<PAGE> 1
JOHN HANCOCK FUNDS
- --------------------------------------------------------------------------------
GLOBAL
RESOURCES
FUND
ANNUAL REPORT
October 31, 1995
<PAGE> 2
CHAIRMAN'S MESSAGE
TRUSTEES
Edward J. Boudreau, Jr.
James F. Carlin*
William H. Cunningham*
Charles L. Ladner*
Leo E. Linbeck*
Patricia P. McCarter*
Steven R. Pruchansky*
Lt. Gen. Norman H. Smith, USMC (Ret.)*
John P. Toolan*
*Members of the Audit Committee
OFFICERS
Edward J. Boudreau, Jr.
Chairman and Chief Executive Officer
Robert G. Freedman
Vice Chairman and Chief Investment Officer
Anne C. Hodsdon
President
Thomas H. Drohan
Senior Vice President and Secretary
James B. Little
Senior Vice President and Chief Financial Officer
Susan S. Newton
Vice President and Compliance Officer
James J. Stokowski
Vice President and Treasurer
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
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
INDEPENDENT AUDITORS
Ernst &Young llp
200 Clarendon Street
Boston, Massachusetts 02116
DEAR FELLOW SHAREHOLDERS:
[A 1 1/4" photo of Edward J. Boudreau Jr., Chairman and Chief Executive Officer,
flush right, next to first paragraph.]
Investors around the world have been watching Wall Street in awe for the better
part of 1995. Through October, the Standard & Poor's 500-Stock Index, a
widely-used barometer of stock performance, had grown by more than 25%.
Investors who stayed in the market after a disappointing 1994 have been
rewarded.
On another street, Pennsylvania Avenue, one of the hot topics many people are
watching is Medicare reform. While there's no clear-cut solution on the horizon,
today's Medicare debate should serve as another wake-up call to all Americans
about the need to have a financial plan and to save for retirement. Whether or
not the government changes the way health-care benefits are allotted to senior
citizens, the message is clear: your future security and well-being lies in your
own hands -- not Uncle Sam's.
We know you've heard it a hundred times. Pick up almost any financial
periodical today, and you'll see cover stories on retirement. Many of them will
perhaps scare you or make you think that the task of saving for retirement is
just too daunting. But take heart. We don't believe that and neither do many
financial experts.
Yet retirement planning is not to be taken lightly. To live the way you want
to -- the way you deserve to after all those years of hard work -- you need to
plan and save now, on a regular basis, no matter what your other costs, no
matter how small the amount, no matter what your current age. It may be easier
if you start earlier, but it's never too late.
Building a secure nest egg is indeed doable. Talk to your financial adviser
about establishing your retirement planning roadmap, if you haven't already. And
educate yourself by reading some of the many articles about how to save for
retirement. Take control of your future by saving today. That way, when it comes
time for retirement, you shouldn't have to think about any street but Easy
Street.
Sincerely,
/s/ Edward J. Boudreau, Jr.
- ---------------------------
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER
2
<PAGE> 3
BY KEVIN R. BAKER FOR THE PORTFOLIO MANAGEMENT TEAM
JOHN HANCOCK
GLOBAL RESOURCES FUND
NATURAL RESOURCE STOCKS AMONG THE MARKET'S LAGGARDS IN
OTHERWISE STRONG PERIOD FOR STOCKS: OUTLOOK BRIGHTER
OVER THE LONG TERM
As of November 1, 1995, portfolio management responsibilities have been assumed
by John Hancock Funds' Global Equities portfolio management team. What follows
is their commentary on the market, the Fund's current investment strategy and
their outlook for the months ahead.
The past year was a difficult one for John Hancock Global Resources Fund.
Sluggish global economic growth, better-than-expected production of oil from
non-OPEC countries and a warmer-than-normal winter in the U.S. kept downward
pressure on already low energy prices for much of the past 12 months. Problems
resulting from the devaluation of the Mexican peso late last year continued to
wreak havoc on many of the world's Latin American
[A 2 3/2" x 2 1/4" photo of Kevin Baker at bottom center. Caption reads: "Kevin
R. Baker"]
and Asian emerging markets. Finally, basic materials like steel, cement and
metals performed poorly as the U.S. rate of growth moderated. These factors
prevented global resources stocks from enjoying the stock market rally we've
seen so far in 1995.
Against that backdrop, John Hancock Global Resources Fund underperformed
relative to its peers. For the 12 months ended October 31, 1995, the Fund's
Class A and Class B shares had total returns of - 10.37% and - 11.04%,
respectively, at net asset value. Those returns compared to the - 0.40% return
for the average natural resources fund, according to Lipper Analytical
Services.(1)
PERFORMANCE REVIEW
The Fund's above-average exposure to energy stocks - which included
[CAPTION]
"THE PAST YEAR WAS A DIFFICULT ONE..."
3
<PAGE> 4
John Hancock Funds - Global Resources Fund
[Chart with heading "Top Five Common Stock Holdings" at top of left hand column.
The chart lists five holdings: 1) York Research 6.1% 2) Noble Affiliates 4.3%
3) Nuevo Energy 4.2% 4) Cairn Energy USA 4.2% 5) International Petroleum Corp.
4.1%. A footnote below reads "As a percentage of net assets on October 31,
1995."]
drillers, refiners and marketers as well as exploration and production, service,
and natural gas pipeline companies -- accounted for much of the Fund's lag. For
the majority of the past 12 months, oil prices have remained flat, except for a
brief period in the second quarter of 1995 when we saw some improvement. The
performance of energy companies is more closely tied to oil prices than other
natural resources companies are to their underlying commodity. Exploration and
production companies were most severely hurt.
While the price of oil hasn't helped these companies recently, we believe
that the stage is set for them to enjoy increases in earnings for several years
to come. Worldwide demand is growing, but supply isn't keeping pace. In North
America alone, we've experienced dwindling inventories of most types of energy.
This time last year, there were about 330 million barrels in storage; now that
level stands at 300 million barrels
[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 Reading &
Bates followed by an up arrow and the phrase "Good Oil Finds." The second
listing is Bellweather Exploration followed by a down arrow and the phrase
"Drilling delays cause decline in stock price." The third listing is Cairn
Energy by an up arrow and the phrase "New energy find." Footnote below reads:
"See "Schedule of Investments." Investment holdings are subject to change."]
- -- a 9% decline. Add to that the spectacular economic growth in places like
China, Indonesia and Latin America and it appears the prospects for increased
demand for energy are quite good.
One bright spot within the energy sector was the drillers. When oil prices
rose briefly in the early spring, many oil companies increased their drilling
activity. That resulted in higher revenues and profits for this sector of the
market. One of the Fund's standouts was Reading & Bates, which had successful
exploration in the North Sea and the Gulf of Mexico with its deep water drilling
technology. But not all the drillers were as strong. Bellweather Exploration
experienced delays and its stock price suffered as a consequence.
STRATEGIC CHANGES
Over the past several months, we built our stake in gold-related stocks to about
20% of investments at the end of the period. Unfortunately, the price of gold
has been relatively flat since our purchase and the stocks have suffered. But we
believe there are plenty of reasons for the price of gold to move higher next
year. For one, many of the central banks of the world, including the U.S., Japan
and Germany, have eased their monetary policies and allowed interest rates in
those countries to decline. That's important because periods of easing often are
followed by periods of inflation. And when inflation is on the rise, gold stocks
tend to do well. What's more, the supply/demand picture looks favorable for
gold.
We favor companies that are experiencing strong production. A gold stock that
performed well during the period was Freeport McMoRan Copper & Gold. One reason
why it's attractive
[CAPTION]
"ONE BRIGHT SPOT WITHIN THE ENERGY SECTOR WAS THE DRILLERS."
4
<PAGE> 5
John Hancock Funds - Global Resources Fund
[Bar chart with heading "Fund Performance" at top of left hand column. Under the
heading is the footnote: "For the year ended October 31, 1995." The chart is
scaled in increments of 6% from bottom to top, with 0% at the top and-12% at
the bottom. Within the chart there are three solid bars. The first represents
the-10.37% total return for the John Hancock Global Resources Fund, Class A.
The second represents the-11.04% total return for John Hancock Global
Resources Fund, Class B. The third represents the-0.40% total return for the
average natural resources fund. A footnote below reads: "Total returns for John
Hancock Global Resources Fund are at net asset value with all distributions
reinvested. The average natural resources fund is tracked by Lipper Analytical
Services. (1) See following page for historical performance information."]
is that the company recently found in Indonesia the largest gold deposit
discovered over the past several decades. Another company, Barrick Gold, has
been successful exploring in Nevada and Chile this year and is expected to
increase its production significantly over the next two to three years. We also
focused on companies that use new technologies to process ore and extract gold.
One example is Newmont Gold, which has developed a process to accomplish that
task using bacteria.
We reduced our exposure to emerging markets, primarily by selling some Latin
American holdings. The stock markets in these countries tend to perform in line
with the value of the Mexican peso. And when the peso was devalued last
December, these markets tumbled and we pared back our holdings in the region. It
doesn't appear that stability will return to these markets in the near term, so
we're happy to remain on the sidelines for now and invest in those few
opportunities we believe can buck the peso's instability.
OUTLOOK AND STRATEGY
In our view, energy prices have the potential to rise significantly over the
next year or so because the supply/demand fundamentals are so favorable. If we
have a normal winter, inventories could start to decline and the supply part of
the equation should get even more favorable. The energy industry has downsized
and lowered costs. If commodity prices -- oil and natural gas -- rise, energy
companies will be able to charge higher prices for their products, but also will
be able to keep their costs low. That could turn out to be a recipe for higher
profits, and subsequently, higher earnings.
We'll focus on finding companies we think have the potential to grow earnings
40% or 50% over the next 12 months. For now, we'll keep our exposure to energy
at its current levels and we'll maintain our holdings in gold. We believe the
supply/demand fundamentals favor this sector as well. If investors fear
inflation, or start looking for a "safe haven" investment, the price of gold
could rise rapidly above $400 an ounce and beyond. If that is the case, gold
stocks could do quite well.
- --------------------------------------------------------------------------------
(1) Figures from Lipper Analytical Services include reinvested dividends and do
not take into account sales charges. Actual load-adjusted performance is lower.
[CAPTION]
"...ENERGY PRICES HAVE THE POTENTIAL TO RISE
SIGNIFICANTLY OVER THE NEXT YEAR OR SO..."
5
<PAGE> 6
A LOOK AT PERFORMANCE
The tables on the right show the cumulative total returns and the average annual
total returns for the John Hancock Global Resources Fund. Total return is a
performance measure that equals the sum of all dividends and capital gains,
assuming reinvestment of these distributions and the change in the price of the
Fund's shares, expressed as a percentage of the Fund's average net assets.
Performance figures include the maximum applicable sales charge of 5% for Class
A shares. (Prior to May 15, 1995, the maximum applicable sales charge for Class
A shares was 5.75%.) The effect of the maximum contingent deferred sales charge
for Class B shares (maximum 5% and declining to 0% over six years) is included
in Class B performance. Remember that all figures represent past performance and
are no guarantee of how the Fund will perform in the future. Also, keep in mind
that the total return and share price of the Fund's investments will fluctuate.
As a result, your Fund's shares may be worth more or less than their original
cost, depending on when you sell them. Please see your prospectus for
information regarding the risks associated with international and industry
segment investing.
Note: Participant-directed defined-contribution plans with at least 100 eligible
employees at inception of the Fund account may purchase Class A shares without
an initial sales charge as of March 15, 1995. If those shares are redeemed,
however, during the year following the calendar year end during which they were
purchased, a contingent deferred sales charge will be assessed.
CUMULATIVE TOTAL RETURNS
For the Period Ended September 30, 1995
<TABLE>
<CAPTION>
LIFE
ONE FIVE OF
YEAR YEARS FUND
---- ----- ----
<S> <C> <C> <C>
John Hancock
Global Resources Fund: Class A (8.52)% 12.68%(1) N/A
John Hancock
Global Resources Fund: Class B (9.15)% 25.68% 92.99%(2)
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
For the Period Ended September 30, 1995
<TABLE>
<CAPTION>
LIFE
ONE FIVE OF
YEAR YEARS FUND
---- ----- ----
<S> <C> <C> <C>
John Hancock
Global Resources Fund: Class A (8.52)% (2.08)(1) N/A
John Hancock
Global Resources Fund: Class B (9.15)% 4.68% 8.64%(2)
</TABLE>
NOTES TO PERFORMANCE
(1) Class A shares started on June 15, 1994.
(2) Class B shares started on October 26, 1987.
6
<PAGE> 7
WHAT HAPPENED TO A $10,000 INVESTMENT...
The charts on the right show how much a $10,000 investment in the John Hancock
Global Resources Fund would be worth on October 31, 1995, assuming you had
invested on the day each class of shares started and reinvested all
distributions. For comparison, we've shown the same $10,000 investment in the
Standard & Poor's 500 Stock Index -- an unmanaged index that includes 500 widely
traded common stocks and is a commonly used measure of stock market performance.
[Line chart with the heading John Hancock Global Resources 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 Standard & Poor's 500 Stock Index and
is equal to $13,181 as of October 31, 1995. The second line represents the value
of the hypothetical $10,000 investment made in the Global Resources Fund on June
15, 1994, before sales charge, and is equal to $9,402 as of October 31, 1995.
The third line represents the Global Resources Fund after sales charge and is
equal to $8,934 as of October 31, 1995.]
[Line chart with the heading John Hancock Global Resources Fund: Class B*,
representing the growth of a hypothetical $10,000 investment over the life of
the fund. Within the chart are two lines.
The first line represents the value of the Standard & Poor's 500 Stock Index and
is equal to $23,295 as of October 31, 1995. The second line represents the
hypothetical $10,000 investment made in the Global Resources Fund on October 26,
1987, before contingent deferred sales charge, and is equal to $17,702 as of
October 31, 1995.]
*No contingent deferred sales charge applicable.
7
<PAGE> 8
FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments at value - Note C:
Common stocks and warrants (cost - $27,819,286) ........... $28,363,048
Receivable for shares sold ................................. 902
Receivable for investments sold ............................ 540,732
Dividend receivable ........................................ 11,059
Foreign tax receivable ..................................... 5,029
Miscellaneous receivable ................................... 10,317
Other assets ............................................... 2,881
-----------
Total Assets ............................. 28,933,968
-----------------------------------------------------------
LIABILITIES:
Payable for shares repurchased ............................. 35,221
Temporary overdraft of cash ................................ 103,818
Payable to John Hancock Advisers, Inc. and
affiliates - Note B ...................................... 19,537
Accounts payable and accrued expenses ...................... 49,222
-----------
Total Liabilities ........................ 207,798
-----------------------------------------------------------
NET ASSETS:
Capital paid-in ............................................ 28,604,072
Accumulated net realized loss on investments and
foreign currency transactions .............................. (421,721)
Net unrealized appreciation of investments and
foreign currency transactions ............................ 543,819
-----------
Net Assets ............................... $28,726,170
===========================================================
NET ASSET VALUE PER SHARE:
(Based on net asset values and shares of beneficial
interest outstanding - 75,000,000 shares authorized
with $0.01 per share par value, respectively)
Class A - $2,323,988 / 165,952 ............................. $ 14.00
=============================================================================
Class B - $26,402,182 / 1,905,178 .......................... $ 13.86
=============================================================================
MAXIMUM OFFERING PRICE PER SHARE*
Class A - $(14.00 x 105.26)% ............................... $ 14.74
=============================================================================
</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 OCTOBER 31, 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 STATED.
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $28,795) ...... $ 404,349
Interest ..................................................... 40,530
-----------
444,879
-----------
Expenses:
Investment management fee - Note B .......................... 263,434
Distribution/service fee - Note B
Class A ................................................... 8,283
Class B ................................................... 305,777
Transfer agent fee .......................................... 132,727
Custodian fee ............................................... 68,885
Printing .................................................... 43,195
Auditing fee ................................................ 36,134
Registration and filing fees ................................ 34,089
Legal fees .................................................. 8,791
Trustees' fees .............................................. 8,081
Advisory board fee .......................................... 3,848
Miscellaneous ............................................... 3,821
-----------
Total Expenses ............................. 917,065
-----------------------------------------------------------
Net Investment Loss ........................ (472,186)
-----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investments sold ........................ (314,860)
Net realized gain on foreign currency transactions ........... 2,682
Change in net unrealized appreciation/depreciation
of investments ............................................. (3,606,930)
Change in net unrealized appreciation/depreciation of
foreign currency transactions .............................. 57
-----------
Net Realized and Unrealized
Loss on Investments and
Foreign Currency Transactions .............. (3,919,051)
-----------------------------------------------------------
Net Decrease in Net Assets
Resulting from Operations .................. $(4,391,237)
===========================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 9
FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------
1995 1994
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss .............................................................................. $ (472,186) $ (441,384)
Net realized loss on investments sold and foreign currency transactions .......................... (312,178) (90,344)
Change in net unrealized appreciation/depreciation of investments and foreign
currency transactions ........................................................................... (3,606,873) 553,900
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations ................................. (4,391,237) 22,172
------------ ------------
FROM FUND SHARE TRANSACTIONS -- NET* ............................................................... (9,191,467) 22,788,288
------------ ------------
NET ASSETS:
Beginning of period .............................................................................. 42,308,874 19,498,414
------------ ------------
End of period .................................................................................... $ 28,726,170 $ 42,308,874
============ ============
* ANALYSIS OF FUND SHARE TRANSACTIONS:
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------------------------
1995 1994
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
CLASS A**
Shares sold ............................................................ 106,612 $ 1,595,642 419,756 $ 6,352,382
Less shares repurchased ................................................ (284,537) (4,070,740) (75,879) (1,159,547)
-------- ------------ ---------- ------------
Net increase (decrease) ................................................ (177,925) $ (2,475,098) 343,877 $ 5,192,835
======== ============ ========== ============
CLASS B
Shares sold ............................................................ 497,933 $ 7,105,217 1,781,599 $ 27,695,930
Less shares repurchased ................................................ (964,221) (13,821,586) (652,737) (10,100,477)
-------- ------------ ---------- ------------
Net increase (decrease) ................................................ (466,288) $ (6,716,369) 1,128,862 $ 17,595,453
======== ============ ========== ============
</TABLE>
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 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 VALUES.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 10
FINANCIAL STATEMENTS
John Hancock Funds - Global Resources 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
JUNE 15, 1994
YEAR ENDED (COMMENCEMENT OF
OCTOBER 31, OPERATIONS) TO
1995(a) OCTOBER 31, 1994
---------- ----------------
<S> <C> <C>
CLASS A
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period ........................................................ $ 15.62 $ 14.89
--------- ---------
Net Investment Loss (b) ..................................................................... (0.08) (0.08)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions .... (1.54) 0.81
--------- ---------
Total from Investment Operations ........................................................... (1.62) 0.73
--------- ---------
Net Asset Value, End of Period .............................................................. $ 14.00 $ 15.62
========= =========
Total Investment Return at Net Asset Value (c) .............................................. (10.37)% 4.90%(d)
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................................................... $ 2,324 $ 5,372
Ratio of Expenses to Average Net Assets ..................................................... 1.93% 0.73%*
Ratio of Net Investment Loss to Average Net Assets .......................................... (0.53)% (0.42)%*
Portfolio Turnover Rate ..................................................................... 101% 96%
</TABLE>
THE FINANCIAL HIGHLIGHTS SUMMARIZE THE IMPACT OF THE FOLLOWING FACTORS ON A
SINGLE SHARE FOR THE PERIODS INDICATED: THE NET INVESTMENT INCOME, GAINS
(LOSSES), DIVIDENDS, 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> 11
FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------------------------------------
1995(a) 1994 1993 1992 1991
-------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
CLASS B
PER SHARE OPERATING PERFORMANCE
Net Asset Value, Beginning of Period ..................... $ 15.58 $ 15.69 $ 12.41 $ 12.20 $ 11.57
-------- -------- -------- --------- ----------
Net Investment Loss (b) .................................. (0.21) (0.23) (0.24) (0.24) (0.17)
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions .......................... (1.51) 0.12 3.52 0.58 1.24
-------- -------- -------- --------- ----------
Total from Investment Operations ........................ (1.72) (0.11) 3.28 0.34 1.07
-------- -------- -------- --------- ----------
Less Distributions
Dividends from Net Investment Income ..................... -- -- -- -- --
Distributions from Realized Gains on Investments Sold .... -- -- -- (0.13) (0.44)
-------- -------- -------- --------- ----------
Total Distributions to Shareholders ..................... -- -- -- (0.13) (0.44)
-------- -------- -------- --------- ----------
Net Asset Value, End of Period ........................... $ 13.86 $ 15.58 $ 15.69 $ 12.41 $ 12.20
======== ======== ======== ========= ==========
Total Investment Return at Net Asset Value (c) ........... (11.04)% (0.70)% 26.43% 2.93% 9.81%
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000's omitted) ................ $ 26,402 $ 36,937 $ 19,498 $ 7,428 $ 10,766
Ratio of Expenses to Average Net Assets .................. 2.68% 2.54% 2.92% 3.75% 3.64%
Ratio of Net Investment Loss to Average Net Assets ....... (1.43)% (1.52)% (1.65)% (2.01)% (1.47)%
Portfolio Turnover Rate .................................. 101% 96% 83% 59% 93%
<FN>
* On an annualized basis.
(a) On December 22, 1994, John Hancock Advisers, Inc. became the investment adviser of the Fund.
(b) Per share information has been calculated using the average number of shares outstanding.
(c) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(d) Not annualized.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 12
FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
<TABLE>
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<CAPTION>
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
<S> <C> <C>
COMMON STOCKS
CONSUMER GOODS & SERVICES (1.98)%
Reliance Industries Ltd. American
Depositary Receipt (ADR) (India)** ........... 40,000 $ 568,416
----------
ENERGY - EQUIPMENT (3.19)%
Camco International Inc. ...................... 40,000 915,000
----------
ENERGY - EXPLORATION AND PRODUCTION (20.87)%
Abacan Resource Corp.(Canada)** ............... 350,000* 858,725
Bellwether Exploration Co. .................... 190,000 1,021,250
Benton Oil & Gas Co.** ........................ 80,000* 970,000
International Petroleum Corp.(Canada)** ....... 500,000* 1,187,500
Newscope Resources Ltd.(Canada)** ............. 255,200* 733,700
Noble Affiliates Inc.** ....................... 175,000 1,225,000
----------
5,996,175
----------
ENERGY - SERVICES (23.51)%
Amercian Ecology Corp. ........................ 95,000 332,500
Cairn Energy USA, Inc.** ...................... 100,000 1,200,000
Energy Ventures Inc.** ........................ 50,000* 950,000
Global Industries Ltd** ....................... 45,000 1,181,250
Nuevo Energy Co.** ............................ 55,000 1,216,875
Reading and Bates Corp.** ..................... 90,000* 1,035,000
Transocean AS(Norway)** ....................... 55,000* 838,811
----------
6,754,436
----------
ENTERTAINMENT (2.66)%
Brassie Golf Corp.(Canada)** .................. 407,900 764,813
----------
INDUSTRIAL - INTERMEDIATE MATERIALS (11.54)%
Concordia Paper Holdings, (ADR)
(Hong Kong)** ................................ 40,000* 370,000
Hindalco Industries Ltd.(India)** ............. 20,000 637,600
Kymmene Oy(Finland) ........................... 20,000 546,253
PT Indah Kiat Pulp & Paper Corp. ..............
(Indonesia) .................................. 614,400 601,928
PT Indocement Tunggal Prakar
(Indonesia) .................................. 170,000* 628,796
Venezolana de Prerreducidos Caroni
(Venezuela)** ................................ 101,000 530,250
----------
3,314,827
----------
INDUSTRIAL - MISCELLANEOUS (11.78)%
Eastern Aluminium Ltd.(Austrailia)** .......... 620,000 570,586
Grupo Mexico S.A. B (Mexico) .................. 120,000* 501,048
</TABLE>
THE SCHEDULE OF INVESTMENTS IS A COMPLETE LIST OF ALL SECURITIES OWNED BY GLOBAL
RESOURCES FUND ON OCTOBER 31, 1995. IT'S DIVIDED INTO TWO MAIN CATEGORIES:COMMON
STOCKS AND WARRANTS. THE COMMON STOCKS ARE FURTHER BROKEN DOWN BY INDUSTRY
GROUPS.
<TABLE>
<CAPTION>
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
<S> <C> <C>
INDUSTRIAL - MISCELLANEOUS (CONTINUED)
Holderbank Financiere Glarus
AG (Switzerland)** .......................... 712 $ 571,348
York Research Corp.** ......................... 240,000 1,740,000
-----------
3,382,982
-----------
MINING (21.50)%
Amax Gold Inc.** .............................. 150,000* 843,750
Barrick Gold Corp.(Canada) .................... 35,000* 809,375
Battle Mountain Gold Co. ...................... 100,000* 762,500
Cambior Inc.(Canada) .......................... 80,000* 790,000
Hemlo Gold Mines Inc.(Canada) ................. 100,000* 825,000
Freeport-McMoRan Copper & Gold Inc. ........... 40,000 915,000
Newmont Gold Co. .............................. 15,000 540,000
Santa Fe Pacific Corp. ........................ 70,000* 691,250
-----------
6,176,875
-----------
UTILITIES (1.69)%
OEMV AG(Austria)** ............................ 5,625 485,295
-----------
TOTAL COMMON STOCKS
(Cost $27,819,286) (98.72)% 28,358,819
-------- -----------
WARRANTS
INDUSTRIAL - MISCELLANEOUS (0.01)%
Holderbank Financiere Glarus AG
(Switzerland)** ................................ 3,560* 4,229
-----------
TOTAL WARRANTS
(Cost $0) (0.01)% 4,229
-------- -----------
TOTAL INVESTMENTS (98.73)% $28,363,048
======== ===========
<FN>
* Securities, other than short-term investments, newly added to the portfolio
during the period ended October 31, 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.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 13
FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
PORTFOLIO CONCENTRATION
- --------------------------------------------------------------------------------
THE GLOBAL RESOURCES FUND INVESTS PRIMARILY IN EQUITY SECURITIES OF ISSUERS IN
THE NATURAL RESOURCE 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 OCTOBER 31, 1995 ASSIGNED TO THE VARIOUS
COUNTRY CATEGORIES.
<TABLE>
<CAPTION>
MARKET VALUE AS A
COUNTRY DIVERSIFICATION % OF NET ASSETS
- ----------------------- ---------------
<S> <C>
Australia ................................................. 1.99%
Austria ................................................... 1.69
Canada .................................................... 20.78
Finland ................................................... 1.90
Hong Kong ................................................. 1.29
India ..................................................... 4.20
Indonesia ................................................. 4.28
Mexico .................................................... 1.74
Norway .................................................... 2.92
Switzerland ............................................... 2.00
United States ............................................. 54.09
Venezuela ................................................. 1.85
-----
TOTAL INVESTMENTS 98.73%
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
NOTE A --
ACCOUNTING POLICIES
John Hancock Series, Inc. (the "Corporation") is a diversified, open-end
management investment company, registered under the Investment Company Act of
1940, as amended. The Corporation consists of six series portfolios: John
Hancock Global Resources Fund (the "Fund"), John Hancock Emerging Growth Fund,
John Hancock High Yield Tax Free Fund, John Hancock High Yield Bond Fund, John
Hancock Money Market Fund and John Hancock Government Income Fund (collectively
the "Funds"). The Board of Directors may authorize the creation of additional
Funds from time to time to satisfy various investment objectives. Effective
December 22, 1994 (see Note B), the Corporation and Funds changed names by
replacing the word Transamerica with John Hancock.
The Board of Directors have authorized the issuance of two classes of shares
of the Fund, designated as Class A and Class B. The shares of each class
represent an interest in the same portfolio of investments of the Fund and have
equal rights to voting, redemption, dividends, and liquidation, except that
certain expenses, subject to the approval of the Board of Directors, may be
applied differently to each class of shares in accordance with current
regulations of the Securities and Exchange Commission and the Internal Revenue
Service. Shareholders of a class which bears distribution/service expenses under
the terms of a distribution plan have exclusive voting rights regarding such
distribution plan. Class A Shares are subject to an initial sales charge of up
to 5.00% and a 12b-1 distribution plan. Prior to May 15, 1995, the maximum sales
charge was 5.75%. Class B Shares are subject to a contingent deferred sales
charge and a separate 12b-1 distribution plan. On June 15, 1994, Class A shares
were sold to commence class activity. 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 Board of Directors. Short-term debt investments maturing within
60 days are valued at amortized cost which approximates market value.
JOINT REPURCHASE AGREEMENT Pursuant to an exemptive order issued by the
Securities and Exchange Commission, the Fund, along with other registered
investment companies having a management contract with John Hancock Advisers,
Inc. (the "Adviser"), a wholly-owned subsidiary of The Berkeley Financial Group,
may participate in a joint repurchase agreement transaction. Aggregate cash
balances are invested in one or more repurchase agreements, whose underlying
securities are obligations of the U.S. government and/or its agencies. The
Fund's custodian bank receives delivery of the underlying securities for the
joint account on the Fund's behalf. The Adviser is responsible for ensuring that
the agreement is fully collateralized at all times.
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. 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 October 31, 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.
14
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
Transactions affecting statement of operations accounts and net realized
gain/loss on investments are translated at the rates prevailing at the dates of
the transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of
foreign currency, currency gains or losses realized between the trade and
settlement dates on securities transactions and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities, resulting
from changes in the exchange rate.
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 for both financial
reporting and federal income tax purposes.
DISCOUNT ON SECURITIES The Fund accretes discount from par value on securities
from either the date of issue or the date of purchase over the life of the
security, as required by the Internal Revenue Code.
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
investments, to its shareholders. Therefore, no federal income tax provision is
required. For federal income tax purposes, at October 31, 1995, the Fund has
$421,721 of capital loss carryforwards available, to the extent provided by
regulations, to offset future net realized capital gains. If such carryforwards
are used by the Fund, no capital gain distributions will be made. The
carryforwards expire as follows: October 31, 2000 -- $16,520, October 31, 2002
- -- $90,341 and October 31, 2003 -- $314,860. For Federal income tax purposes,
net currency exchange gains and losses from sale of foreign debt securities must
be treated as ordinary income even though such items are gains and losses for
accounting purposes.
DIVIDENDS, DISTRIBUTIONS AND INTEREST Interest income on investment securities
is recorded on the accrual basis. Foreign income may be subject to foreign
withholding taxes which are accrued as applicable.
The Fund records all distributions to shareholders from net investment income
and realized gains on the ex-dividend date. Such distributions are determined in
conformity with income tax regulations, which may differ from generally accepted
accounting principles. Dividends paid by the Fund, if any, 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 effect of expenses that may be applied
differently to each class as explained previously.
EXPENSES The majority of the expenses of the Corporation are directly
identifiable to an individual Fund. Expenses which are not readily identifiable
to a specific Fund are allocated in such a manner as deemed equitable, taking
into consideration, among other things, the nature and type of expense and the
relative sizes of the Fund.
CLASS ALLOCATIONS Income, common expenses and realized and unrealized gains
(losses) are determined 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 appropriated net assets of each class and the specific expense rate(s)
applicable to each class.
NOTE B --
MANAGEMENT FEE, ADMINISTRATIVE
SERVICES AND TRANSACTIONS WITH AFFILIATES
AND OTHERS
On December 22, 1994, John Hancock Advisers, Inc. (the "Adviser"), a wholly
owned subsidiary of The Berkeley Financial Group, became the investment adviser
for the Fund with approval of the Board of Directors and shareholders of the
Fund. The Fund's former investment manager was Transamerica Fund Management
Company ("TFMC").
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
Under the present investment management contract, the Fund pays a monthly
management fee to the Adviser for a continuous investment program equivalent, to
0.75% of the Fund's average daily net assets. This fee structure is consistent
with the former agreement with TFMC. For the period ended October 31, 1995, the
advisory fee earned by the Adviser and TFMC amounted to $212,918 and $50,516,
respectively, resulting in a total fee of $263,434.
The Adviser and TFMC, for their respective periods, provided administrative
services to the Fund pursuant to an administrative service agreement through
January 16, 1995 on which day the agreement was terminated.
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.
On December 22, 1994 John Hancock Funds, Inc. ("JH Funds"), a wholly-owned
subsidiary of the Adviser, became the principal underwriter of the Fund. Prior
to this date, Transamerica Fund Distributors, Inc. ("TFD") served as the
principal underwriter and distributor of the Fund. For the period ended October
31, 1995, JH Funds and TFD received net sales charges of $13,467 with regard to
sales of Class A shares. Out of this amount, $2,273 was retained and used for
printing prospectuses, advertising, sales literature and other purposes, $10,959
was paid as sales commissions to unrelated broker-dealers and $235 was paid as
sales commissions to sales personnel of John Hancock Distributors, Inc.
("Distributors"), Tucker Anthony, Incorporated ("Tucker Anthony") and Sutro
&Co., Inc. ("Sutro"). 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, formerly TFD, 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
October 31, 1995, contingent deferred sales charges amounted to $99,592.
In addition, to compensate JH Funds for the services it provides as
distributor of shares of the Fund, the Fund has adopted a Distribution Plan 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 for distribution
and service expenses which in total will not exceed on an annual basis 0.25% of
the Fund's average daily net assets attributable to Class A shares and 1.00%
(0.95% effective December 1, 1995) of the Fund's average daily net assets
attributable to Class B shares, to reimburse JHFunds 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. This fee structure and plan is similar to the former arrangement
with TFD.
The Board of Directors approved a shareholder servicing agreement between the
Fund and John Hancock Investor Services Corporation ("Investor Services"), a
wholly owned subsidiary of The Berkeley Financial Group, for the period between
December 22, 1994 and May 12, 1995, inclusive, under which Investor Services
processed telephone transactions on behalf of the Fund. As of May 15, 1995, the
Fund entered into a full service transfer agent agreement with Investor
Services. Prior to this date The Shareholder Services Group was the transfer
agent. The Fund will pay Investor Services a fee based on the number of
shareholder accounts and certain out-of-pocket expenses.
16
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS
John Hancock Funds - Global Resources Fund
A partner with Baker & Botts was an officer of the Corporation until December
22, 1994. During the period ended October 31, 1995, legal fees paid to Baker &
Botts amounted to $460.
Mr. Edward J. Boudreau, Jr. is a director and officer of the Adviser and its
affiliates as well as Director of the Corporation. The compensation of
unaffiliated Directors is borne by the Fund. Effective with the fees paid for
1995, the unaffiliated Directors may elect to defer 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.
The Fund has an independent advisory board composed of certain retired
Directors who provide advice to the current Trustees in order to facilitate a
smooth management transition. The Fund pays the advisory board and its counsel
a fee.
NOTE C --
INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of securities, other than obligations of the
U.S. government and its agencies and short-term obligations, during the period
ended October 31, 1995 aggregated $34,964,923 and $45,488,648, respectively.
There were no purchases or sales of long-term obligations of the U.S. government
and its agencies during the period ended October 31, 1995.
The cost of investments owned at October 31, 1995 for Federal income tax
purposes was $27,819,286. Gross unrealized appreciation and depreciation of
investments aggregated $3,554,147 and $3,010,385, respectively, resulting in net
unrealized appreciation of $543,762.
NOTE D --
RECLASSIFICATION OF CAPITAL ACCOUNTS
During the year ended October 31, 1995, the Fund has reclassified amounts to
reflect a decrease in accumulated net investment loss of $472,186, an increase
in accumulated net realized loss on investments of $2,682 and a decrease in
capital paid-in of $469,504. This represents the cumulative amount necessary to
report these balances on a tax basis, excluding certain temporary differences,
as of October 31, 1995. Additional adjustments may be needed in subsequent
reporting periods. These reclassifications, which have no impact on the net
asset value of the Fund, are primarily attributable to certain differences in
the computation of distributable income and capital gains under federal tax
rules versus generally accepted accounting principles.
17
<PAGE> 18
John Hancock Funds - Global Resources Fund
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Directors and Shareholders of
John Hancock Series, Inc. --
John Hancock Global Resources Fund
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the John Hancock Global Resources Fund (the
"Fund"), (formerly the Transamerica Global Resources Fund), one of the
portfolios constituting John Hancock Series, Inc. (the "Corporation") (formerly
Transamerica Series, Inc.), as of October 31, 1995, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
John Hancock Global Resources Fund portfolio of John Hancock Series, Inc. at
October 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated periods, in conformity
with generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 15, 1995
TAX INFORMATION NOTICE (UNAUDITED)
For federal income tax purposes, the following information is furnished with
respect to the distributions of the Fund for its fiscal year ended October 31,
1995.
The Fund has not paid any distributions of ordinary income dividends or net
long-term capital gains during the fiscal year.
18
<PAGE> 19
ADDITIONAL INFORMATION
John Hancock Funds - Global Resources Fund
On December 16, 1994 , a special meeting of John Hancock (formerly Transamerica)
Series, Inc. (the "Corporation") in respect of John Hancock (formerly
Transamerica) Global Resources Fund (the "Fund") was held involving the election
of directors and certain other matters concerning the Fund.
Specifically, shareholder's first approved a new investment management
agreement between the Corporation on behalf of the Fund and John Hancock
Advisers, Inc. on substantially similar terms of the prior investment management
agreement, to take effect on December 22, 1994, the date of the consummation of
Transamerica Fund Management Company by The Berkeley Financial Group. The
shareholder votes tallied were 1,354,007 FOR, 53,647 AGAINST and 81,404
ABSTAINING.
The shareholders next approved new Plans of Distribution for each Class A and
Class B shares of the Fund, also effective on December 22, 1994, and also on
substantially the same terms as the prior Plans of Distribution. The Class A
shareholder votes tallied were 221,760 FOR, 277 AGAINST and 836 ABSTAINING. The
Class B shareholder votes tallied were 1,312,461 FOR, 52,764 AGAINST and 69,842
ABSTAINING.
The shareholders also voted to ratify the selection of Ernst & Young LLP as
independent auditors for the Fund for the fiscal year ending October 31, 1995,
and the votes tallied were 1,383,338 FOR, 46,467 AGAINST and 59,253 ABSTAINING.
Lastly, the following directors were elected to serve until their respective
successors shall become duly elected and qualified, with the votes tabulated as
indicated:
<TABLE>
<CAPTION>
NAME OF DIRECTOR FOR WITHHOLD
- ---------------- --- --------
<S> <C> <C>
Edward J. Boudreau, Jr. ............................... 1,337,139 151,918
James F. Carlin ....................................... 1,338,875 150,183
William H. Cunningham ................................. 1,337,278 151,780
Charles L. Ladner ..................................... 1,339,888 149,170
Leo E. Linbeck, Jr. ................................... 1,339,791 149,268
Patricia P. McCarter .................................. 1,339,993 149,065
Steven R. Pruchansky .................................. 1,337,134 151,923
Norman H. Smith ....................................... 1,339,897 149,162
John P. Toolan ........................................ 1,339,993 149,065
</TABLE>
19
<PAGE> 20
[LOGO]JOHN HANCOCK FUNDS
A GLOBAL INVESTMENT MANAGEMENT FIRM Bulk Rate
101 HUNTINGTON AVENUE BOSTON, MA 02199-7603 U.S. Postage
PAID
Brockton, MA
Permit No. 582
[A 1/2" x 1/2" John Hancock Funds logo in upper left hand corner of the page. A
box sectioned in quadrants with a triangle in upper left, a circle in upper
right, a cube in lower left and a diamond in lower right. A tag line below
reads: "A Global Investment Management Firm."
- --------------------------------------------------------------------------------
This report is for the information of shareholders of the John Hancock Global
Resources 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 caption "Printed on Recycled
Paper."]
JHD 6300A 10/95
12/95
