John Hancock Variable Insurance Trust

Transcription

1 John Hancock Variable Insurance Trust Managed Volatility Aggressive Portfolio (formerly Lifestyle Aggressive MVP) Managed Volatility Balanced Portfolio (formerly Lifestyle Balanced MVP) Managed Volatility Conservative Portfolio (formerly Lifestyle Conservative MVP) Managed Volatility Growth Portfolio (formerly Lifestyle Growth MVP) Managed Volatility Moderate Porfolio (formerly Lifestyle Moderate MVP) Annual Report December 31, 2017

2 Annual report table of contents Managers commentary and portfolio performance (See below for each portfolio s page #)... 3 Shareholder expense example... 9 Portfolio of investments (See below for each portfolio s page #) Statements of assets and liabilities Statements of operations Statements of changes in net assets Financial highlights Notes to financial statements Report of independent registered public accounting firm Trustees and officers information For more information Portfolio Managers commentary and portfolio performance Portfolio of investments Managed Volatility Aggressive Portfolio Managed Volatility Growth Portfolio Managed Volatility Balanced Portfolio Portfolio Managers commentary and portfolio performance Portfolio of investments Managed Volatility Moderate Portfolio Managed Volatility Conservative Portfolio

3 Managers commentary and portfolio performance Trust performance In the following pages, we have set forth information regarding the performance of each Managed Volatility Portfolio of John Hancock Variable Insurance Trust (the trust or JHVIT). There are several ways to evaluate a portfolio s historical performance. One can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. With respect to all performance information presented, it is important to understand that past performance does not guarantee future results. Return and principal fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Performance tables The performance tables show two types of total return information: cumulative and average annual total returns. A cumulative total return includes dividend reinvestments and is an expression of a portfolio s total change in share value in percentage terms over a set period of time one, five, and ten years (or since the portfolio s inception if less than the applicable period). An average annual total return takes the portfolio s cumulative total return for a time period greater than one year and shows what would have happened if the portfolio had performed at a constant rate each year. The tables show all cumulative and average annual total returns, net of fees and expenses of the trust, but do not reflect the insurance (separate account) expenses (including a possible contingent deferred sales charge) of the variable annuity and variable life products that invest in the trust. If these were included, performance would be lower. Graph change in value of $10,000 investment and comparative indexes The performance graph for each portfolio shows the change in value of a $10,000 investment over the life or 10-year period of each portfolio, whichever is shorter. Each portfolio s performance is compared with the performance of one or more broad-based security indexes as a benchmark. All performance information includes the reinvestment of dividends and capital gain distributions, as well as the deduction of ongoing management fees and portfolio operating expenses. The benchmarks used for comparison are unmanaged and include reinvestment of dividends and capital gain distributions, if any, but do not reflect any fees or expenses. Portfolios that invest in multiple asset classes are compared with a customized benchmark. This benchmark comprises a set percentage allocation from each of the asset classes in which the portfolio invests. Portfolio managers commentary Finally, we have provided a commentary by the portfolio managers regarding each portfolio s performance during the year ended December 31, The views expressed are those of the portfolio managers as of December 31, 2017, and are subject to change based on market and other conditions. Information about a portfolio s holdings, asset allocation, or country diversification is historical and is no indication of future portfolio composition, which may vary. Information provided in this report should not be considered a recommendation to purchase or sell securities. The portfolios are not insured by the FDIC; are not deposits or other obligations of, or guaranteed by, banks; and are subject to investment risks, including loss of principal amount invested. For a more detailed discussion of the risks associated with the portfolios, see the Trust prospectus. Standard & Poor s, Standard & Poor s 500, and S&P 500 are trademarks of The McGraw-Hill Companies, Inc. Bloomberg Barclays is a registered trademark of Bloomberg LP. The Managed Volatility Portfolios are not sponsored, endorsed, managed, advised, sold, or promoted by any of these companies, and none of these companies makes any representation regarding the advisability of investing in any Managed Volatility Portfolio. 3

4 Managed Volatility Aggressive Portfolio (formerly Lifestyle Aggressive MVP) Subadvisors: John Hancock Asset Management a division of Manulife Asset Management (US) LLC (John Hancock Asset Management) (US)); John Hancock Asset Management a division of Manulife Asset Management (North America) Limited (John Hancock Asset Management (North America)) Portfolio Managers: Robert Boyda, Marcelle Daher, CFA, Jeffrey N. Given, CFA, Luning (Gary) Li, Nathan Thooft, CFA INVESTMENT OBJECTIVE & POLICIES The portfolio s investment objective is to seek longterm growth of capital while seeking to both manage the volatility of return and limit the magnitude c of portfolio losses. The portfolio operates as a fund of funds and primarily invests in equity funds. The portfolio also may use certain risk management techniques to seek to manage the volatility of returns (i.e., standard deviation) and limit the magnitude of portfolio losses. The portfolio s exposure to equity securities (either directly or through investment in underlying funds or derivatives) normally will not exceed 100% of net assets. CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEXES $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 12/07 Managed Volatility Aggressive Portfolio Series I S&P 500 Index Blended Index 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 $22,603 $19,297 $15,131 Sector Weightings* Equity Asset Allocation % of Total U.S. Large Cap 36.9 Large Blend 22.0 International Large Cap 12.4 Emerging Markets 7.8 U.S. Mid Cap 7.5 International Small Cap 5.3 U.S. Small Cap 5.3 Real Estate 1.9 Total Equity Asset Allocation 99.1 Short-term investments and other 0.9 * As a percentage of net assets. PORTFOLIO MANAGERS COMMENTARY Performance For the year ended December 31, c 2017, the JHVIT Managed Volatility Aggressive Portfolio Series I shares returned 22.82% and the benchmark, a blend of 70% Russell 3000 Index and 30% MSCI EAFE Index, returned 22.50%. Environment Equity investors realized steady c gains and minimal declines in 2017, especially from September on. For the first time, the widely followed S&P 500 Index delivered positive results in all 12 months of the calendar year, as measured by total return. Other major indices also did well, although small-capitalization shares notably lagged. Growth stocks were clear winners over value shares. Looking at the S&P 500 Index sectors, information technology was the year s top-performing sector by a wide margin, lifted by standout results from large components such as Apple, Inc., Facebook, Inc., and Alphabet, Inc. (Google). On the negative side, the telecommunication services and energy sectors posted losses. Like their U.S. counterparts, foreign stocks in developed markets posted solid returns in 2017, aided by improving economic and earnings growth, as well as a weaker U.S. dollar. Europe did better than Japan, but both regions delivered healthy double-digit gains. Emerging markets, as a whole, was one of the best-performing equity groups in Reasonably good outlooks for major industrial economies in the group, coupled with a weaker U.S. dollar, aided stocks in these markets. From an asset allocation perspective, underweight positions in mid-cap U.S. equities and global developed bonds, as well as an overweight in emerging markets equity, contributed to returns. Individual contributors to returns included Blue Chip Growth (T. Rowe Price) and Capital Appreciation (Jennison). An underweight position in international developed equity, and overweight positions in smallcap U.S. equity and short-term U.S. fixed income, detracted from returns. Individual holdings that detracted from returns included Emerging Markets Value (DFA) and Small Cap Value (Wellington). Effective October 1, 2016, John Hancock Asset Management (JHAM) assumed oversight of the managed volatility program. This program was introduced in March 2014 and seeks to maintain volatility of the portfolio within a specified range and protect against the risk of a significant equity market decline by adjusting equity exposure in response to changing market conditions (within prescribed limits). Given low levels of market volatility the model maintained the portfolio s equity allocation near its maximum. PERFORMANCE TABLE 1 Average Annual Total Return Cumulative Total Return Period Ending December 31, year 5-year 10-year 5-year 10-year Managed Volatility Aggressive Portfolio Series I 22.82% 8.66% 4.23% 51.49% 51.31% Managed Volatility Aggressive Portfolio Series II 22.56% 8.43% 4.02% 49.92% 48.31% Managed Volatility Aggressive Portfolio Series NAV 22.88% 8.71% 4.28% 51.84% 52.08% S&P 500 Index 2, % 15.79% 8.50% % % Blended Index 3, % 13.44% 6.79% 87.86% 92.97% 1 Performance does not reflect any insurance-related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. 2 The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. 3 The Blended Index is composed of 70% Russell 3000 Index and 30% MSCI EAFE Index. 4 It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns. 4

5 Managed Volatility Growth Portfolio (formerly Lifestyle Growth MVP) Subadvisors: John Hancock Asset Management (US); John Hancock Asset Management (North America) Portfolio Managers: Robert Boyda, Marcelle Daher, CFA, Jeffrey N. Given, CFA, Luning (Gary) Li, Nathan Thooft, CFA INVESTMENT OBJECTIVE & POLICIES The portfolio s investment objective is to seek long-term c growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses. The portfolio operates as a fund of funds and invests in both equity funds and fixed-income funds. The portfolio also may use certain risk management techniques to seek to manage the volatility of returns (i.e., standard deviation) and limit the magnitude of portfolio losses. The portfolio s exposure to equity securities (either directly or through investment in underlying funds or derivatives) normally will not exceed 77% of net assets. CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEXES $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 12/07 Managed Volatility Growth Portfolio Series I S&P 500 Index Bloomberg Barclays U.S. Aggregate Bond Index Blended Index 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 $22,603 $18,336 $15,275 $14,811 Sector Weightings* Equity Asset Allocation % of Total Large Blend 34.0 U.S. Large Cap 18.5 International Large Cap 4.5 Emerging Markets 4.3 U.S. Mid Cap 4.0 U.S. Small Cap 3.1 International Small Cap 1.9 Total Equity Asset Allocation 70.3 Fixed Income Asset Allocation % of Total Intermediate Bond 22.3 Multi-Sector Bond 4.3 Global Bond 1.2 Short-Term Bond 0.4 Total Fixed Income Asset Allocation 28.2 Alternative Asset Allocation % of Total Global Conservative Absolute Return 0.2 Short-term investments and other 1.3 * As a percentage of net assets. PORTFOLIO MANAGERS COMMENTARY Performance For the year ended December 31, c 2017, the JHVIT Managed Volatility Growth Portfolio Series I shares returned 18.59% and the benchmark, a blend of 49% Russell 3000 Index, 30% Bloomberg Barclays U.S. Aggregate Bond Index, and 21% MSCI EAFE Index, returned 16.52%. Environment Equity investors realized steady c gains and minimal declines in 2017, especially from September on. For the first time, the widely followed S&P 500 Index delivered positive results in all 12 months of the calendar year, as measured by total return. Other major indices also did well, although small-capitalization shares notably lagged. Growth stocks were clear winners over value shares. Looking at the S&P 500 Index sectors, information technology was the year s top-performing sector by a wide margin, lifted by standout results from large components such as Apple, Inc., Facebook, Inc., and Alphabet, Inc. (Google). On the negative side, the telecommunication services and energy sectors posted losses. Like their U.S. counterparts, foreign stocks in developed markets posted solid returns in 2017, aided by improving economic and earnings growth, as well as a weaker U.S. dollar. Europe did better than Japan, but both regions delivered healthy double-digit gains. Emerging markets, as a whole, was one of the best-performing equity groups in Reasonably good outlooks for major industrial economies in the group, coupled with a weaker U.S. dollar, aided stocks in these markets. In the bond market, longer-term Treasury yields stabilized in 2017 after surging near the end of However, short-term yields rose, especially from September onward, as investors factored in the likelihood of a third increase in the U.S. Federal Reserve s key interest rate. The two-year Treasury note yield increased from 1.06% at the end of 2016 to 1.89% on the final day of Overall, the environment for high-quality bonds was positive but fairly muted. From an asset allocation perspective, underweight positions in mid-cap U.S. equities and global developed bonds, as well as an overweight in emerging markets equity, contributed positively to returns. Individual contributors to returns included Blue Chip Growth (T. Rowe Price) and Capital Appreciation (Jennison). An underweight position in international developed equity, and overweight positions in small-cap U.S. equity and short-term U.S. fixed income, detracted from returns. Individual holdings that detracted from returns included Emerging Markets Value (DFA) and Small Cap Value (Wellington). Effective October 1, 2016, JHAM assumed oversight of the managed volatility program. This program, implemented using derivatives, was introduced in March 2014 and seeks to maintain volatility of the portfolio within a specified range and protect against the risk of a significant equity market decline by adjusting equity exposure in response to changing market conditions (within prescribed limits). Given low levels of market volatility in 2017, the model maintained an overweight to equity relative to the portfolio s strategic equity percentage. PERFORMANCE TABLE 1 Average Annual Total Return Cumulative Total Return Period Ending December 31, year 5-year 10-year 5-year 10-year Managed Volatility Growth Portfolio Series I 18.59% 7.36% 4.33% 42.64% 52.75% Managed Volatility Growth Portfolio Series II 18.35% 7.14% 4.11% 41.19% 49.62% Managed Volatility Growth Portfolio Series NAV 18.71% 7.42% 4.37% 43.04% 53.45% S&P 500 Index 2, % 15.79% 8.50% % % Bloomberg Barclays U.S. Aggregate Bond Index 3,5 3.54% 2.10% 4.01% 10.95% 48.11% Blended Index 4, % 10.04% 6.25% 61.34% 83.36% 1 Performance does not reflect any insurance-related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. 2 The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. 3 The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues. 4 The Blended Index is composed of 49% Russell 3000 Index, 30% Bloomberg Barclays U.S. Aggregate Bond Index, 21% MSCI EAFE Index. 5 It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns. 5

6 Managed Volatility Balanced Portfolio (formerly Lifestyle Balanced MVP) Subadvisors: John Hancock Asset Management (US); John Hancock Asset Management (North America) Portfolio Managers: Robert Boyda, Marcelle Daher, CFA, Jeffrey N. Given, CFA, Luning (Gary) Li, Nathan Thooft, CFA INVESTMENT OBJECTIVE & POLICIES The portfolio s investment objective is to seek growth c of capital and current income while seeking to both manage the volatility of return and limit the magnitude of portfolio losses. The portfolio operates as a fund of funds and invests in both equity funds and fixed-income funds. The portfolio also may use certain risk management techniques to seek to manage the volatility of returns (i.e., standard deviation) and limit the magnitude of portfolio losses. The portfolio s exposure to equity securities (either directly or through investment in underlying funds or derivatives) normally will not exceed 55% of net assets. CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEXES $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 12/07 Managed Volatility Balanced Portfolio Series I S&P 500 Index Bloomberg Barclays U.S. Aggregate Bond Index Blended Index 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 $22,603 $17,482 $15,538 $14,811 Sector Weightings* Equity Asset Allocation % of Total Large Blend 23.4 U.S. Large Cap 15.5 International Large Cap 2.6 U.S. Mid Cap 2.6 Emerging Markets 2.5 U.S. Small Cap 2.2 International Small Cap 1.1 Total Equity Asset Allocation 49.9 Fixed Income Asset Allocation % of Total Intermediate Bond 38.3 Multi-Sector Bond 7.5 Global Bond 2.1 Short-Term Bond 0.7 Total Fixed Income Asset Allocation 48.6 Alternative Asset Allocation % of Total Global Conservative Absolute Return 0.3 Short-term investments and other 1.2 * As a percentage of net assets. PORTFOLIO MANAGERS COMMENTARY Performance For the year ended December 31, c 2017, the JHVIT Managed Volatility Balanced Portfolio Series I shares returned 14.13% and the benchmark, a blend of 50% Bloomberg Barclays U.S. Aggregate Bond Index, 35% Russell 3000 Index, and 15% MSCI EAFE Index, returned 12.67%. Environment Equity investors realized steady c gains and minimal declines in 2017, especially from September on. For the first time, the widely followed S&P 500 Index delivered positive results in all 12 months of the calendar year, as measured by total return. Other major indices also did well, although small-capitalization shares notably lagged. Growth stocks were clear winners over value shares. Looking at the S&P 500 Index sectors, information technology was the year s top-performing sector by a wide margin, lifted by standout results from large components such as Apple, Inc., Facebook, Inc., and Alphabet, Inc. (Google). On the negative side, the telecommunication services and energy sectors posted losses. Like their U.S. counterparts, foreign stocks in developed markets posted solid returns in 2017, aided by improving economic and earnings growth, as well as a weaker U.S. dollar. Europe did better than Japan, but both regions delivered healthy double-digit gains. Emerging markets, as a whole, was one of the best-performing equity groups in Reasonably good outlooks for major industrial economies in the group, coupled with a weaker U.S. dollar, aided stocks in these markets. In the bond market, longer-term Treasury yields stabilized in 2017 after surging near the end of However, short-term yields rose, especially from September onward, as investors factored in the likelihood of a third increase in the U.S. Federal Reserve s key interest rate. The two-year Treasury note yield increased from 1.06% at the end of 2016 to 1.89% on the final day of Overall, the environment for high-quality bonds was positive but fairly muted. From an asset allocation perspective, underweight positions in mid-cap U.S. equities and global developed bonds, as well as an overweight in emerging markets equity, contributed to returns. Individual contributors to returns included Blue Chip Growth (T. Rowe Price) and Capital Appreciation (Jennison). An underweight position in international developed equity, and overweight positions in smallcap U.S. equity and short-term U.S. fixed income, detracted from returns. Individual holdings that detracted from returns included Emerging Markets Value (DFA) and Small Cap Value (Wellington). Effective October 1, 2016, JHAM assumed oversight of the managed volatility program. This program, implemented using derivatives, was introduced in March 2014 and seeks to maintain volatility of the portfolio within a specified range and protect against the risk of a significant equity market decline by adjusting equity exposure in response to changing market conditions (within prescribed limits). Given low levels of market volatility in 2017, the model maintained an overweight to equity relative to the portfolio s strategic equity percentage. PERFORMANCE TABLE 1 Average Annual Total Return Cumulative Total Return Period Ending December 31, year 5-year 10-year 5-year 10-year Managed Volatility Balanced Portfolio Series I 14.13% 6.58% 4.51% 37.51% 55.38% Managed Volatility Balanced Portfolio Series II 13.82% 6.35% 4.29% 36.08% 52.21% Managed Volatility Balanced Portfolio Series NAV 14.15% 6.63% 4.56% 37.86% 56.16% S&P 500 Index 2, % 15.79% 8.50% % % Bloomberg Barclays U.S. Aggregate Bond Index 3,5 3.54% 2.10% 4.01% 10.95% 48.11% Blended Index 4, % 7.77% 5.74% 45.38% 74.82% 1 Performance does not reflect any insurance-related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. 2 The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. 3 The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues. 4 The Blended Index is composed of 50% Bloomberg Barclays U.S. Aggregate Bond Index, 35% Russell 3000 Index, 15% MSCI EAFE Index. 5 It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns. 6

7 Managed Volatility Moderate Portfolio (formerly Lifestyle Moderate MVP) Subadvisors: John Hancock Asset Management (US); John Hancock Asset Management (North America) Portfolio Managers: Robert Boyda, Marcelle Daher, CFA, Jeffrey N. Given, CFA, Luning (Gary) Li, Nathan Thooft, CFA INVESTMENT OBJECTIVE & POLICIES The portfolio s investment objective is to seek current c income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses. The portfolio operates as a fund of funds and invests in both equity funds and fixed-income funds. The portfolio also may use certain risk management techniques to seek to manage the volatility of returns (i.e., standard deviation) and limit the magnitude of portfolio losses. The portfolio s exposure to equity securities (either directly or through investment in underlying funds or derivatives) normally will not exceed 44% of net assets. CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEXES $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 12/07 Managed Volatility Moderate Portfolio Series I S&P 500 Index Bloomberg Barclays U.S. Aggregate Bond Index Blended Index 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 $22,603 $17,001 $16,298 $14,811 Sector Weightings* Equity Asset Allocation % of Total Large Blend 19.4 U.S. Large Cap 13.1 U.S. Mid Cap 1.9 U.S. Small Cap 1.8 Emerging Markets 1.7 International Large Cap 1.5 International Small Cap 0.6 Total Equity Asset Allocation 40.0 Fixed Income Asset Allocation % of Total Intermediate Bond 46.1 Multi-Sector Bond 9.1 Global Bond 2.4 Short-Term Bond 0.8 Total Fixed Income Asset Allocation 58.4 Alternative Asset Allocation % of Total Global Conservative Absolute Return 0.4 Short-term investments and other 1.2 * As a percentage of net assets. PORTFOLIO MANAGERS COMMENTARY Performance For the year ended December 31, c 2017, the JHVIT Managed Volatility Moderate Portfolio Series I shares returned 11.88% and the benchmark, a blend of 60% Bloomberg Barclays U.S. Aggregate Bond Index, 28% Russell 3000 Index, and 12% MSCI EAFE Index, returned 10.79%. Environment Equity investors realized steady c gains and minimal declines in 2017, especially from September on. For the first time, the widely followed S&P 500 Index delivered positive results in all 12 months of the calendar year, as measured by total return. Other major indices also did well, although small-capitalization shares notably lagged. Growth stocks were clear winners over value shares. Looking at the S&P 500 Index sectors, information technology was the year s top-performing sector by a wide margin, lifted by standout results from large components such as Apple, Inc., Facebook, Inc., and Alphabet, Inc. (Google). On the negative side, the telecommunication services and energy sectors posted losses. Like their U.S. counterparts, foreign stocks in developed markets posted solid returns in 2017, aided by improving economic and earnings growth, as well as a weaker U.S. dollar. Europe did better than Japan, but both regions delivered healthy double-digit gains. Emerging markets, as a whole, was one of the best-performing equity groups in Reasonably good outlooks for major industrial economies in the group, coupled with a weaker U.S. dollar, aided stocks in these markets. In the bond market, longer-term Treasury yields stabilized in 2017 after surging near the end of However, short-term yields rose, especially from September onward, as investors factored in the likelihood of a third increase in the U.S. Federal Reserve s key interest rate. The two-year Treasury note yield increased from 1.06% at the end of 2016 to 1.89% on the final day of Overall, the environment for high-quality bonds was positive but fairly muted. From an asset allocation perspective, underweight positions in mid-cap U.S. equities and global developed bonds, as well as an overweight in emerging markets equity, contributed to returns. Individual contributors to returns included Blue Chip Growth (T. Rowe Price) and Capital Appreciation (Jennison). An underweight position in international developed equity, and overweight positions in smallcap U.S. equity and short-term U.S. fixed income, detracted from returns. Individual holdings that detracted from returns included Emerging Markets Value (DFA) and Small Cap Value (Wellington). Effective October 1, 2016, JHAM assumed oversight of the managed volatility program. This program, implemented using derivatives, was introduced in March 2014 and seeks to maintain volatility of the portfolio within a specified range and protect against the risk of a significant equity market decline by adjusting equity exposure in response to changing market conditions (within prescribed limits). Given low levels of market volatility in 2017, the model maintained an overweight to equity relative to the portfolio s strategic equity percentage. PERFORMANCE TABLE 1 Average Annual Total Return Cumulative Total Return Period Ending December 31, year 5-year 10-year 5-year 10-year Managed Volatility Moderate Portfolio Series I 11.88% 6.19% 5.01% 35.01% 62.98% Managed Volatility Moderate Portfolio Series II 11.65% 5.96% 4.79% 33.60% 59.72% Managed Volatility Moderate Portfolio Series NAV 12.02% 6.24% 5.06% 35.31% 63.75% S&P 500 Index 2, % 15.79% 8.50% % % Bloomberg Barclays U.S. Aggregate Bond Index 3,5 3.54% 2.10% 4.01% 10.95% 48.11% Blended Index 4, % 6.64% 5.45% 37.88% 70.01% 1 Performance does not reflect any insurance-related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. 2 The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. 3 The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues. 4 The Blended Index is composed of 60% Bloomberg Barclays U.S. Aggregate Bond Index, 28% Russell 3000 Index, 12% MSCI EAFE Index. 5 It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns. 7

8 Managed Volatility Conservative Portfolio (formerly Lifestyle Conservative MVP) Subadvisors: John Hancock Asset Management (US); John Hancock Asset Management (North America) Portfolio Managers: Robert Boyda, Marcelle Daher, CFA, Jeffrey N. Given, CFA, Luning (Gary) Li, Nathan Thooft, CFA INVESTMENT OBJECTIVE & POLICIES The portfolio s investment objective is to seek current c income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses. The portfolio operates as a fund of funds and invests in both equity funds and fixed-income funds. The portfolio also may use certain risk management techniques to seek to manage the volatility of returns (i.e., standard deviation) and limit the magnitude of portfolio losses. The portfolio s exposure to equity securities (either directly or through investment in underlying funds or derivatives) normally will not exceed 22% of net assets. CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEXES $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 12/07 Managed Volatility Conservative Portfolio Series I S&P 500 Index Bloomberg Barclays U.S. Aggregate Bond Index Blended Index 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 $22,603 $15,952 $15,608 $14,811 Sector Weightings* Equity Asset Allocation % of Total Large Blend 9.3 U.S. Large Cap 7.4 Emerging Markets 0.8 U.S. Small Cap 0.8 International Large Cap 0.7 U.S. Mid Cap 0.6 International Small Cap 0.3 Total Equity Asset Allocation 19.9 Fixed Income Asset Allocation % of Total Intermediate Bond 61.9 Multi-Sector Bond 12.2 Global Bond 3.4 Short-Term Bond 1.1 Total Fixed Income Asset Allocation 78.6 Alternative Asset Allocation % of Total Global Conservative Absolute Return 0.5 Short-term investments and other 1.0 * As a percentage of net assets. PORTFOLIO MANAGERS COMMENTARY Performance For the year ended December 31, c 2017, the JHVIT Managed Volatility Conservative Portfolio Series I shares returned 7.82% and the benchmark, a blend of 80% Bloomberg Barclays U.S. Aggregate Bond Index, 14% Russell 3000 Index, and 6% MSCI EAFE Index, returned 7.11%. Environment Equity investors realized steady c gains and minimal declines in 2017, especially from September on. For the first time, the widely followed S&P 500 Index delivered positive results in all 12 months of the calendar year, as measured by total return. Other major indices also did well, although small-capitalization shares notably lagged. Growth stocks were clear winners over value shares. Looking at the S&P 500 Index sectors, information technology was the year s top-performing sector by a wide margin, lifted by standout results from large components such as Apple, Inc., Facebook, Inc., and Alphabet, Inc. (Google). On the negative side, the telecommunication services and energy sectors posted losses. Like their U.S. counterparts, foreign stocks in developed markets posted solid returns in 2017, aided by improving economic and earnings growth, as well as a weaker U.S. dollar. Europe did better than Japan, but both regions delivered healthy double-digit gains. Emerging markets, as a whole, was one of the best-performing equity groups in Reasonably good outlooks for major industrial economies in the group, coupled with a weaker U.S. dollar, aided stocks in these markets. In the bond market, longer-term Treasury yields stabilized in 2017 after surging near the end of However, short-term yields rose, especially from September onward, as investors factored in the likelihood of a third increase in the U.S. Federal Reserve s key interest rate. The two-year Treasury note yield increased from 1.06% at the end of 2016 to 1.89% on the final day of Overall, the environment for high-quality bonds was positive but fairly muted. From an asset allocation perspective, underweight positions in mid-cap U.S. equities and global developed bonds, as well as an overweight in emerging markets equity, contributed to returns. Individual contributors to returns included Blue Chip Growth (T. Rowe Price) and Capital Appreciation (Jennison). An underweight position in international developed equity, and overweight positions in smallcap U.S. equity and short-term U.S. fixed income, detracted from returns. Individual holdings that detracted from returns included Emerging Markets Value (DFA) and Small Cap Value (Wellington). Effective October 1, 2016, JHAM assumed oversight of the managed volatility program. This program, implemented using derivatives, was introduced in March 2014 and seeks to maintain volatility of the portfolio within a specified range and protect against the risk of a significant equity market decline by adjusting equity exposure in response to changing market conditions (within prescribed limits). Given low levels of market volatility in 2017, the model maintained an overweight to equity relative to the portfolio s strategic equity percentage. PERFORMANCE TABLE 1 Average Annual Total Return Cumulative Total Return Period Ending December 31, year 5-year 10-year 5-year 10-year Managed Volatility Conservative Portfolio Series I 7.82% 4.24% 4.55% 23.06% 56.08% Managed Volatility Conservative Portfolio Series II 7.67% 4.04% 4.35% 21.90% 53.08% Managed Volatility Conservative Portfolio Series NAV 7.94% 4.30% 4.61% 23.41% 56.99% S&P 500 Index 2, % 15.79% 8.50% % % Bloomberg Barclays U.S. Aggregate Bond Index 3,5 3.54% 2.10% 4.01% 10.95% 48.11% Blended Index 4,5 7.11% 4.37% 4.78% 23.83% 59.52% 1 Performance does not reflect any insurance-related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. 2 The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks. 3 The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues. 4 The Blended Index is composed of 80% Bloomberg Barclays U.S. Aggregate Bond Index, 14% Russell 3000 Index, 6% MSCI EAFE Index. 5 It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns. 8

9 Shareholder expense example As a shareholder of a John Hancock Variable Insurance Trust Managed Volatility Portfolio, you incur ongoing costs, such as management fees, distribution and service (Rule 12b-1) fees and other expenses. In addition to the operating expenses which the portfolio bears directly, the portfolio indirectly bears a pro rata share of the operating expenses of the affiliated underlying funds in which the portfolio invests. Because the affiliated underlying funds have varied operating expenses and transaction costs and the portfolio may own different proportions of the underlying funds at different times, the amount of expenses incurred indirectly by the portfolio will vary. Had these indirect expenses been reflected in the following analysis, total expenses would have been higher than the amounts shown. This example is intended to help you understand your ongoing costs (in dollars) of investing in the portfolio so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 at the beginning of the period and held for the entire period (July 1, 2017 through December 31, 2017). Actual expenses: The first line of each share class in the table below and on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled Expenses paid during period to estimate the expenses you paid on your account during this period. Hypothetical example for comparison purposes: The second line of each share class in the table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed annualized rate of return of 5% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs and insurance-related charges. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Beginning Account Value 7/1/2017 Ending Account Value 12/31/2017 Expenses Paid During Period 1 7/1/ /31/2017 Annualized Expense Ratio 2 Managed Volatility Aggressive Portfolio Series I Actual $1, $1, $ % Series I Hypothetical (5% annualized return before expenses) 1, , % Series II Actual 1, , % Series II Hypothetical (5% annualized return before expenses) 1, , % Series NAV Actual 1, , % Series NAV Hypothetical (5% annualized return before expenses) 1, , % Managed Volatility Growth Portfolio Series I Actual $1, $1, $ % Series I Hypothetical (5% annualized return before expenses) 1, , % Series II Actual 1, , % Series II Hypothetical (5% annualized return before expenses) 1, , % Series NAV Actual 1, , % Series NAV Hypothetical (5% annualized return before expenses) 1, , % Managed Volatility Balanced Portfolio Series I Actual $1, $1, $ % Series I Hypothetical (5% annualized return before expenses) 1, , % Series II Actual 1, , % Series II Hypothetical (5% annualized return before expenses) 1, , % Series NAV Actual 1, , % Series NAV Hypothetical (5% annualized return before expenses) 1, , % 9

10 Shareholder expense example Beginning Account Value 7/1/2017 Ending Account Value 12/31/2017 Expenses Paid During Period 1 7/1/ /31/2017 Annualized Expense Ratio 2 Managed Volatility Moderate Portfolio Series I Actual $1, $1, $ % Series I Hypothetical (5% annualized return before expenses) 1, , % Series II Actual 1, , % Series II Hypothetical (5% annualized return before expenses) 1, , % Series NAV Actual 1, , % Series NAV Hypothetical (5% annualized return before expenses) 1, , % Managed Volatility Conservative Portfolio Series I Actual $1, $1, $ % Series I Hypothetical (5% annualized return before expenses) 1, , % Series II Actual 1, , % Series II Hypothetical (5% annualized return before expenses) 1, , % Series NAV Actual 1, , % Series NAV Hypothetical (5% annualized return before expenses) 1, , % 1 Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (184), and divided by 365 (to reflect the one-half year period). 2 The portfolios expense ratios do not include fees and expenses indirectly incurred by the underlying funds and can vary based on the mix of underlying funds held by the portfolios. The range of expense ratios of the underlying funds held by the portfolios was as follows: Period Ended Managed Volatility Aggressive Managed Volatility Growth Managed Volatility Balanced Managed Volatility Conservative Managed Volatility Moderate 12/31/ % 1.09% 0.35% 1.09% 0.35% 1.09% 0.54% 1.09% 0.54% 1.09% 10

11 Portfolio of Investments December 31, 2017 (showing percentage of total net assets) Managed Volatility Aggressive Portfolio Shares or Principal Amount Value AFFILIATED INVESTMENT COMPANIES (A) % Equity % Alpha Opportunities, Series NAV (Wellington) 550,230 $ 5,573,832 Blue Chip Growth, Series NAV (T. Rowe Price) 684,671 23,908,704 Capital Appreciation, Series NAV (Jennison) 1,579,058 23,164,780 Emerging Markets Equity, Class NAV (JHAM) (B)(C)(D) 631,165 7,656,034 Emerging Markets Value, Series NAV (DFA) 2,164,722 22,967,701 Equity Income, Series NAV (T. Rowe Price) 2,239,460 39,011,391 Fundamental Large Cap Value, Class NAV (JHAM) (C)(D) 2,212,978 31,977,527 International Growth, Class NAV (Wellington) 500,878 13,859,301 International Growth Stock, Series NAV (Invesco) 1,126,334 20,904,762 International Value, Series NAV (Templeton) 1,742,082 24,754,984 International Value Equity, Class NAV (JHAM) (C)(D) 1,167,658 10,158,628 Mid Cap Stock, Series NAV (Wellington) 762,324 13,744,707 Mid Value, Series NAV (T. Rowe Price) 1,206,451 13,910,380 Multifactor Large Cap ETF (DFA) (B) 122,871 4,274,670 Multifactor Mid Cap ETF (DFA) (B) 62,781 2,141,460 Real Estate Securities, Series NAV (Deutsche) 379,115 7,426,860 Small Cap Growth, Series NAV (Wellington) (E) 569,442 5,836,777 Small Cap Value, Series NAV (Wellington) 255,360 5,153,166 Small Company Growth, Class NAV (Redwood) 221,063 4,611,377 Small Company Value, Series NAV (T. Rowe Price) 247,802 5,156,760 Strategic Equity Allocation, Series NAV (JHAM) (C)(D) 4,097,167 81,451,683 Strategic Growth, Class NAV (JHAM) (C)(D) 1,328,319 23,298,714 TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $346,135,458) $ 390,944,198 SHORT-TERM INVESTMENTS - 0.9% Commercial paper - 0.1% Bank of Tokyo-Mitsubishi UFJ, Ltd %, 01/29/2018 * $ 170, ,788 Washington Gas Light Company 1.280%, 01/04/2018 * 175, , ,072 U.S. Government - 0.1% U.S. Treasury Bill 1.065%, 01/18/2018 * 290, , %, 02/15/2018 * 365, , ,288 U.S. Government Agency - 0.7% Federal Agricultural Mortgage Corp. Discount Note 1.050%, 01/02/2018 * 219, ,994 Federal Home Loan Bank Discount Note 0.800%, 01/02/2018 * 437, , %, 01/02/2018 * 146, , %, 01/02/2018 * 858, , %, 03/23/2018 * 320, , %, 01/12/2018 * 340, ,878 Federal National Mortgage Association 0.900%, 01/02/2018 * 357, ,991 2,675,865 Managed Volatility Aggressive Portfolio (continued) Shares or Principal Amount Value SHORT-TERM INVESTMENTS (continued) Money market funds - 0.0% State Street Institutional U.S. Government Money Market Fund, Premier Class, % (F) 71,053 $ 71,053 TOTAL SHORT-TERM INVESTMENTS (Cost $3,746,084) $ 3,745,278 Total Investments (Managed Volatility Aggressive Portfolio) (Cost $349,881,542) % $ 394,689,476 Other assets and liabilities, net - (0.0%) (21,055) TOTAL NET ASSETS % $ 394,668,421 Security Abbreviations and Legend (A) The underlying portfolios subadvisor is shown parenthetically. (B) Fund is not a series of John Hancock Variable Insurance Trust, John Hancock Funds II or John Hancock Funds III. (C) The subadvisor is an affiliate of the advisor. (D) Manulife Asset Management (US) LLC is doing business as John Hancock Asset Management. (E) Non-income producing. (F) The rate shown is the annualized seven-day yield as of * Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. Managed Volatility Growth Portfolio Shares or Principal Amount Value AFFILIATED INVESTMENT COMPANIES (A) % Equity % Alpha Opportunities, Series NAV (Wellington) 8,258,668 $ 83,660,311 Blue Chip Growth, Series NAV (T. Rowe Price) 8,435, ,562,630 Capital Appreciation, Series NAV (Jennison) 19,560, ,949,741 Emerging Markets Equity, Class NAV (JHAM) (B)(C)(D) 8,960, ,696,326 Emerging Markets Value, Series NAV (DFA) 30,732, ,068,905 Equity Income, Series NAV (T. Rowe Price) 27,593, ,679,076 Fundamental Large Cap Value, Class NAV (JHAM) (C)(D) 27,187, ,853,559 International Growth, Class NAV (Wellington) 4,587, ,929,452 International Growth Stock, Series NAV (Invesco) 10,433, ,643,297 International Value, Series NAV (Templeton) 20,351, ,194,454 International Value Equity, Class NAV (JHAM) (C)(D) 3,863,819 33,615,228 Mid Cap Stock, Series NAV (Wellington) 9,101, ,107,751 Mid Value, Series NAV (T. Rowe Price) 15,458, ,239,869 Multifactor Large Cap ETF (DFA) (B) 3,161, ,005,594 Multifactor Mid Cap ETF (DFA) (B) 1,613,118 55,023,455 Small Cap Growth, Series NAV (Wellington) (E) 8,485,972 86,981,213 Small Cap Value, Series NAV (Wellington) 3,789,984 76,481,867 Small Company Growth, Class NAV (Redwood) 3,284,288 68,510,249 Small Company Value, Series NAV (T. Rowe Price) 3,726,888 77,556,529 Strategic Equity Allocation, Series NAV (JHAM) (C)(D) 166,988,261 3,319,726,637 Strategic Growth, Class NAV (JHAM) (C)(D) 16,338, ,571,525 7,040,057,668 Fixed income % Bond, Series NAV (JHAM) (C)(D) 132,371,583 1,775,102,925 Core Bond, Series NAV (Wells Capital) 19,289, ,153,580 Global Bond, Series NAV (PIMCO) 9,163, ,930,165 New Income, Series NAV (T. Rowe Price) 34,274, ,594,695 Short Term Government Income, Series NAV (JHAM) (C)(D) 2,879,580 34,612,555 The accompanying notes are an integral part of the financial statements. 11

12 Portfolio of Investments December 31, 2017 (showing percentage of total net assets) Managed Volatility Growth Portfolio (continued) Shares or Principal Amount Value AFFILIATED INVESTMENT COMPANIES (continued) Fixed income (continued) Total Return, Class NAV (PIMCO) 15,574,165 $ 210,095,482 2,823,489,402 Alternative - 0.2% Global Conservative Absolute Return, Class NAV (Standard Life) (B)(E) 2,663,770 24,719,790 TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $8,662,689,744) $ 9,888,266,860 SHORT-TERM INVESTMENTS - 1.0% Commercial paper - 0.3% Bank of Tokyo-Mitsubishi UFJ, Ltd %, 01/29/2018 * $ 4,530,000 4,524,363 BNP Paribas SA 1.530%, 02/20/2018 * 4,885,000 4,874,619 Exxon Mobil Corp %, 01/17/2018 * 1,950,000 1,948,804 Illinois Tool Works, Inc %, 01/03/2018 * 4,825,000 4,824,010 Praxair, Inc %, 02/15/2018 * 830, ,444 Telstra Corp., Ltd %, 01/18/2018 * 4,625,000 4,620,624 Washington Gas Light Company 1.280%, 01/04/2018 * 4,765,000 4,745,508 Wells Fargo Bank NA 1.503%, 02/06/2018 * 300, ,035 26,666,407 U.S. Government - 0.2% U.S. Treasury Bill 1.065%, 01/18/2018 * 10,320,000 10,314, %, 02/15/2018 * 9,220,000 9,206,055 19,520,373 U.S. Government Agency - 0.5% Federal Agricultural Mortgage Corp. Discount Note 1.050%, 01/02/2018 * 3,822,000 3,821,889 Managed Volatility Growth Portfolio (continued) Shares or Principal Amount Value SHORT-TERM INVESTMENTS (continued) U.S. Government Agency (continued) Federal Home Loan Bank Discount Note 0.800%, 01/02/2018 * $ 7,644,000 $ 7,643, %, 01/02/2018 * 2,548,000 2,547, %, 01/02/2018 * 14,992,000 14,991, %, 03/23/2018 * 10,170,000 10,139, %, 01/12/2018 * 8,035,000 8,032,123 Federal National Mortgage Association 0.900%, 01/02/2018 * 6,231,000 6,230,844 53,407,668 Money market funds - 0.0% State Street Institutional U.S. Government Money Market Fund, Premier Class, % (F) 1,313,889 1,313,889 TOTAL SHORT-TERM INVESTMENTS (Cost $100,932,455) $ 100,908,337 Total Investments (Managed Volatility Growth Portfolio) (Cost $8,763,622,199) % $ 9,989,175,197 Other assets and liabilities, net - 0.3% 29,861,917 TOTAL NET ASSETS % $ 10,019,037,114 Security Abbreviations and Legend (A) The underlying portfolios subadvisor is shown parenthetically. (B) Fund is not a series of John Hancock Variable Insurance Trust, John Hancock Funds II or John Hancock Funds III. (C) The subadvisor is an affiliate of the advisor. (D) Manulife Asset Management (US) LLC is doing business as John Hancock Asset Management. (E) Non-income producing. (F) The rate shown is the annualized seven-day yield as of * Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. DERIVATIVES FUTURES Open contracts Number of contracts Position Expiration date Notional basis* Notional value* Unrealized appreciation (depreciation) British Pound Currency Futures 402 Long Mar 2018 $33,756,628 $34,061,963 $305,335 Euro FX Futures 475 Long Mar ,503,281 71,698,281 1,195,000 Euro STOXX 50 Index Futures 1,691 Long Mar ,941,324 70,871,055 (1,070,269) FTSE 100 Index Futures 341 Long Mar ,626,113 35,165,461 1,539,348 Japanese Yen Currency Futures 292 Long Mar ,813,999 32,536,100 (277,899) MSCI Emerging Markets Index Futures 1,623 Long Mar ,191,227 94,434,255 5,243,028 Nikkei 225 Index Futures 162 Long Mar ,695,963 32,709,119 13,156 Russell 2000 Index E-Mini Futures 407 Long Mar ,921,978 31,267, ,797 S&P 500 Index E-Mini Futures 3,161 Long Mar ,820, ,941,800 7,121,496 S&P MidCap 400 Index E-Mini Futures 402 Long Mar ,704,306 76,476, ,174 $15,187,166 * Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract. OTC is an abbreviation for over-the-counter. See Notes to financial statements regarding investment transactions and other derivatives information. The accompanying notes are an integral part of the financial statements. 12