John Hancock Mutual Funds Update

Transcription

1 John Hancock Mutual Funds Update April 1, 2013 John Hancock Mutual Funds announces closure of Class B shares John Hancock Mutual Funds will discontinue the sale of Class B shares to all new and existing shareholders, which is consistent with an industry trend away from Class B shares as interest in other share classes has increased. Beginning July 1, 2013, John Hancock Mutual Funds Class B shares will close to all purchase activity. We have prepared a notification to be mailed to shareholders who have assets in Class B shares in at least one John Hancock fund, with copies to their advisors. Shareholder communication will emphasize that existing shareholders in Class B shares don t have to take any action as a result of this change unless they invest through a Monthly Automatic Accumulation Program (MAAP). They may continue to hold Class B shares in their account. Those shares will automatically convert to Class A shares on the time line specified in each Fund s prospectus as scheduled. Below are highlights of the change and a list of key dates. We ve also included a Q&A to answer questions in more detail. Highlights Beginning on April 15, 2013, no initial purchases to new accounts may be made into Class B shares. The last business day that initial purchases to new accounts will be accepted is April 12, Group retirement plans may continue to add new participants to plans already invested in Class B shares of John Hancock funds. Beginning on July 1, 2013, the share class will close to all purchase activity and no purchases of any kind will be accepted into Class B shares. The last business day that purchases will be accepted is June 28, If existing shareholders have elected to have their dividends and capital gains reinvested in the Fund, this reinvestment will continue without interruption. Existing shareholders will continue to have exchange privileges with Class B shares of other John Hancock funds. They will also continue to have the ability to redeem shares, subject to any applicable contingent deferred sales charge (CDSC). Shareholders who participate in a MAAP for Class B shares will have to select another share class to continue the automatic investment. Share class minimums and fees will apply. See the Q&A for details. All class attributes, including the associated Rule 12b-1 fee, CDSC, shareholder servicing fee and conversion features, will continue. Retirement accounts Employer-sponsored retirement plans that currently hold Class B shares and can no longer purchase them due to the closure of Class B shares to purchases may instead purchase Class A shares and pay the applicable Class A share sales charge, provided that the plan s recordkeeper can properly assess a sales charge on plan investments. Class C shares may be purchased if the plan meets Class C share eligibility requirements and Class C shares are available on their recordkeeper s platform. If the recordkeeper is not able to assess a front-end sales charge on Class A shares, or Class C shares are otherwise not an available or appropriate investment option, only then may such employer-sponsored retirement plans invest in one of the R share classes. Shareholders can continue to hold existing Class B shares in their IRA or SIMPLE IRA account, but additional contributions must be made to another share class. If they have established a MAAP for their IRA or SIMPLE IRA, they must provide alternative investment instructions by July 1, See the Q&A for details. Important dates March 28 April 1 April 9 April 15 July 1 Ongoing Prospectus filed Home offices/back offices/advisors notified Shareholders notified (advisors notified in advance) Class B shares closed to initial purchases in new accounts Class B shares closed to all purchases Class B shares continue to convert to Class A shares according to the time line specified in each Fund s prospectus

2 John Hancock Mutual Funds Class B Shares Updated April 1, 2013 Fund # Fund Name Cusip # Symbol 136 Balanced Fund B 47803P203 SVBBX 121 Bond Fund B JHBBX 153 California Tax-Free Income Fund B 41014R207 TSCAX 138 Classic Value Fund B JCVBX 3401 Disciplined Value Fund B 47803U665 JVLBX 170 Financial Industries Fund B FIDBX 3281 Floating Rate Income Fund B 47804A726 JFIBX 169 Global Opportunities Fund B 41013P780 JGPBX 3201 Global Shareholder Yield Fund B 47803U202 JGYBX 156 Government Income Fund B 41014P847 TSGIX 108 Greater China Opportunities Fund B JCOBX 157 High Yield Fund B 41014P821 TSHYX 159 High Yield Municipal Bond Fund B 41013Y401 TSHTX 191 Income Fund B STIBX 3181 International Allocation Portfolio B 47803T239 JAIBX 166 International Core Fund B 47803T478 GOCBX 187 International Growth Fund B 47803T593 GONBX 155 Investment Grade Bond Fund B 41014P201 TSUSX 150 Large Cap Equity Fund B 41013P202 TSGWX 196 Lifestyle Aggressive Portfolio B 47803V564 JBLAX 107 Lifestyle Balanced Portfolio B 47803V473 JBLBX 198 Lifestyle Conservative Portfolio B 47803V390 JBLCX 104 Lifestyle Growth Portfolio B 47803V325 JBLGX 197 Lifestyle Moderate Portfolio B 47803V242 JBLMX 177 Massachusetts Tax-Free Income Fund B JHMBX 181 Mid Cap Equity Fund B JCEBX 144 Money Market Fund B TSMXX 176 New York Tax-Free Income Fund B JNTRX 3341 Rainier Growth Fund B 47803U707 RGRBX 101 Regional Bank Fund B FRBFX 137 Small Cap Equity Fund B SPVBX 164 Small Cap Intrinsic Value Fund B 41013P830 JCIBX 129 Sovereign Investors Fund B 47803P401 SOVBX 152 Tax-Free Bond Fund B 41013Y203 TSMBX 126 U.S. Global Leaders Growth Fund B USLBX

3 John Hancock Mutual Funds Update Additional Information John Hancock Mutual Funds is closing sales of Class B shares to new and existing shareholders beginning July 1, The following Q&A provides information regarding the closure of Class B shares to new purchases and the impact it will have on existing shareholders. General Q: Why is John Hancock closing Class B shares to sales? A: The sales of Class B shares have been on a sustained decline throughout the industry for the past several years. The decline in sales and assets has prompted an overall industry shift away from the share class. John Hancock s decision to close sales of Class B shares to new and existing investors is consistent with the industry trend. Q: How will existing shareholders be impacted? A: Beginning on April 15, 2013, no initial purchases to new accounts may be made into Class B shares. The last business day that initial purchases to new accounts will be accepted is April 12, Group retirement plans may continue to add new participants to plans already invested in Class B shares of John Hancock funds. Beginning on July 1, 2013, the share class will close to all purchase activity and no purchases of any kind will be accepted into Class B shares. The last business day that purchases will be accepted is June 28, If existing shareholders have elected to have their dividends and capital gains reinvested in the fund, this reinvestment will continue without interruption. The Class B shares held by shareholders will continue until they convert to Class A shares, in accordance with the time line indicated in each fund s prospectus. Existing shareholders will continue to have exchange privileges with Class B shares of other John Hancock funds. They will also continue to have the ability to redeem shares, subject to any applicable contingent deferred sales charge (CDSC). Shareholders purchasing Class B shares through a Monthly Automatic Accumulation Program (MAAP) or employer-sponsored retirement plan may need to designate another share class for investment (subject to all fees and minimum requirements). Q: What do Class B shareholders in John Hancock funds have to do as a result of this change? A: Nothing, unless they are investing through a MAAP (see section on MAAPs below). The conversion over time from Class B to Class A shares that has always been scheduled to occur on a time line specified in the fund s prospectus will happen automatically as scheduled. No action is required on the shareholder s part. Q: Will dividends and capital gains continue to be reinvested in Class B shares? A: Yes. Any reinvestment plan will continue uninterrupted. Dividends and/or capital gains distributions will continue to be made in Class B shares until the automatic conversion to Class A shares. Q: Can shareholders still make exchanges between Class B share accounts after July 1, 2013? A: Yes. Existing shareholders will be able to exchange their Class B shares of a John Hancock fund for Class B shares of other John Hancock funds, as permitted by existing exchange privileges. Q: Can shareholders convert their Class B shares to another share class? A: Shareholders may redeem Class B shares, subject to any applicable CDSC, and then repurchase shares of the same fund or another John Hancock fund in any share class for which they are eligible. A sales charge may apply to the purchase, depending on the class selected.

4 Q: Will existing shareholders be able to establish a new account for Class B shares? A: No new fund direct accounts can be opened beginning on April 15, Shareholders planning to open a new Class B share account through a financial advisor before that date will be instructed to contact their financial advisor to determine whether they are still opening new accounts for Class B shares. Q: What if shareholders still want to purchase Class B shares of a John Hancock fund? A: Shareholders will no longer be able to purchase Class B shares beginning on July 1, They may purchase any other share class for which they are eligible, subject to any applicable minimum investment requirements and sales charges. Q: Can shareholders redeem Class B shares after the share class closes? A: Shareholders can redeem their Class B shares at any time, subject to any applicable CDSC. Q: What will happen to the 120-day reinvestment privilege? A: The 120-day reinvestment privilege will remain unchanged. Q: Is the redemption of Class B shares a taxable event? A: The redemption of Class B shares prior to their established conversion schedule may trigger a taxable event. Shareholders will be advised to consult their tax advisor prior to taking action. Q: Will John Hancock allow transfers for shareholders in Class B shares? A: In most cases, yes. Transfers that are the result of a change in broker-dealer and most other changes in registration will be allowed. Q: How will requests to purchase Class B shares be handled on or after July 1, 2013? A: NSCC-traded accounts: Subsequent and automatic purchases directed to Class B shares that are received on or after July 1, 2013 through the National Securities Clearing Corporation (NSCC) will be rejected. Direct accounts: Systematic: Shareholders purchasing Class B shares through a MAAP will be contacted directly by John Hancock before the closure and asked to provide new instructions. If no new instructions are received prior to July 1, 2013, the MAAP will be discontinued. Non-systematic: John Hancock will attempt to contact shareholders who submit a subsequent purchase directed to Class B shares (that meets the applicable fund minimum investment requirement of a different share class) to inform them of the Class B share closure and ask for instructions on how to redirect the purchase. If John Hancock is unable to make contact with the shareholder, the purchase request will be rejected. Subsequent purchases directed to Class B shares that do not meet the applicable minimum investment requirements for another share class will be rejected. Q: What will happen to existing systematic withdrawal plans and systematic exchange plans for Class B shares? A: These plans will continue to operate without change on and after July 1, Q: Will assets in Class B shares continue to be aggregated for the purposes of accumulation privileges when purchasing Class A shares? A: Yes. Accumulation privileges, as described in the prospectus, will remain unchanged. Shareholders can continue to include the value of any class of shares, including Class B shares, of any John Hancock open-end fund currently owned for purposes of qualifying for a reduced Class A share sales charge. Q: What will happen to 12b-1 fees associated with Class B shares? A: All class attributes, including the associated 12b-1 fee, CDSC, shareholder servicing fee and conversion features, will continue.

5 Monthly Automatic Accumulation Programs (MAAP) Q: What happens if shareholders are investing through a MAAP? A: Beginning on July 1, 2013, shareholders will no longer have the option to make automatic investments into Class B shares. To continue automatic investments, they will need to designate a different share class for any purchase after the closing date (see the question below for details). They can switch to any share class they are eligible to invest in of the same fund or another John Hancock fund. Other share classes may be subject to a front-end sales charge and minimum initial investment requirements. Shareholders have been directed to read the appropriate prospectus for more information. Q: How can shareholders communicate new investment instructions for automatic purchases? A: To stop a systematic investment: If simply stopping a systematic investment, shareholders have two options: Log in to their account through and stop the automatic payment or call a Customer Service Representative (see Additional Help for contact information). To change a systematic investment: If shareholders already have an account established in another share class and are not changing the banking information already on file, they can complete a MAAP enrollment form, which can be found at and mail it to John Hancock Signature Services. They can also make the change in their account online at or call a Customer Service Representative (see Additional Help for contact information). If shareholders already have an account established in another share class but are changing the banking information on file, they do not have the option to make the change online. They must complete a MAAP enrollment form, which can be found at and mail it along with a preprinted voided check to John Hancock Signature Services (see Additional Help for contact information). If shareholders do not have an account established in another share class and wish to establish one, they must complete a new account application, which can be found at and mail it along with a preprinted voided check to John Hancock Signature Services (see Additional Help for contact information). The option to establish a MAAP is included in the application. All fees and minimums would apply to the new account. Q: What happens if shareholders don t designate a different share class? A: Any investments in existing Class B share accounts that are received on or after July 1, 2013, including from automatic purchases, will be rejected unless we receive new instructions. Q: Can shareholders still establish a new MAAP for Class B shares? A: No. To ensure that we have proper instructions for shareholder investments and that we do not reject any investments received in Class B shares beginning on July 1, 2013, John Hancock is no longer establishing new MAAPs for Class B shares. Retirement plans Q: What will happen to employer-sponsored group retirement plans invested in Class B shares? A: Employer-sponsored retirement plans that currently hold Class B shares and can no longer purchase them due to the closure of Class B shares to purchases may instead purchase Class A shares and pay the applicable Class A share sales charge, provided that the plan s recordkeeper can properly assess a sales charge on plan investments. Class C shares may be purchased if the plan meets Class C share eligibility requirements and Class C shares are available on their recordkeeper s platform. If the recordkeeper is not able to assess a front-end sales charge on Class A shares, or Class C shares are otherwise not an available or appropriate investment option, only then may such employer-sponsored retirement plans invest in one of the R share classes.

6 Q: Will shareholders be permitted to make additional contributions in Class B shares in direct IRA or SIMPLE IRA accounts? A: No. Shareholders can continue to hold existing Class B shares in their IRA or SIMPLE IRA account, but additional contributions must be made to another share class. If they have established a MAAP for their IRA or SIMPLE IRA, they must provide alternative investment instructions by July 1, 2013 (see section on MAAPs). If they don t, subsequent automatic purchases will be rejected. Shareholders will be advised to consult their tax advisor prior to taking action. Q: Can shareholders make a conversion or re-characterization of their existing IRA or Roth IRA in Class B shares? A: Yes. New money cannot be added, but existing assets may be re-characterized or converted and remain in Class B shares. Additional help Q: Who do shareholders holding positions direct at the Fund contact for more information? A: For further assistance, shareholders can contact their financial professional and/or tax advisor, or call one of our Customer Service Representatives at , Monday through Thursday, between 8:00 a.m. and 7:00 p.m., and Friday between 8:00 a.m. and 6:00 p.m., Eastern Time. They can also visit for more information. To contact John Hancock Signature Services by mail, shareholders can use the following: Regular Mail: John Hancock Signature Services, Inc. P.O. Box Boston, MA Express Mail: John Hancock Signature Services, Inc. 30 Dan Road Canton, MA Q: Who do clients in networked accounts contact for more information? A: For further assistance, clients holding accounts through an intermediary should contact their advisor. John Hancock Funds, LLC Member FINRA SIPC 601 Congress Street n Boston, MA n TDD n Not FDIC insured. May lose value. no bank guarantee. not insured by any government agency. THIS MATERIAL IS FOR INSTITUTIONAL/BROKER-DEALER USE ONLY. NOT FOR DISTRIBUTION OR USE WITH THE PUBLIC. BSCUPLTR 3/13