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ITEM 1. SCHEDULE OF INVESTMENTS John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust John Hancock Income Securities Trust The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common shareholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 4186
John Hancock Income Securities Trust
(Exact name of registrant as specified in charter)
601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Salvatore Schiavone, Treasurer
601 Congress Street
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4497
Date of fiscal year end:
October 31
Date of reporting period:
January 31, 2010
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Corporate Bonds 97.13%
$154,584,716
(Cost $149,561,483)
Consumer Discretionary 10.01%
15,933,591
Auto Components 0.80 %
Allison Transmission, Inc.,
Gtd Sr Note (S)(Z)
11.000%
11/01/15
$485,000
$511,675
Exide Technologies,
Sr Sec Note, Series B (Z)
10.500
03/15/13
445,000
453,900
Tenneco, Inc.,
Gtd Sr Sub Note (Z)
8.625
11/15/14
320,000
315,200
Hotels, Restaurants & Leisure 2.82 %
Arcos Dorados BV,
Gtd Sr Note (S)
7.500
10/01/19
265,000
264,338
Chukchansi Economic Development Authority,
Sr Note (S)(Z)
8.000
11/15/13
460,000
374,900
Greektown Holdings LLC,
Sr Note (H)(S)(Z)
10.750
12/01/13
1,015,000
121,800
Jacobs Entertainment, Inc.,
Gtd Sr Note (Z)
9.750
06/15/14
600,000
561,000
Little Traverse Bay Bands of Odawa Indians,
Sr Note (H)(S)(Z)
10.250
02/15/14
500,000
125,000
MTR Gaming Group, Inc.,
Gtd Sr Sec Note (S)
12.625
07/15/14
175,000
171,938
Gtd Sr Sub Note, Series B (Z)
9.000
06/01/12
390,000
319,800
Seminole Indian Tribe of Florida,
Sr Sec Bond (S)(Z)
6.535
10/01/20
650,000
594,406
Turning Stone Resort Casino Enterprises,
Sr Note (S)(Z)
9.125
09/15/14
1,540,000
1,501,500
Waterford Gaming LLC,
Sr Note (S)(Z)
8.625
09/15/14
290,000
165,300
Yonkers Racing Corp.,
Sr Sec Note (S)
11.375
07/15/16
280,000
294,700
Household Durables 0.54 %
Libbey Glass, Inc. (S)
10.000
02/15/15
95,000
95,475
Whirlpool Corp.,
Sr Note (Z)
8.600
05/01/14
335,000
386,682
Sr Note (Z)
8.000
05/01/12
335,000
370,378
Media 5.21 %
AMC Entertainment, Inc.,
Sr Note
8.750
06/01/19
125,000
129,375
Cablevision Systems Corp.,
Sr Note (S)
8.625
09/15/17
135,000
139,725
Canadian Satellite Radio Holdings, Inc.,
Gtd Sr Note (Z)
12.750
02/15/14
979,000
597,190
CCH II LLC,
Sr Notes (S)
13.500
11/30/16
306,006
364,912
Cinemark USA, Inc.,
Gtd Sr Note
8.625
06/15/19
180,000
187,650
Comcast Cable Holdings LLC,
Sr Note (Z)
9.800
02/01/12
1,500,000
1,708,419
CSC Holdings, Inc.,
Sr Note (Z)
7.875
02/15/18
390,000
406,575
2
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Consumer Discretionary (continued)
DirecTV Holdings LLC,
Gtd Sr Note (Z)
7.625%
05/15/16
$350,000
$383,250
Gtd Sr Note (S)
4.750
10/01/14
280,000
292,005
Grupo Televisa SA,
Sr Bond (S)
6.625
01/15/40
290,000
294,011
News America Holdings, Inc.,
Gtd Note (Z)
7.750
01/20/24
1,020,000
1,208,837
Gtd Note (Z)
7.600
10/11/15
1,000,000
1,172,126
News America, Inc.,
Gtd Sr Note
6.900
03/01/19
205,000
235,107
Nexstar Broadcasting, Inc.,
Gtd Note PIK (S)(Z)
7.000
01/15/14
254,724
203,779
Nexstar Finance, Inc.,
Sr Sub Note (Z)
7.000
01/15/14
84,000
67,200
Regal Cinemas Corp.,
Gtd Sr Note
8.625
07/15/19
115,000
118,738
Time Warner Cable, Inc.,
Gtd Sr Note (Z)
6.750
07/01/18
605,000
673,908
XM Satellite Radio, Inc.,
Sr Sec Note (S)
11.250
06/15/13
100,000
107,000
Specialty Retail 0.38 %
Staples, Inc.,
Sr Note (Z)
9.750
01/15/14
500,000
609,929
Textiles, Apparel & Luxury Goods 0.26 %
Burlington Coat Factory Warehouse Corp.,
Gtd Sr Note
11.125
04/15/14
395,000
405,863
Consumer Staples 6.85%
10,904,400
Beverages 2.36 %
Anheuser-Busch InBev Worldwide, Inc.,
Gtd Sr Note (S)
5.375
01/15/20
250,000
256,410
Gtd Sr Note (S)(Z)
4.125
01/15/15
1,000,000
1,027,548
Miller Brewing Company,
Gtd Note (S)(Z)
5.500
08/15/13
1,365,000
1,471,295
PepsiCo, Inc.,
Sr Note (Z)
7.900
11/01/18
395,000
489,109
SABMiller PLC,
Sr Note (S)(Z)
6.500
07/15/18
465,000
515,619
Food & Staples Retailing 0.58 %
CVS Caremark Corp.,
Jr Sub Bond (6.302% to 6-1-12 then 3 month LIBOR +
206.5 bps) (Z)
6.302
06/01/37
990,000
920,700
Food Products 1.51 %
Bunge Ltd. Finance Corp.,
Gtd Sr Note
8.500
06/15/19
210,000
246,500
Gtd Sr Note (Z)
5.350
04/15/14
1,040,000
1,088,673
Kraft Foods, Inc.,
Sr Note (Z)
6.000
02/11/13
685,000
743,778
Smithfield Foods, Inc.,
Gtd Sr Sec Note (S)
10.000
07/15/14
300,000
326,625
3
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Consumer Staples (continued)
Household Products 0.29 %
Yankee Acquisition Corp.,
Gtd Sr Sub Note (Z)
8.500%
02/15/15
$455,000
$455,000
Tobacco 2.11 %
Alliance One International, Inc.,
Gtd Sr Note (Z)
8.500
05/15/12
245,000
248,675
Sr Note (S)(Z)
10.000
07/15/16
1,000,000
1,060,000
Altria Group, Inc.,
Gtd Sr Note (Z)
8.500
11/10/13
800,000
944,510
Reynolds American, Inc.,
Sr Sec Note (Z)
7.250
06/01/13
1,000,000
1,109,958
Energy 11.57%
18,413,813
Energy Equipment & Services 1.87 %
CalEnergy Company, Inc.,
Sr Bond (Z)
8.480
09/15/28
550,000
701,060
Gibson Energy ULC (S)
10.000
01/15/18
265,000
261,688
NGPL Pipeco LLC,
Sr Note (S)(Z)
7.119
12/15/17
1,580,000
1,794,436
Petrobras International Finance Company,
Gtd Sr Note
5.750
01/20/20
215,000
212,606
Oil, Gas & Consumable Fuels 9.70 %
Arch Coal, Inc.,
Sr Note (S)
8.750
08/01/16
100,000
106,500
ConocoPhillips,
Gtd Note (Z)
4.400
05/15/13
1,000,000
1,071,739
Drummond Company, Inc.,
Sr Note
7.375
02/15/16
290,000
284,925
Energy Transfer Partners LP,
Sr Note (Z)
9.700
03/15/19
330,000
419,853
Sr Note (Z)
8.500
04/15/14
1,000,000
1,173,988
Enterprise Products Operating LLC,
Gtd Jr Sub Note (7.000% to 6-1-17 then 3 month LIBOR
+ 277.75 bps) (Z)
7.000
06/01/67
695,000
632,450
Gtd Jr Sub Note (7.034% to 1-15-18 then greater of
7.034% and 3 month LIBOR + 268 bps) (Z)
7.034
01/15/68
590,000
557,550
Gulf South Pipeline Company LP,
Sr Note (S)(Z)
5.750
08/15/12
1,000,000
1,067,009
Kinder Morgan Energy Partners LP,
Sr Bond (Z)
9.000
02/01/19
505,000
642,722
Sr Bond (Z)
7.750
03/15/32
195,000
226,668
MarkWest Energy Partners LP,
Gtd Sr Note, Series B (Z)
8.500
07/15/16
545,000
557,263
McMoRan Exploration Company,
Gtd Sr Note (Z)
11.875
11/15/14
340,000
370,600
Motiva Enterprises LLC (S)
6.850
01/15/40
280,000
302,205
Nustar Logistics LP,
Gtd Sr Note
7.650
04/15/18
845,000
956,961
ONEOK Partners LP,
Gtd Sr Note (Z)
6.150
10/01/16
705,000
775,174
Petro-Canada,
Debenture (Z)
9.250
10/15/21
1,000,000
1,309,160
Sr Note (Z)
6.050
05/15/18
400,000
435,834
4
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Energy (continued)
Petroleos Mexicanos,
Gtd Note (S)(Z)
4.875%
03/15/15
$490,000
$493,675
Plains All American Pipeline LP,
Sr Note (Z)
4.250
09/01/12
600,000
627,746
Regency Energy Partners LP,
Sr Note (S)(Z)
9.375
06/01/16
280,000
303,450
Spectra Energy Capital LLC,
Gtd Sr Note
6.200
04/15/18
1,000,000
1,086,806
Williams Partners Finance Corp.,
Gtd Sr Note (Z)
7.250
02/01/17
1,265,000
1,417,875
Woodside Finance, Ltd.,
Note (S)(Z)
4.500
11/10/14
605,000
623,870
Financials 34.47%
54,857,097
Capital Markets 4.20 %
Charles Schwab Corp.,
Sr Note (Z)
4.950
06/01/14
900,000
961,507
Goldman Sachs Group, Inc.,
Sr Note (Z)
7.500
02/15/19
485,000
562,153
Sr Note (Z)
5.125
01/15/15
760,000
800,223
Jefferies Group, Inc.,
Sr Note (Z)
7.750
03/15/12
490,000
535,993
Macquarie Group, Ltd.,
Sr Note (S)(Z)
7.300
08/01/14
270,000
299,204
Sr Note (S)
6.000
01/14/20
340,000
336,009
Morgan Stanley Company,
Series GMTN
4.100
01/26/15
500,000
497,356
Sr Note (Z)
7.300
05/13/19
485,000
547,888
Sr Note (Z)
5.375
10/15/15
1,000,000
1,056,392
Northern Trust Company,
Sub Note (Z)
6.500
08/15/18
225,000
254,364
Northern Trust Corp.,
Sr Note (Z)
4.625
05/01/14
370,000
399,022
TD Ameritrade Holding Corp.,
Gtd Note (Z)
5.600
12/01/19
435,000
439,687
Commercial Banks 5.86 %
Australia & New Zealand Banking Group, Ltd.,
Sr Notes (S)
5.100
01/13/20
435,000
439,722
Bank of Nova Scotia,
Sr Note
3.400
01/22/15
1,000,000
1,013,803
Barclays Bank PLC,
Jr Sub Note (6.860% to 6-15-32 then 6 month LIBOR +
173 bps) (S)(Z)
6.860
01/22/15
1,655,000
1,381,925
Groupe BPCE SA,
Sub Bond (12.500% to 9-30-19 then 3 month LIBOR +
12.98%) (S)
12.500
08/29/49
330,000
397,432
Chuo Mitsui Trust & Banking Company, Ltd.,
Jr Sub Note (5.506% to 4-15-15 then 3 month LIBOR +
249 bps) (S)(Z)
5.506
12/29/49
940,000
918,465
Credit Suisse New York,
Sr Note (Z)
5.300
08/13/19
415,000
426,635
Mizuho Financial Group, Ltd.,
Gtd Sub Bond
8.375
01/29/49
260,000
260,650
Regions Financial Corp. (Z)
7.750
11/10/14
1,000,000
1,033,303
5
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Financials (continued)
Santander Issuances S.A. Unipersonal,
Sub Note (6.50 to 8-11-14 then 3 month LIBOR + 392
bps) (S)(Z)
6.500%
08/11/19
$1,200,000
$1,258,184
Sovereign Capital Trust VI,
Gtd Note (Z)
7.908
06/13/36
480,000
447,938
Wachovia Bank NA,
Sub Note (Z)
5.850
02/01/37
390,000
373,192
Sub Note Series BKNT (Z)
6.600
01/15/38
325,000
343,975
Wells Fargo Bank NA,
Sub Bonds (Z)
5.750
05/16/16
450,000
474,728
Westpac Banking Corp.,
Sr Note (Z)
4.875
11/19/19
565,000
562,178
Consumer Finance 3.69 %
American Express Credit Company,
Sr Note, Series C (Z)
7.300
08/20/13
670,000
761,218
Capital One Financial Corp.,
Sr Note (Z)
7.375
05/23/14
990,000
1,133,216
Sr Note (Z)
6.750
09/15/17
1,000,000
1,103,651
Discover Financial Services,
Sr Note
10.250
07/15/19
585,000
698,512
Ford Motor Credit Company LLC,
Sr Note (Z)
8.000
12/15/16
140,000
140,830
Sr Note
7.500
08/01/12
90,000
91,176
Nelnet, Inc.,
Note (7.400% to 9-29-11 then 3 month LIBOR + 337.5
bps) (Z)
7.400
09/29/36
715,000
552,332
Nissan Motor Acceptance Corp.
4.500
01/30/15
1,000,000
1,004,078
SLM Corp.,
Sr Note Series MTN (Z)
8.450
06/15/18
395,000
387,100
Diversified Financial Services 10.73 %
American Honda Finance Corp.,
Note (S)(Z)
7.625
10/01/18
655,000
759,761
Astoria Depositor Corp.,
Series B (S)
8.144
05/01/21
1,000,000
900,000
Bear Stearns Companies, Inc.,
Sr Note (Z)
7.250
02/01/18
1,000,000
1,146,781
Beaver Valley Funding,
Sec Lease Obligation Bond (Z)
9.000
06/01/17
598,000
655,504
Bosphorus Financial Services, Ltd.,
Sec Floating Rate Note (S)(Z)
2.073
02/15/12
281,250
268,846
Citigroup, Inc.,
Sr Note (Z)
6.375
08/12/14
810,000
859,519
Sr Note (Z)
6.125
11/21/17
1,935,000
1,956,964
Sr Note (Z)
5.850
12/11/34
300,000
269,308
CME Group, Inc.,
Sr Note (Z)
5.750
02/15/14
1,000,000
1,103,177
ERAC USA Finance Company,
Gtd Sr Note (S)(Z)
6.375
10/15/17
465,000
507,838
ESI Tractebel Acquisition Corp.,
Gtd Sec Bond Series B (Z)
7.990
12/30/11
546,000
546,697
General Electric Capital Corp.,
Sr Note Series GMTN (Z)
6.000
08/07/19
335,000
346,753
6
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Financials (continued)
Harley-Davidson Funding Corp.,
Gtd Sr Note (S)(Z)
5.750%
12/15/14
$290,000
$304,918
Series C (S)
6.800
06/15/18
300,000
312,397
Hyundai Capital Services,
Sr Note (S)(Z)
6.000
05/05/15
430,000
457,003
JPMorgan Chase & Company,
Jr Sub Note, Series I (7.900% to 4-30-18 then 3 month
LIBOR + 347 bps) (Z)
7.900
04/29/49
655,000
670,923
Sr Note (Z)
4.650
06/01/14
590,000
621,284
Sr. Bond (Z)
6.000
01/15/18
765,000
826,526
Merrill Lynch & Company, Inc.,
Sr Note, Series MTN (Z)
6.150
04/25/13
1,000,000
1,081,901
Sub Notes (Z)
7.750
05/14/38
495,000
544,582
PNC Funding Corp.,
Gtd Sr Note (Z)
4.250
09/21/15
695,000
720,748
SMFG Preferred Capital,
Sub Bond (6.078% to 1-25-17 then 6 month LIBOR + 205
bps) (S)
6.078
01/29/49
590,000
561,603
USB Realty Corp.,
Perpetual Bond (6.091% to 1-15-12 then 3 month LIBOR
+ 114.7 bps) (S)(Z)
6.091
12/29/49
800,000
614,000
Volvo Treasury AB, Gtd Sr Note
5.950
04/01/15
555,000
587,781
Voto-Votorantim Overseas Trading Operations NV,
Gtd Sr Note (S)
6.625
09/25/19
450,000
445,500
Insurance 6.09 %
Aflac, Inc.,
Sr Note (Z)
8.500
05/15/19
335,000
392,324
Sr Note (Z)
6.900
12/17/39
230,000
230,368
CNA Financial Corp.,
Sr Note
7.350
11/15/19
320,000
335,275
Sr Note (Z)
6.500
08/15/16
825,000
846,847
Horace Mann Educators Corp.,
Sr Note (Z)
6.850
04/15/16
395,000
401,298
Liberty Mutual Group, Inc.,
Bond (S)(Z)
7.300
06/15/14
750,000
793,961
Gtd Bond (S)(Z)
7.800
03/15/37
705,000
606,300
Gtd Bond (S)(Z)
7.500
08/15/36
885,000
844,944
Lincoln National Corp.,
Jr Sub Bond (6.050% to 4-20-17 then 3 month LIBOR +
204 bps) (Z)
6.050
04/20/67
250,000
190,625
Sr Note (Z)
8.750
07/01/19
510,000
619,788
Massachusetts Mutual Life Insurance Company,
Sub Note (S)
8.875
06/01/39
210,000
271,573
MetLife, Inc.,
Sr Note (Z)
6.750
06/01/16
335,000
383,535
New York Life Insurance Company,
Sub Note (S)(Z)
6.750
11/15/39
540,000
581,571
Progressive Corp.,
Sub Debenture (6.700% to 6-15-17 then 3 month LIBOR
+ 201.75 bps) (Z)
6.700
06/15/37
330,000
303,600
Prudential Financial, Inc.,
Sr Note MTN, Series D
7.375
06/15/19
210,000
241,786
QBE Insurance Group, Ltd.,
Sr Note (S)(Z)
9.750
03/14/14
486,000
555,160
7
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Financials (continued)
Teachers Insurance & Annuity Association of America,
Notes (S)(Z)
6.850%
12/16/39
$605,000
$652,051
Unum Group,
Sr Note
7.125
09/30/16
390,000
418,076
UnumProvident Finance Company PLC,
Gtd Sr Debenture (S)(Z)
6.850
11/15/15
605,000
646,219
W.R. Berkley Corp.,
Sr Note (Z)
5.600
05/15/15
365,000
372,210
Real Estate Investment Trusts 3.90 %
AMB Property L.P.,
Gtd Note (Z)
6.625
12/01/19
490,000
506,648
Boston Properties LP,
Sr Note
5.875
10/15/19
265,000
275,929
Brandywine Operating Partnership LP,
Gtd Sr Note (Z)
7.500
05/15/15
345,000
364,706
Dexus Property Group,
Gtd Note (S)(Z)
7.125
10/15/14
495,000
525,592
Duke Realty LP,
Sr Note (Z)
8.250
08/15/19
500,000
555,786
Health Care REIT, Inc.,
Sr Note (Z)
6.200
06/01/16
505,000
518,931
Healthcare Realty Trust, Inc.,
Sr Note (Z)
8.125
05/01/11
175,000
185,655
Sr Note (Z)
6.500
01/17/17
540,000
563,675
HRPT Properties Trust,
Sr Note (Z)
6.650
01/15/18
285,000
283,426
Mack-Cali Realty Corp.,
Sr Note (Z)
7.750
08/15/19
330,000
367,398
ProLogis,
Sr Note (Z)
6.625
05/15/18
605,000
613,771
Sr Note (Z)
5.625
11/15/15
385,000
385,451
Simon Property Group LP,
Sr Note (Z)
10.350
04/01/19
345,000
449,252
WEA Finance LLC,
Gtd Sr Note (S)
6.750
09/02/19
290,000
315,371
Gtd Sr Note (S)(Z)
5.400
10/01/12
275,000
293,640
Health Care 3.84%
6,113,403
Health Care Equipment & Supplies 1.16 %
Covidien International Finance SA,
Gtd Sr Note (Z)
5.450
10/15/12
930,000
1,023,184
Hospira, Inc.,
Sr Note (Z)
6.050
03/30/17
485,000
524,911
Inverness Medical Innovations, Inc.,
Sr Note (S)
7.875
02/01/16
305,000
299,663
Health Care Providers & Services 2.34 %
CIGNA Corp.,
Sr Note (Z)
6.375
10/15/11
640,000
683,754
Express Scripts, Inc.,
Sr Note (Z)
6.250
06/15/14
935,000
1,047,885
Medco Health Solutions, Inc.,
Sr Note (Z)
7.250
08/15/13
850,000
969,835
8
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Health Care (continued)
Sun Healthcare Group, Inc.,
Gtd Sr Sub Note (Z)
9.125%
04/15/15
$1,000,000
$1,025,000
Pharmaceuticals 0.34 %
Catalent Pharma Solutions, Inc., Gtd Sr Note
9.500
04/15/15
105,000
98,175
Watson Pharmaceuticals, Inc.,
Sr Note (Z)
6.125
08/15/19
415,000
440,996
Industrials 7.93%
12,622,516
Aerospace & Defense 0.24 %
Embraer Overseas, Ltd.,
Gtd Sr Note (Z)
6.375
01/15/20
380,000
378,100
Airlines 2.47 %
Continental Airlines, Inc.,
Pass Thru Ctf, Series 1991-1, Class A (Z)
6.545
02/02/19
278,199
278,199
Pass Thru Ctf, Series 1998-1, Class A
6.648
09/15/17
172,260
167,092
Pass Thru Ctf, Series 2000-2, Class B (Z)
8.307
04/02/18
365,717
340,116
Pass Thru Ctf, Series 2001-1, Class C (Z)
7.033
06/15/11
93,863
88,701
Delta Air Lines, Inc.,
Pass Thru Ctf, Series 2002-1, Class G-1
6.718
01/02/23
442,955
403,089
Series 2007-1 Class A (Z)
6.821
08/10/22
704,658
688,804
Sr Note (S)
9.500
09/15/14
360,000
375,300
Northwest Airlines, Inc.,
Gtd Note, Series 2007-1, Class A (Z)
7.027
11/01/19
436,769
384,357
Series 2002-1
6.264
11/20/21
564,758
516,754
United Air Lines, Inc.,
Gtd Note
10.400
11/01/16
195,000
210,113
Gtd Note (Z)
9.750
01/15/17
455,000
477,750
Commercial Services & Supplies 0.10 %
ACCO Brands Corp.,
Gtd Sr Note (S)
10.625
03/15/15
80,000
87,600
The Geo Group, Inc.,
Gtd Sr Note (S)
7.750
10/15/17
70,000
71,400
Electrical Equipment 0.13 %
Coleman Cable, Inc.,
Sr Notes (S)
9.000
02/15/18
205,000
202,438
Industrial Conglomerates 0.64 %
Hutchison Whampoa International, Ltd.,
Gtd Note (S)(Z)
5.750
09/11/19
615,000
623,611
Gtd Sr Note (S)(Z)
6.500
02/13/13
365,000
403,492
Machinery 1.45 %
Case New Holland, Inc.,
Gtd Sr Note (S)(Z)
7.750
09/01/13
335,000
344,213
Ingersoll-Rand Global Holding Company, Ltd.,
Gtd Note (Z)
6.875
08/15/18
545,000
612,850
Gtd Note (Z)
6.000
08/15/13
540,000
597,104
Manitowoc, Inc.,
Gtd Sr Note (Z)
7.125
11/01/13
500,000
483,750
Terex Corp.,
Sr Note
10.875
06/01/16
250,000
275,625
9
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Industrials (continued)
Marine 0.62 %
Navios Maritime Holdings, Inc.,
Sr Note (Z)
9.500%
12/15/14
$1,000,000
$993,750
Road & Rail 1.51 %
CSX Corp.,
Sr Note (Z)
5.500
08/01/13
620,000
672,632
Sr Note (Z)
6.300
03/15/12
1,000,000
1,086,811
Kansas City Southern de Mexico SA de CV,
Sr Note
9.375
05/01/12
140,000
143,500
Sr Notes (S)
8.000
02/01/18
245,000
241,325
RailAmerica, Inc.,
Sr Sec Note
9.250
07/01/17
239,000
253,340
Trading Companies & Distributors 0.48 %
GATX Corp.,
Sr Note (Z)
8.750
05/15/14
550,000
629,294
United Rentals North America, Inc.,
Gtd Sr Note
10.875
06/15/16
125,000
136,406
Transportation Infrastructure 0.29 %
CMA CGM SA,
Sr Note (S)(Z)
7.250
02/01/13
700,000
455,000
Information Technology 2.36%
3,753,734
Electronic Equipment, Instruments & Components 1.37 %
Amphenol Corp.,
Sr Note (Z)
4.750
11/15/14
540,000
552,474
Freescale Semiconductor, Inc.,
Gtd Sr Note (Z)
8.875
12/15/14
1,000,000
890,000
Tyco Electronics Group SA,
Gtd Note
6.000
10/01/12
415,000
449,920
Gtd Sr Note
6.550
10/01/17
260,000
282,626
IT Services 0.32 %
Fiserv, Inc.,
Gtd Sr Note (Z)
6.800
11/20/17
460,000
517,169
Office Electronics 0.67 %
Xerox Corp.,
Sr Note (Z)
8.250
05/15/14
275,000
323,429
Sr Note (Z)
6.750
02/01/17
670,000
738,116
Materials 6.66%
10,607,318
Chemicals 1.37 %
American Pacific Corp.,
Gtd Sr Note (Z)
9.000
02/01/15
590,000
582,625
Incitec Pivot Finance LLC, Gtd Note (S)
6.000
12/10/19
345,000
346,011
Mosaic Company,
Sr Note (S)(Z)
7.625
12/01/16
480,000
524,757
RPM International, Inc.,
Sr Note (Z)
6.500
02/15/18
325,000
350,018
Sterling Chemicals, Inc.,
Gtd Sr Sec Note (Z)
10.250
04/01/15
400,000
386,000
10
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Materials (continued)
Containers & Packaging 1.09 %
BWAY Corp.,
Sr Sub Note (S)(Z)
10.000%
04/15/14
$315,000
$332,325
Graphic Packaging International, Inc.,
Gtd Sr Note
9.500
06/15/17
115,000
122,763
Smurfit-Stone Container Enterprises, Inc.,
Sr Note (H)(Z)
8.375
07/01/12
1,000,000
842,500
Sr Note (H)(Z)
8.000
03/15/17
245,000
203,963
Solo Cup Company, Sr Sec Note
10.500
11/01/13
85,000
89,250
US Corrugated, Inc.,
Sr Sec Note
10.000
06/12/13
160,000
137,600
Metals & Mining 2.45 %
Allegheny Technologies, Inc.,
Sr Note (Z)
9.375
06/01/19
280,000
334,301
ArcelorMittal,
Sr Note (Z)
9.850
06/01/19
540,000
685,939
CII Carbon LLC,
Gtd Sr Sub Note (S)(Z)
11.125
11/15/15
1,015,000
1,025,150
Commercial Metals Company,
Sr Note (Z)
7.350
08/15/18
310,000
329,962
Gerdau Holdings, Inc.,
Gtd Sr Note (S)
7.000
01/20/20
335,000
336,675
Rio Tinto Alcan, Inc.,
Sr Note (Z)
6.125
12/15/33
415,000
422,030
Rio Tinto Finance USA, Ltd.,
Gtd Sr Note (Z)
8.950
05/01/14
365,000
440,266
Vale Overseas, Ltd.,
Gtd Note
6.875
11/10/39
320,000
326,762
Paper & Forest Products 1.75 %
International Paper Company,
Sr Note (Z)
9.375
05/15/19
385,000
482,040
Sr Note (Z)
7.950
06/15/18
530,000
614,163
NewPage Corp.,
Gtd Sr Sec Note
11.375
12/31/14
135,000
130,613
PE Paper Escrow GmbH,
Sr Sec Note (S)
12.000
08/01/14
100,000
110,500
Verso Paper Holdings LLC,
Gtd Sr Note Series B (Z)
9.125
08/01/14
1,000,000
943,750
Westvaco Corp. (Z)
7.950
02/15/31
475,000
507,355
Telecommunication Services 4.48%
7,126,699
Diversified Telecommunication Services 2.80 %
Axtel SAB de CV,
Sr Note (S)
9.000
09/22/19
160,000
164,400
BellSouth Corp.,
Debenture (Z)
6.300
12/15/15
725,768
776,986
Intelsat Jackson Holdings, Ltd.,
Gtd Sr Note
11.500
06/15/16
365,000
388,725
Qwest Corp.,
Sr Note (Z)
8.375
05/01/16
330,000
361,350
Sr Note (Z)
7.875
09/01/11
445,000
466,138
Telecom Italia Capital SA,
Gtd Sr Note (Z)
6.175
06/18/14
1,110,000
1,217,250
11
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Telecommunication Services (continued)
Verizon Wireless Capital LLC,
Sr Note (Z)
7.375%
11/15/13
$355,000
$413,328
West Corp.,
Gtd Sr Sub Note (Z)
11.000
10/15/16
630,000
670,950
Wireless Telecommunication Services 1.68 %
American Tower Corp.,
Sr Note (S)
4.625
04/01/15
340,000
349,559
Digicel Group, Ltd.,
Sr Note (S)(Z)
8.875
01/15/15
1,080,000
1,047,600
NII Capital Corp.,
Gtd Sr Note (S)
10.000
08/15/16
230,000
240,350
SBA Telecommunications, Inc.,
Gtd Sr Note (S)
8.000
08/15/16
135,000
140,063
Sprint Capital Corp.,
Gtd Sr Note (Z)
6.900
05/01/19
1,000,000
890,000
Utilities 8.96%
14,252,145
Electric Utilities 5.50 %
Allegheny Energy Supply Company LLC,
Sr Note (S)(Z)
5.750
10/15/19
290,000
294,083
Aquila, Inc.,
Sr Note (Z)
11.875
07/01/12
405,000
476,151
BVPS II Funding Corp.,
Collateralized Lease Bond (Z)
8.890
06/01/17
621,000
698,535
Commonwealth Edison Company,
Sr Sec Bond (Z)
5.800
03/15/18
705,000
763,762
Series 106
6.150
09/15/17
230,000
256,443
Delmarva Power & Light Company,
1st Mtg Bond (Z)
6.400
12/01/13
345,000
385,526
Duke Energy Corp.,
Sr Note (Z)
6.300
02/01/14
340,000
381,151
Exelon Corp.,
Sr Note (Z)
4.900
06/15/15
985,000
1,034,282
Firstenergy Solutions Corp. (Z)
4.800
02/15/15
370,000
384,943
FPL Energy National Wind LLC,
Sr Sec Note (S)(Z)
5.608
03/10/24
297,656
293,724
ITC Holdings Corp.,
Sr Note (S)(Z)
5.875
09/30/16
175,000
184,998
Sr Note (S)(Z)
5.500
01/15/20
415,000
424,272
Monongahela Power Company,
Sec Bond (S)(Z)
7.950
12/15/13
635,000
715,046
Pepco Holdings, Inc.,
Sr Note (Z)
6.450
08/15/12
565,000
615,233
PNPP II Funding Corp.,
Sec Bond (Z)
9.120
05/30/16
344,000
381,534
Texas Competitive Electric Holdings Company LLC,
Gtd Sr Note, Series A (Z)
10.250
11/01/15
1,000,000
782,500
TXU Corp.,
Sec Bond (Z)
7.460
01/01/15
294,351
208,224
Waterford 3 Funding Corp.,
Sec Bond (Z)
8.090
01/02/17
470,896
476,561
12
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Utilities (continued)
Gas Utilities 0.33 %
DCP Midstream LLC,
Sr Note (S)(Z)
9.750%
03/15/19
$405,000
$516,694
Independent Power Producers & Energy Traders 0.67 %
AES Eastern Energy LP,
Sr Pass Thru Ctf, Series 1999-A (Z)
9.000
01/02/17
884,136
901,819
Listrindo Capital BV (S)
9.250
01/29/15
155,000
159,264
Multi-Utilities 1.64 %
DTE Energy Company,
Sr Note (Z)
7.625
05/15/14
910,000
1,049,899
Sempra Energy,
Sr Bond (Z)
8.900
11/15/13
345,000
410,193
Sr Note (Z)
6.500
06/01/16
415,000
463,668
Teco Finance, Inc.,
Gtd Sr Note (Z)
7.000
05/01/12
337,000
365,338
Gtd Sr Note (Z)
6.572
11/01/17
298,000
318,688
Water Utilities 0.82 %
Indiantown Cogeneration LP,
1st Mtg Note Series A-9 (Z)
9.260
12/15/10
110,703
112,934
Midwest Generation LLC,
Note Series B (Z)
8.560
01/02/16
300,831
303,840
Oncor Electric Delivery Co.,
Sr Sec Note (Z)
6.375
05/01/12
820,000
892,840
Shares
Value
Preferred Stocks 2.90%
$4,612,292
(Cost $5,106,106)
Consumer Staples 0.55%
875,391
Food & Staples Retailing 0.55 %
Ocean Spray Cranberries, Inc., 6.250%, Series A
12,500
875,391
Financials 1.75%
2,776,901
Diversified Financial Services 0.41 %
Bank of America Corp., 8.625% (Z)
26,575
652,151
Real Estate Investment Trusts 1.34 %
Apartment Investment & Management Company, 8.000%, Series T (Z)
55,000
1,234,750
Public Storage, Inc., 6.500%, Depositary Shares, Series W (Z)
40,000
890,000
Telecommunication Services 0.60%
960,000
Wireless Telecommunication Services 0.60 %
Telephone & Data Systems, Inc., 7.600%, Series A (Z)
40,000
960,000
13
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Term Loans 0.58%
$923,089
(Cost $1,043,358)
Consumer Discretionary 0.58%
923,089
Hotels, Restaurants & Leisure 0.58 %
East Valley Tourist Development Authority
12.000%
08/06/12
$507,883
$380,912
Greektown Holdings LLC,
Term Loan (T)
09/30/10
51,394
51,394
Term Loan
14.500
09/30/10
488,341
490,783
U.S. Government & Agency Obligations 35.09%
$55,835,584
(Cost $54,972,967)
U.S. Government 15.60%
24,821,915
U.S. Treasury Bonds
Bond
4.500%
08/15/39
2,530,000
2,526,838
U.S. Treasury Notes
Note
3.375
11/15/19
6,580,000
6,453,532
Note
2.625
12/31/14
640,000
649,350
Note
2.375
08/31/14
845,000
852,988
Note
2.375
10/31/14
2,645,000
2,661,320
Note
2.125
11/30/14
11,755,000
11,677,887
U.S. Government Agency 19.49%
31,013,669
Federal Home Loan Mortgage Corp.,
30 Yr Pass Thru Ctf
4.500
03/01/39
4,239,938
4,285,982
Federal National Mortgage Association,
15 Yr Pass Thru Ctf
4.000
06/01/24
3,619,235
3,687,661
15 Yr Pass Thru Ctf
4.000
06/01/24
1,922,871
1,959,225
15 Yr Pass Thru Ctf
4.000
06/01/24
3,570,926
3,638,438
30 Yr Pass Thru Ctf
5.500
02/01/36
3,156,826
3,352,894
30 Yr Pass Thru Ctf
5.500
06/01/37
1,732,953
1,837,878
30 Yr Pass Thru Ctf
5.500
06/01/38
3,489,757
3,701,051
30 Yr Pass Thru Ctf
4.500
03/01/38
2,664,780
2,694,446
30 Yr Pass Thru Ctf
4.500
04/01/39
946,352
956,888
Government National Mortgage Association,
30 Yr Pass Thru Ctf
5.500
11/15/38
904,902
959,939
30 Yr Pass Thru Ctf
4.500
03/15/39
3,880,006
3,939,267
Collateralized Mortgage Obligations 10.43%
$16,603,728
(Cost $23,508,301)
Collateralized Mortgage Obligations 10.43%
16,603,728
American Home Mortgage Assets,
Series 2006-6, Class XP IO
2.741
12/25/46
12,095,774
529,190
Series 2007-5, Class XP IO
3.131
06/25/47
8,513,595
468,248
American Home Mortgage Investment Trust,
Series 2007-1, Class GIOP IO
2.078
05/25/47
7,508,334
445,807
American Tower Trust,
Series 2007-1A, Class D (S)
5.957
04/15/37
865,000
897,438
Banc of America Funding Corp.,
Series 2006-B, Class 6A1 (P)
5.827
03/20/36
772,201
536,060
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-1 Class B2 (P)
4.280
03/25/35
800,707
88,101
14
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Collateralized Mortgage Obligations (continued)
Bear Stearns Alt-A Trust,
Series 2006-4 Class 3B1 (P)
5.940%
07/25/36
$1,650,460
$2,773
Series 2005-3, Class B2 (P)
4.231
04/25/35
550,160
29,539
Bear Stearns Commercial Mortgage Securities, Inc.,
Series 2006-PW14, Class D (S)
5.412
12/11/38
655,000
217,190
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-10, Class 1A5A (P)
5.718
12/25/35
602,938
408,735
Series 2005-5, Class 2A3
5.000
08/25/35
338,339
323,431
Citigroup/Deutsche Bank Commercial Mortgage Trust,
Series 2005-CD1, Class C (P)
5.224
07/15/44
295,000
166,719
ContiMortgage Home Equity Loan Trust,
Series 1995-2 Class A-5
8.100
08/15/25
42,668
39,222
Countrywide Alternative Loan Trust,
Series 2006-OA12, Class X IO
3.081
09/20/46
15,298,730
621,511
DB Master Finance LLC,
Series 2006-1, Class-M1 (S)
8.285
06/20/31
340,000
290,707
First Horizon Alternative Mortgage Securities,
Series 2004-AA5, Class B1
2.636
12/25/34
409,956
32,294
GSR Mortgage Loan Trust,
Series 2006-4F Class 6A1
6.500
05/25/36
3,086,153
2,619,364
Series 2004-9, Class B1 (P)
3.904
08/25/34
807,102
314,640
Harborview Mortgage Loan Trust,
Series 2005-11, Class X IO
2.721
08/19/45
3,883,409
160,385
Series 2005-8, Class 1X IO
2.554
09/19/35
6,394,277
242,783
Series 2007-3, Class ES IO
0.350
05/19/47
17,805,462
144,669
Series 2007-4, Class ES IO
0.350
07/19/47
18,974,643
154,169
Series 2007-6, Class ES IO (S)
0.342
08/19/37
13,973,291
113,533
Harborview Corp.,
Series 2006-9A, Class N2, NIM (S)
8.350
11/19/36
323,137
0
IndyMac Index Mortgage Loan Trust,
Series 2004-AR13, Class B1
5.296
01/25/35
327,775
50,303
Series 2005-AR18, Class 1X IO
2.555
10/25/36
12,909,670
419,564
Series 2005-AR18, Class 2X IO
2.294
10/25/36
12,594,696
425,701
Series 2005-AR5, Class B1 (P)
4.314
05/25/35
435,117
15,185
JPMorgan Chase Commercial Mortgage Securities Corp.,
Series 2005-LDP4, Class B
5.129
10/15/42
2,035,000
1,095,502
JPMorgan Mortgage Trust,
Series 2005-S3, Class 2A2
5.500
01/25/21
533,629
506,197
Merrill Lynch Mortgage Investors Trust,
Series 2006-AF1 Class MF1 (P)
6.246
08/25/36
1,180,857
80,989
MLCC Mortgage Investors, Inc.,
Series 2007-3, Class M1 (P)
5.917
09/25/37
419,859
191,478
Series 2007-3, Class M2 (P)
5.917
09/25/37
154,949
63,458
Series 2007-3, Class M3 (P)
5.917
09/25/37
104,966
36,047
Morgan Stanley Capital I,
Series 2005-HQ7, Class A4
5.207
11/14/42
840,000
857,447
Series 2006-IQ12, Class E
5.538
12/15/43
640,000
148,541
Provident Funding Mortgage Loan Trust,
Series 2005-1, Class B1 (P)
4.055
05/25/35
406,781
114,086
Residential Accredit Loans, Inc.,
Series 2005-QA12, Class NB5 (P)
5.942
12/25/35
2,686,625
1,635,313
Washington Mutual, Inc.,
Series 2005-6, Class 1CB
6.500
08/25/35
377,524
275,121
Series 2007-OA5, Class 1XPP IO
0.740
06/25/47
38,920,093
425,689
15
Securities owned by the Fund on
January 31, 2010 (Unaudited)
Maturity
Par value
Rate
date
Value
Collateralized Mortgage Obligations (continued)
Series 2007-OA6, Class 1XPP IO
0.804%
07/25/47
$22,713,186
$212,936
Series 2005-AR4 Class B1 (P)
4.623
04/25/35
1,508,511
410,299
Series 2007-0A5, Class 2XPP IO
0.999
06/25/47
45,335,096
793,364
Asset Backed Securities 0.98%
$1,563,684
(Cost $1,759,948)
Asset Backed Securities 0.98%
1,563,684
Dominos Pizza Master Issuer LLC,
Series 2007-1, Class M1 (S)
7.629%
04/25/37
1,000,000
780,000
Hertz Vehicle Financing LLC,
Series 2009-2A, Class A2 (S)
5.290
03/25/16
760,000
783,684
Maturity
Par value
Yield*
date
Value
Short-Term Investments 0.94%
$1,500,000
(Cost $1,500,000)
U.S. Government Agency 0.94%
1,500,000
Federal Home Loan Bank,
Discount Note
0.030%
02/01/10
1,500,000
1,500,000
Total investments (Cost $237,452,163) 148.05%
$235,623,093
Other assets and liabilities, net (48.05%)
($76,472,218)
Total net assets 100.00%
$159,150,875
BKNT
Bank Note
GMTN
Global Medium Term Note
Gtd
Guaranteed
IO
Interest Only Security - Interest Tranche of Stripped Mortgage Pool
MTN
Medium-Term Note
NIM
Net Interest Margin
PIK
Paid In Kind
(H) Defaulted Security. Currently, the issuer is in default with respect to interest payments.
(P) Variable rate obligation. 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. Rule 144A securities amounted to $47,341,298 or 29.78% of the Fund's net assets as of January 31, 2010.
(T) All or a portion of this security represents an unsettled term loan commitment. Rate will be determined at time of settlement.
(Z) All or a portion of this security is segregated as collateral pursuant to the Committed Facility Agreement. Total collateral value at January 31, 2010 was $134,919,805.
* 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.
16 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
At January 31, 2010, the aggregate cost of investment securities for federal income tax purposes was $238,051,699. Net unrealized depreciation aggregated $2,428,606, of which $15,428,245 related to appreciated investment securities and $17,856,851 related to depreciated investment securities.
17 |
Notes to the Schedule of Investments (Unaudited)
Security valuation
Investments are stated at value as of the close of regular trading on the New York Stock exchange (NYSE), normally at 4:00 p.m., Eastern Time. Equity securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated price if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied quotes and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independe nt quotation service Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Equity and debt obligations, for which there are no prices available from an independent pricing service, are valued based on bid quotations or evaluated prices, as applicable, obtained from broker-dealers or fair valued as described below. Certain short-term debt instruments are valued at amortized cost.
Other portfolio assets and securities where market quotations are not readily available are valued at fair value as determined in good faith by the Funds Pricing Committee in accordance with procedures adopted by the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Funds shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.
Fair value measurements
The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:
Level 1 Exchange-traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights and futures.
Level 2 Prices determined 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 techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed-income securities. Also, over-the-counter derivative contracts, including swaps, foreign forward currency contracts, and certain options use these techniques.
Level 3 Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Funds Pricing Committees own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may include the use of the brokers own judgments about the assumptions that market participants would use.
18 |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Funds investments as of January 31, 2010, by major security category or security type:
Level 2 | Level 3 | |||
Total Market | Level 1 | Significant | Significant | |
Value at | Quoted | Observable | Unobservable | |
Investments In Securities | 01/31/10 | Price | Inputs | Inputs |
Asset Backed Securities | $1,563,684 | | $783,684 | $780,000 |
Collateralized Mortgage Obligations | 16,603,728 | | 11,446,179 | 5,157,549 |
Corporate Bonds | 154,584,716 | | 153,547,116 | 1,037,600 |
Preferred Stocks | 4,612,292 | $3,736,901 | 875,391 | |
Term Loans | 923,089 | | 923,089 | |
U.S. Government & Agency Obligations | 55,835,584 | | 55,835,584 | |
Short-Term Investments | 1,500,000 | | 1,500,000 | |
Total investments in Securities | $235,623,093 | $3,736,901 | $224,911,043 | $6,975,149 |
Other Financial Instruments | (1,306,994) | (11,664) | (1,295,330) | |
Total | $234,316,099 | $3,725,237 | $223,615,713 | $6,975,149 |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Asset | Collateralized | |||
Backed | Mortgage | Corporate | ||
Securities | Obligations | Bonds | Totals | |
Balance as of 10-31-09 | $750,000 | $6,578,122 | $884,400 | $8,212,522 |
Accrued discounts/premiums | - | 28 | 123 | 151 |
Realized gain (loss) | - | 872,606 | - | 872,606 |
Change in unrealized gain (loss) | 30,000 | (1,162,818) | 153,077 | (979,741) |
Net purchases (sales) | - | (1,130,389) | - | (1,130,389) |
Net transfers in and/out of | ||||
Level 3 | - | - | - | - |
Balance as of 01-31-10 | $780,000 | $5,157,549 | $1,037,600 | $6,975,149 |
Financial Instruments
Futures
The Fund may purchase and sell financial futures contracts, including index futures and options on these contracts. A future is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. For more information on futures, please refer to the Funds prospectus, semiannual and annual reports.
During the period ended January 31, 2010, the Fund used futures to mangage duration of the portfolio. The following summarizes the Funds use of futures contracts and the contracts held as of January 31, 2010:
Unrealized | |||||
Number of | Expiration | Notional | Appreciation | ||
Open Contracts | Contracts | Position | Date | Value | (Depreciation) |
U.S. Treasury 30-Year Bond Futures | 10 | Long | Mar 2010 | $1,188,125 | $6,562 |
U.S. Treasury 5-Year Note Futures | 27 | Short | Mar 2010 | 3,144,445 | (7,805) |
U.S. Treasury 10-Year Note Futures | 23 | Short | Mar 2010 | 2,717,594 | (10,421) |
Total | $7,050,164 | ($11,664) |
19 |
Futures contracts (USD notional amounts) ranged from approximately $1.2 million to $7.1 million for the three-month period ended January 31, 2010.
Interest Rate Swap Agreements
Interest rate swaps represent an agreement between two counterparties to exchange cash flows based on the difference in the two interest rates, applied to the notional principal amount for a specified period. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The Funds settle accrued net receivable or payable under the swap contracts on a periodic basis.For more information on interest rate swaps, please refer to the Funds prospectus, semiannual and annual reports.
The following summarizes the interest rate swap contracts held as of January 31, 2010. The Fund entered into interest rate swaps to mangage duration of the portfolio.
USD | Payments | Payments | |||||
Notional | Made by | Received | Effective | Maturity | Unrealized | Market | |
Counterparty | Amount | Fund | by Fund | Date | Date | Depreciation | Value |
Bank of | 3-month | ||||||
America | $29,000,000 | 4.6875% | LIBOR (a) | 9-14-2007 | 9-14-2010 | ($1,295,330) | ($1,295,330) |
(a) At January 31, 2010, the 3-month LIBOR rate was 0.24906%. |
Interest rate swap notional amount at January 31, 2010 is representative of the activity during the period.
Fair value of derivative instruments by risk category
The table below summarizes the fair values of derivatives held by the Fund at January 31, 2010, by risk category:
Financial | Asset | Liability | |
Instruments | Derivatives | Derivatives | |
Location | Fair Value | Fair Value | |
Interest rate contracts | Futures | - | ($11,664) |
Interest rate contracts | Interest rate | - | ($1,295,330) |
swaps | |||
Total | - | ($1,306,994) |
Reflects cumulative appreciation/depreciation on futures.
20 |
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Income Securities Trust
By: | /s/ Keith F. Hartstein |
------------------------------ | |
Keith F. Hartstein | |
President and Chief Executive Officer | |
Date: | March 22, 2010 |
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: | March 22, 2010 |
By: | /s/ Charles A. Rizzo |
------------------------------- | |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | March 22, 2010 |
CERTIFICATION
I, Keith F. Hartstein, certify that:
1. I have reviewed this report on Form N-Q of John Hancock Income Securities Trust (the registrant);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: March 22, 2010 | /s/ Keith F. Hartstein |
Keith F. Hartstein | |
President and Chief Executive Officer |
CERTIFICATION
I, Charles A. Rizzo, certify that
1. I have reviewed this report on Form N-Q of John Hancock Income Securities Trust (the registrant);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: March 22, 2010 | /s/ Charles A. Rizzo |
Charles A. Rizzo | |
Chief Financial Officer |
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