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JOHN HANCOCK MONEY MARKET FUND
CLASS S SHARES
PROSPECTUS
SEPTEMBER 12, 1995 AS REVISED DECEMBER 4, 1995
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TABLE OF CONTENTS
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Page
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Expense Information ...................................................... 3
The Fund's Financial Highlights .......................................... 4
Yield Information ........................................................ 6
Investment Objective and Policies ........................................ 6
Organization and Management of the Fund .................................. 8
The Fund's Expenses ...................................................... 9
Dividends and Taxes ...................................................... 10
How to Buy Class S Shares ................................................ 11
Share Price .............................................................. 12
How to Redeem Class S Shares ............................................. 13
Investments, Techniques and Risk Factors ................................. 13
</TABLE>
This Prospectus sets forth the information about Class S shares of John
Hancock Money Market Fund (the "Fund"), a diversified series of John Hancock
Series, Inc. (the "Company"), that you should know before investing. Please read
and retain it for future reference. Class S shares of the Fund are offered
exclusively to investors who maintain brokerage accounts with certain brokers
who offer the Fund's shares as part of a sweep account (the "Selling Broker").
To invest in Class S shares of the Fund, the credit balances in your brokerage
account will be automatically invested or "swept" into the Fund, subject to the
terms of your brokerage account agreement.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT
AGENCY. AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. THERE IS NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.
Additional information about the Fund and the Company has been filed
with the Securities and Exchange Commission (the "SEC"). You can obtain a copy
of the Fund's Statement of Additional Information for Class S shares, dated
September 12, 1995, and incorporated by reference into this Prospectus, free of
charge by writing or telephoning: John Hancock Investor Services Corporation,
P.O. Box 9116, Boston, Massachusetts 02205-9116, 1-800-225-5291 (1-800-554-6713
TDD). If you have any service related questions you should contact your Selling
Broker.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
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EXPENSE INFORMATION
The purpose of the following information is to help you to understand
the various fees and expenses you will bear, directly or indirectly, when you
purchase Class S shares of the Fund. The operating expenses included in the
table and hypothetical example below are based on fees and expenses of the Class
B shares of the Fund for the fiscal year ended October 31, 1994. No Class S
shares were actually outstanding during the period. Actual fees and expenses of
Class S shares in the future may be greater or less than those indicated.
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SHAREHOLDER TRANSACTION EXPENSES
Maximum sales charge imposed on purchases
(as a percentage of offering price) .................................... None
Maximum sales charge imposed on
reinvested dividends ................................................... None
Maximum deferred sales charge ........................................... None
Redemption fee+ ......................................................... None
Exchange fee ............................................................ None
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management fee (net of reduction) ....................................... 0.40%
12b-1 fee* .............................................................. 0.40%
Other expenses** ........................................................ 0.56%
Total Fund operating expenses (net of reduction) ........................ 1.36%
<FN>
+ Redemption by wire fee (currently $4.00) not included.
* The amount of the 12b-1 fee used to cover service expenses will be up
to 0.25% of the Fund's average net assets, and the remaining portion
will be used to cover distribution expenses.
** Other Expenses include transfer agent, legal, audit, custody and other
expenses.
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In addition to the above expenses, the Selling Broker with whom a shareholder
maintains a sweep account may charge an annual administration fee for making the
account available.
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EXAMPLE: 1 YEAR 3 YEARS 5 YEARS 10 YEARS
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You would pay the following expenses
for the indicated period of years on
a hypothetical $1,000 investment,
assuming 5% annual return................. $14 $43 $74 $164
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(This example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown).
Expenses reflect the reduction of the management fee by the Fund's
adviser. The higher fee cannot be reinstated without the Trustees'
consent. Without such a reduction the management fee and total fund
operating expenses would have been estimated as 0.50% and 1.46%,
respectively.
The Fund's payment of a distribution fee may result in a long-term
shareholder indirectly paying more than the economic equivalent of the
maximum front-end sales charge permitted under the National Association of
Securities Dealers, Inc.'s Rules of Fair Practice.
The management and 12b-1 fees referred to above are more fully
explained in this Prospectus under the caption "The Fund's Expenses" and
in the Statement of Additional Information under the captions "Investment
Advisory and Other Services" and "Distribution Contract."
THE FUND'S FINANCIAL HIGHLIGHTS
The information in the following table of financial highlights has
been audited by Ernst & Young LLP, the Fund's independent auditors, whose
unqualified report is included in the Statement of Additional Information.
Class S shares are a new class of shares; no financial highlights exist
for Class S shares. Further information about the performance of the Fund
is contained in the Fund's Annual Report to shareholders, which may be
obtained free of charge by writing or telephoning John Hancock Investor
Services Corporation ("Investor Services") at the address or telephone
number listed on the front page of this Prospectus.
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Selected data for a Class B share outstanding throughout each period is as
follows:
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SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1995 ----------------------
(UNAUDITED)(1) 1994 1993 1992 1991
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Net asset value, beginning
of period.......................... $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... $0.02 0.018 0.009 0.017 0.045
LESS DISTRIBUTIONS
Dividends from net investment
income............................. (0.02) (0.018) (0.009) (0.017) (0.045)
----- ------ ------ ------ ------
Net asset value, end
of period.......................... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total Return(3)..................... 1.88% 1.87% 0.85% 1.73% 4.61%
==== ==== ==== ==== ====
RATIOS AND SUPPLEMENTAL DATA
Ratio of expenses to average
net assets......................... 2.07%* 2.06% 2.44% 2.47% 2.23%
Ratio of expense reduction
to average net assets.............. -- -- -- -- (0.12)%
---- ---- ---- ---- -----
Ratio of net expenses to
average net assets................. 2.07%* 2.06% 2.44% 2.47% 2.11%
==== ==== ==== ==== ====
Ratio of net investment
income to average net
assets............................. 3.76%* 1.97% 0.85% 1.69% 4.45%
Net Assets, end of period
(in thousands)..................... $56,522 $58,366 $31,546 $31,480 $20,763
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YEAR ENDED OCTOBER 31,
---------------------- PERIOD ENDED
1990 1989 1988 OCTOBER 31, 1987(2)
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Net asset value, beginning
of period.......................... $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... 0.061 0.072 0.059 0.0007
LESS DISTRIBUTIONS
Dividends from net investment
income............................. (0.061) (0.072) (0.059) (0.0007)
------- ------- ------ -------
Net asset value, end
of period.......................... $1.00 $1.00 $1.00 $1.00
======= ======= ====== =======
Total Return(3)..................... 6.30% 7.40% 6.06% 0.06%
======= ======= ====== =======
RATIOS AND SUPPLEMENTAL DATA
Ratio of expenses to average
net assets......................... 2.31% 2.59% 2.41% 0.03%
Ratio of expense reduction
to average net assets.............. (0.15)% (0.47)% (0.90)% (0.02)%
------- ------- ------ -------
Ratio of net expenses to
average net assets................. 2.16% 2.12% 1.51% 0.01%
======= ======= ====== =======
Ratio of net investment
income to average net
assets............................. 6.11% 7.16% 6.01% 0.07%
Net Assets, end of period
(in thousands)..................... $21,099 $13,610 $7,692 $2,535
<FN>
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(1) On December 22, 1994, John Hancock Advisers, Inc. became the
investment adviser to the Fund.
(2) Financial highlights, including total return, are for the period from
October 26, 1987 (date of the Fund's initial offering of shares to the
public) to October 31, 1987 and have not been annualized.
(3) Total return does not include the effect of the contingent deferred
sales charge.
* Annualized basis.
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YIELD INFORMATION
Current information on the Fund's annualized yield during a recent
seven-day period may be obtained by calling the Easi-Line at 1-800-338-8080 or a
customer service representative, 1-800-225-5291. For information on how the Fund
calculates its annualized yield see the Statement of Additional Information.
INVESTMENT OBJECTIVE AND POLICIES
THE FUND SEEKS TO PROVIDE MAXIMUM CURRENT INCOME CONSISTENT WITH CAPITAL
PRESERVATION AND LIQUIDITY.
The Fund seeks to provide maximum current income consistent with capital
preservation and liquidity. The Fund's investments will be subject to the market
fluctuations and risks inherent in all securities, and there is no assurance
that the investment objective will always be achieved.
The Fund seeks to achieve its objective by investing in money market
instruments including, but not limited to, U.S. Government, municipal and
foreign governmental securities; obligations of supranational organizations
(e.g., the World Bank and the International Monetary Fund); obligations of U.S.
and foreign banks and other lending institutions; corporate obligations;
repurchase agreements and reverse repurchase agreements. As a fundamental
policy, the Fund may not invest more than 25% of its total assets in obligations
issued by (i) foreign banks and (ii) foreign branches of U.S. banks where John
Hancock Advisers, Inc. (the "Adviser"), the Fund's investment adviser, has
determined that the U.S. bank is not unconditionally responsible for the payment
obligations of the foreign branch. All of the Fund's investments will be
denominated in U.S. dollars.
THE FUND INVESTS ONLY IN HIGH QUALITY SECURITIES BELIEVED TO PRESENT
MINIMAL CREDIT RISKS, UNDER PROCEDURES ADOPTED BY THE BOARD OF DIRECTORS.
At the time the Fund acquires its investments, they will be rated (or
issued by an issuer that is rated with respect to a comparable class of
short-term debt obligations) in one of the two highest rating categories for
short-term debt obligations assigned by at least two nationally recognized
rating organizations (or one rating organization if the obligation was rated by
only one such organization). These high quality securities are divided into
"first tier" and "second tier" securities. First tier securities have received
the highest rating from at least two rating organizations (or one, if only one
has rated the security). Second tier securities have received ratings within the
two highest categories from at least two rating agencies (or one, if
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only one has rated the security), but do not qualify as first tier securities.
The Fund may also purchase obligations that are not rated, but are determined by
the Adviser, based on procedures adopted by the Fund's Board of Directors, to be
of comparable quality to rated first or second tier securities. The Fund may not
purchase any second tier security if, as a result of its purchase (a) more than
5% of its total assets would be invested in second tier securities or (b) more
than 1% of its total assets or $1 million (whichever is greater) would be
invested in the second tier securities of a single issuer. For a description of
the ratings assigned by the rating organizations, see the Statement of
Additional Information.
BY LIMITING THE MATURITY OF ITS INVESTMENTS, THE FUND SEEKS TO LESSEN THE
CHANGES IN THE VALUE OF ITS ASSETS CAUSED BY MARKET FACTORS.
All of the Fund's investments will mature in 397 days or less. The Fund
will maintain an average dollar-weighted portfolio maturity of 90 days or less.
CLASS S SHARES OF THE FUND MAY BE APPROPRIATE FOR A VARIETY OF INVESTMENT
PROGRAMS, WHICH CAN BE LONG-TERM OR SHORT-TERM IN NATURE.
While the Fund is not a substitute for building an investment portfolio
tailored to your investment needs and risk tolerance, the "sweep" feature of the
Class S shares enables you to use the Fund as a high quality, conveniently
liquid money market investment for cash balances in your brokerage account. See
"How to Buy Class S Shares" and "How to Redeem Class S Shares."
Because the Fund is designed to provide liquidity and stability of
capital, as well as automatic investment of free credit balances, it may be
especially suitable if you have short-term investment objectives or are awaiting
an opportune time to invest in the equity and/or bond markets. However, the Fund
may also be appropriate if you are a long-term investor seeking low-risk
investment alternatives which are designed to provide current income.
THE FUND FOLLOWS CERTAIN POLICIES THAT MAY HELP TO REDUCE INVESTMENT RISK.
The Fund has adopted certain investment restrictions that are enumerated
in detail in the Statement of Additional Information, where they are classified
as fundamental or nonfundamental. Those restrictions designated as fundamental
may not be changed without shareholder approval. The Fund's investment objective
and, except as otherwise expressly stated, its investment policies are
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nonfundamental and may be changed by a vote of the Board of Directors without
shareholder approval. Notwithstanding the Fund's fundamental investment
restriction prohibiting investments in other investment companies, the Fund may,
pursuant to an order granted by the SEC, invest in other investment companies in
connection with a deferred compensation plan for the non-interested directors of
the John Hancock funds.
BROKERS ARE CHOSEN ON BEST PRICE AND EXECUTION.
The primary consideration in choosing brokerage firms to carry out the
Fund's transactions is execution at the most favorable prices, taking into
account the broker's professional ability and quality of service. Pursuant to
procedures determined by the Board of Directors, the Adviser may place
securities transactions with brokers affiliated with the Adviser. The brokers
include Tucker Anthony Incorporated, Sutro and Company, Inc. and John Hancock
Distributors, Inc., which are indirectly owned by the John Hancock Mutual Life
Insurance Company (the "Life Company"), which in turn indirectly owns the
Adviser.
See "Investments, Techniques and Risk Factors" for more information about
the Fund's investments.
ORGANIZATION AND MANAGEMENT OF THE FUND
THE BOARD OF DIRECTORS ELECTS OFFICERS AND RETAINS THE INVESTMENT ADVISER
WHO IS RESPONSIBLE FOR THE DAY-TO-DAY OPERATIONS OF THE FUND, SUBJECT TO THE
BOARD OF DIRECTORS' POLICIES AND SUPERVISION.
The Fund is a diversified series of the Company, which is an open-end
management investment company organized as a Maryland corporation in 1987. The
Company reserves the right to create and issue a number of series of shares, or
funds or classes thereof, which are separately managed and have different
investment objectives. The Directors have authorized the issuance of three
classes of shares of the Fund, designated as Class A, Class B and Class S. The
shares of each class represent an interest in the same portfolio of investments
of the Fund. Each class has equal rights as to voting, redemption, dividends and
liquidation. However, each class is subject to different fees and expenses
(which affect performance), has different minimum investment requirements and is
entitled to different services. Also Class A, Class B and Class S shareholders
have exclusive voting rights with respect to their distribution plans. Like
Class S shares, Class A shares are not subject to a sales charge on purchases,
redemptions or reinvested dividends, nor are they subject to deferred sales
charges or an exchange fee. While not subject to a sales charge on purchases or
reinvested dividends, Class B shares are subject
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to a contingent deferred sales charge if redeemed within six years of purchase.
Class A and Class B expenses are identical to those of Class S shares except
that the 12b-1 fees are 0.15% and 1.00% of average daily net assets on Class A
and Class B shares, respectively. Information regarding Class A and Class B
shares of the Fund may be obtained from your Selling Broker or from the Fund by
calling a John Hancock customer service representative at the number on the
front cover of this Prospectus. The Company is not required to and does not
intend to hold annual meetings of shareholders, although special meetings may be
held for such purposes as electing or removing Directors, changing fundamental
policies or approving a management contract. The Fund, under certain
circumstances, will assist in shareholder communications with other
shareholders.
JOHN HANCOCK ADVISERS, INC. ADVISES INVESTMENT COMPANIES HAVING A TOTAL
ASSET VALUE OF MORE THAN $13 BILLION.
The Adviser was organized in 1968 and is a wholly-owned indirect
subsidiary of the Life Company, a financial services company. The Adviser
provides the Fund, and other investment companies in the John Hancock group of
funds, with investment research and portfolio management services. John Hancock
Funds, Inc. ("John Hancock Funds") distributes shares for all of the John
Hancock mutual funds through brokers who have arrangements with John Hancock
Funds. Certain Fund officers are also officers of the Adviser and John Hancock
Funds.
In order to avoid any conflict with portfolio trades for the Fund, the
Adviser and the Fund have adopted extensive restrictions on personal securities
trading by personnel of the Adviser and its affiliates. Some of these
restrictions are: preclearance for all personal trades and a ban on the purchase
of initial public offerings, as well as contributions to specified charities of
profits on securities held for less than 91 days. These restrictions are a
continuation of the basic principle that the interests of the Fund and its
shareholders come first.
THE FUND'S EXPENSES
For managing its investment and business affairs, the Fund pays a monthly
fee to the Adviser based on a stated percentage of the Fund's average daily net
assets. During the fiscal year ended October 31, 1994, the Fund paid advisory
fees in an amount equal to 0.50% of the Fund's average daily net assets to the
Fund's former investment adviser.
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THE FUND PAYS DISTRIBUTION AND SERVICE FEES FOR MARKETING AND
SALES-RELATED SHAREHOLDER SERVICING.
The Class S shareholders have adopted a distribution plan (the "Plan")
pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the "1940
Act"). Under this Plan, the Fund will pay distribution and service fees at an
aggregate annual rate of up to 0.40% of the Class S shares' average daily net
assets. Under the Plan, up to 0.25% is for service expenses and the remaining
amount is for distribution expenses. The distribution fees will be used to
reimburse John Hancock Funds for its distribution expenses, including but not
limited to: (i) initial and ongoing sales compensation to other brokers or
financial service firms who have arrangements with John Hancock Funds and others
(including affiliates of John Hancock Funds) engaged in the sale of Fund shares;
(ii) marketing, promotional and overhead expenses incurred in connection with
the distribution of Fund shares; and (iii) distribution expenses incurred by
other investment companies which sell all or substantially all of their assets
to, merge with or otherwise engage in a reorganization transaction with the
Fund. The service fees will be used to compensate brokers who have arrangements
with John Hancock Funds for providing personal and account maintenance services
to shareholders.
In the event John Hancock Funds is not fully reimbursed for payments it
makes or expenses it incurs under the Plan, these expenses will be carried
forward together with interest on the balance of these unreimbursed expenses.
Information on the Fund's total expenses is in the Financial Highlights
section of this Prospectus.
DIVIDENDS AND TAXES
THE FUND GENERALLY DECLARES DIVIDENDS DAILY AND DISTRIBUTES DIVIDENDS
MONTHLY.
DIVIDENDS. The Fund generally declares dividends daily and distributes dividends
monthly, representing all or substantially all of its net investment income.
Purchase orders which are received from a Selling Broker together with
Federal Funds by wire before 12:00 noon New York time will receive the dividend
declared that day and other purchase orders, including any order with payment
other than by Federal Funds, will begin receiving dividends the following
business day. Redemption orders effected by a Selling Broker prior to 12:00 noon
New York time will not receive that day's dividend. Refer to your brokerage
account agreement to determine the time and method of payment (for purchases)
that your Selling
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Broker will use in executing purchases and redemptions on your behalf.
TAXATION. Dividends from the Fund's net investment income and net short-term
capital gains are taxable to you as ordinary income. Dividends from the Fund's
net long-term capital gains, if any, are taxable as long-term capital gain. The
Fund does not anticipate that it will generally realize any long- term capital
gains. Dividends are taxable, whether received in cash or reinvested in
additional shares. Certain dividends may be paid by the Fund in January of a
given year but may be treated as if you received them the previous December.
Your Selling Broker will prepare and send you a statement by January 31 showing
the federal tax status of the dividends you received for the prior year.
The Fund has qualified and intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"). As a regulated investment company, the Fund will not be
subject to Federal income tax on any net investment income or net realized
capital gains distributed to its shareholders within the time period prescribed
by the Code.
On the account application, you must certify that the social security or
other taxpayer identification number you provide is your correct number and that
you are not subject to backup withholding of Federal income tax. If you do not
provide this information or are otherwise subject to this withholding, the Fund
may be required to withhold 31% of your dividends.
In addition to Federal taxes, you may be subject to state and local or
foreign taxes with respect to your investment in and distributions from the
Fund. A state income (and possibly local income and/or intangible property) tax
exemption is generally available to the extent the Fund's distributions are
derived from interest on (or, in the case of intangibles taxes, the value of its
assets is attributable to) certain U.S. Government obligations, provided in some
states that certain thresholds for holdings of such obligations and/or reporting
requirements are satisfied. Non-U.S. shareholders and tax-exempt shareholders
are subject to different tax rules not described herein. You should consult your
tax adviser for specific advice.
HOW TO BUY CLASS S SHARES
Class S shares of the Fund are offered exclusively to investors who
maintain a brokerage account with certain brokers who offer the Fund's shares as
part of a sweep program (the "Selling Broker"). When you open a brokerage
account, free credit cash balances (including deposits, proceeds of sales of
securities,
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and miscellaneous cash dividends and interest, but not amounts held by the
Selling Broker as collateral for margin obligations to the Selling Broker) in
your brokerage account will be automatically invested or "swept" into the Fund,
subject to the terms and conditions of your brokerage account agreement. When
the free credit cash balances in your brokerage account exceed the amount
specified in your brokerage account agreement at the time specified in your
brokerage account agreement, the free credit cash balance will be automatically
invested in Class S shares of the Fund in accordance with the terms of your
brokerage account agreement. Refer to your brokerage account agreement to
determine the time and method of payment that your Selling Broker will use in
executing purchases on your behalf. Your Selling Broker may benefit from the use
of free credit cash balances in your account prior to their transfer to the
Fund. See "Dividends and Taxation" for a discussion of when you will receive
dividends.
YOU WILL RECEIVE ACCOUNT STATEMENTS THAT YOU SHOULD KEEP TO HELP WITH YOUR
PERSONAL RECORDKEEPING.
Your Selling Broker will prepare and send to you a statement of your
account after any transaction that affects your share balance or registration
(statements related to reinvestment of dividends will be sent to you quarterly).
A tax information statement will be mailed to you by your Selling Broker by
January 31 of each year.
SHARE PRICE
THE PRICE OF YOUR SHARES IS THEIR NET ASSET VALUE PER SHARE, WHICH WILL
NORMALLY BE CONSTANT AT $1.00.
The net asset value per share ("NAV") is the value of one share. The
NAV is calculated by dividing the net assets allocable to the Class S shares by
the number of outstanding Class S shares. Securities in the Fund's portfolio are
valued at amortized cost, which the Board of Directors has determined
approximates market value. Under the amortized cost pricing method, a portfolio
investment is valued at its cost and thereafter any discount or premium is
amortized to maturity, regardless of the impact of fluctuating interest rates on
the market value of the investment. Amortized cost pricing facilitates the
maintenance of a $1.00 constant net asset value per share, but, of course, this
cannot be guaranteed.
The NAV is calculated twice daily, at 12:00 noon Eastern time and as of
the close of regular trading on the New York Stock Exchange (the "Exchange")
(generally at 4:00 P.M., New York time) on each day that the Exchange is open.
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The price you pay for shares of the Fund equals the NAV computed after
your investment is accepted in good order by John Hancock Funds, which will
normally be constant at $1.00 per share. There is no sales charge on Class S
shares of the Fund.
HOW TO REDEEM CLASS S SHARES
REDEMPTIONS WILL BE AUTOMATICALLY EFFECTED BY YOUR SELLING BROKER TO
SATISFY DEBIT BALANCES IN YOUR BROKERAGE ACCOUNT.
Redemptions will be automatically effected by your Selling Broker to
satisfy debit balances in your brokerage account or to provide the necessary
cash collateral for your margin obligations to your Selling Broker. Redemptions
will also be automatically effected to settle securities transactions with your
Selling Broker if your free credit balance on the day before settlement is
insufficient to settle the transactions. Your Selling Broker will, at the time
specified in your brokerage account agreement, automatically scan each sweep
account for debits and pending securities settlements, and, after application of
any free credit balances in the sweep account to such debits, your Selling
Broker will redeem on your behalf a sufficient number (or your entire balance of
Class S shares in the event that your debits exceed the amount of Class S shares
in your account) of Class S shares of the Fund in accordance with the terms of
your brokerage account agreement to satisfy any remaining debits in the account.
Refer to your brokerage account agreement to determine the time and procedures
that your Selling Broker will use in executing redemptions on your behalf. You
may also redeem Class S shares of the Fund by placing a redemption request
through your Selling Broker. Your redemption proceeds will be deposited as cash
balances in your sweep account with the Selling Broker.
You may elect the checkwriting privilege which allows you to write
checks in amounts from a minimum of $100. Checks may not be written against
shares in your account which have been purchased within the last 10 days, except
for shares purchased by wire transfer (which are immediately available).
INVESTMENTS, TECHNIQUES AND RISK FACTORS
SECURITIES OF FOREIGN ISSUERS. Foreign issuers may not be subject to accounting
standards and government supervision comparable to U.S. companies, and there is
often less publicly available information about their operations. Foreign
markets generally provide less liquidity than U.S. markets (and thus potentially
greater price volatility), and typically provide fewer regulatory protections
for investors. Foreign securities can also be affected by political or financial
instability abroad. Foreign branches of United States banks may be subject to
less stringent
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reserve requirements than domestic branches. United States branches and agencies
of foreign banks and foreign branches of United States banks may provide less
public information than, and may not be subject to, the same accounting,
auditing and financial record-keeping standards as domestic banks.
RESTRICTED AND ILLIQUID SECURITIES. The Fund may invest up to 10% of its net
assets in illiquid investments, which include repurchase agreements maturing in
more than seven days, restricted securities and securities not readily
marketable. The Fund may also invest in restricted securities eligible for
resale to certain institutional investors pursuant to Rule 144A under the
Securities Act of 1933. These purchases are subject to the Fund's investment
restriction limiting all illiquid securities held by the Fund to not more than
10% of the Fund's net assets.
LENDING OF SECURITIES. The Fund may lend portfolio securities to brokers,
dealers, and financial institutions if the loan is collateralized by cash or
U.S. Government securities according to applicable regulatory requirements. The
Fund may reinvest any cash collateral in short-term securities. When the Fund
lends portfolio securities, there is a risk that the borrower may fail to return
the loaned securities. As a result, the Fund may incur a loss, or, in the event
of the borrower's bankruptcy, the Fund may be delayed in or prevented from
liquidating the collateral. It is a fundamental policy of the Fund not to lend
portfolio securities having a total value in excess of 30% of its total assets.
REPURCHASE AGREEMENTS, FORWARD COMMITMENTS AND WHEN-ISSUED SECURITIES. The Fund
may enter into repurchase agreements and may purchase securities on a forward
commitment or when-issued basis. In a repurchase agreement, the Fund buys a
security subject to the right and obligation to sell it back to the seller at a
higher price. These transactions must be fully collateralized at all times, but
involve some credit risk to the Fund if the other party defaults on its
obligation and the Fund is delayed in or prevented from liquidating the
collateral. The Fund will segregate in a separate account cash or liquid, high
grade debt securities equal in value to its forward commitments and when-issued
securities. Purchasing debt securities for future delivery or on a when-issued
basis may increase the Fund's overall investment exposure and involves a risk of
loss if the value of the securities declines before the settlement date.
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JOHN HANCOCK MONEY MARKET FUND JOHN HANCOCK MONEY MARKET FUND
INVESTMENT ADVISER CLASS S SHARES
John Hancock Advisers, Inc. PROSPECTUS
101 Huntington Avenue SEPTEMBER 12, 1995
Boston, Massachusetts 02199-7603
PRINCIPAL DISTRIBUTOR A MONEY MARKET FUND THAT SEEKS TO
John Hancock Funds, Inc. PROVIDE MAXIMUM CURRENT INCOME
101 Huntington Avenue CONSISTENT WITH CAPITAL PRESER-
Boston, Massachusetts 02199-7603 VATION AND LIQUIDITY.
CUSTODIAN
State Street Bank and Trust Company 101 HUNTINGTON AVENUE
225 Franklin Street BOSTON, MASSACHUSETTS 02199-7603
Boston, Massachusetts 02110
TRANSFER AGENT
John Hancock Investor Services Corporation
P.O. Box 9116
Boston, Massachusetts 02205-9116
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116
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