a_incomesecuritiestrust.htm
   
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
FORM N-Q 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED 
MANAGEMENT INVESTMENT COMPANIES 
 
Investment Company Act file number 811-4186 
 
 
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:  July 31, 2011 

 

ITEM 1. SCHEDULE OF INVESTMENTS




John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Corporate Bonds 78.31% (53.26% of Total Investments)        $137,318,236 
(Cost $128,741,165)         
 
Consumer Discretionary 10.35%        18,140,186 
 
Auto Components 0.70%         
Allison Transmission, Inc. (S)  7.125  05/15/19  $380,000  372,400 
Exide Technologies (S)(Z)  8.625  02/01/18  280,000  285,600 
Hyva Global BV (S)  8.625  03/24/16  340,000  346,800 
Visteon Corp. (S)  6.750  04/15/19  220,000  215,600 
         
Automobiles 0.64%         
Hyundai Capital Services, Inc. (S)(Z)  6.000  05/05/15  430,000  476,810 
Hyundai Capital Services, Inc. (S)(Z)  4.375  07/27/16  310,000  324,209 
Kia Motors Corp. (S)  3.625  06/14/16  315,000  319,982 
         
Consumer Finance 0.61%         
Nissan Motor Acceptance Corp. (S)(Z)  4.500  01/30/15  1,000,000  1,066,473 
         
Food Products 0.15%         
Simmons Foods, Inc. (S)  10.500  11/01/17  250,000  263,125 
         
Hotels, Restaurants & Leisure 2.89%         
CCM Merger, Inc. (S)  8.000  08/01/13  485,000  482,575 
Downstream Development Authority of the Quapaw Tribe of         
Oklahoma (S)  10.500  07/01/19  275,000  272,938 
Greektown Superholdings, Inc.  13.000  07/01/15  1,713,000  1,916,419 
Jacobs Entertainment, Inc. (Z)  9.750  06/15/14  600,000  609,000 
Little Traverse Bay Bands of Odawa Indians (S)  9.000  08/31/20  319,000  281,518 
MTR Gaming Group, Inc.  12.625  07/15/14  185,000  193,788 
Palace Entertainment Holdings LLC/Palace Entertainment         
Holdings Corp. (S)  8.875  04/15/17  235,000  239,406 
Seminole Indian Tribe of Florida (S)  7.750  10/01/17  325,000  334,750 
Seminole Indian Tribe of Florida (S)(Z)  6.535  10/01/20  650,000  626,529 
Waterford Gaming LLC (S)(Z)  8.625  09/15/14  239,604  108,361 
         
Household Durables 0.05%         
American Standard Americas (S)  10.750  01/15/16  85,000  81,547 
         
Internet & Catalog Retail 0.30%         
Expedia, Inc. (Z)  5.950  08/15/20  530,000  530,059 
         
Media 3.88%         
AMC Entertainment, Inc.  8.750  06/01/19  140,000  148,750 
CBS Corp.  7.875  07/30/30  595,000  725,979 
CCO Holdings LLC/CCO Holdings Capital Corp.  8.125  04/30/20  145,000  159,138 
Cinemark USA, Inc. (S)  7.375  06/15/21  195,000  195,000 
Clear Channel Worldwide Holdings, Inc. (Z)  9.250  12/15/17  410,000  445,875 
DIRECTV Holdings LLC/DIRECTV Financing Company, Inc.  6.350  03/15/40  220,000  239,454 
Grupo Televisa SA  6.625  01/15/40  310,000  340,430 
News America, Inc. (Z)  7.750  01/20/24  1,020,000  1,230,403 
News America, Inc. (Z)  7.600  10/11/15  1,000,000  1,155,434 
News America, Inc.  6.400  12/15/35  150,000  152,820 
News America, Inc.  6.150  03/01/37  165,000  165,456 
News America, Inc. (S)  6.150  02/15/41  275,000  273,952 
Nexstar Broadcasting, Inc. (Z)  7.000  01/15/14  84,000  83,790 
Nexstar Broadcasting, Inc., PIK  7.000  01/15/14  255,998  255,358 
Regal Cinemas Corp.  8.625  07/15/19  115,000  123,625 
Regal Entertainment Group  9.125  08/15/18  100,000  105,500 
Time Warner Cable, Inc. (Z)  6.750  07/01/18  605,000  720,743 

 

 
1 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Consumer Discretionary (continued)         
 
United Business Media, Ltd. (S)  5.750  11/03/20  $275,000  $280,326 
         
Multiline Retail 0.09%         
Sears Holdings Corp. (S)  6.625  10/15/18  175,000  159,688 
         
Specialty Retail 0.42%         
Empire Today LLC/Empire Today Finance Corp. (S)  11.375  02/01/17  165,000  166,238 
Hillman Group, Inc.  10.875  06/01/18  210,000  228,375 
Hillman Group, Inc. (S)  10.875  06/01/18  95,000  103,313 
Limited Brands, Inc.  6.625  04/01/21  230,000  238,050 
         
Textiles, Apparel & Luxury Goods 0.62%         
Burlington Coat Factory Warehouse Corp. (S)(Z)  10.000  02/15/19  590,000  591,475 
Levi Strauss & Company (Z)  7.625  05/15/20  500,000  503,125 
 
Consumer Staples 2.87%        5,032,287 
 
Food & Staples Retailing 0.68%         
CVS Caremark Corp. (6.302% to 6-1-12, then 3 month         
LIBOR + 2.065%) (Z)  6.302  06/01/37  1,230,000  1,199,250 
         
Food Products 1.16%         
Bunge Ltd. Finance Corp. (Z)  8.500  06/15/19  364,000  452,482 
Bunge Ltd. Finance Corp.  4.100  03/15/16  205,000  217,832 
Corp. Pesquera Inca SAC (S)  9.000  02/10/17  340,000  355,725 
Del Monte Foods Company (S)  7.625  02/15/19  235,000  241,756 
JBS Finance II, Ltd. (S)  8.250  01/29/18  360,000  369,900 
Reddy Ice Corp. (Z)  11.250  03/15/15  380,000  390,450 
         
Personal Products 0.29%         
Hypermarcas SA (S)  6.500  04/20/21  150,000  151,200 
Revlon Consumer Products Corp. (Z)  9.750  11/15/15  335,000  364,313 
         
Tobacco 0.74%         
Alliance One International, Inc. (Z)  10.000  07/15/16  1,000,000  960,000 
Lorillard Tobacco Company (Z)  6.875  05/01/20  295,000  329,379 
 
Energy 7.79%        13,657,679 
 
Energy Equipment & Services 0.16%         
Trinidad Drilling, Ltd. (S)  7.875  01/15/19  265,000  278,250 
         
Gas Utilities 0.31%         
DCP Midstream LLC (S)(Z)  9.750  03/15/19  405,000  539,312 
         
Oil, Gas & Consumable Fuels 7.32%         
Alpha Natural Resources, Inc.  6.250  06/01/21  270,000  279,450 
Alpha Natural Resources, Inc.  6.000  06/01/19  125,000  128,906 
Arch Coal, Inc. (S)  7.250  06/15/21  270,000  283,500 
Arch Coal, Inc. (S)  7.000  06/15/19  160,000  167,600 
Chesapeake Energy Corp.  6.125  02/15/21  240,000  250,800 
Energy Transfer Partners LP (Z)  9.700  03/15/19  330,000  427,992 
Enterprise Products Operating LLC (7.000% to 6-1-17, then 3         
month LIBOR + 2.778%) (Z)  7.000  06/01/67  695,000  698,475 
Enterprise Products Operating LLC, Series B (7.034% to         
1-15-18, then 3 month LIBOR + 2.680%) (Z)  7.034  01/15/68  590,000  621,713 
EV Energy Partners LP/EV Energy Finance Corp. (S)  8.000  04/15/19  400,000  413,000 
Kerr-McGee Corp. (Z)  6.950  07/01/24  770,000  915,749 
Kinder Morgan Energy Partners LP (Z)  7.750  03/15/32  195,000  238,540 
Kinder Morgan Finance Company ULC  5.700  01/05/16  615,000  645,750 

 

 
2 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Energy (continued)         
 
Marathon Petroleum Corp. (S)  6.500  03/01/41  $280,000  $300,143 
MarkWest Energy Partners LP/MarkWest Energy Finance         
Corp. (Z)  6.500  08/15/21  495,000  516,038 
Niska Gas Storage US LLC/Niska Gas Storage Canada ULC         
(Z)  8.875  03/15/18  395,000  421,169 
NuStar Logistics LP (Z)  7.650  04/15/18  845,000  1,027,514 
OGX Petroleo e Gas Participacoes SA (S)  8.500  06/01/18  400,000  421,600 
Petro-Canada (Z)  9.250  10/15/21  1,000,000  1,380,228 
Spectra Energy Capital LLC (Z)  6.200  04/15/18  1,000,000  1,155,559 
Thermon Industries, Inc. (Z)  9.500  05/01/17  80,000  86,800 
TransCanada Pipelines, Ltd. (6.350% to 5-15-17, then 3         
month LIBOR + 2.210%) (Z)  6.350  05/15/67  490,000  502,343 
Williams Partners LP/Williams Partners Finance Corp. (Z)  7.250  02/01/17  1,620,000  1,957,248 
 
Financials 32.19%        56,442,210 
 
Capital Markets 3.37%         
Credit Suisse AG (3 month LIBOR + 0.690% to 5-15-17, then         
3 month LIBOR + 1.690%) (Q)(Z)  0.976  05/15/17  715,000  566,058 
Credit Suisse New York (Z)  5.300  08/13/19  415,000  447,649 
Credit Suisse New York (Z)  4.375  08/05/20  555,000  551,612 
Jefferies Group, Inc.  8.500  07/15/19  165,000  198,435 
Jefferies Group, Inc. (Z)  6.875  04/15/21  905,000  994,055 
Macquarie Bank, Ltd. (S)  6.625  04/07/21  260,000  268,533 
Macquarie Group, Ltd. (S)(Z)  6.000  01/14/20  340,000  343,844 
Morgan Stanley (Z)  7.300  05/13/19  485,000  557,855 
Morgan Stanley  5.750  01/25/21  140,000  147,437 
Morgan Stanley (Z)  5.550  04/27/17  500,000  536,939 
Morgan Stanley  5.500  07/28/21  150,000  154,672 
The Goldman Sachs Group, Inc. (Z)  6.150  04/01/18  760,000  837,492 
The Goldman Sachs Group, Inc.  5.250  07/27/21  300,000  306,356 
         
Commercial Banks 5.49%         
Abbey National Treasury Services PLC  4.000  04/27/16  385,000  377,336 
Banco de Credito del Peru (S)  4.750  03/16/16  175,000  177,844 
Barclays Bank PLC (S)  6.050  12/04/17  295,000  308,688 
Barclays Bank PLC (Z)  5.140  10/14/20  1,930,000  1,844,254 
BBVA Bancomer SA (S)(Z)  6.500  03/10/21  485,000  501,975 
BPCE SA (12.500% to 9-30-19, then 3 month LIBOR +         
12.980%) (Q)(S)  12.500  09/30/19  330,000  382,586 
First Tennessee Bank NA (Z)  5.050  01/15/15  405,000  427,249 
ICICI Bank, Ltd. (S)(Z)  5.750  11/16/20  475,000  483,569 
Lloyds TSB Bank PLC (Z)  6.375  01/21/21  440,000  464,186 
National City Bank (P)(Z)  0.622  06/07/17  575,000  539,007 
Regions Financial Corp. (Z)  7.750  11/10/14  1,000,000  1,066,442 
Regions Financial Corp. (P)  0.417  06/26/12  265,000  260,716 
Santander Holdings USA, Inc.  4.625  04/19/16  115,000  118,901 
Santander Issuances SA (6.500% to 11-15-14, then 3 month         
LIBOR + 3.920%) (S)(Z)  6.500  08/11/19  600,000  595,436 
The Chuo Mitsui Trust & Banking Company, Ltd. (5.506% to         
4-15-15, then 3 month LIBOR + 2.490%) (Q)(S)(Z)  5.506  04/15/15  940,000  949,400 
The Royal Bank of Scotland PLC  4.875  03/16/15  330,000  342,669 
Wachovia Bank NA (Z)  6.600  01/15/38  325,000  374,611 

 

 
3 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Financials (continued)         
 
Wachovia Bank NA (Z)  5.850  02/01/37  $390,000  $407,058 
         
Consumer Finance 2.14%         
Capital One Financial Corp. (Z)  6.750  09/15/17  1,000,000  1,179,320 
Capital One Financial Corp. (Z)  6.150  09/01/16  730,000  819,981 
Discover Bank (Z)  7.000  04/15/20  270,000  304,887 
Discover Financial Services (Z)  10.250  07/15/19  585,000  768,713 
Nelnet, Inc. (7.400% to 9-29-11, then 3 month LIBOR +         
3.375%) (Z)  7.400  09/29/36  715,000  674,688 
         
Diversified Financial Services 9.84%         
Astoria Depositor Corp., Series B (S)  8.144  05/01/21  1,000,000  950,000 
Bank of America Corp. (Z)  6.500  08/01/16  305,000  341,994 
Bank of America NA  6.000  10/15/36  390,000  375,847 
Bank of America NA  5.300  03/15/17  150,000  155,063 
Beaver Valley II Funding (Z)  9.000  06/01/17  384,000  418,022 
Bosphorus Financial Services, Ltd. (P)(S)(Z)  2.061  02/15/12  93,750  93,408 
Citigroup, Inc. (Z)  6.125  11/21/17  1,935,000  2,171,008 
Citigroup, Inc. (Z)  5.850  12/11/34  300,000  303,109 
Crown Castle Towers LLC (S)(Z)  4.883  08/15/20  760,000  784,558 
General Electric Capital Corp. (Z)  6.000  08/07/19  335,000  378,870 
General Electric Capital Corp.  5.875  01/14/38  390,000  400,980 
General Electric Capital Corp.  5.300  02/11/21  220,000  234,595 
General Electric Capital Corp.  4.375  09/16/20  365,000  370,946 
GTP Acquisition Partners I LLC (S)  7.628  06/15/16  325,000  333,125 
GTP Acquisition Partners I LLC (S)  4.347  06/15/16  435,000  443,798 
GTP Towers Issuer LLC (S)(Z)  8.112  02/15/15  885,000  939,239 
Harley-Davidson Funding Corp. (S)(Z)  6.800  06/15/18  300,000  348,070 
Harley-Davidson Funding Corp. (S)(Z)  5.750  12/15/14  290,000  319,353 
JPMorgan Chase & Company (Z)  6.000  01/15/18  765,000  867,565 
JPMorgan Chase & Company (Z)  5.600  07/15/41  575,000  579,336 
JPMorgan Chase & Company (Z)  3.700  01/20/15  295,000  308,463 
JPMorgan Chase & Company (7.900% to 4-30-18, then 3         
month LIBOR + 3.470%) (Q)(Z)  7.900  04/30/18  655,000  702,095 
Merrill Lynch & Company, Inc. (Z)  7.750  05/14/38  495,000  540,958 
Merrill Lynch & Company, Inc. (Z)  6.875  04/25/18  1,000,000  1,119,347 
Nationstar Mortgage/Nationstar Capital Corp. (S)(Z)  10.875  04/01/15  485,000  506,825 
Textron Financial Corp. (6.000% to 2-15-17, then 3 month         
LIBOR + 1.735%) (S)(Z)  6.000  02/15/67  750,000  641,250 
The Bear Stearns Companies LLC (Z)  7.250  02/01/18  1,000,000  1,203,410 
Tomkins LLC/Tomkins, Inc. (S)  9.000  10/01/18  135,000  147,488 
USB Realty Corp. (6.091% to 1-15-12, then 3 month LIBOR         
+ 1.147%) (Q)(S)(Z)  6.091  01/15/12  800,000  681,000 
Woodside Finance, Ltd. (S)(Z)  4.500  11/10/14  550,000  594,745 
         
Insurance 5.62%         
Aflac, Inc. (Z)  8.500  05/15/19  385,000  486,355 
Aflac, Inc. (Z)  6.900  12/17/39  230,000  248,176 
AON Corp. (Z)  8.205  01/01/27  345,000  401,181 
AXA SA (6.379% to 12-14-36, then 3 month LIBOR +         
2.256%) (Q)(S)  6.379  12/14/36  175,000  147,000 
Chubb Corp. (6.375% until 4-15-17, then 3 month LIBOR +         
2.250%)  6.375  03/29/67  315,000  325,238 
CNA Financial Corp. (Z)  7.250  11/15/23  540,000  614,279 
CNA Financial Corp. (Z)  6.500  08/15/16  720,000  818,880 
CNO Financial Group, Inc. (S)  9.000  01/15/18  375,000  404,063 

 

 
4 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Financials (continued)         
Glen Meadow Pass-Through Trust (6.505% to 2-15-17, then         
3 month LIBOR +2.125%) (S)  6.505  02/12/67  $835,000  $705,575 
Hartford Financial Services Group, Inc.  6.625  03/30/40  225,000  236,223 
Liberty Mutual Group, Inc. (S)(Z)  7.800  03/15/37  705,000  712,050 
Lincoln National Corp. (Z)  8.750  07/01/19  535,000  694,530 
Lincoln National Corp. (6.050% until 4-20-17, then 3 month         
LIBOR + 2.040%) (Z)  6.050  04/20/67  535,000  508,250 
MetLife, Inc.  10.750  08/01/39  150,000  213,000 
Teachers Insurance & Annuity Association of America (S)(Z)  6.850  12/16/39  605,000  713,940 
The Hanover Insurance Group, Inc.  6.375  06/15/21  150,000  154,153 
Unum Group (Z)  7.125  09/30/16  395,000  460,596 
UnumProvident Finance Company PLC (S)(Z)  6.850  11/15/15  605,000  686,217 
W.R. Berkley Corp. (Z)  5.600  05/15/15  365,000  395,014 
Willis Group Holdings PLC (Z)  5.750  03/15/21  350,000  364,993 
Willis North America, Inc. (Z)  7.000  09/29/19  495,000  560,686 
         
Real Estate Investment Trusts 5.61%         
Brandywine Operating Partnership LP (Z)  7.500  05/15/15  345,000  399,844 
CommonWealth REIT (Z)  6.650  01/15/18  480,000  544,216 
Developers Diversified Realty Corp. (Z)  7.500  04/01/17  625,000  722,122 
Dexus Property Group (S)(Z)  7.125  10/15/14  495,000  559,416 
Duke Realty LP (Z)  8.250  08/15/19  265,000  327,977 
Duke Realty LP (Z)  6.750  03/15/20  590,000  674,490 
Goodman Funding Pty, Ltd. (S)(Z)  6.375  04/15/21  645,000  677,111 
Health Care REIT, Inc. (Z)  6.200  06/01/16  505,000  572,247 
Health Care REIT, Inc. (Z)  6.125  04/15/20  700,000  771,132 
Health Care REIT, Inc.  4.950  01/15/21  400,000  407,611 
Healthcare Realty Trust, Inc. (Z)  6.500  01/17/17  540,000  613,495 
Mack-Cali Realty LP (Z)  7.750  08/15/19  330,000  405,429 
MPT Operating Partnership LP/MPT Finance Corp. (S)  6.875  05/01/21  230,000  225,400 
Post Apartment Homes LP  4.750  10/15/17  185,000  191,508 
Simon Property Group LP (Z)  10.350  04/01/19  345,000  486,395 
Ventas Realty LP/Ventas Capital Corp.  4.750  06/01/21  390,000  396,154 
Vornado Realty LP (Z)  4.250  04/01/15  755,000  793,686 
WEA Finance LLC/WT Finance Australia Pty, Ltd. (S)  6.750  09/02/19  290,000  335,953 
Weyerhaeuser Company (Z)  7.375  03/15/32  690,000  740,930 
         
Real Estate Management & Development 0.12%         
Realogy Corp. (S)  7.875  02/15/19  215,000  211,775 
 
Health Care 2.39%        4,198,443 
 
Health Care Equipment & Supplies 0.30%         
Alere, Inc.  8.625  10/01/18  185,000  190,550 
Alere, Inc. (Z)  7.875  02/01/16  335,000  342,538 
         
Health Care Providers & Services 1.06%         
BioScrip, Inc.  10.250  10/01/15  285,000  297,825 
Community Health Systems, Inc. (Z)  8.875  07/15/15  440,000  454,850 
Gentiva Health Services, Inc.  11.500  09/01/18  70,000  72,450 
HCA, Inc.  7.500  02/15/22  380,000  385,700 
Medco Health Solutions, Inc. (Z)  7.125  03/15/18  545,000  651,939 
         
Pharmaceuticals 1.03%         
Catalent Pharma Solutions, Inc., PIK (Z)  9.500  04/15/15  425,756  434,271 
Endo Pharmaceuticals Holdings, Inc. (S)  7.250  01/15/22  390,000  409,500 
Hospira, Inc. (Z)  6.050  03/30/17  485,000  560,407 
Valeant Pharmaceuticals International, Inc. (S)(Z)  6.875  12/01/18  315,000  305,550 

 

 
5 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Health Care (continued)         
 
Valeant Pharmaceuticals International, Inc. (S)  6.750  10/01/17  $95,000  $92,863 
 
Industrials 6.95%        12,194,563 
 
Aerospace & Defense 0.87%         
Bombardier, Inc. (S)  7.750  03/15/20  240,000  270,000 
Colt Defense LLC/Colt Finance Corp.  8.750  11/15/17  250,000  218,750 
Ducommun, Inc. (S)  9.750  07/15/18  70,000  71,925 
Embraer Overseas, Ltd. (Z)  6.375  01/15/20  380,000  416,100 
Huntington Ingalls Industries, Inc. (S)  7.125  03/15/21  295,000  304,588 
Kratos Defense & Security Solutions, Inc.  10.000  06/01/17  230,000  245,525 
         
Airlines 2.61%         
America West Airlines 2000-1 Pass Through Trust (Z)  8.057  07/02/20  189,240  196,809 
Continental Airlines 1998-1 Class A Pass Through Trust  6.648  09/15/17  196,662  209,209 
Continental Airlines 1999-1 Class A Pass Through Trust (Z)  6.545  02/02/19  211,274  222,113 
Continental Airlines 2000-2 Class B Pass Through Trust (Z)  8.307  04/02/18  158,596  158,802 
Continental Airlines 2007-1 Class A Pass Through Trust (Z)  5.983  04/19/22  535,065  550,474 
Delta Air Lines 2007-1 Class A Pass Through Trust (Z)  6.821  08/10/22  631,842  654,778 
Delta Air Lines 2010-1 Class A Pass Through Trust  6.200  07/02/18  212,235  223,517 
Delta Air Lines 2011-1 Class A Pass Through Trust  5.300  04/15/19  230,000  230,874 
Northwest Airlines 2002-1 Class G-2 Pass Through Trust (Z)  6.264  11/20/21  555,298  557,408 
Northwest Airlines 2007-1 Class A Pass Through Trust (Z)  7.027  11/01/19  415,624  423,937 
United Air Lines 2009-1 Pass Through Trust  10.400  11/01/16  177,279  199,651 
United Air Lines 2009-2A Pass Through Trust (Z)  9.750  01/15/17  404,651  459,278 
United Airlines 2007-1 Class C Pass Through Trust (P)  2.647  07/02/14  544,720  499,781 
         
Building Products 0.74%         
Masco Corp.  7.125  03/15/20  285,000  293,591 
Voto-Votorantim Overseas Trading Operations NV (S)(Z)  6.625  09/25/19  450,000  481,500 
Voto-Votorantim, Ltd. (S)(Z)  6.750  04/05/21  490,000  526,750 
         
Commercial Services & Supplies 0.53%         
Garda World Security Corp. (S)  9.750  03/15/17  100,000  105,500 
International Lease Finance Corp. (S)(Z)  7.125  09/01/18  290,000  308,850 
Steelcase, Inc. (Z)  6.375  02/15/21  480,000  512,103 
         
Construction & Engineering 0.18%         
Tutor Perini Corp.  7.625  11/01/18  335,000  322,438 
         
Electrical Equipment 0.12%         
Coleman Cable, Inc.  9.000  02/15/18  205,000  212,688 
         
Industrial Conglomerates 0.58%         
Odebrecht Finance, Ltd. (Q)(S)  7.500  09/14/15  100,000  102,750 
Odebrecht Finance, Ltd. (S)(Z)  6.000  04/05/23  350,000  355,250 
Textron, Inc. (Z)  5.600  12/01/17  505,000  552,329 
         
Machinery 0.18%         
Pentair, Inc. (Z)  5.000  05/15/21  300,000  310,589 
         
Marine 0.30%         
Navios Maritime Holdings, Inc./Navios Maritime Finance II         
U.S., Inc. (S)  8.125  02/15/19  225,000  208,688 
Navios South American Logistics, Inc./Navios Logistics         
Finance (S)  9.250  04/15/19  315,000  315,788 
         
Road & Rail 0.62%         
The Hertz Corp. (S)(Z)  6.750  04/15/19  625,000  625,000 

 

 
6 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Industrials (continued)         
         
Western Express, Inc. (S)(Z)  12.500  04/15/15  $485,000  $455,900 
         
Trading Companies & Distributors 0.12%         
Aircastle, Ltd.  9.750  08/01/18  190,000  210,425 
         
Transportation Infrastructure 0.10%         
Asciano Finance, Ltd. (S)(Z)  4.625  09/23/20  185,000  180,905 
 
Information Technology 0.81%        1,415,075 
 
IT Services 0.45%         
Brightstar Corp. (S)(Z)  9.500  12/01/16  560,000  599,200 
Equinix, Inc.  8.125  03/01/18  165,000  181,500 
         
Software 0.36%         
Vangent, Inc. (Z)  9.625  02/15/15  625,000  634,375 
 
Materials 6.90%        12,095,335 
 
Chemicals 1.34%         
American Pacific Corp. (Z)  9.000  02/01/15  245,000  241,631 
Braskem America Finance Company (S)  7.125  07/22/41  425,000  428,188 
Braskem Finance, Ltd. (S)  7.000  05/07/20  515,000  566,500 
Fufeng Group, Ltd. (S)  7.625  04/13/16  335,000  315,738 
Incitec Pivot Finance LLC (S)(Z)  6.000  12/10/19  345,000  378,213 
Sterling Chemicals, Inc. (Z)  10.250  04/01/15  400,000  424,000 
         
Construction Materials 0.27%         
Building Materials Corp. of America (S)  6.750  05/01/21  230,000  233,163 
Severstal Columbus LLC  10.250  02/15/18  100,000  110,750 
Vulcan Materials Company  7.500  06/15/21  130,000  130,448 
         
Containers & Packaging 0.72%         
Polymer Group, Inc. (S)  7.750  02/01/19  95,000  98,444 
Pretium Packaging LLC/Pretium Finance, Inc. (S)  11.500  04/01/16  165,000  168,300 
Temple-Inland, Inc. (Z)  6.625  01/15/18  750,000  841,553 
U.S. Corrugated, Inc.  10.000  06/12/13  160,000  158,400 
         
Metals & Mining 3.11%         
Alcoa, Inc.  5.400  04/15/21  255,000  265,172 
Allegheny Technologies, Inc. (Z)  9.375  06/01/19  280,000  363,847 
Allegheny Technologies, Inc.  5.950  01/15/21  140,000  153,809 
ArcelorMittal (Z)  9.850  06/01/19  370,000  481,715 
ArcelorMittal  6.750  03/01/41  280,000  285,854 
Cliffs Natural Resources, Inc. (Z)  6.250  10/01/40  295,000  309,344 
Commercial Metals Company (Z)  7.350  08/15/18  310,000  334,675 
Gerdau Trade, Inc. (S)  5.750  01/30/21  330,000  336,188 
JMC Steel Group (S)  8.250  03/15/18  185,000  191,938 
Metinvest BV (S)(Z)  8.750  02/14/18  435,000  450,791 
Rain CII Carbon LLC/CII Carbon Corp. (S)(Z)  8.000  12/01/18  555,000  577,200 
Suncoke Energy, Inc. (S)  7.625  08/01/19  259,000  265,475 
Teck Resources, Ltd. (Z)  10.750  05/15/19  239,000  304,128 
Teck Resources, Ltd.  6.250  07/15/41  155,000  166,044 
Thompson Creek Metals Company, Inc. (S)  7.375  06/01/18  155,000  153,644 
Vale Overseas, Ltd. (Z)  6.875  11/10/39  320,000  369,565 
Winsway Coking Coal Holding, Ltd. (S)(Z)  8.500  04/08/16  470,000  441,800 
         
Paper & Forest Products 1.46%         
Georgia-Pacific LLC  7.250  06/01/28  165,000  190,897 
Georgia-Pacific LLC (S)(Z)  5.400  11/01/20  800,000  846,581 

 

 
7 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Materials (continued)         
 
International Paper Company (Z)  9.375  05/15/19  $385,000  $509,198 
Mercer International, Inc.  9.500  12/01/17  67,000  71,523 
Verso Paper Holdings LLC/Verso Paper, Inc. (S)  8.750  02/01/19  100,000  92,750 
Westvaco Corp. (Z)  7.950  02/15/31  770,000  837,869 
 
Telecommunication Services 2.40%        4,209,356 
 
Diversified Telecommunication Services 1.89%         
Affinion Group Holdings, Inc. (S)  11.625  11/15/15  235,000  235,588 
Axtel SAB de CV (S)  9.000  09/22/19  160,000  156,000 
BellSouth Telecommunications, Inc. (Z)  6.300  12/15/15  568,815  612,058 
CenturyLink, Inc.  7.600  09/15/39  305,000  307,157 
CenturyLink, Inc.  6.450  06/15/21  305,000  314,670 
Frontier Communications Corp. (Z)  8.500  04/15/20  635,000  696,913 
Qwest Corp. (Z)  8.375  05/01/16  330,000  391,050 
Telecom Italia Capital SA  7.721  06/04/38  260,000  259,754 
Telecom Italia Capital SA  7.200  07/18/36  365,000  345,724 
         
Wireless Telecommunication Services 0.51%         
America Movil SAB de CV (Z)  5.000  03/30/20  440,000  476,329 
Bakrie Telecom Pte, Ltd. (S)(Z)  11.500  05/07/15  405,000  414,113 
 
Utilities 5.66%        9,933,102 
 
Electric Utilities 3.02%         
BVPS II Funding Corp. (Z)  8.890  06/01/17  517,000  593,278 
Commonwealth Edison Company (Z)  5.800  03/15/18  525,000  602,491 
Exelon Corp. (Z)  4.900  06/15/15  985,000  1,074,625 
FPL Energy National Wind LLC (S)(Z)  5.608  03/10/24  254,276  267,478 
ITC Holdings Corp. (S)(Z)  5.500  01/15/20  415,000  462,464 
Oncor Electric Delivery Company LLC (Z)  5.000  09/30/17  820,000  908,156 
PNPP II Funding Corp. (Z)  9.120  05/30/16  273,000  303,101 
PPL Capital Funding, Inc. (6.700% to 3-30-17, then 3 month         
LIBOR + 2.665%) (Z)  6.700  03/30/67  525,000  517,387 
TXU Corp. (Z)  7.460  01/01/15  193,613  188,056 
W3A Funding Corp.  8.090  01/02/17  386,792  386,660 
         
Energy Equipment & Services 0.42%         
MidAmerican Energy Holdings Company (Z)  8.480  09/15/28  550,000  737,782 
         
Independent Power Producers & Energy Traders 1.18%         
Allegheny Energy Supply Company LLC (S)(Z)  5.750  10/15/19  460,000  500,742 
Exelon Generation Company LLC  6.250  10/01/39  360,000  386,085 
Ipalco Enterprises, Inc. (S)  5.000  05/01/18  440,000  437,159 
NRG Energy, Inc. (Z)  8.250  09/01/20  355,000  365,650 
NRG Energy, Inc. (S)  7.625  01/15/18  370,000  376,475 
         
Multi-Utilities 0.60%         
Integrys Energy Group, Inc. (6.110% to 12-1-16, then 3         
month LIBOR + 2.120%) (Z)  6.110  12/01/66  650,000  643,825 
Wisconsin Energy Corp. (6.250% to 5-15-17, then 3 month         
LIBOR + 2.113%) (Z)  6.250  05/15/67  410,000  413,280 
         
Water Utilities 0.44%         
Cia de Saneamento Basico do Estado de Sao Paulo (S)  6.250  12/16/20  305,000  315,675 
Midwest Generation LLC, Series B (Z)  8.560  01/02/16  440,616  452,733 

 

 
8 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Convertible Bonds 0.20% (0.14% of Total Investments)        $354,020 
(Cost $267,530)         
 
Consumer Discretionary 0.20%        354,020 
 
Media 0.20%         
XM Satellite Radio, Inc. (S)  7.000  12/01/14  $248,000  354,020 
 
Municipal Bonds 0.23% (0.16% of Total Investments)        $405,821 
(Cost $347,902)         
 
California 0.16%        283,195 
State of California  7.600  11/01/40  225,000  283,195 
 
Illinois 0.07%        122,626 
State of Illinois  5.100  06/01/33  135,000  122,626 
  
Term Loans (M) 1.28% (0.87% of Total Investments)        $2,236,896 
(Cost $2,369,717)         
 
Consumer Discretionary 1.15%        2,017,790 
 
Automobiles 0.28%         
Chrysler Group LLC  6.000  05/24/17  500,000  486,563 
         
Hotels, Restaurants & Leisure 0.69%         
CCM Merger, Inc.  7.000  03/01/17  192,996  195,167 
East Valley Tourist Development Authority  12.000  08/06/12  542,811  439,677 
Kalispel Tribal Economic Authority  7.500  02/25/17  600,000  586,500 
         
Media 0.18%         
Vertis, Inc.  11.750  12/31/15  342,885  309,883 
 
Financials 0.13%        219,106 
 
Real Estate Investment Trusts 0.13%         
iStar Financial, Inc.  7.000  06/30/14  220,000  219,106 
 
Capital Preferred Securities 2.43% (1.65% of Total Investments)      $4,263,228 
(Cost $4,224,481)         
 
Financials 2.43%        4,263,228 
 
Capital Markets 0.73%         
State Street Capital Trust III (P)(Q)(Z)  5.237  09/19/11  520,000  519,828 
State Street Capital Trust IV (P)(Z)  1.247  06/15/37  935,000  768,113 
         
Commercial Banks 1.37%         
Fifth Third Capital Trust IV (6.500% to 4-15-17 then 3 month         
LIBOR + 1.368%) (Z)  6.500  04/15/37  825,000  802,313 
PNC Financial Services Group, Inc. (Q)  6.750  08/01/21  215,000  213,656 
PNC Preferred Funding Trust III (8.700% to 3-15-13, then 3         
month LIBOR + 5.226%) (Q)(S)(Z)  8.700  03/15/13  835,000  874,394 
Sovereign Capital Trust VI (Z)  7.908  06/13/36  480,000  502,524 
         
Insurance 0.33%         
MetLife Capital Trust X (9.250% to 4-8-38 then 3 month         
LIBOR + 5.540%) (S)  9.250  04/08/38  175,000  217,000 
ZFS Finance USA Trust II (6.450% to 6-15-16 then 3 month         
LIBOR + 2.000%) (S)  6.450  12/15/65  360,000  365,400 

 

 
9 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
U.S. Government & Agency Obligations 40.64%         
(27.64% of Total Investments)        $71,254,883 
(Cost $70,345,638)         
 
U.S. Government 5.47%        9,582,267 
 
U.S. Treasury Bonds         
Bond (Z)  4.750  02/15/41  $1,710,000  1,890,618 
U.S. Treasury Notes         
Note (Z)  3.125  05/15/21  5,935,000  6,100,052 
Note (Z)  2.125  02/29/16  1,095,000  1,141,793 
U.S. Treasury Strips, PO  2.907*  11/15/30  1,020,000  449,804 
 
U.S. Government Agency 35.17%        61,672,616 
 
Federal Home Loan Mortgage Corp.         
30 Yr Pass Thru Ctf  6.500  06/01/37  50,112  55,764 
30 Yr Pass Thru Ctf  6.500  10/01/37  105,062  116,910 
30 Yr Pass Thru Ctf  6.500  11/01/37  213,513  237,592 
30 Yr Pass Thru Ctf  6.500  12/01/37  97,956  109,003 
30 Yr Pass Thru Ctf (Z)  6.500  04/01/39  2,465,088  2,743,086 
30 Yr Pass Thru Ctf (Z)  5.000  03/01/41  6,107,289  6,529,687 
30 Yr Pass Thru Ctf (Z)  4.000  09/01/40  5,875,920  5,975,332 
Federal National Mortgage Association         
15 Yr Pass Thru Ctf (Z)  4.000  06/01/24  3,976,731  4,180,394 
30 Yr Pass Thru Ctf (Z)  6.500  07/01/36  803,938  895,921 
30 Yr Pass Thru Ctf (Z)  6.500  01/01/39  3,917,278  4,361,800 
30 Yr Pass Thru Ctf (Z)  6.500  03/01/39  234,522  260,841 
30 Yr Pass Thru Ctf  6.500  06/01/39  322,154  359,013 
30 Yr Pass Thru Ctf  5.500  02/01/36  1,873,377  2,042,483 
30 Yr Pass Thru Ctf (Z)  5.500  12/01/36  5,530,654  6,012,617 
30 Yr Pass Thru Ctf  5.500  06/01/37  992,920  1,077,275 
30 Yr Pass Thru Ctf (Z)  5.500  06/01/38  1,912,812  2,074,720 
30 Yr Pass Thru Ctf (Z)  5.500  10/01/39  4,328,576  4,696,315 
30 Yr Pass Thru Ctf  5.500  08/01/40  426,608  462,052 
30 Yr Pass Thru Ctf  5.000  02/01/41  3,211,047  3,435,390 
30 Yr Pass Thru Ctf  5.000  04/01/41  992,666  1,070,706 
30 Yr Pass Thru Ctf (Z)  4.500  10/01/40  3,458,472  3,621,878 
30 Yr Pass Thru Ctf (Z)  4.000  08/01/40  6,952,532  7,076,200 
30 Yr Pass Thru Ctf (Z)  4.000  10/01/40  3,482,324  3,543,922 
Government National Mortgage Association         
30 Yr Pass Thru Ctf  5.500  11/15/38  663,482  733,715 
 
Foreign Government Obligations 0.22% (0.15% of Total Investments)      $386,121 
(Cost $368,311)         
 
South Korea 0.22%        386,121 
Korea Development Bank  4.000  09/09/16  370,000  386,121 

 

 
10 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Collateralized Mortgage Obligations 13.43%         
(9.13% of Total Investments)        $23,550,602 
(Cost $25,296,265)         
 
Commercial & Residential 10.65%        18,676,886 
 
American Home Mortgage Assets         
Series 2006-6, Class XP IO  2.321  12/25/46  $8,634,638  537,588 
American Tower Trust         
Series 2007-1A, Class D (S)  5.957  04/15/37  865,000  925,507 
Banc of America Commercial Mortgage, Inc.         
Series 2006-2, Class AM (P)  5.766  05/10/45  595,000  605,805 
Series 2006-4, Class AM  5.675  07/10/46  590,000  587,092 
Bear Stearns Adjustable Rate Mortgage Trust         
Series 2005-1, Class B2 (P)  3.564  03/25/35  780,363  96,073 
Bear Stearns Alt-A Trust         
Series 2004-12 1A1 (P)  0.537  01/25/35  758,936  668,214 
Series 2005-3, Class B2 (P)  2.541  04/25/35  537,461  20,047 
Bear Stearns Commercial Mortgage Securities, Inc.         
Series 2006-PW14, Class D (S)  5.412  12/11/38  655,000  355,407 
Citigroup/Deutsche Bank Commercial Mortgage Trust         
Series 2005-CD1, Class C (P)  5.220  07/15/44  295,000  267,978 
Countrywide Alternative Loan Trust         
Series 2006-OA12, Class X IO  2.656  09/20/46  13,769,383  922,790 
First Horizon Alternative Mortgage Securities         
Series 2004-AA5, Class B1 (P)  2.353  12/25/34  407,697  51,387 
GMAC Mortgage Loan Trust         
Series 2004-AR2, Class 3A (P)  3.266  08/19/34  902,424  818,335 
Greenwich Capital Commercial Funding Corp.         
Series 2006-GG7, Class AM (P)  5.881  07/10/38  595,000  610,809 
GSR Mortgage Loan Trust         
Series 2006-4F, Class 6A1  6.500  05/25/36  2,728,366  2,096,629 
Series 2004-9, Class B1 (P)  3.107  08/25/34  795,319  305,972 
Harborview Mortgage Loan Trust         
Series 2004-11, Class X1 IO  2.169  01/19/35  4,710,517  346,185 
Series 2005-11, Class X IO  2.282  08/19/45  3,099,314  143,633 
Series 2005-2, Class X IO  2.369  05/19/35  13,132,625  724,300 
Series 2005-8, Class 1X IO  2.375  09/19/35  5,262,255  265,904 
Series 2007-3, Class ES IO  0.350  05/19/47  12,676,634  83,665 
Series 2007-4, Class ES IO  0.350  07/19/47  15,917,189  87,226 
Series 2007-6, Class ES IO  0.342  08/19/37  10,685,963  68,818 
IndyMac Index Mortgage Loan Trust         
Series 2004-AR13, Class B1  5.296  01/25/35  313,522  29,241 
Series 2005-AR18, Class 1X IO  2.147  10/25/36  10,663,832  535,004 
Series 2005-AR18, Class 2X IO  1.836  10/25/36  9,981,634  495,488 
Series 2005-AR5, Class B1 (P)  2.627  05/25/35  316,002  4,727 
JPMorgan Chase Commercial Mortgage Securities Corp.         
Series 2006-LDP7, Class AM (P)  5.880  04/15/45  535,000  547,837 
LB-UBS Commercial Mortgage Trust         
Series 2007-C1, Class AM  5.455  02/15/40  850,000  840,132 
MLCC Mortgage Investors, Inc.         
Series 2006-3, Class 2A1 (P)  4.289  10/25/36  731,724  665,761 
Series 2007-3, Class M1 (P)  5.385  09/25/37  290,743  183,148 
Series 2007-3, Class M2 (P)  5.385  09/25/37  107,299  62,569 
Series 2007-3, Class M3 (P)  5.385  09/25/37  72,687  31,635 
Morgan Stanley Capital I         
Series 2008-HQ8, Class AM (P)  5.466  03/12/44  1,020,000  1,048,757 

 

 
11 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Commercial & Residential (continued)         
 
Provident Funding Mortgage Loan Trust         
Series 2005-1, Class B1 (P)  2.670  05/25/35  $390,936  $65,286 
Thornburg Mortgage Securities Trust         
Series 2004-1, Class II2A (P)  1.754  03/25/44  837,693  746,116 
WaMu Mortgage Pass Through Certificates         
Series 2004-AR13, Class X IO  1.535  11/25/34  12,485,791  631,274 
Series 2005-AR1, Class X IO  1.624  01/25/45  18,463,812  870,632 
Series 2005-AR12, Class 1A2 (P)  2.718  10/25/35  254,127  244,145 
Series 2005-AR4, Class B1 (P)  2.580  04/25/35  1,451,983  321,677 
Series 2005-AR8, Class X IO  1.755  07/25/45  15,365,631  764,093 
 
U.S. Government Agency 2.78%        4,873,716 
 
Federal Home Loan Mortgage Corp.         
Series 3747, Class HI IO  4.500  07/15/37  6,655,944  1,043,064 
Series 3794, Class PI IO  4.500  02/15/38  1,145,924  182,527 
Federal National Mortgage Association         
Series 2009-47, Class EI IO  5.000  08/25/19  960,234  111,250 
Series 2010-68, Class CI IO  5.000  11/25/38  1,483,997  257,760 
Series 398, Class C3 IO  4.500  05/25/39  1,528,636  313,154 
Series 401, Class C2 IO  4.500  06/25/39  959,881  190,468 
Series 402, Class 3 IO  4.000  11/25/39  1,165,573  270,728 
Series 402, Class 4 IO  4.000  10/25/39  2,034,637  415,677 
Series 402, Class 7 IO  4.500  11/25/39  1,791,395  395,338 
Series 402, Class 8 IO  4.500  11/25/39  2,130,148  467,702 
Series 407, Class 15 IO  5.000  01/25/40  1,553,101  350,114 
Series 407, Class 16 IO  5.000  01/25/40  402,817  100,986 
Series 407, Class 17 IO  5.000  01/25/40  328,260  82,951 
Series 407, Class 21 IO  5.000  01/25/39  1,434,694  251,896 
Series 407, Class 7 IO  5.000  03/25/41  507,287  109,638 
Series 407, Class 8 IO  5.000  03/25/41  484,367  121,625 
Government National Mortgage Association         
Series 2010-78, Class AI IO  4.500  04/20/39  1,683,959  208,838 
  
Asset Backed Securities 4.43% (3.01% of Total Investments)      $7,768,990 
(Cost $7,944,739)         
 
Asset Backed Securities 4.43%        7,768,990 
 
Bravo Mortgage Asset Trust         
Series 2006-1A, Class A2 (P)(S)  0.427  07/25/36  631,252  526,927 
Carrington Mortgage Loan Trust         
Series 2005-OPT2, Class M2 (P)  0.637  05/25/35  435,000  394,142 
Citigroup Mortgage Loan Trust         
Series 2006-WFH3, Class A3 (P)  0.337  10/25/36  746,516  693,547 
ContiMortgage Home Equity Loan Trust         
Series 1995-2, Class A-5  8.100  08/15/25  37,324  36,974 
FUEL Trust (S)         
Series 2011-1  4.207  04/15/16  150,000  152,598 
Leaf Capital Funding SPE A LLC         
Series 2010-A, Class B (P)(S)  5.187  12/15/20  165,000  165,000 
Series 2010-A, Class C (P)(S)  7.187  12/15/20  333,088  333,088 
Series 2010-A, Class D (P)(S)  10.187  12/15/20  240,000  240,000 
Series 2010-A, Class E1 (P)(S)  14.687  12/15/20  292,526  292,526 
Leaf II Receivables Funding LLC         
Series 2011-1, Class A (S)  1.700  12/20/18  444,807  434,933 

 

 
12 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

         
    Maturity  Par value   
  Rate (%)  date    Value 
 
Asset Backed Securities (continued)         
 
Mastr Asset Backed Securities Trust         
Series 2007-HE2, Class A2 (P)  0.887  08/25/37  $633,529  $563,219 
Merrill Lynch Mortgage Investors, Inc.         
Series 2005-HE2, Class A2C (P)  0.557  09/25/36  670,000  586,778 
Series 2005-WMC1, Class M1 (P)  0.687  09/25/35  348,750  322,010 
New Century Home Equity Loan Trust         
Series 2005-3, Class M1 (P)  0.667  07/25/35  305,000  264,006 
Novastar Home Equity Loan         
Series 2004-4, Class M3 (P)  1.267  03/25/35  645,000  586,476 
Park Place Securities, Inc.         
Series 2004-WHQ2, Class M2 (P)  0.817  02/25/35  915,000  740,116 
Residential Asset Securities Corp.         
Series 2005-KS4, Class M1 (P)  0.597  05/25/35  885,403  811,268 
Sonic Capital LLC         
Series 2011-1A, Class A2 (S)  5.438  05/20/41  616,900  625,382 
         
      Shares  Value 
 
Common Stocks 2.55% (1.73% of Total Investments)        $4,470,883 
(Cost $4,532,738)         
 
Consumer Discretionary 0.03%        61,440 
 
Hotels, Restaurants & Leisure 0.03%         
Greektown Superholdings, Inc. (I)      768  61,440 
 
Consumer Staples 0.41%        711,700 
 
Tobacco 0.41%         
Philip Morris International, Inc. (Z)      10,000  711,700 
 
Energy 0.34%        588,480 
 
Oil, Gas & Consumable Fuels 0.34%         
Royal Dutch Shell PLC, ADR (Z)      8,000  588,480 
 
Health Care 0.68%        1,186,136 
 
Pharmaceuticals 0.68%         
Eli Lilly & Company      17,000  651,100 
Johnson & Johnson (Z)      8,258  535,036 
 
Information Technology 0.33%        580,580 
 
Semiconductors & Semiconductor Equipment 0.33%         
Intel Corp. (Z)      26,000  580,580 
 
Materials 0.43%        762,227 
 
Containers & Packaging 0.43%         
Rock-Tenn Company, Class A (Z)      12,402  762,227 
 
Telecommunication Services 0.33%        580,320 
 
Diversified Telecommunication Services 0.33%         
Telefonica SA, ADR      26,000  580,320 

 

 
13 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

     
  Shares  Value 
 
Preferred Securities 3.32% (2.26% of Total Investments)    $5,831,016 
(Cost $5,960,344)     
     
Consumer Discretionary 0.68%    1,199,280 
 
Hotels, Restaurants & Leisure 0.68%     
Greektown Superholdings, Inc., Series A (I)  14,991  1,199,280 
     
Consumer Staples 0.65%    1,146,093 
 
Food & Staples Retailing 0.65%     
Ocean Spray Cranberries, Inc., Series A, 6.250% (S)(Z)  12,500  1,146,093 
     
Energy 0.18%    305,963 
 
Oil, Gas & Consumable Fuels 0.18%     
Apache Corp., Series D, 6.000%  4,697  305,963 
     
Financials 1.81%    3,179,680 
 
Consumer Finance 0.16%     
Ally Financial, Inc., 7.300%  11,815  276,471 
     
Diversified Financial Services 0.30%     
Citigroup Capital XIII (7.875% to 10-30-15, then 3 month LIBOR +     
6.370%)  3,900  105,573 
GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR +     
5.785%)  16,350  418,886 
     
Real Estate Investment Trusts 1.35%     
Apartment Investment & Management Company, Series T, 8.000%     
(Z)  55,000  1,384,350 
Public Storage, Inc., Depositary Shares, Series W, 6.500% (Z)  40,000  994,400 
 
Total investments (Cost $250,398,830)† 147.04%    $257,840,696 
 
Other assets and liabilities, net (47.04%)    ($82,491,144) 
 
Total net assets 100.00%    $175,349,552 
 


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

PO Principal-Only Security - Principal Tranche of Stripped Mortgage Pool

LIBOR London Interbank Offered Rate

PIK Payment-in-kind

(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. Date shown is next call 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 $49,072,042 or 27.99% of the Fund's net assets as of 7-31-11.

 
14 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

(Z) All or a portion of this security is pledged as collateral pursuant to the Committed Facility Agreement. Total collateral value at 7-31-11 was $193,289,962.

* Yield represents the annualized yield at the date of purchase.

† At 7-31-11, the aggregate cost of investment securities for federal income tax purposes was $250,924,759. Net unrealized appreciation aggregated $6,915,937, of which $14,812,447 related to appreciated investment securities and $7,896,510 related to depreciated investment securities.

The Fund had the following country concentration as a percentage of investments on 07-31-11.

       
United States  90%     
United Kingdom  1%     
Brazil  1%     
Canada  1%     
Cayman Islands  1%     
Netherland  1%     
Australia  1%     
Luxembourg  1%     
Switzerland  1%     
South Korea  1%     
Other Countries  1%     

 

 
15 

 


John Hancock Income Securities Trust
As of 7-31-11 (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 July 31, 2011, by major security category or type:

         
      Level 2  Level 3 
  Total Market    Significant  Significant 
  Value at  Level 1 Quoted  Observable  Unobservable 
  07-31-11  Price  Inputs  Inputs 
Corporate Bonds  $137,318,236  —  $136,436,832  $881,404 
Convertible Bonds  354,020  —  354,020  — 
Municipal Bonds  405,821  —  405,821  — 
Term Loans  2,236,896  —  2,236,896  — 
Capital Preferred Securities  4,263,228  —  4,263,228  — 
U.S. Government & Agency         
Obligations  71,254,883  —  71,254,883  — 
Foreign Government         
Obligations  386,121  —  386,121  — 
Collateralized Mortgage         
Obligations  23,550,602  —  23,161,375  389,227 
Asset Backed Securities  7,768,990  —  6,738,376  1,030,614 
Common Stocks  4,470,883  $4,409,443  61,440  — 
Preferred Securities  5,831,016  3,485,643  2,345,373  — 
Total Investments in Securities  $257,840,696  $7,895,086  $247,644,365  $2,301,245 
Other Financial Instruments:         
Futures  ($112,092)  ($112,092)  —  — 

 

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the period ended July 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.

 
16 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

             
    Collateralized         
  Asset-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 
Realized gain (loss)  -  (320,128)  406  -  -  (319,722) 
Change in unrealized appreciation             
(depreciation)  -  333,754  (32,628)  -  -  301,126 
Purchases  $1,030,614  300,333  613,263  -  -  1,944,210 
Sales  -  (21,909)  (17,802)  -  -  (39,711) 
Transfers Into Level 3  -  -  -  -  -  - 
Transfers out of Level 3    (1,172,535)  -  (84,924)  (1,657,686)  (2,915,145) 
Balance as of 7-31-11  $1,030,614  $389,227  $881,404  -  -  $2,301,245 
Change in unrealized at period end*  -  $13,626  ($32,628)  -  -  ($19,002) 

 

*Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end.

In order to value the securities, the Fund uses the following valuation techniques. Equity securities, including exchange-traded funds, 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. 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. 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 periods 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.

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 recover 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

 
17 

 


John Hancock Income Securities Trust
As of 7-31-11 (Unaudited)

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. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.

During the period ended July 31, 2011, the Fund used futures contracts to manage the duration of the portfolio. The following table summarizes the contracts held at July 31, 2011. During the period ended July 31, 2011, the Fund held futures contracts with absolute notional values ranging from $7.2 million to $12.5 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  Sept 2011  $1,281,250  $41,378 
U.S. Treasury Ultra Long Bond           
Futures  11  Long  Sept 2011  1,451,313  36,990 
U.S. Treasury 10-Year Note           
Futures  52  Short  Sept 2011  (6,535,750)  (108,751) 
U.S. Treasury 5-Year Note           
Futures  27  Short  Sept 2011  (3,279,023)  (81,709) 
Total          ($112,092) 

 

Fair value of derivative instruments by risk category

The table below summarizes the fair value of derivatives held by the Fund at July 31, 2011 by risk category:

       
    ASSET  LIABILITY 
    DERIVATIVES FAIR  DERIVATIVES FAIR 
RISK  FINANCIAL INSTRUMENTS LOCATION  VALUE  VALUE 
Interest rate contracts  Futures  $78,368  ($190,460) 

 

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

 
18 

 




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: September 20, 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: September 20, 2011

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

Date: September 20, 2011