HANCOCK JOHN WORLD FUND, N-30D, 1995-04-28

HANCOCK JOHN WORLD FUND
N-30D, 1995-04-28

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<PAGE> 1
JOHN HANCOCK FUNDS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

GLOBAL
RETAIL FUND

SEMI-ANNUAL REPORT

February 28, 1995

<PAGE> 2

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
Michael P. DiCarlo
Senior Vice President
James K. Ho
Senior Vice President
John A. Morin
Vice President
Susan S. Newton
Vice President, Assistant Secretary
and Compliance Officer
James J. Stokowski
Vice President and Treasurer

CUSTODIAN
State Street Bank and Trust Company
225 Franklin 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.]

Now that we are into 1995, early returns on New Year's resolutions are coming
in. Dieting and saving money -- Americans' long-time favorites -- are often the
most difficult resolutions to keep. This year, however, Congress may give
savers an additional incentive to stick to their guns.

Both the Republicans and Democrats want to revive Individual
Retirement Accounts (IRAs). In an effort to encourage savings, IRAs were made
available to all working Americans in 1981. Anyone with earned income could
contribute up to $2,000 annually. The contributions were fully tax-deductible,
and the earnings weren't taxed until withdrawal. IRAs became the most
successful savings program in the U.S., drawing in more than $250 billion and
13 million new participants by 1985.

Sweeping tax reforms in 1986, however, changed all that. As it stands
now, the full deduction only applies to individuals who earn less than
$25,000, married couples who earn less than $40,000 and people without
employer-sponsored retirement plans. The result of this congressional
tinkering: the number of IRA contributors declined dramatically, from 16.2
million in 1985 to 4.2 million in 1992.

Legislators are now taking a closer look at expanding the
accessibility of IRAs once again. Several proposals are on the table: (1) the
Republicans' "Contract with America" includes the American Dream Savings
Account, a type of IRA; (2) President Clinton has proposed expanding
eligibility by raising income limits; and (3) several congressional
representatives have introduced legislation to restore the universal
availability of a fully tax-deductible IRA.

We enthusiastically support restoring IRAs to their original luster.
Not only will it provide a tax break to middle-income Americans, but it will
go a long way toward raising the nation's dangerously low personal savings
rate, which is the lowest of any major industrialized country. There's an
increasing awareness that Social Security and pension plans will no longer
provide for the retirement needs of middle-income Americans. Increasing IRA
accessibility for more working individuals and families is one of the most
sensible ways to help Americans take responsibility for their future
financial needs. We urge you to support the expanded IRA by contacting your
congressional representative or senator.

Sincerely,

/s/ Edward J. Boudreau, Jr.
- ---------------------------

EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER

2
<PAGE> 3
FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

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 FEBRUARY 28, 1995.
YOU'LL ALSO FIND THE NET ASSET VALUE AND THE MAXIMUM OFFERING PRICE PER SHARE
AS OF THAT DATE.

<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995 (Unaudited)
- ------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments at value - Note C:
Common stocks (cost - $485,803).......................... $495,341
Joint repurchase agreement (cost - $65,000).............. 65,000
--------
560,341
Cash....................................................... 580
Receivable for investments sold............................ 8,900
Interest receivable........................................ 11
Dividends receivable....................................... 128
Foreign tax receivable..................................... 8
Receivable from John Hancock Advisers, Inc. - Note B....... 13,347
--------
Total Assets............. 583,315
------------------------------------
LIABILITIES:
Payable for foreign currency purchased..................... 55
Payable for investments purchased.......................... 36,393
Payable to John Hancock Advisers, Inc. and
affiliates - Note B...................................... 2,693
Accounts payable and accrued expenses...................... 13,562
--------
Total Liabilities........ 52,703
------------------------------------
NET ASSETS:
Capital paid-in............................................ 522,977
Accumulated net realized loss on investments and
foreign currency transactions.............................. (1,751)
Net unrealized appreciation of investments and
foreign currency transactions.............................. 9,458
Distributions in excess of net investment income........... (72)
--------
Net Assets............... $530,612
====================================

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 - $530,612 /61,504................................. $ 8.63
======================================================================
MAXIMUM OFFERING PRICE PER SHARE *
Class A - ($8.63 x 105.26%)................................ $ 9.08
======================================================================
<FN>
* 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.
</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.

<TABLE>
STATEMENT OF OPERATIONS
For the period September 29, 1994 (commencement of operations)
to February 28, 1995 (Unaudited)
- ------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest................................................... $ 4,450
Dividends (net of foreign withholding taxes of $25)........ 379
--------
4,829
--------
Expenses:
Investment management fee - Note B....................... 1,735
Distribution/service fee - Note B........................ 651
Transfer agent fee - Note B.............................. 651
Custodian fee............................................ 6,873
Auditing fee............................................. 3,405
Legal fees............................................... 1,135
Registration and filing fees............................. 954
Printing................................................. 908
Trustees' fees........................................... 232
Miscellaneous............................................ 57
--------
Total Expenses....................... 16,601
------------------------------------------------
Less Expenses Reimbursable by
John Hancock Advisers, Inc.-
Note B .............................. (13,347)
--------
Net Expenses......................... 3,254
------------------------------------------------
Net Investment Income................ 1,575
------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on investments sold...................... (1,466)
Net realized loss on foreign currency transactions......... (285)
Change in net unrealized appreciation/depreciation
of investments........................................... 9,538
Change in net unrealized appreciation/depreciation
of foreign currency transactions......................... (80)
--------
Net Realized and Unrealized Gain
on Investments and Foreign
Currency Transactions................ 7,707
------------------------------------------------
Net Increase in Net Assets
Resulting from Operations............ $ 9,282
================================================

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

3
<PAGE> 4
FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE PERIOD
SEPTEMBER 29, 1994
(COMMENCEMENT
OF OPERATIONS)
TO FEBRUARY 28, 1995
(UNAUDITED)
--------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment Income....................................................................................... $ 1,575
Net realized loss on investments sold and foreign currency transactions..................................... (1,751)
Change in net unrealized appreciation/depreciation of investments and foreign currency transactions......... 9,458
--------
Net Increase in Net Assets Resulting from Operations...................................................... 9,282
--------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income
Class A - ($0.0273 per share)............................................................................. (1,647)
--------
FROM FUND SHARE TRANSACTIONS -- NET*.......................................................................... 22,977
--------
NET ASSETS:
Initial Investment by John Hancock Advisers, Inc. - Note A.................................................. 500,000
--------
End of period (including distibutions in excees of net investment income of $72)............................ $530,612
========
<FN>
* Analysis of Fund Share Transactions:
<CAPTION>
FOR THE PERIOD
SEPTEMBER 29, 1994
(COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1995
----------------
SHARES AMOUNT
------ --------
<S> <C> <C>
CLASS A
Shares sold............................................................................ 2,787 $ 23,878
Shares issued to shareholders in reinvestment of distributions......................... 5 44
------ --------
2,792 23,922
Less shares repurchased................................................................ (112) (945)
------ --------
Net increase........................................................................... 2,680 22,977
Initial Investment by John Hancock Advisers, Inc. - Note A............................. 58,824 500,000
------ --------
Net increase and shares outstanding end of period...................................... 61,504 $522,977
====== ========

</TABLE>

THE STATEMENT OF CHANGES IN NET ASSETS SHOWS HOW THE VALUE OF THE FUND'S
NET ASSETS HAS CHANGED SINCE THE COMMENCEMENT OF OPERATIONS. THE DIFFERENCE
REFLECTS EARNINGS LESS EXPENSES, ANY INVESTMENT AND FOREIGN CURRENCY GAINS AND
LOSSES, AND ANY INCREASE OR DECREASE IN MONEY SHAREHOLDERS INVESTED IN THE
FUND. THE FOOTNOTE ILLUSTRATES THE NUMBER OF FUND SHARES SOLD AND REDEEMED
DURING THE PERIOD, ALONG WITH THE CORRESPONDING DOLLAR VALUES.

SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 5
FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

<TABLE>
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:
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE PERIOD SEPTEMBER 29, 1994
(COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1995
(UNAUDITED)
--------------------
<S> <C>
CLASS A
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period................................................. $ 8.50(a)
------
Net Investment Income................................................................ 0.03(b)
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions.... 0.13
------
Total from Investment Operations................................................... 0.16
------
Less Distributions:
Dividends from Net Investment Income................................................. (0.03)
------
Net Asset Value, End of Period....................................................... $ 8.63
======
Total Investment Return at Net Asset Value........................................... 1.85%(d)
Total Adjusted Investment Return at Net Asset Value (c).............................. (0.73%)(d)

RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)............................................ $ 531
Ratio of Expenses to Average Net Assets **........................................... 1.50%*
Ratio of Adjusted Expenses to Average Net Assets (c)................................. 7.65%*
Ratio of Net Investment Income to Average Net Assets................................. 0.73%*
Ratio of Adjusted Net Investment Income to Average Net Assets (c).................... (5.42%)*
Portfolio Turnover Rate.............................................................. 16%
** Expense Reimbursement Per Share................................................... $ 0.22(b)
<FN>
* On an annualized basis.
(a) Initial price to commence operations.
(b) On average month end shares outstanding.
(c) On an unreimbursed basis without expense reduction.
(d) Not annualized.
</TABLE>

THE FINANCIAL HIGHLIGHTS SUMMARIZES THE IMPACT OF THE FOLLOWING FACTORS ON A
SINGLE SHARE FOR THE PERIOD INDICATED: THE NET INVESTMENT INCOME, GAINS
(LOSSES), AND TOTAL INVESTMENT RETURN OF THE FUND. IT SHOWS HOW THE FUND'S NET
ASSET VALUE FOR A SHARE HAS CHANGED SINCE THE COMMENCEMENT OF OPERATIONS.
ADDITIONALLY, IMPORTANT RELATIONSHIPS BETWEEN SOME ITEMS PRESENTED IN THE
FINANCIAL STATEMENTS ARE EXPRESSED IN RATIO FORM.

SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 6
FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

THE SCHEDULE OF INVESTMENTS IS A COMPLETE LIST OF ALL SECURITIES OWNED BY
GLOBAL RETAIL FUND ON FEBRUARY 28, 1995. IT'S DIVIDED INTO TWO MAIN CATEGORIES:
COMMON STOCKS AND SHORT-TERM INVESTMENTS. THE COMMON STOCKS ARE FURTHER BROKEN
DOWN BY INDUSTRY GROUPS. SHORT-TERM INVESTMENTS, WHICH REPRESENT THE FUND'S
"CASH" POSITION, ARE LISTED LAST.

<TABLE>
SCHEDULE OF INVESTMENTS
February 28, 1995 (Unaudited)

<CAPTION>
ISSUER, DESCRIPTION NUMBER OF SHARES MARKET VALUE
- ------------------- ---------------- ------------
<S> <C> <C>
COMMON STOCKS
COMPUTER - DEVICES (2.68%)
America Online, Inc. *...................... 200 $ 14,200
--------
CONSUMER PRODUCTS (12.75%)
Fedders Corp. *............................. 2,000 14,000
First Alert, Inc. *......................... 500 6,500
First Team Sports, Inc. *................... 1,200 21,750
Safety 1st, Inc. *.......................... 400 8,800
Toy Biz, Inc. *............................. 800 16,600
--------
67,650
--------
HOTELS & MOTELS (2.11%)
La Quinta Motor Inns, Inc. ................. 450 11,194
--------
RETAIL - APPAREL/SHOE GROUP (10.70%)
AnnTaylor Stores, Inc. *.................... 500 16,500
Gymboree Corp. *............................ 400 9,500
Nine West Group, Inc. *..................... 400 11,250
Nordstrom, Inc.............................. 300 12,600
Urban Outfitters, Inc. *.................... 300 6,900
--------
56,750
--------
RETAIL - BUILDING PRODUCTS (7.07%)
Castorama Dubois (France)................... 100 13,981
Home Depot, Inc............................. 300 13,462
Lowe's Cos., Inc............................ 300 10,087
--------
37,530
--------
RETAIL - COMPUTERS/ELECTRONICS (8.61%)
CDW Computer Centers, Inc. *................ 300 9,450
Elkjop (Norway)............................. 700 12,374
Insight Enterprises, Inc. *................. 1,000 9,750
Micro Warehouse, Inc. *..................... 500 14,125
--------
45,699
--------
RETAIL - DISCOUNT & VARIETY (5.17%)
Dollar General Corp......................... 400 13,900
Warehouse Group Ltd. (The) (New Zealand).... 7,000 13,531
--------
27,431
--------
RETAIL - DRUG STORES (4.16%)
Eckerd Corp. *.............................. 300 7,875
Walgreen Co................................. 300 14,175
--------
22,050
--------
RETAIL - FOOD & RESTAURANTS (3.43%)
Papa John's International, Inc. *........... 300 9,225
Rock Bottom Restaurants, Inc. *............. 500 9,000
--------
18,225
--------
RETAIL - MAIL ORDER/DIRECT (9.79%)
CUC International, Inc. *................... 300 $ 10,575
Geerlings & Wade, Inc. *.................... 1,300 19,175
Seattle Filmworks, Inc. *................... 800 15,800
Williams-Sonoma, Inc. *..................... 300 6,375
--------
51,925
--------
RETAIL - MAJOR DEPARTMENT STORES (3.17%)
Cifra S.A. de CV (Series C) (Mexico)........ 5,000 4,378
Next, PLC (United Kingdom).................. 3,000 12,450
--------
16,828
--------
RETAIL - MISCELLANEOUS/DIVERSIFIED (15.02%)
Barnes & Noble, Inc. *...................... 300 8,850
Daisytek International Corp. *.............. 1,000 17,250
Office Depot, Inc. *........................ 400 9,350
OfficeMax, Inc. *........................... 500 12,500
PetSmart Inc. *............................. 400 13,750
Sports & Recreation, Inc. *................. 300 6,113
Viking Office Products, Inc. *.............. 400 11,900
--------
79,713
--------
RETAIL - SUPERMARKETS (7.29%)
Albertson's, Inc............................ 400 12,300
Carrefour Supermarche (France).............. 40 16,340
Woolworth's Ltd. (Australia)................ 4,500 10,068
--------
38,708
--------
TEXTILE (1.40%)
Authentic Fitness Corp. *................... 500 7,438
--------
TOTAL COMMON STOCKS
(Cost $485,803) (93.35%) 495,341
------- --------

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 7
FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund
<TABLE>
<CAPTION>
INTEREST PAR VALUE
ISSUER, DESCRIPTION RATE (000'S OMITTED) MARKET VALUE
- ------------------- ---- --------------- ------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
JOINT REPURCHASE AGREEMENT (12.25%)
Investment in a joint repurchase agreement
transaction with Bankers Trust Co. -
Dated 2-28-95, Due 3-01-95
(Secured by US Treasury Bond,
12.00% due 5-15-05, and US Treasury
Note, 6.00% due 6-30-96)
Note A....................................... 6.08% $ 65 $ 65,000
--------
TOTAL SHORT-TERM INVESTMENTS (12.25%) 65,000
--------
TOTAL INVESTMENTS (105.60%) $560,341
======== ========
<FN>
* Non-income producing security.
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Fund.
</TABLE>
<TABLE>
COUNTRY DIVERSIFICATION (UNAUDITED)
- -------------------------------------------------------------------------------
THE CONCENTRATION OF INVESTMENTS BY INDUSTRY GROUP FOR INDIVIDUAL SECURITIES
HELD BY THE FUND IS SHOWN IN THE SCHEDULE OF INVESTMENTS. IN ADDITION, THE
CONCENTRATION OF INVESTMENTS CAN BE AGGREGATED BY THE COUNTRIES IN WHICH THE
FUND INVESTS. THE TABLE BELOW SHOWS THE PERCENTAGES OF THE FUND'S INVESTMENTS
AT FEBRUARY 28, 1995 ASSIGNED TO THE VARIOUS COUNTRIES.
<CAPTION>
MARKET VALUE
OF SECURITIES
AS A PERCENTAGE
OF FUND'S
COUNTRY DIVERSIFICATION NET ASSETS
- ----------------------- ----------
<S> <C>
Australia.............................. 1.90%
France................................. 5.71
Mexico................................. 0.82
New Zealand............................ 2.55
Norway................................. 2.33
United Kingdom......................... 2.35
United States.......................... 77.69
Short-Term Investments................. 12.25
------
TOTAL INVESTMENTS 105.60%
======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

7
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

(UNAUDITED)
NOTE A --
ACCOUNTING POLICIES

John Hancock World Fund (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 Global Retail Fund (the
"Fund", which commenced operations on September 29, 1994), John Hancock Pacific
Basin Equities Fund and John Hancock Global Rx Fund.

The Trustees have authorized the issuance of multiple 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, redemptions, 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 terms
of a distribution plan, have exclusive voting rights to such distribution plan.
There were no Class B shares outstanding during the period ended February 28,
1995. 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 sources
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 or
less 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 large 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. Capital gains realized
on some foreign securities are subject to foreign taxes and are accrued, as
applicable.

FEDERAL INCOME TAXES The Fund intends 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. For Federal income tax purposes, net currency exchange gains and
losses from sales of foreign debt securities may be treated as ordinary income
even though such items are gains and losses for accounting purposes.

DIVIDENDS, DISTRIBUTIONS AND INTEREST Dividend income on investment securities
is recorded on the ex-dividend date, or, in the case of some foreign
securities, on the date thereafter when the Fund is made aware of the
dividend. Interest income on investment securities is recorded on the accrual
basis.

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 principals. 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 identifiable to

8
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

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 calculated at the Fund level and allocated 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
rates applicable to each class.

There were no open foreign currency forward contracts at February 28,
1995.

FOREIGN CURRENCY TRANSLATION 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. 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 at
fiscal year end, resulting from changes in the exchange rate.

OPTIONS Listed options are valued at the last quoted sales price on the
exchange on which they are primarily traded. Over-the-counter options are
valued at the mean between the last bid and asked prices. Upon the writing of a
call or put option, an amount equal to the premium received by the Fund is
included in the Statement of Assets and Liabilities as an asset and
corresponding liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the written option.

The Fund may use options contracts to manage its exposure to the stock
market. Writing puts and buying calls tend to increase the Fund's exposure to
the underlying instrument and buying puts and writing calls tend to decrease
the Fund's exposure to the underlying instrument, or hedge other Fund
investments.

The maximum exposure to loss for any purchased options is limited to
the premium initially paid for the option. In all other cases, the face (or
"notional") amount of each contract at value reflects the maximum exposure of
the Fund in these contracts, but the actual exposure is limited to the change
in value of the contract over the period the contract remains open.

Risks may also arise if counterparties do not perform under the
contracts' terms, or if the Fund is unable to offset a contract with a
counterparty on a timely basis ("liquidity risk"). Exchange-traded options have
minimal credit risk as the exchanges act as counterparties to each transaction,
and only present liquidity risk in highly unusual

9
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

market conditions. To minimize credit and liquidity risks in over-the-counter
option contracts, the Fund continuously monitors the creditworthiness of all
its counterparties.

At any particular time, except for purchased options, market or credit
risk may involve amounts in excess of those reflected in the Fund's period-end
Statement of Assets and Liabilities.

There were no written option transactions for the period ended February
28, 1995.

FINANCIAL FUTURES CONTRACTS The Fund may buy and sell financial futures
contracts for speculative purposes and/or to hedge against the effects of
fluctuations in interest rates, currency exchange rates and other market
conditions. At the time the Fund enters into a financial futures contract, it
is required to deposit with its custodian a specified amount of cash or U.S.
government securities, known as "initial margin", equal to a certain percentage
of the value of the financial futures contract being traded. Each day, the
futures contract is valued at the official settlement price of the board of
trade or U.S. commodities exchange. Subsequent payments, known as "variation
margin", to and from the broker are made on a daily basis as the market price
of the financial futures contract fluctuates. Daily variation margin
adjustments, arising from this "mark to market", are recorded by the Fund as
unrealized gains or losses.

When the contracts are closed, the Fund recognizes a gain or loss.
Risks 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 contracts may
not correlate with changes in the value of the underlying securities.

For Federal income tax purposes, the amount, character and timing of
the Fund's gains and/or losses can be affected as a result of futures
contracts.

At February 28, 1995, there were no open positions in financial futures
contracts.

DISCOUNT ON SECURITIES The Fund accretes discount from par value on securities
purchased from either the date of issue or the date of purchase over the life of
the security, as required by the Internal Revenue Code.

NOTE B --
MANAGEMENT FEE AND TRANSACTIONS
WITH AFFILIATES AND OTHERS

Under the present investment mamagement 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) 0.80% of the first $250,000,000 of the
Fund's average daily net asset value and (b) 0.70% 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.

The Adviser has voluntarily agreed to limit Fund expenses, including
the management fee (but not including the transfer agent fee and the 12b-1
fee), to 0.90% of the Fund's daily net assets. Accordingly, the reduction in
the Adviser's fee amounted to $13,347 for the period ended February 28, 1995.
The Adviser reserves the right to terminate this voluntary limit in the future.

The Fund has a distribution agreement with John Hancock Funds, Inc.
("JH Funds"), a wholly-owned subsidiary of the Adviser. For the period ended
February 28, 1995, JH Funds received net sales charges of $7 which were paid as
sales commissions to sales personnel of unrelated broker-dealers.

10
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Global Retail Fund

distribution related services to the Fund in connection with the sale of Class
B shares. For the period ended February 28, 1995, there were no contingent
deferred sales charges paid to JH Funds.

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 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, Corp. ("Investor Services"), a wholly-owned subsidiary of The
Berkeley Financial Group. Effective January 1, 1995, Class A and Class B shares
pay transfer agent fees based on transaction volume and the number of
shareholder accounts. Prior to January 1, 1995, the Fund paid a monthly
transfer agent fee equivalent, on an annual basis, to 0.30% of the Fund's
average daily net asset value plus out of pocket expenses incurred by Investor
Services on behalf of the Fund for proxy mailings.

Messrs. Edward J. Boudreau, Jr. and Richard S. Scipione are directors
and/or officers of the Adviser, and/or its affiliates, as well as Trustees of
the Fund. The Adviser owns 58,824 shares of beneficial interest 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 with regard to 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 short-term
securities, during the period ended February 28, 1995, aggregated $536,791 and
$49,522, respectively.

The cost of investments owned at February 28, 1995 (including the joint
repurchase agreement) for federal income tax purposes was $550,803. Gross
unrealized appreciation and depreciation of investments aggregated $44,799 and
$35,261, respectively, resulting in net unrealized appreciation of $9,538.

11
<PAGE> 12
NOTES

John Hancock Funds - Global Retail Fund

Effective March 15, 1995, participant directed defined contribution plans with
at least 100 eligible employees at the inception of the Fund account may
purchase Class A shares of the Fund without an initial sales charge, but if the
shares are redeemed within 12 months after the end of the calendar year in
which the purchase was made, a contingent deferred sales charge will be imposed
at the rate for Class A shares described in the prospectus.

<PAGE> 13

NOTES

John Hancock Funds - Global Retail Fund

13
<PAGE> 14
NOTES

John Hancock Funds - Global Retail Fund

<PAGE> 15
NOTES

John Hancock Funds - Global Retail Fund

15
<PAGE> 16
[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

[A 1/2" by 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 reads: "A
Global Investment Management Firm"]

- -------------------------------------------------------------------------------
This report is for the information of shareholders of the John Hancock
Global Retail 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 recycled logo in lower left hand corner with the caption "Printed on
Recycled Paper."]
JH 300SA 2/95

<PAGE> 17
JOHN HANCOCK FUNDS

PACIFIC BASIN
EQUITIES FUND

SEMI-ANNUAL REPORT

February 28, 1995
<PAGE> 18

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
Michael P. DiCarlo
Senior Vice President
James K. Ho
Senior Vice President
John A. Morin
Vice President
Susan S. Newton
Vice President, Assistant Secretary and Compliance Officer
James J. Stokowski
Vice President and Treasurer
CUSTODIAN
State Street Bank and Trust Company
225 Franklin 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
INVESTMENT SUB-ADVISERS
John Hancock Advisers International Limited
34 Dover Street
London, England W1X3RA
Indosuez Asia Advisers Limited
One Exchange Square
Suite 2606-2608
Hong Kong
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:

[PHOTO - SEE APPENDIX]

Both the Republicans and Democrats want to revive Individual Retirement
Accounts (IRAs). In an effort to encourage savings, IRAs were made available to
all working Americans in 1981. Anyone with earned income could contribute up to
$2,000 annually. The contributions were fully tax-deductible, and the earnings
weren't taxed until withdrawal. IRAs became the most successful savings program
in the U.S., drawing in more than $250 billion and 13 million new
participants by 1985.

Sweeping tax reforms in 1986, however, changed all that. As it stands now,
the full deduction only applies to individuals who earn less than $25,000,
married couples who earn less than $40,000 and people without
employer-sponsored retirement plans. The result of this congressional
tinkering: the number of IRA contributors declined dramatically, from 16.2
million in 1985 to 4.2 million in 1992.

Legislators are now taking a closer look at expanding the accessibility of
IRAs once again. Several proposals are on the table: (1) the Republicans'
"Contract with America" includes the American Dream Savings Account, a type of
IRA; (2) President Clinton has proposed expanding eligibility by raising income
limits; and (3) several congressional representatives have introduced
legislation to restore the universal availability of a fully tax-deductible
IRA.

We enthusiastically support restoring IRAs to their original luster. Not
only will it provide a tax break to middle-income Americans, but it will go a
long way toward raising the nation's dangerously low personal savings rate,
which is the lowest of any major industrialized country. There's an increasing
awareness that Social Security and pension plans will no longer provide for the
retirement needs of middle-income Americans. Increasing IRA accessibility for
more working individuals and families is one of the most sensible ways to help
Americans take responsibility for their future financial needs. We urge you to
support the expanded IRA by contacting your congressional representative or
senator.

Sincerely,

Edward J. Boudreau, Jr.
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER

2
<PAGE> 19

BY DAVID S. BECKWITH FOR THE PORTFOLIO MANAGEMENT TEAM

JOHN HANCOCK
PACIFIC BASIN EQUITIES FUND

Currency devaluation, major earthquake and bank failure roil
foreign markets; Asian investors are among the hardest hit

The last six months have not been kind to investors in foreign markets,
including investors in Japan and the emerging markets of the Pacific Basin.
Actually conditions were not that bad until last December, when the devaluation
of the peso -- the first in a series of natural and man-made crises -- sent
stock prices tumbling not only in Mexico but in smaller markets around the
globe. Next came the Japanese earthquake in January, followed one month later
by the stunning collapse of Barings, the venerable British banking house. While
each event alone was damaging to stocks, together they seemed to have a
cumulative effect on investor sentiment, further depressing prices in Asia and
other foreign markets around the world.

[PHOTO - SEE APPENDIX]
David S. Beckwith, Portfolio Manager

John Hancock Pacific Basin Equities Fund was at least fortunate to have
performed better than its peers. During the six months ended February 28, 1995,
the total return for Fund's Class A and Class B shares fell 14.13% and 14.48%
at net asset value, respectively. Meanwhile, the average Pacific region fund
lost 16.36%, according to Lipper Analytical Services.(1) In the paragraphs that
follow, we'll discuss the Fund's performance in more detail, region by region,
beginning with Japan.

"THE LAST SIX MONTHS HAVE NOT BEEN KIND TO INVESTORS IN FOREIGN MARKETS..."

JAPAN

Despite falling stock prices and some selling, we ended the period with a
sizable 24% portion of the Fund's net assets in Japan. Unfortunately, with the
Nikkei Index down almost

3
<PAGE> 20
John Hancock Funds - Pacific Basin Equities Fund

PORTFOLIO DIVERSIFICATION

[GRAPH - SEE APPENDIX]

20% during the period, Japan was the worst performing market among those
represented in the Fund. The initial impact of the Kobe earthquake was minimal.
Stocks traded listlessly with losses by insurance and banking stocks offsetting
gains in building stocks. But as the scope of the tragedy sank in, investors
fled. On the fourth day after the quake, the market tumbled almost 6% and still
hasn't really recovered.

"... WE CONTINUE TO BELIEVE STRONGLY IN JAPAN'S LONG-TERM POTENTIAL."

Nevertheless, we continue to believe strongly in Japan's long-term
potential. Among our favorite holdings is Matsushita Electric, a consumer
electronics company reporting strong earnings growth despite concerns that a
weak yen could harm exports. We've also focused on companies most likely to
profit from an economic recovery, including steel producers NKK and Daido
Steel; Minebea, which makes ball bearings; and Seino Transportation, a trucking
company. In the end, the pace of the recovery could be hastened by the massive
investment it will take to repair the damage caused by the earthquake. The only
wild card is consumer confidence, which was also badly damaged and may take
even longer to repair.

HONG KONG

With its strong monetary ties to the United States and its emphasis on
interest-rate-sensitive sectors such as banking and real estate, the Hong Kong
market has proven especially vulnerable to rising interest rates in the United
States. Hong Kong stocks were also among those that suffered most from the peso
crisis in December, which raised questions in investors' minds about many other
countries' currencies as well. Like many Asian markets, Hong Kong seems full of
bargains these days, especially in the real estate sector. Recent property
auctions suggest that prices may finally be firming. If so, we would hope to
profit eventually from our holdings in, among others, Cheung Kong, a local
real-estate development company; and Swire Pacific, a conglomerate with
substantial property interests. We've also preserved a large stake in Hutchison
Whampoa, another conglomerate with interests in property development and
container terminals. At the end of February, Hong Kong stocks totaled 24% of
the Fund's net assets, little changed from six months ago.

[SCORE CARD TABLE - SEE APPENDIX]

<TABLE>
<CAPTION>
SCORECARD

INVESTMENTS RECENT PERFORMANCE...AND WHAT'S BEHIND THE NUMBERS
<S> <C> <C>
Amcor Ltd. -- Strong earnings/shift to industrial names
Telecom Corp. of NZ -- Improving earnings and economy
Bangkok Bank -- Profit taking/concerns about higher interest rates

See "Schedule of Investments." Investment holdings are subject to change.
</TABLE>

AUSTRALIA/NEW ZEALAND

Traditionally, we've focused on mining stocks in this region, and lately
they've been especially poor performers because of slumping precious metal
prices. To the extent we outperformed our peers, one reason may be that

4
<PAGE> 21

John Hancock Funds - Pacific Basin Equities Fund

FUND PERFORMANCE
For the months ended February 28, 1995

[GRAPH - SEE APPENDIX]

Total returns for John Hancock Pacific Basin Equities
Fund are at net asset value with all distributions
reinvested. The average Pacific region fund is tracked by
Lipper Analytical Services.(1) See following page for
historical performance information.

we de-emphasized mining and natural resources in favor of other more
promising sectors of the economy. By the end of February, only one-third of the
Fund's 20% stake in Australia and New Zealand was in mining stocks. The
remaining two-thirds were in other stocks. The latter included Woolworth's, an
Australian retailer (not to be confused with Woolworth's in the U.S.); and BTR
Nylex, an Australian conglomerate that makes hoses, pipes and other industrial
materials.

SINGAPORE/MALAYSIA/THAILAND

In recent months, all three countries have suffered from a growing sense of
unease on the part of investors toward emerging markets, no matter what part of
the world they're in. Thailand was hit especially hard, and we've since sold
what had been our largest holding in that country, Thai Farmers Bank. Of the
three, Singapore has come to be viewed as somewhat of a safe haven for emerging
market investors. That's where we've found our most attractive long-term
investments in recent months. They include Keppel, which has interests in
banking, property and shipping; Fraser & Neave, a bottler; and Jardine
Matheson, a conglomerate formerly listed on the Hong Kong exchange. Investments
in the region totaled 20% of the Fund's net assets at the end of February, up
slightly from six months ago.

"...THE KEY TO SUCCESSFUL INVESTING IN THE PACIFIC BASIN IS HAVING A
LONG-TERM PERSPECTIVE."

OUTLOOK

Now more than ever, the key to successful investing in the Pacific Basin is
having a long-term perspective. We can't emphasize this enough. (Investors in
this Fund should understand the investment risks associated with investing in
international markets.) For the balance of 1995, it's possible we could see
improvements in some markets. In Hong Kong, for example, the perception that
interest rates may have peaked in the United States sparked a brief but
impressive rally in February. There could well be further gains should rates
begin to fall. On the other hand, given the current unstable climate in the
region, there's no telling what the next crisis will be and what effect it may
have. Investors would, therefore, do well to temper their short-term
expectations. Meanwhile, we'll continue to search for bargains among the best
run companies in the fastest-growing industries in Asia. It's a disciplined
approach that has been consistently successful in the past and we believe it
should prove successful again in the future.

(1) Figures from Lipper Analytical Services include reinvested distributions
and do not take into account sales charges. Actual load-adjusted performance
would be different.

5
<PAGE> 22

NOTES TO PERFORMANCE INFORMATION

John Hancock Funds - Pacific Basin Equities Fund

In accordance with the reporting requirements of the Securities and Exchange
Commission, the following data are supplied for the periods ended December 31,
1994 with all distributions reinvested in shares. The average annualized total
returns for the 1-year and 5-year periods and since inception on September 8,
1987 for Class A shares were (13.82%), 5.39% and 7.78%, respectively, and
reflect payment of the maximum sales charge of 5.00%. Total return (not
annualized) since inception on March 7, 1994 for Class B shares was (9.48%) and
reflects the applicable contingent deferred sales charge (maximum contingent
deferred sales charge is 5.00% and declines to 0% over 6 years). For Class A
shares different sales charges were in effect prior to January 1992 and are not
reflected in the performance data. All performance data shown represents past
performance and should not be considered indicative of future performance.
Returns and principal values of Fund investments will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. International investing involves special risks, such as currency
fluctuations, political risks and differences in accounting and financial
reporting. See the prospectus for details.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT OVER LIFE OF THE FUND

JOHN HANCOCK PACIFIC BASIN EQUITIES FUND: CLASS A

[GRAPH - SEE APPENDIX]

JOHN HANCOCK PACIFIC BASIN EQUITIES FUND: CLASS B

[GRAPH - SEE APPENDIX]

6
<PAGE> 23

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995 (Unaudited)

<TABLE>
<S> <C>
ASSETS:
Investments at value - Note C:
Common stocks and warrants (cost - $48,627,451)........... $46,750,962
Joint repurchase agreement (cost - $2,394,000)............ 2,394,000
-----------
49,144,962
Cash ....................................................... 1,370
Foreign currency, at value (cost - $1,758,209) ............. 1,757,067
Receivable for shares sold ................................. 174,944
Receivable for investments sold ............................ 77,052
Interest receivable ........................................ 1,049
Dividends receivable ....................................... 24,955
-----------
Total Assets ............................ 51,181,399
-------------------------------------------------------
LIABILITIES:
Payable for shares repurchased.............................. 45,618
Payable for investments purchased........................... 227,236
Payable to John Hancock Advisers, Inc. and
affiliates - Note B....................................... 47,651
Accounts payable and accrued expenses....................... 96,395
-----------
Total Liabilities........................ 416,900
-------------------------------------------------------
NET ASSETS:
Capital paid-in............................................. 53,847,961
Accumulated net realized loss on investments and
foreign currency transactions............................. ( 1,053,654)
Net unrealized depreciation of investments and
foreign currency transactions............................. ( 1,875,240)
Accumulated net investment loss............................. ( 154,568)
-----------
Net Assets............................... $50,764,499
=======================================================
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, respectively)
Class A - $38,636,046 / 2,945,530........................... $ 13.12
==========================================================================
Class B - $12,128,453 / 930,768............................. $ 13.03
==========================================================================
MAXIMUM OFFERING PRICE PER SHARE *
Class A - ($13.12 x 105.26%)................................ $ 13.81
==========================================================================
</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 FEBRUARY 28, 1995. YOU'LL
ALSO FIND THE NET ASSET VALUE AND THE MAXIMUM OFFERING PRICE PER SHARE AS OF
THAT DATE.

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.

STATEMENT OF OPERATIONS
Six months ended February 28, 1995 (Unaudited)

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $27,769)......... $ 421,712
Interest........................................................ 61,903
----------
483,615
----------
Expenses:
Investment management fee - Note B............................ 217,191
Distribution/service fee - Note B
Class A...................................................... 64,841
Class B...................................................... 55,351
Transfer agent fee - Note B
Class A...................................................... 88,964
Class B...................................................... 23,636
Legal fees.................................................... 62,980
Custodian fee................................................. 58,173
Registration and filing fees.................................. 31,505
Auditing fee.................................................. 15,199
Printing...................................................... 14,871
Trustees' fees................................................ 2,941
Miscellaneous................................................. 2,531
----------
Total Expenses............................... 638,183
---------------------------------------------------------
Net Investment Loss.......................... ( 154,568)
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on investments sold........................... ( 1,032,491)
Net realized loss on foreign currency transactions.............. ( 9,368)
Change in net unrealized appreciation/depreciation
of investments................................................ ( 7,306,928)
Change in net unrealized appreciation/depreciation of
foreign currency transactions................................. 129,094
-----------
Net Realized and Unrealized
Loss on Investments and Foreign
Currency Transactions........................ ( 8,219,693)
----------------------------------------------------------
Net Decrease in Net Assets
Resulting from Operations.................... ($8,374,261)
==========================================================
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

7
<PAGE> 24

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1995 AUGUST 31,
(UNAUDITED) 1994
----------------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss..................................................................... ($ 154,568) ($ 270,589)
Net realized gain (loss) on investments sold and foreign currency transactions.......... ( 1,041,859) 2,359,655
Change in net unrealized appreciation/depreciation of investments and foreign
currency transactions................................................................. ( 7,177,834) 4,022,518
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations....................... ( 8,374,261) 6,111,584
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gain on investments sold and foreign currency
transactions
Class A - ($0.5482 and $0.4050 per share, respectively)............................... ( 1,615,390) ( 815,022)
Class B ** - ($0.5482 and none per share, respectively)............................... ( 485,450) --
----------- -----------
Total Distributions to Shareholders.................................................. ( 2,100,840) ( 815,022)
----------- -----------

FROM FUND SHARE TRANSACTIONS -- NET*..................................................... 1,498,622 39,876,044
----------- -----------
NET ASSETS:
Beginning of period..................................................................... 59,740,978 14,568,372
----------- -----------
End of period (including accumulated net investment loss of $154,568 and none,
respectively).......................................................................... $50,764,499 $59,740,978
=========== ===========
</TABLE>

* ANALYSIS OF FUND SHARE TRANSACTIONS:

<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 28, 1995 YEAR ENDED AUGUST 31,
(UNAUDITED) 1994
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
CLASS A
Shares sold........................................................ 518,770 $ 7,389,446 3,060,288 $45,798,982
Shares issued to shareholders in reinvestment of distributions..... 111,908 1,557,682 50,799 779,990
-------- ----------- ---------- -----------
630,678 8,947,128 3,111,087 46,578,972
Less shares repurchased............................................ (849,647) (12,252,194) (1,044,694) (15,671,855)
-------- ----------- ---------- -----------
Net increase (decrease)............................................ (218,969) ($3,305,066) 2,066,393 $30,907,117
======== =========== ========== ==========

CLASS B **
Shares sold........................................................ 846,657 $11,722,987 633,031 $ 9,493,869
Shares issued to shareholders in reinvestment of distributions..... 31,336 434,007 -- --
-------- ----------- ---------- -----------
877,993 12,156,994 633,031 9,493,869
Less shares repurchased............................................ (545,768) ( 7,353,306) ( 34,488) ( 524,942)
-------- ----------- ---------- -----------
Net increase....................................................... 332,225 $ 4,803,688 598,543 $ 8,968,927
======== =========== ========== ===========
</TABLE>

** Class B shares commenced operations on March 7, 1994

SEE NOTES TO FINANCIAL STATEMENTS.

8
<PAGE> 25

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
periods indicated, investment returns, key ratios and supplemental data are as
follows:

<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 28, 1995 YEAR ENDED AUGUST 31,
----------------- ------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
CLASS A
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period.................... $ 15.88 $ 13.27 $ 8.87 $ 9.05 $10.34 $11.10
------- ------- ------ ------ ------ ------
Net Investment Loss..................................... ( 0.03) ( 0.10)(a) ( 0.11)(a) ( 0.07)(a) ( 0.01) ( 0.04)
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions.......... ( 2.18) 3.12 4.51 ( 0.11) ( 0.33) 0.11
------- ------- ------ ------ ------ ------
Total from Investment Operations....................... ( 2.21) 3.02 4.40 ( 0.18) ( 0.34) 0.07
------- ------- ------ ------ ------ ------
Distributions from Net Realized Gain on Investments
Sold and Foreign Currency Transactions................. ( 0.55) ( 0.41) -- -- ( 0.95) ( 0.83)
------- ------- ------ ------ ------ ------
Net Asset Value, End of Period.......................... $ 13.12 $ 15.88 $13.27 $ 8.87 $ 9.05 $10.34
======= ======= ====== ====== ====== ======
Total Investment Return at Net Asset Value.............. ( 14.13%)(d) 22.82% 49.61% ( 1.99%) ( 2.15%) ( 0.44%)
Total Adjusted Investment Return at Net Asset
Value (c).............................................. -- -- 48.31% ( 5.57%) ( 5.19%) ( 2.86%)

RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)............... $38,636 $50,261 $14,568 $3,222 $4,065 $4,578
Ratio of Expenses to Average Net Assets**............... 2.20%* 2.43% 2.94% 2.73% 2.75% 2.45%
Ratio of Adjusted Expenses to Average Net Assets (c).... -- -- 4.24% 6.31% 5.79% 4.87%
Ratio of Net Investment Loss to Average Net Assets...... ( 0.39%)* ( 0.66%) ( 0.98%) ( 0.82%) ( 0.06%) ( 0.28%)
Ratio of Adjusted Net Investment Loss to Average
Net Assets (c)......................................... -- -- ( 2.28%) ( 4.40%) ( 3.10%) ( 2.70%)
Portfolio Turnover Rate................................. 30% 68% 171% 179% 151% 154%
**Expense Reimbursement Per Share....................... -- -- $ 0.14 $ 0.31 $ 0.24 $ 0.31
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

9
<PAGE> 26

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

FINANCIAL HIGHLIGHTS (continued)

<TABLE>
<CAPTION>
PERIOD
SIX MONTHS ENDED ENDED
FEBRUARY 28, 1995 AUGUST 31,
----------------- ----------
(UNAUDITED) 1994
----------- ----
<S> <C> <C>
CLASS B**
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period........................................................ $ 15.84 $15.11(b)
------- ------
Net Investment Loss......................................................................... ( 0.09)(a) ( 0.09)(a)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions.... ( 2.17) 0.82
------- ------
Total from Investment Operations........................................................... ( 2.26) 0.73
------- ------
Distributions from Net Realized Gain on Investments Sold and Foreign Currency Transactions.. ( 0.55) --
------- ------
Net Asset Value, End of Period.............................................................. $ 13.03 $15.84
======= ======
Total Investment Return at Net Asset Value.................................................. ( 14.48%)(d) 4.83%

RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)................................................... $12,128 $9,480
Ratio of Expenses to Average Net Assets..................................................... 2.93%* 3.00%*
Ratio of Net Investment Loss to Average Net Assets.......................................... ( 1.28%)* ( 1.40%)*
Portfolio Turnover Rate..................................................................... 30% 68%
</TABLE>

* On an annualized basis.
** Class B shares commenced operations on March 7, 1994.
(a) On average month end shares outstanding.
(b) Initial price at commencement of operations.
(c) On an unreimbursed basis without expense reduction.
(d) Not annualized.

THE FINANCIAL HIGHLIGHTS SUMMARIZES THE IMPACT OF THE FOLLOWING FACTORS ON A
SINGLE SHARE FOR THE PERIOD INDICATED: THE NET INVESTMENT INCOME (LOSS), 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.

10
<PAGE> 27

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

SCEDULE OF INVESTMENTS
February 28, 1995 (Unaudited)

<TABLE>
<CAPTION>
ISSUER, DESCRIPTION NUMBER OF SHARES MARKET VALUE
- ------------------- ---------------- ------------
<S> <C> <C>
COMMON STOCKS
AUSTRALIA (15.59%)
Amcor Ltd. (Paper) ........................ 160,000 $ 1,154,249
Australian National Industries Ltd.
(Diversified Operations) ................. 730,000 727,682
Broken Hill Proprietary Co., Ltd.
(Diversified Operations) ................. 110,000 1,518,866
BTR Nylex Ltd. (Diversified Operations) ... 430,000* 781,068
News Corp. Ltd. (The) (Ltd Voting
Pref shares) (Publishing)** ............. 103,500* 410,393
News Corp. Ltd. (The) (Publishing) ........ 207,000 921,664
Odin Mining & Investment Co., Ltd.
(Gold Mining & Products)** .............. 75,000* 24,921
Sunbeam Victa Holdings Ltd. (Appliances) .. 67,500 48,844
Western Mining Corp. Holdings Ltd. (Metal
Processing & Products) .................. 225,000 1,206,158
Woolworth's Ltd. (Retail) ................. 501,000* 1,120,896
-----------
7,914,741
-----------

HONG KONG (24.21%)
Cheung Kong (Holdings) Ltd. (Real Estate) . 308,000 1,342,508
CITIC Pacific Ltd. (Diversified Operations) 510,000 1,269,805
Hang Seng Bank (Banks) .................... 113,000* 701,546
Harbin Power Equipment Co.,
Ltd. (Machinery)** ...................... 868,000* 261,023
Hongkong Electric Holdings Ltd.
(Utilities) ............................. 514,000 1,539,042
Hongkong Land Holdings Ltd.
(Real Estate) ........................... 280,000 534,178
HSBC Holdings Ltd. (Banks) ................ 130,000 1,366,164
Hutchison Whampoa Ltd, (Diversified
Operations) ............................. 280,000* 1,187,868
Hysan Development Co., Ltd.
(Real Estate) ........................... 380,000* 771,648
Sun Hung Kai Properties Ltd.
(Real Estate) ........................... 192,000 1,291,341
Swire Pacific Ltd. (Diversified Operations) 210,000 1,473,517
Yizheng Chemical Fibre Co., Ltd.
(Chemicals) ............................... 1,564,000* 551,238
-----------
12,289,878
-----------
INDONESIA (2.25%)
PT Astra International
(Automobile/Trucks) ..................... 192,500 325,682
</TABLE>

THE SCHEDULE OF INVESTMENTS IS A COMPLETE LIST OF ALL SECURITIES OWNED BY THE
PACIFIC BASIN EQUITIES FUND ON FEBRUARY 28, 1995. IT'S DIVIDED INTO THREE MAIN
CATEGORIES: COMMON STOCKS, WARRANTS AND SHORT-TERM INVESTMENTS. COMMON STOCKS
AND WARRANTS ARE FURTHER BROKEN DOWN BY COUNTRY. SHORT-TERM INVESTMENTS, WHICH
REPRESENT THE FUND'S "CASH" POSITION, ARE LISTED LAST.

<TABLE>
<CAPTION>
ISSUER, DESCRIPTION NUMBER OF SHARES MARKET VALUE
- ------------------- ---------------- ------------
<S> <C> <C>
INDONESIA (CONTINUED)
PT Bank International Indonesia
(Banks) ................................. 239,800 $ 624,789
PT Indonesian Satellite Corp.,
American Depositary Receipts
(Telecommunications)** .................. 5,300* 188,813
-----------
1,139,284
-----------
JAPAN (23.99%)
Daido Steel Co., Ltd. (Steel) ............. 200,000 983,793
Denki Kagaku Kogyo K.K. (Chemicals)** ..... 295,000 983,690
Fanuc Ltd. (Machinery) .................... 35,000 1,428,054
Itochu Corp. (Diversified Operations) ..... 200,000 1,178,481
Jusco Co., Ltd. (Retail) .................. 63,000 1,069,953
Marui Co., Ltd. (Retail) .................. 69,000 986,072
Matsushita Electric Industrial Co.,
Ltd. (Electronics) ...................... 60,000* 869,880
Minebea Co., Ltd. (Machinery) ............. 100,000* 610,987
NKK Corp. (Steel)** ....................... 373,000* 961,808
Seino Transportation Co., Ltd.
(Transportation) ........................ 50,000 787,035
Sumitomo Trust & Banking Co., Ltd.
(The) (Banks) ........................... 110,000* 1,275,825
Toshiba Corp. (Electronics) ............... 165,000 1,044,012
-----------
12,179,590
-----------
MALAYSIA (6.06%)
Aokam Perdana Berhad
(Building Products) ..................... 170,400 988,020
Land & General Berhad (Real Estate) ....... 450,000 1,278,159
Resorts World Berhad (Leisure &
Recreation) ............................. 150,000* 810,970
-----------
3,077,149
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

11
<PAGE> 28

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

<TABLE>
<CAPTION>
NUMBER OF SHARES/
ISSUER, DESCRIPTION WARRANTS MARKET VALUE
- ------------------- -------- ------------
<S> <C> <C>
NEW ZEALAND (4.30%)
Carter Holt Harvey Ltd.
(Building Products) .................... 550,000 $ 1,213,082
Telecom Corporation of New Zealand
(Telecommunications) ................... 280,000 970,719
-----------
2,183,801
-----------
PHILIPPINES (1.26%)
Benpres Holdings Corp., Global Depositary
Receipts (Diversified Operations)** .... 20,000* 170,000
JG Summit Holdings, Inc.
(Diversified Operations) ............... 970,000 271,751
Manila Electric Co. (Utilities) .......... 17,200* 195,759
-----------
637,510
-----------
SINGAPORE (11.33%)
Fraser & Neave Ltd. (Beverages) .......... 80,000 844,720
Jardine Matheson Holdings Ltd.
(Diversified Operations) ............... 160,000 1,472,000
Keppel Corp. Ltd. (Diversified
Operations) ............................ 160,000 1,280,883
Singapore Press Holdings Ltd. (Publishing) 68,700 1,180,559
United Overseas Bank Ltd. (Banks) ........ 100,000* 973,085
-----------
5,751,247
-----------
THAILAND (3.06%)
Bangkok Bank (Banks) ..................... 125,000 1,072,574
Italian-Thai Development Public Co.,
Ltd. (Construction)** .................. 43,000* 482,759
-----------
1,555,333
-----------
TOTAL COMMON STOCKS
(Cost $48,627,451) (92.05%) 46,728,533
------- -----------

WARRANTS
SINGAPORE (0.04%)
Goldtron Ltd. (Electronics)** ............ 62,500* 22,429
-----------
TOTAL WARRANTS
(Cost $0) (0.04%) 22,429
------- -----------
TOTAL COMMON STOCK AND WARRANTS
(Cost $48,627,451) (92.09%) 46,750,962
------- -----------

INTEREST PAR VALUE WARRANT
ISSUER, DESCRIPTION RATE (000'S OMITTED) VALUE
- ------------------- ---- --------------- -----
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
JOINT REPURCHASE AGREEMENT (4.72%)
Investment in a joint repurchase
agreement transaction with BT
Securities Corp. - Dated 02-28-95,
Due 03-01-95 (secured by U.S.
Treasury Bond, 12.00% Due 05-15-05
and by U.S. Treasury Note, 6.00%
Due 06-30-96) Note A................. 6.08% $ 2,394 $ 2,394,000
TOTAL SHORT-TERM INVESTMENTS ( 4.72%) 2,394,000
------- -----------
TOTAL INVESTMENTS ( 96.81%) $49,144,962
======= ===========
</TABLE>

* Securities, other than short-term investments, newly added to the portfolio
during the six months ended February 28, 1995.
** Non-income producing security.
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Fund.

SEE NOTES TO FINANCIAL STATEMENTS.

12
<PAGE> 29

FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

INDUSTRY DIVERSIFICATION

THE FUND PRIMARILY INVESTS IN SECURITIES ISSUED BY COMPANIES OF OTHER
COUNTRIES, PRIMARILY IN THE PACIFIC BASIN REGION. THE PERFORMANCE OF THE FUND
IS CLOSELY TIED TO THE ECONOMIC CONDITIONS WITHIN THE COUNTRIES IT INVESTS. THE
CONCENTRATION OF INVESTMENTS BY COUNTRY FOR INDIVIDUAL SECURITIES HELD BY THE
FUND IS SHOWN IN THE SCHEDULE OF INVESTMENTS. IN ADDITION, THE CONCENTRATION OF
INVESTMENTS CAN BE AGGREGATED BY VARIOUS INDUSTRY GROUPS. THE TABLE BELOW SHOWS
THE PERCENTAGES OF THE FUND'S INVESTMENTS AT FEBRUARY 28, 1995 ASSIGNED TO THE
VARIOUS INVESTMENT CATEGORIES.

<TABLE>
<CAPTION>
MARKET VALUE OF
SECURITIES AS A
INVESTMENT CATEGORIES % OF NET ASSETS
- --------------------- ---------------
<S> <C>
Appliances ................................................. 0.10%
Automobile/Trucks .......................................... 0.64
Banks ...................................................... 11.85
Beverages .................................................. 1.66
Building Products .......................................... 4.34
Chemicals .................................................. 3.02
Construction ............................................... 0.95
Diversified Operations ..................................... 22.32
Electronics ................................................ 3.81
Gold Mining & Products ..................................... 0.05
Leisure & Recreation ....................................... 1.60
Machinery .................................................. 4.53
Metal Processing & Products ................................ 2.38
Paper ...................................................... 2.27
Publishing ................................................. 4.95
Real Estate ................................................ 10.28
Retail ..................................................... 6.26
Steel ...................................................... 3.83
Telecommunications ......................................... 2.28
Transportation ............................................. 1.55
Utilities .................................................. 3.42
Short-Term Investments ..................................... 4.72
-----
TOTAL INVESTMENTS 96.81%
=====
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

13
<PAGE> 30

NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

(UNAUDITED)
NOTE A --
ACCOUNTING POLICIES

John Hancock World Fund (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 Pacific Basin Equities Fund
(the "Fund"), John Hancock Global Rx Fund and John Hancock Global Retail Fund.
Prior to January 2, 1995, John Hancock Pacific Basin Equities Fund was known as
John Hancock Freedom Pacific Basin Equities Fund and John Hancock Global Rx
Fund was known as John Hancock Freedom Global Rx Fund.

The Trustees have authorized the issuance of multiple classes of shares of
the Fund, designated as Class A, Class B and Class C shares. The shares of each
class represent an interest in the same portfolio of investments of the Fund
and have equal rights to voting, redemptions, 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 terms of a distribution plan, have exclusive voting rights to such
distribution plan. No Class C shares had been issued as of February 28, 1995.
Significant accounting policies of the Fund are as follows:

DIVIDENDS, DISTRIBUTIONS AND INTEREST Dividend income on investment securities
is recorded on the ex-dividend date or, in the case of some foreign securities,
on the date thereafter when the Fund is made aware of the dividend. 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 principals. 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

14
<PAGE> 31

NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

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 calculated at the Fund level and allocated daily to each class of
shares based on the appropriate net assets of the respective classes. Transfer
agent expenses and 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.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into forward
foreign currency exchange contracts as a hedge against the effect of
fluctuations in currency exchange rates. A forward foreign currency exchange
contract involves an obligation to purchase or sell a specific currency at a
future date at a set price. The aggregate principal amounts of the contracts
are marked-to-market daily at the applicable foreign currency exchange rates.
Any resulting unrealized gains and losses are included in the determination of
the Fund's daily net assets. The Fund records realized gains and losses at the
time the forward foreign currency contract is closed out or offset by a
matching contract. Risks may arise upon entering these contracts from potential
inability of counterparties to meet the terms of the contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar. These contracts involve market or credit risk in excess of the
unrealized gain or loss reflected in the Fund's statement of Assets and
Liabilities. The Fund may also purchase and sell forward contracts to
facilitate the settlement of foreign currency denominated portfolio
transactions, under which it intends to take delivery of the foreign currency.
Such contracts normally involve no market risk other than that offset by the
currency amount of the underlying transaction.

At February 28, 1995, there were no open forward foreign currency exchange
contracts.

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.

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 at
fiscal year end, resulting from changes in the exchange rate.

DISCOUNT ON SECURITIES The Fund accretes discount from par value on securities
purchased from either the date of issue or the date of purchase over the life
of the security, as required by the Internal Revenue Code.

NOTE B --
MANAGEMENT FEE
AND TRANSACTIONS WITH AFFILIATES
AND OTHERS

The Adviser is solely responsible for advising the Fund with respect to
investments in the United States and Canada. The Fund and the Adviser also have
a sub-investment management contract with John Hancock Advisers International
Limited ("JHAI"), a wholly-owned subsidiary of the Adviser, under which JHAI,
subject to the review of the Trustees and overall supervision of the Adviser,
provides the Fund with investment management services and advice with respect
to that portion of the Fund's assets invested in countries other than

15
<PAGE> 32

NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

the United States and Canada. At a special meeting on August 23, 1994, the
Fund's shareholders approved a second subadvisory contract by and between the
Adviser and Indosuez Asia Advisers Limited ("IAAL"). Pursuant to such contract,
which became effective September 1, 1994, IAAL and JHAI will serve as
co-subadvisers to the Fund. IAAL will provide additional expertise in Asian and
Pacific Basin countries. The addition of IAAL to the Fund's investment advisory
team will not increase the Fund's expenses as the Adviser is solely responsible
for paying IAAL as well as JHAI.

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) 0.80% of the first $200,000,000 of the
Fund's average daily net asset value and (b) 0.70% of the Fund's average daily
net asset value in excess of $200,000,000. The Adviser pays JHAI a quarterly
management fee equivalent, on an annual basis, to the sum of (a) 0.50% of the
first $200,000,000 of the Fund's average daily net asset value and (b) 0.4375%
of the Fund's average daily net asset value in excess of $200,000,000. As of
September 1, 1994, JHAI has waived all but 0.05% of their fee. The Adviser pays
IAAL quarterly a subadvisory fee at the annual rate of (a) 0.30% of the first
$100,000,000 of the Fund's average daily net assets managed by IAAL plus (b)
40% percent of the gross management fee received by the Adviser pursuant to the
investment management contract with respect to the Fund's average daily net
assets in excess of $100,000,000 which are managed by IAAL. The rate increases
to 50% on net assets 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.

The Fund has a distribution agreement with John Hancock Funds, Inc. ("JH
Funds"), a wholly-owned subsidiary of the Adviser. Prior to January 1, 1995, JH
Funds was known as John Hancock Broker Distribution Services, Inc. For the
period ended February 28, 1995, net sales charges received with regard to sales
of Class A shares amounted to $140,422. Out of this amount, $18,392 was
retained and used for printing prospectuses, advertising, sales literature and
other purposes, $41,278 was paid as sales commissions to unrelated
broker-dealers and $80,815 was paid as sales commissions to sales personnel of
John Hancock Distributors, Inc. ("Distributors"), Tucker Anthony, Incorporated
("Tucker Anthony") and Sutro & Co., ("Sutro"). Distributors is a wholly-owned
subsidiary of The Berkeley Financial Group. 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, all of which are
broker-dealers.

Class B shares which are 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 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 February 28,
1995, contingent deferred sales charges paid to JH Funds amounted to $26,952.

In addition, to compensate JH Funds for the services it provides as
distributors of shares of the Fund, the Fund has adopted Distribution Plans
with respect to Class A and Class B 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 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

16
<PAGE> 33

NOTES TO FINANCIAL STATEMENTS

John Hancock Funds - Pacific Basin Equities Fund

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 January 1, 1995, Investor Services was known as John
Hancock Fund Services, Inc. Effective January 1, 1995, Class A and Class B
shares pay transfer agent fees based on transaction volume and the number of
shareholder accounts. Prior to January 1, 1995, the Fund paid Investor Services
a monthly transfer agent fee equivalent, on an annual basis, to 0.40% and 0.42%
of the average daily net asset value of Class A and Class B shares of the Fund,
respectively, plus out-of-pocket expenses incurred by Fund Services on behalf
of the Fund for proxy mailings.

Messrs. Edward J. Boudreau, Jr. and Richard S. Scipione are directors and/or
officers of the Adviser and/or its affiliates, as well as Trustees of the Fund.
The Adviser owns 10,000 shares of beneficial interest of the Fund. Trustee
Edward J. Boudreau, Jr. is Managing Director of JHAI. 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 with regard to 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 short-term
securities, during the period ended February 28, 1995, aggregated $15,440,998
and $15,978,098, respectively.

The cost of investments owned at February 28, 1995 (including the joint
repurchase agreement) for federal income tax purposes was $51,033,244. Gross
unrealized appreciation and depreciation of investments aggregated $2,065,519
and $3,953,801, respectively, resulting in net unrealized depreciation of
$1,888,282.

17
<PAGE> 34

NOTES

John Hancock Funds - Pacific Basin Equities Fund

18
<PAGE> 35

NOTES

John Hancock Funds - Pacific Basin Equities Fund

19
<PAGE> 36

Bulk Rate
(LOGO) JOHN HANCOCK FUNDS U.S. Postage
A GLOBAL INVESTMENT MANAGEMENT FIRM PAID
Brockton, MA
101 HUNTINGTON AVENUE BOSTON, MA 02199-7603 Permit No. 582

This report is for the information of shareholders of the John Hancock
Freedom Pacific Basin Equities Fund. It may be used as sales literature when
preceded or accompanied by the current prospectus, which details charges,
investment objectives and operating policies.

(LOGO) Printed on Recycled Paper
<PAGE> 37

APPENDIX

JOHN HANCOCK PACIFIC BASIN EQUITIES FUND

Page 2
A 1 1/4" x 1" photo of Edward J. Boudreau Jr., Chairman and Chief Executive
Officer, flush right, next to second paragraph.

Page 3
A 2 1/2" x 2 1/4" photo of David S. Beckwith centered at bottom right. Caption
reads: "David S. Beckwith, Portfolio Manager."

Page 4
Pie chart with the heading "Portfolio Diversification" at top of left hand
column. The chart is divided into ten sections. Going from left to right:
Singapore 11%; Thailand 3%; Short-Term Investments and Other 9%; Hong Kong 24%;
Australia 16%; Indonesia 2%; Japan 24%; Malaysia 6%; New Zealand 4%; and
Philippines 1%. A footnote below states "As a percentage of net assets on
February 28, 1995."

Table entitled "Scorecard" at bottom of left hand column. The header for the
left column is "Investments"; the header for the right column is "Recent
performance ... and what's behind the numbers. The first listing is Amcor Ltd.
followed by an up arrow and the phrase "Strong earnings/shift to industrial
names." The second listing is Telecom Corp. of NZ followed by an up arrow and
the phrase "Improving earnings and economy." The third listing is Bangkok Bank
followed by a down arrow and the phrase "Profit taking/concerns about higher
interest rates." Footnote below reads: "See "Schedule of Investments.
"Investment holdings are subject to change."

Page 5
Bar chart with heading "Fund Performance" at top of left hand column. Under the
heading is the footnote: "For the six months ended February 28, 1995." The
chart is scaled in increments of 5% from bottom to top, with 0% at the top and
- -20% at the bottom. Within the chart, there are three solid bars. The first
represents the -14.13% total return for John Hancock Pacific Basin Equities
Fund: Class A. The second represents the -14.48% total return for John Hancock
Pacific Basin Equities Fund: Class B. The third represents the -16.36% total
return for the average Pacific region fund. The footnote below states: "Total
returns for John Hancock Pacific Basin Equities Fund are at net asset value
with all distributions reinvested. The average Pacific region fund is tracked
by Lipper Analytical Services. (1) See following page for historical
performance information."

Back Cover
A 1/2" by 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 the caption " Printed on
Recycled Paper."
<PAGE> 38

Pacific Basin Equities Fund
Class A shares

Line chart with the heading Pacific Basin Equities 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 Pacific Basin Equities Fund on September 8, 1987, before sales charge,
and is equal to $17,146 as of February 28, 1995. The second line represents
the Pacific Basin Equities Fund after sales charge and is equal to $16,283 as
of February 28, 1995. The third line represents the value of the Morgan
Stanley Capital International (MSCI) Pacific Index and is equal to $10,685* as
of February 28, 1995.

Pacific Basin Equities Fund
Class B shares

Line chart with the heading Pacific Basin Equities 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 Morgan Stanley Capital International
(MSCI) Pacific Index and is equal to $9,023* as of February 28, 1995. The
second line represents the value of the hypothetical $10,000 investment made in
the Pacific Basin Equities Fund on March 7, 1994, before contingent deferred
sales charge, and is equal to $8,965 as of February 28, 1995. The third line
represents the Pacific Basin Equities Fund after contingent deferred sales
charge and is equal to $8,516 as of February 28, 1995.

* Morgan Stanley Capital International (MSCI) Pacific Index is an unmanaged
index that measures performance for a diverse range of global stock markets,
including Australia, Hong Kong, Japan, New Zealand, and Singapore/Malaysia.
<PAGE> 39
JOHN HANCOCK FUNDS
- --------------------------------------------------------------------------------

GLOBAL Rx
FUND

SEMI-ANNUAL REPORT

February 28, 1995

<PAGE> 40
CHAIRMAN'S MESSAGE

DEAR FELLOW SHAREHOLDERS:

Now that we are into 1995, early returns on New Year's resolutions are coming
in. Dieting and saving money -- Americans' long-time favorites -- are often the
most difficult resolutions to keep. This year, however, Congress may give savers
an additional incentive to stick to their guns.

[PHOTO - SEE APPENDIX]

Both the Republicans and Democrats want to revive Individual Retirement
Accounts (IRAs). In an effort to encourage savings, IRAs were made available to
all working Americans in 1981. Anyone with earned income could contribute up to
$2,000 annually. The contributions were fully tax-deductible, and the earnings
weren't taxed until withdrawal. IRAs became the most successful savings program
in the U.S., drawing in more than $250 billion and 13 million new participants
by 1985.

Sweeping tax reforms in 1986, however, changed all that. As it stands now,
the full deduction only applies to individuals who earn less than $25,000,
married couples who earn less than $40,000 and people without employer-sponsored
retirement plans. The result of this congressional tinkering: the number of IRA
contributors declined dramatically, from 16.2 million in 1985 to 4.2 million in
1992.

Legislators are now taking a closer look at expanding the accessibility of
IRAs once again. Several proposals are on the table: (1) the Republicans'
"Contract with America" includes the American Dream Savings Account, a type of
IRA; (2) President Clinton has proposed expanding eligibility by raising income
limits; and (3) several congressional representatives have introduced
legislation to restore the universal availability of a fully tax-deductible IRA.

We enthusiastically support restoring IRAs to their original luster. Not only
will it provide a tax break to middle-income Americans, but it will go a long
way toward raising the nation's dangerously low personal savings rate, which is
the lowest of any major industrialized country. There's an increasing awareness
that Social Security and pension plans will no longer provide for the retirement
needs of middle-income Americans. Increasing IRA accessibility for more working
individuals and families is one of the most sensible ways to help Americans take
responsibility for their future financial needs. We urge you to support the
expanded IRA by contacting your congressional representative or senator.

Sincerely,

/s/Edward J. Boudreau, Jr.

EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER

2
<PAGE> 41

BY BENJAMIN J. WILLIAMS JR., PORTFOLIO MANAGER

JOHN HANCOCK
GLOBAL Rx FUND

Death of health-care reform
---------------------------
revives health-care stocks
--------------------------

Despite the inability of Congress to institute a plan for health-care reform,
the intense scrutiny of the health-care system has created a momentum of change.
Instead of waiting for the government's dose of reform, the industry has
started to prescribe its own treatment. Cost-cutting and efficiency gains are
the medicine of choice.
Comprehensive government-led reform appears to be less of a threat now,
especially with the switch in Congress to Republican control. Between Medicare
and Medicaid, however, the government remains the largest single payer of
health-care costs. As a result, it will have to bring down costs somehow. Rather
than slashing spending in these two programs, we believe the government will try
to reduce costs by providing incentives for participants to enter HMOs.
The death of comprehensive reform, several surges in takeover and merger
activity and strong industry fundamentals propelled health-care stocks during
the fall of 1994. Considering the group's strong run, it wasn't altogether
surprising that health-care stocks paused to catch their breath from September
to December.
By early January, however, the group began another advance that lasted
through February. Setting the stage for the rally were strong sales and earnings
growth, a shift in investor

[PHOTO - SEE APPENDIX]
BENJAMIN J. WILLIAMS, JR., PORTFOLIO MANAGER

[CAPTION]
"...strong industry fundamentals propelled health-care stocks..."

<PAGE> 42

John Hancock Funds - Global Rx Fund

FUND PERFORMANCE

[CHART- SEE APPENDIX]

For the six months ended February 28, 1995
<TABLE>
<CAPTION>

<S> <C>
John Hancock Global Rx Fund: Class A 12.48%
John Hancock Global Rx Fund: Class B 12.03%
Average health-care biotechnology fund 6.33%

</TABLE>

Total returns for John Hancock Global Rx Fund are at net asset value with all
distributions reinvested. The average health-care/biotechnology fund is tracked
by Lipper Analytical Services.(1) See page 6 for historical performance
information.

sentiment from cyclical or economically sensitive, stocks to growth stocks, and
yet another round of takeover activity.

STOCK SELECTION KEY TO ABOVE-AVERAGE GAINS
For the six months ended February 28, 1995, John Hancock Global Rx Fund's Class
A and Class B shares had total returns of 12.48% and 12.03%, respectively, at
net asset value. By comparison, the average health-care/ biotechnology fund
gained 6.33%, according to Lipper Analytical Services.(1) This performance
placed the Fund's A and B shares second and third, respectively, out of 16
health-care/biotechnology funds during the period.

SCORECARD

[CHART - SEE APPENDIX]

INVESTMENT RECENT PERFORMANCE...AND WHAT'S BEHIND THE NUMBERS
- ----------------------------------------------------------------------------------
<S> <C>
Healthsource, Inc. Strong enrollment growth
- ----------------------------------------------------------------------------------
Steris Corp. Successful new product cycle
- ----------------------------------------------------------------------------------
Value Health, Inc. Rumored takeover fails to materialize
- ----------------------------------------------------------------------------------
</TABLE>

See "Schedule of Investments." Investment holdings are subject to change.

The Fund's strong performance can be attributed to several factors. First,
not only being in the right segments of the industry, but also in the right
stocks helped considerably. HMOs, which totaled 19% of the Fund's
investments, were our biggest winners. The group continued to benefit from
the industry's trend toward cost containment. Healthsource, Inc. and Coventry
Corp. -- two of our largest HMO holdings -- rose 32% and 26%, respectively,
during the period. Both companies are rapidly increasing their patient
enrollment and growing earnings more than 25% a year.
Second, some of our holdings were acquired, and those acquisitions boosted
their stock prices. Salick Health Care, Inc., for example, which provides
comprehensive care for cancer patients from diagnosis to treatment, was acquired
by Zeneca Group, PLC., a U.K.-based pharmaceutical company. Buying Salick helps
Zeneca diversify out of its traditional pharmaceutical business, while giving it
a strong foothold in the total disease management arena.
One note of caution, though. While we believe that consolidation will
continue to be a driving force in the industry, we generally don't speculate on
takeovers. Our philosophy is to find fundamentally attractive companies. That
way, if a rumored or proposed takeover never materializes, or if takeover
activity slows, we have a good set of fundamentals to fall back on.
A case in point is Value Health, Inc. Late last summer, after two other
pharmacy benefit management companies were acquired, Value Health soared as
rumors circulated that the company would be acquired by a large pharmaceutical
firm. But when the takeover failed

[CAPTION]
"HMOs ... were our biggest winners."

4
<PAGE> 43
John Hancock Funds - Global Rx Fund

PORTFOLIO DIVERSIFICATION

[CHART - SEE APPENDIX]

<TABLE>

<S> <C>
Drugs/Services 16%
Biotechnology 3%
Alternate-Site Care 14%
Hospital/Physician Management 13%
Nursing Homes 4%
HMO/Managed-Care 19%
Medical Devices/Products/Supplies 17%
Software/Information Services 9%
Short-Term Investments and Other 5%
</TABLE>

As a percentage of net assets on February 28, 1995

to materialize, the stock dropped. It's down nearly 25% in the last six months.
Despite that, we continue to like the stock. Value Health is not only one of the
leading pharmacy benefit management firms in the U.S., but it also has an
excellent management team and strong earnings prospects.
Finally, we generally avoided smaller biotechnology companies.
Disappointments in clinical trials, failure to gain FDA approval for new
products and long-term financing problems made life difficult for these
companies. What's more, some high-profile investors were forced to liquidate
their biotech holdings, putting additional pressure on the group.

STRATEGY/OUTLOOK
During the next year, we'll maintain our disciplined strategy of targeting
companies that will benefit from the long-term trends we see shaping the
industry, including consolidation and cost containment. Also, we're likely to
continue paring back the number of holdings in the Fund -- a process we began in
1994. In particular, we may reduce our HMO holdings since we have overweighted
them in the portfolio and the stocks are starting to look fully priced. Going
forward, we'll most likely look for new opportunities elsewhere, perhaps in
smaller, rapidly growing health-care device/ product companies.
Health-care companies attempting to find economies of scale will set the
stage for continued takeover activity. But as we mentioned, we'll concentrate on
buying companies with strong fundamentals, regardless of their takeover
prospects. Furthermore, we will continue to evaluate both the prices paid and
how the acquisitions fit financially and strategically for acquirers. We're
skeptical of acquiring companies that try to rationalize dilutive acquisitions.
Finally, a slowing economy should help health-care stocks. Their rapid
earnings growth should make them extremely attractive to investors, especially
on a relative basis to cyclical stocks. But regardless of economic developments,
the earnings picture for the companies we favor is bright. In 1994, health-care
stocks were, to some extent, influenced by takeover activity and investors'
preference for the cheapest names in the sector. As mentioned above, takeover
activity is likely to continue. But in our view, fundamentals -- particularly
earnings growth -- will once again be the primary engine driving health-care
stocks. And since we anticipate that our health-care companies will turn in
average earnings growth of roughly 15% to 30% in 1995, we believe that's good
news for the Fund.

- ----------------

(1) Figures from Lipper Analytical Services include reinvested distributions and
do not take into account sales charges. Actual load-adjusted performance
would be different.

[CAPTION]

"...fundamentals ... will once again be the primary engine driving health-care
stocks."

5
<PAGE> 44

NOTES TO PERFORMANCE INFORMATION

John Hancock Funds - Global Rx Fund

In accordance with the reporting requirements of the Securities and Exchange
Commission, the following data are supplied for the period ended December 31,
1994 with all distributions reinvested in shares. The average annualized total
returns for Class A shares for the 1-year period and since inception on October
1, 1991 were 3.44% and 16.86%, respectively, and reflect payment of the maximum
sales charge of 5.00%. Total return (not annualized) since inception on March 7,
1994 for Class B shares was (4.54%) and reflects the applicable contingent
deferred sales charge (maximum contingent deferred sales charge of 5% and
declines to 0% over six years). For Class A shares different sales charges were
in effect prior to January 1992 and are not reflected in the performance data.
All performance data shown represent past performance and should not be
considered indicative of future performance. Returns and principal values of
Fund investments will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Performance is affected by a
12b-1 plan, which commenced on October 1, 1991 and March 7, 1994 for Class A and
Class B shares, respectively. International investing involves special risks
such as currency fluctuations, political risks and differences in accounting and
financial reporting. See the prospectus for risks associated with sector
investing.

6
<PAGE> 45

FINANCIAL STATEMENTS

John Hancock Funds - Global Rx Fund

STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
<S> <C>
ASSETS:
Investments at value - Note C:
Common stocks, warrants and units
(cost - $17,075,304)............................ $23,624,139
Joint repurchase agreement (cost - $787,000)...... 787,000
-----------
24,411,139
Cash................................................ 777
Receivable for shares sold.......................... 78,845
Receivable for investments sold..................... 274,160
Interest receivable................................. 133
Dividends receivable................................ 3,740
Foreign tax receivable.............................. 454
Other assets........................................ 179
Deferred organization expenses - Note A............. 13,039
-----------
Total Assets..................... 24,782,466
-------------------------------------------------
LIABILITIES:
Payable for investments purchased................... 573,359
Payable for shares repurchased...................... 19,589
Payable to John Hancock Advisers, Inc. and
affiliates - Note B............................... 27,118
Accounts payable and accrued expenses............... 59,089
-----------
Total Liabilities................ 679,155
-------------------------------------------------
NET ASSETS:
Capital paid-in..................................... 17,956,978
Accumulated net realized loss on investments and
foreign currency transactions..................... ( 178,463)
Net unrealized appreciation of investments and
foreign currency transactions..................... 6,548,911
Accumulated net investment loss..................... ( 224,115)
-----------
Net Assets....................... $24,103,311
=================================================
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, respectively)
Class A - $20,947,831 / 1,128,167.................. $ 18.57
===================================================================
Class B - $3,155,480 / 171,156..................... $ 18.44
===================================================================
MAXIMUM OFFERING PRICE PER SHARE *
Class A - ($18.57 x 105.26%)....................... $ 19.55
===================================================================
</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 FEBRUARY 28, 1995. YOU'LL
ALSO FIND THE NET ASSET VALUE AND THE MAXIMUM OFFERING PRICE PER SHARE AS OF
THAT DATE.

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.

STATEMENT OF OPERATIONS
Six months ended February 28, 1995 (Unaudited)
<TABLE>
<CAPTION>

<S> <C>
INVESTMENT INCOME:
Interest............................................... $ 44,898
Dividends (net of foreign withholding taxes of $184)... 12,968
---------
57,866
---------
Expenses:
Investment management fee - Note B................... 84,333
Transfer agent fee - Note B
Class A............................................. 40,222
Class B............................................. 5,268
Distribution/service fee - Note B
Class A............................................. 28,693
Class B............................................. 9,773
Legal fees........................................... 45,843
Custodian fee........................................ 22,179
Registration and filing fees......................... 15,097
Auditing fee......................................... 9,801
Advisory board fee - Note B.......................... 9,509
Printing............................................. 5,726
Organization expense................................. 4,059
Trustees' fees....................................... 814
Miscellaneous........................................ 664
---------
Total Expenses...................... 281,981
------------------------------------------------
Net Investment Loss................. ( 224,115)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments sold.................. 801,093
Net realized loss on foreign currency transactions..... ( 3,139)
Change in net unrealized appreciation/depreciation of
investments and foreign currency transactions........ 2,006,105
---------
Net Realized and Unrealized Gain
on Investments and Foreign
Currency Transactions............... 2,804,059
------------------------------------------------
Net Increase in Net Assets
Resulting from Operations........... $2,579,944
================================================
</TABLE>

See notes to financial statements.

7
<PAGE> 46

FINANCIAL STATEMENTS
John Hancock Funds - Global Rx Fund

STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>

SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1995 AUGUST 31,
(UNAUDITED) 1994
----------------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss...................................................................... ($ 224,115) ($ 366,484)
Net realized gain (loss) on investments sold and foreign currency transactions........... 797,954 ( 278,198)
Change in net unrealized appreciation/depreciation of investments and foreign
currency transactions.................................................................. 2,006,105 4,253,495
---------- ----------
Net Increase in Net Assets Resulting from Operations................................... 2,579,944 3,608,813
---------- ----------

FROM FUND SHARE TRANSACTIONS -- NET*...................................................... 1,809,759 457,678
---------- ----------

NET ASSETS:
Beginning of period...................................................................... 19,713,608 15,647,117
---------- ----------
End of period (including accumulated net investment loss of $224,115 and none, respectively) $24,103,311 $19,713,608
========== ==========
</TABLE>

* ANALYSIS OF FUND SHARE TRANSACTIONS:
<TABLE>
<CAPTION>

SIX MONTHS ENDED
FEBRUARY 28, 1995 YEAR ENDED AUGUST 31,
(UNAUDITED) 1994
--------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
------- --------- ---------- ----------

<S> <C> <C> <C> <C>
CLASS A

Shares sold......................................................... 145,086 $2,517,471 476,656 $ 7,537,387
Less shares repurchased............................................. (145,862) ( 2,522,522) ( 517,274) ( 8,116,676)
------- --------- ---------- ----------
Net decrease........................................................ ( 776) ( $ 5,051) ( 40,618) ( $ 579,289)
======= ========= ========== ==========

CLASS B **

Shares sold......................................................... 142,075 $2,445,667 67,168 $ 1,071,145
Less shares repurchased............................................. ( 35,965) ( 630,857) ( 2,122) ( 34,178)
------- --------- ---------- ----------
Net increase........................................................ 106,110 $1,814,810 65,046 $ 1,036,967
======= ========= ========== ==========
</TABLE>

** Class B shares commenced operations on March 7, 1994.

THE STATEMENT OF CHANGES IN NET ASSETS SHOWS HOW THE VALUE OF THE FUND'S NET
ASSETS HAS CHANGED SINCE THE END OF THE PREVIOUS PERIOD. THE DIFFERENCE REFLECTS
EARNINGS LESS EXPENSES, ANY INVESTMENT AND FOREIGN CURRENCY GAINS AND LOSSES,
AND ANY INCREASE OR DECREASE IN MONEY SHAREHOLDERS INVESTED IN THE FUND. THE
FOOTNOTE ILLUSTRATES THE NUMBER OF FUND SHARES SOLD AND REDEEMED DURING THE LAST
TWO PERIODS, ALONG WITH THE CORRESPONDING DOLLAR VALUE.

See notes to financial statements.

<PAGE> 47
FINANCIAL STATEMENTS

John Hancock Funds - Global Rx Fund

FINANCIAL HIGHLIGHTS

Selected data for a share of beneficial interest outstanding throughout the
periods indicated, investment returns, key ratios and supplemental data are as
follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
OCTOBER 1, 1991
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS)
FEBRUARY 28, 1995 YEAR ENDED AUGUST 31, TO AUGUST 31,
----------------- --------------------- ---------------
(UNAUDITED) 1994 1993 1992
----------- ------- ------- ---------------
<S> <C> <C> <C> <C>
CLASS A
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Year............................... $ 16.51 $ 13.38 $ 13.34 $ 10.00
------- ------- ------- -------
Net Investment Loss.............................................. (0.17) (0.32) (0.23) (0.03)
Net Realized and Unrealized Gain on Investments and Foreign
Currency Transactions........................................... 2.23 3.45 0.27 3.37
------- ------- ------- -------
Total from Investment Operations............................... 2.06 3.13 0.04 3.34
------- ------- ------- -------
Net Asset Value, End of Year..................................... $ 18.57 $ 16.51 $ 13.38 $ 13.34
======= ======= ======= =======
Total Investment Return at Net Asset Value...................... 12.48%(e) 23.39% 0.30% 33.40%(e)
Total Adjusted Investment Return at Net Asset Value (d)......... -- -- 0.04% 32.11%(e)

RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)........................ $20,948 $18,643 $15,647 $14,702
Ratio of Expenses to Average Net Assets**........................ 2.58%* 2.55% 2.50% 1.98%*
Ratio of Adjusted Expenses to Average Net Assets (d)............. -- -- 2.76% 3.39%*
Ratio of Net Investment Loss to Average Net Assets............... (2.03%)* (2.01%) (1.67%) (0.51%)*
Ratio of Adjusted Net Investment Loss to Average Net Assets (d).. -- -- (1.93%) (1.92%)
Portfolio Turnover Rate.......................................... 24% 52% 93% 48%
**Expense Reimbursement Per Share................................ -- -- $ 0.035 $ 0.085

</TABLE>

THE FINANCIAL HIGHLIGHTS SUMMARIZES THE IMPACT OF THE FOLLOWING FACTORS ON A
SINGLE SHARE FOR THE PERIOD INDICATED: THE NET INVESTMENT INCOME (LOSS), GAINS
(LOSSES), 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.

<PAGE> 48

FINANCIAL STATEMENTS

John Hancock Funds - Global Rx Fund

Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

PERIOD
SIX MONTHS ENDED ENDED
FEBRUARY 28, 1995 AUGUST 31,
----------------- ----------
(UNAUDITED) 1994
----------------- ----------
<S> <C> <C>
CLASS B**
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period........................................................ $ 16.46 $ 17.29(a)
-------- -------
Net Investment Loss......................................................................... (0.25)(b) (0.17)(b)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions.... 2.23 (0.66)(c)
-------- -------
Total from Investment Operations.......................................................... 1.98 (0.83)
-------- -------
Net Asset Value, End of Period.............................................................. $ 18.44 $ 16.46
======== =======
Total Investment Return at Net Asset Value.................................................. 12.03%(e) (4.80%)(e)

RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted)................................................... $ 3,155 $ 1,071
Ratio of Expenses to Average Net Assets..................................................... 3.40%* 3.34%*
Ratio of Net Investment Loss to Average Net Assets.......................................... (2.91%)* (2.65%)*
Portfolio Turnover Rate..................................................................... 24% 52%

</TABLE>

* On an annualized basis.
** Class B shares commenced operations on March 7, 1994.
(a) Initial price at commencement of operations.
(b) On average month end shares outstanding.
(c) May not accord to amounts shown elsewhere in the financial statements.
(d) On an unreimbursed basis without expense reduction.
(e) Not annualized.

SEE NOTES TO FINANCIAL STATEMENTS.

<PAGE> 49

FINANCIAL STATEMENTS

John Hancock Funds - Global Rx Fund

SCHEDULE OF INVESTMENTS
February 28, 1995 (Unaudited)
- -------------------------------------------------------------------------------------
ISSUER, DESCRIPTION NUMBER OF SHARES MARKET VALUE
- ------------------- ---------------- ------------
<S> <C> <C>
COMMON STOCKS
BIOMEDICS - GENETICS (0.42%)
Phoenix International Life Sciences, Inc.**...... 20,000* $ 100,466
-----------
DRUGS - BIOTECHNOLOGY (2.72%)

Biota Holdings Ltd.(Australia)** ................ 75,000 93,037
IDEXX Laboratories, Inc.**....................... 15,000 562,500
-----------
655,537
-----------
DRUGS - GENERIC (5.64%)
Dura Pharmaceuticals, Inc.**..................... 10,000* 135,000
Forest Laboratories, Inc.(Class A) American
Depository Receipt (ADR)**..................... 8,000 406,000
Fujisawa Pharmaceutical Co. (Japan).............. 40,000* 455,652
Teva Pharmaceutical Industries Ltd.
(ADR) (Israel)................................. 14,000 362,250
-----------
1,358,902
-----------
DRUGS - MAJOR (9.68%)
Astra AB (Ser B) (Sweden)........................ 20,000 495,266
Johnson & Johnson................................ 4,000 227,000
Pfizer Inc....................................... 4,000 331,000
Roche Holding AG (Switzerland)................... 100 554,790
Sandoz AG (ADR) (Switzerland).................... 12,000 343,226
Schering AG (Germany)............................ 500 383,057
-----------
2,334,339
-----------
HEALTHCARE - ALTERNATE SITE (14.11%)
Assisted Living Concepts Inc.**.................. 15,000* 123,750
HEALTHSOUTH Rehabilitation Corp.** 35,000 1,408,750
Integrated Health Services, Inc. ................ 5,000 191,250
Lincare Holdings, Inc.**......................... 20,000 545,000
Mariner Health Group, Inc.**..................... 16,500 284,625
Renal Treatment Centers, Inc.**.................. 20,000 425,000
Salick Health Care, Inc.**....................... 12,000 421,500
-----------
3,399,875
-----------
HEALTHCARE - COST CONTAINMENT (1.55%)
Value Health, Inc.**............................. 10,000 372,500
-----------
HEALTHCARE - HMO (19.49%)

Coventry Corp.**................................. 30,000 806,250
Healthsource, Inc.**............................. 35,000 1,522,500

Humana, Inc.**................................... 60,000 1,425,000
Maxicare Health Plans, Inc.**.................... 10,000* 161,250
Physician Corp. of America **.................... 15,000 326,250
Sierra Health Services, Inc.**................... 15,000 455,625
-----------
4,696,875
-----------
</TABLE>

The Schedule of Investments is a complete list of all securities owned by Global
Rx Fund on February 28, 1995. It's divided into three main categories: common
stocks, warrants and units, and short-term investments. The common stocks and
warrants and units are further broken down by industry groups. Short-term
investments, which represent the Fund's "cash" position, are listed last.

<TABLE>
<CAPTION>
ISSUER, DESCRIPTION NUMBER OF SHARES MARKET VALUE
- ------------------- ---------------- ------------
<S> <C> <C>
HEALTHCARE - SOFTWARE/SERVICES (9.36%)
Cerner Corp.**................................... 10,000 $ 462,500
Future Healthcare, Inc.**........................ 10,000* 227,500
HBO & Co......................................... 20,000 765,000
HCIA, Inc.**..................................... 2,800* 51,800
Health Management Systems, Inc.**................ 10,000 357,500
PHAMIS, Inc.**................................... 20,000* 392,500

----------
2,256,800
----------
HOSPITAL MANAGEMENT (13.32%)
Community Health Systems, Inc.**................. 50,000 1,393,750
Health Management Associates, Inc.
(Class A) **................................... 22,500 599,063
MedPartners, Inc.**.............................. 20,000* 340,000
PhyCor, Inc.**................................... 22,500 680,625
Physician Reliance Network, Inc.** .............. 10,000* 197,500
----------
3,210,938
----------
MEDICAL - DENTAL (8.18%)
Cardinal Health, Inc............................. 30,000* 1,485,000
Omnicare, Inc.................................... 10,000* 486,250
----------
1,971,250
----------
MEDICAL DEVICES AND PRODUCTS (9.14%)
Boston Scientific Corp.**........................ 27,076* 585,519
MediSense, Inc.**................................ 20,000* 407,500
Orthofix International N.V. (Netherlands)**...... 20,000 275,000
Steris Corp.**................................... 10,000 330,000
Stryker Corp..................................... 6,000 261,000
Sunrise Medical, Inc.**.......................... 10,000 345,000
----------
2,204,019
----------
NURSING HOMES (3.77%)
Health Care and Retirement Corp.**............... 15,000 465,000
Manor Care, Inc.................................. 15,000 444,375
----------
909,375
----------

</TABLE>

See notes to financial statements.

<PAGE> 50

FINANCIAL STATEMENTS

John Hancock Funds - Global Rx Fund

<TABLE>
<CAPTION>
ISSUER, DESCRIPTION NUMBER OF SHARES MARKET VALUE
- ------------------- ---------------- ------------
<S> <C> <C>
RETAIL - DRUG STORES (0.54%)
Matsumotokiyoshi (Japan).......................... 6,000 $ 130,482
-----------
TOTAL COMMON STOCKS
(Cost $17,045,052) (97.92%) 23,601,358
------ -----------

NUMBER OF
WARRANTS, UNITS

WARRANTS AND UNITS
DRUGS - BIOTECHNOLOGY (0.08%)
Oxigene, Inc. (Warrants)**....................... 15,000 18,750
-----------
DRUGS - GENERIC (0.01%)
Therapeutic Discovery Corp. (Units)**............ 750 4,031
-----------
TOTAL WARRANTS AND UNITS
(Cost $30,252) (0.09%) 22,781
------ -----------
TOTAL COMMON STOCKS,
WARRANTS AND UNITS
(Cost $17,075,304) (98.01%) 23,624,139
------ -----------

</TABLE>

<TABLE>
<CAPTION>
INTEREST PAR VALUE
ISSUER, DESCRIPTION RATE (000'S OMITTED) MARKET VALUE
- ------------------- -------- --------------- ------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
Joint Repurchase Agreement (3.27%)
Investment in a joint repurchase agreement
transaction with Bankers Trust Co. -
Dated 02-28-95, Due 03-01-95
(Secured by US Treasury Bond,
12.00% due 05-15-05 and US
Treasury Note, 6.00% due 06-30-96)
Note A......................................... 6.080% $ 787 $ 787,000
-----------
TOTAL SHORT-TERM INVESTMENTS (3.27%) 787,000
------ -----------
TOTAL INVESTMENTS (101.28%) $24,411,139
======= ===========

</TABLE>

* Securities, other than short-term investments, newly added to the portfolio
during the six months ended February 28, 1995.

** Non-income producing security.

The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Fund.

SEE NOTES TO FINANCIAL STATEMENTS.
12

<PAGE> 51

FINANCIAL STATEMENTS

John Hancock Funds - Global Rx Fund

PORTFOLIO CONCENTRATION
- --------------------------------------------------------------------------------
THE GLOBAL RX FUND INVESTS PRIMARILY IN EQUITY SECURITIES OF ISSUERS IN THE
HEALTH CARE INDUSTRY IN THE UNITED STATES AND ABROAD. THE CONCENTRATION OF
INVESTMENTS BY INDUSTRY CATEGORY FOR INDIVIDUAL SECURITIES HELD BY THE FUND IS
SHOWN IN THE SCHEDULE OF INVESTMENTS. IN ADDITION, CONCENTRATION OF INVESTMENTS
CAN BE AGGREGATED BY VARIOUS COUNTRIES. THE TABLE BELOW SHOWS THE PERCENTAGE OF
THE FUND'S INVESTMENTS AT FEBRUARY 28, 1995 ASSIGNED TO THE VARIOUS COUNTRY
CATEGORIES.

MARKET VALUE AS A
COUNTRY DIVERSIFICATION % OF NET ASSETS
- ----------------------- -----------------
<S> <C>
Australia..................................................................... 0.39%
Israel........................................................................ 1.50
Germany....................................................................... 1.59
Japan......................................................................... 2.43
Netherlands................................................................... 1.14
Sweden........................................................................ 2.05
Switzerland................................................................... 3.73
United States................................................................. 88.45
------
TOTAL INVESTMENTS 101.28%
======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

<PAGE> 52

Notes to Financial Statements
John Hancock Funds - Global Rx Fund

(UNAUDITED)
NOTE A --
ACCOUNTING POLICIES

The Trustees have authorized the issuance of multiple 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, redemptions, 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 terms of
a distribution plan, have exclusive voting rights to 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 large 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.

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. For federal income tax purposes, the Fund has $976,417 of capital loss
carryforward available, to the extent provided by regulations, to offset future
net realized capital gains. To the extent that such carryforwards are used by
the Fund, no capital gain distributions will be made. The carryforwards expires
as follows: August 31, 2001 - $485,402 and August 31, 2002 - $491,015. For
Federal income tax purposes, net currency exchange gains and losses from sales
of foreign debt securities may be treated as ordinary income even though such
items are gains and losses for accounting purposes.

DIVIDENDS, DISTRIBUTIONS AND INTEREST Dividend income on investment securities
is recorded on the ex-dividend date, or, in the case of some foreign securities,
on the date thereafter when the Fund is made aware of the dividend. Interest
income on investment securities is recorded on the accrual basis.

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.

14
<PAGE> 53
Notes to Financial Statements

John Hancock Funds - Global Rx Fund

EXPENSES The majority of the expenses of the Trust are directly identifiable to
an individual Fund. Expenses which are not 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 calculated at the Fund level and allocated daily to each class of
shares based on the appropriate net assets of the respective classes.
Distribution/service fees 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.

There were no open forward foreign currency contracts at February 28, 1995.

FOREIGN CURRENCY TRANSLATION 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. 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 at fiscal
year end, resulting from changes in the exchange rate.

OPTIONS Listed options are valued at the last quoted sales price on the exchange
on which they are primarily traded. Over-the-counter options are valued at the
mean between the last bid and asked prices. Upon the writing of a call or put
option, an amount equal to the premium received by the Fund is included in the
Statement of Assets and Liabilities as an asset and corresponding liability. The
amount of the liability is subsequently marked-to-market to reflect the current
market value of the written option.

The Fund may use options contracts to manage its exposure to the stock
market. Writing puts and buying calls tend to increase the Fund's exposure to
the underlying instrument and buying puts and writing calls tend to decrease the
Fund's exposure to the underlying instrument, or hedge other Fund investments.

The maximum exposure to loss for any purchased options is limited to the
premium initially paid for the option. In all other cases, the face (or
"notional") amount of each contract at value reflects the maximum exposure of
the Fund in these contracts, but the actual exposure is limited to the change in
value of the contract over the period the contract remains open.

Risks may also arise if counterparties do not perform under the contracts'
terms, or if the Fund is unable to offset a contract with a counterparty on a
timely basis ("liquidity risk"). Exchange-traded options have minimal credit
risk as the exchanges act as counterparties to each transaction, and only
present liquidity risk in highly

15
<PAGE> 54

Notes to Financial Statements
John Hancock Funds - Global Rx Fund

unusual market conditions. To minimize credit and liquidity risks in
over-the-counter option contracts, the Fund continuously monitors the
creditworthiness of all its counterparties.

At any particular time, except for purchased options, market or credit risk
may involve amounts in excess of those reflected in the Fund's period-end
Statement of Assets and Liabilities.

There were no written option transactions for the period ended February 28,
1995.

FINANCIAL FUTURES CONTRACTS The Fund may buy and sell financial futures
contracts for speculative purposes and/or to hedge against the effects of
fluctuations in interest rates, currency exchange rates and other market
conditions. At the time the Fund enters into a financial futures contract, it is
required to deposit with its custodian a specified amount of cash or U.S.
government securities, known as "initial margin", equal to a certain percentage
of the value of the financial futures contract being traded. Each day, the
futures contract is valued at the official settlement price of the board of
trade or U.S. commodities exchange. Subsequent payments, known as "variation
margin", to and from the broker are made on a daily basis as the market price of
the financial futures contract fluctuates. Daily variation margin adjustments,
arising from this "mark to market", are recorded by the Fund as unrealized gains
or losses.

When the contracts are closed, the Fund recognizes a gain or loss. Risks 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 contracts may not
correlate with changes in the value of the underlying securities.

For Federal income tax purposes, the amount, character and timing of the
Fund's gains and/or losses can be affected as a result of futures contracts.

At February 28, 1995, there were no open positions in financial futures
contracts.

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 commenced with the investment operations of
the Fund.

NOTE B --
MANAGEMENT FEE AND TRANSACTIONS WITH
AFFILIATES AND OTHERS

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.

16
<PAGE> 55

Notes to Financial Statements
John Hancock Funds - Global Rx Fund

("Tucker Anthony") and Sutro & Co., Inc. ("Sutro"). Distributors is a
wholly-owned subsidiary of The Berkeley Financial Group. 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, which are
broker-dealers.

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 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 such 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 January 1, 1995, Investor Services was known as John
Hancock Fund Services, Inc. Effective January 1, 1995, the Fund pays transfer
agent fees based on transaction volume and the number of shareholder accounts.
Prior to January 1, 1995, the Fund paid a monthly transfer agent fee equivalent,
on an annual basis, to 0.40% and 0.42% of the Fund's average daily net asset
value of Class A and Class B shares of the Fund, respectively, plus out of
pocket expenses incurred by Fund Services on behalf of the Fund for proxy
mailings.

The Fund has an independent advisory board composed of scientific and medical
experts who provide the investment officers of the Fund with advice and
consultation on health care developments, for which the Fund pays the advisory
board a fee.

Messrs. Edward J. Boudreau, Jr., and Richard S. Scipione are directors and/or
officers of the Adviser, and/or 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 with regard to 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 short-term
securities, during the period ended February 28, 1995, aggregated $8,254,201 and
$4,822,088, respectively.

The cost of investments owned at February 28, 1995 (including the short-term
investments) for federal income tax purposes was $17,862,304. Gross unrealized
appreciation and depreciation of investments aggregated $6,738,478 and $189,643,
respectively, resulting in net unrealized appreciation of $6,548,835.

17
<PAGE> 56

Notes
John Hancock Funds - Global Rx Fund

Effective March 15, 1995, participant directed defined contribution plans with
at least 100 eligible employees at the inception of the Fund account may
purchase Class A shares of the Fund without an initial sales charge, but if the
shares are redeemed within 12 months after the end of the calendar year in which
the purchase was made, a contingent deferred sales charge will be imposed at the
rate for Class A shares described in the prospectus.

18
<PAGE> 57

Notes
John Hancock Funds - Global Rx Fund

19
<PAGE> 58
--------------
Bulk Rate
[JOHN HANCOCK FUNDS LOGO] U.S. Postage
A Global Investment Management Firm PAID
101 HUNTINGTON AVENUE BOSTON, MA 02199-7603 Brockton, MA
Permit No. 582
--------------

This report is for the information of shareholders of the John Hancock Global
Rx Fund. It may be used as sales literature when preceded or accompanied by the
current prospectus, which details charges, investment objectives and operating
policies.

[SEE APPENDIX]

(LOGO) Printed on Recycled Paper JH 280SA 2/95

<PAGE> 59
APPENDIX

JOHN HANCOCK GLOBAL RX FUND

Page 2
A 1 1/4" x 1" photo of Edward J. Boudreau Jr., Chairman and Chief Executive
Officer, flush right, next to second paragraph.

Page 3
A 2" x 3" photo of Benjamin J. Williams, Jr. at bottom right. Caption reads:
"Benjamin J. Williams, Jr., Portfolio Manager."

Page 4
Bar chart with heading " Fund Performance" at top of left hand column. Under the
heading is the footnote: "For the six months ended February 28, 1995." The chart
is scaled in increments of 5% from bottom to top, with 15% at the top and 0% at
the bottom. Within the chart, there are three solid bars. The first represents
the 12.48% total return for John Hancock Global Rx Fund: Class A. The second
represents the 12.03% total return for John Hancock Global Rx Fund: Class B. The
third represents the 6.33% total return for the average
health-care/biotechnology fund. The footnote below states: "Total returns for
John Hancock Global Rx Fund are at net asset value with all distributions
reinvested. The average health-care/biotechnology fund is tracked by Lipper
Analytical Services. (1) See page 6 for historical performance information."

Table entitled "Scorecard" at bottom of 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
Healthsource, Inc. followed by an up arrow and the phrase "Strong enrollment
growth." The second listing is Steris Corp. followed by an up arrow and the
phrase "Successful new product cycle." The third listing is Value Health, Inc.
followed by a down arrow and the phrase "Rumored takeover fails to materialize."
Footnote below reads: "See "Schedule of Investments. "Investment holdings are
subject to change."

Page 5
Pie chart with the heading "Portfolio Diversification" at top of left hand
column. The chart is divided into nine sections. Going from left to right:
Hospital/Physician Management 13%; Drugs/Services 16%; Biotechnology 3%;
Alternate-Site Care 14%; HMO/Managed Care 19%; Software/Information Services 9%;
Short-Term Investments and Other 5%; Medical Devices/Products/Supplies 17%; and
Nursing Homes 4%. A footnote below states "As a percentage of net assets on
February 28, 1995."

A recycled logo in lower left hand corner with the caption " Printed on Recycled
Paper."
<PAGE> 60

Global Rx Fund
Class A shares

Line chart with the heading Global Rx 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 Global Rx Fund on October 1, 1991, before sales charge, and is equal to
$18,570 as of February 28, 1995. The second line represents the Global Rx Fund
after sales charge and is equal to $17,635 as of February 28, 1995. The third
line represents the value of the Standard & Poor's 500 Stock Index and is equal
to $13,860* as of February 28, 1995.

Global Rx Fund
Class B shares

Line chart with the heading Global Rx 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 Standard & Poor's 500 Stock Index and
is equal to $10,735* as of February 28, 1995. The second line represents the
value of the hypothetical $10,000 investment made in the Global Rx Fund on March
7, 1994, before contingent deferred sales charge, and is equal to $10,665 as of
February 28, 1995. The third line represents the Global Rx Fund after
contingent deferred sales charge and is equal to $10,165 as of February 28,
1995.

*The Standard & Poor's 500 Stock Index is an unmanaged index that includes 500
widely traded common stocks and is a commonly used measure of stock market
performance.