,788
Mid Cap Growth ........................... 358,349 209,791
Mid Cap Blend ............................ 7,997 2,893
Large Cap Value .......................... 81,109 49,574
Large Cap Value CORE ..................... 7,226 1,661
Large/Mid Cap Value ...................... 6,871 1,215
Money Market ............................. None None
Mid Cap Value ............................ 123,341 130,421
Small/Mid Cap Growth ..................... 303,987 329,098
Bond Index ............................... 21,696 8,568
Large Cap Aggressive Growth .............. 14,572 2,261
Small/Mid Cap CORE ....................... 8,111 6,395
Small/Mid Cap Value ...................... 7,638 2,558
Real Estate Equity ....................... 17,843 33,026
Growth & Income .......................... 2,720,335 2,716,958
Managed .................................. 6,828,183 6,913,556
Short-Term Bond .......................... 69,655 75,514
Small Cap Value .......................... 80,420 74,221
International Opportunities .............. 22,103 27,028
Equity Index ............................. 345,121 181,428
High Yield Bond .......................... 11,115 6,261
Global Bond .............................. 232,454 219,766
167
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 December 31, 1999
for federal income tax purposes are as follows:
<TABLE>
<CAPTION>
Net Unrealized
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Large Cap Growth ............................. $ 1,004,796 $ 413,076 $ (42,592) $ 370,484
Fundamental Mid Cap Growth ................... 6,583 2,283 (105) 2,178
Aggressive Balanced .......................... 11,010 1,015 (407) 608
Sovereign Bond ............................... 826,661 1,462 (27,764) (26,302)
Emerging Markets Equity ...................... 22,913 8,719 (654) 8,065
International Equity Index ................... 178,859 68,439 (12,918) 55,521
Global Equity ................................ 17,019 5,600 (1,416) 4,184
International Equity ......................... 9,914 2,262 (310) 1,952
Small Cap Growth ............................. 119,714 61,524 (2,928) 58,596
International Balanced ....................... 28,584 3,685 (1,617) 2,068
Mid Cap Growth ............................... 273,245 176,307 (6,276) 170,031
Mid Cap Blend ................................ 5,375 593 (291) 302
Large Cap Value .............................. 145,430 16,254 (12,238) 4,016
Large Cap Value CORE ......................... 5,647 418 (349) 69
Large/Mid Cap Value .......................... 5,676 500 (288) 212
Money Market ................................. 449,739 None None None
Mid Cap Value ................................ 85,350 10,833 (6,320) 4,513
Small/Mid Cap Growth ......................... 168,379 21,205 (15,710) 5,495
Bond Index ................................... 39,592 7 (2,274) (2,267)
Large Cap Aggressive Growth .................. 12,447 2,603 (486) 2,117
Small/Mid Cap CORE ........................... 7,110 1,430 (591) 839
Small/Mid Cap Value .......................... 5,291 404 (345) 59
Real Estate Equity ........................... 126,926 7,385 (10,358) (2,973)
Growth & Income .............................. 3,060,142 1,262,994 (107,226) 1,155,768
Managed ...................................... 2,863,327 613,036 (105,324) 507,712
Short-Term Bond .............................. 66,313 9 (1,402) (1,393)
Small Cap Value .............................. 67,971 5,104 (6,887) (1,784)
International Opportunities .................. 55,043 23,812 (2,418) 21,394
Equity Index ................................. 364,620 112,428 (21,303) 91,125
High Yield Bond .............................. 19,451 446 (1,235) (789)
Global Bond .................................. 71,639 201 (3,559) (3,358)
</TABLE>
During the year ended December 31, 1999, reclassifications have been made
in each Portfolio's capital accounts to report these balances on a tax basis,
excluding certain temporary differences, as of December 31, 1999. These
permanent reclassifications are primarily attributable to differences in the
treatment of foreign currency gains and losses, net operating losses and return
of capital under federal tax rules versus generally accepted accounting
principles. Net assets were not affected by these reclassifications.
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS
As of December 31, 1999 the Emerging Markets Equity, International Equity
Index, Global Equity, International Balanced, Mid Cap Growth, 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:
168
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
EMERGING MARKETS EQUITY PORTFOLIO
Maturity Net Unrealized
Currency Sold Date Cost Value Appreciation
------------------------------- -------- ------- ------- --------------
Greek Drachma .......... 5,958 01/03/00 $18 $18 $0
Currency Purchased
-------------------------------
South African Rand ..... 110 01/06/00 $18 $18 $0
INTERNATIONAL EQUITY INDEX PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
-------------------------------- -------- ------- ------- ----------------
Euro Dollar ............ 485 03/17/00 $ 492 $ 491 $ 1
Euro Dollar ............ 215 03/31/00 220 218 2
Japanese Yen ........... 70,390 03/09/00 696 697 (1)
Pound Sterling ......... 138 03/17/00 222 222 0
----
2
----
Currency Purchased
--------------------------------
Euro Dollar ............ 2,204 03/17/00 $2,244 $2,233 $(11)
Euro Dollar ............ 1,796 03/31/00 1,825 1,821 (4)
Japanese Yen ........... 363,474 03/09/00 3,593 3,597 4
Pound Sterling ......... 1,084 03/17/00 1,751 1,751 0
----
(11)
----
$ (9)
====
INTERNATIONAL BALANCED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
-------------------------------- -------- ------- ------- ----------------
Canadian Dollar ........ 5,100 03/27/00 $3,472 $3,540 $ (68)
Danish Krone ........... 4,800 03/27/00 680 653 27
Euro Dollar ............ 2,100 03/27/00 2,181 2,129 52
Pound Sterling ......... 1,700 03/27/00 2,759 2,746 13
Japanese Yen ........... 297,000 03/27/00 2,930 2,948 (18)
Swiss Franc ............ 200 03/27/00 132 127 5
-----
11
-----
Currency Purchased
--------------------------------
Australian Dollar ...... 1,200 03/27/00 $ 777 $ 789 $ 12
Canadian Dollar ........ 4,400 03/27/00 3,012 3,055 43
Danish Krone ........... 1,000 03/27/00 143 136 (7)
Euro Dollar ............ 4,500 03/27/00 4,725 4,562 (163)
Japanese Yen ........... 280,000 03/27/00 2,700 2,779 79
Pound Sterling ......... 400 03/27/00 656 646 (10)
Swiss Franc ............ 1,000 03/27/00 662 634 (28)
-----
(74)
-----
$ (63)
=====
169
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 1999
--------------------------------------------------------------------------------
(000's Omitted)
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS--CONTINUED
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Maturity Net Unrealized
Currency Sold Date Cost Value Appreciation
---------------------------------- -------- -------- -------- --------------
<S> <C> <C> <C> <C> <C>
Pound Sterling ...... 12 01/04/00 $19 $19 $0
<CAPTION>
MANAGED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
---------------------------------- -------- --------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Australian Dollar ... 4,011 02/03/00 $ 2,642 $ 2,634 $ 8
Canadian Dollar ..... 16,784 02/03/00 11,516 11,637 (121)
Danish Krone ........ 36,855 02/03/00 5,274 4,999 275
Euro Dollar ......... 128,044 02/03/00 136,408 129,311 7,097
Euro Dollar ......... 24,455 02/04/00 26,268 24,699 1,569
Euro Dollar ......... 55,978 02/07/00 59,014 56,550 2,464
Japanese Yen ........ 9,946,818 02/03/00 95,620 97,909 (2,289)
Japanese Yen ........ 12,386,651 02/04/00 118,702 121,944 (3,242)
Pound Sterling ...... 14,363 02/03/00 23,705 23,204 501
Pound Sterling ...... 10,087 02/04/00 16,539 16,296 243
Pound Sterling ...... 15,212 02/07/00 24,459 24,576 (117)
Swedish Krona ....... 38,729 02/03/00 4,764 4,562 202
Swiss Franc ......... 63,976 02/04/00 43,156 40,352 2,804
Swiss Franc ......... 63,852 02/07/00 42,122 40,288 1,834
-------
11,228
-------
<CAPTION>
Currency Purchased
----------------------------------
<S> <C> <C> <C> <C> <C>
Australian Dollar ... 1,178 02/03/00 $ 761 $ 774 $ 13
Canadian Dollar ..... 4,306 02/03/00 2,931 2,985 54
Danish Krone ........ 11,199 02/03/00 1,553 1,519 (34)
Euro Dollar ......... 28,532 02/03/00 29,500 28,815 (685)
Euro Dollar ......... 24,464 02/04/00 26,268 24,708 (1,560)
Euro Dollar ......... 35,317 02/07/00 37,198 35,678 (1,520)
Japanese Yen ........ 2,055,261 02/03/00 20,161 20,231 70
Japanese Yen ........ 14,580,192 02/04/00 140,518 143,539 3,021
Pound Sterling ...... 3,434 02/03/00 5,550 5,547 (3)
Pound Sterling ...... 10,049 02/04/00 16,538 16,234 (304)
Pound Sterling ...... 15,103 02/07/00 24,458 24,398 (60)
Swedish Krona ....... 6,684 02/03/00 798 787 (11)
Swiss Franc ......... 63,628 02/04/00 43,156 40,133 (3,023)
Swiss Franc ......... 31,117 02/07/00 20,306 19,633 (673)
-------
(4,715)
-------
$ 6,513
=======
</TABLE>
170
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 ...... 2,407 01/19/00 $ 1,647 $ 1,669 $ (22)
Euro Dollar .......... 28,000 01/19/00 29,481 28,245 1,236
Japanese Yen ......... 578,409 01/19/00 5,596 5,679 (83)
Pound Sterling ....... 3,019 01/19/00 4,969 4,877 92
Swedish Krona ........ 26,582 01/19/00 3,218 3,128 90
------
1,313
------
Currency Purchased
--------------------------------
Euro Dollar .......... 139 01/19/00 $ 141 $ 140 $ (1)
Pound Sterling ....... 783 01/19/00 1,271 1,264 (7)
------
(8)
------
$1,305
======
171
<PAGE>
NOTES TO FINANCIAL STATEMENTS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
December 31, 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 special meetings of Contractowner/Policyholders held on August 20,
1999 and November 20, 1999 on the following matters:
For Against Abstain
--- ------- -------
FOR THE SMALL/MID CAP GROWTH FUND 8/20/99:
1. To approve the revision of the
investment strategy of the
Diversified Mid Cap Growth
Portfolio of the Series Trust to
reflect a focus on investments on
stocks having a small to mid-sized
market capitalization; to rename
the Portfolio the "Small/Mid Cap
Growth Fund"; and to approve a new
sub-investment management
agreement appointing Wellington
Management Company, LLP as the
Fund's sub-investment manager. The
resolution was adopted by, 82% 3% 15%
For Against Abstain
--- ------- -------
FOR THE EMERGING MARKETS EQUITY FUND 11/19/99:
1. To approve the termination of the
sub-investment management agreement
with Montgomery Asset Management,
LLC, effective August 1, 1999; and
to approve a new sub-investment
management agreement appointing
Morgan Stanley Dean Witter Investment
Management, Inc. as the Fund's
sub-investment manager. 84% 1% 15%
172
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Contractowners, Policyholders,
and Board of Trustees of
John Hancock Variable Series Trust I
We have audited the accompanying statement of assets and liabilities,
including the schedules of investments, of John Hancock Variable Series Trust
I (the Fund) (comprising, respectively, the Large Cap Growth, Sovereign Bond,
Emerging Markets Equity, International Equity Index, 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, Global Bond (formerly, Strategic Bond), Large Cap Aggressive
Growth, Small/Mid Cap Value, Large Cap Value CORE, International Equity, Mid
Cap Blend, Aggressive Balanced, Fundamental Mid Cap Growth, and Large/Mid Cap
Value Portfolios) as of December 31, 1999, and the related statements of
operations for the period then ended, and the statement of changes in net
assets and financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation
of securities owned as of December 31, 1999, by correspondence with the
custodian or brokers, or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting John Hancock Variable Series
Trust I at December 31, 1999, the results of their operations for the period
then ended, and the changes in their net assets and the financial highlights
for each of the periods indicated, in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 10, 2000
173
<PAGE>
Officers and Trustees
Michele G. Van Leer, Chairman
Thomas J. Lee, President and Vice Chairman
Karen Q. Visconti, Secretary
Arnold Bergman, Assistant Secretary
Raymond F. Skiba, Treasurer
Maryellen Maurer, Compliance Officer
Patrick F. Smith, Controller
Paula M. Pashko, Assistant 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
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
Sub-Investment Advisers
Independence Investment Associates, Inc. and subsidiaries
53 State Street
Boston, MA 02109
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, NY 10105
The Boston Company Asset Management, LLC
One Boston Place
Boston, MA 02108
Brinson Partners, Inc.
209 South La Salle Street
Chicago, IL 60604-1295
Goldman Sachs Asset Management
32 Old Slip
New York, NY 10005
INVESCO, Inc.
101 Federal Street
Boston, MA 02110
J.P. Morgan Investment Management Inc.
522 Fifth Avenue
New York, NY 10036
Janus
100 Fillmore Street
Denver, CO 80206-4928
Mellon Bond Associates, LLP
One Mellon Bank Center, Suite 5400
Pittsburgh, PA 15258-0001
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, MA 02199
Morgan Stanley Asset Management
1221 Avenue of the Americas
New York, NY 10020
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
OppenheimerFunds
Two World Trade Center
New York, NY 10048-0203
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
<PAGE>
[LOGO OF JOHN HANCOCK]
The Variable Series Trust consists of 31 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 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
S8128 2/00 [LOGO OF IMSA]
<PAGE>
SEMIANNUAL REPORT
June 30, 2000
A step ahead
INSURANCE FOR THE UNEXPECTED.
INVESTMENTS FOR THE OPPORTUNITIES.(R)
[LOGO OF JOHN HANCOCK ADVISERS]
[LOGO OF INDEPENDENCE INVESTMENT ASSOCIATES, INC.]
[LOGO OF ALLIANCE CAPITAL]
[LOGO OF THE BOSTON COMPANY]
[LOGO OF BRINSON PARTNERS, INC.]
[LOGO OF FEDERATED]
[LOGO OF GOLDMAN SACHS]
[LOGO OF INVESCO]
[LOGO OF JP MORGAN]
[LOGO OF JANUS]
[LOGO OF MELLON BOND]
[LOGO OF MORGAN STANLEY DEAN WITTER]
[LOGO OF NEUBERGER BERMAN]
[LOGO OF OPPENHEIMER FUNDS]
[LOGO OF STATE STREET GLOBAL ADVISORS]
[LOGO OF T. ROWE PRICE]
[LOGO OF WELLINGTON MANAGEMENT]
[LOGO OF VARIABLE SERIES TRUST]
[LOGO OF JOHN HANCOCK]
<PAGE>
SEMIANNUAL REPORT
June 30, 2000
A step ahead
INSURANCE FOR THE UNEXPECTED.
INVESTMENTS FOR THE OPPORTUNITIES.(R)
[LOGO OF JOHN HANCOCK ADVISERS]
[LOGO OF INDEPENDENCE INVESTMENT ASSOCIATES, INC.]
[LOGO OF ALLIANCE CAPITAL]
[LOGO OF THE BOSTON COMPANY]
[LOGO OF BRINSON PARTNERS, INC.]
[LOGO OF FEDERATED]
[LOGO OF GOLDMAN SACHS]
[LOGO OF INVESCO]
[LOGO OF JP MORGAN]
[LOGO OF JANUS]
[LOGO OF MELLON BOND]
[LOGO OF MORGAN STANLEY DEAN WITTER]
[LOGO OF NEUBERGER BERMAN]
[LOGO OF OPPENHEIMER FUNDS]
[LOGO OF STATE STREET GLOBAL ADVISORS]
[LOGO OF T. ROWE PRICE]
[LOGO OF WELLINGTON MANAGEMENT]
[LOGO OF VARIABLE SERIES TRUST]
[LOGO OF JOHN HANCOCK]
Insurance products:
Are Not FDIC Insured . Are Not Bank Guaranteed . Are Not a Deposit .
May Lose Value
<PAGE>
Dear Shareholder,
[PHOTO OF THOMAS J. LEE]
President and Vice Chairman
Financial markets have been wild over the past few months, to say the least. The
changes going on in the economy and government actions have had a dramatic
effect on the stock market and the economy in general. The Federal Reserve's
stated goal of slowing the U.S. economy has dominated debate in financial
markets during the first half of 2000. Alan Greenspan and his colleagues are
fully convinced that inflation, driven by rising wages, will rebound if strong
job growth continues to drive unemployment down to new record lows. They have
raised short-term interest rates six times over the past year, and the impact of
those tightening moves is now appearing in signs of weaker home-building and
auto sales, slower retail sales, and job growth. Nonetheless, the overall level
of economic activity and corporate profits remains very healthy, and it may take
more rate hikes by the Fed to prevent the economic boom from speeding up once
again.
To better assist our Variable Series Trust shareholders through rapidly changing
and volatile economic time periods, we continually evaluate and implement ideas
to help add stability to our variable life and variable annuity products and
services. An important service offered to our shareholders for these products is
Dollar-Cost Averaging-depositing equal amounts of money at regular intervals
into your John Hancock Variable Life or Variable Annuity products. This ensures
that you buy fewer shares when prices are high and more shares when prices are
low.
We've also developed asset allocation tools which help you to diversify your
investment mix among various asset classes. An asset allocation strategy
attempts to lower your overall investment risk by increasing the number and
types of funds you're invested in. Contact your representative if you're
interested in learning more about how an asset allocation strategy can work for
you.
Change. Adaptability. These are the watchwords that we use in monitoring the
Variable Series Trust. Much of our time is devoted to ensure that we change and
adapt quickly enough to provide you with the best possible products and funds
available in the marketplace today. You've shown your trust in us by investing
more and more dollars in your variable life and variable annuity products. Thank
you, for your continued confidence in John Hancock and the Variable Series
Trust. We'll continue to work hard to maintain your trust.
[PHOTO OF 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
John Hancock Economic Research
The US economy continued to defy expectations in the first half of 2000. Growth
not only exceeded all estimates of a sustainable long-term pace, but actually
accelerated from the first quarter to the second. Despite this rapid growth,
unemployment remained in a narrow range around 4%, and inflation showed few
signs of life aside from the impact of higher oil prices.
In financial markets, Treasury bond rates have declined from their peaks early
this year, but this has been mainly the result of increasing budget surpluses
which reduce the government's borrowing needs. Corporate bond yields have not
declined, and short-term rates have continued to rise as the Federal Reserve
attempts to cool the economy. Home mortgage rates remain higher than last year,
and have contributed to a slowdown in housing markets.
Stock prices have been volatile throughout the year, reacting to every twist
and turn of data that might hint at an economic slowdown or a revival of
inflation. All the major indices are down from their peaks, but with corporate
profits still healthy, inflation still absent, and the Fed at least temporarily
on hold, there has been no ongoing slump in the markets.
Investors in both stock and bonds, as well as economic forecasters, have spent
much of 2000 studying--somewhat obsessively--Alan Greenspan's pronouncements
for hints of his intentions. So far, he has expressed guarded optimism about
the ability of the US economy to sustain rapid growth, and a consensus has
developed that, barring accidents, he has finished tightening. He appears to
believe that the last few years' rapid productivity growth represents a
structural improvement in the performance of the economy. The importance of
this is that it implies that we need only a mild economic slowdown to rein in
the boom and get the economy back to a sustainable pace of expansion.
The soft landing: it's not yet a sure thing
The outlook both for the economy and for financial markets is driven by the
quest for a "soft landing"--a slowdown to a sustainable pace of growth. We are
inclined to believe that the Fed has successfully steered us between the
opposing dangers of recession and inflation, but the data is still mixed.
Despite the acceleration of GDP in the second quarter of 2000, there are strong
signals of more moderate growth ahead. Inventories--a notoriously volatile
component--more than accounted for the second-quarter speed-up, while consumer
spending, the principal driver of the boom so far, slowed sharply. Since this
has been Alan Greenspan's chief worry, with stock market gains fuelling
unsustainable consumer spending, the restraint is reassuring.
Other data also suggest slower growth: housing and auto sales have cooled off,
at least to the extent of growing slower, retail sales have moderated, and the
trend in new job creation seems to have slowed.
But it's not a sure thing. There have been signs of a slowdown before--for
example, during the financial turmoil in 1998--and each time the economic boom
has bounced right back. Even now some numbers hint at a rebound. Business
equipment spending is still very strong, consumer confidence is high,
unemployment is low, and rising wages are driving incomes and consumer spending
in the latest monthly data.
Inflation: so far it's just oil prices
The Consumer Price Index (CPI) rose at a 4% annual pace in the first quarter,
and was still running at over 3% in the second. However, excluding the ups and
downs of food and energy prices, inflation remained under 3%, and there has
been remarkably little impact of oil prices on other goods and services.
The Fed's chief inflation worry is still the job market, where it fears that
30-year lows in unemployment will drive up wages and force companies to raise
prices. So far, despite signing bonuses, stock options and other forms of
increased compensation, there is no evidence in the national statistics that
wages are increasing much faster than productivity. It's true that firms face
intense competition to hire good workers, but they also face intense
competition for sales which discourages price hikes.
The danger of inflation has not disappeared despite the recent benign
experience. If productivity slows, or even if it stops accelerating, we could
have a period in which rising labor costs finally force firms to raise prices.
While this risk appears to be much smaller than we would have guessed a few
years ago, it can never wholly vanish. This is the reason why Alan Greenspan
has raised interest rates six times since June, 1999, and it is why he may do
so again if economic growth and inflation data raise danger signals during the
months ahead.
1
<PAGE>
Inception: March 29, 1986
Growth & Income Fund
Independence Investment Associates, Inc. Paul F. McManus
The Growth & Income Fund outperformed the S&P 500 in the second quarter and
is in line with the index through mid year. The fund had modest overweights in
the Health Care, and Financial groups and was modestly underweighted in
Consumer Products, Energy and Technology. Strong performance in the drug group
from names like Pfizer (which merged with Warner Lambert, also owned),
Schering Plough and Allergan Pharmaceutical positively impacted fund
performance. Banks were another area of successful stock selection as Mellon
Financial, Chase Manhattan and CitiGroup helped performance. Given the
increased interest rate environment, investors sold retail and cyclical names.
The fund had exposure to Target, Gap Stores and Federated Department Stores
during the quarter. We believe that they are attractive at current valuations,
particularly Gap Stores which is expected to accelerate its revenue growth as
the year progresses. In the technology area performance was helped by names
like Hewlett Packard, Cisco, ADC Telecomm and Teredyne. Earlier in the year
and in the fourth quarter of 1999, technology speculation reached a peak and
as interest rates rose, the group sold off beginning in March. Our strategy
all along has been to select high quality, reasonably valued technology stocks
and this has served the fund well amidst the volatility in the sector.
As we look out to the balance of 2000, we expect interest rates to peak as
the economy slows down from it's strong first half growth pace. Oil prices
should ease as OPEC countries increase production during a period of economic
deceleration and this will be beneficial to the inflation rate. If rates do
indeed decline in the coming months, the stock market should respond
favorably. In particular, value based strategies selecting stocks that have
attractive prices and improving fundamental trends should do well.
[GRAPH]
Historical Fund Return
Growth and Income S&P 500.
Index
6/30/90 10,000 10,000
6/30/91 11,140 10,739
6/30/92 12,590 12,185
6/30/93 14,446 13,840
6/30/94 14,813 14,026
6/30/95 18,028 17,677
6/30/96 22,479 22,281
6/30/97 28,763 30,003
6/30/98 38,170 39,067
6/30/99 46,448 47,955
6/30/00 48,199 51,432
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Pfizer, Inc. 4.9% 0.8%
Cisco Systmes, Inc. 3.9% 3.9%
Citigroup, Inc. 3.8% 3.6%
General Electric Co. 3.8% 5.1%
Intel Corp. 3.7% 2.7%
Microsoft Corp. 3.4% 6.2%
Exxon Mobil Corp. 2.2% 1.2%
Bristol-Myers Squibb Co. 2.2% 1.4%
Oracle Corp. 2.2% 1.7%
International Business Machines Corp. 1.7% 1.8%
Average Annual Total Returns*
Growth & Income S&P 500. MorningStar
Fund Index Peer Group+
YTD** -0.44% -0.42% 1.43%
1 Year 3.77 7.25 11.29
3 Years 18.78 19.68 19.64
5 Years 21.74 23.81 22.74
10 Years 17.03 17.79 17.03
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 33.6% Consumer Cyclical 5.5%
Health Care 14.5% Utility 5.3%
Financial 13.3% Energy 4.7%
Capital Equipment 10.1% Consumer Staple 2.3%
Retail 5.6% Basic Material 2.2%
* Total returns are for the period ended June 30, 2000. 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.
** Year-to-date total returns are not annualized.
. "Standard & Poor's 500" is a trademark of the McGraw-Hill Companies, Inc.
and has been licensed for use by John Hancock Life Insurance Company. The
product is not sponsored, endorsed, fold 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a
Large Blend investment style.
2
<PAGE>
Inception: May 1, 1996
Equity Index Fund
State Street Global Advisors Management Team
The S&P 500 rebounded with a positive return of 2.47% for the month of June,
partially offsetting negative returns from April and May. For the quarter, the
Index suffered a -2.66% return and is also in negative territory, -0.42%, for
the first six months of 2000.
For the first six months of the year the portfolio performed in line with
expectations, trailing the benchmark by 0.08%. Since the inception of the fund
in May of 1997, it has returned 22.73% on an annualized basis. The portfolio
team continues to attempt to track the performance of the Index by fully
replicating the weights of the securities held in the Index. This strategy is
consistent with our long-standing policy of managing S&P 500 portfolios.
General Electric is once again the largest security weight within the Index,
accounting for 4.19% of the S&P 500. Overall, the top ten names in the Index
total 26.65% of the benchmark weight.
[GRAPH]
Historical Fund Return
Equity Index Fund S&P 500. Index
5/1/96 10,000 10,000
6/30/96 10,231 10,300
6/30/97 13,727 13,870
6/30/98 17,850 18,060
6/30/99 21,904 22,168
6/30/00 23,475 23,776
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
General Electric Co. 4.1% 3.7%
Intel Corp. 3.5% 2.0%
Cisco Systems, Inc. 3.4% 2.6%
Microsoft Corp. 3.3% 4.4%
Pfizer, Inc. 2.3% 0.9%
Aim Stic Prime Fund 2.2% 2.2%
Exxon Mobil Corp. 2.1% 2.0%
Wal-Mart Stores, Inc. 2.0% 2.2%
Oracle Corp. 1.8% 1.2%
Citigroup, Inc. 1.6% 1.4%
Average Annual Total Returns*
Equity Index S&P 500. MorningStar
Fund(1) Index Peer Group+
YTD** -0.50% -0.42% 1.43%
1 Year 7.17 7.25 11.29
3 Years 19.58 19.68 19.64
Since Inception (5/1/96) 22.73 23.10 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 33.6% Retail 5.5%
Financial 15.1% Energy 5.3%
Health Care 11.3% Consumer Staple 5.3%
Capital Equipment 8.8% Consumer Cyclical 5.3%
Utility 6.5% Basic Material 1.9%
(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 $250,000 in 1997.
* Total returns are for the period ended June 30, 2000. 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.
. "Standard & Poor's 500" is a trademark of The McGraw-Hill Companies, Inc.
and has been licensed for use by John Hancock 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all the variable annuity and
life sub-accounts within the Morningstar variable universe having a Large
Blend investment style.
** Year-to-date total returns are not annualized.
3
<PAGE>
Inception: May 1, 1996
Large Cap Value Fund
T. Rowe Price Associates, Inc. Brian C. Rogers
Following a sharp advance during the first quarter of 2000, domestic stocks
stumbled badly in April, then spent the past two months trying to recover. The
Fed hiked short-term rates three times in the first half, for a total of six
times since June 1999, which eventually took its toll on most sectors of the
market. The equity income group rallied somewhat after a long period of
stagnation, but still finished in negative territory.
Fund performance reflected the overall weakness with a small loss in the face
of a major sell-off in the so-called New Economy sectors. The fund's
underweighting in technology spared it from further damage during the
challenging first six months of 2000.
<TABLE>
<CAPTION>
TOTAL RETURNS
FOR PERIODS
ENDED 6/30/00
---------------
6 MONTHS 1 YEAR
-----------------------------------------
<S> <C> <C>
Large Cap Value Fund -2.32% -9.99%
-----------------------------------------
Russell 1000 Value Index -4.23% -8.92%
-----------------------------------------
</TABLE>
As mentioned in previous reports, value stocks had been selling at the
greatest price/earnings discount to the general market in 25 years. The major
contributors to positive performance were Baker Hughes, up 53%; American Home
Products, up 50%; Pharmacia, up 46%; Starwood Hotels & Resorts, up 40%;
Reader's Digest, up 36%; and Disney, up 33%. There were laggards as well.
Among them were Unisys and BMC Software, each off 54% for the six-month
period; Armstrong World, down 51%; Hercules, down 48%; Proctor & Gamble, off
47%; and International Paper, down 46%. The fund remained well-diversified
among industries, with 21% of assets in consumer nondurables, 17% in financial
stocks, 14% in energy, 14% in utilities, and the rest scattered across other
industrial sectors. We made several purchases in the first half as their
valuations became more attractive, including Vodafone AirTouch, Rockwell
International, Motorola, Unisys, Microsoft, and BMC Software.
We believe further rate hikes may be possible in coming months. However,
there are signs of slowing in economic growth and the Fed could be nearing the
end of its tightening cycle. The purpose of the higher rates is to slow the
economy from its robust pace of the past few quarters and constrain inflation
within acceptable bounds. We think these efforts will succeed without pushing
the economy into a recession. As investors anticipate more favorable trends on
inflation and interest rates, we expect moderate returns through the rest of
the year for domestic stocks, including the equity income sector of the
market.
[GRAPH]
Historcal Fund Return
Russell 1000
Value Index Large Cap Value Fund
5/1/96 10,000 10,000
6/30/96 10,133 10,255
6/30/97 13,496 13,059
6/30/98 17,388 15,561
6/30/99 20,235 17,932
6/30/00 18,430 16,140
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
BP Amoco plc 3.1% 1.7%
Exxon Mobil Corp. 2.7% 3.2%
Mellon Financial Corp. 2.4% 1.7%
SBC Communications, Inc. 2.2% 1.8%
American Home Products Corp. 2.1% 1.6%
General Mills, Inc. 2.1% 1.4%
Chevron Corp. 1.7% 1.4%
Pharmacia Corp. 1.7% N/A
Texaco, Inc. 1.7% 1.2%
GTE Corp. 1.6% 1.6%
Average Annual Total Returns*
Large Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
YTD** -2.32% -4.23% -1.58%
1 Year -9.99 -8.92 -5.24
3 Years 7.32 10.94 9.11
Since Inception (5/1/96) 12.17 15.80 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Financial 17.3% Capital Equipment 7.8%
Energy 14.2% Basic Material 7.0%
Utility 13.3% Health Care 6.5%
Consumer Staple 11.5% Technology 4.9%
Consumer Cyclical 8.8% Transportation 1.8%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a Large
Value investment style.
** Year-to-date total returns are not annualized.
4
<PAGE>
Inception: August 31, 1999
Large Cap Value Core Fund
Goldman Sachs Asset Management Clark/Jones/Pinter
For the quarter ended June 30, 2000, the Large Cap Value CORE Fund returned -
4.14% at net asset value, outperforming its benchmark, the Russell 1000 Value
Index, which returned -4.69%.
When managing the Fund, we do not take size or sector bets. Our quantitative
process seeks out stocks with good momentum that also appear to be good values.
We prefer stocks favored by fundamental research analysts, and less volatile
stocks with lower-than-average probability of reporting disappointing earnings.
Over the long term, these four investment themes (Growth/Momentum, Value,
Stability and Research) have led to excess returns, although they typically do
not all work well simultaneously. During the second quarter, returns were
driven by different CORE themes each month. For instance, the Value theme fared
well among Russell 1000 Value stocks in April, but fared poorly in May and
June. Our Momentum and Stability themes fared poorly in both April and May,
then rallied to contribute positively in June. Finally, our Research theme
fared well in April, then detracted from returns in May and June.
The swings from record low to record high monthly returns for our CORE themes
reflects the high level of market volatility experienced during the quarter.
Return dispersion--the spread between the best- and worst-performing stocks--
reached at least a twenty-year high in June, after being near record levels
year to date.
Industry exposures also contributed positively to returns during the quarter,
largely driven by a small overweight in pharmaceuticals.
No significant changes to the Fund's investment strategy occurred in the
second quarter. However, we continually evaluate the effectiveness of the
process, and, as we find new features which we believe will add to the Fund's
performance, we may add these to the Fund's investment process and strategy. We
intend to maintain our disciplined, long-term approach to equity investing
despite possible continued volatility in the U.S. equity markets throughout the
remainder of 2000. In fact, we believe that careful risk management such as
that which defines the CORE process is of paramount importance in such a
volatile environment, when small bets can have much larger than expected
consequences. Through our combined qualitative and quantitative strategy for
selecting stocks, we believe we have the potential to generate solid long-term
returns for the shareholders of the Fund.
[GRAPH]
Historical Fund Return
Large Cap Value Russell 1000
Core Fund Value Index
8/31/99 10,001 10,000
9/30/99 9,711 9,650
10/31/99 10,332 10,206
11/30/99 10,222 10,126
12/31/99 10,358 10,175
1/31/00 9,967 9,843
2/29/00 9,306 9,112
3/31/00 10,354 10,223
4/30/00 10,236 10,104
5/31/00 10,315 10,211
6/30/00 9,925 9,744
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Citigroup, Inc. 4.7% 2.2%
Exxon Mobil Corp. 4.6% 3.5%
SBC Communications, Inc. 2.2% 1.7%
The Walt Disney Co. 2.0% 0.3%
BellSouth Corp. 2.0% 0.8%
American International
Group, Inc. 1.9% 1.4%
AT&T Corp. 1.9% 2.4%
Bell Atlantic Corp. 1.8% 0.9%
Bank of America Corp. 1.7% 1.4%
General Motors Corp. 1.6% 0.3%
Average Annual Total Returns*
Large Cap Russell 1000 MorningStar
Value CORE Fund Value Index Peer Group+
YTD** -4.18% -4.23% -1.58%
Since Inception (8/31/99) -0.89 -3.06% N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Financial 28.0% Capital Equipment 6.1%
Utility 13.8% Health Care 4.3%
Energy 11.7% Basic Material 4.1%
Consumer Cyclical 10.3% Consumer Staple 3.9%
Technology 7.8% Retail 1.8%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Large Value
investment style.
** Year-to-date total returns are not annualized.
5
<PAGE>
Inception: June 30, 2000
American Leader's Large Cap Value Fund
Federated Investment Management Company M. Donnelly/K. McCloskey
The American Leaders Large Cap Value Fund commenced investment operations on
June 30, 2000, and the Fund was invested in short-term United States
Treasuries as of the market close on that date. The Fund was fully invested in
equities on July 3, 2000. The Fund seeks to identify large, leading companies
that are trading at significant discounts to their inherent franchise values.
To accomplish this goal, the Fund utilizes a proprietary valuation model and
conducts rigorous qualitative analysis of the fundamentals of each company
before a purchase decision is made. The Fund seeks to outperform the Russell
1000 Value Index and the S&P/Barra Value Index on an annual basis. The Fund
also seeks to outperform the S&P 500 Index over a full market cycle.
6
<PAGE>
Inception: March 29, 1986
Large Cap Growth Fund
Independence Investment Associates, Inc. Mark Lapman
The Large Cap Growth Fund returned -1.51% in the second quarter of 2000,
exceeding the Russell 1000 Growth index return of -2.70%. The market rotation
out of overpriced hyper-growth stocks into securities with an attractive
combination of cheapness and improving fundamentals continued into the second
quarter. Since the broadening began in March, your fund has outperformed its
benchmark by over 4%. Investors witnessed a rotation out of premium priced
technology, telecom and biotech stocks into undervalued securities in sectors
with solid earnings prospects, such as pharmaceuticals, energy and financials.
Investments that outperformed include Warner-Lambert, El Paso Energy and
American General. Previous winners in telecom and computer software were weak,
and retailers such as Gap and Circuit City were crushed as higher interest
rates caused investors to worry about a potential reduction in consumer
spending. Investors now need to be choosy in the technology companies that
they hold, focusing on those that are fundamentally sound, with innovative
products, earnings growth and strong management. We believe stocks such as
Veritas, Oracle, and Cisco meet all of these criteria, and thus we hold them
in your fund.
It is clear that after six interest rate hikes, U.S. economic growth will
moderate. With higher than expected initial jobless claims, weakening retails
sales and slowing housing starts, consumer confidence is beginning to erode,
albeit from a high level. Although we believe that the Fed will be successful
in achieving a soft landing, we expect the stock market to remain volatile as
investors struggle to assess the outcome. Stock selection will be especially
important during this period of uncertainty. With our stock selection skill,
valuation discipline and emphasis on diversification, we are extremely well
positioned to add value in this environment.
[GRAPH]
Historical Fund Return
Large Cap Growth Fund Large Cap Growth Benchmark(1)
6/30/90 10,000 10,000
6/30/91 11,658 10,739
6/30/92 12,897 12,185
6/30/93 14,940 13,840
6/30/94 15,417 14,026
6/30/95 18,386 17,677
6/30/96 22,617 22,418
6/30/97 28,869 29,441
6/30/98 39,523 38,678
6/30/99 49,748 49,227
6/30/00 58,852 61,861
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Cisco Systems, Inc. 7.1% 5.9%
Intel Corp. 6.2% 4.1%
General Electric Co. 6.1% 4.5%
Microsoft Corp. 3.8% 6.2%
Oracle Corp. 3.3% 2.8%
Pfizer, Inc. 3.2% 1.6%
EMC Corp. 2.5% 0.8%
Sun Microsystems, Inc. 2.4% 0.8%
Lucent Technologies, Inc. 2.1% 2.9%
International Business
Machines Corp. 2.1% 1.8%
Average Annual Total Returns*
Large Cap Large Cap Growth MorningStar
Growth Fund Benchmark (1) Peer Group+
YTD** 5.71% 4.24% 3.04%
1 Year 18.30 25.66 34.84
3 Years 26.80 28.08 31.54
5 Years 26.20 28.47 27.68
10 Years 19.39 19.99 19.48
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 61.0% Financial 4.2%
Health Care 12.6% Consumer Cyclical 3.6%
Capital Equipment 9.7% Energy 0.2%
Retail 6.1%
(1) The benchmark 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 present.
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Large Cap
Growth investment style. Prior to May 1996 (concurrent with the Fund's
strategy change), the peer group represents the Large Blend investment
style.
** Year-to-date total returns are not annualized.
7
<PAGE>
Inception: August 31, 1999
Large Cap Aggressive Growth Fund
Alliance Capital Management L.P. J. Fogarty/A. Harrison
For the six months ending June 30, 2000, the Fund returned 2.22% compared to
the S&P 500 Index return of -0.4% and the Russell 1000 Growth Index return of
4.2%. The outperformance compared to the broad S&P 500 was due to solid stock
selection specifically in technology and healthcare. Within technology,
communications equipment, software and semiconductor makers continued to
report robust earnings growth. Healthcare experienced strong gains as
investors seeking protection from the market turbulence during April and May
were drawn to stable earnings growth, attractive relative valuations and a
perception that the political climate remains positive for the rest of the
year. The Series modestly underperformed the Russell 1000 Growth Index due to
its underweight in technology stocks, which comprised approximately 40% of the
portfolio, compared to almost 60% for the Index.
We maintain a positive view about the industry dominant, high growth
companies in the portfolio that are growing their earnings on average more
than 20% which compares favorably to the earnings growth rate for the average
S&P 500 company of 10-12%. The correction in technology stocks that saw the
NASDAQ fall over 20% from its record March high through the end of June has
had the beneficial effect of deflating the speculative bubble in the stock
market. However, there still exists a valuation gap between most technology
stocks and the rest of the market specifically financials and basic materials
stocks. This valuation gap coupled with an economic landscape that is unclear
is likely to lead to continued volatility in the market which we will take
advantage of by actively trading our core holdings to add incremental return.
Balancing our positive view of economic and earnings fundamentals with a
cautious view on valuations, the Fund remains broadly diversified with
technology, consumer services, financials and healthcare the areas of
emphasis.
[GRAPH]
Historical Fund Return
Large Cap Russell 1000
Aggressive Growth Fund Growth Index
8/31/99 10,000 10,000
9/30/99 9,948 9,790
10/31/99 10,811 10,529
11/30/99 11,047 11,098
12/31/99 12,018 12,252
1/31/00 11,465 11,677
2/29/00 11,569 12,248
3/31/00 12,833 13,125
4/30/00 12,364 12,501
5/31/00 11,692 11,871
6/30/00 12,284 12,771
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Nokia Oyj 6.2% 3.7%
Tyco International, Ltd. 6.0% 2.6%
Intel Corp. 5.4% 2.8%
Pfizer, Inc. 5.2% 0.9%
Cisco Systems, Inc. 4.5% 2.9%
Applied Materials, Inc. 4.4% 1.1%
Citigroup, Inc. 3.8% 1.9%
AT&T Corp. - Liberty Media
Group 3.7% 2.4%
Microsoft Corp. 3.3% 2.9%
Schering-Plough Corp. 3.1% 1.9%
Average Annual Total Returns*
Large Cap Aggressive Russell 1000 MorningStar
Growth Fund Growth Index Peer Group+
YTD** 2.22% 4.24% 3.04%
Since Inception (8/31/99) 28.02% 34.11 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 45.7% Retail 6.8%
Financial 11.2% Utility 2.8%
Health Care 10.1% Consumer Staple 1.4%
Consumer Cyclical 9.8% Governmental 1.1%
Capital Equipment 9.6%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the Morningstar variable universe having a Large
Growth investment.
** Year-to-date total returns are not annualized.
8
<PAGE>
Inception: August 31, 1999
Large/Mid Cap Value Fund
Wellington Management Company, LLP D. Chu/L. Gabriel
During the second quarter, the Large/Mid Cap Value Fund decreased -5.65%,
underperforming the Fund's benchmark, the Russell 1000 Value Index, which fell
-4.7% for the quarter ended June 30, 2000. Since Inception, on September 1,
1999, the Fund has returned 2.2%, compared to a -2.6% return by the benchmark.
The second quarter of 2000 was characterized by weak results in global equity
markets. The modest second quarter returns of most US equity indices masked the
level of volatility present during the second quarter. The Russell 1000 Value
Index outperformed the Russell 1000 Growth Index (by roughly 350 basis points
in April and 350 basis points in May), but the momentum reversed in June and
the Value index underperformed the Growth index.
During the quarter, the Fund's sector weights were kept closely in line with
those of the Russell 1000 Value Index. The sectors in the Fund that added the
most value were information technology, health care, and industrial and
commercial. On the negative side, stock selection within information and
entertainment, utilities, and finance hurt performance.
Some of the Fund's largest contributors through stock selection during the
quarter include: Cigna which was the Fund's top performer, First Data, which
showed strong earnings growth during the quarter, and Convergys which was a
strong performer in the industrial and commercial sector.
As we begin the third quarter of 2000, we continue to believe that broad
diversification across economic sectors is a central tenet of the investment
strategy. We anticipate further rate hikes by the Federal Reserve in order to
slow the US economy. In a tightening interest rate environment, we remain
bullish on the outlook for the large-cap value sector going forward. We will
continue to look for opportunities in large cap stocks that represent value
through active fund management.
[GRAPH]
Historical Fund Return
Large/Mid Cap Russell 1000
Value Fund Value Index
8/31/99 10,000 10,000
9/30/99 9,787 9,650
10/31/99 10,352 10,206
11/30/99 10,295 10,126
12/31/99 10,472 10,175
1/31/00 10,031 9,843
2/29/00 9,614 9,112
3/31/00 10,829 10,223
4/30/00 10,445 10,104
5/31/00 10,607 10,211
6/30/00 10,218 9,744
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Citigroup, Inc. 4.1% 3.7%
Exxon Mobil Corp. 4.0% N/A
Bell Atlantic Corp. 3.4% 2.5%
Merrill Lynch & Co., Inc. 3.3% N/A
American International
Group, Inc. 2.7% 1.4%
Marsh & McLennan Cos., Inc. 2.3% 1.3%
Wachovia Corp. 2.2% 1.2%
SBC Communications, Inc. 1.8% 1.7%
Pharmacia Corp. 1.8% N/A
Cigna Corp. 1.7% 1.1%
Average Annual Total Returns*
Large/Mid Cap Russell 1000 MorningStar
Value Fund Value Index Peer Group+
YTD** -2.43% -4.23% -0.86%
Since Inception (8/31/99) 2.62 -3.06% N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Financial 28.2% Consumer Cyclical 7.2%
Utility 13.1% Consumer Staple 5.2%
Technology 9.3% Health Care 4.5%
Capital Equipment 8.6% Retail 4.4%
Energy 8.4% Basic Material 3.8%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a 50%
weighting of the Large Cap Value style and a 50% weighting of the Mid Cap
Value style.
** Year-to-date total returns are not annualized.
9
<PAGE>
Inception: May 1, 1996
Mid Cap Value Fund
Neuberger Berman, LLC Gendelman/Mullick
The Mid Cap Value Fund returned -2.48% during the second quarter of 2000,
falling just short of the Russell Midcap Value Index's return of -1.68%.
Although the fund had a difficult 2nd quarter, due in part to its poor
performing technology holdings and an uncertain economic environment, its Year
to Date total return continues to outpace the Russell Mid Cap Value Index by
over 600 basis points (5.64% vs. -0.69%).
Our Utility and Energy holdings performed well in the second quarter, spurred
on by high natural gas and crude oil prices. Top contributors from the two
sectors include the following: Anadarko Petroleum, an oil and gas exploration
and production company in the process of merging with Union Pacific Resources;
Coastal Corp., a natural gas company merging with El Paso Energy; and AES
Corp., a global independent power producer. The Financial Services sector
contributed positively to returns as a result of good stock selection and a
relatively heavy weighting in the fund. Property and casualty insurer ACE Ltd.
and student loan provider SLM Holdings both had a positive impact on returns.
Unfortunately, a few of our Technology holdings were hit hard by negative
sentiment within the sector. Comdisco was one drag on fund returns and
Parametric Technology, despite being disposed of early in the quarter, was
another. EchoStar Communications and Smurfit-Stone Container, both of which
were removed from the fund, detracted from returns.
Looking forward we remain positive about the future. We have had a strong
first half, and while technology stocks generally had a difficult second
quarter, they have recovered, and we are confident that companies with good
fundamentals will deliver long term superior performance. We feel comfortable
with the fund's overall structure and look forward to the challenges of the
second half of the year.
[GRAPH]
Historical Fund Return
Russell Mid Cap Mid Cap
Value Index Value Fund
5/1/96 10,000 10,000
6/30/96 10,107 10,095
6/30/97 12,933 13,423
6/30/98 16,261 15,464
6/30/99 17,177 15,114
6/30/00 15,820 15,190
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Metlife, Inc. 2.6% N/A
SLM Holding Corp. 2.2% 1.2%
Genzyme Corp.
(General Division) 2.1% 1.9%
AES Corp. 2.1% N/A
Tenet Healthcare Corp. 2.0% N/A
A.H. Belo Corp. 2.0% 1.8%
Starwood Hotels & Resorts
Worldwide, Inc. 1.9% 0.9%
General Dynamics Corp. 1.9% 2.1%
Ace, Ltd. 1.8% N/A
SPX Corp. 1.8% 2.1%
Average Annual Total Returns*
Mid Cap Russell Mid Cap MorningStar
Value Fund Value Index Peer Group+
YTD** 5.72% -0.69% -0.14%
1 Year 0.50 -7.90 -4.31
3 Years 4.21 6.95 7.84
Since Inception (5/1/96) 10.55 11.64 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Financial 29.2% Technology 9.2%
Capital Equipment 13.8% Transportation 4.0%
Energy 11.4% Basic Material 3.6%
Health Care 9.5% Retail 3.1%
Consumer Cyclical 9.4% Utility 2.6%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Mid Cap
Value investment style.
** Year-to-date total returns are not annualized.
10
<PAGE>
Inception: August 31, 1999
Mid Cap Blend Fund
Independence Investment Associates, Inc. Coreen Kraysler
The Mid Cap Blend Fund had a strong second quarter, returning -.28%, well
ahead of the Frank Russell Mid Cap Index return of -4.51%. Excitement
continued to mount over the possibilities of major advancements in medicine as
the human genome is sequenced. As a result, holdings in biotech and medical
technology such as Waters, Medimmune, CV Therapeutics, QLT Phototherapeutics
and Cephalon were all strong. Oil stocks, such as El Paso Energy and Anadarko
Petroleum were also strong, as rising oil prices propelled earnings higher. As
investors perceived that interest rates were peaking, financial holdings such
as Lincoln National and Aon performed well. Although technology stocks rallied
in June, the group was weak overall during the quarter as investors rotated
out of premium priced stocks into sectors with solid earnings prospects, such
as pharmaceuticals and financials. However, select technology names performed
well, with holdings in Portal Software, Convergys and Vitesse Semiconductor
producing returns well ahead of the market. In general, software and
semiconductor names were weak, and holdings in Citrix Systems and Applied
Micro Circuits underperformed. Retailers such as Circuit City were also weak
due to investors fears regarding a potential slowdown in consumer spending.
Going forward, it is clear that after six interest rate hikes, U.S. economic
growth will moderate. In fact, we have already begun to see signs of a
slowdown in some of the recently reported economic statistics, including
retail sales, housing starts and the unemployment data. We believe that the
Fed will be successful in its attempt to engineer a soft landing, and that
this environment will be favorable for the stock market. The Mid Cap Blend
Fund is well positioned to benefit from these trends.
[GRAPH]
Historical Fund Return
Mid Cap Blend Fund Russell Mid Cap Index
8/31/99 10,000 10,000
9/30/99 9,729 9,648
10/29/99 10,182 10,105
11/30/99 10,633 10,396
12/31/99 11,153 11,311
1/31/00 10,739 10,937
2/29/00 11,484 11,778
3/31/00 12,645 12,453
4/28/00 12,620 11,863
5/31/00 12,361 11,549
6/30/00 12,610 11,891
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Allergan, Inc. 1.7% 0.4%
Intuit, Inc. 1.7% 0.4%
Comerica, Inc. 1.6% 0.5%
Noble Drilling Corp. 1.6% N/A
Portal Software, Inc. 1.6% N/A
QLT PhotoTherapeutics, Inc. 1.5% 0.6%
Fiserv, Inc. 1.5% 0.5%
Bausch & Lomb, Inc. 1.5% 0.4%
Lincoln National Corp. 1.4% N/A
Aon Corp. 1.4% N/A
Average Annual Total Returns*
Mid Cap Russell Mid MorningStar
Blend Fund Cap Index Peer Group+
YTD** 13.06% 5.12% 3.93%
Since Inception (8/31/99) 32.11 23.10 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 27.8% Retail 6.3%
Health Care 11.9% Energy 6.1%
Financial 11.8% Utility 5.4%
Capital Equipment 9.5% Basic Material 4.9%
Consumer Cyclical 8.2% Transportation 4.1%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Mid Cap
Blend investment style.
** Year-to-date total returns are not annualized.
11
<PAGE>
Inception: May 1, 1996
Mid Cap Growth Fund
Janus James Goff
Strength among a number of individual stocks wasn't enough to overcome losses
related to a difficult market environment during the second quarter, and the
Fund slipped 6.69%, slightly outperforming the 7.41% loss registered by its
benchmark, the Russell MidCap Growth Index. Outstanding fundamental
performances by many of our companies allowed them to overcome an increase in
volatility to post strong gains. For example, growth in demand for SDL's
optical networking gear has been so strong that the company announced its
second-quarter earnings would outpace last year's by nearly 140%. For its
part, payroll processor Paychex once again surprised Wall Street analysts by
logging a better-than-expected 36% increase in earnings. Both companies were
among our top performers.
There were setbacks, however, including lackluster performances by several of
our telecommunications and technology stocks. Internet advertising leader
DoubleClick was caught in a sharp sell-off of technology shares that began in
March. The company also suffered from concerns about the sustainability of
advertising spending as the economy decelerates, delivering a "one-two punch"
to the stock that forced DoubleClick into the red for the period.
Looking forward, the prospect of a more stable interest rate environment is
encouraging. The first-quarter earnings season was perhaps the best showing
for our companies I have ever witnessed. We believe second-quarter earnings,
due to be released by many our holdings over the next few weeks, will be just
as healthy. If the overhang related to interest rate uncertainty has indeed
finally been lifted, our performance should reflect that strength. Meanwhile,
we will continue to search for companies capable of producing stable, long-
term growth regardless of the market environment, always leveraging the
detailed, company-level research upon which the Janus reputation is built.
[GRAPH]
Historical Fund Return
Russell Mid Cap Growth Index Mid Cap Growth Fund
5/1/96 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 9,622 9,881
9/30/96 10,233 10,473
10/31/96 10,113 10,325
11/29/96 10,709 10,408
12/31/96 10,529 10,269
1/31/97 10,994 9,994
2/28/97 10,752 9,827
3/31/97 10,145 9,079
4/30/97 10,393 9,186
5/30/97 11,325 10,176
6/30/97 11,638 10,693
7/31/97 12,752 10,907
8/29/97 12,627 10,950
9/30/97 13,266 11,734
10/31/97 12,601 11,385
11/28/97 12,734 11,547
12/31/97 12,900 11,980
1/30/98 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 14,035 13,098
6/30/98 14,432 14,211
7/31/98 13,814 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 13,777 14,295
12/31/98 15,204 16,660
1/29/99 15,660 17,539
2/26/99 14,894 16,892
3/31/99 15,724 19,064
4/30/99 16,441 20,313
5/28/99 16,229 20,063
6/30/99 17,362 21,164
7/30/99 16,810 20,863
8/31/99 16,635 21,977
9/30/99 16,493 22,828
10/29/99 17,768 26,427
11/30/99 19,609 29,295
12/31/99 23,003 36,370
1/31/00 22,999 37,510
2/29/00 27,833 44,729
3/31/00 27,861 37,361
4/28/00 25,156 32,525
5/31/00 23,323 30,325
6/30/00 25,798 34,862
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Abgenix, Inc. 2.3% N/A
American Tower Corp. 2.5% 0.6%
Andrx Corp. 1.7% N/A
Apollo Group, Inc. 2.1% 1.6%
AT&T Canada, Inc. 1.9% 1.4%
Brocade Communications
Systems, Inc. 1.3% 0.6%
Citadel Communications Corp. 0.8% 1.0%
Clearnet Communications, Inc. 0.8% 1.1%
CNET Networks, Inc. 0.9% N/A
Cox Radio, Inc. 3.1% 0.3%
Average Annual Total Returns*
Mid Cap Russell Mid Cap MorningStar
Growth Fund Growth Index Peer Group+
YTD** -4.15% 12.15% 8.81%
1 Year 64.72 48.59 51.88
3 Years 48.28 30.39 30.83
Since Inception (5/1/96) 34.94 25.54 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 44.6% Energy 1.9%
Health Care 21.6% Utility 1.1%
Consumer Cyclical 13.2% Retail 0.7%
Capital Equipment 8.6%
Financial 3.6%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Mid Cap
Growth investment style.
** Year-to-date total returns are not annualized.
12
<PAGE>
Inception: August 31, 1999
Fundamental Mid Cap Growth Fund
OppenheimerFunds, Inc. Bruce Bartlett
During the past month, several economic indicators such as retail sales,
consumer confidence and new home sales appeared to point towards a moderation
of economic activity. In addition, inflation measures remained under control
despite very tight labor markets. Finally, a sharp correction in major stock
market averages during April and May let some of the air out of what may have
been a speculative bubble and reduced the stimulative impact of the "wealth
effect" on the real economy. Given these circumstances, the Fed, which had
raised short-term rates six times over the past year in an effort to slow the
expansion, decided to take no action at its June meeting, leaving the key
Federal Funds rate unchanged at 6.5%.
Inflationary pressures and rising interest rates continued to pressure stock
multiples in May 2000. The NASDAQ was hit hardest as it was down 11.9% for the
month, while the Dow was down 2.0% and the S&P 400 was down 1.25%. Overall,
despite market volatility, company fundamentals remain strong.
During May 2000, there were no material changes in asset weightings. Cash
remains high as a result of the continued difficulty in finding companies
outside of technology and telecommunications.
Going forward, we will continue to place increased scrutiny on company
revenue growth, since revenue growth is the most sustainable source of
earnings growth. Failure to meet exceedingly high expectations may lead to
future earning disappointments.
[GRAPH]
Historical Fund Return
Fundamental Mid Cap Growth Index
8/31/99 $10,000 $10,000
9/30/99 10,000 9,915
10/31/99 10,836 10,681
11/30/99 14,468 11,788
12/31/99 15,457 13,829
1/31/00 15,972 13,826
2/29/00 22,030 16,732
3/31/00 18,801 16,749
4/30/00 16,532 15,123
5/31/00 14,461 14,021
6/30/00 18,224 15,508
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Newport Corp. 4.1% N/A
Micromuse, Inc. 3.6% 0.4%
Aether Systems, Inc. 3.2% N/A
Tiffany & Co. 2.9% 1.3%
Cooper Mountain Networks, Inc. 2.9% N/A
Rational Software Corp. 2.7% 0.3%
Bookman Technology plc 2.6% N/A
Sanmina Corp. 2.6% N/A
Mercury Interactive Corp. 2.5% 0.8%
SDL, Inc. 2.5% 1.8%
Average Annual Total Returns*
Fundamental Russell Mid-
Cap MorningStar
Mid Cap Growth Growth Index Peer Group+
YTD** 17.90% 12.15% 8.81%
Since Inception (8/31/99) 105.57 69.31 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 61.3% Utility 2.4%
Retail 7.6% Energy 2.2%
Capital Equipment 5.9% Consumer Cyclical 2.0%
Health Care 4.3% Consumer Staple 0.5%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Mid Cap
Growth investment style.
** Year-to-date total returns are not annualized.
13
<PAGE>
Inception: May 16, 1988
Real Estate Equity Fund
Independence Investment Associates, Inc. J. DeSantis/T. Spicer
MSDW Inv. Mgmt., Inc. T. Bigman/D. Funke
The market rotation out of overpriced New Economy stocks into securities with
an attractive combination of cheapness and improving fundamentals continued
into the second quarter with REIT indices experiencing double-digit returns.
The Real Estate Equity fund, with its concentration in the real estate sector,
was a beneficiary of this trend.
Even though the REIT asset class has come a long way in a relatively short
period of time, conditions are still favorable for the sector. Names continue
to trade at sizable discounts to Net Asset Value, dividend yields are still in
the 7.5% range, average earnings growth rates are a stable 10%, and a price
multiple of 8.6x is difficult to beat in this market. Investor sentiment is
definitely behind the sector with $338 million of net inflows since year-end.
Stock selection during the quarter contributed positively to performance,
while sector allocations had mixed results. Overweights in the Office,
Apartment and Diversified sectors helped performance as they outperformed the
overall index. An underweight in the Retail sector also helped performance as
it underperformed. Being underweight the Hotel sector, however, hurt
performance significantly as it outperformed the market by nearly 700 basis
points and was the main cause of the underperformance during the quarter.
Individual names that helped boost returns included Pacific Gulf Properties,
CarrAmerica, Reckson, CBL & Associates, Meristar and Boston Properties.
Going forward, we expect the stock market, including REITs, to remain volatile
as investors struggle to assess the state of the economy. Our strategy for the
near term is to be overweighted the Office and Apartment sectors and
underweighted the Hotel and Retail sectors. We will also maintain our large-
capitalization focus, as these names will be most attractive to new money
entering the sector. Stock-selection will however continue to be our main focus
and where we expect the majority of return to come from in the upcoming months.
[GRAPH]
Real Estate Equity Fund* Wihshire Real Estate Index
6/30/90 10,000 10,000
6/30/91 10,474 8,674
6/30/92 11,340 8,407
6/30/93 14,800 10,517
6/30/94 15,719 10,999
6/30/95 16,161 11,318
6/30/96 18,773 13,406
6/30/97 24,684 17,904
6/30/98 25,706 19,067
6/30/99 24,193 17,755
6/30/00 25,502 18,546
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Equity Office Properties Trust 5.9% 4.5%
Equity Residential Properties Trust 4.5% 4.7%
Avalonbay Communities, Inc. 4.3% 4.6%
Spieker Properties, Inc. 4.1% 4.3%
Post Properties, Inc. 3.5% 3.6%
Simon Property Group, Inc. 3.4% 2.5%
Duke Realty Investments, Inc. 3.4% 3.5%
Boston Properties, Inc. 3.3% N/A
Liberty Property Trust 3.2% 3.3%
Catellus Development Corp. 3.1% 2.9%
Average Annual Total Returns*
Real Estate Wilshire Real MorningStar
Equity Fund Estate Index Peer Group +
YTD*** 13.67% 15.21% 13.29%
1 Year 5.41 4.46 4.22
3 Years 1.09 1.18 2.02
5 Years 9.55 10.38 10.00
10 Years 9.81 6.37 9.92
Top Industries (as of June 30, 2000)
% of
investments
Real Estate Investment Trust 92.6%
Reat Estate Development 3.1%
Real Estate Operations 1.9%
* Effective June 30th, the Fund was modified to a multi-managed investment
approach.
** Total returns are for the period ended June 30, 2000. 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.
+ Source: MorningStar, Inc. Data as of 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Speciality
Real Estate investment.
** Year-to-date total returns are not annualized.
14
<PAGE>
Inception: August 31, 1999
Small/Mid Cap Value Fund
The Boston Company Asset Management, LLC Peter I. Higgins
After a very strong first quarter, the smaller capitalization market was down
slightly in the second quarter as measured by the Russell 2500 Value Index.
The Small/Mid Cap Value Fund had a positive quarter; up 4.37% while the
Russell 2500 Value Index was down 0.60%. Year-to-date the Fund is up 18.14%
while the Russell 2500 Value is up 4.05%. The Small/Mid Cap Value Fund was up
4.16% for the second quarter.
Our holdings in the energy, financial services and capital goods sectors were
up nicely and outperformed their respective sectors in the index. Our energy
holdings, with emphasis on natural gas exploration and production and energy
service companies, were again a successful strategy. In the financial services
area our focus is on diversified insurance and investment services
organizations. We have continued to underweight banks as higher interest rates
and loan loss concerns have negatively impacted the group. Our capital goods
holdings are broadly diversified with representation in industrial,
agricultural and defense equipment industries as well as environmental
services and related areas.
Our technology holdings were down slightly for the quarter but did better
than the technology sector of the index. Our investments here include holdings
in database and engineering software, computer component manufacturers,
electronics distribution companies as well as computer service companies. We
continue to emphasize the group as the stocks represent good value and growth
prospects appear favorable.
Sectors that did not do well include basic industries, consumer services, and
selected health care companies. In general these stocks underperformed due to
disappointing earnings and slowing growth expectations.
Going forward, global economic growth should continue to be positive. We
believe that the portfolio is well positioned and we do not anticipate a
significant change in our economic sector weighting for the coming quarter.
[GRAPH]
Historical Fund Return
Small/Mid Cap Value Fund Russell 2500 Value Index
Aug-31-99 10,001 10,000
Sep-30-99 9,560 9,685
Oct-31-99 9,443 9,695
Nov-30-99 9,942 9,748
Dec-31-99 10,508 10,080
Jan-31-00 9,756 9,661
Feb-29-00 9,775 9,828
Mar-31-00 11,918 10,552
Apr-30-00 12,266 10,548
May-31-00 12,275 10,528
Jun-30-00 12,414 10,489
Top Ten Holdings (as of June 30, 2000)
------------------------------------------------------------------------------
six months ago
% of % of
Investments Investments
Parametric Technology Corp. 2.6% N/A
Tidewater, Inc. 2.3% N/A
McKesson HBOC, Inc. 2.2% 0.8%
Avnet, Inc. 2.2% 0.6%
Informix Corp. 2.2% N/A
Fluor Corp. 2.0% 1.2%
Adaptec, Inc. 2.0% N/A
NCR Corp. 1.9% N/A
H & R Block, Inc. 1.9% N/A
Jones Apparel Group, Inc. 1.8% 1.1%
Average Annual Total Returns*
------------------------------------------------------------------------------
Small/Mid Cap Russell 2500 MorningStar
Value Fund Value Index Peer Group+
---------- ----------- -----------
YTD** 18.14% 4.05% 2.56%
Since Inception (8/31/99) 29.65 5.89 N/A
Top Ten Sector (as of June 30, 2000)
------------------------------------------------------------------------------
% of
Investments
Technology 28.0%
Financial 13.2%
Energy 12.7%
Basic Material 11.0%
Capital Equipment 8.8%
Retail 7.9%
Consumer Cyclical 7.4%
Health Care 3.9%
Transportation 2.2%
Consumer Staple 0.5%
* Total returns are for the period ended June 30, 2000. Returns represent
past performance, assume reinvestments 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and
life sub-accounts within the MorningStar variable universe having a 50%
weighting of the Mid Cap Value style and a 50% weighting of the Small Cap
Value style.
** 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, 2000, the Small/Mid Cap CORE Fund returned -
2.44% at net asset value, outperforming its benchmark, the Russell 2500 Index,
which returned -4.00%.
When managing the Fund, we do not take size or sector bets. Our quantitative
process seeks out stocks with good momentum that also appear to be good
values. We prefer stocks favored by fundamental research analysts, and less
volatile stocks with lower-than-average probability of reporting disappointing
earnings. Over the long term, these four investment themes (Growth/Momentum,
Value, Stability and Research) led to excess returns, although they typically
do not all work well simultaneously. For instance, during the second quarter,
both our Value and Momentum themes contributed positively to returns. Notably,
Value's strength was a result of strength in the first two months of the
quarter, whereas Momentum fared best April and June. Our Stability theme had
its worst month ever among small/mid capitalization stocks in April, but
rallied to one of its best months ever in June. Only our Research theme failed
to produce results in line with our expectations each month of the quarter.
No significant changes to the Fund's investment strategy occurred in the
second quarter. However, we continually evaluate the effectiveness of the
process, and, as we find new features which we believe will add to the Fund's
performance, we may add these to the Fund's investment process and strategy.
We intend to maintain our disciplined, long-term approach to equity investing
despite possible continued volatility in the U.S. equity markets throughout
the remainder of 2000. In fact, we believe that careful risk management such
as that which defines the CORE process is of paramount importance in such a
volatile environment, when small bets can have much larger than expected
consequences. We continue to believe that through our combined qualitative and
quantitative strategy for selecting stocks, we have the potential to generate
solid long-term returns for the shareholders of the Fund.
[GRAPH]
Small/Mid Cap Core Fund Russell 2500 Index
5/1/98 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
7/30/99 9,648 9,860
8/31/99 9,347 9,552
9/30/99 9,224 9,409
10/29/99 9,430 9,616
11/30/99 9,887 10,158
12/31/99 10,871 11,262
1/31/00 10,456 11,003
2/29/00 11,807 12,592
3/31/00 11,700 12,399
4/28/00 11,257 11,732
5/31/00 10,720 11,169
6/30/00 11,414 11,903
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
PMC-Sierra, Inc. 1.2% 0.2%
CIENA Corp. 1.1% 0.2%
Network Appliance, Inc. 1.1% 0.2%
VeriSign, Inc. 0.9% 0.5%
SDL, Inc. 0.9% 0.1%
Exodus Communications, Inc. 0.8% 0.5%
BEA Systems, Inc. 0.8% 0.4%
MedImmune, Inc. 0.7% 0.2%
Dynegy, Inc. 0.7% N/A
Advanced Micro Devices, Inc. 0.7% 0.1%
Average Annual Total Returns*
Small/Mid Cap Russell 2500 MorningStar
CORE Fund Index Peer Group+
YTD** 5.00% 5.69% 5.21%
1 Year 16.35 18.84 13.63%
Since Inception (5/1/98) 6.29 8.37 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 35.0% Energy 6.6%
Financial 15.3% Utility 4.2%
Capital Equipment 10.6% Retail 3.3%
Health Care 10.2% Basic Material 3.2%
Consumer Cyclical 8.1% Consumer Staple 2.2%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable
universe. The peer group represents a 50% weighting of the Mid-Cap Blend
style and a 50% weighting of the Small-Cap Blend style for periods since
May 1999.
** 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
For the quarter, Small/Mid-Cap Growth Fund showed modest positive returns,
rising 1.4% compared with the Russell 2500 Growth Index which fell by 4.5%.
Year-to-date, the Fund is up 8.6% versus 7.2% for the index.
We increased or added to positions in several Internet, software,
communications equipment, and semiconductor-related companies. Health care and
energy sectors also received attention with increased positions or new
holdings.
With the economy slowing and interest rate trends uncertain, the quarter
witnessed reductions in the consumer discretionary and finance sectors. Slow
growth and a volatile equity market (with an expected downward bias) leaves us
comfortable with a higher than normal cash positioning although we expect to
work these reserves back into the market as prices warrant.
While the Fund is now more represented in some of the faster growing areas of
technology, our long standing strategy is not designed to fully participate in
markets such as occurred during the second half of 1999 through the first
months of 2000. If the markets revert to valuation/profitability standards
that existed prior to twelve months ago, the Fund should continue to rapidly
make up the past relative performance shortfalls. Our reading now is that, at
least for the next several months, the markets will remain skeptical and
relatively sensitive to over-valuation concerns.
The extent of the economic slowdown and its impact on corporate profits will
displace the focus on inflation and interest rates that has consumed the
markets during the past year. While we don't expect recession worries to
surface, there will be increasing concern about the growth rate of corporate
profits. This environment, should it develop, would be beneficial to our
strategy, which remains focused on companies with relatively predictable, non
cyclical, growth dynamics.
[GRAPH]
Historical Fund Return
Small/Mid Cap Growth Fund Small/Mid Cap Growth Benchmark(1)
5/1/94 10,000 10,000
6/30/94 10,043 9,584
6/30/95 11,652 12,116
6/28/96 16,237 14,974
6/30/97 16,713 17,611
6/30/98 20,389 21,838
6/30/99 21,478 26,912
6/30/00 22,219 38,807
Top Ten Holdings (as of June 30, 2000)
--------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Littelfuse, Inc. 2.6% 2.0%
Reinsurance Group of America 2.5% 2.5%
Genzyme Corp. (General Division) 2.5% 2.4%
Dallas Semiconductor Corp. 2.4% 3.1%
Rational Software Corp. 2.3% N/A
Herman Miller, Inc. 2.2% 2.2%
United Rentals, Inc. 2.2% 2.4%
ALZA Corp. 2.0% 0.9%
Beringer Wine Estates Holdings 1.8% 3.0%
G & K Services, Inc. 1.8% 2.4%
Average Annual Total Returns*
Small/Mid Small/Mid Cap MorningStar
Cap Growth Fund Growth Benchmark (1) Peer Group+
YTD** 8.56% 7.18% 7.46%
1 Year 3.45% 44.20 6.50
3 Years 9.96 30.13 32.16
5 Years 13.78 26.22 25.47
Since Inception (5/1/94) 13.85 24.59 N/A
Top Ten Sectors (as of June 30, 2000)
--------------------------------------------------------------------------------
% of % of
Investments Investments
Technology 38.7% Retail 4.3%
Capital Equipment 15.1% Energy 3.8%
Health Care 10.0% Consumer Staple 3.3%
Consumer Cyclical 7.7% Utility 2.8%
Financial 7.5% Basic Material 2.4%
(1) The Small/Mid Cap Growth Fund benchmark is the Russell Mid Cap Growth Index
from May 1994 to April 1999 and the Russell 2500 Growth Index May
1999-present.
* Total returns are for the period ended June 30, 2000, 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Mid Cap Growth and a Small-Cap Growth investment style. The peer
group represents a 50% weighting of the Mid Cap Growth style and a 50%
weighting of the Small Cap Growth style. Prior to May 1999, the peer group
represents the Mid Cap Growth investment style.
** Year-to-date total returns are not annualized.
17
<PAGE>
Inception: May 1, 1996
Small Cap Value Fund
INVESCO Inc. J. Lefkowitz/D. Kostyk
For the 2nd Quarter of 2000 the Small Cap Value Fund had a return of 1.32%,
trailing the Russell 2000 Value Index's return of 1.95%. The Fund outperformed
the benchmark in April and May, primarily due to the strong results of our
stock selection model. During this period the emphasis of stocks with lower
price/earnings ratios, improving earnings estimates, good relative price action
and strong institutional interest all made significant contributions to the
Fund's positive excess return. In June, however, the market shifted back to
favoring more volatile, growth-oriented stocks, and our stock selection
disciplines were less effective. Only stocks with good relative price action
made a significant contribution, while the more value-oriented stock selection
tools detracted from performance.
Despite losses in April and May, Health Care stocks rebounded in June to
finish the quarter as the top performing small cap sector. Two of the biggest
contributors to the Fund's performance for the Quarter were in that sector--
Alpharma, Inc. and Bindley Western Industries. In the Technology sector,
Elantec Semiconductor, which has been strong throughout the year, and Three
Five Systems, contributed to the Fund's return. Underperformers for the quarter
included Imperial Bancorp, Hooper Holmes and Micros Systems.
Turnover in the Fund was higher than usual in June due to the unprecedented
turnover in the Russell 2000 Value Index that occurred at the end of the month.
A total of 510 stocks (40% of the 1,292 names that now make up the index) were
added to the index while 374 were removed. The most notable impact of these
changes were declines in the weightings of the Technology and Energy sectors by
7% and 4%, respectively. Consumer Cyclicals had the largest increase of
slightly more than 5%. These changes are reflected in the Fund's sector
allocation as of June 30th.
[GRAPH]
Small Cap Value Benchmark(1) Small Cap Value Fund
5/1/96 10,000 10,000
6/28/96 10,051 10,126
6/30/97 12,284 12,513
6/30/98 14,519 14,450
6/30/99 14,215 13,622
6/30/00 14,051 12,733
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Selective Insurance Group 1.0% 1.0%
Lear Corp. 1.0% N/A
East West Bancorp, Inc. 1.0% 0.6%
Idacorp, Inc. 1.0% 0.9%
Capital Automotive REIT 1.0% 0.9%
Silicon Valley Bancshares 1.0% 1.0%
Cummins Engine Company, Inc. 0.9% N/A
Universal Health Services, Inc. 0.9% N/A
Zale Corp. 0.9% 0.5%
FelCor Lodging Trust, Inc. 0.9% 0.9%
Average Annual Total Returns*
Small Cap Small Cap Value MorningStar
Value Fund Benchmark (1) Peer Group+
YTD** 1.19% 5.84% 5.26%
1 Year -6.53 -1.16 1.72
3 Years 0.58 4.58 2.32
Since Inception (5/1/96) 5.97 8.50 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Financial 30.2% Retail 5.8%
Capital Equipment 11.2% Utility 5.4%
Consumer Cyclical 11.1% Consumer Staple 4.7%
Basic Material 9.4% Health Care 4.3%
Technology 8.2% Energy 4.2%
(1) The Small Cap Value Benchmark is the Russell 2000 from May 1996 to
September 1999 and the Russell 2000 Value Index October 1999-present.
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Small Value investment style.
** Year-to-date total returns are not annualized.
18
<PAGE>
Inception: May 1, 1996
Small Cap Growth Fund
John Hancock Advisers, Inc. Bernice Behar
During the volatile second quarter, the Fed raised rates 50 basis points,
while investors shifted to value stocks and then rotated back to growth
investments. The initial shift resulted from data suggesting the U.S. economy
was slowing and interest rates would continue to rise. Growth stocks had
enjoyed a sizable rally in the first quarter, causing their valuations to
reach excessive levels. Investors worried a slowdown would erode corporate
profits and questioned their expensive prices. After leading the market,
growth stocks sold off.
Investors revisited growth investments on indications the economy was growing
moderately and inflation was under control. Although equities surged in June,
net performance was negative. The S&P 500, Dow Jones Industrial Average,
Russell 2000, and Nasdaq each declined. The Fund and the Russell 2000 Growth
Index also fell, returning (8.43)% and (7.4)%, respectively.
Individual security disappointments contributed substantially to the
portfolio's underperformance. Triangle Pharamaceuticals declined sharply after
it ceased clinical trials of its leading product. Three technology stocks
Bindview, Official Payments, and Orckit Communications decreased on
disappointing earnings. After analyzing their fundamental outlook, we
concluded each setback would persist and eliminated these stocks. We made an
exception for Bindview. The company scheduled a new product launch for early
second quarter, an event we believed would support its stock price.
Fortunately, we were rewarded to our decision when the stock rebounded off its
low.
During the market volatility we restructured some of our holdings in the
Health Care sector. Our first action was to increase our allocations to the
rapidly growing biotechnology industry by augmenting positions in companies
with products in later stages of development. Companies with earlier stage
products and more distant earnings visibility were eliminated. We also
maintained positions in research and development companies and purchased those
supplying specialized products used in the discovery process.
[GRAPH]
Russell 2000 Growth Index Small Cap Growth Fund
5/1/96 10,000 10,000
6/28/96 9,830 10,294
6/30/97 10,281 10,514
6/30/98 11,639 12,366
6/30/99 12,606 14,903
6/30/00 16,185 23,398
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
CV Therapeutics, Inc. 1.4% 0.6%
Exar, Corp. 1.3% N/A
Tech Data Corp. 1.2% 0.2%
PLX Technology, Inc. 1.2% 0.5%
Virata, Corp. 1.2% 0.0%
Forrester Research, Inc. 1.2% 0.8%
COR Therapeutics, Inc. 1.2% N/A
Elantec Semiconductor, Inc. 1.1% N/A
NPS Pharmaceuticals, Inc. 1.1% N/A
SBA Communications Corp. 1.1% N/A
Average Annual Total Returns*
Small Cap Russell 2000 MorningStar
Growth Fund Growth Index Peer Group+
YTD** 5.50% 1.23% 6.11%
1 Year 57.00 28.39 54.46
3 Years 30.56 16.33 24.92
Since Inception (5/1/96) 22.63 12.25 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 43.6% Financial 6.0%
Health Care 18.8% Capital Equipment 5.7%
Energy 7.2% Basic Material 1.8%
Consumer Cyclical 6.9% Transportation 1.1%
Retail 6.3%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Small Growth investment style.
** Year-to-date total returns are not annualized.
19
<PAGE>
Inception: May 1, 1998
International Opportunities II Fund
(formerly Global Equity Fund)
Rowe Price--Fleming International, Inc. John Ford
Rowe Price-Fleming assumed management of the Fund as the new sub-adviser
effective June 13, 2000 and the Fund was renamed to International Opportunities
II Fund. The Fund will be managed in a similar fashion as the International
Opportunities Fund.
International markets declined in the second quarter, wiping out their year-
to-date gains. After leading for several quarters, telecom, media, and
technology stocks retreated. Consumer staples, health care, and energy stocks
led for most of the period. Tech and telecom stocks returned to favor in June,
and markets rallied broadly for the first time in many months. Concerns about
interest rates and U.S. market volatility hurt international markets,
particularly in the Pacific ex-Japan and Latin America. Heavy stock issuance
also depressed international returns. Economic growth was robust around the
world with the exception of Japan.
The fund performed .14% ahead of the 3.90% decline of the MSCI EAFE (Europe,
Australasia, Far East) Index for the period ended June 30, 2000. Stock
selection and sector weightings hurt performance, while country weightings were
broadly neutral. Overweighting the media and wireless telecommunications
sectors detracted from results versus EAFE, as NTT DoCoMo (the wireless unit of
Japan's NTT), Fuji TV, Telecom Italia Mobile and its parent, Telecom Italia,
fared poorly. Other key holdings such as wireless operator Vodafone of the U.K.
and handset maker Nokia of Finland declined. Underweighting weak markets such
as Japan and Germany aided performance. Our relative underweighting in
established telecom carriers British Telecom and Deutsche Telekom added value.
During the most recent quarter, we took advantage of sharp declines to increase
positions in telecom infrastructure industry leaders Ericsson of Sweden and
Nortel of Canada. In Hong Kong, we participated in the initial public offering
of China Unicom, a wireless service provider with vast potential.
For the first time in almost a year, market strength was fairly evenly
distributed across sectors in June. Investor selectivity has remained high, and
we expect that to continue. As valuations are still high--although well off
earlier peaks--we believe international markets will remain highly sensitive to
news. The broader distribution of gains in June hid the fact that volatility
within the period was high. With the Internet landscape still in a state of
flux, we expect more market volatility.
[GRAPH]
International Opportunities II Fund *** MSCI World Index
5/1/98 10,000 10,000
5/29/98 9,834 9,876
6/30/98 9,994 10,112
7/31/98 9,829 10,097
8/31/98 8,574 8,752
9/30/98 8,755 8,908
10/30/98 9,402 9,715
11/30/98 9,643 10,295
12/31/98 9,945 10,799
1/29/99 10,013 11,037
2/26/99 9,525 10,745
3/31/99 9,895 11,194
4/30/99 10,514 11,637
5/28/99 10,270 11,213
6/30/99 10,821 11,738
7/30/99 10,894 11,704
8/31/99 10,830 11,685
9/30/99 10,652 11,573
10/29/99 10,701 12,176
11/30/99 11,175 12,521
12/31/99 12,350 13,536
1/31/00 11,797 12,762
2/29/00 12,275 12,797
3/31/00 12,833 13,683
4/28/00 12,189 13,106
5/31/00 11,998 12,776
6/30/00 12,367 13,208
Top Ten Holdings (as of June 30, 2000)
% of Six Months Ago
Net Assets % of Net Assets
Vodafone AirTouch plc 2.5% N/A
Glaxo Wellcome plc 1.8% N/A
Yamanouchi Pharmaceutical Co., Ltd. 1.7% 0.7%
Canon, Inc. 1.5% N/A
Aventis SA 1.5% 1.1%
Koninklijke Philips Electronics NV 1.4% N/A
Nippon Telegraph & Telephone Corp. 1.4% 0.8%
Shell Transport & Trading Co. plc 1.4% 1.0%
Royal & Sun Alliance Insurance Group plc 1.4% N/A
Nestle SA 1.3% N/A
Average Annual Total Returns*
International MSCI MorningStar
Opportunities II Fund World Index Peer Group+
YTD** 0.14% -2.42% -0.43%
1 Year 14.28 12.52 25.84
Since Inception (5/1/98) 10.30 13.70 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Japan 21.3% Switzerland 3.6%
France 10.1% Canada 3.2%
Germany 6.6% Australia 2.4%
Netherlands 5.8% Spain 1.8%
Italy 4.8% Sweden 1.2%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a World Stock investment style.
** Year-to-date total returns are not annualized.
*** Effective June 13, 2000 the Global Equity Fund was renamed the
International Opportunities II Fund. The goal and investment strategy is
similar to that of the International Opportunties Fund.
20
<PAGE>
Inception: May 2, 1988
International Equity Index Fund
Independence International Associates, Inc. B. Greenleaf/D. Nolan
The Fund's under-performance versus its custom blended benchmark came mostly
from differences between the exchange rates that the Fund administrator uses
and the exchange rates that the Index uses. During April, tracking between the
Fund and the Custom Index was only 5 basis points. In May, the fund
outperformed the benchmark by 50 basis points and in June under performed the
benchmark by 74 basis points. The volatility in the performance is due mainly
to the difference in exchange rates used by the administrator to value the
securities and the exchange rates used by the benchmark. Over time these
differences tend to reverse. In May and June, this reversal did take place.
The portion of the performance difference between the fund and the benchmark
due to rates was approximately 30 basis points. In May and June the remaining
tracking error was due to slight differences in security and country
weightings. We manage the Fund to capture the overall characteristics of the
benchmark, without replicating the index. The Fund owns approximately 720
securities representing exposure to thirty-eight countries while the benchmark
owns over 1800 securities with exposure to those same markets. The Fund is
tracking its benchmark within expectations.
[GRAPH]
<TABLE>
<CAPTION>
International Equity Index Fund International Equity Index Benchmark (1)
<S> <C> <C>
6/29/90 10,000 10,000
6/28/91 9,495 8,877
6/30/92 10,560 8,849
6/30/93 11,778 10,682
6/30/94 13,618 12,529
6/30/95 13,962 12,773
6/28/96 15,532 14,512
6/30/97 17,672 16,419
6/30/98 17,694 17,832
6/30/99 19,310 19,648
6/30/00 22,665 23,395
</TABLE>
Top Ten Holdings (as of June 30, 2000)
--------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Deutsche Telekom AG 2.6% 3.3%
Nippon Telegraph & Telephone Corp. 2.0% 2.7%
Toyota Motor Corp. 2.0% 2.3%
Telecom Italia Mobile SpA 1.4% 1.6%
France Telecom 1.4% 1.3%
Siemens AG 1.4% 1.1%
Allianz AG 1.3% 1.3%
Total Fina SA 1.3% N/A
Nokia Oyj 1.3% 1.2%
Morgan Stanley Capital Llc 1.2% 1.1%
Average Annual Total Returns*
International International Equity MorningStar
Equity Index Fund Index Benchmark (1) Peer Group+
YTD** -5.04% -3.74% -4.53%
1 Year 17.38 19.07 25.87
3 Years 8.65 12.53 12.90
5 Years 10.17 12.87 14.95
10 Years 8.53 8.87 10.88
Top Ten Countries (as of June 30, 2000)
--------------------------------------------------------------------------------
% of % of
Investments Investments
Germany 12.5% Netherlands 2.6%
France 11.2% Sweden 2.0%
Italy 8.0% Australia 1.9%
United Kingdom 7.3% Switzerland 1.6%
Spain 3.1% South Korea 1.4%
(1) The International Equity Index Benchmark represents the MSCI EAFE from May
1998 to April 1998 and then MSCI EAFE GDP weighted from May 1998 to June
1999 and now 90% MSCI EAFE GDP - weighted/10% MSCI Emerging Markets Free
from July 1999 to present.
* Total returns are for the period ended June 30, 2000, 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a 90% weighting of the Foreign Stock, Large Cap style and a 10%
weighting of the Diversified Emerging Markets style. Prior to July 1999,
the peer group represents the Foreign Stock, Large Cap style.
** Year-to-date total returns are not annualized.
21
<PAGE>
Inception: August 31, 1999
International Equity Fund
Goldman Sachs Asset Management S. Maeda/I. Farman/S. Noble
For the quarter ended June 30, 2000, the International Equity Fund returned -
4.73% at net asset value, underperforming its benchmark, the MSCI EAFE Index
(the "Index"), which returned -3.90%.
No significant changes were made to the Fund's regional allocation during the
quarter. However, over the last few months we have tended to reduce the size of
our sector weightings, in response to high market volatility and intra-market
rotation. We have focused instead on our key strength, bottom-up stock
selection. Among the more defensive sectors, Consumer Staples stocks were among
the top performers, namely Diageo (0.8%) and British American Tobacco (0.3%).
The market favored these companies as perceived safe havens amid the volatility
in the Technology sector. In the Health Care sector, we added to performance
through the strong returns of Terumo Corp. (0.2%) and Aventis (1.1%). Several
of our holdings in the Financial Services sector also aided returns. Top
performing stocks included ING Groep (1.5%) and Takefuji Corp. (0.7%).
We remain optimistic about the long-term outlook for international equities,
despite the weakness in world equity markets this year and, most notably, the
recent correction in so-called new "economy' sectors. Our view is predicated on
the continuation of the current favorable mix around the world of positive
economic growth and relatively subdued inflation, which is providing a
supportive environment for corporate earnings growth and equity market
valuations. Furthermore, our confidence is bolstered by the significant
correction in some highly rated areas of the market, which we considered to be
vulnerable to changes in investor sentiment. The marked de-rating of
Technology, Media and Telecommunications stocks has provided the opportunity to
raise exposure to some new economy companies that we believe will be among the
long-term beneficiaries of the Internet and communication revolution.
No changes to the Fund's investment strategy have occurred during the second
quarter, or are slated to occur over the third quarter of 2000.
[GRAPH]
Intl Equity Fund MCSI EAFE Index
8/31/99 10,001 10,000
9/30/99 9,936 10,103
10/31/99 10,308 10,484
11/30/99 11,104 10,851
12/31/99 12,149 11,826
1/31/00 11,524 11,077
2/29/00 12,106 11,377
3/31/00 12,440 11,820
4/28/00 11,838 11,200
5/31/00 11,567 10,929
6/30/00 11,852 11,359
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Vodafone AirTouch plc 3.3% 1.6%
Nokia Oyj 2.7% 2.8%
Telefonaktiebolaget LM Ericsson AB 2.0% N/A
Koninklijke Philips Electronics NV 1.9% N/A
Nippon Telegraph & Telephone Corp. 1.7% 1.7%
Telefonica SA 1.6% 2.0%
Royal Dutch Petroleum Co. 1.5% N/A
BP Amoco plc 1.5% 1.2%
Glaxo Wellcome plc 1.5% 1.7%
Total Fina SA 1.4% 1.8%
Average Annual Total Returns*
International MSCI EAFE MorningStar
Equity Fund Index Peer Group+
YTD** -2.45% -3.95% -4.43%
Since Inception (8/31/99) 22.62 16.52 N/A
Top Ten Countries (as of June 30, 2000)
% of % of
investments investments
United Kingdom 16.8% Sweden 4.8%
France 10.6% Italy 3.3%
Netherlands 7.6% Finland 3.0%
Germany 6.2% Spain 2.6%
Switzerland 5.9% Australia 2.3%
* Total returns are for the period ended June 30, 2000, 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Foreign
Stock with Large Cap investment style.
** Year-to-date total returns are not annualized.
22
<PAGE>
Inception: May 1, 1996
International Opportunities Fund
Rowe Price-Fleming International, Inc. John Ford
International markets declined in the second quarter, wiping out their year-
to-date gains. After leading for several quarters, telecom, media, and
technology stocks retreated. Consumer staples, health care, and energy stocks
led for most of the period. Tech and telecom stocks returned to favor in June,
and markets rallied broadly for the first time in many months. Concerns about
interest rates and U.S. market volatility hurt international markets,
particularly in the Pacific ex-Japan and Latin America. Heavy stock issuance
also depressed international returns. Economic growth was robust around the
world with the exception of Japan.
The Fund fell 3.84% slightly trailing the 3.90% decline of the MSCI EAFE
(Europe, Australasia, Far East) Index for the period ended June 30, 2000.
Stock selection and sector weightings hurt performance, while country
weightings were broadly neutral. Overweighting the media and wireless
telecommunications sectors detracted from results versus EAFE, as NTT DoCoMo
(the wireless unit of Japan's NTT), Fuji TV, Telecom Italia Mobile and its
parent, Telecom Italia, fared poorly. Other key holdings such as wireless
operator Vodafone of the U.K. and handset maker Nokia of Finland declined.
Underweighting weak markets such as Japan and Germany aided performance. Our
relative underweighting in established telecom carriers British Telecom and
Deutsche Telekom added value. During the most recent quarter, we took
advantage of sharp declines to increase positions in telecom infrastructure
industry leaders Ericsson of Sweden and Nortel of Canada. In Hong Kong, we
participated in the initial public offering of China Unicom, a wireless
service provider with vast potential.
For the first time in almost a year, market strength was fairly evenly
distributed across sectors in June. Investor selectivity has remained high,
and we expect that to continue. As valuations are still high--although well
off earlier peaks--we believe international markets will remain highly
sensitive to news. The broader distribution of gains in June hid the fact that
volatility within the period was high. With the Internet landscape still in a
state of flux, we expect more market volatility.
The painful process of winnowing out the New Economy winners from the losers
has started, but we see room for much more consolidation. Global growth is
presently robust. We do not expect a sharp slowdown, but we are aware that
moderating economic growth would accelerate the weeding out of weaker players.
The importance of stock selection and attention to fundamentals would then
rise further.
[GRAPH]
International Opportunities International
Benchmark (1) Opportunities Fund
5/1/96 10,000 10,000
6/30/96 9,876 10,129
6/30/97 11,174 11,796
6/30/98 11,887 12,416
6/30/99 13,300 13,113
6/30/00 15,740 16,250
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Nokia Oyj 2.9% 1.8%
Vodafone AirTouch plc 2.6% N/A
Glaxo Wellcome plc 1.9% 0.9%
Total Fina SA 1.6% N/A
Koninklijke Philips Electronics NV 1.5% N/A
News Corp., Ltd. 1.5% 0.4%
Vivendi 1.5% 0.9%
Societe Television Francaise1 11.5% 0.9%
Nippon Telegraph & Telephone Corp. 1.5% 1.5%
Royal Bank of Scotland Group 1.4% N/A
Average Annual Total Returns*
Intl. Opportunities Intl. Opportunities MorningStar
Fund Benchmark (1) Peer Group+
YTD** -3.84% -3.08% -4.43%
1 Year 23.93 18.34 25.08
3 Years 11.27 12.10 12.70
Since Inception (5/1/96) 12.36 11.50 N/A
Top Ten Countries (as of June 30, 2000)
% of % of
investments investments
United Kingdom 18.2% Switzerland 4.3%
France 12.2% Hong Kong 3.3%
Netherlands 6.4% Sweden 3.2%
Italy 5.6% Spain 3.0%
Germany 4.6% Finland 2.9%
(1) The International Opportunities Benchmark represents the MSCI EAFE from May
1996 to December 1998 and the MSCI All Country World Ex. US from January
1999 to present.
* Total returns are for the period ended June 30, 2000. 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
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.
+ Source: MorningStar, Inc. Data as of 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Foreign Stock, Large Cap investment style.
** Year-to-date total returns are not annualized.
23
<PAGE>
Inception: May 1, 1998
Emerging Markets Equity Fund
Morgan Stanley Asset Management R. Meyer/A. Skov
The Fund declined 13.14% during the quarter versus a decline of 10.2% for the
MSCI EMF Index. The Fund's underperformance versus the benchmark was primarily
attributable to stock selection, while country allocation added to relative
performance. Stock selection in China, South Korea, Taiwan, Israel and Turkey
detracted from performance. On a positive note, equity selection in Brazil,
Mexico and India contributed to performance. Our overweight stance in China
(+26.3%), South Korea (-0.5%), and Israel (+9.4%) coupled with our allocation
in Malaysia (-14.8%) and our underweight stance in Mexico (-10.0%) also
contributed positively to performance. Our underweight positions in South
Africa (-5.8%) and our overweight position in Egypt (-21.9%) detracted from
performance.
Latin America remains underweighted, as we find limited investment
opportunities coupled with lagging economic growth in certain markets. Within
the region we are overweight in Brazil and Mexico; we believe equities in
these countries shall continue to fare well, supported by positive economic
trends coupled with attractive valuations and companies with great earnings
growth potential. We are maintaining and adding to our overweight stance in
Asia, as we are encouraged by trends in improving macroeconomic fundamentals,
coupled with strong earnings stories. We are market-weight Emerging Europe,
the Middle East and Africa (EEMEA), yet we have various overweight and
underweight positions within the region. Israel, where exports and foreign
direct investment have led the robust pick up in the economy, is our largest
overweight. We continue to overweight Russia, which continues to show signs of
strength, such as a stable Ruble, increasing foreign reserves, inflation
figures that are in-line with expectations and strong GDP growth.
[GRAPH]
Emerging Markets Equity Fund MSCI Emerging Markets Free Index
5/1/98 10,000 10,000
5/29/98 8,688 8,630
6/30/98 7,960 7,725
7/31/98 8,533 7,970
8/31/98 5,845 5,666
9/30/98 6,556 6,025
10/30/98 7,081 6,659
11/30/98 7,668 7,213
12/31/98 7,113 7,109
1/29/99 6,934 6,994
2/26/99 6,732 7,062
3/31/99 7,578 7,993
4/30/99 8,290 8,982
5/28/99 7,990 8,929
6/30/99 9,228 9,943
7/31/99 8,932 9,672
8/31/99 8,752 9,760
9/30/99 8,575 9,431
10/31/99 9,056 9,631
11/30/99 10,560 10,495
12/31/99 12,901 11,830
1/31/00 12,556 11,901
2/29/00 13,603 12,058
3/31/00 13,830 12,118
4/30/00 12,048 10,969
5/31/00 11,235 10,515
6/30/00 12,012 10,886
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Samsung Electronics 7.3% 5.2%
Korea Telecom Corp. 4.3% 1.4%
Telefonos de Mexico SA 4.0% 2.9%
Taiwan Semiconductor
Manufacturing Co., Ltd. 3.9% 2.1%
China Telecom (Hong Kong), Ltd. 3.0% 1.3%
SK Telecom Co., Ltd. 2.7% 3.5%
Hellenic Telecommmunications Organization SA 2.3% N/A
Hon Hai Precision Industry Co., Ltd. 2.2% 0.6%
ECI Telecommunications, Ltd. 2.2% 1.0%
Infosys Technologies, Ltd. 2.2% 1.8%
Average Annual Total Returns*
Emerging Markets MSCI Emerging MorningStar
Equity Fund(1) Markets Free Index Peer Group +
YTD** -6.89% -7.98% -8.05%
1 Year 30.17 9.48 19.27
Since Inception 8.83 4.00 N/A
(5/1/98)
Top Ten Countries (as of June 30, 2000)
% of % of
investments investments
Taiwan 13.6% Hong Kong 6.2%
Mexico 9.5% Turkey 4.2%
Brazil 8.8% South Africa 3.8%
Israel 7.1% Soviet Union 3.4%
India 6.7% Malaysia 2.1%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a Diversified Emerging Markets investment style.
(1) Returns reflect extra-ordinary capital contribution of $445,000 in June
1999.
** Year-to-date total returns are not annualized.
24
<PAGE>
Inception: March 29, 1986
Money Market Fund
John Hancock Life Insurance Co. Peter Mitsopoulos
As a result of the Fed's continued monetary tightening bias entering 2000, we
continued to shorten the fund's weighted average maturity in order to capture
higher yields when available. The weighted average maturity (WAM) of the fund
was approximately 45 days at year-end 1999 and had reached a low of 21 days in
late April. A number of certificates of deposit we had purchased over one year
ago matured out of the fund during the second quarter pulling down the WAM.
This level was lower than we would normally prefer, and accordingly, we have
been making efforts to push the level into the 30 day to 40 day range. The WAM
stood at 29 days at the end of June and we continue to move marginally longer.
The fund performed in-line with expectations during the first half of the
year. We have continued to add new floating rate securities as others mature
in an effort to maintain approximately 30% of the fund in this asset class.
These securities continue to provide attractive LIBOR based rates versus
traditional commercial paper levels. However, supply in this sector continues
to be light. Current market sentiment is leaning towards the possibility that
the Fed may not raise rates again at its August meeting. The market continues
to make it difficult to pick up any appreciable yield differential by going
out three to five months. However, when we see value in this maturity range,
we will acquire securities in an effort to pick up additional yield and
increase the fund's weighted average maturity.
The fund is invested primarily in commercial paper (68%) and adjustable rate
notes (29%) with other money market securities making up the balance. The fund
is diversified among many industry sectors and companies.
[GRAPH]
Money Market Fund
6/30/90 10,000
6/30/91 10,733
6/30/92 11,241
6/30/93 11,598
6/30/94 11,970
6/30/95 12,600
6/30/96 13,290
6/30/97 14,005
6/30/98 14,774
6/30/99 15,527
6/30/00 16,403
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Merrill Lynch % Co., Inc. 4.7% 0.6%
British Aerospace 4.7% N/A
American Honda Finance Corp. 4.3% N/A
Asset Securitization Cooperative Corp. 4.3% N/A
Corporate Asset Funding Co. 4.2% 3.0%
Ciesco L.P. 3.6% 1.2%
Old Line Funding, Corp. 3.6% N/A
Monte Rosa Capital Corp. 3.3% 1.2%
Sigma Finance, Inc. 3.3% 4.8%
Lexington Parker Capital Corp. 3.1% N/A
Average Annual Total Returns*
Money Market
Fund
YTD** 2.94%
1 Year 5.64
3 Years 5.41
5 Years 5.42
10 Years 5.07
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Financial 73.3% Consumer Cyclical 3.1%
Capital Equipment 11.4% Basic Material 1.7%
Consumer Staple 5.6% Utility 1.2%
Technology 3.7%
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, 2000. 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.
** Year-to-date total returns are not annualized.
25
<PAGE>
Inception: May 1, 1994
Short-Term Bond Fund
Independence Investment Associates, Inc. Jay Leu
There was a dramatic shift in tone in the bond market over the quarter. U.S.
Treasury rates rose sharply during the first half and fell sharply thereafter.
Economic data released in May showed signs of a slowing economy and easing of
inflationary pressures mitigating the trend of worrisome numbers released in
April. Investment grade corporate bonds underperformed Treasury securities in
the second quarter. April and May marked the fourth and fifth straight months
of underperformance for investment grade corporates, however sentiment seems
to have shifted in the corporate bond sector in June as investors anticipated
less aggressive tightening by the Federal Reserve and looked for alternatives
to Agency bonds. Lower quality bonds, which have lagged higher quality bonds
throughout the year and the second quarter, outperformed as well in June.
The Short Term Bond Fund outperformed its benchmark for the quarter despite
the difficult environment for corporate bonds. This is the fourth consecutive
quarter that the fund has outperformed its benchmark. The fund continues to
benefit from a yield advantage provided by an overweight in corporate
securities relative to the benchmark. The yield spread of one to three year
maturity corporate bonds widened by 20 basis points during the quarter,
hurting the fund's performance relative to the benchmark. Our individual
securities held in the fund outperformed relative to the average corporate
bond in the benchmark. Strong performers included: Tenet Healthcare, Beckman
Instruments, Cox Communications, MCI Worldcom Inc., and Tyco International.
Going forward, we believe short maturity corporate bonds are attractively
priced relative to corporates and we will continue to overweight them.
Furthermore, corporate bonds should benefit from a less aggressive Federal
Reserve policy. Issue selection will, however, continue to be an important
contributing factor to the Fund's performance as well.
[GRAPH]
Short-Term Bond Fund Short-Term Bond Benchmark (1)
5/1/94 10,000 10,000
6/30/94 10,010 10,032
6/30/95 10,769 10,908
6/28/96 11,211 11,476
6/30/97 11,894 12,248
6/30/98 12,679 13,155
6/30/99 13,165 13,867
6/30/00 13,841 14,537
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
U.S. Treasury 15.3% N/A
Banponce Corp. 2.8% 3.2%
MBNA America Bank N.A 2.7% 3.0%
First Hawaiian, Inc. 2.7% 3.0%
Norfolk Southern Corp. 2.7% 3.0%
Dial Corp. 2.7% 3.0%
BankBoston Corp. 2.5% 2.8%
Federal National Mortgage Assoc 2.5% 4.4%
Donaldson, Lufkin & Jenrette, Inc. 2.5% 2.8%
Gatx Capital Corp. 2.4% 2.6%
Average Annual Total Returns*
Short-Term Short-Term MorningStar
Bond Fund Bond Benchmark (1) Peer Group+
YTD** 3.00% 2.82% 2.53%
1 Year 5.14% 4.84 4.09
3 Years 5.18 5.88 5.52
5 Years 5.15 5.91 5.57
Since Inception (5/1/94) 5.91 6.26 N/A
Fund Composition (as of June 30, 2000)
Credit Quality Duration
-------------- --------
Short Term 5.80% Less than 1 Year 32.10%
AAA 24.00% 1-3 Years 50.70%
AA 2.00% 3-5 Years 17.20%
A 33.00% 5-10 Years 0.00%
BBB 32.00% Greater than 10 Years 0.00%
BB 32.00%
Below B 0%
NR/NA 0%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Short Term
Bond investment style. Prior to May 1998 (concurrent with the Fund's
strategy change), the peer group represents the Short Term Government Bond
style.
(1) Short-Term Bond Index represents the Merrill Lynch 1-5 year Government Bond
from May 1994 to April 1998 and 65% Lehman Brothers 1-3 year Corporate
Index. 35% Lehman Brothers 1-3 year Government Index, May 1998 to present.
** Year-to-date total returns are not annualized. *
26
<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 Credit Index, which includes U.S. dollar-
based, fixed-coupon debt from the U.S. Government and investment-grade
corporations. Performance net of fees for the fund was 2.02% for June, 1.32%
for the second quarter and 9.38% (unannualized) from inception. Corresponding
returns for the benchmark were 2.04%, 1.45% and 9.38%. 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 4,800 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.
Lehman Brothers made numerous classification and rules changes to the Index
effective July 1st. The name was changed to the Lehman Brothers Government
Credit Index to reflect that there are credit characteristics inherent in
issuers that are not corporations, namely sovereigns. The changes were
substantially market neutral, but they are worth noting. Yankee Corporates
will now be classified along side their domestic counterparts instead of as a
separate subsector. The foreign sector will include only Supranationals,
Sovereigns, foreign local governments and foreign agencies. Telecommunications
were unbundled into wireless, wirelines and Internet & data. Bank notes and
ERISA-eligible144As with registration rights will now be included in the
Index. There were additional adjustments that will not effect this fund or its
benchmark at this time. We successfully incorporated these changes to the fund
by the end of June.
[GRAPH]
Bond Index Fund Lehman Brothers Gov't/Corp. Bond Index
5/1/98 10,000 10,000
5/29/98 10,102 10,107
6/30/98 10,211 10,210
7/31/98 10,220 10,218
8/31/98 10,461 10,418
9/30/98 10,757 10,715
10/30/98 10,689 10,639
11/30/98 10,703 10,703
12/31/98 10,720 10,729
1/29/99 10,795 10,805
2/26/99 10,521 10,548
3/31/99 10,584 10,601
4/30/99 10,609 10,627
5/28/99 10,485 10,518
6/30/99 10,450 10,485
7/30/99 10,420 10,456
8/31/99 10,414 10,447
9/30/99 10,497 10,541
10/29/99 10,514 10,569
11/30/99 10,513 10,562
12/31/99 10,445 10,498
1/31/00 10,425 10,495
2/29/00 10,551 10,626
3/31/00 10,713 10,779
4/28/00 10,666 10,726
5/31/00 10,640 10,717
6/30/00 10,855 10,935
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
U.S. Treasury 48.8% 48.3%
Federal National Mortgage Assoc. 8.2% 5.1%
Federal Home Loan Mortgage Corp. 4.6% 6.4%
Federal Home Loan Bank 1.9% 0.7%
Ford Motor Credit Co. 1.0% N/A
General Motors Acceptance Corp. 1.0% 0.9%
KFW International Finance 0.7% 0.7%
ICI Wilmington, Inc. 0.7% 0.7%
Morgan Stanley, Dean Witter, Discover & Co. 0.6% 0.7%
Lockheed Martin Corp. 0.6% N/A
Average Annual Total Returns*
Bond Index L/B Govt./Corp. MorningStar
Fund Bond Index Peer Group+
YTD** 3.93% 4.16% 3.81%
1 Year 3.88 4.29 4.00
Since Inception (5/1/98) 3.86 4.21 N/A
Fund Composition (as of June 30, 2000)
Credit Quality Duration
Short Term .8% Less than 1 Year 5.33%
AAA 67.4% 1-3 Years 17.35%
AA 7.1% 3-5 Years 21.68%
A 14.9% 5-10 Years 27.62%
BBB 9.8% Greater than 10 Years 28.02%
Below BB 0.0%
NR/NA 0.0%
* Total returns are for the period ended June 30, 2000. 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 are as of 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a General
Bond Intermediate High Quality investment style.
** Year-to-date total returns are not annualized.
27
<PAGE>
Inception: March 29, 1986
Active Bond Fund (Formerly Sovereign Bond Fund)
John Hancock Advisers, Inc. James Ho
During the quarter overall, the Fund gained 1.78%, compared to the Lehman
Aggregate index at 1.74%. Year-to-date the Fund's return of 3.36%
underperformed the index return of 3.98%. Underperformance can primarily be
attributed to spreads widening across most sectors of the bond market through
May.
At quarter-end, the portfolio held a 17.8% position in Treasuries versus the
index weighting of 39.5%, and a 32.1% in corporate bonds versus 19.9% held by
the index. Given the strong relative performance of Treasuries during the
quarter, our underweight position in this sector relative to the benchmark
detracted from performance results.
The next FOMC meeting is scheduled for August 22. The Federal funds futures
rate suggests that investors anticipate a quarter-point rate increase. Bonds
currently offer good value and they should rally strongly when the Fed's
policy moves show more evidence of restraining inflation. We remain optimistic
that investment grade corporate bonds will provide excellent performance over
the next few months, as the Fed tightening cycle winds down. While the
emerging markets have had exceptionally good performance year-to-date, the
limited liquidity and the continued volatility presently keep us from
committing additional funds to this market sector.
[GRAPH]
Active Bond Fund Active Bond Benchmark (1)
6/30/90 10,000 10,000
6/30/91 11,089 11,022
6/30/92 12,607 12,585
6/30/93 14,175 14,240
6/30/94 14,109 14,032
6/30/95 16,011 15,823
6/28/96 16,804 16,560
6/30/97 18,399 17,843
6/30/98 20,383 19,857
6/30/99 20,852 20,392
6/30/00 21,666 21,291
Top Ten Holdings (as of June 30, 2000)
--------------------------------------------------------------------------------
% of six months ago
Investments % of Investments
Government National Mortgage Assoc. 21.6% 22.1%
U.S. Treasury 13.1% 18.4%
Federal National Mortgage Assoc. 10.6% 10.4%
GMAC Commercial Mortgage Securities, Inc. 1.2% 1.4%
Peco Energy Transition Trust 1.2% 0.3%
Federal Home Loan Mortgage Corp. 1.1% 1.3%
Hydro-Quebec 1.0% 1.1%
UCFC Home Equity Loan 0.9% 1.5%
Amresco Residential Securities 0.9% 1.0%
Morgan Stanley Capital 0.9% N/A
Average Annual Total Returns*
--------------------------------------------------------------------------------
Active Bond Active Bond MorningStar
Fund Benchmark (1) Peer Group+
YTD** 3.36% 3.98% 2.81%
1 Year 3.91 4.41 3.58
3 Years 5.60 6.07 5.05
5 Years 6.24 6.12 5.88
10 Years 7.83 7.85 7.60
Fund Composition (as of June 30, 2000)
--------------------------------------------------------------------------------
Credit Quality Duration
Short Term 4.00% Less than 1 Year 4.00%
AAA 42.60% 1-3 Years 11.70%
AA 6.70% 3-5 Years 17.30%
A 12.70% 5-10 Years 36.50%
BBB 14.40% Greater than 10 Years 30.50%
BB 9.70%
B 8.20%
Below B .10%
NR/NA 1.60%
(1) The Active Bond Benchmark represents the Lehman Brothers
Government/Corporate Bond Index from April 1986 to September 1999 and
Lehman Brothers Aggregate Bond Index from October 1999 to present.
* Total returns are for the period ended June 30, 2000, 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having an
Intermediate Term Bond investment style.
** Year-to-date total returns are not annualized.
28
<PAGE>
Inception: June 30, 2000
Core Bond Fund
Federated Investment Management Company Balestrino/Ellenberger/Durbiano
The Fund commenced investment operations on June 30, 2000, and seven Treasury
securities were purchased to match yield curve exposure of the benchmark
(Lehman Aggregate Bond Index) . The duration position was slightly longer than
the benchmark at quarter's end. Looking ahead, transactions will focus on
adding spread product such as agencies, corporates, mortgage-backed and asset-
backed securities to more clearly reflect both the focus of the portfolio as a
core bond portfolio and the portfolio's comparison to the benchmark. We expect
to transition to a portfolio overweighted in spread product and slightly
longer in duration compared to the benchmark. Our yield curve stance for now
will remain roughly laddered.
29
<PAGE>
Inception: May 1, 1996
Global Bond Fund
J.P. Morgan Investment Management, Inc. David Gibbon
The Global Bond Fund returned 1.21% for the quarter ending June 30, 2000
versus the J.P. Morgan GBI Hedged Index return of 1.72%.
Although the long duration position of the fund within the U.S. and Europe
were positives contributors to the fund's performance during the first half of
the year, it dragged down performance during the second half. Later in the
year returns to our curve flattening positions were mixed; European curves
flattened sharply on repricing of monetary policy expectations, while Japanese
rates were stable but the curve remained steep. In addition, the fund's
underexposure to Japan caused us to miss some positive carry in that market.
Yield spreads on non-government sectors widened in the second half, causing
these securities to underperform similar-maturity governments. Heavy supply
imbalances and credit concerns in all markets drove this underperformance. The
fund's non-government bonds were reduced throughout the first half of the
year, but detracted from total excess returns.
Marked weakening in non-Japan Asian industrial activity and deteriorating US
industrial confidence underpin our continued bullish outlook for government
bonds. We also expect the current spate of strong European indicators to give
way to moderation in the second half, falling from their peak. As global
industrial activity dampens, we expect the marked deterioration in inflation
expectations to reverse and support lower government yields. We anticipate
modest further tightening in Europe and the US, together with an end to the
zero-rate policy in Japan, in coming months, but regard the end to the global
policy tightening cycle to be close.
[GRAPH]
Global Bond Fund Global Bond Benchmark (1)
5/1/96 10,000 10,000
5/31/96 9,983 10,002
6/30/96 10,068 10,123
7/31/96 10,103 10,163
8/30/96 10,112 10,184
9/30/96 10,297 10,371
10/31/96 10,490 10,587
11/29/96 10,674 10,775
12/31/96 10,671 10,704
1/31/97 10,723 10,763
2/28/97 10,755 10,801
3/31/97 10,634 10,697
4/30/97 10,761 10,847
5/30/97 10,871 10,938
6/30/97 11,021 11,082
7/31/97 11,262 11,351
8/29/97 11,194 11,281
9/30/97 11,396 11,456
10/31/97 11,459 11,599
11/28/97 11,518 11,661
12/31/97 11,637 11,787
1/30/98 11,774 11,939
2/27/98 11,795 11,958
3/31/98 11,844 12,015
4/30/98 11,899 12,078
5/29/98 12,012 12,206
6/30/98 12,101 12,296
7/31/98 12,133 12,344
8/31/98 12,315 12,556
9/30/98 12,624 12,852
10/30/98 12,538 12,796
11/30/98 12,639 12,886
12/31/98 12,702 12,910
1/29/99 12,811 13,019
2/26/99 12,564 12,826
3/31/99 12,667 12,917
4/30/99 12,704 12,990
5/28/99 12,577 12,912
6/30/99 12,446 12,766
7/30/99 12,562 12,739
8/31/99 12,512 12,753
9/30/99 12,435 12,818
10/29/99 12,430 12,844
11/30/99 12,454 12,887
12/31/99 12,428 12,889
1/31/00 12,395 12,899
2/29/00 12,496 13,029
3/31/00 12,673 13,245
4/28/00 12,670 13,279
5/31/00 12,739 13,357
6/30/00 12,827 13,474
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
U.S. Treasury 14.9% N/A
Government of Japan 4.9% 5.4%
Government of France 3.8% 6.4%
Republic of Italy 2.9% 1.8%
Government of Canada 2.5% 4.7%
CADES 2.1% N/A
Government of Spain 1.8% 2.3%
Kingdom of Denmark 1.5% 2.8%
DePfa Deutsche Pfandbriefbank AG 1.2% 1.8%
Treuhandanstalt 1.2% 2.0%
Average Annual Total Returns*
Global Bond Global Bond MorningStar
Fund Benchmark (1) Peer Group+
YTD** 3.21% 4.54% 2.84%
1 Year 3.06 5.55 3.14
3 Years 5.19 6.73 4.83
Since Inception (5/1/96) 6.16 7.42 N/A
Fund Composition (as of June 30, 2000)
Credit Quality Duration
Short Term 7.83% Less than 1 Year 7.83%
AAA 40.31% 1-3 Years 0%
AA 0% 3-5 Years 13.40%
A 0% 5-10 Years 25.60%
BBB 0% Greater than 10 Years 14.89%
BB 0%
B 0%
Below B 0%
Foreign Currency 51.86%
* Total returns are for the period ended June 30, 2000. 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.
(1) Global Bond Benchmark: 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a General Bond
Intermediate High Quality investment style and an International Bond
investment style. The peer group represents a 35% weighting of the General
Bond intermediate High Quality style and a 65% weighting of the
International Bond style. Prior to May 1999 (concurrent with the Fund's
strategy change), the peer group represents a 75% weighting of the General
Bond Intermediate High Quality style and a 25% weighting of the
International Bond style.
** Year-to-date total returns are not annualized
30
<PAGE>
Inception: May 1, 1998
High Yield Bond Fund
Wellington Management Company, LLP Crawford/Smith/McEvoy
During the quarter, the Fund gained 1.32% compared to a 1.2% return of the
Lehman High Yield Index. Since inception, on April 30, 1998, the return on the
Fund has been .03%, compared to the -0.3% return of the Lehman HY Index.
In the first quarter of 2000, the US high yield market, as measured by the
Lehman HY Index, had a return of 1.2%. This performance lagged the 1.7% return
of investment grade bonds, as measured by the Lehman Brothers Aggregate Index.
This underperformance of the high yield market versus higher quality bonds came
from the widening of the spread of high yield versus the 10-year treasury from
648 basis points on March 31st to 661 basis points on June 30, 2000. This
spread widening was significantly less than 137 basis points of widening that
occurred in the first quarter. Within high yield, lower quality ("B-rated")
bonds continued to lag higher quality bonds ("BB-rated") in the second quarter.
The high yield market started to benefit in June from lower volatility in the
financial markets. Given the very attractive yield, a higher tolerance for
risk, and the belief that the Fed may be near the end of its tightening policy,
retail investors poured money back into high yield mutual funds.
During the quarter, we continued to adhere to our long-running preference for
issuers that have recurring revenue from repeat customers. To that end,
telecommunications, media/entertainment, and cable continue to be the three
largest industry weightings in the Fund.
[GRAPH]
High-Yield Bond Fund L/B High Yield Bond Index
5/1/98 10,000 10,000
5/31/98 9,987 10,035
6/30/98 10,028 10,071
7/31/98 10,075 10,129
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 9,962
2/28/99 9,884 9,903
3/31/99 10,062 9,998
4/30/99 10,214 10,192
5/31/99 9,992 10,054
6/30/99 9,989 10,033
7/31/99 9,993 10,073
8/31/99 9,925 9,961
9/30/99 9,874 9,889
10/31/99 9,806 9,824
11/30/99 10,090 9,940
12/17/99 10,200 10,051
1/31/00 10,132 10,008
2/29/00 10,123 10,027
3/31/00 9,876 9,817
4/30/00 9,945 9,832
5/31/00 9,777 9,731
6/30/00 10,007 9,930
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Nextel Communications, Inc. 2.3% 2.2%
Lyondell Chemical Co. 2.1% 1.5%
Federal-Mogul Corp. 2.1% N/A
EchoStar DBS Corp. 2.0% 1.7%
Charter Communications Holdings, LLC 2.0% 1.3%
NTL Communications Corp. 1.6% 1.5%
McLeodUSA, Inc. 1.6% 0.9%
Lin Holdings Corp. 1.6% 1.5%
GCI, Inc. 1.4% 1.8%
PSINET, Inc. 1.4% 1.3%
Average Annual Total Returns*
High-Yield L/B High-Yield MorningStar
Bond Fund Bond Index Peer Group+
YTD** -1.89% -1.21% -1.16%
1 Year 0.17 -1.03 -0.50
Since Inception (5/1/98) 0.03 -0.33 N/A
Fund Composition (as of June 30, 2000)
Credit Quality Duration
3.30% Less than 1 Year 3.30%
AAA 0% 1-3 Years .50%
AA 0% 3-5 Years 7.60%
A 0% 5-10 Years 86.10%
BBB .70% Greater than 10 Years 2.50%
BB 21.80%
B 69.40%
Below B 4.00%
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a High Yield
investment style.
** Year-to-date total returns are not annualized.
31
<PAGE>
Inception: March 29, 1986
Managed Fund
Independence Investment Associates, Inc. J. Forelli/J. Leu
Your balanced fund returned -0.57% during the second quarter of 2000,
exceeding the -0.91% return of the benchmark (60% S&P 500, 40% Lehman Brothers
Aggregate). Asset Allocation remained at an approximate 60% Equity/40% Fixed
Income mix throughout the quarter.
The equity portion of the fund returned -1.88% in the second quarter of 2000,
well ahead of the S&P 500 index return of -2.66%. Since the broadening of the
equity market began in March, the equity portion has outperformed its benchmark
by over 2.5%. Investments in health care, beverages and financials did well
while previous winners in telecom, retail and computer software were weak.
The domestic fixed income portion of your fund underperformed the Lehman
Aggregate Index during the quarter due to its underweight in U.S. Treasury
securities and overweight in long maturity corporate bonds relative to the
benchmark. Finance and lower-rated corporates bonds underperformed. Your bond
fund's international bond exposure was maintained at 17% during the quarter.
The exposure to international bonds had a slight negative impact on your fund's
performance.
It is clear that after six interest rate hikes, U.S. economic growth will
moderate. With higher than expected initial jobless claims, weakening retails
sales and slowing housing starts, consumer confidence is beginning to erode,
albeit from a high level. Although we believe that the Fed will be successful
in its attempt to achieve a soft landing, we expect the stock and bond markets
to remain volatile as investors struggle to assess the outcome. Stock and bond
selection will be especially important during this period of uncertainty. With
our stock and bond selection skill, valuation discipline and emphasis on
diversification, we are extremely well positioned to add value in this
environment.
[GRAPH]
Managed Fund Managed Benchmark (1)
6/29/90 10,000 10,000
6/28/91 11,074 10,910
6/30/92 12,627 12,434
6/30/93 14,211 14,109
6/30/94 14,371 14,103
6/30/95 16,711 16,826
6/28/96 19,226 19,343
6/30/97 22,369 23,350
6/30/98 27,575 28,486
6/30/99 31,052 32,815
6/30/00 32,425 34,924
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
Federal National Mortgage Assoc. 9.5% 10.3%
U.S. Treasury 4.1% 2.9%
Government National Mortgage Assoc. 3.0% 3.2%
Pfizer, Inc. 2.7% 0.5%
General Electric Co. 2.3% 2.9%
Cisco Systems, Inc. 2.0% 2.4%
Intel Corp. 2.0% 1.6%
Microsoft Corp. 1.8% 3.2%
Citigroup, Inc. 1.6% 2.1%
Wal-Mart Stores, Inc. 1.3% 1.4%
Average Annual Total Returns*
Managed Managed MorningStar
Fund Benchmark (1) Peer Group+
YTD** 1.21% 1.45% 1.71%
1 Year 4.42 6.43 5.76
3 Years 13.17 14.36 10.97
5 Years 14.18 15.73 13.50
10 Years 12.48 13.32 12.01
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Governmental 21.3% Utility 3.8%
Technology 19.1% Retail 3.7%
Financial 16.6% Consumer Cyclical 3.3%
Health Care 8.5% Energy 2.8%
Capital Equipment 7.0% Consumer Staple 1.6%
* Total returns are for the period ended June 30, 2000. 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.
(1) The Managed Benchmark represents 50% S&P 500/50% Lehman Brothers
Government/Corporate Bond from April 1986 to December 1997 then 60% S&P
500/40% Lehman Brothers Government/Corporate Bond from 1998 to April 1998
and now 60% S&P 500/40% Lehman Brothers Aggregate Bond from May 1998 to
present.
+ Source: MorningStar, Inc. Data as of 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Domestic
Hybrid investment style.
** Year-to-date total returns are not annualized.
32
<PAGE>
Inception: August 31, 1999
Aggressive Balanced Fund
Independence Investment Associates, Inc. J. Forelli/J. Leu
Your balanced fund returned -0.86% during the second quarter of 2000,
exceeding the -1.56% return of the benchmark (75% S&P 500, 25% Lehman Brothers
Aggregate). Asset Allocation remained at an approximate 75% Equity/25% Fixed
Income mix throughout the quarter.
The equity portion of the fund returned -1.53% in the second quarter of 2000,
well ahead of the S&P 500 index return of -2.66%. Since the broadening of the
equity market began in March, the equity portion has outperformed its benchmark
by almost 3%. Investments in health care, energy and insurance did well while
previous winners in telecom, chemicals and computer software were weak.
The domestic fixed income portion of your fund underperformed the Lehman
Aggregate Index during the quarter due to its underweight in U.S. Treasury
securities and overweight in long maturity corporate bonds relative to the
benchmark. In June we witnessed a change in market sentiment as investors
anticipated the end of Fed rate increases and corporates and lower quality
bonds outperformed.
It is clear that after six interest rate hikes, U.S. economic growth will
moderate. With higher than expected initial jobless claims, weakening retails
sales and slowing housing starts, consumer confidence is beginning to erode,
albeit from a high level. Although we believe that the Fed will be successful
in its attempt to achieve a soft landing, we expect the stock and bond markets
to remain volatile as investors struggle to assess the outcome. Stock and bond
selection will be especially important during this period of uncertainty. With
our stock and bond selection skill, valuation discipline and emphasis on
diversification, we are extremely well positioned to add value in this
environment.
[GRAPH]
Aggressive Balanced Fund Aggressive Balanced Benchmark (1)
8/31/99 10,001 10,000
9/30/99 9,830 9,823
10/31/99 10,274 10,298
11/30/99 10,383 10,455
12/31/99 10,709 10,905
1/31/00 10,222 10,485
2/29/00 10,011 10,367
3/31/00 10,876 11,162
4/30/00 10,679 10,902
5/31/00 10,611 10,733
6/30/00 10,782 10,988
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
U.S. Treasury 8.4% 5.3%
Federal National Mortgage Assoc. 7.6% 7.2%
Pfizer, Inc. 3.4% 0.5%
General Electric Co. 3.0% 2.1%
Cisco Systems, Inc. 2.7% 2.4%
Citigroup, Inc. 2.5% 2.4%
Intel Corp. 2.5% 1.6%
Microsoft Corp. 2.2% 3.5%
Oracle Corp. 1.5% 0.8%
Exxon Mobil Corp. 1.5% 0.8%
Average Annual Total Returns*
Aggressive Aggressive MorningStar
Balanced Balanced Peer
Fund Benchmark(1) Group+
YTD** 0.68% 0.76% 1.71%
Since Inception (8/31/99) 9.46 11.96 N/A
Top Ten Sectors (as of June 30, 2000)
% of % of
investments investments
Technology 24.5% Retail 5.0%
Governmental 16.1% Utility 4.2%
Financial 12.5% Consumer Cyclical 4.1%
Health Care 9.7% Energy 3.3%
Capital Equipment 7.8% Basic Material 1.7%
(1) The benchmark represents 75% S&P 500 and 25% Lehman Brothers Aggregate Bond
Index.
* Total returns are for the period ended June 30, 2000. 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for all variable annuity and life
sub-accounts within the Morningstar variable universe having a Domestic
Hybrid investment style.
** Year-to-date total returns are not annualized.
33
<PAGE>
Inception: May 1, 1996
Global Balanced Fund (Formerly International Balanced Fund)
Brinson Partners, Inc. Management Team
The Global Balanced Fund provided a -1.54% return for the second quarter,
which outperformed the benchmark return of -3.5%. Peer comparisons are not
available at this time.
The Fund performed well versus the index, although absolute returns were
negative for the quarter. Market turbulence, particularly in equities,
continued in the 2nd quarter, as aggregate equity indices generally fell across
the board. The Fund was weighted in favor of bonds over equities; therefore the
weak equity returns added value relative to the passive index. In addition,
industry and stock selection were critical during the quarter. The "old
economy" value-oriented securities significantly outperformed the "new era"
sectors of telecommunication and technology. This was a major contributor to
the Fund, as the stock selection was very positive in most of the global
markets. In the U.S. market, for example, the predominance of value oriented
equity securities, added significant value over the benchmark, and returned
positive results relative to a negative index.
Currency management during the quarter was also a positive contributor as the
portfolio was well positioned for the devaluation in the Japanese yen and the
U.K. pound.
Looking forward, our assessment of the aggregate U.S. equity market is that it
appears very overvalued, but the distortion is exaggerated due to several
industries: technology, media and telecommunications. On the other hand, we
find value in the portfolio's overweights in materials, energy and healthcare.
From an asset class perspective, we continue to favor bonds over equities, as
corporate earnings on a global basis continue to come under tremendous pressure
to meet the bold expectations in the face of a slowing economy. In addition,
macroeconomic imbalances are also of concern, particularly the current account
deficit in America and the budget deficit in Japan.
[GRAPH]
Global Balanced Fund Global Balanced Composite Benchmark (1)
5/1/96 10,000 10,000
6/30/96 10,055 9,941
6/30/97 11,433 10,910
6/30/98 11,915 11,442
6/30/99 12,412 12,280
6/30/00 12,991 13,779
Top Ten Holdings (as of June 30, 2000)
% of six months ago
investments % of investments
U.S. Treasury 14.9% N/A
Government of Japan 4.9% 5.4%
Government of France 3.8% 6.4%
Republic of Italy 2.9% 1.8%
Government of Canada 2.5% 4.7%
CADES 2.1% N/A
Government of Spain 1.8% 2.3%
Kingdom of Denmark 1.5% 2.8%
DePfa Deutsche Pfandbriefbank AG 1.2% 1.8%
Treuhandanstalt 1.2% 2.0%
Average Annual Total Returns*
Global Balanced Global Balanced MorningStar
Fund Composite Benchmark (1) Peer Group+
YTD** -4.38% -3.31% -0.14%
1 Year 4.66 12.21 7.55
3 Years 4.35 8.09 7.34
Since Inception (5/1/96) 6.48 8.00 N/A
Top Ten Countries (as of June 30, 2000)
% of % of
investments investments
Japan 14.3% Canada 3.3%
France 8.6% Australia 2.7%
United Kingdom 7.0% Spain 2.7%
Germany 4.4% Netherlands 2.6%
Italy 3.8% Sweden 1.9%
* Total returns are for the period ended June 30, 2000. 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.
(1) 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 6/30/00. Although gathered from
reliable sources, data completeness and accuracy cannot be guaranteed.
Represents an average annual total return for the sub-accounts of all
variable annuity and life products within the Morningstar variable universe
having a 65% weighting of the World Stock, Large Cap style, a 12% weighting
of the General Bond Intermediate style and a 23% weighting of the
International Bond style. Prior to May 2000 (concurrent with the Fund's
strategy change), the peer group represents the International Hybrid
investment style.
** Year-to-date total returns are not annualized.
34
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Fundamental Emerging
Cap Mid Cap Aggressive Active Core Markets International International
Growth Growth Balanced Bond Bond Equity Equity Index Opportunities II
---------- ----------- ---------- -------- ------ -------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $1,154,089 $22,174 $13,569 $776,879 $4,847 $46,720 $184,598 $23,392
Net unrealized appreciation
(depreciation) of
investments................. 330,379 5,145 693 (11,759) (6) 130 39,711 1,064
Short-Term Investments at
market...................... 38,005 4,374 1,536 70,698 1,422 5,445 1,862
---------- ------- ------- -------- ------ ------- -------- -------
Total Investments.......... 1,522,473 31,693 15,798 835,818 4,841 48,272 229,754 26,318
Cash........................ 1,972 103 103 1,587
Receivable for:
Investments sold........... 117,860 1,372
Fund shares sold........... 453 5,304 307 423 494
Interest................... 7 1 39 11,559 51
Dividends.................. 538 3 10 58 417 44
Futures contracts daily
variation.................. 36
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts.................. 14
Other assets...............
---------- ------- ------- -------- ------ ------- -------- -------
TOTAL ASSETS............... 1,640,878 33,069 16,300 854,653 4,995 48,740 230,630 28,457
LIABILITIES
Payables for:
Investments purchased...... 145,872 1,230 1,547 32,843 239 2,340
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation..................
Unrealized depreciation in
forward foreign currency
contracts.................. 3 31
Other liabilities.......... 121 10 9 187 26 186 15
---------- ------- ------- -------- ------ ------- -------- -------
TOTAL LIABILITIES.......... 145,993 1,240 1,556 33,030 268 217 2,355
---------- ------- ------- -------- ------ ------- -------- -------
NET ASSETS.................. $1,494,885 $31,829 $14,744 $821,623 $4,995 $48,472 $230,413 $26,102
========== ======= ======= ======== ====== ======= ======== =======
Shares of beneficial
interest outstanding........ 51,798 1,872 1,392 89,883 500 4,245 12,459 2,174
---------- ------- ------- -------- ------ ------- -------- -------
Net asset value per share... $ 28.86 $ 17.00 $ 10.59 $ 9.14 $ 9.99 $ 11.42 $ 18.49 $ 12.00
========== ======= ======= ======== ====== ======= ======== =======
Composition of net assets:
Capital Paid in............ 1,009,610 26,239 14,073 869,091 5,000 44,915 188,849 22,556
Accumulated net realized
gain (loss) on investments. 154,896 489 (22) (40,869) 3,494 1,992 2,453
Undistributed (distribution
in excess of) net
investment income.......... (44) 5,160 1 (64) (29) 15
Net unrealized
appreciation/(depreciation)
of:
Investments................ 330,379 5,145 693 (11,759) (6) 130 39,711 1,064
Foreign currency
translation................ (3) (31) 14
Futures contracts.......... (79)
---------- ------- ------- -------- ------ ------- -------- -------
Net Assets.................. $1,494,885 $31,829 $14,744 $821,623 $4,995 $48,472 $230,413 $26,102
========== ======= ======= ======== ====== ======= ======== =======
</TABLE>
See notes to financial statements.
35
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International Small Cap Global Mid Cap Mid Cap Large Cap Large Cap American Leaders
Equity Growth Balanced Growth Blend Value Value CORE Large Cap Value
------------- --------- -------- -------- ------- --------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $12,975 $238,508 $29,017 $473,175 $8,955 $156,822 $ 9,868
Net unrealized appreciation
(depreciation) of
investments................. 981 45,192 155 52,732 745 (5,267) (393)
Short-Term Investments at
market...................... 1,200 7,215 894 25,391 250 6,255 600 $4,930
------- -------- ------- -------- ------ -------- ------- ------
Total Investments.......... 15,156 290,915 30,066 551,298 9,950 157,810 10,075 4,930
Cash........................ 298 1 294 29 15 185 176 71
Receivable for:
Investments sold........... 2,252 45,364 89 900 56
Fund shares sold........... 202 78
Interest................... 1 223
Dividends.................. 25 43 8 332 15
Futures contracts daily
variation.................. 5
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts.................. 3 101 2
Other assets...............
------- -------- ------- -------- ------ -------- ------- ------
TOTAL ASSETS............... 15,684 293,169 $30,805 596,691 10,062 159,229 10,327 5,001
LIABILITIES
Payables for:
Investments purchased...... 1,535 2,235 272 28,822 309 285
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation..................
Unrealized depreciation in
forward foreign currency
contracts..................
Other liabilities.......... 9 2 19 81 5 57 6
------- -------- ------- -------- ------ -------- ------- ------
TOTAL LIABILITIES.......... 1,544 2,237 291 28,903 314 342 6
------- -------- ------- -------- ------ -------- ------- ------
NET ASSETS.................. $14,140 $290,932 $30,514 $567,788 $9,748 $158,887 $10,321 $5,001
======= ======== ======= ======== ====== ======== ======= ======
Shares of beneficial
interest outstanding........ 1,215 14,427 3,023 20,266 807 12,192 1,070 500
------- -------- ------- -------- ------ -------- ------- ------
Net asset value per share... $ 11.64 $ 20.17 $ 10.09 $ 28.02 $12.08 $ 13.03 $ 9.64 $10.00
======= ======== ======= ======== ====== ======== ======= ======
Composition of net assets:
Capital Paid in............ 12,513 232,945 30,429 434,538 8,529 160,372 10,676 5,000
Accumulated net realized
gain (loss) on investments. 617 13,441 70 81,808 474 3,747 45
Undistributed (distribution
in excess of) net
investment income.......... 26 (646) (241) (1,290) 35 1
Net unrealized
appreciation/(depreciation)
of:
Investments................ 981 45,192 155 52,732 745 (5,267) (393)
Foreign currency
translation................ 3 101
Futures contracts.......... (7)
------- -------- ------- -------- ------ -------- ------- ------
Net Assets.................. $14,140 $290,932 $30,514 $567,788 $9,748 $158,887 $10,321 $5,001
======= ======== ======= ======== ====== ======== ======= ======
</TABLE>
See notes to financial statements.
36
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large/Mid Money Mid Cap Small/Mid Bond Large Cap Small/Mid Small/Mid
Cap Value Market Value Cap Growth Index Aggressive Growth Cap CORE Cap Value
--------- -------- ------- ---------- ------- ----------------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $8,258 $90,206 $162,267 $46,923 $22,281 $14,900 $ 9,633
Net unrealized appreciation
(depreciation) of
investments................. (78) 5,736 16,477 (1,649) 2,422 1,477 377
Short-Term Investments at
market...................... 455 $416,264 1,715 7,413 1,185 342 454
------ -------- ------- -------- ------- ------- ------- -------
Total Investments.......... 8,635 416,264 97,657 186,157 46,459 25,045 16,377 10,464
Cash........................ 1 146 137
Receivable for:
Investments sold........... 249 1,257 91
Fund shares sold........... 9,119 208
Interest................... 1,617 2 792
Dividends.................. 12 105 30 4 15 11
Futures contracts daily
variation..................
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts..................
Other assets...............
------ -------- ------- -------- ------- ------- ------- -------
TOTAL ASSETS............... 8,896 417,882 99,165 $195,308 47,251 25,140 16,529 10,683
LIABILITIES
Payables for:
Investments purchased...... 430 2,316 8,748 99 201 439
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation..................
Unrealized depreciation in
forward foreign currency
contracts..................
Other liabilities.......... 5 133 36 413 30 12 7 5
------ -------- ------- -------- ------- ------- ------- -------
TOTAL LIABILITIES.......... 435 133 2,352 9,161 129 213 7 444
------ -------- ------- -------- ------- ------- ------- -------
NET ASSETS.................. $8,461 $417,749 $96,813 $186,147 $47,122 $24,927 $16,522 $10,239
====== ======== ======= ======== ======= ======= ======= =======
Shares of beneficial
interest outstanding........ 837 41,774 7,183 12,218 5,040 2,043 1,606 856
------ -------- ------- -------- ------- ------- ------- -------
Net asset value per share... $10.11 $ 10.00 $ 13.48 $ 15.24 $ 9.35 $ 12.20 $ 10.29 $ 11.97
====== ======== ======= ======== ======= ======= ======= =======
Composition of net assets:
Capital Paid in............ 8,453 417,749 98,166 166,095 49,343 22,163 15,351 8,936
Accumulated net realized
gain (loss) on investments. 84 (7,085) 3,751 (578) 385 (307) 921
Undistributed (distribution
in excess of) net
investment income.......... 2 (4) (176) 6 (43) 1 5
Net unrealized
appreciation/(depreciation)
of:
Investments................ (78) 5,736 16,477 (1,649) 2,422 1,477 377
Foreign currency
translation................
Futures contracts..........
------ -------- ------- -------- ------- ------- ------- -------
Net Assets.................. $8,461 $417,749 $96,813 $186,147 $47,122 $24,927 $16,522 $10,239
====== ======== ======= ======== ======= ======= ======= =======
</TABLE>
See notes to financial statements.
37
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Real Short- Small High
Estate Growth & Term Cap International Equity Yield Global
Equity Income Managed Bond Value Opportunities Index Bond Bond
-------- ---------- ---------- ------- ------- ------------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Long Term Investments at
cost........................ $129,027 $3,183,516 $2,810,271 $69,580 $71,814 $ 83,210 $421,836 $25,506 $60,195
Net unrealized appreciation
(depreciation) of
investments................. 11,195 753,365 381,124 (1,144) (1,681) 15,128 84,206 (1,719) (1,510)
Short-Term Investments at
market...................... 3,369 56,430 376,055 5,035 1,737 3,349 934 1,526 5,245
-------- ---------- ---------- ------- ------- -------- -------- ------- -------
Total Investments.......... 143,591 3,993,311 3,567,450 73,471 71,870 101,687 506,976 25,313 63,930
Cash........................ 7,126 649 68 499
Receivable for:
Investments sold...........
Fund shares sold........... 107,134 141 261 112
Securities lending
interest...................
Interest................... 11 13,877 1,145 610 833
Dividends.................. 44 3,325 1,584 99 154 457
Futures contracts daily
variation.................. 36 106
Foreign currency sold......
Unrealized appreciation in
forward foreign currency
contracts..................
Other assets...............
-------- ---------- ---------- ------- ------- -------- -------- ------- -------
TOTAL ASSETS............... 143,635 3,996,647 3,697,207 74,616 71,969 102,631 507,868 26,035 65,262
LIABILITIES
Payables for:
Investments purchased...... 469,797 751 123 1,216 713
Fund shares purchased......
Foreign currency purchased.
Future contracts daily
variation.................. 37
Unrealized depreciation in
forward foreign currency
contracts.................. 7,961 2 1,441
Other liabilities.......... 63 389 277 58 16 64 226 20 20
-------- ---------- ---------- ------- ------- -------- -------- ------- -------
TOTAL LIABILITIES.......... 63 389 478,035 809 16 189 1,442 733 1,498
-------- ---------- ---------- ------- ------- -------- -------- ------- -------
NET ASSETS.................. $143,572 $3,996,258 $3,219,172 $73,807 $71,953 $102,442 $506,426 $25,302 $63,764
======== ========== ========== ======= ======= ======== ======== ======= =======
Shares of beneficial
interest outstanding........ 11,324 201,605 209,089 7,608 6,571 7,048 25,019 2,995 6,396
-------- ---------- ---------- ------- ------- -------- -------- ------- -------
Net asset value per share... $ 12.68 $ 19.82 $ 15.40 $ 9.70 $ 10.95 $ 14.53 $ 20.24 $ 8.45 $ 9.97
======== ========== ========== ======= ======= ======== ======== ======= =======
Composition of net assets:
Capital Paid in............ 139,010 2,809,455 2,664,588 76,781 76,714 85,224 418,053 27,622 65,657
Accumulated net realized
gain (loss) on investments. (7,512) 431,954 170,864 (1,918) (3,031) 2,111 3,338 (604) 170
Undistributed
(distributions in excess
of) net investment income.. 879 1,484 10,269 88 (49) (18) 1,119 3 966
Net unrealized
appreciation/(depreciation)
of:
Investments................ 11,195 753,365 381,124 (1,144) (1,681) 15,128 84,206 (1,719) (1,510)
Foreign currency
translation................ (7,961) (3) (1,441)
Futures contracts.......... 288 (290) (78)
-------- ---------- ---------- ------- ------- -------- -------- ------- -------
Net Assets.................. $143,572 $3,996,258 $3,219,172 $73,807 $71,953 $102,442 $506,426 $25,302 $63,764
======== ========== ========== ======= ======= ======== ======== ======= =======
</TABLE>
See notes to financial statements.
38
<PAGE>
STATEMENT OF OPERATIONS
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
For the period ended June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Fundmental Mid Aggressive Active Core Bond Emerging International
Growth Cap Growth Balanced Bond Portfolio(*) Markets Equity Equity Index
--------- -------------- ---------- -------- ------------ -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest........ $ 516 $ 30 $107 $ 30,458 $ 1 $ 75 $ 187
Dividends (Note
B).............. 3,728 8 60 194 2,011
Securities
lending......... 70 117 77
-------- ------ ---- -------- --- ------- --------
4,314 38 167 30,575 1 269 2,275
Expenses
Investment
advisory fee
(Note C)........ 2,475 73 43 1,026 277 184
Auditors fees... 31 1 1 18 2 8
Custodian fees.. 118 9 14 116 267 165
Fidelity bond
fees............
Legal fees...... 7 4 2
Printing &
mailing fees.... 137 1 1 144 3 42
Trustees fees... 6 4 2
Other fees...... 3 2 3
-------- ------ ---- -------- --- ------- --------
2,777 84 59 1,314 549 406
Less expenses
reimbursed
(Note C)........ 2 9 249 105
-------- ------ ---- -------- --- ------- --------
2,777 82 50 1,314 300 301
-------- ------ ---- -------- --- ------- --------
Net Investment
Income/(Loss).... 1,537 (44) 117 29,261 1 (31) 1,974
REALIZED AND
UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized
gain/(loss) on
sales of
investments..... 118,236 230 (56) (14,036) 3,706 2,495
Increase in
unrealized
appreciation/(depreciation)
of:
Investments..... (40,230) 2,966 78 12,079 (6) (8,156) (16,153)
Foreign
currency
translation..... 145 (8)
Futures......... (177) (468)
-------- ------ ---- -------- --- ------- --------
Net realized and
unrealized
gain/(loss) on
investments..... 78,006 3,196 22 (2,134) (6) (4,305) (14,134)
-------- ------ ---- -------- --- ------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... $ 79,543 $3,152 $139 $ 27,127 $(5) $(4,336) $(12,160)
======== ====== ==== ======== === ======= ========
<CAPTION>
International
Opportunities II
----------------
<S> <C>
INVESTMENT INCOME
Income
Interest........ $ 45
Dividends (Note
B).............. 392
Securities
lending.........
----------------
437
Expenses
Investment
advisory fee
(Note C)........ 109
Auditors fees... 1
Custodian fees.. 33
Fidelity bond
fees............
Legal fees......
Printing &
mailing fees.... 1
Trustees fees...
Other fees......
----------------
144
Less expenses
reimbursed
(Note C)........ 23
----------------
121
----------------
Net Investment
Income/(Loss).... 316
REALIZED AND
UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS
Net realized
gain/(loss) on
sales of
investments..... 2,798
Increase in
unrealized
appreciation/(depreciation)
of:
Investments..... (3,120)
Foreign
currency
translation..... 14
Futures.........
----------------
Net realized and
unrealized
gain/(loss) on
investments..... (308)
----------------
Net
increase/(decrease)
in net assets
resulting from
operations...... $ 8
================
</TABLE>
(*) Commenced investment operations on June 30, 2000.
See notes to financial statements.
39
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
For the period ended June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International Small Cap Global Mid Cap Mid Cap Large Cap Large Cap American Leaders
Equity Growth Balanced Growth Blend Value Value CORE Large Cap (*)
------------- --------- -------- --------- ------- --------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest................... $ 21 $ 138 $ 374 $ 668 $ 7 $ 177 $ 12 $ 1
Dividends (Note B)......... 107 40 168 71 37 2,136 109
Securities lending......... 194 281 19
----- -------- ------- --------- ---- ------- ----- ---
128 372 542 1,020 44 2,332 121 1
Expenses
Investment advisory fee
(Note C)................... 65 947 126 2,216 27 567 30
Auditors fees.............. 6 1 17 10
Custodian fees............. 31 53 39 61 11 58 20
Fidelity bond fees.........
Legal fees................. 2 4 2
Printing & mailing fees.... 1 8 13 6 12 12
Trustees fees.............. 1 4 2
Other fees................. 1 2 1
----- -------- ------- --------- ---- ------- ----- ---
97 1,018 179 2,310 50 640 62
Less expenses reimbursed
(Note C)................... 25 38 19 28
----- -------- ------- --------- ---- ------- ----- ---
72 1,018 141 2,310 31 640 34
----- -------- ------- --------- ---- ------- ----- ---
Net Investment
Income/(Loss)............... 56 (646) 401 (1,290) 13 1,692 87 1
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain on sales
of investments............. 607 14,370 219 73,569 410 3,869 54
Increase in unrealized
appreciation/(depreciation)
of:
Investments................ (972) (13,491) (2,117) (117,620) 439 (9,376) (462)
Foreign currency
translation................ 3 169 (15)
Futures.................... (20)
----- -------- ------- --------- ---- ------- ----- ---
Net realized and unrealized
gain/(loss) on investments. (382) 879 (1,729) (44,051) 849 (5,507) (423)
----- -------- ------- --------- ---- ------- ----- ---
Net increase/(decrease) in
net assets resulting from
operations................. $(326) $ 233 $(1,328) $ (45,341) $862 $(3,815) $(336) $ 1
===== ======== ======= ========= ==== ======= ===== ===
</TABLE>
(*) Commenced investment operations on June 30, 2000.
See notes to financial statements.
40
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
For the period ended June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large/Mid Cap Money Mid Cap Small/Mid Bond Large Cap Small/Mid Cap Small/Mid Cap
Value Market Value Cap Growth Index Aggressive Growth CORE Value
------------- ------- ------- ---------- ------ ----------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest.................. $ 6 $12,570 $ 104 $ 198 $1,484 $ 16 $ 21 $ 6
Dividends (Note B)........ 68 497 335 41 66 37
Securities lending........ 22 43
----- ------- ------ ------- ------ ---- ----- ------
74 12,570 623 576 1,484 57 87 43
Expenses
Investment advisory fee
(Note C).................. 34 510 371 664 31 90 53 34
Auditors fees............. 21 3 6 2 1
Custodian fees............ 13 56 22 39 24 13 42 16
Fidelity bond fees........
Legal fees................ 5 1 1
Printing & mailing fees... 1 20 20 57 31 2 1 1
Trustees fees............. 4 1
Other fees................ 1 1
----- ------- ------ ------- ------ ---- ----- ------
48 617 417 769 88 106 96 51
Less expenses reimbursed
(Note C).................. 11 17 36 6 36 13
----- ------- ------ ------- ------ ---- ----- ------
37 617 417 752 52 100 60 38
----- ------- ------ ------- ------ ---- ----- ------
Net Investment
Income/(Loss).............. 37 11,953 206 (176) 1,432 (43) 27 5
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss)
on sales of investments... 88 4,175 4,031 (387) 360 (272) 918
Increase in unrealized
appreciation/(depreciation)
of:
Investments............... (298) 730 10,711 618 302 635 297
Foreign currency
translation...............
Futures................... (7)
----- ------- ------ ------- ------ ---- ----- ------
Net realized and
unrealized gain/(loss) on
investments............... (210) 4,905 14,742 231 662 356 1,215
----- ------- ------ ------- ------ ---- ----- ------
Net increase/(decrease) in
net assets resulting from
operations................ $(173) $11,953 $5,111 $14,566 $1,663 $619 $ 383 $1,220
===== ======= ====== ======= ====== ==== ===== ======
</TABLE>
See notes to financial statements.
41
<PAGE>
STATEMENT OF OPERATIONS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
For the period ended June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Real Estate Growth & Short-Term Small Cap International Equity High Yield Global
Equity Income Managed Bond Value Opportunities Index Bond Bond
----------- --------- --------- ---------- --------- ------------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Interest............ $ 80 $ 1,595 $ 41,712 $2,351 $ 43 $ 157 $ 26 $ 982 $ 1,826
Dividends (Note B).. 3,228 23,833 11,766 794 690 3,047 3
Securities lending.. 170 275 2 22 14
------- --------- --------- ------ ---- ------- ------- ------- -------
3,308 25,598 53,753 2,353 837 869 3,073 985 1,840
Expenses
Investment advisory
fee (Note C)........ 388 4,969 5,229 105 275 397 315 70 227
Auditors fees....... 9 115 79 1 2 3 27 1 2
Custodian fees...... 38 404 338 5 27 105 134 24 29
Fidelity bond fees.. 2 1
Legal fees.......... 2 26 18 1 1 6
Printing & mailing
fees................ 14 341 351 29 8 15 55 15 4
Trustees fees....... 1 23 15 1 1 5
Other fees.......... 10 7 8
------- --------- --------- ------ ---- ------- ------- ------- -------
452 5,890 6,038 140 314 522 550 110 262
Less expenses
reimbursed (Note
C).................. 4 78 29 4
------- --------- --------- ------ ---- ------- ------- ------- -------
452 5,890 6,038 140 310 444 550 81 258
------- --------- --------- ------ ---- ------- ------- ------- -------
Net Investment
Income............... 2,856 19,708 47,715 2,213 527 425 2,523 904 1,582
REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized
gain/(loss) on sales
of investments...... (2,036) 359,891 128,528 (358) 605 2,219 4,203 (326) 1,493
Increase in
unrealized
appreciation/(depreciation)
of:
Investments......... 15,745 (404,282) (127,641) 249 (254) (6,402) (7,451) (930) 1,848
Foreign currency
translation......... (14,327) 2 (2,715)
Futures............. 287 (645) (167)
------- --------- --------- ------ ---- ------- ------- ------- -------
Net realized and
unrealized
gain/(loss) on
investments......... 13,709 (44,391) (13,153) (109) 351 (4,181) (3,893) (1,256) 459
------- --------- --------- ------ ---- ------- ------- ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations.......... $16,565 $ (24,683) $ 34,562 $2,104 $878 $(3,756) $(1,370) $ (352) $ 2,041
======= ========= ========= ====== ==== ======= ======= ======= =======
</TABLE>
See notes to financial statements.
42
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large Cap Growth Fundamental Mid Cap Growth Aggressive Balanced
------------------------- -------------------------------- --------------------------------
Unaudited Unaudited Unaudited
Six-Month Six-Month Period from Six-Month Period from
Period Ended Year Ended Period Ended August 31, 1999 (*) Period Ended August 31, 1999 (*)
June 30, December 31, June 30, to December 31, June 30, to December 31,
2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 1,537 $ 4,048 $ (44) $ (11) $ 117 $ 60
Net realized
gain/(loss) on
sales of
investments..... 118,236 246,459 230 786 (56) 73
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... (40,230) 20,524 2,966 2,179 78 615
Foreign
currency
translation....
Futures........
---------- ---------- ------- ------ ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations..... 79,543 271,031 3,152 2,954 139 748
Distributions to
Shareholders
From:
Net investment
income.......... (1,660) (3,925) (121) (56)
In excess of net
investment
income..........
Realized gain on
investments..... (208,789) (516) (39)
In excess of
realized gain...
Capital paid in.
---------- ---------- ------- ------ ------- -------
Decrease in net
assets
resulting from
distributions... (1,660) (212,714) (516) (121) (95)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 125,330 154,558 20,541 6,365 2,842 11,694
Distributions
reinvested...... 1,660 212,714 516 121 95
Payment for
shares redeemed. (92,461) (169,880) (1,039) (144) (120) (559)
---------- ---------- ------- ------ ------- -------
Increase/(decrease)
from trust
share
transactions.... 34,529 197,392 19,502 6,737 2,843 11,230
---------- ---------- ------- ------ ------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 112,412 255,709 22,654 9,175 2,861 11,883
NET ASSETS
Beginning of
Period.......... 1,382,473 1,126,764 9,175 11,883
---------- ---------- ------- ------ ------- -------
End of Period... $1,494,885 $1,382,473 $31,829 $9,175 $14,744 $11,883
========== ========== ======= ====== ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 4,559 5,540 1,296 608 273 1,164
Reinvested...... 60 8,043 41 12 9
Redeemed........ (3,401) (6,019) (60) (13) (12) (54)
---------- ---------- ------- ------ ------- -------
Net
increase/(decrease)
in shares
outstanding...... 1,218 7,564 1,236 636 273 1,119
========== ========== ======= ====== ======= =======
<CAPTION>
Active Bond
------------------------
Unaudited
Six-Month
Period Ended Year Ended
June 30, December
2000 31, 1999
------------ -----------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 29,261 $ 61,745
Net realized
gain/(loss) on
sales of
investments..... (14,036) (25,838)
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... 12,079 (44,681)
Foreign
currency
translation....
Futures........ (177) 177
------------ -----------
Net
increase/(decrease)
in net assets
resulting from
operations..... 27,127 (8,597)
Distributions to
Shareholders
From:
Net investment
income.......... (25,528) (65,478)
In excess of net
investment
income..........
Realized gain on
investments.....
In excess of
realized gain...
Capital paid in.
------------ -----------
Decrease in net
assets
resulting from
distributions... (25,528) (65,478)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 44,779 86,852
Distributions
reinvested...... 25,528 65,478
Payment for
shares redeemed. (100,569) (135,090)
------------ -----------
Increase/(decrease)
from trust
share
transactions.... (30,262) 17,240
------------ -----------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... (28,663) (56,835)
NET ASSETS
Beginning of
Period.......... 850,286 907,121
------------ -----------
End of Period... $ 821,623 $ 850,286
============ ===========
Analysis of Trust
Share
Transactions:
Sold............ 4,913 9,038
Reinvested...... 2,806 6,931
Redeemed........ (11,036) (14,198)
------------ -----------
Net
increase/(decrease)
in shares
outstanding...... (3,317) 1,771
============ ===========
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
43
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Core Bond Emerging Markets Equity International Equity Index
----------------- ----------------------------- -----------------------------
Unaudited
Period from Unaudited Unaudited
June 30, 2000 (*) Six-Month Period Year Ended Six-Month Period Year Ended
to June 30, Ended June 30, December 31, Ended June 30, December 31,
2000 2000 1999 2000 1999
----------------- ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 1 $ (31) $ 27 $ 1,974 $ 2,404
Net realized
gain/(loss) on
sales of
investments..... 3,706 1,607 2,495 4,750
Change in net
unrealized
appreciation/(depreciation)
of
Investments.... (6) (8,156) 9,598 (16,153) 48,346
Foreign
currency
translation.... 145 (142) (8) (133)
Futures........ (468) 517
------ -------- -------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations..... (5) (4,336) 11,090 (12,160) 55,884
Distributions to
Shareholders
From:
Net investment
income.......... (17) (1,997) (2,382)
In excess of net
investment
income.......... (44)
Realized gain on
investments..... (250) (4,633)
In excess of
realized gain... (936) (583)
Capital paid in.
------ -------- -------- -------- --------
Decrease in net
assets
resulting from
distributions... (1,247) (1,997) (7,598)
Capital
Contribution 445
Trust Share
Transactions
Proceeds from
shares sold..... 5,000 43,546 29,538 34,827 62,080
Distributions
reinvested...... 1,247 1,997 7,598
Payment for
shares redeemed. (23,334) (15,787) (36,271) (47,084)
------ -------- -------- -------- --------
Increase from
trust share
transactions.... 5,000 20,212 14,998 553 22,594
------ -------- -------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 4,995 15,876 25,286 (13,604) 70,880
NET ASSETS
Beginning of
Period.......... 0 32,596 7,310 244,017 173,137
------ -------- -------- -------- --------
End of Period... $4,995 $ 48,472 $ 32,596 $230,413 $244,017
====== ======== ======== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 500 3,522 3,232 1,871 3,668
Reinvested...... 113 108 428
Redeemed........ (1,935) (1,719) (1,941) (2,802)
------ -------- -------- -------- --------
Net
increase/(decrease)
in shares
outstanding...... 500 1,587 1,626 38 1,294
====== ======== ======== ======== ========
<CAPTION>
International Opportunities
II
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2000 1999
---------------- ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 316 $ 168
Net realized
gain/(loss) on
sales of
investments..... 2,798 (24)
Change in net
unrealized
appreciation/(depreciation)
of
Investments.... (3,120) 4,008
Foreign
currency
translation.... 14
Futures........
---------------- ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 8 4,152
Distributions to
Shareholders
From:
Net investment
income.......... (298) (122)
In excess of net
investment
income.......... (65)
Realized gain on
investments.....
In excess of
realized gain...
Capital paid in.
---------------- ------------
Decrease in net
assets
resulting from
distributions... (298) (187)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 6,306 4,747
Distributions
reinvested...... 298 187
Payment for
shares redeemed. (2,523) (1,869)
---------------- ------------
Increase from
trust share
transactions.... 4,081 3,065
---------------- ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 3,791 7,030
NET ASSETS
Beginning of
Period.......... 22,311 15,281
---------------- ------------
End of Period... $26,102 $22,311
================ ============
Analysis of Trust
Share
Transactions:
Sold............ 521 447
Reinvested...... 25 18
Redeemed........ (211) (174)
---------------- ------------
Net
increase/(decrease)
in shares
outstanding...... 335 291
================ ============
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
44
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
International Equity Small Cap Growth Global Balanced
----------------------------------- ----------------------------- -----------------------------
Unaudited Period from Unaudited Unaudited
Six-Month Period August 31, 1999(*) Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, to December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
---------------- ------------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 56 $ 7 $ (646) $ (679) $ 401 $ 813
Net realized
gain on sales of
investments..... 607 190 14,370 24,283 219 1,839
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... (972) 1,953 (13,491) 41,804 (2,117) (519)
Foreign
currency
translation.... 3 169 (606)
Futures........ (20) 20
------- ------- -------- -------- ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations..... (326) 2,170 233 65,408 (1,328) 1,527
Distributions to
Shareholders
From:
Net investment
income.......... (30) (12) (419) (565)
In excess of net
investment
income..........
Realized gain on
investments..... (175) (21,491) (1,836)
In excess of
realized gain...
Capital paid in. (230)
------- ------- -------- -------- ------- -------
Decrease in
net assets
resulting from
distributions.. (30) (187) (21,491) (419) (2,631)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 2,306 10,447 163,193 66,717 5,133 6,406
Distributions
reinvested...... 30 187 21,491 419 2,631
Payment for
shares redeemed. (270) (11) (52,064) (27,404) (4,868) (6,772)
------- ------- -------- -------- ------- -------
Increase from
trust share
transactions.... 2,066 10,447 111,129 60,804 684 2,265
------- ------- -------- -------- ------- -------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 1,710 12,430 111,362 104,721 (1,063) 1,161
NET ASSETS
Beginning of
Period.......... 12,430 0 179,570 74,849 31,577 30,416
------- ------- -------- -------- ------- -------
End of Period... $14,140 $12,430 $290,932 $179,570 $30,514 $31,577
======= ======= ======== ======== ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 195 1,024 7,726 4,233 510 590
Reinvested...... 3 17 1,245 42 251
Redeemed........ (23) (1) (2,693) (1,847) (479) (625)
------- ------- -------- -------- ------- -------
Net increase in
shares
outstanding...... 175 1,040 5,033 3,631 73 216
======= ======= ======== ======== ======= =======
<CAPTION>
Mid Cap Growth
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2000 1999
---------------- ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ (1,290) $ (1,351)
Net realized
gain on sales of
investments..... 73,569 55,989
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... (117,620) 148,557
Foreign
currency
translation.... (33)
Futures........
---------------- ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... (45,341) 203,162
Distributions to
Shareholders
From:
Net investment
income..........
In excess of net
investment
income..........
Realized gain on
investments..... (46,186)
In excess of
realized gain...
Capital paid in.
---------------- ------------
Decrease in
net assets
resulting from
distributions.. (46,186)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 221,650 192,846
Distributions
reinvested...... 46,186
Payment for
shares redeemed. (61,458) (37,156)
---------------- ------------
Increase from
trust share
transactions.... 160,192 201,876
---------------- ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 114,851 358,852
NET ASSETS
Beginning of
Period.......... 452,937 94,085
---------------- ------------
End of Period... $567,788 $452,937
================ ============
Analysis of Trust
Share
Transactions:
Sold............ 7,143 9,353
Reinvested...... 1,749
Redeemed........ (2,373) (1,830)
---------------- ------------
Net increase in
shares
outstanding...... 4,770 9,272
================ ============
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
45
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Mid Cap Large Cap
Blend Value
------------------------------------ -----------------------------
Unaudited Period from Unaudited
Six-Month Period August 31, 1999 (*) Six-Month Period Year Ended
Ended June 30, to December 31, Ended June 30, December 31,
2000 1999 2000 1999
---------------- ------------------- ---------------- ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations:
Net investment
income.......... $ 13 $ 14 $ 1,692 $ 2,774
Net realized
gain on sales of
investments..... 410 268 3,869 7,671
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... 439 306 (9,376) (7,556)
Foreign
currency
translation....
Futures........
------ ------ -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations..... 862 588 (3,815) 2,889
Distributions to
Shareholders
From:
Net investment
income.......... (14) (13) (1,733) (2,733)
In excess of net
investment
income..........
Realized gain on
investments..... (204) (7,756)
In excess of
realized gain... (28)
Capital paid in..
------ ------ -------- --------
Decrease in net
assets
resulting from
distributions... (14) (217) (1,733) (10,517)
Capital
Contribution.....
Trust Share
Transactions
Proceeds from
shares sold..... 3,331 5,275 30,738 64,676
Distributions
reinvested...... 14 217 1,733 10,517
Payment for
shares redeemed. (255) (53) (23,885) (35,081)
------ ------ -------- --------
Increase from
trust share
transactions.... 3,090 5,439 8,586 40,112
------ ------ -------- --------
NET INCREASE IN
NET ASSETS....... 3,938 5,810 3,038 32,484
NET ASSETS:
Beginning of
Period.......... 5,810 0 155,849 123,365
------ ------ -------- --------
End of Period... $9,748 $5,810 $158,887 $155,849
====== ====== ======== ========
Analysis of Trust
Share
Transactions:
Sold............ 285 526 2,357 4,383
Reinvested...... 1 22 135 774
Redeemed........ (22) (5) (1,852) (2,404)
------ ------ -------- --------
Net increase in
shares
outstanding...... 264 543 640 2,753
====== ====== ======== ========
<CAPTION>
Large Cap American Leaders
Value CORE Large Cap
------------------------------------ -----------------
Unaudited Period from Unaudited
Six-Month Period August 31, 1999 (*) Period from
Ended June 30, to December 31, June 30, 2000 (*)
2000 1999 to June 30, 2000
---------------- ------------------- -----------------
<S> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations:
Net investment
income.......... $ 87 $ 21 $ 1
Net realized
gain on sales of
investments..... 54 100
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... (462) 70
Foreign
currency
translation....
Futures........ (15) 8
---------------- ------------------- -----------------
Net
increase/(decrease)
in net assets
resulting from
operations..... (336) 199 1
Distributions to
Shareholders
From:
Net investment
income.......... (88) (19)
In excess of net
investment
income..........
Realized gain on
investments..... (82)
In excess of
realized gain... (4)
Capital paid in.. (9)
---------------- ------------------- -----------------
Decrease in net
assets
resulting from
distributions... (88) (114)
Capital
Contribution.....
Trust Share
Transactions
Proceeds from
shares sold..... 4,426 6,323 5,000
Distributions
reinvested...... 88 114
Payment for
shares redeemed. (140) (151)
---------------- ------------------- -----------------
Increase from
trust share
transactions.... 4,374 6,286 5,000
---------------- ------------------- -----------------
NET INCREASE IN
NET ASSETS....... 3,950 6,371 5,001
NET ASSETS:
Beginning of
Period.......... 6,371 0 0
---------------- ------------------- -----------------
End of Period... $10,321 $6,371 $5,001
================ =================== =================
Analysis of Trust
Share
Transactions:
Sold............ 448 630 500
Reinvested...... 9 12
Redeemed........ (14) (15)
---------------- ------------------- -----------------
Net increase in
shares
outstanding...... 443 627 500
================ =================== =================
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
46
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Large/Mid Cap Value Money Market Mid Cap Value
------------------------------------ ----------------------------- -----------------------------
Unaudited Period from Unaudited Unaudited
Six-Month Period August 31, 1999 (*) Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, to December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
---------------- ------------------- ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss).... $ 37 $ 17 $ 11,953 $ 19,133 $ 206 $ 584
Net realized
gain/(loss) on
sales of
investments...... 88 11 4,175 (2,104)
Change in net unrealized
appreciation/(depreciation) of:
Investments..... (298) 221 730 5,960
Foreign currency
translation.....
Futures.........
------ ------ --------- --------- -------- --------
Net
increase/(decrease)
in net assets
resulting from
operations...... (173) 249 11,953 19,133 5,111 4,440
Distributions to
Shareholders From:
Net investment
income........... (38) (15) (11,953) (19,133) (210) (580)
In excess of net
investment
income...........
Realized gain on
investments...... (11)
In excess of
realized gain.... (4)
Capital paid in..
------ ------ --------- --------- -------- --------
Decrease in net
assets resulting
from
distributions.... (38) (30) (11,953) (19,133) (210) (580)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold...... 2,832 5,905 239,805 557,157 14,918 29,586
Distributions
reinvested....... 38 30 11,953 19,133 210 580
Payment for
shares redeemed.. (299) (53) (285,244) (520,250) (15,366) (36,696)
------ ------ --------- --------- -------- --------
Increase/(decrease)
from trust share
transactions..... 2571 5,882 (33,486) 56,040 (238) (6,530)
------ ------ --------- --------- -------- --------
NET
INCREASE/(DECREASE)
IN NET ASSETS..... 2,360 6,101 (33,486) 56,040 4,663 (2,670)
NET ASSETS
Beginning of
Period........... 6,101 0 451,235 395,195 92,150 94,820
------ ------ --------- --------- -------- --------
End of Period.... $8,461 $6,101 $ 417,749 $ 451,235 $ 96,813 $ 92,150
====== ====== ========= ========= ======== ========
Analysis of Trust
Share
Transactions:
Sold............. 277 588 23,979 55,717 1,131 2,380
Reinvested....... 4 3 1,196 1,913 16 48
Redeemed......... (30) (5) (28,525) (52,025) (1,176) (2,997)
------ ------ --------- --------- -------- --------
Net
increase/(decrease)
in shares
outstanding....... 251 586 (3,350) 5,605 (29) (569)
====== ====== ========= ========= ======== ========
<CAPTION>
Small/Mid Cap Growth
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2000 1999
---------------- ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss).... $ (176) $ (497)
Net realized
gain/(loss) on
sales of
investments...... 4,031 26,575
Change in net unrealized
appreciation/(depreciation) of:
Investments..... 10,711 (17,156)
Foreign currency
translation.....
Futures.........
---------------- ------------
Net
increase/(decrease)
in net assets
resulting from
operations...... 14,566 8,922
Distributions to
Shareholders From:
Net investment
income........... (26,069)
In excess of net
investment
income...........
Realized gain on
investments...... (1,884)
In excess of
realized gain....
Capital paid in..
---------------- ------------
Decrease in net
assets resulting
from
distributions.... (27,953)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold...... 13,128 22,355
Distributions
reinvested....... 27,953
Payment for
shares redeemed.. (23,478) (42,678)
---------------- ------------
Increase/(decrease)
from trust share
transactions..... (10,350) 7,630
---------------- ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS..... 4,216 (11,401)
NET ASSETS
Beginning of
Period........... 181,931 193,332
---------------- ------------
End of Period.... $186,147 $181,931
================ ============
Analysis of Trust
Share
Transactions:
Sold............. 906 1,389
Reinvested....... 2,105
Redeemed......... (1,651) (2,669)
---------------- ------------
Net
increase/(decrease)
in shares
outstanding....... (745) 834
================ ============
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
47
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Bond Index Large Cap Aggressive Growth Small/Mid Cap CORE
----------------------------- ------------------------------------ -----------------------------
Unaudited Unaudited Period from Unaudited
Six-Month Period Year Ended Six-Month Period August 31, 1999 (*) Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, to December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
---------------- ------------ ---------------- ------------------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 1,432 $ 2,119 $ (43) $ (15) $ 27 $ 18
Net realized
gain/(loss) on
sales of
investments..... (387) (186) 360 133 (272) 714
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... 618 (2,724) 302 2,120 635 578
Foreign
currency
translation....
Futures........ (7) 7
------- ------- ------- ------- ------- -------
Net
increase/(decrease)
in net assets
resulting from
operations..... 1,663 (791) 619 2,238 383 1,317
Distributions to
Shareholders
From:
Net investment
income.......... (1,494) (2,057) (26) (18)
In excess of net
investment
income..........
Realized gain on
investments..... (93) (715)
In excess of
realized gain...
Capital paid in.
------- ------- ------- ------- ------- -------
Decrease in net
assets
resulting from
distributions... (1,494) (2,057) (93) (26) (733)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 13,191 14,617 9,683 12,920 11,562 5,301
Distributions
reinvested...... 1,494 2,057 93 26 733
Payment for
shares redeemed. (6,168) (3,391) (449) (84) (3,671) (3,385)
------- ------- ------- ------- ------- -------
Increase from
trust share
transactions.... 8,517 13,283 9,234 12,929 7,917 2,649
------- ------- ------- ------- ------- -------
NET INCREASE IN
NET ASSETS....... 8,686 10,435 9,853 15,074 8,274 3,233
NET ASSETS
Beginning of
Period.......... 38,436 28,001 15,074 0 8,248 5,015
------- ------- ------- ------- ------- -------
End of Period... $47,122 $38,436 $24,927 $15,074 $16,522 $ 8,248
======= ======= ======= ======= ======= =======
Analysis of Trust
Share
Transactions:
Sold............ 1,413 1,516 817 1,262 1,116 557
Reinvested...... 161 213 8 3 80
Redeemed........ (659) (352) (37) (7) (353) (353)
------- ------- ------- ------- ------- -------
Net increase in
shares
outstanding...... 915 1,377 780 1,263 766 284
======= ======= ======= ======= ======= =======
<CAPTION>
Small/Mid Cap Value
------------------------------------
Unaudited Period from
Six-Month Period August 31, 1999 (*)
Ended June 30, to December 31,
2000 1999
---------------- -------------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income/(loss)... $ 5 $ (2)
Net realized
gain/(loss) on
sales of
investments..... 918 190
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... 297 80
Foreign
currency
translation....
Futures........
---------------- -------------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 1,220 268
Distributions to
Shareholders
From:
Net investment
income..........
In excess of net
investment
income..........
Realized gain on
investments..... (185)
In excess of
realized gain...
Capital paid in.
---------------- -------------------
Decrease in net
assets
resulting from
distributions... (185)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 3,675 5,326
Distributions
reinvested...... 185
Payment for
shares redeemed. (226) (24)
---------------- -------------------
Increase from
trust share
transactions.... 3,449 5,487
---------------- -------------------
NET INCREASE IN
NET ASSETS....... 4,669 5,570
NET ASSETS
Beginning of
Period.......... 5,570 0
---------------- -------------------
End of Period... $10,239 $5,570
================ ===================
Analysis of Trust
Share
Transactions:
Sold............ 327 533
Reinvested...... 19
Redeemed........ (21) (2)
---------------- -------------------
Net increase in
shares
outstanding...... 306 550
================ ===================
</TABLE>
(*) Commencement of Operations.
See notes to financial statements.
48
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Real Estate Equity Growth & Income Managed
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
---------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 2,856 $ 8,880 $ 19,708 $ 38,514 $ 47,715 $ 92,042
Net realized
gain/(loss) on
sales of
investments..... (2,036) (5,679) 359,891 516,452 128,528 287,125
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... 15,745 (5,829) (404,282) 38,349 (127,641) (97,986)
Foreign
currency
translation.... (14,327) 11,252
Futures........ 287 (316)
-------- -------- ---------- ---------- ---------- ----------
Net
increase/(decrease)
in net assets
resulting from
operations..... 16,565 (2,628) (24,683) 593,315 34,562 292,117
Distributions to
Shareholders
From:
Net investment
income.......... (3,566) (8,957) (20,326) (37,895) (49,991) (89,766)
In excess of net
investment
income..........
Realized gain on
investments..... (444,028) (236,198)
In excess of
realized gain...
Capital Paid in.
-------- -------- ---------- ---------- ---------- ----------
Decrease in net
assets
resulting from
distributions... (3,566) (8,957) (20,326) (481,923) (49,991) (325,964)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 25,887 19,688 55,836 271,718 37,903 229,925
Distributions
reinvested...... 3,566 8,957 20,326 481,923 49,991 325,964
Payment for
shares redeemed. (25,094) (43,635) (253,736) (316,977) (284,212) (393,033)
-------- -------- ---------- ---------- ---------- ----------
Increase/(decrease)
from trust
share
transactions.... 4,359 (14,990) (177,574) 436,664 (196,318) 162,856
-------- -------- ---------- ---------- ---------- ----------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 17,358 (26,575) (222,583) 548,056 (211,747) 129,009
NET ASSETS
Beginning of
Period.......... 126,214 152,789 4,218,841 3,670,785 3,430,919 3,301,910
-------- -------- ---------- ---------- ---------- ----------
End of Period... $143,572 $126,214 $3,996,258 $4,218,841 $3,219,172 $3,430,919
======== ======== ========== ========== ========== ==========
Analysis of Trust
Share
Transactions:
Sold............ 2,114 1,643 2,868 13,198 2,489 14,370
Reinvested...... 306 756 1,048 24,670 3,305 21,188
Redeemed........ (2,096) (3,662) (13,134) (15,364) (18,796) (24,638)
-------- -------- ---------- ---------- ---------- ----------
Net
increase/(decrease)
in shares
outstanding...... 324 (1,263) (9,218) 22,504 (13,002) 10,920
======== ======== ========== ========== ========== ==========
<CAPTION>
Short-Term Bond
-----------------------------
Unaudited
Six-Month Period Year Ended
Ended June 30, December 31,
2000 1999
---------------- ------------
<S> <C> <C>
INCREASE/(DECREASE)
IN NET ASSETS
From Operations
Net investment
income.......... $ 2,213 $ 4,503
Net realized
gain/(loss) on
sales of
investments..... (358) (1,350)
Change in net
unrealized
appreciation/(depreciation)
of:
Investments.... 249 (1,085)
Foreign
currency
translation....
Futures........
---------------- ------------
Net
increase/(decrease)
in net assets
resulting from
operations..... 2,104 2,068
Distributions to
Shareholders
From:
Net investment
income.......... (2,232) (4,483)
In excess of net
investment
income..........
Realized gain on
investments.....
In excess of
realized gain...
Capital Paid in.
---------------- ------------
Decrease in net
assets
resulting from
distributions... (2,232) (4,483)
Capital
Contribution
Trust Share
Transactions
Proceeds from
shares sold..... 17,431 33,554
Distributions
reinvested...... 2,232 4,483
Payment for
shares redeemed. (14,572) (43,972)
---------------- ------------
Increase/(decrease)
from trust
share
transactions.... 5,091 (5,935)
---------------- ------------
NET
INCREASE/(DECREASE)
IN NET ASSETS.... 4,963 (8,350)
NET ASSETS
Beginning of
Period.......... 68,844 77,194
---------------- ------------
End of Period... $ 73,807 $ 68,844
================ ============
Analysis of Trust
Share
Transactions:
Sold............ 1,798 3,382
Reinvested...... 231 455
Redeemed........ (1,502) (4,438)
---------------- ------------
Net
increase/(decrease)
in shares
outstanding...... 527 (601)
================ ============
</TABLE>
See notes to financial statements.
49
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
Small Cap Value International Opportunities Equity Index
----------------------------- ----------------------------- -----------------------------
Unaudited Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
---------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET
ASSETS
From Operations
Net investment income...... $ 527 $ 501 $ 425 $ 518 $ 2,523 $ 4,679
Net realized gain on sales
of investments............. 605 950 2,219 4,853 4,203 14,409
Change in net unrealized
appreciation/(depreciation)
of:
Investments............... (254) (3,703) (6,402) 15,077 (7,451) 45,659
Foreign currency
translation............... 2 (7)
Futures................... (645) 99
-------- -------- -------- -------- -------- --------
Net increase/(decrease)
in net assets resulting
from operations........... 878 (2,252) (3,756) 20,441 (1,370) 64,846
Distributions to
Shareholders From:
Net investment income...... (609) (419) (376) (565) (2,666) (4,536)
In excess of net investment
income..................... (2)
Realized gain on
investments................ (92) (4,643) (13,884)
In excess of realized gain. (1,087) (180)
Capital paid in............
-------- -------- -------- -------- -------- --------
Decrease in net assets
resulting from
distributions.............. (609) (1,598) (376) (5,389) (2,666) (18,420)
Capital Contribution
Trust Share Transactions
Proceeds from shares sold.. 13,127 26,942 50,541 34,115 94,122 220,255
Distributions reinvested... 609 1,598 376 5,389 2,666 18,420
Payment for shares
redeemed................... (10,952) (19,885) (24,137) (39,012) (37,622) (66,383)
-------- -------- -------- -------- -------- --------
Increase/(decrease) from
trust share transactions... 2,784 8,655 26,780 492 59,166 172,292
-------- -------- -------- -------- -------- --------
NET INCREASE/(DECREASE) IN
NET ASSETS.................. 3,053 4,805 22,648 15,544 55,130 218,718
NET ASSETS
Beginning of Period........ 68,900 64,095 79,794 64,250 451,296 232,578
-------- -------- -------- -------- -------- --------
End of Period.............. $ 71,953 $ 68,900 $102,442 $ 79,794 $506,426 $451,296
======== ======== ======== ======== ======== ========
Analysis of Trust Share
Transactions:
Sold....................... 1,222 2,410 3,447 2,657 4,732 11,477
Reinvested................. 57 152 27 388 134 939
Redeemed................... (1,019) (1,782) (1,685) (3,046) (1,907) (3,495)
-------- -------- -------- -------- -------- --------
Net increase/(decrease) in
shares outstanding.......... 260 780 1,789 (1) 2,959 8,921
======== ======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
50
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS--Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
(000's Omitted)
<TABLE>
<CAPTION>
High Yield Bond Global Bond
----------------------------- -----------------------------
Unaudited Unaudited
Six-Month Period Year Ended Six-Month Period Year Ended
Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET
ASSETS
From Operations
Net investment income...... $ 904 $ 1,357 $ 1,582 $ 3,346
Net realized gain/(loss) on
sales of investments....... (326) (275) 1,493 (178)
Change in net unrealized
appreciation/(depreciation)
of:
Investments............... (930) (223) 1,848 (5,951)
Foreign currency
translation............... (2,715) 1,134
Futures................... (167) 75
------- -------- -------- --------
Net increase/(decrease)
in net assets resulting
from operations........... (352) 859 2,041 (1,574)
Distributions to
Shareholders From:
Net investment income...... (938) (1,323) (1,057) (3,871)
In excess of net investment
income.....................
Realized gain on
investments................
In excess of realized gain.
Capital paid in............
------- -------- -------- --------
Decrease in net assets
resulting from
distributions.............. (938) (1,323) (1,057) (3,871)
Capital Contribution
Trust Share Transactions
Proceeds from shares sold.. 11,710 18,264 6,027 29,103
Distributions reinvested... 938 1,323 1,057 3,871
Payment for shares
redeemed................... (5,977) (13,991) (15,295) (23,329)
------- -------- -------- --------
Increase/(decrease) from
trust share transactions... 6,671 5,596 (8,211) 9,645
------- -------- -------- --------
NET INCREASE/(DECREASE) IN
NET ASSETS.................. 5,381 5,132 (7,227) 4,200
NET ASSETS
Beginning of Period........ 19,921 14,789 70,991 66,791
------- -------- -------- --------
End of Period.............. $25,302 $ 19,921 $ 63,764 $ 70,991
======= ======== ======== ========
Analysis of Trust Share
Transactions:
Sold....................... 1,361 2,003 608 2,816
Reinvested................. 110 146 106 382
Redeemed................... (693) (1,534) (1,548) (2,269)
------- -------- -------- --------
Net increase/(decrease) in
shares outstanding.......... 778 615 (834) 929
======= ======== ======== ========
</TABLE>
See notes to financial statements.
51
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Unaudited Period
Ended June 30,
2000............ $27.33 $0.03 $1.53 $1.56 $(0.03) $ -- $-- $--
Year Ended
December 31,
1999............ 26.19 0.09 6.03 6.12 (0.09) (4.89) -- --
1998............ 20.82 0.14 8.05 8.19 (0.14) (2.68) -- --
1997............ 17.49 0.17 5.21 5.38 (0.17) (1.88) -- --
1996............ 17.37 0.25 2.89 3.14 (0.25) (2.77) -- --
-----------------------------------------------------------------------------------------------------------------------------
Fundmental Mid
Cap Growth
Unaudited Period
Ended June 30,
2000............ 14.42 (0.03) 2.61 2.58 -- -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 (0.02) 5.34 5.32 -- (0.90) -- --
-----------------------------------------------------------------------------------------------------------------------------
Aggressive
Balanced
Unaudited Period
Ended June 30,
2000............ 10.62 0.10 (0.03) 0.07 (0.10) -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.06 0.64 0.70 (0.05) (0.03) -- --
-----------------------------------------------------------------------------------------------------------------------------
Active Bond
Unaudited Period
Ended June 30,
2000............ 9.12 0.32 (0.01) 0.30 (0.28) -- -- --
Year Ended
December 31,
1999............ 9.92 0.67 (0.76) (0.09) (0.71) -- -- --
1998............ 9.95 0.69 0.11 0.80 (0.69) (0.14) -- --
1997............ 9.77 0.71 0.24 0.95 (0.71) (0.06) -- --
1996............ 10.13 0.69 (0.31) 0.38 (0.69) (0.05) -- --
-----------------------------------------------------------------------------------------------------------------------------
Core Bond
Unaudited Period
from June30, to
June 30,
2000(c)......... 10.00 0.00 (0.01) (0.01) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Growth
Unaudited Period
Ended June 30,
2000............ $(0.03) $28.86 51,798 5.71%(d) $1,494,885 0.39%(d) 0.22%(d) 53.61%(e)
Year Ended
December 31,
1999............ (4.98) 27.33 50,580 24.07% 1,382,473 0.39% 0.33% 37.42%
1998............ (2.82) 26.19 43,016 39.51% 1,126,764 0.41% 0.59% 56.41%
1997............ (2.05) 20.82 36,236 30.89% 754,398 0.44% 0.86% 83.82%
1996............ (3.02) 17.49 29,965 18.27% 524,145 0.44% 1.35% 135.98%
-----------------------------------------------------------------------------------------------------------------------------
Fundmental Mid
Cap Growth
Unaudited Period
Ended June 30,
2000............ -- 17.00 1,872 17.90%(e) 31,829 0.94%(d)(1) (0.51)%(d) 86.25%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.90) 14.42 636 54.57%(e) 9,175 0.95%(d)(1) (0.55)%(d) 61.66%(e)
-----------------------------------------------------------------------------------------------------------------------------
Aggressive
Balanced
Unaudited Period
Ended June 30,
2000............ (0.10) $10.59 1,392 0.68%(e) 14,744 0.77%(d)(2) 1.83%(d) 98.56%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.08) 10.62 1,119 7.09%(e) 11,883 0.78%(d)(2) 1.68%(d) 70.28%(e)
-----------------------------------------------------------------------------------------------------------------------------
Active Bond
Unaudited Period
Ended June 30,
2000............ (0.28) 9.15 89,883 3.36%(e) 821,623 0.32%(d) 7.09%(d) 118.15%(e)
Year Ended
December 31,
1999............ (0.71) 9.12 93,200 (0.94)% 850,286 0.28% 6.97% 182.90%
1998............ (0.83) 9.92 91,429 8.23% 907,121 0.29% 6.84% 228.74%
1997............ (0.77) 9.95 80,789 10.11% 803,770 0.31% 7.18% 138.29%
1996............ (0.74) 9.77 74,315 4.10% 726,111 0.29% 7.07% 119.12%
-----------------------------------------------------------------------------------------------------------------------------
Core Bond
Unaudited Period
from June30, to
June 30,
2000(c)......... -- 9.99 500 (0.10)%(e) 4,995 0.80%(d)(a) 5.80%(d) -- (e)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
52
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Emerging Markets
Unaudited Period
Ended June 30,
2000............ $12.26 $0.02 $(0.82) $(0.80) $ -- $ -- $ -- $ --
Year Ended
December 31,
1999............ 7.09 0.03 5.67 5.70 (0.01) (0.10) (0.42) --
Period from May
1, to December
31, 1998 (c).... 10.00 0.03 (2.91) (2.88) (0.02) -- -- (0.01)
-----------------------------------------------------------------------------------------------------------------------------
International
Equity Index
Unaudited Period
Ended June 30,
2000............ 19.64 0.16 (1.15) (0.99) (0.16) -- -- --
Year Ended
December 31,
1999............ 15.56 0.21 4.51 4.72 (0.21) (0.43) (0.05) --
1998............ 15.20 0.24 2.91 3.14 (0.23) (2.55) -- --
1997............ 16.83 0.13 (0.97) (0.84) (0.13) (0.66) -- --
1996............ 15.61 0.21 1.22 1.43 (0.21) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
International
Opportunities II
Unaudited Period
Ended June 30,
2000............ 12.13 0.14 (0.12) 0.02 (0.14) -- -- --
Year ended
Deccember 31,
1999............ 9.87 0.10 2.27 2.37 (0.07) -- (0.04) --
Period from May
1, to December
31, 1998 (c).... 10.00 0.07 (0.13) (0.06) (0.07) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
International
Equity
Unaudited Period
Ended June 30,
2000............ 11.95 0.02 (0.32) (0.29) (0.02) -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.01 2.12 2.13 (0.01) (0.17) -- --
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Emerging Markets
Unaudited Period
Ended June 30,
2000............ $ -- $11.46 4,245 (6.89)%(e) $48,472 1.31%(d)(i) (0.14)%(d) 55.81%(e)
Year Ended
December 31,
1999............ (0.53) 12.26 2,658 81.37%(t) 32,596 1.39%(i) 0.19% 196.32%
Period from May
1, to December
31, 1998 (c).... (0.03) 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,
2000............ (0.16) 18.49 12,459 (5.04)%(e) 230,413 0.30%(d)(a) 1.97%(d) 4.89%(e)
Year Ended
December 31,
1999............ (0.64) 19.64 12,421 30.87% 244,017 0.31%(g) 1.26% 19.01%
1998............ (2.78) 15.56 11,127 20.82% 173,137 0.56%(g) 1.45% 158.63%
1997............ (0.79) 15.20 10,024 (5.03)% 152,359 0.79% 0.78% 83.13%
1996............ (0.21) 16.83 9,254 9.19% 155,753 0.76% 1.30% 92.03%
-----------------------------------------------------------------------------------------------------------------------------
International
Opportunities II
Unaudited Period
Ended June 30,
2000............ (0.14) 12.01 2,174 0.14%(e) 26,102 0.99%(d)(w) 2.59%(d) 83.11%(e)
Year ended
Deccember 31,
1999............ (0.11) 12.13 1,839 24.19% 22,311 1.04%(w) 0.96% 49.51%
Period from May
1, to December
31, 1998 (c).... (0.07) 9.87 1,548 (0.55)%(e) 15,281 1.15%(d)(w) 1.11%(d) 33.17%(e)
-----------------------------------------------------------------------------------------------------------------------------
International
Equity
Unaudited Period
Ended June 30,
2000............ (0.02) 11.63 1,215 (2.45)%(e) 14,140 1.09%(d)(3) 0.85%(d) 51.28%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.18) 11.95 1,040 21.49%(e) 12,430 1.10%(d)(3) 0.21%(d) 26.76%(e)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
53
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small Cap Growth
Unaudited Period
Ended June 30,
2000............ $19.12 $(0.25) $ 1.30 $ 1.05 $ -- $ -- $ -- $ --
Year ended
Deccember 31,
1999............ 12.99 (0.21) 9.06 8.85 -- (2.72) -- --
1998............ 11.34 (0.05) 1.70 1.65 -- -- -- --
1997............ 9.93 (0.02) 1.44 1.42 -- -- -- (0.01)
Period from May
1, to December
31, 1996 (c).... 10.00 0.01 (0.06) (0.05) (0.02) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Global Balanced
Unaudited Period
Ended June 30,
2000............ 10.71 0.14 (0.61) (0.46) (0.14) -- -- --
Year ended
Deccember 31,
1999............ 11.12 0.29 0.25 0.54 (0.29) (0.44) (0.16) (0.06)
1998............ 10.11 0.34 1.44 1.78 (0.34) (0.42) -- (0.01)
1997............ 10.39 0.33 (0.05) 0.28 (0.33) (0.22) -- (0.01)
Period from May
1, to December
31, 1996 (c).... 10.00 0.24 0.41 0.65 (0.24) (0.02) -- --
-----------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period
Ended June 30,
2000............ 29.22 (0.27) (0.94) (1.21) -- -- -- --
Year ended
Deccember 31,
1999............ 15.12 (0.19) 17.70 17.51 -- (3.41) -- --
1998............ 11.93 (0.09) 4.75 4.66 -- (1.32) -- (0.15)
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) -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Unaudited Period
Ended June 30,
2000............ 10.70 0.02 1.38 1.40 (0.02) -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.03 1.10 1.13 (0.03) (0.40) -- --
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small Cap Growth
Unaudited Period
Ended June 30,
2000............ $ -- $20.17 14,427 5.50%(e) 290,932 0.94%(d) (0.60)%(d) 57.09%(e)
Year ended
Deccember 31,
1999............ (2.72) 19.12 9,394 70.38% 179,570 0.89% (0.70)% 113.11%
1998............ -- 12.99 5,763 14.49% 74,849 1.00%(k) (0.65)% 101.16%
1997............ (0.01) 11.34 4,298 14.26% 48,761 1.00%(k) (0.28)% 86.23%
Period from May
1, to December
31, 1996 (c).... (0.02) 9.93 2,077 (0.50)%(e) 20,633 1.00%(d)(k) 0.12%(d) 50.93%(e)
-----------------------------------------------------------------------------------------------------------------------------
Global Balanced
Unaudited Period
Ended June 30,
2000............ (0.14) 10.10 3,023 (4.38)%(e) 30,515 1.10%(d)(l) 3.19%(d) 30.33%(e)
Year ended
Deccember 31,
1999............ (0.95) 10.71 2,950 5.11% 31,577 1.00%(l) 2.73% 131.21%
1998............ (0.77) 11.12 2,734 17.99% 30,416 1.10%(l) 3.20% 103.55%
1997............ (0.56) 10.11 2,514 2.65% 25,420 1.10%(l) 3.18% 81.04%
Period from May
1, to December
31, 1996 (c).... (0.26) 10.39 2,319 6.73%(e) 24,098 1.10%(d)(l) 3.59%(d) 2.21%(e)
-----------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth
Unaudited Period
Ended June 30,
2000............ -- 28.01 20,266 (4.15)%(e) 567,788 0.84%(d) (0.47)%(d) 89.18%(e)
Year ended
Deccember 31,
1999............ (3.41) 29.22 15,496 118.31% 452,937 0.93% (0.68)% 106.06%
1998............ (1.47) 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%(m) (0.26)% 124.04%
Period from May
1, to December
31, 1996 (c).... (0.05) 10.22 1,613 2.69%(e) 16,492 1.10%(d)(m) 0.92%(d) 71.25%(e)
-----------------------------------------------------------------------------------------------------------------------------
Mid Cap Blend
Unaudited Period
Ended June 30,
2000............ (0.02) 12.08 807 13.06%(e) 9,748 0.85%(d)(4) 0.36%(d) 82.58%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.43) 10.70 543 11.53%(e) 5,810 0.85%(d)(4) 0.82%(d) 55.68%(e)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
54
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value
Unaudited Period
Ended June 30,
2000............ $13.49 $0.14 $(0.46) $(0.31) $(0.14) $ -- $ -- $ --
Year ended
Deccember 31,
1999............ 14.02 0.27 0.18 0.45 (0.27) (0.71) -- --
1998............ 13.57 0.28 0.96 1.24 (0.28) (0.51) -- --
1997............ 11.09 0.29 2.84 3.13 (0.29) (0.36) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.16 1.22 1.38 (0.16) (0.13) -- --
---------------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Unaudited Period
Ended June 30,
2000............ 10.16 0.09 (0.51) (0.42) (0.09) -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.04 0.31 0.35 (0.03) (0.14) (0.01) (0.01)
---------------------------------------------------------------------------------------------------------------------------
American Leaders
Large Cap Value
Unaudited Period
from June 29, to
June 30,
2000(c)......... 10.00 -- -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Large/Mid Cap
Value
Unaudited Period
Ended June 30,
2000............ 10.42 0.05 (0.30) (0.25) (0.05) -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 0.03 0.45 0.48 (0.03) (0.02) (0.01) --
---------------------------------------------------------------------------------------------------------------------------
Money Market
Unaudited Period
Ended June 30,
2000............ 10.00 0.29 -- 0.29 (0.29) -- -- --
Year ended
Deccember 31,
1999............ 10.00 0.45 -- 0.45 (0.45) -- -- --
1998............ 10.00 0.53 -- 0.53 (0.53) -- -- --
1997............ 10.00 0.53 -- 0.53 (0.53) -- -- --
1996............ 10.00 0.52 -- 0.52 (0.52) -- -- --
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- ---------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value
Unaudited Period
Ended June 30,
2000............ $(0.14) $13.03 12,192 (2.32)%(e) $158,887 0.82%(d) 2.17%(d) 26.22%(e)
Year ended
Deccember 31,
1999............ (0.98) 13.49 11,552 3.28% 155,849 0.85% 1.88% 32.62%
1998............ (0.79) 14.02 8,799 9.26% 123,365 0.92% 2.08% 18.46%
1997............ (0.65) 13.57 5,399 28.56% 73,269 1.00%(n) 2.42% 19.21%
Period from May
1, to December
31, 1996 (c).... (0.29) 11.09 1,784 13.90% 19,781 1.00%(n) 2.74% 19.95%(e)
---------------------------------------------------------------------------------------------------------------------------
Large Cap Value
CORE
Unaudited Period
Ended June 30,
2000............ (0.09) 9.64 1,070 (4.18)%(e) 10,321 0.85%(d)(5) 2.16%(d) 43.09%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.19) 10.16 627 3.58%(e) 6,371 0.85%(d)(5) 1.13%(d) 30.90%(e)
---------------------------------------------------------------------------------------------------------------------------
American Leaders
Large Cap Value
Unaudited Period
from June 29, to
June 30,
2000(c)......... -- 10.00 500 0.02%(e) 5,001 0.90%(d)(10) 4.87%(d) %(e)
---------------------------------------------------------------------------------------------------------------------------
Large/Mid Cap
Value
Unaudited Period
Ended June 30,
2000............ (0.05) 10.11 837 (2.43)%(e) 8,461 1.04%(d)(6) 1.03%(d) 46.12%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.06) 10.42 586 4.72%(e) 6,101 1.05%(d)(6) 0.94%(d) 23.03%(e)
---------------------------------------------------------------------------------------------------------------------------
Money Market
Unaudited Period
Ended June 30,
2000............ (0.29) 10.00 41,775 2.94%(e) 417,749 0.32%(d) 2.94%(d) --
Year ended
Deccember 31,
1999............ (0.45) 10.00 45,124 5.05% 451,235 0.31% 4.95% --
1998............ (0.53) 10.00 39,519 5.40% 395,195 0.31% 5.29% --
1997............ (0.53) 10.00 22,944 5.38% 229,443 0.33% 5.32% --
1996............ (0.52) 10.00 21,324 5.32% 213,235 0.30% 5.20% --
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Value
Unaudited Period
Ended June 30,
2000............ $12.78 $ 0.03 $ 0.70 $ 0.73 $(0.03) $ -- $-- $ --
Year ended
Deccember 31,
1999............ 12.19 0.08 0.59 0.67 (0.08) -- -- --
1998............ 13.87 0.11 (1.68) (1.57) (0.11) -- -- --
1997............ 11.35 0.05 3.59 3.64 (0.05) (1.07) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.04 1.57 1.61 (0.04) (0.22) -- --
----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Growth
Unaudited Period
Ended June 30,
2000............ 14.03 (0.02) 1.22 1.20 -- -- -- --
Year ended
Deccember 31,
1999............ 15.94 (0.07) 0.74 0.67 -- (2.41) -- (0.17)
1998............ 15.39 (0.02) 0.88 0.86 -- (0.31) -- --
1997............ 16.52 0.01 0.56 0.57 (0.01) (1.69) -- --
1996............ 13.18 0.02 3.99 4.01 (0.02) (0.65) -- --
----------------------------------------------------------------------------------------------------------------------------
Bond Index
Unaudited Period
Ended June 30,
2000............ 9.32 (0.33) 0.03 (0.29) (0.33) -- -- --
Year ended
Deccember 31,
1999............ 10.19 0.63 (0.89) (0.26) (0.61) -- -- --
Period from May
1, to December
31, 1998 (c).... 10.00 0.42 0.29 0.71 (0.42) (0.10) -- --
----------------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Unaudited Period
Ended June 30,
2000............ 11.94 (0.03) 0.29 0.26 -- -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 (0.01) 2.03 2.02 -- (0.08) -- --
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------ ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mid Cap Value
Unaudited Period
Ended June 30,
2000............ $(0.03) $13.48 7,183 5.72%(e) $96,813 0.90%(d) 0.44%(d) 96.07%(e)
Year ended
Deccember 31,
1999............ (0.08) 12.78 7,212 5.52% 92,150 0.92% 0.64% 137.06%
1998............ (0.11) 12.19 7,781 (11.33)% 94,820 0.96% 0.93% 173.33%
1997............ (1.12) 13.87 4,686 32.17% 64,973 1.05%(o) 0.53% 93.78%
Period from May
1, to December
31, 1996 (c).... (0.26) 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,
2000............ -- 15.23 12,218 8.56%(e) 186,147 0.85%(h) (0.20)%(d) 48.80%(e)
Year ended
Deccember 31,
1999............ (2.58) 14.03 181,931 5.15% 12,963 0.85% (0.27)% 172.58%
1998............ (0.31) 15.94 193,332 5.61% 12,129 0.89% (0.11)% 162.21%
1997............ (1.70) 15.39 213,612 3.44% 13,884 0.85% 0.09% 331.19%
1996............ (0.67) 16.52 194,108 30.33% 11,749 0.84% 0.18% 217.84%
----------------------------------------------------------------------------------------------------------------------------
Bond Index
Unaudited Period
Ended June 30,
2000............ (0.33) 8.70 5,039 3.93%(e) 47,122 0.25%(d)(x) 6.81%(d) 12.27%(e)
Year ended
Deccember 31,
1999............ (0.61) 9.32 38,436 (2.57)% 4,125 0.29%(x) 6.56% 17.06%
Period from May
1, to December
31, 1998 (c).... (0.52) 10.19 28,001 7.20%(e) 2,748 0.40%(d)(x) 6.17%(d) 21.09%(e)
----------------------------------------------------------------------------------------------------------------------------
Large Cap
Aggressive Growth
Unaudited Period
Ended June 30,
2000............ -- 12.20 2,043 2.22%(e) 24,927 1.03%(d)(7) (0.44)%(d) 35.49%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.08) 11.94 15,074 20.18%(e) 1,263 1.08%(d)(7) (0.39)%(d) 18.97%(e)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
56
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small/Mid Cap
CORE
Unaudited Period
Ended June 30,
2000............ $ 9.82 $0.02 $ 0.47 $ 0.49 $(0.02) $ -- $-- $ --
Year ended
Deccember 31,
1999............ 9.02 0.02 1.77 1.79 (0.03) (0.96) -- --
Period from May
1, to December
31, 1998 (c).... 10.00 -- (0.98) (0.98) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Value
Unaudited Period
Ended June 30,
2000............ 10.13 -- 1.83 1.84 -- -- -- --
Period from
August 31, to
December 31,
1999 (c)........ 10.00 -- 0.49 0.49 -- (0.36) -- --
-----------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended June 30,
2000............ 11.47 0.27 1.27 1.54 (0.33) -- -- --
Year ended
Deccember 31,
1999............ 12.46 0.78 (0.99) (0.21) (0.78) -- -- --
1998............ 15.91 0.77 (3.38) (2.61) (0.70) (0.14) -- --
1997............ 14.64 0.77 1.68 2.45 (0.71) (0.41) -- (0.06)
1996............ 11.70 0.76 2.97 3.73 (0.76) (0.03) -- --
-----------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended June 30,
2000............ 20.01 0.10 (0.09) 0.01 (0.10) -- -- --
Year ended
Deccember 31,
1999............ 19.49 0.20 2.88 3.08 (0.20) (2.36) -- --
1998............ 16.61 0.23 4.75 4.98 (0.23) (1.87) -- --
1997............ 14.65 0.27 4.07 4.34 (0.27) (2.11) -- --
1996............ 13.94 0.34 2.43 2.77 (0.34) (1.72) -- --
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small/Mid Cap
CORE
Unaudited Period
Ended June 30,
2000............ $(0.02) $10.29 1,606 5.00%(e) $16,522 0.90%(d)(y) 0.40%(d) 31.41%(e)
Year ended
Deccember 31,
1999............ (0.99) 9.82 8,248 20.54% 840 0.94%(y) 0.30% 109.12%
Period from May
1, to December
31, 1998 (c).... -- 9.02 5,015 (9.81)%(e) 556 1.05%(d)(y) (0.01)%(d) 60.51%(e)
-----------------------------------------------------------------------------------------------------------------------------
Small/Mid Cap
Value
Unaudited Period
Ended June 30,
2000............ -- 11.97 856 18.14%(e) 10,239 1.05%(8)(d) 0.13%(d) 105.74%(e)
Period from
August 31, to
December 31,
1999 (c)........ (0.36) 10.13 5,570 5.08%(e) 550 1.05%(8)(d) (0.12)%(d) 51.97%(e)
-----------------------------------------------------------------------------------------------------------------------------
Real Estate
Equity
Unaudited Period
Ended June 30,
2000............ (0.33) 12.68 11,324 13.67%(e) 143,572 0.70%(d) 4.40%(d) 16.26%(e)
Year ended
Deccember 31,
1999............ (0.78) 11.47 126,214 (1.69)% 11,000 0.70% 6.38% 12.95%
1998............ (0.84) 12.46 152,789 (16.71)% 12,263 0.69% 5.48% 22.69%
1997............ (1.18) 15.91 204,131 17.22% 12,830 0.69% 5.12% 20.04%
1996............ (0.79) 14.64 151,105 33.07% 10,325 0.69% 6.14% 18.37%
-----------------------------------------------------------------------------------------------------------------------------
Growth & Income
Unaudited Period
Ended June 30,
2000............ (0.10) 19.92 201,605 (0.44)%(e) 3,996,258 0.29%(d) 0.99%(d) 46.78%(e)
Year ended
Deccember 31,
1999............ (2.56) 20.01 210,823 16.23% 4,218,841 0.28% 0.98% 70.16%
1998............ (2.10) 19.49 188,319 30.25% 3,670,785 0.27% 1.24% 48.45%
1997............ (2.38) 16.61 167,773 29.79% 2,785,964 0.28% 1.61% 74.56%
1996............ (2.06) 14.65 139,748 20.10% 2,047,927 0.27% 2.24% 81.02%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
57
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
--------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
--------------------------------------- ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income/(Loss) Investments(a) Operations Income Investments Income/Gains Paid in
--------- ------------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed
Unaudited Period
Ended June 30,
2000............ $15.45 $(0.22) $(0.04) $(0.27) $(0.23) $ -- $ -- $ --
Year ended
Deccember 31,
1999............ 15.64 (0.44) 0.94 1.38 (0.43) (1.14) -- --
1998............ 14.35 0.46 2.43 2.89 (0.46) (1.09) -- (0.05)
1997............ 13.35 0.59 1.86 2.45 (0.59) (0.78) -- (0.08)
1996............ 13.73 0.61 0.81 1.42 (0.61) (1.19) -- --
---------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended June 30,
2000............ 9.72 (0.30) (0.02) (0.32) (0.31) -- -- --
Year ended
Deccember 31,
1999............ 10.05 0.61 (0.33) 0.28 (0.61) -- -- --
1998............ 10.08 0.61 (0.03) 0.58 (0.61) -- -- --
1997............ 10.05 0.59 0.03 0.62 (0.59) -- -- --
1996............ 10.23 0.54 (0.18) 0.36 (0.54) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended June 30,
2000............ 10.92 0.08 0.05 0.13 (0.09) -- -- --
Year ended
Deccember 31,
1999............ 11.59 0.09 (0.50) (0.41) (0.07) (0.01) (0.18) --
1998............ 12.40 0.07 (0.81) (0.74) (0.07) -- -- --
1997............ 10.73 0.08 2.66 2.74 (0.08) (0.99) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.96 1.03 (0.07) (0.23) -- --
---------------------------------------------------------------------------------------------------------------------------
International
Opportunities
Unaudited Period
Ended June 30,
2000............ 15.17 0.06 (0.65) (0.58) (0.05) -- -- --
Year ended
Deccember 31,
1999............ 12.21 0.10 3.95 4.05 (0.11) (0.94) (0.04) --
1998............ 10.63 0.11 1.57 1.68 (0.10) -- -- --
1997............ 10.60 0.10 0.11 0.21 (0.10) (0.08) -- --
Period from May
1, to December
31, 1996 (c).... 10.00 0.07 0.60 0.67 (0.07) -- -- --
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- ------------- ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed
Unaudited Period
Ended June 30,
2000............ $(0.23) $14.95 209,089 1.21%(e) $3,219,172 0.37%(d) 2.93%(d) 102.37%(e)
Year ended
Deccember 31,
1999............ (1.57) 15.45 222,091 9.10% 3,430,919 0.36% 2.75% 203.86%
1998............ (1.60) 15.64 211,171 20.42% 3,301,910 0.36% 2.99% 160.57%
1997............ (1.45) 14.35 195,139 18.72% 2,800,127 0.37% 4.18% 200.41%
1996............ (1.80) 13.35 178,745 10.72% 2,386,660 0.36% 4.41% 113.61%
---------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Unaudited Period
Ended June 30,
2000............ (0.31) 9.09 7,608 3.00%(e) 73,807 0.40%(d) 6.27%(d) 21.81%(e)
Year ended
Deccember 31,
1999............ (0.61) 9.72 7,081 2.96% 68,844 0.43% 6.25% 100.04%
1998............ (0.61) 10.05 7,682 5.82% 77,194 0.53% 6.17% 184.50%
1997............ (0.59) 10.08 5,070 6.41% 51,120 0.57% 5.67% 108.29%
1996............ (0.54) 10.05 5,840 3.61% 58,676 0.75%(j) 5.66% 20.68%
---------------------------------------------------------------------------------------------------------------------------
Small Cap Value
Unaudited Period
Ended June 30,
2000............ (0.09) 10.95 6,571 1.19%(e) 71,953 0.90%(d)(p) 1.52%(d) 58.65%(e)
Year ended
Deccember 31,
1999............ (0.26) 10.92 6,311 (3.43)% 68,900 0.95%(p) 0.78% 117.33%
1998............ (0.07) 11.59 5,531 5.96% 64,095 1.05%(p) 0.63% 100.83%
1997............ (1.07) 12.40 3,488 25.57% 43,261 1.05%(p) 0.68% 126.10%
Period from May
1, to December
31, 1996 (c).... (0.30) 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,
2000............ (0.05) 14.53 7,048 (3.84)%(e) 102,442 0.93%(d)(q) 0.89%(d) 22.77%(e)
Year ended
Deccember 31,
1999............ (1.09) 15.17 5,259 34.01% 79,794 1.02%(q) 0.77% 34.02%
1998............ (0.10) 12.21 5,260 15.92% 64,250 1.16%(q) 0.89% 18.67%
1997............ (0.18) 10.63 2,882 1.95% 30,631 1.22%(q) 0.65% 21.09%
Period from May
1, to December
31, 1996 (c).... (0.07) 10.60 1,689 6.72%(e) 17,898 1.25%(d)(q) 0.87%(d) 5.46%(e)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
58
<PAGE>
FINANCIAL HIGHLIGHTS
JOHN HANCOCK VARIABLE SERIES TRUST I
-------------------------------------------------------------------------------
Selected data for each share of beneficial interest outstanding throughout the
year end indicated:
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------ ------------ ----------------------------------------
Net Realized
Net Asset and Distribution Distribution Distribution
Value at Net Unrealized Total From From Net From Net in Excess of Distribution
Beginning Investment Gain/(Loss) on Investment Investment Gains on Net Investment From Capital
of Period Income Investments(a) Operations Income Investments Income/Gains Paid in
--------- ---------- -------------- ---------- ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Index
Unaudited Period
Ended June 30,
2000............ $20.46 $0.11 $(0.21) $(0.10) $(0.11) $ -- $-- $ --
Year ended
Deccember 31,
1999............ 17.70 0.27 3.41 3.68 (0.26) (0.66) -- --
1998............ 14.21 0.25 3.76 4.01 (0.24) (0.28) -- --
1997............ 11.10 0.24 3.41 3.65 (0.24) (0.25) -- (0.05)
Period from May
1, to December
31, 1996 (c).... 10.00 0.15 1.26 1.41 (0.15) (0.10) -- (0.06)
-----------------------------------------------------------------------------------------------------------------------------
High Yield Bond
Unaudited Period
Ended June 30,
2000............ 8.99 0.37 (0.54) (0.17) (0.37) -- -- --
Year ended
Deccember 31,
1999............ 9.23 0.72 (0.26) 0.46 (0.70) -- -- --
Period from May
1, to December
31, 1998 (c).... 10.00 0.46 (0.76) (0.30) (0.46) (0.01) -- --
-----------------------------------------------------------------------------------------------------------------------------
Global Bond
Unaudited Period
Ended June 30,
2000............ 9.82 0.24 0.08 0.31 (0.16) -- -- --
Year ended
Deccember 31,
1999............ 10.60 0.48 (0.70) (0.22) (0.56) -- -- --
1998............ 10.24 0.54 0.38 0.92 (0.29) (0.09) -- (0.18)
1997............ 10.16 0.59 0.30 0.89 (0.61) (0.15) -- (0.05)
Period from May
1, to December
31, 1996 (c).... 10.00 0.38 0.28 0.66 (0.38) (0.12) -- --
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Distributions 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
Total End (000's Investment (000's Average Average Turnover
Distributions of Period Omitted) Return(b) Omitted) Net Assets Net Assets Rate
------------- --------- ----------- --------------- ------------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Index
Unaudited Period
Ended June 30,
2000............ $(0.11) $20.24 25,019 (0.50)%(e) $506,426 0.23%(d) 1.07%(d) 15.03%(e)
Year ended
Deccember 31,
1999............ (0.92) 20.46 22,060 21.08% 451,296 0.00%(r) 1.42% 55.24%
1998............ (0.52) 17.70 13,139 28.45% 232,578 0.00%(r) 1.59% 43.31%
1997............ (0.54) 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).... (0.31) 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,
2000............ (0.37) 8.45 2,995 (1.89)%(e) 25,302 0.75%(d)(z) 8.30%(d) 13.11%(e)
Year ended
Deccember 31,
1999............ (0.70) 8.99 2,217 5.13% 19,921 0.80%(z) 7.94% 38.62%
Period from May
1, to December
31, 1998 (c).... (0.47) 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,
2000............ (0.16) 9.97 6,396 3.21%(e) 63,764 0.78%(d)(s) 4.76%(d) 113.22%(e)
Year ended
Deccember 31,
1999............ (0.56) 9.82 7,230 (2.16)% 70,991 0.83%(s) 4.70% 332.06%
1998............ (0.56) 10.60 6,301 9.15% 66,791 0.95%(s) 5.27% 186.70%
1997............ (0.81) 10.24 2,797 9.05% 28,647 1.00%(s) 5.80% 69.38%
Period from May
1, to December
31, 1996 (c).... (0.50) 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 .40% for the period ending
June 30, 2000 and .38% and .63% for the years ended December 31, 1999
and1998, respectively.
(h) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 0.98% for the period ending
June 30, 2000.
59
<PAGE>
(i) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.41% for the period ending
June 30, 2000 and 3.44%, and 3.69% for the years ended December 31, 1999
and 1998, respectively.
(j) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .79% for the year ended
December 31, 1996 respectively.
(k) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.05%, 1.12%, and 1.55%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(l) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.86% for the period ending
June 30, 2000, and 1.31%, 1.82, 1.56%, and 1.44% for the years ended
December 31, 1999, 1998, 1997, and 1996, respectively.
(m) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.13%, 1.42%, and 2.34%, for
the years ended December 31, 1998, 1997, and 1996, respectively.
(n) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.06%, and 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 .91% for the period ending
June 30, 2000 and .96%, 1.08%, 1.30%, and 2.06%, for the years ended
December 31, 1999, 1998, 1997 and 1996, respectively.
(q) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.09% for the period ending
June 30, 2000 and 1.15%, 1.46%, 1.57%, and 2.76%, for the years ended
December 31, 1999, 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 .22%, .34%, .65%, and 1.61%,
for the years ended December 31, 1999, 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 0.80% for the period ending
June 30, 2000 and 1.32%, and 1.57%, for the years ended December 31, 1997,
and 1996, respectively.
(t) Average Commission rate is calculated for funds with fiscal year beginning
on or after September 1, 1995.
(u) The Total Return includes the effect of the capital contribution of $.06
per share. The total Investment Return without the capital contribution
would have been 13.59%.
(v) The Total Return includes the effect of the capital contribution of $.04
per share. The total Investment Return without the capital contribution
would have been 32.47%.
(w) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.47% for the period ending
June 30, 2000 and 1.26%, and 2.47%, for the years ended December 31, 1999,
and 1998, respectively.
(x) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .42% for the period ending
June 30, 2000, and .35%, and .71%, for the years ended December 31, 1999,
and 1998, repectively.
(y) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.44% for the period ending
June 30, 2000 and 2.24%, and 4.55%, for the years ended December 31, 1999,
and 1998, respectively.
(z) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.01% for the period ending
June 30, 2000 and 1.04% , and 2.03%, for the years ended December 31,
1999, and 1998, respectively.
(1) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .97% for the period ending
June 30, 2000, and 1.09% for the year ended December 31, 1999.
(2) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been .92% for the period endig June
30, 2000, and .96% for the year ended December 31, 1999.
(3) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.49% for the period ending
June 30, 2000 and 1.71% for the year ended December 31, 1999.
(4) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.37% for the period ending
June 30, 2000, and 1.20% for the year ended December 31, 1999.
(5) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.55% for the period ending
June 30, 2000, and 1.17% for the year ended December 31, 1999.
(6) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.35% for the period ending
June 30, 2000 and 1.42% for the year ended December 31, 1999.
(7) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 1.09% for the period ending
June 30, 2000 and 1.17% for the year ended December 31, 1999.
(8) 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, 2000 and 1.61% for the year ended December 31, 1999.
(9) Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.37% for the period ending
June 30, 2000.
(10) Expense ratio is net of expense reimbursement. Had such reimbursementnot
been made the expense ratio would have been 2.47% for the period ending
June 30, 2000.
60
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 0.2%
Lear Corp. * ................................. 138,400 $ 2,768
Automobile - 0.3%
General Motors Corp. - Cl. H ................. 45,000 3,949
Banks - 0.3%
Comerica, Inc. ............................... 100,000 4,487
Business Services - 0.6%
Automatic Data Processing, Inc. .............. 47,100 2,523
Electronic Data Systems Corp. ................ 150,000 6,187
--------
8,710
Commercial Services - 1.6%
Convergys Corp. * ............................ 102,500 5,317
Interpublic Group Cos., Inc. ................. 108,300 4,657
Lamar Advertising Co. * ...................... 119,100 5,158
Omnicom Group, Inc. .......................... 96,000 8,550
--------
23,682
Computer Equipment - 14.4%
Compaq Computer Corp. ........................ 263,600 6,738
Comverse Technology, Inc. * .................. 89,400 8,314
Dell Computer Corp. * ........................ 533,600 26,313
Hewlett-Packard Co. .......................... 127,200 15,884
Intel Corp. .................................. 704,900 94,237
International Business Machines Corp. ........ 286,100 31,346
Network Appliance, Inc. * .................... 140,100 11,278
VERITAS Software Corp. * ..................... 181,000 20,456
--------
214,566
Computer Software and Services - 19.3%
Adobe Systems, Inc. .......................... 55,600 7,228
America Online, Inc. * ....................... 507,000 26,744
DST Systems, Inc. * .......................... 66,300 5,047
EMC Corp. * .................................. 496,300 38,184
First Data Corp. ............................. 145,200 7,206
Fiserv, Inc. ................................. 168,200 7,275
Intuit, Inc. * ............................... 201,300 8,329
Microsoft Corp. .............................. 716,200 57,296
Oracle Corp. *................................ 600,300 50,463
Portal Software, Inc. * ...................... 173,800 11,101
Siebel Systems, Inc. * ....................... 80,000 13,085
Sun Microsystems, Inc. * ..................... 402,700 36,620
Yahoo!, Inc. * ............................... 158,200 19,597
---------
288,175
Consumer - Miscellaneous - 0.5%
Black & Decker Corp. ......................... 187,400 7,367
Diversified Operations - 7.9%
Corning, Inc. ................................ 67,200 18,136
El Paso Energy Corp. ......................... 147,800 7,528
General Electric Co. ......................... 1,750,000 92,750
---------
118,414
Electronic Products and Services - 19.3%
Agilent Technologies, Inc. * ................. 149,900 11,055
Altera Corp. * ............................... 85,200 8,685
Anadigics, Inc. * ............................ 130,000 4,428
Analog Devices, Inc. * ....................... 130,900 9,948
Applied Materials, Inc. * .................... 169,400 15,352
Applied Micro Circuits Corp. * ............... 95,400 9,421
Atmel Corp. * ................................ 168,600 6,217
Cisco Systems, Inc. * ........................ 1,690,700 107,465
Jabil Circuit, Inc. * ........................ 82,800 4,109
Lam Research Corp. * ......................... 154,800 5,805
Linear Technology Corp. ...................... 136,800 8,747
LSI Logic Corp. * ............................ 114,300 6,187
Maxim Integrated Products, Inc. * ............ 149,600 10,163
Motorola, Inc. ............................... 156,000 4,534
Novellus Systems, Inc. * ..................... 80,700 4,565
PE Corp-BE Biosystems Group .................. 85,600 5,639
Sanmina Corp. * .............................. 50,000 4,275
SCI Systems, Inc. * .......................... 159,700 6,258
Solectron Corp. * ............................ 163,600 6,851
Teradyne, Inc. * ............................. 65,800 4,836
Texas Instruments, Inc. ...................... 372,900 25,614
Vitesse Semiconductor Corp. * ................ 60,400 4,443
Waters Corp. * ............................... 47,000 5,866
Xilinx, Inc. * ............................... 101,500 8,380
--------
288,843
Financial Services - 1.2%
Citigroup, Inc. .............................. 300,000 18,075
Health Care Products - 12.6%
Allergan, Inc. ............................... 158,700 11,823
American Home Products Corp. ................. 123,300 7,244
Bristol-Myers Squibb Co. ..................... 195,900 11,411
Cardinal Health, Inc. ........................ 97,800 7,237
Cephalon, Inc. * ............................. 69,300 4,149
CV Therapeutics, Inc. * ...................... 48,400 3,355
Eli Lilly & Co. .............................. 163,900 16,369
Merck & Co., Inc. ............................ 351,200 26,911
Pfizer, Inc. ................................. 1,003,100 48,149
Pharmacia Corp. .............................. 290,400 15,010
QLT PhotoTherapeutics, Inc. * ................ 114,700 8,868
Schering-Plough Corp. ........................ 543,200 27,432
--------
187,958
Health Care Services - 0.3%
Wellpoint Health Networks, Inc. * ............ 61,600 4,462
Insurance - 2.2%
Aon Corp. .................................... 200,200 6,219
AXA Financial, Inc. .......................... 265,300 9,020
Hartford Financial Services Group, Inc. ...... 98,200 5,493
Lincoln National Corp. ....................... 179,500 6,485
PartnerRe, Ltd. .............................. 156,000 5,528
---------
32,745
61
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Machinery - 0.4%
Ingersoll-Rand Co. ........................... 151,700 $ 6,106
Media - Publishing - 0.6%
AT&T Corp. - Liberty Media Group - Cl. A * ... 386,800 9,380
Media - TV / Radio - 2.1%
Infinity Broadcasting Corp. - Cl. A * ........ 148,200 5,400
Time Warner, Inc. ............................ 182,400 13,863
Viacom, Inc. - Cl. B * ....................... 173,600 11,837
---------
31,100
Oil and Natural Gas Exploration and Production -
0.2%
Noble Drilling Corp. * ......................... 80,000 3,295
Retail - Department Stores - 5.9%
Circuit City Stores, Inc. .................... 80,100 2,658
Gap, Inc. .................................... 362,500 11,328
Home Depot, Inc. ............................. 487,300 24,335
Lowe's Cos., Inc. ............................ 186,100 7,642
RadioShack Corp. ............................. 91,900 4,354
Tiffany & Co. ................................ 70,000 4,725
TJX Cos., Inc. ............................... 456,600 8,561
Wal-Mart Stores, Inc. ........................ 438,100 25,245
---------
88,848
Retail - Food - 0.2%
Outback Steakhouse, Inc. * ................... 128,200 3,750
Telecommunication Equipment - 6.4%
ADC Telecommunications, Inc. * ............... 119,400 10,015
CIENA Corp. * ................................ 49,200 8,201
JDS Uniphase Corp. * ......................... 200,100 23,987
Lucent Technologies, Inc. .................... 550,000 32,587
Nortel Networks Corp. ........................ 175,000 11,944
RF Micro Devices, Inc. * ..................... 48,100 4,215
Scientific-Atlanta, Inc. ..................... 63,000 4,693
---------
95,642
Telecommunication Services - 2.8%
Clear Channel Communications, Inc. * ......... 104,100 7,808
Sprint PCS (PCS Group) * ..................... 295,000 17,552
WorldCom, Inc. * ............................. 365,900 16,786
---------
42,146
---------
TOTAL COMMON STOCK- 99.3% 1,484,468
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 2.5%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 .......................... $ 38,005 38,005
TOTAL INVESTMENTS- 101.8% 1,522,473
Payables, less Cash and receivables- (1.8)% (27,588)
--------- ---------
NET ASSETS- 100.0% 1,494,885
========= =========
* Non-income producing security.
See notes to financial statements.
62
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
FUNDAMENTAL MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Commercial Services - 4.0%
Celestica, Inc. * ............................ 16,000 $ 794
True North Communications .................... 5,800 255
Young & Rubicam, Inc. ........................ 4,000 229
-------
1,278
Computer Equipment - 2.6%
Foundry Networks, Inc. * ..................... 4,787 529
SanDisk Corp. * .............................. 3,000 184
Silicon Storage Technology, Inc. * ........... 1,500 132
-------
845
Computer Software and Services - 18.4%
Agile Software Corp. * ....................... 1,000 71
Alteon Websystems, Inc. * .................... 5,400 540
Citrix Systems, Inc. * ....................... 500 10
Clarent Corp. * .............................. 1,500 107
E.piphany, Inc. * ............................ 100 11
Exodus Communications, Inc. * ................ 1,300 60
Intertrust Technologies Corp. * .............. 7,500 154
Kana Communications, Inc. * .................. 8,500 526
Mercury Interactive Corp. * .................. 8,300 803
Micromuse, Inc. * ............................ 6,900 1,142
Portal Software, Inc. * ...................... 5,000 319
Rational Software Corp. * .................... 9,300 864
RealNetworks, Inc. * ......................... 6,000 303
Redback Networks, Inc. * ..................... 1,200 214
Research in Motion, Ltd. * ................... 4,000 181
Utstarcom, Inc. .............................. 12,200 371
Vitria Technology, Inc. * .................... 3,000 183
-------
5,859
Electric Power - 2.4%
Calpine Corp. * .............................. 11,800 776
Electronic Products and Services - 24.9%
Amkor Technology, Inc. * ..................... 200 7
Applied Micro Circuits Corp. * ............... 3,500 346
Bookham Technolgy plc ........................ 14,000 830
Flextronics International Ltd. ............... 4,000 275
GlobeSpan, Inc. * ............................ 100 12
Jabil Circuit, Inc. * ........................ 11,000 546
Millipore Corp. .............................. 10,000 754
Newport Corp. ................................ 12,100 1,299
QLogic Corp. * ............................... 7,500 495
Sanmina Corp. * .............................. 9,600 821
SDL, Inc. * .................................. 2,800 799
TranSwitch Corp. * ........................... 7,000 540
Virata, Corp. * .............................. 5,500 328
Vishay Intertechnology, Inc. * ............... 3,750 142
Vitesse Semiconductor Corp. * ................ 3,350 246
Waters Corp. * ............................... 4,000 499
-------
7,939
Food, Beverage and Tobacco - 0.5%
Adolph Coors Co. - Cl. B ..................... 2,500 151
Health Care Products - 4.3%
Abgenix, Inc. * .............................. 5,000 599
Affymetrix, Inc. * ........................... 1,800 297
ImClone Systems, Inc. * ...................... 3,000 230
QLT PhotoTherapeutics, Inc. * ................ 3,000 232
-------
1,358
Machinery - 1.9%
SPX Corp. .................................... 5,000 605
Media - TV / Radio - 2.0%
Hispanic Broadcasting Corp. *................. 12,400 411
TV Guide, Inc. - Cl. A * ..................... 2,000 69
Univision Communications, Inc. - Cl. A * ..... 1,500 155
-------
635
Oil and Natural Gas Exploration and Production -
2.2%
Kinder Morgan, Inc. .......................... 20,000 691
Retail - Department Stores - 7.5%
BJ's Wholesale Club, Inc. .................... 17,000 561
Copper Mountain Networks, Inc. * ............. 10,400 916
Tiffany & Co. ................................ 13,600 918
-------
2,395
Telecommunication Equipment - 11.5%
E-Tek Dynamics, Inc. * ....................... 2,400 633
Efficient Networks, Inc. * ................... 10,750 791
Finisar Corp. * .............................. 17,000 445
Harmonic, Inc. * ............................. 2,256 56
JDS Uniphase Corp. * ......................... 4,454 534
Next Level Communications, Inc. * ............ 1,500 128
RF Micro Devices, Inc. * ..................... 6,400 561
Scientific-Atlanta, Inc. ..................... 6,750 503
-------
3,651
Telecommunication Services - 3.6%
Aether Systems, Inc. * ....................... 5,000 1,025
Aspect Communications Corp. * ................ 100 4
Nextel Partners, Inc. - Cl. A * .............. 3,300 107
-------
1,136
-------
TOTAL COMMON STOCK- 85.8% 27,319
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 13.8%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ....................... $4,374 4,374
TOTAL INVESTMENTS- 99.6% 31,693
Receivables, less Cash and payables- 0.4% 136
------ -------
NET ASSETS- 100.0% 31,829
====== =======
* Non-income producing security.
See notes to financial statements.
63
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.4%
General Dynamics Corp. ....................... 1,200 $ 63
Honeywell International, Inc. ................ 1,400 47
United Technologies Corp. .................... 1,600 94
--------
204
Auto and Truck Parts - 0.0%
Visteon Corp. ................................ 223 3
Automobile - 0.5%
Ford Motor Co. ............................... 1,700 73
Banks - 2.1%
AmSouth Bancorporation ....................... 1,400 22
Bank of America Corp. ........................ 400 17
Comerica, Inc. ............................... 900 40
FleetBoston Financial Corp. .................. 4,500 153
J.P. Morgan & Co., Inc. ...................... 500 55
Suntrust Banks, Inc. ......................... 600 28
---------
315
Business Services - 0.4%
Automatic Data Processing, Inc. .............. 1,100 59
Chemicals - 1.3%
Air Products & Chemicals, Inc. ............... 1,200 37
Dow Chemical Co. ............................. 3,600 109
Praxair, Inc. ................................ 1,200 45
---------
191
Commercial Services - 0.9%
Interpublic Group Cos., Inc. ................. 1,200 52
Omnicom Group, Inc. .......................... 700 62
R.R. Donnelley & Sons Co. .................... 900 20
---------
134
Computer Equipment - 6.5%
Compaq Computer Corp. ....................... 1,700 44
Comverse Technology, Inc. .................... 400 37
Dell Computer Corp. .......................... 2,300 114
Hewlett-Packard Co. .......................... 900 112
Intel Corp. .................................. 2,900 388
International Business Machines Corp. ........ 1,500 164
Network Appliance, Inc. ...................... 300 24
VERITAS Software Corp. ....................... 700 79
---------
962
Computer Software and Services - 8.3%
America Online, Inc. ......................... 1,600 84
Electronic Data Systems Corp. ................ 1,200 50
EMC Corp. .................................... 1,600 123
First Data Corp. ............................. 2,400 119
Intuit, Inc. ................................. 800 33
Microsoft Corp. .............................. 4,400 352
Oracle Corp. ................................. 2,900 244
Siebel Systems, Inc. ......................... 200 33
Sun Microsystems, Inc. ....................... 1,300 118
Yahoo!, Inc. ................................. 600 74
---------
1,230
Consumer - Miscellaneous - 0.8%
Avery Dennison Corp. ......................... 700 47
Black & Decker Corp. ......................... 1,400 55
Sherwin-Williams Co. ......................... 1,100 23
---------
125
Cosmetics and Personal Care Products - 0.2%
Procter & Gamble Co. .......................... 500 29
Diversified Operations - 5.2%
El Paso Energy Corp. .......................... 1,100 56
General Electric Co. .......................... 9,000 477
Illinois Tool Works, Inc. ..................... 500 28
Minnesota Mining & Manufacturing Co. .......... 700 58
Textron, Inc. ................................. 1,000 54
Tyco International, Ltd. ...................... 2,000 95
---------
768
Electric Power - 2.3%
Ameren Corp. .................................. 800 27
Constellation Energy Group. ................... 800 26
Dominion Resources, Inc. ...................... 1,600 69
Duke Energy Co. ............................... 1,800 101
PG & E Corp. .................................. 1,600 39
Pinnacle West Capital Corp. ................... 700 24
Reliant Energy, Inc. .......................... 2,000 59
---------
345
Electronic Products and Services - 6.6%
Agilent Technologies, Inc. .................... 343 25
Altera Corp. .................................. 400 41
Analog Devices, Inc. .......................... 500 38
Applied Materials, Inc. ....................... 700 64
Cisco Systems, Inc. ........................... 6,800 432
Linear Technology Corp. ....................... 600 38
Maxim Integrated Products, Inc. ............... 600 41
Motorola, Inc. ................................ 1,900 55
SCI Systems, Inc. ............................. 1,000 39
Solectron Corp. ............................... 600 25
Texas Instruments, Inc. ....................... 1,500 103
Waters Corp. .................................. 300 38
Xilinx, Inc. .................................. 400 33
---------
972
Financial Services - 3.1%
Associates First Capital Corp. - Cl. A ........ 1,300 29
Citigroup, Inc. .............................. 6,500 391
Mellon Financial Corp. ........................ 900 33
---------
453
Food, Beverage and Tobacco - 1.2%
Anheuser-Busch Cos., Inc. ..................... 500 37
64
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Food, Beverage and Tobacco - Continued
ConAgra, Inc. ................................. 1,100 $ 21
PepsiCo, Inc. ................................. 600 27
Philip Morris Cos., Inc. ...................... 2,100 56
Sysco Corp. ................................... 700 29
---------
170
Health Care Products - 10.3%
Allergan, Inc. ................................ 1,000 75
American Home Products Corp. .................. 1,100 65
Bausch & Lomb, Inc. ........................... 400 31
Bristol-Myers Squibb Co. ...................... 2,700 157
Cardinal Health, Inc. ......................... 400 30
Eli Lilly & Co. ............................... 700 70
Johnson & Johnson ............................. 600 61
Merck & Co., Inc. ............................. 2,300 176
Pfizer, Inc. .................................. 11,075 532
Pharmacia Corp. ............................... 3,000 155
Schering-Plough Corp. ......................... 2,600 131
UnitedHealth Group, Inc. ...................... 400 34
---------
1,517
Health Care Services - 0.2%
Wellpoint Health Networks, Inc. ............... 300 22
Household Appliances/Furnishings - 0.1%
Leggett & Platt, Inc. ......................... 1,300 21
Insurance - 4.9%
American General Corp. ........................ 1,800 110
Aon Corp. ..................................... 1,600 50
AXA Financial, Inc. ........................... 3,200 109
Cigna Corp. ................................... 1,200 112
Hartford Financial Services Group, Inc. ....... 1,300 73
Lincoln National Corp. ........................ 1,700 61
Marsh & McLennan Cos., Inc. ................... 800 84
St. Paul Cos., Inc. ........................... 1,100 37
XL Capital, Ltd. - Cl. A ...................... 1,500 81
---------
717
Machinery - 0.4%
Ingersoll-Rand Co. ............................ 1,400 56
Media - Publishing - 0.4%
AT&T Corp. - Liberty Media Group -
Cl. A .................................... 2,600 63
Media - TV/Radio - 1.7%
Infinity Broadcasting Corp. - Cl. A ........... 1,500 55
Time Warner, Inc. ............................. 1,000 76
Viacom, Inc. - Cl. B .......................... 1,793 122
---------
253
Oil - 0.7%
Royal Dutch Petroleum Co. - NY Shares ......... 1,700 105
Oil and Natural Gas Exploration and
Production - 2.5%
Chevron Corp. ................................. 600 51
Exxon Mobil Corp. ............................. 3,100 244
Kerr-McGee Corp. .............................. 700 41
USX-Marathon Group ............................ 1,200 30
---------
366
Paper and Forest Products - 0.3%
Kimberly-Clark Corp. .......................... 700 40
Personal and Commercial Lending - 0.3%
MBNA Corp. .................................... 1,800 49
Retail - Department Stores - 4.6%
Federated Department Stores, Inc. ............. 1,500 51
Gap, Inc. ..................................... 3,600 112
Home Depot, Inc. .............................. 2,600 130
Limited, Inc. ................................. 1,600 35
Lowe's Cos., Inc. ............................. 1,200 49
Target Corp. .................................. 900 52
TJX Cos., Inc. ................................ 2,800 53
Wal-Mart Stores, Inc. ......................... 3,300 190
---------
672
Retail - Food - 0.2%
Brinker International, Inc. ................... 800 23
Steel - 0.2%
USX-U.S. Steel Group, Inc. .................... 1,900 35
Telecommunication Equipment - 2.9%
ADC Telecommunications, Inc. .................. 500 42
JDS Uniphase Corp. ............................ 400 48
Lucent Technologies, Inc. ..................... 2,300 136
Nortel Networks Corp. ......................... 2,900 198
---------
424
Telecommunication Services - 1.7%
Clear Channel Communications, Inc. ............ 500 38
Sprint PCS (PCS Group) ........................ 1,400 83
WorldCom, Inc. ................................ 2,900 133
---------
254
Telephone - 1.9%
Bell Atlantic Corp. ........................... 1,000 51
BellSouth Corp. ............................... 600 26
SBC Communications, Inc. ...................... 3,000 130
Sprint Corp. .................................. 1,400 71
---------
278
Transportation Services - 0.2%
Union Pacific Corp. ........................... 600 22
U.S. Government Agencies - 0.6%
Federal National Mortgage Assoc. .............. 1,700 89
---------
TOTAL COMMON STOCK- 74.9% 11,039
65
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.1%
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ............................. $ 15 $ 15
Automobile - 0.3%
Ford Motor Co. - Bonds
6.625% due 10/01/28 ........................... 60 51
Banks - 1.0%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ........................... 50 48
Capital One Bank - Notes
7.08% due 10/30/01 ............................ 50 50
Korea Development Bank - Bonds
7.125% due 09/17/01 ........................... 50 50
---------
148
Brokerage and Investment Management - 0.3%
Lehman Brothers Holdings, Inc. - Notes
6.5% due 10/01/02 ............................. 50 49
Computer Equipment - 0.2%
International Business Machines Corp. - Notes
5.625% due 04/12/04 ........................... 30 29
Diversified Operations - 0.4%
El Paso Energy Corp. - Sr. Notes
6.625% due 07/15/01 ........................... 30 30
General Electric Capital Corp.
7.5% due 05/15/05 ............................. 30 30
---------
60
Financial Services - 1.0%
Finova Capital Corp. - Notes
5.875% due 10/15/01 ........................... 50 45
Green Tree Financial Corp. - Ser. 1996-8
Cl. A6
7.6% due 10/15/27 ............................. 50 50
PNC Funding Corp.
7.0% due 09/01/04 ............................. 50 49
---------
144
Media - TV / Radio - 0.3%
Cox Communications, Inc. - Debs.
6.8% due 08/01/28 ............................. 50 43
News America, Inc. - Debs.
7.125% due 04/08/28 ........................... 10 8
---------
51
Natural Gas Distribution - 0.2%
Enron Corp. - Debs.
9.125% due 04/01/03 ........................... 30 31
Oil - Equipment and Services - 0.1%
Petroleum Geo-Services ASA - Sr. Notes
7.125% due 03/30/28 ........................... 20 17
Oil and Natural Gas Exploration and
Production - 0.2%
Amerada Hess Corp. - Bonds
7.875% due 10/01/29 ........................... 30 29
Personal and Commercial Lending - 0.3%
Household Finance Corp. - Notes
6.0% due 05/01/04 ............................. 30 28
U.S. West Capital Funding, Inc.
6.875% due 07/15/28 ........................... 10 9
---------
37
Retail - Department Stores - 0.1%
Wal Mart Stores, Inc.
7.55% due 02/15/30 ............................ 20 20
Retail - Food - 0.5%
Safeway, Inc. - Notes
5.875% due 11/15/01 ........................... 50 49
The Kroger Co
8.05% due 02/01/10 ............................ 20 20
---------
69
Telephone - 0.1%
Sprint Capital Corp.
6.875% due 11/15/28 ........................... 10 9
Transportation Services - 0.1%
Delta Air Lines, Inc.
8.3% due 12/15/29 ............................. 20 17
U.S. Government Agencies - 7.6%
Federal National Mortgage Assoc.
6.0% due 07/25/15 ............................. 345 326
6.5% due 08/25/30 ............................. 150 141
7.0% due 08/25/30 ............................. 310 299
7.25% due 05/15/30 ............................ 70 72
7.5% due 07/25/30 ............................. 279 275
---------
1,113
U.S. Governmental - 9.0%
U.S. Treasury - Bonds
5.25% due 02/15/29 ............................ 250 222
5.875% due 11/15/04 ........................... 170 168
6.25% due 05/15/30 ............................ 150 157
U.S. Treasury - Notes
6.25% due 10/31/01 ............................ 265 264
6.25% due 08/31/02 ............................ 260 259
6.5% due 02/15/10 ............................. 255 264
---------
1,334
---------
TOTAL PUBLICLY-TRADED BONDS- 21.8% 3,223
66
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
AGGRESSIVE BALANCED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
Investment in joint trading account
(Note B)
6.853% due 07/03/00............................ $ 1,535 $ 1,535
--------- ---------
TOTAL INVESTMENTS- 107.1% 15,798
Payables, less cash and receivables- (7.1)% (1,054)
--------- ---------
NET ASSETS- 100.0% 14,744
See notes to financial statements.
67
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
ACTIVE BOND
Par Par
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 1.0%
Jet Equipment Trust
10.91% due 08/15/14 ........................... $ 2,100 $ 2,129
Lockheed Martin Corp. - Notes
7.95% due 12/01/05 ............................ 1,860 1,873
Lockheed Martin Corp. - Bonds
8.5% due 12/01/29 ............................. 1,815 1,848
Raytheon Co.
7.9% due 03/01/03 ............................. 2,605 2,617
---------
8,467
Agricultural Operations - 0.3%
Marlin Water Trust - Sr. Notes 144A (a)
7.09% due 12/15/01 ............................ 2,553 2,526
Automobile - 0.9%
DaimlerChrysler NA Holding Co. - Notes
7.4% due 01/20/05 ............................. 2,520 2,514
DaimlerChysler AG - Debs.
7.45% due 03/01/27 ............................ 1,800 1,724
Ford Motor Co. - Debs.
9.0% due 09/15/01 ............................. 2,000 2,039
United Rentals, Inc.
9.0% due 04/01/09 ............................. 1,230 1,089
---------
7,366
Banks - 2.8%
Abbey National First Capital - Sr. Sub
Notes
8.2% due 10/15/04 ............................. 4,000 4,101
BankBoston Corp. - Sub. Notes
6.625% due 12/01/05 ........................... 2,385 2,279
International Bank of Reconstruction &
Development - Debs.
8.25% due 09/01/16 ............................ 2,150 2,364
National Westminister Bank, NY - Sub Notes
9.45% due 05/01/01 ............................ 5,000 5,085
NB Capital Trust IV
8.25% due 04/15/27 ............................ 1,680 1,570
RBSG Capital Corp. - Notes
10.125% due 03/01/04 .......................... 5,000 5,376
Royal Bank of Scotland Group plc
8.817% due 03/31/05 ........................... 1,870 1,926
---------
22,701
Brokerage and Investment Management - 1.0%
Bear Stearns Co., Inc.
7.625% due 02/01/05 ........................... 1,705 1,679
Goldman Sachs Group, Inc. - Notes
7.35% due 10/01/09 ............................ 1,700 1,629
Morgan Stanley Group, Inc. - Notes
8.875% due 10/15/01 ........................... 3,000 3,055
Salomon Brothers Mortgage Securities VII
6.75% due 07/25/24 ............................ 1,890 1,888
---------
8,251
Chemicals - 0.2%
Akzo Nobel, Inc. - Bonds 144A (a)
6.0% due 11/15/03 ............................. 1,630 1,546
Equistar Chemical - Notes
8.5% due 02/15/04 ............................. 145 143
---------
1,689
Computer Software and Services - 0.4%
Exodus Communications, Inc.
10.75% due 12/15/09 ........................... 1,550 1,496
PSINet, Inc. - Sr. Notes
11.5% due 11/01/08 ............................ 950 902
Verio, Inc. - Sr. Notes
10.375% due 04/01/05 .......................... 1,135 1,192
---------
3,590
Diversified Operations - 0.2%
Harrahs Operating Co., Inc.
7.5% due 01/15/09 ............................. 1,495 1,387
Electric Power - 7.6%
AES Corp. - Sr. Notes
9.5% due 06/01/09 ............................. 935 916
AES Corp. - Sr. Sub. Notes
10.25% due 07/15/06 ........................... 3,113 3,105
AES Eastern Energy
9.0% due 01/02/17 ............................. 2,130 2,074
Beaver Valley Funding Corp. - Debs.
9.0% due 06/01/17 ............................. 2,365 2,327
BVPS II Funding Corp. - Coll. Lease Bonds
8.89% due 06/01/17 ............................ 2,464 2,366
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 ............................ 2,100 2,143
Calpine Corp. - Sr. Notes
10.5% due 05/15/06 ............................ 1,920 1,987
Cleveland Electric Illuminating Co.
7.88% due 11/01/17 ............................ 480 459
Cleveland Electric Illuminating Co. - 1st
Mtge.
9.5% due 05/15/05 ............................. 5,775 5,791
CMS Energy Corp. - Sr. Notes
6.75% due 01/15/04 ............................ 2,040 1,896
8.125% due 05/15/02 ........................... 2,650 2,628
Connecticut Light & Power Co.
7.75% due 06/01/02 ............................ 1,090 1,094
Connecticut Light & Power Co. - Notes 144A (a)
8.59% due 06/04/03 ............................ 1,310 1,275
68
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
ACTIVE BOND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Electric Power - Continued
East Coast Power LLC - Secd. Notes
7.066% due 03/31/12 ........................... $ 1,855 $ 1,706
Long Island Lighting Co. - Debs.
8.2% due 03/15/23 ............................. 3,235 3,177
Midland Cogeneration Venture - Debs.
10.33% due 07/23/02 ........................... 496 508
10.33% due 07/23/02 ........................... 2,046 2,094
Monterrey Power SA de CV - Sec. Bonds 144A (a)
9.625% due 11/15/09 ........................... 720 662
Niagara Mohawk Power Corp. - Debs.
8.77% due 01/01/18 ............................ 3,965 4,008
North Atlantic Energy Corp. - 1st Mtge.
9.05% due 06/01/02 ............................ 1,230 1,244
Peco Energy Transition Trust
0.99% due 03/01/10 ............................ 7,630 7,710
PNPP II Funding Corp. - Debs.
9.12% due 05/30/16 ............................ 2,455 2,445
Quest Diagnostic, Inc.
10.75% due 12/15/06 ........................... 1,847 1,912
Sierra Pacific Resources - Notes
8.75% due 05/15/05 ............................ 2,535 2,574
System Energy Resources, Inc. - 1st Mtge.
7.71% due 08/01/01 ............................ 2,590 2,591
Waterford 3 Funding - Entergy - Bonds
8.09% due 01/02/17 ............................ 4,488 4,201
---------
62,893
Electronic Products and Services - 0.0%
Amkor Technologies, Inc. - Sr. Sub Notes
10.5% due 05/01/09 ............................ 370 373
Energy - Alternative Source - 0.4%
CALENERGY , Inc.
7.23% due 09/15/05 ............................ 1,425 1,385
Panhandle East Pipe Line - Sr. Notes 144A (a)
8.25% due 04/01/10 ............................ 1,870 1,868
---------
3,253
Financial Services - 2.3%
Associates Corp. of North America - Debs.
6.95% due 11/01/18 ............................ 1,465 1,289
Bank of New York Institution Capital - 144A (a)
7.78% due 12/01/26 ............................ 3,350 2,926
Barclays North America Capital Corp. - Debs.
9.75% due 05/15/21 ............................ 4,650 4,924
CIT Group, Inc. - Notes
5.5% due 10/15/01 .............................
General Motors Acceptance Corp. - Notes
7.75% due 01/19/10 ............................ 2,175 2,162
Peco Energy Transition Trust
6.05% due 03/01/09 ............................ 2,600 2,428
Sun Canada Financial Co. - Bonds 144A (a)
6.625% due 12/15/07 ........................... 3,345 3,184
URC Holdings Corp. - Sr. Notes 144A (a)
7.875% due 06/30/06 ........................... 1,840 1,876
---------
18,789
Food, Beverage and Tobacco - 0.3%
Canandaigua Brands, Inc. - Sr. Sub. Notes
8.75% due 12/15/03 ............................ 2,365 2,270
Foreign Governmental - 2.3%
Hydro-Quebec - Debs.
9.4% due 02/01/21 ............................. 610 709
Hydro-Quebec - Debs. Ser. FU
11.75% due 02/01/12 ........................... 5,000 6,565
Hydro-Quebec - Debs. Ser. IF
7.375% due 02/01/03 ........................... 1,000 1,001
Nova Scotia
8.75% due 04/01/22 ............................ 3,000 3,321
Province of Manitoba
9.0% due 12/15/00 ............................. 3,000 3,027
9.25% due 04/01/20 ............................ 2,000 2,301
Province of Saskatchewan
9.375% due 12/15/20 ........................... 1,500 1,732
Republic of Brazil
4.5% due 04/15/14 .............................
Republic of Venezuela - Debs.
6.812% due 12/18/07 ...........................
---------
18,656
Health Care Products - 0.2%
Fresenius Medical Capital Trust II
7.875% due 02/01/08 ........................... 1,740 1,583
Health Care Services - 0.6%
Dynacare, Inc. - Sr. Notes
10.75% due 01/15/06 ........................... 2,660 2,407
Iasis Healthcare Corp.
13.0% due 10/15/09 ............................ 1,225 1,222
Tenet Healthcare Corp. - Sr. Notes
8.0% due 01/15/05 ............................. 1,295 1,247
---------
4,876
Insurance - 1.3%
Conseco, Inc. - Notes
9.0% due 10/15/06 .............................
69
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
ACTIVE BOND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Insurance - Continued
Equitable Life Assurance Society USA -
Notes 144A (a)
6.95% due 12/01/05 ............................ $ 2,750 $ 2,657
Mass. Mutual Life Insurance Co. - Notes
144A (a)
7.625% due 11/15/23 ........................... 2,640 2,510
New York Life Insurance Co. - Sr. Notes
144A (a)
7.5% due 12/15/23 ............................. 5,970 5,250
---------
10,417
Leisure and Recreation - 0.3%
SFX Entertainment, Inc.
9.125% due 12/01/08 ........................... 2,570 2,596
Media - TV / Radio - 2.6%
Adelphia Communications Corp. - Sr. Notes
8.125% due 07/15/03 ........................... 1,270 1,203
9.25% due 10/01/02 ............................ 2,460 2,417
Adelphia Communications Corp.
9.375% due 11/15/09 ........................... 735 676
Clear Channel Communications - Sr. Notes
7.875% due 06/15/05 ........................... 2,545 2,557
Continental Cablevision - Sr. Notes
8.3% due 05/15/06 ............................. 2,165 2,237
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ........................... 1,845 1,790
News America Holdings, Inc. - Debs.
8.25% due 08/10/18 ............................ 1,275 1,238
Rogers Cablesystems - Sr. Notes
10.0% due 03/15/05 ............................ 1,205 1,235
TCI Communications, Inc. - Debs.
7.875% due 02/15/26 ........................... 2,745 2,727
Time Warner, Inc. - Debs.
9.125% due 01/15/13 ........................... 4,003 4,344
United Pan Europe Communications Sr. Notes
Ser.B
11.25% due 11/01/09 ........................... 1,045 920
---------
21,344
Metal Product and Fabrication - 0.2%
Yanacocha Receivables - Pass thru Certs.
144A (a)
8.4% due 06/15/05 ............................. 1,560 1,420
Metals and Mining - 0.2%
Golden Northwest Aluminum
12.0% due 12/15/06 ............................ 1,420 1,420
Municipals - 0.4%
New Hampshire State - Taxable Pease Dev. Auth.
7.7% due 07/01/12 ............................. 3,000 3,124
Oil - 0.8%
Occidental Petroleum Corp.
8.45% due 02/15/29 ............................ 2,725 2,806
Phillips Petroleum Co.
8.75% due 05/25/10 ............................ 1,815 1,922
Valero Energy - Bonds
8.75% due 06/15/30 ............................ 1,815 1,880
---------
6,608
Oil - Equipment and Services - 0.6%
Humpuss Funding Corp. - 144A (a)
7.72% due 12/15/09 ............................ 1,078 791
Petroleum-Geo Services ASA - Sr. Notes
6.625% due 03/30/08 ........................... 2,410 2,131
TOSCO Corp.
8.125% due 02/15/30 ........................... 2,415 2,435
---------
5,357
Oil and Natural Gas Exploration and
Production - 1.1%
Apache Finance of Canada
7.75% due 12/15/29 ............................ 1,830 1,786
Coastal Corp.
7.75% due 06/15/10 ............................ 1,805 1,793
Occidental Petroleum Corp. - Sr. Debs.
10.125% due 09/15/09 .......................... 3,000 3,363
Ocean Energy, Inc.
8.875% due 07/15/07 ........................... 1,325 1,315
Snyder Oil Corp.
8.75% due 06/15/07 ............................ 805 809
Triton Energy Corp., Ltd. - Sr. Notes
8.75% due 04/15/02 ............................ 450 445
---------
9,511
Paper and Forest Products - 0.7%
Abitibi-Consolidated, Inc. - Debs.
8.5% due 08/01/29 ............................. 915 861
Fort James Corp. - Sr. Notes
6.5% due 09/15/02 ............................. 2,120 2,069
International Paper Co. Notes 144A (a)
8.125% due 07/08/05 ........................... 2,540 2,563
---------
5,493
Personal and Commercial Lending - 6.9%
Commercial Mortgage Acceptance Corp. -
Ser. 1991-C1 A1
6.79% due 06/15/31 ............................ 3,390 3,312
CS First Boston Mortgage Securities Corp. -
Ser. 1998-C1 A1A
6.26% due 04/11/30 ............................ 2,697 2,591
Deutsche Mortgage & Asset Receiving Corp. -
Ser. 1998-C1 Cl. C
6.861% due 03/15/08 ........................... 2,170 2,043
EQCC Home Equity Loan Trust
6.57% due 02/15/29 ............................ 2,120 2,003
70
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
ACTIVE BOND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Personal and Commercial Lending - Continued
Ford Motor Credit Co. - Notes
6.125% due 04/28/03 ........................... $ 3,185 $ 3,066
Ford Motor Credit Co.
7.375% due 10/28/09 ........................... 2,190 2,119
GMAC Commercial Mortgage Securities, Inc.
6.566% due 11/15/07 ........................... 3,385 3,207
GMAC Commercial Mortgage Securities, Inc.
- 1997-C1 A2
6.853% due 09/15/06 ........................... 7,325 7,189
Household Finance Corp. - Notes
5.875% due 11/01/02 ........................... 3,955 3,819
Household Finance Corp. - Sr. Unsub.
5.875% due 02/01/09 ........................... 1,820 1,581
LB Commercial Conduit Mortgage Trust -
Ser. 1999-C1
6.41% due 08/15/07 ............................ 3,427 3,304
Midland Funding Corp. II - Debs.
11.75% due 07/23/05 ........................... 1,150 1,216
Money Store Home Equity Trust - Ser.
1997-C1 DAF7
6.485% due 12/15/28 ........................... 4,060 3,881
Morgan Stanley Capital Ser. 1999-CAM1 Cl. A3
6.92% due 11/15/18 ............................ 7,605 7,426
U.S. West Capital Funding, Inc.
6.875% due 07/15/28 ........................... 2,695 2,316
UCFC Home Equity Loan - Ser. 1996-A1 A5
6.5% due 04/15/16 ............................. 166 165
UCFC Home Equity Loan
7.18% due 02/15/25 ............................ 1,115 1,101
UCFC Home Equity Loan - Ser. 1997-A1 A8
7.22% due 06/15/28 ............................ 6,648 6,563
---------
56,902
Real Estate Investment Trust - 2.4%
American Health Properties, 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 7,539
Cabot Industrial Properties LP - Notes
7.125% due 05/01/04 ........................... 1,975 1,900
Camden Property Trust - Sr. Notes
7.0% due 04/15/04 ............................. 2,170 2,081
IMC Home Equity Loan Trust - Ser. 1998-1 A4
6.6% due 03/20/25 ............................. 3,280 3,191
Liberty Property LP - Notes
6.6% due 06/05/02 ............................. 1,675 1,631
TriNet Corp. Realty Trust, Inc. - Notes
7.3% due 05/15/01 ............................. 2,070 2,004
---------
19,548
Real Estate Operations - 0.2%
HMH Properties, Inc. - Ser. A
7.875% due 08/01/05 ........................... 2,075 1,909
Telecommunication Equipment - 1.0%
Axia, Inc.
10.75% due 07/15/08 ........................... 915 714
Crown Castle International Corp. - Sr.
Notes
9.0% due 05/15/11 ............................. 1,665 1,532
Deutsche Telekom International Finance
8.25% due 06/15/30 ............................ 2,190 2,224
Nextel Communications - Sr. Notes
9.375% due 11/15/09 ........................... 2,040 1,958
Williams Communications Group, Inc. -
Senior Notes
10.875% due 10/01/09 .......................... 1,860 1,813
---------
8,241
Telecommunication Services - 2.6%
Clearnet Communications, Inc. - Sr. Disc.
Notes
0.0% due 12/15/05 ............................. 900 927
CSC Holdings, Inc. - Sr. Notes
8.125% due 07/15/09 ........................... 2,830 2,754
DOMINION Resources , Inc. Virginia
8.125% due 06/15/10 ........................... 1,455 1,468
Focal Communications Corp. - Sr. Notes
144A (a)
11.875% due 01/15/10 .......................... 765 761
Global Crossing Holdings, Ltd.
9.5% due 11/15/09 ............................. 2,225 2,136
GT Group Telecom
13.25% due 02/01/10
Level 3 Communications, Inc. - Sr. Notes
144A (a)
11.0% due 03/15/08 ............................ 1,115 1,104
MCI Worldcom, Inc. - Sr. Notes
6.95% due 08/15/28
McLeodUSA, Inc. - Sr. Notes
9.5% due 11/01/08 ............................. 1,520 1,475
Nextel Communications, Inc. - Sr. Disc.
Notes
1.0% due 02/15/08
NTL Communications Corp. - Sr. Notes
11.5% due 10/01/08 ............................ 1,980 1,980
Telecorp PCS, Inc.
11.625% due 04/15/09 .......................... 1,715 1,128
Triton PCS, Inc.
1.0% due 05/01/08 ............................. 660 482
71
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
ACTIVE BOND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Telecommunication Services - Continued
Vodafone Airtouch plc - Ser. 144A (a)
7.75% due 02/15/10 ............................ $ 1,830 $ 1,814
Voicestream Wireless Corp. Sr. Notes
10.375% due 11/15/09 .......................... 920 952
Voicestream Wireless Corp.
11.5% due 09/15/09 ............................ 1,540 1,671
Worldcom, Inc.
8.0% due 05/15/06 ............................. 2,350 2,376
---------
21,028
Telephone - 2.0%
Comcast Cable Communications - Notes
6.2% due 11/15/08 ............................. 1,685 1,518
GTE Corp. - Debs.
8.75% due 11/01/21 ............................ 3,000 3,248
GTE North, Inc. - Debs.
5.65% due 11/15/08 ............................ 2,595 2,254
LCI International, Inc. - Sr. Notes
7.25% due 06/15/07 ............................ 2,205 2,126
Metromedia Fiber Network, Inc. - Sr. Notes
10.0% due 11/15/08 ............................ 1,920 1,901
MetroNet Communications Corp. - Sr. Notes
12.0% due 08/15/07 ............................ 1,770 2,005
NEXTLINK Communications, Inc. - Sr. Notes
10.75% due 11/15/08 ........................... 1,115 1,098
Sprint Capital Corp.
6.9% due 05/01/19 ............................. 2,760 2,450
---------
16,600
Transportation Services - 2.1%
America West Airlines, Inc. - Pass thru
Certs.
6.93% due 01/02/08 ............................ 1,546 1,504
Continental Airlines, Inc. - Pass thru
Certs.
7.206% due 06/30/04 ........................... 2,634 2,558
Erac USA Finance Co. - Notes 144A (a)
6.625% due 02/15/05 ........................... 3,345 3,156
Fine Air Services, Inc.
9.875% due 06/01/08 ........................... 2,090 1,630
Northwest Airlines Corp.
8.375% due 03/15/04 ........................... 1,475 1,365
Northwest Airlines Corp. - Ser. 1996-1
8.97% due 01/02/15 ............................ 212 211
NWA Trust - Sr. Notes
9.25% due 06/21/14 ............................ 2,297 2,452
Railcar Trust - Pass thru Notes Ser.
1992-1
7.75% due 06/01/04 ............................ 1,605 1,607
U.S. Air, Inc. - Pass thru Certs. Ser.
1990-A1
11.2% due 03/19/05 ............................ 1,200 1,212
Wisconsin Central Transportation Corp. -
Notes
6.625% due 04/15/08 ........................... 1,360 1,281
---------
16,976
U.S. Government Agencies - 31.1%
Federal Home Loan Mortgage Corp.
6.0% due 06/15/11 ............................. 10,000 9,478
Federal National Mortgage Assoc.
6.0% due 09/01/14 ............................. 9,721 9,193
6.5% due 09/01/13 ............................. 134 129
6.5% due 07/01/14 ............................. 8,854 8,533
6.5% due 11/01/14 ............................. 132 128
6.5% due 01/01/15 ............................. 61 59
6.5% due 02/01/15 ............................. 102 98
6.5% due 06/01/15 ............................. 448 432
6.5% due 11/01/28 ............................. 10,775 10,169
6.625% due 09/15/09 ........................... 17,475 16,882
6.94% due 01/25/22 ............................ 1,455 1,435
7.0% due 12/31/99 ............................. 6,055 5,940
7.0% due 09/01/10 ............................. 4,418 4,362
7.125% due 02/15/05 ........................... 9,825 9,865
7.125% due 01/15/30 ........................... 11,595 11,680
7.385% due 03/25/21 ........................... 1,172 1,174
7.5% due 04/01/15 ............................. 4,000 3,986
7.5% due 05/01/15 ............................. 4,465 4,450
Government National Mortgage Assoc.
6.0% due 01/15/29 ............................. 9,793 9,019
6.5% due 07/15/28 ............................. 15,291 14,517
6.5% due 01/15/29 ............................. 4,540 4,309
6.5% due 02/15/29 ............................. 3,995 3,791
6.5% due 04/15/29 ............................. 8,374 7,948
6.5% due 06/15/29 ............................. 27,735 26,322
6.5% due 08/15/29 ............................. 7,229 6,861
6.5% due 12/15/99 ............................. 12,435 11,802
7.0% due 09/15/25 ............................. 2,290 2,230
7.0% due 08/15/28 ............................. 6,831 6,641
7.0% due 03/15/29 ............................. 8,996 8,743
7.0% due 04/15/29 ............................. 4,205 4,087
7.0% due 08/15/29 ............................. 3,195 3,105
7.0% due 09/15/29 ............................. 32,333 31,423
7.5% due 09/15/28 ............................. 19 19
7.5% due 09/15/29 ............................. 6,653 6,605
7.5% due 09/15/29 ............................. 11,991 11,905
7.5% due 12/15/29 ............................. 9,064 8,999
7.5% due 01/15/30 ............................. 341 338
8.0% due 05/15/25 ............................. 330 334
8.0% due 06/15/25 ............................. 308 311
8.0% due 12/31/99 ............................. 6,675 6,746
8.0% due 09/15/25 ............................. 600 607
8.0% due 01/15/26 ............................. 290 293
72
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
ACTIVE BOND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Government Agencies - Continued
8.0% due 08/15/27 ............................. $ 1,580 $ 1,597
8.5% due 09/15/21 ............................. 612 628
9.0% due 05/15/21 ............................. 420 436
9.0% due 08/15/21 ............................. 547 568
9.5% due 06/15/16 ............................. 370 390
---------
255,710
U.S. Governmental - 16.1%
U.S. Treasury - Notes
5.625% due 05/15/08 ........................... 13,855 13,366
5.75% due 08/15/03 ............................ 10,040 9,869
7.0% due 07/15/06 ............................. 11,434 11,848
7.5% due 05/15/02 ............................. 10,950 11,152
7.5% due 02/15/05 ............................. 18,976 19,889
U.S. Treasury - Bonds
7.125% due 02/15/23 ........................... 25,047 27,837
8.875% due 08/15/17 ........................... 11,899 15,167
---------
131,985
---------
TOTAL PUBLICLY-TRADEDBONDS- 93.1% 764,859
WARRANTS
Telephone - 0.0%
MetroNet Communications Corp. - CW07 144A (a)
expires 08/15/07 (Cost $58).................... 2 261
SHORT-TERM INVESTMENTS - 8.6%
Investment in joint trading account
(Note B)
6.853% due 07/03/00............................. 70,698 70,698
---------- -----------
TOTAL INVESTMENTS- 101.7% 835,818
Payables, less cash and receivables- (1.7)% (14,195)
---------- -----------
NET ASSETS- 100.0% 821,623
(a) Pursuant to Rule 144A (a) under the Securities Act of 1993, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At June 30, 2000, securities aggregated
$37,438 or 4.56% of net assets of the Portfolio.
See notes to financial statements.
73
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
CORE BOND
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
U.S. Governmental - 96.9%
U.S. Treasury - Notes
5.25% due 05/15/04 ............................ $ 200 $ 193
6.25% due 05/15/30 ............................ 200 210
6.375% due 06/30/02 ........................... 850 850
6.5% due 02/15/10 ............................. 900 931
6.75% due 05/15/05 ............................ 2,000 2,046
7.25% due 05/15/16 ............................ 350 386
7.25% due 08/15/22 ............................ 200 225
-------
4,841
-------
TOTAL PUBLICLY-TRADED BONDS- 96.9% 4,841
Receivables, less Cash and payables- 3.1% 154
------- -------
NET ASSETS- 100.0% 4,995
See notes to financial statements.
74
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST
June 30, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Brazil - 4.5%
Companhia Energetica de Minas Gerias -
ADR (UTIE) .................................. 3,540 $ 61
Companhia Vale do Rio Doce - ADR
(META) ...................................... 1,605 45
Embratel Participacoes SA - ADR (UTIT) ........ 11,150 264
Petroleo Brasileiro SA - ADR (OILX) ........... 3,545 107
Tele Celular Sul Participacoes SA - ADR
(TELS) ...................................... 3,798 172
Tele Centro Sul Participacoes SA - ADR
(UTIT) ...................................... 4,055 296
Tele Norte Leste Participacoes SA - ADR
(TELS) ...................................... 12,532 296
Telemig Celular Participacoes SA - ADR
(TELS) ...................................... 997 72
Telesp Celular Participacoes SA - ADR
(TELS) ...................................... 9,248 415
Unibanco - Uniao de Bancos Brasileiros
SA - GDR (BANK) ............................. 12,601 362
Votorantim Celulose e Papel SA - ADR
(PAPR) ...................................... 4,400 81
-------
2,171
Cayman Islands - 0.1%
Phoenix Satellite TV * (MEDI).................. 169,000 24
SINA.com * (SOFT) ............................. 400 10
-------
34
Chile - 0.2%
Chilectra SA - ADR (UTIE) ..................... 1,400 22
Compania de Telecomunicaciones de
Chile SA (UTIT) ............................. 4,700 85
-------
107
China - 2.0%
China Unicom, Ltd. * (TELS) ................... 1,900 40
Great Wall Technology Co. * (ETRN) ............ 461,000 319
Guandong Kelon Electrical Holdings Co.,
Ltd. - H Shares (APPL) ...................... 34,000 18
Nanjing Panda Electric (UTIE) ................. 212,000 76
PetroChina Co., Ltd. - ADR * (OILS) ........... 600 13
PetroChina Company, Ltd. * (OILX) ............. 2,096,000 436
Yanzhou Coal Mining Co., Ltd. ADR -
ADR (META) .................................. 3,960 40
Zhenhai Refining and Chemical Co., Ltd.
(OILS) ...................................... 164,000 26
-------
968
Czech Republic - 0.4%
Cesky Telecom a.s. - GDR * (TELS) ............. 4,270 71
SPT Telecom AS (TELS) ......................... 6,510 110
-------
181
Egypt - 0.9%
Al-Ahram Beverages Co. SAE - GDR
(FOOD) ...................................... 2,171 37
Eastern Co. for Tobacco & Cigarettes
(FOOD) ...................................... 1,069 23
Egypt Gas Co. (OILX) .......................... 500 23
Egypt Mobile Phone * (TELS) ................... 11,677 380
-------
463
Greece - 2.3%
Hellenic Telecommunication
Organization SA (UTIT) ...................... 26,088 639
Hellenic Telecommunications
Organization SA - ADR (UTIT) ................ 38,057 464
-------
1,103
Hong Kong - 6.1%
Asia Satellite Telecommunications
Holdings, Ltd. (TELS) ....................... 16,000 55
China Merchants Holdings International
Co., Ltd. (CNSU) ............................ 129,000 89
China Telecom (Hong Kong), Ltd.
(TELS) ...................................... 104,000 917
China Telecom (Hong Kong), Ltd. - ADR
(TELS) ...................................... 3,100 551
China Unicom, Ltd. * (TELS) ................... 244,000 515
Citic Pacific, Ltd. (DIOP) .................... 33,000 173
Cosco Pacific, Ltd. (COMM) .................... 145,000 114
Founder Holdings , Ltd. (META) ................ 138,000 61
Legend Holdings (COMP) ........................ 205,000 199
TCL International Holdings, Ltd. *
(ETRN) ...................................... 500,000 183
Timeless Software, Ltd. * (SOFT) .............. 98,000 44
Yue Yuen Industrial Holdings (APPA) ........... 34,000 75
-------
2,976
Hungary - 0.7%
Magyar Tavkozlesi Rt. - ADR (UTIT) ............ 7,347 253
Magyar Tavkozlesi Rt. (UTIT) .................. 12,354 86
-------
339
India - 6.7%
Aptech, Ltd. * (SOFT) ......................... 3,100 59
Bharat Heavy Electricals, Ltd. (ELEQ) ......... 30,200 90
BSES, Ltd. * (UTIE) ........................... 12,500 69
Container Corp. of India, Ltd. (TRAN) ......... 24,092 93
Dabur India, Ltd. (HEAL) ...................... 2,200 32
Gujarat Ambuja Cements, Ltd. - GDR
(CONS) ...................................... 20,400 84
HCL TECHNOLOGIES (CNSU) ....................... 3,100 97
Hero Honda Motors, Ltd. * (AUTO) .............. 3,050 67
Hindustan Lever, Ltd. (HNBA) .................. 2,200 140
75
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
India - Continued
Housing Development Financing Corp.,
Ltd. (LEND) ................................... 11,880 149
Indialnfo, Ltd. (SOFT) .......................... 10,639 46
Indo Gulf Corp., Ltd. (CHEM) .................... 20,500 20
Infosys Technologies, Ltd. * (SOFT) ............. 5,665 1,055
Larsen & Toubro, Ltd. - GDR (DIOP) .............. 1,700 18
Lupin Laboratories, Ltd. (HEAL) ................. 4,600 20
Mahanagar Telephone Nigam, Ltd.
(TELS) ........................................ 38,250 218
NIIT, Ltd. (SOFT) ............................... 2,400 119
Reliance Industries, Ltd. - GDR *
(CHEM) ........................................ 7,950 165
Satyam Computer Services, Ltd. (SOFT) ........... 5,167 345
Sterlite Industries of India, Ltd. * (DIOP) ..... 1,950 36
Strides Arcolab, Ltd. (CNSU) .................... 2,500 14
Tata Engineering and Locomotive Co.,
Ltd. - GDR (AUTO) ............................. 11,000 29
Tata Tea Ltd. (FOOD) ............................ 10,800 80
Videsh Sanchar Nigam, Ltd. (TELE) ............... 2,150 58
Zee Telefilms Ltd. (MEDI) ....................... 14,800 149
-------
3,252
Indonesia - 0.6%
PT Gudang Garam Tbk (FOOD) ...................... 99,500 161
PT Indah Kiat Pulp & Paper Corp. Tbk
(PAPR) ........................................ 159,000 32
PT Indofood Sukses Makmur Tbk
(FOOD) ........................................ 8,500 5
PT Semen Gresik (Persero) Tbk (CONS) ............ 49,500 45
PT Telekomunikasi Indonesia - ADR
(UTIT) ........................................ 7,510 52
-------
295
Israel - 7.1%
Aladdin Knowledge Systems (SOFT) ................ 4,147 66
BATM Advanced Communications, Ltd.
(ETRN) ........................................ 1,372 119
Breezecom, Ltd. * (TELE) ........................ 1,900 83
Check Point Software technologies, Ltd.
* (SOFT) ...................................... 2,924 619
ECI Telecommunications, Ltd. (MEDI) ............. 29,663 1,061
Galileo Technology, Ltd. * (ETRN) ............... 14,852 319
Gilat Satellite Networks, Ltd. * (TELE) ......... 4,255 295
M-Systems Flash Disk Pioneers, Ltd. *
(COMP) ........................................ 1,460 114
Nice Systems, Ltd. (TELE) ....................... 813 63
Nice Systems, Ltd. - ADR * (TELE) ............... 1,144 88
Optibase, Ltd. * (COMP) ......................... 5,826 102
Orckit Communications, Ltd. * (TELS) ............ 3,445 104
Radware, Ltd. * (SOFT) .......................... 2,178 58
Tecnomatix Technologies, Ltd. * (SOFT) .......... 4,162 57
TTI Team Telecom International, Ltd. *
(TELS) ........................................ 7,423 267
VCon Telecommunications, Ltd. *
(TELE) ........................................ 1,610 17
-------
3,432
Malaysia - 2.1%
British American Tobacco (Malaysia)
Berhad (FOOD) ................................. 22,000 179
Commerce Asset Holding Bhd (BANK) ............... 16,000 46
Digi Swisscom * (TELS) .......................... 32,000 59
Malayan Banking Berhad (BANK) ................... 43,000 174
Malaysian Pacific Industries (ETRN) ............. 10,000 103
Public Bank Berhad (BANK) ....................... 86,000 79
Resorts World Berhad (DIOP) ..................... 24,000 66
Telekom Malaysia Berhad (TELS) .................. 52,000 179
Tenaga Nasional Berhad (UTIE) ................... 38,000 124
-------
1,009
Mexico - 9.4%
Alfa, SA * (DIOP) ............................... 38,090 87
Cemex SA de CV - ADR Participation
Certificates * (CONS) ......................... 5,578 130
Cemex SA de CV - CPO * (CONS) ................... 52,339 245
Cifra SA de CV - Ser. V (RETS) .................. 49,700 117
Fomento Economico Mexicano SA de CV
(FOOD) ........................................ 17,499 75
Fomento Economico Mexicano SA de CV
- ADR (FOOD) .................................. 8,050 347
Grupo Carso SA de CV - Ser. A1 (DIOP) ........... 44,400 157
Grupo Financiero Banamex Accival SA
de CV (Banacci) (FINL) ........................ 63,400 267
Grupo Financiero Bancomer SA de CV -
ADR (FINL) .................................... 2,100 21
Grupo Financiero Bancomer SA de CV -
Cl. O (FINL) .................................. 296,850 151
Grupo Modelo SA de CV - Ser. C
(FOOD) ........................................ 8,200 19
Grupo Sanborns SA - Ser. B1 * (RETS) ............ 2,025 3
Grupo Televisa SA - GDR * (MEDI) ................ 11,550 796
Kimberly-Clark de Mexico SA de CV
(PAPR) ........................................ 31,030 88
Telefonos de Mexico SA - ADR (UTIT) ............. 34,000 1,942
Wal-Mart de Mexico SA de CV - ADR *
(RETS) ........................................ 3,216 76
Wal-Mart de Mexico SA de CV - Ser. C
(RETS) ........................................ 18,300 42
-------
4,563
Poland - 0.9%
Elektrim Spolka Akcyjna SA (ETRN) ............... 4,518 52
Telekomunikacja Polska - GDR * (TELS) ........... 58,488 401
-------
453
76
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
South Africa - 3.7%
Anglo American Platinum Corp., Ltd.
(PMET) ......................................... 6,408 $ 185
B.O.E. Corp., Ltd. (FUND) ........................ 19,931
Bidvest Group, Ltd. (DIOP) ....................... 18,373 127
BOE, Ltd. (FINL) ................................. 40,403 23
De Beers - ADR (PMET) ............................ 321 8
De Beers Centenary AG (UTIE) ..................... 3,635 88
Dimension Data Holdings, Ltd. (COMP) ............. 22,587 187
Ellerine Holdings, Ltd. (RETS) ................... 13,200 57
Impala Platinum Holdings, Ltd. (META) ............ 1,109 41
Liberty Life Association of Africa, Ltd.
(INSU) ......................................... 3,280 31
M-Cell, Ltd. (TELS) .............................. 63,830 309
Naspers, Ltd. - N Shares (MEDP) .................. 5,335 44
Nedcor, Ltd. (BANK) .............................. 7,540 158
New Africa Investments, Ltd. - N Shares *
(FINL) ......................................... 98,800 25
Rembrandt Group, Ltd. (DIOP) ..................... 25,262 244
RMB Holdings, Ltd. (FINL) ........................ 1,025 1
Sappi, Ltd. (READ) ............................... 7,270 55
Sasol, Ltd. (OILX) ............................... 34,813 233
--------
1,816
South Korea - 20.9%
39SHOPPING Corp. (RETS) .......................... 2,000 66
Cheil Communications, Inc. (MEDP) ................ 2,120 277
Communication Network Interface, Inc. *
(TELE) ......................................... 9,530 53
Daou Technology, Inc. (SOFT) ..................... 58 1
Dreamline Corp. * (TELE) ......................... 289 8
Hana Bank (BANK) ................................. 3,570 22
Hanvit Bank (BANK) ............................... 28,700 73
Hanvit Bank - GDR * (BANK) ....................... 14,420 71
Housing & Commercial Bank, Korea
(BANK) ......................................... 6,354 149
Humax Co., Ltd. * (APPL) ......................... 11,475 159
Hyundai Electronics Industries Co.
(ETRN) ......................................... 13,020 257
Hyundai Securities Co. (FINL) .................... 88 1
Kookmin Bank (BANK) .............................. 11,383 145
Korea Electric Power Corp. (UTIE) ................ 8,130 252
Korea Electric Power Corp. - ADR
(UTIE) ......................................... 8,250 152
Korea Technology Banking Co. (BANK) .............. 6,120 66
Korea Telecom Corp. * (TELS) ..................... 16,840 1,483
Korea Telecom Corp. - ADR * (TELS) ............... 12,690 614
Korea Telecom Freetel * (TELS) ................... 1,610 107
LG Electronics (ETRN) ............................ 3,590 101
LG Home Shopping, Inc. (RETS) .................... 1,330 126
LG Information & Communication, Ltd.
(TELE) ......................................... 1,660 93
LG Investment & Securities Co., Ltd.
(FINL) ......................................... 7,760 101
Locus Corp. * (SOFT) ............................. 420 34
Pantech Co., Ltd. (TELE) ......................... 3,663 28
Pohang Iron & Steel Co., Ltd. (STEE) ............. 530 45
Samsung Electro-Mechanics Co. (ETRN) ............. 7,090 445
Samsung Electronics (ETRN) ....................... 10,590 3,505
Samsung Securities Co., Ltd. (FUND) .............. 6,210 136
Shinhan Bank (BANK) .............................. 10,370 98
SK Telecom Co., Ltd. (TELS) ...................... 3,600 1,178
SK Telecom Co., Ltd. - ADR (TELS) ................ 4,040 147
Telson Electronics Co., Ltd. (TELE) .............. 11,144 118
Tongyang Cement Co. (CONS) ....................... 1,940 42
--------
10,153
Soviet Union - 3.4%
LUKoil Holding - ADR (OILS) ...................... 10,323 528
LUKoil Holding - ADR * (OILS) .................... 2,300 46
RAO Unified Energy Systems - GDR
(UTIE) ......................................... 29,796 343
Rostelecom - ADR * (TELS) ........................ 4,940 67
Surgutneftegaz - ADR (OILS) ...................... 47,160 628
SURGUTNEFTEGAZ JSC (OILS) ........................ 800 10
Vimpel-Communications - ADR *
(TELS) ......................................... 350 8
--------
1,630
Taiwan - 13.5%
Accton Technology Corp. - GDR *
(ETRN) ......................................... 58,902 253
Acer Peripherals, Inc. - GDR * (COMP) ............ 11,400 322
Acer, Inc. - GDR * (COMP) ........................ 14,600 134
Advanced Semiconductor Engineering,
Inc. * (ETRN) .................................. 17,700 296
Ase Test, Ltd. * (ETRN) .......................... 3,700 109
Asustek Computer, Inc. - GDR (COMP) .............. 72,624 661
China Steel Corp. (STEE) ......................... 27,200 362
D-Link Corp. - GDR (SOFT) ........................ 25,300 296
Far Eastern Textile, Ltd. - GDR * (APPA) ......... 12,400 153
Far Eastern Textile, Ltd. - GDR 144A (a)
* (APPA) ....................................... 23,800 301
GigaMedia, Ltd. * (SOFT) ......................... 1,100 13
Hon Hai Precision Industry Co., Ltd. -
GDR * (ETRN) ................................... 6,100 151
Hon Hai Precision Industry Co., Ltd. -
GDR 144A (a) * (ETRN) .......................... 36,200 914
Ritek, Inc. - GDR 144A (a) * (ETRN) .............. 19,537 152
Siliconware Precision - ADR * (ETRN) ............. 16,800 188
Taiwan Semiconductor Manufacturing
Co., Ltd. ADR - ADR (ETRN) ..................... 49,004 1,899
Winbond Electronics Corp. - GDR *
(ETRN) ......................................... 12,876 367
--------
6,571
77
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Thailand - 1.2%
Advanced Info Service Public Co., Ltd.
(TELS) ......................................... 18,700 $ 233
BEC World Public Co., Ltd. (MEDI) ................ 12,700 73
Delta Electronics (Thailand) Public Co.,
Ltd. (ETRN) .................................... 17,020 111
Shin Corp. Public Co., Ltd. (COMP) ............... 14,700 77
Thai Farmers Bank Public Co., Ltd.
(BANK) ......................................... 53,800 45
Total Access Communication Public Co.,
Ltd (TELS) ..................................... 6,000 24
--------
563
Turkey - 4.2%
Alcatel Teletas Telekomunikasyon
Endustri ve Ticaret AS (TELE) .................. 252,000 55
Dogan Sirketler Grubu Holding AS
(MEDI) ......................................... 8,802,800 213
Dogan Yayin Holding Corp. * (FUND) ............... 5,259,000 89
Ege Biracilik ve Malt Sanayi AS
(FOOD) ......................................... 2,862,200 187
Erciyas Biracilik ve Malt Sanayi AS
(FOOD) ......................................... 450,000 21
Netas Northern Electric
Telekomunikasyon AS (TELE) ...................... 614,000 68
Turkiye Garanti Bankasi AS (BANK) ................ 16,399,000 198
Vestel Elektronik Sanayi ve Ticaret AS
(ETRN) ......................................... 1,228,723 371
Yapi ve Kredi Bankasi AS - GDR *
(BANK) ......................................... 1,045 12
Yapi ve Kredi Bankasi AS (BANK) .................. 72,029,716 801
--------
2,015
United States - 1.5%
Amdocs, Ltd. * (TELS) ............................ 1,798 138
AsiaInfo Holdings, Inc. * (SOFT) ................. 30 1
Comverse Technology, Inc. * (COMP) ............... 1,518 141
DSP Group, Inc. * (ETRN) ......................... 3,743 210
MIH Holdings, Ltd. * (MEDI) ...................... 1,100 33
Polski Koncern Naftowy SA - GDR *
(OILS) ......................................... 713 7
Zoran Corp. * (ETRN) ............................. 2,475 163
--------
693
--------
TOTAL COMMON STOCK- 92.4% 44,787
PREFERRED STOCK
Brazil - 4.3%
Banco Bradesco SA (BANK) ......................... 5,393,000 47
Celular CRT Participacoes * (TELS) ............... 1,046,100 458
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) ................................... 2,243,400 39
Companhia Riograndense de
Telecomunicacoes * (TELS) ....................... 857,100 290
Companhia Vale do Rio Doce - Cl. A *
(META) ......................................... 10,939 309
Embratel Participacoes SA (UTIT) ................. 9,059,000 216
Petroleo Brasileiro SA - Petrobras (OILS) ........ 7,536 228
Tele Celular Sul Participacoes SA
(TELS) ......................................... 8,034,000 39
Tele Centro Sul Participacoes SA
(UTIT) ......................................... 6,041,000 87
Tele Nordeste Celular Participacoes SA
(TELS) ......................................... 12,797,600 48
Tele Norte Leste Participacoes SA
(UTIT) ......................................... 4,144,062 97
Telemig Celular Participacoes SA
(TELS) ......................................... 13,849,850 50
Telesp Celular Participacoes SA *
(TELS) ......................................... 8,586,286 155
--------
2,063
--------
TOTAL PREFERRED STOCK- 4.3% 2,063
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.9%
Investment in joint trading account
(Note B)
6.853% due 07/03/00............................. $ 1,422 1,422
------------ --------
TOTAL INVESTMENTS- 99.6% 48,272
Cash and Receivables, less payables- 0.4% 200
------------ --------
NET ASSETS- 100.0% 48,472
============ ========
78
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Electronic Products and Services ............... ETRN 10,586 17.7%
Telecommunication Services ..................... TELS 10,195 17.1%
Telephone ...................................... UTIT 4,482 7.6%
Computer Software and Services ................. SOFT 2,823 5.0%
Banks .......................................... BANK 2,548 9.2%
Media - TV / Radio ............................. MEDI 2,348 6.0%
Computer Equipment ............................. COMP 1,936 6.4%
Oil ............................................ OILS 1,458 3.0%
Electric Power ................................. UTIE 1,227 2.4%
Food, Beverage and Tobacco ..................... FOOD 1,134 3.5%
Telecommunication Equipment .................... TELE 1,028 2.8%
Diversified Operations ......................... DIOP 909 1.9%
Oil and Natural Gas Exploration and Production.. OILX 799 0.8%
Financial Services ............................. FINL 590 1.9%
Construction ................................... CONS 547 2.8%
Shoe and Apparel Manufacturing ................. APPA 529 1.9%
Metals and Mining .............................. META 497 1.5%
Retail - Department Stores ..................... RETS 486 0.4%
Steel .......................................... STEE 407 1.3%
Media - Publishing ............................. MEDP 321 0.1%
Brokerage and Investment Management ............ FUND 226 1.7%
Paper and Forest Products ...................... PAPR 201 0.4%
Consumer - Miscellaneous ....................... CNSU 199 0.5%
Precious Metals/Gems/Stones .................... PMET 192 0.4%
Chemicals ...................................... CHEM 184 0.4%
Household Appliances / Furnishings ............. APPL 177 0.0%
Personal and Commercial Lending ................ LEND 149 0.2%
Cosmetics and Personal Care Products ........... HNBA 140 0.5%
Commercial Sevices ............................. COMM 114 0.5%
Automobile ..................................... AUTO 97 1.0%
Transportation Services ........................ TRAN 93 0.6%
Electrical Equipment ........................... ELEQ 90 0.4%
Real Estate Development ........................ READ 55 0.2%
Health Care Products ........................... HEAL 52 0.2%
Insurance ...................................... INSU 31 0.1%
-------- -------
$46,850 100.0%
======== =======
79
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.2%
Banco de Galicia y Buenos Aires SA de
CV - Cl. B (BANK) ............................... 16,184 $ 61
Banco Frances SA (BANK) .......................... 10,000 73
IRSA Inversiones y Representaciones SA
(READ) .......................................... 16,185 37
PC Holdings SA - Cl. B (FINL) .................... 89,133 163
Siderca S.A.I.C. (STEE) .......................... 35,000 81
---------
415
Australia - 1.7%
Amcor, Ltd. (CONT) ............................... 14,400 50
Brambles Industries, Ltd. (DIOP) ................. 7,200 221
Broken Hill Proprietary Co., Ltd. (DIOP) ......... 35,100 415
Coca Cola Amatil (FOOD) .......................... 23,200 45
Coles Myer, Ltd. (RETS) .......................... 27,200 104
CSR, Ltd. (CONS) ................................. 37,900 105
Foster's Brewing Group, Ltd. (FOOD) .............. 70,100 197
Hanson plc * (CONS) .............................. 4,190 29
Lend Lease Corp. (FINL) .......................... 13,200 168
National Australia Bank, Ltd. (BANK) ............. 30,600 511
News Corp., Ltd. (MEDI) .......................... 38,800 534
Normandy Mining, Ltd. (PMET) ..................... 94,800 51
North, Ltd. (META) ............................... 34,600 82
Orica, Ltd. (DIOP) ............................... 15,500 70
Pacific Dunlop, Ltd. (DIOP) ...................... 59,000 53
Paperlinx (PAPR) ................................. 4,800 9
Rio Tinto, Ltd. (PMET) ........................... 7,900 130
Santos, Ltd. (OILX) .............................. 38,000 116
Telstra Corp., Ltd. (TELS) ....................... 144,100 584
Westpac Banking Corp., Ltd. (BANK) ............... 46,600 336
WMC, Ltd. (DIOP) ................................. 29,500 132
---------
3,942
Austria - 1.0%
Austria Tabak AG (FOOD) .......................... 3,700 137
Austrian Airlines (TRAN) ......................... 3,150 46
Bank Austria AG (BANK) ........................... 13,000 633
BBAG Oesterreichische Brau Beteiligungs
AG (FOOD) ....................................... 2,150 97
Bohler-Uddeholm AG (STEE) ........................ 1,500 52
EA-Generali AG (INSU) ............................ 1,050 169
Flughafen Wien AG (TRAN) ......................... 4,000 142
Mayr-Melnhof Karton Ag (PAPR) .................... 1,800 85
Oesterreichische
Elektrizitaetswirtschafts AG (UTIE) ............. 3,200 328
OMV AG (OILX) .................................... 3,000 261
RHI AG (DIOP) .................................... 2,050 50
VA Technologie AG (ENGI) ......................... 1,400 74
Wienerberger Baustoffindustrie AG
(CONS) .......................................... 7,200 164
---------
2,238
Belgium - 1.1%
Barco NV (DIOP) .................................. 559 63
Bekaert NV (METP) ................................ 1,390 72
Colruyt, NV (RETF) ............................... 1,870 79
Compagnie Maritime Belge SA (TRAN) ............... 1,921 101
D' Ieteren SA (AUTO) ............................. 290 73
Delhaize "Le Lion" SA (RETF) ..................... 1,955 117
Dolmen Computer Applications NV *
(COMP) .......................................... 187 4
Electrabel SA (UTIE) ............................. 1,236 306
Fortis (B) (INSU) ................................ 20,892 608
Groupe Bruxelles Lambert SA (FUND) ............... 1,094 273
KBC Bancassurance Holding NV (BANK) .............. 10,840 477
N.V. Union Miniere SA * (META) ................... 1,461 53
Solvay SA (FINL) ................................. 2,115 142
Suez Lyonnaise des Eaux SA - Strip VVPR
* (DIOP) ........................................ 2,341
Total Fina SA - Strip VVPR * (DIOP) .............. 3,609
UCB SA (HEAL) .................................... 4,800 176
---------
2,544
Bermuda - 0.0%
Brierly Investments, Ltd. (FUND) ................. 295,300 46
Brazil - 0.1%
Centrais Electricas Brasileiras SA
(UTIE) .......................................... 10,577,000 217
Companhia Siderurgica Nacional * (STEE) .......... 1,655,000 52
Tele Norte Leste Participacoes SA
(UTIT) .......................................... 4,096,000 79
---------
348
Chile - 0.3%
Banco Santiago SA - ADR (BANK) ................... 2,900 52
Compania Cervecerias Unidas SA - ADR
(FOOD) .......................................... 2,900 66
Compania de Telecomunicaciones de Chile
SA (UTIT) ....................................... 8,000 145
Embotelladora Andina SA - ADR (FOOD) ............. 6,100 72
Empresa Nacional de Electricidad SA -
ADR (UTIE) ...................................... 10,100 112
Enersis SA - ADR (UTIE) .......................... 3,700 74
Gener SA - ADR (UTIE) ............................ 3,500 51
Laboratorio Chile SA - ADR (HEAL) ................ 5,700 109
Madeco SA - ADR (META) ........................... 8,700 66
Sociedad Quimica y Minera de Chile SA -
ADR (CHEM) ...................................... 1,100 24
---------
771
80
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
China - 0.0%
Harbin Power Equipment Co., Ltd. - H
Shares (UTIE) ................................... 1,148,000 $ 55
Jinan Qingqi Motorcycle Co., Ltd. - B
Shares * (AUTO) ................................. 208,000 38
---------
93
Czech Republic - 0.1%
Ceska Sporitelna AS (BANK) ....................... 9,500 51
Ceske Energeticke Zavody AS (UTIE) ............... 20,000 53
Komercni Banka AS (BANK) ......................... 3,000 61
SPT Telecom AS (TELS) ............................ 6,300 106
---------
271
Denmark - 0.9%
A/S Dampskibsselskabet Svendborg - Cl. B (TRAN) .. 27 399
D/S 1912 - Cl. B (TRAN) .......................... 40 425
Danisco A/S (FOOD) ............................... 2,450 82
Den Danske Bank (BANK) ........................... 1,150 138
ISS A/S (COMM) ................................... 1,650 125
Navision Software AS * (SOFT) .................... 700 29
Novo-Nordisk A/S - Cl. B (HEAL) .................. 2,450 417
Tele Danmark A/S (TELS) .......................... 6,850 461
Vestas Wind Systems AS (ENER) .................... 2,500 92
---------
2,168
Finland - 1.5%
Nokia Oyj (HEAL) ................................. 56,800 2,899
Outokumpu Oyj (META) ............................. 3,500 33
Sampo Insurance Co. plc (INSU) ................... 2,500 102
Sonera Oyj (TELS) ................................ 6,935 316
UPM-Kymmene Corp. * (PAPR) ....................... 4,400 109
---------
3,459
France - 11.2%
Accor SA (LEIS) .................................. 5,285 217
Air Liquide (CHEM) ............................... 1,908 249
Alcatel (TELE) ................................... 20,950 1,374
AXA SA (INSU) .................................... 8,216 1,294
Banque Nationale de Paris (BANK) ................. 10,345 996
Bouygues SA (CONS) ............................... 903 603
Canal Plus (MEDI) ................................ 3,080 518
Cap Gemini SA (COMM) ............................. 1,622 286
Carrefour SA (RETF) .............................. 16,478 1,126
Casino Guichard-Perrachon SA (RETF) .............. 2,053 190
Club Mediterranee SA (LEIS) ...................... 1,000 135
Compagnie de St. Gobain (CONS) ................... 2,112 286
Dassault Systemes SA (SOFT) ...................... 3,022 282
Eridania Beghin-Say SA (FOOD) .................... 758 74
Essilor International SA (HEAL) .................. 358 103
France Telecom (TELS) ............................ 23,029 3,219
Groupe Danone (FOOD) ............................. 3,602 478
Imercys (CONS) ................................... 794 92
L'Oreal (HNBA) ................................... 1,349 1,168
Lafarge SA (CONS) ................................ 2,526 196
Lagardere S.C.A. (DIOP) .......................... 4,108 314
Michelin (PART) .................................. 3,987 128
Moet Hennessy-Louis Vuitton (FOOD) ............... 2,323 958
Pernod Ricard (FOOD) ............................. 1,763 96
Pinault-Printemps-Redoute SA (RETS) .............. 2,671 593
PSA Peugeot Citroen (AUTO) ....................... 1,457 292
Rhone-Poulenc SA (BANK) .......................... 18,550 1,354
Sagem SA * (ETRN) ................................ 420 492
Sanofi-Synthelabo SA * (HEAL) .................... 12,996 619
Schneider SA (MACH) .............................. 3,911 273
Sidel SA (MACH) .................................. 1,162 94
Societe BIC SA (COMM) ............................ 1,789 88
Societe Eurafrance SA (FINL) ..................... 170 81
Societe Generale - Cl. A (BANK) .................. 10,336 622
STMICROELECTRONICS (ETRN) ........................ 22,182 1,398
Suez Lyonnaise des Eaux (DIOP) ................... 5,754 1,008
Thomson CFS (ETRN) ............................... 3,440 135
Total Fina SA - Cl. B (OILX) ..................... 19,030 2,918
Unibail (REAL) ................................... 700 97
Usinor SA (STEE) ................................. 8,601 105
Valeo SA (PART) .................................. 2,282 122
Vivendi (DIOP) ................................... 12,592 1,111
---------
25,784
Germany - 12.0%
Adidas-Salomon AG (APPA) ......................... 1,920 106
Allianz AG - Reg. (INSU) ......................... 8,380 3,011
BASF AG (CHEM) ................................... 21,860 879
Bayer AG (CHEM) .................................. 24,980 975
Bayerische Vereinsbank AG (BANK) ................. 13,272 857
Beiersdorf AG (HNBA) ............................. 2,220 191
Bilfinger & Berger Bau AG (CONS) ................. 2,960 39
Buderus AG (DIOP) ................................ 2,860 46
Continental AG (PART) ............................ 5,950 100
DaimlerChrysler AG (AUTO) ........................ 33,114 1,727
Deutsche Bank AG (BANK) .......................... 19,450 1,601
Deutsche Telekom AG (UTIT) ....................... 105,640 6,031
Douglas Holding AG (HNBA) ........................ 1,890 55
Dresdner Bank AG (BANK) .......................... 18,460 760
E.On AG (DIOP) ................................... 26,298 1,268
EM.TV & Merchandising AG (MEDI) .................. 4,391 259
Fresenius Medical Care AG (HEAL) ................. 2,350 187
Heidelberg Zement (CONS) ......................... 2,530 156
Heidelberger Zement AG * (CONS) .................. 2,096 64
Hochtief AG (CONS) ............................... 3,810 116
Kamps AG (FOOD) .................................. 2,666 85
Karstadt AG (RETS) ............................... 6,800 177
Linde AG (ENGI) .................................. 3,300 133
Lufthansa AG (TRAN) .............................. 14,730 340
MAN AG (DIOP) .................................... 4,400 133
Merck KGaA (HEAL) ................................ 7,360 235
Metro AG * (RETS) ................................ 9,200 325
81
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Germany - Continued
Muenchener
Rueckversicherungs-Gesellschaft AG -
Reg. (INSU) ..................................... 5,760 $ 1,809
Preussag AG (DIOP) ............................... 6,400 207
RWE AG (OILX) .................................... 14,500 491
SAP AG (SOFT) .................................... 6,360 950
Schering AG (HEAL) ............................... 4,890 268
SGL Carbon AG (CHEM) ............................. 1,190 79
Siemens AG (DIOP) ................................ 21,110 3,184
Thyssen Krupp AG (CONS) .......................... 16,413 267
Volkswagen AG (AUTO) ............................. 11,100 421
WCM Beteiligungs-und Grundbesitz AG
(DIOP) .......................................... 8,537 200
---------
27,732
Greece - 0.5%
Alpha Credit Bank (BANK) ......................... 4,410 174
Commercial Bank of Greece (BANK) ................. 1,780 77
EFG Eurobank * (BANK) ............................ 1,680 44
Ergo bank SA (BANK) .............................. 2,280 44
Hellenic Bottling Co. SA (FOOD) .................. 3,500 56
Hellenic Telecommunication Organization
SA (UTIT) ....................................... 13,420 329
Intracom SA (TELE) ............................... 2,240 82
National Bank of Greece SA (BANK) ................ 6,440 254
Titan Cement Co. SA (CONS) ....................... 1,400 53
---------
1,113
Hong Kong - 0.9%
Cable & Wireless HKT, Ltd. (TELS) ................ 135,800 300
Cheung Kong (Holdings), Ltd. (READ) .............. 23,000 253
CLP Holdings, Ltd. (UTIE) ........................ 31,500 147
Hang Seng Bank, Ltd. (BANK) ...................... 22,700 215
Hutchison Whampoa, Ltd. (COMM) ................... 60,500 760
New World Development Co., Ltd. (READ) ........... 27,000 30
Sun Hung Kai Properties, Ltd. (REIT) ............. 25,000 179
Swire Pacific, Ltd. - Cl. A (DIOP) ............... 23,500 138
Wharf (Holdings), Ltd. (DIOP) .................... 44,000 79
---------
2,101
Hungary - 0.3%
Fotex Rt. (RETS) ................................. 40,400 47
Gedeon Richter Rt. (HEAL) ........................ 2,600 140
Magyar Tavkozlesi Rt. (UTIT) ..................... 36,200 252
MOL Magyar Olaj-es Gazipari Rt. (OILX) ........... 6,000 82
OTP Bank Rt. (BANK) .............................. 2,300 120
---------
641
India - 0.8%
Arvind Mills, Ltd. - GDR (APPA) .................. 378,700 114
Bajaj Auto, Ltd. - GDR (AUTO) .................... 14,300 127
Century Textiles & Industries, Ltd. - GDR (DIOP) . 33,200 35
EIH, Ltd. - GDR (REAL) ........................... 7,800 19
Grasim Industries, Ltd. - GDR (DIOP) ............. 24,760 193
Gujarat Ambuja Cements, Ltd. - GDR (CONS) ........ 23,800 98
Hindalco Industries, Ltd. - GDR (META) ........... 5,500 106
India Cements, Ltd. - GDR (CONS) ................. 39,800 38
Indian Hotels Co., Ltd. - GDR (REAL) ............. 8,500 45
Indian Rayon and Industries, Ltd. - GDR
(DIOP) .......................................... 15,200 24
ITC, Ltd. - GDR * (FOOD) ......................... 13,600 255
Larsen & Toubro, Ltd. - GDR (DIOP) ............... 13,500 146
Mahindra & Mahindra, Ltd. - GDR *
(AUTO) .......................................... 8,600 39
Ranbaxy Laboratories, Ltd. - GDR (HEAL) .......... 5,700 91
Reliance Industries, Ltd. - GDR *
(CHEM) .......................................... 27,000 560
Tata Engineering and Locomotive Co.,
Ltd. - GDR (AUTO) ............................... 26,700 71
---------
1,961
Ireland - 0.4%
Allied Irish Banks plc (BANK) .................... 26,800 240
CRH plc (CONS) ................................... 13,300 240
Eircom plc * (TELS) .............................. 60,667 162
Greencore Group plc (FOOD) ....................... 26,000 69
Irish Life & Permanent plc (FINL) ................ 9,553 81
Jefferson Smurfit Group plc (CONT) ............... 30,400 52
Kerry Group plc (FOOD) ........................... 8,400 110
---------
954
Israel - 0.5%
Bank Hapoalim (BANK) ............................. 43,700 127
Bezeq Israeli Telecommunication Corp.,
Ltd. (UTIT) ..................................... 28,300 158
First International Bank of Israel,
Ltd. (1) (BANK) ................................. 33,700 49
First International Bank of Israel,
Ltd. (5) (BANK) ................................. 6,500 47
IDB Holding Corp., Ltd. (FUND) ................... 10,400 400
Industrial Building Corp. (CONS) ................. 45,100 66
Makteshim-Agan Industries, Ltd. *
(CHEM) .......................................... 26,900 60
Supersol, Ltd. * (RETF) .......................... 40,900 148
Teva pharmaceutical Industries, Ltd.
(HEAL) .......................................... 3,200 174
---------
1,229
Italy - 8.0%
Alitalia SpA (TRAN) .............................. 60,000 124
Assicurazioni Generali (INSU) .................... 60,382 2,070
Autogrill SpA (RETF) ............................. 10,001 107
82
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Italy - Continued
Banca Intesa SpA (BANK) .......................... 183,800 $ 823
Banca Intesa SpA - RNC (BANK) .................... 37,400 89
Banca Popolare di Milano (BANK) .................. 18,100 130
Benetton Group SpA (APPA) ........................ 103,979 217
Beni Stabili SpA * (REAL) ........................ 62,154 33
Bulgari SpA (RETS) ............................... 18,900 253
Enel SpA * (UTIE) ................................ 248,583 1,101
ENI SpA (OILS) ................................... 328,800 1,899
Fiat SpA (AUTO) .................................. 22,350 528
Fiat SpA - RNC (AUTO) ............................ 3,720 51
Immsi SpA * (REAL) ............................... 11,100 16
Italcementi SpA (CONS) ........................... 10,920 103
Italgas SpA (UTIG) ............................... 40,300 178
La Rinascente SpA (CONS) ......................... 10,500 60
Marzotto & Figli SpA (APPA) ...................... 7,500 61
Mediaset SpA (MEDI) .............................. 51,200 782
Mediobanca SpA (FUND) ............................ 24,000 247
Mondadori (Arnoldo) Editore SpA (MEDP) ........... 8,400 192
Olivetti SpA (COMM) .............................. 198,400 722
Parmalat Finanziaria SpA (FOOD) .................. 77,600 110
Pirelli SpA (DIOP) ............................... 81,100 213
Riunione Adriatica di Sicorta SpA (INSU) ......... 25,379 279
Riunione Adriatica di Sicorta SpA - RNC (INSU) ... 13,920 110
SAI spa (INSU) ................................... 4,300 76
San Paolo-IMI SpA (BANK) ......................... 62,154 1,103
Sirti SpA (TELE) ................................. 11,100 18
Telecom Italia Mobile SpA (TELS) ................. 280,100 2,861
Telecom Italia Mobile SpA - RNC (TELS) ........... 80,700 406
Telecom Italia SpA (TELS) ........................ 161,500 2,220
Telecom Italia SpA - RNC (TELS) .................. 47,300 314
UniCredito Italiano SpA (BANK) ................... 201,600 964
---------
18,460
Japan - 30.6%
77 Bank, Ltd. (BANK) ............................. 18,000 144
Acom Co., Ltd. (LEND) ............................ 4,200 353
Advantest (ETRN) ................................. 2,900 646
Ajinomoto Co., Inc. (FOOD) ....................... 20,000 256
Alps Electric Co. (ETRN) ......................... 7,000 130
Amada Co., Ltd (MACH) ............................ 13,000 110
Aoyama Trading Co. (RETS) ........................ 2,600 37
Arabian Oil Co., Ltd. (OILS) ..................... 4,200 14
Asahi Bank, Ltd. (BANK) .......................... 73,000 307
Asahi Breweries, Ltd. (FOOD) ..................... 13,000 155
Asahi Chemical Industry Co., Ltd. (CHEM) ......... 42,000 297
Asahi Glass Co., Ltd. (APPL) ..................... 39,000 436
Bank of Tokyo-Mitsubishi (BANK) .................. 127,000 1,533
Bank of Yokohama, Ltd. (BANK) .................... 22,000 98
Benesse Corp. (COMM) ............................. 2,600 180
Bridgestone Corp. (PART) ......................... 21,000 444
Canon, Inc. (COMM) ............................... 22,000 1,095
Casio Computer Co. (ETRN) ........................ 9,000 101
Central Japan Railway Co. (TRAN) ................. 81 458
Chiyoda Corp. * (ENGI) ........................... 16,000 17
Citizen Watch Co., Ltd. (RETS) ................... 10,000 96
Cosmo Oil Co., Ltd. (OILX) ....................... 33,000 61
Credit Saison Co., Ltd. (FINL) ................... 5,600 130
CSK Corp. (SOFT) ................................. 3,200 99
Dai Nippon Printng Co., Ltd. (COMM) .............. 19,000 335
Daicel Chemical Industries, Ltd. (CHEM) .......... 16,000 52
Daiichi Pharmaceutical Co., Ltd. (HEAL) .......... 10,000 254
Daikin Industries, Ltd. (CONS) ................... 10,000 232
Dainippon Ink & Chemicals, Inc. (CHEM) ........... 28,000 132
Dainippon Screen Manufacturing Co., Ltd. (ELEQ) .. 9,000 86
Daito Trust Construction Co., Ltd. (REAL) ........ 2,200 36
Daiwa House Industry Co., Ltd. (HOUS) ............ 17,000 124
Daiwa Securities Group, Inc. (FUND) .............. 37,000 488
Denso Corp. (ETRN) ............................... 18,000 438
East Japan Railway Co. (TRAN) .................... 107 621
Ebara Corp. (MACH) ............................... 9,000 122
Eisai Co. Ltd. (HEAL) ............................ 10,000 320
Fanuc, Ltd. (ELEQ) ............................... 6,800 691
Fuji Bank, Ltd. (BANK) ........................... 95,000 722
Fuji Photo Film (LEIS) ........................... 14,000 573
Fuji Soft ABC, Inc. (SOFT) ....................... 1,000 59
Fujikura (ELEQ) .................................. 11,000 73
Fujitsu, Ltd. (ELEQ) ............................. 51,000 1,764
Furukawa Electric Co. (TELE) ..................... 10,000 209
Hankyu Corp. (TRAN) .............................. 23,000 76
Hirose Electric Co., Ltd. (ETRN) ................. 1,500 233
Hitachi Zosen Corp. (CONS) ....................... 52,000 47
Hitachi, Ltd. (ETRN) ............................. 88,000 1,269
Honda Motor Co. (AUTO) ........................... 26,000 885
Hoya Corp. (ETRN) ................................ 4,000 358
Industrial Bank of Japan (BANK) .................. 65,000 493
Isetan Co., Ltd. (RETS) .......................... 14,000 172
Ito-Yokado Co., Ltd. (RETS) ...................... 12,000 722
Itochu Corp. (DIOP) .............................. 48,000 242
Japan Airlines Co., Ltd. (TRAN) .................. 63,000 239
Japan Energy Corp. (OILX) ........................ 86,000 92
Japan Tobacco, Inc. (FOOD) ....................... 38 333
Joyo Bank, Ltd. (BANK) ........................... 29,000 112
JUSCO Co., Ltd. * (RETS) ......................... 11,000 208
Kajima Corp. (CONS) .............................. 35,000 111
Kaneka Corp. (CHEM) .............................. 5,000 55
Kansai Electric Power Co., Inc. (UTIE) ........... 22,800 408
83
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
KAO Corp. (HNBA) ................................. 16,000 $ 489
Kawasaki Heavy Industry, Ltd. (DIOP) ............. 46,000 70
Kawasaki Steel Corp. (STEE) ...................... 100,000 143
Keihin Electric Express Railway Co., Ltd. (TRAN) . 35,000 132
Kinden Corp. (ENGI) .............................. 12,000 75
Kinki Nippon Railway (TRAN) ...................... 35,000 142
Kirin Brewery Co. (FOOD) ......................... 21,000 262
Kokuyo Co. (COMM) ................................ 6,000 98
Komatsu, Ltd. (MACH) ............................. 30,000 211
Komori Corp. (MACH) .............................. 4,000 70
Konami Co., Ltd. (COMP) .......................... 2,600 164
Konica Corp. (LEIS) .............................. 17,000 144
Kubota Corp. (MACH) .............................. 48,000 174
Kuraray Co., Ltd. (APPA) ......................... 10,000 115
Kurita Water Industries, Ltd. (POLL) ............. 5,000 110
Kyocera Corp. (ETRN) ............................. 5,600 949
Makita Corp. (CNSU) .............................. 8,000 76
Marubeni Corp. (DIOP) ............................ 23,000 79
Marui Co., Ltd. (RETS) ........................... 13,000 249
Matsushita Electric Industrial Co. (ETRN) ........ 61,000 1,581
Minebea Co., Ltd. (CHEM) ......................... 4,000 50
Mitsubishi Chemical Corp. (CHEM) ................. 61,000 250
Mitsubishi Corp. (DIOP) .......................... 44,000 398
Mitsubishi Electric Corp. (ETRN) ................. 52,000 563
Mitsubishi Estate Co., Ltd. (REAL) ............... 37,000 435
Mitsubishi Heavy Industries, Ltd. (MACH) ......... 90,000 399
Mitsubishi Logistcs Corp. (TRAN) ................. 7,000 63
Mitsubishi Materials Corp. (PMET) ................ 39,000 160
Mitsubishi Rayon Co., Ltd. (APPA) ................ 27,000 82
Mitsubishi Trust & Banking Corp. (BANK) .......... 37,000 287
Mitsui & Co., Ltd. (DIOP) ........................ 31,000 237
Mitsui Engineering & Shipbuilding Co.,
Ltd. * (CONS) ................................... 48,000 46
Mitsui Fudosan Co., Ltd. (REAL) .................. 24,000 260
Mitsui Marine & Fire Insurance Co.,
Ltd. (INSU) ..................................... 25,000 120
Mitsui Mining & Smelting Co., Ltd.
(META) .......................................... 17,000 129
Mitsukoshi, Ltd. (RETS) .......................... 14,000 62
Mori Seiki Co., Ltd. (MACH) ...................... 5,000 77
Murata Manufacturing Co., Ltd. (ETRN) ............ 7,000 1,004
Mycal Corp. (RETS) ............................... 20,000 68
NAMCO, Ltd. (LEIS) ............................... 3,800 137
NEC Corp. (COMP) ................................. 43,000 1,350
NGK Insulators (PART) ............................ 13,000 161
NGK Spark Plug Co. (PART) ........................ 11,000 170
Nichiei Co., Ltd. (LEND) ......................... 1,500 25
Nidec Corp. (MACH) ............................... 2,000 173
Nikon Corp. (LEIS) ............................... 11,000 407
Nintendo Corp., Ltd. (LEIS) ...................... 3,800 663
Nippon Comsys Corp. (ENGI) ....................... 6,000 128
Nippon Express Co., Ltd. (TRAN) .................. 31,000 190
Nippon Mitsubishi Oil Co., Ltd. (OILX) ........... 27,000 124
Nippon Paper Industries Co. (PAPR) ............... 25,000 171
Nippon Steel Co. (STEE) .......................... 133,000 280
Nippon Telegraph & Telephone Corp. (UTIT) ........ 346 4,598
Nippon Yusen Kabushiki Kaisha (TRAN) ............ 54,000 260
Nissan Motor Acceptance Corp. (FINL) ............. 64,000 377
Nitto Denko Corp. (ETRN) ......................... 4,000 154
Nomura Securities Co., Ltd. (FUND) ............... 58,000 1,418
NSK, Ltd. (META) ................................. 20,000 175
NTN Corp. (METP) ................................. 23,000 98
Obayashi Corp. (CONS) ............................ 22,000 97
Oji Paper Co. (PAPR) ............................. 27,000 186
Okuma Corp. (MACH) ............................... 11,000 48
Olympus Optical Co. (LEIS) ....................... 11,000 197
Omron Corp. (ETRN) ............................... 8,000 217
Onward Kashiyama Co., Ltd. (APPA) ................ 9,000 122
Oriental Land Co., Ltd. (LEIS) ................... 2,000 204
Orix Corp. (FINL) ................................ 2,400 354
Osaka Gas Co. (UTIG) ............................. 81,000 233
Pioneer Corp. (ETRN) ............................. 6,000 234
Promise Co., Ltd. (LEND) ......................... 2,600 205
RENOWN, Inc. (APPA) .............................. 23,000 34
Rohm Co., Ltd. (ETRN) ............................ 4,000 1,169
Sakura Bank, Ltd. (BANK) ......................... 116,000 801
Sankyo Co., Ltd. (HEAL) .......................... 13,000 293
Sanrio Co., Ltd. * (CNSU) ........................ 3,000 80
Sanyo Electric Co. (ETRN) ........................ 56,000 503
Secom Co. (ETRN) ................................. 8,000 584
Sega Enterprises (CNSU) .......................... 4,300 66
Sekisui Chemical Co. (CHEM) ...................... 20,000 77
Sekisui House, Ltd. (CONS) ....................... 25,000 231
Sharp Corp. (ETRN) ............................... 31,000 548
Shimamura Co., Ltd. (RETS) ....................... 1,000 117
SHIMANO, Inc. (LEIS) ............................. 5,000 120
Shimizu Corp. (CONS) ............................. 29,000 83
Shin-Etsu Chemical Co. (CHEM) .................... 9,000 456
Shionogi & Co., Ltd. (HEAL) ...................... 14,000 266
Shiseido Co., Ltd. (CHEM) ........................ 14,000 216
Shizuoka Bank, Ltd. (BANK) ....................... 19,000 161
Showa Shell Sekiyu K.K. (OILX) ................... 21,000 104
SMC Corp. (MACH) ................................. 2,000 376
Softbank Corp. (BANK) ............................ 9,000 1,221
Sony Corp. (ETRN) ................................ 26,000 2,426
Sumitomo Bank (BANK) ............................. 86,000 1,054
Sumitomo Chemical Co. (CHEM) ..................... 48,000 289
Sumitomo Corp. (DIOP) ............................ 22,000 247
Sumitomo Electric Industries (DIOP) .............. 19,000 326
Sumitomo Heavy Industry (MACH) ................... 31,000 104
84
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Sumitomo Marine & Fire Insurance Co.,
Ltd. (INSU) ..................................... 24,000 $ 140
Sumitomo Metal Industries (STEE) ................. 102,000 70
Sumitomo Metal Mining Co. (PMET) ................. 17,000 80
Taisho Pharmaceutical Co., Ltd. (HEAL) ........... 10,000 358
Taiyo Yuden Co., Ltd. (ELEQ) ..................... 4,000 250
Takashimaya Co. (RETS) ........................... 12,000 112
Takeda Chemical Industries (CHEM) ................ 24,000 1,574
Takefuji Corp. (LEND) ............................ 5,000 604
Teijin, Ltd. (APPA) .............................. 30,000 146
Teikoku Oil Co., Ltd. (OILX) ..................... 19,000 62
Terumo Corp. (HEAL) .............................. 4,000 135
The Chuo Mitsui Trust and Banking Co.,
Ltd. (BANK) ..................................... 8,000 35
The Daiwa Bank, Ltd. (BANK) ...................... 39,000 101
Tobu Railway Co., Ltd. (TRAN) .................... 36,000 103
Toho Co., Ltd. (MEDI) ............................ 1,200 204
Tohoku Electric Power (UTIE) ..................... 13,000 175
Tokai Bank Ltd. (BANK) ........................... 53,000 261
Tokio Marine & Fire Insurance Co. (INSU) ......... 42,000 484
Tokyo Broadcasting (MEDI) ........................ 7,000 302
Tokyo Dome Corp. (LEIS) .......................... 7,000 32
Tokyo Electric Power (UTIE) ...................... 35,700 870
Tokyo Electron, Ltd. (ETRN) ...................... 5,000 684
Tokyo Gas Co. (UTIG) ............................. 27,000 76
Tokyu Corp. (TRAN) ............................... 26,000 128
Toppan Printing Co. (CNSU) ....................... 20,000 211
Toray Industries, Inc. (APPA) .................... 33,000 134
Toshiba Corp. (ETRN) ............................. 78,000 880
Tostem Corp. (CONS) .............................. 8,000 130
Toto, Ltd. (APPL) ................................ 13,000 100
Toyo Seikan Kaisha, Ltd. (CONT) .................. 8,000 149
Toyota Motor Corp. (AUTO) ........................ 99,000 4,507
Trans Cosmos, Inc. (SOFT) ........................ 700 105
Uni-Charm Corp. (PAPR) ........................... 3,000 182
UNY Co., Ltd. (RETS) ............................. 11,000 152
Wacoal Corp. (APPA) .............................. 11,000 112
Yamaha Corp. (LEIS) .............................. 6,000 66
Yamanouchi Pharmaceutical Co., Ltd. (HEAL) ....... 10,000 546
Yamato Transport Co., Ltd. (TRAN) ................ 14,000 348
Yokogawa Electric (ETRN) ......................... 11,000 110
---------
70,432
Mexico - 1.1%
Alfa, SA * (DIOP) ................................ 16,000 37
Apasco SA de CV (CONS) ........................... 6,000 34
Cemex SA de CV - CPO * (CONS) .................... 34,000 159
Cifra SA de CV - Ser. V (RETS) ................... 96,000 225
Desc SA de CV - Ser. B (DIOP) .................... 39,000 25
Fomento Economico Mexicano SA de CV (FOOD) ....... 20,000 85
Grupo Carso SA de CV - Ser. A1 (DIOP) ............ 24,000 85
Grupo Financiero Banamex Accival SA de
CV (Banacci) (FINL) ............................. 35,000 147
Grupo Financiero Bancomer SA de CV -
Cl. O (FINL) .................................... 157,000 80
Grupo Mexico SA - Ser. B (META) .................. 18,000 51
Grupo Modelo SA de CV - Ser. C (FOOD) 62,000 144
Grupo SA de CV - Ser. A (FOOD) ................... 24,000 38
Grupo Televisa SA * (MEDI) ....................... 60,000 206
Industrias Penoles SA * (META) ................... 20,000 32
Kimberly-Clark de Mexico SA de CV (PAPR) ......... 47,000 134
Telephonos de Mexico SA - Ser. L (UTIT) 326,000 930
Wal-Mart de Mexico SA de CV - Ser. C (RETS) ...... 25,000 58
--------
2,470
Netherlands - 2.6%
ABN Amro Holding NV (BANK) ....................... 18,400 451
Aegon NV (INSU) .................................. 19,000 676
Akzo Nobel NV (CHEM) ............................. 3,850 164
ASM Lithography Holding NV (COMP) ................ 3,000 129
Elsevier NV (MEDP) ............................... 10,500 127
Heineken NV (FOOD) ............................... 4,375 266
ING Groep NV (BANK) .............................. 9,800 662
Koninklije KPN NV (TELS) ......................... 13,112 587
Koninklijke Ahold NV (RETF) ...................... 7,000 206
Koninklijke Philips Electronics NV (ETRN) ........ 15,728 742
Royal Dutch Petroleum Co. (OILE) ................. 22,650 1,408
TNT Post Group NV (TRAN) ......................... 5,610 151
Unilever NV - CVA (CNSU) ......................... 5,819 267
Wolters Kluwer NV - CVA (MEDP) ................... 4,400 117
--------
5,953
New Zealand - 0.2%
Carter Holt Harvey, Ltd. (PAPR) .................. 88,200 76
Telecom Corp. of New Zealand, Ltd.
(TELS) .......................................... 98,600 345
--------
421
Norway - 0.7%
ASK Proxima ASA * (COMP) ......................... 3,520 40
Den Norske Bank (BANK) ........................... 28,960 120
Kvaerner ASA - B Shares (CONS) ................... 1,900 17
Kvaerner plc (CONS) .............................. 3,140 33
Leif Hoegh & Co. ASA (TRAN) ...................... 8,340 73
Merkantildata ASA (SOFT) ......................... 4,300 22
Norsk Hydro ASA (DIOP) ........................... 9,340 392
85
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Norway - Continued
Norske Skogsindustrier ASA - Cl. A
(PAPR) .......................................... 2,500 $ 71
Orkla ASA (DIOP) ................................. 23,420 445
Petroleum Geo-Services ASA (OILE) ................ 6,240 106
Smedvig ASA - A Shares (OILS) .................... 4,800 87
Smedvig ASA - B Shares (OILS) .................... 5,200 85
Storebrand ASA (INSU) ............................ 13,040 94
Tomra Systems ASA (COMM) ......................... 1,600 42
---------
1,627
Peru - 0.0%
Credicorp, Ltd. (BANK) ........................... 3,600 33
Philippines - 0.1%
Ayala Land, Inc. (READ) .......................... 218,760 28
Metropolitan Bank & Trust Co. (BANK) ............. 13,090 61
Petron Corp. (OILS) .............................. 468,400 15
Philippine Long Distance Telephone Co.
(UTIT) .......................................... 3,200 57
SM Prime Holdings, Inc. (READ) ................... 545,000 66
---------
227
Portugal - 0.6%
Banco Comercial Portgues, SA (BANK) .............. 33,000 172
Banco Espirito Santo SA (BANK) ................... 1,100 27
BPI-SGPS, SA - Registered Shares (FUND) 32,490 115
Brisa-Auto Estradas de Portugal, SA
(CONS) .......................................... 8,375 72
EDP-Electricidade de Portugal SA (UTIE) .......... 13,500 245
Jeronimo Martins, SGPS, SA (FOOD) ................ 3,600 59
Portugal Telecom, SA (TELS) ...................... 46,000 516
Sonae SGPS, SA (RETS) ............................ 30,000 53
Sonae, SGPS, SA (RETS) ........................... 10,000 18
---------
1,277
Singapore - 0.3%
City Developments, Ltd. (READ) ................... 41,000 159
Cycle & Carriage, Ltd. (AUTO) .................... 4,000 9
DBS Group Holdings, Ltd. (BANK) .................. 9,000 116
First Capital Corp., Ltd. (READ) ................. 31,000 30
Hotel Properties, Ltd. (REAL) .................... 50,000 45
Singapore Telecommunications, Ltd.
(TELS) .......................................... 114,000 167
United Overseas Bank, Ltd. (BANK) ................ 8,448 55
---------
581
South Africa - 1.0%
ABSA Group, Ltd. (BANK) .......................... 24,600 93
Anglo American Platinum Corp., Ltd.
(PMET) .......................................... 5,400 155
Barlow, Ltd. (DIOP) .............................. 11,700 70
De Beers Centenary AG (UTIE) ..................... 9,100 221
Dimension Data Holdings, Ltd. (COMP) ............. 16,983 140
FirstRand, Ltd. (FINL) ........................... 164,400 169
Foschini, Ltd. * (RETS) .......................... 37,100 63
Impala Platinum Holdings, Ltd. (META) ............ 2,600 97
Imperial Holdings, Ltd. (DIOP) ................... 9,815 80
Investec Group, Ltd. (FUND) ...................... 2,300 77
JD Group, Ltd. (APPL) ............................ 6,400 42
Liberty Life Association of Africa,
Ltd. (INSU) ..................................... 12,400 118
M-Cell, Ltd. (TELS) .............................. 40,200 195
Metropolitan Life, Ltd. (INSU) ................... 30,200 39
Nampak, Ltd. (CONT) .............................. 25,500 55
Nedcor, Ltd. (BANK) .............................. 6,600 139
Pepkor, Ltd. * (RETS) ............................ 9,700 35
Rembrandt Group, Ltd. (DIOP) ..................... 15,300 148
Sappi, Ltd. (READ) ............................... 10,900 82
Sasol, Ltd. (OILX) ............................... 12,800 86
South African Breweries plc (FOOD) ............... 19,300 144
---------
2,248
South Korea - 1.4%
Cheil Jedang Corp. (FOOD) ........................ 2,136 98
Hankook Tire Co., Ltd. (PART) .................... 18,570 38
Housing & Commercial Bank, Korea (BANK) .......... 1,672 39
Hyundai Motor Co., Ltd. (AUTO) ................... 7,570 97
Kookmin Bank (BANK) .............................. 8,310 106
Korea Electric Power Corp. (UTIE) ................ 14,790 459
L.G. Chemicals, Ltd. (CHEM) ...................... 4,630 92
LG Electronics (ETRN) ............................ 3,990 112
LG Investment & Securities Co., Ltd.
(FINL) .......................................... 1,800 23
Pohang Iron & Steel Co., Ltd. (STEE) ............. 1,570 133
Samsung Corp. (ETRN) ............................. 6,120 53
Samsung Display Devices Co. (ETRN) ............... 2,610 125
Samsung Electro-Mechanics Co. (ETRN) ............. 2,690 169
Samsung Electronics (ETRN) ....................... 3,840 1,271
Samsung Fire & Marine Insurance (INSU) ........... 2,272 63
Shinhan Bank (BANK) .............................. 7,310 69
SK Corp. (OILS) .................................. 4,651 85
SK Telecom Co., Ltd. (TELS) ...................... 800 262
---------
3,294
Spain - 3.1%
Altadis * (FOOD) ................................. 7,714 118
Autopistas Concesionaria Espanola SA
(TRAN) .......................................... 13,503 117
Banco Bilbao Vizcaya SA (BANK) ................... 86,800 1,297
86
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Spain - Continued
Banco Santander Central Hispano SA
(BANK) .......................................... 90,100 $ 951
Corporacion Financiera Alba SA (FUND) 6,000 158
Corporacion Mapfre SA (INSU) ..................... 2,100 27
Endesa SA (UTIE) ................................. 28,100 544
Fomento de Construcciones y Contratas
S.A. (CONS) ..................................... 4,600 87
Gas Natural SDG SA - E Shares (UTIG) ............. 13,800 248
Grupo Dragados SA (CONS) ......................... 8,400 60
Iberdrola SA (UTIE) .............................. 27,500 354
Repsol SA (OILX) ................................. 30,000 597
Sociedad General de Aguas de Barcelona
SA (FOOD) ....................................... 8,484 113
Sol Melia SA (LEIS) .............................. 5,700 64
Telefonica SA (UTIT) ............................. 96,145 2,065
TelePizza, SA * (RETF) ........................... 3,078 17
Union Electrica Fenosa SA (UTIE) ................. 12,200 221
Vallehermoso SA (READ) ........................... 8,700 52
Zardoya Otis SA (MACH) ........................... 8,866 79
---------
7,169
Sweden - 2.0%
Drott AB - B Shares (REAL) ....................... 10,200 110
ForeningsSparbanken AB (BANK) .................... 8,700 127
Hennes & Mauritz AB - B Shares (RETS) ............ 13,800 288
NetCom Systems, Inc. - Cl. B (TELS) .............. 2,032 150
NORDIC BALTIC Holding (BANK) ..................... 29,219 213
Nordic Baltic Holdings (BANK) .................... 20,910 156
SANDVIK AB (MACH) ................................ 4,950 104
Securitas AB - B Shares (COMM) ................... 9,200 195
Skand Enskilda Banken - Cl. A (BANK) ............. 10,200 121
Skandia Forsakrings AB (INSU) .................... 19,000 502
Skanska AB (CONS) ................................ 3,100 110
Svenska Cellulosa AB - Cl. B (PAPR) .............. 4,500 85
Svenska Handelsbanken, Inc. - A Shares
(BANK) .......................................... 6,350 92
Telefonaktiebolaget LM Ericsson AB *
(TELS) .......................................... 112,000 2,216
Volvo AB (AUTO) .................................. 5,750 125
---------
4,594
Switzerland - 1.6%
ABB, Ltd. * (ENGI) ............................... 2,168 259
ABB, Ltd. * (ENGI) ............................... 1,879 218
Adecco SA - Reg. (COMM) .......................... 60 51
Credit Suisse Group - Reg. (BANK) ................ 1,970 392
Givaudan * (TELS) ................................ 55 17
Nestle SA (FOOD) ................................. 260 520
Novartis AG - Reg. (HEAL) ........................ 380 602
Roche Holding AG (HEAL) .......................... 10 106
Roche Holding AG (HEAL) .......................... 45 438
Schweizerische
Rueckversicherungs-Gesellschaft (INSU) .......... 110 224
Swisscom AG - Reg. (UTIT) ........................ 340 118
UBS AG (BANK) .................................... 3,226 472
Zurich Allied AG (INSU) .......................... 340 168
---------
3,585
Thailand - 0.2%
ABN Amro Asia Secuities Public Co.,
Ltd. (FINL) ..................................... 23,000 18
ADVANCE AGRO (PAPR) .............................. 69,000 31
Bangkok Insurance Public Co., Ltd.
(INSU) .......................................... 12,200 32
Electricity Generating Public, Co.,
Ltd. - Foreign R Shares (UTIE) .................. 42,200 45
Italian-Thai Development Public Co.,
Ltd. (CONS) ..................................... 37,400 55
National Petrochemical Public Co., Ltd.
(CHEM) .......................................... 42,100 33
PTT Exploration and Production Public
Co., Ltd. (OILX) ................................ 11,100 54
Saha-Union Public Co., Ltd. (APPA) ............... 102,700 28
Sermsuk Public Co., Ltd. (FOOD) .................. 7,300 18
Siam Cement Public Co., Ltd. (CONS) .............. 4,000 75
TelecomAsia Corp. Public Co., Ltd. *
(UTIT) .......................................... 113,200 126
Thai Reinsurance Public Co., Ltd.
(INSU) .......................................... 36,200 31
---------
546
Turkey - 0.4%
Arcelik AS (APPL) ................................ 3,276,000 161
Kartonsan Karton Sanayi Ve Ticaret AS
(PAPR) .......................................... 1,083,000 64
Migros Turk T.A.S. (RETF) ........................ 387,000 72
Turkiye Garanti Bankasi AS (BANK)................. 12,113,000 146
Turkiye Is Bankasi (Isbank) - Cl. C
(BANK) .......................................... 11,517,060 246
Yapi ve Kredi Bankasi AS (BANK) .................. 12,211,870 136
---------
825
United Kingdom - 7.3%
Abbey National First Capital BV (BANK) ........... 16,000 191
Allied Zurich plc * (INSU) ....................... 18,600 220
AstraZeneca Group plc (HEAL) ..................... 18,239 851
Barclay's plc (BANK) ............................. 15,300 380
Bass plc (FOOD) .................................. 11,100 125
BG Group plc (UTIG) .............................. 37,866 245
BOC Group plc (CHEM) ............................. 7,000 101
Boots Co. plc (RETD) ............................. 10,700 81
BP Amoco plc (OILE) .............................. 179,100 1,718
British Aerospace plc (AERO) ..................... 32,263 201
British Airways plc (TRAN) ....................... 18,800 108
87
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
British American Tobacco plc * (FOOD) ............ 18,600 $ 124
British Land Co. plc (REAL) ...................... 7,200 44
British Sky Broadcast plc (MEDI) ................. 19,900 389
British Telecommunications plc (TELS) ............ 60,500 782
Burmah Castrol plc (OILS) ........................ 1,750 44
Cadbury Schweppes plc (FOOD) ..................... 26,600 175
Carlton Communications plc (MEDI) ................ 16,300 210
Centrica plc * (UTIG) ............................ 58,900 197
CGU plc (INSU) ................................... 9,300 155
Diageo plc (FOOD) ................................ 11,000 99
EMI Group plc (LEIS) ............................. 12,400 113
GKN plc (AUTO) ................................... 9,200 117
Glaxo Wellcome plc (HEAL) ........................ 32,110 936
Granada Group plc (DIOP) ......................... 23,400 234
Halifax Group plc (LEND) ......................... 14,100 135
Hilton Group plc (LEIS) .......................... 20,700 73
HSBC Holdings plc (BANK) ......................... 68,800 787
HSBC Holdings plc (BANK) ......................... 24,900 285
Imperial Chemical Industries plc (CHEM) .......... 1,700 14
Invensys, plc (DIOP) ............................. 74,985 281
J Sainsbury plc (RETF) ........................... 24,100 109
Kingfisher plc (RETS) ............................ 15,900 145
Land Securities plc (REAL) ....................... 8,400 100
Legal & General Group plc (INSU) ................. 62,800 147
Lloyds TSB Group plc (BANK) ...................... 51,200 483
Logica plc (SOFT) ................................ 7,100 168
Marconi plc (TELE) ............................... 28,600 372
Marks & Spencer plc (RETS) ....................... 19,900 70
National Grid Group plc (UTIE) ................... 22,500 177
National Power plc (UTIE) ........................ 16,500 105
Pearson plc (MEDP) ............................... 8,100 257
Peninsular & Oriental Steam Navigation
Co. (TRAN) ...................................... 10,300 88
Prudential Corp. (INSU) .......................... 20,900 306
Railtrack Group plc (TRAN) ....................... 6,700 104
Rank Group plc (DIOP) ............................ 16,000 37
Reed International plc (MEDP) .................... 15,400 134
Reuters Group plc (BUSI) ......................... 15,900 271
Rio Tinto plc - Reg. (DIOP) ...................... 11,900 195
Royal Bank of Scotland Group (BANK) .............. 11,500 192
Schroders (BANK) ................................. 4,050 73
Scottish Power plc (UTIE) ........................ 17,100 145
SmithKline Beecham plc (HEAL) .................... 51,500 674
Tesco plc (RETF) ................................. 67,200 209
The Great Universal Stores plc (RETS) ............ 11,800 76
The Sage Group plc (MEDI) ........................ 25,400 206
Unilever plc (CNSU) .............................. 26,703 162
United Utilities plc (AGRI) ...................... 10,400 103
Vodafone AirTouch plc (TELS) ..................... 543,618 2,196
---------
16,719
United States - 0.0%
Great Eastern Shipping Co. - GDR * (TRAN) ........ 18,720 31
---------
TOTAL COMMON STOCK- 94.7% 218,302
PREFERRED STOCK
Australia - 0.2%
News Corp., Ltd. (MEDI) .......................... 34,800 420
Brazil - 0.8%
Aracruz Celulose SA - Cl. B (PAPR) ............... 38,000 72
Banco Bradesco SA (BANK) ......................... 15,494,000 135
Banco Itau SA (BANK) ............................. 1,240,000 109
Centrais Electricas Brasileires SA -
Cl. B (UTIE) .................................... 3,137,000 70
Companhia Cervejaria Brahma (FOOD) ............... 101,000 86
Companhia Energetica de Minas Gerais -
CEMIG (UTIE) .................................... 3,565,000 62
Companhia Vale do Rio Doce - Cl. A * (META) ...... 8,000 226
Embratel Participacoes SA (UTIT) ................. 6,417,000 153
Petroleo Brasileiro SA - Petrobras (OILS) ........ 17,710 535
Tele Centro Sul Participacoes SA (UTIT) .......... 6,634,000 96
Tele Norte Leste Participacoes SA (UTIT) ......... 7,080,518 166
Telesp Celular Participacoes SA * (TELS) ......... 6,756,387 122
Telesp Participacoes SA * (UTIT) ................. 3,000,000 56
---------
1,888
Germany - 0.4%
Dyckerhoff AG (CONS) ............................. 2,600 66
RWE AG (OILX) .................................... 1,170 32
SAP AG - Vorzug (SOFT) ........................... 4,470 826
Volkswagen AG (AUTO) ............................. 3,800 89
---------
1,013
---------
TOTAL PREFERRED STOCK- 1.4% 3,321
Par
Value
(000's)
PUBLICLY-TRADED BONDS
United Kingdom - 0.0%
British Aerospace plc - Bonds (AERO)
7.45% due 11/29/03 ............................... $ 4 6
---------
WARRANTS
Mexico - 0.0%
Cemex SA de CV (CONS)
88
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
WARRANTS - CONTINUED
Mexico - Continued
expires 12/02/02 (Cost $1) ........... 2,000 $ 1
United States - 1.2%
Morgan Stanley Capital Llc (FINL)
expires 04/07/07 (Cost $2,709) ....... 19,000 2,661
-----------
TOTAL WARRANTS- 1.2% 2,662
RIGHTS
Norway - 0.0%
KVAERNER A (DIOP)
expires 06/23/00 (Cost $0) ........... 1,611 1
Kvaerner plc (DIOP)
expires 06/23/00 (Cost $0) ........... 975
-----------
1
Philippines - 0.0%
Metrobank (BANK)
expires 07/28/00 (Cost $0) ........... 1,309 1
Portugal - 0.0%
Sonae SGPS, SA (RETS)
expires 07/19/00 (Cost $0) ........... 10,000 10
Spain - 0.0%
Autopistas Del Sol SA (TRAN)
expires 07/05/00 (Cost $0) ........... 13,503 6
Thailand - 0.0%
TELECOMASIA (UTIT)
expires 01/01/80 (Cost $0) ........... 35,747
-----------
TOTAL RIGHTS- 0.0% 18
SHORT-TERM INVESTMENTS - 2.4%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 ................. 5,083 5,083
U.S. Treasury
5.58% due 09/14/00 .................. 365 361
-----------
5,444
----------- -----------
TOTAL INVESTMENTS- 99.7% 229,753
Cash and Receivables, less payables- 0.3% 660
----------- -----------
NET ASSETS- 100.0% 230,413
=========== ===========
* Non-income producing security.
ADR-American Depository Receipt
GDR-Global Depository Receipt
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Banks .......................................... BANK $29,540 13.2%
Electronic Products and Services ............... ETRN 19,278 8.6%
Telecommunication Services ..................... TELS 18,504 8.3%
Telephone ...................................... UTIT 15,360 6.8%
Insurance ...................................... INSU 13,073 5.8%
Diversified Operations ......................... DIOP 12,929 5.8%
Health Care Products ........................... HEAL 11,199 5.0%
Automobile ..................................... AUTO 9,196 4.1%
Chemicals ...................................... CHEM 6,677 3.0%
Electric Power ................................. UTIE 6,546 3.0%
Food, Beverage and Tobacco ..................... FOOD 6,207 2.7%
Oil and Natural Gas Exploration and Production.. OILX 5,079 2.3%
Transportation Services ........................ TRAN 5,015 2.2%
Financial Services ............................. FINL 4,595 2.1%
Retail - Department Stores ..................... RETD 4,533 2.0%
Construction ................................... CONS 4,522 2.0%
Media - TV / Radio ............................. MEDI 4,029 1.8%
Commercial Services ............................ COMM 3,977 1.8%
Oil - Equipment and Services ................... OILE 3,232 1.4%
Brokerage and Investment Management ............ FUND 3,223 1.4%
Leisure and Recreation ......................... LEIS 3,144 1.4%
Electrical Equipment ........................... ELEQ 2,864 1.3%
Oil ............................................ OILS 2,765 1.2%
Computer Software and Services ................. SOFT 2,542 1.2%
Machinery ...................................... MACH 2,414 1.1%
Retail - Food .................................. RETF 2,381 1.1%
Telecommunication Equipment .................... TELE 2,055 0.9%
Cosmetics and Personal Care Products ........... HNBA 1,902 0.8%
Computer Equipment ............................. COMP 1,826 0.8%
Personal and Commercial Lending ................ LEND 1,322 0.6%
Paper and Forest Products ...................... PAPR 1,275 0.6%
Shoe and Apparel Manufacturing ................. APPA 1,270 0.6%
Real Estate Operations ......................... REAL 1,241 0.6%
Natural Gas Distribution ....................... UTIG 1,176 0.5%
Auto and Truck Parts ........................... PART 1,163 0.5%
Metals and Mining .............................. META 1,050 0.5%
Steel .......................................... STEE 916 0.4%
Engineering and Construction ................... ENGI 903 0.4%
Consumer - Miscellaneous ....................... CNSU 862 0.4%
Media - Publishing ............................. MEDP 827 0.4%
Household Appliances / Furnishings ............. APPL 739 0.3%
Real Estate Development ........................ READ 736 0.3%
Precious Metals/Gems/Stones .................... PMET 577 0.3%
Containers ..................................... CONT 307 0.1%
Business Services .............................. BUSI 271 0.1%
89
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Aerospace and Defense ........................ AERO 207 0.1%
Real Estate Investment Trust ................. REIT 180 0.1%
Metal Product and Fabrication ................ METP 170 0.1%
Housing ...................................... HOUS 124 0.1%
Pollution Control ............................ POLL 110 0.0%
Agricultural Operations ...................... AGRI 103 0.0%
Energy - Alternative Stores .................. ENER 92 0.0%
Retail - Drug Stores ......................... RETD 81 0.0%
-------- -------
$224,309 100.0%
======== =======
90
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES II PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.5%
Brambles Industries, Ltd. (DIOP) ........... 2,553 $ 78
Broken Hill Proprietary Co., Ltd. (DIOP) ... 24,200 286
Commonwealth Bank of Australia (BANK) ...... 4,462 74
Lend Lease Corp. (FINL) .................... 2,627 33
Publishing & Broadcasting, Ltd. (MEDP) ..... 9,083 70
TABCORP Holdings, Ltd. (LEIS) .............. 5,585 32
Telstra Corp., Ltd. (TELS) ................. 16,907 69
------
642
Belgium - 0.6%
Dexia (BANK) ............................... 420 62
Fortis (B) (INSU) .......................... 2,980 86
UCB SA (HEAL) .............................. 240 9
------
157
Brazil - 1.1%
Aracruz Celulose SA - ADR (PAPR) ........... 5,200 101
Companhia Vale do Rio Doce - ADR (META) .... 6,300 177
------
278
Canada - 3.2%
Alberta Energy, Ltd. (OILX) ................ 1,200 49
BCE, Inc. (TELS) ........................... 2,110 50
Canadian National Railway Co. (TRAN) ....... 7,000 204
MANULIFE Financial Corp. (INSU) ............ 8,600 152
NORTEL NETWORKS Corp. (TELE) ............... 3,313 230
Teleglobe, Inc. (TELS) ..................... 7,200 152
------
837
Finland - 0.9%
Nokia Oyj (HEAL) ........................... 4,800 245
France - 10.2%
Alcatel (TELE) ............................. 4,710 309
Altran Technologies, Inc. SA (AERO) ........ 190 37
Aventis SA * (HEAL) ........................ 5,544 398
AXA SA (INSU) .............................. 1,720 271
Banque Nationale de Paris (BANK) ........... 2,360 227
Canal Plus (MEDI) .......................... 1,533 258
Cap Gemini SA (COMM) ....................... 410 72
Carrefour SA (RETF) ........................ 310 21
Groupe Danone (FOOD) ....................... 130 17
Hermes International (RETS) ................ 290 39
L'Oreal (HNBA) ............................. 30 26
Lafarge SA (CONS) .......................... 120 9
Legrand SA (ELEQ) .......................... 440 99
Moet Hennessy-Louis Vuitton (FOOD) ......... 150 62
Rhone-Poulenc SA (BANK) .................... 3,060 223
Sanofi-Synthelabo SA * (HEAL) .............. 3,650 174
Schneider SA (MACH) ........................ 440 31
Societe Generale - Cl. A (BANK) ............ 650 39
Sodexho Alliance SA (LEIS) ................. 160 29
STMICROELECTRONICS (ETRN) .................. 3,225 203
Vivendi (DIOP) ............................. 1,342 119
------
2,663
Germany - 6.6%
Allianz AG - Reg. (INSU) ................... 655 235
Bayer AG (CHEM) ............................ 6,786 265
Bayerische Vereinsbank AG (BANK) ........... 2,604 168
Deutsche Bank AG (BANK) .................... 2,010 165
Deutsche Telekom AG (UTIT) ................. 2,571 147
E.On AG (DIOP) ............................. 1,690 81
Infineon Technologies AG (ETRN) ............ 1,710 135
SAP AG (SOFT) .............................. 1,410 211
Siemens AG (DIOP) .......................... 2,101 317
------
1,724
Hong Kong - 0.3%
Henderson Land Development Co., Ltd.
(READ) ................................... 12,000 53
Sun Hung Kai Properties, Ltd. (REIT) ....... 3,000 21
------
74
Italy - 4.8%
Alleanza Assicurazioni (INSU) .............. 7,000 93
Banca Intesa SpA (BANK) .................... 50,000 224
Bipop-Carire SpA (BANK) .................... 15,000 118
Mediolanum SpA (INSU) ...................... 6,000 97
San Paolo-IMI SpA (BANK) ................... 1,000 18
Tecnost SpA (COMP) ......................... 10,000 38
Telecom Italia Mobile SpA (TELS) ........... 32,000 327
Telecom Italia SpA (TELS) .................. 16,000 220
UniCredito Italiano SpA (BANK) ............. 26,000 124
------
1,259
Japan - 21.5%
Bridgestone Corp. (AUTO) ................... 2,000 42
Canon, Inc. (COMM) ......................... 8,000 398
DDI Corp. (UTIT) ........................... 15 144
East Japan Railway Co. (TRAN) .............. 32 186
Fanuc, Ltd. (ELEQ) ......................... 1,000 102
Fuji Bank, Ltd. (BANK) ..................... 21,000 160
Fuji Television Network, Inc. (MEDI) ....... 9 141
Fujitsu, Ltd. (ELEQ) ....................... 5,000 173
Hitachi, Ltd. (ETRN) ....................... 3,000 43
Ito-Yokado Co., Ltd. (RETS) ................ 1,000 60
KAO Corp. (HNBA) ........................... 2,000 61
Komori Corp. (MACH) ........................ 1,000 18
Kyocera Corp. (ETRN) ....................... 2,000 339
Makita Corp. (CNSU) ........................ 2,000 19
Marui Co., Ltd. (RETS) ..................... 4,000 77
Matsushita Electric Industrial Co. (ETRN) .. 11,000 285
Mitsui Fudosan Co., Ltd. (REAL) ............ 24,000 260
Murata Manufacturing Co., Ltd. (ETRN) ...... 2,000 287
NEC Corp. (COMP) ........................... 11,000 345
Nikko Securities Co., Ltd. (FUND) .......... 6,000 59
91
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES II PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Nippon Telegraph & Telephone Corp. (UTIT) .. 28 $ 372
Nomura Securities Co., Ltd. (FUND) ......... 9,000 220
NTT Mobile Communications Network, Inc.
(TELS) .................................... 5 135
Sankyo Co., Ltd. (HEAL) .................... 3,000 68
Seven-Eleven Japan (RETF) .................. 2,000 167
Shin-Etsu Chemical Co. (CHEM) .............. 2,000 101
Shiseido Co., Ltd. (CHEM) .................. 4,000 62
Sony Corp. (ETRN) .......................... 3,200 299
Sumitomo Bank (BANK) ....................... 13,000 159
Sumitomo Corp. (TELE) ...................... 6,000 68
Sumitomo Electric Industries (DIOP) ........ 2,000 34
Toshiba Corp. (ETRN) ....................... 26,000 293
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL) .................................... 8,000 437
------
5,614
Mexico - 0.9%
Grupo Televisa SA - GDR * (MEDI) ........... 3,500 241
Netherlands - 5.9%
ABN Amro Holding NV (BANK) ................. 1,020 25
Akzo Nobel NV (CHEM) ....................... 280 12
ASM Lithography Holding NV (COMP) .......... 4,390 189
Equant * (COMP) ............................ 820 33
Fortis (NL) NV (INSU) ...................... 4,210 122
ING Groep NV (BANK) ........................ 4,410 298
Koninklije KPN NV (TELS) ................... 1,500 67
Koninklijke Philips Electronics NV (ETRN) .. 6,640 313
Royal Dutch Petroleum Co. (OILS) ........... 2,650 165
United Pan Europe (TELS) ................... 1,950 51
VNU NV (MEDP) .............................. 5,050 261
------
1,536
Portugal - 0.1%
Jeronimo Martins, SGPS, SA (FOOD) .......... 1,440 24
South Africa - 1.2%
Anglo American Platinum Corp., Ltd.
(PMET) .................................... 7,100 205
Impala Platinum Holdings, Ltd. - ADR
(META) .................................... 2,900 108
------
313
South Korea - 0.7%
Samsung Electronics (ETRN) ................. 560 185
Spain - 1.8%
Banco Bilbao Vizcaya SA (BANK) ............. 11,350 170
Endesa SA (UTIE) ........................... 6,350 123
Telefonica SA (UTIT) ....................... 8,359 179
------
472
Sweden - 1.2%
Telefonaktiebolaget LM Ericsson AB *
(TELS) .................................... 16,160 320
Switzerland - 3.7%
Credit Suisse Group - Reg. (BANK) .......... 530 105
Givaudan * (TELS) .......................... 16 5
Nestle SA (FOOD) ........................... 176 352
Roche Holding AG (HEAL) .................... 16 156
Swisscom AG - Reg. (UTIT) .................. 478 166
UBS AG (BANK) .............................. 1,180 173
------
957
United Kingdom - 26.4%
Abbey National First Capital BV (BANK) ..... 3,000 36
AstraZeneca Group plc (HEAL) ............... 4,000 187
Baltimore Technologies plc * (COMP) ........ 8,000 61
BG Group plc (UTIG) ........................ 2,000 13
BOC Group plc (CHEM) ....................... 18,668 268
BP Amoco plc (OILS) ........................ 12,000 115
British Telecommunications plc (TELS) ...... 14,117 182
Cable & Wireless plc (TELS) ................ 18,995 322
Cadbury Schweppes plc (FOOD) ............... 11,000 72
Carlton Communications plc (MEDI) .......... 21,280 274
Celltech Group plc * (HEAL) ................ 3,000 58
Centrica plc * (UTIG) ...................... 5,000 17
Compass Group plc (FOOD) ................... 18,000 237
Diageo plc (FOOD) .......................... 13,000 117
GKN plc (AUTO) ............................. 1,000 13
Glaxo Wellcome plc (HEAL) .................. 16,000 466
Hays plc (DIOP) ............................ 2,000 11
Hilton Group plc (LEIS) .................... 4,000 14
HSBC Holdings plc (BANK) ................... 6,000 69
Kingfisher plc (RETS) ...................... 11,000 100
Marconi plc (TELE) ......................... 7,000 91
National Grid Group plc (UTIE) ............. 31,622 249
National Power plc (UTIE) .................. 46,041 293
Prudential Corp. (INSU) .................... 16,432 241
Railtrack Group plc (TRAN) ................. 10,584 164
Reuters Group plc (BUSI) ................... 19,033 325
Rio Tinto plc - Reg. (DIOP) ................ 12,381 202
Royal & Sun Alliance Insurance Group plc
(INSU) .................................... 56,307 365
Scottish Power plc (UTIE) .................. 35,365 300
Shell Transport & Trading Co. plc (OILX) ... 43,934 367
SmithKline Beecham plc (HEAL) .............. 19,784 259
Standard Chartered (BANK) .................. 7,000 87
Tesco plc (RETF) ........................... 14,000 43
The Great Universal Stores plc (RETS) ...... 40,897 263
Unilever plc (CNSU) ........................ 10,000 61
United News & Media plc (MEDP) ............. 4,000 57
Vodafone AirTouch plc (TELS) ............... 164,790 666
92
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES II PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
United Kingdom - Continued
WPP Group plc * (COMM) ...................... 16,000 $ 234
-------
6,899
-------
TOTAL COMMON STOCK- 93.6% 24,440
PREFERRED STOCK - 0.1%
Germany - 0.1%
SAP AG - Vorzug (SOFT) ...................... 90 16
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 7.1%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ........................ 1,862 $ 1,862
------- -------
TOTAL INVESTMENTS- 100.8% 26,318
Payables, less cash and receivables- (0.8)% (216)
------- -------
NET ASSETS- 100.0% 26,102
======= =======
* Non-income producing security.
ADR-American Depository Receipt
GDR-Global Depository Receipt
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Banks .......................................... BANK 2,762 11.3%
Telecommunication Services ..................... TELS 2,565 10.5%
Health Care Products ........................... HEAL 2,455 10.0%
Electronic Products and Services ............... ETRN 2,383 9.8%
Insurance ...................................... INSU 1,664 6.8%
Diversified Operations ......................... DIOP 1,129 4.6%
Telephone ...................................... UTIT 1,008 4.1%
Electric Power ................................. UTIE 965 4.0%
Media - TV / Radio ............................. MEDI 913 3.7%
Food, Beverage and Tobacco ..................... FOOD 881 3.6%
Chemicals ...................................... CHEM 708 2.9%
Commercial Services ............................ COMM 704 2.9%
Telecommunication Equipment .................... TELE 697 2.9%
Computer Equipment ............................. COMP 665 2.7%
Transportation Services ........................ TRAN 555 2.3%
Retail - Department Stores ..................... RETS 539 2.2%
Oil and Natural Gas Exploration and Production.. OILX 415 1.7%
Media - Publishing ............................. MEDP 388 1.6%
Electrical Equipment ........................... ELEQ 373 1.5%
Business Services .............................. TRAN 325 1.3%
Metals and Mining .............................. META 285 1.2%
Brokerage and Investment Management ............ FUND 280 1.1%
Oil ............................................ OILS 280 1.1%
Real Estate Operations ......................... REAL 260 1.1%
Retail - Food .................................. RETF 232 1.0%
Computer Software and Services ................. SOFT 228 1.0%
Precious Metals/Gems/Stones .................... PMET 205 0.8%
Paper and Forest Products ...................... PAPR 100 0.4%
Cosmetics and Personal Care Products ........... HNBA 87 0.4%
Consumer Miscellaneous ......................... CNSU 80 0.3%
Leisure and Recreation ......................... LEIS 75 0.3%
Automoblie ..................................... AUTO 55 0.2%
Real Estate Development ........................ READ 53 0.2%
Machinery ...................................... MACH 48 0.2%
Financial Services ............................. FINL 33 0.1%
Natural Gas Distribution ....................... UTIG 20 0.1%
Real Estate Investment Trust ................... REIT 22 0.1%
Construction ................................... CONS 9 0.0%
-------- -------
$24,456 100.0%
======== =======
93
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 2.5%
Broken Hill Proprietary Co., Ltd.
(DIOP) ............................ 3,793 $ 45
Hanson plc * (CONS) ................ 122 1
National Australia Bank, Ltd. (BANK) 4,131 69
News Corp., Ltd. (MEDI) ............ 6,023 83
TABCORP Holdings, Ltd. (LEIS) ...... 4,684 27
Telstra Corp., Ltd. (TELS) ......... 23,814 96
Woolworth's, Ltd. (RETS) ........... 7,824 29
-----
350
Finland - 3.2%
Nokia Oyj (HEAL) ................... 8,086 412
Sonera Oyj (TELS) .................. 1,004 46
-----
458
France - 11.3%
Accor SA (LEIS) .................... 1,056 43
Air Liquide (CHEM) ................. 680 89
Alcatel (TELE) ..................... 2,182 143
AXA SA (INSU) ...................... 948 149
Banque Nationale de Paris (BANK) ... 956 92
Cap Gemini SA (COMM) ............... 217 38
Carrefour SA (RETF) ................ 1,083 74
France Telecom (TELS) .............. 1,054 147
Lafarge SA (CONS) .................. 659 51
Moet Hennessy-Louis Vuitton
(FOOD) ............................ 108 45
Renault (AUTO) ..................... 1,042 47
Rhodia SA (CHEM) ................... 952 16
Rhone-Poulenc SA (BANK) ............ 2,159 158
STMICROELECTRONICS (ETRN) .......... 2,004 126
Total Fina SA - Cl. B (OILX) ....... 1,394 214
Valeo SA (PART) .................... 957 51
Vivendi (DIOP) ..................... 1,344 119
-----
1,602
Germany - 6.1%
Allianz AG - Reg. (INSU) ........... 307 110
Bayerische Vereinsbank AG (BANK) ... 564 37
DaimlerChrysler AG (AUTO) .......... 582 30
Deutsche Bank AG (BANK) ............ 1,874 154
Deutsche Telekom AG (UTIT) ......... 2,990 171
E.On AG (DIOP) ..................... 1,291 62
Lufthansa AG (TRAN) ................ 2,753 64
Muenchener
Rueckversicherungs-Gesellschaft
AG - Reg. (INSU) .................. 205 64
Preussag AG (DIOP) ................. 684 22
Siemens AG (DIOP) .................. 1,031 156
-----
870
Hong Kong - 2.0%
Cable & Wireless HKT, Ltd. (TELS) .. 16,400 36
China Telecom (Hong Kong), Ltd.
(TELS) ............................ 5,000 44
Giordano International, Ltd.
(RETS) ............................ 20,000 31
Hang Seng Bank, Ltd. (BANK) ........ 6,000 57
Hutchison Whampoa, Ltd. (COMM) ..... 8,700 109
-----
277
Ireland - 0.6%
Bank of Ireland (BANK) ............. 14,037 88
Italy - 3.5%
Banca Nazionale del Lavoro (BANK) .. 11,684 41
San Paolo-IMI SpA (BANK) ........... 8,800 156
Telecom Italia Mobile SpA (TELS) ... 17,500 179
Telecom Italia SpA (TELS) .......... 8,983 124
-----
500
Japan - 27.1%
ADERANS Co., Ltd. (HNBA) ........... 1,800 83
Advantest (ETRN) ................... 600 134
Asahi Chemical Industry Co., Ltd.
(CHEM) ............................ 7,000 49
Asahi Glass Co., Ltd. (APPL) ....... 11,000 123
Bridgestone Corp. (PART) ........... 4,000 85
Canon, Inc. (COMM) ................. 4,000 199
Chiba Bank, Ltd. (BANK) ............ 16,000 63
Circle K Japan Co., Ltd. (RETF) .... 1,700 62
Daiwa Securities Group, Inc.
(FUND) ............................ 5,000 66
Fanuc, Ltd. (ELEQ) ................. 1,500 153
Fuji Bank, Ltd. (BANK) ............. 12,000 91
Fuji Photo Film (LEIS) ............. 3,000 123
Fujitsu, Ltd. (ELEQ) ............... 2,000 69
Honda Motor Co. (AUTO) ............. 1,000 34
KAO Corp. (HNBA) ................... 4,000 122
Kirin Brewery Co. (FOOD) ........... 7,000 87
Mitsui Marine & Fire Insurance Co.,
Ltd. (INSU) ....................... 20,000 96
NEC Corp. (COMP) ................... 4,000 126
NGK Insulators (PART) .............. 4,000 50
Nintendo Corp., Ltd. (LEIS) ........ 200 35
Nippon Telegraph & Telephone Corp.
(UTIT) ............................ 19 252
Nomura Securities Co., Ltd. (FUND) . 3,000 73
NTT Mobile Communications Network,
Inc. (TELS) ....................... 2 54
Ricoh Co., Ltd. (ETRN) ............. 6,000 127
Rohm Co., Ltd. (ETRN) ............. 400 117
Sharp Corp. (ETRN) ................. 7,000 124
Shin-Etsu Chemical Co. (CHEM) ...... 2,000 101
Skylark Co., Ltd. (FOOD) ........... 3,000 118
SMC Corp. (MACH) ................... 100 19
Softbank Corp. (BANK) .............. 200 27
Sony Corp. (ETRN) .................. 1,000 93
Sumitomo Bank (BANK) ............... 2,000 24
Sumitomo Corp. (DIOP) .............. 10,000 112
Takeda Chemical Industries (CHEM) .. 1,000 66
Takefuji Corp. (LEND) .............. 800 97
Terumo Corp. (HEAL) ................ 1,000 34
Tokyo Electric Power (UTIE) ........ 4,500 110
Toppan Forms Co., Ltd. (COMM) ...... 3,600 85
94
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Name of Issuer Shares Market
Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Toyota Motor Corp. (AUTO) .......... 4,000 $ 182
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL) ............................ 3,000 164
-------
3,829
Netherlands - 8.2%
Akzo Nobel NV (CHEM) ............... 1,837 78
ASM Lithography Holding NV
(COMP) ............................ 1,931 83
Fortis (NL) NV (INSU) .............. 2,117 62
Getronics NV (SOFT) ................ 4,087 63
ING Groep NV (BANK) ................ 3,157 213
Koninklije KPN NV (TELS) ........... 3,396 152
Koninklijke Philips Electronics NV
(ETRN) ............................ 3,014 142
Royal Dutch Petroleum Co. (OILE) ... 3,762 234
United Pan Europe (TELS) ........... 1,922 50
VNU NV (MEDP) ...................... 1,555 80
-------
1,157
Singapore - 1.3%
Chartered Semiconductor Manufacturing
* (ETRN) .......................... 11,000 96
DBS Group Holdings, Ltd. (BANK) .... 4,000 52
Singapore Press Holdings, Ltd.
(MEDP) ............................ 2,000 31
-------
179
Spain - 2.8%
Acerinox SA (STEE) ................. 1,772 51
Endesa SA (UTIE) ................... 3,353 65
Repsol SA (OILX) ................... 1,796 36
Telefonica SA (UTIT) ............... 11,590 249
-------
401
Sweden - 5.1%
Investor AB - B Shares (FUND) ...... 6,397 88
Nordbanken Holding (BANK) .......... 15,818 119
Securitas AB - B Shares (COMM) ..... 4,393 93
Skandia Forsakrings AB (INSU) ...... 4,563 121
Telefonaktiebolaget LM Ericsson AB *
(TELS) ............................ 15,233 301
-------
722
Switzerland - 6.4%
ABB, Ltd. * (ENGI) ................. 838 100
Adecco SA - Reg. (COMM) ............ 84 71
Credit Suisse Group - Reg. (BANK) .. 399 80
Nestle SA (FOOD) ................... 86 172
Novartis AG - Reg. (HEAL) .......... 77 122
Roche Holding AG (HEAL) ............ 14 136
Schweizerische
Rueckversicherungs-Gesellschaft
(INSU) ............................ 47 96
UBS AG (BANK) ...................... 829 122
-------
899
United Kingdom - 18.1%
Allied Zurich plc * (INSU) ......... 10,466 124
Amvescap plc (BANK) ................ 4,503 72
AstraZeneca Group plc (HEAL) ....... 1,861 87
BP Amoco plc (OILE) ................ 23,537 226
British Aerospace plc (AERO) ....... 7,103 44
British American Tobacco plc * (FOOD) 5,961 40
British Telecommunications plc (TELS) 10,742 139
Cable & Wireless plc (TELS) ........ 1,708 29
CGU plc (INSU) ..................... 3,251 54
Diageo plc (FOOD) .................. 12,710 114
Glaxo Wellcome plc (HEAL) .......... 7,621 222
HSBC Hol dings plc (BANK) .......... 10,504 120
Lloyds TSB Group plc (BANK) ........ 6,345 60
Marconi plc (TELE) ................. 3,100 40
Reuters Group plc (BUSI) ........... 7,451 127
Royal Bank of Scotland Group (BANK) 5,767 97
Scottish Power plc (UTIE) .......... 8,099 69
SmithKline Beecham plc (HEAL) ...... 14,376 188
Unilever plc (CNSU) ................ 23,349 141
Vodafone AirTouch plc (TELS) ....... 125,019 505
WPP Group plc * (COMM) ............. 3,829 56
-------
2,554
United States - 0.0%
NTL, Inc. * (TELS) ................. 1 -------
TOTAL COMMON STOCK- 98.2% 13,886
PREFERRED STOCK - 0.5%
Germany - 0.5%
SAP AG - Vorzug ) .................. 72
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 8.5%
Investment in joint repurchase
agreement with Goldman Sachs & Co.
dated 06/03/ 00, 6.866% due 07/03/00
(Secured by various U.S. Treasury
Obligations and U.S. Government
Agency Bonds)
------------------------------------ $ 1,200 1,200
---------- --------
TOTAL INVESTMENTS- 107.2% 15,156
Payables, less cash and receivables- (7.2)% (1,016)
---------- --------
NET ASSETS- 100.0% 14,140
========== ========
95
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
<TABLE>
<CAPTION>
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
<S> <C> <C> <C>
Banks ........................................ BANK $1,991 14.3%
Telecommunication Services ................... TELS 1,903 13.6%
Health Care Products ......................... HEAL 1,366 9.8%
Electronic Products and Services ............. ETRN 959 6.9%
Insurance .................................... INSU 876 6.3%
Telephone .................................... UTIT 672 4.8%
Commercial Services .......................... COMM 652 4.7%
Food, Beverage and Tobacco ................... FOOD 576 4.1%
Diversified Operations ....................... DIOP 516 3.7%
Oil - Equipment and Services ................. OILE 460 3.3%
Chemicals .................................... CHEM 399 2.9%
Automobile ................................... AUTO 294 2.1%
Oil and Natural Gas Exploration and Production OILX 249 1.8%
Electric Power ............................... UTIE 243 1.7%
Leisure and Recreation ....................... LEIS 228 1.6%
Brokerage and Investment Management .......... FUND 227 1.6%
Electrical Equipment ......................... ELEQ 222 1.6%
Computer Equipment ........................... COMP 209 1.5%
Cosmetics and Personal Care Products ......... HNBA 205 1.5%
Auto and Truck Parts ......................... PART 185 1.3%
Telecommunication Equipment .................. TELE 183 1.3%
Consumer - Miscellaneous ..................... CNSU 141 1.0%
Retail - Food ................................ RETF 136 1.0%
Computer Software and Services ............... SOFT 135 0.9%
Business Services ............................ BUSI 127 0.9%
Household Appliances / Furnishings ........... APPL 123 0.9%
Media - Publishing ........................... MEDP 112 0.8%
Engineering and Construction ................. ENGI 100 0.7%
Personal and Commercial Lending .............. LEND 97 0.7%
Media - TV / Radio ........................... MEDI 83 0.6%
Transportation Services ...................... TRAN 64 0.5%
Retail - Department Stores ................... RETS 59 0.4%
Construction ................................. CONS 52 0.4%
Steel ........................................ STEE 51 0.4%
Aerospace and Defense ........................ AERO 44 0.3%
Machinery .................................... MACH 19 0.1%
-------- --------
$13,958 100.0%
======== ========
</TABLE>
96
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Brokerage and Investment Management - 0.7%
Affiliated Managers Group, Inc. *...................... 41,900 $ 1,906
Business Services - 4.4%
Corporate Executive Board Co. *........................ 40,800 2,443
Forrester Research, Inc. * ............................ 46,700 3,400
Management Network Group, Inc. * ...................... 59,100 2,068
On Assignment, Inc. * ................................. 91,900 2,803
ProBusiness Services, Inc. * .......................... 82,700 2,197
--------
12,911
Commercial Services - 3.6%
Jupiter Communications, Inc. .......................... 43,700 1,005
META Group, Inc. * .................................... 86,700 1,669
Modem Media Poppe Tyson, Inc. * ....................... 24,000 298
Plexus Corp. * ........................................ 18,500 2,090
ProsoftTraining.com, Inc. * ........................... 90,500 1,522
Quanta Services, Inc. * ............................... 47,049 2,588
Veritas DGC, Inc. * ................................... 54,500 1,417
--------
10,589
Computer Equipment - 3.9%
eMachines, Inc. ....................................... 142,800 384
Maxtor Corp. * ........................................ 43,700 461
National Computer Systems, Inc. * ..................... 57,100 2,812
Predictive Systems, Inc. * ............................ 31,450 1,130
PRI Automation, Inc. * ................................ 24,700 1,615
Quantum Corp. - Hard Disk Drive * ..................... 115,500 1,278
Tech Data Corp. * ..................................... 83,300 3,629
--------
11,309
Computer Software and Services - 12.5%
Accrue Software, Inc. * ............................... 49,400 1,754
Advent Software, Inc. * ............................... 41,300 2,664
Aspen Technologies, Inc. * ............................ 45,700 1,759
BindView Development Corp. ............................ 95,800 1,150
Broadbase Software, Inc. * ............................ 43,400 1,329
Cognizant Technology Solutions Corp. .................. 46,500 1,543
Data Return Corp. * ................................... 85,000 2,465
Etinuum, Inc. * ....................................... 37,000 208
Interwoven, Inc. * .................................... 28,700 3,157
Intranet Solutions, Inc. * ............................ 48,100 1,846
Lifeminders, Inc. * ................................... 6,350 188
Manugistics Group, Inc. * ............................. 29,000 1,356
Media Metrix, Inc. * .................................. 71,800 1,826
Mediaplex, Inc. * ..................................... 38,400 742
Multex.com, Inc. * .................................... 54,000 1,360
National Instruments Corp. * .......................... 29,150 1,272
Net Perceptions, Inc. * ............................... 34,400 546
Netpliance, Inc. * .................................... 118,650 1,083
SCM Microsystems, Inc. * .............................. 23,000 1,393
Secure Computing Corp. * .............................. 134,300 2,526
SportsLine.com, Inc. * ................................ 62,300 1,063
Transaction Systems Architects, Inc. - Cl. A * ........ 64,500 1,105
Viant Corp. * ......................................... 46,600 1,380
Virage, Inc. * ........................................ 3,950 71
WebTrends Corp. * ..................................... 37,700 1,458
Wind River Systems * .................................. 27,250 1,032
--------
36,276
Consumer - Miscellaneous - 1.1%
NetRatings, Inc. * .................................... 46,600 1,194
ScanSource, Inc. * .................................... 52,900 2,057
--------
3,251
Diversified Operations - 1.0%
Varian, Inc. * ........................................ 61,300 2,827
Electrical Equipment - 0.2%
Nu Horizons Electronics Corp. * ....................... 26,300 700
Electronic Products and Services - 15.3%
Alpha Industries, Inc. ................................ 30,000 1,322
Atmi, Inc. * .......................................... 49,800 2,316
Brooks Automation, Inc. * ............................. 8,000 1,790
Credence Systems Corp. * .............................. 30,000 1,656
Cytyc Corp. * ......................................... 37,700 2,012
DDi, Corp. ............................................ 59,000 1,682
DuPont Photomasks, Inc. * ............................. 37,500 2,569
Elantec Semiconductor, Inc. * ......................... 47,900 3,335
Exar, Corp. * ......................................... 41,950 3,658
Integrated Silicon Solution, Inc. * ................... 81,300 3,089
Kent Electronics Corp. * .............................. 57,000 1,699
Manufacturers Services, Ltd. * ........................ 7,800 160
Marvell Technology Group, Ltd. * ...................... 1,200 68
Mattson Technology, Inc. * ............................ 21,100 686
Merix Corp. * ......................................... 23,600 1,109
Metalink, Ltd. * ...................................... 49,100 1,455
Microsemi Corp. ....................................... 63,200 2,145
Nanometrics, Inc. * ................................... 51,300 2,113
Pixelworks, Inc. * .................................... 10,550 240
PLX Technology, Inc. * ................................ 85,400 3,544
Rudolph Technologies, Inc. * .......................... 48,500 1,879
Semtech Corp. * ....................................... 34,200 2,616
Virata, Corp. * ....................................... 57,800 3,446
--------
44,589
Energy - Alternative Source - 0.1%
Capstone Turbine Corp. * .............................. 7,250 327
Financial Services - 0.4%
Actrade International, Ltd. * ......................... 26,100 535
Medallion Financial Corp. ............................. 40,000 618
--------
1,153
Health Care Products - 14.2%
Alexion Pharmaceuticals, Inc. * ....................... 40,600 2,903
Alkermes, Inc. * ...................................... 66,600 3,139
Alpharma, Inc. - Cl. A ................................ 40,200 2,502
COR Therapeutics, Inc. * .............................. 39,500 3,370
97
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
CV Therapeutics, Inc. * ................................ 60,200 $ 4,173
Cyberonics, Inc. * ..................................... 36,200 434
Exelixis, Inc. * ....................................... 24,200 808
Inhale Therapeutic Systems, Inc. * ..................... 25,900 2,628
Interpore International, Inc. * ........................ 182,550 1,768
Invitrogen Corp. * ..................................... 33,900 2,549
Ligand Pharmaceuticals - Cl. B * ....................... 94,200 1,242
NPS Pharmaceuticals, Inc. * ............................ 123,300 3,298
OXiGENE, Inc. * ........................................ 50,900 509
Pharmacopeia, Inc. * ................................... 62,400 2,894
Pharmacyclics, Inc. * .................................. 24,500 1,495
Priority Healthcare Corp. - Cl. B * .................... 20,200 1,501
Techne Corp. * ......................................... 21,900 2,847
Titan Pharmeceuticals, Inc. * .......................... 55,200 2,374
Virologic, Inc. * ...................................... 52,200 776
--------
41,210
Health Care Services - 4.6%
AmeriSource Health Corp. - Cl. A * ..................... 18,600 576
Aurora Biosciences Corp. * ............................. 45,400 3,096
Bindley Western Industries, Inc. ....................... 32,800 867
Genome Therapeutics Corp. * ............................ 59,100 1,799
LifePoint Hospitals, Inc. * ............................ 115,000 2,559
Province Healthcare Co. * .............................. 75,500 2,727
Visible Genetics, Inc. * ............................... 39,000 1,760
--------
13,384
Leisure and Recreation - 0.5%
Cinar Films, Inc. - Cl. B * ............................ 55,800 391
Premier Parks, Inc. * .................................. 51,600 1,174
--------
1,565
Machinery - 0.8%
GaSonics International Corp. * ......................... 61,200 2,414
Media - Publishing - 1.1%
Houghton Mifflin Co. ................................... 38,300 1,788
Radio One, Inc. - Cl. D * .............................. 65,800 1,452
--------
3,240
Media - TV / Radio - 4.1%
Acme Communications, Inc. * ............................ 79,250 1,446
Citadel Communications Corp. * ......................... 25,400 887
Getty Images, Inc. ..................................... 56,300 2,087
Pegasus Communications Corp. * ......................... 16,500 810
Radio One, Inc. * ...................................... 33,500 990
Regent Communications, Inc. * .......................... 183,200 1,574
Sinclair Broadcast Group, Inc. ......................... 81,200 893
Westwood One, Inc. * ................................... 39,100 1,334
XM Satellite Radio Holdings, Inc. - Cl. A * ............ 43,900 1,644
YouthStream Media Networks, Inc. * ..................... 65,200 367
--------
12,032
Metals and Mining - 0.9%
Maverick Tube Corp. * .................................. 92,000 2,680
Oil - Equipment and Services - 3.4%
Core Laboratories NV * ................................. 81,300 2,358
Dril Quip, Inc. * ...................................... 39,700 1,856
Marine Drilling Companies, Inc. * ...................... 92,900 2,601
Natco Group, Inc. - Cl. A .............................. 130,800 1,235
Universal Compression Holdings * ....................... 51,800 1,735
--------
9,785
Oil and Natural Gas Exploration and Production - 3.8%
Atwood Oceanics, Inc. * ................................ 42,800 1,899
Newfiel d Exploration Co. * ............................ 58,200 2,277
Patterson Energy, Inc. * ............................... 50,900 1,451
Pride International, Inc. * ............................ 116,000 2,871
Stone Energy Corp. * ................................... 40,600 2,426
--------
10,924
Personal and Commercial Lending - 0.6%
Metris Cos., Inc. ...................................... 64,800 1,628
Retail - Department Stores - 4.3%
99 Cents Only Stores * ................................. 66,799 2,664
Insight Enterprises, Inc. * ............................ 46,800 2,776
Linens 'N Things, Inc. * ............................... 69,200 1,877
MarketWatch.com, Inc. * ................................ 83,000 1,561
Pacific Sunwear of California, Inc. * .................. 52,500 984
Too, Inc. * ............................................ 39,700 1,010
Tweeter Home Entertainment Group, Inc. ................. 50,100 1,522
--------
12,394
Retail - Drug Stores - 0.6%
Duane Reade, Inc. * .................................... 62,100 1,599
Retail - Food - 1.5%
Applebee's International, Inc. ......................... 47,400 1,437
RARE Hospitality International, Inc. * ................. 45,700 1,291
Whole Foods Market, Inc. * ............................. 42,300 1,747
--------
4,475
Steel - 0.9%
Lone Star Technologies, Inc. * ......................... 58,400 2,701
Telecommunication Equipment - 5.3%
Accelerated Networks, Inc. * ........................... 500 21
Advanced Radio Telecom Corp. * ......................... 101,400 1,483
Brightpoint, Inc. * .................................... 202,100 1,749
Pinnacle Holdings, Inc. * .............................. 44,200 2,387
Powertel, Inc. ......................................... 24,700 1,752
Powerwave Technologies, Inc. * ......................... 40,800 1,795
Radyne ComStream, Inc. * ............................... 42,300 613
SBA Communications Corp. * ............................. 61,900 3,215
Stratos Lightwave, Inc. * .............................. 4,200 117
Terayon Communication Systems, Inc. * .................. 28,000 1,799
Tollgrade Communications, Inc. ......................... 3,400 451
--------
15,382
Telecommunication Services - 6.6%
Airgate PCS, Inc. * .................................... 37,300 1,961
98
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Telecommunication Services - Continued
Apex, Inc. * ..................................... 63,500 $ 2,778
CoreComm, Ltd. * ................................. 52,950 1,033
Cost Plus, Inc. * ................................ 66,350 1,903
CTC Communications Group, Inc. ................... 37,000 1,332
I-Link, Inc. * ................................... 195,000 1,048
Orckit Communications, Ltd. * .................... 58,000 1,747
Rural Cellular Corp. - Cl. A * ................... 21,900 1,677
Telaxis Communications Corp. * ................... 47,100 1,472
Ubiquitel, Inc. * ................................ 105,100 992
US LEC Corp. - Cl. A * ........................... 63,800 1,085
Wink Communications, Inc. * ...................... 70,900 2,162
--------
19,190
Transportation Services - 1.1%
Expeditors International of Washington, Inc. ..... 31,900 1,515
Forward Air Corp. * .............................. 43,600 1,744
--------
3,259
--------
TOTAL COMMON STOCK- 97.5% 283,700
Par
Value
(000's)
SHORT TERM INVESTMENTS - 2.5%
Investment in joint repurchase agreement
with Barclays Bank plc dated 06/30/00,
6.55% due 07/03/00 (Secured by $140 U.S.
Treasury Notes, 9.125% due 05/15/18,
Market Value $143 and $41 U.S. Treasury
Bonds, 8.125% due 05/15/21, Market Value $42)
6.55% due 07/03/00 .............................. $ 7,215 7,215
--------- --------
TOTAL INVESTMENTS- 100.0% 290,915
Receivables, less Cash and payables- 0.0% 17
--------- --------
NET ASSETS- 100.0% 290,932
========= ========
* Non-income producing security.
See notes to financial statements.
99
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Australia - 1.7%
Amcor, Ltd. (CONT) ........................................ 2,400 $ 8
AMP, Ltd. (INSU) .......................................... 2,700 27
Boral, Ltd. (CONS) ........................................ 2,900 4
Brambles Industries, Ltd. (DIOP) .......................... 900 28
Broken Hill Proprietary Co., Ltd. (DIOP) .................. 3,400 40
CSR, Ltd. (CONS) .......................................... 1,600 4
Howard Smith, Ltd. (DIOP) ................................. 2,100 10
Lend Lease Corp. (FINL) ................................... 2,200 28
Lion Nathan, Ltd. (FOOD) .................................. 2,800 6
National Australia Bank, Ltd. (BANK) ...................... 2,700 45
News Corp., Ltd. (MEDI) ................................... 6,000 83
Origin Energy (ENER) ...................................... 2,900 3
Paperlinx (PAPR) .......................................... 967 2
Qantas Airways, Ltd. (TRAN) ............................... 3,382 7
QBE Insurance Group, Ltd. (INSU) .......................... 5,048 25
Rio Tinto, Ltd. (PMET) .................................... 1,500 25
Santos, Ltd. (OILX) ....................................... 4,400 13
Telstra Corp., Ltd. (TELS) ................................ 16,800 68
Westpac Banking Corp., Ltd. (BANK) ........................ 9,000 65
WMC, Ltd. (DIOP) .......................................... 2,500 11
Woolworth's, Ltd. (RETS) .................................. 6,100 23
-------
525
Austria - 0.0%
Austria Tabak AG (FOOD) ................................... 200 7
Belgium - 0.3%
Electrabel SA (UTIE) ...................................... 170 42
Fortis (B) (INSU) ......................................... 1,848 54
-------
96
Canada - 0.8%
Agrium, Inc. (AGRI) ....................................... 1,700 15
Alcan Aluminum, Ltd. (META) ............................... 500 16
Bank of Montreal (BANK) ................................... 200 8
Canadian National Railway Co. (TRAN) ...................... 900 26
Canadian Pacific, Ltd. (TRAN) ............................. 1,100 28
Hudson's Bay Co. (RETS) ................................... 2,000 21
Imperial Oil, Ltd. (OILX) ................................. 500 12
Magna International, Inc. (AUTO) .......................... 400 19
NOVA Chemicals Corp. (CHEM) ............................... 1,048 22
Price REIT, Inc. (REIT) ................................... 200 11
Royal Bank of Canada (BANK) ............................... 600 31
Shaw Communications, Inc. (MEDI) .......................... 1,000 25
Transcanada Pipelines, Ltd. (OILE) ........................ 444 3
Westcoast Energy, Inc. (UTIG) ............................. 900 14
-------
251
Denmark - 0.2%
Tele Danmark A/S (TELS) ................................... 700 47
Finland - 0.9%
Metso OYJ (MACH) .......................................... 1,600 19
Nokia Oyj (HEAL) .......................................... 3,100 158
Sampo Insurance Co. plc (INSU) ............................ 1,400 57
UPM-Kymmene Corp. (PAPR) .................................. 1,400 35
-------
269
France - 2.7%
Air Liquide (CHEM) ........................................ 418 54
Alcatel (TELE) ............................................ 900 59
Alcatel SA - ADR (TELE) ................................... 729 48
AXA SA (INSU) ............................................. 105 17
Banque Nationale de Paris (BANK) .......................... 878 84
Compagnie de St. Gobain (CONS) ............................ 236 32
France Telecom (TELS) ..................................... 380 53
Groupe Air France (TRAN) .................................. 1,440 25
Groupe Danone (FOOD) ...................................... 340 45
L'Oreal (HNBA) ............................................ 40 35
Rhone-Poulenc SA (BANK) ................................... 890 65
Schneider SA (MACH) ....................................... 430 30
Societe Generale - Cl. A (BANK) ........................... 1,060 64
Suez Lyonnaise des Eaux (DIOP) ............................ 140 25
Thomson CFS (ETRN) ........................................ 720 28
Total Fina SA - Cl. B (OILX) .............................. 854 131
Vivendi (DIOP) ............................................ 380 34
-------
829
Germany - 1.4%
Allianz AG - Reg. (INSU) .................................. 318 114
Bayer AG (CHEM) ........................................... 2,000 78
Bayerische Motoren Werke AG (AUTO) ........................ 950 29
Continental AG (PART) ..................................... 1,300 22
E.On AG (DIOP) ............................................ 1,920 93
SAP AG (SOFT) ............................................. 150 22
Siemens AG (DIOP) ......................................... 400 60
-------
418
Hong Kong - 0.1%
Henderson Land Development Co., Ltd. (READ) ............... 8,000 35
Ireland - 0.2%
Bank of Ireland (BANK) .................................... 3,700 23
eircom plc - ADR (TELS) ................................... 18,000 48
-------
71
Italy - 0.9%
Assicurazioni Generali (INSU) ............................. 900 31
ENI SpA (OILS) ............................................ 15,000 86
La Rinascente SpA (CONS) .................................. 2,817 16
San Paolo-IMI SpA (BANK) .................................. 3,135 56
Telecom Italia Mobile SpA (TELS) .......................... 5,000 51
Telecom Italia SpA (TELS) ................................. 3,000 41
-------
281
Japan - 9.4%
Acom Co., Ltd. (LEND) ..................................... 600 50
Asahi Bank, Ltd. (BANK) ................................... 6,000 25
Bank of Tokyo-Mitsubishi (BANK) ........................... 6,000 72
100
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Japan - Continued
Benesse Corp. (COMM) ...................................... 300 $ 21
Bridgestone Corp. (PART) .................................. 2,000 42
Canon, Inc. (COMM) ........................................ 2,000 99
Dai - Ichi Kangyo Bank, Ltd. (FINL) ....................... 4,000 30
Dai Nippon Printng Co., Ltd. (COMM) ....................... 1,000 18
Daikin Industries, Ltd. (CONS) ............................ 2,000 46
Denso Corp. (ETRN) ........................................ 1,000 24
East Japan Railway Co. (TRAN) ............................. 5 29
Fanuc, Ltd. (ELEQ) ........................................ 500 51
Fuji Bank, Ltd. (BANK) .................................... 6,000 46
Fuji Photo Film (LEIS) .................................... 1,000 41
Fujitsu, Ltd. (ELEQ) ...................................... 4,000 138
Hitachi, Ltd. (ETRN) ...................................... 4,000 58
Honda Motor Co. (AUTO) .................................... 3,000 102
Hoya Corp. (ETRN) ......................................... 1,000 90
Kamigumi Co., Ltd. (TRAN) ................................. 3,000 16
KAO Corp. (HNBA) .......................................... 2,000 61
Kirin Brewery Co. (FOOD) .................................. 2,000 25
Kuraray Co., Ltd. (APPA) .................................. 4,000 46
Kyocera Corp. (ETRN) ...................................... 100 17
Matsushita Electric Industrial Co. (ETRN) ................. 3,000 78
Mitsubishi Corp. (DIOP) ................................... 3,000 27
Mitsubishi Estate Co., Ltd. (REAL) ........................ 5,000 59
Mitsubishi Trust & Banking Corp. (BANK) ................... 2,000 15
NEC Corp. (COMP) .......................................... 4,000 126
NGK Insulators (PART) ..................................... 3,000 37
Nintendo Corp., Ltd. (LEIS) ............................... 400 70
Nippon Steel Co. (STEE) ................................... 20,000 42
Nippon Telegraph & Telephone Corp. (UTIT) ................. 14 186
Nissin Food Products Co., Ltd. (FOOD) ..................... 800 20
Nomura Securities Co., Ltd. (FUND) ........................ 4,000 98
Omron Corp. (ETRN) ........................................ 1,000 27
Orix Corp. (FINL) ......................................... 300 44
Rohm Co., Ltd. (ETRN) ..................................... 100 29
Sankyo Co., Ltd. (HEAL) ................................... 1,000 23
Santen Pharmaceutical Co., Ltd. (HEAL) .................... 1,000 24
Secom Co. (ETRN) .......................................... 1,000 73
Shin-Etsu Chemical Co. (CHEM) ............................. 1,000 51
Softbank Corp. (BANK) ..................................... 300 41
Sony Corp. (ETRN) ......................................... 1,400 131
Sumitomo Bank (BANK) ...................................... 3,000 37
Sumitomo Chemical Co. (CHEM) .............................. 5,000 30
Sumitomo Electric Industries (DIOP) ....................... 2,000 34
Takeda Chemical Industries (CHEM) ......................... 1,000 66
Takefuji Corp. (LEND) ..................................... 200 24
TDK Corp. (COMP) .......................................... 1,000 144
Tokio Marine & Fire Insurance Co. (INSU) .................. 2,000 23
Tokyo Gas Co. (UTIG) ...................................... 11,000 31
Toyota Motor Corp. (AUTO) ................................. 2,000 91
Yamato Transport Co., Ltd. (TRAN) ......................... 1,000 25
-------
2,853
Netherlands - 1.7%
ABN Amro Holding NV (BANK) ................................ 1,657 40
Aegon NV (INSU) ........................................... 1,810 64
Elsevier NV (MEDP) ........................................ 6,200 75
Heineken NV (FOOD) ........................................ 1,900 116
ING Groep NV (BANK) ....................................... 1,033 70
Koninklijke Philips Electronics NV (ETRN) ................. 700 33
TNT Post Group NV (TRAN) .................................. 1,109 30
Wolters Kluwer NV - CVA (MEDP) ............................ 3,440 92
-------
520
New Zealand - 0.1%
Auckland International (TRAN) ............................. 2,400 3
Carter Holt Harvey, Ltd. (PAPR) ........................... 3,700 3
Telecom Corp. of New Zealand, Ltd. (TELS) ................. 3,100 11
-------
17
Panama - 0.2%
Carnival Corp. (LEIS) ..................................... 3,100 61
Portugal - 0.5%
Brisa-Auto Estradas de Portugal, SA (CONS) ................ 3,300 28
EDP-Electricidade de Portugal SA (UTIE) ................... 1,500 27
Portugal Telecom, SA (TELS) ............................... 8,500 96
-------
151
Singapore - 0.3%
DBS Group Holdings, Ltd. (BANK) ........................... 1,000 13
SIA Engineering Co., Ltd. (ENGI) .......................... 3,000 3
Singapore Airport Terminal Services, Ltd. (TRAN) .......... 2,000 2
Singapore Press Holdings, Ltd. (MEDP) ..................... 1,948 31
United Overseas Bank, Ltd. (BANK) ......................... 5,336 35
-------
84
Spain - 0.8%
Banco Popular Espanol SA (BANK) ........................... 1,603 49
Banco Santander Central Hispano SA (BANK) ................. 4,275 45
Endesa SA (UTIE) .......................................... 1,380 27
Tabacalera S.A. - Cl. A (FOOD) ............................ 4,300 66
Telefonica SA (UTIT) ...................................... 2,920 63
-------
250
Sweden - 0.9%
Electrolux AB - Ser. B (APPL) ............................. 2,620 40
Investor AB - B Shares (FUND) ............................. 2,490 34
Nordbanken Holding (BANK) ................................. 8,540 64
Swedish Match (FOOD) ...................................... 9,630 30
Telefonaktiebolaget LM Ericsson AB (TELS) ................. 5,600 111
-------
279
101
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Switzerland - 0.9%
ABB, Ltd. (ENGI) .......................................... 305 $ 36
Givaudan (TELS) ........................................... 5 2
Nestle SA (FOOD) .......................................... 37 74
Novartis AG - Reg. (HEAL) ................................. 57 90
Roche Holding AG (HEAL) ................................... 5 49
Swisscom AG - Reg. (UTIT) ................................. 58 20
-------
271
United Kingdom - 6.9%
Allied Zurich plc (INSU) .................................. 2,950 35
AstraZeneca Group plc (HEAL) .............................. 1,028 48
BP Amoco plc (OILE) ....................................... 14,974 144
British Airways plc (TRAN) ................................ 6,000 34
British Telecommunications plc (TELS) ..................... 8,000 103
Charter plc (DIOP) ........................................ 11,372 66
De Vere Group plc (RETF) .................................. 1,500 7
Diageo plc (FOOD) ......................................... 5,739 52
FKI plc (DIOP) ............................................ 7,000 25
Glaxo Wellcome plc (HEAL) ................................. 10,300 300
House of Fraser plc (RETS) ................................ 7,000 5
HSBC Holdings plc (BANK) .................................. 3,000 34
Invensys, plc (DIOP) ...................................... 2,000 8
Kelda Group plc (AGRI) .................................... 8,000 39
Lloyds TSB Group plc (BANK) ............................... 13,000 123
Marconi plc (TELE) ........................................ 9,400 122
Marks & Spencer plc (RETS) ................................ 7,000 25
National Power plc (UTIE) ................................. 8,000 51
Nycomed Amersham plc (HEAL) ............................... 5,000 50
Peninsular & Oriental Steam Navigation Co. (TRAN) ......... 2,654 23
PowerGen plc (UTIE) ....................................... 4,000 34
Prudential Corp. (INSU) ................................... 4,000 59
Reckitt Benckiser plc (HNBA) .............................. 2,000 22
Reed International plc (MEDP) ............................. 6,000 52
RJB Mining plc (META) ..................................... 5,500 5
Royal & Sun Alliance Insurance Group plc (INSU). .......... 11,494 75
Royal Bank of Scotland Group (BANK) ....................... 4,000 67
Scottish & Newcastle plc (FOOD) ........................... 3,000 24
Scottish and Southern Energy plc (UTIE) ................... 5,900 54
Shell Transport & Trading Co. plc (OILX) .................. 6,000 50
SmithKline Beecham plc (HEAL) ............................. 2,000 26
Tesco plc (RETF) .......................................... 16,000 50
Thames Water plc (AGRI) ................................... 1,583 20
Trinity Mirror plc (MEDP) ................................. 3,800 34
Unilever plc (CNSU) ....................................... 9,000 54
United News & Media plc (MEDP) ............................ 3,000 43
Vodafone AirTouch plc (TELS) .............................. 38,275 155
-------
2,118
United States - 23.7%
American Electric Power Co. (UTIE) ........................ 5,220 155
American General Corp. (INSU) ............................. 1,800 110
Aon Corp. (INSU) .......................................... 5,500 171
Associates First Capital Corp. - Cl. A (FINL).............. 7,400 165
Baxter International, Inc. (HEAL) ......................... 3,500 246
Burlington Northern Santa Fe (TRAN) ....................... 12,500 287
Cigna Corp. (INSU) ........................................ 2,700 253
Compaq Computer Corp. (COMP) .............................. 7,600 194
Computer Sciences Corp. (SOFT) ............................ 300 22
CVS Corp. (RETS) .......................................... 1,600 64
Dell Computer Corp. (COMP) ................................ 1,900 94
Electronic Data Systems Corp. (SOFT) ...................... 7,500 309
Eli Lilly & Co. (HEAL) .................................... 900 90
Emerson Electric Co. (ELEQ) ............................... 4,000 242
Entergy Corp. (UTIE) ...................................... 4,400 120
Exxon Mobil Corp. (OILX) .................................. 2,000 157
Fedex Corp. (TRAN) ........................................ 6,900 262
First Data Corp. (SOFT) ................................... 4,300 213
FleetBoston Financial Corp. (BANK) ........................ 5,100 173
Gateway, Inc. (COMP) ...................................... 4,600 261
Household International, Inc. (LEND) ...................... 3,400 141
Illinois Tool Works, Inc. (DIOP) .......................... 4,200 239
Johnson & Johnson (HEAL) .................................. 2,500 255
Kimberly-Clark Corp. (PAPR) ............................... 1,800 103
Lexmark International Group, Inc. - Cl. A (COMP) .......... 2,500 168
Masco Corp. (HOUS) ........................................ 11,600 210
Mattel, Inc. (LEIS) ....................................... 12,600 166
Microsoft Corp. (SOFT) .................................... 1,900 152
Newell Rubbermaid, Inc. (CNSU) ............................ 6,600 170
PepsiCo, Inc. (FOOD) ...................................... 4,100 182
PNC Bank Corp. (BANK) ..................................... 2,600 122
Praxair, Inc. (CHEM) ...................................... 3,400 127
Raytheon Co. - Cl. B (AERO) ............................... 6,000 116
Sara Lee Corp. (FOOD) ..................................... 2,400 46
SBC Communications, Inc. (UTIT) ........................... 4,800 208
Schering-Plough Corp. (HEAL) .............................. 1,300 66
Tellabs, Inc. (TELE) ...................................... 1,700 116
Texas Instruments, Inc. (ETRN) ............................ 3,700 254
The Kroger Co. (FOOD) ..................................... 8,700 192
UnitedHealth Group, Inc. (HEAL) ........................... 2,500 214
Wal-Mart Stores, Inc. (RETS) .............................. 1,800 104
Wells Fargo & Co. (BANK) .................................. 5,600 217
Xerox Corp. (COMP) ........................................ 3,800 79
-------
7,235
-------
TOTAL COMMON STOCK- 54.6% 16,668
PREFERRED STOCK - 0.3%
Australia - 0.3%
National Australia Bank (BANK) ............................ 1,700 48
News Corp., Ltd. (MEDI) .................................. 2,600 32
-------
80
-------
TOTAL PREFERRED STOCK- 0.3% 80
102
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Australia - 0.7%
Queensland Treasury Corp. - Bonds (FORG)
6.5% due 06/14/05 .............................. $ 350 $ 210
Canada - 2.5%
Government of Canada - Debs. (GOVF)
4.25% due 12/01/21 ............................. 420 345
Government of Canada - Bond (GOVF)
6.0% due 06/01/08 .............................. 600 408
-------
753
Denmark - 1.5%
Kingdom of Denmark - Bonds (GOVF)
7.0% due 11/10/24 .............................. 600 88
8.0% due 11/15/01 .............................. 1,400 184
Kingdom of Denmark - Bullet Bond (GOVF)
8.0% due 03/15/06 .............................. 1,300 184
-------
456
France - 5.7%
CADES (GOVF)
6.25% due 03/05/08 ............................. 410 619
Government of France - Debs. (GOVF)
4.0% due 10/25/09 .............................. 190 164
Government of France - Bonds (GOVF)
5.5% due 10/12/01 .............................. 660 635
5.5% due 04/25/29 .............................. 350 329
-------
1,747
Germany - 2.9%
DePfa Deutsche Pfandbriefbank AG (BANK)
5.75% due 03/04/09 ............................. 380 361
Federal Republic of Germany - Bonds (GOVF)
6.0% due 06/20/16 .............................. 180 185
Treuhandanstalt (FORG)
7.375% due 12/02/02 ............................ 350 351
-------
897
Italy - 2.8%
Republic of Italy (GOVF)
3.25% due 04/15/04 .............................. 620 552
9.5% due 02/01/06 ............................... 275 313
-------
865
Japan - 4.8%
Government of Japan - Bonds (GOVF)
3.3% due 09/20/05 ............................... 140,000 1,462
Netherlands - 0.9%
Government of Netherlands (GOVF)
5.5% due 01/15/28 ............................... 70 66
5.75% due 02/15/07 .............................. 210 206
-------
272
Spain - 1.8%
Government of Spain - Bonds (GOVF)
3.25% due 01/31/05 .............................. 630 552
Supra National - 0.4%
Government of Netherlands - Bonds (GOVF)
3.75% due 07/15/09 .............................. 65 55
Queensland Treasury Corp. (FORG)
6.0% due 07/14/09 ............................... 100 58
113
Sweden - 1.0%
Government of Sweden - Debs. (GOVF)
6.5% due 10/25/06 ............................... 2,200 265
Government of Sweden - Bonds (GOVF)
10.25% due 05/05/03 ............................. 300 38
-------
303
United States - 15.7%
Federal National Mortgage Assoc. (GOVA)
5.25% due 01/15/09 .............................. 340 300
U.S. Treasury - Inflation Index (GOVE)
3.875% due 04/15/29 ............................. 1,216 1,211
U.S. Treasury - Notes (GOVE)
5.75% due 08/15/03 .............................. 1,440 1,415
6.125% due 12/31/01 ............................. 140 139
7.0% due 07/15/06 ............................... 400 415
U.S. Treasury - Bonds (GOVE)
8.0% due 11/15/21 ............................... 1,035 1,251
8.75% due 05/15/17 .............................. 50 63
-------
4,794
-------
TOTAL PUBLICLY-TRADED BONDS- 40.7% 12,424
SHORT-TERM INVESTMENTS - 2.9%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ............................. 894 894
------- -------
TOTAL INVESTMENTS- 98.5% 30,066
Receivables, less cash and payables- 1.5% 448
------- -------
NET ASSETS- 100.0% 30,514
ADR - American Depository Receipts
See notes to financial statements
103
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BALANCED PORTFOLIO
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
% of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Foreign Governmental .............. GOVF $6,308 21.6%
U.S. Governmental ................. GOVE 4,494 15.4%
Banks ............................. BANK 2,141 7.3%
Health Care Products .............. HEAL 1,639 5.6%
Insurance ......................... INSU 1,113 3.8%
Computer Equipment ................ COMP 1,065 3.7%
Food, Beverage and Tobacco ........ FOOD 886 3.0%
U.S. Government Agencies .......... ETRN 851 2.9%
Electronic Products and Services .. GOVE 842 2.9%
Transportation Services ........... TELS 797 2.7%
Telecommunication Services ........ DIOP 785 2.7%
Computer Software and Services .... TELE 720 2.5%
Diversified Operations ............ UTIT 699 2.4%
Electric Power .................... AUTO 509 1.7%
Telephone ......................... TRAN 476 1.6%
Electrical Equipment .............. MEDP 431 1.5%
Chemicals ......................... UTIE 428 1.5%
Foreign ........................... ELEQ 409 1.4%
Oil and Natural Gas Exploration ... RETF 364 1.3%
Telecommunication Equipment ....... CHEM 346 1.2%
Leisure and Recreation ............ FORG 337 1.2%
Media - Publishing ................ SOFT 327 1.1%
Financial Services ................ COMM 268 0.9%
Retail - Department Stores ........ RETS 241 0.8%
Automobile ........................ CONS 241 0.8%
Consumer Miscellaneous ............ FINL 224 0.8%
Personal and Commercial Lending ... MACH 216 0.7%
Housing ........................... OILS 210 0.7%
Oil - Equipment and Services ...... OILE 147 0.5%
Paper and Forest Products ......... PART 143 0.5%
Media - TV / Radio ................ OILX 138 0.5%
Commercial Services ............... PAPR 138 0.5%
Brokerage and Investment Management LEIS 132 0.5%
Construction ...................... FUND 131 0.5%
Cosmetics and Personal Care ....... APPL 118 0.4%
Aerospace and Defense ............. CNSU 115 0.4%
Auto and Truck Parts .............. MEDI 101 0.3%
Oil ............................... AGRI 87 0.3%
Agricultural Operations ........... HNBA 74 0.3%
Real Estate Operations ............ REAL 59 0.2%
Retail - Food ..................... LEND 57 0.2%
Machinery ......................... META 49 0.2%
Shoe and Apparel Manufacturing .... APPA 46 0.2%
Natural Gas Distribution .......... UTIG 45 0.2%
Steel ............................. UTIG 42 0.1%
Household Appliances .............. UTIG 41 0.1%
Engineering and Construction ...... UTIG 40 0.1%
Real Estate Development ........... UTIG 35 0.1%
Precious Metals/Gems/Stones ....... UTIG 25 0.1%
Metals and Mining ................. UTIG 20 0.1%
Real Estate Investment Trust ...... UTIG 11 0.0%
Containers ........................ UTIG 8 0.0%
Energy - Alternative Source ....... UTIG 3 0.0%
-------- --------
$29,172 100.0%
======== ========
104
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Brokerage and Investment Management - 0.4%
E*TRADE Group, Inc. * .......................... 148,395 $ 2,448
Commercial Services - 6.3%
Apollo Group, Inc. - Cl. A * ................... 404,569 11,328
Lamar Advertising Co. * ........................ 280,820 12,163
TMP Worldwide, Inc. * .......................... 168,820 12,461
--------
35,952
Computer Equipment - 2.2%
StorageNetworks, Inc. * ........................ 5,615 507
VeriSign, Inc. ................................. 66,430 11,725
--------
12,232
Computer Software and Services - 11.0%
Brocade Communications Systems, Inc. * ......... 38,305 7,028
CNET Networks, Inc. ............................ 198,110 4,866
DoubleClick, Inc. * ............................ 291,270 11,105
Exodus Communications, Inc. * .................. 126,540 5,829
Inktomi Corp. * ................................ 47,580 5,626
Liberate Technologies, Inc. * .................. 132,320 3,879
Portal Software, Inc. * ........................ 164,855 10,530
PSINet, Inc. * ................................. 517,675 13,007
TenFold Corporation * .......................... 33,665 553
--------
62,423
Electrical Equipment - 2.1%
Integrated Device Technology, Inc. * ........... 195,855 11,727
Electronic Products and Services - 10.2%
Cree, Inc. * ................................... 39,835 5,318
Intersil Hol ding Corp. * ...................... 138,360 7,480
MRV Communications, Inc. * ..................... 88,060 5,922
SDL, Inc. * .................................... 39,445 11,249
Semtech Corp. * ................................ 74,245 5,678
Viasytsems Group, Inc. ......................... 366,505 5,933
Vitesse Semiconductor Corp. * .................. 143,795 10,578
Xilinx, Inc. * ................................. 72,440 5,981
--------
58,139
Financial Services - 3.0%
Paychex, Inc. .................................. 408,133 17,141
Health Care Products - 21.0%
Abgenix, Inc. * ................................ 107,280 12,858
Andrx Corp. * .................................. 146,305 9,352
CuraGen Corp. * ................................ 136,040 5,178
Human Genome Sciences, Inc. * .................. 117,110 15,620
King Pharmaceuticals, Inc. * ................... 283,605 12,443
Maxygen, Inc. * ................................ 64,070 3,637
Medarex, Inc. * ................................ 139,880 11,820
MedImmune, Inc. * .............................. 83,725 6,196
Millennium Pharmaceuticals, Inc. * ............. 138,420 15,486
MiniMed, Inc. * ................................ 78,165 9,223
Sepracor, Inc. * ............................... 142,680 17,211
--------
119,024
Leisure and Recreation - 3.6%
Premier Parks, Inc. * .......................... 422,170 9,604
SFX Entertainment, Inc. * ...................... 241,195 10,929
--------
20,533
Media - TV/Radio - 9.2%
Citadel Communications Corp. * ................. 125,835 4,396
Cox Radio, Inc. - Cl. A * ...................... 618,050 17,306
Entercom Communications Corp. * ................ 145,105 7,074
Hispanic Broadcasting Corp. * .................. 291,030 9,640
Radio One, Inc. * .............................. 188,360 5,569
Radio One, Inc. - Cl. D * ...................... 376,720 8,311
--------
52,296
Oil - Equipment and Services - 1.9%
Hanover Compressor Co. * ....................... 181,440 6,895
Universal Compression Holdings * ............... 108,355 3,630
--------
10,525
Retail - Department Stores - 0.7%
Priceline.com, Inc. * .......................... 107,645 4,089
Telecommunication Equipment - 11.1%
American Tower Corp. - Cl. A ................... 328,875 13,710
Crown Castle International Corp. ............... 478,085 17,450
Pinnacle Hol dings, Inc. * ..................... 77,825 4,203
Powertel, Inc. ................................. 125,025 8,869
RF Micro Devices, Inc. * ....................... 134,635 11,797
TriQuint Semiconductor, Inc. * ................. 73,415 7,025
--------
63,054
Telecommunication Services - 8.8%
AT&T Canada, Inc. * ............................ 322,850 10,715
Clearnet Communications, Inc. - Cl. A * ........ 163,510 4,540
McLeodUSA, Inc. - Cl. A * ...................... 489,645 10,129
Microcell Telecommunications, Inc. * ........... 122,246 4,416
Millicom International Cellular SA * ........... 10,285 360
Net2Phone, Inc. * .............................. 114,090 4,072
Netro Corp. * .................................. 8,350 479
VoiceStream Wireless Corp. * ...................
Western Wireless Corp. - Cl. A * ............... 282,105 15,375
--------
50,086
Telephone - 1.1%
Metromedia Fiber Network, Inc. - Cl. A * ....... 157,175 6,238
--------
TOTAL COMMON STOCK- 92.6% 525,907
105
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP GROWTH PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 4.5%
Federal Home Loan Discount Notes
5.95% due 07/03/00 ............................ $ 25,400 25,391
TOTAL INVESTMENTS- 97.1% 551,298
Cash and Receivables, less payables- 2.9% 16,490
--------- --------
NET ASSETS- 100.0% 567,788
========= ========
* Non-income producing security.
See notes to financial statements.
106
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP BLEND PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.7%
General Dynamics Corp. ......................... 1,300 $ 68
Auto and Truck Parts - 0.6%
Dana Corp. ..................................... 1,000 21
Johnson Controls, Inc. ......................... 600 31
Meritor Automotive, Inc. ....................... 900 10
------
62
Banks - 5.0%
AmSouth Bancorporation ......................... 5,100 80
Charter One Financial, Inc. .................... 1,000 23
Comerica, Inc. ................................. 3,600 161
Golden West Financial Corp. .................... 2,300 94
KeyCorp ........................................ 7,300 129
------
487
Business Services - 0.3%
Harris Corp. ................................... 900 29
Chemicals - 2.5%
Air Products & Chemicals, Inc. ................. 3,100 95
Eastman Chemical Co. ........................... 1,100 52
Millennium Chemicals, Inc. ..................... 1,700 29
Praxair, Inc. .................................. 1,300 49
Rohm & Haas Co. ................................ 600 21
------
246
Commercial Services - 3.1%
Convergys Corp. ................................ 1,800 93
Lamar Advertising Co. .......................... 2,700 117
R.R. Donnelley & Sons Co. ...................... 1,500 34
Sybase, Inc. ................................... 2,500 58
------
302
Computer Equipment - 1.0%
Lexmark International Group, Inc. -
Cl. A ......................................... 1,500 101
Computer Software and Services - 9.8%
Cadence Design Systems, Inc. ................... 4,800 98
DST Systems, Inc. .............................. 1,500 114
Fiserv, Inc. ................................... 3,400 147
Intuit, Inc. ................................... 4,000 165
NCR Corp. ...................................... 2,000 78
Portal Software, Inc. .......................... 2,500 160
Rational Software Corp. ........................ 1,200 111
SunGard Data Systems, Inc. ..................... 2,600 81
------
954
Consumer - Miscellaneous - 3.1%
American Greetings Corp. - Cl. A ............... 1,500 28
Avery Dennison Corp. ........................... 900 60
Black & Decker Corp. ........................... 3,400 134
Parker-Hannifin Corp. .......................... 1,400 48
Sherwin-Williams Co. ........................... 1,300 28
------
298
Cosmetics and Personal Care Products - 0.7%
Avon Products, Inc. ............................ 1,600 71
Diversified Operations - 3.1%
Danaher Corp. .................................. 900 44
Eaton Corp. .................................... 500 34
El Paso Energy Corp. ........................... 2,500 127
Illinois Tool Works, Inc. ...................... 400 23
Reynolds & Reynolds Co. - Cl. A ................ 2,300 42
Textron, Inc. .................................. 600 33
------
303
Electric Power - 2.9%
Constellation Energy Group ..................... 1,700 55
Dominion Resources, Inc. ....................... 1,700 73
Entergy Corp. .................................. 700 19
FPL Group, Inc. ................................ 500 25
Pinnacle West Capital Corp. .................... 1,900 65
Reliant Energy, Inc. ........................... 1,600 47
------
284
Electrical Equipment - 1.2%
American Power Conversion ...................... 2,400 98
Pentair, Inc. .................................. 600 21
------
119
Electronic Products and Services - 13.9%
Altera Corp. ................................... 200 20
Anadigics, Inc. ................................ 1,200 41
Applied Micro Circuits Corp. ................... 1,000 99
Atmel Corp. .................................... 3,000 111
Jabil Circuit, Inc. ............................ 1,800 89
Lam Research Corp. ............................. 2,600 97
Linear Technology Corp. ........................ 800 51
Maxim Integrated Products, Inc. ................ 1,300 88
Millipore Corp. ................................ 900 68
Novellus Systems, Inc. ......................... 1,300 73
Pitney Bowes, Inc. ............................. 2,400 96
Sanmina Corp. .................................. 1,200 103
SCI Systems, Inc. .............................. 3,000 118
Tektronix, Inc. ................................ 300 22
Teradyne, Inc. ................................. 300 22
Vishay Intertechnology, Inc. ................... 1,900 72
Vitesse Semiconductor Corp. .................... 1,100 81
Waters Corp. ................................... 400 50
Xilinx, Inc. ................................... 600 50
------
1,351
Food, Beverage and Tobacco - 0.8%
Quaker Oats Co. ................................ 200 15
Starbucks Corp. ................................ 1,700 65
------
80
Health Care Products - 11.3%
Allergan, Inc. ................................. 2,300 171
ALZA Corp. ..................................... 900 53
107
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP BLEND PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Bausch & Lomb, Inc. ............................ 1,900 $ 147
Becton, Dickinson & Co. ........................ 1,400 40
Cephalon, Inc. ................................. 1,600 96
CV Therapeutics, Inc. .......................... 900 62
Forest Laboratories, Inc. ...................... 1,000 101
Genzyme Corp. (General Division) ............... 900 54
MedImmune, Inc. ................................ 1,300 96
QLT PhotoTherapeutics, Inc. .................... 1,900 147
Stryker Corp. .................................. 1,200 53
UnitedHealth Group, Inc. ....................... 1,000 86
------
1,106
Health Care Services - 0.8%
Health Management Associates, Inc. -
Cl. A ........................................ 3,200 42
Wellpoint Health Networks, Inc. ................ 500 36
------
78
Household Appliances/Furnishings - 0.6%
Leggett & Platt, Inc. .......................... 3,300 54
Insurance - 6.7%
Aon Corp. ...................................... 4,500 140
AXA Financial, Inc. ............................ 1,500 51
Lincoln National Corp. ......................... 3,900 141
PartnerRe, Ltd. ................................ 1,000 36
St. Paul Cos., Inc. ............................ 3,000 102
Torchmark, Inc. ................................ 2,000 49
XL Capital, Ltd. - Cl. A ....................... 2,500 135
------
654
Leisure and Recreation - 0.7%
SABRE Group Holdings, Inc. ..................... 2,300 66
Machinery - 1.6%
Dover Corp. .................................... 600 24
Ingersoll-Rand Co. ............................. 3,200 129
------
153
Media - Publishing - 1.5%
Knight-Ridder, Inc. ............................ 800 43
New York Times Co. - Cl. A ..................... 1,400 55
Tribune Co. .................................... 1,500 52
------
150
Media - TV/Radio - 1.8%
Hispanic Broadcasting Corp. .................... 1,900 63
Westwood One, Inc. ............................. 3,300 113
------
176
Oil - 0.5%
Conoco, Inc. - Cl. A ........................... 2,200 48
Oil - Equipment and Services - 0.9%
Anadarko Petroleum Corp. ....................... 1,700 84
Oil and Natural Gas Exploration and
Production - 4.9%
Apache Corp. ................................... 1,400 82
Burlington Resources, Inc. ..................... 800 31
Kerr-McGee Corp. ............................... 1,400 83
Noble Drilling Corp. ........................... 3,900 161
Union Pacific Resources Group, Inc. ............ 2,700 59
USX-Marathon Group ............................. 2,400 60
------
476
Paper and Forest Products - 1.7%
Abitibi-Consolidated, Inc. ..................... 4,300 40
Georgia-Pacific Corp. .......................... 1,700 45
Westvaco Corp. ................................. 2,100 52
Willamette Industries, Inc. .................... 1,100 30
------
167
Retail - Department Stores - 5.9%
Circuit City Stores, Inc. ...................... 1,500 50
Family Dollar Stores, Inc. ..................... 2,400 47
Federated Department Stores, Inc. .............. 3,400 115
Intimate Brands, Inc. .......................... 1,100 22
Limited, Inc. .................................. 2,200 47
RadioShack Corp. ............................... 2,200 104
Tiffany & Co. .................................. 1,000 67
TJX Cos., Inc. ................................. 6,400 120
------
572
Retail - Food - 0.5%
Brinker International, Inc. .................... 700 21
Outback Steakhouse, Inc. ....................... 1,100 32
------
53
Shoe and Apparel Manufacturing - 0.1%
WestPoint Stevens, Inc. ........................ 700 8
Steel - 0.7%
Nucor Corp. .................................... 800 26
USX-U.S. Steel Group, Inc. ..................... 2,300 43
------
69
Telecommunication Equipment - 2.7%
ADC Telecommunications, Inc. ................... 1,000 84
RF Micro Devices, Inc. ......................... 900 79
Scientific-Atlanta, Inc. ....................... 1,400 104
------
267
Telecommunication Services - 1.0%
Broadwing, Inc. ................................ 1,700 44
Clear Channel Communications, Inc. ............. 700 53
------
97
Telephone - 2.7%
AT&T Wireless Group ............................ 4,700 131
CenturyTel, Inc. ............................... 1,300 38
Telephone and Data Systems, Inc. ............... 900 90
------
259
108
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP BLEND PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - 4.2%
AMR Corp........................................ 2,500 $ 42
Burlington Northern Santa Fe.................... 2,500 57
Canadian Pacific, Ltd........................... 700 18
Delta Air Lines, Inc............................ 200 10
Kansas City Southern Industries, Inc............ 1,200 107
Norfolk Southern Corp........................... 2,600 39
Northwest Airlines Corp......................... 700 21
Southwest Airlines Co........................... 2,300 44
UAL Corp........................................ 1,200 70
------
408
------
TOTAL COMMON STOCK- 99.5% 9,700
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.6%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 ........................... $ 250 250
TOTAL INVESTMENTS- 102.1% 9,950
Payables, less cash and receivables- (2.1)% (202)
------- ------
NET ASSETS- 100.0% 9,748
See notes to financial statements.
109
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 2.0%
Boeing Co. ................................. 24,200 $ 1,012
Lockheed Martin Corp. ...................... 87,500 2,171
--------
3,183
Auto and Truck Parts - 0.8%
Dana Corp. ................................. 14,400 305
Genuine Parts Co. .......................... 45,400 908
--------
1,213
Banks - 6.4%
Bank of America Corp. ...................... 20,700 890
Bank One Corp. ............................. 58,700 1,559
Firstar Corp. .............................. 35,800 754
FleetBoston Financial Corp. ................ 68,772 2,338
J.P. Morgan & Co., Inc. .................... 15,800 1,740
KeyCorp .................................... 16,900 298
Mercantile Bankshares Corp. ................ 20,900 623
National City Corp. ........................ 36,100 616
Wells Fargo & Co. .......................... 34,400 1,333
--------
10,151
Business Services - 0.7%
Dun & Bradstreet Corp. ..................... 24,400 699
H & R Block, Inc. .......................... 11,000 356
--------
1,055
Chemicals - 2.9%
Dow Chemical Co. ........................... 35,100 1,060
E.I. du Pont de Nemours & Co. .............. 40,100 1,754
Great Lakes Chemical Corp. ................. 29,600 932
Hercules, Inc. ............................. 30,300 426
Imperial Chemical Industries plc - ADR ..... 14,500 447
--------
4,619
Commercial Services - 0.5%
R.R. Donnelley & Sons Co. .................. 36,700 828
Computer Equipment - 1.6%
Compaq Computer Corp. ...................... 43,400 1,109
Xerox Corp. ................................ 68,900 1,430
--------
2,539
Computer Software and Services - 1.4%
BMC Software, Inc. * ....................... 17,700 646
Microsoft Corp. ............................ 17,200 1,376
Unisys Corp. * ............................. 15,200 221
--------
2,243
Construction - 0.3%
Armstrong Holdings, Inc. ................... 27,500 421
Consumer - Miscellaneous - 1.8%
Fortune Brands, Inc. ....................... 24,300 560
Stanley Works .............................. 40,200 955
Tupperware Corp. ........................... 8,900 196
Unilever NV - CVA .......................... 24,900 1,142
--------
2,853
Cosmetics and Personal Care Products - 1.9%
Gillette Co. ............................... 25,800 901
International Flavors & Fragrances, Inc. ... 46,200 1,395
Procter & Gamble Co. ....................... 13,700 784
--------
3,080
Diversified Operations - 2.9%
Cooper Industries, Inc. .................... 6,700 218
Eaton Corp. ................................ 5,000 335
Minnesota Mining & Manufacturing Co. ....... 26,000 2,145
Pall Corp. ................................. 59,300 1,097
PPG Industries, Inc. ....................... 18,100 802
--------
4,597
Electric Power - 4.6%
Duke Energy Co. ............................ 36,900 2,080
Entergy Corp. .............................. 20,000 544
Firstenergy Corp. .......................... 38,800 907
Niagara Mohawk Holdings, Inc. .............. 16,400 229
Reliant Energy, Inc. ....................... 49,700 1,469
ScottishPower plc - ADR .................... 13,418 449
Southern Co. ............................... 69,900 1,629
--------
7,307
Electrical Equipment - 0.8%
Unicom Corp. ............................... 34,000 1,315
Electronic Products and Services - 1.6%
Hubbell, Inc. - Cl. B ...................... 39,000 995
Motorola, Inc. ............................. 21,400 622
Rockwell International Corp. * ............. 28,800 907
--------
2,524
Financial Services - 3.8%
Citigroup, Inc. ............................ 38,675 2,330
Mellon Financial Corp. ..................... 103,600 3,775
--------
6,105
Food, Beverage and Tobacco - 9.5%
Anheuser-Busch Cos., Inc. .................. 16,800 1,255
Brown-Forman Corp. - Cl. B ................. 13,100 704
Campbell Soup Co. .......................... 52,300 1,523
General Mills, Inc. ........................ 85,100 3,255
H.J. Heinz Co. ............................. 57,300 2,507
Hershey Foods Corp. ........................ 33,600 1,630
Kellogg Co. ................................ 35,000 1,041
McCormick & Co., Inc. ...................... 31,600 1,027
Philip Morris Cos., Inc. ................... 66,200 1,758
UST, Inc. .................................. 30,100 442
--------
15,142
Health Care Products - 6.4%
Abbott Laboratories ........................ 54,500 2,429
110
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
Market
Name of Issuer Shares Value
(000's)
<S> <C> <C>
COMMON STOCK - CONTINUED
Health Care Products - Continued
American Home Products Corp. .......................... 57,200 $ 3,361
Becton, Dickinson & Co. ............................... 18,900 542
Merck & Co., Inc. ..................................... 15,400 1,180
Pharmacia Corp. ....................................... 52,475 2,712
---------
10,224
Insurance - 5.1%
American General Corp. ................................ 34,100 2,080
Chubb Corp. ........................................... 29,500 1,814
Lincoln National Corp. ................................ 22,400 809
Safeco Corp. .......................................... 35,900 714
St. Paul Cos., Inc. ................................... 41,752 1,425
UnumProvident Corp. ................................... 60,200 1,208
---------
8,050
Leisure and Recreation - 3.2%
Eastman Kodak Co. ..................................... 37,800 2,249
Hasbro, Inc. .......................................... 40,400 609
Hilton Hotels Corp. ................................... 37,700 353
Starwood Hotels & Resorts Worldwide, Inc. ............. 56,400 1,837
---------
5,048
Media - Publishing - 1.7%
Dow Jones & Co., Inc. ................................. 10,400 762
Knight-Ridder, Inc. ................................... 23,900 1,271
Readers Digest Association, Inc. - Cl. A .............. 17,600 700
---------
2,733
Media - TV / Radio - 1.3%
The Walt Disney Co. ................................... 52,600 2,042
Metals and Mining - 0.2%
Phelps Dodge Corp. .................................... 10,300 383
Oil - 1.6%
Royal Dutch Petroleum Co. - NY Shares ................. 42,200 2,598
Oil - Equipment and Services - 1.0%
Baker Hughes, Inc. .................................... 50,500 1,616
Oil and Natural Gas Exploration and Production - 11.5%
Amerada Hess Corp. .................................... 20,200 1,247
BP Amoco plc - ADR .................................... 87,032 4,923
Chevron Corp. ......................................... 32,100 2,723
Exxon Mobil Corp. ..................................... 55,067 4,323
Texaco, Inc. .......................................... 49,200 2,620
Unocal Corp. .......................................... 49,900 1,653
USX-Marathon Group .................................... 29,700 744
---------
18,233
Paper and Forest Products - 3.4%
Consolidated Papers, Inc. ............................. 4,400 161
Fort James Corp. ...................................... 46,800 1,082
International Paper Co. ............................... 60,470 1,803
Kimberly-Clark Corp. .................................. 40,000 2,295
---------
5,341
Pollution Control - 1.2%
Waste Management, Inc. ................................ 101,290 1,924
Precious Metals/Gems/Stones - 0.4%
Newmont Mining Corp. .................................. 29,000 627
Real Estate Investment Trust - 0.6%
Simon Property Group, Inc. ............................ 45,500 1,010
Real Estate Operations - 0.6%
Rouse Co. ............................................. 35,300 874
Retail - Department Stores - 1.7%
J.C. Penney Co., Inc. ................................. 12,800 236
May Department Stores Co. ............................. 40,950 983
Toys "R" Us, Inc. * ................................... 101,400 1,476
---------
2,695
Telecommunication Services - 0.3%
Vodafone AirTouch plc - ADR .......................... 11,900 493
Telephone - 8.6%
Alltel Corp. .......................................... 35,200 2,180
AT&T Corp. ............................................ 27,700 876
Bell Atlantic Corp. ................................... 39,800 2,022
BellSouth Corp. ....................................... 36,600 1,560
GTE Corp. ............................................. 41,800 2,602
SBC Communications, Inc. .............................. 79,155 3,424
U.S. West, Inc. ....................................... 11,600 995
---------
13,659
Transportation Services - 1.8%
Norfolk Southern Corp. ................................ 63,600 946
Union Pacific Corp. ................................... 49,300 1,833
---------
2,779
U.S. Government Agencies - 1.3%
Federal National Mortgage Assoc. ...................... 39,300 2,051
---------
TOTAL COMMON STOCK- 95.4% 151,555
Par
Value
(000's)
COMMERCIAL PAPER
Financial Services - 2.3%
Assets Securitization Corp.
6.57% due 08/18/00 .................................... $ 1,000 991
Falcon Asset Securitization Corp.
6.55% due 07/03/00 .................................... 1,500 1,491
Sand Dollar Funding
6.62% due 07/11/00 .................................... 1,225 1,223
---------
3,705
Food, Beverage and Tobacco - 1.6%
Anheuser Busch Cos., Inc.
6.8% due 07/03/00 ..................................... 1,554 1,553
</TABLE>
111
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - CONTINUED
Food, Beverage and Tobacco - Continued
H.J. Heinz Co.
6.55% due 07/20/00 ..................... $ 1,000 $ 997
--------
2,550
--------
TOTAL COMMERCIAL PAPER- 3.9% 6,255
--------- --------
TOTAL INVESTMENTS- 99.3% 157,810
Cash and Receivables, less payables- 0.7% 1,077
--------- --------
NET ASSETS- 100.0% 158,887
========= ========
ADR - American Depository Receipt
* Non-income producing security.
See notes to financial statements.
112
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.8%
Boeing Co. .................................. 1,500 $ 63
General Dynamics Corp. ...................... 300 16
Honeywell International, Inc. ............... 400 13
Northrop Grumman Corp. ...................... 1,100 73
United Technologies Corp. ................... 300 18
--------
183
Auto and Truck Parts - 2.2%
Cummins Engine Company, Inc. ................ 400 11
General Motors Corp. ........................ 2,200 128
General Motors Corp. - Cl. H ................ 400 35
Johnson Controls, Inc. ...................... 500 25
Navistar International Corp., Inc. - Cl. B .. 500 15
TRW, Inc. ................................... 200 9
Visteon Corp. * ............................. 223 3
--------
226
Automobile - 1.1%
Delphi Automotive Systems Corp. ............. 2,100 30
Ford Motor Co. .............................. 1,700 73
Hertz Corp. - Cl. A ......................... 200 6
--------
109
Banks - 9.8%
Bank of America Corp. ....................... 3,900 168
Bank of New York Co., Inc. .................. 800 37
Bank One Corp. .............................. 300 8
BB&T Corporation ............................ 300 7
Chase Manhattan Corp. ....................... 3,300 152
Comerica, Inc. .............................. 300 14
Cullen/Frost Bankers, Inc. .................. 200 5
Fifth Third Bancorp ......................... 100 6
First Security Corp. ........................ 1,200 16
First Union Corp. ........................... 300 7
Firstar Corp. ............................... 900 19
FleetBoston Financial Corp. ................. 3,676 125
Golden West Financial Corp. ................. 2,100 86
J.P. Morgan & Co., Inc. ..................... 900 99
PNC Bank Corp. .............................. 1,000 47
Popular, Inc. ............................... 500 10
SouthTrust Corp. ............................ 200 5
Suntrust Banks, Inc. ........................ 800 37
U.S. Bancorp ................................ 400 8
UnionBanCal Corp. ........................... 1,200 22
Washington Mutual, Inc. ..................... 500 14
Wells Fargo & Co. ........................... 3,200 124
--------
1,016
Brokerage and Investment Management - 2.2%
Lehman Brothers Holdings, Inc. .............. 400 38
Merrill Lynch & Co., Inc. ................... 300 35
Morgan Stanley, Dean Witter, Discover & Co. . 1,900 158
--------
231
Business Services - 0.7%
Comdisco, Inc. .............................. 1,500 33
Interim Services, Inc. ...................... 500 9
Manpower, Inc. .............................. 400 13
Robert Half International, Inc. ............. 600 17
--------
72
Chemicals - 2.4%
Air Products & Chemicals, Inc. .............. 700 21
Cabot Corp. ................................. 300 8
Dow Chemical Co. ............................ 3,600 109
E.I. du Pont de Nemours & Co. ............... 700 31
Praxair, Inc. ............................... 1,700 64
Rohm & Haas Co. ............................. 400 14
--------
247
Commercial Services - 0.1%
Cendant Corp. * ............................. 400 6
Computer Equipment - 1.7%
3Com Corp. * ................................ 200 12
Apple Computer, Inc. * ...................... 1,000 52
Hewlett-Packard Co. ......................... 400 50
International Business Machines Corp ........ 100 11
Network Appliance, Inc. * ................... 200 16
SanDisk Corp. * ............................. 100 6
VERITAS Software Corp. * .................... 250 28
--------
175
Computer Software and Services - 1.3%
Cabletron Systems, Inc. * ................... 600 15
DST Systems, Inc. * ......................... 200 15
Electronic Data Systems Corp. ............... 500 21
First Data Corp. ............................ 500 25
Fiserv, Inc. ................................ 200 9
Mercury Interactive Corp. * ................. 100 10
Network Associates, Inc. .................... 100 2
Oracle Corp. * .............................. 300 25
Sun Microsystems, Inc. * .................... 100 9
Symantec Corp. * ............................ 100 5
--------
136
Construction - 0.4%
Lafarge Corp. ............................... 400 8
Southdown, Inc. ............................. 200 12
USG Corp. * ................................. 800 24
--------
44
Consumer - Miscellaneous - 0.5%
Parker-Hannifin Corp. ....................... 700 24
Sherwin-Williams Co. ........................ 400 9
Unilever NV - NY Shares ..................... 400 17
--------
50
Containers - 0.1%
Bemis Co., Inc. ............................. 300 10
113
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Cosmetics and Personal Care Products - 0.1%
Alberto-Culver Co. - Cl. B .................... 300 $ 9
Diversified Operations - 0.9%
Minnesota Mining & Manufacturing Co ........... 700 58
PPG Industries, Inc. .......................... 600 26
Textron, Inc. ................................. 200 11
--------
95
Electric Power - 3.2%
Ameren Corp. .................................. 500 17
Calpine Corp. * ............................... 600 39
Consolidated Edison, Inc. ..................... 200 6
Constellation Energy Group .................... 1,600 52
Dominion Resources, Inc. ...................... 221 10
DTE Energy Co. ................................ 500 15
Duke Energy Co. ............................... 1,100 62
Energy East Corp. ............................. 1,200 23
Entergy Corp. ................................. 800 22
Firstenergy Corp. ............................. 400 9
Public Services Enterprise Group, Inc. ........ 1,600 55
Southern Co. .................................. 1,100 26
--------
336
Electrical Equipment - 1.5%
American Power Conversion ..................... 300 12
Emerson Electric Co. .......................... 300 18
Molex, Inc. ................................... 200 10
TXU Corp. ..................................... 1,400 41
Unicom Corp. .................................. 2,000 78
--------
159
Electronic Products and Services - 1.8%
Advanced Micro Devices, Inc. * ................ 400 31
Analog Devices, Inc. * ........................ 100 8
Arrow Electronics, Inc. * ..................... 400 12
Atmel Corp. * ................................. 100 4
AVX Corp. ..................................... 1,000 23
Cree, Inc. * .................................. 100 13
LSI Logic Corp. * ............................. 200 11
Motorola, Inc. ................................ 600 17
National Semiconductor Corp. * ................ 300 17
Rockwell International Corp. * ................ 300 9
Texas Instruments, Inc. ....................... 200 14
Vishay Intertechnology, Inc. * ................ 600 23
--------
182
Energy - Alternative Source - 0.9%
Dynegy, Inc. - Cl.A ........................... 1,300 89
Engineering and Construction - 0.2%
Fluor Corp. ................................... 600 19
Financial Services - 5.2%
American Express Co. .......................... 600 31
Citigroup, Inc. ............................... 7,800 470
Donaldson, Lufkin & Jenrette, Inc. ............ 200 9
Mellon Financial Corp. ........................ 200 7
Providian Financial Corp. * ................... 200 18
--------
535
Food, Beverage and Tobacco - 3.7%
Adolph Coors Co. - Cl. B ...................... 200 12
ConAgra, Inc. ................................. 700 13
Hormel Foods Corp. ............................ 200 3
IBP, Inc. ..................................... 1,600 25
Keebler Foods Co. ............................. 300 11
McCormick & Co., Inc. ......................... 500 16
Nabisco Group Holdings Corp. .................. 2,900 75
Nabisco Holdings Corp. - Cl. A ................ 1,600 84
Pepsi Bottling Group, Inc. .................... 700 20
Philip Morris Cos., Inc. ...................... 1,300 35
Ralston-Ralston Purina Group .................. 1,700 34
Seagram Co., Ltd. ............................. 200 12
Starbucks Corp. * ............................. 400 15
Suiza Foods Corp. * ........................... 200 10
Tyson Foods, Inc. - Cl. A ..................... 800 7
UST, Inc. ..................................... 1,000 15
--------
387
Health Care Products - 4.0%
Abbott Laboratories ........................... 500 22
Allergan, Inc. ................................ 400 30
Alpharma, Inc. - Cl. A ........................ 1,100 68
Andrx Corp. * ................................. 200 13
Bausch & Lomb, Inc. ........................... 100 8
Baxter International, Inc. .................... 400 28
Chiron Corp. * ................................ 200 10
Genetech, Inc. * .............................. 100 17
IVAX Corp. .................................... 1,100 46
Jones Pharma, Inc. ............................ 500 20
MedImmune, Inc. * ............................. 300 22
Merck & Co., Inc. ............................. 200 15
Millennium Pharmaceuticals, Inc. * ............ 100 11
Pfizer, Inc. .................................. 600 29
Pharmacia Corp. ............................... 752 39
UnitedHealth Group, Inc. ...................... 400 34
--------
412
Health Care Services - 0.2%
HCA-The Healthcare Corporation ................ 600 18
Household Appliances / Furnishings - 0.4%
Springs Industries, Inc. - Cl. A .............. 100 3
Whirlpool Corp. ............................... 900 42
--------
45
Housing - 0.2%
American Standard Cos., Inc. * ................ 400 17
Insurance - 8.2%
AFLAC, Inc. ................................... 400 18
Allstate Corp. ................................ 2,100 47
114
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Insurance - Continued
Ambac Financial Group, Inc. .......................... 300 $ 16
American General Corp. ............................... 1,000 61
American International Group, Inc. ................... 1,600 188
American National Insurance Co. ...................... 400 20
AXA Financial, Inc. .................................. 1,400 48
Cigna Corp. .......................................... 1,200 112
Cincinnati Financial Corp. ........................... 500 16
Conseco, Inc. ........................................ 300 3
Hartford Financial Services Group, Inc. .............. 600 33
Jefferson-Pilot Corp. ................................ 100 6
Lincoln National Corp. ............................... 500 18
Loews Corp. .......................................... 1,300 78
Marsh & McLennan Cos., Inc. .......................... 600 63
MGIC Investment Corp. ................................ 900 41
Nationwide Financial Services - Cl. A ................ 300 10
The PMI Group, Inc. .................................. 1,500 71
--------
849
Leisure and Recreation - 0.8%
Brunswick Corp. ...................................... 1,500 25
Eastman Kodak Co. .................................... 1,000 59
--------
84
Machinery - 0.6%
FMC Corp. * .......................................... 300 18
Ingersoll-Rand Co. ................................... 300 12
Tecumseh Products Co. - Cl. A ........................ 900 34
--------
64
Media - Publishing - 1.2%
AT&T Corp. - Liberty Media Group - Cl. A * ........... 1,800 44
Dow Jones & Co., Inc. ................................ 200 15
Gannett Co., Inc. .................................... 100 6
Knight-Ridder, Inc. .................................. 400 21
New York Times Co. - Cl. A ........................... 1,000 39
--------
125
Media - TV / Radio - 3.6%
Fox Entertainment Group, Inc. - Cl. A * .............. 700 21
Infinity Broadcasting Corp. - Cl A * ................. 1,900 69
McGraw-Hill Cos., Inc. ............................... 200 11
The Walt Disney Co. .................................. 5,300 206
TV Guide, Inc. - Cl. A * ............................. 300 10
USA Networks, Inc. * ................................. 200 5
Viacom, Inc. - Cl. B * ............................... 717 49
--------
371
Metals and Mining - 0.3%
Alcan Aluminum, Ltd. ................................. 500 15
Alcoa, Inc. .......................................... 612 18
--------
33
Natural Gas Distribution - 0.8%
Enron Corp. .......................................... 1,200 78
Oil - 0.9%
Conoco, Inc. - Cl. B ................................. 2,300 56
Royal Dutch Petroleum Co. - NY Shares ................ 400 25
Tosco Corp. .......................................... 500 14
--------
95
Oil - Equipment and Services - 0.2%
BJ Services Co. * .................................... 400 25
Oil and Natural Gas Exploration and Production - 9.1%
Amerada Hess Corp. ................................... 1,300 80
Apache Corp. ......................................... 800 47
Chevron Corp. ........................................ 1,900 161
Coastal Corp. ........................................ 100 6
Exxon Mobil Corp. .................................... 5,852 460
Helmerich & Payne, Inc. .............................. 300 11
Kerr-McGee Corp. ..................................... 800 47
Murphy Oil Corp. ..................................... 300 18
Noble Affiliates, Inc. ............................... 1,100 41
Noble Drilling Corp. * ............................... 300 12
Occidental Petroleum Corp. ........................... 1,700 36
USX-Marathon Group ................................... 1,000 25
--------
944
Paper and Forest Products - 0.8%
Georgia-Pacific Corp. ................................ 900 24
International Paper Co. .............................. 400 12
Kimberly-Clark Corp. ................................. 600 34
Westvaco Corp. ....................................... 200 5
Willamette Industries, Inc. .......................... 200 5
--------
80
Personal and Commercial Lending - 0.1%
Household International, Inc. ........................ 200 8
Pollution Control - 0.3%
Republic Services, Inc. - Cl. A ...................... 2,000 32
Precious Metals/Gems/Stones - 0.2%
Freeport-McMoRan Copper & Gold, Inc. -
Cl. B ................................................ 2,200 20
Real Estate Investment Trust - 1.1%
Equity Office Properties Trust ....................... 1,400 39
Equity Residential Properties Trust .................. 900 41
Prologis Trust ....................................... 700 15
Simon Property Group, Inc. ........................... 400 9
Spieker Properties, Inc. ............................. 200 9
--------
113
Retail - Department Stores - 1.1%
Barnes & Noble, Inc. * ............................... 500 11
Circuit City Stores, Inc. ............................ 100 3
Federated Department Stores, Inc. * .................. 900 30
Intimate Brands, Inc. ................................ 400 8
Limited, Inc. ........................................ 600 13
Sears, Roebuck & Co. ................................. 600 20
115
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP VALUE CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Retail - Department Stores - Continued
Tiffany & Co. ............................. 200 $ 14
Zale Corp. * .............................. 300 11
--------
110
Retail - Food - 0.7%
Albertson's, Inc. ......................... 300 10
Brinker International, Inc. * ............. 900 26
Darden Restaurants, Inc. .................. 500 8
McDonald's Corp. .......................... 100 3
Tricon Global Restaurants, Inc. * ......... 900 26
--------
73
Shoe and Apparel Manufacturing - 0.1%
Liz Claiborne, Inc. ....................... 200 7
Steel - 0.3%
Nucor Corp. ............................... 900 30
Telecommunication Equipment - 0.8%
Advanced Fibre Communications, Inc. * ..... 100 4
Nortel Networks Corp. ..................... 628 43
QUALCOMM, Inc. * .......................... 100 6
Scientific-Atlanta, Inc. .................. 200 15
Terayon Communication Systems, Inc. * ..... 200 13
--------
81
Telecommunication Services - 2.0%
Allegiance Telecom, Inc. * ................ 300 19
BCE, Inc. ................................. 3,200 76
Citizens Communications Co. ............... 900 16
MediaOne Group, Inc. ...................... 800 53
United States Cellular Corp. * ............ 100 7
WorldCom, Inc. * .......................... 900 41
--------
212
Telephone - 9.7%
AT&T Corp. ................................ 5,900 187
Bell Atlantic Corp. ....................... 3,600 183
BellSouth Corp. ........................... 4,700 200
GTE Corp. ................................. 1,700 106
NEXTLINK Communications, Inc. * ........... 200 8
SBC Communications, Inc. .................. 5,137 222
Sprint Corp. .............................. 1,500 76
Telephone and Data Systems, Inc. .......... 200 20
--------
1,002
Transportation Services - 1.6%
AMR Corp. * ............................... 700 19
Burlington Northern Santa Fe .............. 500 11
Canadian National Railway Co. ............. 1,800 53
Delta Air Lines, Inc. ..................... 900 45
Kansas City Southern Industries, Inc. ..... 200 18
UAL Corp. ................................. 300 17
--------
163
U.S. Government Agencies - 0.7%
Federal National Mortgage Assoc. .......... 1,300 68
--------
TOTAL COMMON STOCK- 91.8% 9,475
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.8%
Investment in joint repurchase agreement with
Goldman Sachs & Co. dated 06/30/00,
6.866% due 07/03/00 (Secured by various
U.S Treasury Obligations and U.S.
Government Agency Bonds Bonds) ........... $ 600 600
-------- --------
TOTAL INVESTMENTS- 97.6% 10,075
Cash and Receivables, less payables- 2.4% 246
-------- --------
NET ASSETS- 100.0% 10,321
======== ========
* Non-income producing security.
See notes to financial statements.
116
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
AMERICAN LEADERS LARGE CAP VALUE
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS
U.S. Governmental - 98.6%
U.S. Treasury
5.68% due 09/28/00 ................. $ 5,000 $ 4,930
-------- --------
TOTAL INVESTMENTS- 98.6% 4,930
Cash and Receivables, less payables- 1.4% 71
-------- --------
NET ASSETS- 100.0% 5,001
======== ========
See notes to financial statements.
117
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.4%
Honeywell International, Inc. ................... 1,000 $ 34
United Technologies Corp. ....................... 1,400 82
-------
116
Auto and Truck Parts - 1.3%
General Motors Corp. ............................ 376 22
General Motors Corp. - Cl. H .................... 632 55
TRW, Inc. ....................................... 600 26
Visteon Corp. * ................................. 301 4
-------
107
Automobile - 1.2%
Ford Motor Co. .................................. 2,300 99
Banks - 9.1%
Bank One Corp. .................................. 2,400 64
KeyCorp ......................................... 5,500 97
Mercantile Bankshares Corp. ..................... 3,700 110
Pacific Century Financial Corp. ................. 1,200 17
U.S. Bancorp .................................... 6,200 119
UnionBanCal Corp. ............................... 2,000 37
Wachovia Corp. .................................. 3,500 190
Washington Mutual, Inc. ......................... 4,800 139
-------
773
Brokerage and Investment Management - 4.2%
Goldman Sachs Group, Inc. ....................... 700 66
Merrill Lynch & Co., Inc. ....................... 2,500 288
-------
354
Chemicals - 1.5%
Air Products & Chemicals, Inc. .................. 900 28
E.I. du Pont de Nemours & Co. ................... 1,600 70
Great Lakes Chemical Corp. ...................... 900 28
-------
126
Commercial Services - 0.6%
Convergys Corp. * ............................... 1,000 52
Computer Equipment - 3.7%
3Com Corp. * .................................... 2,500 144
Adaptec, Inc. * ................................. 1,200 27
International Business Machines Corp. ........... 700 77
Quantum Corp. - Hard Disk Drive * ............... 5,800 64
-------
312
Computer Software and Services - 1.3%
Affiliated Computer Services, Inc. -
Cl. A * ........................................ 500 17
Cabletron Systems, Inc. * ....................... 1,000 25
First Data Corp. ................................ 1,400 69
-------
111
Construction - 0.2%
Vulcan Materials Co. ............................ 500 21
Consumer - Miscellaneous - 0.4%
Clorox Co. ...................................... 800 36
Containers - 0.2%
Smurfit-Stone Container Corp. * ................. 1,600 21
Cosmetics and Personal Care Products - 1.3%
Procter & Gamble Co. ............................ 1,900 109
Diversified Operations - 3.4%
Danaher Corp. ................................... 300 15
Eaton Corp. ..................................... 800 54
El Paso Energy Corp. ............................ 1,600 81
Illinois Tool Works, Inc. ....................... 1,400 80
Minnesota Mining & Manufacturing Co. ............ 400 33
PPG Industries, Inc. ............................ 500 22
-------
285
Electric Power - 3.5%
Calpine Corp. * ................................. 1,000 66
DQE, Inc. ....................................... 2,100 83
Duke Energy Co. ................................. 500 28
Endesa S.A. - ADR ............................... 1,500 29
Montana Power Co. ............................... 600 21
Pinnacle West Capital Corp. ..................... 2,100 71
-------
298
Electrical Equipment - 1.5%
Emerson Electric Co. ............................ 900 54
Unicom Corp. .................................... 1,800 70
-------
124
Electronic Products and Services - 1.2%
Atmel Corp. * ................................... 1,800 66
Novellus Systems, Inc. * ........................ 600 34
-------
100
Engineering and Construction - 0.1%
Fluor Corp. ..................................... 300 9
Financial Services - 5.6%
Associates First Capital Corp. -
Cl. A * .................................. 5,300 118
Citigroup, Inc. ................................. 5,900 356
-------
474
Food, Beverage and Tobacco - 4.0%
McCormick & Co., Inc. ........................... 100 3
Philip Morris Cos., Inc. ........................ 5,100 136
R.J. Reynolds Tobacco Holdings, Inc.* ........... 1,900 53
Sara Lee Corp. .................................. 7,600 147
-------
339
Health Care Products - 4.6%
Abbott Laboratories ............................. 1,200 53
American Home Products Corp. .................... 1,000 59
118
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Health Care Products - Continued
Baxter International, Inc. ........................... 700 $ 49
Cardinal Health, Inc. ................................ 400 30
Gilead Sciences, Inc. * .............................. 500 36
Mylan Laboratories, Inc. ............................. 700 13
Pharmacia Corp. ...................................... 2,947 152
------
392
Insurance - 9.0%
American International Group, Inc. ................... 2,000 235
Cigna Corp. .......................................... 1,600 150
Marsh & McLennan Cos., Inc. .......................... 1,900 198
MBIA, Inc. ........................................... 2,200 106
XL Capital, Ltd. - Cl. A ............................. 1,400 76
------
765
Leisure and Recreation - 0.8%
Eastman Kodak Co. .................................... 600 35
Starwood Hotels & Resorts Worldwide,
Inc ................................................. 1,100 36
------
71
Machinery - 1.2%
Caterpillar, Inc. .................................... 1,000 34
Ingersoll-Rand Co. ................................... 900 36
Thermo Electron Corp. * .............................. 1,600 34
------
104
Media - Publishing - 1.5%
AT&T Corp. - Liberty Media Group - Cl A * ............ 3,700 90
Gannett Co., Inc. .................................... 600 36
------
126
Media - TV / Radio - 2.1%
E.W. Scripps Co. - Cl. A ............................. 800 39
The Walt Disney Co. .................................. 1,700 66
Viacom, Inc. - Cl. B * ............................... 1,100 75
------
180
Metals and Mining - 0.8%
Alcoa, Inc. .......................................... 2,400 70
Natural Gas Distribution - 1.4%
Enron Corp. .......................................... 1,800 116
Oil - 2.6%
Conoco, Inc. - Cl. B ................................. 3,300 81
Suncor Energy, Inc. .................................. 5,800 135
------
216
Oil and Natural Gas Exploration and Production - 6.0%
Ashland, Inc. ........................................ 1,200 42
Exxon Mobil Corp. .................................... 4,450 350
Ultramar Diamond Shamrock Corp. ...................... 4,600 114
------
506
Paper and Forest Products - 1.6%
Bowater, Inc. ........................................ 900 40
Kimberly-Clark Corp. ................................. 700 40
Temple-Inland, Inc. .................................. 400 17
Weyerhaeuser Co. ..................................... 800 34
------
131
Pollution Control - 0.2%
Republic Services, Inc. - Cl. A ...................... 800 13
Real Estate Investment Trust - 0.8%
Equity Office Properties Trust ....................... 1,100 30
Kimco Realty Corp. ................................... 1,000 41
------
71
Retail - Department Stores - 2.5%
Intimate Brands, Inc. ................................ 6,700 132
Target Corp. ......................................... 1,400 81
------
213
Retail - Food - 2.0%
McDonald's Corp. ..................................... 1,900 62
Safeway, Inc. * ...................................... 2,300 104
------
166
Telecommunication Equipment - 0.5%
American Tower Corp. - Cl. A ......................... 1,000 42
Telecommunication Services - 2.8%
Clear Channel Communications, Inc. * ................. 300 22
EchoStar Communications Corp. - Cl. A * ............. 900 30
Nextel Partners, Inc. - Cl. A * ...................... 1,200 39
Sprint PCS (PCS Group) * ............................. 700 42
WorldCom, Inc. * ..................................... 2,300 106
------
239
Telephone - 8.5%
AT&T Corp. ........................................... 4,300 136
Bell Atlantic Corp. .................................. 5,700 290
SBC Communications, Inc. ............................. 3,595 155
Sprint Corp. ......................................... 1,700 87
U.S. West, Inc. ...................................... 600 51
------
719
Transportation Services - 1.0%
Canadian National Railway Co. ........................ 600 17
Continental Airlines, Inc. - Cl. B * ................. 300 14
SkyWest, Inc. ........................................ 400 15
Southwest Airlines Co. ............................... 1,200 23
U.S. Airways Group, Inc. * ........................... 400 16
------
85
119
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE/MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
U.S. Government Agencies - 1.1%
Federal National Mortgage Assoc ....... 1,700 $ 89
--------
TOTAL COMMON STOCK- 96.7% 8,180
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 5.4%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ................... $ 455 455
-------- --------
TOTAL INVESTMENTS- 102.1% 8,635
Payables, less cash and receivables (2.1)% (174)
-------- --------
NET ASSETS- 100.0% 8,461
======== ========
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
120
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Automobile - 1.2%
DaimlerChrysler NA Holding Co.
6.534% due 07/06/00 ....................... $ 5,000 $ 5,000
Banks - 6.6%
Bankers Trust Corp.
6.872% due 03/16/01 ....................... 1,000 1,001
Fleet National Bank of Rhode Island
7.06% due 01/29/01 ........................ 1,000 1,001
FleetBoston Financial Corp. - Sr. Notes
6.768% due 05/11/01 ....................... 10,000 10,006
Key Bank
6.551% due 03/01/01 ....................... 5,000 4,998
PNC Bank NA - Notes
6.585% due 07/12/00 ....................... 8,500 8,500
--------
25,506
Brokerage and Investment Management - 4.8%
Goldman Sachs Group, Inc.
6.682% due 08/07/00 ....................... 7,000 7,000
Goldman Sachs Group, Inc. - Notes
6.34% due 07/24/00 ........................ 2,000 2,000
6.435% due 07/31/00 ....................... 2,000 2,000
Merrill Lynch & Co., Inc.
6.521% due 10/10/00 ....................... 4,000 4,001
7.318% due 11/20/00 ....................... 5,000 5,011
Merrill Lynch & Co., Inc. - Notes
6.958% due 03/05/01 ....................... 2,000 2,001
--------
22,213
Commercial Services - 1.2%
Xerox Credit Corp. - Notes
6.632% due 12/08/00 ....................... 5,000 4,999
Computer Equipment - 0.5%
International Business Machines
5.95% due 08/17/00 ........................ 2,000 1,999
Diversified Operations - 1.2%
Ciesco L.P.
6.668% due 08/14/00 ....................... 5,000 5,000
Financial Services - 2.5%
Chrysler Financial Co. LLC
6.52% due 07/28/00 ........................ 5,700 5,700
Merrill Lynch & Co., Inc. - Notes
6.58% due 01/12/01 ........................ 5,000 5,009
--------
10,709
Personal and Commercial Lending - 8.5%
American Honda Finance Corp. - Notes
6.271% due 01/16/01 ....................... 5,000 4,999
American Honda Finance Corp. Mountain
6.64% due 02/16/01 ........................ 5,000 5,000
Ford Motor Credit Co. - Notes
6.77% due 10/02/00 ........................ 7,000 6,998
General Motors Acceptance Corp. - Notes
6.83% due 09/01/00 ........................ 6,000 5,999
7.118% due 11/20/00 ....................... 5,000 5,005
Household Finance Corp.
6.81% due 04/24/01 ........................ 5,000 5,018
Household Finance Corp. - Sr. Notes
6.96% due 12/01/00 ........................ 2,500 2,501
--------
35,520
Telecommunication Services - 1.5%
SBC Communications Capital Corp.
6.325% due 05/01/01 ....................... 5,000 5,000
TCI Communications, Inc. - Sr. Notes
7.361% due 03/12/01 ....................... 1,500 1,506
--------
6,506
--------
TOTAL PUBLICLY-TRADED BONDS- 28.0% 117,252
COMMERCIAL PAPER
Aerospace and Defense - 4.7%
British Aerospace
6.51% due 07/10/00 ........................ 4,000 3,995
6.55% due 07/17/00 ........................ 8,000 7,980
6.6% due 09/05/00 ......................... 7,588 7,499
--------
19,474
Automobile - 1.9%
American Honda Finance Corp.
6.58% due 09/07/00 ........................ 8,000 7,903
Banks - 5.2%
Bank of Nova Scotia
5.94% due 10/02/00 ........................ 7,000 6,995
Den Danske Bank
6.35% due 07/31/00 ........................ 4,075 4,055
6.51% due 07/10/00 ........................ 3,875 3,870
Deutsche Bank AG
6.75% due 08/21/00 ........................ 7,000 7,000
--------
21,920
Brokerage and Investment Management - 3.2%
Merrill Lynch & Co., Inc.
6.56% due 07/12/00 ........................ 3,507 3,501
Salomon Smith Barney Holdings
6.59% due 07/14/00 ........................ 4,852 4,842
Salomon Smith Barney Holdings, Inc.
6.52% due 07/03/00 ........................ 5,000 5,000
--------
13,343
Chemicals - 1.7%
E.I. du Pont de Nemours & Co.
6.55% due 07/20/00 ........................ 7,000 6,978
121
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
COMMERCIAL PAPER - CONTINUED
Construction - 1.9%
Compagnie de St. Gobain
6.6% due 07/17/00 ......................... $ 1,862 $ 1,857
6.65% due 09/20/00 ........................ 6,300 6,208
--------
8,065
Diversified Operations - 2.4%
Ciesco L.P.
6.58% due 07/24/00 ........................ 10,000 9,962
Electronic Products and Services - 1.7%
IBM Credit Corp.
6.47% due 07/14/00 ........................ 7,000 6,986
Financial Services - 41.2%
Alpine Securitization Corp.
6.55% due 07/07/00 ........................ 7,000 6,995
6.6% due 07/07/00 ......................... 1,250 1,249
Asset Securitization Cooperative Corp.
6.52% due 07/27/00 ........................ 7,000 6,970
6.53% due 07/26/00 ........................ 9,320 9,281
6.53% due 07/27/00 ........................ 1,548 1,541
Barclays US Funding
6.78% due 07/05/00 ........................ 9,534 9,530
Cargill Global Funding plc - 144A (a)
6.47% due 07/11/00 ........................ 9,796 9,782
Centric Capital Corp.
6.6% due 07/25/00 ......................... 5,000 4,980
Corporate Asset Funding Co.
6.56% due 08/07/00 ........................ 9,686 9,624
6.59% due 07/13/00 ........................ 8,000 7,985
Delaware Funding Corp.
6.6% due 07/18/00 ......................... 8,000 7,978
Eagle Funding Capital Corp.
6.7% due 07/05/00 ......................... 3,501 3,500
Enterprise Funding Corp.
6.58% due 07/17/00 ........................ 4,186 4,175
6.6% due 07/19/00 ......................... 8,287 8,263
Falcon Asset Securitization Corp.
6.55% due 07/03/00 ........................ 5,915 5,915
6.58% due 08/03/00 ........................ 3,679 3,658
6.65% due 08/22/00 ........................ 1,428 1,415
Fleet Funding Corp.
6.61% due 07/21/00 ........................ 4,585 4,570
Greenwich Funding Corp.
6.62% due 08/04/00 ........................ 7,000 6,959
6.65% due 07/21/00 ........................ 2,095 2,088
Lexington Parker Capital Corp.
6.55% due 07/18/00 ........................ 5,458 5,443
6.6% due 07/17/00 ......................... 5,000 4,987
6.7% due 07/18/00 ......................... 2,595 2,588
Monte Rosa Capital Corp.
6.55% due 07/25/00 ........................ 6,970 6,942
6.58% due 08/02/00 ........................ 7,000 6,962
Old Line Funding Corp.
6.59% due 08/01/00 ........................ 10,000 9,947
Old Line Funding, Corp.
6.55% due 07/21/00 ........................ 5,000 4,984
Sigma Finance, Inc.
6.62% due 09/07/00 ........................ 14,011 13,840
--------
172,151
Food, Beverage and Tobacco - 5.5%
Coca-Cola Co.
6.55% due 07/10/00 ........................ 5,981 5,973
Coca-Cola Enterprises, Inc.
6.51% due 07/05/00 ........................ 12,382 12,378
Philip Morris Cos., Inc.
6.75% due 07/07/00 ........................ 4,784 4,780
--------
23,131
Personal and Commercial Lending - 1.0%
Toyota Motor Credit Co.
6.56% due 07/06/00 ........................ 4,100 4,098
Telephone - 1.2%
American Telephone & Telegraph Co.
6.24% due 07/13/00 ........................ 5,000 5,001
--------
TOTAL COMMERCIAL PAPER- 71.6% 299,012
------- --------
TOTAL INVESTMENTS- 99.6% 416,264
Receivables, less Cash and payables- 0.4% 1,485
------- --------
NET ASSETS- 100.0% 417,749
======= ========
(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, 2000, securities aggregated $9,782 or
2.35% of net assets of the Portfolio.
See notes to financial statements.
122
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.9%
General Dynamics Corp. ..................... 35,400 $1,850
Auto and Truck Parts - 2.3%
General Motors Corp. - Cl. H ............... 9,000 790
Lear Corp. * ............................... 70,000 1,400
-------
2,190
Banks - 2.2%
M & T Bank Corp. ........................... 2,200 990
Valley National Bancorp .................... 48,405 1,177
-------
2,167
Brokerage and Investment Management - 2.4%
Bear Stearns Cos., Inc. .................... 18,200 758
Charles River Laboratories * ............... 27,500 610
Franklin Resources, Inc. ................... 31,700 963
-------
2,331
Business Services - 2.3%
Comdisco, Inc. ............................. 35,300 788
Dun & Bradstreet Corp. ..................... 49,400 1,414
-------
2,202
Chemicals - 1.8%
Engelhard Corp. ............................ 44,500 759
Praxair, Inc. .............................. 27,000 1,011
-------
1,770
Commercial Services - 2.4%
Choicepoint, Inc. .......................... 26,400 1,175
Iron Mountain, Inc. * ...................... 33,300 1,132
-------
2,307
Computer Equipment - 1.6%
Apple Computer, Inc. * ..................... 12,500 655
Gateway, Inc. * ............................ 15,800 896
StorageNetworks, Inc. * .................... 200 18
-------
1,569
Computer Software and Services - 3.7%
Ceridian Corp. * ........................... 47,500 1,143
Compuware Corp. * .......................... 49,100 509
Fiserv, Inc. ............................... 12,500 541
Intuit, Inc. * ............................. 15,300 633
SunGard Data Systems, Inc. ................. 24,300 753
-------
3,579
Containers - 1.0%
Sealed Air Corp. * ......................... 18,500 969
Diversified Operations - 3.8%
Crane Co. .................................. 36,500 887
Danaher Corp. .............................. 19,900 984
Eaton Corp. ................................ 14,800 992
Pall Corp. ................................. 43,900 812
-------
3,675
Electric Power - 2.1%
AES Corp. * ................................ 45,000 2,053
Electrical Equipment - 1.6%
Unicom Corp. ............................... 41,000 1,586
Electronic Products and Services - 1.4%
Flextronics International Ltd. ............. 10,100 694
Waters Corp. * ............................. 5,200 649
-------
1,343
Energy - Alternative Source - 2.4%
Dynegy, Inc. - Cl. A ....................... 19,149 1,308
Energizer Holdings , Inc. .................. 54,000 986
-------
2,294
Financial Services - 1.4%
Providian Financial Corp. * ................ 14,800 1,332
Food, Beverage and Tobacco - 2.5%
Hershey Foods Corp. ........................ 21,600 1,048
The Kroger Co. * ........................... 62,600 1,381
-------
2,429
Health Care Products - 4.4%
Becton, Dickinson & Co. .................... 28,300 812
C.R. Bard, Inc. ............................ 28,600 1,376
Genzyme Corp. (General Division) * ......... 34,600 2,057
-------
4,245
Health Care Services - 5.2%
HEALTHSOUTH Corp. * ........................ 130,400 937
St. Jude Medical, Inc. * ................... 20,600 945
Tenet Healthcare Corp. * ................... 71,900 1,941
Wellpoint Health Networks, Inc. * .......... 17,000 1,232
-------
5,055
Housing - 1.1%
American Standard Cos., Inc. * ............. 26,700 1,095
Insurance - 11.8%
Ace, Ltd. * ................................ 63,400 1,775
Ambac Financial Group, Inc. ................ 22,300 1,222
Aon Corp. .................................. 40,100 1,245
Metlife, Inc. .............................. 118,500 2,496
Nationwide Financial Services - Cl. A ...... 50,700 1,667
UnumProvident Corp. ........................ 62,600 1,256
XL Capital, Ltd. - Cl. A ................... 32,400 1,754
-------
11,415
Leisure and Recreation - 2.0%
Starwood Hotels & Resorts Worldwide, Inc. .. 58,200 1,895
Machinery - 3.2%
FMC Corp. * ................................ 22,400 1,299
SPX Corp. .................................. 14,600 1,766
-------
3,065
123
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Media - TV / Radio - 4.1%
A.H. Belo Corp. ............................. 111,500 $ 1,930
E.W. Scripps Co. - Cl. A .................... 29,500 1,453
Emmis Communications Corp. .................. 14,100 584
--------
3,967
Natural Gas Distribution - 0.5%
Williams Cos., Inc. ......................... 12,700 529
Oil - Equipment and Services - 1.3%
Anadarko Petroleum Corp. .................... 25,700 1,267
Oil and Natural Gas Exploration and Production - 7.8%
Apache Corp. ................................ 18,300 1,076
Coastal Corp. ............................... 20,200 1,230
Gemstar International Group, Ltd. * ......... 9,800 602
Kinder Morgan, Inc. ......................... 22,900 791
Noble Drilling Corp. * ...................... 14,800 610
Santa Fe International Corp. ................ 24,500 856
Transocean Sedco Forex, Inc. ................ 25,100 1,341
USX-Marathon Group. ......................... 42,600 1,068
--------
7,574
Paper and Forest Products - 0.7%
Bowater, Inc. ............................... 16,100 710
Personal and Commercial Lending - 3.5%
Countrywide Credit Industries, Inc. ......... 40,300 1,222
SLM Holding Corp. ........................... 56,500 2,115
--------
3,337
Precious Metals/Gems/Stones - 1.1%
Homestake Mining Co. ........................ 150,100 1,032
Real Estate Investment Trust - 4.5%
Boston Properties, Inc. ..................... 41,100 1,587
Spieker Properties, Inc. .................... 25,700 1,182
Vornado Realty Trust ........................ 45,600 1,585
--------
4,354
Real Estate Operations - 1.4%
IndyMac Mortgage Holdings, Inc. ............. 101,700 1,379
Retail - Department Stores - 3.1%
AnnTaylor Stores Corp. * .................... 13,100 434
Consolidated Stores Corp. * ................. 56,200 674
Insight Enterprises, Inc. * ................. 20,900 1,240
Tiffany & Co. ............................... 9,400 634
--------
2,982
Telecommunication Equipment - 1.4%
American Tower Corp. - Cl. A ................ 31,900 1,330
Exfo Electro-Optical Engineering, Inc. * .... 100 4
--------
1,334
Telecommunication Services - 1.2%
Loral Space & Communications, Ltd. * ........ 168,000 1,166
Transportation Services - 4.0%
Continental Airlines, Inc. - Cl. B * ........ 26,700 1,255
Kansas City Southern Industries, Inc. ....... 19,500 1,729
Southwest Airlines Co. ...................... 48,100 911
--------
3,895
--------
TOTAL COMMON STOCK- 99.1% 95,942
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 1.8%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ........................ $ 1,715 1,715
-------- --------
TOTAL INVESTMENTS- 100.9% 97,657
Payables, less cash and receivables- (0.9)% (844)
-------- --------
NET ASSETS- 100.0% 96,813
======== ========
* Non-income producing security.
See notes to financial statements.
124
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Automobile - 2.2%
United Rentals, Inc. * ..................... 235,700 $ 4,036
Banks - 2.1%
Mercantile Bankshares Corp. ................ 44,600 1,330
Westamerica Bancorporation ................. 45,100 1,178
Wilmington Trust Corp. ..................... 32,500 1,389
--------
3,897
Brokerage and Investment Management - 1.4%
Investment Technology Group, Inc. .......... 60,100 2,558
Business Services - 1.5%
American Management Systems, Inc. * ........ 86,700 2,846
Chemicals - 2.4%
MacDermid, Inc. ............................ 71,000 1,668
Minerals Technologies, Inc. ................ 62,000 2,852
--------
4,520
Commercial Services - 8.3%
ACNielson Corp. * .......................... 54,900 1,208
DeVry, Inc. * .............................. 87,200 2,305
G & K Services, Inc. - Cl. A ............... 134,400 3,368
Informix Corp. * ........................... 186,400 1,386
NOVA Corp. - Georgia * ..................... 93,800 2,621
Tetra Tech, Inc. * ......................... 55,300 1,265
TMP Worldwide, Inc. * ...................... 45,100 3,329
--------
15,482
Computer Equipment - 1.1%
Network Appliance, Inc. * .................. 11,700 942
The BISYS Group, Inc. * .................... 18,300 1,125
--------
2,067
Computer Software and Services - 20.8%
Acxiom Corp. * ............................. 84,400 2,300
Affiliated Computer Services, Inc. - Cl. A* 46,300 1,531
Black Box Corp. * .......................... 7,900 625
BroadVision, Inc. * ........................ 11,200 569
Cognos, Inc. * ............................. 35,800 1,481
Critical Path, Inc. * ...................... 14,400 840
DST Systems, Inc. * ........................ 43,000 3,273
Factset Research Systems, Inc. ............. 32,000 904
Fiserv, Inc. ............................... 54,000 2,335
IMS Health, Inc. ........................... 99,200 1,786
Intuit, Inc. * ............................. 28,800 1,192
Macromedia, Inc. * ......................... 25,500 2,466
Mercury Interactive Corp. * ................ 7,900 764
National Instruments Corp. * ............... 33,000 1,440
Phone.com, Inc. * .......................... 6,400 417
Rational Software Corp. * .................. 45,300 4,210
Shared Medical Systems Corp. ............... 39,600 2,888
SunGard Data Systems, Inc. ................. 96,400 2,988
Systems & Computer Technology Corp. * ...... 128,100 2,562
VeriSign, Inc. ............................. 4,730 835
Verity, Inc. * ............................. 71,200 2,706
Vignette Corp. * ........................... 11,500 598
--------
38,710
Consumer - Miscellaneous - 1.8%
Catalina Marketing Corp. * ................. 32,700 3,335
Containers - 2.4%
Bemis Co., Inc. ............................ 72,000 2,421
Sealed Air Corp. * ......................... 39,800 2,085
--------
4,506
Cosmetics and Personal Care Products - 0.6%
AptarGroup, Inc. ........................... 39,200 1,058
Electric Power - 2.8%
Calpine Corp. * ............................ 32,100 2,111
Montana Power Co. .......................... 90,200 3,185
--------
5,296
Electrical Equipment - 2.6%
Littelfuse, Inc. * ......................... 98,900 4,846
Electronic Products and Services - 10.1%
Burr-Brown Corp. * ......................... 27,400 2,375
Cypress Semiconductor Corp. * .............. 56,000 2,366
Dallas Semiconductor Corp. ................. 108,800 4,434
Lattice Semiconductor Corp. * .............. 39,800 2,751
Methode Electronics, Inc. - Cl. A .......... 43,300 1,672
Novellus Systems, Inc. * ................... 33,000 1,867
PMC-Sierra, Inc. * ......................... 5,500 977
Waters Corp. * ............................. 18,500 2,309
--------
18,751
Food, Beverage and Tobacco - 2.7%
Beringer Wine Estates Holdings * ........... 95,500 3,372
Pepsi Bottling Group, Inc. ................. 55,900 1,632
--------
5,004
Health Care Products - 8.2%
ALZA Corp. * ............................... 64,100 3,790
Becton, Dickinson & Co. .................... 48,000 1,377
Biomet, Inc. ............................... 84,000 3,229
Forest Laboratories, Inc. * ................ 16,400 1,656
Genzyme Corp. (General Division) * ......... 78,900 4,690
Haemonetics Corp. * ........................ 23,300 489
--------
15,231
Health Care Services - 1.8%
Covance, Inc. * ............................ 52,100 459
Idec Pharmaceuticals Corp. ................. 10,600 1,244
Trigon Healthcare, Inc. * .................. 31,300 1,614
--------
3,317
Household Appliances / Furnishings - 2.2%
Herman Miller, Inc. ........................ 157,400 4,073
125
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Insurance - 2.5%
Reinsurance Group of America ................. 155,740 $ 4,692
Leisure and Recreation - 1.5%
Speedway Motorsports, Inc. * ................. 125,500 2,887
Oil - 1.1%
Petro-Canada ................................. 109,600 2,089
Oil - Equipment and Services - 1.6%
Hanover Compressor Co. * ..................... 79,200 3,010
Oil and Natural Gas Exploration and Production - 1.0%
Murphy Oil Corp. ............................. 32,300 1,920
Pollution Control - 1.7%
Donaldson Co., Inc. .......................... 24,100 476
Ionics, Inc. * ............................... 88,900 2,723
--------
3,199
Retail - Department Stores - 3.3%
Bed Bath & Beyond, Inc. * .................... 37,700 1,367
Copper Mountain Networks, Inc. * ............. 17,300 1,524
Family Dollar Stores, Inc. ................... 162,000 3,169
--------
6,060
Retail - Food - 1.0%
Whole Foods Market, Inc. * ................... 45,700 1,888
Telecommunication Equipment - 5.7%
CIENA Corp. * ................................ 7,400 1,233
CommScope, Inc. * ............................ 63,100 2,587
Digital Microwave Corp. ...................... 74,200 2,829
Symbol Technologies, Inc. .................... 47,700 2,576
TriQuint Semiconductor, Inc. * ............... 9,700 928
Westell Technologies, Inc. Cl. A * ........... 31,000 465
--------
10,618
Telecommunication Services - 1.1%
Allegiance Telecom, Inc. * ................... 6,000 384
Broadwing, Inc. .............................. 21,000 545
McLeodUSA, Inc. - Cl. A * .................... 18,600 385
VoiceStream Wireless Corp. * ................. 5,600 651
--------
1,965
Transportation Services - 0.5%
EGL, Inc. * .................................. 28,700 883
--------
TOTAL COMMON STOCK- 96.0% 178,744
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 4.0%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ......................... $ 7,413 $ 7,413
-------- --------
TOTAL INVESTMENTS- 100.0% 186,157
Payables, less cash and receivables- 0.0% (10)
-------- --------
NET ASSETS- 100.0% 186,147
======== ========
* Non-income producing security.
See notes to financial statements.
126
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 1.1%
Lockheed Martin Corp.
7.25% due 05/15/06 ........................... $ 300 $ 291
Raytheon Co. - Notes
6.75% due 08/15/07 ........................... 200 186
United Technologies Corp. - Debs.
8.875% due 11/15/19 .......................... 50 56
--------
533
Auto and Truck Parts - 0.1%
Dana Corp. - Notes
7.0% due 03/15/28 ............................ 75 63
Automobile - 0.7%
DaimlerChrysler NA Holding Co.
6.9% due 09/01/04 ............................ 150 147
Delphi Automotive Systems Corp. - Debs.
7.125% due 05/01/29 .......................... 50 43
Hertz Corp. - Sr. Notes
8.25% due 06/01/05 ........................... 125 127
--------
317
Banks - 4.2%
Abbey National plc - Debs.
7.95% due 10/26/29 ........................... 100 99
African Development Bank - Sub. Notes
6.875% due 10/15/15 .......................... 35 33
Asian Development Bank - Bonds
5.5% due 04/23/04 ............................ 270 256
Bank One Corp. - Sr. Notes
5.625% due 02/17/04 .......................... 150 141
BankAmerica Corp. - Sub. Notes
6.5% due 03/15/06 ............................ 150 142
Chase Manhattan Corp. - Sub. Notes
7.125% due 02/01/07 .......................... 225 218
First Union Corp. - Sub. Notes
8.125% due 06/24/02 .......................... 230 232
Fleet Financial Group - Sub. Debs.
6.7% due 07/15/28 ............................ 75 63
Golden West Financial Corp. - Sub. Notes
6.7% due 07/01/02 ............................ 150 147
InterAmerican Development Bank - Debs.
8.5% due 03/15/11 ............................ 200 220
Korea Development Bank - Bonds
7.375% due 09/17/04 .......................... 120 117
National City Bank of Pennsylvania -
Sub. Notes
7.25% due 10/21/11 ........................... 50 47
Royal Bank of Scotland plc - Sub. Notes
6.4% due 04/01/09 ............................ 50 45
Wachovia Corp. - Sub. Notes
5.625% due 12/15/08 .......................... 75 65
Wells Fargo & Co. - Sub. Notes
6.875% due 04/01/06 .......................... 150 145
--------
1,970
Brokerage and Investment Management - 0.8%
Lehman Brothers Holdings, Inc. - Notes
8.5% due 05/01/07 ............................ 100 101
Merrill Lynch & Co., Inc. - Notes
8.0% due 06/01/07 ............................ 200 202
Morgan Stanley, Dean Witter, Discover & Co.
6.875% due 03/01/07 .......................... 100 94
--------
397
Business Services - 0.5%
Comdisco, Inc. - Notes
6.125% due 01/15/03 .......................... 150 141
Electronic Data Systems Corp.
7.125% due 10/15/09 .......................... 100 97
--------
238
Chemicals - 0.9%
ICI Wilmington, Inc. - Debs.
8.75% due 05/01/01 ........................... 300 302
Morton International, Inc. - Debs.
9.25% due 06/01/20 ........................... 40 46
Rohm & Haas Co. - Notes
7.4% due 07/15/09 ............................ 80 79
--------
427
Computer Equipment - 0.6%
Hewlett - Packard Co. - Notes
7.15% due 06/15/05 ........................... 200 200
International Business Machines Corp. - Debs.
7.0% due 10/30/25 ............................ 100 96
--------
296
Consumer - Miscellaneous - 0.2%
Fortune Brands, Inc. - Debs.
7.875% due 01/15/23 .......................... 100 99
Diversified Operations - 0.9%
Diageo Capital plc
6.125% due 08/15/05 .......................... 200 189
Honeywell International, Inc. - Notes
7.5% due 03/01/10 ............................ 75 75
John Deere Capital Corp. - Notes
6.0% due 02/15/09 ............................ 60 52
Seagram, Ltd.
8.35% due 01/15/22 ........................... 50 50
127
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Diversified Operations - Continued
Tyco International Group SA
6.375% due 06/15/05 .......................... 80 $ 76
--------
442
Electric Power - 1.4%
CalEnergy Co., Inc. - Bonds
8.48% due 09/15/28 ........................... 60 61
Duke Energy Co. - 1st Ref. Mtg.
6.75% due 08/01/25 ........................... 100 85
Enersis SA - Notes
6.9% due 12/01/06 ............................ 30 28
Florida Power & Light Co.
7.75% due 02/01/23 ........................... 50 48
Ontario Hydro - Local Govt. Gtd.
6.1% due 01/30/08 ............................ 100 93
Philadelphia Electric Co. - 1st Ref. Mtg.
7.125% due 09/01/02 .......................... 100 99
Tennessee Valley Authority
6.75% due 11/01/25 ........................... 100 93
Virginia Electric Power Co. - 1st Mtge.
7.625% due 07/01/07 .......................... 150 148
--------
655
Financial Services - 3.6%
Ameritech Capital Funding Corp.
6.875% due 10/15/27 .......................... 60 53
Associates Corp. of North America
5.5% due 02/15/04 ............................ 175 163
Citicorp Capital II
8.015% due 02/15/27 .......................... 100 93
Ford Capital BV - Debs.
9.5% due 06/01/10 ............................ 150 163
GATX Capital Corp. - Notes
6.875% due 12/15/06 .......................... 100 94
General Electric Capital Corp. - Debs.
8.75% due 05/21/07 ........................... 250 269
Goldman Sachs Group, Inc.
7.8% due 01/28/10 ............................ 100 99
KFW International Finance - Debs.
9.125% due 05/15/01 .......................... 300 305
Morgan Stanley, Dean Witter, Discover & Co. -
Notes
6.875% due 03/01/03 .......................... 200 198
Newcourt Credit Group, Inc. Ser. B
6.875% due 02/16/05 .......................... 100 96
Sumitomo Bank International Finance NV - Notes
8.5% due 06/15/09 ............................ 100 101
Washington Mutual Capital I
8.375% due 06/01/27 .......................... 60 53
--------
1,687
Food, Beverage and Tobacco - 1.5%
Archer Daniels Midland Co. - Notes
6.25% due 05/15/03 ........................... 275 265
Coca-Cola Enterprises, Inc. - Debs.
8.5% due 02/01/22 ............................ 100 106
Conagra, Inc. - Debs.
9.75% due 03/01/21 ........................... 75 83
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 ........................... 100 100
SUPERVALU, Inc. - Notes
7.625% due 09/15/04 .......................... 150 149
--------
703
Foreign Governmental - 2.2%
Government of New Zealand - Debs.
8.75% due 12/15/06 ........................... 120 130
Hydro-Quebec
8.4% due 01/15/22 ............................ 100 106
Kingdom of Sweden - Debs.
12.0% due 02/01/10 ........................... 75 99
Malaysia - Bonds
8.75% due 06/01/09 ........................... 50 51
Province of Manitoba - Debs.
6.875% due 09/15/02 .......................... 200 199
Province of Newfoundland - Debs.
9.0% due 10/15/21 ............................ 60 68
Province of Ontario
8.0% due 10/17/01 ............................ 200 202
Province of Quebec - Debs.
7.5% due 07/15/23 ............................ 100 98
Republic of Korea
8.75% due 04/15/03 ........................... 85 87
--------
1,040
Health Care Products - 0.2%
Eli Lilly & Co. - Notes
7.125% due 06/01/25 .......................... 80 78
Insurance - 0.6%
Aetna Services, Inc.
7.625% due 08/15/26 .......................... 100 85
Hartford Life, Inc. Debs.
7.65% due 06/15/27 ........................... 50 48
Torchmark, Inc. - Debs.
8.25% due 08/15/09 ........................... 100 101
Travelers Property Casualty Corp. - Sr. Notes
7.75% due 04/15/26 ........................... 50 48
--------
282
Machinery - 0.5%
Caterpillar, Inc. - Debs.
8.0% due 02/15/23 ............................ 50 50
128
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Machinery - Continued
Reliance Electric Co. - Notes
6.8% due 04/15/03 ............................ 200 $ 199
--------
249
Media - TV / Radio - 1.0%
News America Holdings, Inc. - Debs.
7.7% due 10/30/25 ............................ 100 91
TCI Communciations, Inc. - Sr. Notes
7.125% due 02/15/28 .......................... 70 63
The Walt Disney Co. - Sr. Notes
6.75% due 03/30/06 ........................... 200 196
Time Warner Entertainment, Inc. - Sr. Notes
8.375% due 07/15/33 .......................... 100 102
--------
452
Metals and Mining - 0.4%
Noranda, Inc. - Debs.
7.0% due 07/15/05 ............................ 200 188
Natural Gas Distribution - 0.5%
Enron Corp. - Notes
6.75% due 09/15/04 ........................... 100 97
Pacific Gas & Electric Co.
6.75% due 10/01/23 ........................... 50 43
Tennessee Gas Pipeline - Bonds
7.5% due 04/01/17 ............................ 100 95
--------
235
Oil - 0.6%
Atlantic Richfield Co. (ARCO) - Notes
5.55% due 04/15/03 ........................... 75 73
Conoco, Inc. - Sr. Notes
6.95% due 04/15/29 ........................... 90 82
Occidental Petroleum Corp. - Debs.
7.2% due 04/01/28 ............................ 40 35
Tosco Corp. - Notes
7.625% due 05/15/06 .......................... 115 113
--------
303
Oil - Equipment and Services - 0.5%
Coastal Corp. - Debs.
6.5% due 06/01/08 ............................ 100 93
Petroleum-Geo Services ASA - Sr. Notes
6.625% due 03/30/08 .......................... 175 155
--------
248
Oil and Natural Gas Exploration and Production - 0.6%
Burlington Resources, Inc - Debs.
9.125% due 10/01/21 .......................... 90 100
Norsk Hydro A/S
7.25% due 09/23/27 ........................... 75 67
Phillips Petroleum Co. - Debs.
6.65% due 07/15/18 ........................... 50 43
Union Oil Co. of California
7.5% due 02/15/29 ............................ 60 57
--------
267
Paper and Forest Products - 0.4%
Bowater, Inc. - Debs.
9.0% due 08/01/09 ............................ 100 104
Champion International Corp. - Debs.
7.35% due 11/01/25 ........................... 50 44
Westvaco Corp. - Notes
7.1% due 11/15/09 ............................ 35 33
--------
181
Personal and Commercial Lending - 3.4%
Aristar, Inc. - Sr. Notes
6.5% due 11/15/03 ............................ 200 191
CitiFinacial Credit Co. - Notes
5.9% due 09/01/03 ............................ 150 143
Ford Motor Co. - Bonds
6.625% due 02/15/28 .......................... 50 42
Ford Motor Credit Co.
6.125% due 01/09/06 .......................... 300 279
Ford Motor Credit Co. - Sr. Notes
5.75% due 02/23/04 ........................... 200 188
General Motors Acceptance Corp.
5.85% due 01/14/09 ........................... 100 88
General Motors Acceptance Corp. - Notes
9.625% due 12/15/01 .......................... 350 361
Household Finance Corp. - Notes
6.5% due 11/15/08 ............................ 130 118
Toyota Motor Credit Corp. - Notes
5.5% due 12/15/08 ............................ 60 53
U.S. West Capital Funding , Inc.
6.5% due 11/15/18 ............................ 150 127
--------
1,590
Real Estate Investment Trust - 0.1%
Spieker Properties, Inc. - Debs.
7.5% due 10/01/27 ............................ 40 34
Retail - Department Stores - 0.4%
Dayton Hudson Corp. - Debs.
6.75% due 01/01/28 ........................... 25 21
Gap, Inc. - Notes
6.9% due 09/15/07 ............................ 100 97
Wal-Mart Stores, Inc. - Debs.
6.75% due 10/15/23 ........................... 100 92
--------
210
Retail - Food - 0.2%
Albertson's, Inc. - Notes
6.625% due 06/01/28 .......................... 50 41
129
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Retail - Food - Continued
McDonald's Corp. - Sub. Debs.
7.31% due 09/15/27 ........................... $ 60 $ 57
-------
98
Telecommunication Equipment - 0.5%
GTE Corp. - Debs.
6.94% due 04/15/28 ........................... 100 88
Lucent Technologies, Inc. - Debs.
6.5% due 01/15/28 ............................ 50 45
Lucent Technologies, Inc. - Notes
7.25% due 07/15/06 ........................... 100 101
-------
234
Telecommunication Services - 1.0%
AT&T Canada, Inc. - Sr. Notes
7.65% due 09/15/06 ........................... 150 148
Bell Canada
7.75% due 04/01/06 ........................... 125 126
BellSouth Telecommunications, Inc. - Debs.
7.0% due 10/01/25 ............................ 100 90
Deutsche Telekom International Finance
8.25% due 06/15/30 ........................... 100 102
-------
466
Telephone - 1.9%
ALLTEL Corp. - Sr. Notes
7.6% due 04/01/09 ............................ 100 100
AT&T Corp. - Notes
6.0% due 03/15/09 ............................ 200 178
6.5% due 03/15/29 ............................ 60 50
Comcast Cable Communications - Notes
8.875% due 05/01/17 .......................... 75 81
MCI Worldcom, Inc. - Sr. Notes
6.4% due 08/15/05 ............................ 200 190
New York Telephone Co. - Debs.
7.25% due 02/15/24 ........................... 100 90
SBC Communications Capital Corp. - Debs.
5.875% due 06/01/03 .......................... 100 96
South Carolina Electric & Gas - 1st Mtge.
7.5% due 06/15/23 ............................ 100 93
-------
878
Transportation Services - 0.9%
American Airlines, Inc. - Pass Through
Certificates
7.024% due 04/15/11 .......................... 60 57
CSX Corp. - Debs.
7.45% due 05/01/07 ........................... 125 120
Delta Air Lines, Inc. - Debs.
10.375% due 12/15/22 ......................... 100 109
Norfolk Southern Corp. - Notes
7.35% due 05/15/07 ........................... 125 121
-------
407
U.S. Government Agencies - 15.4%
Federal Home Loan Bank - Bonds
5.58% due 08/17/01 ........................... 300 295
6.75% due 02/15/02 ........................... 600 598
Federal Home Loan Bank Disc. Corp. -
Sr. Notes
5.8% due 09/02/08 ............................ 225 207
Federal Home Loan Mortgage Corp. - Bonds
7.1% due 04/10/07 ............................ 700 699
Federal Home Loan Mortgage Corp. - Notes
5.75% due 04/15/08 ........................... 250 230
5.75% due 07/15/03 ........................... 800 773
6.3% due 06/01/04 ........................... 300 290
6.875% due 01/15/05 .......................... 150 149
Federal National Mortgage Assoc. - Notes
5.125% due 02/13/04 .......................... 230 216
5.375% due 03/15/02 .......................... 450 439
5.625% due 05/14/04 .......................... 1,100 1,048
5.875% due 04/23/04 .......................... 300 286
6.0% due 05/15/08 ............................ 340 317
6.25% due 05/15/29 ........................... 465 418
6.5% due 04/29/09 ............................ 200 187
7.125% due 03/15/07 .......................... 525 526
4.75% due 11/14/03 ........................... 175 163
6.19% due 02/19/09 ........................... 120 110
7.125% due 01/15/30 .......................... 109 110
Financing Corp. - Bonds
8.6% due 09/26/19 ............................ 150 172
-------
7,233
U.S. Governmental - 48.3%
U.S. Treasury - Bond
10.75% due 08/15/05 .......................... 600 715
U.S. Treasury - Bonds
5.5% due 08/15/28 ............................ 800 734
5.875% due 11/15/04 .......................... 225 222
6.25% due 05/15/30 ........................... 300 315
6.5% due 11/15/26 ............................ 185 193
6.75% due 08/15/26 ........................... 275 296
7.625% due 11/15/22 .......................... 1,240 1,451
8.125% due 08/15/21 .......................... 600 733
8.75% due 05/15/17 ........................... 1,265 1,593
8.75% due 08/15/20 ........................... 1,100 1,414
9.25% due 02/15/16 ........................... 300 389
11.125% due 08/15/03 ......................... 2,000 2,263
11.25% due 02/15/15 .......................... 260 383
11.75% due 02/15/10 .......................... 250 302
11.75% due 11/15/14 .......................... 465 640
U.S. Treasury - Notes
4.75% due 02/15/04 ........................... 1,250 1,189
130
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
BOND INDEX PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
U.S. Governmental - Continued
4.75% due 11/15/08 ........................... $ 660 $ 599
5.5% due 07/31/01 ............................ 600 594
5.625% due 05/15/08 .......................... 1,375 1,326
5.875% due 11/15/05 .......................... 890 875
6.375% due 03/31/01 .......................... 400 400
6.375% due 08/15/02 .......................... 960 959
6.5% due 05/31/02 ............................ 1,600 1,602
7.5% due 11/15/01 ............................ 800 810
7.5% due 05/15/02 ............................ 450 458
7.875% due 11/15/04 .......................... 1,020 1,080
8.0% due 05/15/01 ............................ 1,100 1,114
United Mexican States - Notes
9.875% due 02/01/10 .......................... 120 125
--------
22,774
--------
TOTAL PUBLICLY-TRADED BONDS- 96.1% 45,274
SHORT-TERM INVESTMENTS - 2.5%
Investment in joint trading account (Note B)
6.853% due 07/03/00 .......................... 1,185 1,185
-------- --------
TOTAL INVESTMENTS- 98.6% 46,459
Cash and Receivables, less payables- 0.4% 663
-------- --------
NET ASSETS- 100.0% 47,122
See notes to financial statements.
131
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.7%
United Technologies Corp. ............ 7,300 $ 430
Banks - 1.1%
Chase Manhattan Corp. ................ 5,000 231
Wells Fargo & Co. .................... 1,400 54
------
285
Brokerage and Investment Management -
2.0%
Goldman Sachs Group, Inc. ............ 100 10
Morgan Stanley, Dean Witter,
Discover & Co. ...................... 5,900 491
------
501
Computer Equipment - 9.1%
Dell Computer Corp. * ................ 11,600 572
Foundry Networks, Inc. * ............. 100 11
Intel Corp. .......................... 10,100 1,350
Lexmark International Group,
Inc. - Cl. A * ...................... 1,800 121
VeriSign, Inc. ....................... 915 161
VERITAS Software Corp. * ............. 500 57
------
2,272
Computer Software and Services - 9.8%
EMC Corp. * .......................... 9,500 731
IMS Health, Inc. ..................... 1,200 22
Microsoft Corp. ...................... 10,200 816
Oracle Corp. * ....................... 8,200 689
Sun Microsystems, Inc. * ............. 1,900 173
------
2,431
Cosmetics and Personal Care Products -
1.4%
Colgate-Palmolive Co. ................ 5,700 341
Diversified Operations - 7.9%
Corning, Inc. ........................ 1,800 486
Tyco International, Ltd. ............. 31,500 1,492
------
1,978
Electronic Products and Services - 12.1%
Applied Materials, Inc. * ............ 12,200 1,106
Cisco Systems, Inc. * ................ 17,700 1,125
Micron Technology, Inc. * ............ 2,600 229
PE Corp-BE Biosystems Group .......... 500 33
PMC-Sierra, Inc. * ................... 1,000 178
Texas Instruments, Inc. .............. 4,900 336
------
3,007
Financial Services - 5.9%
Associates First Capital
Corp. - Cl. A* ...................... 23,300 520
Citigroup, Inc. ...................... 15,700 946
------
1,466
Health Care Products - 10.2%
Medtronic, Inc. ...................... 5,700 284
Pfizer, Inc. ......................... 27,075 1,299
Pharmacia Corp. ...................... 3,500 181
Schering-Plough Corp. ................ 15,400 778
------
2,542
Insurance - 0.9%
American International Group, Inc. ... 1,800 211
Media - Publishing - 4.0%
AT&T Corp. - Liberty Media Group - Cl.
A * ................................. 38,000 921
Comcast Corp. - Cl. A ................ 2,000 81
------
1,002
Media - TV / Radio - 5.9%
AMFM, Inc. * ......................... 2,800 193
Cox Communications, Inc. - Cl. A * ... 100 5
The Walt Disney Co. .................. 3,300 128
Time Warner, Inc. .................... 9,900 752
Viacom, Inc. - Cl. B * ............... 5,621 383
------
1,461
Personal and Commercial Lending - 1.4%
MBNA Corp. ........................... 12,900 350
Retail - Department Stores - 5.8%
eBay, Inc. * ......................... 1,800 98
Gap, Inc. ............................ 5,800 181
Home Depot, Inc. ..................... 12,600 629
Kohl's Corp. ......................... 4,800 267
Lowe's Cos., Inc. .................... 5,500 226
Target Corp. ......................... 900 52
------
1,453
Retail - Drug Stores - 1.0%
Walgreen Co. ......................... 7,700 248
Telecommunication Equipment - 10.1%
E-Tek Dynamics, Inc. * ............... 1,100 290
Nokia Oyj - ADR ...................... 31,300 1,563
Nortel Networks Corp. ................ 9,500 649
Sycamore Networks, Inc. * ............ 200 22
------
2,524
Telecommunication Services - 4.9%
MediaOne Group, Inc. ................. 6,800 451
Telefonaktiebolaget LM Ericsson AB -
ADR ................................. 6,000 120
Vodafone AirTouch plc - ADR .......... 15,700 650
------
1,221
Telephone - 2.8%
AT&T Wireless Group * ................ 18,800 524
Sprint Corp. ......................... 3,600 184
------
708
U.S. Government Agencies - 1.1%
Federal Home Loan Mortgage Corp. ..... 6,200 251
132
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
LARGE CAP AGGRESSIVE GROWTH PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
U.S. Government Agencies - Continued
Federal National Mortgage Assoc. ...... 400 $ 21
-------
272
-------
TOTAL COMMON STOCK- 99.1% 24,703
Par
Value
(000's)
COMMERCIAL PAPER - 1.4%
General Electric Capital Corp.
6.8% due 07/03/00 .................... $ 342 342
------ ------
TOTAL INVESTMENTS- 100.5% 25,045
Payables, less cash and receivables- (0.5)% (118)
------ ------
NET ASSETS- 100.0% 24,927
====== ======
* Non-income producing security.
ADR-American Depository Receipt
See notes to financial statements.
133
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 0.4%
GenCorp, Inc. ............................... 2,700 $ 22
HEICO Corp. ................................. 1,200 17
The Titan Corp. * ........................... 600 27
-------
66
Auto and Truck Parts - 0.8%
Avis Rent A Car, Inc. * ..................... 600 11
Bandag, Inc. ................................ 800 19
Cummins Engine Company, Inc. ................ 1,000 27
Lear Corp. * ................................ 800 16
Navistar International Corp., Inc. - Cl. B .. 800 25
Superior Industries International, Inc. ..... 1,000 26
Tower Automotive, Inc. * .................... 600 8
-------
132
Automobile - 0.2%
Lithia Motors, Inc. - Cl. A * ............... 600 8
Oshkosh Truck Corp. ......................... 900 32
-------
40
Banks - 4.5%
Associated Banc-Corp. ....................... 880 19
Bancwest Corp. .............................. 2,400 39
Banknorth Group, Inc. ....................... 1,825 28
Capitol Federal Financial ................... 2,100 23
Cathay Bancorp, Inc. ........................ 600 28
City National Corp. ......................... 1,500 52
Community Trust Bancorp, Inc. ............... 1,240 22
CORUS Bankshares, Inc. ...................... 1,200 32
Cullen/Frost Bankers, Inc. .................. 1,500 39
Dime Bancorp, Inc. .......................... 1,500 24
Downey Financial Corp. ...................... 1,900 55
F & M National Corp. ........................ 1,000 21
First Citizens BancShares, Inc. - Cl. A ..... 300 18
First Security Corp. ........................ 1,900 26
First Sentinel Bancorp, Inc. ................ 1,500 12
First United Bancshares, Inc. ............... 600 9
Greater Bay Bancorp ......................... 800 38
Hancock Holding Co. ......................... 700 24
Hibernia Corp. - Cl. A ...................... 1,500 16
Hudson River Bancorp ........................ 2,700 32
Imperial Bancorp * .......................... 1,400 22
Mercantile Bankshares Corp. ................. 1,000 30
North Fork Bancorporation, Inc. ............. 800 12
OceanFirst Financial Corp. .................. 1,100 20
Omega Financial Corp. ....................... 600 15
Roslyn Bancorp, Inc. ........................ 1,300 22
Silicon Valley Bancshares * ................. 1,400 60
United Community Financial Corp. ............ 2,000 13
-------
751
Brokerage and Investment Management - 1.6%
A.G. Edwards, Inc. .......................... 1,100 43
Affiliated Managers Group, Inc. * ........... 900 41
Jefferies Group, Inc. ....................... 700 14
John Nuveen Co. - Cl. A ..................... 900 38
Raymond James Financial, Inc. ............... 1,900 43
Southwest Securities Group, Inc. ............ 500 18
Tucker Anthony Sutro Corp. .................. 1,100 20
Waddell & Reed Financial, Inc. - Cl. A ...... 1,600 52
-------
269
Business Services - 1.1%
Comdisco, Inc. .............................. 1,500 33
Forrester Research, Inc. * .................. 300 22
Harris Corp. ................................ 900 30
Manpower, Inc. .............................. 1,000 32
Robert Half International, Inc. ............. 2,000 57
-------
174
Chemicals - 1.3%
Albemarle Corp. ............................. 1,200 24
Arch Chemicals, Inc. ........................ 400 9
ChemFirst, Inc. ............................. 1,200 29
Crompton Corp. .............................. 1,400 17
Cytec Industries, Inc. * .................... 700 17
H.B. Fuller Co. ............................. 400 18
IMC Global, Inc. ............................ 1,200 16
Lubrizol Corp. .............................. 1,600 34
Millennium Chemicals, Inc. .................. 1,200 20
Octel Corp. * ............................... 1,500 12
Sigma-Aldrich Corp. ......................... 900 26
-------
222
Commercial Services - 4.0%
ACNielson Corp. * ........................... 1,000 22
ADVO, Inc. .................................. 800 34
Brady Corp. - Cl. A ......................... 1,100 36
CSG Systems International, Inc. * ........... 400 22
Diamond Technology Partners, Inc. ........... 400 35
F.Y.I., Inc. * .............................. 700 24
Fair Issac & Co., Inc. ...................... 500 22
Informix Corp. * ............................ 3,250 24
infoUSA, Inc. * ............................. 1,000 6
Lamar Advertising Co. * ..................... 700 30
Macrovision Corp. * ......................... 400 26
Paxar Corp. * ............................... 1,200 14
Plexus Corp. * .............................. 200 23
Power One, Inc. * ........................... 450 51
Quanta Services, Inc. * ..................... 650 36
Standard Register Co. ....................... 1,100 16
StarTek, Inc. * ............................. 200 10
Steelcase, Inc. - Cl. A ..................... 2,700 46
Stericycle, Inc. * .......................... 600 14
Sybase, Inc. * .............................. 800 18
TeleTech Holdings, Inc. * ................... 600 19
Thor Industries, Inc. ....................... 500 10
TMP Worldwide, Inc. * ....................... 500 37
134
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Commercial Services - Continued
Valassis Communications, Inc. * .............. 750 $ 29
Ventiv Health, Inc. * ........................ 1,100 12
Veritas DGC, Inc. * .......................... 600 16
Wackenhut Corp. - Cl. A ...................... 600 8
Waste Connections, Inc. * .................... 900 18
-------
658
Computer Equipment - 3.1%
Adaptec, Inc. * .............................. 800 18
Diebold, Inc. ................................ 1,000 28
Extreme Networks, Inc. * ..................... 200 21
InFocus Corp. * .............................. 900 29
Intergraph Corp. ............................. 100 1
Mercury Computer Systems, Inc. * ............. 500 16
MTI Technology Corp. * ....................... 500 4
Network Appliance, Inc. * .................... 2,200 177
Quantum Corp. - DLT & Storage * .............. 1,200 11
SanDisk Corp. * .............................. 600 37
Tech Data Corp. * ............................ 500 22
VeriSign, Inc. ............................... 815 144
-------
508
Computer Software and Services - 10.6%
24/7 Media, Inc. ............................. 200 3
Actuate Software Corp. ....................... 700 37
Advanced Digital Information Corp. * ......... 1,100 18
Advent Software, Inc. * ...................... 300 19
Affiliated Computer Services, Inc. - Cl. A * . 800 26
Allaire Corp. * .............................. 100 4
Aspen Technologies, Inc. * ................... 300 12
Autodesk, Inc. ............................... 700 24
Avant! Corp. * ............................... 1,200 22
AVT Corp. * .................................. 500 4
AXENT Technologies, Inc. * ................... 400 10
Barra, Inc. * ................................ 600 30
BEA Systems, Inc. ............................ 2,500 124
BroadVision, Inc. * .......................... 1,400 71
Brocade Communications Systems, Inc. * ....... 100 18
Cabletron Systems, Inc. * .................... 1,600 40
Cadence Design Systems, Inc. * ............... 1,700 35
CheckFree Hol dings Corp. * .................. 300 15
CNET Networks, Inc. .......................... 500 12
Cognizant Technology Solutions Corp. ......... 200 7
Critical Path, Inc. * ........................ 200 12
Documentum, Inc. * ........................... 400 36
DoubleClick, Inc. * .......................... 756 29
DST Systems, Inc. * .......................... 500 38
EarthLink, Inc. * ............................ 561 9
Echelon Corp. * .............................. 100 6
Exodus Communications, Inc. * ................ 3,000 138
FileNet Corp. * .............................. 800 15
Globix Corp. * ............................... 200 6
go.com * ..................................... 330 4
Go2Net, Inc. * ............................... 200 10
HNC Software, Inc. ........................... 500 31
Hyperion Solutions Corp. ..................... 500 16
i2 Technologies, Inc. * ...................... 820 86
IGATE Capital Corp. .......................... 900 12
InfoSpace.com, Inc. * ........................ 900 50
ISS Group, Inc. * ............................ 200 20
Macromedia, Inc. * ........................... 300 29
Manugistics Group, Inc. * .................... 500 23
MarchFirst, Inc. * ........................... 1,432 26
Mercury Interactive Corp. * .................. 700 68
Micromuse, Inc. * ............................ 200 33
MicroStrategy, Inc. * ........................ 900 27
Midway Games, Inc. * ......................... 1,800 15
Network Associates, Inc. ..................... 1,100 22
NVIDIA Corp. * ............................... 400 25
Open Market, Inc. * .......................... 400 6
Peregrine Systems, Inc. * .................... 800 28
Pinnacle Systems, Inc. ....................... 400 9
Portal Software, Inc. * ...................... 100 6
Proxicom, Inc. * ............................. 200 10
PSINet, Inc. * ............................... 800 20
Rare Medium Group, Inc. * .................... 400 6
Rational Software Corp. * .................... 700 65
Redback Networks, Inc. * ..................... 100 18
Remedy Corp. * ............................... 400 22
Rhythms NetConnections, Inc. * ............... 400 5
RSA Security, Inc. * ......................... 400 28
Safeguard Scientifics, Inc. * ................ 800 26
Sapient Corp. ................................ 200 21
SCM Microsystems, Inc. * ..................... 200 12
SoftNet Systems, Inc. ........................ 100 1
Spyglass, Inc. * ............................. 200 6
Symantec Corp. * ............................. 600 32
Synopsys, Inc. ............................... 500 17
Unigraphics Solutions, Inc. * ................ 300 6
Verio, Inc. .................................. 500 28
Verity, Inc. * ............................... 300 11
VerticalNet, Inc. * .......................... 600 22
Vignette Corp. * ............................. 700 36
-------
1,758
Construction - 1.0%
Butler Manufacturing Co. ..................... 1,700 29
Centex Construction Products, Inc. ........... 500 11
Dycom Industries, Inc. ....................... 400 18
Lafarge Corp. ................................ 1,000 21
NVR, Inc. * .................................. 600 34
Pitt - Des Moines, Inc. ...................... 400 8
USG Corp. * .................................. 1,300 40
-------
161
Consumer - Miscellaneous - 0.7%
Briggs & Stratton Corp. ...................... 800 27
Herbalife International, Inc. - Cl. A ........ 1,100 10
135
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Consumer - Miscellaneous - Continued
Learning Tree International, Inc. * ............. 500 $ 31
Nu Skin Enterprises, Inc. - Cl. A * ............. 2,300 13
SCP Pool Corp. * ................................ 600 14
Toro Co. ........................................ 500 16
-------
111
Containers - 0.5%
Bemis Co., Inc. ................................. 1,300 44
Sonoco Products Co. ............................. 1,700 35
-------
79
Cosmetics and Personal Care Products - 0.3%
Alberto-Culver Co. - Cl. B ...................... 1,700 52
Diversified Operations - 1.3%
A.O. Smith Corp. ................................ 1,400 29
Chemed Corp. .................................... 700 20
Coherent, Inc. * ................................ 300 25
ITT Industries, Inc. ............................ 1,500 45
Lancaster Colony Corp. .......................... 1,100 21
Pall Corp. ...................................... 1,500 28
Reynolds & Reynolds Co. - Cl. A ................. 1,200 22
Trinity Industries, Inc. ........................ 1,400 26
-------
216
Electric Power - 3.0%
Calpine Corp. * ................................. 1,600 105
CMP Group, Inc. ................................. 1,000 29
El Paso Electric Company ........................ 2,600 29
Energy East Corp. ............................... 3,100 59
LG&E Energy Corp. ............................... 700 17
Ni Source, Inc. ................................. 1,200 22
Pinnacle West Capital Corp. ..................... 1,400 47
Public Service Co. of New Mexico ................ 1,000 15
Puget Sound Energy, Inc. ........................ 1,400 30
RGS Energy Group, Inc. .......................... 2,900 65
UtiliCorp United, Inc. .......................... 1,100 22
Western Resources, Inc. ......................... 1,900 30
Wisconsin Energy Corp. .......................... 1,200 24
-------
494
Electrical Equipment - 1.1%
American Power Conversion ....................... 1,300 54
Anixter International, Inc. ..................... 1,100 29
Integrated Device Technology, Inc. * ............ 800 48
Littelfuse, Inc. * .............................. 600 29
The Genlyte Corp. * ............................. 900 19
-------
179
Electronic Products and Services - 12.4%
Advanced Micro Devices, Inc. * .................. 1,400 108
Alliance Semiconductor Corp. * .................. 800 20
Alliant Energy Corp. ............................ 1,700 44
Amkor Technology, Inc. * ........................ 800 28
Amphenol Corp. - Cl. A * ........................ 600 40
Anadigics, Inc. * ............................... 450 15
Applied Micro Circuits Corp. * .................. 900 89
Arrow Electronics, Inc. * ....................... 1,300 40
Asyst Technologies, Inc. * ...................... 400 14
Atmel Corp. * ................................... 2,200 81
AVX Corp. ....................................... 1,000 23
Ball Corp. ...................................... 900 29
Brooks Automation, Inc. * ....................... 300 19
C-COR.net Corp. * ............................... 400 11
Cognex Corp. * .................................. 500 26
Compucom Systems, Inc. * ........................ 500 1
Conexant Systems, Inc. * ........................ 1,300 63
Credence Systems Corp. * ........................ 500 28
Cree, Inc. * .................................... 300 40
Cypress Semiconductor Corp. * ................... 1,100 46
Cytyc Corp. * ................................... 500 27
Dallas Semiconductor Corp. ...................... 800 33
Electronics for Imaging, Inc. * ................. 500 13
Emulex Corp. * .................................. 400 26
Entrust Technologies, Inc. ...................... 200 16
General Semiconductor, Inc. ..................... 400 6
Kemet Corp. * ................................... 1,400 35
Kopin Corp. ..................................... 300 21
Lam Research Corp. * ............................ 1,400 52
Lattice Semiconductor Corp. * ................... 400 28
LTX Corp. * ..................................... 800 28
MedQuist, Inc. * ................................ 500 17
Microchip Technology, Inc * ..................... 650 38
Moog, Inc. - Cl. A * ............................ 900 24
MRV Communications, Inc. * ...................... 600 40
National Semiconductor Corp. * .................. 1,400 79
Novellus Systems, Inc. * ........................ 1,100 62
PerkinElmer, Inc. ............................... 500 33
PMC-Sierra, Inc. * .............................. 1,100 195
QLogic Corp. * .................................. 500 33
Sawtek, Inc. * .................................. 400 23
SCI Systems, Inc. * ............................. 1,200 47
SDL, Inc. * ..................................... 500 143
Sensormatic Electronics Corp. * ................. 1,200 19
Silicon Valley Group, Inc. * .................... 700 18
Tektronix, Inc. ................................. 700 52
TranSwitch Corp. * .............................. 500 39
Trimble Navigation, Ltd. * ...................... 200 10
Vicor Corp. * ................................... 600 21
Vishay Intertechnology, Inc. * .................. 1,162 44
Waters Corp. * .................................. 500 62
-------
2,049
Energy - Alternative Source - 0.7%
Dynegy, Inc. - Cl.A ............................. 1,600 109
Engineering and Construction - 0.2%
Fluor Corp. ..................................... 1,300 41
136
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Financial Services - 0.6%
Advanta Corp. - Cl. A .............................. 800 $ 10
AmeriCredit Corp. * ................................ 1,300 22
GreenPoint Financial Corp. ......................... 1,300 25
National Discount Brokers * ........................ 600 19
Rollins Truck Leasing Corp. ........................ 1,600 11
S1 Corp. * ......................................... 400 9
-------
96
Food, Beverage and Tobacco - 1.8%
Canandaigua Brands, Inc. - Cl. A * ................ 600 30
Corn Products International, Inc. .................. 1,100 29
Fleming Cos., Inc. ................................. 1,300 17
IBP, Inc. .......................................... 2,400 37
J.M. Smucker Co. ................................... 1,300 25
NBTY, Inc. * ....................................... 1,500 10
Pepsi Bottling Group, Inc. ......................... 2,200 64
Pilgrims Pride Corp. - Cl. B ....................... 1,400 10
Robert Mondavi Corp. - Cl. A * .................... 700 22
Suiza Foods Corp. * ................................ 500 25
SUPERVALU, Inc. .................................... 1,800 34
-------
303
Health Care Products - 7.9%
Abgenix, Inc. * .................................... 200 24
Affymetrix, Inc. * ................................. 200 33
Alkermes, Inc. * ................................... 400 19
Alpharma, Inc. - Cl. A ............................. 900 56
ALZA Corp. * ....................................... 800 47
Andrx Corp. * ...................................... 400 26
Beckman Coulter, Inc. .............................. 500 29
Bergen Brunswig Corp. - Cl. A ...................... 3,000 16
Block Drug Co. - Cl. A ............................. 1,036 44
C.R. Bard, Inc. .................................... 600 29
Celera Genomics * .................................. 500 47
Celgene Corp. * .................................... 600 35
Cephalon, Inc. * ................................... 300 18
Chiron Corp. * ..................................... 1,000 47
Cooper Cos, Inc. ................................... 600 22
Genzyme Corp. (General Division) * ................. 600 36
Gilead Sciences, Inc. * ............................ 300 21
Haemonetics Corp. * ................................ 900 19
Human Genome Sciences, Inc. * ...................... 400 53
ICN Pharmaceuticals, Inc. .......................... 700 19
Incyte Pharmacuticals, Inc. * ...................... 300 25
IVAX Corp. ......................................... 1,900 79
Jones Pharma, Inc. ................................. 800 32
King Pharmaceuticals, Inc. * ....................... 450 20
Mallinckrodt, Inc. ................................. 1,800 78
MedImmune, Inc. * .................................. 1,500 111
Millennium Pharmaceuticals, Inc. * ................. 600 67
MiniMed, Inc. * .................................... 200 24
Mylan Laboratories, Inc. ........................... 1,300 24
Priority Healthcare Corp. - Cl. B * ................ 300 22
Protein Design Labs, Inc. * ........................ 200 33
Respironics, Inc. * ................................ 1,000 18
Sepracor, Inc. * ................................... 500 60
Vertex Pharmaceuticals, Inc. * ..................... 300 32
Watson Pharmaceuticals, Inc. * ..................... 800 43
-------
1,308
Health Care Services - 2.2%
AmeriPath, Inc. * .................................. 700 6
Apria Healthcare Group, Inc. * ..................... 1,300 16
Beverly Enterprises, Inc. * ........................ 1,800 5
Bindley Western Industries, Inc. ................... 1,221 32
Foundation Health Systems, Inc. - Cl. A * ......... 800 10
Gentiva Health Services, Inc. ...................... 1
Health Management Associates, Inc. - Cl. A * ....... 2,200 29
Idec Pharmaceuticals Corp. ......................... 400 47
Pediatrix Medium Group, Inc. * ..................... 1,500 17
Quest Diagnostics, Inc. * .......................... 1,000 72
St. Jude Medical, Inc. * ........................... 700 32
Triad Hospitals, Inc. * ............................ 700 17
Trigon Healthcare, Inc. * .......................... 600 31
Universal Health Services, Inc. - Cl. B * .......... 700 46
-------
360
Household Appliances / Furnishings - 0.9%
Aaron Rents, Inc. .................................. 1,000 13
CompX International, Inc. * ........................ 1,000 20
Furniture Brands International, Inc. * ............. 1,000 15
HomeBase, Inc. ..................................... 1,400 2
La-Z-Boy, Inc. ..................................... 1,600 22
Rent-Way, Inc. * ................................... 1,000 29
Salton, Inc. * ..................................... 500 19
Springs Industries, Inc. - Cl. A ................... 1,000 32
-------
152
Housing - 0.7%
American Standard Cos., Inc. ....................... 1,000 41
D.R. Horton, Inc. .................................. 1,300 17
Kaufman & Broad Home Corp. ......................... 1,200 24
Monaco Coach Corp. * ............................... 800 11
National R.V. Holdings, Inc. * ..................... 800 8
Winnebago, Industries, Inc. ........................ 1,200 16
-------
117
Insurance - 2.3%
Allmerica Financial Corp. .......................... 600 31
Delphi Financial Group, Inc. - Cl. A * ............. 420 14
Fidelity National Financial, Inc. .................. 1,310 24
First American Financial Corp. ..................... 800 12
LandAmerica Financial Group, Inc. .................. 1,200 28
National Western Life Insurance Co. ................ 500 36
Presidential Life Corp. ............................ 1,300 18
Radian Group, Inc. ................................. 1,100 57
The Midland Co. .................................... 900 22
The MONY Group, Inc. ............................... 1,800 61
137
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Insurance - Continued
The PMI Group, Inc. ............................. 1,100 $ 52
Triad Guaranty, Inc. * .......................... 800 18
--------
373
Leisure and Recreation - 1.8%
Arctic Cat, Inc. ................................ 2,000 24
Argosy Gaming Co. * ............................. 1,300 19
Aztar Corp. * ................................... 2,000 31
Brunswick Corp. ................................. 1,400 23
Dover Downs Entertainment * ..................... 1,300 18
Electronic Arts, Inc. * ......................... 300 22
Harrah's Entertainment, Inc. * .................. 1,300 27
Papa John's International, Inc. * ............... 700 17
Park Place Entertainment Corp. * ................ 2,700 33
Premier Parks, Inc. * ........................... 700 16
SFX Entertainment, Inc. * ....................... 400 18
Station Casinos, Inc. * ......................... 1,000 25
Ticketmaster Online-CitySearch, Inc. - Cl. B * .. 300 5
Trendwest Resorts, Inc. * ....................... 800 13
--------
291
Machinery - 1.6%
Advanced Energy Industries, Inc. * .............. 400 24
Applied Industrial Technologies, Inc. ........... 1,800 29
Applied Power, Inc. ............................. 900 30
FMC Corp. * ..................................... 500 29
Kennametal, Inc. ................................ 700 15
Kulicke and Soffa Industries * .................. 400 24
Stewart & Stevenson Services, Inc. .............. 2,200 33
Tecumseh Products Co. - Cl. A ................... 800 31
Thermo Electron Corp. * ......................... 1,300 27
Zebra Technologies Corp. - Cl. A * .............. 400 18
--------
260
Media - Publishing - 0.7%
McClatchy Newspapers, Inc. - Cl. A .............. 1,400 46
Pulitzer, Inc. .................................. 900 38
Scholastic Corp. * .............................. 500 31
Ziff-Davis, Inc. - ZD * ......................... 800 7
--------
122
Media - TV / Radio - 1.9%
A.H. Belo Corp. ................................. 1,700 29
BHC Communications, Inc. - Cl. A * .............. 500 76
Chris-Craft Industries , Inc. ................... 700 46
Emmis Communications Corp. ...................... 1,100 46
Entercom Communications Corp. * ................. 800 39
Hispanic Broadcasting Corp. * ................... 800 27
NBC Internet, Inc. - Cl. A * .................... 300 4
Primedia, Inc. .................................. 800 18
Westwood One, Inc. * ............................ 800 27
--------
312
Metal Product and Fabrication - 0.5%
Commercial Metals Co. ........................... 1,200 33
Timken Co. ...................................... 1,300 24
Worthington Industries, Inc. .................... 1,700 18
--------
75
Metals and Mining - 0.3%
Precision Castparts Corp. ....................... 1,200 54
Natural Gas Distribution - 0.9%
National Fuel Gas Co. ........................... 1,700 83
Peoples Energy Corp. ............................ 800 26
UGI Corp. ....................................... 1,600 33
--------
142
Oil - Equipment and Services - 1.2%
BJ Services Co. * ............................... 1,100 69
Hanover Compressor Co. * ........................ 800 30
Smith International, Inc. ....................... 400 29
Tidewater, Inc. ................................. 1,000 36
Weatherford International, Inc. * ............... 800 32
--------
196
Oil and Natural Gas Exploration and Production - 4.3%
Devon Energy Corp. * ............................ 700 39
ENSCO International, Inc. * ..................... 1,000 36
Global Marine, Inc. * ........................... 1,000 28
Helmerich & Payne, Inc. ......................... 1,800 67
Kinder Morgan, Inc. ............................. 1,100 38
Mitchell Energy & Development Corp. - Cl. A ..... 700 23
Murphy Oil Corp. ................................ 700 42
Nabors Industries, Inc. * ....................... 900 38
Noble Affiliates, Inc. .......................... 1,000 37
Noble Drilling Corp. * .......................... 1,100 45
Ocean Energy, Inc. * ............................ 1,800 26
Patterson Energy, Inc. * ........................ 700 20
Pride International, Inc. * ..................... 700 17
R&B Falcon Corp. ................................ 1,300 31
RadiSys Corp. ................................... 200 11
Rowan Cos., Inc. * .............................. 1,100 34
Tom Brown, Inc. ................................. 1,100 25
Ultramar Diamond Shamrock Corp. ................. 3,100 77
Union Pacific Resources Group, Inc. ............. 2,100 46
Vintage Petroleum, Inc. ......................... 900 20
Western Gas Resources, Inc. ..................... 800 17
--------
717
Paper and Forest Products - 0.8%
Boise Cascade Corp. ............................. 1,100 29
Rayonier, Inc. .................................. 500 18
Temple-Inland, Inc. ............................. 600 25
United Stationers, Inc. * ....................... 900 29
Westvaco Corp. .................................. 1,400 35
--------
136
Personal and Commercial Lending - 0.2%
Metris Cos., Inc. ............................... 1,077 27
138
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Personal and Commercial Lending - Continued
SierraCities.com, Inc. * .......................... 600 $ 2
--------
29
Precious Metals/Gems/Stones - 0.6%
Freeport-McMoRan Copper & Gold, Inc. - Cl. B ...... 2,400 22
Homestake Mining Co. .............................. 3,900 27
Newmont Mining Corp. .............................. 1,700 37
Stillwater Mining Co. * ........................... 300 8
--------
94
Real Estate Development - 0.2%
Ryland Group, Inc. ................................ 800 18
Standard Pacific Corp. ............................ 1,400 14
--------
32
Real Estate Investment Trust - 4.5%
AMLI Residential Properties Trust ................. 1,000 23
Arden Realty Group, Inc. .......................... 2,300 54
Avalonbay Communities, Inc. ....................... 1,300 54
Boston Properties, Inc. ........................... 1,700 66
Duke Realty Investments, Inc. ..................... 2,400 54
First Industrial LP * ............................. 800 24
General Growth Properties ......................... 1,700 54
Highwoods Properties, Inc. ........................ 2,400 58
International Rectifier Corp. * ................... 800 45
Kimco Realty Corp. ................................ 1,100 45
Liberty Property Trust ............................ 2,400 62
Mack-Cali Realty Corp. ............................ 2,100 54
Public Storage, Inc. .............................. 1,800 42
Spieker Properties, Inc. .......................... 1,400 64
Vornado Realty Trust .............................. 1,500 52
--------
751
Real Estate Operations - 0.2%
M.D.C. Holdings, Inc. ............................. 1,800 34
Retail - Department Stores - 2.5%
Barnes & Noble, Inc. * ............................ 1,100 24
BarnesandNoble.com, Inc. * ........................ 100 1
Cato Corp. - Cl. A ................................ 1,300 15
Copper Mountain Networks, Inc. * .................. 100 9
Dollar Thrifty Automotive Group, Inc. * ........... 1,300 24
Handleman Co. ..................................... 1,700 21
Haverty Furniture Co., Inc. ....................... 1,500 13
InterTAN, Inc. * .................................. 1,250 15
JLK Direct Distribution, Inc. - Cl. A * ........... 2,500 13
Michaels Stores, Inc. * ........................... 800 37
MSC Industrial Direct Co., Inc. - Cl. A ........... 700 15
Neiman Marcus Group, Inc. - Cl. A ................. 900 27
Pacific Sunwear of California, Inc. * ............. 800 15
Petco Animal Supplies, Inc. * ..................... 1,000 20
Pier 1 Imports, Inc. .............................. 1,700 17
Ross Stores, Inc. ................................. 800 14
Shopko Stores, Inc. ............................... 800 12
Spiegel, Inc. - Cl. A ............................. 1,700 14
Tiffany & Co. ..................................... 700 47
Tweeter Home Entertainment Group, Inc. ............ 400 12
USinternetworking, Inc. * ......................... 250 5
Value City Department Stores, Inc. * .............. 1,500 14
Zale Corp. * ...................................... 700 25
--------
409
Retail - Food - 0.8%
Brinker International, Inc. * ..................... 1,200 35
Charming Shoppes, Inc. * .......................... 1,200 6
Darden Restaurants, Inc. .......................... 1,500 24
Landry's Seafood Restaurants, Inc. * .............. 1,000 9
RARE Hospitality International, Inc. * ............ 900 25
Ryan's Family Steak Houses, Inc. * ................ 1,200 10
The Great Atlantic & Pacific Tea Co., Inc. ........ 1,000 17
--------
126
Shoe and Apparel Manufacturing - 0.3%
Liz Claiborne, Inc. ............................... 600 21
Timberland Co. - Cl. A * .......................... 300 21
--------
42
Steel - 0.1%
USX-U.S. Steel Group, Inc. ........................ 1,000 19
Telecommunication Equipment - 5.2%
ADC Telecommunications, Inc. * .................... 258 22
ADTRAN, Inc. * .................................... 300 18
Advanced Fibre Communications, Inc. * ............. 800 36
American Tower Corp. - Cl. A ...................... 1,000 42
Andrew Corp. * .................................... 700 23
Cable Design Technologies Corp. ................... 700 23
CIENA Corp. * ..................................... 1,100 183
Covad Communications Group, Inc. * ................ 1,000 16
Crown Castle International Corp. .................. 1,000 36
Digital Microwave Corp. ........................... 500 19
E-Tek Dynamics, Inc. * ............................ 300 79
Harmonic, Inc. * .................................. 417 10
InterDigital Communications Corp. * ............... 300 5
Polycom, Inc. * ................................... 200 19
Powertel, Inc. .................................... 500 35
Powerwave Technologies, Inc. * .................... 400 18
Proxim, Inc. * .................................... 200 20
RF Micro Devices, Inc. * .......................... 400 35
Scientific-Atlanta, Inc. .......................... 1,400 104
Symbol Technologies, Inc. ......................... 975 53
Terayon Communication Systems, Inc. * ............. 400 26
TriQuint Semiconductor, Inc. * .................... 300 29
Tut Systems, Inc. ................................. 100 6
World Access, Inc. * .............................. 600 7
--------
864
Telecommunication Services - 3.3%
Allegiance Telecom, Inc. * ........................ 1,100 70
139
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP CORE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Telecommunication Services - Continued
Aspect Communications Corp. * ....................... 600 $ 24
Broadwing, Inc. ..................................... 2,000 52
Centennial Cellular Corp. - A Shares * .............. 1,000 14
Citizens Communications Co. ......................... 4,400 76
COMSAT Corp. ........................................ 1,100 27
Cost Plus, Inc. * ................................... 600 17
Greif Bros. Corp. - Cl. A ........................... 900 28
IDT Corp. * ......................................... 200 7
Leap Wireless International, Inc. * ................. 500 23
MasTec, Inc. * ...................................... 450 17
McLeodUSA, Inc. - Cl. A * ........................... 3,400 70
Metricom, Inc. * .................................... 200 6
RCN Corp. * ......................................... 300 8
TALK.com, Inc. * .................................... 400 2
Time Warner Telecom, Inc. - Cl. A * ................. 300 19
Travelocity.com * ................................... 200 3
US LEC Corp. - Cl. A * .............................. 400 7
VoiceStream Wireless Corp. * ........................ 334 39
West TeleServices Corp. * ........................... 800 20
Winstar Communications, Inc. * ...................... 700 24
-------
553
Telephone - 0.7%
NEXTLINK Communications, Inc. * ..................... 515 20
Telephone and Data Systems, Inc. .................... 1,000 100
-------
120
Transportation Services - 1.3%
America West Hol dings Corp. - Cl. B * .............. 1,400 24
American Freightways Corp. * ........................ 1,700 25
CNF Transportation, Inc. ............................ 900 20
Covenant Transport, Inc. - Cl. A .................... 1,100 9
Roadway Express, Inc. ............................... 1,200 28
Ryder System, Inc. .................................. 1,000 19
UAL Corp. ........................................... 900 52
USFreightways Corp. ................................. 1,000 25
Yellow Corp. * ...................................... 1,300 19
-------
221
-------
TOTAL COMMON STOCK- 99.1% 16,377
Receivables, less Cash and payables- 0.9% 145
------ -------
NET ASSETS- 100.0% 16,522
====== =======
* Non-income producing security.
See notes to financial statements.
140
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Brokerage and Investment Management - 1.0%
Franklin Resources, Inc. ................... 3,400 $ 103
Business Services - 2.2%
H & R Block, Inc. .......................... 6,000 194
Manpower, Inc. ............................. 1,100 35
-------
229
Chemicals - 6.1%
Agrium, Inc. ............................... 4,000 35
Crompton Corp. ............................. 3,300 41
Eastman Chemical Co. ....................... 3,400 162
Geon Co. ................................... 6,400 118
IMC Global, Inc. ........................... 14,300 186
Solutia, Inc. .............................. 3,000 41
Wellman, Inc. .............................. 2,700 44
-------
627
Commercial Services - 2.5%
Informix Corp. * ........................... 30,550 227
Quintiles Transnational Corp. * ........... 2,300 33
-------
260
Computer Equipment - 9.6%
3Com Corp. * ............................... 2,800 161
Adaptec, Inc. * ........................... 9,000 205
Maxtor Corp. * ............................. 15,300 162
Quantum Corp. - DLT & Storage * ............ 18,700 181
Quantum Corp. - Hard Disk Drive * .......... 7,700 85
Tech Data Corp. * .......................... 4,300 187
-------
981
Computer Software and Services - 11.7%
Cabletron Systems, Inc. * .................. 7,300 184
Computer Associates International, Inc. .... 597 31
J.D. Edwards & Co. * ....................... 8,000 120
Keane, Inc. * .............................. 8,200 177
MarchFirst, Inc. * ......................... 4,800 88
NCR Corp. * ................................ 5,100 199
Parametric Technology Corp. * .............. 24,600 271
Unisys Corp. * ............................. 8,800 128
-------
1,198
Consumer - Miscellaneous - 2.6%
Black & Decker Corp. ....................... 2,500 98
Ingram Micro, Inc. - Cl. A * ............... 9,500 166
-------
264
Electrical Equipment - 0.2%
UCAR International, Inc. * ................. 1,600 21
Electronic Products and Services - 6.8%
Actel Corp. * .............................. 500 23
Arrow Electronics, Inc. * .................. 5,100 158
Artesyn Technologies, Inc. ................. 1,600 44
Avnet, Inc. ................................ 3,900 231
Electronics for Imaging, Inc. * ............ 5,000 127
General Semiconductor, Inc. ................ 4,200 62
Polaroid Corp. ............................. 2,800 51
-------
696
Engineering and Construction - 2.0%
Fluor Corp. ................................ 6,500 206
Financial Services - 3.2%
Heller Financial, Inc. ..................... 6,600 135
Knight Trading Group, Inc. * ............... 6,400 191
-------
326
Food, Beverage and Tobacco - 0.6%
Dean Foods Co. ............................. 900 29
Tyson Foods, Inc. - Cl. A .................. 3,200 28
-------
57
Health Care Products - 1.2%
Mylan Laboratories, Inc. ................... 6,800 124
Health Care Services - 2.8%
HEALTHSOUTH Corp. * ........................ 8,000 58
McKesson HBOC, Inc. ........................ 11,100 232
-------
290
Insurance - 7.0%
Ace, Ltd. * ................................ 6,500 182
Everest Re Group, Ltd. ..................... 5,800 191
Nationwide Financial Services - Cl. A ...... 5,000 164
XL Capital, Ltd. - Cl. A ................... 3,400 184
-------
721
Machinery - 3.4%
Applied Power, Inc. ........................ 1,700 57
Deere & Co. ................................ 2,100 78
Flowserve Corp. ............................ 1,500 23
Thermo Electron Corp. * .................... 8,800 185
-------
343
Media - Publishing - 0.6%
Ziff-Davis, Inc. - ZD * .................... 6,400 58
Media - TV / Radio - 0.9%
Emmis Communications Corp. ................. 2,300 95
Metals and Mining - 0.6%
Phelps Dodge Corp. ......................... 1,500 56
Oil - 0.6%
Varco International, Inc. * ................ 2,600 60
Oil - Equipment and Services - 5.3%
Anadarko Petroleum Corp. ................... 1,300 64
Baker Hughes, Inc. ......................... 4,400 141
Petroleum Geo-Services ASA * ............... 5,600 95
Tidewater, Inc. ............................ 6,600 238
-------
538
141
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL/MID CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Oil and Natural Gas Exploration and Production - 7.2%
Burlington Resources, Inc. ........... 4,100 $ 157
EOG Resources, Inc. .................. 2,000 67
Noble Affiliates, Inc. ............... 4,900 183
Ocean Energy, Inc. * ................. 4,300 61
Santa Fe Snyder Corp. * ............. 12,700 144
Union Pacific Resources Group, Inc. .. 5,600 123
------
735
Paper and Forest Products - 4.1%
Abitibi-Consolidated, Inc. ........... 12,700 119
Fort James Corp. ..................... 6,100 141
Georgia-Pacific Corp. ................ 1,700 45
Jefferson Smurfit Group plc - ADR .... 6,600 116
------
421
Pollution Control - 0.9%
Waste Management, Inc. ............... 4,700 89
Retail - Department Stores - 6.6%
Abercrombie & Fitch Co. * ............ 8,200 100
AnnTaylor Stores Corp. * ............. 1,000 33
Burlington Coat Factory Warehouse
Corp. ............................... 1,800 19
Consolidated Stores Corp. * .......... 8,500 102
Federated Department Stores, Inc. * .. 2,900 98
OfficeMax, Inc. ...................... 7,700 39
Shopko Stores, Inc. .................. 2,300 35
Toys "R" Us, Inc. * .................. 5,000 73
Venator Group, Inc. .................. 16,900 173
------
672
Retail - Food - 1.5%
Tricon Global Restaurants, Inc. * .... 5,600 158
Shoe and Apparel Manufacturing - 3.5%
Jones Apparel Group, Inc. * .......... 8,200 193
Liz Claiborne, Inc. .................. 2,000 70
Nike, Inc. - Cl. B ................... 2,500 100
------
363
Steel - 0.4%
AK Steel Holding Corp. ............... 5,301 42
Telecommunication Equipment - 0.5%
Allen Telecom, Inc. .................. 2,900 51
Transportation Services - 2.2%
Kansas City Southern Industries,
Inc. ................................ 2,100 186
Yellow Corp. * ....................... 2,700 40
------
226
------
TOTAL COMMON STOCK- 97.8% 10,010
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 4.4%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 .................. $ 454 $ 454
------- -------
TOTAL INVESTMENTS- 102.2% 10,464
Payables, less cash and receivables- (2.2)% (225)
------- -------
NET ASSETS- 100.0% 10,239
======= =======
* Non-income producing security.
See notes to financial statements.
142
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
REAL ESTATE EQUITY PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Real Estate Development - 3.1%
Catellus Development Corp. * ............... 300,000 $ 4,500
Real Estate Investment Trust - 92.5%
AMB Property Corp. ......................... 120,000 2,737
Archstone Communities Trust ................ 188,800 3,977
Avalonbay Communities, Inc. ................ 146,246 6,106
Boston Properties, Inc. .................... 121,000 4,674
Brandywine Realty Trust .................... 115,400 2,207
BRE Properties, Inc. ....................... 87,000 2,512
Camden Property Trust ...................... 58,772 1,726
Camden Property Trust ...................... 67,500 1,983
CarrAmerica Realty Corp. ................... 130,000 3,445
CBL & Associates Properties, Inc. .......... 118,400 2,953
Centerpoint Properties Corp. ............... 38,900 1,585
Charles E. Smith Residential Realty, Inc. .. 61,600 2,341
Chateau Communities, Inc. .................. 123,000 3,475
Cousins Properties, Inc. ................... 103,000 3,965
Developers Diversified Realty Corp. ........ 215,000 3,212
Duke Realty Investments, Inc. .............. 215,078 4,812
Equity Office Properties Trust ............. 305,694 8,426
Equity Residential Properties Trust ........ 139,500 6,417
FelCor Lodging Trust, Inc. ................. 80,400 1,487
Franchise Finance Corp. of America ......... 55,000 1,265
Highwoods Properties, Inc. ................. 100,000 2,400
Home Properties of New York, Inc. .......... 50,400 1,512
JP Realty, Inc. ............................ 115,000 2,048
Kilroy Realty Corp. ........................ 103,700 2,690
Kimco Realty Corp. ......................... 100,000 4,100
Liberty Property Trust ..................... 175,000 4,539
Mack-Cali Realty Corp. ..................... 125,000 3,211
MeriStar Hospitality Corp. ................. 186,100 3,908
Pacific Gulf Properties, Inc. .............. 64,600 1,619
Post Properties, Inc. ...................... 114,700 5,047
Prentiss Properties Trust .................. 158,300 3,799
Prologis Trust ............................. 204,060 4,349
Public Storage, Inc. ....................... 135,000 3,164
Reckson Associates Realty Corp. ............ 58,600 1,392
Regency Realty Corp. ....................... 100,900 2,396
Simon Property Group, Inc. ................. 220,400 4,890
Spieker Properties, Inc. ................... 127,100 5,847
Storage USA, Inc. .......................... 91,000 2,685
Vornado Realty Trust ....................... 110,000 3,822
--------
132,723
Real Estate Operations - 1.9%
Rouse Co. .................................. 110,800 2,742
--------
TOTAL COMMON STOCK- 97.5% 139,965
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 2.3%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 ................... $ 3,369 $ 3,369
--------- --------
TOTAL INVESTMENTS- 100.0% 143,591
Payables, less cash and receivables- 0.0% (19)
--------- --------
NET ASSETS- 100.0% 143,572
========= ========
* Non-income producing security.
See notes to financial statements.
143
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.8%
General Dynamics Corp. ............................ 510,600 $ 26,679
Honeywell International, Inc. ..................... 482,800 16,264
United Technologies Corp. ......................... 491,100 28,914
--------
71,857
Auto and Truck Parts - 0.5%
General Motors Corp. - Cl. H ...................... 103,900 9,117
Lear Corp. * ...................................... 467,700 9,354
Visteon Corp. * ................................... 92,491 1,122
--------
19,593
Automobile - 0.8%
Ford Motor Co. .................................... 706,400 30,375
Banks - 2.5%
AmSouth Bancorporation ............................ 396,000 6,237
Comerica, Inc. .................................... 213,700 9,590
FleetBoston Financial Corp. ....................... 1,523,500 51,799
J.P. Morgan & Co., Inc. ........................... 215,900 23,776
Suntrust Banks, Inc. .............................. 185,000 8,452
--------
99,854
Business Services - 0.4%
Automatic Data Processing, Inc. ................... 271,100 14,521
Chemicals - 1.7%
Air Products & Chemicals, Inc. .................... 463,100 14,269
Dow Chemical Co. .................................. 1,590,900 48,025
E.I. du Pont de Nemours & Co. ..................... 128,700 5,631
--------
67,925
Commercial Services - 1.2%
Interpublic Group Cos., Inc. ...................... 539,500 23,198
Omnicom Group, Inc. ............................... 278,700 24,822
--------
48,020
Computer Equipment - 9.0%
Compaq Computer Corp. ............................. 613,300 15,677
Comverse Technology, Inc. * ....................... 136,500 12,695
Dell Computer Corp. * ............................. 883,800 43,582
Hewlett-Packard Co. ............................... 362,900 45,317
Intel Corp. ....................................... 1,091,100 145,866
International Business Machines Corp. ............. 617,100 67,611
Network Appliance, Inc. * ......................... 91,300 7,350
VERITAS Software Corp. * .......................... 159,100 17,981
--------
356,079
Computer Software and Services - 10.9%
America Online, Inc. * ............................ 691,700 36,487
Electronic Data Systems Corp. ..................... 220,800 9,108
EMC Corp. * ....................................... 512,600 39,438
First Data Corp. .................................. 971,200 48,196
Intuit, Inc. * .................................... 213,300 8,825
Microsoft Corp. ................................... 1,677,500 134,200
Oracle Corp. * .................................... 1,026,400 86,282
Sun Microsystems, Inc. * .......................... 440,500 40,058
Yahoo!, Inc. * .................................... 204,000 25,271
--------
427,865
Consumer - Miscellaneous - 1.3%
Avery Dennison Corp. .............................. 233,000 15,640
Black & Decker Corp. .............................. 644,500 25,337
Sherwin-Williams Co. .............................. 465,900 9,871
--------
50,848
Cosmetics and Personal Care Products - 0.4%
Colgate-Palmolive Co. ............................. 126,000 7,544
Procter & Gamble Co. .............................. 126,400 7,237
--------
14,781
Diversified Operations - 6.7%
Corning, Inc. ..................................... 56,300 15,194
Danaher Corp. ..................................... 116,900 5,779
El Paso Energy Corp. .............................. 425,200 21,659
General Electric Co. .............................. 2,835,600 150,287
Illinois Tool Works, Inc. ......................... 220,600 12,574
Textron, Inc. ..................................... 396,100 21,513
Tyco International, Ltd. .......................... 790,000 37,426
--------
264,432
Electric Power - 2.7%
Ameren Corp. ...................................... 161,000 5,434
Dominion Resources, Inc. .......................... 580,400 24,885
Duke Energy Co. ................................... 819,400 46,194
Reliant Energy, Inc. .............................. 970,100 28,678
--------
105,191
Electronic Products and Services - 8.3%
Agilent Technologies, Inc. * ...................... 138,410 10,208
Altera Corp. * .................................... 159,100 16,218
Analog Devices, Inc. * ............................ 163,900 12,456
Applied Materials, Inc. * ......................... 239,900 21,741
Applied Micro Circuits Corp. * .................... 37,400 3,693
Cisco Systems, Inc. * ............................. 2,430,600 154,495
Linear Technology Corp. ........................... 202,900 12,973
Maxim Integrated Products, Inc. * ................. 141,800 9,634
Motorola, Inc. .................................... 696,000 20,227
Solectron Corp. * ................................. 207,900 8,706
Teradyne, Inc. * .................................. 98,300 7,225
Texas Instruments, Inc. ........................... 566,900 38,939
Xilinx, Inc. * .................................... 121,700 10,048
--------
326,563
Financial Services - 4.7%
Associates First Capital Corp. - Cl. A * .......... 403,200 8,996
Citigroup, Inc. ................................... 2,528,800 152,360
Mellon Financial Corp. ............................ 659,700 24,038
--------
185,394
144
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Food, Beverage and Tobacco - 1.9%
Anheuser-Busch Cos., Inc. ......................... 177,900 $ 13,287
Philip Morris Cos., Inc. .......................... 893,800 23,741
Quaker Oats Co. ................................... 218,100 16,385
Sara Lee Corp. .................................... 81,100 1,566
Seagram Co., Ltd. ................................. 217,900 12,638
UST, Inc. ......................................... 613,700 9,014
---------
76,631
Health Care Products - 14.7%
Allergan, Inc. .................................... 379,300 28,258
American Home Products Corp. ...................... 439,000 25,791
Bausch & Lomb, Inc. ............................... 172,200 13,324
Bristol-Myers Squibb Co. .......................... 1,484,600 86,478
Eli Lilly & Co. ................................... 297,400 29,703
Johnson & Johnson ................................. 269,900 27,496
Merck & Co., Inc. ................................. 801,200 61,392
Pfizer, Inc. ...................................... 4,076,300 195,662
Pharmacia Corp. ................................... 973,500 50,318
Schering-Plough Corp. ............................. 1,228,800 62,054
---------
580,476
Insurance - 5.4%
American General Corp. ............................ 435,300 26,553
Aon Corp. ......................................... 655,000 20,346
AXA Financial, Inc. ............................... 811,500 27,591
Cigna Corp. ....................................... 414,400 38,746
Hartford Financial Services Group, Inc. ........... 469,800 26,280
Lincoln National Corp. ............................ 641,100 23,160
Marsh & McLennan Cos., Inc. ....................... 340,100 35,519
St. Paul Cos., Inc. ............................... 455,100 15,530
---------
213,725
Machinery - 0.5%
Ingersoll-Rand Co. ................................ 495,100 19,928
Media - Publishing - 0.7%
AT&T Corp. - Liberty Media Group - Cl. A * ........ 1,077,300 26,125
Media - TV / Radio - 2.4%
Infinity Broadcasting Corp. - Cl. A * ............. 436,600 15,908
Time Warner, Inc. ................................. 433,800 32,969
Viacom, Inc. - Cl. B * ............................ 646,800 44,104
---------
92,981
Oil - 1.1%
Royal Dutch Petroleum Co. - NY Shares ............. 687,600 42,330
Oil and Natural Gas Exploration and Production - 3.7%
Chevron Corp. ..................................... 275,800 23,391
Exxon Mobil Corp. ................................. 1,125,500 88,352
Kerr-McGee Corp. .................................. 364,700 21,495
USX-Marathon Group ................................ 436,400 10,937
---------
144,175
Paper and Forest Products - 0.5%
Kimberly-Clark Corp. .............................. 191,000 10,959
Willamette Industries, Inc. ....................... 296,900 8,090
---------
19,049
Personal and Commercial Lending - 0.4%
MBNA Corp. ........................................ 619,400 16,801
Retail - Department Stores - 5.7%
Federated Department Stores, Inc. * ............... 330,500 11,154
Gap, Inc. ......................................... 1,744,000 54,500
Home Depot, Inc. .................................. 893,800 44,634
Limited, Inc. ..................................... 629,800 13,620
Lowe's Cos., Inc. ................................. 249,500 10,245
RadioShack Corp. .................................. 45,400 2,151
Target Corp. ...................................... 108,200 6,276
TJX Cos., Inc. .................................... 1,092,900 20,492
Wal-Mart Stores, Inc. ............................. 1,043,300 60,120
---------
223,192
Telecommunication Equipment - 3.4%
ADC Telecommunications, Inc. * .................... 210,800 17,681
JDS Uniphase Corp. * .............................. 70,600 8,463
Lucent Technologies, Inc. ......................... 750,000 44,438
Nortel Networks Corp. ............................. 923,800 63,049
RF Micro Devices, Inc. * .......................... 29,600 2,594
---------
136,225
Telecommunication Services - 2.4%
Clear Channel Communications, Inc.* ............... 161,300 12,097
Sprint PCS (PCS Group) * .......................... 522,800 31,107
WorldCom, Inc. * .................................. 1,131,300 51,898
---------
95,102
Telephone - 2.7%
Alltel Corp. ...................................... 90,200 5,587
AT&T Wireless Group * ............................. 423,600 11,808
Bell Atlantic Corp. ............................... 354,800 18,028
SBC Communications, Inc. .......................... 971,000 41,996
Sprint Corp. ...................................... 545,000 27,795
---------
105,214
Transportation Services - 0.5%
Kansas City Southern Industries, Inc. ............. 137,900 12,230
UAL Corp. ......................................... 105,800 6,156
---------
18,386
U.S. Government Agencies - 1.1%
Federal National Mortgage Assoc. .................. 828,600 43,243
---------
TOTAL COMMON STOCK- 98.5% 3,936,881
145
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
Par Market
Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 1.4%
Investment in joint trading
account (Note B)
6.853% due 07/03/00 ...... $ 56,430 $ 56,430
------------ ------------
TOTAL INVESTMENTS- 99.9% 3,993,311
Receivables, less Cash
and payables- 0.1% 2,947
------------ ------------
NET ASSETS- 100.0% 3,996,258
============ ============
* Non-income producing secruity.
See notes to financial statements.
146
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.2%
Boeing Co. (US) ....................... 129,000 $ 5,394
General Dynamics Corp. (US) ........... 199,700 10,434
Honeywell International, Inc.
(US) ................................. 254,200 8,563
United Technologies Corp. (US) ........ 236,500 13,924
---------
38,315
Auto and Truck Parts - 0.3%
General Motors Corp. (US) ............. 111,500 6,474
Lear Corp. (US) ....................... 173,700 3,474
Visteon Corp. (US) .................... 41,781 506
---------
10,454
Automobile - 0.6%
Ford Motor Co. (US) ................... 319,100 13,721
General Motors Corp. - Cl. H
(US) ................................. 48,000 4,212
---------
17,933
Banks - 1.7%
AmSouth Bancorporation (US) ........... 300,000 4,725
Comerica, Inc. (US) ................... 273,600 12,278
FleetBoston Financial Corp. (US) ...... 706,000 24,004
J.P. Morgan & Co., Inc. (US) .......... 113,700 12,521
---------
53,528
Business Services - 0.1%
Automatic Data Processing, Inc.
(US) ................................. 41,700 2,234
Chemicals - 0.8%
Air Products & Chemicals, Inc.
(US) ................................. 219,800 6,773
Dow Chemical Co. (US) ................. 603,000 18,203
---------
24,976
Commercial Services - 0.7%
Interpublic Group Cos., Inc.
(US) ................................. 183,300 7,882
Omnicom Group, Inc. (US) .............. 119,000 10,598
R.R. Donnelley & Sons Co. (US) ........ 204,500 4,614
---------
23,094
Computer Equipment - 5.4%
Compaq Computer Corp. (US) ............ 331,500 8,474
Comverse Technology, Inc. (US) ........ 55,000 5,115
Dell Computer Corp. (US) .............. 386,900 19,079
Hewlett-Packard Co. (US) .............. 176,100 21,990
Intel Corp. (US) ...................... 527,100 70,467
International Business Machines
Corp. (US) ........................... 308,800 33,833
Network Appliance, Inc. (US) .......... 61,300 4,934
VERITAS Software Corp. (US) ........... 76,200 8,612
---------
172,504
Computer Software and Services - 6.7%
America Online, Inc. (US) ............. 343,200 18,104
Electronic Data Systems Corp.
(US) ................................. 406,100 16,752
EMC Corp. (US) ........................ 281,700 21,673
First Data Corp. (US) ................. 443,000 21,984
Intuit, Inc. (US) ..................... 120,000 4,965
Microsoft Corp. (US) .................. 790,500 63,240
Oracle Corp. (US) ..................... 481,200 40,451
Sun Microsystems, Inc. (US) ........... 196,400 17,860
Yahoo!, Inc. (US) ..................... 98,200 12,164
---------
217,193
Consumer - Miscellaneous - 0.5%
Avery Dennison Corp. (US) ............. 104,500 7,014
Black & Decker Corp. (US) ............. 223,000 8,767
---------
15,781
Cosmetics and Personal Care Products - 0.5%
Avon Products, Inc. (US) .............. 124,000 5,518
Colgate-Palmolive Co. (US) ............ 92,400 5,533
Procter & Gamble Co. (US) ............. 105,400 6,034
---------
17,085
Diversified Operations - 4.5%
Corning, Inc. (US) .................... 39,100 10,552
El Paso Energy Corp. (US) ............. 195,800 9,974
General Electric Co. (US) ............. 1,524,600 80,804
Illinois Tool Works, Inc. (US) ........ 118,900 6,777
Minnesota Mining & Manufacturing
Co. (US) ............................. 112,000 9,240
Reynol ds & Reynol ds Co. - Cl.
A (US) ............................... 178,100 3,250
Textron, Inc. (US) .................... 138,600 7,528
Tyco International, Ltd. (BM) ......... 373,000 17,671
---------
145,796
Electric Power - 1.6%
Ameren Corp. (US) ..................... 201,400 6,797
Dominion Resources, Inc. (US) ......... 122,400 5,248
Duke Energy Co. (US) .................. 341,000 19,224
Pinnacle West Capital Corp. (US) ...... 218,900 7,415
Reliant Energy, Inc. (US) ............. 483,500 14,294
---------
52,978
Electronic Products and Services - 5.0%
Agilent Technologies, Inc. (US) ....... 67,164 4,953
Analog Devices, Inc. (US) ............. 86,300 6,559
Applied Materials, Inc. (US) .......... 113,900 10,322
Cisco Systems, Inc. (US) .............. 1,142,700 72,633
Lam Research Corp. (US) ............... 140,000 5,250
Maxim Integrated Products, Inc.
(US) ................................. 87,800 5,965
Motorola, Inc. (US) ................... 338,700 9,843
Pitney Bowes, Inc. (US) ............... 123,000 4,920
SCI Systems, Inc. (US) ................ 119,200 4,671
Solectron Corp. (US) .................. 178,000 7,454
Teradyne, Inc. (US) ................... 42,100 3,094
Texas Instruments, Inc. (US) .......... 268,200 18,422
Xilinx, Inc. (US) ..................... 63,800 5,268
---------
159,354
147
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Financial Services - 2.1%
Associates First Capital Corp. -
Cl. A (US) .......................... 200,000 $ 4,463
Citigroup, Inc. (US) ................. 935,900 56,388
Mellon Financial Corp. (US) .......... 166,100 6,052
---------
66,903
Food, Beverage and Tobacco - 1.1%
Anheuser-Busch Cos., Inc. (US) ....... 130,300 9,732
ConAgra, Inc. (US) ................... 212,400 4,049
PepsiCo, Inc. (US) ................... 153,600 6,825
Philip Morris Cos., Inc. (US) ........ 383,000 10,173
Quaker Oats Co. (US) ................. 78,800 5,920
---------
36,699
Health Care Products - 8.9%
Allergan, Inc. (US) .................. 124,600 9,283
American Home Products Corp.
(US) ................................ 250,000 14,688
Bausch & Lomb, Inc. (US) ............. 158,300 12,249
Baxter International, Inc. (US) ...... 65,400 4,598
Bristol-Myers Squibb Co. (US) ........ 536,000 31,222
Cardinal Health, Inc. (US) ........... 124,800 9,235
Eli Lilly & Co. (US) ................. 150,600 15,041
Johnson & Johnson (US) ............... 210,900 21,485
Merck & Co., Inc. (US) ............... 443,500 33,983
Pfizer, Inc. (US) .................... 2,011,900 96,571
Pharmacia Corp. (US) ................. 306,200 15,827
Schering-Plough Corp. (US) ........... 439,700 22,205
---------
286,387
Health Care Services - 0.2%
Wellpoint Health Networks, Inc.
(US) ................................ 89,100 6,454
Household Appliances / Furnishings - 0.1%
Leggett & Platt, Inc. (US) ........... 234,700 3,873
Insurance - 3.3%
American General Corp. (US) .......... 200,100 12,206
Aon Corp. (US) ....................... 267,900 8,322
AXA Financial, Inc. (US) ............. 523,800 17,809
Cigna Corp. (US) ..................... 197,900 18,504
Hartford Financial Services
Group, Inc. (US) .................... 230,300 12,882
Lincoln National Corp. (US) .......... 326,400 11,791
Marsh & McLennan Cos., Inc. (US) 142,100 14,840
XL Capital, Ltd. - Cl. A (BM) ....... 179,800 9,732
---------
106,086
Machinery - 0.3%
Ingersoll-Rand Co. (US) .............. 248,700 10,010
Media - Publishing - 0.2%
AT&T Corp. - Liberty Media Group
- Cl. A (US) ........................ 218,500 5,299
Media - TV / Radio - 1.2%
Infinity Broadcasting Corp. -
Cl. A (US) .......................... 160,300 5,841
Time Warner, Inc. (US) ............... 215,100 16,348
Viacom, Inc. - Cl. B (US) ............ 227,800 15,533
---------
37,722
Oil - 0.9%
Conoco, Inc. - Cl. A (US) ............ 179,800 3,956
Royal Dutch Petroleum Co. - NY
Shares (NL) ......................... 406,700 25,037
---------
28,993
Oil and Natural Gas Exploration and Production - 1.8%
BP Amoco plc - ADR (GB) .............. 30,200 1,708
Chevron Corp. (US) ................... 91,000 7,718
Exxon Mobil Corp. (US) ............... 537,400 42,186
Kerr-McGee Corp. (US) ................ 113,200 6,672
---------
58,284
Paper and Forest Products - 0.3%
Kimberly-Clark Corp. (US) ............ 102,400 5,875
Willamette Industries, Inc. (US) ..... 158,300 4,314
---------
10,189
Personal and Commercial Lending - 0.1%
MBNA Corp. (US) ...................... 70,900 1,923
Retail - Department Stores - 3.4%
Circuit City Stores, Inc. (US) ....... 59,800 1,985
Federated Department Stores,
Inc. (US) ........................... 251,500 8,488
Gap, Inc. (US) ....................... 404,000 12,625
Home Depot, Inc. (US) ................ 368,300 18,392
J.C. Penney Co., Inc. (US) ........... 250,000 4,609
Limited, Inc. (US) ................... 275,600 5,960
Lowe's Cos., Inc. (US) ............... 157,400 6,463
Target Corp. (US) .................... 115,000 6,670
TJX Cos., Inc. (US) .................. 460,200 8,629
Wal-Mart Stores, Inc. (US) ........... 617,800 35,601
---------
109,422
Steel - 0.2%
USX-U.S. Steel Group, Inc. (US) ...... 336,800 6,252
Telecommunication Equipment - 2.1%
ADC Telecommunications, Inc.
(US) ................................ 93,300 7,826
JDS Uniphase Corp. (US) .............. 48,600 5,826
Lucent Technologies, Inc. (US) ....... 391,900 23,220
Nortel Networks Corp. (CA) ........... 442,700 30,214
---------
67,086
Telecommunication Services - 1.7%
Clear Channel Communications,
Inc. (US) ........................... 119,500 8,962
Sprint PCS (PCS Group) (US) .......... 376,800 22,420
WorldCom, Inc. (US) .................. 540,400 24,791
---------
56,173
148
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Telephone - 1.6%
Bell Atlantic Corp. (US) ................ 216,600 $ 11,006
BellSouth Corp. (US) .................... 110,300 4,701
SBC Communications, Inc. (US) ........... 600,000 25,950
Sprint Corp. (US) ....................... 214,900 10,960
---------
52,617
Transportation Services - 0.3%
Kansas City Southern Industries,
Inc. (US) .............................. 53,700 4,763
Union Pacific Corp. (US) ................ 139,300 5,180
---------
9,943
U.S. Government Agencies - 0.6%
Federal National Mortgage Assoc.
(US) ................................... 355,400 18,547
---------
TOTAL COMMON STOCK- 60.0% 1,930,087
Par Market
Value Value
(000's) (000's)
CORPORATE BONDS
Financial Services - 0.1%
Citibank Credit Card Master
Trust I - Ser. 1998-6 Cl.A (US)
5.85% due 04/10/03 ..................... $ 5,500 5,436
Personal and Commercial Lending - 0.2%
Chase Manhattan Credit Card
Master Trust (US)
7.04% due 02/15/05 ..................... 4,000 3,993
MBNA Master Credit Card Trust (US)
6.6% due 11/15/04 ...................... 2,000 1,982
---------
5,975
---------
TOTAL CORPORATE BONDS- 0.3% 11,411
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.4%
Lockheed Martin Corp. (US)
6.85% due 05/15/01 ..................... 7,000 6,968
Lockheed Martin Corp. - Bonds (US)
8.5% due 12/01/29 ...................... 4,645 4,730
Raytheon Co. - Notes (US)
6.45% due 08/15/02 ..................... 2,290 2,236
---------
13,934
Automobile - 0.6%
Ford Motor Co. - Bonds (US)
6.625% due 10/01/28 .................... 16,155 13,637
General Motors (US)
1.25% due 12/20/04 ..................... 500,000 4,689
---------
18,326
Banks - 3.0%
Bank of America Corp. - Sub.
Notes (US)
7.8% due 02/15/10 ...................... 5,820 5,789
Banponce Financial Corp.
Mountain Bank Ent - Ser C. (US)
6.58% due 11/25/03 ..................... 11,040 10,701
Capital One Bank - Notes (US)
7.08% due 10/30/01 ..................... 2,950 2,924
Deutsche Augleichsbank (DE)
4.0% due 07/04/09 ...................... 6,000 5,038
Development Bank of Japan (JP)
1.75% due 06/21/10 ..................... 385,000 3,573
European Investment Bank - Notes (XU)
3.0% due 09/20/06 ...................... 620,000 6,428
European Investment Bank - Sr.
Unsub. (LU)
6.0% due 11/26/04 ...................... 1,350 2,019
European Investment Bank (XU)
8.75% due 08/25/17 ..................... 880 1,698
European Investor Bank (LU)
8.0% due 06/10/03 ...................... 1,000 1,569
International Bank of
Reconstruction & Development -
Notes (XU)
2.0% due 02/18/08 ...................... 1,170,000 11,456
International Bank of
Reconstruction & Development -
Debs. (XU)
4.5% due 03/20/03 ...................... 1,810,000 18,910
International Bank of
Reconstruction & Development -
Debs. (JP)
4.75% due 12/20/04 ..................... 450,000 4,940
International Bank of
Reconstruction & Development -
Debs. (XU)
9.25% due 07/20/07 ..................... 2,710 4,747
J.P. Morgan & Co., Inc. - Sr.
Notes (US)
5.75% due 02/25/04 ..................... 3,000 2,835
Korea Development Bank - Bonds (US)
7.125% due 09/17/01 .................... 4,600 4,560
Korea Development Bank - Notes (US)
7.125% due 04/22/04 .................... 8,300 8,026
---------
95,213
Brokerage and Investment Management - 0.3%
Lehman Brothers Holdings, Inc.
- Notes (US)
6.5% due 10/01/02 ...................... 7,455 7,274
6.625% due 04/01/04 .................... 3,000 2,864
---------
10,138
Business Services - 0.1%
Comdisco, Inc. - Notes (US)
5.95% due 04/30/02 ..................... 4,200 3,995
Computer Equipment - 0.1%
International Business Machines
Corp. - Notes (US)
5.625% due 04/12/04 .................... 2,870 2,735
149
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Diversified Operations - 0.5%
El Paso Energy Corp. - Sr. Notes (US)
6.625% due 07/15/01 ...................... $ 3,180 $ 3,145
Tyco International Group SA (LU)
6.125% due 06/15/01 ...................... 9,400 9,282
Tyco International, Ltd. - Notes (BM)
6.5% due 11/01/01 ........................ 5,000 4,971
--------
17,398
Electric Power - 0.1%
Ontario-Hydro (CA)
9.0% due 06/24/02 ........................ 4,150 2,951
Financial Services - 4.6%
Amresco Commercial Mortgage
Funding I - Ser. 1997-C1 Cl. A3 (US)
7.19% due 06/17/29 ....................... 6,980 6,881
Associates Corp. of North
America - Sr. Notes (US)
5.5% due 02/15/02 ........................ 4,000 3,885
Baden-Wurttemberg L-Finance BV (DE)
6.75% due 06/22/05 ....................... 9,500 4,845
Capital One Financial Corp. - Notes (US)
7.25% due 12/01/03 ....................... 10,000 9,648
Chase Commercial Mortgage
Securities Corp. - Ser. 1997-1
Cl. A2 (US)
7.37% due 02/19/07 ....................... 13,300 13,282
Contimortgage Home Equity Loan
Trust (US)
6.0% due 12/25/16 ........................ 15,000 14,709
Countrywide Funding Corp. (US)
7.0% due 10/25/23 ........................ 9,000 8,755
Finova Capital Corp. - Notes (US)
7.25% due 11/08/04 ....................... 2,310 2,035
Green Tree Financial Corp. (US)
6.68% due 01/15/29 ....................... 12,400 12,276
Green Tree Financial Corp. -
Ser. 1996-8 Cl. A6 (US)
7.6% due 10/15/27 ........................ 9,580 9,562
Household Finance Corp. - Sr. Notes (US)
5.125% due 06/24/09 ...................... 6,300 5,510
Household Finance Corp. - Notes (US)
7.875% due 03/01/07 ...................... 9,140 9,095
KFW International Finance - Debs. (US)
10.625% due 09/03/01 ..................... 500 787
Lehman Brothers Holdings - Notes (US)
7.75% due 01/15/05 ....................... 10,000 9,905
Mortgage Capital Funding, Inc. -
Ser. 1996 - MC2 Cl. A1 (US)
6.758% due 02/20/04 ...................... 7,324 7,220
PNC Funding Corp. - Sub. Notes (US)
7.5% due 11/01/09 ........................ 10,040 9,686
Residential Asset Securities Corp. (US)
6.11% due 05/25/24 ....................... 10,000 9,694
Salomon, Inc. - Sr. Notes (US)
7.2% due 02/01/04 ........................ 2,300 2,281
Southern Pacific Secured Assets Corp. (US)
6.27% due 03/25/19 ....................... 2,775 2,743
U.S. West Capital Funding, Inc. (US)
6.875% due 08/15/01 ...................... 6,265 6,235
--------
149,034
Food, Beverage and Tobacco - 0.1%
Philip Morris Cos., Inc. - Debs. (US)
8.25% due 10/15/03 ....................... 3,055 3,048
Foreign Governmental - 4.5%
Government of Canada - Debs. (CA)
9.75% due 06/01/21 ....................... 2,470 2,421
11.0% due 06/01/09 ....................... 2,830 2,579
12.0% due 03/01/05 ....................... 630 527
Government of France - Bonds (FR)
8.5% due 04/25/03 ........................ 7,300 7,576
9.5% due 01/25/01 ........................ 6,860 6,710
Government of Japan - Bonds (JP)
2.4% due 03/20/20 ........................ 840,000 8,219
Government of Netherlands - Bonds (NL)
6.5% due 04/15/03 ........................ 8,100 7,993
7.75% due 03/01/05 ....................... 10,700 11,252
Government of Sweden - Debs. (SE)
6.5% due 10/25/06 ........................ 9,700 1,168
6.75% due 05/05/14 ....................... 4,700 607
Government of Sweden - Bonds (SE)
10.25% due 05/05/03 ...................... 12,600 1,613
Hydro-Quebec - Bonds (CA)
10.875% due 07/25/01 ..................... 300 212
Kingdom of Denmark - Bonds (DK)
7.0% due 11/15/07 ........................ 5,000 687
7.0% due 11/10/24 ........................ 3,400 499
8.0% due 05/15/03 ........................ 11,860 1,599
9.0% due 11/15/00 ........................ 3,750 485
Kingdom of Spain - Notes (ES)
3.1% due 09/20/06 ........................ 1,280,000 13,244
Province of Ontario (CA)
7.75% due 06/04/02 ....................... 4,000 4,041
Province of Quebec - Debs. (CA)
7.5% due 07/15/23 ........................ 12,970 12,697
Province of Quebec - Debs (CA)
7.5% due 09/15/29 ........................ 9,030 8,855
Queensland Treasury Corp. - Bonds (AU)
6.5% due 06/14/05 ........................ 600 360
Queensland Treasury Corp. -
Global Notes (AU)
8.0% due 08/14/01 ........................ 525 320
Queensland Treasury Corp. (AU)
8.0% due 09/14/07 ........................ 1,395 910
150
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Foreign Governmental - Continued
Republic of Chile (US)
6.875% due 04/28/09 ....................... $ 3,795 $ 3,506
Republic of Italy - Notes (IT)
3.5% due 06/20/01 ......................... 800,000 7,784
Republic of Italy - Bonds (IT)
4.5% due 05/01/09 ......................... 5,500 4,869
Republic of Italy (XU)
6.0% due 08/04/28 ......................... 1,600 2,424
Republic of Italy - Debs. (IT)
8.5% due 01/01/04 ......................... 6,800 7,140
9.0% due 11/01/23 ......................... 11,130 14,687
10.5% due 04/28/14 ........................ 1,250 2,596
Treuhandanstalt (DE)
7.75% due 10/01/02 ........................ 6,410 6,469
---------
144,049
Health Care Products - 0.2%
Beckman Instruments, Inc. - Sr.
Notes (US)
7.1% due 03/04/03 ......................... 6,000 5,764
Health Care Services - 0.1%
Tenet Healthcare Corp. - Sr. Notes (US)
8.0% due 01/15/05 ......................... 4,900 4,716
Media - TV / Radio - 0.3%
Cox Communications, Inc. - Debs. (US)
6.8% due 08/01/28 ......................... 3,115 2,664
News America, Inc. - Debs. (US)
7.125% due 04/08/28 ....................... 2,640 2,221
Time Warner, Inc. - Notes (US)
8.18% due 08/15/07 ........................ 1,325 1,354
Viacom, Inc. - Sr. Notes (US)
7.75% due 06/01/05 ........................ 3,525 3,550
---------
9,789
Municipals - 0.2%
Tennessee Valley Authority - Bonds (US)
6.375% due 09/18/06 ....................... 11,000 5,583
Natural Gas Distribution - 0.4%
KN Energy, Inc. - Sr. Notes (US)
6.45% due 11/30/01 ........................ 7,555 7,420
6.45% due 03/01/03 ........................ 4,590 4,450
Williams Gas Pipeline Center -
Sr. Notes 144A (US)
7.375% due 11/15/06 ....................... 1,300 1,276
---------
13,146
Oil - 0.1%
Conoco, Inc. - Notes (US)
5.9% due 04/15/04 ......................... 2,000 1,905
Oil - Equipment and Services - 0.1%
Petroleum Geo-Services ASA - Sr.
Notes (NO)
7.125% due 03/30/28 ....................... 5,605 4,637
Oil and Natural Gas Exploration and Production - 0.2%
Amerada Hess Corp. - Bonds (US)
7.875% due 10/01/29 ....................... 1,790 1,757
Gulf Canada Resources, Ltd. -
Sr. Notes (CA)
8.35% due 08/01/06 ........................ 4,460 4,407
---------
6,164
Personal and Commercial Lending - 2.3%
CS First Boston Mortgage
Securities Corp. (US)
6.91% due 01/15/08 ........................ 7,852 7,707
EQCC Home Equity Loan Trust (US)
6.223% due 06/25/11 ....................... 9,300 9,144
Ford Motor Credit Co. (US)
1.2% due 02/07/05 ......................... 500,000 4,682
Ford Motor Credit Co. (LU)
5.25% due 06/16/08 ........................ 10,250 4,746
Ford Motor Credit Co. - Notes (US)
6.125% due 04/28/03 ....................... 3,000 2,888
General Motors Acceptance Corp. (US)
4.0% due 02/09/06 ......................... 6,800 5,805
General Motors Acceptance Corp.
- Bonds (US)
5.5% due 01/14/02 ......................... 5,000 4,867
Household Finance Corp. - Notes (US)
6.0% due 05/01/04 ......................... 7,020 6,616
Money Store Home Equity Trust -
Ser. 1996-B A7 (US)
7.55% due 02/15/20 ........................ 10,050 10,025
Residential Asset Securities Corp. (US)
7.18% due 01/25/25 ........................ 4,000 3,956
Residential Funding Mortgage
Securities Ser. 1999-HI4 Cl. A2 (US)
6.78% due 12/25/24 ........................ 9,740 9,644
U.S. West Capital Funding, Inc. (US)
6.875% due 07/15/28 ....................... 3,360 2,888
---------
72,968
Pollution Control - 0.1%
WMX Technologies, Inc. - Notes (US)
7.125% due 06/15/01 ....................... 2,715 2,670
Real Estate Investment Trust - 0.6%
Residential Asset Securitization
Trust - Ser. 1998-A8 Cl. A3 (US)
6.75% due 08/25/28 ........................ 20,258 19,962
Retail - Department Stores - 0.5%
Federated Department Stores,
Inc. - Sr. Notes (US)
8.5% due 06/15/03 ......................... 7,445 7,569
Wal Mart Stores, Inc. (US)
7.55% due 02/15/30 ........................ 9,185 9,386
---------
16,955
151
<PAGE>
SCHEDULE OF INVESTMENTS--Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
MANAGED PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Retail - Food - 0.2%
The Kroger Co. (US)
8.05% due 02/01/10 ......................... $ 5,630 $ 5,595
Telecommunication Services - 0.2%
CSC Hol dings, Inc. - Sr. Notes (US)
8.125% due 07/15/09 ........................ 5,000 4,875
Telephone - 0.4%
AT&T Corp. - Notes (US)
5.625% due 03/15/04 ........................ 4,000 3,764
MCI Worl dCom, Inc. - Notes (US)
7.75% due 04/01/07 ......................... 6,560 6,559
Sprint Capital Corp. (US)
6.875% due 11/15/28 ........................ 3,380 2,924
---------
13,247
Transportation Services - 0.2%
Delta Air Lines, Inc. (US)
8.3% due 12/15/29 .......................... 9,130 8,007
U.S. Government Agencies - 11.8%
Federal Home Loan Mortgage Corp. (US)
6.0% due 12/15/26 .......................... 25,000 21,742
Federal National Mortgage Assoc. (US)
6.0% due 07/25/15 .......................... 95,210 89,291
6.0% due 05/15/08 .......................... 9,500 8,859
6.5% due 07/25/15 .......................... 21,390 20,620
6.5% due 08/25/30 .......................... 55,305 52,125
7.0% due 08/25/30 .......................... 24,000 23,156
7.0% due 06/18/13 .......................... -
7.0% due 04/01/29 .......................... 17,687 17,522
7.25% due 05/15/30 ......................... 17,955 18,386
7.5% due 07/25/30 .......................... 49,850 49,141
8.0% due 07/25/30 .......................... 41,000 41,173
Government National Mortgage Assoc. (US)
1.0% due 07/15/30 .......................... 69,532 68,653
7.5% due 07/15/30 .......................... 13,510 13,413
8.0% due 12/15/17 .......................... 23,985 24,425
---------
448,506
U.S. Governmental - 6.6%
U.S. Treasury (US)
4.25% due 11/15/03 ......................... 4,920 4,617
U.S. Treasury - Bonds (US)
5.25% due 02/15/29 ......................... 11,590 10,286
5.75% due 04/30/03 ......................... 3,000 2,952
5.875% due 11/15/04 ........................ 31,435 30,978
6.25% due 05/15/30 ......................... 48,190 50,562
6.75% due 08/15/26 ......................... 14,010 15,076
8.875% due 08/15/17 ........................ 4,450 5,672
U.S. Treasury - Notes (US)
5.875% due 11/15/05 ........................ 19,000 18,674
6.5% due 05/31/02 .......................... 5,670 5,677
---------
144,494
---------
TOTAL PUBLICLY-TRADED BONDS- 38.8% 1,249,804
SHORT-TERM INVESTMENTS - 11.7%
Investment in joint trading account
(Note B) (US)
6.853% due 07/03/00 ........................ 376,055 376,055
-------- ---------
TOTAL INVESTMENTS- 110.8% 3,567,450
Payables, less cash and receivables- (10.8)% (348,278)
-------- ---------
NET ASSETS- 100.0% 3,219,172
ADR - American Depository Receipt
(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, 2000, securities aggregated
$1,276 or 0.04% of net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY COUNTRY
Market % of
Country Value Long-Term
Abbreviation (000's) Investments
United States US 2,870,178 89.9%
Canada CA 68,904 2.1%
Supra National XU 45,664 1.4%
Netherlands NL 44,282 1.4%
Italy IT 37,076 1.2%
Bermuda BM 32,374 1.1%
Luxembourg LU 17,616 0.6%
Japan JP 16,732 0.5%
Germany DE 16,352 0.5%
France FR 14,285 0.4%
Spain ES 13,244 0.4%
Norway NO 4,637 0.1%
Sweden SE 3,389 0.1%
Denmark DK 3,270 0.1%
United Kingdom GB 1,708 0.1%
Australia AU 1,591 0.1%
---------- --------
$3,191,302 100.0%
========== ========
152
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.7%
Raytheon Co. - Notes
6.45% due 08/15/02 .............................. $ 500 $ 488
Banks - 13.5%
BankBoston Corp. - Sr. Notes
6.125% due 03/15/02 ............................. 1,900 1,858
Banponce Corp. - Notes
6.54% due 11/06/01 .............................. 1,000 986
6.55% due 10/10/00 .............................. 1,100 1,098
Capital One Bank - Notes
7.0% due 04/30/01 ............................... 1,000 998
First Hawaiian, Inc. - Sub. Notes
6.25% due 08/15/00 .............................. 2,000 1,997
First Union Corp. - Notes
6.95% due 11/01/04 .............................. 500 486
J.P. Morgan & Co., Inc. - Sr. Notes
5.75% due 02/25/04 .............................. 1,000 945
Star Banc Corp. - Notes
5.875% due 11/01/03 ............................. 600 569
Westpac Banking Corp. - Sub. Debs.
9.125% due 08/15/01 ............................. 1,000 1,019
------
9,956
Brokerage and Investment Management - 3.8%
Donaldson, Lufkin & Jenrette, Inc. - Sr. Notes
5.875% due 04/01/02 ............................. 1,900 1,848
Lehman Brothers Holdings, Inc. - Notes
6.5% due 10/01/02 ............................... 470 459
Morgan Stanley, Dean Witter, Discover & Co.
5.625% due 01/20/04 ............................. 500 469
------
2,776
Business Services - 0.6%
Comdisco, Inc. - Notes
5.95% due 04/30/02 .............................. 500 476
Computer Equipment - 0.6%
International Business Machines Corp. - Notes
5.625% due 04/12/04 ............................. 500 476
Cosmetics and Personal Care Products - 2.6%
Dial Corp. - Notes
5.9% due 10/25/01 ............................... 2,000 1,951
Diversified Operations - 3.5%
CMS Panhandle Holding - Sr. Notes
6.125% due 03/15/04 ............................. 1,000 937
El Paso Energy Corp. - Sr. Notes
6.625% due 07/15/01 ............................. 500 494
Tyco International Group SA
6.125% due 06/15/01 ............................. 1,200 1,185
------
2,616
Electric Power - 0.7%
Niagara Mohawk Power Corp. - Sr. Notes
7.25% due 10/01/02 .............................. 499 492
Financial Services - 12.1%
Associates Corp. of North America - Sr. Notes
5.75% due 11/01/03 .............................. 450 425
AT&T Capital Corp.
6.875% due 01/16/01 ............................. 910 909
Finova Capital Corp. - Notes
5.875% due 10/15/01 ............................. 500 454
Gatx Capital Corp. - Notes
6.5% due 11/01/00 ............................... 1,750 1,744
General Motors Acceptance Corp. - Notes
7.48% due 02/28/03 .............................. 1,200 1,200
Green Tree Financial Corp. - Ser. 1996-8 Cl. A6
7.6% due 10/15/27 ............................... 680 679
Heller Financial, Inc. - Notes
6.25% due 03/01/01 .............................. 1,500 1,489
Lehman Brothers Holdings - Notes
7.75% due 01/15/05 .............................. 550 545
PNC Funding Corp.
7.0% due 09/01/04 ............................... 500 489
Salomon, Inc. - Sr. Notes
7.2% due 02/01/04 ............................... 500 496
U.S. West Capital Funding, Inc.
6.875% due 08/15/01 ............................. 500 498
------
8,928
Food, Beverage and Tobacco - 0.9%
Philip Morris Cos., Inc. - Debs.
8.25% due 10/15/03 .............................. 640 639
Health Care Products - 1.9%
Beckman Instruments, Inc. - Sr. Notes
7.1% due 03/04/03 ............................... 1,475 1,417
Health Care Services - 0.5%
Tenet Healthcare Corp. - Sr. Notes
8.625% due 12/01/03 ............................. 360 357
Media - TV / Radio - 1.4%
Continental Cablevision - Sr. Notes
8.5% due 09/15/01 ............................... 1,010 1,024
Natural Gas Distribution - 2.4%
Enron Corp. - Debs.
9.125% due 04/01/03 ............................. 500 518
KN Energy, Inc. - Sr. Notes
6.45% due 03/01/03 .............................. 1,300 1,260
------
1,778
Oil - 1.4%
Coastal Corp. - Sr. Notes
8.125% due 09/15/02 ............................. 500 509
Conoco, Inc. - Notes
5.9% due 04/15/04 ............................... 550 524
------
1,033
153
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SHORT-TERM BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINUED
Oil - Equipment and Services - 1.3%
Petroleum-Geo Services ASA - Bonds
6.25% due 11/19/03 ............................ $1,000 $ 946
Oil and Natural Gas Exploration and Production - 1.6%
Gulf Canada Resources, Ltd. - Sr. Notes
8.35% due 08/01/06 ............................ 170 168
Occidental Petroleum Corp. - Notes
8.5% due 11/09/01 ............................. 1,000 1,008
-------
1,176
Personal and Commercial Lending - 8.9%
American General Finance Corp. - Notes
5.75% due 11/23/01 ............................ 1,270 1,242
Covenant Transport, Inc. - Cl. A
7.6% due 12/15/29 ............................. 252 246
Ford Motor Credit Co. - Sr. Notes
5.75% due 02/23/04 ............................ 1,500 1,410
Green Tree Financial Corp. - Ser. 1996-F
7.3% due 01/15/28 ............................. 269 269
Househol d Finance Corp. - Notes
6.0% due 05/01/04 ............................. 1,000 942
MBNA America Bank N.A. - Notes
5.96% due 08/10/00 ............................ 2,000 1,998
Money Store Home Equity Trust - Ser. 1996-B A7
7.55% due 02/15/20 ............................ 232 232
Money Store Home Equity Trust - Ser. 1997-D AF3
6.345% due 11/15/21 ........................... 232 230
-------
6,569
Pollution Control - 0.7%
WMX Technologies, Inc. - Notes
7.125% due 06/15/01 ........................... 570 561
Real Estate Investment Trust - 2.3%
Franchise Finance Corp. of America - Sr. Notes
7.0% due 11/30/00 ............................. 1,400 1,395
Residential Asset Securitization Trust - Ser.
1998-A8 Cl. A3
6.75% due 08/25/28 ............................ 323 318
-------
1,713
Retail - Department Stores - 2.8%
Dillard's, Inc. - Notes
5.79% due 11/15/01 ............................ 975 932
Federated Department Stores, Inc. - Sr. Notes
8.5% due 06/15/03 ............................. 1,090 1,108
-------
2,040
Retail - Food - 0.7%
Safeway, Inc. - Notes
5.875% due 11/15/01 ........................... 500 491
Telecommunication Services - 2.0%
Cox Communications, Inc. - Notes
7.0% due 08/15/01 ............................. 1,500 1,492
Telephone - 2.0%
MCI Worldcom, Inc. - Sr. Notes
6.125% due 08/15/01 ........................... 1,500 1,481
Transportation Services - 2.7%
Norfolk Southern Corp. - Notes
6.875% due 05/01/01 ........................... 2,000 1,994
U.S. Government Agencies - 10.6%
Federal Home Loan Bank
8.0% due 06/01/10 ............................. 1,289 1,301
Federal Home Loan Mortgage Corp.
7.75% due 01/15/21 ............................ 455 457
Federal National Mortgage Assoc.
7.0% due 12/01/10 ............................. 1,868 1,850
7.0% due 06/18/13 .............................
Government National Mortgage Assoc.
1.0% due 12/31/99 ............................. 756 748
-------
4,356
U.S. Governmental - 10.6%
U.S. Treasury - Bonds
4.25% due 11/15/03 ............................ 530 498
5.875% due 02/15/04 ........................... 3,610 3,560
5.875% due 11/15/04 ........................... 690 680
U.S. Treasury - Notes
5.5% due 07/31/01 ............................. 2,000 1,980
6.375% due 09/30/01 ........................... 4,500 4,492
-------
11,210
-------
TOTAL PUBLICLY-TRADED BONDS- 92.7% 68,436
SHORT-TERM INVESTMENTS - 6.8%
Investment in joint trading account (Note B)
6.853% due 07/03/00 .......................... 5,035 5,035
------- -------
TOTAL INVESTMENTS- 99.5% 73,471
Receivables, less Cash and payables- 0.5% 336
------- -------
NET ASSETS- 100.0% 73,807
See notes to financial statements.
154
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Auto and Truck Parts - 2.9%
Avis Rent A Car, Inc. * .................... 16,100 $ 302
Cummins Engine Company, Inc. ............... 24,900 679
Lear Corp. * ............................... 36,900 738
Superior Industries International, Inc. .... 9,300 239
Tenneco Automotive, Inc. ................... 30,700 161
-------
2,119
Automobile - 0.2%
Wabash National Corp. ...................... 11,400 136
Banks - 10.5%
Bank United Corp. - Cl. A .................. 17,600 619
Brookline Bancorp, Inc. .................... 21,300 244
Cullen/Frost Bankers, Inc. ................. 10,100 266
Downey Financial Corp. ..................... 20,090 582
East West Bancorp, Inc. .................... 50,700 729
Greater Bay Bancorp ........................ 6,600 308
Hudson United Bancorp ...................... 15,494 348
Imperial Bancorp * ......................... 29,965 468
Independence Community Bank Corp. .......... 30,900 409
MAF Bancorp, Inc. .......................... 17,100 311
Provident Financial Group .................. 15,400 367
Queens County Bancorp ...................... 14,900 275
Richmond County Financial Corp. ............ 22,700 434
Silicon Valley Bancshares * ................ 16,400 699
Southwest Bancorporation of Texas, Inc. * .. 13,200 274
Sterling Bancshares, Inc. .................. 27,100 293
Washington Federal, Inc. ................... 32,700 597
Westamerica Bancorporation ................. 11,400 298
-------
7,521
Brokerage and Investment Management - 2.7%
Affiliated Managers Group, Inc. * .......... 7,100 323
Dain Rauscher Corp. ........................ 5,300 350
Investment Technology Group, Inc. .......... 5,000 213
Jefferies Group, Inc. ...................... 16,300 329
John Nuveen Co. - Cl. A .................... 4,500 188
Southwest Securities Group, Inc. ........... 13,900 518
-------
1,921
Business Services - 0.3%
American Management Systems, Inc. * ........ 5,700 187
Chemicals - 4.0%
Cambrex Corp. .............................. 5,700 257
Cytec Industries, Inc. * ................... 13,700 338
Ferro Corp. ................................ 12,000 252
Georgia Gulf Corp. ......................... 26,700 556
Lubrizol Corp. ............................. 12,400 260
Millennium Chemicals, Inc. ................. 29,600 503
Spartech Corp. ............................. 10,500 284
W.R. Grace & Co. ........................... 36,900 447
-------
2,897
Commercial Services - 2.1%
Advanced Marketing Services, Inc. .......... 11,600 $ 214
ADVO, Inc. ................................. 10,700 449
DeVry, Inc. * .............................. 10,200 270
Diamond Technology Partners, Inc. .......... 1,900 167
Sybase, Inc. * ............................. 18,500 426
-------
1,526
Computer Equipment - 0.5%
Breakaway Solutions, Inc. * ................ 1,800 49
InFocus Corp. * ............................ 10,500 338
-------
387
Computer Software and Services - 2.1%
Barra, Inc. * .............................. 5,300 263
CAIS Internet, Inc. * ...................... 9,700 136
Cognizant Technology Solutions Corp. ....... 2,900 96
Eprise Corp. * ............................. 11,100 182
Fritz Computer, Inc. ....................... 15,000 155
Keynote Systems, Inc. * .................... 900 64
MapInfo Corp. .............................. 4,400 179
National Data Corp. ........................ 7,800 179
Quintus Corp. * ............................ 11,500 228
-------
1,482
Construction - 1.6%
Del Webb Corp. ............................. 13,800 211
Granite Construction, Inc. ................. 15,100 370
Insituform Technologies, Inc. - Cl. A * .... 7,800 212
NVR, Inc. * ................................ 6,700 382
-------
1,175
Consumer - Miscellaneous - 2.2%
Briggs & Stratton Corp. .................... 16,600 569
Fossil, Inc. * ............................. 10,800 210
NetRatings, Inc. * ......................... 5,200 133
The Topps Company, Inc. .................... 16,000 184
Toro Co. ................................... 7,900 260
Tupperware Corp. ........................... 11,500 253
-------
1,609
Containers - 0.6%
Healthcare Realty Trust, Inc. .............. 26,000 444
Cosmetics and Personal Care Products - 0.8%
AptarGroup, Inc. ........................... 22,100 597
Diversified Operations - 1.1%
Chemed Corp. ............................... 10,800 305
Justin Industries, Inc. .................... 8,500 186
Mark IV Industries, Inc. ................... 2,400 50
Olin Corp. ................................. 16,200 267
-------
808
Electric Power - 3.2%
Cleco Corp. ................................ 14,000 469
Idacorp, Inc. .............................. 22,500 725
155
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Electric Power - Continued
Minnesota Power, Inc. ...................... 9,400 $ 163
Public Service Co. of New Mexico ........... 32,000 494
RGS Energy Group, Inc. ..................... 19,100 425
-------
2,276
Electrical Equipment - 0.6%
Anixter International, Inc. ................ 9,000 239
Littelfuse, Inc. * ......................... 4,600 225
-------
464
Electronic Products and Services - 4.7%
Audiovox Corp. - Cl. A * ................... 5,500 121
Belden, Inc. ............................... 6,600 169
Brooks Automation, Inc. * .................. 3,000 192
Cymer, Inc. * .............................. 5,500 263
Electroglas, Inc. * ........................ 7,100 153
Exar, Corp. * .............................. 4,500 392
Harman International Industries, Inc. ...... 3,600 219
Helix Technology Corp. ..................... 3,900 152
Kemet Corp. * .............................. 12,200 306
Kent Electronics Corp. * ................... 8,200 244
Park Electrochemical Corp. ................. 7,400 267
Pioneer Standard Electronics, Inc. ......... 11,300 167
Rogers Corp. ............................... 6,200 217
Sensormatic Electronics Corp. * ............ 19,400 307
Silicon Valley Group, Inc. * ............... 7,300 189
-------
3,358
Energy - Alternative Source - 0.3%
VECTREN Corp. .............................. 10,600 183
Engineering and Construction - 0.3%
York International Corp. ................... 9,800 247
Financial Services - 0.3%
Doral Financial Corp. ...................... 20,800 238
Food, Beverage and Tobacco - 3.9%
Applebee's International, Inc. ............. 7,400 224
Canandaigua Brands, Inc. - Cl. A * ......... 3,100 157
Corn Products International, Inc. .......... 20,600 546
Dole Food Company .......................... 21,000 344
NBTY, Inc. * ............................... 12,900 82
Robert Mondavi Corp. - Cl. A .* ............ 10,600 325
Suiza Foods Corp. * ........................ 9,600 469
Universal Corp. ............................ 29,600 625
-------
2,772
Health Care Products - 1.6%
Datascope Corp. * .......................... 7,000 252
Owens and Minor, Inc. ...................... 19,700 338
Scott Technologies, Inc. ................... 8,300 143
Varian Medical Systems, Inc. ............... 10,000 391
-------
1,124
Health Care Services - 2.7%
Accredo Health, Inc. ....................... 5,300 183
Bindley Western Industries, Inc. ........... 20,421 540
First Health Group Corp. * ................. 13,400 440
Hooper Holmes, Inc. ........................ 16,800 134
Universal Health Services, Inc. - Cl. B * .. 10,100 662
-------
1,959
Household Appliances / Furnishings - 1.7%
Applica, Inc. .............................. 14,400 163
Salton, Inc. * ............................. 16,500 608
Springs Industries, Inc. - Cl. A ........... 13,500 435
-------
1,206
Housing - 1.1%
Kaufman & Broad Home Corp. ................. 11,100 220
Pulte Corp. ................................ 26,500 573
-------
793
Insurance - 4.4%
Commerce Group, Inc. ....................... 8,900 262
Delphi Financial Group, Inc. - Cl. A * ..... 13,400 455
Enhance Financial Services Group, Inc. ..... 16,900 243
Everest Re Group, Ltd. ..................... 17,600 578
Ohio Casualty Corp. ........................ 19,200 204
Presidential Life Corp. .................... 10,000 139
Radian Group, Inc. ......................... 5,700 295
Selective Insurance Group .................. 39,300 747
Stancorp Financial Group, Inc. ............. 7,400 238
-------
3,161
Leisure and Recreation - 1.4%
Argosy Gaming Co. * ........................ 13,500 194
Aztar Corp. * .............................. 16,100 250
Callaway Golf Co. .......................... 20,000 326
Station Casinos, Inc. * .................... 10,300 257
-------
1,027
Machinery - 3.6%
Astec Industries, Inc. * ................... 8,000 203
Graco, Inc. ................................ 10,950 356
Imation Corp. * ............................ 14,700 432
Kulicke and Soffa Industries * ............. 3,100 184
Manitowoc Co., Inc. ........................ 7,500 201
Stewart & Stevenson Services, Inc. ......... 36,800 554
Tecumseh Products Co. - Cl. A .............. 11,500 439
Terex Corp. * .............................. 16,300 230
-------
2,599
Media - Publishing - 0.5%
McClatchy Newspapers, Inc. - Cl. A ......... 11,800 391
Metal Product and Fabrication - 1.1%
Commercial Metals Co. ...................... 10,000 275
Milacron, Inc. ............................. 12,400 180
156
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Metal Product and Fabrication - Continued
Worthington Industries, Inc. ............... 31,800 $ 334
-------
789
Metals and Mining - 1.3%
Century Aluminum Co. ....................... 13,100 142
Mueller Industries , Inc. .................. 9,800 274
Precision Castparts Corp. .................. 8,500 385
Quanex Corp. ............................... 10,200 152
-------
953
Natural Gas Distribution - 2.2%
Energen Corp. .............................. 14,800 323
NUI Corp. .................................. 9,800 264
Peoples Energy Corp. ....................... 12,500 405
UGI Corp. .................................. 16,400 336
Washington Gas Light Co. ................... 10,600 255
-------
1,583
Oil - 0.3%
UTI Energy Corp. * ......................... 6,200 249
Oil - Equipment and Services - 1.1%
Marine Drilling Companies, Inc. * .......... 9,700 272
ONEOK, Inc. ................................ 5,800 150
St. Mary Land & Exploration Co. ............ 8,100 341
-------
763
Oil and Natural Gas Exploration and Production - 2.6%
Equitable Resources, Inc. .................. 12,500 603
Patterson Energy, Inc. * ................... 9,700 276
Tom Brown, Inc. ............................ 7,100 164
Valero Energy Corp. ........................ 19,400 616
Western Gas Resources, Inc. ................ 9,200 193
-------
1,852
Paper and Forest Products - 2.8%
Louisiana-Pacific Corp. .................... 48,900 532
P.H. Glatfelter Co. ........................ 36,700 374
Pope & Talbot, Inc. ........................ 24,800 397
Rayonier, Inc. ............................. 10,700 384
United Stationers, Inc. * .................. 9,500 307
-------
1,994
Personal and Commercial Lending - 0.7%
CompuCredit Corp. * ........................ 7,800 234
Metris Cos., Inc. .......................... 11,700 294
-------
528
Precious Metals/Gems/Stones - 0.4%
Stillwater Mining Co. * .................... 9,250 258
Real Estate Development - 1.4%
LNR Property Corp. ......................... 14,400 281
Ryland Group, Inc. ......................... 12,100 268
Standard Pacific Corp. ..................... 45,700 457
-------
1,006
Real Estate Investment Trust - 10.0%
Bedford Property Investors, Inc. ........... 20,400 379
Capital Automotive REIT .................... 51,000 720
Essex Property Trust, Inc. ................. 8,900 374
FelCor Lodging Trust, Inc. ................. 34,136 631
Gables Residential Trust ................... 21,600 558
Hospitality Properties Trust ............... 12,100 273
IRT Property Co. ........................... 34,900 297
JDN Realty Corp. ........................... 13,400 137
Kilroy Realty Corp. ........................ 8,200 213
Mack-Cali Realty Corp. ..................... 6,200 159
MeriStar Hospitality Corp. ................. 20,300 426
Mid-America Apartment Communities, Inc. .... 20,400 490
National Health, Inc. ...................... 30,500 335
Prentiss Properties Trust .................. 14,700 353
RFS Hotel Investors, Inc. .................. 24,500 288
Shurgard Storage Centers, Inc. ............. 21,100 475
SL Green Realty Corp. ...................... 16,600 444
Sovran Self Storage, Inc. .................. 14,900 319
The Macerich Co. ........................... 13,200 291
-------
7,162
Retail - Department Stores - 4.0%
Barnes & Noble, Inc. * ..................... 9,200 205
Cato Corp. - Cl. A ......................... 21,400 249
Dillard's, Inc. - Cl. A .................... 27,800 340
Dollar Thrifty Automotive Group, Inc. * .... 16,300 300
Footstar, Inc. * ........................... 7,900 263
Payless ShoeSource, Inc. * ................. 6,600 338
Pier 1 Imports, Inc. ....................... 19,800 193
REX Stores Corp. ........................... 7,400 172
Shopko Stores, Inc. ........................ 10,900 168
Zale Corp. * ............................... 18,100 661
-------
2,889
Retail - Food - 1.8%
CEC Entertainment, Inc. * .................. 7,700 197
P.F. Chang's China Bistro, Inc. * .......... 5,600 179
Ruby Tuesday, Inc. ......................... 35,200 442
Sonic Corp. * .............................. 7,600 223
The Cheesecake Factory, Inc. * ............. 8,350 230
-------
1,271
Shoe and Apparel Manufacturing - 1.0%
Brown Shoe Co., Inc. ....................... 18,300 238
Kellwood Co. ............................... 10,900 230
Russell Corp. .............................. 10,800 216
-------
684
Steel - 0.9%
Ryerson Tull, Inc. ......................... 22,900 237
Texas Industries, Inc. ..................... 14,300 413
-------
650
157
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Telecommunication Equipment - 0.7%
Cable Design Technologies Corp. ............ 10,300 $ 345
Glenayre Technologies, Inc. * .............. 12,100 128
-------
473
Telecommunication Services - 0.2%
Intermedia Communications, Inc. * .......... 5,300 158
Transportation Services - 3.1%
America West Hol dings Corp. - Cl. B * ..... 22,400 383
Landstar Systems, Inc. ..................... 9,900 590
Offshore Logistics, Inc. * ................. 29,300 421
Roadway Express, Inc. ...................... 19,700 462
Ryder System, Inc. ......................... 15,200 288
USFreightways Corp. ........................ 4,900 120
-------
2,264
-------
TOTAL COMMON STOCK- 97.5% 70,133
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 2.4%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ....................... $ 1,737 1,737
------- -------
TOTAL INVESTMENTS- 99.9% 71,870
Cash and Receivables, less Payables - 0.1% 83
------- -------
NET ASSETS- 100.0% 71,953
======= =======
* Non-income producing security.
See notes to financial statements.
158
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Argentina - 0.1%
Telefonica de Argentina SA - ADR
(UTIT) ............................... 3,520 $ 112
Australia - 1.9%
Brambles Industries, Ltd. (DIOP) ...... 10,000 307
Commonwealth Bank of Australia
(BANK) ............................... 17,248 286
Lend Lease Corp. (FINL) ................ 10,052 128
News Corp., Ltd. (MEDI) ................ 40,242 554
Publishing & Broadcasting, Ltd. (MEDP) 35,000 269
TABCORP Holdings, Ltd. (LEIS) .......... 21,000 121
Telstra Corp. * (TELS) ................ 9,000 20
Telstra Corp., Ltd. (TELS) ............ 64,000 259
--------
1,944
Belgium - 0.6%
Dexia (BANK) .......................... 1,658 245
Fortis (B) (INSU) ...................... 11,860 345
UCB SA (HEAL) .......................... 940 34
--------
624
Bermuda - 0.2%
Dao Heng Bank Group, Ltd. (BANK) ...... 46,000 204
Brazil - 1.5%
Embratel Participacoes SA - ADR (UTIT).. 4,000 95
Tele Sudeste Celular Participacoes SA -
ADR * (TELS) ......................... 2,271 69
Telecomicacoes de Sao Paulo (UTIT) .... 11,358 210
Telecomunicacoes Brasileiras SA - ADR
(UTIT) ................................ 11,358 1,103
Unibanco - Uniao de Bancos Brasileiros
SA - GDR (BANK) ...................... 4,000 115
--------
1,592
Canada - 1.1%
Alcan Aluminum, Ltd. (META) ............ 3,360 104
Celestica, Inc. * (COMM) .............. 11,322 562
NORTEL NETWORKS Corp. (TELE) .......... 6,080 422
Royal Bank of Canada (BANK) ............ 1,540 79
--------
1,167
Denmark - 0.1%
Tele Danmark A/S (TELS) ................ 2,070 139
Finland - 2.9%
Nokia Oyj (HEAL) ...................... 57,480 2,933
France - 12.1%
Alcatel (TELE) ........................ 18,770 1,231
Altran Technologies, Inc. SA (AERO) .... 760 149
Aventis SA * (HEAL) .................... 1,662 119
AXA SA (INSU) .......................... 7,365 1,160
Banque Nationale de Paris (BANK) ...... 9,420 906
Canal Plus (MEDI) ...................... 510 86
Cap Gemini SA (COMM) .................. 1,640 289
Carrefour SA (RETF) .................... 1,252 86
Compagnie de St. Gobain (CONS) ........ 1,990 269
Groupe Danone (FOOD) .................. 520 69
Hermes International (RETS) ............ 1,140 154
L'Oreal (HNBA) ........................ 135 117
Lafarge SA (CONS) ...................... 486 38
Legrand SA (ELEQ) ...................... 1,744 391
Moet Hennessy-Louis Vuitton (FOOD) .... 606 250
Rhone-Poulenc SA (BANK) ................ 12,209 891
Sanofi-Synthelabo SA * (HEAL) .......... 14,538 693
Schneider SA (MACH) .................... 1,761 123
Societe Generale - Cl. A (BANK) ........ 2,592 156
Societe Television Francaise 1 (MEDI) .. 21,200 1,477
Sodexho Alliance SA (LEIS) ............ 624 113
STMICROELECTRONICS (ETRN) .............. 9,118 574
Total Fina SA - Cl. B (OILX) .......... 10,398 1,594
Vivendi (DIOP) ........................ 16,865 1,489
--------
12,424
Germany - 4.4%
Allianz AG - Reg. (INSU) .............. 1,590 571
Bayer AG (CHEM) ........................ 3,029 118
Bayerische Vereinsbank AG (BANK) ...... 10,387 671
Deutsche Bank AG (BANK) ................ 8,024 660
Deutsche Telekom AG (UTIT) ............ 9,044 516
E.On AG (DIOP) ........................ 6,725 324
Gehe AG (HEAL) ........................ 3,538 117
Infineon Technologies AG (ETRN) ........ 6,744 532
Rhoen-Klinikum AG (HEAL) .............. 1,390 55
SAP AG (SOFT) .......................... 5,640 843
Siemens AG (DIOP) ...................... 1,057 159
--------
4,566
Hong Kong - 3.3%
Cable & Wireless HKT, Ltd. (TELS) ...... 82,800 183
Cheung Kong (Holdings), Ltd. (READ) .... 48,000 528
China Telecom (Hong Kong), Ltd.
(TELS) ................................ 104,000 917
China Unicom, Ltd. * (TELS) ............ 146,000 308
Henderson Land Development Co., Ltd.
(READ) ................................ 44,000 193
Hutchison Whampoa, Ltd. (COMM) ........ 64,900 816
Pacific Century Cyberworks, Ltd. *
(TELE) ................................ 167,000 330
Sun Hung Kai Properties, Ltd. (REIT) ... 10,000 72
--------
3,347
India - 1.3%
Global Tele-Systems, Ltd. (TELE) ...... 11,000 330
Hindustan Lever, Ltd. (HNBA) .......... 7,000 445
ICICI , Ltd. (FINL) .................... 57,484 328
159
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
India - Continued
Mahanagar Telephone Nigam, Ltd.
(TELS) .................................. 40,000 $ 192
--------
1,295
Ireland - 0.2%
SmartForce Public Limited Co. - ADR
(SOFT) .................................. 4,946 237
Italy - 5.6%
Alleanza Assicurazioni (INSU) ............ 27,000 360
Banca Intesa SpA (BANK) .................. 199,353 893
Bipop-Carire SpA (BANK) .................. 60,000 472
ENI SpA (OILS) ........................... 88,784 513
Mediaset SpA (MEDI) ...................... 12,000 183
Mediolanum SpA (INSU) .................... 24,655 401
San Paolo-IMI SpA (BANK) ................. 3,858 68
Tecnost SpA (COMP) ....................... 39,800 150
Telecom Italia Mobile SpA (TELS) ......... 128,000 1,308
Telecom Italia SpA (TELS) ................ 62,444 858
UniCredito Italiano SpA (BANK) ........... 103,393 495
--------
5,701
Japan - 19.1%
Bridgestone Corp. (PART) ................. 6,000 127
Canon, Inc. (COMM) ....................... 29,000 1,443
DDI Corp. (UTIT) ......................... 15 144
East Japan Railway Co. (TRAN) ............ 21 122
Fanuc, Ltd. (ELEQ) ....................... 3,700 376
Fuji Bank, Ltd. (BANK) ................... 83,000 631
Fuji Television Network, Inc. (MEDI) ..... 33 516
Fujitsu, Ltd. (ELEQ) ..................... 19,000 657
Hitachi, Ltd. (ETRN) ..................... 10,000 144
Ito-Yokado Co., Ltd. (RETS) .............. 3,000 180
KAO Corp. (HNBA) ......................... 6,000 183
Kokuyo Co. (COMM) ........................ 8,000 131
Kyocera Corp. (ETRN) ..................... 7,500 1,272
Makita Corp. (CNSU) ...................... 8,000 76
Marui Co., Ltd. (RETS) ................... 16,000 306
Matsushita Electric Industrial Co.
(ETRN) .................................. 35,000 907
Mitsui Fudosan Co., Ltd. (REAL) .......... 47,000 510
Murata Manufacturing Co., Ltd. (ETRN) .... 9,000 1,291
NEC Corp. (COMP) ......................... 42,000 1,318
Nippon Telegraph & Telephone Corp.
(UTIT) .................................. 111 1,475
Nomura Securities Co., Ltd. (FUND) ....... 36,000 881
NTT Mobile Communications Network, Inc.
(TELS) .................................. 35 947
Sankyo Co., Ltd. (HEAL) .................. 11,000 248
Seven-Eleven Japan (RETF) ................ 6,000 502
Shin-Etsu Chemical Co. (CHEM) ............ 6,000 304
Shiseido Co., Ltd. (CHEM) ................ 14,000 216
Softbank Corp. (BANK) .................... 1,600 217
Sony Corp. (ETRN) ........................ 12,800 1,194
Sumitomo Bank (BANK) ..................... 51,000 625
Sumitomo Corp. (DIOP) .................... 23,000 259
Sumitomo Electric Industries (DIOP) ...... 8,000 137
TDK Corp. (COMP) ......................... 3,000 431
Toshiba Corp. (ETRN) ..................... 96,000 1,083
Yamanouchi Pharmaceutical Co., Ltd.
(HEAL) .................................. 13,000 710
--------
19,563
Luxembourg - 0.1%
Society Europeenne des Satellites
(MEDI) .................................. 457 77
Mexico - 2.3%
Fomento Economico Mexicano SA de CV
(FOOD) .................................. 59,000 252
Grupo Iusacell SA de CV - ADR *
(TELS) .................................. 7,000 109
Grupo Televisa SA - GDR * (MEDI) ......... 13,907 959
Telefonos de Mexico SA - ADR (UTIT) ...... 18,120 1,035
--------
2,355
Netherlands - 6.4%
ABN Amro Holding NV (BANK) ............... 4,056 99
Akzo Nobel NV (CHEM) ..................... 1,110 47
ASM Lithography Holding NV (COMP) ........ 17,520 753
CSM NV (FOOD) ............................ 4,986 98
Equant (COMP) ............................ 3,255 132
Fortis (NL) NV (INSU) .................... 16,800 489
ING Groep NV (BANK) ...................... 17,560 1,187
Koninklije KPN NV (TELS) ................. 5,960 267
Koninklijke Philips Electronics NV
(ETRN) .................................. 26,474 1,249
Royal Dutch Petroleum Co. (OILE) ......... 10,580 658
TNT Post Group NV (TRAN) ................. 790 21
United Pan Europe (TELS) ................. 7,776 203
VNU NV (MEDP) ............................ 20,120 1,039
Wolters Kluwer NV - CVA (MEDP) ........... 10,855 289
--------
6,531
New Zealand - 0.2%
Telecom Corp. of New Zealand, Ltd.
(TELS) .................................. 46,000 161
Norway - 0.2%
Orkla ASA (DIOP) ......................... 10,360 197
Portugal - 0.1%
Jeronimo Martins, SGPS, SA (FOOD) ........ 5,743 95
Singapore - 0.4%
United Overseas Bank, Ltd. (BANK) ........ 60,072 393
South Korea - 1.5%
Korea Telecom Corp. - ADR * (TELS) ....... 7,600 368
Pohang Iron & Steel Co., Ltd. - ADR
(STEE) .................................. 3,053 73
160
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
South Korea - Continued
Samsung Electronics (ETRN) ............... 3,270 $ 1,082
--------
1,523
Spain - 3.0%
Banco Bilbao Vizcaya SA (BANK) ........... 45,250 676
Banco Santander Central Hispano SA
(BANK) .................................. 57,529 607
Endesa SA (UTIE) ......................... 25,318 490
Repsol SA (OILX) ......................... 13,082 260
Telefonica SA (UTIT) ..................... 47,230 1,015
--------
3,048
Sweden - 3.2%
Atlas Copco AB (MACH) .................... 2,330 44
Electrolux AB - Ser. B (APPL) ............ 9,520 147
Hennes & Mauritz AB - B Shares (RETS) .... 15,600 325
Nordbanken Holding (BANK) ................ 69,614 525
NORDIC BALTIC Holding (BANK) ............. 10,036 73
SANDVIK AB (MACH) ........................ 2,580 54
Securitas AB - B Shares (COMM) ........... 37,496 795
Telefonaktiebolaget LM Ericsson AB *
(TELS) .................................. 64,790 1,282
--------
3,245
Switzerland - 4.2%
ABB, Ltd. * (ENGI) ....................... 5,507 652
Adecco SA - Reg. (COMM) .................. 1,325 1,126
Credit Suisse Group - Reg. (BANK) ........ 2,100 418
Nestle SA (FOOD) ......................... 510 1,021
Roche Holding AG (HEAL) .................. 34 331
Swisscom AG - Reg. (UTIT) ................ 261 90
UBS AG (BANK) ............................ 4,692 687
--------
4,325
Taiwan - 0.1%
Hon Hai Precision Industry Co., Ltd. -
GDR 144A (a) * (ETRN) ................... 6,092 154
United Kingdom - 18.1%
Abbey National First Capital BV (BANK) ... 10,000 120
AstraZeneca Group plc (HEAL) ............. 15,701 733
Baltimore Technologies plc * (COMP) ...... 31,000 235
BG Group plc (UTIG) ...................... 9,522 61
BP Amoco plc (OILE) ...................... 49,000 470
Cable & Wireless plc (TELS) .............. 77,100 1,305
Cadbury Schweppes plc (FOOD) ............. 43,200 284
Celltech Group plc * (HEAL) .............. 13,000 252
Centrica plc * (UTIG) .................... 18,900 63
Compass Group plc (FOOD) ................. 72,000 948
David S. Smith Holdings plc (PAPR) ....... 15,000 36
Diageo plc (FOOD) ........................ 50,512 453
Electrocomponents plc (ETRN) ............. 13,000 133
GKN plc (AUTO) ........................... 4,000 51
Glaxo Wellcome plc (HEAL) ................ 65,500 1,910
Hays plc (DIOP) .......................... 6,200 35
Hilton Group plc (LEIS) .................. 16,000 56
HSBC Holdings plc (BANK) ................. 20,800 238
Kingfisher plc (RETS) .................... 42,000 382
Marconi plc (TELE) ....................... 28,600 372
Reed International plc (MEDP) ............ 131,000 1,140
Rio Tinto plc - Reg. (DIOP) .............. 28,000 458
Royal Bank of Scotland Group (BANK) ...... 88,040 1,473
Shell Transport & Trading Co. plc (OILX).. 175,000 1,460
SmithKline Beecham plc (HEAL) ............ 80,100 1,048
Standard Chartered (BANK) ................ 26,000 324
Tesco plc (RETF) ......................... 56,900 177
Tomkins plc (DIOP) ....................... 86,496 281
Unilever plc (CNSU) ...................... 38,928 236
United News & Media plc (MEDP) ........... 14,500 208
Vodafone AirTouch plc (TELS) ............. 657,614 2,657
WPP Group plc * (COMM) ................... 63,000 920
--------
18,519
--------
TOTAL COMMON STOCK- 94.2% 96,471
PREFERRED STOCK - 1.8%
Australia - 0.9%
News Corp., Ltd. (MEDI) .................. 79,247 956
Brazil - 0.8%
Banco Itau SA (BANK) ..................... 970,000 85
Petroleo Brasileiro SA - Petrobras
(OILS) .................................. 21,760 658
Telesp Celular Participacoes SA *
(TELS) .................................. 2,613,222 47
Telesp Participacoes SA * (UTIT) ......... 3,179,956 60
--------
850
Germany - 0.1%
SAP AG - Vorzug (SOFT) ................... 330 61
--------
TOTAL PREFERRED STOCK- 1.8% 1,867
161
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 3.3%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 .................. $ 3,349 $ 3,349
---------- -----------
TOTAL INVESTMENTS- 99.3% 101,687
Receivables, less cash and payables- 0.7% 755
---------- -----------
NET ASSETS- 100.0% 102,442
========== ===========
* Non-income producing security.
ADR-American Depository Receipts.
GDR-Global Depository Receipts.
(a)Pursuant to rule 144A under the Securities Act of 1993, these securities may
be resold in transactions exempt from registration, normally to qualifed
institutional buyers. At June 30, 2000, securities aggregated $154 or .15% of
net assets of the Portfolio.
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
Banks .......................................... BANK $14,518 14.8%
Telecommunication Services ..................... TELS 11,600 11.7%
Electronic Products and Services ............... ETRN 9,615 9.8%
Health Care Products ........................... HEAL 9,183 9.3%
Commercial Services ............................ COMM 6,081 6.2%
Telephone ...................................... UTIT 5,855 6.0%
Media - TV / Radio ............................. MEDI 4,808 4.9%
Diversified Operations ......................... DIOP 3,645 3.7%
Food, Beverage and Tobacco ..................... FOOD 3,469 3.5%
Insurance ...................................... INSU 3,326 3.4%
Oil and Natural Gas Exploration and Production.. OILX 3,315 3.4%
Computer Equipment ............................. COMP 3,019 3.1%
Media - Publishing ............................. MEDP 2,945 3.0%
Telecommunication Equipment .................... TELE 2,685 2.7%
Electrical Equipment ........................... ELEQ 1,425 1.4%
Retail - Department Stores ..................... RETS 1,348 1.4%
Oil ............................................ OILS 1,171 1.2%
Computer Software and Services ................. SOFT 1,141 1.1%
Oil - Equipment and Services ................... OILE 1,128 0.9%
Brokerage and Investment Management ............ FUND 880 0.8%
Retail - Food .................................. RETF 764 0.8%
Cosmetics and Personal Care Products ........... HNBA 745 0.7%
Real Estate Development ........................ READ 722 0.7%
Chemicals ...................................... CHEM 686 0.7%
Engineering and Construction ................... ENGI 652 0.7%
Real Estate Operations ......................... REAL 509 0.5%
Electric Power ................................. UTIE 490 0.5%
Financial Services ............................. FINL 457 0.5%
Consumer - Miscellaneous ....................... CNSU 312 0.3%
Construction ................................... CONS 307 0.3%
Leisure and Recreation ......................... LEIS 290 0.3%
Machinery ...................................... MACH 220 0.2%
Aerospace and Defense .......................... AERO 149 0.2%
Household Appliances / Furnishings ............. APPL 147 0.1%
Transportation Services ........................ TRAN 143 0.1%
Auto and Truck Parts ........................... PART 127 0.1%
Natural Gas Distribution ....................... UTIG 125 0.1%
Metals and Mining .............................. META 104 0.1%
Steel .......................................... STEE 73 0.1%
Real Estate Investment Trust ................... REIT 72 0.1%
Automobile ..................................... AUTO 51 0.1%
Paper and Forest Products ...................... PAPR 36 0.0%
--------- -------
$98,338 100.0%
========= =======
162
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK
Aerospace and Defense - 1.0%
B.F. Goodrich Co. .......................... 4,500 $ 153
Boeing Co. ................................. 35,468 1,483
General Dynamics Corp. ..................... 7,800 408
Honeywell International, Inc. .............. 31,062 1,046
Lockheed Martin Corp. ...................... 15,200 377
Northrop Grumman Corp. ..................... 2,800 186
Raytheon Co. - Cl. B ....................... 13,500 260
United Technologies Corp. .................. 18,400 1,083
-------
4,996
Auto and Truck Parts - 0.5%
AutoZone, Inc. * ........................... 5,800 128
Cooper Tire & Rubber Co. ................... 2,100 23
Cummins Engine Company, Inc. ............... 1,700 46
Dana Corp. ................................. 6,215 132
General Motors Corp. ....................... 21,500 1,248
Genuine Parts Co. .......................... 6,650 133
Goodyear Tire & Rubber Co. ................. 6,000 120
Johnson Controls, Inc. ..................... 3,300 169
Navistar International Corp., Inc. -
Cl. B ..................................... 2,400 75
PACCAR, Inc. ............................... 2,800 111
TRW, Inc. .................................. 4,500 195
Visteon Corp. * ............................ 6,167 75
-------
2,455
Automobile - 0.6%
Delphi Automotive Systems Corp. ............ 22,169 323
Ford Motor Co. ............................. 47,100 2,025
Harley-Davidson, Inc. ...................... 12,100 466
-------
2,814
Banks - 4.2%
AmSouth Bancorporation ..................... 14,500 228
Bank of America Corp. ...................... 64,468 2,772
Bank of New York Co., Inc. ................. 28,800 1,339
Bank One Corp. ............................. 45,050 1,197
BB&T Corporation ........................... 13,200 315
Charter One Financial, Inc. ................ 8,200 189
Chase Manhattan Corp. ...................... 48,150 2,218
Comerica, Inc. ............................. 6,000 269
Fifth Third Bancorp ........................ 11,950 756
First Union Corp. .......................... 38,246 949
Firstar Corp. .............................. 37,764 795
FleetBoston Financial Corp. ................ 35,770 1,216
Golden West Financial Corp. ................ 6,500 265
Huntington Bancshares, Inc. ................ 8,665 137
J.P. Morgan & Co., Inc. .................... 6,800 749
KeyCorp .................................... 17,500 308
National City Corp. ........................ 24,500 418
Northern Trust Corp. ....................... 8,800 573
Old Kent Financial Corp. ................... 5,250 140
PNC Bank Corp. ............................. 11,300 530
Regions Financial Corp. .................... 8,700 173
SouthTrust Corp. ........................... 6,300 143
State Street Corp. ......................... 6,300 668
Summit Bancorp ............................. 6,600 163
Suntrust Banks, Inc. ....................... 12,300 562
Synovus Financial Corp. .................... 10,350 182
U.S. Bancorp ............................... 28,918 557
Union Planters Corp. ....................... 5,300 148
Wachovia Corp. ............................. 8,000 434
Washington Mutual, Inc. .................... 22,618 653
Wells Fargo & Co. .......................... 64,200 2,488
-------
21,534
Brokerage and Investment Management - 4.7%
Aim Stic Prime Fund ........................ 11,398,345 11,398
Bear Stearns Cos., Inc. .................... 4,632 193
Charles Schwab Corp. ....................... 53,275 1,791
Franklin Resources, Inc. ................... 9,800 298
Lehman Brothers Holdings, Inc. ............. 4,600 435
Merrill Lynch & Co., Inc. .................. 15,100 1,736
Morgan Stanley, Dean Witter, Discover &
Co. ....................................... 44,700 3,721
Paine Webber Group, Inc. ................... 5,400 246
Prime Obligation Fund ...................... 3,630,565 3,631
T. Rowe Price Associates, Inc. ............. 4,600 196
-------
23,645
Business Services - 0.3%
Automatic Data Processing, Inc. ............ 24,500 1,312
Dun & Bradstreet Corp. ..................... 6,000 172
H & R Block, Inc. .......................... 3,900 126
-------
1,610
Chemicals - 0.8%
Air Products & Chemicals, Inc. ............. 9,000 277
Dow Chemical Co. ........................... 25,800 779
E.I. du Pont de Nemours & Co. .............. 40,682 1,780
Eastman Chemical Co. ....................... 3,000 143
Engelhard Corp. ............................ 5,300 90
Great Lakes Chemical Corp. ................. 1,900 60
Hercules, Inc. ............................. 3,400 48
Praxair, Inc. .............................. 6,000 225
Rohm & Haas Co. ............................ 8,627 298
Sigma-Aldrich Corp. ........................ 4,000 117
Union Carbide Corp. ........................ 5,000 247
W.R. Grace & Co. ........................... 3,600 44
-------
4,108
Commercial Services - 0.5%
Cendant Corp. * ............................ 26,899 377
Convergys Corp. * .......................... 6,100 316
Deluxe Corp. ............................... 2,700 64
Ecolab, Inc. ............................... 4,800 187
Equifax, Inc. .............................. 5,400 142
163
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Commercial Services - Continued
Interpublic Group Cos., Inc. ............... 11,200 $ 482
Omnicom Group, Inc. ........................ 6,900 614
Quintiles Transnational Corp. * ............ 4,600 65
R.R. Donnelley & Sons Co. .................. 5,200 117
Young & Rubicam, Inc. ...................... 2,600 149
-------
2,513
Computer Equipment - 8.5%
3Com Corp. * ............................... 13,300 766
Adaptec, Inc. * ............................ 3,800 86
Apple Computer, Inc. * ..................... 12,400 649
Compaq Computer Corp. ...................... 66,111 1,690
Comverse Technology, Inc. * ................ 5,800 539
Dell Computer Corp. * ...................... 100,600 4,961
Gateway, Inc. * ............................ 12,300 698
Hewlett-Packard Co. ........................ 39,300 4,908
Intel Corp. ................................ 131,500 17,580
International Business Machines Corp. ...... 69,500 7,615
Lexmark International Group, Inc. -
Cl. A * ................................... 4,900 330
Network Appliance, Inc. * .................. 12,000 966
VERITAS Software Corp. * ................... 15,200 1,718
Xerox Corp. ................................ 25,700 533
-------
43,039
Computer Software and Services - 10.6%
Adobe Systems, Inc. ........................ 4,700 611
America Online, Inc. * ..................... 90,200 4,758
Autodesk, Inc. ............................. 2,400 83
BMC Software, Inc. * ....................... 9,600 350
Cabletron Systems, Inc. * .................. 6,700 169
Ceridian Corp. * ........................... 6,000 144
Citrix Systems, Inc. * ..................... 6,900 131
Computer Associates International, Inc. .... 23,025 1,179
Computer Sciences Corp. * .................. 6,600 493
Compuware Corp. * .......................... 13,700 142
Electronic Data Systems Corp. .............. 18,500 763
EMC Corp. * ................................ 85,112 6,548
First Data Corp. ........................... 16,200 804
IMS Health, Inc. ........................... 11,600 209
Mercury Interactive Corp. * ................ 1,600 155
Microsoft Corp. ............................ 206,700 16,536
NCR Corp. * ................................ 4,000 156
Novell, Inc. * ............................. 12,300 114
Oracle Corp. * ............................. 111,450 9,369
Parametric Technology Corp. * .............. 10,400 114
Peoplesoft, Inc. ........................... 10,100 169
Sapient Corp. .............................. 2,300 246
Seagate Technology, Inc. * ................. 9,000 495
Shared Medical Systems Corp. ............... 1,200 88
Siebel Systems, Inc. * ..................... 7,800 1,276
Sun Microsystems, Inc. * ................... 62,000 5,638
Unisys Corp. * ............................. 11,700 170
Yahoo!, Inc. * ............................. 21,100 2,614
-------
53,524
Construction - 0.0%
Armstrong Holdings, Inc. ................... 1,300 20
Vulcan Materials Co. ....................... 4,000 171
-------
191
Consumer - Miscellaneous - 0.5%
American Greetings Corp. - Cl. A ........... 1,900 36
Avery Dennison Corp. ....................... 4,400 295
Black & Decker Corp. ....................... 3,500 138
Briggs & Stratton Corp. .................... 800 27
Clorox Co. ................................. 9,100 408
Fortune Brands, Inc. ....................... 6,600 152
Newell Rubbermaid, Inc. .................... 11,216 289
Parker-Hannifin Corp. ...................... 4,250 146
Sherwin-Williams Co. ....................... 6,300 133
Snap-On, Inc. .............................. 2,000 53
Stanley Works .............................. 3,800 90
Tupperware Corp. ........................... 1,800 40
Unilever NV - NY Shares .................... 22,482 967
-------
2,774
Containers - 0.1%
Bemis Co., Inc. ............................ 1,700 57
Crown Cork & Seal Co., Inc. ................ 4,900 74
Owens-Illinois, Inc. * ..................... 5,800 68
Pactiv Corp. * ............................. 7,400 58
Sealed Air Corp. * ......................... 3,189 167
-------
424
Cosmetics and Personal Care Products - 1.3%
Alberto-Culver Co. - Cl. B ................. 2,200 67
Avon Products, Inc. ........................ 9,700 432
Colgate-Palmolive Co. ...................... 22,800 1,365
Gillette Co. ............................... 42,600 1,488
International Flavors & Fragrances, Inc. ... 3,700 112
Procter & Gamble Co. ....................... 51,200 2,931
-------
6,395
Diversified Operations - 6.1%
Cooper Industries, Inc. .................... 3,300 107
Corning, Inc. .............................. 10,800 2,915
Costco Wholesale Corp. * ................... 17,300 571
Crane Co. .................................. 2,950 72
Danaher Corp. .............................. 5,600 277
Eastern Enterprises ........................ 1,100 69
Eaton Corp. ................................ 2,800 188
El Paso Energy Corp. ....................... 9,000 458
General Electric Co. ....................... 388,000 20,564
Illinois Tool Works, Inc. .................. 11,500 656
ITT Industries, Inc. ....................... 3,700 112
Minnesota Mining & Manufacturing Co. ....... 15,700 1,295
National Service Industries, Inc. .......... 1,300 25
164
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Diversified Operations - Continued
Pall Corp. ................................. 4,900 $ 91
PPG Industries, Inc. ....................... 6,600 292
Textron, Inc. .............................. 5,800 315
Tyco International, Ltd. ................... 65,752 3,115
-------
31,122
Electric Power - 1.5%
AES Corp. * ................................ 16,800 766
Ameren Corp. ............................... 5,300 179
American Electric Power Co. ................ 12,660 375
Cinergy Corp. .............................. 6,100 155
CMS Energy Corp. ........................... 4,200 93
Consolidated Edison, Inc. .................. 8,800 261
Constellation Energy Group ................. 5,900 192
CP&L Energy, Inc. .......................... 6,000 192
Dominion Resources, Inc. ................... 9,494 407
DTE Energy Co. ............................. 5,600 171
Duke Energy Co. ............................ 14,044 792
Edison International ....................... 13,300 273
Entergy Corp. .............................. 9,300 253
Firstenergy Corp. .......................... 8,700 203
Florida Progress Corp. ..................... 3,900 183
FPL Group, Inc. ............................ 7,200 356
GPU, Inc. .................................. 5,200 141
New Century Energies, Inc. ................. 4,400 132
Niagara Mohawk Holdings, Inc. .............. 7,800 109
Northern States Power Co. .................. 6,000 121
Peco Energy Co. ............................ 7,000 282
PG & E Corp. ............................... 15,400 379
Pinnacle West Capital Corp. ................ 3,600 122
PPL Corp. .................................. 5,500 121
Public Services Enterprise Group, Inc. ..... 8,800 305
Reliant Energy, Inc. ....................... 11,924 352
Southern Co. ............................... 26,100 608
-------
7,523
Electrical Equipment - 0.5%
American Power Conversion .................. 7,600 310
Best Buy Co., Inc. ......................... 7,800 494
Emerson Electric Co. ....................... 16,700 1,008
Molex, Inc. ................................ 7,650 368
TXU Corp. .................................. 10,912 322
Unicom Corp. ............................... 6,900 267
-------
2,769
Electronic Products and Services - 8.2%
Advanced Micro Devices, Inc. * ............. 5,800 448
Agilent Technologies, Inc. * ............... 17,574 1,296
Altera Corp. * ............................. 7,700 785
Analog Devices, Inc. * ..................... 13,800 1,049
Applied Materials, Inc. * .................. 31,400 2,846
Ball Corp. ................................. 1,400 45
Broadcom Corp. - Cl. A * ................... 2,000 438
Cisco Systems, Inc. * ...................... 272,800 17,340
Conexant Systems, Inc. * ................... 8,200 399
KLA-Tencor Corp. * ......................... 7,100 416
Linear Technology Corp. .................... 12,000 767
LSI Logic Corp. * .......................... 11,700 633
Maxim Integrated Products, Inc. * .......... 11,000 747
Micron Technology, Inc. * .................. 21,700 1,911
Millipore Corp. ............................ 1,900 143
Motorola, Inc. ............................. 84,195 2,447
National Semiconductor Corp. * ............. 6,900 392
Novellus Systems, Inc. * ................... 5,000 283
PE Corp-BE Biosystems Group ................ 8,200 540
PerkinElmer, Inc. .......................... 2,000 132
Pitney Bowes, Inc. ......................... 10,100 404
Polaroid Corp .............................. 1,400 25
Rockwell International Corp. * ............. 7,700 242
Sanmina Corp. * ............................ 5,800 496
Solectron Corp. * .......................... 23,400 980
Tektronix, Inc. ............................ 2,000 148
Teradyne, Inc. * ........................... 6,800 500
Texas Instruments, Inc. .................... 64,300 4,417
Thomas & Betts Corp. ....................... 2,000 38
Xilinx, Inc. * ............................. 12,600 1,040
-------
41,347
Engineering and Construction - 0.0%
Fluor Corp. ................................ 2,900 92
Financial Services - 2.7%
American Express Co. ....................... 52,300 2,726
Associates First Capital Corp. - Cl. A * ... 28,006 625
Capital One Financial Corp. ................ 7,800 348
Citigroup, Inc. ............................ 132,528 7,985
Mellon Financial Corp. ..................... 19,700 718
Paychex, Inc. .............................. 14,750 619
Providian Financial Corp. * ................ 5,650 509
-------
13,530
Food, Beverage and Tobacco - 4.1%
Adolph Coors Co. - Cl. B ................... 1,400 85
Anheuser-Busch Cos., Inc. .................. 18,000 1,344
Archer-Daniels-Midland Co. ................. 24,473 240
Bestfoods .................................. 10,800 748
Brown-Forman Corp. - Cl. B ................. 2,800 150
Campbell Soup Co. .......................... 16,200 472
Coca-Cola Co. .............................. 97,200 5,583
Coca-Cola Enterprises, Inc. ................ 17,200 281
ConAgra, Inc. .............................. 18,800 358
General Mills, Inc. ........................ 11,800 451
H.J. Heinz Co. ............................. 14,000 612
Hershey Foods Corp. ........................ 5,500 267
Kellogg Co. ................................ 15,800 470
Nabisco Group Holdings Corp. ............... 13,000 337
PepsiCo, Inc. .............................. 56,700 2,520
Philip Morris Cos., Inc. ................... 89,000 2,364
Quaker Oats Co. ............................ 5,200 391
165
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Food, Beverage and Tobacco - Continued
Ralston-Ralston Purina Group ............... 11,700 $ 233
Sara Lee Corp. ............................. 34,900 674
Seagram Co., Ltd. .......................... 16,700 969
Starbucks Corp. * .......................... 7,300 279
SUPERVALU, Inc. ............................ 4,900 93
Sysco Corp. ................................ 13,000 548
The Kroger Co. * ........................... 32,900 726
UST, Inc. .................................. 6,000 88
Wm. Wrigley Jr. Co. ........................ 4,600 369
--------
20,652
Health Care Products - 10.9%
Abbott Laboratories ........................ 60,800 2,709
Allergan, Inc. ............................. 5,300 395
ALZA Corp. * ............................... 4,100 242
American Home Products Corp. ............... 50,800 2,985
Amgen, Inc. * .............................. 40,300 2,831
Bausch & Lomb, Inc. ........................ 2,200 170
Baxter International, Inc. ................. 11,500 809
Becton, Dickinson & Co. .................... 9,500 273
Biomet, Inc. ............................... 4,700 181
Boston Scientific Corp. * .................. 16,100 353
Bristol-Myers Squibb Co. ................... 77,700 4,526
C.R. Bard, Inc. ............................ 2,200 106
Cardinal Health, Inc. ...................... 10,800 799
Eli Lilly & Co. ............................ 44,400 4,435
Guidant Corp. * ............................ 12,200 604
Johnson & Johnson .......................... 54,600 5,562
Mallinckrodt, Inc. ......................... 2,900 126
MedImmune, Inc. * .......................... 8,100 599
Medtronic, Inc. ............................ 46,700 2,326
Merck & Co., Inc. .......................... 90,200 6,912
Pfizer, Inc. ............................... 247,175 11,864
Pharmacia Corp. ............................ 49,605 2,564
Schering-Plough Corp. ...................... 57,200 2,889
UnitedHealth Group, Inc. ................... 6,600 566
Watson Pharmaceuticals, Inc. * ............. 3,800 204
--------
55,030
Health Care Services - 0.4%
Biogen, Inc. * ............................. 6,000 387
HCA-The Healthcare Corporation ............. 22,050 670
HEALTHSOUTH Corp. * ........................ 13,500 97
Humana, Inc. * ............................. 5,700 28
Manor Care, Inc. * ......................... 3,400 24
McKesson HBOC, Inc. ........................ 10,533 220
St. Jude Medical, Inc. * ................... 3,300 151
Tenet Healthcare Corp. * ................... 12,500 337
Wellpoint Health Networks, Inc. * .......... 2,300 167
--------
2,081
Household Appliances/Furnishings - 0.1%
Leggett & Platt, Inc. ...................... 7,900 130
Maytag Corp. ............................... 3,500 129
Springs Industries, Inc. - Cl. A ........... 900 29
Whirlpool Corp. ............................ 2,800 131
--------
419
Housing - 0.1%
Centex Corp. ............................... 2,800 66
Kaufman & Broad Home Corp. ................. 1,300 26
Masco Corp. ................................ 17,600 318
Owens Corning .............................. 1,700 16
Pulte Corp. ................................ 2,200 47
--------
473
Insurance - 2.9%
Aetna, Inc. ................................ 5,600 359
AFLAC, Inc. ................................ 10,200 469
Allstate Corp. ............................. 31,200 694
American General Corp. ..................... 9,721 593
American International Group, Inc. ......... 60,486 7,107
Aon Corp. .................................. 10,100 314
Chubb Corp. ................................ 6,700 412
Cigna Corp. ................................ 6,600 617
Cincinnati Financial Corp. ................. 6,100 192
Conseco, Inc. .............................. 11,891 116
Hartford Financial Services Group,
Inc. ...................................... 8,700 487
Jefferson-Pilot Corp. ...................... 4,250 240
Lincoln National Corp. ..................... 7,500 271
Loews Corp. ................................ 4,300 258
Marsh & McLennan Cos., Inc. ................ 10,400 1,086
MBIA, Inc. ................................. 3,800 183
MGIC Investment Corp. ...................... 4,300 196
Progressive Corp. .......................... 2,700 200
Safeco Corp. ............................... 5,300 105
St. Paul Cos., Inc. ........................ 8,514 290
Torchmark, Inc. ............................ 5,100 126
UnumProvident Corp. ........................ 8,820 177
--------
14,492
Leisure and Recreation - 0.5%
Brunswick Corp. ............................ 3,100 51
Carnival Corp. ............................. 23,900 466
Eastman Kodak Co. .......................... 12,200 726
Harrah's Entertainment, Inc. * ............. 5,200 109
Hasbro, Inc. ............................... 7,125 107
Hilton Hotels Corp. ........................ 14,000 131
Marriott International, Inc. - Cl. A ....... 9,900 357
Mattel, Inc. ............................... 17,200 227
SABRE Group Holdings, Inc. * ............... 5,174 148
--------
2,322
Machinery - 0.3%
Caterpillar, Inc. .......................... 13,800 467
Deere & Co. ................................ 9,000 333
Dover Corp. ................................ 8,200 333
FMC Corp. * ................................ 1,000 58
166
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - Continued
Machinery - Continued
Ingersoll-Rand Co. ..................................... 6,400 $ 258
McDermott International, Inc. .......................... 2,100 18
Thermo Electron Corp. * ................................ 6,500 137
W.W. Grainger, Inc. .................................... 3,600 111
--------
1,715
Media - Publishing - 0.6%
Comcast Corp. - Cl. A .................................. 35,800 1,450
Dow Jones & Co., Inc. .................................. 3,600 264
Gannett Co., Inc. ...................................... 11,000 658
Knight-Ridder, Inc. .................................... 3,100 165
Meredith Corp. ......................................... 1,700 57
New York Times Co. - Cl. A ............................. 7,000 276
Tribune Co. ............................................ 12,000 420
--------
3,290
Media - TV/Radio - 2.3%
McGraw-Hill Cos., Inc. ................................. 7,500 405
The Walt Disney Co. .................................... 81,200 3,152
Time Warner, Inc. ...................................... 51,700 3,929
Viacom, Inc. - Cl. B * ................................. 59,762 4,075
--------
11,561
Metal Product and Fabrication - 0.0%
Timken Co. ............................................. 2,900 54
Worthington Industries, Inc. ........................... 3,000 31
--------
85
Metals and Mining - 0.3%
Alcan Aluminum, Ltd. ................................... 8,400 261
Alcoa, Inc. ............................................ 33,488 971
Inco, Ltd. ............................................. 7,300 112
Phelps Dodge Corp. ..................................... 3,196 119
--------
1,463
Natural Gas Distribution - 0.6%
Columbia Energy Group, Inc. ............................ 3,200 210
Enron Corp. ............................................ 28,600 1,845
NICOR, Inc. ............................................ 1,600 52
Peoples Energy Corp. ................................... 1,300 42
Sempra Energy .......................................... 8,104 138
Williams Cos., Inc. .................................... 16,800 700
--------
2,987
Oil - 1.2%
Conoco, Inc. - Cl. B ................................... 24,245 595
Royal Dutch Petroleum Co. - NY Shares .................. 83,800 5,159
Tosco Corp. ............................................ 5,900 167
--------
5,921
Oil - Equipment and Services - 0.6%
Anadarko Petroleum Corp. ............................... 5,200 256
Baker Hughes, Inc. ..................................... 12,900 413
Halliburton Co. ........................................ 17,500 826
ONEOK, Inc. ............................................ 1,200 31
Schlumberger, Ltd. ..................................... 22,300 1,664
--------
3,190
Oil and Natural Gas Exploration and Production - 3.5%
Amerada Hess Corp. ..................................... 3,400 210
Apache Corp. ........................................... 4,300 253
Ashland, Inc. .......................................... 3,000 105
Burlington Resources, Inc. ............................. 8,410 322
Chevron Corp. .......................................... 25,700 2,180
Coastal Corp. .......................................... 8,400 512
EEX Corp. .............................................. -
Exxon Mobil Corp. ...................................... 136,755 10,735
Kerr-McGee Corp. ....................................... 3,670 216
Occidental Petroleum Corp. ............................. 14,800 312
Phillips Petroleum Co. ................................. 10,100 512
Rowan Cos., Inc. * ..................................... 3,400 103
Sunoco, Inc. ........................................... 3,100 91
Texaco, Inc. ........................................... 21,600 1,150
Transocean Sedco Forex, Inc. ........................... 7,936 424
Union Pacific Resources Group, Inc. .................... 9,808 216
Unocal Corp. ........................................... 9,700 321
USX-Marathon Group ..................................... 12,400 311
--------
17,973
Paper and Forest Products - 0.6%
Boise Cascade Corp. .................................... 1,900 49
Fort James Corp. ....................................... 8,100 187
Georgia-Pacific Corp. .................................. 6,400 168
International Paper Co. ................................ 18,967 565
Kimberly-Clark Corp. ................................... 21,500 1,234
Louisiana-Pacific Corp. ................................ 4,600 50
Mead Corp. ............................................. 3,900 99
Potlatch Corp. ......................................... 900 30
Temple-Inland, Inc. .................................... 2,200 92
Westvaco Corp. ......................................... 3,900 97
Weyerhaeuser Co. ....................................... 9,300 400
Willamette Industries, Inc. ............................ 4,100 112
--------
3,083
Personal and Commercial Lending - 0.4%
Countrywide Credit Industries, Inc. .................... 4,600 139
Household International, Inc. .......................... 18,266 759
MBNA Corp. ............................................. 31,475 854
SLM Holding Corp. ...................................... 5,900 221
--------
1,973
Pollution Control - 0.1%
Allied Waste Industries, Inc. * ........................ 8,600 86
Waste Management, Inc. ................................. 24,357 463
--------
549
Precious Metals/Gems/Stones - 0.1%
Barrick Gold Corp. ..................................... 15,900 289
Freeport-McMoRan Copper & Gold, Inc. - Cl. B ........... 6,300 58
167
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
Precious Metals/Gems/Stones - Continued
Homestake Mining Co. ....................... 11,100 $ 77
Newmont Mining Corp. ....................... 6,901 149
Placer Dome, Inc. .......................... 12,400 119
-------
692
Retail - Department Stores - 4.5%
Bed Bath & Beyond, Inc. * .................. 5,300 192
Circuit City Stores, Inc. .................. 7,900 262
Consolidated Stores Corp. * ................ 3,300 40
CVS Corp. .................................. 15,300 612
Dillard's, Inc. - Cl. A .................... 3,600 44
Dollar General Corp. ....................... 13,046 254
Federated Department Stores, Inc. * ........ 8,300 280
Gap, Inc. .................................. 33,375 1,043
Harcourt General, Inc. ..................... 2,500 136
Home Depot, Inc. ........................... 90,350 4,512
J.C. Penney Co., Inc. ...................... 9,800 181
Kmart Corp. * .............................. 18,300 125
Kohl's Corp. ............................... 12,900 718
Limited, Inc. .............................. 16,852 364
Lowe's Cos., Inc. .......................... 14,800 608
May Department Stores Co. .................. 13,350 320
Nordstrom, Inc. ............................ 5,400 130
Office Depot, Inc. ......................... 12,900 81
RadioShack Corp. ........................... 7,600 360
Sears, Roebuck & Co. ....................... 14,700 480
Staples, Inc. * ............................ 18,350 282
Target Corp. ............................... 17,900 1,038
Tiffany & Co. .............................. 2,900 196
TJX Cos., Inc. ............................. 11,900 223
Toys "R" Us, Inc. * ........................ 8,600 125
Wal-Mart Stores, Inc. ...................... 174,800 10,073
-------
22,679
Retail - Drug Stores - 0.3%
Longs Drug Stores Corp. .................... 1,900 41
Rite Aid Corp. ............................. 8,500 56
Walgreen Co. ............................... 39,400 1,268
-------
1,365
Retail - Food - 0.7%
Albertson's, Inc. .......................... 16,577 551
Darden Restaurants, Inc. ................... 4,700 76
McDonald's Corp. ........................... 52,800 1,739
Safeway, Inc. * ............................ 20,400 920
The Great Atlantic & Pacific Tea Co.,
Inc. ...................................... 1,000 17
Tricon Global Restaurants, Inc. * .......... 6,150 174
Wendy's International, Inc. ................ 4,900 87
Winn-Dixie Stores, Inc. .................... 5,700 82
-------
3,646
Shoe and Apparel Manufacturing - 0.1%
Liz Claiborne, Inc. ........................ 2,000 71
Nike, Inc. - Cl. B ......................... 10,800 430
Reebok International, Ltd. ................. 1,900 30
Russell Corp. .............................. 800 16
V.F. Corp. ................................. 4,400 105
-------
652
Steel - 0.0%
Allegheny Technologies, Inc. ............... 3,750 67
Bethlehem Steel Corp. * .................... 5,900 21
Nucor Corp. ................................ 3,400 113
USX-U.S. Steel Group, Inc. ................. 3,400 63
-------
264
Telecommunication Equipment - 3.9%
ADC Telecommunications, Inc. * ............. 11,900 998
Andrew Corp. * ............................. 2,850 96
Lucent Technologies, Inc. .................. 127,725 7,568
Nortel Networks Corp. ...................... 116,200 7,930
QUALCOMM, Inc. * ........................... 28,800 1,728
Scientific-Atlanta, Inc. ................... 6,200 462
Tellabs, Inc. * ............................ 16,100 1,102
-------
19,884
Telecommunication Services - 2.5%
Clear Channel Communications, Inc. * ....... 13,300 998
Global Crossing, Ltd. * .................... 34,290 902
MediaOne Group, Inc. ....................... 23,900 1,585
Nextel Communications, Inc. - Cl. A * ...... 29,500 1,805
Sprint PCS (PCS Group) * ................... 35,600 2,118
WorldCom, Inc. * ........................... 112,477 5,160
-------
12,568
Telephone - 4.5%
Alltel Corp. ............................... 12,200 756
AT&T Corp. ................................. 123,306 3,899
Bell Atlantic Corp. ........................ 60,436 3,071
BellSouth Corp. ............................ 73,800 3,146
CenturyTel, Inc. ........................... 5,200 149
GTE Corp. .................................. 37,900 2,359
SBC Communications, Inc. ................... 133,197 5,761
Sprint Corp. ............................... 34,000 1,734
U.S. West, Inc. ............................ 19,697 1,689
-------
22,564
Transportation Services - 0.6%
AMR Corp. * ................................ 5,500 145
Burlington Northern Santa Fe ............... 17,800 408
CSX Corp. .................................. 7,900 167
Delta Air Lines, Inc. ..................... 5,000 253
Fedex Corp. * .............................. 11,200 426
Kansas City Southern Industries, Inc. ...... 4,200 372
Norfolk Southern Corp. ..................... 15,300 228
Ryder System, Inc. ......................... 2,000 38
Southwest Airlines Co. ..................... 20,200 383
U.S. Airways Group, Inc. * ................. 2,600 101
168
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX PORTFOLIO
Market
Name of Issuer Shares Value
(000's)
COMMON STOCK - CONTINUED
Transportation Services - Continued
Union Pacific Corp. ........................ 9,700 $ 361
-------
2,882
U.S. Government Agencies - 0.6%
Federal Home Loan Mortgage Corp. ........... 26,900 1,089
Federal National Mortgage Assoc. ........... 40,100 2,093
-------
3,182
-------
TOTAL COMMON STOCK- 99.9% 506,042
Par
Value
(000's)
SHORT-TERM INVESTMENTS - 0.2%
U.S. Governmental - 0.2%
U.S. Treasury Bill
5.7% due 09/14/00 .......................... $ 945 934
--------- ----------
TOTAL INVESTMENTS- 100.1% 506,976
Payables, less cash and receivables- (0.1)% (550)
--------- ----------
NET ASSETS- 100.0% 506,426
========= ==========
* Non-income producing security.
See notes to financial statements.
169
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS
Aerospace and Defense - 0.9%
Argo-Tech Corp.
8.625% due 10/01/07 ........................ $ 15 $ 11
K & F Industries, Inc. - Sr. Sub. Notes
9.25% due 10/15/07 ......................... 225 214
-------
225
Auto and Truck Parts - 6.1%
Accuride Corp. - Sr. Sub. Notes
9.25% due 02/01/08 ......................... 125 106
Delco Remy International, Inc.
10.625% due 08/01/06 ....................... 195 195
Delco Remy International, Inc. - Sr. Notes
8.625% due 12/15/07 ........................ 50 47
Dura Operating Corp.
9.0% due 05/01/09 .......................... 135 117
Federal Mogul Corp.
7.5% due 01/15/09 .......................... 675 449
Federal-Mogul Corp. - Sr. Notes
8.8% due 04/15/07 .......................... 100 72
Hayes Lemmerz International, Inc.
9.125% due 07/15/07 ........................ 100 90
LDM Technologies, Inc.
10.75% due 01/15/07 ........................ 135 106
Lear Corp. - Ser. B
8.11% due 05/15/09 ......................... 200 182
Lear Corp. - Sub. Notes
9.5% due 07/15/06 .......................... 100 97
Numatics, Inc. - Ser. B
9.625% due 04/01/08 ........................ 100 77
-------
1,538
Automobile - 0.1%
Lear Corp. - Ser B
7.96% due 05/15/05 ......................... 40 37
Banks - 0.4%
Western Financial Bank - Sub.
8.875% due 08/01/07 ........................ 125 111
Business Services - 0.4%
Express Scripts, Inc. - Sr. Notes
9.625% due 06/15/09 ........................ 100 97
Chemicals - 5.0%
Acetex Corp. - Sr. Notes
9.75% due 10/01/03 ......................... 145 136
Avecia Group plc
11.0% due 07/01/09 ......................... 200 196
Georgia Gulf Corp.
10.375% due 11/01/07 ....................... 125 129
Lyondell Chemical Co. - Debs
9.8% due 02/01/20 .......................... 110 100
Lyondell Chemical Co. - Sec
9.875% due 05/01/07 ........................ 345 342
Lyondell Chemical Co. - Sec. Notes Ser. A
9.625% due 05/01/07 ........................ 100 99
PCI Chemicals Canada, Inc.
9.25% due 10/15/07 ......................... 90 57
Sovereign Specialty Chemicals
11.875% due 03/15/10 ....................... 80 82
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06 ....................... 150 128
-------
1,269
Coal - 1.1%
P&L Coal Holdings Corp.
9.625% due 05/15/08 ........................ 300 278
Commercial Services - 2.8%
Iron Mountain, Inc.
8.75% due 09/30/09 ......................... 150 137
Pierce Leahy Command Co.
8.125% due 05/15/08 ........................ 75 67
Pierce Leahy Corp. - Sr. Sub. Notes
9.125% due 07/15/07 ........................ 220 206
Sullivan Graphics, Inc. - Sr. Sub. Notes
12.75% due 08/01/05 ........................ 125 126
Waste Management, Inc.
6.875% due 05/15/09 ........................ 200 177
-------
713
Computer Software and Services - 3.8%
Concentric Network Corp. - Sr. Notes
12.75% due 12/15/07 ........................ 150 158
Exodus Communications - Sr. Notes 144A (a)
11.625% due 07/15/10 ....................... 250 251
PSINet, Inc. - Sr. Notes
10.0% due 02/15/05 ......................... 200 185
11.0% due 08/01/09 ......................... 50 47
11.5% due 11/01/08 ......................... 125 119
Verio, Inc. - Sr. Notes
10.375% due 04/01/05 ....................... 150 157
11.25% due 12/01/08 ........................ 50 56
-------
973
Construction - 0.4%
Nortek, Inc. - Sr. Notes
9.125% due 09/01/07 ........................ 100 93
Consumer - Miscellaneous - 1.6%
Lin Holdings Corp. - Sr. Disc. Notes
1.0% due 03/01/08 .......................... 600 394
Containers - 1.6%
BWAY Corp. - Ser. B
10.25% due 04/15/07 ........................ 175 166
Gaylord Container Corp. - Sr. Notes Ser. B
9.375% due 06/15/07 ........................ 150 117
170
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Containers - Continued
Packaging Corp. of America
9.625% due 04/01/09 ............................ $ 125 $ 125
-------
408
Diversified Operations - 1.9%
Fisher Scientific International, Inc. - Sr
Sub. Notes
9.0% due 02/01/08 .............................. 125 116
Prestolite Electric, Inc.
9.625% due 02/01/08 ............................ 225 144
Roller Bearing Co. America, Inc. - Ser. B
9.625% due 06/15/07 ............................ 30 28
SCG Holdings Corp.
12.0% due 08/01/09 ............................. 104 111
Werner Holdings Co., Inc.
10.0% due 11/15/07 ............................. 35 34
Westinghouse Air Brake Co. - Sr. Notes
9.375% due 06/15/05 ............................ 45 43
-------
476
Electric Power - 0.1%
Western Resources, Inc. - Sr. Notes
6.875% due 08/01/04 ............................ 30 27
Electrical Equipment - 0.4%
Wesco Distribution, Inc. - Ser. B
9.125% due 06/01/08 ............................ 100 92
Electronic Products and Services - 0.5%
Advanced Micro Devices - Sr. Notes
11.0% due 08/01/03 ............................. 130 134
Financial Services - 1.9%
AMSC Acquisition Co., Inc. - Ser. B
12.25% due 03/31/08 ............................ 50 39
RBF Finance Co.
11.375% due 03/15/09 ........................... 220 237
Tembec Finance Corp. - Sr. Notes
9.875% due 09/30/05 ............................ 195 197
-------
473
Food, Beverage and Tobacco - 2.5%
Aurora Foods, Inc. - Sr. Sub. Notes
8.75% due 07/01/08 ............................. 75 42
9.875% due 02/15/07 ............................ 50 30
Azurix Corp. - Sr. Notes Ser. 144A (a)
10.75% due 02/15/10 ............................ 95 91
B&G Foods, Inc.
9.625% due 08/01/07 ............................ 125 87
Chiquita Brands International, Inc. - Sr. Notes
10.0% due 06/15/09 ............................. 290 222
Del Monte Foods Co. - Sr. Disc. Notes Ser. B
12.5% due 12/15/07 ............................. 137 104
Nash-Finch Co. - Ser. B
8.5% due 05/01/08 .............................. 100 66
-------
642
Health Care Products - 2.9%
ALARIS Medical Systems, Inc.
9.75% due 12/01/06 ............................. 75 49
ALARIS Medical, Inc. - Sr. Disc. Notes
1.0% due 08/01/08 .............................. 150 23
Beckman Coulter, Inc.
7.45% due 03/04/08 ............................. 50 46
Bio-Rad Laboratories, Inc. - Sr. Sub Notes
Ser. 144A (a)
11.625% due 02/15/07 ........................... 45 46
Conmed Corp.
9.0% due 03/15/08 .............................. 220 201
MEDIQ, Inc.
11.0% due 06/01/08 ............................. 125 13
Owens & Minor, Inc.
10.875% due 06/01/06 ........................... 131 136
OWENS Illinois , Inc.
7.15% due 05/15/05 ............................. 100 91
Warner Chilcott, Inc. - Ser. 144A (a)
12.625% due 02/15/08 ........................... 125 127
-------
732
Health Care Services - 2.6%
Beverly Enterprises, Inc.
9.0% due 02/15/06 .............................. 310 259
Columbia/HCA Healthcare Corp.
7.25% due 05/20/08 ............................. 50 44
Tenet Healthcare Corp. - Sr. Sub Notes
8.125% due 12/01/08 ............................ 175 161
Triad Hospitals Holdings, Inc.
11.0% due 05/15/09 ............................. 200 205
-------
669
Household Appliances / Furnishings - 0.1%
Sealy Mattress Co. - Ser. B
10.875% due 12/15/07 ........................... 50 36
Housing - 1.6%
American Standard Cos., Inc.
7.625% due 02/15/10 ............................ 35 32
Engle Homes, Inc. - Ser. C
9.25% due 02/01/08 ............................. 90 75
Grove Worldwide Llc - Sr. Sub. Notes
9.25% due 05/01/08 ............................. 85 32
Standard Pacific Corp. - Sr. Notes
8.5% due 06/15/07 .............................. 110 99
8.5% due 04/01/09 .............................. 185 167
-------
405
Leisure and Recreation - 5.2%
AMC Entertainment, Inc. - Sr. Sub. Notes
9.5% due 03/15/09 .............................. 125 60
9.5% due 02/01/11 .............................. 125 59
Aztar Corp. - Sr. Sub. Notes
8.875% due 05/15/07 ............................ 50 47
171
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - CONTINED
Leisure and Recreation - Continued
Bell Sports, Inc.
11.0% due 08/15/08 ............................. $ 150 $ 149
Hollywood Casino Corp.
11.25% due 05/01/07 ............................ 150 153
John Q. Hammons Hotels
8.875% due 02/15/04 ............................ 325 285
Loews Cineplex Entertainment Corp. - Sr. Sub.
Notes
8.875% due 08/01/08 ............................ 215 99
Station Casinos, Inc. - Sr, Sub Notes 144A (a)
9.875% due 07/01/10 ............................ 100 100
Station Casinos, Inc. - Sr. Sub. Notes
8.875% due 12/01/08 ............................ 225 212
True Temper Sports, Inc. - Sr. Sub. Notes
10.875% due 12/01/08 ........................... 150 147
-------
1,311
Media - Publishing - 0.9%
American Media Operations, Inc. - Sr. Sub Notes
10.25% due 05/01/09 ............................ 75 74
Sun Media Corp. - Sr. Sub. Notes
9.5% due 05/15/07 .............................. 150 145
-------
219
Media - TV / Radio - 11.5%
Adelphia Communications Corp.
9.375% due 11/15/09 ............................ 150 138
Allbritton Communications Co. - Sr. Sub. Debs
Ser. B
9.75% due 11/30/07 ............................. 250 243
Allbritton Communications Co. - Sr. Sub. Notes
8.875% due 02/01/08 ............................ 50 46
Benedek Communications Corp. - Sr. Disc. Notes
0.0% due 05/15/06 .............................. 225 167
Cablevision SA - Bonds
13.75% due 05/01/09 ............................ 60 54
Century Communications Corp. - Cl. A
8.875% due 01/15/07 ............................ 75 69
Century Communications Corp. - Sr. Disc. Notes
0.0% due 01/15/08 .............................. 500 205
Charter Communications Holdings, LLC - Sr
Notes
8.625% due 04/01/09 ............................ 575 507
Classic Cable, Inc.
9.875% due 08/01/08 ............................
10.5% due 03/01/10 ............................. 360 332
EchoStar DBS Corp. - Sr. Notes
9.375% due 02/01/09 ............................ 525 509
Emmis Communications Corp.
8.125% due 03/15/09 ............................ 55 50
Frontiervision Holding L.P. - Sr. Disc. Notes
1.0% due 09/15/07 .............................. 200 174
Granite Broadcassting Corp. - Sr. Sub. Notes
8.875% due 05/15/08 ............................ 175 151
Young Broadcasting, Inc.
8.75% due 06/15/07 ............................. 300 276
-------
2,921
Metals and Mining - 0.1%
Neenah Corp. - Ser. F
11.125% due 05/01/07 ........................... 40 30
Sr. Sub. Notes - Ser. B
11.125% due 05/01/07 ........................... 10 8
-------
38
Natural Gas Distribution - 0.5%
Energy Corp. of America - Sr. Sub. Notes
9.5% due 05/15/07 .............................. 200 128
Oil - Equipment and Services - 1.0%
ICO, Inc. - Sr. Notes
10.375% due 06/01/07 ........................... 50 48
Key Energy Services, Inc.
14.0% due 01/15/09 ............................. 65 73
Pioneer Natural Resources Co.
9.625% due 04/01/10 ............................ 45 47
Tuboscope, Inc.
7.5% due 02/15/08 .............................. 100 90
-------
258
Oil and Natural Gas Exploration and
Production - 3.2%
Costilla Energy, Inc. - Sr. Notes
10.25% due 10/01/06 ............................ 125 55
Petroleos Mexicanos
8.85% due 09/15/07 ............................. 175 170
Plains Resources, Inc.
10.25% due 03/15/06 ............................ 200 202
Plains Resources, Inc. - Sr. Sub. Notes
10.25% due 03/15/06 ............................ 125 126
Pride International, Inc. - Sr. Notes
9.375% due 05/01/07 ............................ 100 100
10.0% due 06/01/09 ............................. 100 102
Texas Petrochemical Corp. - Sr. Sub. Notes
11.125% due 07/01/06 ........................... 75 64
-------
819
Paper and Forest Products - 1.5%
Doman Industries, Ltd.
12.0% due 07/01/04 ............................. 75 76
Doman Industries, Ltd. - Sr. Notes
8.75% due 03/15/04 ............................. 200 158
Repap New Brunswick, Inc.
9.0% due 06/01/04 .............................. 60 58
Repap New Brunswick, Inc. - Sr. Notes
10.625% due 04/15/05 ........................... 75 68
172
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Paper and Forest Products - Continued
Tembec Industries, Inc.
8.625% due 06/30/09 .................................... $ 15 $ 14
-------
374
Pollution Control - 0.7%
Allied Waste North America
7.625% due 01/01/06 .................................... 200 174
Real Estate Development - 0.5%
D.R. Horton, Inc.
8.0% due 02/01/09 ...................................... 60 51
Del Webb Corp. - Sr. Sub. Debs
10.25% due 02/15/10 .................................... 75 66
-------
117
Retail - Department Stores - 0.3%
Mattress Discounters Co.
12.625% due 07/15/07 ................................... 75 69
Retail - Drug Stores - 1.2%
Duane Reade, Inc. - Sr. Sub. Notes
9.25% due 02/15/08 ..................................... 325 294
Retail - Food - 0.9%
Stater Bros. Holdings, Inc. - Senior Notes
10.75% due 08/15/06 .................................... 250 220
Shoe and Apparel Manufacturing - 1.1%
WestPoint Stevens, Inc. - Sr. Notes
7.875% due 06/15/08 .................................... 350 278
Steel - 4.5%
AK Steel Corp.
7.875% due 02/15/09 .................................... 150 133
AK Steel Corp. - Sr. Notes
9.125% due 12/15/06 .................................... 100 96
Algoma Steel, Inc.
12.375% due 07/15/05 ................................... 280 241
Armco, Inc. - Sr. Notes
9.0% due 09/15/07 ...................................... 75 70
LTV Corp.
11.75% due 11/15/09 .................................... 408 343
Weirton Steel Corp. - Sr. Notes
11.375% due 07/01/04 ................................... 250 245
-------
1,128
Telecommunication Equipment - 3.4%
Alestra SA de CV - Sr. Notes
12.125% due 05/15/06 ................................... 175 162
Covad Communications Group - Sr. Notes
144A (a) 12.0% due 02/15/10 ........................... 115 90
Covad Communications Group, Inc. - Sr. Notes
12.5% due 02/15/09 ..................................... 50 44
Crown Castle International Corp. - Sr. Disc. Notes
1.0% due 11/15/07 ...................................... 100 74
Fairchild Semiconductor Corp.
10.375% due 10/01/07 ................................... 35 35
Fairchild Semiconductor Corp. - Sr. Sub. Notes
10.125% due 03/15/07 ................................... 250 250
Intermedia Communications, Inc. - Sr. Notes Ser. B
9.5% due 03/01/09 ...................................... 75 72
L-3 Communications Corp. - Sr. Sub. Notes
8.5% due 05/15/08 ...................................... 35 32
Nextel Communications - Sr. Notes
9.375% due 11/15/09 .................................... 100 96
-------
855
Telecommunication Services - 15.4%
BTI Telecom Corp. - Sr. Notes
10.5% due 09/15/07 ..................................... 100 76
Clearnet Communications, Inc. - Sr. Disc. Notes
1.0% due 05/01/09 ...................................... 150 89
Fonda Group, Inc. - Sr. Sub. Notes
9.5% due 03/01/07 ...................................... 125 98
GCI, Inc. - Sr. Notes
9.75% due 08/01/07 ..................................... 400 364
Global Crossing Holdings, Ltd.
9.125% due 11/15/06 .................................... 100 96
Globalstar LP/Capital Corp. - Global Star - Sr. Notes
10.75% due 11/01/04 .................................... 125 36
GST Telecommunications, Inc. - Sr. Sub. Notes
12.75% due 11/15/07 .................................... 50 6
GT Group Telecom
13.25% due 02/01/10 .................................... 180 99
Hyperion Telecommunications, Inc. - Sr. Disc. Notes
13.0% due 04/15/03 ..................................... 140 130
Hyperion Telecommunications, Inc. - Sr. Notes
12.25% due 09/01/04 .................................... 50 52
Insight Midwest
9.75% due 10/01/09 ..................................... 185 182
Intermedia Communications, Inc. - Sr. Notes
8.875% due 11/01/07 .................................... 275 258
KMC Telecom Holdings, Inc. - Sr. Disc. Notes
1.0% due 02/15/08 ...................................... 275 135
Level 3 Communications, Inc. - Sr. Notes
9.125% due 05/01/08 .................................... 30 27
Level 3 Communications, Inc. - Sr. Notes 144A (a)
11.25% due 03/15/10 .................................... 200 197
McleodUSA, Inc.
8.125% due 02/15/09 .................................... 175 158
Sr. Notes
8.375% due 03/15/08 .................................... 230 210
9.5% due 11/01/08 ...................................... 30 29
173
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
PUBLICLY-TRADED BONDS - Continued
Telecommunication Services - Continued
Nextel Communications, Inc. - Sr. Disc. Notes
1.0% due 10/31/07 ...................................... $ 650 $ 484
NTL Communications Corp. - Sr. Notes
1.0% due 10/01/08 ...................................... 615 397
RCN Corp.
10.0% due 10/15/07 ..................................... 200 165
RCN Corp. - Sr. Disc. Notes
1.0% due 07/01/08 ...................................... 325 176
RSL Communications plc
9.125% due 03/01/08 .................................... 100 64
Satelites Mexicanos SA - Sr. Notes
10.125% due 11/01/04 ................................... 125 81
Telecommunications Techniques Co.
9.75% due 05/15/08 ..................................... 140 129
Time Warner Telecom Llc - Sr. Notes
9.75% due 07/15/08 ..................................... 175 170
-------
3,908
Telephone - 1.9%
e.spire Communications, Inc. - Sr. Disc. Notes
1.0% due 04/01/06 ...................................... 75 32
ITC DeltaCom, Inc. - Sr. Notes
8.875% due 03/01/08 .................................... 25 23
9.75% due 11/15/08 ..................................... 75 71
NEXTLINK Communications, Inc. - Sr. Disc. Notes
1.0% due 04/15/08 ...................................... 300 188
NEXTLINK Communications, Inc. - Sr. Notes 144A (a)
10.5% due 12/01/09 ..................................... 75 74
Viatel, Inc. - Sr. Notes
11.25% due 04/15/08 .................................... 125 94
-------
482
Transportation Services - 0.6%
Dunlop Standard Aero Holdings - Sr. Notes
11.875% due 05/15/09 ................................... 150 147
-------
TOTAL PUBLICLY-TRADED BONDS- 93.1% 23,562
Shares
PREFERRED STOCK
Media - Publishing - 0.4%
Primedia, Inc. ......................................... 1,250 106
Telephone - 0.5%
Nextlink Communicatons - Series B ...................... 120 118
-------
TOTAL PREFERRED STOCK- 0.9% 224
WARRANTS
Telecommunication Services - 0.0%
KMC Telecom Holdings, Inc. - WT 144A (a)
expires 01/31/08 (Cost $0) ............................. 250 1
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 6.0%
Investment in joint trading account (Note B)
6.853% due 07/03/00 ................................... $ 1,526 $ 1,526
------- -------
TOTAL INVESTMENTS- 100.0% 25,313
Payables, less cash and receivables- 0.0% (11)
------- -------
NET ASSETS- 100.0% 25,302
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, 2000, securities aggregated $977 or 3.86%
of net assets of the Portfolio.
See notes to financial statements.
174
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
CORPORATE BONDS
United States - 11.4%
Discover Card (LEND)
6.251% due 09/16/05 ...................... $ 2,600 $ 2,602
First USA Credit Card Master Trust (LEND)
6.838% due 08/19/08 ...................... 2,600 2,602
Standard Credit Card Master Trust (LEND)
8.25% due 01/07/07 ....................... 2,000 2,069
--------
TOTAL CORPORATE BONDS- 11.4% 7,273
PUBLICLY-TRADED BONDS
Belgium - 4.8%
Kingdom of Belgium - Bonds (GOVF)
9.0% due 03/28/03 ........................ 2,900 3,029
Canada - 2.0%
Government of Canada - Bonds (GOVF)
7.0% due 12/01/06 ........................ 1,100 783
8.0% due 06/01/23 ........................ 600 514
--------
1,297
France - 3.9%
Government of France - Bonds (GOVF)
5.25% due 04/25/08 ....................... 1,100 1,049
Government of France - O.A.T. (GOVF)
5.5% due 04/25/07 ........................ 90 87
Government of France - Bonds (GOVF)
6.0% due 10/25/25 ........................ 1,357 1,357
--------
2,493
Germany - 1.4%
Federal Republic of Germany - Bonds (GOVF)
6.25% due 01/04/24 ....................... 833 868
Italy - 4.6%
Republic 0f Italy (GOVF)
5.0% due 02/15/03 ........................ 1,700 1,616
3.25% due 04/15/04 ....................... 1,500 1,332
--------
2,948
Japan - 13.7%
Government of Japan - Bonds (GOVF)
1.9% due 03/20/09 ........................ 472,000 4,542
2.4% due 03/20/20 ........................ 122,200 1,195
Government of Japan - Bonds (JP) (GOVF)
3.0% due 09/20/05 ........................ 290,000 2,973
--------
8,710
Netherlands - 8.3%
Government of Netherlands - Bonds (GOVF)
6.5% due 04/15/03 ........................ 1,500 1,480
Netherlands Government - Bonds Series 1 &
2 (GOVF)
6.0% due 01/15/06 ........................ 600 591
Repsol International Finance (FINL)
4.699% due 12/14/00 ...................... 3,400 3,242
--------
5,313
Spain - 2.6%
Government of Spain (GOVF)
5.25% due 01/31/03 ....................... 1,750 1,669
Supra National - 8.4%
European Investment Bank - Bond (BANK)
5.875% due 05/12/09 ...................... 1,770 1,618
International Bank Recon & Development -
Notes (BANK)
5.25% due 01/12/09 ....................... 1,770 1,554
International-American Development Bank -
Bonds (BANK)
1.9% due 07/08/09 ........................ 100,000 958
Scottish Power plc - ADR (UTIE)
6.625% due 01/14/10 ...................... 850 1,246
--------
5,376
United Kingdom - 3.3%
U.K. Treasury - Bonds (GOVF)
6.0% due 12/07/28 ........................ 360 680
U.K. Treasury (GOVF)
7.25% due 12/07/07 ....................... 845 1,413
--------
2,093
United States - 27.6%
Chase Credit Card Master Trust (LEND)
5.125% due 02/15/05 ...................... 1,600 1,489
U.S. Treasury - Bonds (GOVE)
5.875% due 11/15/04 ...................... 6,450 6,356
6.125% due 08/15/29 ...................... 1,470 1,485
6.25% due 02/28/02 ....................... 2,050 2,043
6.25% due 08/15/23 ....................... 1,000 1,008
6.75% due 08/15/26 ....................... 2,040 2,195
7.25% due 05/15/16 ....................... 1,000 1,102
U.S. Treasury - Bills (GOVE)
8.875% due 02/15/19 ...................... 1,500 1,931
--------
17,609
--------
TOTAL PUBLICLY-TRADED BONDS- 80.6% 51,405
175
<PAGE>
SCHEDULE OF INVESTMENTS -- Continued
(UNAUDITED)
JOHN HANCOCK VARIABLE SERIES TRUST I
June 30, 2000
--------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
Par Market
Name of Issuer Value Value
(000's) (000's)
SHORT-TERM INVESTMENTS - 8.2%
United States - 8.2%
Investment in joint trading account
(Note B)
6.853% due 07/03/00 ..................... $ 4,950 $ 4,950
U.S. Treasury (GOVE) .....................
5.83% due 12/10/00 ...................... 300 294
--------
5,244
-------- --------
TOTAL INVESTMENTS- 100.2% 63,930
Payables, less cash and receivables- (0.2)% (166)
-------- --------
NET ASSETS- 100.0% 63,764
ADR-American Depository Receipts
See notes to financial statements.
SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY
Market % of
Industry Value Long-Term
Industry Abbreviation (000's) Investments
U.S. Governmental............ GOVE 16,120 27.5%
Personal and Commercial
Lending..................... LEND 8,762 14.9%
Foreign Governmental......... GOVF 25,177 42.9%
Financial Services........... FINL 3,242 5.5%
Electric Power............... UTIE 1,246 2.1%
Banks........................ BANK 4,131 7.1%
--------- --------
$ 58,678 100.0%
========= ========
176
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(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 thirty-three portfolios: Large Cap Growth,
Fundamental Mid Cap Growth, Aggressive Balanced, Active Bond (formerly,
Sovereign Bond), Core Bond, Emerging Markets Equity, International Equity Index,
International Opportunities II (formerly, Global Equity), International Equity,
Small Cap Growth, Global Balanced (formerly, International Balanced), Mid Cap
Growth, Mid Cap Blend, Large Cap Value, Large Cap Value CORE, American Leaders
Large Cap Value, Large/Mid Cap Value, Money Market, Mid Cap Value, Small/Mid Cap
Growth (formerly, Diversified Mid Cap Growth), Bond Index, Large Cap Aggressive
Growth, Small/Mid Cap CORE, Small/Mid Cap Value, 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)
Portfolios. 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 Variable Life
Insurance Account UV ("JHVLAUV"), 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") and to Investors Partner Life Account L ("IPLL") to fund
contracts and policies issued by Investors Partner Life ("IPL").
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, Fundamental Mid Cap
Growth, Aggressive Balanced, Emerging Markets Equity, Small Cap Growth, Mid Cap
Growth, Mid Cap Blend, Large Cap Value, Large Cap Value CORE, American Leaders
Large Cap Value, Large/Mid Cap Value, Mid Cap Value, Small/Mid Cap Growth, Large
Cap Aggressive Growth, Small/Mid Cap CORE, Small/Mid Cap Value, 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 Active Bond, Core 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 Equity Index, International Opportunities II,
International Equity, Global Balanced and International Opportunities
Portfolios: Investments in securities traded on national securities exchanges in
the United
177
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B -- ACCOUNTING POLICIES -- Continued
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.
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,
Aggressive Balanced, Emerging Markets Equity, International Equity Index,
International Opportunities II, International Equity, Global Balanced, Mid Cap
Growth, Large Cap Value, Large Cap Value CORE, Mid Cap Value, Small/Mid Cap
Growth, Large Cap Aggressive Growth, Small/Mid Cap CORE, Small/Mid Cap Value,
Growth & Income, Managed, Small Cap Value, International Opportunities and
Equity Index Portfolios are shown net of foreign taxes withheld of $3,728, $60,
$194, $2,011, $392, $107, $168, $37, $2,118, $109, $497, $335, $41, $66, $36,
$23,832, $11,766, $793, $690 and $3,047, respectively. Realized gains and losses
from security transactions are determined on the basis of identified cost.
Securities Lending: Certain Portfolios (Large Cap Growth, Active Bond,
International Equity Index, Small Cap Growth, Mid Cap Growth, Large Cap Value,
Mid Cap Value, Small/Mid Cap Growth, Growth & Income, Managed, Short-Term Bond,
International Opportunities and Global Bond) may lend their securities to
certain qualified brokers who pay these Portfolios negotiated lender fees. The
loans are collateralized at all times with cash or securities with a market
value at least equal to the market value of the securities on loan. As with
other extensions of credit, these Funds may bear the risk of delay of the loaned
securities in recovery or even loss of rights in the collateral should the
borrower of the securities fail financially. At June 30, 2000, the market value
of the securities loaned and the market value of the collateral were as follows.
Value of Securities Loaned Value of Collateral
-------------------------- -------------------
Large Cap Growth ........... $ 54,442 $ 54,442
Active Bond ................ 116,986 119,423
International Equity Index . 33,721 35,163
Small Cap Growth ........... 59,949 60,851
Mid Cap Growth ............. 88,147 90,466
Large Cap Value ............ 6,106 6,467
Mid Cap Value .............. 23,697 24,688
Small/Mid Cap Growth ....... 33,275 34,708
Growth & Income ............ 87,343 87,343
Managed .................... 147,841 149,887
Short-Term Bond ............ 4,655 4,727
International Opportunities 11,816 12,124
Global Bond ................ 4,376 4,460
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
178
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B--ACCOUNTING POLICIES--CONTINUED
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 Active Bond and Small 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.
The International Equity, Large Cap Value CORE and Small/Mid Cap CORE
Portfolios of the Fund, along with other registered investment companies having
a management contract with Goldman Sachs Asset Management (the "Sub-Adviser"),
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, 2000:
Par Market
Name of Issuer Value Value
-------------- -------- ---------
American Express Co.
8.50% due 07/03/00 ...................... $ 50,000 $ 50,000
Chevron USA, Inc.
7.72% due 07/03/00 ...................... 45,404 45,404
DaimlerChrysler Holdings Corp.
8.50% due 07/05/00 ..................... 50,000 49,981
Deere & Co.
7.35% due 07/05/00 ..................... 43,218 43,202
Exxon Asset Management Co.
8.50% due 07/06/00 ..................... 50,000 49,972
Ford Credit Europe PLC
8.50% due 07/03/00 ..................... 50,000 50,000
General Electric Cap. Corp.
8.50% due 07/06/00 ..................... 50,000 49,972
Household Finance Corp.
8.49% due 07/07/00 ..................... 49,996 49,959
Norwest Finl., Inc.
8.49% due 07/07/00 ..................... 50,000 49,963
Prudential FDG Corp.
8.50% due 07/03/00 ..................... 50,000 50,000
Texaco, Inc.
8.50% due 07/05/00 ..................... 50,000 49,981
179
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B -- ACCOUNTING POLICIES -- Continued
Par Market
Name of Issuer Value Value
-------------- -------- ---------
UBS Fin., Inc.
4.27% due 07/05/00 ..................... $ 25,100 $ 25,090
UBS Fin., Inc.
4.19% due 07/06/00 ..................... 24,666 24,652
-------- --------
Joint Trading Account Totals ......... $588,384 $588,176
======== ========
Financial Futures Contracts: The Active Bond, Emerging Markets Equity,
International Equity Index, International Equity, Small Cap Growth, Global
Balanced, Mid Cap Growth, Large Cap Value CORE, 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, 2000, open positions in
financial futures contracts were as follows:
INTERNATIONAL EQUITY INDEX PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Gain/(Loss)
--------- ---------- ---------- -----------
12 contracts
CAC-40 Index Future ................ Sept. 2000 $ 744 $ (12)
6 contracts
DAX Index Future ................... Sept. 2000 995 (58)
10 contracts
FTSE 100 Index Future .............. Sept. 2000 962 (34)
18 contracts
Nikkei 225 Index Future ............ Sept. 2000 1,577 35
------ ------
$4,278 $ (69)
====== ======
MANAGED PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Gain/(Loss)
--------- ---------- ---------- -----------
325 contracts
U.S. 10 Year Treasury Note Future .. Sept. 2000 32,007 $ 282
180
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B -- ACCOUNTING POLICIES -- Continued
LARGE CAP VALUE CORE PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Loss
--------- ---------- ---------- ------------
10 contracts
CME E-Mini S&P 500 Index Future ....... Sept. 2000 $734 $(7)
EQUITY INDEX PORTFOLIO
Face
Expiration Amount Unrealized
Purchased Date at Value Loss
--------- ---------- ---------- ------------
42 contracts
S&P 500 Index Futures ................. Sept. 2000 $15,415 $(290)
GLOBAL BOND PORTFOLIO
Face
Expiration Amount Unrealized
Sold Date at Value Loss
---- ---------- ---------- ------------
64 contracts
U.S. 5 Year Treasury Note Future ...... Sept. 2000 $6,337 $(12)
21 contracts
U.S. 10 Year Treasury Note Future ..... Sept. 2000 2,068 (26)
---------- -----------
$8,405 $(38)
---------- -----------
Purchase
--------
74 contracts
Germany 10 Year Treasury Note Future .. Sept. 2000 $ 7,423 $ (41)
21 contracts
Germany 5 Year Treasury Note Future ... Sept. 2000 2,069 (1)
-------
9,492 (42)
--------
$17,897 $ (80)
======== =======
At June 30, 2000, the International Equity Index, Large Cap Value CORE and
Small/Mid Cap CORE portfolios had deposited $30, $80 and $135, respectively, in
a segregated account to cover margin requirements on open financial futures
contracts.
Forward Foreign Currency Contracts: The Fund may use forward foreign currency
contracts to facilitate transactions in foreign securities and to manage a
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
181
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE B -- ACCOUNTING POLICIES -- Continued
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, 1999, the Fund had approximate net tax basis capital loss
carryforwards, which may be applied against any net taxable gains, as follows:
Active Bond had $21,049, which expires in 2007; International Opportunities II
had $281, which expires in 2006; Money Market had $14, which expires in 2007;
Mid Cap Value had $8,121, which expires in 2006 and $1,558, which expires in
2007; Bond Index had $158, which expires in 2007; Small/Mid Cap CORE had $25,
which expires in 2006; Real Estate Equity had $4,280, which expires in 2007;
Short-Term Bond had $131, which expires in 2006 and $1,304, which expires in
2007; Small Cap Value had $1,445, which expires in 2006; High Yield Bond had
$276, which expires in 2007; and Global Bond had $1,234, which expires in 2007.
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 16, 2000, 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, Active 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, 1.10% on an annual basis of the first
$50,000 of the Portfolio's net assets, 1.00% for net assets between $50,000
and $100,000; 0.90% for net assets between $100,000 and $200,000 and 0.80% for
net assets in excess of $200,000;
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 and Mid Cap Blend Portfolios, 0.75% on an
annual basis of the first $250,000 of the net assets of each Portfolio; 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 American Leaders Large Cap Value Portfolio, 0.80% on an annual
basis of the first $50,000 of the
182
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES -- Continued
Portfolio's net assets; 0.65% for the net assets between $50,000 and $250,000;
0.60% for the net assets between $250,000 and $500,000; and 0.55% for net
assets in excess of $500,000;
For the Short-Term Bond Portfolio, 0.30% on an annual basis of its net
assets;
For the 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 International Opportunities II Portfolio, 1.00% on an annual basis
of the first $20,000 of the Portfolio's net assets; voted on June 7, 0.85% for
net assets between $20,000 and $30,000; and 0.75% for net assets in excess of
$50,000;
For the Core Bond Portfolio, 0.70% on an annual basis of the first $25,000
of the Portfolio's net assets; 0.65% for the net assets between $25,000 and
$50,000; 0.60% for the net assets between $50,000 and $150,000; 0.55% for the
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% 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;
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;
For the Fundamental Mid Cap Growth Portfolio, 0.85% on an annual basis of
the first $50,000 of the Portfolio's net assets; 0.80% for net assets between
$50,000 and $100,000; 0.75% for net assets between $100,000 and $150,000; and
0.70% for net assets in excess of $150,000;
For the Aggressive Balanced Portfolio, 0.675% on an annual basis of the
first $250,000 of the Portfolio's net assets; 0.625% for net assets between
$250,000 and $500,000; and 0.60% for net assets in excess of $500,000;
183
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES -- Continued
For the International Equity Portfolio, 1.0% on an annual basis of the
first $50,000 of the Portfolio's net assets; 0.95% for net assets between
$50,000 and $200,000; and 0.90% for net assets in excess of $200,000;
For the Large Cap Value CORE Portfolio, 0.75% on an annual basis for the
first $50,000 of the Portfolio's net assets; 0.65% for net assets between
$50,000 and $200,000; and 0.60% in excess of $200,000;
For the Large/Mid Cap Value Portfolio, 0.95% on an annual basis for the
first $25,000 of the Portfolio's net assets; 0.85% for net assets between
$25,000 and $50,000; 0.75% for net assets between $50,000 and $100,000; and
0.65% for net assets in excess of $100,000;
For the Large Cap Aggressive Growth Portfolio, 1.0% on an annual basis for
the first $10,000 of the Portfolio's net assets; 0.875% for net assets between
$10,000 and $20,000; 0.75% for net assets in excess of $20,000;
For the Small/Mid Cap Value Portfolio, 0.95% on an annual basis for the
first $100,000 of the Portfolio's net assets; 0.90% for net assets between
$100,000 and $250,000; 0.85% for net assets in excess of $250,000.
John Hancock has entered into Sub-Advisory Agreements with Independence
Investment Associates, Inc., with respect to the Large Cap Growth, Aggressive
Balanced, Mid Cap Blend, Real Estate Equity, Growth & Income, Managed and
Short-Term Bond; with Independence International Associates, Inc., with respect
to the International Equity Index Portfolio; with John Hancock Advisers, Inc.,
with respect to the Active 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, Inc., with respect to the International
Opportunities and International Opportunities II Portfolios; with Janus Capital
Corporation, with respect to the Mid Cap Growth Portfolio; with Neuberger
Berman, LLC, with respect to the Mid Cap Value Portfolio; with INVESCO
Management & Research, Inc., 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 Global Balanced
Portfolio; with State Street Global Bank & Trust N.A., with respect to the
Equity Index Portfolio; with Goldman Sachs Asset Management, with respect to the
International Equity, Large Cap Value CORE and Small/Mid Cap CORE Portfolios;
with Morgan Stanley Dean Witter Investment Management, Inc., with respect to the
Emerging Markets Equity and Real Estate Equity Portfolios; with Mellon Bond
Associates, LLP, with respect to the Bond Index Portfolio; with Wellington
Management Company, LLP, with respect to the Large/Mid Cap Value, Small/Mid Cap
Growth and High Yield Bond Portfolios; with Oppenheimer Funds, Inc. with respect
to the Fundamental Mid Cap Growth Portfolio; with Alliance Capital Management,
LLP, with respect to the Large Cap Aggressive Growth Portfolio; and with The
Boston Company Asset Management, LLC, with respect to the Small/Mid Cap Value
Portfolio; 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, JHVAAJF, and IPL 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, 2000, the reimbursements paid from
John Hancock and JHVLICO were $2 to Fundamental Mid Cap Growth, $10 to
184
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE C -- INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH
AFFILIATES -- Continued
Aggressive Balanced, $250 to Emerging Markets Equity, $105 to International
Equity Index, $23 to International Opportunities II, $26 to International
Equity, $39 to International Balanced, $19 to Mid Cap Blend, $28 to Large Cap
Value CORE, $11 to Large/Mid Cap Value, $17 to Small/Mid Cap Growth, $36 to Bond
Index, $6 to Large Cap Aggressive Growth, $37 to Small/Mid Cap CORE, $13
Small/Mid Cap Value, $4 to Small Cap Value, $78 to International Opportunities,
$29 to High Yield Bond and $4 to Global Bond.
185
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(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, 2000
were as follows:
Sales and
Purchases Maturities
--------- ----------
Large Cap Growth .............................. $ 783,869 $ 752,688
Fundamental Mid Cap Growth .................... 29,939 145,685
Aggressive Balanced ........................... 50,020 12,398
Active Bond ................................... 917,035 950,528
CORE Bond ..................................... 4,847 None
Emerging Markets Equity ....................... 43,946 23,705
International Equity Index .................... 14,434 11,149
International Opportunities II ................ 22,789 19,254
International Equity .......................... 8,789 6,343
Small Cap Growth .............................. 244,738 140,227
International Balanced ........................ 26,660 25,935
Mid Cap Growth ................................ 590,319 463,638
Mid Cap Blend ................................. 9,143 5,969
Large Cap Value ............................... 46,769 39,157
Large Cap Value CORE .......................... 7,449 3,256
Large/Mid Cap Value ........................... 5,696 3,194
Money Market .................................. None None
Mid Cap Value ................................. 87,817 86,642
Small/Mid Cap Growth .......................... 83,988 93,860
Bond Index .................................... 12,740 5,022
Large Cap Aggressive Growth ................... 16,266 6,789
Small/Mid Cap CORE ............................ 11,964 3,996
Small/Mid Cap Value ........................... 10,972 7,527
Real Estate Equity ............................ 23,231 20,671
Growth & Income ............................... 1,845,146 2,079,783
Managed ....................................... 3,296,775 3,450,219
Short-Term Bond ............................... 18,123 14,498
Small Cap Value ............................... 43,419 39,824
International Opportunities ................... 46,538 20,381
Equity Index .................................. 124,872 71,289
High Yield Bond ............................... 9,072 2,691
Global Bond ................................... 69,624 77,336
186
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(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, 2000 for
federal income tax purposes are as follows:
Net Unrealized
Identified Unrealized Unrealized Appreciation/
Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ ----------------
Large Cap Growth ...... $1,154,089 $ 374,071 $ (43,691) $ 330,379
Fundamental Mid Cap
Growth ............... 22,174 5,942 (796) 5,145
Aggressive Balanced ... 13,569 1,335 (642) 693
Active Bond ........... 776,877 6,492 (18,249) (11,757)
Core Bond ............. 4,847 None (6) (6)
Emerging Markets
Equity ............... 46,820 4,808 (4,677) (130)
International Equity
Index ................ 189,149 59,457 (19,808) 39,650
International
Opportunities II ..... 24,986 2,236 (1,171) 1,064
International Equity .. 13,166 1,615 (634) 981
Small Cap Growth ...... 238,508 67,564 (22,372) 45,192
International Balanced 29,322 1,667 (1,513) 155
Mid Cap Growth ........ 473,175 106,800 (54,068) 52,731
Mid Cap Blend ......... 8,955 1,229 (484) 745
Large Cap Value ....... 157,006 10,316 (15,583) (5,267)
Large Cap Value CORE .. 10,609 585 (985) (400)
Large/Mid Cap Value ... 8,258 560 (637) (77)
Money Market .......... 416,264 None None None
Mid Cap Value ......... 90,206 9,930 (4,194) (5,736)
Small/Mid Cap Growth .. 162,267 30,340 (13,863) 16,477
Bond Index ............ 46,923 124 (1,772) (1,648)
Large Cap Aggressive
Growth ............... 22,281 3,589 (1,166) 2,423
Small/Mid Cap CORE .... 14,900 2,927 (1,450) 1,477
Small/Mid Cap Value ... 9,633 967 (590) 377
Real Estate Equity .... 64,263 7,840 (2,248) 5,592
Growth & Income ....... 3,183,516 946,769 (193,404) 753,365
Managed ............... 849,123 501,163 (119,757) 381,406
Short-Term Bond ....... 69,580 47 (1,190) (1,144)
Small Cap Value ....... 71,814 5,698 (7,379) (1,681)
International
Opportunities ........ 83,887 18,764 (3,637) 15,128
Equity Index .......... 437,541 120,002 (36,085) 83,916
High Yield Bond ....... 25,505 373 (2,091) (1,718)
Global Bond ........... 61,870 421 (2,021) (1,600)
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.
NOTE E--FORWARD FOREIGN CURRENCY CONTRACTS
As of June 30, 2000 the International Equity Index, Global 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:
187
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE E -- FORWARD FOREIGN CURRENCY CONTRACTS -- Continued
INTERNATIONAL EQUITY INDEX PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Purchased Date Cost Value (Depreciation)
----------------------------------- -------- ------ ------ ----------------
Euro Dollar ............. 1,096 9/15/00 $1,058 $1,051 $ (7)
Japanese Yen ........... 154,376 9/14/00 1,486 1,475 (11)
Pound Sterling ......... 654 9/15/00 985 991 6
--------------
$ (12)
==============
GLOBAL BALANCED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
----------------------------------- -------- ------ ------ ----------------
Canadian Dollar ......... 450 09/27/00 $ 307 $ 305 $ 3
Danish Krone ........... 4,800 09/27/00 632 616 16
Japanese Yen ............ 193,000 09/27/00 1,855 1,848 7
Pound Sterling .......... 1,750 09/27/00 2,721 2,652 69
Swedish Krona ........... 9,000 09/27/00 1,053 1,027 26
Swiss Franc ............. 350 09/27/00 205 216 (12)
Euro Dollar ............. 1,900 09/27/00 1,821 1,824 (3)
--------------
106
--------------
Currency Purchased
-----------------------------------
Australian Dollar ....... 3,100 09/27/00 1,847 1,857 10
Euro Dollar ............. 6,850 09/27/00 6,586 6,575 (11)
Japanese Yen ............ 12,000 09/27/00 120 115 (5)
Danish Krone ............ 2,600 09/27/00 313 334 21
Swedish Krona ........... 7,200 09/27/00 837 822 (16)
Swiss Franc ............. 800 09/27/00 491 494 3
--------------
2
--------------
$ 108
==============
188
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- Continued
JOHN HANCOCK VARIABLE SERIES TRUST I
(UNAUDITED)
June 30, 2000
--------------------------------------------------------------------------------
(000's Omitted)
NOTE E -- FORWARD FOREIGN CURRENCY CONTRACTS -- Continued
MANAGED PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
--------------------------------- -------- ------- -------- ----------------
Australian Dollar ... 2,623 10/04/00 $ 1,501 $ 1,571 $ (71)
Canadian Dollar ..... 13,227 10/04/00 8,810 8,959 (149)
Danish Krone ........ 25,979 10/04/00 3,182 3,335 (153)
Euro Dollar ......... 107,569 10/04/00 98,617 103,299 (4,682)
Euro Dollar ......... 30,379 10/05/00 29,084 29,174 (90)
Euro Dollar ......... 24,675 10/06/00 22,590 23,698 (1,108)
Japanese Yen ........ 9,095,320 10/04/00 86,637 87,205 (568)
Japanese Yen ........ 2,366,167 10/05/00 22,590 22,691 (101)
Japanese Yen ........ 3,967,994 10/06/00 37,650 38,059 (409)
Pound Sterling ...... 17,671 10/06/00 26,423 26,787 (364)
Pound Sterling ...... 11,156 10/04/00 16,484 16,910 (426)
Swedish Krona ....... 33,457 10/04/00 3,679 3,820 (140)
Swiss Franc ......... 64,271 10/04/00 22,590 23,769 (1,179)
Swiss Franc ......... 25,843 10/04/00 15,650 15,984 (334)
--------------
(9,774)
--------------
Currency Purchased
---------------------------------
Euro Dollar ........ 37,572 10/05/00 36,168 36,083 (85)
Euro Dollar ........ 24,317 10/06/00 22,590 23,355 765
Japanese Yen ....... 4,550,340 10/05/00 43,842 43,636 (206)
Japanese Yen ....... 3,942,972 10/06/00 37,650 37,819 169
Pound Sterling ..... 17,421 10/06/00 26,423 26,409 (15)
Swiss Franc ........ 48,959 10/05/00 29,818 30,281 463
Swiss Franc ........ 37,723 10/06/00 22,590 23,333 743
--------------
1,834
--------------
$(7,940)
==============
GLOBAL BOND PORTFOLIO
Net Unrealized
Maturity Appreciation/
Currency Sold Date Cost Value (Depreciation)
--------------------------------- -------- ------- ------- ----------------
Canadian Dollar ... 1,796 07/11/00 $ 1,207 $ 1,214 $ (7)
Euro Dollar ....... 23,476 07/11/00 21,082 22,429 (1,346)
--------------
(1,353)
--------------
Currency Purchased
---------------------------------
Euro Dollar ...... 6,894 07/11/00 6,555 6,586 31
--------------
$(1,322)
==============
189
<PAGE>
Officers and Trustees
Michele G. Van Leer, Chairman
Thomas J. Lee, President and Vice Chairman
Karen Q. Visconti, Secretary
Arnold Bergman, Assistant Secretary
Raymond F. Skiba, Treasurer
Maryellen Maurer, Compliance Officer
Patrick F. Smith, Controller
Paula M. Pashko, Assistant Controller
Elizabeth G. Cook
Reverend Diane C. Kessler
Hassell H. McClellan
Robert F. Verdonck
Investment Adviser
John Hancock Life Insurance Company
John Hancock Place
P.O. Box 111
Boston, MA 02117
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
SUB-INVESTMENT ADVISERS
Independence Investment Associates, Inc. and subsidiaries
53 State Street
Boston, MA 02109
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, NY 10105
The Boston Company Asset Management, LLC
One Boston Place
Boston, MA 02108
Brinson Partners, Inc.
209 South La Salle Street
Chicago, IL 60604-1295
Federated Investment Management Company
1001 Liberty Avenue, 10th Floor
Pittsburgh, PA 15222
Goldman Sachs Asset Management
32 Old Slip
New York, NY 10005
INVESCO, Inc.
101 Federal Street
Boston, MA 02110
J.P. Morgan Investment Management Inc.
522 Fifth Avenue
New York, NY 10036
Janus
100 Fillmore Street
Denver, CO 80206-4928
Mellon Bond Associates, LLP
One Mellon Bank Center, Suite 5400
Pittsburgh, PA 15258-0001
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, MA 02199
Morgan Stanley Investment Management Inc.
1221 Avenue of the Americas
New York, NY 10020
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
OppenheimerFunds, Inc.
Two World Trade Center
New York, NY 10048-0203
Rowe Price-Fleming International, Inc.
100 East Pratt Street
Baltimore, MD 21202
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
<PAGE>
[LOGO OF JOHN HANCOCK]
The Variable Series Trust consists of 33 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 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
S8128 7/00 [LOGO OF INSURANCE MARKETPLACE
STANDARDS ASSOCIATION]
<PAGE>
[LOGO OF JOHN HANCOCK]
The Variable Series Trust consists of 33 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 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 INSURANCE MARKETPLACE STANDARDS ASSOCIATION]
S8128FI 7/00
<PAGE>
PART C
OTHER INFORMATION
Item 15. Indemnification
In response to this item and the requirements of Rule 484 under the
Securities Act of 1933, Registrant hereby incorporates by reference its response
to item 25 in Post-Effective Amendment No. 25 to its Form N-1A registration
statement (File No. 33-2081) filed on May 11, 2000.
Item 16. Exhibits
(1) Declaration of Trust of John Hancock Variable Series Trust I, dated February
21, 1988 (Filed Herewith).
(2) By-Laws of John Hancock Variable Series Trust I, amended and restated as of
September 27, 2000 (Filed Herewith).
(3) Not Applicable.
(4) Form of Plan and Agreement of Reorganization (Filed Herewith).
(5) Not Applicable.
(6)(a) Investment Management Agreement By and Between John Hancock Variable
Series Trust I and John Hancock Life Insurance Company relating to the Equity
Index, Large Cap Value, Mid Cap Growth, Mid Cap Value, Small Cap Growth, Small
Cap Value, Global Bond, International Opportunities, and International Balanced
Funds, incorporated by reference from Post-Effective Amendment No. 13 to the
Trust's Form N-1A registration statement (File No. 33-2081), filed on April 30,
1996.
(6)(b) Sub-Investment Management Agreement Among John Hancock Variable Series
Trust I, Rowe Price-Fleming International, Inc., and John Hancock Life Insurance
Company, relating to the International Opportunities Fund, incorporated by
reference from Post-Effective Amendment No. 13 to the Trust's Form N-1A
registration statement (File No. 33-2081), filed on April 30, 1996.
(7) Underwriting and Indemnity Agreement among John Hancock Variable Series
Trust I, Signator Investors, Inc., (formerly named John Hancock Distributors,
Inc.), and John Hancock Life Insurance Company, incorporated by reference to
Post-Effective Amendment No. 14 to the Trust's Form N-1A registration statement
(File No. 33-2081), filed on February 28, 1997.
(8) Not Applicable.
<PAGE>
(9)(a) Custodian Agreement Between John Hancock Variable Series Trust I and
State Street Bank and Trust Company, dated January 30, 1995, relating to the
International Equity Index and Small/Mid Cap CORE Fund (To be Filed by
Pre-Effective Amendment).
(9)(b) Amendment dated as of March 18, 1996 to Custodian Agreement dated January
30, 1995, between John Hancock Variable Series Trust I and State Street Bank and
Trust Company, expanding the Agreement to cover the International Opportunities
Fund and certain additional Funds, incorporated by reference from Post-Effective
Amendment No. 13 to the Trust's Form N-1A registration statement (File No.
33-2081), filed on April 30, 1996.
(9)(c) Amendment dated as of December 18, 1998 to Custodian Agreement dated
January 30, 1995, between John Hancock Variable Series Trust I and State Street
Bank and Trust Company, addressing "eligible foreign custodians" within the
meaning of Rule 17f-5, as amended, incorporated by reference from Post-Effective
Amendment No. 24 to the Trust's Form N-1A registration statement (File No.
33-2081), Filed on April 6, 2000.
(10) Not Applicable.
(11) Form of Opinion of Counsel as to Legality of Securities (To be Filed by
Pre-Effective Amendment).
(12) Included in Exhibit (4).
(13) Not Applicable.
(14) Consent of Independent Public Accountants to the incorporation by reference
of their opinion into the Statement of Additional Information (To be Filed by
Pre-Effective Amendment).
(15) Not Applicable.
(16) Powers of Attorney for Elizabeth G. Cook, Diane C. Kessler, Michele G. Van
Leer, Hassell H. McClellan, and Robert F. Verdonck, incorporated by reference
from Post-Effective Amendment No. 25 to the Trust's Form N-1A registration
statement (File No. 33-2081), filed on May 11, 2000.
(17) Not Applicable.
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public reoffering of the
securities registered through the use of a prospectus which is a part of this
registration statement by any person or party who is deemed to be an underwriter
within the meaning of Rule 145(c) of the Securities Act of 1933, the reoffering
prospectus will contain the information called for by the
C-2
<PAGE>
applicable registration form for reofferings by persons who may be deemed
underwriters, in addition to the information called for by the other items of
the applicable form.
(2) The undersigned Registrant agrees that every prospectus that is filed under
paragraph (1) above will be filed as a part of an amendment to the registration
statement and will not be used until the amendment is effective, and that, in
determining any liability under the Securities Act of 1933, each post-effective
amendment shall be deemed to be a new registration statement for the securities
offered therein, and the offering of the securities at that time shall be deemed
to be the initial bona fide offering of them.
C-3
<PAGE>
SIGNATURES
As required by the Securities Act of 1933, this registration statement has been
signed on behalf of the Registrant, in the City of Boston and Commonwealth of
Massachusetts, on the 10th day of October, 2000.
JOHN HANCOCK VARIABLE SERIES TRUST I
By: /s/ THOMAS J. LEE
--------------------------------------
Thomas J. Lee, President
As required by the Securities Act of 1933, this registration statement has been
signed by the following persons in the capacities and on the date indicated.
SIGNATURE DATE
By: /s/ RAYMOND F. SKIBA October 10, 2000
---------------------------
Raymond F. Skiba
Treasurer (Principal Financial
and Accounting Officer)
By: /s/ THOMAS J. LEE October 10, 2000
---------------------------
Thomas J. Lee
Vice Chairman, President and Trustee (Acting
Principal Executive Officer)
For himself and as attorney-in-fact for:
Michele G. Van Leer, Chairman
Elizabeth G. Cook, Trustee
Diane C. Kessler, Trustee
Robert F. Verdonck, Trustee
Hassell H. McClellan, Trustee
C-4
