<PAGE> 1
JOHN HANCOCK FUNDS
- --------------------------------------------------------------------------------
UTILITIES
FUND
SEMI -- ANNUAL REPORT
November 30, 1995
<PAGE> 2
TRUSTEES
Edward J. Boudreau, Jr.
Chairman
Dennis S. Aronowitz*
Richard P. Chapman, Jr.*
William J. Cosgrove*
Gail D. Fosler*
Bayard Henry*
Richard S. Scipione
Edward J. Spellman*
*Members of the Audit Committee
OFFICERS
Edward J. Boudreau, Jr.
Chairman and Chief Executive Officer
Robert G. Freedman
Vice Chairman and Chief Investment Officer
Anne C. Hodsdon
President
Thomas H. Drohan
Senior Vice President and Secretary
James B. Little
Senior Vice President and Chief Financial Officer
Susan S. Newton
Vice President, Assistant Secretary and Compliance Officer
James J. Stokowski
Vice President and Treasurer
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02110
TRANSFER AGENT
John Hancock Investor Services Corporation
P.O. Box 9116
Boston, Massachusetts 02205-9116
INVESTMENT ADVISER
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
PRINCIPAL DISTRIBUTOR
John Hancock Funds, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, Massachusetts 02109
CHAIRMAN'S MESSAGE
DEAR FELLOW SHAREHOLDERS:
[A 1 1/4" x 1" photo of Edward J. Boudreau, Jr., Chairman and Chief Executive
Officer, flush right, next to second paragraph.]
Investors around the world have been watching Wall Street in awe for the better
part of 1995. Through November, the Standard & Poor's 500-Stock Index, a
widely-used barometer of stock performance, had grown by 32%. Investors who
stayed in the market after a disappointing 1994 have been rewarded.
On another street, Pennsylvania Avenue, one of the hot topics many people are
watching is Medicare reform. While there's no clear-cut solution on the horizon,
today's Medicare debate should serve as another wake-up call to all Americans
about the need to have a financial plan and to save for retirement. Whether or
not the government changes the way health-care benefits are allotted to senior
citizens, the message is clear: your future security and well-being lies in your
own hands -- not Uncle Sam's.
We know you've heard it a hundred times. Pick up almost any financial
periodical today, and you'll see cover stories on retirement. Many of them will
perhaps scare you or make you think that the task of saving for retirement is
just too daunting. But take heart. We don't believe that and neither do many
financial experts.
Yet retirement planning is not to be taken lightly. To live the way you want
to -- the way you deserve to after all those years of hard work -- you need to
plan and save now, on a regular basis, no matter what your other costs, no
matter how small the amount, no matter what your current age. It may be easier
if you start earlier, but it's never too late.
Building a secure nest egg is indeed doable. Talk to your financial adviser
about establishing your retirement planning roadmap, if you haven't already. And
educate yourself by reading some of the many articles about how to save for
retirement. Take control of your future by saving today. That way, when it comes
time for retirement, you shouldn't have to think about any street but Easy
Street.
Sincerely,
/s/Edward J. Boudreau, Jr.
- --------------------------
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER
2
<PAGE> 3
BY ANDREW F. ST. PIERRE, SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER
JOHN HANCOCK
UTILITIES FUND
Falling interest rates and improved regulatory outlook boost electric utilities
Six months ago, we reported on the sharp rally in electric utilities that began
during the final months of 1994. That rally has continued with only minor
interruptions throughout most of 1995, attracting investors to electric utility
stocks in droves and propelling utility indexes to historic highs. For reasons
we'll explain below, we have doubts about the fundamental strength of many
electric utilities. Those doubts have kept us from participating in the rally as
fully as some of our competitors. We still have confidence in the strength of
our analysis, and believe our strategy will prove wise in the long run,. In the
short term, however, we've had to accept a performance that lagged the Fund's
peer group. For the six months ended November 30, 1995, John Hancock Utilities
Fund had total returns for its Class A and Class B shares of 7.51% and 7.16%,
respectively, at net asset value. During the same period, the average utility
fund had a total return of 10.29%, according to Lipper Analytical Services.(1)
[A 2 1/2" x 2 3/4" photo of Andrew F. St. Pierre, bottom center. Caption reads:
"Andrew F. St. Pierre, Portfolio Manager."]
BEHIND THE RALLY IN ELECTRIC UTILITIES
During 1995, electric utilities performed more like highly speculative
investments. The Dow Jones Utilities Average, for example, was up nearly 30%
year-to-date through the end of November. Among the biggest justifications for
the rally was the nearly ideal investment climate. Slow growth, benign inflation
and declining interest rates have formed an attractive backdrop to financial
markets all year, and utilities, like bonds, have been among the major
beneficiaries.
[CAPTION]
"During 1995, electric utilities performed more like highly speculative
investments."
3
<PAGE> 4
John Hancock Funds - Utilities Fund
[A pie chart with the heading "Portfolio Diversification" at top of left hand
column. The chart is divided into four sections. Going from top left to right:
Electric Utilities 72%, Short-Term Investments & Other 6%, Natural Gas 14%,
Telephone/telecommunications 8%. A footnote states: "As a percentage of net
assets on November 30, 1995."]
In July, the Federal Reserve shaved one-quarter percentage point off the
interest rate banks charge each other for overnight loans, known as the federal
funds rate. Rates have continued falling since then with few interruptions,
driven ever lower by market participants anticipating the next rate cut by the
Fed.
There were also technical justifications for the rally. One was the warmer
than usual summer weather, which increased demand and therefore earnings.
Another was the decision by California regulators, announced in May, to extend
the timetable for introducing retail competition among electricity providers.
Many utility investors who had abandoned the sector a year before, when
competition seemed imminent, saw this as their opportunity to get back in.
Finally, as the broader stock market has surged, many investors, fearful of a
correction, have redeployed a portion of their assets into securities perceived
to be defensive, including utility stocks.
WHY WE REMAIN CAUTIOUS
At the end of November, electric utilities totaled about 72% of the Fund's
assets, up from 54% six months ago. That's a significant stake, and the Fund
profited as a result. Even so, it's a lighter proportion than the three
most-commonly referenced utility indexes and the average utility fund.
Additionally, nearly half of our electric utility holdings were preferred
stocks, not common stocks. With their higher-than-average dividends, preferreds
helped boost the Fund's yield but failed to keep pace with utility common stocks
during the rally. So why have we held back?
One of the few certainties facing the electric utilities industry as it looks
toward the coming era of retail competition is margin compression, or lower
earnings. Some utilities may have managed to postpone the inevitable by means of
layoffs, internal cost-cutting, and the shedding of peripheral enterprises, but
there are limits to the effectiveness of those tactics. Competition is coming,
and in all likelihood it's the shareholders, not the rate-payers, who will bear
the brunt of the cost. That could well mean not only lower earnings, but also
lower dividends.
All year, however, the stocks kept climbing, lifting traditional measures of
value -- such as price-to-earnings ratios -- to what we believe are
unreasonable levels. Still, the Fund made money on a number of these stocks.
These included Pacific Gas and Electric, which was up 19% year-to-date and
Unicom, up 45%. Our favorite
[Table entitled "Scorecard" at bottom left hand column. The header for the left
column is "Investment"' the header for the right column is "Recent
performance...and what's behind the numbers." The first listing is "CMS Energy"
followed by an up arrow and the phrase "Above-average earnings potential". The
second listing is "Natural Fuel Gas" followed by an up arrow and the phrase
"Improving outlook for gas prices". The third listing is "Niagara Mohawk Power"
followed by a down arrow and the phrase "Regulatory dispute". Footnote below
reads: "See '"Schedule of Investments." Investment holdings are subject to
change."]
[CAPTION]
"One of the few certainties facing the electric utilities industry... is margin
compression, or lower earnings."
4
<PAGE> 5
John Hancock Funds - Utilities Fund
[Bar chart with heading "Fund Performance" at top of left hand column. Under the
heading is the footnote "For the six months ended November 30, 1995." The chart
is scaled in increments of 3% from top to bottom with 12% at the top and 0% at
the bottom. Within the chart, there are three solid bars. The first represents
the 7.51% total return for John Hancock Utilities Fund, Class A. The second
represents the 7.16% total return for John Hancock Utilities Fund, Class B.
The third represents the 10.29% total return for the average utility fund.
Footnote below reads: "Total returns for John Hancock Utilities Fund are at
net asset value with all distributions reinvested. The average general utility
fund is tracked by Lipper Analytical Services. (1) See following page for
historical performance information.]
was CMS Energy, a Michigan electric utility with a natural gas division that
produces almost half its earnings. The cost of owning CMS is a below-average
yield -- about 3.5%. But that's offset long-term by an above-average potential
for earnings and dividend growth over the next five years.
OTHER UTILITIES
Oil and gas stocks totaled about 14% of the Fund's assets at the end of
November, and together they rose about 12% during the past six months. Most are
natural-gas stocks, which have struggled lately in the face of a worldwide glut.
Fortunately, production has eased, and indications are that by next year the
supply overhang may begin to fall off. Our favorite gas stock is still Enron, a
production and pipeline company that has done reasonably well despite the flat
global market for its product. The Fund also had a small stake -- less than 5%
- -- in telephone utilities, including Sprint, a long-distance service provider,
and two regional Bell operating companies, Bell Atlantic and US West.
OUTLOOK
Some of the most promising stocks seem to be in the energy industry,
particularly the large international oil companies. They're well-placed to
profit from an expanding global economy and higher inflation, and could also
become attractive to investors seeking stability in the midst of growing
uncertainty in the stock market. So we'll likely maintain our underweighting in
electric utilities, trimming both common stocks and preferreds in the months
ahead, and shift some of the Fund's assets to those oil companies. Our call on
the electric utility industry cost the Fund money in 1995, we recognize that.
But we believe we were early, not wrong, and we see no reason to change course
now. Until the industry fundamentals improve, we think it wise to remain
defensive.
(1) Figures from Lipper Analytical Services include reinvested dividends and
do not take into account sales charges. Actual load-adjusted performance
is lower.
This commentary reflects the views of the portfolio manager through the
end of the Fund's period discussed in this report. Of course, the manager's
views are subject to change as market and other conditions warrant.
[CAPTION]
"...we'll likely maintain our underweighting in electric utilities."
5
<PAGE> 6
A LOOK AT PERFORMANCE
The tables on the right show the cumulative total returns and the average annual
total returns for the John Hancock Utilities Fund. Total return is a performance
measure that equals the sum of all dividends and capital gains, assuming
reinvestment of these distributions and the change in the price of the Fund's
shares, expressed as a percentage of the Fund's average net assets. Performance
figures include the maximum applicable sales charge of 5.00% for Class A shares.
The effect of the maximum contingent deferred sales charge for Class B shares
(maximum 5% and declining to 0% over six years) is included in Class B
performance. Remember that all figures represent past performance and are no
guarantee of how the Fund will perform in the future. Also, keep in mind that
the total return and share price of the Fund's investments will fluctuate. As a
result, your Fund's shares may be worth more or less than their original cost,
depending on when you sell them. Please see the prospectus for risks associated
with industry segment investing.
Note: Participant-directed defined-contribution plans with at least 100 eligible
employees at inception of the Fund account may purchase Class A shares without
an initial sales charge as of March 15, 1995. If those shares are redeemed,
however, during the year following the calendar year end during which they were
purchased, a contingent deferred sales charge will be assessed.
CUMULATIVE TOTAL RETURNS
FOR THE PERIOD ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
ONE LIFE OF
YEAR FUND(1)
---- -------
<S> <C> <C>
John Hancock Utilities Fund: Class A 9.18% 3.88%
John Hancock Utilities Fund: Class B 9.10% 4.21%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
ONE LIFE OF
YEAR FUND(1)
---- -------
<S> <C> <C>
John Hancock Utilities Fund: Class A(2) 9.18% 2.32%
John Hancock Utilities Fund: Class B(2) 9.10% 2.51%
</TABLE>
NOTES TO PERFORMANCE
(1) Both Class A and Class B shares started on February 1, 1994.
(2) Without the limitation of expenses, the average annualized total returns for
the one-year period and since inception would have been 8.52% and (0.37%)
for Class A shares and 8.44% and (0.18%) for Class B shares.
6
<PAGE> 7
WHAT HAPPENED TO A $10,000 INVESTMENT...
The charts on the right show how much a $10,000 investment in John Hancock
Utilities Fund would be worth on November 30, 1995, assuming you had invested on
the day each class of shares started and have reinvested all distributions. For
comparison, we've shown the same $10,000 investment in the Dow Jones Utilities
Average -- an unmanaged index that measures the performance of the utility
industry in the United States. It consists of 15 actively traded stocks
representing a cross section of corporations involved in various phases of the
utility industry.
7
<PAGE> 8
Description
for pg. 7
Utilities Fund
Class A shares
Line chart with the heading Utilities Fund: Class A, representing the growth of
a hypothetical $10,000 investment over the life of the fund. Within the chart
are three lines.
The first line represents the value of the hypothetical $10,000 investment made
in the Utilities Fund on February 1, 1994, before sales charge, and is equal to
$11,189 as of November 30, 1995. The second line represents the Utilities Fund
after sales charge and is equal to $10,627 as of November 30, 1995. The third
line represents the value of the Dow Jones Utilities Average and is equal to
$9,548 as of November 30, 1995.
Utilities Fund
Class B shares
Line chart with the heading Utilities Fund: Class B, representing the growth of
a hypothetical $10,000 investment over the life of the fund. Within the chart
are three lines.
The first line represents the value of the hypothetical $10,000 investment made
in the Utilities Fund on February 1, 1994, before contingent deferred sales
charge, and is equal to $11,057 as of November 30, 1995. The second line
represents the Utilities Fund after contingent deferred sales charge and is
equal to $10,657 as of November 30, 1995. The third line represents the value of
the Dow Jones Utilities Average and is equal to $9,548 as of November 30, 1995.
<PAGE> 9
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1995 (Unaudited)
- ---------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments at value - Note C:
Common stocks (cost - $46,851,989) ...................................... $51,103,074
Preferred stocks (cost - $15,609,238) ................................... 16,184,025
Bonds (cost - $2,000,000) ............................................... 2,051,560
Corporate savings account ............................................... 209,772
-----------
69,548,431
Receivable for shares sold ................................................... 58,536
Receivable for investments sold .............................................. 522,900
Dividends receivable ......................................................... 229,535
Interest receivable .......................................................... 50,319
Receivable from John Hancock Advisers, Inc. - Note B ......................... 6,662
Deferred organization expenses - Note A ...................................... 26,922
-----------
Total Assets .................................................. 70,443,305
-------------------------------------------------------------------------------
LIABILITIES:
Payable for shares repurchased ............................................... 33,479
Payable to John Hancock Advisers, Inc. and affiliates - Note B ............... 72,130
Accounts payable and accrued expenses ........................................ 33,465
-----------
Total Liabilities ............................................. 139,074
-------------------------------------------------------------------------------
NET ASSETS:
Capital paid-in .............................................................. 64,077,080
Accumulated net realized gain on investments and foreign currency
transactions ................................................................ 939,514
Net unrealized appreciation of investments and foreign currency transactions.. 4,875,380
Undistributed net investment income .......................................... 412,257
-----------
Net Assets .................................................... $70,304,231
===============================================================================
NET ASSET VALUE PER SHARE:
(Based on net asset values and shares of beneficial interest outstanding -
unlimited number of shares authorized with no par value)
Class A - $23,337,473 / 2,618,912 ............................................ $ 8.91
==============================================================================================
Class B - $46,966,758 / 5,289,942 ............................................ $ 8.88
==============================================================================================
MAXIMUM OFFERING PRICE PER SHARE *
Class A - ($8.91 x 105.26%) .................................................. $ 9.38
==============================================================================================
</TABLE>
* On single retail sales of less than $50,000. On sales of $50,000 or more and
on group sales the offering price is reduced.
THE STATEMENT OF ASSETS AND LIABILITIES IS THE FUND'S BALANCE SHEET AND SHOWS
THE VALUE OF WHAT THE FUND OWNS, IS DUE AND OWES ON NOVEMBER 30, 1995. YOU'LL
ALSO FIND THE NET ASSET VALUE AND THE MAXIMUM OFFERING PRICE PER SHARE AS OF
THAT DATE.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 10
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
<TABLE>
STATEMENT OF OPERATIONS
Six months ended November 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $17,132) ........................................ $ 1,459,314
Interest ....................................................................................... 377,556
-----------
1,836,870
-----------
EXPENSES:
Investment management fee - Note B ............................................................. 233,295
Distribution/service fee - Note B
Class A ................................................................................... 34,867
Class B ................................................................................... 217,057
Transfer agent fee - Note B .................................................................... 100,171
Registration and filing fees ................................................................... 23,819
Custodian fee .................................................................................. 22,581
Printing ....................................................................................... 13,389
Auditing fee ................................................................................... 10,000
Organization Expense - Note A .................................................................. 4,264
Trustees' fees ................................................................................. 2,729
Legal fees ..................................................................................... 1,866
Miscellaneous .................................................................................. 951
-----------
Total Expenses .................................................................. 664,989
Less Expenses Reimbursable by John Hancock Advisers, Inc. - Note B .............. (146,255)
-------------------------------------------------------------------------------------------------
Net Expenses .................................................................... 518,734
-------------------------------------------------------------------------------------------------
Net Investment Income ........................................................... 1,318,136
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments sold .......................................................... 939,498
Net realized gain on foreign currency transactions ............................................. 3,157
Change in net unrealized appreciation/depreciation of investments .............................. 2,434,423
Change in net unrealized appreciation/depreciation of foreign currency transactions ............ (6,068)
-----------
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions 3,371,010
-------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations ............................ $ 4,689,146
=================================================================================================
</TABLE>
THE STATEMENT OF OPERATIONS SUMMARIZES THE FUND'S INVESTMENT INCOME EARNED AND
EXPENSES INCURRED IN OPERATING THE FUND. IT ALSO SHOWS NET GAINS (LOSSES) FOR
THE PERIOD STATED.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 11
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
NOVEMBER 30, 1995 YEAR ENDED
(UNAUDITED) MAY 31, 1995
----------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income .................................................... $ 1,318,136 $ 1,639,725
Net realized gain on investments sold and foreign currency transactions .. 942,655 1,432
Change in net unrealized appreciation/depreciation of investments
and foreign currency transactions ...................................... 2,428,355 2,466,201
----------- -----------
Net Increase in Net Assets Resulting from Operations ................... 4,689,146 4,107,358
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income
Class A - ($0.1954 and $0.3401 per share, respectively) ................ (479,759) (493,188)
Class B - ($0.1658 and $0.2988 per share, respectively) ................ (823,258) (767,459)
----------- -----------
Total Distributions to Shareholders ........................................ (1,303,017) (1,260,647)
----------- -----------
FROM FUND SHARE TRANSACTIONS -- NET* ....................................... 9,345,410 53,500,247
----------- -----------
NET ASSETS:
Beginning of period ........................................................ 57,572,692 1,225,734
----------- -----------
End of period (including undistributed net investment income of $412,257
and $397,138, respectively) .............................................. $70,304,231 $57,572,692
=========== ===========
<FN>
* ANALYSIS OF FUND SHARE TRANSACTIONS:
</FN>
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
NOVEMBER 30, 1995 YEARENDED
(UNAUDITED) MAY 31, 1995
----------------------- ------------------------
Shares Amount Shares Amount
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
CLASS A
Shares sold..................................................... 2,729,684 $23,862,350 3,085,752 $24,890,175
Shares issued to shareholders in reinvestment
of distributions.............................................. 48,004 407,085 49,990 400,435
---------- ----------- --------- -----------
2,777,688 24,269,435 3,135,742 25,290,610
Less shares repurchased......................................... (2,427,422) (21,321,380) (961,612) (7,849,867)
---------- ----------- --------- -----------
Net increase.................................................... 350,266 $ 2,948,055 2,174,130 $17,440,743
========== =========== ========= ===========
CLASS B
Shares sold..................................................... 1,213,953 $10,365,650 4,745,699 $38,182,620
Shares issued to shareholders in reinvestment
of distributions.............................................. 77,597 656,817 79,202 633,888
---------- ----------- --------- -----------
1,291,550 11,022,467 4,824,901 38,816,508
Less shares repurchased......................................... (538,915) (4,625,112) (341,569) (2,757,004)
---------- ----------- --------- -----------
Net increase.................................................... 752,635 $ 6,397,355 4,483,332 $36,059,504
========== =========== ========= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 12
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the period indicated, investment returns, key ratios and
supplemental data are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED FEBRUARY 1, 1994
NOVEMBER 30, 1995 YEAR ENDED (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) MAY 31, 1995 TO MAY 31, 1994
----------- ------------ -----------------
<S> <C> <C> <C>
CLASS A
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period ........................ $ 8.48 $ 8.26 $ 8.50
------- ------- -------
Net Investment Income ....................................... 0.20 0.44(b) 0.12(b)
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions ......................... 0.43 0.12 (0.36)
------- ------- -------
Total from Investment Operations .......................... 0.63 0.56 (0.24)
------- ------- -------
Less Distributions:
Dividends from Net Investment Income ........................ (0.20) (0.34) --
------- ------- -------
Net Asset Value, End of Period .............................. $ 8.91 $ 8.48 $ 8.26
======= ======= =======
Total Investment Return at Net Asset Value (c) .............. 7.51%(d) 7.10% (2.82%)(d)
Total Adjusted Investment Return at Net Asset Value (c)(e) .. 7.07%(d) 6.44% (13.89%)(d)
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................... $23,337 $19,229 $ 781
Ratio of Expenses to Average Net Assets ..................... 1.06%* 1.04% 1.00%*
Ratio of Adjusted Expenses to Average Net Assets (a) ........ 1.50%* 1.70% 12.07%*
Ratio of Net Investment Income to Average Net Assets ........ 4.42%* 5.39% 4.53%*
Ratio of Adjusted Net Investment Income (Loss) to Average
Net Assets (a) ............................................ 3.98%* 4.73% (6.54%)*
Portfolio Turnover Rate ..................................... 47% 98% 6%
Fee Reduction Per Share ..................................... $ 0.02(b) $ 0.05(b) $ 0.27(b)
</TABLE>
THE FINANCIAL HIGHLIGHTS SUMMARIZE THE IMPACT OF THE FOLLOWING FACTORS ON A
SINGLE SHARE FOR THE PERIODS INDICATED: THE NET INVESTMENT INCOME, GAINS
(LOSSES), DISTRIBUTIONS, AND TOTAL INVESTMENT RETURN OF THE FUND. IT SHOWS HOW
THE FUND'S NET ASSET VALUE FOR A SHARE HAS CHANGED SINCE THE END OF THE PREVIOUS
PERIOD. ADDITIONALLY, IMPORTANT RELATIONSHIPS BETWEEN SOME ITEMS PRESENTED IN
THE FINANCIAL STATEMENTS ARE EXPRESSED IN RATIO FORM.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 13
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED FEBRUARY 1, 1994
NOVEMBER 30, 1995 YEAR ENDED (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) MAY 31, 1995 TO MAY 31, 1994
----------- ------------ ----------------------------
<S> <C> <C> <C>
CLASS B
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period ........................ $ 8.45 $ 8.25 $ 8.50
------- ------- -------
Net Investment Income ....................................... 0.16 0.38(b) 0.08(b)
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions ......................... 0.44 0.12 (0.33)
------- ------- -------
Total from Investment Operations .......................... 0.60 0.50 (0.25)
------- ------- -------
Less Distributions:
Dividends from Net Investment Income ........................ (0.17) (0.30) ----
------- ------- -------
Net Asset Value, End of Period .............................. $ 8.88 $ 8.45 $ 8.25
======= ======= =======
Total Investment Return at Net Asset Value (c) .............. 7.16%(d) 6.31% (2.94%)(d)
Total Adjusted Investment Return at Net Asset Value (c)(e) .. 6.72%(d) 5.65% (14.01%)(d)
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................... $46,967 $38,344 $ 445
Ratio of Expenses to Average Net Assets ..................... 1.81%* 1.71% 1.72%*
Ratio of Adjusted Expenses to Average Net Assets (a) ........ 2.25%* 2.37% 12.79%*
Ratio of Net Investment Income to Average Net Assets ........ 3.69%* 4.64% 4.20%*
Ratio of Adjusted Net Investment Income (Loss)
to Average Net Assets (a) ................................. 3.25%* 3.98% (6.87%)*
Portfolio Turnover Rate ..................................... 47% 98% 6%
Fee Reduction Per Share ..................................... $ 0.02(b) $ 0.05(b) $ 0.27(b)
<FN>
* On an annualized basis.
(a) On an unreimbursed basis.
(b) On average month end shares outstanding.
(c) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(d) Not annualized.
(e) An estimated total return calculation which takes into consideration fees and expenses
waived or borne by the Adviser during the periods shown.
</FN>
</TABLE>
See notes to financial statements.
12
<PAGE> 14
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
THE SCHEDULE OF INVESTMENTS IS A COMPLETE LIST OF ALL SECURITIES OWNED BY
UTILITIES FUND ON NOVEMBER 30, 1995. IT'S DIVIDED INTO FOUR MAIN
CATEGORIES:COMMON STOCKS, PREFERRED STOCKS, BONDS AND SHORT-TERM INVESTMENTS.
SHORT-TERM INVESTMENTS, WHICH REPRESENT THE FUND'S "CASH" POSITION, ARE LISTED
LAST.
<TABLE>
SCHEDULE OF INVESTMENTS
November 30, 1995 (Unaudited)
<CAPTION>
- --------------------------------------------------------------------------------
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
<S> <C> <C>
COMMON STOCKS
BROADCASTING (1.66%)
US West Media Group ........................ 22,000* $ 396,000
Viacom, Inc. (Class A)** ................... 16,000* 770,000
-----------
1,166,000
-----------
DIVERSIFIED OPERATIONS (0.55%)
Tenneco, Inc. .............................. 8,000 384,000
-----------
OIL & GAS (5.77%)
Enron Corp. ................................ 30,000 1,125,000
Global Marine, Inc.** ...................... 66,000 445,500
Occidental Petroleum Corp. ................. 70,000 1,548,750
Panhandle Eastern Corp. .................... 13,500 383,062
Sonat, Inc. ................................ 17,250 556,313
-----------
4,058,625
===========
POLLUTION CONTROL (1.53%)
Memtec Ltd., American Depositary
Receipt, ("ADR"), (Australia) ............ 60,000* 1,072,500
-----------
PUBLISHING (0.95%)
News Corporation Ltd., ADR, (Australia) .... 32,000* 672,000
-----------
UTILITIES (62.23%)
American Electric Power Co. ................ 22,000* 827,750
Baltimore Gas & Electric Co. ............... 21,000 559,125
Bell Atlantic Corp. ........................ 14,750 929,250
Boston Edison Co. .......................... 27,500 766,562
Carolina Power & Light Co. ................. 26,500 871,188
Central & South West Corp. ................. 42,600 1,144,875
Central Costanera S.A., ADR, (Argentina) ... 37,000 1,154,544
Central Hudson Gas & Elec .................. 16,500 501,188
CMS Energy Corp. ........................... 65,860 1,794,685
Commonwealth Energy System Cos ............. 7,400 333,000
Connecticut Energy Corp. ................... 4,800 96,600
Consolidated Electric Power Asia Ltd.,
(Hong Kong) (Y) 325,000* 531,472
Delmarva Power & Light Co. ................. 47,000 1,045,750
Detroit Edison Co. ......................... 46,000 1,500,750
Dominguez Services Corp. ................... 11,000 195,250
Eastern Utilities Association .............. 42,000 966,000
Empresa Nacional de Electridad S.A.,
ADR, (Spain) ............................. 33,000 1,782,000
Florida Progress Corp. ..................... 27,500* 945,312
FPL Group, Inc. ............................ 13,950 605,081
General Public Utilities Corp. ............. 51,875 1,640,547
GTE Corp. .................................. 14,700 $ 626,588
Houston Industries, Inc. ................... 30,000* 1,372,500
Illinova Corp. ............................. 43,240 1,226,935
IPALCO Enterprises, Inc. ................... 21,500 803,562
KU Energy Corp. ............................ 13,000 381,875
MidAmerican Energy Co. ..................... 20,800* 345,800
Midlands Electricity PLC, ADR,
(United Kingdom) ......................... 35,000* 996,772
National Fuel Gas Co. ...................... 21,600 693,900
National Power PLC, ADR, (United Kingdom) .. 25,000 287,500
New England Electric System ................ 42,600 1,661,400
New Jersey Resources Corp. ................. 35,000* 975,625
Niagara Mohawk Power Corp. ................. 70,000* 691,250
Ohio Edison Co. ............................ 57,000 1,296,750
PacifiCorp ................................. 64,600 1,267,775
Pacific Gas & Electric Co. ................. 34,000* 935,000
Peco Energy Co. ............................ 51,700 1,499,300
Piedmont Natural Gas Co., Inc. ............. 5,000 117,500
Pinnacle West Capital Corp. ................ 61,800 1,684,050
Portland General Corp. ..................... 22,550 637,038
PowerGen PLC, ADR, (United Kingdom) ........ 2,000* 68,000
Providence Energy Corp. .................... 7,200 117,900
Public Service Co. Of NM** ................. 54,000 951,750
Public Service Enterprise Group, Inc. ...... 56,000 1,659,000
SBC Communications, Inc. ................... 575 31,050
Southern Co. ............................... 23,200 530,700
Telefonica de Argentina S.A.,
ADR, (Argentina) ......................... 13,800 338,100
Unicom Corp. ............................... 5,950 190,400
Union Electric Co. ......................... 26,000* 1,043,250
United Cities Gas Co. ...................... 22,300 379,100
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 15
FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
<TABLE>
<CAPTION>
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
<S> <C> <C>
UTILITIES (CONTINUED)
US West Communications Group
(formerly US West, Inc.) ................. 22,000 $ 687,500
Western Resources, Inc. .................... 36,800 1,219,000
Wicor, Inc. ................................ 15,100 464,325
WPS Resources Corp. ........................ 11,900 377,825
----------
43,749,949
==========
TOTAL COMMON STOCKS
(Cost $46,851,989) (72.69%) 51,103,074
------ ----------
PREFERRED STOCKS
OIL & GAS (2.95%)
Enron Capital LLC, 8.00%, Gtd MIPS ......... 26,500 669,125
Lasmo PLC, 10.00%, American Depositary
Shares, Ser A (United Kingdom) ........... 57,000 1,403,625
----------
2,072,750
----------
UTILITIES (20.07%)
Baltimore Gas & Electric Co., 6.99% ........ 5,000* 531,875
CL & P Capital Corp., 9.30%, Ser A ......... 20,000 532,500
Commonwealth Edison Co., $2.425 ............ 5,000 140,000
Commonwealth Edison Co., $8.40, Ser A ...... 11,336 1,147,770
Commonwealth Edison Co., $8.40, Ser B ...... 7,137 717,269
Commonwealth Energy System Cos., 4.80%,
Ser A .................................... 4,600 381,800
GTE Florida, Inc., 8.16% ................... 10,000 1,025,000
Gulf States Utilities Co., $9.96 ........... 2,955 292,545
Indianapolis Power & Light Co., 8.20% ...... 8,000 822,000
Kentucky Power, 8.72%, Ser A ............... 40,000* 1,030,000
Long Island Lighting Co., 7.95%, Ser AA .... 5,000 122,500
MCN Michigan, Limited Partnership,
9.375%, Ser A ............................ 30,000 798,750
NWPS Capital Financing, 8.125% ............. 40,000* 1,010,000
Northern States Power Co. of MN,
$6.80, Ser H ............................. 4,080* 416,160
Northern States Power Co. of MN,
Adjustable Rate Preferred, Ser A ......... 200 19,100
PG & E Capital, 7.90%, Ser A ............... 60,000* 1,507,500
PacifiCorp, $1.98, Ser 1992 ................ 30,500* 785,375
Potomac Electric Power, $3.82, Ser 1969 .... 4,670* 242,256
Public Service Electric & Gas Co., 6.92% ... 7,000* 750,750
Sprint Corp., 8.25%, DECS .................. 15,000 538,125
UtiliCorp Capital, Limited Partnership,
8.875%, Ser A ............................ 50,000* 1,300,000
----------
14,111,275
==========
TOTAL PREFERRED STOCKS
(Cost $15,609,238) (23.02%) 16,184,025
----- ----------
</TABLE>
<TABLE>
<CAPTION>
INTEREST S&P PARVALUE MARKET
ISSUER, DESCRIPTION RATE RATING (OOO'S OMITTED) VALUE
- ------------------- ---- ------ ------------- -----
<S> <C> <C> <C> <C>
BONDS
GOVERNMENTAL - U.S. AGENCIES (2.92%)
Federal Home Loan Mortgage
Corp., 07-27-05 ................. 7.30% AAA $2,000 $2,051,560
TOTAL BONDS ----------
(Cost $2,000,000) (2.92%) 2,051,560
------ ----------
SHORT TERM INVESTMENTS
CORPORATE SAVINGS ACCOUNT (0.30%)
Investors Bank & Trust Company
Daily Interest Savings Account
Current Rate 5.25% .............. 209,772
----------
TOTAL SHORT-TERM INVESTMENTS (0.30%) 209,772
------ ----------
TOTAL INVESTMENTS (98.93%) $69,548,431
====== ===========
<FN>
** Securities, other than short-term investments, newly added to the portfolio
during the period ending November 30, 1995.
** Non-income producing security.
(Y) Parenthetical disclosure of a foreign country in the security description
represents country of foreign issuer, however, security is U. S. dollar
denominated.
The percentages shown for each investment category is the total value of
that category as a percentage of the net assets of the fund.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
(UNAUDITED)
NOTE A --
ACCOUNTING POLICIES
John Hancock Strategic Series (the "Trust") is an open-end management investment
company, registered under the Investment Company Act of 1940. The Trust consists
of three series portfolios: John Hancock Utilities Fund (the "Fund"), John
Hancock Strategic Income Fund and John Hancock Independence Diversified Core
Equity Fund.
The Trustees have authorized the issuance of two classes of shares of the Fund
designated as Class A and Class B shares. The shares of each class represent an
interest in the same portfolio of investments of the Fund and have equal rights
to voting, redemption, dividends, and liquidation, except that certain expenses,
subject to the approval of the Trustees, may be applied differently to each
class of shares in accordance with current regulations of the Securities and
Exchange Commission and the Internal Revenue Service. Shareholders of a class
which bears distribution/service expenses under the terms of a distribution
plan, have exclusive voting rights regarding such distribution plan. Significant
accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Securities in the Fund's portfolio are valued on the
basis of market quotations, valuations provided by independent pricing services
or, at fair value as determined in good faith in accordance with procedures
approved by the Trustees. Short-term debt investments maturing within 60 days
are valued at amortized cost which approximates market value. All portfolio
transactions initially expressed in terms of foreign currencies have been
translated into U.S. dollars as described in "Foreign Currency Translation"
below.
JOINT REPURCHASE AGREEMENT Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Fund, along with other registered
investment companies having a management contract with John Hancock Advisers,
Inc. (the "Adviser"), a wholly-owned subsidiary of The Berkeley Financial Group,
may participate in a joint repurchase agreement transaction. 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 account on the Fund's behalf. The Adviser is responsible for ensuring that
the agreement is fully collateralized at all times.
INVESTMENT TRANSACTIONS Investment transactions are recorded as of the date of
purchase, sale or maturity. Net realized gains and losses on sales of
investments are determined on the identified cost basis.
FEDERAL INCOME TAXES The Fund's policy is to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment companies and
to distribute all of its taxable income, including any net realized gain on
investment, to its shareholders. Therefore, no federal income tax provision is
required. Additionally, net capital losses of $4,131 attributable to security
transactions incurred after October 31, 1994 are treated as arising on the first
day (June 1, 1995) of the Fund's next taxable year.
DIVIDENDS, DISTRIBUTIONS AND INTEREST Dividend income on investment securities
is recorded on the ex- dividend date. Interest income on investment securities
is recorded on the accrual basis. Foreign income may be subject to foreign
withholding taxes which are accrued as applicable.
The Fund records all distributions to shareholders from net investment income
and realized gains on the ex-dividend date. Such distributions are determined in
conformity with income tax regulations, which may differ from generally accepted
accounting principles. Dividends paid by the Fund with respect to each class of
shares will be calculated in the same manner, at the same time and will be in
the same amount, except for the effect of expenses that may be applied
differently to each class as explained previously.
EXPENSES The majority of the expenses of the Trust are directly identifiable to
an individual Fund. Expenses which are not readily identifiable to a specific
Fund are allocated in such a manner as deemed equitable, taking into
consideration, among other things, the nature and type of expense and the
relative sizes of the Funds.
CLASS ALLOCATIONS Income, common expenses and realized and unrealized gains
(losses) are determined at the Fund level and allocated
15
<PAGE> 17
daily to each class of shares based on the appropriate net assets of the
respective classes. Distribution/service fees if any, are calculated daily at
the class level based on the appropriate net assets of each class and the
specific expense rate(s) applicable to each class.
FOREIGN CURRENCY TRANSLATION All assets and 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. Transactions affecting
statement of operations accounts and net realized gain/loss on investments are
translated at the rates prevailing at the dates of the transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currency, currency gains or losses realized between the trade and
settlement dates on securities transactions and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities, resulting
from changes in the exchange rate.
DEFERRED ORGANIZATION EXPENSES Expenses incurred in connection with the
organization of the Fund have been capitalized and are being charged to the
Fund's operations ratably over a five-year period that began with the
commencement of investment operations of the Fund.
NOTE B --
MANAGEMENT FEE AND
TRANSACTIONS WITH AFFILIATES AND OTHERS
Under the present investment management contract, the Fund pays a monthly
management fee to the Adviser, for a continuous investment program equivalent,
on an annual basis, to the sum of (a) 0.70% of the first $250,000,000 of the
Fund's average daily net asset value and (b) 0.65% of the Fund's average daily
net asset value in excess of $250,000,000.
In the event normal operating expenses of the Fund, exclusive of certain
expenses prescribed by state law, are in excess of the most restrictive state
limit where the Fund is registered to sell shares of beneficial interest, the
fee payable to the Adviser will be reduced to the extent of such excess, and the
Adviser will make additional arrangements necessary to eliminate any remaining
excess expenses. The current limits are 2.5% of the first $30,000,000 of the
Fund's average daily net asset value, 2.0% of the next $70,000,000, and 1.5% of
the remaining average daily net asset value.
Additionally, the Adviser has agreed to limit the Fund's expenses, including
the management fee (but not including the transfer agent fee and the 12b-1 fee)
to 0.50% of the Fund's average daily net assets. Accordingly, for the period
ended November 30, 1995, the reduction in the Fund's expenses collectively with
any additional amounts not borne by the Fund by virtue of the expense limit
amounted to $146,255.
The Fund has a distribution agreement with John Hancock Funds, Inc. ("JH
Funds"), a wholly owned subsidiary of the Adviser. For the period ended November
30, 1995, JH Funds received net sales charges of $141,735 with regard to sales
of Class A shares. Out of this amount, $20,539 was retained and used for
printing prospectuses, advertising, sales literature and other purposes, $70,760
was paid as sales commissions and service fees to unrelated broker-dealers and
$50,436 was paid as sales commissions and service fees to sales personnel of
John Hancock Distributors, Inc. ("Distributors"), Tucker Anthony, Incorporated
("Tucker Anthony") and Sutro & Co., Inc. ("Sutro"), all of which are
broker-dealers. The Adviser's indirect parent, John Hancock Mutual Life
Insurance Company, is the indirect sole shareholder of Distributors and John
Hancock Freedom Securities Corporation and its subsidiaries, which include
Tucker Anthony and Sutro.
Class B shares redeemed within six years of purchase will be subject to a
contingent deferred sales charge ("CDSC") at declining rates beginning at 5.0%
of the lesser of the current market value at
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Utilities Fund
the time of redemption or the original purchase cost of the shares being
redeemed. Proceeds from the CDSC are paid to JH Funds and are used in whole or
in part to defray its expenses related to providing distribution related
services to the Fund in connection with the sale of Class B shares. For the
period ended November 30, 1995 contingent deferred sales charges received by JH
Funds amounted to $90,071.
In addition, to compensate JH Funds for the services it provides as
distributor of shares of the Fund, the Fund has adopted Distribution Plans with
respect to Class A and Class B shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. Accordingly, the Fund will make payments to JH
Funds for distribution and service expenses at an annual rate not to exceed
0.30% of Class A average daily net assets and 1.00% of Class B average daily net
assets to reimburse JH Funds for its distribution/service costs. Up to a maximum
of 0.25% of these payments may be service fees as defined by the amended Rules
of Fair Practice of the National Association of Securities Dealers. Under the
amended Rules of Fair Practice, curtailment of a portion of the Fund's 12b-1
payments could occur under certain circumstances.
The Fund has a transfer agent agreement with John Hancock Investor Services
Corporation ("Investor Services"), a wholly-owned subsidiary of The Berkeley
Financial Group. Prior to October 1, 1995, the Fund paid transfer agent fees as
a class specific expense based on the number of shareholder accounts and certain
out-of-pocket expenses. For the four months ended September 30, 1995 the
transfer expense, calculated as a class specific expense, was $21,148 for Class
A and $45,744 for Class B, respectively. Effective October 1, 1995, transfer
agent expense is being treated as a fund expense based on the number of
shareholder accounts and certain out-of-pocket expenses.
Messrs. Edward J. Boudreau, Jr., and Richard S. Scipione are directors and
officers of the Adviser, and its affiliates as well as Trustees of the Fund. The
compensation of unaffiliated Trustees is borne by the Fund. Effective with the
fees paid for 1995, the unaffiliated Trustees may elect to defer for tax
purposes their receipt of this compensation under the John Hancock Group of
Funds Deferred Compensation Plan. The Fund will make investments into other John
Hancock funds, as applicable, to cover its liability for the deferred
compensation. Investments to cover the Fund's deferred compensation liability
will be recorded on the Fund's books as an other asset. The deferred
compensation liability will be marked to market on a periodic basis and income
earned by the investment will be recorded on the Fund's books.
NOTE C --
INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of securities, other than obligations of the
U.S. government and its agencies and short-term obligations, during the period
ended November 30, 1995 aggregated $32,379,727 and $16,523,032, respectively.
Purchases and proceeds from sales of obligations of the U.S. government and its
agencies, during the period ended November 30, 1995 aggregated $13,584,687 and
$11,680,625, respectively.
The cost of investments owned at November 30, 1995 for Federal income tax
purposes was $64,461,227. Gross unrealized appreciation and depreciation of
investments aggregated $5,802,656, and $925,224, respectively, resulting in net
unrealized appreciation of $4,877,432.
17
<PAGE> 19
NOTES
John Hancock Funds - Utilities Fund
18
<PAGE> 20
NOTES
John Hancock Funds - Utilities Fund
19
<PAGE> 21
[LOGO] JOHN HANCOCK FUNDS Bulk Rate
A GLOBAL INVESTMENT MANAGEMENT FIRM U.S. Postage
101 Huntington Avenue Boston, MA 02199-7603 PAID
Brockton, MA
Permit No. 582
- --------------------------------------------------------------------------------
This report is for the information of shareholders of the John Hancock Utilities
Fund. It may be used as sales literature when preceded or accompanied by the
current prospectus, which details charges, investment objectives and operating
policies.
[A 1/2" x 1/2" John Hancock Funds logo in upper left hand corner of the page. A
box sectioned in quadrants with a triangle in upper left, a circle in upper
right, a cube in lower left and a diamond in lower right. A tag line below reads
"A Global Investment Management Firm." A recycled logo in lower left hand corner
with caption "Printed on Recycled Paper."]
[A recycled logo in lower left hand corner with the caption "Printed on Recylced
Paper."]
