| UNITED STATES | |
| SECURITIES AND EXCHANGE COMMISSION | |
| Washington, D.C. 20549 | |
| FORM N-Q | |
| QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED | |
| MANAGEMENT INVESTMENT COMPANIES | |
| Investment Company Act file number 811- 4186 | |
| John Hancock Income Securities Trust | |
| (Exact name of registrant as specified in charter) | |
| 601 Congress Street, Boston, Massachusetts 02210 | |
| (Address of principal executive offices) (Zip code) | |
| Salvatore Schiavone, Treasurer | |
| 601 Congress Street | |
| Boston, Massachusetts 02210 | |
| (Name and address of agent for service) | |
| Registrant's telephone number, including area code: 617-663-4497 | |
| Date of fiscal year end: | October 31 |
| Date of reporting period: | January 31, 2010 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Corporate Bonds 97.13% | $154,584,716 | |||
| (Cost $149,561,483) | ||||
| Consumer Discretionary 10.01% | 15,933,591 | |||
| Auto Components 0.80 % | ||||
| Allison Transmission, Inc., | ||||
| Gtd Sr Note (S)(Z) | 11.000% | 11/01/15 | $485,000 | $511,675 |
| Exide Technologies, | ||||
| Sr Sec Note, Series B (Z) | 10.500 | 03/15/13 | 445,000 | 453,900 |
| Tenneco, Inc., | ||||
| Gtd Sr Sub Note (Z) | 8.625 | 11/15/14 | 320,000 | 315,200 |
| Hotels, Restaurants & Leisure 2.82 % | ||||
| Arcos Dorados BV, | ||||
| Gtd Sr Note (S) | 7.500 | 10/01/19 | 265,000 | 264,338 |
| Chukchansi Economic Development Authority, | ||||
| Sr Note (S)(Z) | 8.000 | 11/15/13 | 460,000 | 374,900 |
| Greektown Holdings LLC, | ||||
| Sr Note (H)(S)(Z) | 10.750 | 12/01/13 | 1,015,000 | 121,800 |
| Jacobs Entertainment, Inc., | ||||
| Gtd Sr Note (Z) | 9.750 | 06/15/14 | 600,000 | 561,000 |
| Little Traverse Bay Bands of Odawa Indians, | ||||
| Sr Note (H)(S)(Z) | 10.250 | 02/15/14 | 500,000 | 125,000 |
| MTR Gaming Group, Inc., | ||||
| Gtd Sr Sec Note (S) | 12.625 | 07/15/14 | 175,000 | 171,938 |
| Gtd Sr Sub Note, Series B (Z) | 9.000 | 06/01/12 | 390,000 | 319,800 |
| Seminole Indian Tribe of Florida, | ||||
| Sr Sec Bond (S)(Z) | 6.535 | 10/01/20 | 650,000 | 594,406 |
| Turning Stone Resort Casino Enterprises, | ||||
| Sr Note (S)(Z) | 9.125 | 09/15/14 | 1,540,000 | 1,501,500 |
| Waterford Gaming LLC, | ||||
| Sr Note (S)(Z) | 8.625 | 09/15/14 | 290,000 | 165,300 |
| Yonkers Racing Corp., | ||||
| Sr Sec Note (S) | 11.375 | 07/15/16 | 280,000 | 294,700 |
| Household Durables 0.54 % | ||||
| Libbey Glass, Inc. (S) | 10.000 | 02/15/15 | 95,000 | 95,475 |
| Whirlpool Corp., | ||||
| Sr Note (Z) | 8.600 | 05/01/14 | 335,000 | 386,682 |
| Sr Note (Z) | 8.000 | 05/01/12 | 335,000 | 370,378 |
| Media 5.21 % | ||||
| AMC Entertainment, Inc., | ||||
| Sr Note | 8.750 | 06/01/19 | 125,000 | 129,375 |
| Cablevision Systems Corp., | ||||
| Sr Note (S) | 8.625 | 09/15/17 | 135,000 | 139,725 |
| Canadian Satellite Radio Holdings, Inc., | ||||
| Gtd Sr Note (Z) | 12.750 | 02/15/14 | 979,000 | 597,190 |
| CCH II LLC, | ||||
| Sr Notes (S) | 13.500 | 11/30/16 | 306,006 | 364,912 |
| Cinemark USA, Inc., | ||||
| Gtd Sr Note | 8.625 | 06/15/19 | 180,000 | 187,650 |
| Comcast Cable Holdings LLC, | ||||
| Sr Note (Z) | 9.800 | 02/01/12 | 1,500,000 | 1,708,419 |
| CSC Holdings, Inc., | ||||
| Sr Note (Z) | 7.875 | 02/15/18 | 390,000 | 406,575 |
| 2 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Consumer Discretionary (continued) | ||||
| DirecTV Holdings LLC, | ||||
| Gtd Sr Note (Z) | 7.625% | 05/15/16 | $350,000 | $383,250 |
| Gtd Sr Note (S) | 4.750 | 10/01/14 | 280,000 | 292,005 |
| Grupo Televisa SA, | ||||
| Sr Bond (S) | 6.625 | 01/15/40 | 290,000 | 294,011 |
| News America Holdings, Inc., | ||||
| Gtd Note (Z) | 7.750 | 01/20/24 | 1,020,000 | 1,208,837 |
| Gtd Note (Z) | 7.600 | 10/11/15 | 1,000,000 | 1,172,126 |
| News America, Inc., | ||||
| Gtd Sr Note | 6.900 | 03/01/19 | 205,000 | 235,107 |
| Nexstar Broadcasting, Inc., | ||||
| Gtd Note PIK (S)(Z) | 7.000 | 01/15/14 | 254,724 | 203,779 |
| Nexstar Finance, Inc., | ||||
| Sr Sub Note (Z) | 7.000 | 01/15/14 | 84,000 | 67,200 |
| Regal Cinemas Corp., | ||||
| Gtd Sr Note | 8.625 | 07/15/19 | 115,000 | 118,738 |
| Time Warner Cable, Inc., | ||||
| Gtd Sr Note (Z) | 6.750 | 07/01/18 | 605,000 | 673,908 |
| XM Satellite Radio, Inc., | ||||
| Sr Sec Note (S) | 11.250 | 06/15/13 | 100,000 | 107,000 |
| Specialty Retail 0.38 % | ||||
| Staples, Inc., | ||||
| Sr Note (Z) | 9.750 | 01/15/14 | 500,000 | 609,929 |
| Textiles, Apparel & Luxury Goods 0.26 % | ||||
| Burlington Coat Factory Warehouse Corp., | ||||
| Gtd Sr Note | 11.125 | 04/15/14 | 395,000 | 405,863 |
| Consumer Staples 6.85% | 10,904,400 | |||
| Beverages 2.36 % | ||||
| Anheuser-Busch InBev Worldwide, Inc., | ||||
| Gtd Sr Note (S) | 5.375 | 01/15/20 | 250,000 | 256,410 |
| Gtd Sr Note (S)(Z) | 4.125 | 01/15/15 | 1,000,000 | 1,027,548 |
| Miller Brewing Company, | ||||
| Gtd Note (S)(Z) | 5.500 | 08/15/13 | 1,365,000 | 1,471,295 |
| PepsiCo, Inc., | ||||
| Sr Note (Z) | 7.900 | 11/01/18 | 395,000 | 489,109 |
| SABMiller PLC, | ||||
| Sr Note (S)(Z) | 6.500 | 07/15/18 | 465,000 | 515,619 |
| Food & Staples Retailing 0.58 % | ||||
| CVS Caremark Corp., | ||||
| Jr Sub Bond (6.302% to 6-1-12 then 3 month LIBOR + | ||||
| 206.5 bps) (Z) | 6.302 | 06/01/37 | 990,000 | 920,700 |
| Food Products 1.51 % | ||||
| Bunge Ltd. Finance Corp., | ||||
| Gtd Sr Note | 8.500 | 06/15/19 | 210,000 | 246,500 |
| Gtd Sr Note (Z) | 5.350 | 04/15/14 | 1,040,000 | 1,088,673 |
| Kraft Foods, Inc., | ||||
| Sr Note (Z) | 6.000 | 02/11/13 | 685,000 | 743,778 |
| Smithfield Foods, Inc., | ||||
| Gtd Sr Sec Note (S) | 10.000 | 07/15/14 | 300,000 | 326,625 |
| 3 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Consumer Staples (continued) | ||||
| Household Products 0.29 % | ||||
| Yankee Acquisition Corp., | ||||
| Gtd Sr Sub Note (Z) | 8.500% | 02/15/15 | $455,000 | $455,000 |
| Tobacco 2.11 % | ||||
| Alliance One International, Inc., | ||||
| Gtd Sr Note (Z) | 8.500 | 05/15/12 | 245,000 | 248,675 |
| Sr Note (S)(Z) | 10.000 | 07/15/16 | 1,000,000 | 1,060,000 |
| Altria Group, Inc., | ||||
| Gtd Sr Note (Z) | 8.500 | 11/10/13 | 800,000 | 944,510 |
| Reynolds American, Inc., | ||||
| Sr Sec Note (Z) | 7.250 | 06/01/13 | 1,000,000 | 1,109,958 |
| Energy 11.57% | 18,413,813 | |||
| Energy Equipment & Services 1.87 % | ||||
| CalEnergy Company, Inc., | ||||
| Sr Bond (Z) | 8.480 | 09/15/28 | 550,000 | 701,060 |
| Gibson Energy ULC (S) | 10.000 | 01/15/18 | 265,000 | 261,688 |
| NGPL Pipeco LLC, | ||||
| Sr Note (S)(Z) | 7.119 | 12/15/17 | 1,580,000 | 1,794,436 |
| Petrobras International Finance Company, | ||||
| Gtd Sr Note | 5.750 | 01/20/20 | 215,000 | 212,606 |
| Oil, Gas & Consumable Fuels 9.70 % | ||||
| Arch Coal, Inc., | ||||
| Sr Note (S) | 8.750 | 08/01/16 | 100,000 | 106,500 |
| ConocoPhillips, | ||||
| Gtd Note (Z) | 4.400 | 05/15/13 | 1,000,000 | 1,071,739 |
| Drummond Company, Inc., | ||||
| Sr Note | 7.375 | 02/15/16 | 290,000 | 284,925 |
| Energy Transfer Partners LP, | ||||
| Sr Note (Z) | 9.700 | 03/15/19 | 330,000 | 419,853 |
| Sr Note (Z) | 8.500 | 04/15/14 | 1,000,000 | 1,173,988 |
| Enterprise Products Operating LLC, | ||||
| Gtd Jr Sub Note (7.000% to 6-1-17 then 3 month LIBOR | ||||
| + 277.75 bps) (Z) | 7.000 | 06/01/67 | 695,000 | 632,450 |
| Gtd Jr Sub Note (7.034% to 1-15-18 then greater of | ||||
| 7.034% and 3 month LIBOR + 268 bps) (Z) | 7.034 | 01/15/68 | 590,000 | 557,550 |
| Gulf South Pipeline Company LP, | ||||
| Sr Note (S)(Z) | 5.750 | 08/15/12 | 1,000,000 | 1,067,009 |
| Kinder Morgan Energy Partners LP, | ||||
| Sr Bond (Z) | 9.000 | 02/01/19 | 505,000 | 642,722 |
| Sr Bond (Z) | 7.750 | 03/15/32 | 195,000 | 226,668 |
| MarkWest Energy Partners LP, | ||||
| Gtd Sr Note, Series B (Z) | 8.500 | 07/15/16 | 545,000 | 557,263 |
| McMoRan Exploration Company, | ||||
| Gtd Sr Note (Z) | 11.875 | 11/15/14 | 340,000 | 370,600 |
| Motiva Enterprises LLC (S) | 6.850 | 01/15/40 | 280,000 | 302,205 |
| Nustar Logistics LP, | ||||
| Gtd Sr Note | 7.650 | 04/15/18 | 845,000 | 956,961 |
| ONEOK Partners LP, | ||||
| Gtd Sr Note (Z) | 6.150 | 10/01/16 | 705,000 | 775,174 |
| Petro-Canada, | ||||
| Debenture (Z) | 9.250 | 10/15/21 | 1,000,000 | 1,309,160 |
| Sr Note (Z) | 6.050 | 05/15/18 | 400,000 | 435,834 |
| 4 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Energy (continued) | ||||
| Petroleos Mexicanos, | ||||
| Gtd Note (S)(Z) | 4.875% | 03/15/15 | $490,000 | $493,675 |
| Plains All American Pipeline LP, | ||||
| Sr Note (Z) | 4.250 | 09/01/12 | 600,000 | 627,746 |
| Regency Energy Partners LP, | ||||
| Sr Note (S)(Z) | 9.375 | 06/01/16 | 280,000 | 303,450 |
| Spectra Energy Capital LLC, | ||||
| Gtd Sr Note | 6.200 | 04/15/18 | 1,000,000 | 1,086,806 |
| Williams Partners Finance Corp., | ||||
| Gtd Sr Note (Z) | 7.250 | 02/01/17 | 1,265,000 | 1,417,875 |
| Woodside Finance, Ltd., | ||||
| Note (S)(Z) | 4.500 | 11/10/14 | 605,000 | 623,870 |
| Financials 34.47% | 54,857,097 | |||
| Capital Markets 4.20 % | ||||
| Charles Schwab Corp., | ||||
| Sr Note (Z) | 4.950 | 06/01/14 | 900,000 | 961,507 |
| Goldman Sachs Group, Inc., | ||||
| Sr Note (Z) | 7.500 | 02/15/19 | 485,000 | 562,153 |
| Sr Note (Z) | 5.125 | 01/15/15 | 760,000 | 800,223 |
| Jefferies Group, Inc., | ||||
| Sr Note (Z) | 7.750 | 03/15/12 | 490,000 | 535,993 |
| Macquarie Group, Ltd., | ||||
| Sr Note (S)(Z) | 7.300 | 08/01/14 | 270,000 | 299,204 |
| Sr Note (S) | 6.000 | 01/14/20 | 340,000 | 336,009 |
| Morgan Stanley Company, | ||||
| Series GMTN | 4.100 | 01/26/15 | 500,000 | 497,356 |
| Sr Note (Z) | 7.300 | 05/13/19 | 485,000 | 547,888 |
| Sr Note (Z) | 5.375 | 10/15/15 | 1,000,000 | 1,056,392 |
| Northern Trust Company, | ||||
| Sub Note (Z) | 6.500 | 08/15/18 | 225,000 | 254,364 |
| Northern Trust Corp., | ||||
| Sr Note (Z) | 4.625 | 05/01/14 | 370,000 | 399,022 |
| TD Ameritrade Holding Corp., | ||||
| Gtd Note (Z) | 5.600 | 12/01/19 | 435,000 | 439,687 |
| Commercial Banks 5.86 % | ||||
| Australia & New Zealand Banking Group, Ltd., | ||||
| Sr Notes (S) | 5.100 | 01/13/20 | 435,000 | 439,722 |
| Bank of Nova Scotia, | ||||
| Sr Note | 3.400 | 01/22/15 | 1,000,000 | 1,013,803 |
| Barclays Bank PLC, | ||||
| Jr Sub Note (6.860% to 6-15-32 then 6 month LIBOR + | ||||
| 173 bps) (S)(Z) | 6.860 | 01/22/15 | 1,655,000 | 1,381,925 |
| Groupe BPCE SA, | ||||
| Sub Bond (12.500% to 9-30-19 then 3 month LIBOR + | ||||
| 12.98%) (S) | 12.500 | 08/29/49 | 330,000 | 397,432 |
| Chuo Mitsui Trust & Banking Company, Ltd., | ||||
| Jr Sub Note (5.506% to 4-15-15 then 3 month LIBOR + | ||||
| 249 bps) (S)(Z) | 5.506 | 12/29/49 | 940,000 | 918,465 |
| Credit Suisse New York, | ||||
| Sr Note (Z) | 5.300 | 08/13/19 | 415,000 | 426,635 |
| Mizuho Financial Group, Ltd., | ||||
| Gtd Sub Bond | 8.375 | 01/29/49 | 260,000 | 260,650 |
| Regions Financial Corp. (Z) | 7.750 | 11/10/14 | 1,000,000 | 1,033,303 |
| 5 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Financials (continued) | ||||
| Santander Issuances S.A. Unipersonal, | ||||
| Sub Note (6.50 to 8-11-14 then 3 month LIBOR + 392 | ||||
| bps) (S)(Z) | 6.500% | 08/11/19 | $1,200,000 | $1,258,184 |
| Sovereign Capital Trust VI, | ||||
| Gtd Note (Z) | 7.908 | 06/13/36 | 480,000 | 447,938 |
| Wachovia Bank NA, | ||||
| Sub Note (Z) | 5.850 | 02/01/37 | 390,000 | 373,192 |
| Sub Note Series BKNT (Z) | 6.600 | 01/15/38 | 325,000 | 343,975 |
| Wells Fargo Bank NA, | ||||
| Sub Bonds (Z) | 5.750 | 05/16/16 | 450,000 | 474,728 |
| Westpac Banking Corp., | ||||
| Sr Note (Z) | 4.875 | 11/19/19 | 565,000 | 562,178 |
| Consumer Finance 3.69 % | ||||
| American Express Credit Company, | ||||
| Sr Note, Series C (Z) | 7.300 | 08/20/13 | 670,000 | 761,218 |
| Capital One Financial Corp., | ||||
| Sr Note (Z) | 7.375 | 05/23/14 | 990,000 | 1,133,216 |
| Sr Note (Z) | 6.750 | 09/15/17 | 1,000,000 | 1,103,651 |
| Discover Financial Services, | ||||
| Sr Note | 10.250 | 07/15/19 | 585,000 | 698,512 |
| Ford Motor Credit Company LLC, | ||||
| Sr Note (Z) | 8.000 | 12/15/16 | 140,000 | 140,830 |
| Sr Note | 7.500 | 08/01/12 | 90,000 | 91,176 |
| Nelnet, Inc., | ||||
| Note (7.400% to 9-29-11 then 3 month LIBOR + 337.5 | ||||
| bps) (Z) | 7.400 | 09/29/36 | 715,000 | 552,332 |
| Nissan Motor Acceptance Corp. | 4.500 | 01/30/15 | 1,000,000 | 1,004,078 |
| SLM Corp., | ||||
| Sr Note Series MTN (Z) | 8.450 | 06/15/18 | 395,000 | 387,100 |
| Diversified Financial Services 10.73 % | ||||
| American Honda Finance Corp., | ||||
| Note (S)(Z) | 7.625 | 10/01/18 | 655,000 | 759,761 |
| Astoria Depositor Corp., | ||||
| Series B (S) | 8.144 | 05/01/21 | 1,000,000 | 900,000 |
| Bear Stearns Companies, Inc., | ||||
| Sr Note (Z) | 7.250 | 02/01/18 | 1,000,000 | 1,146,781 |
| Beaver Valley Funding, | ||||
| Sec Lease Obligation Bond (Z) | 9.000 | 06/01/17 | 598,000 | 655,504 |
| Bosphorus Financial Services, Ltd., | ||||
| Sec Floating Rate Note (S)(Z) | 2.073 | 02/15/12 | 281,250 | 268,846 |
| Citigroup, Inc., | ||||
| Sr Note (Z) | 6.375 | 08/12/14 | 810,000 | 859,519 |
| Sr Note (Z) | 6.125 | 11/21/17 | 1,935,000 | 1,956,964 |
| Sr Note (Z) | 5.850 | 12/11/34 | 300,000 | 269,308 |
| CME Group, Inc., | ||||
| Sr Note (Z) | 5.750 | 02/15/14 | 1,000,000 | 1,103,177 |
| ERAC USA Finance Company, | ||||
| Gtd Sr Note (S)(Z) | 6.375 | 10/15/17 | 465,000 | 507,838 |
| ESI Tractebel Acquisition Corp., | ||||
| Gtd Sec Bond Series B (Z) | 7.990 | 12/30/11 | 546,000 | 546,697 |
| General Electric Capital Corp., | ||||
| Sr Note Series GMTN (Z) | 6.000 | 08/07/19 | 335,000 | 346,753 |
| 6 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Financials (continued) | ||||
| Harley-Davidson Funding Corp., | ||||
| Gtd Sr Note (S)(Z) | 5.750% | 12/15/14 | $290,000 | $304,918 |
| Series C (S) | 6.800 | 06/15/18 | 300,000 | 312,397 |
| Hyundai Capital Services, | ||||
| Sr Note (S)(Z) | 6.000 | 05/05/15 | 430,000 | 457,003 |
| JPMorgan Chase & Company, | ||||
| Jr Sub Note, Series I (7.900% to 4-30-18 then 3 month | ||||
| LIBOR + 347 bps) (Z) | 7.900 | 04/29/49 | 655,000 | 670,923 |
| Sr Note (Z) | 4.650 | 06/01/14 | 590,000 | 621,284 |
| Sr. Bond (Z) | 6.000 | 01/15/18 | 765,000 | 826,526 |
| Merrill Lynch & Company, Inc., | ||||
| Sr Note, Series MTN (Z) | 6.150 | 04/25/13 | 1,000,000 | 1,081,901 |
| Sub Notes (Z) | 7.750 | 05/14/38 | 495,000 | 544,582 |
| PNC Funding Corp., | ||||
| Gtd Sr Note (Z) | 4.250 | 09/21/15 | 695,000 | 720,748 |
| SMFG Preferred Capital, | ||||
| Sub Bond (6.078% to 1-25-17 then 6 month LIBOR + 205 | ||||
| bps) (S) | 6.078 | 01/29/49 | 590,000 | 561,603 |
| USB Realty Corp., | ||||
| Perpetual Bond (6.091% to 1-15-12 then 3 month LIBOR | ||||
| + 114.7 bps) (S)(Z) | 6.091 | 12/29/49 | 800,000 | 614,000 |
| Volvo Treasury AB, Gtd Sr Note | 5.950 | 04/01/15 | 555,000 | 587,781 |
| Voto-Votorantim Overseas Trading Operations NV, | ||||
| Gtd Sr Note (S) | 6.625 | 09/25/19 | 450,000 | 445,500 |
| Insurance 6.09 % | ||||
| Aflac, Inc., | ||||
| Sr Note (Z) | 8.500 | 05/15/19 | 335,000 | 392,324 |
| Sr Note (Z) | 6.900 | 12/17/39 | 230,000 | 230,368 |
| CNA Financial Corp., | ||||
| Sr Note | 7.350 | 11/15/19 | 320,000 | 335,275 |
| Sr Note (Z) | 6.500 | 08/15/16 | 825,000 | 846,847 |
| Horace Mann Educators Corp., | ||||
| Sr Note (Z) | 6.850 | 04/15/16 | 395,000 | 401,298 |
| Liberty Mutual Group, Inc., | ||||
| Bond (S)(Z) | 7.300 | 06/15/14 | 750,000 | 793,961 |
| Gtd Bond (S)(Z) | 7.800 | 03/15/37 | 705,000 | 606,300 |
| Gtd Bond (S)(Z) | 7.500 | 08/15/36 | 885,000 | 844,944 |
| Lincoln National Corp., | ||||
| Jr Sub Bond (6.050% to 4-20-17 then 3 month LIBOR + | ||||
| 204 bps) (Z) | 6.050 | 04/20/67 | 250,000 | 190,625 |
| Sr Note (Z) | 8.750 | 07/01/19 | 510,000 | 619,788 |
| Massachusetts Mutual Life Insurance Company, | ||||
| Sub Note (S) | 8.875 | 06/01/39 | 210,000 | 271,573 |
| MetLife, Inc., | ||||
| Sr Note (Z) | 6.750 | 06/01/16 | 335,000 | 383,535 |
| New York Life Insurance Company, | ||||
| Sub Note (S)(Z) | 6.750 | 11/15/39 | 540,000 | 581,571 |
| Progressive Corp., | ||||
| Sub Debenture (6.700% to 6-15-17 then 3 month LIBOR | ||||
| + 201.75 bps) (Z) | 6.700 | 06/15/37 | 330,000 | 303,600 |
| Prudential Financial, Inc., | ||||
| Sr Note MTN, Series D | 7.375 | 06/15/19 | 210,000 | 241,786 |
| QBE Insurance Group, Ltd., | ||||
| Sr Note (S)(Z) | 9.750 | 03/14/14 | 486,000 | 555,160 |
| 7 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Financials (continued) | ||||
| Teachers Insurance & Annuity Association of America, | ||||
| Notes (S)(Z) | 6.850% | 12/16/39 | $605,000 | $652,051 |
| Unum Group, | ||||
| Sr Note | 7.125 | 09/30/16 | 390,000 | 418,076 |
| UnumProvident Finance Company PLC, | ||||
| Gtd Sr Debenture (S)(Z) | 6.850 | 11/15/15 | 605,000 | 646,219 |
| W.R. Berkley Corp., | ||||
| Sr Note (Z) | 5.600 | 05/15/15 | 365,000 | 372,210 |
| Real Estate Investment Trusts 3.90 % | ||||
| AMB Property L.P., | ||||
| Gtd Note (Z) | 6.625 | 12/01/19 | 490,000 | 506,648 |
| Boston Properties LP, | ||||
| Sr Note | 5.875 | 10/15/19 | 265,000 | 275,929 |
| Brandywine Operating Partnership LP, | ||||
| Gtd Sr Note (Z) | 7.500 | 05/15/15 | 345,000 | 364,706 |
| Dexus Property Group, | ||||
| Gtd Note (S)(Z) | 7.125 | 10/15/14 | 495,000 | 525,592 |
| Duke Realty LP, | ||||
| Sr Note (Z) | 8.250 | 08/15/19 | 500,000 | 555,786 |
| Health Care REIT, Inc., | ||||
| Sr Note (Z) | 6.200 | 06/01/16 | 505,000 | 518,931 |
| Healthcare Realty Trust, Inc., | ||||
| Sr Note (Z) | 8.125 | 05/01/11 | 175,000 | 185,655 |
| Sr Note (Z) | 6.500 | 01/17/17 | 540,000 | 563,675 |
| HRPT Properties Trust, | ||||
| Sr Note (Z) | 6.650 | 01/15/18 | 285,000 | 283,426 |
| Mack-Cali Realty Corp., | ||||
| Sr Note (Z) | 7.750 | 08/15/19 | 330,000 | 367,398 |
| ProLogis, | ||||
| Sr Note (Z) | 6.625 | 05/15/18 | 605,000 | 613,771 |
| Sr Note (Z) | 5.625 | 11/15/15 | 385,000 | 385,451 |
| Simon Property Group LP, | ||||
| Sr Note (Z) | 10.350 | 04/01/19 | 345,000 | 449,252 |
| WEA Finance LLC, | ||||
| Gtd Sr Note (S) | 6.750 | 09/02/19 | 290,000 | 315,371 |
| Gtd Sr Note (S)(Z) | 5.400 | 10/01/12 | 275,000 | 293,640 |
| Health Care 3.84% | 6,113,403 | |||
| Health Care Equipment & Supplies 1.16 % | ||||
| Covidien International Finance SA, | ||||
| Gtd Sr Note (Z) | 5.450 | 10/15/12 | 930,000 | 1,023,184 |
| Hospira, Inc., | ||||
| Sr Note (Z) | 6.050 | 03/30/17 | 485,000 | 524,911 |
| Inverness Medical Innovations, Inc., | ||||
| Sr Note (S) | 7.875 | 02/01/16 | 305,000 | 299,663 |
| Health Care Providers & Services 2.34 % | ||||
| CIGNA Corp., | ||||
| Sr Note (Z) | 6.375 | 10/15/11 | 640,000 | 683,754 |
| Express Scripts, Inc., | ||||
| Sr Note (Z) | 6.250 | 06/15/14 | 935,000 | 1,047,885 |
| Medco Health Solutions, Inc., | ||||
| Sr Note (Z) | 7.250 | 08/15/13 | 850,000 | 969,835 |
| 8 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Health Care (continued) | ||||
| Sun Healthcare Group, Inc., | ||||
| Gtd Sr Sub Note (Z) | 9.125% | 04/15/15 | $1,000,000 | $1,025,000 |
| Pharmaceuticals 0.34 % | ||||
| Catalent Pharma Solutions, Inc., Gtd Sr Note | 9.500 | 04/15/15 | 105,000 | 98,175 |
| Watson Pharmaceuticals, Inc., | ||||
| Sr Note (Z) | 6.125 | 08/15/19 | 415,000 | 440,996 |
| Industrials 7.93% | 12,622,516 | |||
| Aerospace & Defense 0.24 % | ||||
| Embraer Overseas, Ltd., | ||||
| Gtd Sr Note (Z) | 6.375 | 01/15/20 | 380,000 | 378,100 |
| Airlines 2.47 % | ||||
| Continental Airlines, Inc., | ||||
| Pass Thru Ctf, Series 1991-1, Class A (Z) | 6.545 | 02/02/19 | 278,199 | 278,199 |
| Pass Thru Ctf, Series 1998-1, Class A | 6.648 | 09/15/17 | 172,260 | 167,092 |
| Pass Thru Ctf, Series 2000-2, Class B (Z) | 8.307 | 04/02/18 | 365,717 | 340,116 |
| Pass Thru Ctf, Series 2001-1, Class C (Z) | 7.033 | 06/15/11 | 93,863 | 88,701 |
| Delta Air Lines, Inc., | ||||
| Pass Thru Ctf, Series 2002-1, Class G-1 | 6.718 | 01/02/23 | 442,955 | 403,089 |
| Series 2007-1 Class A (Z) | 6.821 | 08/10/22 | 704,658 | 688,804 |
| Sr Note (S) | 9.500 | 09/15/14 | 360,000 | 375,300 |
| Northwest Airlines, Inc., | ||||
| Gtd Note, Series 2007-1, Class A (Z) | 7.027 | 11/01/19 | 436,769 | 384,357 |
| Series 2002-1 | 6.264 | 11/20/21 | 564,758 | 516,754 |
| United Air Lines, Inc., | ||||
| Gtd Note | 10.400 | 11/01/16 | 195,000 | 210,113 |
| Gtd Note (Z) | 9.750 | 01/15/17 | 455,000 | 477,750 |
| Commercial Services & Supplies 0.10 % | ||||
| ACCO Brands Corp., | ||||
| Gtd Sr Note (S) | 10.625 | 03/15/15 | 80,000 | 87,600 |
| The Geo Group, Inc., | ||||
| Gtd Sr Note (S) | 7.750 | 10/15/17 | 70,000 | 71,400 |
| Electrical Equipment 0.13 % | ||||
| Coleman Cable, Inc., | ||||
| Sr Notes (S) | 9.000 | 02/15/18 | 205,000 | 202,438 |
| Industrial Conglomerates 0.64 % | ||||
| Hutchison Whampoa International, Ltd., | ||||
| Gtd Note (S)(Z) | 5.750 | 09/11/19 | 615,000 | 623,611 |
| Gtd Sr Note (S)(Z) | 6.500 | 02/13/13 | 365,000 | 403,492 |
| Machinery 1.45 % | ||||
| Case New Holland, Inc., | ||||
| Gtd Sr Note (S)(Z) | 7.750 | 09/01/13 | 335,000 | 344,213 |
| Ingersoll-Rand Global Holding Company, Ltd., | ||||
| Gtd Note (Z) | 6.875 | 08/15/18 | 545,000 | 612,850 |
| Gtd Note (Z) | 6.000 | 08/15/13 | 540,000 | 597,104 |
| Manitowoc, Inc., | ||||
| Gtd Sr Note (Z) | 7.125 | 11/01/13 | 500,000 | 483,750 |
| Terex Corp., | ||||
| Sr Note | 10.875 | 06/01/16 | 250,000 | 275,625 |
| 9 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Industrials (continued) | ||||
| Marine 0.62 % | ||||
| Navios Maritime Holdings, Inc., | ||||
| Sr Note (Z) | 9.500% | 12/15/14 | $1,000,000 | $993,750 |
| Road & Rail 1.51 % | ||||
| CSX Corp., | ||||
| Sr Note (Z) | 5.500 | 08/01/13 | 620,000 | 672,632 |
| Sr Note (Z) | 6.300 | 03/15/12 | 1,000,000 | 1,086,811 |
| Kansas City Southern de Mexico SA de CV, | ||||
| Sr Note | 9.375 | 05/01/12 | 140,000 | 143,500 |
| Sr Notes (S) | 8.000 | 02/01/18 | 245,000 | 241,325 |
| RailAmerica, Inc., | ||||
| Sr Sec Note | 9.250 | 07/01/17 | 239,000 | 253,340 |
| Trading Companies & Distributors 0.48 % | ||||
| GATX Corp., | ||||
| Sr Note (Z) | 8.750 | 05/15/14 | 550,000 | 629,294 |
| United Rentals North America, Inc., | ||||
| Gtd Sr Note | 10.875 | 06/15/16 | 125,000 | 136,406 |
| Transportation Infrastructure 0.29 % | ||||
| CMA CGM SA, | ||||
| Sr Note (S)(Z) | 7.250 | 02/01/13 | 700,000 | 455,000 |
| Information Technology 2.36% | 3,753,734 | |||
| Electronic Equipment, Instruments & Components 1.37 % | ||||
| Amphenol Corp., | ||||
| Sr Note (Z) | 4.750 | 11/15/14 | 540,000 | 552,474 |
| Freescale Semiconductor, Inc., | ||||
| Gtd Sr Note (Z) | 8.875 | 12/15/14 | 1,000,000 | 890,000 |
| Tyco Electronics Group SA, | ||||
| Gtd Note | 6.000 | 10/01/12 | 415,000 | 449,920 |
| Gtd Sr Note | 6.550 | 10/01/17 | 260,000 | 282,626 |
| IT Services 0.32 % | ||||
| Fiserv, Inc., | ||||
| Gtd Sr Note (Z) | 6.800 | 11/20/17 | 460,000 | 517,169 |
| Office Electronics 0.67 % | ||||
| Xerox Corp., | ||||
| Sr Note (Z) | 8.250 | 05/15/14 | 275,000 | 323,429 |
| Sr Note (Z) | 6.750 | 02/01/17 | 670,000 | 738,116 |
| Materials 6.66% | 10,607,318 | |||
| Chemicals 1.37 % | ||||
| American Pacific Corp., | ||||
| Gtd Sr Note (Z) | 9.000 | 02/01/15 | 590,000 | 582,625 |
| Incitec Pivot Finance LLC, Gtd Note (S) | 6.000 | 12/10/19 | 345,000 | 346,011 |
| Mosaic Company, | ||||
| Sr Note (S)(Z) | 7.625 | 12/01/16 | 480,000 | 524,757 |
| RPM International, Inc., | ||||
| Sr Note (Z) | 6.500 | 02/15/18 | 325,000 | 350,018 |
| Sterling Chemicals, Inc., | ||||
| Gtd Sr Sec Note (Z) | 10.250 | 04/01/15 | 400,000 | 386,000 |
| 10 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Materials (continued) | ||||
| Containers & Packaging 1.09 % | ||||
| BWAY Corp., | ||||
| Sr Sub Note (S)(Z) | 10.000% | 04/15/14 | $315,000 | $332,325 |
| Graphic Packaging International, Inc., | ||||
| Gtd Sr Note | 9.500 | 06/15/17 | 115,000 | 122,763 |
| Smurfit-Stone Container Enterprises, Inc., | ||||
| Sr Note (H)(Z) | 8.375 | 07/01/12 | 1,000,000 | 842,500 |
| Sr Note (H)(Z) | 8.000 | 03/15/17 | 245,000 | 203,963 |
| Solo Cup Company, Sr Sec Note | 10.500 | 11/01/13 | 85,000 | 89,250 |
| US Corrugated, Inc., | ||||
| Sr Sec Note | 10.000 | 06/12/13 | 160,000 | 137,600 |
| Metals & Mining 2.45 % | ||||
| Allegheny Technologies, Inc., | ||||
| Sr Note (Z) | 9.375 | 06/01/19 | 280,000 | 334,301 |
| ArcelorMittal, | ||||
| Sr Note (Z) | 9.850 | 06/01/19 | 540,000 | 685,939 |
| CII Carbon LLC, | ||||
| Gtd Sr Sub Note (S)(Z) | 11.125 | 11/15/15 | 1,015,000 | 1,025,150 |
| Commercial Metals Company, | ||||
| Sr Note (Z) | 7.350 | 08/15/18 | 310,000 | 329,962 |
| Gerdau Holdings, Inc., | ||||
| Gtd Sr Note (S) | 7.000 | 01/20/20 | 335,000 | 336,675 |
| Rio Tinto Alcan, Inc., | ||||
| Sr Note (Z) | 6.125 | 12/15/33 | 415,000 | 422,030 |
| Rio Tinto Finance USA, Ltd., | ||||
| Gtd Sr Note (Z) | 8.950 | 05/01/14 | 365,000 | 440,266 |
| Vale Overseas, Ltd., | ||||
| Gtd Note | 6.875 | 11/10/39 | 320,000 | 326,762 |
| Paper & Forest Products 1.75 % | ||||
| International Paper Company, | ||||
| Sr Note (Z) | 9.375 | 05/15/19 | 385,000 | 482,040 |
| Sr Note (Z) | 7.950 | 06/15/18 | 530,000 | 614,163 |
| NewPage Corp., | ||||
| Gtd Sr Sec Note | 11.375 | 12/31/14 | 135,000 | 130,613 |
| PE Paper Escrow GmbH, | ||||
| Sr Sec Note (S) | 12.000 | 08/01/14 | 100,000 | 110,500 |
| Verso Paper Holdings LLC, | ||||
| Gtd Sr Note Series B (Z) | 9.125 | 08/01/14 | 1,000,000 | 943,750 |
| Westvaco Corp. (Z) | 7.950 | 02/15/31 | 475,000 | 507,355 |
| Telecommunication Services 4.48% | 7,126,699 | |||
| Diversified Telecommunication Services 2.80 % | ||||
| Axtel SAB de CV, | ||||
| Sr Note (S) | 9.000 | 09/22/19 | 160,000 | 164,400 |
| BellSouth Corp., | ||||
| Debenture (Z) | 6.300 | 12/15/15 | 725,768 | 776,986 |
| Intelsat Jackson Holdings, Ltd., | ||||
| Gtd Sr Note | 11.500 | 06/15/16 | 365,000 | 388,725 |
| Qwest Corp., | ||||
| Sr Note (Z) | 8.375 | 05/01/16 | 330,000 | 361,350 |
| Sr Note (Z) | 7.875 | 09/01/11 | 445,000 | 466,138 |
| Telecom Italia Capital SA, | ||||
| Gtd Sr Note (Z) | 6.175 | 06/18/14 | 1,110,000 | 1,217,250 |
| 11 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Telecommunication Services (continued) | ||||
| Verizon Wireless Capital LLC, | ||||
| Sr Note (Z) | 7.375% | 11/15/13 | $355,000 | $413,328 |
| West Corp., | ||||
| Gtd Sr Sub Note (Z) | 11.000 | 10/15/16 | 630,000 | 670,950 |
| Wireless Telecommunication Services 1.68 % | ||||
| American Tower Corp., | ||||
| Sr Note (S) | 4.625 | 04/01/15 | 340,000 | 349,559 |
| Digicel Group, Ltd., | ||||
| Sr Note (S)(Z) | 8.875 | 01/15/15 | 1,080,000 | 1,047,600 |
| NII Capital Corp., | ||||
| Gtd Sr Note (S) | 10.000 | 08/15/16 | 230,000 | 240,350 |
| SBA Telecommunications, Inc., | ||||
| Gtd Sr Note (S) | 8.000 | 08/15/16 | 135,000 | 140,063 |
| Sprint Capital Corp., | ||||
| Gtd Sr Note (Z) | 6.900 | 05/01/19 | 1,000,000 | 890,000 |
| Utilities 8.96% | 14,252,145 | |||
| Electric Utilities 5.50 % | ||||
| Allegheny Energy Supply Company LLC, | ||||
| Sr Note (S)(Z) | 5.750 | 10/15/19 | 290,000 | 294,083 |
| Aquila, Inc., | ||||
| Sr Note (Z) | 11.875 | 07/01/12 | 405,000 | 476,151 |
| BVPS II Funding Corp., | ||||
| Collateralized Lease Bond (Z) | 8.890 | 06/01/17 | 621,000 | 698,535 |
| Commonwealth Edison Company, | ||||
| Sr Sec Bond (Z) | 5.800 | 03/15/18 | 705,000 | 763,762 |
| Series 106 | 6.150 | 09/15/17 | 230,000 | 256,443 |
| Delmarva Power & Light Company, | ||||
| 1st Mtg Bond (Z) | 6.400 | 12/01/13 | 345,000 | 385,526 |
| Duke Energy Corp., | ||||
| Sr Note (Z) | 6.300 | 02/01/14 | 340,000 | 381,151 |
| Exelon Corp., | ||||
| Sr Note (Z) | 4.900 | 06/15/15 | 985,000 | 1,034,282 |
| Firstenergy Solutions Corp. (Z) | 4.800 | 02/15/15 | 370,000 | 384,943 |
| FPL Energy National Wind LLC, | ||||
| Sr Sec Note (S)(Z) | 5.608 | 03/10/24 | 297,656 | 293,724 |
| ITC Holdings Corp., | ||||
| Sr Note (S)(Z) | 5.875 | 09/30/16 | 175,000 | 184,998 |
| Sr Note (S)(Z) | 5.500 | 01/15/20 | 415,000 | 424,272 |
| Monongahela Power Company, | ||||
| Sec Bond (S)(Z) | 7.950 | 12/15/13 | 635,000 | 715,046 |
| Pepco Holdings, Inc., | ||||
| Sr Note (Z) | 6.450 | 08/15/12 | 565,000 | 615,233 |
| PNPP II Funding Corp., | ||||
| Sec Bond (Z) | 9.120 | 05/30/16 | 344,000 | 381,534 |
| Texas Competitive Electric Holdings Company LLC, | ||||
| Gtd Sr Note, Series A (Z) | 10.250 | 11/01/15 | 1,000,000 | 782,500 |
| TXU Corp., | ||||
| Sec Bond (Z) | 7.460 | 01/01/15 | 294,351 | 208,224 |
| Waterford 3 Funding Corp., | ||||
| Sec Bond (Z) | 8.090 | 01/02/17 | 470,896 | 476,561 |
| 12 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Utilities (continued) | ||||
| Gas Utilities 0.33 % | ||||
| DCP Midstream LLC, | ||||
| Sr Note (S)(Z) | 9.750% | 03/15/19 | $405,000 | $516,694 |
| Independent Power Producers & Energy Traders 0.67 % | ||||
| AES Eastern Energy LP, | ||||
| Sr Pass Thru Ctf, Series 1999-A (Z) | 9.000 | 01/02/17 | 884,136 | 901,819 |
| Listrindo Capital BV (S) | 9.250 | 01/29/15 | 155,000 | 159,264 |
| Multi-Utilities 1.64 % | ||||
| DTE Energy Company, | ||||
| Sr Note (Z) | 7.625 | 05/15/14 | 910,000 | 1,049,899 |
| Sempra Energy, | ||||
| Sr Bond (Z) | 8.900 | 11/15/13 | 345,000 | 410,193 |
| Sr Note (Z) | 6.500 | 06/01/16 | 415,000 | 463,668 |
| Teco Finance, Inc., | ||||
| Gtd Sr Note (Z) | 7.000 | 05/01/12 | 337,000 | 365,338 |
| Gtd Sr Note (Z) | 6.572 | 11/01/17 | 298,000 | 318,688 |
| Water Utilities 0.82 % | ||||
| Indiantown Cogeneration LP, | ||||
| 1st Mtg Note Series A-9 (Z) | 9.260 | 12/15/10 | 110,703 | 112,934 |
| Midwest Generation LLC, | ||||
| Note Series B (Z) | 8.560 | 01/02/16 | 300,831 | 303,840 |
| Oncor Electric Delivery Co., | ||||
| Sr Sec Note (Z) | 6.375 | 05/01/12 | 820,000 | 892,840 |
| Shares | Value | |||
| Preferred Stocks 2.90% | $4,612,292 | |||
| (Cost $5,106,106) | ||||
| Consumer Staples 0.55% | 875,391 | |||
| Food & Staples Retailing 0.55 % | ||||
| Ocean Spray Cranberries, Inc., 6.250%, Series A | 12,500 | 875,391 | ||
| Financials 1.75% | 2,776,901 | |||
| Diversified Financial Services 0.41 % | ||||
| Bank of America Corp., 8.625% (Z) | 26,575 | 652,151 | ||
| Real Estate Investment Trusts 1.34 % | ||||
| Apartment Investment & Management Company, 8.000%, Series T (Z) | 55,000 | 1,234,750 | ||
| Public Storage, Inc., 6.500%, Depositary Shares, Series W (Z) | 40,000 | 890,000 | ||
| Telecommunication Services 0.60% | 960,000 | |||
| Wireless Telecommunication Services 0.60 % | ||||
| Telephone & Data Systems, Inc., 7.600%, Series A (Z) | 40,000 | 960,000 | ||
| 13 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Term Loans 0.58% | $923,089 | |||
| (Cost $1,043,358) | ||||
| Consumer Discretionary 0.58% | 923,089 | |||
| Hotels, Restaurants & Leisure 0.58 % | ||||
| East Valley Tourist Development Authority | 12.000% | 08/06/12 | $507,883 | $380,912 |
| Greektown Holdings LLC, | ||||
| Term Loan (T) | — | 09/30/10 | 51,394 | 51,394 |
| Term Loan | 14.500 | 09/30/10 | 488,341 | 490,783 |
| U.S. Government & Agency Obligations 35.09% | $55,835,584 | |||
| (Cost $54,972,967) | ||||
| U.S. Government 15.60% | 24,821,915 | |||
| U.S. Treasury Bonds | ||||
| Bond | 4.500% | 08/15/39 | 2,530,000 | 2,526,838 |
| U.S. Treasury Notes | ||||
| Note | 3.375 | 11/15/19 | 6,580,000 | 6,453,532 |
| Note | 2.625 | 12/31/14 | 640,000 | 649,350 |
| Note | 2.375 | 08/31/14 | 845,000 | 852,988 |
| Note | 2.375 | 10/31/14 | 2,645,000 | 2,661,320 |
| Note | 2.125 | 11/30/14 | 11,755,000 | 11,677,887 |
| U.S. Government Agency 19.49% | 31,013,669 | |||
| Federal Home Loan Mortgage Corp., | ||||
| 30 Yr Pass Thru Ctf | 4.500 | 03/01/39 | 4,239,938 | 4,285,982 |
| Federal National Mortgage Association, | ||||
| 15 Yr Pass Thru Ctf | 4.000 | 06/01/24 | 3,619,235 | 3,687,661 |
| 15 Yr Pass Thru Ctf | 4.000 | 06/01/24 | 1,922,871 | 1,959,225 |
| 15 Yr Pass Thru Ctf | 4.000 | 06/01/24 | 3,570,926 | 3,638,438 |
| 30 Yr Pass Thru Ctf | 5.500 | 02/01/36 | 3,156,826 | 3,352,894 |
| 30 Yr Pass Thru Ctf | 5.500 | 06/01/37 | 1,732,953 | 1,837,878 |
| 30 Yr Pass Thru Ctf | 5.500 | 06/01/38 | 3,489,757 | 3,701,051 |
| 30 Yr Pass Thru Ctf | 4.500 | 03/01/38 | 2,664,780 | 2,694,446 |
| 30 Yr Pass Thru Ctf | 4.500 | 04/01/39 | 946,352 | 956,888 |
| Government National Mortgage Association, | ||||
| 30 Yr Pass Thru Ctf | 5.500 | 11/15/38 | 904,902 | 959,939 |
| 30 Yr Pass Thru Ctf | 4.500 | 03/15/39 | 3,880,006 | 3,939,267 |
| Collateralized Mortgage Obligations 10.43% | $16,603,728 | |||
| (Cost $23,508,301) | ||||
| Collateralized Mortgage Obligations 10.43% | 16,603,728 | |||
| American Home Mortgage Assets, | ||||
| Series 2006-6, Class XP IO | 2.741 | 12/25/46 | 12,095,774 | 529,190 |
| Series 2007-5, Class XP IO | 3.131 | 06/25/47 | 8,513,595 | 468,248 |
| American Home Mortgage Investment Trust, | ||||
| Series 2007-1, Class GIOP IO | 2.078 | 05/25/47 | 7,508,334 | 445,807 |
| American Tower Trust, | ||||
| Series 2007-1A, Class D (S) | 5.957 | 04/15/37 | 865,000 | 897,438 |
| Banc of America Funding Corp., | ||||
| Series 2006-B, Class 6A1 (P) | 5.827 | 03/20/36 | 772,201 | 536,060 |
| Bear Stearns Adjustable Rate Mortgage Trust, | ||||
| Series 2005-1 Class B2 (P) | 4.280 | 03/25/35 | 800,707 | 88,101 |
| 14 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Collateralized Mortgage Obligations (continued) | ||||
| Bear Stearns Alt-A Trust, | ||||
| Series 2006-4 Class 3B1 (P) | 5.940% | 07/25/36 | $1,650,460 | $2,773 |
| Series 2005-3, Class B2 (P) | 4.231 | 04/25/35 | 550,160 | 29,539 |
| Bear Stearns Commercial Mortgage Securities, Inc., | ||||
| Series 2006-PW14, Class D (S) | 5.412 | 12/11/38 | 655,000 | 217,190 |
| Citigroup Mortgage Loan Trust, Inc., | ||||
| Series 2005-10, Class 1A5A (P) | 5.718 | 12/25/35 | 602,938 | 408,735 |
| Series 2005-5, Class 2A3 | 5.000 | 08/25/35 | 338,339 | 323,431 |
| Citigroup/Deutsche Bank Commercial Mortgage Trust, | ||||
| Series 2005-CD1, Class C (P) | 5.224 | 07/15/44 | 295,000 | 166,719 |
| ContiMortgage Home Equity Loan Trust, | ||||
| Series 1995-2 Class A-5 | 8.100 | 08/15/25 | 42,668 | 39,222 |
| Countrywide Alternative Loan Trust, | ||||
| Series 2006-OA12, Class X IO | 3.081 | 09/20/46 | 15,298,730 | 621,511 |
| DB Master Finance LLC, | ||||
| Series 2006-1, Class-M1 (S) | 8.285 | 06/20/31 | 340,000 | 290,707 |
| First Horizon Alternative Mortgage Securities, | ||||
| Series 2004-AA5, Class B1 | 2.636 | 12/25/34 | 409,956 | 32,294 |
| GSR Mortgage Loan Trust, | ||||
| Series 2006-4F Class 6A1 | 6.500 | 05/25/36 | 3,086,153 | 2,619,364 |
| Series 2004-9, Class B1 (P) | 3.904 | 08/25/34 | 807,102 | 314,640 |
| Harborview Mortgage Loan Trust, | ||||
| Series 2005-11, Class X IO | 2.721 | 08/19/45 | 3,883,409 | 160,385 |
| Series 2005-8, Class 1X IO | 2.554 | 09/19/35 | 6,394,277 | 242,783 |
| Series 2007-3, Class ES IO | 0.350 | 05/19/47 | 17,805,462 | 144,669 |
| Series 2007-4, Class ES IO | 0.350 | 07/19/47 | 18,974,643 | 154,169 |
| Series 2007-6, Class ES IO (S) | 0.342 | 08/19/37 | 13,973,291 | 113,533 |
| Harborview Corp., | ||||
| Series 2006-9A, Class N2, NIM (S) | 8.350 | 11/19/36 | 323,137 | 0 |
| IndyMac Index Mortgage Loan Trust, | ||||
| Series 2004-AR13, Class B1 | 5.296 | 01/25/35 | 327,775 | 50,303 |
| Series 2005-AR18, Class 1X IO | 2.555 | 10/25/36 | 12,909,670 | 419,564 |
| Series 2005-AR18, Class 2X IO | 2.294 | 10/25/36 | 12,594,696 | 425,701 |
| Series 2005-AR5, Class B1 (P) | 4.314 | 05/25/35 | 435,117 | 15,185 |
| JPMorgan Chase Commercial Mortgage Securities Corp., | ||||
| Series 2005-LDP4, Class B | 5.129 | 10/15/42 | 2,035,000 | 1,095,502 |
| JPMorgan Mortgage Trust, | ||||
| Series 2005-S3, Class 2A2 | 5.500 | 01/25/21 | 533,629 | 506,197 |
| Merrill Lynch Mortgage Investors Trust, | ||||
| Series 2006-AF1 Class MF1 (P) | 6.246 | 08/25/36 | 1,180,857 | 80,989 |
| MLCC Mortgage Investors, Inc., | ||||
| Series 2007-3, Class M1 (P) | 5.917 | 09/25/37 | 419,859 | 191,478 |
| Series 2007-3, Class M2 (P) | 5.917 | 09/25/37 | 154,949 | 63,458 |
| Series 2007-3, Class M3 (P) | 5.917 | 09/25/37 | 104,966 | 36,047 |
| Morgan Stanley Capital I, | ||||
| Series 2005-HQ7, Class A4 | 5.207 | 11/14/42 | 840,000 | 857,447 |
| Series 2006-IQ12, Class E | 5.538 | 12/15/43 | 640,000 | 148,541 |
| Provident Funding Mortgage Loan Trust, | ||||
| Series 2005-1, Class B1 (P) | 4.055 | 05/25/35 | 406,781 | 114,086 |
| Residential Accredit Loans, Inc., | ||||
| Series 2005-QA12, Class NB5 (P) | 5.942 | 12/25/35 | 2,686,625 | 1,635,313 |
| Washington Mutual, Inc., | ||||
| Series 2005-6, Class 1CB | 6.500 | 08/25/35 | 377,524 | 275,121 |
| Series 2007-OA5, Class 1XPP IO | 0.740 | 06/25/47 | 38,920,093 | 425,689 |
| 15 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
| Maturity | Par value | |||
| Rate | date | Value | ||
| Collateralized Mortgage Obligations (continued) | ||||
| Series 2007-OA6, Class 1XPP IO | 0.804% | 07/25/47 | $22,713,186 | $212,936 |
| Series 2005-AR4 Class B1 (P) | 4.623 | 04/25/35 | 1,508,511 | 410,299 |
| Series 2007-0A5, Class 2XPP IO | 0.999 | 06/25/47 | 45,335,096 | 793,364 |
| Asset Backed Securities 0.98% | $1,563,684 | |||
| (Cost $1,759,948) | ||||
| Asset Backed Securities 0.98% | 1,563,684 | |||
| Dominos Pizza Master Issuer LLC, | ||||
| Series 2007-1, Class M1 (S) | 7.629% | 04/25/37 | 1,000,000 | 780,000 |
| Hertz Vehicle Financing LLC, | ||||
| Series 2009-2A, Class A2 (S) | 5.290 | 03/25/16 | 760,000 | 783,684 |
| Maturity | Par value | |||
| Yield* | date | Value | ||
| Short-Term Investments 0.94% | $1,500,000 | |||
| (Cost $1,500,000) | ||||
| U.S. Government Agency 0.94% | 1,500,000 | |||
| Federal Home Loan Bank, | ||||
| Discount Note | 0.030% | 02/01/10 | 1,500,000 | 1,500,000 |
| Total investments (Cost $237,452,163) 148.05% | $235,623,093 | |||
| Other assets and liabilities, net (48.05%) | ($76,472,218) | |||
| Total net assets 100.00% | $159,150,875 | |||
The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common shareholders.
| BKNT | Bank Note |
| GMTN | Global Medium Term Note |
| Gtd | Guaranteed |
| IO | Interest Only Security - Interest Tranche of Stripped Mortgage Pool |
| MTN | Medium-Term Note |
| NIM | Net Interest Margin |
| PIK | Paid In Kind |
(H) Defaulted Security. Currently, the issuer is in default with respect to interest payments.
(P) Variable rate obligation. The coupon rate shown represents the rate at period end.
(S) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $47,341,298 or 29.78% of the Fund's net assets as of January 31, 2010.
(T) All or a portion of this security represents an unsettled term loan commitment. Rate will be determined at time of settlement.
(Z) All or a portion of this security is segregated as collateral pursuant to the Committed Facility Agreement. Total collateral value at January 31, 2010 was $134,919,805.
* Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.
| 16 |
John Hancock Income Securities Trust
Securities owned by the Fund on
January 31, 2010 (Unaudited)
† At January 31, 2010, the aggregate cost of investment securities for federal income tax purposes was $238,051,699. Net unrealized depreciation aggregated $2,428,606, of which $15,428,245 related to appreciated investment securities and $17,856,851 related to depreciated investment securities.
| 17 |
Notes to the Schedule of Investments (Unaudited)
Security valuation
Investments are stated at value as of the close of regular trading on the New York Stock exchange (NYSE), normally at 4:00 p.m., Eastern Time. Equity securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated price if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied quotes and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent quotation service Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Equity and debt obligations, for which there are no prices available from an independent pricing service, are valued based on bid quotations or evaluated prices, as applicable, obtained from broker-dealers or fair valued as described below. Certain short-term debt instruments are valued at amortized cost.
Other portfolio assets and securities where market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s Pricing Committee in accordance with procedures adopted by the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.
Fair value measurements
The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:
• Level 1 — Exchange-traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights and futures.
• Level 2 — Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed-income securities. Also, over-the-counter derivative contracts, including swaps, foreign forward currency contracts, and certain options use these techniques.
• Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Fund’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may include the use of the brokers’ own judgments about the assumptions that market participants would use.
| 18 |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of January 31, 2010, by major security category or security type:
| Level 2 | Level 3 | |||
| Total Market | Level 1 | Significant | Significant | |
| Value at | Quoted | Observable | Unobservable | |
| Investments In Securities | 01/31/10 | Price | Inputs | Inputs |
| Asset Backed Securities | $1,563,684 | — | $783,684 | $780,000 |
| Collateralized Mortgage Obligations | 16,603,728 | — | 11,446,179 | 5,157,549 |
| Corporate Bonds | 154,584,716 | — | 153,547,116 | 1,037,600 |
| Preferred Stocks | 4,612,292 | $3,736,901 | 875,391 | — |
| Term Loans | 923,089 | — | 923,089 | — |
| U.S. Government & Agency Obligations | 55,835,584 | — | 55,835,584 | — |
| Short-Term Investments | 1,500,000 | — | 1,500,000 | — |
| Total investments in Securities | $235,623,093 | $3,736,901 | $224,911,043 | $6,975,149 |
| Other Financial Instruments | (1,306,994) | (11,664) | (1,295,330) | — |
| Total | $234,316,099 | $3,725,237 | $223,615,713 | $6,975,149 |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Asset | Collateralized | |||
| Backed | Mortgage | Corporate | ||
| Securities | Obligations | Bonds | Totals | |
| Balance as of 10-31-09 | $750,000 | $6,578,122 | $884,400 | $8,212,522 |
| Accrued discounts/premiums | - | 28 | 123 | 151 |
| Realized gain (loss) | - | 872,606 | - | 872,606 |
| Change in unrealized gain (loss) | 30,000 | (1,162,818) | 153,077 | (979,741) |
| Net purchases (sales) | - | (1,130,389) | - | (1,130,389) |
| Net transfers in and/out of | ||||
| Level 3 | - | - | - | - |
| Balance as of 01-31-10 | $780,000 | $5,157,549 | $1,037,600 | $6,975,149 |
Financial Instruments
Futures
The Fund may purchase and sell financial futures contracts, including index futures and options on these contracts. A future is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. For more information on futures, please refer to the Fund’s prospectus, semiannual and annual reports.
During the period ended January 31, 2010, the Fund used futures to mangage duration of the portfolio. The following summarizes the Fund’s use of futures contracts and the contracts held as of January 31, 2010:
| Unrealized | |||||
| Number of | Expiration | Notional | Appreciation | ||
| Open Contracts | Contracts | Position | Date | Value | (Depreciation) |
| U.S. Treasury 30-Year Bond Futures | 10 | Long | Mar 2010 | $1,188,125 | $6,562 |
| U.S. Treasury 5-Year Note Futures | 27 | Short | Mar 2010 | 3,144,445 | (7,805) |
| U.S. Treasury 10-Year Note Futures | 23 | Short | Mar 2010 | 2,717,594 | (10,421) |
| Total | $7,050,164 | ($11,664) |
| 19 |
Futures contracts (USD notional amounts) ranged from approximately $1.2 million to $7.1 million for the three-month period ended January 31, 2010.
Interest Rate Swap Agreements
Interest rate swaps represent an agreement between two counterparties to exchange cash flows based on the difference in the two interest rates, applied to the notional principal amount for a specified period. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The Funds settle accrued net receivable or payable under the swap contracts on a periodic basis.For more information on interest rate swaps, please refer to the Funds’ prospectus, semiannual and annual reports.
The following summarizes the interest rate swap contracts held as of January 31, 2010. The Fund entered into interest rate swaps to mangage duration of the portfolio.
| USD | Payments | Payments | |||||
| Notional | Made by | Received | Effective | Maturity | Unrealized | Market | |
| Counterparty | Amount | Fund | by Fund | Date | Date | Depreciation | Value |
| Bank of | 3-month | ||||||
| America | $29,000,000 | 4.6875% | LIBOR (a) | 9-14-2007 | 9-14-2010 | ($1,295,330) | ($1,295,330) |
| (a) At January 31, 2010, the 3-month LIBOR rate was 0.24906%. | |||||||
Interest rate swap notional amount at January 31, 2010 is representative of the activity during the period.
Fair value of derivative instruments by risk category
The table below summarizes the fair values of derivatives held by the Fund at January 31, 2010, by risk category:
| Financial | Asset | Liability | |
| Instruments | Derivatives | Derivatives | |
| Location | Fair Value | Fair Value | |
| Interest rate contracts | Futures† | - | ($11,664) |
| Interest rate contracts | Interest rate | - | ($1,295,330) |
| swaps | |||
| Total | - | ($1,306,994) | |
† Reflects cumulative appreciation/depreciation on futures.
| 20 |
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
| SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Income Securities Trust
| By: | /s/ Keith F. Hartstein |
| ------------------------------ | |
| Keith F. Hartstein | |
| President and Chief Executive Officer | |
| Date: | March 22, 2010 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Keith F. Hartstein |
| ------------------------------- | |
| Keith F. Hartstein | |
| President and Chief Executive Officer | |
| Date: | March 22, 2010 |
| By: | /s/ Charles A. Rizzo |
| ------------------------------- | |
| Charles A. Rizzo | |
| Chief Financial Officer | |
| Date: | March 22, 2010 |