N-CSR 1 f25573d1.htm N-CSR N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21777

John Hancock Funds III

(Exact name of registrant as specified in charter)

200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)

Salvatore Schiavone

Treasurer

200 Berkeley Street

Boston, Massachusetts 02116

(Name and address of agent for service) Registrant's telephone number, including area code: 617-543-9634

Date of fiscal year end:

March 31

Date of reporting period:

March 31, 2023


ITEM 1. REPORTS TO STOCKHOLDERS

The Registrant prepared the following five annual reports to shareholders for the period ended March 31, 2023:

John Hancock Disciplined Value Fund

John Hancock Disciplined Value Mid Cap Fund

John Hancock Global Shareholder Yield Fund

John Hancock International Growth Fund

John Hancock U.S. Growth Fund


Annual report
John Hancock
Disciplined Value Fund
U.S. equity
March 31, 2023

A message to shareholders
Dear shareholder,
The U.S. stock market lost ground and experienced elevated volatility during the 12 months ended March 31, 2023. While economic growth remained in positive territory, the aggressive actions of the U.S. Federal Reserve (Fed) raised concerns that a recession and a concurrent slowdown in corporate earnings would occur in 2023. A variety of other events weighed on sentiment throughout the period, including the Russian invasion of Ukraine and China’s extended zero-COVID policy in place until the close of 2022.
U.S. stocks advanced during the first quarter of 2023, despite the unexpected collapse of three regional banks. Although the bank news initially led to a steep market decline, stocks recovered when it became clear the industry’s problems were contained, consumers were remaining resilient, and inflation was in line with expectations. The likelihood that a constrained lending environment would help slow economic growth and lead to stabilized interest rates further encouraged investors. The Fed proceeded with another increase in its target interest rate toward the end of the period.
In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
Global Head of Retail,
Manulife Investment Management
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.


Your fund at a glance
INVESTMENT OBJECTIVE

The fund seeks to provide long-term growth of capital primarily through investment in equity securities. Current income is a secondary objective.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/2023 (%)

The Russell 1000 Value Index tracks the performance of publicly traded large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 JOHN HANCOCK DISCIPLINED VALUE FUND  | ANNUAL REPORT  

PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS

The fund’s benchmark, the Russell 1000 Value Index, lost ground for the period
While rising interest rates weighed heavily on stock prices, the value style outperformed the broader market.
The fund outpaced the benchmark
Stock selection in the consumer discretionary and materials sectors were the primary drivers of the positive results.
Selection in other sectors detracted
Holdings in the energy and communication services sectors experienced the weakest relative performance.
SECTOR COMPOSITION AS OF 3/31/2023 (% of net assets)

Notes about risk
The fund is subject to various risks as described in the fund’s prospectus. Political tensions and armed conflicts, including the Russian invasion of Ukraine, and any resulting economic sanctions on entities and/or individuals of a particular country could lead such a country into an economic recession. The COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions, and closures, which may lead to less liquidity in certain instruments, industries, sectors, or the markets, generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectus.
  ANNUAL REPORT  | JOHN HANCOCK DISCIPLINED VALUE FUND 3

Management’s discussion of fund performance
How would you describe the market environment during the 12 months ended March 31, 2023?
U.S. equities produced negative returns with elevated volatility in the annual period, largely as a result of the U.S. Federal Reserve’s (Fed’s) efforts to combat inflation with tighter monetary policy. While economic growth remained in positive territory, the Fed’s aggressive actions raised concerns that a recession and a concurrent slowdown in corporate earnings would occur in 2023. A variety of other events weighed on sentiment throughout the period, including the Russian invasion of Ukraine, China’s extended zero-COVID policy, and the failure of several U.S. banks.
What factors affected the fund’s performance?
The fund posted a loss but outpaced its benchmark. Sector allocation made the largest contribution. An overweight in energy was particularly helpful as the sector benefited not just from rising oil prices, but also improved operational efficiencies. A zero weighting in real estate was a further plus. The sector lagged considerably due to the combination of higher interest rates, expectations for slower economic growth, and the headwinds in the continued work-from-home trend created for the office sector.
TOP 10 HOLDINGS
AS OF 3/31/2023 (% of net assets)
JPMorgan Chase & Co. 3.6
Berkshire Hathaway, Inc., Class B 3.6
Alphabet, Inc., Class A 3.3
Bristol-Myers Squibb Company 3.1
Johnson & Johnson 2.9
Sanofi, ADR 2.9
Cisco Systems, Inc. 2.7
AutoZone, Inc. 2.4
Marathon Petroleum Corp. 2.2
Activision Blizzard, Inc. 2.2
TOTAL 28.9
Cash and cash equivalents are not included.
COUNTRY COMPOSITION
AS OF 3/31/2023 (% of net assets)
United States 87.3
France 2.9
Canada 2.6
Ireland 2.5
United Kingdom 2.1
Switzerland 1.0
Other countries 1.6
TOTAL 100.0
4 JOHN HANCOCK DISCIPLINED VALUE FUND  | ANNUAL REPORT  

The contribution from allocation was offset, to some extent, by an adverse effect from stock selection. The largest shortfall occurred in energy, with the primary detractors being zero weightings in a number of the sector’s top performers. In addition, a position in the Halliburton Company trailed its peers. Energy, however, was also home to several of the fund’s top individual contributors in the period, including Marathon Petroleum Corp., ConocoPhillips, and Schlumberger NV, Ltd.
Stock selection in communication services also detracted from results. Positions in Alphabet, Inc. (parent of Google) and Meta Platforms, Inc. (formerly Facebook), both of which were affected by the broader sell-off in mega-cap growth stocks in 2022, lost ground. We chose to sell the position in Meta, which prevented the fund from benefiting when the stock surged in early 2023 after the company announced it would cut costs to focus more on bottom-line results.
On the positive side, selection in the consumer discretionary sector added value thanks to overweight positions in auto-parts providers AutoZone, Inc. and LKQ Corp., and an out-of-benchmark position in Booking Holdings, Inc. The materials sector was an additional area of strength. Shares of the building products company CRH PLC rose on hopes that the U.S. infrastructure bill will boost its aggregates business and help its 2023 growth and cash flows exceed expectations. Axalta Coating Systems, Ltd. also outperformed as pricing—which previously wasn’t keeping pace with the company’s rising costs—improved across all of its business segments, helping its valuation rebound from depressed levels.
Can you tell us about a recent change to the portfolio management team?
Effective January 31, 2023, Stephanie McGirr left the team.
MANAGED BY

Mark E. Donovan, CFA
David J. Pyle, CFA
David T. Cohen, CFA
Joshua White, CFA
The views expressed in this report are exclusively those of the portfolio management team at Boston Partners Global Investors, Inc. (Boston Partners), and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Boston Partners is an indirect, wholly owned subsidiary of ORIX Corporation of Japan.
  ANNUAL REPORT  | JOHN HANCOCK DISCIPLINED VALUE FUND 5

A look at performance
TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023

Average annual total returns (%)
with maximum sales charge
Cumulative total returns (%)
with maximum sales charge
  1-year 5-year 10-year 5-year 10-year
Class A -10.31 5.93 8.53 33.37 126.69
Class C -7.14 6.23 8.27 35.26 121.36
Class I1 -5.33 7.29 9.37 42.17 144.96
Class R21 -5.73 6.86 8.92 39.36 135.07
Class R41 -5.52 7.13 9.20 41.14 141.21
Class R51 -5.31 7.35 9.44 42.59 146.37
Class R61 -5.22 7.41 9.48 42.94 147.48
Class NAV1 -5.20 7.41 9.49 42.99 147.70
Index 1 -5.91 7.50 9.13 43.55 139.52
Index 2 -7.73 11.19 12.24 69.94 217.36
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R5, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until July 31, 2023 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
  Class A Class C Class I Class R2 Class R4 Class R5 Class R6 Class NAV
Gross (%) 1.01 1.76 0.76 1.16 1.01 0.71 0.66 0.65
Net (%) 1.00 1.75 0.75 1.15 0.90 0.70 0.65 0.64
Please refer to the most recent prospectuses and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
  † Index 1 is the Russell 1000 Value Index; Index 2 is the S&P 500 Index.
See the following page for footnotes.
6 JOHN HANCOCK DISCIPLINED VALUE FUND  | ANNUAL REPORT  

This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Disciplined Value Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in two separate indexes.
  Start date With maximum
sales charge ($)
Without
sales charge ($)
Index 1 ($) Index 2 ($)
Class C2 3-31-13 22,136 22,136 23,952 31,736
Class I1 3-31-13 24,496 24,496 23,952 31,736
Class R21 3-31-13 23,507 23,507 23,952 31,736
Class R41 3-31-13 24,121 24,121 23,952 31,736
Class R51 3-31-13 24,637 24,637 23,952 31,736
Class R61 3-31-13 24,748 24,748 23,952 31,736
Class NAV1 3-31-13 24,770 24,770 23,952 31,736
The Russell 1000 Value Index tracks the performance of publicly traded large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values.
The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 For certain types of investors, as described in the fund’s prospectuses.
2 The contingent deferred sales charge is not applicable.
  ANNUAL REPORT  | JOHN HANCOCK DISCIPLINED VALUE FUND 7

Your expenses
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on October 1, 2022, with the same investment held until March 31, 2023.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at March 31, 2023, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on October 1, 2022, with the same investment held until March 31, 2023. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
8 JOHN HANCOCK DISCIPLINED VALUE FUND | ANNUAL REPORT  

Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART

    Account
value on
10-1-2022
Ending
value on
3-31-2023
Expenses
paid during
period ended
3-31-20231
Annualized
expense
ratio
Class A Actual expenses/actual returns $1,000.00 $1,120.70 $5.39 1.02%
  Hypothetical example 1,000.00 1,019.80 5.14 1.02%
Class C Actual expenses/actual returns 1,000.00 1,116.60 9.29 1.76%
  Hypothetical example 1,000.00 1,016.20 8.85 1.76%
Class I Actual expenses/actual returns 1,000.00 1,122.50 4.07 0.77%
  Hypothetical example 1,000.00 1,021.10 3.88 0.77%
Class R2 Actual expenses/actual returns 1,000.00 1,119.70 6.18 1.17%
  Hypothetical example 1,000.00 1,019.10 5.89 1.17%
Class R4 Actual expenses/actual returns 1,000.00 1,121.20 4.81 0.91%
  Hypothetical example 1,000.00 1,020.40 4.58 0.91%
Class R5 Actual expenses/actual returns 1,000.00 1,122.70 3.76 0.71%
  Hypothetical example 1,000.00 1,021.40 3.58 0.71%
Class R6 Actual expenses/actual returns 1,000.00 1,122.80 3.49 0.66%
  Hypothetical example 1,000.00 1,021.60 3.33 0.66%
Class NAV Actual expenses/actual returns 1,000.00 1,122.80 3.44 0.65%
  Hypothetical example 1,000.00 1,021.70 3.28 0.65%
    
1 Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
  ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND 9

Fund’s investments
AS OF 3-31-23
        Shares Value
Common stocks 97.3%         $11,747,919,621
(Cost $9,300,452,450)          
Communication services 6.6%     794,097,367
Entertainment 2.2%      
Activision Blizzard, Inc.     3,011,369 257,743,073
Interactive media and services 3.3%      
Alphabet, Inc., Class A (A)     3,862,904 400,699,033
Wireless telecommunication services 1.1%      
T-Mobile US, Inc. (A)     936,587 135,655,261
Consumer discretionary 5.7%     682,545,556
Distributors 1.0%      
LKQ Corp.     2,030,515 115,252,031
Hotels, restaurants and leisure 0.9%      
Booking Holdings, Inc. (A)     42,761 113,419,704
Household durables 1.4%      
Mohawk Industries, Inc. (A)     627,897 62,927,837
Sony Group Corp., ADR     1,180,176 106,982,954
Specialty retail 2.4%      
AutoZone, Inc. (A)     115,519 283,963,030
Consumer staples 6.6%     802,642,161
Beverages 3.1%      
Coca-Cola Europacific Partners PLC     2,166,894 128,258,456
Keurig Dr. Pepper, Inc.     6,978,090 246,187,015
Consumer staples distribution and retail 3.5%      
The Kroger Company     1,891,351 93,375,999
U.S. Foods Holding Corp. (A)     3,488,911 128,880,372
Walmart, Inc.     1,396,679 205,940,319
Energy 11.4%     1,374,462,239
Energy equipment and services 2.6%      
Halliburton Company     4,199,890 132,884,520
Schlumberger, Ltd.     3,765,530 184,887,523
Oil, gas and consumable fuels 8.8%      
BP PLC, ADR     3,160,599 119,913,126
Canadian Natural Resources, Ltd.     2,935,942 162,504,390
Cenovus Energy, Inc.     8,627,632 150,638,455
ConocoPhillips     1,207,262 119,772,463
Devon Energy Corp.     749,785 37,946,619
Marathon Petroleum Corp.     1,956,207 263,755,390
Peabody Energy Corp. (A)     2,374,128 60,777,677
10 JOHN HANCOCK DISCIPLINED VALUE FUND | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

        Shares Value
Energy (continued)      
Oil, gas and consumable fuels (continued)      
Pioneer Natural Resources Company     692,235 $141,382,076
Financials 17.9%     2,159,726,358
Banks 7.0%      
Bank of America Corp.     4,814,040 137,681,544
JPMorgan Chase & Co.     3,356,517 437,387,731
Truist Financial Corp.     1,046,943 35,700,756
Wells Fargo & Company     6,398,114 239,161,501
Capital markets 2.3%      
Ares Management Corp., Class A     590,461 49,268,066
Intercontinental Exchange, Inc.     722,873 75,388,425
The Goldman Sachs Group, Inc.     469,617 153,616,417
Consumer finance 0.5%      
Discover Financial Services     629,858 62,255,165
Financial services 5.0%      
Berkshire Hathaway, Inc., Class B (A)     1,392,622 429,999,895
FleetCor Technologies, Inc. (A)     576,142 121,479,541
Global Payments, Inc.     428,001 45,042,825
Insurance 3.1%      
Aon PLC, Class A     221,581 69,862,273
Arthur J. Gallagher & Company     516,681 98,846,242
Chubb, Ltd.     653,739 126,943,039
Everest Re Group, Ltd.     92,813 33,228,910
The Allstate Corp.     395,849 43,864,028
Health care 19.9%     2,408,467,412
Biotechnology 1.5%      
AbbVie, Inc.     525,792 83,795,471
Amgen, Inc.     396,036 95,741,703
Health care providers and services 7.8%      
AmerisourceBergen Corp.     911,140 145,882,625
Centene Corp. (A)     1,884,118 119,095,099
CVS Health Corp.     2,384,259 177,174,286
McKesson Corp.     174,612 62,170,603
The Cigna Group     768,813 196,454,786
UnitedHealth Group, Inc.     501,485 236,996,796
Life sciences tools and services 1.7%      
Avantor, Inc. (A)     3,992,116 84,393,332
ICON PLC (A)(B)     590,514 126,127,885
Pharmaceuticals 8.9%      
Bristol-Myers Squibb Company     5,418,024 375,523,243
Johnson & Johnson     2,291,402 355,167,310
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND 11

        Shares Value
Health care (continued)      
Pharmaceuticals (continued)      
Sanofi, ADR     6,430,435 $349,944,273
Industrials 12.7%     1,536,758,704
Aerospace and defense 2.4%      
General Dynamics Corp.     672,786 153,536,493
Howmet Aerospace, Inc.     3,329,701 141,079,431
Building products 1.1%      
Allegion PLC     634,013 67,668,207
Masco Corp.     1,412,200 70,214,584
Electrical equipment 1.0%      
Eaton Corp. PLC     690,697 118,344,024
Machinery 5.0%      
Caterpillar, Inc.     469,421 107,422,302
Deere & Company     397,476 164,109,891
Dover Corp.     440,817 66,977,735
Fortive Corp.     1,612,658 109,934,896
Otis Worldwide Corp.     921,811 77,800,848
Wabtec Corp.     784,165 79,247,715
Professional services 1.6%      
Leidos Holdings, Inc.     1,004,347 92,460,185
SS&C Technologies Holdings, Inc.     1,668,764 94,235,103
Trading companies and distributors 1.6%      
United Rentals, Inc.     489,507 193,727,290
Information technology 10.3%     1,238,912,796
Communications equipment 2.7%      
Cisco Systems, Inc.     6,097,864 318,765,841
IT services 0.8%      
Cognizant Technology Solutions Corp., Class A     1,546,947 94,255,481
Semiconductors and semiconductor equipment 6.8%      
Advanced Micro Devices, Inc. (A)     1,148,272 112,542,139
Applied Materials, Inc.     1,260,194 154,789,629
Lam Research Corp.     139,988 74,210,439
Microchip Technology, Inc.     1,564,733 131,093,331
Micron Technology, Inc.     1,962,268 118,403,251
NXP Semiconductors NV     269,643 50,281,678
Qualcomm, Inc.     1,446,708 184,571,007
Materials 4.2%     504,734,505
Chemicals 3.3%      
Axalta Coating Systems, Ltd. (A)     3,023,643 91,586,146
Corteva, Inc.     1,032,937 62,296,430
12 JOHN HANCOCK DISCIPLINED VALUE FUND | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

        Shares Value
Materials (continued)      
Chemicals (continued)      
DuPont de Nemours, Inc.     2,326,566 $166,977,642
Olin Corp.     1,361,776 75,578,568
Construction materials 0.9%      
CRH PLC, ADR (B)     2,128,872 108,295,719
Utilities 2.0%     245,572,523
Electric utilities 1.0%      
FirstEnergy Corp.     3,163,554 126,731,973
Multi-utilities 1.0%      
CenterPoint Energy, Inc.     4,033,963 118,840,550
    
    Yield (%)   Shares Value
Short-term investments 2.9%         $353,101,559
(Cost $353,098,978)          
Short-term funds 2.9%         353,101,559
John Hancock Collateral Trust (C) 4.9438(D)   749,311 7,490,790
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.6799(D)   345,610,769 345,610,769
    
Total investments (Cost $9,653,551,428) 100.2%     $12,101,021,180
Other assets and liabilities, net (0.2%)       (24,576,616)
Total net assets 100.0%         $12,076,444,564
    
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR American Depositary Receipt
(A) Non-income producing security.
(B) All or a portion of this security is on loan as of 3-31-23.
(C) Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending.
(D) The rate shown is the annualized seven-day yield as of 3-31-23.
At 3-31-23, the aggregate cost of investments for federal income tax purposes was $9,698,074,953. Net unrealized appreciation aggregated to $2,402,946,227, of which $2,627,636,834 related to gross unrealized appreciation and $224,690,607 related to gross unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND 13

Financial statements
STATEMENT OF ASSETS AND LIABILITIES 3-31-23

Assets  
Unaffiliated investments, at value (Cost $9,646,063,219) including $7,317,742 of securities loaned $12,093,530,390
Affiliated investments, at value (Cost $7,488,209) 7,490,790
Total investments, at value (Cost $9,653,551,428) 12,101,021,180
Dividends and interest receivable 13,521,114
Receivable for fund shares sold 13,997,607
Receivable for investments sold 34,922,239
Receivable for securities lending income 16,825
Other assets 1,229,906
Total assets 12,164,708,871
Liabilities  
Payable for investments purchased 67,291,120
Payable for fund shares repurchased 11,566,484
Payable upon return of securities loaned 7,476,759
Payable to affiliates  
Accounting and legal services fees 495,965
Transfer agent fees 666,205
Distribution and service fees 17,015
Trustees’ fees 761
Other liabilities and accrued expenses 749,998
Total liabilities 88,264,307
Net assets $12,076,444,564
Net assets consist of  
Paid-in capital $9,340,029,489
Total distributable earnings (loss) 2,736,415,075
Net assets $12,076,444,564
 
14 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES  (continued)

Net asset value per share  
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value  
Class A ($1,184,553,199 ÷ 54,525,446 shares)1 $21.72
Class C ($79,184,685 ÷ 3,975,821 shares)1 $19.92
Class I ($5,657,474,885 ÷ 272,055,499 shares) $20.80
Class R2 ($49,637,673 ÷ 2,390,852 shares) $20.76
Class R4 ($48,963,915 ÷ 2,353,525 shares) $20.80
Class R5 ($58,942,439 ÷ 2,827,004 shares) $20.85
Class R6 ($3,846,305,856 ÷ 184,509,754 shares) $20.85
Class NAV ($1,151,381,912 ÷ 55,205,513 shares) $20.86
Maximum offering price per share  
Class A (net asset value per share ÷ 95%)2 $22.86
    
1 Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
2 On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 15

STATEMENT OF OPERATIONS For the year ended 3-31-23

Investment income  
Dividends $245,469,046
Interest 11,105,472
Securities lending 73,359
Less foreign taxes withheld (3,700,822)
Total investment income 252,947,055
Expenses  
Investment management fees 75,209,999
Distribution and service fees 4,333,692
Accounting and legal services fees 1,911,053
Transfer agent fees 8,490,374
Trustees’ fees 263,727
Custodian fees 1,325,447
State registration fees 321,543
Printing and postage 735,815
Professional fees 418,171
Other 366,736
Total expenses 93,376,557
Less expense reductions (959,442)
Net expenses 92,417,115
Net investment income 160,529,940
Realized and unrealized gain (loss)  
Net realized gain (loss) on  
Unaffiliated investments and foreign currency transactions 412,747,947
Affiliated investments 10,676
  412,758,623
Change in net unrealized appreciation (depreciation) of  
Unaffiliated investments and translation of assets and liabilities in foreign currencies (1,257,797,984)
Affiliated investments 2,581
  (1,257,795,403)
Net realized and unrealized loss (845,036,780)
Decrease in net assets from operations $(684,506,840)
16 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS  

  Year ended
3-31-23
Year ended
3-31-22
Increase (decrease) in net assets    
From operations    
Net investment income $160,529,940 $109,334,518
Net realized gain 412,758,623 1,709,466,375
Change in net unrealized appreciation (depreciation) (1,257,795,403) (172,873,157)
Increase (decrease) in net assets resulting from operations (684,506,840) 1,645,927,736
Distributions to shareholders    
From earnings    
Class A (74,200,652) (142,634,076)
Class C (5,309,741) (15,439,022)
Class I (389,166,210) (794,647,089)
Class R2 (3,173,900) (5,966,347)
Class R4 (3,287,805) (7,303,391)
Class R5 (3,734,327) (7,360,008)
Class R6 (268,993,677) (547,655,424)
Class NAV (78,981,499) (188,506,983)
Total distributions (826,847,811) (1,709,512,340)
From fund share transactions 670,486,527 703,591,853
Total increase (decrease) (840,868,124) 640,007,249
Net assets    
Beginning of year 12,917,312,688 12,277,305,439
End of year $12,076,444,564 $12,917,312,688
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 17

Financial highlights
CLASS A SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $24.55 $24.73 $15.18 $20.25 $22.11
Net investment income1 0.24 0.15 0.18 0.30 0.26
Net realized and unrealized gain (loss) on investments (1.63) 3.04 9.65 (4.20) (0.28)
Total from investment operations (1.39) 3.19 9.83 (3.90) (0.02)
Less distributions          
From net investment income (0.23) (0.16) (0.28) (0.25) (0.23)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.44) (3.37) (0.28) (1.17) (1.84)
Net asset value, end of period $21.72 $24.55 $24.73 $15.18 $20.25
Total return (%)2,3 (5.60) 13.42 65.19 (20.99) 0.45
Ratios and supplemental data          
Net assets, end of period (in millions) $1,185 $1,204 $1,037 $731 $1,092
Ratios (as a percentage of average net assets):          
Expenses before reductions 1.02 1.04 1.07 1.07 1.06
Expenses including reductions 1.01 1.03 1.07 1.06 1.05
Net investment income 1.04 0.60 0.94 1.44 1.18
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
3 Does not reflect the effect of sales charges, if any.
18 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

CLASS C SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $22.62 $23.05 $14.17 $18.98 $20.82
Net investment income (loss)1 0.06 (0.04) 0.03 0.13 0.09
Net realized and unrealized gain (loss) on investments (1.49) 2.82 9.00 (3.92) (0.26)
Total from investment operations (1.43) 2.78 9.03 (3.79) (0.17)
Less distributions          
From net investment income (0.06) (0.15) (0.10) (0.06)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.27) (3.21) (0.15) (1.02) (1.67)
Net asset value, end of period $19.92 $22.62 $23.05 $14.17 $18.98
Total return (%)2,3 (6.26) 12.56 63.90 (21.51) (0.35)
Ratios and supplemental data          
Net assets, end of period (in millions) $79 $116 $135 $140 $235
Ratios (as a percentage of average net assets):          
Expenses before reductions 1.77 1.79 1.82 1.82 1.81
Expenses including reductions 1.76 1.78 1.82 1.81 1.80
Net investment income (loss) 0.29 (0.17) 0.19 0.67 0.43
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
3 Does not reflect the effect of sales charges, if any.
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 19

CLASS I SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $23.57 $23.86 $14.65 $19.58 $21.45
Net investment income1 0.28 0.21 0.22 0.34 0.30
Net realized and unrealized gain (loss) on investments (1.55) 2.93 9.32 (4.05) (0.27)
Total from investment operations (1.27) 3.14 9.54 (3.71) 0.03
Less distributions          
From net investment income (0.29) (0.22) (0.33) (0.30) (0.29)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.50) (3.43) (0.33) (1.22) (1.90)
Net asset value, end of period $20.80 $23.57 $23.86 $14.65 $19.58
Total return (%)2 (5.33) 13.73 65.58 (20.77) 0.64
Ratios and supplemental data          
Net assets, end of period (in millions) $5,657 $6,039 $5,618 $5,250 $7,399
Ratios (as a percentage of average net assets):          
Expenses before reductions 0.77 0.79 0.82 0.82 0.82
Expenses including reductions 0.76 0.78 0.82 0.81 0.81
Net investment income 1.29 0.84 1.18 1.69 1.43
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
20 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

CLASS R2 SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $23.53 $23.83 $14.63 $19.57 $21.43
Net investment income1 0.20 0.11 0.15 0.23 0.22
Net realized and unrealized gain (loss) on investments (1.56) 2.93 9.31 (4.03) (0.27)
Total from investment operations (1.36) 3.04 9.46 (3.80) (0.05)
Less distributions          
From net investment income (0.20) (0.13) (0.26) (0.22) (0.20)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.41) (3.34) (0.26) (1.14) (1.81)
Net asset value, end of period $20.76 $23.53 $23.83 $14.63 $19.57
Total return (%)2 (5.73) 13.28 64.94 (21.08) 0.24
Ratios and supplemental data          
Net assets, end of period (in millions) $50 $55 $55 $42 $102
Ratios (as a percentage of average net assets):          
Expenses before reductions 1.16 1.18 1.21 1.21 1.21
Expenses including reductions 1.15 1.17 1.20 1.20 1.20
Net investment income 0.90 0.43 0.80 1.17 1.02
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 21

CLASS R4 SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $23.58 $23.87 $14.65 $19.59 $21.45
Net investment income1 0.25 0.17 0.20 0.30 0.27
Net realized and unrealized gain (loss) on investments (1.57) 2.94 9.32 (4.05) (0.27)
Total from investment operations (1.32) 3.11 9.52 (3.75)
Less distributions          
From net investment income (0.25) (0.19) (0.30) (0.27) (0.25)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.46) (3.40) (0.30) (1.19) (1.86)
Net asset value, end of period $20.80 $23.58 $23.87 $14.65 $19.59
Total return (%)2 (5.52) 13.58 65.34 (20.87) 0.52
Ratios and supplemental data          
Net assets, end of period (in millions) $49 $62 $62 $74 $143
Ratios (as a percentage of average net assets):          
Expenses before reductions 1.01 1.03 1.06 1.06 1.06
Expenses including reductions 0.90 0.92 0.95 0.95 0.95
Net investment income 1.14 0.70 1.06 1.50 1.26
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
22 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

CLASS R5 SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $23.63 $23.91 $14.67 $19.62 $21.48
Net investment income1 0.29 0.23 0.23 0.34 0.31
Net realized and unrealized gain (loss) on investments (1.56) 2.94 9.35 (4.06) (0.26)
Total from investment operations (1.27) 3.17 9.58 (3.72) 0.05
Less distributions          
From net investment income (0.30) (0.24) (0.34) (0.31) (0.30)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.51) (3.45) (0.34) (1.23) (1.91)
Net asset value, end of period $20.85 $23.63 $23.91 $14.67 $19.62
Total return (%)2 (5.31) 13.82 65.67 (20.74) 0.75
Ratios and supplemental data          
Net assets, end of period (in millions) $59 $60 $40 $61 $166
Ratios (as a percentage of average net assets):          
Expenses before reductions 0.71 0.73 0.76 0.76 0.76
Expenses including reductions 0.71 0.72 0.75 0.75 0.75
Net investment income 1.35 0.93 1.24 1.70 1.48
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 23

CLASS R6 SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $23.62 $23.91 $14.67 $19.61 $21.48
Net investment income1 0.31 0.24 0.24 0.36 0.32
Net realized and unrealized gain (loss) on investments (1.56) 2.93 9.35 (4.06) (0.27)
Total from investment operations (1.25) 3.17 9.59 (3.70) 0.05
Less distributions          
From net investment income (0.31) (0.25) (0.35) (0.32) (0.31)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.52) (3.46) (0.35) (1.24) (1.92)
Net asset value, end of period $20.85 $23.62 $23.91 $14.67 $19.61
Total return (%)2 (5.22) 13.82 65.74 (20.66) 0.76
Ratios and supplemental data          
Net assets, end of period (in millions) $3,846 $4,009 $3,844 $3,369 $4,584
Ratios (as a percentage of average net assets):          
Expenses before reductions 0.66 0.68 0.71 0.71 0.71
Expenses including reductions 0.66 0.68 0.71 0.70 0.70
Net investment income 1.40 0.95 1.30 1.81 1.54
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
24 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

CLASS NAV SHARES Period ended 3-31-23 3-31-22 3-31-21 3-31-20 3-31-19
Per share operating performance          
Net asset value, beginning of period $23.63 $23.92 $14.68 $19.62 $21.49
Net investment income1 0.31 0.24 0.25 0.36 0.33
Net realized and unrealized gain (loss) on investments (1.56) 2.93 9.34 (4.06) (0.28)
Total from investment operations (1.25) 3.17 9.59 (3.70) 0.05
Less distributions          
From net investment income (0.31) (0.25) (0.35) (0.32) (0.31)
From net realized gain (1.21) (3.21) (0.92) (1.61)
Total distributions (1.52) (3.46) (0.35) (1.24) (1.92)
Net asset value, end of period $20.86 $23.63 $23.92 $14.68 $19.62
Total return (%)2 (5.20) 13.83 65.71 (20.64) 0.77
Ratios and supplemental data          
Net assets, end of period (in millions) $1,151 $1,372 $1,486 $887 $1,105
Ratios (as a percentage of average net assets):          
Expenses before reductions 0.65 0.68 0.70 0.70 0.70
Expenses including reductions 0.65 0.67 0.70 0.69 0.69
Net investment income 1.40 0.95 1.31 1.83 1.54
Portfolio turnover (%) 43 38 55 88 69
    
1 Based on average daily shares outstanding.
2 Total returns would have been lower had certain expenses not been reduced during the applicable periods.
SEE NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 25

Notes to financial statements
Note 1Organization
John Hancock Disciplined Value Fund (the fund) is a series of John Hancock Funds III (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek to provide long-term growth of capital primarily through investment in equity securities. Current income is a secondary objective.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2, Class R4 and Class R5 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Advisor’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
26 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT  

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, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of March 31, 2023, all investments are categorized as Level 1 under the hierarchy described above.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund may invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT is a prime money market fund and invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. During the existence of the loan, the fund will receive from the borrower amounts equivalent to any dividends, interest or other distributions on the loaned securities, as well as interest on such amounts. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
  ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 27

Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of March 31, 2023, the fund loaned securities valued at $7,317,742 and received $7,476,759 of cash collateral.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $750 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended March 31, 2023, the fund had no borrowings under the line of credit. Commitment fees for the year ended March 31, 2023 were $42,980.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
28 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT  

As of March 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended March 31, 2023 and 2022 was as follows:
  March 31, 2023 March 31, 2022
Ordinary income $176,286,115 $184,269,868
Long-term capital gains 650,561,696 1,525,242,472
Total $826,847,811 $1,709,512,340
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of March 31, 2023, the components of distributable earnings on a tax basis consisted of $28,759,925 of undistributed ordinary income and $304,672,587 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals and treatment of a portion of the proceeds from redemptions as distributions for tax purposes.
Note 3Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.700% of the first $500 million of the fund’s average daily net assets; (b) 0.675% of the next $500 million of the fund’s average daily net assets; (c) 0.650% of the next $500 million of the fund’s average daily net assets; (d) 0.625% of the next $1 billion of the fund’s average daily net assets; (e) 0.600% of the next $10 billion of the fund’s average daily net assets; and (f) 0.575% of the fund’s average daily net assets in excess of $12.5 billion. The Advisor has a subadvisory agreement with Boston Partners Global Investors, Inc., an indirect, wholly owned subsidiary of ORIX Corporation of Japan. The fund is not responsible for payment of the subadvisory fees.
  ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 29

The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended March 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2024, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended March 31, 2023, the expense reductions described above amounted to the following:
Class Expense reduction
Class A $86,174
Class C 7,013
Class I 425,250
Class R2 3,721
Class R4 3,863
Class Expense reduction
Class R5 $4,219
Class R6 288,392
Class NAV 88,487
Total $907,119
 
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended March 31, 2023, were equivalent to a net annual effective rate of 0.60% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended March 31, 2023, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class Rule 12b-1 Fee Service fee
Class A 0.30%
Class C 1.00%
Class R2 0.25% 0.25%
Class R4 0.25% 0.10%
Class R5 0.05%
Currently only 0.25% is charged to Class A shares for Rule 12b-1 fees.
The fund’s Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on July 31, 2023, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $52,323 for Class R4 shares for the year ended March 31, 2023.
30 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT  

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $764,632 for the year ended March 31, 2023. Of this amount, $127,498 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $637,134 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares purchased, including those that are acquired through purchases of $1 million or more, and redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended March 31, 2023, CDSCs received by the Distributor amounted to $13,470 and $3,823 for Class A and Class C shares, respectively.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended March 31, 2023 were as follows:
Class Distribution and service fees Transfer agent fees
Class A $2,924,500 $1,347,019
Class C 949,408 109,527
Class I 6,646,820
Class R2 249,645 4,788
Class R4 181,992 4,971
Class R5 28,147 5,433
Class R6 371,816
Total $4,333,692 $8,490,374
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
  ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 31

Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower
or Lender
Weighted Average
Loan Balance
Days
Outstanding
Weighted Average
Interest Rate
Interest Income
(Expense)
Lender $38,290,909 11 3.589% $41,996
Note 5Fund share transactions
Transactions in fund shares for the years ended March 31, 2023 and 2022 were as follows:
  Year Ended 3-31-23 Year Ended 3-31-22
  Shares Amount Shares Amount
Class A shares        
Sold 11,487,537 $260,789,383 9,714,749 $247,593,735
Distributions reinvested 3,232,754 69,439,558 5,703,557 134,832,091
Repurchased (9,230,692) (208,120,479) (8,331,972) (213,497,612)
Net increase 5,489,599 $122,108,462 7,086,334 $168,928,214
Class C shares        
Sold 540,145 $11,257,476 582,924 $13,606,830
Distributions reinvested 255,062 5,034,920 677,543 14,790,755
Repurchased (1,952,915) (40,475,652) (1,972,814) (46,783,606)
Net decrease (1,157,708) $(24,183,256) (712,347) $(18,386,021)
Class I shares        
Sold 78,536,957 $1,698,598,666 65,886,934 $1,617,962,179
Distributions reinvested 14,783,198 303,794,722 27,751,495 629,403,911
Repurchased (77,508,306) (1,673,382,213) (72,828,360) (1,783,032,506)
Net increase 15,811,849 $329,011,175 20,810,069 $464,333,584
Class R2 shares        
Sold 350,725 $7,554,442 712,517 $17,103,250
Distributions reinvested 130,818 2,686,996 213,199 4,831,085
Repurchased (415,824) (8,986,710) (914,343) (22,767,623)
Net increase (decrease) 65,719 $1,254,728 11,373 $(833,288)
Class R4 shares        
Sold 365,406 $7,960,704 1,047,552 $25,667,362
Distributions reinvested 159,835 3,287,805 321,877 7,303,391
Repurchased (783,372) (17,255,440) (1,343,465) (32,808,860)
Net increase (decrease) (258,131) $(6,006,931) 25,964 $161,893
32 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT  

  Year Ended 3-31-23 Year Ended 3-31-22
  Shares Amount Shares Amount
Class R5 shares        
Sold 605,864 $13,215,144 1,123,572 $28,566,813
Distributions reinvested 180,756 3,723,568 323,802 7,360,008
Repurchased (506,554) (11,099,083) (577,470) (14,368,896)
Net increase 280,066 $5,839,629 869,904 $21,557,925
Class R6 shares        
Sold 38,201,528 $836,424,332 40,338,709 $1,001,352,142
Distributions reinvested 11,897,340 244,966,235 22,054,696 501,082,696
Repurchased (35,301,198) (766,137,436) (53,460,780) (1,316,599,662)
Net increase 14,797,670 $315,253,131 8,932,625 $185,835,176
Class NAV shares        
Sold 2,897,018 $61,504,415 2,095,577 $52,158,633
Distributions reinvested 3,834,053 78,981,499 8,293,312 188,506,983
Repurchased (9,597,497) (213,276,325) (14,445,593) (358,671,246)
Net decrease (2,866,426) $(72,790,411) (4,056,704) $(118,005,630)
Total net increase 32,162,638 $670,486,527 32,967,218 $703,591,853
Affiliates of the fund owned 87% of shares of Class NAV on March 31, 2023. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $5,154,587,527 and $5,229,634,768, respectively, for the year ended March 31, 2023.
Note 7Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At March 31, 2023, funds within the John Hancock group of funds complex held 8.0% of the fund’s net assets. There were no individual affiliated funds with an ownership of 5% or more of the fund’s net assets.
Note 8Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
              Dividends and distributions
Affiliate Ending
share
amount
Beginning
value
Cost of
purchases
Proceeds
from shares
sold
Realized
gain
(loss)
Change in
unrealized
appreciation
(depreciation)
Income
distributions
received
Capital gain
distributions
received
Ending
value
John Hancock Collateral Trust* 749,311 $331,724,610 $(324,247,077) $10,676 $2,581 $73,359 $7,490,790
    
  ANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund 33

* Refer to the Securities lending note within Note 2 for details regarding this investment.
34 JOHN HANCOCK Disciplined Value Fund | ANNUAL REPORT  

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds III and Shareholders of John Hancock Disciplined Value Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Disciplined Value Fund (one of the funds constituting John Hancock Funds III, referred to hereafter the "Fund") as of March 31, 2023, the related statement of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2023 and the financial highlights for each of the five years in the period ended March 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
May 4, 2023
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
  ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND 35

Tax information
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended March 31, 2023.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund paid $683,448,725 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2023 Form 1099-DIV in early 2024. This will reflect the tax character of all distributions paid in calendar year 2023.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
36 JOHN HANCOCK DISCIPLINED VALUE FUND | ANNUAL REPORT  

STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT

Operation of the Liquidity Risk Management Program
This section describes the operation and effectiveness of the Liquidity Risk Management Program (LRMP) established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule). The Board of Trustees (the Board) of each Fund in the John Hancock Group of Funds (each a Fund and collectively, the Funds) that is subject to the requirements of the Liquidity Rule has appointed John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (together, the Advisor) to serve as Administrator of the LRMP with respect to each of the Funds, including John Hancock Disciplined Value Fund, subject to the oversight of the Board. In order to provide a mechanism and process to perform the functions necessary to administer the LRMP, the Advisor established the Liquidity Risk Management Committee (the Committee). The Fund’s subadvisor, Boston Partners Global Investors, Inc. (the Subadvisor) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the LRMP, subject to the supervision of the Advisor and the Board.
The Committee receives monthly reports and holds quarterly in person meetings to: (1) review the day-to-day operations of the LRMP; (2) monitor current market and liquidity conditions and assess liquidity risks; (3) review and approve month-end liquidity classifications; (4) monitor illiquid investment levels against the 15% limit on illiquid investments and established Highly Liquid Investment Minimums (HLIMs), if any; (5) review quarterly testing and determinations, as applicable; (6) review redemption-in-kind activities; and (7) review other LRMP related material. The Advisor also conducts daily, monthly, quarterly, and annual quantitative and qualitative assessments of each subadvisor to a Fund that is subject to the requirements of the Liquidity Rule and is a part of the LRMP to monitor investment performance issues, risks and trends. In addition, the Advisor may conduct ad-hoc reviews and meetings with subadvisors as issues and trends are identified, including potential liquidity issues. The Committee also monitors global events, such as the ongoing Russian invasion of Ukraine and related U.S. imposed sanctions on the Russian government, companies and oligarchs, and other amendments to the Office of Foreign Assets Control sanctioned company lists, that could impact the markets and liquidity of portfolio investments and their classifications. In addition, the Committee monitors macro events and assesses their potential impact on liquidity brought on by fear of contagion (e.g. regional banking crisis).
The Committee provided the Board at a meeting held on March 28-30, 2023 with a written report which addressed the Committee’s assessment of the adequacy and effectiveness of the implementation and operation of the LRMP and any material changes to the LRMP. The report, which covered the period January 1, 2022 through December 31, 2022, included an assessment of important aspects of the LRMP including, but not limited to: (1) Security-level liquidity classifications; (2) Fund-level liquidity risk assessment; (3) Reasonably Anticipated Trade Size (RATS) determination; (4) HLIM determination and daily monitoring; (5) Daily compliance with the 15% limit on illiquid investments; (6) Operation of the Fund’s Redemption-In-Kind Procedures; and (7) Review of liquidity management facilities.
The report provided an update on Committee activities over the previous year. Additionally, the report included a discussion of notable changes and enhancements to the LRMP implemented during 2022 and key initiatives for 2023.
The report also covered material liquidity matters which occurred or were reported during this period applicable to the Fund, if any, and the Committee’s actions to address such matters.
The report stated, in relevant part, that during the period covered by the report:
The Fund’s investment strategy remained appropriate for an open-end fund structure;
The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund;
  ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND