| 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, 2012 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Corporate Bonds 76.0% (51.5% of Total Investments) | $136,618,830 | |||
|
| ||||
| (Cost $126,791,980) | ||||
| Consumer Discretionary 11.2% | 20,132,200 | |||
|
| ||||
| Auto Components 0.7% | ||||
| Allison Transmission, Inc. (S)(Z) | 7.125 | 05/15/19 | $380,000 | 399,475 |
| Exide Technologies (Z) | 8.625 | 02/01/18 | 380,000 | 302,100 |
| Hyva Global BV (S)(Z) | 8.625 | 03/24/16 | 340,000 | 289,850 |
| Visteon Corp. (Z) | 6.750 | 04/15/19 | 220,000 | 213,950 |
| Automobiles 2.1% | ||||
| Ford Motor Credit Company LLC (S) | 4.207 | 04/15/16 | 630,000 | 652,370 |
| Ford Motor Credit Company LLC (Z) | 5.000 | 05/15/18 | 440,000 | 469,119 |
| Ford Motor Credit Company LLC | 8.000 | 12/15/16 | 330,000 | 390,135 |
| Hyundai Capital Services, Inc. (S)(Z) | 4.375 | 07/27/16 | 310,000 | 328,342 |
| Hyundai Capital Services, Inc. (S)(Z) | 6.000 | 05/05/15 | 430,000 | 471,744 |
| Kia Motors Corp. (S)(Z) | 3.625 | 06/14/16 | 315,000 | 327,602 |
| Nissan Motor Acceptance Corp. (S)(Z) | 4.500 | 01/30/15 | 1,000,000 | 1,070,793 |
| Diversified Financial Services 0.1% | ||||
| Rivers Pittsburgh Borrower LP (S) | 9.500 | 06/15/19 | 155,000 | 161,781 |
| Food Products 0.1% | ||||
| Simmons Foods, Inc. (S)(Z) | 10.500 | 11/01/17 | 250,000 | 228,750 |
| Hotels, Restaurants & Leisure 2.9% | ||||
| CCM Merger, Inc. (S)(Z) | 9.125 | 05/01/19 | 380,000 | 385,700 |
| Downstream Development Authority of the Quapaw Tribe of | ||||
| Oklahoma (S)(Z) | 10.500 | 07/01/19 | 275,000 | 286,688 |
| Greektown Superholdings, Inc. | 13.000 | 07/01/15 | 1,713,000 | 1,862,888 |
| Jacobs Entertainment, Inc. (Z) | 9.750 | 06/15/14 | 600,000 | 585,000 |
| Little Traverse Bay Bands of Odawa Indians (S) | 9.000 | 08/31/20 | 319,000 | 290,290 |
| Marina District Finance Company, Inc. | 9.500 | 10/15/15 | 320,000 | 310,800 |
| MGM Resorts International (S)(Z) | 8.625 | 02/01/19 | 340,000 | 359,975 |
| Seminole Indian Tribe of Florida (S)(Z) | 6.535 | 10/01/20 | 650,000 | 673,615 |
| Seminole Indian Tribe of Florida (S)(Z) | 7.750 | 10/01/17 | 325,000 | 355,063 |
| Waterford Gaming LLC (S) | 8.625 | 09/15/14 | 201,821 | 116,028 |
| Household Durables 0.3% | ||||
| American Standard Americas (S)(Z) | 10.750 | 01/15/16 | 165,000 | 147,056 |
| Corp. GEO SAB de CV (S) | 8.875 | 03/27/22 | 410,000 | 426,400 |
| Internet & Catalog Retail 0.4% | ||||
| Expedia, Inc. (Z) | 5.950 | 08/15/20 | 530,000 | 567,815 |
| QVC, Inc. (S) | 5.125 | 07/02/22 | 90,000 | 95,738 |
| Media 3.3% | ||||
| AMC Entertainment, Inc. | 8.750 | 06/01/19 | 140,000 | 151,900 |
| CBS Corp. (Z) | 7.875 | 07/30/30 | 595,000 | 817,873 |
| Cinemark USA, Inc. (Z) | 7.375 | 06/15/21 | 195,000 | 216,450 |
| Grupo Televisa SAB (Z) | 6.625 | 01/15/40 | 310,000 | 398,400 |
| News America, Inc. (Z) | 6.150 | 03/01/37 | 165,000 | 200,634 |
| News America, Inc. (Z) | 6.150 | 02/15/41 | 55,000 | 70,300 |
| News America, Inc. (Z) | 6.400 | 12/15/35 | 150,000 | 188,054 |
| News America, Inc. (Z) | 7.600 | 10/11/15 | 1,000,000 | 1,156,665 |
| News America, Inc. (Z) | 7.750 | 01/20/24 | 1,020,000 | 1,309,459 |
| Nexstar Broadcasting, Inc. | 7.000 | 01/15/14 | 9,000 | 8,933 |
| Nexstar Broadcasting, Inc., PIK (Z) | 7.000 | 01/15/14 | 255,998 | 254,078 |
| Regal Entertainment Group (Z) | 9.125 | 08/15/18 | 100,000 | 112,250 |
| 1 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Consumer Discretionary (continued) | ||||
|
| ||||
| Time Warner Cable, Inc. (Z) | 6.750 | 07/01/18 | $605,000 | $760,950 |
| UBM PLC (S)(Z) | 5.750 | 11/03/20 | 275,000 | 287,346 |
| Multiline Retail 0.3% | ||||
| Macy's Retail Holdings, Inc. (Z) | 7.875 | 08/15/36 | 444,000 | 479,159 |
| Oil, Gas & Consumable Fuels 0.1% | ||||
| Landry's, Inc. (S) | 9.375 | 05/01/20 | 250,000 | 260,938 |
| Specialty Retail 0.2% | ||||
| Hillman Group, Inc. (Z) | 10.875 | 06/01/18 | 305,000 | 324,063 |
| PC Merger Sub, Inc. (S) | 8.875 | 08/01/20 | 40,000 | 41,400 |
| Toys R US, Inc. (S) | 10.375 | 08/15/17 | 85,000 | 85,425 |
| Textiles, Apparel & Luxury Goods 0.7% | ||||
| Burlington Coat Factory Warehouse Corp. (Z) | 10.000 | 02/15/19 | 665,000 | 705,731 |
| Levi Strauss & Company (Z) | 7.625 | 05/15/20 | 500,000 | 533,125 |
| Consumer Staples 2.2% | 4,028,296 | |||
|
| ||||
| Beverages 0.0% | ||||
| Innovation Ventures LLC (S) | 9.500 | 08/15/19 | 65,000 | 64,675 |
| Food & Staples Retailing 0.5% | ||||
| Rite Aid Corp. | 9.250 | 03/15/20 | 720,000 | 727,200 |
| Safeway, Inc. (Z) | 7.250 | 02/01/31 | 225,000 | 232,346 |
| Food Products 0.6% | ||||
| Bunge, Ltd. Finance Corp. (Z) | 8.500 | 06/15/19 | 389,000 | 489,493 |
| Corp. Pesquera Inca SAC (S)(Z) | 9.000 | 02/10/17 | 340,000 | 365,500 |
| Del Monte Corp. (Z) | 7.625 | 02/15/19 | 235,000 | 233,238 |
| Household Products 0.5% | ||||
| Reynolds Group Issuer, Inc. | 9.000 | 04/15/19 | 420,000 | 427,350 |
| Reynolds Group Issuer, Inc. (S) | 9.875 | 08/15/19 | 365,000 | 386,900 |
| YCC Holdings LLC, PIK | 10.250 | 02/15/16 | 85,000 | 86,594 |
| Tobacco 0.6% | ||||
| Alliance One International, Inc. (Z) | 10.000 | 07/15/16 | 1,000,000 | 1,015,000 |
| Energy 8.4% | 15,072,109 | |||
|
| ||||
| Energy Equipment & Services 1.0% | ||||
| Astoria Depositor Corp., Series B (S)(Z) | 8.144 | 05/01/21 | 1,000,000 | 850,000 |
| Offshore Group Investments, Ltd. (S)(Z) | 11.500 | 08/01/15 | 415,000 | 456,500 |
| Trinidad Drilling, Ltd. (S)(Z) | 7.875 | 01/15/19 | 265,000 | 282,888 |
| Weatherford International, Inc. (Z) | 6.800 | 06/15/37 | 115,000 | 133,152 |
| Gas Utilities 0.3% | ||||
| DCP Midstream LLC (S)(Z) | 9.750 | 03/15/19 | 405,000 | 522,092 |
| Oil, Gas & Consumable Fuels 7.1% | ||||
| Afren PLC (S) | 10.250 | 04/08/19 | 240,000 | 255,000 |
| Afren PLC (S)(Z) | 11.500 | 02/01/16 | 400,000 | 435,060 |
| Alpha Natural Resources, Inc. (Z) | 6.000 | 06/01/19 | 125,000 | 108,750 |
| Alpha Natural Resources, Inc. (Z) | 6.250 | 06/01/21 | 270,000 | 233,550 |
| Arch Coal, Inc. | 7.000 | 06/15/19 | 165,000 | 144,375 |
| Arch Coal, Inc. | 7.250 | 06/15/21 | 346,000 | 301,020 |
| BreitBurn Energy Partners LP (S)(Z) | 7.875 | 04/15/22 | 165,000 | 166,650 |
| DTEK Finance BV (S)(Z) | 9.500 | 04/28/15 | 200,000 | 195,300 |
| Energy Transfer Partners LP | 5.200 | 02/01/22 | 135,000 | 149,335 |
| 2 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Energy (continued) | ||||
|
| ||||
| Energy Transfer Partners LP (Z) | 9.700 | 03/15/19 | $425,000 | $552,033 |
| Enterprise Products Operating LLC (7.000% to 6-1-17, then 3 | ||||
| month LIBOR + 2.778%) (Z) | 7.000 | 06/01/67 | 695,000 | 719,325 |
| EV Energy Partners LP (Z) | 8.000 | 04/15/19 | 400,000 | 404,000 |
| Kerr-McGee Corp. (Z) | 6.950 | 07/01/24 | 600,000 | 774,600 |
| Kinder Morgan Energy Partners LP (Z) | 7.750 | 03/15/32 | 195,000 | 251,013 |
| Marathon Petroleum Corp. (Z) | 6.500 | 03/01/41 | 200,000 | 243,812 |
| Newfield Exploration Company (Z) | 5.750 | 01/30/22 | 260,000 | 280,800 |
| NuStar Logistics LP (Z) | 7.900 | 04/15/18 | 845,000 | 928,216 |
| Peabody Energy Corp. (S)(Z) | 6.250 | 11/15/21 | 325,000 | 320,938 |
| Petro-Canada (Z) | 9.250 | 10/15/21 | 1,000,000 | 1,433,611 |
| Petrohawk Energy Corp. (Z) | 6.250 | 06/01/19 | 595,000 | 665,001 |
| Petroleos Mexicanos (S) | 4.875 | 01/24/22 | 275,000 | 310,063 |
| Spectra Energy Capital LLC (Z) | 6.200 | 04/15/18 | 1,000,000 | 1,201,800 |
| Targa Resources Partners LP (S)(Z) | 6.375 | 08/01/22 | 245,000 | 251,125 |
| TransCanada Pipelines, Ltd. (6.350% to 5-15-17, then 3 | ||||
| month LIBOR + 2.210%) (Z) | 6.350 | 05/15/67 | 710,000 | 741,339 |
| Williams Partners LP (Z) | 7.250 | 02/01/17 | 1,463,000 | 1,760,761 |
| Financials 28.6% | 51,343,776 | |||
|
| ||||
| Capital Markets 3.3% | ||||
| Affinion Group Holdings, Inc. | 11.625 | 11/15/15 | 235,000 | 173,900 |
| Jefferies Group, Inc. (Z) | 6.875 | 04/15/21 | 905,000 | 932,150 |
| Jefferies Group, Inc. | 8.500 | 07/15/19 | 165,000 | 181,913 |
| Macquarie Bank, Ltd. (S)(Z) | 6.625 | 04/07/21 | 260,000 | 268,250 |
| Macquarie Group, Ltd. (S)(Z) | 6.000 | 01/14/20 | 340,000 | 348,090 |
| Morgan Stanley (Z) | 5.550 | 04/27/17 | 1,300,000 | 1,341,241 |
| Morgan Stanley (Z) | 5.750 | 01/25/21 | 290,000 | 295,327 |
| Morgan Stanley | 6.375 | 07/24/42 | 405,000 | 407,751 |
| Morgan Stanley (Z) | 7.300 | 05/13/19 | 485,000 | 535,628 |
| The Goldman Sachs Group, Inc. (Z) | 5.250 | 07/27/21 | 300,000 | 316,111 |
| The Goldman Sachs Group, Inc. (Z) | 5.750 | 01/24/22 | 275,000 | 300,699 |
| The Goldman Sachs Group, Inc. (Z) | 6.150 | 04/01/18 | 760,000 | 852,995 |
| Commercial Banks 4.7% | ||||
| Abbey National Treasury Services PLC (Z) | 4.000 | 04/27/16 | 385,000 | 387,359 |
| Banco de Credito del Peru (S) | 4.750 | 03/16/16 | 175,000 | 184,625 |
| Barclays Bank PLC (Z) | 5.140 | 10/14/20 | 1,930,000 | 1,912,470 |
| Barclays Bank PLC (S)(Z) | 6.050 | 12/04/17 | 295,000 | 299,517 |
| Barclays Bank PLC (S)(Z) | 10.179 | 06/12/21 | 260,000 | 309,748 |
| BPCE SA (12.500% to 9-30-19, then 3 month LIBOR + | ||||
| 12.980%) (Q)(S)(Z) | 12.500 | 09/30/19 | 330,000 | 340,672 |
| First Horizon National Corp. (Z) | 5.375 | 12/15/15 | 355,000 | 378,976 |
| ICICI Bank, Ltd. (S)(Z) | 5.750 | 11/16/20 | 475,000 | 480,065 |
| Nordea Bank AB (S) | 3.125 | 03/20/17 | 680,000 | 704,770 |
| Regions Financial Corp. (Z) | 7.750 | 11/10/14 | 1,000,000 | 1,100,000 |
| Santander Holdings USA, Inc. | 4.625 | 04/19/16 | 115,000 | 114,081 |
| Sberbank of Russia (S) | 6.125 | 02/07/22 | 200,000 | 217,400 |
| Svenska Handelsbanken AB | 2.875 | 04/04/17 | 530,000 | 555,618 |
| Synovus Financial Corp. | 7.875 | 02/15/19 | 200,000 | 216,500 |
| VTB Bank OJSC (9.500% to 12-6-22, then 10 Year U.S. | ||||
| Treasury + 8.067%) (Q)(S) | 9.500 | 12/06/22 | 235,000 | 235,000 |
| Wachovia Bank NA (Z) | 5.850 | 02/01/37 | 390,000 | 491,064 |
| Wachovia Corp. | 5.750 | 06/15/17 | 405,000 | 479,816 |
| 3 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Financials (continued) | ||||
|
| ||||
| Consumer Finance 2.0% | ||||
| Capital One Financial Corp. (Z) | 6.150 | 09/01/16 | $730,000 | $819,380 |
| Capital One Financial Corp. (Z) | 6.750 | 09/15/17 | 1,000,000 | 1,211,409 |
| Discover Bank (Z) | 7.000 | 04/15/20 | 270,000 | 315,483 |
| Discover Financial Services (S) | 5.200 | 04/27/22 | 585,000 | 624,747 |
| Nelnet, Inc. (P)(Z) | 3.836 | 09/29/36 | 715,000 | 579,234 |
| Diversified Financial Services 6.5% | ||||
| Bank of America Corp. (Z) | 6.500 | 08/01/16 | 305,000 | 344,401 |
| Bank of America NA | 5.300 | 03/15/17 | 150,000 | 161,141 |
| Bank of America NA (Z) | 6.000 | 10/15/36 | 390,000 | 438,209 |
| Bank of Ceylon (S) | 6.875 | 05/03/17 | 250,000 | 256,875 |
| Citigroup, Inc. (Z) | 5.850 | 12/11/34 | 300,000 | 341,803 |
| Citigroup, Inc. (Z) | 6.125 | 11/21/17 | 1,935,000 | 2,210,722 |
| General Electric Capital Corp. (Z) | 4.375 | 09/16/20 | 365,000 | 403,801 |
| General Electric Capital Corp. (Z) | 5.875 | 01/14/38 | 160,000 | 194,960 |
| General Electric Capital Corp. (Z) | 6.000 | 08/07/19 | 335,000 | 404,090 |
| General Electric Capital Corp. (7.125% until 06/15/2022, then | ||||
| 3 month LIBOR + 5.296%) (Q)(Z) | 7.125 | 06/15/22 | 600,000 | 649,194 |
| International Lease Finance Corp. (S)(Z) | 7.125 | 09/01/18 | 290,000 | 328,063 |
| JPMorgan Chase & Company | 6.000 | 01/15/18 | 1,000,000 | 1,183,935 |
| JPMorgan Chase & Company (7.900% to 4-30-18, then 3 | ||||
| month LIBOR + 3.470%) (Q)(Z) | 7.900 | 04/30/18 | 655,000 | 722,832 |
| Merrill Lynch & Company, Inc. (Z) | 6.875 | 04/25/18 | 1,000,000 | 1,154,588 |
| Merrill Lynch & Company, Inc. (Z) | 7.750 | 05/14/38 | 310,000 | 380,489 |
| Nationstar Mortgage LLC (S) | 9.625 | 05/01/19 | 75,000 | 79,875 |
| Rabobank Nederland NV | 3.375 | 01/19/17 | 275,000 | 289,964 |
| SPL Logistics Escrow LLC (S) | 8.875 | 08/01/20 | 215,000 | 219,300 |
| The Bear Stearns Companies LLC | 7.250 | 02/01/18 | 1,000,000 | 1,237,171 |
| USB Realty Corp. (P)(Q)(S)(Z) | 1.602 | 01/15/17 | 800,000 | 670,128 |
| Insurance 6.2% | ||||
| Aflac, Inc. (Z) | 8.500 | 05/15/19 | 385,000 | 510,555 |
| American International Group, Inc. (Z) | 3.800 | 03/22/17 | 235,000 | 244,304 |
| American International Group, Inc. | 4.875 | 06/01/22 | 235,000 | 250,457 |
| American International Group, Inc. | 8.250 | 08/15/18 | 230,000 | 283,447 |
| Aon Corp. (Z) | 8.205 | 01/01/27 | 345,000 | 406,471 |
| AXA SA (6.379% to 12-14-36, then 3 month LIBOR + | ||||
| 2.256%) (Q)(S) | 6.379 | 12/14/36 | 175,000 | 142,188 |
| CNA Financial Corp. (Z) | 6.500 | 08/15/16 | 720,000 | 818,248 |
| CNA Financial Corp. (Z) | 7.250 | 11/15/23 | 540,000 | 639,335 |
| CNO Financial Group, Inc. (S)(Z) | 9.000 | 01/15/18 | 375,000 | 403,125 |
| 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 | 613,725 |
| Hartford Financial Services Group, Inc. | 5.125 | 04/15/22 | 175,000 | 186,396 |
| Hartford Financial Services Group, Inc. | 6.000 | 01/15/19 | 193,000 | 211,010 |
| Hartford Financial Services Group, Inc. (Z) | 6.625 | 03/30/40 | 225,000 | 246,630 |
| Liberty Mutual Group, Inc. (S)(Z) | 4.950 | 05/01/22 | 163,000 | 167,094 |
| Liberty Mutual Group, Inc. (S)(Z) | 6.500 | 05/01/42 | 230,000 | 247,383 |
| Liberty Mutual Group, Inc. (S)(Z) | 7.800 | 03/15/37 | 705,000 | 734,963 |
| Lincoln National Corp. (Z) | 8.750 | 07/01/19 | 535,000 | 689,862 |
| Lincoln National Corp. (6.050% until 4-20-17, then 3 month | ||||
| LIBOR + 2.040%) (Z) | 6.050 | 04/20/67 | 535,000 | 516,275 |
| Teachers Insurance & Annuity Association of America (S)(Z) | 6.850 | 12/16/39 | 605,000 | 832,940 |
| The Chubb Corp. (6.375% until 4-15-17, then 3 month LIBOR | ||||
| + 2.250%) (Z) | 6.375 | 03/29/67 | 315,000 | 329,175 |
| 4 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Financials (continued) | ||||
|
| ||||
| The Hanover Insurance Group, Inc. (Z) | 6.375 | 06/15/21 | $150,000 | $165,679 |
| Unum Group (Z) | 7.125 | 09/30/16 | 395,000 | 460,064 |
| UnumProvident Finance Company PLC (S)(Z) | 6.850 | 11/15/15 | 605,000 | 677,480 |
| W.R. Berkley Corp. (Z) | 5.600 | 05/15/15 | 365,000 | 394,508 |
| Willis Group Holdings PLC (Z) | 5.750 | 03/15/21 | 350,000 | 392,196 |
| Willis North America, Inc. (Z) | 7.000 | 09/29/19 | 495,000 | 584,031 |
| Real Estate Investment Trusts 5.2% | ||||
| Boston Properties LP | 3.700 | 11/15/18 | 195,000 | 208,020 |
| Boston Properties LP | 3.850 | 02/01/23 | 160,000 | 168,655 |
| Brandywine Operating Partnership LP (Z) | 7.500 | 05/15/15 | 345,000 | 387,219 |
| CommonWealth REIT (Z) | 6.650 | 01/15/18 | 480,000 | 524,170 |
| Cubesmart LP | 4.800 | 07/15/22 | 280,000 | 296,101 |
| DDR Corp. (Z) | 7.500 | 04/01/17 | 880,000 | 1,012,914 |
| Goodman Funding Pty, Ltd. (S)(Z) | 6.375 | 04/15/21 | 645,000 | 684,642 |
| Health Care REIT, Inc. | 4.950 | 01/15/21 | 190,000 | 208,020 |
| Health Care REIT, Inc. (Z) | 6.125 | 04/15/20 | 700,000 | 816,567 |
| Health Care REIT, Inc. (Z) | 6.200 | 06/01/16 | 505,000 | 570,986 |
| Healthcare Realty Trust, Inc. (Z) | 6.500 | 01/17/17 | 540,000 | 606,500 |
| MPT Operating Partnership LP (Z) | 6.375 | 02/15/22 | 320,000 | 331,200 |
| MPT Operating Partnership LP | 6.875 | 05/01/21 | 230,000 | 244,375 |
| ProLogis LP (Z) | 4.500 | 08/15/17 | 55,000 | 58,984 |
| ProLogis LP (Z) | 6.250 | 03/15/17 | 475,000 | 542,372 |
| Ventas Realty LP | 4.000 | 04/30/19 | 330,000 | 351,797 |
| Ventas Realty LP (Z) | 4.750 | 06/01/21 | 670,000 | 735,967 |
| Vornado Realty LP (Z) | 4.250 | 04/01/15 | 405,000 | 429,141 |
| WEA Finance LLC (S)(Z) | 6.750 | 09/02/19 | 290,000 | 346,117 |
| Weyerhaeuser Company (Z) | 7.375 | 03/15/32 | 690,000 | 811,408 |
| 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 | 241,800 |
| Realogy Corp. (S)(Z) | 7.875 | 02/15/19 | 215,000 | 217,150 |
| Thrifts & Mortgage Finance 0.5% | ||||
| Nationstar Mortgage LLC (S) | 9.625 | 05/01/19 | 220,000 | 235,400 |
| Nationstar Mortgage LLC (Z) | 10.875 | 04/01/15 | 540,000 | 583,200 |
| Health Care 1.8% | 3,173,839 | |||
|
| ||||
| Health Care Equipment & Supplies 0.1% | ||||
| Alere, Inc. | 8.625 | 10/01/18 | 185,000 | 189,625 |
| Health Care Providers & Services 0.9% | ||||
| BioScrip, Inc. (Z) | 10.250 | 10/01/15 | 285,000 | 309,938 |
| Community Health Systems, Inc. | 7.125 | 07/15/20 | 140,000 | 146,650 |
| HCA, Inc. (Z) | 7.500 | 02/15/22 | 380,000 | 426,550 |
| Medco Health Solutions, Inc. (Z) | 7.125 | 03/15/18 | 545,000 | 686,365 |
| Pharmaceuticals 0.8% | ||||
| Catalent Pharma Solutions, Inc. (Z) | 9.500 | 04/15/15 | 421,756 | 431,773 |
| Hospira, Inc. (Z) | 6.050 | 03/30/17 | 485,000 | 549,044 |
| Valeant Pharmaceuticals International, Inc. (S)(Z) | 6.750 | 10/01/17 | 95,000 | 101,175 |
| Valeant Pharmaceuticals International, Inc. (S)(Z) | 6.875 | 12/01/18 | 315,000 | 332,719 |
| Industrials 7.8% | 14,109,058 | |||
|
| ||||
| Aerospace & Defense 1.6% | ||||
| Bombardier, Inc. (S)(Z) | 7.750 | 03/15/20 | 240,000 | 269,700 |
| 5 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Industrials (continued) | ||||
|
| ||||
| Ducommun, Inc. (Z) | 9.750 | 07/15/18 | $70,000 | $72,450 |
| Embraer Overseas, Ltd. (Z) | 6.375 | 01/15/20 | 380,000 | 428,450 |
| Huntington Ingalls Industries, Inc. (Z) | 7.125 | 03/15/21 | 360,000 | 386,550 |
| Kratos Defense & Security Solutions, Inc. (Z) | 10.000 | 06/01/17 | 230,000 | 247,250 |
| Textron Financial Corp. (6.000% to 2-15-17, then 3 month | ||||
| LIBOR + 1.735%) (S)(Z) | 6.000 | 02/15/67 | 750,000 | 592,500 |
| Textron, Inc. (Z) | 5.600 | 12/01/17 | 505,000 | 560,230 |
| Textron, Inc. (Z) | 7.250 | 10/01/19 | 270,000 | 321,649 |
| Airlines 3.6% | ||||
| America West Airlines 2000-1 Pass Through Trust (Z) | 8.057 | 07/02/20 | 173,084 | 183,469 |
| American Airlines 2011-1 Class B Pass Through Trust (S) | 7.000 | 01/31/18 | 579,597 | 581,046 |
| Continental Airlines 1997-4 Class A Pass Through Trust | 6.900 | 01/02/18 | 308,732 | 329,571 |
| Continental Airlines 1998-1 Class A Pass Through Trust (Z) | 6.648 | 09/15/17 | 169,168 | 178,472 |
| Continental Airlines 1999-1 Class A Pass Through Trust (Z) | 6.545 | 02/02/19 | 199,151 | 215,083 |
| Continental Airlines 2000-2 Class B Pass Through Trust (Z) | 8.307 | 04/02/18 | 140,561 | 144,609 |
| Continental Airlines 2007-1 Class A Pass Through Trust (Z) | 5.983 | 04/19/22 | 515,281 | 559,080 |
| Continental Airlines 2010-1 Class A Pass Through Trust | 4.750 | 01/12/21 | 147,923 | 155,319 |
| Continental Airlines 2012-1 Class B Pass Through Trust (Z) | 6.250 | 04/11/20 | 240,000 | 244,800 |
| Delta Air Lines 2002-1 Class G-1 Pass Through Trust (Z) | 6.718 | 01/02/23 | 671,474 | 725,191 |
| Delta Air Lines 2007-1 Class A Pass Through Trust (Z) | 6.821 | 08/10/22 | 685,293 | 739,294 |
| Delta Air Lines 2010-1 Class A Pass Through Trust (Z) | 6.200 | 07/02/18 | 191,712 | 207,049 |
| Delta Air Lines 2011-1 Class A Pass Through Trust (Z) | 5.300 | 04/15/19 | 349,093 | 373,529 |
| Northwest Airlines 2002-1 Class G-2 Pass Through Trust | 6.264 | 11/20/21 | 136,861 | 141,308 |
| Northwest Airlines 2007-1 Class A Pass Through Trust (Z) | 7.027 | 11/01/19 | 400,353 | 429,378 |
| UAL 2009-1 Pass Through Trust | 10.400 | 11/01/16 | 141,968 | 162,029 |
| UAL 2009-2A Pass Through Trust (Z) | 9.750 | 01/15/17 | 362,786 | 415,390 |
| United Airlines 2007-1 Class C Pass Through Trust (P) | 2.984 | 07/02/14 | 583,794 | 563,361 |
| US Airways 2012-1 Class A Pass Through Trust | ||||
| Series 2012-1A, Class PTT | 5.900 | 10/01/24 | 175,000 | 182,000 |
| Building Products 0.8% | ||||
| Masco Corp. (Z) | 7.125 | 03/15/20 | 285,000 | 318,636 |
| Voto-Votorantim Overseas Trading Operations NV (S)(Z) | 6.625 | 09/25/19 | 450,000 | 500,625 |
| Voto-Votorantim, Ltd. (S)(Z) | 6.750 | 04/05/21 | 490,000 | 550,025 |
| Commercial Services & Supplies 0.3% | ||||
| Garda World Security Corp. (S) | 9.750 | 03/15/17 | 100,000 | 105,375 |
| Steelcase, Inc. (Z) | 6.375 | 02/15/21 | 500,000 | 537,902 |
| Construction & Engineering 0.2% | ||||
| Tutor Perini Corp. (Z) | 7.625 | 11/01/18 | 335,000 | 346,306 |
| Electrical Equipment 0.1% | ||||
| Coleman Cable, Inc. (Z) | 9.000 | 02/15/18 | 205,000 | 216,531 |
| Industrial Conglomerates 0.3% | ||||
| Odebrecht Finance, Ltd. (S)(Z) | 6.000 | 04/05/23 | 350,000 | 378,875 |
| Odebrecht Finance, Ltd. (Q)(S) | 7.500 | 09/14/15 | 200,000 | 212,000 |
| Marine 0.2% | ||||
| Navios South American Logistics, Inc. | 9.250 | 04/15/19 | 315,000 | 288,225 |
| Road & Rail 0.3% | ||||
| Avis Budget Car Rental LLC (S)(Z) | 8.250 | 01/15/19 | 125,000 | 134,219 |
| Penske Truck Leasing Company LP (S)(Z) | 3.750 | 05/11/17 | 460,000 | 466,594 |
| Trading Companies & Distributors 0.4% | ||||
| Air Lease Corp. (S)(Z) | 5.625 | 04/01/17 | 110,000 | 109,588 |
| Aircastle, Ltd. | 6.750 | 04/15/17 | 160,000 | 168,000 |
| 6 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Industrials (continued) | ||||
|
| ||||
| Aircastle, Ltd. | 7.625 | 04/15/20 | $160,000 | $171,200 |
| HD Supply, Inc. (S)(Z) | 8.125 | 04/15/19 | 180,000 | 196,200 |
| Information Technology 0.5% | 907,370 | |||
|
| ||||
| Computers & Peripherals 0.2% | ||||
| Hewlett-Packard Company (Z) | 4.375 | 09/15/21 | 310,000 | 319,370 |
| IT Services 0.3% | ||||
| Brightstar Corp. (S)(Z) | 9.500 | 12/01/16 | 560,000 | 588,000 |
| Materials 6.2% | 11,170,353 | |||
|
| ||||
| Chemicals 1.2% | ||||
| American Pacific Corp. (Z) | 9.000 | 02/01/15 | 245,000 | 247,144 |
| Braskem America Finance Company (S)(Z) | 7.125 | 07/22/41 | 425,000 | 434,563 |
| Braskem Finance, Ltd. (S)(Z) | 7.000 | 05/07/20 | 515,000 | 580,663 |
| CF Industries, Inc. (Z) | 6.875 | 05/01/18 | 170,000 | 205,700 |
| CF Industries, Inc. | 7.125 | 05/01/20 | 230,000 | 287,500 |
| Incitec Pivot Finance LLC (S)(Z) | 6.000 | 12/10/19 | 345,000 | 384,467 |
| Polymer Group, Inc. (Z) | 7.750 | 02/01/19 | 95,000 | 102,125 |
| Construction Materials 0.4% | ||||
| Magnesita Finance, Ltd. (Q)(S)(Z) | 8.625 | 04/05/17 | 420,000 | 422,394 |
| Severstal Columbus LLC (Z) | 10.250 | 02/15/18 | 100,000 | 101,000 |
| Vulcan Materials Company | 7.500 | 06/15/21 | 130,000 | 143,813 |
| Containers & Packaging 0.9% | ||||
| ARD Finance SA, PIK (S) | 11.125 | 06/01/18 | 260,000 | 236,600 |
| Consolidated Container Company LLC (S) | 10.125 | 07/15/20 | 240,000 | 250,200 |
| Pretium Packaging LLC (Z) | 11.500 | 04/01/16 | 165,000 | 168,300 |
| Temple-Inland, Inc. (Z) | 6.625 | 01/15/18 | 750,000 | 894,431 |
| Metals & Mining 2.5% | ||||
| Alcoa, Inc. (Z) | 5.400 | 04/15/21 | 255,000 | 261,634 |
| Allegheny Technologies, Inc. | 5.950 | 01/15/21 | 140,000 | 156,998 |
| Allegheny Technologies, Inc. (Z) | 9.375 | 06/01/19 | 280,000 | 363,741 |
| ArcelorMittal (Z) | 9.850 | 06/01/19 | 370,000 | 444,972 |
| Commercial Metals Company (Z) | 7.350 | 08/15/18 | 310,000 | 322,788 |
| FMG Resources August 2006 Pty, Ltd. (S)(Z) | 8.250 | 11/01/19 | 170,000 | 178,925 |
| JMC Steel Group (S) | 8.250 | 03/15/18 | 185,000 | 185,463 |
| Metinvest BV (S)(Z) | 8.750 | 02/14/18 | 435,000 | 403,463 |
| Mongolian Mining Corp. (S) | 8.875 | 03/29/17 | 500,000 | 503,750 |
| Rain CII Carbon LLC (S)(Z) | 8.000 | 12/01/18 | 555,000 | 567,488 |
| SunCoke Energy, Inc. (Z) | 7.625 | 08/01/19 | 259,000 | 257,381 |
| Teck Resources, Ltd. | 10.750 | 05/15/19 | 119,000 | 143,990 |
| Thompson Creek Metals Company, Inc. (Z) | 7.375 | 06/01/18 | 395,000 | 308,100 |
| Vale Overseas, Ltd. (Z) | 6.875 | 11/10/39 | 320,000 | 389,350 |
| Paper & Forest Products 1.2% | ||||
| Georgia-Pacific LLC (S) | 5.400 | 11/01/20 | 485,000 | 572,335 |
| Georgia-Pacific LLC | 7.250 | 06/01/28 | 165,000 | 207,469 |
| International Paper Company (Z) | 9.375 | 05/15/19 | 385,000 | 521,992 |
| Westvaco Corp. (Z) | 7.950 | 02/15/31 | 770,000 | 921,614 |
| Telecommunication Services 3.6% | 6,388,342 | |||
|
| ||||
| Diversified Telecommunication Services 3.1% | ||||
| American Tower Corp. | 4.700 | 03/15/22 | 400,000 | 418,056 |
| BellSouth Telecommunications, Inc. (Z) | 6.300 | 12/15/15 | 455,769 | 481,692 |
| 7 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Telecommunication Services (continued) | ||||
|
| ||||
| CenturyLink, Inc. (Z) | 5.800 | 03/15/22 | $480,000 | $509,907 |
| CenturyLink, Inc. (Z) | 6.450 | 06/15/21 | 305,000 | 336,892 |
| CenturyLink, Inc. (Z) | 7.600 | 09/15/39 | 305,000 | 313,725 |
| Crown Castle Towers LLC (S)(Z) | 4.883 | 08/15/20 | 760,000 | 835,979 |
| GTP Acquisition Partners I LLC (S)(Z) | 4.347 | 06/15/16 | 650,000 | 679,682 |
| GTP Acquisition Partners I LLC (S)(Z) | 7.628 | 06/15/16 | 325,000 | 339,171 |
| GTP Towers Issuer LLC (S) | 8.112 | 02/15/15 | 885,000 | 930,177 |
| PAETEC Holding Corp. (Z) | 9.875 | 12/01/18 | 369,000 | 416,048 |
| Telecom Italia Capital SA (Z) | 7.200 | 07/18/36 | 365,000 | 313,900 |
| Wireless Telecommunication Services 0.5% | ||||
| Nextel Communications, Inc. (Z) | 7.375 | 08/01/15 | 415,000 | 418,113 |
| SBA Tower Trust (S) | 2.933 | 12/15/17 | 395,000 | 395,000 |
| Utilities 5.7% | 10,293,487 | |||
|
| ||||
| Electric Utilities 3.3% | ||||
| Beaver Valley II Funding | 9.000 | 06/01/17 | 244,000 | 251,681 |
| BVPS II Funding Corp. | 8.890 | 06/01/17 | 441,000 | 489,082 |
| Commonwealth Edison Company (Z) | 5.800 | 03/15/18 | 525,000 | 640,113 |
| Exelon Corp. (Z) | 4.900 | 06/15/15 | 985,000 | 1,077,445 |
| FPL Energy National Wind LLC (S)(Z) | 5.608 | 03/10/24 | 222,404 | 222,818 |
| Oncor Electric Delivery Company LLC (Z) | 5.000 | 09/30/17 | 820,000 | 923,218 |
| PNM Resources, Inc. (Z) | 9.250 | 05/15/15 | 705,000 | 805,463 |
| PNPP II Funding Corp. | 9.120 | 05/30/16 | 220,000 | 235,519 |
| 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) | 6.250 | 02/01/22 | 275,000 | 294,082 |
| TXU Corp. (Z) | 7.460 | 01/01/15 | 86,182 | 81,187 |
| W3A Funding Corp. (Z) | 8.090 | 01/02/17 | 337,407 | 343,342 |
| Independent Power Producers & Energy Traders 1.2% | ||||
| Allegheny Energy Supply Company LLC (S)(Z) | 5.750 | 10/15/19 | 460,000 | 504,593 |
| DPL, Inc. (S)(Z) | 7.250 | 10/15/21 | 570,000 | 648,375 |
| Exelon Generation Company LLC (Z) | 6.250 | 10/01/39 | 175,000 | 204,282 |
| NRG Energy, Inc. (Z) | 7.625 | 01/15/18 | 385,000 | 410,025 |
| NRG Energy, Inc. (Z) | 8.250 | 09/01/20 | 355,000 | 382,513 |
| Multi-Utilities 1.0% | ||||
| Integrys Energy Group, Inc. (6.110% to 12-1-16, then 3 | ||||
| month LIBOR + 2.120%) (Z) | 6.110 | 12/01/66 | 650,000 | 672,750 |
| MidAmerican Energy Holdings Company (Z) | 8.480 | 09/15/28 | 550,000 | 819,091 |
| Wisconsin Energy Corp. (6.250% to 5-15-17, then 3 month | ||||
| LIBOR + 2.113%) (Z) | 6.250 | 05/15/67 | 410,000 | 432,550 |
| Water Utilities 0.2% | ||||
| Midwest Generation LLC, Series B (Z) | 8.560 | 01/02/16 | 330,956 | 318,545 |
| Convertible Bonds 0.2% (0.1% of Total Investments) | $349,990 | |||
|
| ||||
| (Cost $267,530) | ||||
| Consumer Discretionary 0.2% | 349,990 | |||
|
| ||||
| Media 0.2% | ||||
| XM Satellite Radio, Inc. (S)(Z) | 7.000 | 12/01/14 | 248,000 | 349,990 |
| 8 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Municipal Bonds 0.4% (0.2% of Total Investments) | $647,698 | |||
|
| ||||
| (Cost $553,029) | ||||
| California 0.2% | 305,300 | |||
|
| ||||
| State of California (Z) | ||||
| General Obligation Bond | 7.600 | 11/01/40 | $225,000 | 305,300 |
| Illinois 0.2% | 342,398 | |||
|
| ||||
| State of Illinois | ||||
| General Obligation Bond | 5.100 | 06/01/33 | 355,000 | 342,398 |
| Term Loans (M) 0.6% (0.4% of Total Investments) | $1,078,063 | |||
|
| ||||
| (Cost $1,080,515) | ||||
| Consumer Discretionary 0.5% | 857,953 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.5% | ||||
| CCM Merger, Inc. | 6.000 | 03/01/17 | 182,215 | 180,484 |
| Kalispel Tribal Economic Authority | 7.500 | 02/24/17 | 561,620 | 547,579 |
| Landry's, Inc. | 6.500 | 04/24/18 | 129,675 | 129,890 |
| Financials 0.1% | 220,110 | |||
|
| ||||
| Real Estate Investment Trusts 0.1% | ||||
| iStar Financial, Inc. | 7.000 | 06/30/14 | 220,000 | 220,110 |
| Capital Preferred Securities (a) 2.7% (1.8% of Total Investments) | $4,828,688 | |||
|
| ||||
| (Cost $4,808,499) | ||||
| Financials 2.7% | 4,828,688 | |||
|
| ||||
| Capital Markets 0.8% | ||||
| State Street Capital Trust III (P)(Q)(Z) | 5.458 | 09/15/12 | 715,000 | 718,861 |
| State Street Capital Trust IV (P)(Z) | 1.468 | 06/15/37 | 935,000 | 697,375 |
| Commercial Banks 1.5% | ||||
| 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 | 823,969 |
| PNC Financial Services Group, Inc. (6.750% to 8-1-21, then | ||||
| 3 month LIBOR + 3.678%) (Q) | 6.750 | 08/01/21 | 215,000 | 232,916 |
| 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 | 851,892 |
| Regions Financing Trust II (6.625% to 5-15-27, then 3 month | ||||
| LIBOR + 1.290%) (Z) | 6.625 | 05/15/47 | 260,000 | 253,500 |
| Sovereign Capital Trust VI (Z) | 7.908 | 06/13/36 | 480,000 | 487,200 |
| Insurance 0.4% | ||||
| MetLife Capital Trust X (9.250% to 4-8-38 then 3 month | ||||
| LIBOR + 5.540%) (S)(Z) | 9.250 | 04/08/68 | 315,000 | 392,175 |
| 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 | 370,800 |
| 9 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| U.S. Government & Agency Obligations 35.3% (23.9% of Total Investments) | $63,431,054 | |||
|
| ||||
| (Cost $60,997,560) | ||||
| U.S. Government 2.2% | 4,012,312 | |||
|
| ||||
| U.S. Treasury Bonds | ||||
| Bond (Z) | 3.125 | 02/15/42 | $2,325,000 | 2,599,278 |
| U.S. Treasury Notes | ||||
| Note | 1.750 | 05/15/22 | 745,000 | 763,509 |
| U.S. Treasury Strips, PO | 2.907 | 11/15/30 | 1,020,000 | 649,525 |
| U.S. Government Agency 33.1% | 59,418,742 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| 30 Yr Pass Thru | 1.750 | 05/30/19 | 1,440,000 | 1,492,066 |
| 30 Yr Pass Thru | 5.000 | 03/01/41 | 5,658,778 | 6,357,810 |
| 30 Yr Pass Thru | 6.500 | 06/01/37 | 30,071 | 33,803 |
| 30 Yr Pass Thru | 6.500 | 11/01/37 | 173,349 | 194,754 |
| 30 Yr Pass Thru | 6.500 | 12/01/37 | 74,976 | 84,234 |
| 30 Yr Pass Thru (Z) | 6.500 | 04/01/39 | 1,721,872 | 1,932,338 |
| Federal National Mortgage Association | ||||
| 30 Yr Pass Thru | 4.000 | 10/01/40 | 694,137 | 760,749 |
| 30 Yr Pass Thru | 4.000 | 09/01/41 | 2,804,150 | 3,090,773 |
| 30 Yr Pass Thru (Z) | 4.000 | 09/01/41 | 4,733,226 | 5,143,071 |
| 30 Yr Pass Thru | 4.000 | 09/01/41 | 5,220,599 | 5,591,074 |
| 30 Yr Pass Thru (Z) | 4.000 | 10/01/41 | 6,045,111 | 6,606,333 |
| 30 Yr Pass Thru | 4.000 | 02/01/42 | 3,842,677 | 4,124,975 |
| 30 Yr Pass Thru (Z) | 4.500 | 10/01/40 | 3,176,016 | 3,519,494 |
| 30 Yr Pass Thru | 5.000 | 02/01/41 | 2,971,502 | 3,246,759 |
| 30 Yr Pass Thru | 5.000 | 04/01/41 | 895,486 | 1,008,379 |
| 30 Yr Pass Thru | 5.500 | 02/01/36 | 1,577,748 | 1,733,753 |
| 30 Yr Pass Thru | 5.500 | 12/01/36 | 2,217,526 | 2,432,634 |
| 30 Yr Pass Thru | 5.500 | 06/01/37 | 580,514 | 635,012 |
| 30 Yr Pass Thru (Z) | 5.500 | 06/01/38 | 1,207,980 | 1,321,383 |
| 30 Yr Pass Thru (Z) | 5.500 | 10/01/39 | 3,221,479 | 3,523,907 |
| 30 Yr Pass Thru | 5.500 | 08/01/40 | 344,720 | 378,805 |
| 30 Yr Pass Thru | 6.000 | 05/01/37 | 1,651,235 | 1,826,199 |
| 30 Yr Pass Thru (Z) | 6.500 | 07/01/36 | 595,285 | 670,815 |
| 30 Yr Pass Thru (Z) | 6.500 | 01/01/39 | 2,872,415 | 3,234,173 |
| 30 Yr Pass Thru (Z) | 6.500 | 03/01/39 | 185,383 | 208,962 |
| 30 Yr Pass Thru | 6.500 | 06/01/39 | 236,548 | 266,487 |
| Foreign Government Obligations 0.2% (0.1% of Total Investments) | $396,103 | |||
|
| ||||
| (Cost $368,615) | ||||
| South Korea 0.2% | 396,103 | |||
|
| ||||
| Korea Development Bank (Z) | 4.000 | 09/09/16 | 370,000 | 396,103 |
| Collateralized Mortgage Obligations 17.6% (11.9% of Total Investments) | $31,664,108 | |||
|
| ||||
| (Cost $31,107,865) | ||||
| Commercial & Residential 14.1% | 25,280,408 | |||
|
| ||||
| American Home Mortgage Assets LLC | ||||
| Series 2006-6, Class XP IO | 2.261 | 12/25/46 | 7,265,890 | 499,785 |
| 10 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Commercial & Residential (continued) | ||||
|
| ||||
| American Tower Trust | ||||
| Series 2007-1A, Class D (S) | 5.957 | 04/15/37 | $865,000 | $906,026 |
| Americold LLC Trust | ||||
| Series 2010-ARTA, Class D (S) | 7.443 | 01/14/29 | 605,000 | 689,050 |
| Banc of America Commercial Mortgage, Inc. | ||||
| Series 2006-2, Class AM (P) | 5.762 | 05/10/45 | 595,000 | 650,767 |
| Series 2006-4, Class AM | 5.675 | 07/10/46 | 845,000 | 917,638 |
| Series 2006-3, Class A4 (P) | 5.889 | 07/10/44 | 785,000 | 892,877 |
| Bear Stearns Adjustable Rate Mortgage Trust | ||||
| Series 2005-1, Class B2 (P) | 3.327 | 03/25/35 | 766,974 | 84,358 |
| Bear Stearns Alt-A Trust | ||||
| Series 2004-12, Class 1A1 (P) | 0.596 | 01/25/35 | 672,500 | 582,430 |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||
| Series 2005-CD1, Class C (P) | 5.219 | 07/15/44 | 295,000 | 248,500 |
| Commercial Mortgage Pass Through Certificates | ||||
| Series 2012-LC4, Class B (P) | 4.934 | 12/10/44 | 360,000 | 386,025 |
| Series 2012-LC4, Class C (P) | 5.649 | 12/10/44 | 285,000 | 294,295 |
| Countrywide Alternative Loan Trust | ||||
| Series 2006-OA12, Class X IO | 2.693 | 09/20/46 | 9,745,452 | 575,054 |
| Extended Stay America Trust | ||||
| Series 2010-ESHA, Class B (S) | 4.221 | 11/05/27 | 530,000 | 536,746 |
| Fontainebleau Miami Beach Trust | ||||
| Series 2012-FBLU, Class C (S) | 4.270 | 05/05/27 | 315,000 | 323,059 |
| Series 2012-FBLU, Class D (S) | 5.007 | 05/05/27 | 465,000 | 483,097 |
| GMAC Mortgage Loan Trust | ||||
| Series 2004-AR2, Class 3A (P) | 3.320 | 08/19/34 | 777,004 | 723,618 |
| Greenwich Capital Commercial Funding Corp. | ||||
| Series 2006-GG7, Class AM (P) | 5.874 | 07/10/38 | 670,000 | 712,976 |
| GSR Mortgage Loan Trust | ||||
| Series 2006-4F, Class 6A1 | 6.500 | 05/25/36 | 2,533,508 | 1,819,100 |
| Series 2004-9, Class B1 (P) | 3.272 | 08/25/34 | 788,167 | 332,856 |
| Harborview Mortgage Loan Trust | ||||
| Series 2004-11, Class X1 IO | 2.060 | 01/19/35 | 4,261,627 | 322,873 |
| Series 2005-11, Class X IO | 2.024 | 08/19/45 | 2,752,039 | 116,411 |
| Series 2005-2, Class IX IO | 2.211 | 05/19/35 | 10,817,445 | 628,532 |
| Series 2005-8, Class 1X IO | 2.173 | 09/19/35 | 4,299,562 | 239,269 |
| Series 2007-3, Class ES IO | 0.350 | 05/19/47 | 11,102,890 | 69,393 |
| Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 13,469,730 | 84,186 |
| Series 2007-6, Class ES IO (S) | 0.342 | 08/19/37 | 9,302,731 | 58,142 |
| IndyMac Index Mortgage Loan Trust | ||||
| Series 2005-AR18, Class 1X IO | 2.034 | 10/25/36 | 9,295,473 | 600,116 |
| Series 2005-AR18, Class 2X IO | 1.691 | 10/25/36 | 8,698,580 | 405,528 |
| JP Morgan Chase Commercial Mortgage Securities Corp. | ||||
| Series 2006-LDP7, Class AM (P) | 5.871 | 04/15/45 | 735,000 | 803,910 |
| Series 2012-HSBC Class XA, IO (S) | 1.582 | 07/05/32 | 3,620,000 | 419,203 |
| JPMorgan Chase Commercial Mortgage Securities Corp. | ||||
| Series 2005-PDP5, Class AM (P) | 5.237 | 12/15/44 | 1,155,000 | 1,281,849 |
| LB-UBS Commercial Mortgage Trust | ||||
| Series 2007-C1, Class AM | 5.455 | 02/15/40 | 850,000 | 895,929 |
| MLCC Mortgage Investors, Inc. | ||||
| Series 2006-3, Class 2A1 (P) | 2.579 | 10/25/36 | 658,664 | 618,214 |
| Series 2007-3, Class M1 (P) | 4.107 | 09/25/37 | 269,764 | 139,935 |
| Series 2007-3, Class M2 (P) | 4.107 | 09/25/37 | 101,506 | 9,992 |
| Series 2007-3, Class M3 (P) | 4.107 | 09/25/37 | 62,525 | 1,997 |
| 11 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Commercial & Residential (continued) | ||||
|
| ||||
| Morgan Stanley Capital I | ||||
| Series 2006-HQ10, Class AM | 5.360 | 11/12/41 | $660,000 | $712,073 |
| Series 2008-HQ8, Class AM (P) | 5.468 | 03/12/44 | 1,020,000 | 1,103,585 |
| Thornburg Mortgage Securities Trust | ||||
| Series 2004-1, Class II2A (P) | 1.907 | 03/25/44 | 757,449 | 728,257 |
| UBS Commercial Mortgage Trust | ||||
| Series 2012-C1, Class B | 4.822 | 05/10/45 | 405,000 | 435,379 |
| Series 2012-C1, Class C (P)(S) | 5.536 | 05/10/45 | 270,000 | 279,372 |
| UBS-Barclays Commercial Mortgage Trust | ||||
| Series 2012-C2, Class XA, IO (S) | 1.994 | 05/10/63 | 5,015,000 | 530,010 |
| WaMu Mortgage Pass Through Certificates | ||||
| Series 2004-AR13, Class X IO | 1.434 | 11/25/34 | 10,996,947 | 538,158 |
| Series 2005-AR1, Class X IO | 1.458 | 01/25/45 | 16,185,566 | 795,877 |
| Series 2005-AR2, Class X IO | 1.565 | 01/25/45 | 12,343,145 | 692,013 |
| Series 2005-AR6, Class X IO | 1.600 | 04/25/45 | 7,554,142 | 429,421 |
| Series 2005-AR8, Class X IO | 1.578 | 07/25/45 | 13,601,067 | 682,527 |
| U.S. Government Agency 3.5% | 6,383,700 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| Series 3747, Class HI IO | 4.500 | 07/15/37 | 5,903,540 | 623,293 |
| Series 3794, Class PI IO | 4.500 | 02/15/38 | 935,716 | 103,405 |
| Series 3830, Class NI IO | 4.500 | 01/15/36 | 4,181,594 | 487,763 |
| Series K017, Class X1 IO | 1.459 | 12/25/21 | 2,827,001 | 286,632 |
| Series K018, Class X1 IO | 1.469 | 01/25/22 | 3,779,205 | 385,018 |
| Series K707, Class X1 IO | 1.560 | 12/25/18 | 2,467,730 | 204,516 |
| Series K708, Class X1 IO | 1.513 | 01/25/19 | 5,813,427 | 478,352 |
| Series K709, Class X1 IO | 1.547 | 03/25/19 | 3,405,000 | 288,393 |
| Series K710, Class X1 IO | 1.916 | 05/25/19 | 2,580,000 | 256,326 |
| Federal National Mortgage Association | ||||
| Series 2009-47, Class EI IO | 5.000 | 08/25/19 | 683,753 | 60,452 |
| Series 2010-68, Class CI IO | 5.000 | 11/25/38 | 1,213,752 | 153,079 |
| Series 2012-98, Class JP | 3.500 | 03/25/42 | 1,215,000 | 1,333,463 |
| Series 398, Class C3 IO | 4.500 | 05/25/39 | 937,539 | 106,326 |
| Series 401, Class C2 IO | 4.500 | 06/25/39 | 607,729 | 63,666 |
| Series 402, Class 3 IO | 4.000 | 11/25/39 | 894,630 | 111,518 |
| Series 402, Class 4 IO | 4.000 | 10/25/39 | 1,519,270 | 184,465 |
| Series 402, Class 7 IO | 4.500 | 11/25/39 | 1,307,247 | 174,222 |
| Series 402, Class 8 IO | 4.500 | 11/25/39 | 1,450,264 | 180,204 |
| Series 407, Class 15 IO | 5.000 | 01/25/40 | 1,239,982 | 176,630 |
| Series 407, Class 16 IO | 5.000 | 01/25/40 | 272,691 | 35,689 |
| Series 407, Class 17 IO | 5.000 | 01/25/40 | 252,726 | 32,167 |
| Series 407, Class 21 IO | 5.000 | 01/25/39 | 972,603 | 93,745 |
| Series 407, Class 7 IO | 5.000 | 03/25/41 | 435,682 | 83,661 |
| Series 407, Class 8 IO | 5.000 | 03/25/41 | 430,624 | 70,338 |
| Series 407, Class C6 IO | 5.500 | 01/25/40 | 1,938,314 | 310,981 |
| Government National Mortgage Association | ||||
| Series 2010-78, Class AI IO | 4.500 | 04/20/39 | 1,297,538 | 99,396 |
| Asset Backed Securities 7.1% (4.8% of Total Investments) | $12,706,054 | |||
|
| ||||
| (Cost $12,531,189) | ||||
| Asset Backed Securities 7.1% | 12,706,054 | |||
|
| ||||
| Aegis Asset Backed Securities Trust | ||||
| Series 2005-4, Class M1 (P) | 0.696 | 10/25/35 | 750,000 | 472,547 |
| 12 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Asset Backed Securities (continued) | ||||
|
| ||||
| Ameriquest Mortgage Securities, Inc. | ||||
| Series 2005-R1, Class M1 (P) | 0.696 | 03/25/35 | $455,000 | $435,100 |
| Argent Securities, Inc. | ||||
| Series 2006-M2, Class A2C (P) | 0.396 | 09/25/36 | 1,428,912 | 432,000 |
| Asset Backed Funding Certificates | ||||
| Series 2005-AQ1 Class A4 | 5.010 | 06/25/35 | 328,544 | 333,144 |
| Asset Backed Securities Corp. Home Equity | ||||
| Series 2006-HE1, Class A3 (P) | 0.446 | 01/25/36 | 644,733 | 529,376 |
| Bravo Mortgage Asset Trust | ||||
| Series 2006-1A, Class A2 (P)(S) | 0.486 | 07/25/36 | 572,072 | 458,135 |
| Carrington Mortgage Loan Trust | ||||
| Series 2005-OPT2, Class M2 (P) | 0.696 | 05/25/35 | 435,000 | 394,454 |
| Citicorp Residential Mortgage Securities, Inc. | ||||
| Series 2007-2, Class A6 | 6.265 | 06/25/37 | 366,677 | 356,614 |
| Citigroup Mortgage Loan Trust | ||||
| Series 2006-WFH3, Class A3 (P) | 0.396 | 10/25/36 | 531,421 | 520,876 |
| Contimortgage Home Equity Loan Trust | ||||
| Series 1995-2, Class A-5 | 8.100 | 08/15/25 | 35,431 | 35,142 |
| Dominos Pizza Master Issuer LLC | ||||
| Series 2012-1A, Class A2 (S) | 5.216 | 01/25/42 | 1,106,638 | 1,176,512 |
| Home Equity Asset Trust | ||||
| Series 2003-1, Class M1 (P) | 1.746 | 06/25/33 | 1,110,466 | 896,539 |
| Series 2005-5, Class M1 (P) | 0.726 | 11/25/35 | 450,000 | 392,065 |
| Leaf Capital Funding SPE A LLC | ||||
| Series 2010-A, Class C (P) (S) | 7.248 | 12/15/20 | 631,619 | 631,619 |
| Series 2010-A, Class D (P) (S) | 10.248 | 12/15/20 | 471,144 | 471,144 |
| Series 2010-A, Class E1 (P) (S) | 14.748 | 12/15/20 | 513,183 | 513,183 |
| Leaf II Receivables Funding LLC | ||||
| Series 2011-1, Class A (S) | 1.700 | 12/20/18 | 170,867 | 168,851 |
| Mastr Asset Backed Securities Trust | ||||
| Series 2007-HE2, Class A2 (P) | 0.946 | 08/25/37 | 613,935 | 554,810 |
| Series 2006-HE4, Class A2 (P) | 0.356 | 11/25/36 | 1,856,761 | 654,178 |
| Merrill Lynch Mortgage Investors, Inc. | ||||
| Series 2005-WMC1, Class M1 (P) | 0.996 | 09/25/35 | 256,559 | 217,356 |
| New Century Home Equity Loan Trust | ||||
| Series 2005-3, Class M1 (P) | 0.726 | 07/25/35 | 305,000 | 288,212 |
| Novastar Home Equity Loan | ||||
| Series 2004-4, Class M3 (P) | 1.326 | 03/25/35 | 645,000 | 614,753 |
| Park Place Securities, Inc. | ||||
| Series 2004-WHQ2, Class M2 (P) | 0.876 | 02/25/35 | 915,000 | 849,567 |
| People's Choice Home Loan Securities Trust | ||||
| Series 2005-1, Class M3 (P) | 0.826 | 01/25/35 | 480,000 | 423,787 |
| Sonic Capital LLC | ||||
| Series 2011-1A, Class A2 (S) | 5.438 | 05/20/41 | 598,300 | 635,849 |
| Soundview Home Equity Loan Trust | ||||
| Series 2006-OPT2, Class A3 (P) | 0.426 | 05/25/36 | 310,966 | 250,241 |
| 13 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Shares | Value | |
| Common Stocks 2.9% (2.0% of Total Investments) | $5,183,075 | |
|
| ||
| (Cost $5,169,483) | ||
| Consumer Discretionary 0.0% | 39,805 | |
|
| ||
| Hotels, Restaurants & Leisure 0.0% | ||
| Greektown Superholdings, Inc. (I) | 768 | 39,805 |
| Consumer Staples 0.5% | 914,400 | |
|
| ||
| Tobacco 0.5% | ||
| Philip Morris International, Inc. (Z) | 10,000 | 914,400 |
| Energy 0.3% | 545,600 | |
|
| ||
| Oil, Gas & Consumable Fuels 0.3% | ||
| Royal Dutch Shell PLC, ADR | 8,000 | 545,600 |
| Health Care 0.7% | 1,320,129 | |
|
| ||
| Pharmaceuticals 0.7% | ||
| Eli Lilly & Company (Z) | 17,000 | 748,510 |
| Johnson & Johnson (Z) | 8,258 | 571,619 |
| Information Technology 0.4% | 668,200 | |
|
| ||
| Semiconductors & Semiconductor Equipment 0.4% | ||
| Intel Corp. (Z) | 26,000 | 668,200 |
| Materials 0.4% | 722,044 | |
|
| ||
| Containers & Packaging 0.4% | ||
| Rock-Tenn Company, Class A (Z) | 12,402 | 722,044 |
| Telecommunication Services 0.6% | 972,897 | |
|
| ||
| Diversified Telecommunication Services 0.6% | ||
| Oi SA, ADR | 41,092 | 610,216 |
| Oi SA, Series C, ADR | 12,025 | 67,581 |
| Telefonica SA, ADR (Z) | 26,000 | 295,100 |
| Shares | Value | |
| Preferred Securities (b) 3.0% (2.0% of Total Investments) | $5,314,653 | |
|
| ||
| (Cost $5,532,783) | ||
| Consumer Discretionary 0.6% | 1,086,098 | |
|
| ||
| Hotels, Restaurants & Leisure 0.6% | ||
| Greektown Superholdings, Inc., Series A (I) | 14,991 | 1,086,098 |
| Consumer Staples 0.7% | 1,157,423 | |
|
| ||
| Food & Staples Retailing 0.7% | ||
| Ocean Spray Cranberries, Inc., Series A, 6.250% (S) | 12,500 | 1,157,423 |
| Financials 1.5% | 2,749,040 | |
|
| ||
| Commercial Banks 0.5% | ||
| PNC Financial Services Group, Inc. (6.125% to 05/01/2022, then 3 | ||
| month LIBOR + 4.067%) | 19,375 | 529,131 |
| 14 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
| Shares | Value | |||
| Financials (continued) | ||||
|
| ||||
| U.S. Bancorp (6.000% to 04/15/2017, then 3 month LIBOR + | ||||
| 4.861%) (Z) | 15,475 | 424,015 | ||
| Consumer Finance 0.1% | ||||
| Ally Financial, Inc., 7.300% (Z) | 11,815 | 284,860 | ||
| Diversified Financial Services 0.3% | ||||
| Citigroup Capital XIII (7.875% to 10-30-15, then 3 month LIBOR + 6.370%) (Z) | 3,900 | 106,821 | ||
| GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + 5.785%) (Z) | 16,350 | 398,613 | ||
| Real Estate Investment Trusts 0.6% | ||||
| Public Storage, Inc., Depositary Shares, Series W, 6.500% | 40,000 | 1,005,600 | ||
| Industrials 0.2% | 322,092 | |||
|
| ||||
| Aerospace & Defense 0.2% | ||||
| United Technologies Corp., 7.500% | 6,106 | 322,092 | ||
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Escrow Certificates 0.0% (0.0% of Total Investments) | $5,206 | |||
|
| ||||
| (Cost $0) | ||||
| Materials 0.0% | 5,206 | |||
|
| ||||
| Smurfit-Stone Container Corp. (I) | 8.000 | 03/15/17 | $245,000 | 5,206 |
| Short-Term Investments 1.7% (1.2% of Total Investments) | $3,100,000 | |||
|
| ||||
| (Cost $3,100,000) | ||||
| Par value | Value | |||
| Repurchase Agreement 1.7% | 3,100,000 | |||
|
| ||||
| Repurchase Agreement with State Street Corp. dated 7-31-12 at | ||||
| 0.010% to be repurchased at $3,100,001 on 8-1-12, collateralized | ||||
| by $3,155,000 Federal National Mortgage Association, 0.650% due | ||||
| 8-28-14 (valued at $3,162,951, including interest) | 3,100,000 | 3,100,000 | ||
| Total investments (Cost $252,309,048)† 147.7% | $265,323,522 | |||
|
| ||||
| Other assets and liabilities, net (47.7%) | ($85,632,211) | |||
|
| ||||
| Total net assets 100.0% | $179,691,311 | |||
|
| ||||
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
| 15 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
USGG U.S. Generic Government Yield
(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 $49,513,217 or 27.6% of the Fund's net assets as of 7-31-12.
(Z) All or a portion of this security is segregated as collateral pursuant to the Committed Facility Agreement. Total collateral value at 7-31-12 was $172,293,002.
† At 7-31-12, the aggregate cost of investment securities for federal income tax purposes was $253,087,953. Net unrealized appreciation aggregated $12,235,569, of which $18,750,353 related to appreciated investment securities and $6,514,784 related to depreciated investment securities.
| 16 |
John Hancock Income Securities Trust
As of 7-31-12 (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. 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 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. Swaps are marked-to-market daily based upon values from third party vendors, which may include a registered commodities exchange, or broker quotations. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. 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.
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. 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, 2012, by major security category or type:
| Level 2 | Level 3 | ||||||
| Total Market | Significant | Significant | |||||
| Value at | Level 1 Quoted | Observable | Unobservable | ||||
| 7-31-12 | Price | Inputs | Inputs | ||||
| Corporate Bonds | $136,618,830 | — | $135,970,712 | $648,118 | |||
| Convertible Bonds | 349,990 | — | 349,990 | — | |||
| Municipal Bonds | 647,698 | — | 647,698 | — | |||
| Term Loans | 1,078,063 | — | 1,078,063 | — | |||
| Capital Preferred Securities | 4,828,688 | — | 4,828,688 | — | |||
| U.S. Government & Agency Obligations | 63,431,054 | — | 63,431,054 | — | |||
| Foreign Government Obligations | 396,103 | — | 396,103 | — | |||
| Collateralized Mortgage Obligations | 31,664,108 | — | 31,452,387 | 211,721 | |||
| Asset Backed Securities | 12,706,054 | — | 11,090,108 | 1,615,946 | |||
| Common Stocks | 5,183,075 | $5,143,270 | — | 39,805 | |||
| Preferred Securities | 5,314,653 | 2,647,117 | 1,581,438 | 1,086,098 | |||
| Escrow Certificates | 5,206 | — | 5,206 | — | |||
| Short-Term Investments | 3,100,000 | — | 3,100,000 | — | |||
|
| |||||||
| Total Investments in Securities | $265,323,522 | $7,790,387 | $253,931,447 | $3,601,688 | |||
| Other Financial Instruments | |||||||
| Interest Rate Swaps | ($1,229,210) | — | ($1,229,210) | — | |||
| 17 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
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 and in all cases were transferred into or out of Level 2. Securities were transferred into Level 3 because of a lack of observable market data which resulted from an absence of market activity for these securities. Securities were tranferred out of Level 3 since observable market data became available due to increased market activity of these securities.
| Collateralized | ||||||
| Corporate | Mortgage | Asset Backed | Common | Preferred | ||
| 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) | 274 | — | — | — | — | $274 |
| Change in unrealized appreciation (depreciation) | 63,645 | 16,186 | — | (16,270) | (8,457) | $55,104 |
| Purchases | 260,000 | 936 | 1,401,946 | — | — | $1,662,882 |
| Sales | (20,004) | (37,302) | — | — | — | ($57,306) |
| Transfers into Level 3 | — | 150,173 | — | — | — | $150,173 |
| Transfers out of Level 3 | — | (43,548) | — | — | — | ($43,548) |
| Balance as of 7-31-12 | $648,118 | $211,721 | $1,615,946 | $39,805 | $1,086,098 | $3,601,688 |
| Change in unrealized at period end* | $51,273 | $16,186 | — | ($16,270) | ($8,457) | $42,732 |
* Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end.
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 only principal payments 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.
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 the Fund.
| 18 |
John Hancock Income Securities Trust
As of 7-31-12 (Unaudited)
During the period ended July 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 July 31, 2012. During the period ended July 31, 2012, the Fund held interest rate swaps with total USD notional amounts ranging from $22.0 million to $44.0 million as measured at each quarter end.
| USD Notional | Payments Received | Maturity | ||||
| Counterparty | Amount | Payments Made by Fund | by Fund | Date | Market Value | |
|
| ||||||
| Morgan Stanley | ||||||
| Capital Services | $22,000,000 | Fixed 1.442500% | 3 Month LIBOR (a) | Aug 2016 | ($852,856) | |
| Morgan Stanley | ||||||
| Capital Services | 22,000,000 | Fixed 1.09375% | 3 Month LIBOR (a) | May 2017 | (376,354) | |
| ($1,229,210) | ||||||
(a) At 7-31-12, the 3-month LIBOR rate was 0.44260%.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the Fund at July 31, 2012 by risk category:
| Liability | |||
| Asset Derivatives | Derivatives Fair | ||
| Risk | Financial Instruments Location | Fair Value | Value |
|
| |||
| Interest rate contracts | Interest Rate Swaps | - | ($1,229,210) |
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/ Hugh McHaffie |
| ------------------------------ | |
| Hugh McHaffie | |
| President | |
| Date: | September 24, 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/ Hugh McHaffie |
| ------------------------------- | |
| Hugh McHaffie | |
| President | |
| Date: | September 24, 2012 |
| By: | /s/ Charles A. Rizzo |
| ------------------------------- | |
| Charles A. Rizzo | |
| Chief Financial Officer | |
| Date: | September 24, 2012 |