| 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) | |
| Salvatore Schiavone | |
| Treasurer | |
| 601 Congress Street | |
| Boston, Massachusetts 02210 | |
| (Name and address of agent for service) | |
| Registrant's telephone number, including area code: 617-663-4497 | |
| Date of fiscal year end: | October 31 |
| Date of reporting period: | July 31, 2014 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Corporate Bonds 69.3% (46.8% of Total Investments) | $128,769,494 | |||
|
| ||||
| (Cost $121,699,681) | ||||
| Consumer Discretionary 8.6% | 16,024,592 | |||
|
| ||||
| Auto Components 0.9% | ||||
| Dana Holding Corp. | 6.000 | 09/15/23 | $395,000 | 411,788 |
| Delphi Corp. (Z) | 5.000 | 02/15/23 | 1,005,000 | 1,079,119 |
| Stackpole International Intermediate Company SA (S) | 7.750 | 10/15/21 | 245,000 | 245,000 |
| Automobiles 2.2% | ||||
| Ford Motor Company | 4.750 | 01/15/43 | 145,000 | 145,487 |
| Ford Motor Credit Company LLC (Z) | 5.875 | 08/02/21 | 1,803,000 | 2,098,921 |
| Ford Motor Credit Company LLC | 8.000 | 12/15/16 | 330,000 | 380,518 |
| General Motors Company | 4.875 | 10/02/23 | 445,000 | 464,469 |
| General Motors Company | 6.250 | 10/02/43 | 380,000 | 430,350 |
| Nissan Motor Acceptance Corp. (S)(Z) | 1.950 | 09/12/17 | 490,000 | 493,999 |
| Hotels, Restaurants & Leisure 0.6% | ||||
| CCM Merger, Inc. (S) | 9.125 | 05/01/19 | 380,000 | 400,900 |
| Seminole Tribe of Florida, Inc. (S)(Z) | 6.535 | 10/01/20 | 650,000 | 721,500 |
| Waterford Gaming LLC (S) | 8.625 | 09/15/14 | 133,522 | 29,709 |
| Internet & Catalog Retail 0.3% | ||||
| QVC, Inc. | 4.375 | 03/15/23 | 325,000 | 326,416 |
| QVC, Inc. (Z) | 5.125 | 07/02/22 | 255,000 | 269,873 |
| Media 3.0% | ||||
| 21st Century Fox America, Inc. (Z) | 6.150 | 03/01/37 | 165,000 | 195,155 |
| 21st Century Fox America, Inc. (Z) | 6.400 | 12/15/35 | 150,000 | 184,056 |
| 21st Century Fox America, Inc. (Z) | 7.600 | 10/11/15 | 1,000,000 | 1,071,974 |
| 21st Century Fox America, Inc. (Z) | 7.750 | 01/20/24 | 1,020,000 | 1,287,151 |
| AMC Entertainment, Inc. | 5.875 | 02/15/22 | 390,000 | 395,850 |
| CBS Corp. (Z) | 7.875 | 07/30/30 | 595,000 | 786,213 |
| Myriad International Holdings BV (S) | 6.000 | 07/18/20 | 200,000 | 220,500 |
| Sirius XM Radio, Inc. (S)(Z) | 5.250 | 08/15/22 | 845,000 | 883,025 |
| Time Warner Cable, Inc. (Z) | 8.250 | 04/01/19 | 350,000 | 439,725 |
| WideOpenWest Finance LLC | 10.250 | 07/15/19 | 100,000 | 111,500 |
| Multiline Retail 0.4% | ||||
| Macy's Retail Holdings, Inc. (Z) | 7.875 | 08/15/36 | 444,000 | 492,682 |
| Tops Holding II Corp. | 8.750 | 06/15/18 | 235,000 | 243,813 |
| Specialty Retail 0.9% | ||||
| AutoNation, Inc. | 5.500 | 02/01/20 | 655,000 | 718,044 |
| Bed Bath & Beyond, Inc. | 3.749 | 08/01/24 | 185,000 | 183,634 |
| Bed Bath & Beyond, Inc. | 5.165 | 08/01/44 | 185,000 | 183,921 |
| Conn's, Inc. (S) | 7.250 | 07/15/22 | 450,000 | 438,750 |
| Hillman Group, Inc. (S) | 6.375 | 07/15/22 | 110,000 | 108,350 |
| Textiles, Apparel & Luxury Goods 0.3% | ||||
| Hot Topic, Inc. (S)(Z) | 9.250 | 06/15/21 | 270,000 | 297,000 |
| Quiksilver, Inc. (S) | 7.875 | 08/01/18 | 310,000 | 285,200 |
| Consumer Staples 1.9% | 3,463,117 | |||
|
| ||||
| Beverages 0.4% | ||||
| Crestview DS Merger Sub II, Inc. | 10.000 | 09/01/21 | 310,000 | 348,363 |
| Pernod-Ricard SA (S)(Z) | 5.750 | 04/07/21 | 325,000 | 373,299 |
| 1 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Consumer Staples (continued) | ||||
|
| ||||
| Food & Staples Retailing 0.5% | ||||
| Safeway, Inc. | 4.750 | 12/01/21 | $125,000 | $127,132 |
| Safeway, Inc. (Z) | 5.000 | 08/15/19 | 840,000 | 865,497 |
| Food Products 0.3% | ||||
| Bunge, Ltd. Finance Corp. (Z) | 8.500 | 06/15/19 | 389,000 | 485,551 |
| Personal Products 0.2% | ||||
| Prestige Brands, Inc. (S) | 5.375 | 12/15/21 | 260,000 | 260,000 |
| Tobacco 0.5% | ||||
| Alliance One International, Inc. | 9.875 | 07/15/21 | 820,000 | 799,500 |
| Vector Group, Ltd. | 7.750 | 02/15/21 | 195,000 | 203,775 |
| Energy 9.0% | 16,715,412 | |||
|
| ||||
| Energy Equipment & Services 1.0% | ||||
| Astoria Depositor Corp. (S) | 8.144 | 05/01/21 | 535,000 | 567,100 |
| Key Energy Services, Inc. (Z) | 6.750 | 03/01/21 | 270,000 | 275,400 |
| Nostrum Oil & Gas Finance BV (S) | 6.375 | 02/14/19 | 345,000 | 360,939 |
| RKI Exploration & Production LLC (S) | 8.500 | 08/01/21 | 270,000 | 288,900 |
| Rowan Companies, Inc. (Z) | 4.875 | 06/01/22 | 330,000 | 354,650 |
| Oil, Gas & Consumable Fuels 8.0% | ||||
| Access Midstream Partners LP | 4.875 | 03/15/24 | 325,000 | 334,750 |
| Afren PLC (S)(Z) | 10.250 | 04/08/19 | 240,000 | 262,800 |
| Baytex Energy Corp. (S) | 5.625 | 06/01/24 | 65,000 | 64,025 |
| BreitBurn Energy Partners LP (Z) | 7.875 | 04/15/22 | 267,000 | 279,015 |
| CNOOC Finance 2013, Ltd. (Z) | 3.000 | 05/09/23 | 420,000 | 391,171 |
| Compressco Partners LP (S) | 7.250 | 08/15/22 | 235,000 | 234,413 |
| Continental Resources, Inc. (Z) | 5.000 | 09/15/22 | 795,000 | 852,638 |
| DCP Midstream LLC (S)(Z) | 9.750 | 03/15/19 | 405,000 | 517,600 |
| DCP Midstream LLC (5.850% to 5-21-23, then 3 month | ||||
| LIBOR + 3.850%) (S)(Z) | 5.850 | 05/21/43 | 370,000 | 358,900 |
| DCP Midstream Operating LP (Z) | 3.875 | 03/15/23 | 225,000 | 226,987 |
| Denbury Resources, Inc. | 5.500 | 05/01/22 | 255,000 | 250,538 |
| Ecopetrol SA | 5.875 | 09/18/23 | 190,000 | 213,693 |
| Energy Transfer Partners LP (Z) | 5.200 | 02/01/22 | 210,000 | 231,066 |
| Energy Transfer Partners LP (Z) | 9.700 | 03/15/19 | 425,000 | 552,015 |
| Energy XXI Gulf Coast, Inc. (S) | 6.875 | 03/15/24 | 145,000 | 144,275 |
| Enterprise Products Operating LLC (7.000% to 6-1-17, then 3 | ||||
| month LIBOR + 2.777%) (Z) | 7.000 | 06/01/67 | 695,000 | 736,700 |
| Enterprise Products Operating LLC (8.375% to 8-1-16, then 3 | ||||
| month LIBOR + 3.708%) | 8.375 | 08/01/66 | 230,000 | 258,463 |
| EP Energy LLC (Z) | 7.750 | 09/01/22 | 195,000 | 212,550 |
| EV Energy Partners LP (Z) | 8.000 | 04/15/19 | 400,000 | 418,000 |
| FTS International, Inc. (S) | 6.250 | 05/01/22 | 175,000 | 178,063 |
| Halcon Resources Corp. | 8.875 | 05/15/21 | 200,000 | 207,500 |
| Jones Energy Holdings LLC (S) | 6.750 | 04/01/22 | 150,000 | 156,000 |
| Kerr-McGee Corp. (Z) | 6.950 | 07/01/24 | 335,000 | 422,896 |
| Kinder Morgan Energy Partners LP | 7.750 | 03/15/32 | 195,000 | 251,403 |
| Kosmos Energy, Ltd. (S) | 7.875 | 08/01/21 | 220,000 | 224,950 |
| Lukoil International Finance BV (S)(Z) | 3.416 | 04/24/18 | 675,000 | 648,000 |
| Memorial Resource Development Corp. (S) | 5.875 | 07/01/22 | 145,000 | 141,013 |
| Midstates Petroleum Company, Inc. | 9.250 | 06/01/21 | 425,000 | 438,813 |
| Newfield Exploration Company (Z) | 5.750 | 01/30/22 | 260,000 | 283,400 |
| Pacific Rubiales Energy Corp. (S) | 5.375 | 01/26/19 | 335,000 | 341,700 |
| 2 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Energy (continued) | ||||
|
| ||||
| Petro-Canada (Z) | 9.250 | 10/15/21 | $1,000,000 | $1,374,839 |
| Petrobras International Finance Company | 5.375 | 01/27/21 | 265,000 | 272,966 |
| Petroleos de Venezuela SA | 5.375 | 04/12/27 | 550,000 | 329,450 |
| Petroleos Mexicanos | 4.875 | 01/24/22 | 275,000 | 294,388 |
| Plains Exploration & Production Company (Z) | 6.750 | 02/01/22 | 458,000 | 517,540 |
| Plains Exploration & Production Company | 6.875 | 02/15/23 | 156,000 | 180,570 |
| Regency Energy Partners LP | 5.000 | 10/01/22 | 95,000 | 93,813 |
| Regency Energy Partners LP | 5.500 | 04/15/23 | 480,000 | 484,800 |
| Regency Energy Partners LP | 5.875 | 03/01/22 | 90,000 | 94,050 |
| Summit Midstream Holdings LLC | 7.500 | 07/01/21 | 150,000 | 163,125 |
| TransCanada Pipelines, Ltd. (6.350% to 5-15-17, then 3 | ||||
| month LIBOR + 2.210%) (Z) | 6.350 | 05/15/67 | 710,000 | 739,820 |
| Tullow Oil PLC (S) | 6.000 | 11/01/20 | 230,000 | 233,450 |
| Tullow Oil PLC (S) | 6.250 | 04/15/22 | 255,000 | 256,275 |
| Financials 27.6% | 51,283,181 | |||
|
| ||||
| Banks 8.8% | ||||
| Banco do Brasil SA (6.250% to 4-15-24, then 10 Year U.S. | ||||
| Treasury + 4.398%) (Q)(S) | 6.250 | 04/15/24 | 470,000 | 366,647 |
| Bank of America Corp. (Z) | 3.300 | 01/11/23 | 260,000 | 253,934 |
| Bank of America Corp. (Z) | 5.000 | 05/13/21 | 670,000 | 740,371 |
| Bank of America Corp. (Z) | 5.700 | 01/24/22 | 370,000 | 425,365 |
| Bank of America Corp. (Z) | 6.875 | 04/25/18 | 1,000,000 | 1,169,222 |
| Barclays Bank PLC (S)(Z) | 10.179 | 06/12/21 | 575,000 | 789,919 |
| BPCE SA (S)(Z) | 5.700 | 10/22/23 | 645,000 | 702,018 |
| Citigroup, Inc. | 3.750 | 06/16/24 | 375,000 | 373,050 |
| Citigroup, Inc. | 3.875 | 10/25/23 | 185,000 | 187,889 |
| Citigroup, Inc. | 6.125 | 08/25/36 | 310,000 | 356,122 |
| Commerzbank AG (S) | 8.125 | 09/19/23 | 350,000 | 411,039 |
| Credit Agricole SA (7.875% to 1-23-24, then 5 year U.S. | ||||
| Swap Rate + 4.898%) (Q)(S) | 7.875 | 01/23/24 | 600,000 | 637,350 |
| Credit Agricole SA (8.125% to 9-19-18, then 5 year U.S. | ||||
| Swap Rate + 6.283%) (S) | 8.125 | 09/19/33 | 250,000 | 283,125 |
| Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR | ||||
| + 3.033%) (Q)(Z) | 5.100 | 06/30/23 | 420,000 | 399,630 |
| HBOS PLC (S)(Z) | 6.750 | 05/21/18 | 825,000 | 943,041 |
| ICICI Bank, Ltd. (S)(Z) | 5.750 | 11/16/20 | 475,000 | 516,018 |
| JPMorgan Chase & Company (Z) | 4.625 | 05/10/21 | 895,000 | 980,033 |
| JPMorgan Chase & Company (5.000% to 7-1-19, then 3 | ||||
| month LIBOR + 3.320%) (Q) | 5.000 | 07/01/19 | 520,000 | 512,503 |
| JPMorgan Chase & Company (6.750% to 02/01/2024, then 3 | ||||
| month LIBOR + 3.780%) (Q) | 6.750 | 02/01/24 | 805,000 | 859,338 |
| Lloyds Banking Group PLC (7.500% to 06/27/2024, then 5 | ||||
| year U.S. Swap Rate + 4.760%) (Q) | 7.500 | 06/27/24 | 385,000 | 404,250 |
| Manufacturers & Traders Trust Company (5.629% to 12-1- | ||||
| 16, then 3 month LIBOR + 6.400%) | 5.629 | 12/01/21 | 150,000 | 155,294 |
| Mizuho Financial Group Cayman 3, Ltd. (S)(Z) | 4.600 | 03/27/24 | 435,000 | 452,046 |
| Oversea-Chinese Banking Corp., Ltd. (4.000% to | ||||
| 10/15/2019, then 5 year U.S. Swap Rate + 2.203%) (S) | 4.000 | 10/15/24 | 200,000 | 202,505 |
| PNC Financial Services Group, Inc. (4.850% to 6-1-23, then | ||||
| 3 month LIBOR + 3.040%) (Q)(Z) | 4.850 | 06/01/23 | 310,000 | 294,500 |
| Rabobank Nederland NV (Z) | 3.875 | 02/08/22 | 905,000 | 957,051 |
| Swedbank AB (S)(Z) | 2.125 | 09/29/17 | 460,000 | 466,793 |
| Synovus Financial Corp. (Z) | 7.875 | 02/15/19 | 200,000 | 226,500 |
| 3 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Financials (continued) | ||||
|
| ||||
| The PNC Financial Services Group, Inc. (P)(Q) | 4.447 | 09/08/14 | $250,000 | $249,563 |
| Wells Fargo & Company (5.900% to 6-15-24, then 3 month | ||||
| LIBOR + 3.110%) (Q)(Z) | 5.900 | 06/15/24 | 655,000 | 684,148 |
| Wells Fargo & Company, Series K (7.980% to 3-15-18, then | ||||
| 3 month LIBOR + 3.770%) (Q)(Z) | 7.980 | 03/15/18 | 750,000 | 850,500 |
| Wells Fargo Bank NA (Z) | 5.850 | 02/01/37 | 390,000 | 478,941 |
| Capital Markets 4.8% | ||||
| Credit Suisse Group AG (7.500% to 12-11-23, then 5 year | ||||
| U.S. Swap Rate + 4.598%) (Q)(S) | 7.500 | 12/11/23 | 295,000 | 323,763 |
| Fifth Street Finance Corp. (Z) | 4.875 | 03/01/19 | 430,000 | 446,084 |
| FS Investment Corp. | 4.000 | 07/15/19 | 360,000 | 360,689 |
| Jefferies Group LLC (Z) | 6.875 | 04/15/21 | 1,005,000 | 1,188,111 |
| Jefferies Group LLC (Z) | 8.500 | 07/15/19 | 235,000 | 293,597 |
| Macquarie Group, Ltd. (S)(Z) | 6.000 | 01/14/20 | 340,000 | 383,043 |
| Morgan Stanley (Z) | 4.100 | 05/22/23 | 580,000 | 581,532 |
| Morgan Stanley (Z) | 5.500 | 01/26/20 | 450,000 | 509,283 |
| Morgan Stanley (Z) | 5.550 | 04/27/17 | 565,000 | 624,021 |
| Morgan Stanley (Z) | 5.750 | 01/25/21 | 515,000 | 594,364 |
| Morgan Stanley (Z) | 7.300 | 05/13/19 | 895,000 | 1,080,737 |
| Morgan Stanley (5.450% to 7-15-19, then 3 month LIBOR + | ||||
| 3.610%) (Q) | 5.450 | 07/15/19 | 345,000 | 344,138 |
| Stifel Financial Corp. | 4.250 | 07/18/24 | 315,000 | 314,404 |
| The Goldman Sachs Group, Inc. (Z) | 5.250 | 07/27/21 | 1,195,000 | 1,332,604 |
| The Goldman Sachs Group, Inc. (Z) | 5.750 | 01/24/22 | 105,000 | 120,459 |
| Walter Investment Management Corp. (S) | 7.875 | 12/15/21 | 455,000 | 464,100 |
| Consumer Finance 1.6% | ||||
| Capital One Financial Corp. (Z) | 3.500 | 06/15/23 | 1,100,000 | 1,092,236 |
| Capital One Financial Corp. (Z) | 4.750 | 07/15/21 | 320,000 | 352,476 |
| Credito Real SAB de CV (S) | 7.500 | 03/13/19 | 325,000 | 349,375 |
| Discover Bank (Z) | 7.000 | 04/15/20 | 150,000 | 179,349 |
| Discover Financial Services (Z) | 5.200 | 04/27/22 | 585,000 | 644,581 |
| Enova International, Inc. (S) | 9.750 | 06/01/21 | 390,000 | 393,900 |
| Diversified Financial Services 3.9% | ||||
| Doric Nimrod Air Alpha 2013-1 Pass Through Trust (S) | 5.250 | 05/30/23 | 325,375 | 345,711 |
| Doric Nimrod Air Alpha 2013-1 Pass Through Trust (S) | 6.125 | 11/30/19 | 278,483 | 294,496 |
| Doric Nimrod Air Finance Alpha, Ltd. 2012-1 Class A Pass | ||||
| Through (S) | 5.125 | 11/30/22 | 181,348 | 193,401 |
| General Electric Capital Corp. (Z) | 4.375 | 09/16/20 | 365,000 | 398,771 |
| General Electric Capital Corp. (Z) | 5.550 | 05/04/20 | 430,000 | 495,520 |
| General Electric Capital Corp. (7.125% until 6-15-22, then 3 | ||||
| month LIBOR + 5.296%) (Q)(Z) | 7.125 | 06/15/22 | 600,000 | 702,000 |
| ING Bank NV (S) | 5.800 | 09/25/23 | 260,000 | 289,964 |
| JPMorgan Chase & Company (5.150% to 5-1-23, then 3 | ||||
| month LIBOR + 3.250%) (Q) | 5.150 | 05/01/23 | 375,000 | 353,906 |
| JPMorgan Chase & Company (7.900% to 4-30-18, then 3 | ||||
| month LIBOR + 3.470%) (Q)(Z) | 7.900 | 04/30/18 | 655,000 | 721,319 |
| Leucadia National Corp. | 5.500 | 10/18/23 | 655,000 | 688,571 |
| Nationstar Mortgage LLC (Z) | 7.875 | 10/01/20 | 310,000 | 316,200 |
| Nationstar Mortgage LLC (Z) | 9.625 | 05/01/19 | 295,000 | 325,975 |
| The Bear Stearns Companies LLC | 7.250 | 02/01/18 | 1,000,000 | 1,178,976 |
| USB Realty Corp. (P)(Q)(S)(Z) | 1.381 | 01/15/17 | 800,000 | 736,000 |
| Voya Financial, Inc. (5.650% to 5-15-23, then 3 month | ||||
| LIBOR + 3.580%) | 5.650 | 05/15/53 | 250,000 | 254,375 |
| 4 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Financials (continued) | ||||
|
| ||||
| Insurance 3.7% | ||||
| American International Group, Inc. | 4.125 | 02/15/24 | $295,000 | $306,832 |
| American International Group, Inc. (8.175% to 5-15-38, then | ||||
| 3 month LIBOR + 4.195%) | 8.175 | 05/15/58 | 45,000 | 62,156 |
| Aquarius + Investments PLC (6.375% to 9-1-19, then 5 Year | ||||
| U.S. Swap Rate + 5.210%) | 6.375 | 09/01/24 | 235,000 | 249,394 |
| Assured Guaranty US Holdings, Inc. | 5.000 | 07/01/24 | 465,000 | 469,005 |
| AXA SA (Z) | 8.600 | 12/15/30 | 175,000 | 235,375 |
| AXA SA (6.379% to 12-14-36, then 3 month LIBOR + | ||||
| 2.256%) (Q)(S) | 6.379 | 12/14/36 | 240,000 | 259,800 |
| CNA Financial Corp. (Z) | 7.250 | 11/15/23 | 540,000 | 669,500 |
| Genworth Holdings, Inc. | 7.625 | 09/24/21 | 290,000 | 359,087 |
| Liberty Mutual Group, Inc. (S)(Z) | 7.800 | 03/15/37 | 705,000 | 835,425 |
| Lincoln National Corp. (6.050% until 4-20-17, then 3 month | ||||
| LIBOR + 2.040%) (Z) | 6.050 | 04/20/67 | 395,000 | 398,950 |
| MetLife, Inc. (Z) | 6.400 | 12/15/36 | 305,000 | 341,844 |
| Nippon Life Insurance Company (5.000% to 10-18-22, then 3 | ||||
| month LIBOR + 4.240%) (S)(Z) | 5.000 | 10/18/42 | 310,000 | 333,250 |
| Pacific LifeCorp. (S)(Z) | 6.000 | 02/10/20 | 500,000 | 571,568 |
| Prudential Financial, Inc. (5.200% to 3-15-24, then 3 month | ||||
| LIBOR + 3.040%) | 5.200 | 03/15/44 | 110,000 | 111,650 |
| Prudential Financial, Inc. (5.875% to 9-15-22, then 3 month | ||||
| LIBOR + 4.175%) (Z) | 5.875 | 09/15/42 | 615,000 | 665,738 |
| Teachers Insurance & Annuity Association of America (S)(Z) | 6.850 | 12/16/39 | 475,000 | 628,519 |
| White Mountains Re Group, Ltd. (7.506% to 6-30-17, then 3 | ||||
| month LIBOR + 3.200%) (Q)(S)(Z) | 7.506 | 06/30/17 | 415,000 | 437,825 |
| Real Estate Investment Trusts 4.6% | ||||
| American Tower Corp. (Z) | 3.400 | 02/15/19 | 225,000 | 233,260 |
| American Tower Corp. (Z) | 4.700 | 03/15/22 | 400,000 | 426,765 |
| ARC Properties Operating Partnership LP (S)(Z) | 4.600 | 02/06/24 | 630,000 | 642,240 |
| Crown Castle Towers LLC (S)(Z) | 4.883 | 08/15/20 | 760,000 | 840,966 |
| Crown Castle Towers LLC (S)(Z) | 6.113 | 01/15/20 | 451,000 | 525,094 |
| DDR Corp. (Z) | 7.500 | 04/01/17 | 880,000 | 1,008,808 |
| Goodman Funding Pty, Ltd. (S)(Z) | 6.375 | 04/15/21 | 645,000 | 747,939 |
| Health Care REIT, Inc. (Z) | 4.950 | 01/15/21 | 190,000 | 209,648 |
| Highwoods Realty LP (Z) | 5.850 | 03/15/17 | 710,000 | 785,528 |
| Host Hotels & Resorts LP (Z) | 5.875 | 06/15/19 | 439,000 | 468,816 |
| iStar Financial, Inc. | 5.000 | 07/01/19 | 135,000 | 132,975 |
| MPT Operating Partnership LP (Z) | 6.375 | 02/15/22 | 320,000 | 340,800 |
| Omega Healthcare Investors, Inc. (S) | 4.950 | 04/01/24 | 350,000 | 359,800 |
| Ventas Realty LP (Z) | 4.000 | 04/30/19 | 330,000 | 353,177 |
| Ventas Realty LP | 4.750 | 06/01/21 | 455,000 | 497,537 |
| Weyerhaeuser Company (Z) | 7.375 | 03/15/32 | 690,000 | 931,162 |
| Real Estate Management & Development 0.2% | ||||
| General Shopping Investments, Ltd. (12.000% to 3-20-17, | ||||
| then 5 Year USGG + 11.052%) (Q)(S) | 12.000 | 03/20/17 | 260,000 | 246,012 |
| Health Care 2.2% | 4,048,656 | |||
|
| ||||
| Health Care Providers & Services 1.0% | ||||
| Medco Health Solutions, Inc. (Z) | 7.125 | 03/15/18 | 275,000 | 323,209 |
| National Mentor Holdings, Inc. (S)(Z) | 12.500 | 02/15/18 | 390,000 | 413,400 |
| Quest Diagnostics, Inc. (Z) | 2.700 | 04/01/19 | 440,000 | 441,878 |
| Quest Diagnostics, Inc. | 4.250 | 04/01/24 | 370,000 | 376,072 |
| 5 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Health Care (continued) | ||||
|
| ||||
| WellCare Health Plans, Inc. | 5.750 | 11/15/20 | $200,000 | $204,000 |
| Pharmaceuticals 1.2% | ||||
| Grifols Worldwide Operations, Ltd. (S) | 5.250 | 04/01/22 | 350,000 | 351,313 |
| Hospira, Inc. (Z) | 6.050 | 03/30/17 | 485,000 | 533,520 |
| Mallinckrodt International Finance SA (S) | 5.750 | 08/01/22 | 310,000 | 311,550 |
| Mylan, Inc. (S)(Z) | 7.875 | 07/15/20 | 545,000 | 599,389 |
| Salix Pharmaceuticals, Ltd. (S) | 6.000 | 01/15/21 | 225,000 | 235,125 |
| Valeant Pharmaceuticals International, Inc. (S) | 7.500 | 07/15/21 | 240,000 | 259,200 |
| Industrials 7.9% | 14,628,376 | |||
|
| ||||
| Aerospace & Defense 1.0% | ||||
| Embraer Overseas, Ltd. (S) | 5.696 | 09/16/23 | 296,000 | 318,940 |
| Textron Financial Corp. (6.000% to 2-15-17, then 3 month | ||||
| LIBOR + 1.735%) (S)(Z) | 6.000 | 02/15/67 | 750,000 | 675,000 |
| Textron, Inc. (Z) | 5.600 | 12/01/17 | 505,000 | 564,369 |
| Textron, Inc. (Z) | 7.250 | 10/01/19 | 270,000 | 324,644 |
| Airlines 3.5% | ||||
| America West Airlines 2000-1 Pass Through Trust (Z) | 8.057 | 07/02/20 | 123,208 | 141,997 |
| American Airlines 2013-2 Class A Pass Through Trust | 4.950 | 01/15/23 | 335,109 | 362,554 |
| British Airways PLC 2013-1 Class A Pass Through Trust | ||||
| (S)(Z) | 4.625 | 06/20/24 | 615,196 | 645,783 |
| British Airways PLC 2013-1 Class B Pass Through Trust (S) | 5.625 | 06/20/20 | 258,862 | 276,983 |
| Continental Airlines 1997-4 Class A Pass Through Trust (Z) | 6.900 | 01/02/18 | 303,668 | 325,867 |
| Continental Airlines 1998-1 Class A Pass Through Trust (Z) | 6.648 | 09/15/17 | 95,023 | 101,114 |
| Continental Airlines 1999-1 Class A Pass Through Trust (Z) | 6.545 | 02/02/19 | 159,471 | 176,518 |
| Continental Airlines 2000-2 Class B Pass Through Trust (Z) | 8.307 | 04/02/18 | 75,581 | 81,628 |
| Continental Airlines 2007-1 Class A Pass Through Trust (Z) | 5.983 | 04/19/22 | 476,153 | 532,101 |
| Continental Airlines 2012-1 Class B Pass Through Trust (Z) | 6.250 | 04/11/20 | 215,675 | 232,929 |
| Delta Air Lines 2002-1 Class G-1 Pass Through Trust (Z) | 6.718 | 01/02/23 | 602,335 | 703,226 |
| Delta Air Lines 2007-1 Class A Pass Through Trust (Z) | 6.821 | 08/10/22 | 608,315 | 718,177 |
| Delta Air Lines 2010-1 Class A Pass Through Trust (Z) | 6.200 | 07/02/18 | 149,488 | 167,800 |
| Delta Air Lines 2011-1 Class A Pass Through Trust (Z) | 5.300 | 04/15/19 | 270,666 | 297,733 |
| Northwest Airlines 2007-1 Class A Pass Through Trust (Z) | 7.027 | 11/01/19 | 358,158 | 409,768 |
| UAL 2009-1 Pass Through Trust (Z) | 10.400 | 11/01/16 | 76,734 | 86,518 |
| UAL 2009-2A Pass Through Trust (Z) | 9.750 | 01/15/17 | 245,533 | 279,294 |
| United Airlines 2014-2 Class A Pass Through Trust | 3.750 | 09/03/26 | 435,000 | 433,913 |
| United Airlines 2014-2 Class B Pass Through Trust | 4.625 | 09/03/22 | 250,000 | 249,688 |
| US Airways 2012-1 Class A Pass Through Trust | 5.900 | 10/01/24 | 162,242 | 181,306 |
| Building Products 0.4% | ||||
| Masco Corp. (Z) | 7.125 | 03/15/20 | 285,000 | 334,163 |
| Owens Corning (Z) | 4.200 | 12/15/22 | 395,000 | 402,942 |
| Commercial Services & Supplies 0.7% | ||||
| Ahern Rentals, Inc. (S) | 9.500 | 06/15/18 | 195,000 | 211,575 |
| Casella Waste Systems, Inc. | 7.750 | 02/15/19 | 365,000 | 375,950 |
| Iron Mountain, Inc. (Z) | 6.000 | 08/15/23 | 440,000 | 458,700 |
| Safway Group Holding LLC (S) | 7.000 | 05/15/18 | 180,000 | 188,550 |
| Construction & Engineering 0.3% | ||||
| Aeropuertos Dominicanos Siglo XXI SA (S)(Z) | 9.750 | 11/13/19 | 300,000 | 289,500 |
| Tutor Perini Corp. (Z) | 7.625 | 11/01/18 | 335,000 | 349,238 |
| Industrial Conglomerates 0.4% | ||||
| Odebrecht Finance, Ltd. (S)(Z) | 7.125 | 06/26/42 | 225,000 | 239,063 |
| Odebrecht Finance, Ltd. (P)(Q)(S) | 7.500 | 09/14/15 | 200,000 | 204,200 |
| 6 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Industrials (continued) | ||||
|
| ||||
| Tenedora Nemak SA de CV (S) | 5.500 | 02/28/23 | $210,000 | $217,350 |
| Machinery 0.1% | ||||
| SPL Logistics Escrow LLC (S)(Z) | 8.875 | 08/01/20 | 215,000 | 238,113 |
| Marine 0.4% | ||||
| Navios Maritime Acquisition Corp. (S) | 8.125 | 11/15/21 | 305,000 | 308,813 |
| Navios South American Logistics, Inc. (S) | 7.250 | 05/01/22 | 375,000 | 382,500 |
| Trading Companies & Distributors 1.0% | ||||
| Air Lease Corp. (Z) | 3.375 | 01/15/19 | 440,000 | 449,350 |
| Air Lease Corp. | 3.875 | 04/01/21 | 215,000 | 216,881 |
| Air Lease Corp. | 4.750 | 03/01/20 | 220,000 | 234,025 |
| Air Lease Corp. | 5.625 | 04/01/17 | 175,000 | 189,875 |
| Aircastle, Ltd. | 7.625 | 04/15/20 | 160,000 | 182,800 |
| International Lease Finance Corp. (S)(Z) | 7.125 | 09/01/18 | 290,000 | 332,050 |
| United Rentals North America, Inc. | 5.750 | 11/15/24 | 265,000 | 270,963 |
| Transportation Infrastructure 0.1% | ||||
| Florida East Coast Holdings Corp. (S) | 6.750 | 05/01/19 | 255,000 | 263,925 |
| Information Technology 0.5% | 1,023,613 | |||
|
| ||||
| Internet Software & Services 0.2% | ||||
| Ancestry.com, Inc. (Z) | 11.000 | 12/15/20 | 305,000 | 350,750 |
| Ancestry.com, Inc., PIK (S) | 9.625 | 10/15/18 | 135,000 | 137,363 |
| Semiconductors & Semiconductor Equipment 0.2% | ||||
| Micron Technology, Inc. (S) | 5.875 | 02/15/22 | 375,000 | 393,750 |
| Software 0.1% | ||||
| Blackboard, Inc. (S) | 7.750 | 11/15/19 | 140,000 | 141,750 |
| Materials 4.1% | 7,620,247 | |||
|
| ||||
| Chemicals 1.0% | ||||
| Braskem Finance, Ltd. (S) | 7.000 | 05/07/20 | 515,000 | 576,800 |
| CF Industries, Inc. (Z) | 7.125 | 05/01/20 | 400,000 | 485,980 |
| Incitec Pivot Finance LLC (S)(Z) | 6.000 | 12/10/19 | 345,000 | 389,734 |
| Methanex Corp. | 5.250 | 03/01/22 | 280,000 | 307,973 |
| Rayonier AM Products, Inc. (S) | 5.500 | 06/01/24 | 95,000 | 93,575 |
| Construction Materials 0.7% | ||||
| American Gilsonite Company (S)(Z) | 11.500 | 09/01/17 | 390,000 | 424,613 |
| Cemex SAB de CV (S) | 6.500 | 12/10/19 | 340,000 | 354,875 |
| Magnesita Finance, Ltd. (Q)(S)(Z) | 8.625 | 04/05/17 | 420,000 | 418,740 |
| Containers & Packaging 0.1% | ||||
| Ardagh Finance Holdings SA, PIK (S) | 8.625 | 06/15/19 | 250,000 | 251,875 |
| Metals & Mining 2.1% | ||||
| Allegheny Technologies, Inc. (Z) | 9.375 | 06/01/19 | 715,000 | 887,225 |
| AngloGold Ashanti Holdings PLC (Z) | 8.500 | 07/30/20 | 405,000 | 458,258 |
| ArcelorMittal (Z) | 10.350 | 06/01/19 | 370,000 | 460,650 |
| AuRico Gold, Inc. (S) | 7.750 | 04/01/20 | 125,000 | 126,563 |
| Gerdau Trade, Inc. (S)(Z) | 4.750 | 04/15/23 | 225,000 | 218,745 |
| Glencore Finance Canada, Ltd. (S) | 4.250 | 10/25/22 | 220,000 | 223,605 |
| JMC Steel Group (S) | 8.250 | 03/15/18 | 185,000 | 183,150 |
| MMC Norilsk Nickel OJSC (S) | 5.550 | 10/28/20 | 235,000 | 234,413 |
| Rain CII Carbon LLC (S)(Z) | 8.000 | 12/01/18 | 340,000 | 351,900 |
| SunCoke Energy, Inc. | 7.625 | 08/01/19 | 94,000 | 99,640 |
| 7 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Materials (continued) | ||||
|
| ||||
| Thompson Creek Metals Company, Inc. (Z) | 7.375 | 06/01/18 | $395,000 | $386,113 |
| Vedanta Resources PLC (S)(Z) | 7.125 | 05/31/23 | 300,000 | 316,875 |
| Trading Companies & Distributors 0.2% | ||||
| Glencore Funding LLC (S)(Z) | 4.125 | 05/30/23 | 370,000 | 368,945 |
| Telecommunication Services 3.5% | 6,423,552 | |||
|
| ||||
| Diversified Telecommunication Services 2.2% | ||||
| BellSouth Telecommunications, Inc. (Z) | 6.300 | 12/15/15 | 207,500 | 211,513 |
| CenturyLink, Inc. (Z) | 5.800 | 03/15/22 | 480,000 | 492,000 |
| CenturyLink, Inc. (Z) | 6.450 | 06/15/21 | 305,000 | 327,875 |
| GTP Acquisition Partners I LLC (S) | 4.704 | 05/15/18 | 485,000 | 491,813 |
| Telecom Italia Capital SA (Z) | 7.200 | 07/18/36 | 365,000 | 390,550 |
| Telefonica Emisiones SAU (Z) | 6.421 | 06/20/16 | 600,000 | 657,002 |
| Verizon Communications, Inc. | 3.450 | 03/15/21 | 420,000 | 428,558 |
| Verizon Communications, Inc. | 6.550 | 09/15/43 | 470,000 | 589,286 |
| Wind Acquisition Finance SA (S) | 7.375 | 04/23/21 | 355,000 | 370,088 |
| Wireless Telecommunication Services 1.3% | ||||
| Comcel Trust (S) | 6.875 | 02/06/24 | 330,000 | 354,750 |
| Digicel Group, Ltd. (S) | 8.250 | 09/30/20 | 385,000 | 410,988 |
| Millicom International Cellular SA (S) | 4.750 | 05/22/20 | 210,000 | 207,375 |
| Millicom International Cellular SA (S) | 6.625 | 10/15/21 | 300,000 | 318,750 |
| SBA Tower Trust (S)(Z) | 2.933 | 12/15/17 | 395,000 | 401,199 |
| SBA Tower Trust (S) | 3.598 | 04/15/18 | 370,000 | 370,805 |
| SoftBank Corp. (S) | 4.500 | 04/15/20 | 400,000 | 401,000 |
| Utilities 4.0% | 7,538,748 | |||
|
| ||||
| Electric Utilities 2.9% | ||||
| Beaver Valley II Funding Corp. | 9.000 | 06/01/17 | 49,000 | 51,484 |
| BVPS II Funding Corp. | 8.890 | 06/01/17 | 250,000 | 259,660 |
| DPL, Inc. (Z) | 7.250 | 10/15/21 | 570,000 | 601,350 |
| Electricite de France SA (5.250% to 1-29-23, then 10 Year | ||||
| Swap Rate + 3.709%) (Q)(S)(Z) | 5.250 | 01/29/23 | 485,000 | 492,823 |
| Exelon Corp. (Z) | 4.900 | 06/15/15 | 985,000 | 1,020,800 |
| FPL Energy National Wind LLC (S)(Z) | 5.608 | 03/10/24 | 76,696 | 74,994 |
| Israel Electric Corp., Ltd. (S)(Z) | 5.625 | 06/21/18 | 420,000 | 447,720 |
| NextEra Energy Capital Holdings, Inc. (6.650% to 6-15-17, | ||||
| then 3 month LIBOR + 2.125%) | 6.650 | 06/15/67 | 180,000 | 183,825 |
| NRG Yield Operating LLC (S) | 5.375 | 08/15/24 | 260,000 | 260,000 |
| Oncor Electric Delivery Company LLC (Z) | 5.000 | 09/30/17 | 820,000 | 910,208 |
| PNPP II Funding Corp. | 9.120 | 05/30/16 | 92,000 | 95,290 |
| PPL Capital Funding, Inc. (6.700% to 3-30-17, then 3 month | ||||
| LIBOR + 2.665%) (Z) | 6.700 | 03/30/67 | 525,000 | 536,813 |
| Southern California Edison Company (6.250% to 2-1-22, | ||||
| then 3 month LIBOR + 4.199%) (Q)(Z) | 6.250 | 02/01/22 | 320,000 | 347,200 |
| W3A Funding Corp. (Z) | 8.090 | 01/02/17 | 252,509 | 251,939 |
| Independent Power and Renewable Electricity Producers 0.1% | ||||
| NRG Energy, Inc. | 6.625 | 03/15/23 | 125,000 | 128,750 |
| Multi-Utilities 1.0% | ||||
| Berkshire Hathaway Energy Company (Z) | 8.480 | 09/15/28 | 550,000 | 797,680 |
| Integrys Energy Group, Inc. (6.110% to 12-1-16, then 3 | ||||
| month LIBOR + 2.120%) (Z) | 6.110 | 12/01/66 | 650,000 | 655,850 |
| 8 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Utilities (continued) | ||||
|
| ||||
| Wisconsin Energy Corp. (6.250% to 5-15-17, then 3 month | ||||
| LIBOR + 2.113%) (Z) | 6.250 | 05/15/67 | $410,000 | $422,362 |
| Term Loans (M) 0.6% (0.4% of Total Investments) | $1,215,025 | |||
|
| ||||
| (Cost $1,211,674) | ||||
| Consumer Discretionary 0.1% | 163,377 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.1% | ||||
| CCM Merger, Inc. | 6.000 | 03/01/17 | 163,581 | 163,377 |
| Consumer Staples 0.1% | 359,413 | |||
|
| ||||
| Household Products 0.1% | ||||
| The Sun Products Corp. | 5.500 | 03/23/20 | 372,449 | 359,413 |
| Energy 0.1% | 159,100 | |||
|
| ||||
| Energy Equipment & Services 0.1% | ||||
| Paragon Offshore Finance Company (T) | TBD | 06/19/21 | 160,000 | 159,100 |
| Health Care 0.1% | 231,326 | |||
|
| ||||
| Health Care Providers & Services 0.1% | ||||
| CRC Health Corp. | 5.250 | 03/29/21 | 74,813 | 75,163 |
| CRC Health Corp. | 9.000 | 09/28/21 | 155,000 | 156,163 |
| Industrials 0.1% | 148,119 | |||
|
| ||||
| Aerospace & Defense 0.1% | ||||
| WP CPP Holdings LLC | 4.750 | 12/27/19 | 147,750 | 148,119 |
| Utilities 0.1% | 153,690 | |||
|
| ||||
| Electric Utilities 0.1% | ||||
| La Frontera Generation LLC | 4.500 | 09/30/20 | 153,307 | 153,690 |
| Capital Preferred Securities (a) 2.3% (1.5% of Total Investments) | $4,210,739 | |||
|
| ||||
| (Cost $3,952,100) | ||||
| Financials 2.3% | 4,210,739 | |||
|
| ||||
| Banks 0.6% | ||||
| PNC Financial Services Group, Inc. (6.750% to 8-1-21, then | ||||
| 3 month LIBOR + 3.678%) (Q)(Z) | 6.750 | 08/01/21 | 520,000 | 579,800 |
| Sovereign Capital Trust VI (Z) | 7.908 | 06/13/36 | 489,000 | 522,511 |
| Capital Markets 0.4% | ||||
| State Street Capital Trust IV (Z) | 1.231 | 06/15/37 | 935,000 | 808,775 |
| Diversified Financial Services 0.3% | ||||
| BAC Capital Trust XIV, Series G (P)(Q) | 4.000 | 08/25/14 | 654,000 | 529,740 |
| Insurance 1.0% | ||||
| MetLife Capital Trust IV (7.875% to 12-15-32, then 3 month | ||||
| LIBOR + 3.960%) (S) | 7.875 | 12/15/37 | 110,000 | 139,150 |
| MetLife Capital Trust X (S)(Z) | 9.250 | 04/08/38 | 315,000 | 452,025 |
| ZFS Finance USA Trust II (6.450% to 6-15-16 then 3 month | ||||
| LIBOR + 2.000%) (S)(Z) | 6.450 | 12/15/65 | 870,000 | 937,425 |
| ZFS Finance USA Trust V (6.500% to 5-9-17, then 3 month | ||||
| LIBOR + 2.285%) (S)(Z) | 6.500 | 05/09/37 | 225,000 | 241,313 |
| 9 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| U.S. Government & Agency Obligations 41.0% (27.7% of Total Investments) | $76,249,546 | |||
|
| ||||
| (Cost $76,558,718) | ||||
| U.S. Government 10.5% | 19,553,794 | |||
|
| ||||
| U.S. Treasury Bond | ||||
| Bond | 3.125 | 02/15/42 | $1,405,000 | 1,362,631 |
| Bond (Z) | 3.625 | 02/15/44 | 3,670,000 | 3,884,467 |
| U.S. Treasury Note | ||||
| Note (Z) | 0.875 | 07/15/17 | 5,165,000 | 5,146,437 |
| Note (Z) | 1.875 | 06/30/20 | 1,015,000 | 1,007,546 |
| Note (Z) | 2.000 | 09/30/20 | 8,000,000 | 7,963,752 |
| Note (Z) | 2.500 | 05/15/24 | 190,000 | 188,961 |
| U.S. Government Agency 30.5% | 56,695,752 | |||
|
| ||||
| Federal Home Loan Banks | ||||
| Bond | 2.900 | 09/05/25 | 200,000 | 191,915 |
| Bond | 3.170 | 10/04/27 | 200,000 | 190,199 |
| Bond | 3.250 | 06/21/27 | 269,697 | 261,013 |
| Federal Home Loan Mortgage Corp. | ||||
| 30 Yr Pass Thru (P) | 2.558 | 06/01/44 | 550,561 | 564,366 |
| 30 Yr Pass Thru (P) | 2.692 | 05/01/44 | 542,151 | 557,909 |
| 30 Yr Pass Thru (Z) | 3.000 | 03/01/43 | 1,004,455 | 989,355 |
| 30 Yr Pass Thru | 4.500 | 09/01/41 | 2,761,341 | 2,989,633 |
| 30 Yr Pass Thru (Z) | 5.000 | 03/01/41 | 4,576,538 | 5,067,086 |
| 30 Yr Pass Thru (Z) | 6.500 | 04/01/39 | 368,675 | 411,066 |
| Federal National Mortgage Association | ||||
| 15 Yr Pass Thru (Z) | 3.000 | 07/01/27 | 1,639,299 | 1,693,665 |
| 15 Yr Pass Thru (Z) | 3.000 | 10/29/27 | 705,000 | 657,751 |
| 30 Yr Pass Thru | 2.530 | 06/01/44 | 1,000,693 | 1,026,229 |
| 30 Yr Pass Thru | 2.553 | 04/01/44 | 954,800 | 980,075 |
| 30 Yr Pass Thru | 3.400 | 09/27/32 | 745,000 | 693,918 |
| 30 Yr Pass Thru (Z) | 6.500 | 01/01/39 | 1,053,514 | 1,185,554 |
| 30 Yr Pass Thru (Z) | 3.000 | 12/01/42 | 4,332,978 | 4,270,015 |
| 30 Yr Pass Thru | 3.000 | 03/01/43 | 283,511 | 279,569 |
| 30 Yr Pass Thru | 3.000 | 07/01/43 | 1,055,915 | 1,035,622 |
| 30 Yr Pass Thru (Z) | 3.500 | 12/01/42 | 5,832,163 | 5,947,211 |
| 30 Yr Pass Thru (Z) | 3.500 | 01/01/43 | 4,363,196 | 4,447,903 |
| 30 Yr Pass Thru (Z) | 4.000 | 10/01/40 | 508,952 | 537,263 |
| 30 Yr Pass Thru (Z) | 4.000 | 09/01/41 | 5,697,102 | 6,001,069 |
| 30 Yr Pass Thru (Z) | 4.000 | 10/01/41 | 2,364,121 | 2,493,040 |
| 30 Yr Pass Thru (Z) | 4.500 | 10/01/40 | 2,225,720 | 2,416,906 |
| 30 Yr Pass Thru | 4.500 | 07/01/41 | 5,617,096 | 6,088,186 |
| 30 Yr Pass Thru | 5.000 | 02/01/41 | 2,109,937 | 2,346,481 |
| 30 Yr Pass Thru (Z) | 5.000 | 04/01/41 | 621,603 | 692,262 |
| 30 Yr Pass Thru (Z) | 5.500 | 02/01/36 | 695,358 | 772,339 |
| 30 Yr Pass Thru (Z) | 5.500 | 10/01/39 | 1,245,598 | 1,381,158 |
| 30 Yr Pass Thru (Z) | 5.500 | 08/01/40 | 232,712 | 258,184 |
| 30 Yr Pass Thru (Z) | 6.500 | 07/01/36 | 239,024 | 268,810 |
| Foreign Government Obligations 0.2% (0.1% of Total Investments) | $286,997 | |||
|
| ||||
| (Cost $263,338) | ||||
| Argentina 0.2% | 286,997 | |||
|
| ||||
| Republic of Argentina (H) | 8.280 | 12/31/33 | 322,469 | 286,997 |
| 10 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Collateralized Mortgage Obligations 17.3% (11.7% of Total Investments) | $32,206,418 | |||
|
| ||||
| (Cost $30,707,363) | ||||
| Commercial & Residential 14.1% | 26,163,663 | |||
|
| ||||
| American Home Mortgage Assets Trust | ||||
| Series 2006-6, Class XP IO | 2.456 | 12/25/46 | $4,967,973 | 363,158 |
| American Home Mortgage Investment Trust | ||||
| Series 2005-1, Class 1A1 (P) | 0.375 | 06/25/45 | 597,685 | 566,386 |
| Americold 2010 LLC Trust | ||||
| Series 2010-ARTA, Class D (S) | 7.443 | 01/14/29 | 605,000 | 690,223 |
| BAMLL Commercial Mortgage Securities Trust | ||||
| Series 2014-ICTS, Class D (P) (S) | 2.100 | 06/15/28 | 100,000 | 100,185 |
| Bear Stearns Adjustable Rate Mortgage Trust | ||||
| Series 2005-1, Class B2 (P) | 3.140 | 03/25/35 | 633,464 | 41,722 |
| Series 2005-2, Class A1 (P) | 2.580 | 03/25/35 | 423,801 | 429,915 |
| Bear Stearns Alt-A Trust | ||||
| Series 2005-5, Class 1A4 (P) | 0.715 | 07/25/35 | 442,905 | 415,796 |
| Series 2005-7, Class 11A1 (P) | 0.695 | 08/25/35 | 681,618 | 641,398 |
| Bear Stearns Asset Backed Securities Trust | ||||
| Series 2004-AC5, Class A1 | 5.750 | 10/25/34 | 341,784 | 350,735 |
| Commercial Mortgage Pass Through Certificates | ||||
| Series 2010-C1, Class D (P) (S) | 5.909 | 07/10/46 | 475,000 | 521,094 |
| Series 2012-LC4, Class B (P) | 4.934 | 12/10/44 | 360,000 | 391,916 |
| Series 2012-LC4, Class C (P) | 5.647 | 12/10/44 | 645,000 | 720,963 |
| Series 2013-300P, Class D (P) (S) | 4.394 | 08/10/30 | 620,000 | 624,951 |
| Series 2013-CR11, Class B (P) | 5.164 | 10/10/46 | 560,000 | 617,729 |
| Series 2013-CR13, Class C (P) | 4.757 | 12/10/23 | 435,000 | 456,848 |
| Series 2013-LC13, Class B (P) (S) | 5.009 | 08/10/46 | 525,000 | 572,158 |
| Series 2014-CR16, Class C (P) | 4.906 | 04/10/47 | 552,000 | 582,557 |
| Series 2014-TWC, Class D (P) (S) | 2.402 | 02/13/32 | 445,000 | 448,916 |
| Credit Suisse Mortgage Trust | ||||
| Series 2014-ICE, Class D (P) (S) | 2.400 | 04/15/27 | 450,000 | 451,259 |
| Deutsche Mortgage Securities, Inc. Mortgage Loan Trust | ||||
| Series 2004-4, Class 2AR1 (P) | 0.695 | 06/25/34 | 506,445 | 476,092 |
| Extended Stay America Trust | ||||
| Series 2013-ESFL, Class DFL (P) (S) | 3.296 | 12/05/31 | 505,000 | 507,046 |
| GSR Mortgage Loan Trust | ||||
| Series 2006-4F, Class 6A1 | 6.500 | 05/25/36 | 1,981,225 | 1,671,570 |
| HarborView Mortgage Loan Trust | ||||
| Series 2005-11, Class X IO | 2.305 | 08/19/45 | 2,193,943 | 114,116 |
| Series 2005-2, Class IX IO | 2.155 | 05/19/35 | 7,767,263 | 463,396 |
| Series 2005-9, Class 2A1C (P) | 0.606 | 06/20/35 | 670,060 | 637,656 |
| Series 2005-8, Class 1X IO | 2.075 | 09/19/35 | 2,952,195 | 168,792 |
| Series 2007-3, Class ES IO (S) | 0.350 | 05/19/47 | 8,720,044 | 92,650 |
| Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 9,371,132 | 93,711 |
| Series 2007-6, Class ES IO (S) | 0.342 | 08/19/37 | 7,320,201 | 77,777 |
| Hilton USA Trust | ||||
| Series 2013-HLT, Class DFX (S) | 4.407 | 11/05/30 | 381,000 | 391,516 |
| Series 2014-ORL, Class D (P) (S) | 2.300 | 07/15/29 | 585,000 | 585,345 |
| IndyMac Index Mortgage Loan Trust | ||||
| Series 2005-AR12, Class AX2 IO | 2.213 | 07/25/35 | 7,136,596 | 514,584 |
| Series 2005-AR18, Class 1X IO | 2.072 | 10/25/36 | 8,085,817 | 617,210 |
| Series 2005-AR18, Class 2X IO | 1.719 | 10/25/36 | 7,349,850 | 248,713 |
| JPMorgan Chase Commercial Mortgage Securities Trust | ||||
| Series 2007-LDPX, Class AM (P) | 5.464 | 01/15/49 | 945,000 | 1,000,152 |
| 11 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Commercial & Residential (continued) | ||||
|
| ||||
| Series 2012-PHH, Class D (P) (S) | 3.420 | 10/15/25 | $260,000 | $260,616 |
| Series 2013-JWRZ, Class D (P) (S) | 3.142 | 04/15/30 | 440,000 | 441,528 |
| Series 2014-FBLU, Class D (P) (S) | 2.752 | 12/15/28 | 725,000 | 726,625 |
| Series 2014-INN, Class F (P) (S) | 4.152 | 06/15/29 | 490,000 | 490,041 |
| Merrill Lynch Mortgage Investors Trust | ||||
| Series 2004-1, Class 2A1 (P) | 2.147 | 12/25/34 | 444,326 | 435,673 |
| Morgan Stanley Bank of America Merrill Lynch Trust | ||||
| Series 2013-C7, Class C (P) | 4.187 | 02/15/46 | 293,000 | 296,316 |
| MortgageIT Trust | ||||
| Series 2005-2, Class 1A2 (P) | 0.485 | 05/25/35 | 456,275 | 425,735 |
| Motel 6 Trust | ||||
| Series 2012-MTL6, Class D (S) | 3.781 | 10/05/25 | 975,000 | 983,765 |
| Springleaf Mortgage Loan Trust | ||||
| Series 2012-3A, Class M1 (P) (S) | 2.660 | 12/25/59 | 265,000 | 264,997 |
| UBS Commercial Mortgage Trust | ||||
| Series 2012-C1, Class B | 4.822 | 05/10/45 | 405,000 | 436,445 |
| Series 2012-C1, Class C (P) (S) | 5.535 | 05/10/45 | 270,000 | 298,928 |
| UBS-Barclays Commercial Mortgage Trust | ||||
| Series 2012-C2, Class XA IO (S) | 1.775 | 05/10/63 | 4,870,108 | 411,436 |
| VNDO Mortgage Trust | ||||
| Series 2013-PENN, Class D (P) (S) | 3.947 | 12/13/29 | 612,000 | 619,839 |
| Wachovia Bank Commercial Mortgage Trust | ||||
| Series 2007-C31, Class AM (P) | 5.591 | 04/15/47 | 285,000 | 311,005 |
| WaMu Mortgage Pass Through Certificates | ||||
| Series 2005-AR8, Class 2AB2 (P) | 0.575 | 07/25/45 | 638,736 | 606,009 |
| Wells Fargo Commercial Mortgage Trust | ||||
| Series 2013-120B, Class C (P) (S) | 2.710 | 03/18/28 | 935,000 | 902,294 |
| Series 2013-BTC, Class E (P) (S) | 3.550 | 04/16/35 | 620,000 | 557,530 |
| WF-RBS Commercial Mortgage Trust | ||||
| Series 2012-C9, Class XA IO (S) | 2.232 | 11/15/45 | 5,059,367 | 595,665 |
| Series 2013-C15, Class B (P) | 4.485 | 08/15/46 | 155,000 | 162,492 |
| Series 2013-C16, Class B (P) | 4.984 | 09/15/46 | 265,000 | 288,489 |
| U.S. Government Agency 3.2% | 6,042,755 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| Series 290, Class IO | 3.500 | 11/15/32 | 3,320,878 | 640,891 |
| Series 3747, Class HI IO | 4.500 | 07/15/37 | 3,482,911 | 356,768 |
| Series 3794, Class PI IO | 4.500 | 02/15/38 | 591,315 | 64,736 |
| Series 3830, Class NI IO | 4.500 | 01/15/36 | 2,791,790 | 299,517 |
| Series 4077, Class IK IO | 5.000 | 07/15/42 | 827,532 | 194,196 |
| Series 4136, Class IH IO | 3.500 | 09/15/27 | 2,369,517 | 294,144 |
| Series K017, Class X1 IO | 1.439 | 12/25/21 | 2,959,553 | 246,276 |
| Series K018, Class X1 IO | 1.449 | 01/25/22 | 3,689,591 | 309,944 |
| Series K021, Class X1 IO | 1.509 | 06/25/22 | 807,864 | 76,008 |
| Series K022, Class X1 IO | 1.302 | 07/25/22 | 6,015,160 | 493,165 |
| Series K707, Class X1 IO | 1.552 | 12/25/18 | 2,430,267 | 143,354 |
| Series K709, Class X1 IO | 1.540 | 03/25/19 | 3,342,875 | 204,674 |
| Series K710, Class X1 IO | 1.780 | 05/25/19 | 2,547,937 | 184,073 |
| Federal National Mortgage Association | ||||
| Series 2010-68, Class CI IO | 5.000 | 11/25/38 | 756,340 | 124,814 |
| Series 2012-118, Class IB IO | 3.500 | 11/25/42 | 1,380,193 | 310,488 |
| Series 2012-137, Class QI IO | 3.000 | 12/25/27 | 2,651,449 | 354,706 |
| Series 2012-137, Class WI IO | 3.500 | 12/25/32 | 1,973,019 | 383,467 |
| Series 402, Class 3 IO | 4.000 | 11/25/39 | 445,814 | 94,512 |
| Series 402, Class 4 IO | 4.000 | 10/25/39 | 692,841 | 139,868 |
| 12 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| U.S. Government Agency (continued) | ||||
|
| ||||
| Series 402, Class 7 IO | 4.500 | 11/25/39 | $641,689 | $124,580 |
| Series 402, Class 8 IO | 4.500 | 11/25/39 | 581,462 | 117,079 |
| Series 407, Class 15 IO | 5.000 | 01/25/40 | 686,392 | 139,700 |
| Series 407, Class 21 IO | 5.000 | 01/25/39 | 337,981 | 57,318 |
| Series 407, Class 7 IO | 5.000 | 03/25/41 | 281,502 | 58,428 |
| Series 407, Class 8 IO | 5.000 | 03/25/41 | 289,178 | 61,996 |
| Series 407, Class C6 IO | 5.500 | 01/25/40 | 1,084,046 | 239,051 |
| Government National Mortgage Association | ||||
| Series 2012-114, Class IO | 1.038 | 01/16/53 | 1,991,806 | 174,273 |
| Series 2013-42, Class IO | 3.500 | 03/20/43 | 997,103 | 154,729 |
| Asset Backed Securities 7.4% (5.0% of Total Investments) | $13,767,706 | |||
|
| ||||
| (Cost $13,265,164) | ||||
| Asset Backed Securities 7.4% | 13,767,706 | |||
|
| ||||
| ACE Securities Corp. | ||||
| Series 2005-HE3, Class M2 (P) | 0.830 | 05/25/35 | 315,000 | 300,706 |
| Aegis Asset Backed Securities Trust | ||||
| Series 2005-4, Class M1 (P) | 0.605 | 10/25/35 | 750,000 | 651,965 |
| Ally Master Owner Trust | ||||
| Series 2012-4, Class A | 1.720 | 07/15/19 | 230,000 | 230,941 |
| Ameriquest Mortgage Securities, Inc. | ||||
| Series 2005-R3, Class M2 (P) | 0.625 | 05/25/35 | 480,000 | 441,116 |
| Argent Securities, Inc. | ||||
| Series 2003-W10, Class M1 (P) | 1.232 | 01/25/34 | 257,870 | 248,258 |
| Series 2004-W6, Class M1 (P) | 0.980 | 05/25/34 | 258,413 | 251,420 |
| Bravo Mortgage Asset Trust | ||||
| Series 2006-1A, Class A2 (P) (S) | 0.395 | 07/25/36 | 653,140 | 606,106 |
| Chase Issuance Trust | ||||
| Series 2014-A6, Class A | 1.260 | 07/15/19 | 541,000 | 539,171 |
| Citibank Credit Card Issuance Trust | ||||
| Series 2007-A8, Class A8 | 5.650 | 09/20/19 | 375,000 | 422,641 |
| Citicorp Residential Mortgage Securities, Inc. | ||||
| Series 2007-2, Class A6 | 5.729 | 06/25/37 | 261,404 | 270,352 |
| CKE Restaurant Holdings, Inc. | ||||
| Series 2013-1A, Class A2 (S) | 4.474 | 03/20/43 | 1,094,094 | 1,115,232 |
| ContiMortgage Home Equity Loan Trust | ||||
| Series 1995-2, Class A5 | 8.100 | 08/15/25 | 27,800 | 26,997 |
| Countrywide Asset-Backed Certificates | ||||
| Series 2004-10, Class AF5B | 5.417 | 02/25/35 | 509,379 | 520,862 |
| Credit Suisse Mortgage Trust | ||||
| Series 2006-CF2, Class M1 (P) (S) | 0.625 | 05/25/36 | 735,000 | 708,586 |
| Dominos Pizza Master Issuer LLC | ||||
| Series 2012-1A, Class A2 (S) | 5.216 | 01/25/42 | 703,430 | 749,719 |
| Encore Credit Receivables Trust | ||||
| Series 2005-2, Class M2 (P) | 0.845 | 11/25/35 | 600,000 | 585,547 |
| Ford Credit Floorplan Master Owner Trust | ||||
| Series 2012-5, Class A | 1.490 | 09/15/19 | 445,000 | 443,173 |
| GSAA Home Equity Trust | ||||
| Series 2005-11, Class 3A1 (P) | 0.425 | 10/25/35 | 645,966 | 606,587 |
| GSAA Trust | ||||
| Series 2005-10, Class M3 (P) | 0.705 | 06/25/35 | 675,000 | 641,240 |
| Home Equity Mortgage Loan Asset-Backed Trust | ||||
| Series 2005-C, Class AII3 (P) | 0.525 | 10/25/35 | 455,000 | 434,662 |
| 13 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Asset Backed Securities (continued) | ||||
|
| ||||
| Merrill Lynch Mortgage Investors, Inc. | ||||
| Series 2005-WMC1, Class M1 (P) | 0.905 | 09/25/35 | $256,559 | $241,032 |
| Sonic Capital LLC | ||||
| Series 2011-1A, Class A2 (S) | 5.438 | 05/20/41 | 367,965 | 389,887 |
| Soundview Home Loan Trust | ||||
| Series 2006-OPT2, Class A3 (P) | 0.335 | 05/25/36 | 217,619 | 201,991 |
| Specialty Underwriting & Residential Finance Trust | ||||
| Series 2006-BC1, Class A2D (P) | 0.455 | 12/25/36 | 1,090,000 | 1,049,517 |
| Westgate Resorts LLC | ||||
| Series 2012-2A, Class A (S) | 3.000 | 01/20/25 | 306,491 | 309,406 |
| Series 2012-2A, Class B (S) | 4.500 | 01/20/25 | 875,689 | 890,900 |
| Series 2012-3A, Class A (S) | 2.500 | 03/20/25 | 235,348 | 236,842 |
| Series 2012-3A, Class B (S) | 4.500 | 03/20/25 | 483,214 | 491,916 |
| Series 2013-1A, Class B (S) | 3.750 | 08/20/25 | 159,435 | 160,934 |
| Shares | Value | |||
| Common Stocks 6.2% (4.2% of Total Investments) | $11,446,833 | |||
|
| ||||
| (Cost $9,767,847) | ||||
| Consumer Discretionary 0.4% | 661,920 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.4% | ||||
| McDonald's Corp. (Z) | 7,000 | 661,920 | ||
| Consumer Staples 0.9% | 1,623,875 | |||
|
| ||||
| Food Products 0.4% | ||||
| Kraft Foods Group, Inc. (Z) | 15,000 | 803,775 | ||
| Tobacco 0.5% | ||||
| Philip Morris International, Inc. (Z) | 10,000 | 820,100 | ||
| Energy 0.4% | 654,640 | |||
|
| ||||
| Oil, Gas & Consumable Fuels 0.4% | ||||
| Royal Dutch Shell PLC, ADR (Z) | 8,000 | 654,640 | ||
| Financials 0.7% | 1,392,435 | |||
|
| ||||
| Banks 0.3% | ||||
| U.S. Bancorp (Z) | 14,500 | 609,435 | ||
| Real Estate Investment Trusts 0.4% | ||||
| Weyerhaeuser Company (Z) | 25,000 | 783,000 | ||
| Health Care 1.2% | 2,247,123 | |||
|
| ||||
| Pharmaceuticals 1.2% | ||||
| Johnson & Johnson (Z) | 8,258 | 826,543 | ||
| Pfizer, Inc. (Z) | 24,000 | 688,800 | ||
| Sanofi, ADR (Z) | 14,000 | 731,780 | ||
| Industrials 0.8% | 1,528,160 | |||
|
| ||||
| Commercial Services & Supplies 0.4% | ||||
| Republic Services, Inc. (Z) | 20,000 | 758,600 | ||
| Machinery 0.4% | ||||
| Stanley Black & Decker, Inc. (Z) | 8,800 | 769,560 | ||
| 14 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Shares | Value | |
| Information Technology 0.9% | $1,642,940 | |
|
| ||
| Semiconductors & Semiconductor Equipment 0.5% | ||
| Intel Corp. (Z) | 26,000 | 881,140 |
| Technology Hardware, Storage & Peripherals 0.4% | ||
| Seagate Technology PLC (Z) | 13,000 | 761,800 |
| Materials 0.5% | 964,650 | |
|
| ||
| Chemicals 0.5% | ||
| E.I. du Pont de Nemours & Company (Z) | 15,000 | 964,650 |
| Telecommunication Services 0.4% | 731,090 | |
|
| ||
| Diversified Telecommunication Services 0.4% | ||
| Verizon Communications, Inc. (Z) | 14,500 | 731,090 |
| Shares | Value | |
| Preferred Securities (b) 2.0% (1.4% of Total Investments) | $3,721,803 | |
|
| ||
| (Cost $3,636,896) | ||
| Consumer Staples 0.3% | 562,500 | |
|
| ||
| Food & Staples Retailing 0.3% | ||
| Ocean Spray Cranberries, Inc., Series A, 6.250% (S) | 6,250 | 562,500 |
| Financials 1.0% | 1,812,487 | |
|
| ||
| Banks 0.3% | ||
| FNB Corp. (7.250% to 2-15-24, then 3 month LIBOR + 4.600%) | 9,000 | 245,970 |
| Wells Fargo & Company, Series L, 7.500% | 192 | 232,320 |
| Capital Markets 0.2% | ||
| The Goldman Sachs Group, Inc., 5.500% (Z) | 12,425 | 297,703 |
| Consumer Finance 0.5% | ||
| Ally Financial, Inc., 7.000% (S) | 526 | 523,370 |
| GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + | ||
| 5.785%) (Z) | 15,500 | 421,290 |
| Real Estate Investment Trusts 0.0% | ||
| Weyerhaeuser Company, 6.375% | 1,700 | 91,834 |
| Industrials 0.2% | 362,208 | |
|
| ||
| Aerospace & Defense 0.2% | ||
| United Technologies Corp., 7.500% (Z) | 6,106 | 362,208 |
| Telecommunication Services 0.1% | 290,575 | |
|
| ||
| Diversified Telecommunication Services 0.1% | ||
| Intelsat SA, 5.750% | 5,900 | 290,575 |
| Utilities 0.4% | 694,033 | |
|
| ||
| Electric Utilities 0.1% | ||
| Exelon Corp., 6.500% | 4,341 | 213,143 |
| Multi-Utilities 0.3% | ||
| Dominion Resources, Inc., 6.375% | 9,485 | 480,890 |
| 15 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
|
| ||||
| Escrow Certificates 0.0% (0.0% of Total Investments) | $123 | |||
| (Cost $0) | ||||
| Materials 0.0% | 123 | |||
|
| ||||
| Smurfit-Stone Container Corp. (I) | 8.000 | 03/15/17 | $245,000 | 123 |
| Par value | Value | |||
| Short-Term Investments 1.7% (1.2% of Total Investments) | $3,160,000 | |||
|
| ||||
| (Cost $3,160,000) | ||||
| Repurchase Agreement 1.7% | 3,160,000 | |||
|
| ||||
| Repurchase Agreement with State Street Corp., dated 7-31-14 at | ||||
| 0.000% to be repurchased at $3,160,000 on 8-1-14, collateralized | ||||
| by $3,240,000 Federal Home Loan Mortgage Corp., 1.000% due 9- | ||||
| 27-17 (valued at $3,223,800, including interest) | 3,160,000 | 3,160,000 | ||
| Total investments (Cost $264,222,781)† 148.0% | $275,034,684 | |||
|
| ||||
| Other assets and liabilities, net (48.0%) | ($89,171,706) | |||
|
| ||||
| Total net assets 100.0% | $185,862,978 | |||
|
| ||||
The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the fund.
ADR American Depositary Receipts
IO Interest-Only Security - (Interest Tranche of Stripped Mortgage Pool). Rate shown is the annualized yield at the end of the period.
LIBOR London Interbank Offered Rate
PIK Paid-in-kind
USGG U.S. Generic Government Yield Index
(a) Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income.
(b) Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.
(H) Non-income producing - Issuer is in default.
(I) Non-income producing security.
(M) Term loans are variable rate obligations. The coupon rate shown represents the rate at period end.
(P) Variable rate obligation. The coupon rate shown represents the rate at period end.
(Q) Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.
(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 $62,611,920 or 33.7% of the fund's net assets as of 7-31-14.
(T) This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.
(Z) All or a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 7-31-14 was $147,045,077.
| 16 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
† At 7-31-14, the aggregate cost of investment securities for federal income tax purposes was $265,477,079. Net unrealized appreciation aggregated $9,557,605, of which $13,697,433 related to appreciated investment securities and $4,139,828 related to depreciated investment securities.
| 17 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
Notes to Portfolio of Investments
Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are valued at the last sale price or official closing price on the exchange where the security was acquired or most likely will be sold. 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. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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, as well as broker supplied prices. Swaps are valued using evaluated prices obtained from an independent pricing vendor. Securities that trade only in the over-the-counter (OTC) market are valued using bid prices. Certain short-term securities with maturities of 60 days or less at the time of purchase are valued at amortized cost. 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 fund’s Pricing Committee following procedures established 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. 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 fund’s own 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 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 July 31, 2014, by major security category or type:
| Level 2 | Level 3 | ||||
| Total Market | Significant | Significant | |||
| Value at | Level 1 Quoted | Observable | Unobservable | ||
| 7-31-14 | Price | Inputs | Inputs | ||
| Corporate Bonds | $128,769,494 | — | $128,739,785 | $29,709 | |
| Term Loans | 1,215,025 | — | 1,215,025 | — | |
| Capital Preferred Securities | 4,210,739 | — | 4,210,739 | — | |
| U.S. Government & Agency Obligations | 76,249,546 | — | 76,249,546 | — | |
| Foreign Government Obligations | 286,997 | — | 286,997 | — | |
| Collateralized Mortgage Obligations | 32,206,418 | — | 31,356,935 | 849,483 | |
| Asset Backed Securities | 13,767,706 | — | 13,767,706 | — | |
| Common Stocks | 11,446,833 | $11,446,833 | — | — | |
| Preferred Securities | 3,721,803 | 2,389,963 | 1,331,840 | — | |
| Escrow Certificates | 123 | — | 123 | — | |
| Short-Term Investments | 3,160,000 | — | 3,160,000 | — | |
|
| |||||
| Total Investments in Securities | $275,034,684 | $13,836,796 | $260,318,696 | $879,192 | |
| Other Financial Instruments: | |||||
| Interest Rate Swaps | ($481,904) | — | ($481,904) | — | |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund’s custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the fund’s investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, the MRA does not result in an offset of the net amounts owed. In the event of a default by the counterparty, realization of the collateral proceeds
| 18 |
John Hancock Income Securities Trust
As of 7-31-14 (Unaudited)
could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.
Stripped securities. Stripped securities are financial instruments structured to separate principal and interest cash flows so that one class receives principal payments from the underlying assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped security. If the underlying assets experience greater than anticipated prepayments of principal, the fund may fail to fully recover its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates or prepayments on the underlying securities. In addition, these securities present additional credit risk such that the fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.
Derivative instruments. The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. 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 interest receivable or payable under the swap contracts at specified, future intervals. Swap agreements are privately negotiated in the OTC market or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
During the period ended July 31, 2014, the fund used interest rate swaps in anticipation of rising interest rates. The following table summarizes the interest rate swap contracts held as of July 31, 2014.
| USD | PAYMENTS | PAYMENTS | ||||
| NOTIONAL | MADE BY | RECEIVED BY | MATURITY | MARKET | ||
| COUNTERPARTY | AMOUNT | FUND | FUND | DATE | VALUE | |
|
| ||||||
| Morgan Stanley | Fixed | |||||
| Capital Services | $22,000,000 | 1.442500% | 3 Month LIBOR (a) | Aug 2016 | ($452,079) | |
| Morgan Stanley | Fixed | |||||
| Capital Services | $22,000,000 | 1.093750% | 3 Month LIBOR (a) | May 2017 | (29,825) | |
|
| ||||||
| TOTAL | $44,000,000 | ($481,904) | ||||
(a) At 7-31-14, the 3-month LIBOR rate was 0.23910%
No interest rate swap positions were entered into or closed during the period ended July 31, 2014.
For additional information on the fund’s significant accounting policies, please refer to the fund’s most recent semiannual or annual shareholder report.
| 19 |
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/Andrew Arnott |
| ------------------------------ | |
| Andrew Arnott | |
| President | |
| Date: | September 23, 2014 |
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/Andrew Arnott |
| ------------------------------- | |
| Andrew Arnott | |
| President | |
| Date: | September 23, 2014 |
| By: | /s/Charles A. Rizzo |
| ------------------------------- | |
| Charles A. Rizzo | |
| Chief Financial Officer | |
| Date: | September 23, 2014 |