JOHN HANCOCK INSTITUTIONAL SERIES TRUST
Supplements to Prospectus dated July 1, 1997
John Hancock Active Bond Fund
Currently, the Fund has a policy allowing 25% of total assets to be invested in
junk bonds but also has a policy requiring 75% of the fund's debt securities
(other than commercial paper) to consist of investment grade debt securities and
their unrated equivalent. These two policies imperfectly overlap therefore
creating a conflicting measure of debt ratings. The change set forth below will
eliminate this conflict.
Replace the second sentence of the second paragraph on page 8 of the Prospectus
with the following:
At least 75% of the Fund's total assets will consist of investment grade debt
securities (i.e. within the four highest grades as determined by Standard &
Poor's Ratings Group ("S&P"), AAA, AA, A or BBB, or by Moody's Investors
Service, Inc. ("Moody's"), Aaa, Aa, A or Baa); or debt securities of banks, the
U.S. Government, its agencies or instrumentalities and other issuers not rated
as a matter of policy by S&P or Moody's that are the unrated equivalent of
investment grade; or cash and cash-equivalents.
John Hancock Fundamental Value Fund
On December 3, 1997, the Trustees of John Hancock Fundamental Value Fund (the
"Fund") voted to change the Fund's name to John Hancock Small Capitalization
Value Fund effective January 1, 1998. This change more accurately reflects the
Fund's investment strategy. To add further clarity, the investment policy is
amended to reflect a high level of investment in securities of small
capitalization issuers.
Replace the first three paragraphs on page 11 of the Prospectus with the
following:
Under normal circumstances, the Fund will invest at least 80% of its total
assets in common stocks and other equity securities, including convertible
securities, preferred stocks and warrants, of domestic and foreign issuers of
small-sized companies with a total market capitalization of $1 billion or less
("small capitalization companies"). Higher risks are often associated with
investments in companies with small market capitalizations. See "Smaller
Capitalization Companies."
The Fund's investment policy reflects the Adviser's belief that while the
securities markets tend to be efficient, sufficiently persistent price anomalies
exist which the disciplined active equity manager seeks to exploit to achieve an
above-average rate of return.
John Hancock Small Capitalization Equity Fund
On December 3, 1997, the Trustees of John Hancock Small Capitalization Equity
Fund (the "Fund") voted to change the Fund's name to John Hancock Small
Capitalization Growth Fund effective January 1, 1998. The change more accurately
reflects the Fund's strategy to invest in common stocks of rapidly growing
smaller capitalization companies offering above average growth potential. This
strategy has been in place since inception.
John Hancock Multi-Sector Growth Fund
The discussion of who is responsible for the day-to-day management of the Fund
contained in the "Organization and Management of the Fund" section is replaced
with the following:
Barbara C. Friedman, CFA, is leader of the fund's portfolio management team. A
senior vice president of the Adviser, Ms. Friedman has been a member of the
management team since joining John Hancock Funds in January 1998. Ms. Friedman
has been in the investment business since 1973.
January 26, 1998
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JOHN HANCOCK INSTITUTIONAL SERIES TRUST
Supplements to Prospectus dated July 1, 1997
John Hancock Dividend Performers Fund
The Dividend Performers Fund's (the "Fund") strategy seeks to invest in common
stocks with a record of having increased their dividends in each of the
preceding ten or more years. Therefore, The Fund's investment policy regarding
fixed income and below investment grade securities is being eliminated. The
Fund's strategy as well as its team leader, John F. Snyder, III, have been in
place since the Fund's inception.
In order to accomplish this change the Prospectus should be modified as follows:
Delete the second paragraph on page 12 and replace with the following:
Under normal circumstances, the Fund invests at least 65% of its total assets in
dividend paying securities. The Adviser expects that common stocks will
ordinarily offer the greatest dividend paying potential and will constitute a
majority of the Fund's assets. For defensive purposes, however, the Fund may
temporarily hold high grade short-term debt securities. The Adviser and the
Fund's subadviser, Sovereign Asset Management Corp. ("SAMCorp"), will select
securities for the Fund's portfolio mainly for their investment character based
upon generally accepted elements of intrinsic value, including industry
position, management, financial strength, earnings power, marketability and
prospects for future growth.
Delete the fourth paragraph on page 12 of the Prospectus.
The paragraph under the following heading in the "Organization and Management of
the Funds" section on page 23 of the prospectus is replaced as follows:
Dividend Performers Fund
John F. Snyder, III, assisted by a group of portfolio managers and analysts, has
been primarily responsible for management of the Fund since its inception. Mr.
Snyder is an executive vice president of the Adviser, has been in the investment
business since 1972 and has been associated with the Adviser since 1991.
Delete all references to Dividend Performers Fund under the heading "Lower Rated
Securities" on page 30 of the Prospectus.
November 17, 1997
John Hancock Global Bond Fund
Replace the second sentence of the fourth paragraph on page 9 of the Prospectus
with the following:
The Fund may, however, invest less than 35% of its total assets in fixed-income
debt securities rated, at the time of investment, as low as CCC by S&P or Caa by
Moody's or their respective equivalent ratings and unrated securities of
comparable credit quality.
September 10, 1997
KBOPS2 1/98
