N-Q 1 a_munisectrust.htm JOHN HANCOCK MUNICIPAL SECURITIES TRUST
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 811-5968
John Hancock Municipal Series 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:  May 31 
 
Date of reporting period:  August 31, 2010 

ITEM 1. SCHEDULE OF INVESTMENTS




John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Municipal Bonds 97.07%        $492,778,304 
(Cost $442,824,763)         
 
Alabama 0.42%        2,153,300 
Birmingham Special Care Facilities Financing Authority,         
Children’s Hospital  6.125%  06/01/34  $2,000,000  2,153,300 
 
Arizona 3.31%        16,794,552 
Arizona Health Facilities Authority,         
Phoenix Memorial Hospital (H)  8.200  06/01/21  2,150,000  22 
Maricopa County Pollution Control Corp.,         
El Paso Electric Company Project, Series B  7.250  04/01/40  1,000,000  1,154,660 
Phoenix Civic Improvement Corp. District, Series B         
(Zero Coupon Steps up to 5.500% on 7-1-13) (D)  Zero  07/01/28  1,000,000  1,001,810 
Salt River Project Agricultural Improvement & Power District         
Electric System, Electric, Power & Light Revenues, Series A  5.000  01/01/33  7,000,000  7,602,840 
Salt River Project Agricultural Improvement & Power District         
Electric System, Electric, Power & Light Revenues, Series A  5.000  01/01/38  2,500,000  2,695,300 
Salt River Project Agricultural Improvement & Power District         

Electric System, Electric, Power & Light Revenues, Series A 

 5.000  01/01/39  4,000,000  4,339,920 
 
California 16.78%        85,198,069 
Foothill Eastern Transportation Corridor Agency,         
Highway Revenue Tolls  Zero  01/15/25  5,000,000  1,908,450 
Foothill Eastern Transportation Corridor Agency,         
Highway Revenue Tolls, Escrowed to Maturity, Series A  Zero  01/01/19  30,000,000  24,753,600 
Los Angeles Department of Water & Power,         
Electric, Power & Light Revenues, Series A  5.000  07/01/39  3,490,000  3,747,876 
M-S-R Energy Authority,         
Natural Gas Revenue, Series B  7.000  11/01/34  2,500,000  3,071,175 
Madera County Certificates of Participation (D)  6.500  03/15/15  13,185,000  14,290,430 
San Bernardino County,         
Medical Center Financing Project  5.500  08/01/22  2,500,000  2,781,800 
San Bernardino County,         
Medical Center Financing Project, Series B (D)  5.500  08/01/17  8,195,000  8,594,588 
San Diego Redevelopment Agency,         
City Heights, Series A  5.750  09/01/23  25,000  25,017 
San Joaquin Hills Transportation Corridor Agency,         
Highway Revenue Tolls, Escrowed to Maturity  Zero  01/01/14  5,000,000  4,855,800 
San Joaquin Hills Transportation Corridor Agency,         
Highway Revenue Tolls, Escrowed to Maturity  Zero  01/01/17  4,900,000  4,344,193 
San Joaquin Hills Transportation Corridor Agency,         
Highway Revenue Tolls, Escrowed to Maturity  Zero  01/01/20  2,000,000  1,581,700 
San Joaquin Hills Transportation Corridor Agency,         
Highway Revenue Tolls, Series A  5.650  01/15/17  10,000,000  9,639,500 
Santa Ana Financing Authority,         
Police Administration & Holdings Facility, Series A (D)  6.250  07/01/19  2,000,000  2,383,680 
State of California,         
Highway Improvements  5.500  03/01/40  3,000,000  3,220,260 
 
Colorado 3.67%        18,650,929 
Colorado Springs Utilities Revenue, Series C  5.250  11/15/42  2,825,000  3,094,590 
Denver, Colorado City & County Airport Revenue, Series A  5.250  11/15/36  5,000,000  5,334,100 
E-470 Public Highway Authority,         
Highway Revenue Tolls, Prerefunded to 9-1-10, Series B  Zero  09/01/34  7,000,000  1,151,220 

 

Page 1 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Colorado (continued)         
E-470 Public Highway Authority,         
Highway Revenue Tolls, Series B1(D)  5.500%  09/01/24  $2,000,000  $2,060,680 
Northwest Parkway Public Highway Authority,         
Highway Revenue Tolls, Prerefunded to 6-15-11, Series D  7.125  06/15/41  2,865,000  3,063,774 
Public Authority for Colorado Energy,         
Natural Gas Revenue  6.250  11/15/28  3,500,000  3,946,565 
 
Connecticut 0.64%        3,261,300 
Connecticut State Health & Educational Facility Authority,         
Yale University, Series Z3  5.050  07/01/42  3,000,000  3,261,300 
 
District of Columbia 4.19%        21,277,421 
District of Columbia  6.500  05/15/33  5,000,000  4,810,350 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls (D)  Zero  10/01/33  6,565,000  1,801,961 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls (D)  Zero  10/01/35  6,470,000  1,557,070 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls (D)  Zero  10/01/36  7,250,000  1,631,830 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls, Series A  5.250  10/01/44  4,500,000  4,808,025 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls, Series C (Zero Coupon Steps up to         
6.500% on 10-1-16) (D)  Zero  10/01/41  1,750,000  1,364,685 
Metropolitan Washington DC Airports Authority, Series C  5.125  10/01/39  5,000,000  5,303,500 
 
Florida 5.71%        29,002,054 
Bonnet Creek Resort Community Development District  7.250  05/01/18  1,000,000  946,010 
Bonnet Creek Resort Community Development District  7.375  05/01/34  1,500,000  1,348,455 
Capital Projects Finance Authority,         
College & University Revenue, Series G  9.125  10/01/11  800,000  809,560 
Capital Trust Agency,         
Seminole Tribe Convention, Prerefunded to 10-1-12, Series A         
(S)  8.950  10/01/33  3,000,000  3,542,460 
Crossings at Fleming Island Community Development District,         
Recreations Facilities Improvements, Series C  7.100  05/01/30  1,000,000  1,002,560 
Hernando County, Criminal Justice (D)  7.650  07/01/16  500,000  614,760 
Miami-Dade County Aviation Revenue,         
Miami International Airport, Series A  5.500  10/01/36  3,250,000  3,474,998 
Miami-Dade County Aviation Revenue,         
Miami International Airport , Series A-1  5.375  10/01/41  3,000,000  3,136,470 
Miami-Dade County Water & Sewer Revenue,         
Water Revenue  5.000  10/01/34  3,000,000  3,185,400 
Miami-Dade County Aviation Revenue, Series B  5.000  10/01/41  3,500,000  3,513,615 
Orange County School Board,         
School Improvements, Series A (D)  Zero  08/01/13  5,000,000  4,800,350 
Orlando Utilities Commission,         
Electric, Power & Light Revenues, Escrowed to Maturity,         
Series D  6.750  10/01/17  2,200,000  2,627,416 
 
Georgia 2.37%        12,053,839 
Atlanta Tax Allocation,         
Eastside Project, Series B  5.600  01/01/30  1,000,000  1,015,120 
Georgia Municipal Electric Authority,         
Electric, Power & Light Revenues, Escrowed to Maturity,         
Series Y (D)  6.500  01/01/17  145,000  172,520 

 

Page 2 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Georgia (continued)         
Georgia Municipal Electric Authority,         
Electric, Power & Light Revenues, Escrowed to Maturity,         
Series Z (D)  5.500%  01/01/20  $150,000  $171,818 
Georgia Municipal Electric Authority,         
Electric, Power & Light Revenues, Prerefunded to 1-1-14,         
Series 2005 (D)  6.500  01/01/17  60,000  71,643 
Georgia Municipal Electric Authority,         
Electric, Power & Light Revenues, Series BB  5.700  01/01/19  980,000  1,132,586 
Georgia Municipal Electric Authority,         
Electric, Power & Light Revenues, Series C (D)  5.700  01/01/19  4,895,000  5,695,822 
Georgia Municipal Electric Authority,         
Electric, Power & Light Revenues, Series EE (D)  7.250  01/01/24  2,000,000  2,729,080 
Monroe County Development Authority,         
Oglethorpe Power Corp., Series A  6.800  01/01/12  1,000,000  1,065,250 
 
Illinois 3.70%        18,780,681 
Chicago Board of Education, Series A (D)  5.500  12/01/30  3,650,000  4,248,819 
Chicago Tax Increment Revenue,         
Pilsen Redevelopment, Series B  6.750  06/01/22  3,000,000  3,045,090 
Illinois Development Finance Authority,         
Edison Project (D)  5.850  01/15/14  3,000,000  3,346,770 
Illinois Finance Authority,         
Rush University Medical Center, Series A  7.250  11/01/38  1,500,000  1,721,715 
Lake County Community Consolidated School District No: 24         
(D)  Zero  01/01/22  2,440,000  1,480,055 
Round Lake Lakewood Grove Special Service Area No: 1,         
Prerefunded to 3-1-13  6.700  03/01/33  1,000,000  1,144,760 
Will County Community Unit School District No: 365 (D)  Zero  11/01/21  5,780,000  3,793,472 
 
Indiana 0.66%        3,355,440 
Indiana Finance Authority,         
Duke Energy, Series B  6.000  08/01/39  3,000,000  3,355,440 
 
Kentucky 2.02%        10,244,168 
Kentucky Economic Development Finance Authority,         
Louisville Arena, Series A-1 (D)  6.000  12/01/33  1,000,000  1,099,210 
Kentucky Economic Development Finance Authority,         
Norton Healthcare, Prerefunded to 10-1-13, Series C (D)  6.100  10/01/21  1,770,000  2,059,961 
Kentucky Economic Development Finance Authority,         
Norton Healthcare, Series C (D)  6.100  10/01/21  3,230,000  3,443,697 
Kentucky State Property & Buildings Commission,         
Project No: 93 (D)  5.250  02/01/29  3,250,000  3,641,300 
 
Louisiana 0.52%        2,614,300 
Louisiana Local Government Environmental Facilities,         
Westlake Chemical Corp. Projects  6.750  11/01/32  2,500,000  2,614,300 
 
Massachusetts 6.71%        34,058,508 
Commonwealth of Massachusetts, Series C D)  5.500  12/01/24  8,000,000  10,326,480 
Massachusetts Bay Transportation Authority,         
Sales Tax Revenue, Series A-2  Zero  07/01/26  13,595,000  6,917,000 
Massachusetts Health & Educational Facilities Authority,         
Civic Investments, Prerefunded to 12-15-12, Series B  9.200  12/15/31  3,500,000  4,218,235 
Massachusetts Health & Educational Facilities Authority,         
Partners HealthCare, Series C  5.750  07/01/32  85,000  86,989 

 

Page 3 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Massachusetts (continued)         
Massachusetts State Department of Transportation,         
Highway Revenue Tolls  5.000%  01/01/37  $5,000,000  $5,278,250 
Massachusetts Water Pollution Abatement, Series A  6.375  02/01/15  75,000  75,379 
Massachusetts Water Resources Authority,         
Water Revenue, Series A  5.000  08/01/40  6,500,000  7,156,175 
 
Michigan 0.23%        1,178,090 
Detroit Water Supply System Revenue,         
Water Revenue, Second Lien, Series B (D)  7.000  07/01/36  1,000,000  1,178,090 
 
Missouri 0.62%        3,122,229 
Fenton Tax Increment Revenue,         
Public Improvements, Prerefunded to 10-1-11  7.000  10/01/21  955,000  1,029,289 
Missouri State Health & Educational Facilities Authority,         
Children's Mercy Hospital  5.625  05/15/39  2,000,000  2,092,940 
 
Nebraska 1.30%        6,586,264 
Central Plains Energy Project Revenue,         
Natural Gas Revenue, Series A  5.250  12/01/20  4,970,000  5,162,488 
Omaha Public Power District,         
Electric, Power & Light Revenues, Escrowed to Maturity,         
Series B  6.200  02/01/17  1,200,000  1,423,776 
 
New Hampshire 0.25%        1,287,500 
New Hampshire Health & Education Facilities Authority,         
Exeter Project  6.000  10/01/24  1,250,000  1,287,500 
 
New Jersey 4.67%        23,682,034 
New Jersey Health Care Facilities Financing Authority,         
Care Institution, Inc. Cherry Hill Project  8.000  07/01/27  1,120,000  1,126,698 
New Jersey State Turnpike Authority,         
Highway Revenue Tolls, Series I  5.000  01/01/35  3,750,000  4,012,350 
New Jersey State Turnpike Authority, Series E  5.250  01/01/40  4,500,000  4,855,320 
Tobacco Settlement Financing Corp.,         
Prerefunded to 6-1-13  6.250  06/01/43  4,000,000  4,624,600 
Tobacco Settlement Financing Corp.,         
Prerefunded to 6-1-13  6.750  06/01/39  5,000,000  5,848,950 
Tobacco Settlement Financing Corp., Series 1A  4.500  06/01/23  3,420,000  3,214,116 
 
New York 13.62%        69,128,246 
Brooklyn Arena Local Development Corp.,         
Barclays Center Project  6.000  07/15/30  2,500,000  2,622,125 
Brooklyn Arena Local Development Corp.,         
Barclays Center Project  6.250  07/15/40  2,000,000  2,137,400 
New York City Industrial Development Agency,         
7 World Trade Center, Series A  6.250  03/01/15  2,000,000  2,005,600 
New York City Industrial Development Agency,         
Terminal One Group Association Project AMT (P)  5.500  01/01/24  1,500,000  1,560,945 
New York City Municipal Water Finance Authority,         
Water Revenue, Series 2009-EE  5.250  06/15/40  3,000,000  3,305,790 
New York City Municipal Water Finance Authority,         
Water Revenue, Series GG-1  5.000  06/15/39  10,000,000  10,719,000 
New York City Transitional Finance Authority,         
Government Fund/Grant Revenue, Series S-4  5.500  01/15/39  2,995,000  3,375,365 
New York City Transitional Finance Authority,         
Income Tax Revenue, Series A (Zero Coupon Steps up to         
14.000% on 11-1-11)  Zero  11/01/29  5,000,000  4,946,750 

 

Page 4 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity     
    date  Par value   
  Rate      Value 
 
New York (continued)         
New York City Transitional Finance Authority,         
Income Tax Revenue, Series S-3  5.250%  01/15/39  $3,000,000  $3,268,890 
New York City Transitional Finance Authority,         
Income Tax Revenue, Series S-3  5.375  01/15/34  2,000,000  2,213,420 
New York Liberty Development Corp.,         
Goldman Sachs Headquarters  5.250  10/01/35  3,500,000  3,681,860 
New York State Dormitory Authority,         
College & University Revenue, Series B  7.500  05/15/11  145,000  151,943 
New York State Dormitory Authority,         
Income Tax Revenue, Series A  5.000  02/15/39  2,500,000  2,688,950 
New York State Dormitory Authority,         
State University Education Facilities, Series A  5.500  05/15/19  1,000,000  1,189,470 
New York State Housing Finance Agency,         
College & University Revenue, Escrowed to Maturity, Series A  8.000  05/01/11  475,000  488,561 
Port Authority of New York & New Jersey,         
144th Construction Project  5.000  10/01/29  3,500,000  3,813,355 
Port Authority of New York & New Jersey,         
5th Installment Special Project AMT  6.750  10/01/19  8,700,000  8,588,727 
Triborough Bridge & Tunnel Authority,         
Highway Revenue Tolls  5.000  11/15/33  9,025,000  9,698,355 
Westchester Tobacco Asset Securitization Corp.,         
Public Improvements, Prerefunded to 7-15-17  6.950  07/15/39  2,000,000  2,671,740 
 
Ohio 0.94%        4,786,355 
Buckeye Ohio Tobacco Settlement Financing Authority,         
Series A-2  5.125  06/01/24  4,330,000  3,691,715 
Ohio Air Quality Development Authority,         
FirstEnergy Solutions Corp., Series C AMT (P)  7.250  11/01/32  1,000,000  1,094,640 
 
Oklahoma 0.40%        2,050,320 
Tulsa Municipal Airport Trust Trustees, Series A AMT (P)  7.750  06/01/35  2,000,000  2,050,320 
 
Oregon 1.38%        6,979,907 
Clackamas County School District No. 12, Series B,         
(Zero Coupon Steps up to 5.000% on 6-15-11) (D)  Zero  06/15/28  5,630,000  5,880,479 
Western Generation Agency,         
Wauna Cogeneration Project, Series B AMT  5.000  01/01/14  1,100,000  1,099,428 
 
Pennsylvania 3.61%        18,338,600 
Allegheny County Hospital Development Authority,         
West Penn Health Systems, Series A  5.000  11/15/28  3,500,000  2,776,270 
Allegheny County Redevelopment Authority,         
Pittsburgh Mills Project  5.600  07/01/23  1,000,000  967,060 
Carbon County Industrial Development Authority,         
Panther Creek Partners Project AMT  6.700  05/01/12  4,960,000  4,991,197 
Luzerne County Industrial Development Authority,         
Amern Water Company  5.500  12/01/39  1,000,000  1,057,070 
Pennsylvania Turnpike Commission, Series C  Zero  12/01/38  4,000,000  882,000 
Philadelphia Authority for Industrial Development,         
Commerical Development AMT  7.750  12/01/17  3,250,000  3,254,323 
Philadelphia School District, Series E  6.000  09/01/38  4,000,000  4,410,680 

 

Page 5 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Puerto Rico 4.17%        $21,189,171 
Commonwealth of Puerto Rico,         
Income Tax Revenue (D)(P)  10.852%  07/01/11  $4,900,000  5,264,070 
Puerto Rico Aqueduct & Sewer Authority,         
Water Revenue (D)  6.000  07/01/11  200,000  $209,688 
Puerto Rico Aqueduct & Sewer Authority,         
Water Revenue (D)(P)  11.026  07/01/11  3,300,000  3,619,703 
Puerto Rico Public Buildings Authority,         
Government Facilities, Series P  6.750  07/01/36  3,000,000  3,419,220 
Puerto Rico Sales Tax Financing Authority,         
Sales Tax Revenue, Series A (Zero Coupon Steps up to         
6.750% on 8-1-16)  Zero  08/01/32  4,000,000  3,452,640 
Puerto Rico Sales Tax Financing Corp. Authority,         
Sales Tax Revenue, Series C  5.250  08/01/41  5,000,000  5,223,850 
 
Rhode Island 0.18%        904,356 
Town of Tiverton,         
Mount Hope Bay Village, Series A  6.875  05/01/22  900,000  904,356 
 
South Carolina 3.71%        18,812,456 
Richland County,         
International Paper Company AMT  6.100  04/01/23  3,325,000  3,417,136 
South Carolina State Public Service Authority,         
Santee Cooper, Series A  5.500  01/01/38  6,000,000  6,699,720 
South Carolina State Public Service Authority,         
Santee Cooper, Series E  5.000  01/01/40  8,000,000  8,695,600 
 
South Dakota 0.99%        5,030,500 
Educational Enhancement Funding Corp., Series B  6.500  06/01/32  5,000,000  5,030,500 
 
Texas 8.06%        40,920,652 
Austin Electric Utility System Revenue, Series A  5.000  11/15/40  2,500,000  2,624,200 
Bexar County Health Facilities Development Corp.,         
Army Retirement Residence Project, Prerefunded to 7-1-12  6.300  07/01/32  1,000,000  1,108,760 
Brazos River Authority,         
TXU Energy Company, Series A AMT  8.250  10/01/30  2,000,000  970,020 
Dallas Waterworks & Sewer System Revenue  5.000  10/01/35  5,000,000  5,472,200 
Harris County,         
Highway Revenue Tolls, Series C  5.000  08/15/49  5,000,000  5,201,550 
Houston Independent School District Public Financing Corp.,         
Cesar Chavez Project, Series A (D)  Zero  09/15/16  900,000  788,742 
Lower Colorado River Authority,  5.625  05/15/39  4,000,000  4,387,320 
Lower Colorado River Authority,         
Electric, Power & Light Revenues  5.000  05/15/40  5,000,000  5,254,750 
Mission Economic Development Corp.,         
Allied Waste, Inc. Project, Series A AMT  5.200  04/01/18  1,000,000  1,009,250 
North Texas Tollway Authority,         
Highway Revenue Tolls, Series K-2  6.000  01/01/38  4,000,000  4,375,040 
North Texas Tollway Authority, Series A  6.000  01/01/25  3,000,000  3,400,320 
Texas Municipal Power Agency Revenue  5.000  09/01/40  6,000,000  6,328,500 
 
Utah 0.15%        736,213 
Salt Lake City,         
IHC Hospital, Inc., Escrowed to Maturity, Series A  8.125  05/15/15  635,000  736,213 

 

Page 6 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
Washington 0.38%        $1,943,280 
Washington Public Power Supply Systems,         
Electric, Power & Light Revenues, Series B  7.125%  07/01/16  $1,500,000  1,943,280 
 
West Virginia 0.60%        3,030,000 
West Virginia State Hospital Finance Authority,         
Charleston Medical Center, Prerefunded to 9-1-10  Zero  09/01/22  600,000  606,000 
West Virginia State Hospital Finance Authority,         
Charleston Medical Center, Prerefunded to 9-1-10  6.750  09/01/22  2,400,000  2,424,000 
 
Wisconsin 0.45%        2,274,500 
State of Wisconsin, Series A  5.750  05/01/33  2,000,000  2,274,500 
 
Wyoming 0.66%        3,353,070 
Campbell County Solid Waste Facilites Revenue,         
Basin Electric Power Company, Series A  5.750  07/15/39  3,000,000  3,353,070 
 
Corporate Bonds 1.31%        $6,666,363 
(Cost $6,786,899)         
 
Diversified Financial Services 0.68%        3,484,023 
Municipal Mortgage & Equity, LLC (S)  7.500  06/30/49  $3,786,899  3,484,023 
 
Thrifts & Mortgage Finance 0.63%        3,182,340 
Charter MAC Equity Issuer Trust, Series A-4-1 (S)  5.750  05/15/15  3,000,000  3,182,340 
Short-Term Investments 0.44%        $2,208,000 
(Cost $2,208,000)         
 
      Par value  Value 
Repurchase Agreement 0.44%        2,208,000 
Repurchase Agreement with State Street Corp. dated 8-31-10 at         
0.010% to be repurchased at $2,208,001 on 9-1-10, collateralized         
by $2,245,000 Federal Home Loan Bank, 2.500% due 4-6-15         
(valued at $2,256,225, including interest)      2,208,000  2,208,000 
 
Total investments (Cost $451,819,662)† 98.82%        $501,652,667 
Other assets and liabilities, net 1.18%        $6,001,724 
Total net assets 100.00%        $507,654,391 

 

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

AMT Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax.

(D) Bond is insured by one of the following companies:

Insurance coverage  As a % of total investments 
Assured Guaranty Corp.  4.37% 
Ambac Financial Group, Inc.  3.61% 
Financial Guaranty Insurance Company  1.17% 
National Public Finance Guarantee Insurance Corp.  10.65% 

 

(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.

Page 7 

 


John Hancock Tax-Free Bond Fund
As of 8-31-10 (Unaudited)

(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 8-31-10, the aggregate cost of investment securities for federal income tax purposes was $449,299,857. Net unrealized appreciation aggregated $52,352,810, of which $56,401,586 related to appreciated investment securities and $4,048,776 related to depreciated investment securities.

The portfolio had the following sector composition as a percentage of total net assets on 8-31-10:

General Obligation Bonds  3% 
Revenue Bonds   
Transportation  17% 
Power  11% 
Airport  8% 
Education  8% 
Water & Sewer  7% 
Health Care  7% 
Utilities  5% 
Development  4% 
Pollution  3% 
Tobacco  2% 
Facilities  1% 
Other Revenue  21% 
Short-Term Investments & Other  3% 

 

Page 8 

 


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. 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 quoted prices in active markets for identical securities. Level 2 includes 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 brokers and are based on an evaluation of the inputs described. Level 3 includes 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. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

For the three month period ended August 31, 2010, all investments are categorized as Level 2 under the hierarchy described above.

During the three month period ended August 31, 2010, there were no significant transfers in or out of Level 1 and Level 2 assets.

In order to value the securities, the Fund uses the following valuation techniques. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, taking 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. Certain 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. Certain short-term securities are valued at amortized cost. Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Fund’s Pricing Committee, following procedures established by the Board of Trustees.

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.

Page 9 

 






High Yield Municipal Bond Fund

As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Municipal Bonds 96.15%        $300,644,342 
(Cost $272,630,655)         
 
Alabama 2.02%        6,302,960 
Birmingham Special Care Facilities Financing Authority,         
Children’s Hospital  6.125%  06/01/34  $2,000,000  2,153,300 
Courtland Industrial Development Board,         
International Paper Company Project, Series A AMT  5.200  06/01/25  2,000,000  1,981,560 
Selma Industrial Development Board,         
Gulf Opportunity Zone, Series A  6.250  11/01/33  2,000,000  2,168,100 
 
Arizona 2.72%        8,509,690 
Maricopa County Industrial Development Authority,         
Catholic Healthcare West, Series A  6.000  07/01/39  3,000,000  3,245,250 
Maricopa County Pollution Control Corp.,         
El Paso Electric Co. Project, Series B  7.250  04/01/40  2,000,000  2,309,320 
Maricopa County Pollution Control Corp.,         
Public Service Palo Verde, Series A  6.250  01/01/38  1,000,000  1,049,580 
Salt Verde Financial Corp.,         
Gas Revenues  5.000  12/01/37  2,000,000  1,905,540 
 
California 7.67%        23,981,479 
California State Public Works Board,         
California State University, Series D  6.250  04/01/34  1,000,000  1,074,770 
California Statewide Communities Development Authority,         
Thomas Jefferson School of Law, Series A  7.250  10/01/38  1,000,000  1,045,550 
Foothill Eastern Transportation Corridor Agency,         
Highway Revenue Tolls  Zero  01/15/36  4,000,000  691,280 
Foothill Eastern Transportation Corridor Agency,         
Highway Revenue Tolls, Escrowed to Maturity, Series A  Zero  01/01/18  7,950,000  6,815,853 
Golden State Tobacco Securitization Corp., Series A-1  4.500  06/01/27  6,405,000  5,774,300 
M-S-R Energy Authority,         
Natural Gas Revenue, Series A  6.500  11/01/39  1,500,000  1,740,825 
M-S-R Energy Authority,         
Natural Gas Revenue, Series B  7.000  11/01/34  1,500,000  1,842,705 
San Bernardino County,         
Medical Center Financial Project, Series B (D)  5.500  08/01/17  2,245,000  2,354,466 
Southern California Public Power Authority,         
Natural Gas Revenue, Series A  5.250  11/01/26  1,500,000  1,568,310 
State of California,         
Highway Improvements  5.500  03/01/40  1,000,000  1,073,420 
 
Colorado 2.57%        8,035,197 
Colorado Health Facilities Authority,         
Christian Living Community Project, Series A  9.000  01/01/34  750,000  812,498 
Colorado Health Facilities Authority,         
Christian Living Community Project, Series A  5.750  01/01/26  1,000,000  965,360 
E-470 Public Highway Authority,         
Highway Revenue Tolls, Prerefunded to 9-1-10, Series B  Zero  09/01/35  15,700,000  2,392,994 
Public Authority for Colorado Energy,         
Natural Gas Revenue  6.250  11/15/28  2,500,000  2,818,975 
Regional Transportation District,         
Denver Transit Partners  6.000  01/15/41  1,000,000  1,045,370 

 

Page 1 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Connecticut 0.53%        $1,656,435 
Hamden Facility Revenue,         
Whitney Center Project, Series A  7. 750%  01/01/43  $1,500,000  1,656,435 
 
District of Columbia 1.25%        3,894,158 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls, Series A  Zero  10/01/37  4,000,000  773,480 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls, Series B  Zero  10/01/39  4,600,000  781,218 
Metropolitan Washington DC Airports Authority,         
Highway Revenue Tolls, Series C (Zero Coupon Steps up to         
6.500% on 10-1-16) (D)  Zero  10/01/41  3,000,000  2,339,460 
 
Florida 7.62%        23,832,265 
Bonnet Creek Resort Community Development District  7.375  05/01/34  1,055,000  948,413 
Bonnet Creek Resort Community Development District  7.250  05/01/18  1,445,000  1,366,985 
Capital Projects Finance Authority,         
College & University Revenue, Series G  9.125  10/01/11  875,000  885,456 
Capital Trust Agency,         
Seminole Tribe Convention, Prerefunded to 10-01-12, Series A         
(S)  8.950  10/01/33  1,000,000  1,180,820 
Crossings at Fleming Island Community Development District,         
Recreations Facilities Improvments, Series C  7.100  05/01/30  1,000,000  1,002,560 
Heritage Harbour North Community Development District  6.375  05/01/38  1,245,000  1,087,632 
Live Oak Community Development District No: 1, Series A  6.300  05/01/34  1,000,000  1,028,480 
Miami Beach Health Facilities Authority,         
Mt. Sinai Medical Center, Series A  6.125  11/15/11  390,000  392,543 
Miami-Dade County Aviation Revenue,         
Miami International Airport, Series A  5.500  10/01/36  2,000,000  2,138,460 
Miami-Dade County Aviation Revenue,         
Miami International Airport, Series A AMT (D)  5.000  10/01/38  2,000,000  1,958,540 
Miami-Dade County Aviation Revenue,         
Miami International Airport, Series A-1  5.500  10/01/41  1,100,000  1,160,929 
Orlando Urban Community Development District,         
Electric Light & Power Improvements  6.250  05/01/34  1,000,000  909,490 
Orlando Urban Community Development District,         
Electric Light & Power Improvements  6.000  05/01/20  595,000  552,458 
Pensacola Airport Revenue AMT  6.000  10/01/28  2,000,000  2,173,100 
Poinciana Community Development District,         
Sewer Improvements, Series A  7.125  05/01/31  1,180,000  1,180,307 
South Kendall Community Development District, Series A  5.900  05/01/35  930,000  922,747 
Tolomato Community Development District  6.650  05/01/40  1,000,000  745,040 
Tolomato Community Development District No: 8  6.450  05/01/23  1,000,000  821,850 
Village Community Development District  6.375  05/01/38  890,000  911,271 
Village Community Development District No 8  6.125  05/01/39  1,000,000  1,023,690 
Village Community Development District No: 5, Series A  6.500  05/01/33  1,385,000  1,441,494 
 
Georgia 7.02%        21,943,694 
Altanta Water & Waste Water Revenue, Series A (D)  5.500  11/01/27  1,500,000  1,732,650 
Atlanta Tax Allocation,         
Eastside Project, Series B  5.600  01/01/30  1,500,000  1,522,680 
Atlanta Water & Waste Water Revenue, Series A  6.000  11/01/28  1,000,000  1,130,840 
Atlanta Water & Waste Water Revenue, (D)  5.000  11/01/19  10,000,000  10,876,000 
Atlanta Water & Waste Water Revenue, Series A  6.000  11/01/20  1,000,000  1,212,550 

 

Page 2 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Georgia (continued)         
Clayton County Development Authority,         
Delta Air Lines AMT  9.000%  06/01/35  $1,000,000  $1,075,290 
Gainesville & Hall County Development Authority,         
ACTS Retirement-Life Communities, Inc., Series A-2  6.625  11/15/39  1,100,000  1,171,984 
Marietta Development Authority,         
Life University, Inc. Project  7.000  06/15/30  1,500,000  1,527,660 
Municipal Electric Authority of Georgia,         
Electric, Power & Light Revenues, Series D  5.500  01/01/26  1,500,000  1,694,040 
 
Guam 0.71%        2,230,580 
Guam Government, Series A  7.000  11/15/39  2,000,000  2,230,580 
 
Hawaii 0.37%        1,159,690 
Hawaii State Department of Budget & Finance,         
15 Craigside Place Project, Series A  9.000  11/15/44  1,000,000  1,159,690 
 
Illinois 1.70%        5,326,400 
Chicago Tax Increment Revenue,         
Pilsen Redevelopment, Series B  6.750  06/01/22  2,000,000  2,030,060 
Illinois Development Finance Authority, Series C1 (P)  5.950  08/15/26  1,000,000  1,000,720 
Illinois Finance Authority,         
Rush University Medical Center, Series A  7.250  11/01/38  2,000,000  2,295,620 
 
Indiana 1.66%        5,173,773 
Crown Point Economic Development Revenue,         
Wittenberg Village Project, Series A  8.000  11/15/39  1,250,000  1,273,350 
Indiana Finance Authority,         
Duke Energy, Series B  6.000  08/01/39  1,000,000  1,118,480 
Indiana Finance Authority,         
U.S. Steel Corp.  6.000  12/01/26  2,000,000  2,116,740 
St. Joseph County,         
Holy Cross Village at Notre Dame Project, Series A  6.000  05/15/26  230,000  221,163 
St. Joseph County,         
Holy Cross Village at Notre Dame Project, Series A  6.000  05/15/38  475,000  444,040 
 
Iowa 0.40%        1,243,235 
Altoona Urban Renewal Tax Increment Revenue  6.000  06/01/34  1,000,000  1,056,930 
Iowa Finance Authority,         
Care Initiatives Project, Prerefunded to 07-11-11  9.250  07/01/25  170,000  186,305 
 
Kansas 0.83%        2,600,145 
Wyandotte County-Kansas City Unified Government,         
Sales Tax Revenue, Series B  Zero  06/01/21  4,500,000  2,600,145 
 
Kentucky 1.04%        3,247,870 
Kentucky Economic Development Finance Authority,         
Owensboro Medical Health System  6.500  03/01/45  2,000,000  2,147,600 
Owen County Kentucky Waterworks System Revenue,         
Amern Water Company Project, Series A  6.250  06/01/39  1,000,000  1,100,270 
 
Louisiana 1.80%        5,628,285 
Louisiana Local Government Environmental Facilities,         
Westlake Chemical Corp. Projects  6.750  11/01/32  3,000,000  3,137,160 
St. John Baptist Parish Revenue,         
Marathon Oil Corp., Series A  5.125  06/01/37  2,500,000  2,491,125 

 

Page 3 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Maryland 1.38%        $4,303,470 
Baltimore County,         
East Baltimore Research Park, Series A  7.000%  09/01/38  $1,000,000  1,035,850 
Maryland Economic Development Corp.,         
Potomac Electric Power Company  6.200  09/01/22  2,000,000  2,369,840 
Prince Georges County,         
Victoria Falls Project  5.250  07/01/35  1,000,000  897,780 
 
Massachusetts 2.34%        7,325,460 
Massachusetts Development Finance Agency,         
Dominion Energy Brayton Point AMT (P)  5.000  02/01/36  1,000,000  962,380 
Massachusetts Development Finance Agency,         
Ogden Haverhill Project, Series B AMT  5.500  12/01/19  1,700,000  1,705,950 
Massachusetts Health & Educational Facilities Authority,         
Civic Investments, Prerefunded to 12-15-12 Series B  9.200  12/15/31  2,500,000  3,013,025 
Massachusetts State College Building Authority,         
College & University Revenue, Series A  5.500  05/01/49  1,500,000  1,644,105 
 
Michigan 0.72%        2,264,770 
Michigan Strategic Fund Ltd.,         
Detroit Education  5.625  07/01/20  1,000,000  1,152,070 
Michigan Strategic Fund Ltd.,         
Dow Chemical Company, Series A-1 AMT (P)  6.750  12/01/28  1,000,000  1,112,700 
 
Minnesota 0.65%        2,022,740 
North Oak Senior Housing Revenue,         
Presbyterian Homes North Oaks  6.000  10/01/27  1,000,000  1,016,060 
St Paul Housing & Redevelopment Authority,         
Carondelet Village Project, Series A  6.000  08/01/42  1,000,000  1,006,680 
 
Mississippi 0.66%        2,053,620 
Mississippi Business Finance Corp.,         
System Energy Resources, Inc. Project  5.875  04/01/22  1,000,000  1,000,020 
Warren County,         
International Paper Company, Series A  5.800  05/01/34  1,000,000  1,053,600 
 
Missouri 0.63%        1,968,948 
Missouri Joint Municipal Electric Utility Commission,         
Iatan 2 Project, Series A  6.000  01/01/39  1,000,000  1,097,380 
St. Louis Airport Revenue,         
Lambert St. Louis International Airport  6.625  07/01/34  800,000  871,568 
 
Nevada 1.24%        3,872,410 
Clark County Nevada Industrial Development Revenue,         
Nevada Power Company Project, Series A AMT  5.600  10/01/30  3,000,000  2,904,660 
Sparks Tourism Improvement District No 1:,         
Sales Tax Revenue, Series A (S)  6.750  06/15/28  1,000,000  967,750 
 
New Hampshire 0.82%        2,575,165 
New Hampshire Business Finance Authority,         
Public Service Company Project, Series B AMT (D)  4.750  05/01/21  1,500,000  1,515,105 
New Hampshire Business Finance Authority, Series A AMT (P)  6.875  12/01/29  1,000,000  1,060,060 
 
New Jersey 3.76%        11,769,846 
New Jersey Economic Development Authority,         
Continental Airlines, Inc. Project AMT  6.625  09/15/12  2,460,000  2,505,461 

 

Page 4 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
New Jersey (continued)         
New Jersey Economic Development Authority,         
Continental Airlines, Inc. Project AMT  6.250%  09/15/29  $1,300,000  $1,254,578 
New Jersey Health Care Facilities Financing Authority,         
Care Institution, Inc. Cherry Hill Project  8.000  07/01/27  1,250,000  1,257,475 
New Jersey Health Care Facilities Financing Authority,         
St. Peter's University Hospital , Series A  6.875  07/01/30  1,000,000  1,000,770 
New Jersey State Educational Facilities Authority,         
University of Medical and Dentistry  7.500  12/01/32  1,000,000  1,174,540 
Tobacco Settlement Financing Corp.,         
Prerefunded to 6-1-13  6.250  06/01/43  1,000,000  1,156,150 
Tobacco Settlement Financing Corp., Series 1A  4.500  06/01/23  3,640,000  3,420,872 
 
New Mexico 1.00%        3,109,950 
Farmington Pollution Control,         
Electric, Power & Light Revenues  5.900  06/01/40  3,000,000  3,109,950 
 
New York 6.44%        20,126,700 
Brooklyn Arena Local Development Corp.,         
Barclays Center Project  6.375  07/15/43  1,000,000  1,069,450 
Chautauqua County Industrial Development Agency,         
Dunkirk Power Project  5.875  04/01/42  1,350,000  1,404,662 
Long Island Power Authority,         
Electric, Power & Light Revenues, Series A  5.750  04/01/39  2,500,000  2,809,325 
Long Island Power Authority,         
Electric, Power & Light Revenues, Series C (D)  5.250  09/01/29  1,475,000  1,740,471 
New York City Industrial Development Agency,         
7 World Trade Center, Series A  6.250  03/01/15  1,500,000  1,504,200 
New York City Industrial Development Agency,         
American Airlines-JFK Airport AMT  7.500  08/01/16  2,000,000  2,072,020 
New York City Municipal Water Finance Authority,         
Water Revenue, Series F (V)  0.026  06/15/35  300,000  300,000 
New York Liberty Development Corp.,         
Goldman Sachs Headquarters  5.250  10/01/35  8,250,000  8,678,670 
Port Authority of New York & New Jersey,         
5th Installment Special Project AMT  6.750  10/01/19  555,000  547,902 
 
North Carolina 1.55%        4,841,000 
North Carolina Capital Facilities Finance Agency,         
Solid Waste Disposable Revenues  4.625  11/01/40  2,500,000  2,507,900 
North Carolina Eastern Municipal Power Agency,         
Electric, Power & Light Revenues, Series A  5.500  01/01/26  1,000,000  1,111,340 
North Carolina Eastern Municipal Power Agency,         
Electric, Power & Light Revenues, Series C  6.750  01/01/24  1,000,000  1,221,760 
 
Ohio 3.77%        11,782,726 
Buckeye Ohio Tobacco Settlement Financing Authority, Series         
A-2  5.875  06/01/30  3,500,000  2,841,370 
Buckeye Ohio Tobacco Settlement Financing Authority, Series         
A-2  5.125  06/01/24  3,870,000  3,299,523 
Cleveland Ohio Airport Revenue,         
Continental Airlines, Inc. Project AMT  5.375  09/15/27  2,510,000  2,195,798 
Hickory Chase Community Authority,         
Hickory Chase Project  7.000  12/01/38  1,000,000  653,050 
Ohio Air Quality Development Authority,         
FirstEnergy Solutions Corp., Series A (P)  5.750  06/01/33  1,500,000  1,698,345 

 

Page 5 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Ohio (continued)         
Ohio Air Quality Development Authority,         
FirstEnergy Solutions Corp., Series C AMT (P)  7.250%  11/01/32  $1,000,000  $1,094,640 
 
Oklahoma 1.35%        4,219,859 
Oklahoma Municipal Power Authority,         
Electric, Power & Light Revenues, Series A  6.000  01/01/38  1,685,000  1,888,160 
Tulsa Municipal Airport Trust Trustees,         
American Airlines Project  6.250  06/01/20  1,375,000  1,306,539 
Tulsa Municipal Airport Trust Trustees, Series A AMT (P)  7.750  06/01/35  1,000,000  1,025,160 
 
Oregon 0.51%        1,587,705 
Western Generation Agency,         
Wauna Cogeneration Project, Series B AMT  5.000  01/01/14  1,105,000  1,104,425 
Western Generation Agency,         
Wauna Cogeneration Project, Series B AMT  5.000  01/01/16  500,000  483,280 
 
Pennsylvania 4.34%        13,583,224 
Allegheny County Hospital Development Authority,         
West Penn Health Systems, Series A  5.000  11/15/28  1,000,000  793,220 
Allegheny County Industrial Development Authority,         
Environmental Improvements  6.875  05/01/30  1,000,000  1,099,370 
Allegheny County Industrial Development Authority,         
Environmental Improvements  5.500  11/01/16  1,000,000  1,029,920 
Pennsylvania Economic Development Financing Authority,         
Allegheny Energy Supply Company  7.000  07/15/39  2,500,000  2,858,424 
Pennsylvania Economic Development Financing Authority,         
Philadelphia Biosolids Facility  6.250  01/01/32  1,000,000  1,079,080 
Pennsylvania Turnpike Commission,         
Highway Revenue Tolls, Series E (Zero Coupon Steps up to         
6.375% on 12-1-17)  Zero  12/01/38  5,000,000  3,797,250 
Pennsylvania Turnpike Commission, Series C  Zero  12/01/38  4,000,000  882,000 
Philadelphia Gas Waterworks Revenue  5.250  08/01/40  2,000,000  2,043,960 
 
Puerto Rico 8.23%        25,720,710 
Commonwealth of Puerto Rico, Series B  6.500  07/01/37  2,000,000  2,253,020 
Commonwealth of Puerto Rico, Series C  6.000  07/01/39  1,000,000  1,083,250 
Puerto Rico Aqueduct & Sewer Authority,         
Water Revenue, Series A  6.000  07/01/38  1,000,000  1,082,930 
Puerto Rico Aqueduct & Sewer Authority,         
Water Revenue , Series A (Zero Coupon Steps up to 6.125%         
on 7-1-11)  Zero  07/01/24  1,500,000  1,614,810 
Puerto Rico Electric Power Authority,         
Electric, Power & Light Revenues, Series TT  5.000  07/01/32  1,250,000  1,285,600 
Puerto Rico Electric Power Authority,         
Electric, Power & Light Revenues, Series XX  5.250  07/01/40  3,000,000  3,138,150 
Puerto Rico Sales Tax Financing Authority,         
Sales Tax Revenue, Series A  5.750  08/01/37  3,000,000  3,206,880 
Puerto Rico Sales Tax Financing Authority,         
Sales Tax Revenue, Series A (Zero Coupon Steps up to         
6.750% on 8-1-16)  Zero  08/01/32  3,000,000  2,589,480 
Puerto Rico Sales Tax Financing Corp.,         
Sales Tax Revenue, Series A  5.500  08/01/42  3,000,000  3,180,810 
Puerto Rico Sales Tax Financing Corp.,         
Sales Tax Revenue, Series A  Zero  08/01/33  5,000,000  1,269,550 

 

Page 6 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Puerto Rico (continued)         
Puerto Rico Sales Tax Financing Corp.,         
Sales Tax Revenue, Series A (D)  Zero  08/01/41  $5,000,000  $837,150 
Puerto Rico Sales Tax Financing Corp.,         
Sales Tax Revenue, Series C  5.250%  08/01/41  4,000,000  4,179,080 
 
Rhode Island 0.15%        483,416 
Tobacco Settlement Financing Corp., Series A  6.000  06/01/23  165,000  166,891 
Town of Tiverton,         
Mount Hope Bay Village, Series A  6.875  05/01/22  315,000  316,525 
 
South Carolina 0.10%        319,906 
Lancaster County,         
Edenmoor Improvement District, Series A (H)  5.750  12/01/37  970,000  319,906 
 
Tennessee 1.90%        5,955,097 
Johnson City Health & Educational Facilities,         
Mountain States Health Alliance, Prerefunded to 7-1-12,         
Series A  7.500  07/01/33  1,000,000  1,128,000 
Tennessee Energy Acquisition Corp.,         
Natural Gas Revenue, Series C  5.000  02/01/25  4,720,000  4,827,097 
 
Texas 12.04%        37,657,266 
Bexar County Health Facilities Development Corp.,         
Army Retirement Residence Project, Prerefunded to 7-1-12  6.300  07/01/32  150,000  166,313 
Brazos Harbor Industrial Development Corp.,         
Dow Chemical Company Project AMT (P)  5.900  05/01/38  1,500,000  1,551,192 
Brazos River Authority,         
TXU Energy Company, Series A AMT  7.700  04/01/33  2,500,000  1,175,000 
Guadalupe-Blanco River Authority,         
E.I. Dupont De Nemours Project AMT  6.400  04/01/26  1,000,000  1,001,720 
Gulf Coast Industrial Development Authority,         
CITGO Petroleum Corp. AMT  8.000  04/01/28  2,100,000  2,149,245 
Gulf Coast Waste Disposal Authority,         
International Paper Company, Series A AMT  6.100  08/01/24  1,500,000  1,523,160 
Harris County Health Facilities Development Corp.,         
Memorial Hermann Healthcare., Series B  7.250  12/01/35  1,000,000  1,158,540 
Matagorda County Navigation District,         
Electric, Power & Light Revenues, Series A  6.300  11/01/29  1,000,000  1,111,600 
Metro Health Facilities Development Corp.,         
Wilson N. Jones Memorial Hospital Project, Prerefunded to         
1-1-11  7.250  01/01/31  1,000,000  1,020,860 
Mission Economic Development Corp.,         
Allied Waste, Inc. Project, Series A AMT  5.200  04/01/18  1,500,000  1,513,875 
Mission Economic Development Corp.,         
Waste Management, Inc. Project AMT (P)  6.000  08/01/20  975,000  1,062,146 
North Texas Tollway Authority,         
Highway Revenue Tolls, Series A  6.250  02/01/23  2,000,000  2,169,880 
North Texas Tollway Authority,         
Highway Revenue Tolls, Series A  6.250  01/01/39  3,000,000  3,343,620 
North Texas Tollway Authority,         
Highway Revenue Tolls, Series C  5.250  01/01/44  3,500,000  3,582,740 
North Texas Tollway Authority,         
Highway Revenue Tolls, Series F  5.750  01/01/38  4,500,000  4,792,770 
North Texas Tollway Authority,         
Highway Revenue Tolls, Series K-2  6.000  01/01/38  1,000,000  1,093,760 

 

Page 7 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
Texas (continued)         
Tarrant County Cultural Education Facilities Finance Corp.,         
Air Force Retirement Facility  6.375%  11/15/44  $2,000,000  $2,054,940 
Texas Municipal Gas Acquisition & Supply Corp.,         
Natural Gas Revenue, Series D  6.250  12/15/26  5,500,000  6,141,685 
Travis County Health Facilities Development Corp.,         
Westminster Manor  7.000  11/01/30  1,000,000  1,044,220 
 
Virgin Islands 0.36%        1,128,640 
Virgin Islands Public Finance Authority, Series A  6.750  10/01/37  1,000,000  1,128,640 
 
Virginia 0.74%        2,326,440 
Washington County Industrial Development Authority,         
Mountain States Health Alliance, Series C  7.750  07/01/38  2,000,000  2,326,440 
 
Washington 0.34%        1,060,440 
Washington Health Care Facilities Authority,         
Swedish Health Services, Series A  6.500  11/15/33  1,000,000  1,060,440 
 
West Virginia 0.33%        1,020,860 
West Virginia Economic Development Authority,         
Appalachian Power Company, Series A (P)  5.375  12/01/38  1,000,000  1,020,860 
 
Wisconsin 0.25%        794,978 
Wisconsin Health & Educational Facilities Authority,         
St. John’s Community, Inc., Series A  7.625  09/15/39  750,000  794,978 
 
Wyoming 0.64%        2,003,140 
Sweetwater County,         
FMC Corp. Project AMT  5.600  12/01/35  2,000,000  2,003,140 
 
Corporate Bonds 0.34%        $1,078,010 
(Cost $1,000,000)         
 
Thrifts & Mortgage Finance 0.34%        1,078,010 
Centerline Equity Issuer Trust (S)  6.000  05/15/19  $1,000,000  1,078,010 
 
Short-Term Investments 3.35%        $10,479,000 
(Cost $10,479,000)         
 
      Par value  Value 
Repurchase Agreement 3.35%        10,479,000 
Repurchase Agreement with State Street Corp. dated 8-31-10 at 0.010% to be       
repurchased at $10,479,003 on 9-1-10, collateralized by $10,665,000 U.S. Treasury     
Notes, 0.625% due 7-31-12 (valued at $10,691,663, including interest)    $10,479,000  10,479,000 
 
Total investments (Cost $284,109,655)† 99.84%        $312,201,352 
 
Other assets and liabilities, net 0.16%        $495,704 
 
Total net assets 100.00%        $312,697,056 

 

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

AMT  Interest earned from these securities may be considered a tax preference item for purpose of the Federal 
  Alternative Minimum Tax. 

 

Page 8 

 


High Yield Municipal Bond Fund
As of 8-31-10 (Unaudited)

(D) Bond is insured by one of the following companies:   
  Insurance coverage  As a % of total investments 
  Assured Guaranty Corp.    0.75% 
  Assured Guaranty Municipal Corp.  3.48% 
  CIFG Holding Ltd.    1.18% 
  National Public Finance Guarantee Corp.  2.06% 

 

(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.

(V) Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rate as of 8-31-10.

† At 8-31-10, the aggregate cost of investment securities for federal income tax purposes was $282,688,596. Net unrealized appreciation aggregated $29,512,756, of which $31,826,537 related to appreciated investment securities and $2,313,781 related to depreciated investment securities.

The Fund had the following sector composition as a percentage of total net assets on 8-31-10:

General Obligation Bonds  2% 
Revenue Bonds   
Development  17% 
Pollution  10% 
Transportation  9% 
Health Care  9% 
Power  8% 
Airport  6% 
Water & Sewer  5% 
Education  4% 
Tobacco  1% 
Utilities  1% 
Other Revenue  24% 
Short-Term Investments and Other  4% 

 

Page 9 

 


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. 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 quoted prices in active markets for identical securities. Level 2 includes 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 brokers and are based on an evaluation of the inputs described. Level 3 includes 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. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

For the three month period ended August 31, 2010, all investments are categorized as Level 2 under the hierarchy described above.

During the three month period ended August 31, 2010, there were no significant transfers in or out of Level 1 and Level 2 assets.

In order to value the securities, the Fund uses the following valuation techniques. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, taking 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. Certain 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. Certain short-term securities are valued at amortized cost. Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Fund’s Pricing Committee, following procedures established by the Board of Trustees. Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. and foreign fixed-income securities rated below investment grade. Investments in high yield securities involve greater degrees of credit and market risk than investments in higher rated securities and tend to be more sensitive to market conditions.

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.

Page 10 

 




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 Municipal Securities Trust 
 
By: /s/ Keith F. Hartstein
------------------------------ 
Keith F. Hartstein 
President and Chief Executive Officer 
 
 
Date: October 27, 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:  October 27, 2010 
 
 
By:  /s/ Charles A. Rizzo
  ------------------------------- 
  Charles A. Rizzo 
  Chief Financial Officer 
 
 
Date:  October 27, 2010