| 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, 2013 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Corporate Bonds 74.8% (50.9% of Total Investments) | $139,310,433 | |||
|
| ||||
| (Cost $127,584,755) | ||||
| Consumer Discretionary 9.8% | 18,253,593 | |||
|
| ||||
| Auto Components 0.2% | ||||
| American Axle & Manufacturing, Inc. | 6.625 | 10/15/22 | $55,000 | 57,200 |
| Exide Technologies | 8.625 | 02/01/18 | 285,000 | 245,813 |
| Automobiles 2.2% | ||||
| Ford Motor Company | 4.750 | 01/15/43 | 670,000 | 629,279 |
| Ford Motor Company | 6.625 | 10/01/28 | 100,000 | 115,594 |
| Ford Motor Credit Company LLC | 5.000 | 05/15/18 | 1,070,000 | 1,173,074 |
| Ford Motor Credit Company LLC | 5.875 | 08/02/21 | 180,000 | 204,610 |
| Ford Motor Credit Company LLC (Z) | 8.000 | 12/15/16 | 330,000 | 395,395 |
| Hyundai Capital Services, Inc. (S) | 4.375 | 07/27/16 | 310,000 | 332,950 |
| Hyundai Capital Services, Inc. (S)(Z) | 6.000 | 05/05/15 | 430,000 | 471,255 |
| Kia Motors Corp. (S)(Z) | 3.625 | 06/14/16 | 315,000 | 333,605 |
| Nissan Motor Acceptance Corp. (S) | 1.950 | 09/12/17 | 490,000 | 495,116 |
| Hotels, Restaurants & Leisure 2.9% | ||||
| CCM Merger, Inc. (S) | 9.125 | 05/01/19 | 380,000 | 380,950 |
| Downstream Development Authority of the Quapaw Tribe of | ||||
| Oklahoma (S) | 10.500 | 07/01/19 | 275,000 | 304,563 |
| Greektown Superholdings, Inc. (Z) | 13.000 | 07/01/15 | 1,713,000 | 1,839,334 |
| Landry's, Inc. (S) | 9.375 | 05/01/20 | 250,000 | 270,000 |
| Little Traverse Bay Bands of Odawa Indians (S) | 9.000 | 08/31/20 | 319,000 | 306,240 |
| Marina District Finance Company, Inc. (Z) | 9.500 | 10/15/15 | 320,000 | 325,600 |
| MGM Resorts International (S) | 6.750 | 10/01/20 | 275,000 | 288,750 |
| MGM Resorts International | 8.625 | 02/01/19 | 340,000 | 387,600 |
| Rivers Pittsburgh Borrower LP (S) | 9.500 | 06/15/19 | 155,000 | 167,400 |
| Seminole Indian Tribe of Florida (S) | 6.535 | 10/01/20 | 650,000 | 708,978 |
| Seminole Indian Tribe of Florida (S) | 7.750 | 10/01/17 | 325,000 | 351,813 |
| Waterford Gaming LLC (S) | 8.625 | 09/15/14 | 184,062 | 103,823 |
| Household Durables 0.3% | ||||
| American Standard Americas (S) | 10.750 | 01/15/16 | 165,000 | 166,238 |
| Corporacion GEO SAB de CV (S) | 8.875 | 03/27/22 | 410,000 | 419,635 |
| Internet & Catalog Retail 0.5% | ||||
| Amazon.com, Inc. | 2.500 | 11/29/22 | 325,000 | 311,988 |
| Expedia, Inc. | 5.950 | 08/15/20 | 530,000 | 584,184 |
| QVC, Inc. (S) | 5.125 | 07/02/22 | 90,000 | 94,533 |
| Media 2.4% | ||||
| CBS Corp. | 7.875 | 07/30/30 | 595,000 | 802,999 |
| News America, Inc. (Z) | 6.150 | 03/01/37 | 165,000 | 195,791 |
| News America, Inc. (Z) | 6.400 | 12/15/35 | 150,000 | 183,083 |
| News America, Inc. (Z) | 7.600 | 10/11/15 | 1,000,000 | 1,167,373 |
| News America, Inc. (Z) | 7.750 | 01/20/24 | 1,020,000 | 1,303,968 |
| Time Warner Cable, Inc. | 6.750 | 07/01/18 | 605,000 | 749,395 |
| Multiline Retail 0.3% | ||||
| Macy's Retail Holdings, Inc. (Z) | 7.875 | 08/15/36 | 444,000 | 484,494 |
| Specialty Retail 0.6% | ||||
| Hillman Group, Inc. | 10.875 | 06/01/18 | 305,000 | 332,069 |
| Limited Brands, Inc. | 6.625 | 04/01/21 | 475,000 | 540,313 |
| Petco Holdings Inc., PIK (S) | 8.500 | 10/15/17 | 120,000 | 123,600 |
| Toys R Us, Inc. | 10.375 | 08/15/17 | 180,000 | 181,800 |
| 1 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Consumer Discretionary (continued) | ||||
|
| ||||
| Textiles, Apparel & Luxury Goods 0.4% | ||||
| Burlington Coat Factory Warehouse Corp. (Z) | 10.000 | 02/15/19 | $665,000 | $723,188 |
| Consumer Staples 2.9% | 5,294,037 | |||
|
| ||||
| Food & Staples Retailing 0.9% | ||||
| Rite Aid Corp. | 9.250 | 03/15/20 | 720,000 | 801,000 |
| Safeway, Inc. (Z) | 5.000 | 08/15/19 | 575,000 | 616,923 |
| Safeway, Inc. | 7.250 | 02/01/31 | 225,000 | 238,796 |
| Food Products 0.9% | ||||
| Bunge, Ltd. Finance Corp. (Z) | 8.500 | 06/15/19 | 389,000 | 502,865 |
| ConAgra Foods, Inc. | 3.200 | 01/25/23 | 325,000 | 325,464 |
| Corporacion Pesquera Inca SAC (S)(Z) | 9.000 | 02/10/17 | 340,000 | 358,700 |
| Simmons Foods, Inc. (S) | 10.500 | 11/01/17 | 475,000 | 458,375 |
| Household Products 0.5% | ||||
| Reynolds Group Issuer, Inc. | 9.000 | 04/15/19 | 420,000 | 443,100 |
| Reynolds Group Issuer, Inc. (Z) | 9.875 | 08/15/19 | 365,000 | 398,763 |
| YCC Holdings LLC, PIK | 10.250 | 02/15/16 | 85,000 | 87,551 |
| Tobacco 0.6% | ||||
| Alliance One International, Inc. | 10.000 | 07/15/16 | 1,000,000 | 1,062,500 |
| Energy 7.6% | 14,189,500 | |||
|
| ||||
| Energy Equipment & Services 1.0% | ||||
| Astoria Depositor Corp., Series B (S) | 8.144 | 05/01/21 | 1,000,000 | 1,000,000 |
| Offshore Group Investments, Ltd. | 11.500 | 08/01/15 | 187,000 | 202,895 |
| Rowan Companies, Inc. | 4.875 | 06/01/22 | 330,000 | 357,452 |
| Trinidad Drilling, Ltd. (S)(Z) | 7.875 | 01/15/19 | 265,000 | 282,225 |
| Weatherford International, Inc. | 6.800 | 06/15/37 | 130,000 | 141,803 |
| Gas Utilities 0.3% | ||||
| DCP Midstream LLC (S)(Z) | 9.750 | 03/15/19 | 405,000 | 530,195 |
| Oil, Gas & Consumable Fuels 6.3% | ||||
| Afren PLC (S)(Z) | 10.250 | 04/08/19 | 240,000 | 283,200 |
| Afren PLC (S) | 11.500 | 02/01/16 | 200,000 | 233,000 |
| Arch Coal, Inc. | 7.000 | 06/15/19 | 165,000 | 148,913 |
| Arch Coal, Inc. | 7.250 | 06/15/21 | 365,000 | 326,675 |
| BreitBurn Energy Partners LP (S) | 7.875 | 04/15/22 | 215,000 | 227,363 |
| Energy Transfer Partners LP (Z) | 5.200 | 02/01/22 | 135,000 | 150,724 |
| Energy Transfer Partners LP (Z) | 9.700 | 03/15/19 | 425,000 | 574,086 |
| Enterprise Products Operating LLC (7.000% to 6-1-17, then 3 | ||||
| month LIBOR + 2.777%) (Z) | 7.000 | 06/01/67 | 695,000 | 747,125 |
| EP Energy LLC | 7.750 | 09/01/22 | 195,000 | 209,625 |
| EV Energy Partners LP | 8.000 | 04/15/19 | 400,000 | 427,000 |
| Halcon Resources Corp. (S) | 8.875 | 05/15/21 | 140,000 | 149,450 |
| Kerr-McGee Corp. | 6.950 | 07/01/24 | 600,000 | 737,058 |
| Kinder Morgan Energy Partners LP | 7.750 | 03/15/32 | 195,000 | 255,608 |
| Newfield Exploration Company (Z) | 5.750 | 01/30/22 | 260,000 | 286,000 |
| NuStar Logistics LP | 8.150 | 04/15/18 | 381,000 | 435,434 |
| Petro-Canada (Z) | 9.250 | 10/15/21 | 1,000,000 | 1,430,248 |
| Petrohawk Energy Corp. (Z) | 6.250 | 06/01/19 | 595,000 | 677,694 |
| Petroleos de Venezuela SA | 5.375 | 04/12/27 | 450,000 | 324,000 |
| Petroleos Mexicanos | 4.875 | 01/24/22 | 275,000 | 302,844 |
| Spectra Energy Capital LLC (Z) | 6.200 | 04/15/18 | 1,000,000 | 1,214,408 |
| 2 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Energy (continued) | ||||
|
| ||||
| TransCanada Pipelines, Ltd. (6.350% to 5-15-17, then 3 | ||||
| month LIBOR + 2.210%) (Z) | 6.350 | 05/15/67 | $710,000 | $756,854 |
| W&T Offshore, Inc. (S) | 8.500 | 06/15/19 | 100,000 | 107,000 |
| Williams Partners LP | 5.250 | 03/15/20 | 1,460,000 | 1,670,621 |
| Financials 28.7% | 53,381,758 | |||
|
| ||||
| Capital Markets 3.6% | ||||
| Jefferies Group, Inc. | 5.125 | 01/20/23 | 120,000 | 123,105 |
| Jefferies Group, Inc. | 6.875 | 04/15/21 | 1,005,000 | 1,145,700 |
| Jefferies Group, Inc. (Z) | 8.500 | 07/15/19 | 165,000 | 205,090 |
| Macquarie Bank, Ltd. (S) | 6.625 | 04/07/21 | 260,000 | 288,458 |
| Macquarie Group, Ltd. (S) | 6.000 | 01/14/20 | 340,000 | 369,833 |
| Morgan Stanley (Z) | 5.550 | 04/27/17 | 1,300,000 | 1,449,182 |
| Morgan Stanley (Z) | 5.750 | 01/25/21 | 290,000 | 329,581 |
| Morgan Stanley (Z) | 6.375 | 07/24/42 | 405,000 | 481,189 |
| Morgan Stanley (Z) | 7.300 | 05/13/19 | 485,000 | 593,731 |
| The Goldman Sachs Group, Inc. (Z) | 5.250 | 07/27/21 | 450,000 | 508,285 |
| The Goldman Sachs Group, Inc. (Z) | 5.750 | 01/24/22 | 275,000 | 320,595 |
| The Goldman Sachs Group, Inc. (Z) | 6.150 | 04/01/18 | 760,000 | 892,929 |
| Commercial Banks 5.4% | ||||
| Abbey National Treasury Services PLC | 4.000 | 04/27/16 | 630,000 | 670,116 |
| Banco de Credito del Peru (S)(Z) | 4.750 | 03/16/16 | 175,000 | 185,938 |
| Barclays Bank PLC (S) | 6.050 | 12/04/17 | 2,225,000 | 2,484,346 |
| Barclays Bank PLC (S)(Z) | 10.179 | 06/12/21 | 260,000 | 352,149 |
| BPCE SA (12.500% to 9-30-19, then 3 month LIBOR + | ||||
| 12.980%) (Q)(S) | 12.500 | 09/30/19 | 330,000 | 403,666 |
| First Horizon National Corp. | 5.375 | 12/15/15 | 355,000 | 388,272 |
| ICICI Bank, Ltd. (S)(Z) | 5.750 | 11/16/20 | 475,000 | 515,753 |
| Nordea Bank AB (S)(Z) | 3.125 | 03/20/17 | 680,000 | 719,264 |
| Regions Financial Corp. (Z) | 7.750 | 11/10/14 | 620,000 | 685,875 |
| Royal Bank of Scotland Group PLC | 2.550 | 09/18/15 | 335,000 | 345,414 |
| Santander Holdings USA, Inc. | 4.625 | 04/19/16 | 115,000 | 122,303 |
| Sberbank of Russia (S) | 6.125 | 02/07/22 | 200,000 | 228,258 |
| Svenska Handelsbanken AB (Z) | 2.875 | 04/04/17 | 530,000 | 559,281 |
| Swedbank AB (S) | 2.125 | 09/29/17 | 460,000 | 468,060 |
| Synovus Financial Corp. | 7.875 | 02/15/19 | 200,000 | 227,500 |
| VTB Bank OJSC (9.500% to 12-6-22, then 10 Year U.S. | ||||
| Treasury + 8.067%) (Q)(S) | 9.500 | 12/06/22 | 235,000 | 253,213 |
| Wachovia Bank NA (Z) | 5.850 | 02/01/37 | 390,000 | 474,595 |
| Wachovia Corp. (Z) | 5.750 | 06/15/17 | 405,000 | 475,500 |
| Wells Fargo & Company, Series K (7.980% to 03/15/2018, | ||||
| then 3 month LIBOR + 3.770%) (Q) | 7.980 | 03/15/18 | 425,000 | 488,750 |
| Consumer Finance 2.0% | ||||
| Capital One Financial Corp. (Z) | 6.150 | 09/01/16 | 730,000 | 840,637 |
| Capital One Financial Corp. (Z) | 6.750 | 09/15/17 | 1,000,000 | 1,211,108 |
| Discover Bank | 7.000 | 04/15/20 | 270,000 | 331,883 |
| Discover Financial Services (Z) | 5.200 | 04/27/22 | 585,000 | 662,669 |
| Nelnet, Inc. (P) | 3.686 | 09/29/36 | 715,000 | 555,913 |
| Diversified Financial Services 5.3% | ||||
| Bank of America Corp. | 3.300 | 01/11/23 | 260,000 | 256,459 |
| Bank of America Corp. (Z) | 6.500 | 08/01/16 | 305,000 | 352,659 |
| Bank of America NA (Z) | 5.300 | 03/15/17 | 150,000 | 167,484 |
| Bank of America NA | 6.000 | 10/15/36 | 390,000 | 472,096 |
| 3 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Financials (continued) | ||||
|
| ||||
| Citigroup, Inc. | 5.850 | 12/11/34 | $107,000 | $124,654 |
| General Electric Capital Corp. (Z) | 4.375 | 09/16/20 | 365,000 | 403,294 |
| General Electric Capital Corp. (Z) | 5.875 | 01/14/38 | 160,000 | 187,177 |
| General Electric Capital Corp. (Z) | 6.000 | 08/07/19 | 335,000 | 405,196 |
| General Electric Capital Corp. (7.125% until 6-15-22, then 3 | ||||
| month LIBOR + 5.296%) (Q)(Z) | 7.125 | 06/15/22 | 600,000 | 688,050 |
| International Lease Finance Corp. (S) | 7.125 | 09/01/18 | 290,000 | 339,300 |
| iPayment, Inc. | 10.250 | 05/15/18 | 295,000 | 266,975 |
| JPMorgan Chase & Company | 6.000 | 01/15/18 | 775,000 | 920,603 |
| JPMorgan Chase & Company (7.900% to 4-30-18, then 3 | ||||
| month LIBOR + 3.470%) (Q) | 7.900 | 04/30/18 | 655,000 | 753,512 |
| Legend Acquisition Sub, Inc. (S) | 10.750 | 08/15/20 | 285,000 | 250,800 |
| Merrill Lynch & Company, Inc. (Z) | 6.875 | 04/25/18 | 1,000,000 | 1,204,680 |
| Merrill Lynch & Company, Inc. | 7.750 | 05/14/38 | 310,000 | 415,064 |
| SPL Logistics Escrow LLC (S) | 8.875 | 08/01/20 | 215,000 | 230,050 |
| The Bear Stearns Companies LLC | 7.250 | 02/01/18 | 1,000,000 | 1,242,127 |
| UBS AG | 7.625 | 08/17/22 | 445,000 | 489,007 |
| USB Realty Corp. (P)(Q)(S)(Z) | 1.451 | 01/15/17 | 800,000 | 696,000 |
| Insurance 6.2% | ||||
| Aflac, Inc. | 8.500 | 05/15/19 | 385,000 | 521,862 |
| American International Group, Inc. (Z) | 3.800 | 03/22/17 | 235,000 | 253,323 |
| American International Group, Inc. (Z) | 8.250 | 08/15/18 | 230,000 | 298,557 |
| Aon PLC (S) | 4.250 | 12/12/42 | 345,000 | 327,633 |
| AXA SA (Z) | 8.600 | 12/15/30 | 175,000 | 224,657 |
| CNA Financial Corp. | 5.875 | 08/15/20 | 720,000 | 835,759 |
| CNA Financial Corp. (Z) | 7.250 | 11/15/23 | 540,000 | 671,806 |
| 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 | 770,288 |
| Hartford Financial Services Group, Inc. | 5.500 | 03/30/20 | 190,000 | 217,302 |
| Hartford Financial Services Group, Inc. (Z) | 6.000 | 01/15/19 | 193,000 | 225,898 |
| Liberty Mutual Group, Inc. (S) | 5.000 | 06/01/21 | 405,000 | 439,888 |
| Liberty Mutual Group, Inc. (S) | 6.500 | 05/01/42 | 230,000 | 257,433 |
| Liberty Mutual Group, Inc. (S) | 7.800 | 03/15/37 | 705,000 | 800,175 |
| Lincoln National Corp. (Z) | 8.750 | 07/01/19 | 535,000 | 714,479 |
| Lincoln National Corp. (6.050% until 4-20-17, then 3 month | ||||
| LIBOR + 2.040%) | 6.050 | 04/20/67 | 395,000 | 395,988 |
| MetLife, Inc. | 6.400 | 12/15/36 | 305,000 | 330,356 |
| Nippon Life Insurance Company (S) | 5.000 | 10/18/42 | 310,000 | 316,215 |
| Pacific LifeCorp. (S) | 6.000 | 02/10/20 | 180,000 | 205,572 |
| Prudential Financial, Inc. (5.875% to 9-15-22, then 3 month | ||||
| LIBOR + 4.175%) (Z) | 5.875 | 09/15/42 | 445,000 | 466,694 |
| Teachers Insurance & Annuity Association of America (S)(Z) | 6.850 | 12/16/39 | 475,000 | 635,223 |
| The Chubb Corp. (6.375% until 4-15-17, then 3 month LIBOR | ||||
| + 2.250%) (Z) | 6.375 | 03/29/67 | 585,000 | 636,188 |
| The Hanover Insurance Group, Inc. (Z) | 6.375 | 06/15/21 | 150,000 | 169,598 |
| Unum Group (Z) | 7.125 | 09/30/16 | 395,000 | 461,527 |
| UnumProvident Finance Company PLC (S)(Z) | 6.850 | 11/15/15 | 605,000 | 681,179 |
| White Mountains Re Group, Ltd. (7.506% to 6-30-17, then 3 | ||||
| month LIBOR + 3.200%) (Q)(S) | 7.506 | 06/30/17 | 415,000 | 439,987 |
| WR Berkley Corp. | 5.375 | 09/15/20 | 265,000 | 298,258 |
| Real Estate Investment Trusts 5.2% | ||||
| Boston Properties LP (Z) | 3.700 | 11/15/18 | 195,000 | 212,149 |
| Brandywine Operating Partnership LP (Z) | 7.500 | 05/15/15 | 345,000 | 389,442 |
| CubeSmart LP | 4.800 | 07/15/22 | 280,000 | 305,353 |
| 4 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Financials (continued) | ||||
|
| ||||
| DDR Corp. | 4.625 | 07/15/22 | $85,000 | $91,542 |
| DDR Corp. (Z) | 7.500 | 04/01/17 | 880,000 | 1,051,410 |
| DDR Corp. | 7.875 | 09/01/20 | 110,000 | 139,808 |
| Goodman Funding Pty, Ltd. (S) | 6.375 | 04/15/21 | 645,000 | 731,179 |
| Health Care REIT, Inc. | 4.950 | 01/15/21 | 190,000 | 209,195 |
| Health Care REIT, Inc. | 6.125 | 04/15/20 | 700,000 | 816,757 |
| Health Care REIT, Inc. (Z) | 6.200 | 06/01/16 | 505,000 | 577,137 |
| Healthcare Realty Trust, Inc. (Z) | 6.500 | 01/17/17 | 540,000 | 616,144 |
| Highwoods Realty LP | 5.850 | 03/15/17 | 650,000 | 731,005 |
| MPT Operating Partnership LP | 6.375 | 02/15/22 | 320,000 | 343,200 |
| ProLogis International Funding II (S) | 4.875 | 02/15/20 | 180,000 | 179,173 |
| ProLogis LP (Z) | 4.500 | 08/15/17 | 55,000 | 60,271 |
| ProLogis LP (Z) | 6.250 | 03/15/17 | 475,000 | 550,999 |
| Ventas Realty LP | 4.000 | 04/30/19 | 330,000 | 354,301 |
| Ventas Realty LP | 4.750 | 06/01/21 | 670,000 | 735,213 |
| Vornado Realty LP | 4.250 | 04/01/15 | 405,000 | 428,459 |
| WEA Finance LLC (S)(Z) | 6.750 | 09/02/19 | 290,000 | 357,739 |
| Weyerhaeuser Company | 7.375 | 03/15/32 | 690,000 | 840,839 |
| Real Estate Management & Development 0.3% | ||||
| General Shopping Investments, Ltd. (12.000% to 3-20-17, | ||||
| then 5 Year USGG + 11.052%) (Q)(S) | 12.000 | 03/20/17 | 260,000 | 234,000 |
| Jones Lang Lasalle, Inc. | 4.400 | 11/15/22 | 125,000 | 126,620 |
| Mattamy Group Corp. (S) | 6.500 | 11/15/20 | 230,000 | 231,725 |
| Thrifts & Mortgage Finance 0.7% | ||||
| Nationstar Mortgage LLC (S) | 7.875 | 10/01/20 | 310,000 | 337,900 |
| Nationstar Mortgage LLC (S) | 9.625 | 05/01/19 | 295,000 | 335,925 |
| Nationstar Mortgage LLC (Z) | 10.875 | 04/01/15 | 540,000 | 575,100 |
| Health Care 1.8% | 3,425,103 | |||
|
| ||||
| Health Care Equipment & Supplies 0.1% | ||||
| Alere, Inc. | 8.625 | 10/01/18 | 185,000 | 191,938 |
| DJO Finance LLC (S) | 9.875 | 04/15/18 | 75,000 | 80,063 |
| Health Care Providers & Services 0.7% | ||||
| Catalent Pharma Solutions, Inc. | 9.500 | 04/15/15 | 198,004 | 199,984 |
| HCA, Inc. (Z) | 7.500 | 02/15/22 | 380,000 | 438,900 |
| Medco Health Solutions, Inc. (Z) | 7.125 | 03/15/18 | 545,000 | 674,337 |
| Pharmaceuticals 1.0% | ||||
| AbbVie, Inc. (S) | 2.900 | 11/06/22 | 435,000 | 430,136 |
| Hospira, Inc. (Z) | 6.050 | 03/30/17 | 485,000 | 559,515 |
| Mylan, Inc. (S) | 7.875 | 07/15/20 | 545,000 | 636,737 |
| Zoetis, Inc. (S) | 3.250 | 02/01/23 | 215,000 | 213,493 |
| Industrials 8.3% | 15,534,453 | |||
|
| ||||
| Aerospace & Defense 1.3% | ||||
| Ducommun, Inc. (Z) | 9.750 | 07/15/18 | 70,000 | 76,825 |
| Embraer Overseas, Ltd. (Z) | 6.375 | 01/15/20 | 380,000 | 444,600 |
| Kratos Defense & Security Solutions, Inc. | 10.000 | 06/01/17 | 350,000 | 384,125 |
| Textron Financial Corp. (6.000% to 2-15-17, then 3 month | ||||
| LIBOR + 1.735%) (S) | 6.000 | 02/15/67 | 750,000 | 675,000 |
| Textron, Inc. (Z) | 5.600 | 12/01/17 | 505,000 | 569,052 |
| Textron, Inc. (Z) | 7.250 | 10/01/19 | 270,000 | 326,300 |
| 5 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Industrials (continued) | ||||
|
| ||||
| Airlines 3.5% | ||||
| America West Airlines 2000-1 Pass Through Trust (Z) | 8.057 | 07/02/20 | $162,891 | $178,772 |
| American Airlines 2011-1 Class B Pass Through Trust (S) | 7.000 | 01/31/18 | 557,427 | 583,905 |
| Continental Airlines 1997-4 Class A Pass Through Trust (Z) | 6.900 | 01/02/18 | 396,703 | 431,653 |
| Continental Airlines 1998-1 Class A Pass Through Trust (Z) | 6.648 | 09/15/17 | 169,168 | 181,230 |
| Continental Airlines 1999-1 Class A Pass Through Trust (Z) | 6.545 | 02/02/19 | 195,216 | 214,250 |
| Continental Airlines 2000-2 Class B Pass Through Trust | 8.307 | 04/02/18 | 117,370 | 124,412 |
| Continental Airlines 2007-1 Class A Pass Through Trust (Z) | 5.983 | 04/19/22 | 505,444 | 568,625 |
| Continental Airlines 2010-1 Class A Pass Through Trust | 4.750 | 01/12/21 | 143,095 | 156,689 |
| Continental Airlines 2012-1 Class B Pass Through Trust | 6.250 | 04/11/20 | 240,000 | 255,600 |
| Delta Air Lines 2002-1 Class G-1 Pass Through Trust (Z) | 6.718 | 01/02/23 | 642,696 | 710,179 |
| Delta Air Lines 2007-1 Class A Pass Through Trust | 6.821 | 08/10/22 | 663,565 | 750,691 |
| Delta Air Lines 2010-1 Class A Pass Through Trust (Z) | 6.200 | 07/02/18 | 181,025 | 203,653 |
| Delta Air Lines 2011-1 Class A Pass Through Trust | 5.300 | 04/15/19 | 324,466 | 357,724 |
| Northwest Airlines 2002-1 Class G-2 Pass Through Trust | 6.264 | 11/20/21 | 129,150 | 134,962 |
| Northwest Airlines 2007-1 Class A Pass Through Trust (Z) | 7.027 | 11/01/19 | 390,277 | 440,037 |
| UAL 2009-1 Pass Through Trust (Z) | 10.400 | 11/01/16 | 123,974 | 143,810 |
| UAL 2009-2A Pass Through Trust (Z) | 9.750 | 01/15/17 | 337,824 | 391,031 |
| United Airlines 2007-1 Class C Pass Through Trust (P) | 2.758 | 07/02/14 | 557,290 | 550,324 |
| US Airways 2012-1 Class A Pass Through Trust | 5.900 | 10/01/24 | 175,000 | 192,500 |
| Building Products 1.0% | ||||
| Masco Corp. | 7.125 | 03/15/20 | 285,000 | 330,137 |
| Owens Corning | 4.200 | 12/15/22 | 395,000 | 400,805 |
| Ply Gem Industries, Inc. | 9.375 | 04/15/17 | 75,000 | 81,375 |
| Voto-Votorantim Overseas Trading Operations NV (S)(Z) | 6.625 | 09/25/19 | 450,000 | 526,500 |
| Voto-Votorantim, Ltd. (S) | 6.750 | 04/05/21 | 490,000 | 580,650 |
| Commercial Services & Supplies 0.5% | ||||
| Casella Waste Systems, Inc. | 7.750 | 02/15/19 | 365,000 | 352,225 |
| Garda World Security Corp. (S) | 9.750 | 03/15/17 | 100,000 | 105,750 |
| Steelcase, Inc. (Z) | 6.375 | 02/15/21 | 500,000 | 549,517 |
| Construction & Engineering 0.4% | ||||
| Aeropuertos Dominicanos Siglo XXI SA (S) | 9.250 | 11/13/19 | 300,000 | 319,500 |
| Tutor Perini Corp. | 7.625 | 11/01/18 | 335,000 | 346,725 |
| Electrical Equipment 0.1% | ||||
| Coleman Cable, Inc. | 9.000 | 02/15/18 | 205,000 | 222,425 |
| Industrial Conglomerates 0.7% | ||||
| General Electric Company | 4.125 | 10/09/42 | 210,000 | 207,683 |
| Odebrecht Finance, Ltd. (S) | 6.000 | 04/05/23 | 294,000 | 336,630 |
| Odebrecht Finance, Ltd. (S) | 7.125 | 06/26/42 | 425,000 | 491,938 |
| Odebrecht Finance, Ltd. (Q)(S) | 7.500 | 09/14/15 | 200,000 | 215,500 |
| Marine 0.2% | ||||
| Navios South American Logistics, Inc. (Z) | 9.250 | 04/15/19 | 315,000 | 315,000 |
| Professional Services 0.1% | ||||
| Dun & Bradstreet Corp. | 3.250 | 12/01/17 | 220,000 | 225,823 |
| Road & Rail 0.3% | ||||
| Penske Truck Leasing Company LP (S)(Z) | 3.750 | 05/11/17 | 460,000 | 484,246 |
| Trading Companies & Distributors 0.2% | ||||
| Air Lease Corp. | 4.500 | 01/15/16 | 95,000 | 96,425 |
| Air Lease Corp. | 5.625 | 04/01/17 | 110,000 | 116,050 |
| Aircastle, Ltd. | 7.625 | 04/15/20 | 160,000 | 183,600 |
| 6 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Information Technology 0.6% | $1,156,510 | |||
|
| ||||
| IT Services 0.6% | ||||
| Brightstar Corp. (S) | 9.500 | 12/01/16 | $560,000 | 602,000 |
| Computer Sciences Corp. | 4.450 | 09/15/22 | 225,000 | 233,497 |
| Global Generations Merger Sub, Inc. (S) | 11.000 | 12/15/20 | 305,000 | 321,013 |
| Materials 5.9% | 10,954,800 | |||
|
| ||||
| Chemicals 1.0% | ||||
| Braskem Finance, Ltd. (S) | 7.000 | 05/07/20 | 515,000 | 576,800 |
| CF Industries, Inc. | 7.125 | 05/01/20 | 580,000 | 726,321 |
| Incitec Pivot Finance LLC (S)(Z) | 6.000 | 12/10/19 | 345,000 | 389,011 |
| Polymer Group, Inc. | 7.750 | 02/01/19 | 95,000 | 103,313 |
| Construction Materials 0.5% | ||||
| American Gilsonite Company (S) | 11.500 | 09/01/17 | 290,000 | 305,950 |
| Magnesita Finance, Ltd. (Q)(S) | 8.625 | 04/05/17 | 420,000 | 447,304 |
| Severstal Columbus LLC | 10.250 | 02/15/18 | 100,000 | 107,750 |
| Vulcan Materials Company (Z) | 7.500 | 06/15/21 | 130,000 | 150,800 |
| Containers & Packaging 1.2% | ||||
| ARD Finance SA, PIK (S) | 11.125 | 06/01/18 | 274,462 | 295,733 |
| Consolidated Container Company LLC (S) | 10.125 | 07/15/20 | 320,000 | 345,600 |
| Pretium Packaging LLC | 11.500 | 04/01/16 | 165,000 | 173,250 |
| Rock-Tenn Company (S) | 4.000 | 03/01/23 | 480,000 | 478,689 |
| Temple-Inland, Inc. (Z) | 6.625 | 01/15/18 | 750,000 | 900,344 |
| Metals & Mining 2.0% | ||||
| Allegheny Technologies, Inc. (Z) | 5.950 | 01/15/21 | 140,000 | 156,070 |
| Allegheny Technologies, Inc. (Z) | 9.375 | 06/01/19 | 280,000 | 364,935 |
| ArcelorMittal | 10.350 | 06/01/19 | 370,000 | 464,662 |
| Commercial Metals Company | 7.350 | 08/15/18 | 310,000 | 341,775 |
| Edgen Murray Corp. (S)(Z) | 8.750 | 11/01/20 | 310,000 | 316,975 |
| FMG Resources August 2006 Pty, Ltd. (S) | 8.250 | 11/01/19 | 170,000 | 182,325 |
| JMC Steel Group (S) | 8.250 | 03/15/18 | 185,000 | 197,025 |
| Metinvest BV (S) | 8.750 | 02/14/18 | 435,000 | 441,329 |
| Rain CII Carbon LLC (S) | 8.000 | 12/01/18 | 340,000 | 355,300 |
| SunCoke Energy, Inc. (Z) | 7.625 | 08/01/19 | 259,000 | 273,893 |
| Thompson Creek Metals Company, Inc. | 7.375 | 06/01/18 | 395,000 | 350,563 |
| Vale Overseas, Ltd. (Z) | 6.875 | 11/10/39 | 190,000 | 225,457 |
| Paper & Forest Products 1.2% | ||||
| Georgia-Pacific LLC (S)(Z) | 5.400 | 11/01/20 | 485,000 | 571,321 |
| Georgia-Pacific LLC (Z) | 7.250 | 06/01/28 | 165,000 | 214,119 |
| International Paper Company (Z) | 9.375 | 05/15/19 | 385,000 | 525,490 |
| Westvaco Corp. | 7.950 | 02/15/31 | 770,000 | 972,696 |
| Telecommunication Services 3.9% | 7,341,390 | |||
|
| ||||
| Diversified Telecommunication Services 3.4% | ||||
| American Tower Corp. | 4.700 | 03/15/22 | 400,000 | 431,230 |
| BellSouth Telecommunications, Inc. (Z) | 6.300 | 12/15/15 | 396,557 | 417,755 |
| CenturyLink, Inc. (Z) | 5.800 | 03/15/22 | 480,000 | 502,326 |
| CenturyLink, Inc. | 6.450 | 06/15/21 | 305,000 | 333,089 |
| CenturyLink, Inc. | 7.600 | 09/15/39 | 305,000 | 311,656 |
| Crown Castle Towers LLC (S)(Z) | 4.883 | 08/15/20 | 760,000 | 862,746 |
| GTP Acquisition Partners I LLC (S) | 4.347 | 06/15/16 | 650,000 | 685,957 |
| GTP Acquisition Partners I LLC (S) | 7.628 | 06/15/16 | 650,000 | 683,380 |
| GTP Towers Issuer LLC (S) | 8.112 | 02/15/15 | 885,000 | 921,604 |
| 7 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Telecommunication Services (continued) | ||||
|
| ||||
| PAETEC Holding Corp. | 9.875 | 12/01/18 | $369,000 | $425,734 |
| Telecom Italia Capital SA | 6.999 | 06/04/18 | 330,000 | 385,144 |
| Telecom Italia Capital SA | 7.200 | 07/18/36 | 365,000 | 388,210 |
| Wireless Telecommunication Services 0.5% | ||||
| Clearwire Communications LLC (S) | 12.000 | 12/01/15 | 315,000 | 341,381 |
| SBA Tower Trust (S) | 2.933 | 12/15/17 | 395,000 | 407,671 |
| Verizon New York, Inc. | 7.000 | 12/01/33 | 235,000 | 243,507 |
| Utilities 5.3% | 9,779,289 | |||
|
| ||||
| Electric Utilities 3.5% | ||||
| Beaver Valley II Funding | 9.000 | 06/01/17 | 244,000 | 247,551 |
| BVPS II Funding Corp. (Z) | 8.890 | 06/01/17 | 398,000 | 433,755 |
| Commonwealth Edison Company (Z) | 5.800 | 03/15/18 | 525,000 | 631,047 |
| DPL, Inc. (Z) | 7.250 | 10/15/21 | 570,000 | 614,175 |
| Electricite de France SA (P)(Q)(S) | 5.250 | 01/29/23 | 205,000 | 200,262 |
| Exelon Corp. (Z) | 4.900 | 06/15/15 | 985,000 | 1,070,831 |
| FPL Energy National Wind LLC (S)(Z) | 5.608 | 03/10/24 | 206,536 | 197,081 |
| Oncor Electric Delivery Company LLC (Z) | 5.000 | 09/30/17 | 820,000 | 928,325 |
| PNM Resources, Inc. (Z) | 9.250 | 05/15/15 | 705,000 | 803,700 |
| PNPP II Funding Corp. | 9.120 | 05/30/16 | 191,000 | 198,843 |
| PPL Capital Funding, Inc. (6.700% to 3-30-17, then 3 month | ||||
| LIBOR + 2.665%) | 6.700 | 03/30/67 | 525,000 | 559,125 |
| Southern California Edison Company (6.250% to 2-1-22, | ||||
| then 3 month LIBOR + 4.199%) (Q)(Z) | 6.250 | 02/01/22 | 320,000 | 353,552 |
| TXU Corp. (Z) | 7.460 | 01/01/15 | 25,929 | 24,376 |
| W3A Funding Corp. (Z) | 8.090 | 01/02/17 | 301,225 | 309,577 |
| Independent Power Producers & Energy Traders 0.7% | ||||
| Allegheny Energy Supply Company LLC (S) | 5.750 | 10/15/19 | 775,000 | 870,306 |
| Exelon Generation Company LLC (S) | 5.600 | 06/15/42 | 200,000 | 211,650 |
| Exelon Generation Company LLC | 6.250 | 10/01/39 | 175,000 | 200,219 |
| Multi-Utilities 1.1% | ||||
| Integrys Energy Group, Inc. (6.110% to 12-1-16, then 3 | ||||
| month LIBOR + 2.120%) (Z) | 6.110 | 12/01/66 | 650,000 | 690,625 |
| MidAmerican Energy Holdings Company (Z) | 8.480 | 09/15/28 | 550,000 | 788,414 |
| Wisconsin Energy Corp. (6.250% to 5-15-17, then 3 month | ||||
| LIBOR + 2.113%) (Z) | 6.250 | 05/15/67 | 410,000 | 445,875 |
| Convertible Bonds 0.2% (0.2% of Total Investments) | $452,755 | |||
|
| ||||
| (Cost $267,530) | ||||
| Consumer Discretionary 0.2% | 452,755 | |||
|
| ||||
| Media 0.2% | ||||
| XM Satellite Radio, Inc. (S)(Z) | 7.000 | 12/01/14 | 248,000 | 452,755 |
| Municipal Bonds 0.3% (0.2% of Total Investments) | $541,946 | |||
|
| ||||
| (Cost $457,495) | ||||
| California 0.1% | 193,219 | |||
|
| ||||
| State of California | ||||
| General Obligation Bond | 7.600 | 11/01/40 | 130,000 | 193,219 |
| 8 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Illinois 0.2% | $348,727 | |||
|
| ||||
| State of Illinois | ||||
| General Obligation Bond | 5.100 | 06/01/33 | $355,000 | 348,727 |
| Term Loans (M) 0.6% (0.4% of Total Investments) | $1,125,938 | |||
|
| ||||
| (Cost $1,105,471) | ||||
| Consumer Discretionary 0.4% | 859,494 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.4% | ||||
| CCM Merger, Inc. | 6.000 | 03/01/17 | 179,589 | 181,161 |
| Kalispel Tribal Economic Authority | 7.500 | 02/24/17 | 546,299 | 547,664 |
| Landry's, Inc. | 6.500 | 04/24/18 | 129,025 | 130,669 |
| Financials 0.1% | 114,569 | |||
|
| ||||
| Real Estate Investment Trusts 0.1% | ||||
| iStar Financial, Inc. | 5.750 | 09/28/17 | 112,876 | 114,569 |
| Industrials 0.1% | 151,875 | |||
|
| ||||
| Aerospace & Defense 0.1% | ||||
| Consolidated Precision Product (T) | TBD | 12/20/19 | 150,000 | 151,875 |
| Capital Preferred Securities (a) 2.3% (1.5% of Total Investments) | $4,220,102 | |||
|
| ||||
| (Cost $4,090,835) | ||||
| Financials 2.3% | 4,220,102 | |||
|
| ||||
| Capital Markets 0.4% | ||||
| State Street Capital Trust IV (P)(Z) | 1.308 | 06/15/37 | 935,000 | 729,300 |
| Commercial Banks 1.4% | ||||
| 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 | 823,969 |
| PNC Financial Services Group, Inc. (6.750% to 8-1-21, then | ||||
| 3 month LIBOR + 3.678%) (Q)(Z) | 6.750 | 08/01/21 | 215,000 | 246,693 |
| 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 | 842,615 |
| Regions Financing Trust II (6.625% to 5-15-27, then 3 month | ||||
| LIBOR + 1.290%) | 6.625 | 05/15/47 | 260,000 | 260,000 |
| Sovereign Capital Trust VI | 7.908 | 06/13/36 | 480,000 | 499,200 |
| Insurance 0.5% | ||||
| MetLife Capital Trust X (9.250% to 4-8-38 then 3 month | ||||
| LIBOR + 5.540%) (S)(Z) | 9.250 | 04/08/68 | 315,000 | 433,125 |
| 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 | 385,200 |
| U.S. Government & Agency Obligations 33.4% (22.7% of Total Investments) | $62,209,938 | |||
|
| ||||
| (Cost $61,258,444) | ||||
| U.S. Government 2.0% | 3,805,702 | |||
|
| ||||
| U.S. Treasury Bonds | ||||
| Bond (Z) | 3.125 | 02/15/42 | 2,325,000 | 2,322,819 |
| U.S. Treasury Notes | ||||
| Note (Z) | 1.750 | 05/15/22 | 900,000 | 889,805 |
| U.S. Treasury Strips, PO (Z) | 2.907 | 11/15/30 | 1,020,000 | 593,078 |
| 9 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| U.S. Government Agency 31.4% | $58,404,236 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| 30 Yr Pass Thru (Z) | 1.750 | 05/30/19 | $1,440,000 | 1,474,157 |
| 30 Yr Pass Thru (Z) | 5.000 | 03/01/41 | 5,441,959 | 6,101,844 |
| 30 Yr Pass Thru | 6.500 | 06/01/37 | 28,343 | 31,349 |
| 30 Yr Pass Thru | 6.500 | 11/01/37 | 143,153 | 158,250 |
| 30 Yr Pass Thru (Z) | 6.500 | 12/01/37 | 64,135 | 70,899 |
| 30 Yr Pass Thru | 6.500 | 04/01/39 | 879,195 | 971,367 |
| Federal National Mortgage Association | ||||
| 30 Yr Pass Thru | 3.000 | 10/29/27 | 705,000 | 696,809 |
| 30 Yr Pass Thru | 3.000 | 12/01/42 | 4,815,597 | 4,987,214 |
| 30 Yr Pass Thru | 3.000 | 12/01/42 | 1,050,809 | 1,086,287 |
| 30 Yr Pass Thru | 3.500 | 12/01/42 | 9,980,069 | 10,566,008 |
| 30 Yr Pass Thru (Z) | 4.000 | 10/01/40 | 649,452 | 702,753 |
| 30 Yr Pass Thru (Z) | 4.000 | 09/01/41 | 4,253,400 | 4,570,578 |
| 30 Yr Pass Thru (Z) | 4.000 | 09/01/41 | 3,434,770 | 3,650,115 |
| 30 Yr Pass Thru | 4.000 | 09/01/41 | 944,189 | 1,032,301 |
| 30 Yr Pass Thru (Z) | 4.000 | 10/01/41 | 5,504,773 | 5,963,433 |
| 30 Yr Pass Thru (Z) | 4.500 | 10/01/40 | 2,917,495 | 3,190,079 |
| 30 Yr Pass Thru (Z) | 5.000 | 02/01/41 | 2,693,053 | 3,027,289 |
| 30 Yr Pass Thru (Z) | 5.000 | 04/01/41 | 803,192 | 895,723 |
| 30 Yr Pass Thru (Z) | 5.500 | 02/01/36 | 1,424,609 | 1,543,447 |
| 30 Yr Pass Thru (Z) | 5.500 | 10/01/39 | 2,584,016 | 2,799,569 |
| 30 Yr Pass Thru (Z) | 5.500 | 08/01/40 | 328,055 | 356,446 |
| 30 Yr Pass Thru | 6.000 | 05/01/37 | 1,222,772 | 1,340,306 |
| 30 Yr Pass Thru (Z) | 6.500 | 07/01/36 | 473,960 | 527,704 |
| 30 Yr Pass Thru | 6.500 | 01/01/39 | 2,245,552 | 2,491,319 |
| 30 Yr Pass Thru | 6.500 | 03/01/39 | 152,191 | 168,990 |
| Foreign Government Obligations 0.2% (0.2% of Total Investments) | $403,496 | |||
|
| ||||
| (Cost $368,774) | ||||
| South Korea 0.2% | 403,496 | |||
|
| ||||
| Korea Development Bank (Z) | 4.000 | 09/09/16 | 370,000 | 403,496 |
| Collateralized Mortgage Obligations 20.7% (14.1% of Total Investments) | $38,537,232 | |||
|
| ||||
| (Cost $36,405,087) | ||||
| Commercial & Residential 15.7% | 29,203,133 | |||
|
| ||||
| American Home Mortgage Assets LLC | ||||
| Series 2006-6, Class XP IO | 2.050 | 12/25/46 | 6,668,625 | 574,633 |
| American Tower Trust | ||||
| Series 2007-1A, Class D (S) | 5.957 | 04/15/37 | 865,000 | 881,836 |
| Americold 2010 LLC Trust | ||||
| Series 2010-ARTA, Class D (S) | 7.443 | 01/14/29 | 605,000 | 734,490 |
| Banc of America Commercial Mortgage Trust, Inc. | ||||
| Series 2006-2, Class AM (P) | 5.767 | 05/10/45 | 595,000 | 667,473 |
| Series 2006-4, Class AM | 5.675 | 07/10/46 | 845,000 | 955,249 |
| Bear Stearns Adjustable Rate Mortgage Trust, Inc. | ||||
| Series 2005-1, Class B2 (P) | 3.311 | 03/25/35 | 758,082 | 43,282 |
| Bear Stearns Alt-A Trust | ||||
| Series 2004-12, Class 1A1 (P) | 0.904 | 01/25/35 | 618,187 | 601,026 |
| Bear Stearns Asset Backed Securities Trust | ||||
| Series 2004-AC5, Class A1 | 5.250 | 10/25/34 | 454,205 | 472,373 |
| 10 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Commercial & Residential (continued) | ||||
|
| ||||
| Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||
| Series 2005-CD1, Class C (P) | 5.219 | 07/15/44 | $295,000 | $299,703 |
| Commercial Mortgage Pass Through Certificates | ||||
| Series 2012-CR5, Class XA IO | 1.952 | 12/10/45 | 4,689,554 | 577,021 |
| Series 2012-LC4, Class B (P) | 4.934 | 12/10/44 | 360,000 | 404,760 |
| Series 2012-LC4, Class C (P) | 5.649 | 12/10/44 | 645,000 | 738,579 |
| Countrywide Alternative Loan Trust | ||||
| Series 2006-OA12, Class X IO | 2.623 | 09/20/46 | 8,271,961 | 699,673 |
| Fontainebleau Miami Beach Trust | ||||
| Series 2012-FBLU, Class C (S) | 4.270 | 05/05/27 | 315,000 | 329,492 |
| Series 2012-FBLU, Class D (S) | 5.007 | 05/05/27 | 465,000 | 491,642 |
| GMAC Mortgage Corp. Loan Trust | ||||
| Series 2004-AR2, Class 3A (P) | 3.566 | 08/19/34 | 710,741 | 688,852 |
| Greenwich Capital Commercial Funding Corp. | ||||
| Series 2006-GG7, Class AM (P) | 5.867 | 07/10/38 | 670,000 | 751,848 |
| GSR Mortgage Loan Trust | ||||
| Series 2006-4F, Class 6A1 | 6.500 | 05/25/36 | 2,391,769 | 1,846,752 |
| Series 2004-9, Class B1 (P) | 3.199 | 08/25/34 | 783,675 | 331,431 |
| Harborview Mortgage Loan Trust | ||||
| Series 2004-11, Class X1 IO | 2.000 | 01/19/35 | 4,052,931 | 307,321 |
| Series 2005-11, Class X IO | 1.939 | 08/19/45 | 2,595,108 | 134,342 |
| Series 2005-2, Class IX IO | 2.221 | 05/19/35 | 9,706,029 | 671,274 |
| Series 2005-8, Class 1X IO | 2.141 | 09/19/35 | 3,762,580 | 287,499 |
| Series 2007-3, Class ES IO | 0.350 | 05/19/47 | 10,362,533 | 73,574 |
| Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 12,062,925 | 85,647 |
| Series 2007-6, Class ES IO (S) | 0.342 | 08/19/37 | 8,562,189 | 60,792 |
| IndyMac Index Mortgage Loan Trust | ||||
| Series 2005-AR18, Class 1X IO | 2.039 | 10/25/36 | 8,967,608 | 665,127 |
| Series 2005-AR18, Class 2X IO | 1.690 | 10/25/36 | 8,270,327 | 447,755 |
| JPMorgan Chase Commercial Mortgage Securities Corp. | ||||
| Series 2005-LDP5, Class AM (P) | 5.242 | 12/15/44 | 1,155,000 | 1,288,977 |
| Series 2006-LDP7, Class AM (P) | 5.872 | 04/15/45 | 735,000 | 833,841 |
| Series 2007-LD12, Class AM (P) | 6.002 | 02/15/51 | 880,000 | 986,404 |
| Series 2007-LDPX Class AM (P) | 5.464 | 01/15/49 | 650,000 | 704,330 |
| Series 2012-HSBC Class XA IO (S) | 1.431 | 07/05/32 | 3,620,000 | 417,762 |
| Series 2012-PHH, Class D (P) (S) | 3.473 | 10/15/25 | 260,000 | 263,642 |
| Merrill Lynch Mortgage Investors Trust | ||||
| Series 2007-3, Class M1 (P) | 3.402 | 09/25/37 | 240,539 | 126,358 |
| Series 2007-3, Class M2 (P) | 3.402 | 09/25/37 | 91,887 | 12,296 |
| Series 2007-3, Class M3 (P) | 3.402 | 09/25/37 | 58,836 | 2,076 |
| Morgan Stanley Capital I Trust | ||||
| Series 2006-HQ10, Class AM | 5.360 | 11/12/41 | 660,000 | 720,527 |
| Series 2006-HQ8, Class AM (P) | 5.469 | 03/12/44 | 1,020,000 | 1,131,411 |
| Motel 6 Trust | ||||
| Series 2012-MTL6, Class D (S) | 3.781 | 10/05/25 | 975,000 | 977,075 |
| Springleaf Mortgage Loan Trust | ||||
| Series 2012-2A, Class A (P) (S) | 2.220 | 10/25/57 | 455,722 | 466,386 |
| Series 2012-3A, Class M1 (P) (S) | 2.660 | 12/25/59 | 265,000 | 266,077 |
| Thornburg Mortgage Securities Trust | ||||
| Series 2004-1, Class II2A (P) | 1.904 | 03/25/44 | 735,861 | 735,185 |
| UBS Commercial Mortgage Trust | ||||
| Series 2012-C1, Class B | 4.822 | 05/10/45 | 405,000 | 446,611 |
| Series 2012-C1, Class C (P) (S) | 5.536 | 05/10/45 | 270,000 | 305,609 |
| UBS-Barclays Commercial Mortgage Trust | ||||
| Series 2012-C2, Class XA IO (S) | 1.822 | 05/10/63 | 4,981,269 | 525,613 |
| 11 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Commercial & Residential (continued) | ||||
|
| ||||
| Wachovia Bank Commercial Mortgage Trust | ||||
| Series 2007-C31, Class AM (P) | 5.591 | 04/15/47 | $285,000 | $308,708 |
| WaMu Mortgage Pass Through Certificates | ||||
| Series 2004-AR13, Class X IO | 1.358 | 11/25/34 | 10,426,702 | 433,560 |
| Series 2005-AR1, Class X IO | 1.470 | 01/25/45 | 15,205,050 | 786,585 |
| Series 2005-AR2, Class X IO | 1.563 | 01/25/45 | 11,641,363 | 731,489 |
| Series 2005-AR6, Class X IO | 1.610 | 04/25/45 | 7,074,018 | 414,273 |
| Series 2005-AR8, Class X IO | 1.595 | 07/25/45 | 12,598,435 | 746,141 |
| WF-RBS Commercial Mortgage Trust | ||||
| Series 2012-C9 XA IO (S) | 2.286 | 11/15/45 | 5,209,100 | 748,751 |
| U.S. Government Agency 5.0% | 9,334,099 | |||
|
| ||||
| Federal Home Loan Mortgage Corp. | ||||
| Series 290, Class IO | 3.500 | 11/15/32 | 3,632,518 | 759,182 |
| Series 3747, Class HI IO | 4.500 | 07/15/37 | 5,413,177 | 530,456 |
| Series 3794, Class PI IO | 4.500 | 02/15/38 | 828,422 | 86,562 |
| Series 3830, Class NI IO | 4.500 | 01/15/36 | 3,843,378 | 466,910 |
| Series 4077, Class IK IO | 5.000 | 07/15/42 | 1,046,608 | 306,388 |
| Series 4136, Class IH IO | 3.500 | 09/15/27 | 3,024,802 | 398,466 |
| Series K017, Class X1 IO | 1.455 | 12/25/21 | 2,813,931 | 278,177 |
| Series K018, Class X1 IO | 1.465 | 01/25/22 | 3,761,188 | 375,573 |
| Series K021, Class X1 IO | 1.515 | 06/25/22 | 815,323 | 90,092 |
| Series K022, Class X1 IO | 1.309 | 07/25/22 | 6,085,000 | 580,704 |
| Series K707, Class X1 IO | 1.559 | 12/25/18 | 2,462,708 | 192,520 |
| Series K708, Class X1 IO | 1.512 | 01/25/19 | 5,804,174 | 451,878 |
| Series K709, Class X1 IO | 1.546 | 03/25/19 | 3,394,238 | 272,323 |
| Series K710, Class X1 IO | 1.784 | 05/25/19 | 2,575,454 | 243,004 |
| Federal National Mortgage Association | ||||
| Series 2009-47, Class EI IO | 5.000 | 08/25/19 | 572,966 | 50,262 |
| Series 2010-68, Class CI IO | 5.000 | 11/25/38 | 1,066,665 | 146,510 |
| Series 2012-118, Class IB IO | 3.500 | 11/25/42 | 1,516,769 | 396,394 |
| Series 2012-137, Class QI IO | 3.000 | 12/25/27 | 2,981,283 | 443,150 |
| Series 2012-137, Class WI IO | 3.500 | 12/25/32 | 2,156,469 | 446,642 |
| Series 2012-98, Class JP | 3.500 | 03/25/42 | 1,194,636 | 1,265,582 |
| Series 398, Class C3 IO | 4.500 | 05/25/39 | 604,364 | 62,355 |
| Series 401, Class C2 IO | 4.500 | 06/25/39 | 428,213 | 40,896 |
| Series 402, Class 3 IO | 4.000 | 11/25/39 | 701,593 | 79,110 |
| Series 402, Class 4 IO | 4.000 | 10/25/39 | 1,147,115 | 115,168 |
| Series 402, Class 7 IO | 4.500 | 11/25/39 | 1,035,776 | 146,366 |
| Series 402, Class 8 IO | 4.500 | 11/25/39 | 1,072,577 | 139,643 |
| Series 407, Class 15 IO | 5.000 | 01/25/40 | 1,066,974 | 154,517 |
| Series 407, Class 16 IO | 5.000 | 01/25/40 | 215,704 | 25,176 |
| Series 407, Class 17 IO | 5.000 | 01/25/40 | 207,146 | 29,136 |
| Series 407, Class 21 IO | 5.000 | 01/25/39 | 730,814 | 72,715 |
| Series 407, Class 7 IO | 5.000 | 03/25/41 | 389,486 | 71,405 |
| Series 407, Class 8 IO | 5.000 | 03/25/41 | 394,702 | 58,304 |
| Series 407, Class C6 IO | 5.500 | 01/25/40 | 1,713,579 | 289,174 |
| Government National Mortgage Association | ||||
| Series 2010-78, Class AI IO | 4.500 | 04/20/39 | 975,219 | 63,203 |
| Series 2012-114, Class IO | 1.026 | 01/16/53 | 2,092,613 | 206,156 |
| 12 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Asset Backed Securities 8.7% (5.9% of Total Investments) | $16,216,792 | |||
|
| ||||
| (Cost $14,975,410) | ||||
| Asset Backed Securities 8.7% | 16,216,792 | |||
|
| ||||
| ACE Securities Corp. | ||||
| Series 2006-ASP5, Class A2B (P) | 0.334 | 10/25/36 | $355,406 | 171,031 |
| Series 2006-ASP5, Class A2C (P) | 0.384 | 10/25/36 | 311,721 | 151,152 |
| Series 2006-ASP5, Class A2D (P) | 0.464 | 10/25/36 | 595,528 | 292,203 |
| Aegis Asset Backed Securities Trust | ||||
| Series 2005-4, Class M1 (P) | 0.654 | 10/25/35 | 750,000 | 637,881 |
| Ameriquest Mortgage Securities, Inc. | ||||
| Series 2005-R1, Class M1 (P) | 0.654 | 03/25/35 | 442,240 | 435,943 |
| Series 2005-R3, Class M2 (P) | 0.674 | 05/25/35 | 480,000 | 435,079 |
| Argent Securities, Inc. | ||||
| Series 2003-W10, Class M1 (P) | 1.284 | 01/25/34 | 292,304 | 284,291 |
| Series 2004-W6, Class M1 (P) | 0.754 | 05/25/34 | 384,152 | 375,466 |
| Series 2006-M2, Class A2C (P) | 0.354 | 09/25/36 | 1,617,587 | 621,276 |
| Asset Backed Funding Certificates | ||||
| Series 2005-AQ1, Class A4 | 5.010 | 06/25/35 | 316,135 | 320,121 |
| Asset Backed Securities Corp. Home Equity | ||||
| Series 2006-HE1, Class A3 (P) | 0.404 | 01/25/36 | 583,128 | 552,567 |
| Bravo Mortgage Asset Trust | ||||
| Series 2006-1A, Class A2 (P) (S) | 0.444 | 07/25/36 | 788,604 | 688,991 |
| Carrington Mortgage Loan Trust | ||||
| Series 2005-OPT2, Class M2 (P) | 0.654 | 05/25/35 | 366,853 | 355,686 |
| Citicorp Residential Mortgage Securities, Inc. | ||||
| Series 2007-2, Class A6 | 6.265 | 06/25/37 | 346,224 | 342,927 |
| Contimortgage Home Equity Loan Trust | ||||
| Series 1995-2, Class A5 | 8.100 | 08/15/25 | 34,216 | 33,977 |
| Countrywide Asset-Backed Certificates | ||||
| Series 2004-10, Class AF5B | 5.113 | 02/25/35 | 557,226 | 569,168 |
| CSMC Trust | ||||
| Series 2006-CF2, Class M1 (P) (S) | 0.674 | 05/25/36 | 540,000 | 521,840 |
| Dominos Pizza Master Issuer LLC | ||||
| Series 2012-1A, Class A2 (S) | 5.216 | 01/25/42 | 1,098,275 | 1,239,613 |
| Encore Credit Receivables Trust | ||||
| Series 2005-2, Class M2 (P) | 0.664 | 11/25/35 | 600,000 | 547,855 |
| GSAA Trust | ||||
| Series 2005-10, Class M3 (P) | 0.754 | 06/25/35 | 675,000 | 628,234 |
| Home Equity Asset Trust | ||||
| Series 2005-5, Class M1 (P) | 0.684 | 11/25/35 | 450,000 | 439,232 |
| Leaf Receivables Funding 6 LLC | ||||
| Series 2011-1, Class A (S) | 1.700 | 12/20/18 | 68,266 | 67,870 |
| MASTR Asset Backed Securities Trust | ||||
| Series 2006-HE4, Class A2 (P) | 0.314 | 11/25/36 | 1,790,380 | 826,837 |
| Series 2007-HE2, Class A2 (P) | 0.904 | 08/25/37 | 393,847 | 380,197 |
| Merrill Lynch Mortgage Investors, Inc. | ||||
| Series 2005-WMC1, Class M1 (P) | 0.954 | 09/25/35 | 256,559 | 240,150 |
| Morgan Stanley ABS Capital I | ||||
| Series 2006-HE4, Class A3 (P) | 0.354 | 06/25/36 | 535,402 | 371,855 |
| New Century Home Equity Loan Trust | ||||
| Series 2005-3, Class M1 (P) | 0.684 | 07/25/35 | 305,000 | 299,660 |
| NovaStar Home Equity Loan | ||||
| Series 2004-4, Class M3 (P) | 1.284 | 03/25/35 | 645,000 | 628,121 |
| Park Place Securities, Inc. | ||||
| Series 2004-WHQ2, Class M2 (P) | 0.834 | 02/25/35 | 902,787 | 889,972 |
| 13 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Asset Backed Securities (continued) | ||||
|
| ||||
| People's Choice Home Loan Securities Trust | ||||
| Series 2005-1, Class M3 (P) | 1.074 | 01/25/35 | $480,000 | $470,812 |
| RAMP Trust | ||||
| Series 2005-RS3, Class M1 (P) | 0.624 | 03/25/35 | 320,000 | 300,669 |
| Sonic Capital LLC | ||||
| Series 2011-1A, Class A2 (S) | 5.438 | 05/20/41 | 564,200 | 632,136 |
| Soundview Home Loan Trust | ||||
| Series 2006-OPT2, Class A3 (P) | 0.384 | 05/25/36 | 282,218 | 251,934 |
| Westgate Resorts LLC | ||||
| Series 2012-2A, Class A (S) | 3.000 | 01/20/25 | 632,052 | 637,188 |
| Series 2012-3A, Class A (S) | 2.500 | 03/20/25 | 442,032 | 442,860 |
| Series 2012-3A, Class B (S) | 4.500 | 03/20/25 | 131,669 | 131,998 |
| Shares | Value | |||
| Common Stocks 3.0% (2.0% of Total Investments) | $5,539,619 | |||
|
| ||||
| (Cost $4,931,034) | ||||
| Consumer Discretionary 0.0% | 62,208 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.0% | ||||
| Greektown Superholdings, Inc. (I) | 768 | 62,208 | ||
| Consumer Staples 0.9% | 1,574,900 | |||
|
| ||||
| Food Products 0.4% | ||||
| Kraft Foods Group, Inc. | 15,000 | 693,300 | ||
| Tobacco 0.5% | ||||
| Philip Morris International, Inc. (Z) | 10,000 | 881,600 | ||
| Energy 0.7% | 1,265,160 | |||
|
| ||||
| Oil, Gas & Consumable Fuels 0.7% | ||||
| Royal Dutch Shell PLC, ADR | 8,000 | 564,160 | ||
| The Williams Companies, Inc. | 20,000 | 701,000 | ||
| Health Care 0.8% | 1,523,161 | |||
|
| ||||
| Pharmaceuticals 0.8% | ||||
| Eli Lilly & Company | 17,000 | 912,730 | ||
| Johnson & Johnson (Z) | 8,258 | 610,431 | ||
| Information Technology 0.3% | 547,040 | |||
|
| ||||
| Semiconductors & Semiconductor Equipment 0.3% | ||||
| Intel Corp. (Z) | 26,000 | 547,040 | ||
| Telecommunication Services 0.3% | 567,150 | |||
|
| ||||
| Diversified Telecommunication Services 0.3% | ||||
| Oi SA, ADR (Z) | 123,276 | 506,664 | ||
| Oi SA, Series C, ADR | 12,025 | 60,486 | ||
| 14 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Shares | Value | |||
| Preferred Securities (b) 2.6% (1.8% of Total Investments) | $4,801,504 | |||
|
| ||||
| (Cost $4,830,401) | ||||
| Consumer Discretionary 0.7% | 1,214,271 | |||
|
| ||||
| Hotels, Restaurants & Leisure 0.7% | ||||
| Greektown Superholdings, Inc., Series A (I) | 14,991 | 1,214,271 | ||
| Consumer Staples 0.6% | 1,152,735 | |||
|
| ||||
| Food & Staples Retailing 0.6% | ||||
| Ocean Spray Cranberries, Inc., Series A, 6.250% (S) | 12,500 | 1,152,735 | ||
| Financials 1.0% | 1,785,376 | |||
|
| ||||
| Commercial Banks 0.5% | ||||
| PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 | ||||
| month LIBOR + 4.067%) (Z) | 19,375 | 524,288 | ||
| U.S. Bancorp (6.000% to 04/15/2017, then 3 month LIBOR + | ||||
| 4.861%) | 15,475 | 416,278 | ||
| Consumer Finance 0.2% | ||||
| Ally Financial, Inc., 7.300% (Z) | 11,815 | 300,101 | ||
| Diversified Financial Services 0.3% | ||||
| Citigroup Capital XIII (7.875% to 10-30-15, then 3 month LIBOR + | ||||
| 6.370%) (Z) | 3,900 | 108,654 | ||
| GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + | ||||
| 5.785%) (Z) | 16,350 | 436,055 | ||
| Industrials 0.2% | 347,676 | |||
|
| ||||
| Aerospace & Defense 0.2% | ||||
| United Technologies Corp., 7.500% (Z) | 6,106 | 347,676 | ||
| Materials 0.0% | 62,799 | |||
|
| ||||
| Metals & Mining 0.0% | ||||
| ArcelorMittal, 6.000% | 2,420 | 62,799 | ||
| Utilities 0.1% | 238,647 | |||
|
| ||||
| Electric Utilities 0.1% | ||||
| Duke Energy Corp., 5.125% | 9,565 | 238,647 | ||
| Maturity | ||||
| Rate (%) | date | Par value | Value | |
| Escrow Certificates 0.0% (0.0% of Total Investments) | $613 | |||
|
| ||||
| (Cost $0) | ||||
| Materials 0.0% | 613 | |||
|
| ||||
| Smurfit-Stone Container Corp. (I) | 8.000 | 03/15/17 | $245,000 | 613 |
| 15 |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
| Par value | Value | |||
| Short-Term Investments 0.2% (0.1% of Total Investments) | $347,000 | |||
|
| ||||
| (Cost $347,000) | ||||
| Repurchase Agreement 0.2% | 347,000 | |||
|
| ||||
| Repurchase Agreement with State Street Corp. dated 1-31-13 at | ||||
| 0.010% to be repurchased at $347,000 on 2-1-13, collateralized by | ||||
| $350,000 U.S Treasury Notes, 1.000% due 3-31-17 (valued at | ||||
| $355,776, including interest) | $347,000 | 347,000 | ||
| Total investments (Cost $256,622,236)† 147.0% | $273,707,368 | |||
|
| ||||
| Other assets and liabilities, net (47.0%) | ($87,483,702) | |||
|
| ||||
| Total net assets 100.0% | $186,223,666 | |||
|
| ||||
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). Rate shown is the annualized yield at the end of the period.
LIBOR London Interbank Offered Rate
PIK Paid In Kind
PO Principal-Only Security - (Principal Tranche of Stripped Security). Rate shown is the annualized yield on date of purchase.
REIT Real Estate Investment Trust
TBD To Be Determined
USGG U.S. Generic Government Yield Index
(a) Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income.
(b) Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.
(I) Non-income producing security.
(M) Term loans are variable rate obligations. The coupon rate shown represents the rate at period end.
(P) Variable rate obligation. The coupon rate shown represents the rate at period end.
(Q) Perpetual bonds have no stated maturity date. Date shown as maturity date 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 $55,001,833 or 29.5% of the Fund's net assets as of 1-31-13.
(T) This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.
(Z) All or a portion of this security is segregated as collateral pursuant to the Credit Facility Agreement. Total collateral value at 1-31-13 was $141,781,248.
† At 1-31-13, the aggregate cost of investment securities for federal income tax purposes was $257,534,099. Net unrealized appreciation aggregated $16,173,269, of which $21,462,081 related to appreciated investment securities and $5,288,812 related to depreciated investment securities.
| 16 | |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
Notes to Portfolio 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. 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 the 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. Swaps are marked-to-market daily based upon values from third party vendors, which may include a registered commodities exchange, or broker quotations. 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 reliable market quotations are not 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, which include price verification procedures. The frequency with which these fair valuation procedures are used cannot be predicted.
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 other 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 or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the Fund’s investments as of January 31, 2013, by major security category or type:
| Total Market | Level 3 Significant | |||
| Value at | Level 1 Quoted | Level 2 Significant | Unobservable | |
| 1-31-13 | Price | Observable Inputs | Inputs | |
| Corporate Bonds | $139,310,433 | — | $138,666,370 | $644,063 |
| Convertible Bonds | 452,755 | — | 452,755 | — |
| Municipal Bonds | 541,946 | — | 541,946 | — |
| Term Loans | 1,125,938 | — | 1,125,938 | — |
| Capital Preferred Securities | 4,220,102 | — | 4,220,102 | — |
| U.S. Government & Agency Obligations | 62,209,938 | — | 62,209,938 | — |
| Foreign Government Obligations | 403,496 | — | 403,496 | — |
| Collateralized Mortgage Obligations | 38,537,232 | — | 38,317,219 | 220,013 |
| Asset Backed Securities | 16,216,792 | — | 16,216,792 | — |
| Common Stocks | 5,539,619 | $5,477,411 | — | 62,208 |
| Preferred Securities | 4,801,504 | 2,434,498 | 1,152,735 | 1,214,271 |
| Escrow Certificates | 613 | — | 613 | — |
| Short-Term Investments | 347,000 | — | 347,000 | — |
|
| ||||
| Total Investments in Securities | $273,707,368 | $7,911,909 | $263,654,904 | $2,140,555 |
| Other Financial Instruments | ||||
| Interest Rate Swaps | ($995,123) | — | ($995,123) | — |
| 17 | |
John Hancock Income Securities Trust
As of 1-31-13 (Unaudited)
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. Transfers into 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.
| Corporate | Collateralized | Common | Preferred | ||
| Bonds | Mortgage Obligations | Stocks | Securities | Total | |
| Balance as of 10-31-12 | $625,692 | $989,419 | $43,162 | $1,177,393 | $2,835,666 |
| Realized gain (loss) | — | — | — | — | — |
| Change in unrealized appreciation (depreciation) | 18,371 | (10,191) | 19,046 | 36,878 | $64,104 |
| Purchases | — | — | — | — | — |
| Sales | — | (48) | — | — | ($48) |
| Transfers into Level 3 | — | — | — | — | — |
| Transfers out of Level 3 | — | (759,167) | — | — | ($759,167) |
| Balance as of 1-31-13 | $644,063 | $220,013 | $62,208 | $1,214,271 | $2,140,555 |
| Change in unrealized at period end* | $18,371 | ($10,191) | $19,046 | $36,878 | $64,104 |
*Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end.
Repurchase agreements. The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement, it receives collateral, which is held in a segregated account by the Fund’s custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline.
Stripped securities. Stripped securities are financial instruments structured to separate principal and interest cash flows so that one class receives only principal payments 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 security. If the underlying 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 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.
Interest rate swaps. Interest rate swaps represent an agreement between a Fund and counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The Fund settles accrued net interest receivable or payable under the swap contracts at specified, future intervals. Swaps are marked-to-market daily based upon values from third party vendors or broker quotations, and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. A termination payment by the counterparty or the Fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the Fund.
During the period ended January 31, 2013, the Fund used interest rate swaps in anticipation of rising interest rates. The following table summarizes the interest rate swap contracts held as of January 31, 2013.
| USD Notional | Payments Made | Payments | |||
| Counterparty | Amount | by Fund | Received by Fund | Maturity Date | Market Value |
|
| |||||
| Morgan Stanley | |||||
| Capital Services | $22,000,000 | Fixed 1.442500% | 3 Month LIBOR (a) | Aug 2016 | ($725,212) |
| Morgan Stanley | |||||
| Capital Services | $22,000,000 | Fixed 1.093750% | 3 Month LIBOR (a) | May 2017 | (269,911) |
| Total | ($995,123) | ||||
(a) At 1-31-13, the 3-month LIBOR rate was 0.29800%
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/ Hugh McHaffie |
| ------------------------------- | |
| Hugh McHaffie | |
| President | |
| Date: | March 14, 2013 |
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/ Hugh McHaffie |
| ------------------------------- | |
| Hugh McHaffie | |
| President | |
| Date: | March 14, 2013 |
| By: | /s/ Charles A. Rizzo |
| -------------------------------- | |
| Charles A. Rizzo | |
| Chief Financial Officer | |
| Date: | March 14, 2013 |