<PAGE>
[LOGO OF JOHN HANCOCK]
ANNUAL REPORT [LOGO OF IA]
December 31, 1999 [LOGO OF ALLIANCE CAPITAL]
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New opportunities. [LOGO OF GOLDMAN SACHS]
Proven strategies. [LOGO OF INVESCO]
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[LOGO OF MELLON]
[LOGO OF MORGAN STANLEY DEAN WITTER]
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[LOGO OF OPPENHEIMERFUNDS]
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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)
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% 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*
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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)
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% 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]
Historical Fund Return
Large-Cap Value Russell 1000
DATE Core Fund Value Index
08/31/99 10,000 10,000
09/30/99 10,001 9,650
10/31/99 9,711 10,206
11/30/99 10,332 10,126
12/31/99 10,358 10,175
Top Ten Holdings (as of December 31, 1999)
- -----------------------------------------------------------------------------
% of six months ago
investments % of investments
Exxon Mobil Corp. 5.4% N/A
AT&T Corp. 3.7% N/A
Citigroup, Inc. 3.4% N/A
SBC Communications, Inc. 2.7% N/A
Bank of America Corp. 2.2% N/A
American International Group, Inc. 2.1% N/A
Chase Manhattan Corp. 1.9% N/A
Chevron Corp. 1.7% N/A
Dow Chemical Co. 1.6% N/A
BCE, Inc. 1.6% N/A
Average Annual Total Returns*
- -----------------------------------------------------------------------------
Large-Cap Russell 1000
Value Core Fund Value Index
---------------------- -----------------------
Since Inception 3.58% 1.75%
(8/31/99)
Top Ten Sectors (as of December 31, 1999)
- -----------------------------------------------------------------------------
% of %of
investments investments
Financial 28.7% Basic Material 6.5%
Utility 17.8% Capital Equipment 4.9%
Energy 10.8% Consumer Staple 3.6%
Consumer Cyclical 10.7% Retail 3.4%
Technology 8.1% Health Care 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 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 the 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.
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]
Historical Fund Return
Large/Mid-Cap Russell 1000
DATE Value Fund Value Index
8/31/99 10,000 10,000
9/30/99 10,001 9,650
10/31/99 9,711 10,206
11/30/99 10,332 10,126
12/31/99 10,472 10,175
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Citigroup, Inc. 5.0% N/A
AT&T Corp. 3.5% N/A
Bell Atlantic Corp. 3.3% N/A
SBC Communications, Inc. 2.3% N/A
Federal National Mortgage Assoc. 2.2% N/A
Pacific Century Financial Corp. 2.2% N/A
Conoco, Inc. 2.2% N/A
U.S. Bancorp 2.0% N/A
American International Group, Inc. 1.8% N/A
Marsh & McLennan Cos., Inc. 1.8% N/A
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Large/Mid-Cap Russell 1000
Value Fund Value Index
---------------------- -----------------------
Since Inception 4.72% 1.75%
(8/31/99)
Top Ten Sectors (as of December 31,1999)
- -----------------------------------------------------------------------------
% of % of
investments investments
Financial 25.9% Capital Equipment 7.1%
Utility 17.6% Basic Equipment 6.0%
Technology 11.3% Retail 3.8%
Energy 9.1% Health Care 2.9%
Consumer Cyclical 8.7% Consumer Staple 2.8%
* 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.
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]
Historical Fund Return
Mid-Cap Russell Mid-Cap
Value Fund Value Index
04/30/96 10,000 10,000
05/31/96 10,096 10,249
06/28/96 10,106 10,095
07/31/96 9,625 9,572
08/30/96 10,029 10,035
09/30/96 10,397 10,516
10/31/96 10,671 10,708
11/29/96 11,341 11,616
12/31/96 11,294 11,618
01/31/97 11,648 12,270
02/28/97 11,846 12,227
03/31/97 11,486 11,872
04/30/97 11,775 12,211
05/30/97 12,470 13,281
06/30/97 12,933 13,423
07/31/97 13,893 14,692
08/29/97 13,730 14,905
09/30/97 14,582 15,713
10/31/97 14,139 15,047
11/28/97 14,616 15,249
12/31/97 15,175 15,355
01/01/98 14,880 15,248
02/01/98 15,874 16,325
03/01/98 16,691 16,945
04/30/98 16,598 16,838
05/29/98 16,211 16,044
06/30/98 16,262 15,464
07/31/98 15,438 14,323
08/31/98 13,267 11,803
09/30/98 14,041 12,171
10/30/98 14,951 13,019
11/30/98 15,476 13,328
12/31/98 15,946 13,615
01/29/99 15,575 13,381
02/26/99 15,232 13,015
03/31/99 15,450 13,076
04/30/99 16,913 14,378
05/28/99 16,984 14,538
06/30/99 17,177 15,114
07/31/99 16,747 14,647
08/31/99 16,169 13,726
09/30/99 15,350 13,080
10/31/99 15,803 13,153
11/30/99 15,513 13,151
12/31/99 15,929 14,367
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Comdisco, Inc. 3.2% N/A
Cadence Design Systems, Inc. 2.4% 1.1%
Parametric Technology Co. 2.3% 1.2%
General Dynamics Corp. 2.2% N/A
Ceridian Corp. 2.2% N/A
SPX Corp. 2.2% 2.7%
Praxair, Inc. 2.1% 1.3%
Lear Corp. 2.1% 2.2%
Global Crossing, Ltd. 2.0% N/A
Maytag Corp. 2.0% N/A
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Mid-Cap Russell Mid-Cap MorningStar
Value Fund Value Index Peer Group+
---------------------- ----------------------- -------------
1 Year 5.52% -0.11% 6.81%
3 Years 7.34 12.15 12.41
Since Inception 10.38 13.54 N/A
(5/1/96)
Top Ten Sectors (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
investments investments
Technology 18.2% Basic Material 9.9%
Financial 17.3% Health Care 5.2%
Consumer Cyclical 14.1% Utility 4.0%
Capital Equipment 12.6% Retail 3.2%
Energy 12.2% Transportation 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. The performance of the fund on this
page is reported net of the 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 Mid-Value
investment style.
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]
Mid-Cap Blend Fund Russell Mid-Cap Index
7/31/99 10,000
8/31/99 10,001 10,000
9/30/99 9,729 9,648
10/31/99 10,182 10,106
11/30/99 10,523 10,369
12/31/99 11,153 11,311
Top Ten Holdings (as of December 31, 1999)
- ----------------------------------------------------------------------------
% of six months ago
investments % of investments
Clear Channel Communications, Inc. 3.1% N/A
Maxim Integrated Products, Inc. 1.8% N/A
Analog Devices, Inc. 1.8% N/A
Convergys Corp. 1.8% N/A
Charter One Financial, Inc. 1.7% N/A
Kansas City Southern Industries, Inc. 1.7% N/A
Tellabs, Inc. 1.7% N/A
Kerr-McGee Corp. 1.5% N/A
Anadarko Petroleum Corp. 1.5% N/A
Black & Decker Corp. 1.5% N/A
Average Annual Total Returns*
- ----------------------------------------------------------------------------
Mid-Cap Russel Mid-
Blend Fund Cap Index
---------- -----------
Since Inception (8/31/99) 11.53% 13.11%
Top Ten Sectors (as of December 31, 1999)
- ----------------------------------------------------------------------------
% of % of
investments investments
Technology 28.4% Utility 6.8%
Financial 12.3% Retail 6.1%
Capital Equipment 11.1% Energy 5.4%
Consumer Cyclical 10.7% Basic Material 5.0%
Health Care 7.0% Transportation 4.0%
* 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. 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.
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]
HISTORICAL FUND RETURN
Russell Mid-Cap Mid-Cap
Growth Index Growth Fund
04/01/96 10,000 10,000
05/31/96 10,204 10,252
06/28/96 9,896 10,020
07/31/96 9,128 9,186
08/30/96 9,621 9,881
09/30/96 10,232 10,473
10/31/96 10,112 10,325
11/29/96 10,708 10,408
12/31/96 10,528 10,269
01/31/97 10,993 9,994
02/28/97 10,751 9,827
03/31/97 10,144 9,079
04/30/97 10,392 9,186
05/30/97 11,323 10,176
06/30/97 11,637 10,693
07/31/97 12,751 10,907
08/29/97 12,626 10,950
09/30/97 13,265 11,734
10/31/97 12,601 11,385
11/28/97 12,733 11,547
12/31/97 12,901 11,980
01/01/98 12,668 11,743
02/27/98 13,859 12,728
03/31/98 14,440 13,429
04/30/98 14,636 13,656
05/29/98 14,034 13,098
06/30/98 14,431 14,211
07/31/98 13,813 14,045
08/31/98 11,177 11,448
09/30/98 12,022 12,370
10/30/98 12,907 13,332
11/30/98 13,778 14,295
12/31/98 15,205 16,660
01/29/99 15,661 17,539
02/26/99 14,895 16,892
03/31/99 15,724 19,064
04/30/99 16,441 20,313
05/28/99 16,230 20,063
06/30/99 17,363 21,164
07/31/99 16,810 20,863
08/31/99 16,635 21,977
09/30/99 16,494 22,828
10/31/99 17,769 26,427
11/30/99 19,609 29,295
12/31/99 23,004 36,370
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
SDL, Inc. 4.1% N/A
VariSign, Inc. 3.9% 2.2%
Paychex, Inc. 3.5% 4.8%
Exodus Communications Inc. 3.3% 4.6%
McLeodUSA, Inc. 3.3% 3.7%
Metromedia Fiber Network, Inc. 3.2% 3.6%
Western Wireless Corp. 3.0% N/A
DoubleClick, Inc. 2.9% N/A
Vitasse Semiconductor Corp. 2.9% 5.0%
Crown Castle International Corp. 2.7% 3.0%
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Mid-Cap Russell Mid-Cap MorningStar
Growth Fund Growth Index Peer Group+
------------- --------------- -------------
1 Year 118.31% 51.29% 57.70%
3 Years 52.43 29.77 28.64
Since Inception (5/1/96) 42.19 25.51 N/A
Top Ten Sectors (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
investments investments
Technology 61.4% Computer Equipment 3.9%
Consumer Cyclical 11.3% Financial 3.9%
Health Care 6.4% Retail 2.4%
Capital Equipment 5.9% N/A 0.0%
Utility 4.9% N/A 0.0%
* 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 12/31/99. 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 Mid-Growth
investment style.
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]
Historical Fund Return
Small/Mid-Cap Russell 2500
Date Value Fund Value Index
7/31/99 10,000
8/31/99 10,001 10,000
9/30/99 9,560 9,685
10/31/99 9,443 9,695
11/30/99 9,942 9,748
12/31/99 10,508 10,081
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Arrow Electronics, Inc. 3.0% N/A
3Com Corp. 2.4% N/A
Abercrombie & Fitch Co. 2.3% N/A
Tech Data Corp. 2.3% N/A
Hercules, Inc. 2.2% N/A
IMC Global, Inc. 2.2% N/A
Ziff-Davis, Inc. - ZD 2.1% N/A
Sterling Software, Inc. 2.1% N/A
Quest Diagnostics, Inc. 2.1% N/A
Everest Reinsurance Holdings 2.0% N/A
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Small/Mid-Cap Russell 2500
Value Fund Value Index
---------- -----------
Since Inception (8/31/99) 5.08% 0.81%
Top Ten Sectors (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
Investments Investments
Technology 24.0% Consumer Cyclical 8.8%
Retail 17.9% Financial 8.5%
Capital Equipment 12.4% Health Care 4.4%
Energy 12.4% Transportation 1.1%
Basic Material 10.0% Consumer Staple 0.7%
*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. 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.
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]
Historical Fund Return
Date Small-Cap Value Benchmark Small-Cap Value Fund
04/01/96 10,000 10,000
05/31/96 10,394 10,232
06/28/96 9,967 10,126
07/31/96 9,097 9,630
08/30/96 9,625 10,161
09/30/96 10,001 10,450
10/31/96 9,847 10,340
11/29/96 10,253 10,678
12/31/96 10,521 11,033
01/31/97 10,732 11,115
02/28/97 10,471 10,927
03/31/97 9,977 10,594
04/30/97 10,005 10,831
05/30/97 11,118 11,818
06/30/97 11,595 12,513
07/31/97 12,134 13,256
08/29/97 12,412 13,389
09/30/97 13,320 14,242
10/31/97 12,735 13,761
11/28/97 12,653 13,863
12/31/97 12,874 13,855
01/01/98 12,671 13,514
02/27/98 13,608 14,524
03/31/98 14,169 15,130
04/30/98 14,247 15,214
05/29/98 13,480 14,450
06/30/98 13,508 14,450
07/31/98 12,415 13,262
08/31/98 10,004 10,895
09/30/98 10,787 11,407
10/30/98 11,227 11,727
11/30/98 11,815 12,313
12/31/98 12,546 13,029
01/29/99 12,713 12,708
02/26/99 11,683 11,869
03/31/99 11,866 11,819
04/30/99 12,929 12,612
05/28/99 13,118 12,790
06/30/99 13,711 13,622
07/31/99 13,335 13,436
08/31/99 12,841 12,841
09/30/99 12,844 12,613
10/31/99 12,946 12,358
11/30/99 13,014 12,260
12/31/99 13,413 12,583
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Corn Products International, Inc. 1.3% 0.4%
Imperial Bancorp 1.1% 1.0%
Dollar Thrifty Automotive Group, Inc. 1.0% N/A
Silicon Valley Bancshares 1.0% 0.4%
Standard Pacific Corp. 1.0% N/A
Universal Corp. 1.0% 0.7%
Selective Insurance Group 1.0% N/A
Washington Federal, Inc. 1.0% N/A
Lam Research Corp. 1.0% 0.4%
Equitable Resources, Inc. 0.9% N/A
Average Annual Total Returns*
- -----------------------------------------------------------------------------
Small-Cap Small-Cap Value MorningStar
Value Fund Benchmark (1) Peer Group+
------------------- ----------------------- -------------
1 Year -3.43% 1.23% 6.80%
3 Years 4.48 7.10 7.48
Since Inception 6.46 8.34 N/A
(5/1/96)
Top Ten Sectors (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of %of
investments investments
Financial 31.7% Energy 7.6%
Capital Equipment 14.3% Retail 5.5%
Consumer Cyclical 10.6% Utility 4.3%
Basic Material 8.9% Consumer Staple 3.7%
Technology 8.1% Health Care 2.7%
(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 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 the 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 Small-Value investment style.
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]
Historical Fund Return
Date Russell 2000 Growth Index Small-Cap Growth Fund
04/30/96 10,000 10,000
05/31/96 10,513 10,599
06/28/96 9,830 10,294
07/31/96 8,630 9,480
08/30/96 9,269 10,298
09/30/96 9,746 11,151
10/31/96 9,325 10,170
11/29/96 9,585 9,976
12/31/96 9,772 9,950
01/31/97 10,016 10,302
02/28/97 9,411 9,638
03/31/97 8,747 8,962
04/30/97 8,646 8,763
05/30/97 9,945 9,781
06/30/97 10,282 10,514
07/31/97 10,809 11,205
08/29/97 11,133 11,571
09/30/97 12,022 12,817
10/31/97 11,300 11,834
11/28/97 11,031 11,387
12/31/97 11,037 11,370
01/01/98 10,889 11,170
02/27/98 11,851 12,062
03/31/98 12,348 12,788
04/30/98 12,424 12,730
05/29/98 11,521 11,856
06/30/98 11,639 12,366
07/31/98 10,667 11,537
08/31/98 8,205 8,966
09/30/98 9,037 9,701
10/30/98 9,508 10,230
11/30/98 10,245 11,424
12/31/98 11,173 13,017
01/29/99 11,675 13,456
02/26/99 10,607 12,384
03/31/99 10,985 13,341
04/30/99 11,955 13,873
05/28/99 11,974 13,626
06/30/99 12,605 14,903
07/31/99 12,215 15,022
08/31/99 11,758 14,920
09/30/99 11,985 15,236
10/31/99 12,292 16,337
11/30/99 13,591 18,479
12/31/99 15,987 22,179
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Data Return Corp. 1.2% N/A
Cognizant Technology Solutions Corp. 1.2% 0.8%
Pegasus Communications Corp. 1.1% 0.9%
Aspen Technologies, Inc. 1.1% N/A
BindView Development Corp. 1.0% 0.6%
Be Free, Inc. 1.0% N/A
Broadbase Software, Inc. 1.0% N/A
Forrester Research, Inc. 1.0% 0.7%
Micromuse, Inc. 1.0% 0.9%
Getty Images, Inc. 0.9% 0.6%
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Small-Cap Russell 2000 MorningStar
Growth Fund Growth Index Peer Group+
--------------------- ---------------------- -------------
1 Year 70.38% 43.09% 65.88%
3 Years 30.63 17.83 24.37
Since Inception 24.25 13.65 N/A
(5/1/96)
Top Ten Sectors (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
investments investments
Technology 51.8% Capital Equipment 5.2%
Consumer Cyclical 15.4% Energy 2.7%
Retail 7.4% Transportation 2.3%
Financial 6.7% Basic Material 1.6%
Health Care 6.1% Consumer Staple 0.9%
* 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 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 os 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 Small-Growth investment style.
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]
Historical Fund Return
Date Global Equity Fund MSCI World Index
04/01/98 10,000 10,000
05/29/98 9,834 9,876
06/30/98 9,994 10,112
07/31/98 9,829 10,097
08/31/98 8,574 8,752
09/30/98 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
01/29/99 10,013 11,037
02/26/99 9,525 10,745
03/31/99 9,895 11,194
04/30/99 10,514 11,637
05/28/99 10,270 11,213
06/30/99 10,821 11,738
07/31/99 10,894 11,704
08/31/99 10,830 11,685
09/30/99 10,652 11,573
10/31/99 10,701 12,176
11/30/99 11,175 12,521
12/31/99 12,350 13,536
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Daiwa Securities Co., Ltd. 2.3% 1.2%
Sony Corp. 2.2% 1.5%
Oracle Corp. 2.1% 1.8%
Sharp Corp. 2.1% 1.2%
Immunex Corp. 2.0% 1.6%
Sun Microsystems, Inc. 1.8% 1.3%
AT&T Corp.-Liberty Media Group 1.7% 1.4%
Canal Plus 1.7% 1.4%
Cable & Wireless Optus, Ltd. 1.7% 1.4%
BOC Group plc 1.5% 1.7%
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Global Equity MSCI MorningStar
Fund World Index Peer Group+
--------------------- ---------------------- -------------
1 Year 24.19% 25.34% 41.74%
Since Inception 13.48 19.92 N/A
(5/1/98)
Top Ten Countries (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of %of
investments investments
United States 32.0% France 4.6%
Japan 20.1% Switzerland 3.9%
United Kingdom 15.7% Canada 3.6%
Germany 7.8% Netherlands 1.6%
Australia 4.7% South Africa 1.6%
* 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. International investing
entails special risks as outlined in the prospectus. The performance of
the fund on this page is reported net of the 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 World Stock investment style.
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]
Historical Fund Return
International International International International
Equity Equity Equity Equity
Index Index Index Index
Date Fund Benchmark(1) Date Fund Benchmark(1)
12/29/89 10,000 10,000 01/31/95 13,079 10,524
01/31/90 9,586 9,630 02/28/95 13,302 10,497
02/28/90 9,426 8,960 03/31/95 13,785 11,154
03/30/90 9,472 8,028 04/28/95 14,200 11,577
04/30/90 9,383 7,967 05/31/95 14,491 11,442
05/31/90 10,127 8,878 06/30/95 14,352 11,244
06/29/90 10,279 8,802 07/31/95 15,149 11,947
07/31/90 10,431 8,928 08/31/95 14,718 11,494
08/31/90 9,484 8,064 09/29/95 14,927 11,722
09/28/90 8,872 6,942 10/31/95 14,668 11,410
10/31/90 9,093 8,026 11/30/95 14,736 11,730
11/30/90 9,158 7,555 12/29/95 14,964 12,206
12/31/90 9,206 7,681 01/31/96 15,199 12,259
01/31/91 9,346 7,931 02/29/96 15,372 12,303
02/28/91 9,896 8,784 03/29/96 15,518 12,568
03/28/91 10,023 8,258 04/30/96 16,093 12,936
04/30/91 10,066 8,342 05/31/96 15,930 12,701
05/31/91 10,299 8,431 06/28/96 15,965 12,776
06/28/91 9,760 7,814 07/31/96 15,288 12,406
07/31/91 10,244 8,200 08/30/96 15,408 12,436
08/30/91 10,347 8,036 09/30/96 15,696 12,769
09/30/91 10,428 8,491 10/31/96 15,599 12,642
10/31/91 10,607 8,613 11/29/96 16,297 13,148
11/27/91 10,367 8,214 12/31/96 16,338 12,982
12/31/91 11,358 8,640 01/31/97 16,056 12,531
01/31/92 11,330 8,458 02/28/97 16,116 12,739
02/28/92 11,309 8,158 03/31/97 15,816 12,788
03/31/92 10,791 7,622 04/30/97 15,929 12,859
04/30/92 10,761 7,660 05/30/97 17,271 13,699
05/29/92 11,065 8,175 06/30/97 18,165 14,458
06/30/92 10,855 7,790 07/31/97 18,737 14,694
07/31/92 10,793 7,593 08/29/97 16,695 13,600
08/31/92 10,674 8,072 09/30/97 17,902 14,365
09/30/92 10,636 7,915 10/31/97 15,476 13,264
10/30/92 10,579 7,502 11/28/97 15,471 13,132
11/30/92 11,022 7,575 12/31/97 15,517 13,249
12/31/92 11,170 7,616 01/31/98 15,528 13,858
01/29/93 11,238 7,618 02/27/98 16,720 14,751
02/26/93 11,181 7,850 03/31/98 17,398 15,208
03/31/93 11,552 8,537 04/30/98 17,864 15,332
04/30/93 11,624 9,349 05/29/98 17,970 15,553
05/28/93 12,214 9,549 06/30/98 18,188 15,703
06/30/93 12,107 9,402 07/31/98 18,336 15,912
07/30/93 12,320 9,733 08/31/98 16,004 13,819
08/31/93 13,009 10,261 09/30/98 15,506 13,437
09/30/93 13,180 10,032 10/30/98 17,184 14,936
10/29/93 14,029 10,344 11/30/98 18,017 15,715
11/30/93 13,505 9,442 12/31/98 18,748 16,351
12/31/93 14,778 10,126 01/29/99 18,789 16,372
01/31/94 14,880 10,984 02/26/99 18,153 15,862
02/28/94 14,706 10,956 03/31/99 19,105 16,701
03/31/94 13,939 10,486 04/30/99 19,836 17,375
04/29/94 14,202 10,933 05/28/99 18,875 16,469
05/31/94 14,368 10,873 06/30/99 19,848 17,301
06/30/94 13,998 11,029 07/30/99 20,314 17,731
07/29/94 14,319 11,138 08/31/99 20,500 17,855
08/31/94 14,982 11,404 09/30/99 20,644 18,074
09/30/94 14,671 11,047 10/29/99 21,336 18,676
10/31/94 14,965 11,417 11/30/99 22,277 19,449
11/30/94 13,985 10,871 12/31/99 24,535 21,400
12/30/94 13,853 10,942
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Deutsche Telekom AG 3.1% 1.7%
Nippon Telegraph & Telephone Corp. 2.5% 2.9%
Toyota Motor Corp. 2.1% 2.4%
Telecom Italia Mobile SpA 1.5% 1.2%
Sony Corp. 1.4% 0.7%
Mannesmann AG 1.4% 0.3%
Softbank Corp. 1.2% N/A
Allianz AG 1.2% 1.3%
France Telecom 1.2% 0.9%
Telecom Italia SpA 1.2% 1.1%
Average Annual Total Returns*
- ------------------------------------------------------------------------------
International International Equity MorningStar
Equity Index Fund Index Benchmark(1) Peer Group+
----------------- ------------------ -----------
1 Year 30.87% 30.87% 44.90%
3 Years 14.51 18.13 18.57
5 Years 12.11 14.36 16.62
10 Years 9.39 7.90 11.35
Top Ten Countries (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
investments investments
Japan 32.1% Spain 3.3%
Germany 14.6% Netherlands 2.8%
France 9.8% Australia 1.8%
United Kingdom 7.6% Sweden 1.6%
Italy 7.4% Switzerland 1.5%
(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 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. There are
special risks associated with international investing, including currency
fluctuations, political and economic instability, foreign taxation and
different accounting standards, as outlined in the current prospectus.
+ Source: MorningStar, Inc. Data as of 12/31/99. 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.
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]
Historical Fund Return
Date International Equity Fund MSCI EAFE Index
08/31/99 10,000 10,000
09/30/99 9,936 10,103
10/31/99 10,308 10,484
11/30/99 11,104 10,850
12/31/99 12,107 11,826
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Nokia Oyj 2.8% N/A
British Telecommunications plc 2.2% N/A
Telefonica SA 2.0% N/A
Mannesmann AG 1.9% N/A
Total SA 1.8% N/A
VNU NV 1.8% N/A
Rohm Co., Ltd. 1.7% N/A
Nippon Telegraph & Telephone Corp. 1.7% N/A
Glaxo Wellcome plc 1.7% N/A
Vodafone Group plc 1.6% N/A
Average Annual Total Returns*
- ------------------------------------------------------------------------------
International MSCI EAFE
Equity Fund Index
------------- ---------
Since Inception (8/31/99) 21.49% 18.26%
Top Ten Countries (as of December 31, 1999)
- ------------------------------------------------------------------------------
- --
% of % of
investments investments
Japan 24.4% Spain 4.6%
United Kingdom 20.0% Sweden 4.2%
Netherlands 10.1% Switerland 4.0%
France 10.0% Australia 3.1%
Germany 8.3% Finland 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 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
fluctations, political and economic instability, foreign taxation and
different accounting standards, as outlined in the current prospectus.
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]
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%
Nipon 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, foreigh 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.
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]
Historical Fund Return
Emerging Markets MSCI Emerging
Date Equity Fund Markets Free Index
4/30/98 10,000 10,000
5/29/98 8,688 8,630
6/30/98 7,960 7,724
7/31/98 8,533 7,969
8/31/98 5,845 5,665
9/30/98 6,556 6,024
10/30/98 7,081 6,659
11/30/98 7,668 7,213
12/31/98 7,113 7,108
1/29/99 6,934 6,993
2/26/99 6,732 7,061
3/31/99 7,578 7,992
4/30/99 8,290 8,981
5/28/99 7,990 8,929
6/30/99 9,228 9,942
7/31/99 8,932 9,672
8/31/99 8,752 9,760
9/30/99 8,575 9,430
10/31/99 9,056 9,630
11/30/99 10,560 10,494
12/31/99 12,901 11,828
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months age
investments % of investments
Samsung Electronics 7.2% 3.1%
SK Telecom Co., Ltd. 4.9% N/A
Telefonos de Mexico SA 4.0% 4.1%
Taiwan Semiconductor
Manufacturing Co., Ltd. 2.9% 2.2%
Yapi ve Kredi Bankasi A.S. 2.9% 1.0%
Acer, Inc. 2.5% N/A
Infosys Technologies, Ltd. 2.5% N/A
Grupo Televisa SA 2.2% N/A
Korea Telecom Corp. 2.0% 3.4%
Gilat Satellite Networks, Ltd. 2.0% N/A
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Emerging Markets MSCI Emerging MorningStar
Equity Fund(1) Markets Free Index Peer Group+
1 Year 81.37% 66.41% 74.89%
Since Inception 16.49 10.60 N/A
(5/1/98)
Top Ten Countries (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
investments investments
South Korea 21.1% Turkey 8.3%
Taiwan 11.9% South Africa 5.6%
Mexico 11.0% Israel 5.2%
India 9.0% United States 2.9%
Brazil 8.7% Soviet Union 2.5%
* 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. 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 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 Diversified Emerging Markets investment style.
(1) Returns reflect extra-ordinary capital contribution of $445,000 in June
1999.
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]
Historical Fund Return
DATE Money Market Fund DATE Money Market Fund
31-Dec-89 10,000 31-Jan-95 12,744
31-Jan-90 10,000 28-Feb-95 12,804
28-Feb-90 10,069 31-Mar-95 12,860
31-Mar-90 10,131 30-Apr-95 12,924
30-Apr-90 10,198 31-May-95 12,981
31-May-90 10,269 30-Jun-95 13,048
30-Jun-90 10,339 31-Jul-95 13,109
31-Jul-90 10,404 31-Aug-95 13,172
31-Aug-90 10,477 30-Sep-95 13,233
30-Sep-90 10,546 31-Oct-95 13,291
31-Oct-90 10,609 30-Nov-95 13,355
30-Nov-90 10,685 31-Dec-95 13,416
31-Dec-90 10,753 31-Jan-96 13,480
31-Jan-91 10,825 29-Feb-96 13,543
28-Feb-91 10,893 31-Mar-96 13,599
31-Mar-91 10,950 30-Apr-96 13,653
30-Apr-91 11,004 31-May-96 13,713
31-May-91 11,065 30-Jun-96 13,773
30-Jun-91 11,119 31-Jul-96 13,827
31-Jul-91 11,166 31-Aug-96 13,891
31-Aug-91 11,225 30-Sep-96 13,951
30-Sep-91 11,276 31-Oct-96 14,012
31-Oct-91 11,328 30-Nov-96 14,074
30-Nov-91 11,378 31-Dec-96 14,127
31-Dec-91 11,419 31-Jan-97 14,197
31-Jan-92 11,470 28-Feb-97 14,260
29-Feb-92 11,510 31-Mar-97 14,317
31-Mar-92 11,543 30-Apr-97 14,379
30-Apr-92 11,583 31-May-97 14,442
31-May-92 11,620 30-Jun-97 14,505
30-Jun-92 11,655 31-Jul-97 14,571
31-Jul-92 11,695 31-Aug-97 14,637
31-Aug-92 11,732 30-Sep-97 14,700
30-Sep-92 11,767 31-Oct-97 14,769
31-Oct-92 11,800 30-Nov-97 14,836
30-Nov-92 11,821 31-Dec-97 14,897
31-Dec-92 11,853 31-Jan-98 14,971
31-Jan-93 11,887 28-Feb-98 15,040
28-Feb-93 11,917 31-Mar-98 15,099
31-Mar-93 11,946 30-Apr-98 15,168
30-Apr-93 11,978 31-May-98 15,235
31-May-93 12,008 30-Jun-98 15,304
30-Jun-93 12,035 31-Jul-98 15,371
31-Jul-93 12,067 31-Aug-98 15,441
31-Aug-93 12,097 30-Sep-98 15,511
30-Sep-93 12,129 31-Oct-98 15,579
31-Oct-93 12,158 30-Nov-98 15,648
30-Nov-93 12,186 31-Dec-98 15,714
31-Dec-93 12,218 31-Jan-99 15,781
31-Jan-94 12,250 28-Feb-99 15,847
28-Feb-94 12,282 31-Mar-99 15,905
31-Mar-94 12,311 30-Apr-99 15,968
30-Apr-94 12,343 31-May-99 16,029
31-May-94 12,375 30-Jun-99 16,092
30-Jun-94 12,412 31-Jul-99 16,154
31-Jul-94 12,454 31-Aug-99 16,220
31-Aug-94 12,495 30-Sep-99 16,288
30-Sep-94 12,544 31-Oct-99 16,356
31-Oct-94 12,591 30-Nov-99 16,428
30-Nov-94 12,635 17-Dec-99 16,499
31-Dec-94 12,686 22-Dec-99 16,499
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
Clipper Receivables Corp. 4.9% N/A
National Bank of Canada 4.6% 5.6%
Sigma Finance, Inc. 4.5% 3.6%
Windmill Funding Corp. 4.5% 0.3%
Sheffield Receivables Corp. 4.4% 1.0%
Goldman Sachs Group, Inc. 4.4% 2.3%
Eagle Funding Capital Corp. 3.9% N/A
Lehman Brothers Holdings, Inc. 3.8% 3.0%
Centric Capital Corp. 3.4% 2.5%
General Electric Capital Corp. 3.3% 1.6%
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Money Market
Fund
------------
1 Year 5.05%
3 Years 5.30
5 Years 5.40
10 Years 5.18
Top Ten Sectors (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of % of
investments investments
Financial 78.3% Basic Material 1.5%
Consumer Cyclical 7.0% N/A 0.0%
Capital Equipment 5.0% N/A 0.0%
Utility 4.9% N/A 0.0%
Technology 3.4% N/A 0.0%
The Money Market Portfolio is neither insured nor guaranteed by the U.S.
Government and there is no guarantee the fund will be able to maintain a
stable net asset value of $10.00/share.
* Total returns are for the period ended December 31, 1999. Returns represent
past performance, assume reinvestment of all distributions and are not
indicative of future performance. The performance of the fund on this
page is reported net of Trust level charges (i.e. investment management
fees and operating expenses). It does not reflect expense and charges of
the applicable separate accounts and variable products, all of which vary
to a considerable extent and are described in your product prospectus.
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]
Historical Fund Return
Lehman Brothers Gov't./Corp.
Date Bond Index Fund Bond Index
04/30/98 10,000 10,000
05/31/98 10,102 10,000
06/30/98 10,211 10,102
07/31/98 10,220 10,211
08/31/98 10,461 10,220
09/30/98 10,757 10,461
10/31/98 10,689 10,757
11/30/98 10,703 10,689
12/31/98 10,720 10,703
01/31/99 10,795 10,720
02/28/99 10,521 10,795
03/31/99 10,584 10,521
04/30/99 10,609 10,584
05/31/99 10,485 10,609
06/30/99 10,450 10,485
07/31/99 10,420 10,456
08/31/99 10,414 10,447
09/30/99 10,497 10,541
10/31/99 10,514 10,569
11/30/99 10,513 10,562
12/31/99 10,445 10,498
Top Ten Holdings (as of December 31, 1999)
- ------------------------------------------------------------------------------
% of six months ago
investments % of investments
U.S. Treasury 53.4% 52.5%
Federal Home Loan Mortgage Corp. 7.1% 6.8%
Federal National Mortgage Assoc. 5.6% 5.5%
General Motors Acceptance Corp. 1.0% 1.2%
KFW International Finance 0.8% 1.0%
ICI Wilmington 0.8% 1.0%
Federal Home Loan Bank 0.8% 1.0%
Morgan Stanley, Dean Witter, Discover & Co. 0.8% 1.0%
First Union Corp. 0.6% 0.8%
AT&T Corp. 0.6% 0.2%
Average Annual Total Returns*
- ------------------------------------------------------------------------------
Bond Index L/B Govt./Corp. MorningStar
Fund Bond Index Peer Group+
---------- --------------- -----------
1 Year -2.57% -2.15% -1.49%
Since Inception (5/1/98) 2.54 2.96 N/A
Fund Composition (as of December 31, 1999)
- ------------------------------------------------------------------------------
Credit Quality Duration
- -------------- --------
Government Bonds 66.88% Less than 1 Year 4.46%
AAA 2.07% 1-3 Years 21.30%
AA 6.15% 3-5 Years 20.72%
A 14.34% 5-10 Years 25.97%
BBB 9.44% Greater than 10 Years 27.55%
Below BBB 0.0%
NR/NA 1.12%
* 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 are 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-acounts within the Morningstar variable universe having a General Bond
Intermediate High Quality investment style.
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<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
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]
