---------------------------
The latest report from your
Fund's management team
---------------------------
ANNUAL REPORT
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Patriot Premium
Dividend Fund I
SEPTEMBER 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 DARTS
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
Listed New York Stock Exchange Symbol: PDF
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.
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 2000s.
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
Premium Dividend Fund I
U.S. rate concerns hamper preferred stocks;
-------------------------------------------
utility stocks fare only slightly better
----------------------------------------
Fears of higher U.S. interest rates weighed heavily on preferred stocks, the
larger of two main components of John Hancock Patriot Premium Dividend Fund I.
Because they have fixed dividends, preferred stocks generally are quite
sensitive to interest-rate changes, falling in price when rates rise and vice
versa.
At the beginning of the Fund's fiscal year last October, however,
rising interest rates weren't really the problem; lack of demand was. Amid
1998's global economic turmoil, investors shunned most fixed-income-like
securities - including preferred stocks - in favor of U.S. Treasury bonds,
despite the fact that rates were on the decline at the time.
Interest-rate jitters first began to hamper preferred stocks at the end
of last year. With each passing day, there were growing concerns that inflation
might be headed higher. While rate fears were the main problem for preferred
stocks, they also faced another challenge. To lock in relatively low interest
rates and to sidestep potential market-related problems resulting from Y2K,
corporations issued near-record levels of debt and preferred stock during the
first nine months of 1999. The large increase in supply added more pressure to
the already strained preferred-stock market.
Utility common stocks, which made up 31% of the Fund's net assets, got
off to a reasonably good start but faltered in the final months of the Fund's
fiscal year in response to growing inflationary fears. They ended the year
without having made much progress.
- --------------------------------------------------------------------------------
[A 3 1/2" x 2" photo at bottom right side of page of John Hancock Patriot
Premium Dividend Fund I. Caption below reads "Fund mangement team members
(l-r): Sylvester Marquardt, Mark Maloney, Beverly Cleathero and Gregory
Phelps."]
- --------------------------------------------------------------------------------
"The poor performance of preferred stocks... resulted in disappointing returns."
3
<PAGE>
================================================================================
John Hancock Funds - Patriot Premium Dividend Fund I
"Common-stock electric utility companies involved in mergers and acquisitions
were among our best performers..."
- --------------------------------------------------------------------------------
[Pie chart at top left hand column with heading "Portfolio Diversification."
The chart is divided into five sections (from top to left): Short-Term
Investments & Other 4%, Industrials 7%, Financials 21%, Common Stock Utilities
31% and Preferred Stock Utilities 37%. A note below the chart reads "As a
percentage of net assets on September 30, 1999."]
- --------------------------------------------------------------------------------
Performance review
The poor performance of preferred stocks - which made up roughly two-thirds of
John Hancock Patriot Premium Dividend Fund I -resulted in disappointing returns.
For the 12 months ended September 30, 1999, the Fund posted a total return of
- -1.82% at net asset value. By comparison, the Dow Jones Utility Average returned
0.69% in the same period and the average preferred stock closed-end fund
returned -1.21%, according to Lipper, Inc.
Generally speaking, our preferred-stock holdings performed in line with
the overall preferred-stock segment of the market, which is to say most of them
lost ground. However, older securities - such as Merrill Lynch, AMERCO and Chase
Manhattan - held in best. Issued years ago when rates were higher, these
securities carry high coupons that helped cushion them against price declines.
- --------------------------------------------------------------------------------
[Table at bottom 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 Republic
New York followed by a down arrow with the phrase "Tainted by investigation of a
customer." The second listing is CMP Group followed by an up arrow with the
phrase "Taken over by Energy East". The third listing is KN Energy followed by
an up arrow with the phrase "Proposed acquisition by stronger competitor". A
note below the chart reads "See 'Schedule of Investments.' Investment holdings
are subject to change."]
- --------------------------------------------------------------------------------
Other disappointments included our holdings in Republic New York, which
crumpled over allegations about a customer's security fraud investigation.
Western Resources also stumbled when questions about its accounting procedures
surfaced.
Utility stocks involved with the build-out of fiber-optic operations
generally performed better than the group as a whole. Of all the unregulated
operations electric utilities are pursuing as a way to boost their earnings
growth, we think fiber optics offers the biggest potential. That explains a
large part of why we favor companies such as CMP Group, Montana Power, NSTAR,
new parent of Boston Edison, Potomac Electric Power and TDS.
M&A activity heats up
Common-stock electric utility companies involved in mergers and acquisitions
were among our best performers, although these bright spots were not enough to
overcome the Fund's other losses this year. CMP Group, for example, staged a
sizable rally on news that it was to be taken over by Energy East. Likewise, MCN
Energy Group performed well after announcing it would merge with DTE Energy. Our
holding in Florida Progress did well thanks to news that it would be acquired by
Carolina Power & Light. Merger activity had a curious effect on one of our
holdings. KN Energy was one of the biggest disappointments when it bungled a
merger with a stronger competitor in early 1999, but it came roaring back and
became one of our biggest winners this summer on news that it would be acquired
by Kinder Morgan. Eastern Enterprises also posted good gains after it announced
its intention to be sold. Finally, PennzEnergy performed reasonably
4
<PAGE>
================================================================================
John Hancock Funds - Patriot Premium Dividend Fund I
- --------------------------------------------------------------------------------
[Bar chart at top of left hand column with the heading "Fund Performance".
Under the heading is a note that reads "For the year ended September 30, 1999."
The chart is scaled in increments of .5% with -2.5% at the bottom and 1.0% at
the top. The first bar represents the -1.82% total return for John Hancock
Patriot Premium Dividend Fund I. The second bar represents the -1.21% total
return for Average preferred stock closed-end fund. The third bar represents
the 0.69% total return for Dow Jones Utility Average. A note below the chart
reads "The total return for John Hancock Patriot Premium Dividend Fund I is at
net asset value with all distributions reinvested. The average preferred stock
closed-end fund is tracked by Lipper, Inc. The Dow Jones Utility Average is an
unmanaged index that measures the performance of the utility industry in the
United States."]
- --------------------------------------------------------------------------------
well after it assumed the higher credit rating of its acquirer, Devon Energy
Corp.
Focus on call protection and DRD-eligibility
Throughout the period, we maintained our long-term focus on DRD-eligible
preferred stocks and on those that carry good call protection. DRD-eligible
preferred stocks offer distinct tax advantages to corporate investors, and as
such, remain in fairly constant demand. Call protection means issuers can't
redeem their preferred stocks before a specified date, as they often do when
interest rates fall. Even though rates appear to be on the rise now, we think
they will eventually resume their long-term downward trend. So we believe that
call protection will continue to be an important contributor to our performance.
Bulking up yield
Rising interest rates held a silver lining of sorts. As rates moved higher, so
did the yields on most preferred and utility common stocks. When we found
attractive opportunities to do so, we replaced lower-yielding utility common
stocks with higher-yielding common and preferred stocks.
Outlook
We believe that the attractively priced preferred-stock market is poised to come
into a reasonably good period ahead. Supply and demand conditions in the
preferred market should turn more favorable. Companies had already curtailed
their new issuance activity in September 1999, with no indications that issuance
will pick up anytime soon. From a demand standpoint, we expect that investors
will eventually look to preferred stocks as relatively cheap investments with
attractive yields.
We also remain optimistic about the prospects for utility stocks. 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.
Utility stocks look very attractive from a historical basis, selling at a
price-to-earnings ratio not seen in 20 years or so. Evidence of a slowing U.S.
economy - which could emerge later this year if interest rates keep rising -
would also likely stir demand for economically resistant utility stocks.
- --------------------------------------------------------------------------------
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.
"Supply and demand conditions in the preferred market should turn more
favorable."
5
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Premium Dividend Fund I
The Statement of Assets and Liabilities is the Fund's balance sheet on September
30, 1999. You'll also find the net asset value per share, for each Common Share,
as of that date.
Statement of Assets and Liabilities
September 30, 1999
- --------------------------------------------------------------------------------
Assets:
Investments at value - Note C:
Preferred stocks (cost - $148,417,873)....................... $147,933,922
Common stocks (cost - $59,245,176) .......................... 67,911,448
Short-term investments (cost - $2,015,684) .................. 2,015,684
--------------
217,861,054
Dividends receivable ......................................... 841,365
Other assets ................................................. 33,302
--------------
Total Assets ........................ 218,735,721
----------------------------------------------------
Liabilities:
Payable for investments purchased ............................ 517,563
DARTS dividend payable ....................................... 143,880
Common shares dividend payable ............................... 808,899
Federal income tax payable - Note A .......................... 63,731
Payable to John Hancock Advisers, Inc.
and affiliates - Note B ..................................... 255,878
Accounts payable and accrued expenses ........................ 68,491
--------------
Total Liabilities ................... 1,858,442
----------------------------------------------------
Net Assets:
Dutch Auction Rate Transferable Securities Preferred
Shares Stock Series A (DARTS) - Without par value,
unlimited number of shares of beneficial interest
authorized, 685 shares issued, liquidation preference
of $100,000 per share - Note A .............................. 68,500,000
--------------
Common Shares -
Without par value, unlimited number of shares of
beneficial interest authorized, 14,979,601 shares
issued and outstanding ...................................... 140,817,977
Accumulated net realized loss on investments ................. (239,953)
Net unrealized appreciation of investments ................... 8,184,513
Distributions in excess of net investment income ............. (385,258)
--------------
Net Assets Applicable to
Common Shares ($9.91 per
share based on 14,979,601
shares outstanding) ................. 148,377,279
--------------
Net Assets .......................... $216,877,279
====================================================
The Statement of Operations summarizes the Fund's investment income earned and
expenses incurred in operating the Fund. It also shows net gains and losses for
the period stated.
Statement of Operations
Year ended September 30, 1999
- --------------------------------------------------------------------------------
Investment Income:
Dividends .................................................... $14,974,965
Interest ..................................................... 102,495
-------------
15,077,460
-------------
Expenses:
Investment management fee - Note B .......................... 1,883,368
Administration fee - Note B ................................. 225,909
DARTS and auction fees ...................................... 171,203
Custodian fee ............................................... 62,228
Transfer agent fee .......................................... 52,875
Compliance systems fee ...................................... 52,000
Auditing fee ................................................ 50,798
Printing and postage ........................................ 48,329
Miscellaneous ............................................... 43,982
Trustees' fee ............................................... 14,699
Legal fees .................................................. 1,404
-------------
Total Expenses ...................... 2,606,795
----------------------------------------------------
Net Investment Income ............... 12,470,665
----------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments sold
(net of federal income taxes of $63,731) .................... 555,291
Change in net unrealized appreciation/depreciation
of investments .............................................. (14,208,639)
-------------
Net Realized and Unrealized
Loss on Investments ................. (13,653,348)
----------------------------------------------------
Net Decrease in Net Assets
Resulting from Operations ........... (1,182,683)
====================================================
Distribution to DARTS
Shareholders ........................ (2,679,551)
----------------------------------------------------
Net Decrease in Net Assets
Applicable to Common
Shareholders Resulting from
Operations Less DARTS
Distributions ....................... ($3,862,234)
====================================================
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Premium Dividend Fund I
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------
1998 1999
-------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From Operations:
Net investment income............................................................................. $12,965,130 $12,470,665
Net realized gain on investments sold ............................................................ 3,068,609 555,291
Change in net unrealized appreciation/depreciation of investments ................................ 11,790,768 (14,208,639)
------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations ................................. 27,824,507 (1,182,683)
------------- --------------
Distributions to Shareholders:
DARTS ($4,132 and $3,912 per share, respectively) - Note A ....................................... (2,830,425) (2,679,551)
Common Shares - Note A
Dividends from net investment income ($0.6988 and $0.6537 per share, respectively) .............. (10,465,226) (9,791,114)
Distributions in excess of net investment income ($0.0008 and $0.0330 per share, respectively) .. (11,930) (494,459)
------------- --------------
Total Distributions to Shareholders ............................................................ (13,307,581) (12,965,124)
------------- --------------
Net Assets:
Beginning of period .............................................................................. 216,508,160 231,025,086
------------- --------------
End of period (including distributions in excess of net investment income of
$46,501 and $385,258, respectively) ............................................................. $231,025,086 $216,877,279
============= ==============
Analysis of Common Shareholder Transactions:
YEAR ENDED SEPTEMBER 30,
1998 1999
--------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
Shares outstanding, beginning of period .............................. 14,979,601 $139,242,993 14,979,601 $140,700,663
Reclassification of net realized long-term gains retained on
investments sold
(net of federal income taxes of $767,306 and $63,731, respectively)
- Note A ........................................................... - 1,424,997 - 118,358
Reclassification of capital accounts - Note D ........................ - 32,673 - (1,044)
---------- ------------ ---------- ------------
Shares outstanding, end of period .................................... 14,979,601 $140,700,663 14,979,601 $140,817,977
========== ============ ========== ============
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, distributions paid to
shareholders and any increase due to reinvestment of distributions. The footnote
illustrates any reclassifications of capital share amounts, the number of Common
Shares outstanding at the beginning and at the 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 Premium Dividend Fund I
Financial Highlights
Selected data for a Common Share outstanding throughout the periods indicated,
investment returns, key ratios and supplemental data are listed as follows:
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------------------------------------
1995 1996 1997 1998 1999
----------- ----------- ----------- ---------- ------------
COMMON SHARES
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................ $7.93 $9.17 $9.02 $9.88 $10.85
--------- --------- --------- --------- ---------
Net Investment Income (6) ....................................... 0.95 0.94 0.98 0.87 0.83
Net Realized and Unrealized Gain (Loss) on Investments .......... 1.30 (0.10) 0.82 0.99 (0.90)
--------- --------- --------- --------- ---------
Total from Investment Operations ............................... 2.25 0.84 1.80 1.86 (0.07)
--------- --------- --------- --------- ---------
Less Distributions:
Dividends to DARTS Shareholders ................................. (0.21) (0.19) (0.19) (0.19) (0.18)
Dividends from Accumulated Net Investment Income to
Common Shareholders ............................................ (0.80) (0.74) (0.75) (0.70) (0.66)
Distributions in Excess of Accumulated Net Investment Income
to Common Shareholders ......................................... - (0.06) - (0.00)(5) (0.03)
--------- --------- --------- --------- ---------
Total Distributions ............................................ (1.01) (0.99) (0.94) (0.89) (0.87)
--------- --------- --------- --------- ---------
Net Asset Value, End of Period .................................. $9.17 $9.02 $9.88 $10.85 $9.91
========= ========= ========= ========= =========
Per Share Market Value, End of Period ........................... $9.000 $9.125 $9.375 $10.188 $8.813
Total Investment Return at Market Value ......................... 23.68% 10.58% 11.35% 16.57% (7.01%)
Ratios and Supplemental Data
Net Assets Applicable to Common Shares, End of
Period (000s omitted) .......................................... $135,939 $133,925 $148,008 $162,525 $148,377
Ratio of Expenses to Average Net Assets (1) ..................... 2.06% 1.87% 1.87% 1.65% 1.66%
Ratio of Net Investment Income to Average Net Assets (2) ........ 11.33% 10.12% 10.35% 8.26% 7.92%
Portfolio Turnover Rate ......................................... 74% 57% 56% 32% 18%
Senior Securities
Total DARTS Outstanding (000s omitted) .......................... $68,500 $68,500 $68,500 $68,500 $68,500
Asset Coverage per Unit (3) ..................................... $290,238 $294,044 $308,832 $330,525 $323,124
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
(1) Ratios calculated on the basis of expenses applicable to common shares
relative to the average net assets of common shares. Without the exclusion of
preferred shares, the ratio of expenses would have been 1.32%, 1.24%, 1.26%,
1.15% and 1.15%, 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 7.29%, 6.75%, 6.97%, 5.75% and 5.52%, respectively.
(3) Calculated by subtracting the Fund's total liabilities (not including the
DARTS) from the Fund's total assets, and dividing this amount by the number of
DARTS outstanding as of the applicable 1940 Act Evaluation Date.
(4) Plus accumulated and unpaid dividends.
(5) Less than $0.01 per share.
(6) Based on the average of the shares outstanding at the end of each month.
The Financial Highlights summarizes the impact of the following factors on a
single share for each period indicated: 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.
8
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Premium Dividend Fund I
Schedule of Investments
September 30, 1999
- --------------------------------------------------------------------------------
The Schedule of Investments is a complete list of all securities owned by the
Patriot Premium Dividend Fund I on September 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. Under each industry group is a
list of the stocks owned by the Fund. Short-term investments, which represent
the Fund's "cash" position, are listed last.
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
PREFERRED STOCKS
Agricultural Operations (1.53%)
Ocean Spray Cranberries, Inc.,
6.25% (R)............................ 35,000 $3,322,970
----------
Automobile/Trucks (1.95%)
General Motors Corp., 9.12%,
Depositary Shares, Ser G ............ 160,000 4,220,000
----------
Banks - Foreign (2.11%)
Australia and New Zealand Banking Group
Ltd., 9.125% (Australia) ............ 173,000 4,573,687
----------
Banks - United States (6.74%)
Chase Manhattan Corp., 10.84%, Ser C . 107,075 3,024,869
Fleet Financial Group, Inc., 6.75%,
Ser VI .............................. 59,000 2,950,000
Fleet Financial Group, Inc., 9.35%,
Depositary Shares ................... 140,000 3,543,750
J.P. Morgan & Company, Inc., 6.625%,
Depositary Shares, Ser H ............ 80,000 4,160,000
Republic New York Corp., $2.8575 ..... 20,000 932,969
----------
14,611,588
----------
Broker Services (6.62%)
Bear Stearns Companies, Inc., 5.49%,
Ser G ............................... 64,500 2,616,281
Lehman Brothers Holdings, Inc., 5.67%,
Depositary Shares, Ser D ............ 123,700 5,174,139
Lehman Brothers Holdings, Inc., 5.94%,
Ser C ............................... 68,000 3,026,000
Merrill Lynch & Co., Inc., 9.00%,
Depositary Shares, Ser A ............ 90,000 2,745,000
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
Broker Services (continued)
Morgan Stanley Group, Inc., 7.75%,
Depositary Shares ................... 15,000 $795,000
----------
14,356,420
----------
Diversified Operations (0.43%)
Grand Metropolitan Delaware, L.P.,
9.42%, Gtd Ser A .................... 35,420 943,057
----------
Finance (4.64%)
Citigroup, Inc., 8.40%, Depositary Shares,
Ser K ............................... 175,000 4,604,687
Coastal Finance I, 8.375% ............ 190,000 4,583,750
SI Financing Trust I, 9.50%, Gtd Pfd Sec &
Purchase Contract .................... 34,200 882,787
----------
10,071,224
----------
Leasing Companies (1.05%)
AMERCO, 8.50%, Ser A ................. 90,000 2,283,750
----------
Media (1.02%)
Shaw Communications, Inc., 8.45%,
Ser A (Canada) ...................... 89,453 2,202,780
----------
Oil & Gas (4.94%)
Anadarko Petroleum Corp., 5.46%,
Depositary Shares ................... 45,278 3,734,167
Devon Energy Corp., 6.49%, Ser A ..... 50,000 4,760,400
Lasmo America Ltd., 8.15% (R) ........ 20,000 2,215,760
----------
10,710,327
----------
Utilities (37.18%)
Alabama Power Co., 5.20% ............. 225,000 4,753,125
Avista Corp., $1.24, Ser L, Conv ..... 90,045 1,575,787
Baltimore Gas & Electric Co., 6.99%,
Ser 1995 ............................ 34,000 3,660,814
Boston Edison Co., 4.25% ............. 39,643 2,738,420
El Paso Tennessee Pipeline Co., 8.25%,
Ser A ............................... 182,000 9,646,000
Florida Power & Light Co., 6.75%,
Ser U ............................... 42,000 4,507,146
Hawaiian Electric Industries Capital
Trust I, 8.36% ...................... 100,000 2,537,500
Idaho Power Co., 7.07% ............... 13,000 1,414,556
MCN Michigan, L.P., 9.375%, Ser A .... 148,800 3,673,500
Massachusetts Electric Co., 6.99% .... 13,500 1,464,224
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
=============================FINANCIAL STATEMENTS===============================
John Hancock Funds - Patriot Premium Dividend Fund I
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
Utilities (continued)
Monongahela Power Co., 7.73%, Ser L..... 34,500 $3,793,240
Montana Power Capital I, 8.45%, Ser A .. 40,000 997,500
Montana Power Co., $6.875 .............. 22,500 2,436,570
PSI Energy, Inc., 6.875% ............... 37,000 3,983,235
Public Service Electric & Gas Co.,
6.92% ................................. 25,800 2,757,323
Puget Sound Energy, Inc., 7.45%, Ser II 124,000 3,301,500
Sierra Pacific Power Capital I, 8.60% .. 28,000 701,750
Sierra Pacific Power Co., 7.80%, Ser 1
(Class A) ............................. 50,000 1,349,350
South Carolina Electric & Gas Co.,
6.52% ................................. 50,000 5,250,000
Southern Union Financing I, 9.48% ...... 185,000 4,555,625
TDS Capital Trust I, 8.50% ............. 143,035 3,352,383
TDS Capital Trust II, 8.04% ............ 94,200 2,084,175
TXU Electric Co., $1.875, Depositary
Shares, Ser A ......................... 25,100 643,188
TXU Electric Co., $7.98 ................ 36,000 3,957,804
UtiliCorp Capital, L.P., 8.875%, Ser A . 184,256 4,422,144
Virginia Electric & Power Co., $7.05 ... 10,000 1,081,260
----------
80,638,119
----------
TOTAL PREFERRED STOCKS
(Cost $148,417,873) (68.21%) 147,933,922
--------- -----------
COMMON STOCKS
Utilities (31.31%)
Alliant Energy Corp. ................... 150,380 4,163,646
CMP Group, Inc. ........................ 30,000 791,250
Central Hudson Gas & Electric .......... 74,800 2,945,250
Consolidated Edison, Inc. .............. 55,000 2,282,500
DTE Energy Co. ......................... 90,000 3,251,250
Dominion Resources, Inc. ............... 64,300 2,901,537
Eastern Enterprises .................... 46,600 2,163,988
Edison International ................... 58,000 1,410,125
Florida Progress Corp. ................. 69,000 3,191,250
Hawaiian Electric Industries, Inc. ..... 27,000 950,062
KN Energy, Inc. ........................ 14,000 314,125
KeySpan Corp. .......................... 44,000 1,259,500
LG&E Energy Corp. ...................... 47,100 1,000,875
MCN Energy Group, Inc. ................. 35,000 601,563
Montana Power Co. ...................... 216,600 6,592,763
NSTAR .................................. 175,000 6,781,250
New England Electric System ............ 88,800 4,606,500
Northern States Power Co. .............. 20,000 431,250
PacifiCorp ............................. 54,000 1,086,750
Potomac Electric Power Co. ............. 114,000 2,899,875
MARKET
ISSUER, DESCRIPTION NUMBER OF SHARES VALUE
- ------------------- ---------------- -----
Utilities (continued)
Public Service Enterprise Group, Inc. .. 64,500 $2,491,313
Puget Sound Energy, Inc. ............... 216,900 4,866,694
Reliant Energy, Inc. ................... 93,500 2,530,344
Sempra Energy .......................... 10,000 208,125
Sierra Pacific Resources ............... 56,600 1,259,350
Southern Co. ........................... 57,000 1,467,750
TECO Energy, Inc. ...................... 122,000 2,577,250
WPS Resources Corp. .................... 28,400 796,975
Western Resources, Inc. ................ 97,700 2,088,338
----------
TOTAL COMMON STOCKS
(Cost $59,245,176) (31.31%) 67,911,448
------- ----------
INTEREST PAR VALUE
RATE (000s OMITTED)
-------- --------------
SHORT-TERM INVESTMENTS
Oil & Gas (0.93%)
Chevron USA, Inc.,
10-01-99..................... 5.30% $2,016 2,015,684
-----------
TOTAL SHORT-TERM INVESTMENTS (0.93%) 2,015,684
-------- -----------
TOTAL INVESTMENTS (100.45%) 217,861,054
-------- -----------
OTHER ASSETS AND LIABILITIES, NET (0.45%) (983,775)
-------- -----------
TOTAL NET ASSETS (100.00%) $216,877,279
======== ============
Parenthetical disclosure of a foreign country in the security description
represents country of foreign issuer; however, security is U.S. dollar
denominated.
(R) These securities are exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold, normally to qualified
institutional buyers, in transactions exempt from registration. Rule 144A
securities amounted to $5,538,730 or 2.55% of net assets as of September 30, 1999.
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Fund.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
========================NOTES TO FINANCIAL STATEMENTS===========================
John Hancock Funds - Patriot Premium Dividend Fund I
NOTE A -
ACCOUNTING POLICIES
John Hancock Patriot Premium Dividend Fund I (the "Fund") is a diversified
closed-end management investment company registered under the Investment Company
Act of 1940, as amended. 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. Additionally, net capital losses of $69,634 attributable to
security transactions incurred after October 31, 1998 are treated as arising on
the first day of the Fund's next taxable year (October 1, 1999).
DIVIDENDS, INTEREST AND DISTRIBUTIONS 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 September 30, 1999, which have no effect on the Fund's net
assets, net investment income or net realized gains.
The Fund has the option and has chosen to retain and pay the applicable
federal income tax on $182,089 of its net long-term capital gain for the fiscal
period ended September 30, 1999.
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.
DUTCH AUCTION RATE TRANSFERABLE SECURITIES PREFERRED STOCK SERIES A (DARTS) The
Fund issued 685 shares of Dutch Auction Rate Transferable Securities Preferred
Stock Series A (DARTS) concurrently with the issuance of its Common Shares in
the public offering. The underwriting discount was recorded as a reduction of
the capital of the Common Shares. Dividends on the DARTS, which accrue daily,
are cumulative at a rate which was established at the offering of the DARTS and
has been reset every 49 days thereafter by auction. Dividend rates ranged from
3.60% to 4.37% during the year ended September 30, 1999.
The DARTS 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 DARTS 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 DARTS. If the dividend on the DARTS shall remain unpaid in an
amount equal to two full years' dividends, the holders of the DARTS, as a class,
have the right to elect a majority of the Board of Trustees. In general, the
holders of the DARTS and the Common Shares have equal voting rights of one vote
per share, except that the holders of the DARTS, 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 DARTS and Common
Shares. The DARTS 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 DARTS, as defined in the Fund's By-Laws.
11
<PAGE>
========================NOTES TO FINANCIAL STATEMENTS===========================
John Hancock Funds - Patriot Premium Dividend Fund I
NOTE B -
MANAGEMENT FEE AND TRANSACTIONS
WITH AFFILIATES AND OTHERS
Under the 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 0.50% of the Fund's average weekly net assets,
plus 5.00% of the Fund's weekly gross income. The Adviser's total fee is limited
to a maximum amount equal to 1.00% annually of the Fund's average weekly net
assets. For the year ended September 30, 1999, the advisory fee incurred did not
exceed the maximum advisory fee allowed.
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 0.10% 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. The investment had no
impact on the operations of the Fund.
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 September 30, 1999, aggregated $41,314,009 and $41,178,992, respectively.
There were no purchases or sales of obligations of the U.S. government and its
agencies during the year ended September 30, 1999.
The cost of long-term investments owned at September 30, 1999
(including short-term investments) for federal income tax purposes was
$210,123,557. Gross unrealized appreciation and depreciation of investments
aggregated $16,923,791 and $9,186,294, respectively, resulting in net unrealized
appreciation of $7,737,497 for federal income tax purposes.
NOTE D -
RECLASSIFICATION OF CAPITAL
ACCOUNTS During the year ended September 30, 1999, the Fund has reclassified
amounts to reflect an increase in accumulated net realized loss on investments
of $154,658, a decrease in distributions in excess of net investment income of
$155,702 and a decrease in capital paid-in of $1,044. This represents the amount
necessary to report these balances on a tax basis, excluding certain temporary
differences, as of September 30, 1999. In addition, pursuant to Internal Revenue
Code Section 852(b)(3)(D), the Fund has reclassified $118,358 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. The calculation of net investment income per share in the
financial highlights excludes these adjustments.
12
<PAGE>
================================================================================
John Hancock Funds - Patriot Premium Dividend Fund I
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees of
John Hancock Patriot Premium Dividend Fund I:
We have audited the accompanying statement of assets and liabilities of John
Hancock Patriot Premium Dividend Fund I (the "Fund"), including the schedule of
investments, as of September 30, 1999, the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
years in the two-year period ended September 30, 1999, and the financial
highlights for each of the years in the three-year period ended September 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. The financial
highlights for each of the years in the two-year period ended September 30, 1996
were audited by other auditors whose report, dated November 1, 1996, expressed
an unqualified opinion on those financial highlights.
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
September 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
September 30, 1999, the results of its operations, the changes in its net
assets, and its financial highlights for the respectively stated periods in
conformity with generally accepted accounting principles.
/s/DELOITTE & TOUCHE LLP
- ------------------------
Boston, Massachusetts
November 5, 1999
13
<PAGE>
================================================================================
John Hancock Funds - Patriot Premium Dividend Fund I
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 September 30,
1999.
All of the dividends paid for the fiscal year end are taxable as
ordinary income. Distributions to preferred and common shareholders were 92.5%
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 September
30, 1999.
Within 60 days of the Fund's fiscal year end, the Fund will mail to its
shareholders of record on September 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 end (on or before December 30, 1999) and the IRS
in 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 advisers.
14
<PAGE>
================================================================================
John Hancock Funds - Patriot Premium Dividend Fund I
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 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 participant's 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, after such 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 Premium Dividend Fund I
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 participants 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 after at least 90 days 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 issuers in which the Fund invests, the Fund's
operations or financial markets generally. SHAREHOLDER COMMUNICATION AND
ASSISTANCE If you have any questions concerning the John Hancock Patriot Premium
Dividend Fund I, 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.
16
<PAGE>
=====================================NOTES======================================
John Hancock Funds - Patriot Premium Dividend Fund I
17
<PAGE>
=====================================NOTES======================================
John Hancock Funds - Patriot Premium Dividend Fund I
18
<PAGE>
=====================================NOTES======================================
John Hancock Funds - Patriot Premium Dividend Fund I
19
<PAGE>
================================================================================
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