Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other
disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the Advisor’s Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal
market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end
mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day.
In certain instances, the Pricing
Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for
trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the
Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready
market for such securities existed.
The fund uses a three tier hierarchy
to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities,
including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment
speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities
valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in
determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the
risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the
values by input classification of the fund’s investments as of June 30, 2023, by major security category or type:
|
| Total
value at
6-30-23
| Level 1
quoted
price
| Level 2
significant
observable
inputs
| Level 3
significant
unobservable
inputs
|
|
|
|
|
|
|
| Investments in securities:
|
|
|
|
|
| Assets
|
|
|
|
|
| Common stocks
| $1,384,444,127
| $1,384,444,127
| —
| —
|
| Preferred securities
| 6,580,550
| —
| —
| $6,580,550
|
| Exchange-traded funds
| 10,183,739
| 10,183,739
| —
| —
|
| Short-term investments
| 28,250,860
| 28,250,860
| —
| —
|
| Total investments in securities
| $1,429,459,276
| $1,422,878,726
| —
| $6,580,550
|
Investment in affiliated underlying
funds. The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the
affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
|
|
|
|
|
|
|
| Dividends and distributions
|
| Affiliate
| Ending
share
amount
| Beginning
value
| Cost of
purchases
| Proceeds
from shares
sold
| Realized
gain
(loss)
| Change in
unrealized
appreciation
(depreciation)
| Income
distributions
received
| Capital gain
distributions
received
| Ending
value
|
| John Hancock Collateral Trust
| 2,003,469
| $44,683,221
| $170,902,957
| $(195,549,350)
| $(13,630)
| $1,076
| $169,984
| —
| $20,024,274
|
Restricted securities. The fund may hold restricted securities which are restricted as to resale and the fund has limited rights to registration under the Securities Act of 1933. Disposal may involve
time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. The following table summarizes the restricted securities held at June 30, 2023:
Issuer,
Description
| Original
acquisition date
| Acquisition
cost
| Beginning
share
amount
| Shares
purchased
| Shares
sold
| Ending
share
amount
| Value as a
percentage of
net assets
| Ending
value
|
| Essence Group Holdings Corp.
| 5-1-141
| $5,083,384
| 2,958,957
| —
| —
| 2,958,957
| 0.2%
| $3,461,980
|
| Lookout, Inc., Series F
| 7-31-141
| 4,276,874
| 392,767
| —
| —
| 392,767
| 0.2%
| 3,118,570
|