UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 4186
John Hancock Income Securities Trust
(Exact name of registrant as specified in charter)
601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Alfred P. Ouellette, Senior Counsel and Assistant Secretary
601 Congress Street
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4324
| Date of fiscal year end: | December 31 |
| Date of reporting period: | September 30, 2007 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Interest | Maturity | Credit | Par value | ||||
| Issuer, description | rate | date | rating (A) | (000) | Value | ||
| Bonds 83.40% | $140,300,001 | ||||||
|
| |||||||
| (Cost $142,659,115) | |||||||
| Advertising 0.45% | 756,700 | ||||||
|
| |||||||
| R.H. Donnelley Corp., | |||||||
| Sr Disc Note Ser A-1 | 6.875% | 01-15-13 | B | $200 | 189,000 | ||
| Sr Disc Note Ser A-2 | 6.875 | 01-15-13 | B | 300 | 283,500 | ||
| Sr Note (M)(S) | 8.875 | 10-15-17 | B | 280 | 284,200 | ||
| Aerospace & Defense 0.14% | 242,400 | ||||||
|
| |||||||
| TransDigm, Inc., | |||||||
| Gtd Sr Sub Note (S) | 7.750 | 07-15-14 | B- | 240 | 242,400 | ||
| Agricultural Products 0.31% | 530,013 | ||||||
|
| |||||||
| Chaoda Modern Agriculture (Holdings) | |||||||
| Ltd., | |||||||
| Gtd Sr Note (Cayman Islands) | |||||||
| (F)(L)(S) | 7.750 | 02-08-10 | BB | 545 | 530,013 | ||
| Airlines 1.03% | 1,727,283 | ||||||
|
| |||||||
| Continental Airlines, Inc., | |||||||
| Pass Thru Ctf Ser 1999-1A | 6.545 | 02-02-19 | A- | 359 | 361,178 | ||
| Pass Thru Ctf Ser 2000-2 | |||||||
| Class B | 8.307 | 10-02-19 | BB- | 398 | 397,027 | ||
| Pass Thru Ctf Ser 2001-1 | |||||||
| Class C | 7.033 | 06-15-11 | B+ | 130 | 126,547 | ||
| Delta Airlines, Inc., | |||||||
| Sr Pass Thru Ctf Ser 02-1 | 6.417 | 07-02-12 | AAA | 825 | 842,531 | ||
| Apparel Retail 0.13% | 218,900 | ||||||
|
| |||||||
| Hanesbrands, Inc., | |||||||
| Gtd Sr Floating Rate Note | |||||||
| Ser B (P) | 8.784 | 12-15-14 | B- | 220 | 218,900 | ||
| Automotive Retail 0.12% | 196,500 | ||||||
|
| |||||||
| Avis Budget Car Rental LLC, | |||||||
| Gtd Sr Note | 7.625 | 05-15-14 | BB- | 200 | 196,500 | ||
| Broadcasting & Cable TV 0.73% | 1,236,707 | ||||||
|
| |||||||
| Comcast Cable Communications Holdings, | |||||||
| Inc., | |||||||
Page 1
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Gtd Note | 8.375 | 03-15-13 | BBB+ | 395 | 442,731 | |
| Nexstar Finance, Inc., | ||||||
| Sr Sub Note | 7.000 | 01-15-14 | CCC+ | 340 | 326,400 | |
| Rogers Cable, Inc., | ||||||
| Sr Sec Note (Canada) (F) | 6.750 | 03-15-15 | BB+ | 455 | 467,576 | |
| Casinos & Gaming 5.49% | 9,239,144 | |||||
|
| ||||||
| Chukchansi Economic Development | ||||||
| Authority, | ||||||
| Sr Note (S) | 8.000 | 11-15-13 | BB- | 460 | 464,600 | |
| Downstream Development Authority | ||||||
| of the Quapaw Tribe of Oklahoma, | ||||||
| Sr Note (M)(S) | 12.000 | 10-15-15 | B- | 500 | 487,500 | |
| Fontainbleau Las Vegas Holdings Ltd., | ||||||
| Note (S) | 10.250 | 06-15-15 | CCC+ | 395 | 370,313 | |
| Greektown Holdings LLC, | ||||||
| Sr Note (S) | 10.750 | 12-01-13 | CCC+ | 315 | 311,850 | |
| Harrah's Operating Co., Inc., | ||||||
| Gtd Sr Bond | 5.625 | 06-01-15 | BB | 425 | 337,875 | |
| Jacobs Entertainment, Inc., | ||||||
| Gtd Sr Note | 9.750 | 06-15-14 | B- | 500 | 497,500 | |
| Little Traverse Bay Bands of Odawa | ||||||
| Indians, | ||||||
| Sr Note (S) | 10.250 | 02-15-14 | B | 500 | 510,000 | |
| Majestic Star Casino LLC, | ||||||
| Gtd Sr Sec Note | 9.500 | 10-15-10 | B+ | 65 | 62,400 | |
| Mashantucket West Pequot, | ||||||
| Bond (S) | 5.912 | 09-01-21 | BBB- | 285 | 269,202 | |
| MTR Gaming Group, Inc., | ||||||
| Gtd Sr Sub Note Ser B | 9.000 | 06-01-12 | B- | 290 | 287,100 | |
| Pinnacle Entertainment, Inc., | ||||||
| Sr Sub Note (L)(S) | 7.500 | 06-15-15 | B- | 1,000 | 946,250 | |
| Pokagon Gaming Authority, | ||||||
| Sr Note (S) | 10.375 | 06-15-14 | B | 215 | 235,963 | |
| Seminole Hard Rock Entertainment, | ||||||
| Sr Sec Note (P)(S) | 8.194 | 03-15-14 | BB | 500 | 488,125 | |
| Seminole Tribe of Florida, | ||||||
| Bond (S) | 6.535 | 10-01-20 | BBB- | 650 | 641,342 | |
| Seneca Gaming Corp., | ||||||
| Sr Note | 7.250 | 05-01-12 | BB | 875 | 881,562 | |
| Shingle Springs Tribal Gaming Authority, | ||||||
| Sr Note (S) | 9.375 | 06-15-15 | B | 200 | 202,000 | |
| Trump Entertainment Resorts, Inc., | ||||||
| Gtd Sr Sec Note (L) | 8.500 | 06-01-15 | B | 325 | 270,562 | |
| Turning Stone Casino Resort Enterprise, | ||||||
| Sr Note (S) | 9.125 | 09-15-14 | B+ | 1,540 | 1,593,900 | |
| Waterford Gaming LLC, | ||||||
| Sr Note (S) | 8.625 | 09-15-14 | BB- | 370 | 381,100 | |
| Commodity Chemicals 0.14% | 240,875 | |||||
|
| ||||||
| Sterling Chemicals, Inc., | ||||||
| Sr Sec Note (S) | 10.250 | 04-01-15 | B- | 235 | 240,875 | |
Page 2
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Construction & Farm Machinery & Heavy Trucks 0.30% | 497,500 | |||||
|
| ||||||
| Manitowoc Co., Inc. (The), | ||||||
| Gtd Sr Note | 7.125 | 11-01-13 | BB- | 500 | 497,500 | |
| Consumer Finance 2.82% | 4,750,168 | |||||
|
| ||||||
| CIT Group, Inc., | ||||||
| Sr Note | 5.000 | 02-13-14 | A | 375 | 338,605 | |
| Ford Motor Credit Co., | ||||||
| Note | 7.375 | 10-28-09 | B | 1,625 | 1,593,405 | |
| Sr Note | 9.875 | 08-10-11 | B | 295 | 298,796 | |
| Sr Note | 8.000 | 12-15-16 | B | 140 | 130,971 | |
| General Motors Acceptance Corp., | ||||||
| Note | 6.750 | 12-01-14 | BB+ | 550 | 498,507 | |
| Sr Note | 6.000 | 12-15-11 | BB+ | 465 | 429,185 | |
| HSBC Finance Capital Trust IX, | ||||||
| Gtd Note (5.911% to 11-30-15 | ||||||
| then variable) | 5.911 | 11-30-35 | A | 800 | 759,341 | |
| Nelnet, Inc., | ||||||
| Note | 7.400 | 09-29-36 | BBB- | 715 | 701,358 | |
| Department Stores 0.29% | 484,342 | |||||
|
| ||||||
| Penney, J.C. Co., Inc., | ||||||
| Deb | 7.650 | 08-15-16 | BBB- | 445 | 484,342 | |
| Diversified Banks 4.38% | 7,370,456 | |||||
|
| ||||||
| Banco Mercantil del Norte SA, | ||||||
| Sub Note (Mexico) (F)(S) | 6.862 | 10-13-21 | Baa2 | 685 | 683,751 | |
| Bank of New York, | ||||||
| Cap Security (S) | 7.780 | 12-01-26 | A- | 650 | 675,285 | |
| Barclays Bank Plc, | ||||||
| Perpetual Bond (6.860% to | ||||||
| 6-15-32 then variable) | ||||||
| (United Kingdom) (F)(S) | 6.860 | 09-29-49 | A+ | 1,655 | 1,620,746 | |
| Chuo Mitsui Trust & Banking Co. Ltd., | ||||||
| Perpetual Sub Note (5.506% to | ||||||
| 4-15-15 then variable) | ||||||
| (Japan) (F)(S) | 5.506 | 12-15-49 | Baa1 | 940 | 867,655 | |
| ICICI Bank Ltd., | ||||||
| Note (India) (F)(M)(S) | 6.625 | 10-03-12 | BBB- | 640 | 639,462 | |
| Lloyds TSB Group Plc, | ||||||
| Bond (United Kingdom) (F)(S) | 6.267 | 11-14-49 | A | 730 | 667,715 | |
| Royal Bank of Scotland Group Plc, | ||||||
| Jr Sub Bond (7.640% to | ||||||
| 9-29-17 then variable) | ||||||
| (United Kingdom) (F)(M) | 7.640 | 03-29-49 | A | 390 | 390,000 | |
| Perpetual Bond (7.648% to | ||||||
| 9-30-31 then variable) | ||||||
| (United Kingdom) (F) | 7.648 | 08-29-49 | A | 650 | 680,077 | |
Page 3
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Societe Generale, | ||||||
| Sub Note (France) (F)(S) | 5.922 | 04-05-49 | A+ | 460 | 435,758 | |
| Standard Chartered Plc, | ||||||
| Bond (Great Britain) (F)(P)(S) | 7.014 | 06-30-49 | BBB+ | 500 | 474,651 | |
| Sub Note (Great Britain) | ||||||
| (F)(L)(S) | 6.400 | 09-26-17 | A | 235 | 235,356 | |
| Diversified Chemicals 1.41% | 2,364,438 | |||||
|
| ||||||
| Mosiac Co. (The), | ||||||
| Sr Note (S) | 7.625 | 12-01-16 | BB- | 290 | 309,213 | |
| NOVA Chemicals Corp., | ||||||
| Med Term Note (Canada) (F)(L) | 7.400 | 04-01-09 | B+ | 2,045 | 2,055,225 | |
| Diversified Commercial & Professional Services | 0.46% | 778,822 | ||||
|
| ||||||
| Hutchison Whampoa International Ltd., | ||||||
| Gtd Sr Note (Cayman Islands) | ||||||
| (F)(S) | 6.500 | 02-13-13 | A- | 750 | 778,822 | |
| Diversified Financial Services 1.42% | 2,390,088 | |||||
|
| ||||||
| Comerica Capital Trust II, | ||||||
| Gtd Bond | 6.576 | 02-20-37 | BBB+ | 350 | 316,253 | |
| Cosan Finance Ltd., | ||||||
| Gtd Bond (Brazil) (F)(L)(S) | 7.000 | 02-01-17 | BB | 300 | 288,000 | |
| Huntington Capital III, | ||||||
| Gtd Sub Bond (P) | 6.650 | 05-15-37 | BBB- | 590 | 558,775 | |
| QBE Capital Funding II LP, | ||||||
| Gtd Sub Bond (Jersey Islands) | ||||||
| (F)(P)(S) | 6.797 | 06-29-49 | BBB | 695 | 681,493 | |
| SMFG Preferred Capital Ltd., | ||||||
| Perpetual Bond (6.078% to | ||||||
| 1-25-17 then variable) | ||||||
| (Cayman Islands) (F)(S) | 6.078 | 01-25-49 | BBB | 590 | 545,567 | |
| Diversified Metals & Mining 0.39% | 649,475 | |||||
|
| ||||||
| Freeport-McMoRan Copper & Gold, Inc., | ||||||
| Sr Note | 8.375 | 04-01-17 | BB | 130 | 142,025 | |
| Vedanta Resources Plc, | ||||||
| Sr Note (United Kingdom) | ||||||
| (F)(S) | 6.625 | 02-22-10 | BB | 510 | 507,450 | |
| Diversified REITs 0.17% | 280,228 | |||||
|
| ||||||
| HRPT Properties Trust, | ||||||
| Sr Note | 6.650 | 01-15-18 | BBB | 285 | 280,228 | |
| Drug Retail 0.34% | 570,990 | |||||
|
| ||||||
| CVS Caremark Corp., | ||||||
| Sr Note | 5.750 | 06-01-17 | BBB+ | 585 | 570,990 | |
| Electric Utilities 5.51% | 9,275,108 | |||||
|
| ||||||
| Abu Dhabi National Energy Co., | ||||||
| Bond (United Arab Emirates) | ||||||
| (F)(S) | 6.500 | 10-27-36 | A+ | 935 | 925,545 | |
Page 4
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| AES Eastern Energy LP, | |||||||
| Sr Pass Thru Ctf Ser 1999-A | 9.000 | 01-02-17 | BB+ | 1,005 | 1,060,673 | ||
| Beaver Valley Funding Corp., | |||||||
| Sec Lease Obligation Bond | 9.000 | 06-01-17 | BBB- | 736 | 816,077 | ||
| BVPS II Funding Corp., | |||||||
| Collateralized Lease Bond | 8.890 | 06-01-17 | BBB- | 700 | 785,578 | ||
| FPL Energy National Wind, | |||||||
| Sr Sec Note (S) | 5.608 | 03-10-24 | BBB- | 347 | 341,994 | ||
| HQI Transelect Chile SA, | |||||||
| Sr Note (Chile) (F) | 7.875 | 04-15-11 | BBB- | 1,230 | 1,304,136 | ||
| Indiantown Cogeneration LP, | |||||||
| 1st Mtg Note Ser A-9 | 9.260 | 12-15-10 | BB+ | 338 | 356,945 | ||
| IPALCO Enterprises, Inc., | |||||||
| Sr Sec Note | 8.625 | 11-14-11 | BB- | 325 | 343,688 | ||
| Monterrey Power SA de CV, | |||||||
| Sr Sec Bond (Mexico) (F)(S) | 9.625 | 11-15-09 | BBB | 514 | 553,410 | ||
| Pepco Holdings, Inc., | |||||||
| Note | 6.450 | 08-15-12 | BBB- | 565 | 588,406 | ||
| PNPP II Funding Corp., | |||||||
| Deb | 9.120 | 05-30-16 | BBB- | 458 | 520,833 | ||
| TXU Corp., | |||||||
| Sec Bond | 7.460 | 01-01-15 | BB | 545 | 560,162 | ||
| Waterford 3 Funding Corp., | |||||||
| Sec Lease Obligation Bond | 8.090 | 01-02-17 | BBB- | 1,111 | 1,117,661 | ||
| Electronic Equipment Manufacturers 0.63% | 1,066,869 | ||||||
|
| |||||||
| Thomas & Betts Corp., | |||||||
| Sr Note | 7.250 | 06-01-13 | BBB- | 775 | 803,622 | ||
| Tyco Electronics Group SA, | |||||||
| Gtd Sr Bond (Luxembourg) | |||||||
| (F)(S) | 6.550 | 10-01-17 | BBB | 260 | 263,247 | ||
| Gas Utilities 0.59% | 999,226 | ||||||
|
| |||||||
| KN Capital Trust I, | |||||||
| Gtd Cap Security Ser B | 8.560 | 04-15-27 | B- | 445 | 431,650 | ||
| Southern Union Co., | |||||||
| Jr Sub Note | 7.200 | 11-01-66 | BB | 565 | 567,576 | ||
| Health Care Facilities 0.78% | 1,307,700 | ||||||
|
| |||||||
| Community Health Systems, Inc., | |||||||
| Sr Note (S) | 8.875 | 07-15-15 | B- | 280 | 287,700 | ||
| Sun Healthcare Group, Inc., | |||||||
| Sr Sub Note (S) | 9.125 | 04-15-15 | CCC+ | 1,000 | 1,020,000 | ||
| Health Care Services 0.56% | 942,550 | ||||||
|
| |||||||
| Alliance Imaging, Inc., | |||||||
| Sr Sub Note (L) | 7.250 | 12-15-12 | B- | 440 | 421,300 | ||
| HEALTHSOUTH Corp., | |||||||
| Gtd Sr Note (P) | 11.409 | 06-15-14 | CCC+ | 500 | 521,250 | ||
Page 5
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Industrial Machinery 0.27% | 449,807 | |||||
|
| ||||||
| Trinity Industries, Inc., | ||||||
| Pass Thru Ctf (S) | 7.755 | 02-15-09 | Baa2 | 457 | 449,807 | |
| Insurance 0.33% | 549,230 | |||||
|
| ||||||
| Merna Reinsurance Ltd., | ||||||
| Sub Note Ser B (P) | 7.110 | 07-07-10 | A2 | 550 | 549,230 | |
| Integrated Oil & Gas 1.15% | 1,943,560 | |||||
|
| ||||||
| Pemex Project Funding Master Trust, | ||||||
| Gtd Note | 9.125 | 10-13-10 | BBB | 615 | 679,883 | |
| Petro-Canada, | ||||||
| Deb (Canada) (F) | 9.250 | 10-15-21 | BBB | 1,000 | 1,263,677 | |
| Integrated Telecommunication Services 2.56% | 4,300,836 | |||||
|
| ||||||
| Axtel SAB de CV, | ||||||
| Sr Note (Mexico) (F)(S) | 7.625 | 02-01-17 | BB- | 520 | 512,200 | |
| Bellsouth Corp., | ||||||
| Deb | 6.300 | 12-15-15 | A | 957 | 988,243 | |
| Cincinnati Bell, Inc., | ||||||
| Gtd Sr Sub Note | 8.375 | 01-15-14 | B- | 325 | 324,188 | |
| Qwest Capital Funding, Inc., | ||||||
| Gtd Note | 7.000 | 08-03-09 | B+ | 1,000 | 1,005,000 | |
| Qwest Corp., | ||||||
| Sr Note | 7.875 | 09-01-11 | BBB- | 445 | 467,250 | |
| Sprint Capital Corp., | ||||||
| Gtd Sr Note | 6.900 | 05-01-19 | BBB+ | 1,000 | 1,003,955 | |
| Investment Banking & Brokerage 0.46% | 781,185 | |||||
|
| ||||||
| Mizuho Financial Group Cayman Ltd., | ||||||
| Gtd Sub Bond (Cayman Islands) | ||||||
| (F) | 8.375 | 12-29-49 | A2 | 750 | 781,185 | |
| IT Consulting & Other Services 0.24% | 403,269 | |||||
|
| ||||||
| NCR Corp., | ||||||
| Note | 7.125 | 06-15-09 | BBB- | 390 | 403,269 | |
| Leisure Products 0.14% | 228,986 | |||||
|
| ||||||
| Hasbro, Inc., | ||||||
| Sr Note | 6.300 | 09-15-17 | BBB | 230 | 228,986 | |
| Life & Health Insurance 0.43% | 715,771 | |||||
|
| ||||||
| Lincoln National Corp., | ||||||
| Jr Sub Bond | 6.050 | 04-20-17 | A- | 250 | 240,723 | |
| Provident Financing Trust I, | ||||||
| Gtd Cap Security (L) | 7.405 | 03-15-38 | B+ | 485 | 475,048 | |
Page 6
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Marine 1.05% | 1,763,000 | |||||
|
| ||||||
| CMA CGM SA, | ||||||
| Sr Note (France) (F)(S) | 7.250 | 02-01-13 | BB+ | 700 | 679,000 | |
| Minerva Overseas Ltd., | ||||||
| Gtd Note (Cayman Islands) | ||||||
| (F)(S) | 9.500 | 02-01-17 | B | 680 | 671,500 | |
| Navios Maritime Holdings, Inc., | ||||||
| Sr Note (Marshall Islands) | ||||||
| (F)(S) | 9.500 | 12-15-14 | B | 400 | 412,500 | |
| Metal & Glass Containers 0.67% | 1,128,750 | |||||
|
| ||||||
| Blaze Recycling & Metals LLC, | ||||||
| Sr Sec Note (S) | 10.875 | 07-15-12 | B | 120 | 120,000 | |
| Owens-Brockway Glass Container, Inc., | ||||||
| Gtd Sr Note | 8.250 | 05-15-13 | B | 500 | 517,500 | |
| Vitro SAB de CV, | ||||||
| Sr Note Ser WI (Mexico) (F) | 9.125 | 02-01-17 | B | 500 | 491,250 | |
| Movies & Entertainment 0.19% | 322,131 | |||||
|
| ||||||
| Cinemark, Inc., | ||||||
| Sr Disc Note, Step Coupon | ||||||
| (O)(P) | 9.750 | 03-15-14 | CCC+ | 245 | 231,525 | |
| Qubecor Media, Inc., | ||||||
| Note (Canada) (F)(M)(S) | 7.750 | 03-15-16 | B | 95 | 90,606 | |
| Multi-Line Insurance 1.69% | 2,843,161 | |||||
|
| ||||||
| Genworth Financial, Inc., | ||||||
| Jr Sub Note | 6.150 | 11-15-66 | BBB+ | 430 | 402,088 | |
| Horace Mann Educators Corp., | ||||||
| Sr Note | 6.850 | 04-15-16 | BBB | 395 | 407,059 | |
| Liberty Mutual Group, | ||||||
| Bond (S) | 7.500 | 08-15-36 | BBB | 885 | 907,152 | |
| Jr Gtd Sub Bond (S) | 7.800 | 03-15-37 | BB+ | 705 | 686,112 | |
| Sul America Participacoes SA, | ||||||
| Bond (Brazil) (F)(S) | 8.625 | 02-15-12 | B | 430 | 440,750 | |
| Multi-Media 0.66% | 1,117,137 | |||||
|
| ||||||
| News America Holdings, | ||||||
| Gtd Sr Deb | 7.750 | 01-20-24 | BBB | 1,020 | 1,117,137 | |
| Multi-Utilities 1.43% | 2,409,717 | |||||
|
| ||||||
| CalEnergy Co., Inc., | ||||||
| Sr Bond | 8.480 | 09-15-28 | BBB+ | 550 | 670,889 | |
| Dynegy-Roseton Danskamme, | ||||||
| Gtd Pass Thru Ctf Ser B | 7.670 | 11-08-16 | B | 500 | 502,500 | |
| Salton Sea Funding Corp., | ||||||
| Sec Note Ser C | 7.840 | 05-30-10 | BBB- | 1,204 | 1,236,328 | |
| Office Services & Supplies 0.41% | 685,776 | |||||
|
| ||||||
| Xerox Corp., | ||||||
| Sr Note | 6.750 | 02-01-17 | BB+ | 670 | 685,776 | |
Page 7
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Oil & Gas Drilling 0.36% | 604,442 | |||||
|
| ||||||
| Allis-Chalmers Energy, Inc., | ||||||
| Gtd Sr Note | 8.500 | 03-01-17 | B | 335 | 324,113 | |
| Delek & Avner-Yam Tethys Ltd., | ||||||
| Sr Sec Note (Israel) (F)(S) | 5.326 | 08-01-13 | BBB- | 281 | 280,329 | |
| Oil & Gas Refining & Marketing 0.27% | 454,057 | |||||
|
| ||||||
| Premcor Refining Group, Inc., | ||||||
| Sr Note | 9.500 | 02-01-13 | BBB | 430 | 454,057 | |
| Oil & Gas Storage & Transportation 1.18% | 1,983,590 | |||||
|
| ||||||
| Markwest Energy Partners LP/Markwest | ||||||
| Energy Finance Corp., | ||||||
| Gtd Sr Note Ser B | 8.500 | 07-15-16 | B | 545 | 536,825 | |
| TEPPCO Partners LP, | ||||||
| Jr Sub Note (P) | 7.000 | 06-01-67 | BB | 695 | 630,765 | |
| Williams Partners LP, | ||||||
| Gtd Sr Note | 7.250 | 02-01-17 | BB+ | 800 | 816,000 | |
| Paper Packaging 0.83% | 1,389,513 | |||||
|
| ||||||
| Smurfit-Stone Container Enterprises, Inc., | ||||||
| Sr Note | 8.375 | 07-01-12 | CCC+ | 1,000 | 1,000,000 | |
| Sr Note | 8.000 | 03-15-17 | CCC+ | 245 | 240,713 | |
| US Corrugated, Inc., | ||||||
| Sr Sec Note | 10.000 | 06-01-13 | CCC+ | 160 | 148,800 | |
| Paper Products 1.09% | 1,837,793 | |||||
|
| ||||||
| Graphic Packaging International Corp., | ||||||
| Sr Note | 8.500 | 08-15-11 | B- | 445 | 452,788 | |
| Plum Creek Timber Co., Inc., | ||||||
| Gtd Note | 5.875 | 11-15-15 | BBB- | 365 | 355,005 | |
| Verso Paper Holdings LLC, | ||||||
| Sr Sec Note (S) | 9.125 | 08-01-14 | B+ | 1,000 | 1,030,000 | |
| Property & Casualty Insurance 0.96% | 1,619,352 | |||||
|
| ||||||
| Chubb Corp. (The), | ||||||
| Sub Note (L) | 6.375 | 03-29-67 | BBB+ | 500 | 497,051 | |
| Ohio Casualty Corp., | ||||||
| Sr Note | 7.300 | 06-15-14 | BBB- | 750 | 802,140 | |
| Progressive Corp., | ||||||
| Jr Sub Deb (P) | 6.700 | 06-15-37 | A- | 330 | 320,161 | |
| Publishing 0.21% | 354,113 | |||||
|
| ||||||
| Idearc, Inc., | ||||||
| Gtd Sr Note | 8.000 | 11-15-16 | B+ | 355 | 354,113 | |
Page 8
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Real Estate Management & Development 1.61% | 2,708,233 | |||||
|
| ||||||
| Healthcare Realty Trust, Inc., | ||||||
| Sr Note | 8.125 | 05-01-11 | BBB- | 175 | 187,460 | |
| Health Care REIT, Inc., | ||||||
| Sr Note | 6.200 | 06-01-16 | BBB- | 505 | 489,613 | |
| Post Apartment Homes, | ||||||
| Sr Note | 5.125 | 10-12-11 | BBB | 870 | 851,185 | |
| Shimao Property Holding Ltd., | ||||||
| Gtd Sr Note (Cayman Islands) | ||||||
| (F)(S) | 8.000 | 12-01-16 | BB+ | 940 | 930,600 | |
| Ventas Realty LP/Capital Corp., | ||||||
| Sr Note | 6.625 | 10-15-14 | BB+ | 250 | 249,375 | |
| Regional Banks 1.37% | 2,300,214 | |||||
|
| ||||||
| NB Capital Trust IV, | ||||||
| Gtd Cap Security | 8.250 | 04-15-27 | A | 1,170 | 1,217,654 | |
| Sovereign Capital Trust VI, | ||||||
| Gtd Note | 7.908 | 06-13-36 | BB+ | 480 | 506,518 | |
| SunTrust Capital VIII, | ||||||
| Gtd Bond (6.100% to 12-15-36 | ||||||
| then variable) | 6.100 | 12-01-66 | A- | 635 | 576,042 | |
| Semiconductors 0.57% | 965,000 | |||||
|
| ||||||
| Freescale Semiconductor, Inc., | ||||||
| Sr Note (S) | 8.875 | 12-15-14 | B | 1,000 | 965,000 | |
| Soft Drinks 0.61% | 1,025,268 | |||||
|
| ||||||
| Panamerican Beverages, Inc., | ||||||
| Sr Note (Panama) (F) | 7.250 | 07-01-09 | BBB+ | 1,000 | 1,025,268 | |
| Specialized Finance 2.40% | 4,044,630 | |||||
|
| ||||||
| Astoria Depositor Corp., | ||||||
| Pass Thru Ctf Ser B (G)(S) | 8.144 | 05-01-21 | BB | 1,000 | 1,080,000 | |
| Bosphorous Financial Services, | ||||||
| Sec Floating Rate Note (P)(S) | 7.160 | 02-15-12 | Baa2 | 500 | 495,025 | |
| Drummond Co., Inc., | ||||||
| Sr Note (L)(S) | 7.375 | 02-15-16 | BB- | 500 | 465,000 | |
| ESI Tractebel Acquistion Corp., | ||||||
| Gtd Sec Bond Ser B | 7.990 | 12-30-11 | BB | 862 | 889,012 | |
| Graftech Finance, Inc., | ||||||
| Gtd Sr Note | 10.250 | 02-15-12 | B | 333 | 347,152 | |
| USB Realty Corp., | ||||||
| Perpetual Bond (6.091% to | ||||||
| 1-15-12 then variable) (S) | 6.091 | 12-15-49 | A+ | 800 | 768,441 | |
| Specialty Chemicals 0.34% | 563,750 | |||||
|
| ||||||
| American Pacific Corp., | ||||||
| Sr Note (S) | 9.000 | 02-01-15 | B | 550 | 563,750 | |
Page 9
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Steel 0.39% | 651,725 | |||||
|
| ||||||
| WCI Steel Acquisition, Inc., | ||||||
| Sr Sec Note (G) | 8.000 | 05-01-16 | B+ | 655 | 651,725 | |
| Thrifts & Mortgage Finance 27.43% | 46,144,222 | |||||
|
| ||||||
| American Home Mortgage Assets, | ||||||
| Mtg Pass Thru Ctf Ser 2006-6 | ||||||
| Class XP IO (P) | Zero | 12-25-46 | AAA | 14,247 | 703,463 | |
| American Tower Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2007-1A | ||||||
| Class D (S) | 5.957 | 04-15-37 | BBB | 865 | 819,994 | |
| Banc of America Commercial Mortgage, | ||||||
| Inc., | ||||||
| Mtg Pass Thru Ctf Ser 2005-6 | ||||||
| Class A4 (P) | 5.353 | 09-10-47 | AAA | 300 | 296,500 | |
| Banc of America Funding Corp., | ||||||
| Mtg Pass Thru Ctf Ser 2006-B | ||||||
| Class 6A1 (P) | 5.881 | 03-20-36 | AAA | 1,088 | 1,098,295 | |
| Mtg Pass Thru Ctf Ser 2006-D | ||||||
| Class 6B2 (P) | 5.947 | 05-20-36 | AA | 1,827 | 1,684,189 | |
| Bear Stearns Adjustable Rate Mortgage | ||||||
| Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-1 | ||||||
| Class B2 (P) | 4.885 | 03-25-35 | AA+ | 847 | 848,215 | |
| Bear Stearns Alt-A Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-3 | ||||||
| Class B2 (P) | 5.304 | 04-25-35 | AA+ | 597 | 601,564 | |
| Mtg Pass Thru Ctf Ser 2006-1 | ||||||
| Class 23A1 (P) | 5.623 | 02-25-36 | AAA | 927 | 920,857 | |
| Mtg Pass Thru Ctf Ser 2006-4 | ||||||
| Class 3B1 | 6.342 | 07-25-36 | AA | 2,526 | 2,532,046 | |
| Bear Stearns Commercial Mortgage | ||||||
| Securities, Inc., | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-PW14 Class D (P)(S) | 5.412 | 12-01-38 | A | 655 | 586,366 | |
| Citigroup Mortgage Loan Trust, Inc., | ||||||
| Mtg Pass Thru Ctf Ser 2005-5 | ||||||
| Class 2A3 | 5.000 | 08-25-35 | AAA | 539 | 526,010 | |
| Mtg Pass Thru Ctf Ser 2005-10 | ||||||
| Class 1A5A (P) | 5.843 | 12-25-35 | AAA | 801 | 806,999 | |
| Citigroup/Deutsche Bank Commercial | ||||||
| Mortgage Trust, | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-CD1 Class C (P) | 5.400 | 07-15-44 | AA | 295 | 282,705 | |
| ContiMortgage Home Equity Loan Trust, | ||||||
| Pass Thru Ctf Ser 1995-2 | ||||||
| Class A-5 | 8.100 | 08-15-25 | AAA | 84 | 83,638 | |
| Countrywide Alternative Loan Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-59 | ||||||
| Class 2X IO (P) | 1.785 | 11-20-35 | AAA | 8,459 | 293,413 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-0A8 Class X IO | 2.000 | 06-25-47 | AAA | 7,324 | 265,507 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-0A8 Class X IO (P) | 5.983 | 07-25-46 | AAA | 10,776 | 404,108 | |
Page 10
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-0A10 Class XPP IO (P) | 1.950 | 08-25-46 | AAA | 5,654 | 220,840 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-0A12 Class X IO (P) | 2.171 | 09-20-46 | AAA | 19,196 | 875,799 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-11CB Class 3A1 | 6.500 | 05-25-36 | Aaa | 3,302 | 3,334,693 | |
| Crown Castle Towers LLC, | ||||||
| Mtg Pass Thru Ctf Ser 2006-1A | ||||||
| Class G | 6.795 | 11-15-36 | Ba2 | 3,000 | 2,903,490 | |
| DB Master Finance LLC, | ||||||
| Sub Bond Ser 2006-1 | ||||||
| Class M1 (S) | 8.285 | 06-20-31 | BB | 340 | 349,218 | |
| Dominos Pizza Master Issuer LLC, | ||||||
| Mtg Pass Thru Ctf Ser 2007-1 | ||||||
| Class M1 (S) | 7.629 | 04-25-37 | BB | 1,000 | 967,650 | |
| First Horizon Alternative Mortgage | ||||||
| Securities, | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2004-AA5 Class B1 (P) | 5.215 | 12-25-34 | AA | 468 | 461,462 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-AA2 Class B1 (G)(P) | 6.189 | 05-25-36 | AA | 1,547 | 1,584,964 | |
| Global Signal Trust, | ||||||
| Sub Bond Ser 2004-2A | ||||||
| Class D (S) | 5.093 | 12-15-14 | Baa2 | 495 | 485,877 | |
| Sub Bond Ser 2006-1 | ||||||
| Class E (S) | 6.495 | 02-15-36 | Baa3 | 460 | 453,109 | |
| GSR Mortgage Loan Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2004-9 | ||||||
| Class B1 (G)(P) | 5.3417 | 08-25-34 | AA | 1,014 | 1,010,322 | |
| Mtg Pass Thru Ctf Ser 2006-4F | ||||||
| Class 6A1 | 6.500 | 05-25-36 | AAA | 4,019 | 4,076,902 | |
| Harborview Mortgage Loan Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-8 | ||||||
| Class 1X IO (P) | 1.579 | 09-19-35 | AAA | 8,079 | 232,266 | |
| Mtg Pass Thru Ctf Ser 2007-4 | ||||||
| Class ES IO (G)(S) | Zero | 07-19-47 | AAA | 24,647 | 219,509 | |
| Mtg Pass Thru Ctf Ser 2007-6 | ||||||
| Class ES IO (G)(S) | Zero | 11-19-15 | AAA | 17,518 | 134,123 | |
| Sub Bond Ser 2007-3 Class ES | ||||||
| IO (G)(S) | Zero | 05-19-47 | AAA | 24,610 | 188,418 | |
| Indymac Index Mortgage Loan Trust, | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-AR5 Class B1 (P) | 5.397 | 05-25-35 | AA | 512 | 516,402 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2004-AR13 Class B1 | 5.296 | 01-25-35 | AA | 389 | 393,051 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-AR18 Class 1X IO | Zero | 10-25-36 | AAA | 17,776 | 477,727 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-AR19 Class 1B1 (P) | 6.409 | 08-25-36 | AA | 453 | 467,728 | |
| JP Morgan Chase Commercial Mortgage | ||||||
| Security Corp., | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-LDP4 Class B | 5.129 | 10-15-42 | Aa2 | 2,035 | 1,929,543 |
Page 11
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| JP Morgan Mortgage Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-S3 | ||||||
| Class 2A2 | 5.500 | 01-25-21 | AAA | 907 | 898,668 | |
| Merrill Lynch Mortgage Investors Trust, | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-AF1 Class MF1 | 6.104 | 08-25-36 | AA | 1,225 | 1,161,784 | |
| Morgan Stanley Capital I, | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-HQ7 Class A4 (P) | 5.374 | 11-14-42 | AAA | 840 | 829,161 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2006-IQ12 Class E | 5.538 | 12-15-43 | A+ | 640 | 586,764 | |
| Provident Funding Mortgage Loan Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-1 | ||||||
| Class B1 (P) | 4.348 | 05-25-35 | AA | 419 | 411,193 | |
| Residential Accredit Loans, Inc., | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-QA12 Class NB5 (P) | 5.959 | 12-25-35 | AAA | 3,364 | 3,386,320 | |
| SBA CMBS Trust, | ||||||
| Sub Bond Ser 2005-1A | ||||||
| Class D (S) | 6.219 | 11-15-35 | Baa2 | 225 | 223,777 | |
| Sub Bond Ser 2005-1A | ||||||
| Class E (S) | 6.706 | 11-15-35 | Baa3 | 200 | 199,196 | |
| Sub Bond Ser 2006-1A | ||||||
| Class H (S) | 7.389 | 11-15-36 | Ba3 | 365 | 349,208 | |
| Sub Bond Ser 2006-1A | ||||||
| Class J (S) | 7.825 | 11-15-36 | B1 | 220 | 206,723 | |
| Washington Mutual Alternative Loan Trust, | ||||||
| Mtg Pass Thru Ctf Ser 2005-6 | ||||||
| Class 1CB | 6.500 | 08-25-35 | AAA | 514 | 519,013 | |
| Washington Mutual, Inc., | ||||||
| Mtg Pass Thru Ctf | ||||||
| Ser 2005-AR4 Class B1 (P) | 4.672 | 04-25-35 | AA | 1,512 | 1,467,943 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2007-0A4 Class XPPP IO | Zero | 04-25-47 | Aaa | 20,083 | 367,523 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2007-0A5 Class 1XPP IO | Zero | 06-25-47 | Aaa | 46,889 | 622,690 | |
| Mtg Pass Thru Ctf | ||||||
| Ser 2007-0A6 Class 1XPP IO | Zero | 07-25-47 | Aaa | 27,280 | 343,732 | |
| Mtg Pass Thru Ctf Ser 2007-1 | ||||||
| Class B1 | 6.205 | 02-25-37 | AA | 575 | 533,565 | |
| Tires & Rubber 0.18% | 297,825 | |||||
|
| ||||||
| Goodyear Tire & Rubber Co. (The), | ||||||
| Sr Note (S) | 8.625 | 12-01-11 | B | 285 | 297,825 | |
| Tobacco 0.77% | 1,295,808 | |||||
|
| ||||||
| Alliance One International, Inc., | ||||||
| Gtd Sr Note (S) | 8.500 | 05-15-12 | B | 245 | 240,100 | |
| Reynolds American, Inc., | ||||||
| Gtd Sr Sec Note | 7.250 | 06-01-13 | BB | 1,000 | 1,055,708 | |
Page 12
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Wireless Telecommunication Services 2.56% | 4,301,668 | |||||||
|
| ||||||||
| Citizens Communications Co., | ||||||||
| Sr Note | 6.250 | 01-15-13 | BB+ | 460 | 448,500 | |||
| Crown Castle Towers LLC, | ||||||||
| Sub Bond Ser 2005-1A Class D | 5.612 | 06-15-35 | Baa2 | 1,340 | 1,316,255 | |||
| Digicel Group Ltd., | ||||||||
| Sr Note (Bermuda) (F)(S) | 8.875 | 01-15-15 | Caa2 | 580 | 545,200 | |||
| Dobson Cellular Systems, Inc., | ||||||||
| Gtd Sr Sec Note | 9.875 | 11-01-12 | B- | 1,000 | 1,080,000 | |||
| Mobile Telesystems Finance SA, | ||||||||
| Gtd Sr Note (Luxembourg) | ||||||||
| (F)(S) | 9.750 | 01-30-08 | BB- | 400 | 403,560 | |||
| Nextel Communications, Inc., | ||||||||
| Sr Note Ser D | 7.375 | 08-01-15 | BBB | 500 | 508,153 | |||
| Credit | ||||||||
| Issuer, description | rating (A) | Shares | Value | |||||
| Preferred stocks 4.88% | $8,204,779 | |||||||
|
| ||||||||
| (Cost $7,978,883) | ||||||||
| Agricultural Products 0.65% | 1,086,329 | |||||||
|
| ||||||||
| Ocean Spray Cranberries, Inc., 6.25%, | ||||||||
| Ser A (S) | BB+ | 12,500 | 1,086,329 | |||||
| Broadcasting & Cable TV 0.59% | 998,800 | |||||||
|
| ||||||||
| CBS Corp., 7.250% | BBB | 40,000 | 998,800 | |||||
| Diversified Banks 0.82% | 1,379,400 | |||||||
|
| ||||||||
| Bank One Capital Trust VI, 7.20% | A- | 55,000 | 1,379,400 | |||||
| Diversified Metals & Mining 0.92% | 1,551,000 | |||||||
|
| ||||||||
| Freeport McMoRan Copper & Gold, Inc., | ||||||||
| 6.75%, Conv | B+ | 10,000 | 1,551,000 | |||||
| Integrated Telecommunication Services 0.56% | 943,600 | |||||||
|
| ||||||||
| Telephone & Data Systems, Inc., 7.60%, | ||||||||
| Ser A | BB+ | 40,000 | 943,600 | |||||
| Real Estate Management & Development 1.34% | 2,245,650 | |||||||
|
| ||||||||
| Apartment Investment & Management Co., | ||||||||
| 8.00%, Ser T | B+ | 55,000 | 1,361,250 | |||||
| Public Storage, Inc., 6.50%, Depositary | ||||||||
| Shares, Ser W | BBB+ | 40,000 | 884,400 | |||||
Page 13
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Credit | Par value | ||||||
| Issuer, description, maturity date | rating (A) | (000) | Value | ||||
| Tranche loans 0.41% | $696,608 | ||||||
| (Cost $693,997) | |||||||
|
| |||||||
| Education Services 0.11% | 196,608 | ||||||
|
| |||||||
| Riverdeep Interactive Learning Ltd., | |||||||
| Tranche B | |||||||
| Tranche B, 11-28-13 | B | $199 | 196,608 | ||||
| Hotels, Resorts & Cruise Lines 0.30% | 500,000 | ||||||
|
| |||||||
| East Valley Tourist Development | |||||||
| Authority, | |||||||
| Tranche (Fac LN5501750), | |||||||
| 8-06-12 (G) | B3 | 500 | 500,000 | ||||
| Interest | Maturity | Credit | Par value | ||||
| Issuer, description | rate | date | rating (A) | (000) | Value | ||
| U.S. government and agencies securities 62.17% | $104,589,794 | ||||||
|
| |||||||
| (Cost $104,919,339) | |||||||
| Government U.S. Agency 62.17% | 104,589,794 | ||||||
|
| |||||||
| Federal Home Loan Mortgage Corp., | |||||||
| 20 Yr Pass Thru Ctf | 11.250 | 01-01-16 | AAA | 15 | 15,515 | ||
| 30 Yr Adj Rate Pass Thru | |||||||
| Ctf (P) | 5.157 | 11-01-35 | AAA | 2,049 | 2,008,672 | ||
| 30 Yr Pass Thru Ctf | 6.000 | 08-01-34 | AAA | 2,026 | 2,028,746 | ||
| 30 Yr Pass Thru Ctf | 5.500 | 04-01-33 | AAA | 1,604 | 1,575,342 | ||
| 30 Yr Pass Thru Ctf | 5.500 | 05-15-35 | AAA | 3,000 | 2,899,820 | ||
| CMO REMIC 2978-CL | 5.500 | 01-15-31 | AAA | 2,695 | 2,677,743 | ||
| CMO REMIC 3174-CB | 5.500 | 02-15-31 | AAA | 300 | 301,132 | ||
| CMO-REMIC 3294-NB | 5.500 | 12-15-29 | AAA | 340 | 338,031 | ||
| CMO-REMIC 3320-PB | 5.500 | 11-15-31 | AAA | 1,030 | 1,030,166 | ||
| Federal National Mortgage Assn., | |||||||
| 15 Yr Pass Thru Ctf | 7.000 | 09-01-10 | AAA | 16 | 15,886 | ||
| 15 Yr Pass Thru Ctf | 7.000 | 09-01-12 | AAA | 3 | 2,796 | ||
| 15 Yr Pass Thru Ctf | 7.000 | 04-01-17 | AAA | 33 | 34,041 | ||
| 15 Yr Pass Thru Ctf | 6.000 | 05-01-21 | AAA | 780 | 790,268 | ||
| 30 Yr Adj Rate Pass Thru | |||||||
| Ctf (P) | 5.757 | 04-01-37 | AAA | 7,402 | 7,406,064 | ||
| 30 Yr Adj Rate Pass Thru | |||||||
| Ctf (P) | 5.315 | 11-01-35 | AAA | 3,545 | 3,515,011 | ||
Page 14
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| 30 Yr Pass Thru Ctf | 6.500 | 07-01-36 | AAA | 385 | 392,233 | |
| 30 Yr Pass Thru Ctf | 6.500 | 12-01-36 | AAA | 408 | 415,470 | |
| 30 Yr Pass Thru Ctf | 6.500 | 08-01-37 | AAA | 2,980 | 3,034,881 | |
| 30 Yr Pass Thru Ctf | 6.000 | 05-01-35 | AAA | 3,241 | 3,245,744 | |
| 30 Yr Pass Thru Ctf | 6.000 | 08-01-35 | AAA | 1,829 | 1,833,631 | |
| 30 Yr Pass Thru Ctf | 6.000 | 04-01-36 | AAA | 1,689 | 1,691,576 | |
| 30 Yr Pass Thru Ctf | 6.000 | 08-01-36 | AAA | 11,982 | 12,001,440 | |
| 30 Yr Pass Thru Ctf | 6.000 | 09-01-36 | AAA | 16,241 | 16,268,137 | |
| 30 Yr Pass Thru Ctf | 6.000 | 11-01-36 | AAA | 2,294 | 2,297,430 | |
| 30 Yr Pass Thru Ctf | 6.000 | 12-01-36 | AAA | 3,527 | 3,533,238 | |
| 30 Yr Pass Thru Ctf | 6.000 | 01-01-37 | AAA | 656 | 656,628 | |
| 30 Yr Pass Thru Ctf | 6.000 | 05-01-37 | AAA | 4,187 | 4,193,145 | |
| 30 Yr Pass Thru Ctf | 6.000 | 07-01-37 | AAA | 3,149 | 3,153,566 | |
| 30 Yr Pass Thru Ctf | 5.500 | 04-01-35 | AAA | 1,948 | 1,912,252 | |
| 30 Yr Pass Thru Ctf | 5.500 | 11-01-35 | AAA | 1,728 | 1,694,920 | |
| 30 Yr Pass Thru Ctf | 5.500 | 01-01-36 | AAA | 2,260 | 2,216,614 | |
| 30 Yr Pass Thru Ctf | 5.500 | 02-01-36 | AAA | 4,298 | 4,215,241 | |
| 30 Yr Pass Thru Ctf | 5.500 | 03-01-37 | AAA | 8,734 | 8,554,711 | |
| 30 Yr Pass Thru Ctf | 5.500 | 05-01-37 | AAA | 597 | 584,399 | |
| 30 Yr Pass Thru Ctf | 5.500 | 06-01-37 | AAA | 5,244 | 5,136,884 | |
| CMO REMIC 2006-67-PD | 5.500 | 12-25-34 | AAA | 1,230 | 1,199,911 | |
| Note | 6.000 | 05-30-25 | AAA | 1,720 | 1,695,234 | |
| Government National Mortgage Assn., | ||||||
| 30 Yr Pass Thru Ctf | 10.000 | 11-15-20 | AAA | 4 | 4,917 | |
| 30 Yr Pass Thru Ctf | 9.500 | 01-15-21 | AAA | 4 | 4,594 | |
| 30 Yr Pass Thru Ctf | 9.500 | 02-15-25 | AAA | 13 | 13,765 | |
| Interest | Maturity | Par value | ||||
| Issuer, description, maturity date | rate | date | (000) | Value | ||
| Short-term investments 3.80% | $6,396,091 | |||||
|
| ||||||
| (Cost $6,395,824) | ||||||
| Government U.S. Agency 0.71% | 1,200,000 | |||||
|
| ||||||
| Federal Home Loan Bank, | ||||||
| Disc Note | 4.000%(Y) | 10-01-07 | $1,200 | 1,200,000 | ||
| Joint Repurchase Agreement 0.02% | 33,000 | |||||
|
| ||||||
| Joint Repurchase Agreement with Barclays | ||||||
| Plc dated 9-28-07 at 3.950% to be | ||||||
| repurchased at $33,011 on 10-1-07, | ||||||
| collateralized by $21,202 of U.S. | ||||||
| Treasury Inflation Indexed Bond, 3.625%, | ||||||
| due 4-15-28 (valued at $33,660, including | ||||||
| interest) 3.950% | 33 | 33,000 | ||||
| Shares | ||||||
|
| ||||||
| Cash Equivalents 3.07% | 5,163,091 | |||||
|
| ||||||
| John Hancock Cash Investment Trust (T)(W) | 5,163,091 | 5,163,091 | ||||
Page 15
John Hancock
Income Securities Trust
Securities owned by the Fund on
September 30, 2007 (unaudited)
| Total investments (Cost $262,647,158) 154.66% | $260,187,273 | |
|
| ||
| Other assets and liabilities, net (1.74%) | ($2,929,792) | |
|
| ||
| Fund preferred shares, at liquidation value (52.92%) | ($89,021,969) | |
|
| ||
| Total net assets applicable to common shareholders 100.00% | $168,235,512 | |
|
| ||
The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common shareholders.
Page 16
John Hancock
Income Securities Trust
Financial futures contracts
September 30, 2007 (unaudited)
| Number of | |||||
| Open contracts | contracts | Position | Expiration | Depreciation | |
|
| |||||
| U.S. 10-year Treasury Note | 274 | Short | Dec 07 | $27,606 | |
Financial futures contracts
John Hancock
Income Securities Trust
Interest rate swap contracts
September 30, 2007 (unaudited)
| Rate type | ||||||
|
|
||||||
| Notional | Payments made | Payments received | Termination | |||
| amount | by Fund | by Fund | date | Appreciation | ||
|
| ||||||
| $29,000,000 | 5.70% (a) | 3-month LIBOR | September 2010 | $40,652 | ||
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| $40,652 | ||||||
(a) Fixed rate
Interest rate swap contracts
John Hancock
Income Securities Trust
Notes to Schedule of Investments
September 30, 2007 (unaudited)
IO Interest only (carries notional principal)
REIT Real Estate Investment Trust
(A) Credit ratings are unaudited and are rated by Moody's Investors Service where Standard & Poor's ratings are not available unless indicated otherwise.
(F) Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer; however, security is U.S. dollar-denominated.
(G) Security rated internally by John Hancock Advisers, LLC.
(L) All or a portion of this security is on loan as of September 30, 2007.
(M) These securities having an aggregate value of $1,891,768, or 1.12% of the net assets applicable to common shareholders, have been purchased as forward commitments - that is, the Fund has agreed on trade date to take delivery of and to make payment for these securities on a delayed basis subsequent to the date of this schedule. The purchase price and interest rate of these securities are fixed at trade date, although the Fund does not earn any interest on these until settlement date. The Fund has segregated assets with a current value at least equal to the amount of the forward commitments. Accordingly, the market value of $2,021,360 of Federal National Mortgage Assn., 6.000%, 6-1-36 has been segregated to cover the forward commitments.
(O) Cash interest will be paid on this obligation at the stated rate beginning on the stated date.
(P) Represents rate in effect on September 30, 2007.
(S) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $40,306,407, or 23.96% of the net assets applicable to common shareholders as of September 30, 2007.
(T) Represents investment of securities lending collateral.
(W) Issuer is an affiliate of John Hancock Advisers, LLC.
(Y) Represents current yield on September 30, 2007.
The cost of investments owned on September 30, 2007, including short-term investments, was $262,647,158. Gross unrealized appreciation and depreciation of investments aggregated $2,236,503 and $4,696,388, respectively, resulting in net unrealized depreciation of $2,459,885.
Notes to Schedule of Investments - Page 1
Notes to portfolio of investments
Security valuation
The net asset value of the common shares of the Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. Investments in John Hancock Cash Investment Trust (JHCIT), an affiliate of John Hancock Advisers, LLC (JHA), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of MFC, are valued at their net asset value each business day. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on a principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Securities for which there are no such quotations, principally debt securities, are valued based on the valuation provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data.
Other assets and securities for which no such quotations are readily available are valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of a Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees
Joint repurchase agreement
Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Fund, along with other registered investment companies having a management contract with John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (MFC), may participate in a joint repurchase agreement transaction. Aggregate cash balances are invested in one or more large repurchase agreements, whose underlying securities are obligations of the U.S. government and/or its agencies. The Fund’s custodian bank receives delivery of the underlying securities for the joint account on the Fund’s behalf. The Adviser is responsible for ensuring that the agreement is fully collateralized at all times.
Securities lending
The Fund may lend securities in amounts up to 331/3% of the Fund’s total assets. Such loans are callable at any time and are at all times fully secured by cash, cash equivalents or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, marked to market on a daily basis. The Fund may bear the risk of delay in recovery of, or even of rights in, the securities loaned should the borrower of the securities fail financially. The Fund receives compensation for lending its securities either in the form of fees or by retaining a portion of interest on the investment of any cash received as collateral. The Fund invests in cash collateral received in connection with securities lending transactions in JHCIT, a Delaware common law trust and an affiliated fund. JHCIT is exempt from registration under Section 3(c)(7) of the 1940 Act (pursuant to exemptive order issued by the SEC) and is managed by the Adviser, for which the Adviser receives an investment advisory fee of 0.04% of the average daily net assets of JHCIT.
Notes to Schedule of Investments - Page 2
All collateral received will be in an amount equal to at least 100% of the market value of the loaned securities and is intended to be maintained at that level during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund the next business day. During the loan period, the Fund continues to retain rights of ownership, including dividends and interest of the loaned securities.
Financial futures contracts
The Fund may purchase and sell financial futures contracts and options on those contracts. The Fund invests in contracts based on financial instruments such as U.S. Treasury Bonds or Notes or on securities indices such as the Standard & Poor’s 500 Index, in order to hedge against a decline in the value of securities owned by the Fund.
Initial margin deposits required upon entering into futures contracts are satisfied by the delivery of specific securities or cash as collateral to the broker (the Funds’ agent in acquiring the futures position). If the position is closed out by taking an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made, cash is required to be paid to or released by the broker and the Fund realizes a gain or loss.
When the Fund sells a futures contract based on a financial instrument, the Fund becomes obligated to deliver that kind of instrument at an agreed upon date for a specified price. The Fund realizes a gain or loss depending on whether the price of an offsetting purchase is less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase. The Fund could be exposed to risks if it could not close out futures positions because of an illiquid secondary market or the inability of counterparties to meet the terms of their contracts. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.
Swap contracts
The Fund may enter into swap transactions in order to hedge the value of the Fund’s portfolio against interest rate fluctuations or to enhance the Fund’s income. Interest rate swaps represent an agreement between two counterparties to exchange cash flows based on the difference in the two interest rates, applied to the notional principal amount for a specified period. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The Fund settles accrued net receivable or payable under the swap contracts on a periodic basis.
The Fund records changes in the value of the swaps as unrealized gains or losses on swap contracts. Net periodic payments accrued, but not yet received (paid) are included in change in the unrealized appreciation/ depreciation.
Accrued interest income and interest expense on the swap contracts are recorded as realized gain (loss).
Swap contracts are subject to risks related to the counterparty’s ability to perform under the contract, and may decline in value if the counterparty’s creditworthiness deteriorates.
The risks may arise from unanticipated movement in interest rates. The Fund may also suffer losses if it is unable to terminate outstanding swap contracts or reduce its exposure through offsetting transactions.
Notes to Schedule of Investments - Page 3
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Income Securities Trust
By: /s/ Keith F. Hartstein
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Keith F. Hartstein President and Chief Executive Officer
Date: November 19, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ Keith F. Hartstein
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Keith F. Hartstein
President and
Chief Executive Officer
Date: November 19, 2007
By: /s/ Charles A. Rizzo
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Charles A. Rizzo
Chief Financial Officer
Date: November 19, 2007