John
Hancock
Core High Yield Fund
SUMMARY
PROSPECTUS 7–1–13
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Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund, including the statement of additional information and most recent reports, online at www.jhfunds.com/Forms/Prospectuses.aspx. You can also get this information at no cost by calling 1-800-225-5291 or by sending an e-mail request to info@jhfunds.com. The fund’s prospectus and statement of additional information, both dated 7-1-13, and most recent financial highlights information included in the shareholder report, dated 3-31-13, are incorporated by reference into this Summary Prospectus.
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Class A:
JYIAX
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Class C:
JYICX
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Investment objective
The fund seeks total return, consisting of a high level of current
income and capital appreciation.
Fees and expenses
This table describes the fees and expenses you may pay if you
buy and hold shares of the fund. You may qualify for sales charge discounts on Class A shares if you and your family invest, or
agree to invest in the future, at least $100,000 in the John Hancock family of funds. More information about these and other discounts
is available on pages 14 to 16 of the prospectus under “Sales charge reductions and waivers” or pages 95 to 98 of the
fund’s statement of additional information under “Initial Sales Charge on Class A and Class T Shares.”
Shareholder fees
(%) (fees
paid directly from your investment)
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Class
A
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Class
C
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Maximum front-end sales charge (load) on purchases as a % of purchase price
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4.50
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None
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Maximum deferred sales charge (load) as a % of purchase or sale price, whichever is less
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1.00
(on certain purchases,
i
ncluding those of
$1 million or more)
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1.00
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Small account fee (for fund account balances under $1,000)
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$20
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$20
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Annual fund operating expenses
(%)
(expenses that you pay each
year as a percentage of the value of your investment)
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Class
A
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Class
C
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Management fee
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0.65
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0.65
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Distribution and service (12b-1) fees
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0.25
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1.00
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Other expenses
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0.40
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0.47
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1
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Total annual fund operating expenses
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1.30
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2.12
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Contractual expense reimbursement
2
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–0.12
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–0.19
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Total annual fund operating expenses after expense reimbursements
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1.18
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1.93
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1
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“Other expenses”
have been estimated for the first year of operations of the fund's Class C shares.
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2
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The advisor has contractually
agreed to reduce its management fee or, if necessary, make payment to the fund to the extent necessary to maintain the fund's
total operating expenses at 1.18% and 1.93% for Class A and Class C shares, respectively, excluding certain expenses such as taxes,
brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred
in the ordinary course of the fund's business, acquired fund fees and expenses paid indirectly and short dividend expense. The
current expense limitation agreement expires on June 30, 2014, unless renewed by mutual agreement of the fund and the advisor
based upon a determination that this is appropriate under the circumstances at that time.
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John Hancock
Core High Yield Fund
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Expense example
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. Please see below a hypothetical example showing the expenses of a
$10,000 investment in the fund for the time periods indicated (Kept column) and then assuming a redemption of all of your shares
at the end of those periods (Sold column). The example assumes a 5% average annual return. The example assumes fund expenses will
not change over the periods. Although your actual costs may be higher or lower, based on these assumptions, your costs
would be:
Expenses
($)
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Class A
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Class C
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Shares
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Sold
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Kept
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Sold
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Kept
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1
Year
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565
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565
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296
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196
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3
Years
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832
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832
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646
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646
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5
Years
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1,120
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1,120
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1,122
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1,122
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10 Years
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1,937
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1,937
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2,437
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2,437
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Portfolio turnover
The fund pays transaction costs, such as commissions, when it
buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the fund’s performance. During its most recent fiscal year, the fund’s
portfolio turnover rate was 15% of the average value of its portfolio.
Principal investment
strategies
Under normal market conditions, the fund invests at least 80%
of its net assets (plus any borrowings for investment purposes) in corporate debt securities that are rated, at the time of purchase,
below investment-grade (debt securities rated Ba and below by Moody’s Investors Service, Inc. (Moody’s) and BB and
below by Standard & Poor’s Ratings Services (S&P), and their unrated equivalents, are considered high-yield and junk
bonds). Up to 30% of the total assets of the fund may be invested in debt securities of foreign issuers, including those in emerging
markets. The fund may also invest up to 10% of its total assets in domestic and foreign equities of any market capitalization range.
The fund will invest in below-investment-grade (high-yield) securities
that, at the time of purchase, offer the potential for higher returns, as they carry a higher yield to compensate for the higher
risk. In deciding among securities to purchase, the subadvisor may take into account the credit quality, country of issue, interest
rate, liquidity, maturity and yield of a security as well as other factors, including the fund’s duration and prevailing
and anticipated market conditions. The corporate debt that the fund invests in includes traditional corporate bonds as well as
bank loans. At the time of purchase, no more than 10% of the fund’s total assets may be invested in securities that are rated
in default by Moody’s and S&P, and its unrated equivalents. There is no limit on the fund’s average maturity. The
fund may engage in derivatives transactions that include bond futures, interest-rate futures and swaps, and credit default swaps,
in each case for the purpose of reducing risk and/or enhancing investment returns.
The subadvisor uses a fundamentally driven research process that
focuses on current income and capital appreciation, with the aim of managing for the potential loss of capital. The fund is constructed
on a two-tier basis. The core, or first-tier, generally holds debt rated BB and B (and unrated equivalents). The second-tier holds
more volatile debt, typically rated CCC and below, and, compared to the first tier, may be managed with a higher portfolio turnover
or with shorter investment horizons.
Principal risks
An investment in the fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s shares will go up and
down in price, meaning that you could lose money by investing in the fund. Many factors influence a mutual fund’s performance.
Instability in the financial markets has led many governments,
including the United States government, to take a number of unprecedented actions designed to support certain financial institutions
and segments of the financial markets that have experienced extreme volatility and, in some cases, a lack of liquidity. Federal,
state and other governments, and their regulatory agencies or self-regulatory organizations, may take actions that affect the regulation
of the instruments in which the fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or
regulation may also change the way in which the fund itself is regulated. Such legislation or regulation could limit or preclude
the fund’s ability to achieve its investment objective.
Governments or their agencies may also acquire distressed assets
from financial institutions and acquire ownership interests in those institutions. The implications of government ownership and
disposition of these assets are unclear, and such a program may have positive or negative effects on the liquidity, valuation and
performance of the fund’s portfolio holdings. Furthermore, volatile financial markets can expose the fund to greater market
and liquidity risk and potential difficulty in valuing portfolio instruments held by the fund.
The fund’s
main risk factors are listed below in alphabetical order.
Before investing, be sure to read the additional descriptions
of these risks
beginning on page 6 of the prospectus.
Active management risk
The
subadvisor’s investment strategy may fail to produce the intended result.
Changing distribution levels risk
The
distribution amounts paid by the fund generally depend on the amount of income and/or dividends paid by
the
fund’s investments.
Credit and counterparty risk
The
issuer or guarantor of a fixed-income security, the counterparty to an over-the-counter derivatives contract or a
borrower
of a fund’s securities may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise
honor its obligations. Funds that invest in fixed-income securities are subject to varying degrees of risk that the issuers of
the securities will have their credit rating downgraded or will default, potentially reducing a fund’s share price and income
level.
Currency risk
Fluctuations
in exchange rates may adversely affect the U.S. dollar value of a fund’s investments. Currency risk includes the risk that
currencies in which a fund’s investments are traded, or currencies
in which a fund has taken an active position, will decline in value relative to the U.S. dollar.
Emerging market risk
The
risks of investing in foreign securities are greater for investments in emerging markets. Emerging market countries may
experience higher inflation, interest rates and unemployment as well
as greater social, economic, regulatory and political uncertainties than more developed countries.
Equity securities risk
The
value of a company’s equity securities is subject to changes in the company’s financial condition, and overall market
and
economic conditions.
Fixed-income securities risk
Fixed-income
securities are affected by changes in interest rates and credit quality. A rise in interest rates typically
causes
bond prices to fall. The longer the average maturity of the bonds held by the fund, the more sensitive the fund is likely to be
to interest-rate changes. There is the possibility that the issuer of the security will not repay all or a portion of the principal
borrowed and will not make all interest payments.
Foreign securities risk
As
compared to U.S. companies, there may be less publicly available information relating to foreign companies. Foreign
securities
may be subject to foreign taxes. The value of foreign securities is subject to currency fluctuations and adverse political and
economic developments. Investments in emerging-market countries are subject to greater levels of foreign investment risk.
Hedging, derivatives and other strategic transactions risk
Hedging and other strategic transactions may increase the volatility
of a fund and, if
the transaction is not successful, could
result in a significant loss to a fund. The use of derivative instruments could produce disproportionate gains or losses, more
than the principal amount invested. Investing in derivative instruments involves risks different from, or possibly greater than,
the risks associated with investing directly in securities and other traditional investments and, in a down market, could become
harder to value or sell at a fair price. The following is a list of certain derivatives and other strategic transactions in which
the fund may invest and the main risks associated with each of them:
Credit default swaps
Counterparty
risk, liquidity risk (i.e., the inability to enter into closing transactions), interest-rate risk, risk of default of the
underlying reference obligation and risk of disproportionate loss are
the principal risks of engaging in transactions involving credit default swaps.
Futures contracts
Counterparty
risk, liquidity risk (i.e., the inability to enter into closing transactions) and risk of disproportionate loss are the
principal risks of engaging in transactions involving futures contracts.
Interest-rate swaps
Counterparty
risk, liquidity risk (i.e., the inability to enter into closing transactions), interest-rate risk and risk of
disproportionate
loss are the principal risks of engaging in transactions involving interest-rate swaps.
High portfolio turnover risk
Actively
trading securities can increase transaction costs (thus lowering performance) and taxable distributions.
Liquidity risk
Exposure
exists when trading volume, lack of a market maker or legal restrictions impair the ability to sell particular securities or close
derivative positions at an advantageous price.
Lower-rated fixed-income securities risk and high-yield securities
risk
Lower-rated fixed-income securities and high-yield fixed-income
securities (commonly known as “junk bonds”) are subject
to greater credit quality risk and risk of default than higher-rated fixed-income securities. These securities may be considered
speculative and the value of these securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory,
market or economic developments and can be difficult to resell.
Medium and smaller company risk
The
prices of medium and smaller company stocks can change more frequently and dramatically than those of
large
company stocks. For purposes of the fund’s investment policies, the market capitalization of a company is based on its market
capitalization at the time the fund purchases the company’s securities. Market capitalizations of companies change over time.
Past
performance
The following performance information in the bar chart and table
below illustrates the variability of the fund’s returns and provides some indication of the risks of investing in the fund
by showing changes in the fund’s performance from year to year. However, past performance (before and after taxes) does not
indicate future results. All figures assume dividend reinvestment. Performance for the fund is updated daily, monthly and quarterly
and may be obtained at our Web site: www.jhfunds.com/FundPerformance, or by calling 1-800-225-5291, Monday–Thursday between
8:00 A.M. and 7:00 P.M. and on Fridays between 8:00 A.M. and 6:00 P.M., Eastern Time.
Calendar year total returns
These
do not include sales charges and would have been lower if they did. Calendar year total returns are shown only
for
Class A shares and would be different for Class C shares.
Average annual total returns
Performance
of a broad-based market index is included for comparison.
John Hancock
Core High Yield Fund
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After-tax returns
These
are shown only for Class A shares and would be different for Class C shares. They reflect the highest individual federal
marginal income tax rates in effect as of the date provided and do
not reflect any state or local taxes. Your actual after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA, 401(k) or other tax-advantaged investment plan.
Prior to March 12, 2012, the fund was not open to investment
by the general public. Performance prior to this date does not reflect additional expenses associated with publicly offering the
fund’s shares. Class C shares were first offered on March 27, 2013. Class C share returns prior to this date are those of
Class A shares that have been recalculated to reflect the estimated gross fees and expenses of Class C shares. Returns for Class
C shares would have been substantially similar to returns of Class A shares because both share classes are invested in the same
portfolio of securities and returns would differ only to the extent that expenses of the classes are different.
Calendar
year total returns — Class A
(%)
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Year-to-date total return
The
fund’s total return for the three months ended March 31, 2013 was 3.77%.
Best quarter:
Q3
‘10, 7.86%
Worst quarter:
Q3
'11, –5.12%
Average annual
total returns
(%)
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1 Year
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Inception
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as of 12-31-12
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4-30-09
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Class A
before tax
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10.26
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17.15
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After tax on distributions
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7.27
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11.53
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After tax on distributions, with sale
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6.57
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11.44
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Class C
before tax
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13.01
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17.09
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Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index
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15.55
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19.06
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Investment
management
Investment advisor
John
Hancock Investment Management Services, LLC
Subadvisor
John
Hancock Asset Management a division of Manulife Asset Management (North America) Limited
Portfolio
management
Terry Carr, CFA
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Konstantin Kizunov, CFA
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Richard Kos, CFA
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Portfolio manager
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Portfolio manager
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Portfolio manager
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Managed the fund since inception
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Managed the fund since inception
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Managed the fund since inception
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Purchase
and sale of fund shares
The minimum initial investment requirement for Class A and Class
C shares of the fund is $1,000, except for group investments, which is $250. There are no subsequent investment requirements. You
may redeem shares of the fund on any business day through our Web site: www.jhfunds.com; by mail: Mutual Fund Operations, John
Hancock Signature Services, Inc., P.O. Box 55913, Boston, Massachusetts 02205-5913; or by telephone: 1-800-225-5291.
Taxes
The fund’s distributions are taxable, and will be taxed
as ordinary income and/or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or
individual retirement account. Withdrawals from such tax-deferred arrangements may be subject to tax at a later date.
Payments
to broker-dealers and other financial intermediaries
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank, registered investment advisor, financial planner or retirement plan administrator), the fund and
its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment.
Ask your salesperson or visit your financial intermediary’s Web site for more information.
© 2013 John Hancock Funds, LLC
3460SP 7-1-13 SEC file number: 811-21777
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