-------------------------------
The latest report from
your Fund's management team
-------------------------------
ANNUAL REPORT
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Patriot Select
Dividend Trust
JUNE 30, 1999
[LOGO] JOHN HANCOCK FUNDS
A Global Investment Management Firm
<PAGE>
---------------------------------------
TRUSTEES
Edward J. Boudreau, Jr.
Stephen L. Brown
James F. Carlin
William H. Cunningham*
Ronald R. Dion*
Harold R. Hiser, Jr.
Anne C. Hodsdon
Charles L. Ladner
Leo E. Linbeck, Jr.
Steven R. Pruchansky*
Richard S. Scipione
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
Anne C. Hodsdon
President, Chief Operating Officer and
Chief Investment Officer
Osbert M. Hood
Senior Vice President and
Chief Financial Officer
Susan S. Newton
Vice President and Secretary
James J. Stokowski
Vice President and Treasurer
Thomas H. Connors
Vice President and Compliance Officer
INVESTMENT ADVISER
John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199-7603
CUSTODIAN AND TRANSFER AGENT
FOR COMMON SHAREHOLDERS
State Street Bank and Trust
Company 225 Franklin Street
Boston, Massachusetts 02110
TRANSFER AGENT FOR AUCTION
MARKET PREFERRED SHARES
The Chase Manhattan Bank
450 West 33rd Street
New York, New York 10001
LEGAL COUNSEL
Hale and Dorr LLP
60 State Street
Boston, Massachusetts 02109-1803
INDEPENDENT AUDITORS
Deloitte & Touche LLP
200 Berkeley Street
Boston, Massachusetts 02116-5022
Listed New York Stock Exchange Symbol: DIV
For shareholder assistance
refer to page 16
---------------------------------------------
===============================CHAIRMAN'S MESSAGE===============================
DEAR FELLOW SHAREHOLDERS:
The Year 2000 is fast approaching and people around the world are getting ready
to celebrate this historic transition to a new millennium. At John Hancock
Funds, we share the excitement, but we aren't popping the champagne corks just
yet. Rather, we are staying on the course that we set more than two years ago to
ensure that the transition to a new millennium is a smooth one for our
shareholders.
As many already know, the Year 2000 has created more than the prospect of New
Year's festivities of epic proportions. It has also presented the world with a
challenge: making sure that older computers, and any equipment powered by
computer chips, can properly read and process the date "00" as 2000, not 1900.
Much has been written about how the world will weather the change. Some view it
as a non-event, while others see the potential for disruptions. How much
disruption, and for how long, depends on whom you talk to.
- --------------------------------------------------------------------------------
[A 1" x 1" photo of Edward J. Boudreau, Jr., Chairman and Chief Executive
Officer, flush right next to second paragraph.]
- --------------------------------------------------------------------------------
As a company, we recognize that the Year 2000 ("Y2K") phenomenon is an important
issue to be dealt with and we have made it a top priority. Two years ago, John
Hancock Funds put a full-time team of experts on the case and established a
company-wide program to evaluate all computer applications and to modify or
replace those that needed changing.
These modifications and replacements for all mission-critical systems are done
and successfully compliance tested. The rest of 1999 will be spent completing
the few remaining non mission-critical systems, testing with our business
partners and continuing to participate in industry testing. We have also
established additional contingency plans beyond our regular ones to prepare for
any challenges that the Year 2000 might present. In the end, John Hancock will
spend approximately $90-$95 million to ensure we make a successful transition to
the Year 2000.
Throughout 1999, each of our quarterly "Fundamentals" newsletters is featuring
articles with more detailed information on Y2K matters of importance to our
shareholders. I encourage you to read them, or contact one of our Customer
Service Representatives at 1-800-225-5291 for another copy. For your own peace
of mind, we also recommend that you save your 1999 statements, especially those
you receive between October and December, so that you are able to check them
against the first one you receive in 2000. It's a measure of prudence, not
panic. Good record keeping is part of good planning.
No one knows how the dawning of the new millennium will unfold. Although we
cannot make any ironclad assurances, we are confident that the steps we have
taken will provide shareholders with as smooth a transition as possible. Once
that occurs, we will happily raise our glasses to toast the New Year, future
prosperity and our hopes to serve you well into the 2000's.
Sincerely,
/s/Edward J. Boudreau, Jr.
- --------------------------
EDWARD J. BOUDREAU, JR., CHAIRMAN AND CHIEF EXECUTIVE OFFICER
2
<PAGE>
================================================================================
By Gregory K. Phelps, for the Portfolio Management Team
John Hancock Patriot
Select Dividend Trust
Rising interest rates hurt preferred stocks,
--------------------------------------------
confuse utility stocks
----------------------
If it wasn't one thing, it was another that weighed heavily on preferred stocks
during the past year. Preferreds first came under pressure last summer, when
investors worried that a weakening global economy would derail corporate
earnings growth. In the fall, global economic and financial market turmoil
prompted investors to shun nearly all types of bonds and stocks in favor of
ultra-safe U.S. Treasury securities. By December, however, a shift away from
Treasuries was well underway and preferred stocks were a temporary beneficiary
of renewed investor confidence. During the first six months of 1999,
stronger-than-expected U.S. economic growth, coupled with warnings from the
Federal Reserve Board that it was likely to raise interest rates, caused
preferred stocks, which, with their fixed dividend payouts often act like bonds,
to lose ground.
Utility stocks rode a roller coaster during the year, but ended up
posting decent gains for the period. Last fall, they benefited from their
reputation as a safe haven in times of market turmoil. From the end of last year
through March 1999, however, continued strong U.S. growth cooled investors'
enthusiasm for electric common stocks. They gravitated to companies that offered
higher-octane earnings growth. The tide turned again in April, when growing
fears of higher interest rates prompted value hunters to seek attractively
priced utility stocks. From April through mid-June, the Dow Jones Utility Index
hit a series of successive
- --------------------------------------------------------------------------------
[A 3 1/2" x 2 1/2" photo at bottom right side of page of John Hancock Patriot
Select Dividend Trust. Caption below reads "Fund management team members (l-r):
"Sylvester Marquardt, Mark Maloney, Beverly Cleathero and Gregory Phelps."]
- --------------------------------------------------------------------------------
"Utility stocks rode a roller coaster during the year..."
3
<PAGE>
================================================================================
John Hancock Funds - Patriot Select Dividend Trust
"...the Fund has been forced to surrender to calls some of its higher-yielding
preferred stocks..."
- --------------------------------------------------------------------------------
[Table at top left hand column entitled "Top Five Stock Holdings." The first
listing is El Paso Tennessee Pipeline 4.4%, the second is Montana Power 2.7%,
the third Fleet Financial Group 2.7%, the fourth Lehman Brothers Holdings 2.6%
and the fifth South Carolina Electric & Gas 2.3%. A note below the table reads
"As a percentage of net assets on June 30, 1999."]
- --------------------------------------------------------------------------------
record highs. However, utility stocks' good fortunes were cut short by a
dramatic sell-off on the last day of the period. That's when investors grew more
comfortable that interest rates would move only slightly, not dramatically,
higher, and moved away from utility stocks into higher-growth segments of the
market.
Performance review
The poor performance of preferred stocks -which made up roughly two-thirds of
John Hancock Patriot Select Dividend Trust during the past year - resulted in
disappointing returns. For the 12 months ended June 30, 1999, the Fund had a
total return of 1.44% at net asset value. For the same period, the Dow Jones
Utilities Average - which tracks the performance of 15 electric and natural gas
companies - returned 11.78%.
- --------------------------------------------------------------------------------
[Table at bottom of left hand column entitled "Scorecard". The header for the
left column is "Investment" and the header for the right column is "Recent
Performance...and What's Behind the Numbers". The first listing is Montana Power
followed by an up arrow with the phrase "Lifted by rapid growth in telecom
business." The second listing is K N Energy followed by a down arrow with the
phrase "Planned merger falls through." The third listing is Conectiv followed by
an up arrow with the phrase "Utility's telecom business posts fast growth." A
note below the table reads "See `Schedule of Investments.' Investment holdings
are subject to change."]
- --------------------------------------------------------------------------------
For the most part, our preferred-stock holdings performed in line with
the overall preferred-stock segment of the market, although there were some
exceptions. On a positive note, oil and gas producer Lasmo America was boosted
by a surge in energy prices. One holding that significantly lagged the preferred
market was electric company Avista Corp., which was hurt by investors' distaste
for the company's volatile earnings.
Among our best-performing common-stock holdings was Conectiv, which
owns a growing competitive local exchange company that provides low-cost
telephone, data transmission and Internet access service to small and mid-sized
companies. The company recently announced a stock buyback plan and its intention
to sell its electric generating plants. Electric company CMP Group rallied on
news that it was to be taken over, while oil and gas pipeline company K N Energy
dropped in price after its failed attempt to merge with Sempra Energy.
Focus on DRD preferreds
Throughout the period, we maintained our long-term focus on DRD-eligible
preferred stocks, which offer distinct tax advantages to corporate investors. We
also continued to focus on finding securities with good call protection, which
means issuers can't redeem them before a specified date. Call protection is
important because it allows us to hang on to stocks with higher-than-average
dividend yields when interest rates are falling.
A word about dividends
Issuers exercising their call provisions to benefit from falling interest rates
last year caused the supply of DRD-eligible preferred stocks to shrink by about
22% in 1998, according to one
4
<PAGE>
================================================================================
John Hancock Funds - Patriot Select Dividend Trust
- --------------------------------------------------------------------------------
[Bar chart at top of left hand column with heading "Fund Performance". Under the
heading is a note that reads "For the year ended June 30, 1999." The chart is
scaled in increments of 2% with 0% at the bottom and 12% at the top. The first
bar represents the 1.44% total return for John Hancock Patriot Select Dividend
Trust. The second bar represents the 11.78% total return for Dow Jones Utilities
Average. A note below the chart reads "The total return for John Hancock Patriot
Select Dividend Trust is at net asset value with all distributions reinvested.
The Dow Jones Utilities Average is an unmanaged index that measures the
performance of the utility industry in the United States."]
- --------------------------------------------------------------------------------
estimate. So far in 1999, issuers have announced plans to call an additional $1
billion of preferred stocks in the near future. From a technical standpoint,
calls largely have been beneficial for the DRD-eligible preferred market because
they have reduced available supply. By the same token, however, the Fund has
been forced to surrender to calls some of its higher-yielding preferred stocks
and reinvest the proceeds in securities that offered lower dividend yields. The
resulting downward pressure on the Fund's dividend caused the Fund to reduce its
monthly dividend in June.
Redeploying assets
In many cases, we used the proceeds from preferred stocks called away from us to
buy other, well call-protected - albeit, lower-yielding - preferred stocks. We
also looked for opportunities to buy attractively priced utility common stocks.
In January, for example, utility-stock yields were relatively high - although
still lower than the preferred stocks we had called away. Historically speaking,
utility common stocks' price-to-earnings ratios (P/Es) have run about 65% to 70%
of the P/E for the Standard & Poor's 500 Index. P/Es measure how much you're
paying for earnings. At the end of the period, the P/E of the average utility
stock was only about 50% of the S&P Index. That's the cheapest utility stocks
have been in about 20 years.
Outlook
We're optimistic about the prospects for preferred stocks and utility common
stocks. From a technical standpoint, the continued shrinking supply of
DRD-eligible preferred stocks should work in that group's favor from a price
perspective. To the extent that investors become concerned about the
sustainability of corporate earnings growth for the stock market as a whole,
utility stocks could benefit. Evidence of a slowing U.S. economy would likely
stir demand for utility stocks, especially given their relative cheapness. That,
plus ongoing industry consolidation, a favorable regulatory environment and
their strong financial shape should, in our view, position utility common stocks
to perform well in the months to come.
- --------------------------------------------------------------------------------
This commentary reflects the views of the portfolio management team through the
end of the Fund's period discussed in this report. Of course, the team's views
are subject to change as market and other conditions warrant.
"We're optimistic about the prospects for preferred stocks and utility common
stocks."
5
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Select Dividend Trust
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 June 30, 1999. You'll also
find the net asset value per share as of that date.
Statement of Assets and Liabilities
June 30, 1999
- --------------------------------------------------------------------------------
Assets:
Investments at value - Note C:
Preferred stocks (cost - $146,273,224).................... $150,336,331
Common stocks (cost - $63,304,824) ....................... 72,856,559
Short-term investments (cost - $3,241,006) ............... 3,241,006
-------------
226,433,896
Receivable for investments sold ............................ 3,014,806
Dividends receivable ....................................... 984,439
Receivable from John Hancock Advisers, Inc.
and affiliates ............................................ 55,599
Other assets ............................................... 35,286
-------------
Total Assets ........................ 230,524,026
------------------------------------------------------
Liabilities:
AMPS dividend payable ...................................... 111,417
Common share dividend payable .............................. 94,504
Payable for investments purchased .......................... 970,742
Federal taxes payable - Note A ............................. 798,703
Accounts payable and accrued expenses ...................... 349,493
-------------
Total Liabilities ................... 2,324,859
------------------------------------------------------
Net Assets:
Auction Market Preferred Shares Stock
Series A (AMPS) - Without par value, unlimited
number of shares of beneficial interest authorized,
700 shares issued, liquidation preference of
$100,000 per share - Note A ............................... 70,000,000
-------------
Common Shares - Without par value, unlimited
number of shares of beneficial interest authorized,
9,885,027 shares issued and outstanding ................... 141,881,450
Accumulated net realized gain on investments ............... 408,874
Net unrealized appreciation of investments ................. 13,617,180
Undistributed net investment income ........................ 2,291,663
-------------
Net Assets Applicable to Common Shares:
($16.00 per share based on 9,885,027
shares outstanding) ....................................... 158,199,167
-------------
Net Assets .......................... $228,199,167
======================================================
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.
Statement of Operations
Year ended June 30, 1999
- --------------------------------------------------------------------------------
Investment Income:
Dividends .................................................. $15,105,878
Interest ................................................... 147,934
-------------
15,253,812
-------------
Expenses:
Investment management fee - Note B ........................ 1,881,270
Administration fee - Note B ............................... 352,738
AMPS and auction fees ..................................... 182,624
Federal excise tax ........................................ 138,978
Miscellaneous ............................................. 83,334
Custodian fee ............................................. 64,191
Auditing fee .............................................. 54,000
Printing and postage ...................................... 40,152
Transfer agent fee ........................................ 31,885
Trustees' fees ............................................ 15,324
Legal fees ................................................ 1,253
-------------
Total Expenses ...................... 2,845,749
------------------------------------------------------
Net Investment Income ............... 12,408,063
------------------------------------------------------
Realized and Unrealized Gain on Investments:
Net realized gain on investments sold (net of federal
income taxes of $798,703) ................................. 2,038,353
Change in net unrealized appreciation/depreciation
of investments ............................................ (9,897,925)
-------------
Net Realized and Unrealized
Loss on Investments ................. (7,859,572)
------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations ........... 4,548,491
======================================================
Distribution to AMPS
Shareholders ........................ (2,885,045)
------------------------------------------------------
Net Increase in Net Assets
Applicable to Common
Shareholders Resulting from
Operations Less AMPS
Distributions ....................... $1,663,446
======================================================
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Select Dividend Trust
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
--------------------------------------
1998 1999
--------------- -------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From Operations:
Net investment income......................................................................... $13,617,219 $12,408,063
Net realized gain on investments sold ........................................................ 4,453,059 2,038,353
Change in net unrealized appreciation/depreciation of investments ............................ 11,609,254 (9,897,925)
-------------- -------------
Net Increase in Net Assets Resulting from Operations ........................................ 29,679,532 4,548,491
-------------- -------------
Distributions to Shareholders:
AMPS ($4,143 and $4,121 per share, respectively) - Note A ............................. (2,900,356) (2,885,045)
Common Shares - Note A
Dividends from net investment income ($1.2371 and $1.1264 per share, respectively) .......... (12,228,627) (11,134,302)
Distributions in excess of net investment income (none and $0.1107 per share, respectively) . - (1,094,209)
-------------- -------------
Total Distributions to Shareholders ........................................................ (15,128,983) (15,113,556)
-------------- -------------
Net Assets:
Beginning of period .......................................................................... 224,213,683 238,764,232
-------------- -------------
End of period (including undistributed net investment income of $1,611,284 and
$2,291,663, respectively) ................................................................... $238,764,232 $228,199,167
============== =============
Analysis of Common Shareholder Transactions:
YEAR ENDED JUNE 30,
-----------------------------------------------
1998 1999
-----------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------- --------- ---------- ----------
Shares outstanding, beginning of period ....................................... 9,885,027 $139,427,509 9,885,027 $140,538,208
Reclassification of net realized long-term gains retained on investments sold
(net of federal income taxes of $643,352 and $798,703, respectively) - Note D - 1,194,797 - 1,483,305
Reclassification of capital accounts - Note D.................................. - (84,098) - (140,063)
--------- ------------ ---------- ------------
Shares outstanding, end of period ............................................. 9,885,027 $140,538,208 9,885,027 $141,881,450
</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 distributions paid
to shareholders. The footnote illustrates any reclassification of capital
amounts and the number of shares outstanding at the beginning and end of the
period for the last two periods, along with the corresponding dollar value.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Select Dividend Trust
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each
period indicated, investment returns, key ratios and supplemental data are
listed as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
----------------------------------------------------------
1995 1996 1997 1998 1999
-------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
Common Shares
Per Share Operating Performance
Net Asset Value, Beginning of Period.................................. $13.17 $14.56 $15.05 $15.60 $17.07
-------- --------- -------- -------- --------
Net Investment Income ................................................ 1.62 1.50 1.42 1.38 1.26
Net Realized and Unrealized Gain (Loss) on Investments ............... 1.31 0.53 0.65 1.62 (0.80)
-------- --------- -------- -------- --------
Total from Investment Operations .................................... 2.93 2.03 2.07 3.00 0.46
-------- --------- -------- -------- --------
Less Distributions:
Dividends to AMPS Shareholders ....................................... (0.30) (0.30) (0.28) (0.29) (0.29)
Distributions to Common Shareholders from Net Investment Income ...... (1.24) (1.13) (1.24) (1.24) (1.13)
Distributions to Common Shareholders in Excess of Net Investment Income - - - - (0.11)
Distributions to Common Shareholders from Net Realized Short-Term Gain
on Investments ...................................................... - (0.11) - - -
------- --------- -------- -------- --------
Total Distributions ................................................. (1.54) (1.54) (1.52) (1.53) (1.53)
------- --------- -------- -------- --------
Net Asset Value, End of Period ....................................... $14.56 $15.05 $15.60 $17.07 $16.00
======= ========= ======== ======== ========
Per Share Market Value, End of Period ................................ $13.875 $14.250 $14.313 $15.500 $13.813
Total Investment Return at Market Value .............................. 19.73% 11.83% 9.38% 17.26% (3.56%)
Ratios and Supplemental Data
Net Assets Applicable to Common Shares, End of Period (000s omitted) $143,914 $148,731 $154,214 $168,764 $158,199
Ratio of Expenses to Average Net Assets (1) .......................... 1.96% 1.85% 1.81% 1.68% 1.72%
Ratio of Net Investment Income to Average Net Assets (2) ............. 12.20% 10.00% 9.33% 8.38% 7.51%
Portfolio Turnover Rate .............................................. 107% 49% 47% 41% 30%
Senior Securities
Total AMPS Outstanding (000s omitted) ............................... $70,000 $70,000 $70,000 $70,000 $70,000
Asset Coverage per Unit (3) ......................................... $305,754 $306,112 $318,281 $338,876 $329,508
Involuntary Liquidation Preference per Unit (4) ..................... $100,000 $100,000 $100,000 $100,000 $100,000
Approximate Market Value per Unit (4) ............................. $100,000 $100,000 $100,000 $100,000 $100,000
</TABLE>
(1) Ratios calculated on the basis of expenses applicable to the common shares
relative to the average net assets of common shares. Without the exclusion
of preferred shares, the ratio of expenses would have been 1.29%, 1.25%,
1.24%, 1.18% and 1.21%, respectively.
(2) Ratios calculated on the basis of net investment income applicable to common
shares relative to the average net assets of common shares. Without the
exclusion of preferred shares, the ratio of net investment income would have
been 7.96%, 6.79%, 6.36%, 5.86% and 5.28%, respectively.
(3) Calculated by subtracting the Fund's total liabilities (not including the
AMPS) from the Fund's total assets and dividing such amount by the number of
AMPS outstanding as of the applicable 1940 Act Evaluation Date.
(4) Plus accumulated and unpaid dividends.
The Financial Highlights summarizes the impact of the following factors on a
single share for each period indicated: net investment income, gains (losses),
distributions and total investment return of the Fund. It shows how the Fund's
net asset value for a share has changed since the end of the previous period.
Additionally, important relationships between some items presented in the
financial statements are expressed in ratio form.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Select Dividend Trust
Schedule of Investments
June 30, 1999
- --------------------------------------------------------------------------------
The Schedule of Investments is a complete list of all securities owned by the
Patriot Select Dividend Trust on June 30, 1999. It's divided into three main
categories: preferred stocks, common stocks and short-term investments. The
stocks are further broken down by industry group. Short-term investments, which
represent the Fund's "cash" position, are listed last.
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
PREFERRED STOCKS
Agricultural Operations (1.75%)
Ocean Spray Cranberries, Inc., 6.25%,
Ser A (R).................................. 40,000 $4,000,000
--------------
Automobile/Trucks (2.07%)
General Motors Corp., 9.12%, Depositary
Shares, Ser G ............................. 170,000 4,717,500
--------------
Banks - Foreign (0.66%)
Australia and New Zealand Banking Group
Ltd., 9.125% (Australia) .................. 55,000 1,502,187
--------------
Banks - United States (6.96%)
ABN AMRO North America, Inc., 6.59%,
Ser H (R) ................................ 2,000 2,040,000
Chase Manhattan Corp., 10.84%, Ser C ...... 77,300 2,217,544
Fleet Financial Group, Inc., 6.75%, Ser VI 119,000 6,069,000
Fleet Financial Group, Inc., 9.35%,
Depositary Shares ........................ 165,000 4,320,937
Republic New York Corp., $2.8575 .......... 25,000 1,243,750
--------------
15,891,231
--------------
Broker Services (7.73%)
Bear Stearns Companies, Inc., 5.49%,
Ser G .................................... 116,400 4,896,075
Lehman Brothers Holdings, Inc., 5.67%,
Depositary Shares, Ser D ................. 143,689 5,891,249
Merrill Lynch & Co., Inc., 9.00%,
Depositary Shares, Ser A ................. 107,650 3,316,966
Morgan Stanley Group, Inc., 7.75%,
Depositary Shares ........................ 66,000 3,547,500
--------------
17,651,790
--------------
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
Diversified Operations (0.31%)
Grand Metropolitan Delaware, L.P., 9.42%,
Gtd Ser A ................................ 25,000 $698,437
--------------
Finance (5.37%)
Citigroup, Inc., 6.213%, Ser G ............ 44,000 2,178,000
Citigroup, Inc., 6.231%,
Depositary Shares, Ser H ................. 92,400 4,550,700
Citigroup, Inc., 8.40%,
Depositary Shares, Ser K ................. 165,000 4,434,375
SI Financing Trust I, 9.50%, Gtd Pfd
Sec & Purchase Contract .................. 41,700 1,092,019
--------------
12,255,094
--------------
Leasing Companies (1.20%)
AMERCO, 8.50%, Ser A ...................... 105,000 2,730,000
--------------
Oil & Gas (4.26%)
Anadarko Petroleum Corp., 5.46%,
Depositary Shares ........................ 5,000 427,500
Apache Corp., 5.68%,
Depositary Shares, Ser B ................. 30,924 2,814,084
Lasmo America Ltd., 8.15% (R) ............. 20,000 2,062,500
PennzEnergy Co., 6.49%, Ser A ............. 50,000 4,425,000
--------------
9,729,084
--------------
Utilities (35.57%)
Alabama Power Co., 5.20% .................. 225,000 5,062,500
Avista Corp., $1.24, Ser L, Conv .......... 56,000 952,000
Baltimore Gas & Electric Co., 6.70%,
Ser 1993 ................................. 10,000 1,076,250
Baltimore Gas & Electric Co., 6.99%,
Ser 1995 ................................. 40,000 4,425,000
Boston Edison Co., 4.25% .................. 41,479 3,069,446
El Paso Tennessee Pipeline Co., 8.25%,
Ser A .................................... 183,500 9,954,875
Entergy Gulf States Capital I, 8.75%,
Ser A .................................... 87,100 2,199,275
Florida Power & Light Co., 6.75%, Ser U ... 25,000 2,706,250
Hawaiian Electric Industries Capital Trust I,
8.36% .................................... 50,000 1,268,750
Indianapolis Power & Light Co., 5.65% ..... 15,000 1,432,500
MCN Michigan, L.P., 9.375%, Ser A ......... 50,000 1,262,500
Massachusetts Electric Co., 6.99% ......... 13,500 1,475,719
Monongahela Power Co., 7.73%, Ser L ....... 44,000 4,763,000
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Select Dividend Trust
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
Utilities (continued)
Montana Power Co., $6.875 ................. 36,500 $3,957,969
PSI Energy, Inc., 6.875% .................. 48,000 5,187,000
Public Service Electric & Gas Co., 6.92% .. 14,625 1,578,586
Puget Sound Energy, Inc., 7.45%, Ser II ... 165,140 4,541,350
Sierra Pacific Power Capital I, 8.60% ..... 30,000 774,375
Sierra Pacific Power Co., 7.80%, Ser 1
(Class A) ................................ 183,600 4,980,150
South Carolina Electric & Gas Co., 6.52% .. 50,000 5,300,000
Southern Union Financing I, 9.48% ......... 59,000 1,500,813
TDS Capital Trust I, 8.50% ................ 130,300 3,257,500
TDS Capital Trust II, 8.04% ............... 20,000 491,250
Texas Utilities Electric Co., $1.875,
Depositary Shares, Ser A ................. 102,000 2,728,500
Texas Utilities Electric Co., $7.98 ....... 29,200 3,241,200
UtiliCorp Capital, L.P., 8.875%, Ser A .... 70,000 1,750,000
Virginia Electric & Power Co., $6.98 ...... 10,500 1,139,250
Virginia Electric & Power Co., $7.05 ...... 10,000 1,085,000
--------------
81,161,008
--------------
TOTAL PREFERRED STOCKS
(Cost $146,273,224) (65.88%) 150,336,331
-------- --------------
COMMON STOCKS
Utilities (31.93%)
Alliant Energy Corp. ...................... 158,000 4,483,250
Ameren Corp. .............................. 30,000 1,151,250
BEC Energy ................................ 70,000 2,887,500
CMP Group, Inc. ........................... 36,250 949,297
Central Hudson Gas & Electric Corp. ....... 17,000 714,000
Conectiv, Inc. (Class A) .................. 33,350 1,400,700
Conectiv, Inc. ............................ 99,500 2,431,531
Consolidated Edison, Inc. ................. 50,000 2,262,500
DPL, Inc. ................................. 237,000 4,354,875
DTE Energy Co. ............................ 89,900 3,596,000
Dominion Resources, Inc. .................. 46,000 1,992,375
Duke Energy Corp. ......................... 22,500 1,223,437
Eastern Enterprises ....................... 62,900 2,500,275
Edison International ...................... 58,000 1,551,500
Florida Progress Corp. .................... 20,000 826,250
Hawaiian Electric Industries, Inc. ........ 21,900 777,450
K N Energy, Inc. .......................... 42,500 568,437
KeySpan Corp. ............................. 45,000 1,186,875
LG&E Energy Corp. ......................... 3,150 66,150
MCN Energy Group, Inc. .................... 80,000 1,660,000
Montana Power Co. ......................... 88,400 6,232,200
Nevada Power Co. .......................... 75,000 1,875,000
New England Electric System ............... 87,950 4,408,494
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
Utilities (continued)
Northern States Power Co. ................. 50,000 $1,209,375
OGE Energy Corp. .......................... 80,000 1,900,000
PacifiCorp. ............................... 54,000 992,250
Potomac Electric Power Co. ................ 92,800 2,731,800
Puget Sound Energy, Inc. .................. 170,500 4,092,000
Reliant Energy, Inc. ...................... 94,700 2,616,087
Sempra Energy ............................. 31,000 701,375
Southern Co. .............................. 57,000 1,510,500
TECO Energy, Inc. ......................... 116,000 2,639,000
UtiliCorp United, Inc. .................... 105,000 2,552,813
WPS Resources Corp. ....................... 23,000 690,000
Western Resources, Inc. ................... 79,700 2,122,013
--------------
TOTAL COMMON STOCKS
(Cost $63,304,824) (31.93%) 72,856,559
-------- --------------
INTEREST PAR VALUE
RATE (000s OMITTED)
----------- ----------------
SHORT-TERM INVESTMENTS
Commercial Paper (1.42%)
Chevron USA, Inc.,
Due 07-01-99 ................ 5.50% $3,241 3,241,006
--------------
TOTAL SHORT-TERM INVESTMENTS (1.42%) 3,241,006
------- --------------
TOTAL INVESTMENTS (99.23%) 226,433,896
------- --------------
OTHER ASSETS AND LIABILITIES, NET (0.77%) 1,765,271
------- --------------
TOTAL NET ASSETS (100.00%) $228,199,167
======== ==============
(R) These securities are exempt from registration under rule 144A of
the Securities Act of 1933. Such securities may be resold, normally to
qualified institutional buyers, in transactions exempt from
registration. Rule 144A securities amounted to $8,102,500 or 3.55% of
net assets as of June 30, 1999.
Parenthetical disclosure of a foreign country in the security description
represents country of a foreign issuer; however, security is U.S. dollar
denominated.
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
10
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==========================NOTES TO FINANCIAL STATEMENTS=========================
John Hancock Funds - Patriot Select Dividend Trust
NOTE A -
ACCOUNTING POLICIES
John Hancock Patriot Select Dividend Trust (the "Fund") is a diversified
closed-end management investment company, registered under the Investment
Company Act of 1940.
Significant accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Securities in the Fund's portfolio are valued on the
basis of market quotations, valuations provided by independent pricing services
or at fair value as determined in good faith in accordance with procedures
approved by the Trustees. Short-term debt investments maturing within 60 days
are valued at amortized cost, which approximates market value.
INVESTMENT TRANSACTIONS Investment transactions are recorded as of the date of
purchase, sale or maturity. Net realized gains and losses on sales of
investments are determined on the identified cost basis.
FEDERAL INCOME TAXES The Fund qualifies as a "regulated investment company" by
complying with the applicable provisions of the Internal Revenue Code and will
not be subject to federal income tax on taxable income which is distributed to
shareholders.
DIVIDENDS, DISTRIBUTIONS AND INTEREST Dividend income on investment securities
is recorded on the ex-dividend date. Interest income on investment securities is
recorded on the accrual basis.
The Fund records all dividends and distributions to shareholders from
net investment income and realized gains on the ex-dividend date. Such
distributions are determined in conformity with federal income tax regulations.
Due to permanent book/tax differences in accounting for certain transactions,
this has the potential for treating certain distributions as return of capital
as opposed to distributions of net investment income or realized capital gains.
The Fund has adjusted for the cumulative effect of such permanent book/tax
differences through June 30, 1999, which has no effect on the Fund's net assets,
net investment income or net realized gains.
USE OF ESTIMATES The preparation of these financial statements in accordance
with generally accepted accounting principles incorporates estimates made by
management in determining the reported amounts of assets, liabilities, revenues
and expenses of the Fund. Actual results could differ from these estimates.
AUCTION MARKET PREFERRED SHARES SERIES A (AMPS) The Fund issued 700 shares of
Auction Market Preferred Shares Series A (AMPS) on August 30, 1990 in a public
offering. The underwriting discount was recorded as a reduction of the capital
of the Common Shares. Dividends on the AMPS, which accrue daily, are cumulative
at a rate which was established at the offering of the AMPS and has been reset
every 49 days thereafter by an auction. Dividend rates ranged from 3.57% to
4.30% during the year ended June 30, 1999.
The AMPS are redeemable at the option of the Fund, at a redemption
price equal to $100,000 per share, plus accumulated and unpaid dividends on any
dividend payment date. The AMPS are also subject to mandatory redemption at a
redemption price equal to $100,000 per share, plus accumulated and unpaid
dividends, if the Fund is in default on its asset coverage requirements with
respect to the AMPS. If the dividends on the AMPS shall remain unpaid in an
amount equal to two full years' dividends, the holders of the AMPS as a class
have the right to elect a majority of the Board of Trustees. In general, the
holders of the AMPS and the Common Shares have equal voting rights of one vote
per share, except that the holders of the AMPS, as a class, vote to elect two
members of the Board of Trustees, and separate class votes are required on
certain matters that affect the respective interests of the AMPS and Common
Shares. The AMPS have a liquidation preference of $100,000 per share, plus
accumulated and unpaid dividends. The Fund is required to maintain certain asset
coverage with respect to the AMPS, as defined in the Fund's By-Laws.
NOTE B -
MANAGEMENT FEE AND TRANSACTIONS
WITH AFFILIATES AND OTHERS
Under the present investment management contract, the Fund pays a monthly
management fee to John Hancock Advisers, Inc. (the "Adviser"), a wholly owned
subsidiary of The Berkeley Financial Group, Inc., for a continuous investment
program equivalent, on an annual basis, to the sum of 0.80% of the Fund's
average weekly net assets.
11
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==========================NOTES TO FINANCIAL STATEMENTS=========================
John Hancock Funds - Patriot Select Dividend Trust
The Fund has entered into an administrative agreement with the Adviser under
which the Adviser oversees the custodial, auditing, valuation, accounting,
legal, stock transfer and dividend disbursing services and maintains Fund
communications services with the shareholders. The Adviser receives a monthly
administration fee equivalent, on an annual basis, to the sum of 0.15% of the
Fund's average weekly net assets.
Each unaffiliated Trustee is entitled, as compensation for his or her
services, to an annual fee plus remuneration for attendance at various meetings.
Mr. Edward J. Boudreau, Jr., Mr. Stephen L. Brown, Ms. Anne C. Hodsdon
and Mr. Richard S. Scipione are directors and/or officers of the Adviser and/or
its affiliates, as well as Trustees of the Fund. The compensation of
unaffiliated Trustees is borne by the Fund. The unaffiliated Trustees may elect
to defer, for tax purposes, their receipt of this compensation under the John
Hancock Group of Funds Deferred Compensation Plan. The Fund makes investments
into other John Hancock funds, as applicable, to cover its liability for the
deferred compensation. Investments to cover the Fund's deferred compensation
liability are recorded on the Fund's books as an other asset. The deferred
compensation liability and the related other asset are always equal and are
marked to market on a periodic basis to reflect any income earned by the
investment as well as any unrealized gains or losses.
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 securities, during the year
ended June 30, 1999, aggregated $68,975,443 and $70,667,305, respectively. There
were no purchases or sales of obligations of the U.S. government and its
agencies during the year ended June 30, 1999.
The cost of investments owned at June 30, 1999 (including the
short-term investments) for federal income tax purposes was $212,966,041. Gross
unrealized appreciation and depreciation of investments aggregated $18,215,480
and $4,747,625, respectively, resulting in net unrealized appreciation of
$13,467,855.
NOTE D -
RECLASSIFICATION OF CAPITAL ACCOUNTS
During the year ended June 30, 1999, the Fund has reclassified amounts to
reflect an increase in undistributed net investment income of $3,385,872, a
decrease in accumulated net realized gain on investments of $3,245,809, and a
decrease in capital paid-in of $140,063. This represents the amount necessary to
report these balances on a tax basis, excluding certain temporary differences,
as of June 30, 1999. In addition, pursuant to Internal Revenue Code Section 852
(b)(3)(D), the Fund has reclassified $1,483,305 from accumulated net realized
gain on investments to capital paid-in. This amount represents the retained
long-term capital gains, net of federal income tax payable. 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 book/tax differences in accounting for deferred
compensation and federal excise tax. The calculation of net investment income
per share in the financial highlights excludes these adjustments.
12
<PAGE>
================================================================================
John Hancock Funds - Patriot Select Dividend Trust
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders
John Hancock Patriot Select Dividend Trust
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of John Hancock Patriot Select Dividend Trust (the
"Fund") as of June 30, 1999, the related statement of operations for the year
then ended, the statements of changes in net assets for the years ended June 30,
1999 and 1998, and the financial highlights for each of the years in the
five-year period ended June 30, 1999. 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 at June 30,
1999 by correspondence with the custodian and brokers; where replies were not
received from brokers, we performed other auditing procedures. 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, such financial statements and financial highlights
present fairly, in all material respects, the financial position of the Fund at
June 30, 1999, the results of its operations, the changes in its net assets, and
its financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 6, 1999
TAX INFORMATION NOTICE (UNAUDITED)
For federal income tax purposes, the following information is furnished with
respect to the dividends of the Trust paid during its taxable year ended June
30, 1999.
All the dividends paid for the fiscal year are taxable as ordinary
income. Distributions to preferred and common shareholders were 100.00%
qualified for the dividends received deduction available to corporations.
Shareholders will be mailed a 1999 U.S. Treasury Department Form
1099-DIV in January 2000. This will reflect the tax character of all
distributions for calendar year 1999.
The Fund has chosen to retain (and pay federal corporate income tax on)
a portion of net long-term capital gains for its fiscal period ended June 30,
1999.
Within 60 days of the Fund's fiscal year end, the Fund will mail to its
shareholders of record on June 30, 1999 a designation, on Internal Revenue
Service (IRS) Form 2439, of that portion of the undistributed capital gains for
the year to be included in a shareholder's 1999 taxable income as long-term
capital gains. Form 2439 will also show their portion of the tax paid by the
Fund on these gains. The portion of the taxes paid may be credited against any
federal income tax due. These gains will not be reported on Form 1099-DIV, the
form on which the Fund would ordinarily report income taxable to a shareholder.
To reflect the Fund's retention of capital gains and payment of the
related tax and their pass through to shareholders as described above,
shareholders are entitled to increase the adjusted tax basis of their shares by
the excess of the capital gains included in their income over their share of the
tax paid by the Fund on such gains as reported on Form 2439, as provided in
Internal Revenue Code (IRC) Section 852(b)(3).
Trustees for Individual Retirement Accounts (IRAs) and organizations
which are exempt from federal income tax under IRC Section 501(a) (and to which
IRC Section 511 does not apply) should claim a refund by filing Form 990-T with
the IRS. Record owners who are not the actual owners (nominees) will also be
required to report the amounts shown on Form 2439 to the actual owners within 90
days of the Fund's fiscal year (on or before September 30, 1999) and the IRS in
13
<PAGE>
================================================================================
John Hancock Funds - Patriot Select Dividend Trust
the manner required by the instructions of Form 2439. A trustee or custodian of
an IRA should not send a copy of Form 2439 to the owner of the IRA.
State tax consequences may differ from those described above and may
vary from state to state. Therefore, shareholders should consult their state tax
advisers for specific information regarding their particular situations.
Non-resident aliens may also have different tax consequences and should consult
their tax adviser.
14
<PAGE>
================================================================================
John Hancock Funds - Patriot Select Dividend Trust
INVESTMENT OBJECTIVE AND POLICY
The Fund's investment objective is to provide high current income, consistent
with modest growth of capital for holders of its common shares. The Fund will
pursue its objective by investing in a diversified portfolio of dividend-paying
preferred and common equity securities.
The Fund's non-fundamental investment policy, with respect to the
quality of ratings of its portfolio investments, was changed by a vote of the
Fund's Trustees on September 13, 1994. The new policy, which became effective
October 15, 1994, stipulates that the preferred stocks and debt obligations in
which the Fund will invest will be rated investment grade (at least "BBB" by S&P
or "Baa" by Moody's) at the time of investment or will be preferred stocks of
issuers of investment grade senior debt, some of which may have speculative
characteristics, or, if not rated, will be of comparable quality as determined
by the Adviser. The Fund will invest in common stocks of issuers whose senior
debt is rated investment grade or, in the case of issuers who have no rated
senior debt outstanding, whose senior debt is considered by the Adviser to be of
comparable quality.
DIVIDEND REINVESTMENT PLAN
The Fund provides shareholders with a Dividend Reinvestment Plan ("the Plan")
which offers the opportunity to earn compounded yields. Each holder of Common
Shares will automatically have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts, 02210, as agent for the common shareholders unless an election is
made to receive cash. Holders of Common Shares who elect not to participate in
the Plan will receive all distributions in cash, paid by check, mailed directly
to the shareholder of record (or if the Common Shares are held in street or
other nominee name then to the nominee) by the Plan Agent, as dividend
disbursing agent. Shareholders whose shares are held in the name of a broker or
nominee should contact the broker or nominee to determine whether and how they
may participate in the Plan.
If the Fund declares a dividend payable either in Common Shares or in
cash, nonparticipants will receive cash and participants in the Plan will
receive the equivalent in Common Shares. If the market price of the Common
Shares on the payment date for the dividend is equal to or exceeds their net
asset value as determined on the payment date, participants will be issued
Common Shares (out of authorized but unissued shares) at a value equal to the
higher of net asset value or 95% of the market price. If the net asset value
exceeds the market price of the Common Shares at such time, or if the Board of
Trustees declares a dividend payable only in cash, the Plan Agent will, as agent
for Plan participants, buy shares in the open market, on the New York Stock
Exchange or elsewhere, for the participants' accounts. Such purchases will be
made promptly after the payable date for such dividend and, in any event, prior
to the next ex-dividend date, except where necessary to comply with federal
securities laws. If, before the Plan Agent has completed its purchases, the
market price exceeds the net asset value of the Common Shares, the average per
share purchase price paid by the Plan Agent may exceed the net asset value of
the Common Shares, resulting in the acquisition of fewer shares than if the
dividend had been paid in shares issued by the Fund.
Participants in the Plan may withdraw from the Plan upon written notice
to the Plan Agent. Such withdrawal will be effective immediately if received not
less than ten days prior to a dividend record date; otherwise, it will be
effective for all subsequent dividend record dates. When a participant withdraws
from the Plan or upon termination of the Plan as provided below, certificates
for whole Common Shares credited to his or her account under the Plan will be
issued and a cash payment will be made for any fraction of a Share credited to
such account.
The Plan Agent maintains each shareholder's account in the Plan and
furnishes monthly written confirmations of all transactions in the accounts,
including information needed by the shareholders for personal and tax records.
Common Shares in the account of each Plan participant will be held by the Plan
Agent in non-certificated form in the name of the participant. Proxy material
relating to the shareholder's meetings of the Fund will include those shares
purchased as well as shares held pursuant to the Plan.
There will be no brokerage charges with respect to Common Shares issued
directly by the Fund. However, each participant will pay a pro rata share of
brokerage commissions incurred with respect to the Plan
15
<PAGE>
================================================================================
John Hancock Funds - Patriot Select Dividend Trust
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. In each case, the cost per share of the shares purchased for
each participant's account will be the average cost, including brokerage
commissions, of any shares purchased on the open market plus the cost of any
shares issued by the Fund. There are no other charges to participants for
reinvesting dividends or capital gain distributions, except for certain
brokerage commissions, as described above.
The automatic reinvestment of dividends and distributions will not
relieve articipants of any federal income tax that may be payable or required to
be withheld on such dividends or distributions. Participants under the Plan will
receive tax information annually. The amount of dividend to be reported on Form
1099-DIV should be (1) in the case of shares issued by the Fund, the fair market
value of such shares on the dividend payment date and (2) in the case of shares
purchased by the Plan agent in the open market, the amount of cash used to
purchase them (including the amount of cash allocated to brokerage commissions
paid on such purchases).
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Fund reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all shareholders of the Fund at least 90 days before the record
date for the dividend or distribution. The Plan may be amended or terminated by
the Plan Agent at least 90 days after written notice to all shareholders of the
Fund. All correspondence or additional information concerning the Plan should be
directed to the Plan Agent, State Street Bank and Trust Company, at P.O. Box
8209, Boston, Massachusetts 02266-8209 (telephone 1-800-426-5523).
YEAR 2000 COMPLIANCE
The Adviser and the Fund's service providers are taking steps to address any
year 2000-related computer problems. However, there is some risk that these
problems could disrupt the Fund's operations or financial markets generally.
SHAREHOLDER COMMUNICATION AND ASSISTANCE
If you have any questions concerning John Hancock Patriot Select Dividend Trust,
we will be pleased to assist you. If you hold shares in your own name and not
with a brokerage firm, please address all notices, correspondence, questions or
other communications regarding the Fund to the transfer agent at:
State Street Bank and Trust Company
P.O. Box 8200
Boston, Massachusetts 02266-8200
Telephone: (800) 426-5523
If your shares are held with a brokerage firm, you should contact that firm,
bank or other nominee for assistance.
SHAREHOLDER MEETING
On March 18, 1999, the Annual Meeting of John Hancock Patriot Select Dividend
Trust (the "Fund") was held to elect five Trustees and to ratify the actions of
the Trustees in selecting independent auditors for the Fund.
The common shareholders elected the following Trustees to serve until
their respective successors are duly elected and qualified, with the votes
tabulated as follows:
WITHHELD
FOR AUTHORITY
--- ---------
Stephen L. Brown 8,088,225 128,866
James F. Carlin 8,095,348 121,742
William H. Cunningham 8,086,031 131,060
John P. Toolan 8,084,740 132,351
The preferred shareholders elected Harold R. Hiser, Jr. to serve until
his successor is duly elected and qualified with votes tabulated as follows: 398
FOR and 0 WITHHELD AUTHORITY.
The shareholders also ratified the Trustees' selection of Deloitte &
Touche LLP as the Fund's independent auditors for the fiscal year ended June 30,
1999, with the votes tabulated as follows: 8,052,096 FOR, 35,946 AGAINST and
129,446 ABSTAINING.
16
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====================================NOTES=======================================
John Hancock Funds - Patriot Select Dividend Trust
17
<PAGE>
====================================NOTES=======================================
John Hancock Funds - Patriot Select Dividend Trust
18
<PAGE>
====================================NOTES=======================================
John Hancock Funds - Patriot Select Dividend Trust
19
<PAGE>
================================================================================
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