JOHN HANCOCK TAX-EXEMPT SERIES FUND -
MASSACHUSETTS PORTFOLIO
NEW YORK PORTFOLIO
Supplement to the Prospectus dated January 1, 1996
On May 21, 1996, the Trustees of John Hancock Tax-Exempt Series Fund (the
"Trust") voted to change the Fund's names to John Hancock New York Tax-Free
Income Fund and John Hancock Massachusetts Tax-Free Income Fund effective July
1, 1996.
The INVESTMENT OBJECTIVES AND POLICIES section is supplemented to include the
following:
Options Transactions. The Fund may write listed and over-the-counter covered
call options and covered put options on debt and equity securities, securities
indices and foreign currency to earn income from the premiums received. The Fund
may write listed and over-the-counter covered call and put options on up to 100%
of its net assets. In addition, the Fund may purchase listed and
over-the-counter call and put options on securities, securities indices and
currency. The SEC considers over-the-counter options to be illiquid except under
prescribed conditions which are discussed in detail in the Statement of
Additional Information.
The Fund's ability to use futures contracts and options to hedge or increase
total return successfully will depend on the ability of John Hancock Advisers,
Inc. (the "Adviser") to predict accurately the future direction of securities
prices, interest, rate changes, currency exchange rate fluctuations and other
market factors. There is no assurance that a liquid market for futures and
options will always exist. In addition, the Fund could be prevented from opening
or realizing the benefits of closing out a futures or options position because
of position limits or limits on daily price fluctuations imposed by an exchange.
The Fund may invest in variable rate and floating rate obligations, including
inverse floating rate obligations, on which the interest rate is adjusted at
predesignated periodic intervals or when there is a change in the market rate of
interest on which the interest rate payable on the obligation is met is based.
Options futures contracts and variable and floating rate instruments are
generally considered to be "derivative" instruments because they derive their
value from the performance of an underlying asset, index or other economic
benchmark.
June 24, 1996
0000S-6/96
