N-Q 1 a_currentinterest.htm JOHN HANCOCK CURRENT INTEREST a_currentinterest.htm
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
FORM N-Q 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED 
MANAGEMENT INVESTMENT COMPANIES 
 
Investment Company Act file number 811- 2485 
 
John Hancock Current Interest 
(Exact name of registrant as specified in charter) 
 
601 Congress Street, Boston, Massachusetts 02210 
(Address of principal executive offices) (Zip code) 
 
Salvatore Schiavone, Treasurer 
 
601 Congress Street 
Boston, Massachusetts 02210 
 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: 617-663-4497 
 
Date of fiscal year end:  March 31 
 
Date of reporting period:  December 31, 2010 

 

ITEM 1. SCHEDULE OF INVESTMENTS




Money Market Fund
As of 12-31-10 (Unaudited)

Description  Yield* (%)  Par value  Value 
 
Commercial Paper 57.88%      $248,219,379 
(Cost $248,219,379)       
 
American Honda Finance Corp.       
01/05/11  0.200  16,000,000  15,999,644 
Bank of America Corp.       
01/03/11  0.270  15,000,000  14,999,775 
Bank of Nova Scotia       
01/03/11  0.140  20,000,000  19,999,844 
CAFCO LLC       
02/02/11  0.270  20,000,000  19,995,200 
Credit Suisse USA, Inc.       
01/05/11  0.230  15,000,000  14,999,617 
Govco LLC       
01/25/11 to 03/15/11  0.270 to 0.300  20,000,000  19,989,975 
JPMorgan Chase & Company       
01/03/11  0.010  21,000,000  20,999,988 
Jupiter Securitization Company LLC       
01/27/11  0.230  21,000,000  20,996,512 
Nestle Capital Corp.       
01/03/11  0.050  20,000,000  19,999,944 
Old Line Funding LLC       
03/02/11  0.270  20,251,000  20,241,887 
Procter & Gamble International Funding SCA       
01/13/11  0.170  20,000,000  19,998,867 
Societe Generale North America, Inc.       
01/04/11 to 01/14/11  0.250 to 0.300  20,000,000  19,998,654 
UBS Finance (Delaware) LLC       
01/06/11  0.190  20,000,000  19,999,472 
  
Corporate Interest-Bearing Obligations 20.21%    $86,678,110 
(Cost $86,678,110)       
 
Bank of America NA (P)       
01/27/11  0.361  5,000,000  5,000,000 
Caterpillar Financial Services Corp. (P)       
06/24/11  1.053  3,450,000  3,463,413 
Credit Suisse USA, Inc.       
11/15/11  6.125  2,070,000  2,166,823 
Credit Suisse USA, Inc. (P)       
03/02/11  0.490  1,000,000  1,000,326 
John Deere Capital Corp. (P)       
01/18/11  0.989  3,990,000  3,991,362 
John Deere Capital Corp.       
10/17/11  5.400  3,500,000  3,636,668 
Morgan Stanley       
01/21/11 to 04/15/11  5.050 to 6.750  16,321,000  16,433,556 
Morgan Stanley (P)       
01/18/11  0.539  1,745,000  1,745,040 
The Goldman Sachs Group, Inc.       
01/15/11 to 01/15/11  5.000 to 6.875  18,847,000  18,888,393 
Toyota Motor Credit Corp. (P)       
01/10/11  0.263  15,000,000  15,000,000 
Toyota Motor Credit Corp.       
05/18/11  5.450  5,215,000  5,314,541 
Wells Fargo & Company       
01/12/11 to 08/26/11  4.875 to 5.300  6,000,000  6,037,988 

 

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Money Market Fund
As of 12-31-10 (Unaudited)

Maturity Date  Yield* (%)  Par value    Value 
 
Corporate Interest-Bearing Obligations (continued)       
Westpac Securities NZ, Ltd.         
01/21/11  0.341  4,000,000    $4,000,000 
 
U.S. Government & Agency Obligations 19.60%      $84,025,608 
(Cost $84,025,608)         
 
Bank of America Corp.(J)(P)         
04/30/12 to 06/22/12  0.503 to 0.588  14,000,000    14,000,000 
Citigroup Funding, Inc. (J)(P)         
03/30/12  0.603  2,000,000    2,000,000 
Federal Agricultural Mortgage Corp. (S)         
01/14/11  4.875  4,000,000    4,006,493 
Federal Home Loan Bank         
12/23/11  0.500  5,000,000    5,000,000 
General Electric Capital Corp.(J)(P)         
03/11/11 to 03/12/12  0.382 to 0.502  7,000,000    7,000,000 
JPMorgan Chase & Company(J)(P)         
02/23/11 to 12/26/12  0.364 to 0.553  16,000,000    16,010,089 
Morgan Stanley(J)(P)         
02/10/12 to 06/20/12  0.502 to 0.654  15,000,000    15,000,000 
The Goldman Sachs Group, Inc.(J)(P)         
11/09/11 to 03/15/12  0.502 to 0.536  12,000,000    12,009,026 
The Huntington National Bank (J)(P)         
06/01/12  0.696  7,000,000    7,000,000 
Union Bank NA (J)(P)         
03/16/12  0.502  2,000,000    2,000,000 
 
      Par value  Value 
 
Repurchase Agreement 0.91%        $3,900,000 
(Cost $3,900,000)         
 
Repurchase Agreement with State Street Corp. dated 12-31-10 at       
0.010% to be repurchased at $3,900,003 on 01-03-11, collateralized       
by $3,565,000 Federal Home Loan Mortgage Corp., 4.500% due       
01-15-14 (valued at $3,979,431, including interest)    3,900,000  3,900,000 
 
Total investments (Cost $422,823,097)† 98.60%      $422,823,097 
 
Other assets and liabilities, net 1.40%        $6,004,313 
 
Total net assets 100.00%        $428,827,410 

 

The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.

* Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.

(J) These securities are issued under the Temporary Liquidity Guarantee and are insured by the Federal Deposit Insurance Corporation until the earlier of the maturity date or 6-30-12. These securities amounted to $75,019,115 or 17.50% of the Fund's net assets as of 12-31-10.

(P) Variable rate obligation. Securities reset coupon rates periodically. The coupon rate shown represents the rate at period end.

(S) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration.

† At 12-31-10, the aggregate cost of investment securities for federal income tax purposes was $422,823,097.

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Notes to the Schedule of Investments (Unaudited)

Security valuation. Securities in the Fund’s portfolio are valued at amortized cost, in accordance with Rule 2a-7 of the 1940 Act, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the security to the Fund. The Fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, all investments are categorized as Level 2 under the hierarchy described above. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the period ended December 31, 2010, there were no significant transfers in or out of Level 2 assets.

Repurchase agreements. The Fund may enter into repurchase agreements. When a Fund enters into a repurchase agreement, it receives collateral which is held in a segregated account by the Fund’s custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline.

For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

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ITEM 2. CONTROLS AND PROCEDURES.

(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 3. EXHIBITS.

Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.


SIGNATURES 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

John Hancock Current Interest

By: /s/ Keith F. Hartstein
      Keith F. Hartstein
      President and Chief Executive Officer

Date: February 24, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Keith F. Hartstein
      Keith F. Hartstein
      President and Chief Executive Officer

Date: February 24, 2011

By: /s/ Charles A. Rizzo
      Charles A. Rizzo
      Chief Financial Officer

Date: February 24, 2011