| 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, 2011 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Corporate Bonds 84.40% | $144,440,951 | |||
|
| ||||
| (Cost $136,198,617) | ||||
| Consumer Discretionary 11.38% | 19,479,960 | |||
|
| ||||
| Auto Components 0.35% | ||||
| Exide Technologies (S) | 8.625 | 02/01/18 | $280,000 | 295,050 |
| Tenneco, Inc.(S) | 6.875 | 12/15/20 | 300,000 | 307,500 |
| Auto Manufacturers 0.36% | ||||
| Volvo Treasury AB(S)(Z) | 5.950 | 04/01/15 | 555,000 | 607,536 |
| Automobiles 0.18% | ||||
| Hyundai Capital Services, Inc.(S) | 4.375 | 07/27/16 | 310,000 | 311,800 |
| Consumer Finance 0.61% | ||||
| Nissan Motor Acceptance Corp.(S)(Z) | 4.500 | 01/30/15 | 1,000,000 | 1,045,486 |
| Food Products 0.16% | ||||
| Simmons Foods, Inc.(S) | 10.500 | 11/01/17 | 250,000 | 268,750 |
| Hotels, Restaurants & Leisure 3.73% | ||||
| Greektown Superholdings, Inc.(S) | 13.000 | 07/01/15 | 1,713,000 | 1,939,973 |
| Jacobs Entertainment, Inc.(Z) | 9.750 | 06/15/14 | 600,000 | 600,000 |
| Little Traverse Bay Bands of Odawa Indians(S) | 9.000 | 08/31/20 | 164,000 | 147,600 |
| MGM Resorts International(S) | 9.000 | 03/15/20 | 100,000 | 110,500 |
| MTR Gaming Group, Inc. | 12.625 | 07/15/14 | 185,000 | 194,481 |
| MTR Gaming Group, Inc., Series B(Z) | 9.000 | 06/01/12 | 390,000 | 358,800 |
| Pokagon Gaming Authority(S) | 10.375 | 06/15/14 | 500,000 | 517,500 |
| Seminole Indian Tribe of Florida(S) | 7.750 | 10/01/17 | 125,000 | 131,875 |
| Seminole Indian Tribe of Florida(S)(Z) | 6.535 | 10/01/20 | 650,000 | 637,085 |
| Turning Stone Resort Casino Enterprises(S)(Z) | 9.125 | 09/15/14 | 1,540,000 | 1,570,800 |
| Waterford Gaming LLC(S)(Z) | 8.625 | 09/15/14 | 257,000 | 176,751 |
| Household Durables 0.05% | ||||
| American Standard Americas(S) | 10.750 | 01/15/16 | 85,000 | 89,250 |
| Household Products 0.07% | ||||
| Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC(S) | 6.875 | 02/15/21 | 125,000 | 126,094 |
| Internet & Catalog Retail 0.32% | ||||
| Expedia, Inc.(Z) | 5.950 | 08/15/20 | 530,000 | 537,950 |
| Media 4.39% | ||||
| AMC Entertainment, Inc. | 8.750 | 06/01/19 | 125,000 | 134,063 |
| Cablevision Systems Corp. | 8.625 | 09/15/17 | 135,000 | 150,862 |
| Canadian Satellite Radio Holdings, Inc.(Z) | 12.750 | 02/15/14 | 979,000 | 988,790 |
| CBS Corp. | 7.875 | 07/30/30 | 350,000 | 407,465 |
| CBS Corp. | 5.900 | 10/15/40 | 225,000 | 213,527 |
| CCH II LLC/CCH II Capital Corp. | 13.500 | 11/30/16 | 306,006 | 370,267 |
| CCO Holdings LLC/CCO Holdings Capital Corp. | 8.125 | 04/30/20 | 145,000 | 154,425 |
| Cinemark USA, Inc. | 8.625 | 06/15/19 | 180,000 | 194,850 |
| Clear Channel Worldwide Holdings, Inc. | 9.250 | 12/15/17 | 410,000 | 453,050 |
| DirecTV Holdings LLC | 6.350 | 03/15/40 | 220,000 | 225,275 |
| Grupo Televisa SA | 6.625 | 01/15/40 | 310,000 | 326,012 |
| News America Holdings, Inc.(Z) | 7.750 | 01/20/24 | 1,020,000 | 1,191,473 |
| News America Holdings, Inc.(Z) | 7.600 | 10/11/15 | 1,000,000 | 1,185,025 |
| Nexstar Broadcasting, Inc.(Z) | 7.000 | 01/15/14 | 339,998 | 331,388 |
| Regal Cinemas Corp. | 8.625 | 07/15/19 | 115,000 | 122,475 |
| Regal Entertainment Group | 9.125 | 08/15/18 | 100,000 | 106,625 |
| 1 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Consumer Discretionary (continued) | ||||
|
| ||||
| Time Warner Cable, Inc.(Z) | 6.750 | 07/01/18 | $605,000 | $700,433 |
| United Business Media, Ltd.(S) | 5.750 | 11/03/20 | 275,000 | 262,342 |
| Multiline Retail 0.10% | ||||
| Sears Holdings Corp.(S) | 6.625 | 10/15/18 | 175,000 | 167,781 |
| Personal Products 0.20% | ||||
| Revlon Consumer Products Corp. | 9.750 | 11/15/15 | 320,000 | 340,000 |
| Specialty Retail 0.23% | ||||
| Empire Today LLC/Empire Today Finance Corp.(S) | 11.375 | 02/01/17 | 165,000 | 170,363 |
| Hillman Group, Inc. | 10.875 | 06/01/18 | 210,000 | 229,163 |
| Textiles, Apparel & Luxury Goods 0.63% | ||||
| Burlington Coat Factory Warehouse Corp.(Z) | 11.125 | 04/15/14 | 535,000 | 556,400 |
| Levi Strauss & Company | 7.625 | 05/15/20 | 500,000 | 523,125 |
| Consumer Staples 3.21% | 5,490,832 | |||
|
| ||||
| Beverages 0.06% | ||||
| PepsiCo, Inc. | 7.900 | 11/01/18 | 85,000 | 108,211 |
| Food & Staples Retailing 0.69% | ||||
| CVS Caremark Corp. (6.302% to 06/01/2012, then 3 month | ||||
| LIBOR + 2.065%)(Z) | 6.302 | 06/01/37 | 1,230,000 | 1,185,412 |
| Food Products 1.24% | ||||
| Bunge Ltd. Finance Corp.(Z) | 8.500 | 06/15/19 | 350,000 | 412,868 |
| Bunge Ltd. Finance Corp.(Z) | 5.350 | 04/15/14 | 1,040,000 | 1,095,140 |
| Corp. Pesquera Inca SAC(S) | 9.000 | 02/10/17 | 230,000 | 244,375 |
| JBS Finance II, Ltd.(S) | 8.250 | 01/29/18 | 360,000 | 360,000 |
| Household Products 0.28% | ||||
| Yankee Candle Company, Inc.(Z) | 8.500 | 02/15/15 | 455,000 | 475,475 |
| Tobacco 0.94% | ||||
| Alliance One International, Inc.(Z) | 10.000 | 07/15/16 | 1,000,000 | 1,050,000 |
| Lorillard Tobacco Company(Z) | 6.875 | 05/01/20 | 560,000 | 559,351 |
| Energy 8.65% | 14,805,441 | |||
|
| ||||
| Energy Equipment & Services 0.57% | ||||
| MidAmerican Energy Holdings Company(Z) | 8.480 | 09/15/28 | 550,000 | 704,738 |
| Trinidad Drilling, Ltd.(S) | 7.875 | 01/15/19 | 265,000 | 274,275 |
| Gas Utilities 0.31% | ||||
| DCP Midstream LLC(S)(Z) | 9.750 | 03/15/19 | 405,000 | 523,030 |
| Oil, Gas & Consumable Fuels 7.77% | ||||
| Anadarko Petroleum Corp.(Z) | 6.375 | 09/15/17 | 440,000 | 486,013 |
| Anadarko Petroleum Corp. | 5.950 | 09/15/16 | 330,000 | 361,947 |
| Arch Coal, Inc. | 8.750 | 08/01/16 | 100,000 | 110,750 |
| Bumi Investment Pte, Ltd.(S) | 10.750 | 10/06/17 | 190,000 | 209,000 |
| ConocoPhillips(Z) | 4.400 | 05/15/13 | 1,000,000 | 1,072,347 |
| Energy Transfer Partners LP(Z) | 9.700 | 03/15/19 | 330,000 | 432,239 |
| Enterprise Products Operating LLC (7.000% to 06/01/2017, | ||||
| then 3 month LIBOR + 2.778%)(Z) | 7.000 | 06/01/67 | 695,000 | 690,656 |
| Enterprise Products Operating LLC, Series B (7.034% to | ||||
| 01/15/2018, then 3 month LIBOR + 2.680%)(Z) | 7.034 | 01/15/68 | 590,000 | 615,075 |
| Gibson Energy ULC/GEP Midstream Finance Corp. | 10.000 | 01/15/18 | 265,000 | 273,613 |
| Husky Energy, Inc. | 7.250 | 12/15/19 | 315,000 | 374,033 |
| 2 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Energy (continued) | ||||
|
| ||||
| Kinder Morgan Energy Partners LP(Z) | 7.750 | 03/15/32 | $195,000 | $224,987 |
| Linn Energy LLC/Linn Energy Finance Corp.(S) | 8.625 | 04/15/20 | 200,000 | 219,000 |
| Marathon Petroleum Corp.(S) | 6.500 | 03/01/41 | 280,000 | 276,691 |
| MarkWest Energy Partners LP, Series B(Z) | 8.500 | 07/15/16 | 545,000 | 574,294 |
| Motiva Enterprises LLC(S) | 6.850 | 01/15/40 | 280,000 | 323,613 |
| Niska Gas Storage US LLC/Niska Gas Storage Canada | ||||
| ULC(S) | 8.875 | 03/15/18 | 395,000 | 430,550 |
| NuStar Logistics LP(Z) | 7.650 | 04/15/18 | 845,000 | 989,721 |
| NuStar Logistics LP | 4.800 | 09/01/20 | 210,000 | 205,729 |
| Pan American Energy LLC(S) | 7.875 | 05/07/21 | 145,000 | 155,150 |
| Petro-Canada(Z) | 9.250 | 10/15/21 | 1,000,000 | 1,345,179 |
| Regency Energy Partners LP/Regency Energy Finance Corp. | 9.375 | 06/01/16 | 295,000 | 325,975 |
| Spectra Energy Capital LLC(Z) | 6.200 | 04/15/18 | 1,000,000 | 1,110,097 |
| Thermon Industries, Inc. | 9.500 | 05/01/17 | 100,000 | 107,500 |
| TransCanada Pipelines, Ltd. (6.350% to 05/15/2017, then 3 | ||||
| month LIBOR + 2.210%) | 6.350 | 05/15/67 | 490,000 | 491,548 |
| Williams Partners LP(Z) | 7.250 | 02/01/17 | 1,620,000 | 1,897,691 |
| Financials 33.07% | 56,601,258 | |||
|
| ||||
| Capital Markets 2.93% | ||||
| Credit Suisse New York(Z) | 5.300 | 08/13/19 | 415,000 | 433,890 |
| Credit Suisse New York(Z) | 4.375 | 08/05/20 | 555,000 | 537,337 |
| Jefferies Group, Inc. | 8.500 | 07/15/19 | 165,000 | 192,380 |
| Jefferies Group, Inc.(Z) | 6.875 | 04/15/21 | 905,000 | 961,959 |
| Macquarie Group, Ltd.(S)(Z) | 7.300 | 08/01/14 | 270,000 | 300,045 |
| Macquarie Group, Ltd.(S) | 6.000 | 01/14/20 | 340,000 | 339,614 |
| Morgan Stanley(Z) | 7.300 | 05/13/19 | 485,000 | 539,564 |
| Morgan Stanley | 5.550 | 04/27/17 | 500,000 | 520,251 |
| Northern Trust Corp.(Z) | 6.500 | 08/15/18 | 225,000 | 260,872 |
| Polymer Group, Inc.(S) | 7.750 | 02/01/19 | 95,000 | 97,613 |
| The Goldman Sachs Group, Inc.(Z) | 6.150 | 04/01/18 | 760,000 | 827,790 |
| Commercial Banks 6.32% | ||||
| Australia & New Zealand Banking Group, Ltd.(S)(Z) | 4.875 | 01/12/21 | 525,000 | 529,888 |
| Barclays Bank PLC(Z) | 5.140 | 10/14/20 | 1,930,000 | 1,759,241 |
| BNP Paribas | 5.000 | 01/15/21 | 420,000 | 420,446 |
| BPCE SA (12.500% to 09/30/2019, then 3 month LIBOR + | ||||
| 12.980%)(S) | 12.500 | (Q) | 330,000 | 364,455 |
| Chuo Mitsui Trust & Banking Company, Ltd. (5.506% to | ||||
| 04/15/2015, then 3 month LIBOR + 2.490%)(S)(Z) | 5.506 | (Q) | 940,000 | 951,272 |
| Commonwealth Bank of Australia(S)(Z) | 5.000 | 03/19/20 | 555,000 | 573,205 |
| First Tennessee Bank NA | 5.050 | 01/15/15 | 290,000 | 294,713 |
| Huntington Bancshares, Inc. | 7.000 | 12/15/20 | 90,000 | 96,354 |
| ICICI Bank, Ltd.(S) | 5.750 | 11/16/20 | 475,000 | 461,608 |
| Lloyds TSB Bank PLC | 6.375 | 01/21/21 | 440,000 | 444,476 |
| National City Bank(P)(Z) | 0.673 | 06/07/17 | 575,000 | 518,862 |
| Regions Financial Corp.(Z) | 7.750 | 11/10/14 | 1,000,000 | 1,050,000 |
| Regions Financial Corp.(P) | 0.473 | 06/26/12 | 265,000 | 251,473 |
| Santander Issuances SA (6.500% to 11/15/2014, then 3 | ||||
| month LIBOR + 3.920%)(S)(Z) | 6.500 | 08/11/19 | 600,000 | 595,999 |
| State Bank of India/London(S) | 4.500 | 07/27/15 | 330,000 | 336,777 |
| The Royal Bank of Scotland Group PLC | 4.875 | 03/16/15 | 330,000 | 335,769 |
| Wachovia Bank NA(Z) | 6.600 | 01/15/38 | 325,000 | 356,475 |
| Wachovia Bank NA(Z) | 5.850 | 02/01/37 | 390,000 | 386,906 |
| Wells Fargo Bank NA(Z) | 5.750 | 05/16/16 | 450,000 | 501,182 |
| 3 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Financials (continued) | ||||
|
| ||||
| Westpac Banking Corp.(Z) | 4.875 | 11/19/19 | $565,000 | $585,780 |
| Consumer Finance 2.12% | ||||
| Capital One Financial Corp.(Z) | 6.750 | 09/15/17 | 1,000,000 | 1,154,488 |
| Capital One Financial Corp.(Z) | 6.150 | 09/01/16 | 730,000 | 792,523 |
| Discover Bank | 7.000 | 04/15/20 | 270,000 | 295,432 |
| Discover Financial Services(Z) | 10.250 | 07/15/19 | 585,000 | 747,325 |
| Nelnet, Inc. (7.400% to 09/29/2011, then 3 month LIBOR + | ||||
| 3.375%)(Z) | 7.400 | 09/29/36 | 715,000 | 642,934 |
| Diversified Financial Services 10.28% | ||||
| American Honda Finance Corp.(S)(Z) | 7.625 | 10/01/18 | 655,000 | 805,624 |
| Astoria Depositor Corp., Series B(S) | 8.144 | 05/01/21 | 1,000,000 | 1,000,000 |
| Bank of America Corp. | 6.500 | 08/01/16 | 305,000 | 337,602 |
| Bank of America NA | 6.000 | 10/15/36 | 390,000 | 366,214 |
| Bank of America NA | 5.300 | 03/15/17 | 150,000 | 153,097 |
| Beaver Valley Funding(Z) | 9.000 | 06/01/17 | 498,000 | 562,586 |
| Bosphorus Financial Services, Ltd.(P)(S)(Z) | 2.086 | 02/15/12 | 156,250 | 154,147 |
| Citigroup, Inc.(Z) | 6.375 | 08/12/14 | 810,000 | 904,052 |
| Citigroup, Inc.(Z) | 6.125 | 11/21/17 | 1,935,000 | 2,122,892 |
| Citigroup, Inc.(Z) | 5.850 | 12/11/34 | 300,000 | 285,651 |
| Crown Castle Towers LLC(S)(Z) | 4.883 | 08/15/20 | 760,000 | 742,707 |
| ERAC USA Finance LLC(S)(Z) | 6.375 | 10/15/17 | 465,000 | 516,968 |
| General Electric Capital Corp.(Z) | 6.000 | 08/07/19 | 335,000 | 371,737 |
| Harley-Davidson Funding Corp.(S) | 6.800 | 06/15/18 | 300,000 | 323,223 |
| Harley-Davidson Funding Corp.(S)(Z) | 5.750 | 12/15/14 | 290,000 | 308,373 |
| Hyundai Capital Services, Inc.(S)(Z) | 6.000 | 05/05/15 | 430,000 | 465,677 |
| International Lease Finance Corp.(S) | 7.125 | 09/01/18 | 290,000 | 312,475 |
| JPMorgan Chase & Company(Z) | 6.000 | 01/15/18 | 765,000 | 849,703 |
| JPMorgan Chase & Company(Z) | 3.700 | 01/20/15 | 590,000 | 612,934 |
| JPMorgan Chase & Company, Series 1 (7.900% to | ||||
| 04/30/2018, then 3 month LIBOR + 3.470%)(Z) | 7.900 | (Q) | 655,000 | 705,979 |
| Merrill Lynch & Company, Inc.(Z) | 7.750 | 05/14/38 | 495,000 | 537,100 |
| Merrill Lynch & Company, Inc.(Z) | 6.875 | 04/25/18 | 1,000,000 | 1,108,242 |
| Nationstar Mortgage/Nationstar Capital Corp.(S) | 10.875 | 04/01/15 | 485,000 | 487,425 |
| Pinafore LLC/Pinafore, Inc.(S) | 9.000 | 10/01/18 | 135,000 | 149,006 |
| Textron Financial Corp. (6.000% to 02/15/2017, then 3 month | ||||
| LIBOR + 1.735%)(S) | 6.000 | 02/15/67 | 530,000 | 445,863 |
| The Bear Stearns Companies LLC(Z) | 7.250 | 02/01/18 | 1,000,000 | 1,180,408 |
| USB Realty Corp. (6.091% to 01/15/2012, then 3 month | ||||
| LIBOR + 1.147%)(S)(Z) | 6.091 | (Q) | 800,000 | 616,000 |
| Woodside Finance, Ltd.(S)(Z) | 4.500 | 11/10/14 | 1,100,098 | 1,164,697 |
| Insurance 6.03% | ||||
| Aflac, Inc.(Z) | 8.500 | 05/15/19 | 385,000 | 475,435 |
| Aflac, Inc.(Z) | 6.900 | 12/17/39 | 230,000 | 244,240 |
| AXA SA (6.379% to 12/13/2036, then 3 month LIBOR + | ||||
| 2.256%)(S) | 6.379 | (Q) | 175,000 | 156,187 |
| Chubb Corp. (6.375% until 04/15/2017, then 3 month LIBOR | ||||
| + 2.250%) | 6.375 | 03/29/67 | 315,000 | 333,900 |
| CNA Financial Corp. | 7.350 | 11/15/19 | 360,000 | 395,571 |
| CNA Financial Corp. | 7.250 | 11/15/23 | 100,000 | 106,422 |
| CNA Financial Corp.(Z) | 6.500 | 08/15/16 | 720,000 | 778,455 |
| CNO Financial Group, Inc.(S) | 9.000 | 01/15/18 | 375,000 | 394,688 |
| Hartford Financial Services Group, Inc. | 6.625 | 03/30/40 | 190,000 | 193,066 |
| Hartford Financial Services Group, Inc. | 6.300 | 03/15/18 | 430,000 | 463,017 |
| 4 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Financials (continued) | ||||
|
| ||||
| Liberty Mutual Group, Inc.(S)(Z) | 7.800 | 03/15/37 | $705,000 | $705,000 |
| Liberty Mutual Group, Inc.(S) | 7.500 | 08/15/36 | 885,000 | 884,262 |
| Lincoln National Corp.(Z) | 8.750 | 07/01/19 | 535,000 | 671,247 |
| Lincoln National Corp. | 7.000 | 06/15/40 | 160,000 | 177,659 |
| Lincoln National Corp. (6.050% until 04/20/2017, then 3 | ||||
| month LIBOR + 2.040%)(Z) | 6.050 | 04/20/67 | 490,000 | 466,725 |
| Massachusetts Mutual Life Insurance Company(S)(Z) | 8.875 | 06/01/39 | 210,000 | 279,605 |
| MetLife, Inc. | 10.750 | 08/01/39 | 150,000 | 208,125 |
| New York Life Insurance Company(S)(Z) | 6.750 | 11/15/39 | 350,000 | 404,980 |
| Prudential Financial, Inc.(Z) | 7.375 | 06/15/19 | 210,000 | 248,818 |
| Teachers Insurance & Annuity Association of America(S)(Z) | 6.850 | 12/16/39 | 605,000 | 688,788 |
| Unum Group(Z) | 7.125 | 09/30/16 | 395,000 | 447,205 |
| UnumProvident Finance Company PLC(S)(Z) | 6.850 | 11/15/15 | 605,000 | 670,871 |
| W.R. Berkley Corp.(Z) | 5.600 | 05/15/15 | 365,000 | 387,400 |
| Willis North America, Inc.(Z) | 7.000 | 09/29/19 | 495,000 | 537,750 |
| Real Estate Investment Trusts 5.27% | ||||
| AMB Property LP(Z) | 6.625 | 12/01/19 | 490,000 | 550,383 |
| BioMed Realty LP | 6.125 | 04/15/20 | 135,000 | 140,745 |
| Brandywine Operating Partnership LP(Z) | 7.500 | 05/15/15 | 345,000 | 383,139 |
| CommonWealth (Z) | 6.650 | 01/15/18 | 480,000 | 505,185 |
| Developers Diversified Realty Corp.(Z) | 7.500 | 04/01/17 | 465,000 | 524,297 |
| Dexus Property Group(S)(Z) | 7.125 | 10/15/14 | 495,000 | 554,631 |
| Duke Realty LP | 8.250 | 08/15/19 | 265,000 | 313,307 |
| Duke Realty LP(Z) | 6.750 | 03/15/20 | 590,000 | 651,824 |
| HCP, Inc. | 5.375 | 02/01/21 | 705,000 | 709,575 |
| Health Care, Inc.(Z) | 6.200 | 06/01/16 | 505,000 | 560,187 |
| Health Care, Inc. | 4.950 | 01/15/21 | 400,000 | 388,055 |
| Healthcare Realty Trust, Inc.(Z) | 6.500 | 01/17/17 | 540,000 | 598,754 |
| Mack-Cali Realty LP(Z) | 7.750 | 08/15/19 | 330,000 | 381,481 |
| Post Apartment Homes LP | 4.750 | 10/15/17 | 185,000 | 180,181 |
| ProLogis(Z) | 6.625 | 05/15/18 | 700,000 | 773,550 |
| Simon Property Group LP(Z) | 10.350 | 04/01/19 | 345,000 | 471,029 |
| Simon Property Group LP(Z) | 4.375 | 03/01/21 | 235,000 | 231,696 |
| Vornado Realty LP(Z) | 4.250 | 04/01/15 | 755,000 | 772,262 |
| WEA Finance LLC/WT Finance Australia Property, Ltd.(S) | 6.750 | 09/02/19 | 290,000 | 326,206 |
| Real Estate Management & Development 0.12% | ||||
| Realogy Corp.(S) | 7.875 | 02/15/19 | 215,000 | 216,075 |
| Health Care 2.49% | 4,266,553 | |||
|
| ||||
| Health Care Equipment & Supplies 1.22% | ||||
| Alere, Inc. | 8.625 | 10/01/18 | 185,000 | 192,400 |
| Alere, Inc. | 7.875 | 02/01/16 | 335,000 | 345,469 |
| Covidien International Finance SA(Z) | 5.450 | 10/15/12 | 930,000 | 999,901 |
| Hospira, Inc.(Z) | 6.050 | 03/30/17 | 485,000 | 544,931 |
| Health Care Providers & Services 0.60% | ||||
| BioScrip, Inc. | 10.250 | 10/01/15 | 285,000 | 302,100 |
| Gentiva Health Services, Inc. | 11.500 | 09/01/18 | 70,000 | 78,138 |
| Medco Health Solutions, Inc.(Z) | 7.125 | 03/15/18 | 545,000 | 640,198 |
| Life Sciences Tools & Services 0.12% | ||||
| Bio-Rad Laboratories, Inc. | 4.875 | 12/15/20 | 220,000 | 213,950 |
| Pharmaceuticals 0.55% | ||||
| Catalent Pharma Solutions, Inc., PIK | 9.500 | 04/15/15 | 425,756 | 434,803 |
| 5 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Health Care (continued) | ||||
|
| ||||
| Endo Pharmaceuticals Holdings, Inc.(S) | 7.000 | 12/15/20 | $90,000 | $93,150 |
| Valeant Pharmaceuticals International, Inc.(S) | 6.875 | 12/01/18 | 315,000 | 323,663 |
| Valeant Pharmaceuticals International, Inc.(S) | 6.750 | 10/01/17 | 95,000 | 97,850 |
| Industrials 7.95% | 13,602,370 | |||
|
| ||||
| Aerospace & Defense 0.66% | ||||
| Bombardier, Inc.(S) | 7.750 | 03/15/20 | 240,000 | 262,800 |
| Colt Finance Corp.(S) | 8.750 | 11/15/17 | 250,000 | 206,250 |
| Embraer Overseas, Ltd.(Z) | 6.375 | 01/15/20 | 380,000 | 400,425 |
| Kratos Defense & Security Solutions, Inc. | 10.000 | 06/01/17 | 230,000 | 256,738 |
| Airlines 2.35% | ||||
| America West Airlines | 8.057 | 07/02/20 | 203,557 | 214,753 |
| Continental Airlines, Inc.(Z) | 8.307 | 04/02/18 | 161,785 | 166,234 |
| Continental Airlines, Inc. | 6.648 | 09/15/17 | 163,409 | 172,397 |
| Continental Airlines, Inc.(Z) | 6.545 | 02/02/19 | 220,778 | 235,128 |
| Continental Airlines, Inc.(Z) | 5.983 | 04/19/22 | 545,011 | 572,262 |
| Delta Air Lines, Inc.(Z) | 6.821 | 08/10/22 | 654,109 | 698,262 |
| Delta Air Lines, Inc. | 6.200 | 07/02/18 | 222,366 | 236,264 |
| Northwest Airlines, Inc.(Z) | 7.027 | 11/01/19 | 423,382 | 444,551 |
| Northwest Airlines, Inc.(Z) | 6.264 | 11/20/21 | 565,618 | 582,586 |
| United Air Lines, Inc. | 10.400 | 11/01/16 | 184,140 | 213,142 |
| United Air Lines, Inc.(Z) | 9.750 | 01/15/17 | 419,898 | 483,932 |
| Building Materials 0.58% | ||||
| Voto-Votorantim Overseas Trading Operations NV(S)(Z) | 6.625 | 09/25/19 | 450,000 | 471,938 |
| Voto-Votorantim, Ltd.(S) | 6.750 | 04/05/21 | 490,000 | 516,338 |
| Building Products 0.17% | ||||
| Masco Corp. | 7.125 | 03/15/20 | 285,000 | 297,279 |
| Commercial Services & Supplies 0.69% | ||||
| Covanta Holding Corp. | 7.250 | 12/01/20 | 455,000 | 467,597 |
| Garda World Security Corp.(S) | 9.750 | 03/15/17 | 100,000 | 107,250 |
| Interactive Data Corp.(S) | 10.250 | 08/01/18 | 110,000 | 121,825 |
| Steelcase, Inc. | 6.375 | 02/15/21 | 480,000 | 486,687 |
| Construction & Engineering 0.20% | ||||
| Tutor Perini Corp.(S) | 7.625 | 11/01/18 | 335,000 | 341,700 |
| Electrical Equipment 0.12% | ||||
| Coleman Cable, Inc. | 9.000 | 02/15/18 | 205,000 | 212,175 |
| Industrial Conglomerates 0.99% | ||||
| Hutchison Whampoa International, Ltd.(S)(Z) | 6.500 | 02/13/13 | 365,000 | 398,471 |
| Hutchison Whampoa International, Ltd.(S)(Z) | 5.750 | 09/11/19 | 615,000 | 664,036 |
| Odebrecht Finance, Ltd.(S) | 7.500 | 09/14/15 | 100,000 | 100,875 |
| Textron, Inc.(Z) | 5.600 | 12/01/17 | 505,000 | 530,790 |
| Marine 0.13% | ||||
| Navios Maritime Holdings, Inc./Navios Maritime Finance II | ||||
| US, Inc.(S) | 8.125 | 02/15/19 | 225,000 | 219,375 |
| Road & Rail 1.02% | ||||
| CSX Corp.(Z) | 6.300 | 03/15/12 | 1,000,000 | 1,056,540 |
| RailAmerica, Inc. | 9.250 | 07/01/17 | 212,000 | 233,995 |
| Western Express, Inc.(S) | 12.500 | 04/15/15 | 485,000 | 448,625 |
| Trading Companies & Distributors 0.77% | ||||
| Aircastle, Ltd. | 9.750 | 08/01/18 | 190,000 | 210,900 |
| 6 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Industrials (continued) | ||||
|
| ||||
| GATX Corp.(Z) | 8.750 | 05/15/14 | $950,000 | $1,101,794 |
| Transportation Infrastructure 0.27% | ||||
| Asciano Finance, Ltd.(S)(Z) | 4.625 | 09/23/20 | 510,000 | 468,456 |
| Information Technology 1.55% | 2,644,486 | |||
|
| ||||
| Electronic Equipment, Instruments & Components 0.61% | ||||
| Freescale Semiconductor, Inc.(Z) | 8.875 | 12/15/14 | 1,000,000 | 1,043,750 |
| IT Services 0.69% | ||||
| Brightstar Corp.(S) | 9.500 | 12/01/16 | 470,000 | 488,800 |
| Equinix, Inc. | 8.125 | 03/01/18 | 165,000 | 178,200 |
| Fiserv, Inc.(Z) | 6.800 | 11/20/17 | 460,000 | 514,323 |
| Software 0.25% | ||||
| Vangent, Inc. | 9.625 | 02/15/15 | 445,000 | 419,413 |
| Materials 5.36% | 9,181,519 | |||
|
| ||||
| Chemicals 0.59% | ||||
| American Pacific Corp.(Z) | 9.000 | 02/01/15 | 245,000 | 240,100 |
| Incitec Pivot Finance LLC(S)(Z) | 6.000 | 12/10/19 | 345,000 | 354,113 |
| Sterling Chemicals, Inc.(Z) | 10.250 | 04/01/15 | 400,000 | 413,000 |
| Construction Materials 0.06% | ||||
| Severstal Columbus LLC(S) | 10.250 | 02/15/18 | 100,000 | 108,750 |
| Containers & Packaging 0.68% | ||||
| Graphic Packaging International, Inc. | 9.500 | 06/15/17 | 205,000 | 227,038 |
| Graphic Packaging International, Inc. | 7.875 | 10/01/18 | 105,000 | 111,300 |
| Solo Cup Company | 10.500 | 11/01/13 | 85,000 | 89,675 |
| Temple-Inland, Inc.(Z) | 6.875 | 01/15/18 | 545,000 | 572,858 |
| U.S. Corrugated, Inc. | 10.000 | 06/12/13 | 160,000 | 156,800 |
| Metals & Mining 2.57% | ||||
| Allegheny Technologies, Inc.(Z) | 9.375 | 06/01/19 | 280,000 | 347,645 |
| Allegheny Technologies, Inc. | 5.950 | 01/15/21 | 140,000 | 146,187 |
| ArcelorMittal(Z) | 9.850 | 06/01/19 | 370,000 | 474,726 |
| Commercial Metals Company(Z) | 7.350 | 08/15/18 | 310,000 | 318,386 |
| Gerdau Trade, Inc.(S) | 5.750 | 01/30/21 | 330,000 | 330,825 |
| Rain CII Carbon LLC(S) | 8.000 | 12/01/18 | 555,000 | 588,300 |
| Rio Tinto Alcan, Inc.(Z) | 6.125 | 12/15/33 | 415,000 | 433,544 |
| Teck Resources, Ltd.(Z) | 10.750 | 05/15/19 | 1,100,000 | 1,430,000 |
| Vale Overseas, Ltd. | 6.875 | 11/10/39 | 320,000 | 337,777 |
| Paper & Forest Products 1.46% | ||||
| Boise Paper Holdings LLC/Boise Co-Issuer Company | 8.000 | 04/01/20 | 100,000 | 108,250 |
| Georgia-Pacific LLC(S) | 7.125 | 01/15/17 | 475,000 | 505,875 |
| Georgia-Pacific LLC(S)(Z) | 5.400 | 11/01/20 | 580,000 | 572,181 |
| International Paper Company(Z) | 9.375 | 05/15/19 | 385,000 | 496,832 |
| Mercer International, Inc.(S) | 9.500 | 12/01/17 | 105,000 | 110,250 |
| PE Paper Escrow GmbH(S) | 12.000 | 08/01/14 | 100,000 | 116,517 |
| Verso Paper Holdings LLC/Verso Paper, Inc.(S) | 8.750 | 02/01/19 | 100,000 | 103,625 |
| Westvaco Corp.(Z) | 7.950 | 02/15/31 | 475,000 | 486,965 |
| Telecommunication Services 4.51% | 7,715,035 | |||
|
| ||||
| Diversified Telecommunication Services 2.60% | ||||
| Affinion Group Holdings, Inc.(S) | 11.625 | 11/15/15 | 235,000 | 242,050 |
| Axtel SAB de CV(S) | 9.000 | 09/22/19 | 160,000 | 157,200 |
| 7 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Telecommunication Services (continued) | ||||
|
| ||||
| BellSouth Telecommunications, Inc.(Z) | 6.300 | 12/15/15 | $622,765 | $674,389 |
| Frontier Communications Corp.(Z) | 8.500 | 04/15/20 | 635,000 | 715,963 |
| Intelsat Jackson Holdings SA | 11.500 | 06/15/16 | 365,000 | 393,288 |
| Qwest Corp.(Z) | 8.375 | 05/01/16 | 330,000 | 395,175 |
| Telecom Italia Capital SA(Z) | 6.175 | 06/18/14 | 1,110,000 | 1,183,107 |
| West Corp.(Z) | 11.000 | 10/15/16 | 630,000 | 687,488 |
| Wireless Telecommunication Services 1.91% | ||||
| America Movil SAB de CV(Z) | 5.000 | 03/30/20 | 440,000 | 456,137 |
| Bakrie Telecom Pte, Ltd.(S) | 11.500 | 05/07/15 | 405,000 | 436,388 |
| Digicel Group, Ltd.(S)(Z) | 8.875 | 01/15/15 | 1,080,000 | 1,113,750 |
| NII Capital Corp. | 10.000 | 08/15/16 | 230,000 | 257,600 |
| Sprint Capital Corp.(Z) | 6.900 | 05/01/19 | 1,000,000 | 1,002,500 |
| Utilities 6.23% | 10,653,497 | |||
|
| ||||
| Electric Utilities 4.32% | ||||
| Allegheny Energy Supply Company LLC(S)(Z) | 5.750 | 10/15/19 | 460,000 | 463,523 |
| BVPS II Funding Corp.(Z) | 8.890 | 06/01/17 | 550,000 | 618,306 |
| Commonwealth Edison Company(Z) | 5.800 | 03/15/18 | 525,000 | 587,967 |
| Exelon Corp.(Z) | 4.900 | 06/15/15 | 985,000 | 1,050,424 |
| Exelon Generation Company LLC | 6.250 | 10/01/39 | 265,000 | 260,088 |
| FirstEnergy Solutions Corp.(Z) | 4.800 | 02/15/15 | 370,000 | 389,437 |
| FPL Energy National Wind LLC(S)(Z) | 5.608 | 03/10/24 | 270,256 | 271,999 |
| ITC Holdings Corp.(S)(Z) | 5.500 | 01/15/20 | 415,000 | 436,355 |
| KCP&L Greater Missouri Operations Company(Z) | 11.875 | 07/01/12 | 515,000 | 581,739 |
| Oncor Electric Delivery Company LLC(S)(Z) | 5.000 | 09/30/17 | 820,000 | 874,633 |
| PNPP II Funding Corp.(Z) | 9.120 | 05/30/16 | 297,000 | 318,069 |
| Teco Finance, Inc.(Z) | 6.572 | 11/01/17 | 298,000 | 338,089 |
| Texas Competitive Electric Holdings Company LLC, Series | ||||
| A(Z) | 10.250 | 11/01/15 | 1,000,000 | 615,000 |
| TXU Corp.(Z) | 7.460 | 01/01/15 | 198,077 | 187,040 |
| Waterford 3 Funding Corp. | 8.090 | 01/02/17 | 386,792 | 391,066 |
| Independent Power Producers & Energy Traders 0.90% | ||||
| AES Eastern Energy LP, Series 199-A(Z) | 9.000 | 01/02/17 | 801,512 | 801,512 |
| NRG Energy, Inc.(S) | 8.250 | 09/01/20 | 355,000 | 364,319 |
| NRG Energy, Inc.(S) | 7.625 | 01/15/18 | 370,000 | 374,625 |
| Multi-Utilities 0.54% | ||||
| Integrys Energy Group, Inc. (6.110% to 12/01/2016, then 3 | ||||
| month LIBOR + 2.120%)(Z) | 6.110 | 12/01/66 | 650,000 | 630,500 |
| Wisconsin Energy Corp. (6.250% to 05/15/2017, then 3 | ||||
| month LIBOR + 2.113%) | 6.250 | 05/15/67 | 300,000 | 299,250 |
| Water Utilities 0.47% | ||||
| Cia de Saneamento Basico do Estado de Sao Paulo(S) | 6.250 | 12/16/20 | 305,000 | 305,000 |
| Midwest Generation LLC, Series B(Z) | 8.560 | 01/02/16 | 492,095 | 494,556 |
| Convertible Bonds 0.56% | $957,330 | |||
|
| ||||
| (Cost $811,144) | ||||
| Consumer Discretionary 0.56% | 957,330 | |||
|
| ||||
| Media 0.56% | ||||
| XM Satellite Radio, Inc.(S)(Z) | 7.000 | 12/01/14 | 750,000 | 957,330 |
| 8 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Municipal Bonds 0.14% | $233,955 | |||
|
| ||||
| (Cost $227,135) | ||||
| California 0.14% | 233,955 | |||
|
| ||||
| State of California | 7.600 | 11/01/40 | $225,000 | 233,955 |
| Term Loans (M) 0.58% | $985,768 | |||
|
| ||||
| (Cost $1,083,160) | ||||
| Consumer Discretionary 0.58% | 985,768 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.38% | ||||
| Dunkin Brands, Inc. | 5.750 | 11/23/17 | 200,000 | 203,141 |
| East Valley Tourist Development Authority | 12.000 | 08/06/12 | 530,751 | 443,177 |
| Media 0.20% | ||||
| Vertis, Inc. | 12.000 | 12/31/15 | 365,000 | 339,450 |
| Capital Preferred Securities 1.73% | $2,959,856 | |||
|
| ||||
| (Cost $2,966,021) | ||||
| Financials 1.73% | 2,959,856 | |||
|
| ||||
| Capital Markets 0.71% | ||||
| State Street Capital Trust III (8.250% to 03/15/2011, then 3 | ||||
| month LIBOR + 4.990%)(Z) | 8.250 | (Q) | 520,000 | 524,883 |
| State Street Capital Trust IV(P)(Z) | 1.302 | 06/15/37 | 905,000 | 697,167 |
| Commercial Banks 1.02% | ||||
| Fifth Third Capital Trust IV (6.500% to 04/15/2017 then 3 | ||||
| month LIBOR + 1.368%) | 6.500 | 04/15/37 | 385,000 | 377,300 |
| PNC Preferred Funding Trust III (8.700% to 03/15/2013 then | ||||
| 3 month LIBOR + 5.226%)(S)(Z) | 8.700 | (Q) | 835,000 | 884,883 |
| Sovereign Capital Trust VI(Z) | 7.908 | 06/13/36 | 480,000 | 475,623 |
| U.S. Government & Agency Obligations 39.22% | $67,130,337 | |||
|
| ||||
| (Cost $67,778,451) | ||||
| U.S. Government 7.13% | 12,198,965 | |||
|
| ||||
| U.S. Treasury Bonds | ||||
| Bond (Z) | 3.875 | 08/15/40 | 3,330,000 | 2,946,531 |
| U.S. Treasury Notes | ||||
| Note (Z) | 2.625 | 11/15/20 | 4,450,000 | 4,169,788 |
| Note (Z) | 1.250 | 08/31/15 | 3,225,000 | 3,151,683 |
| Note (Z) | 1.250 | 09/30/15 | 1,980,000 | 1,930,963 |
| U.S. Government Agency 32.09% | 54,931,372 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| 30 Yr Pass Thru Ctf | 6.500 | 06/01/37 | 64,543 | 71,603 |
| 30 Yr Pass Thru Ctf | 6.500 | 10/01/37 | 122,197 | 135,564 |
| 30 Yr Pass Thru Ctf | 6.500 | 11/01/37 | 226,873 | 252,185 |
| 30 Yr Pass Thru Ctf | 6.500 | 12/01/37 | 111,515 | 123,712 |
| 30 Yr Pass Thru Ctf | 6.500 | 12/01/37 | 75,302 | 83,538 |
| 30 Yr Pass Thru Ctf | 6.500 | 03/01/38 | 225,799 | 250,497 |
| 30 Yr Pass Thru Ctf | 6.500 | 04/01/39 | 3,000,662 | 3,328,878 |
| 30 Yr Pass Thru Ctf | 6.500 | 09/01/39 | 197,631 | 219,249 |
| 30 Yr Pass Thru Ctf | 4.000 | 09/01/40 | 6,020,102 | 5,963,451 |
| 9 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| U.S. Government Agency (continued) | ||||
|
| ||||
| Federal National Mortgage Association | ||||
| 15 Yr Pass Thru Ctf | 4.000 | 06/01/24 | $1,255,175 | $1,292,992 |
| 15 Yr Pass Thru Ctf | 4.000 | 06/01/24 | 2,944,450 | 3,033,162 |
| 30 Yr Pass Thru Ctf | 6.500 | 07/01/36 | 933,104 | 1,040,891 |
| 30 Yr Pass Thru Ctf | 6.500 | 01/01/39 | 4,600,045 | 5,111,289 |
| 30 Yr Pass Thru Ctf | 6.500 | 03/01/39 | 262,699 | 293,167 |
| 30 Yr Pass Thru Ctf | 6.500 | 06/01/39 | 376,572 | 420,072 |
| 30 Yr Pass Thru Ctf | 5.500 | 02/01/36 | 2,098,050 | 2,250,061 |
| 30 Yr Pass Thru Ctf | 5.500 | 12/01/36 | 6,464,525 | 6,916,739 |
| 30 Yr Pass Thru Ctf | 5.500 | 06/01/37 | 1,173,738 | 1,254,744 |
| 30 Yr Pass Thru Ctf | 5.500 | 06/01/38 | 2,251,023 | 2,402,862 |
| 30 Yr Pass Thru Ctf | 5.500 | 10/01/39 | 4,888,530 | 5,225,915 |
| 30 Yr Pass Thru Ctf | 4.500 | 10/01/40 | 3,516,364 | 3,607,959 |
| 30 Yr Pass Thru Ctf | 4.000 | 08/01/40 | 7,395,232 | 7,337,195 |
| 30 Yr Pass Thru Ctf | 4.000 | 10/01/40 | 2,714,981 | 2,693,674 |
| 30 Yr Pass Thru Ctf | 4.000 | 10/01/40 | 834,616 | 829,110 |
| Government National Mortgage Association | ||||
| 30 Yr Pass Thru Ctf | 5.500 | 11/15/38 | 733,395 | 792,863 |
| Collateralized Mortgage Obligations 11.78% | $20,154,274 | |||
|
| ||||
| (Cost $23,077,681) | ||||
| Commercial & Residential 9.35% | 15,995,414 | |||
|
| ||||
| American Home Mortgage Assets | ||||
| Series 2006-6, Class XP IO | 2.373 | 12/25/46 | 9,461,550 | 557,529 |
| American Tower Trust | ||||
| Series 2007-1A, Class D (S) | 5.957 | 04/15/37 | 865,000 | 914,827 |
| Bear Stearns Adjustable Rate Mortgage Trust | ||||
| Series 2005-1, Class B2 (P) | 3.582 | 03/25/35 | 786,801 | 97,109 |
| Bear Stearns Alt-A Trust | ||||
| Series 2005-3, Class B2 (P) | 2.713 | 04/25/35 | 542,120 | 32,172 |
| Bear Stearns Commercial Mortgage Securities, Inc. | ||||
| Series 2006-PW14, Class D (S) | 5.412 | 12/11/38 | 655,000 | 240,788 |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||
| Series 2005-CD1, Class C (P) | 5.222 | 07/15/44 | 295,000 | 266,454 |
| Countrywide Alternative Loan Trust | ||||
| Series 2006-OA12, Class X IO | 2.828 | 09/20/46 | 13,466,851 | 909,012 |
| First Horizon Alternative Mortgage Securities | ||||
| Series 2004-AA5, Class B1 (P) | 2.382 | 12/25/34 | 408,459 | 39,203 |
| GSR Mortgage Loan Trust | ||||
| Series 2006-4F, Class 6A1 | 6.500 | 05/25/36 | 2,841,060 | 2,421,975 |
| Series 2004-9, Class B1(P) | 3.571 | 08/25/34 | 799,459 | 315,703 |
| Harborview Mortgage Loan Trust | ||||
| Series 2005-11, Class X IO | 2.241 | 08/19/45 | 3,265,289 | 150,395 |
| Series 2005-2, Class X IO | 2.321 | 05/19/35 | 13,829,231 | 754,889 |
| Series 2005-8, Class 1X IO | 2.345 | 09/19/35 | 5,580,525 | 297,446 |
| Series 2007-3, Class ES IO | 0.349 | 05/19/47 | 14,123,358 | 92,508 |
| Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 16,930,328 | 93,794 |
| Series 2007-6, Class ES IO (S) | 0.342 | 08/19/37 | 11,849,191 | 75,716 |
| IndyMac Index Mortgage Loan Trust | ||||
| Series 2004-AR13, Class B1 | 5.296 | 01/25/35 | 317,772 | 26,611 |
| Series 2005-AR18, Class 1X IO | 2.217 | 10/25/36 | 11,475,964 | 516,418 |
| Series 2005-AR18, Class 2X IO | 1.917 | 10/25/36 | 10,874,117 | 489,335 |
| Series 2005-AR5, Class B1(P) | 2.773 | 05/25/35 | 423,034 | 9,464 |
| 10 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Commercial & Residential (continued) | ||||
|
| ||||
| JPMorgan Chase Commercial Mortgage Securities Corp. | ||||
| Series 2006-LDP7, Class AM (P) | 5.875 | 04/15/45 | $535,000 | $556,135 |
| Series 2005-LDP4, Class B (P) | 5.129 | 10/15/42 | 2,035,000 | 1,773,404 |
| Merrill Lynch Mortgage Investors Trust | ||||
| Series 2006-AF1, Class MF1 (H) | 6.476 | 08/25/36 | 541,941 | 5 |
| MLCC Mortgage Investors, Inc. | ||||
| Series 2006-3, Class 2A1 (P) | 6.001 | 10/25/36 | 847,320 | 791,453 |
| Series 2007-3, Class M1 (P) | 5.511 | 09/25/37 | 340,133 | 194,608 |
| Series 2007-3, Class M2 (P) | 5.511 | 09/25/37 | 125,526 | 62,330 |
| Series 2007-3, Class M3 (P) | 5.511 | 09/25/37 | 85,034 | 37,962 |
| Morgan Stanley Capital I | ||||
| Series 2008-HQ8, Class AM (P) | 5.438 | 03/12/44 | 1,020,000 | 1,059,945 |
| Provident Funding Mortgage Loan Trust | ||||
| Series 2005-1, Class B1 (P) | 2.850 | 05/25/35 | 396,641 | 95,351 |
| Thornburg Mortgage Securities Trust | ||||
| Series 2004-1, Class II2A (P) | 1.947 | 03/25/44 | 890,670 | 833,173 |
| Washington Mutual, Inc. | ||||
| Series 2005-AR1, Class X IO | 1.618 | 01/25/45 | 19,710,533 | 806,037 |
| Series 2005-AR12, Class 1A2 (P) | 2.723 | 10/25/35 | 319,700 | 312,479 |
| Series 2005-AR4, Class B1 (P) | 2.719 | 04/25/35 | 1,472,771 | 334,131 |
| Series 2005-AR8, Class X IO | 1.710 | 07/25/45 | 16,143,610 | 837,053 |
| U.S. Government Agency 2.43% | 4,158,860 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| Series 3747, Class HI IO | 4.500 | 07/15/37 | 6,907,210 | 1,071,844 |
| Series 3794, Class PI IO | 4.500 | 02/15/38 | 1,225,000 | 217,078 |
| Federal National Mortgage Association | ||||
| Series 2009-47, Class EI IO | 5.000 | 08/25/19 | 1,119,814 | 118,490 |
| Series 2010-68, Class CI IO | 5.000 | 11/25/38 | 1,580,743 | 305,547 |
| Series 398, Class C3 IO | 4.500 | 05/25/39 | 1,625,683 | 365,039 |
| Series 401, Class C2 IO | 4.500 | 06/25/39 | 1,052,269 | 225,069 |
| Series 402, Class 3 IO | 4.000 | 11/25/39 | 1,206,984 | 249,340 |
| Series 402, Class 4 IO | 4.000 | 10/25/39 | 2,130,326 | 444,166 |
| Series 402, Class 7 IO | 4.500 | 11/25/39 | 1,895,599 | 420,442 |
| Series 402, Class 8 IO | 4.500 | 11/25/39 | 2,273,708 | 495,988 |
| Government National Mortgage Association | ||||
| Series 2010-78, Class AI IO | 4.500 | 04/20/39 | 1,797,962 | 245,857 |
| Asset Backed Securities 2.22% | $3,796,185 | |||
|
| ||||
| (Cost $3,735,512) | ||||
| Asset Backed Securities 2.22% | 3,796,185 | |||
|
| ||||
| Bravo Mortgage Asset Trust | ||||
| Series 2006-1A, Class A2 (P) (S) | 0.500 | 07/25/36 | 660,784 | 571,170 |
| ContiMortgage Home Equity Loan Trust | ||||
| Series 1995-2, Class A-5 | 8.100 | 08/15/25 | 37,988 | 37,073 |
| Hertz Vehicle Financing LLC | ||||
| Series 2009-2A, Class A2 (S) | 5.290 | 03/25/16 | 760,000 | 834,743 |
| Leaf II Receivables Funding LLC | ||||
| Series 2011-1, Class A (S) | 1.700 | 12/20/18 | 620,000 | 603,531 |
| Merrill Lynch Mortgage Investors, Inc. | ||||
| Series 2005-HE2, Class A2C (P) | 0.630 | 09/25/36 | 670,000 | 604,822 |
| Novastar Home Equity Loan | ||||
| Series 2004-4, Class M3 (P) | 1.340 | 03/25/35 | 645,000 | 594,869 |
| 11 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Maturity | Par value | |||
| Rate (%) | date | Value | ||
| Asset Backed Securities (continued) | ||||
|
| ||||
| Park Place Securities, Inc. | ||||
| Series 2004-WHQ2, Class M2 (P) | 0.890 | 02/25/35 | $605,000 | $549,977 |
| Shares | Value | |||
| Common Stocks 1.84% | $3,155,881 | |||
|
| ||||
| (Cost $2,885,089) | ||||
| Consumer Discretionary 0.05% | 84,924 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.05% | ||||
| Greektown Superholdings, Inc. (I) | 768 | 84,924 | ||
| Energy 0.33% | 567,920 | |||
|
| ||||
| Oil, Gas & Consumable Fuels 0.33% | ||||
| Royal Dutch Shell PLC, ADR (I)(Z) | 8,000 | 567,920 | ||
| Health Care 0.29% | 493,581 | |||
|
| ||||
| Pharmaceuticals 0.29% | ||||
| Johnson & Johnson (Z) | 8,258 | 493,581 | ||
| Information Technology 0.32% | 557,960 | |||
|
| ||||
| Semiconductors & Semiconductor Equipment 0.32% | ||||
| Intel Corp. (Z) | 26,000 | 557,960 | ||
| Materials 0.85% | 1,451,496 | |||
|
| ||||
| Containers & Packaging 0.85% | ||||
| Smurfit-Stone Container Corp. (I)(Z) | 38,862 | 1,451,496 | ||
| Shares | Value | |||
| Preferred Securities 3.91% | $6,687,512 | |||
|
| ||||
| (Cost $6,497,532) | ||||
| Consumer Discretionary 0.97% | 1,657,686 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.97% | ||||
| Greektown Superholdings, Inc., Series A (I) | 14,991 | 1,657,686 | ||
| Consumer Staples 0.57% | 978,125 | |||
|
| ||||
| Food & Staples Retailing 0.57% | ||||
| Ocean Spray Cranberries, Inc., Series A, 6.250% (S)(Z) | 12,500 | 978,125 | ||
| Energy 0.18% | 307,372 | |||
|
| ||||
| Oil, Gas & Consumable Fuels 0.18% | ||||
| Apache Corp., Series D, 6.000% | 4,697 | 307,372 | ||
| Financials 1.86% | 3,173,001 | |||
|
| ||||
| Diversified Financial Services 0.47% | ||||
| Bank of America Corp., Series MER, 8.625% (Z) | 26,575 | 699,454 | ||
| Citigroup Capital XIII (7.875% to 10/30/2015, then 3 month LIBOR + | ||||
| 6.370%) | 3,900 | 104,247 | ||
| 12 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| Shares | Value | |||
| Financials (continued) | ||||
|
| ||||
| Real Estate Investment Trusts 1.39% | ||||
| Apartment Investment & Management Company, Series T, 8.000% | ||||
| (Z) | 55,000 | $1,389,300 | ||
| Public Storage, Inc., Depositary Shares, Series W, 6.500% (Z) | 40,000 | 980,000 | ||
| Telecommunication Services 0.33% | 571,328 | |||
|
| ||||
| Wireless Telecommunication Services 0.33% | ||||
| Telephone & Data Systems, Inc., Series A, 7.600% | 22,600 | 571,328 | ||
| Short-Term Investments 1.81% | $3,100,000 | |||
|
| ||||
| (Cost $3,100,000) | ||||
| Maturity | Par value | |||
| Yield* (%) | date | Value | ||
| Short-Term Securities 1.81% | 3,100,000 | |||
|
| ||||
| Federal Home Loan Bank Discount Notes | 0.100 | 02/01/11 | 3,100,000 | 3,100,000 |
| Total investments (Cost $248,360,342)† 148.19% | $253,602,049 | |||
|
| ||||
| Other assets and liabilities, net (48.19%) | ($82,464,888) | |||
|
| ||||
| Total net assets 100.00% | $171,137,161 | |||
|
| ||||
The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.
ADR American Depositary Receipts
IO Interest Only Security - Interest Tranche of Stripped Mortgage Pool
LIBOR London Interbank Offered Rate
PIK Payment-in-kind
(H) Non-income producing - Issuer is in default.
(I) Non-income producing security.
(M) Term loans are variable rate obligations. The coupon rate shown represents the rate at period end unless the investment is unsettled.
(P) Variable rate obligation. The coupon rate shown represents the rate at period end.
(Q) Perpetual bonds have no stated maturity date.
(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 $48,446,467 or 28.31% of the Fund's net assets as of 01-31-11.
(Z) All or a portion of this security is segregated as collateral pursuant to the Committed Facility Agreement. Total collateral value at 01-31-11 was $125,350,208.
* Yield represents the annualized yield at the date of purchase.
† At 01-31-11, the aggregate cost of investment securities for federal income tax purposes was $248,986,178. Net unrealized appreciation aggregated $4,615,871, of which $14,259,510 related to appreciated investment securities and $9,643,639 related to depreciated investment securities.
| 13 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
The Fund had the following country concentration as a percentage of investments on 01-31-11.
| United States | 87% | |||
| Canada | 2% | |||
| Australia | 2% | |||
| United Kingdom | 1% | |||
| Luxembourg | 1% | |||
| Cayman Islands | 1% | |||
| Bermuda | 1% | |||
| Other Countries | 4% | |||
| Short-Term Investments | 1% |
| 14 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
Notes to the Schedule of Investments
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 securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the values by input classification of the Fund’s investments as of January 31, 2011, by major security category or type:
| Level 2 | Level 3 | |||||||
| Total Market | Significant | Significant | ||||||
| Value at | Level 1 Quoted | Observable | Unobservable | |||||
| 01-31-11 | Price | Inputs | Inputs | |||||
|
| ||||||||
| Corporate Bonds | $ | 144,440,951 | — | $ | 143,959,800 | $ | 481,151 | |
|
| ||||||||
| Convertible Bonds | 957,330 | — | 957,330 | — | ||||
|
| ||||||||
| Municipal Bonds | 233,955 | — | 233,955 | — | ||||
|
| ||||||||
| Term Loans | 985,768 | — | 985,768 | — | ||||
|
| ||||||||
| Capital Preferred Securities | 2,959,856 | — | 2,959,856 | — | ||||
|
| ||||||||
| U.S. Government & Agency Obligations | 67,130,337 | — | 67,130,337 | — | ||||
|
| ||||||||
| Collateralized Mortgage Obligations | 20,154,274 | — | 19,056,013 | 1,098,261 | ||||
|
| ||||||||
| Asset Backed Securities | 3,796,185 | — | 3,192,654 | 603,531 | ||||
|
| ||||||||
| Common Stocks | 3,155,881 | $ | 3,070,957 | — | 84,924 | |||
|
| ||||||||
| Preferred Securities | 6,687,512 | 4,051,701 | 978,125 | 1,657,686 | ||||
|
| ||||||||
| Short-Term Investments | 3,100,000 | — | 3,100,000 | — | ||||
|
| ||||||||
| Total investments in Securities | $ | 253,602,049 | $ | 7,122,658 | $ | 242,553,838 | $ | 3,925,553 |
| Other Financial Instruments: | ||||||||
| Futures | $ | 46,122 | $ | 46,122 | — | — | ||
|
| ||||||||
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the three-month period ended January 31, 2011, there were no significant transfers in or out of Level 1 or Level 2 assets.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. Transfers in or out of Level 3 represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.
| 15 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
| ASSET | COLLATERALIZED | |||||
| BACKED | MORTGAGE | CORPORATE | COMMON | PREFERRED | ||
| SECURITIES | OBLIGATIONS | BONDS | STOCKS | SECURITIES | TOTAL | |
| Balance as of 10-31-10 | — | $1,269,712 | $318,165 | $84,924 | $1,657,686 | $3,330,487 |
| Accrued discounts/ | ||||||
| premiums | $34 | 19 | 174 | — | — | 227 |
| Realized gain (loss) | — | (320,128) | — | — | — | (320,128) |
| Change in unrealized | ||||||
| appreciation | ||||||
| (depreciation) | 38 | 568,943 | 15,212 | — | — | 584,193 |
| Net purchases (sales) | 603,459 | (3,651) | 147,600 | — | — | 747,408 |
| Net transfers in | ||||||
| and/out of Level 3 | — | (416,634) | — | — | — | (416,634) |
| Balance as of 1-31-11 | $603,531 | $1,098,261 | $481,151 | $84,924 | $1,657,686 | $3,925,553 |
In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. 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. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. 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.
Term loans (Floating rate loans). The Fund may invest in term loans, which often include debt securities that are rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual restrictions on resale. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During years of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.
A Fund’s ability to receive payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. A Fund’s failure to receive scheduled payments on a term loan due to a default, bankruptcy or other reason, would adversely affect the Fund’s income and would likely reduce the value of its assets. Because many term loans are not rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively on the subadviser’s credit analysis of the borrower and/or term loan agents. A Fund may have limited rights to enforce the terms of an underlying loan.
Payment-in-kind bonds. The Fund may invest in payment-in-kind bonds (PIK Bonds). PIK Bonds allow the issuer, at its option, to make current interest payments on the bonds either in cash or in additional bonds. The market prices of PIK Bonds are affected to a greater extent by interest rate changes and thereby tend to be more volatile than securities which pay cash interest periodically. The Fund accrues income on these securities and this income is required to be distributed to shareholders. Because no cash is received at the time income accrues on these securities, the Fund may need to sell other investments to make distributions.
| 16 |
John Hancock Income Securities Trust
As of 01-31-11 (Unaudited)
Stripped securities. Stripped mortgage backed securities are financial instruments structured to separate principal and interest cash flows so that one class receives the entire principal from the underlying mortgage assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped mortgage backed security. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully receive its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates. In addition, these securities present additional credit risk such that the Fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.
Futures. A futures contract is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets, contract prices that can be highly volatile and imperfectly correlated to movements in hedged security values and/or interest rates and potential losses in excess of the Fund’s initial investment.Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.
During the three months ended January 31, 2011, the Fund used futures contracts to manage the duration of the portfolio. The following table summarizes the contracts held at January 31, 2011. During the three months ended January 31, 2011, the Fund held futures contracts with notional absolute values ranging from 7.2 million to 7.5 million, as measured at each quarter end.
| UNREALIZED | |||||
| NUMBER OF | EXPIRATION | NOTIONAL | APPRECIATION | ||
| OPEN CONTRACTS | CONTRACTS | POSITION | DATE | VALUE (USD) | (DEPRECIATION) |
|
| |||||
| U.S. Treasury 30-Year Bond | |||||
| Futures | 10 | Long | Mar 2011 | $1,206,250 | ($60,893) |
| U.S. Treasury 10-Year Note | |||||
| Futures | 23 | Short | Mar 2011 | (2,778,328) | 72,708 |
| U.S. Treasury 5-Year Note | |||||
| Futures | 27 | Short | Mar 2011 | (3,197,180) | 34,307 |
| Total | $46,122 | ||||
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the Fund at January 31, 2011 by risk category:
| ASSET | LIABILITY | ||
| DERIVATIVES FAIR | DERIVATIVES FAIR | ||
| RISK | FINANCIAL INSTRUMENTS LOCATION | VALUE | VALUE |
|
| |||
| Interest rate contracts | Futures | $107,015 | ($60,893) |
For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.
| 17 |
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 18, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ Keith F. Hartstein
Keith F. Hartstein
President and Chief Executive Officer
Date: March 18, 2011
By: /s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
Date: March 18, 2011