HPS John Hancock Preferred Income Fund III

601 Congress Street
Boston, Massachusetts 02210-2805

January 27, 2012

Securities and Exchange Commission
Washington, DC 20549

 

Dear Sir/Madam:

On behalf of the Registrants, enclosed for filing, pursuant to Rule 17g-1 under the Investment Company Act of 1940, as amended (the “1940 Act”), are the following documents:

1.	A copy of the joint insured fidelity bond no. 81906724 issued by Chubb Group of Insurance Companies.
2.	A copy of Endorsement / Rider No. 1 to the Registrants’ joint bond no. 81906724 regarding compliance with applicable trade sanction laws.
3.	A copy of Endorsement No. 2 to the Registrants’ joint bond no. 81906724 amending Section 13 relating to terminations, non-renewals and notices.
4.	A copy of Endorsement No. 3 to the Registrants’ joint bond no. 81906724 regarding unauthorized signatures.
5.	A copy of Endorsement No. 4 to the Registrants’ joint bond no. 81906724 regarding automated telephone transactions.
6.	A copy of Endorsement No. 5 to the Registrants’ joint bond no . 81906724 regarding telefacsimile instructions.
7.	A copy of Endorsement No. 6 to the Registrants’ joint bond no. 81906724 regarding stop payment orders.

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601 Congress Street
Boston, Massachusetts 02210-2805

8.	A copy of Endorsement No. 7 to the Registrants’ joint bond no. 81906724 regarding extended computer systems’ electronic data, media, instructions, communications and transmissions.
9.	A copy of Endorsement / Rider No. 8 to the Registrants’ joint bond no. 81906724 regarding automatic increase in limits.
10.	A copy of Endorsement / Rider No. 9 to the Registrants’ joint bond no. 81906724 regarding definition of employee.
11.	A copy of Endorsement / Rider No. 10 to the Registrants’ joint bond no. 81906724 regarding deleting valuation, other property and amending change or modification.
12.	A copy of Endorsement No. 11 to the Registrant’s joint bond no. 81906724 regarding the name of the Assured.
13.	A copy of Endorsement / Rider No. 12 to the Registrants’ joint bond no. 81906724 regarding amending the name of the Assured relating to new funds.
14.	A copy of Endorsement / Rider No. 13 to the Registrants’ joint bond no. 81906724 regarding amending discovery and notice.
15.	A copy of the excess joint insured fidelity bond no. 87142111B issued by ICI Mutual Insurance Company.
16.	A copy of Rider No. 1 to the Registrant’s joint bond no. 87142111B regarding requirements of the Terrorism Risk Insurance Act of 2002, as amended (“the Act”).
17.	A copy of the resolutions of the Board of Trustees approving the bonds.
18.	A copy of the agreement among the investment companies entered into pursuant to paragraph (f) of Regulation 17g-1.
19.	A statement showing the single bond amount (if the investment company had not been named as an insured under this joint insured bond).
20.	A statement showing that premiums have been paid for the period December 31, 2011 to
	December 31, 2012.

Sincerely,

/s/ Betsy Anne Seel
Betsy Anne Seel
Assistant Secretary

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If “Not Covered” is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE and any other reference shall be deemed to be deleted. There shall be no deductible applicable to any loss under INSURING CLAUSE 1. sustained by any Investment Company.

 

 

IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not be valid unless also signed by an authorized representative of the Company.

 

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Insuring Clauses
(continued)

 

 

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Insuring Clauses
(continued)

 

 

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General Agreements
(continued)

 

 

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Conditions And Limitations

General Exclusions -Applicable to All Insuring Clauses (continued)

h.	loss resulting from dishonest acts by any member of the Board of Directors
	or	Board of Trustees of the ASSURED who is not an Employee , acting
	alone	or in collusion with others;
i.	loss, or that part of any loss, resulting solely from any violation by the
	ASSURED	or by any Employee :
	(1)	of any law regulating:
		a.	the issuance, purchase or sale of securities,
		b.	securities transactions on security or commodity exchanges or the over the counter market,
		c.	investment companies,
		d.	investment advisors, or
	(2)	of any rule or regulation made pursuant to any such law; or
j.	loss of confidential information, material or data;
k.	loss resulting from voice requests or instructions received over the
	telephone,	provided however, this Section 2.k. shall not apply to INSURING
	CLAUSE	7. or 9.

Specific Exclusions -Applicable To All Insuring Clauses Except Insuring Clause 1.

3.	This Bond does not directly or indirectly cover:
	a.	loss caused by an Employee , provided, however, this Section 3.a. shall not
		apply	to loss covered under INSURING CLAUSE 2. or 3. which results
		directly	from misplacement, mysterious unexplainable disappearance, or
		damage	or destruction of Property ;
	b.	loss through the surrender of property away from premises of the ASSURED
		as	a result of a threat:
		(1)	to do bodily harm to any natural person, except loss of Property in transit in the custody of any person acting as messenger of the ASSURED, provided that when such transit was initiated there was no knowledge by the ASSURED of any such threat, and provided further that this Section 3.b. shall not apply to INSURING CLAUSE 7., or
		(2)	to do damage to the premises or Property of the ASSURED;
	c.	loss resulting from payments made or withdrawals from any account
		involving	erroneous credits to such account;
	d.	loss involving Items of Deposit which are not finally paid for any reason
		provided	however, that this Section 3.d. shall not apply to INSURING
		CLAUSE	10.;
	e.	loss of property while in the mail;

 

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Conditions And Limitations

Specific Exclusions -Applicable To All Insuring Clauses Except Insuring Clause 1.

(continued)

f.	loss resulting from the failure for any reason of a financial or depository institution, its receiver or other liquidator to pay or deliver funds or other Property to the ASSURED provided further that this Section 3.f. shall not apply to loss of Property resulting directly from robbery, burglary, misplacement, mysterious unexplainable disappearance, damage, destruction or removal from the possession, custody or control of the ASSURED.
g.	loss of Property while in the custody of a Transportation Company , provided however, that this Section 3.g. shall not apply to INSURING
	CLAUSE 3.;
h.	loss resulting from entries or changes made by a natural person with authorized access to a Computer System who acts in good faith on instructions, unless such instructions are given to that person by a software contractor or its partner, officer, or employee authorized by the ASSURED to design, develop, prepare, supply, service, write or implement programs for the ASSURED's Computer System ; or
i.	loss resulting directly or indirectly from the input of data into a Computer System terminal, either on the premises of the customer of the ASSURED or under the control of such a customer, by a customer or other person who had authorized access to the customer's authentication mechanism.

 

 

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Conditions And Limitations

Limit Of Liability/Non-Reduction And Non-Accumulation Of Liability (continued)

d. any one casualty or event other than those specified in a., b., or c. above, shall be deemed to be one loss and shall be limited to the applicable LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of the total amount of such loss or losses and shall not be cumulative in amounts from year to year or from period to period.

All acts, as specified in c. above, of any one person which

i.	directly or indirectly aid in any way wrongful acts of any other person or persons, or
ii.	permit the continuation of wrongful acts of any other person or persons

whether such acts are committed with or without the knowledge of the wrongful acts of the person so aided, and whether such acts are committed with or without the intent to aid such other person, shall be deemed to be one loss with the wrongful acts of all persons so aided.

 

 

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Conditions And
Limitations
(continued)

 

 

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a.	shall immediately remove such Employee from a position that would enable such Employee to cause the ASSURED to suffer a loss covered by this Bond; and
b.	within forty-eight (48) hours of learning that an Employee has committed any dishonest act, shall notify the COMPANY, of such action and provide full particulars of such dishonest act.

The COMPANY may terminate coverage as respects any Employee sixty (60) days after written notice is received by each ASSURED Investment Company and the Securities and Exchange Commission, Washington, D.C. of its desire to terminate this Bond as to such Employee .

 

 

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HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS

It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other similar laws or regulations prohibit the coverage provided by this insurance.

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

All other terms, conditions and limitations of this Bond shall remain unchanged.

Authorized Representative

14-02-9228 (02/2010)

Page 1

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FEDERAL INSURANCE COMPANY

 

NAME OF ASSURED: JOHN HANCOCK FUNDS; JOHN HANCOCK FUNDS II; JOHN

HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

TERMINATION-NONRENEWAL-NOTICE ENDORSEMENT

It is agreed that this Bond is amended as follows:

1.	By adding to Section 13., Termination, the following:
	"Termination	By The Company
	Bonds	In Effect For More Than Sixty (60) Days
	If	this Bond has been in effect for more than sixty (60) days, or, if this Bond is a renewal, the COMPANY
	may	terminate by providing written notice of cancellation at least sixty (60) days before the effective date
	of	termination for at least one of the following reasons:
	1.	Nonpayment of premium;
	2.	Discovery of fraud or material misrepresentation in obtaining this Bond or in the presentation of a claim thereunder;
	3.	Discovery of willful or reckless acts or omissions or violation of any provision of this Bond on the part of the ASSURED which substantially and materially increases any hazard insured against, and which occurred subsequent to the inception of the current BOND PERIOD;
	4.	Conviction of the ASSURED of a crime arising out of acts increasing the hazard insured against;
	5.	Material change in the risk which increases the risk of loss after insurance coverage has been issued or renewed, except to the extent that the COMPANY should reasonably have foreseen the change, or contemplated the risk when the contract was written;
	6.	Determination by the Commissioner that the continuation of the Bond would jeopardize a COMPANY'S solvency or would place the COMPANY in violation of the insurance laws of any state;
	7.	Determination by the Commissioner that continuation of the present premium volume of the COMPANY would jeopardize the COMPANY'S policyholders, creditors or the public;
	8.	Such other reasons that are approved by the Commissioner;
	9.	Determination by the Commissioner that the COMPANY no longer has adequate reinsurance to meet the ASSUREDS needs;
	10.	Substantial breaches of contractual duties, conditions or warranties; or
	11.	Unfavorable underwriting facts, specific to the ASSURED, existing that were not present at the inception of the Bond.

 

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Bonds In Effect Sixty (60) Days Or Less

If this Bond has been in effect for sixty (60) days or less, and it is not a renewal Bond, the COMPANY may terminate for any reason by providing written notice of termination at least sixty (60) days before the effective date of termination.

Notice Of Termination

Notice of termination under this Section shall be mailed or delivered, by certified mail, return receipt provided by the United States Postal Service, to the ASSURED and to the authorized agent or broker, if any, at least sixty (60) days prior to the effective date of cancellation at the address shown on the DECLARATIONS of this Bond.

If this Bond is cancelled for nonpayment of premium, the COMPANY will mail or deliver, by certified mail, return receipt provided by the United States Postal Service, a written notice at least thirty (30) days before the effective date of cancellation. The cancellation notice shall contain information regarding the amount of premium due and the due date, and shall state the effect of nonpayment by the due date. Cancellation shall not be effective if payment of the amount due is made prior to the effective date of cancellation.

All notice of cancellation shall state the reason(s) for cancellation.

There is no liability on the part of, and no cause of action of any nature shall arise against, the COMPANY, its authorized representatives, its employees, or any firm, person or corporation furnishing to the COMPANY, information relating to the reasons for cancellation or nonrenewal, for any statement made by them in complying or enabling the COMPANY to comply with this Section, for the provision of information pertaining thereto, or for statements made or evidence submitted at any hearings conducted in connection therewith, if such information was provided in good faith and without malice.

Notice Of Nonrenewal

If the COMPANY elects not to renew this Bond, the COMPANY shall mail or deliver written notice, by certified mail, return receipt, provided by the United States Postal Service, to the ASSURED, at his last known address, at least sixty (60) days before the expiration date or before the anniversary date, if this Bond has been written for a term of more than one (1) year. Such notice shall also be mailed to the ASSURED'S agent or broker, if any.

Such notice shall contain all of the following:

a.	Bond Number:
b.	Date of Notice;
c.	Reason for Cancellation;
d.	Expiration Date of the Bond;
e.	Effective Date and Hour of Cancellation.

Notice of nonrenewal shall not be required if the COMPANY or a COMPANY within the same insurance group has offered to issue a renewal Bond, the ASSURED has obtained replacement coverage or has agreed in writing to obtain replacement coverage, the ASSURED has requested or agreed to nonrenewal, or the Bond is expressly designated as nonrenewable.

 

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	Return Premium Calculations
	Any unearned premiums which have been paid by the ASSURED shall be refunded to the ASSURED on a pro rata basis if terminated by the COMPANY or the ASSURED. The unearned premiums shall be refunded to the ASSURED within forty-five (45) days of receipt of the request for cancellation or the effective date of cancellation, whichever is later.
	Conditional Renewal
	If the COMPANY offers or purports to renew the Bond, but on less favorable terms or at higher rates, the new terms or higher premiums may take effect on the renewal date, if the COMPANY mails or delivers by certified mail, return receipt provided by the United States Postal Service, to the ASSURED, notice of the new terms or premiums at least sixty (60) days prior to the renewal date. If the COMPANY notifies the ASSURED within sixty (60) days prior to the renewal date, the new terms or premiums do not take effect until sixty (60) days after the notice is mailed or delivered, in which case, the ASSURED may elect to cancel the renewal Bond within the sixty (60) day period. If the COMPANY does not notify the ASSURED of the new terms or premiums, the COMPANY shall continue the Bond at the expiring terms and premiums until notice is given or until the effective date of replacement coverage is obtained by the ASSURED, whichever occurs first.”
2.	It is further understood and agreed that for the purposes of Section 13., Termination, any occurrence listed in this Section shall be considered to be a request by the ASSURED to immediately terminate this Bond.

This Endorsement applies to loss discovered after 12:01 a.m. on December 31, 2011.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

 

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FEDERAL INSURANCE COMPANY

Endorsement No.: 3

Bond Number: 81906724

NAME OF ASSURED: JOHN HANCOCK FUNDS; JOHN HANCOCK FUNDS II; JOHN

HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

UNAUTHORIZED SIGNATURE ENDORSEMENT

It is agreed that this Bond is amended as follows:

1.	By adding the following INSURING CLAUSE:
	12.	Unauthorized Signature
		Loss	resulting directly from the ASSURED having accepted, paid or cashed any check or
		Withdrawal	Order made or drawn on or against the account of the ASSURED’S customer which
		bears	the signature or endorsement of one other than a person whose name and signature is on
		file	with the ASSURED as a signatory on such account.
		It	shall be a condition precedent to the ASSURED'S right of recovery under this INSURING
		CLAUSE	that the ASSURED shall have on file signatures of all the persons who are signatories
		on	such account.
2.	By adding to Section 1., Definitions, the following:
	aa.	Instruction means a written order to the issuer of an Uncertificated Security requesting that the
		transfer,	pledge or release from pledge of the specified Uncertificated Security be registered.
	bb.	Uncertificated Security means a share, participation or other interest in property of or an
		enterprise	of the issuer or an obligation of the issuer, which is:
		(1)	not represented by an instrument and the transfer of which is registered on books maintained for that purpose by or on behalf of the issuer, and
		(2)	of a type commonly dealt in on securities exchanges or markets, and
		(3)	either one of a class or series or by its terms divisible into a class or series of shares, participations, interests or obligations.

 

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cc.	Withdrawal Order means a non-negotiable instrument, other than an Instruction , signed by a customer of the ASSURED authorizing the ASSURED to debit the customer’s account in the amount of funds stated therein.

This Endorsement applies to loss discovered after 12:01 a.m. on December 31, 2011.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

Date: January 6, 2012

 

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FEDERAL INSURANCE COMPANY

Endorsement No.: 4

Bond Number: 81906724

NAME OF ASSURED: JOHN HANCOCK FUNDS; JOHN HANCOCK FUNDS II; JOHN

HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

AUTOMATED TELEPHONE TRANSACTION ENDORSEMENT

It is agreed that this Bond is amended as follows:

1.	By adding the following INSURING CLAUSE:
	13.	Automated Telephone System Transaction
		Loss	resulting directly from the ASSURED having transferred funds on the faith of any
		Automated	Phone System (APS) Transaction , where the request for such APS
		Transaction	is unauthorized or fraudulent and is made with the intent to deceive. In order for
		coverage	to apply under this INSURING CLAUSE the ASSURED shall maintain and follow all
		APS	Designated Procedures . A single failure of the ASSURED to maintain and follow a
		particular	APS Designated Procedure in a particular APS Transaction will not preclude
		coverage	under this INSURING CLAUSE.
2.	By adding to Section 1., Definitions, the following:
	dd.	APS Designated Procedures means all of the following procedures:
		(1)	No APS Transaction shall be executed unless the shareholder or unitholder to whose account such an APS Transaction relates has previously elected to APS
			Transactions . (Election in Application)
		(2)	All APS Transactions shall be logged or otherwise recorded and the records shall be retained for at least six (6) months. (Logging)
			Information contained in the records shall be capable of being retrieved and produced within a reasonable time after retrieval of specific information is requested, at a success rate of no less than 85 percent.
		(3)	The caller in any request for an APS Transaction , before executing that APS Transaction must enter a personal identification number (PIN), social security number and account number. (Identity Test)
			If the caller fails to enter a correct PIN within three (3) attempts, the caller must not be allowed additional attempts during the same telephone call to enter the PIN. The caller may either be instructed to redial a customer service representative or may be immediately connected to such a representative. (Limited attempts to Enter PIN)

 

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(4)	A written confirmation of any APS Transaction or change of address shall be mailed to the shareholder or unitholder to whose account such transaction relates, at the record address, by the end of the insured's next regular processing cycle, but in no event later than five (5) business days following such APS Transaction . (Written Confirmation)
(5)	Access to the equipment which permits the entity receiving the APS Transaction request to process and effect the transaction shall be limited in the following manner:

(Access to APS Equipment)

ee.	APS Election means any election concerning various account features available to the shareholder or unitholder which is made through the Automated Phone System by means of information transmitted by an individual caller through use of a Automated Phone System .
	These features include account statements, auto exchange, auto asset builder, automatic withdrawal, dividend/capital gain options, dividend sweep, telephone balance consent and change of address.
ff.	APS Exchange means any exchange of shares or units in a registered account of one fund into shares or units in an account with the same tax identification number and same ownership-type code of another fund in the same complex pursuant to exchange privileges of the two funds, which exchange is requested through the Automated Phone System by means of information transmitted by an individual caller through use of an Automated Phone System .
gg.	APS Purchase means any purchase of shares or units issued by an Investment Company which is requested through an Automated Phone System .
hh.	APS Redemption means any redemption of shares or units issued by an Investment Company which it requested through the telephone by means of information transmitted by an individual caller through use of a Automated Phone System .
ii.	APS Transaction means any APS Purchase, APS Redemption, APS Election or APS Exchange .
jj.	Automated Phone System means an automated system which receives and converts to executable instructions transmissions through the Automated Phone System through use of a touch-tone keypad or other tone system; and always excluding transmissions from a computer system or part thereof.

3.	By adding the following Section after Section 4., Specific Exclusions-Applicable To All Insuring Clauses Except 1., 4., 5.:

Section 4.A.. Specific Exclusion-Applicable to Insuring Clause 13

This Bond does not directly or indirectly cover under Insuring Clause 13:

Loss resulting from:

a.	the redemption of shares or units, where the proceeds of such redemption are made payable
	to	other than:
	(1)	the shares or units of record,
	(2)	a person designated to receive redemption proceeds, or
	(3)	a bank account designated to receive redemption proceeds, or
b.	the redemption of shares or units, where the proceeds of such redemption are paid by check
	mailed	to any address, unless such address has either been designated the shareholder or
	unitholder	by voice through an Automated Phone System or in writing, at least thirty (30)
	days	prior to such redemption, or

 

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c.	the redemption of shares or units, where shareholder or unitholder of the ASSURED designated bank account of record.

This Endorsement applies to loss discovered after 12:01 a.m. on December 31, 2011.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

Date: January 6, 2012

 

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TELEFACSIMILE INSTRUCTION FRAUD ENDORSEMENT

It is agreed that this Bond is amended as follows:

1.	By adding the following INSURING CLAUSE:
	14.	Telefacsimile Instruction
		Loss	resulting directly from the ASSURED having transferred, paid or delivered any
		funds	or other Property or established any credit, debited any account or given any
		value	on the faith of any fraudulent instructions sent by a Customer , financial institution
		or	another office of the ASSURED by Telefacsimile directly to the ASSURED authorizing
		or	acknowledging the transfer, payment or delivery of funds or Property or the
		establishment	of a credit or the debiting of an account or the giving of value by the
		ASSURED	where such Telefacsimile instructions:
		a.	bear a valid test key exchanged between the ASSURED and a Customer or another financial institution with authority to use such test key for Telefacsimile instructions in the ordinary course of business, but which test key has been wrongfully obtained by a person who was not authorized to initiate, make, validate or authenticate a test key arrangement, and
		b.	fraudulently purport to have been sent by such Customer or financial institution when such Telefacsimile instructions were transmitted without the knowledge or consent of such Customer or financial institution by a person other than such Customer or financial institution and which bear a Forgery of a signature, provided that the Telefacsimile instruction was verified by a direct call back to an employee of the financial institution, or a person thought by the ASSURED to be the Customer , or an employee of another financial institution.
2.	By deleting from Section 1., Definitions, the definition of Customer in its entirety, and substituting
	the	following:
	d.	Customer means an individual, corporate, partnership, trust customer, shareholder or
		subscriber	of an Investment Company which has a written agreement with the ASSURED
		for	Voice Initiated Funds Transfer Instruction or Telefacsimile Instruction.

 

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3.	By adding to Section 1., Definitions, the following:
	kk.	Telefacsimile means a system of transmitting written documents by electronic signals over telephone lines to equipment maintained by the ASSURED for the purpose of reproducing a copy of said document. Telefacsimile does not mean electronic communication sent by Telex or similar means of communication, or through an electronic communication system or through an automated clearing house.
4.	By adding to Section 3., Specific Exclusions Applicable to All Insuring Clauses Except Insuring
	Clause	1. the following:
	d.	loss resulting directly or indirectly from Telefacsimile instructions provided, however, this exclusion shall not apply to this INSURING CLAUSE.

This Endorsement applies to loss discovered after 12:01 a.m. on December 31, 2011.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

Date: January 6, 2012

 

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FEDERAL INSURANCE COMPANY

 

NAME OF ASSURED: JOHN HANCOCK FUNDS; JOHN HANCOCK FUNDS II; JOHN

HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

STOP PAYMENT ORDER OR REFUSAL TO PAY CHECK ENDORSEMENT

It is agreed that this Bond is amended as follows:

1.	By adding the following INSURING CLAUSE: “15. Stop Payment Order or Refusal to Pay Check

Loss resulting directly from the ASSURED being legally liable to pay compensatory damages for:

a.	complying or failing to comply with notice from any customer of the ASSURED or any authorized representative of such customer, to stop payment on any check or draft made or drawn upon or against the ASSURED by such customer or by any authorized representative of such customer, or
b.	refusing to pay any check or draft made or drawn upon or against the ASSURED by any customer of the ASSURED or by any authorized representative of such customer.”

2.	By adding the following Specific Exclusion:
	“Section	4.A. Specific Exclusions – Applicable to INSURING CLAUSE 15
	This	Bond does not directly or indirectly cover:
	a.	liability assumed by the ASSURED by agreement under any contract, unless such liability would
		have	attached to the ASSURED even in the absence of such agreement,
	b.	loss arising out of:
		(1)	libel, slander, wrongful entry, eviction, defamation, false arrest, false imprisonment, malicious prosecution, assault or battery,
		(2)	sickness, disease, physical bodily harm, mental or emotional distress or anguish, or death of any person, or
		(3)	discrimination.”
This	Endorsement applies to loss discovered after 12:01 a.m. on December 31, 2011.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

Date: January 6, 2012

ICAP Bond

Form 17-02-2365 (Ed. 10-00)

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FEDERAL INSURANCE COMPANY

Endorsement No.: 7

Bond Number: 81906724

NAME OF ASSURED: JOHN HANCOCK FUNDS; JOHN HANCOCK FUNDS II; JOHN

HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

EXTENDED COMPUTER SYSTEMS ENDORSEMENT

It is agreed that this Bond is amended as follows:

1.	By adding the following INSURING CLAUSE:
	16.	Extended Computer Systems
		A.	Electronic Data, Electronic Media, Electronic Instruction
			Loss	resulting directly from:
			(1)	the fraudulent modification of Electronic Data, Electronic Media or Electronic Instruction being stored within or being run within any system covered under this INSURING CLAUSE,
			(2)	robbery, burglary, larceny or theft of Electronic Data, Electronic Media or
				Electronic Instructions ,
			(3)	the acts of a hacker causing damage or destruction of Electronic Data, Electronic Media or Electronic Instruction owned by the ASSURED or for which the ASSURED is legally liable, while stored within a Computer System covered under this INSURING CLAUSE, or
			(4)	the damage or destruction of Electronic Data, Electronic Media or Electronic Instruction owned by the ASSURED or for which the ASSURED is legally liable while stored within a Computer System covered under INSURING CLAUSE 8, provided such damage or destruction was caused by a computer program or similar instruction which was written or altered to intentionally incorporate a hidden instruction designed to damage or destroy Electronic Data, Electronic Media , or
				Electronic Instruction in the Computer System in which the computer program or instruction so written or so altered is used.

 

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B.	Electronic Communication
	Loss	resulting directly from the ASSURED having transferred, paid or delivered any
	funds	or property, established any credit, debited any account or given any value on the
	faith	of any electronic communications directed to the ASSURED, which were
	transmitted	or appear to have been transmitted through:
	(1)	an Electronic Communication System ,
	(2)	an automated clearing house or custodian, or
	(3)	a Telex, TWX, or similar means of communication,
	directly	into the ASSURED'S Computer System or Communication Terminal , and
	fraudulently	purport to have been sent by a customer, automated clearing house,
	custodian,	or financial institution, but which communications were either not sent by said
	customer,	automated clearing house, custodian, or financial institution, or were
	fraudulently	modified during physical transit of Electronic Media to the ASSURED or
	during	electronic transmission to the ASSURED'S Computer System or
	Communication	Terminal .
C.	Electronic Transmission
	Loss	resulting directly from a customer of the ASSURED, any automated clearing house,
	custodian,	or financial institution having transferred, paid or delivered any funds or property,
	established	any credit, debited any account or given any value on the faith of any electronic
	communications,	purporting to have been directed by the ASSURED to such customer,
	automated	clearing house, custodian, or financial institution initiating, authorizing, or
	acknowledging,	the transfer, payment, delivery or receipt of funds or property, which
	communications	were transmitted through:
	(1)	an Electronic Communication System ,
	(2)	an automated clearing house or custodian, or
	(3)	a Telex, TWX, or similar means of communication,
	directly	into a Computer System or Communication Terminal of said customer,
	automated	clearing house, custodian, or financial institution, and fraudulently purport to
	have	been directed by the ASSURED, but which communications were either not sent
	by	the ASSURED, or were fraudulently modified during physical transit of Electronic
	Media	from the ASSURED or during electronic transmission from the ASSURED'S
	Computer	System or Communication Terminal , and for which loss the ASSURED is
	held	to be legally liable.

 

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2.	By adding to Section 1., Definitions, the following:
	ll.	Communication Terminal means a teletype, teleprinter or video display terminal, or similar
		device	capable of sending or receiving information electronically. Communication Terminal
		does	not mean a telephone.
	mm.	Electronic Communication System means electronic communication operations by
		Fedwire,	Clearing House Interbank Payment System (CHIPS), Society of Worldwide
		International	Financial Telecommunication (SWIFT), similar automated interbank
		communication	systems, and Internet access facilities.
	nn.	Electronic Data means facts or information converted to a form usable in Computer
		Systems	and which is stored on Electronic Media for use by computer programs.
	oo.	Electronic Instruction means computer programs converted to a form usable in a Computer
		System	to act upon Electronic Data .
	pp.	Electronic Media means the magnetic tape, magnetic disk, optical disk, or any other bulk
		media	on which data is recorded.
3.	By adding the following Section after Section 4., Specific Exclusions-Applicable to All INSURING
	CLAUSES	except 1., 4., and 5.:
	Section	4.A. Specific Exclusions-Applicable to INSURING CLAUSE 16
	This	Bond does not directly or indirectly cover:
	a.	loss resulting directly or indirectly from Forged , altered or fraudulent negotiable instruments,
		securities,	documents or written instruments used as source documentation in the preparation
		of	Electronic Data ;
	b.	loss of negotiable instruments, securities, documents or written instruments except as
		converted	to Electronic Data and then only in that converted form;
	c.	loss resulting from mechanical failure, faulty construction, error in design, latent defect, wear
		or	tear, gradual deterioration, electrical disturbance, Electronic Media failure or breakdown or
		any	malfunction or error in programming or error or omission in processing;
	d.	loss resulting directly or indirectly from the input of Electronic Data at an authorized
		electronic	terminal of an Electronic Funds Transfer System or a Customer
		Communication	System by a person who had authorized access from a customer to that
		customer's	authentication mechanism; or
	e.	liability assumed by the ASSURED by agreement under any contract, unless such liability would
		have	attached to the ASSURED even in the absence of such agreement; or
	f.	loss resulting directly or indirectly from:
		(1)	written instruction unless covered under this INSURING CLAUSE; or
		(2)	instruction by voice over the telephone, unless covered under this INSURING CLAUSE.

 

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4.	By adding to Section 9., Valuation, the following:
	Electronic Data, Electronic Media, Or Electronic Instruction
	In case of loss of, or damage to, Electronic Data, Electronic Media or Electronic Instruction used by the ASSURED in its business, the COMPANY shall be liable under this Bond only if such items are actually reproduced form other Electronic Data, Electronic Media or Electronic Instruction of the same kind or quality and then for not more than the cost of the blank media and/or the cost of labor for the actual transcription or copying of data which shall have been furnished by the ASSURED in order to reproduce such Electronic Data, Electronic Media or Electronic Instruction subject to the applicable SINGLE LOSS LIMIT OF LIABILITY.
	However, if such Electronic Data can not be reproduced and said Electronic Data represents Securities or financial instruments having a value, then the loss will be valued as indicated in the SECURITIES and OTHER PROPERTY paragraphs of this Section.

This Endorsement applies to loss discovered after 12:01 a.m. on December 31, 2011.

ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

Date: January 6, 2012

 

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AUTOMATIC INCREASE IN LIMITS ENDORSEMENT

In consideration of the premium charged, it is agreed that General Agreements, Section C., Additional Offices or Employees-Consolidation, Merger or Purchase or Acquisition of Assets or Liabilities-Notice to Company, is amended by adding the following:

If the ASSURED, while this Bond is in force, establish new funds other than by consolidation or merger with, purchase or acquisition of assets or liabilities of, another institution, such funds shall automatically be covered hereunder from the date of establishment.

If the ASSURED, while this Bond is in force, require an increase in limits to comply with SEC Reg. 17g-1, due to an increase in assets, such increase shall automatically be covered hereunder from the date of such increase, but only as excess coverage. Such excess coverage shall not exceed five million dollars ($5,000,000) in additional limits and shall be excess of this Bond and of the following excess Bond:

 

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

All other terms, conditions and limitations of this Bond shall remain unchanged.

Authorized Representative

Q07-1972(08/2007)

Page 1

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In consideration of the premium charged, it is agreed that Section 1., Definitions, the term Employee is amended to include the following:

Any natural person while in the service of the ASSURED solely while performing sub-advisory services for the ASSURED pursuant to a written contract.

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

All other terms, conditions and limitations of this Bond shall remain unchanged.

Authorized Representative

Q07-1957 (08/2007)

Page 1

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HANCOCK FUNDS III; JOHN HANCOCK VARIABLE INSURANCE TRUST

DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION

ENDORSEMENT

In consideration of the premium charged, it is agreed that this Bond is amended as follows:

1.	The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety.
2.	The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced with the following:
	If this Bond is for a joint ASSURED, no change or modification which would adversely affect the rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been furnished to all insured Investment Companies and the Securities and Exchange Commission, Washington, D.C., by the COMPANY.

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

All other terms, conditions and limitations of this Bond shall remain unchanged.

Authorized Representative

17-02-2437 (12/2006) rev.

Page 1

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NAME OF ASSURED ENDORSEMENT

It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as follows:

 

 

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ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.

Date: January 6, 2012

 

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ENDORSEMENT/RIDER

 

 

AMEND NAME OF ASSURED (NEW FUNDS) ENDORSEMENT

In consideration of the premium charged, is agreed that:

1.

The NAME OF ASSURED, as set forth on the DECLARATIONS of this Bond, shall include any newly created, merged, consolidated or terminated registered investment company sponsored by an ASSURED or any newly created portfolio of an ASSURED. Provided, however, that this provision shall not apply to a registered investment company that is created as a result of a merger, consolidation or acquisition with any other registered investment company.

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

All other terms, conditions and limitations of this Policy shall remain unchanged.

Authorized Representative

Q09-1831 (11/2009)

Page 1

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AMEND DISCOVERY AND NOTICE ENDORSEMENT

In consideration of the premium charged, it is agreed that this Bond is amended as follows:

(1)	Section 6., Discovery, is deleted in its entirety and replaced it with the following:
	Discovery
	This	Bond applies only to loss first discovered by the President, General Counsel or Risk Manager of
	the	ASSURED during the BOND PERIOD. Discovery occurs at the earlier of the President, General
	Counsel	or Risk Manager of the ASSURED being aware of:
	a.	facts which may subsequently result in a loss of a type covered by this Bond, or
	b.	an actual or potential claim in which it is alleged that the ASSURED is liable to a third party,
	regardless	of when the act or acts causing or contributing to such loss occurred, even though the
	amount	of loss does not exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or details
	of	loss may not then be known.
(2)	Section 7., Notice to Company-Proof-Legal Proceedings Against Company, is amended by deleting
	paragraph	a. and replacing it with the following:
	a.	The ASSURED shall give the COMPANY notice thereof at the earliest practicable moment, not to exceed sixty (60) days after discovery of loss by President, General Counsel or Risk Manager of the ASSURED, in an amount that is in excess of fifty percent (50%) of the applicable DEDUCTIBLE AMOUNT, as stated in ITEM 2. of the DECLARATIONS .

The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.

All other terms, conditions and limitations of this Bond shall remain unchanged.

Authorized Representative

14-02-14521 (08/2008)

Page 1

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Important Notice:

The SEC Requires Proof of Your Fidelity Insurance Policy

Your company is now required to file an electronic copy of your fidelity insurance coverage (Chubb’s ICAP Bond policy) to the Securities and Exchange Commission (SEC), according to rules adopted by the SEC on June 12, 2006.

Chubb is in the process of providing your agent/broker with an electronic copy of your insurance policy as well as instructions on how to submit this proof of fidelity insurance coverage to the SEC. You can expect to receive this information from your agent/broker shortly.

The electronic copy of your policy is provided by Chubb solely as a convenience and does not affect the terms and conditions of coverage as set forth in the paper policy you receive by mail. The terms and conditions of the policy mailed to you, which are the same as those set forth in the electronic copy, constitute the entire agreement between your company and Chubb.

If you have any questions, please contact your agent or broker.

Form 14-02-12160 (ed. 7/2006)

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      POLICYHOLDER DISCLOSURE NOTICE OF

TERRORISM INSURANCE COVERAGE

(for policies with no terrorism exclusion or sublimit)

You are hereby notified that, under the Terrorism Risk Insurance Act (the “Act”), effective December 26, 2007, this policy makes available to you insurance for losses arising out of certain acts of terrorism. Terrorism is defined as any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

You should know that the insurance provided by your policy for losses caused by acts of terrorism is partially reimbursed by the United States under the formula set forth in the Act. Under this formula, the United States pays 85% of covered terrorism losses that exceed the statutorily established deductible to be paid by the insurance company providing the coverage.

However, if aggregate insured losses attributable to terrorist acts certified under the Act exceed $100 billion in a Program Year (January 1 through December 31), the Treasury shall not make any payment for any portion of the amount of such losses that exceeds $100 billion.

10-02-1281 (Ed. 1/2003)

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If aggregate insured losses attributable to terrorist acts certified under the Act exceed $100 billion in a Program Year (January 1 through December 31) and we have met our insurer deductible under the Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury.

The portion of your policy’s annual premium that is attributable to insurance for such acts of terrorism is: $ -0-.

If you have any questions about this notice, please contact your agent or broker.

10-02-1281 (Ed. 1/2003)

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IMPORTANT NOTICE TO POLICYHOLDERS

      All of the members of the Chubb Group of Insurance companies doing business in the United States (hereinafter “Chubb”) distribute their products through licensed insurance brokers and agents (“producers”). Detailed information regarding the types of compensation paid by Chubb to producers on US insurance transactions is available under the Producer Compensation link located at the bottom of the page at www.chubb.com, or by calling 1-866-588-9478. Additional information may be available from your producer.

Thank you for choosing Chubb.

10-02-1295 (ed. 6/2007)

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ICI MUTUAL INSURANCE COMPANY,

a Risk Retention Group

      1401 H St. NW Washington DC 20005

INVESTMENT COMPANY BLANKET BOND

(EXCESS)

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ICI MUTUAL INSURANCE COMPANY, a Risk Retention Group

1401 H St. NW
Washington, DC 20005

DECLARATIONS

NOTICE

This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.

 

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NOTICE

This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.

ICI Mutual Insurance Company, a Risk Retention Group (“Underwriter”), in consideration of the required premium, and in reliance on the application and all other information furnished to the Underwriter by the Insured, and subject to and in accordance with the Declarations, General Agreements, Provisions, Conditions and Limitations of this bond, agrees to indemnify the Insured for loss, discovered during the Bond Period, which would otherwise have been paid under the Primary Bond but for the fact that the loss exceeds the limit of liability of such Primary Bond. Coverage under this bond shall follow the terms and conditions of the Primary Bond, except with respect to:

a.	Any coverage exceptions specified by riders attached to this bond;
b.	The deductible amounts and limits of liability as stated in ITEM 3. of the Declarations and;
c.	The General Agreements, Provisions, Conditions and Limitations set forth herein.

GENERAL AGREEMENTS

A.	CHANGE OR MODIFICATION OF PRIMARY BOND
	If after the inception date of this bond the Primary Bond is changed or modified, written notice of any such change or modification shall be given to the Underwriter as soon as practicable, not to exceed thirty (30) days after such change or modification, together with such information as the Underwriter may request. There shall be no coverage under this bond for any loss arising from or in any way related to such change or modification until such time as the Underwriter is advised of and specifically agrees by written endorsement to provide coverage for such change or modification.
B.	LOSS--NOTICE--PROOF--LEGAL PROCEEDINGS
	This Bond is for the use and benefit only of the Insured and the Underwriter shall not be liable hereunder for loss sustained by anyone other than the Insured (except that if the Insured includes such other loss in the Insured's proof of loss, the Underwriter shall consider its liability therefor.) As soon as practicable and not more than sixty (60) days after discovery of any loss covered hereunder, the Insured shall give the Underwriter written notice thereof and, as soon as practicable and within one year after such discovery, shall also furnish to the Underwriter affirmative proof of loss with full particulars. The Underwriter may extend the sixty day notice period or the one year proof of loss period if the Insured requests an extension and shows good cause therefor.
	The Underwriter shall not be liable hereunder for loss of Securities unless each of the Securities is identified in such proof of loss by a certificate or bond number or by such identification means as the Underwriter may require. The Underwriter shall have a reasonable period after receipt of a proper affirmative proof of loss within which to investigate the claim, but where the loss is of Securities and is clear and undisputed, settlement shall be made within forty-eight (48) hours even if the loss involves Securities of which duplicates may be obtained.
	The Insured shall not bring legal proceedings against the Underwriter to recover any loss hereunder
prior	to sixty (60) days after filing such proof of loss or subsequent to twenty-four (24) months after
the	discovery of such loss or, in the case of a legal proceeding to recover hereunder on account of any
judgment	against the Insured in or settlement of any suit or to recover court costs or attorneys' fees
paid	in any such suit, twenty-four (24) months after the date of the final judgment in or settlement of

2

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such suit. If any limitation in this bond is prohibited by any applicable law, such limitation shall be deemed to be amended to be equal to the minimum period of limitation permitted by such law.

Notice hereunder shall be given to Manager, Professional Liability Claims, ICI Mutual Insurance Company, 1401 H St. NW, Washington, DC 20005.

PROVISIONS, CONDITIONS AND LIMITATIONS

SECTION 1. DEFINITIONS

a.	Deductible Amount means the amount stated in ITEM 3. of the Declarations, applicable to each
	Single	Loss. In no event shall this Deductible Amount be reduced for any reason, including but not
	limited	to, the non-existence, invalidity, insufficiency or uncollectibility of any Underlying Bond(s) ,
	including	the insolvency or dissolution of any Insurer providing coverage under any Underlying
	Bond(s)	.
b.	Primary Bond means the bond scheduled in ITEM 5. of the Declarations or any bond that may
	replace	or substitute for such bond.
c.	Single Loss means:
	(1)	all loss resulting from any one actual or attempted theft committed by one person, or
	(2)	all loss caused by any one act (other than a theft or a dishonest or fraudulent act) committed by one person, or
	(3)	all loss caused by dishonest or fraudulent acts committed by one person, or
	(4)	all expenses incurred with respect to any one audit or examination, or
	(5)	all loss caused by any one occurrence or event other than those specified in subsections (1) through (4) above.
d.	Underlying Bond means the Primary Bond and all other insurance coverage referred to in ITEM 4.
	Of	the Declarations.

SECTION 2. SINGLE LOSS LIMIT OF LIABILITY

The Underwriter’s liability for each Single Loss shall not exceed the Limit of Liability as stated in ITEM 3. of the Declarations.

SECTION 3. DISCOVERY

For all purposes under this bond, a loss is discovered, and discovery of a loss occurs, when the Insured

(1)	becomes aware of facts, or
(2)	receives notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstances, which would cause a reasonable person to assume that loss covered by this bond has been or is likely to be incurred even though the exact amount or details of loss may not be known.

SECTION 4. ASSIGNMENT OF RIGHTS

Upon payment to the Insured hereunder for any loss, the Underwriter shall be subrogated to the extent of such payment to all of the Insured's rights and claims in connection with such loss; provided,

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however, that the Underwriter shall not be subrogated to any such rights or claims one named Insured under this bond may have against another named Insured under this bond. At the request of the Underwriter, the Insured shall execute all assignments or other documents and take such action as the Underwriter may deem necessary or desirable to secure and perfect such rights and claims, including the execution of documents necessary to enable the Underwriter to bring suit in the name of the Insured.

Assignment of any rights or claims under this bond shall not bind the Underwriter without the Underwriter's written consent.

SECTION 5. COOPERATION OF INSURED

At the Underwriter’s request and at reasonable times and places designated by the Underwriter the Insured shall:

a.	submit to examination by the Underwriter and subscribe to the same under oath, and
b.	produce for the Underwriter’s examination all pertinent records, and
c.	cooperate with the Underwriter in all matters pertaining to the loss.

The Insured shall execute all papers and render assistance to secure for the Underwriter the rights and causes of action provided for under this bond. The Insured shall do nothing after loss to prejudice such rights or causes of action.

SECTION 6. TERMINATION

The Underwriter may terminate this bond as to any Insured or all Insureds only by written notice to such Insured or Insureds and, if this bond is terminated as to any investment company registered under the Investment Company Act of 1940, to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C., in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.

The Insured may terminate this bond only by written notice to the Underwriter not less than sixty (60) days prior to the effective date of the termination specified in such notice. Notwithstanding the foregoing, when the Insured terminates this bond as to any investment company registered under the Investment Company Act of 1940, the effective date of termination shall be not less than sixty (60) days from the date the Underwriter provides written notice of the termination to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C.

This bond will terminate as to any Insured entity that is not an investment company registered under the Investment Company Act of 1940 immediately and without notice upon (1) the takeover of such Insured's business by any State or Federal official or agency, or by any receiver or liquidator, or (2) the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors of the Insured.

Premiums are earned until the effective date of termination. The Underwriter shall refund the unearned premium computed at short rates in accordance with the Underwriter's standard short rate cancellation tables if this bond is terminated by the Insured or pro rata if this bond is terminated by the Underwriter.

Upon the detection by any Insured that an employee (as defined in the Primary Bond ) has committed any dishonest or fraudulent act(s) or theft, the Insured shall immediately remove such employee from a position that may enable such employee to cause the Insured to suffer a loss by any

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subsequent dishonest or fraudulent act(s) or theft. The Insured, within two (2) business days of such detection, shall notify the Underwriter with full and complete particulars of the detected dishonest or fraudulent act(s) or theft.

For purposes of this section, detection occurs when any partner, officer, or supervisory employee of any Insured, who is not in collusion with such employee, becomes aware that the employee has committed any dishonest or fraudulent act(s) or theft.

This bond shall terminate as to any employee (as defined in the Primary Bond ) by written notice from the Underwriter to each Insured and, if such employee is an employee of an Insured investment company registered under the Investment Company Act of 1940, to the Securities and Exchange Commission, in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.

SECTION 7. CONFORMITY

If any limitation within this bond is prohibited by any law controlling this bond’s construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law.

SECTION 8. CHANGE OR MODIFICATION

This bond may only be modified by written Rider forming a part hereof over the signature of the Underwriter's authorized representative. Any Rider which modifies the coverage provided by Insuring Agreement A, Fidelity (or the equivalent insuring agreement) of the Primary Bond in a manner which adversely affects the rights of an Insured investment company registered under the Investment Company Act of 1940 shall not become effective until at least sixty (60) days after the Underwriter has given written notice thereof to the Securities and Exchange Commission, Washington, D.C., and to each Insured investment company registered under the Investment Company Act of 1940 affected thereby.

SECTION 9. DEDUCTIBLE AMOUNT; LIMIT OF LIABILITY

The Underwriter shall not be liable under any Insuring Agreement unless the amount of the loss covered thereunder, after deducting the net amount of all reimbursement and/or recovery received by the Insured with respect to such loss (other than from the Primary Bond or from any other bond, suretyship or insurance policy), shall exceed the applicable Deductible Amount ; in such case the Underwriter shall be liable only for such excess, subject to the applicable Limit of Liability and other agreements, provisions, conditions and limitations of this bond.

The maximum liability of the Underwriter for any Single Loss covered by any Insuring Agreement under this bond shall be the Limit of Liability applicable to such Insuring Agreement, subject to the applicable Deductible Amount and the other agreements, provisions, conditions and limitations of this bond.

5

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      ICI MUTUAL INSURANCE COMPANY, a Risk Retention Group INVESTMENT COMPANY BLANKET BOND

(EXCESS BOND)

 

Most property and casualty insurers, including ICI Mutual Insurance Company, a Risk Retention Group (“ICI Mutual”), are subject to the requirements of the Terrorism Risk Insurance Act of 2002, as amended (the “Act”). The Act establishes a Federal insurance backstop under which ICI Mutual and these other insurers will be partially reimbursed for future “insured losses” resulting from certified “acts of terrorism.” (Each of these bolded terms is defined by the Act.) The Act also places certain disclosure and other obligations on ICI Mutual and these other insurers.

Pursuant to the Act, any future losses to ICI Mutual caused by certified “acts of terrorism” will be partially reimbursed by the United States government under a formula established by the Act. Under this formula, the United States government will reimburse ICI Mutual for 90% of ICI Mutual’s “insured losses” in excess of a statutorily established deductible until total insured losses of all participating insurers reach $100 billion. If total “insured losses” of all property and casualty insurers reach $100 billion during any applicable period, the Act provides that the insurers will not be liable under their policies for their portions of such losses that exceed such amount. Amounts otherwise payable under this bond may be reduced as a result.

Coverage under this bond remains subject to all applicable terms, conditions and limitations of the bond (including exclusions) that are permissible under the Act. The portion of the premium that is attributable to any coverage potentially available under the bond for “acts of terrorism” is one percent (1%).

RX53.0-01 (7/06)

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December 6, 2011 Board of Trustees Meeting Resolution

2011-2012 Joint Financial Institutions (Fidelity) Bond (the “Joint Bond”)

WHEREAS , Rule 17g-1 under the 1940 Act governs the required bonding of the Trusts’ officers and employees under a joint fidelity bond;

WHEREAS , the Trustees desire to approve the continuation of the Joint Bond for a one-year term ending December 31, 2012; and

WHEREAS , the Trustees of the Trusts have considered the allocation of premiums for the Joint Bond among the John Hancock Trusts and have determined that the allocation should be based on the premium (including tax) of $98,106 it is:

RESOLVED , that the Joint Bond issued by Federal Insurance Company (Chubb) and ICI Mutual Insurance Company, covering each officer and employee of the John Hancock Trusts against larceny and embezzlement, in

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the amount of $30 million for a one-year term ending December 31, 2012, and in the proposed form presented at this meeting, after consideration of all factors deemed relevant by the Board, including, but not limited to: (i) the expected value of the aggregate assets of the John Hancock Trusts to which any officer or employee of such Trusts may have access; (ii) the type and terms of the arrangements made for the custody and safekeeping of such assets; and (iii) the nature of the securities in the John Hancock Trusts’ portfolios, be, and it hereby is, determined to be reasonable in form and amount, and hereby approved;

FURTHER RESOLVED , that the portion of the premium for the Joint Bond to be paid by each Trust, in substantially the form presented at this Meeting, after consideration of all factors deemed relevant by the Board, including, but not limited to: (i) the number of the other parties named as insureds; (ii) the nature of the business activities of such other parties; (iii) the amount of the Joint Bond; (iv) the amount of the premium for such Joint Bond; (v) the ratable allocation of the premium among all parties named as insureds; and (vi) the extent to which the share of the premium allocated to each Trust is less than the premium such Trust would have had to pay if it had provided and maintained a single insured bond, be, and it hereby is, approved; and

FURTHER RESOLVED , that the appropriate officers of the Trusts be, and each hereby is, authorized to increase the amount of the Joint Bond coverage from time to time to ensure adequate coverage based upon the value of the Trusts’ assets and to enable the Trusts to remain in compliance with the 1940 Act and the rules promulgated thereunder;

FURTHER RESOLVED , that the continuation of the Joint Insured Bond Agreement among the John Hancock Trusts (the “Joint Bond Agreement”), in substantially the form presented at this Meeting, providing in substance that, in the event any recovery is received under the Joint Bond as a result of a loss sustained by the Trusts and any one or more other named insureds, the Trusts shall receive an equitable and proportionate share of the recovery, but in no event less than the amount it would have received had it provided and maintained a single bond with the minimum coverage required by paragraph (d)(1) of Rule 17g-1 under the 1940 Act, be, and it hereby is, approved;

FURTHER RESOLVED , that the Secretary of the Trusts or his delegate be, and each hereby is, authorized to make all necessary filings and give all

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notices and information with respect to such Joint Bond and the Joint Bond Agreement required by paragraph (g) of Rule 17g-1 under the 1940 Act; and

FURTHER RESOLVED , that the appropriate officers of the Trusts be, and each hereby is, authorized to make any and all payments and to do any and all such further acts, in the name of the Trusts and on its behalf, as they, or any of them, may determine to be necessary or desirable and proper, with the advice of counsel, in connection with or in furtherance of the foregoing resolutions.

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Agreement Relating to Joint Insured Bond

WHEREAS, each of the parties hereto is a named insured under a “joint insured bond,” as that term is defined in Rule 17g-1 under the Investment Company Act of 1940 (the “1940 Act”); and

WHEREAS, Rule 17g-1(f) under the 1940 Act requires an agreement between all the named insureds under a joint insured bond;

NOW, THEREFORE, the parties hereto hereby agree as follows:

In the event recovery is received under the joint insured bond as a result of a loss sustained by any two or more of the named insureds, each insured shall receive an equitable and proportionate share of the recovery, but at least equal to the amount which it would have received had it provided and maintained a single insured bond with the minimum coverage required by paragraph (d)(1) of Rule 17g-1 under the 1940 Act.

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed on its behalf by the undersigned thereunto duly authorized on October 26, 2011.

JOHN HANCOCK VARIABLE INSURANCE TRUST
(formerly known as John Hancock Trust)
on behalf of each of its Series

JOHN HANCOCK FUNDS II
on behalf of each of its Series

John HANCOCK FUNDS III
on behalf of each of its series

JOHN HANCOCK BOND TRUST
on behalf of each of its series

JOHN HANCOCK CAPITAL SERIES
on behalf of each of its series

JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND
on behalf of each of its series

JOHN HANCOCK CURRENT INTEREST
on behalf of each of its series

JOHN HANCOCK INVESTMENT TRUST
on behalf of each of its series

JOHN HANCOCK INVESTMENT TRUST II
on behalf of each of its series

JOHN HANCOCK INVESTMENT TRUST III
on behalf of each of its series

JOHN HANCOCK MUNICIPAL SERIES TRUST
on behalf of each of its series

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JOHN HANCOCK SERIES TRUST
on behalf of each of its series

JOHN HANCOCK SOVEREIGN BOND FUND
on behalf of its of its series

JOHN HANCOCK STRATEGIC SERIES
on behalf of each of its series

JOHN HANCOCK TAX-EXEMPT SERIES FUND
on behalf of each of its series

JOHN HANCOCK BANK AND THRIFT OPPORTUNITY FUND
on behalf of each of its series

JOHN HANCOCK EMERGING MARKETS INCOME FUND
on behalf of its of its series

JOHN HANCOCK FLEXIBLE INCOME OPPORTUNITIES FUND
on behalf of its of its series

JOHN HANCOCK HEDGED EQUITY & INCOME FUND
on behalf of its of its series

JOHN HANCOCK INCOME SECURITES TRUST
on behalf of each of its series

JOHN HANCOCK INVESTORS TRUST
on behalf of each of its series

JOHN HANCOCK PREFERRED INCOME FUND
on behalf of each of its series

JOHN HANCOCK PREFERRED INCOME FUND II
on behalf of each of its series

JOHN HANCOCK PREFERRED INCOME FUND III
on behalf of each of its series

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JOHN HANCOCK PREMIUM DIVIDEND FUND
on behalf of each of its series

JOHN HANCOCK TAX-ADVANTAGED DIVIDEND INCOME FUND
on behalf of each of its series

JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND
on behalf of each of its series
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Executed on behalf of each Trust and its relevant Series referenced above:

By: /s/ Betsy Anne Seel
Name: Betsy Anne Seel
Title: Assistant Secretary

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STATEMENT REGARDING SINGLE BOND AMOUNT

If the investment companies shown below had not been named as an insured under this joint insured bond, they would have provided and maintained a single bond in the amount of at least:

 

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PREMIUM PERIOD

Premiums have been paid for the period December 31, 2011 to December 31, 2012 .

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