JHS John Hancock Income Security Trust

Annual report

John Hancock

Income Securities Trust  

Closed-end fixed income

Ticker: JHS

October 31, 2023

A message to shareholders

Dear shareholder,

U.S. bonds posted mixed results for the 12 months ended October 31, 2023. Bond yields rose sharply, putting downward pressure on bond prices, as recent economic and inflation data led to expectations that the U.S. Federal Reserve (Fed) would not be lowering short-term interest rates anytime soon. The Fed raised short-term rates in July—its tenth rate hike since March 2022, which boosted the federal funds rate target to its highest level in more than 22 years—then held rates steady at its policy meetings in September and October.

Intermediate- and long-term bond yields increased the most, with the 10-year U.S. Treasury bond yield rising to its highest level since 2007. From a sector perspective, residential mortgage-backed securities and U.S. Treasury securities declined the most.

In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.

On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.

Sincerely,

Kristie M. Feinberg

Head of Wealth and Asset Management,
United States and Europe
Manulife Investment Management

President and CEO,
John Hancock Investment Management

This commentary reflects the CEO’s views, which are subject to change at any time. Investing involves risks, including the potential loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. It is not possible to invest directly in an index. For more up-to-date information, please visit our website at jhinvestments.com.

John Hancock

Income Securities Trust

Table of contents

2	Your fund at a glance
5	Management’s discussion of fund performance
7	A look at performance
9	Fund’s investments
32	Financial statements
36	Financial highlights
37	Notes to financial statements
47	Report of independent registered public accounting firm
48	Tax information
49	Investment objective, principal investment strategies, and principal risks
54	Additional information
56	Evaluation of advisory and subadvisory agreements by the Board of Trustees
62	Trustees and Officers
66	More information

ANNUAL REPORT  | JOHN HANCOCK INCOME SECURITIES TRUST

1

Your fund at a glance

INVESTMENT OBJECTIVE

The fund seeks to generate a high level of current income consistent with prudent investment risk.

AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2023 (%)

The Bloomberg U.S. Government/Credit Index tracks the performance of U.S. government bonds, U.S. corporate bonds, and Yankee bonds.

It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns.

The performance data contained within this material represents past performance, which does not guarantee future results.

Investment returns and principal value will fluctuate and a shareholder may sustain losses. Further, the fund’s performance at net asset value (NAV) is different from the fund’s performance at closing market price because the closing market price is subject to the dynamics of secondary market trading. Market risk may increase when shares are purchased at a premium to NAV or sold at a discount to NAV. Current month-end performance may be higher or lower than the performance cited. The fund’s most recent performance can be found at jhinvestments.com or by calling 800-852-0218.

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JOHN HANCOCK INCOME SECURITIES TRUST  | ANNUAL REPORT

PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS

PORTFOLIO COMPOSITION AS OF 10/31/2023 (% of total investments)

ANNUAL REPORT  | JOHN HANCOCK INCOME SECURITIES TRUST

3

QUALITY COMPOSITION AS OF 10/31/2023 (% of total investments)

Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 10-31-23 and do not reflect subsequent downgrades or upgrades, if any.

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JOHN HANCOCK INCOME SECURITIES TRUST  | ANNUAL REPORT

Management’s discussion of fund performance

How did the U.S. bond market perform during the 12 months ended October 31, 2023?

U.S. bonds posted modestly positive returns in an environment of heightened volatility. Bond yields rose broadly during the period as the U.S. Federal Reserve (Fed) continued to raise short-term interest rates to bring inflation under control. While the Fed’s aggressive rate hikes led to moderating inflationary pressures, the U.S. economy remained resilient, led by a robust labor market and buoyant consumer spending.

The Fed’s interest rate increases pushed short-term bond yields sharply higher, but longer-term yields also rose meaningfully amid expectations that rates are likely to remain at elevated levels for an extended period of time. Sector performance was mixed; high-yield corporate bonds and asset-backed securities generated the best returns, while U.S. Treasury securities and residential mortgage-backed securities declined.

How did the fund perform?

The fund produced a gain in net asset value and a decline in market price. In both cases, the fund trailed the performance of its comparative index. One factor was the leverage the fund uses to amplify fixed-income exposure and boost interest income. Higher interest rates increased the cost of this leverage, which offset some of the benefits in terms of investment returns. Individual security selection also weighed on performance versus the index, most notably among U.S.-dollar-denominated debt in emerging markets.

On the positive side, the fund maintained a shorter duration (a measure of interest-rate sensitivity) than the index, which helped limit the negative impact of higher bond yields on fund performance. Sector allocation also added value during the period, led by an out-of-index position in high-yield corporate bonds and an underweight position in U.S. Treasury securities. This was offset in part by a noteworthy position in residential mortgage-backed securities.

MANAGED BY

Jeffrey N. Given, CFA

Howard C. Greene, CFA

Connor Minnaar, CFA

The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

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JOHN HANCOCK INCOME SECURITIES TRUST  | ANNUAL REPORT

A look at performance

TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2023

Average annual total returns (%)				Cumulative total returns (%)
	1-Year	5-Year	10-Year	5-year	10-Year
At Net asset value	0.35	-0.01	2.20	-0.03	24.35
At Market price	-2.82	-0.66	1.81	-3.26	19.68
Bloomberg U.S. Government/Credit Index	0.74	0.30	1.08	1.50	11.36

Performance figures assume all distributions have been reinvested.

The returns reflect past results and should not be considered indicative of future performance. Investment returns and principal value will fluctuate and a shareholder may sustain losses. Further, the fund’s performance at net asset value (NAV) is different from the fund’s performance at closing market price because the closing market price is subject to the dynamics of secondary market trading. Market risk may be augmented when shares are purchased at a premium to NAV or when shares need to be sold at a discount to NAV. Current month-end performance may be higher or lower than the performance cited. The fund’s most recent performance can be found at jhinvestments.com or by calling 800-852-0218.

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the sale of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.

ANNUAL REPORT  | JOHN HANCOCK INCOME SECURITIES TRUST

7

This chart shows what happened to a hypothetical $10,000 investment in John Hancock Income Securities Trust for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the Bloomberg U.S. Government/Credit Index.

The Bloomberg U.S. Government/Credit Index tracks the performance of U.S. government bonds, U.S. corporate bonds, and Yankee bonds.

It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns.

The returns reflect past results and should not be considered indicative of future performance.

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JOHN HANCOCK INCOME SECURITIES TRUST  | ANNUAL REPORT

Fund’s investments

AS OF 10-31-23

	Rate (%)	Maturity date		Par value^	Value
U.S. Government and Agency obligations 85.7% (49.5% of Total investments)					$109,365,711
(Cost $117,408,909)
U.S. Government 21.5%					27,464,210
U.S. Treasury
Bond (A)	3.375	11-15-48		1,210,000	895,542
Bond (A)	3.625	05-15-53		1,106,000	862,162
Bond (A)(B)	4.000	11-15-42		1,154,000	978,285
Bond (A)	4.125	08-15-53		214,000	183,070
Bond (A)	4.375	08-15-43		340,000	303,238
Note (A)	3.750	04-15-26		205,000	199,250
Note (A)(B)	3.875	04-30-25		3,000,000	2,941,875
Note (A)	3.875	08-15-33		501,000	461,155
Note (A)(B)	4.250	09-30-24		2,647,000	2,618,462
Note (A)(B)	4.250	10-15-25		3,300,000	3,248,438
Note (A)	4.375	10-31-24		4,000,000	3,958,125
Note (A)	4.375	08-15-26		268,000	264,168
Note (A)	4.875	10-31-28		10,102,000	10,123,309
Note (A)	4.875	10-31-30		428,000	427,131
U.S. Government Agency 64.2%					81,901,501
Federal Home Loan Mortgage Corp.
15 Yr Pass Thru (A)	2.000	06-01-36		621,408	529,163
15 Yr Pass Thru	4.500	01-01-38		1,885,115	1,786,870
30 Yr Pass Thru	3.000	03-01-43		305,785	259,750
30 Yr Pass Thru	3.000	10-01-49		777,619	632,682
30 Yr Pass Thru	3.000	12-01-49		52,955	43,051
30 Yr Pass Thru (A)	3.000	12-01-49		1,083,434	877,095
30 Yr Pass Thru	3.500	07-01-46		382,381	328,441
30 Yr Pass Thru	3.500	10-01-46		315,812	268,598
30 Yr Pass Thru	3.500	12-01-46		136,145	116,429
30 Yr Pass Thru	3.500	02-01-47		779,036	665,491
30 Yr Pass Thru	3.500	11-01-48		1,462,889	1,249,215
30 Yr Pass Thru	4.000	05-01-52		836,330	732,077
30 Yr Pass Thru	4.500	07-01-52		238,446	214,384
30 Yr Pass Thru	4.500	07-01-52		2,172,794	1,953,529
30 Yr Pass Thru	4.500	08-01-52		149,015	134,164
30 Yr Pass Thru	4.500	08-01-52		715,007	643,300
30 Yr Pass Thru (A)	4.500	08-01-52		595,331	535,626
30 Yr Pass Thru	4.500	09-01-52		368,096	330,835
30 Yr Pass Thru	4.500	09-01-52		412,461	371,353
30 Yr Pass Thru	4.500	09-01-52		3,613,743	3,252,455
30 Yr Pass Thru	5.000	07-01-52		1,083,386	1,003,794
30 Yr Pass Thru	5.000	07-01-52		1,035,977	960,580

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

9

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
30 Yr Pass Thru	5.000	08-01-52		1,020,984	$944,212
30 Yr Pass Thru (A)	5.000	10-01-52		822,561	761,552
30 Yr Pass Thru	5.000	11-01-52		1,821,208	1,694,668
30 Yr Pass Thru	5.000	12-01-52		1,091,192	1,007,190
30 Yr Pass Thru	5.000	02-01-53		411,527	379,590
30 Yr Pass Thru	5.000	02-01-53		1,504,174	1,390,731
30 Yr Pass Thru	5.000	05-01-53		1,555,510	1,438,730
30 Yr Pass Thru	5.500	09-01-52		1,043,851	995,399
30 Yr Pass Thru	5.500	11-01-52		2,086,729	1,989,869
30 Yr Pass Thru	5.500	11-01-52		2,175,554	2,073,211
30 Yr Pass Thru	5.500	02-01-53		943,972	900,451
30 Yr Pass Thru	5.500	02-01-53		950,914	905,587
30 Yr Pass Thru	5.500	03-01-53		734,469	700,377
30 Yr Pass Thru	5.500	04-01-53		865,260	825,367
30 Yr Pass Thru	5.500	06-01-53		990,628	942,912
30 Yr Pass Thru	5.500	06-01-53		982,404	936,190
30 Yr Pass Thru	5.500	06-01-53		752,974	718,023
30 Yr Pass Thru	5.500	07-01-53		1,068,700	1,017,625
30 Yr Pass Thru	5.500	07-01-53		759,359	722,498
30 Yr Pass Thru	5.500	07-01-53		759,248	722,346
30 Yr Pass Thru	6.000	04-01-53		949,286	927,426
30 Yr Pass Thru	6.000	09-01-53		991,311	967,554
30 Yr Pass Thru (C)	6.500	09-01-53		794,424	793,309
30 Yr Pass Thru (C)	6.500	10-01-53		798,901	797,181
Federal National Mortgage Association
30 Yr Pass Thru	3.000	12-01-42		908,051	769,839
30 Yr Pass Thru	3.000	07-01-43		237,291	200,507
30 Yr Pass Thru	3.000	11-01-49		240,317	195,074
30 Yr Pass Thru	3.500	12-01-42		1,013,492	884,912
30 Yr Pass Thru	3.500	01-01-43		1,119,044	979,247
30 Yr Pass Thru	3.500	04-01-45		382,829	328,321
30 Yr Pass Thru (A)	3.500	11-01-46		746,036	636,551
30 Yr Pass Thru	3.500	07-01-47		777,951	663,296
30 Yr Pass Thru (A)	3.500	07-01-47		765,402	657,380
30 Yr Pass Thru	3.500	11-01-47		334,533	284,916
30 Yr Pass Thru	3.500	09-01-49		165,296	139,721
30 Yr Pass Thru (A)	3.500	03-01-50		426,390	360,150
30 Yr Pass Thru	4.000	09-01-41		279,678	251,929
30 Yr Pass Thru (A)	4.000	01-01-49		748,575	657,191
30 Yr Pass Thru	4.000	07-01-49		154,261	135,911
30 Yr Pass Thru	4.000	08-01-49		316,365	278,634
30 Yr Pass Thru	4.000	02-01-50		250,226	219,758
30 Yr Pass Thru (A)	4.000	03-01-51		826,621	727,002
30 Yr Pass Thru (A)	4.000	08-01-51		551,976	486,317

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JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
U.S. Government Agency (continued)
30 Yr Pass Thru	4.000	10-01-51		1,113,016	$976,795
30 Yr Pass Thru	4.000	04-01-52		105,752	91,876
30 Yr Pass Thru	4.000	06-01-52		1,075,435	932,976
30 Yr Pass Thru	4.000	06-01-52		1,112,997	965,561
30 Yr Pass Thru	4.000	06-01-52		888,071	775,704
30 Yr Pass Thru	4.000	07-01-52		424,654	369,861
30 Yr Pass Thru (A)	4.500	06-01-52		445,087	400,589
30 Yr Pass Thru	4.500	06-01-52		1,032,237	928,070
30 Yr Pass Thru (A)	4.500	08-01-52		499,455	446,712
30 Yr Pass Thru	4.500	08-01-52		115,064	103,597
30 Yr Pass Thru (A)	4.500	08-01-52		840,072	751,359
30 Yr Pass Thru (A)	4.500	09-01-52		705,253	636,728
30 Yr Pass Thru (A)	5.000	06-01-52		723,911	671,633
30 Yr Pass Thru	5.000	08-01-52		1,401,800	1,297,983
30 Yr Pass Thru	5.000	10-01-52		1,694,134	1,573,141
30 Yr Pass Thru (A)	5.000	10-01-52		816,112	756,602
30 Yr Pass Thru	5.000	11-01-52		2,860,138	2,651,579
30 Yr Pass Thru (A)	5.000	12-01-52		772,538	716,205
30 Yr Pass Thru (A)	5.000	03-01-53		1,164,611	1,077,506
30 Yr Pass Thru	5.500	01-01-53		1,981,317	1,888,112
30 Yr Pass Thru	5.500	02-01-53		939,263	896,546
30 Yr Pass Thru (A)	5.500	03-01-53		742,054	707,610
30 Yr Pass Thru	5.500	04-01-53		1,794,225	1,706,457
30 Yr Pass Thru	5.500	05-01-53		1,054,531	1,003,605
30 Yr Pass Thru	5.500	05-01-53		1,277,127	1,218,245
30 Yr Pass Thru (A)	5.500	05-01-53		1,065,277	1,015,830
30 Yr Pass Thru (A)	5.500	05-01-53		733,573	699,523
30 Yr Pass Thru	6.000	08-01-53		997,663	976,248
30 Yr Pass Thru (C)	6.500	04-01-53		778,558	780,385
30 Yr Pass Thru (C)	6.500	05-01-53		765,674	764,887
30 Yr Pass Thru (C)	6.500	08-01-53		786,918	789,011
30 Yr Pass Thru (C)	6.500	08-01-53		784,701	785,316
30 Yr Pass Thru (C)	6.500	09-01-53		793,779	792,666
30 Yr Pass Thru (C)	6.500	10-01-53		800,000	803,115
30 Yr Pass Thru (C)	6.500	11-01-53		650,000	651,932
Corporate bonds 62.6% (36.2% of Total investments)					$79,907,414
(Cost $89,838,523)
Communication services 5.6%					7,207,691
Diversified telecommunication services 1.0%
C&W Senior Financing DAC (D)	6.875	09-15-27		208,000	178,838
Connect Finco SARL (A)(D)	6.750	10-01-26		371,000	345,971
GCI LLC (A)(D)	4.750	10-15-28		208,000	178,485
Telesat Canada (D)	5.625	12-06-26		93,000	59,361

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

11

	Rate (%)	Maturity date		Par value^	Value
Communication services (continued)
Diversified telecommunication services (continued)
Total Play Telecomunicaciones SA de CV (D)	6.375	09-20-28		216,000	$103,429
Total Play Telecomunicaciones SA de CV (A)(B)(D)	7.500	11-12-25		333,000	240,388
Zayo Group Holdings, Inc. (A)(B)(D)	4.000	03-01-27		153,000	115,154
Zayo Group Holdings, Inc. (A)(B)(D)	6.125	03-01-28		142,000	94,068
Entertainment 1.9%
Netflix, Inc. (A)(D)	5.375	11-15-29		92,000	89,201
Netflix, Inc. (A)	5.875	11-15-28		400,000	400,149
The Walt Disney Company (A)	7.750	01-20-24		1,020,000	1,023,461
WarnerMedia Holdings, Inc. (A)	4.279	03-15-32		214,000	177,431
WarnerMedia Holdings, Inc. (A)	5.050	03-15-42		120,000	88,887
WarnerMedia Holdings, Inc. (A)	5.141	03-15-52		681,000	481,887
WMG Acquisition Corp. (A)(D)	3.875	07-15-30		214,000	177,868
Interactive media and services 0.1%
Match Group Holdings II LLC (A)(D)	3.625	10-01-31		67,000	51,423
Meta Platforms, Inc. (A)	4.800	05-15-30		117,000	112,816
Media 1.5%
Charter Communications Operating LLC (A)	4.200	03-15-28		464,000	422,281
Charter Communications Operating LLC (A)	5.750	04-01-48		500,000	379,363
Charter Communications Operating LLC (A)	6.384	10-23-35		338,000	305,488
Globo Comunicacao e Participacoes SA (D)	4.875	01-22-30		315,000	249,968
News Corp. (A)(D)	3.875	05-15-29		166,000	142,093
Sirius XM Radio, Inc. (A)(D)	4.000	07-15-28		179,000	152,227
Sirius XM Radio, Inc. (A)(D)	5.000	08-01-27		309,000	283,322
Wireless telecommunication services 1.1%
T-Mobile USA, Inc. (A)	3.875	04-15-30		789,000	686,985
T-Mobile USA, Inc. (A)	5.375	04-15-27		135,000	132,802
T-Mobile USA, Inc. (A)	5.650	01-15-53		224,000	193,614
Vodafone Group PLC (A)	5.625	02-10-53		143,000	120,273
Vodafone Group PLC (7.000% to 4-4-29, then 5 Year U.S. Swap Rate + 4.873% to 4-4-49, then 5 Year U.S. Swap Rate + 5.623%) (A)	7.000	04-04-79		228,000	220,458
Consumer discretionary 5.3%					6,768,437
Automobile components 0.1%
Dealer Tire LLC (A)(B)(D)	8.000	02-01-28		92,000	86,293
Automobiles 2.2%
Ford Motor Company (A)	3.250	02-12-32		134,000	101,136
Ford Motor Credit Company LLC (A)	4.125	08-17-27		329,000	298,702
Ford Motor Credit Company LLC (A)	5.113	05-03-29		440,000	400,469
Ford Motor Credit Company LLC	6.800	05-12-28		753,000	750,848
General Motors Company (A)	5.400	10-15-29		314,000	294,843

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JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Consumer discretionary (continued)
Automobiles (continued)
General Motors Company (A)	5.400	04-01-48		162,000	$121,448
General Motors Financial Company, Inc. (A)	3.600	06-21-30		762,000	628,773
Nissan Motor Acceptance Company LLC (A)(D)	6.950	09-15-26		260,000	260,714
Broadline retail 0.2%
Macy’s Retail Holdings LLC (A)(B)(D)	5.875	04-01-29		89,000	78,462
Macy’s Retail Holdings LLC (A)(B)(D)	5.875	03-15-30		77,000	65,141
Macy’s Retail Holdings LLC (A)(B)(D)	6.125	03-15-32		141,000	116,446
Distributors 0.0%
LKQ Corp. (A)	5.750	06-15-28		83,000	80,435
Hotels, restaurants and leisure 1.6%
Affinity Interactive (A)(D)	6.875	12-15-27		88,000	71,728
Booking Holdings, Inc. (A)	4.625	04-13-30		270,000	251,553
Caesars Entertainment, Inc. (A)(D)	7.000	02-15-30		76,000	73,347
CCM Merger, Inc. (A)(D)	6.375	05-01-26		105,000	99,391
Choice Hotels International, Inc. (A)	3.700	12-01-29		108,000	88,451
Choice Hotels International, Inc. (A)	3.700	01-15-31		139,000	109,327
Full House Resorts, Inc. (A)(B)(D)	8.250	02-15-28		100,000	84,203
Hilton Grand Vacations Borrower Escrow LLC (A)(D)	5.000	06-01-29		185,000	154,937
Jacobs Entertainment, Inc. (A)(D)	6.750	02-15-29		77,000	65,450
MGM Resorts International (A)	4.750	10-15-28		332,000	289,698
Midwest Gaming Borrower LLC (A)(D)	4.875	05-01-29		210,000	174,825
Mohegan Tribal Gaming Authority (A)(D)	8.000	02-01-26		173,000	158,944
Resorts World Las Vegas LLC (A)(D)	4.625	04-16-29		200,000	153,610
Travel + Leisure Company (A)(D)	4.625	03-01-30		91,000	74,497
Yum! Brands, Inc. (A)(D)	4.750	01-15-30		183,000	162,908
Household durables 0.3%
Brookfield Residential Properties, Inc. (A)(D)	5.000	06-15-29		117,000	91,317
Century Communities, Inc. (A)(D)	3.875	08-15-29		157,000	126,693
KB Home (A)	4.000	06-15-31		178,000	138,984
Specialty retail 0.9%
Asbury Automotive Group, Inc. (A)(B)(D)	4.625	11-15-29		38,000	32,144
Asbury Automotive Group, Inc. (A)	4.750	03-01-30		134,000	113,712
AutoNation, Inc. (A)	4.750	06-01-30		244,000	213,713
Group 1 Automotive, Inc. (A)(D)	4.000	08-15-28		107,000	92,100
Lithia Motors, Inc. (A)(D)	3.875	06-01-29		80,000	66,168
Lithia Motors, Inc. (A)(D)	4.375	01-15-31		80,000	64,772
Lithia Motors, Inc. (A)(D)	4.625	12-15-27		40,000	36,086
The Michaels Companies, Inc. (A)(B)(D)	5.250	05-01-28		253,000	183,314
The Michaels Companies, Inc. (D)	7.875	05-01-29		234,000	130,455
Valvoline, Inc. (A)(D)	3.625	06-15-31		240,000	182,400

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

13

	Rate (%)	Maturity date		Par value^	Value
Consumer staples 1.6%					$2,085,543
Beverages 0.2%
Anheuser-Busch Companies LLC (A)	4.700	02-01-36		290,000	255,211
Food products 1.4%
JBS USA LUX SA (A)	3.625	01-15-32		207,000	159,121
JBS USA LUX SA (A)	3.750	12-01-31		65,000	50,509
JBS USA LUX SA (A)	5.125	02-01-28		128,000	120,204
JBS USA LUX SA (A)	5.750	04-01-33		348,000	307,360
Kraft Heinz Foods Company (A)	4.375	06-01-46		534,000	390,704
Kraft Heinz Foods Company (A)	5.000	06-04-42		139,000	114,563
MARB BondCo PLC (D)	3.950	01-29-31		264,000	193,799
NBM US Holdings, Inc. (D)	6.625	08-06-29		298,000	267,999
Pilgrim’s Pride Corp. (A)	6.250	07-01-33		246,000	226,073
Energy 9.3%					11,825,714
Oil, gas and consumable fuels 9.3%
Aker BP ASA (D)	3.100	07-15-31		298,000	234,047
Antero Midstream Partners LP (A)(D)	5.375	06-15-29		182,000	165,265
Antero Resources Corp. (A)(D)	5.375	03-01-30		69,000	62,964
Ascent Resources Utica Holdings LLC (A)(D)	5.875	06-30-29		237,000	209,367
Ascent Resources Utica Holdings LLC (A)(D)	8.250	12-31-28		40,000	39,719
Cheniere Energy Partners LP (A)	4.000	03-01-31		362,000	303,127
Cheniere Energy Partners LP (A)	4.500	10-01-29		403,000	360,825
Civitas Resources, Inc. (A)(D)	8.625	11-01-30		111,000	112,979
Columbia Pipelines Operating Company LLC (A)(D)	5.927	08-15-30		87,000	84,005
Columbia Pipelines Operating Company LLC (A)(D)	6.036	11-15-33		135,000	128,202
Continental Resources, Inc. (A)	4.900	06-01-44		162,000	114,388
Enbridge, Inc. (5.500% to 7-15-27, then 3 month CME Term SOFR + 3.680% to 7-15-47, then 3 month CME Term SOFR + 4.430%) (A)	5.500	07-15-77		340,000	289,272
Enbridge, Inc. (5.750% to 7-15-30, then 5 Year CMT + 5.314% to 7-15-50, then 5 Year CMT + 6.064%) (A)	5.750	07-15-80		347,000	289,243
Enbridge, Inc. (6.250% to 3-1-28, then 3 month CME Term SOFR + 3.903% to 3-1-48, then 3 month CME Term SOFR + 4.653%) (A)	6.250	03-01-78		306,000	268,009
Enbridge, Inc. (8.500% to 1-15-34, then 5 Year CMT + 4.431% to 1-15-54, then 5 Year CMT + 5.181%) (A)	8.500	01-15-84		144,000	137,947
Energean Israel Finance, Ltd. (D)	5.375	03-30-28		79,000	64,616
Energean Israel Finance, Ltd. (D)	5.875	03-30-31		138,000	110,041
Energy Transfer LP (A)	4.200	04-15-27		172,000	161,079
Energy Transfer LP (A)	5.150	03-15-45		345,000	267,169
Energy Transfer LP (A)	5.250	04-15-29		263,000	249,606

14

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Energy (continued)
Oil, gas and consumable fuels (continued)
Energy Transfer LP (A)	5.400	10-01-47		250,000	$196,339
Energy Transfer LP (A)	5.500	06-01-27		263,000	256,511
Energy Transfer LP (6.500% to 11-15-26, then 5 Year CMT + 5.694%) (A)(E)	6.500	11-15-26		488,000	441,972
Energy Transfer LP (7.125% to 5-15-30, then 5 Year CMT + 5.306%) (A)(E)	7.125	05-15-30		381,000	316,393
Enterprise Products Operating LLC (5.250% to 8-16-27, then 3 month CME Term SOFR + 3.295%) (A)	5.250	08-16-77		580,000	497,769
EQM Midstream Partners LP (A)(D)	7.500	06-01-27		32,000	31,692
EQM Midstream Partners LP (A)(D)	7.500	06-01-30		18,000	17,660
Hess Midstream Operations LP (A)(D)	4.250	02-15-30		59,000	50,485
Hess Midstream Operations LP (A)(D)	5.500	10-15-30		25,000	22,695
Kinder Morgan Energy Partners LP (A)	7.750	03-15-32		142,000	148,577
Leviathan Bond, Ltd. (D)	6.500	06-30-27		327,000	286,835
Leviathan Bond, Ltd. (D)	6.750	06-30-30		64,000	54,119
MC Brazil Downstream Trading SARL (D)	7.250	06-30-31		201,664	143,484
MPLX LP (A)	4.125	03-01-27		79,000	74,191
MPLX LP (A)	4.250	12-01-27		170,000	158,136
MPLX LP (A)	4.950	09-01-32		149,000	132,276
MPLX LP (A)	5.000	03-01-33		152,000	134,601
Occidental Petroleum Corp. (A)	6.450	09-15-36		229,000	222,423
Occidental Petroleum Corp.	6.600	03-15-46		126,000	121,326
Occidental Petroleum Corp. (A)	6.625	09-01-30		308,000	308,941
ONEOK, Inc. (A)	5.650	11-01-28		109,000	106,362
ONEOK, Inc. (A)	6.050	09-01-33		407,000	390,052
ONEOK, Inc. (A)	6.625	09-01-53		260,000	242,983
Ovintiv, Inc. (A)	5.650	05-15-28		86,000	83,497
Ovintiv, Inc. (A)	6.250	07-15-33		86,000	81,750
Ovintiv, Inc. (A)	7.200	11-01-31		41,000	41,343
Parkland Corp. (A)(D)	4.500	10-01-29		133,000	114,393
Parkland Corp. (A)(D)	4.625	05-01-30		130,000	110,825
Petroleos Mexicanos	7.690	01-23-50		454,000	280,381
Petroleos Mexicanos	8.750	06-02-29		123,000	108,776
Sabine Pass Liquefaction LLC (A)	4.200	03-15-28		153,000	140,779
Sabine Pass Liquefaction LLC (A)	4.500	05-15-30		416,000	373,143
Sabine Pass Liquefaction LLC (A)	5.000	03-15-27		259,000	249,433
Southwestern Energy Company (A)	4.750	02-01-32		98,000	84,279
Sunoco LP (A)	4.500	05-15-29		72,000	62,369
Sunoco LP (A)	4.500	04-30-30		196,000	167,408
Targa Resources Corp. (A)	4.950	04-15-52		323,000	235,683
Targa Resources Partners LP (A)	4.000	01-15-32		267,000	219,749
The Williams Companies, Inc. (A)	4.650	08-15-32		213,000	187,679
Var Energi ASA (D)	7.500	01-15-28		200,000	204,635

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

15

	Rate (%)	Maturity date		Par value^	Value
Energy (continued)
Oil, gas and consumable fuels (continued)
Var Energi ASA (D)	8.000	11-15-32		412,000	$424,990
Venture Global Calcasieu Pass LLC (A)(D)	3.875	08-15-29		72,000	59,917
Venture Global Calcasieu Pass LLC (A)(D)	4.125	08-15-31		119,000	95,677
Venture Global LNG, Inc. (A)(D)	9.500	02-01-29		229,000	232,650
Western Midstream Operating LP (A)	4.050	02-01-30		234,000	202,865
Western Midstream Operating LP (A)	6.150	04-01-33		59,000	55,801
Financials 17.7%					22,591,919
Banks 12.3%
Banco Santander SA	4.379	04-12-28		287,000	260,999
Bank of America Corp. (3.846% to 3-8-32, then 5 Year CMT + 2.000%) (A)	3.846	03-08-37		340,000	268,222
Bank of America Corp. (3.970% to 3-5-28, then 3 month CME Term SOFR + 1.332%) (A)	3.970	03-05-29		297,000	268,736
Bank of America Corp. (5.015% to 7-22-32, then Overnight SOFR + 2.160%) (A)	5.015	07-22-33		965,000	862,784
Bank of America Corp. (6.204% to 11-10-27, then Overnight SOFR + 1.990%) (A)	6.204	11-10-28		309,000	306,916
Bank of America Corp. (6.300% to 3-10-26, then 3 month CME Term SOFR + 4.815%) (A)(E)	6.300	03-10-26		403,000	392,125
Barclays PLC (4.375% to 9-15-28, then 5 Year CMT + 3.410%) (A)(E)	4.375	03-15-28		296,000	202,307
BPCE SA (A)(D)	4.500	03-15-25		235,000	226,698
Citigroup, Inc. (A)	3.200	10-21-26		449,000	413,917
Citigroup, Inc. (A)	4.600	03-09-26		425,000	407,337
Citigroup, Inc. (4.700% to 1-30-25, then Overnight SOFR + 3.234%) (A)(E)	4.700	01-30-25		356,000	318,317
Citigroup, Inc. (6.174% to 5-25-33, then Overnight SOFR + 2.661%) (A)	6.174	05-25-34		288,000	267,706
Citigroup, Inc. (6.250% to 8-15-26, then 3 month CME Term SOFR + 4.779%) (A)(E)	6.250	08-15-26		525,000	492,849
Citigroup, Inc. (6.270% to 11-17-32, then Overnight SOFR + 2.338%) (A)	6.270	11-17-33		150,000	145,644
Citizens Financial Group, Inc. (A)(B)	3.250	04-30-30		448,000	345,541
Credit Agricole SA (A)(D)	3.250	01-14-30		486,000	394,948
Credit Agricole SA (6.316% to 10-3-28, then Overnight SOFR + 1.860%) (A)(D)	6.316	10-03-29		281,000	276,094
Fifth Third Bancorp (3 month CME Term SOFR + 3.295%) (A)(E)(F)	8.689	12-01-23		173,000	156,024
HSBC Holdings PLC (6.375% to 3-30-25, then 5 Year ICE Swap Rate + 4.368%) (A)(E)	6.375	03-30-25		200,000	188,537
Huntington Bancshares, Inc. (6.208% to 8-21-28, then Overnight SOFR + 2.020%) (A)	6.208	08-21-29		163,000	156,690

16

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Financials (continued)
Banks (continued)
JPMorgan Chase & Co. (4.600% to 2-1-25, then 3 month CME Term SOFR + 3.125%) (A)(E)	4.600	02-01-25		379,000	$353,100
JPMorgan Chase & Co. (4.912% to 7-25-32, then Overnight SOFR + 2.080%) (A)	4.912	07-25-33		345,000	309,889
JPMorgan Chase & Co. (5.717% to 9-14-32, then Overnight SOFR + 2.580%) (A)	5.717	09-14-33		355,000	332,440
Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (A)(E)	7.500	06-27-24		385,000	375,210
M&T Bank Corp. (5.125% to 11-1-26, then 3 month LIBOR + 3.520%) (A)(E)	5.125	11-01-26		141,000	106,331
NatWest Group PLC (5.516% to 9-30-27, then 1 Year CMT + 2.270%) (A)	5.516	09-30-28		342,000	327,235
NatWest Group PLC (6.000% to 6-29-26, then 5 Year CMT + 5.625%) (A)(E)	6.000	12-29-25		393,000	360,031
Popular, Inc. (A)(B)	7.250	03-13-28		218,000	216,127
Santander Holdings USA, Inc. (A)	3.244	10-05-26		600,000	538,859
Santander Holdings USA, Inc. (A)	3.450	06-02-25		521,000	492,912
Santander Holdings USA, Inc. (A)	4.400	07-13-27		395,000	363,413
Societe Generale SA (5.375% to 11-18-30, then 5 Year CMT + 4.514%) (A)(D)(E)	5.375	11-18-30		269,000	192,928
Societe Generale SA (6.446% to 1-10-28, then 1 Year CMT + 2.550%) (A)(D)	6.446	01-10-29		472,000	461,163
The PNC Financial Services Group, Inc. (3.400% to 9-15-26, then 5 Year CMT + 2.595%) (A)(E)	3.400	09-15-26		438,000	315,159
The PNC Financial Services Group, Inc. (5.582% to 6-12-28, then Overnight SOFR + 1.841%) (A)	5.582	06-12-29		431,000	412,665
The PNC Financial Services Group, Inc. (5.939% to 8-18-33, then Overnight SOFR + 1.946%) (A)	5.939	08-18-34		245,000	228,372
The PNC Financial Services Group, Inc. (6.250% to 3-15-30, then 7 Year CMT + 2.808%) (A)(E)	6.250	03-15-30		216,000	177,768
The PNC Financial Services Group, Inc. (3 month CME Term SOFR + 3.302%) (A)(E)(F)	8.711	12-01-23		224,000	220,901
The PNC Financial Services Group, Inc. (3 month CME Term SOFR + 3.940%) (E)(F)	9.312	11-01-23		340,000	340,000
Truist Financial Corp. (5.867% to 6-8-33, then Overnight SOFR + 2.361%) (A)	5.867	06-08-34		256,000	232,883
Truist Financial Corp. (7.161% to 10-30-28, then Overnight SOFR + 2.446%) (A)	7.161	10-30-29		163,000	163,961
U.S. Bancorp (5.836% to 6-10-33, then Overnight SOFR + 2.260%) (A)	5.836	06-12-34		287,000	264,346
U.S. Bancorp (6.787% to 10-26-26, then Overnight SOFR + 1.880%) (A)	6.787	10-26-27		272,000	274,035

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

17

	Rate (%)	Maturity date		Par value^	Value
Financials (continued)
Banks (continued)
Wells Fargo & Company (3.350% to 3-2-32, then Overnight SOFR + 1.500%) (A)	3.350	03-02-33		690,000	$543,283
Wells Fargo & Company (4.808% to 7-25-27, then Overnight SOFR + 1.980%) (A)	4.808	07-25-28		621,000	587,459
Wells Fargo & Company (4.897% to 7-25-32, then Overnight SOFR + 2.100%) (A)	4.897	07-25-33		438,000	384,982
Wells Fargo & Company (5.875% to 6-15-25, then 9.865% thereafter) (A)(E)	5.875	06-15-25		755,000	733,524
Capital markets 3.3%
Ares Capital Corp. (A)	3.250	07-15-25		140,000	131,285
Ares Capital Corp. (A)	3.875	01-15-26		539,000	504,073
Ares Capital Corp. (A)	7.000	01-15-27		195,000	194,286
Blackstone Private Credit Fund (A)	3.250	03-15-27		60,000	51,756
Blackstone Private Credit Fund (A)	4.000	01-15-29		291,000	243,454
Blackstone Private Credit Fund (A)	7.050	09-29-25		445,000	443,300
Deutsche Bank AG (3.742% to 1-7-32, then Overnight SOFR + 2.257%) (A)	3.742	01-07-33		339,000	237,083
Deutsche Bank AG (6.720% to 1-18-28, then Overnight SOFR + 3.180%) (A)	6.720	01-18-29		205,000	201,217
Jefferies Financial Group, Inc. (A)	5.875	07-21-28		205,000	197,888
Lazard Group LLC (A)	4.375	03-11-29		230,000	208,795
Macquarie Bank, Ltd. (A)(D)	3.624	06-03-30		246,000	196,195
Morgan Stanley (4.431% to 1-23-29, then 3 month CME Term SOFR + 1.890%) (A)	4.431	01-23-30		58,000	52,810
Morgan Stanley (5.123% to 2-1-28, then Overnight SOFR + 1.730%) (A)	5.123	02-01-29		111,000	105,682
Morgan Stanley (5.164% to 4-20-28, then Overnight SOFR + 1.590%) (A)	5.164	04-20-29		343,000	326,340
Morgan Stanley (5.449% to 7-20-28, then Overnight SOFR + 1.630%) (A)	5.449	07-20-29		170,000	163,496
Morgan Stanley (5.948% to 1-19-33, then 5 Year CMT + 2.430%) (A)	5.948	01-19-38		531,000	481,497
MSCI, Inc. (A)(D)	3.625	11-01-31		305,000	242,144
The Charles Schwab Corp. (5.643% to 5-19-28, then Overnight SOFR + 2.210%) (A)	5.643	05-19-29		290,000	279,168
Consumer finance 0.4%
Ally Financial, Inc. (6.992% to 6-13-28, then Overnight SOFR + 3.260%) (A)	6.992	06-13-29		227,000	216,977
Ally Financial, Inc. (A)(B)	7.100	11-15-27		170,000	166,560
OneMain Finance Corp. (A)(B)	9.000	01-15-29		96,000	93,424
Financial services 0.3%
Block, Inc. (A)(B)	3.500	06-01-31		96,000	74,088

18

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Financials (continued)
Financial services (continued)
Corebridge Financial, Inc. (6.875% to 12-15-27, then 5 Year CMT + 3.846%) (A)	6.875	12-15-52		112,000	$103,473
Nationstar Mortgage Holdings, Inc. (A)(D)	5.125	12-15-30		71,000	57,452
Nationstar Mortgage Holdings, Inc. (A)(D)	5.500	08-15-28		147,000	129,904
Nationstar Mortgage Holdings, Inc. (A)(D)	6.000	01-15-27		75,000	69,714
Insurance 1.4%
Athene Holding, Ltd. (A)	3.500	01-15-31		162,000	129,377
CNA Financial Corp. (A)	3.900	05-01-29		150,000	134,190
CNO Financial Group, Inc. (A)	5.250	05-30-29		384,000	354,337
Liberty Mutual Group, Inc. (4.125% to 12-15-26, then 5 Year CMT + 3.315%) (A)(D)	4.125	12-15-51		203,000	161,164
MetLife, Inc. (6.400% to 12-15-36, then 3 month LIBOR + 2.205%) (A)	6.400	12-15-36		355,000	332,804
Nippon Life Insurance Company (2.750% to 1-21-31, then 5 Year CMT + 2.653%) (D)	2.750	01-21-51		165,000	126,690
SBL Holdings, Inc. (A)(D)	5.000	02-18-31		275,000	207,888
Teachers Insurance & Annuity Association of America (A)(D)	4.270	05-15-47		430,000	312,041
Health care 2.0%					2,541,085
Biotechnology 0.1%
Star Parent, Inc. (A)(D)	9.000	10-01-30		111,000	110,155
Health care equipment and supplies 0.1%
Varex Imaging Corp. (A)(D)	7.875	10-15-27		104,000	101,934
Health care providers and services 1.3%
AdaptHealth LLC (A)(D)	5.125	03-01-30		132,000	99,990
Centene Corp. (A)	3.000	10-15-30		236,000	186,764
Centene Corp. (A)	3.375	02-15-30		138,000	114,105
Centene Corp. (A)	4.250	12-15-27		70,000	64,421
CVS Health Corp. (A)	3.750	04-01-30		211,000	183,572
CVS Health Corp. (A)	5.050	03-25-48		260,000	204,382
CVS Health Corp. (A)	5.250	01-30-31		281,000	264,467
DaVita, Inc. (A)(D)	3.750	02-15-31		160,000	115,009
DaVita, Inc. (A)(D)	4.625	06-01-30		285,000	223,357
HCA, Inc. (A)	5.500	06-01-33		230,000	209,833
Life sciences tools and services 0.2%
Thermo Fisher Scientific, Inc. (A)	4.977	08-10-30		299,000	285,212
Pharmaceuticals 0.3%
Viatris, Inc. (A)	2.700	06-22-30		301,000	231,175
Viatris, Inc. (A)	4.000	06-22-50		255,000	146,709

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

19

	Rate (%)	Maturity date		Par value^	Value
Industrials 9.2%					$11,716,919
Aerospace and defense 1.1%
Huntington Ingalls Industries, Inc. (A)	4.200	05-01-30		190,000	168,229
The Boeing Company (A)	3.200	03-01-29		164,000	141,709
The Boeing Company (A)	5.040	05-01-27		480,000	464,782
The Boeing Company (A)	5.150	05-01-30		651,000	609,954
Building products 0.4%
Builders FirstSource, Inc. (A)(D)	4.250	02-01-32		225,000	179,068
Builders FirstSource, Inc. (A)(D)	6.375	06-15-32		135,000	123,562
Owens Corning (A)	3.950	08-15-29		282,000	250,047
Commercial services and supplies 0.3%
APX Group, Inc. (A)(D)	5.750	07-15-29		201,000	167,104
Prime Security Services Borrower LLC (A)(D)	3.375	08-31-27		47,000	41,323
Prime Security Services Borrower LLC (A)(B)(D)	6.250	01-15-28		163,000	151,150
Construction and engineering 0.2%
Global Infrastructure Solutions, Inc. (A)(D)	5.625	06-01-29		200,000	160,000
MasTec, Inc. (A)(D)	4.500	08-15-28		147,000	128,923
Electrical equipment 0.4%
Emerald Debt Merger Sub LLC (A)(D)	6.625	12-15-30		144,000	136,980
Regal Rexnord Corp. (A)(D)	6.050	02-15-26		181,000	178,032
Regal Rexnord Corp. (A)(D)	6.400	04-15-33		155,000	142,196
Ground transportation 0.2%
Uber Technologies, Inc. (A)(B)(D)	4.500	08-15-29		320,000	282,219
Machinery 0.2%
Flowserve Corp. (A)	3.500	10-01-30		184,000	148,003
Ingersoll Rand, Inc. (A)	5.400	08-14-28		51,000	49,694
Passenger airlines 4.6%
Air Canada 2013-1 Class A Pass Through Trust (A)(D)	4.125	05-15-25		150,399	142,912
Air Canada 2017-1 Class B Pass Through Trust (A)(D)	3.700	01-15-26		163,386	152,549
Air Canada 2020-1 Class C Pass Through Trust (D)	10.500	07-15-26		136,000	146,272
Alaska Airlines 2020-1 Class B Pass Through Trust (A)(D)	8.000	08-15-25		95,152	95,014
American Airlines 2015-1 Class A Pass Through Trust (A)	3.375	05-01-27		620,312	547,599
American Airlines 2016-1 Class A Pass Through Trust (A)	4.100	01-15-28		275,410	244,594
American Airlines 2016-1 Class AA Pass Through Trust (A)	3.575	01-15-28		68,023	61,986
American Airlines 2016-3 Class A Pass Through Trust (A)	3.250	10-15-28		32,296	27,402
American Airlines 2017-1 Class A Pass Through Trust (A)	4.000	02-15-29		133,819	115,723

20

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Industrials (continued)
Passenger airlines (continued)
American Airlines 2017-1 Class AA Pass Through Trust (A)	3.650	02-15-29		205,875	$184,176
American Airlines 2017-2 Class A Pass Through Trust (A)	3.600	10-15-29		167,856	142,664
American Airlines 2019-1 Class A Pass Through Trust (A)	3.500	02-15-32		259,245	206,856
American Airlines 2019-1 Class AA Pass Through Trust (A)	3.150	02-15-32		209,827	174,862
American Airlines 2019-1 Class B Pass Through Trust (A)	3.850	02-15-28		84,662	73,617
American Airlines 2021-1 Class A Pass Through Trust (A)	2.875	07-11-34		182,651	147,080
American Airlines 2021-1 Class B Pass Through Trust (A)	3.950	07-11-30		252,070	216,318
American Airlines, Inc. (A)(B)(D)	7.250	02-15-28		166,000	154,351
British Airways 2018-1 Class A Pass Through Trust (A)(D)	4.125	09-20-31		97,784	86,066
British Airways 2020-1 Class A Pass Through Trust (A)(D)	4.250	11-15-32		88,137	78,812
British Airways 2020-1 Class B Pass Through Trust (A)(D)	8.375	11-15-28		59,748	60,498
Delta Air Lines, Inc. (A)(B)	4.375	04-19-28		250,000	229,630
Delta Air Lines, Inc. (A)(D)	4.750	10-20-28		332,848	312,871
JetBlue 2019-1 Class AA Pass Through Trust (A)	2.750	05-15-32		228,045	190,933
United Airlines 2014-2 Class A Pass Through Trust (A)	3.750	09-03-26		293,821	274,047
United Airlines 2016-1 Class A Pass Through Trust (A)	3.450	07-07-28		280,880	245,907
United Airlines 2016-1 Class B Pass Through Trust (A)	3.650	01-07-26		244,368	228,764
United Airlines 2018-1 Class B Pass Through Trust (A)	4.600	03-01-26		100,495	94,219
United Airlines 2019-1 Class A Pass Through Trust (A)	4.550	08-25-31		212,567	182,956
United Airlines 2020-1 Class A Pass Through Trust (A)	5.875	10-15-27		461,946	454,805
United Airlines 2020-1 Class B Pass Through Trust (A)	4.875	01-15-26		138,016	132,242
United Airlines 2023-1 Class A Pass Through Trust	5.800	01-15-36		275,000	257,705
United Airlines, Inc. (A)(D)	4.375	04-15-26		23,000	21,335
United Airlines, Inc. (A)(D)	4.625	04-15-29		53,000	44,769
US Airways 2012-2 Class A Pass Through Trust (A)	4.625	06-03-25		110,525	105,182
Professional services 0.2%
Concentrix Corp. (A)	6.600	08-02-28		266,000	255,373

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

21

	Rate (%)	Maturity date		Par value^	Value
Industrials (continued)
Trading companies and distributors 1.6%
AerCap Ireland Capital DAC	3.000	10-29-28		465,000	$391,644
AerCap Ireland Capital DAC	3.875	01-23-28		1,137,000	1,021,126
Air Lease Corp. (A)	3.625	12-01-27		164,000	146,936
Air Lease Corp. (A)	5.850	12-15-27		290,000	283,373
Beacon Roofing Supply, Inc. (A)(D)	4.125	05-15-29		151,000	126,764
United Rentals North America, Inc. (A)	3.875	11-15-27		146,000	134,012
Information technology 3.5%					4,448,838
IT services 0.2%
Gartner, Inc. (A)(D)	4.500	07-01-28		287,000	258,219
Semiconductors and semiconductor equipment 2.5%
Broadcom, Inc. (A)(D)	3.419	04-15-33		408,000	317,230
Broadcom, Inc. (A)	4.750	04-15-29		976,000	907,591
Foundry JV Holdco LLC (A)(D)	5.875	01-25-34		239,000	221,714
Micron Technology, Inc. (A)	4.185	02-15-27		467,000	437,168
Micron Technology, Inc. (A)	5.327	02-06-29		523,000	496,917
Micron Technology, Inc. (A)	5.875	02-09-33		140,000	130,238
Micron Technology, Inc. (A)	6.750	11-01-29		174,000	174,846
NXP BV	3.875	06-18-26		372,000	351,839
Qorvo, Inc. (A)(D)	3.375	04-01-31		187,000	144,999
Software 0.3%
Consensus Cloud Solutions, Inc. (A)(B)(D)	6.500	10-15-28		119,000	98,621
Oracle Corp. (A)	6.250	11-09-32		275,000	272,421
Technology hardware, storage and peripherals 0.5%
CDW LLC (A)	3.250	02-15-29		115,000	97,090
Dell International LLC (A)	5.300	10-01-29		566,000	539,945
Materials 2.6%					3,303,500
Chemicals 0.4%
Braskem Netherlands Finance BV (D)	4.500	01-31-30		213,000	163,982
Braskem Netherlands Finance BV (D)	5.875	01-31-50		269,000	173,673
Sasol Financing USA LLC	5.500	03-18-31		158,000	120,968
Construction materials 0.5%
Cemex SAB de CV (D)	3.875	07-11-31		255,000	206,998
Cemex SAB de CV (D)	5.200	09-17-30		256,000	232,019
Standard Industries, Inc. (A)(D)	3.375	01-15-31		109,000	82,482
Standard Industries, Inc. (A)(D)	4.375	07-15-30		122,000	99,677
Standard Industries, Inc. (A)(D)	5.000	02-15-27		54,000	49,911
Containers and packaging 0.5%
Graphic Packaging International LLC (A)(D)	3.500	03-01-29		165,000	137,069
Mauser Packaging Solutions Holding Company (A)(D)	7.875	08-15-26		116,000	108,648
Owens-Brockway Glass Container, Inc. (A)(D)	6.625	05-13-27		97,000	92,150

22

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Materials (continued)
Containers and packaging (continued)
Owens-Brockway Glass Container, Inc. (A)(B)(D)	7.250	05-15-31		76,000	$69,540
Pactiv Evergreen Group Issuer, Inc. (A)(B)(D)	4.000	10-15-27		275,000	239,917
Metals and mining 1.2%
Anglo American Capital PLC (D)	4.750	04-10-27		200,000	191,277
Arsenal AIC Parent LLC (A)(D)	8.000	10-01-30		92,000	90,850
First Quantum Minerals, Ltd. (D)	6.875	10-15-27		280,000	238,483
Freeport-McMoRan, Inc. (A)	4.250	03-01-30		278,000	240,942
Freeport-McMoRan, Inc. (A)	5.400	11-14-34		196,000	173,402
Freeport-McMoRan, Inc. (A)	5.450	03-15-43		323,000	265,664
Hudbay Minerals, Inc. (A)(D)	4.500	04-01-26		52,000	48,397
Novelis Corp. (A)(D)	4.750	01-30-30		327,000	277,451
Real estate 2.2%					2,781,620
Hotel and resort REITs 0.2%
Host Hotels & Resorts LP (A)	3.375	12-15-29		209,000	172,219
Real estate management and development 0.0%
Cushman & Wakefield US Borrower LLC (A)(D)	8.875	09-01-31		17,000	16,118
Residential REITs 0.1%
American Homes 4 Rent LP (A)	4.250	02-15-28		154,000	141,695
Specialized REITs 1.9%
American Tower Corp. (A)	3.550	07-15-27		215,000	195,530
American Tower Corp. (A)	3.800	08-15-29		671,000	587,493
American Tower Trust I (D)	5.490	03-15-28		300,000	294,574
Crown Castle, Inc. (A)	3.800	02-15-28		175,000	157,827
GLP Capital LP (A)	3.250	01-15-32		119,000	90,006
GLP Capital LP (A)	4.000	01-15-30		121,000	100,980
GLP Capital LP (A)	5.375	04-15-26		231,000	221,391
Iron Mountain Information Management Services, Inc. (A)(D)	5.000	07-15-32		54,000	44,186
Iron Mountain, Inc. (A)(D)	5.250	07-15-30		130,000	112,850
SBA Tower Trust (D)	6.599	01-15-28		96,000	95,793
VICI Properties LP (A)(D)	3.875	02-15-29		151,000	128,189
VICI Properties LP (A)(D)	4.125	08-15-30		155,000	127,867
VICI Properties LP (A)(D)	4.625	12-01-29		279,000	241,324
VICI Properties LP (A)	5.125	05-15-32		62,000	53,578
Utilities 3.6%					4,636,148
Electric utilities 2.7%
American Electric Power Company, Inc. (A)	5.625	03-01-33		94,000	88,231
Atlantica Transmision Sur SA (D)	6.875	04-30-43		230,700	224,644
Constellation Energy Generation LLC (A)	6.125	01-15-34		81,000	78,296

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

23

	Rate (%)	Maturity date		Par value^	Value
Utilities (continued)
Electric utilities (continued)
Constellation Energy Generation LLC (A)	6.500	10-01-53		138,000	$129,615
Duke Energy Corp. (A)	5.750	09-15-33		278,000	264,063
FirstEnergy Corp. (A)	3.400	03-01-50		69,000	41,728
FirstEnergy Corp. (A)	7.375	11-15-31		120,000	129,418
Georgia Power Company (A)	4.950	05-17-33		144,000	131,438
NextEra Energy Capital Holdings, Inc. (A)	5.000	07-15-32		90,000	81,786
NRG Energy, Inc. (A)(D)	3.375	02-15-29		47,000	38,253
NRG Energy, Inc. (A)(D)	3.625	02-15-31		132,000	99,612
NRG Energy, Inc. (A)(D)	3.875	02-15-32		291,000	216,261
NRG Energy, Inc. (A)(D)	4.450	06-15-29		194,000	167,692
NRG Energy, Inc. (A)	5.750	01-15-28		250,000	234,022
NRG Energy, Inc. (A)(D)	7.000	03-15-33		240,000	226,845
NRG Energy, Inc. (10.250% to 3-15-28, then 5 Year CMT + 5.920%) (A)(D)(E)	10.250	03-15-28		189,000	182,455
Progress Energy, Inc. (A)	7.750	03-01-31		65,000	69,412
The Southern Company (A)	5.700	03-15-34		139,000	132,231
Vistra Operations Company LLC (A)(D)	3.700	01-30-27		486,000	441,879
Vistra Operations Company LLC (A)(D)	4.300	07-15-29		441,000	383,736
Vistra Operations Company LLC (A)(D)	6.950	10-15-33		160,000	152,398
Independent power and renewable electricity producers 0.4%
AES Panama Generation Holdings SRL (D)	4.375	05-31-30		230,914	188,380
NextEra Energy Operating Partners LP (A)(D)	3.875	10-15-26		193,000	175,479
NextEra Energy Operating Partners LP (A)(B)(D)	4.500	09-15-27		110,000	98,493
Multi-utilities 0.5%
Dominion Energy, Inc. (A)	3.375	04-01-30		169,000	142,122
NiSource, Inc. (A)	3.600	05-01-30		174,000	148,935
NiSource, Inc. (A)	5.250	03-30-28		55,000	53,399
NiSource, Inc. (A)	5.400	06-30-33		115,000	107,009
Sempra (A)	5.500	08-01-33		224,000	208,316
Municipal bonds 0.1% (0.0% of Total investments)					$115,428
(Cost $176,000)
Golden State Tobacco Securitization Corp. (California)	4.214	06-01-50		176,000	115,428
Collateralized mortgage obligations 7.5% (4.3% of Total investments)					$9,626,814
(Cost $13,366,049)
Commercial and residential 5.9%					7,536,260
BAMLL Commercial Mortgage Securities Trust
Series 2019-BPR, Class ENM (D)(G)	3.719	11-05-32		175,000	56,764
Barclays Commercial Mortgage Trust
Series 2019-C5, Class A2	3.043	11-15-52		241,000	232,509
BBCMS Mortgage Trust
Series 2020-C6, Class A2	2.690	02-15-53		155,000	138,831

24

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Commercial and residential (continued)
BBCMS Trust
Series 2015-SRCH, Class D (D)(G)	4.957	08-10-35		295,000	$204,555
Benchmark Mortgage Trust
Series 2019-B12, Class A2	3.001	08-15-52		121,452	107,972
BX Trust
Series 2022-CLS, Class A (D)	5.760	10-13-27		221,000	212,472
Citigroup Commercial Mortgage Trust
Series 2023-SMRT, Class A (D)(G)	5.820	10-12-40		163,000	157,007
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG)
Series 2012-CR3, Class XA IO	0.879	10-15-45		19,797	0
Commercial Mortgage Trust (Citigroup/Deutsche Bank AG)
Series 2018-COR3, Class XA IO	0.432	05-10-51		3,792,352	60,586
Commercial Mortgage Trust (Deutsche Bank AG)
Series 2013-300P, Class D (D)(G)	4.394	08-10-30		340,000	261,675
Ellington Financial Mortgage Trust
Series 2023-1, Class A1 (5.732% to 1-1-27, then 6.732% thereafter) (D)	5.732	02-25-68		456,048	445,826
GCAT Trust
Series 2023-NQM2, Class A1 (5.837% to 1-1-27, then 6.837% thereafter) (D)	5.837	11-25-67		444,395	434,935
GS Mortgage Securities Trust
Series 2017-485L, Class C (D)(G)	3.982	02-10-37		240,000	193,212
HarborView Mortgage Loan Trust
Series 2007-3, Class ES IO (D)	0.350	05-19-47		2,356,490	24,535
Series 2007-4, Class ES IO	0.350	07-19-47		2,416,092	31,656
Series 2007-6, Class ES IO (D)	0.343	08-19-37		2,483,737	30,665
Imperial Fund Mortgage Trust
Series 2023-NQM1, Class A1 (5.941% to 1-1-27, then 6.941% thereafter) (D)	5.941	02-25-68		442,308	433,774
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2020-NNN, Class AFX (D)	2.812	01-16-37		195,000	173,550
Natixis Commercial Mortgage Securities Trust
Series 2018-285M, Class D (D)(G)	3.790	11-15-32		100,000	61,250
Series 2018-ALXA, Class C (D)(G)	4.316	01-15-43		175,000	136,272
New Residential Mortgage Loan Trust
Series 2022-NQM4, Class A1 (5.000% to 6-1-26, then 6.000% thereafter) (D)	5.000	06-25-62		537,229	501,731
OBX Trust
Series 2022-NQM7, Class A1 (5.110% to 8-1-26, then 6.110% thereafter) (D)	5.110	08-25-62		507,880	491,392
Starwood Mortgage Residential Trust
Series 2022-4, Class A1 (5.192% to 6-1-26, then 6.192% thereafter) (D)	5.192	05-25-67		424,134	408,556
Towd Point Mortgage Trust
Series 2019-1, Class A1 (D)(G)	3.750	03-25-58		125,805	116,219
Verus Securitization Trust
Series 2023-2, Class A1 (6.193% to 3-1-27, then 7.193% thereafter) (D)	6.193	03-25-68		445,838	439,322

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

25

	Rate (%)	Maturity date		Par value^	Value
Commercial and residential (continued)
Series 2023-5, Class A1 (6.476% to 6-1-27, then 7.476% thereafter) (D)	6.476	06-25-68		439,005	$434,739
Series 2023-INV1, Class A1 (5.999% to 2-1-27, then 6.999% thereafter) (D)	5.999	02-25-68		1,776,376	1,746,255
U.S. Government Agency 1.6%					2,090,554
Government National Mortgage Association
Series 2012-114, Class IO	0.621	01-16-53		440,488	6,813
Series 2016-174, Class IO	0.891	11-16-56		649,924	25,700
Series 2017-109, Class IO	0.230	04-16-57		758,826	12,115
Series 2017-124, Class IO	0.628	01-16-59		640,941	20,169
Series 2017-135, Class IO	0.718	10-16-58		1,177,448	43,653
Series 2017-140, Class IO	0.486	02-16-59		573,770	17,292
Series 2017-20, Class IO	0.528	12-16-58		1,290,654	30,326
Series 2017-22, Class IO	0.755	12-16-57		361,250	12,742
Series 2017-46, Class IO	0.644	11-16-57		991,301	34,159
Series 2017-61, Class IO	0.745	05-16-59		625,239	22,562
Series 2017-74, Class IO	0.440	09-16-58		1,138,613	23,020
Series 2018-114, Class IO	0.710	04-16-60		766,202	31,081
Series 2018-158, Class IO	0.776	05-16-61		1,214,920	59,945
Series 2018-35, Class IO	0.531	03-16-60		1,621,546	55,209
Series 2018-43, Class IO	0.437	05-16-60		2,041,292	63,804
Series 2018-69, Class IO	0.612	04-16-60		642,399	27,605
Series 2018-9, Class IO	0.443	01-16-60		1,192,428	35,551
Series 2019-131, Class IO	0.802	07-16-61		920,496	47,848
Series 2020-100, Class IO	0.783	05-16-62		1,078,245	60,340
Series 2020-108, Class IO	0.847	06-16-62		1,210,145	68,209
Series 2020-114, Class IO	0.800	09-16-62		2,578,363	145,282
Series 2020-118, Class IO	0.882	06-16-62		1,876,177	112,147
Series 2020-119, Class IO	0.602	08-16-62		1,065,499	49,621
Series 2020-120, Class IO	0.761	05-16-62		591,533	32,758
Series 2020-137, Class IO	0.795	09-16-62		2,970,763	161,401
Series 2020-150, Class IO	0.962	12-16-62		1,655,568	107,609
Series 2020-170, Class IO	0.834	11-16-62		2,218,743	134,427
Series 2021-203, Class IO	0.869	07-16-63		1,774,513	111,483
Series 2021-3, Class IO	0.868	09-16-62		2,849,515	172,465
Series 2021-40, Class IO	0.824	02-16-63		698,231	41,864
Series 2022-150, Class IO	0.823	06-16-64		255,727	15,698
Series 2022-17, Class IO	0.802	06-16-64		1,498,191	92,775
Series 2022-181, Class IO	0.716	07-16-64		788,625	51,502
Series 2022-21, Class IO	0.783	10-16-63		656,369	39,827
Series 2022-53, Class IO	0.712	06-16-64		2,496,139	123,552

26

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Asset backed securities 11.4% (6.6% of Total investments)					$14,502,546
(Cost $15,629,286)
Asset backed securities 11.4%					14,502,546
ABPCI Direct Lending Fund I, Ltd.
Series 2020-1A, Class A (D)	3.199	12-20-30		95,142	89,991
Ally Auto Receivables Trust
Series 2022-3, Class A4	5.070	06-15-31		500,000	491,684
American Express Credit Corp.
Series 2023-4, Class A	5.150	09-15-30		670,000	656,778
Applebee’s Funding LLC
Series 2023-1A, Class A2 (D)	7.824	03-05-53		146,000	142,996
Aqua Finance Trust
Series 2021-A, Class A (D)	1.540	07-17-46		90,273	79,183
Arby’s Funding LLC
Series 2020-1A, Class A2 (D)	3.237	07-30-50		377,325	332,070
Avis Budget Rental Car Funding AESOP LLC
Series 2023-1A, Class A (D)	5.250	04-20-29		580,000	554,249
Carmax Auto Owner Trust
Series 2023-3, Class A4	5.260	02-15-29		100,000	97,873
CARS-DB4 LP
Series 2020-1A, Class B1 (D)	4.170	02-15-50		293,000	277,331
CLI Funding VI LLC
Series 2020-1A, Class A (D)	2.080	09-18-45		355,550	306,378
CLI Funding VIII LLC
Series 2022-1A, Class A (D)	2.720	01-18-47		204,352	171,137
Series 2023-1A, Class A (D)	6.310	06-18-48		454,104	446,465
ContiMortgage Home Equity Loan Trust
Series 1995-2, Class A5	8.100	08-15-25		15,003	14,652
CyrusOne Data Centers Issuer I LLC
Series 2023-1A, Class A2 (D)	4.300	04-20-48		291,000	254,908
DB Master Finance LLC
Series 2017-1A, Class A2II (D)	4.030	11-20-47		160,650	145,632
Dell Equipment Finance Trust
Series 2023-2, Class A3 (D)	5.650	01-22-29		400,000	397,903
Diamond Infrastructure Funding LLC
Series 2021-1A, Class C (D)	3.475	04-15-49		80,000	69,475
Domino’s Pizza Master Issuer LLC
Series 2017-1A, Class A23 (D)	4.118	07-25-47		504,238	464,541
Driven Brands Funding LLC
Series 2020-2A, Class A2 (D)	3.237	01-20-51		272,300	231,597
FirstKey Homes Trust
Series 2021-SFR1, Class D (D)	2.189	08-17-38		264,000	228,489
Ford Credit Auto Lease Trust
Series 2023-B, Class A4	5.870	01-15-27		175,000	174,661
Ford Credit Auto Owner Trust
Series 2022-D, Class A3	5.270	05-17-27		500,000	495,063
Series 2023-2, Class A (D)	5.280	02-15-36		512,000	499,583
General Motors Company
Series 2023-2, Class A (D)	5.340	06-15-30		675,000	661,672
GM Financial Consumer Automobile Receivables Trust

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

27

	Rate (%)	Maturity date		Par value^	Value
Asset backed securities (continued)
Series 2023-1, Class A4	4.590	07-17-28		290,000	$280,457
Golub Capital Partners Funding, Ltd.
Series 2020-1A, Class A2 (D)	3.208	01-22-29		172,286	158,667
Series 2021-1A, Class A2 (D)	2.773	04-20-29		240,126	225,144
HI-FI Music IP Issuer LP
Series 2022-1A, Class A2 (D)	3.939	02-01-62		245,000	221,842
Jack in the Box Funding LLC
Series 2019-1A, Class A23 (D)	4.970	08-25-49		114,075	100,806
Series 2022-1A, Class A2I (D)	3.445	02-26-52		294,880	261,948
Mercedes-Benz Auto Receivables Trust
Series 2022-1, Class A4	5.250	02-15-29		500,000	493,411
Series 2023-1, Class A4	4.310	04-16-29		290,000	278,685
MetroNet Infrastructure Issuer LLC
Series 2023-1A, Class A2 (D)	6.560	04-20-53		170,000	163,025
MVW LLC
Series 2020-1A, Class D (D)	7.140	10-20-37		814,235	779,094
Neighborly Issuer LLC
Series 2021-1A, Class A2 (D)	3.584	04-30-51		464,100	382,728
Series 2022-1A, Class A2 (D)	3.695	01-30-52		209,273	168,520
New Economy Assets Phase 1 Sponsor LLC
Series 2021-1, Class B1 (D)	2.410	10-20-61		139,000	115,821
NRZ Excess Spread-Collateralized Notes
Series 2021-FHT1, Class A (D)	3.104	07-25-26		53,129	47,808
PFS Financing Corp.
Series 2023-B, Class A (D)	5.270	05-15-28		335,000	328,735
Progress Residential Trust
Series 2021-SFR8, Class B (D)	1.681	10-17-38		165,000	143,489
Retained Vantage Data Centers Issuer LLC
Series 2023-1A, Class A2A (D)	5.000	09-15-48		275,000	246,061
SCF Equipment Leasing LLC
Series 2022-2A, Class A3 (D)	6.500	10-21-30		550,000	550,605
Sesac Finance LLC
Series 2019-1, Class A2 (D)	5.216	07-25-49		346,615	327,171
Sonic Capital LLC
Series 2020-1A, Class A2I (D)	3.845	01-20-50		306,962	277,759
Sunbird Engine Finance LLC
Series 2020-1A, Class A (D)	3.671	02-15-45		165,497	139,499
TIF Funding II LLC
Series 2021-1A, Class A (D)	1.650	02-20-46		191,866	157,629
Triton Container Finance VIII LLC
Series 2020-1A, Class A (D)	2.110	09-20-45		474,480	405,017
Series 2021-1A, Class A (D)	1.860	03-20-46		263,000	218,990
Vantage Data Centers LLC
Series 2020-2A, Class A2 (D)	1.992	09-15-45		239,000	199,441
VR Funding LLC
Series 2020-1A, Class A (D)	2.790	11-15-50		315,683	276,547
Willis Engine Structured Trust V
Series 2020-A, Class A (D)	3.228	03-15-45		99,260	82,519
Zaxby’s Funding LLC

28

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

	Rate (%)	Maturity date		Par value^	Value
Asset backed securities (continued)
Series 2021-1A, Class A2 (D)	3.238	07-30-51		228,735	$186,817

    

				Shares	Value
Common stocks 0.1% (0.1% of Total investments)					$136,865
(Cost $500,732)
Energy 0.0%					20,056
Oil, gas and consumable fuels 0.0%
Altera Infrastructure LP (H)				743	20,056
Utilities 0.1%					116,809
Multi-utilities 0.1%
Algonquin Power & Utilities Corp.				6,250	116,809
Preferred securities 0.2% (0.1% of Total investments)					$288,729
(Cost $394,505)
Communication services 0.1%					85,919
Wireless telecommunication services 0.1%
Telephone & Data Systems, Inc., 6.625% (A)				5,825	85,919
Financials 0.1%					202,810
Banks 0.1%
Wells Fargo & Company, 7.500%				192	202,810

    

				Par value^	Value
Escrow certificates 0.0% (0.0% of Total investments)					$626
(Cost $0)
LSC Communications, Inc. (D)(H)(I)				321,000	626

    

		Yield (%)		Shares	Value
Short-term investments 5.5% (3.2% of Total investments)					$6,983,095
(Cost $6,983,160)
Short-term funds 5.5%					6,983,095
John Hancock Collateral Trust (J)		5.5153(K)		698,547	6,983,095

    

Total investments (Cost $244,297,164) 173.1%					$220,927,228
Other assets and liabilities, net (73.1%)					(93,295,050)
Total net assets 100.0%					$127,632,178

    

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund unless otherwise indicated.
^All par values are denominated in U.S. dollars unless otherwise indicated.
Security Abbreviations and Legend
CME	Chicago Mercantile Exchange
CMT	Constant Maturity Treasury
ICE	Intercontinental Exchange

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

29

IO	Interest-Only Security - (Interest Tranche of Stripped Mortgage Pool). Rate shown is the annualized yield at the end of the period.
LIBOR	London Interbank Offered Rate
SOFR	Secured Overnight Financing Rate
(A)	All or a portion of this security is pledged as collateral pursuant to the Liquidity Agreement. Total collateral value at 10-31-23 was $111,461,418. A portion of the securities pledged as collateral were loaned pursuant to the Liquidity Agreement. The value of securities on loan amounted to $12,316,576.
(B)	All or a portion of this security is on loan as of 10-31-23, and is a component of the fund’s leverage under the Liquidity Agreement.
(C)	Security purchased or sold on a when-issued or delayed delivery basis.
(D)	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 $41,374,388 or 32.4% of the fund’s net assets as of 10-31-23.
(E)	Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.
(F)	Variable rate obligation. The coupon rate shown represents the rate at period end.
(G)	Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end.
(H)	Non-income producing security.
(I)	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements.
(J)	Investment is an affiliate of the fund, the advisor and/or subadvisor.
(K)	The rate shown is the annualized seven-day yield as of 10-31-23.

30

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

DERIVATIVES

SWAPS

Interest rate swaps
Counterparty (OTC)/ Centrally cleared	Notional amount	Currency	Payments made	Payments received	Fixed payment frequency	Floating payment frequency	Maturity date	Unamortized upfront payment paid (received)	Unrealized appreciation (depreciation)	Value
Centrally cleared	25,000,000	USD	Fixed 4.191%	USD SOFR Compounded OIS(a)	Annual	Quarterly	Jun 2026	—	$98,177	$98,177
								—	$98,177	$98,177

    

(a)	At 10-31-23, the overnight SOFR was 5.350%.

    

Derivatives Currency Abbreviations
USD	U.S. Dollar

    

Derivatives Abbreviations
OIS	Overnight Index Swap
OTC	Over-the-counter
SOFR	Secured Overnight Financing Rate

At 10-31-23, the aggregate cost of investments for federal income tax purposes was $245,013,855. Net unrealized depreciation aggregated to $23,988,450, of which $223,349 related to gross unrealized appreciation and $24,211,799 related to gross unrealized depreciation.

See Notes to financial statements regarding investment transactions and other derivatives information.

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

31

Financial statements

STATEMENT OF ASSETS AND LIABILITIES 10-31-23

Assets
Unaffiliated investments, at value (Cost $237,314,004)	$213,944,133
Affiliated investments, at value (Cost $6,983,160)	6,983,095
Total investments, at value (Cost $244,297,164)	220,927,228
Receivable for centrally cleared swaps	473,203
Cash	36,563
Interest receivable	1,700,645
Receivable for investments sold	2,873,597
Receivable for delayed delivery securities sold	4,880,118
Other assets	14,933
Total assets	230,906,287
Liabilities
Liquidity agreement	91,300,000
Payable for investments purchased	4,421,064
Payable for delayed delivery securities purchased	6,973,314
Interest payable	473,289
Payable to affiliates
Accounting and legal services fees	9,260
Trustees’ fees	169
Other liabilities and accrued expenses	97,013
Total liabilities	103,274,109
Net assets	$127,632,178
Net assets consist of
Paid-in capital	$175,067,706
Total distributable earnings (loss)	(47,435,528)
Net assets	$127,632,178
Net asset value per share
Based on 11,646,585 shares of beneficial interest outstanding - unlimited number of shares authorized with no par value	$10.96

32

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

STATEMENT OF OPERATIONS For the year ended 10-31-23

Investment income
Interest	$10,694,467
Dividends from affiliated investments	218,956
Dividends	55,823
Less foreign taxes withheld	(2,989)
Total investment income	10,966,257
Expenses
Investment management fees	1,261,526
Interest expense	5,093,278
Accounting and legal services fees	28,529
Transfer agent fees	58,814
Trustees’ fees	49,195
Custodian fees	29,702
Printing and postage	33,040
Professional fees	119,888
Stock exchange listing fees	23,748
Other	18,344
Total expenses	6,716,064
Less expense reductions	(18,070)
Net expenses	6,697,994
Net investment income	4,268,263
Realized and unrealized gain (loss)
Net realized gain (loss) on
Unaffiliated investments	(14,308,326)
Affiliated investments	5,033
Swap contracts	342,011
	(13,961,282)
Change in net unrealized appreciation (depreciation) of
Unaffiliated investments	9,868,166
Affiliated investments	(35)
Swap contracts	98,177
	9,966,308
Net realized and unrealized loss	(3,994,974)
Increase in net assets from operations	$273,289

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

33

STATEMENTS OF CHANGES IN NET ASSETS  

	Year ended 10-31-23	Year ended 10-31-22
Increase (decrease) in net assets
From operations
Net investment income	$4,268,263	$6,538,930
Net realized loss	(13,961,282)	(8,150,661)
Change in net unrealized appreciation (depreciation)	9,966,308	(40,648,874)
Increase (decrease) in net assets resulting from operations	273,289	(42,260,605)
Distributions to shareholders
From earnings	(4,826,346)	(10,716,025)
Total distributions	(4,826,346)	(10,716,025)
Total decrease	(4,553,057)	(52,976,630)
Net assets
Beginning of year	132,185,235	185,161,865
End of year	$127,632,178	$132,185,235
Share activity
Shares outstanding
Beginning of year	11,646,585	11,646,585
End of year	11,646,585	11,646,585

34

JOHN HANCOCK INCOME SECURITIES TRUST | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS For the year ended   10-31-23 

Cash flows from operating activities
Net increase in net assets from operations	$273,289
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Long-term investments purchased	(333,537,563)
Long-term investments sold	331,966,043
Net purchases and sales of short-term investments	(3,325,648)
Net amortization of premium (discount)	801,223
(Increase) Decrease in assets:
Receivable for centrally cleared swaps	(473,203)
Dividends and interest receivable	164,239
Receivable for investments sold	14,002,480
Receivable for delayed delivery securities sold	(3,397,419)
Other assets	6,417
Increase (Decrease) in liabilities:
Payable for investments purchased	(11,711,954)
Payable for delayed delivery securities purchased	5,494,787
Interest payable	154,012
Payable to affiliates	1,383
Other liabilities and accrued expenses	(8,821)
Net change in unrealized (appreciation) depreciation on:
Investments	(9,868,131)
Net realized (gain) loss on:
Investments	14,303,293
Net cash provided by operating activities	$4,844,427
Cash flows provided by (used in) financing activities
Distributions to shareholders	$(4,826,346)
Net cash used in financing activities	$(4,826,346)
Net increase in cash	$18,081
Cash at beginning of year	$18,482
Cash at end of year	$36,563
Supplemental disclosure of cash flow information:
Cash paid for interest	$(4,939,266)

SEE NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT | JOHN HANCOCK INCOME SECURITIES TRUST

35

Financial highlights

Period ended	10-31-23	10-31-22	10-31-21	10-31-20	10-31-19
Per share operating performance
Net asset value, beginning of period	$11.35	$15.90	$15.95	$15.57	$14.22
Net investment income1	0.37	0.56	0.71	0.65	0.60
Net realized and unrealized gain (loss) on investments	(0.35)	(4.19)	0.12	0.48	1.42
Total from investment operations	0.02	(3.63)	0.83	1.13	2.02
Less distributions
From net investment income	(0.41)	(0.70)	(0.84)	(0.75)	(0.67)
From net realized gain	—	(0.22)	(0.04)	—	—
Total distributions	(0.41)	(0.92)	(0.88)	(0.75)	(0.67)
Net asset value, end of period	$10.96	$11.35	$15.90	$15.95	$15.57
Per share market value, end of period	$9.80	$10.48	$15.46	$15.44	$14.58
Total return at net asset value (%)2,3	0.35	(23.60)	5.36	7.78	14.84
Total return at market value (%)2	(2.82)	(27.45)	5.83	11.42	16.37
Ratios and supplemental data
Net assets, end of period (in millions)	$128	$132	$185	$186	$181
Ratios (as a percentage of average net assets):
Expenses before reductions	4.90	2.10	1.30	1.67	2.55
Expenses including reductions4	4.89	2.08	1.29	1.66	2.54
Net investment income	3.12	4.13	4.42	4.15	3.99
Portfolio turnover (%)	148	101	60	66	50
Senior securities
Total debt outstanding end of period (in millions)	$91	$91	$91	$91	$91
Asset coverage per $1,000 of debt5	$2,398	$2,448	$3,028	$3,035	$2,986

    

1	Based on average daily shares outstanding.
2	Total return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that distributions from income, capital gains and tax return of capital, if any, were reinvested.
3	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
4	Expenses including reductions excluding interest expense were 1.17%, 1.01%, 0.94%, 0.95% and 0.98% for the periods ended 10-31-23, 10-31-22, 10-30-21, 10-31-20 and 10-31-19, respectively.
5	Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 8). As debt outstanding changes, the level of invested assets may change accordingly. Asset coverage ratio provides a measure of leverage.

36

JOHN HANCOCK Income Securities Trust | ANNUAL REPORT

SEE NOTES TO FINANCIAL STATEMENTS

Notes to financial statements

Note 1—Organization

John Hancock Income Securities Trust (the fund) is a closed-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act).

Note 2—Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.

Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:

Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC.

In order to value the securities, the fund uses the following valuation techniques: Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes 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, as well as broker supplied prices. Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Swaps are generally valued using evaluated prices obtained from an independent pricing vendor.

In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.

Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.

The fund uses a three tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology

ANNUAL REPORT | JOHN HANCOCK Income Securities Trust

37

used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.

The following is a summary of the values by input classification of the fund’s investments as of October 31, 2023, by major security category or type:

	Total value at 10-31-23	Level 1 quoted price	Level 2 significant observable inputs	Level 3 significant unobservable inputs
Investments in securities:
Assets
U.S. Government and Agency obligations	$109,365,711	—	$109,365,711	—
Corporate bonds	79,907,414	—	79,907,414	—
Municipal bonds	115,428	—	115,428	—
Collateralized mortgage obligations	9,626,814	—	9,626,814	—
Asset backed securities	14,502,546	—	14,502,546	—
Common stocks	136,865	$116,809	20,056	—
Preferred securities	288,729	288,729	—	—
Escrow certificates	626	—	—	$626
Short-term investments	6,983,095	6,983,095	—	—
Total investments in securities	$220,927,228	$7,388,633	$213,537,969	$626
Derivatives:
Assets
Swap contracts	$98,177	—	$98,177	—

The fund holds liabilities for which the fair value approximates the carrying amount for financial statement purposes. As of October 31, 2023, the liability for the fund’s Liquidity agreement on the Statement of assets and liabilities is categorized as Level 2 within the disclosure hierarchy.

When-issued/delayed-delivery securities. The fund may purchase or sell securities on a when-issued or delayed-delivery basis, or in a “To Be Announced” (TBA) or “forward commitment” transaction, with delivery or payment to occur at a later date beyond the normal settlement period. TBA securities resulting from these transactions are included in the portfolio or in a schedule to the portfolio (Sale Commitments Outstanding). At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security is reflected in its NAV. The price of such security and the date that the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues on debt securities until settlement takes place. At the time that the fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments.

Certain risks may arise upon entering into when-issued or delayed-delivery securities transactions, including the potential inability of counterparties to meet the terms of their contracts, and the issuer’s failure to issue the securities due to political, economic or other factors. Additionally, losses may arise due to changes in the value of the securities purchased or sold prior to settlement date.

Mortgage and asset backed securities. The fund may invest in mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, which are debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often

38

JOHN HANCOCK Income Securities Trust | ANNUAL REPORT

involve risks that are different from the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations (e.g. FNMA), may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. The fund is also subject to risks associated with securities with contractual cash flows including asset-backed and mortgage related securities such as collateralized mortgage obligations, mortgage pass-through securities and commercial mortgage-backed securities. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, pre-payments, delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a tax return of capital and/or capital gain, if any, are recorded as a reduction of cost of investments and/or as a realized gain, if amounts are estimable. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.

Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.

Overdrafts. Pursuant to the custodian agreement, the fund’s custodian may, in its discretion, advance funds to the fund to make properly authorized payments. When such payments result in an overdraft, the fund is obligated to repay the custodian for any overdraft, including any costs or expenses associated with the overdraft. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the maximum extent permitted by law, to the extent of any overdraft.

Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Statement of cash flows. A Statement of cash flows is presented when a fund has a significant amount of borrowing during the period, based on the average total borrowing in relation to total assets, or when a certain percentage of the fund’s investments is classified as Level 3 in the fair value hierarchy. Information on financial

ANNUAL REPORT | JOHN HANCOCK Income Securities Trust

39

transactions that have been settled through the receipt and disbursement of cash is presented in the Statement of cash flows. The cash amount shown in the Statement of cash flows is the amount included in the fund’s Statement of assets and liabilities and represents the cash on hand at the fund’s custodian and does not include any short-term investments or collateral on derivative contracts, if any.

Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

For federal income tax purposes, as of October 31, 2023, the fund has a short-term capital loss carryforward of $7,144,142 and a long-term capital loss carryforward of $16,965,908 available to offset future net realized capital gains. These carryforwards do not expire.

As of October 31, 2023, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends quarterly. Capital gain distributions, if any, are typically distributed annually.

The tax character of distributions for the years ended October 31, 2023 and 2022 was as follows:

	October 31, 2023	October 31, 2022
Ordinary income	$4,826,346	$8,926,367
Long-term capital gains	—	1,789,658
Total	$4,826,346	$10,716,025

As of October 31, 2023, the components of distributable earnings on a tax basis consisted of $662,972 of undistributed ordinary income.

Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital. 

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to amortization and accretion on debt securities and derivative transactions.

Note 3—Derivative instruments

The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.

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JOHN HANCOCK Income Securities Trust | ANNUAL REPORT

Certain derivatives are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.

Centrally-cleared swap contracts are subject to clearinghouse rules, including initial and variation margin requirements, daily settlement of obligations and the clearinghouse guarantee of payments to the broker. There is, however, still counterparty risk due to the potential insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a shortfall in the amount of margin held by the broker for its clients. Collateral or margin requirements for centrally-cleared derivatives are set by the broker or applicable clearinghouse. Margin for centrally-cleared transactions is detailed in the Statement of assets and liabilities as Receivable/Payable for centrally-cleared swaps. Securities pledged by the fund for centrally-cleared transactions, if any, are identified in the Fund’s investments.

Swaps. Swap agreements are agreements between the fund and a counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are privately negotiated in the OTC market (OTC swaps) or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as a component of unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.

Upfront payments made/received by the fund, if any, are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund.

Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that produce losses in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.

Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The fund settles accrued net interest receivable or payable under the swap contracts at specified, future intervals.

During the year ended October 31, 2023, the fund used interest rate swap contracts to manage against changes in the liquidity agreement interest rates. The fund held interest rate swaps with total USD notional amounts ranging up to $25.0 million, as measured at each quarter end.

Risk	Statement of assets and liabilities location	Financial instruments location	Assets derivatives fair value	Liabilities derivatives fair value
Interest rate	Swap contracts, at value1	Interest rate swaps	$98,177	—

    

1	Reflects cumulative value of swap contracts. Receivable/payable for centrally cleared swaps, which includes value and margin, are shown separately on the Statement of assets and liabilities.

ANNUAL REPORT | JOHN HANCOCK Income Securities Trust

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Effect of derivative instruments on the Statement of operations

The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended October 31, 2023:

	Statement of operations location - Net realized gain (loss) on:
Risk	Swap contracts
Interest rate	$342,011