| 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: | January 31, 2012 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Corporate Bonds 81.85% (54.87% of Total Investments) | $140,962,201 | |||
|
| ||||
| (Cost $134,211,495) | ||||
| Consumer Discretionary 11.75% | 20,228,513 | |||
|
| ||||
| Auto Components 0.65% | ||||
| Allison Transmission, Inc. (S)(Z) | 7.125 | 05/15/19 | $380,000 | 382,375 |
| Exide Technologies (Z) | 8.625 | 02/01/18 | 280,000 | 231,000 |
| Hyva Global BV (S)(Z) | 8.625 | 03/24/16 | 340,000 | 281,350 |
| Visteon Corp. | 6.750 | 04/15/19 | 220,000 | 217,250 |
| Automobiles 1.79% | ||||
| Ford Motor Credit Company LLC (Z) | 5.000 | 05/15/18 | 440,000 | 455,474 |
| Ford Motor Credit Company LLC (Z) | 5.875 | 08/02/21 | 435,000 | 476,000 |
| Hyundai Capital Services, Inc. (S)(Z) | 4.375 | 07/27/16 | 310,000 | 317,887 |
| Hyundai Capital Services, Inc. (S)(Z) | 6.000 | 05/05/15 | 430,000 | 461,375 |
| Kia Motors Corp. (S)(Z) | 3.625 | 06/14/16 | 315,000 | 314,008 |
| Nissan Motor Acceptance Corp. (S)(Z) | 4.500 | 01/30/15 | 1,000,000 | 1,053,018 |
| Food Products 0.13% | ||||
| Simmons Foods, Inc. (S)(Z) | 10.500 | 11/01/17 | 250,000 | 224,375 |
| Hotels, Restaurants & Leisure 3.05% | ||||
| CCM Merger, Inc. (S)(Z) | 8.000 | 08/01/13 | 485,000 | 470,450 |
| Chester Downs & Marina LLC (S) | 9.250 | 02/01/20 | 85,000 | 86,063 |
| Downstream Development Authority of the Quapaw Tribe of | ||||
| Oklahoma (S)(Z) | 10.500 | 07/01/19 | 275,000 | 268,125 |
| Greektown Superholdings, Inc. | 13.000 | 07/01/15 | 1,713,000 | 1,832,910 |
| Jacobs Entertainment, Inc. (Z) | 9.750 | 06/15/14 | 600,000 | 564,000 |
| Landry's Acquisition Company (S) | 11.625 | 12/01/15 | 195,000 | 209,138 |
| Landry's, Inc. | 11.625 | 12/01/15 | 100,000 | 107,250 |
| Little Traverse Bay Bands of Odawa Indians (S)(Z) | 9.000 | 08/31/20 | 319,000 | 271,150 |
| MGM Resorts International (S) | 8.625 | 02/01/19 | 340,000 | 353,600 |
| Seminole Indian Tribe of Florida (S)(Z) | 6.535 | 10/01/20 | 650,000 | 636,877 |
| Seminole Indian Tribe of Florida (S)(Z) | 7.750 | 10/01/17 | 325,000 | 341,250 |
| Waterford Gaming LLC (S) | 8.625 | 09/15/14 | 221,551 | 104,713 |
| Household Durables 0.03% | ||||
| American Standard Americas (S) | 10.750 | 01/15/16 | 85,000 | 56,950 |
| Internet & Catalog Retail 0.31% | ||||
| Expedia, Inc. (Z) | 5.950 | 08/15/20 | 530,000 | 539,057 |
| Media 4.12% | ||||
| AMC Entertainment, Inc. | 8.750 | 06/01/19 | 140,000 | 147,700 |
| CBS Corp. (Z) | 7.875 | 07/30/30 | 595,000 | 769,365 |
| CCO Holdings LLC | 8.125 | 04/30/20 | 145,000 | 160,406 |
| Cinemark USA, Inc. | 7.375 | 06/15/21 | 195,000 | 205,238 |
| DIRECTV Holdings LLC (Z) | 6.350 | 03/15/40 | 220,000 | 254,339 |
| Grupo Televisa SAB (Z) | 6.625 | 01/15/40 | 310,000 | 352,306 |
| News America, Inc. | 6.150 | 03/01/37 | 165,000 | 187,876 |
| News America, Inc. (Z) | 6.150 | 02/15/41 | 275,000 | 328,522 |
| News America, Inc. | 6.400 | 12/15/35 | 150,000 | 171,564 |
| News America, Inc. (Z) | 7.600 | 10/11/15 | 1,000,000 | 1,141,441 |
| News America, Inc. (Z) | 7.750 | 01/20/24 | 1,020,000 | 1,274,031 |
| Nexstar Broadcasting, Inc. (Z) | 7.000 | 01/15/14 | 84,000 | 83,790 |
| Nexstar Broadcasting, Inc., PIK (Z) | 7.000 | 01/15/14 | 255,998 | 255,358 |
| Regal Cinemas Corp. | 8.625 | 07/15/19 | 115,000 | 126,213 |
| Regal Entertainment Group | 9.125 | 08/15/18 | 100,000 | 109,500 |
| 1 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Consumer Discretionary (continued) | ||||
|
| ||||
| Time Warner Cable, Inc. (Z) | 6.750 | 07/01/18 | $605,000 | $733,144 |
| UBM PLC (S)(Z) | 5.750 | 11/03/20 | 275,000 | 275,084 |
| XM Satellite Radio, Inc. (S)(Z) | 7.625 | 11/01/18 | 485,000 | 519,556 |
| Multiline Retail 0.44% | ||||
| Macy's Retail Holdings, Inc. | 3.875 | 01/15/22 | 140,000 | 143,546 |
| Macy's Retail Holdings, Inc. | 5.125 | 01/15/42 | 105,000 | 109,363 |
| Macy's Retail Holdings, Inc. | 7.875 | 08/15/36 | 444,000 | 500,888 |
| Specialty Retail 0.56% | ||||
| AutoNation, Inc. | 5.500 | 02/01/20 | 400,000 | 403,000 |
| Hillman Group, Inc. (Z) | 10.875 | 06/01/18 | 305,000 | 313,388 |
| Limited Brands, Inc. (Z) | 6.625 | 04/01/21 | 230,000 | 253,000 |
| Textiles, Apparel & Luxury Goods 0.67% | ||||
| Burlington Coat Factory Warehouse Corp. | 10.000 | 02/15/19 | 665,000 | 631,750 |
| Levi Strauss & Company (Z) | 7.625 | 05/15/20 | 500,000 | 522,500 |
| Consumer Staples 2.45% | 4,213,885 | |||
|
| ||||
| Food & Staples Retailing 0.27% | ||||
| Rite Aid Corp. | 9.375 | 12/15/15 | 450,000 | 453,375 |
| Food Products 0.89% | ||||
| Bunge Ltd. Finance Corp. (Z) | 4.100 | 03/15/16 | 205,000 | 214,858 |
| Bunge Ltd. Finance Corp. (Z) | 8.500 | 06/15/19 | 389,000 | 481,644 |
| Corp. Pesquera Inca SAC (S)(Z) | 9.000 | 02/10/17 | 340,000 | 352,750 |
| Del Monte Corp. | 7.625 | 02/15/19 | 235,000 | 231,181 |
| Grupo Bimbo SAB de CV (S) | 4.500 | 01/25/22 | 245,000 | 250,256 |
| Household Products 0.24% | ||||
| Reynolds Group Issuer, Inc. (S)(Z) | 9.000 | 04/15/19 | 420,000 | 417,900 |
| Personal Products 0.29% | ||||
| Hypermarcas SA (S) | 6.500 | 04/20/21 | 150,000 | 140,250 |
| Revlon Consumer Products Corp. (Z) | 9.750 | 11/15/15 | 335,000 | 358,450 |
| Tobacco 0.76% | ||||
| Alliance One International, Inc. (Z) | 10.000 | 07/15/16 | 1,000,000 | 972,500 |
| Lorillard Tobacco Company (Z) | 6.875 | 05/01/20 | 295,000 | 340,721 |
| Energy 9.76% | 16,806,890 | |||
|
| ||||
| Energy Equipment & Services 0.73% | ||||
| Astoria Depositor Corp., Series B (S)(Z) | 8.144 | 05/01/21 | 1,000,000 | 850,000 |
| Trinidad Drilling, Ltd. (S)(Z) | 7.875 | 01/15/19 | 265,000 | 280,900 |
| Weatherford International, Inc. | 6.800 | 06/15/37 | 105,000 | 119,489 |
| Gas Utilities 0.31% | ||||
| DCP Midstream LLC (S)(Z) | 9.750 | 03/15/19 | 405,000 | 531,948 |
| Oil, Gas & Consumable Fuels 8.72% | ||||
| Afren PLC (S) | 11.500 | 02/01/16 | 400,000 | 422,000 |
| Alpha Natural Resources, Inc. | 6.000 | 06/01/19 | 125,000 | 124,063 |
| Alpha Natural Resources, Inc. (Z) | 6.250 | 06/01/21 | 270,000 | 267,300 |
| Arch Coal, Inc. (S) | 7.000 | 06/15/19 | 160,000 | 160,400 |
| Arch Coal, Inc. (S)(Z) | 7.250 | 06/15/21 | 270,000 | 271,350 |
| BreitBurn Energy Partners LP (S) | 7.875 | 04/15/22 | 165,000 | 165,000 |
| Chesapeake Energy Corp. (Z) | 6.125 | 02/15/21 | 265,000 | 261,025 |
| Energy Transfer Partners LP | 5.200 | 02/01/22 | 135,000 | 142,673 |
| Energy Transfer Partners LP | 9.700 | 03/15/19 | 330,000 | 417,496 |
| 2 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Energy (continued) | ||||
|
| ||||
| Enterprise Products Operating LLC (7.000% to 6-1-17, then 3 | ||||
| month LIBOR + 2.778%) (Z) | 7.000 | 06/01/67 | $695,000 | $684,575 |
| EV Energy Partners LP | 8.000 | 04/15/19 | 400,000 | 413,000 |
| Kerr-McGee Corp. (Z) | 6.950 | 07/01/24 | 770,000 | 936,028 |
| Kinder Morgan Energy Partners LP (Z) | 7.750 | 03/15/32 | 195,000 | 240,106 |
| Kinder Morgan Finance Company LLC (Z) | 5.700 | 01/05/16 | 615,000 | 638,063 |
| Marathon Petroleum Corp. | 6.500 | 03/01/41 | 280,000 | 311,055 |
| MarkWest Energy Partners LP (Z) | 6.500 | 08/15/21 | 495,000 | 530,888 |
| Newfield Exploration Company (Z) | 5.750 | 01/30/22 | 260,000 | 276,250 |
| Niska Gas Storage US LLC (Z) | 8.875 | 03/15/18 | 395,000 | 379,694 |
| NuStar Logistics LP (Z) | 7.650 | 04/15/18 | 845,000 | 1,012,651 |
| Peabody Energy Corp. (S) | 6.250 | 11/15/21 | 325,000 | 334,750 |
| Petro-Canada (Z) | 9.250 | 10/15/21 | 1,000,000 | 1,422,143 |
| Petrohawk Energy Corp. | 6.250 | 06/01/19 | 595,000 | 665,656 |
| Petroleos Mexicanos (S) | 4.875 | 01/24/22 | 275,000 | 284,016 |
| Spectra Energy Capital LLC (Z) | 6.200 | 04/15/18 | 1,000,000 | 1,161,159 |
| Targa Resources Partners LP (S) | 6.375 | 08/01/22 | 245,000 | 248,675 |
| TransCanada Pipelines, Ltd. (6.350% to 5-15-17, then 3 | ||||
| month LIBOR + 2.210%) (Z) | 6.350 | 05/15/67 | 710,000 | 717,989 |
| Williams Partners LP (Z) | 7.250 | 02/01/17 | 1,620,000 | 1,957,763 |
| Woodside Finance, Ltd. (S)(Z) | 4.500 | 11/10/14 | 550,000 | 578,785 |
| Financials 29.09% | 50,097,845 | |||
|
| ||||
| Capital Markets 3.50% | ||||
| Affinion Group Holdings, Inc. | 11.625 | 11/15/15 | 235,000 | 198,575 |
| Credit Suisse AG (3 month LIBOR + 0.690% to 5-15-17, then | ||||
| 3 month LIBOR + 1.690%) (Q)(Z) | 1.147 | 05/15/17 | 715,000 | 457,200 |
| Credit Suisse New York (Z) | 4.375 | 08/05/20 | 555,000 | 565,706 |
| Credit Suisse New York (Z) | 5.400 | 01/14/20 | 355,000 | 359,240 |
| Jefferies Group, Inc. (Z) | 6.875 | 04/15/21 | 905,000 | 864,275 |
| Jefferies Group, Inc. | 8.500 | 07/15/19 | 165,000 | 172,838 |
| Macquarie Bank, Ltd. (S)(Z) | 6.625 | 04/07/21 | 260,000 | 247,640 |
| Macquarie Group, Ltd. (S)(Z) | 6.000 | 01/14/20 | 340,000 | 327,240 |
| Morgan Stanley | 5.500 | 07/28/21 | 150,000 | 148,429 |
| Morgan Stanley (Z) | 5.550 | 04/27/17 | 500,000 | 512,183 |
| Morgan Stanley | 5.750 | 01/25/21 | 140,000 | 139,959 |
| Morgan Stanley (Z) | 7.300 | 05/13/19 | 485,000 | 529,315 |
| Polymer Group, Inc. | 7.750 | 02/01/19 | 95,000 | 100,463 |
| The Goldman Sachs Group, Inc. (Z) | 5.250 | 07/27/21 | 300,000 | 299,908 |
| The Goldman Sachs Group, Inc. | 5.750 | 01/24/22 | 275,000 | 283,980 |
| The Goldman Sachs Group, Inc. (Z) | 6.150 | 04/01/18 | 760,000 | 819,859 |
| Commercial Banks 5.35% | ||||
| Abbey National Treasury Services PLC (Z) | 4.000 | 04/27/16 | 385,000 | 373,691 |
| Banco de Credito del Peru (S) | 4.750 | 03/16/16 | 175,000 | 175,438 |
| Barclays Bank PLC (Z) | 5.140 | 10/14/20 | 1,930,000 | 1,850,903 |
| Barclays Bank PLC (S)(Z) | 6.050 | 12/04/17 | 295,000 | 297,520 |
| Barclays Bank PLC (S) | 10.179 | 06/12/21 | 260,000 | 298,215 |
| BBVA Bancomer SA (S)(Z) | 6.500 | 03/10/21 | 485,000 | 482,333 |
| BPCE SA (12.500% to 9-30-19, then 3 month LIBOR + | ||||
| 12.980%) (Q)(S)(Z) | 12.500 | 09/30/19 | 330,000 | 310,834 |
| First Tennessee Bank NA (Z) | 5.050 | 01/15/15 | 405,000 | 410,577 |
| ICICI Bank, Ltd. (S)(Z) | 5.750 | 11/16/20 | 475,000 | 465,538 |
| Lloyds TSB Bank PLC (Z) | 6.375 | 01/21/21 | 440,000 | 471,004 |
| National City Bank (P)(Z) | 0.904 | 06/07/17 | 575,000 | 518,683 |
| 3 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Financials (continued) | ||||
|
| ||||
| Regions Financial Corp. (P)(Z) | 0.744 | 06/26/12 | $265,000 | $261,181 |
| Regions Financial Corp. (Z) | 7.750 | 11/10/14 | 1,000,000 | 1,045,000 |
| Santander Holdings USA, Inc. | 4.625 | 04/19/16 | 115,000 | 112,337 |
| Santander Issuances SA (6.500% to 11-15-14, then 3 month | ||||
| LIBOR + 3.920%) (S)(Z) | 6.500 | 08/11/19 | 600,000 | 529,389 |
| The Royal Bank of Scotland PLC (Z) | 4.875 | 03/16/15 | 330,000 | 334,075 |
| Wachovia Bank NA (Z) | 5.850 | 02/01/37 | 390,000 | 424,199 |
| Wachovia Bank NA (Z) | 6.600 | 01/15/38 | 325,000 | 386,365 |
| Wachovia Corp. (Z) | 5.750 | 06/15/17 | 405,000 | 465,593 |
| Consumer Finance 2.05% | ||||
| Capital One Financial Corp. (Z) | 6.150 | 09/01/16 | 730,000 | 773,943 |
| Capital One Financial Corp. (Z) | 6.750 | 09/15/17 | 1,000,000 | 1,151,545 |
| Discover Bank (Z) | 7.000 | 04/15/20 | 270,000 | 295,966 |
| Discover Financial Services (Z) | 10.250 | 07/15/19 | 585,000 | 734,823 |
| Nelnet, Inc. (P)(Z) | 3.951 | 09/29/36 | 715,000 | 572,110 |
| Diversified Financial Services 7.01% | ||||
| Bank of America Corp. | 5.700 | 01/24/22 | 415,000 | 430,199 |
| Bank of America Corp. (Z) | 6.500 | 08/01/16 | 305,000 | 325,320 |
| Bank of America NA | 5.300 | 03/15/17 | 150,000 | 149,308 |
| Bank of America NA (Z) | 6.000 | 10/15/36 | 390,000 | 367,137 |
| Bosphorus Financial Services, Ltd. (P)(S)(Z) | 2.257 | 02/15/12 | 31,250 | 31,244 |
| Citigroup, Inc. (Z) | 5.850 | 12/11/34 | 300,000 | 306,923 |
| Citigroup, Inc. (Z) | 6.125 | 11/21/17 | 1,935,000 | 2,129,750 |
| Cooperatieve Centrale Raiffeisen-Boerenleenbank BA | 3.375 | 01/19/17 | 275,000 | 283,137 |
| DTEK Finance BV (S) | 9.500 | 04/28/15 | 200,000 | 194,750 |
| General Electric Capital Corp. (Z) | 4.375 | 09/16/20 | 365,000 | 381,821 |
| General Electric Capital Corp. (Z) | 5.300 | 02/11/21 | 220,000 | 239,498 |
| General Electric Capital Corp. (Z) | 5.875 | 01/14/38 | 390,000 | 426,777 |
| General Electric Capital Corp. (Z) | 6.000 | 08/07/19 | 335,000 | 388,122 |
| JPMorgan Chase & Company (Z) | 3.700 | 01/20/15 | 295,000 | 310,712 |
| JPMorgan Chase & Company (Z) | 5.600 | 07/15/41 | 575,000 | 608,739 |
| JPMorgan Chase & Company (Z) | 6.000 | 01/15/18 | 765,000 | 867,655 |
| JPMorgan Chase & Company (7.900% to 4-30-18, then 3 | ||||
| month LIBOR + 3.470%) (Q)(Z) | 7.900 | 04/30/18 | 655,000 | 709,503 |
| Merrill Lynch & Company, Inc. | 6.220 | 09/15/26 | 175,000 | 166,544 |
| Merrill Lynch & Company, Inc. (Z) | 6.875 | 04/25/18 | 1,000,000 | 1,079,598 |
| Merrill Lynch & Company, Inc. (Z) | 7.750 | 05/14/38 | 310,000 | 326,228 |
| Nationstar Mortgage (Z) | 10.875 | 04/01/15 | 540,000 | 535,950 |
| The Bear Stearns Companies LLC (Z) | 7.250 | 02/01/18 | 1,000,000 | 1,196,238 |
| USB Realty Corp. (P)(Q)(S)(Z) | 1.719 | 01/15/17 | 800,000 | 610,000 |
| Insurance 5.26% | ||||
| Aflac, Inc. (Z) | 6.900 | 12/17/39 | 230,000 | 264,454 |
| Aflac, Inc. (Z) | 8.500 | 05/15/19 | 385,000 | 483,948 |
| AXA SA (6.379% to 12-14-36, then 3 month LIBOR + | ||||
| 2.256%) (Q)(S) | 6.379 | 12/14/36 | 175,000 | 130,813 |
| Chubb Corp. (6.375% until 4-15-17, then 3 month LIBOR + | ||||
| 2.250%) (Z) | 6.375 | 03/29/67 | 315,000 | 321,300 |
| CNA Financial Corp. (Z) | 6.500 | 08/15/16 | 720,000 | 785,436 |
| CNA Financial Corp. (Z) | 7.250 | 11/15/23 | 540,000 | 596,662 |
| CNO Financial Group, Inc. (S)(Z) | 9.000 | 01/15/18 | 375,000 | 398,438 |
| Glen Meadow Pass-Through Trust (6.505% to 2-15-17, then | ||||
| 3 month LIBOR +2.125%) (S)(Z) | 6.505 | 02/12/67 | 835,000 | 626,250 |
| Hartford Financial Services Group, Inc. (Z) | 6.625 | 03/30/40 | 225,000 | 229,821 |
| 4 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Financials (continued) | ||||
|
| ||||
| Liberty Mutual Group, Inc. (S)(Z) | 7.800 | 03/15/37 | $705,000 | $659,175 |
| Lincoln National Corp. (Z) | 8.750 | 07/01/19 | 535,000 | 669,471 |
| Lincoln National Corp. (6.050% until 4-20-17, then 3 month | ||||
| LIBOR + 2.040%) (Z) | 6.050 | 04/20/67 | 535,000 | 476,150 |
| Teachers Insurance & Annuity Association of America (S)(Z) | 6.850 | 12/16/39 | 605,000 | 796,943 |
| The Hanover Insurance Group, Inc. | 6.375 | 06/15/21 | 150,000 | 163,694 |
| Unum Group (Z) | 7.125 | 09/30/16 | 395,000 | 455,976 |
| UnumProvident Finance Company PLC (S)(Z) | 6.850 | 11/15/15 | 605,000 | 671,594 |
| W.R. Berkley Corp. (Z) | 5.600 | 05/15/15 | 365,000 | 388,851 |
| Willis Group Holdings PLC (Z) | 5.750 | 03/15/21 | 350,000 | 379,840 |
| Willis North America, Inc. (Z) | 7.000 | 09/29/19 | 495,000 | 567,675 |
| Real Estate Investment Trusts 5.81% | ||||
| Boston Properties LP | 3.700 | 11/15/18 | 195,000 | 205,446 |
| Brandywine Operating Partnership LP (Z) | 7.500 | 05/15/15 | 345,000 | 378,307 |
| CommonWealth REIT (Z) | 6.650 | 01/15/18 | 480,000 | 521,520 |
| DDR Corp. (Z) | 7.500 | 04/01/17 | 675,000 | 760,566 |
| Dexus Property Group (S)(Z) | 7.125 | 10/15/14 | 495,000 | 541,895 |
| Duke Realty LP (Z) | 6.750 | 03/15/20 | 590,000 | 688,387 |
| Duke Realty LP (Z) | 8.250 | 08/15/19 | 265,000 | 328,966 |
| Goodman Funding Pty, Ltd. (S)(Z) | 6.375 | 04/15/21 | 645,000 | 676,051 |
| Health Care REIT, Inc. (Z) | 4.950 | 01/15/21 | 400,000 | 411,231 |
| Health Care REIT, Inc. (Z) | 6.125 | 04/15/20 | 700,000 | 765,479 |
| Health Care REIT, Inc. (Z) | 6.200 | 06/01/16 | 505,000 | 552,852 |
| Healthcare Realty Trust, Inc. (Z) | 6.500 | 01/17/17 | 540,000 | 593,690 |
| Mack-Cali Realty LP (Z) | 7.750 | 08/15/19 | 330,000 | 403,928 |
| MPT Operating Partnership LP | 6.875 | 05/01/21 | 230,000 | 238,625 |
| Post Apartment Homes LP | 4.750 | 10/15/17 | 185,000 | 188,848 |
| ProLogis LP (Z) | 6.250 | 03/15/17 | 415,000 | 457,535 |
| Ventas Realty LP (Z) | 4.750 | 06/01/21 | 390,000 | 402,196 |
| Vornado Realty LP (Z) | 4.250 | 04/01/15 | 755,000 | 788,457 |
| WEA Finance LLC (S)(Z) | 6.750 | 09/02/19 | 290,000 | 342,860 |
| Weyerhaeuser Company (Z) | 7.375 | 03/15/32 | 690,000 | 752,415 |
| Real Estate Management & Development 0.11% | ||||
| Realogy Corp. (S) | 7.875 | 02/15/19 | 215,000 | 198,875 |
| Health Care 2.40% | 4,140,536 | |||
|
| ||||
| Biotechnology 0.22% | ||||
| Gilead Sciences, Inc. | 4.400 | 12/01/21 | 195,000 | 211,260 |
| Kinetic Concepts, Inc. (S) | 10.500 | 11/01/18 | 160,000 | 163,200 |
| Health Care Equipment & Supplies 0.31% | ||||
| Alere, Inc. (Z) | 7.875 | 02/01/16 | 335,000 | 348,400 |
| Alere, Inc. | 8.625 | 10/01/18 | 185,000 | 192,863 |
| Health Care Providers & Services 0.81% | ||||
| BioScrip, Inc. (Z) | 10.250 | 10/01/15 | 285,000 | 293,550 |
| Gentiva Health Services, Inc. | 11.500 | 09/01/18 | 70,000 | 59,938 |
| HCA, Inc. (Z) | 7.500 | 02/15/22 | 380,000 | 406,600 |
| Medco Health Solutions, Inc. (Z) | 7.125 | 03/15/18 | 545,000 | 642,947 |
| Pharmaceuticals 1.06% | ||||
| Catalent Pharma Solutions, Inc., PIK (Z) | 9.500 | 04/15/15 | 425,756 | 439,593 |
| Endo Pharmaceuticals Holdings, Inc. | 7.250 | 01/15/22 | 390,000 | 429,488 |
| Hospira, Inc. (Z) | 6.050 | 03/30/17 | 485,000 | 533,197 |
| Valeant Pharmaceuticals International, Inc. (S) | 6.750 | 10/01/17 | 95,000 | 97,019 |
| 5 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Health Care (continued) | ||||
|
| ||||
| Valeant Pharmaceuticals International, Inc. (S)(Z) | 6.875 | 12/01/18 | $315,000 | $322,481 |
| Industrials 7.73% | 13,312,219 | |||
|
| ||||
| Aerospace & Defense 1.90% | ||||
| Bombardier, Inc. (S)(Z) | 7.750 | 03/15/20 | 240,000 | 272,400 |
| Colt Defense LLC | 8.750 | 11/15/17 | 250,000 | 165,000 |
| Ducommun, Inc. (S) | 9.750 | 07/15/18 | 70,000 | 71,575 |
| Embraer Overseas, Ltd. (Z) | 6.375 | 01/15/20 | 380,000 | 418,950 |
| Huntington Ingalls Industries, Inc. (S) | 7.125 | 03/15/21 | 360,000 | 376,200 |
| Kratos Defense & Security Solutions, Inc. (Z) | 10.000 | 06/01/17 | 230,000 | 243,225 |
| Lockheed Martin Corp. (Z) | 3.350 | 09/15/21 | 615,000 | 625,428 |
| Textron Financial Corp. (6.000% to 2-15-17, then 3 month | ||||
| LIBOR + 1.735%) (S)(Z) | 6.000 | 02/15/67 | 750,000 | 562,500 |
| Textron, Inc. (Z) | 5.600 | 12/01/17 | 505,000 | 537,074 |
| Airlines 3.03% | ||||
| America West Airlines 2000-1 Pass Through Trust (Z) | 8.057 | 07/02/20 | 189,240 | 191,132 |
| Continental Airlines 1997-4 Class A Pass Through Trust | 6.900 | 01/02/18 | 312,367 | 327,985 |
| Continental Airlines 1998-1 Class A Pass Through Trust (Z) | 6.648 | 09/15/17 | 196,662 | 203,546 |
| Continental Airlines 1999-1 Class A Pass Through Trust (Z) | 6.545 | 02/02/19 | 211,272 | 225,005 |
| Continental Airlines 2000-2 Class B Pass Through Trust (Z) | 8.307 | 04/02/18 | 155,383 | 153,052 |
| Continental Airlines 2007-1 Class A Pass Through Trust (Z) | 5.983 | 04/19/22 | 525,155 | 559,972 |
| Continental Airlines 2010-1 Class A Pass Through Trust | 4.750 | 01/12/21 | 152,014 | 157,715 |
| Delta Air Lines 2007-1 Class A Pass Through Trust (Z) | 6.821 | 08/10/22 | 608,854 | 657,562 |
| Delta Air Lines 2010-1 Class A Pass Through Trust | 6.200 | 07/02/18 | 202,339 | 217,514 |
| Delta Air Lines 2011-1 Class A Pass Through Trust (Z) | 5.300 | 04/15/19 | 375,000 | 393,750 |
| Northwest Airlines 2002-1 Class G-2 Pass Through Trust (Z) | 6.264 | 11/20/21 | 540,604 | 540,604 |
| Northwest Airlines 2007-1 Class A Pass Through Trust (Z) | 7.027 | 11/01/19 | 407,680 | 423,987 |
| United Airlines 2007-1 Class C Pass Through Trust (P) | 3.059 | 07/02/14 | 612,256 | 570,928 |
| United Airlines 2009-1 Pass Through Trust | 10.400 | 11/01/16 | 149,732 | 168,823 |
| United Airlines 2009-2A Pass Through Trust (Z) | 9.750 | 01/15/17 | 379,873 | 427,357 |
| Building Products 0.76% | ||||
| Masco Corp. (Z) | 7.125 | 03/15/20 | 285,000 | 293,465 |
| Voto-Votorantim Overseas Trading Operations NV (S)(Z) | 6.625 | 09/25/19 | 450,000 | 484,650 |
| Voto-Votorantim, Ltd. (S)(Z) | 6.750 | 04/05/21 | 490,000 | 526,750 |
| Commercial Services & Supplies 0.55% | ||||
| Garda World Security Corp. (S) | 9.750 | 03/15/17 | 100,000 | 104,250 |
| International Lease Finance Corp. (S)(Z) | 7.125 | 09/01/18 | 290,000 | 317,550 |
| Steelcase, Inc. (Z) | 6.375 | 02/15/21 | 500,000 | 520,497 |
| Construction & Engineering 0.19% | ||||
| Tutor Perini Corp. (Z) | 7.625 | 11/01/18 | 335,000 | 325,788 |
| Electrical Equipment 0.12% | ||||
| Coleman Cable, Inc. | 9.000 | 02/15/18 | 205,000 | 209,100 |
| Industrial Conglomerates 0.26% | ||||
| Odebrecht Finance, Ltd. (S)(Z) | 6.000 | 04/05/23 | 350,000 | 352,345 |
| Odebrecht Finance, Ltd. (Q)(S) | 7.500 | 09/14/15 | 100,000 | 100,250 |
| Marine 0.25% | ||||
| Navios Maritime Holdings, Inc. | 8.125 | 02/15/19 | 225,000 | 177,188 |
| Navios South American Logistics, Inc. (S)(Z) | 9.250 | 04/15/19 | 315,000 | 258,300 |
| Road & Rail 0.42% | ||||
| The Hertz Corp. (Z) | 6.750 | 04/15/19 | 625,000 | 645,313 |
| Western Express, Inc. (S) | 12.500 | 04/15/15 | 146,000 | 75,190 |
| 6 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Industrials (continued) | ||||
|
| ||||
| Trading Companies & Distributors 0.14% | ||||
| Aircastle, Ltd. (Z) | 9.750 | 08/01/18 | $225,000 | $247,500 |
| Transportation Infrastructure 0.11% | ||||
| Asciano Finance, Ltd. (S)(Z) | 4.625 | 09/23/20 | 185,000 | 182,799 |
| Information Technology 0.63% | 1,086,383 | |||
|
| ||||
| Computers & Peripherals 0.19% | ||||
| Hewlett-Packard Company (Z) | 4.375 | 09/15/21 | 310,000 | 326,433 |
| IT Services 0.44% | ||||
| Brightstar Corp. (S)(Z) | 9.500 | 12/01/16 | 560,000 | 576,800 |
| Equinix, Inc. | 8.125 | 03/01/18 | 165,000 | 183,150 |
| Materials 7.04% | 12,129,568 | |||
|
| ||||
| Chemicals 1.09% | ||||
| American Pacific Corp. (Z) | 9.000 | 02/01/15 | 245,000 | 237,650 |
| Braskem America Finance Company (S)(Z) | 7.125 | 07/22/41 | 425,000 | 418,200 |
| Braskem Finance, Ltd. (S)(Z) | 7.000 | 05/07/20 | 515,000 | 557,488 |
| Fufeng Group, Ltd. (S)(Z) | 7.625 | 04/13/16 | 335,000 | 285,588 |
| Incitec Pivot Finance LLC (S)(Z) | 6.000 | 12/10/19 | 345,000 | 378,558 |
| Construction Materials 0.55% | ||||
| Building Materials Corp. of America (S)(Z) | 6.750 | 05/01/21 | 230,000 | 247,250 |
| Cemex SAB de CV (S)(Z) | 9.000 | 01/11/18 | 510,000 | 443,700 |
| Severstal Columbus LLC | 10.250 | 02/15/18 | 100,000 | 109,125 |
| Vulcan Materials Company | 7.500 | 06/15/21 | 130,000 | 142,025 |
| Containers & Packaging 0.74% | ||||
| Pretium Packaging LLC | 11.500 | 04/01/16 | 165,000 | 163,350 |
| Solo Cup Company (Z) | 10.500 | 11/01/13 | 250,000 | 253,750 |
| Temple-Inland, Inc. (Z) | 6.625 | 01/15/18 | 750,000 | 868,218 |
| Metals & Mining 3.20% | ||||
| Alcoa, Inc. (Z) | 5.400 | 04/15/21 | 255,000 | 267,917 |
| Allegheny Technologies, Inc. | 5.950 | 01/15/21 | 140,000 | 153,907 |
| Allegheny Technologies, Inc. (Z) | 9.375 | 06/01/19 | 280,000 | 361,049 |
| ArcelorMittal (Z) | 6.750 | 03/01/41 | 280,000 | 273,436 |
| ArcelorMittal (Z) | 9.850 | 06/01/19 | 370,000 | 436,466 |
| Cliffs Natural Resources, Inc. (Z) | 6.250 | 10/01/40 | 295,000 | 308,829 |
| Commercial Metals Company (Z) | 7.350 | 08/15/18 | 310,000 | 309,225 |
| FMG Resources August 2006 Pty, Ltd. (S) | 6.875 | 02/01/18 | 255,000 | 259,463 |
| FMG Resources August 2006 Pty, Ltd. (S) | 8.250 | 11/01/19 | 170,000 | 182,325 |
| Gerdau Trade, Inc. (S)(Z) | 5.750 | 01/30/21 | 330,000 | 333,300 |
| JMC Steel Group (S) | 8.250 | 03/15/18 | 185,000 | 189,625 |
| Metinvest BV (S)(Z) | 8.750 | 02/14/18 | 435,000 | 378,450 |
| Rain CII Carbon LLC (S)(Z) | 8.000 | 12/01/18 | 555,000 | 575,813 |
| SunCoke Energy, Inc. | 7.625 | 08/01/19 | 259,000 | 261,590 |
| Teck Resources, Ltd. | 6.250 | 07/15/41 | 155,000 | 182,333 |
| Teck Resources, Ltd. (Z) | 10.750 | 05/15/19 | 239,000 | 292,166 |
| Thompson Creek Metals Company, Inc. | 7.375 | 06/01/18 | 395,000 | 369,325 |
| Vale Overseas, Ltd. (Z) | 6.875 | 11/10/39 | 320,000 | 379,244 |
| Paper & Forest Products 1.46% | ||||
| Georgia-Pacific LLC (S)(Z) | 5.400 | 11/01/20 | 800,000 | 904,979 |
| Georgia-Pacific LLC | 7.250 | 06/01/28 | 165,000 | 199,686 |
| International Paper Company (Z) | 9.375 | 05/15/19 | 385,000 | 508,748 |
| 7 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Materials (continued) | ||||
|
| ||||
| Verso Paper Holdings LLC | 8.750 | 02/01/19 | $100,000 | $55,500 |
| Westvaco Corp. (Z) | 7.950 | 02/15/31 | 770,000 | 841,290 |
| Telecommunication Services 4.09% | 7,042,119 | |||
|
| ||||
| Diversified Telecommunication Services 3.57% | ||||
| BellSouth Telecommunications, Inc. (Z) | 6.300 | 12/15/15 | 513,172 | 548,680 |
| CenturyLink, Inc. (Z) | 6.450 | 06/15/21 | 305,000 | 321,534 |
| CenturyLink, Inc. (Z) | 7.600 | 09/15/39 | 305,000 | 310,000 |
| Crown Castle Towers LLC (S)(Z) | 4.883 | 08/15/20 | 760,000 | 791,934 |
| Frontier Communications Corp. (Z) | 8.500 | 04/15/20 | 635,000 | 628,650 |
| GTP Acquisition Partners I LLC (S)(Z) | 4.347 | 06/15/16 | 650,000 | 654,038 |
| GTP Acquisition Partners I LLC (S)(Z) | 7.628 | 06/15/16 | 325,000 | 319,276 |
| GTP Towers Issuer LLC (S) | 8.112 | 02/15/15 | 885,000 | 905,099 |
| PAETEC Holding Corp. (Z) | 9.875 | 12/01/18 | 369,000 | 412,358 |
| Qwest Communications International, Inc. | 8.000 | 10/01/15 | 275,000 | 294,943 |
| Qwest Corp. (Z) | 8.375 | 05/01/16 | 330,000 | 384,372 |
| Telecom Italia Capital SA (Z) | 7.200 | 07/18/36 | 365,000 | 330,325 |
| Telecom Italia Capital SA (Z) | 7.721 | 06/04/38 | 260,000 | 243,750 |
| Wireless Telecommunication Services 0.52% | ||||
| America Movil SAB de CV (Z) | 5.000 | 03/30/20 | 440,000 | 495,647 |
| Nextel Communications, Inc. | 7.375 | 08/01/15 | 415,000 | 401,513 |
| Utilities 6.91% | 11,904,243 | |||
|
| ||||
| Electric Utilities 3.81% | ||||
| Beaver Valley II Funding (Z) | 9.000 | 06/01/17 | 384,000 | 401,706 |
| BVPS II Funding Corp. (Z) | 8.890 | 06/01/17 | 475,000 | 528,746 |
| Commonwealth Edison Company (Z) | 5.800 | 03/15/18 | 525,000 | 622,588 |
| Exelon Corp. (Z) | 4.900 | 06/15/15 | 985,000 | 1,076,018 |
| FPL Energy National Wind LLC (S)(Z) | 5.608 | 03/10/24 | 239,808 | 248,513 |
| ITC Holdings Corp. (S)(Z) | 5.500 | 01/15/20 | 415,000 | 473,891 |
| Oncor Electric Delivery Company LLC (Z) | 5.000 | 09/30/17 | 820,000 | 939,014 |
| PNM Resources, Inc. | 9.250 | 05/15/15 | 705,000 | 779,025 |
| PNPP II Funding Corp. (Z) | 9.120 | 05/30/16 | 246,000 | 264,758 |
| PPL Capital Funding, Inc. (6.700% to 3-30-17, then 3 month | ||||
| LIBOR + 2.665%) (Z) | 6.700 | 03/30/67 | 525,000 | 518,438 |
| Southern California Edison Company (6.250% to 2-1-22, | ||||
| then 3 month LIBOR + 4.199%) (Q) | 6.250 | 02/01/22 | 275,000 | 280,110 |
| TXU Corp. (Z) | 7.460 | 01/01/15 | 94,476 | 94,560 |
| W3A Funding Corp. (Z) | 8.090 | 01/02/17 | 337,407 | 333,547 |
| Independent Power Producers & Energy Traders 1.62% | ||||
| Allegheny Energy Supply Company LLC (S)(Z) | 5.750 | 10/15/19 | 460,000 | 495,671 |
| DPL, Inc. (S)(Z) | 7.250 | 10/15/21 | 570,000 | 634,125 |
| Exelon Generation Company LLC (Z) | 6.250 | 10/01/39 | 360,000 | 445,333 |
| Ipalco Enterprises, Inc. | 5.000 | 05/01/18 | 500,000 | 493,125 |
| NRG Energy, Inc. (Z) | 7.625 | 01/15/18 | 385,000 | 377,300 |
| NRG Energy, Inc. (Z) | 8.250 | 09/01/20 | 355,000 | 349,675 |
| Multi-Utilities 1.08% | ||||
| Integrys Energy Group, Inc. (6.110% to 12-1-16, then 3 | ||||
| month LIBOR + 2.120%) (Z) | 6.110 | 12/01/66 | 650,000 | 637,813 |
| MidAmerican Energy Holdings Company (Z) | 8.480 | 09/15/28 | 550,000 | 803,523 |
| Wisconsin Energy Corp. (6.250% to 5-15-17, then 3 month | ||||
| LIBOR + 2.113%) (Z) | 6.250 | 05/15/67 | 410,000 | 419,225 |
| 8 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Utilities (continued) | ||||
|
| ||||
| Water Utilities 0.40% | ||||
| Cia de Saneamento Basico do Estado de Sao Paulo (S)(Z) | 6.250 | 12/16/20 | $305,000 | $314,150 |
| Midwest Generation LLC, Series B (Z) | 8.560 | 01/02/16 | 386,932 | 373,389 |
| Convertible Bonds 0.20% (0.13% of Total Investments) | $346,580 | |||
|
| ||||
| (Cost $267,530) | ||||
| Consumer Discretionary 0.20% | 346,580 | |||
|
| ||||
| Media 0.20% | ||||
| XM Satellite Radio, Inc. (S)(Z) | 7.000 | 12/01/14 | 248,000 | 346,580 |
| Municipal Bonds 0.31% (0.21% of Total Investments) | $540,864 | |||
|
| ||||
| (Cost $450,794) | ||||
| California 0.17% | 304,241 | |||
|
| ||||
| State of California | ||||
| General Obligation Bond | 7.600 | 11/01/40 | 225,000 | 304,241 |
| Illinois 0.14% | 236,623 | |||
|
| ||||
| State of Illinois | ||||
| General Obligation Bond | 5.100 | 06/01/33 | 250,000 | 236,623 |
| Term Loans (M) 0.64% (0.43% of Total Investments) | $1,103,102 | |||
|
| ||||
| (Cost $1,251,244) | ||||
| Consumer Discretionary 0.51% | 887,319 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.43% | ||||
| CCM Merger, Inc. | 7.000 | 03/01/17 | 191,996 | 190,976 |
| Kalispel Tribal Economic Authority | 7.500 | 02/22/17 | 581,364 | 546,482 |
| Media 0.08% | ||||
| Vertis, Inc. | 11.750 | 12/31/15 | 277,520 | 149,861 |
| Financials 0.13% | 215,783 | |||
|
| ||||
| Real Estate Investment Trusts 0.13% | ||||
| iStar Financial, Inc. | 7.000 | 06/30/14 | 220,000 | 215,783 |
|
| ||||
| Capital Preferred Securities (a) 2.89% (1.93% of Total Investments) | $4,969,438 | |||
|
| ||||
| (Cost $5,102,150) | ||||
| Financials 2.89% | 4,969,438 | |||
|
| ||||
| Capital Markets 0.78% | ||||
| State Street Capital Trust III (P)(Q)(Z) | 5.536 | 04/02/12 | 715,000 | 716,852 |
| State Street Capital Trust IV (P)(Z) | 1.546 | 06/15/37 | 935,000 | 631,393 |
| Commercial Banks 1.46% | ||||
| Fifth Third Capital Trust IV (6.500% to 4-15-17 then 3 month | ||||
| LIBOR + 1.368%) (Z) | 6.500 | 04/15/37 | 825,000 | 818,813 |
| PNC Financial Services Group, Inc. (Q) | 6.750 | 08/01/21 | 215,000 | 222,454 |
| PNC Preferred Funding Trust III (8.700% to 3-15-13, then 3 | ||||
| month LIBOR + 5.226%) (Q)(S)(Z) | 8.700 | 03/15/13 | 835,000 | 863,607 |
| Regions Financing Trust II (6.625% to 5-15-27, then 3 month | ||||
| LIBOR 1.290%) (Q) | 6.625 | 05/15/27 | 160,000 | 142,400 |
| Sovereign Capital Trust VI (Z) | 7.908 | 06/13/36 | 480,000 | 456,000 |
| 9 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Financials (continued) | ||||
|
| ||||
| Insurance 0.65% | ||||
| Aon Corp. (Z) | 8.205 | 01/01/27 | $345,000 | $407,031 |
| MetLife Capital Trust X (9.250% to 4-8-38 then 3 month | ||||
| LIBOR + 5.540%) (S) | 9.250 | 04/08/38 | 315,000 | 372,488 |
| ZFS Finance USA Trust II (6.450% to 6-15-16 then 3 month | ||||
| LIBOR + 2.000%) (S)(Z) | 6.450 | 12/15/65 | 360,000 | 338,400 |
| U.S. Government & Agency Obligations 38.35% (25.71% of Total Investments) | $66,054,358 | |||
|
| ||||
| (Cost $64,622,226) | ||||
| U.S. Government 2.21% | 3,801,767 | |||
|
| ||||
| U.S. Treasury Bonds | 3.750 | 08/15/41 | 480,000 | 559,725 |
| U.S. Treasury Notes | 2.000 | 11/15/21 | 2,605,000 | 2,653,031 |
| U.S. Treasury Strips, PO | 2.907 | 11/15/30 | 1,020,000 | 589,011 |
| U.S. Government Agency 36.14% | 62,252,591 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| 30 Yr Pass Thru CTF | 5.000 | 03/01/41 | 5,913,379 | 6,487,556 |
| 30 Yr Pass Thru CTF | 6.500 | 06/01/37 | 42,340 | 47,064 |
| 30 Yr Pass Thru CTF | 6.500 | 10/01/37 | 92,875 | 103,120 |
| 30 Yr Pass Thru CTF | 6.500 | 11/01/37 | 193,431 | 214,769 |
| 30 Yr Pass Thru CTF | 6.500 | 12/01/37 | 84,180 | 93,466 |
| 30 Yr Pass Thru CTF (Z) | 6.500 | 04/01/39 | 2,147,008 | 2,383,850 |
| Federal National Mortgage Association | ||||
| 30 Yr Pass Thru CTF (Z) | 4.000 | 10/01/40 | 778,363 | 828,833 |
| 30 Yr Pass Thru CTF | 4.000 | 09/01/41 | 14,194,445 | 15.056.840 |
| 30 Yr Pass Thru CTF | 4.000 | 10/01/41 | 6,281,339 | 6,683,727 |
| 30 Yr Pass Thru CTF (Z) | 4.500 | 10/01/40 | 3,366,404 | 3,630,208 |
| 30 Yr Pass Thru CTF | 5.000 | 02/01/41 | 3,070,836 | 3,315,509 |
| 30 Yr Pass Thru CTF | 5.000 | 04/01/41 | 952,911 | 1,047,001 |
| 30 Yr Pass Thru CTF | 5.500 | 02/01/36 | 1,733,773 | 1,886,815 |
| 30 Yr Pass Thru CTF (Z) | 5.500 | 12/01/36 | 4,777,567 | 5,191,823 |
| 30 Yr Pass Thru CTF | 5.500 | 06/01/37 | 799,978 | 869,343 |
| 30 Yr Pass Thru CTF (Z) | 5.500 | 06/01/38 | 1,600,462 | 1,739,236 |
| 30 Yr Pass Thru CTF (Z) | 5.500 | 10/01/39 | 3,831,905 | 4,164,163 |
| 30 Yr Pass Thru CTF | 5.500 | 08/01/40 | 389,750 | 424,397 |
| 30 Yr Pass Thru CTF | 6.000 | 05/01/37 | 2,036,387 | 2,245,768 |
| 30 Yr Pass Thru CTF (Z) | 6.500 | 07/01/36 | 709,015 | 793,072 |
| 30 Yr Pass Thru CTF (Z) | 6.500 | 01/01/39 | 3,417,718 | 3,821,837 |
| 30 Yr Pass Thru CTF (Z) | 6.500 | 03/01/39 | 211,851 | 237,166 |
| 30 Yr Pass Thru CTF | 6.500 | 06/01/39 | 282,603 | 316,107 |
| Government National Mortgage Association | ||||
| 30 Yr Pass Thru CTF (Z) | 5.500 | 11/15/38 | 601,462 | 670,921 |
| 10 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Foreign Government Obligations 0.22% (0.15% of Total Investments) | $378,530 | |||
|
| ||||
| (Cost $368,463) | ||||
| South Korea 0.22% | 378,530 | |||
|
| ||||
| Korea Development Bank (Z) | 4.000 | 09/09/16 | $370,000 | 378,530 |
| Collateralized Mortgage Obligations 13.65% (9.15% of Total Investments) | $23,503,868 | |||
|
| ||||
| (Cost $27,144,672) | ||||
| Commercial & Residential 12.06% | 20,761,901 | |||
|
| ||||
| American Home Mortgage Assets | ||||
| Series 2006-6, Class XP IO | 2.136 | 12/25/46 | 7,866,131 | 498,522 |
| American Tower Trust | ||||
| Series 2007-1A, Class D (S) | 5.957 | 04/15/37 | 865,000 | 919,506 |
| Banc of America Commercial Mortgage, Inc. | ||||
| Series 2006-2, Class AM (P) | 5.956 | 05/10/45 | 595,000 | 637,770 |
| Series 2006-4, Class AM | 5.675 | 07/10/46 | 845,000 | 891,303 |
| Series 2006-3, Class A4 | 5.889 | 07/10/44 | 785,000 | 880,151 |
| Bear Stearns Adjustable Rate Mortgage Trust | ||||
| Series 2005-1, Class B2 (P) | 3.499 | 03/25/35 | 774,274 | 102,063 |
| Bear Stearns Alt-A Trust | ||||
| Series 2004-12 1A1 | 0.626 | 01/25/35 | 719,556 | 580,206 |
| Series 2005-3, Class B2 (P) | 2.534 | 04/25/35 | 536,036 | 12,428 |
| Bear Stearns Commercial Mortgage Securities, Inc. | ||||
| Series 2006-PW14, Class D (S) | 5.412 | 12/11/38 | 655,000 | 173,109 |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||
| Series 2005-CD1, Class C (P) | 5.399 | 07/15/44 | 295,000 | 220,899 |
| Countrywide Alternative Loan Trust | ||||
| Series 2006-OA12, Class X IO | 2.706 | 09/20/46 | 11,450,090 | 744,045 |
| First Horizon Alternative Mortgage Securities | ||||
| Series 2004-AA5, Class B1 (P) | 2.326 | 12/25/34 | 406,886 | 45,504 |
| GMAC Mortgage Loan Trust | ||||
| Series 2004-AR2, Class 3A (P) | 3.168 | 08/19/34 | 837,826 | 745,338 |
| Greenwich Capital Commercial Funding Corp. | ||||
| Series 2006-GG7, Class AM (P) | 6.079 | 07/10/38 | 670,000 | 692,846 |
| GSR Mortgage Loan Trust | ||||
| Series 2006-4F, Class 6A1 | 6.500 | 05/25/36 | 2,698,957 | 1,850,346 |
| Series 2004-9, Class B1 (P) | 3.099 | 08/25/34 | 791,790 | 291,980 |
| Harborview Mortgage Loan Trust | ||||
| Series 2004-11, Class X1 IO | 2.027 | 01/19/35 | 4,521,106 | 328,671 |
| Series 2005-11, Class X IO | 2.077 | 08/19/45 | 2,945,622 | 129,392 |
| Series 2005-2, Class IX IO | 2.194 | 05/19/35 | 12,030,257 | 627,675 |
| Series 2005-8, Class 1X IO | 2.172 | 09/19/35 | 4,813,820 | 236,597 |
| Series 2007-3, Class ES IO | 0.350 | 05/19/47 | 12,029,271 | 75,183 |
| Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 14,796,931 | 91,889 |
| Series 2007-6, Class ES IO (S) | 0.342 | 08/19/37 | 10,052,221 | 63,430 |
| IndyMac Index Mortgage Loan Trust | ||||
| Series 2004-AR13, Class B1 | 5.296 | 01/25/35 | 309,032 | 26,224 |
| Series 2005-AR18, Class 1X IO | 2.056 | 10/25/36 | 9,810,881 | 651,344 |
| Series 2005-AR18, Class 2X IO | 1.722 | 10/25/36 | 9,349,420 | 453,914 |
| Series 2005-AR5, Class B1 (P) | 2.601 | 05/25/35 | 220,962 | 1,732 |
| JPMorgan Chase Commercial Mortgage Securities Corp. | ||||
| Series 2005-PDP5, Class AM (P) | 5.415 | 12/15/44 | 1,155,000 | 1,241,745 |
| Series 2006-LDP7, Class AM (P) | 6.065 | 04/15/45 | 535,000 | 566,872 |
| 11 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Commercial & Residential (continued) | ||||
|
| ||||
| LB-UBS Commercial Mortgage Trust | ||||
| Series 2007-C1, Class AM | 5.455 | 02/15/40 | $850,000 | $869,112 |
| MLCC Mortgage Investors, Inc. | ||||
| Series 2006-3, Class 2A1 (P) | 2.404 | 10/25/36 | 691,912 | 637,995 |
| Series 2007-3, Class M1 (P) | 5.335 | 09/25/37 | 283,639 | 149,355 |
| Series 2007-3, Class M2 (P) | 5.335 | 09/25/37 | 104,717 | 13,300 |
| Series 2007-3, Class M3 (P) | 5.335 | 09/25/37 | 71,101 | 5,115 |
| Morgan Stanley Capital I | ||||
| Series 2008-HQ8, Class AM (P) | 5.647 | 03/12/44 | 1,020,000 | 1,067,575 |
| Provident Funding Mortgage Loan Trust | ||||
| Series 2005-1, Class B1 (P) | 2.659 | 05/25/35 | 385,199 | 57,109 |
| Thornburg Mortgage Securities Trust | ||||
| Series 2004-1, Class II2A (P) | 1.752 | 03/25/44 | 809,570 | 701,859 |
| WaMu Mortgage Pass Through Certificates | ||||
| Series 2004-AR13, Class X IO | 1.336 | 11/25/34 | 11,812,577 | 565,465 |
| Series 2005-AR1, Class X IO | 1.500 | 01/25/45 | 17,493,473 | 823,390 |
| Series 2005-AR2, Class X IO | 1.559 | 01/25/45 | 12,966,450 | 639,587 |
| Series 2005-AR4, Class B1 (P) | 2.565 | 04/25/35 | 1,430,998 | 268,598 |
| Series 2005-AR6, Class X IO | 1.456 | 04/25/45 | 8,093,218 | 425,004 |
| Series 2005-AR8, Class X IO | 1.634 | 07/25/45 | 14,551,159 | 757,753 |
| U.S. Government Agency 1.59% | 2,741,967 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| Series 3747, Class HI IO | 4.500 | 07/15/37 | 6,319,835 | 723,428 |
| Series 3794, Class PI IO | 4.500 | 02/15/38 | 1,051,335 | 119,759 |
| Federal National Mortgage Association | ||||
| Series 2009-47, Class EI IO | 5.000 | 08/25/19 | 817,813 | 78,248 |
| Series 2010-68, Class CI IO | 5.000 | 11/25/38 | 1,350,789 | 162,308 |
| Series 398, Class C3 IO | 4.500 | 05/25/39 | 1,260,819 | 151,040 |
| Series 401, Class C2 IO | 4.500 | 06/25/39 | 796,300 | 70,502 |
| Series 402, Class 3 IO | 4.000 | 11/25/39 | 1,047,399 | 116,021 |
| Series 402, Class 4 IO | 4.000 | 10/25/39 | 1,811,659 | 203,565 |
| Series 402, Class 7 IO | 4.500 | 11/25/39 | 1,560,634 | 189,083 |
| Series 402, Class 8 IO | 4.500 | 11/25/39 | 1,815,525 | 213,438 |
| Series 407, Class 15 IO | 5.000 | 01/25/40 | 1,403,980 | 213,738 |
| Series 407, Class 16 IO | 5.000 | 01/25/40 | 332,869 | 35,512 |
| Series 407, Class 17 IO | 5.000 | 01/25/40 | 293,075 | 34,149 |
| Series 407, Class 21 IO | 5.000 | 01/25/39 | 1,205,408 | 142,026 |
| Series 407, Class 7 IO | 5.000 | 03/25/41 | 475,059 | 76,425 |
| Series 407, Class 8 IO | 5.000 | 03/25/41 | 460,100 | 68,762 |
| Government National Mortgage Association | ||||
| Series 2010-78, Class AI IO | 4.500 | 04/20/39 | 1,517,471 | 143,963 |
| Asset Backed Securities 5.03% (3.37% of Total Investments) | $8,668,841 | |||
|
| ||||
| (Cost $8,836,707) | ||||
| Asset Backed Securities 5.03% | 8,668,841 | |||
|
| ||||
| Ameriquest Mortgage Securities, Inc. | ||||
| Series 2005-R1, Class M1 (P) | 0.726 | 03/25/35 | 455,000 | 392,422 |
| Bravo Mortgage Asset Trust | ||||
| Series 2006-1A, Class A2 (P) (S) | 0.516 | 07/25/36 | 597,771 | 470,559 |
| Carrington Mortgage Loan Trust | ||||
| Series 2005-OPT2, Class M2 (P) | 0.726 | 05/25/35 | 435,000 | 386,901 |
| Citigroup Mortgage Loan Trust | ||||
| Series 2006-WFH3, Class A3 (P) | 0.426 | 10/25/36 | 634,442 | 575,995 |
| 12 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Asset Backed Securities (continued) | ||||
|
| ||||
| ContiMortgage Home Equity Loan Trust | ||||
| Series 1995-2, Class A-5 | 8.100 | 08/15/25 | $36,819 | $36,638 |
| FUEL Trust | ||||
| Series 2011-1 (S) (Z) | 4.207 | 04/15/16 | 630,000 | 647,156 |
| Home Equity Asset Trust | ||||
| Series 2005-5, Class M1 (P) | 0.756 | 11/25/35 | 450,000 | 350,952 |
| Series 2007-3, Class 2A2 (P) | 0.456 | 08/25/37 | 1,760,000 | 1,244,116 |
| Leaf Capital Funding SPE A LLC | ||||
| Series 2010-A, Class C (P) (S) | 7.281 | 12/15/20 | 163,167 | 163,167 |
| Series 2010-A, Class D (P) (S) | 10.281 | 12/15/20 | 122,201 | 122,201 |
| Series 2010-A, Class E1 (P) (S) | 14.781 | 12/15/20 | 142,280 | 142,280 |
| Leaf II Receivables Funding LLC (S) | ||||
| Series 2011-1, Class A | 1.700 | 12/20/18 | 284,328 | 279,125 |
| Master Asset Backed Securities Trust | ||||
| Series 2007-HE2, Class A2 (P) | 0.976 | 08/25/37 | 575,294 | 502,127 |
| Merrill Lynch Mortgage Investors, Inc. | ||||
| Series 2005-HE2, Class A2C (P) | 0.646 | 09/25/36 | 670,000 | 582,295 |
| Series 2005-WMC1, Class M1 (P) | 1.026 | 09/25/35 | 270,193 | 250,347 |
| New Century Home Equity Loan Trust | ||||
| Series 2005-3, Class M1 (P) | 0.756 | 07/25/35 | 305,000 | 261,884 |
| Novastar Home Equity Loan | ||||
| Series 2004-4, Class M3 (P) | 1.356 | 03/25/35 | 645,000 | 576,419 |
| Park Place Securities, Inc. | ||||
| Series 2004-WHQ2, Class M2 (P) (Z) | 0.906 | 02/25/35 | 915,000 | 739,227 |
| Residential Asset Securities Corp. | ||||
| Series 2005-KS4, Class M1 (P) | 0.686 | 05/25/35 | 341,202 | 304,538 |
| Sonic Capital LLC | ||||
| Series 2011-1A, Class A2 (S) (Z) | 5.438 | 05/20/41 | 607,600 | 640,492 |
| Shares | Value | |||
| Common Stocks 2.62% (1.75% of Total Investments) | $4,503,403 | |||
|
| ||||
| (Cost $4,532,738) | ||||
| Consumer Discretionary 0.03% | 57,930 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.03% | ||||
| Greektown Superholdings, Inc. (I) | 768 | 57,930 | ||
| Consumer Staples 0.44% | 747,700 | |||
|
| ||||
| Tobacco 0.44% | ||||
| Philip Morris International, Inc. (Z) | 10,000 | 747,700 | ||
| Energy 0.33% | 570,880 | |||
|
| ||||
| Oil, Gas & Consumable Fuels 0.33% | ||||
| Royal Dutch Shell PLC, ADR (Z) | 8,000 | 570,880 | ||
| Health Care 0.71% | 1,219,865 | |||
|
| ||||
| Pharmaceuticals 0.71% | ||||
| Eli Lilly & Company (Z) | 17,000 | 675,580 | ||
| Johnson & Johnson (Z) | 8,258 | 544,285 | ||
| Information Technology 0.40% | 686,920 | |||
|
| ||||
| Semiconductors & Semiconductor Equipment 0.40% | ||||
| Intel Corp. (Z) | 26,000 | 686,920 | ||
| 13 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Shares | Value | |||
| Materials 0.45% | 767,188 | |||
|
| ||||
| Containers & Packaging 0.45% | ||||
| Rock-Tenn Company, Class A (Z) | 12,402 | 767,188 | ||
| Telecommunication Services 0.26% | 452,920 | |||
|
| ||||
| Diversified Telecommunication Services 0.26% | ||||
| Telefonica SA, ADR (Z) | 26,000 | 452,920 | ||
| Shares | Value | |||
| Preferred Securities 3.14% (b) (2.10% of Total Investments) | $5,402,913 | |||
|
| ||||
| (Cost $5,725,494) | ||||
| Consumer Discretionary 0.66% | 1,130,771 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.66% | ||||
| Greektown Superholdings, Inc., Series A (I) | 14,991 | 1,130,771 | ||
| Consumer Staples 0.65% | 1,112,891 | |||
|
| ||||
| Food & Staples Retailing 0.65% | ||||
| Ocean Spray Cranberries, Inc., Series A, 6.250% (Z) | 12,500 | 1,112,891 | ||
| Financials 1.83% | 3,159,251 | |||
|
| ||||
| Consumer Finance 0.15% | ||||
| Ally Financial, Inc., 7.300% (Z) | 11,815 | 267,728 | ||
| Diversified Financial Services 0.27% | ||||
| Citigroup Capital XIII (7.875% to 10-30-15, then 3 month LIBOR + 6.370%) | 3,900 | 105,066 | ||
| GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + 5.785%) (Z) | 16,350 | 362,807 | ||
| Real Estate Investment Trusts 1.41% | ||||
| Apartment Investment & Management Company, Series T, 8.000% | ||||
| (Z) | 55,000 | 1,405,250 | ||
| Public Storage, Inc., Depositary Shares, Series W, 6.500% (Z) | 40,000 | 1,018,400 | ||
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Escrow Certificates 0.00% (0.00% of Total Investments) | $5,206 | |||
|
| ||||
| (Cost $0) | ||||
| Materials 0.00% | 5,206 | |||
|
| ||||
| Smurfit-Stone Container Corp. (I) | 8.000 | 03/15/17 | 245,000 | 5,206 |
| Short-Term Investments 0.29% (0.20% of Total Investments) | $500,000 | |||
|
| ||||
| (Cost $500,000) | ||||
| Par value | Value | |||
| Repurchase Agreement 0.29% | 500,000 | |||
|
| ||||
| Repurchase Agreement with State Street Corp. dated 1-31-12 at | ||||
| 0.010% to be repurchased at $500,000 on 2-1-12, collateralized by | ||||
| $515,000 Federal Home Loan Mortgage Corp., 1.000% due 3-8-17 | ||||
| (valued at $513,713, including interest) | $500,000 | 500,000 | ||
| 14 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
| Total investments (Cost $253,013,513)† 149.19% | $256,939,304 |
|
| |
| Other assets and liabilities, net (49.19%) | ($84,717,640) |
|
| |
| Total net assets 100.00% | $172,221,664 |
|
| |
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 Payment-in-kind
PO Principal-Only Security - (Principal Tranche of Stripped Security). Rate shown is the annualized yield on date of purchase.
REIT Real Estate Investment Trust
(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.
(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 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 $42,420,045 or 24.63% of the Fund's net assets as of 1-31-12.
(Z) A portion of this security is segregated as collateral pursuant to the Committed Facility Agreement. Total collateral value at 1-31-12 was $188,159,117.
† At 1-31-12, the aggregate cost of investment securities for federal income tax purposes was $253,658,650. Net unrealized appreciation aggregated $3,280,654, of which $14,733,047 related to appreciated investment securities and $11,452,393 related to depreciated investment securities.
| 15 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
Notes to the Schedule 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. 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 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, 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.
The following is a summary of the values by input classification of the Fund’s investments as of January 31, 2012, by major security category or type:
| Level 2 | Level 3 | |||
| Total Market | Significant | Significant | ||
| Value at | Level 1 Quoted | Observable | Unobservable | |
| 1-31-12 | Price | Inputs | Inputs | |
|
| ||||
| Corporate Bonds | $140,967,407 | — | $140,591,544 | $375,863 |
| Convertible Bonds | 346,580 | — | 346,580 | — |
| Municipal Bonds | 540,864 | — | 540,864 | — |
| Term Loans | 1,103,102 | — | 1,103,102 | — |
| Capital Preferred Securities | 4,969,438 | — | 4,969,438 | — |
| U.S. Government & Agency Obligations | 66,054,358 | — | 66,054,358 | — |
| Foreign Government Obligations | 378,530 | — | 378,530 | — |
| Collateralized Mortgage Obligations | 23,503,868 | — | 23,428,685 | 75,183 |
| Asset Backed Securities | 8,668,841 | — | 8,241,193 | 427,648 |
| Common Stocks | 4,503,403 | $4,445,473 | — | 57,930 |
| Preferred Securities | 5,402,913 | 3,159,251 | 1,112,891 | 1,130,771 |
| Short-Term Investments | 500,000 | — | 500,000 | — |
|
| ||||
| Total Investments in Securities | $256,939,304 | 7,604,724 | $247,267,185 | $2,067,395 |
| Other Financial Instruments | ||||
| Futures | ($129,205) | ($129,205) | — | — |
| Interest Rate Swaps | ($684,970) | — | ($684,970) | — |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. During the period ended January 31, 2012, there were no significant transfers into or out of Level 1, Level 2 or Level 3.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. Transfers into or out of Level 3 represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.
| COLLATERALIZED | ASSET | |||||
| CORPORATE | MORTGAGE | BACKED | COMMON | PREFEREED | ||
| BONDS | OBLIGATIONS | SECURITIES | STOCKS | SECURITIES | TOTAL | |
|
| ||||||
| Balance as of 10-31-11 | $344,203 | $125,276 | $214,000 | $56,075 | $1,094,555 | $1,834,109 |
| Realized gain (loss) | — | — | — | — | — | — |
| Change in unrealized appreciation (depreciation) | 31,660 | (3,457) | — | 1,855 | 36,216 | 66,274 |
| Purchases | — | — | 213,648 | — | — | 213,648 |
| Sales | — | (3,088) | — | — | — | (3,088) |
| Transfers into Level 3 | — | — | — | — | — | — |
| Transfers out of Level 3 | — | (43,548) | — | — | — | (43,548) |
| Balance as of 1-31-12 | $375,863 | $75,183 | $427,648 | $57,930 | $1,130,771 | $2,067,395 |
| Change in unrealized at period end* | $31,660 | ($3,457) | — | $1,855 | $36,216 | $66,274 |
* Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end.
| 16 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
In order to value the securities, the Fund uses the following valuation techniques. Equity securities, including exchange-traded funds, held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, taking 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. Certain 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. Certain short-term securities are valued at amortized cost. Other portfolio securities and assets, where 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.
Repurchase agreements. The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement, it receives collateral which 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. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline.
Stripped securities. Stripped mortgage-backed securities are financial instruments structured to separate principal and interest cash flows so that one class receives the entire principal from the underlying mortgage 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 mortgage-backed security. If the underlying mortgage 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. 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.
Futures. A futures contract is a contractual agreement to buy or sell a particular commodity, currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in hedged security values and/or interest rates. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.
During the period ended January 31, 2012, the Fund used futures contracts to manage the duration of the portfolio. The following table summarizes the contracts held at January 31, 2012. During the period ended January 31, 2012, the Fund held futures contracts with USD absolute notional values ranging from $13.1 million to $13.4 million as measured at each quarter end.
| Unrealized | ||||||
| Number of | Expiration | Appreciation | ||||
| Open Contracts | Contracts | Position | Date | Value | (Depreciation) | |
|
| ||||||
| U.S. Treasury 30-Year Bond Futures | 10 | Long | Mar 2012 | $1,454,375 | $17,628 | |
| Ultra Long U.S. Treasury Bond Futures | 11 | Long | Mar 2012 | 1,759,656 | 9,078 | |
| U.S. Treasury 10-Year Note Futures | 52 | Short | Mar 2012 | (6,877,000) | (120,397) | |
| U.S. Treasury 5-Year Note Futures | 27 | Short | Mar 2012 | (3,349,266) | (35,514) | |
| ($129,205) | ||||||
| 17 |
John Hancock Income Securities Trust
As of 1-31-12 (Unaudited)
Interest rate swaps. Interest rate swaps represent an agreement between a Fund and 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. Upfront payments made/received by the Fund are amortized/accreted for financial reporting purposes. Swaps are marked-to-market daily based upon values from third party vendors or broker quotations, 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 a Fund.
During the period ended January 31, 2012, the Fund used interest rate swaps in anticipation of rising interest rates. The following table summarizes the interest rate swap contracts held as of January 31, 2012.
| Payments | |||||
| USD Notional | Payments | Received by | Maturity | ||
| Counterparty | Amount | Made by Fund | Fund | Date | Market Value |
|
| |||||
| Morgan Stanley Capital | 3 Month | ||||
| Services | $22,000,000 | 1.442500% | LIBOR (a) | Aug 2016 | ($684,970) |
(a) At 1-31-12, the 3-month LIBOR rate was 0.54235%.
Interest rate swap positions at January 31, 2012 were entered into on August 5, 2011. No interest rate swap position activity occurred during the period ended January 31, 2012.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the Fund at January 31, 2012 by risk category:
| LIABILITY | |||
| DERIVATIVES | |||
| RISK | FINANCIAL INSTRUMENTS LOCATION | ASSET DERIVATIVES FAIR VALUE | FAIR VALUE |
|
| |||
| Interest rate | Futures | $26,706 | ($155,911) |
| contracts | |||
| Interest Rate Swaps | - | (684,970) | |
|
| |||
| Total | $26,706 | ($840,881) | |
For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.
| 18 |
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 | |
| ------------------------------ | ||
| Keith F. Hartstein | ||
| President and Chief Executive Officer | ||
Date: March 26, 2012
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 | |
| ------------------------------- | ||
| Keith F. Hartstein | ||
| President and Chief Executive Officer | ||
| Date: | March 26, 2012 | |
| By: | /s/ Charles A. Rizzo | |
| ------------------------------- | ||
| Charles A. Rizzo | ||
| Chief Financial Officer | ||
| Date: | March 26, 2012 | |